Implication of International HR Strategies in Case of BA

Implication of international HR Strategies in Case of BA
Implication of international HR
strategies in case of BA
Table of Contents
Summary....................................................................................................................... 4
Introduction.................................................................................................................... 5
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Task 1 Introduction to HR issues....................................................................................... 5
1.1 Human Resources Issues............................................................................................ 5
Individual development:-............................................................................................. 5
Desirable working relationship between employer and employee:...........................................6
Effective molding of human resources as contrasted with physical resources:-...........................6
1.2 Cultural and Social Challenge..................................................................................... 7
1.3 Advantages & disadvantages of Hiring Local Manager.......................................................7
Advantages:................................................................................................................ 7
Dis-advantages:............................................................................................................ 8
1.4 Advantages and Disadvantages of Hiring expatriate manager...............................................8
1.5 International compensation......................................................................................... 9
1.6 International performance appraisals............................................................................. 9
1.7 Expatriate of HR in Sri-Lanka................................................................................... 10
Task 2- legal issues of Sir-Lanka........................................................................................ 10
2.1 Law and contracts.................................................................................................. 10
2.2 Foreign Investment Laws......................................................................................... 11
2.3 Holiday & Sick Leave............................................................................................. 11
2.4 Rule of Law.......................................................................................................... 11
2.5 Security............................................................................................................... 12
2.6 Property Law & Transfer Policy.................................................................................12
2.7 Intellectual property rights........................................................................................ 12
2.8 Tax system........................................................................................................... 13
2.9 Contract laws........................................................................................................ 13
2.10 Employment law of Sir-Lanka................................................................................. 13
Task 3 - Political risk...................................................................................................... 14
3.1 Government stability............................................................................................... 14
3.2 Type of government................................................................................................ 14
3.3 Corruption........................................................................................................... 14
3.4 Border disputes..................................................................................................... 15
3.5 Incidences of strikes............................................................................................... 15
3.6 Attitudes of government officials................................................................................15
3.7 Trade policies....................................................................................................... 15
3.8 Government focus.................................................................................................. 16
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3.9 Legal systems....................................................................................................... 16
3.10 Comparisons of other power distance countries with Sir-Lanka.........................................16
Task 4 Globalization..................................................................................................... 17
4.1 Essential for going global......................................................................................... 17
4.2 Market Growth...................................................................................................... 17
4.3 Core Competences................................................................................................. 17
4.4 Economy of Scale.................................................................................................. 18
4.4 Challenges faced in global markets.............................................................................18
Conclusion................................................................................................................... 19
Reference.................................................................................................................... 20
Summary
With the moving time many countries are going global for building their operation more cheap
and effective in terms of quality and standardization. There is always the gap found out in two
different cultural companies, as this can be seen in regularly functioning, their language, their
working attitudes and cultural style etc. There are no of companies, who went internationally and
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had implemented the diversified work force in their business; such companies are view in list of
most successful companies. With the coming change in economy one can understand that
international HR strategies are much important in today world to deal with successful project
execution in the market. The report will put light on the two cultural management style, the
political issues faced in project execution countries, the laws and regulation seen at Sri-Lanka
and globalization effects . There are many research done as this research suggest the in UK what
things are effective for business many not be effective in Sri Lanka.
The legal system of Sri-Lanka is democratic, as it much close to system used in India and other
countries (Svendsen and Bunik, 2010). The author examined that in terms of international and
national laws the Sri-Lanka will be facing the difficulty in deal with classic concept like monism
and dualism (Zimnenko, 2007)(there is no research done later on with same subject matter)
In this report, area of study the political environment of Sri Lanka will be examined that if the
BA will implement their unit in this location, does the factors like government, strike issues,
attitude of government officials, the fiscal policy and monetary policy of country, government
focus area etc.
There are many challenges faced by companies in order to set their unit in other country. Apart
the form that the labor is again a big issue, as to hire good manager for project and their
difference in cultural will change the code of conduct of BA. There are more than 100 of British
companies working and function in Sri-Lanka such as, M&S, Tesco, and The body shop,
Debenhams, GSK and Shell etc. (Brooking, 2013) in 2014 the raking of top economic of trades
companies, the Sri-Lankan was on 56 positions out of 189 countries in whole economy (Ease
doing business, 2013).
Introduction
With the moving time many countries are going global for building their operation more cheap
and effective in terms of quality and standardization. This report will highlight such a case of BA
who is looking forward to introduce their operating unit in Sir-Lanka, as being UK based
company. The BA authorities will look on the necessary areas such as management style
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comparison between UK and Sri-Lanka, legal issues that BA faces at initial stages in Sri-Lanka,
political issues, and globalization drawbacks etc.
There is always the gap found out in two different cultural companies, as this can be seen in
regularly functioning, their language, their working attitudes and cultural style etc. There are no
of companies, who went internationally and had implemented the diversified work force in their
business; such companies are view in list of most successful companies. With the coming change
in economy one can understand that international HR strategies are much important in today
world to deal with successful project execution in the market. The report will put light on the
two cultural management style, the political issues faced in project execution countries, the laws
and regulation seen at Sri-Lanka and globalization effects . There are many research done as this
research suggest the in UK what things are effective for business many not be effective in Sri
Lanka.
The report is not discussing the HR context in terms of locally, regionally and globally but it also
examined the culturally and legally and politically. The human recourse had to face various
challenges and get opportunity while expanding in Sri-Lanka.
Task 1 Introduction to HR issues

