Submitted By: Roll No:

Allaudin Khan\ 908106

In partial fulfillment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION This thesis has been accepted for the faculty of Federal Urdu University By: Mr. Abdul Aziz Memon

Acknowledgment
In the name of Allah, the Most Gracious and the Most Merciful Alhamdulillah, all praises to Allah for the strengths and His blessing in completing this thesis. Special appreciation goes to my supervisor, Abdul Aziz Memon, for his supervision and constant support. His invaluable help of constructive comments and suggestions throughout the experimental and thesis works have contributed to the success of this research. Not forgotten, my appreciation to my co-supervisor, Sir Masroor Ahmed Siddique for his support and knowledge regarding this topic. Sincere thanks to all my friends especially Naseer ,& Rizwan and others for their kindness and moral support during my study. Thanks for the friendship and memories.

Abstract
The purpose of this report is to explore the international HRM issues for the organization intending to expand its VET operation into the Australia from Pakistan. In the research, it is found that Australia has successful model of Vocational Education Training which is globally recognized, effectively linked with industries, great support from the government to attract the international student and investors. Since at home country (Pakistan) the VET system is poor and lack of support from authorities, it is highlighted how organization may play influential role to strengthen VET at home country form Australian experience. According to Hofstedes cultural dimension Australia is individualist, low power and weak masculinity society. At the other hand, Pakistan is great differs from Australian national culture especially at macro level. It is discussed in the report what motivational and leadership style would organization has to consider while expanding operation internationally. For the core HR activities recruitment and selection, mentioned that organization has to consider driving and learning factors for the organization and has to mainly focus on polycentric approach to avoid cultural issues and better services to end users. In planning training and development events for employees, organization has to consider language, learning style and education system. For managing performance, the employee performance should be linked with the organizational critical success factors, need of individualist and collectivist society has be considered, goal setting process should be more clear, open and managers have ability to analyse performance and also consider legal implications in managing poor performance.

Since Australia has wide rage of industrial relations, regulations and law are enforced effectively at every level, so what legal and ethical implication has to be considered while operating business in Australia. Apart from suggesting recommendation for the effective IHRM practices and proactive approach to deal with cultural implication, it is being recommended that HR department needs to be well qualified and trained, especially in the competitive market to play its role as strategic partner and for the smooth business operations.

Table of Contents

Acknowledgment Abstract Introduction Methodology and Limitation Company and its Operations 5.1. Australia (HCN) 5.2. Pakistan (PCN)

Rationale for Choosing Country 6.1. Recruitment and Selection 6.2. Training and Development 6.3. Performance Management Environmen Implications for IHRM Practices Leadership Style Motivational Style Legal Consideration in HRM Ethical Considerations In IHRM Recommendations References

1.Introduction
The overall aim of this report is to give an overview about the possibility of expanding business into Australia for vocational education implication and training.Understanding on the organization. and about the environment report will and be differences in PCN (Pakistan) and HCN (Australia) cultures and its Further, this researching about what IHRM polices and procedures (recruitment selection, training development and performance management) leadership style, motivational factor, ethical and legal implications need to be considered in the international environment and recommendations based on the research for the effective HRM support to the organization.

2.Methodology and Limitations

Lack of literature especially in the context of Pakistan and covering all topics within given word limitation were the main limitations in doing this assignment. I could not obtain research articles, online business reports, or specifically any case study which describes the experience of establishing a business in Pakistan. To overcome this I read articles which from the countries which have close socio-cultural and geographic to Pakistan to make sense of the possible issues any international organization can have while establishing a system in Pakistan. However, being a Pakistani with seven to eight years of working experience in Administration and HR department, I was able to relate and identify the cross-cultural differences as reported in the literature. Probably, if I would have been in Pakistan, I would have visited similar models of international joint ventures to provide strong justifications on the IHRM implications in setting up a business in Pakistan. In order to complete this assignment, mainly focused on academic articles, IHRM and management books, public and private official websites of PNC and HNC.

