The present report is based on the international human resource strategy of All Scientific Instruments. The organization is currently facing some major HRM issues in its overseas subsidiaries, which are probably caused by culture disagreement, increase of Union’s support for the employee base. According to the case study provided, the major issue that ASI faces is the diversity condition –the practices that headquarter follow, are not implemented to the host countries properly. Moreover, there is a significant communication gap between American expatriates and the subsidiary workforce. Likewise, there are some other significant issues in the operation. The major purpose of the report is to critically analyze those issues and develop appropriate HRM strategies that help the firm to resolve the problems.
ASIs developed a strong corporate culture, which mixes up the values and visions with the workforce. To retain such culture, the organization endeavor to implement a strong control over its subsidiaries by employing the expatriate managers in two major department of the operation- technical and managerial. The subsidiaries are restricted to the goals, strategies set by the parent company, and the subsidiaries have limited control over those goals and targets. As per the company’s policies, the expatriate managers are asked to keep union out or reduce its influence, which is certainly difficult because the political and legal framework controls the region. The organization must comply with the political environment to keep organizational operation in place. The case study indicates that ASIs attempt to implement an autocratic management style throughout the organization and its subsidiaries. Moreover, performance management strategies of the company are not effective for the company where the benefits of employees are very limited. Based on the issues found in company’s operation, the following the strategies have been proposed to modify the overall operational strategy.
Proposing changes requires with justification
Negotiation- It can be mentioned that there ASIs need for a deeper understanding of the management practice of subsidiary remains crucial for an informed conceptualization of contemporary management practice usually. In order to implement parent company’s target and goals, expatriate managers of the subsidiaries need to negotiate with the Union of the region. As Union’s influence are increasing, if a negotiation can be developed between the union and the subsidiary. Some provisions related to operation such as benefits of additional work, limited number of holidays should be agreed between both the company and the union. Employees may agree to the conditions, as influence of unions is high. On the other side, Head Quarter of ASIs should also focus on the employee empowerment, which means expatriate managers should be given more power and authority to control the overall operation.
Employee Training- In order to avoid language barriers and communication barrier between American expatriate and the subsidiary workforce, an exclusive training program needs to be implemented throughout the organization (Story et al. 2014). Especially, employees of each subsidiary should be provided with English Communication training program. Establishment of communication through training program could help to resolve the workplace issues that usually occur during the operation.
Motivation Strategy –In order to have a strong control over the production, the employees should be encouraged with certain benefits. Motivation strategy has been discussed with Herzberg Two-Factor theory.
Hygiene factor-Hygiene factor developed by Herzberg are mandatory for the existence of motivation at workplace. These factors might not lead to positive satisfaction long-term but if these factors are absent, employees might lack motivation (Park and Ryoo 2013).
Pay-The pay or salary structure of ASIs needs to be proper and reasonable and it should be equal and competitive.
Fringe benefits- The employees of ASIs should be offered healthcare plans and additional benefits for the family members. For example, the organization Unilever provides medical coverage to its employees and their families (Elzakker et al. 2012). This strategy certainly helps employees to keep a balance between work-life and family.
Interpersonal relationship- The relationship of the worker with the managers and peers should be appropriate. This can be done through open communication style. Communication helps to avoid conflict in the workplace.
Motivation factor-
Growth and promotional opportunities- There should be growth and advancement opportunities in ASIs to encourage employees to perform well.
Responsibility- The expatriate managers should hold themselves responsible for the work. Parent company should give ownership of the work. The parent company could minimize the control but retain the accountability.
Diversity management- Diversity theory developed by Thomas indicates that managing inevitable diversity of the dynamic workforce is mandatory for managers and leaders. It is certain that employees at ASIs come from different cultural backgrounds; thereby, employee culture should be valued and respected. A healthy work culture should be developed in the subsidiary branch, where the communication should be a major priority. Such practice allows every individual to contribute to naturally to organizational goals and objectives.
Making the strategy locally responsive and yet global in its scope
The proposed strategies mentioned above is locally responsive because the strategies such as motivation and diversity management are required in every field of organizational operation. Especially, the diversity management is highly essential when the organization is running the operation in global environment because the employees come from different cultural background. Thus, to integrate people from different cultural background, the firm must need a diverse work culture. Thereby, the above-mentioned strategies can be applied to both regional and global environment.
