Assignment on global human resources management

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Reference no: EM13784905

Introduction
The multinational firm in which I am HR director is called Real International Boutique, Inc. or for short RIB. The organization is a US based boutique with thirty retail store in the northeast is of the US,and are looking to expand retail locations globally to Italy. My goal as HR director will see to it that RIB hires three business developers as expatriates to implement, launch and open ten new retail stores and establish global markets in Italy, with anfive year project deadline. My paper will include four to six components that the pre-departure training will need to cover and a rationale for the use of using the training components in question, the proposalof three criteria that management will use to assess the performance of expatriates working abroad. In addition, an implemented proposal, along with examples of the fundamental ways in which these performance requirements have improved performance is included.
The recommendation of a recruiting and selection strategies that I believe the firm should use when offering international assignments with rationale are addressed. The international assignment paper will also cover the comparison and contrast of two staffing alternatives for foreign operations at RIB. The selection of the staffing alternative that I believe to be the best fit and analyzing the importance of providing a high-quality mentoring system for international assignees are outlined. Lastly, generation of an example, of a high-quality mentoring system for international assignees to support my analysis and suggestionof the manner in which I plan to measure return on investment (ROI) for international assignments.
Components of Pre-Departure Training
Given the primary selection criterion for most MNEs is technical ability of existing employee, it is not surprising to find that most of the literature on expatriate training is devoted to expatriate departure training activates that are mainly concerned with developing cultural awareness. There for once an employee has been selected for expatriate position, pre-departure training is consider to be the next critical step in attempting to ensure the expatriate's effectiveness and success abroad, particularly where the destination country is considered culturally tough. Effective cultural training, its advocate, assists individuals to adjust more rapidly to the new culture. The limited, predominately US-based, research into this area reveals that a large number of US multinational s have been reluctant to provide even a basic level of pre-departure training, though this is now changing. Particular inters in the area began with Tung's study on expatriation practices, including the use of pre-departure training programs.
Her results showed that US multinationals tend to use training programs for expatriates less frequently than European and Japanese firms (32 per cent compared to 69 per cent and 57 per cent, respectively). The US attitude to the provision of pre-departure training appeared to persist through the 19080s. For example, a 1984 study of one thousand US multi-nations found that only 25 percent offered extensive pre-departure training programs; while a 1989 study of US firms found that only 13 percent of respondents indicated that they would offer expatriates and pre-departure program. Among the various reason cited by firms in these studies was that top management did not believe pre-departure training was necessary of effective So, while the potential benefits of cultural awareness training are widely acknowledge, such training was downgraded or not offered by a large number of US multinational. (Dowling/Festing/Engle, Introduction, 2013, pp. 176-178)

RIB will need the following four pre-departure training within the affective approach:

• Area or cultural briefings

• Lectures, movies or books

• Use of interpreters

• ‘Survival- level' language training

As HR manager, it is determined that the expected level of integration is low and the degree of similarity between the expatriate's home culture and the host culture is high, the length of training will be less than a week to provide the appropriate level of training rigor.(Dowling/Festing/Engle, Introduction, 2013, p. 179)
Performance of Expatriates
The three criteria that management will use to assess the performance of expatriates of RIB working abroad are as follows:
Language and Culture Proficiency

• Global assignments often serve thepurpose of developing expatriates' global orientations through the developmentof their foreign language skills and cross-cultural knowledge (Black, Gregersen,& Mendenhall, 1992; Dinges, 1983; Finney & Von Glinow, 1988). Language and cultural proficiency because it enables the expatriate to become batter able to communicate during a global assignment. An example can include the fact thatthe expatriate will have the ability to effectively communicate with counter partners during the global assignment, therefore improving performance
Establishing Good Relationships with Host Nationals

