MGF2656 Assessment 2: Individual Essay PDF

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MGF 2656 INDIVIDUAL ESSAYTopic : People in global teams should all be managed the same as they are part of the samecompany1. Introduction1 OverviewIt is believed that global teams should all have their members managed the same, as they all operate under the same corporation. Despite the fact that th...

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MGF 2656 INDIVIDUAL ESSAY Topic: People in global teams should all be managed the same as they are part of the same company

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1. Introduction 1.1 Overview It is believed that global teams should all have their members managed the same, as they all operate under the same corporation. Despite the fact that the all of the employees are in the same company, the managing strategy should be flexible to best adapt to different cultures from around the world which may create various problems and significantly impact on the group work efficiency. In order to obtain a competitive advantage, today's businesses focus on how the diverse global workforce can leverage their local knowledge and access a larger market. On the other hand, physically separated teams often encounter a serious issue: social distance, or an emotional disconnect, which can lead to a misunderstanding and mistrust. Therefore, managers who lead multinational teams have hurdles in every respect. It's incredibly difficult to work together when individuals are all sitting in the same room, because a team's success depends on everyone working together in the same physical location. However, when members originate from a variety of nations and have various job functions and are situated in various areas, communication may quickly falter, misunderstandings arise, and collaboration can quickly turn to mistrust. 1.2 Outline This essay will critically analyze the importance of HR practices to the performance and efficiency of global teams through demonstrating Matching Model, Contextual model, 5 P Model and Integrative IHRM Framework before comparing and contrasting those three models and a framework. Next, this essay will criticize the application of IHRM models into contexts coming with contingency and universalist theories. After that, the factors affecting IHRM approach will

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then be carefully illustrated including institutional theory and cultural approach with empirical examples given. Additionally, the next part will be recommendations on how to make HR practices efficient for global teams in the international context before giving conclusions which summarizes the content of this essay.

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2.1. Models and framework comparison IHRM covers how an organization views and manages their workforce on a worldwide scale. IHRM refers to companies that take an international approach to managing their human resources. Most “typical” HR responsibilities are encompassed in IHRM, including recruitment, selection, performance management, training and development, and compensation, albeit these functions are considered and managed internationally, according to Globally sustainable management: a dynamic model of IHRM learning and control. (2010). Additionally, IHRM may include activities such as international assignments, a variety of industrial relation activities (such as meeting varying country legal and tax requirements by applying different international collective agreements and employment contracts), global succession planning, and others. The first IHRM model to be assessed is Matching/Michigan Model. People are resources in a same way as any other corporate resource, as the Michigan/Matching model, with its tougher, less humanistic edge, maintains. McDonnell, Lavelle and Gunnigle (2014) stated that the Harvard 'map' has similarities, but the Michigan/Matching model holds that employees are resources just like anything else. Managers must handle both people and materials in the same way. The utilization of these things needs to be maximized. To do this, they must be purchased economically, used carefully, and maximized. It is essentially the need that human resource strategies must be closely linked to the entire business strategies. In addition, it trivializes the importance of HR as a department that only handles short-term situations and is under the radar. This paradigm, for instance, does not clearly express how the existing worries of employees who are in international assignments would be addressed. Many people have criticized the matching model, indicated by Holtbrügge and Mohr (2011) and McDonnell, Lavelle and Gunnigle (2014). On a more intuitive, political, and subjective level, strategies are decided and implemented.

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Additionally, it is both prescriptive and normative, therefore it follows that HR strategy should be based on the overall business strategy. The next IHRM model that needs considering is Contextual model. Holtbrügge and Mohr (2011) illustrated that, in contrast to traditional approaches to HR, the contextual model of HRM stresses the significance of outside elements such as social, institutional, and political pressures, which have been underappreciated in other theories. The environmental variables are different in each nation and sometimes even from one province to another in the same country. In addition to taking into account environmental influences, the contextual approach includes a person's resources, as indicated by McDonnell, Lavelle and Gunnigle (2014). Furthermore, it is worth remembering that there are also ties between the internal and external organizational setting, which play a critical role in the area of HRM. There is a gap between company strategy and HRM, making it difficult to get a straight answer about HR policy and practices, unlike in Matching Model in which is possible to link HR rules and practices to corporate strategy. For instance, HR practices and strategy can be changed to adapt depending on the outer environment of team members who are taking international assignments in different countries. Moving on to the next HRM model being assessed is 5P Model. The 5P's Model, which refers to the five constitutional elements of governance: Purpose, Principles, Processes, People, and Performance, forms the framework of The 5P's Model. This model suggests that balancing and aligning these five principles will ensure business success. For the continuous advancement of the companies, 5P's Model functions with the same components, serving as a tool for longterm stability. Ogunyomi and Bruning (2016) indicated that it is understood that strategy is vital in prompting the system. The system in turn affects staff behavior, and this behavior in turn influences the business's overall performance. The 5P's HRM Model asserts that organizational

