martes, 17 de mayo de 2011

MIGRANT WORKERS AND EXPATRIATE ASSIGNMENTS



Migrant labor involves the movement of people from one country to another primarily for employment related reasons.
Migrant workers are used extensively for crop harvesting, For example Workers’ migration in China. Global crisis affects migrant workers China has about 242 million rural residents who work off the farm, and about 153 million of them are migrants who work outside their home towns, including tens of millions in export zones making cheap goods for the rest of the world (Buckley and Wills 2011).  

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Expatriate means to exile oneself from one's native country or cause another to go into. Expatriate assignment and overseas experience its becoming more important in a globalized World and they both are an excellent way of acquiring international expertise and knowledge, but are they the same?

The origin of the confusion is that they both involve an individual going abroad to live a prolonged period of time in a foreign country. Usually the objective is to gain some experience from the people, environment and culture of the other country. In general terms, they both are a common source for improving someones capability to face the new international challenges.

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The initiation of a EA is caused by a company who wants an employee to travel abroad to learn or teach in a foreign subsidiary, meanwhile the OE is a personal decision.
This means that the goals are inherently different.

In the first case is the company that establishes the goals, and they are set in a specific way to fit the company's perspective to send someone abroad and to make sure that the resources they are investing aren't a waste of money. In the OE since the individual is the one that initiates the travel he sets its own goals; meaning goals like "see the world," "try something different" (Inkson et al. 1999).

As to the funding of an OE, it is undertaken by the one who is making the travel overseas, as opposed to the EA, in which the company is the one that pays for all the expenses of the ex-pat. This gives much more flexibility to the OE since you are the one who controls your expenses, and can find a temporary job to gain more funding.
In a OE the career is "Boundaryless" meaning that this experience generates in the individual the skills of a general market, instead of the promotion and status improvements looked for in the EA.

The Creative Class are workers whose job is to create meaningful new forms, in which Employers see creativity as a channel for self-expression and job satisfaction in their employees.

Explain how easy is it for Colombian companies to employ expatriates locally? Give examples.

It is not easy for Colombian companies to employ expatriates locally, because although Colombia is a great country and has worked a lot to improve its old image about violence and drugs, it is not completely forgotten. In Colombia is not very common to employ expatriates, for example when you go to the U.S., let´s say new York, you can be aware of the quantity of people from other nationalities, in fact, there´s a Chinese neighborhood. In comparison to Colombia which the only Chinese people you can find is at the Chinese restaurants. 

Migrant workers are not very common within our culture, but in the future things may change thank to globalization. Maybe, we can find people from another regions due to violence of towns that are located near the forest with guerrilla, so those families go to the big cities looking for a save place to live and work, but desafortunately, they aren’t prepared for the fast and technological life of those big cities, and there´s where poverty and people without home start to grow.


 http://www.youtube.com/watch?v=e6lS8oO08k4&feature=related
Bibliography

Buckley C. and Wills K. (2011) China's Wen puts social stability at heart of economy.
Retrieved from March 20, 2011, from Reuters:
http://www.reuters.com/article/2011/02/27/us-china-economy-wen-
idUSTRE71Q07F20110227?pageNumber=2
Expatriate. (n.d.). Online Etymology Dictionary. Retrieved March 11, 2011, from
Dictionary.com website: http://dictionary.reference.com/browse/expatriate
Florida, R. (2002) The rise of the creative class. The Washington Monthly, 34(5), 15.
Retrieved from http://search.proquest.com/docview/213679959?accountid=45662
Institute for Public Policy Research (2004) Labour migration to the UK: an ippr
FactFile. 
Kram, K.E. (1985) Mentoring At Work, Scott, Foresman: Glenview.
Mezias, J.M and Scandura, T.A. (2005) A Needs-Driven Approach to Expatriate
Adjustment and Career Development: A Multiple Mentoring Perspective, Journal of
International Business Studies, Vol. 36, No. 5 (Sep.), pp. 519-538
Scandura, T.A. and Von Glinow, M.A. (1997) 'Development of the international
manager: the role of mentoring', Business and the Contemporar

The role of organizational culture in merging process




Organizational Culture is a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization. Integration processes had become a need into a globalized world, where companies need to expand themselves in order to compete with bigger competitors and gain expertise for customer satisfaction and recognition.

