Ihrm Cases free essay sample

International recruitment, selection and repatriation18 Brochure263 Conclusion26 Bibliography28 Chapter 1: Introduction Avon is a beauty company that sells her products all over the world. â€Å"Beauty is about women looking and feeling their best. It’s about championing economic empowerment and improving the lives of women around the world. † This report explains the HR related situations concerning Avon. Avon in the VS is also compared with Avon in China. The situations that can occur in China are evaluated. The first chapter explains the internationalization of the HRM and strategic IHRM. In this chapter, the drivers of the internationalization of Avon are defined. Also the strategic HRM decisions are explained. The next chapter explains the international combination of Avon and the possible HR related problems. Furthermore, the differences in employment laws and labor relations between Avon in de VS and China are defined. Chapter 5 explains the role of international ethics, corporate governance and sustainability. The last chapter defines the international recruitment, selection and repatriation in both the VS and China. Finally, a brochure and conclusion are added. The brochure makes clear what an expatriate should prepare and know before going to China and the conclusion summarizes the findings of this report. Chapter 2: The internationalization of HRM and strategic IHRM 2. 1 Drivers of the increased internationalisation of business for Avon The following forces are the drivers of the increased internationalisation of business for Avon: * Trade agreements Trade agreements between countries makes it possible for Avon to expand to all the countries where Avon operates at the moment. China is a member of the World Trade Organization, which made it an advantage for Avon to do business with this country. * Rapid and extensive global communication The technological revolution and its digital reformation have made global communication easier, quicker and cheaper. Also, information about how people live, think and want is spread all over the world. Through this change, Avon can adapt to the needs and rules in the specific country. Also, it is possible to make contact with employees in other countries and sell the products over the web. Because of this, Avon became aware of intercultural differences and is with this also able to get the company’s employees well trained. This is important because of Avon’s ‘direct selling’ aspect. * Improving global education and global talent pool Avon strives to get the best employees as possible. They give them training, but the improving education around the world makes it possible to get good educated people from almost anywhere in the world. Enabling them to produce world-class products and services. * Homogenisation of culture and consumer goods The integration of cultures and values through the impact of the trade agreements and increasing global enterprises makes that the consumer demands are almost common. This makes it possible for Avon to place her products around the world. Nevertheless distinct differences in culture across countries remain and firms like Avon need to be sensitive for these differences. 2. 2 Typical international enterprise for Avon Avon sells through direct selling, catalogues, mall kiosks and a web based store. Because direct selling is Avon’s major strength, they operate through international alliances, partnerships and consortia. Avon has a well-established sales network that does the direct selling like door-to-door or catalogue selling. People register at Avon and will become an independent representative, selling Avon products. The self-employed person will get training and guidance, but has to sell the products by himself. The only help he gets with this are catalogues and samples. 2. 3 Avon’s choice of market entry for China China is a large country where Avon has lots of opportunities. China has a large population or maintain a well-educated middle class which is a prerequisite for the toiletries/cosmetics industry. One of Avon’s specialties is adapting the needs of the woman of the specific country. The target group are middleclass woman with an average income. This will help Avon expand their workforce and market share. The competitor in China is Olay for Avon, which is bought by Procter amp; Gamble. Olay has almost the same view on beauty products. They create a beauty product for her—one that could not only moisturize her skin, but could also give her the feeling of being beautiful and feminine. China is a masculine country according to Hofstede. This means that they give a low quality in life. Avon will show the woman that the quality in life can be higher by using the right products. Avon will enter the market through partnerships and consortia. This is the most effective way for them because the door-to-door sales are forbidden in China. When they open different shops through partnerships, they still will have the opportunity to create new and loyal members in China. 2. 4 Dominant MNE business strategy for Avon The ‘transnational business strategy’ will be dominant for Avon. The company uses an approach that attempts to maximize both responsiveness and integration. They are global and multi-domestic at the same time. The strategy differs from the global (head-) firm in that the company works hard to localize, to be seen as a local firm with global expertise, technology and resources. Avon adapts his business model because of local considerations and supply chain issues. This helps Avon to expand the workforce, as well as the market share. 2. 5 Adopted international orientation and MNE business strategy by Avon The strategy ‘geo-centrism’ will be adopted by the headquarters of Avon. Avon’s goal is to create a global network and a preference for following a transnational strategy that is integrative and interdependent among various elements of the global organization. For example, Avon has 4. 4 million independent representatives in global markets. For large and growing companies, this strategy has become almost necessary. A competitor of Avon, Unilever, developed the same international orientation. Just like Avon, this company borrows best practices from around the world, rather than giving preference necessarily to either headquarters or local practices. It’s necessary to operate as a global firm, but to look at the local preferences at the same time. 2. 6 Chosen IHRM strategy for Avon Based on the MNE business strategy and international orientation, Avon should choose the IHRM strategy ‘Active IHRM strategy’. This strategy has a high degree of global integration and a high degree of local responsiveness. This strategy balances both global integration and local responsiveness and is most suitable when an MNE has a geo-centric HR orientation. Avon operates globally but also pays a lot of attention to local preferences (for example norms and values). Avon wants good control over the HR decision- making. They find hiring, training and retaining the best employees the most important factor. This is crucial to the company’s strategy. Chapter 3: International mergers and acquisitions, joint ventures and alliances 3. 