TABLE OF CONTENTS

TABLE OF CONTENTS.............................................................................................III .....................................................................................................................................III LIST OF FIGURES.....................................................................................................IV LIST OF TABLES........................................................................................................V 1.0 INTRODUCTION....................................................................................................1 1.1 Research Background...........................................................................................1 1.2 Topic Justification................................................................................................1 1.3 Objectives of the study........................................................................................2 1.4 Significance of the study......................................................................................3 .......................................................................................................................................3 2.0 LITERATURE REVIEW.........................................................................................4 2.1Workforce diversity: ...........................................................................................4 2.1.2 Importance of Workforce Diversity..............................................................7 2.2 Cultural Dimensions ..........................................................................................12 2.2.1 Diversity Training:......................................................................................14 2.3 Human Resource Planning:..................................................................................8 2.3.1 Recruitment:..................................................................................................9 2.3.2 International Staffing/ Deployment:............................................................12 2.4 Motivation .........................................................................................................15 2.4.2 Herzbergs Theory:.....................................................................................18 2.4.3 Motivation Applied:....................................................................................19 2.5 Organizational Practices:....................................................................................20 2.5.1 IBM:............................................................................................................21 2.5.2 Nestle:..........................................................................................................24 2.5.3 Colgate-Palmolive:......................................................................................26 2.6 Critical Review:..................................................................................................28 3.0 RESEARCH METHDOLOGY..............................................................................38 3.1 Defining the problem and the research objectives:............................................38 3.2 Developing the Research Plan............................................................................40 3.2.1Determining Specific information needs .....................................................40 3.3 Implementing the Research Plan Collecting and analyzing the data.................42 3.4 Interpreting and Reporting the Findings............................................................42 3.5 Limitations of the Study.....................................................................................42 4.0 DATA ANALYSIS AND FINDINGS...................................................................42 5.0 CONCLUSION AND RECOMMENDATIONS...................................................55 5.1Conclusion:..........................................................................................................55 5.2 Recommendations: ............................................................................................56 REFERENCES.............................................................................................................57 BIBLIOGRAPHY........................................................................................................62 APPENDICES..............................................................................................................65 APPENDICE A: Strategic Human Resources.........................................................65 APPENDICE B: Differences between EEO/Affirmative Action and Diversity .....66

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LIST OF FIGURES
Page No Figure 2.1: Global Employee Selection Factors .21 Figure 2.2: Motivational Process.24 Figure 2.3: Maslows Hierarchy of Need....25 Figure 3.1: Marketing Research Process38 Figure 4.1: Diversity Management, Equal Employment Opportunity...... 43 Figure 4.2: Most productive Sources of Hiring.................................................46

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LIST OF TABLES
Page No Table 2-1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Table 2.6 Table 2.7 Table 3.1 Table 4.1 Table 4.2 Population of Countries..4 Continuum of Diversity Approach.12 Selected Countries on Hofstedes Cultural Dimensions13 Types of Recruitment Methods..19 Most effective means of hiring a diverse workforce..20 Employee Development Approaches.23 Women in IBM Workforce.31 Sources of Secondary Data.40 Dimensions of culture.44 Application of Maslows Motivation Theory..53

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Introduction

1.0 INTRODUCTION
1.1 Research Background
Globalization is the dominant driving force in the world economy. The downfall of communism, the demise of trade barriers, and the advancement of technology have altered the way organizations operate. In this age there is a free flow of capital, goods and services across borders making geographical boundaries meaningless. The world has become a global market where companies are in a cut throat competition with domestic and international competitors. In the past a global company was defined as one which sold its goods in the international market this definition has changed drastically. Now global companies have a manufacturing presence in numerous countries. Organizations are becoming aware of the fact that in order to satisfy global customers they have to get close to them and establish a strong local presence. This can be achieved by hiring a workforce which is similar to their customers. This not only creates an excellent interaction between customers and employees leading to better business for the organization but also a diverse workforce. Where globalization has opened new doors of opportunities for organizations it has brought many challenges as well. Amid these challenges is managing the global workforce. Recruitment, development, deployment, and motivation of the workforce have become challenging processes.

1.2 Topic Justification

Driven by global competition and accelerated by technological achievements organizations and their workforce are in an unparalleled transformation process. Globalization has changed the way organizations operate. Now when organizations are setup they not only consider their local environment but also the global environment. Due to this there is a trend towards smaller, independent operating units and smaller companies staffed by employees recruited from a world wide talent pool. Organizations are now focusing and striving for an empowered workforce. Driven by the demands of a global workforce and the central role these individuals play in the viability of the business the human resource function has become a core business activity. Achieving goals in the global marketplace hinges on people. Human resource 1

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technology is all about finding, developing, utilizing, maintaining, retaining and managing the right number and type of people for the organization.

1.3 Objectives of the study

The challenges of managing a global workforce were translated in to the following objectives.

1. To study the area of workforce diversity and determine its importance for the organization. 2. To illustrate the need for a strong corporate culture for cross- cultural communication among the workforce and the management. 3. To evaluate the methods required for effective recruitment, deployment and development of a global workforce. 4. To critically evaluate the practices considered necessary to motivate a global workforce. 5. To critically asses the practices that are currently being used by global organizations to manage their workforce.

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1.4 Significance of the study

Human Resource Management has always been a fascinating field. Dealing with employees, managing them and motivating them to work in the interest of the organization are interesting and changing areas. Globalization has affected Human Resource Management practices A decade ago there was a trend of foreign nationals coming to Pakistan to work mostly in the Multinationals and global companies. But this has temporarily halted, mainly due to the current unstable political conditions and law & order situation in Pakistan. However owing to its strategic geographical location and its strong position to act as a bridge between the East and the West, Pakistan is on the road towards becoming an international hub of business activity. A global and diverse workforce may not be an issue at the moment but it would be of great importance in the coming years. I will soon be stepping into the corporate world and the understanding of a global workforce and effective ways of managing it are essential for my success as a future Hr manager. This research will assist in understanding this phenomenon and how to deal with it effectively so that it contributes in the overall success of an organization.

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Literature Review

2.0 LITERATURE REVIEW

Throughout the world in the developed and industrialized countries such as those in the European Union, Japan and the United States, population growth has reduced significantly leading to a slower growth in the number of workers and consumers. On the other hand some countries especially Asian countries have witnessed an increase in the population growth rate. These have been illustrated in the table below. Table 2.1: Population of Countries, Country Population in Country Population in Millions. 1747 1437 420 297 295 282 260 231 187 150 Millions China 1318 India India 1132 China United States 302 United |States Indonesia 232 Indonesia Brazil 189 Pakistan Pakistan 169 Nigeria Bangladesh 149 Brazil Nigeria 144 Bangladesh Russia 142 Dem. Rep. Congo Japan 128 Philippines SOURCE: 2007 WORLD POPULATION DATA SHEET.

To take advantage of this growth Firms throughout the world have established operations, formed joint ventures or mergers in these countries. This had led to them employing a workforce coming from different backgrounds leading to a very diverse workforce. There are many factors affecting International HR management (Robert & John, 2004 pp.6-9) Legal and Political Factors Economic Factors Cultural Factors.

In this research cultural factors have be discussed and analyzed in details as they are the most important concern affecting international HR management.

