Deck 4: Global Human Resource Management

Question 1

Objective
This exercise is designed to have students use the Internet to uncover mistakes that multinational corporations have made while managing their human resources around the world.
Instructions
Students should read the exercise below, conduct research on the Internet, prepare a one-page report, and then, in groups of three to four, discuss the findings with their colleagues in class.
Exercise
Parent (or headquarters) companies have experienced difficulties adjusting to hostnation management practices. Examples of blunders being made by American, Japanese, French, British, and Swedish firms have continued to make news for decades. For example, a Japanese company doing business in Indonesia hired primarily Bataks, members of an ethnic group with characteristics similar to the Japanese. Other Indonesians, however, resented this hiring practice, viewed it as discriminatory, and forced the company to change its policy.
As an assignment, students should use their favorite search engine on the Internet to collect examples of three blunders or problems that companies and organizations have encountered when addressing management practices in a host country and prepare a one-page summary on each of these examples for discussion with class colleagues.
Source: Adapted from Robert Konopaske and John M. Ivancevich (2004), "Global Labor Relations IQ," Global Manag e ment and Organizational Behavior (Boston: McGraw-Hill/Irwin), p. 413.

Answer 1

Not Answer

Question 2

How much do you know about Indian culture and working with Indian colleagues

Answer 2

There is a growing trend of onshoring. Due to the global expansion, many Indian companies has started hiring US based employees. These companies provide them training of cross culture or organisational culture in country I.
Working in Indian culture and with Indian colleagues would be challenging but a significant experience of life. As there are many differences in work-culture, practices and organisational culture. American employee has to make cross-cultures adjustments in India. If we compare the Hofstede culture dimensions of the US and India. Indian have more power distance than the United states.US is more about individualism but Indian colleagues believe in collectivism. There are differences in the Psychological and socio-cultural behaviour of Indian colleagues. There is a very low cost of living in India and there are language differences, food habits, national cultural diversity that would be the big challenges for an expatriate but on the other hand, Indian colleagues are very open and welcoming towards the expatriates. They are friendly, loyal and their decisions are influenced by their relationships.

Question 3

Assume that you've started to expand your company's operations into India and China. This is the first time that your company is "going international." Should the HR department recommend the company use an ethonocentric or polycentric staffing approach

Answer 3

Ethnocentric strategy is the strategy that focus on hiring the management of same nationality for offices in foreign countries as that of the parent company. Thus, a good example of an ethnocentric strategy of global HRM is a US company that hires an American to run their Brazilian operations.
Polycentric staffing policy is the policy where the nationals of host country are recruited to manage subsidiary in their own country and nationals of parent country have key roles and responsibilities at corporate headquarters.
When a company expand its operation to foreign countries like India and China, the company should use ethnocentric staffing approach. The highest position will be filled by the expatriates from the home country. This approach ensures that the parent company's procedure and operations require control and management for the company to profit. Employees from the parent company will have knowledge about company policies and procedures and make sure that the company guidelines are followed.
Ethnocentric staffing ensures that the company values are transferred to foreign operation and knows how company give importance to ethics, productivity and other business parameters.

Question 4

Assume that you have an interview with Tata. How would you go about researching the firm before your interview

Question 5

In addition to having good technical skills, what other skills should an expatriate have in order to be successful in an international assignment

Question 6

What types of information should be included in cross-cultural training for expatriates Should spouses and family members be included in the training

Question 7

What is culture shock When does it occur What can be done to reduce its negative effects

Question 8

Hofstede reports that the United States scored very high on the individualism dimension. Do you agree that Americans are highly individualistic Provide examples.

Question 9

Discuss the advantages and disadvantages of using PCNs and HCNs for filling key managerial and technical positions in an international organization.