1 Avon’s form of international combination for China Avon has a transnational organizational structure, which is necessary in order to succeed in China. China is a country with a lot of rules and culture. Avon has to fit in, to adapt to the standards of China, in order to sell her products. The division structure is the Geographic Division Structure, because each region is an independent division with its own managers. In this way, the local managers can adapt to the local conditions. This structure will fit well in China because an American approach will not work in this country. It’s important to adapt to the local preferences and rules. A competitor of Avon is Olay, which also knows that as an international organization, you have to adapt to the local consumers. For example: on their website, everything is customized to the Chinese. 3. 2 HR due diligence The HR due diligence is directed on the culture of China and on the corporate cultures of Avon and of the firm(s) which Avon choose as a possible partner. The pre-combination phase involves the initial target screening and pre-bid courtship of the potential target firm, the ‘due diligence’ review of the target company, the price-setting and negotiation of the approach the partners will take to the combination, and the agreement of the contract wording of the deal. Avon should be aware of the fact that there are many large cultural differences between its own employees and those of China. This all has to do with the differences in the corporate cultures. Avon is focused on the development of a good workforce. This includes that they already are cultural sensitive and find it important to build relationships. These points match to the Chinese culture, which is also focused on relationships and hospitality. With a possible collaboration with a Chinese company, Avon could stick to their values: trust, respect and belief. Chinese businesses namely are based on those values. Punctuality is very important for Chinese businesspeople. Being late is rude. Meetings always begin on time. At the beginning of a meeting, business cards are exchanged. Business cards should be printed in English on one side and Chinese on the other. English is not spoken in business meetings, although some Chinese may understand English without making it known. It is wise to hire an interpreter or ask for one to be provided. In China it is quite normal to have long meetings and lengthy negotiations (often ten days straight), which are often even with many delays. The Chinese will enter a meeting with the highest-ranking person entering first. They will assume the first member of your group to enter the room is the leader of your delegation. The senior Chinese person welcomes everyone. The foreign leader introduces his/her team, and each member distributes his/her card. The leader invites the Chinese to do the same. The seating is also very important at a meeting. The host sits to the left of the most important guest. Furthermore, there may be periods of silence at a business meeting; it can be seen as rude if you interrupt these. If you want to make a contract, the Chinese consider this as a draft subject to change. Chinese may agree on a deal and then change their minds. A signed contract is not binding and does not mean negotiations will end. The status of the people who make the initial contact with the Chinese is also very important. You can insult the Chinese by sending someone with a low rank. If the Chinese side no longer wishes to pursue the deal, they may not tell you. To save their own face, they may become increasingly inflexible and hard-nosed, forcing you to break off negotiations. In this way, they may avoid blame for the failure. 3. 3 Expected problems on the areas of staffing, compensation and benefits Staffing * There can be differences between international labour law and standards. You must take account for employees who previously were used to other standards. * Companies can have other standards for working hours per year of per week. This can be different for employees who come from another company with a different culture/standard. * There can be some problems with labour relations. That is the organisation, impact and influence of the relations between employers and employees. For example, some employees can be used to communicate in an informal way with his colleagues during working hours. Others may see this as unprofessional and prefer a formal way of communication. * In China, HR selection relies on connections and family relationships. In America, this selection is bases on schooling and earlier performances. This can cause problems during for example intake interviews, where Chinese employees expect other things than the American employees. * Compensation * People can have different motives to work for a company. Where one employee works for the money, the other works for the satisfaction he or she gets out of the performed work. * Wages and salaries can be different. This can cause higher expectations from employees. * Benefits * Retirement and saving programs, employee health and welfare programs, and other supplemental benefits can all create significant financial, administrative and employee-qualification problems. * If two companies merge, you have to look at which benefits you want to use from both companies. These benefits have to be the best parts of both companies, but also have to match to each other. * There can be differences in the role that sustainability played in the previous company and is going to play in the future company. Chapter 4: Differences in employment laws and labor relations 4. 1 Differences between Avon in the U. S. and a partner firm in China | Working hours| Labour relations| Salaries| Avon in US| Representatives can organize their own hours. When they sell something, they earn money. | The relations between the employers and employees are in the USA more informal. Superiors are easily accessible. See PDI (power distance) in figure 1 (Geert Hofstede, 2013)| Representatives earn 40% commission on beauty products and throughout their career 50% commission. | Avon in China| In China, the system is the same as in the USA. However, Chinese inhabitants tend to be more persisted to their goal. So they will make more hours than necessary. | In China, the superiors have all the answers. The employees are not allowed to oppose and debate about orders that they have been given. | In China, it is the same concept, so also the same commission/salary. | *Figure 1: Comparisation countries Hofstede 4. 2 International laws which affect the international operations of Avon There are always different common and civil laws in different countries. HR managers from MNE’s have to develop policies that stay within these laws and regulations. Consultants are often highly recommended in unknown countries. For example: in China is direct marketing forbidden. Avon has to adjust their systems to the local preferences and laws. Women in higher functions in China is not very usual and according to Chinese citizens older people are wiser than younger people. The IRHM of Avon has to adjust their system to this. Otherwise, cultural clashes can occur when younger people (or even women) are placed above older people (men). Different countries have also different religions (religious law), on which the advertisements and communication have to be balanced. For example in countries with a Islamic religion, nudity in advertisements have to be reduced. 4. 