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Phase A: Problem Identification
When doing the job of a Human Resource professional, one encounters many challenges as there are many problems one is expected to solve. When the organization is large and is getting lager, more and more problems are encountered. While other employees cannot solve some problems, it becomes the work of the Human resource professional to know how to contain the situation (Taylor 960).
The Text- Mark Company is a manufacturing company that deals in production of computer input and out put devices, namely scanners and printers. It is also involved directly in the supply of the devices and the product promotion. The company developed as a spin- off company from the Dell Company. Dell Company deals in computer production. Dell gave full support to the growth of this company during is young stages by setting up its production facilities for Text-Mark Company at San Antonio. The company realized massive growth with time. It developed other production facilities by itself in other parts of the world like Mexico, Scotland, and India. The company management was quite ambitious and was planning to develop more and more production facilities throughout the world. In San Antonio, Carolina and Scotland, the company had opened a research and new product development activities. It later opened customer service and sales offices in Asia and some parts of Europe.
As it developed this way, it encountered challenges in human resource management. Some of the problems encountered were explicit, and others were implicit. Among the explicit ones, was the problem of interacting with the local people and the government in the different countries where the opened offices. For example in Mexico, the company workers had problems as they constantly kept engaging in conflicts with the people and the government. Conflicts with the government caused delays in acquiring necessary thing like permits and authorizations that would allow smooth operations. This caused poor performance unlike what was expected. Implicit problems included economic uncertainties in a foreign country. Entry into Mexico caused enmity with rival companies. There were also disagreements between the employees within the company.
Another problem encountered by Text-Mark Company was the language barrier. Though the company tried to give language courses to its expatriates, the time for learning was not enough. In most cases, they left the country before the end of the course and thus they ended up being not fully equipped with the language. In multinational businesses failure to know foreign languages adversely affects the exploitation of potential and leaves the staff unequipped for international competition. The problem of a language barrier is a long term problem that this company suffered. After expatriation, the repatriates would encounter the problem of resettlement.
Phase B: Analysis Phase
Looking at the company’s resources and environment through the SWOT analysis, the strengths, weaknesses, opportunities and threats can be seen clearly. This analysis looks into the companies internal and external factors that affect its operation (Scroggins 411). The company can know where it performs better, where its rivals out do it, how the business is utilizing the available opportunities and how it is interacting with its environment. This company had several Human Resource policies like having expatriates trained foreign languages though it was not state as a formal policy in the company. The associate Director of Human Development, Eric Christopher, had an idea of having formal policies on international assignment of the company’s employees. Juanita Roberto, the Vice President for human resource wanted the cost of activities of expatriates reduced as much as possible. The delegates of the Vice President wanted the expatriate assignments streamlined and to have the appointments of the HCNs speeded up.
The financial status of the company was excellent and it was able to open more branches, and it made significant remuneration of its employees. The opportunities are external to the company and are environmental factors, while strengths and weaknesses are internal relating to the current state of affairs. The company had tried as much as possible to grasp all opportunities available anywhere in the world. It expanded its market and always tried to find ways of going global. The threats encountered included rivalry from counterpart companies in the foreign countries where it ventured. An example of such a case was in Mexico (Kidger 31).
The strengths that the company banked on included highly qualified employees like Eric and Fred. Fred was an uncommonly hardworking engineer and he is described as promising and bright. He was an employee of the company since its beginning as a spin off company of Dell in 1978. In 1983, he went to Scotland branch of the company where he performed exemplary well, and promoted to the head of the Engineering team in Mexico. In Mexico, the Engineering team did not relate well with the local people. This is a problem that would have been solved by promoting public relations of the team and the company at large.
Another advantage that Eric had besides being well educated was that he was widely travelled and had good knowledge of many languages. This reduced the problem of language barrier when Eric was at work. He had travelled across Europe, South America and North America. During his earlier life he had worked in places that exposed him to humanity and he had therefore acquired public relations skills. Internally, the company maintained good communication which promoted its sustainability. The management team would conduct meetings in which they would discuss policies and the best way forward. Besides there strengths, the company had some weaknesses. Eric felt that the company would have performed better in India had the head of engineering team, Fred, accepted to train the local constructors and to give them some his responsibilities. Disagreements were also drawbacks of the company. When Eric expressed that he blamed Fred for the failure of the company in India, Fred hit back by arguing that the engineers at San Antonia needed to go abroad as they were highly qualified.
Most of the problems highlighted above can be solved by the management as Eric was saying. When the company ventured into China, he made a proposal that more rigorous training on international assignments should be conducted. He had a task of knowing how rigorous training would be conducted cost effectively since his boss advocated for cost effective activities all times. Eric suggested that training foreign languages to be conducted and the relatives of the employee undertaking language course should also be trained. All the cost paid by Text-Mark. He also suggested that employees of Text-Mark with experience to be consulted so that they can share their knowledge for the benefit of the company. Once the expatriate and his family were in the foreign country, Text-Mark would ensure that they are settled and the children have joined good schools. On returning to their original country, the employees and their families would be taken for counseling within the first two months of re-entry. Internal conflicts also would get solved amicably by not allowing emotions dominate (Taylor 961). Eric was a good manager of temper as seen during his argument with Fred. This attitude of being slow to anger would help the company grow as it allows accommodation of fellow work mates.
