BUS 401 Case 4 International Business
BUS 401 Case 4 International Business
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Date Created: 11/06/15
Running head: Questions and Answers 1 Assignment Grading Course: Name Questions and Answers Yours Name Professor’s Name [optional] University Questions and Answers 2 1. The economic/political environment in Nigeria—how will this influence the difficulty in hiring local staff or recruiting expatriates to come work in Nigeria? How will this influence your strategy? In United States, HRM system is very strict as compare to Nigeria where Companies must have to follow the federal HRM guidelines while hiring any new employee, and management of every Company takes decision according to Company’s requirement, political and economic factors, that’s why they hire skilled and specific resources from the local environment and United States, Labor Law, allow them to pay high wages and accommodations to employees but Nigeria is already high populated environment where Arik Air company’s management think, local people are less skilled and also due to high population, do their job with less wages which has created social inequality issues within the Country. Government had also less concerned with the local employees issues but after raised issues, government has been considering the local people issues and trying to equalize the environmental conditions of the Country. Therefore, while hiring the local staff, American Company has to consider the HRM process and current issues of the Company which are still pending to equalize the conditions for local workers. Hence, Nigerian HRM process must have to include the environmental factors such as; social, political, legal and economic. “However, currently, for most the organizations in Nigeria, performance appraisal is a dialogue process and serves as a mentor to generally mould the individual to perform at an optimal level. The employees are allowed to carry out a self evaluation based on engagements and projects they were involved in during the assessment period. It is expected that performance appraisal system should be a fair process involving Questions and Answers 3 assessments on skills, technical knowledge and how well the employee can offer quality service delivery.” Human Resource Management Practices in Nigeria (June, 2011). Hence, American Company has to consider few additional HRM practices to hire the local aspirants for airways business in Nigeria, and have to adapt the following best practices while making this Acquisition process, Budhwar, P. and Debrah, Y. (2004): Openness and objectivity of the Nigerian recruitment and selection process Strategic development of staff for optimal utilization Flexibility in pay system Balance of power in the application of equal employment opportunity The efficiency of affirmative action in ensuring employment opportunity Group harmony which can enhance cooperation and decisionmaking 2. Nigeria’s national culture; what implications will cultural differences between the United States and Nigeria have on your strategic plan? What difficulties do you anticipate, and how do you propose to deal with them? In Nigeria, business cultural include the social, legal, environment and political environment while approaching any strategy. Apart from business culture, Company has to maintain its ethical value in Nigeria through its social responsibility as well as it has to effectively provide its additional services to Nigerian flight network as the current issues of low wages to local workers and less equalization among them as compare to expatriates; therefore, they have to consider below points in their strategic plan which are different from American culture because this Questions and Answers 4 American Company like to run the airlines business in Nigeria as, Human Resource Management Practices in Nigeria (June, 2011); In Nigeria, Company has to build a public relationship of trust where Company should cover with local staff. Maintained Acquisition Agreement between Nigerian and American Company. Allowing local Nigerian communities, can embark to the company on the path to a stronger relationship and better business culture. Company need to include strong specific ethical climate control that is the part of corporate culture that would use to set the ethical tone for the Nigeria. Company need to include the concept of ‘principle climate’ that exist when Company’s employees interact with Nigerian government regulatory. Further the American Company need to make various changes for effective business outcomes as discussed below, Fajana, S. (2009): Company need to upgrade the environment which ruined through bad HRM process for local workers with low wages. Company should introduce environmental guidelines, specific to Nigerian where population is already too high to maintain but Company initiated its guidelines to benefit more local people. Company should work to develop better company practices to promote a higher sense of ethics and their climates in the workplace in Nigeria. 3. How much should the American company rely on local pilots and managers vs. Questions and Answers 5 expatriate pilots and managers? Keep the issue of potential local resentment of expatriates in mind. The business of Arik Air i.e. a Nigerian largest airlines operating company and has been dealing its airways business throughout the local/domestic, regional and international flight network. Company believed and hired expatriate to run its business especially its pilots whom belong to different geographical locations. Now, the Company is being acquire by an American Company and they believe that they would like to hire local employees including higher management. This American origin company thinks, they can earn more if hired staff are from local environment of Nigeria so that they can minimize the operating cost of human resource but for this step they have to consider the legal and effective guidelines of Nigerian human resource management (HRM) and have to manage the hiring process with considered requirement of new local employees. However, Company has to consider the old expatriate value whom are already associated with the Company. Company has to consider below points while hiring new local staff as well as managing the values of existing expatriates where they may create the issues of local hiring staff whom may be less skilled as compare of expatriates experienced staff whom can ignore to work with local staff, hence, Company has to give them understating; the value and benefits of hiring the local staff so that Company can easily take assistance from expatriates to provide training to local staffs prior to beginning the work. Moreover, there are following points which must be consider to rely on local staff as follows, Fajana, S. (2009): Initial Training Program Assistance for local staff hiring. Follow the rules and regulations of Nigerian HRM process. Questions and Answers 6 Government approved guidelines and regulations of Hiring process. Workplace environment equalization Maintained lifestyles Satisfied Wages to local workers. Such defined points could be acceptable for the American Company while relying on local workers because if local workers will happy with the HRM process of American Company then they can rely on local workers to provide satisfactory work. However, they have to monitor their work by expatriates so that to ignore or minimize the chances of wrong work process. References Budhwar, P. and Debrah, Y. (2004). Introduction: HRM in Developing Countries. In P. Budhwar and Y. Debrah (Eds.) HRM in Developing Countries. London: Routledge. Fajana, S. (2009). HR Management in Africa: The Social and Economic Framework, Personalfuhrung, 7, pp. 7888. Human Resource Management Practices in Nigeria (June, 2011). Journal of Management and Strategy. Vol. 2 No. 2. Doi: doi:10.5430/jms.v2n2p57. .
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