Guidance Required for an American Employee in the Proposed Overseas Assignment in China - Essay Example

Foreign assignment Running Head: Foreign assignment HR Management: Case study-Foreign assignment Foreign assignment 2 Table of contents Executive Summary Page 3 Introduction Page 4….5 Training requirements for Linda based on LESCANT approaches Page 5....12 a. Language Page 5....6 b. Environment & Technology Page 6....7 c. Social organizations Page 7....8 d. Contexting Page 9...10 e. Authority Page 9....10 f. Nonverbal Behavior Page 10....11 g. Time concepts Page 11....12 Other essential requirements for an overseas assignment Page 13….15 a. Support to family Page 13 b. Accommodation and food Page 13….14 c. Motivation Page 14….15 Recommendations for HR manager Page 15....16 Recommendations for employee (Linda) Page 17 Conclusions Page 18….19 References Page 20….21 Foreign assignment 3 Executive Summary For the successful execution of an overseas assignment, the employee must be well aware of the cultural, political, social, regional and religious aspects of the destination country. Since both China and America are ruled by different political systems, the life styles and the work cultures may be different in these countries. The awareness about the 7 cultural variables; language, environment, social organizations, contexting, authority, nonverbal behaviors and time concepts, described in LESCANT approach will make an employee better equipped in dealing with the challenges of an overseas assignment. The Human resources manager who has the responsibility of preparing an employee for overseas assignment must consider other things also which may arises during the employees stay in the foreign country. Food habits and housing requirements may be different in different countries. The Americans has enjoyed the luxury of good foods and housing facilities and hence they may require the same thing while on deputation of an overseas assignment. The HR manager must be able to forecast the difficulties an American may faces in an overseas assignment and he should be able to provide solutions for that. The success of an overseas assignment lies in how comfortable the employee is in his/her stay in the foreign country. The awareness about the designated country, work culture, religions, society and the political system will be helpful for the overseas assignment. Foreign assignment 4 Introduction Globalization, Liberalization and Privatization policies, has opened the doors widely for business world. Big business tycoons were spreading their wings to other countries based on the business potentials and infrastructure facilities. International trade including exports and imports has increased a lot for the last two decades. The consumers are also happy to have variety of goods from different countries at their finger tips. The business competition also has been increased immensely because of the globalization policies. The small scale domestic industries are struggling hard to compete with the big MNCs. The MNCs are better organized and they have immense financial capabilities to innovate new products at cheaper rates and hence the small scale industries have difficulty in competing with such big MNCs in price and also in quality. Most of the business tycoons, expanding their business interests to many other countries to explore the possibilities there. They became saturated in their native countries and further expansion may be possible for them only in a foreign country. When expanding a business to a foreign country there are lots of factors which have to be considered seriously like the language differences, cultural differences, social differences, regional differences, political differences and environmental differences. It is the duty of the Human Resources department to identify and train proper persons for the international mission. Foreign assignment 5 “As China is in the process of modernization, it has attempted to reform its large-scale industrial enterprises and to address the problems of change. Those changes have included: increased entrepreneurial autonomy, the rise of private and rural enterprises, a massive increase in foreign direct investment, a large increase in exports to the developed world, increased globalization and involvement in the international market” (Siu, N. Y. & Darby, R. 1999) This paper researches the training and guidance required for an American employee, Linda, in her proposed overseas assignment in China, based on the given SHRM case study Training requirements for Linda based on LESCANT approaches The cultural dimensions of international business operations are defined by former professor of Eastern Michigan University, David A. Victor in his famous LESCANT model of cultural variables. They are Language, Environment, Social organization, Contexting, Authority, Nonverbal behavior, and Temporal conception. (The cultural variables for development of models of culture) These variables need to be addressed in the training and preparation of Linda in her Chinese assignment. Language Language is the essential thing required for effective communication. Most of the Chinese people don’t have much fluency in English language and the most of the American people don’t know much about the Chinese language also. So the first thing Foreign assignment 6 needed for Linda’s Chinese assignment is her Chinese language development. It is necessary for her to interact with Chinese people in China and it is not advisable to think that all the people who may come in contact with Linda in China may be fluent in English. Language is an important entity in every business negotiations especially in international business negotiations. The views and opinions of each party can be communicated properly if both the parties don’t have a language barrier. Language fluency and accent can affect a business deal. Both the parties must understand clearly what others are trying to communicate or convince. The competency of Chinese people in English language is less compared to some other countries like India, Japan or Pakistan. “English has no legacy in the land of China. In fact, China had a long history of deliberately avoiding contact with the West for fear of