Discuss About The Globally Three Strategies That Can Employ?
A company that operates globally has three strategies that it can employ when engaging in staffing approaches and the strategies have benefits and disadvantages. The first approach that may be used and is the one that forms the basis of this study is the home country nationals. In this strategy, the company hires the citizens where the parent country is located to run and manage some of its business overseas. Such individuals are known as expatriates. Communication is always important for any strategy that is the home office needs to know how the foreign office is working and conducting its business.
Factors to be considered
However, some factors need to be considered when using the home country nationals in a global arena. If the global company feels that there is need to exercise control of the subsidiary to a great extent, then it will employ the home country nationals. Affiliates as part of the parent company have their independence, more so in the case where they are located in foreign countries (Armstrong & Taylor, 2017). In such situations, there are many things that the parent company may not have knowledge of if the subsidiary is left to run on its own. The policies that run the parent company need to be incorporated in the subsidiary to achieve the desired objectives. Issues such as revenues and profits are susceptible if left in the hands of managers that lack knowledge of the operations of the parent company and it for such reasons that a company will consider such a factor.
Laws governing taxes
Expatriates working in another nation rather than their native land are subjective to the laws that govern the taxation policy in both their home country and the foreign country. The Human resource has the responsibility of designing the remuneration in such a way that it can accommodate the tax impacts such that it ensures there is no tax incentive or disincentive. Australian tax laws are different from those of Korea and as such the Human resource has to make sure issues with taxation are dealt with in the right manner to ensure the burden of taxation is does not impact heavily on the tax bearer which may discourage the manager from performing diligently (Bruce, 2013). In some countries, the laws governing taxation are tight making the disposable income in such places less. It is, therefore, the role of the Human resource to make sure that it adjusts the salary to ensure that that the same package that was offered in the home country is the same as it is in the foreign country. On the other hand, the tax system may be in such a way that it is loose making the employees benefit from such incentives offered by such taxes. It is, thus, the mandate of the HR to make sure that it adjusts the salary of the expatriate per the tax policies in the foreign country.
International relocation and orientation
Orientation and international relocation entail some activities such as pre-departure training in the case of having varying activities in the foreign country. It is true and evident that some policies and practices should be learned by the manager before leaving the home country due to the complexities in the foreign country. Appropriate training ensures that the manager is conversant with the operations of the firm in Korea and has the effect of saving time and resources that would be spent in Korea trying to equip the manager with the new changes. It is the duty of the HR to check and verify the immigration details and travel details for the manager (Bryson, 2003). In some countries, there are travel bans thus limiting the nationals from a particular country from entering such countries.
However, the Australian nationals are free to work and visit countries such as Korea as there are no travel bans imposed between the two countries. Housing in foreign nations is also a priority that should be given to expatriates. It is for the Human resource manager to ensure that adequate shelter facilities are provided for the manager in Korea to ensure a conducive environment (Dewan et al., 2016). In the case that the manager wishes to move the family to Korea, then it becomes necessary that some arrangements need to be done, for instance the school for the children, in the case there are children involved with such a settlement (Budhwar, Schuler & Sparrow, 2009). Lastly, issues such as how the manager will receive a salary while abroad are also important.The Human resource manager needs to organize payment options such as banking and insurance schemes for the manager.
Host Government relations
The Human resource manager should ensure that all the necessary documents needed in the work place are obtained. Such documents include work permits in Korea (Edwards, 2016). It is a custom that whenever an expatriate is working overseas that they are required to provide a work permit. In some countries, such as the developing nations, the work permit is easily obtained while in others such as the developed nations, a work permit may be difficult to get. It is the role of the HR manager to ensure that they check the relationship with the country that the expatriate is working and the ease of obtaining the work permit in such a country.
