Patton- Fuller Financial Statement Review Essay Example for Free

Patton- Fuller Financial Statement Review Essay The success of any organization is heavily based on its ability to appropriately handle every aspect of its financials. Those aspects include a range of financial activities that include the inflow of cash and the outflow of cash which can be affected by a number of events including the raising of revenue through products or services, investments, purchases, debts and sales to name a few. With the number events that can take place within a particular reporting period, it is important that those transactions be monitored and tracked so that year end reports can reflect the most accurate overview of a the organization’s performance. These events and transactions are recorded and tracked through a number of financial reporting referred to as financial statements. For Patton- Fuller Community Hospital, information regarding its financial activities is included within their Annual Report. This report is compiled from financial statements that include their Balance sheet as December 31 for 2009 and 2008(audited) and the Statement of Revenue and Expense 2009 and 2008 (audited). In addition to the audited balance sheet and the audited statement of revenue and expense, other financial reports were utilized by Patton- Fuller which includes Balance Sheet as December 31 for 2009 unaudited, the Statement of Revenue and Expense 2009 and 2008 (unaudited), the Statement of Retained Earnings and Stockholders’ Equity and the Interim Statement of Income (unaudited) though these reports were not included within the annual report. In comparing the audited and unaudited reports there were differences were observed between the two. For the balance sheets, the unaudited balance sheet reflects $128,867 under total assets whereas the audited sheet reflects $127,867. This difference of $1000.00 is the result of the change in current assets reported under the patient  account receivable whereas the net allowance for bad debts was increased. As a result of this change, the total current assets reported for 2009 changed in addition to the total amount of assets reported. Other differences were observed in the area of total liabilities and equity where the audited balance sheet reflects a decrease of $1000.00 which is a change from the unaudited reporting of $588,767 to $587, 767. In reviewing what the effect was of revenue sources on financial reporting, the facility may have performed determinations based on a contribution margin. Utilizing this would show how the organization has increased or decrease in sales, profits, and assets. Further review of the financial reports indicates that on the Patton Fuller Financial Statement there was a huge negative decrease in the Investment Income. This caused a -123.48% drop. Other sources of revenue showed a positive increase from 2008 to 2009. Further review of the full report reflects that findings that indicate that the sources of revenue and the expenses in 2008 were much lower than 2009. The unaudited expenses show that there was $41,391 difference between the two years. The expenses that increased within the two years were the salaries and benefits of employees, supplies needed, and utilities. Within this time frame from the point where there was a negative impact, the organization was able to increase revenue and turn around what had been a negative into a positive. Patton-Fuller Community Hospital has grouped revenues into one category and expenses into another. All the revenue is what they are making from providing services and the expenses are what they have to pay out to keep the hospital staffed, supplies, and running. Patton-Fuller groups there revenue by care settings and there are only two. Eighty percent of the revenue is from inpatient care and the other twenty percent is from emergency care or outpatient services. This type of grouping allows Patton-Fuller to see exactly what they are making for certain services they provide. All the financial reports generated by Patton- Fuller Community Hospital provide an overview of the company’s activities that will be useful in future planning, controlling, organizing and decision making. In addition, they provide information to internal and external auditors that demonstrate the organization’s ability to properly track funds that are received and dispensed. For other external users such as investors and creditors, these same reports provide financial data that demonstrates how well a company is performing and has performed in  the past. These reports are also important to employees, as the financial health of the organization is used to make determinations regarding raises, expansion and compensation. Overall review of the statements, including the annual report, shows the company’s ability to be transparent to both internal and external users. In doing so their reports serve as valuable tools that allow for improvement and continued growth to occur based on the organization’s mission and goals. References University of Phoenix. (2015). Week Three Learning Team Assignment: Virtual Organizations. Retrieved from University of Phoenix, HCS/405- Health Care Financial Accounting course website. Baker, J. Baker, R.W. (2014). Health Care Finance: Basic Tools for Nonfinancial Managers, Fourth Edition. Jones Bartlett Learning. Retrieved from University of Phoenix, HCS/405- Health Care Financial Accounting course website.

