Expatriate assignments

 This module explain how can some situations make workers change their workplace or location of work, how can organizational country culture affects employees behavior.

Expatriate Assignments (EA) help individuals obtain new experiences and use them to have a better knowledge for their careers. They are characterized by temporary assignments and centered on building skills across companies rather that ascending hierarchies. EA focuses on return to employment in the same company and firm system after been abroad, and the OE experience typically involves inter-company rather than intra-company job transfers.

The main objective of an expatriate is to maintain significant attachments to their home countries while expanding their career opportunities by working abroad.

The main characteristic of an expatriate is to build relevant skills and ascend in status within one company.

Types of expatriate assignments:

1.Long-term expatriate assignments: Expatriate assignment is referred to as a long-term assignment where the employee and his/her spouse/family move to the host country for a specified period of time, over one year.

2. Short-term expatriate assignment: is an assignment with a specified duration, usually less than one year. Family may accompany employee.

3. International commuter: is an employee who commutes from the home country to a place of work in another country, usually on a weekly or bi-weekly basis, while the family remains at home.

4. Frequent flyer: is an employee who undertakes frequent international business trips but does not relocate

Question:

Analyze the potential implications of the Co-determination principles over the organization’s decision-making process from the perspectives of the managers and the employees.

Co-determination is the possibility that employees can have a role in the management inside the organization, the word co-determination have origin from the word “Mitbestimmung” in German, the origins of this management style were initially used in Germany.

This principle allows employees to have discussions with the employers in a skilled supervisory board.

“The German model of co-determination is based on indirect participation, with elected worker representatives and formalized institutions, with rights supported in law. In contrast to the UK, the German system is highly juridified, with a considerable amount of legislation providing a constitution of rights for employees (Lane, 1989; Furstenburg, 1991; Lawrence 1992)” [1]

Inside the organization co determination principle have many advantages that provide more general training and supports a high-skill equilibrium. Co-determination allows having diversity of opinions at the moment of taking a decision, and provides a feeling among employees of participation and equal importance in all levels of the hierarchy.

Co-determination in the decision-making process is extremely important not only to employees because they are able to express their opinions but also to manager because they can hear diverse ideas and solutions with different perspectives; it is also important because employees have a representation of their opinions and feelings in the board of directors, this give to managers a more complete overview of the organization situation.

References:

Expatriate Assignment Versus Overseas Experience: Contrasting Models of International Human Resource Development. Kerr Inkson, Judith Pringle, Michael B. Arthur, Sean Barry.

Royle T. Avoidance strategies and the German system of co-determination. International Journal of Human Resource Management [serial online]. December 1998;9(6):1026-1047. Available from: Business Source Complete, Ipswich, MA. Accessed October 18, 2010.

[1] FitzRoy F, Kraft K. Co-determination, Efficiency and Productivity. British Journal of Industrial Relations [serial online]. June 2005;43(2):233-247. Available from: Business Source Complete, Ipswich, MA. Accessed October 19, 2010.

Piette, Jean-Jacques. 2004. “Understanding Management German style”. Les Amis de L’ecole de Paris.

http://inspiredexpatriates.com/2009/11/13/xpat-spouse-factor

http://www.expatriatefoundation.com/HRCI_Recertification.html

Images taken from:

- http://www.libraries.rutgers.edu/rul/about/diversity/diversity.gif

- http://frankiemao.com/wp-content/uploads/2010/09/skills.jpg 

- http://www.google.com.co/imgres?imgurl=http://www.cartoonstock.com/lowres/jfa1035l.jpg&imgrefurl=http://www.cartoonstock.com/directory/f/family_hierarchies.asp&

Managing change and conflict

Organizations have to be always in constant change and improving their management techniques according to the economic, social and legal environment, when an organization is in constant change it is called a dynamic entity.

The module of Managing change and conflict explain that there are two types of changes, one the change that has been planned in advance, and another the change that is imposed inside the organization.

