Portfolio Report IHRM

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Mount Kenya University *

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BAF 1201

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Management

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Nov 24, 2024

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Yashvi Patel IHRM Portfolio 20449285 International Human Resource Management PORTFOLIO ASSIGNMENT by Yashvi Patel Student ID 20449285 08.05.2023 1

Yashvi Patel IHRM Portfolio 20449285 Executive summary Global Learnings Inc., a prominent provider of educational materials in the United States, is currently considering the prospect of expanding its operations to Japan by acquiring a local high-tech company. This report examines key aspects of international expansion, including organisational structure, staffing options, cross- cultural management, and training and development strategies. We recommend that Global Learnings Inc. implement a geocentric matrix organisational structure for its international operations. The proposed framework aims to improve the coordination and communication channels between the parent organisation and its Japanese subsidiary. Additionally, it seeks to facilitate local responsiveness and capitalise on global synergies. Three applicants were assessed for the role of plant manager, namely Hoshino Taikuchi, Jason Beatie, and Jess May. Based on Jess May's experience, motivation, alignment with the company's vision, and ability to navigate the local labour landscape, they were identified as the most suitable candidate for the role. To attain success in the Japanese market, it is essential for Global Learnings Inc. to adopt a cross-cultural management strategy that acknowledges and respects local cultural customs, values, and traditions. It is recommended that the company allocate resources towards cultural awareness training and cultivate a leadership style that is attuned to cultural sensitivity. It is imperative for Global Learnings Inc. to devise and execute customised training, development, and performance management strategies for its international operations. The aforementioned offerings comprise cross-cultural training, language instruction, and expatriate support initiatives, in addition to routine performance evaluations and feedback channels. 2

Yashvi Patel IHRM Portfolio 20449285 Contents Executive summary .................................................................................................... 2 Introduction ................................................................................................................. 4 The Organizational Structure .................................................................................... 4 What type of organizational structure should Global Learnings Inc. adopt for its overseas operations, and why? ....................................................................... 4 The Staffing Context ................................................................................................... 5 Global Learnings Inc. is considering sending one of their employees overseas to manage the new business. What staffing options would be recommended, and what are the reasons for suggesting these options? ....... 5 The Cultural Context .................................................................................................. 7 Global Learnings Inc. acknowledges the importance of considering the cultural context in a potential overseas venture. What kind of cross-cultural management approach and knowledge would be recommended, and why? . .7 Cultural Intelligence (CQ) ....................................................................................... 7 Hofstede's Cultural Dimensions ............................................................................. 8 The International Training, Development & Careers Context ............................. 8 If Global Learnings Inc. moves forward with its overseas operations, what types of training, development, and performance management measures will it need to consider? Why? ........................................................................... 8 Cross-cultural training ............................................................................................ 8 Technical and functional training ............................................................................ 9 Leadership and management development .......................................................... 9 Performance management .................................................................................. 10 Conclusion .................................................................................................................. 10 References ................................................................................................................. 11 Appendix ..................................................................................................................... 12 3

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Yashvi Patel IHRM Portfolio 20449285 Introduction According to the analysis, it is evident that Jess May is the most suitable candidate for the position of plant manager. Despite her lack of Japanese language skills and prior experience with Global Learnings Inc., her experience in the East Asian market, strong motivation, and alignment with the company's vision are significant factors that outweigh these limitations. Given Jess's experience in working with diverse cultures, it is probable that she will be able to adeptly navigate the labour landscape in Japan, which includes effectively managing relationships with unions. Furthermore, it is essential to comprehend the unfavourable perspective taken by Hoshino. The individual expressed opposition towards the acquisition and has exhibited unfavourable remarks regarding Global Learning Inc. This may pose a challenge in terms of establishing congruence with the company's objectives and cultivating a constructive professional rapport with the parent entity. Similarly, Beatie's limited international experience and uncertain commitment to remaining in Japan may pose challenges for him in effectively navigating the local labour landscape and fostering enduring relationships with employees and unions. The Organizational Structure What type of organizational structure should Global Learnings Inc. adopt for its overseas operations, and why? Organizational structure refers to the way a company arranges its internal hierarchy, roles, and responsibilities to achieve its goals and objectives effectively. It determines how information flows, how decisions are made, and how resources are allocated within the organization (Kondalkar, 2020). Based on the aforementioned factors, it is recommended that Global Learnings Inc. adopt a matrix organizational structure for its overseas operations. The matrix organizational structure integrates functional departments such as HR, marketing, and finance with divisional units such as product lines or geographical regions (Arif, et al., 2019). This results in a two- dimensional framework where employees are accountable to both a functional 4

