International Human Resource Management - Datawind Company - Case Study Example

International Human Resource Management Name Course Tutor Institution Date International Human Resource Management Introduction Datawind Company is strategizing on sending an employee to India to fill the position of a corporate controller. Datawind Company is based in Montreal Canada, but has various operations in India. Conducting a cross-cultural training is important to prepare an employee for the challenges that he might experience in India, as a result of cultural differences. The following is a human resource plan that contains information about Datawind Company, its goals, and objectives. The program also provides an analysis of Canada as the parent country, and India as the host country, focusing on their general values, standards of living and their social and economic situations. The program then gives a detailed description of the job and the components of cross-cultural training that will be needed. Context A. Business strategy and needs Datawind Company focuses on providing wireless network access products that are accessible and affordable. Datawind’s products are well known for solving bandwidth limitations of cellular networks (Singh & Roy 2014, p. 117). Its technologies provide breakthroughs by increasing the speed of content delivery by ten to thirty times. The company was founded in Montreal Canada, and is widely known for developing the Aakash tablet computer (Singh & Roy 2014, pp. 117). The computer is regarded as the world’s cheapest computer and was specially developed for the ministry of human resource development, in India. Some of the products of Datawind Company include the UbiSlate tablet computers, UbiSurfer netbooks, and PocketSurfer smartphones (Bhattacharya, Devi & Foster 2012, p. 24). Datawind's offices are located in the UK, USA, Dallas, Mississauga, London, Canada, New Delhi and Amritsar (Pallakoff 2009, p. 518). In countries such as India, Datawind Company is among the largest suppliers of lowest cost tablet computers. The company has received recognition on various prestigious recognition platforms such as MIT Technology's review of the world's top fifty smartest companies and classroom Revolutionary’ by the Forbes Magazine’s 2012 Impact 15 List (Bhattacharya, Devi & Foster 2012, p. 24). Datawind Company works with various nonprofit organizations and governments, to help them achieve their goals of improving the quality of education, and bridging the digital divide. In addition to producing devices, Datawind Company also gets its revenues from advertising, content, and web services. Datawind’s goals and objectives The human resource plan will adhere to Datawind company’s goals and objectives which are to bridge the digital divide. The goals and objectives of Datawind Company are based on the fact that in the developing world, billions of people still cannot access the internet (Bhattacharya, Devi & Foster 2012, p. 24). The main objective is to tackle the global digital divide problem, by decreasing education disparity through the use of technology in the less developed companies and bridging the gap between age, gender and income group. According to Bhattacharya, Devi and Foster (2012, p. 24), Suneet Singh Tuli, stated that Datawind Company's aim was to produce internet capable devices that cost the same as the typical one week’s salary in India, which is $50 (Pallakoff 2009, p. 519). Datawind, therefore, seeks to be a part of the solution of lack of internet access to billions of people in developing countries. Producing the Aakash tablet, which was built in union with the government of India, was a solution to Indian students because they could buy it at subsidized prices and access free internet. The business model of Datawind Company is focused on providing web access devices that are cost effective and have free internet access during the entry level of the market (Singh & Roy 2014, p. 118). Not only is the Aakash tablet affordable, but it offers the best web access experience for the users. It's patented web compression method, and acceleration of data access ensures rich web content, which can be downloaded at the usual costs fraction. Datawind uses its devices as customer acquisition tools. The company, therefore, can create streams of revenue collection that are recurring using an ecosystem consisting of applications, content, networking and advertising services. The usage of the products is a source of recurring revenue streams and, therefore, the company can reduce the price margin for its hardware, allowing for products of low cost (Singh & Roy 2014, p. 117). Datawind Company target customers who are price sensitive. During the entry level of the market, the company foregoes hardware margins and drives a recurring revenue stream. This generation of revenue is achieved in the after sales revenue such as revenues shared from other network operators, device warranties, subscriptions, and content, advertising location-based content and page impressions (Singh & Roy 2014, p. 1130). Its advertising revenues are generated through pre-loading specific applications on the devices. To retain customers, Datawind platform of web delivery reduces the consumption of bandwidth. To achieve this, the company purchases wholesale access to mobile data from wireless network operators such as mobile virtual network operator. They also buy access to mobile data by forming a bundling relationship with the aim of providing free mobile internet access to its customers. The business model of formulating an ecosystem of full service for generating revenues helps the company achieve its goal of providing low-cost hardware products (Pallakoff 2009, p. 519). Products and potential size of the market Datawind company’s mobile devices offer the best hope of bringing internet access to Indian citizens. The products that Datawind offers are PocketSurfer series, UbiSurfer series netbooks, Aakash tablets and UbiSlate tablet series. The first version of PocketSurfer series product was launched in 2004. The PocketSurfer smart phones series include the PocketSurfer5x, PocketSurfer 