Response to Classmates Discussions
kingstonman41
BUS638Week5-DiscussionForum2.docxBUS 638 Week 5 - Discussion Forum 2
Guided Response: Respond to at least two of your classmates by commenting on their posts with constructive comments that move the conversation forward. Though two replies are the basic expectation for class discussions, for deeper engagement and learning, you are encouraged to provide responses to additional students and to respond to any comments or questions from other students. In addition, responding to the instructor’s questions or comments is mandatory. Continuing to engage with peers and the instructor will further the conversation and provide you with opportunities to demonstrate your content expertise, critical thinking, and real-world experiences with the discussion topics. If you share additional resources, please follow APA format guidelines to cite the resources.
100 – 200 Word
Marc Anthony Reynoso
YesterdayOct 22 at 9:03pm
Hi class,
When considering the pros and cons of HCN's knowledge of the local culture and business practices, and locals are fluent in the language and can manage workers using local resources, which are strong pros. A con may be that individuals in the HCN don't consider international dynamics when viewing day-to-day operations. It is vital for companies to be diverse and have an open mind. On the contrary, pros for onboarding TNCs and PCNs, include diversity among individuals and thoughts and best practices. Cons for onboarding TNCs and PCNs, include the pool of people with necessary job skills, could be limited, and they may not understand the company's values or common practices (O'Donnell, n.d). To mitigate the risks of hiring the wrong individuals, it is vital to strategize because picking the wrong individuals will negatively affect the company. It is essential to cast a narrow net as this allows for more direct and effective individuals. Casting a wider net gives one a broader applicant pool. And more choices are always better than fewer (O'Donnell, n.d). Another strategy to practice is using technology to narrow down the pool of candidates. Using an applicant tracking system casts a wide net to bring in applicants by driving traffic directly to your posting, and it screens for the top candidates immediately (O'Donnell, n.d). Regarding the compensation systems in China, it is important to incorporate a compensation package and bonus offers. Employers can appreciate their hard work by bonuses, either at a fixed interval, distributed monthly, quarterly, and annually. Hence, their expected frequency should be stated in the employee's contract (Shen, 2018). It is common practice in China to act 'accordingly' when considering laying off or reducing pay. Acting 'accordingly' means one should not just fire or reduce someone's wages in China and expect to walk away unscathed. Yang states, In a termination setting, one needs to negotiate a deal with the employee where the money is paid, and in return, there is a signed agreement (Yang, 2020).
-Marc Anthony
References:
Stevenson, M. (2017, January 29). The Pros and Cons of Hiring Locals over Expats. HR Exchange Network. https://www.hrexchangenetwork.com/hr-talent-management/articles/the-pros-and-cons-of-hiring-locals-over-expats (Links to an external site.).
O'Donnell, R. 7 Common Hiring Mistakes (and How to Avoid Them). Recruiterbox Blog. https://recruiterbox.com/blog/7-common-hiring-mistakes-and-how-to-avoid-them (Links to an external site.).
Shen, J. (2018, June 15). How to Structure a Compensation Package in China. FDI China. https://www.fdichina.com/blog/china-employer-of-record/how-to-structure-a-compensation-package-in-china/ (Links to an external site.).
Yang, G. (2020, August 5). China Employee Layoffs and Salary Reductions: An Admittedly Warped View. China Law Blog. https://www.chinalawblog.com/2020/08/china-reductions-in-force-a-warped-view.html (Links to an external site.).
Michelle Buckley
YesterdayOct 22 at 7:59pm
As part of the international HR Team faced with hiring a transition team and permanent positions in Shanghai, China there are several considerations to take into account. The Division Head would like to take a geocentric approach which Peng (2017) defines as a method to find the most suitable managers, regardless of nationality. These leaders can be host country nationals (HCNs) or expatriates who can either be parent-country nationals (PCNs) or third-country nationals (TCNs). HCNs are advantageous because language and cultural barriers do not exist however, communication and coordination with headquarters can be impeded. PCNs have the advantage of having close cooperation with headquarters however, these positions are more costly because the company usually covers additional living expenses in a foreign country. And TCNs have the advantage of being a neutral new connection between headquarters and the host country, but this could impede relationships with other employees and the host country’s government (Peng, 2017).
To reduce the likelihood of expatriates (PCNs and TCHs) returning early, not meeting their objectives, or otherwise failing, multinational companies (MNCs) should take care of the selection processes. The person should have a strong command of the local language, be adaptable to local culture, have strong emotional intelligence, have a positive outlook, and have previous international experience. In addition, the family of the expatriate must also be supportive of the decision to move internationally.
Currently, compensation systems in Shanghai, China are much less incentive and merit-based than those in the United States. Peng (2017) states, “collectivistic Chinese managers would prefer more equal compensation when compared with their individualistic US counterparts” (Peng, 2017, p. 496). With this information, a hiring manager might lean towards hiring more HCNs for cost savings. However, “China and Shanghai in particular, currently has a huge undersupply of talent particularly among mid to senior-level positions in both domestic and MNCs” (Lee, 2013, para. 1). With the geocentric approach this MNC is taking, the best fit for the role should be chosen.
When it comes to the practice of downsizing or reducing costs, companies must decide whether to lay-off employees or implement pay cuts across the board. The current pandemic has made this a very real scenario for many companies. According to Cho (2020), many companies in China in a variety of industries are negotiating with employees to implement pay and benefit cuts rather than having to lay off employees. Creating a hiring and human resource management process for an expanding MNC is complex and decisions should be considered from many angles.
References
Cho, Y. (2020, March 14). Wage cuts begin in China as coronavirus weakens companies. NikkeiAsia. https://asia.nikkei.com/Economy/Wage-cuts-begin-in-China-as-coronavirus-weakens-companies (Links to an external site.)
Lee, A. (2013, December 16). How do salary levels compare to the cost of living in Shanghai? Quora. https://www.quora.com/How-do-salary-levels-compare-to-the-cost-of-living-in-Shanghai (Links to an external site.)
Peng, M. W. (2017). Global business (4th ed.). Retrieved from https://redshelf.com/ (Links to an external site.)
