MGMT 5949 Assessment Task 3: Capstone Case Analysis

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 Contents
1: Why and how Cirque localise HR practices to the host country context...................2

2: Selection process at Cirque and contribution of its staffing approach to

organisational success..........................................................................................................3

3: Discuss the training, development programs, and their help for employees at
Cirque....................................................................................................................................4

4: Discuss expansion into China and its cultural challenges............................................5

5: Cutting costs at Cirque while motivating performers..................................................6

6: References.........................................................................................................................7

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MGMT 5949 Assessment Task 3: Capstone Case Analysis

1: Why and how Cirque localise HR practices to the host country context.
Why localisation is needed: Cirque de Soleil is famous for its HRM strategy where it
localises and tries to adapt to the host country's situations so that all the legal regulations are
followed. The organisational and institutional context of the host country always impacts
HRM practises of a company and Cirque is no exception. Political, economic, legislative, and
other institutions influence the company while organisations like unions and councils too
have an impact on its HRM practises*. Hence, a decentralised policy of HRM at Cirque
ensures that flexibility exists, and the company can follow the local conditions, laws, and
regulations as needed for a hassle-free operation.
Localization also ensures minimum friction with the political and legislative institutions of
the country; hence business operation is very smooth. It also ensures organisational context is
balanced as workers' unions and councils do not challenge the company operations on the
grounds of flouting working conditions or employee pay and benefits.
How the localisation is achieved:
a) Customization of HRM practices to host country: Based on the host country, HR
travelling with the company troop ensures the following of laws and regulations
regarding compensation, working hours, benefits, and leave such as that for maternity
and sickness. The regulated market economies in Europe compared to the liberal free-
market economies of the Anglo-Saxon world show the difference that exists in laws
and regulations*.
b) Cultural sensitivity and diversity: Cirque follows a geocentric model to hire the best
person for the job irrespective of nationality or any other factor. Therefore, cultural
sensitivity and basic language comprehension are necessary which was achieved
through language programmes and cultural sensitisation upon hiring. An example is
cultural sensitization and understanding of the behaviour of the Japanese crowd for
Cirque employees was done* so that they are not demotivated and unhappy due to the
stoic behaviour of the crowd over there, past a bad experience after the first tour.

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2: Selection process at Cirque and contribution of its staffing approach to
organisational success.
Of all the staffing models that form the EPRG i.e., Ethnocentric, Polycentric,
Regiocentric, and Geocentric*; Cirque follows the Geocentric model since it focuses on the
best quality artist irrespective of nationality or ethnicity. This approach gives priority to
quality over everything else and ensures merit is the selection criteria for a pool of people
covering the whole world.
Key selection criteria are Experience, Qualifications, Know-how, Personal qualities, and
Special requirements covered respectively by long years at the peak of their domain by
Olympic qualifiers and highly accomplished athletes. Special knowledge and know-how
criteria are judged by looking at their career performance and accomplishments.
Personal quality criteria for recruitment is fulfilled by hiring artist capable of performing
under stress and out of their comfort zone. Those who are creative, committed, responsible,
team players, and passionate possess the right personal qualities. This leads to hiring the best
candidate for the job and hence contributes to organisational success.

The selection process is extensive with a talent acquisition group as well as a casting agency
supporting the effort. Talent scouts browse various platforms and circus schools across many
countries to find the best artists. Resumes come in the form of artist videos showcasing talent
with auditioning and interviews lasting one full day where people who succeeded in
performing out of their comfort zone are considered. Background checks and medical testing
are also important to get only those people with the right attitude in the company. In case it's
difficult to approach certain artists due to different conditions, alternative methods are
selected to cause minimum disturbance to them while conveying the interest of the company
in the individual. The most important criterion for hiring is passion since slight crazy is good
for great accomplishments.

3: Discuss the training, development programs, and their help for employees at Cirque.

Once hired, artists undergo orientation and formal training lasting from a few weeks to four
months at the Cirque headquarters. People are trained not only on the artistic and acrobatic

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side but also on improving their facial emotions so that they can effectively play roles in
theatre. Safety and correct usage of equipment are also taught. Physiotherapists and
naturopaths support them at a facility that provides well-equipped rooms with all amenities
and enough personal space for a reasonable amount of time. The company focuses on the
creative transformation of its employees so that their artistic skills get refined. They were
already prepared mentally by the hiring managers and given creative freedom to develop their
own schedules and way of working. This enhanced their imagination and artistic skills,
intending they could click and become a contributing member of the company. Improvement
of basic language skills and understanding of cultural nuances of different countries was also
afforded to avoid situations like when artists misunderstood the stoic Japanese crowd as an
uninterested audience.
The company follows ‘systems model of training’* to a certain extent providing trainings
after organisation and task analysis but designed with a focus on the objectives. The
implementation and evaluation phase are again customised to suit the needs of the company.
It’s done in the form of various off the job and on job training with a feedback loop to
evaluate, learn, and transfer the knowledge.
Since artists are at the peak for a very short time, the company supports them in developing
career in different streams either inside or outside it. The implementation and evaluation
phase of ‘systems model of training’ is used in helping employees transcend to coaching,
administration, stage management, etc roles within the company and in case they want to go
to streams like MBA or other professional courses, monetary and career guidance support is
provided for that too. Overall, this helps employees in developing their career not only within
Cirque but outside it too.

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4: Discuss expansion into China and its cultural challenges.

In case Cirque goes ahead with the plan of expanding into China and hiring HCNs as
performers over there, it will lead to some cultural challenges. This is due to employees from
different cultural backgrounds analysed per Hofstede’s theory of cultural dimensions*:

a) Power distance: Since China is a society with high power differential between Those
in the pecking order, it will run contrary to the flat organisational structure in Cirque.
The collaborative decision making Isn't what HCNs in China are used to send me
expect clearly defined roles and expectations with authority figures for clarity and
guidance.
b) Individualism versus collectivism: The Chinese society is a collectivist society
where preference is given to the community over an individual to ensure harmony
exists in the group and loyalty is maintained. There will be a cultural challenge since
Cirque focuses on individualistic values like creative freedom and individualism
along with group cohesion. This will however be a minor challenge compared to
power distance.
c) Masculinity versus femininity: China tends to have masculine culture where
assertiveness, decision-making, competitiveness, and achievement are valued. This is
in slight contrast to the feminine culture at Cirque where cooperation and
collaboration are key for the group to perform consistently. This will again be a minor
challenge compared to power distance.
d) Uncertainty avoidance: The Chinese culture is focused on avoiding uncertainties
with clear directions, goals, and structure to achieve them. This contrasts with the
artistic nature at Cirque focused on spontaneity, innovation, and unpredictability since
cases like that of the Brazilian artist who got hurt in the shoulder leading to solo
performances can happen.
e) Long term orientation: Chinese culture focuses on long term while at Cirque it's
short term focussed being an entertainment company with an unpredictable and ever-
changing industry environment.
f) Indulgence versus restraint: China is a restrained society while at circuit is
indulgence with lots of freedom, individuality, openness, and a proclivity to challenge
the limits for devising an outstanding performance.

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5: Cutting costs at Cirque while motivating performers.

In the case of Cirque, it is the external environment factor of economic conditions* that is
affecting the reward or compensation system. The revenue generation has seen a decline and
hence this forces a compensation cut for the management while simultaneously ensuring the
performers stay motivated.

a) Focus on providing performance related pay (PRP) while giving up the base pay
system from the monetary reward plans. PRP is given based on past individual and
collective performance to ensure its repeat in the future*. It can include bonuses in
case of outstanding performances and success of the show or positive feedback from
the audience. The management is not directly the breadwinner like performers and
hence their pay structure should remain unaffected.
b) Profit sharing models can be provided to high performance managers and artists to
motivate them in repeating the success. The overall interests of the high-performance
employees will rise do you do it and a sense of ownership will develop leading to
higher motivation and feeling of responsibility to work together in forging better
financial growth chart for the company.
c) Global compensation is a high expenditure for the company and international assignee
compensation tends to be the biggest part of it*. Cirque should try to replace expats
with HCNs or train local talent to replace them. HQ compensation should be
controlled too to average out the costs.
d) If unavoidable, the expatriates should be compensated at the same level as the
workers from the host country that is at the ‘going rate approach’ or the ‘host country-
based approach’*.
e) Cirque can offer flexible compensation packages to incentivise performers to can
tailor their own compensation package to meet their needs. It can also provide career
development opportunities, recognition, and appreciation programmes to complement
the sole monetary part of the compensation package. This will help in both motivating
and lowering the costs.
f) Cost efficient trainings and collaboration programmes can be run to bring down
operational costs.

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6: References