Example. c In small groups, outline a plan to improve Zephyr's situation
| There is a high staff turnover which is bad for morale and may be due to a lack of promotion prospects. |
c In small groups, outline a plan to improve Zephyr's situation.
2 Choose one member from each group to play the role of Mr Hurd. He or she has a maximum of five minutes to make a presentation to the Zephyr employees. He or she should:
• present the plan he or she hopes to implement, justifying it where necessary
• be prepared to answer any questions the employees may have.
3 Imagine you are Production Manager for Nissan. Decide which of the presentations was the most convincing. Justify your decision.
Section 2
Working overseas
| 3.2.A Warm-up | Overseas assignments Before you read the passage in exercise 3.2.B, discuss these questions in groups: 1 Have you ever lived or worked overseas? Was it a short-term or long-term stay? Did you experience any difficulties adjusting to the different culture? 2 Do you have any plans for working abroad? What advantages do you see in working abroad? What might be the particular difficulties you encounter? Do you feel well enough prepared for an overseas assignment? 3 How can companies help their personnel prepare for an overseas assignment? 4 From what you know about Americans, would you say they find it easier or more difficult than people from your country to adjust to a foreign culture? Why are some expatriates more at ease than others? |
Working overseas
| 3.2.B Reading | Training global managers Read the article below and find the answers to the questions which follow. | ||
| One of the reasons why the Japanese have been so successful in penetrating world markets is that they have understood and responded to the challenges of doing business in alien countries and cultures. Japanese expatriate personnel ire far better equipped than their American counterparts for living and working abroad. In a recent survey, three-quarters of the 80 US corporations responding reported that between 10% and 40% of their personnel assigned overseas had to be recalled or dismissed due to poor performance. Only 14% of the 35 Japanese companies responding reported a failure rate of over 10% and in no case did it reach 20%. Maintaining a US family overseas costs an average of $200,000 per year. Recalling key personnel is not only expensive but also highly disruptive, often leading to confusion and lost opportunities. Furthermore, an expatriate who is recalled will, in most cases, leave the company even though his or her performance may have been good prior to the overseas assignment. Replacing him or her means that the company has permanently lost a valuable human asset. Even those US expatriates who complete their assignments may not be working to full capacity and although technically they have not failed, they may be costing their company a great deal in foregone profits. The reason why Japanese and American expatriates perform so differently may be explained by the better preparation and support which Japanese managers and technicians receive. In Japanese companies, a thorough selection is made at least one year before the assignment is to begin, so that anybody at risk is rejected. The selection procedure is followed by a training programme where assignees learn the culture, customs, language and ways of doing business in the host country. They learn that they will have to do without many home-country comforts, and to accept, respect and even enjoy inconvenient customs and procedures. | Upon arrival in the country, the Japanese expatriate is assigned a mentor. This is usually a local person who will help the newcomer to settle in and get through the first year or so. During their assignments Japanese managers or technicians are in constant contact with head office. They are kept up-to-date on any changes that take place during their absence and this reduces any worries about returning home. They also know that their foreign assignments are an integral step in their career plans. Two-thirds of American companies have no formal training programmes to prepare personnel for overseas work. The other third limit their training to an informational briefing just before departure, but with no simulation activities or question-and-answer sessions with host nationals. Furthermore, no attempt is made to involve the family in preparing themselves for their new environment. Many expatriate personnel are recalled because their spouse or children cannot adapt, and this creates immense pressure on the whole family. One of the reasons why American companies are so reluctant to set up effective training-and support programmes is that a trend has developed to replace expatriate personnel by host-country nationals. However, the increasing globalisation of business has led to a net increase in the number of Americans working overseas, in spite of the trend to replace them. This increase is likely to continue if American headquarters want to maintain and strengthen links with their overseas businesses. Expatriate personnel may be divided into three categories, each with its own set of needs. Firstly, there are the short-stay technicians engaged in technical assistance or the transfer of technology. Because they rarely stay for more than a few months abroad their needs are mainly limited to techniques for survival. For example, they will need to know something of the uniqueness of the host-country culture and learn to engage in activities which make life in an alien land tolerable. | ||
Part I Human Resources Unit 3 Motivating personnel
| Secondly, there are the long-term expatriates whose needs go beyond pure survival. Learning to be effective is a major challenge, and this means knowing what to expect, how to read cues, and how to adjust one's management style to the foreign culture. Furthermore, learning to enjoy the foreign culture is essential in order to avoid culture fatigue. The third type of expatriate is the foreign national coming to America, and they too have their own needs which must be met. | Any training programme must take into account the different needs of these three groups. It should also be specific to the country of assignment or, in the case of foreign nationals coming to America, the country of origin. Cultural differences encountered in France are very different from those in Russia, Nigeria or Saudi Arabia, and it is the instructor's job to identify these differences, explain why they might be problematic and teach the skills necessary to cope with them and, ultimately, to appreciate them. | ||
| 1How do US and Japanese expatriate personnel cope with overseas assignments? 2What are the costs of the high rate of failure among US expatriates? 3What do the Japanese do to minimise their failure rate? 4What training activities are available for American managers and technicians working overseas? 5What are the three kinds of expatriates and what are their needs? | |||
| 3.2.C Discussion | Identifying training needs
I In small groups choose a host country and an expatriate group. Make a list of all the cultural differences which an expatriate and his or her family may encounter in that country and which may be problematic.
