HR Assignment essay writing help online:: HR functions & expansion in Deloitte

Q?? Write an essay on HRM dealing with the expansion of recruitment & selection in Deloitte??

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Introduction

The roles of the human resource functions are always changing in accordance to the the global changes that happens in the world.  The organisation that is discussed in this article is Deloitte which is a brand that occupies about 10,000 employees who are also dedicated professionals. This is also a firm that provides consulting, auditing, risk management, financial advisory and tax services to their clients. Financial advises is their core business and all the other divisions are owned by Deloitte and the employees belonging to different legal entities (Deloitte, 2012). It can be said that HR functions are involved in all the major decisions that are taken by the firm. Some of them are about getting involved in making strategic decisions and are in charge of people who are the source of competitive performance in a firm. They also help people to raise the performance (Stredweck, 2005).

Expansion and Deloitte

Deloitte is into expansion and acquiring companies now. the economy is uncertain and this uncertainty has given various companies to the opportunity to leverage their various shared service organisations (SSOs), and to put the companies to select an options from the two that are to either grow during the recession or to come out effectively or to recover from the double dip recession. As far as Deloitte is concerned some of the major reasons for their expansion are that, the investor’s wants better results now and is looking forward for improving the margin of performance. Deloitte also looks forward to implementing efficient use of the resources. They as a shared service organisation have the potential of doing more with what they have. The internal conditions in the market places are also favourable for the purpose of investment as there is favourable internal political environment in most of the countries now. Deloitte also has a deeper conviction that they could invest in shared services now and that will help the company to recover favourably in the current economic uncertainty (Deloitte, 2012).

There are many philosophers and management gurus who have held the thought that companies have the the potential to emerge stronger from recession if they are into making use of the tools, processes in accordance with the strategies when the time is right. These companies are place themselves in the market in a position to gain acquire a new and complementary business. There are many challenges that are faced by the HR when a firm is is into aggressive globalisation. Some of them are coordinating the activities that are done by employees in different parts of the world. There is also a continuous change in the global environment and keeping up with the changes and making the organisations culture adaptable to these various cultures is a real challenge to the HR. There is also a requirement of building on the rate of the global awareness across all the departments. The HR department itself have to become multicultural for the purpose of facing the challenges.

According to Reuters (Oct 5 2010), the largest among the Big Four accounting firm is planning to invest their money in emerging markets including India, China, South East Asia, Russia, Middle East and Brazil. They ended with revenue of $26.58 billion in the fiscal year of 2010. The major plans also include increasing the staff strength.

Cultural Differences in Parent Country and Host Country

The parent country chosen in the context here is UK and the Host country chosen is India. There always tends to a conflict between the home country and the host country where the organisational culture is concerned as people recruited would have a different though process in comparison to that of their home country. The model that is proposed by Hofstede can be applied for the purpose of higher level of understanding on the impact the cultures have on organisations. Cultural models are responsible for having consequences for the functioning of various groups and individuals even within an organisational level. Some of the examples for them are relation to authority, the conception of self including the ego identity, primary dilemmas of conflict and dealing with them (Mooij & Hofstede, 2010).

The model that is suggested by Hofstede distinguishes the various cultures in the world on the basis of five dimensions. These dimensions include power distance, individualism/collectivism, masculinity/femininity, uncertainly avoidance and long/short term orientation (Hofstede & Hofstede, 2005).

Hofstede’s indexes are also well supported by the various models of research that that were conducted by many other researchers. The power distance is defined as the expectation of the unequal power distribution with in a country, society or organisation by less powerful members. Everyone has his/ her place in the hierarchy in the case of a large power distance culture. The status of one person should be clear and thereby others know the importance of the status. The concept of individualism and collectivism explains the extent to which people take care of themselves and their family. People are ‘I’ conscious in the case of individualistic cultures and ‘we’ conscious in the case of the collectivist cultures. Bonds are created slowly in the case of individualistic culture as they take time to gain trust. Achievement and success are the dominant values in the case of a masculine society where as caring for others and quality of life is important in the case of a feminine society. The importance of performance is higher in the case of the masculine culture where as work is not shared in the case of feminine cultures among the husband and the wife. People tend to be threatened when there is no certainty or too much of ambiguity. Some culture prefers to avoid uncertainty. In that case the there is a high requirement for rules and formality. People in regions oriented on high uncertainty avoidance are not very innovative as they are not very open to change. The future oriented perspective is equally important in understanding the nature of the cultures. There is centralisation, and sense of shame when it comes to long term oriented cultures where as the concentration is on steadiness and stability along with respect for tradition in the case of short term oriented cultures (Hofstede & Hofstede, 2005)

Britain is a country that has a lower ranking in the case of power distance. This means they do not believe in creating inequalities and believes everyone should be treated equal. UK is also very high on the basis of the individual scores. Britain is also a masculine society which means they are highly oriented and driven by success. The scores of uncertainty in the case of Britain are low which means that they are open to innovation and change. Britain has short term orientation and has a large amount of dedication and respect for the history and tradition (Hofstede, 2012).

