Challanges of Managing A GLobal Workforce

TABLE OF CONTENTS
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 -
2.0 LITERATURE REVIEW....................................................................................- 4 -
2.1Workforce diversity:.........................................................................................- 5 -
2.1.2 Importance of Workforce Diversity..............................................................7
2.2 Cultural Dimensions......................................................................................- 13 -
2.2.1 Diversity Training:.................................................................................- 15 -
2.3 Human Resource Planning:...........................................................................- 17 -
2.3.1 Recruitment:...........................................................................................- 18 -
2.3.2 International Staffing/ Deployment:.......................................................- 21 -
2.4 Motivation.....................................................................................................- 24 -
2.4.1 Maslow’s Theory....................................................................................- 25 -
2.4.2 Herzberg’s Theory:.................................................................................- 27 -
2.4.3 Motivation Applied:...............................................................................- 28 -
2.5 Organizational Practices:...............................................................................- 29 -
2.5.1 IBM:.......................................................................................................- 30 -
2.5.2 Nestle:.....................................................................................................- 33 -
2.5.3 Colgate-Palmolive:.................................................................................- 34 -
2.6 Critical Review:.............................................................................................- 38 -
3.0 RESEARCH METHDOLOGY.........................................................................- 38 -
3.1 Defining the problem and the research objectives:.......................................- 38 -
3.2 Developing the Research Plan.......................................................................- 39 -
3.2.1Determining Specific information needs.................................................- 39 -
3.3 Implementing the Research Plan Collecting and analyzing the data.............- 41 -
3.4 Interpreting and Reporting the Findings........................................................- 41 -
3.5 Limitations of the Study................................................................................- 41 -
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 -
III
LIST OF FIGURES
Page No
Figure 2.1: Global Employee Selection Factors ……………………………….21
Figure 2.2: Motivational Process……………………………………………….24
Figure 2.3: Maslow’s Hierarchy of Need……………………………………....25
Figure 3.1: Marketing Research Process………………………………………38
Figure 4.1: Diversity Management, Equal Employment Opportunity……...... 43
Figure 4.2: Most productive Sources of Hiring.................................................46
IV
LIST OF TABLES
Page No
Table 2-1 Population of Countries………………………………………..4

Table 2.2 Continuum of Diversity Approach…………………………….12
Table 2.3 Selected Countries on Hofstede’s Cultural Dimensions………13
Table 2.4 Types of Recruitment Methods………………………………..19
Table 2.5 Most effective means of hiring a diverse workforce…………..20
Table 2.6 Employee Development Approaches………………………….23
Table 2.7 Women in IBM Workforce…………………………………….31
Table 3.1 Sources of Secondary Data…………………………………….40
Table 4.1 Dimensions of culture………………………………………….44
Table 4.2 Application of Maslow’s Motivation Theory…………………..53
V
Chapter 1 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
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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.
3
Chapter 2 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 Millions.
China 1318 India 1747
India 1132 China 1437
United States 302 United |States 420
Indonesia 232 Indonesia 297
Brazil 189 Pakistan 295
Pakistan 169 Nigeria 282
Bangladesh 149 Brazil 260
Nigeria 144 Bangladesh 231
Russia 142 Dem. Rep. Congo 187
Japan 128 Philippines 150
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 Hispanic-
American 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 individual’s 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 individual’s 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).
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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 under-
representation 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:
Today’s 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
7
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 today’s 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 well-
developed, 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 don’t. 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
9
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 top-
down 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
10
Resistance Fairness Access- Diversity

Legitimacy Culture
Viewpoint Diversity not Diversity creates Diversity Diversity culture
important and conflicts and provides permeates
does not effect problems. opportunities for organizations
management. employers and
organizations
Action Resistance to Diversity training Build “Diversity Proactive efforts
Change Affirmative Acceptance” on diversity.
Denial of Action culture. Employees are
problems Compliance Reduces conflicts seen as resources.
Focus on in Multicultural
Protective groups workforce.
Consequences Protect Status Discrimination All employees are Effective

