Over the past 10 years, East Computer Company has grown from a domestic producer of IBM clones in Boston to a multinational company with assembly plants in four foreign locations. The company’s personnel policies were developed five years ago, before East Computer’s international expansion, by a task force headed by the vice president for HRM in Boston. The company’s CEO has just appointed a new task force to examine the extent to which current domestic personnel policies can be “exported” to East’s new international locations. The essential elements of these policies are the following: 1. All job openings are posted to allow any employee to apply for a position. 2. Selection is based on merit. Appropriate selection devices(for example, tests, structured interviews, and the like) are used to ensure proper implementation of this policy. 3. Nepotism is expressly forbidden. 4. Promotion from within is the norm whenever feasible. 5. Equal employment opportunities are available to all, regardless of sex, race, national origin, or religion. 6. Pay for various positions is established through a rational process that includes both job evaluation and market survey data. 7. There is equal pay for equal work, regardless of sex, race, national origin, or religion. 8. Goals are jointly set by supervisor and subordinate, with an annual formal appraisal session at which both parties have the chance to discuss progress toward goal achievement. The appraisal is used both to provide performance feedback to the employee and as a basis for merit pay decisions. As a first step in evaluating these policies, the vice president for HRM classified the countries where East’s facilities are located according to Hofstede’s dimensions. She came up with the matrix shown below. You have been hired by East Computers Company to help management develop personnel policies for each of the four international facilities. Ideally, management would prefer to use the same policies that it uses in the United States to maintain consistency and reduce administrative problems. However, the vice president for HRM has made a strong case for “tailor-made” personnel policies that are suitable to each facility’s cultural environment.Critical Thinking Questions:1. Given East Computer Company’s present personnel policies, what problems is the companylikely to face in each facility if it transports its domestic policies abroad?2. How would you change or adapt each of the company’s current personnel policies to better fit the cultural environment of each international facility?

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