Numerous Definitions Of Expatriates

Numerous Definitions Of Expatriates This chapter explores the literature around expatriates in Multinational Corporations, emphasizes the focus of adjusting to cultural differences when preparing expatriates for foreign assignments and also show how it enables them to succeed in their foreign assignments. Different theories and critiques on expatriate training will also be discussed. Expatriation has long been identified as a coordination and control mechanism used by MNCs ( Edstrom Galbraith, 1977; Martinez Jarillo, 1991). As global competition continues to intensify, it becomes increasingly important for multinational corporations (MNCs) to maintain control over their international operations (Barlett Ghoshal, 1988, 1989; Geringer Hebert, 1989; Martinez Jarillo, 1989; Sohn, 1994 ) since appropriate control will ensure that the MNCs strategic goals are met and deviations from standards are corrected to enable subsidiaries act in accordance with headquarters policies. (Vernon, Wells, Rangan, 1996) Numerous definitions of expatriates exist. Several researchers define an expatriate as someone who is assigned to a single foreign country and able to hold a leadership role, (Pucik and Saba, 1998), has high technical skill levels relative to personnel in the host location (Naumann, 1992) and has a limited role or time for his or her assignment in the overseas location (Adler and Bartholomew,1992). Harzing, (2001) defines expatriates as usually home-country assignees who hold top management positions or key positions in functional departments of a foreign subsidiary. Shaffer, Harrison and Gilley, (1999) also define an expatriate as a highly skilled worker with unique expertise who is sent to work in another unit of the same company located in a foreign country generally on a temporary basis for a period of at least six months which will usually involve relocation and significant progress in cultural adjustment (Selmer et al.,1998; Coyle and Shortland, 1992; Torbiorn, 1982). Since the globalization of economies worldwide has resulted in pressure for managers to deal routinely with other cultures and different countries business practices (Marchington and Wilkinson, 2008), it has brought a corresponding rise in multinational corporations direct investment in different countries. However, as these MNCs expand their operations into foreign countries, they also transfer their human resources and managerial practices to their foreign subsidiaries which are not always successful due to the influence of cultural differences between the home and host countries (Dowling et al, 2008) as shown below. Figure 2.1 Management Demands of International Growth d%2013[1] Source: Dowling, P.J., Festing, M., and Engle, A.D., Sr. (2008) International Human Resource Management: Managing People in a Multinational Context. 5th Edn. London: Cengage Learning EMEA As seen in figure 2.1, the globalization of economies worldwide has resulted in pressure for MNCs to deal regularly with other cultures, their beliefs, size, different business practices amongst others and recognising these differences is the first necessary step to anticipating potential threats and opportunities for business encounters (Schneider and Barsoux, 2003). The implication of this focus is that our contemporary world is one of cultural diversity and the MNCs normally operate within diverse cultural environments. For the expatriates, then, cultural issues of all sorts, whether at home or in the host country, become basic concerns. Culture is what makes us what we are and our cultural backgrounds influence everything we do at all times and in all places. We learn about and live our local cultures through the processes of socialization and acculturation that begin in childhood. Now, in order to be functional in a different culture, we need to appreciate its values, norms, beliefs, and behaviour patterns and learn to adjust to them as much as possible. Proficiency in the language of the host country goes a long way to provide someone with the tools of cultural competence. The more the expatriate knows about the host culture (including speaking the local language), about its values and expectations, and the more proficient he/she is in the l ocal language, the greater his/her chances of a successful job performance. All of this adds to a cross-cultural learning that will greatly facilitate his/her professional life while managing the business of the organization within the parameters of a different culture. 2.2 Types Of Expatriates Figure 2.2 presents international human resource management activities in three dimensions. The broad human resource activities of procurement, allocation and utilization. The national or country categories involved in international HRM activities which are the host-country where a subsidiary may be located; the home-country where the firm is headquartered; and other countries that may be the source of labour, finance and other inputs. The three categories of employees of an international firm which are the host-country nationals; parent-country nationals and third-country nationals. DISSERTATION%20DIAGRAM%201[1] Figure 2.2 Types of Expatriates Source: P.V Morgan (1986) International Human Resource Management: Fact or Fiction, Personnel Administrator, Vol. 31, No. 9, pg. 44. The management of foreign subsidiary operations is a substantial challenge for multinational corporations because when making the subsidiary staffing decision, they have the option to choosing between parent country nationals (PCNs), host country nationals (HCNs) and third country nationals (TCN) from the home, host or other countries of the MNC as seen in the diagram above. Perlmutter and Heenan (1974) also widened the analysis of the international human resource selection decision through the dimension of employer staffing choices where four primary philosophies were identified which are the ethnocentric, polycentric, regiocentric, and geocentric staffing . 2.3 Roles of Expatriates According to Rahim (1983) an expatriate has to play many different roles which includes being an agent of direct control, socialization, network builder, boundary spanner, and knowledge transferor which is reflected in the diagram below. d%2015[2] Figure 2.3 The Role of an Expatriate Source: Dowling, P.J., Festing, M., and Engle, A.D., Sr. (2008) International Human Resource Management: Managing People in a Multinational Context. 