The most common integration strategies used are Mergers and Acquisitions (M&A), which its principal objective is the fusion or the acquisition of two companies in the same sector. In which its purpose is to increase the market presence in other countries and expand operations with a determined cost.

This is an important decision that companies have to take with a structured plan, analyzing all the variables involved before and after the integration process. The company has to decide if it would grow more with a partner or through a merger, than it would by its own. Sometimes, the organizations take this decision because they have internal conflicts that they would not resolve by themselves, and they need capital injection to survive in the market.


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In the integration process, merging implies the reconstruction of a new social identity, which is the real source of value creation in acquisitions, and in order to create value there must be economy of scale, economy of scope, Increased revenue or market share, Geographical or other diversification and Resource transfer.

The integration process means that two organizational integration variables are particularly relevant in the acquisition process. The first one is the motive for the acquisition, and the second one is the process of implementation, including the “acculturation” process, that occurs when the conflictive subgroups have Cultural differentiation and reject integration.

The success of a particular integration strategy depends primarily on the manager’s ability to reconcile the need for strategic interdependence between the two firms, The need for organizational autonomy, the existence of cultural fit and Managing the cultural differences.

In this process of integration the companies need to take into account the importance of transference of technology and knowledge because both companies are using learning process in order to achieve common goals. This is a necessary condition to the merger process. Taking into account that there are two Challenges to take into account the market situation and the Cultural Convergence.

What are the practical steps to minimize the feelings of uncertainty normally expected by employees, and also to facilitate the learning process to occur between the two groups of people in their process of cultural and behavioral integration?

The key factor to minimize the feelings of uncertainty normally expected by employees, and also to facilitate the learning process to occur between the two groups of people in their process of cultural and behavioral integration is Cultural Convergence, because sometimes is more effective if one company makes all the efforts in order to manage and address the cultural differences and not to try to achieve in ideal cultural fit that sometimes is impossible to reach.

This process take many steps an planning, however those conflicts can be observed in the post-merger stage and this is even more complex because the firms have already invested much money and resources and they cannot lose them. In the case of the banks, the German and American banks made all the possible efforts in order to reduce the cultural clashes to the minimum level.  

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In the case of th emerger of AVIANCA AND ACES, both companies have approximately 5.325 direct workers, which would enter in a cultural change process with Amauta, an International firm that is an expert in this kinds of matter. Korn Ferry Internacional is going to make an executive evaluation and its going to hire an outplacement firm to help to the reduction process and realocation of the personnel.
Finally, employees are the direct contact to the clients, and if is not possible to transmit the new corporate values to them, the effort of avianca and aces to became a good option within the market would be in vain.

Bibliography
Alzira S., Wayne H., and Gerald V. (2003) “Challenges and opportunities in mergres and
acquisitions: three international case studies – Deutsche Bank-Bankers Trust; British Petroleum-
Amoco; Ford-Volvo”, Journal of European Industrial Training, Vol. 27 Iss:6, p. 313-321.
Angwin, D. (2001) “Mergers and acquisitions across European borders: national perspectives on
pre-acquisition due diligence and the use of professional advisers”, Journal of World business, Vol.
36 No.1, p. 2-57.
Datta, D.K. and Grant, J.H. (1990), “Relationships between type of acquisition, the autonomy given
to the acquired firm, and acquisition process: an empirical analysis”, Journal of Management, Vol.
16, p. 29-44.
Elsaa, P.M. and Veiga, J.F. (1994), “Acculturation in acquired organizations: a force-field
perspective”, Human Relations, Vol. 47 No. 4.
Gitelson, G., Bing, J., Laroche, L (2001) Culture Shock, CMA Management.
Haspeslagh, P.C. and Jemison, D.B. (1991) Managing Acquisitions, The Free Press, New York.
Nahavandi, A. and Malekzadeh, A.R. (1998) “Acculturation in mergers and acquisitions”, Academy of
Management Review, Vol.13, p.79-90.
Nelson, D and Quick, J.C. (2009) Organizational culture. In Organisational Behavour: Science, the
real world and you. 

