Todays Fast-Paced Modern World - Case Study Example

R.Preeti 16/4/2008 INTERNATIONAL HRM Today's fast paced modern world offers a lot more than was previously imaginable! Every aspect of our lives is influenced not just by local, but also national and international factors, that govern our lives today. The enhancement and growth of communication channels, the spreading of production and consumption across the world and the changing lifestyles due to the influence and merging of cultures have become the order of the day. This is known as the New Age of Globalization, wherein the whole world is perceived as a Global Village. This paper talks about this Globalization that has taken over the entire 'village' by storm and the how it has brought about a remarked revolution in our lives! Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. (Website: http://www.globalization101.org/What_is_Globalization.html Globalization makes use of modern technological advancements and also focuses on the quick transfer of technology, to keep with the changing world. Therefore, Globalization is a phenomenon that charges towards progress and engulfs the whole world, in this process. The development in technology has led to the process of Cloning and other artificial forms of life. Today, we have hybrid varieties of fruits and vegetables being imported from various parts of the world; which truly symbolises globalization. The widespread Globalization has led to the free movement and transfer of goods, capital, technology and people, from one hemisphere to the other. Therefore, there is an influx of numerous commodities across the globe. BACKGROUND INFORMATION International Human Resources Management has gained immense importance today, thanks to the development of foreign policies, foreign relations and globalisation. Foreign Trade has received great impetus due to these factors and companies looking towards expanding their organisations are employing norms and policies to facilitate proper monitoring and maintenance of their employees. Due to growth in commerce and management, strategy planning and execution has become an integral part of organisation. Due to this, International Human Resources Management has come to the forefront. International Human Resources Management seeks to lay down common rules, solutions to problems and personnel management systems to help this new phase of global expansion transform into a success story and to help organisations adapt and procure better results. Working in a country that one is not familiar with, is a great challenge in itself. More so, when it involves the establishment of a branch office of your company or deals with the successful initiation of an extension of your company, in a scenario completely different from the one you are familiar with. Heading these operations that delve into international horizons and expansion plans of your company build up more responsibility that needs to be fulfilled, on your part. Therefore, a great amount of thought-processing and execution must go down into such plans, before embarking on a conclusion. Appar8tus is a US-owned company that has been producing medical tools used in surgery since 1972 and has built up a well-respected business in the USA, with an annual turnover of $250 million. Its US plant employs 3000 staff made up of skilled and semi-skilled workers, many employed in production process work, but a very significant number work in research and development and other highly skilled and knowledge-based areas. In the 1980s Appar8us began exporting to Europe and since the early 1990s has decided to set up plants overseas, but in doing so is conscious that it needs a fairly educated workforce that can cope with the highly technical nature of the work. In recognition that its major markets are in Europe the board decided to open subsidiaries in the UK initially, followed by Sweden and later France. The UK subsidiary was acquired through the takeover of a medical engineering company in 1992 and initially employed 250 people rising to 500 by the end of the decade. In 1994 the Swedish subsidiary was set up on a Greenfield site in a business park, initially employing 70 staff, rising to 300 staff by the end of the decade. In 1997 another new plant was set up in France that employs 250 staff. From the details provided and considering the HR woes of the company, it is evident that it is an ethnocentric company, with most of the home country employees being in a superior position, besides the home country operations and mode of work being conducted in accordance with the home country parameters. GLOBAL INTEGRATION AND LOCAL RESPONSIVENESS One of the most striking features of the managerial functioning Appar8tus, is that of Participative Management, wherein every employee is considered equal and is granted a say in the process of decision making, policy formulation and the overall running of the business. On proceeding with the implementation of this policy even in its subsidiaries, Appar8tus has a great chance of attracting some of the most qualitative resources, in terms of personnel. There is a greater degree of autonomy granted to the prospective employees, which is why it could prove to be a great workplace experience for them. The involvement of employees is extremely accentuated, which could bring about work satisfaction, above everything else. It also facilitates the company, since it ensures the proper comprehension of the company's as well as subsidiary's objectives in the minds of the host country and home country employees. However, when carried on to a greater extent, it could prove to be detrimental since it could breed discontentment in case of favortisim or the selection of a particular employee's proposals over the others'. This is another very encouraging step proposed by the management, as it encourages