Recruitment and Selection of Senior and Junior Structural Designers for Bechtel: Sample of a Job Analysis

Human Resource Management

TO: Human Resource Manager

DATE: 8 July 2011

SUBJECT: Recruitment and Selection of Senior and Junior Structural Designers for Bechtel

Executive Summary

In this report, job analyses including job descriptions and job specifications of Junior and Senior Structural Designers position as required by Bechtel are discussed. The discussion includes a pre-drafted advertisement in the ‘The National’ which is one of the leading newspapers in United Arab Emirates. Selection strategies are identified as internal recruitment, industry events participation and online job listings. An orientation plan which spans immediately after the selection and the first week of work is detailed at the end.

Job Analysis

This job analysis is representative of position to be filled in an engineering-specialising company named Bechtel. Bechtel is a privately owned company headquartered in San Francisco but it has offices worldwide including in Abu Dhabi. Such a company is a global leader in engineering, construction and project management. In fact, Bechtel has record revenues for the past five years and Engineering News Record had named Bechtel as the top US Construction Contractor for 12 straight years. Bechtel employs about 52,700 employees worldwide.

Nonetheless, because of project bookings in 2010-2012 particularly in Khalifa Port and Industrial Zone, Bechtel currently requires Junior and Senior Structural Designers.

Job Title: Senior Structural Designer

Classification: Full-time Employee

Business Unit: Civil

Department: Engineering

Location: Taweelah, Abu Dhabi

Pay Grade: Level VI

Reports to: Junior and Senior Structural Engineer

Job Description

A. Summary of Position

The Senior Structural Designer is responsible for performing civil and/or structural design and drafting duties on assigned projects.

B. Job Duties

The Senior Structural Designer is responsible for:

• Assisting the project manager in developing estimates, schedules, material lists, design concepts, design drawings and other project documentation per customer and corporate guidelines
• Performing field related work collecting design information and verifying tie- ins, function and clearances
• Performing temporary field support activities, where assigned, for engineering support during construction
• Assisting engineers with cost and material estimates and preliminary design studies
• Checking the accuracy and quality of drawings

Job Specification

A. Education and Experience

1. Diploma in Civil Engineering is a minimum requirement
2. Ten or more years of direct related experience or technology-oriented associate degree with equivalent experience
3. Working knowledge of OSHA, IBC, AISC, ACI-318, ACI-530, and ASCE-7 codes 
4. Experience in preparing structural and civil construction plans and specifications
5. Should be acquainted with engineering practices followed in the engineering industry

B. Skills and Aptitude

1. Being knowledgeable of basic civil material specifications to the extent that all
   information required for material purchase, fabrication and construction is
   reflected on the finished drawings
2. Performing temporary field support activities, where assigned, for engineering support during construction
3. Knowledge and understanding of schedule constraints and information requirements for the production of all civil/structural deliverables
4. Working knowledge of Windows, Microsoft Office, Microsoft Project, various CAD software packages

Job Title: Junior Structural Designer

Classification: Full-time Employee

Business Unit: Civil

Department: Engineering

Location: Taweelah, Abu Dhabi

Pay Grade: Level V

Reports to: Senior Structural Designer

Job Description

A. Summary of Position

The Junior Structural Designer is responsible for assisting the Senior Structural Designer in preparing drawings and updating them as required during the design process. It is also the responsibility of the Junior Structural Designer to ensure that drawings produced are checked, approved and filed in accordance with the relevant quality system procedure.

B. Job Duties

The Junior Structural Designer is responsible for:

• Assisting in the development of civil or structural drawings for a project or proposal
• May occasionally exercise work direction to draftspersons involving guidance and instruction on work methods and checking finished work
• Works under direction with scope for independent judgment in planning and organization of methods.  Receives assignments is terms of objectives and priorities. Work is reviewed for general acceptability and accomplishment of objective
• Makes specific recommendations on the utilization of new drafting technology normally within an area of specialization. Makes technical recommendations within an area of specialization
• Checking the accuracy and quality of drawings 

Job Specification

A. Education and Experience

1. Diploma in Civil Engineering is a minimum requirement
2. Should have at least 8 years of direct related experience or technology-oriented associate degree with equivalent experience
3. Working knowledge of OSHA, IBC, AISC, ACI-318, ACI-530, and ASCE-7 codes 
4. Experience in preparing structural and civil construction plans and specifications
5. Should be acquainted with engineering practices followed in the engineering industry

B. Skills and Aptitude

1. Being knowledgeable of basic civil material specifications to the extent that all
   information required for material purchase, fabrication and construction is
   reflected on the finished drawings
2. Performing temporary field support activities, where assigned, for engineering support during construction
3. Knowledge and understanding of schedule constraints and information requirements for the production of all civil/structural deliverables
4. Working knowledge of Windows, Microsoft Office, Microsoft Project, various CAD software packages
5. Experience in preparing structural and civil construction plans and specifications
6. Working knowledge of static and dynamic load applications

