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  • Subject Name : Human Resource Management

Contents

(a) Challenges facing the parent company

(b) Advice to the board

(c) International staffing approach 

Preface

Geocentric staffing approach

Regiocentric staffing approach

Polycentric staffing approach

Ethnocentric staffing approach 

Recommendation 

(d) Personal and professional work-life challenges

(e) Main stakeholders

(a) Talent recruitment program

Considering cultural, occupational demographic and technological trends

Social recruiting

Job board sites

Hiring a legal advisor

(b) Justification for cross-cultural training

Management differences

Leadership differences

(c) Needs for system of performance management system

Consistency 

Better retention

Identifying needs of the employees

(d) Personal and professional work-life challenges

(e) Chief stakeholders

References 

Answer to question 1:

(a) Challenges Facing the Parent Company

Global Human resource management operations face challenges in terms of implementing global strategy due to different determinants of success and failure in international businesses (Andersson et al. 2019). The parent company may incur difficulty in terms of deciding a staffing policy and employing suitable managers as it is the first logical procedure responsible for ensuring the success of staffing in the overseas assignments with expatriates. There are different reasons that can result in failures such as the poor selection of the staff, poor preparation and pitiable planning for the entry and concerned transitions of the manager. The most important variable, for example, is the fact that if insufficient attention is provided to the selection process and supporting all the phases, then expatriate failure can occur in the country where the new branch is about to setup.

Another fact is that there is a strong need for integration among different teams, lack of support from the headquarters can result in insufficient compensation and poor monetary support for the programs and repatriation from the parent company. It may face these issues and hence, they may be a hurdle in the procedure (Andersson et al. 2019). Other challenges faced by parent company involve adapting to the innovation, development and training of the workforce, leadership development, compliance with the new regulations and laws and the management related changes. Since China has a wide array of language sub-categories, the language barrier may barricade the expatriates.

(b) Advice to The Board

The new CEO must be selected on the basis of following critical skills that involve

  1. Communication protocols involving knowledge of Mandarin

  2. Clear Idea regarding the performance-related expectations

  3. Understanding of the strategic plan and extensive knowledge of career and expectations

Table shows CEO's job description
Table shows CEO's job description

It is imperative that the new manager is able to administer the training and orientation programmes on the basis of corporate expectations as well as the cultural briefing. For effective international human resources management, it is vital that the new manager has effective People management skills and stands strong on the grounds of attitude and work ethics (Kang and Shen 2017).

(c) International Staffing Approach

Preface

The international staffing approach of the organisation must be effective and as per the practices and norms of the parent company so that efficacious operations are guaranteed. The key International human resource management starting approaches are polycentric staffing approach, regiocentric approach, ethnocentric staffing approach and geocentric staffing approach (Desai 2019).

Geocentric Staffing Approach

Geocentric staffing approach ensures that the upper-level management positions are occupied by the qualified employees from a global pool of candidates (Desai 2019).

Regiocentric Staffing Approach

In regiocentric staffing approach, the top management positions are occupied by those employees who belong to a particular region for example European region, North American region or eastern region. It reflects a specific region (Desai 2019).

Polycentric Staffing Approach

The polycentric staffing approach is emphasized on the procedures and practices of the host company and hence the top management positions are held by the managers and corporate personal from the host country (Desai 2019).

Ethnocentric Staffing Approach

An ethnocentric approach is applied to the practices and norms of the parent company and henceforth, the corporate person from the local country occupies the top management positions (Desai 2019).

Recommendation

Comprehending the provided scenario, the organisation must adopt the geocentric staffing approach. This is so because this approach does not consider the characteristics such as country, region or any of the background but is highly relied upon the qualification and skills of the employees for fitting in the job profile. It will be beneficial for the new branch to effectively perform. This staffing approach is also followed by Wal-Mart for its global expansion. This policy is highly recommended because it assigns job positions by not considering the cultural country of origin, the background of the employees and this approach is highly flexible and ensures that diverse employees are incorporated and hence, competitive advantage is sustained (Hunt et al. 2018).

(d) Personal and Professional Work-Life Challenges

The expatriate senior management's main challenges in terms of professional and personal work-life equilibrium involve the differences in both countries.

  1. The differences are in terms of individualism. In UAE, it is estimated to be around 25 how to work in Russia, it is about 39 (Hofstede Insights 2020).

  2. In UAE and Russia, the language being spoken is quite different and it may be acting as a linguistic barrier for expatriates moving abroad.

  3. Finances and money management can also be an issue.

The personnel may experience fatigue because, in Russia, the climate is usually warm in summers whereas, in the winters, the temperature drops to -30 degree Celsius and even lower causing heavy snowfall. However, in UAE the climate is characterized by quite hot summers, mild winters with persistent humidity (Mani et al. 2018). Employees may face difference in safety standards and health care services. The Russian healthcare system is quite outdated with poorly paid staff and lack of government funds, however, that in UAE is rapidly developing and regulated at both Emirate and federal level.