There are two kind of forces that influence changes inside the organizations, this forces can be internal or external, the internal forces are the expectations, projects and quotas that the organization establish for a period; and it can be also the results of a previous project or a past expatiation that didn’t result properly. The external forces are those that don’t depend on the organization, like economy, diversity, disasters, technology, globalization, etc.

Organizations that are able to perceive external forces and analyze their internal forces are organizations that can lead in a competitive environment, are able to succeed among time, and are able to take the correct decisions and make the corrective changes in case of a problem.

The changes inside a organization can be: 1) small changes: like an technology upgrade, 2) Strategic changes: When the organization open a new operation plant in a new place, and 3) Radical Changes when the organization change their core business.

The combination of all the forces combined with a good management style, expand possibilities for the organizations to be in constant improvement and optimization of their objectives.

Organizational Change

Questions:

• It’s Ubuntu present at the workplace, it there a link between this philosophy and organizational culture?

Organizations of South Africa have to be aware of the importance of the philosophy and way of thinking of individuals in the society and inside the organization. In the document “Building competitive advantage from Ubuntu from Mzamo P. Mangaliso” describe Ubuntu as a part of the African culture so it is also by the way part of the organizations that have individuals who believe in this philosophy.

Ubuntu philosophy can be defined as humanness they have a spirit of community, harmony and hospitality, it help internal integration and motivated the interaction of persons. This philosophy influence peoples behavior and the way individuals act inside or outside the organization is completely related to it, so Ubuntu philosophy and organizational culture are completely linked, and organizations in Africa must be aware that the Organization Culture must not be contradictory to Abuntu philosophy witch is the one that determines values and way of acting in Africa.

• Please select and explain 3 aspects of organizational life that evidence the presence of Ubuntu at the workplace.

Time:

Ubuntu Philosophy different of western culture they have a different conception of time, for example western culture is used to punctuality and deadlines inside an organization, different from African timing were expectations regarding this same 2 aspects are seen different and are ineffective inside and African organization, the concept of time is relative depending on the way you see it.

The concept of time in Ubuntu Philosophy can be seen in the workplace when Ubuntu use as a time to improve the lives of the community rather than use it to maximized profits.

Decision Making:

Decision making it is also seen in a different context from western culture, some examples are: Decision-making is seen in like a consensus decision, not a democratic decision. Different point of view are accepted and seen like a good angle of the decision “diversity of opinions”. Everyone have to give an opinion before taking the decision.

As it is texted in the lecture “Building competitive advantage from Ubuntu from Mzamo P. Mangaliso”: “..A decision that is supported is considered superior to the "right" decision that is resented or resisted by many…” Page 27.

Relationships with others:

Ubuntu philosophy have an enormous respect to others, it profundize in the good relation that individuals must have interacting whit their similar. For example inside the organization all the organization is seen as a family were workers threat each other like brothers and sisters, and the relations are reciprocal, individuals must give the best for the relations.

2. African Bank Miners Credit – case study:

This case study illustrates the main difficulties faced in a process of merging two companies and the role played by culture.

It is very important that in this section, you try to build relevant links between the 2 readings and your research about change theory.

Please identify and explain 3 strategies used by the acquiring company in order to facilitate the change process through the use of Ubuntu.

This case talks about a horizontal bought from African Bank Miners credit to a controlling stake in the National Union of Mineworker's (NUM's) in order to facilitate new services of credit. This strategy to facilitate services requires a lot of tactics and investment to make a successful merge.

South African region is highly involved with the Ubuntu philosophy, which is a traditional philosophy that promotes values and ways of behaving as individual and in community; this involves also the behavior inside the organizations.

The African Bank Miners in order to have a successful merge applied strategies using the knowledge of Ubuntu Philosophy to facilitate the process, some strategies were:

Ubuntu promotes that the organization is seen as a family were workers threat each other like brothers and sisters, one strategy to avoid resistance to change was to explain the process between the organization and the NUMs, trying to simplified it to all the employees with a story of a badger and a bird, witch explained to all the employees that they have to work together in order to achieve a goal.