Knowledge of the language in the foreign country
It is important for the human resource manager to make the necessary arrangements for the manager I terms of the working language in the foreign country. If the manager has no knowledge of the official language in Seoul, then the human resource can hire the services of a translator so that the manager can work effectively eliminating the challenges of a language barrier more so in the administration of the subsidiary (Ivancevich & Konopaske, 2013). Alternatively, the HR can invest in training the manager the foreign language a move that can be time-consuming and costly in the long-run.
One of the main worries that most multi-national companies fear most is the political risks that may arise. It is evident that most countries are politically unstable, something that most HR managers must worry (Johnson, 2014). The issue of terrorist is also imminent in the 21st century, and they target the foreigners as they are perceived as a threat and are determined to rip the country off its resources. Issues such as evacuation strategy plans should be put in place by the HR if Seoul faces political upheavals.
Employment relations and their implications on the manager
Employee relations are a function of the human resource management, and as such, it is important for any firm to consider such a service. Employee relations differ among countries and can impact either positively or negatively depending on the nation where one is working. In this context, it is important to discuss issues such as performance in the work place, disciplinary action and the promotion policies (Kramar, 2013). Furthermore, issues such as the promotion of awareness of labor laws and the legislations governing the human resource management.
The manager may have to change the strategies that are used in assessing performance in South Korea since Korea is a different country from Australia thus commands a change of the mechanisms. Normally, as a manager, there is the responsibility to ensure that the subsidiary does not perform poorly and thus there is need to gauge what constitutes the poor performance. On the other hand, the manager has to ensure that there is a good performance which means the manager has to devise a plan of action to achieve high results and generate profits for the subsidiary (Krell, 2014).
The process of identifying and recognizing promotions in a work place is important in a work place as the employees feel recognized and motivate them to perform even better for higher ranks in a firm. The manager has a task of awarding promotions depending on merit and recommendations for some of the staff in the subsidiary (Krinzman, 2015). However, in the area of promotions, there are many controversies where some employees will argue that there is favoritism if the manager awards other Australian employees who might be working in the firm. Such an area may impact either positively or negatively on the part of the manager in trying to promote those that the manager thinks that they deserve promotions.
Every country has laws that govern the relations between employers and employees in the work place. However, the labor laws are different, and changes and amendments have to be made to accommodate the different countries. In some countries, there are labor unions and movements that champion the rights of the employees in such countries. The labor unions are most common in some of the developing nations and Korea has some of these associations that advocate the rights of the employees (Mayhew, 2015). In some instances, the employees may demand better pay and working conditions forcing some of the employees not attending their duties at the work place. An industrial strike is a good illustration and may force the manager to take the necessary step of laying off the workers who took part in the
Culture also may have implications for the role of a manager while working in South Korea. The working days are the most affected since there are specific days that employees should go to work. In most Muslim countries people do not work on Friday since it is the day of worship. On the other hand in places like Australia where the majority are Christians the day of worship happens to be on Sunday. The manager may have to reschedule in the case that the working days are conflicting with the day for leisure. The language of communication is also fundamental in the case that the official language is a not the same as the Australian official language. Fitting also in the South Korean culture might be a problem as in most cases people are redundant in learning a new culture due to the complexities associated with such cultures. The type of food also offered in South Korea is also of concern to the manager since it indeed a diet that is not used in Australia (Price & Price, 2011).
Remuneration and bonuses
In developed economies such as Australia, there are rewards in the work place, and such incentives are meant to motivate employees in the work place to deliver and give the best. However, in other countries such as Korea, they may lack bonuses thus demotivating the manager. Performance bonuses are recognized in most firms in Australia and may not work for a South Korean company. Other benefits such as health schemes and insurance schemes in work places may not be the case with South Korea and as such may have an implication on the life the manager while working (Zalcman, 2013).
Issues with the human resource and employment relations are important for expatriates since they are relocating to a foreign country with different labor laws from the countries of origin. The Human resource management has a role to play in ensuring that they address such issues to avoid negative implications on the expatriates.
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