Paper tittle: Identifying career management solutions/practices in Polish organizations developing international activity Name of author: Alicja Miś, prof. CUE, dr.hab Affiliation: Cracow University of Economics, Cracow, Poland e-mail address: alicja.mis@uek.krakow.pl 1 Identifying career management solutions/practices in Polish organizations developing international activity Identifying career management solutions/practices in Polish organizations developing international activity. Abstract The main aim of this presentation is to show how Polish organizations shape their international employees’ careers. Data illustrating the following deliberations result from empirical research conducted in 2013 and 2014 at Cracow University of Economics. 50 Polish companies operating in the international market were subject to the research aiming at specifying their personnel function, including the expatriates’ management. The research was based on survey technique, namely human resources managers as well as experts from HR departments filled out a complex questionnaire. The study indicated differences between the organizations in question, both as for the understanding of careers and the structure of career organizational system. The collected data revealed the dominating attitude to the selection of techniques and tools for shaping employees’ careers as well as diversity among addressees/recipients of such practices. Also, it indicated the existence of differences between practices concerning expatriates’ and head office employees’ management. The basic limitation of the research was the size of the study group which was too small to perform a statistical analysis. Another limitation was the dominant structural attitude to the perception of a career in the organizations, namely individual intentions in this respect were not reflected in formal techniques and tools. Empirical results show that practical solutions existing in Polish organizations depend on their size and the level of their internationalization. However, they may prove useful for creating a scheme of expatriates’ management which would be more adequate to the Polish system and at the same time which would take into consideration employees’ intentions. Key words: international/global career, expatriates management, personnel function 2 1. Introduction In the source literature a lot of attention is paid to human resource management in companies that have their branch offices, agencies or subsidiaries in other countries (Pocztowski 2012, Petison 2008, Brewster&Suutari 2005 and others)1. Expatriates play an important role in places where companies try to locate their resources. Globalization makes this aspect of their functioning crucial for their position in the market (Stor 2011, p.13). A lot of authors indicate the advantages of a reasonably-shaped system of expatriates’ management, namely: better control, increase in employees’ technical skills and knowledge as well as staff development opportunities through a particular path of career that is the so-called “international exposure”. What is more, the development of employees is seen more and more widely, not only as a several months’ stay but also as deep internalization of foreign culture during several years’ work abroad. Here however a doubt occurs concerning preparation of the abovementioned stay by the parent company, namely if it is planned in a way that enables the optimum use of the mission time or if it is indeed developmental, exerting strong influence on the individual’s career. There are not any elaborate and fixed practices in this respect that would serve as a model which could be adapted to particular organizational conditions. The problem of international career management gains in importance as a result of supraorganizational processes that pose challenges for corporations. A career understood as a development of an individual takes place in a broader framework: supranational, global and transnational. Its clearly individual character in international companies gets broader, neutral profiles and in the processes of expatriates’ management certain specific instruments are used. Authors and researchers dealing with this phenomenon consider globalization and, contributing to it, processes of internet communication as well as a developing knowledge economy and increase in individual mobility reasons for changes in the understanding and development of individual careers (Thomas, Inkson 2007, p. 115) (Przytuła 2014, p. 43 et seq). Cooperation and strategic alliances create new circumstances. Decisions made in one country influence a career path of a person working in a different country (Human Resource Management in Processes of Fusions and Takeovers, 2004, trans. mine). Therefore, a question arises which at same time is the aim of this speech: do and how do international organizations shape their international employees’ careers? What are the possible 1 Distinction between legal forms of dependence between a parent organization and a subsidiary is not a criterion differentiating companies in the presented text. Their interchangeable use is therefore purely stylistic. 3 management practices serving to build their international positions through the shaping of individual employees’ careers? In the research we also sought answers for specific questions: is there a formal system of planning and managing expatriates’ careers in the companies under examination? What are the tasks carried out within such a system? Who performs tasks relating to expatriates’ career in the organization? Are there any differences between the shaping of local (head office) employees’ and expatriates’ careers? And finally: are the practices connected with career management addressed to all the employees or merely to specific groups or people? 