International HRM2 Contents 1.Introduction..........................................................................................................3 2.Job design and structure of the overseas subsidiary.............................................6 3.Analysis of the staffing process for the overseas assignment..............................7 4.Analysis of the training & development process of the international assignees..8 5.Analysis of the remuneration package of the international assignees..................9 6.Conclusion..........................................................................................................10 References....................................................................................................................11
International HRM3 Introduction The market environment of today’s world comprises of developed, developing, and under-developed countries. One such is the USAmarket that accounts for about 20 percent of economic production and is much higher than the rest of the countries of the world. In particular, the US has the sixth-largest per capita GDP (PPP) as per the IMF report of 2019. TheUSeconomyhasastronglyintegratedandtechnicallymatureserviceindustry, responsible for around 80% of its production. Service-oriented businesses control the USA marketin sectors including technology, banking, hospitals, and the retail industry (World Economic Forum, 2018). Significant US businesses still represent the country globally, with more than one-fifth of the Fortune Top 500 firms originating from the USA. Appknox is a Singaporean software development company that is looking forward to having a new development in the USA office for mobile software. Appknox is the country’s most strong security plug-and-play application that lets developers, security analysts, and businesses tocreate a secure mobile network utilizing a device and manualfunctioningto overcomethe techniques ofhackers (Appknox, 2020). Keeping this in view, the country appears to be one of the most significant areas of interest for Appknox in the context of the International HRM. International HRM is the method of obtaining, assigning, and utilizing human capital to accomplish the specified goals of a multinational company. Due to the emergingglobal presence of the firms, International HRM works on the interaction of human capital, including the three dimensions-HR operations, employee classification, and countries where the company is operating (Kang & Shen, 2017). Hence, a cultural comparison of both countries is as follows. ElementsSingaporeUSARemarks
International HRM4 ClimateTropicalContinenta l Whereas Singapore has a tropical climate with just two seasons throughout the year, owing to its large latitudinal range extending from freezing Alaska to the tropical Hawaiian islands, the US experiencesalmostall sorts of climatic conditions. CultureEastern and Western Western culture Both countries have a western culture, but the Eastern influence is more in Singapore than in the USA LanguageMalay, Tamil English, and Mandarin Chinese EnglishEnglish is fluently spoken in the USA while in Singapore,multiplelanguagesareusedto communicate even at the official level CustomDiverse customs and traditions Diverse customs and traditions usually originated fromthe west Bothcountrieshavediversecustomsand traditions, but the customs in the USA are much moreinfluencedbytheWestwhereas Singaporeantraditionshavetheirrootswithin from the country Working style Highly competitive and An organized and The two countries have an organized and complex working style, but the main element is that in the USA, the working style is western in terms of
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International HRM5 organizedsupportive approach individuality whereas, in Singapore, the working styleisacombinationoftheAsianandthe Western-style. HistoryFounded in 1965 Founded in 1776 Both countries had won the war of independence from British colonialism (Galovan et al. 2010) Some other characteristics of the two countries have been studied byGalovan et al. (2010) as follows, CharacteristicsSingaporeUSARemarks DietsUsuallythree meals a day with a combination of Asianand Western dishes StandardAmerican Diet or the Western Pattern Diet In the USA, a more western style of diet planisfollowed whileinSingapore, bothAsianand Western-styleis followed Family backgroundConfucian background Western backgroundBoth countrieshave familybackground diversity ReligionBuddhismChristianityReligious diversity is found to be in both countries SportsandLeisure activities The popularity of footballand basketball Football and golfBoth countries show massiveinterestin sports activities
