TEAM
6
NISHANT
ROHIT
VIDISHA
SHWETAURVIE
PRINCY
Summary of the case
Controls Inc., Chicago, Illinois Subsidiary of Filtration Inc., Chicago based
international manufacturing conglomerate Change in rules of acquiring in-house business JV in China by Controls Inc. Poorly planned, unorganised Finalizing the JV agreement with the “Chongming
Electro-Assembly Company”
IHRM Presentation: TEAM - 6
Summary of the case
Expatriate Selection James Randolf Briefed on the hardships faced by Expats Meeting with Joe Whistler, Director of the Freezer and Cooler
Controls Business Unit Orientation
Day long orientation session by Filtration Inc. Look-see trip
Mix-up in the planning between personnel dept. in Pauley and Controls Asia-Pacific regional office, Singapore
IHRM Presentation: TEAM - 6
Summary of the case James accepted the position Two day orientation of living and working in China Interface with other Expats returning from China Mandarin Language Training Hired a Language Tutor on-site Workplace Orientation
Language Working conditions Materials movement and storage Scheduling Issues Over-staffing
IHRM Presentation: TEAM - 6
Summary of the case Adapting to life in China
Support from Filtration Inc.Little operational support from home-officeInconsistent and inefficient support from Controls Asia
PacificSupport from subsidiary office of Filtration Inc. in ChinaUnofficial mentorDifficulties in getting a translatorAccomodation
IHRM Presentation: TEAM - 6
Summary of the case Adapting to the work Discrepancies between the conditions of employment
Ongoing negotiations Adjustments and negotiations on a daily basis Misconception about ease of obtaining Govt. approval Delay in commencing productions by 7 months JV’s Organizational structure
IHRM Presentation: TEAM - 6
Summary of the case Chinese Management Methods Top-Down Approach Good rapport between MD and James Personnel Dept. very powerful and well connected with the communist party James Recognized Communist Party as an Ally Interaction with the Union Observations about the Chinese way of working Observations about the Chinese People Activities away from the job James’s recall and departure Jimmy Chao, the new replacement
IHRM Presentation: TEAM - 6
Critique the apparent expatriate’s selection process used by Controls Inc.
Lack of planning Highly influenced by James’ willingness to go Improper communication
IHRM Presentation: TEAM - 6
Comment on the orientation programs that James undertook
Filtration Inc. – Well designed orientation program Look – See trip Controls Asia-Pacific – Less informed and poorly
managed Incompetent on-site consultant Consisted of area studies, culture assimilators,
language training, and field experiences Disconnect between the orientation and the
actual work setting
IHRM Presentation: TEAM - 6
HRM Strategy at Controls Inc.?
No role of HR in the initial stages of the JV Improper expatriate selection process Improper Organizational Structure Improper control mechanism Mismanagement in relocation strategy Improper orientation Lack of communication Poor recall strategy
IHRM Presentation: TEAM - 6
Recommendation for HRM strategies
Well defined HR department Review the organization structure Well planned and coordinated orientation programs Introducing appropriate control mechanism
IHRM Presentation: TEAM - 6
Was James a good choice for this position? Justify
Yes, but lacked support from the organization Good interpersonal relationship with workers Adjustment to local culture Sufficient technical ability Willingness to move Determined to work against all odds
IHRM Presentation: TEAM - 6
Appropriate course of action?
To continue with their present, haphazard, unplanned approach, and learn through experience and inevitable mistakes
To hire, at considerable expense, a seasoned international HRM specialist, such as a VP from another firm in the “auto” industry
To move more slowly and ensure that all involved in the formulation and implementation of International HR strategy are well trained in the field before undertaking these responsibilities
IHRM Presentation: TEAM - 6
Consequences of poorly managed expatriate management programs
Inability of the expat to adapt to foreign culture Inability of the expat to adjust with different
management styles Language difficulties Lack of comprehension of country specific
concepts Lowered employee performance Retention issues Direct cost
IHRM Presentation: TEAM - 6
Aspects of Chinese business environment that James dealt with
Top bottom approach Strict state control Conservative approach Emphasis on employment generation Poor quality management Guanxi Mianzi Maintaining personal files and their implications
IHRM Presentation: TEAM - 6
Reasons for removal and replacement. Assessment of James’ replacement.
Unable to implement the changes Demographic unsuitability Should have resolved the translator issue
The replacement is cocky, aggressive, opinionated, limited experience
Would not be successful
IHRM Presentation: TEAM - 6
What should James include in his report? How frank should he be?
Details of the orientation program – pros and cons Description of the existing operations Identified operational problems and recommendations Problems faced in cultural adjustments Organizational Support
Present a realistic and true picture
IHRM Presentation: TEAM - 6
Recommendations based on the issues identified in the report
Copies should be send to:- Immediate Manager HR Manager International HR Manager MD of the JV
What recommendations should he make? To whom should he send copies?
IHRM Presentation: TEAM - 6