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Solution
1.1 Contextual factors of an international organisation. 2
1.2 Drivers and Benefits of Employment in An International Context 3
1.3 Convergent or Divergent Approaches. 4
3.1 function of people’s practice in an international context 5
3.2 practices and policies that are shaped by the international context. 7
2.1 Factors to Consider When Selecting and Resourcing International Assignments. 8
2.2 Variation of people’s practices. 9
4.1 Reasons That Companies Use Expatriates for International Working. 13
Task One-Journal Article
Section 1
1.1 Contextual factors of an international organisation
There are several broad contextual factors that all international organisations must consider. One is cultural differences between regions. Aspects like societal norms, values, and common practices can vary greatly depending on location. CIPD (2023) point out that an organisation needs strategies to respect diverse cultures while maintaining a unified vision and management approach. The rationale of this is that international organisations operate in a highly competitive business environment which is broad as opposed to when operating in local market.
Regulatory environments present another key contextual element. Various countries have distinct laws regarding privacy, employment, trade, and other issues that companies must navigate (Smith, 2023). Ensuring compliance demands awareness of regulatory landscapes in all areas of operation. Adapting policies and processes accordingly is crucial.
The political and economic stability of nations is an additional important factor. Volatility in these domains can disrupt business activities and endanger employees. Careful evaluation of country-specific stability, risks, and macro-level trends is necessary for long-term planning and investment decisions (Perry, 2019). Mitigation approaches like diversification and regional support structures can offset potential instability impacts. Also, technological infrastructure is a further contextual issue internationally. Access to tools and connectivity strengths can differ vastly between locations. Building global systems integration while catering to local IT realities poses challenges. Unified platforms are important but must work seamlessly across borders.
The case study gives insights into how Terra-Wide addresses these contextual considerations successfully. When expanding, the company evaluates economic and political stability to gauge risks in new markets. It also diversifies its portfolio across regions as a risk mitigation strategy. Cultural factors are accounted for through benefit programs and flexible working arrangements adapted to societal norms worldwide. These localization efforts have clearly aided employer branding and talent acquisition.
Standardising core processes and technologies via global systems allows strategic HR insights to strengthen international operations coordination and reporting further. In summary, Terra-Wide’s contextual-aware people management approach of balancing global integration with local adaptation seems core to its continued growth and reputation for international HR excellence.
1.2 Drivers and Benefits of Employment in An International Context
There are several key drivers for companies to employ an international workforce. One main factor is access to talent. By expanding employment globally, organisations open themselves up to a far larger, more diverse pool of job applicants. According to Group, M. (2023) this allows them to recruit the best people regardless of nationality or location. Particularly for roles requiring niche or hard-to-find skills, an international search radius is invaluable.
Another driver is proximity to markets. Employing locally in the regions and countries where a company operates allows for deeper market knowledge and understanding of customer needs. Local hires can establish strong connections and business relationships within their own communities. This enhances opportunities for market expansion, partnerships, and serving customers with localized offerings.
A further motivation is cost advantages. While setting up operations internationally requires upfront investments, ongoing cost benefits can emerge over the longer term. Labor costs vary significantly between locations, and employing in lower-cost regions can reduce operational expenditures (Danielson, 2016). This improves profit margins and competitive positioning. The cross-border flow of work allows leveraging global differences in salary norms and regulations. While Terra-Wide does not provide salary specifics, it can be inferred that employing locally in different locations reduces Terra-Wide’s operational expenditures long-term compared to fly-in/fly-out staffing models or outsourcing. By leveraging varied labor markets, they improve margins on developments internationally.
For multinational companies, an internationally dispersed workforce yields diverse benefits. A global talent pool brings new cultural perspectives and experiences operating across borders. This exposes organisations to varied ideas and working styles that can spark innovation (Gibbons, 2022). International employment also builds wider brand recognition worldwide as the company is seen investing and creating opportunities in multiple regions. The case indicates Terra-Wide tailors its flexible working policies and benefits programs to suit different social norms worldwide.
Employing locally supports community development and economic growth in the areas that companies serve overseas. This generates positive stake/holder relationships and improves reputation as a responsible corporate citizen. Workforces that mirror customer demographics better understand diverse audience needs too. Terra-Wide’s drivers for worldwide recruitment include gaining expertise intimately familiar with new markets, cost mitigation through varied labor cost bases, fostering innovation by leveraging cultural diversity, and strengthening partnerships through community investments – all of which support sustainable international expansion. Their contextual approach reaps clear competitive advantages.
1.3 Convergent or Divergent Approaches
When operating on an international scale, people management strategies exist along a spectrum between convergent and divergent approaches. A convergent philosophy prioritises standardised, centralised policies applied uniformly worldwide as evidenced by Smerek et al. (2019). The goal is consistency in areas like global core values, processes, technologies and benefits. However, such complete standardization risks missing cultural nuances between regions.
On the other hand, a divergent perspective emphasises tailoring all aspects of people practices locally. This maximises cultural sensitivity by allowing full adaptation to differing norms, laws and preferences in each market (Parry et al. 2013). But an overly divergent model tends toward complexity as consistency is sacrificed. Managing compliance and aligning strategies becomes more difficult across many varied systems. Most successful multinational companies find harmony between these perspectives through balanced convergence and divergence. The case of Terra-Wide provides an example of how to thoughtfully blend both viewpoints. While striving for convergent practices like unified HR technologies and reporting platforms globally, they complement this with divergent flexible working and benefits customised per area.
