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International and comparative HR
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International and comparative HR1 Contents EXECUTIVE SUMMARY...................................................................................................................2 INTRODUCTION.................................................................................................................................3 ANALYSIS...........................................................................................................................................3 RECOMMENDATIONS.......................................................................................................................8 CONCLUSION.....................................................................................................................................9 REFERENCES....................................................................................................................................10
International and comparative HR2 EXECUTIVE SUMMARY This report comprises the support mechanisms to be put by Kone to assist the Finnish expatriate. Kone offers elevators, escalators and automatic building doors along with the unique maintenance and transformation solutions. The company adds value to the life cycle of any building. Kone is enabled with the thorough understanding of equipment and customer requirements making sure that the existing equipment are running smoothly throughout the process. The MNCs send managers from the home nation to foreign nations. Sometimes it is done for the development of the managers so that they can attain experience in the international operations of the organization. The managers are also sent to the host nation so that a company can exert more control over the subsidiary. Kone Inc. is interested in referring to a manager from the Helsinki office to handle one of the subsidiaries in Shanghai on a 3- year assignment. The report has covered the issues faced in pre-departure, on-going sustenance and repatriation. Pre-departure and during stay at Shanghai includes components and effects of the pre-departure training along with the advancement of the staff by the international assignments and trends in the international training and development. the components of effective pre-departure includes cross-cultural insight, preliminary visits, language instruction, and day-to-day assistance. The post-assignment embraces re-entry and career issues, repatriation process, individual reactions to re-entry, responses by the MNE and planning of the repatriation program.
International and comparative HR3 INTRODUCTION Kone is a leading player in the elevator and escalator industry. The company is specialized in automatic doors, elevators, escalators, elevator transformation, and escalator upkeep. The mission of Kone is to enhance the flow of urban life. The company makes the journey of the people safe, appropriate and reliable between the buildings. Kone operates in over 60 nations worldwide and serves more than 450,000 customers. Kone is headquartered in Helsinki, Finland. The company is having a global network of approved distributors. Kone is listed on the Nasdaq Helsinki Ltd (Kone Corporation, 2019). Finland. Earlier MNCs (Multi-National Corporations) have been overwhelmed by the difficulty of the premature arrival of expatriate managers because of the incapability of adapting to the culture of the host nation. It resulted in the wastage of time, slowing down projects and work, loss of productivity and financial loss. This report is all about the pre-departure, on-going sustenance and repatriation of the manager of Kone. ANALYSIS The national culture is the framework of norms, beleifs, behaviour, customs and the values to be shared by the people of a nation. The national culture even signifies to the religion, ethnic, language and racial identity. Shanghai is greatly appealing for the expats. The business culture of Shanghai is quiet beneficial for the expats interested in working. The fundamental values high in the culture of Shanghai are punctuality, formality, hierarchy, seniority and indirectness. Components of effective pre-departure training The four components of effective pre-departure training for the manager are cross-cultural insight, preliminary visits, language instruction, and day-to-day assistance. An employee is required to have cross-cultural insight, especially when entering into an overseas location with no awareness (Tenzer and Schuster, 2017). As a person without environmental knowledge can experience austere culture shock. The culture is all about the characteristics of a group of people who are alike. As a measure of pre-departure training, cross-cultural insight should induce insight into foreign policies and practices. The cross-cultural awareness can help to Kone in reducing anxiety of vague situations (Rabin, et al. 2017).