Yashvi Patel IHRM Portfolio 20449285 manager and a divisional manager. The implementation of this dual reporting system facilitates improved communication and collaboration among divisions, which is imperative for Global Learnings Inc. in light of its unique strategic focus areas. The adoption of a matrix organizational structure for the operations of Global Learnings Inc. in Japan offers several benefits. The Staffing Context Global Learnings Inc. is considering sending one of their employees overseas to manage the new business. What staffing options would be recommended, and what are the reasons for suggesting these options? Global Learnings Inc. has three main staffing approaches to evaluate for the management of its recently established Japanese subsidiary: ethnocentric, polycentric, and geocentric staffing strategies. The practise of ethnocentric staffing involves the selection of a manager from the parent company's country of origin to supervise the activities of the company's overseas subsidiaries (Zheng, and Smith, 2019). It is recommended to designate Jason Beatie, the American manager, as the leader of the Japanese subsidiary for optimal results. The principal advantage of this methodology lies in the manager's familiarity with the organization's culture and principles, ensuring alignment with the parent company's goals and strategies (Lee, et al., 2022). However, it is crucial to acknowledge that this approach has certain limitations, including the potential difficulties in adapting to the local culture and understanding the intricacies of the Japanese market. Furthermore, it is possible to face opposition from the local staff members who might perceive the manager as an external entity. The strategy of polycentric staffing entails the selection and hiring of a manager who is a citizen or resident of the host country to take charge of the subsidiary's operations (Alugbuo, et al., 2022). Based on the circumstances presented, it is advisable to assign the responsibility to Hoshino Taikuchi, the Japanese manager from the recently acquired high-tech firm. This approach provides notable benefits, including a thorough understanding of the regional culture, market, and business practises, as well as established relationships with local personnel, suppliers, and customers. Nevertheless, there may be obstacles in achieving alignment with the 5

Yashvi Patel IHRM Portfolio 20449285 culture, values, and strategies of the parent company, and communication barriers with headquarters could emerge as a result of disparities in language and cultural heritage (Mukhtаrovа, et al, 2019). The geocentric staffing approach prioritizes the recruitment of the most qualified candidate, irrespective of their country of origin (Zhu, 2019). In this scenario, the optimal selection would entail opting for Jess May, an accomplished Australian professional with a wealth of experience in the high-tech industry and a strong understanding of the East Asian market. The main benefits of this approach are a varied range of skills and a high level of motivation and adaptability (Cassila, 2023). Nevertheless, there are certain potential drawbacks that need to be taken into consideration. These include the challenges of cultural adaptation, given that Jess May does not possess proficiency in the Japanese language and lacks prior experience of working in Japan. Additionally, there may be a requirement for supplementary support and resources to facilitate her integration into the local business environment. After careful evaluation of the advantages and disadvantages of various staffing approaches, it is recommended to adopt a combination of polycentric and geocentric staffing. The proposed strategy entails designating Hoshino Taikuchi as the local manager for the Japanese subsidiary and enlisting Jess May's services as a project manager or advisor. The Cultural Context Global Learnings Inc. acknowledges the importance of considering the cultural context in a potential overseas venture. What kind of cross-cultural management approach and knowledge would be recommended, and why? It is imperative for Global Learnings Inc. to take into account the cultural context while expanding its operations in Japan. The implementation of efficient cross- cultural management practises can aid the organisation in comprehending and successfully operating within the indigenous business milieu, fostering effective communication and cooperation among staff, and modifying its products and tactics to cater to the demands of the foreign market (Kucharska & Kowalczyk, 2019). It is 6

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Yashvi Patel IHRM Portfolio 20449285 recommended to utilise two significant cross-cultural management approaches, namely cultural intelligence, and the incorporation of Hofstede's cultural dimensions. Cultural Intelligence (CQ) Cultural intelligence pertains to an individual's capacity to identify, comprehend, and adjust to diverse cultural environments. The concept comprises of four fundamental elements, namely motivational, cognitive, metacognitive, and behavioural (Contractor, et al., 2020). The motivational component pertains to the inclination to acquire knowledge about diverse cultures. The cognitive component involves understanding the differences and similarities between cultures. The metacognitive component involves the ability to apply cultural knowledge to various situations. Lastly, the behavioural component pertains to the ability to adapt one's behaviour to different cultural settings. At Global Learnings Inc., the acquisition of cultural intelligence is essential for managers and employees to gain a deeper understanding of Japanese culture, facilitate effective communication with local staff, and make informed decisions. Hofstede's Cultural Dimensions Hofstede's theoretical framework comprises six distinct dimensions, namely power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, long-term orientation, and indulgence-restraint. Through an analysis of Japan's scores on these dimensions, Global Learnings Inc. can obtain valuable insights into the cultural values and priorities that shape the local business environment, employee conduct, and customer preferences. The International Training, Development & Careers Context If Global Learnings Inc. moves forward with its overseas operations, what types of training, development, and performance management measures will it need to consider? Why? As Global Learnings Inc. expands its operations in Japan, it is imperative to contemplate training, development, and performance management strategies that address the distinctive requirements of a global workforce. Incorporating these 7