employees to come up with some great plans and policies. This grants them the creative freedom, besides also providing them with the opportunity to work as independent units within a grouped setup. This can be especially rewarding when implemented in an overseas venture, since it could pave way for better employee interaction, interest and subsequently pave way for the growth of the company. It could also lead to a greater degree of involvement with the management, thus, reducing the risk that is often associated with a foreign expansion venture. The practise of performance-based incentives and rewards is a great measure to boost the inventive and productive skills of an employee. It eggs him on to better his work and produce improved quality of output. When individual employee works by utilising his complete potential, it leads to the overall development and progress in the improvisation of the total output of work and functioning of the workplace. However, a recognised and lucid mode of assessment of meritocracy must be laid down, in order to avoid any unwanted repercussions or employee disputes. The employees must be made aware of this method of output evaluation and any recognitions must be made on the basis of clear understanding. The amount of flexibility advocated by Appar8tus is a sign of the importance being given to the employees of the company. The absence of strict rules and regulations can lead to a more free workplace, while also adopting the open door policy. This can lead to the lack of any inhibitions in approaching seniors or authorities regarding any problems. However, sometimes, the lack of rules can lead to indiscipline and a very casual mood to the workplace, leading to the dissipation of a serious approach. A centrist policy, by striking balance between the two extremes could be the ideal way to go! Special skills of employees are not duly recognised as proposed by the management. Instead, there exists the diffusion of persistence of such skill-based work approaches. The sharing of tasks can lead to the sharpening of multiple skills and thus, lead to the overall development of employees. However, as a downside to the same, the degree of specialization and high competency levels go down, when viewed across a cross-section of the various departments at the workplaces. Thus, multi-skilling could brush up skills in a number of spheres; however, the net output in one's specialized field is lowered. The population and workforce in the United Kingdom is rather different from the one is the home country, owing to societal differences and variations in attitude and culture. More conservative and formal, the workforce is clubbed under the workers' unions that operate for the workers' benefits. This creates management problems in catering to the demands of the workforce. Sweden turned out to be slightly similar to the UK, in terms of the workforce aligning themselves with workers' unions. However, what turned out to be a hit with them was the process of getting feedback from employees. The employees at France have a different story to tell, since they had a problem with the style of management. There w as the hierarchal system that posed a problem, besides the initiative of feedback which turned out to be another problem. Besides this, France had a number of holidays and this posed a problem to the employers. One common factor that was a problem was the fact that the company w as not adapted to local conditions and was insistent on imposing home country practices and culture. RECOMMENDATIONS The abolition of job descriptions can be a great move in doing away with workplace discrimination between employees, more so when there exists a cross-cultural employee mix. However, the lack of the same can sometimes reduce the impetus provided to the employees, since it acts in contrast to the special recognition of an employee's work, by granting him special posts and designation titles. It has been well acknowledged by most companies that the provision of special designations can go a long way in boosting an employee's work satisfaction derived, besides provoking better quality output. Hence, the absence of the same could result in a dip in such occurrences that are beneficial to the employees and the companies, on a mutual scale generally. As a company undertaking global expansion and dealing global transfer of personnel, it vital for Appar8tus to adopt and formulate programs to help its employees familiarize themselves with the experiences of moving from one country to another. Initially, an employee faces quite a number of problems, coping with the phases of adjustment and getting over the initial culture shock scenario. In such testing times, if the company can formulate special training sessions and adaptation procedures, it reflects the bond extended by the company, to safeguard the interests of its employees. It also carries forward the message that the company cares! Therefore, interest shown in emphasizing on the employees' welfare, shall go a long way in retaining loyalties. (Website: http://www.ebooks.com/ebooks/book_display.aspIID=231840) Thus, these are some of the strengths and flaws evident in the functioning of the HR policy of the company. A refinement of the proposal keeping in mind the points made shall aid the progress of the company, on the international arena. The HR team must reflect on the fact that his company needs to adapt to local conditions of society, culture and other factors that rule the lives of the citizens of countries like UK, France and Sweden. Thus, capitalising on the plus points, while minimising the negative ones must be the plan of action implemented by the company. Employees are usually employed for their specific skill sets and specialization in certain fields. However, when multi-skilling comes to the forefront, the employee may polish