HRM Practical Assessment

1. Describe what is a Multinational Enterprise (MNE) and Transnational and the difference between these types of enterprises.

Ghoshal and Bartlett (1998) conducted research on a number of companies operating in various ways on an international basis, including HRM dissertation help. They designated companies as international, multinational or global. Multinational enterprises (MNEs) have foreign direct investments (Daniels et al., 2013) with some authors stating that the firm has to have a certain number of foreign direct investments before it is classified a MNE. For example, Shim et al. (2013) state that a multinational corporation is a firm that operates in two or more counties. Multinational companies or enterprises, according to Ghoshal and Bartlett (1998), have fairly independent operations in a number of countries where they are permitted to establish their own approach, usually responding to local requirements in terms of, for example, customer needs.

Ghoshal and Bartlett then introduce the concept of the transnational company, which they describe not as an existing type of company but rather as an ideal towards which companies need to strive in order to survive in an evermore complex and competitive environment. The transnational company combines the strengths found separately in international, multinational and global companies. The transnational company needs to recognise instances when centralised or decentralised decision-making is necessary and swiftly adopt the necessary approach. It must be able to distinguish when a global solution is feasible and when to develop localised products, services and strategies. In other words, the transnational company utilises the competencies and strategies of the three other types of company and reacts flexibly as circumstances change.

The main difference between multinational and transnational enterprises is that multinational enterprises have a centralized management system which cannot be seen in transnational enterprise. However, both multinational and transnational companies have foreign affiliates and operate around the world.

2. Describe the key differences between International Human Resource Management (IHRM) and Human Resource Management (HRM).

Certainly, IHRM is related to a firm’s response to the internationalisation of business. According to Crawley et al. (2013, p. 5), International Human Resource Management is about ‘understanding, researching, applying and revising all human resource activities in their internal and external contexts as they impact the processes of managing human resources in organisations throughout the global environment to enhance the experience of multiple stakeholders’.

Human Resource Management according to Beer HRM involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources. HRM is a distinctive approach to employment management, which seek to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce using an array of cultural, structural and personnel techniques Bratton and Gold, 2017). This approach to HRM has 3 interrelated analytical themes. The first is a concern with the “what” and “why” of HRM – with understanding management and employee behaviour in different contexts and with explaining motives. The second theme is a concern with the “how” of HRM, that is, the process by which is it carried out. The third theme is concerned with questions of “for whom and how well”, that is, with assessing the outcomes of HRM. The third characteristic in particular implies a critical purpose and helps us to rediscover one of the prime objectives of the social sciences – that of asking tough questions about power and inequality.

IHRM shares many similarities with domestic HRM in that the core functions of recruitment, selection, employee learning and development, diversity and equality and remuneration are present in both. However, IHRM operates on a larger scale, has more complex strategic considerations, more complex coordination and control demands, as well as some additional HR functions (Sparrow et al., 2004). In an international context, the firm needs to recruit, select, develop and retain a workforce that can help it compete globally (Briscoe et al., 2012).

Administration of international assignments

There are many ways in which the international human resource (IHR) specialist might function. For instance, an IHR manager might be involved in visiting branches or units overseas to establish systems or to deal with issues that have arisen. In this instance, the HR manager is likely to be seen as representative of the company and the importance of general business awareness becomes enhanced. A larger number of HR practitioners are, however, more likely to become involved in organising arrangements for other international managers on an assignment overseas and it is to this that we now wish to turn our attention.

The IHR specialist will be involved in various ways with recruitment and selection, reward and development of employees on international assignments. This involvement may include the development of policy on HR functions, the provision of advice and guidance to line management or operational involvement in processes such as training and development. In addition, IHR specialists often become involved in managing the more personal arrangements necessary for a successful international assignment.

3. Outline the four different staffing approaches for international assignments, including a brief definition of each.

The international assignment

In the current era of global business, international assignments are a key component of human resource management (Syed and Jenkins, 2017). As businesses become increasingly global, organisations are sending more of their employees on international assignments. At the same time, there is an expectation that employees are more mobile and culturally aware (Syed and Jenkins, 2017). It is usually senior or middle managers and technical experts who spend periods of time overseas, but other personnel may be involved, especially in project work. The anticipated time spent overseas is crucial to the expatriate experience (Sparrow et al., 2016). International assignments vary in nature but the CIPD (2016) has identified three types:

a business trip of less than 31 days’ duration for a single trip

a short-term assignment of more than 31 days, but less than 12 months

a long-term assignment of two years or more.

As you can see from the above, the three types do not cover an international assignment that is between 12 months and less than two years (an oversight perhaps?). This may be considered a mid-term assignment, based on the conceptualisation offered by the CIPD (2016).

The term ‘expatriate’ is used frequently when discussing international assignments. Peng and Meyer (2011, p. 8) define an expatriate assignment as ‘a temporary job abroad with a multinational company’. Ahlstrom and Bruton (2010) state that an expatriate is an individual from one country who works and resides in another country, yet there is no notion of time frame in this definition. Initially, expatriates were differentiated into two distinct groups: those sponsored by companies and those taking the initiative outside the corporate context, although the boundaries between these groups have become increasingly blurred (Doherty et al., 2013).

There is much discussion and debate about what an expatriate is. However, it is certainly the case that expatriates are expensive, but they do play a crucial role in many organisations (Brewster et al., 2014). Each level of posting brings with it different requirements of the employee and calls for a different level of support from the parent organisation.

Recruitment and selection

Two major questions that arise in recruiting and selecting personnel for overseas assignments are as follows:

What are the key competencies related to success in overseas assignments?

What recruitment and selection methods can the employer use to identify whether a candidate has the necessary competencies to undertake a successful international assignment?

What do you think?

Before moving on to the next section, list the competencies needed for succeeding in an 18-month international assignment to India. How would you determine if a candidate has the necessary competencies to successfully undertake such an assignment? What selection methods would you use to determine the suitability of the candidate?

