The Importance Of Internationalization In Enterprises

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Keeping organisation up to date is the secret of success for any company whether it is dealing in service department or product sector. Knowledge Is Wealth (KIW) don't want lose it's market reputation at any cost so, they are always looking for more opportunities to improve their education standards. Therefore, keeping in mind this thing, organisation intended to merge (affiliate) with some well known and well trusted institutes which are well established in different parts of the world. This merging intention was already under discussion by different countries like in Australia, Brazil, China, South Africa and United States who want to make a single education company named Knowledge For All (KFA) which would be more sound position than any single education providers. From Pakistan side after finding it's brilliant past record KIW is accepted to become part of KFA.

Introduction:

Galpin.T.J and Herndon. M (2000) explained that if any company want to merge with other firms in the same field then there must be honest communication among all of them at the same time they also need to keep the key peoples from each firm. Human resource play a vital role in improvement and development of organisation so, track of success need to be maintain even in case of newly merged or acquisition companies. KFA decided that head of each institution from each country would be the member of board of directors, so, it gives everyone equal opportunity to take part in it's development. KFA main goal is to provide excellent education standards at possible affordable cost and find out talented persons which would be proved helpful in producing famous names in future. Knowledge For All is not only a service company which simply provide education but all also an institute which teach the way of spending lives like a common social person, good citizen and many others. And all this require a team full of devoted members and human resource management because as I already mentioned well skilled staff means well established organisation.

In a newly established firm it is really difficult to coordinate with each and every employee but it's more hard in case of in new company which come into existence after merging or acquiring different companies specially from totally different regions. There are many hurdles in managing workers from separate nationalities and languages by keeping in mind that human resource is not being wasted.

Transnational Companies Model:

Library of Halexandria (2003) elaborated that now a days transnational corporations have become most powerful in economics and political terms they have much more impact on government gross domestic product. For example, the financial transaction made by the companies throughout the world obviously effect the currency exchanges rates and many other areas.

Source: available at; http://www.globalhroptions.com/mergers.htm [accessed 11 June 2010]

In case of transnational companies they need to adopt the same multinational organisations model for their development because it is proved as more effective. For instance, there is different strategy of product market used in different countries according to the culture of that specific region in multinational organisations, so, same strategy and structure is required here. "Large multinational corporations require an organizational structure that can house the usual business functions - finance, marketing, R&D, production, etc. - as well as those functions required for being successful beyond the domestic market. The most appropriate organizational structure will be determined by the overall global strategy of the firm, the relative size of international operations as compared to domestic operations, and the characteristics of the marketplace in which the firm competes. The four basic organizational structures are: International Division, Global Area, Global Product Division and Matrix" stated in article by Newman.M (2009).

Knowledge Management Plan:

Every organisation make strategies and policies to boost up firms performance , to have competitive advantage and to innovate some thing new, all these efforts of any company deals under knowledge management section. Usually KM ( knowledge management) is part of IT , HRM and many other departments because knowledge about every department matters a lot for management. Next step is about the advantages of KM, suppose you are driving a car and you have to go at far distance what would you need to be careful about at first? Obviously you need to check the petrol limit in you car engine, so, same is the situation with knowledge it acts like petrol in business engine to run it smoothly.

There are several benefits of knowledge management (KM) for any kind of business whether it deal with products or services, such as improvement in decision making, improve product efficiency and effectiveness as per customer demand, help in speed up innovation process, help in preparing for future risks and many others like enhance coordination and collaboration among employees. It is a fact that every human made system have some drawbacks which are needed to rectify on time to time basis, same is the situation with KM there are some risks and challenges which have to face by companies and require full attention to correct.

Annely.K (Unknown) argued that these are the common challenges which almost every organisation have to face such as, inaccurate data, wrong interpretation of data, irrelevant data, testing of hypothesis of data, difficulty in adoption of knowledge management solution and finally complex and large data about KM.

Now lets talk about Knowledge For All (KFA) company, first of all lets see what actually firm want? Company real aim is to become leader of all other education providers throughout the world with positive view in people minds. To implement strategies, to control the change resistance, to increase the competencies of the institution, organisation require knowledge management. No doubt, it is really important for KFA to considered KM as it's first priority if they want to survive and compete the global market. Rollet.H (2003) stated that knowledge in itself not anything but the way of use it an advantage over competitors. A newly merged company definitely brings something different from others like new strategies, cultures, skills and values. So, how can KFA achieve edge on it's rivals is the way it is using its knowledge. For instance, company need to use information technology, innovation and human resource in such a way that is not been used by any other organisation before. After that, it require to test the hypothesis whether the solution derived are applicable or not, if yes then keep it safe and wait for the best time to bring in market.

KFA need to share all his knowledge and strategies with all his members and keep in touch with them when to implement. For example, if one possible solution need to implement it require participation from all workforce, it means proper utilisation of human resource can be prove as competitive edge. If company wait to bring something new in market it have certain benefits but have some limitations as well like in this case if KFA wait that it would introduce a new method of technology in educations sector which is not been used before. Timely decision can be beneficial but it's difficult to predict that what competitors are thinking or launching new market at the same time when you are launching. Human resource management can be another action for knowledge sharing behaviour what does it mean is how people from different nations would collaborate and cooperate to each other. It can be advantage in a sense that every one want to be prominent and would work hard but on other side it limited understanding due to difference in languages.