2.1Workforce diversity:

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Workforce Diversity is on the increase in many organizations. According to the Census Bureau, nonwhites will represent more than one-third of the U.S. population by the year 2010 and close to half of the U.S. population by the year 2050. By the year 2005, the ethnic minority share of the workforce will likely reach 28 percent, up from 18 percent in 1980 and 22 percent in 1990. It is projected that the HispanicAmerican population will be the largest minority group in the U.S. by the year2010 (1999, Workplace Diversity ) The number of women in the workforce is also on the increase in organizations leading to a number of discrimination issues, as some organizations do not select women for certain kind of jobs. Apart from women the workforce has changed in the areas of age and religion as well. Organizations would have to make certain policies that cater to the needs of the aging workforce, people with disabilities and different religious beliefs. The broadest concept of Diversity is recognizing differences among people. However it is a term which has no specific definition as it is defined differently by different organizations. There is no single right answer to the question of what is diversity. According to Lee Gardenswartz and Anita Rowe, principals of Gardenswartz & Rowe, a California-based diversity consulting and training team, the trend seems to favor a broad definition, one that goes beyond the visible differences such as race, ethnicity, age, and gender. Diversity includes a number of important human characteristics that affect an individuals values and opportunities and perceptions of self and others at work. These primary characteristics include, but are not limited to age, ethnicity, gender, ability and race. They also include secondary characteristics such as: geographic location, military experience, work experience, income, religion, first language, organizational role and level, communication style, family status, work style, and education (The business case for Diversity). A narrow definition focusing only on a few visible characteristics, is not only too exclusive, but is also too closely linked to affirmative action and Equal Employment. Opportunity EEO became the law by the passing of the Civil Rights Act of 1964. It prohibits employers from making employment decisions based on an individuals race, color, religion, gender or national origin. It also requires that the granting of benefits of any federal financial assistance program may not be based on race, color and national origin (The business case for Diversity). 5

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Affirmative Action is government-initiated to comply with the law and is derived as a means to redress past discriminatory practices, with a goal of eliminating underrepresentation of women, minorities, and people with disabilities in the workplace (The business case for Diversity). On the other hand diversity is not about correcting a past imbalance, being a good corporate citizen, or even about the law. Diversity is about constructively using those things that make us different and unique that reaches far beyond generalized group descriptors (The business case for Diversity). Businesses and organizations have heavily relied on affirmative actions laws to ensure equal employment opportunities. The failure of this dependence upon legislation is that it doesn't address the full spectrum of diversity in the workplace. Although managing diversity can be confused with affirmative action and valuing differences, it really is in a class all by itself. Unlike affirmative action which assumes that the individual employees alone must adjust themselves to the organization, managing diversity takes responsibility and assumes that it is the manager's role to ensure that the organization is compatible with the individual employee (Roosevelt, 1991). Managers must be careful however, to make decisions based on need and not preference, convenience and/or actions of the past. Affirmative action is also external, focusing on recruitment of employees, upper mobility, and retention whereas managing diversity is more internal, narrowing in on the potential of the employee. Managing diversity on the other hand, is about helping the manager learn how to bring the potential of employees to the surface, thereby benefiting the manager and the organization. Finally, affirmative action is motivated by the law and social responsibility. Managing diversity, however, is a matter of business (Matti, 1998 pp. 161-173). As diversity grows in the workplace, organizations who are not up to speed with the issue of diversity and how to manage it, will eventually lose their ability to compete with the rest of the corporate world. According to R. Roosevelt Thomas, the next evolution of diversity is best referred to as valuing diversity. The main objectives of valuing diversity include awareness, education, and positive recognition of the differences among people in the workforce. Generally, valuing differences entail having a greater understanding and acceptance of people, their ethnic backgrounds, their gender, and religion. Managing diversity

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looks beyond these factors and instead focuses on how relationships among different people can be improved and understood to better the organization as a whole. While these three interventions build upon one another, when affirmative action is tied together with valuing and/or managing diversity, diversity often becomes tainted by negative perceptions of affirmative action and is therefore frequently misunderstood. This research paper focuses on this very aspect of not only valuing diversity but to manage it effectively as well.

2.1.2 Importance of Workforce Diversity Following are the few key factors that make workforce diversity important to organizations. As a Social Responsibility: Workforce diversity represents an organizations role towards corporate and social responsibility (McInnes, 2000). As an Economic Payback: Many groups of people who have been excluded from workplaces are consequently reliant on tax-supported social service programs. Diversifying the workforce, particularly through initiatives such as welfare-to-work, can effectively turn tax users into tax payers (McInnes, 2000). As a Resource Imperative: Todays labor pool is dramatically different than in the past. It is no longer homogenous but consists of people from a vast array of backgrounds and life experiences (McInnes, 2000). One of the biggest budget items in organizations is the amount they spend on human resources in the form of salaries, benefits, training, development and recruitment. In order to get a healthy return on investment (ROI) in human capital and maximize competitive advantage, it is important to recognize that the workforce will grow in the number of women, people of color and immigrants

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each year. An environment where all employees feel included and valued yields greater commitment and motivation. It also means fewer resources spent on training, turnover and grievances. As a Legal Requirement: Non-compliance with Equal Employment Opportunity or Affirmative Action legislation can result in fines and/or loss of contracts with government agencies. It is mandatory for companies to discourage discriminatory practices (McInnes, 2000). As a Marketing Strategy: Customer bases are becoming even more diverse than the workforce. Buying power, particularly in todays global economy, is represented by people from all walks of life ethnicities, races, ages, abilities, genders, sexual orientations, etc. (McInnes, 2000). To ensure that the products and services being offered by the organization appeals to diverse customer base, it needs to have a diverse workforce. Employees who understand the needs and backgrounds of the diverse customer base are more likely to satisfy them. As this diverse customer base is here to stay organizations can not do without recruiting and retaining a staff that reflects the diversity of the marketplace. As a Business Communications Strategy: The workforce and the product and services markets are becoming more and more diverse. Having a diverse workforce would help in the external and internal communication process of the organization. As mentioned above a diverse workforce would be able to communicate better with a diverse customer base (McInnes, 2000). As a Capacity-building Strategy: Organizations that prosper have the capacity to effectively solve problems, rapidly adapt to new situations, readily identify new opportunities and quickly capitalize on them. This capacity can be measured by the range of talent, experience, knowledge, insight, and imagination available in their workforces (McInnes, 2000). Employees from varied backgrounds can bring different perspectives, ideas and solutions, as well as devise new products and services, challenge accepted views and generate a

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dynamic synergy that may yield new niches for business opportunity. According to Dr. Santiago Rodriguez, Director of Diversity for Microsoft, true diversity is exemplified by companies that hire people who are different knowing and valuing that they will change the way you do business. Flexibility ensures survival: Diversity is a training ground that requires hard work, commitment to business ideals, and an ability to learn how to handle change by adapting to new situations and learn from people who are different from us. Because change is the only certainty ahead, making adaptations required by diversity keeps an organization flexible and welldeveloped, strengthening the organizations ability to respond to changing environment (McInnes, 2000). Competitive Advantage: It is clear that companies that diversify their workforces will have a distinct competitive advantage over those that dont. Further, it is clear that the greatest benefits of workforce diversity will be experienced (McInnes, 2000). Managing Diversity in the workplace is more than just an acquired skill, it is "a way of thinking" (Roosevelt, 1991). It involves creating an environment that allows all employees to contribute to organizational goals and experience personal growth. The key is to help employees reach their full potential by creating an environment that will allow them to be motivated and productive and ultimately, be beneficial for the organization. There are a few challenges that HRM departments face while developing strategies to managing diversity. In the past one challenge was to convince top level management that diversity was a global issue but now as the importance of workforce diversity has been acknowledge it is no more a challenge., however , leaders of businesses and organizations are concerned that diversity initiatives are too expensive, upsets productivity, and causes disruption in the workplace (Mathewes, 1998). Another challenge that HRM departments face is how to transform the workforce that exists today, mainly comprising of females, immigrants, minorities, and older workers into a more skilled, productive and adaptable resource. HRM departments have also been

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concerned with their approach towards the changing workplace. They don't know whether to continue treating employees as "money-makers" or to start treating them as valuable assets to the organization. HRM departments must work collaboratively with top executives and line managers to develop a strategic plan that will meet diversity challenges. In working with top executives, HRM can look at the organizations mission and goals look at strategic plans for the future and incorporate a diversity plan that identifies the organizational culture and workforce in relation to gender, race, age, skills and knowledge. This topdown approach to workforce planning helps the organization to define goals and objectives and translates them into HRM objectives to determine needs. This, results in defining personnel and human resource roles and devises strategies for meeting these goals, and assesses whether these goals have been met. In addition, working closely with line managers, HRM can integrate employee profiles, goals, skills/competencies into the organizational culture, enabling HRM to hire workers with the right qualifications, for the right jobs, and in the right locations (Mathews, 1998,). This bottom-up approach to workforce planning identifies information regarding employees by analyzing the skills, retirements, turnover and retention of employees, while considering the balance of social representation and affirmative action. Diversity factors of age culture religion gender etc will come into play in all the HR processes and have been discussed in the coming text. Organizations can approach diversity management from different perspectives. It can be seen from the figure that the continuum can run from resistance to creation of an inclusive diversity culture (Robert & John, 2004 pp.121-122).

