Taylor’s University Undergraduate Programmes

HRM60804

International Human Resource Management

Study Guide

March Semester 2018

TUTORIAL 1 (WEEK 2):

CHAPTER 1- INTRODUCTION TO INTERNATIONAL HUMAN RESOURCE MANAGEMENT

CLASS ACTIVITIES:
 Briefing

LEARNING OUTCOMES:
Demonstrate an understanding of:
 Layout and content of the Module Information Booklet (MIB)
 Study Guide
 Assessments for IHRM

TUTORIAL EXERCISES:
i) Briefing about the Module Information Booklet (MIB), Study Guide and
assessments
ii) Clarify queries

PREPARATION FOR TUTORIAL NEXT WEEK:

Read Lecture 2 – The Organisational Context
Bring your laptop/I-pad/smart phone which you can access the Internet

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TUTORIAL 2 (WEEK 3):

CHAPTER 2- THE ORGANISATIONAL CONTEXT

CLASS ACTIVITIES:
 Internet search
 Group discussion

LEARNING OUTCOME:

 Explain how MNEs balance their level of standardisation and localisation of their HR
operations with real time organisation examples
 Understand and apply the Festing et al (2007) framework to explain the factors that
influence the extent of standardisation and localisation of the HR activities.

TUTORIAL ACTIVITY:
Get into groups of 4-5 students. Search using the Internet on MNEs and look for information
about their HR activities across the countries that they operate in. You can look for case
studies, journal activities, business articles, corporate information or any relevant materials
that may give you an idea on how they manage their HR activities overseas.

Using Festing et al (2007) framework on balancing standardisation and localisation, explain

to what extent the MNEs standardise or localise their HR operations and what are the factors
that influence the decisions.

Share your findings with the class.

PREPARATION FOR NEXT WEEK:

Read Lecture 3 – The Context of Cross-Border Alliance

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TUTORIAL 3 (WEEK 4):

CHAPTER 3 - THE CONTEXT OF CROSS BORDER ALLIANCE

CLASS ACTIVITIES:
 Case study
 Group discussion

LEARNING OUTCOME:

 Comprehend the mergers and acquisitions (M&As).

 Comprehend the international joint ventures (IJVs)

TUTORIAL ACTIVITY:
Read the case study entitled “HR in the DaimlerChrysler merger” on the next page.
Alternatively, you can read the case on pg. 85 in the textbook.

In groups discuss the following question:

Compare the information given about DaimlerChrysler merger with the list of HR activities
outlined in Schmidt’s (2001) framework. What are the strengths and weaknesses of the
merger from a HR perspective?

Share your answer with the class.

PREPARATION FOR NEXT WEEK:

Read Lecture 4 – International Staffing
Bring your laptop/I-pad/smart phone which you can access the Internet

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HR in the DaimlerChrysler merger

The merger between Chrysler and Daimler Benz was one of the largest in history. Both the
companies had started to screen the automobile industry for partners in 1997. In early 1998 Jürgen E.
Schrempp, CEO of the German-based Daimler Benz company took the initiative and suggested a
merger to Robert J. Eaton, CEO of the American-based Chrysler corporation. The merger contract
was signed in May 1998.

At the beginning of the merger ‘soft’ people skills were not an important issue to consider. Even in
the second phase when the merger was negotiated HR issues continued to play a minor role.
Negotiations were dominated by legal and financial aspects. Due to the strict secrecy at this stage, the
corporate HR directors from both companies were not informed nor involved.

In the integration planning phase in August 1998, management teams from both firms developed
strategies for the merged company. These teams identified a number of issues that had to be dealt
with during the post- merger integration. With respect to HR one important challenge was to solve
the remuneration problem: The German top managers earned much less than their American
counterparts. The contrary was the case for the lower management levels. It was decided that the
salaries for those German top managers who had international responsibility would be raised to US
level. For a broader group of German managers a component of their salary would be linked to the
company’s profit and its share price. At this stage all employees were informed using various media
such as letters, the intranet or films. Furthermore, there was a first awareness about cultural issues in
the merger. The new board was composed by 18 members including both, Schrempp and Eaton as
chairmen, 8 board members from Chrysler and the same number from Daimler-Benz plus 2 from the
Daimler subsidiaries Dasa and Debis.