Eating Disorders Essay -- essays research papers

Eating Disorders An eating disorder is a way of using food to work out emotional problems. These illnesses develop because of emotional and/or psychological problems. Eating disorders are the way some people deal with stress. In today’s society, teenagers are pressured into thinking that bring thin is the same thing as being happy. Chemical balances in the brain that may also result in depression, obsessive compulsive disorders, and bi-polar disorders may also cause some eating disorders. Other causes may be emotional events, illnesses, marital or family problems, manic depression, or ending a relationship. Over eight million Americans suffer from eating disorders. Over 80% of girls under age thirteen admit to dieting, one of the main factors linked to eating disorders. Although eating disorders are mainly found in middle- to upper class, highly educated, Caucasian, female adolescents, no culture or age group is immune to them (EDA HP, n.p.). The three major eating disorders are anorexia nervo sa, bulimia nervosa, and compulsive over-eating or binge-eating. The most dangerous eating disorder is anorexia nervosa. â€Å"Anorexia nervosa translates to â€Å"nervous loss of hunger†. It is a mental illness involving the irrational fear of gaining weight. Usually, the victim is a perfectionist, although he or she may suffer from a low self-esteem. In general, a member of the opposite sex triggers anorexia. The first disease resembling present-day anorexia is one called â€Å"Anorexia Mirabilis,† or â€Å"Miraculous lack of appetite.† It is described as McCurry 2 a disease of insanity, possibly like cancer, tuberculosis, or diabetes. It was believed to arise from a diseased mental state. Sir William Gull, a physician to England’s royal family, said that these anorexics were suffering from â€Å"a perversion of the will† (Silverson). In 1888, a French psychiatrist, Charles Lasegue viewed anorexia from a social standpoint. He believed it was a way of rebelling. The Children of this time were expected to and forced to clean their plates. They were also accustomed to well-regulated meal times. Another cause of the disease in the Victorian era may have been women’s expectations, such as to remain home after childhood. Their only job was to get married and enhance the family’s social status. No emotional outbursts, such as temper tantrums were permitted. The family life was suffocating, but a y... ...t, as the disorder is often a result in lacking in coping skills. Symptoms of binge eating include: eating more rapidly than usual, eating until uncomfortably full, eating large amounts when not physically hungry, eating alone because of embarrassment of the quantities of food consumed, and not being able to purge after consuming large quantities of food (Dobie 1). Because it is not always recognized as an eating disorder, compulsive over-eating may have the most adverse effects on health. McCurry 6 Anorexia nervosa, bulimia nervosa, and compulsive over-eating are extremely serious illnesses that must be recognized before they can be treated. The media is blamed for so many distorted images of the body. People are beginning to refuse the idea, however, that thinner is better. Body shapes are known to go in and out of style. In the 1800s, plumpness was a sign of wealth and class. Thinness became a sign of beauty in the 1970s with the British super-model Twiggy. There are many treatments for eating disorders today. One of the hopes of many psychologists is that humans will begin to feel happy about the way they are, even if it is a little bigger than the media portrays as ideal.

Benefit and Compensation

This company is a commercial contractor with annual revenue between 10-20 million dollars (PC One Source Contracting, 2013). According to their website, PC begins part-time general laborers at $10. 50 per hour (www. Vociferousness. Com). They offer medical benefits, vacation pay, and merit increases for full time employees. Management and project leaders are also offered a car allowance, and retirement plans (www. Vociferousness. Com). Bellow Disaster Restoration is an international commercial construction company with operations in both Michigan and Arizona.Bellow currently creates approximately $20 million in revenue within the Detroit area (Bellow Property Restoration, 2013). They offer pay structures (depending on position) within both markets averaging from minimum wage to $1 00,000 per year (Bellow Group Salaries, 2014). They offer incentive programs for early completion of projects, bonuses for exceeding sales goals, and merit increases for exceeding performance or promotions. In addition, Bellow offers medical benefits, accrued paid time off, paid sick leave, retirement plans, and car allowance and travel expense reimbursement for applicable employees (Bellow Group Salaries, 2014).According to Glissando. Com, the national average wage for commercial contractors (not including additional benefits in a total compensation package) is $65,239 (Salary: Contractor, 2014). In both markets, competitors of similar size are offering wages between minimum and approximately $100,000 per year (dependent on position). Competitors also offer compensation packages with merit increases, health insurance, paid vacations, productivity incentives, retirement plans, and are within the national average compensation of $65,239 for commercial construction contractors.This market survey and evaluation will allow Clayton Commercial Construction to better prepare a competitive and relevant compensation package for employees of the Detroit, Michigan and Arizona operations. Compens ation Structure and Position in Market Since the company wants to be comparable to other construction companies it is easier to determine the pay structure that can be used for the company. This can be achieved by using the practice of benchmarking. This can be done one of two ways.The company can take a direct approach, go around to different companies in Arizona, and see if their human resources department will give them a look at how theirs works. Another