Global Human Resource Management at ASI
Added on 2020-04-13
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Running head: HUMAN RESOURCE MANAGEMENTIndividual Report based on the Case Study“Strategic considerations for an effective HRM strategy”Name of the Student:Name of the University:Author’s Note
1HUMAN RESOURCE MANAGEMENTContentsIntroduction......................................................................................................................................2Discussion........................................................................................................................................31. 1. Current International Strategy of ASI..................................................................................31.2 Changes required in the current international strategy of ASI...............................................5The ways strategies could stay global in scope and be locally responsive..................................72. 1An effective expatriation program.........................................................................................72.2An effective Repatriation Program.........................................................................................83. Recommendations........................................................................................................................8Conclusion.......................................................................................................................................9Reference List................................................................................................................................10Appendix........................................................................................................................................12
2HUMAN RESOURCE MANAGEMENTIntroduction All Scientific Instruments (ASI) has produced scientific instruments since 1975 and is acompany based in the outskirts of Newburg, Ney York, United States of America. The Newburgplant of the company has almost 2000 workers but there are no unions in the plant. The policy ofBest Practice HRM is followed by the HR department to avoid influence of the union. Thecorporate culture of ASI is strong and values and vision of the company are discussed with theworkforce. The communication bulletins, marketing materials and the pay-slips of the companyhave the prints of the mission statement “Working for progress in the US” .The profit sharingand share-options schemes of ASI elicit commitment of the employees. The culture ofperformance management is strong in ASI and the appraisal system is structured highly and isconnected to promotion and remuneration. The employees of ASI work in small teams andcellular modular feedback is offered to them with TQM approach. The employees of ASI aretrained seriously about technical and people skills and team-working skills. The major exportmarket of ASI is Europe and the boards of ASI took the decision to open subsidiaries first inSweden followed by France. By 2015, the Swedish subsidiary of ASI employed 270 staffs by2015. In the year 2004, a plant of ASI was set up in Arcachon, France with a current employeebase of 200 staffs .The production and marketing arenas of ASI experienced steady growthhowever there are difficulties faced by ASI in human resource policies adopted overseas. It isimportant for ASI to create HRM strategy in alignment with global developmental strategy aswell as these HRM strategies should solve problems faced by ASI in overseas subsidiaries. Theglobal HRM policies and practices of ASI and its present international strategies requireconsideration. Also, a careful planning of policies of expatriation and repatriation is required(Jiang et al. 2012).
3HUMAN RESOURCE MANAGEMENTDiscussion1. 1. Current International Strategy of ASI ASI uses expatriate managers extensively in technical as well as managerial arenas of thebusiness to control its subsidiaries. The parent company plays a pivotal role in setting up thegoals and production targets and the subsidiaries are not consulted while these targets are fixed.The feedback mechanism of ASI is backed by programs of training for all employees. Theexpatriate managers of ASI are instructed either to keep the unions out or to make sure that theunions have minimum influence on the subsidiaries. The magazines of the company publishedin the local language and staff bulletins help in the reinforcement of the strong culture of theASI. The current oversees Human Resource policies of ASI face some problems. The HumanResource practices which are followed by the ASI in the United States are not suitable for thehost countries, the conditions in the subsidiaries are diverse and this is the problem that ASI isfacing currently. The problems faced by ASI are centered around industrial relations,management styles, expatriate managers and the degree of control that is exerted by the parentcompany on subsidiaries. Barriers of communication are prevalent between the expatriates ofASI in America and the workforce in the subsidiary unit of ASI, even though senior managers ofASI in Sweden and France can converse excellently in English. The culture and the workingpractices of the parent company and the subsidiary are quite different. Tom Smythe, the expatriate manger of ASI in Sweden gave the feedback that thesubsidiary in Sweden was a start-up operation but the workforce joined unions, 65 % of theemployees joined unions in Sweden by the completion of the first year and the number of
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