Management Development Plan:

It is famous quote that human learn whole life and this learning process start from his birth and end on his death, same case is in organisation from where first day it start learning business techniques and this endless process continuous. At management level this learning process is much more important that how quickly managers learn from their previous mistakes and from competitors actions. This whole process of development at managerial level is known as management development. How development is made is another issue, there are few options available for that such as management training courses, informal learning and executive education which is from top to low management.

Source: available from; http://www.ace-alliedconsultants.com/competencies/organisation-leadership-and-hr/management-development [accessed 13 June 2010]

As we can see from the above diagram that management development consist of three parts, first is about the culture that how people work and behave during duty times, what they think about management, this need to be improved. Secondly, get rid from outdated methods and thirdly practice, because more you practice of something more you learn about it.

As Fee.K (2001) mentioned that training is an important tool in management development and can be and should be from executive level till lower level managers. It involve the objectives setting, checking the performance of each individual against these objectives and to improve all this performance different tools are used like training and appraisal. Next step is about how it is beneficial for organisation, first of all, productivity is enhanced because of more experience gained by staff through training and practice. Secondly, staff is motivated at a great extent due to considered important part of company. Thirdly, lower absenteeism and staff turnover because every worker is much more satisfied from his duties. Lastly, employees are more flexible to change and response it in better way instead of resist.

Vortan.J (2010) elaborated the development techniques which are used in on-site and off-site development of company. In off-site development there are formal development program, management education programs, outdoor wilderness training and employees skills development. On other hand, on-site development involves, coaching vs mentoring and some others. Formal lectures and seminars are usual part of formal development program, management education programs are also consist the specialised courses offered by universities to increase skills in managers. In outdoor wilderness training, employees are been taken outside the company premises for some adventures to overcome their fear of risk taking in business field and finally in off-site development emotional intelligence skill is developed that how managers and employee would react and perform in certain situations like conflicts among them or time deadlines. On- site development consist the two major factors whether the coaching is better for employees development or mentoring. Coaching is perform good when there is case of motivation and inspiration about workers but mentoring is helpful in human support and guidance.

There are several challenges which management development have to deal with such as resistance to change from staff end, communication gap and no action plan. Refusal to adopt the change is a great hurdle in the way of developing the management like some managers want to stay with old methods of work and to up date the company is the requirement. Some time miscommunication cause a great trouble in understanding the actual message conveyed by top management to middle or lower management. This can be control through sending the same copies in written form to all levels of management to avoid misunderstanding the message. Action plan is another challenge for management because if there is no exact line of action then it would be difficult to judge what actually company want to achieve.

In case of KFA (knowledge for all), it definitely require almost same sort of techniques to use in management development process because it is newly formed company consist of peoples from different regions and there perception would be obviously different as well from others. Proper strategy and action plan should be made for every region separately as per regions requirement and need. It would helpful in a sense that every director would deal with his own regions but their major vision will be same.

Kolb.D et.al.,(1986) stated the learning theory in assessing and develop managerial competencies. Firstly, learning needs of the managers are been assessed as per their competencies to find out that how effectively they can deal with complex environments in complex organisations. An approach in mapping the competency circle is a part experimental learning theory which involves the adoptions and learning. This theory is based of competency theory which is proved successful in differentiating between job roles and demands for all professions.

More trained and skilled staff any company have more it would progress, by using management development techniques like formal and practical training these skills can be improved. It is a benefit for KFA company if it got more talented workforce but it got some limitations same as in knowledge management that employees and managers may resist against the change. This resistance can be due to certain fears among workers such as, loss of job, loss of freedom, loss of authority and some others. What I recommend is to gain and maintain the staff members trust that everything would be for their interest and benefit and would cause no problem for them.

Human Resource Management (HRM) Challenges:

No doubt it is critical issue in every company that how to manage it's human resource that would give it a great performance with low cost and effort. But in case of multinational and transnational companies it is more complicated because different nations peoples are involved in it with different ideas, values, attributes, perceptions and culture. So, same case is here with KFA (knowledge for all) because merger is being taken place among the companies from different parts of the world. It is great challenge for HR manager to deal with such a complex situation which I tried to do. Let see what are the major issues and challenges which need to be keep in mind before move forward in managing workforce.

Edwards.T (2006) described that how the way companies from whole globe work together with different national systems and also discussed the way they deal with challenges of human resource management. Different kind of challenges are to face by all international companies as under:

Firstly, in cross country transaction the language problem is very common which cannot deal without a translator but each and every employee have equal importance in company which cannot be neglected. Another challenge can be employees relationship that there might be racism among workers on religious, colour, and values issues which need deal carefully that no body feel hurt.

Secondly, plan of action and strategies should be different to each community otherwise it will not be much effective and fruitful. Foe example people from Pakistan may need more training than peoples from advance countries like Australia and China. One more issue can be the cost issue that in China and Pakistan cost of labour is lower than Australia, so, it is up human resource manager that how he manage the workforce that companies overall cost is minimum.

Finally, Working environment is changing rapidly due to globlisation, knowledge management and management development techniques should be used perfectly with least faults. Otherwise it can impose adverse impact on company's performance.

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