During the post- merger integration phase mixed teams worked on more than 1000 projects identified
by the post-merger integration coordination team. Only 43 projects were in the area of HR. They
addressed topics such as corporate culture, employee profit-sharing, leadership styles, labour
relations, global job evaluation, exchange programmes and management development. The board
member responsible for human resources was not included in the ‘Chairman’s Integration Council’,
the core of DaimlerChrysler’s management structure during the post-merger integration phase. Within
the first 2 years of the merger DaimlerChrysler lost about 20 top executives, especially from the
Chrysler side. There is little evidence about a systematic retention programme for this level. During
the information campaign for the other levels the focus was on job security. Only two years after the
merger DaimlerChrysler executives had admitted cultural problems. Examples included inappropriate
humour, political correctness, perceived excessive formality, sexual harassment, private relationships
and documentation of meetings. The company offered intercultural training for executives and
management exchange programmes.

In 2000, profitability at Chrysler had sharply dropped and there was a 20 per cent decline in the
DaimlerChrysler share price. At that time, the market capitalization of DaimlerChrysler was little
more than that of Daimler-Benz before the merger. Some years later, at the beginning of 2007 and
after important financial losses mainly on the Chrysler side, media is discussing the possibility of a
separation of Daimler and Chrysler. Although Chrysler had to close several production plants and had
cut down around 40000 jobs during the first years following the merger it has to admit important
economic problems for the third time after the merger endangering the overall success of the
combined company. This seriously affected the success of the merger between Daimler and Chrysler
and let to a separation of the two partners in due course.

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Phase 3

Planning of the new company (integration planning phase)

Developing a new strategy for the new entity

- Issue: the remuneration problem where German top managers earned much less compared to
American counterparts.
- Fix: The salaries of the German top managers who had international responsibility will be
raised same with the US top managers. Whereas for other German managers, a component of
their salary would be linked to the company’s profit and its share price.

Designing key talent retention programs

- No evidence of designing the retention program for the top execs that caused the new
company to lose 20 of its top manager during the first 2 years

Developing employee culture-sensitive communication strategies

- There was no clear indication of any communication strategies. There was only one
awareness of cultural issues but did not go further as developing or planning any
communication strategies to avoid cultural issues.

Helping the organization cope with the change

- All the employees were informed about the changes in remuneration and salaries
through letters, intranet or films.

However, the board member responsible for human resources was not included in the
Chairman’s integration council, yet they are one of the most important people that is needed
to make sure the M&A process goes smoothly. HR include formal policies and everyday
practices for managing people and provide a more specific statement of how people will be
managed. According to Fendt, 2002 and Levinsohn (2002), with IM&A, there are more
inexperienced executives that are less proavtive and tend to underestimate HR issues and
therefore did not involve HR or only involve them later during the process. This is what
happened to the merger of Daimler and Chrysler, where they did not include the board member for
HR in the Chairman Integration council.

Merger only discussed by the top level management, it did not involve soft skilled people

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TUTORIAL 4 (WEEK 5):

CHAPTER 4 - STAFFING INTERNATIONAL OPERATIONS

CLASS ACTIVITIES:

 Internet search
 Group discussion

LEARNING OUTCOMES:

 Comprehend the issues relating to the various approaches to staffing foreign

operations.
 The reasons for using international assignments: position filling, management
development and organisational development.
 The various types of international assignments: short term, extended and longer
term; and non-standard arrangements: commuter, rotator, contractual and virtual.
 The role of expatriates and non-expatriates in supporting international business
activities.

TUTORIAL ACTIVITY:
You will work in groups and assigned with different tasks/questions as below:

1. How different are the issues faced by an expatriate, non-expatriate and inpatriate?
Discuss with support from relevant examples that you can find from your internet
search.

2. As a newly appointed Project Manager of a research team, you consider that you will
be able to manage the project virtually from your office in London, even though the
other six members are located in Munich. What factors should you need to consider in
order making this virtual assignment effective? Discuss with support from relevant
examples that you can find from your internet search.

Share your answers with the class.

