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qmigsd-day_6_ihrm_elective_1.pdf
International HRM Day 6 – The Dark Side of International Employment
Thursday 23rd February 2017
Paul Hunter Email: [email protected]
Day 5 Recap
The need for change, the key drivers of change and why change can fail.
People’s resistance to change – understanding the change curve.
HR’s role as the ‘Change Advisor’ and the questions HR need to
investigate and manage.
Importance of Knowledge Management explicit and tacit
knowledge.
Benefits of knowledge sharing in MNCs, both internal and from
external sources.
The Dark Side of International Employment
The Dark Side of International Employment
The growth in migrant labour in both western and developing economies is becoming a hot topic within IHRM.
The ‘dark side’ refers to the exploitation and ill-treatment of
employees, particularly migrant workers which is evident across the world.
It is suggested the exploitation mainly occurs in low-skill jobs
i.e. agriculture, construction, care and manufacturing.
There are a number of similarities in the challenges facing
migrant labour and the managers and HR managers employing them.
Immigration & Economic Migration Over the past 10 years we have witnessed large movement of people –
which has impacted on population growth in developed countries.
China provided 1 in 10 immigrants to developed countries in 2006. Poland 1 in 20 immigrants.
In Europe in 2009, there were 31 million migrants living and working in Europe. (The Economist, 2014)
The largest recent migration, within a country, occurred in China. Millions
of workers from poorer regions within China moved to prosperous cities to take up low-skills jobs. (Scheinson, 2009).
Immigrants often earn less than ‘local’ workers and it is suggested that this
has pressured managers into utilising illegal immigrants. In effect the ‘dark side of international employment’.
Case Study 14.1 UK's New Europeans UK's New Europeans (Crawley et al, 2015)
According to Sumption and Somerville (201O) 'UK's New Europeans', this group of East European
immigrants is unlike previous groups who have settled in Britain, for a number of reasons. They receive
low wages, are employed in unskilled occupations despite having high levels of education,and often have
precarious housing arrangements. They lack support networks and they are vulnerable to exploitation.
Compared with the UK population they are relatively young and receive lower wages than their
counterparts, despite being more highly qualified. Unlike previous groups of migrants who have come
from further away. these migrants appear to make 'circular' visits to the UK and may be employed on
short, seasonal contracts. There is considerable uncertainty about the duration of their stay. Statisics
show that the number of immigrants tends o increase in the summer when there is seasonal work
in agriculture and tourism. In terms of finding work, these immigrants have had to rely on their
own social networks (partly because of poor English skills) and often depend on specific
agencies for finding employment, which has determined where they have found work.
Research by Eade et al. (2006} suggests that the these new immigrants are a heterogeneous group in
terms of immigration strategy and intentions; some of whom come to work for short periods of two to
six months, such as students; others stay longer, perhaps o earn income for a project at home; others
are ambitious and wish to progress, so come with the intention to stay; while others come with an
open mind, willing to look for career opportunities in either country, the largest group.
This group of immigrants may be disadvantaged by utilizing private agencies to search for work.
Agency work in the UK is often temporary and agencies are typically used by low-skill industries in
which there is little opportunity for upward mobility. While agency work does allow the
opportunity to change jobs, it does not improve the long-term prospects of a much better job.
These workers are often exploited by employers or agents who fail to pay wages, fail to pay the
minimum wage, or make disproportionate deductions for housing (Sumption and Somerville,
201O}. However, these immigrants have reportedly integrated successfully into the UK job
market but into low-skill jobs.Adapted from : Sumption and Somerville (2010)
Are There Benefits?
The Global Commission on International Migration (GCIM) suggested that:
‘immigration fills gaps in the labour market and brings social
and cultural developments to the societies they live in……..also helping the economy of countries they have left behind’
(GCIM, 2005:23)
‘The brain drain can help poor countries since the prospect of
migration spurs people in poor countries to acquire marketable skills’
(Goldin et al, 2011)
Public Discomfort
The presence of large number of migrant workers is causing social unrest in some countries, with claims that:
• Wages are reduced;
• Foreign workers given preference for jobs;
• Job opportunities are denied for local staff.