2. The understanding of an international career: its essence and context. Globalization2 can be described as a lack of borders and barriers in the exchange, “crystallization of the world as a single place” (Robertson 1995, p. 38)3. It may therefore serve as a descriptive category for employees’ careers developing in the globalized world. The traditional understating of a carrier, that is a sequence of work-related experiences within one person’s life cycle (Arthur, Hall, Lawrence 1989), is more and more often complemented with a phrase: “when a part of this sequence takes place in more than one country (Dickmann, Baruch 2011, p.7). It is also a more individual approach to a career, stressing its “internal” character, paying less attention to the “external” one. The latter however is essential when it comes to an organizationally planned career. Research conducted in Polish companies operating in the international market points that the problem of career is noticed, but understood narrowly (Human Resource Management in Transition. The Polish Case, 2011, p.122). Most frequently it involves occasional help with regard to knowledge and practice, sporadically preceded by individual career planning. Employees sent on foreign missions by parent organizations are more expensive than the ones in the country due to the roles they are supposed to play on behalf of the organization. Such roles may be threefold: a role of a controller, of a coordinator and of a person transferring knowledge and skills (Paik, Sohn 2004). The first role, considered fundamental, consists in taking up actions controlling the strategy and the operation of the subsidiary company in favour of ensuring the integrity between the parent company and the local one, irrespective of cultural differences between countries. The role of a coordinator consists in cooperating with the local board in order to achieve common goals. Finally, the role of a person transferring knowledge Mindful of a possible distinction between the terms „global” and „international”, both terms are used synonymously. 3 Another definition of globalization was proposed by B. Parker: „Increasing the permeability of traditional borders, including physical borders between nations/countries, but also between economies, branches and organizations as well as, less evidently, between norms and cultural assumptions” (Parker 1998, p. 7). 2 4 and skills concentrates on implementing such knowledge and skills development of employees in the local organization, indispensable to the company’s goals, that would comply with international standards. Also, this role is associated with preserving the culture of the parent organization in the subsidiary company. Expatriates’ problems with performing a role have long-terms results both as far as time and performed tasks are concerned. It is more difficult to find a substitute properly prepared to fulfill a given mission and also it takes some time to prepare the expatriate’s family as the effects of an insufficiently organized mission have an effect on the whole foreign branch office, not only on the particular position. In a model fashion the problems of expatriation may be depicted in a triad: “structure – culture – context”. The first of the components – “structure”, is deeply rooted in an organization. Different types of structures shape different career opportunities, determining available current and future positions. Internationalism of a company increases such opportunities. “Culture” is a specific link between an individual and an organization: an employee is socialized in his/her national culture and in an organization with its own culture, including a supranational element. The last element of the triad is “context” which has a strictly individual character and which involves a system of such characteristics of an individual as their sex (Altman, Shortland 2008), age, education, family situation (Bozionelos 2009) or a stage in the family life. The triad: “structure – culture – context” is a construct helpful to analyse different types of international careers, both organizational as well as initiated and made on one’s own (cosmopolitans, freelancers). It demonstrates differences between such types of careers both as for the type of work and the initiative connected with it, resulting in a specific trajectory of career development, its pace and prospects. Metaphorically speaking, it is either a model of “ladder rungs” or of “a river” winding without any borders (Crowley- Henry 2012, p. 130). 3. Expatriate career management in a multinational company The organizational perspective in career management in descriptive terms is the construction of a space for shaping an individual career within the organization, taking into account the opportunities created by its international character [Miś 2007]. The specificity of the development of employees assigned to work in culturally diverse conditions of an international organization results from the special status of knowledge, recognized as the criterion for the success of a foreign mission, and thus the organization's success. A classical scheme of the training and development process is modified with elements that increase the likelihood of successful implementation of the mission [Dowling, Festing, Engle 2008: 138; Baruch 2004: 5 218]. Moreover, it is under the strong influence of the national culture or is subject to multicultural interactions. Expatriate career management within the personnel function is based on the organizationmade training and employee development system, employees displacement system and preliminary visits system, the latter of which governs the activity of entities initiating and executing the process of careers shaping, and then evaluating its effectiveness. The structure of this system is a derivative of the organizational culture, and the latter stems from the broader culture. Additionally, it is a consequence of the ethnocentric, polycentric, regiocentric or geocentric pattern adopted in the organization (Baruch 2004, p. 227).4 The expatriate career management consists of a number of elements, which, in chronological order, are as follows: foreign mission planning, recruitment and selection of candidates, preparing for expatriation, development, motivation and evaluation during the mission, preparing for repatriation, placing in the parent organization after the return. Each of these subprocesses is given a particular shape in the international organization. The criteria for recruitment and selection are changed, the remuneration for work is determined in a different way, the method of employee's effectiveness assessment is changed in the course of the mission, and training and development gain additional components. What structurally differentiates careers management process of employees in national and international companies is the emergence of trainings preparing for departure and then for repatriation. The former are crucial for the success of the mission and the latter constitute a priority for further relations with the parent company. The practice of international organizations in shaping individual careers is varied to the same extent as the method of implementing the personnel function of these organizations.5. 4 In the ethnocentric model, employee development is carried out in the parent company and copied in the branches. [Thomas, Inkson 2007]. Career development in the parent company is higher valued than the opportunities offered by the expatriation process. Its objective dimensions are the standard that is spread to affiliated companies. In the polycentric model the priority is given to specific legal, cultural and economic conditions, regardless of whether we are dealing with the parent organization or the subsidiary. The value of employees development is evaluated from the local perspective. In the geocentric company national solutions cease to dominate, but only the best solutions count. The career achieves the global dimension: the employee shapes it, according to his own needs by selecting this branch where the best opportunities are waiting for him. Its location is of secondary importance. In the regiocentric company, the procedure is similar to the previous one, but the range of used and implemented development patterns is limited to the company and its subsidiaries operating in a region that has been distinguished due to some criterion (ethnographic, political, religious and others). For more information: [Baruch, 2004] 5 The data reported in this paper are derived from studies conducted in 2013 at the University of Economics in Cracow by the Department of Human Resources Management on a group of 50 Polish companies operating in the international environment. The purpose of the study was to diagnose the specific nature of their personal function (including shaping the careers of the employees). 6 Studies show that in a large percentage of companies being diagnosed, the issue of career planning is narrowly understood: as a succession planning and creation of the reserve personnel, it occurs and takes the form of compiled written procedures within the personnel function (76%) in comparison to the remaining number of companies with no formal methods of operation (24%). Moreover, in 22% of the companies surveyed, some of these processes are computerassisted. In certain proportion of companies (38%) going on a business trip abroad is associated with employees' career within the meaning of the expatriate's "global competence development", slightly more frequently through shorter trips (up to two weeks - 20%) than longer ones (several months - 18%). The interpretation, which is possible here, suggests that for organizations, sending a candidate to work abroad is intended to extend the global competencies at its disposal. However, for the employee it is an intentional action, which addresses the growth in employability. Studies undertaken and cited here were to reveal, within the issues related to the careers management of employees working in international companies, the practices undertaken by these companies. It was assumed that the structure of the problem, occurring in the national company, is specific for companies operating on the transnational market. Therefore, if we assume that in the career management the shaping of this process and its application in relation to the target groups of individuals are important factors, then, the presented studies have shown that in slightly more than half (58%) of the surveyed organizations there is a system of career planning and management in relation to employed (and expatriated) workers. However, only in 22% of the companies it is a formal process, which makes it immune to individual impacts due to the lack of transparent procedures and steps as well as possible to use tools. This also means that nearly 80% of companies undertake unexpected practices, which also do not allow for their intentional use by individual employees. As a result, organizations cannot fully determine the "final product" and take effective actions that profile it according to their needs. 2% of the surveyed organization reveals a "common" structure of the planning and career management system, which confirms the absence of comparability of actions undertaken with respect to employees and limits their influence (intentionally shaped career) on their shape and course. 14% of companies participating in the survey make decisions on individual careers in a situational manner, which means no particular pattern, lack of plans and opportunities to actively shape it in a particular time perspective. The largest group of the surveyed companies (36%) stated the lack of such a system, where ad hoc measures occur. This indicates the failure to recognize the relationship between employees' departure on missions abroad and the "profit" from it in the form of skills developmental, building a network of relationships, better 7 adaptation of the organization to the local cultural environment, knowledge transfer in both directions and others in individual terms of adaptability and employability growth, which is a right step in the career development. 