Overview of Wesfarmers
Discuss about the Local Perspective on Expatriate Management.
The ever changing nature of the business world has made it imperative for the various business organizations of the present times to take the help of various kinds of innovative strategies as well as methods for the purposes of their business (Vaiman, Scullion and Collings 2012). Therefore, it is generally that various business organizations of the present times take the help of the concept of globalization and others not only to enhance the rate of annual profit gained by them but also to “bring about the overall growth as well as the development of the business organizations or companies” (Vaiman, Scullion and Collings 2012). Many scholars are of the opinion that the “path of globalization” which the various organizations follow in the preset times also helps them to reach out to a larger customer base and also a market to sell the surplus products as well as services manufactured by them (Mayrhofer, Reichel and Sparrow 2012). However, it is generally seen that these organizations which “follow the path of globalization” need to take several factors into consideration for the purpose of their business process (Mayrhofer, Reichel and Sparrow 2012). The primary factor which the majority of these business organizations need to take into effective consideration is the factor of culture (Dabic, González-Loureiro and Harvey 2015). It is significant to note that there are inherent differences between the cultures of the various nations of the world and many people are of the opinion that culture is a factor which determines the business style used by a particular nation (Dabic, González-Loureiro and Harvey 2015). Therefore, in the contemporary business world it is seen that apart from taking into effective consideration the macro as well as micro environments in which a particular organization is operational the concerned organization also needs to take into consideration the factor of culture as well for the process of their business operations (Dabic, González-Loureiro and Harvey 2015). This report will discuss about the way the national culture of a particular nation impacts an “international manager’s ability to effectively deal with different cultures” through the lens of the business organization “Wesfarmers”.
The organization “Wesfarmers” established in 1914 has attained a considerable amount of success in the recent times (Wesfarmers 2018). The organization is “an Australian conglomerate, headquartered in Perth, Western Australia, with interests predominantly in Australian and New Zealand retail, chemicals, fertilizers, coal mining and industrial and safety products” (Wesfarmers 2018). The organization was founded due to an acquisition bid made by the “Farmers’ and Settlers’ Association of Western Australia” on the “West Australian Producers’ Union” in 1914 (Wesfarmers 2018). It is significant to note that since then the business of the organization has undergone drastic modification and it is a reflection of this particular fact that the organization in the present times offers a wide range of products as well as services to the customers from the various parts of the world (Dabic, González-Loureiro and Harvey 2015). The organization though initially started in the nation of Australia however soon followed the path of globalization and is currently operational in different countries of the world like Ireland, Bangladesh, New Zealand, United Kingdom and others (Wesfarmers 2018). Furthermore, the organization initially started with the objective to provide effective products as well as services to the “Western Australian farmers” however within a very short time the organization grew as one of the largest retail business organizations not only of the nation of Australia but also of the world (Wesfarmers 2018). The organization in addition to the agricultural products is also a leading supplier of coal, petroleum and other natural resources (Wesfarmers 2018). The organization is currently following the policy of “merger and acquisition” and following this particular policy the organization in the recent times has acquired some of the largest retail companies like Kmart, Target and others (Wesfarmers 2018). It is a reflection of these diverse interests which the organization has undertaken in the recent times that the organization in the recent times has emerged as the largest business organization of the nation of Australia in terms of the annual revenue earned by the organization (Wesfarmers 2018). In addition to this, the organization is the largest private recruiter in the nation of Australia and has more than 220,000 employees related to the organization related to it in the different parts of the world (Wesfarmers 2018). The net revenue generated by the organization for the year 2016 was “A$65.98 billion” (Wesfarmers 2018). The below given figure shows the ranking of the organization within the contemporary business world of Australia
Role of Culture in the Contemporary Business World
The factor of culture has emerged as one of the most important ones in the present times and it is a reflection of this particular factor that the various business managers are increasingly turning towards this particular factor for the effective management of the organization to which they are related (Thite, Wilkinson and Shah 2012). Of the most common issues which the various business organizations in the present times need to take into consideration is the factor of “cross cultural miscommunication” (Thite, Wilkinson and Shah 2012). The internationalization of the various business organizations in the present times has much diversified the various workforces which are related to the various business organizations (Thite, Wilkinson and Shah 2012). The diversification of the entails with itself various kinds of benefits however there are some inherent negative aspects of the process as well. The problem of “cross cultural miscommunication” inadvertently comes into play when within a particular workforce there are individuals from different cultural as well as social backgrounds (Björkman and Welch 2015). It is generally seen that