3.Company and its Operations

The Institute for Advancing Careers and Talents knows as iACT is a non for profit and subsidiary organization of Habib University Foundation. The core mandate of this is foundation to establish a world class university along with initiating and supporting various social developmental programmes. At present iACT is in process to strengthen vocational education in Pakistan by developing syllabus, offering industry based learning programmes that have better job prospects for youth to meet the unemployment challenges. At present, offering courses in IT, Fashion Designing, Retail Management and call centre. Several groups has completed their certification and successfully got job in the business industry. The management beliefs that there is lot more to do to link VET programmes with industrial requirements; also developed various partnership with Govt, business community and international organizations to replicate successful model and to support the VET in Pakistan (Habib University Foundation 2011)

4.Rationale for Choosing Country

Australia has done tremendous work in vocational education and training (VET). Australian VET model and qualification has sound acceptance and recognition all over the world, which successfully linked VET programmes with the industrial requirement and also with the overall Australian qualification framework to address the need of diverse field. Australian VET is the constitutional responsibility of six Australian states, two territories and role of commonwealth government is as ninth partner (OEDC Systemic Innovation in VET 2009) Sound political stability, seriousness and supportive attitude from the government in supporting different educational initiatives (internship, traineeship, scholarship) and reasonable allocation of

budget, $33 billion allocated for education for the year 2010-2011 and VET sector is the focus of education budget- skills for sustainable growth (Harrington & Dow 2010) also helped to build and maintain the interest of international students and educational investors (colleges/universities). Also Australia is considered as hub for the international students, every year, more than 400,000 students from around 200 countries receives Australian education (Study in Australia, 2007-08) In 2004, Australia was the fifth largest destination for overseas students and international student was the third major source of Australian economy-2004-05 (ABS 2007) As per March 2011 statistics, Vocational education and training was the 2nd largest area of study for the international students, 21.4% (Australian Government 2011). Being a multicultural country, the Australian society has greater acceptability to adjust people from different countries/background, freedom to practice their culture and belief. Sound financial stability especially after GFC, soft immigration policy, rule of law, stable law and order situation are also key factors to attract national students and investor towards Australia. It is hoped that he expansion of international operation in supportive environment would provide great opportunity to the HQ to mobilize and take support from public and private organizations, learn from Australian VET system and strengthen PCN operation. organization to run their business operation smoothly. Also convincing figures and interest of overseas students would help

5.
5.1. Australia (HCN)

Environment

Commonwealth of Australia, known as Australia has parliamentary democracy government. Power and procedures of Australian

government

are

defined

in

written

constitutions.

(Australian

Government 2010) Rule of law, justice and independence of the judiciary are core principles of the Australian legal system (Australian Government 2008) Considered as one of the most stable country in the region because of its political, economical and social Government and regulatory institutions are reliable, transparent, independent and globally competitive. According to world competitiveness yearbook 2007, in the Asia Pacific region, Australia was ranked as having the lowest risk of political instability and in the world its ranked was fourth lowest. Only country in the world, consistently maintaining is political stability since 1999. Safe and sound quality of life attracts attention of people from all over the world. Also sustained highly skilled and diverse workforce, more than 30 percent workforce has tertiary qualification across all the sectors. Offers stable and flexible business environment and policies to the Investors, strong support and encouragement from government through legal framework that strengthen security, trust and efficiency in the system. Also has been declared first in the world in global corporate governance ratings. (Australian Government 2008)

5.2. Pakistan (PCN)

Like Australia, Pakistan also has democratic parliamentary system with the written constitution since 1973. Constitution and democracy has been suspended and restored several times due to poor governance from political parties and in the result military involvement in political issues. Since 2009 country is enjoying democratic government system which was suspended in Oct 2002. Since its formation, country is facing political instability due to number for internal problems and external pressures. 10

Good governance, sustainable economy, rule of law, justice and delivery of political agenda has been major issues and none of them addressed efficiently by both form of government (democratic govt. and army rule). Political instability/involvement and bad governance also affected the services and financial performance of several national corporations. Strong western interest has been observed due to its geographical location specially developing western interest/involvement in the Afghan politics after 9/11. Over the last ten years, unemployment rate almost has been doubled from 8% t 15% and population below poverty line is 24% (CIA 2011) Because of poor political and economical conditions, investment on education has not been priority of Pakistan, various national and international agencies are working to improve the education standards in Pakistan. At present government is investing less than 2.0% of GDP on education, trying efforts since 2000 to improve and expand education system (Kazmi 2007) In order to strengthen country economy government is focusing to offer flexible trade policy to build the trust of foreign investor. Below table is the brief overview of both culture according to Hofstedes cultural dimensions (Hodgetts, Hodgetts & Doh 2006, p110-113)