Much research on the first of these questions has focused on whether there is a distinctive ‘international’ competence. A high level of technical competence will, invariably, be required as the person on an international assignment may be away from the usual organisational or domestic professional support system for some time. In relation to the second question, Howse (2015) has identified a number of questions that an employer should attempt to answer when recruiting and selecting an international assignee. These are:

Does the employee have the right professional and technical skills?

Where is the employee’s home country?

What international experience does the employee have?

Can the employee speak the language of the host country?

What contribution is the employee likely to make to the international assignment?

Will the employee be able to adapt to the new environment?

Does the employee have the required communication and team-working skills?

What effect will the international assignment have on the employee’s career?

A number of recruitment methods may be used to attract candidates for international assignments. These include internal promotion, headhunting, cross-national advertising, international graduate programmes and local recruitment (CIPD, 2013; 2016). There are three commonly used selection methods for assessing the suitability of candidates for an international assignment. These include interviews, assessment centres and psychological testing (CIPD, 2013; 2016).

Potočnik et al. (2014) propose a holistic four-stage process model for recruiting and selecting international employees. In stage 1, the competencies of the HR managers who will be responsible for the international recruitment and selection will be determined. In stage 2, international recruitment takes place of parent-country nationals (PCNs), host-country nationals (HCNs) and third country nationals (TCNs). In stage 3, international selection will take place, taking into account the person’s capacity for cultural adjustment, family situation, linguistic ability, international experience, personality traits, knowledge, skills and competencies and the person–organisation fit. In stage 4, the international recruitment and selection process is evaluated to determine the extent to which it was successful.

According to Syed and Jenkins (2017), a number of factors will need to be considered in selecting expatriates for an international assignment. These include the organisation’s strategic goals, the technical competencies required for the job, the personal traits or relational abilities required for the job, the nature of the assignment, the expatriate’s ability to cope with a different culture, the expatriate’s family situation and legal issues pertaining to the host country.

Management development

As globalisation has become increasingly significant, so career progression increasingly depends on the ability and willingness of individuals to work overseas. International assignments have, themselves, come to be regarded as a method of providing career development opportunities to ambitious employees (Fenby, 2000; Crowley-Henry, 2012). While spending time working overseas, the parent/home country national can increase their knowledge of worldwide business operations, develop greater intercultural sensitivity, perhaps learn a foreign language and ‘see the world’.

Companies are also looking more and more to develop and utilise the talents of host country nationals (Mahajan and Silva, 2012). This could be made part of the remit of the parent country national on overseas assignment, but there is also the possibility of developing host country nationals by offering them assignments in parent country locations. These employees, called ‘inpatriates’, may help the firm to fill skills shortages at headquarters or help to develop a global mindset for such employees (Peng and Meyer, 2011). Harvey et al. (2000) highlight an innovative approach towards developing not only managers but global business in general by bringing host and third country nationals into the home country organisation, both to facilitate their contribution to strategic planning and for their own development.

Reward management

Although international assignments can be seen as development opportunities and therefore rewarding in themselves, they can also be challenging in terms of isolation from familiar surroundings and support systems and have additional costs related to housing, health care, transportation and other items. Employees should be compensated for the additional effort, resilience and talent they bring to overseas postings and for the dedication and sacrifice they, and their family, bring to the job (Shaffer et al. 2013).

In determining the reward package for international assignments, there are two main approaches: the home-based and host-based (Menhennet, 2015). With the home-based approach, the employee’s home-based reward package is enhanced through assignment-related allowances whereas, with the host-based approach, the reward package is based on the international assignment location (Menhennet, 2015).

Dealing with compensation for international assignments is not easy and the HR manager needs to balance the need to control costs with the need to deliver an attractive reward package to the individual. McEvoy and Buller (2013) interviewed international human resource managers in seven large American multinational corporations and these managers frequently cited compensation and benefit issues as among the most difficult of challenges they face.

The cost of an international assignment will be affected by the cost of living in the country, or city, where the expatriate is based. Each year, Mercer, the global consulting firm, produces a survey of the cost of living in different cities. The 2018 cost of living rankings revealed that the 10 most expensive cities for expatriates are:

Hong Kong (SAR China), Tokyo (Japan), Zurich (Switzerland), Singapore, Seoul (South Korea), Luanda (Angola), Shanghai (China), Ndjamena (Chad), Beijing (China), Bern (Switzerland)

4.Outline the advantages of Regiocentrism. Including a brief definition.

A regiocentric approach means that a company seeks to exploit opportunities at the regional (for example, the EU) level (Yip and Hult, 2012). Regiocentrism means that the best person for any job at any level would be selected from within a wider geographical region. Geocentric organisations try to distance themselves from any one national culture (Plakhotnik et al., 2014) and such organisations will select personnel from anywhere in the world.

Regiocentric and geocentric approaches encourage greater workforce diversity, but this then needs to be effectively managed in order to gain the maximum benefits. Management of diversity would involve intercultural awareness, which is discussed in greater detail in the following sections.

The Regiocentric Approach is an international recruitment method wherein the managers are selected from different countries lying within the geographic region of business.

Advantages of Regiocentric Approach

1. Culture fit, i.e. the managers from the same region as that of the host country may not encounter any problem with respect to the culture and the language followed there.

2. Less cost is incurred in hiring the natives of the host country.

3. The managers work well in all the neighboring countries within the geographic region of the business.

4. The nationals of host country can better influence the decision of managers at headquarters with respect to the entire region.

The rationale behind the Regiocentric Approach is that the person belonging to the same region as that of the host country is well versed in the language and the culture that prevails there and would better understand the problems that arise in the market, as compared to the foreign counterparts.