Table 2.2: Continuum of Diversity Approaches

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Resistance Viewpoint Diversity not important and does not effect management. Action Resistance to Change Denial of problems Diversity training Affirmative Action Compliance Focus on Protective groups Consequences Protect Status Quo Increased possible legal liabilities Discrimination addressed through internal responses. Minimize legal exposure Fairness Diversity creates conflicts and problems. AccessLegitimacy Diversity provides opportunities for employers and organizations Build Diversity Acceptance culture. Reduces conflicts in Multicultural workforce. All employees are valuable to recruit and retain. Acceptance leads to internal problem solving.

Literature Review
Diversity Culture Diversity culture permeates organizations

Proactive efforts on diversity. Employees are seen as resources.

Effective relations among all employees. Diversity access through organizations.

SOURCE: 2004 HUMAN RESOURCE MANAGEMENT One of the things and stands out in a diverse workforce is the differences in cultures. A global workforce consists of people belonging to different cultures who have different values and beliefs. The corporate culture serves the important purpose of uniting employees on a common platform. Organizational culture is a pattern of basic assumptions that are considered valid and that are taught to new members as the way to think, perceive and feel in the organization.(Nelson & James, 1994). Culture pervades and radiates meaning into every aspect of our lives. Its impact on lives and work is huge. Hence it is important for the organizations to understand different cultural landscapes around the world and how they affect the way business is conducted. According to Hodgetts culture is acquired knowledge that people use to interpret experiences and generate social behavior. This Knowledge forms values, creates attitudes and influences behavior (Hodgetts & Luthans, 2003 p.108). In order to understand the behavior of people belonging to different cultures George Hofstede conducted a research. Data was gathered from over 116,000 respondents 11

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from over 70 countries around the world, making it the largest organizational study ever conducted (Hodgetts & Luthans, 2003). All the respondents were employees of IBM from all over the world. The results of the research have been illustrated in the table below. Although this research was not recently conducted but it still has bearing on cultural dimensions and the most authentic study conducted yet. Table 2.3: Selected Countries on Hofstedes Cultural Dimensions
Country Power distance Brazil Canada France UK India Israel Japan Mexico Netherlands South Africa South Korea US 14 39 15 42 10 52 33 5 40 35 27 38 26 4 10 3 21 19 22 32 4 16 43 1 Femininity 27 34 35 9 20 29 1 6 51 13 41 15 Avoidance 21 41 10 47 45 19 7 18 35 39 16 43 Orientation 6 20 N/A 18 7 N/A 4 N/A 10 N/A 5 17 Individualism Masculinity/ Uncertainty Long \Term

SOURCE: 2004 HUMAN RESOURCE MANEGEMENT

2.2 Cultural Dimensions

The study focused on the dimensions of culture. These are as follows Power Distance: Power distance is the extent to which less powerful members of organization accept that power is distributed equally (Hofstede & Michael, 1984). As power distance score increases there is less status and authority difference between supervisors and subordinates. Countries such as Canada, USA and France are countries with low power distances and employees are involved in the decision making process. On the other hand countries like South Korea, India and Mexico where high Power distances exist, employees tend to follow orders as matter of procedure. It is cleat that reactions to management authority differ among cultures hence organization would have to apply a management style which would be accepted by every employee. Individualism: 12

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It is the extent to which people prefer working as a member of a group or individually (Hodgetts & Luthans, 2003 p.117). There is a very clear difference between Asian and the countries of the west. Asian countries are more group oriented where as Western countries such as the United Sates are more individualistic. Masculinity/Femininity: This cultural dimension refers to the degree to which Masculine values prevail over Feminine values (Hodgetts & Luthans, 2003 p.117). Masculine values identified by Hofstede were assertiveness, performance orientation, money and success. Feminine values were quality of life, personal relationships and caring. It clearly shows in the study that different countries had different values. Uncertainty Avoidance: It is the extent to which people feel threatened by ambiguous situations, and have created beliefs and institutions that try to avoid these (Hodgetts & Luthans, 2003 p.117). Countries focusing on uncertainty avoidance such as Japan and France tend to be more resistant to change. Where as in United States and Britain employees prefer unstructured situations and accept risks. Long term Orientation: This dimension was introduced by Hofstede a decade after identifying the above dimensions. It focuses on the short term and long term values people have. Short term values focus the past. These include respecting tradition and fulfilling social obligations where as Long term values include Thrift and persistence. Short term orientation was present in United States and France. Long term orientation was found in Japan and India It is clear from Hofstede study that cultural dimensions differ from country to country. Therefore, HR activities appropriate for employees of one country would not be appropriate for the employees of another country due to cultural differences. Thus organization would need to have a strong corporate culture that promotes equity. A strong corporate culture would unify organizations workforce, enhance communications and enable global teams to work together to achieve a single 13

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common purpose. The first step towards having a strong corporate culture is the acceptance of diversity by the employees. This can be achieved through diversity training. The global HR manager plays a pivotal role in developing, protecting and communicating the corporate culture. It occurs through every step of the process, from developing policies that can be embraced by all members of the organization to communicating corporate values at the recruiting and hiring stages, as well as to training and performance management that maintains consistent corporate messages (|Michael, 1997). 2.2.1 Diversity Training: Diversity training has three components Legal awareness: Legal awareness is done in order to minimize discrimination and harassments lawsuits (Robert & John, 2004, p 125.). It is a very limited approach to diversity as discussed earlier diversity goes far beyond legal limitations. Cultural Awareness: Cultural awareness focuses on building an understanding of different cultures among employees. Cultural training assists the employees and the management to accept the differences in people with widely varying cultural backgrounds (Robert & John, 2004, p.125).

Sensitivity Training: Sensitivity training is the most difficult as it aims to sensitize people to the differences among them and how their words and behavior are seen by others (Robert & John, 2004, p.125).

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It is a common belief that usually diversity training does not work and are an unnecessary expenditure by the organizations. The two most common complaints about diversity training are Diversity training tends to draw attention to differences, building walls rather then breaking them down. Much of the content used in diversity training is viewed as Politically Correct which blames majority individuals white people in mot cases for past wrongs. These problems can be overcome by implementing the diversity training programs effectively. Diversity training should focus on behaviors rather then just attitudes and beliefs (Robert & John, 2004, p.125).

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One of the most important aspects of managing a diverse global workforce is their recruitment, retention deployment and development. As a company's most expensive assets is its human capital, the human resources of the organization. The management of human resources focuses on: (Global Human Resources Management and Organizational Development) Recruitment and selection of employees who can succeed at their jobs and who will stay with the organization. Making sure that employee's abilities are optimally nurtured and developed so that the company can receive an optimal return on the investment made in these employees. Organizational structure influences all HR management functions from recruitment to retirement. Thus these process have to be implemented keeping in mind the over all strategy, mission and goals of the organization (Cascio, 2003, p.630).

2.3 Human Resource Planning:

HR mangers need to analyze the domestic and international labour market to identify the people with the right set of skills as required by the organizations. They also have to estimate the supply of people with the necessary skills that will be required by the organizations in the future (Casio ,1993).

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2.3.1 Recruitment: Global companies can follow 3 strategies for recruiting employees. Expatriates: Expatriates are employees employed form the companys parent country but assigned to operations in other countries. Expatriates are a major source of increasing organizations global capabilities. Experienced Expatriates can provide a pool of talent that can be tapped as the organization expand its operation broadly into even more countries (Robert & John, 2004, p.11).

Host country Nationals Host country employees are employees hired from the country where the operations are located. This is a very important strategy as it conveys the message to the people of the host country that the company cares for them by providing them employment opportunities. As discussed in the importance of a diverse workforce they are familiar with the customer base culture and customs and would be able to build a better relationship with them. They provide a cost advantage for the organization of the host country is under developed or a developing country due to the differences in compensation levels (Robert & John, 2004, p.12).

Third Country Nationals: Third country nationals are employees who are citizens of one country, working in a second country, employed by the organization headquarter in a third country (Robert & John, 2004, p.12). This strategy seeks the best person for the job regardless of nationality. This is the most suitable strategy as it is aligned with what a global organization is but it has its setbacks. Secondly, Managers will not think outside their units, let alone countries, when there is a

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job opening or finding the expertise to solve a specific problem, such as poor market response to a new consumer product or dysfunctional work relationships that are due to cross-cultural ignorance.

