HUMAN RESOURCE MANAGEMENT ENVIRONMENTAL SCANNING EXERCISE [Lesson Module 1] 1. (a) Select an industry with which you are somewhat familiar [e.g., kitchen appliance manufacturing, personal care products, or after-market automobile parts]. (b) Identify three countries with which companies in your nation might establish a partnership or subsidiary. (c) Assume your locally-based corporation has entered into joint ventures [shared equity and management partnership] in two of those countries, and has a wholly-owned subsidiary [i.e., no partner] operating in the third [your choice]. In both types of business relationships your company has employed a combination of expatriate [i.e., parent-country employees who have been employed in your local operations] as well as host country nationals [HCNs], and employees from at least one other third country [TCNs]. 2. Identify basic trends in the following aspects of the business environment which might affect your business over the next two or three years while engaged in a partnership [international joint venture] or with a whollyowned subsidiary doing business in the group of countries you are assigned. Cite your sources.  Economic  Social-Cultural  Political-Legal  Technological  Market 3. From your analysis, determine potential implications for HRM policies and practices. 4. Using the outline below, prepare a 5-10 minute overview of your findings. 5. Conclude by telling what additional information you would seek and what sources you might use. BRIEFING OUTLINE 1. Industry: ____________________ Group of Countries: _________________________ 2. Key Environmental Trends and HR Implications Environmental Factors and Trends [list several key factors for each of the following] HRM Policy Implications [Identify HR policy implications associated with this and other factors/trends in the column to the left] Economic Conditions Social-Cultural Market/Competition Changes Technological Changes Political-Legal Conditions 3. What additional information would you seek, and name some potential sources. 1 HUMAN RESOURCE MANAGEMENT ENVIRONMENTAL SCANNING EXERCISE (Lesson Module 1) 1. Industry: _Construction Afghanistan (whole-owned subsidiary) Group of Countries: _China, Japan (joint ventures), and 2. Key Environmental Trends and HR Implications Environmental Factors and Trends HRM Policy Implications fist several key factors for each of the following/ [Identify HR policy implications associated with this and other factors/trends in the column to the left Economic Conditions China-Undergoing economic boon, history of - Adjust salary benefits based on strength of economy unsteady economy, massive construction upgrades and local currency (Yen, ete...) force competition among other nations with limited - Address Afghan support function availability world suppliers, GDP Growth is 9.1% (medical, etc...) with coalition forces versus off local Afghanistan - economy on the rise from coalition economy and in conjunction with governmental nation support - GDP Growth 28.6%, massive/rapid support agreements, etc... construction upgrades - Provide security training for unsecure Afghan Japan - One of the strongest economies in the world, environment as well as potential support agreements suffers from a no-import policy that requires the export from coalition forces industry to support a lagging domestic industry Social-Cultural China - Wide range of religions practiced (primarily Provide cultural awareness programs to address Buhhdism and Taoism, with smaller numbers of various religious and cultural differences as well as Muslims, Protestants, and Catholics), awareness of local sensibilities towards TCN and PCN Afghanistan -Male-dominated society attempting religious and cultural backgrounds reform, primarily Muslim (Shi'ite and Sunni who are - Train personnel on differences inherent with team- strong majority - instability resulting) oriented approach Japan - Team-oriented environment, personal gain secondary Market Competition Changes China - Focus on opening up market China's market - - Train personnel on current market status in China major market opportunities viewed by all and Afghanistan and potential for a high influx of Afghanistan-Agreement signed to promote trade competition based on opportun market Japan - Competition to domestic industries closely - Adapt procedures to incorporate local governmental monitored-heavy focus on export market with agreements and regulations restrictions on imports Technological Changes China - Focus on importing technologies that could -Train personnel on existing facility standards and directly translate into upgrading building standards compatability to parent nation standards. Afghanistan - Help being solicited to stand up Train personnel to bring local subcontractors in assistance to the Government of Afghanistan in Afghanistan up to industry standards planning and implementing a new National Institute of Standards Japan - Similar facility standards but with nonstandard parts and supplies. Buildings built to typhoon specifications Political-Legal Conditions China-Commitment under curent regime to economic For all three, address local political and legal reform and opening to outside world, human rights agreements that support/don't support subsidiary issues remain prominent efforts. Address salary benefits based on tax Afghanistan - Held first open election in 2003, requirements for TCN and PCN employees. Japan - Heavy emphasis on protection of domestic industries (hence extensive restrictions on imports) Sources: BRIEFING OUTLINE 1. Industry: Aircraft Avionics Developer/Producer Group of Countries: US, UK (joint venture), India (3rd country) Sykes Avionics Co., based in Wichita, Kansas. Designs, develops, produces, and markets aircraft avionics components for both commercial and military applications. Joint Venture with Limmey Displays in Manchester, England Mumbai Magie, a wholly-owned subsidiary of Sykes Avionics Co., Mumbai, India 2. Key Environmental Trends and HR Implications Environmental Factors and Trends HRM Policy Implications [Identify HR policy implications associated with this and other factors/trends in the column to the left [list several key factors for each of the following/ Economic Conditions - Markets primarily US and Europe (Source: "A hulking beast joins the dogfight, The Economist, Jan. 18, 2005)) -All employees need to have "global mindset', they are not just working to satisfy their market, but working together to serve all markets -Effect of weak S/strong £ and € (Source: "The Passing of the Buck" The Economist, Dec. 4, 2004, p 71-73) -Can cause anxiety in high cost labor markets, emphasize to employees that company wants to maintain long-term presence in all markets and will not overreact to cyclical economic trends -Cheap cost of labor in India (outsourcing - With operations in India, employees at other location may potential) develop fear of their job being outsourced, need to make sure (Source: "How to Tap India's Cheap IT employees understand that the company values people and is Labor: Three things you need to know before not just looking for the cheapest Shired gun' from around the you travel this route" CFO.com, world, make sure they see their role as important and http://www.cfo.com/article.cfm/2988372?f-ar significant, i.e. they are not so easily replaced chives Social-Cultural -Cultural differences between 3 countries -First, be aware of these differences (Source: Course Texts and Samovar & Porter Second, take proactive steps to promote cultural (editors) Intercultural Communications: A understanding, also enculturate all employees worldwide so Reader, 2003.) they have a common vision of how this company operates, i.e. create an 'in-group Third, take advantage of these differences by identifying the strengths of particular groups and then use those strengths to develop competitive advantage and to teach to other global employees. Fourth, I would ensure a systematic process for the incorporation of expatriates into new environments rather than just trying to scoop people up within the organization and send them somewhere else, with the following desired steps: 1. When possible, draw expatriates from within the company or subsidiary so that a certain amount of enculturation into the corporate environment has already been accomplished and provide something for the traveler to hang on to 2. Before moving an employee make sure they participate in what the course text called a SWAT team or other exercises BRIEFING OUTLINE 1. Industry: Engineering and Construction Group of Countries: Russia, Republic of Georgia, Turkey 2. Key Environmental Trends and HR Implications Environmental Factors and Trends [list several key factors for each of the following HRM Policy Implications [Identify HR policy implications associated with this and other factors/trends in the column to the left Economic Conditions Russia- Booming growth rate (WOS) Poor Banking system Low wages for Eng. & Construction Professionals (HCN's) Competition for competent employees Currency exchange rates vary frequenty Pay above average wages - seek higher level of skill High quality of Professionals (HCN's) Identify Highly qualified professionals and attempt to attract them to the company through professional channels Seek high level of multi-languaged professionals English spoken by young professionals (HCN?s) Republic of Georgia (JV) Sluggish economy Great deal of corruption Low wages for Eng. & Construciton Professionals (HCN's) Sluggish economy may cause "stampede" for better paying jobs. Require "Ethics Training" for all HCN's Pay above average wages-seek higher level of skill Low quality of technical expertise (HCN's) Lack of English spoken (HCN's) Poor Banking system Development of Technical Training programs Development of English language training Consider paying employees in cash Turkey-Booming Economy (JV) Good banking system Wages are moderate (HCN's) Professional Expertise readily available (HCN?s) English widely spoken (HCN's) Competition for competent employees Exchange rates stable Wages high but reasonable for what you get Training requirements will be minimal Training requirements will be minimal Social-Cultural Russia-Close family ties (WOS) Dedicated work foree (HCN's) Workers willing to learn western methods Alcohol consumption is a problem (HCN's) Special provisions for family related issues, le, death and maternity leave Rewards and recognization programs will boost productivity Minimal training required but will pay great dividends Assistance programs recommended/screening programs required Housing/schooling double that of North America. Medical facilities excellent Not a problem High cost of living/housing/schooling/medical (expat-TCN's) Religion Republic of Georgia-Close family ties (JV) Dedicated work force (HCN's) Special provisions for family related issues, ie, death and maternity leave Rewards and recognization programs will boost productivity Minimal training required but will pay great dividends Workers willing to learn western methods BRIEFING OUTLINE 1. Industry: Engineering and Construction Group of Countries: Russia, Republic of Georgia, Turkey 2. Key Environmental Trends and HR Implications Environmental Factors and Trends [list several key factors for each of the following HRM Policy Implications [Identify HR policy implications associated with this and other factors/trends in the column to the left Economic Conditions Russia- Booming growth rate (WOS) Poor Banking system Low wages for Eng. & Construction Professionals (HCN's) Competition for competent employees Currency exchange rates vary frequenty Pay above average wages-seek higher level of skill High quality of Professionals (HCN's) Identify Highly qualified professionals and attempt to attract them to the company through professional channels English spoken by young professionals (HCN’s) Seek high level of multi-languaged professionals Republic of Georgia (JV) Sluggish economy Great deal of corruption Low wages for Eng. & Construciton Professionals (HCN's) Sluggish economy may cause "stampede" for better paying jobs. Require "Ethics Training" for all HCN's Pay above average wages-seek higher level of skill Low quality of technical expertise (HCN's) Lack of English spoken (HCN's) Poor Banking system Development of Technical Training programs Development of English language training Consider paying employees in cash Turkey- Booming Economy (JV) Good banking system Wages are moderate (HCN's) Professional Expertise readily available (HCN?s) English widely spoken (HCN's) Competition for competent employees Exchange rates stable Wages high but reasonable for what you get Training requirements will be minimal Training requirements will be minimal Social-Cultural Russia-Close family ties (WOS) Dedicated work foree (HCN's) Workers willing to learn western methods Alcohol consumption is a problem (HCN's) Special provisions for family related issues, le, death and maternity leave Rewards and recognization programs will boost productivity Minimal training required but will pay great dividends Assistance programs recommended/screening programs required Housing/schooling double that of North America. Medical facilities excellent Not a problem High cost of living/housing'schooling/medical (expat-TCN's) Religion Republic of Georgia-Close family ties (JV) Dedicated work force (HCN's) Special provisions for family related issues, ie, death and maternity leave Rewards and recognization programs will boost productivity Minimal training required but will pay great dividends Workers willing to learn western methods
Purchase answer to see full attachment