cultural contamination.” (Ji Shaobin) Environment & Technology The work environment and the technology used in America and China may be different. China is ruled by communism while America is under democratic rules and hence the freedom and liberties of the people in these countries may be different. Linda has to be given training for adopting with such different environmental situations in China. The natural resources, the weather, political system, all will be different in China compared to America. The working culture and environment will be different in America and China. So Linda needs to know more about these variables for effective negotiation Foreign assignment 7 process with the Chinese people. “Whenever two parties negotiate, the entire process occurs under two umbrella contexts, environmental and immediate. The environmental context refers to forces in the environment that are beyond the control of either party involved in the negotiations.” (Phatak & Habib, 1996) The American technology in many areas found far more superior than the Chinese technology, and hence the technological dominance of America may reflect in any business deal with America and China. Moreover the Americans are looking suspiciously at the growth of China and hence they will be extremely careful about the deals in which technology comes as a factor. Most of the American business operations have been accomplished by rapid responses because of the technological advances. The same thing may not be correct in China. Because of the big size of the population, the access of technological advancements may be limited to the public in China and hence Linda must be prepared to adjust with all such differences. Social Organizations Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." (Geert Hofstede) Geert Hofstedes research gives us insights into other cultures so that we can be more effective when interacting with people in other countries. If these principles formulated by Geert Hofstede studied and implemented properly, it can reduce the level of concern, frustration and anxiety of in international business communication process. Foreign assignment 8 “In China the management training function is not only aligned to economic structure and development but also to political and ideological beliefs” (Siu, N. Y. & Darby, R. 1999) The social setups in America and China are extremely different. Religion is an important aspect in American society while in China it is not prominent. Social organizations can have an external influence on individuals. Class systems in America and China are entirely different. In America there are upper class, middle class and ordinary class people are there where as in China because of socialism only the working class is there. Family structure is also different in these countries. In America the democracy is followed while China communism is followed. In America everything is transparent while in China everything will be opaque. The recreational activities are more in America compared to China. The judicial system in America is more open compared to China. An American employee who enjoyed lot of freedom in every aspect of his work at their work place and personal life may find it difficult to adapt with the Chinese conditions and hence Linda needs to be made aware of the social setups in China before sending her to China. Learning about the customers of China, their business deals and the timing of such deals will help Linda immensely while at work in China. In America, quiet often business deals are discussed during dinner. But same thing may not be a practice in China. Knowledge about all such customs amy be helpful to Linda for her success in her mission. Foreign assignment 9 Contexting “Low-context countries such as America, Germany and Switzerland do not place much emphasis on developing relationships.  We have dinner and sign contracts.  Mid-level to High level countries, such as France, England, Latin American Asian and Arabic countries may place a high emphasis on developing relationships.” (Calendar) “Contexting is the amount of information transmitted and the amount of information stored.” (The cultural variables for development of models of culture) If the employee (Linda) is able to share more of her knowledge and experience with her Chinese counterparts then her mission will be easy. Written instructions may be less significant if the manager was able to convey their views properly to the subordinates. Because of the cultural and educational differences between the Americans and the Chinese, contexting may be less in conversations between them. Members of same culture can have a big amount of contexting because of their large awareness between each other. If Linda can raise her level of conexting with the Chinese people, then she will be more effective in her assignment. So the HR manager should device strategies for raising her potential contexting abilities through training. Authority Authority is defined as the shared beliefs about the power or influence of an organization or an individual representing that organization. Power is an element of authority deals only with substantive action while leadership deals with the meaning of Foreign assignment 10 the action involved. (The cultural variables for development of models of culture) Authority and power are related to each other. Authority and power are the two sides of the same coin. Authority is established through power only. Leadership definitely needs power to execute their functions. The Americans are more authoritative and their leadership styles are extremely different from that of the Chinese. In business communications, the American may utilize their power and leadership traits effectively. The Chinese may not be much interested in an American domination at their work places. So Linda needs to adapt with such situations and hence her training must focus on the authority aspects in a Chinese context also. Nonverbal Behavior Non verbal communication is often expressed through gestures and body languages. It is easy to express dissatisfaction through some of the facial expressions. Sometimes nonverbal behaviors or gestures may be more effective than a hot exchange of words. Our