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1、1. IntroductionThe 21century is theage of economic globalisation thattransnational businesswill become acommonmode of operation ofenterprises. Being globalisation, management has been put forward higher requirements, especially in human resource management, largely determines the ability of companie
2、s to achieve strategic objectives. In addition, multinational enterprises are bound to face and deal with cross-culture issues. Therefore, how to deal with cultural conflict is the important factor for successful management and operation of multinational corporations. In addition, managing expatriat
3、es is another important step management of multinational corporations. The cultural differences have been treated as a corporate resource rather than the conflict between employees or a reason for managing frustration. In fact, the successful management of expatriates has become the key to the victo
4、ry of transnational business. The following report will be through the analysis of VANCOUVER COMMUNICATIONS(VC) plans to expand into Turkey and assessed the proposal from Mike Ansell who is the CEO of VC to provide some relevant recommendations to Helen Reeves who will has chosen to head up the Turk
5、ish operation. And by Tony Rossinis survey, estimate problems of VC expatriate and propose improvements.2. Evaluate Mikes Proposal and Suggestions for HelenVC is a company which has more than 40 years of operating experience of produces and sells a range of office communications equipment based in V
6、ancouver, Canada. ItsCEO, Mike Ansell,has been the reign for 15 years. He led theVCs performanceall the way up, andopenedits first overseas production facility in England11 years ago. Subsidiarycontinues to use theVCsmanagement system,such asadopting a participatory style ofmanagement, Conventional
7、job descriptions, etc., andoperatessuccessfully. In order to reducecosts andexpandmarketsin Eastern Europeand the Middle East, Mike and otherseniormanagersdecided to establisha production and distribution facility on the outskirts of Ankara in Turkey. Helen Reeves who has 4 years of seniority that D
8、eputy Head of Marketing for VC in Vancouver was assigned. Mike suggested that she should follow the companys management system, including utilize the same organisational, people management systems and carries out those successfully drives by VC in both Canada and England.2.1 Compare the Cultural Dim
9、ensions with Canada, England and TurkeyGeert Hofsted, organization Culture scholar, researched Cultural Dimensions since 1967. In 2001, the cultural dimension index of 74 countries is finished and listed. They are Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoida
10、nce Index (UAI), Long-Term Orientation (LTO). The table and graph below will show the index of Canada, England and Turkey, and clearly display the difference of these three places.CountryPDIIDVMASUAILTOCanada3980524823England3589663525Turkey66374585-(Table: HOFSTEDE SCORES. Note: resource from geert
11、- )(Graph note: From left to right are Canada, England and Turkey)Power Distance Index (PDI) focuses on equality of people in different countries. The more PDI, the more people accept the authoritarian and paternalistic; the less PDI, people tend to democracy. PDI is an overall indicator. In a crowd
12、 of people with high PDI may have a low PDI, but people have their own regulatory system, so that these disparate punishment, which regulates the behavioral characteristics of the general population. There is no doubt that Canada and England with low PDI, which no longer to emphasize the rights aris
13、ing from the level of wealth or differences, but more emphasis on the status of any between people, equality of opportunity. By contrast, Turkey is in the middle position. This shows that Turks are more respected power and wealth between the levels of a high degree of recognition.Individualism (IDV)
14、 focuses on community recognition of individual achievement and interpersonal relationship. Higher IDV means individuality and individual rights are paramount importance in society. Low IDV (collectivist) says there are more close contacts between individuals. IDV of Canada and England are high that
15、 tends to create a loose structure of organizational relationships. In comparison, Turkey is low. This means Turkey stressed that the concept of family members and emotional dependency and other members of the organizations responsibility.Masculinity (MAS) concerns the role for women and men in succ
16、ess, control, and power level of acceptance of social role models. The greater MAS, the more the crowds of men trace competitiveness, assertiveness, ambition, accumulation of wealth and material possessions. The lower MAS means no significant gender discrimination.In these cultures, females are in e