It can also be seen that the emerging markets are the ones that Deloitte is investing in and the following figures will depict some of the major differences between the two cultures.

The score of India in the power distance dimension is very high and it shows that there is an appreciation for hierarch and a top to down structure. The following words could be used where in the culture of India is concerned. One of it is dependency on the boss to take decisions. They work hard and give loyalty to their bosses for they earn. There is a higher amount of centralisation in the case of power. India also have clear collectivist trait and is concerned about the welfare of the group he/she is in. this would also mean that the actions and decisions taken by them are highly influenced by family, neighbours, friends and workgroups. India is also a masculine society especially in terms of depiction of power. India is also a cultural and religious country with millions of deities and holds abstinence and humility real high as superior virtues that requires to be practiced. Work is pivotal to them and success is of high importance to them. India has a medium preference for avoiding uncertainty. They are not perfectionists. India is a traditional country and the level of importance for tolerance and patience are very high. People need to be flexible to survive in the country. India is a long term oriented pragmatic country. There is a concept ‘karma’ that is really held high in the case of religion and philosophy where India is concerned (Hofstede, 2012)

On comparing the two factors it can be seen that the two countries are more or less similar in the case of the masculinity and tolerance to uncertainty. But all the other values vary from one another. This is one of the reasons why it would be slightly earlier for the firm to adjust in India. But one must be to ready to analyse and adjust according to the other factors.

Culture is of high challenging nature to the human resource department. The reason behind this is that management of the human resources will require a perfect analysis of both the internal and the external environments in an organisation.  In the case of any organisation the internal culture is depicted by the culture of it internal work force and the external culture by the enterprise and institutional culture. The issue arises because these two cultures here are highly influenced by the socio-political and the physical context. According to Kanungo & Jaeger (1990), the Socio-cultural environment influences the enterprise environment including the external and internal culture and also the HRM practices.

A prominent role is played by the corporate cultures in the case of implementing successful strategies.  Managing cultural diversity is also a part of Deloitte’s strategy. They are aware that they have a culturally diverse talent. Competitive advantage can also be delivered with the help of the same. The three strategies that are adopted are career development, attraction and retention and creativity and innovation for managing the culturally diverse talent. Deloitte ensures that there is hope and opportunities for the employees to climb up the ladder sand therefore realise their dreams in relation to their careers (Deloitte, 2012).

The organisations sustainability is also highly dependent on attracting and retaining the best quality talent that is available in the market. The reputation as an employer of choice is very much important for being a culturally inclusive workplace. Deloitte also targets at increasing the cognitive diversity in the teams as productivity and innovation is more in a culturally diverse atmosphere. Deloitte also always upholds the importance of the various having an open mind, different opinions, identities, cultures, professions and perspectives (Deloitte, 2012).

Irrespective of the various strategies that are implemented in Deloitte management of the cultural is a challenge to them as it influences the way and thought process through which many people work in an organisational atmosphere. There are even chances that the cultural differences in the top management level influence the chance of success in the case of mergers and acquisitions. Also, irrespective of having a strong corporate culture, the national culture will also play a prominent role in the case of shaping culture of the organisations. Most of the culture s that are followed by the host countries are unique to the country and not respecting them are bound to create conflicts in an organisational atmosphere. It’s even more difficult to handle these cognitions because it is acquired by the employees through a life time of social learning and socialization and would be unfair to ask the employees to keep it aside when they are working for an organisation (Chew & Sharma, 2005).

Human resource management and Deloitte

It can be said that the organisations are oriented on future rather than the human societies that are highly oriented on the present or the past. This is one of the reasons why strategising is highly important to them.

Recruitment and selection

One of the core functions of HR is recruitment and selection. Recruitment is a process in which the employees who are capable are pooled into the organisation. The employees who are pooled into the organisation are are then selected by the managers and others for by making use of instruments. This role is of utmost importance as it plays a pivotal role in the shaping the performance and effectiveness in an organisation. It is highly important as they also provide competitive advantage to the organisation in comparison to the other leaders. It is also a fundamental way of functioning in an organisation and this is also one of the major reasons for HR to highly concentrate in getting it right. the amount of difficulty an organisation has to go through because of choosing unsuitable employees are immense as it effects the performance of the organisation as a whole and stagnate the development strategies that are chosen by the organisation (French & Rumbles, 2010).