way to benchmark would be to use the internet job boards to see what current salaries in the area are going for. The best recommendation would be to grade each job on a points scale to decide difficulty and importance. From there decide which jobs have an average salary and which ones should have a pay scale based on time in service and skill level.From there the company can identify how many positions for each job title the will have and can factor in the projected payroll of the company against the projected gross value. This will allow for growth within the company as well staying competitive with other companies. For the expansion to Arizona, the company will have to look at trying to undercut prices Of competitors. The positioning will be weak and should look to specialize in smaller jobs. According to central. Com (2014) the top 10 companies billing is from $500 million to $47 million.This company currently nets about 20% of the tenth ranked company's billing amount. Positioning themselves as a smaller company that offers a more intimate experience is the marketing strategy to go with. People like to do business with companies that give the impression of personal touch. Bigger companies can lose this eel and open the door for other businesses. This is where Clayton Commercial can really make their money. Compensation and Benefits Strategy Expanding into a new market presents many challenges, but perhaps the most critical element is recruiting excellent talent in the new market to ensure successful gr owth.Ensuring that Clayton Commercial Construction is attractive to potential hires is the key goal behind designing a competitive compensation and benefits strategy. Our recommendation for Clayton is to provide a wide variety of options to employees and then allowing them to hose the benefits they want to pay for. We recommend assigning costs to each benefit, and we will provide employees with a budget of â€Å"Benefit Dollars† to spend on the benefits they care about most. Employees may go over these â€Å"benefit dollar† budgets, but they will be responsible for extra expenses beyond their budget.We recommend allotting employees 20% of their annual base salary in â€Å"benefit dollars† to spend how they choose, and then charging employees based on the benefits they take. This cafeteria-style approach will allow Clayton to save money by not paying for benefits that are r low extreme flexibility to Clayton employees. It will also reinforce with the employees of Clayton just how much these benefits cost much off benefit the company is paying for. Morale and employ appreciation will be higher and employees will be less likely to tall benefits packages for granted.Regarding compensation, we erect Clayton utilize market research to set and maintain comparable Our preliminary research indicates that in Arizona, a typical front construction worker earns roughly $31 ,OHO per year (Indeed. Com skilled tradesman makes $46,000 per year (Salary. Com, 2014), an, rings home $120,000 (Salary. Com, 2014). In terms of raises, rata annual raises, we recommend that Clayton conduct annual mark into comparable salaries and then adjust pay as needed to stay IR with industry norms.Claptrap's plan is to increase workforce size which constitutes 130 employees. Assuming we have 1 director, 45 skilled laborers, 60 unskilled laborers, and 21 support staff, ‘M manage three different full construction teams. Each team will h manager, 15 skilled laborers, 20 uns killed laborers, and seven soul resulting in a per-team annual cost of roughly $1. 7 million. Clap dated that they are aiming for a net revenue growth of -3%, we r this team aim for exact revenue neutral, so they must earn $1. 7 revenue to offset the increased cost.Performance Incentives and A performance incentive system is and merit pay is a way to retail employees and should be used to recruit top employees. Enema) set goals for their employees that are attainable and realistic, who turn motivate them to work harder to attain the goals set by the Some incentives to look at would be bonuses, stock, and time off Merit pay is used frequently amongst businesses to pay their me based on performance. In order for the merit pay program to be employers must assure that the reward is delivered to the top en will be prominently healthier than raises given to average or subs employees.The theory of performance-based compensation for is that they should be compensated generously for out perf ormer workers, but if a worker performance is ordinary, that worker cord should show that. Compensation law The primary federal law to be aware of when it comes to compel benefits is the Employee Retirement Income Security Act, or IRIS sets the standards ensuring employee benefits plans are fair and mound and establishes employer obligations to provide benefit AR retirement plans (United States Department of Labor, 2009).Thud requires persons managing plan funds to refrain from conflict of transactions, disclose information on conditions of the plan, and the funds of the plan to the exclusive benefit of participants. ERE! Codifies provisions for COBRA, which gives former employees of large companies the right to continue health coverage at previous group rates, well as establishing rules for exclusions relating to preexisting conditions (United States Department of Labor, 2009). With regard to state law, there are a few requirements: Clayton is required to pay employees twice a Mont no more than 16 days apart, on regularly scheduled paydays.Employees w work beyond 40 hours in a week must receive 1. 5 times normal base and characteristics such as sex, ethnicity, and religious preference may not be considered when determining salaries (State Bar of Arizona, 2014). Conclusion To assist with the expansion to Arizona, it was important for Clayton Commercial Construction's strategies are comparable to other commercial construction business within the area. Team a made recommendations WI sat considerations with the compensation laws, benefits, incentives and marketing to assist Clayton Commercial Construction to excel in their new location.