Yashvi Patel IHRM Portfolio 20449285 measures will aid in guaranteeing the seamless assimilation of personnel, augmenting their competencies and drive, and harmonising their output with the organization's objectives and tactics. Cross-cultural training To enhance the comprehension of Japanese culture and business protocols among both expatriates and local employees, it is recommended that Global Learnings Inc. offer cross-cultural training programmes. The programmes offered may comprise of language courses, workshops aimed at enhancing cultural awareness. Technical and functional training To attain the company's objectives of enhancing quality and promoting innovation, it is vital to establish technical and functional training programmes that equip employees with the requisite expertise and competencies to design and provide exceptional educational programmes (Ozkeser, 2019). The curricula of the programmes may include product creation, quality management, and the implementation of advanced technology and pedagogical methodologies. Leadership and management development Global Learnings Inc. should provide leadership and management development programmes. The programmes may encompass training sessions on various aspects such as effective communication, decision-making, team building, and conflict resolution. Investing in leadership development can facilitate the creation of a robust talent pipeline (Alrowwad, et al, 2020). Performance management Global Learnings Inc. should consider adapting its performance management measures to accommodate cultural differences and local business practises in the global context (Ozkeser, 2019). It is recommended that the company consider utilising a blend of individual and team-based performance metrics, taking into account the collectivist values inherent in Japanese culture. 8

Yashvi Patel IHRM Portfolio 20449285 Conclusion Based on the market analysis and assessing all the presented option to choosing the next manager, it is evident that, the risks outweigh the benefits. Therefore, Global Learnings Inc. Should consider expanding to Japan, a market that has not been widely exploited. Despite the focus to expanding on this new market, it is vital to consider a series of hurdles facing the company in the new market. First and foremost, the issue of strong Union in Japan reduces the company’s bargaining power, law differences of hiring and firing employees at will have to be compromised on this new expansion, which reduces the company’s power. However, when flipping the coin on the other side, it is evident that there is more than meets the eye in terms of business. First and foremost, this is the opportunity for Global Learnings Inc. to expand internationally. Secondly, this expansion will present an opportunity for the company to deal with new markets and hopefully increase its revenue. 9

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Yashvi Patel IHRM Portfolio 20449285 References Alrowwad, A.A., Abualoush, S.H. and Masa'deh, R.E., 2020. Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance. Journal of Management Development , 39 (2), pp.196-222. Alugbuo, C.C., Ikwumezie, A. and Ugochukwu, C.O., 2022. Managerial Approaches and Organizational Performance of Multinational Enterprises in Nigeria. Central Asian Journal of Innovations on Tourism Management and Finance , 3 (6), pp.76-88. Arif, S., Zainudin, H.K. and Hamid, A., 2019. Influence of Leadership, Organizational Culture, Work Motivation, and Job Satisfaction of Performance Principles of Senior High School in Medan City. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) , 2 (4), pp.239-254. Cassila, O., 2023. Human Resources International Organizations. Contractor, F.J., Dangol, R., Nuruzzaman, N. and Raghunath, S., 2020. How do country regulations and business environment impact foreign direct investment (FDI) inflows?. International Business Review , 29 (2), p.101640. Kondalkar, V.G., 2020. Organizational behaviour . New Age. Kucharska, W. and Kowalczyk, R., 2019. How to achieve sustainability?—Employee's point of view on company's culture and CSR practice. Corporate Social Responsibility and Environmental Management , 26 (2), pp.453-467. Lee, H.J., Yoshikawa, K. and Harzing, A.W., 2022. Cultures and Institutions: Dispositional and contextual explanations for country-of-origin effects in MNC ‘ethnocentric’staffing practices. Organization Studies , 43 (4), pp.497-519. Mukhtаrovа, K.S., Chernov, A.V. and Manapova, U.M., 2019. Human Resource Management in Multinational Corporations. Central Asian Journal of Social Sciences and Humanities , 2 (2), pp.34-37. Ozkeser, B., 2019. Impact of training on employee motivation in human resources management. Procedia Computer Science , 158 , pp.802-810. Zheng, Y. and Smith, C., 2019. Tiered expatriation: A social relations approach to staffing multinationals. Human Resource Management , 58 (5), pp.489-502. Zhu, J.S., 2019. Chinese multinationals’ approach to international human resource management: A longitudinal study. The International Journal of Human Resource Management , 30 (14), pp.2166-2185. 10

Yashvi Patel IHRM Portfolio 20449285 Appendix A. Market Research Findings The market research carried out by Global Learnings Inc. has identified noteworthy prospects and anticipated demand in Japan for educational resources, specifically in the areas of technology, science, and business applications. This provides a compelling justification for the company to venture into the Japanese market. B. Organizational Structure Theory The geocentric matrix is an organisational framework that aims to achieve a balance between centralisation and decentralisation by including both global and local perspectives. This organisational design allows the business to respond quickly to changes in regional markets and improves internal communication, coordination, and resource allocation. C. Cross-Cultural Management Theory The cultural dimensions’ theory of Hofstede is a valuable instrument for comprehending cultural differences between nations. Key dimensions to consider in the context of Global Learnings Inc.'s expansion into Japan are power distance, individualism versus collectivism, and uncertainty avoidance. Adapting management practises to the local cultural environment increases employee satisfaction and productivity. D. Staffing Options for International Business There are three distinctive personnel options for international businesses, which includes ethnocentric, polycentric, and geocentric. E. Japanese Labour Landscape Japanese human resources management requires a thorough understanding of labour regulations and unions. Durable employment regulations, valid termination grounds, and centralised labour unions negotiating collective bargaining agreements are important elements. 11

Portfolio Report IHRM

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