TechnologyOne Limited HRM: International Business Report Analysis

This report examines the international human resource management (IHRM) strategies of TechnologyOne Limited, an Australian software company, as it plans to enter the Indian IT market. The report analyzes key IHRM practices, including ethnocentric staffing approaches, effective expatriation programs, pre-departure training, and international compensation strategies. It also discusses the factors driving the standardization and localization of HRM practices within the Indian subsidiary, considering the influence of corporate culture, subsidiary roles, and the need to balance headquarters control with local adaptation. The report provides recommendations to strengthen the company's operations in India, including adherence to a code of conduct, and concludes with insights into how changes in power dynamics can enhance the company's effectiveness. The report emphasizes the importance of cultural sensitivity, effective training, and fair compensation to ensure the success of expatriates and local employees alike, facilitating a smooth transition into the Indian market.

Running head: TECHNOLOGYONE LIMITED HRM
TECHNOLOGYONE LIMITED HRM
Name of the Student:
Name of the University:
Author Note:

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Executive summary
This report has discussed the International human resource management process that guides
the managers of the companies entering in the new market in any industry to properly utilise
the human resources. Here the MNE named Technologyone will be entering the IT market of
India. This paper has analysed the approaches apt for the human resource management to
initiate international staffing, effective expatriation program, pre-departure training program
and approach to international compensation of expatriates. Along with these the localisation
and standardisation process are also discussed. This report ends with a recommendation how
changes of power equation can strengthen the company effectively. It ends with the code of
conduct which Technologyone must follow for operating successfully in the Indian
subcontinent.

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Table of Contents
Introduction:...............................................................................................................................3
Introduction of the organisation, the subsidiary and India as host country:..............................3
1. IHRM practices in four areas:................................................................................................4
1.1 The approaches to international staffing:.........................................................................4
1.2 An effective expatriation program:..................................................................................5
1.3 A pre-departure training program:...................................................................................5
1.4 The approach to international compensation of expatriates:............................................6
2. The factors driving the standardisation and localisation of HRM in Technologyone
Limited:......................................................................................................................................6
2.1 Factors that drive standardisation:...................................................................................7
2.2 Factors that drive localisation:.........................................................................................8
3. Recommendations:...............................................................................................................10
Conclusion:..............................................................................................................................11
References:...............................................................................................................................13

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Introduction:
The aim of this report is to discuss the international human resource management
process followed by the multinational enterprises like Technologyone Limited in Australia.
The international human resource management process takes good care of the employees
when a new venture is initiated. Here the human resource management of Technologyone
Limited aims to enter the market of India which seems to be favourable for the growth of this
particular company. However not only these programs relating to the staffing and providing
support to the expatriates, the HRM also takes care of the process of localisation and
standardisation of their HRM practices so that the employees who will be employed in that
subsidiaries locally along with the expatriates, can get job satisfaction. Finally some
recommendations are suggested so that the power and domination of the head quarter is seen
in the subsidiary in Indian market.
Introduction of the organisation, the subsidiary and India as host country:
Technologyone Limited is an Australia based software company that was found in
1987 in Brisbane, Australia. Technologyone Limited has been listed on the Australian
securities exchange with symbol of TNE and constituent of ASX 200 index. This particular
MNE has its subsidiaries in Australia, Malaysia, United Kingdom, the countries of south
pacific region and the neighbouring country of New Zealand. The company provides business
support through information technology, project management and consulting services to the
other organizations. The company does not have any presence in the big market like India
where there is a lucrative business scope with the second largest population, unmatched raw
materials and a great chain of suppliers. In addition to this, the process of entering the IT
market of India will be fruitful because the employees of the Indian market are highly skilled
are often outsourced in the companies of US. Therefore, if Technologyone Limited enters