Job Advert

Job Advert for Senior Structural Designer

CLASSIFIED ADS Senior Structural Designer Bechtel is looking for a Senior Structural Designer who will be responsible for performing civil and/or structural design and drafting duties on assigned projects. Responsibilities: Assisting the project manager in developing estimates, schedules, material lists, design concepts, design drawings and other project documentation per customer and corporate guidelines Performing field related work collecting design information and verifying tie- ins, function and clearances Performing temporary field support activities, where assigned, for engineering support during construction Assisting engineers with cost and material estimates and preliminary design studies Checking the accuracy and quality of drawings Requirements: Diploma in Civil Engineering is a minimum requirement Ten or more years of direct related experience or technology-oriented associate degree with equivalent experience Working knowledge of OSHA, IBC, AISC, ACI-318, ACI-530, and ASCE-7 codes  Experience in preparing structural and civil construction plans and specifications Should be acquainted with engineering practices followed in the engineering industry Being knowledgeable of basic civil material specifications to the extent that all information required for material purchase, fabrication and construction is reflected on the finished drawings Performing temporary field support activities, where assigned, for engineering support during construction Knowledge and understanding of schedule constraints and information requirements for the production of all civil/structural deliverables Working knowledge of Windows, Microsoft Office, Microsoft Project, various CAD software packages Required are letter of intent, application letter, resume with no personal information, copies of transcripts and five professional references. For further details, you may call of Abu Dhabi office at: (971-2) 699-8400.

Job Advert for Junior Structural Designer

CLASSIFIED ADS Junior Structural Designer Bechtel is looking for a Junior Structural Designer who will be responsible for assisting the Senior Structural Designer in preparing drawings and updating them as required during the design process. Responsibilities: Assisting in the development of civil or structural drawings for a project or proposal May occasionally exercise work direction to draftspersons involving guidance and instruction on work methods and checking finished work Works under direction with scope for independent judgment in planning and organization of methods.  Receives assignments is terms of objectives and priorities. Work is reviewed for general acceptability and accomplishment of objective Makes specific recommendations on the utilization of new drafting technology normally within an area of specialization. Makes technical recommendations within an area of specialization Checking the accuracy and quality of drawings  Requirements: Diploma in Civil Engineering is a minimum requirement Should have at least 8 years of direct related experience or technology-oriented associate degree with equivalent experience Working knowledge of OSHA, IBC, AISC, ACI-318, ACI-530, and ASCE-7 codes  Experience in preparing structural and civil construction plans and specifications Should be acquainted with engineering practices followed in the engineering industry Being knowledgeable of basic civil material specifications to the extent that all information required for material purchase, fabrication and construction is  reflected on the finished drawings Performing temporary field support activities, where assigned, for engineering support during construction Knowledge and understanding of schedule constraints and information requirements for the production of all civil/structural deliverables Working knowledge of Windows, Microsoft Office, Microsoft Project, various CAD software packages Required are letter of intent, application letter, resume with no personal information, copies of transcripts and five professional references. For further details, you may call of Abu Dhabi office at: (971-2) 699-8400.

Recruitment Strategy

There are various recruitment strategies that will be utilised in finding appropriate candidate for the Senior and Junior Structural Designers positions. Internally, the company can consult its manpower profile to determine potential candidates. Employee referrals or the process of mentioning someone who they think is suited for the job will be accomplished (Kleynhans, 2006). This forms part of the succession planning within Bechtel.

Externally, there are two ways by which selection will be administered. First is through joining industry events. Industry events are major activities by which may industrial players participate in (Kaufman, 2008). Industry events may provide an opportunity for Bechtel to speak with several potential candidates. Other than this, only the most interested candidate will approach the booth of Bechtel.

Second, Bechtel can resort in online job listings. This is a form of online recruitment with the increasing number of human resource service providers in the Internet (Hinton, 2005). Online job listings are convenient for job seekers thus more and more applicants are resorting online for finding the perfect job for them. There are also specialty sites that provide for specific niche such that in the engineering job.

Third, Bechtel will also make use of classified advertising. Through advertising, Bechtel could communicate its employment needs to the public using various methods of advertising as newspapers and industrial journals (Kleynhans et al, 2009).

Candidates will be screened based on interviews, personality tests, skills test, references, academic performance, job simulations and on-the-job assessment. The primary motivating factor is the compensation as well as career opportunities and bonus and stock option opportunities and growth and learning opportunities.