Phase C: Alternative solutions to the problem and recommendations
The problems stated above have alternative solutions. The problem of language barrier has negative impacts on a company in the international market. Employees who have little knowledge of other languages are usually ill equipped and cannot work effectively in foreign countries where other languages are used. Training of employees on foreign languages will make the company compete effectively in the international market. It will help company executives foster their carriers and speed up foreign expansion. Senior managers should be highly trained to read and write international languages so that they are fluent when speaking. Fluency will not only facilitate good communication but will also earn the managers respect from their colleagues and other workers.
Learning other people’s culture is another key to competing at international level. In a country like China, it would be important for the company’s employee working there to learn the Chinese culture. Chinese culture is very different from other people’s culture which means that the Chinese way of problem solving is also different. The challenges that people with a certain culture have undergone make them have a different view of problems (Plessis 180). Involvement of the locals of a different country in the operations of the company is also an important tool for foreign expansion. This would help to increase a company’s popularity among the citizens of the foreign country. This goes hand in hand with paying attention to workplace diversity of employees. The trend of employment tends to differ from country to country based on cultural background, sex and age among other factors. With this knowledge, the company will be able to manage its work force quite creatively. If the company fails to respect the work place diversity it risks loosing market to rival companies. Creativity in business is a crucial tool for success of human resource management. Application of creativity would have seen some of the problems in the company get solved. The creative mind of Eric suggested that the problem in china would be solved by promoting a rigorous training on external attachment.
Besides these solutions, the company’s employee should be educated on the rules and regulations of conducting business in a foreign country. Text-Mark Company found itself in conflicts with the authorities in Mexico, a problem that resulted in poor performance. This is a problem that can cause the company to totally fail in its foreign ventures or even total collapse of the entire company.
There are several recommendations that a company should try to heed. Modern information technology is one of them. Management Information Systems (MIS) are systems created to help in sharing information within a company. They keep track of a company’s daily activities and data. Thy make the work of data analysis easier and the company can therefore analyze its performance over time. Good analysis of the company will enable the management team make the best policies and decisions. Information is the basis of policy and decision making. The Human Resource manager should know the type of information to be input into the Management Information System. Only the information relevant to HR decision making should be input. Otherwise the system will be of no use to the company. Another recommendation is the company to ensure that its employees are highly qualified and have great amount of knowledge about foreign countries. The employees should be trained at least one international language so that they are able to communicate effectively on the international arena. The management is also encouraged to have a good image of the lifestyle of the people in the foreign country. There should be clear knowledge about the remuneration requirements in the country so that the company does not end up in conflict with its employees for underpayment. Besides that the company should also be aware of other payments such as the statutory deductions such as taxes, provision of insurances and pensions.
Managing effective communication is another recommendation for the company. Communication concerning the affairs of the company should be clear. It is a necessary tool for active involvement of employees and motivation. The management should try hard to uphold face to face communication. It helps the participants to share ideas and express them effectively. Face to face communication allows the managers to communicate instructions to the workers and the workers can ask for clarification immediately (Plessis 179).
The company should also take into consideration its competition for talent. Many international companies have emerged and have engaged in a stiff competition for human resource. Every company wants to get the best employees for top management. This is where different types of companies have similarities. The company should get creative and know the right companies to trade with, whether in its sector or in a different sector. Formation of trade organizations is another way that the company can go (Kidger 32). These trade organizations provide a common pool for knowledge of the international environment. The company personnel will be able to share knowledge with their partners such that they make united decisions that will favor all companies that are participants. If a company is left out by its counterpart companies it would find itself in a very difficult economic situation while every other company would be reaping full benefits of the association.
Conclusion
Because of increased globalization, companies should be very keen in human resource management lest they become unable to venture successfully in the international market. Text-Mark is a company that deals in computer input and out put devices that begun as a spin off company from the Dell Company. It began its operations as just a national company but it experienced growth that led it to becoming international. The company was experiencing a stable financial status and it would remunerate its employee appropriately and open new production facilities world wide. On going international it experienced quite a lot of problems in human resource management. These Human Resource Management crises became worse when the company open new branches in Asian. These problems can be very detrimental to any company in the international arena. Breaking language barrier and promoting cultural interaction between employees of different societies are crucial tools in fostering a company’s position in the international market.
Works Cited
du Plessis, Andries,J. "International Human Resource Management: An Overview of its Effect on Managers in Global Organisations." Interdisciplinary Journal of Contemporary Research In Business 2.4 (2010): 178-92. ABI/INFORM Complete. Web. 30 May 2012.
Kidger, Peter. "Human Resource Management Responses to Global Strategy in Multinational Enterprises." Management Research Review 23.2-4 (2000): 31-2. ABI/INFORM Complete. Web. 30 May 2012.
Scroggins, Wesley A. "International Human Resource Management: Diversity, Issues and Challenges." Personnel Review 39.4 (2010): 409-13. ABI/INFORM Complete. Web. 30 May 2012.
Taylor, Sully, Schon Beechler, and Nancy Napier. "Toward an Integrative Model of Strategic International Human Resource Management." Academy of Management.The Academy of Management Review 21.4 (1996): 959- 67. ABI/INFORM Complete. Web. 30 May 2012.