different kinds of management styles are required for the management of these workforces and one general style does not suffice for all the employees who are relayed to a particular organization (Björkman and Welch 2015). Therefore, the role of a manager becomes very important in this particular context as he or she is required to manage all these different entities in order to “not only to enhance the individual performance of each employees related to the organization but also to improve the overall performance of the organization” (Cavusgil et al. 2014). Thus, the various international managers of the present times are required to follow the inherent cultural differences between the various nations in which the organization to which he or she is related is transacting their business (Cavusgil et al. 2014). It is here that the importance of the various cultural models like Hofstede’s cultural model, Globe model of culture and others gain prominence (Cavusgil et al. 2014). These cultural models give an idea to the various international about the strategies as well as policies which they need to follow for the effective management of the employees (Caprar et al. 2015). For example, the organization is operational in the nations of Ireland, Bangladesh, United Kingdom and others apart from the nation of Australia (Caprar et al. 2015). Thus, the international managers related to this particular organization need to take the inherent the cultural differences between the two nations. For example, an analysis of the two nations of Australia and Bangladesh on Hofstede’s cultural model would reveal the fact that the people of Australia score far higher than the people of Bangladesh on the index of individualism (Caprar et al. 2015). Therefore, the people of the nation of Australia are more likely to indulge in individual activities than the people of the nation of Bangladesh (Caprar et al. 2015). Furthermore, the people of the nation of Australia score far higher on the index of masculinity than the people of the nation of Bangladesh which means that the people of the nation of Australia are more likely to be influenced by the concepts of success, achievement and competition than the people of the nation of Bangladesh (Poulis, Poulis and Plakoyiannaki 2013).
Importance of Cross-Cultural Communication and Management
The various managers related to a particular business organization in the contemporary business world play a very significant role. They are not only required to effectively manage the diverse entities related to the organization but also to create an environment where in these employees will be able to perform to their maximum potential (Mayrhofer, Reichel and Sparrow 2012). Therefore, the various present day managers need to take into consideration these differences in the cultures of the different nations in which they are operational. For example, the managers of the organization Wesfarmers need to take the differences between the cultures of the nations of Australia and the nations in which they are operational (Mayrhofer, Reichel and Sparrow 2012). The managers can take the help of various kinds of methods to overcome the diverse barriers which they encounter during the process of communication with the diverse individuals from different cultural as well as social backgrounds who are related to the organization (Dabic, González-Loureiro and Harvey 2015). The managers therefore need to focus more on enhancing the process of communication by taking less of technical terms or jargons during the process of communication, taking the help of visuals as well as audios during the process of communication, use of gestures and body languages and others in order to effectively convey the messages to the different employees related to the organization (Dabic, González-Loureiro and Harvey 2015).
The various business organizations during the process of expansion need to deal with various kinds of problems or challenges. However, the most important ones during this particular point of time is the method of staffing which they are to follow (Vaiman, Scullion and Collings 2012). There are various kinds of options which the expanding organizations have at their disposal at this particular phase. However, the most commonly used methods are ethnocentric method, geocentric method and polycentric methods of staffing (Vaiman, Scullion and Collings 2012). This particular method of staffing involves giving the managerial positions and other important positions to the expatriates from the home nation of the business organization involved in the process. Many scholars are of the opinion that this particular method of staffing is very suitable for the various business organizations of the present times as the important positions of the organizations are provided to the individuals who are from the home nation of the organization and have an understanding of the “goals as well as the objectives of the organization under consideration and also have an understanding of the thing which the organization under consideration is trying to achieve” (Vaiman, Scullion and Collings 2012). It is significant to note that the various business organizations give these important positions to the individuals who already have prior experience in managing those positions and thus it is likely that they would be able to manage that position and the duties that are required of them in the host country in an effective manner (Thite, Wilkinson and Shah 2012). The organization Wesfarmers also follows this particular method for the process of staffing in their foreign ventures in the nations of Bangladesh, Ireland, United Kingdom and others (Thite, Wilkinson and Shah 2012). However, in the recent times it is seen that this particular method of staffing has received various kinds of criticisms as it is often seen that the deserving individuals from the host nations do not get appointed to these important positions (Thite, Wilkinson and Shah 2012). Many scholars are of the opinion that this particular fact causes a gross loss to the prospects of the organization and leads to various kinds of disputes as well as grievances (Thite, Wilkinson and Shah 2012).
