Complexity of Cross Cultural Management

Question: Discuss about the Complexity of Cross Cultural Management. Answer: Introduction International Human Resource Management is a complex concept than that of domestic HRM policy. The complexity of International Human Resource Management occurs due to the presence of cross-cultural population outside the local market (Schuler, 2011). Hence, it is important for any organisation to consider the factors of cross-cultural organisation and implement different strategies to seek growth in the international market. Any firm expanding its business in the international market needs to implement international staffing policies. The international staffing policies of an organisation depend on upon the ability of the organisation to attract right candidates, constraints placed by the host country and general staffing policy of the company (Swierczek, 2014). Therefore, it is important for any organisation to alter the staffing policy to seek better human resource positioning in the new market. The paper has been developed to present a report on international staffing for Blundstone Footwear that has planned to expand its business in the UAE market. In order to develop a good positioning in the UAE market, the company needs to consider various challenges of international human resource management in the new target market. The foremost challenge of global staffing is the cross-cultural workforce that must be maintained to have a competitive advantage in the new market. Hence, the report presents the approaches to international staffing that can be used by Blundstone Footwear to start its operations in the UAE market. Furthermore, the study has suggested various strategic changes that are required to meet the needs of international staffing. Target location Analysis Being a Muslim state, the people of UAE are more conservative. Currently, the presence of a vast number of expats has changed the cultural scenario of the region. But, it is important for HR management of Blundstone to respect the cultural practices and beliefs of UAE people to have a better workforce. It can be seen that people of UAE believe in wearing their ethnic dress (Staber, 2016). Therefore, the company needs to allow its employees to carry on their cultural practices. Furthermore, the communication gap can be a major problem for the company. Hence, it is important to employ local staffs capable of communicating with the customers and provide the business with positive outcomes. Challenges for international HRM In the contemporary business scenario, staffing policy can be identified as one of the primary challenges for international human resource management (IHRM). Through the identification of the most efficient hiring practices, global multinational organisations can recruit the most suitable talents for business purpose (Vance and Paik, 2016). Therefore, recruitment strategy of IHRM can create significant difficulties for the efficient business set up on the global platform. On the other side, management styles must be upgraded according to the foreign culture so that the designed strategy can create a positive influence on the organisational human resources (Burke, 2010). Evidently, IHRM policies dedicated to staffing plans to retain the best in the business will be considered as another momentous challenge for IHRM. Moreover, there are expatriation, compensation and repatriation issues attached to IHRM to manage the workforce in overseas territory. Internal Environment In international human resource management (IHRM), the internal environmental factors have played some crucial roles to manage the issues and unpredictable business events. Moreover, the internal environmental factors are relatively easier to control in compared to external environmental factors. Herein, four identified internal environmental factors have been analysed to draw further argument on the topic of IHRM. Management changes: In IHRM, significant changes in management must be positioned to connect the performance of the human resources towards the organisational goals. In the overseas market, through the identification of effective business model, organisational structure can be developed to improve the productivity of the management contributing towards regulatory efficiency (Brunetto, Farr-Wharton and Shacklock, 2011). Culture changes: The international platform can include internal culture, work ethics and social dignity within the organisational culture. Hence, the organisational management must adopt the changes so that the human resources can participate in the corporate success directed by contemporary business culture (Rees, Edwards and Edwards, 2011). Such effective workplace environment can produce maximum efficiency from the human resources. Employee morale: In the modern business model, organisations operating at the international platform need to improve the morale of the organisational employees (Delbridge and Lowe, 2007). By conducting efficient training and development programmes, the techniques and cultural knowledge of the staffs can be enhanced. On the other side, such effective management moves can mitigate the cultural differences among the staffs to bring sustainable work culture. Financial issues and changes: Last but not the least; the financial issues and changes can significantly contribute to managing health IHRM. Through the