Socometal HRM 3 questions, Economics Homework Help

  

After reading the attached mini-case, Socometal, please just answer the 3 questions at the end of the case. Your grade will be based on how well you apply course content to this specific context when addressing the questions.Look at my book and make sure there are some point applies in the book!
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Socometal: Rewarding African Workers
By: Evalde Mutabazi and C. Brooklyn Derr
It was a most unusual meeting at a local café in Dakar. Diop, a young Senegalese engineer who
was educated at one of Frances’s elite engineering grandes ‘ecoles in Lyon, was meeting with
N’Diaye, a model factory worker to whom other workers from his tribe often turned when there
were personal or professional difficulties. N’Diaye was a chief’s son, but he didn’t belong to the
union and he was not an official representative of any group within the factory.
Socometal is a metal container and can company. While multinational, this particular
plant is a joint venture wherein 52 percent is owned by the French parent company and 48
percent is Senegalese. Over the last twenty years Socometal has grown in size from 150 to 800
employees and it has returns of about 400 million FCFA (African francs) or $144 million. The
firm is often held up as a model in terms of its Africanization of management policies, whereby
most managers are now West African with only 8-10 top managers coming from France.
During the meeting N’Diaye asked Diop if he would accept an agreement to pay each
worker for two extra hours in exchange for a 30 percent increase in daily production levels. If so,
N’Diaye would the guarantor for this target production level that would enable the company to
meet the order in the shortest time period. “If you accept my offer,” he said with a smile, “we
could even produce more. We are at 12,000 (units) a day, but we’ve never been confronted with
this situation. I would never have made this proposal to Mr. Bernard but, if you agree today, I
will see that the 20,000 (unit) level is reached as of tomorrow evening. I’ll ask each worker to
find ways of going faster, to communicate this to the others and to help each other if they have
problems…”
Mr. Olivier Bernard, a graduate of Ecole Centrale in Paris (one of Frances’s more
prestigious engineering schools), was the French production manager, and Diop was the assistant
production manager. Mr. Bernard was about 40 and had not succeeded at climbing the hierarchal
ladder in the parent company. Some report that this was due to his tendency to be arrogant,
uncommunicative and negative. His family lived in a very nice neighborhood in Marseille, and
it was his practice to come to Dakar, precisely organize the work using various flowcharts, tell
Diop exactly what was expected by a certain date and then return to France for periods of two to
six weeks. This time he maintained that he had contracted a virus and needed to return for
medical treatment.
Shortly before Mr. Bernard fell ill, Socometal agreed to a contract requiring them to
reach in short time a volume of production never before achieved. Mr. Bernard, after having
done a quick calculation, declared, “We’ll never get that from our workers— c’est impossible!”
After organizing as best he could, he left for Marseille.
Diop pondered what N’Diaye had proposed, and then he sought the opinions of
influential people in different departments. Some of the French and Italian expatriates told him
they were sure that the workers would not do overtime, but felt confident enough to take the risk.
The next morning N’Diaye and Diop met in front of the factory and Diop gave his agreement on
the condition that the 30 percent rise in daily production levels be reached that evening. He and
the management would take a final decision on a wage increase only after assessing the results
and on evaluating the ability of the workers to maintain this level of production in the long run.
The reasons given by the French and Italian expatriates for why the Senegalese would not
perform overtime or speed up their productivity are interesting. One older French logistics
manager said, “Africans aren’t lazy but they work to live, and once they have enough they refuse
to do more. It won’t make any sense to them to work harder or longer for more pay.” And the
Italian human resource manager exclaimed, “We already tried two years ago to get them to do
more faster. We threatened to fire anyone caught going too slow or missing more than one day’s
work per month, and we told them they would all get bonuses if they reached the production
target. We had the sense that they were laughing behind our backs and doing just enough to
keep their jobs while maintaining the same production levels.”