Organizations can use either Internal or external recruiting sources. These sources have been identified in the table below. For strategic recruitment stages Refer Appendix B: Table 2.4: Types of Recruitment Methods
Internal Recruitment Organizational Databases Job posting Promotions and Transfers Employee Referrals External Recruitment College and University Recruiting School Recruiting Labor Unions Employment Agencies and Search Firms Competitive Sources Media Sources

SOURCE: 2004 HUMAN RESOURCE MANAGEMENT

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In order to find the Hiring Sources of multinationals, a research of over 200 multinational companies was conducted by Career X roads in 2006. The table below depicts the sources most commonly used in order to hire a diverse workforce. Table 2.5: Most effective means of hiring a diverse workforce.
Very Affinity Groups Niche (Diversity) Job Boards Major Job Boards Diversity Career Fairs Dedicated Diversity Recruiters Dedicated Diversity Sources Placement Agencies Employee Referrals 3% 11% 15% 23% 32 46 26 14 24 6 6% 3% 9 3 79 6% 11% 3% 28% 11% 6% 43 34 15 20 40 6 3 3 70 Productive 9% 3% Productive 18% 18% Somewhat Productive 21 24 Not Productive 21 41 Not Applicable 32 15

SOURCE: SOURCES OF HIRE, 2006 CROSS X ROADS SRUVEY.

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The internet has becomes one of the major sources of recruiting employees form all over the world. Organizations now provide candidates the facility to submit CVs online. Global organizations employ employees who understand the business and who are able to see where the business is going globally and the cultures that need to be bridged, people who are able to manage conflict and change.

2.3.2 International Staffing/ Deployment: Once the employees have been recruited the next step for the organization is to deploy them wherever there skills are needed. Staffing decisions are based on the type of global assignments. The figure shows there are different type of global assignment acquiring intercultural capabilities (Robert & John, 2004).

Figure 2.1 Global Employee Selection Factors ( Robert & John, 2004)

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There are two assumptions that organizations should not make when deploying employees. Do not assume that a job requires the same skills form one location to another. Do not underestimate the effect of the local culture and physical environment on the candidates. In the past organizations had relied on a headquarters-subsidiary structure and the traditional expatriate model of human resource staffing where the parent company nationals held most positions of authority. This arrangement was adequate in yesterday's international organization because leadership, decision-making authority, and organizational power flowed from the parent site to the foreign subsidiaries. Today, however, new technologies, new markets, innovation, and new talent no longer solely emanate from headquarters but are found cross-nationally, making the expatriate model obsolete (Taylor & Beechler, 1996, pp. 959-985). The cost of deploying an expatriate has become excessive. One Merck and Co., Inc., executive estimated that it was three times more expensive to have an expatriate than a local national in any given job. Now organizations are working on alternate ways to get the right people to where the work is on an as-needed basis. The key innovation is that organizations are making distinctions between when it is necessary to physically move a person to a particular location and when the person's skills can be delivered through other means. Permanent transfers are no longer seen as the only method for delivering certain services to parts of the organization, One of the alternate ways of deploying employees is through virtual solutions. Virtual solutions provide frequent, brief interactive interactions, with only a little cultural component to the interaction, or a wide sweep of the organization to search for or communicate technical details or information. These include use of all forms of the Internet and intranets, videoconferencing, electronic expert systems, and electronic databases coupled with user-friendly front-end systems. The chief advantages to this strategy are the low cost of communication and the uncoupling of real time from virtual time. This approach has most potential for managing and 13

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developing the global workforce. Internet and intranets, including E-mail, are the most democratic form of overseas deployment, allowing communication among employees regardless of organizational level (Karen& Ernest, 1998) Development of the employees is very essential as it contributes in their life long learning. The table below illustrates some of the development approaches.

Table 2.6: Employee Development Approaches

Job- Site Methods Off-side Methods

Coaching Committee Assignment /Meetings Job Rotation Assistance-to Positions Online Development Corporate University

Classroom courses and degrees Human Relations Training Simulations Sabbaticals and leave of absence

SOURCE: 2004 HUMAN RESOURCE MANAGEMENT Job- site Methods: Job site development methods are used to develop employees and management skills on the job. Off-Site Methods: Off Site development gives individuals opportunities to get away form the job and solely concentrate on what is to be learned.

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2.4 Motivation
Once organizations have recruited the right set of employees, motivation will be the key factor to retain them. Motivation is the psychological processes through which unsatisfied wants or needs lead to drivers that are aimed at goals or incentives. (Hodgetts & Luthans, 2003 p.379). The figure shows the motivational process.

Unsatisfied Need

Drive toward goal to satisfy need

Attainment of goal (need Satisfaction)

Figure 2.2: Motivational Process (Hodgetts & Luthans, 2003)

As cultural differences influence every HR process, motivation is no exception. Considerable research has been done on motivation of human resources in a large number of countries based on two assumptions. Universalist Assumption: The Universalist assumption assumes that the motivational process is universal all people are motivated by to pursue goal they value. However these specific goals will be influenced by culture. For e.g. for Americans the motivational factor could be money but for the Japanese it could be respect (Hodgetts & Luthans, 2003 p.379) The Assumption on content and process: Motivational theories are of two types (Hodgetts & Luthans, 2003 p.381). Content theories: Content theories explain work motivation in terms of what arouses., energizes or initiates employees behavior.

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Process theories explain wok motivation, by how employee behavior is initiated redirected and halted. This research paper focuses on Content theories as they are useful in explaining motivation of international personnel. Maslow Hierarchy of needs is the one of the most famous content theories created by Abraham Maslow. This theory helps in the understanding of motivational practices through out the world (Hodgetts & Luthans, 2003 p.381). 2.4.1 Maslows Theory: Maslows theory states that everyone has five basic needs. Beginning from the very basic Physiological needs and ascending to self actualization needs. The following figure illustrates the needs hierarchy.

Self Self actualization actualization

Esteem Needs

Social Needs

Safety Needs

Physiological needs

Figure 2.3: Maslows Hierarchy of Needs

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Physiological Needs: Physiological needs are the most basic needs of human consisting of food, cloth shelter and other physical needs. These needs are satisfied through wages and salaries paid by the organization (Hodgetts & Luthans, 2003 p.381).

Safety Needs: Safety needs include physical as well as job security. These needs are satisfied by organization through safety program, unemployment/ retirement plans and medical insurances (Hodgetts & Luthans, 2003 p.381).

Social Needs: Social needs are related with a persons sense of belonging. It is the need to interact with others and be part of a group. These needs are satisfies through interaction during the course of the job as well as through informal groups in the organization (Hodgetts & Luthans, 2003 p.381).

Esteem Needs: Esteem needs are the persons need for power and status. A person wants to be appreciated and recognized for his work .These needs are satisfied through promotions, feedback from top management and awards (Hodgetts & Luthans, 2003 p.381).

Self Actualization Needs: Self Actualization needs are desires to reach ones full potential by becoming what one is capable of becoming. This is the highest level of need and is fulfilled by mastering the environment and attaining achievable goals (Hodgetts & Luthans, 2003 p.381).

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Maslows theory assumed that needs have a certain hierarchy. Starting from Physiological needs and ending at the Self actualization state. This theory can be applied to international motivation with only a few minor changes. In the research done by Harie and Ghiselli which examined the impact of cultural differences on employee motivation it was found that employee needs didnt necessarily follow the specific hierarchy defined by Maslow (Harie & Edwin,1966). The research also indicated that although these needs were important to employees and management throughout the world but the level of satisfaction greatly varied. And for this very reason organization would be wise to examine their motivational practices in terms of country or geographical clusters. Where they can slightly adjust their policies according to the cultural environment. Another theory which greatly assists the understanding of international motivation is Two Factor Theory of Motivation formulated by Herzberg and his colleagues.