gestures, facial expressions and body language can communicate so many things to the people to whom we are dealing with In LESCANT, nonverbal communication is the exchange of information through nonlinguistic signs. About 65% of a message is communicated through nonverbal communication. (The cultural variables for development of models of culture) The appearance, eye contacts, a warm handshake or a hug has lot of meaning in a business communication process in America. The Chinese customs may be different. So Linda should have the knowledge of the nonverbal behaviors of the Chinese people. For instance, in China there is Foreign assignment 11 bowing to one another to convey the mutual respects. In India, saying “Namaste” with both hands is a custom. Linda must know all these Asian customs to establish a good relationship with the Chinese people and the possible other people from the Asian region at the work place. Time Concept “Monochronic Nations which include US, Great Britain, Germany, Canada, New Zealand, Australia, the Netherlands, Norway and Sweden, “Time is everything”.  Polychronic nations which are the rest of the world believe building a relationship is as important as closing the deal.” (Calendar) In American system of business time is considered as the most important thing whereas in Asian culture, relationships are considered to be the most important thing in a business. Most of the conventional management strategies have been redefined in Asian countries based on the relationship building. For example, earlier most of the marketing principles were aimed at capturing the business rather than anything else in Asian countries. But as per the scientific management principles at present, marketing is done through relationship building. In LESCANT model, temporal conception is a cultural variable related to Monochronic time (M-time) and Polychronic time (P-time). M-time is characterized by one thing at a time while P-time means several things happening at the same time. P-time put more emphasize on human relationship rather than a task or job alone. Also P- time concentrate more on long term relationship. Chinese are known to be polychromic Foreign assignment 12 in their dealings while monochronic in their approaches. Linda must be trained properly to have awareness about these differences between the Chinese and the Americans and she should be able to adapt with such situations. The following table shows the differences between monochromic and polychromic cultures (The cultural variables for development of models of culture) Foreign assignment 13 Other essential requirements for an overseas assignment Support to family So far we have discussed about the training required for Linda to make her well equipped for her Chinese assignment. But apart from developing such qualities in Linda, the HR manager needs to look into other matters also. The HR manager should ensure the well being of Linda along with her family in China. Linda may be successful in her operations only if she is able to concentrate on her jobs. In order to concentrate on her assignments she should not have any worries about her family and for that purpose it is important for the HR manager to ensure that her family is also with her in China and they also feel comfortable during their stay in China. If Linda’s husband is employed in America, the HR manager must reimburse the amount required for her husband to execute his job functions even if he is in China. If he is unemployed and searching for jobs, the HR manger must find ways to accommodate him as well in some ways in Linda’s assignment in China. Accommodation and Food The American system of life and food habits may be different from that of the Chinese system. The shelter requirements for the Americans and the Chinese may be different. The HR manager should find out comfortable shelter for Linda and her family while they at work in China. The HR manager should help Linda and her husband to shift the essential commodities from America to China for their future use at China. The Foreign assignment 14 HR manager must do the needful as far as the charges related to the electricity consumption, telephone or internet usage or any other services Linda may have used in China. She should not be tied up with paying bills while she was at work in China and hence the HR manager must find some ways to pay all her bills by some other means. The internet facilities must be essential for Linda while she was in China since through internet she can keep in touch with her society and relatives in America which will make her much more comfortable. The Chinese have some terrific food habits which the American may not be able to digest. “Chinese hardly waste any section of the animal and have found ways to cook nearly every part. Chinese culture believes that "yi xing bu xing," which means by using any shape or part of the animal the same part of the human body can be replenished and strengthened” (Lin, 2000) Americans may not accept such doctrines. Linda must be aware of the Chinese eating habits and also the HR manager should be able to locate some American restaurants for Linda for her food requirements. Motivation “Evolving into a successful international person is painful because it involves radical change. But as a result, people generally become stronger and more compassionate human beings. They also gain great leadership qualities: self-awareness, an increased ability to cope with change, and real motivation for learning. People change like this when they have to. It is as simple and difficult as that” (Coping Foreign assignment 15 with an overseas assignment, 2000)The HR manager must find out some ways to motivate Linda for her overseas assignment. She should be made aware of her potential career growth if she accepts this offer and succeeds in it. She must be made aware of the importance of overseas assignments in career growth especially in the modern trends of globalization in which most of the big MNCs expands their operations to other countries. The knowledge about different cultures and labor forces must make a person capable of taking big challenges in his/her profession and the HR manager must make Linda aware of all such things. Linda and her husband must be offered different roles, once they finished their mission in China and comes back to America. These roles must be well suited to exercise their newly acquired experiences in a fruitful manner. They should not feel any fatigue after returning to their home country. Recommendations for HR manager In order to provide better training for Linda in her proposed assignment in China the HR manager must consider the following things 1. First of all the HR manager must evaluate Linda’s willingness and attitude in accepting the overseas assignment. 