• In order to facilitate the global integration goal of MNEs, expatriates need to developgood rapport or interpersonal relationships with customers, suppliers,colleagues, host country government officials, ' members of the hostcommunity, and so on (Abe & Wiseman, 1983; Black, Gregersen &Mendenhall, 1992; Cui & van den Berg, 1991). An example can include the fact that the expatriate will have the ability to promote business relationships during the global assignment with negotiating business contracts in Italy for RIB therefore improving performance
Fostering Commitment to the Organization in the Subsidiary

• Many expatriates are expected to be organizational "missionaries" of the companies'goals, objectives, values, and so on, in the foreign subsidiaries to integrate thecorporate culture worldwide (Kobrin, 1988). An example can include the fact that the expatriate will have the ability to cater to the needs of RIB and conducting business while remaining loyal to the organization at all times during the global assignment while in Italy.
Selection Strategy
Growth in Global companies today demands the increasing need of recruitment and selection process. The number of expatriates has increased over the last 30 years due to increase in the number of mergers and acquisitions. Recruiting an expatriate is mostly associated with increase in the salary range, improvement in hierarchal levels. But the facts that there will be drastic change in the culture change in social life, career risks, are all very important aspects to consider when planning a recruitment process in an organization.
The role of a HR manager is to enable individuals to achieve organizational goals and objectives. To ensure a successful gain, they need to know who these people are, where they are from, how they can be developed for personal fulfillment and to achieve organizational goals, and the impact of external constraints. All these come together and demand the need of formulation of HR functions in an organization.
They are involved in the development and implementation of HR strategies and policies and various people management activities like human resource planning, talent management, knowledge management, recruitment & selection, learning and development, reward management, employee relations, health and safety, welfare and any other matters related to employment relationship. Ulrich (1998) pints out that: ‘The activities of HR appear to be and often are disconnected from the real work of the organization.' He believes that HR ‘should not be defined by what is does but by what it delivers'.
It is often a face there are a limited number of employees willing to travel within the organization. Considering other specifications like their past work experience, technical skills, ability to be flexible with teams, job requirements and period of expatriation as well. In many cases, Human resources team tends to select a candidate who is willing to take the overseas opportunity. Lack of effective selection process and emphasized technical requirements listed out are the major reasons for failure in the process.
To handle successful HR operations an organization need to consider both internal and external contexts that has great influence on the business. External contexts could be including Political, Economic & Social & Technological contexts. However many organizations today operation in a global context, that direct HR managers to develop an international strategy considering the cultures and values.
One of the key concerns that often lead to failure in recruiting an employee in cross cultural context is related to family concerns. According to Tung (1987) and Forster (2000) the inability of the spouse in adopting foreign environment and language issues are the general causes of a failed expatriate.
Bonache & Brewster (2001) illustrated the survey conducted by Windham International and the National Foreign Trade Council (1999) is mentioned that a large number of international assignments are turned down in between the time due to personal family and spouse issues.
It is also important to understand that a successful domestic operation with well framed policies and procedures leads to improvement in handling international operations. Companies need to show strong need for a proper recruitment and selection processes.RIB will adopt the following recruitment and selection strategy for expatriates.
Job analysis

• Job analysis is often referred as the information on which two significant recruitment documents are based: job and person specifications. It involves in collecting systematic information about the job from current incumbents and/or their colleagues (Newell and Shackleton, 2000).
Job Descriptions

• A well written job description plays a very important in a cross-cultural context. They are understood as written statement that describes the duties, responsibilities, required qualifications, and reporting relationships of a particular job. Job Descriptions are the further steps of Job Analysis and allows the organizations to perform better.
Person Specification

• Crafting person's specifications gives the HR team a chance to understand on what the organization really need from the job. Most often employers rush to hire person to fill in the position but misses to find the need.
Profile of expatriate's qualification

• According to Harrison there are certain traits and characteristics that are identified as predictors for expatriate assignment successful. It is not that without these traits are guaranteed to achieve successful expatriation but without them the chances of failure is higher.(RECRUITMENT & SELECTION OF INTERNAL MOTIVATED EMPLOYEEE, 2014)
Staffing Alternatives for Foreign Operations

There are four approaches that MNE can use for international staffing and are as follows:

• The first approach is Ethnocentric. In this approach, few foreign subsidiaries have decision making authority. Key positions held by headquarter personnel and are manage by staff in home country HCN.