Dilemma for governments and organisations exist as a result of this.
Fears
Macdonald (2009), who reviewed the reality of rights when business operates beyond the borders, examined the salary levels and working conditions among Bangladeshi garment workers and found that there was:
• A general lack of representation of the workers;
• No opportunity to protest;
• Poor working conditions;
• Fear of losing their jobs.
Workers Exploitation – News Review
Worker exploitation is evident across the world: Some students may find some scenes distressing.
• Migrant workers exploited in German meat industry
https://www.youtube.com/watch?v=RrNtRaa_nWI
• Exploited Migrant Workers in Asia
https://www.youtube.com/watch?v=48xZG0nqXY4
• Apple accused of failing to protect workers in China
https://www.youtube.com/watch?v=kSvT02q4h40
Case Study 14.2 Care workers in the UK Care Workers in the UK (Crawley et al,2015)
Recent research by Oxfam has revealed 'clear indications of the exploitation of workers by
gangmasters in the care, hospitality, arid construction sectors'. As a result, further calls have been
made for the protection of workers, particularly of workers from overseas, in social care, who
according to Oxfam are being similarly exploited (Poinasamy with Fooks, 2009).
As the population of Western Europe ages, increasing numbers of carers will be required for the
elderly in care homes or in their own homes. According to Poinasamy with Fooks (2009), there are
already 1.5 million workers in the adult social care workforce in the UK. Much of this work has been
privatized by local authorities to private care agencies. The jobs of care workers are associated with
low pay and low status, so that it is difficult to attract UK workers. As a result, nearly one-fifth of
workers in this sector are migrants, recruited by gangmasters and agencies.The research indicates that
these care workers experienced significant abuse and exploitation at work. According to Poinasamy
with Fooks {2009:2),the experience of care workers typically involves:
excessive hours, extreme pressure to work overtime, an expectation that the worker will be constantly
on call, spurious deductions take from pay for petrol and other expenses, and non-payment of
holiday and sick pay-all whilst workers are being paid no more than the minimum wage.
These findings are supported by Kelayaan,which also researched the treatment of migrant workers in
domestic care (Gordolan and Lalani, 2009: 8). This research found that migrant domestic workers:
frequently suffer from abuse (sexual, physical, and emotional), discrimination, low pay (or none).
exceptionally long working hours, social isolation. and men al health problems arising from the
extreme conditions of their employment. Many experience very poor working conditions, such as
having to sleep on floors and not being provided with bedrooms, and being given no time off. sick
pay or access to healthcare.
The exploitation of migrant workers in care homes has often come about as a result of 'collusion
between overseas recruitment agencies and contract and training agencies in the UK and the care
home' (Poinasamy with Fooks, 2009: 6).
The principal violations of employment rights included coercion and intimidation, excessive hours
and pressure to work overtime, problems with wages, denial of holidays or sick pay, accommodation
issues, contract and self-employment problems, and deception regarding the terms of rec uitment.
The Migrant Labour Discussion
OECD (2009) states that governments and organisations need to develop a policy to protect migrant workers as globalisation has driven the need for low-skilled labour across the world.
Governments favour and develop policy for high-skilled workers
but not low-skills workers.
It is suggested that the ‘recent’ recession saw governments do
little to adjust immigration policies therefore illegal immigration took place to fill low skill occupations and sectorial jobs facing shortages.
Expatriate v Migrant Worker
There are a number of differences between expatriate and migrant workers:
• Migrant workers do not have the security of a job at
assignment end.
• Receive little benefits based on their employment contract, i.e.
accommodation, terms & conditions.
• Seen to fill a role, no consideration of adjustment to culture.
• Little chance of long term move to the country.
• Family rarely permitted to the country.