Question 10

Why are so many multinational companies using short-term international assignments (less than one year in length) Which would you prefer, a long- or short-term international assignment

Question 11

In your opinion, to what extent do laws like the Foreign Corrupt Practices Act deter or eliminate corruption and bribery in international business What can the HR department do to prevent employees from unethical behaviors

Question 12

What are the Sullivan Principles How have they helped organizations understand the ethical issues they face when conducting business in foreign cultures

Question 13

A One-Year Assignment to China: Go Solo or Bring the Family
Assume that Nick Connors, a fictitious HR manager, was just added to a 10-person international team of McDonald's employees who have been tasked with opening up several new restaurants throughout China during the next 12 months. Nick was chosen because he's an exceptionally effective HR professional who has worked for the company for 10 years and has experience with starting up McDonald's restaurants in the United States. McDonald's, with worldwide sales revenue of about $24 billion in 2010, wants to take advantage of the fast-growing Chinese fast-food market. Unfortunately, Nick and his team are quick to discover that there is stiff competition from other large American fast-food chains that already have a large presence in China. For example, Kentucky Fried Chicken and Pizza Hut (both owned by Yum Brands) have enjoyed years of growth and profitability in this market of 1.3 billion people. As of 2011, Kentucky Fried Chicken was the largest restaurant chain in China with 3,200 outlets located in 700 cities, while Pizza Hut had 500 outlets in 130 cities. How does McDonald's compare As of 2011, McDonald's had approximately 1,300 stores located in 150 cities throughout China and reported plans to open 700 more by 2013. By that same year, the company plans to remodel 80 percent of its existing stores in the country. Nick and his team are very excited about the opportunity to help McDonald's expand its world-famous brand throughout this high-potential Chinese market.
Before leaving on his one-year international assignment that will be based out of Beijing, Nick and his family had several discussions about whether they should accompany him. While Nick and his family had taken some international vacations to Cancun, Montreal, London, and some other European cities, none of them had ever stepped foot in China or any other Asian country for that matter. Lack of experience in China was not the only issue. Nick's spouse, Ella, had just finished her law degree and was about to begin her legal career (and begin paying off her student loans) by working for a local law firm for which she clerked the previous summer. Nick and Ella have two children, Jenny who is 15 and starting her sophomore year in high school, and Luke who is 10 and will be entering the 5th grade.
Nick explained to Ella and the kids that the company would pay for them to accompany Nick on the one-year assignment, but he pointed out that there were some other issues to consider. Nick was told that he and his start-up team would have to travel to multiple cities while in China and that he would be required to spend up to five days or more a week on-site making sure that all of the HRM activities such as recruitment, selection, initial training, and payroll would get done on time according to the company's standards and guidelines. This would mean that Ella, Jenny, and Luke would be on their own in Beijing for most of time the family was living in China. Jenny said she would go if the assignment meant a lot to her father's career; but in a quiet moment Jenny told Ella that she would be upset if she missed getting on the JV soccer team this year (a goal for which she had been training hard). Also, her inner circle of friends didn't want her to go because she was a very popular member of the group and her friends were supportive but not really excited about her "taking off for a year." As for Luke, he was a little nervous about the idea of going to the other side of the world where everything and everyone would be different, but he had an adventurous attitude and usually adjusted to new places and people reasonably well (the family had moved a few times across three states over the years). These reservations aside, both Nick and Ella felt that this opportunity could be really good for Nick's career and that the kids would adjust reasonably well after getting settled and making some friends in Beijing. As for Ella's plan to start her career at the law firm, she had to give that some thought.
As for assistance, assume that McDonald's offers Nick a generous expatriate relocation package that includes predeparture language and cross-cultural training for him as well as Ella and kids, a foreign service premium worth about 30 percent of his base salary, a completion bonus after he successfully finished his one-year assignment, an apartment hunting trip for Ella and him, assistance with tax preparation, subsidized housing while overseas, full medical care, and subsidized tuition for his children at the international school in Beijing. Also assume that McDonald's offers to help find Nick an HRM position that takes advantage of his newly acquired international experience after his assignment is complete and he returns to the United States. If Nick should go by himself, the company will pay for him to fly back to the United States on two different occasions for one week at a time.
In a quiet moment, Nick and Ella sit down over coffee to decide whether Nick should go alone or whether the whole family should go to China.
How challenging do you think this assignment would be To what degree will Nick's start-up experience in the United States help him be effective starting McDonald's restaurants in China