Quo addressed valuable to recruit relations among
Increased through internal and retain. all employees.
possible legal responses. Acceptance leads Diversity access
liabilities Minimize legal to internal through
exposure problem solving. 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
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 Hofstede’s Cultural Dimensions

Masculinity/ Uncertainty Long \Term
Country Power Individualism
distance Femininity Avoidance Orientation
Brazil 14 26 27 21 6
Canada 39 4 34 41 20
France 15 10 35 10 N/A
UK 42 3 9 47 18
India 10 21 20 45 7
Israel 52 19 29 19 N/A
Japan 33 22 1 7 4
Mexico 5 32 6 18 N/A
Netherlands 40 4 51 35 10
South Africa 35 16 13 39 N/A
South Korea 27 43 41 16 5
US 38 1 15 43 17
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
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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:
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
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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 organization’s workforce, enhance
communications and enable global teams to work together to achieve a single
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).
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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).
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 company’s parent country but
assigned to operations in other countries. Expatriates are a major source of
increasing organization’s 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
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.
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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 External Recruitment
Organizational Databases College and University Recruiting
Job posting School Recruiting
Promotions and Transfers Labor Unions
Employee Referrals Employment Agencies and Search Firms
Competitive Sources
Media Sources
SOURCE: 2004 HUMAN RESOURCE MANAGEMENT
10
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 Productive Somewhat Not Not Applicable
Productive Productive Productive
Affinity 9% 18% 21 21 32
Groups
Niche 3% 18% 24 41 15
(Diversity) Job
Boards
Major Job 6% 28% 43 20 3
Boards
Diversity 11% 11% 34 40 3
Career Fairs
Dedicated 3% 6% 15 6 70
Diversity
Recruiters
Dedicated 6% 3% 9 3 79
Diversity
Sources
Placement 3% 15% 32 26 24
Agencies
Employee 11% 23% 46 14 6
Referrals
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
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 S
O
U Coaching Classroom courses and degrees
R Committee Assignment /Meetings Human Relations Training
C Job Rotation Simulations
E Assistance-to Positions Sabbaticals and leave of absence :
Online Development
Corporate University
2004 HUMAN RESOURCE MANAGEMENT
 Job- site Methods:

Job site development methods are used to develop employee’s 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.
14
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.
Drive toward Attainment of

Unsatisfied
goal to satisfy goal (need
Need
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 employee’s behavior.
15
 Process Theories:
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 Maslow’s Theory:

Maslow’s 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: Maslow’s Hierarchy of Needs
16
 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 person’s 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 person’s 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 one’s 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).
17
Maslow’s 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 didn’t 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 Herzberg’s Theory:
Herzberg’s 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
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
19
 Work Centrality:
“Work centrality is the importance of work in an individual’s 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 don’t 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.
2.5.1 IBM:
 Workforce Diversity:
20
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 put’s 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:
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
21
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, Total

Middle Worldwide
East
and Africa
Total Women 31.0% 24.9% 25.4% 28.0%
Women Managers 28.2% 18.2% 18.5% 23.5%
 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
22
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 manager-
determined 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.
2.5.2 Nestle:
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé
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
Nestlé's Swiss subsidiary, its international headquarters and the registered office of
Nestlé's holding company (Nestle Insight: business Principles).
23
 Diversity Management:
Nestle respect all cultures. Therefore, Nestlé embraces cultural and social
diversity and does not discriminate on the basis of origin, nationality, religion,
race, gender or age. Nestlé does not regard its Swiss headquarters as the center
of the universe. Decentralization is a basic principle of Nestlé. 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 Nestlé's executives and employees and a greater sense of
identification with Nestlé's business. It is not Nestlé's policy to generate most
of its sales in Switzerland, supplemented by a few satellite subsidiaries abroad.
Nestlé strives to be an "insider" in every country in which it operates, not an
"outsider."(Nestle Insight: business Principles).
 Corporate Culture
“Nestlé’s 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.
Nestlé prefers the long-term perspective to short- term thinking” (Nestle
passion to win).
“Nestlé’s 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 CV’s online. Nestle offers progressive
development through on-going training throughout an employee’s career.
Training possibilities are available to all staff. Nestlé recently introduced e-
learning as well, a web-based programme for self development. According to
24
Nestle “When joining Nestlé, your training is not over - it is only just the
beginning!” (Passion to win).
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). Nestlé also cares for the health of their employees. Nestlé Singapore
launched an integrated and comprehensive Internal Wellness Nestlé program
in 2003 to promote awareness and impart necessary life-skills to strive for a
healthy work-life for all staff. Nestlé 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
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 US-
based 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,
25
in Saudi Arabia). Through the office of the director of global employee