3 National employment laws and supra- and extraterritorial laws of China National employment laws Salary The salary depends on the locality, industry and skill level. But Full-time employees have to earn minimally: RMB 1,120 per month. This is roughly $165,- for a full time employee (The university of Iowa, 2011). This is lower than in the USA which is $1,257 per month for a full time employee. This can be a positive law for Avon as they can lower their salaries and get the same results from their employees. Overtime The overtime payment is written below, this is according to The university of Iowa (2011). Working hours| Minimum overtime pay| Typical working day| 150 %| Rest day (weekend)| 200 %| National holiday| 300 %| This is a lot more than that is usual in the USA. In de USA is 150 % the norm for overtime. Avon has to adapt to these overtime payments. Labor contract law Every Chinese worker has to have a written contract since 2008. This is already usual in the USA, so this won’t be a problem. Holidays Employees receive a minimum of five days leave per year. When an employee reaches the 15 years’ work experience, he/she gets a minimum of 15 days off per year. This applies to all employees. In the USA this is a minimum of 18 days of per year. 10 days of the employees own choose and 8 national holidays. This is not necessarily a problem for Avon, but they have to take this into account when making the contract. Chinese are not used to take a lot of vacation and often don’t even use all of the 5 and certainly not all of the 15 days off. Maternity leave Female employees are entitled to a minimum of 90 days of maternity leave. Men are not covered under maternity leave, although a lot of employers allow men several days off after the birth of a child. There is an insurance that covers the lost wages of the women during the maternity leave. In the USA women can get maternity leave, but this will be unpaid. They can get 12 weeks (84 days) of maternity leave. This is less than in China and they also don’t get paid. Avon has to get used to the Chinese minimum and pay 1% of payroll expenses to this insurance company. Supranational Laws Supranational laws are laws between member countries. China doesn’t have memberships and supranational laws therefore don’t apply to Avon. Extraterritorial Laws Extraterritorial laws are laws that are applied on multi nationals even outside of the borders. USA has some extraterritorial laws to protect American citizens anywhere in the world. Examples are: SOX, FCPA, ADA and ADEA. These laws protect employees from discrimination, harassment on basis of sex, race, national origin, colour and religion. 4. 4 HR specific preparations for China Immigration/visas The Chinese visas for work or pleasure are often complex. Applying for a China business visa offers a single entry option, which is similar to the tourist visa applications. But it also affords multiple entry variants for 6 months, 1 year or 2 years. (Global visas, 2013) The application for a Visa should be handed over in personal to the visa office. Mailed applications will be refused. This is why many employers hire a visa agent to bring their visa application to the office and help them out with all the complications. (China embassy, 2008) American citizens pay $130 fee for their visa according to the China embassy (2008). Furthermore, the following documents are required: Valid original passport (for at least 6 months) * Completed Visa Application, signed by the applicant * One recent photograph * An employment permit from the ministry of labour and social security or the state administration of foreign experts of China * An invitation letter from a relevant department of Chinese government or a government authorized company. Nationalit y| Single entry| Double entry| Multiple Entry Visahalf- year| Multiple Entry Visaone year| Multiple Entry Visa2 Years| British citizens| 30| 45| 90| 150| 150| American citizens| 80| 80| 80| 80| 80| All other Nationalities| 20| 30| 40| 55| 55| Figure 2: Table of visa fees (GBP) Personal data privacy There is no data protection law in China, but some rules are related to the protection of personal data. There are 8 principles identified by Veronica Lockyer (2013): 1. Information collectors should have specific and clear purposes as well as justifiable reasons when processing personal information. 2. Organizations should collect no more information than is necessary to fulfill their purposes and must delete the information once its intended use has been fulfilled. 3. Information collectors must inform individuals in a clear, understandable and ppropriate manner of the purpose, scope and use of personal information that is collected and of the measures which will be taken to keep the in formation secure. 4. Information collectors must obtain consent to the collection of personal information. 5. Information collectors must ensure that all personal information is complete and up to date. 6. Organizations must take appropriate management and technical measures to keep information secure. 7. Organizations must not continue to use information once the purpose for which it has been collected has been fulfilled. 8. Organizations must clearly define internal responsibilities for personal information, must take appropriate measures to implement the responsibilities and must keep records of data processing. Companies must be aware of the increasing attention that is paid to data privacy and also of the recent expansion of the rules, regulations and guidance from the authorities. It is likely that the guidelines above are the basis of a data privacy law in the future. Anti-discrimination There is no specific anti-discrimination law in China. There are certain general provisions included in other laws and regulations. The employment based discrimination rules are: * No discrimination based on nationality, race, sex or religion. * Equal employment rights for men and women. * Equal pay for equal work. * It is against the law to refuse to hire a female employee because of her gender. * Equal employment opportunities, terms and conditions to each employee. * Discrimination related items are forbidden in recruitment advertisement. Intellectual property According to Forbes (2012) is protecting intellectual property rights the single biggest hurdle for most companies when thinking about entering the Chinese market. The infringement of the IP laws are more worse than in other countries. But there are laws, and these are: * Trademark law * Copyright law * Patent law 4. 5 How US extraterritorial laws affect IHR Extraterritorial laws are laws that are applied on multi nationals even outside of the borders. USA has some extraterritorial laws to protect American citizens anywhere in the world. Examples are: SOX, FCPA, ADA and ADEA. These laws protect employees from discrimination, harassment on basis of sex, race, national origin, colour and religion. An employee of a American firm who believes that she has been subjected to any form of discrimination in a foreign assignment may bring a lawsuit in the US to pursue these claims. It affects IHRM because a MNE has to decide whether it follows the extra-territorial law or the nation’s law. 4. 6 Labour movement evolving as a response to increased globalization Labour is banding together across sectorial, national and international borders to capitalize on every force that interests them. They stand stronger together and have more ground to stand on when discussing with the big MNE’s. *Figure 3: Unionization of labor movement . 7 Concrete recommended actions for achieving relations It is recommended to find a central path between the laws and customs of China and the (extraterritorial) laws and customs of the USA. It is also important to start with the application of a Visa on time. In China it generally takes a lot of time before you get a Visa. Hire a Chinese advisor tha t helps you through all the difficulties of the Chinese government. This is also a good way to get to know inside information regarding labour and rules. Chapter 5: The role of international ethics, corporate governance and sustainability 5. 