Cross-Cultural Employment Analysis: Dubai, ABC Company - Case Study Example

International Human Resource Report Author’s Name Institutional Affiliation Table of Contents Cross Cultural Employment Analysis: Dubai 3 Cross Cultural Employment Analysis: Dubai 1.0. Introduction Effective management and use of cross cultural employees can be a source of experience and innovative thinking which can enhance competitiveness of an organization (Calveley, 2008). However, differences relating to culture can negatively affect the implementation of international projects (Sorge, 2012). In the contemporary world (Butteriss, 2009), globalisation has been acclaimed for turning the world to a global village. Despite of the globalisation, cross-cultural differences remain to be a great challenge for businesses opting to venture into the international market. This report discusses and describes the International Human resource in relation to recruitment, selection, training and development for ABC Company in Dubai. 1.1. ABC Company overview ABC Company has been in operation for 50 years dealing with goods that are fast moving Australia. The company opened a branch in Dubai two years ago and the branch has 100 employees, five of the employees are expatriates, the rest are locals. The current director of the company has completed his assignment and he is expected to return to Australia. This director has in many occasions voiced his concerns of differences in doing business and culture shock he has encountered in his two years in Dubai. 2.0. Culture of Dubai The business culture in Dubai is informed by strict rules and ethics which are tied into the Islamic religion. There are cultural norms that relate to the Islamic law that affect the operations of the business (Adele, 2010). Islam is the official religion and affects every aspect of life. For instance, the Islamic emphasizes on respect and modesty. The communication is always indirect, hence definite answers such as “no” are considered disrespectful. This is unlike in Australia where discussions can lead to direct answers such as “no”. During meetings, men usually shake hands before and after the meeting (Adele, 2012). However, men do not shake hands with the women. The Islamic religion does not allow alcohol which makes it illegal to have alcohol in Dubai without a license. It is only bars and hotels that are given the mandate to sell the alcohol to visitors. Drunkenness in public places can result to arrest. The same will apply for affection display in public setting (Trompenaars, 2011). The culture also affects the workplace behavior and organization. There is no typical dress style for office, unlike in Australia where an official suit that will be considered as the official dress. The workday in Dubai begins at 8.00 am and may run up to 6.00pm. In between there are breaks, the morning break, afternoon break and lunch breaks that are long. In the afternoon, there are also breaks mainly for prayers (Adele, 2011). This is unlike in Australia where the breaks are a bit short and there are normally no prayer breaks. In addition, business meetings normally delay and may affect the next scheduled meeting, this happens due to the socializing culture and the indirect communication. 3.0. Recruitment, selection, training, and development 3.1. Employment option The failure of international subsidiaries can have a huge financial cost to an organization/company. Therefore, in staffing for such positions, the companies should put great emphasis and caution when selecting the employee. In order to get the appropriate employee, first step involves deciding on whether to hire a local or an expatriate. The decision here depends on the myriad of factors that include: the cost, business environment, legal requirements, the job specifications and the company policy on international assignments (Buteriss, 2009). Many multinational companies are faced with the dilemma of either employing locals or bringing expatriates to work in branches outside company’s parent countries (Lewis, 2011). Each international assignment is unique to itself; therefore appraisal of the employee against the expected outcomes is very important. According to Butteriss (2009) performance criteria for the company should also be established and used in gauging the best type of the employee. This should be done in consideration of the international environment, the productivity standards and the strategic desires of the company. These underlying factors should be used to determine the suitable option for the company. This is normally so when the position involved is for the senior manager. In the case of ABC Company, a local director will be more favorable for the position. Locals normally have experience for running the local business and are well informed of the home business environment. This is unlike the expatriates. According to Lewis (2011), many business cultures are normally comfortable when being managed by colleagues who share the same culture as this fosters understanding. ABC already has 95 employees in the Dubai Branch, these employees will be more comfortable to deal with a manager whom they share similar culture. The cost of hiring a local is also relatively cheaper compared to employing an expatriate. The overseas allowances that apply to expatriates and the differences in cost of living between Dubai and Australia are normally included in the salary of expatriates. In addition, the impermanence of the expatriates is also costly to the company (Calverley, 2008). For an Australian to work in Dubai, he will require a work permit which sometimes is a lengthy process and which should be renewed after some time. In Australia, there is a policy on repatriates on foreign assignment which may be costly and which requires replacement after some time. The expatriates with family also need more allowances. Employing a local will avoid the inconveniences that relate to the length of time that is needed for an expatriate to acquire knowledge on the running of the local business, new motivational techniques, legal and regulatory rules that apply in a new country (Hall, 2010). Sense of ownership among the community is imperative to the acceptance of business and its products by the community. People relate the business ownership with the top manager. Therefore, having a local will foster the acceptance of the business products hence a probable increase in market share. 