2.4.2 Herzbergs Theory: Herzbergs theory identified two set of factors that had an impact on job satisfaction. These are Motivators: Motivators are the job content factors; these include achievement, recognition, responsibility, advancement and the work itself (Hodgetts & Luthans, 2003 p.385). Hygiene Factors: Hygiene factors are the Job content variables namely; salary, interpersonal relations, technical supervision, working conditions, administration and company policies (Hodgetts & Luthans, 2003 p.385). These two factors relate to employee satisfaction. The theory states that motivators are the only factors which provide satisfaction. If hygiene factors are not provided their will be dissatisfaction However, if they are provided there may not be dissatisfaction, but satisfaction my not also occur (Hodgetts & Luthans, 2003 p.385). 18

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Hence the sole purpose of Hygiene factors is not preventing dissatisfaction. For the purpose of motivating human resources factors such recognition, achievement and advancement must be used. According to the research done by Goerge Hines; which surveyed 218 middle managers and 196 salaried employees using ratings of 12 job factors and over all satisfaction. It was concluded in the research that Herzberg Model appears to have validity across occupational levels. The results shown in the table below will support this statement

2.4.3 Motivation Applied: Motivation is applied in three areas. These are as follows. Job design Job content, the methods that are used on the job and the way the job relates to the organization. Due to cultural differences the same type of work my have a different impact on the motivation of human resources in various part of the world. Quality of work life differs from country to country as discussed earlier in the dimension of culture that different countries have different work environments. (Hodgetts & Luthans, 2003 pp.396-397). For example Assembly line work would be welcomed by Japanese who have strong uncertainty avoidance. Assembly line works requires no original thinking by the employees and there are specific procedures for performing the job. But the same Assembly line work would lead to high level of satisfaction or motivation for the American employees has they have low uncertainty avoidance and like jobs which have a certain risk involved. All job designs tend to reflect the cultural values of the country, organization would have to keep this factor in mind when defining job designs

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Chapter 2 Work Centrality:

Literature Review

Work centrality is the importance of work in an individuals life relative to other areas of interest (Hodgetts & Luthans, 2003 p.398). This provides essential information on how to motivate the global workforce. But there can be misconception regarding the value of work. It has been found that Japanese like to work long hours but this is not necessarily due to their devotion to work but of the fact that living cost in Japan are very high and people dont miss a chance to work extra hours to earn money. Reward Systems: Rewards are commonly used by Organization to motivate Personnel. They can be Financial in nature like salary raises, bonuses and tock options. Or they can be non financial in nature like recognition and feedback. However there are significant differences between the reward systems that work in each country. For example Research shows that Swedish workers with superior performance often prefer a reward of time off rather then financial incentives. On the other hand as discussed earlier as well Japanese Worker while high performing tend to opt for financial incentives (Susan & Jean. 1997). According to a 2005 survey of 90 multinationals by Mercer Human Resource Consulting Eighty-five percent of multinationals have a global pay strategy in place, and the remaining 15 percent plan to introduce one by 2007,. These global strategies consistently include policies on positioning pay relative to the market, short-term and long-term incentive design and methodologies for job grading. More than half incorporate fixed guidelines (Hansen, 2006).

2.5 Organizational Practices:

Following are the policies of some of the major multinational in the world to manage global workforce.

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2.5.1 IBM: Workforce Diversity: IBM has operations in 170 countries of the world. They have created an innovative and strategic global framework for this new era of diversity. IBM understands the importance of diversity in its many dimensions. It is much more than good social policy for IBM. An international company with local management, IBM addresses diversity issues that are representative of local priorities and experience. Issues vary across regions, as well as from country to country. For example, in Europe, Latin America, the Middle East, and Africa, IBM's policies and practices are mindful of gender, people with disabilities, and the growing awareness of ethnic minorities. In Asia Pacific countries, IBM is putting increased focus on issues related to gender, disability, and respecting and valuing differences among countries and regions. Their focus on the advancement of women and the diversity of leadership team helps ensure that all employees have an opportunity to develop into successful leaders. Attention to cultural awareness and to the inclusion of people with disabilities in the workplace helps provide an environment free of discrimination and harassment (Global Diversity). Corporate Culture: IBM puts a lot of energy into managing employee behavior through creating a strong culture (2007, managing your corporate culture). No matter where IBM employees are they are aware of what the organization stands for. This is done through their new-employee program Your IBM. It sets the stage by providing new hires with a learning continuum and action plan to help them gain the knowledge needed to understand IBM its culture ( Learning and Opportunity). Diversity Training:

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IBM conducts training sessions in a variety of diversity-related subject areas. For example, "Shades of Blue" is a learning experience for managers to develop competencies for engaging in business across cultures. Consisting of online learning followed by a two-day face-to-face workshop, the program combines presentations, group discussions, role playing and videos to build understanding and skills for multicultural engagement. IBM also offers "Quick Views" and "Learning Clusters" online programs to educate managers on the issues of diversity (Workforce Diversity). Recruitment/Development: IBM recruits employees from all over the world and does not take into account the race, gender, religion, culture etc of people. It is the skills and potential of the people they are interested in. IBM has structured programs to help employees develop the skills that are most in demand in the marketplace, giving them IBM a competitive advantage. But this isn't random, nice-to-have self-improvement. These investments are supported by a methodology designed to move people along a development continuum, so that as demand declines for certain skills in yesterday's technologies, applications or platforms, they focus and invest in the market-valued skills employees will need now and in the future. IBM's internal redeployment processes are designed to make the most of the industry's top talent by reducing potentially wasteful loss of skilled employees whose talents are often needed elsewhere in IBM. These processes also help manage the inevitable changes that take place in a services business as clients renegotiate their requirements (Learning and Opportunity). Table 2.7: Women in IBM Workforce

Americas

Asia

Europe, Middle East and Africa 25.4% 18.5%

Total Worldwide

Total Women Women Managers

31.0% 28.2%

24.9% 18.2%

28.0% 23.5%

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Motivation: IBM responds to the needs of its employees and tries to satisfy them it observed a significant increase in the number of women in its workforce and made program catering especially to their needs. IBM observed that women like other employees; usually want to advance in their careers. At the same time, they want to make sure that, while they're working, their children are receiving good care. This was made possible by the introduction of Child care and Dependent care programs. As childcare and eldercare became increasingly important to IBMers, the company responded by creating the Global Work/Life Fund with a five-year, $50 million commitment. It was the first fund of its type to address employee issues on a global basis (Employee well being). IBM also has many rewards and recognition programs from managerdetermined recognition awards to technical recognition awards to peer awards.IBM sloe has a global recognition program which includes cash rewards as well as merchandise. Award values vary by country, depending on currency exchange rates and local customs. IBM also places a lot of emphasis on employee health an well being (Compensation and Benefits) IBM being a technology company has many employees who work form home without ever coming to the organization (Dittmann, 2005). For these employees motivational and other HR management practices would be different as they have completely different needs and requirements.

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Chapter 2 2.5.2 Nestle:

Literature Review

Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today the world's biggest food and beverage company. Sales for 2006 were CHF 98.5 bn, with a net profit of CHF 9 bn. Employ around 265,000 people and have factories or operations in almost every country in the world. Switzerland is home to Nestl's Swiss subsidiary, its international headquarters and the registered office of Nestl's holding company (Nestle Insight: business Principles). Diversity Management: Nestle respect all cultures. Therefore, Nestl embraces cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age. Nestl does not regard its Swiss headquarters as the center of the universe. Decentralization is a basic principle of Nestl. Their policy is to adapt as much as possible to regional circumstances, mentalities and situations.. Policies and decisions concerning personnel, marketing and products are largely determined locally. This policy creates stronger motivation for Nestl's executives and employees and a greater sense of identification with Nestl's business. It is not Nestl's policy to generate most of its sales in Switzerland, supplemented by a few satellite subsidiaries abroad. Nestl strives to be an "insider" in every country in which it operates, not an "outsider."(Nestle Insight: business Principles).

Corporate Culture Nestls Corporate culture is based on a set of fundamental principles which are strongly influenced by the values of our home country. Switzerland; respect for the individual; understanding different cultures and traditions global thinking but local action; favoring decentralization and networking; being pragmatic rather than dogmatic; being committed to work and quality. Nestl prefers the long-term perspective to short- term thinking (Nestle passion to win).

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Recruitment/Development: Nestls criteria for recruitment are based on professional skills exclusively not on a person's passport, ethnic or national origin. ( Passion to win). Interested candidate can submit their CVs online. Nestle offers progressive development through on-going training throughout an employees career. Training possibilities are available to all staff. Nestl recently introduced elearning as well, a web-based programme for self development. According to Nestle When joining Nestl, your training is not over - it is only just the beginning! (Passion to win).