1.1 Human Resources Issues
The main Human resources issues faced in Sri- Lanka are:
Individual development:The employer should always be careful in developing the personality of each individual. They
should be regarded as co-owners or partners of the organization and given a due importance in
the organization. Each individual differs in nature and management should recognize their
individual ability and make use of such ability in an effective manner
Desirable working relationship between employer and employee:
So that they may co-operate the management and it is possible when there is complete mental
revolution. The personnel administrator should get it realized to the top management that labor is
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human being and humanly treatment should be given on the other hand management should get
it realized to workers that they co-operate the management in accomplishing the goals of the
management.
Effective molding of human resources as contrasted with physical resources:Man is the only active factor of Production which engages the other factors of Production to
work. Therefore, management should emphasize the effective utilization of human resources as
contrasted with other physical resources so that maximum production at minimum cost is
possible.
Other sub-ordinate issues are:
Selection of right type and number of persons.
Proper orientation and introduction of new employees to the organization to their jobs.
Organization of suitable training facilities for better job performance & to prepare the
man to accept the challenge of higher job.
Provision of better working conditions & other etc. so as to help to hold competent and
qualifier personnel in the organization.
Provision of sound, fair and effective wages and salary administration and other
incentives which will result in highest possible productivity of workers.
A full & fair consideration should be given to an employee when his services are
terminated or he leaves the organization.
Good relations should be maintained with representative trade unions.
Personnel research which keeps the management equipped with recent development and
trends essential to take sound decisions without any further delay as regards personnel
matters.
1.2 Cultural and Social Challenge

The English people have forward nature while the people of Sri-Lanka are much closed, ethical,
and cultural. It is understand one should learn new language in order to understand their cultural
this nature and ethics (Chris, 2013). This begets a situation that if UK companies want to venture
in SL, they must establish good bond and even think of bossing over their colleagues, as in
their home country. The UK managers are suggested to behave as fatherly figures. It is preferred
that the old and aged persons should be the supervisors in Sri-Lanka so that it can handle
situation better. The productive relation can only be maintained (between SL Managers and UK
managers) if both of them co-adopt each others sentiments and cultures. If needed, trial and
error method can also be resorted to (Anon, 2011).
1.3 Advantages & disadvantages of Hiring Local Manager

Most companies prefer to adapt ethnocentric approach in the short-term as it will give them a
chance to develop the companys staff at all levels of the organization (The Economist, 2010).
All our managers who are currently working for us have the experience of working in the
company and this will help in starting the business effectively in Sri-Lanka. Once the company
has established itself then it wouldnt be a bad option to recruit Sri- Lanka and start training
them. This will reduce the need of expatriate managers in future which I have discussed earlier is
a big issue for the companies. The policy should be based on long-term careers concept and
strong possibilities of change and development within the company.
Advantages:
-
Low Cost
Easy communication, as language is same of top level and bottom level
No cross cultural training
Dis-advantages:
-
Lack of diversified knowledge