Orientation Plan

Once the Senior and Junior Structural Designers are chosen there will be a need for an orientation plan. An orientation plan will help the new designers in adjusting with their respective positions and the culture of Bechtel. A basic orientation plan for the Senior and Junior Structural Designers is as follows:

Activities	Person(s) Responsible	Remark
Before the 1st day:
Get the work areas ready
Talk with the current members in the Design Department  about the roles and duties of the new employees
Make lunch plans for the first 3 days
Send an email to other departments about the arrival of the new employees
On the 1st day:
Welcome new employees upon their arrival
Discuss the orientation plan with the new employees
Give the new employees a copy of the email announcement
Introduce the new employees to the co-workers
Show the new employees their work area
Give a tour to the new employees
Issue keys, tools and equipments
Order business cards for both
Describe regular meetings or other scheduled meetings
Give initial work assignment
Meet with the new employees at the end of the day to answer questions and know how their days went
On the 2nd day:
Review organisational chart with the new employees
Review reporting structures
Review job descriptions and performance standards
Review work schedule
Discuss overtime needs and assignments
Review dress code
During the 1st week:
Begin the performance planning process
Schedule periodic progress reviews

References

Hinton, M. (2005). Introducing information management: the business approach. Butterworth-Heinemann.

Kaufman, B. E. (2008). Managing the human factor: the early years of human resource management in American industry. Cornell University Press.

Kleynhans, R. (2006). Human resource management. Pearson South Africa.

Kleynhans, R., Markham, L., Meyer, W., O’Neill, C., Schlecter, A. & Van Answegen, S. (2009). Human resource management: fresh perspectives. Pearson South Africa.

The Role of Forensic Accountants

Reflective Communication Exercise

Forensic accountants play different roles in organization. Thus, they can be consulting or independent experts. Both consulting and independent experts are important in the process of investigating corporate crimes. Thus, both have their different roles and duties in different cases. Independent experts are those professionals and forensic accountants that are not part of the organization or company. They are hired in order to investigate the internal and external performance of the company, connected with the accounting process. They provide an opinion before the Service in an audit, or at the Appelate Division in an appeals conference.

Aside from that, they are also assisting counsel out of court in order to understand technical issues, at the same time prepare for the case: 2005). Thus, their roles and duties in an organization is being affected by APES 215 with accordance with the Section 100, where in a member must observe and comply with the public interest obligation, during the provision of the Forensic Accounting Service. Therefore, it is important to consider the interests and advantages of the society, which include considering the rights and situations of the client’s stakeholders. On the other hand, an expert accounting consultant or witness draws upon his or her knowledge and skills in order to offer independent and objective advice and opinions no matter whose side the expert represents (Pagano & Buckhoff 2005).

 It is important to consider that the role of forensic accountant as consultant is not limited to litigation support or expert witnessing, but they can be hired in order to review and strengthen internal controls, in order to determine if any assets are missing, or to discover if tax laws or accounting rules have been applied correctly to company transactions. They are hired in order to determine if embezzlement has occurred or, if so, how much is missing and how it was done (Telpner & Mostek 2003).

 As an expert consultant, an accountant usually performs many roles and tasks that may overlap with those of an expert witness. Therefore, it is vital that before beginning an engagement, an consulting expert should first undertake a conflict search. Once conflicts have been cleared, it is vital for the accountant to understand the theory of the case and the part that he or she will play (Pagano & Buckhoff 2005). This roles and responsibilities will be affected by the APES 215, particularly because if a member in public practice is asked to offer a Professional Service to a client where: the member or the member’s firm is offering or has offered an expert witness service to the client; or the member or the member’s firm is offering or has offered an expert witness service to a different client, and the proposed professional service is connected to the expert witness service, and the member determines that a reasonable and informed third party having knowledge of the important and helpful information, including safeguards applied, would regard the objectives of the proposed professional service to be undertaken as being inconsistent with the objectives of the expert service, then the member shall decline the engagement or the relevant part thereof. As a result, it is important to disclose matters in the report of the member that will assist the court in order to assess the degree of the independence of the member (Accounting Professional and Ethical Standards Board 2008).

Generally, there are two types of testimonial witnesses, which include lay witnesses and expert witnesses. Lay witnesses are also known as the fact witnesses, because they testify with accordance to the fact within their personal observation. This include testimony that the suspect entered the store, drew a gun and ordered the clerk to empty the register is considered as a layperson testimony. The witness, assuming was in the store had personally observed the acts to which he or she is testifying. On the other hand, the expert witnesses have slightly greater latitude. This is because of the fact that they are allowed to testify with accordance to their opinions, given that they are qualified in the said field.

 They are allowed in court because of their expertise and experience and its help towards the area in order for the judge and jury to understand a given facet of the case in clearer manner. Even though the experts cannot render an opinion with accordance to the guilt or innocence of the defendant, they can offer an opinion as to a given elements of the offence. They are hail from all features of the scientific community and offer testimony on different types of cases (Sheetz 2007). In the case of Brad, he is a consulting expert in a civil litigation matter, at the same time; he was present during the time that the interview was conducted. As a result, he is an expert witness, at the same time, a lay witness.

 This is possible, because considering the lay opinions; in general, it is important to note that experts may also be called upon in order to offer testimony regarding the fact that they have perceived themselves (Telpner & Mostek 2003). For instance, in the case of Brad, he can testify regarding what he have observed and experienced during the time, that the previous employees done during the interview with the dependant. On the other hand, because Brad is qualified to be an expert witness, he can testify to matters that are considered as outside to his personal observation by focusing on the matters that will enable to help the jury to determine the ultimate fact in issue.

 The subject matter to which they may testify is limited to the area in which they have superior skill, education or ability (Silverstone & Sheetz 2007). As a result, because Brad is an expert in civil litigation matters, he can testify about the issue of the statement in the interview, because he is professional in representing parties in trials, hearings, arbitrations and mediations before administrative agencies, foreign tribunals and federal, state and local courts (Kane n.d.).

 Therefore, based on these expertise and experiences of Brad, it can be said that he has the adequate amount of knowledge and skills that will help him to give opinions that can help the judges and juries to decide about the case. This is important, since once of the most important secondary evidence, which is tape-recorded interview was unclear.

An interview is a conversation with a purpose, and that is to obtain information and, in some cases, an admission. Experienced forensic accounting investigators know that the great majority of white-collar crimes are to be solved by skilled interviewer, not by other forensic means. This is because of the fact that, there is no more compelling proof of a crime than the voluntary admission of the perpetrators (Golden & Skalak 2006).

 Throughout the course of seeking evidence and information, the forensic accountant becomes involved in the interviewing process. This process is considered as another art to master. There are many things about the interview process, and even what order to interview parties of interest, that should be learned. Most important, the forensic accountant must be prepared to handle a confession in a way that ensures that the evidence is admissible in a court law (Singleton & Singleton 2006). However, it is important to consider the fact that there are different factors to be considered during the interview process, including legal, professional and ethical factors.

 Interviews, particularly the admission-seeking interviews may raise certain legal issues and may expose the company as well as the forensic accounting investigator to different risks, including the defamation of lawsuit. Therefore, it is important for the forensic accounting investigator to proceed with the interview process only after consulting with the counsel (Golden & Clayton 2006). This include the affidavit or written or printed declaration or statement made in voluntary manner, thus confirmed by the oath or affirmation of the party by making it before an officer having the authority to administer such oath.

 It is important that the affidavit will be taken when an affiant presents information, written or oral, connected to his or her knowledge regarding the matter under investigation that has a material effect. On the other hand, it is important that two examiners or investigators are presented, where in one representative will swear in affiant after the affidavit is filled out (Manning 2005).

Professionally, it is vital that the interviewer must prepare for the witness interviews by forming and assessing different theories regarding what has occurred, yet the interviewer must always be open to new possibilities. It is important to take note that while forensic accounting investigators are trained to ask questions, different witnesses are most likely not trained in offering answers. Therefore, even witnesses are cooperative; they may not be efficient and may not be aware of what information is important. Consequently, it is important for the forensic investigators to draw out the right questions (Golden & Clayton 2006). On the other hand, in terms of ethical, it is important to focus on the human rights of the witnesses and suspects.

Therefore, it is important to ensure that they are properly informed about what are the causes of their statements, particularly the process of recording. This includes the process of informing the interviewees regarding the interview process, particularly the process of recording and documenting his or her statements and answers in the interview.

As we are in the era where computers are of growing importance to store a wealth of information – legally and otherwise, it would only be plausible to establish a computer-based forensic record keeping system. For instance, the firm could implement a write anywhere file layout filing system. The effectiveness of this is that it makes use of physical and logical backups to preserve legal documents (Hutchison et al, 1999). Its functionality enables replication and mirroring of physical images and replicating data on backup file servers of lower cost which can eventually backup data to tape. Accordingly, the firm could also exploit the use of hierarchical storage management system to preserve the integrity of legal contents. In meeting legal requirements as well such as discovery requests, it would be easy for the requestor to inspect and copy documents especially when there are physical logs and electronic logs. Probably, there is the need to create a secure evidence facility to cater to the needs of the write anywhere file layout filing system.  

Further, the authenticity of evidences does not only points to the physical relevant data but also to adequately document what data is imaged, from which machines, at what point in time and by what methodology. As such, inputs to the data management folder in computers should also include chain of custody documentation (Moorman and Schaffer, 2007). Through this, the movement of the legal documents which could serve as evidence before the court could be tracked and stored from the time of acquisition until the time of trial. Nonetheless, it is expected that data will be more voluminous hence evidence preservation should be pursued. One way to do this is to create logical backup strategies. Backup data are critical and can be kept for a long time to provide file system history while also increasing resilience to disasters. It would be also vital for the firm to use data formats in storing data that are archival in nature hence making finding relevant documents a simple process. 