Diversity Training: Information regarding Diversity training at Nestle could not be found.

Motivation: To improve people skills ad attitudes Nestle also spends large sums of money on motivational workshops where executives down the line relearn management techniques and are taught to become better human beings. Often, entertainment is combined with education as an added motivator (Sarkar 2000). Nestl also cares for the health of their employees. Nestl Singapore launched an integrated and comprehensive Internal Wellness Nestl program in 2003 to promote awareness and impart necessary life-skills to strive for a healthy work-life for all staff. Nestl provides a comprehensive benefits program, from traditional healthcare and pension plans to more contemporary options that reflect the changing needs of today's employees, such as wellness

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and alternative medicine, an allowance for corrective laser eye surgery and workplace flexibility() 2.5.3 Colgate-Palmolive: Colgate-Palmolive is a New York-based company operating in 170 countries. It receives 70 percent of its 7 billion Dollar revenue from overseas markets.

Managing Diversity: Colgate Palmolive has grappled with the challenge of translating its USbased agenda of valuing diversity to the international arena. The concept of equal treatment and opportunity across race, gender and disability does not readily translate into other cultures where the racial mix is rather homogenous (for example, Japan), or the gender divisions are clear and rigid (for example, in Saudi Arabia). Through the office of the director of global employee relations, the company has redefined its diversity principles globally. ColgatePalmolive Company frames its perspective by talking about respect for all of its workers. The company addresses this mission in a program called "Valuing Colgate People," in which all managers participate. Although respecting other cultures was a central element of this policy, the company made a conscious decision not to override the essential policies of banning discrimination and sexual harassment (Ozbilgin, 2005).

Corporate Culture: Colgate Palmolive has three values, Caring, Global Teamwork and Continuous Improvement these are part of everything they do. These values are the foundation for Colgate-Palmolive business strategy and are reflected in every aspect of work life. Colgate cares for the Colgate people, customers, shareholders and business partners. Colgate is committed to act with compassion, integrity and honesty in all situations, to listen with respect to others and to value differences. All Colgate people are part of a global team, 26

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committed to working together across countries and throughout the world. Colgate is committed to getting better every day in all it does, as individuals and as teams. By better understanding consumers' and customers' expectations and continuously working to innovate and improve products, services and processes, Colgate will "become the best."(2007, Colgate Core Values). Diversity Training: Instead of exporting the US approach, the company examined what kind of training was needed in each country. It attempted to blend cultures and teach its managers how to collaborate across cultural boundaries. Through a combination of individual and team exercises, role playing, videos and other educational material, employees work through a variety of diversity issues that lead to valuing differences because they contributed to organizational goals. The first day of the program is the global section. It focuses on themes and values of Colgate: caring, global teamwork and continuous improvement. These values are corporate wide and give Colgate employees shared goals. The second day focuses on issues within a particular country. In the United States, the focus is on race, gender, age, sexual harassment and individuals with disabilities. Other countries will concentrate on the key issues that prevent their people from treating each other with respect, such as gender bias and discrimination based on class or religion (Ozbilgin, 2005). Recruitment/Development: Regular reviews of professional training programs benefit programs and career development processes assist the Board in guiding Colgates people development initiatives and efforts to gain a competitive recruitment and retention advantage. Emphasis is placed on practical learning and professional growth as these are critical to Colgates continued success. We invest generously in the training and education of Colgate people. Skill development includes: Formal classroom study sharing best practices, globally developing practical work applications based on real-world learning (Professional Development, 2007).

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Motivation Colgate has linked the pay of its managers and employees at all levels to the Companys performance. Adheres to this pay-for-performance philosophy, and stock-based incentives comprise a significant component of senior managements overall compensation. The "pay for performance" philosophy ensures that employees accomplishments are recognized and rewarded appropriately. Colgate has competitive compensation and benefitsincluding bonus and stock ownership programs. Colgate rewards success, greater the success, greater the reward. Rewards include holidays as well as financial rewards. Colgate also provides health care, Life insurance and Retirement benefits. These lead to a greater employee motivation and shared organization vision (Benefits and Compensations, 2007).

2.6 Critical Review:

Workforce diversity has come of age and organizations understand that this diverse workforce will be their competitive advantage in the future. Technology and services can be duplicated by competitors but a skilled workforce that one organization has cannot not be duplicated. A global workforce if managed, retained and motivated effectively will only take the organization to greater heights and enable it to compete in the global market. In order to achieve this; organizations should accept and celebrate diversity in the true sense. Plan and implement recruitment, selection and deployment policies which are a global in nature. Create an environment and corporate culture where every employee feels respected and a vital part of the organization regardless which nation, culture, race or religion he comes from. Diversity training should be conducted in order to attain an environment of harmony and mutual respect. It has bee proven that organization that have taken these initiatives have experienced only success.

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Chapter 3

Research Methodology

3.0 RESEARCH METHDOLOGY

The research methodology outlines the steps that are taken to conduct the research. The following figure shows the steps that were carried out in the research process.

Defining the problem and the research objectives

Developin g the research plan for collecting informatio n

Implementin g the research plan collecting and analyzing the data

Interpretin g and reporting the findings

Figure 3.1: Marketing Research Process (Kotler & Armstrong, 2001)

3.1 Defining the problem and the research objectives:

The first step was to define the problem. The problem had been identified as the challenges that HR Managers face in the management of a global workforce. Once the problem was defined research objectives were set. Research objectives classify the type of research to be conducted. A research project may have one of three types of research. Exploratory Research Descriptive Research Casual Research.

For this research study two objective were set Exploratory Research: Exploratory research is conducted in order to gather preliminary information that will help define problems. Exploratory research was conducted in order to have better

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understanding of the challenges of managing a global workforce. This also helped to determine the objectives of the research study.

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Chapter 3 Descriptive Research

Research Methodology

Descriptive research is carried out to better describe problems. Once the objectives were set after the exploratory research, a descriptive research for each objective was conducted. This research was mainly conducted through books and organizations official websites. More details have been provided in table 3.1.

3.2 Developing the Research Plan

In this phase of the research process information needed was determined, and plan was made to gather the information. This plan outlined sources of secondary data specifies research approaches, sampling plan and research instrument to conduct primary research. 3.2.1Determining Specific information needs To meet the information need two types of data can be collected secondary data and primary data. Secondary data: Secondary data is the data that already exists having been collected for another purpose. The sources of secondary data used in the research are Books Journals Magazines Internet sources

All of the above sources were consulted to gather accurate information regarding management of a global workforce. The research is based mostly on Qualitative data but in order to support qualitative data quantitative data was also obtained. The following table explains the detail of some of the secondary sources of data. Books were the main source of secondary data collection.

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Chapter 3 Table 3.1: Sources of Secondary data Books

Human management by Robert and John; published in 2004.

Research Methodology

Internet
resource Nestls official website:

Magazines/Journals
Dear Management monthly Focusing recruiting, questions on Workforce twiceand HR, benefits,

answers e-mail newsletter.

compensation and training. www.workforce.com/secti Organizational Behavior by Colgate Palmolive official website Debra L Nelson & Campbell http://www.colgate.com/app/Colgat Quick. Published in 1995 e/US/Corp/Governance/OurValues/ ColgatesCoreValues.cvsp International Management IBM official on/16/index.html .Diversity World

http://www.diversityworld. com/Diversity/workforce_ diversity.htm

website Asia Pacific Journal Of

by Hodgetts & Luthans; http://www.ibm.com/ibm/responsibi Human Resources. published in 2003 Managing Conflict Intercultural Effectively by lity/people/diversity/diversitystrategy.shtml Public Management Personnel

Stella & John, Published in 2001 Managing Across cultures by Susan & Jean: Published in 1997 Managing Human Resources by Cascio; Published in 2003 Journal of Cross- Cultural Physhcology. The Best of the

Bureaucrat.

Primary Data: 41

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Research Methodology

The need for gathering Primary data did not arise as secondary data was sufficient and authentic

3.3 Implementing the Research Plan Collecting and analyzing the data
Information was gathered from the secondary sources mentioned above, it was analyzed as can be seen from the literature review and the research plan was implemented.