5C+ and the PocketSurfer3G5 (Pallakoff 2009, p. 518). The device is handheld and can work in collaboration with a phone that is Bluetooth enabled. The products are slim and light models and are regarded as the world’s fastest handheld internet device. The latest models of the devices offer a desktop-like experience with wide coloured screens that display web pages in their original layouts (Singh & Roy 2014, p. 1130). UbiSurfer series Netbooks were launched in 2010, in India. The netbooks offer web browsing services in collaboration with an integrated modem and a Sim card slot. The netbook has a nine-inch screen and weighs around seven hundred grams (Singh & Roy 2014, p. 1130). The netbook that is portable supports both GSM and CDMA networks. It also offers LAN and WIFI connectivity with a cellular modem that is inbuilt and embedded Sim card slot, which allows the user to access the network anywhere there is a mobile phone signal. The netbooks are equipped with UbiSurfer browser that allows pages to load in less than seven minutes. The free usage model is useful for users because they are eliminated from any binding contracts, credit checks and activation fees. The Aakash tablets will help enhance the quality of education in India. The latest models have a calling functionality and a powerful battery that provides the user with longer back-up time. The device is low cost and allows internet access to everyone on the go. Finally, the UbiSlate tablet series are android tablets with touch screens that also work as smartphones. They offer web access anywhere and anytime and the best multimedia content, applications and android games (Singh & Roy 2014, p. 1129). India is a potential market for Datawind’s products because it is among the fastest growing mobile markets with a population of 1.2 billion people (Banerjee 2008, p. 367). While more than eight hundred people in India possess mobile phones, India is still a potential market because more than ten million people are signing up for mobile phones every month. The number of Indian citizens with access to the internet regularly is still very small and is rated at ten percent. India market is also a potential market for the products of Datawind company’s products because the Indian government is focused on making sure that all its disconnected citizens are connected and pulled into the modern economy (Banerjee 2008, p. 370). Demand for internationalization strategy The internalization strategy focuses on reaching to out to the poor people in the Indian population. Datawind strategizes on putting their tablets within the reach of the poor by bringing down their prices as much as possible (Banerjee 2008, p. 369). Many Indians who are ranked as poor are willing to spend a percentage of their month’s income to buy tools that help them educate themselves and their families. Datawind strategy of treating the poor as a vast consumer is effective because the poor feel the need to use smartphones and tablets, but find it hard because they are mostly expensive and unaffordable for them (Banerjee 2008, p. 369). There is also a need for the internationalization strategy of selling Datawind pocket surfer smartphones to the world’s poorest people to bring a new era of connectivity in India. The Indian market has been exhibiting an insatiable demand for smartphones, which undergoes a two hundred and fifty percent annual growth (Singh & Roy 2014, p. 117). The strategy will be targeted at the price sensitive Indian customers who are in the medium-low price range. Country analysis Canada (parent country) Canada is the parent country of Datawind Company and employee being sent to work in India. Canada is located in the northern part of North America. Being officially bilingual, Canada is one of the most ethnically diverse multicultural countries in the world (Wall 2005, p. 294). Canada consists mainly of immigrants who may have come there in the past ten to twenty years, although many have been there for several generations. As opposed to Indian, which is a recently industrialized country, Canada is regarded as a developed country and is one of the wealthiest. About seventy-seven percent of the Canadians are Christians, but there is a diversity of different denominations (Wall 2005, p. 294). The Canadian society is, however, highly secularized. Many of the Canadian populations are proud of their multiculturalism, and ethnic groups are encouraged to maintain their unique cultures. The Canadians in the Atlantic regions are considered to be very traditional and conservative, while the ones in the west are formal and fairly reserved. The Canadian citizens in the western provinces are more friendly and open. Life is fast paced in the urban areas of Canada, while in the rest of the areas; life is calm and relaxed (Pallakoff 2009, p. 519). There is a diversity of meals according to the ethnic influences of the family’s unique cultures. Although the standard three meals per day tradition and regular coffee breaks and snacks at school and work exist, it is hard to generalize what the Canadians have for breakfast lunch and dinner. The family unit in Canadian society is the centre of society. Independence is highly valued in Canada, and people are encouraged to learn basic independence skills. Compared to other developed countries, the standard of living in Canada is cheaper (Wall 2005, p. 300). Canada is ruled by a parliamentary system in a constitutional monarchy context. The constitution is the supreme law governing Canada. English and French are the two official languages, and citizens have the right to receive public service using the two languages. Food is cheaper in Canada and dining out is affordable. Other sectors that are cheap are power, car insurance, petrol and cars (Pallakoff 2009, p. 518). India India is the host country, in this case, whose official name is the Republic of India, and it is a country found in south Asia. By area, it is listed as the seventh largest country, and it is the second largest in population (Banerjee 2008, p. 367). India is known to be the origin of four world religions, Buddhism, Hinduism, Jainism, and