1 Characteristics of the CLA In China, there are several rules regarding the CLA. Article 4 of the general provisions says: â€Å"The employer shall establish and perfect rules and regulations in accordance with law and guarantee that laborers enjoy labor right and fulfill labor obligations†(2007, Labor law of the peoples republic of China). Another rule they point out is in article 16 of the general provisions: â€Å"Labor contracts are agreements reached between laborers and the employer to establish labor relationships and specify the rights, interests and obligations of each party† †(2007, Labor law of the people’s republic of China). Labor contracts shall become legally binding once they are concluded in accordance with law. The parties involved shall fulfill obligations stipulated in labor contracts. In China, it is accepted for business owners to insist that their new employees accept non-disclosure or non-compete obligations. A non-disclosure obligation is an obligation which protects certain confidential information about the company. A non-compete obligation is an obligation which protects the goodwill and know-how of a certain company. Obligations and respective topics Issues of pay, working hours, rest and vacation, safety and health, insurance and welfare. (Penealr, 2013) * Avon shall take all necessary and appropriate measures to ensure that workers may exercise freely their right to organize. (Penealr, 2013) * Avon shall be taken to encourage and promote the full development and utilization of machinery for voluntary negotiation between employers and trade unions, with a view to the regulation of terms and conditions of employment by means of collective agreements. Penealr, 2013) * Avon must in no way contribute to the Chinese authorities’ suppression of freedom of expression. Business must not supply technology or equipment that could be employed to censor and control internet use. (Amnesty, 2009) China is still a developing country. A lot of information is not available in The Netherlands about the freedom of choice. According to the websites used above, there is a small freedom of choice. People can tell what they want if they have a higher function. According to Hofstede, the power distance is relatively high. When there is a higher power, they have more freedom of choice than the employees beneath them. 5. 2 Co-determination bodies and forms of participation The power distance in China is very high. This also explains that there is very low co-determination. Employees get a lot of responsibility, but only about a long term assignment they have to make. After a long briefing they can work on their assignment. What they have to do is very strict. The co-determination is very low for this reason. The power the employees have is very low, this will also be shown in the next question about the trade unions. The power they have is the power about their assignment. With this assignment they can do what they want as long as they make it the way the manager wants it. This is the responsibility they get. For a Chinese worker this is a lot of responsibility. They will work hard on their long term assignment to proof they are worth the assignment and especially for the welfare of their family. 5. 3 Relationship between trade unions, employers and government? Trade unions in China have many members. 137 million according to the All-China Federation of Trade Unions (ACFTU, 2013). On their website you can find the following: Trade unions of the foreign-invested enterprises in China have firmly centered on production and business operation to conduct activities and have given support to enterprises in their operation and management according to law; have educated workers to observe factory rules and regulations and discipline; organized workers to launch labor emulation campaigns; and aroused the enthusiasm of the workers for running the enterprises well, so as to contribute to the sound development of the enterprises. But they are impotent when it comes to representing workers. The Chinese party-state recognizes such frail as instability. It has passes labor laws promoting collective contracts, even though these laws are welcome, they are largely hollow. Collective contracts are very different from collective bargaining. This means the Chines unions are not working very well. (Trade Unions in China, 2006). This means that most employees have a collective contract and the Chinese trade unions don’t do that much for them in comparison with West-Europe. The past years, a lot of strikes are held by the Chinese employees. They were not organized by the trade union, but by their own. This is very remarkable. They protest against the trade unions and they want better trade unions. The response of the ACFTU to their employees was not unsympathetic. They mentioned that the official union was not yet up to speed with the rest of the workers’ movement in China. The pressure of the workers forces the union to reassess its role and the way it interacts with the people it is supposed to represent (CLB, 2013). 5. 4 Role of IHR in ethics, corporate governance and sustainability? It is important for International Human Recourses to keep the ethics and the values and believes of the country in mind. Only that way people can work in a properly way. In China there are many different ethics in comparison with the V. S. In China, everyone takes responsibility even though the power distance is high. When you are working you will get an assignment from your manager which is your responsibility. They expect you to take this responsibility. You also have to respect the tradition. You are not able to change the things which are tradition. These traditions are very important for the Chinese. As the Americans work for their personal welfare, the Chinese work for their Family welfare. If they can work extra, they will do that for their families. In this you also see the collectivism they have in China. You can conclude that China is very different from the U. S. For that reason it is really important to take everyone’s values and believes in account. 5. 5 Which sustainable HR practices can Avon formulate to affect employees and labor relations positively in the U. S. and in your chosen country? The best way Avon can handle in China is to take the different cultures in account. The Chinese are very different to the U. S workers. The Chinese also need time to adjust to the culture just like the Americans. They may even need more time to adjust. The Expatriate will be treated like a family member and the company has to help overcome the culture shock and provide intensive pre-departure training. In this way, the culture shock will be held small and the workforce will be a ten out of ten. In the first stage, the Chinese will keep their family behind until they are adjusted to the new culture and environment. After that everything will just role in their own way. It is a very sustainable way to keep all these points in mind when sending an expatriate to China. Family status is very high in China. Therefore it is very important to maintain these values and believes. Chapter 6: International recruitment, selection and repatriation 6. 1 Arguments for the pending choice of Avon to use either PCNs, HCNs or TCNs * Host Country Nationals, these are the local nationals. In the case where the decision is made to locate a subsidiary or business unit in a country where the local population lacks the necessary education or training, then IHR must find other ways to staff the necessary workforce, for example by training locals, hiring TCNs or bringing in parent-company international assignees. Parent Country Nationals, typically defined as citizens of the country of the headquarters of the MNE and employed by the firm in the country of its headquarters. When PCNs are transferred to another country, to work in a foreign subsidiary or other type of operation (such as a joint venture or alliance) of the MNE, they are generally referred to as expatriates or international assignees. When they return home, they are referred to as repatriates. Third Country Nationals, used particularly in areas where there is either a shortage of people with the skills the firm needs or where there is a relatively free movement of people from one country to another. TCNs are being used if parent-company managers and technicians are not readily available or not available in the numbers needed. 6. 2 Methods of recruitment and selection for choosing an expatriate Chosen recruitment channel Recruitment involves searching for and attracting qualified applicants to create an applicant pool. After recruiting, there are two broad types of recruiting sources/channels available to organizations: internal recruiting sources and external recruiting sources. For Avon, it is possible to first find candidates through internal recruiting resources. These resources mostly reduce labor costs, are valued by employers and can enhance the reputation of the company as an employer of choice. However, internal recruiting sources can limit the size and to some extent the quality of the applicant pool and may encourage infighting and inbreeding. If Avon decides to choose internal recruiting channels, it is wise to choose them out of the groups ‘former or current expatriates’ or ‘international succession planning programs’. Former or current expatriates are individuals who have been on foreign assignments or are currently on an assignment. In Avon’s case, employees who have been to China for such a foreign assignment are the most attractive. Avon could also choose employees who have been or still are in countries with similar culture as the Chinese culture, which makes them probably also feel comfortable with working in China. Internal succession planning programs are internal programs designed to prepare high-potential employees for overseas positions such as ‘look-see visits’ or ‘short-term developmental’ foreign assignments. This prepares employees for a possible cooperation with Chinese companies. Avon could also decide to use external recruiting channels and locate candidates from outside the organization. The two most obvious channels are ‘executive search firms’ and ‘professional associations or networks’. Executive search firms are recruiting firms that specialize in particular types of individuals or industries. These firms are able to find the perfect candidate for Avon to work with its Chinese partners, because they are specialized in finding the right employee for working within the right corporate culture. Professional associations or networks includes that members of professional associations are potential applications. Avon could use its own external networks to find the right candidates, for example through other (Chinese) business partners or through LinkedIn. It is good to always use multiple recruiting channels so as to increase diversity and generate a larger pool of applications. Attracting candidates to work internationally raises also an important challenge for Avon. It can be hard to find individuals who are interested in international work as well as those who are interested in permanent international careers. It can be a big step for American employees to start working in China, because they actually have to move (maybe with their family) to the other side of the world. So it is important to use recruiting sources that find candidates with high receptivity to international careers: an individual’s attitude toward international careers and is one of the most frequently suited factors in assessing why people undertake careers in international work. Advertisement with criteria for two positions The specific criteria to select employees has a lot to do with their future success in the international assignment. The most important selection criteria for international assignments include job suitability, cultural adaptability and desire for international assignments. _____________________________________________________________________________ Advertisement 1: Senior Account Manager in Shanghai Avon is looking for a Senior Account Manager to join the Avon China Sales team based in Shanghai, China. As a Senior Account Manager you will be responsible for setting up, coordinating and managing our network of Advertising Partners, agency relationships an d direct advertisers for different digital channels. You will report globally to Avon and locally to our General Manager in China. Requirements/criteria: * Affinity with beauty products for woman * Minimum of 5+ years of experience in similar position Demonstrated highly-effective relationship-building and networking skills * High desire for a foreign assignment and willingness to make the necessary efforts to adjust _____________________________________________________________________________ Advertisement 2: Quality Manager in Beijing Avon is looking for a Quality Manager to join the Avon China Quality team based in Beijing, China. As a Quality Manager, you will be responsible for consolidating and tracking the quality of compliance metrics, identify, analyse the gap with target, recommend initiatives for continuous improvement and compliance enforcement. You will also promote the quality awareness in the markets cultivating a continuous improvement culture. Requirements/criteria: * Able to develop and maintain excellent working relationships, work successfully within a team environment and as an individual contributor * Cultural sensitivity and ability to work and thrive in a multi-cultural environment, as well as an ability to work in a matrix environment * Proactive team player, able to take charge and follow-through. Achievement-oriented with a high degree of flexibility and ability to adapt to a changing environment _____________________________________________________________________________ Selection method in all components of the process In one of the first stages, Avon could use a number of formal assessment instruments designed by industrial psychologist that primarily evaluate a candidate’s personal traits and competencies. These can contain for example adaptability, flexibility or openness to new experiences. After these ssessments, Avon can decide which elements are important to successful foreign cultural adjustment. After this stage, Avon could select expatriates by interviewing them, which may be best done by a representative of the home country, a representative of the host country and an interculturalist (someone with the ability to assess the candidate’s ability to adjust to the foreign culture). Avon could also choose for a combination of the earlier mentioned proce dures but rely, in the end, on self-selection by the candidate himself. Avon is interested in candidates taking the time to look at the issues involved with relocation to a foreign country and culture and assessing whether they think they are ready or have the necessary