Not just the forensic accountants, the accounting firm in general must understand the value of digital data hence upheld such value through protecting them. To ensure that the staff that will comply, record keeping policies and procedures must be established. Legal documents should be bonded between the firm and its users through a system of policies and set of related procedures. Such policies must cover aspects of document retention, storage area, responsibility for record keeping, box indexing procedure, box identification procedure, confidential document storage procedure, document destruction procedure and document retrieval procedure (Bragg, 2002). Hashed data procedures and custody documentation procedures will be also covered. This is to ascertain that legal documents retrieved are handed to have legitimate access and penalized those who will improperly use the documents or evidences retrieved. 

Basically, “guardian angel” qualifies for protection because s/he is an employee and holds a relevant position in Townsville Ltd. Townsville Ltd also provides services to the company under investigation hence the former is a supplier of the latter. Other grounds that make the discloser qualify for a protection is that it is made to a forensic accountant working in an accounting firm. The issue is that between Townville and the supplier company there is a contract and between “guardian angel” and his/her employer. Breach or end of contract on the former will definitely have an effect on the contract on the latter. On the other end of the spectrum, it was noted on the situation above that disclosure is made even before the discloser’s name was revealed, opposing sec. (c) of 1317AA. Nonetheless, the disclosure is done in good faith while also recognizing the fact that the act of whistle blowing contravenes with the standards of the corporation s/he is working for. 

 There is the general requirement to protect the identity of the whistleblower or to take steps to ensure that the safety and welfare of the employee which may include administrative leave, relocation or personal security. While doing this, the employee will be advised to refer to the company’s employee arbitration policy so that controversies that could likely to arise will be addressed by the employer and the employee himself/herself. Also, the whistle blower should acquire knowledge on issues of entitlements to damages – all compensatory and special damages (Cendrowski, Martin and Petro, 2006). Other than that, whistleblower will be advised of other available remedies for him/her. To wit, the whistleblower would be advised that s/he remains the right to pose questions of conflict of interest among the company, its officers, directors, employees and shareholders.

In the event of retaliatory actions by the employer, the whistle blower would be advised that s/he is protected by the law since criminal penalties of fine or imprisonment of up to 10 years or both for retaliation against a whistleblower who provides truthful information before the ASIC and other authorities having jurisdiction such as this accounting firm. Any form of intentional retaliation is also prohibited including interference with the lawful employment or livelihood of the whistleblower.

Further, s/he would be also advised to file a complaint with the department of labor within 90 days from where the action was undertaken (Cendrowski, Martin and Petro, 2006). Through this, the employee would be reinstated on his/her employment, awarded back pay with interest and awarded special damages especially when there is a reasonable cause to believe that adverse actions had taken place. With this said, the whistle blower will be also advised to document any events following the whistle blowing that concerns his/her employment. This could be regarded as evidence which could demonstrate the occurrence of retaliation notwithstanding the protected activity.      

References

Bragg, S M 2002, Accounting reference desktop, John Wiley and Sons, New York.

Cendrowski, H, Martin, J P & Petro, L W 2006, The Handbook of Fraud Deterrence, John Wiley and Sons, New York.

Hutchison, N C, Manley, S, Federwisch, M, Harris, G, Hitz, D, Kleiman, S & O’Malley, S 1999, Logical  vs. Physical File System Backup, Proceedings of the 3rd Symposium on Operating Systems Design and Implementation, New Orleans, Louisiana.

Laro, D & Pratt, S 2005, Business Valuation and Taxes: Procedures, Law and Perspective, John Wiley and Sons

Manning, G 2005, Financial Investigation and Forensic Accounting, CRC Press

Moorman, J & Schaffer, G 2007, ‘Introduction to E-Discovery, in D R Carmichael, R Whittington & L Graham, Accountant’s handbook, 48-1 – 48-15, John Wiley and Sons, New York.

Pagano, W & Buckhoff, T 2005, Expert Witnessing in Forensic Accounting, RT Edwards, Inc.

Sheetz, M 2007, Computer Forensics: An Essential Guide for Accountants, Lawyers and Managers, John Wiley and Sons

Singleton, T, Singleton, A, Bologna, J & Lindquist, R 2006, Fraud Auditing and Forensic Accounting, John Wiley and Sons

Silverstone, H & Sheetz, M 2007, Forensic Accounting and Fraud Investigation for Non-Experts, Wiley-IEEE

Zeph, T & Mostek, M 2003, Expert Witnessing in Forensic Accounting: A Handbook for Lawyers and Accountants Expert Witnessing, CRC Press

International Business Environment: Assessment Using Five Forces Analysis

Introduction

"Bribery and corruption is a way of life in many countries. These practices affect the way international business is regularly conducted. However, in most of these countries, it is illegal to offer or receive bribes or engage in corrupt practices. Yet corrupt practices are a part of the culture of doing businesses. Unless companies conform to such practices, in many cases, international business cannot be transacted."

This quote speaks its overview on the politics and how it can affect the international relationship and transaction of an organization. The impact of the politics in one country might indicate threats in the profitability or stability of the country. The acts of bribery and corruption do not only reflect on the attitudes of politicians that running an office but also on the higher personnel in the management. For most of the times, the illegal actions of people are the result of their negligence in terms of monitoring and handling necessary transactions.   