5th Edn. London: Cengage Learning EMEA. As seen in figure 2.3, the reasons for using expatriates are not limited since they have multiple roles. The expatriate as an agent of direct control can be seen as a control mechanism where the primary role is that of ensuring compliance through direct supervision. The expatriate as an agent of socialization involves the use of corporate culture as an informal control mechanism since they are bound to be exposed to different viewpoints and perspectives that will shape their behaviour. As expatriates move between various organisational units, their network of personal relationship changes. Hence, expatriates are network builders that develop social capital by fostering interpersonal linkages that can be used for informal control and communication purposes. Expatriates are boundary spanners because they can collect host-country information, act as representatives of their firms in the host country and can influence agents. Expatriates are language nodes since they can learn the language of the host country they are in order to adapt. Expatriates also transfer competence and knowledge from their home countries to host countries and vice versa in the course of their assignments. Edstrom and Galbraith (1977) also identify three general company motives for sending out expatriates: position filling (PF), management development and organisation development. Position filling refers to the transfer of technical knowledge, mainly to developing countries where qualified local nationals are not available (Edstrom and Galbraith, 1977); Transfer for management development gives the expatriate manager in question international experience and develops him for future roles in subsidiaries abroad or with the parent company (Edstrom and Galbraith, 1977); Organisation development occurs where transfers are used to change or maintain the structure and decision processes of the organisation. In this case, transfers are used as a co-ordination and control strategy. Specifically, the use of expatriate personnel has been recognized as an important control mechanism to monitor and evaluate the activities and behaviours within the subsidiary (Black Mendenhall, 1990; Boyacigiller, 1990; Edstrom Galbraith, 1977; Kobrin, 1988; Schuler, Dowling, De Cieri, 1993; Tung, 1993). However, this role comprises of two elements which are direct and indirect control. Direct control is defined as the direct involvement in decision making, selection and promotion of local employees while indirect control is exercised through the transmission of values, attitudes and ways of doing things, or by being cultural carriers'(Edstrom and Galbraith 1977; Jaeger 1983; Lu and Bjorkman, 1997). Whether implicitly or explicitly stated, expatriates are also trainers who are expected to assist the multinational corporations train and develop HCNs to be able to train their replacements ( Dowling et al, 2008) . Expatriates should also be perceived not just as knowledge carriers but, more importantly, as transfer facilitators who enhance the transfer of important parent-firm organizational knowledge to its subsidiaries (Bonache and Brewster, 2001; HÃ ©bert et al.,2005; Kostova and Roth, 2003). However, according to Fenwick et al, (1999), there has been little empirical investigation as to how effective expatriates have been as agents of socialization since attempts to introduce corporate values and norms ritualized in the form of certain expected behaviours often have negative results at the subsidiary level. Besides transferring knowledge from headquarters to overseas affiliates, expatriates also learn from their involvement in managing these operations. In this case, expatriates play the role of learning agents, absorbing new knowledge on behalf of the headquarters ( Jaeger and Baliga, 1985) . Expatriates also serve an important role as transmitters of corporate culture (Jackson,2002) or cultural carrier (Edstrom and Galbraith 1977; Jaeger 1983; Lu and Bjorkman1997) since they are often sent abroad to transmit corporate culture (Jackson, 2002). Boundary spanning refers to activities, such as gathering information that bridge internal and external organisational contexts ( Dowling et al, 2008) . Expatriates are considered boundary spanners because they can collect host-country information, act as representatives of their firms in the host country and can influence agents ( Dowling et al, 2008) . 2.3.1 Other Roles of Expatriates Expatriates are used for a variety of other reasons which includes to provide staff with management development experience for future senior managers (Peterson, Sergent, Napier and Shim, 1996), to set up methods of working, new technology or new marketing methods (Jackson, 2002) , for accountability, their technical skills, their knowledge of products and to provide international exposure to key personnel for development purposes (Arvey, Bhagat and Salas, 1991; Klaus, 1995). Finally, expatriates may be utilized to enforce and protect the companys interests (Bird Dunbar, 1991; Dowling, Schuler, Welch, 1994). 2.4. Major Factors that Affect Expatriates Effectiveness Many factors may affect the effectiveness of expatriates (Thomas, 2002, Tung, 1998) since as indicated by Rahim (1983) an expatriate has to play many different roles which includes being a representative from the parent company; a manager for a local subsidiary company; a local resident; a local citizen or a citizen in both countries; an expert; and a family member. Figure 2.4 International Assignments: Factors Moderating Performance Certain factors moderate expatriates performance and affect the decision to stay or leave the international assignment. Some of these factors as seen in figure 2.4 below includes the inability to adjust to the foreign culture which has been a consistent reason given for expatriate failure, the length of the assignment which might be quite long, the unwillingness to go for the assignment, work-related and psychological factors amongst others. d%208[1] Figure 2.4 Source: Dowling, P.J., Festing, M., and Engle, A.D., Sr. (2008) International Human Resource Management: Managing People in a Multinational Context. 