Case 1
Introduction
In the contemporary world, the economies of many countries (developing and developed) are heavily affected by the financial crises of complex natures. As a result, small and large companies tend to experience the effects of local and international financial challenges and face their outcomes such as the decreased revenue and the need to cut budgets and pursue savings. At the same time, some economies continue to grow regardless of the circumstances.
Situation
Alison, who works as the HRD manager for a large financial institution is facing the inevitable funding cutbacks for a range of employee development programs. The HRD manager has four options – accepting the halved budget and working with what is left, fighting cutbacks and requesting full funding, asking for smaller cutbacks (25% instead of 50%), or resigning in protest.
Risks and benefits of each option
The latter option is the least beneficial for Alison, the organization, and the programs because it will result in the loss of revenue for the institution, the need to find a professional to replace Alison, and possible discontinuation of the programs. Requesting full funding, Alison would risk getting in conflict with her superiors and aggravating the situation even more; the only benefit of this option is the unlikely possibility of gaining a full budget. Working with 50% of her previous budget, Alison would have to find ways to adjust the programs; most likely, one or two of them would have to be temporarily discontinued, or all three would remain and have to be restructured and minimized. This option could still benefit a certain number of participants. Finally, a request of a 25% cutback instead of 50% could save a portion of the programs and still maintain their value; however, Alison would need to convince the executives that the programs are useful for the institution. Also, adjusting the programs to a smaller budget, the HRD manager would have to evaluate them and decide which ones should be cut and by how much.
Alternatives
As an alternative course of action, Alison could reassess her programs and combine them into a single broad training plan comprised of the essential elements of the three current programs. Based on the portion of the budget provided, the combined program could be made more or less elaborate on certain topics. However, for this option to succeed, Alison would need to evaluate different components of the existing programs and decide which ones are more detrimental and should become the parts of the new combined plan.
Recommendations
Since leadership training is the biggest program, it should remain the focus of the combined coaching plan (60% of the curriculum and 660000$ budget). Additionally, the elements of the career development program would comprise 40% of the new plan and cost 200000$. The remaining 140000$ could be spent on scholarships, thus accepting fewer participants than before.
Case 2
Situation and research required
ECC Electronics in the company intends to expand taking advantage of a growing economy in Shenzhen, China. To establish an office and a factory in the city, Ian, the HR director for ECC Electronics needs to research the staffing opportunities for both types of workplaces, taking into consideration the core competencies and skills desired for the future employees. Ian needs to find out whether or not the company would have to hire people from different cities or invite expatriate workers and if it is going to have a proper base of applicants.
Hiring from within
The major issue associated with the decision to fill the managers’ positions from within the company is their origin. Even with a comprehensive training addressing the cultural differences and business approaches, the western workers would still experience difficulties fitting in the Chinese organizational culture due to the language gap – the problem that cannot be solved with the help of professional training.
Factors to be considered
Relocating people to China, the company would need to consider their salaries. In particular, it is critical to decide whether the expatriates would be paid according to the standards and pay rates of their country of origin or destination. The additional costs would include perks such as accommodation, cars, basic living expenses, and health insurance that would be granted to the relocated individuals.
Advantages and disadvantages of hiring nationals
First of all, the labor costs in China are lower than in Australia, so the pay rates for the nationals will be lower as well. Additionally, the Chinese nationals will require no training covering the cultural gaps. These are the advantages of hiring managers from China. The major disadvantage would be the lack of supervisors from the main office to promote the established organizational culture and philosophy.
Combined team
The advantage of the combined team of managers would be the shared cultural experience helping to adjust the existing organizational strategies to the new region and enrich the organization’s philosophy. The primary disadvantage is a possibility of misunderstanding and cultural tensions between the team members from China and Australia causing the exclusion of one of the parties or a diminished performance of the entire branch.
Recommendations and Conclusion
Ian should recommend investing in thorough training for the expatriate managers including the language and cultural courses. In that way, ECC Electronics would be able to create a diverse team incorporating the established and new approaches and thus foster the inclusion of the new branch in the organizational culture. However, the team would require close monitoring helping to address the possible cultural tensions.