Culture Shock Management: Telstra's International HRM Policies

This essay provides an overview of culture shock, its impact on a company's profitability and image, and how Telstra, a major telecommunications corporation, manages culture shock in foreign countries. It defines culture and culture shock, highlighting the causes and adverse effects on a firm's financial position. The essay details Telstra's effective human resource management strategies, including mentorship programs, effective recruitment processes, familiarization with office terms, fun packets, training and development programs, fostering a positive attitude, and building good relationships to minimize culture shock. It also mentions Telstra's use of Hofstede's cross-cultural dimension model. The essay concludes that culture shock is a significant issue that can influence a firm's success, emphasizing the importance of effective HRM policies and strategies in managing it.

Running head: International HRM
International HRM

International HRM
The primary aim of this paper is to provide a brief overview about the culture shock. The
paper explains how culture shock influences profitability and image of the company. Telstra has
been chosen in the task which is one of biggest telecommunication corporation which renders
internet and media services to its customers across the world. In today’s era, the firm is
maximizing its revenue and returns effectively. On the other hand, the paper explains that how
Telstra manages and controls the culture shock in foreign country.
Culture may be defined as the sum total of the beliefs, rules, institutions, techniques
artifacts which are characterized by the human populations. Culture plays a significant role in
each and every organization. On the other hand, cultural shock is the feeling of insecurity,
disorientation and even anxiety that results from being constantly in a new and experiencing an
unfamiliar culture (Rubera & Kirca, 2012). Changes in technology, language differences, and
changes in routine and evaluative and emotional disorientation are the main causes of cultural
shock. Cultural shock affects image and financial position of the firm adversely. To gain success
and growth in the competitive environment, the firm needs to focus different cultural
environment. Furthermore, culture shock may arise from a person’s unfamiliarity with local
customs, acceptable behavior and languages in the firm (Wang, Su & Yang, 2011).
Let’s talk about an organizational example; Telstra is a dynamic example which manages
culture shock effectively and efficiently. Telstra is an Australian telecommunications and media
corporation which provides market voice, internet access, networks and mobile services to the
customers across the world (Telstra, 2018). The company was incorporated in 1st July 1975 with
it’s headquarter is located in Melbourne, Australia. The firm provides around 17.6 million
mobile services to its customers in the world. The main aim of the organization is to provide
unique and effective telecommunication services to its customers in the market. Along with this,
Telstra also wants to create a brilliant connected future for people (Telstra, 2018). Human
resource management of Telstra is very effective and dynamic which helps to make unique
strategies and policies for the firm. HRM is the backbone of the company to manage the business
activities and operations quickly. Furthermore, HRM plays a crucial role in managing and
controlling the employees effectively. In addition, various unique functions are performed by the
HRM in the organization which helps to conduct company’s business activities effectively.
There are enormous issues which faced by the HR department of Telstra. Culture shock is one of
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biggest issues that are dealt by HRM within the organization. Culture shock affects the
productivity and outcomes of the firm as it also increases absenteeism and employee turnover in
the firm. Various policies and strategies are made by human resource department to manage and
control culture shock that has been detailed below.
Give them a buddy and mentor: A well educated and experienced buddy and mentor should be
appointed by human resource management for new joinees. A buddy and mentor monitor and
evaluate the performance and productivity of new applicants in the firm. Telstra is a
multinational telecommunication and media company therefore skilled and experienced
employees are needed in the organization. Mentor and buddy also provide training to new
workers for doing task and duties efficiently. It will also help to minimize the cultural differences
among the new workers. The mentor and buddy will help to workers to familiarize with current
projects, coworkers, policies and office hangout places.
Effective recruitment and selection process: It is one of the vital functions of HRM which is
performed by HR executives and HR managers. Effective recruitment and selection process must
be conducted by the HRM to recruit potential and skilled candidates in the marketplace. Potential
and skilled workers can easily understand the culture of foreign country therefore, it will reduce
culture shock (Reiche & Harzing, 2011).
Familiarize with office terms: Human resource department is significant department of Telstra
which helps to make effective and unique policies, strategies and plans in the firm. Human
resource management should use various policies and strategies to familiarize the office terms
and rules with employees. It will help to create a good working environment in the workplace
therefore, employees will start to do work effectively.
Create a fun packet: A positive feeling on the first day will surely give a push to the new
workers for a long term reciprocal relationship with the employees. HRM should assemble and
accumulate a fun packet for employees; the fun packet includes coffee mugs, photo frames,
artistic calendar, decorative plants and office stationary. In this way, Telstra can reduce and
eliminate cross cultural differences within the organization. It is an effective way to overcome
the competitors in the global market.
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Training and development programs: Training and development programs shall be conducted
by HRM to identify and measure the causes of culture shock. Training and development
programs help to identify and understand the languages, values, customs and beliefs of foreign
countries. If Telstra provides training and development coaching to the expatriates then culture
shock issues will not arise at the workplace. Along with this, induction programs are also held by
human resource management in the firm to increase knowledge and experience of the workers.
In this way, Telstra can overcome on the cross cultural issues in the workplace (Ko & Yang,
2011).
Keep a positive attitude: It is an effective way to cope with culture shock in the organization. If
the firm starts its business operations and activities in foreign country, the employees keep
positive attitudes towards foreign culture. It will help to analyze and measure the climate of
foreign country. Before starting a new business in foreign country, the company evaluates and
analyzes the climate and working environment of the foreign country. It will also help to make
good and favorable working environment within the organization (Podsiadlowski, Gröschke,
Kogler, Springer & Van Der Zee, 2013).
Good relationship: The managers and leaders should build and develop reciprocal relationship
with their coworkers and expatriates to minimize culture shock and to maintain favorable culture
in the workplace. The managers should ask questions with workers related to working
environment and culture (Lin, Chen & Song, 2012). It will help to find barriers and hurdles
which rise at the workplace. Effective and dynamic relationship will also enhance and increase
confidence, morale and trust of the employees. Along with this, HRM should appoint a
supervisor to provide support for the workers. All these policies are made by the HRM for the
welfare of the workers. Furthermore, these practices and policies also help to overcome on the
cross cultural issues in the organization (Bardhan & Weaver, 2011). Along with this, Telstra uses
hostede cross cultural dimension model to reduce and cope with the cross cultural issues. This
model plays a vital role in cross cultural management (Shi & Wang, 2011).
On the above mentioned aforesaid events, it has been evaluated that culture shock is one
of the significant issues in Telstra which could influence the success and growth of the firm.
Therefore, the company needs to focus on the culture shock to maximize profitability and
minimize risks and challenges of the foreign market. Effective and unique measures are taken by
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the human resource management to manage culture shock at the workplace. Along with this,
HRM should make effective and dynamic plans, policies and strategies to handle the culture
shock within the organization.
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