5th Edn. London: Cengage Learning EMEA 2.4.1 Why Expatriates Fail One of the most prominent issues in international human resource management is the failure of expatriates (Hill, 2005:624; ÃÆ'-zbilgin, 2005:132; Black et al., 1991:291;Shaffer Harrison, 1998:87; Black, 1988:277) which as defined by Hill (2005:624) as the premature return of an expatriate to his or her home country. Assignments often may not be completed, necessitating the replacement of the expatriate (Bird Dunbar. 1991; Black, 1988) and the frequently cited reasons for this outcome include the inability of the expatriate or the spouse and family to adjust to the new environment (Black Gregersen, 1991;Black, Mendenhall. Oddou. 1991; Gaylord,1979; Harvey, 1985) or diminished job satisfaction and effectiveness (Feldman Thomas, 1992;1993; Hodgetts, 1993;Miller, 1975; Naumann, 1993; Stening Hammer, 1992) as a result of workplace conflict around differences in norms and culture. As relocation, be it domestic or international always causes change for those involved as scholars have repeatedly reported that stress levels increase with cultural environment distance (Torbion, 1982; Black, 1988) which is supported by a recent survey released by the U.S National Foreign Trade Council where it was reported that the inability to adjust to the foreign cultural environment was the key reason for expatriate failure and has continued to remain the major reason given for expatriate failure which has been a subject of considerable interest to researchers. Additionally, it has been found that the adjustment of the spouse is highly correlated with the adjustment of the expatriate and that the children tend to mirror their parents reactions (Black and Stephens, 1989). This was observed after an early study by Tung (1982:67) who found out that the number one reason for the failure of expatriates in the US and Western European MNCs were the inability of the expatriates spouse to adjust to the foreign location which proves that family adjustment is a significant criteria that determines expatriates failure in a country ( Selma, 2002) since research over the past 20 years has shown a consistent ranking of the inability of the spouse/partner/family to adjust to the foreign culture as a primary cause of early recall which may result from non-preparation for the move abroad or from the inability to work in the foreign country (Dowling et al, 2008). The spouses difficulty in adjustment may also be related to several other factors which include the inability to cope without the familiar network of family and friends, inadequate language skills or cultural training, and inadequate social support programs to assist him or her in developing an acceptable lifestyle overseas (Adler, 1997). However, Shaffer and Harrison (1998:87) and Black, (1988:277) observe that failure may vary in degree. They highlight the fact that expatriates who remain on the assignment but psychologically withdraw may incur indirect losses for their enterprise. These losses can include a reduction in productivity, market share, and competitive position, as well as damaged staff, customer and supplier relations, and a discredited corporate image and reputation. Tung (1982:68) surveying United States (US), European and Japanese MNCs, highlighted the severity of the problem when identifying that 7 percent of the United States MNCs experienced expatriate failure rates of 10-40 percent, 69 percent had a recall or failure rate of 10-20 percent, and the remaining 24 percent experienced a failure rate of less than 10 percent. He also observed that US-based MNCs experienced a much higher expatriate failure rate than either Western European or Japanese MNCs. More recently Shay and Tracey (1997:31) stated that 25 to 40 percent of the United States expatriates assigned to a developed country return home prematurely compared to 70 percent assigned to a developing country. This is supported by Briscoe, Schuler and Claus (2009) who observed that the rate of early return for US expatriates varies in different enterprises (and in different surveys) from 10 percent to 80 percent (with a common failure rate in the 30-40 percent range). Furthermore, according to Copeland and Griggs (in Shay Tracey, 1997:31) and Deresky (2002:398), it is estimated that between 30 and 50 percent of expatriates who do complete their assignments are considered ineffective or marginally effective. Numerous authors have also highlighted the high cost of a failed expatriate assignment. According to authors such as McNerney (1996:1), Shay and Tracey (1997:31), Hill (2005:624), and Chowanec and Newstrom (1991:65), the estimated cost of a failed expatriate assignment ranges between US$250,000 and US$1 million. While authors such as Griffin and Pustay (2002:583) and Black (1988:277) estimate the cost of a failed expatriate assignment at between US$40,000 and US$250,000 (these figures include the expatriates original training and moving expenses, as well as lost managerial productivity, but do not include the decreased performance of the foreign subsidiary itself). In addition, a failed assignment also has an indirect cost implication for a MNC as it can lead to damaged relations with the host country government, a diminished worldwide reputation of the MNC as well as negatively influencing the moral of employees in both the home and host country operations of an MNE (Chowanec Newstrom, 1991:66; Deresky, 2002:398). Harveys (1995:223) research is also supported by a study of Pricewaterhouse Coopers (PWC) ( 2000:80), who found that the partners of employees were the main reason for failed or unsuccessful international assignments in half the MNCs they surveyed. Hence there is a body of literature that highlights issues and challenges for organisations and expatriates. A particular issue is the need for organisations to pay attention to organisational support on expatriate and spousal adjustment (Caligiuri et al, 1999) which is not only related to general interactions adjustment but also to better performance on the job. 2.4.2 The Process of Adjustment As earlier stated by the author, research shows that if the expatriates spouse and/or family