Aspects of Human Resource Management globalization - Free Essay Example

Sample details Pages: 15 Words: 4457 Downloads: 3 Date added: 2017/06/26 Category Management Essay Type Analytical essay Did you like this example? Executive Summary: The report aims to discuss aspects of Human Resource Management in light of the ever changing business world given the globalization of businesses today. Globalization has seen changes in the way businesses work and are expected to deliver investor value. Companies started competing not just with local competitors but with organizations across continents which forced companies to relook at continuously innovating and providing a unique value to its customers to retain them. Don’t waste time! Our writers will create an original "Aspects of Human Resource Management globalization" essay for you Create order Talent Sourcing and Talent Development within an organization have become a science that identify and accept that diverse employee base form the backbone of a business and are responsible for contributing towards achievement of organizations global goals and directly impacting competitiveness and delivering that Investor value. This report will discuss: The concept of Globalization The increasing diversity of the workforce The changing nature of the workplace The impact of Human Resource Management functions in work organizations. Table of Contents:- 1. Introduction 2. Main Body with examples 3. Critical Success Factors with examples Recommendations 4. Conclusion 5. References Human Resource Management in a Globalized Economy Introduction Early in the 1800s during the times of Industrialization, the approach to managing workforce was primitive task drive approach. Historically, Henry Fords assembly lines and Studies of Frederick Taylor such as the time and motion studies thought of improving productivity by putting employees in line with mechanics. They tried to boost productivity by designing the way work is carried out. They focussed purely on productivity since productivity was what gave profits and therefore competitive edge. Workforce was put them in the same league as machines inviting organization conflict and distraction from the goal. As globalized environment changed the rules of the game, Organizations realized that employees and their talents is the single most important supply of sustainable competitive advantage. Employees are the ones that deploy scarce resources optimally. To survive and to succeed, organization need to leverage its human resource capitals talents to develop new products and servi ces and creating value for customers. This marked change in attitude of managements saw the emergence of concept of Global Human Resource Management which characterizes implementation of personnel policies to maximize objectives of organizational integrity, employee commitment, flexibility and quality at a global level. Global Human Resource Management hence becomes very important since globalization and international operations bring with them challenges beyond a simple Human Resource Management program at a local level. Global Human Resource Management not only covers International recruitment Appropriate training and development Deployment of these resources But also goes beyond simple HRM in maintaining affable international industrial relations. With international operations, managing the employee base worldwide has its own challenges. P Morgan: There are 2 sets of variables when it comes to HRM in for an International Organization First -employee types Second Political, labour laws, culture, legal environment, economic, and practices prevailing in different countries A successful HRM model for an international organization is the successful interplay between these 2 sets. Clearly there is a need to go beyond basic HRM practices to include: More functions and activities In depth wisdom of employment law of the host country Close involvement with employees personal variables Provide for external influences Exposure to newer hurdles and risks Managing differential pay packages Managing ethnic, gender differences More liasoning activities More travel and coordination Higher management of unknown risk variables beyond the country where the headquarters are based It is imperative that Human Resources Management models are deployed in a global context to ensure success. Main Body The Concept of Globalization: While Global trade itself is not a new concept, Globalization is. Globalization can be defined as a process of trade and investment transcending political boundaries undertaken by an interaction of people, processes, entities and spurred on by advances in political systems, technology, business ethics and affecting culture, environment societies leading to cross border prosperity. International trades have been undertaken historically. Traders have traded goods and services over large distances travelling by land and sea. Eg, The silk route that connected the Western World with Central Asia China during the Middle Ages. As time progressed further, we see that cross-border trade, investment immigration boomed. Eg. Since the middle of the 20th Century to today world trade has exponentially grown by 20 times. Only in the last 5 years of the 20th Century, foreign investment currency flow went to US$ 827 billion from a meagre US$ 468 billion. This has had an impact on fiscal policies of governments that have opened up its economies in a controlled manner, both domestically as well as beyond their borders. Eg. The 1991 Financial Budget given by then Finance Minister of India, Dr. Manmohan Singh was figuratively the door to globalization for India. India hasnt looked back since in terms of its growth and prosperity. India adopted a free-market economic system. This greatly increased its own production potential and created a bouquet of opportunities for its own companies and organizations across the world for international trade and investment. Companies started growing by virtue of the geography of their businesses and operations: HRM in the face of such Globalized businesses: In such a