IHRM and Migrant Workers
In IHRM literature, to date, there is little discussion on migrant workers.
Suggested reason given ‘Expatriate workers are clearly the
responsibility of the organisation HQ whilst migrant workers, at the local or subsidiary site are generally of local concern, left to be managed by local HR managers’ (Crawley et al, 2015:331).
Evidence suggests that there maybe racist attitudes to migrant
workers. (Sumption and Somerville, 2010).
Therefore there is a need for IHRM to be aware and ensure
malpractice is not followed.
IHRM and Migrant Workers
The role and responsibility of multinationals is being closely scrutinised.
Recently new bodies have been setup to monitor workers
practices, i.e the Fair Labor Association (FLA), Gangmasters Licensing Authority (GLA) and establishment of the Codes of Conduct.
More HR monitoring of the activities of multinational is
imperative to ensure an humane approach is operating in their global subsidiaries.
IHRM cannot continue to ignore the management of ALL
international employees. (Crawley et al, 2015)
Course Review
IHRM, Setting the Scene
IHRM Academic Models, Theories and Debates
The Cultural Approach
Global Staffing International Assignments
Managing Change & Knowledge
Dark Side of International Employment
Assignment Review
Assignment Question (subject to external examiner approval)
Answer 1 question only
1. Critically evaluate the staffing policies that multinational corporations (MNCs) may deploy. Illustrate your answer with examples.
2. Critically evaluate the challenges HR executives face managing change across international boundaries. Illustrate your answer with examples. (2500 words).
Deadline for submission is Friday 17th March at 12pm.
Assignment Question 1
Critically evaluate the staffing policies that multinational corporations (MNCs) may deploy. Illustrate your answer with
examples.
Some suggestions • Reflect upon, and evaluate, the choices MNCs face. Should they train and
develop local staff? Send expatriates overseas to participate in long-term assignments? Send flexpatriates overseas to participate in short-term assignments? What challenges and difficulties might these options present? How might they be overcome?
• Consider the context – level of countries’ talent availability. Skills shortages. Political, economic and socio-cultural environment. Industry sector. Are you tailoring products and services to meet local consumers’ needs?
Assignment Question 2
Critically evaluate the challenges HR executives face managing change across international boundaries.
Illustrate your answer with examples.
Some suggestions • What does change mean at the organizational and individual level? What
are the challenges faced? How might HR tackle these difficulties?
• What opportunities does change potentially generate? How will HR encourage and harness these opportunities?
• How should change be managed in different cultures? How might HR manage change in a constructive and sensitive manner? Should change be standardized throughout all business units? Or should local contexts mediate change initiatives?
Assignment Structure Example
Introduction • Explain your topic area, give a background to the theories to date,
with references.
• Explain the content/discussion which will appear the main body of your assignment
Assignment Structure Example
Main body • Structure your paragraphs around themes identified from the
literature. Compare, contrast and evaluate researchers’ competing viewpoints.
• What suggested controversies are apparent?
• Why is this the case?
• What does research say about how your topic area could be improved? What implications does this have?
• Ensure that you give depth to points raised and give examples, not just discuss briefly what a source stated. Remember ‘why’ & ‘how’.
Assignment Structure Example
Conclusion • What are the implications of your analysis? What are the key
issues that you have discovered?
• What are the limitations with your analysis? What important issues do you believe you have been unable to tackle?
• What recommendations can you offer practitioners and researchers?
Assignment – General Points
• Ensure you undertake adequate research.
• Review the articles on Moodle – check the references they have used as a pointer for you to develop your research further!
• Buy the core text book!
• Look back at the slides!
• Consider layout, use of fonts.
• Reference correctly.
• Print on one side of the paper only.
Assignment Tips
• Ensure you reference all facts in your assignment.
• Use up to date literature.
• Explain and define terminologies used.
• Develop a focus, do not try and cover too many areas as this can impact on your analysis.
• Ensure logical flow.
• Be creative!
Thank You