members are having trouble adjusting abroad, the expatriate will have problems as well, including poor job performance (Black Gregersen, 1991; Gaylord, 1979; Harvey,1985),which could result in a premature return from the overseas assignment or a poor performance upon completion of his/her assignment. As a result, several personal dimensions have also been found to impact a managers transition to an overseas assignment and when activities available at home cannot be found in the host country, there may be feelings of loneliness, isolation, and frustration, which contribute to culture shock and inhibit adjustment (Church, 1982). Hence, an international assignment intensifies the stress associated with the transfer of personnel as it involves an entire personal and professional life style modification that impacts the expatriate and other family members (Harvey, 1985:84) often causing a temporary emotional state called culture shock as seen in figure 2.4.2 Figure 2.4.2 The U-Curve Phase 1: Tourist Phase 2: Crisis Culture shock Æ’Â   May exit? Phase 3: Pulling up Phase 4: Adjustment Time Adjustment Source: H. De Cieri, P.J Dowling and K.F. Taylor, The Psychological Impact of Expatriate Relocation on Partners, International Journal on Human Resource Management, Vol. 2, No.3 (1991) p.30. Adjustment to a foreign culture is multifaceted, and individuals vary in terms of their reaction and coping behaviours and the adjustment curve (sometimes referred to as the U-Curve) is based on psychological reactions to the assignment and is helpful in demonstrating the typical phases that can be encountered during cultural adjustment (Dowling et al, 2008) . Phase 1 (tourist or honeymoon stage) commences with reactions prior to the assignment which can be a range of positive and negative emotions such as excitement, anxiety, fear of the unknown, or a sense of adventure which can lead to an upswing of mood . Then as the novelty wears off, realities of everyday life in the foreign location begin to intrude, homesickness sets in, and a downswing may commence which can create negative appraisals of the situation and the location leading to a period of crisis (phase 2).This phase can be a critical time, and how the individual copes with the psychological adjustment has an important outcome in terms of success or failure. Once past this crisis point, as the expatriate comes to terms with the demands of the new environment, there is a pulling up (phase 3) resulting in an adjustment (phase 4) to the new environment (Dowling et al, 2008). In recent studies (Mendenhall and Oddou 1985; Black 1988; Black and Gregersen 1991;Black, Mendenhall and Oddou 1991; McEvoy and Parker 1995), adjustment is seen as a multi-faceted phenomenon with three major dimensions that are addressed and empirically tested: adjustment to the general environment, referring to the general psychological comfort involving aspects such as living conditions, weather or food; adjustment to the work situation, referring to the psychological comfort with culture specific work values and standards; and adjustment to interacting with host nationals, focusing on the comfort with different communication styles in the host setting. Also, adjustment pertaining to expatriates can be broken down into anticipatory, psychological, environmental/ (socio) cultural, organisational, interaction and personal change adjustment (Black et al, 1991,) and Shaffer et al, (1999) has also identified job factors, organisational factors, personal factors, non-work factors and individual factors as significant to expatriate adjustment. 2.5.1 Definition Of Culture According to Hickson and Pugh (1995), national culture shapes everything. National culture influences management practices like structure, strategy and human resources systems; and the effective transfer of management structures and processes relies on the ability to recognise their inherent assumptions and compare them with the cultural assumptions of the potential host country recipient. (Schneider and Barsoux, 2003). Over the years, culture has been defined in different ways by various writers. Culture was first defined in 1871 by Tylor (Hall,1980: 20) as the complex whole which includes knowledge, belief, art, morals, custom and any other capabilities and habit acquired by man as a member of society while Hofstede (2001) also defines culture as the collective programming of the mind that distinguishes the members of one group or category of people from another . At the organizational level, Schein (1985:9) also provides a definition of culture drawn from the framework developed by Kluckholn and Strodtbeck (1961) in (Schneider and Barsoux ( 2003): a pattern of basic assumptions-invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration-that has worked well enough to be considered valid and, therefore, to be taught to new members as correct way to perceive, think and feel in relation to those problems Values, behaviour and beliefs are different across cultures and their importance to those cultures should not be underestimated. Whether engaging in strategic alliances, setting up operations abroad or attracting the local market, companies need to discover how culture can be harnessed to drive business forward (Schneider and Barsoux, 2003). 2.5.2 Cultural Adaptation and Knowledge When expatriates are familiar with the culture, language, and customs of headquarters, it can facilitate the transfer of corporate culture between headquarters and their subsidiaries, enhancing communication and coordination (Boyacigiller,1991; Rosenzweig and Singh, 1991) and can also provide technical and managerial skills that may not be immediately available at the local level. However, expatriates are not likely to be motivated to engage in active participation in a new environment if they are uncertain as to what an appropriate behaviour is, as such contacts with host nationals could be threatening and increase anxiety (Stephan and Stephan, 1992). Hence, the more information received regarding local behaviours, the more easily the expatriate can adopt culturally appropriate behaviour and thus facilitate the adjustment process. Expatriates may learn the host culture indirectly prior to direct contact with the host society through pre