(e) Main Stakeholders

Comprehending the Russian culture, the main stakeholders of the new venture will be the municipal authorities of the Russian federation, non-governmental organisations, the European Union regulators, shareholders and investors and companies providing natural oil and gas. Gazprom is the country's state-run natural gas monopoly; can be the key stakeholder of the new venture as it is regarded to as the world's biggest gas production company. For incorporating oil for running a new venture and other integral functions, Lukoil will be another key stakeholder of the venture (Sadikov et al. 2016). Russian government intervenes in the political and economic features of the organisation; it stabilizes these aspects and is usually involved in regulating the judicial and other authorities and for managing corporations' investors, stock exchanges and the compliance with corporate social responsibility and ethical considerations. For example Coca Cola Russia's key investors are its suppliers, customers, employees, media and providers of capital (Sidorchuk et al. 2018).

Answer to question 2:

(a) Talent Recruitment Program

Russia in the past few years has been leading in terms of economic success and fostering international companies.

Considering Cultural, Occupational Demographic and Technological Trends

For the organisation to conduct an effective talent recruitment program in Russia it is imperative to look at the cultural, occupational, demographic and technological trends being trailers a country Russia has lack of highly skilled workforce and the level of education is also low top position is important that bilingual employees who are skilled as per the job requirements are hired.

Social Recruiting

It is significant that social recruiting is considered. In Russia, Vkontakte is the largest Russian social networking site and as of June 2016, it reported around 369 million accounts hence, it is integral that the organisation uses this platform and introduces jobs page for getting the attention of the top talent (Roshchin et al. 2016).

Job Board Sites

The organisation can also make use of a job board which has proved to be an effective way of attracting qualified job seekers. At job board finder, there is a compiled list of popular Russian sites which are helpful in an effective recruitment campaign. Some of the popular job board platforms in Russia are Rabota.ru, Career.ru, Headhunter and Zarplata.

Hiring a Legal Advisor

The Russian labour law is quite intricate and hence, it can be recommended to the organisation for seeking a piece of legal advice before launching the recruitment process in Russia. It is illegal to pay employees in currencies other than 'rubles', therefore, in the recruitment campaign for marketing, it must make sure that it is effective and compliant with the legal procedures of the country and must hire legal advisers (Lushnikova and Lushnikov 2018). Adherence with legal considerations will also attract employees as more employees want to work with organisations that are ethical and legally compliant.

(b) Justification for Cross-Cultural Training

Management Differences

In international operations, cultural diversity is determinant of many organisational processes, this is so because a requirement of mutual understanding and dealing with a diverse pool of employees from different cultural backgrounds, different perspectives and angles and organisational behaviour knowledge is required. In Russia, since the culture is quite different, the management and leadership roles are accordingly modified (Lewis 2010). Organisational culture in Russia is bureaucratic whereas the same in UAE is vertically hierarchical. The cultural in Russia is multi-active in nature which makes it religious and cultural believes quite different from that of UAE. Wal-Mart operates in many countries by understanding economic, social and cultural institutions and practices of different regions. Wal-Mart believes that it relies upon the belief of respecting every individual and the stakeholders so that fairness and courtesy are incorporated (Hunt et al. 2018). This ensures that different culture is respected and embedded in the organisational culture. Since cultures are different in UAE and Russia, cross-cultural training can ensure that from the promotion of clear communications and relationships is fostered. It is also beneficial in elevating loyalty and motivation of the employees.

Leadership Differences

The leadership style must also be adapted according to the culture and region. Wal-Mart being a multinational organisation adopts different leadership as per its region of operations. It operates in 27 countries with diverse leadership, especially servant leadership so that the opinions of different employees from the different ethnic and cultural background are integrated (Hunt et al. 2018). The organisation also must adhere to different leadership tactics for improving workplace training. A participative leadership must be incorporated for the Russian venture. There is a need for cross-cultural training so that awareness about different cultures is boosted and also the classical barriers are reduced making employees more open to exchanges in relationships.

(c) Needs for System of The Performance Management System

Performance management systems are cardinal for keeping the check of the performance of the employees (Sahoo and Mishra 2012). In Russia, a system of the performance management system is crucial to be implemented because of the following reasons

Consistency

It maintains consistency in terms of selection of the employees; it makes promotions and transfers easier. It makes sure that the right person is employed for the right job role (Sahoo and Mishra 2012). In Russia, is critical to be implemented because it’s a foreign country and organisation has not earlier invested in the country, henceforth maintaining system performance management will be beneficial in maintaining the Russian employees.

