Fundamentals of Human Resource Management Study Set 11

Business

Quiz 15 :

Collective Bargaining and Labor Relations

Quiz 15 :

Collective Bargaining and Labor Relations

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In recent years, many U.S. companies have invested in Russia and sent U.S. managers there in an attempt to transplant U.S.-style management. According to Hofstede, U.S. culture has low power distance, uncertainty avoidance, and long-term orientation and highindividuality and masculinity. Russia's culture has high power distance and uncertainty avoidance, low masculinity and long-term orientation, and moderate individuality. In light of what you know about cultural differences, how well do you think U.S. managers can succeed in each of the following U.S.-style HRM practices? (Explain your reasons.) a. Selection decisions based on extensive assessment of individual abilities. b. Appraisals based on individual performance. c. Systems for gathering suggestions from workers. d. Self-managing work teams.
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Dimension of culture refers the degree of differentiation between different cultures. Knowing these differences can help a manager to do well in the international business markets.
Greet Hofstede's cultural Dimension theory helps to understand unique aspects of culture that can be scaled for comparison. Thus, based on his research, Hofstede identified five different categories of cultural dimension that can be used to understand a country's culture. These five dimensions are as follows:
• Power distance: This dimension expresses the degree to which the less powerful member of a society accepts and perceives that the power is equally distributed in the society. Thus, a society with high power distance are more coercive and use referent power whereas, society who assume themselves at low power distance value reward, legitimate and use expert power to make a decision.
• Individualism/collectivism: This dimension expresses the degree to which members of the society feel connected with each other. Thus, where the bonds between individual are loose, they tend to look after themselves and their family member. Whereas, a society who believes on collectivism social bonds and integrate their relation from birth and are always ready to protect members without anything in return.
• Masculinity/Feminist: It measures the degree to which roles are distributed among genders and the gender who dominate major decisions in the society. Thus, masculinity represents a need for achievement, heroism, material reward for success, recognition. Whereas, feminist society prefers cooperation, caring, modesty and well- balanced life, risk-avoider.
• Uncertainty avoidance: This dimension measures the degree to which members of the society avoid the uncertain situations.
• Long-term/short -term orientation : It measures the degree to which the society values the social obligation and tradition. Thus, the members having long-term orientation value more to thrift and perseverance. Whereas, members who value short -term orientation values for respect, traditions and abide by their social obligations.
a.
Selection decision based on extensive assessment of individual ability of U.S HRM style will help a manager to attract and retain best personnel in the organization. This will help a manager to consider a individual capabilities rather than focusing on the group or collective achievement.
b.
Appraisal based on individual performance will motivate the individual to work hard to achieve high performance appraisal. Moreover, it will create a competition among the employees. Employees will be motivated by achievement, recognition, heroism, material rewards for success and recognition. This will ultimately benefit the organization to achieve it's target.
c.
System for gathering suggestions from worker reflects the participatory or collectivism work culture of a organization. This will enable a manger to create a healthy and harmonious industrial relation.as the collectivism value each and every individual view point. This will also benefits a management to gather more number of alternatives when confronted with a problem.
d.
Self-managing work teams ease a management from controlling and motivating the work force. Thus, a manger gets ample of time that he/she can devote to other important work. A self-managed work group is self- motivated and directed and therefore reduce the chances of group conflict.

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How to Recruit a Public Outcry British Prime Minister David Cameron learned the hard way that sometimes only a local candidate will do. The British police had been rocked by scandal and scathing criticism. The department had responded ineffectively to rioting in London in the summer of 2011, and the police department was mixed up in the scandal in which News Corporation reporters arranged to hack into the phones of public figures. Looking for someone to lead an overhaul of the police department, Cameron looked across the Atlantic and saw someone with major accomplishments: Bill Bratton. Bratton headed the police departments in Boston, Los Angeles, and New York City. His accomplishments included leading those organizations as they restored morale and reduced crime in each city. Based on those successes, Cameron believed Bratton could help the department rein in gang violence and soothe racially based tensions as commissioner of the London Metropolitan Police. So praising Bratton's experience and knowledge, he invited the retired commissioner, now a security consultant, to come work for the British government. Bratton was intrigued by the offer, but the British public was appalled, as were the British police unions. One detective was quoted calling the choice "a sad indictment of what the government thinks of our senior officers in this country." Britain's Home Secretary pointed out that the London police commissioner is also responsible for national security and there should be a British citizen in the position. Prime Minister Cameron opted to work with Bratton as a consultant instead. How could Prime Minister Cameron have avoided the embarrassment of reversing his recruiting decision while considering the best options to fill the commissioner's position?
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Prime Minister Cameron has avoided these criticisms by appreciating his police in the community. Instead of hiring Bratton, he could have hired the senior officer to handle the riots and declared in the media that they will also be taking advice from Bratton over phone. By hiring from locals who have deep knowledge of the British culture, Cameron could have improved the morale of the police officers. This move would definitely have been supported by the media as well as the local communities.