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International and comparative HR4 The preliminary visits help an expatriate in the awareness of the host nation in the stage of pre-departure. In the preliminary visits, an expatriate physically visits the host nation and genuinely gains first-hand experience. It evaluates the assignment compatibility in a more accurate manner. The culture of the host nation can be experienced in the context of business through preliminary visits. It leads to the awareness of the culture. For the purpose of awareness, the preliminary visits are required to be specific and well-organized (Fee and McGrath-Champ, 2017). It should be different than the tourist experience and cost should be analyzed versus the benefit. English is a more prevalent language when it comes to business transactions. The non- English nations also prefer to acquire English as a second language to make sure they can connect with other nations (Andresen, Goldmann and Volodina, 2018). Kone should prefer to use English is Shanghai to ignore translation issues. On the other side, the manager of Kone should be aware of the words in Helsinki have a different word used in Shanghai. It relates to the culture of a totally two different nations. This can be helpful in adjusting the local environment of Shanghai. As a part of Day-to-day aid, intercultural communication training is critical for Kone. The intercultural communication skills are the skills needed to communicate, share information with individuals of other nations. The distinct skills and non-work influences are required to be undertaken by the expatriate manager of Kone before arriving in the host nation. It assists before and during the assignment to be conducted in the host nation. Kone is even required to have great involvement in making sure that the manager is secure and healthy after relocation (Yu and Chang, 2017). It results in a positive return for the company. The efficiency of pre-departure training The pre-departure training briefs what to expect while living and working abroad. Pre- departure training is effective in comprehending the clear role of the expatriates. The training places out the main goals of the assignment which helps employees in meeting expectations. The pre-departure training can be used by Kone in improving language skills and along with the better integration (Abdullah and Jin, 2015). A detailed overview of the cultural differences can be known between the home and the host nations. The training has a great role in developing emotional flexibility to admit unused behavior and values in an efficient way. The language accesses to the information. The pre-departure training to be enabled by
International and comparative HR5 Kone can outline the in-country poaching to be expected by an expatriate. It can considerably enhance the overall success of working in a foreign nation (Kang and Shen, 2017). Developing staff through international assignments The staff can be developed through management development and organizational development. The management development can assist Kone as managers can attain global experience which backs to career advancement. Kone can advance through a pool of skilled workers on which to draw. On the other side, organizational development can develop to the manager through the stock of exchange, skills, and capabilities. It leads to global mindsets and the expatriates can have direct control. The staff can be developed through knowledge transfer (Collings and Isichei, 2018). It has been perceived that international organizations suffer due to lack of talent. It is one of the largest risks faced by MNCs. The manager of Kone can develop skills through attaining knowledge in the given period of time. Attaining knowledge in advance can contribute to operative pre-departure training. The staff can also be developed by maintaining relationships at the international level. Kone can do anything \ when it comes to maintaining relationships. It is also helpful in developing new clients, functioning with the local government and constructing trust with the colleagues (Morley and Parkinson, 2015). Trends in international training & development The training represents activities which have a role in teaching the employees in order to perform better the present job. The training and development can assist the manager of Kone to adjust as per the demands and working in Shanghai. The expatriate manager of Kone will be offered organizational social support incorporating the support of supervisors, co-workers, and the organization. The trends in the international training and development deliberated are personalization, gamification, bite-sized support resources, robust reports, and analytics, self- paced online training, virtual and augmented reality (Hofacker, et al. 2016). Kone focuses on the improvement areas through individualizing online training contracts. It enables the pre- assessment which h role in bridging the gap. The bit size support resources can elucidate the difficulty and construct skills on the spot. The robust reports and analytics can be used by Kone to track the performance of the staff to continuously improve. The self-paced online training is one of the topmost trends in international training and development. As per this training every employee requires different types of training resources (Noe, et al. 2017). It comprises fixing schedule, advancing target goals and pursuing out online training resources