dynamic environment today Human Resource Management in a global paradigm involves the manpower planning of staffing requirements the world over, selection of the right candidates, training development of employees for global operations. Since it is established that human resources form the backbone of any strategy, implementation of any strategy to succeed globally with Human Resource Management at its core can provide a strategic competitive edge. Human Resource function in this environment has to provide a support function to line manager by providing guidelines, searching, training, and evaluating employees. With an effective HRM function deployed, the organization would be able to leverage the knowledge, experiences and the skills of its distinctive employee bases the world over. The Increasing Diversity of the Workforce: As Globalization gains steam and becomes the norm, the employee base of multinationals has become varied and rich with nationals from all over the globe. Human Resources across companies have become homogenized, enriching the organizations with depth of knowledge about variables affective markets both within the countries as well as between them. The most successful organizations are ones which utilize this resource to the maximum. Having an experienced employee from a remote market on the team is a natural consequence towards better understanding new market dynamics and new consumer behaviour. Culture in different countries or the mode of doing business in different countries is also different Deal Focus Relationship Focus Country wise distribution: Formal Culture Informal Culture Country wise distribution: Therefore HRM today for an international organization, has to consider Differences in HR practices in the local organizations Perception of HR as a function. Attitude and actions of headquarters towards HR Resistance to change in a myriad of different situations Cultural differences in teaching and assimilating styles The Changing Nature of the Workplace: A diverse organisation will out-think and out-perform a homogeneous organisation every single time. A. Lafley, CEO Procter Gamble Global competition presents a case for Global co-operation. Today, more than ever before, employees find themselves rubbing shoulders with someone from a different culture, race and society on an everyday basis. HR departments in these multinationals have to recruit, develop and retain people who have vastly different backgrounds. This has resulted in new skills to succeed such as sensitivity and other relational aspects. This is termed as cultural intelligence. Cultural intelligence is defined as the capability to adapt effectively across different national, organizational and professional cultures (Earley, Ang and Tan, 2005). Today employees across industries are given job roles globally, taking them around the world. In this new environment employees from home country as well as the expatriate have to learn how to work with each other given that they not only think and communicate differently but also execute differently. The Human Resource Departments need to develop their cultural intelligence to manage this diversity in their companies. The departments have to allow for newer challenges in the face of international employee deployment such as Managing international assignments Employee and family adjustment Selecting the right person for a foreign assignment Culture, communication and gauge Language and communication Staffing Function in an International Organization: Staffing in an international organization goes beyond simply forecasting requirements and selection of the right candidates to fit a job description. It is also a tool to develop and promote the organizations own value system and culture. In an international scenario the following models could be deployed: An Ethnocentric staffing policy A Polycentric staffing policy or a Geocentric staffing policy ETHNOCENTRIC STAFFING POLICY: In this policy, top management positions filled by parent-country nationals. It is actually the best suited to international organizations. Advantages: If the host nation does not have qualified managers, the vacancies can easily be filled The culture of the HQ is easy to spread. Easy transfer of key skills and operating procedures Disadvantages: May result in bitterness in host country Deterrent to cultural diversity POLYCENTRIC STAFFING POLICY When this policy is deployed Host-country nationals manage subsidiaries and parent company nationals hold key headquarter positions. Multi-domestic organizations can benefit from this Advantages: Help rich cultural diversity Implementation is cost effective Easy transfer of key skills and operating procedures Disadvantages: Limits chances of host country employees getting exposure outside their own nation Possibility of gap in mission, values and work culture between HQ and host country operations GEOCENTRIC STAFFING POLICY This policy seeks best people, regardless of nationality. Transnational organizations and Global entities can benefit from this Advantages: Optimum deployment of optimum resources Employees get exposure to different cultures Creates a centralized value system Disadvantages: Local immigration policies may inhibit 100% deployment Higher costs associated with training and relocation May require complex Compensation structures to succeed. The Expatriate Dichotomy: Further when a citizen of one country works in another country, HRM needs to take care of a myriad of issues without which there is a strong chance of failure and a premature return of the employee to his home country The costs associated with failure are not low and are generally estimated at three times the expats annual salary in addition to the costs associated with relocation The issues that can crop up when expats are deployed: Immediate family may not adjust to a new environment The employee may not adjust Other personal issues Culture shock May not be able to cope up with bigger responsibilities Based on how complex the business is and strength of the HR function, it is important to deploy the ideal staffing