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performance is primarily attributable to the performance of people in various processes who are aligned with the organization's purpose and mission. As this model has more concentration on international factors combined with HR practices and strategic needs, it is more favorable to apply on international teams. Integrative IHRM Framework is the last to be taken into consideration which reflects the international transfer of HRM practices. According to the framework, those strategic needs applicable to MNEs are all about hiring, appraising, compensating, training, and developing employees. Balancing the needs of variation (diversity), co-ordination, and control in order to maintain a company's global competitiveness, adaptability, and organizational learning is the key objective in interunit links, according to Ogunyomi and Bruning (2016). In order to boost global competitiveness, flexibility, and learning, interunit linkages for SIHRM aim to meet autonomy, co-ordination, and control requirements by balancing the three. Therefore, the framework adjusts the unit's HR procedures to reflect local laws and social standards, as well as the unit's goals. This includes changes in the HR practices to help those individuals under global assignments. Holtbrügge and Mohr (2011) and Ogunyomi and Bruning (2016) illustrated that the success of international corporations depends on the quality of the enterprise's human resources, and this in turn depends on how well the MNC is able to manage and develop its human resources. However, for this framework, there are far too many uncontrolled variables and potentially unknown variables in the experiment. 2.2 Application of IHRM models HRM plays a significant role in managing global teams by providing the context in which the teams operate. In order to take advantage of diverse viewpoints while minimizing division within the project, it is important to establish the right team environment. Global teams have

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various difficulties; the context of global teams can only be improved by the implementation of HRM, according to Peng Cui, Walsh and Shaoming (2014) and Bookhamer and Zuopeng (2016). Global teams can be better enabled via the effective management of team situational strength, which adds context and depth to the typical concept of team membership. Theories of contingency and universalist approaches will now be discussed and compared in order to clarify the application of HRM into global context. Contingency is a management theory that states the best management style for a circumstance is reliant on context, since a singular, rigid strategy is inefficient in the long term. Peng Cui, Walsh and Shaoming (2014) indicated that, in general, contingency managers will consider the scenario and their own methods of managing, working to make sure they work together. Using the ability to learn from an isolated incident in order to better affect future management of a scenario may be extremely advantageous to the organization and to the ability to address risk as well. One bonus of being adaptable is that employees can quickly handle outside pressure or other changes. Leaders might also have greater access to new abilities by adopting a contingency approach. This theory can be applied to global context as changes in HR practices to best adapt with the different external environment such as cultures of global members being in host country. The contingencies theory posits that interactions matter rather than simple linear relationships, whereas universalistic theory maintains that HRM's effect on organizational performance is direct, as stated by Mockaitis, Zander and De Cieri (2016). With regards to all parts of HR including hiring, training, and employee motivation, it's a universal approach to assume that 'best practices' can be similarly applied to each company, regardless of the nature of the firm's distinctiveness. ‘Best practice' or universalist approach to HRM pertains to the belief that there is a fixed set of optimal HRM strategies and their implementation

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guarantees favorable results no matter the context of a company (Mockaitis, Zander and De Cieri, 2016). Therefore, in global teams in which there is existence of external factors such as host country variables including different cultures, norms, language, …, contingency theory which continually changes and alters IHRM strategy is the superior choice under consideration. 2.3 Factors affecting IHRM strategy Various factors which impact on IHRM strategy should now be considered. Firstly, institutional theory looks at organizations and management methods and sees the results of social pressures rather than financial motivations. It has become a prominent theory of management because it is capable of explaining why organizational behavior does not follow traditional economic theory. To understand why management innovations become embraced by or spread throughout organizations even while they don't improve operational efficiency or effectiveness, among other things, they can be utilized to explain the phenomena, Henderson, Stackman and Lindekilde (2016) and Miska, Witt and Stahl (2016) demonstrated. Institutional theory says that social demand for conformity and legitimacy are far more influential than technical pressure for economic success. According to the theory, international companies are influenced by domestic, regional and global workforces and IHRM needs to consider some institutional factors such as local governments, social networks and regional economic policies (Ogunyomi and Bruning, 2016). Moreover, societal restraints affect how much transfer of HRM occurs within MNCs as they adopt local organizational standards for enterprises and operations. Next, differences across countries can be explained and understood in the context of the culture of each country. Cultural approach implementations offer a variety of advantages that assist a business in working towards a united aim. According to Henderson, Stackman and Lindekilde (2016), it indicates that in organizations that have the financial ability to support a

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new culture, the cultural approach is most effective. Moreover, culturally distant subsidiaries tend to encounter difficulties when trying to adjust to their new environments, as stated by Steers, Sanchez-Runde and Nardon (2012). This approach to strategic management answers the issue "How can I get my full organization commitment to our goals and strategies?" by using the Collaborative Approach to lower levels in the organization. Strategic leaders should have everyone focused on what the company's mission is and communicate it to everyone so that people can make decisions on their own about how to do their jobs (Steers, Sanchez-Runde and Nardon,2012). His duties involve setting broad standards, but he is also in charge of coaching people so they can make decisions on their own about where to go with the executive plan.

