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Mission to USA

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Quyen Tran

on 29 April 2014

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Transcript of Mission to USA

As there are minor differences in the National Cultures of United States and United Kingdom, there will not be major organizational culture changes that the company will have to undertake.
“…to bring together companies and community colleges around a simple idea: Making it easier for workers to gain new skills will make America more competitive in the global economy… by opening doors to new jobs for workers and helping employers find the trained people they need to compete against companies around the world”

The Manufacturing Institute (MI) introduced Manufacturing Skills Certification System, a robust training program that will give students at community colleges across the nation the opportunity to earn manufacturing certificates.
According to the White House, the manufacturing industry has pulled the national economy from last economy crisis by adding more than 230,000 jobs since the beginning of 2010
(Obama, 2010)
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• NATD (2011), “Upskilling the American Workforce”, [Online] Available at: http://www.natraining.com (last accessed: 20 March, 2014)
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• Walton, R. (1985) ‘From Control to Commitment in the Workplace’, Harvard Business Review, pp 77-84.
• Warner, M. and Joynt, P. (2002) Managing Across Cultures, Padstow: Thomson.
The UK astronauts
Gauri Bhole
Jieqiong Shan
Paula Montes
Quyen Tran
Vassia Kaparou

Key areas for success
National culture
National legislative frameworks
Trade unions and collective bargaining mechanisms
National training and development
Managerial initiatives
Importance of National Culture
Training and development practices in the US
Mission to USA
International HRM
Global Staffing group project
March 2014
What do you think?
Trade unions & collective bargaining
Key Characteristics
Hofstede's Model
CW Model
Culture Models
National training and development
1.ASTD (American Society for Training and Development, since 1944)
--world's largest professional association dedicated to the training and development field
It is a professional association of more than 70,000 workplace learning and performance professionals worldwide.
Its annual international conference and exhibition provides more than 15,000 attendees from around the world with leading-edge information on trends, innovations and new technologies.

Major US T & D Institutions
Adapted from the Windham International and ICAM models
Includes the work of world renowned thinkers, including Geert Hofstede, Fons Trompenaars and Edward T Hall
7 key characteristics and is an easy to-understand cultural template
Pragmatism - “how people in the past, as well as today, relate to the fact that so much of what happens around us cannot be explained”.

Pragmatic cultures don’t have a strong sense to explain everything that happens around them
Americans are normative as they score low on pragmatism
Are prone to analyze new information to check whether it is true
Many Americans have a strong sense of “good” or “evil”
should not be confused with the fact that Americans are very practical and have a ‘can do’ mentality as shown by the Masculinity index

However, as explained above these scores have to be taken into consideration with comparison and a score of 51 does not make the culture of UK to be Pragmatic, as compared to others it is on average and hence does not show any dominant feature.

Hofstede classifies culture in two categories:
National and Organizational Culture

National Culture
Hofstede’s dimensions: Power Distance(PDI), Individualism vs. Collectivism(IDV), Masculinity
vs. Femininity(MAS), Uncertainty Avoidance(UAI), Pragmatic vs. Normative(PRA), Indulgence vs. Restraint(IND)

The American Dream

The "American Dream" has become a widespread term to describe the American Way of Life
Hofstede's Definition
Culture is the collective programming of the mind distinguishing the members of one group or
category of people from others
Organizational Culture
Defined as "the collective programming of the mind that distinguishes the members of one organization from others"

National culture is one of the many factors shaping organizational culture next to such factors as personality of founder, feelings of insecurity, expectations of stakeholders and type of technology in use

Anti-unionism is profoundly intrinsic in the culture of American business.
Unions’ goals are primarily economic in nature, referring as ‘bread and butter unionism’
Employers’ organisations are not very active and never engage in all manifestations of employment relations
Management consultants and law firms that represent employers play important roles
US unions have relied upon collective bargaining as the main weapon
Most unions in the United States are aligned with one of two larger organizations: the American Federation of Labor - Congress of Industrial Organisations (AFL-CIO) created in 1955, and the Change to Win Federation which split from the AFL-CIO in 2005

National Union:
Maintain ultimate power over the important function of collective bargaining through their control of strike funds.
Establish and disestablish local unions.
Withdraw from the national federation if they wish
A crucial source of union ability to develop common rules and to strike effectively.
Do not want to cede power over the function of collective bargaining to the AFL-CIO.

Local Union: in charge of the routine work
Negotiate and bargain terms of new agreements and conduct strikes. (in some industries national unions do this)
Carry out strikes.
Administer agreement, performing the important function of enforcing the complex set or right that collective bargaining agreement creates.