17、very respect equal rights with men. According to the table above, there is not a significant difference among the three countries. But the distribution from 74 countries, the England is in a higher position, Canada is in the middle, and Turkey in the lower-middle position. This means Turkey is more
18、acceptable than Canada and England the existence of superwomen.The greater Uncertainty Avoidance Index (UAI), the more people seek certainty, such as explicit rules, such as laws, religion and natural science, formally structured activities; the smaller UAI, the more the pursuit of uncertainty, such
19、 as the implicit or flexible rules or guidelines and informal activities. By comparison, Turkey was considerably higher than in Canada and the United Kingdom. This shows that the Turks on the laws, regulations based on the needs of the emotional, which is not conducive to radical innovation have som
20、e ideas, but people can develop fine qualities of punctuality, so good for someone elses ideas into practice that in the present life force.Long-Term Orientation (LTO) concerns about the willingness of an organization long-term devotion to traditional, forward thinking and values.LTO intention is fo
21、r cultural differences between Eastern and Western. Only 23 countries were compared. Therefore, Turkey was not valued. However, since the prehistoric era, Turkey as a melting pot, different races and cultures as metals, so that speculated the LTO is low in Turkey. 2.2 Benefits and issues of Mikes pr
22、oposalMike suggested using the same management system which was successful operated in Canada and England. Advantage of mikes proposal is a continuation of VCs culture. Indeed, participative style of management which is a good system to give employees a clear understanding of company processes and i
23、mproves employee motivation. Also provides a work environment that employees can be more flexible and creative, so that they have a sense of ownership and loyalty. In addition, this system is also the main advocate for the individual. Appraisal system is based on individual performance. In fact, in
24、the United Kingdom subsidiary has also been well confirmed. This is as much of the cultural dimension of Canada and the United Kingdom little difference (the majority of native English speakers is the same situation in the country). PDI and the IDV can be seen from these two countries for the recogn
25、ition of personal achievement and interpersonal relationships and high stresses between the office and the status of equality of opportunity. Nevertheless, Turkeys PDI and IDV index has the opposite in Canada and the United Kingdom. People in this region close ties of collectivist. In this situation
26、, such a management system is not appropriate for Turkish culture.Also, by comparing the three areas of UAI found that Canada and the UK to adapt to uncertainty, and Turkey is dependent on the rules and regulations. Therefore, Mike advocated that Conventional job descriptions is not suitable and pro
27、blems may occur, for example, when recruiting and selecting new blood for VC in Turkey, unclear job descriptions will lead to the recruitment of staff is not qualified or the loss of talent, thus the cost of unnecessary waste. Although the ever-changing sector employees can make a better understandi
28、ng of the companys operations, it easily leads to the loss of the cost and personnel.In addition, Turkish society is not exist significant gender discrimination. So Helen is the right choice to appoint to Turkey. However, Helen is the airborne troops who deployed directly from the Corporation, the l
29、eader of a subsidiary. As an expatriate employee, Helen must face how to adapt and integrate into local society.2.3 Suggestions for HelenAs Helens 4 years that Deputy Head of Marketing is the companys headquarters, there is no assignment of the experience. Therefore, she does not necessarily familia
30、r with the management model for Turkey. Therefore, management system which she used to be might not necessarily apply to Turkey. Helen should take the following adjustments to solve the problems mentioned above.First of all, Turkish culture is emotional dependence between people and the members of t
31、he other members of the organization in the sense of responsibility. Therefore, it is better to encourage Turkey employees to work as a team instead of individually. Appraisal system can also be set up based on the teamwork performance. This is still able to motivate and inspire the creative of staf
32、fs. Additionally, the Turkish people the content of their work in an uncertain disturbed. Therefore, job descriptions should be detailed which a clear statement of job title, responsible to & for, main purpose of job, duties / working conditions, and so on. Peter F. Drucker (1954) pointed out that m
33、ove the production lines to low-cost countries such as Turkey when all competitors are doing; there is no longer having a competitive advantage. Therefore, VC must find new and different ways from competitors and need to strengthen the response to the market to improve quality and implementation of
