1. Introduction:
1.1 Parent Country:
India, with a population of 1.2billion, the presence of the IT organizations is wide spread in various ventures and is quite successful in implementing them in both domestic and international fields. The globalization of business can be managed with various approaches which would enhance the management of employees.
1.2 Host country:
USA, with a population of 313.9 million has a strong software and hardware service industry which is globally seen. The total revenue gained exceeded $606 billion as per the data, 2011. The workforce has been gradually growing in the field of IT reaching nearly 2 million.
1.3 Parent organization:
Tata Consultancy Services established in 1968 and headquartered in India, is a global IT service provider and stands amongst the top 10 organizations of the world. With an experience of 40 years and a strong presence in 55 countries they have grown with service and success by providing a world class experience to its clients from time to time (Tata Consultancy Services, 2013).
1.4 Host organization:
Xerox, headquartered in Norwalk with a presence in 160 countries and holding 140,000 employees is one of the leading business processes and document management enterprise (Xerox – Company Facts, 2013).
1.5 Partnership:
TCS and Xerox have built a strategic partnership forming a contract to gain value and create significant product, by implementing embedded system technology from TCS. They bring together technology and teams across the globe with collective expertise, the collaboration seems to be innovative and turning to create more powerful business solutions.
2. Scope:
In the globalization era, it is essential for organizations to manage employees when staffin...
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...rrival and long terms goals.
• As expatriates approach an overseas project with career appraisals in mind performance and rewards that they perceive should be cleared before hand to make them work effectively.
10. Conclusion:
In this report the focus was on the international human resource management on expatriates in global context. Different functions like recruiting, training, appraisal and evaluation help expatriate defining success and measuring it. Further outlined are the different aspects of failure and recommendations which could help retain expatriates within an organization by focusing on training mode, different styles of training provided for the effectiveness of expatriate. A set of approached with new innovative techniques for staffing, understanding and recognizing the relationship would develop the overall efficiency of expatriates at workplace.
For most its history, Wyeth had been a holding company that sold a variety of products through as many as a hundred companies organized into 10 subsidiaries. Wyeth grew primarily through acquisitions of other companies, in which the original management was usually retained. In the early ‘90s, Wyeth embarked on a strategy of focusing the company on healthcare and divesting all non-healthcare divisions. The company also started to consolidate operations including manufacturing and staff functions; however, Wyeth did not have the culture or business processes of a global organization. Wyeth did not have a culture of sharing information experiences among affiliates or comparing performances. The prevailing local thinking and lack of integration was causing operational challenges for managing global inventories. Additionally, the R&D group was producing internally developed products that could not be marketed or manufactured on a local basis. In the late ‘90s after successfully divesting the non-pharmaceutical businesses, Wyeth was faced with the challenged of organizing the firm into a global integrated entity. A major self study and analysis were conducted and the final recommendations were presented to top management. Although there was widespread support, the funding was not necessarily available. In the remainder of 1998 and 1999, Wyeth focused on planning and communicating the IT globalization plan that emphasized the regional support centers (RSCs).In parallel with IT globalization initiative, Wyeth was also considering, planning, and implementing ERP and SAP implementations. Additionally, a global data warehouse was introduced to normalize all the data and rationalize the products. In early 2000, the IT globalization ...
Wood, E (2010, December). Enhancing Performance by Reducing Uncertainty in Expatriate Assignments. Retrieved from http://www.regent.edu/acad/global/publications/rgbr/vol4iss1/RGBRVol4Iss1Art3.pdf
Armstrong (2007) notes that traditionally, the conversation of global reward strategy has been centred on a small group of elite expatriates moved from the company’s headquarters and rewarded in concealment from the local staff (p. 24). The strategic approach today is too reward all performers regardless of whether they are expatriates or locals. The HIS, which may hire members from their home country should design a reward and recognition system that is meant for all performers to prevent a situation where employees feel that rewards are for a certain level or
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the following:
Global outsourcing first became popular in the apparel and textile manufacturing industries during the late 1960’s and 1970’s. Then it continued with automotive, computers, electronics, and other forms of assembly work during the 1980’s. Most recently, during the 1990’s, now and also in the future the outsourcing is focused on ‘knowledge’ work such as work in software design, technical support, telemarketing, call centers, and back office work. By the end of 2009 Information Technology outsourcing (ITO) revenues were over US $250 Billion while for Business Process Outsourcing (BPO) were more than US$ 140 billion. By 2006, over 200 firms from the Forbes 2000 companies and almost half of the Top Global 250 had offshored IT and business process activities. By 2008 India was managing 65% of the ITO and 43% of the BPO market. In general, India, China, Latin America, Philippines and Mexico have been the top locations for offshoring. The United States is a major player in the offshoring of IT and business process, however, Europe is also catching up. The growth of global sourcing sparked due to the technological advances in the telecommunications industry and the internet w...