relations, the company has redefined its diversity principles globally. Colgate-
Palmolive 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,
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).
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.
26
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).
Regular reviews of professional training programs benefit programs and career

development processes assist the Board in guiding Colgate’s 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 Colgate’s 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).
 Motivation
Colgate has linked the pay of its managers and employees at all levels to the
Company’s performance. Adheres to this pay-for-performance philosophy,
and stock-based incentives comprise a significant component of senior
management’s overall compensation. The "pay for performance" philosophy
ensures that employee’s accomplishments are recognized and rewarded
appropriately. Colgate has competitive compensation and benefits–including
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:
27
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.
28
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 Developin Implementin Interpretin

the g the g the g and
problem research research reporting
and the plan for plan the
research collecting collecting findings
objectives informatio and
n analyzing
the data
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
38
understanding of the challenges of managing a global workforce. This also helped to

determine the objectives of the research study.
39
Descriptive Research
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.
40
Books Internet Magazines/Journals

Human resource Nestlé’s official website: Dear Workforce
management by Robert and Management’ twice-
John; published in 2004. monthly questions and
answers e-mail newsletter.
Focusing on HR,
recruiting, benefits,
compensation and training.
www.workforce.com/secti
on/16/index.html
Organizational Behavior by Colgate –Palmolive official website .Diversity World
Debra L Nelson & Campbell http://www.colgate.com/app/Colgat http://www.diversityworld.
Quick. Published in 1995 e/US/Corp/Governance/OurValues/ com/Diversity/workforce_
ColgatesCoreValues.cvsp diversity.htm
International Management IBM official website Asia Pacific Journal Of

by Hodgetts & Luthans; http://www.ibm.com/ibm/responsibi Human Resources.
published in 2003 lity/people/diversity/diversity-
strategy.shtml
Managing Intercultural Public Personnel
Conflict Effectively’ by Management
Stella & John, Published in
2001
Managing Across cultures by Journal of Cross- Cultural
Susan & Jean: Published in Physhcology.
1997
Managing Human Resources The Best of the
by Cascio; Published in 2003 Bureaucrat.
Table 3.1: Sources of Secondary data
Primary Data:
41
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.
42
Chapter 4 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.
42
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
43
Objective 2: To illustrate the need for a strong corporate culture for cross-
cultural 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 employee’s 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 Western
Power Distance High Low
Individualism Low High
Masculinity/Femininity Masculine Feminine
Uncertainty Avoidance High Low
Long term Orientation Long Term Orientation Short 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
44
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.
 Legal awareness
 Cultural Training
 Sensitivity Training
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 don’t 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.
45
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 employee’s 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.
46
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.
47
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, Maslow’s 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
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 employee’s 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 motivation—rewards
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 employee’s self worth. Grievances handling would create a
positive image of the organization in the minds of employees, as they would know
that the organization doesn’t only care about their work but also cares about them as
well.
49
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
didn’t 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
50
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.
Nestlé’s 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
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.
52
Motivation:
IBM, Nestle and Colgate Palmolive motivational practices can be linked to Maslow’s
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 Maslow’s Motivation Theory
IBM Nestle Colgate-Palmolive
Physiological Needs Adequate salary Adequate salary Adequate salary

related to employee
performance
Safety Needs Endure work place Work place safety. Workplace safety.
safety. Retirement Employee Health Retirement plans,
Benefits programs. pension Life insurance
plans
Social Needs Employees Get to Motivational Focus on team work,

gathers. workshops. Holidays
Entertainment
facilities for
employees
Esteem Needs Employee Employee Employee

