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