Timeline of the American model of work & management history
US dominant
business models
Global Competitor Corporations

"Glamour" companies: IT, Telecommunication, Consumer products, Pharmaceutical companies
Skilled, full time employees
No job security, greater risk
Benefits, PRP systems
Search for talents

Workplace reform
New managerial initiatives in the
United States
Globalisation, rapid technological growth, new emerging markets, high competition, rise of service sector employment
Need for efficiency and employee commitment => Led US companies to rethink and redesign their model of work and management by developing new managerial practices:
Total Quality Management (TQM)
Introduction of Information Technology (IT)
High-Involvement Companies
Challenging and enriched jobs
Participation in the decision-making, communication
Commitment to low turnover and few layoffs
Flat organisational structure
Extensive training and development opportunities
Egalitarian workplaces
Team working
National legislative framework
6 key areas
US key managerial practices
Employment contracts
Employers within the UK can chose the legal system they wish to govern employment agreements. However, if no choice of law designation has been made in the employment agreement, the law of the country in which the employee is located will typically apply. Additionally, pursuant to the Employment Rights Act of 1996, all employees in the UK are entitled to receive, within 2 months of hire, a written statement from their employer setting forth the terms and conditions of the employment.
Written employment contracts with individuals are relatively rare except in the context of employment relationships with high level executive or key employees.

Contracts ‘at-will’: employer is free to terminate an employee at any time without notice and without case, so long as it is not for an unlawful reason. This is not interpreted uniformly in all 50 states.

Wage and hour
The National Minimum Wage Act of 1998 sets forth the minimum pay per hour almost all workers
The minimum wage rate varies per age group up to the age of 21.
For any employee over 21 years of age, the minimum wage rate is currently £6.19 an hour.
Adult employees may not be required to work in excess of 48 hours per week
Employers are not required to pay workers for overtime for hours worked in excess of that set forth in the employment contract but, the employees' average pay for the total hours worked may not fall below the national minimum wage.

The Fair Labor Standards Act of 1938 (“FLSA”) sets a minimum hourly wage rate
Youths under 20 years of age may be paid a minimum wage of not less than $4.25 an hour
The minimum wage rate currently stands at $7.25 per hour under federal law, although various states have higher minimum wage requirements) and a standard 40-hour work week.
Any time worked above 40 hours must be paid at a rate 1 1/2 times their standard hourly rate of pay.
Various states have more stringent requirements than set forth under the FLSA

Discrimination Law

US companies developed an overall philosophy of total quality in the 1970s, thus investing a lot in quality management.

TQM practices:

Employee empowerment:
delegation of authority to make right decisions
Employee involvement & participation:
a system wherein employees are encouraged to use their expertise and knowledge to suggest methods for improvements in their work areas, involvement in problem solving and decision making processes
- UK: Growth in participation & joint consultation
- Growth of EIP since the 1980s
Quality circles:
problem-solving through semi-autonomous work groups (team working)
looking for best practices & ideas, compare business performance
UK tendency during the 1980s to look at the United States as a management model of good practice
statistical processes and quality control methods to meet customer needs
Long-range outlook:
monitoring the external environment, proactiveness, prevention
job enrichment through the provision of feedback, efficiency, reduction of time to deliver high quality goods and services, continuous improvement
Customer focus
building a shared vision
Common areas
Gender reassignment
Marriage and civil partnership
Pregnancy and maternity
Race, ethnicity, national origin or skin colour
Religion or belief
Sexual orientation
Part-time work
Fixed-term work
Trade union membership activities
The primary legislation prohibiting discrimination and harassment in the UK is the Equality Act 2010.
Follows three major European Union Directives.
Other anti-discrimination legislation in the UK includes the Equal Pay Act of 1970, the Race Relations Act 1976, the Disability Discrimination Act of 1995 and the Employment Equality.

Federal law Title VII of the Civil Rights Act of 1964
The ADA prohibits discrimination based on a disability.
The Genetic Information Non-discrimination Act of 2008 (“GINA”), prohibits genetic information discrimination in employment.
The Civil Rights Act of 1991 establishes damage remedies under Title VII, the ADEA, and the ADA, and clarifies various issues under these laws.