Four days after their first negotiation, the contract between Diop and N’Diaye went into
action. Throughout the day N’Diaye gave his job on the line to two of his colleagues in order to
have enough time and energy to mobilize all the workers. The workers found the agreement an
excellent initiative. “This will be a chance to earn a bit more money, but especially to show
them (the French management) that we’re more capable than they think,” declared one of the
Senegalese foremen. From its first day of application the formula worked wonders. Working
only one extra hour per day, every work unit produced 8 percent more than was forecast by Diop
and N’Diaye. Over the next two months, the daily production level oscillated between 18,000
and 22,000 units per day — between 38 and 43 percent more than the previous daily production.
It was at this production level, never experienced during the history of the company, that Mr.
Bernard found things when he returned from his illness.
“I,” said Diop, “was very happy to see the workers so proud of their results, so satisfied
with their pay raise and finally really involved in their work…. In view of some expatriates’
attitudes it was a veritable miracle…. But, instead of rejoicing, Mr. Bernard reproached me for
giving two hours’ pay to the workers, who were only really doing one hour more than usual. ‘By
making this absurd decision,’ he said, ‘you have put the management in danger of losing its
authority over the workers. You have acted against house rules… You have created a precedent
too costly for our business. Now, we must stop this ridiculous operation as quickly as possible.
We must apply work regulations…’ And he slammed the door in my face before I had the time
to say anything. After all, he has more power than me in this company, which is financed 52
percent by French people. Nevertheless, I thought I would go to see the managing director and
explain myself and present my arguments. I owed this action to N’Diaye and his workers, who
had trusted me, and I didn’t care if it made Bernard any angrier.”
In the meantime, the decided to maintain the new production level in order to honor their
word to N’Diaye and Diop. A foreman and friend of N’Diaye stated, “At least he knows how to
listen and speak to us like men.”
The foreman indicated, however, that they might return to the former production level if
Bernard dealt with them as he did before.
CASE DISCUSSION QUESTIONS
1. What are the underlying cultural assumptions for Mr. Bernard and how are these different
from the basic assumptions of N’Diaye and Diop?
2. What would you do if you were Bernard’s boss, the managing director?
3. In what ways is a reward system a cultural phenomenon? How might you design an
effective reward system for Senegal?
SIXTH EDITION
INTERNATIONAL HUMAN
RESOURCE MANAGEMENT
PETER. J. DOWLING, MARION FESTING AND ALLEN D. ENGLE, SR.
INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT
SIXTH EDITION
PETER J. DOWLING
MARION FESTING
ALLEN D. ENGLE, SR.
International Human Resource
Management, 6th Edition
Peter J. Dowling, Marion Festing and
Allen D. Engle, Sr.
Publishing Director: Linden Harris
Publisher: Andrew Ashwin
Development Editor: Charlotte Green
Production Editor: Alison Cooke
Production Controller: Eyvett Davis
Marketing Manager: Amanda Cheung
Typesetter: Cenveo Publisher Services
Cover design: Adam Renvoize
© 2013, Cengage Learning EMEA
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British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British
Library.