Global expatriation strategy
As ASIs employs a global strategy should be concerned regarding identifying the difference. The organization should try to integrate the best talents from the subsidiary regions into one single corporate culture and one global strategy. Hence, the expatriates could help the creation of a common organization culture through the establishment of informal communication framework throughout the organization and understanding global integration throughout indirect control mechanism. Here, as the use of global competency could be another instrument based on which the strategy is applied, the organization could make use of developmental assignment in which the organization could expect to increase promising talents for the assignment in the future.
Expatriation program
As put forward by Gröschl (2011), International operation are making an increasing contribution to the bottom line of major US organization. As the competition is high in the global environment, the organizations should develop a more sophisticated expatriation program where global challenge can be tackled easily. The following program is proposed to resolve the expatriate issues at ASIs.
Action 1: Consider –Align –Motivation
A gap between organizational and assignee motivation could exist where the global assignments are concerned. The assignees take global assignment focusing on their overall interest in the opportunity and for career development purpose; likewise, few individuals tend to take global assignments for high compensation and benefits (Collings 2014). Hence, AISs needs to expatriate desires for personal and professional development. Considering expatriates’ expectation, the organization needs to align those with organizational goals and target.
Action 2- Maximize Assign Experience
The organizations need to identify employees who have completed successful assignment and upon their return and use their competencies sending them on another global assignment using the experience they have gained to mentor first-time assignee (Farndale et al. 2014). This strategy could appear to be an antidote to repatriation issues.
Action 3- Recognizing the importance of family
While the expatriate feel the quality of life enhances for their family members, they are also aware of the potential effects that assignments- challenge of family adjustment. ASIs need to understand and recognize the value of educational, language and cultural support for their families as the means to a more successful experience.
Conclusion
The above-mentioned discussion helps to learn that the organization ASIs is currently facing some HRM issues in the subsidiary plant. As the expatriate managers are having limited control over the operation, they are not able to integrate the employees and fulfill organizational demands. Therefore, a strategy of negotiation, employee training, motivation, and diversity management have been proposed to ASIs. Negotiation strategy could help to resolve the issues related to employee demand, involvement of Union and expatriate managers’ control over subsidiary’s operation. Likewise, strategy of employee training has been proposed to resolve the issues of communication and language barriers. Diversity management strategies could help to integrate the employees of different cultural background. Workforce integration is required to develop a healthy work environment, which would eventually help to maximize organizational productivity.
Reference and Bibliography
Almond, P., 2011. Re?visiting ‘country of origin’effects on HRM in multinational corporations. Human Resource Management Journal, 21(3), pp.258-271.
Almond, P., 2011. The sub-national embeddedness of international HRM. Human relations, 64(4), pp.531-551.
Collings, D.G., 2014. Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities. Journal of World Business, 49(2), pp.253-261.
Dartey-Baah, K. and Amoako, G.K., 2011. Application of Frederick Herzberg’s Two-Factor theory in assessing and understanding employee motivation at work: a Ghanaian Perspective. European Journal of Business and Management, 3(9), pp.1-8.
Farndale, E., Pai, A., Sparrow, P. and Scullion, H., 2014. Balancing individual and organizational goals in global talent management: A mutual-benefits perspective. Journal of World Business, 49(2), pp.204-214.
Gröschl, S., 2011. Diversity management strategies of global hotel groups: a corporate web site based exploration. International Journal of Contemporary Hospitality Management, 23(2), pp.224-240.
Park, S.C. and Ryoo, S.Y., 2013. An empirical investigation of end-users’ switching toward cloud computing: A two factor theory perspective. Computers in Human Behavior, 29(1), pp.160-170.
Schuler, R.S., Jackson, S.E. and Tarique, I., 2011. Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of World Business, 46(4), pp.506-516.
Story, J.S., Barbuto, J.E., Luthans, F. and Bovaird, J.A., 2014. Meeting the challenges of effective international HRM: Analysis of the antecedents of global mindset. Human Resource Management, 53(1), pp.131-155.
Tan, T.H. and Waheed, A., 2011. Herzberg’s motivation-hygiene theory and job satisfaction in the Malaysian retail sector: The mediating effect of love of money.
Thite, M., Wilkinson, A. and Shah, D., 2012. Internationalization and HRM strategies across subsidiaries in multinational corporations from emerging economies—A conceptual framework. Journal of World Business, 47(2), pp.251-258.
van Elzakker, M.A., Zondervan, E., Raikar, N.B., Grossmann, I.E. and Bongers, P.M., 2012. Scheduling in the FMCG industry: An industrial case study. Industrial & Engineering Chemistry Research, 51(22), pp.7800-7815
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