Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.
People management systems of Canadian-based MNC in Turkey
Mike Ansell has asked Helen Reeves to head up the new Turkish operation and he has suggested to her that this subsidiary should have the same organizational and people management systems and practices as those successfully operated by VC in Canada and England.
Introduction
MNCs are operating across boundaries other than their home countries, a phenomenon or opportunity that is full of challenges as far as the management of foreign subsidiaries is concerned. One such company is Vancouver Communication which apart from having a branch in England has discovered the existence of potentials in Turkey’s market. Moving to Turkey will not change the company’s management approach where it has for a long time favored the ‘home-county approach’. Therefore, the question that needs to be answered is whether the approach will be able to succeed or if the new manager in the area needs to accept a change of the approach to fit in the environment.
Discussion
Geographically, Turkey occupies Asia Minor while another small portion is found in Europe (Culture of Turkey Forum n.d, p.1). Currently, the annual population growth of the country is estimated to be at 1.6 percent from the earlier rate of 2.5 percent (Culture of Turkey Forum n.d, p.1). According to the 1998 population census, the country was found to have 64, 566, 511 people where 65 percent were found to inhibit the urban areas while another 35 percent to be in rural areas (Culture of Turkey Forum n.d, p.1). Evidence shows that Turks originated in inner Asia hence much of its cultural characteristics resemble those of the Middle East and Asian countries although at the same time much has been adopted and incorporated from Western countries (Culture of Turkey Forum, n.d, p.1).
Hofstede identified five cultural elements that denote the national cultures of different countries. The first identified element by Hofstede has to do with the extent of power distance (PDI) where different societies are seen to exhibit differences about members of the society having or exercising power. According to Hofstede certain societies are characterized to constitute less powerful members about power while other societies members are more powerful about power (Jackson2002). Individualism Index (IDV), as another element of Hofstede largely evaluates between two concepts of individualism versus collectivism and measures how these two concepts characterize different societies (Jackson2002).
Individualistic societies are loose and person-centered, while collectivist societies are largely integrated, cohesive, and have in-group tendencies; masculinity versus femininity (MAS) which postulates the distribution of gender roles, and different societies are seen to exhibit different mechanisms about gender roles (Jackson2002). This is in addition to uncertainty avoidance (UAI), which deals with the level of a society’s tolerance for uncertainty and ambiguity; and lastly, it is the long term orientation (LTO) where this aspect deals with studies and surveys done in China and has to do with a society’s aspiration for long-term versus short term orientation (Hofstede n.d, p.1).
Managing human resources in foreign appears to be a pressing issue that most MNCs have to contend with. For instance, adapting to the various human resource policies and procedures found in foreign countries aligning them with home country practices pose a challenge (Jackson 2000). There exist numerous inter-country differences that in reality demand adaptability.
These differences manifest in different forms: cultural factors, where Canada and Turkey are seen to be culturally different and according to a study by Geert Hofstede international countries show to be culturally different in many aspects. For instance, Hofstede asserts that societies show differences in power distance where different societies differ to the “extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally” (International HRM Association, n.d).
On the other hand, individualism versus collectivism refers to the degree to which ties between individuals are generally loose than close (International HRM Association n.d). America and Canada have characteristically come out as individualistic societies while Asian and Middle countries seem to be collective (International HRM Association n.d). Most international companies operating in a foreign environment usually utilize three main approaches to managing and staffing subsidiary units (International HRM Association n.d).
In general, the three major approaches are ethnocentric approach; polycentric approach; and geocentric approach (International HRM Association n.d). These inter-country cultural differences have numerous impacts on human resource management aspects whereby there is always a need for adapting human resource practices such as selection, testing, and payment plans to local cultural norms. At the same time, the suggestion is that for efficiency and greater performance human resource staff and personnel need to be drawn from the host-country citizens (International HRM Association n.d).
