IHRM Case Study 1 1. Consider the three candidates in Exhibit A below. It forced to make a decision tomorrow, which candidate should Alistair choose for the job? What major factors should determinate his choice? Trianon is an Anglo-French avionics company, headquarter is in Marseille. Alistair was hire as Director of Personnel Development European Division, and he has to recruit a Quality Compliance Manager for the site in Hungary. In fact, decision was making for a ten-year joint venture with a Hungarian government-backed firm.
The new manager needs to be available soon and has to be familiar with the joint venture’s objectives and targets. The way I see best to be able to choose between the given candidates for Alistair, is to start by list the strengths and weakness for the fitting job. A more refined way to approach this task is taking in consideration the three proposed candidates and reviews the job description accordingly to the strengths and weakness. Reaching out to possible close regions such as Hungary would help in giving a clearer view the abilities of the best fitting candidate.
Having said that there is no perfect candidate among the three. From the short list given by Alistair each of the three have their strengths and weakness balanced out. Maria: Mrs, Erten-Loiseau is the best-fit choice for the job. As she was educated in France and Germany, it’s to the advantage of starting up joint venture to hire a candidate that fluently speaks in French and German. In addition to have worked for Trianon for 13 years insures that she can handle a high level of responsibility and already has insight of processes and procedures.
Already proven her abilities in the success of the two projects in Lodz, Poland and Czech Republic. Having said all that the two possible weaknesses to keep in mind is her marriage to a semi-retired husband with a child in university therefore might not be able for the shift to Hungary. As well as Mrs. , Maria would be new to the production of the cathode ray tube, no previous experience. Janos Gabor: Mr Janos was born, raised and educated in Hungary so for that reason he is fluent in Hungarian. Jones is single with no responsibilities and independent on taking decisions unlike Mrs.
Maria and for these two reasons he wouldn’t have issues in working in hungary and possible trips to Germany and France . In addition an advantage of his, that he has experience in the production of the cathode ray tube as he is the Senior Engineer of the production and is familiar with maintain a facility. As well his family has strong connections with national government officials. Having this relation would be a bonus asset to expanding contacts for the long term of Trianon. Having said all this he is a great risk knowing he his short time frame with Trainon would create a conflict between local contracts and Trainon.
Sinead Marrinan McGuire: Mrs. Sinead resume has impressive technical potentials in particular in the field of joint ventures. Mrs. McGuire on the other has many weaknesses that wouldn’t be fit as a candidate for the position. Beginning with she has been more drawn to the Western Europe regions, therefore has constraints in languages and communication abilities. She is married and her wife is well culture submerged and has a stable career in Ireland along with three children. Taking her into consideration as a potential candidate one should take into consideration what chapter 4 talks about « family friendly policies » . 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? The first and forth most step in recruitment and selection process for Trianon HR team would be to create a job description for the role required for Quality Compliance Manager of the joint venture in Hungary.
The role of job analysis is to provide information about what duties the job entails and what human characteristics are required to perform these activities as said by Dressler (2011) . Having that in mind would help the Trainon HR team to conclude a job description, role and responsibility, and job specification to make the decision for the three years contract based in Hungry. The advantage to start off this way would help in eliminating candidates leaving the best fit for the job and parallel stating it making it clear from the start.
To the typical job identification details it should include the following: client relationships, responsibilities and duties, solve any optical that comes along and the goals to be achieved. Before staffing the criteria must be defined. The criteria aren’t the same for each expatriation. The most frequent criteria are: – Technical Ability: Maintains and demonstrates appropriate and necessary technical knowledge related to a discipline or Agency function and continues to refine relevant analytical/technical skills as well as professional judgment. Cross-cultural suitability: will the candidate be able to function in the new environment, how adaptable is a person. – Family Requirements: When the department of IHRM is recruiting for a position abroad they also must take into account the family factor. -MNE Requirements: The MNE must make the right choice of their strategies of expatriates; HCN, PCN, TCN -Language: The expatriate should have some good language skills. It is important to have a basis of the mother tong of the country. Country / Cultural Requirements: The employee must be well informed about the culture and traditions of the country in which it will work. It must also be informed about the management habits. -The use of selection tests. There are 4 strategies of international Staffing (Heenan &Perlmutter): Ethnocentric, Geocentric, Polycentric, and Geocentric. In our case with Trianon, it would be wiser to choose the ethnocentric staffing strategy. This strategy is fine for businesses that are at the beginning of their internationalization.