By thoughtfully selecting which areas require consistency versus localisation, organisations can leverage the strengths of each approach. For Terra-Wide, core HR infrastructure and processes benefit from platform standardisation, whereas employee-facing policies thrive with cultural considerations. This blended model supports operational excellence through aligned systems, balanced with localized employee experiences. The results speak to the strategy’s success – Terra-Wide enjoys a strong international reputation among peer organisations. A purely convergent uniformity risks overlooking nuanced needs between regions and stifling local opportunities. However, full divergence forsakes shared vision and integration benefits across borders. Terra-Wide demonstrates how considering dual viewpoints leads to optimised people management supporting sustainable global growth.
Section 2
3.1 function of people’s practice in an international context
There are several core functions that effective people practice serves for organisations operating globally.;
Cultural integration– This is a vital function that people practice serve when operating globally as evidenced by Jadhav (2016). With employees from diverse backgrounds, fostering shared organizational values and ways of working helps unite the workforce. Terra-Wide strives for standardised core HR technologies and processes worldwide to culturally align staff. However, they recognise not all policies easily translate between regions. By localising certain practices, Terra-Wide respects nuanced cultural norms while still pursuing integration. This balanced approach cultivates an international culture where all staff feel included.
Talent attraction- This is another core function, as competition for top international skills is intense. A large global talent pool exists, but companies develop competitive value propositions to recruit the best candidates regardless of nationality or location (Chellappa, 2023). Terra-Wide demonstrates this through customised benefits programs and flexible working arrangements adapted for cultural preferences in different markets. By localising their employee offerings while maintaining consistency in areas like technology, they elevate their employer brand profile internationally.
Compliance with varied employment laws across countries is an additional important function for people practice to fulfill. Regulations impact areas such as data privacy, compensation, and legal responsibilities as an employer (Mobility HR, 2023). As the case illustrates, before expanding Terra-Wide conducts thorough analyses of economic trends, political stability, and other compliance-related country dynamics. This regulatory diligence demonstrates a commitment to navigating complex legal landscapes, thus mitigating risks as they establish new operations overseas.
Organisational agility is a further function that global people strategies foster. A diverse, multicultural staff introduces varied skills, viewpoints, and innovative problem-solving approaches (Singh et al.2013). While the case does not provide inner workings, it is implied that Terra-Wide cultivates an agile culture through balancing localised representation with centralised coordination and reporting. Their culture of adapting flexibly yet strategically to local contexts both maintains consistency and sparks new ideas applicable internationally.
Leadership development across borders is another crucial function, as future executives require cultural dexterity and global experiences. While specifics are not outlined, Terra-Wide’s exemplary international reputation hints at robust development programs that nurture top talent no matter their nationality. International assignments, customized coaching, and rotations likely feature heavily.
Building local community relationships is an additional important function that further distinguishes best-in-class companies. Investing in employment and economic growth wherever they establish offices helps foster essential stakeholder partnerships and positive external perceptions of corporate social responsibility (LinkedIn, 2023).
3.2 practices and policies that are shaped by the international context
Operating globally exposes organisations to a wide variety of cultural, regulatory, social, economic and political factors that influence appropriate people management approaches as evidence by CIPD (2023a). As Terra-Wide demonstrates, flexibility and localisation are paramount. A one-size-fits-all mentality fails in such a diverse environment.
Cultural norms especially impact practices. Benefits, like those Terra-Wide customises, must reflect varied social priorities. Work-life integration also considers cultural expectations, whether prioritising family, spirituality or career progression. Even areas like leadership and communication styles warrant sensitivity to differing cultural lenses. Standard practices risk appearing tone-deaf without localisation.
Regulations too shape what is feasible. Privacy laws determine how data can be collected and shared internationally. Compensation must navigate tax codes, minimum wages and currency values (The World Bank, 2023). Health and safety standards diverge between developed and emerging markets, necessitating tailored protocols. Extensive compliance knowledge guides strategy.
Workforce demographics also impact effective policies. Religious observances and language differences require accommodation in absence management, documents and tools. Family structures inform parental leave and childcare support (OECD, 2021). Community relationships and recruitment partner selection localise outreach efforts.
Political and economic landscapes further influence choices. Geopolitical tensions may hinder global mobility, inspiring virtual or local hiring as evidenced by KPMG (2023). Retention strategies pivot between mobility, pay or learning investments based on stability. Expansion decisions consider macroeconomic outlooks and country risks.
Even infrastructure impacts work arrangements. Internet access influences work-from-home viability. Time zones dictate meeting schedules and support coverage. Office availability governs real estate footprints, whether singular global hubs or dispersed local sites.
Terra-Wide’s success stems from the nuanced understanding that flexibility, not uniformity, best respects myriad contextual factors. One approach risks marginalising some contexts. Careful consideration of cultural, regulatory and situational complexities guides balanced, inclusive policies harmonising localisation with global consistency.
Section 3
2.1 Factors to Consider When Selecting and Resourcing International Assignments
Candidate Motivation- A candidate’s enthusiasm for an international opportunity is
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