policy. Recruitment and Selection: International Labour Market Sources Parent Country Nations (PCNs) PCNs are managers who are citizens of the Country where the MNC is headquartered. The reasons for using PCNs include The desire to provide the companys more promising managers with international experience The need to maintain and facilitate organisational coordination and control The unavailability of managerial talent in the host country The companys view of the foreign operation as short lived The host countrys multi-racial population The belief that a parent country manager is the best person for the job. Host Country Nationals (HCNs) HCNs are local managers hired by MNCS The reasons for using HCNs Familiar with the culture, language Less expensive, know the way things done, rules of local market Hiring them is good public relation Third Country Nationals (TCNs) TCNs are managers who are citizens of countries other than the one in which the MNC is headquartered o r the one in which it is assigned to work by the MNC. The reason for using TCNs These people have the necessary expertise They were judged to be the best ones for the job. Selection procedure of Expatriates Use of selection test Technical Ability Cross cultural requirements Following traits are identified s predictors of expatriate success Cultural empathy Adaptability Diplomacy Language ability Positive attitude Emotional stability and maturity Family requirements Multinational requirements Management philosophy or approach The mode of operation involved The duration of assignment The amount of knowledge transfer inherent in the expatriates job in foreign operation Language skills Expatriate Success factors Willing and motivated to go overseas Technically able to do the job Adaptable Good interpersonal skills and be able to form relationship Good communication ability Supportive families Adaptabi lity to cultural change Work experience with cultures other than ones own Previous overseas travel Knowledge of foreign language Ability to integrate with different people, cultures, and type of business organisation The ability to sense developments in the host country and accurately evaluate them The ability to solve problems within different frameworks an from different perspectives Sensitivity to subtle differences of culture, politics, religion and ethics in addition to individual differences Flexibility in managing operations on a continuous basis, despite of lack of assistance and gaps in information Globalized HRM role Two major types of adjustments that an expatriate must make when going on an overseas assignment. Anticipatory adjustment Carried on before he leaves for the assignment It is influenced by following factors predeparture training pervious experience In-country adjustment Takes place on site It is influenced by following factors Ability to maintain a positive outlook in high pressure Jobs as reflected by the role he plays in managing, authority he has to make decisions, newness of work-related challenges and the amount of role conflicts Organisation culture Non work factors toughness with he faces new cultural experience, family adjustment with new country Socialisation factor to know what is what and who is who Expatriate Training and Development Need for Training to Expatriate Cost of expatriate failure is very high To build a team of internationally oriented, committed and competent personnel Minimize personal problems such as politeness, punctuality, tactfulness, orderliness, sensitivity, reliability, tolerance and empathy Improve overall management style Pre-departure Training- Emphasises on cultural awareness and business customs of the country of posting to cope with unexpected events in a new country. Post-departure Training helps in minimising culture shock and depression that usually sets in a new country and culture. Cultural Integrator An individual who is responsible for ensuring that the operations and systems are in accordance with the local culture. He advises guides and recommends action needed to ensure this synchronisation. Even though expatriate are trained before being sent abroad, they are still not totally prepared to deal with the day-to-day cultural challenges because t hey lack field experience. He is responsible for handling problems between the subsidiary and host cultures. He may be from parent country or host country who has intimate knowledge of the companys culture and can view operations from both sides. He can only advice ore recommend a course of action. Management philosophy and training Ethnocentric companies will provide all training at the HQ. Polycentric companies will rely on local managers to assume responsibilities for seeing that the training function is carried our wherever appropriate. Geocentric companies organise training courses in different parts of the world, where a particular function is best carried out. Regiocentric companies organise training courses in different countries of the region. Cultural Awareness Training There are five types of pre-departure training Area studies that include environmental briefing and cultural orientation Cultural assimilators Language training Sen sitivity training and Field experience To decide the rigour and level of training, following factors are important degree of interaction required in the host culture similarities between home and host cultures If interaction is low and similarities are high, then training should be on task and job related issues rather than culture related issues. If interaction is high and similarities are low, then training should be on cross cultural skill development as well as task. Preliminary visits average duration will be about one week A well planned overseas trip for candidate and spouse provides a preview to access their suitability for job, introduction to host country management, accommodation required, and schooling facilities available. Language training Types of cross cultural training Environment briefing about geography, climate, housing and schools Cultural orientation to familiarise with cultural institutions and value system of