International HRM6 Job design and structure of the overseas subsidiary For the companies to operate in International HRM operations, it is essential to make sure that the job is explicitly designed according to the region. In this regard, the Hofstede national cultural dimensions can be used to develop an appropriate job design. In Singapore, the power distance is high, and employees tend to perform according to the instructions of their employers. On the other hand, in the USA, there is less power distance,eveninthecorporateenvironment(ClearlyCultural,2020).InSingapore, collectivism is prevailing, meaning people tend to work in groups while in the USA, it is the individualism that is dominantly viewed. As far as masculinity and femininity in the USA and Singapore are concerned, the masculinity element is evident in the USA (Hofstede Insights, 2020). This means that the USA culture is more towards achievement and success while in Singapore, people tend to encourage soft aspects such as building consensus and sympathy for others. Regarding uncertainty avoidance, Singapore scores less, and it is because the country is known to be a Fine Country where people are charged heavily for everything. On the other hand, the willingness and acceptance of innovation are high in the USA (Chen & Chen, 2016). Americans tend to value short-term performances while Singaporeans depict long- term orientation. This means that the country makes sustainable efforts to regard the long- term orientation. As far as the indulgence and restraint factors of the culture in Singapore is concerned, the country shows almost a balance in these two elements (Hofstede Insights, 2020). Contrary to this, the USA is known to be an indulgent society. Keeping the above comparison in view, the job design for the overseas subsidiary plan is prepared. The team of employees would be expected to perform in a decentralized manner. This is because in the USA, the power distance is less, and the employees can work
International HRM7 without having each guidance from their boss (Clearly Cultural, 2020). For this purpose, the duties of the ten members of the team would be to separately work on the development of the subsidiary program and report to the Head office. This will encourage them to work independently and enhance their analytical and managing skills. For this purpose, the manager must be having problem-solving abilities, command on technology, and must have the ability to work independently without always relying on the support of other managers (Tahir, 2019). Furthermore, the manager must be having a short-term orientation towards the plan so that his excellent decision-making abilities can be tested in a limited time. Another important task of the managers would be to bring innovation in the program and make it different than the ones operating in Singapore. The managers will have to understand the Western market conditions to implement the program. One core responsibility of the overseas managers would be to reflect on the possible risks, and timely monitor them. The managers will have to report to the HQ than to depend on each other for confirmation of their respective tasks. Analysis of the staffing process for the overseas assignment In order to fulfill the job specifications as mentioned above, the staffing of the team would depend on multiple factors. In this regard, the company will examine the ability of the employees that are task-oriented and have the desire to achieve the goal. This is because Americans show masculinity more than soft aspects of society. Managers that live to work would be preferred and become a part of the team. For the staffing process, the managers will be selected from within the company. First, the screening of the managers will be done; then, a telephonic interview would be done and, eventually, a written test. The recruitment process will be based on assessment centers in which a written test, an interview, and then real-time problem scenarios would be presented to the candidates to understand their level of practicality (Hamid et al. 2017). The managers
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International HRM8 will be analyzed on their level of individuality. This would depict whether or not; they are capable of working without forming groups and have an ability to work without depending on others. Additionally, the managers will be examined to know are they suitable to compete with the continental climate of the USA that is quite different from Singapore. This is because the health of the team members is also essential for the company, and any unfit employee may not be made the part of the team (Elshanti, 2017). Also, the managers that have command of the English language would be preferred and have a willingness to accept the taste diversity in the USA. Analysis of the training and development process of the international assignees The training and development of the employees are one of the challenging tasks, especially in the International HRM context. It is because the employees have to be trained to work according to the working conditions of multiple regions (Buller & McEvoy, 2012). In the present context, the team members will be trained for the program. Theemployeeswouldbetrainedweeklyfortheprogram,andbi-monthly development sessions would be conducted while they work in the USA. The behavioral training, time-management, and cross-cultural training sessions would be conducted in this period. The cross-cultural training would be conducted twice a week while all other training sessions scheduled for once a week. The duration of the training programs will range between 2-3 hours. The on-the-job training would take place twice in one month. This training will be held through Skype to analyze the success-driven approach of the employees. This training maybescheduledasaformalmeetingwiththeseniormanagementattheHQ (Gopalakrishnan,2012).Theoff-the-jobtrainingwillbeabitinformal,allowingthe employees to share their experiences in the USA market environment.