Cultural

Australia

Pakistan

11

Dimensio n High/Low Power Distance Low power distance society, less structured and decentralized/consult ative management and decision. Focus to empower lower level. Freedom to speak and share idea/thoughts. Focus on trained and skilled workforce. Pakistani system is more hierarchal with high power distances. Centralized decision making system. Power is remained and enjoyed by higher authorities/individuals. Follow autocratic style, no or less flexibility to raise voice of individual thoughts. Power distance created inequality between people and groups. Juniors are supposed to respect elders and High/Low Uncertaint y Avoidance Low uncertainty avoidance society, Look for new ideas/initiatives and more innovative. Encourage diversity and different ideas for the success. Ability to adopt and face complex situations. superiors. High uncertainty avoidance society. Avoid taking new initiatives /risks, follow defined structures, rules/ instructions. Less speaks about rights/issues, feel threaten to face new situations. Stable and secured environment helps to improve motivation.

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 Individuali sm m V/s Collectivis Individualism society, focus on personal needs. Look for personal promotion, reward and autonomy. Focus on job, less efforts for relationship. Motivated through sharing ideas/involvement in decision making and Masculinity v/s Femineity flexibility. Weak society, cooperation Low stress work environment. Managers give freedom to employees for growth and credit for the achievements. Female level boards. Support to strengthen surrounding environment. holds jobs and high in in Masculine focus on and

Demonstrate loyalty with organization/brand. Collectivist society, focus to be in groups. Decisions linked More benefits with reserved, are group avoid

acceptance. direct confrontation. Importance to non-verbal language voice tone. as body language, eye contact,

Strong masculine society, focus on earning and recognition. High job stress and low freedom from managers. Achievement is considered with wealth. Less freedom/opportunities for females-minimum supervisor positions.

friendly environment.

representation

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It is high probability that sound political stability, govt. initiatives for the educational activities, existing Australian VET model and Australian market for the international students would help organization to make smooth transition. Also there would be an opportunity for the PCN employees to experience and learn from the environment to improve their understanding about VET. PCN may also develop avenues and mobilize public and private organizations working in Australia-VET areas to support HQ VET operations; also experience from Australia may help PCN to play influential role to mobilize Pakistani VET authorities. At macro level there is much difference between both countries culture but at micro level especially people working in this area have some basic understanding about the western cultural norms. Apart from many positive aspect of expanding business overseas, it would also be a challenge for the organization. The provision of regular training about both cultures, relevant IHRM polices and proactive approach to manage possible cultural and IHM issues could make it more beneficial for everyone.

6. Implications for IHRM Practices

Apart from the increasing organizational profitability, maintaining the interest of share holders, and expanding business, international operations provides great opportunity to the organization to learn from host country competitors, practices, add value and an opportunity to replicate the best practices at PCN. This developing trend also opened many challenge for HR professionals to think more strategically how they can add value for the successful operation of international business by utilizing optimum resource.

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Similar to other functional specialist, HR professional also facing challenges to address three competing aims to serve more professionally through minimizing the cost of services and head counts (operational driver), offer quality services to address the increasing demands of unit heads and employees (relation driver) and to support the strategic business of the organization (transformational driver) (Cier, Fenwick & Hutchings 2005)

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Areas Recruitment (Internally)

IHRM Implications What criteria and agreement would be required for internal recruitment and selection for the international

assignment? Following are few main areas of IHRM for which organization need to What factors do we need to consider other than technical competency and past performance for the international assignment? What type of human relation skills would be needed? Do we need to consider gender, age, academics for the selection or preference will be given on organizational need? What cross cultural orientation programme would be needed for the employee and his/her family? What immigration and govt. laws need to be considered for sending staff for overseas operations? What skills and training existing HR department/line manager is needed to manage with all these issues Recruitment (Externally) professionally and legally? What best economical sources are available to hire required workforce? (newspaper, websites, recruitment company, university graduates) Role of HQ HR office in the recruitment and selection processes and what type of service level agreement needed between PCN and HCN offices? Probationary period-operational and legal requirement? What assessment and selection process would be used for selection, considering the environment and job requirement (interview, committee decision, industrial psychologist?) What legal requirement need to consider for the hiring (unions, EEO, anti discrimination law, privacy act and govt. legislation)? What type of employment (part time, full time, contractual) would suit organizational need? What degrees of gender balance need to maintain considering organizational business and culture? What orientation programme would be needed for 16 external recruitment (organization vision/goal language, culture), ?