Sikhism. By nominal GDP, its economy is the tenth largest in the world. The market-based economic reforms in 1991 saw India become one of the fastest growing economies in the world, and therefore, it is recognized as a newly industrialized country. India, however, continues to handle challenges related to corruption, poverty, terrorism, malnutrition and inefficient health care. India is a democratic country, which has the largest population as compared to all democratic countries. It has a multi-party system and is a parliamentary republic governed by the constitution. It is subdivided into twenty-nine states and seven union territories. India has maintained a cordial relationship with most nations after gaining its independence in 1947 (Singh & Roy, 2014, p. 118). The International Monetary Fund states that as of 2014, the economy of India is worth $2.047 trillion. By value of market exchange rate, it is the eleventh largest economy in the world. The telecommunication industry of India is the fastest growing in the world, and during the 2010-2011 periods, there were two hundred and twenty-seven million subscribers (Bhattacharya, Devi & Foster, 2012, p. 25). The two major languages used by families in India are Dravidian and Indo-Aryan. While it does not have a national language, Hindi, which is spoken by the largest numbers of people, is the official government language. English is regarded as the subsidiary official language because it is extensively used in business and administration. In education, English is regarded as an important language, especially when pursuing higher education (Bhattacharya, Devi & Foster, 2012, p. 25). India is noted for its diversity in religion. The predominant religion is Hinduism, while other religions such as Sikhism, Islam, Jainism and Christianity exist. In the traditional Indian practices, family beliefs are deemed as very important and joint families consisting of multiple generations is the most common norms. There are, however, nuclear families found in the urban setups in India today. Marriages are arranged by family members, which is an accepted practice (Pallakoff 2009, p. 518). Indians value cooperation for the survival of any formed group. Great emphasis is laid on maintaining group harmony, and since most Indians have a low ego, they strive to be anonymous. Indians do not encourage boasting or loud behaviour, and when one achieves something, they are encouraged to be modest about it. Respect for one's values and dignity is valued, and they believe that silence is comforting. Indians also value high levels of patience and generosity, and they do feel the necessity to save for the future or have insurance covers, including life insurance covers. Indians do not value work ethic because in the past, they only worked to meet immediate and concrete needs. They, therefore, fail to understand why one has to work with no immediate reasons (Pallakoff 2009, p. 518). B. Job analysis and description Datawind Company is seeking to send a corporate controller to India, to oversee the accounting operations of the company, in India. The general job descriptions of the corporate controller will be to produce periodic financial reports, keep adequate accounting record systems, and oversee the employment of comprehensive controls and budget measures that will help in reducing risks. The corporate controller will be required to enhance the accuracy of the reported financial results of the company, and make sure that the reported information complies with the necessary accounting principles and international standards of financial reporting. Responsibilities The corporate controller will be given management responsibilities in the following areas; he will be required to manage teams of accountants in India, and make sure that accounting departments of the company in the local and global scale are up to standard. The corporate controller will also be required to make sure that the operations in India run smoothly for the company to achieve its goals and objectives there. In addition, he will handle the responsibility of maintaining documented accounting procedures and policies systems, manage functions that are outsourced and oversee the transaction processes by making sure the right procedures and policies are followed. He will also be given the following reporting responsibilities; the corporate controller will be required to complete financial statements in a timely manner, file quarterly and annual reports and oversee the corporate annual report preparation. In addition, he will be required to calculate the variance in the company's budget and report the issues that are significant. The corporate controller will make sure that the accounts payable and accounts receivable are handled appropriately and promptly. He will make sure payrolls are processed early enough, and that debt payments are done in time. To meet the company’s goals and objectives in India, the employee has to have at least a degree in business administration and accounting. He also needs to have an equivalent business experience in a competent organization. Having prior international experience is an added advantage and experience in working serving in several departments within this company is also important. Having had ten or more years of progressive responsible behaviour for a major company other than Datawind Company is also a desirable skill. The employee has to have the necessary skills to handle diversity in the workforce, and must be a fast learner. Cross-cultural training and supports strategy Cross cultural training is important in developing awareness among people who are of different cultural backgrounds. This cross-cultural training and support strategy will involve a variety of training courses. The training will take two parallel approaches of general cross-cultural training and culture training of the specific country, which is India. The aim of this training will be to help the employee deal with the ways in which culture is manifested in the workplace and its various applications. The employee will be able to evaluate and tackle the challenges