departure cross cultural training which can be an effective way of gaining cultural knowledge about the host culture (Black, Mendenhall and Oddou, 1991) in order to reduce uncertainty prior to active participation. Expatriate pre departure knowledge can also contribute to both work and general adjustment overseas (Black, 1988) when such knowledge includes information about the transition which can reduce many of the uncertainties associated with the new role. Work adjustment here includes the extent to which the expatriate is able to adjust to the level of responsibility associated with the assignment as well as his or her pay schedule while adjustment to the general environment refers to the individuals ability to adjust to non-work factors such as housing conditions and health facilities (Black, 1988). Clarke Hammer (1995) also observed that interpersonal skills, which are similar to social orientation, tended to facilitate cross cultural adjustment since social skills appear to be critical to the managers ability to complete tasks and to establish and maintain effective intercultural relationships, all of which assist in the cultural adjustment of the expatriate and his or her family. However, cultural knowledge acquired in ones culture of origin may be inadequate and subject to modifications as one encounter the new environment since cultural knowledge obtained by indirect learning such as through contact with mass media can be superficial and subject to misinterpretation compared to the knowledge obtained by direct contacts with the host society (Lee, 2006; Weimann, 1984). Also, previous international experience was repeatedly found not to predict expatriate and spousal general adjustment during expatriation (Black, 1988; Black Gregersen. 1991b; Black Stephens, 1989) which suggests that many aspects of overseas experience are not generalized from one assignment location to another meaning that expatriate managers are not able to transfer their learning concerning adjustment in one country to another. 2.5.3 The Impact of Training on Cultural Adaptation Cultural adaptation is a social cognitive process that reduces uncertainty and an affective process that reduces anxiety. The outcomes of cultural adaptation include psychological well being and satisfaction as well as social competence (Gao and Gudykunst, 1990; Ward and Kennedy, 1992). Failure to adjust successfully may lead to negative consequences such as lowered mental health status, feelings of marginality and alienation, heightened psychosomatic systems and identity confusion (Berry et al; 1987). For expatriates unfamiliar with the customs, cultures, and work habits of the local people, training may be critical to the outcome of overseas assignments since culture shock experienced by people in new and different cultures which reduces the ability to function in a cultural setting because of the perceived discrepancy between an individuals expectations of how events should proceed and how they actually occur (Black et al. 1992) would be reduced immensely. With complete adjustment, individuals not only accept the customs of the new culture as another way of living but also may actually begin to enjoy them or at least terminate the projection of discomfort onto the host culture (Oberg, 1960). Thus, successful cultural adaptation can be conceptualized as an individuals general satisfaction with ones personal situation in the host country (Gudykunst and Hammer, 1983; Torbiorn, 1982). 2.6.1 Factors Affecting Expatriates Cross-Cultural Adjustment Given the multidimensional conceptualization of culture ( Hofstede, 2001) and strong empirical support (Shaffer et al. 1999), the cultural adjustment of expatriates is essential. Following this multi-faceted approach, it appears that some expatriates may be well adjusted to one dimension but at the same time poorly adjusted to another. For example they may adapt themselves to their new work situation in a foreign country but feel uncomfortable in interacting with locals. Without an understanding of the host culture in such a situation, the expatriate is likely to face some difficulty during the his/her assignment. According to Fontaine (1997:631), the success of international assignments could be ensured if effective preparation, support, and training were provided to the expatriate and their tailing families. Sievers (1998:9), suggests that the majority of MNCs do not have formal policies to address the needs of their expatriates families, hence, it is imperative those MNCs develop comprehensive, flexible and interactive programmes specifically for spouses and children. 2.6.2 Cultural Training Training is defined as the process of altering employee behaviour and attitudes to increase the probability of goal attainment (Hodgetts Kuratko, 1991) thereby reducing expatriates perceived need to adjust (Black et al.1992; Deshpande Viswesvaran, 1991; Earley, 1987).It has frequently been argued that training is the litmus test of human resource management (Keep, 1989) since the pivotal element of a system is designed to harness the talent of those it employs in ensuring that employees are developed for their roles (Redman and Wilkinson, 2008). Few of the training programmes of organisations are available to the public (Morris and Robie, 2001). As a consequence, empirical support on different training methods remains scarce. Organisations develop their own specific training programs or subcontract them to specialist trainers in view of the perceived needs of their business and managers, but cultural views differ on how training is provided, by whom and for what purpose (Schneider and Barsoux, 2003).Training aims to improve employees current work skills and behaviour, whereas development aims to increase abilities in relation to some future position or job (Dowling et al, 2008) Failed or ineffective intercultural adjustments may be avoided by utilizing effective training to prepare expatria

Case study sap establishing a research center over china Essay

Recommendations Content Competitors SAP overview Benchmarks Products and Services China’s software industry Porter‘s â€Å"diamond modelâ€Å" explains how firms can gain competitive advantage on international markets and thus become exporters of their goods and services Demand Conditions Government policies 1972 1978 SAP Founded from IBM employees in Germany SAP turns 10 providing service to 250 companies in Germany, Austria, and Switzerland 1982 Opens international subsidiaries in Denmark, Sweden, Italy, and the US Customer milestone: Dow Chemicals becomes SAP’s 1,000th customer SAP International Expansion into Switzerland 1984 1988 1989 SAP (International) AG in Switzerland controls 12 international subsidiaries in Canada, Singapore, Australia, and other countries. 33% of its revenue is spent for R&D SAP is named â€Å"Company of the Year† Marketing in the Chinese market with presentations in Beijing, Shanghai, and Tianjin. The IBM corporation, a longstanding SAP partner, is now using SAP R/3 to manage its global business processes. New York Stock Exchange (NYSE) in Q3 World’s leading provider of e-business software solutions Third-largest independent software vendor on the planet Company supports its customers with special programs designed to help them emerge from the 2009 economic crisis. Cutbacks, SAP is able to improve its operating margin despite the difficult circumstances. Double-digit growth shows that more and more customers are turning to SAP’s software innovations. FUTURE INVESTMENTS SAP announces its plans for growth in emerging market economies such as Brazil, India, Russia, and especially China= EUR 2 Billion World leader in enterprise applications in terms of software and software-related service revenue World’s third largest independent software manufacturer A 40-year history of innovation and growth. More than 183,000 customers in 130+ countries. More than 55,765 employees in 130+ countries. Annual revenue (IFRS) of â‚ ¬ 14,23 billion = $18,66 billion US dollars (2011) 1994 1998 2000 2003 Early History 1979 Goes public SAP AG Fast Track SAP in Shanghai ninth opening of a development location 2005 2007 2010 2011 The SAP HANA platform, enabling them to analyze data in seconds SAP announces its EUR 2.5 billion acquisition of SuccessFactors, the leading provider of cloud applications. SAP’s Financial The SAP R/3 system is released for Windows Workforce = 24,000 employees in over 50 countries Revenues â‚ ¬6.3 billion 23% increase SAP decision to construct SAP Labs Shanghai Pudong Software Park. 2006 Along with SAP Germany, SAP Austria, SAP Chile, SAP Andina y del Caribe, SAP Mexico, and SAP Region Sur win SAP Labs India receives the distinction â€Å"Recruiting and Staffing Best in Class† Software revenue of EUR 1.5 billion best quarter in SAP’s history. SAP branches out to clients in Austria and France Wave of the Future Opens subsidiaries China South Africa, Malaysia, Japan, the Czech Republic, Russia, and Mexico 1992 1996 Strategy, Structure, and Rivalry Related & Supporting Industries Factor Endowments SAP offered competitive salary, participation in local high-potential programs, foreign visits, the opportunity to work with global counterparts, and for long-term senior staff, a subsidized car policy. SAP set up programs to build relationships with China’s top 10 universities in computer science. Staff traveled to local universities to develop and maintain contact with their professors. SAP Human Resources set up a number of programs to help promote PhD internships at SAP Research. Stanford University three-month summer internship positions an incentive for top Chinese interns Finding talent difficult = 1% of master and PHD graduates with same qualifications as in US or Europe Difficult recruiting managers from abroad to China Compensation Wars for local talent Expatriates recruited also very expensive Difficult to retain staff due to high opportunities =problem for project that require 3-7 years Annual raises were common up to 15% or more Top graduates expected a high level of personal engagement Recruiting Challenges Solutions Key decision making for SAP Labs in China Recommendations Support of long-term investment in technology and R&D Tax incentives Reduced 15% corporate income tax 150% deduction for R&D expenditures if R&D spending has increased by 10% from the prior year Access to cheap land Establishing facilities in China eases market access premise to sell products Government allows easier access to clients Relationship building is very important Political stability supports long-term investments Some Facts 1.5 million employees CAGR: 29% over past three years 20,719 firms in software industry High market potential only 45% of companies had adapted ERP systems Demanding customers due to specifications of Chinese market Rapidly changing and developing market Market of the future: trends can be identified here Strong development of general Chinese economy Limited competition, mostly smaller companies with focus on SMEs SAP is market leader in large enterprise segment Focus of strategy is to deliver high quality software as a standardized solution with constant improvements and innovation SAP‘s structure: Geocentric firm sets the basis for successful operations in China Homogenous company culture Collective decision making „all pulling on one stringâ€Å": interdependent subsidiaries Partners are available, yet underutilized: Huawei became SAP‘s first Chinese partner in July 2012 Supporting industry is not as important as in other industries business outcomes are knowledge based only little up- and downstream activities Infrastructure Capital Resources Knowledge Resources Factor Endowments Physical Resources Human Resources Availability of skilled, hard-working, striving, aspiring workers: appr. 2.4 million graduates Workforce is comparatively cheap: 5000 – 9000 RMB per programmer 20,000 – 30,000 RMB per SAP consultant Competition for skilled university graduates is rough Access to information available, however on a limited basis due to restrictions imposed by the government (such as controlling the internet), Internal knowledge can be built up through exchange with other SAP sites High availability, large inflow of FDI, especially in high technology sector Capital is relatively cheap Different sources of financing available Cheap availability of land and office spaces, especially in software parks Other physical resources do not play a big role Software parks support the exchange of knowledge, lead to innovation, low communication