International HRM9 However, before the employees finally fly to the USA, the team will be trained for at least one month to understand the culture and working style of the Americans. The company will allow them to have informal sessions with the nutritionists who can provide them better diet plans, counseling with the psychologist to overcome homesickness, and also a formal session with a tour agency guide who would share traveling details with the employees (Tahir, 2019). This will allow the team members to get familiar with the must-visit sites of the USA as they spend time in the country. Analysis of the remuneration package of the international assignees For an international assignment, the employees must be compensated in monetary terms, and one such is to make sure that the company provides them a complete traveling package with other benefits. This helps to retain the employees, especially when they are working in a different working environment (Parveenet al. 2017). For this purpose, the company would bear the traveling cost of the team, including the airfare and cab services upon reaching the USA. The company would facilitate employees at a reasonable flat for the have to work at least a year in the USA; therefore, accommodating in any hotel might not work. The company would also provide the team with a food allowance and accommodation allowance once they complete their one month job. In addition to this, the company will also provide its team with a transportation facility that will include company maintained van and two drivers. The company would also provide medical insurance to the team so that they may not worry about their checkup while staying in the USA. The company would also include a bi-annual increment for the team members so that they keep on getting motivation in monetary terms. The remuneration package will also include a one-time sponsored trip to the European countries so that the employees can utilize their annual leaves after the completion of the task. Based on this, the
International HRM10 company will be using a balance sheet approach to balance the debits and credits of the company during the expatriate’s compensation in the USA. Conclusion The analysis of the whole scenario and market conditions of the USA and the plan of Appknox briefs that the company has to align the staffing process, training, and development, and the remuneration packages, according to the USA environment. The company can better utilize the manager within the company because investing in outsourcing may not be a good idea. It is because the company will then be engaged in dual strategies, including first training the outsourced employees and then managing the new team. Using an assessment center for the recruitment strategy while a balance sheet approach to make the overall expenditures within the budget may prove to be cost-effective for the company. Hence, the strategies used by Appknox may be considered beneficial for the team in the USA.
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International HRM11 References Appknox. (2020, April 07).About Us.https://www.appknox.com/company Buller,P. F.,&McEvoy,G. M.(2012). Strategy,humanresourcemanagementand performance: Sharpening line of sight.Human resource management review,22(1), 43-56. Chen, Z., & Chen, H. (2016). Research on Diversified Paths of Regional Agglomerative Allocation of Innovative Human Resources: A Case Study of Suzhou in Jiangsu Province.Int J Econ Manag Sci,5(371), 2. ClearlyCultural.(2020,April07)GeertHofstede’sCulturalDimensions. http://clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/ Elshanti, M. (2017). Transformational leadership style and organizational learning: The mediate effect of organizational culture.International Business and Management,15(2), 1- 14. Galovan, A. M., Fackrell, T., Buswell, L., Jones, B. L., Hill, E. J., & Carroll, S. J. (2010). The work–family interface in the United States and Singapore: Conflict across cultures.Journal of Family Psychology,24(5), 646. Gopalakrishnan, G. A. N. A. K. R. I. S. H. N. A. N. (2012). Issues that influences the effectivenessandefficiencyofhumanresourcemanagementinand organization.International Journal of Economics and Management Sciences,1(6), 65-70. Hamid, M., Maheen, S., Cheem, A., & Yaseen, R. (2017). Impact of human resource management on organizational performance.Journal of Accounting & Marketing,6(01), 1-7. HofstedeInsights.(2020,April07).CountryComparison.https://www.hofstede- insights.com/country-comparison/singapore,the-usa/ Kang, H., & Shen, J. (2017). International Recruitment and Selection Policies and Practices. InInternationalHumanResourceManagementinSouthKoreanMultinational Enterprises(pp. 51-84). Springer, Singapore.
International HRM12 Melhem, I. B. (2016). Impact of the Human Resources on the Risk Management and the Company Performance.International Journal of Economics & Management Sciences,5(2), 1-5. Parveen, M., Maimani, K., & Kassim, N. M. (2017). Quality of Work Life: The Determinants of Job Satisfaction and Job Retention among RNs AND OHPs.International Journal for Quality Research,11(1). Tahir, R., & Egleston, D. (2019). Expatriation management process.Journal of Workplace Learning. WorldEconomicForum.(2020,April07).TheGlobalCompetitivenessReport. http://reports.weforum.org/global-competitiveness-report-2018/country-economy-profiles/ #economy=SGP