5. Outline the disadvantages of Polycentrism. Including a brief definition.

A polycentric approach places emphasis on the norms and practices of the host country where the firm operates (Peng and Meyer, 2011). A multinational enterprise that utilises such an approach will treat each international subsidiary as a separate national entity (Ahlstrom and Bruton, 2010). Polycentrism implies that people from the host country would be chosen to occupy managerial as well as operational positions. A polycentric approach also does not encourage the benefits of diversity as the emphasis is on local knowledge, expertise and culture. Definition: The Polycentric Approach is the international recruitment method wherein the HR recruits the personnel for the international businesses. Polycentric Approach Definition: The Polycentric Approach is the international recruitment method wherein the HR recruits the personnel for the international businesses. In Polycentric Approach, the nationals of the host country are recruited for the managerial positions to carry out the operations of the subsidiary company. The rationale behind this approach is that the locals of the host country know their culture better and can run the business more efficiently as compared to their foreign counterparts.

Disadvantages of Polycentric Approach

1. Lack of coordination between the host and the parent company, due to the absence of a link that gets created when expatriates from the parent country hold the managerial positions at the subsidiary.

2. The lack of effective communication between the staff members of both the host and the parent company, due to the language barrier.

3. Difficult to exercise control over the subsidiary.

4. Lack of knowledge about the market conditions of the host country.

5. The conflict may arise between the managers of both the host and the parent company due to the different thinking processes.

In this approach, the natives of the host country are chosen to run the operations of the subsidiary and are given the authority to formulate strategies for the business keeping the mission and vision of the subsidiary company in mind. Whereas the parent country nationals hold key positions at the corporate headquarters and scrutinize the operations of the subsidiary from the home office.

6. HRM is significantly affected by formal and informal rules at both home and

overseas, specifically with regards to employment law and practice.

Regarding collective bargaining between the UK and Germany, briefly

outline any main differences.

Knowledge requirements

HRM is significantly affected by formal and informal rules at home and overseas, especially with regards to employment law and practice (Peng and Meyer, 2011). Indeed, every country has its own regulations, rules and laws dealing with employment relations and these will affect how a firm manages its people internationally. Even though the European Union has harmonised many rules, regulations and legislation relating to matters of employment (see Chapter 3), there are many differences among the member states in terms of legislation and employment relations structures and this will, no doubt, continue. For example, collective bargaining coverage in the UK is lower than in many other European countries, while union membership as a share of the workforce is significantly higher in the UK than it is in Germany or France (CIPD, 2015). Another example of differences concerns employee rights. In France, for instance, employers and employees are not allowed to agree to private arbitration of an employment dispute (Howse and Kendrick, 2015).

Again, it should be emphasised that the point being made here is the extent to which there are differences even among European Union countries, where a high level of uniformity might be expected. This highlights the need to be alert to laws and regulations in other countries and regions of the world and the complexity that this entails.

In both Great Britain and Germany, a dramatic decentralisation of collective bargaining – that is, a shift of collective bargaining from the industry-level to the level of the company or plant – has taken place in recent decades, due to increased international competition and employer demands for increasing flexibility. The degree and timing of this process of decentralisation, however, has varied significantly between the two countries: Collective bargaining in Germany had been comparatively centralised, until a process of decentralisation took off at the beginning of the 1990s. The British collective bargaining system, on the other hand, has always been decentralised to a considerable extent. Multi-employer bargaining at industry-level, which set minimum standards, has traditionally been complemented with additional plant-level bargaining between shop stewards and management. However, a further and considerable decentralisation of collective bargaining took place after the election of Margaret Thatcher in 1979. Step by step, almost all central institutions for multi-employer collective bargaining have been smashed. In short: British trade unions have had far more experience than German unions with a decentralised collective bargaining system. Thus, one should expect that British unions have been able to deal with the (further) decentralisation of collective bargaining better than German unions. However, exactly the opposite has happened: British unions are worse of after this process of decentralisation than German unions, judging by bargaining coverage and bargaining outcomes. In 2009, bargaining coverage in Germany was roughly twice as high as inBritain: 62% of German employees had their wages determined by collective bargaining, but only 33% of British employees. Furthermore, German unions have been more successful in pursuing a solidaristic wage policy, i.e. in maintaining low wage differentials within an industry. The question is: Why did the decentralisation of collective bargaining affect unions in Britain and Germany to such different degrees? The explanation has to take into account both external and internal factors, that is, both unions’ political and economic environments, as well as their strategies and structures.

External factors

The main external factors are cyclical and structural changes in the economy, the political environment, and the institutional framework. The latter two factors are particularly important, as variation here is rather large between Britain and Germany, while relevant cyclical and structural changes in the economy have varied far less between Britain and Germany(though structural changes often took place later inGermany). The variances between Britainand Germany exists may seem surprising here, in light of their similar political environments.; in both countries, conservative governments were in power most of the 1980s and 90s. Yet, German neo-liberalism was never as radical as it was in the UKunder Margaret Thatcher. Instead, it aimed for a slow transformation of the German model without questioning its fundamental structures. The resilience of the German model was one of its most remarkable features until the early 1990s. The institutional framework in both countries, too, differs significantly: British capitalism belongs to the Anglo-Saxon model, while German capitalism belongs to the regulated Rhineland-model. Trade Unions are a major institution of those “models of capitalism”, and as such, have arisen in distinct contexts, and form part of a network of interlocking institutions. While I am convinced that institutions do matter, I am equally convinced that a sole focus on institutions (and other external factors) is insufficient for the explanation of the puzzle presented here. Much current analysis in the institutionalist tradition begins from the premise of a well-settled institutional framework. Yet, the notion of a “model“, basing on this institutional framework, downplays diversity and variation within this model, between different sectors, and, in this case, between different unions.