Expertise lacking in functioning
The standard and code of conduct is maintained according to Host country

1.4 Advantages and Disadvantages of Hiring expatriate manager
The financial costs which are incurred by parent companies are extremely high and in order to
make sure that Times Groves expatriate managers meet with success, these factors which result
in failure will have to be kept in mind (Ball, 2013). Companies have reservations about host
country nationals as managers because of factors such as miscommunication between home
country and host country offices, inadequate experience of host country nationals, concern about
whether host country nationals can comply with company rules which oppose there cultural
context. These problems can be avoided by careful recruitment and selection in the host country.
Further, using host country nationals can help TG avoid bureaucratic red tape as the government
is more likely to look favorably upon companies which employ nationals to high managerial
positions (Ivancevich, 2008). The cost of hiring managers from United Kingdom or any other
country apart from Sri-Lanka will be significantly high as there are more elements added to their
package and the benefits offered to expatriates generally go beyond the benefits offered to other
employees.
Advantages:
-
Improved productivity and quality in functioning

Standard of working is maintained
Globalized and diversified work force
Disadvantages:
-
Cross-cultural training- This will enable managers to learn by understanding better what
will be important to them in their allotted destination.

Career counseling- By guiding them throughout their assignment so that they dont go off
the track in frustration. This is also sometimes called on-the-job training
Miscommunication- the language of both countries are different so there is some chances
of lack of understand the problems and issues of bottom level workers.
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-
Cultural shock cycle

Wrong selection of candidates
1.5 International compensation

The international compensation should considered all of the above points in the mind, which are
included in the pay
Basic salary plus performance related pay

Allowances such as travel allowances and daily allowances
Medical facilities
Accommodation (Rent)
Family benefits such as finding adequate schooling for their children, paying school fees
for their children (Depending on the company policy e.g. fees for children under 18 only)
and also helping the spouse obtain a work visa and a job.
To show concern for the manager benefits in the areas of taxation, visa and immigration
should also be offered.
1.6 International performance appraisals

There should be various performance appraisals techniques mentions for international level but it
is needed to clearly understand on the basis factors the technique are selected. The 360 degree of
performance appraisal technique should be selected because this is methods which are selected
by 80% of global companies who had their units kept in different parts of world.
1.7 Expatriate of HR in Sri-Lanka

The HR of BA is not going to considered only the Sir-Lanka employee as they have to manage
their unit more in UK based and Italy based. The head of HR and top level executive will be
British employee, apart the middle level manager are Sri-Lankan because they are cheap and
talented. The communication between the British employee and Sri-Lankan will be done easily
because one who will be only hired who has the fluency in English, and ability to compete the
given course of action.

Task 2- legal issues of Sir-Lanka
The legal system of Sri-Lanka is democratic, as it much close to system used in India and other
countries (Svendsen and Bunik, 2010). The author examined that in terms of international and
national laws the Sri-Lanka will be facing the difficulty in deal with classic concept like monism
and dualism (Zimnenko, 2007). There are many top personality leaving in Sri-Lanka as it is
democratic country so if all the people are following the legal systems and laws are considered to
much helpful. Organised crime and organised chaos are associated with the Sri-Lanka legal
system (Danilenko and Stein, 1997; Wortman, 2011)(the first research done by author in 1997
than other author update it in 2011) which are primarily attributed to corruption and the
political influence on judiciary, as discussed below.
2.1 Law and contracts

There are lot of improvement seen in the laws as the new government can in ruling, but still
these laws are mostly found in the paper due to corruption the business had not examined any
clear increase in the willingness of settling their disputes in courts or law offices due to lack of
fariness and trust in judiciary. The local companies had high power as their position are more
influential and it makes essential for business to develop the congenial relationship with social
contacts (Fey and Shekshnia, 2008). Seeing the example of M&S the opening day of M&S the
top management had to faces the many issues regarding the store closer many deals not sign,
transport issues and other so it really recommendable to look towards the whole process were
accurate and clear then move further in building plant implementation (Fey and Shekshnia,
2008).
2.2 Foreign Investment Laws

