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Controls Inc. Chicago , Illinois Subsidiary of Filtration Inc. Chicago based international manufacturing corporation. Changes in rules of acquiring in house business JV in China by Controls Inc. Poorly planned, unorganized Finalizing the JV agreement with the Chongming Electro Assembly Company


Expatriate Selection

James Randolf Briefed on the hardships faced by Expats Meeting with Joe Whistler, Director of the Freezer and Cooler Controls Business Unit Orientation
Day long orientation session by Filtration Inc. Look-see Trip

Mix up in the planning between personnel dept. in Pauly and controls Asia Pacific regional office Singapore


James accepted the position Two day orientation of living and working in china Interface with other Expats returning from China Mandarin Language Training Hired a language tutor on site Workplace orientation Language Working conditions Materials movement and storage Scheduling issues Over staffing


Adapting to life in China

Support from Filtration Inc. Little operational support from home office Inconsistent and inefficient support from Controls Asia Pacific Support from subsidiary office of Filtration Inc. in China Difficulties in getting a translator Accommodations


Adapting to the work

Discrepancies between the conditions of employment. Ongoing negotiation Adjustments and negotiation on a daily basis Misconception about the ease of obtaining Govt. approval Delay in commencing productions by 7 months JVs organization structure.


Chinese Management Methods

Top down approach Good report between MD and James Personnel dept. very powerful and well connected with the communist party James recognized Communist Party as an Ally Interaction with the union Observations about the Chinese way of working Observations about the Chinese people Activities away from the job James recall and departure Jimmy Chao, the new replacement.

Critique the apparent expatriate's selection process used by Controls

Lack of planning Highly influenced by James willingness to go Improper communication

Comment on the orientation programs that James undertook

Filtration Inc-Well designed orientation program Look-See trip Controls Asia Pacific-Less informed and poorly managed Incompetent on-site consultant Consisted of area studies, culture, language training, and field experiences Disconnect between the orientation and the actual work setting

HRM Strategy at Controls Inc.

No role of HR in the initial stages of the JV Improper expatriates selection process Improper organization structure Improper Control mechanism Mismanagement in relocation strategy Improper orientation Lack of Communication Poor recall strategy

Recommendation for HRM strategies

Well defined HR department Review the Organization structure

Well planned and coordinated orientation programs

Introducing appropriate control mechanism

Was James a good choice for this position? Justify

Yes, but lacked support from the organization Good interpersonal relationship with workers Adjustments to local culture

Sufficient technical ability

Willingness to move

Determined to work against all odds

Appropriate course of action?

To continue with their present, haphazard, unplanned, approach and learn through experience and inevitable mistakes To hire, at considerable expense, a seasoned international HRM specialist, such as a VP from another firm in the auto industry. To move more slowly and ensure that all involved in the formulation and implementation of international HR strategy are well trained in the field before undertaking these responsibilities

Consequences of poorly managed expatriate management programs

Inability of the expat to adapt to foreign culture Inability of the expat to adjust with different management styles Language difficulties Lack of comprehension of country specific concepts Lowered employee performance Retention Issues Direct cost

Aspects of Chinese business environment that James dealt with

Top bottom approach Strict state control Conservative approach Emphasis on employment generation Poor quality management Guanxi Mianzi Maintaining personal files and their implications

Reasons for removal and replacement. Assessment of James replacement

Unable to implement the changes Demographic unsuitability Should have resolved the translator issue The replacement is aggressive, opinionated, limited experience Would not be successful

What should James include in his report? How frank should he be?

Details of the orientation program-pros and cons Descriptions of the existing operations Identified operational problems and recommendations Problems faced in cultural adjustments Organizational support

Present a realistic and true picture

What recommendations should he make? To whom should he send copies?

Recommendations based on the issues identified in the report Copies should be sent to : Immediate Manager HR manager International HR Manager MD of the JV