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Solution
Table of Contents
2.0 Major Alternative International Organisational Forms. 2
3.0 Ways in which organisations operate and trade overseas 3
4.0 Organisations expand their activities internationally. 4
TASK 2- People Management Article. 5
2.1 Appraisal of institutional arrangements in different countries. 6
2.2 Analysis of research concern ways in which workplace cultures vary around the world. 7
3.1 Justification of diversity and inclusion in international contexts. 8
3.2 What would be included in an international staffing strategy. 11
4.1 Influence of effective communication practice in international organisations. 13
4.2 Assessment of effective management of performance in international organisations. 14
4.3 Justification of need for flexible working initiative in international organisations. 16
Task 1: Factsheet
1.0 Introduction
People management in an international context is comprised of a lot of uncertainty. The uncertainties have particularly worsened and complex owing to COVID-19 pandemic. For this factsheet, the audience is the managers offering insights on complexity in people management in an international context. This factsheet is titled “A review of major alternative international organisational forms and their consequences for the management of people”.
2.0 Major Alternative International Organisational Forms
As L&D professionals, many of us work for organisations operating across borders in an increasingly global business landscape. According to CIPD Report (2014), this international context brings both opportunities and challenges when it comes to managing people. There are a few major alternative forms that international organisations can take. They include;
Multinational Corporation (MNCS) – The first is the multinational corporation, where business functions are coordinated centrally but operations in each country are handled as quasi-autonomous units as evidenced by Chen (2022). This allows some adaptation to local markets but can still be challenging to integrate strategies globally.
Consequences in management of people- Multinational corporations can struggle to implement global strategies consistently due to stronger local country autonomy. This makes people management, performance evaluation and succession planning more complex across borders.
Transnational Corporation – This form sees business activities planned, implemented and controlled on a worldwide basis as an interconnected system. While aiming for tighter integration, this comes with increased complexity and difficulties balancing local responsiveness with corporate priorities.
Consequence in management of people- According to Kordos & Vojtovic (2016), transnational corporations require highly standardized and centralized processes for coordinating talent development, mobility and compensation worldwide. This reduces local flexibility but facilitates international career paths and benchmarks.
Born-global startup – Miron (2022) point out that these organisations internationalise from inception, often leveraging remote work and digital platforms. This provides scale and talent access but also strains traditional structures of control and coordination. Clear communication as well as flexible, trust-based management becomes paramount.
Consequence in management of people– Born-global startups faces unique challenges in hiring, onboarding and engaging talent remotely without established international infrastructure. Significant investment is needed in virtual collaboration tools, training and cultural adjustment support.
Regardless of form, managing a diverse, global workforce comes with unique cultural and regulatory considerations. According to CIPD (2017), Organisations are increasingly adopting global talent management strategies to source, develop and deploy talent worldwide. At the same time, localising practices like compensation, legislative knowledge and communication styles helps engage staff across borders.
Policies around topics such as parental leave, vacation time and benefits also vary greatly between countries. Taking an inclusive approach respects these differences while strengthening common values of fairness and wellbeing. Overall, an international mindset of openness, empathy and collaboration serves managers well in today’s interconnected business landscape.
3.0 Ways in which organisations operate and trade overseas
One key method is through exports– This is where companies sell goods and services produced at home to foreign customers abroad as reported by McDonald (2022). This allows organisations access to new markets without establishing a physical international presence. However, it also means the organisation has less control over distribution and branding in other territories. Reliance on third-party importers can introduce layers of complexity.
A second approach is to set up foreign branch offices or subsidiaries. According to Georgev (2021), this provides greater control over sales, customer service and logistics in other countries. However, it requires more investment in staffing these overseas locations. Organisations need robust processes for tasks like legal compliance, employee management and financial consolidation across multiple international sites. Establishing branches is a larger long-term commitment and exposure to political or economic instability in host nations.
Increasingly common tactic is e-commerce exporting through online sales platforms is a third strategy as evidenced by Chen & Zhang (2015). The rise of global digital marketplaces has lowered barriers for SMEs and startups to participate in international trade without physical foreign infrastructure. Cultivating an online global customer base through websites with multilanguage functionality remains challenging though. Digital trade also opens organisations to cyber risks, data compliance issues and difficulties fulfilling or servicing orders internationally.