3.4 Interpreting and Reporting the Findings.

Data analysis and findings have been done in the following chapter

3.5 Limitations of the Study

Due to time constraint and word limitations only three multinationals management practices were studied and analyzed. Pakistan is not yet a home for an international diverse workforce thus global workforce management practices relating to Pakistan could not be studied.

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Data Analysis and Findings

4.0 DATA ANALYSIS AND FINDINGS

Objective 1: To study the area of workforce diversity and determine its importance for the organization. Workforce diversity is the acknowledgement of differences among the employees. It does not only include cultural differences but goes beyond this factor and includes characteristics such as age, gender, religion, disability, language, race, ethnicity, experiences, and perspective, working styles, relationship status, family and personal responsibilities. It was found in the research that diversity management was often confused with Equal Employment Opportunity (EEO), and Affirmative Action. EEO and Affirmative Action are both laws which legally bound organization to not to discriminate on the bases of religion, race gender and ethnicity. Only focusing on providing employment and development opportunities for women the disabled and minorities to manage a diverse workforce is not diversity management as these are related to EEO and Affirmative Action. For differences between EEO/Affirmative Action and Diversity refer to Appendix B. Diversity management is not about fallowing a certain law as Organizations are required to do. To effectively manage diversity, businesses and organizations must stray away from affirmative action policies and focus on key elements such as communication, education and training. Organizations cannot afford to ignore the wave of diversity in the workforce; as it is no longer just a matter of legal or social responsibility but a matter of corporate survival. A diverse Managing diversity is required for global competition. Developed countries population is getting diverse each year and apart from that organization are expanding their operation globally leading to a diverse customer base. A diverse workforce will be able to relate to them easily.

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Data Analysis and Findings

When dealing with a diverse workforce the role of the. The Human Resource Management takes on an even more important role. The HRM must develop strategies to address workforce diversity. The success of these strategies depends on whether the HRM department has examined the organization's cultural environment, management systems and evaluation systems. To fins out if existing system and personnel would support or become a hindrance to diversity (Mathews, 1998, pp. 175-184).

Figure 4.1: Diversity Management, Equal Employment Opportunity and Affirmative Action

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Data Analysis and Findings

Objective 2: To illustrate the need for a strong corporate culture for crosscultural communication among the workforce and the management. It was clear from the research that one of the biggest factors in workforce diversity is cultural differences. These cultural differences influenced every HR process form recruiting to motivation. They are of the most importance as cultural factors have the greatest influence on employees behavior and shape their values and beliefs. The global workforce will consists of people belonging to different cultural backgrounds and the organization would have to provide them an adequate work environment where they can work in harmony. These differences have been studied through a research conducted by George Hofstede of over 70 countries (Refer Table 2.3) It is clear from the study that Asian and western employees have different working styles, perception and preferences. The table below summarizes these differences found through the research with regards to the five dimensions of Power Distance, Individualism, Masculinity/Femininity, Uncertainty Avoidance and Long Term Orientation. Table 4.1: Dimensions of culture Asian High Low Masculine High Long Term Orientation Western Low High Feminine Low Short Term Orientation

Power Distance Individualism Masculinity/Femininity Uncertainty Avoidance Long term Orientation

These differences in culture make it necessary for the organization to have a strong corporate culture. The corporate culture serves the important purpose of uniting employees on a common platform. In a global organization the employees must be armed with the knowledge and methods of dealing with employees coming from diverse cultural backgrounds thus would result in effective communication in the organizations. This is where diversity training comes in. Diversity training is of three types. 44

Chapter 4 Legal awareness Cultural Training Sensitivity Training

Data Analysis and Findings

Legal awareness is concerned with creating awareness among managers and employees about laws such as the EEO and Affirmative Action. Cultural and sensitivity training are the true essence of diversity training. During the course of the research it was astonishing to know that many organizations thought that diversity training was not useful. Apart from being costly it also created walls between employees. This is arguable as diversity training would not be effective if not implemented correctly. There are several Diversity training firms who make specialized diversity training programs for organizations. Organizations can enroll the services of these firms it they dont have adequate resources for diversity training programs. Colgate Palmolive is an excellent example of a company which has made a successful diversity training program and this has resulted in success for them.

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Data Analysis and Findings

Objective 3: To evaluate the methods required for effective recruitment, deployment and development of a global workforce. Human resource is the most expensive resource of an organization. Hence careful consideration is required when recruiting and selecting employees. Global organizations have a wider pool of talent to choose from. This task becomes difficult as the organization will have to think on a global perspective no longer bounded by geographical boundaries. HR managers would need to make a plan where they will identify the number of employees needed and the skills required. It is essential that employees skills and objectives meet the requirements and objectives of global organizations. The set of skills required by global organizations would be slightly different then other organization. For e.g. Global employees would need to need to adapt to different cultural environments as they are transferred to other countries, so they should be able to easily adjust themselves to the new environment (Refer Figure 2.1). Recruitment can either be external or internal. But in this competitive and ever changing environment organizations should focus on external recruitment while developing internal human resources. The research identified the most effective methods used by organizations to hire a diverse workforce. (Refer Table 2.5). Then top three most productive methods have been displayed in the table below.

Figure 4.2: Most productive Sources of Hiring.

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Data Analysis and Findings

Job boards are the most productive source of hiring employees. Job boards include monster.com, Careerbuliding.com etc. These are all internet sources and as mentioned above Internet having a worldwide reach and being cost effective is becoming a favourite with the organizations. Once organizations have recruited and selected the potential employees they would need to staff/ deploy them where there skills are needed. Effective methods would be required to bring the right people to where the work is globally on an as-needed basis. This is a costly procedure and requires extensive research about the employees, as in global deployment employee skills do count but the personal characteristics and intercultural capabilities of the employee also come into the picture (Refer Figure 2.1) Training and development programs for a global workforce have to be on an international basis employees should not only be up to dated with the changing environment of their own countries but of others as well. For global organizations training takes two forms Diversity training Employee training and Development.

Diversity training has been discussed and analyzed in detail in objective 2. For development of the employees mostly Job site methods are being used. No evidence was found on the implementation of Off- side methods by organizations. This is probably due to the fact that off- side methods require employees to go on leaves and to totally focus on the development programs. In this competitive environment organizations cannot afford their employees absenteeism. |Internet is a blessing for global organizations. Organizations are using internet in the recruitment process, diversity training and deployment of employees.

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Data Analysis and Findings

Objective 4: To critically evaluate the practices considered necessary to motivate a global workforce. From the research it became clear that motivation in a universal concept. Each and every one of us is motivated by the goals we want to achieve. Motivation theories formulated by Maslow and Herzberg have an international bearing. They can be applied by global organizations to motivate a global workforce with just a minor change. This has been proved in the practices of Nestle, IBM and Colgate Palmolive discussed in objective 5. Maslow created a hierarchy of needs, Maslows theory assumed that individuals follow this hierarchy, but it is not necessary that this hierarchy is followed. For example for some employees fulfilling their esteems needs would be more important to them then to fulfill their social needs, this becomes apparent when motivation is applied through the following Job design Work Centrality Reward Systems.

Employees coming from different cultural backgrounds view different jobs differently. What might be the motivational factor for one employee according to his perception of the job may be a de motivator for another employee because of his different perception of the same job. The Jobs should be also according to the skills, education and experience of the employees. If this not the case employees their will be no job satisfaction. Employees will also feel that they are not important for the organization The research conducted by George Hofstede clearly shows how coming from different cultural backgrounds has an impact on motivation. The same is the case with work centrality. It can create the biggest misconception about the importance to work to an individual. If an employee is working late it does not necessarily means that his work is important to him and his biggest motivator would be his work. 48

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Data Analysis and Findings

Rewards are of two types. One are financial in nature and the others are non financial in nature. Some employees would prefer financial rewards and some would go for non financial rewards. It is up to the organization to accurately identify the motivational needs of the employees and work towards satisfying them. This is very crucial as identifying employees needs and understanding is more complex. It is important that organizations understand that each individual is unique and has different motivators. If organizations do the same things for everyone, increasingly they will alienate more and more employees and more often than not, the top performers. One size doesn't fit all when it comes to employee motivationrewards that motivate best are those that are most valued by the person you are trying to thank. Thus organizations would have to come up with a solution that works for everyone. One step that organizations can take is form motivational practices according to geographical locations. Participative management and grievance handling can also be used to motivate the workforce. Involving employees in the decision making process or hearing their ideas would increase the employees self worth. Grievances handling would create a positive image of the organization in the minds of employees, as they would know that the organization doesnt only care about their work but also cares about them as well.