17

6.1. Recruitment and Selection

In organization, recruitment, selection and induction system play key role in hiring and maintaining quality workforce and evaluating its overall effectiveness. Efficient management of this important area also provide competitive edge over its competitor (Jones 2010, p.368). According to the top HR issues of 2000 (citied in Stone 2005, p 187) Downsizing, global skills shortage and pressure to save cost and compete has made recruitment top priority. Since the idea of international expansion is to add value in PCN VET through host country model/experiences, so organization has to consider the purpose of recruitment/assignment, type of staff, at what time and from where and they need to recruit. To understand this need organization has to define what are demand (launch new initiatives, subsidiary start up, managing control, functional tasks) and learning driven (business skills, team development, transfer of skills and knowledge) for the organization (Schuler, Briscoe & Claus 2009, p.186). For international business the organization has to make some necessary amendments in their existing HR policy. Considering main objective of expanding business internationally and addressing learning driven factor and shortage of skills at HQ (lack of VET speciality); organization has to make necessary provision in their recruitment policy to adopt polycentric approach for most of their mid and low level vacancies for both academic and non academic staff. To deal with the driven factor for the operations to start up business with better organizational understanding, practising HQ polices and managing control, the provision of ethnocentric approach should be adopted for some management level position.

18

At HQ, handling and addressing HR activities are less legislative and less formalized as compare to the Australia. In Australia the employment is being offered and accepted in different categories, (full time, part time, job sharing, contractual, seasonal staff,) organization has to develop flexibility in their recruitment policy to attract the potential candidates by choosing most economical option. Also organization has to take into consideration that different employment comes under different types of award, collective agreement and has to oblige with state and federal legislations. Further to oblige with internal polices and external legislation, organization has to develop sound understanding to deal with external service providers (auditors, consultants) professionally. The provision of service level agreement within organization (PNC & HCN) and external bodies with would avoid any ambiguity and improve the overall services. In highly competitive environment, to attract, keep motivated, retained skilled/experienced and maintain internal and external competitiveness, job evaluation, persons specification has to be the part of recruitment policy. Further, organization has to incorporate following part in their recruitment and selection policy. Equal Employment Opportunity Anti Discrimination Act Privacy Act. Occupational Health and Safety Unfair Dismissal Fair Work Act-National Employment Standards-Flexible Work Environment

6.2. Training and Development

Culture, Learning Styles, Education Level and Forms, Language, Training and development laws and Transfer of Learning are main

19

issues for the training and development in international context. (Schuler, Briscoe & Claus 2009, p. 202-207) Before initiating any training programme organization has to understand educational process. Like many Asia countries, also in Pakistan, education system is much formal, more authoritative, and delivery is done through one way process as compare to Australia where education is system is less formal, focus on interaction and encourage student participations. Organization also needs to consider what learning style would be suitable in diverse culture between high/low power distance, high/low uncertainty avoidance and various training techniques (brain storming, simulation, case studies and experience based). Language also play important role in the success of training, since the organization is academic institution and most of employees are able to understand and speak English reasonably at the home country, so the single language (English) would be more effective in terms of quality, easily availability of delivery/resources, cost and with the provision of learning english where necessary at some staff level. Organization also needs to take into consideration how effectively they deal different internal and external laws both at PCN and HCN (regulatory compliance being an academic organization for the course delivery, training bonds, raise in pay with the knowledge and skills, pressure from staff and union and to retain their skilled employee). Further, in terms of transfer of learning, organization also has to asses through job performance, regular follow ups with the line managers, employee as well customer how training and development is being incorporated into work practices.

