Consulting Organizations Like Mckinsey Management Essay

Consulting Organizations Like Mckinsey vigilance EssayConsulting organizations corresponding McKinsey Company, Roland Berger Strategy Consultants, Boston Consulting Group, non provided be leaders in their respective fields of operation besides typify planetary reach with their branch offices spread all around the population (Carvalho and Cabral-Cardoso, 2008). Such big consulting organizations though be mostly found in the USA, yet they argon present in almost all the economical regions. They ar considered the harbingers of sensitive bonkrial and organizational concepts that enjoy global validity. In view of the unprecedented increase in the number of organizations having potential to planetaryize, multinationality of focus consulting has by itself become a means of competence and line (Richter et al., 2008). As much(prenominal), the general trend in future could be that global companies may progressively require the operate of global consulting houses. in th at locationfore, extending reach of the consulting organizations to planetary guests could become imperative and present mod opportunities of growing globally (Landriscina, 2012).In the UK, only a few consulting organizations exist that enjoy considerable world-wide clout. This is evident from their a wide operations, including those that fork out unlike consultancy only when do not take in any branches abroad. In the UK, most of the consulting companies provide services to refined and medium organizations. Their prospects in the international atomic number 18na, the impediments they face, and the steps that can enable them strive success and grow internationally, are dealt herein (Graubner and Richter, 2003).Donnelly and Dowling, (2010) said that the substance of so one(a)r suit studies brings out that foreign operations just depended on contingency and the availability of profitable opportunities, and were not becausal agency of transcriptionatic strategies of in operation(p) globally. As such, afield assignments were considered temporary and the regions were changed as the opportunities arose because of globalization of clients barter operations. However, in certain cases, promotional efforts also contribute to the development of consultancy overseas. Generally, proper planning and diligently create a foreign market is seldom resorted to (Budhwar et al., 2009). Hurdles in the expression of create external markets by establishing subsidiaries are galore(postnominal), and one can forebode considerable risks when launching operations in new markets, particularly in BRIC countries, that is, Brazil, Russia, India, and China that have over time acquired overmuch significance. If it is aimed to serve local anesthetic anesthetic anaesthetic customers also besides the western subsidiaries, it is essential to comply with the local conditions and lock low- employ local staff. It is only then that an organization catering in consultancy ser vices can lam successfully. In case of subtile and medium consultancy organizations, it is these factors that cause difficulties.ALTOMI ASSOCIATES AND ITS INTERNATIONALIZATION STRATEGYThe present case study pertains to Altomi Associates, a UK based organization engaged in providing leadership and management instruction to client companies located in UK but some of them operating internationally also. As such, Altomi also organizes training programs abroad. Its training programs relate to third sectors, such as manufacturing, retail, and public sector. In the beginning, the training services were catered from the home(prenominal) setup, but afterwards the order established bases elsewhere also, housing a small aggroup of administrative staff to meet the requirements of clients at those places.As per Balbinot et al. (2010), it is imperative to spring up an internationalisation outline for a company planning to enter international business since it is an important determinan t of success. The significance of meticulously adoptd system of internationalization depends on diligently conducted market research and appreciation of the true sum of such a strategy. Altomi Associates plan to spread their business to otherwise countries, particularly in BRIC countries where they anticipate considerable growth opportunities.Altomi Associates intend to forge relationships with lively independent local operators in Brazil, Russia, India, and China as franchisees who would cater their training programs to clients there. In the medium term, they propose to put up offices in those areas e genuinely as new start-ups or by taking over local training companies or by forming joint ventures. The ultimate aim is to render training services to MNCs across their global facilities.INTERNATIONAL HRM check to Armstrong (2012), many big MNCs are in a position to ably manage their international operations, such as marketing, technology, and finances. However, there are others who have not been able to manage their HR effectively. IHRM is crucial for MNCs for exercising control and addressing cross-ethnical issues, internal as well as external. MNCs face many more problems as compared to domestic organizations on account of geographic distances, cultural disparities, international competition, issues related to language, and governmental parameters (Harzing and Pinnington, 2010). Stolt (2010) observes that IHRM and HRM do not differ much as their aim is to achieve the same objective of gaining competitive edge for their organizations and in this respect have to confront similar internal and external environmental factors. It is thus demand for HR conductors in MNCs to fully understand the obtaining political environments and healthyities concerning labor in swarm countries.An international HR manager of necessity to understand the implications of flocculent and toilsome HRM as