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Data Analysis and Findings

Objective 5: To critically asses the practices that are currently being used by global organizations to manage their workforce. IBM, Nestle and Colgate Palmolive were the organizations whose global workforce management practices were studied and have been analyzed in context of workforce diversity, Corporate Culture, Diversity Training, Recruitment/Development and motivation below. Workforce Diversity: IBM is a global organization with local management policies. It recognizes the importance of workforce diversity and need to manage it effectively. Hence of discrimination on any bases is not done. It is aware of the fact that people belonging to different regions have different issues. These issues are addressed by IBM according to the region. IBM places a lot of emphasis on women development. Nestle also follows the same strategy. Nestle embraces all cultures and sees its strength in its diverse workforce. Their policy is to adapt as much as possible to regional circumstances, mentalities and situations. Thus employees can relate to them better. Colgate Palmolive respects all cultures and has defined their diversity principles globally. They also make sure that discrimination and harassment issues do not arise as well. It was Colgate Palmolive that truly understood the essence of workforce diversity and didnt confuse it with EEO and Affirmative Action. On the other hand IMB policies did recognize workforce diversity but they were more towards EEO and Affirmative Action as they placed a lot of emphasis on the recruitment and development of Women, people with disabilities etc. Nestle placed a lot of emphasis on local management through this they were able to create strength and flexibility and were

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Data Analysis and Findings

able to make decisions that are better attuned to specific situations in a given country, by decentralizing operational responsibility. Corporate Culture: IBM, Nestle and Colgate Palmolive have strong corporate cultures. IBM makes sure that all its new employees are well aware of the culture this is done through their Your IBM Program. Nestls culture is strongly influenced by its parent company which is Switzerland. However it continues to evolve according to the requirement of the location. This emphasizes their decentralization policy. Another aspect of Nestle Culture is the respect of individuals and their cultures. Colgate corporate culture also includes respect for all cultures, valuing differences and employees. One thing that was unique in their culture was the emphasis placed on global team work. It believes that all employees all over the world are one team and that is the Colgate Team. Diversity Training: IBM has a number of diversity training programs to for its employees. These include Shades of Blue, Quick Views and Learning clusters. They are for employees at every level of the organizations. These training programs combine presentations, group discussions, role playing and videos to build understanding and skills for multicultural engagement. No information regarding Nestle diversity Training programs was found. This may be due to the fact that Nestle believes in decentralization of policies so the need for diversity training does not arise. Colgate Palmolive has an excellent Diversity training program named Valuing Colgate People. It eliminates the motion that Diversity training is a waste of resources as it is not effective. Valuing Colgate People proves that diversity training program if implemented correctly can be very beneficial for organizations. 51

Chapter 4

Data Analysis and Findings

Through a combination of individual and team exercises, role playing, videos and other educational material, employees work through a variety of diversity issues that lead to valuing differences because they contribute to organizational goals. It also integrates the corporate in its diversity training. The program is divided into two sections. The first section focus on issues pertaining to global diversity and corporate culture and the second section focuses on diversity issues within a particular region. Colgate Diversity training program was the most balanced and carefully structured program as compared to the diversity training program of IBM. Recruitment/Development: IBM, Nestle and Colgate Palmolive followed the third global recruiting approach which was Third country Nationals. As evident from their practices and culture all three companies value and respect diversity and do not limit recruitment to only their home country. Discrimination based on any grounds of race, gender, religion, culture is not made. All three companies have facilities of internet recruitment as well as internet based training and development programs. IBM development program for its employees were found to be the preeminent. As their development programs did not only include skills their employees would need in the present but skills they would require in the future as well. This was the factor missing in the development programs of Nestle and Colgate Palmolive. Their redeployment process indicates where employee skills are needed the most; this also helps them to identify their top talent. For nestle employee development is a continuous process. They provide training for all staff member at every level. They also incorporate E-learning as well. Colgate Palmolive development program focuses on learning and growth. Skill development includes: Formal classroom study, sharing best practices, globally developing practical work applications based on real-world learning.

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Chapter 4 Motivation:

Data Analysis and Findings

IBM, Nestle and Colgate Palmolive motivational practices can be linked to Maslows motivational theory. All the companies use motivational factors which are related to the hierarchy of needs. This has been shown in the table below. Table 4.2: Application of Maslows Motivation Theory
IBM Physiological Needs Adequate salary Nestle Adequate salary Colgate-Palmolive Adequate salary related to employee Safety Needs performance Endure work place Work place safety. Workplace safety. safety. Benefits Social Needs Retirement Employee programs. Health Retirement pension Life insurance Focus on team work, Holidays for Employee accomplishments are recognized rewarded. Self Actualization and plans,

plans Employees Get to Motivational gathers. workshops. Entertainment facilities employees Employee recognition awards.

Esteem Needs

Employee Recognition awards

NOTE: Reaching the Self Actualization Stage is up to the employee. When feeling of reaching ones full potential sets in. One has reached the Self Actualization State.

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Chapter 4

Data Analysis and Findings

One of the positive things about the motivational practices of IBM, Nestle and Colgate Palmolive was their understanding of changing employees needs and taking steps to full fill those needs. For e.g. IBMs child care and dependent care keeping in mind the needs of women in the workforce. Nestls alternative medicine, wellness programs and corrective laser eye surgery. Lastly Colgate Palmolive Pay to Performance program rewards employees on the bases of their performance, higher the success higher the reward. All the motivational policies of the three companies differed from region to region keeping in mind the culture and needs of a particular region. From the research of IBM practices it was found that a new type of workforce is coming up due to the internet. This workforce consists of people who work from their homes for the organization. This is another dimension of HR. It would be very interesting to find out how to manage, retain and motivate employees who are never physically present in the organization. All three organizations have truly understood the value of diversity and how to manage it effectively. It is for this very reason that they are the top multinational organizations of the world, having a loyal, dedicated and a motivated diverse global workforce.

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Chapter 5

Conclusion and Recommendations

5.0 CONCLUSION AND RECOMMENDATIONS

5.1Conclusion:
For this research paper the area of managing a global workforce was researched and analysed in detail. The research objectives covered the area of diversity, corporate culture, recruitment, deployment, development, training and motivation of a global workforce. A Global diverse workforce has come of age an organization are realizing the fact that they can use them to their advantage. The wave of multiculturalism is here to stay and cannot be ignored. Even more so when it has been proved that it is beneficial for the organization. Organizations have realized the seriousness and sensitivity of the issue. They not only value diversity but celebrate it. From recruitment to diversity training organizations face a number of challenges. A strong corporate culture will help to unite the employees on a common platform setting aside their differences and align them with the objectives of the organization. Communication plays a vital role in managing a global workforce. It will assist the employees and the management to accept diversity and celebrate it. Communication of employees and the top management should take place on a regular basis. Organizations should make policies that have a global perspective; provide an environment of equity with equal growth opportunities to the employees regardless of different backgrounds to have a dedicated and valuable workforce. Only then organizations will be able to reap the benefits of a global workforce. A diverse workforce can become an organizations secret weapon to success.

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Chapter 5

Conclusion and Recommendations

5.2 Recommendations:
If organizations do not have the resources to effectively manage a global workforce, especially in the area of diversity. They should enroll services of firms who specialize in workforce diversity management. The internet is a vital tool in order to recruit and deploy global employees. Organizations should make use of this and save time and cost. Organizations can also use specialized computer software for human resource management, a good example is web resource which s a simple, easy-to-use project and resource scheduling application. Designed specifically for resource and project managers, Web Resource optimizes employee management through employee tracking, skills assignment, resource and project forecasting. Motivational policies should be customized according to the needs of employees belonging to a particular region. Corporate culture of the organization should be such that all employees can relate to it.

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APPENDICES
APPENDICE A: Strategic Human Resources.

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APPENDICE B: Differences between EEO/Affirmative Action and Diversity

EEO/AFFIRMATIVE ACTION Government initiated Legally Driven Quantitative Problem Focused Targeted Problem Focused DIVERSITY Voluntary Productivity Driven Qualitative Opportunity Focused Inclusive Proactive

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