skills, experience or attitude to be successful in the overseas assignment. These assessments may result in the individual realizing they aren’t ready now, but they would like to take such an assignment at some later time in their career. Avon is able to emphasise themselves in this situation, especially because China is the complete opposite of America, looking at the business culture and environment. Decision making process in written and oral selection The selection process starts with an analysis of the job requirements. Avon has to find out what the technical and cultural requirements of the job will be. Also the managerial responsibilities have to be analysed and there has to be determined for what kind of candidate they are looking. Once the number, types and the quality of employees needed are specified, organizations need to find candidates from labor markets that are geographically dispersed. This process is called ‘sourcing’. After this, Avon will publish a job assignment on their official website or send this advertisement to extern job agencies. In this job assignment, the preferred skills and desired profile will be described extensively. Avon will receive multiple responses on this advertisement, mostly of them will be on paper or by email. With the most attractive candidates, an oral interview will be arranged. During this interview, the following subjects will be discussed: * Availability * Job abilities * Personality characteristics * Career status * Desire for assignment * Family situation Language skills * Prior experiences * 6. 3 Strategy of repatriation to the U. S. to be used by HRM of Avon. Avon has to set up a program or training that let the employee understand that it will take time, sometimes longer than expected, to settle into what was once a very familiar environment. Avon has to allow the employee and its family time to re-establish their contacts and friendships. The employee has to keep in mind that he might no longer interact in the same way, since family and friends cannot fully comprehend what you and your family have experienced. Despite great efforts by both the company and the expatriate to discuss the relocation openly, reverse culture shock continues to exist. Avon can provide several support practices to repatriates to prevent problems. These practices can be organized according to three phases: before the foreign assignment; during the foreign assignment; and after the completion of the foreign assignment. First, the assignment needs to be part of a larger plan for the firm, so that the repatriate returns to a specific position that uses the international learning and experience. This can be realized by a ‘back-home mentor’, who is both a contact in the home office for the expatriate who is working on an international assignment , but who also provides information about what is going on back at the home office. Support activities are critical in terms of ensuring a high retention rate. There has to be clear, constant and regular communication between the home office and the expatriates. The expatriates should also be assigned to a mentor, to guide future career development. This also can be realized by e-mails or intranet, which should encourage the expatriate to communicate with colleagues and mentors back home in America. After the completion of the foreign assignment, repatriates and their families often have trouble with adjusting to the lifestyle back home. Avon has to take into account that most of its employees are changed by the foreign experience and not only must relearn their original culture and lifestyle, but probably experience it quite differently than when they left. The expatriates should be supported by cross-cultural training before they move abroad, to make their ‘come-back’ also easier. What arrangements do I have to make before leaving? Inform the tax authorities that you are moving to another country. Make sure that you speak English and Chinese. It is an advantage when an expat speaks the language from the host country, because this will gain respect and understanding. The dialect that is the most common in China is Mandarin. It is advised to follow a course before going to China. Take your medical records with you and when something happens in China, add this to the record. Chinese doctors don’t keep the records for you, patients are expected to do this for their selves. What do I have to know about shipping my properties? Importing and exporting money is limited to 6. 000 RMB. When transporting more money, this has to be clarified to the customs. Shipped goods will be released when the licenses are obtained. Keeping your necessary baggage with you is recommended. It is recommended to buy a car in China, as the import license is hard to get. As many apartments can be rented furnished in China and there are many shopping options, it may be worth leaving most of the household in the home country if you plan to return. What will my salary be? When hired from within China, your salary might be lower than what you earned back home. The costs of living, however, are much lower than in western countries. So eventually the buying power will rise. Make sure that health insurance is included in your salary package, because this can be quite expensive. Brochure Expat to China All you need to know What arrangements do I have to make before leaving? Inform the tax authorities that you are moving to another country. Make sure that you speak English and Chinese. It is an advantage when an expat speaks the language from the host country, because this will gain respect and understanding. The dialect that is the most common in China is Mandarin. It is advised to follow a course before going to China. Take your medical records with you and when something happens in China, add this to the record. Chinese doctors don’t keep the records for you, patients are expected to do this for their selves. What do I have to know about shipping my properties? Importing and exporting money is limited to 6. 000 RMB. When transporting more money, this has to be clarified to the customs. Shipped goods will be released when the licenses are obtained. Keeping your necessary baggage with you is recommended. It is recommended to buy a car in China, as the import license is hard to get. As many apartments can be rented furnished in China and there are many shopping options, it may be worth leaving most of the household in the home country if you plan to retu rn. What will my salary be? When hired from within China, your salary might be lower than what you earned back home. The costs of living, however, are much lower than in western countries. So eventually the buying power will rise. Make sure that health insurance is included in your salary package, because this can be quite expensive. Brochure Expat to China All you need to know †¦ questions and answers to be fully prepared for your leave †¦ questions and answers to be fully prepared for your leave How is the (public) transportation within China? Transportation can be by bus (around 1 a 2 RMB) or by train (6km: 3 RMB and then per 10km 1 RMB). When taking a taxi it is important to speak Mandarin or having your hotel, business address and home address written in Chinese on a card. It is furthermore common to sit in the front passenger seat and it is not required to tip the driver. What are the conditions of employment? A normal working week is from Monday till Friday from 8 o’clock till 5 o’clock with an hour break. The 1st of October is a national day, the last days of January and the first of February is Chinese New Year, 1 may is the day of the labor. Employees are free on these days. The employment in China is contract based. In this contract the contributions in the accommodation and the car are clarified. How is the medical insurance? This is quite expensive for foreign expatriates. In average this will cost around 1. 