Recognition awards recognition awards. accomplishments are
recognized and
rewarded.
Self Actualization
NOTE: Reaching the Self Actualization Stage is up to the employee. When

feeling of reaching one’s full potential sets in. One has reached the Self
Actualization State.
53
One of the positive things about the motivational practices of IBM, Nestle and
Colgate Palmolive was their understanding of changing employee’s needs and taking
steps to full fill those needs. For e.g. IBM’s child care and dependent care keeping in
mind the needs of women in the workforce. Nestlé’s 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.
54
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 organization’s
secret weapon to success.
55
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.
56
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64
APPENDICES
APPENDICE A: Strategic Human Resources.
65
APPENDICE B: Differences between EEO/Affirmative Action and
Diversity
EEO/AFFIRMATIVE ACTION DIVERSITY
Government initiated Voluntary
Legally Driven Productivity Driven
Quantitative Qualitative
Problem Focused Opportunity Focused
Targeted Inclusive
Problem Focused Proactive
66

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TABLE OF CONTENTS

Table 2-1 Population of Countries………………………………………..4

1.1 Research Background

1.2 Topic Justification

technology is all about finding, developing, utilizing, maintaining, retaining and

1.3 Objectives of the study

3. To evaluate the methods required for effective recruitment, deployment and

4. To critically evaluate the practices considered necessary to motivate a global

1.4 Significance of the study

2.0 LITERATURE REVIEW

Table 2.1: Population of Countries,

 Legal and Political Factors

Workforce Diversity is on the increase in many organizations. “According to the

The broadest concept of Diversity is recognizing differences among people. However

“Affirmative Action is government-initiated to comply with the law and is derived as

According to R. Roosevelt Thomas, the next evolution of diversity is best referred to

2.1.2 Importance of Workforce Diversity

Workforce diversity represents an organizations role towards corporate and social

Today’s labor pool is dramatically different than in the past. It is no longer

Non-compliance with Equal Employment Opportunity or Affirmative Action

As a Business Communications Strategy:

Flexibility ensures survival:

Organizations can approach diversity management from different perspectives. It can

Table 2.2: Continuum of Diversity Approaches

Resistance Fairness Access- Diversity

Consequences Protect Status Discrimination All employees are Effective

In order to understand the behavior of people belonging to different cultures George

Table 2.3: Selected Countries on Hofstede’s Cultural Dimensions

South Africa 35 16 13 39 N/A

SOURCE: 2004 HUMAN RESOURCE MANEGEMENT

2.2 Cultural Dimensions

The study focused on the dimensions of culture. These are as follows

It is the extent to which people prefer working as a member of a group or individually

Long term Orientation:

“The global HR manager plays a pivotal role in developing, protecting and

2.2.1 Diversity Training:

Diversity training has three components

Legal awareness is done in order to minimize discrimination and harassments lawsuits

Cultural awareness focuses on building an understanding of different cultures among

Organizational structure influences all HR management functions from recruitment to

2.3 Human Resource Planning:

Global companies can follow 3 strategies for recruiting employees.

Host country Nationals

Third Country Nationals:

Table 2.4: Types of Recruitment Methods

In order to find the Hiring Sources of multinationals, a research of over 200

Table 2.5: Most effective means of hiring a diverse workforce.

2.3.2 International Staffing/ Deployment:

In the past organizations had relied on a headquarters-subsidiary structure and the

One of the alternate ways of deploying employees is through virtual solutions.

Development of the employees is very essential as it contributes in their life long

Table 2.6: Employee Development Approaches

2004 HUMAN RESOURCE MANAGEMENT

 Job- site Methods:

Drive toward Attainment of

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

As cultural differences influence every HR process, motivation is no exception.

The Assumption on content and process:

2.4.1 Maslow’s Theory: