International human resource management 6e IHRMcases

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International Human Resource Management

Managing people in a multinational context

International Human Resource Management

Managing people in a multinational context

v IHRM Case 1 – Spanning the Globe 3

Pre-departure activities

1 ‘Country briefings’, outsourced to a consulting firm in San Antonio that had experience dealing with the countries in which Tex-Mark operated Tex-Mark was prepared to pay for four sessions each lasting one hour

2 ‘Reading Assignments’ Three to four books (depending on region of assignment) on national or regional culture and/or doing business in the focal region Accompanying spouses/partners had access to a similar library.‘Interviews and conversations’ with Tex-Mark employees with country experiences

3 ‘Language courses’ Attendance at elective ‘survival level’ language classes These courses last from eight to twelve weeks, with three course meetings a week Tex-Mark will pay for spouses/partners

as well

Tex-Mark Corporation

Exhibit A

In-country training and development

Upon arrival, Tex-Mark staff in the local operation will assist the accompanying spouse/partner with job search activities They will assist with finding children acceptable schooling situations Where

possible, Tex-Mark staff will endeavour to provide a social support network

Repatriation

Upon return all expatriates are required to go through a debriefing and career counselling

session with HR staff This should be held within two months of the person’s re-entry to the homelocation

v IHRM Case 1 – Spanning the Globe 4

In the role of Eric

1 Summarize your thoughts on the problems at hand, alternative solutions and your strategy on how to proceed at the forthcoming meeting.

2 How will your proposal solve the problems you have defined?

3 How can you defend your solution from budgetary concerns? In what way is your approach both a solution to the problems of

expatriates at Tex-Mark and a good economic investment?

Step back out of the role and answer the following

1 Does Eric’s personal background assist in his assessment of the problems he faces?

2 Would you have approached this situation differently? If so, what benefits would your different approach provide for Tex-Mark?

Case 1 Activity

International Human Resource Management

Managing people in a multinational context

v IHRM Case 2 – Quality compliance at the Hawthorne Arms 6

Alistair Mackay’s short list of possible candidates

Exhibit A

‘First candidate Marie Erten-Loiseau Born in Prague, her family moved to Toulon when Marie was twelveyears old Brought up in France, she was educated as an aeronautical engineer in France and Germany

Marie worked for Trianon for 13 years, in two divisions within France and Germany with increasing levels

of project responsibility Her leadership of two projects over the last three years in Lodz, Poland, and twosites in the Czech Republic has been marked by remarkable success Married, her husband is semi-retired.They have one child in university

Second candidate Janos Gabor Born in Gyor, Hungary, Janos was educated at University of Pecs, Hungary

He has a good background in the production of cathode ray tube and display systems technologies,

albeit from the Central European perspective He has worked at Trianon for nearly four years, and has justbeen transferred into the cathode ray tube division as a Senior Engineer His family is reportedly very wellconnected with national government officials, particularly the old, ex-party members of multiple ministerialbureaucracies Janos is single

Third candidate Sinead Marrinan-McGuire, a production engineer on loan to Trianon’s London office forjoint venture analyzes and ‘due diligence’ reviews on technical and legal grounds She has spent three

years in the R&D development team in Dublin and London, working on the very technologies to be applied

in this Hungarian joint venture project Alistair met and talked with her today in Limerick and was

very impressed with her understanding of corporate level concerns and strategic issues Most of her careerhas been in Ireland and around London, with only short, tactical trips to France Married, her husband

is a solicitor in Dublin They have three children, ages 7, 9 and 13

v IHRM Case 2 – Quality compliance at the Hawthorn Arms 7

1 Consider the three candidates in Exhibit A If forced to make a decision tomorrow, which candidate should Alistair choose for the job? What major factors should determine his choice?

2 We are told nothing of the process that Trianon uses to recruit candidates for this level of final selection Given what you know about the firm from the case, outline a general recruitment and selection process for Trianon Describe how your proposed

process fits with ‘best’ selection practices as well as the

strategic needs of this company

3 Should HR staff be involved in strategic decisions relating to

international business operations such as finalizing a joint

venture agreement?

Case 2 Activity

International Human Resource Management

Managing people in a multinational context

v IHRM Case 3 – Jaguar or bluebird? (A) 9

Discuss whether Mark should stay overseas or return home after his expatriate asssignment.

Case 3 Activity

International Human Resource Management

Managing people in a multinational context

v IHRM Case 4 – Jaguar or bluebird? (B) 11

Discuss Mark’s realizations and his options.