300 RMB. It is advisable to go to a foreign-run hospital, as they have better techniques with western doctors. Fees though, are very costly and health insurance may not always be accepted. Before going to a hospital, research whether they will accept your insurance. Prescriptions written overseas will not be accepted in China. So if you are currently taking medication, be sure to set up an appointment upon arrival to have a new prescription written. These are generally covered by the insurance. How is the (public) transportation within China? Transportation can be by bus (around 1 a 2 RMB) or by train (6km: 3 RMB and then per 10km 1 RMB). When taking a taxi it is important to speak Mandarin or having your hotel, business address and home address written in Chinese on a card. It is furthermore common to sit in the front passenger seat and it is not required to tip the driver. What are the conditions of employment? A normal working week is from M onday till Friday from 8 o’clock till 5 o’clock with an hour break. The 1st of October is a national day, the last days of January and the first of February is Chinese New Year, 1 may is the day of the labor. Employees are free on these days. The employment in China is contract based. In this contract the contributions in the accommodation and the car are clarified. How is the medical insurance? This is quite expensive for foreign expatriates. In average this will cost around 1. 300 RMB. It is advisable to go to a foreign-run hospital, as they have better techniques with western doctors. Fees though, are very costly and health insurance may not always be accepted. Before going to a hospital, research whether they will accept your insurance. Prescriptions written overseas will not be accepted in China. So if you are currently taking medication, be sure to set up an appointment upon arrival to have a new prescription written. These are generally covered by the insurance. Will my partner get a job easily in China? Expats are rarely employed by local Chinese companies. The way to get to work in China is through international companies, relationships or high education and skills. A Chinese work permit is needed for a foreigner to work in China. This is also the visa that is needed to enter the country. How are the schools for my kids in China? The state-funded schools are not a good option for children of expatriates ecause the colleges are all given in Mandarin and the standards may not be recognized when returning home. The standards of private schools however are generally high and the education and qualifications will definitely be recognized when returning home. How is the (business) culture in China? Connections are very important when doing business. Much time is devoted to establishing a relationship. Chinese inhabitants will therefore rarely do business with people they don’t know. Seniority and hierarchy are very important in China. Respect for older and more powerful people must be showed. Being punctual and formally dressed is important. A business card should be printed in English and Chinese and both handed over in the beginning of the meeting. Upon an introduction, both the persons stand up and bow. A handshake is also accepted. This is the time to exchange business cards. A gift should never be opened in front of the giver, unless the giver insists. An ID should always be carried with you, as spot checks are very common and failure to show evidence in ID will result in a fine or detention. Will my partner get a job easily in China? Expats are rarely employed by local Chinese companies. The way to get to work in China is through international companies, relationships or high education and skills. A Chinese work permit is needed for a foreigner to work in China. This is also the visa that is needed to enter the country. How are the schools for my kids in China? The state-funded schools are not a good option for children of expatriates because the colleges are all given in Mandarin and the standards may not be recognized when returning home. The standards of private schools however are generally high and the education and qualifications will definitely be recognized when returning home. How is the (business) culture in China? Connections are very important when doing business. Much time is devoted to establishing a relationship. Chinese inhabitants will therefore rarely do business with people they don’t know. Seniority and hierarchy are very important in China. Respect for older and more powerful people must be showed. Being punctual and formally dressed is important. A business card should be printed in English and Chinese and both handed over in the beginning of the meeting. Upon an introduction, both the persons stand up and bow. A handshake is also accepted. This is the time to exchange business cards. A gift should never be opened in front of the giver, unless the giver insists. An ID should always be carried with you, as spot checks are very common and failure to show evidence in ID will result in a fine or detention. What do I have to arrange when I travel back? You need to complete forms, just like when you arrived. It is easy to contact the consulate where you are registered to sort out your situation. When you pass the border it is necessary to have a fully detailed inventory of your furniture and a moving form attestation. It is also important to think about school registration when children are involved. Make sure there is money in the bank. International relocation can be expensive. How will it be to come back after the time abroad? For most expatriates is returning home very hard, because they return different then when they left. Seek a mentor when you accepted an overseas function. This person will keep you informed and assists in your career path and also with the repatriation. It is also possible to attend a repatriation workshop that helps to prepare for the feelings that occur when returning home. Those workshops also update you with information. If children are involved, prepare them for going back home. Just like yourself, they have a lot of experiences and this can set them apart from their peers. Communicate regularly with their school and make sure they get all the support needed. Discuss career opportunities with your employer so that you avoid surprises when returning home. What do I have to arrange when I travel back? You need to complete forms, just like when you arrived. It is easy to contact the consulate where you are registered to sort out your situation. When you pass the border it is necessary to have a fully detailed inventory of your furniture and a moving form attestation. It is also important to think about school registration when children are involved. Make sure there is money in the bank. International relocation can be expensive. How will it be to come back after the time abroad? For most expatriates is returning home very hard, because they return different then when they left. Seek a mentor when you accepted an overseas function. This person will keep you informed and assists in your career path and also with the repatriation. It is also possible to attend a repatriation workshop that helps to prepare for the feelings that