Question 14

A One-Year Assignment to China: Go Solo or Bring the Family
Assume that Nick Connors, a fictitious HR manager, was just added to a 10-person international team of McDonald's employees who have been tasked with opening up several new restaurants throughout China during the next 12 months. Nick was chosen because he's an exceptionally effective HR professional who has worked for the company for 10 years and has experience with starting up McDonald's restaurants in the United States. McDonald's, with worldwide sales revenue of about $24 billion in 2010, wants to take advantage of the fast-growing Chinese fast-food market. Unfortunately, Nick and his team are quick to discover that there is stiff competition from other large American fast-food chains that already have a large presence in China. For example, Kentucky Fried Chicken and Pizza Hut (both owned by Yum Brands) have enjoyed years of growth and profitability in this market of 1.3 billion people. As of 2011, Kentucky Fried Chicken was the largest restaurant chain in China with 3,200 outlets located in 700 cities, while Pizza Hut had 500 outlets in 130 cities. How does McDonald's compare As of 2011, McDonald's had approximately 1,300 stores located in 150 cities throughout China and reported plans to open 700 more by 2013. By that same year, the company plans to remodel 80 percent of its existing stores in the country. Nick and his team are very excited about the opportunity to help McDonald's expand its world-famous brand throughout this high-potential Chinese market.
Before leaving on his one-year international assignment that will be based out of Beijing, Nick and his family had several discussions about whether they should accompany him. While Nick and his family had taken some international vacations to Cancun, Montreal, London, and some other European cities, none of them had ever stepped foot in China or any other Asian country for that matter. Lack of experience in China was not the only issue. Nick's spouse, Ella, had just finished her law degree and was about to begin her legal career (and begin paying off her student loans) by working for a local law firm for which she clerked the previous summer. Nick and Ella have two children, Jenny who is 15 and starting her sophomore year in high school, and Luke who is 10 and will be entering the 5th grade.
Nick explained to Ella and the kids that the company would pay for them to accompany Nick on the one-year assignment, but he pointed out that there were some other issues to consider. Nick was told that he and his start-up team would have to travel to multiple cities while in China and that he would be required to spend up to five days or more a week on-site making sure that all of the HRM activities such as recruitment, selection, initial training, and payroll would get done on time according to the company's standards and guidelines. This would mean that Ella, Jenny, and Luke would be on their own in Beijing for most of time the family was living in China. Jenny said she would go if the assignment meant a lot to her father's career; but in a quiet moment Jenny told Ella that she would be upset if she missed getting on the JV soccer team this year (a goal for which she had been training hard). Also, her inner circle of friends didn't want her to go because she was a very popular member of the group and her friends were supportive but not really excited about her "taking off for a year." As for Luke, he was a little nervous about the idea of going to the other side of the world where everything and everyone would be different, but he had an adventurous attitude and usually adjusted to new places and people reasonably well (the family had moved a few times across three states over the years). These reservations aside, both Nick and Ella felt that this opportunity could be really good for Nick's career and that the kids would adjust reasonably well after getting settled and making some friends in Beijing. As for Ella's plan to start her career at the law firm, she had to give that some thought.
As for assistance, assume that McDonald's offers Nick a generous expatriate relocation package that includes predeparture language and cross-cultural training for him as well as Ella and kids, a foreign service premium worth about 30 percent of his base salary, a completion bonus after he successfully finished his one-year assignment, an apartment hunting trip for Ella and him, assistance with tax preparation, subsidized housing while overseas, full medical care, and subsidized tuition for his children at the international school in Beijing. Also assume that McDonald's offers to help find Nick an HRM position that takes advantage of his newly acquired international experience after his assignment is complete and he returns to the United States. If Nick should go by himself, the company will pay for him to fly back to the United States on two different occasions for one week at a time.
In a quiet moment, Nick and Ella sit down over coffee to decide whether Nick should go alone or whether the whole family should go to China.
How can language and cross-cultural training help Nick and his family adjust to Chinese culture