6.3. Performance Management

Organizations expect high performance, like MNCs give extra consideration about the performance of their workforce, project and for the entire business unit. Utilize their best effort to align expected job result with the overall business strategy and focus on highly 20

engaged employees and teams to achieve their business goals and compete. (Schuler, Briscoe & Claus 2009, p.287). In the competitive and diverse work environment, the role of HR demands consider several factors in designing and implanting performance management system for the MNE, how the employee performance will be aligned with organizational critical success factors (CSF) as well the purpose of the overseas business and how performance appraisal will support other functions of HRM and HRD (training, managing performance, rewards). Following approaches may help to improve the organizational effectiveness. To make it more effective and involve every stake holder in PMs, it could be divided into three parts plan, performance and review. A) planning-based on the organizational vision/mission define CSF for the organization, develop strategic and operational plans based on the organizational CSF later on link these departmental CSFs with the KPIs for the individual/teams with provision of capacity building (training, development and new skills). B) Performing-based on the defined CSF and KPIs monitoring by management-contribution and behaviour of individual, self/peer monitoring and consider the internal and external environment. C) Reviewing-analysing and appraising performance based on the evidences, opportunity for the individual to review his own and feedback on manager performance, contribution of individual/teams how would it improve further. (Tovey, Uren & Sheldon 2010, p.62) Consider cultural diversity (low and high power distance) to review performance, who will be responsible and what sources would be appropriate to get feedback (formal, informal, individual and team based performance). Hofstede (cited in Glinow, Drost & Teagarden 2002, p.123-140) Like in individualistic societies (US, Australia and Canada) the relationship between employee and manager is more utilitarian/practical like a business. (Hofstede, 1991) Employer

21

expects from their employees to perform according to the need and also employee acts to optimize own needs (Glinow, Drost, & Teagarden 2002). Also team based assignments and performance management system will support both employee and employer, learn from team member skills, expertise to maintain high quality performance. In last twenty years, the trend of team working has been increased. It provides opportunity to the employees and organization to deal with the complex organizational assignments which are beyond ones compatibility and tool to empower teams as decision making decentralized. Also effective teams and members support to reduce cost, improve quality and provide competitive edge (Ambos & Mahnke 2010) Especially in Australian context the goals setting process should be more open, agreed between line manager and managers and employee or team should given a room to take the responsibility in decision making process and well communicated. Line manager should be well trained about the cultural implication, how cultural adjustment may affects on the employee performance, ability to analyse what needs to evaluate, avoid potential problems in analysing performance (intervention, human error, halo effect). Also ability to provide or arrange necessary support (coaching, mentoring, training) if any employee is going through with underperformance. Robert (citied in Tovey, Uren & Sheldon 2010, p.147) lack of skills in analysing performance may affects credibility, effectiveness, purpose and reliability of PMs. Performance should be discussed with the employee on quarterly basis rather than just assessing at the end of the year just for organizational activity. It will provide a chance both employee and

22

line manger to reflect on the performance and made necessary alignment during the year. In the Australian context, HR and line manger should be well trained about legal implication (industrial laws) of dealing with under performance, unfair dismissal and to deal with unions.

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7. Leadership Style
To deal with diverse work force, leader should be multicultural leader. S/he has skills and attitude to inspire, keep people motivated from diverse background and lifestyle. Has provision to adopt different approaches and show flexibility to fulfil the need of diverse workforce. (Durbin, Dalglish & Miller 2006, p.431) In such environment leaders has to build long term relationship or partnership with their team members to share the power and responsibilities for the achievement of organizational objectives. Peter Block (cited in Durbin, Dalglish & Miller 2006, p.3) mentioned that in a partnership power is almost balanced between leader and group members. In order to build effective partnership, leader has to create an environment to exchange of purpose, right to say no, joint accountability and absolute honesty. (Durbin, Dalglish & Miller 2006, p.4) and Since the organization academic, is mainly based on leadership as compare to other business environment. professional and certified staff so its needed minimum supervision Considering the nature of organization, its business and environment (weak masculinity society), participative leadership style would be more appropriate. This will facilitate the environment of sharing decision with members, working with team, take everyone in confidence, opportunity for leader to keep team motivated through consultation, also help leader and organization to take feedback from those are closer to end users. Further, participative style will encourage coaching teams, discuss and negotiate their problems and collaborating with others. Since most of the employee would be professional, competent, eager to take responsibility and wanted to involve in decision making process so participate leadership style work well in this case.