understanding of the financial structure of the firm, employees must be given reward and benefits for their additional contribution towards the growth model of the firm at the international platform (Cavusgil, Knight and Riesenberger, 2012). Such initiatives can increase the performance and productivity of the human resources at the highest business standards. External Environment It is important for Blundstone to analyse the external environment of the UAE market while planning its international staffing policy. The external environmental challenges have been discussed herein below: Changes to the economy: Management of Blundstone must consider the changes in the economic policy of the UAE. It is important to consider the employment policies and minimum wage rate of the host government while recruiting staffs in the new market (Fish, 2014). Cross-cultural practices: Cross-cultural practices and believes of the local people in the UAE must be considered while planning the international staffing policy and employment practices (Mankelow, 2008). Along with that, the organisation needs to take care of the cross cultural workforce to maintain harmony at workplace. Demographic Factor: UAE is a Muslim state that carries on conservative practices. Women are not allowed to work and believe to be the home-maker of the family (Liao, 2010). Along with that, the presence of a huge number of expats in the region makes the company consider other cultures to have an effective workforce. Communication gap: Communication gap will be the major challenge in the new market. It is important to understand the practices of local people and match up with their culture to seek success in the UAE market. Approach to international staffing Based on theoretical concepts, there are three significant types of staffing approaches related to IHRM such as ethnocentric staffing, polycentric staffing and geocentric staffing. In the current scenario, Blundstone Footwear must utilise both the identified staffing policies to manage the human resources in IHRM. Ethnocentric Staffing: By following such staffing policies, the organisation can designate the top ranking human resources of the home country to the most efficient positions in case of operations management in the UAE (Michael and Chris, 2010). For instance, in the UAE office, the executive positions have been designated to the high ranked Australian employees of Blundstone Footwear. Through such staffing policy, the organisation can ensure that the management of the IHRM will be in the hands of experienced Australian staffs in the host country. Polycentric Staffing: On the other hand, polycentric staffing policy has assigned the local experienced and talented human resources at the top positions to identify the local culture and operational tactics of the market competitors (Vecchi and Brennan, 2009). Blundstone Footwear can also utilise the staffing policy at some position after the workforce has been settled in the host country. Geocentric Staffing: Last but not the least; geocentric staffing policy recruits the most suitable employees for a given position irrespective of the background of the human resources. Such effective strategic policy can be highly advantages as the relocation cost of the employees and workplace diversity management cost can be saved simultaneously (McMahan, Bell and Virick, 2008). Moreover, such staffing policy can provide more management strength to Blundstone Footwear in the UAE market. Recommendation Through the identification of the issues attached to IHRM of Blundstone Footwear, some of the standard recommendations have been suggested for the organisation to achieve sustainable management. Identify best recruitment policy: By considering the organisational approach in the UAE market, the organisation must ensure to identify the best recruitment policy to select the top most ranked officials and select the most efficient human resources in the host country. Use selection tests: Through significant selection tests, the organisational management can recruit best in the business. Also, the selection tests can provide a detailed analysis of the performance standards required to be fulfilled. Minimise indirect cost: In case of unnecessary expatriate operations, the organisation can hire local executives using polycentric staffing policy to save associated relocation expenses and other indirect costs. Conclusion It can be seen through the above analysis that Blundstone needs to implement international staffing policy after considering the constraints of the internal and external environment in the UAE market. There is a need to consider the cross cultural practices to seek success in the international market. Along with that, the organisation needs to minimise indirect cost, implement international recruitment policies and use different selection tests to employ best talents in the UAE market. Hence, international staffing policy is required to expand business over the global market. References Brunetto, Y., Farr-Wharton, R. and Shacklock, K. (2011). Using the Harvard HRM model to conceptualise the impact of changes to supervision upon HRM outcomes for different types of Australian public sector employees.The International Journal of Human Resource Management, 22(3), pp.553-573. Burke, R. (2010).Cross cultural management. Bingley, UK: Emerald. 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