Organizational learning and managing change



 Organizational  learning 

Not all the people within an organization are trained for change and innovation,  that’s why the desire of change and the creation of strategies to motivate the employees has to start by the management innovation, using technological techniques, innovating processes, etc.


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Many countries and their organizations have been applying organizational learning in order to compete with others: India and China for example, had economies damaged by political or social conflicts in the past, however, they are implementing this kind of processes in the organizations and nowadays they are becoming powerful countries with strategies according their competitive advantages.

Learning organizations are defined by Pedler (1991) “as an organization which is in a continuous process of transformation through the learning of all members within and outside the organization”. We have to take into account that it needs the proper environment in order to obtain good outcomes. This involves some aspects such as new ideas from employees within the company, research of social framework, proper training of employees to be pro-actives and taking a deep feedback of the company and the sector.


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But this is not a concept that can be applied for one or several persons, even all the persons by their own because it would not work and would not bring the expected outcomes from change and learning. For this reason, there’s a need of interaction, communication and sharing of information in order to fit the strategies to the context.

A Learning organization is well interrelated with the concept of organizational culture, where the culture of the organizations influences many common behaviors and lifestyle of workers especially in the workplace. Goals’ setting is a Process of establishing desired results that guide and direct behavior, which leads to collective achievement and Increases work motivation and task performance. In this case, the Know-how may be considered as an asset, in which the development of new markets has made know-how a source of the competitive advantage of firms. 

Learning organizations are “experimented with new ways of conduction business in order to survive in turbulent, highly competitive markets” (Senge, 1990) and to obtain and sustain competitive advantage, organizations must enhance their learning capability and must be able to learn better and faster from their successes and failures.

The importance of learning in organizations is the knowledge creation which takes place when tacit knowledge is converted into explicit knowledge, spread throughout the organization and results in innovation in the form of a new product, services or systems.

According to Kavita Singh, what is the relationship between the learning organization and organizational culture ?

Learning organization is well interrelated with the concept of organizational culture, in which the culture of the organizations influences many common behaviors and lifestyle of workers specially in the workplace. For this reason, the degree of acceptance to change of one organization is going to depend of the strength of weakness of organizational culture and Pareek (2004) proposes some dimensions of the organizational culture that are related with learning organization directly:
-      Openess
-      Confrontation
-      Trust
-      Authenticity
-      Proactivity
-      Autonomy
-      Collaboration
-      Experimentation

Bibliography

Cooper, Cary L. The Blackwell Encyclopedia of Management. Blackwell Publishing, .
Blackwell Reference Online.  Retrieved from13 January 2011:
http://www.blackwellreference.com/public/book?id=g9780631233176_9780631233176
Learning Theories Knowledgebase (2011, January). Social Learning Theory (Bandura) at
Learning-Theories.com. Retrieved from January 12th, 2011:
http://www.learning-theories.com/social-learning-theory-bandura.html
Makridakis, S (1991) What can we learn from organisational failures ?, Long Range
Planning, 24(4), 115-126.
Nelson, D.L. & Quick, J.C. (2010) Organizational Behavior: Science, The Real World and
You. South-Western College Publication, 7th. Ed.
Nystrom, PC and WH Starbuck, (1984, Spring). To avoid organisational crisis, unlearn,
Organisational Dynamic@, 53-64.
Senge, P. (1998) Sharing Knowledge. At Society For Organizational Learning. Retrieved
from January 12th , 2011: http://www.solonline.org/res/kr/shareknow.html
Shukla, M (1994) CORPORATE FAILURES: Why Organisations Fail To Learn.
Productivity,  34(4), 629-639.
Teece, D. (1998) Capturing value from knowledge assets: The new economy, Markets for
know-how, and intangible assets. California Management Review. Vol 40 No 3. Spring
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http://apps.business.ualberta.ca/mlounsbury/techcom/readings/teece.pdf


Managing  Change


Change has become the norm in most organizations, in which there are some experiences that are common to American companies like plant closings, business failures, mergers and acquisitions, and downsizing. The Characteristics needed to succeed are Adaptiveness, Flexibility and Responsiveness.