The aim of the paper is to investigate the international business environment in the existence of bribery and corruption in the system. In order to appropriately investigate the modern approach in the international business environment, there are objectives that need to be considered. First is to address the environment when it comes in international business as well as discussing the opportunities and challenges that can be faced in the management. Second is to recognize the extent of bribery and corruption and the associated impacts that it can produce for the organization. Third is to identify the reasons on why do people turn on bribery and corruption. And fourth is to address the solutions and other recommendations that have the potential in resolving the bribery and corruption in the management.

Competing in the International Marketplace

International business fully investigated the foreign country before they pursued their expansion plan. The idea of international business does not describe the global trend in making business outside the countries but instead, using the globalization in a more significant business practice. The exploration of the business in creating business can be due to the existence of the international trade that exists among the borders. Because of the relationship promoted by the international trade such as partnerships and allies, the tensions among nations are eased and their respective economies can boost up. In the developing countries, the possible result in their relationship is to promote the standard of living and the quality of life. However, in the situation of a most developed country is to realize a strong the stable economy. All of the nations concerns in participating in the international trade affects the different organizations and therefore use this very same relationship in establishing businesses across the other countries. It is expected that aside from the profitability, the business will also engage in contributing in the country by increasing its potentials (Gitman & McDaniel, 2008).

By participating in the international business, the organizations can gain the competitive advantage. And by strengthening the competitive advantage, the country realizes the comparative advantage wherein each country holds and specialize the certain good. Part of the advantages is to produce the product readily and cheaply among the other nations. With the means of international businesses, the expertise of the country can be widely recognized. However, before entering in the commerce of nations, the businesses might recognize and provide timely solutions on the three major barriers in international business environment known as the natural barriers. These barriers are identified to be the distance and the language factor, tariff barriers such as the taxes on the process of importation, and non-tariff barriers which include import quotas, embargoes, national regulations, and exchange controls.

Bribery and Corruption

Bribery according to the law is a form of corruption that can be direct or indirect according to the provisions of compensation in favor of the employee of an organization. In return, the government employee acts in a manner advantageous to the company or refrains from acting to the company’s disadvantage. Enterprises use bribery to obtain or retain business, receive patronage, or obtain an unwarranted advantage over other businesses. In business ethics, part of the responsibility of the entire organization and their commitment that is enclosed in the core values and principles. The business ethics is also a guideline that the business and their leaders can use in generating sound decisions. This is because the business ethics comprised the standards articulated in law and regulations, internal policy, and procedures. Being honest, working with integrity, respect, and fairness, and aligned according to the principles are the most perceived actions of the organization towards their employees and customers in terms of product quality, health, safety, and efficiency.

There are many issues that included in the business ethics coming from the practical to the philosophical views of the organization until to the relationship of the organization with their customers and employees. The organization should keep the welfare of the community and committed to the environment and nourishing the societal values (USDEC, 2004). Enhancing integrity in business transactions and reducing bribery will help the entire organization overcome the part of development problem. Through the specific measures there is a promotion on transparency, accountability and ethics and to effectively deter bribery in business transactions are feasible ways to improve the attractiveness (Wehrlé, 2004).  The employee satisfaction means answering the needs of the person and as an employee, the organization should build different strategies. Commitment, on the other hand, of the employees is the effort of the employees to have controls wherein the entire organization has an influence in their job. The importance of the job design and job involvement can also increase the job satisfaction and performance because when the employee is fits his educational background on the nature of his work; there is a significant result on the process of performing that specific job (Baker, 2001).

On the other hand, the corruption can be run particularly in the government. Corruption, like bribery is a cunning action of such individuals in which they distort the decisions to make the result favorable in their needs (The Economist, 2006). For an instance, the project manager wants to gain 10% commission in the proposed project. Since the companies opens the bid for the contractors, sub-contractors and other service providers, the project manager usually consults these companies and in order to be chose in the bidding, the project manager makes a demand to fix the deal in an instant. Usually this move is done without consulting the company’s performance portfolio. This is where the decisions are distorted. If there is a continuous corruption within the organization, there can be depletion in the financial health. The transition of the economies highly affects the outcome of the corruption. The confusion within the organization might exist and can increase the financial crises that might exist in the economy. Another is, it can erode the public confidence in political institutions and leads to contempt for the rule of law. It also distorts the allocation of resources, increases the spending, and undermines the competition (OECD, 2000).

Generally, the corruption affects the investment, growth, and development. Furthermore, it oppresses the poor that pressures the financial market and seeks the international fight against the corruption. In international business environment, both bribery and corruption are highly possible to exist because of the easy way it offers particularly in gaining competitive advantage. Bribery and corruption affects the international business directly especially when it is regularly conducted and the management is lacking of clues to implement the investigation of ethical behaviors among its officers. Although it is illegal to offer or receive bribes or be part of the corruption activities, it appears that these illegal actions have been part of the culture of doing businesses.