host countr y Cultural assimilators to provide intercultural encounters Language training Sensitivity training to develop attitudinal flexibility Field experience to make expatriate familiarise with the challenges of assignment Cultural Assimilators It is a programmed learning technique that is designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs and values of another culture. These assimilators are developed for one culture where the candidate is currently working and the other culture is where he is proposed to be posted. Type of assimilators The trainee read a short episode of cultural encounter and choose an interpretation of has happened and why. Critical incidents: to be identified as a critical incident, a situation must meet at least of the following conditions: An expatriate and a host interact in the situation The situation is puzzling or likely to be misinterpreted by the expatriate The si tuation can be accurately interpreted if sufficient knowledge about the culture is available The situation is relevant to the expatriates task or mission requirements Compensation Management Factors Influencing Compensation Programmes Compensation decisions are strategic decisions and play a key role It should be consistent with overall strategy, structure and business needs of MNC It must attract and retain the best staff It must facilitate the transfer of international employees in a cost effective manner. It should give due consideration to equity and ease at administration. It requires the knowledge of employment and taxation laws, customs, cost of living index, environment and employment practices, the knowledge of labour markets and industry norms, foreign currency fluctuations. Paying Expatriates: unique problems Discrepancies in pay between PCN, HCN and TCN The need to vary expatriate compensation depending on the life cycle of the expatriates family Compensation issues related to re-entry into the parent country organisation Approaches to Expatriates Compensation Going Rate Approach Base salary remains linked to the salar y structure of the host country. Required information is obtained through compensation surveys and published information. This approach is favoured by polycentric organisation Advantage Equality with local nationals and expatriates of different nationals Simple approach Attract the nationals of PCN and TCN if location is a high-pay country Disadvantage Transfer from a developed country to a developing country Fighting for getting favourable posting and resisting low pay country postings Problems when the expatriates repatriated to the home country An export or import or franchising arrangement Company appoints an export manager who reports to chief of marketing and all operations concerning export and imports are controlled by the home office Balance Sheet Approach It links the salary of expatriates and TCNs to home country salary structure. Assumption Foreign assignees should not suffer financially due to transfer Salary package is d ivided into goods and services, housing, income taxes and reserve. Cultural Impact and Compensation Policy National cultural difference High power-distance the compensation system should reflect hierarchical divisions in the firm. Low power-distance the salary system should be more egalitarian and performance based. Individual cultures rewards should be given on an individual basis. Collectivist cultures they should be team based. Culture with high masculinity compensation policy focus on social benefits, quality of work life and equity. Culture with high uncertainty avoidance structured and consistent pay plans are preferred with no variable plans and discretionary allocation. Culture with low uncertainty avoidance pay should be linked to performance. Performance Management in International Organisations Performance Management and its link with other HR Processes Reward Management Human Resource Planning Training and Development Process Relationship with strategy Multinational Performance Management Whole vs part Non-comparable data Volatility of the international environment Separation by time and distance HQ-subsidiary interdependence Ethical and legal issues Market Maturity Performance Management of expatriates decisions and play a key role Setting clear goals for each unit, each department and each employee Goals must be mutually supportive and balanced for long and short term needs. Setting standard and measurement criteria for evaluating each type of goal Formal monitoring and review of progress towards these objectives Using the outcomes of the review process to reinforce desired employee behaviour through differential rewards and identifying training and development needs. Variables that Influence Performance of Expat riate Compensation Package Nature of Assignment Role Clarity Psychological Contract HQs support Environment of the Host Country Cultural Adjustment Critical Success Factors Recommendations: The Impact of Diversity and the Changing Nature of the Workplace on Human Resource Functions in Work Organizations: Given the era of Globalization, managing diversity at the workplace has become a business issue for the HR Department and no longer simply a moral, social, or legal concern. The challenge is no more creating a diverse employee demographic, but empowering one that already exists due the natural global nature of the business. Despite all the hype around Diversity and the pros of having a multicultural workplace, organizations still tend to reflect: Soft implementation of highly expensive Diversity Management Programs A poor gender ratio when it comes to higher managerial positions Poor integration of disabled people into the employee base. Senior management teams not reflecting ethnic diversity. Some critical success factors to ensuring that diversity is leveraged well by organizations include: A) Clear organization wide understanding of the business case for Diversity. The HR department along with the senior management and the line managers need to be clear about the need to be diverse and embrace new cultures and ethnic backgrounds into their folds. Going