3.2. Recruitment and selection Recruitment and selection are very important undertakings for any business, as such, it is important for a company to invest good time planning and putting down the measures to be used in getting the best employee. According to Harzin and Van (2006) a mistake made in the process could lead a business to great consequences. The process becomes more challenging in the case of international human resource where the recruiter may not have knowledge on the education and statutory requirements. Therefore, prior analysis and familiarization of the culture, educational levels and other statutory requirements for applicants is very essential and can avert a future crisis. The recruitment involves choosing the best strategy to attract a pool of the right candidates (Harzin & Van, 2006). In the recruitment process, there are important steps that need to be laid down before the actual process starts. According to Butteriss (2009) the steps include: I. Developing the description of the position. This should include an overview of the roles and responsibilities, the required competencies, essential relationship and conditions of working. II. Outlining the resources that will be used in the sourcing of the required candidate. III. Defining the selection criteria to be applied in the screening of the applicants and subsequent interview procedure and questions. IV. Carry out preview of the recruitment and selection steps to ensure that they are within the legal framework of the jurisdiction and that they are in line with the company policies and fairness is adhered to. V. If necessary a pre-employment testing can be conducted. VI. Set up strategies that will ensure that the candidates coming for selection are handled with dignity and respect and that there are mechanisms for ensuring adequate and accurate feedback. The goal of recruitment and selection is to ensure that a company selects the most qualified and experienced person. ABC Company should look forward to employ a branch director from the local community. Therefore, the recruitment and selection should take place in Dubai. According to Hollinshead and Leat (2009), there are different recruitment strategies that businesses and organizations can use. The strategies include: advertising Use of a search agency Appointment by secondment Direct appointment Application by invitation Appointment from eligibility list 3.2.1. Advertising For the director’s position in ABC Company advertising will be of great priority. Advertising can be internal or external. The internal advertisement covers the employees already in the company while the external is open to many applicants outside the company (Hollinshead and Leat, 2009). The main objective of ABC is to get the best director for the company. External advertising of the vacancy strategy will be employed. This is because according to (Hollinshead and Leat, 2009) compared to other strategies for recruitment, external advertising has wider coverage and pulls talent from a wide geographical area. It is also cheap compared to the use of search agencies. The advertisement ensures direct involvement of the firm in the process of recruitment and selection, this guarantees control and the company can get the anticipated skills. Hence the company will attract the most qualified applicants. The advertisement will be carried in the print media in Dubai and in social networks and search job portals. The advertisement will include the position, vacant, the application process and the requirements for the position. 3.3. Selection The selection of an applicant depends on understanding of the requirements for the position to be filled (Blyton and Turnbull 2008). Using the job analysis that is carried in the recruitment the job tasks and responsibilities are established and are put into task when doing the real selection of the employee. Many companies use face to face interview in the selection of the candidates. However, there are companies that employ stringent interview mechanisms that range from written interviews to medical examination (Newman, 2003). These undertakings depend on the job specifications and requirements. The policies of the company should also be applied when doing the selection (Calveley, 2008). This ensures that the legal requirements for the exercise are fulfilled. Selection involves getting the best qualified person, therefore in addition to the interviews, reference checks and thorough scrutiny of the resumes should be carried out. Tjosvold and Newman, (2003) identified crucial steps that should be undertaken in the selection which are also applicable for ABC company: I. The selection of the tools to be used. This includes reference checks, tests, recommendation letters and interviews. II. Practical tests applicable in reference to tools agreed in selection. The questions and practical