Finding the appropriate candidate, with the right attitude can be half the battle in recruiting, and placing expatriates versus host-country nationals. By focusing on the three primary attitudes of global management; polycentric, ethnocentric, and geocentric, the success of failure of any global endeavor could swing the pendulum toward either success or failure, as “expatriate failure can be costly if he or she leaves the company” (Schaffer, Harrison, Gregersen, Black & Ferzandi, 2006, p. 110).
In the last century, globalization has become a very tangible part of how business is conducted. Technological advancement allows international trade and commerce to happen rapidly and easily while the advancement in how goods are transported and how people communicate have had a drastic effect on the globalization of business. Management practices and culture also has a bearing on how international enterprise has is conducted. Managers have to adapt to different management practices, adjust to a new culture, and sometimes face ethical issues in a foreign field. Management is an important role in finance and enterprise that has far reaching consequences on the globalization of business.
With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.
To meet and respond to its customers needs, IBM creates, develops and manufactures many of the worlds most advanced technologies, ranging from computer systems and software to networking systems, storage devices and microelectronics. Indeed, IBM has various product lines and services a few of which are: the Personal Computer that was first created in 1981, AS/400 business system, RS/6000 family of workstations and server systems, S/390 enterprise server, groundbreaking ThinkPad notebook computer; the award-winning IBM Netfinity and finally, PC Servers. It is an important supplier of hard disks, random access memories, and liquid crystal monitors.
International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
The market for IT industry was huge and expanding at a fast pace. However the market leaders were Accenture and IBM which had a negligent market share and rest was captured by small enterprises. Indian companies also ventured in the industry and due to their competition, IT multinational giants had to increase their base in India. Due to high opportunities, attrition rate was also high in this industry. As a result Indian companies like Wipro, Infosys increased their base level salaries. During this phase, Indian economy was transforming towards an era of information and knowledge. This can be seen from the fact that contribution of services towards the economy’s GDP was higher than 18% in 2001 as against in 1980. No other industry had done better standing against global competition. The annual exports had always been over 50% over a decade. U.S.A. share represents highest with 61% and about a third of Fortune 500 companies outsource their software work to India. To foster development, Indian government has taken a number of steps like liberalization of policies and providing necessary capital and infrastructure to foster growth. Thus Indian environment has been conducive for growth. (Ref: Indian Embassy.org) Competitor analysis- The market for IT industry was fairly competitive with IBM and Accenture as global leaders and rest of the market was pretty diffused. IBM and Accenture had strong brand and a global presence with a large customer base. They also offered panoply of services viz. technology implementation, business consulting, offshore services, customer relationship management etc. Both offered breadth and depth of services. IT market in India offered technical and business consulting with Tata Consultancy Services which was the market leader in IT exports and Wipro Technologies and Infosys being other major market players. TCS offered consultancy services, IT services, asset based solution etc. Wipro was third largest IT provider with service offerings in IT consulting, software solutions, BPO etc. Both had a strong global presence. Intensity of Rivalry: Rivalry amongst competitors was pretty intense as can be seen the Indian competition caused IBM to increase their presence in India. However leaders like IBM and Accenture had a wide range of service offerings so competition was only amongst few sectors. Rivalry was to hire the top talent as human capital is the most important thing in the IT sector. This is the reason that attrition rate lead to a rise in pay packages.
...e located and the human resource management to effectively manage the global workforce diversity. Furthermore, management practices across nations should be more focused in terms of enhancing expatriates’ experience with cross-cultural training. It is also highlighted that executives of international firms must efficiently devise the best strategies and plans to increase the business positive performance and for controlling resources of their foreign subsidiaries. As a consequence, global managers play a very important role in the development and success of multinational corporations in the current competitive international market since there are numerous issues that they have to deal with in the operating process. If the enterprises could overcome the management challenges, they would gain great opportunities in the global economy and achieve favorable outcomes.
High turnover rate of expatriate: expatriate managers are frustrated with the performance and practices of local employees. And they do not have enough international experience and cross-cultural communication and sensitivity training.
The XYZ Corporation was established in 2004 and their main office is located in Vancouver, BC. The company’s main objective is to create new innovating technology for media devices, computers, and digital music players. They deal with the design, manufacturing and marketing of the products. XYZ Corporation has been providing Canadians with groundbreaking technology throughout the years and continues to create new technology to provide others with top-level technology. Although, recently their success rate has appeared to drop rapidly due to a number of factors that will be explored throughout this case study. Their main objective is to target the problems so that they can work towards having the issues resolved as quickly as possible. If they do not take any course of action, the state of the company may be in extreme danger. This case study is designed to explore the areas of the company and discover the problems blocking the XYZ Corporation from success.
In the present day organisations are expanding their operations to different countries of the world. They therefore need people to work there “expatriates”. Once the international assignment is completed, the expatriates have got to go back home, the process of repatriation begins. Even though most expatriates and managers presuppose that the repatriation process will be easy seeing as the employee is just returning home, research has substantiated that this is a tricky process. There is indication that it could be more difficult to adjust to the home environment as opposed to adjusting to life in a foreign nation. Therefore, repatriation process ought to be considered keenly (Baruch et al 2002).