ISBN: 978-1-4080-3209-1
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Cheriton House, North Way, Andover, Hampshire, SP10 5BE
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Printed in China by RR Donnelley
1 2 3 4 5 6 7 8 9 10 – 15 14 13
BRIEF CONTENTS
Preface
Acknowledgements
About the Authors
Walk-Through Tour
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Case 1
Case 2
Case 3
Case 4
Case 5
Case 6
Case 7
Case 8
Introduction
The Cultural Context of IHRM
The Organizational Context
IHRM in Cross-Border Mergers & Acquisitions, International Alliances and
SMEs
Sourcing Human Resources for Global Markets – Staffing, Recruitment and
Selection
International Performance Management
International Training, Development and Careers
International Compensation
International Industrial Relations and The Global Institutional Context
IHRM Trends and Future Challenges
Spanning the Globe
Quality Compliance at the Hawthorn Arms
Wolfgang’s Balancing Act: Rewarding Healthcare Executives in a Dispersed
Yet Integrated Firm
Strategic Forecasts and Staffing Formulation: Executive and Managerial
Planning for Bosch-Kazakhstan
Local and International? Managing Complex Employment Expectations
Expatriate Compensation at Robert Bosch GmbH: Coping With Modern
Mobility Challenges
Balancing Values – An Indian Perspective on Corporate Values from
Scandinavia
Just Another Move to China? The Impact of International Assignments on
Expatriate Families
viii
x
xii
xiv
1
22
46
82
109
150
174
215
241
268
282
287
289
298
305
312
319
328
Glossary
334
Index
342
iii
CONTENTS
Preface
Acknowledgements
About the Authors
Walk-Through Tour
Chapter 1
Chapter 2
iv
viii
x
xii
xiv
Introduction
1
Chapter Objectives
1
Scope of the Book
2
Defining International HRM
2
Differences between Domestic and International HRM
4
Variables that Moderate Differences between Domestic and International HRM
8
The Cultural Environment
9
Industry Type
11
Extent of Reliance of the Multinational on its Home-Country Domestic Market
12
Attitudes of Senior Management to International Operations
14
Applying a Strategic View of IHRM
15
The Changing Context of IHRM
17
Summary
17
Discussion Questions
19
Further Reading
19
Notes and References
19
The Cultural Context of IHRM
22
Chapter Objectives
22
Introduction
23
The Development of Cultures
38
Summary
39
Discussion Questions
40
Further Reading
40
Notes and References
40
CONTENTS
Chapter 3
Chapter 4
Chapter 5
Chapter 6
The Organizational Context
46
Chapter Objectives
46
Introduction
47
Standardization and Localization of HRM Practices
48
Factors Driving Standardization
49
Factors Driving Localization
50
The Path to Global Status
56
Control Mechanisms
69
Summary
73
Discussion Questions
75
Further Reading
75
Notes and References
75
IHRM in Cross-Border Mergers & Acquisitions, International Alliances and
SMEs
82
Chapter Objectives
82
Cross-Border Alliances
83
Cross-Border Mergers and Acquisitions
84
International Equity Joint Ventures
91
International SMEs
95
Summary
100
Discussion Questions
101
Further Reading
101
Notes and References
101
Sourcing Human Resources for Global Markets – Staffing, Recruitment and
Selection
109
Chapter Objectives
109
Introduction
110
Approaches to Staffing
110
Transferring Staff for International Business Activities
116
The Roles of an Expatriate
119
The Roles of Non-Expatriates
122
The Roles of Inpatriates
123
Recruitment and Selection of International Managers
124
Expatriate Failure and Success
126
Selection Criteria
129
Expatriate Selection Processes in Practice
134
Dual Career Couples
137
Summary
140
Discussion Questions
142
Further Reading
142
Notes and References
142
International Performance Management
150
Chapter Objectives
150
v
vi
Chapter 7
Chapter 8
Chapter 9
CONTENTS
Introduction
151
Multinational Performance Management
152
Control and Performance Management
154
Performance Management of International Employees
155
Performance Appraisal of International Employees
162
Summary
168
Discussion Questions
170
Further Reading
170
Notes and References
170
International Training, Development and Careers
174
Chapter Objectives
174
Introduction
175
Components of Effective Pre-Departure Training Programs
177
The Effectiveness of Pre-Departure Training
185
Developing Staff Through International Assignments
186
Trends in International Training and Development
189
Re-Entry and Career Issues
189
The Repatriation Process
191
Individual Reactions to Re-Entry
194
Responses by the MNE
199
Designing a Repatriation Program
205
Summary
207
Discussion Questions
209
Further Reading
209
Notes and References
209
International Compensation
215
Chapter Objectives
215
Introduction
216
Key Components of an International Compensation Program for Expatriates
217
Approaches to International Compensation of Expatriates
221
Tentative Conclusions: Patterns in Complexity, Challenges and Choices
232
Summary
235
Discussion Questions
236
Further Reading
236
Notes and References
236
International Industrial Relations and the Global Institutional Context