Cultural Models for Effective Management
In the recent times it is seen that the polycentric method of international staffing has gained prominence in the international business (Briscoe, Tarique and Schuler 2012). This particular method of international staffing involves the filling up of the managerial as well as the other important positions of the organizations with the deserving individuals from the host country itself (Briscoe, Tarique and Schuler 2012). Many scholars are of the opinion that this particular method is especially suitable for the various business organizations of the present times as the most important positions are provided to the individuals from the host country who already have an idea about the culture as well as the way business is being conducted in that particular country (Briscoe, Tarique and Schuler 2012). Therefore, it can be said that the primary objective behind the use of this particular method is to reduce the various conflicts as well as the conflicts which the various business organizations are likely to face on the basis of the cultural differences between the host and the native country in which the organization is operational (Cavusgil et al. 2014). However, it is often seen that giving all the important positions to the individuals from the host solely with the objective to reduce the conflicts as well as issues related to cultural context generally deprives the efficient as well as the hard working individuals of their opportunities and often leads to the poor management of the offshore centers related to the organization (Cavusgil et al. 2014).
The geocentric method of international staffing in the recent times has emerged as one of the most important ones in the present times and is increasingly being used by the various business organizations for the purposes of international staffing (Poulis, Poulis and Plakoyiannaki 2013). This particular method of international staffing deals with the filling up of the managerial positions as well as the other important positions related to the international center of a particular business organization with the individuals who are not only capable but also deserving for that particular job designation (Poulis, Poulis and Plakoyiannaki 2013). The factor whether the individual who is selected for a particular managerial position or other important position related to the organization is from the host country or from the native does not matter for this particular method of staffing (Harzing, Pudelko and Reiche 2016). Many scholars are of the opinion that this is one of the best methods of international staffing as it preference neither to the individuals from the host nations or from the native nation in which the organization is operational and the sole consideration for this particular method is ability or capability of the individual are involved in the process (Harzing, Pudelko and Reiche 2016). It is significant to note that the organization under discussion here Wesfarmers in the recent times has started to take the help of this particular method of international staffing for the staffing of their offshore operational centers. As already mentioned the organization under discussion in the earlier times used to take the help of the ethnocentric method of international staffing in its offshore centers of Bangladesh, Ireland, United Kingdom and others (Harzing, Pudelko and Reiche 2016). However, the recent changes in the business world have made it imperative for the organization under consideration here to take the help of this particular method of staffing. Furthermore, many scholars are of the opinion that this particular method of international staffing also helps in the reduction of the conflicts as well as the grievances of the employees who are related to the organization as the important designations of the organization are given to the individuals on the basis of their talent as and capability and not on the basis of their nationality (Poulis, Poulis and Plakoyiannaki 2013).
Staffing Methods during Expansion
Conclusion
The process of globalization has provided several benefits to the various business organizations however at the same time it has added much to the problems faced by the various business organizations in their offshore centers. One of the most common problems faced by the business organizations in their offshore centers is the problem of staffing. It is significant to note that there are various kinds of staffing methods which are available to the diverse business organizations in the present times and the success or the failure of each method depends on the context as well as the scenario in which they are being used. The particular industry for which the staffing method is being used also determines to a significant whether the method of staffing which is being used by the particular organization would be effective or not. Furthermore, in the recent times it is also seen that culture also plays a significant role in the business process of the various business organizations. Therefore, it becomes very important for the various managers related to a particular business organization to take this particular factor into effective consideration.
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