Moving Of Call Centres Commerce Essay Example

in gaining overseas work experience is due to the company's limited experience in appointing individuals for international roles. There are concerns about potential unsuccessful endeavors impacting career progression. Additionally, since there have been no previous expatriate arrangements, there is uncertainty about what directors might encounter upon their return to the UK. This creates worries among potential applicants who fear being forgotten and missing out on important promotional opportunities while away from the country.

Furthermore, the absence of a clear policy regarding salary and benefits for directors in India acts as a deterrent for potential applicants. The lack of attractive compensation makes these opportunities less motivating for them.

Moreover, four senior executives from LSR recently visited India for a month-long investigation into various UK companies' operations. Their findings have identified three recurring problems that need attention.The primary issue is the effective integration of Indian employees into teams working alongside their UK counterparts. The reasons for this difficulty are unknown but could be attributed to differing levels of seniority between the two groups. The managers from the UK attempted to enforce their usual procedures from LSR, leading to misunderstandings or conflicts. As a result, senior management in the UK now question whether relocating the call center was the right decision. Nevertheless, they have already issued redundancy notices to existing UK call center staff and are determined to proceed with their plans, despite realizing that more extensive research should have been conducted prior to initiating this project.

Cultural factors also play a role in motivations for entering the business sector, funding startups, and determining the type of businesses chosen. In East Africa, Asian entrepreneurs with a tradition of family business and

strong family bonds opt for self-employment due to these cultural traditions and heavily rely on family finances when starting up. They engage in either domestic or international trade.

Globally, advancements in information technologies and decreased transmission costs have contributed significantly to the growth of the call center industry.The past five years have seen impressive growth in call centres in India, accounting for 70% of the income of the Indian Business Process Outsourcing (BPO) industry. However, this rapid growth presents challenges in retaining skilled workers and directors who can provide excellent service. This report focuses on critical human resource issues related to these managerial challenges in call centres and provides benchmarking data for directors.

Max Weber famously highlighted at the beginning of this century that Protestantism encouraged a culture prioritizing individuality, achievement motivation, legitimization of entrepreneurial careers, reason, asceticism, and autonomy. Religion significantly impacts culture as it influences an individual's fundamental values and beliefs (Hofstede, 1991). However, culture is not solely determined by religion.

Indian English differs from American English, which poses challenges for British individuals to understand Indian dialects. Additionally, India displays various speech patterns and a unique side-to-side head gesture indicating understanding rather than disagreement. These cultural disparities between the UK and India affect call center operations as some customers prefer relatability and comprehensibility in their conversations. Consequently, call center agents struggle to establish an immediate connection with curious clients due to these dissimilarities.LSR insurance is the first company in India without a branch, which means there are no established policies for compensation and benefits for managers stationed there. However, working with Indian teams has been challenging for managers who are used to UK procedures that Indians

struggle to adapt to. Myers and Tan (2002) found that many IS researchers rely heavily on "national culture" models, resulting in narrow perspectives on the impact of national culture. In the past, some IS researchers accepted national culture without critically examining it. Critics of Hofstede and others express concerns about how national culture is conceptualized in theoretical models and argue for more comprehensive perspectives on cross-cultural diversity in global organization management. This study aims to contribute to this field by following suggestions from Myers and Tan (2002) and Gallivan and Srite (2005). Our cultural model provides a detailed framework for analyzing the impact of cross-cultural differences in global work. Huang et al.(2003) emphasize the importance of corporate culture and subcultures in global work, highlighting the need for deeper understanding.Despite the extensive literature on corporate culture and IT adoption in organizations, there has been limited integration of these findings into practical global work research. In the IS literature, there is a lack of research on workplace culture in understanding global work. The validation of contextual variables identified in one multinational company's survey needs to be replicated in other settings. As globalization increases and companies expand beyond domestic boundaries, the use of expatriates has also grown. To remain competitive globally, companies have had to reconsider how they transfer knowledge, such as cultural values and management practices, to foreign locations. Thus, employing expatriates during the startup phase can facilitate this knowledge transfer across borders. However, developing a fair and equitable policy for expatriate compensation is challenging. It is crucial to decide on the appropriate compensation approach for international assignments when establishing expatriate policies. While using expatriates on international