• The second approach is Polycentric. In this approach, each subsidiary is a distinct entity with some decision-making authority. Subsidiaries are managed by location nationals.

• The third approach is Geocentric. This approach recognizes that each subsidiary makes a unique contribution to the whole. It is accompanied by worldwide integrated business practices, where ability is favored over nationality.

• The fourth approach is Regiocentric. This approach is similar to the geocentric approach with differences of using a wider pool of managers but in a limited way. Staffing may move outside the country, but to outside their region.
As HR director of a RIB the staffing alternative I adopt with staffing a subsidiary in Italy would bethePolycentric approach. My rationale includes that fact that employing HCN's eliminates language barriers, and RIB can avoid the time and expenses of relocating employees. Examples of successful implementation of this approach are that the subsidiary can embrace cultural awareness training programs. In addition, HCN's are also less expensive and with continuity in management of foreign subsidiaries and the turnover rate is low.
The manner in which organization can locate qualified candidates when operating MNE's would be to conduct evaluations and assessments to assure a fit from RIB candidate pool. This can include an assessment of their personality and or cultural awareness. It will be important for the organization to determine how well candidates will be able to deal with change and uncertainty. (Strayer University Blackboard, 2014)
Mentoring Program
Mentoring is on strategy used in repatriation programs to help keep the expatriate in the loop. Mentors are usually a senior person from the sending work unit and one that knows the expatriate personally. The assistants I alleviating the sense of "out of sight, out of mind" that can occur while in an overseas assignment. The information flow between the mentor and expatriate is a two-way street as the expatriate can share the information regarding foreign location and the mentor can share change of personnel and company policy and structure.
A Mentor relationship is a managed tool that is used for:

• First, maintaining contact with the expatriate throughout the assignment.

• Second, ensuring expatriates are kept up to date with developments in the home country.

• Lastly, ensuring expatriates are retained in existing management development programs.

An addition benefit of mentoring is the mentor can alert the firm of the imminent return of the repatriate and thus affects the re-entry position. (Strayer University Blackboard, 2014)

(ROI) Return on Investment

A global assignment can be one of the most powerful ways of impacting the perspective and development of employees. It can also be a significant corporate investment; therefore, the need to assure an assignment's return on investment (ROI) is essential for Multinational Companies (MNCs). However, despite the economic environment of cost cutting and risk mitigation, an assignment's ROI is not always calculated and used as a tool to assess expatriate costs among global firms. Defining Assignment ROIMcNulty and Tharenou (2004) have defined expatriate ROI as "a calculation in which the financial and nonfinancial benefits to the firm are compared with the financial and nonfinancial costs of the international assignment, as appropriate to the assignment's purpose."
As HR director, I will lead RIB in the direction of measuring and calculating an assignment's ROI through the following:

• Understand the intent of the assignment, i.e. how the purpose of an international assignment is linked to RIB's overall global strategy;

• Include both tangibles and intangibles when calculating and comparing costs and benefits.
A one-size-fits-all ROI equation does not exist, but there are some concrete factors which can lead to a more accurate ROI calculation and positive impact on return:

• Accurate assignment cost tracking

• A competitive, cost-effective policy as a road map for tracking costs

• A policy that not only fits RIB's mobility needs, but is consistently implemented across the organization(SIRVA, 2014)

Conclusion
The methods outlined in this paper will allow me to become more of a strategic with RIB. The organization is a successful US based fashion apparel company with thirty retail store in the northeast is of the US, and is looking to expand retail locations globally to Italy. My goal as HR director will see to it that RIB hires three business developers as expatriates to implement, launch and open ten new retail stores and establish global markets in Italy, with anfive year project deadline.

 

Reference no: EM13784905

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