Global Staffing

Introduction


New Island Clothing is a company in Trinidad and Tobago that provides fashion merchandise to stores owned and operated by local operators. As the success of the company continues New Island Clothing is seeking a more consistent distribution channel than the current insecurely run system of stores. The direction in which the company is moving towards is becoming more structured, streamline processes, begin creating a uniform storefront, and transition into a brand name chain of stores. Eventually New Island Clothing plans to extend its global expansion strategy to other Caribbean countries. As the Director of human resources for the company, a new comprehensive staffing strategy has been requested. As director the strategy developed needs to exceed standards set forth by any strategic audit of the human resources systems within each of the local stores. Also included within this strategy will be the human resources challenges that the company will encounter as a result of the acquisitions. Taking into consideration the unique cultural and regulatory factors and the impact the factors will have on organizational effectiveness. Since the company is acquiring new stores, the recruitment and selection practices must evaluate the skills, abilities, and knowledge of all employees. The training and development processes will be the essential function that New Island Clothing will use to bring the company to the next level. To achieve the new strategy and the potential outcomes the audit will characterize the type of changes in the current store structures that need to be made.

Overview of the Country

Trinidad and Tobago or the Republic of Trinidad and Tobago is located in the 
Caribbean. The Republic of Trinidad and Tobago is often referred to as Trinbago, which is a one-word representation of the two islands. It is a mountainous country that is a little smaller than the state of Delaware. Visitors to Trinidad and Tobago can expect to experience a tropical climate characterized by a dry season over the months spanning between January and May; then followed by a rainy season, spanning over the months of June to December.

Human Resources Challenges/Cultural and Regulatory Factors

One of the HR challenges that may arise as a result of this acquisition is formulating policies that are relevant and effective for company staff across the board, since "the proper mix of practices depends on how work processes are organized and on the unique environmental circumstances surrounding a given firm," (Dreher & Dougherty, 2001). The second challenge is staffing the company with people who can share or adopt the prevailing organizational culture while retaining the uniqueness of Trinidad and Tobago cultural norms. The third challenge would be finding ways of creating an reasonable reward culture in a country where there is a large discrepancy between male and female pay structures, with men being paid significantly more to do the same job as their female equivalents. The difference in pay scales between the United States and Trinbago will also have to be addressed if employees from both countries are expected to work together.

In terms of regulatory obstructions, it is important to consider that if a foreign investor intends to operate a publicly held company and expects to purchase more than 30% of its capital shares or purchases five acres of land for trade purposes, the government requires licensure be obtained under the Foreign Investment Act. On the other hand, if an individual intends to operate a private business, that individual or entity is permitted to own one hundred percent of his or her shares upon notification of the Minister of Finance. There are additional risks associated with the perception that the government is slowed down in bureaucracy and parliamentary procedures as opposed to being actively engaged in addressing socio-economic issues. There also appears to be a divide between government officiating and the belief that government officials are there to serve the public. An example of this low level of protection and liaise faire behavior resides in the bureaucratic inefficiency associated with clearing customs; obtaining licensure; qualifying for incentives; and being reviewed for environmental impacts. (Industry and International Business, 2008)

The HR department has many responsibilities, some of which are: hiring, reviewing, firing, training, career development, policy development and maintenance, performance reviews, salary actions, and employee relations. A well-organized human resource department is crucial to a company's success. The business world has begun to recognize that employees are a company's greatest assets. Therefore, businesses are beginning to rely upon more effective management policies. A business of any size must have good employees. However, one of the most important benefits for any business leader is for his or her employees to be properly managed. Human resource departments are aware that companies require strong leaders in order to 
thrive in the global marketplace, especially when it comes to effectively managing people from different cultures and environments. The world markets have changed enormously over the past few years. A new way of thinking and approach to doing business is necessary in order to survive in the fast-changing world economy.

Non-discriminatory work environments are achieved and maintained through written 
policy, effective communication, employee development, training, and enforcement of law through competent management and supervisory staff. Leaders are expected to follow the non-discriminatory practices that are outlined in the company's employee handbook. It is the responsibility of the human resource department to ensure the employee handbook represents company policy as it applies to the cultural norms of the country, which the company is conducting business, (Lewis, S., 2008). The company should expect that leaders consistently assess business situations objectively and make decisions in the best interest of the company and the company's constituents. If employees in leadership roles neglect to use prudent decision-making, they risk: placing the company and/or themselves in jeopardy of lawsuits; loss of contracts or market share; loss of the right to conduct business in a country; and/or ultimately the loss of profits. In addition to written policy and training, the company should gird itself with HR specialists and legal counsel knowledgeable of each country's culture specifically for those occasions when errors in judgment take place, (Lewis, S., 2008). 


Exchange and Repatriation of Funds Risks


As of 1993, there are no