occur when returning home. Those workshops also update you with information. If children are involved, prepare them for going back home. Just like yourself, they have a lot of experiences and this can set them apart from their peers. Communicate regularly with their school and make sure they get all the support needed. Discuss career opportunities with your employer so that you avoid surprises when returning home. How is the taxation? When living and working for more than 183 days in China, you have to pay taxes. The percentage that has to be paid over the income varies between 5% to 45% depending on the height of the earnings. You may be able to continue paying social security contributions in the h ome country. It is advisable to do this when you plan to return, to preserve the pension. Is it recommended to open a Chinese bank account? Yes, because withdrawing money from a overseas bank account has expensive fees. A lot of patience, the Visa, passport and prove of residence is required to open an account. It is advisable to open two accounts, because the maximum withdrawal per day is 5,000 Yuan, which is not very much. Two accounts enable you to double the withdrawal, and then you can afford the big ticket items, such as air tickets or electrical goods. How is the taxation? When living and working for more than 183 days in China, you have to pay taxes. The percentage that has to be paid over the income varies between 5% to 45% depending on the height of the earnings. You may be able to continue paying social security contributions in the home country. It is advisable to do this when you plan to return, to preserve the pension. Is it recommended to open a Chinese bank account? Yes, because withdrawing money from a overseas bank account has expensive fees. A lot of patience, the Visa, passport and prove of residence is required to open an account. It is advisable to open two accounts, because the maximum withdrawal per day is 5,000 Yuan, which is not very much. Two accounts enable you to double the withdrawal, and then you can afford the big ticket items, such as air tickets or electrical goods. Conclusion Avon sells through direct selling, catalogues, mall kiosks and web based store. This is Avon’s major strength and because of that they operate through international alliances, partnerships and consortia. The transnational business strategy is dominant for Avon because Avon has an approach that attempts to maximize both responsiveness and integration. They are global and multi-domestic at the same time. In the Chinese market their competitor will be Olay. Olay is a company bought by Procter amp; Gamble and has the same view on beauty products. Door-to-door selling is forbidden in China, therefore it is best for Avon to enter the Chinese market through international alliances, partnerships and consortia. When Avon expands to China, the geo-centrism strategy will be adapted by the headquarters. This way they will borrow the best practices from around the world. In IHRM the strategy they will choose is the Active IHRM strategy. This strategy has a high degree of global integration and a high degree of local responsiveness. This is the most suitable when a MNE has a geo-centric HR orientation. The division structure is the geographic division structure, because each region is an independent division with its own managers. This way, the local managers can adapt to the local conditions. This is very importing when expanding to china because an American approach will not work in this country. It is very important to adapt to the local preferences and rules. Before choosing a partner, it is very important for Avon to have a good due diligence. There are so many cultural differences between its own employees and those of China. They have to take care that all these differences will be taken into account. Not only a culture clash between employees will be possible, there are also problems in the staffing, compensation and benefits that are expected. In China there are different labor laws, standards and relations. In China HR selection relies on connections and family relationships, in America HR selection relies on schooling and earlier performances. Also in working hours and salaries are many differences. It is very important for Avon to take all of these differences into account. HR specific preparations for China are immigration and visas, which is very important in China. Personal data privacy is also very important because there is no data protection law in China like there is in America. This is also the case for anti-discrimination. There is no specific law for anti-discrimination. Therefore it is recommended to find a central path between the laws and customs of china and the (extraterritorial) laws and customs of the USA. Hiring a Chinese advisor will help Avon through all the difficulties of the Chinese government. We recommend Avon to extensively reflect the decision of expanding to China. It is a very difficult country to fit with the needs and demands of the customers. The expanding to China will therefore take a lot of time. Avon has to do a really good due diligence and bring the differences well in map. When this is done, they can recruit different managers and employees for the work in China. These people need to be selected by the Chinese values and believes so they will fit into this culture and will be accepted in this culture. Bibliography Briscoe, D. , Schuler, R. amp; Tarique, I. (2012). International Human Resource Management: Policies and Practices for Multinational Enterprises. Routledge: New York. Ediplomat, (2010). Cultural Etiquette. http://www. ediplomat. com/np/cultural_etiquette /ce_cn. htm. 15-04-2013. CLB, (2013). Chinese workers demand better trade union. http://www. clb. org. k/en/content/china%E2%80%99s-workers-demand-better-trade-union. 12-04-2013. All-Chinese Federation of Trade Unions, (2013). All-Chinese Federation of Trade Unions. http://www. acftu. org. cn/template/10002/index. jsp. 12-04-2013. Trade unions in China, (2006). Trade unions in China. http://cep. lse. ac. uk/pubs/download/CP204. pdf. 12-04-2013. Amnesty International, (2009). Doing business in China. http://www. amnesty. ch/de/themen/wirtschaft-menschenrechte/doing-business-in-china. 12-04-2013. Pennealr, (2013). Chinese labor law. http://www. pennealr. com/archive/issues/vol2/CLPR_v2i1ps10pe35. df. 12-04-2013. Ministry of commerce peoples republic of China, (2007). Labor law of the people’s republic of China. http://english. mofcom. gov. cn/aarticle/policyrelease/internationalpolicy/200703/20070304475283. html. 12-04-2013. Geert-Hofstede, (2013). What about China. http://geert-hofstede. com/china. html. 03-04-2013. The university of Iowa, (2011). What are the major aspects of Chinese labor law. http://ebook. law. uiowa. edu/ebook/uicifd-ebook/what-are-relevant-issues-concerning-chinese-labor-and-employment-law. 03-04-2013. Global visas, (2013). Chinese visas. http://www. lobalvisas. com/countries/china_visa. html. 05-04-2013. China embassy, (2008). Employment/work (Z) visa. http://www. china-embassy. org/eng/hzqz/zgqz/t84245. htm. 05-04-2013. Learn4good, (2013). China visa information. http://www. learn4good. com/travel/china_visa. htm. 05-04-2013. Veronica Lockyer, (2013). New developments in data privacy in China. http://www. orrick. com/Events-and-Publications/Pages/New-Developments-in-Data-Privacy-in-China. aspx. 05-04-2013. Chinalawblog, (2012). China anti-discrimination law. http://www. chinalawblog. org/law-topics/employment-law/190-china-ani-discrimin