Causes of Bribery and Corruption

There are personal motivations that lead to bribery is first to gain advantage over the other. For example, the company might pay lower taxes to get the contract thus offering the bribes to avoid fine or penalty. Others seek bribes in order to stop arguing against the other party; to gain the “insurance” in their positions; to provide quick funds with their own personal agendas; to maintain their standard of living although they are experiencing financial commitments; to justify the unfair management; to gather alliances within the organization and seeking higher status that anybody can admire him because of the outwitting authority. Meanwhile, the causes of corruption are clearly about the opportunity that the individual saw. Second, because of the opportunity, there is a little chance of getting caught that arrives of the organization’s lack of transparency and weak enforcement of organizational ethics. Third are the incentives that the persons involved can gain. And fourth are the attitudes or circumstances that make the average people disregard the law (World Bank Org., 2001).

In the organization, there are largely unintended human problems which arise when organizations are structured and run in a manner strictly following the classical and bureaucratic principles. The problems discussed centered on such structural characteristics as specialization, centralization, job standardization, and formulization. The recent theories in organizations appeared and been applied in the international businesses. In general view, the problem arises because of the lack of capacity of the nation in demonstrating the ethical behaviors. This means that if the country cannot emphasize the strategies in defeating the increasing number of corporate issues, many organizations and people will suffer because of the illicit actions of someone in order to fulfill their interests.

One of the primary reasons in why do bribery and corruption exists is the given fact that it is already part of the business culture. Therefore, if the organization did not practice the bribery and corruption and other associated activities, the international business cannot be transacted. The problem in the government adds to the dilemma in managing business in international setting. The standards of the government and companies to use the legal basis for ethical behavior are weak which makes the illegal activities possible. In addition, the laws vary between nations and if the company did not provide in-depth research and analysis, the degree of bribery and corruption manifests. The research and analysis is important in order to measure the moral values that are part of every culture which holds the legal and ethical practices of the foreign country. In this way, the business starting in international setting can be prepared in facing such difficulties.     

Apparently, the difficulty in enforcing the laws against the bribery and corruption is a bad news for the international firms (Financial Times, 2007). In tracing the actions of the companies in expansion, the merging and acquisition strategies have more potential towards the actions of bribery. The activities takes place because of the reason that the business needs to find a business that have a market share in the target foreign land; and to gain the advantage in easy way, one party will make an agreement that will usually end in either bribe or corruption.

What’s within the International Business?

Although the offering and receiving bribes and/or engaging in the corruption practices are illegal and punishable by law once proven, still it is present no matter how much control the government or the internal management implemented. As we trace to the existence of the bribery and corruption among the international businesses, it appeared that in many cases, the transactions of the most of the large companies are impossible without offering bribes. In return, those bribes received by the other party are considered as a form of corruption.

In the international business environment, the expansion project of the organization seems to be lacking of closed monitoring. For an instance, the market research done by the organization is not strong enough. The chances of an organization to be engaged in the illegal activities are very high. Using the Five Forces Analysis, there is a possibility that the international organization be involved in the bribery and corruption.

Competitive Force 1: Rivalry among Existing Firms

In general, the rivalry in the foreign country is high particularly in two primary reasons: first there are many companies that offers the same services or products within the same industry, and second which is also related in the first reason is that the market is saturated because of the large number of organization fighting over the competitive advantage in the market. In order to gain the advantage in the competition, the channels of distribution should be strong as well as the strategies. For an instance, the firm might place an order in one site wherein the billboard of the organization is the only material that the people may find. Or, the organization may increase the number of its distributors by offering higher bids to the distributors (wholesaler, retailers, agents, etc.) to ensure that the products are promoted and within the consumers’ reach.

Competitive Force 2: Threat of New Entrants

Because of the large economies of scale and the intensity of the performance within the industry, the new entrants may have difficulty in establishing the distribution channels because of the competing large companies (Gilliam, et al., 2005). The companies might pressure the government to impose policies such as increase in the duties and taxes. The role of government in the country and any parts of the world significantly plays in the resource allocation within the market. Part of the country’s economic development is the intervention of the government in terms of resource allocation which appears to be very controversial. And thus, in every type of economic system, the government places control over the allocation of resources. With the nature of the government being authoritarian, their decisions established that pubic firms should participate in the economic activities. However, governments primarily relied on private firms for the success of the industrial policies and appear to be in favor among the private firms (Allemik, 2009).

Competitive Force 3: Threat of Substitute Products

Obviously, because of many players in the same industry, there is a high competitive market and consumers can easily find substitutes (Gilliam, et al., 2005). Therefore, the companies are looking for the most effective way in gathering competitive advantage. In the organization haven’t establish the brand image yet, they may find difficulty in gaining the market share. Other than offering briberies among the suppliers, there is also an indication for the breach of confidence which can be associated with the corruption. For example, because of the poor performance of the international organization, the financial health of the organization can be affected. In order to gain the trust of the investors, the information is not publicly addressed. The information is corrupted as well as the money of the investors. In other form, a manager might sell the information to other companies in order to gain a sum of money (Cabrillo, 2007). This is an ethical issue that the organization should face and if not given proper attention, might lead to the firm’s downfall.