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Indian market it will be able to use the skilled yet cheap labour market proactively. However
there is a difference in organisational culture, but the HRM policies through perfect programs
for the local and expatriate staffs can help the company to eliminate the problems easily
regarding human resource.
1. IHRM practices in four areas:
1.1 The approaches to international staffing:
The company while operating in the Australia and New Zealand did not need to worry
about the international staffing because the markets do not have much difference in the
organisational culture as the culture of both of these countries are more or less same
(Budhwar, Varma and Kumar 2019). However in the case of Indian subsidiary, the HR
manager needs to take care of the difference in the national culture which has a great impact
on the culture of the organization. As mentioned by Patel, Sinha and Bhanugopan (2018), the
Indian culture puts importance on the abiding by the higher authorities and follow the power
distance dimension as detailed in the cultural dimension of Hofstede. Keeping this in mind,
the HR approach for the international staffing must be ethnocentric (Budhwar, Varma and
Hirekhan 2018). According to this approach, the staffing designates home country Australia
national as the top ranking employees in the global operations. Here the executive positions
will be given to the Australian in the office located in India. In this case the head quarter
situated in Australia will be controlling the operations and procedures of management for
subsidiary to profit. This plan will be fruitful because the managers from the parent company
has a better knowledge of operation in the retail business. Moreover they have knowledge of
the company policies as well as procedures so they can ensure that the guideline of the
company is perfectly followed.

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This approach of ethnocentric staffing will be effective because the opportunity to
transfer the company values to the foreign operations will be developed. The management in
the higher position in the subsidiary branches will work to support ethics, customer services,
productivity and the other issues (Budhwar, Varma and Hirekhan 2018). The approach of
ethnocentric staffing can increase exposer of the expatriates sent to the India from the head
quarter of the company in Australia along with broadening their thinking.
1.2 An effective expatriation program:
As mentioned before a section of employees will be sent to the Indian subsidiary so
that they can handle the initial operation of the company after entering the new market of
India. In this regard, some of the employees who used serve as the team leaders will be
selected as the departmental heads in the new subsidiary in India. Therefore, these expatriates
will be needing some special trainings that will definitely enhance the ability to quickly
leverage the cultural sensitivity and perform in the new international business environment.
This is the reason why a perfectly written policy must be there (Budhwar, Varma and
Hirekhan 2018). The IHRM will be requiring a business case to justify the expense of the
expatriate employees. The approach of effective expatriation program will have close
connection with the approval chain of command the HRM will only select those employees
who will become a good ambassador for the company. This will enable the company to enter
and perform effectively in the Indian market by adopting some changes.
1.3 A pre-departure training program:
Before departing the Australian market, the expatriate employees will be needing
some very essential trainings like language instruction, cross cultural awareness, preliminary
visits and day to day assistance. If these expatriates do not have any knowledge of its
surrounding or environment, they can experience server cultural shock. Therefore, the

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trainings will be including the sections relating to the Indian culture and ethnicity. As Indian
subcontinent is highly diverse in terms of food, religion, values and clothes therefore
knowing a standard culture is essential for the expatriate employees. However, the language
while communicating the Indian market as new venture is not a problem because English is
used commonly in the professional communication process. Finally the training program will
include the ICT section which relates to the intercultural communicating training. This
enhances the individual skills and the non-work factors among the expatriates which ensures
that the employees are happy, healthy and secured.
1.4 The approach to international compensation of expatriates:
In order to compensate the expatriate employees going to work in the Indian market,
the company needs to be compensate both individually as well as with their families. Most
important of all the cost of living allowance or COLA will be arranged along with the leave
facilities (Gope, Elia and Passiante 2018). The programs of the expatriate employees will
include the allowances for accommodation, meal and medical expenses. In addition to this,
the program will also include the vehicle and transportation costs. The expatriate employees
who will take their families, will be given the educational allowances for their children and
medical expenses of the family members. More importantly, the expatriate employees will be
given better salary than the others working in the home market (Singhal and Arora2018). The
pension allowance will be different from the others operating in the home country. The
expatriate employees will be ensured through insurance policies in every aspect.
2. The factors driving the standardisation and localisation of HRM in
Technologyone Limited:
The practices of the subsidiaries are always different from those of the head quarter in any
company. Now in the case of Technologyone Limited, the human resources will come under