Vancouver Communication in operating its foreign subsidiaries has resorted to an ethnocentric approach, which has the following characteristics: the home country’s practices are incorporated; the home country headquarters participate in making key management decisions; employees from the home country hold important managerial positions; and generally, the subsidiary plant adapts to the home country resource management practices. In the perspective of Mike Ansell, Canada has the best approach, which should be utilized in other parts of the world. However, what is the limitation of this approach in a country like Turkey? With globalization taking center stage, the ethnocentric approach has proved to be difficult to implement since the strategy has been regarded to be rigid and lacks flexibility.
At the same time, Turkey portrays a complex and diverse culture as compared to Canada and England, and therefore ignoring the cultural aspects of the country may fail in the company’s objectives (Harzing and Ruysseveldt, 2004). For example, the collectivist orientation of Turkey may have little to do with a motivational policy that largely reflects the individualistic culture of the parent company (Harzing and Ruysseveldt 2004).
Further, companies that have favored ethnocentric approach in foreign subsidiaries have largely suffered numerous problems of low productivity, friction between HCN and PCN managers; PCN suffers from diverse problems related to the adaptation process to the foreign environment. Also, during the adaptation process, PCN managers become much ineffective as compared to when they were in their home country (Harzing and Ruysseveldt, 2004).
For Helen Reeves to work well in the Turkey environment, she will need to incorporate human resource management styles that are likely to succeed in the environment. Analyzing and evaluating the three main approaches of managing subsidiary plants it is clear that no one particular approach has the full potential and capability to succeed on its own, what is needed is a hybrid strategy where Vancouver Communications Company needs to treat each subsidiary individually on a case-by-case basis.
According to the Turkey subsidiary, it would be advisable for Helen Reeves to integrate both the ethnocentric, polycentric and geocentric approaches and come up with an appropriate hybrid approach to utilize in Turkey. At the same time designing an appropriate hybrid approach will require Helen Reeves to undertake a thorough preparation assignment plan for the Turkey market. First Reeves will need to select the right kind of staff for the foreign assignment and selecting the right staff, she will need to have people who are quick to grasp and cope well with new and unfamiliar situations (Adler and Gundersen, 2008).
In this regard, she should be able to select a staff that demonstrates cross-cultural adaptability (Tayeb 2005; Adler and Gundersen 2008). Dowling et al. (1999) established and discussed six major factors to be considered in selecting expatriate: about an individual there is a need for technical ability, cross-cultural suitability (Adler and Gundersen, 2008), and family requirements; about the situation, there is a need to select individuals according to country-cultural requirements, language and MNC requirements (Tayeb, 2005). Black et al (1999) postulate that selecting overseas staff requires consideration of critical strategic functions that include professional skills, conflict resolution skills, leadership skills, communication skills, ethnocentricity, flexibility, and stability (Tayeb 2005).
At the same time, Helen Reeves will need to consider undertaking training programs for the selected staff in the Turkey market. The training assignment for the manager will include cross-cultural training with aim of enabling the staff to adapt and adjust to the foreign culture (Tayeb 2005). Black and Mendenhall (1990) observers that expatriate cultural training greatly influences success in foreign subsidiary firms. On their part, Caligiuri et al. (2001) define cross-cultural training as “any intervention designed to increase the knowledge and skills of expatriates to help them effectively in the unfamiliar host culture” (Tayeb 2005, p.188).
Based on their argument, the authors argue that cross-cultural training has the following goals. First, it should empower the expatriate in advance with the necessary cultural behaviors and suitable ways of performing necessary tasks in the host country. Secondly, it should provide help to the expatriate to cope with the unforeseen events in the new cultures and reduce conflict due to unexpected situations and actions; and lastly, it should construct pragmatic expectations for expatriates concerning living and working in the host country (Tayeb 2005).
Conclusion
In summary, Helen Reeves should carry out the feasibility of the geocentric approach, which in turn with the parent company can be implemented in Turkey. Why the geocentric approach? This approach is regarded as a worldwide approach and is a system that has evolved to be interdependent. The implementation of this approach results in consideration of both worldwide and local objectives and every part of the organization is seen to make a unique contribution, which in turn advantage the organization (Moran, Harris and Moran, 2007).
