Question
Task 1– Article
Theme 1
- Examine the contextual factors of an international organisation (AC 1.1)
- Assess the drivers and benefits of employment in an international context (AC 1.2)
- Explain convergent or divergent approaches to inform people management policy and practice choices (AC 1.3)
Theme 2
- Evaluate the factors to be considered when selecting and resourcing for international assignments (AC 2.1)
- Explain why people practices can vary across international boundaries (AC 2.2)
- Evaluate the cultural and institutional differences to be considered when managing international people practice (AC 2.3)
Theme 3
- Evaluate the function of people practice in an international organisational context (AC 3.1)
- Consider the practices and policies that are shaped by the international context (AC 3.2)
As part of the drive to educate staff about the current changes, your manager also feels that further guidance is needed around expatriates. You have been asked to generate a short briefing paper that addresses the following areas:
- Evaluate the reasons that companies use expatriates for international working (AC 4.1)
- Explain the process for selecting, preparing and managing expatriates for overseas relocation for work (AC 4.2)
- Explain how people practice can support re-entry and resettlement of overseas workers (AC 4.3)
This briefing paper needs to contain clear, easy to follow information that can be read by any staff member. It should contain research and references and educate the reader.
Solution
Table of Contents
Task 1- Article
Theme 1
1.1
As evidenced by existing research on performance appraisal in businesses, global organisations need to prioritise on best practice to source, recruit, deploy and develop talents in an international based practice as core area of people management strategy. According to CIPD (2016), internationally, an organisation encounter issues and need to establish the best approach to develop and maintain a good talent base. By doing this, it is important for employees and organisations to prioritise on contextual factors of an international organisation context. A summary of these contextual factors which influence global opportunities are illustrated in figure 1;
Figure 1: Contextual factors of an international organisation
Further, according to Sbernini et al. (2018), through a focus on the contingency theory, it is possible to inform the best practice of these factors. This theory assumes that there is a necessity of engaging the most advantageous course of action by prioritising internal and external aspects. This is through an advantageous course of action by an organisation dependent on a situation and context. In context of the people management, the contextual factors are;
Championing the Process– This factor entail developing and monitoring global talent management strategy and policies, available tools and strategies. A case example is in Large Co which has been expanding in Eastern European Cities, the talent management would be appropriate for all the entities. This is with monitoring of the global talent management processes, coordinate, processing and techniques adopted.
Guardian of Culture– Being both political and economic disruptive change, it promote culture mobility of the overall organisation, incorporating value in entire organisation approaches and activities. In Large Co, this lead to support of global mobilities of people professionals.
Manager of internal receptivity– This entail successfully encouraging inflow and outflow of core talents in a global business environment. The rationale of this is promoting talents outflow across different business entities for encouraging distinct units to successfully manage diversity. This is inclusive of career management, integrating them and successful work-life balance.
Network Leadership and Intelligence– According to Ebray (2021), appropriate networks development internally and externally in an entity directly impact global talent management approaches. Being aware of this for example in Large Co, would include venturing in the internal and external labour market, talent approaches mobilisation. This is for timing and context strategy.
1.2
According to Dickmann and Cerdin (2014), the main drivers of employment in an international context identify reasons people willing to work in an international context. The different drivers are summarised in figure 2;
Figure 2: Drivers of Employment in an International Context
Family and other Social Background Factors
Different norms and values existing for families and environment, ethnic background, skills, national and cross-national relationships for people, families, social backgrounds and families which all influence personalised world view. According to CIPD (2021), they note main barriers for younger members of the population and international work opportunities for families and partnerships influence. The stronger the cultural and family association in an individual country/city, the less the likelihood of people leaving their job roles.
Personality and Safety
In line with the Theory of Purposeful Work Behaviour (TPWB), Doerr (2020) identify existence of an association of personality and workplace safety as having an influence on international working (see figure 3);
Figure 3: Theory of Purposeful Work Behaviour
Additionally, for personal agencies, self-efficacies and positive expectation has a direct contribution on increasing the willingness to work internationally. This is while the safety considerations playing a main role in ensuring decisions for international working are made.
Career and Development Considerations
For expatriate employees, People Management (2020) identify Post COVID-19 pandemic in today VUCA world, duty of care is tasked with playing a core function. This is for both personalised and professional development career growth. Taking into account of individuals of future job roles and their impact on foreign work on individual development and career development opportunity with a likelihood of main consideration on organisation working internationally mobile people. The core job function and career opportunities has a significant impact on making decisions to accept their foreign job roles.
