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The five main areas of interest that are analyses covers: the organizational context, the staffing context, recruitment and selection, international compensation and reference management, and continued management and re-entry. Analyzing the organizations’ organizational context, covered the international organizational structure and staffing approaches. Recommendations were made for the best option for Winch-it to undertake from an organizational context.
As a recognition staffing approach is suggest for Winch-it, host-country nationals and parent-country nationals are recommended to hire. The report analyses how these areas of interest reflect and impact upon the organization from a global perspective. Recruitment and selection is a pivotal process to hire the idea candidate for Winch-it. Areas of the recruitment and selection process is analyses to assist in hiring the perfect candidate for firm to enhance and grow internationally.
International compensation and performance is discussed with the options being available for Winch-it to enhance expatriate performance, also expatriate re-entry and continued management is discussed with how the issue of re-entry can be managed and how management can excel the conditions tort Winch-it Overall, Winch-it Pity. Ltd lacks its ability to grow as a business with limited staff and resources. Through the advising in the report, Winch-it Pity Ltd can opt to go international without further delaying the process.
By following the advice, the organization should expect to grow as a local and international firm in future. Table of Contents Executive Summary ? 2 1 . Organizational Context 4 2. Staffing Context 5 3. Recruitment and Selection 6 4. International Compensation and Performance Management 8 5. Continued Management and Re-entry 9 6. Recommendations ? 10 7. References ? 11 Organizational Context There are various staffing arrangements that Winch-it Pity. Ltd. May consider when looking to set up an international operation.
The approaches to managing and staffing subsidiaries to be considered when opting to expand Winch-it are: ethnocentrism; polytechnics; geocentricism; and regionalism (Dowling, Besting & Engle 2 Ethnocentrism assumes that local attitudes from the home-country, knowledge, style, managers and evaluation criteria are greater than those of the host-country, however, when considering expatriates; an ethnocentric staffing model would cost Winch-it thousands of dollars Just for maintenance and may lead to a substantial income gap, elevated power, and lack of sensitivity may be the cause of an increase n standard of living conditions (Desert, Griffith & Lloyd-Walker 2007). As. Polytechnics is the concept that only the host-country managers can understand the cultures and behaviors in the host-country (Dowling, Besting & Engle 2008).
On the other hand, career paths for both Hess and PC’s, can only rise to a certain extent, limiting opportunities for managers of Winch-let to gain any further experience. Geocentricism assumes that the finest individuals should be employed, despite their nationality (Dowling, Besting & Engle 2008). However this would not be suitable for Winch-it as it is expensive to implement due to the need for considerable cross- cultural training and development (Dowling, Besting & Engle 2008). Regionalism is considered a preliminary step in the direction of geocentricism. Managers have freedom whilst being transferred within a particular geographic region. It assumes that management is selected within a region of the world which most closely resembles that of the host country (Desert, Griffith & Lloyd-Walker 2007).
As a result, a recognition staffing approach is best suitable for Winch-it. A recognition staffing approach will allow Winch-it to move from a purely ethnocentric or polytechnic approach to a geocentric approach, it will allow interaction between management being transferred to regional headquarters from subsidiaries in the region and PC’s transferred to the regional headquarters. Also, Winch-it may utilities this approach as a meaner of success as most manufacturers are based within the Asian subcontinent, this will allow Winch-it to have almost full control over all of the firms subsidiaries (Dowling, Besting & Engle 2008). A sales subsidiary international organizational structure would best fit the needs of
Winch-let for overseas staffing rather than export department and international division structure, as it Winch-it has Just over 200 employees, compromises of foreign agents or distributors, preferably in the Asian subcontinent for Winch-it as manufacturing costs and labor are cheaper, with the organizations’ own sales subsidiaries in the market countries (Torchbearer & Expert 2010). Staffing Context There are three categories towards staffing, these are; the host-country, the home- country, and ‘other’ countries. The host-country refers to the country where the subsidiary may be located. The home-country refers to the country where the firm is headquartered to be, and ‘other’ countries refer to countries that may be the source of labor, finance and other inputs (Dowling, Besting & Engle 2008). Employees of an international firm can be classified into three categories also; host- country nationals (Hess), parent-country nationals (PC’s), and third-country nationals In accordance with Winch-let Industries Pity.
