Eyad Refaie, WK5 Assignment, Case 2, HRM709-F1WW, Prof.

Bob Barrett, October 29, 2015

To: Dr. Barrett, HR Director

From: Eyad Refaie
Subject: Bavarian Auto Works in Indonesia
Date: October 29, 2015

The friendship between the two countries-Germany and Indonesia- has been ongoing for many

years, that includes the political, economic, and cultural level. German-Indonesian cultural

similarities extend to the variety of cultural aspects based on their long term relation since the

16th century when German merchants traveled to the region that was known as the East Indies at

the time. Connected culture still exists till this day, as the German Season- that covers different

areas of Germany’s science and technology, politics and society, culture and sport- takes place in

Jakarta, and other different cities in Indonesia every year starting in September through

November.

("German Season in Indonesia - Deutschland.de - Your link to Germany," n.d.)

In this case - Bavarian Auto Works in Indonesia (Germany/Indonesia) - merged business may

face difficulties on both sides, which are linked to cultural differences. The study shows the

major cultural difference between the two cultures are the educational background, and the

personal relationships and trust as the forms of control in the business processes.

The HR role during the negotiation is major because of the knowledge of the cultural and

behavioral basis of the Indonesians in general. The cultural sensitivity of the Indonesians makes

the HR job easier than expected. In other words, when they deal with emotionally based culture,
Eyad Refaie, WK5 Assignment, Case 2, HRM709-F1WW, Prof. Bob Barrett, October 29, 2015

the key of negotiation’s success is to impose the trust factor and be respectful to the culture and

beliefs.

As it is explained, in this case, the Indonesians’ nature lean toward the personal relationship and

trust base transactions. Thus, HR managers can assist in the negotiation success by insuring the

availability of all the materials that is needed to draw a clear and precise picture of the future

merger and its goals, such as data and descriptive materials for the merger plan.

In regards to the workforces; HR -based on the background of the historical relation, and the

differences between the two countries- may adapt to a strategy to build the trust, and yet, enforce

the control over the employees with minimum conflict. By forecasting the reasons of managers

and workers’ fear, HR role -as a connection link between the workforce and management- can

succeed in wiping out the confusion and mistrust by ensuring their jobs, continuity of their

career, and highlight the intentions of technological development links to the merger.

Moreover, HR can resolve the lack of knowledge and skills by utilizing a mix of internal and

external training programs and customizes its training depending on the employees’ needs.

For example, SAP is a software giant based in Walldorf, Germany, with locations in 130

countries. It has an elaborate diversity program, which includes cultural sensitivity training.

SAP’s office connects new employees with existing employee networks. The 30 networks

include a Latino group, a female business network and a group for parents of children with

disabilities. All SAP employees can take classroom-based training and receive interactive

instruction. The company uses a mix of internal and external trainers and customizes its training

depending on the location destination and employees’ needs.

("How to Create an Effective Cross-Cultural Training Program," n.d.)

Eyad Refaie, WK5 Assignment, Case 2, HRM709-F1WW, Prof. Bob Barrett, October 29, 2015

Also, the historical relations between the nations will play a crucial part of the positive attitude

and co-operation between the employees from both countries in the workplace.

The main cultural differences that may affect the relationship between the Germans and the

Indonesians could be the educational background, and the centralization system of the Germany

industries. One of the examples that may explain this conflict is the failed merger between

Mercedes-Benz and Chrysler. One of the main reasons for the merger failure was the hierarchy

and centralization of the Mercedes-Benz Company’s structure.

Eyad Refaie, WK5 Assignment, Case 2, HRM709-F1WW, Prof. Bob Barrett, October 29, 2015

References

Briscoe, D., Schuler, R, & Tarique, I. (2012). International human resource management:
Policies and practices for multinational enterprises (4th Ed.). New York: Routledge,
Taylor & Francis.