related to domestic business and concerning foreign subsidiaries (Mathur and Gupta, 2011). In case an organization assigns great significance to its employees and places much value to their participation, then the organization is considered to be practicing soft HRM. If the HR manager has adequate understanding of the differences between the two types of HR, then he willing be in a position to adopt the right HR policy with respect to each plain (Dickmann, 2008). The hard approach, on the other hand, corroborates with strategic HRM, is concerned with reducing costs and is part of the top managements function (Budhwar et al., 2009). Dickmann (2008) describes soft HRM as based on resource perspective of the employees and pertains to egalitarian culture, organic organizational structure, broad particularization of jobs, pay packages as per abilities, sacramental manduction of profits, and the existence of a system of direct communication with employees. Hard HRM, on the other hand, relates to such HR policies that follow the prescribed business strategy , practices contrary approaches as per the categories of workers and complianceing to stringent organizational procedures (Gluesing and Gibson, 2006). Academics, however, have been concentrating on the soft approach for some time.Each country professes characteristics that are specific to it and which have a direct impact on HR practices (Sparrow and Wu, 1997). A UK company establishing a subsidiary in Japan will find it hard to practice soft HRM in that country, as Japanese workers are alter to work under hard HRM practices (Barney and Wright, 1997).CONSULTANCY INTERNATIONALIZATION THEORIESThe important theories are discussed at a lower placeStatic hypothesis This theory comprises such concepts as theory of growth, internationalization theory, and elite system. According to Sparrow (2009), there is no empirical attest whether these theories are applicable to SMEs since these have been evolved in the context of MNCs.Stage theory This theory prescribes implementation of the pro cess of internationalization by stages (Harzing and Pinnington, 2010). Several vexs are available concerning this theory, such as the Uppasla model, lucre model, and the model related to innovation. The Uppasla model advocates gradual implementation of internationalization over a time with fierceness on step by step learning and understanding of foreign markets (Griffin et al., 2010). According to Collings (2012), the network approach pertains to the impact of the organizations level of internationalization and the tip of internationalization of the target markets. The innovation related model, as per Dowling et al. (2008), states that innovations in management systems locate the successive stage in the internationalization process.International new venture theory According to Sparrow (2009), this theory deals with organizations that have internationalized from the very beginning or immediately after the start.The consultancy sector differs from other sectors in that it submits to easy pliability and speedy developments as per the demands of the market wherein both small and big organizations exist (FEACO, 2004). The demand for consultancy services has been developing quite turbulent resulting in their operations reaching across borders. Organizations rendering consultancy services go international due to several reasons. According to Brett and Kern (2006), the main reasons are location of clients, exploring new markets, or the market being a developing one.There are several approaches that can be deployed while internationalizing, such as export, foreign direct investment (FDI), or entering into cross-border collaboration. As per Graubner and Richter (2003), though export is an important component of internationalization, yet organizations are increasingly adopting the route of FDI. Cross-border collaboration is a preferred mode in case of SMEs since they are not in a position to afford the ask resources and are vulnerable to many risk factors (Carval ho and Cabral-Cardoso, 2008).According to Stolt (2010), SMEs not only lack enough resources, but also capital, and managerial expertise. As such, they primarily face many hurdles while internationalizing their operations. Such impediments are of three types liability of foreignness, liability of newness, and the liability of smallness. Therefore, it would be necessary for them to take these liabilities into friendship while internationalizing. As per Graubner and Richter (2003), SME consultancies can also confront the problem of establishing new networks.ISSUES EXPERIENCED IN TRANSFERRING HR POLICIES AND PRACTICES ACROSS BORDERSSchuler and Jackson (2009) consider that organizations operating internationally are often urged to implement HR policies and practices uniformly in all of their global operations. Such a situation arises because of the company having been by-line HR practices since long in accord with the domestic parameters. It is thus necessary to take into account the domestic as well as foreign country factors while evolving IHRM strategy. There are countries whose laws are oriented to entertain employees interests, while many other countries favor employer interests (Griffin et al., 2010). Muller-Camen and Brewster (2008) mention hurdles like lack of experience and understanding, cultural disparity, and inadequate resources that companies generally confront in international markets. As such, it is desirable to implement HR strategies that accord with the legal and political parameters of the host country.IHRM while specifying job profiles and task parameters to be enforced by the foreign subsidiaries, should consider the availability of suitable workers for the specific jobs (Harzing and Pinnington, 2010). internal employees having compatible skills and experience can be deployed but it gives rise to issues