Hume and Com are giving emphasised on cost effective as well. Host country nationals (HCN), have been selected on priority basis can be for a number of reasons.
- Language and other barriers are limited
- Hiring cost are reduced
- No need for work permit that ultimately reduce cost of the company.
- Host country nationals (HCN) are better informed about their culture, business environment comparing to foreign managers. Management skill ness is being improved on continuing process, as HCNs stay longer in position.
(Dowling and Welch, 2004)
Performance appraisal is practised but can not be defined in correct way.
The success behind for all multination companies, team work is playing an important role. Multinational team can provide a perfect development opportunity for an organisation’s future leaders. Experience of working on effective global team help the team member to increase their management skillness, make them able for facing the challenges for developing and employing the knowledge and skill that are necessary for leading global organizations (Maznevski and DiStefano, 2000). In the company like Hume and Co, there is hardly any team work practised among the consultants. Young consultants are working individually rather collectively by diverting clients from other colleagues. By ensuring strong support to IT consultants from Human Resource professionals will definitely increase their effectiveness, enhanced their knowledge and skill required for building global team effectiveness (Canney Davison & Ward, 1999). However, other multinational companies can be mentionable who succeed in using global team appropriately. General Motors has used its global teams in its Research & Development (R&D) activities for examining the feasibility of producing global cars. Since globalized Coopers & Lybrand has been using global teams successfully in serving customers, that finally seen rapid growth in production (Jackson & Schuler, 2000: 146) Global leaders have to be experts in learning and adapting their thinking in new paths. Martha L. Maznevski and Joseogh J. DiStefano have identified three key areas where global leaders need to establish their strong efficiency. 1) learning and adapting 2) managing relationships 3) managing ambiguity (2000). In Frankfurt office, Germany the manager used to work in a local company before taking charge of the office. He does not have international managerial experience which is normally required for successfully running company which is looking for expanding its presence globally. In question of managing relationship, the local manager does not have knowledge in corporate culture which means ‘basic assumptions and beliefs held by employees about the enterprise they work for’ (ucs.mun.ca). Lack of expertise in international managerial experience is another hr issue which creates problems in developing brand, not only for the clients but for the staff as well. On going projects is suddenly postponed following consultants quitting the office. Failing to comply close relationship with the Head Quarter, is revealing lack of managerial efficiency of the manager. Besides, having lack ness of knowledge in company policy and strategy regarding globalisation, local staff are deprived of gaining knowledge in company policies. On the basis of case study, Hume & Co. does not posses any definite hr planning that they can enforce in other areas of the world where their business is in operation. Each of the strategic type of firm is required to formulate different types of hr strategy regarding their business structure (Miles and Snow cited by Guest, 1997:264). Companies adopting business strategy and human resource strategy will have superior performance (Guest, 1997).
HR Practice and HR outcome-
Country managers in India and Germany have unlimited power in formulating Human Resource policy such as selection, training and development, rewards and careers.
There is Human Resource department in Head Quarter, which has nominal power in formulating HR policy.
.
Source- Guest (1997)
Employees in the firm like Hume & Co. are highly ambitious about their career management which can be considered another HR issues and dilemma as well. Consultants more mentionable, women consultants in Head Quarter, and consultants working in Germany are more responsible for their own career. Consultants left the job when they can realize moving to other companies will definitely bring career improvement. They are giving great attention to their career of the first category.
Proper recruitment policy is not following all in all areas, where the company has its business activities. Well recognised companies which are moving globally are mainly following internet as a recruitment tool. E-recruitment is on the rise in International companies based in France (Cerdin and Peretti ,2001). But the most common recruitment process is normally the traditional employment interview. Large companies in France, the recruitment process normally requires three interviews, and the final selection is done by the manager, who deals with the new employ’s performance (Cerdin and Peretti, 2000). However, country manager in India of Hume & co. does not follow this procedure. His management style is creating debate. He is recruiting family members as company employee, on the other hand, advocating for sacrificing profit to build market share. If he succeed to in implementing his plan, the bonus payment and the number of days per year will be trim down for the consultants working on Indian based projects. Inspite of these HR issues and dilemma, he is successful in increasing profit turnover.