6% of the surveyed companies do not undertake any steps towards the development of individual career. In these companies, it would be worthwhile to examine the percentage of employees, who leave them after their return form a foreign mission, because it is a strong predictor of the emergence of the intent to leave the work [Baruch, Steele, Quantrill 2002: 660]. The relevant data are presented in Table 1. Table 1. Does the company have a system of employees career planning and management International company operating in Poland Answers Number 1. Yes, there is such a system and is a formal process 2. Yes there is such system, but it has a common character 3. Yes, different situational measures are undertaken 4. No, but actions are taken when the need arises 5. There are no steps towards the development of individual career Source: Data derived from the KZKL survey research. % of the group 11 22 11 22 7 14 18 3 36 6 Another issue comprising the structure of the career management system is a set of tasks that are implemented in practice and included on account of this system. Detailed data obtained in the studies are presented in Table 2. The number of possible solutions is very high and largely depends on the adopted level of detail. From the point of view of organization the task list may include analysis of specific competences of employees intended for expatriation, identifying the necessary training and cultural training, language skills, determining the succession, studying the suitability for expatriation, the study in terms of career orientation and others. From the point of view of the expatriated person, these tasks partially overlap, but there are also different ones: diagnosis of individual needs and expectations of employees, determination of the context (conditions) of individual careers the study of individual rate of development, the diagnosis of occupational personality and others. The reported studies have shown that the most numerous companies carry out tasks related to the "diagnosing of needs and expectations of employees" (64%). The result is the basis for cautious optimism; since it reveals a high importance attributed by organizations to individual career development plan, upon which the decision on the method of its shaping is made. 56% of surveyed companies carry out tasks that comprise the "diagnosis of developmental potential of employees." If the previous task has indicated that the organization tends towards an individual approach (need and 8 employee expectations diagnosis) to shape employee's career, the other reveals more organizational approach (structural). The diagnosis of the developmental potential is to give information on the possible directions of employee's development, resulting from his or her personal qualities, experiences and knowledge. Therefore, what is "past" is to be extrapolated to the future, thus functioning as a sort of guarantee within investing in an expatriated employee. Another most frequently chosen career management task/tool (38%) was the "determination of the possible number of positions to take". This tool is more associated with the repatriation, i.e. the return from a foreign mission and attempt to find a position for the expatriate in the parent organization, which is adequate to his newly acquired qualifications. This task has also an organizational nature, and its value is high. That is because, frequently, the proposal to take a specific position determines whether the employee will stay in the organization after the expatriation or not. The next two tasks, which are also of the organizational character and have the same frequency of selection (30%), are "determination of the sequence of necessary trainings" and "creation of the list of successors". They indicate the organizational orientation of the surveyed company, confirming the priority of development objectives of the company in relation to the individual objectives. Nonetheless, their implementation is conductive to individual creating of career path, associated with employee's plans, though not necessarily in compliance with his or her needs. The next most frequently indicated task was the "diagnosis of occupational personality" (26%). It is a general tool in the career management, which is non-specific for expatriates' careers. It has as much organizational significance as individual, constituting for both subjects information about the adequacy of the choices made by the entity within the career to his or her internal orientation based on personality traits. The task "assessment of individual circumstances of career development" was indicated slightly less frequently (24%) than the previous one. This career management tool is equally of organizational and individual significance: it makes it possible to identify opportunities and constraints of the employee in view of the planned expatriation or return from it. There were almost no indications for "determination of career indicators" and "diagnosis of the individual pace of development and development family grounds" (2% each). Both are important mainly in the individual orientation. Analysis of the data in Table 2 shows the dominant organizational orientation (structural) in shaping career management tasks (tools). This is consistent with the traditional understanding of careers, but incorrect in the context of the concept of a limitless career, a paradigm of which is somewhat represented by internationalism. Table 2. Tasks carried out in the practice of career management. Answers International company operating in Poland Number 1. Diagnosis of the needs and expectations of employees % 32 64 9 2. Diagnosis of the development potential of 28 56 employees 3. Determination of the number of possible to 19 38 take positions of the research work 4. Determination of the sequence of necessary 15 30 trainings 5. Creation of the list of successors 15 30 6. Diagnosis of the type of occupational 13 26 personality 