varied skills of his, but may lose out on the extensive knowledge required for his field of work, in particular. This may lead the company to lose out in the competition in terms of the extreme specialization that has made its way into the market scenario. Therefore, the solution for this problem, is Role Identification, wherein each employee is able to identify his individual role in the face of the company. The mode of implementing changes in his field and recognizing his value to the company, goes a long way in employee-management bonding. The company must recognize the services of employees and provide guidance and help, in aiding them settle down amidst changing scenarios. First comes the phase of adaptation, when the employee finds the environment new and different from the routine he has been subject to. He needs to get used to the whole new setup, which could probably include a new language, culture or practices in general. This could create disillusionment and slight depression. Next, the employee might feel like moving back home and returning to his routine. The phase of experiencing a culture shock, might take of his vigour and excitement. The third phase is the one when the employee begins to adjust to the whole situation and regains his vitality. This three-tier phase of adaptation can be made easier and successful if the company extends its support and helps the employee settle down, by creating easier conditions of work, monitoring their adaptation and progress Helping employees settle down amidst alien conditions is the first aspect of countering the culture shock or novelty experienced. When an employee returns from his overseas experience, the company m must help him acquaint himself with the changed conditions back home. He may not comprehend the altered practices at his workplace or might feel that his expectations on returning have not been met with. Therefore, the company must also develop programs and monitoring systems, to help him settle down to the second shock---that on returning home. They could perhaps implement a program that keeps the expatriates informed about the new changes that have been implemented in their organisation back home. They could also organize training sessions on the return of their employees, to facilitate easy adaptation and help them get over the shock phase. ('Repatriation', website: http://www.intercultural-training.co.uk/repatriation.asp) When employees return form their international program and adapt to home conditions, they turn out to be well-experienced and informed about numerous programs, policies and fields of work. The company, must surely make sue of this knowledge since it could help them scale great heights. The company could appoint the employee in question to coach a newcomer or narrate his experiences in specific fields at conferences and the like. The employee too feels acknowledged and satisfied that his company considers him important and treasures his knowledge and services. This strengthens the equation between the company and its employees, forging mutual contentment and loyalty. The company, in the process of endeavoring to avoid any misdemeanors or power-plays, cold wars and jealousies, must lay down a common standard for assessing and appraising employee performances and must reveal the same. This way, employees shall strive to achieve the set standard for rewards, improving the overall performance of the company. Moreover, the company shall also forge unity and a collective and qualitative approach towards work! All along the company must exhibit the fact that it values and treasures its employees. All programs, policies, staff appraisals and schemes must be made keeping this in mind. Every endeavour of the company must reveal this ideal, which is a great way to cement relations, effect an increment in the quality and quantity of output, retaining and embracing trust, faithfulness and loyalty. It is said that a company must not function as a physical quantity; rather, it must adopt a policy of diminishing the business-like approach and nurture relations as well. Another striking feature is that of working over-time and resentment towards this, in the host countries like UK, France and Sweden. It is commonly felt by t he company that France does have excessive holidays, which could hamper the work processes in the subsidiary. The best way to do away with this is to recognise genuine holidays and to strike a balance between work and non-work days. Perhaps, the number of hours put in daily could be increased by an hour or so, in order to make up for the lost days of work. CONCLUSION Therefore, in order to execute successful expansion plans, Appar8tus must contemplate rectifications of errors. Following these simple, yet powerful steps can help the company overcome its Human Resources problems and establish itself as a successful organisation. It can also occupy the mantle in terms of being the best in valuing and in strong bonding between the company and its employees, besides employee-employee bonds! References 'Developing a Globally Competitive Corporate Culture', website: http://spectrum.troy.edu/vorism/670_hrm.htm Rodrigues, C, '1996, 'International Management', West. 'Repatriation', website: http://www.intercultural-training.co.uk/repatriation.asp Linen, Margaret , 'Repatriation: The frequently forgotten phase of an international assignment'. Evans, Paul; Pucik, Vladimir; 2002 'The Global Challenge: Frameworks for International Human Resource Management', 1st edition, McGraw-Hill/Irwin. Mathis, Robert L.; Jackson, John; 2006, 'Human Resource Management', Thomson South-Western. Website: http://www.ebooks.com/ebooks/book_display.aspIID=231840 Bohlander, George; Snell, Scott; 'Managing Human Resources'. Guion, Robert M., 1998 'Assessment, measurement, and prediction for personnel decisions'. Read More