The Ubuntu philosophy use the drum as a symbol of communication because drums have been used to symbolize communication and loyalty, so as strategy the organization introduce the drum, and start using it to avoid resistance to change.

The organization as a strategy that follows the tradition of Ubuntu Philosophy introduce the opinions of the individuals inside the organization in order to improve the company success, this is called in Ubuntu philosophy "Our Ubuntu".

References:

Case of African Bank Miners Credit, available at (Accessed October 2010):

http://www.bankseta.org.za/downloads/IIP_Case_African_Miners_Credit.doc

Mangaliso, Mzamo. 2003. Building competitive advantage from Ubuntu. In Thomas, David Clinton, editor, Readings and cases in International Management: Across-cultural perspective.

Buono A, Kerber K. Creating a Sustainable Approach to Change: Building Organizational Change Capacity. SAM Advanced Management Journal (07497075) [serial online]. Spring2010 2010;75(2):4-21. Available from: Business Source Complete, Ipswich, MA. Accessed October 18, 2010.

Images taken from:
- http://www.business-strategy-innovation.com/uploaded_images/Change-Innovation-727079.jpg
- http://foros.eluniversal.com.mx/blogs/imagenes/ubuntu.jpg
- http://kenyonreview.org/blog/wp-content/uploads/2008/12/daylight-savings-time.jpg
- https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1IXGH7P1J8OSRhgtF4v0VZOZbYfEc8FRKsOH-QhKEMP509KUcS3RBXUv0bSLuTyIO_DpQIdVF-C90S6o95jZJNB2uGUrU_cSlixSPlo_2AnhCV0o_02FteBK3OWSHs-MRT9DoF98XGKo2/s400/The-power-of-good-decision-making.jpg
- http://www.google.com.co/imgres?imgurl=http://blogs.sfu.ca/departments/careerservices/wp-content/uploads/networking_professionals.jpg&imgrefurl=http://blogs.sfu.ca/departments/careerservices
- http://www9.georgetown.edu/faculty/irvinem/CCT510/Sources/diamond_mine-al-qaeda-WP.jpg

The rise of MNC's

MNCs as we saw in class video called “The Corporation", directed by Mark Achbar and Jennifer Abbott, this documentary starts showing us how the corporations help the communities by giving individuals jobs and establishing ways of living, they show us that the corporations behave like a person, have the same rights that a persons have, and follow the same rules that a person, but the movie is very clear by remarking that the primary goal of a corporation is make profits and produce more and more money. At this point it is remarked that MNCs have strong power and ask the question: ¿ who control the consequences of the MNCs?, they start asking questions of real situations that corporations have abused, for example: Controlling the unions by firing workers, Pollution problems, Harm to animals, Destruction of the environment, habitat destruction, Production of dangerous products, Etc.

The documentary let us an unanswered question about ¿who control the actions and reactions of MNCs?

MNCs are enormous enterprises that have the power to reach any part of the world and manage by their own way, ones example show in the documentary is how a MNCs are controlling with few competitors essential goods for living, they show cases that need to be concerned by all consumers, and it tried to make us open our ayes and see that if we don’t to something MNCs will be ruling and doing whatever they wants with us and the planet.

In the document: “MNCs and Surrogate Sovereignty By Jhon M. Kline”, the author said “..Despite impressive growth in financial, technological, and other resource capabilities, MNCs do not function effectively as independent, unitary actors that can challenge nation-state sovereignty..”

This document gives us a different perspective of the documentary of Mark Achbar and Jennifer Abbott, explaining us that MNCs assume basic governance functions in places were the national government is absent or place were the national government encourage MNCs to provide social services. It said that MNCs tried to avoid interfering with the national governments.

Questions:

1. Do Corporations pursue today other interest or the "bottom-line" remains as their single priority? What are the factors influencing the corporation’s objectives and goals?