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2.4 Recommendations Firstly, managing global teams entails understanding that people in different nations operate in different manners and have various cultures. It is the manager's responsibility to ensure that each of his teams is given the freedom to operate how they choose, unless doing so impacts results, as illustrated by Butler et al (2018). This will make everyone feel better, and it will ensure that things are done in a timely manner. Using different management techniques depending on the location can allow project leads to better help run projects. To ensure a more flexible work environment, which will help support the global team, the leader should allow good practices to take shape by making regional concessions for what is best in that location. Secondly, managers have a dizzying number of options when it comes to communication and project management tools, given the range of accessible technology. There is a risk of information overload if all the many types of platforms available are used to stay in touch with the staffs (Saonee et al, 2011). One has a hard time concentrating and staying focused when faced with communication overload on several devices. It's possible to streamline the utilization of these resources by mapping, identifying, and minimizing redundancy. After getting the list down to two or three tools, those tools can be explained in an employee communication policy to highlight how and when they are to be used to complete tasks.

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Conclusion This essay has critically analyzed the importance of HR practices to the performance and efficiency of global teams through demonstrating Matching Model, Contextual model, 5 P Model and Integrative IHRM Framework before comparing and contrasting them. It has been shown that each model has its own perks, however, the Matching Model is considered to not be appropriately applied to global team as there is almost no involvement of contextual factor including environmental, cultural and international contexts which are main problems regarding managing global teams. Next, the essay has criticized the application of IHRM models into contexts coming with contingency and universalist theories and came to conclude that contingency theory is superior due to consideration of external and internal factors. After that, the factors affecting IHRM approach have been carefully illustrated including institutional theory and cultural approach with empirical examples given. Finally, the recommendations on how to make HR practices efficient for global teams in the international context which include ensuring a more flexible work environment and building a communications strategy have been given.

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Reference list Bookhamer, P., & Zuopeng (Justin), Z. (2016). Knowledge Management in a Global Context: A Case Study. Information Resources Management Journal, 29(1), 57–74. https://doi.org/10.4018/IRMJ.2016010104 Butler, C. L., Minbaeva, D., Mäkelä, K., Maloney, M. M., Nardon, L., Paunova, M., & Zimmermann, A. (2018). Towards a strategic understanding of global teams and their HR implications: an expert dialogue. International Journal of Human Resource Management, 29(14), 2209–2229. https://doi.org/10.1080/09585192.2018.1428720 Globally sustainable management: a dynamic model of IHRM learning and control. (2010). Learning Organization, 17(2), 133–148. https://doi.org/10.1108/09696471011019853 Henderson, L. S., Stackman, R. W., & Lindekilde, R. (2016). The centrality of communication norm alignment, role clarity, and trust in global project teams. International Journal of Project Management, 34(8), 1717–1730. https://doi.org/10.1016/j.ijproman.2016.09.012 Holtbrügge, D., & Mohr, A. (2011). Subsidiary Interdependencies and International Human Resource Management Practices in German MNCs. Management International Review (MIR), 51(1), 93–115. https://doi.org/10.1007/s11575-010-0063-y McDonnell, A., Lavelle, J., & Gunnigle, P. (2014). Human Resource Management in Multinational Enterprises: Evidence From a Late Industrializing Economy. Management International Review (MIR), 54(3), 361–380. https://doi.org/10.1007/s11575-014-0202-y

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Miska, C., Witt, M. A., & Stahl, G. K. (2016). Drivers of Global CSR Integration and Local CSR Responsiveness: Evidence from Chinese MNEs. Business Ethics Quarterly, 26(3), 317–345. https://doi.org/10.1017/beq.2016.13 Mockaitis, A. I., Zander, L., & De Cieri, H. (2016). Special issue of International Journal of Human Resource Management : The benefits of global teams for international organizations: HR implications. International Journal of Human Resource Management, 27(1), 109–112. https://doi.org/10.1080/09585192.2015.1094289 Ogunyomi, P., & Bruning, N. S. (2016). Human resource management and organizational performance of small and medium enterprises (SMEs) in Nigeria. International Journal of Human Resource Management, 27(6), 612–634. https://doi.org/10.1080/09585192.2015.1033640 Peng Cui, A., Walsh, M. F., & Shaoming Z. (2014). The Importance of Strategic Fit Between Host--Home Country Similarity and Exploration Exploitation Strategies on Small and MediumSized Enterprises’ Performance: A Contingency Perspective. Journal of International Marketing, 22(4), 67–85. https://doi.org/10.1509/jim.14.0045 Saonee, S., Manju A., Suprateek S., & Kirkeby, S. (2011). The Role of Communication and Trust in Global Virtual Teams: A Social Network Perspective. Journal of Management Information Systems, 28(1), 273–309. https://doi.org/10.2753/MIS0742-1222280109 Steers, R. M., Sanchez-Runde, C., & Nardon, L. (2012). Leadership in a global context: New directions in research and theory development. Journal of World Business, 47(4), 479–482. https://doi.org/10.1016/j.jwb.2012.01.001...