Culture of a country also plays a pivotal role in the organisation of the HRM practices and policies. Cultural diversity is also resulting from the internationalisation of the world economy. This means that HRM policies for recruitment and selection and all other roles have to be designed in such a way that the whole world is taken into context while the policies are designed. The policies and the strategies that are taken should thus address the cross cultural concerns. There is also an increasing requirement of the comparative context while the process of recruitment and selection in being done (Milikic, 2009).

On analysing the cultures that are oriented on collectivism (example: India), there are high chances for internal recruitments on comparison to people who are from cultures of high power distance orientation. The prime opportunities are for internal recruitment than for external recruitment. The emerging markets also have a tendency of maintaining high uncertainty avoidance and hence the employees prefer to maintain the status co by going for internal recruitment. This will be a new aspect to Deloitte as they are oriented on low uncertainty differences (Aycan, 2005).

One of the major issues in relation to this is also that staffing in preferential programs will take in employees who are from groups that are disadvantaged. There are also chances for racial minorities as in the case of women and older people. The opportunities that are usually given as in the case of UK will not be seen in the emerging markets and there is no concept of equality that is usually established. The chances of organisations or the top management to outsource hiring is low in the case of the collectivist countries i.e. emerging market places when compared to that of the individualist countries (Hofstede & Hofstede, 2005).

Compensation Management

The effectiveness of an organisation is highly dependent on the effectiveness of its people. The employees should be supported seamlessly for them to perform better for the organisations. HR also has a difficulty in allotting proper performance allowances for the employees. The requirement and the complication of the financial requirements are ever increasing. Deloitte has integrated software for deciding the compensation. Compensation is also a source of high level of motivation for work and performance. As far as Deloitte is concerned Deloitte has concentrated on high compensation levels and performance appraisals for the improvement. Compensation is also given to them through higher level of training and other internal awards. This gives them a better level of performance. The salaries that are provided by Deloitte are also highly dependent on the country and the level in which the employee is working (Firm consulting, 2011)

According to Deloitte (2012), a complex set of regulations and internal revenue code should be adhered to at the time of setting the compensation programs and benefit programs of the company. There are many challenges that are faced by the HR because of the tax regulatory environment.   

Poor compensation is also one among the reasons why the employees leave the organisation. So this means that there is a high level of requirement for the employees or he should be kept in the organisation with a reasonable level of salaries and growth opportunities. Labour laws in most of the countries are now becoming very protective of the employees and this is also a challenge to the budgets that are usually set by the company. The payment rates are also increasing now in accordance with the requirements of nations. Compensation issues may also lead to conflict between the employees.

In the case of compensation, it is expected that the high power distance countries have negligible chances of implementing rewards that are based on performance in comparison to the low power distance country. In India compensation rates have higher tendency to be aligned with the seniority of the people involved than that performance rates in the case of cultures that want to avoid higher rate of uncertainty. there are also chances for group based rewards and compensations in the case of collectivist societies where as individualistic cultures are prone to be satisfied with rewards based on professional talents of an individual (Aycan, 2005).

Recommendations and Actions Plans for Expansion 

It can be said that Deloitte has taken the right strategy to increase their reach and mark their presence in the emerging markets. Deloitte should hold on to corporate values and culture when they are into aggressive expansion. Here are some of the recommendations that Deloitte could take in for Deloitte is into consulting taxes and it is very important for them to be honourable to the ethical and the legal systems that are followed around the country. There are also chances that compromises with the client will prove fateful the consulting firm. The fall of the Enron has set an example for this.

Deloitte should work on overcoming the weakness they experience as a brand. Some of them are to have increased brand awareness. The brand is not yet recognized by many in the emerging markets. This limits the availability not only of the clients but also of efficient and deserving staffs. Their global delivery should be contracted on as their customers are all mainly from UK and US.

 The penetration into Asia has increased, but it still has to be maintained at higher levels as there are chances for the emerging markets to be well developed. This also means that there are many MNCs and clients who will be ready to take services from Deloitte and it paves way for better growth.

Deloitte should also get into related diversification. They are bound to face challenges that arise from different parts of the world. They have head on competitors and software brands that are pre-established in IT field and leaving their foot print would prove difficult. This is a challenge that can be overcome by increasing marketing strategies and implementing growth strategies and not compromising on the quality of products.

To summarise the plans suggested are

• To work on global integration especially in the case of their consulting business.
• Spread the awareness of the brand gradually to the extent the relevance and awareness of the brand.
• Competitors should be watched as they can be either good partners or service providers in the future. It is also important to think ahead of others to establish a market position.
• They should concentrate on producing local solutions in the markets of Asia.

Conclusion

It can be concluded that human resource plays an important role in controlling all the functions in an organisation especially because they mediate between between the management and the employees and the firm and the employees. This is one of the reasons why HR now plays an important role in strategic planning in the organisation.

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