International and comparative HR6 autonomously. The gamification is used when a manager is not able to earn a badge or develop to the next level. Finally the virtual and augmented reality has role in transmuting the online training experiences by placing manager into the middle of the action. This way manager can attain more real-world experience in the risk-free environment of Shanghai (Cascio and Boudreau, 2016). Re-entry and career issues The repatriates can experience re-entry shock and some are even likely to exit the company. When it comes to the job-related factors, the manager can suffer from career anxiety in the form of no-post assignment guarantee, workplace changes, and isolation. The manager can make adjustments for the work like re-entry position, employment relationship and lessening experience (Schmid and Wurster, 2017). The manager might have to cope up with the new role demands. It can even result in loss of status along with the pay. In terms of the social factors, the manager has to make adjustment in the family and have to maintain social networks (Bucker, Poutsma, and Monster, 2016). The social factors are considered to be putting effect on the career of the manager. Both job-related factors and social factors impact repatriate adjustment. Repatriation process The repatriation process comprises training, physical transfer, transition, and readjustment. The preparation in the repatriation process of Kone encompasses advancing plans for the forthcoming and gathering information about the new position. The physical relocation is all about eradicating the personal effect and breaching links with friends and colleagues. It also comprises traveling to the upcoming position. The transition settles the temporary accommodation where required arrangements are done to conduct the administrative tasks of the organization (Baruch, Altmanand Tung, 2016). The readjustment to be enabled by Kone cop up with the changes. Individual reactions to re-entry The individual reactions to re-entry are realized in the form of work modification, coping with innovative role demands, career anxiety and loss of status and pay. As per the work adjustment, a manager will be in the re-entry position. The international experience can be devalued and there will be more career expectations by the managers. In coping up with the new role demands, there can be individual reactions in the form of role behavior, clarity,
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International and comparative HR7 discretion, and conflict (Van Gorp, et al. 2017). Finally, loss of status and pay can be realized in the form of independence, accountability, and drop in the housing circumstances and less pay in the entire terms. Responses by the MNE Kone can response in the form of staff availability, return on investment and acquaintance transfer. The staff availability is about how the manager will be handled is acute. The return on the investment is defined in the terms of the expatriation for the manager. The gains are accrued through the manager. Kone can identify and transfer knowledge in the form of one- way activity or person bound. The company makes sure that the expatriate remembers the important decisions to be made at repositions and promotions. Kone is likely to maintain contact with the expatriates through the assignment for three years (Tao, et al. 2018). Designing a repatriation programme The repatriation programme comprises the stages such as pre expatriation, during assignment, preceding repatriation and post repatriation. The pre-expatriation includes the strategies like agreement delineating the type of position expatriates are to be placed upon the repatriation, contract concerning the extent of the stay in the host country and keeping the post vacant back at home till the expatriate come back. The stage of during assignment includes strategies like constant communication with expatriate, and visiting headquarter when on vacation in order to sustain visibility. Preceding repatriation comprises the strategies such as career guidance within the 6- 12 months before the assignment ends. It is to make sure that all the factors of the repatriation process are apparent. Such factors are to be comprised of the Kone’s policies in concern to the shipping of the household goods; travel reimbursement leaves period and contact information of advisor. The post--repatriation includes conducting training seminars after repatriation to assist returnees with the culture shock and financial counselling along with the tax help. Reassurance to ensure that the organization values the global experience and reorientation program concerning the changes in the policies, strategies, personnel, and practices of the Konesare also the strategies to be taken under the post- repatriation.
International and comparative HR8 RECOMMENDATIONS Kone is required to have a compelling purpose and appropriate person. The company should have a clear organizatioanl requirement along with the compelling reason which cannot be met by local hires in Shanghai. Kone is recommended to offer culture training to the manager so that he can understand the norms, beliefs, cultural values and behavioral patterns of the host nation in advance. The company can brief on the geography, history, and economy of the host nation along with the mechanism behind the culture. Kone can even organize training, language courses and workshops during the assignment. The training is enabled for the short period of time. It can result in forming better understanding of the host culture. It will equally add to the accomplishment of the assignment (Sanchez-Vidal, Sanz-Valle, and Barba- Aragon, 2018). Kone is recommended to appoint supporting staff in Shanghai as a helper to the manager. This buddy program will offer more awareness in the organizational and local culture to the manager. It will result in enhancing the integration of the manager as expatriate and harmony. this way managers can know the negotiation tactics along with the marketing staretgies which vary from culture to culture. Add on, the Kone can offer rewards in the terms of the financial benefits and home leave. This way manager will be able to maintain contact with the family and known in Helsinki. It will also sort out the career planning purpose of the manager. The rewards can have an influential role in better job performance and motivation when coming back to the host nation. The life of the expats is seen with little accountability and several perks. Kone is recommended to assist family members of the manager during the whole expatriation process. For instance, the company can go for a spouse support network or cultural training can be organized for the complete family. The family memebers of the expatriates hould be supported during the expatriation procedure. On the other side, Kone is recommended to pay attention to the manager when he will come back to Helsinki. The manger should be offered better job opportunities to use the skills and knowledge to be attained in Shanghai. So that the manager does not feel culture shock in doing adjustment.