Regardless of the international engagement model, non-tariff trading costs must be carefully managed. These include regulatory paperwork, cultural translation, currency risks, cross-border logistics and variations in technical standards or consumer preferences overseas (ESCAP 2023). Accessing foreign expertise, incentivising a remote global workforce, and understanding national cultural contexts are also vital for organisations conducting any aspect of their operations externally.
4.0 Organisations expand their activities internationally
One significant approach for organisations seeking international expansion is through exporting. According to Indeed Editorial Team (2021), by selling existing products or services abroad, often through local distributors in key foreign markets, organisations can grow revenue without a major upfront commitment. However, exporting alone provides limited control over branding and the customer experience in other nations.
Another option is direct foreign investment by establishing a permanent physical presence overseas through mechanisms like wholly-owned subsidiaries, joint ventures or acquisitions, according to HAYES (2023). This allows for direct sales, customer support and localised production. Nevertheless, setting up foreign operations requires significant capital and managing compliance becomes more complex.
A third pathway is through contractual agreements like licencing or franchising. According to Hayes (2021), this permits organisations to leverage local partners’ regional knowledge and infrastructure without as much financial risk. Control is relinquished in exchange for lower establishment costs. However, oversight is also reduced which may impact quality standards.
Finally, organisations are increasingly using digital technologies to expand globally in innovative ways as evidenced by CIPD (2021). The rise of cloud computing, e-commerce platforms and remote work tools enables some businesses to service international clients virtually through websites available in multiple languages. While this lowers logistical barriers, virtual expansion still demands adept digital marketing across many cultural audiences. International growth therefore, necessitates strategic consideration of an organisation’s objectives, risk tolerance, resources and the characteristics of target overseas markets. Blending traditional and virtual expansion approaches as appropriate may optimise global reach for many enterprises wishing to competitively extend their activities and brand presence on a worldwide scale.
TASK 2- People Management Article
Introduction
In contemporary business environment, with existence of demand for internationalizing their operations, a set of challenges and issues are encountered. As evidenced in CIPD (2023a), the comparative people management approaches are varying in various nations with people practice professionals facilitated with relevant knowledge and skills to achieve their set goals. This is by actively managing entire employees and employment practices while developing sustainable management initiatives. Hence, taking this background information into account, this report intend to evaluate the extent in which people management practices are distinct in different countries with people management initiatives demanded to be prioritised in an entity.
2.0 Section 1
2.1 Appraisal of institutional arrangements in different countries
The following are ways in which people management practices vary globally and the implications for HR/L&D.
According to Lina (2018), People management looks rather different when viewed through an international lens. Practices that may seem standard in one country can be unheard of in another. This global diversity presents both opportunities and challenges for organisations operating across borders.
Performance appraisal processes exemplify cultural variations. While annual reviews are common in Western firms, opinions on open feedback and direct confrontation vary greatly elsewhere. In some Asian nations, team-oriented appraisals are preferred to avoid loss of face as evidenced by Kawamura (2015). HR must adapt systems sensitively or risk disengaging certain nationalities.
Training and development also takes on local nuances. Formal qualifications hold more weight in countries like Germany compared to emphasis on on-the-job learning prevalent in Latin America, for instance as reported by ILO (2018). Digital/virtual training popularity diverges too. Tailoring content and delivery styles to the characteristics of multi-national learner audience’s better ensures relevance and participation.
Welfare and benefits likewise differ significantly by country according to factors like average income, religion and regulation. While generous parental leave may be expected in Nordic workforces, health insurance takes priority elsewhere. Standardising too rigidly risks dissatisfying mobile talent accustomed to hometown provision. Tailored international packages balancing local norms with corporate principles prove fairest.
According to Forth et al (2016), even employee representation shows territorial variation. Powerful trade unions fundamentally shape labour relations in parts of Europe but remain sparse elsewhere. HR must proactively consult workforces where union presence is low to maintain high engagement standards globally. Adhering to local employment law also requires nuanced understanding beyond basic compliance. National legislation encodes broader cultural workplace expectations that international firms should reflect for community acceptance and retention of host-country skills.
To exchange best practices, HR/L&D must first acknowledge the backdrop of diverse national people management contexts within their own organisations. Only then can sensitively localised processes harness the opportunities of global talent and mobility while respecting local identities.
2.2 Analysis of research concern ways in which workplace cultures vary around the world
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