Internal factors

The decentralisation of collective bargaining basically means a delegation of competencies for collective bargaining to union workplace reps. The way they utilise their newly acquired competencies for collective bargaining is crucial for understanding unions’ contrasting fortunes following the decentralisation of collective bargaining. There is one crucial difference between collective bargaining conducted at central level by full-time officers employed by the union, and decentral bargaining a the workplace, conducted by lay (i.e. unpaid) union workplace reps: as opposed to full-time officers, lay union workplace reps at the plant level have two loyalties, one towards their company, including the workforce they are representing, and one towards their trade union, its aims and policies. In a decentralised bargaining system without a rigid framework, loyalty to the company increasingly outweighs commitment to the union. Therefore, bargaining decentralisation has encouraged the active pursuit by management and workplace representatives of the economic well-being of the company over other considerations, and thus has promoted a form of plant-syndicalism (Betriebssyndikalismus) which focuses on the interests of insiders (the employees), in particular in times of recession and high unemployment. The implication of this is that the growing autonomy of union workplace reps challenges the ability of unions to pursue their policies. Trade union officials, even in the strong union IG Metall, perceive this to be a major threat. Similarly, bargaining decentralisation, and the resulting shift towards company- or plant-level bargaining, would facilitate the formation of so-called “productivity coalitions”, where co-operation with management and commitment to the firm’s central goals are exchanged for greater job security and participation in strategic decision-making. The degree to which this actually happens is dependent on the link between workplace reps and their union (i.e. union structures outside the plant). If this relationship is a close one, unions are more likely to be able to influence their workplace reps in order to coherent bargaining policies throughout the sector and union policies in general. The more independent workplace representatives are from their unions, the less unions will be able to influence them, and thus to realise their policies. In the case of the west German metalworking industry, works councils were capable and inclined to respect the framework provided by the industry-wide agreement. In this case, the stability was linked to the relatively high membership density of the sector’s union, IG Metall, the high proportion of unionised works councillors, and the predominance of large and medium-sized companies in the metalworking sector. In short: the stability was based on IG Metall’s strength. In British unions representing workers in metalworking industry, in particular Unite and its predecessors, this was not the case to the same degree, for various reasons – in particular, multi unionism (before the establishment of Unite, several large unions, such as T&G and AEEU represented workers in the industry) and weaker central organisation and coordination

7. Outline the importance of understanding national culture. Summarise any key issues that may affect work relationships. Provide an example in your answer.

National culture is the norms, behaviors, beliefs, customs, and values shared by the population of a sovereign nation (e.g., a Chinese or Canadian national culture). It refers to specific characteristics such as language, religion, ethnic and racial identity, cultural history and traditions. One of the best-known models used to demonstrate cultural differences among people from different nations emanates from the work of the Dutch social psychologist, Geert Hofstede (1980, 1997). Hofstede classified nations according to their score on a number of dimensions of culture and these have an effect on how people from the particular nation would behave in work and other situations. In their 2010 book Cultures and Organizations: Software of the Mind, Hofstede et al. (2010) conceptualise six dimensions of culture, these being: power distance, individualism versus collectivism, masculinity–femininity, uncertainty avoidance, long term versus short term and indulgence versus restraint. A description of these dimensions can be found in Table 11.1.

dimensions of culture

Power distance ‘The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally’ (p. 61). Individualism versus collectivism Individualism pertains to societies in which the ties between individuals are loose: everyone is expected to look after him or herself and his or her immediate family’ (p. 92). Collectivism ‘pertains to societies in which people from birth onward are integrated into strong, cohesive in-groups’ (p. 92). Masculinity–femininity A masculine society is where ‘emotional gender roles are clearly distinct: men are supposed to be assertive, tough and focused on material success, whereas women are supposed to be more modest, tender and concerned with the quality of life’ (p. 140). A feminine society is where ‘emotional gender roles overlap: both men and women are supposed to be modest, tender and concerned with the quality of life’ (p. 140). Uncertainty avoidance The extent to which the members of a culture feel threatened by ambiguous or unknown situations’ (p. 191). Long term versus short term A long-term orientation stands for ‘the fostering of virtues oriented toward future rewards, in particular perseverance and thrift’ (p. 239). Short-term orientation stands for ‘the fostering of virtues related to the past and present, in particular respect for tradition, preservation of “face” and fulfilling social obligations’ (p. 239). Indulgence versus restraint ‘Indulgence stands for a tendency to allow relatively free gratification of basic and natural human desires related to enjoying life and having fun. Restraint reflects a conviction that such gratification needs to be curbed and regulated by strict social norms’ (p. 281). Hofstede’s work highlights various issues that may affect work relationships. At the very least, an awareness of cultural differences as potential sources of misunderstanding or conflict provides a basis from which to work towards more effective relationships. For instance, Western approaches towards performance management rely on managers and subordinates being very open with each other in analysing plans for the future. Upward and 360 degree appraisal require constructive criticism of managers by their subordinates. A person from a high-power distance country would probably experience extreme discomfort if asked to do this. In a multicultural society like that in the UK, you are likely to encounter elements of different national cultures, even in the domestic workplace. The benefits of managing diversity have already been mentioned in Chapter 4, but in the international context this becomes even more crucial.

Communication abilities

Although English is considered as the international language of business, for many people English will not be their mother tongue. Therefore, people will have different levels of proficiency. Within the European Union there are 24 official languages and to gain adequate proficiency in these languages is a daunting, if not impossible, task. Learning a few phrases in a particular language to be able to greet a foreign visitor or host, however, might be regarded at least as a basic courtesy. Sensitivity to potential problems when communicating in English and the ability to adapt one’s use of language in communicating with a non-native speaker are regarded as a basic intercultural competence. In developing intercultural competence, Forster (2000) emphasises the value of intercultural briefings supported by induction in the new workplace, mentoring and a long handover period, and notes the potential contribution of these processes to the success of foreign postings. Research by Kaufmann et al. (2014) in tailoring cross-cultural competence training concluded that individuals need to have high levels of emotional intelligence (EI), good communication styles and specific character traits in order to have intercultural competence.

WHY IS CULTURE IMPORTANT?