Question 15

A One-Year Assignment to China: Go Solo or Bring the Family
Assume that Nick Connors, a fictitious HR manager, was just added to a 10-person international team of McDonald's employees who have been tasked with opening up several new restaurants throughout China during the next 12 months. Nick was chosen because he's an exceptionally effective HR professional who has worked for the company for 10 years and has experience with starting up McDonald's restaurants in the United States. McDonald's, with worldwide sales revenue of about $24 billion in 2010, wants to take advantage of the fast-growing Chinese fast-food market. Unfortunately, Nick and his team are quick to discover that there is stiff competition from other large American fast-food chains that already have a large presence in China. For example, Kentucky Fried Chicken and Pizza Hut (both owned by Yum Brands) have enjoyed years of growth and profitability in this market of 1.3 billion people. As of 2011, Kentucky Fried Chicken was the largest restaurant chain in China with 3,200 outlets located in 700 cities, while Pizza Hut had 500 outlets in 130 cities. How does McDonald's compare As of 2011, McDonald's had approximately 1,300 stores located in 150 cities throughout China and reported plans to open 700 more by 2013. By that same year, the company plans to remodel 80 percent of its existing stores in the country. Nick and his team are very excited about the opportunity to help McDonald's expand its world-famous brand throughout this high-potential Chinese market.
Before leaving on his one-year international assignment that will be based out of Beijing, Nick and his family had several discussions about whether they should accompany him. While Nick and his family had taken some international vacations to Cancun, Montreal, London, and some other European cities, none of them had ever stepped foot in China or any other Asian country for that matter. Lack of experience in China was not the only issue. Nick's spouse, Ella, had just finished her law degree and was about to begin her legal career (and begin paying off her student loans) by working for a local law firm for which she clerked the previous summer. Nick and Ella have two children, Jenny who is 15 and starting her sophomore year in high school, and Luke who is 10 and will be entering the 5th grade.
Nick explained to Ella and the kids that the company would pay for them to accompany Nick on the one-year assignment, but he pointed out that there were some other issues to consider. Nick was told that he and his start-up team would have to travel to multiple cities while in China and that he would be required to spend up to five days or more a week on-site making sure that all of the HRM activities such as recruitment, selection, initial training, and payroll would get done on time according to the company's standards and guidelines. This would mean that Ella, Jenny, and Luke would be on their own in Beijing for most of time the family was living in China. Jenny said she would go if the assignment meant a lot to her father's career; but in a quiet moment Jenny told Ella that she would be upset if she missed getting on the JV soccer team this year (a goal for which she had been training hard). Also, her inner circle of friends didn't want her to go because she was a very popular member of the group and her friends were supportive but not really excited about her "taking off for a year." As for Luke, he was a little nervous about the idea of going to the other side of the world where everything and everyone would be different, but he had an adventurous attitude and usually adjusted to new places and people reasonably well (the family had moved a few times across three states over the years). These reservations aside, both Nick and Ella felt that this opportunity could be really good for Nick's career and that the kids would adjust reasonably well after getting settled and making some friends in Beijing. As for Ella's plan to start her career at the law firm, she had to give that some thought.
As for assistance, assume that McDonald's offers Nick a generous expatriate relocation package that includes predeparture language and cross-cultural training for him as well as Ella and kids, a foreign service premium worth about 30 percent of his base salary, a completion bonus after he successfully finished his one-year assignment, an apartment hunting trip for Ella and him, assistance with tax preparation, subsidized housing while overseas, full medical care, and subsidized tuition for his children at the international school in Beijing. Also assume that McDonald's offers to help find Nick an HRM position that takes advantage of his newly acquired international experience after his assignment is complete and he returns to the United States. If Nick should go by himself, the company will pay for him to fly back to the United States on two different occasions for one week at a time.
In a quiet moment, Nick and Ella sit down over coffee to decide whether Nick should go alone or whether the whole family should go to China.
If Ella goes to China for a year, how might that decision impact her career What are her chances of working for the local law firm when she returns from China