Example
Here are some further ideas to help you get going: | ||
| Greetings: | How do people greet each other? Do they embrace, shake hands, avoid physical contact? Do they use first names or surnames? Is there a high regard for rank or social position? How is this manifested? Is there a rigid code for greetings or are many things permissible? |
Working overseas
| Visiting: | If you are invited to somebody's house, are you expected to bring a gift? If so, what? Should you dress formally? Should you offer to clear the table/wash up? Should you return the hospitality/send a note of thanks? |
| Eating: | Is it rude to decline certain food or drink? Should women accept alcohol? May you eat with your fingers? May you ask for 'seconds'? Is it acceptable to eat with your elbows resting on the table? Should you leave directly after the meal? |
| Tipping: | Should you tip taxi drivers, porters, doormen, barbers, government employees, bus drivers, petrol (gas) station attendants, others? How much? |
| Conversing: | Are there any subjects which are taboo? What is considered more important, diplomacy or frankness? How important is it to have a sense of humour? How acceptable is it to tell 'rude' jokes or jokes about racial minorities? Is it considered impolite to discuss somebody's age, weight or personal habits? |
| Gestures and non-verbal communication: | How close should you stand when conversing? How acceptable is it to touch? How important is eye contact? Are there any gestures you should avoid using? |
| Dress: | Is it OK to wear shorts to work, sleeveless dresses in the street, hats in-doors, nothing on the beach? |
| Dates: | Who asks for the date, the man or the woman? Who pays? Is kissing in public acceptable? How significant is a date for a future relationship? |
| 2 Now carry out the following role play. Imagine you are taking part in a weekend training session to prepare personnel for a forthcoming overseas assignment. Each member of the group in turn will play the role of instructor while the other members of the group play the role of assignees. The instructor must: • choose one of the cultural differences which the group has listed • explain why it may be problematic and how best to deal with it • answer any questions the assignees may have. | |
| 3.2.D Discussion | A business report You have recently been appointed as Personnel and Training Manager of an American multinational corporation. Looking through the files you notice that a large number of your expatriate personnel were recalled from their overseas assignment earlier than planned, and of those who completed their assignment many felt that they would have done a better job if they had been better prepared. Write a report to your CEO. The objectives of your report are as follows: • to describe the problem • to explain the gravity of the problem • to outline a plan for dealing with it • to convince your CEO that your plan should be adopted. The report should not exceed two pages and, if possible should be typewritten, double spaced, with 2.5cm margins. |
Part I Human Resources Unit 3 Motivating personnel
In writing your report, you should respect the following guidelines:
1Give your report a title. The title should be concise (a maximum of seven words), easy to understand, attractive (include an active verb if possible), and should convey to the reader something about the nature and conclusions of your report. For example, which of the following titles do you think is most effective?
2In the first paragraph, state the reason for your report and the nature of the specific problem to be solved. For example:
3Provide the relevant information in convenient form. Make full use of headings and itemised lists in order to call attention to important points and allow the reader to grasp related points easily. For example:
4Be accurate, specific, dependable, unbiased, well-organised, unambiguous, clear, concise and interesting. 5In the last paragraph, state the answers to the problems outlined in the first paragraph.