There are many researches done in not a single research it was seen that local companies was
shown more benefits in regards to maintain their cost, tax and circumventing laws, and getting
special deals from government on various levels. (Fey and Shekshnia, 2008). The was other
research that draws on attention on that, like a powerful business have more better performance
than an average organization has in the market. The business with low political power will affect
their business at every stage and lose good connections for being more powerful business in the
regulatory capture.
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2.3 Holiday & Sick Leave
The research shows that labor code had declare that every employee are entitle for the 12 public
holidays and 28 working days or more according to company employment policy the annual
leave. The standard working hours should not be more than 40 hours per week (KPMG, 2012).
Once the employee is complete its three month of trial period he is entitle to receive some social
benefits and compensation as well as overtime payments. The labor laws even says that
maternity leave must be 5 month in time pregnancy and after the child birth which increases for
multiples birth (KPMG, 2012).
2.4 Rule of Law

The Sri-Lanka economy had put continuous effort for enhancing their regulatory framework and
shows the degree of resilience in todays challenging business environment. The policy are
develop in such a improve manner that it will stream line the market and support the open market
by favoring the new investors to invest their money in Sri-Lanka by venturing with local
companies.
There are some prices which is regulated by the government, and there are much if restriction
kept will starting the business. The study by (Anonymus, 2006) (after 2006 there is no is no
change seeing in law of license) says that licenses should be needed to start the business in
country by foreigner and even some product are to issue from the legal department of country.
2.5 Security
The study conduct on Sri-Lanka business it is suggested that there is improvement seen in the
Sri-Lanka and their function but still it is less safe, and overall security in Sri-Lanka is been
viewed as bit confused because of weak system, organized crime, and corruption (Svendsen and
Bunik, 2010). There is lack of reliability in the policies are faced by the foreign business, the
civil servants accept and expect bribe.
The management of security in UK and Sri-Lanka both should be responsible for the maintaining
security, supplemented by security at various areas and departments of business unit. The new
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management in Sri-Lanka should be implemented as similar design of UK and assistant
managers of both location should assist in it (Iivari, 2008; ACFE, 2011).
2.6 Property Law & Transfer Policy

There are major threats in Sri-Lanka faced by business houses that is corruption and fraud in the
business. The other minor threats are unfair competition, information of security, unfair activities
in middle level of management and unethical regulatory bodies working in the government or
market of Sri-Lanka (ACFE, 2011). The corruption and fraud can be present anywhere in the
business department or it can be presented in the functioning of business as such HR safety,
business partners are fraud, unethical property, risk related to taxation, unethical policy of
accounting the copy right violations etc (ACFE, 2011; Wortman, 2011).
For example, In Moscow and St. Petersburg, which are comparatively safer than other regions,
businesses may be obligated to pay a percentage of their income to a roof to help gain
protection for ones business from the organized criminals. Property rights are still not secure in
Russia; businesses can be exposed to arbitrary executive power (Zimnenko, 2007; Svendsen
and Bunik, 2010). The infrastructure risk can vary widely across the regions. Companies in
Moscow, St Petersburg and other urban centres have better access to transport and telecoms
facilities than those operating in the distant regions (Thorniley, 2007; Domsch and Lidokhover,
2007; Wortman, 2011).
2.7 Intellectual property rights