Maternity and Paternity Leave

1990s: focus of re-engineering movement on reducing costs by eliminating unnecessary steps in work processes as well as layers of management => flat organisational structures

Re-engineering as a means for organisations to become ‘lean and mean’

Greater autonomy and accountability for employees => less need for supervision and greater value-added by employees


The need for reduced costs => downsizing
Large-scale layoffs – force reductions are becoming the norm
- US corporations announced more than 535,000 job cuts in the first half of 2005
- UK: Almost 2.7 million people have been made redundant since 2008, equivalent to one in ten employees at the start of the recession
Intensification of work => impact on engagement & commitment


US firms response to downsizing by investing more in training and self-management team working
Employees are entitled to 26 weeks of maternity leave which is referred to as "Ordinary Maternity Leave" and can receive either maternity allowance or statutory maternity pay.
Some employees are entitled to a longer period of leave, referred to as "Additional Maternity Leave" for another 26 weeks for a total of 52 weeks per year, if they satisfy certain qualifying conditions.
Revised Leave Directive, effective March 8, 2013, each parent is now also entitled to 18 weeks, instead of 13 weeks, of unpaid leave per child but limited to a maximum of 4 weeks per year.  Some employers offer longer or more flexible leaves but they must offer at least the minimum amount of leave under the law.

U.S. guarantee their Jobs 12 weeks after the arrival of a new baby, thanks to the Family Medical Leave Act of 1993, but they do not have to be paid during that time.
The United States is one of only four countries globally, and the only high-income country, without a statutory right to paid maternity leave for employees. In all but a few states, it is up to the employer to decide whether to provide paid leave.
However, three federal laws give workers important rights related to pregnancy, parenthood, and taking care of seriously ill family members.

Holiday entitlement
Working Time Regulations of 1998, almost all employees in the UK are legally entitled to 5.6 weeks paid holiday time per year.
Part-time workers are entitled to a pro-rata amount of holiday pay based upon the 5.6 weeks for full time employees.

There is no state or federal law in the U.S. requiring employers to grant employees paid vacation.
It is common to provide at least some vacation to employees, often about 2 weeks per year, increasing with seniority.

Employment contracts can be terminated for various reasons including expiration of the employment contract, termination by mutual agreement, death or retirement of the employee, dismissal of the employee, or due to a redundancy.
Both the employee and employer are normally entitled to a minimum period of notice of termination of the employment relationship as set forth in the employee's employment agreement.

Employees in general have relatively limited rights in the context of discipline and termination as a result of the legal concept known as the “at-will” employment rule. This rule of law provides that an employer in the United States is free to discipline and/or terminate an employee for any reason, without notice, and at any time, without any financial obligation whatsoever to the discharged worker.

(O’Toole and Lawler III, 2006)
(Walton, 1985)
(Warner and Joynt, 2002)
(O’Toole and Lawler III, 2006)
(Warner and Joynt, 2002)
(O’Toole and Lawler III, 2006)
Total Quality Management (TQM)
Information Technology (IT)
Positive developments:

Reduction of time needed to send and receive information (E-mail)
Exchange of information directly (EDI)
Productivity improvement
Job enrichment (through the provision of feedback about performance)
Elimination of boring and repetitive tasks
Enables decision-making (Software)
Enables employee training (Online courses)
Flexibility (Remote working)

* Microsoft: Allowing employees to blog and to bond with customers enriches their jobs to the benefit of both themselves and the corporation

Negative developments:

Machines have replaced workers => automation
Decrease of autonomy – Misuse by managers as a behaviour control tool (computer monitoring)
Creation of over controlled, routine and repetitive jobs => decrease of motivation

* Call centres as "Digital assembly lines": 4% of all US workers / scripted behaviour (McDonald’s business model)

(Warner and Joynt, 2002)
(Ritzer, 2004)
(O’Toole and Lawler III, 2006)
(Warner and Joynt, 2002)
(O’Toole and Lawler III, 2006)
(CIPD, 2012)
(Guest, 1990)
(Warner and Joynt, 2002)
(O’Toole and Lawler III, 2006)
Management in the UK & US
Despite its management’s quality improvements over the past ten years, UK still falls behind many key competitor nations in terms of leadership and management capability => impact on productivity and growth / productivity gap with US, Japan and Germany

- Relative low levels of training, concerns on relevance of training, shortages of key skills, failure to apply skills strategically