assignments offers benefits like career development opportunities and gaining a better understanding of local market conditions for the parent company, relying solely on them may not be effective long-term. Instead, they should empower local managers while maximizing utilization of these valuable staff members.
The failure of expatriate assignments is often attributed to two main factors: the partner's inability to adjust to a different physical or cultural environment and family-related issues. Despite the growing recognition of the impact of family on international assignments in both organizations and literature, little action is being taken to address this issue. A study by Black and Stephens (1989) found that only 30% of organizations surveyed sought the partner's opinion regarding an international assignment, which can contribute to deportation success. Compensation and benefits are also significant expenses associated with expatriate assignments. Typically, expatriates receive three times their salary from their home country. Companies have been innovative in providing various benefits such as tax equalization, motor vehicles, cost of living allowances (COLA), housing accommodations, school fees, variable wage components, stock options, and a competitive base salary to support expatriates in their new location. Considering these factors - selection, preparation, and compensation - careful consideration should be given when utilizing these costly staff members. The implementation of expatriate programs should include a strategy for empowering local management, which can help reduce long-term costs. Employers require expatriate hires to have company knowledge, industry expertise, and relevant work experience.The organization values leadership, decision-making skills, effective communication, relationship building abilities, coaching and mentoring capabilities. Expatriates must have cultural affinity and adaptability without compromising ethics and morals. International benefits and compensation pose challenges due to varying salary levels

in different countries. Developing compensation systems for expatriate managers is more complex and expensive compared to HCN managers. These pay systems must comply with local laws and customs while aligning with global MNC policies. Ensuring equal pay for equal work is crucial regardless of the host country's compensation environment. To retain expatriates, their unique circumstances should be considered when making decisions. Offering attractive international benefits would benefit both the expatriates and align with their situation. Expatriates play a crucial role in maintaining effective management within the company. Various costs such as COLA, lodging allowance, resettlement allowance, instruction allowance, place leave allowance, and adversity allowance should be taken into account by those living abroad. While most call centre directors agree with this notion, justifying investment in a cost center can be challenging. The TARP (1997) survey attempts to quantify the advantages of delivering efficient service while considering costs involved.Differences in culture and beliefs can lead to team-related issues within call centers. The main challenge lies in compensation. The Traveling Rate Approach, also known as the Market Rate Approach, addresses this issue by using market rates and simplification to provide equity with local subjects. It also promotes identification with the host country and fairness among individuals from different nationalities. However, there are drawbacks such as variation between assignments for the same employee and between exiles of the same nationality in different countries, along with potential re-entry problems.

Another approach to consider is the Balance Sheet Approach, also known as the Build-up Approach. This approach focuses on ensuring expatriates' well-being by maintaining their home-country wage and benefits while offering financial incentives to make their package appealing. It involves adjusting

the compensation package to cover additional expenses in the host country through fiscal incentives like expatriate or hardship premiums.

The Home-Country Approach is commonly used by multinational companies. It offers advantages such as fairness and consistency in benefits between assignments and expatriates of the same nationality. It also facilitates re-entry and enables easy communication with employees. However, there are disadvantages associated with this approach as well.
Differences between expatriates of different nationalities and local residents may lead to potential disparities. This can result in complex administration and difficulties in attracting human capital. To tackle these challenges, there are two main options for international compensation: the Home-Country Approach and the Going Rate Approach. Each option has its own advantages and disadvantages. The Going Rate Approach might be a preferable choice as it allows for a basic wage and benefits that can be supplemented with additional payments specifically designed for low-pay countries.

Call centers present their own set of unique challenges, especially when they are located outside of the home country. Callers might feel uneasy speaking to individuals who are unfamiliar with their culture or background. However, studies have shown that proper training can significantly enhance call center operations across various countries. Initially, call center employees may struggle to adapt but receiving appropriate training would greatly benefit both parties involved.

The presence of a UK manager at the call center is advantageous due to their familiarity with the operations. Their knowledge enables them to effectively handle customer inquiries and fulfill their needs. Additionally, having a UK manager ensures that staff members are properly trained on products and capable of providing appropriate assistance to customers.The UK staff member can personally handle the

needs of customers who prefer interacting with someone they can relate to. The UK managers play a crucial role in mentoring team members and developing them into future leaders. The UK call centre can easily provide training on company policies, cultural differences, and other factors affecting customer service to Indian staff. It is recommended that this training be conducted by UK personnel, even if only one Indian staff member is trained initially to subsequently train others. To ensure successful preparation, it is important to align international compensation with the multinational's overall scheme, structure, and business requirements. This includes attracting and retaining staff in countries with high demand and opportunities for the multinational. Competitive compensation should be offered considering incentives for foreign service, tax equalization, and reimbursement of reasonable costs. The company also aims to ensure cost-effective transportation for its international employees while valuing fairness and ease of administration in this process.