Question 16

A One-Year Assignment to China: Go Solo or Bring the Family
Assume that Nick Connors, a fictitious HR manager, was just added to a 10-person international team of McDonald's employees who have been tasked with opening up several new restaurants throughout China during the next 12 months. Nick was chosen because he's an exceptionally effective HR professional who has worked for the company for 10 years and has experience with starting up McDonald's restaurants in the United States. McDonald's, with worldwide sales revenue of about $24 billion in 2010, wants to take advantage of the fast-growing Chinese fast-food market. Unfortunately, Nick and his team are quick to discover that there is stiff competition from other large American fast-food chains that already have a large presence in China. For example, Kentucky Fried Chicken and Pizza Hut (both owned by Yum Brands) have enjoyed years of growth and profitability in this market of 1.3 billion people. As of 2011, Kentucky Fried Chicken was the largest restaurant chain in China with 3,200 outlets located in 700 cities, while Pizza Hut had 500 outlets in 130 cities. How does McDonald's compare As of 2011, McDonald's had approximately 1,300 stores located in 150 cities throughout China and reported plans to open 700 more by 2013. By that same year, the company plans to remodel 80 percent of its existing stores in the country. Nick and his team are very excited about the opportunity to help McDonald's expand its world-famous brand throughout this high-potential Chinese market.
Before leaving on his one-year international assignment that will be based out of Beijing, Nick and his family had several discussions about whether they should accompany him. While Nick and his family had taken some international vacations to Cancun, Montreal, London, and some other European cities, none of them had ever stepped foot in China or any other Asian country for that matter. Lack of experience in China was not the only issue. Nick's spouse, Ella, had just finished her law degree and was about to begin her legal career (and begin paying off her student loans) by working for a local law firm for which she clerked the previous summer. Nick and Ella have two children, Jenny who is 15 and starting her sophomore year in high school, and Luke who is 10 and will be entering the 5th grade.
Nick explained to Ella and the kids that the company would pay for them to accompany Nick on the one-year assignment, but he pointed out that there were some other issues to consider. Nick was told that he and his start-up team would have to travel to multiple cities while in China and that he would be required to spend up to five days or more a week on-site making sure that all of the HRM activities such as recruitment, selection, initial training, and payroll would get done on time according to the company's standards and guidelines. This would mean that Ella, Jenny, and Luke would be on their own in Beijing for most of time the family was living in China. Jenny said she would go if the assignment meant a lot to her father's career; but in a quiet moment Jenny told Ella that she would be upset if she missed getting on the JV soccer team this year (a goal for which she had been training hard). Also, her inner circle of friends didn't want her to go because she was a very popular member of the group and her friends were supportive but not really excited about her "taking off for a year." As for Luke, he was a little nervous about the idea of going to the other side of the world where everything and everyone would be different, but he had an adventurous attitude and usually adjusted to new places and people reasonably well (the family had moved a few times across three states over the years). These reservations aside, both Nick and Ella felt that this opportunity could be really good for Nick's career and that the kids would adjust reasonably well after getting settled and making some friends in Beijing. As for Ella's plan to start her career at the law firm, she had to give that some thought.
As for assistance, assume that McDonald's offers Nick a generous expatriate relocation package that includes predeparture language and cross-cultural training for him as well as Ella and kids, a foreign service premium worth about 30 percent of his base salary, a completion bonus after he successfully finished his one-year assignment, an apartment hunting trip for Ella and him, assistance with tax preparation, subsidized housing while overseas, full medical care, and subsidized tuition for his children at the international school in Beijing. Also assume that McDonald's offers to help find Nick an HRM position that takes advantage of his newly acquired international experience after his assignment is complete and he returns to the United States. If Nick should go by himself, the company will pay for him to fly back to the United States on two different occasions for one week at a time.
In a quiet moment, Nick and Ella sit down over coffee to decide whether Nick should go alone or whether the whole family should go to China.
What would you do if you were Nick Go alone to China, or ask Ella, Jenny, and Luke to accompany you

Question 17

Objective
The exercise is designed to have students review and consider the goals of various developmental approaches used by organizations.
Set Up the Exercise
Review the six approaches ( a - f ) used to develop global managers in the table in Exhibit 4A-1. Answer the following for each approach.
1. What can the firm accomplish with the approach used
2. What would the cost-benefit analysis for each approach illustrate
3. How do your answers to questions 1 and 2 compare with those of other students
4. Why are students' responses different

Question 18

What is your opinion of offshoring or moving jobs to international locations like India Explain.

Question 19

Think back to the major HRM challenges facing multinational corporations. Which challenges are the most difficult to address

Question 20

If you were to take a job for an Indian company like Infosys or Wipro, what types of adjustments (if any) would you need to make compared to going to work for an American company