Now days there are all kind of multinational corporations, everyone with different specs, proposes and environments. Like individuals, corporations decide how they should act and they decide if they do it the right way or the wrong way.

It is also known that governments now days with the globalization are paying more attention to alliances between companies and try to regulate the absolute control of the market, they also establish ways of acting to protect citizens and the environment with rules and stimulating good behaviors with fiscal benefits.

After washing the video “The Corporation" and reading the article “MNCs and Surrogate Sovereignty”, we see that now days there are “Green” companies and there are traditional big organizations that seek having more and more control like the ones mentioned in the documentary, that try to be more consciences about with Union busting, layoffs, factory fires, sweetshops, harm to human health, dangerous products, emission of pollution, toxic waste, harm to animals, etc. But in the end all the organizations what they really seek is increasing their profits like Mark Achbar and Jennifer Abbott say in their video.

 2. The film focuses on the negative consequences that the Corporation’s behavior cause to the environment, to human health and animal life. Discuss from a critical perspective, the possible benefits and arising from the actions of MNCs for these 3 groups.

MNCs, as it is shown in the video have committed mistakes about abuse of exhaustible recourses, animal testing, and production of toxic substances, those arguments are true but not everything shown in the video is the reality, corporations have also contributed to the humanity welfare.

About human welfare, we can start talking about the amount of jobs that any MNCs creates and sustains, this generates stability for a large amount of people. There are also in the majority of the MNCs departments of research and development (R&D) that have make evolved the quality of life of humans.

Privatization of public services have made that this service acquire higher levels of service, introduction of new techniques, and better services that benefit the community.

Human despites have made that organizations can sustain in the time and avoid bankruptcy in times of crisis, so all the employees wont lose their job, the economy can be sustainable and when crisis is over there can be jobs for more individuals.

The research for new ideas and private investigation motivated by the generation of profit has discovered beneficial products for the human, the animals and the environment.

3. Do you think a corporation should be considered a "person"? discuss the implications and limitations of granting such legal existence to corporations.

I do not think corporations should be consider as a person, like is said in the documentary “The Corporation". Corporation should be consider like a enterprise with legal rights for enterprises not seen like a person with human rights, but i think every corporation must have the same duties that humans have but not the same rights.

This corporation’s rights can be the same as humans because corporations don’t faces the same consequences as a person if it commits a crime; corporations have more benefits than a regular person, corporations have much more power than a regular person.

Corporations should have rights but never the same rights of humans so it must not be considered like a person.

References:

MNCs and Surrogate Sovereignty

JOHNM.KLINE Director of the Master of Science in Foreign Service Pr; ram Georgetown University

Class Movie: “The Corporation” by Mark Achbar and Jennifer Abbott.

Available at: http://www.youtube.com/view_play_list?p=FA50FBC214A6CE87

Images taken from: 

- https://eee.uci.edu/programs/humcore/Student/archives/Year2006-2007/Spring2007/MoviePage/images/TheCorporation.jpg

- http://www.coachingcollection.co.uk/coachingcollection/images/world-in-hand.jpg
- http://phones.webhostingoverview.com/wp-content/uploads/2007/11/big_green.jpg
- http://www.awc.co.uk/images/new-ideas.png
- http://www.google.com.co/imgres?imgurl=http://www.celdf.org/Portals/0/Images/abandon%2520rights%2520at%2520corporate%2520gate%2520cartoon.bmp&imgrefurl

Merging OC

Business environment is characterized for the strategies, tactics and tools that organizations use when want to gain more market, participation, be more powerful than the competitors, gain more knowledge and create learning opportunities. One of those strategies is making alliances and or buying horizontally the chain of production.

Organizations must be aware that this integrations must be successful in order to achieve the propose of the merging. It is common that integrations that are not been managed properly create difficulties and put in danger the stability of the organization.

The document Challenges and Opportunities in Mergers and Acquisitions: Three International Case Studies – Deutsche Bank-Bankers Trust; British Petroleum-Amoco; Ford-Volvo", explain that two companies can integrate effectively if they are aware of this two important aspects: 1) The need for individuals to have a strategic independence between firms, and 2) The need for organizational independence.