Furthermore, geocentrism approaches call for collaboration between headquarter and subsidiary plant to establish universal standards that incorporate local variations (Moran, Harris and Moran, 2007). The geocentric approach requires the selection and training of the best people worldwide to solve the various problems in the subsidiary plant and competency becomes the dominating factor, which is further enriched by a motivating reward system.
Issues facing Canadian-based corporation in support of its expatriates in Turkey
Introduction
Indeed, the role of an expatriate in international management is an issue that cannot be ignored but most companies have tended to ignore the aspect and the repercussions have not been encouraging. Management of expatriates’ has evolved to become a key factor in determining whether a firm becomes successful or fails in the international undertaking. Expatriates have both needs and problems before they leave and when they present themselves to the foreign environment.
Issues to do with relocation, family, language barrier, cultural shock and conflict, management style, environment and climate, working conditions, regulation, compensation, and remuneration issues, and compensation and motivation are inter-related factors that have combined to influence, determine or even shape expatriate foreign assignment. Therefore it becomes necessary for the company to have thorough consideration and address these issues if it intends to realize success in foreign missions.
Discussion
Expatriates have become important assets for companies with foreign subsidiaries. The expatriates are critically important at fulfilling and completing specific strategic tasks (Lindsay 2004). In essence, international human resource has become a challenge but at the same time, it cannot be forgotten that management of international human resources in the modern days constitute yardstick of evaluating the success or failure of any company.
About Vancouver Communication, issues raised by the expatriates indicate the company operates an inefficient expatriate repatriation programs for its overseas employees. Expatriates always come back to home companies with immense experience and perspective of doing things but poor repatriation processes have been cited to underutilize the acquired talents of expatriate and in the long run discourage future acceptance of foreign assignment (Lindsay 2004).
Numerous recommendations have been suggested as to how well effective repatriation can be undertaken, they include comprehensive and effective training of the managers before they proceed for the foreign assignment; providing necessary support while they are abroad, and acculturating them when they have finished their foreign assignment and they return home (Lindsay 2004). Appropriate retrofit programs for a re-assimilating expatriate are required and companies that have excelled with these programs have demonstrated to embrace pre-planning before the expatriate can leave (Lindsay 2004).
An effective repatriation process is further seen to constitute vital steps taken before departure, during the period of assignment, and the time when the expatriate comes back in the country. According to studies done on experienced expatriates, they identify three key areas that companies need to initiate change for effective repatriation; these areas are task clearness, career counseling, and prescribed policies and plan for repatriation (Lindsay 2004).
Task clarity is essential and necessary for: “increasing expatriate focus on a task and lessening their anxiety while overseas; creating a sense of accomplishment when their overseas assignment task is completed; and lessening their anxiety upon their return, and easing their transition into the home base” (Lindsay 2004, p.3). Career counseling has gained positive acceptance among many firms and is seen to result in some level of satisfaction as far as repatriation processes and initiatives are involved.
The role of career counseling within this environment has been summarized by Lindsay where she observes that career counseling for expatriates help in outlining, “how expatriate overseas assignment fit with the goals of the firm; how the expatriate contribution to the foreign assignment made a difference for the firm; how the skills and knowledge acquired from the overseas assignments would translate into career enhancements when they returned; and the kinds of positions they would be offered in the home office depending on their performance overseas” (Lindsay 2004, p.4).
Observation from most companies shows that when the managers returned, they were put back to their earlier positions and roles before they left thus ignoring their newly acquired responsibilities and experiences. Thus, many expatriates coming back felt underutilized in their roles a situation that prompts many to leave. To avoid these instances and anxiety associated with it, effective repatriation plans need to be designed and should be based on high-quality career counseling for expatriates that should among others include: “the reasons for sending the manager overseas; the benefits of the overseas assignment to the firm and the manager; and the manager’s career options upon return” (Lindsay, 2004, p.5).