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the localisation and standardization process like the products. The employees will be first
exposed to the new and foreign market therefore, the HRM policies will change accordingly
(Budhwar, Varma and Kumar 2019). In the other subsidiaries, the company has followed the
method of standardisation and localisation in different section of the human resource
management which has given a positive and dependable result. Hence the process of strategy
and structure, corporate culture, and firm size and maturity need to be standardised not
depending upon the skills and capabilities of the Indian managers (Prikshat et al. 2018). On
the other hand, the factors like cultural environment, institutional environment, mode of
operation, and subsidiary role need to be localised.
2.1 Factors that drive standardisation:
There are various categories on which the human resource management works. Now
when the company will be operating a new subsidiary in the other country, there will be some
inevitable changes in the policies of managing the workforce (Chandwani and Makhecha
2019). Despite the fact that many IT companies have started expanding in the IT market of
India, it is impossible to leave al the responsibilities upon the local employees and
management. On the basis of the strategy and structure of the head quarter, the human
resource management must be developing the new policies so that there is a perfect balance
between the expatriate and the local employees (Dickmann, Brewster and Sparrow 2016).
The company will be employing new workers from the local market and most of them will be
the ground level employees. The expatriates will be positioned in the higher layer of the
organizations so that the policies regarding recruiting, orientation and training of the newly
recruited persons are followed by the policies of the head quarter. It is also important for the
maintenance of the corporate culture of the subsidiary. The standardisation of the corporate
culture can help the HR managers to include the shared values, standards, attitudes and
beliefs of the members of the organization (Patel et al. 2018). It is essential to prevent any

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growth of difference in the decision making process because in case the Indian employees
start to contribute in this process, the maintenance of the strategies of Technologyone Limited
will be problematic. This is why the processes of setting organisational goals, structure and
approaches to the investors, customers and employees and the greater community must be in
the hand of the decisions making of the head quarter (Dickmann, Brewster and Sparrow
2016). As the company’s expatriate employees have better understanding of the operation of
this company, therefore, they will be able to ensure what the organizational goals will be or
how the organization will be structured.
The company already has a perfect corporate image in the global business sector
therefore, if the subsidiary starts to decide the structure, number of employees and firm size,
it will effectively lose the credibility and reliability in the global business scenario. The
maturity level of this company in the Australian market is great therefore, the employees
working in the head quarter branch know all the risks and touch points (Lee and Reade 2015).
This is not possible for the Indian employees to have such expertise they may be skilled as
the team members especially in the programming and other production process but they do
not have in hand experience of the business which the expatriates have. Therefore the
corporation culture, structure, recruitment policies will be standardised in the Indian
subsidiary.
2.2 Factors that drive localisation:
Despite the fact that the corporate culture and other essential organisational process
and along with business decision making, the company will be following the policies and
regulations of the head quarter so that there is no confusion of power execution and
domination between the Indian subsidiary and the Australian parent organization (Lee and
Reade 2015). In the cases of incorporating national culture in building teams and promoting

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cultural environment in the workplace, the subsidiary must be following localisation process
(Evans et al. 2016). The national culture of India will have a great impact on the workplace
culture. It is important to note that the power distance dimension of the national culture
enables the expatriate employees to execute power upon the local subordinates. It is easier to
control the ground the employees in India. As the demand of these employees are not so
pressing upon the higher layers therefore the workplace becomes very much adaptive with
any change (Pereira and Scott 2015). The institutional environment if localised then the
company will be able to segment the employees into some teams depending upon their
functionality. Therefore operations will become easier. It is to be noted that the culture of the
country ensures that the people here practice collectivism that enable them to work in groups
(Evans et al. 2016). It is the process of thinking more as a team member than the individual.
Therefore, the competition among the employees for reaching the goal which often poison the
organizational culture is mitigated as the employees think more about their teams and try to
achieve team goals collectively.
The mode of operation in the Indian market is easier if the company decides to
localise their motivational policies in the company. The Indian employees plan for long term
therefore if they get proper wages according to their expectation and responsibilities, they
never leave their firms (Pereira and Scott 2015). They have the tendency to get engaged in
the company’s wellbeing and try to contribute their skills for the growth of the company
where they work. They are confident to present themselves in the production system as they
have all the skills needed for the production (Prikshat and Kumar 2018). They know that the
company will be providing them all the trainings when necessary therefore do not create
issues while here is a change in the organizational polices. Therefore through the reward and
recognition process the management can motivate these employees more easily. They are
more satisfied when the organization think more about the families of their employees