Case 4 Activity

International Human Resource Management

Managing people in a multinational context

v IHRM Case 5 – Wolfgang’s balancing act 13

Table 1 Key data on the Healthcare Group

v IHRM Case 5 – Wolfgang’s balancing act 14

Table 2 Net sales by region of the Healthcare Group

v IHRM Case 5 – Wolfgang’s balancing act 15

Table 3 Employees by region of the Healthcare Group in 2005

v IHRM Case 5 – Wolfgang’s balancing act 16

Table 4 Personnel costs of the Healthcare Group

v IHRM Case 5 – Wolfgang’s balancing act 17

Table 5 HR policies of the Healthcare Group

v IHRM Case 5 – Wolfgang’s balancing act 20

Wolfgang reconsiders the degree of global standardization and local responsiveness of the current global compensation system.

Question block A:

Standardization vs local responsiveness of compensation systems

1 Should he move some of the existing pay elements across the T account in Figure 2, shifting them from globally

standardized to locally customized?

2 Should he add or delete some existing practices from the

T account?

3 Should he change the weights or emphases (percentages)

of existing elements of the pay system?

v IHRM Case 5 – Wolfgang’s balancing act 21

If Healthcare’s job-based pay dominated the existing system, while other such

as competency-based compensation have not been pursued, then what

advantages might a competency based system have for Healthcare?

Question block B:

job-based vs competency-based compensation

1 How can the firm communicate to the geographically dispersed executives the need to acquire and maintain those management competencies that have been defined in the competency set (in folder three)?

2 Would a purely competency-based pay system be somehow more flexible?

3 But then again, what about the standardization Healthcare has just achieved

through standardizing the job descriptions across units?

4 How would he take these three competency categories and use them to

develop a series of measurable, behavioral indicators to be used to assess

an executive’s contributions to Healthcare? In what sense should these new

behavioral indicators be customized to local (regional) contexts? How can Wolfgang go about this process to ensure a balance of organizational

standardization and local relevance?

International Human Resource Management

Managing people in a multinational context

v 26

Figure 4

IHRM Case 6 – Strategic forecasts and staffing formulation

Planning Chart

v IHRM Case 6 – Strategic forecasts and staffing formulation 27

Taking the role of HR manager at Bosch, address these issues:

1 Analyze the company and country-specific situation by

using the steps outlined in Figure 3.

2 Plan the number and nature of short/medium-term (2007– 2010) as well as long-term (2011–2014) staffing

requirements on the basis of the figures in the chart on

facing page and the described situation Fill in your figures

in the chart (Figure 4).

3 Finally, prepare an action plan describing how you will

meet managerial staffing targets Look especially at

information provided in the ‘employee development’ and

‘talent management’ sections of the case for activities and timetables Write down your action plan.

Case 6 Activity

International Human Resource Management

Managing people in a multinational context

v 30

Appendix B

IHRM Case 7 – Norge Electronics (Portugal), SA

Organization chart, Norge Electronics (Portugal), SA

v IHRM Case 7 – Norge Electronics (Portugal), SA 31

Climate study factors

Appendix C

SAT – JOB SATISFACTION

The degree to which employees are satisfied with their current jobs.

CLAR – CLARITY OF MISSION AND OBJECTIVES

The degree to which employees understand and accept the organization’s mission and objectives.

ESTRUT – STRUCTURE

The degree to which the organizational structure supports, rather than interferes

with, getting information, making decisions and getting the work done.

SIN – SYNERGY WITHIN THE ORGANIZATION

The degree to which people in different parts of the organization work together,

support each other and do not duplicate activities.

AMB – BUSINESS AMBITIOUSNESS

The degree to which the mission and objectives are perceived as lofty and

challenging.

ESTILO – MANAGEMENT STYLE

The degree to which managers’ styles are supportive of employees and helpful in

getting the work done.

v IHRM Case 7 – Norge Electronics (Portugal), SA 32

Climate study factors

Appendix C

REMUN – REMUNERATION

The degree to which remuneration is perceived as (a) internally equitable, (b)

competitive with other organizations, and (c) supportive of individual and team

performance.

IDENT – CORPORATE IDENTITY

The degree to which employees (a) perceive the organization as having a unique

identity and (b) accept and support the identity.

EMPOW – EMPOWERMENT OF EMPLOYEES

The degree to which employees feel empowered to take the actions and decisions they need to take in order to get the job done Also, the perception of how much the organization empowers, rather than controls, employees.

RH – HUMAN RESOURCE POLICIES

The degree to which human resource policies and practices are perceived as (a)

supportive of getting the work done, (b) appropriate to employee needs, and (c)

appropriate to prepare the organization for the future.

v 33

Appendix D

IHRM Case 7 – Norge Electronics (Portugal), SA

Preliminary results of the climate study

v 34

Appendix E

IHRM Case 7 – Norge Electronics (Portugal), SA

Norge Portugal Grades

v 35

Appendix F

IHRM Case 7 – Norge Electronics (Portugal), SA

Job evaluations, Norge Electronics (Portugal), SA

v IHRM Case 7 – Norge Electronics (Portugal), SA 36

Discuss João Silva’s actions to professionalize HR

management in the Portuguese subsidiary.

Case 7 Activity