Culture is a strong part of people's lives. It influences their views, their values, their humor, their hopes, their loyalties, and their worries and fears. So when you are working with people and building relationships with them, it helps to have some perspective and understanding of their cultures. But as we explore culture, it's also important to remember how much we have in common. People see the world very differently, but they know what it is like to wake up in the morning and look forward to the adventures that of the day. We are all human beings. We all love deeply, want to learn, have hopes and dreams, and have experienced pain and fear. At the same time, we can't pretend our cultures and differences don't matter. We can't gloss over differences and pretend they don't exist, wishing we could all be alike, and we can't pretend that discrimination doesn't exist. This chapter will give you practical information about how to understand culture, establish relationships with people from cultures different from your own, act as an ally against racism and other forms of discrimination, create organizations in which diverse groups can work together, overcome internalized oppression, and build strong and diverse communities. This section is an introduction to understanding culture, and will focus on: What culture is The importance of understanding culture in community building Envisioning your cultural community How to get started in building communities that encourage diversity. But first, it is important to remember that everyone has an important viewpoint and role to play when is comes to culture. You don't have to be an expert to build relationships with people different from yourself; you don't have to have a degree to learn to become sensitive to cultural issues; and you don't have to be a social worker to know how culture has affected your life. WHY IS UNDERSTANDING CULTURE IMPORTANT IF WE ARE COMMUNITY BUILDERS? The world is becoming increasingly diverse and includes people of many religions, languages, economic groups, and other cultural groups. It is becoming clear that in order to build communities that are successful at improving conditions and resolving problems, we need to understand and appreciate many cultures, establish relationships with people from cultures other than our own, and build strong alliances with different cultural groups. Additionally, we need to bring non-mainstream groups into the center of civic activity. Why?

In order to build communities that are powerful enough to attain significant change, we need large numbers of people working together. If cultural groups join forces, they will be more effective in reaching common goals, than if each group operates in isolation.

Each cultural groups has unique strengths and perspectives that the larger community can benefit from. We need a wide range of ideas, customs, and wisdom to solve problems and enrich community life. Bringing non-mainstream groups into the center of civic activity can provide fresh perspectives and shed new light on tough problems.

Understanding cultures will help us overcome and prevent racial and ethnic divisions. Racial and ethnic divisions result in misunderstandings, loss of opportunities, and sometimes violence. Racial and ethnic conflicts drain communities of financial and human resources; they distract cultural groups from resolving the key issues they have in common.

People from different cultures have to be included in decision-making processes in order for programs or policies to be effective. The people affected by a decision have to be involved in formulating solutions--it's a basic democratic principle. Without the input and support of all the groups involved, decision-making, implementation, and follow through are much less likely to occur.

An appreciation of cultural diversity goes hand-in-hand with a just and equitable society. For example, research has shown that when students' cultures are understood and appreciated by teachers, the students do better in school. Students feel more accepted, they feel part of the school community, they work harder to achieve, and they are more successful in school.

If we do not learn about the influences that cultural groups have had on our mainstream history and culture, we are all missing out on an accurate view of our society and our communities.

As you think about diversity, it may be helpful to envision the kind of cultural community you want to build. In order to set some goals related to building relationships between cultures, resolving differences, or building a diverse coalition, it helps to have a vision of the kind of cultural community you hope for.

8. Outline the key factors when recruiting and selecting an international assignee.

The international assignment

In the current era of global business, international assignments are a key component of human resource management (Syed and Jenkins, 2017). As businesses become increasingly global, organisations are sending more of their employees on international assignments. At the same time, there is an expectation that employees are more mobile and culturally aware (Syed and Jenkins, 2017). It is usually senior or middle managers and technical experts who spend periods of time overseas, but other personnel may be involved, especially in project work. The anticipated time spent overseas is crucial to the expatriate experience (Sparrow et al., 2016). International assignments vary in nature but the CIPD (2016) has identified three types: a business trip of less than 31 days’ duration for a single trip a short-term assignment of more than 31 days, but less than 12 months a long-term assignment of two years or more.

Recruitment and selection

Two major questions that arise in recruiting and selecting personnel for overseas assignments are as follows: What are the key competencies related to success in overseas assignments? What recruitment and selection methods can the employer use to identify whether a candidate has the necessary competencies to undertake a successful international assignment? Much research on the first of these questions has focused on whether there is a distinctive ‘international’ competence. A high level of technical competence will, invariably, be required as the person on an international assignment may be away from the usual organisational or domestic professional support system for some time. In relation to the second question, Howse (2015) has identified a number of questions that an employer should attempt to answer when recruiting and selecting an international assignee. These are: Does the employee have the right professional and technical skills? Where is the employee’s home country? What international experience does the employee have? Can the employee speak the language of the host country? What contribution is the employee likely to make to the international assignment? Will the employee be able to adapt to the new environment? Does the employee have the required communication and team-working skills? What effect will the international assignment have on the employee’s career? A number of recruitment methods may be used to attract candidates for international assignments. These include internal promotion, headhunting, cross-national advertising, international graduate programmes and local recruitment (CIPD, 2013; 2016). There are three commonly used selection methods for assessing the suitability of candidates for an international assignment. These include interviews, assessment centres and psychological testing (CIPD, 2013; 2016). Potočnik et al. (2014) propose a holistic four-stage process model for recruiting and selecting international employees. In stage 1, the competencies of the HR managers who will be responsible for the international recruitment and selection will be determined. In stage 2, international recruitment takes place of parent-country nationals (PCNs), host-country nationals (HCNs) and third country nationals (TCNs). In stage 3, international selection will take place, taking into account the person’s capacity for cultural adjustment, family situation, linguistic ability, international experience, personality traits, knowledge, skills and competencies and the person–organisation fit. In stage 4, the international recruitment and selection process is evaluated to determine the extent to which it was successful. According to Syed and Jenkins (2017), a number of factors will need to be considered in selecting expatriates for an international assignment. These include the organisation’s strategic goals, the technical competencies required for the job, the personal traits or relational abilities required for the job, the nature of the assignment, the expatriate’s ability to cope with a different culture, the expatriate’s family situation and legal issues pertaining to the host country.

Edstrum A. and Galbraith J. (1997) explain the reasons why organisations engage in International assignments. They believe that the following three reasons are the key factors:

To fill a position ( also to take into consideration that this can be for the purpose to train managers who can gradually take up more advanced posts with the parent organisation or at subsidiary abroad)

Management development – by giving the managers an international experience and training them for future important tasks in subsidiaries abroad or with the parent organisation. This kind of transfer often takes place when qualified host country national are available.