In Organizational Change you can find planned and unplanned changes, in which Planned Changes  result from a deliberate decision to alter the organization and Unplanned Changes are imposed on the organization and is often unforeseen.

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“Organizational change involves moving from known to unknown” (Duck, 1993).

A Change Agent, is the individual or group who undertakes the task of introducing and managing a change in an organization. Change affects basic aspects of an organization like the Strategy, Technology and Structure. It also threatens the status quo by creating New problems and situations, Ambiguity and Uncertainty.

The Consequences of conflict might be positive or negative. The Positive consequences are that it Leads to new ideas, Stimulates creativity, Motivates change, Promotes organizational Vitality, Helps individuals and groups establish identities and Serves as a safety valve to indicate problem. On the other hand, Negative consequences are that it Diverts energy from work, Threatens psychological well- being, Wastes resources, Creates a negative climate, Breaks down group cohesión and that it can increase hostility and aggressive behaviors.

Managing change In an age of stability (1950-1970) may be analizad by the Model of Kurt Lewin (1947), in which there are three stages, which are Unfreezing, changing, and Refreezing.

After the 1970s, The crisis brought instability and required a new model Deal and Kennedy (1982) which says that  Culture was the most important factor accounting for success or failure in organizations. The Model of Beer (1970s Post-crisis), focuses on enforcing changed  ways of thinking, attitudes and behaving. In this way employees' roles, responsibilities and relationships are seen as key to bring about new situations.

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In the age of globalization, Change its all about competition, Geographic boundaries are evaporating, Traditional oligarchies are collapsing, Regulatory changes and privatization spawning new industries, Customers learning to expect more and Government policy changes.

In the Search for Competitive Advantage, you must take into account the Intellectual Capital, which is the organization’s collective knowledge and Organizational Capabilities.


Is it possible to change corporate culture? If so, how? 

Culture change is difficult and time consuming because "culture" is rooted in the collective history of an organization, and because so much of it is below the surface of awareness. In general, the process of culture change must include the following steps:
Uncover core values and beliefs. These may include stated values and goals, but they are also embedded in organizational metaphors, myths, and stories, and in the behaviors of members.
Acknowledge, respect, and discuss differences between core values and beliefs of different subcultures within the organization.
Look for incongruencies between conscious and unconscious beliefs and values and resolve by choosing those to which the organization wishes to commit. Establish new behavioral norms (and even new metaphor language) that clearly demonstrate desired values.
Repeat these steps over a long period of time. As new members enter the organization, assure that they are surrounded with clear messages about the culture they are entering. Reinforce desirable behavior.

It's clear that culture change is an ongoing process, so it’s very hard to identify organizations that have "completed" a successful culture change. We can, however, find examples of change-in-progress, in organizations that range from Harley-Davidson to the Pittsburgh Symphony. As we look at several examples, in this installment and the next, we will see some version of the process described above in each–even in organizations that did not originally set out to change their cultures!
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Levi-Strauss is a company that did engage in a purposeful culture change process. In 1985, a group of minority and women managers requested a meeting with the CEO, complaining of discrimination. The CEO convened a three-day facilitated retreat at which white, male managers engaged in intense discussions with minority and female managers. These discussions revealed that there were, indeed, hidden attitudes in the organization that were in conflict with its espoused values.
Since that time, Levi-Strauss has worked hard to generate cultural change. The company developed an "Aspiration Statement" including desired beliefs, attitudes, and behavior. The statement specifies the company’s commitment to communication, ethical management practices, employee empowerment, and recognition for those who contribute to the mission of the company.
Employees at all levels also participate in training sessions on leadership, diversity, and ethics. Employee evaluations are based partially on how well they support the "Aspiration Statement."
To underscore the fact that changing an organization’s culture can take a long time, we would note that at Levi-Strauss, change has not been entirely positive in the lowest tiers of the hierarchy. Increased teamwork and peer evaluation have demanded major adjustments in people’s expectations and behavior, and that has led to increased conflict at times.

Bibliography
  • Deal T. and Kennedy, A. (1982). A Corporate Cultures. Adison-Wesley.
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