Better Retention

Morale and retention will also be boosted by the system. This is so because the performance reviews will be helpful in documenting the salary actions and the same will be communicated to the employees. It will ensure that there is a transparent communication regarding incentives, salary and deductions (Sahoo and Mishra 2012). It will be helpful in retaining the top talent in Russia.

Identifying Needs of The Employees

Another positive aspect of the system of performance management is the fact that it will be helpful in recognising the training means of individuals from different cultures. This will be helpful in accurately evaluating the good employees in a better way and valuable remedial action for the employees who need training (Sahoo and Mishra 2012).

(d) Personal and Professional Work-Life Challenges

The challenges in both countries in terms of work-life balance can incorporate the following:

  1. Prioritizing and management of time can be complex due to the time difference in both countries.

  2. In Russia, internet access is available to only 76.4 per cent of the individuals which is more than 90 per cent in UAE (Mani et al. 2018). The employees not having internet access can be tricky for the expatriate managers and they may have to look into the situation for alternate options which can be time-consuming for them.

The climate difference between both countries is the key reason that expatriate managers may sustain fatigue. This is so because the climate of Russia is comparatively chillier than UAE (Mani et al. 2018). Due to a culturally different workforce, it may be difficult for the managers to have a look into the clashes and differences among the employees. It may be challenging for managers to mitigate unsupportive relationships.

(e) Chief Stakeholders

Stakeholders are integral within the new venture for supporting the operations and better engagement with the employees. For the venture in Russia, the suppliers will be the key stakeholders (Yashin et al. 2019). This is so because it will be helpful in ensuring that the time and finances are invested in the right place and the quality raw materials are procured. The key supplier of Russian venture will be Inter RAO; which will be responsible for providing electricity. Gazprom is the country's state-run natural gas monopoly; can be the key stakeholder of the new venture as it is regarded to as the world's biggest gas production company. For incorporating oil for running a new venture and other integral functions, Lukoil will be another key stakeholder of the venture (Sadikov et al. 2016).

Acknowledging the Russian culture, the major stakeholders of the new enterprise will be the nongovernmental organisations, the European Union regulators, municipal authorities of Russian federation shareholders and investors and companies providing natural oil and gas. Moscovodkanal will be the key supplier of the venture in terms of proper water supply for the operational endeavours (Sadikov et al. 2016).

References

Andersson, U.R., Brewster, C.J., Minbaeva, D.B., Narula, R. and Wood, G.T. 2019. The IB/IHRM interface: Exploring the potential of intersectional theorizing. Journal of World Business, 54,5 p.100998.

Desai, M.D. 2019. Study on International Staffing approaches and Pre departure training. Journal of the Gujarat Research Society, 21,11 pp.512-517.

Hofstede Insights. 2020. What we do.

Available at: https://www.hofstede-insights.com/product/compare-countries/

Hunt, I., Watts, A. and Bryant, S.K. 2018. Walmart’s international expansion: successes and miscalculations. Journal of Business Strategy, 6.

Kang, H. and Shen, J. 2017. The Effects of IHRM on Employee Outcomes. In International Human Resource Management in South Korean Multinational Enterprises, pp. 191-212.

Lewis, R., 2010. When cultures collide: Leading across cultures. London: Nicholas Brealey International.

Lushnikova, M.V. and Lushnikov, A.M. 2018. Labour Law in the System of Branches of Law in Russia: Problems of Theory and Practice. Kutafin University Law Review, 5,1 pp.2-20.

Mani, M., Hussein, Z., Gopalakrishnan, B.N. and Wadhwa, D. 2018. Paris Climate Agreement and the Global Economy, 2.

Roshchin, S., Solntsev, S. and Vasilyev, D. 2017. Recruiting and job search technologies in the age of internet. Форсайт, 11, 4.

Sadikov, D.G., Titov, V.G., Onishchenko, G.B. and Gulyaev, I.V. 2017. The energy efficiency of a high-voltage electrical drive for oil-and gas-industry compressor stations. Russian Electrical Engineering, 88,6 pp.331-335.

Sahoo, C.K. and Mishra, S. 2012. Performance management benefits organizations and their employees. Human Resource Management International Digest, 20,6 pp.3-5.

Sidorchuk, R., Mkhitaryan, S.V., Musatov, B.V., Meshkov, A.A. and Tultaev, T.A. 2018. The influence of high level values on brand preferences of student youth in Russia. International Journal of Retail & Distribution Management, 3.

Yashin, A.A., Williams, D., Klyuev, A.K. and Bagirova, A.P. 2019. Entrepreneurship education in Russia: Influence of Regional Stakeholders. Университетское управление: практика и анализ, 23,5.

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