Essay Example on International HR Management

Q1. Human Resource

Demonstrating the ability to critically weight the consideration for staffing policies for international HR management using EPG model

It is important for every firm to highlight the strategic profile regarding International Business Strategy better. The EPG Model is one of the most useful frameworks that an organization can incorporate in its staffing policies. The model comprises of three components namely Ethnocentrism, Polycentrism, and Geocentrism. The creators of the EPG Model included a fourth element Regiocentric later on to form a more inclusive model called the EPRG model. This firm would work well with such a model in its strategy as it looks forward to opening the three new branches. The company will be able to recognize and comprehend its particular focal point since the model aims to thoroughly analyze how the organization is oriented and its ability to make the right decisions to move forward.

Critically Weighing the Advantages and Disadvantages

There are many advantages associated with employing the EPG model when hiring staff for the international business. Geocentric hiring ensures the organization employs the best employee for the particular job regardless of where they hail from. This model recommends that the firm uses its best resources wherever they are needed irrespective of the geographical gap. However, it requires a large company since a small business may be unable to put together the massive global frame that would permit the business to employ a geocentric model truly. The ethnocentric model strategy hires the best resources from the host country to tap in their belief of their superiority, trustworthiness, and reliability as compared to their foreign equivalent. Conversely, the employees might take the attitude overboard under-perform intentionally while working for an international firm. This attitude also impacts negatively on the seamless running of the organizations business.

Weighing the Corporate Culture considerations of a HR Policy

Corporate culture enables a company to build a high-performance workplace which backs up the implementation of the business strategy. The human resource is required to intensify their ability at enforcing culture by defining the appropriate ways for the staff to cogitate, function, and conduct themselves within the organization. There are four ways of achieving HR culture in an organization, and they include through performance management programs, recruiting and selection efforts, training and development attempts, and pay systems. Remuneration systems and gift packages are one of the most significant methods that the HR can employ to stimulate the employees that perform in the appropriate ways. The firms pay system should compensate not only the right job outcomes but also the well-behaved employees to promote competition within the workplace.

The HR is encouraged to hire resources with more than just the required proficiency and capabilities through talent acquisition approaches (HR.com). This can be achieved by using questions that center on establishing the cultural fit of each new employee. This method will ensure that the organization employs staff that fits its cultural profile. Finally, the organization can impact culture through training and development programs that assist the workers in reasoning, acting, and comporting themselves in the right way (HR.com). The HR should be allocated with enough resources in their training and development budget for efficient accomplishment of employee development and promotion of teamwork at the workplace.

Recommendation

I recommend the company to employ the EPG model framework when creating a staff hiring policy for the three new branches in London, Rome, and Budapest. The HR should apply the ethnocentric, geocentric, and polycentric factors to their advantage and consider the above elements in impacting the corporate culture to establish a sound basis from the onset. I ask of the organization to send its best resources during its entry in the international markets and hire the ethnocentric employees in their respective host countries to pick up from the experienced staff as they head to other locations.

Q2. Globalization

Critical evaluation of the Counterpoints of Globalisation

The precipitously increasing globalization has become a subject of discussion among the business executives, academics, and government officials dealing with International Business. The following is a critical examination of the issues linked to the globalization of the world economy and which affect the making of decisions on international strategy and the management of the existing international operations. Globalization has resulted in the emergence of worldwide financial markets and improved access to external funding national, sub national and corporate borrowers. It has impacted the economy whereby the global common market has been recognized, influenced by the freedom of trade of goods and services. Global environmental challenges such as cross boundary air and water pollution and global warming that could not be addressed without international cooperation have received attention as a result of globalization (Karunanithi, 2014). The sharing of information in the world stage has become very comfortable because of globalization which has facilitated the flow of information between remote geographical regions. It has led to the political globalization of the world whereby leaders have created a body that controls the connections among the countries while securing the social and economic rights developing from globalization.