The activities need to be increased of Hum and Co. considered its working load. Clients are about their service but sometimes due to efficient staff and loads of work, the management in UK, Germany, India, China are facing problem to complete the task on time. In that case the company have to spend extra money for hiring several expensive freelancers.
Q: Does research into national cultures offers a useful means for analysing Hume & Co.’s new operational context? Outline and apply one of the main culturist theories to this case- and discuss any limitations of these approaches.
Answer-
There is no single definition of organisation culture. Basically culture is comprised of distinct observable forms such as language, use of symbols, ceremonies, customs, method of problem solving, use of tools or technology and design of work settings that groups of people create through social interaction which is most relevant to the analysis and evaluation of organization culture(au.af.mil). While Hofstede (1991:5) defines culture as ‘the collective programming of the mind which distinguishes the members of one group or category of people from another’. To him ‘culture is more often an source of conflict than synergy’ (geert-hofstede.com/).
National Cultural Differences-
Culture is differences in nation wise. We hardly find any similarities between one nation’s cultures to another. Difference in national culture has an immense influence on organization in many ways which is broadly seen central to international human resource management (Tony and Rees, Chris 2006:28). Cultural differences also influencing in some other business related issues such as,
- Attitudes in international negotiations
- Outcome of investment
- Trade and ownership within organisation
- Appropriate pay system
- Centralization and hierarchies within organisational structure
- Manager-subordinate relationship.
(Edwards and Rees, 2006: 28)
Hofsede Cultural Dimension-
Dutch Theorist Dr Geert Hofstede has developed perhaps the most comprehensive study regarding how culture influence value in the work place which is known as dimensions of culture. While working for International Business Machines (IBM) Corporation, he was involve in ‘studying a large body of survey data about the value of people in over 50 countries around the world’ (Hofstede, 1991:13). According to Hofstede (1991:13), dimension is the aspect of a culture which has relation to other cultures. He identified the four-dimensional (4-D) model of differences among national culture, latter identify the fifth dimension which are follows
- Power Distance (from small to large0
- Collectivism versus individualism
- Femininity versus masculinity
- Uncertainty avoidance
- Long term orientation versus short term orientation
Application of Hofsede Cultural Dimension in Different Regions-
Effectiveness of Research into national cultures for Hume & Co. new operational context-
Advantage of Research in National Culture-
- By research in National Culture the company are able to utilize their knowledge of culture, products and resources.
- Help evaluating whether culture really have effect in business operations in any particular nation.
- Help to find out the main cultural problems in today’s international marketing as well as the solvents.
- Investigating whether technology can overcome cultural problems.
- Assist the company to extend their business globally.
- Help the company to adopt local culture.
Critical Human Resource Issues in New Operational Context for Hume & Co.-
HR issues in Asia have become more sophisticated over the last few years. Many countries are revising their labor laws in order to protect employees and also to bring their regulations to international standards. For example, China recently passed a bill providing on-the-job injury insurance to workers. In the past, China did not have any laws governing worker health coverage in the event of an on-the-job injury. Authorities are also encouraging greater education and training of employees in order to develop more advanced human resources. In Thailand, the government is currently providing tax deductions for employee training and education costs; encouraging companies to invest in the intellectual and skills development of their employees.
As Hume & Co. are planning for going globally, especially planning to open their business operation in Singapore, Hong Kong and Shanghai in China, USA and extend business in India, Germany, develop business activities in France, the following HR issues have been identified.
- China endorse new law providing job injury insurance to workers
- Chinese authority are encouraging greater training and development in order to develop better human forces.
- In USA, the working hour is flexible. Employees can select working according to their convenient time.
- In Singapore, the population has been consider as key human capital.