Organisational Development (the idea is that managers become less ethnocentric once they come into contact with a variety of culture. It is assumed that the large-scale transfer of managers of different nationalities between the parent organisation and its subsidiaries abroad will create international communication networks)

Recruitment and selection is the foundation of all other HR activity. Get it wrong ... you are always making up for that one bad decision. (CIPD, 2008 Online) The rapid expansion of blurred labour markets means that HR managers need to adapt rapidly to cope with increasingly complex demands. Skills shortages in the home-grown market mean that certain sectors are looking outside the UK to fill posts. Other international companies are looking to scale up very rapidly overseas, to shift resources and develop talent in unknown markets. as a result in selecting assignees for alternative forms of international assignments, MNCs should be aware of the limitations associated with more traditional forms of international assignments and should work toward more complicated recruitment and selection techniques. (Collins D.G. et al., 2007) Certain international standards in regards to performance, supervisory controls, job specifications, organisational culture, human capital, etc need to be taken into account. There are various issues needed to be considered in the recruitment and selection process in global aspect. Among them are:

The culture of the home/host country

Immigration statues (Limited visas provided)

Security Check- CRB (Criminal records Bureau)

The validity of the qualifications and skills of the applicant – what the degree really mean? How to assess it?

Health and safety legislation – safety responsibility in the host country, particularly when deploying to work in areas with militia conflicts.

Minimum Wage Limit , depending on the age of the worker ( Parliamentary Papers, 1998 – National Minimum Wage, 2008 - online)

Language skills and abilities ( particularly in selection process, if devising psychometric test)

Validity of applicants former employers (it is easy in the UK)

Conversion Programmes (if needed)

Education of the expatriates’ children

9. Another approach to International assignments is to identify and develop talent of host country nationals. Outline, in brief, your recommendations on key management development initiatives.

International perspectives on learning, training and talent development

While there may be differences in styles of learning, according to Sloman (2007) the issues faced by learning, training and talent development professionals are almost universal. In the CIPD’s (2011) survey of international learning and talent development covering the UK, USA and India, it was shown that in-house development programmes were seen to be the most effective method in all three countries. Coaching by line managers was viewed as the most effective intervention by more than half of UK practitioners, but was ranked lower for US and Indian practitioners. On-the-job training was the third most effective measure in UK and Indian responses. The CIPD’s (2012) international survey on learning, talent and innovation in Asia found that almost three quarters of organisations in the sample were engaged in talent activities, with a higher proportion in China and South Korea and less in Singapore and Malaysia. More than half of the respondents from the Asia region felt that their organisation’s talent management activities were effective, but the key challenges identified by respondents were a lack of people resources and high staff turnover. Howse and Ash (2015) argue that multinational organisations should develop a global approach to training and development, implementing a standardised approach across all or some of the countries in which the firm employs staff. Also, Howse and Ash state that it may be helpful if the organisation provides employees with training on cultural differences between the countries where it is based, to ensure that staff in different countries can communicate well and work effectively together. In his 2016 article on the role of moving employees to create competitive edge, Brynne Herbert, the CEO of MOVE Guides, a leading relocation management company, states that an organisation’s ability to move talent is ‘good business’ and facilitated talent management is one of the most important new aspects of HRM. Herbert acknowledges the complexity of moving talented employees and further comments that many companies do not know the costs associated with global workforce mobility. He concludes his article by saying that companies that move the fastest and are the most strategically focused will have competitive advantage.

Host-Country National

The advantage, of hiring a host-country national can be an important consideration when designing the staffing strategy. First, it is less costly in both moving expenses and training to hire a local person. Some of the less obvious expenses, however, may be the fact that a host-country national may be more productive from the start, as he or she does not have many of the cultural challenges associated with an overseas assignment. The host-country national already knows the culture and laws, for example. In Russia, 42 percent of respondents in an expatriate survey said that companies operating there are starting to replace expatriates with local specialists. In fact, many of the respondents want the Russian government to limit the number of expatriates working for a company to 10 percent1. When globalization first occurred, it was more likely that expatriates would be sent to host countries, but in 2011, many global companies are comfortable that the skills, knowledge, and abilities of managers exist in the countries in which they operate, making the hiring of a host-country national a favorable choice. Also important are the connections the host-country nationals may have. For example, Shiv Argawal, CEO of ABC Consultants in India, says, “An Indian CEO helps influence policy and regulations in the host country, and this is the factor that would make a global company consider hiring local talent as opposed to foreign talent” (Rajagorpal, 2011).

10. Following an oversees assignment a returning employee can offer considerable insights and knowledge of host country to head office and management. Outline your proposal and recommendations on what policies and procedures should be in place for the return of expatriate employees.

International companies need to consider what their responsibilities are in sending employees to potentially dangerous places and to develop relevant policies and procedures, communications and training systems. The consultancy firm KPMG, for example, uses the risk assessment company Control Risks and an international security organisation, International SOS, to monitor dangers and provide briefings for staff, helping KPMG to decide whether travel to the country should take place and, if it does, what precautions the firm should take to ensure the security of its staff (Personnel Today, 2010). In July 2018, International SOS and KPMG LLP signed an agreement to enable the two organisations to work together to help clients streamline their travel risk management processes (www.internationalsos.com). In assessing the potential risk associated with sending an employee abroad, it is important to consult up-to-date information from the UK Government (advice on visiting 225 countries and territories is available at www.gov.uk). Having examined issues concerning international assignments, the concluding section to this chapter will discuss key issues in international HRM in relation to learning, training and talent development; high-performance working systems; work/life balance and diversity and quality. It is not possible to provide a comprehensive discussion of these issues in an introductory text or to examine in detail these issues for a large number of countries and organisations. The intention is to provide you with a flavour of key issues regarding international HRM from around the world.

What Is an Expatriate Employee?