34、innovation. For short-term, VC needs is more cheap labor than competitors. For long-term, it need to have more knowledge employee for competitiveness. Helen should through training to develop multi-skilled staff, and ultimately to help VC maintain growth, and adapt to the complex competitive environ
35、ment. Also through training, to disseminate the parent company culture and enhance their sense of belonging and pride. In spite of Helen was in the marketing department, employees of VC have multi-skilling, so that she can be adjusted herself in a short time. Thus, she needs to do for HRM is suffici
36、ent survey of local environment and assess the models in order to adjustment suitable for the local HRM system.In addition, Helen as an expatriate, she must face how to adapt and integrate into local environment. The next section will be combined with Tony Rossini results of the survey, assess the p
37、roblems and issues facing VC in the management.3. Issues Facing of Expatriate and Approaches to ImproveBecause of cost considerations, localization of human resources will be used by multinational companies. Localization associated with risks such as employee loyalty is not high. Strategic considera
38、tions of the global center model, the enterprise should develop a global scale with talents. Focus on human resource management and coordination of global goals on the local response capability. Cultural differences will translate into business opportunities, which use of executives from different c
39、ountries to enhance their creativity and flexibility, and management of potential opportunities for growth. But Shay and Tracey (1997) study shows that 16 to 40% of U.S. companies are ahead of expatriate managers return home in the absence of personnel in advance, there are more than 50% of the expa
40、triate staff performance is not satisfactory. Expatriate failure, for individuals, career development may fail because of assignment seriously affected; for enterprises, the assignment failure will not only suffer direct economic loss of business, there are likely to lose the best people and oversea
41、s markets.3.1 Issues Facing VC in ManagementAccording to Tonys survey found that issues are included: After returning, first, Expatriates can not find their own position in the company. Second, expatriates have to re-adapt to the environment of the parent company and re-establish relationships with
42、colleagues. Third, they are hard to find a sense of belonging. Not everyone will interest in their experiences in foreign countries makes assignment is nothing. They can not share the experience in Europe. Forth, after returning to the cultural differences, re-adapt to the culture of their motherlan
43、d. In addition, VCs expatriates reward system is injustice and lack of transparency. Expatriate found salary discrepancies with the parent company colleagues who did the similar jobs. However, expatriates find that their wages are much higher than the local colleagues, so the embarrassment of gettin
44、g along is not easy to build relationships. Moreover, expatriates also complain that VC did not provide a suitable allowance, leading them to believe that life can not be guaranteed.Ultimately, the problems are caused by the lack of VCs HRM support. Survey ofMercer, Human Resource Consulting, shows
45、despite the extensive use of multinational companies 84% of the way of short-term assignment, but only 56% of the company has developed expatriate management policies. MNCs should start from the strategic planning; human resources management extends to all aspects of the operation of every detail to
46、 have detailed guidelines, such as personnel selection, scientific and systematic training system, a competitive compensation and reward system, flexible performance management, employee career planning and the proper placement of the family. In addition, expatriate management system is not sound th
47、at training is not systematic; reward system is lacked fairness internal and external competition; performance appraisal is inflexible.Besides, although Tonys survey did not reflect problems which were caused by expatriate families, this is a potential problem of VC. Family support and adaptation ar
48、e the expatriate staff is backed by hard work, its effectiveness even more than the protection of pay and benefits, incentives. Impeccable skills of expatriates, whether in the host country in work and life of the plan, the full support of family issues such as whether there is uncertainty. In fact,
49、 due to the lack of language skills, lack of confidence will lead to expatriates and reduce performance. At this point, the family impact of expatriate work as a direct and important role in a positive, if the discord will further reduce employee performance.3.2 Approaches to improveFirst of all, VC should make a clear purpose of assignment. There are many reasons for expatria