2. The HR manager must analyze possible advantages and disadvantages if he decided to post her in China. Based on this analysis if he found more Foreign assignment 16 3. advantages compared to disadvantages, he must prepare Linda for her proposed assignment if she is ready to accept the offer. 4. The training must be divided into separate sessions in which every aspect of the possible challenges in China must be dealt in detail based on the LESCANT approach for an overseas assignment. 5. The general living standards s including for her and for her husband must be arranged in China prior to her arrival at China. 6. The HR manager must ensure American style food and shelter to Linda and her husband in China 7. He must ensure the availability of a guide in China for assisting her in initial house setup and office setup matters. This guide must have good knowledge in both the languages, English and the Chinese and also he must have a good idea about the Chinese people and the custom. 8. The HR manager must be in constant touch with Linda even after she arrives at Chins to enquire about any problems for Linda there and he should help her in solving the initial problems which were not anticipated initially. 9. The HR manager must ensure that Linda was able to execute her missions successfully in China. 10. After the completion of her assignment, the HR manger must devise proper rehabilitation plan for Linda in her parent organization Foreign assignment 17 Recommendations for employee (Linda) Be aware that your U.S.-based practices might not work elsewhere especially in China. You may disagree with their views, but arguing moral principles will not endear yourself to the locals. Never say "no" to a project or assignment. Working overseas requires a "rubbery" mind. You face constant challenges at work and at home. Flexibility is required. It also is important for your spouse to adapt to the new surroundings. You can work all day at the office doing the most challenging work of your life, but your spouse could be at home alone and bored. In some hardship countries, the spouses (and kids) minds have to be more elastic than yours. The hardest part of an expat assignment, barring the first month after arrival, is the first month after the departure home. The longer you are away from the home office, the easier it is for them to forget you. As such, you could face a terrible time securing a good position back home when your international assignment ends. The key to successful repatriation is maintaining close contact with company headquarters. If you have high-level supporters at the company headquarters who value you and your new skills, your chances of having a challenging job on arrival should increase (Landing an expatriate HR assignment, 2004) Foreign assignment 18 Conclusion Overseas assignments are a part of profession in most of the big organizations because of their thirst for expansion to other countries. In most of the developed countries the activities of the MNCs were saturated and they have no space for expansion there and hence they were exploring the possibilities in overseas countries. The HR manager is responsible for identifying professionals for overseas assignments. He must ensure that the right person is there at the right place in the overseas projects. He must ensure the readiness of the employee for overseas assignments. If the employee is not willing to accept to overseas assignment, the HR manager must try to motivate him/her for the overseas project if he really feels that the particular employee is essential for the success of the project. Once the employee accepts the offer, the HR manager formulates strategies for giving training to him/her regarding the anticipated challenges in the target country. This training must give the employee a better insight towards his mission and also the possible challenges in the target country. The training must provide the possible solutions also for the anticipated problems. The HR manger must ensure the comfortable stay of the employee at the target country. He must arrange or assist the employee in finding out proper shelter and foods in the target country. He must be ready to help the employee any time when he/she was on the overseas assignment. The HR manager must ensure that the employee is functioning in the right track at the foreign country in order to achieve the objectives of Foreign assignment 19 his/her deputation. Once the employee returns after completing the project or assignment, the HR manager must ensure proper placement for the employee in the parent organization based on his/her newly achieved expertise. The success of an employee’s overseas assignment lies in how well he/she trained and equipped for meeting the overseas challenges. Foreign assignment 20 References 1. Phatak Arvind V. , Habib Mohammed M. (1996), The dynamics of international business negotiations, Retrieved on March, 3 2009 from 2. The cultural variables for development of models of culture, Retrieved on March, 3, 2009 from 3. Ji Shaobin (2002), English as a Global Language in China, Retrieved on March, 3, 2009 from 4. Geert Hofstede, Cultural Dimensions Retrieved on March, 3, 2009 from 5. Calendar, October meeting, Retrieved on March, 3, 2009 from 6. Siu, N. Y. & Darby, R. (1999) A Study of Management Development Practices in a Foreign Joint Venture in China, Retrieved on March, 3, 2009 from Foreign assignment 21 7. Lin Kathy, (2000) Chinese Food Cultural Profile Retrieved on March, 3, 2009 from 8. Coping with an overseas assignment, (2000), Retrieved on March, 3, 2009 from 9. Landing an expatriate HR assignment, (2004), Retrieved on March, 3, 2009 from Read More