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(Pereira and Scott 2015). It attracts the local Indian employees to be loyal to their employers
therefor the subsidiary role has to be played properly by the company then only they can
execute control over the ground level employees and gain full support from them.
3. Recommendations:
In order to use the skilled labours of the Indian market, the company needs to follow
some effective changes in the structural formal control polices. This is a method of
international recruitment where the multinational enterprises can hire the best suited persons
for the job role without thinking of the nationality. This type of staffing can be done in
Technologyone limited so that the process of expanding in a new market can be fruitful.
Firstly the company must be following geocentric process of staffing so that the people who
are skilled and best suited for the designation get the first priority. This stuffing will be
eliminating any chance of corruption or the discrimination between the expatriates and local
employees. This type of staffing process will not be focussed on the cultural background of
the applicant but employ those who know their job best. This type of staffing process do not
affect the structural formal control of the parent organisation but helps it to develop a pool of
senior executives having international experience as well as contacts across the borders. The
sense of unfair treatment that often demotivate the employees is not seen in this type of
staffing process.
Usually, the process of preliminary visits to the new market before the company
enters the country takes place. Now the expatriates will need to have a first had experience of
working in a cross cultural subsidiary bit the geocentric process allows the company to have a
set of already seasoned local managers who either have the experience of working in the
other company for long in the same industry or they have the knowledge of dealing with
cross national companies in their career. These type of employees will obviously expecting a

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higher position as they can effectively contribute the growth of Technologyone when it starts
to operate in the Indian IT market.
Any company whether large or small have codes of conduct that regulate for the in
implementing and monitoring these HRM practices of both the parent as well as the
subsidiaries. In this case, the HRM will empower the employees so that the issues of
discrimination on the basis of majority or cultural background do not affect the organizational
culture. Among these the factors like anonymity and confidentiality, investigation, keeping
proper documentation, management of the company assets, and use of information and proper
mitigation of the problems relating to the conflicts of interest can be mentioned. The
communication process among the employees and the management need to be transparent
and the process of analysing feedback from the employees need to be properly utilised so that
the management whether expatriates or the local ones can be used to gain trust. It will
contribute positively to the relationship building with the stakeholders in the international
market or for that matter the local market. The code of conduct of the company also include
the transparent reward and recognition aspects. The more the employees will be empowered,
the more the company will be using them properly. In addition to this, the dealing of the
government of the market is also a factor that the company needs to deal with properly so that
it can focus on the CSR process in the future. By following the process of ethical decision
among the company can effectively use its human resource management in one hand and
operate in the IT business of the new market that is India.
Conclusion:
Therefore it can be concluded that the company hailing from the Australian market
named Technology one Limited need to be embrace the culture of the new market where it is
entering, in this case it the market of India where the company will be getting skilled yet

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cheap labour having in depth knowledge about the IT programing which is offered by
Technology Limited in the different countries like the United Kingdom, Malaysia, some
countries of south pacific region, Australia and more importantly New Zealand and many
other countries of the world. In order to operate successfully the company needs to
effectively lay the human resource management so that the employees in the local market are
properly utilise in one hand and there is no problem in the mixing of the expat and local
employees. In some case, the company will use standardisation process and in some cases, it
will use localisation process to get the best result in terms of successful use of the employee
skills.

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References:
Budhwar, P., Varma, A. and Hirekhan, M., 2018. HRM in the Indian subcontinent.
In Handbook of Research on Comparative Human Resource Management. Edward Elgar
Publishing.
Budhwar, P.S., Varma, A. and Kumar, R. eds., 2019. Indian Business: Understanding a
rapidly emerging economy. Routledge.
Chandwani, R. and Makhecha, U.P., 2019. HRM PRACTICES IN THE INDIAN
CONTEXT. Indian Business: Understanding a rapidly emerging economy.
DICKMANN, M., BREWSTER, C. and SPARROW, P., 2016. Introduction and Overview of
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Collings, D.G., Mutabazi, E., Derr, C.B. and Hallowell, R., 2016. The Context of IHRM:
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