PREPARATION FOR NEXT WEEK:

Read Lecture 5 – Recruitment & Selection

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TUTORIAL 5 (WEEK 6):

CHAPTER 5 - RECRUITING AND SELECTING STAFF

CLASS ACTIVITIES:

 Reflective activity
 Group discussion

LEARNING OUTCOMES:

 The debate surrounding expatriate failure.

 Selection criteria for international assignments.

TUTORIAL ACTIVITY:
Individual reflective exercise
If you are given an opportunity to work on an international assignment as an expatriate or an
inpatriate, to what extent are you able to cope with the assignment? What are your strengths
and weaknesses? What are the factors that will support and hinder you from taking on the
assignment?

Discuss your thoughts with your peers/group members. Based on the shared ideas, identify
common competent and incompetent aspects that will determine how you and your
peers/group members qualify for the assignment. Compare your list with the selection
criteria proposed by Dowling et al (2013). Are there any familiar criteria? And are there any
specific differences?

Share your answer with the class.

PREPARATION FOR NEXT WEEK:

Read Lecture 6 – International Training & Development
Bring your laptop/I-pad/smartphone which you can assess the Internet

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TUTORIAL 6 (WEEK 7): LEADERSHIP WEEK

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TUTORIAL 7 (WEEK 8):

CHAPTER 6- INTERNATIONAL TRAINING AND DEVELOPMENT

CLASS ACTIVITIES:

 Internet search
 Group discussion

LEARNING OUTCOME:

 The role of training in supporting expatriate adjustment and on-assignment

performance.
 Components of effective pre-departure training programs such as cultural awareness,
preliminary visits and language skills. Relocation assistance and training for trainers
are also addressed.
 The effectiveness of pre-departure training.

TUTORIAL ACTIVITY:
Search for some real organisational examples on how MNEs conduct their pre-departure
trainings. Explain how these trainings are done and compare the trainings to the essential
components that Dowling et al (2013) gave to render the trainings as effective.

To what extent do you think that the trainings conducted by the MNEs are effective? In your
opinion, how do you measure the effectiveness of the trainings?

Share your answer with the class.

PREPARATION FOR NEXT WEEK:

Read Lecture 7 – International Compensation
Bring your laptop/I-pad/smartphone which you can assess the Internet

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TUTORIAL 8 (WEEK 9):

CHAPTER 7- INTERNATIONAL COMPENSATION

CLASS ACTIVITIES:
 Internet search
 Group discussion
 Presentation

LEARNING OUTCOMES:
 Examine the complexities that arise when firms move from compensation at the domestic
level to compensation in an international context.
 Detail the key components of an international compensation programme.
 Examine recent developments and global compensation issues.

TUTORIAL ACTIVITY:
Work in your groups.

Search for any issues related to international compensation. The issues can be about real-
time data (e.g. expatriates’ compensation, living standards, etc.), the types of international
compensation packages in different MNEs in different locations, the ways the international
compensation packages are designed, challenges or initiatives.

Using the concepts and frameworks that you have studied about international compensation,
prepare a short presentation about the issues that your group has gathered and explain how
the concepts/frameworks are applied.

Share your presentation with the class.

PREPARATION FOR NEXT WEEK:

Read Lecture 8 – Re-entry

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TUTORIAL 9 (WEEK 10):

CHAPTER 8 - RE‐ENTRY AND CAREER ISSUES

CLASS ACTIVITIES:

 Group discussion
 Role Play

LEARNING OUTCOME:

 The process of re-entry or repatriation.

 Designing a repatriation programme.

TUTORIAL ACTIVITY:
Work in your groups.

Using inputs about repatriation process and programme, design a repatriation programme for
your expatriates who are returning from their international assignments. The programme
should include the necessary phases of the repatriation process. You can create the
scenarios/scenes and decide on the roles of your group members in the role play. You should
also work on the script for the role play. The role play should take about 10-15 minutes.

Each group is to present their role play to the class. Other groups will observe and note the
extent of the effectiveness of your repatriation programme.