costs Modern internet connections allow for highspeed communication with sites throughout the world Threats Wage levels rise in China companies already start moving to ASEAN countries Loss of IP due to violations and copyright infringements Intercultural problems might become an issue Hofstede: cultural distance between China and Western countries is very high Language barriers Time zone barriers General Threats Unfamiliarity Hazard Incorrect market assessment: Do Chinese firms really want to have standardized software Inadequate knowledge of country’s norms, values, culture, business conduct Lack of embeddedness in local networks (suppliers, customers, governments†¦) Relational Hazards Costs within the organization caused by geographic distance and limited flow of information Discrimination Hazards: Differential treatment of SAP by government, customers, employees Liability of Foreignness Transnationality Index Why Shanghai? Why SAP Labs in China? Why locate in a Software Park? Recruiting Decisions SAP Labs China SAP chose the Integrated R&D Network Approach to manage its worldwide R&D sites successfully R&D networks should follow two principles: Subsidiarity: whatever can be managed by a decentralized unit should not be taken care of in the center Moving centers of gravity: decentralized units take over projects if they are better in doing them than others Create a good working atmosphere Care for employees‘ families Assign interesting & challenging projects Give responsibilities to researchers Conduct intercultural trainings Offer attractive compensation packages Allow researchers to focus on research ïÆ'   – administrative work should be minimized Offer trainings and exchange with other R&D institutions Attract top talented and highly skilled graduates and experienced researchers Maintain tight contacts to local universities Provide support for workers who move to R&D site Choose renowned local researcher with international experiences as a lab leader: â€Å"technological gatekeeper† Include local managers with multicultural experiences to act as cultural mediators Facilitate integration through mentors One of the key success factors is managing humans – hiring and retaining talents accounts largely for the success Experienced managers and experts have to be transferred to new R&D site to share process knowledge, routines and culture which will improve the quality of the work and will make the R&D site an attractive place to work at. Attracting talented employees sets the cornerstone for successful R&D outcomes – contacts to universities are extremely valuable Recruitment Retention By holding turnover rates low, knowledge will be kept in the company and has the potential to multiply Each R&D site is on the same level R&D sites are closely interconnected by means of flexible and varied coordination mechanisms Each R&D site specializes in a particular field of research ïÆ'   development of â€Å"competence centers† Multi-dimensional coordination & information is necessary + Coupling of specialization and synergy effects + Global before local efficiency + Organizational learning across many locations + Exploitation and refining of local strengths – High coordination costs – Complex institutional rules & decision processes Key Characteristics 1 Long-term strategic vision for R&D site should be set Clear assignment of tasks and responsibilities for site Outlook for development ïÆ'   growth plan Quick first successes to strengthen respect and reputation for research work Determine appropriate size of R&D site for each development stage Closeness to business units Cooperation with universities and local research institutes to get fast access to new knowledge and developments Attracting new employees by close ties with universities Getting access to informal networks to gain insight information and knowledge Searching contact to companies to be close to the market/customers Regular visits by top managers should underline importance of new R&D site Promote research outcomes New site should be considered to be equal among other R&D locations Positioning as high-end research organization, which increases motivation and attractiveness for new employees Top management support is crucial to success of R&D site Appropriate resource allocation in terms of money, time, and people needs to be guaranteed Senior management has to be an advocate of new R&D site Incentives for managers should include components based on success of R&D site Besides managing employees, several other key areas including attention for R&D site and sponsorship have to be tackled Top management team commitment, support and involvement Steering committee: representation of relevant parties Led by managers with technical expertise and in-depth organizational knowledge Guidance and monitoring of R&D sites Virtual teams are the key success factor for successful team work Establish processes & infrastructure for efficient communication Allow for visits by granting travel budgets Create a strong corporate culture Encourage taking responsibility, initiative and self-leadership 360-degree feedback Transfer of experts & managers who spread routines, culture and processes Cooperation & exchange between competence centers Know-how and technologies need to be transferred and easily accessible throughout the organization Cross-functional and cross-dimensional communication has to be ensured over different channels, such as Visits, personal meetings, conferences, employee exchanges & trainings ïÆ'   set budget for traveling & exchange Intranet ïÆ'   To prevent the „not-invented-here syndromeâ€Å" Central staff department should support decentralized units Alignment of corporate strategy and R&D strategy Clear allocation of research focus to prevent duplication ïÆ'   competence centers should have a clear focus, should set research agendas Processes & Organization Leadership & Collaboration Strategy To successfully manage the integrated R&D network, SAP has to set the right course Attention for R&D site Strategy Cooperation Sponsorship The measures serve to increase identification, internal transfer and absorptive potentials Location matters Firms need to seek resources (esp. advanced)   

Does Word Length or Orthographical Neighbourhood Size?

