Standardization of Talent and Performance Management Internationally

Question: Discuss about the Standardization of Talent Management and Performance Management Internationally. Answer: Introduction The purpose of this memorandum is to identify and present the arguments on the issues of standardizing HR processes of talent management and performance management in our companies operating and providing services in Australia, France and Indonesia. It strategically important to consider the differences in definitions and procedures of talent management in all these three countries as well as to understand how performance is assessed in each country, whether it is pay for performance or forced distribution. Talent management of high potential and knowledgeable workers is a critical and strategic component for the sustainable competitive advantage in the global marketplace(Vaiman, et al., 2012). Most of international businesses are struggling to attract, develop and retain the scarce talent in its home and host country. There are multiple competitive challenges from the global perspective such as economy, socio-cultural differences and institutional aspects/distance (government)that i mpacts the talent management and performance management in an organization. The theoretical and empirical evidences have positioned culture as an antecedent, mediator and moderator and concept of institutional distance that should not be ignored when considering international expansion and transfer of HR policies and practices as it becomes more complicated with greater distances(Edwards, et al., 2016). Therefore, before we impose a common HR system, it is critical to identify and analyse the impact of these factors on following components: talent management (workforce planning, job design, recruitment and selectionincluding onboarding process, talent deployment) and performance management (rewards and recognition,training and development, career mapping, leadership development and succession planning)(Vance Paik, 2015). This memo will provide the theoretical evidences to support my argument on the issues followed by the recommendations against imposing common system of HR processe s in the conclusion to determine that the component of talent management and performance management that works for Australia will not necessarily work for France or Indonesia. Major components influencing standardization of HR system Culture and institutional distances are two major components that we should consider before planning and making any decisions. The understanding of cultural values will be invaluable to deal with the employees reaction to our organizational culture, policies, rewards and system across our global operations. Cultural Context The cultural and work ethics of management practices that is effective for our Australian employees will vary from those of French and Indonesian employees. Culture is a system of values (individuals belief) and norms (prescribed behaviours) shared between group of people that constitutes design of their living in a specific society, further influenced by religion, social structures, languages, education and so on. Therefore, to avoid any disappointing results it is essential for us to ensure that we and our business managers/leaders are knowledgeable about these factors to understand reasons and motivations linked to specific behaviours and cultural norms(Vance Paik, 2015). I have explored and presented my findings based on Hofstede and Globe study followed by the considerations of these researches below: Hofstedes Model of Cultural Dimensions According to Geert Hofstede, national culture cannot be changed, but we should try to understand and respect it. His study is considered one of the most comprehensive study of national culture measured on the spheres of interpersonal relationships and hierarchies that influences workplace values. Initially, his study identified four dimensions in national culture. These four dimensions were power distance, individualism vs collectivism, masculinity vs femininity and uncertainty avoidance. Hofstede and Bond later added fifth dimension of Confucian dynamism (Vance Paik, 2015; Shuaib, 2012). It further became 6-D model after collective research by him, Gert Jan Hofstede, Michael Minkov and their research teams (Hofstede Insights, 2018) that added indulgence as sixth cultural dimension. GLOBE Study This is most recent and comprehensive research on culture and its impact on leadership. There are nine cultural dimensions that explains distinctiveness of culture across countries which influences effectiveness of leadership from global managers perspective. Six out of nine cultural dimensions replicate Hofstede findings, these were uncertainty avoidance, power distance, institutional and in-group collectivism, gender egalitarianism and assertiveness orientation and the other three cultural dimensions discovered under Globe study were future orientation, performance orientation and humane orientation (Vance Paik, 2015). Collective definition of Hofstede and Globe Studys cultural dimensions Power distance Deals with the society or individuals acceptance to inequality (distribution of power). Individualism vs collectivism Individualism is the degree in which the individuals interest prevails over groups interest within a society. Collectivism is interdependence in which people belonging to a group take care of each other in exchange for loyalty. Under Globe study, it was separated into institutional (Collectivism I) and in-group collectivism (Collectivism II). Institutional collectivism is concerned with organization and national institutional practices and in-group collectivism is individuals pride and loyalty towards family or organization. Masculinity vs femininity Masculine here means what motivates an individual to be the best such as competition, achievement and success whereas feminine is to like what you do such as caring others and quality life. Under globe study, it is more like gender egalitarianism vs assertiveness where feminine culture means cooperation and masculine culture means competition to achieve goal. Uncertainty avoidance It is a tolerance towards unpredictable such as being threatened by unknown or ambiguous situation. Confucian Dynamism (long-term vs short term orientation) this describes how an individual or society deals with the present or future challenges while maintaining links with its own past. Assertiveness It is an extent to which