brought about by cross-cultural differences in the workplace constructively. The training will also be aimed at helping the employee live and work comfortably in the host country, therefore, enhancing his adjustment (Rehg, Gundlach & Grigorian 2012, p. 219). This training is relevant for Datawind Company because it operates in a global environment, and therefore, cultural knowledge and language ability of its employees are essential for it to succeed in India. The training is also important in the context of India because the employee will have basic knowledge of the general values of India and the cultural differences to expect in the new workplace. The following components of cross-cultural training and support will be involved in the training (Bennett, Aston & Colquhoun 2000, p. 241). Cultural specific training This training will be focused on the values, etiquette, negotiation styles, protocol, morals, ethics and business practices of the host country (Rehg, Gundlach & Grigorian 2012, p. 218). This training will help the employee to have key skills necessary for developing successful business relationships. The training will also involve language training such as Hindi, which is the most common spoken language in India. This is important because knowledge of the host country’s language is important for the successful living and working in the country. The employee will not necessarily be needed to be proficient in the language, but basic knowledge will be important to reduce misunderstanding and misinterpretation. Learning of the language will increases the chances of the Indian nationals to trust him and will enhance his adjustment. Cross-cultural team building This component will be aimed at raising the employee’s awareness of differences of culture between him and other team members in the host country. This training will, therefore, foster mutual respect, understanding and respect between him and the team members. The employee will have good communication skills (Bennett, Aston & Colquhoun 2000, p. 241). Cross cultural management training The employee will be given management responsibilities in India. This training will, therefore, equip the employee with the knowledge and skills to supervise the multi-cultural staff effectively. After the training, the employee will enable the employee to understand the work environment better (Bennett, Aston & Colquhoun 2000, p. 240). Cross cultural negotiation training This training will help the employee to have the necessary negation skills that are needed for foreign clients. It will also be necessary when the employee needs to discuss possible terms and conditions (Bennett, Aston & Colquhoun 2000, p. 242). Cost effectiveness The effectiveness of cross-cultural training will be measured through evaluating improvement in productivity, greater workforce flexibility, how motivated the employees are, savings on capital and material costs, and improvements on the final products (Banerjee 2008, p. 371). Effectiveness of the cross cultural training can be measured at different levels. The first level is the reaction which can be measured by assessing the satisfaction of the trainee. The focus of this measure will be how much the learner is satisfied with the program. The second level is how much the trainee has learned from the program. The measure used for the learning level is learning attitudes of the trainee. The measure will be focused on the facts, principles and techniques the trainee has learned, and how he applies them in his position in the workplace. The third level is the behaviour of the trained individual. Any changes in the behaviour of the individual will be the measure used for this level. The measure will be focused on evaluating the changes the individual exhibits while he performs his duties, as a result of the cross-cultural training (Bennett, Aston & Colquhoun 2000, p. 240). The result is the final level, and they can be measured through tangible results, including quantity, quality and cost. The effectiveness of cross-cultural training will, however, be done by first scrutinizing the missions and objectives of the Datawind Company to offer the training. Factors that will be considered will be raw materials, costs incurred, personnel involved and production (Rehg, Gundlach & Grigorian 2012, p. 215). The type of the problem and the training needs will also be assessed. The budget for the training, available resources, time frames for completing the training exercise and the expected results will also be evaluated. The results after training the employee, and how he has applied what he has learned, will be assessed and compared to the costs of training to determine the effectiveness of the training. The cost of training will be twenty thousand dollars for the cross-cultural training and support program. The budget includes both the direct and indirect costs that will be attributed to the training project. The direct costs will involve the overall cost of training the employee, travel costs, material costs and support costs. Reference List Banerjee, S, 2008, ‘Dimensions of Indian culture, core cultural values and marketing implications: An analysis,’ Cross Cultural Management: An International Journal, 15(4), pp. 367-378. Bennett, R, Aston, A, & Colquhoun, T, 2000, ‘Cross‐cultural training: A critical step in ensuring the success of international assignments,’ Human Resource Management, 39(2‐3), pp. 239-250. Bhattacharya, J, Devi, C, & Foster, KR, 2012, ‘Searching for the Aakash [Tools & Toys],’ Spectrum, IEEE, 49(4), pp. 24-25. Pallakoff, M, 2009, U.S. Patent Application 12/367, pp. 518. Rehg, MT, Gundlach, MJ, & Grigorian, RA, 2012, ‘Examining the influence of cross-cultural training on cultural intelligence and specific self-efficacy,’ Cross Cultural Management: an International Journal, 19(2), pp. 215-232. Singh, R, & Roy, SK, 2014, ‘Case Study 13: Marketing the $35 Akash Tablet,’ In Marketing Cases from Emerging Markets (pp. 117-136). Springer Berlin Heidelberg. Wall, G, 2005, ‘General Versus Specific Environmental Concern A Western Canadian Case,’ Environment and Behavior, 27(3), pp. 294-316. Read More