There is strong law made on the IPRs (intellectual property rights). The new release of Sri-Lanka
had suggested that property can be certified in the name of company as their brand name, land,
trademark and service marks, creative work, software and databases; the industrial design or the
models of valuable as assets etc (Commerce, 2013). There is special court for IPRs in Sri-Lanka
as were all the work and purpose of IPRs and security of business in terms of IPRs is fulfilled.
The breach of contract in the protected asset can bring legal prosecution in between, so however
not satisfied either of fair opponent in the Sri-Lankan jurisdiction (Kim, 2013). There are many
illegal person attached to property as this is increasing the threats in IPRs, the mafia system and
organized crime is very much influence for huge payment of money, so it necessary for the
business to keep IPRs safe and secure.
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2.8 Tax system
The tax system in Sri- Lanka is not much complicated as, the taxation policy is well understand
to company by legal representative of government officials. The tax accounting policy will not
differ in the continuous financial change but the changes will be only shown in legislative policy
only (KPMG, 2012). The foreign company working in Sri-Lanka and their employee income will
not considered in Sri-Lanka but in the head offices, as any Sri-Lankan working in foreign
country or foreign working in Sri Lanka will get full tax exemption according to Sri- Lankan tax
law (KPMG, 2013). The tax system in Sri-Lanka is not that much sustainable as UK, the UK tax
policies were fair and transparent in case of Sri-Lanka many companies they dont pay exact tax
as in one of the research it is known that 80% of the firms are found where there is no regularity
shown in paying Tax. The bribery and corruption are more happening in the Sri-Lanka so the Tax
matter is affecting a lot (OSAC,2013).
2.9 Contract laws

There are hundreds of business houses they often registered business with the same address, so
the tax defaulter address is not chase able, it is really difficult to find out the culprit and defender
(Ledeneva, 2009). In some of places in Sri-Lanka still the barter system exist so that taxes can be
evade according to that system. However although the shadow scheme operating in Sri-Lanka do
not disregard the law is used manipulatively; there are shell firms scam firms, money firms and
firm on the side that can be used backdating, empty receipts, mis reporting amounts and
backing up false documents.
2.10 Employment law of Sir-Lanka

The HR of BA has to look towards the employment laws of Sri-Lanka as they will have to hire
some of the local candidates who are aware of the local markets and the operation of new step at
new place with local employee can go smoothly. The laws of each country are different, as
constitution laid by Sri-Lanka will have employment laws mention in it.
Task 3 - Political risk

In this area of study the political environment of Sri Lanka will be examined that if the BA will
implemented their unit in this location, does the factors like government, strike issues, attitude
of government officials, the fiscal policy and monetary policy of country, government focus area
etc.
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3.1 Government stability
It is very important to know whether the government of Sri-Lanka is secure, reliable and flexible
and liberal in terms of making business globally. The press release suggest that current leader of
Sri-Lanka Juan Manuel Santos is more forward in development, open government, less
restriction, and bring in trade regimes. The researches that this government will be elected for
next 5 years again as there are lot of development seen in countries and companies when they
had implanted their ventures with the Sri-Lankan companies (Financial times, 2012). The views
of Department of States, 2012 suggested that government prior to this government was much
widespread with violent conflicts and other issues but new leadership had change many things
and vast improvement is visualized by people.
3.2 Type of government

The research result by (CIA, 2012) examined that Sri-Lanka is democratic country so if any
election are done to people will choose their leader. The leader will develop the government
would considered the public policy, laws and action of their state instead of local people.
3.3 Corruption
There is huge corruption seeing in the Sri-Lanka as if we compared the UK and Sri-Lanka on the
global corruption index then UK ranked on 17th position but the Sri-Lanka is on 9 th position
(International, 2013). The Sri-Lanka have many civil servants and public officials corrupted as
in first case and secondly their policy will are ruling in the country is also corrupted (Wortman,
2011; Fey and Shekshnia, 2008). There are many death issues faced in countries when the
reporters and journalists who try to address those corruption issues in the country. There are anticorruption council but still despite of that the death cases and killing cases are exposed in the SriLanka. There was research conducted by the which exposed that in year 1995 there are around
270 illegal cases of commercial activity were exposed; in the customer services more than 40%
of crime is committed through acceptances of bribery. There are many competition having in
Sri-Lanka in Bribery cases and this advantages are taken by civil servants or public officals
(Levin and Satarov, 2000).
3.4 Border disputes

