HR06 International Human Resource Management

Assignment I
Assignment Code : 2007HR06B1 Last Date of Submission : 30th September 2007 Maximum Marks : 100

This assignment consists of 3 sections Section A (Four Short Questions of 10 Marks each), Section B (Two Long Questions of 20 Marks each) and Section C (Case Study followed by questions of 20 Marks). Attempt all the questions. All questions are compulsory Section A 1.
Define role and outcomes of International HRM. Distinguish International HRM activities from domestic HRM activities.

2.

What are the strategic aspects in International HRM leading to competitive advantages?

3.

What are the various ways to identify employees for overseas assignments? And what initiatives of attractions should a company give for overseas assignments? Explain with the help of suitable example.

4.

What are the components of effective pre-departure training program? example to explain your answer. (10x4=40)

Use an appropriate

Section B 5.
What are the complexities that arise when firm move from compensation at domestic level to compensation in an International context? As an HR manager to design a compensation plan for your organization what all components you will consider? (20)

6.

Discuss various factors associated with expatriates performance. Give the example of an MNC performance appraisal process for a Local Manager and an Overseas Manager.

(20)

Section C Case Study Global Human Resource Management at Coca Cola

The Coca-Cola Company is one of the most successful multinational enterprises. With operations in close to 200 countries and nearly 80 percent of its operating income derived from businesses outside the United States, Coca-Cola is typically perceived as the quintessential global corporation. The Coca-Cola

philosophy is best summarized by the phrase think globally, act locally, which captures the essence of Coca-Colas cross-border management mentality. Coca-Cola grants national businesses the freedom to conduct operations in a manner appropriate to the market. At the same time, the company tries to establish a common mind-set that all its employees share.

The corporate HRM group sees its mission as one of developing and providing the underlying philosophy around which local businesses can develop their own human resource practices. For example, rather than have a standard salary policy for all its national operations, Coca-Cola has a common salary philosophy the total compensation package should be competitive with the best companies in the local market. Twice a year the corporate HRM group also conducts a two-week HRM orientation session for the human resource staff from each of its 25 operating divisions. These sessions given an overview of the companys HRM philosophy and talk about how local businesses can translate that philosophy into human resource policies. Coca-Cola has found that information sharing is one of the great benefits of bringing HRM professionals together. For example, tools that have been developed in Brazil to deal with a specific HRM problem might also be useful in Australia.

As much as possible, Coca-Cola tries to staff its operations with local personnel. However, expatriates are needed in the system for two main reasons. One is to fill a need for a specific set of skills that might not exist at a particular location. For example, when Coca-Cola started operations in Eastern Europe, it had to bring in an expatriate from Chicago, who was of Polish descent, to fill the position of finance manager. The second reason for using an expatriate is to improve the employees own skill base. Coca-Cola believes that because it is a global company, senior managers should have had international exposure.

The corporate HRM group has about 500 high-level managers involved in its global service program. Coca-Cola characterizes these managers as people who have knowledge of their particular field, plus knowledge of the company, and who can do two things in an international location-add value by the expertise they bring to reach assignment and enhance their contribution to the company by having international experience. Of the 500 participants in the program, about 200 move each year. To ease the costs of transfer for these employees, Coca-Cola gives those in its global service program a US-based compensation package. They are paid according to US benchmarks, as opposed to the benchmark

prevailing in the country in which they are located. Thus, an Indian manager in this program who is working in Great Britain will be paid according to US, salary benchmarks and not those prevailing in either India or Britain. An ultimate goal of this program is to build a cadre of internationally minded executives from which the future senior managers of Coca-Cola will be drawn.

Case Questions:

7.

a.

What is Coca-Colas staffing policy for managerial positions: ethnocentric, polycentric, or geocentric? Does this policy make sense?

b.

What is the strategic role of the HRM function at Coca-Cola? How does HRM help Coca-Cola to become a more successful international business?

c.

Do you think it is appropriate to pay expatriates according to US benchmark rates, even when their home operation is not the United States? What potential problems might such a policy cause? What are the benefits of the policy?

HR06 International Human Resource Management

Assignment II
Assignment Code : 2007HR06B2 Last Date of Submission : 15th November 2007 Maximum Marks : 100

This assignment consists of 3 sections Section A (Four Short Questions of 10 Marks each), Section B (Two Long Questions of 20 Marks each) and Section C (Case Study followed by questions of 20 Marks). Attempt all the questions. All questions are compulsory Section A 1.
2. What are the various re-adjustment factors in the re-entry process?

It is difficult to compare industrial relations systems and behaviour across national boundaries. Critically examine the statement.

3.

Explain with example the problems faced by MNCs with diverse workforce and its strategies to manage diversity.

4.

Write short notes on the following:

a.

Cultural Shock Role of the European Union (EU) in labour relation.

b.

(10x4=40)

Section B 5.
What are the roles and competencies required for an HR manager of an MNC to be effective in a highly competitive business environment? What are the barriers to effective International Human Resource Management? (20)

6.

In view of the unprecedented uncertainties and impact of technology, what are the various problems faced by global corporations during their operations in India?

(20)

Section C
Case Study: Managing a Diverse Workforce

Mr. Harley is the CEO of a huge multinational corporation engaged in manufacturing of specialized machinery. He recognized that the only way to successfully manage a diverse work force is to start with management. He felt that managers must empower their employees to make decisions. A new concept was introduced in the company and surprisingly everyone agreed to it. There was a marked change in the employee attitude. Empowerment to resulted in employees working according to their work ethics. Slowly groups began forming and individuals sided with one another. Turnover increased at a number of units across the globe. Company was said to be indecisive and full of unethical practices. Mr. Harley was thoughtful, what had gone wrong?

Case Questions:

7.

a.

What precautions could be company have taken to prevent such a situation?

b.

How did empowerment result in total chaos in the company? Explain with special reference to cultural sensitivity. (10+10)