PREPARATION FOR NEXT WEEK:

Read Lecture 9 – IHRM in the host country context
Bring your laptop/I-pad/smartphone which you can assess the Internet

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TUTORIAL 10 (WEEK 11):

CHAPTER 9 - IHRM IN THE HOST‐COUNTRY CONTEXT

CLASS ACTIVITIES:

 Internet search
 Group discussion

LEARNING OUTCOME:

 Understand the cultural dimensions from the different cross-cultural management

studies
 Explain the impact of the cultural dimensions on HR practices

TUTORIAL ACTIVITY:
Work in your groups. Each group works with one of the following models/frameworks:
 Hofstede
 GLOBE
 Trompenaars & Hampden-Turner
 Hall & Hall

Explain how the cultural dimensions indicated by the models/frameworks influence HR

practices. Give specific examples relating to different countries and cultural dimensions.
You can search for information using the Internet or any readings that are relevant.
Each group is to present their ideas to the class.

PREPARATION FOR NEXT WEEK:

Read Lecture 10 – International Industrial Relations
Bring your laptop/I-pad/smartphone which you can assess the Internet

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TUTORIAL 11 (WEEK 12): E-LEARNING WEEK

CHAPTER10 - INTERNATIONAL INDUSTRIAL RELATIONS

CLASS ACTIVITIES:
 Group discussion
 Internet search

LEARNING OUTCOME:

 Discuss the key issues in international industrial relations and the policies and practices of
multinationals.
 Examine the potential constraints that trade unions may have on multinationals.
 Outline key concerns for trade unions.
 Discuss HR implications of offshoring.

ONLINE TUTORIAL ACTIVITY:

Discuss the following questions:
1. According to Michael R. Quinlan, chairman & CEO of McDonald’s Corp (1991),
McDonald’s has had some “horrible union fights around the world”. Give some
examples of these fights and discuss what the outcomes were.

2. Compare the industrial development qualities of India and China from a global
HR director’s perspective.

You can search and use information from the book, readings and the Internet and prepare a
report of 500 words. You can also include video clips that may help to enhance
understanding of the issues that you are discussing.

PREPARATION FOR NEXT WEEK:

Read Lecture 11 – International Performance Management
Bring your laptop/I-pad/smartphone which you can assess the Internet

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TUTORIAL 12 (WEEK 13):

CHAPTER11 – INTERNATIONAL PERFORMANCE MANAGEMENT

CLASS ACTIVITIES:
 Group discussion
 Internet search

LEARNING OUTCOME:

 Multinational performance management at the global and local level: considering aspects
such as non- comparable data, the volatility of the global environment, the effect of
distance and level of subsidiary maturity.
 Factors associated with expatriate performance, including compensation package, task
and role, headquarters’ support, host environment factors and cultural adjustment.
 Issues related to the performance appraisal of international employees.

TUTORIAL ACTIVITY:
Each group choose a world event from the list given. You can also select other recent world
events that are not included in the list.

List of world events:

 Collapse of communist rule in the late 1980s in Eastern Europe & former Soviet
Union
 Adoption of the Euro as the single currency in EU
 Chinese market reforms
 SARS epidemic
 The Gulf Wars
 Indian Ocean Tsunami in 2004
 Global Financial Crisis in 2008
 The adoption of international accounting standards (IAS)
 The spread of international terrorism
 High profile corporate collapses

Identify the specific HR implications that may arise from this world event. Suggest policies
on how an effective performance management can be carried out in view of this situation.

Share your ideas with the class.

PREPARATION FOR NEXT WEEK:

Bring lecture notes for all the chapters covered in the syllabus

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TUTORIAL 13 (WEEK 14):

REVISION

CLASS ACTIVITIES:

 Individual exercise
 Class discussion

LEARNING OUTCOME:

 Demonstrate an understanding of the syllabus content

 Identify the theories/concepts for topics within the scope
 Understand the different marking standards for a good, average and poor answer scripts
 Develop their analytical and critical thinking and problem solving skill

TUTORIAL ACTIVITY:
Answer the following question:

Trade union leaders have long seen the growth of multinationals as a threat to the bargaining
power of labour because of the considerable power and influence of large multinational firms.
Critically discuss this threat and to what extent you agree with the statement, supported by
organisational examples.

Class discussion will be done with reference to the marking grid and scheme.

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