When this two aspects are take in account the merged organization must created of a new value between the companies that promote in whole organization without remarking cultural differences, that promote individuals to joint efforts to achieve goals.

The author explain with 3 cases of effective integrations between organizations, that they all concentrated their effort in avoiding the uncertainty of their employees about the merging, they control it by creating committees that guide the employees in the new process. The author also explain that in the merging process the organization must identify the aspects in common and the aspects that differentiate firms, and remark the commonalities and avoid the differences.

Questions: 

Based on the required reading for this module, list and explain - using evidence from the cases presented in the reading - the main challenges and opportunities arising in processes of mergers and acquisitions from an organizational culture perspective.

Include at least 3 challenges and 3 opportunities.

• Integrating Deutsche Bank (DB) and Bankers Trust (BT) 

This case is about the challenge of the integration between to important banks to become one global, powerful organization. With this integration what was wanted was:

1) Gain a globally orientated business area on a transatlantic platform that BT already have.

2) Increase innovation, financial strength and client focus on both sides of the Atlantic

3) Ability to satisfy its customers' wishes even more successfully on a global level.

4) Lay foundations for a long-term growth of the company value.

This integration creates enormous opportunities but also have challenges in the middle, in this case there was an internal conflict about what will be the name of the new bank, conflict that will produce a lack of identity if the name doesn’t represent anything about their old bank name. The solution to this challenge was named the new bank: The Deutsche Bank - Alex Brown Investment Bank, name that not only reinforced the brand but also identity remained. Another challenge was the change of managerial style, it was shown in the case that DB was a high bureaucracy company, with a hierarchical style, and a slower decision making process than BT.

• Integrating British Petroleum (BP) and Amoco into a single organization. 

This case explains how can two organizations with two different cultures can merge into one new corporate culture. The main challenge that this case present is how they create a new organization culture that didn’t affect any of both cultures and promote work cooperation, to achieve this the company made meetings with all the managers and explained the philosophy of BP, they also motivated employees to socialize among themselves.

• Volvo and Ford.

This case is about the integration of two big automobile companies which was very beneficial for both sides, the opportunities of this integration are:

1) Volvo need financial power to stay competitive in the market, they were losing capacity of research and development to create competitive cars.

2) Combine technologies.

3) Share knowledge.

4) Introduce new products in new markets.

This case have the traditional challenges mentioned before but is characterized by a major challenge that is the merging of two cultures that have been doing things by different ways, one Swedish culture used to be team work oriented and very decentralized an another very complex and hierarchical.

References:

Alzira Salama, Wayne Holland, Gerald Vinten, (2003) "Challenges and Opportunities in Mergers and Acquisitions: Three International Case Studies – Deutsche Bank-Bankers Trust; British Petroleum-Amoco; Ford-Volvo", Journal of European Industrial Training, Vol. 27 Iss: 6, pp.313 – 321.

Tapking J, Yang J. Horizontal and Vertical Integration in Securities Trading and Settlement. Journal of Money, Credit & Banking [serial online]. October 2006;38(7):1765-1795. Available from: Business Source Complete, Ipswich, MA. Accessed October 17, 2010.

Than L, Lao T. EVIDENCE ON EFFORTS TO ALIGN ORGANIZATIONAL STRUCTURES AND BUSINESS STRATEGIES. Global Journal of Business Research (GJBR) [serial online]. January 2010;4(1):71-84. Available from: Business Source Complete, Ipswich, MA. Accessed October 17, 2010.


Images taken from
- http://browse.deviantart.com/?qh=&section=&q=corporation#/dovyuu
- http://www.bypd.in/DeutscheBank/Images/deutsche-bank-normal.jpg
- http://yevgyeni.com/UNCTV/amoco-bp.jpg
- http://www.blogcdn.com/www.autoblog.com/media/2007/07/ford_denies_volvo_sale.jpg