Organisational Factors
Making decisions to accept international job position is influenced by likely financial issues. To affirm this, Sticky Wage Theory (Huo & Rios-Rull, 2020) identify wages as ben seen as sticky-down implying easier transition upwards at ease with its down movement being a major issue. This is as illustrated in figure 4;
Figure 4: Sticky Wage Theory
Source: Dickmann and Cerdin (2014)
A case example is in Large Co which require to make sure their organisations are offering good monetary and non-monetary dealings for people which are attractive for highly talented people. Organisation drivers also entail opportunities created by people and organisations best practice in their operations.
The various benefits of employment in an international context are;
- To fill roles with shortage of highly-skilled staff– Technical positions in international business, high-level skills are resourced for optimum organisation gains. They tend to vary in terms of international workforce resourcing representing organisation best strategy.
- Language and foreign knowledge/expertise– International recruitments lead to employees gaining a capacity for harnessing an effective communication. This is also intended to appreciate entire cultural intricacy and nuance with likelihood of disconnecting a business strategy.
- Creativity and Perspectives– The international employment directly impact an organisation direct perspective in process of inclusion and diversity.
- Rich workplace culture– This entail establishing a rich and more fulfilling workplace culture for all engaged employees. This has an impact in harnessing the morale and positively gaining a reputation of an organisation culture.
1.3
For people management policy and practice choices, successful international context depend on capacity to judge level of organisation implementation of similar strategies globally (Convergence) or adopting local conditions (divergence). According to Theitactone (2020), the rationale of this is that organisations need to make decisions on if to use these strategies which include convergence, divergence or hybrid system. In line with Convergence Theory (see figure 5), this evidence the level of HR policies converge (worldwide) for being primarily similar in entire locations or diverging (differentiating responses to local requirements).
Figure 5: Convergent and Divergent Factors
Source: Rhodes et al. (2018)
Convergence Approaches
This strategy is informed by the assumption that there are particular relevant management strategies not fitting when used in different backgrounds. In line with Theintactone (2020), these are particularly popular in the case of Europe and also USA. Considering Large Co organisation case, its continuous interaction in different national and cultural divisions can be appropriate to create a globalised culture characterised by specified best practice in business management and HRM practices. The use of this in business practices policy development is for appreciating existing culture different for success in convergence of management strategies. For people management policy, the most appropriate strategy of people management policy and practices can contribute to;
- Distinct and limited legislations which influence employment conditions
- Good relations for informal sector providing limited employment security for employees
- Improving workplace relations in tandem with existing cultural norms and traditions
- Freely flowing information within national and international boundaries leading to creation of best practice in different countries
Albeit of the scope of globalisation and market dominance by MNCs contributing to finalising convergence in HR practices having a high probability, available evidence highlight that this is not a must. International organisations offer HR practices beyond the MNCs.
The pros of convergence approach is guided by the fact that it develops an opportunity to improve overall management practices in different national boundaries. For the cons, these are conflicts of the culture and managerial practices which characterise divergent approach which recognise culture differences.
Divergence
As noted in Al Ariss and Sidani (2016), divergence theory is informed by assumption that different management strategies are dependent on circumstances and set entity goals. The meaning of this concept is more informed by cultural theory and institutional theory (See figure 6);
Figure 6: Divergence Theory
Source: Fan et al. (2016)
The core assumption of divergence theory is that there is no ideal strategy for managing all prevalent circumstances. Hence, there is a need to embrace agility and modify available systems to suit distinct circumstances to yield projected results.
Proponents of divergence theory note that this influence people management policies and practices which are;
- Diversity guided by cultural value orientation
- Prescence of value capitalism
- Varying national business systems available
- Diverse and unique legislations in people management policies
- Intra-national heterogeneity in a phenomenon large countries are engaged
In affirming the importance of divergence theory in holistic people management policies development and practices, Hofstede dimensions theory can be used. According to Cooker et al. (2019), a set of 5 elements of this theory including power distance, masculinity index, individualism/collectivism, uncertainty avoidance and long-term orientation has a direct impact on use of divergence model. The noted dimensions inform presence of a culture gap noting the differences in different countries actively engaged to establish whether it is important to modify management strategies to suit new cultural strategies. A low culture distance imply modification is not essential.
The pros of divergence model include establishment of appropriate policies and strategies used in global business environment. This is with achievement of an employer brand in business environment of practice. With divergence concept facilitating unique approaches of HRM in different markets, it end up being counterproductivity to ignore best practices in other markets. To a different font, this can be a disadvantage since it influence an embrace of same models for entire subsidiaries of an organisation being the most appropriate management strategy.