241
Chapter Objectives
241
Introduction
242
Key Issues in International Industrial Relations
243
Trade Unions and International Industrial Relations
246
The Response of Trade Unions to MNEs
248
Regional Integration: The European Union (EU)
251
Codes of Conduct – Monitoring HRM Practices Around the World
252
CONTENTS
Managing Human Resources in ‘Offshoring Countries’
253
Summary
259
Discussion Questions
261
Further Reading
261
Notes and References
261
IHRM Trends and Future Challenges
268
Chapter Objectives
268
Introduction
269
Summary and Concluding Remarks
277
Discussion Questions
279
Further Reading
279
Notes and References
279
Case 1
Spanning the Globe
282
Case 2
Quality Compliance at the Hawthorn Arms
287
Case 3
Wolfgang’s Balancing Act: Rewarding Healthcare Executives in a Dispersed
Yet Integrated Firm
289
Case 4
Strategic Forecasts and Staffing Formulation: Executive and Managerial
Planning for Bosch-Kazakhstan
298
Case 5
Local and International? Managing Complex Employment Expectations
305
Case 6
Expatriate Compensation at Robert Bosch GmbH: Coping With Modern
Mobility Challenges
312
Case 7
Balancing Values – An Indian Perspective on Corporate Values from
Scandinavia
319
Case 8
Just Another Move to China? The Impact of International Assignments on
Expatriate Families
328
Chapter 10
Glossary
334
Index
342
vii
PREFACE
According to the 2012 World Investment Report issued by the United Nations the foreign affiliates of
MNEs employed an estimated 69 million workers, who generated $28 trillion in sales and $7 trillion in
value-added, some 9% up from 2010. In 1990, when the first edition of this textbook was published, a
total of 24 million workers were employed. This is merely one of many metrics that demonstrate the extent
of the globalization of business. With this increase in scale, the role of human resource management in sustaining this increase in international business activity is a central theme of this Sixth Edition of our textbook. In writing this new edition we have responded to feedback from users of previous editions and
reorganized the format for the Sixth Edition into 10 chapters instead of 12 chapters. In carefully revising
and updating the chapter Endnotes for this new edition we have been very careful to avoid the common
trap of multiple editions – simply piling on more and more endnotes and leaving the reader to wade
through the growing lists. By carefully culling Endnotes and the Further Reading sections at the end of each
chapter our intention is to provide a reader just being introduced to the fascinating topic of HRM in a multinational context with a reasonable set of critical references as a starting point for their studies. At the same
time, our more advanced readers will be able to evaluate our assessment of the most recent significant citations along with what we consider ‘classic’ empirical or conceptual articles and books.
The more significant changes to the Sixth Edition include the following:
l
In response to feedback from teaching and professional colleagues, we have included a new chapter (Chapter 2)
on The Cultural Context of IHRM. We decided to place this new chapter early in the book so that we now cover
Culture in Chapter 2 and the Organizational Context in Chapter 3.
l
Chapter 4 is now titled IHRM in Cross-Border Mergers & Acquisitions, International Alliances and SMEs to
provide specific contextual information on these important developments in international management.
l
Chapter 6 International Performance Management has been moved from later in the book to earlier to better
reflect the importance of Performance Management in the IHRM process.
l
Chapter 7 International Training, Development and Careers has been moved from later in the book to earlier to
better fit with Chapter 6. The important issue of career planning has also been moved to this chapter to better fit
with contemporary IHR practice to link career development more systematically with training and development.
l
Chapter 9 International Industrial Relations and the Global Institutional Context has been extensively revised and
updated and replaces two (Chapters 9 and 10) in the previous edition.
Several of the IHRM in Action cases embedded throughout the chapters have been replaced or significantly
updated. These changes will help students grasp the principles and models in the chapter and better apply
these ideas to a range of settings or contexts. The eight in-depth cases at the end of the text have been written by the co-authors or solicited from global experts to provide a range of in-depth applications for all of
the major functional areas of IHRM. Extensive teaching notes are provided for adopters of the text. Long
time users of the text will find a more systematic and extensive set of cases, but hopefully our loyal adopters
will still find some of their favorite cases remain as well. Our feedback on these end-of-text cases was outstandingly po …
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