International and comparative HR9 CONCLUSION The manager to be send by Kone in Shanghai can adjust properly if he will be enabled with the effective pre-departure training. The training comprises cross-cultural insight, preliminary visits, language instruction, and day-to-day assistance. The Pre-departure training is effective in understanding the clear role of the expatriate. The management development and organizational development is effective in development of manager. it is helpful in attaining experience for the career advancement. The trends of the international training & development can help in focusing on the improvement areas. At the time of re-entry, manager can face issues in the home country but assistance to be provided by Kone can help in repositioning and promotions. The company should maintain contact with the manager through the assignment for three years.
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International and comparative HR10 REFERENCES Abdullah, D.N.M.A. and Jin, C.S., 2015. Determining the selection criteria for expatriates: Through the eyes of Malaysian HR practitioners. InProceedings of the Colloquium on Administrative Science and Technology(pp. 325-334). Springer, Singapore. Andresen, M., Goldmann, P. and Volodina, A., 2018. Do overwhelmed expatriates intend to leave? The effects of sensory processing sensitivity, stress, and social capital on expatriates' turnover intention.European Management Review,15(3), pp.315-328. Baruch, Y., Altman, Y. and Tung, R.L., 2016. Career mobility in a global era: Advances in managing expatriation and repatriation.The Academy of Management Annals,10(1), pp.841- 889. Bucker, J., Poutsma, E. and Monster, H., 2016. How and why does expatriation management influence expatriates’ employability?.Journal of Global Mobility: The Home of Expatriate Management Research,4(4), pp.432-452. Cascio, W.F. and Boudreau, J.W., 2016. The search for global competence: From international HR to talent management.Journal of World Business,51(1), pp.103-114. Collings, D.G. and Isichei, M., 2018. The shifting boundaries of global staffing: integrating global talent management, alternative forms of international assignments and non-employees into the discussion.The International Journal of Human Resource Management,29(1), pp.165-187. Fee, A. and McGrath-Champ, S., 2017. The role of human resources in protecting expatriates: Insights from the international aid and development sector.The International Journal of Human Resource Management,28(14), pp.1960-1985. Hofacker, C.F., De Ruyter, K., Lurie, N.H., Manchanda, P. and Donaldson, J., 2016. Gamification and mobile marketing effectiveness.Journal of Interactive Marketing,34, pp.25-36. Kang, H. and Shen, J., 2017. International Training and Development Policies and Practices. InInternational Human Resource Management in South Korean Multinational Enterprises(pp. 85-112). Springer, Singapore.
International and comparative HR11 Kone Corporation, 2019. Kone Share. Available from https://www.kone.com/en/investors/kone-share/[Accessed on 2/10/2019] Morley, M.J. and Parkinson, E., 2015. A practice with potential: expatriate cross-cultural training among Irish MNCs. InInternational human resources management(pp. 75-90). Springer, Cham. Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017.Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Rabin, T.L., DeCamp, M., Doucet, A., Elansary, M., Jacquet, G.A., Peluso, M., Sugarman, J. and Todd, T., 2017. Pre-departure trainingApproaches and best practices. InGlobal Health Experiential Education(pp. 73-84). Routledge. Sanchez-Vidal, M.E., Sanz-Valle, R. and Barba-Aragon, M.I., 2018. Repatriates and reverse knowledge transfer in MNCs.The International Journal of Human Resource Management,29(10), pp.1767-1785. Schmid, S. and Wurster, D.J., 2017. International work experience: Is it really accelerating the way to the management board of MNCs?.International Business Review,26(5), pp.991- 1008. Tao, F., Liu, X., Gao, L. and Xia, E., 2018. Expatriates, subsidiary autonomy and the overseas subsidiary performance of MNEs from an emerging economy.The International Journal of Human Resource Management,29(11), pp.1799-1826. Tenzer, H. and Schuster, T., 2017. Language barriers in different forms of international assignments. InExpatriate Management(pp. 63-100). Palgrave Macmillan, London. Van Gorp, L., Boroş, S., Bracke, P. and Stevens, P.A., 2017. Emotional support on re-entry into the home country: Does it matter for repatriates’ adjustment who the providers are?.International Journal of Intercultural Relations,58, pp.54-68. Yu, L. and Chang, J., 2017, June. The contemporary innovation enterprise management development trend and countermeasures thinking. In2017 2nd International Conference on Education, Sports, Arts and Management Engineering (ICESAME 2017). Atlantis Press.