Critical Weighting of Offshoring Policies

Offshoring refers to the transfer of professions and production processes to a foreign nation (Bottini, Ernst, & Luebker, 2007). The recent reduction in the costs of communication and transport and the great developments in information technology have led to a dynamic shift in the outsourcing phenomenon. It has enabled the movement of conventional production phases which is termed as material outsourcing and has also permitted the transfer of immaterial process which is referred to as service offshoring. The addition of developing nations in the global production system has empowered organizations to gain profits from the low labor costs offered in the developing countries. Offshoring has both advantages and disadvantages for the business involved. It may result in job losses in the origin country due to the finding of cheaper labor abroad while at the same time applying its expertise to develop another nation. However, offshoring leads to benchmarking of the production system in the trainer countries which leads to the creation of innovative businesses to cater to the rising needs of the visitors (Bottini, Ernst, & Luebker, 2007).

Critical Discussion of the impact to communities that have seen jobs moved offshoring those communities that have received offshoring contacts.

Several matters about the welfare advantages or losses in developed and developing nations have been raised due to offshoring. Some firms have been reported to substitute the local workers with foreign workers after outsourcing some production phases to foreign countries thus leaving the domestic residents jobless. Developing countries are the primary beneficiaries of offshoring production activities which have facilitated the development of new activities and businesses. Ghose (2004) argues that a crowding-out effect that may replace the native investment can be generated by the foreign investment, instead of increasing the overall fixed capital development. This is mainly experienced by small and medium-sized companies, which are the primary form of employment in most developing nations. Outsourcing of services and resources has externalities such as the upgrading of skills, improving wages, and technology spillovers to domestic firms. On the other hand, when the offshoring is restricted to dealing with the assembly of transitional imports for re-exportation, less positive externalities are expected. Issues of increasing income inequalities have been linked to relocation where the higher-skilled employees earn more wages than the ordinarily skilled employees which make up the majority of the labor population.

Q3. Culture

Devised Plan of Activities

The following is a list of plan of activities devised for the entry of a frozen food processor in Libya:-

Investigate the political climate of the country

Identify the regulations and laws for international firms setting up their firms.

Identify the country's culture and the main frozen foods that they consume to launch new product lines.

Select the special team of professionals in the different classes of business operation to ensure the organization enters the market soundly and steadily.

Identify some of the performing personalities in the processed frozen foods niche market in Libya and look to hire them.

Choose the best location for setting up the first and subsequent branches according to the reception of the firms services.

Critical Weighing of the SLEPT Analysis when making Cultural Considerations

The PESTLE analysis of an organization is very critical when making cultural considerations for the firms entry in a foreign market. The company will be required to make a study into the cultural components such as religion, social, and language structure and views. Language barrier may pose challenges when making an entry into foreign markets, although hiring the qualified locals for several posts may make it easier. The in-depth comprehension of a culture requires a good level of linguistic skills. The organization should be prepared to appreciate the differences in religious practices and beliefs when venturing into a market abroad. Also included among the considerations are the distinctions in social relationships, perceptions, and status to enhance the smooth penetration into the Libyan market.

Highlight of the Different Cultural Sensitives that need to be taken into Consideration

The following is a description of the cultural sensitives identified in the Libyan market for an entry level international firm. The majority of the countrys population is Islam thereby meaning it would be a bad idea to process anything with pork as it would only appeal to a small market. The dress code of the representatives should respect and rhyme with the ideologies of the Muslim culture to blend in well with most of the locals. The firm can operate for seven days in a week as is synonymous with the Muslim culture, unlike the Christian majority nations which close businesses on Sundays. The company should also take into consideration the Ramadhan period and come up with a strategy that will counter the achievement of its goals despite the anticipated low intake of its products.

Incorporation of Halls high and context understanding and Hofstedes cultural dimensions

Geert Hofstede (1980) and Edward Hall (1976) developed models for the organization and recognition of cultures. The investigation led to the production of five scopes applicable to the cultures of the world. The ranges include Power-Distance, Feminine-Masculine, High or Low Context, Uncertainty Avoidance and Collectivist-Individualistic dimensions. The main difference in High and Low Context dimensions is the significance that each culture posits on the context against the actual message. The high context culture relays the primary importance to the incentive surrounding information and secondary importance to the information itself and vice-versa to the Low context culture. The uncertainty prevention culture dimension determines the degree to which a society willingly welcomes and avoids the unknown where cultures with the high uncertainty avoidances value order, structure, and predictability. The Feminine-Masculine...