7. Determination of career indicator 1 2 8. Diagnosis of the individual development rate 1 2 (biogram) and family grounds (genogram) 9. Assessment of individual conditions of career 12 24 development 10. Other: diagnosis of business needs 1 2 Source: Data derived from the KZKL survey research. (it was required to indicate all applied tasks – therefore, they do not add up to 100%) Another issue subjected to diagnosis in the study were the recipients of practices related to the career management of employees working in a multinational company. The study sought to determine whether these practices are addressed to all employees or differentiated due to specific criterion extracting a group or single persons. Studies have shown that they are not addressed to all employees but to particular groups. Such an indication was obtained from 36% of the surveyed companies. The answer "Yes, but it is differentiated with regard to positions held by the employees" was represented slightly less frequently (34%). This means that existing practices are addressed to all employees, but the offer is differentiated individually (or collectively) according to the criterion of the position held. We also saw equally frequent answers "Yes, to all groups of employees" and "Yes, but it is differentiated with regard to workers employed exclusively in the head (local) office and going on missions (expatriates)" (6% of the answers each). In the case of the first answer, the company addresses career management practices to all employees, regardless of their position in the organization, age, period of service and expatriation plans. In the second case the practices include specific, separated group of employees in the head office and intended to take up a foreign mission. As long as the first answer is understandable (universality of practices relating to the career management), the second answer means that the foreign mission is treated as the employee's career. Persons, who do not take on mission, do not develop their career. This raises the question as to the manner of recruiting expatriates to groups in these organizations. The analysed data are presented in Table 3. Table 3. Is the practice of career management carried out in relation to all employees? Answers International company operating in Poland Number 1. 2. Yes, to all groups of employees Yes, but it is differentiated in relation to employees working exclusively in the head % of the group 6 6 12 12 10 (local) office and these going on missions abroad (expatriates) 3. Yes, but it is differentiated with regard to positions held by the employees 4. Yes, but it is differentiated with regard to employees' age (generations) 5. No, such practices are undertaken only in relation to certain persons and/or groups of employees 6. With regard to the length of service Source: Data derived from the KZKL survey studies 17 34 0 0 18 36 0 0 Assuming that the employee career management subsystem is designed in international organizations so as to take into account the developmental needs and abilities of employees in the parent company's head office as well as those of expatriates, the reported studies sought information about the factors that are taken into account in the career management of both groups. The acquired data, presented in Table 4, show occurring differences and similarities. In relation to the employees at the head office, the most frequently indicated factors, taken into account in managing their careers, were: "the level of formal education" (88%) "the level of professional experience" (86%), and "commitment to work" (76%). The answers selected often, though slightly less frequently than the previous group, were: "achievement of objective on the currently occupied position" and "ability to work with others" (64% each), and "focus on improving skills" (60%). The answers: "ability to exercise power" (44%) "knowledge and support in the organization" (42%), and "employee age" (40%) occurred relatively less frequently. The least frequently chosen answer was the "ability of quick cultural adaptation" (18%). In relation to the employees sent on foreign missions the combination of factors taken into account in management of their careers, was as follows: the most frequently indicated answer was the "ability to cooperate with others" (74%) "achievement of objectives at the work post" (70%) and commitment to work (66%). The answers: "level of professional experience" (58%), and "level of formal education" (50%) occurred only slightly less frequently. Less than half of the choices were gained by the following answers: "focus on improving skills"(44%) "ability of rapid cultural adaptation" (40%)" as well as "ability to exercise power" (38%). Relatively rarest indications were the "employee's age" as a factor taken into account while managing his or her career (24%) and "knowledge and support in the organization" - 20% of the answers. Table 4. Which of the following factors are taken into account in management of the careers of the employees the head office, and which in the management of expatriates? Answers Head office employees (employed in the country) Expatriates (employees sent abroad) 11 Number 1. 