We know that it’s Trianon’s first joint – venture with an Easter European company. Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. Headquarters generally adopts this policy by sending employees from the home or parent countries to the host country. This approach is used best in some situations such as, a team is sent from the home country to help setting up a new plant as well as train subsidiary personnel to use new system.
The benefit of having staffs from home country abroad is that employees may gain experiences worldwide in order to become higher level in management of their headquarters because international managers require broad perspective and international exposure. In this recruitment strategy the key positions are occupied by PCN’s. PCN’s are going from the headquarters to the subsidiaries, in our case to the new firm. The reasons why we use PCN’s are quit clear. Several advantages result from employing PCNs who have experience in the organization rather than headquarters as being familiar ith the organizations goals, products, services, technology, policies, and procedures usually considers HCNs or TCNs. PCNs. This familiarity may help facilitate coordination, control, and development of organizational strategy. I think it is important because this joint venture is a new project that has been decided very quickly. Having a PCN on place will permit Trianon to keep an eye on all activities. After have finished with step one, advertising will play the next role meaning to spread the word around job opening opportunity, example through internal market as Trianon website and external markets.
The applicant’s resumes would have to be sifted by a assigned person that has the speed /intelligence if possible engineer or project management skills to narrow down the applicants for an interview(s). The interview can be conducted the following methods: work samples, virtual presentations, contacting previous references of applicant (supervisors or managers), cognitive ability and lastly a personal interview. Issues to be discussed during the interviews by the interviewer should consist of family status (if flexible in travelling multiple times and surely to live in Hungry) and cross-cultural aptitude.
Reference: (2011) Dressler, G. 2011, Human Resource Management, 12th edn, Pearson Education /Prentice Hall, Upper Saddle River, NY, p. 117. 3. Should RH staff be involved in strategic decisions relating to international business operations such as finalizing a joint venture agreement? A joint venture is a contractual business undertaking between two or more parties. It is similar to a business partnership, with one key difference: a partnership generally involves an ongoing, long-term business relationship, whereas a joint venture is based on a single business transaction.
Individuals or companies choose to enter joint ventures in order to share strengths, minimize risks, and increase competitive advantages in the marketplace. Frayne and Geringer (1990) show that out of control mechanisms and coordination of formal and traditional, such as the majority position in providing capital or having representatives in the Board of Directors, practices of human resource management are also potentially valuable mechanisms to exercise control and coordination in international joint ventures.
Compared to the final structure of the system of coordination in a joint venture international coordination mechanisms based on the human resources are often the key factors in determining the effectiveness of the system. Without the growth of human resources now considered a strategic resource within a company, it would be difficult to ensure the future strategic long-term business, even if financial resources are crucial.
In international joint ventures, the role of human resources is essential to achieve the desired outcomes (Frayne & Geringer, 1990, Cyr & Schneider, 1996). A set of policies and practices of human resource management developed carefully can contribute significantly to the success of international joint venture. It can help the adjustment of cultures and practices among business partners in the joint venture, as a mechanism for coordination, organizational learning, strengthen the selection and leadership development to be able to work in international cooperation.
On the other hand, human resource management can help increase the productivity of the joint venture, as well as the capacity of partner companies to reap the benefits (Child & Faulkner, 1998) There are four main dimensions among the practices of human resource management that are likely to be used as coordination mechanisms: recruitment and how to fill key positions, training and development, performance appraisal, strategies remuneration and reward.
Practices of human resource management can help to achieve the strategic objectives of firm’s relatives. One example is in the number of executives from parent firms, the latter may well coordinate and directs the activities of the joint venture. In addition, the use of training and the use of flexibility can also help overcome differences in strategic and national cultures between parent firms (Chapter 3).
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