- In India, there is lack of adequate training from the management to upgrade the skillness of the staff.
- In Shanghai and Hong Kong (China), the economy is growing gradually as well as technological development. Lots of foreign bank are establishing their financial business that are necessary successfully moving for any multinational companies.
- In France and Germany new law has been enacted, that ensure job security for the staffs.
(World bank.org, 2005)
Application of Hofstede Theory in Home & Co. New Business Activities-
While analysing the HR issues in new operational dimension, Hofstede theory will be helpful for came into the decision whether it is helpful for the company to move for globalization.
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Power distance measures how subordinates respond to power and authority. France, most Asian countries including India, China and African countries, subordinates tend to be afraid of their bosses, and bosses tend to be paternalistic and autocratic. While in low power distance countries, (the USA, Britain, most of the rest of European), subordinates are more likely to challenge bosses and bosses tend to use a consultative management style. There is interdependence between the boss and subordinate in low power distance countries as well, that means, people working together, both the boss and subordinate consider themselves Regarding power distance- there is high power distance in India. There is a rise of inequalities of power and wealth here that indicate existence of following the caste system by the society in India, which means lack of mobilization of people.
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In individualistic countries (France, Germany, South Africa, Canada, etc.), people are expected to look out for themselves. Solidarity is organic (all contribute to a common goal, but with little mutual pressure) rather than mechanical. Typical values are personal time, freedom, and challenge. In collectivist cultures (Japan, Mexico, Korea, Greece) individuals are bounded through strong personal and protective ties based on loyalty to the group during one’s lifetime and often beyond (mirrored on family ties). Values include training, physical condition, the use of skills. Regarding individualism versus collectivism, people in India, are prefer to work collectively, this culture reinforce extended families and collectives where everyone takes responsibility for fellow members of their group. We can take the example of country manager in India, who is recruiting his family members in the business, as he is influenced by the culture, where he prefer to work collectively along with his family members.
- Hofstede third cultural dimension is masculinity versus feminity where in a masculine culture the dominant values are said to be advancement (promotion), ambition, assertiveness, performance, and the acquisition of money and material objects. Feminine culture defines cultural values such as the quality of life, maintaining personal relationships and care for the week and the environment are emphasized. People living in USA, Singapore, India, Hong Kong, UK prefer to accept challenge in working life, tend to value a high opportunity for earning, looking for recognized their work while doing job. On the other hand, in feminine culture, people looking for keeping good working relation with supervisor, prefer to work with cooperative people, looking for living in an area which is suitable for themselves and for their family, looking for job security. France is holding this feminine culture (Salk, Jane E & Brannen, Mary Yoko, 2000).
- Uncertainty is fourth cultural dimension means people in a culture feel nervous or threatened by uncertainty and ambiguity and create institutions and rules to try to avoid them (Edwards & Rees, 2006). It is high in India, Shanghai (China) but low in Germany, France, UK, Singapore.
- Time orientation is the fifth dimension, which originally termed ‘Confucian dynamism’, indicates to the time horizons that people in different cultures are oriented towards, with some looking several years ahead in deciding upon particular courses of action and others geared to the shorter term (Edwards & Rees, 2006).
Hofstede’s Cultural Clusters (Edwards & Rees, 2006)
Limitation of Hostede Cultural Dimension-
Inspite of effectiveness of Hofstede Cultural dimension in understanding the national cultural context that can assist the Hume & Co. in better understanding the intercultural difference within regions and between countries, there are some limitations as well. Though the Hofstede theory was categorized by country, there can be more than one cultural group within one country. As an example, Canada can be mentionable, where two types of cultural group are living in this country. Majority of the population are English speaking, whereas in Quebec, the minority French speaking people living there. Between these two group has moderate cultural difference (cyborlink.com/besite/hofstede.htm). So this theory is helpful in understanding the cultural difference, but the Hume & Co. can not apply in all region. They need to consider the market share and other factors.
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