German Season in Indonesia - Deutschland.de - Your link to Germany. (n.d.). Retrieved from
https://www.deutschland.de/en/topic/culture/creativity-fashion/german-season-in-
indonesia

Cultural differences influencing German HR policies in Asia. (n.d.). Retrieved from

http://www.freepatentsonline.com/article/Journal-Asia-Business-
Studies/174193538.html

How to Create an Effective Cross-Cultural Training Program. (n.d.). Retrieved from

http://www.shrm.org/publications/hrmagazine/editorialcontent/2015/010215/pages/01021
5-cross-cultural-training.aspx#sthash.7hLDnKEO.dpuf
Eyad Refaie, WK5 Assignment, Case 2, HRM709-F1WW, Prof. Bob Barrett, October 29, 2015

Appendix

Case Analysis Rubric

Total 75 points

Criteria Unacceptable Acceptable Proficient Student Points

and Comments

Discusses the role Vaguely addresses Discusses the role Discusses the role
HR plays in the and discusses the HR plays in the HR plays in the
development of the role HR plays in the development of the development of the
joint venture. development of the joint venture and, joint venture and
joint venture or for the most part, demonstrates solid
completely off the fulfills assignment ability to
topic. requirements. accomplish the
assignment.

(0-3 points) (4 points)

(5 points)

Discusses the role Vaguely discusses Discusses the role Discusses the role
of each party in the the role of each of each party in the of each party in the
negotiation. party in the negotiation and, for negotiation and
negotiation or the most part, demonstrates solid
completely off the fulfills assignment ability to
topic. requirements. accomplish the
assignment.

(8 points)
(9-10 points)
(0-7 points)

Discusses the Vaguely discusses Discusses the Discusses the

policies and the policies and policies and policies and
practices that practices that practices that practices that
should be should be should be should be
developed and the developed and the developed and the developed and the
order for order for order for order for
development and development and development and development and
why. why or completely why and, for the why and
off the topic. most part, fulfills demonstrates solid
assignment ability to
requirements. accomplish the
assignment.
Eyad Refaie, WK5 Assignment, Case 2, HRM709-F1WW, Prof. Bob Barrett, October 29, 2015

(0-7 points) (8 points) (9-10 points)

Discusses which Vaguely Discusses which Discusses which

policies are likely to discusseswhich policies are likely to policies are likely to
be areas of concern policies are likely to be areas of concern be areas of concern
in the successful be areas of concern in the successful in the successful
merger of the two in the successful merger of the two merger of the two
firms. merger of the two firms and, for the firms and
firms or completely most part, fulfills demonstrates solid
off the topic. assignment ability to
requirements. accomplish the
assignment.
(0-7 points)
(8 points)
(9-10 points)

Discusses the Vaguely discusses Discusses the Discusses the

problems in the the problems in the problems in the problems in the
relationship relationship relationship relationship
between the between the between the between the
Germans and the Germans and the Germans and the Germans and the
Indonesians. Indonesians or Indonesians and, for Indonesians and
completely off the the most part, demonstrates solid
topic. fulfills assignment ability to
requirements. accomplish the
assignment.

(8 points)
(0-7 points)
(9-10 points)
Eyad Refaie, WK5 Assignment, Case 2, HRM709-F1WW, Prof. Bob Barrett, October 29, 2015

Discusses how Vaguely discusses Discusses how Discusses how

culture may impact how culture may culture may impact culture may impact
the negotiations and impact the the negotiations and the negotiations and
the day-to-day negotiations and the the day-to-day the day-to-day
operations. day-to-day operations and, for operations and
operations or the most part, fulfills demonstrates solid
completely off the assignment ability to accomplish
topic. requirements. the assignment.

(9-10 points)

(0-7 points) (8 points)

Synthesizes relevant Synthesizes For the most part, Consistently and

information and information at a effectively effectively
materials to provide minimal level. synthesizes synthesizes
evidence of critical information, which information, which
thought. supports main ideas. provides strong
support to main
ideas.

(0-7 points)
(8 points)
(9-10 points)

Considered Considered Considered Considered

holistically, holistically, the holistically, the holistically, the
demonstrates the student student student
ability to write at demonstrates an demonstrates an demonstrates a
the graduate level. inadequate ability to acceptable ability to proficient ability to
write at the write at the write at the
graduate level. graduate level. graduate level.

(0-7 points) (8 points) (9-10 points)

Total Points =