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| 3.2.E Analysis | Where should you work? Table 3 refers to the 1991 pay of four different ranks of executives in 20 different countries. They range upwards from junior and middle management in a sizeable division of a big group, to the head of a function such as marketing and finally to the head of the division as a whole. In each case, the table gives two sets of figures. The first is typical gross pay consisting of salaries plus bonuses which are fixed as opposed to those which vary with profits and so on. The second figure translates the gross pay into buying power. Buying power is calculated by turning the gross sum into net pay. This is done by deducting tax and similar charges standard for someone of the country who is married with two dependent children, and adding back the normal family allowances. The net pay is then turned into buying power by |
Working overseas
| adjusting for price variances shown by surveys of executives' living costs. The other currencies have been converted to sterling at the rates of 30 September 1991. The different buying power experienced by the different ranks of executives may be seen as a gauge of the incentive in each country to get to the top. |
Table 3:
Average rates of pay worldwide
| Junior manager | Middle manager | Head of function | Head of division | |||||
| Country | Gross pay £ | Buying power £ | Gross pay £ | Buying power £ | Gross pay £ | Buying power £ | Gross pay £ | Buying power £ |
| Hong Kong United States Switzerland Germany (West) Canada | 18,682 25,779 35,385 28,497 22,823 | 18,267 23,048 22,805 18,800 18,806 | 29,480 35,326 46,885 39,091 31,255 | 27,536 29,672 28,722 25,774 24,074 | 42,635 48,888 65,219 55,463 45,095 | 39,824 39,165 37,420 35,594 32,186 | 63,610 68,978 90,079 82,339 60,014 | 59,415 52,736 48,735 49,176 40,570 |
| France Spain Italy United Kingdom Belgium | 22,084 21,938 23,216 18,758 24,933 | 16,931 15,750 14,898 15,015 16,141 | 30,829 31,186 32,681 25,017 34,983 | 22,773 21,466 20,115 19,603 20,139 | 44,037 44,577 47,026 35,027 49,900 | 30,579 28,668 27,275 26,163 25,532 | 61,846 64,659 67,708 48,280 71,216 | 41,157 37,483 37,510 34,115 32,624 |
| Netherlands Australia South Africa Ireland New Zealand | 21,775 18,545 12,335 18,993 13,524 | 15,992 15,118 12,966 13,275 10,827 | 30,274 25,455 16,366 25,545 17,988 | 20,302 18,928 16,238 16,323 14,078 | 42,875 33,383 22,804 34,182 24,059 | 25,553 22,746 21,336 20,235 18,498 | 57,775 45,980 31,511 45,315 32,312 | 31,761 29,608 28,229 25,229 24,509 |
| Finland Denmark Greece Norway Sweden | 22,970 25,289 11,657 18,954 20,151 | 12,156 12,149 9,678 11,669 10,544 | 30,202 32,143 16,272 25,122 27,560 | 14,608 13,888 12,794 14,055 13,294 | 40,480 43,302 23,906 33,627 37,566 | 18,041 16,538 18,144 16,987 17,009 | 53,975 64,799 32,294 43,496 49,695 | 21,998 21,641 23,546 20,390 21,511 |
Adapted from The Financial Times, 22 November 1991
In small groups, discuss the information which emerges from this table. Which countries do you think use money as an incentive to get to the top?
Part I Human Resources Unit 3 Motivating personnel
| COMPANY FOCUS People in BP Read the following extracts from BP's 1991 Annual Report and answer the questions which follow. |
WORLDWIDE
During 1991, we have continued to make changing our culture a priority. BP's employees all over the world are taking part in a process which aims to" remove barriers, improve performance and devolve authority. We believe the changes will strengthen our relationship with all the stakeholders in BP: our shareholders, our employees, our customers, our suppliers and the communities in which we operate.
A key element in the change process is the building up of effective communications with our employees. In Europe, we have been successful in integrating teams drawn from up to 14 nationalities. We have also worked effectively across national boundaries in S.E. Asia, where we have established an Asia Pacific regional office in Singapore.
| EMPLOYEE INVOLVEMENT A continuing programme of opinion research among our employees has shown they are keen to become more involved in BP's affairs and to contribute views through two-way communication. Their other concerns are to find ways to enhance job satisfaction and to improve career development prospects in BP's new, flatter organisation. To respond to these aspirations, we are introducing Personal Development Plans to all parts of BP. EQUAL OPPORTUNITY It has been BP's policy that all its employees should have equal opportunities for career advancement. In addition to the programmes for our own employees, our work with education gives considerable support for women and those from disadvantaged groups to prepare themselves for careers, particularly in science and engineering. BP Exploration has launched worldwide its Women's Initiative, which promotes career development by making the working environment more suitable for women and helps them achieve their full potential. BP Oil is one of the first companies to have joined Opportunity 2000, a campaign to improve the ratio of women to men in the UK workforce. The Springboard Women's Development Programme, started by BP Oil and now used in the group's London offices, is encouraging career development for women in non-managerial grades. Where practicable, we try to meet the growing demand from employees to provide day-care facilities for their children. In the |
Company focus
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| UK, nurseries were opened at several of our major offices outside London and we plan to extend these facilities to other sites in 1992. In the USA, as part of our 'family friendly' policies (which also support flexitime working), we have taken over the operation of a child-care centre in Alaska. In Cleveland, Ohio, we have arranged to provide replacement care for employees' children when the regular child minders are not available. In South Africa, we remain fully committed to advancing the careers of our black staff. In the UK, we are the largest sponsor of ethnic minority students by providing work experience through the Windsor Fellowship. SHARE SCHEMES In the UK, eligible employees were again teed, in May to participate in the BP share schemes. At the end of 1991, 26,100 current and ex-employees held shares under the schemes. The number of participants rose by 3,000 on the previous year. We launched similar schemes in Australia, New Zealand, Norway, France, Spain and Hong Kong and are encouraged by the high level of response from our employees. | EMPLOYEE INVOLVEMENT
A Long Term Performance Plan was established at the beginning of the year for our senior international executive, including the managing directors, with the aim of linking a significant part of their future remuneration to the creation of long-term value for shareholders.
The annual remuneration of these executives is set in US dollars. However, as they may elect to be paid in the currency of the countries where they work, the remuneration of executives reported in sterling will reflect exchange rate variations from year to year.
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Part I Human Resources Unit 3 Motivating personnel
