Assignment 8 - Grant

Strategic Human Resources Management

Week #8 Lecture 1

Global Expansion

Global expansion is a term used by many companies; however, there are many factors that must be considered before a company chooses to operate overseas. Economic, market, social, and political conditions will certainly play a significant role in any decision to go abroad (Mello, 2015)

Culture plays an important role in globalization, and because of many differences, it is important for business to consider the risks. There are many businesses operating overseas; however, a lot of research was conducted prior to engaging. The role of the Human Resource office is to determine what kinds of training should take place prior to hiring someone to work in a foreign country. Local training should take place prior to moving overseas, and one of the major trainings should be culture sensitivity. This should focus on the customs, values, beliefs, and practices. When cultures come together in organizational settings, special consideration must be paid to managing processes such as power dynamics and relationships; norms of participation and decision making; and performance management and compensation systems (Mello, 2015).

There is a lot of diversity in other countries because of the types of positions that are available, and are attracting employees who want to expand their knowledge globally. Prior to deciding whether or not to apply for or accept a position in a foreign country, it is best to speak with the HR office to find out what types of benefits and compensations are offered. Some businesses offer relocation and living expenses, bonuses, vacation travel expenses, pay and benefits. This may sound like a great opportunity, but keep in mind that there are a lot of cultural differences and dynamics when working in a foreign country. Prior to accepting the position, make sure it is something you are willing to do, and that the location is suitable for family to accompany. Check with the local universities or online for classes to learn the basic language so that you do not feel out of place; in other words, try to blend in with the culture. Some countries may use a different wattage for appliances, so make sure you conduct your research prior to going. The HR office should have an orientation packet to inform employees of what to expect when moving to a foreign country, and the information should be specific to the country in which the position is located.

Approaches to sending employees abroad

Administrative approach

Assisting employee destined for international assignment with paperwork & minor logistics: Paperwork can include passport application, switching health insurance location, background check, local school information, housing list, computer and internet access

·       Tactical approach

Managing “risk or failure” factor of overseas assignment by providing paperwork assistance & modest amount of training: cultural awareness training, local customs, language

·       Strategic approach

Extensive support & coordination of international assignment & strategized repatriation program at end of assignment: Local liaison office, assigning a sponsor, length of assignment or possible extension

 

The Human Resources office is there to ensure the vacancies that need to be filled meet the organization’s goal, and puts the right people in the right jobs. There are some strategies associated with managing global assignments.

·       Establish a specific purpose for assignment – Be clear on the goal of the assignment, and what is expected of the employee

·       Select appropriate employee for assignment – Make sure the employee is qualified for the position, he/she is willing to relocate

·       Organizational and individual purposes for assignment must be identified and matched – The job description should explain the purpose of the assignment, along with the duties the employee is expected to perform. The individual should be knowledgeable of the assignment, has experience in performing the duties.

·       Assess adaptability to host culture of both employee & any family members who will be accompanying employee – The organization should orientate the employee and his/her family members on the culture of the country, and expected behavior

·       Provide appropriate training for employee & family members – Classes should be provided to the employee, and the employee should be assigned a sponsor to assist with the relocation and getting the family settled in

·       Simultaneous training should be conducted for headquarters staff – The HR office should also conduct training for staff at the headquarters because the employee will be communicating with them about daily business

Moving to a foreign country can be exciting; however, prior to the assignment ending, employees should be prepared to return, and work closely with their HR office. Repatriation of returning employees is probably the most neglected function in international HR, yet it is the one that has the greatest impact on the return on investment made in employees sent abroad. Retention rates in the first year back can be as low as 50%. Organizations that fail to develop career management programs that allow those returning from abroad to share their knowledge and insight (rather than leave the organization and potentially share that knowledge with competitors) have a negative return on investment (Mello, 2015) References

·       Mello, J. (2015). Strategic Human Resources Management (4th edition). South-Western, Cengage Learning