Due to the importance of blat and personal networks in national Sri-Lanka culture, the relatives
of high ranking officials from legal and political bodies get ahead (Levin and Satarov, 2000)
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there is no updated research obtain after this research . The competition is essentially based on
rents around 10 percent of the revenue in small and medium sized enterprises is taken by
corruption, and the expenses can be higher in the early stages of registration of the business; in
some branches of manufacturing businesses, around 50 percent of the actual revenues can be
accumulated in multi-level bribes.
3.5 Incidences of strikes

The strike are issues not often seen in Sri-Lanka as the last strike was done by transport company
in year 2011 when the charges of freight and cargo were often changing with change in price of
petrol. The research conduct by (global voices, 2011) executes that Strike happen because of
some political or economic issues, and it aims to bring the improvement in system of country.
3.6 Attitudes of government officials

There is much improvement shown in Sri-Lanka because of business environment but still the
country suffers from the corruption issues (Marcelo, 2013). There are agents found in the
leadership team which are wrongly using their responsibility and taking their own benefits in
case of Bribery money from any work which is at initial stage.
3.7 Trade policies

The trade policies developed by the country were sound economical and much aggressive in
terms of promotion for the free trade agents. There was agreement sign by the UK government
and Sri-Lanka government that is the agreement of promotion and reciprocal protection of
investment (BIT) between Columbia and UK was approved. This agreement will help the
countries to fair and transparent trade between each other. The no obligation and no issues will
be help as one of the policies mention in the agreement was that it should give equal and fair
importance to foreign companies or people as their national companies or people. All the rules
were bid by the laws, and high inspection on the agreement was done so that countries can better
trade with each and other by benefiting on both end (embassy of Columbia to the united
kingdom, 2012).
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3.8 Government focus
The research done by heritage foundation, 2012 had said that Sri-Lanka is growing well by
building the new horizons. There are much investment done in the research, technology,
communication, transport, technological skills and infrastructure of the Sri-Lanka (Columbia).
3.9 Legal systems

The effective rules of laws are been developed by the Sri-Lanka as if one can contrast it with
other country. One of the research examined that corruption present in the country is still
hazardous as the judicial system is consistent exposed to political interface (heritage
foundation, 2012). The country main official had to face huge threats and violence when the
countrys judicial system is changing a bit with time to grow.
3.10 Comparisons of other power distance countries with Sir-Lanka

The biggest risk with Sri-Lanka is in case of expropriation which generally means take the
private property for public use in order to benefit the public. There are many researches done
their research and study the cases of such issues happening the world, generally such cases are
found in Argentina as huge MNC name YPF had been taken over the government, as 51% of
stake had been taken by the government. This is because the company was investing the assets
which are holding the negative effect over other and the business environment was damage so
that Argentina government announces to take the stake of this company and plans out better
places for public for benefiting them. There are such polices seen in Spain and other some
countries where the property if misused or got the negative express will be taken by the
government and use for some other public used purposes (Financial times, 2012).
Task 4 Globalization
The globalization is much importance these days, as no companies can work in single unit they
have to use resources from other location for optimal output and make their products up to
quality. The diversified workforce is almost important concept in the international HR
department. There are many challenges faced by companies in order to set their unit in other
country. Apart the form that the labor is again a big issue, as to hire good manager for project and
their difference in cultural will change the code of conduct of BA.
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4.1 Essential for going global
The project cost of BA is much higher if the plant is implemented in Italy or UK. The
implementation of project in Sri-Lanka will be more effective because the cost of project will be
cut 20% to cost that was incurring high in other countries. The globalization concepts are
booming, and seeing the Sri-Lanka there are many of the gates open for trades and bring the
business in Sri-Lanka and making the profitable for the country as well the companies. There are
many research done in UK seeing that whether companies going in global market are successful
so the result is yes, as much companies had done integration with Asian countries they are high
successful in it (Gluschenko, 2009).
4.2 Market Growth

The research says that British company are better performing in Sri-Lanka as it offer the better
GDP rates to company and country both (BBC, 2009). The Sri-Lanka is 4th largest market in
Asian countries with high no of people literate and high natural resources available in land of
Sri-Lanka, the GDP and GNP of economy is well maintained their policy are liberal (Thorniley,
2013). Looking towards the world top investment report in that Sri-Lanka is on 18 th position in
the world Host economies (united nation, 2013).
4.3 Core Competences