8. Motivational Style

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For the multinational operations, managers and organization has to understand the need of individualist and collectivist cultures and while thinking and using any reward as employee motivational factor. Monetary incentives are not only tool to keep employee motivated and expect high performance (Mead 1998, p.190). In individualist culture (Australia) people critically evaluate and ask what in for me, in this society personal and professional achievement are important, they motivated by having an opportunity of sharing ideas, freedom to speak, professional development, autonomy and flexible working hours. However, organization also has to consider the motivational factors for their expatiator such as job security, stability, health and safety, opportunity for self learning and recognitions of their achievements.

9. Legal Consideration in HRM Policies

Occupational Health and Safety

In Australia, each state and territory has legislation governing

occupational health and safety. Legally employer is responsible to provide safe and sound work environment and maximum information about potential hazards at workplace. (Jones 2009, p.415) To compliance with regulations, organization has to develop clear understanding about their employee and employer rights and responsibilities.

Equal Employment Opportunity

Organization has to be very careful when managing any recruitment, selection activity (placing ad, interview questions, and organizational activities training, retention, redundancy). It is unlawful to

25

discriminate on the basis of gender, race, nationality, colour and religion.

Fair Work Act

In Australia employment comes under different types of awards or agreements and different types of wages rule applies. Also this law impose minimum entitlements are called national employment standards.Organization to get adequate understanding of these law and legislation to oblige with the legislations.

Unfair Dismissal
Termination of employment without obliging the defined rules is

unlawful. Workplace Relations Act 1996 (Cwlth) administer procedural fairness to deal with employee termination. In addition to these legislation there are series of legal

obligations/laws for the employer (privacy act, anti discrimination, sexual harassment, protocols for grievances, mediation) that need to be incorporated in organization policies and practices to avoid any irregularities and for smooth business operation.

10. Ethical Consideration in HRM Policies

Milton Friedman (cited in Mulligan 1986) suggested that in business action should be ethical and legal while maximizing profit. Also (Grace and Cohen 2010, p.34) mentioned that good ethics is good business, further they mentioned that business does not operate because its support particular individuals, business serves society and fulfil individual and collective needs. In order to operate business ethically in the society and to provide guidelines to every

26

stakeholder, organization should develop a code of ethics/conduct that reflects organizational values and responsibility as member of the society. Organization has to consider ethical implication that no preference would be given based on gender, age, colour, religion. How would facilitate people have disability, with some assistance people may make valuable contribution in society-organizational responsibility as an effective member of the society. Also provide safe and sound workplace environment to every stake holders (physical-injuries and psychological hazards-bullying, stress) employee rights to know about relevant information, possible hazard, health implications if associated with any particular job. Guidelines what is right, wrong and ethical and unethical in particular environment, while managing business activities. (Exchanging gifts/souvenirs and extra money to speedup work could be considered as corruption) Fairness and justice approach that everyone will be treated equally and equal opportunity managing T&D, PM, managing grievance, allocating resources. No discrimination with women facing pregnancy phase. Apply utilitarian approach that provides maximum benefits to large number of people and les harm (e.g. finalizing tea/lunch break timings, meeting venues, preference should be given that produce more pleasure for everyone)

11. Recommendations
27

Considering the learning driven factor for the organization (business skills, team development, transfer of skills and knowledge) and shortage of skills at PCN to offer vocational training programmes, organization has to choose polycentric approach for medium and junior level positions. Apart from minimizing the international staff cost (hiring, accommodation, travel, adjustment problem, families issues, and extensive cross cultural training) this approach would benefit organization to understand the need of their customers having same culture, provide quality services according to the environmental standards. Also the availability of trained workforce with different engagement options (full time, part time, seasonal) is easily available as compare to Pakistani environment. In addition to this, this would help organization to utilize this trained workforce to add value to the HQ operation, minimize the cost as compare to hiring consultancy services for the home business and staff training. Since the low and medium level staff has direct interaction with the end users (students/community) it would also eliminate the risk of cross cultural issues.

For the demand driven factor and to manage supervisory control over the business, utilize organizational resources wisely and to develop the team of global manager, preference should be given for internal recruitment (HQ employee). This approach will take less time to understand the organizational dynamics, vision, values and to use resources to transfer of knowledge for both countries. It would also help organization to place organization interest well, avoid any uncertainty of staff retention at higher level and utilize/share organizational available resources both PCN and HCN wisely. Further it would build the team of global managers and may use later at any other place if needed.

