The role of workers + Migrant workers + expatriate assignments

It is important to understand within the organizations around the world how culture can affect the behaviors and social rules within the workforce. We cannot assume that because you are dealing with somebody from a region, as for instance the European Union, you are dealing with the same type of employees. Every country has its own kind of social rules that vary principally by its culture.

Here is where the area of Human Resources, as a part of the organization, has an important role within the organization. The design of strategies of this area could lead to the success or failure of the company. The importance relies on the issue of the significant role that has all workers in the configuration and function daily. Nevertheless is not easy to deal with this issue.

One of the main approaches to understand the role of workers can be seen in unions. This type of association has been used as tool to defend the right of workers, especially for companies in which there are conditions not too well conditioned to work properly affecting the employee main necessities. However, in some countries unions have been utilized improperly. By the means of looking for fulfill some conditions of workers, has done to company lose competitiveness. This kind of unions has taken place especially in undeveloped countries in which some workers try to take advantage of the amounts of investment done by multinationals in the host country.

However, in other countries, workers have the right to take part of decision-making process rather than to see the company as source of resources and to ask more than the company can give. This continuous oppression by unions within the company what creates is a conflict between managers and employees. The necessity of reaching consensus would be an issue forever within the company affecting directly the organizational climate. The conflict in some many cases can stay with no answers.

If the company fights to resolve this issue and get a consensus probably they would have enough competitiveness. By the other hand if unions continue confrontations, multinationals can decide to immigrate to another place or to contract other type of workers. Here is where migrations from all over the world appear. Real necessities make people offer cheaper and without requirements their workforce.

SO WHAT IS CO-DETERMINATION

When unions are used in the way that should be used is where the principles of co-determination appear. To avoid fear conditions imposed by managers of companies is where some type of principles allows workers to have some type of control over decisions affecting directly them.

The best example of this situation can be studied in Germany which has created during time a type of system where the unions can be represented within the organizations. The principles of co-determination give the right to get involved in decision-making process, where managers are force to share power with the unionist, having both power to both important decisions inside organizations. These principles refers to the obligation by law of the participation of workers in decisions, since 1951 with boards, 5 members share-holders, 5 trade unionists and 11 member chosen by the two parties. In 1952 the law was reinforced implying that “companies appoint people who are competent and capable of having discussions with the employers to be in a skilled supervisory board”, starting from one sector was spread to other sectors of the economy. Then with time appeared the work council having the power of signing all agreements in the company(Piette, Jean-Jacques. 2004).

Source: http://germanhistorydocs.ghi-dc.org/sub_document.cfm?document_id=2847

These principles in somehow are an advantage for the company. Even can be considered as a time-wasting and complex to reach an agreement, can be seen as a way of getting consensus. In past year were just the confrontations of the unions against managers and representatives of the company. The principles are an approach of how to get a resolution of conflict over crashing interesting. Besides the power giving to workers, the last word relies in managers and owners, but with adequately and properly selection of representatives and issues these principles allows to avoid wasteful confrontations based on strikes and other mechanisms that make to the company lose its competitiveness.

In countries where applies these principles, all managers and employers should be have awareness to deal with workers, trying to put scenario where decisions are taken considering the interests and consequences of all stakeholders. Consequences from decisions are not just for managers, are for the all organization and that is why co-determination appears as a way of doing more participative representation of workers within the organization.

Sources:

Piette, Jean-Jacques. 2004. “Understanding Management German style”. Les Amis de L’ecole de Paris.

Robledo, Cristina; Organisations and Cultures; Class information; Universidad EAFIT, 2010

Merging OC

Source: http://managingthedragon.com/?cat=466

When we are talking about acquisitions it is important to talk about the process of merging. Obviously, in a competitive world this strategy to increase profitability and market share is becoming more and more seductive and immediate appeal. However, the acquisition should be analyzed and understood beyond as a simple transaction to buy a company to growth. When we talk about of the acquisition from a company to another, always there is going to have a process of merging different organizational cultures, implying the reconstruction of a new social identity.

Mergers and acquisitions in somehow allow companies to transform and shape organizations in a unique way giving some advantages as well as challenges that should be faced. It is more than just merging, in many cases of mergers and acquisition the main variable has been the integration process and the acculturation process. Depending in how these variables are conducted, merger could have success.

The value creation should be the main objective in successful acquisitions. Value creation is just going to be created until capabilities are transferred as people from both start to collaborate to create expected benefits and unpredicted opportunities. This shows the importance of managers to deal and cooperate to create real value by management, to get participation of people involved without compromising the strategic task.

But could be possible to have similar organizational cultures and management styles to allow a process of merger? In reality is too complicated and the bunch of options could vary. Considering the cultural compatibility could be criterion in the search for a potential candidate. But managing the cultural differences is a more realistic approach of the normal situations.

The effective integration can be understood as the mixture of firms into a new single unity which is going to be conducted by common goals of the new organization. This integration usually is obstructed with challenges of nationality and perceived cultural differences, values and beliefs, especially focus about the work place.

Other variables within the acquisition process that are relevant are the motive of acquisition and the process of implementation. The motive will determine the level of interaction among its members and the process of implementation should define strategies which should not go in detrimental of the organization to permit the acculturation process without losing competitiveness.

The acculturation process occurs among the conflictive subgroups desire for cultural differentiation and organizational forces for integration, which usually is time-consuming process. Some scholars say that is important for the manager during this process reconcile the need for strategic interdependence between the two firms and in somehow an organizational autonomy. After post-merger integration, the degree of assimilation is minimal.

Source: http://www.thevarguy.com/2009/02/26/comptia-where-are-the-ipos-mergers-and-acquisitions/

There are a lot of advantages from mergers and acquisition, but mainly are:

• Renewal speed of market position is master than through internal development
• Mixing together different skills and knowledge to create a unique learning opportunities
• Superior performance one there is an effective post-merger implementation strategies
• The new organization can take the best from both companies, using the best practices of each one and technologies. Research and development departments are the most benefitted from the transference of people and technology
• The new company can increase its attractiveness by a broader scope of products or services offered
• A sentiment of strength to compete is arisen

Nevertheless mergers and acquisitions can have some challenges as:

• The role of managers can be crucial to create value through the transference of capabilities. Relies in the will and capabilities of them
• Managing diversity and cultural awareness will appear as an issue during the merger
• Usually the implementation strategies could affect organizational effectiveness especially when they create acculturate tension and conflict
• Acculturate tension while the organizational forces tend to integration
• Time-consuming process of the integration and recognition of interdependence during the merger and organizational autonomy.
• Feelings of uncertainty experienced by employees
• HR Integration can become complex to achieve
• Workers might experience lose of identity once the process takes place

BIBLIOGRAPHY

Alzira Salama, Wayne Holland, Gerald Vinten, (2003) "Challenges and Opportunities in Mergers and Acquisitions: Three International Case Studies – Deutsche Bank-Bankers Trust; British Petroleum-Amoco; Ford-Volvo", Journal of European Industrial Training, Vol. 27 Iss: 6, pp.313 – 321.

Robledo, Cristina; Organisations and Cultures; Class information; Universidad EAFIT, 2010