individuals are assertive, confrontational and aggressive in the relationships. Future Orientation This means planning or investing for future. Performance Orientation - Encouraging and rewarding for performance improvement and excellence. Humane orientation - Encouraging and rewarding for generosity and care(Vance Paik, 2015). Indulgence The extent to which individual controls their desires and impulses based on how they socialize. Indulgence is a weak control and restraint is a strong control(Hofstede Insights, 2018). Considerations of Cultural Dimension of Australia, France and Indonesia We can distinguish the cultural values of Australia, France and Indonesia based on cultural dimensions of Hofstedes 6-D model and Globe Study. Below is the explanation of cultural dimension of each country that we should highly consider as it impacts talent and performance management: The cultural dimension score on Figure 1 demonstrates variations in power distances between three countries where Australia is a lower power distance and Indonesia is a higher power distance country. Even on globe study (Figure 2), power distance for Australia is lower than average globe score. Considering the scores of both study, it can be said that employees in Australia are more motivated for the power need and will more likely feel that positions with power and authority are attainable(Moberg Leasher, 2011). France is high on power distance in cultural practices but relatively low on societal value. They dont expect equal distribution of power, so have one or two level of hierarchy Referring to Figure 1 and 2, it can be said that employees in Australia are more performance oriented, high on gender egalitarian (Masculinity) as compared to France and Indonesia means there is desire of equity. They pride in their life successes and achievements which are linked to decisions of hiring and promotions at workplace. They resolve conflicts at individual level and their goal is to win.In-group collectivism (individualism), Australia in terms of societal value is higher than France and Indonesia which demonstrates individuals behaviour towards self and their families, hence making them self-reliant and initiative. From the business perspective, the hiring and promotion decision of Australian employees are based on merit or performance and their capability to do and they are valued for being competitive. Whereas in France, power distance and individualism go hand in hand which means superiors are privileged and employees are not comfortable expressing their views and opinions even if they have good knowledge or opinion (Fig 1 3). It is somewhat towards feminine culture which is indicated from its welfare system that has 35-hour work week, five weeks holidays per year and focus is on quality life instead of pay. They are more towards benefits and pay then power, top managers earn less even if they have power. Indonesia (Figure 1 and Figure 4) is relatively low in individualism and high on collectivism which means people here strongly prefer defined social framework. They look towards their superiors for everything and respect their decisions. This makes them more family and group oriented. The leaders avoid performance appraisals and feedback to avoid conflicts that reduces the field performance improvement(Rhodes, et al., 2008). Indonesians are on medium or low in gender egalitarianism who are more attracted to status and success symbol which means its not always material gains that motivates them. Position matters to them and they have concept of gengsi means outward appearances(Hofstede Insights, 2018). They believe in lifetime employment coupled with promotions that stops them from taking risk to be innovative(Rhodes, et al., 2008). Indonesia and France are more future oriented than Australia from average globe score means they have pragmatic culture. They believe in propensity to save and invest for future whereas Australia having normative culture who focus on achieving results than saving for future. In terms of uncertainty avoidance, Australians and Indonesians (with medium score Fig 1) accept the current norms, rules and structure whereas French people do not like surprises and they strongly believe in structure and planning. They want to be prepared with all the information that can impact their work(Hofstede Insights, 2018). Therefore, it is critical to consider all these differences in cultural dimensions that differs for each country and will be required to design our talent and performance management program that will help us to motivate and retain our current employee as well as to attract prospective employees. Institutional Factors National culture plays a significant role if we are to standardize our HR system, but there are many institutional factors that we need to consider too. The laws, rules and regulations are different for each country in terms of employment. Australia In the industries of Australia, the concept of talent management has been incorporated to focus on the fact that the right person is engaged in the right job. However, many institutes put their effort in attracting employees in the companies with hardly any focus on their development and sustenance. Being one of the critical factors that enhances the ability and production of the companies, the institutes must render greater attention in managing the talent of the employees (Nankervis et al. 2013). The companies in Australia have started incorporating HR practices in a way so that they do not suffer from talent risk and mitigation. They are trying to develop the skills in the employees by providing them with developmental opportunities through job training and various learning modules. Various laws framed after investigation of cases relating to employee exploitation by labour hire industries have been regulated in the nation. The companies human resource personnel are striving to adopt measures so that there is no accessorial liability under the Fair Work Act 2009. The parliamentary has been initiating measures to license regimes for the labour hiring industries so that they effectively engages, manages and develops the employees. Attracting employees with high potential for critical business roles is an ongoing challenge in the Australian scenario. The industries have not yet been able to invest in the retention and development of the key talents that they have that are affecting the competitive advantage (Lamba and Choudhary 2013). For managing the