Does Word Length or Orthographical Neighbourhood Size Effect Working Memory? Abstract Baddeley, Thomson and Buchanan (1975) were the first to systematically examine the effect of word length on memory finding that short words were recalled more easily than long words. This became known as the word length effect (WLE; Baddeley et al. 1975). Since this study WLE was further examined and presented mixed results (e. g. Baddeley, 2000; Cowan et al, 1992; Lewandowsky & Oberauer, 2009; Lovatt, Avons & Masterson, 2000).In 2011 Jalbert, Neath, Bireta, and Surprenant suggested that previous research conducted may have been subject to a confounding variable, orthographical neighbourhood size (ONS). In a study by Jalbert, Neath and Surprenant (2011) it was concluded that neighbourhood size, not length of the word, is important; therefore forgetting in short-term memory may be due to other variables than decay. The present study was further investigating the effect of word length and ONS by using 2Ãâ€"2 within groups ANOVA. The independent variables were word length and ONS.They both had two levels: 1 syllable (short) and 3 syllables (long) for word length and 3-5 neighbours (small) and 7-9 neighbours (large) for neighbourhood size. Words for the ONS were selected using MCWord, an online orthographic database (Medler & Binder, 2005). The dependent variable was the number of words successfully recalled in the correct order. It was hypothesized that short words would be recalled better than long words, and that words with a large ONS would be recalled better than words with a small ONS.There will be no interaction between the two groups. There were eight participants (Leeds Met undergraduates) selected through convenience sampling. The experiment was run with the use of E-prime (Schneider, Eschman, & Zuccolotto, 2002). Participants were presented with six words then words were displayed on the left side of the screen, participants were asked to indicate the order in which th ey had been presented in. The number of correctly recorded words was used as the measure of the accuracy of their memories.Results showed that there was no significant effect on the ease of recall relating to either word length or ONS, therefore not supporting the hypotheses or previous research. This could be due to a small sample size. The different stimuli used may also have been problematic as previous research indicates (Bireta, Neath & Surprenant, 2006). This may imply that there is another reason for why forgetting occurs and it is not specifically related to decay or ONS. Further investigation into this is recommended. References Baddeley, A.D. , Thomson, N. , & Buchanan, M. (1975). Word length and the structure of short-term memory. Journal of Verbal Learning and Verbal Behavior, 14, 575–589. Baddeley, A. D. (2000). The episodic buffer: A new component of working memory? Trends in Cognitive Sciences, 4, 417–423. Bireta, T. J. , Neath, I. , & Surprenant, A. M. (2006). The syllable-based word length effect and stimulus set specificity. Psychonomic Bulletin & Review, 13, 434–438. Cowan, N. , Day, L. , Saults, J. S. , Kellar, T. A. , Johnson, T. , & Flores, L. 1992). The role of verbal output time in the effects of word length on immediate memory. Journal of Memory & Language, 31, 1-17. Jalbert, A. , Neath, I. , Bireta, T. J. , & Surprenant, A. M. (2011). When does length cause the word length effect? Journal of Experimental Psychology. Learning, Memory, and Cognition, 37, 338–353. Jalbert, A. , Neath, I. & Surprenant, A. M. (2011). Does length or neighbourhood size cause the word length effect? Memory and Cognition, 39, 1198-1210. Lewandowsky, S. , & Oberauer, K. (2009).No evidence for temporal decay in working memory. Journal of Experimental Psychology: Association Learning, Memory, and Cognition, 35, 1545-1551. Lovatt, P. , Avons, S. E. , & Masterson, J. (2002). Output decay in immediate serial recall: Speech time revisited. Journal of Memory & Language, 46, 227-243. Medler, D. A. , & Binder, J. R. (2005): MCWord: An on-line orthographic database of the English language. Schneider, W. , Eschman, A. , & Zuccolotto, A. (2002). E-Prime User's Guide. Pittsburgh: Psychology Software Tools, Inc.

Great Expectations Analyzed Through A Marxist Criticism

Marxism consists of the political and economic theories of Karl Marx, in which class struggle is a central element in the analysis of social change in Western societies. Marxism applies to the novel Great Expectations in many ways. Dickens uses Pip’s complex and altering relationships with Estella, Joe, and Magwitch to show the subjugation of the working-class from the privileged. Estella is raised in a prosperous household and is judgmental of Pip because he is from the working class. She insults his appearance when she says, But he is a common laboring boy. And look at his boots! (Dickens 45) because he is not of the upper class. She also criticizes the way he speaks when he calls one of the playing cards Jacks instead of Knaves†¦show more content†¦Pip’s relationship with Joe changes greatly through the novel. Pip loves Joe for the duration of the story, but his feelings for Joe change throughout Dickens’ interpretation of the social classes. Joe acts as a father figure for Pip at the beginning of Great Expectations, but transforms into a friend and equal when Pip discovers why Joe cannot read. When Pip becomes wealthy, his relationship with Joe becomes strained and awkward. This is Dickens’ way of exemplifying the differences between the social classes. Pip looks down on Joe and is embarrassed by his manners and inability to r ead. One of the ironies in the novel is that Pips financial augmentation and ascension in society, is complemented by moral deterioration. Dickens uses this to express his outlook on the upper-classes. I thought of Estella and how common she would consider Joe, a mere blacksmith (Dickens 55).† This shows how Pip is ashamed of his family and being â€Å"common,† while Joe remains a selfless and honest man throughout the entire story. Pip’s divergence with Joe in this sense is a mirror for Dickens’ beliefs about the differences between the lower and upper-classes. Dickens contrasts the traditional view of a gentleman as a man of moral integrity with his portrayal of a gentleman as a man of wealth, status, and leisure. When Pip leaves for London he recalls, â€Å"I told Joe I wished to walk away all alone (Dickens 123).† Pip didn’t want anybody to see that he had come fromShow MoreRelatedEssay on Like water for chocolate6961 Words   |  28 Pa gesThe realistic laws of cause and effect are suspended: whereas events in realistic novels occur for reasons that are eventually made clear and lead logically to the conclusion of the plot, in magical realism events don’t follow these â€Å"normal† expectations so we often see things happening without an explanation and or reasons we can’t or don’t expect—we are left to accept even the strange without surprise. 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