Another issue identified in Vancouver Communication about expatriates had to do with compensation. It was found from the research that the reward and compensation system in place was unsatisfactory to many of the expatriates in foreign assignments. An effective expatriate compensation system is an important mechanism that elicits different expatriate leadership and managerial roles and behaviors, but most organizations VC included have resorted to the use of ‘state of the art’ compensation policies instead of adapting to the expatriate compensation system reflects the different roles of expatriates (Dickmann 2008). Dickmann provides the functional key steps an organization needs to follow and put into account when designing a reward and compensation strategy for the expatriates.
These steps are:
- adherence to initiatives for consistency in expatriate compensation and these initiatives should not exacerbate multi-local compensation differentials.
- The organization should not assume that there exists homogeneity of interests among the various parties about expatriate compensation determination and there should be consideration of human resource competencies refreshing programs that in turn are matched to progressive compensation priorities and systems.
- There should be a thorough evaluation of corporate priorities with aim of minimizing the transaction costs but having valuable, rare, inimitable, and non-substitutable expatriate resources, which also encourages procedural justice.
- The organization should carry out an audit to find out how expatriate compensation practices enable or constrain the development of a global mindset.
- There should be consideration of ways expatriate compensation may be calibrated to align with multidirectional knowledge sharing, exploring the optimum balance between individual and collective performance.
- The organization should pay attention to the social referents influencing expatriate expectations and behaviors in setting more performance-oriented expatriate compensation, acting on opportunities for greater openness and transparency.
- Supplement attention to securing and retaining expatriates with a lot of consideration of motivational features not only of the quantum but also the mode of delivery of expatriate compensation, emphasizing organizational effectiveness contribution and how that is made.
- The organization is further expected to weigh the different alternative approaches to structuring and delivering expatriate compensation contingent to the extent, which the managers are expected to operate in local innovation. Such compensation system will call for career incentives coupled with a short-term intrinsic reward with longer-term extrinsic reward initiated through vertical post-assignment career progression.
- Lastly, the organization further will need to pay a lot of attention to the expatriation psychological contract, as a mechanism for dialogue around mutual expectations and obligations (Dickmann 2008).
Conclusion
Expatriates experience repatriation difficulties that range from culture shock, re-entry shock, and problems about re-integration (Nolinske, 2004), problems associated with readjustments, professional difficulties, and social and personal problems. All in all, the company is supposed to respond to these issues if it entails having a committed and well-motivated expatriate personnel. Responses to these problems should take place in three major faces of the preparation phase (pre-departure training); the next phase is the physical relocation phase, which also involves the transitional phase; and the last phase is the re-adjustment phase.
Furthermore, the company is supposed not only to provide care for its expatriates before departure but also during and after their foreign assignment to maximize the benefits of the international and intercultural assignments. Therefore, it is recommended that the company should create an effective repatriation program and the repatriation process should be well designed and organized to ensure the company achieves its objectives and the expatriate meets their expectations.
Reference List
Adler, N. J., and Gundersen, A., 2008. International dimensions of organizational behavior. OH: Cengage Learning. Web.
Culture of Turkey Forum. N.d. Countries and their cultures: Turkey. Web.
Dickmann, M., 2008. International Human Resource Management: A European Perspective. NY: Routledge. Web.
Harzing, A. W., and Ruysseveldt, J., 2004. International human resource management. CA: SAGE. Web.
Hofstede, G., N.d. Geert Hofstede Cultural Dimensions. Web.
Jackson, T., 2002. International HRM: a cross-cultural approach. NY: SAGE. Web.
Lindsay, S., 2004. Issues of effective repatriation: a model and managerial implications. SAM Advanced Management Journal. Web.
Moran, R. T., Harris, P. R., and Moran, S. V., 2007. Managing cultural differences: global leadership strategies for the 21st century. MA: Butterworth-Heinemann. Web.
Nolinske, T., 2004. International HRM Challenge. Web.
Tayeb, M. H., 2005. International human resource management: a multinational company perspective. Oxford: Oxford University Press. Web.
Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.