Ltd, there are various advantages and disadvantages towards the staffing context on internationalization. Language and other barriers are eliminated with host-country nationals, there are possible increases in morale due to the increase in career potential, a reduction in hiring costs, continuity in management and also, government policies may require hiring Hess. However, employing Hess may promote an association of nationalized rather than globalizes divisions for Winch-it, host-country nationals may have limited career opportunity outside the subsidiary, managing and organizing the headquarter may be encumbered and employing Hess may limit opportunities for PC’s to gain international experience (Torsion 1997).
Parent-country nationals have organizational control and maintenance of ordination, top performers are given international experience, parental-country nationals may be the finest individuals for a career with Winch-it due to skills and experience and also, are guaranteed that the organization will abide by the firms’ policies and objectives. On the contrary, promotional opportunities of Hess are limited, time and performance outlays associated with adjustment to the host- country and parent-country nationals may inflict an unsuitable headquarter manner, and reimbursement for PC’s and Hess may differ (Catastrophically 2010). Third-country nationals’ earnings and benefits may be inferior to those of PC’s Brioche, Schuler & Claus 2009).
However, host-country government may not want to employ Tics, and Tics may not feel as though they are ready to return back to their home countries after an assignment. As Winch-It is an SEEM and is at its early stages of internationalization, both Hess and PC’s would be suitable for the organization to employ. As it is an Australian home based organization, a parent-country national would be ideal to send to go overseas to initially set up the company overseas. An expatriate from a senior position of the organization with a broad knowledge, cultural understanding and appropriate experience, will assist the company in internationalist’s (Dowling, Besting & Engle 2008).
A host-country national from abroad who already has the required skills, knowledge of competition in the country, knowledge of culture and values of the country in which Winch-it requires setting up, should also be assigned which will assist the expatriate to set up the organization overseas (Desert, Griffith & Lloyd- Walker 2007). Recruitment and Selection Recruitment and selection is a pivotal element contributing to hiring the correct candidate for an assignment. Recruitment is the process of seeking and attaining attention Job candidates through the process of elimination so that the organization can select the most suitable candidate for the advertised career opportunity.
Selection is the process of gathering information to evaluate and decide which candidate should be employed for the advertised career opportunity (Desert, Griffith & Lloyd-Walker 2 7) The recruitment and selection process is implemented to effectively operate in managing an organizations’ staffing process (Torsion 1997). When selecting expatriate candidates for an international assignment, HER for Winch- it must consider several factors. They must identify a suitable candidate for the assignment, predict an expatriate candidate’s performance in a new, diverse environment, manage expatriate social and family issues and problems, formulate a suitable compensation package and conform with host-country policies. This is important to help prevent against issues related to staffing selection.
In order to ensure effective recruitment and selection, Winch-it need to: analyses their particular labor market, perform a Job analysis, build position descriptions, and create a Job design. When analyzing the labor market, Winch-it can effectively do so by thinking outside he square of where and who they are looking for to recruit. They need to consider who has the best qualifications for the role, experience in the field of engineering, skills, responsibility, what is expected of a quality candidate, and if candidates should be recruited internally or externally (Dowling, Besting & Engle 2008). In relation to this, Winch-it should recruit both internally and externally.
A host-country national should be recruited externally from the host-country in which Winch-it is to set up internationally. Recruiting a host-country national externally will be a wise decision s the HOC will have external experience, knowledge of the cultural and language aspects of the country of set up, and, the required skills and knowledge to set up an international operation in the host-country (Catastrophically 2010). On the contrary, Winch-it should recruit a parent-country national internally as an internal candidate will carry their attributes to the host-country which will contribute in setting up the subsidiary according to the home-country.
For example, the Coca Cola Company uses all three staffing approach, except ethnocentrism, hiring local staff which is beneficial s it costs the company less (Hill 2003). Job analysis is the second step for Winch-it to achieve effective recruitment and selection. This is the procedure for HER managers to determine the ideal candidate with the required skills and duties for the appointed role. HER managers at Winch-it must identify ways information will be gathered, review background information, select and analyses candidate information, analyses the Job by gathering data, review the information with Job management, and develop a Job description and Job or candidate specification.