There are more than 100 of British companies working and function in Sri-Lanka such as, M&S,
Tesco, and The body shop, Debenhams, GSK and Shell etc. (Brooking, 2013) in 2014 the raking
of top economic of trades companies, the Sri-Lankan was on 56 positions out of 189 countries in
whole economy (Ease doing business, 2013).
4.4 Economy of Scale

The market is much potential in Sri-Lanka as human resources will be cheap in compared to Italy
and UK apart from that Sri-Lanka is based on shore of Atlantic ocean so that water and other
natural resources is also obtainable easily and in the cheap rates from the local markets
(Thorniley, 2013). With the empirical study conducted by author Fey it was found out that many
foreign companies had enter the Sri-Lankan markets for cheap labor and vast availability of
natural resources extrusion from land of Sri-Lanka. The research suggest that Sri-Lanka is
considered as most cost effective as compared to China and India, and their market potential will
also increase in the next 5 to 10 years with lot of development.
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4.4 Challenges faced in global markets.
There are many challenges coming in the companies at the time of set of project and after when
the set-up is installed in the company. The first big challenge the company will find is their
language is not similar so there will be many important document that needs to submit in the two
languages the English and Sir-Lankan national language (BBC, 2009). The HR is again the
second most issue and challenge for companies, the nature of British employee is bit different
from the other employee. The human resources should be appropriate according to the
requirement of the company, as there should be no compromise in that otherwise it will affect the
companys business. .
Challenges faced in Sri-Lanka
The HR transfer from UK will have to adopt the Sri-Lanka pattern of work and their cultural is
making companies more negative in terms of getting their business down in Sri-Lanka. There are
companies who are scared to invest their money in Sri-Lanka because of uncertain climate, the
Sri-Lanka much often faced storms and other natural calamities happen that 65% business
believes that it is very risky. The facts and figure find out from the various studies and empirical
research done by scholars and experts in order to study properly the Sri-Lankan markets. The
other risk faced by Sri-Lanka market is there arbitrary tax system, uncertain legislation, problem
of bureaucracy, unstable economic and political condition etc. (Fey & Dension, 1998). There are
firms which are working in Sri-Lanka are MNC and they often faces such problems, as out of
100 MNC the only 18% just that they are ok with political laws and unstable economic as their
nature of business is not affect much with but remaining firms where having either of the issues
that is mention in the research of Fey. The ratio is going high and high year on year (Fey and
Shekshina, 2008). The researchers suggest that local employee in Sri-Lanka is having lack of
knowledge regarding the modern management and advance techniques implemented in the
business
Conclusion
If the local specification and cultural issues are kept aside then there would be more opportunity
for project success and the cost effectiveness is seen by the business analyst in Sri-Lanka is seen.
The barriers are deal with proper understanding and appropriateness should be maintained so that
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project will be implanted successfully. The legal issues are almost faced in each and every
country, still MNC goes global, as each and every operation are just not possible at single
location or single country there are many countries who had gone international and had
diversified work forces. Seeing a Case of BA I can say to implement whole plant and shift HR to
Sri-Lanka will take more 2 to 3 years to set as whole. The political condition other issues like
management styles, or cultural etc. that can be overcome easily by setting good and effective
Management
and understanding
of (figure:1
Asian cultural
implementationStyle
of organizing
model in the BA plant.
visualized solution )
Democratic Approach
Suggestion
language
individualism / collectivism
need for relationship
Legal Risk
Home Country:
UK
Host Country:
Globalization and challenges for going global
Sri-Lanka
Reasons for Entry to Russia:

Top 7th host economy in the world
Ease of doing business in Sri-Lanka under BIT trade policy
Opportunities for growth
Expected lower plantation of project cost
Access of cheap HR with good skills
High GDP growth
Best Cost cutting tools
Potential for 20% cost reduction
Increase profits in future years
Competitors in Sri-Lanka
Natural resources in Sri-Lanka
Higher Sale-per-capita than China or India
Moscow and St. Petersburg as good locations
Source: self-made
19
Political Risk

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22

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