- The Government in England takes action to raise the quality of management and promote a stronger culture of ambition
(Department for Business Innovation & Skills, 2012)
Mission to USA: high probability of success, yet a challenging task
Similar cultural characteristics
Anglo-Saxon, liberal, market-oriented, deregulated markets
Michael Porter suggests that the UK is more Americanised than other EU economies
Almost the same legislation framework
Anti-unionism has been the preferred business strategy
Development of training & skills programs by the national government (such as the MSCS & the SDS)
Move from "control" to "commitment" strategy, use of managerial initiatives such as TQM, EIP & IT
The American culture!
Training and development is perceived as the most important HRM practice.
US companies nowadays require that employees are capable of not only technical service and product knowledge, but are equally capable of critical thinking skills, teams building skills, job rotation, and learning abilities on the job.
(Jennings, Cyr, & Moore 1995)
However, a 'training gap' appears to exist in the US (ASTD):
Most organisations train about 74% of their employees
Technical training accounts for around 29% of companies' expenditures
Quality, competition & business practices 5% and interpersonal communication 6% of training expenditures
In 1997 only 1% of employees was used in self-directed work teams
Training and development practices in the US
Training has become peripheral to organisations rather than integrated into organisations
(Zenger 1996)
The size of many training departments is shrinking while the use of training sources outside the organisation is increasing and as a result:
- training programs are developed that do not fit the organisation's training needs
- employees may perceive that training is neither valued nor effective
- Between 42% - 90% of the US workers need further training to become more competitive

et al.
2. NATD (North American Training and Development, since 1975)
--the home of internationally recognized training programs that lead to increased personal, team and leadership effectiveness
NATD has developed long-term relationships with its clients, such as Coca-Cola, Federal Express, Ford, IBM, and NASA
US investment in training
and development
The American Recovery and Reinvestment Act was introduced in 2009 with an investment of $787 billion, expecting to stimulate the economy and to create millions of jobs across the United States
It focuses on:
1.industrial: new technologies, infrastructure projects, and health care
2. help laid off workers get back to work
3. training and employment services

US organisations' investment in T & D
Case study

A case study of IBM

National human-resources service center (NHRSC)
Originally established as a benefits & training center, the NHRSC nowadays makes best use of technology, information and processes for its 400 staff to deliver 22 programs, from employee benefits to workforce diversity and from staffing to management development. The center serves a total IBM population of 625,000, including managers, employees, spouses, dependants and pensioners
It processes:
nearly 700,000 job applications
surveys the attitudes of 188,000 employees
receives more than 10,000 ideas for consideration
Customer satisfaction is around 90%
Successive annual cost reductions as new programs were added
A case study of IBM
NHRSC, which focuses on organizational T & D, has assisted employees’ career development and enabled HR experts to focus on strategic missions
Gap 2
Gap 1
Collective bargaining is increasingly moving from nation - or industry- wide level to workplace level
One study has found that in US wages are influenced by unions greater than in other developed countries
Wage determination, improvements in hours and work conditions have always been and still are the primary activities of American unions
In the United States, organizing involves both an adversarial campaign for the right to bargaining rights with a specific employer and a union membership campaign. Organizing typically means internal recruitment, as workers are already covered by a collective agreement.
Workers have to endure management-dominated representation elections and bargaining campaigns to gain bargaining coverage.

Collective Bargaining
(Sack, J., 2010)
(Harvey, S., 2003)
(Sack, J., 2010)
(Harvey, S., 2003)
Key Characteristics
(IWPR, 2013)
(Baker and McKenzie, 2011)
(Baker and McKenzie, 2011)
(Baker and McKenzie, 2011)
Join a traditional labor union,
Workers must be given voluntary recognition from their employer or
Majority of workers in a bargaining unit vote for union representation.
In either case, the government must then certify the newly formed union.
Private sector unions are regulated by the National Labor Relations Act (NLRA), passed in 1935 and amended since then. The law is overseen by the National Labor Relations Board (NLRB), an independent federal agency.
Public sector unions are regulated partly by federal and partly by state laws.
Public sector worker unions are governed by labor laws and labor boards in each of the 50 states.
Northern states typically model their laws and boards after the NLRA and the NLRB.
In other states, public workers have no right to establish a union as a legal entity

US Trade Unions Vs European Trade Unions
(Jensen, 2004)
Reference List
et al.
(Grosby, 1992)
et al.,
(Grosby, 1992)
(Bamber et al., 2011)
(Blanchflower and Freeman, 1992)

et al.,
(Hofstede, n.d.)
(Hofstede, n.d.)
(Anon, n.d.)
(Hostede, n.d.)
(Solomon and Schell, 2009)

(NATD ,2009)
(IBM, 2002)
Areas/gaps to be taken into consideration!
Culture only exists by comparison:

the country scores on the dimensions are relative, as we are all human and simultaneously we are all unique.
In other words, culture can be only used
meaningfully by comparison.

The American Dream
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