However, this can be a lengthy process at times due to lack of sources (Dowling, Besting & Engle 2008). The following step to the recruitment and selection process is position description; those describing what the Job is concerning. Winch-it must provide a specific list of the Job description guidelines, working conditions and physical environment of the role, standards of performance, and authority. When looking at Job design, Winch-it should consider what methodology to use to recruit . T This can be internet advertising; Seek, industry magazines such as those related to engineering, and simply by networking and international recruitment sources; Hess and PC’s.
International Compensation and Performance Management An organization’s compensation system is usually the meaner of by which employee rewards are designed and managed. On a broader scale, international compensation covers the areas of monetary and non-monetary employee rewards, include; base salaries, reimbursements, bonuses, long and short-term incentives offered to employees according to their organizational performance (Harming, & Recursively 2004). There are two basic approaches commonly used to determine an international compensation package; the going-rate approach and the balance-sheet approach. In tooth approaches, housing and additional taxes are additional expenses which are reimbursed; however, they do come with certain conditions.
Out of the two approaches, the Balance-sheet approach should be adopted by Winch-it as compensation is set to home-country norms, equalizing the purchasing power of expatriates at equivalent stages residing overseas and, in the home-country providing incentives to compensate for diversity between locations (Desert, Griffith & Lloyd-Walker 2007). There are four types of outlays considered in the balance-sheet approach which are incurred by expatriates; good and services, housing, income axes and reserves (Warned & Schneider 2011). By adopting this approach, an expatriate for Winch-it will be provided with equity between assignments and between expatriates of the same nationality, assists expatriate re-entry and is a simple process to communicate with employees (Warned & Schneider 2011).
Conversely, the going-rate approach focuses on compensation which is set in accordance with host-country norms and has implications with expatriate re-entry, if this approach is undertaken, an expatriate for Winch-it will experience differences between assignments and rivalry will exist amongst expatriates in receiving assignments in several countries (Harming & Recursively 2004). Such as in the case study of ‘Going International’, Sam Wallace, General Manager, Australia for Pacific International and James Lie, General Manager, Hong Kong, are constantly involved in heated disputes due to their cultural differences (Stone 2002). According to Dowling Besting & Engle (2008, p. 68), international performance management is the process that enables the multinational to evaluate and continuously improve individual, subsidiary units and corporate performance against clearly defined, pre-set goals and targets’. This is a systematic appraisal of employees’ performance within the organization, depending on the overall HARM strategy considering cultural influences (Desert, Griffith & Lloyd-Walker 2007). There are five main factors that may affect expatriate performance; compensation packages, assigned tasks, headquarters’ support, host environment and cultural adjustments – personal and family. A performance management scheme should be adapted to accommodate the needs of Winch-it through implementing training and development and performance-related pay (Dowling, Besting & Engle 2008). Continuo deed Management and Re-entry
Expatriate re-entry or repatriation, is the activity of bringing an expatriate back to the home-country (Harming & Recursively 2004). Re. Repatriation is an important aspect of expatriate management because with it, are associated a number of critical challenges for the expatriate which may significantly determine his or her performance prior to the home-country, which encumbers the expatriates’ reintegration due to “readjustment problems” or “reverse culture/re-entry shock” after return (Hyde & Lovable 2007). Expatriate re-entry problems, can affect spouses or partners, expatriate social well- Ewing, and create career anxiety, loss of status and pay, devaluation of international experience (Harming & Recursively 2004).
Re-entry to the Australian operation can be maintained by pre-departure orientation training programs before being assigned by: providing cultural awareness programs; assign home mentors; provide web- based indices and establish communication protocols, providing expatriates an idea of the country in which they are to be recruited to. However, this may cost Winch-it a great deal to implement and may be a lengthy process to set up and incorporate within the organization. During the assignment, Winch-it should implement a systematic pre-return orientation to assist expatriates as well as expatriates frequently communicating with the sponsors (Harming & Recursively 2004). Upon the return, assistance with factors other than work will be beneficial as well as expatriates sharing their international experience.
Every international manager has responsibility for effectively managing human resources; therefore management at Winch-it must understand IHRAM functions which will be helpful for potential career impact. Recommendations While opting to go international and expand the organization, Winch-it must follow he suggested recommendations for the five areas of interest strategically, without any implications to avoid expatriate failure or re-entry. With the appropriate methods of the recruitment and selection process and implementation of pre-departure and expatriate training, Winch-it should not be at any risk of failing to manufacture in overseas markets.