2. The level of formal education The level of professional experience 3. Achievement of objectives at the work post 4. The ability of rapid cultural adaptation 5. Commitment to work 6. Age of an employee 7. The ability to cooperate with others 8. Focus on qualifications improvement 9. Knowledge and support in the organization 10. The ability to exercise power 11. Other Source: Data derived from the KZKL survey studies % Number % 44 43 88 86 25 29 50 58 32 64 35 70 9 18 20 40 38 20 32 76 40 64 33 12 37 66 24 74 30 60 22 44 21 42 10 20 22 2 44 4 19 4 38 8 Both analysed groups relatively frequently indicated "commitment to work" as a factor to be taken into account in shaping the career of the head office employees and expatriates (respectively: 76 and 66% of the selected answers). This factor is debatable as a predictor of success in career as seen from the perspective of not only individuals but also the organization. Commitment to work may augur well for the development of a career if it is associated with relevant formal competences and experience (in relation to the head office this assumption is met) and, above all, with ease in cultural adaptation (with respect to expatriates this assumption is not met). Other indications quite significantly differentiate the analysed groups. In the group of expatriates, frequently chosen answers were "the ability to cooperate with others" and "achievement of objectives at the work post". The first factor in undoubtedly important and can play a leading role in the success of a foreign mission. But we must remember about the specifics of the work post, requiring varying degrees of ability to cooperate. The second factor took the undue place. The effectiveness of achieving the objectives at the work post is a weak factor affecting the career development in the individual dimension, but quite often used in organizations as a criterion for decision on employees development due to its measurability facilitating comparability. Less strongly represented in the answers were such criteria as "the level of professional experience", "the level of formal education" and "focus on the skills improvement". Among them, in the group of expatriates, a developing career matches "the level of formal education" in a relatively weaker way. It is an important factor at the level of entry into the organization, but further path of individual development is shaped as a consequence of formal qualifications (among both head office employees and expatriates). This factor has been properly placed with respect to the head office employees. The place of "rapid cultural adaptation" seems logical as a factor of shaping individual careers in the group of head office employees; the selection of this criterion was rare in the group of head office 12 employees. However, its frequency in the group of expatriated employees was comparatively only slightly higher (but not the rarest in the group of less frequent choices). This factor seems to be crucial for expatriates in the success of the mission and career. Numerous publications emphasize the fact that the difficulties in cultural adaptation are nearly the most important factor of success [Dickmann, Harris 2005]. What is interesting is the disclosure of the importance of the employee's age as a factor in shaping his or her career in an international organization. It plays a minor role in the group of expatriates; it is more often taken into account in the career management of head office employees. Thus, employee's generation belonging is one of the criteria of the career arrangement in the head office, but among expatriates it plays no role. It is also worth noting that the importance of "knowledge and support in the organization" is barely perceptible in relation to employees sent on foreign missions and little higher in the group of head office employees. It is definitely a non-substantive criterion, given the more appropriate (the weakest) place in the group of expatriates. 4. Conclusions: effects and their cognitive and empirical implications. Expatriation as an organizational problem is more and more frequently a subject of research and its aspects relating to a career are more and more often considered a factor of success. Such issues grow in importance, among others because of a large percentage of notices handed in after repatriation, due to the lack of opportunities to discount new qualifications in the parent organization and sometimes even due to the lack of interest in them on the organization’s side (Stahl, Cerdin 2004). The research in question indicates the lack of one, generally approved and useful pattern of expatriates’ careers management, which does not mean however that there are not any attempts made for this purpose. Nonetheless, they have fragmentary, circumstantial character, often resulting from a particular case. Solutions existing in practice concentrate on the level of direct action. The research shows different operational solutions both as for the structure of planning processes and career management and as for their main actors, evaluation criteria, actions taken up within its framework and factors taken into consideration as to the planning of expatriates’ and local employees’ careers in an international company. The analysis of data gathered in the examination of a relatively small number of international companies proves how important it is to place the problem of careers in the organization’s strategy with the assumption that flexibility should prevail over stability. Flexibility is necessary due to changeable conditioning on a level broader than the national one. A more adequate usage of host country nationals and third country nationals will result in a more efficient activity in the international 13 market and building more attractive programmes of career management. It will result in a lower percentage of notices after a performed mission, which means keeping the newly gathered human capital. The results of the research have not only a cognitive character. Although they expand the knowledge of processes in human resource management, they are also a certain feedback for practitioners from HR departments of such organizations. They show the fragmentary nature of activities connected with shaping the expatriates’ careers and the possibility of better application of theoretical knowledge from this field. They may particularly assist in choosing and structuralizing the tasks of career management, planning individual careers and individualizing activities related to career development in an organization. The discernible difference between traditional and modern careers is the emphasis on learning instead of development adequate to an employee’s age. 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