An expatriate employee is someone who has moved to live and work on an assignment in a foreign country. Expatriate workers are often highly skilled and may work independently or on the orders of their companies. Many employers decide to send their workers abroad to tackle issues that only they know how, but this can bring various challenges

Expatriate employees: payroll, administration and tax compliance

With the immediate focus on operational issues, no one has had the time to give some thought to the cross-border tax and human resource issues associated with the deployment of personnel into the host jurisdiction. Without careful oversight of the situation, the company and its employees may be exposed to significant corporate payroll, corporate tax and individual tax liabilities and penalties. The tax implications may also adversely affect the company’s business reputation, internally and externally. It is in the company’s best interest to manage these issues but internal resources and time constraints may prevent the appropriate attention to these matters at the outset. With tax authorities focusing on increased compliance, it is important for organizations to develop systems and procedures to manage, as best they can, the payroll, transfer pricing, and corporate and individual income tax implications of the cross-border activities.

Employee relocation policies

The development of an employee relocation policy and cross-border payroll and tax procedures should be put in place as soon as reasonably possible. A proper policy document will minimize exposures for tax and payroll for the organization and provide essential guidance to employees. No one likes surprises including employees who may have a significant tax liability to fund on their host country tax return. While most companies will assist with the funding of such liabilities, the policy can provide guidance on tax settlement process matters to help minimize collection issues.

Traveling employees

For employees who travel extensively, they will be exposed personally to significant tax issues. With some advance preparation, including an individual tax consultation, the employee will understand the issues and risks they need to manage to minimize unexpected tax liabilities. With the help of an employee international assignment policy, the company can work with the employee to ensure that the foreign assignment is successful both operationally and financially.

Policy checklist

A workplace policy should:

set out the aim of the policy explain why the policy was developed list who the policy applies to set out what is acceptable or unacceptable behaviour set out the consequences of not complying with the policy provide a date when the policy was developed or updated

Policies also need to be reviewed on a regular basis and updated where necessary. For example, if there is a change in equipment or workplace procedures you may need to amend your current policy or develop a new one.

Types of workplace policies

Here are some examples of common workplace policies that could assist your workplace:

code of conduct recruitment policy internet and email policy mobile phone policy non-smoking policy drug and alcohol policy health and safety policy anti-discrimination and harassment policy grievance handling policy discipline and termination policy using social media.

11. International organisations need to consider their responsibilities when sending employees to other countries. Outline any policies and procedures that should be considered by the Board providing analysis on your recommendations.

Why adopt international employment policies? Labour practices have been in the spotlight worldwide because of globalisation and the increase in reputation risk issues associated with multinationals operating in or subcontracting and outsourcing to developing countries. Differences in employment standards and practices between jurisdictions are becoming less sustainable for multinationals with internationally mobile workforces. These employers may face external pressure from their employees or public interest groups (including international trade unions) to eliminate inequalities and provide universal employment standards and practices for all their employees. In some situations, failure to implement fair employment practices may damage the employer's reputation. This is a particular risk for high-profile organisations. For example, human rights and labour organisations have in the past widely criticised Wal-Mart on issues such as its diversity policy and its failure to stamp out substandard working conditions in its global supply chain. In addition to ethical motives, there are a variety of legal, practical and presentational reasons which may lead a multinational to consider adopting international employment policies, including to: Comply with published corporate social responsibility (CSR) standards, to account for its social, economic and environmental impact locally, regionally and internationally. Increase efficiency, as requiring employees to follow the same policies enables the policies to be managed centrally. Ensure transparency and fair treatment for employees. Limit legal liability for global employment risks (for example, a well drafted and effectively implemented policy may provide a defence against discrimination claims). Deal with issues such as corruption or facilitation payments in a consistent fashion and provide for centralised reporting of such issues. How should the policy be implemented? Successful implementation of any international employment policy often depends on the policy's subject and content and the legal requirements of the jurisdictions in which it is to apply. The employer should seek local advice on the optimal method of implementation, including on whether: It is possible to unilaterally impose the policy. The agreement of the employees is required. The policy should or can only be introduced following consultation with: trade unions; work councils; or employee representatives. A policy is more likely to be effective if employee representatives have contributed to it, even where this is not legally required. Organisations may wish to consider how to co-ordinate this process globally. Where should the employment policy be located? This decision on where among the relevant employment documentation to insert an international policy may be influenced by: How important it is to the employer that the employees comply with the policy. Whether the employer needs to retain the ability to make changes to the policy. The sanctions that may result from an employee's breach of the policy (see belowIt may be contained in: The employment contract. The employee handbook. An intranet site. A collective agreement (if appropriate). The size of the organisation and the number of countries in which it operates often influences this decision. If the policy is to apply to employees in a number of jurisdictions, the simplest option may be to publish it on the employer's intranet site so that it is accessible and visible to all employees. This also makes the process for communicating any amendments to the policy in the future more straightforward. The employer should also consider how to integrate the policy with other contractual documents and communicate it to all its employees. It is important to note that if the policy has contractual status (whether expressly or by implication) and the employer subsequently breaches it, the employee may have a legal right of redress for the breach. Alternatively, if the policy needs to remain flexible and have the ability to evolve, employers may prefer that the policy provide principles of conduct or guidelines to the employees which do not have contractual effect. Diversity and equal opportunities Multinationals are increasingly expected to make a positive commitment to diversity and provide genuine equality of opportunity for all employees. Providing differing levels of protection against discrimination across the global workforce could be divisive and create a multi-tier workforce in which some employees benefit from greater employment protection and equality of opportunity based on their country of work. An effective equal opportunities policy could result in commercial advantages such as: Enhanced morale within the workforce. Higher employee retention rates. Enhanced company reputation. As contributions from employees ultimately fuel the success of an organisation, it may be in the long-term interests of multinationals to promote non-discriminatory practices in employment, regardless of the level of protection that the particular statutory framework provides. In jurisdictions such as the US where diversity is a legal requirement this is unlikely to pose a problem for the employer. However, differences in local legislation may hinder the implementation of globally consistent employment policies. The employer must decide whether to accept the divergence in protection or "level-up" standards for all employees to ensure that the same protections apply globally. An important factor to consider is the effect that a diversity and equal opportunities policy will have on the customs and culture of the relevant country. For example, promoting diversity may create social tensions in countries where the local laws prohibit homosexuality or there are long-standing divisions between different cultures

Disciplinary and grievance procedures

There are significant differences in the approach to disciplinary and grievance procedures between jurisdictions. In countries such as the UK the law heavily regulates this area and employers must follow basic minimum procedures in dealing with disciplinary action and employee grievances. In other countries, such as the US, where employment is generally "at will", the employer can terminate the relationship without notice for a lawful reason. Global disciplinary and grievance procedures may not be practical where there is considerable divergence between the local laws in each relevant country, as applying the highest standards in each jurisdiction may result in administrative and procedural difficulties for the employer.