performance of the employees, offering flexible working arrangements like fixed time, appraisal means, leave and other factors needs incorporation. Hearing the requisites of employees would regulate effective manageme nt and render greater productivity. France According to the joint web survey conducted by Boston Consulting Group and European Association for Personnel Management, talent management was one of five HR challenges and a least important HR function for European organizations (Boston Consulting Group, 2007) in last decade (through 2015). Apart from this, the country has been reported to have a decrease in public employment that seeks planned reforms. The industries have been trying to reduce costs and improve the performance of the working force that includes the policy to replace 50% of the retiring staffs (Bouville and Alis 2014). The companies are seeking to reconstruct and reallocate measures. Voluntary departures with leave allowances are being encouraged to ensure the employee performances. In order to bring out the talents from the potential employees, leadership and guidance are being provided with greater concern. The HR strategies are getting reframed and the policies are being strategized in a way so that it also conn otes to the requirements of the employees. Even in France, the industries are modifying working conditions and equal opportunities for equal work measures that the ministries are presently being engaged with. According to report by the World Economic Forum, in national competitiveness, France ranks to be on a very superior position compared to most of the other countries. The employees of the firms find great satisfaction in their work, however, many of them has shown their disliking for the supervisors and managers. In case of the other countries, there is a prevailing parity in between the employees and their managers that renders greater production. The work ethics in the business environment of France is also stronger compared to the Australia and Indonesia. However, study on the leading economies by TNS Sofres in the year 2007 shows that France in unique in the middle management but the lower level work force in the companies are largely disengaged from their companies. The chief problem being a lack of parity between the leaders and the workers affects the management of employees that fails to assess their talents. Apart from that, the industrial factors in the nation have been posi tively influencing better performance and production as a whole. Indonesia There are few local factors to consider before we standardize our HR processes in Indonesian operations. One of the chief factors is the religious culture affecting employee management in the industries of Indonesia (Widyanti et al. 2015). Majority of the Indonesian population are Muslims and thus, there is a need to accommodate their religious Islam practices which are not applicable in our Australian and France operations, such as: Requirement to pray five times a day Avoidance of alcohol One month fasting and religious celebration during the month of Ramadan Indonesians are generally tolerant towards other religions but believe atheism incomprehensible and uncomfortable. Thus, it serves to be a major influence on the performance of employees. Considering the business competition in the country, the companies are far from reaching their standards for which they need to improve the performance of the employees. The country being a convergence of people with varying linguistic and diversifying culture, it becomes difficult for human resources to integrate a certain mindset into the millions of people (Chandrakumara 2013.). The prevalence of father figure attitude towards the managers serves to be the standard of authority. The managers often having a frustrated attitude fails to determine the reasons behind business problems. These are the factors on which the country needs to work upon. The companies lack coherency and mutual trust and understanding that results to poor performances of the employees. Conclusion Following my analysis above, it can be said that national culture certainly influences the work effort and commitment of an employee, either directly through cultural values and attitude or indirectly through its influence on mandatory global HR practices(Rhodes, et al., 2008). It does play critical role when we are looking to impose common HRM practices. Below are my observations and recommendations: The pay for performance that works for us in Australia will not work for France and Indonesia as the employees there take less initiative and risk to prove their capability. Hence, we must integrate methods in a way so that they have the will to work in any part of the countries. All the companies irrespective of their place of operation must have an integrated and set of rules that applies to all the employees. Equal opportunities must be given to all the employees with a relaxing work structure with low stress that would increase production. Various factors affect the employee performances and talent management in the organizations in the nations. Thus, the countries must engage and incorporate employee rules and regulations, backed by laws in such a way so that it does not affect the productivity as a whole. With the incorporation of integrated methods that would account to good employee relations and proper working environment, managing talent and performance of the employees would become easier that would increase the productivity irrespective of the operational countries of Australia, France and Indonesia. References: Bouville, G. and Alis, D., 2014. The effects of lean organizational practices on employees' attitudes and workers' health: evidence from France.The International Journal of Human Resource Management,25(21), pp.3016-3037. Chandrakumara, P.M.K., 2013. Human resources management practices in small and medium enterprises in two emerging economies in Asia: Indonesia and South Korea. Lamba, S. and Choudhary, N., 2013. Impact of HRM practices on organizational commitment of employees.International Journal of Advancements in Research Technology,2(4), pp.407-423. Nankervis, A.R., Baird, M., Coffey, J. and Shields, J., 2013. Human resource management: strategy and practice. Widyanti, A., Susanti, L., Sutalaksana, I.Z. and Muslim, K., 2015. Ethnic differences in Indonesian anthropometry data: Evidence from three different largest ethnics.International Journal of Industrial Ergonomics,47, pp.72-78.