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Since the organization is mainly relaying on overseas model to add value at home country vocational centre, the focus of capacity building of overseas staff and use them for HQ business could be more economical option. The training of foreign staff would add value to foreign subsidiary to deal with their competitors and also replicate that training for the headquarter staff to avoid any additional cost (training fee, travel of trainees, resources).

Adding

technology

for

the

training

programmes

(video

conferencing, online training) would also effective, economical option and also provide a greater chance to participant to learn during their job, academic breaks, from each other experiences and to maintain effective working relationship between PCN and HCN employees. To be more effective in terms of cost and providing quality services to external (students/community) and internal (managers, employees), organization may develop a team of trained people to provide ongoing and on job training to their employees. While selecting staff from headquarter for overseas operation, it should be mixture of age, experience and education so they can adjust effectively and support each others. People having overseas experience may adjust easily as compare to others. Married, couple belongs different fields and female staff may face adjustment problem for the overseas responsibility and may add additional employment cost. Also recruitment policy must have a provision for different types of employment opportunities (full time, part time, job sharing, seasonal staff, contacts and consultancy) to chose best possible option.

29

Since Australia has wide range of industrial laws, regulations and active union role, so organization has to adopt proactive attitude to familiarize and gets proper orientation for all these legal compliances to deal with internal and external clients. Failure to compliance with laws may affect organizational image and may increase overhead cost.

In order to offer high quality services, avoid ambiguities with the internal and external compliance, organization should develop service level agreements with internal (HR, Finance, Audit) and also with the external regularity authorities.

The services of HCN employee may be used to provide training for the PCN employee to save some cost (training cost, travelling and others).

Comprehensive cross cultural training should be planned for both expatriate and HNC employee. Without providing understanding of culture it might possible that people may face major social problems or challenges and their acceptance could be in trouble. (Stone 2005, p.788)

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12. References
Habib University Foundation, viewed 6 May 2011,

<http://www.huf.org.pk>. OCED 2009, OECD/CERI Study of Systemic Innovation in VET,

Systemic Innovation in the Australian VET System: Country Case Study Report, viewed on 18 May, 2011 <http://www.oecd.org/dataoecd/17/38/42243354.pdf> Harrington & Dow 2010, Budget 2010-11: Education and Skills,

Budget, Parliamentary Library, Parliament of Australia, viewed 18 May, 2011 <http://www.aph.gov.au/library/pubs/RP/BudgetReview201011/EducationOverview.htm> Study in Australia, 2007-08, Education in Australia, viewed 18

May, 2011 <http://study-australia.info/Education_in_australia.html> Australian Bureau of Statistics, 2008, Australian Social Trends, 2007, International Students in Australia, viewed 18 May 2011 <http://www.abs.gov.au/ausstats/abs@.nsf/0/E0FE4ACEF9C8A65A CA25732C00207596?opendocument> Australian Government 2011, Department of Education, Employment and Workplace Relations, Monthly Summary of International Student Enrolment Data Australia YTD March 2011, viewed 18 May 2011 <http://aei.gov.au/AEI/Statistics/StudentEnrolmentAndVisaStatistic s/2011/2011Mar_MS_pdf.pdf>

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Australian Government 2010, about Australia, our government,

viewed 18 May, 2011 <http://australia.gov.au/about-australia/ourgovernment> Australian Government 2008, Department of Foreign Affairs

and Trade, About Australia, Legal System, viewed on May 18, <http://www.dfat.gov.au/facts/legal_system.html> Australian Government 2008, Department of Foreign Affairs

and Trade, About Australia, Investing in Australia, viewed on May 18, 2011 <http://www.dfat.gov.au/facts/legal_system.html> Central Intelligence Agency 2011, The World Factbook, South

Asia, Pakistan, viewed on May 18, 2011 <https://www.cia.gov/library/publications/the-world factbook/geos/pk.html> Kazmi, S.W., 2007, Vocational Education and Skills

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international human resource management: balancing the duality 32

of strategy and practice, International Journal of Human Resource Management vol. 16, no. 4, pp 584-598. Jones, R, 2005, Managing Human Resource Systems, 2nd ed,

Pearson Education Australia, Australia. Stone, R.J, 2005, Human Resource Management, 5th ed, John

Wiley & Sons Australia Ltd, Australia. Briscoe, D. R., Schuler, R. S. & Claus, M.C., 2009, International

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