beyond corporate trainings and having blurred notions of how multi-cultural employee base would help the organization to gain competitive edge over local competition in remote markets, all levels of the organization need to clearly articulate how a diverse human resource base would help reach the organization goal and hence their own individual goals. Further they understand that a multi-cultural workforce can improve their organizations adaptiveness and change readiness. This would clearly improve the culture within the organization to recruit, develop and retain the best staff. B) Assessment of Current Situation. HR departments that are particularly successful at managing diversity routinely spend time, money and effort in gauging the ever changing composition of the workforce given geographical expansions, attrition and new recruits. They routinely assess not just numbers associated with the above dynamics but also behaviours, and culture associated with these changes. Eg. Eastman Kodak created a specialist external diversity panel to conduct an outsider review of the current situation. The Management of Eastman Kodak assessed recruitment policies to address cultural imbalances and even cultural blocks to retaining and developing a multi-demographic employee base. Without the above HR Departments would only end up paying lip service to managing diversity or spending huge amounts on expensive specialist corporate trainings on managing diversity without actually creating a basic inclusive work culture. Ergo, wasting time and effort on initiatives that are unsustainable in an environment where self assessment itself is not done. C) Managing Diversity is a top-down approach. Successful diversity management initiatives are ones that have high visibility of the senior management team. Eg. Back in mid 90ies, Lou Gerstner identified diversity as a key strategic initiative for IBM globally. He was a strong proponent of leveraging differences to address new markets. He established eight task forces representing various ethnic groups, allocating executive sponsors from his direct reporting team and insisting on specific measurable results within specified timelines personally reviewing progress on the results. Many HR departments have gone beyond simply including diversity management in their employee handbook and actually championed setting up panels and councils that include senior executives. Diversity management may require fundamental changes to the very culture of the organization and hence require stewardship by the senior executives. D) HR initiatives need to promote cultural harmony rather than address cultural imbalances. Initiatives from HR need to promote creating a multi-cultural environment. Simply having reservation seats and quotas and fancy cultural training and diversity training is not enough. HR Departments need to ensure that minorities have the same opportunities and such initiatives are an integral part of their day to day working rather than simply an extra curricular task! Ensuring objective appraisal systems, rewards and recognition and universal training and development opportunities is key to promoting an all encompassing holistic HR approach. E) Objective assessment of the Diversity management initiative and scientific assessment of programs are key. Many HR Departments have succeeded in developing measurable diversity management programs. E.g. the Hyatt Hotel Group the world over ties approximately 15% of the bonus potential to diversity goals. HR Departments that have been successful in managing diversity have translated it into a core competency used to assess the performance of management. F) Diversity Management principles are all encompassing and wholesome enough for everyone to participate. If the Diversity Management programs are only a bastion of the senior management, the entire exercise would be superficial and unsustainable. In order to result in successful recruitment, retention and development of employees in a globalized world, it is important that it is an inclusive program cascading throughout the organization. E.g. IBM created specific task forces but more importantly invited participation in the form of inputs to help these task forces in creating an inclusive culture. Managing diversity and the every changing workplace in the face of globalization is not the prerogative of the senior management alone but is to be implemented at the grass root level where managing diversity to retain and recruit top talent is a challenge in itself. These critical to success factors for managing diversity are not complicated models however they are tough to actually execute and require a motivated effort on the part of the Human Resources team and buy-in from the entire organization. Conclusion: Clearly Globalization has brought about a paradigm shift to International Trade providing it with a great boost. I feel, employees form perhaps the most critical resource base since they are the ones to deploy other resources and hence, in todays Globalized world, competitive advantage can be gained only by effective Human Resource management. A natural caveat to be issued in such a varied workplace is greater requirement from organizations to focus on differences between ethnic and cultural groups in attitude and performance at the workplace. Diversity requires Human Resources Department to find similarities and recognize differences as workplaces get more and more diversified. The test for Human Resource Departments therefore is to manage and appreciate the diverse workforce. With a multinational approach to Staffing Recruitment and Selection Compensation Management Performance review and management An organization can leverage the human potential to su cceed regardless of the geography and the ethnic composition in its employee base. For truly the organization of today, the difference between success and failure can depend on the recruitment and retention of the most skilled, qualified and talented staff from the world over, creating a unique and strong multi-cultural backbone to get the valuable competitive edge.