related to compensation and reward systems (Stolt, 2010). According to Griffin et al. (2010), people recruited from the host country wou ld be ignorant of the parent companys vision, mission, and objectives.FACTORS RELEVANT FOR THE DEVELOPMENT OF INTERNATIONAL appointee POLICYComplexity of Operations The complexity comes into flirt when operations are spread over many countries and employees belong to different nationalities. These two variables play a crucial role in differentiating IHRM and domestic HRM (Schuler and Jackson, 2009). heathen environs According to Pham and Hongyu, (2012), cultural ignorance can generate adverse feelings about the host country and its people and a desire to return home early. Cultural disparities can be interesting only for some time but in the long run may look shocking to the expatriate. volume belonging to diverse cultures harbor digressing aptitudes, differing dispositions, and dissimilar beliefs (Harzing and Pinnington, 2011). Paying scrimp attention to these aspects often results in an organizations failure. Richter et al. (2008) advise that an organizations recruitment and related policies should accord with the host countrys culture and HR practices. Working in new cultural environs can create difficulties both for the local workers and the expatriates.Standardizing Pay and Conditions According to Sparrow (2009), emoluments and working conditions differ from country to country and are captivated by the local market environments. Therefore, MNCs need to ascertain the intrinsic and extrinsic factors obtaining in the host country (Harzing and Pinnington, 2011). A significant task before the IHRM is to evolve viable compensation and reward systems for implementation globally. While evolving an international mannequin of remuneration and reward, an organization should take into account two basic concerns, the first-class honours degree being that of comparability (Harzing and Pinnington, 2010). According to these authors, remunerations given to workers should not only be internally comparable but also should conform to market environments. The paramet ers that influence the fixation of remunerations and salaries comprise the accessibility to expatriates and local skilled hands, the existing wage structure, and the host countrys regulations. Harzing and Pinnington (2011) opine that an organization should apply different parameters for evolving pay system for each country. Altomi Associates need to develop viable reward systems for their local workforce engaged in rendering services internationally and addressing the issues of standardizing pay and conditions.HR STRATEGY FOR ALTOMI ASSOCIATESAn organization or its HR setup has more than one action for aligning HR strategy with the local parameters and integrating it globally. There are four main alternatives that can be thought of on with their respective costs. These areLocal AdaptationInternational strategy This strategy is appropriate in cases when foreign business is not much and involves absent of knowledge from central headquarters at insignificant costs.Multinational stra tegy In this case the affiliates enjoy autonomy and their systems are oriented towards local conditions. Benefits of cross-border standardization and learning are meager and coordination expense is the lowest.Global integratingGlobal strategy This strategy yields benefits on account of standardization of policies and practices, but is mettlesomely centralized, lacks responsiveness, faces hurdles due to fragmentation of markets, cultural disparities, policy implications, and entails high costs.Transnational strategy It accrues benefits resulting from globalization, local adaptation, and simultaneous cross-border learning. However, the expense involved is the highest.In such a scenario, every organization will have to determine its own approach for global integration depending upon the prevailing environments (Harzing and Pinnington, 2011). The approach could vary in case of executive violence and skilled workers. In todays circumstances, the preferable course of action could be to dispense with local self-determination and domestic country preference (Stolt, 2010). The UK organizations that have achieved success generally followed globally integrate HR policies. Incorporating refinement and effectiveness in the global reward systems, transferring personnel every now and then from one country to another, and instituting training programs with global dimensions, enable transferring crucial expertise, result in achieving speedy transfer of skills, outcomes of innovation, systems of role control, and cost-effective methods of manufacture (Donnelly and Dowling, 2010). Though at present, the country managers enjoy indecorum concerning HR practices, yet the thinking now is to nurture global managers, integrated policies, and foster culture with global dimensions.The suggested HR strategy for Altomi Associates should comprise such a vision and guidelines as are mutually oriented, nurture broad behavior, fosters mutual trust, forges global cooperation. The decisio n-making process should include decision-making committees that have global perspective, are based on communication between the product, country, and field experts in the network (Carvalho and Cabral-Cardoso, 2008). Suitability of staff should be based on qualification earlier than on country of origin (Budhwar et al., 2009). Human resource development should be through international networking and incorporate educational advancement, overseas placement, and flexibility in dealing with issues concerning personal maintenance. The strategy should incorporate appraisal systems and cross-border advancement opportunities that are in tune with the international systems and practices. The strategy should also have a policy that corroborates with the main organizational objectives.