will help to determine the aptitude of the applicant. The shortlisting and selection will be carried based on merit that will be determined by assessment of the applications received. A delegation of three officers from Australia will need to travel to Dubai to carry out the selection process. It will be advisable for the interviewing panel to combining tools of selction according to (Tjosvold and Newman, 2003). The combination of the tools will help in shortlisting and subsequent appointment. Skills, knowledge and abilities will be verified during the interview. Questions for the interview will be prepared and where necessary, the applicants will be given some tasks to explain how they will handle similar tasks. The tools used in the interview will help to gauge the suitability of the applicants and the applicant who meets most of the requirements will be appointed. According to (Calveley, 2008) using these recruitment and selection strategies will ensure that the candidate selected meets all the requirements and is the best to drive the company to profitability and success. 3.4. Training and development Training and development of new employees is a critical process as it ensures new employee understands the culture of the organization, its mission and goals. According to Herzin and Van (2006), experienced and competent employees enhance the performance of company. The training will first identify the areas the new manger needs to be trained on; this will be done through an inclusive approach where the new manager will identify the areas of need. Therefore, it will be very important to ensure that the new director gets to know the operation of the company through training. The training will entail on-the-job training. On-job-training process has been found to be very effective when dealing with senior employees in charge of management. The new employee normally learns from the outgoing employee (Blayton and Turnbill, 2008). The training is expected to last for two months. An effective training should be comprehensive; this means that it should cover all the sectors for an organization. Hence, the two months are reasonable and sufficient for the new director to learn about the company (Butteriss, 2009). To accomplish an inclusive and effective training during the two months the following will be included in the plan. Orientation to the company employees: the selection committee through the assistance of the current director will introduce the new director to the other employees. Their duties will be explained in the process. Training on the organisational structure of the company which will be carried by the selection committee. Training on the mission, vision and goals of the company and it values: the outgoing director will be in charge of this section. Strategies for the company will also be included Training on the duties of the branch manager: this will be carried out by the outgoing director and will involve on-job-training. Training on the general operations of the company: this training will entail on-job-training and will be across the different sections of the company, the outgoing director will oversee the process. 4.0. Conclusion The cross cultural differences have a great impact on the running and implementation of projects in the foreign countries. The case of cultural differences between Dubai and Australia are not an isolated case, the same applies to different countries and regions. The challenge becomes even great in the field of international human resource management. Companies with international challenges are faced with the dilemma of recruiting expatriates or locals especially in the senior management levels. Before starting the recruitment, it is prudent for companies to contact prior analysis to determine the cost, business environment, legal requirements, the job specifications, the company policy on international assignments or its implications depending on the cultural implications. After making the choice clear advertisement of the vacant post should be carried out. Thereafter, selection and recruitment procedures ,subsequent training and development should be put in place to ensure the best qualified candidate is well equipped with the organizations knowledge to execute the mandate given. 5.0. References Adele M. (2011). Culture and Work Styles in Dubai. Michigan: Herman. Butteriss, M. (2009). The complete Guide to Human Resources for Entrepreneurs. Toronto: John Willey & Sons. Calveley, M. (2008). Competencies of international human resource managers. London: Palgrave Macmillan. Blyton, P. and Turnbull, P. (2008). The Dynamics of Employee Relations. Basingstoke: Palgrave Macmillan. Hall, E.T. and Hall, M.R. (2010). Understanding Cultural Differences. Yarmouth, MA: Intercultural Press. Harzing A.W. and Van R. J. (2006). International Human Resource Management. London: Sage Publications. Hollinshead, G. and Leat, M. (2009). Human Resource Management: An International and Comparative Perspective. London: Pitman Publishing. Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations across Nations. Thousand Oaks, CA: Sage Publications. Lewis, R.D. (2011). When Cultures Collide: Managing Successfully Across Cultures. London: Nicholas Brealey Publishing. Sorge, A. (2012). Cross-national differences in human resources and organization. London: Sage Publications. Tjosvold, S. and Newman, J. (2003). Practical Steps to Employee Selection: Cultivating Personnel Productivity. University of California. Trompenaars, F. and Hampden, T, C. (2011). Riding the Waves of Culture: Understanding Cultural Diversity in Business. London: Nicholas Brealey Publishing. Read More