Competitive Force 4: Bargaining Power of Buyers

Due to the enormous contribution of the organization in the same industry and the impact they created in the market such as delivering the quality products, the firms who have the appeal in the market can have the power over the buyers. However, if there is a great numbers of competitors, the influence of firm in the market is somewhat decreased, which provided an opportunity to other competitors in exercising their business operations. The bribery might exist in the form of pirating the other organization’s best employee. For example, an engineering firm has a great rival and the impact of its rival’s “core team” plays a significant role in the organization. Due to the decreasing market share, the desperate measure of the organization is to pirate the “core team” by offering higher positions, incentives, higher compensation, and other good-to-the-ear offerings, which are clearly a form of bribery. They can also influence the buyers to buy their products through distorting the information and over-emphasized marketing which might affect the performance of other organizations through comparing one product to another.    

Competitive Force 5: Bargaining Power of Suppliers

The suppliers can be the most important part of the supply chain (Gilliam, et al., 2005). The companies mostly fight over the suppliers and in order to win the favor of the suppliers, offering bribes exists to close the transaction and have a control in the supply chain. In addition, it adds to their competitiveness to be the trendsetter in the market if the suppliers will be loyal in their relationship. As a result, the industry became lively than before and enough to encourage the high turnover and surpassing the other industry rivals.  

The increasing problems in the bribery and corruption exist in the international organizations because of their reason to survive in a close competitive world. The organizations promoted this kind of activity because of the competitive advantage that they might gain and the fact that it is easier than the traditional way.

Conclusion

The problems of bribery and corruption that exist in the nations and can affect the international organization. Most of the actions of the international business include the illegal actions that lead in the bribery and corruption in order to gain advantage in the market or gain the interest from the organization. The lack of the control in the organization as well as monitoring increases the degree of the illegal activities. The responsibility of the people should be emphasized because the officers are the one who tends to commits organizational felonies.

On the other hand, there are recommendations that can be used in order to monitor and establish the functions of the people. The theories of bureaucracy and theory of configuration are based on the classical teaching of Max Weber and Henry Mitzberg which the modern organizations pay a little attention. However, many criticisms attacked the bureaucracy and its use as a model for the organizations because the researchers identified that its applications in the organizations may produce dysfunctions or unintended negative results, which rendered the organizations inefficient and ineffective.

References:

Allemik, K.A., (2009) Industrial Development in East Asia – A Comparative Look at Japan, Korea, Taiwan, and Singapore, World Scientific Publishing Co. [Online] Available at: http://www.worldscibooks.com/economics/6935.html [Accessed 21 January 2011]

 Baker, G., (2001) Motivation through Needs, Job Design, and Satisfaction, The McGraw-Hill. [Online] Available at: http://www.unf.edu/~gbaker/Man4240/Chapt007a.PDF [Accessed 17 January 2011].

Cabrillo, F., (2007) Law and Economic Development: Common Law versus Civil Law [Online] Available at: http://www.isnie.org/assets/files/papers2007/cabrillo.pdf [Accessed 21 January 2011]

Financial Times (2007) Corporate Corruption: US Steps up Overseas Bribery Crackdown

Gilliam, P., Fanuzzi, M., Martinez, Y., Stratil, B., & Vickers, J., (2005) Intel Group Equity Valuation [Online] Available at: http://www.2dix.com/ [Accessed 21 January 2011]

Gitman, L.J., & McDaniel, J.W., (2008) The Future of Business: The Essentials, 4th Edition. South-Western Cengage Learning: Mason, USA. 

OECD, (2000) The Fight Against Bribery and Corruption [Online] Available at: http://www.oecd.org/dataoecd/3/6/1918235.pdf [Accessed 20 January 2011].

Rodriguez, R.A., & Echanis, E.S., (1993) Fundamentals of Management, Diwata Publishing: Philippines.

The Economist (2006) The Etiquette of Bribery, How to Grease a Palm, 23December vol 381

USDEC (2004) Business Ethics, US Department of Commerce: International Trade Administration [Online] Available at: http://www.trade.gov/goodgovernance/adobe/bem_introduction/glossary.pdf [Accessed 17 January 2011].

Wehrlé, F., (2004) Business Ethics and Anti-Bribery Policies in Selected Middle East and North African Countries [Online] Available at: http://www.oecd.org/dataoecd/56/63/36086689.pdf [Accessed 17 January 2011]

World Bank Org., (2001) Youth for Good Governance: Causes of Corruption [Online] Available at: http://info.worldbank.org/etools/docs/library/35971/mod04.pdf [Accessed 20 January 2011].