Interaction with local law

Although an employee's rights and protections differ between legal systems, certain common legal principles apply in the majority of jurisdictions. These include: The requirement to have an employment contract in place between the employer and employee. Protections for employees against dismissal. Where there are similarities in employment law, they will help the process of implementing international employment policies. However, notwithstanding the terms of any employment policy, an employee is entitled to the benefit of any mandatory core terms of employment which give greater protection to the employee in the relevant jurisdiction. Therefore, an important part of the process of adopting an international employment policy is to consult with local counsel to ensure legal compliance in each jurisdiction in which the policy operates. Where the differences between legal systems are diverse, an organisation could consider either: Drafting separate policies for each jurisdiction. Introducing broad guidelines or principles for employees which comply with the highest global standard. Providing a global minimum standard that is the fallback position if local law provides a higher degree of protection.

12. One of the main concerns for international organisations regarding equality is the different labour laws that exist in different countries. Briefly outline two key differences and/or similarities between France and UK.

Equality the right of different groups of people to have a similar social position and receive the same treatment:

According to gov.uk When we’re making decisions, the Equality Act 2010 gives us a duty to take into account the need to: eliminate discrimination, harassment and victimisation advance equality of opportunity foster good relations between different parts of the community The Equality Act protects people against discrimination on the grounds of protected characteristics, of which there are 9: age disability gender reassignment marriage and civil partnership pregnancy and maternity race religion or belief sex sexual orientation We are required to consider all individuals in their day to day work, in shaping policy and in providing services. This is in line with the Public Sector Equality Duty (PSED) introduced by the Equality Act 2010.

What to consult about

In the UK, the consultation must relate to the ways of avoiding or reducing the dismissals and mitigating its consequences. The employer should disclose information under s.188(4) of TULR(C)A 1992, including the reasons of redundancies, the numbers and descriptions of the relevant employees, the selection criteria, the method of carrying out the dismissals, the method of calculating the redundancy payments, information relating to the agency workers. In France, the employer must provide similar information i.e. the economic reasons of dismissals, the number of contract terminations expected, the selection criteria and pool for selection, the company headcount, the timetable of dismissals, the economic measures expected after the downsizing, the expected consequences on health, safety and work conditions (articles L. 1233-10 and 1233-31 of the Code of Labour). Specifically, if the employer proposes to dismiss as redundant 10 employees or more: and if the company has fewer than 50 employees, it must also provide information on the measures to avoid or reduce the dismissals; or if the company has 50 employees or more, it should draft a “plan de sauvegarde de l’emploi” which set outs various measures to avoid or to reduce the redundancy dismissals: alternative employments inside or outside the company in the French territory, transfer of undertakings in order to avoid the company closure, creation of new activities, employees’ training, working time reduction (article L.1233-61 and L. 1233-62 of the Code of Labour). Finally, when the company has 50 employees or more in France, the employer should hold an additional consultation on “the measures that might affect the volume and the structure of the workforce” (article L. 2312-8 of the Code of Labour).

How long to consult

In UK law, the consultation period should be 30 days minimum when the employer proposes to make redundant fewer than 100 employees; this period is extended to 45 days minimum when the collective redundancies relate to 100 employees or more. The employer must also notify the Secretary of State for Business. In France, the timetable of the consultation depends on both the company headcount and the number of terminations expected. When the company intends to dismiss less than 10 employees, the employee representatives’ “Comité Social et Economique” must give its final opinion within 1 month from the first round of consultation meetings (article L. 1233-8 of the Code of Labour). When the company considers to dismiss 10 employees or more and if it has less than 50 employees, the employee representatives must hold two consultations meeting separated by 14 days maximum (article L. 1233-29 of the Code of Labour). When the company proposes to dismiss 10 employees or more and if it has 50 employees or more, the consultation period of the “Comité Social et Economique” is : two months if the number of redundancies are less than 100 three months if less than 250 four months above this limit. These periods are increased by the time to negotiate with the trade unions (no limit) plus to consult with the French administration (15 to 21 days) plus to consult individually with the employees when required (five days minimum). Amicus claims: In France, there is a minimum period for consultation before more than 10 workers can be made redundant. In the UK, there is no such law. Gemson: Collective consultation obligations are triggered in the UK when an employer proposes to make 20 or more employees redundant at one establishment within a 90-day period. Pomart: In France, where there is more than one employee and less than 10 affected, obligations to inform and consult the staff representatives also arise. Amicus claims: In France, where more than 50 workers are at risk, the employer has to present a compensation plan to the unions. In the UK, there are no such laws. Gemson: It is not quite as simple as Amicus suggests. Once the obligation to consult is triggered in the UK, the employer must consult ‘with a view to reaching an agreement’ and must include ways of avoiding the redundancies. Pomart: In France, the social compensation plan has to be negotiated rather than just presented to the staff representatives. Amicus claims: There is a notice period of up to five months in France, and just three months in the UK. Gemson: UK employees have a statutory notice of one week for every full year of service. They are entitled to their contractual notice or their statutory notice, whichever is the longer. Pomart: Notice period durations are determined by the collective bargaining agreement provisions in France, and depend on the type of employee. Usually, the notice periods are between one month for blue-collar workers and three months for executives. Amicus claims: In France, detailed information has to be provided to the government, which will ensure the employer has complied with all obligations and applied timetables for termination. In the UK, there are no such laws.

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