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CAN OFFSHORING BE DONE MORE ETHICALLY? As we saw in Chapter 5, human resource planning involves several options to meet an organization's needs for talent. One option is to outsource activities that can be performed more effectively and efficiently by a contractor. In today's global marketplace, outsourcing decisions frequently involve offshoring activities to companies in lower-wage locations. However, the reasons why labor costs are lower in another country include lower standards for working conditions-even conditions that would be considered unethical in the parent country. As a result, this kind of decision can open up a company to criticism, as Apple has faced with regard to its contractors in China. Apple's employees develop and market new products, but manufacturing of iPhones, iPads, and other products is done by contractors in China. The largest of these is Foxconn, a manufacturer of consumer electronics sold under other companies' brands. Foxconn has been criticized for permitting unsafe working conditions, including the accumulation of aluminum dust thought to have caused two serious explosions in its factories. Foxconn workers have reported working long shifts, as long as 12 hours a day, six days a week, some of them standing throughout their work shifts. Apple is the customer, not the owner, of these facilities, but it tries to exert influence. It has developed a supplier code of conduct laying out standards that contractors must meet in order for Apple to continue buying from them. Suppliers are expected to provide safe working conditions, hire fairly, treat workers with dignity, and follow environmentally responsible practices. Apple sends auditors to visit the factories to check that suppliers are meeting the standards in the code of conduct. It publishes supplier responsibility reports that detail how well the suppliers are meeting the standards. Since Apple began keeping records in 2007, however, more than half of its suppliers have violated at least one requirement every year. Typical problems include employees working more than 60 hours per week; other problems have included using underage workers, paying less than minimum wage, and violating safety requirements. Apple insists that each violation be corrected, and it notes that contractors are showing improvement each year. But former managers of Apple and the China factories have claimed that Apple expresses far more interest in the cost, quality, and speedy delivery of its products than in the working conditions of the people making them. Apple insists that it meets and in some areas exceeds the standards for its industry. Based on the information given, how well has Apple met the standards you set for applying ethical principles internationally? How could the company improve?
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Based on the information given Apple has tried to met the ethical standards internationally. It developed a supplier code of conduct laying out standards for the contractors. It expected from its contractors to provide safe working conditions, treat and hire fairly etc. It also sends its auditors to visit the factories to check whether the suppliers are meeting the standards or not.
However, in reality auditors never reached the Chinese plant and never talked to workers. Due to which unsatisfied workers resulted in suicides or explosives in the factories. Therefore Apple should ensure that auditors do audit the company. Apart from that Apple need to give less emphasis on reducing the production costs. Not only this, if any contractor violates the supplier code of conduct then his contract should be terminated instead of giving him another opportunity.

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For an organization with operations in three different countries, what are some advantages and disadvantages of setting compensation according to the labor markets in the countries where the employees live and work? What are some advantages and disadvantages of setting compensation according to the labor market in the company's headquarters? Would the best arrangement be different for the company's top executives and its production workers? Explain.
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Intel's Location Decisions Unlike many electronics businesses, Intel, the world's largest semiconductor company, does most of its manufacturing in the United States. Nevertheless, Intel is an international business. The company fabricates microprocessors and chip sets in the United States (in Oregon, Arizona, Massachusetts, and New Mexico), Israel, China, and Ireland. Then employees complete the assembly of the microprocessors and test them at Intel's seven assembly test facilities in China, Malaysia, Vietnam, and Costa Rica. Intel also has sales and research facilities around the world, with locations in 46 countries. Most companies that make microchips have located their manufacturing facilities outside the United States; only about 16% of the manufacturing capacity is within U.S. borders. The main reason is not the cost of labor, although overseas manufacturing is cheaper. Rather, lower tax rates, sophisticated distribution channels, and a large supply of skilled workers make overseas locations attractive. Intel seeks an advantage by building exceptionally sophisticated plants and locating them near its research and development experts. Its most recent addition is Fab 42, a factory being built in Chandler, Arizona, expected to be the most advanced microchip fabrication plant ever built. Fabrication involves etching integrated circuits onto silicon wafers, which are then cut up into individual microchip. The larger the wafer the process starts with, the more efficient the manufacturing process. Several companies are making microprocessors from wafers that measure 300 millimeters on each side; Fab 42 will be one of only a few plants that work with 450-millimeter wafers. Intel will also gain an efficiency advantage by building Fab 42 as an expansion of an existing facility in Arizona, which is cheaper than starting up a new facility from scratch. Since Intel also has facilities in China, Ireland, and Israel, future manufacturing expansion could occur there as well. Intel's managers say they would be more likely to keep building in the United States if the government would lower its corporate tax rates and speed up the approval process for new construction, and if U.S. colleges would prepare more engineers to feed the company's need for talent. In contrast to manufacturing, research and development for microchips mainly takes place in the United States. However, industrywide, the share of R D in the United States is declining relative to the R D growth in Europe, Israel, and Singapore. The sharpest decline in the United States is R D related to making the chips. Intel hires its R D talent from around the world to stay at the forefront in its fast-changing industry. One challenge with a global R D workforce is how to get employees to share ideas and motivate one another. Intel recently tackled that problem by bringing together 1,000 of its researchers from 22 countries to attend a TechFest in the Oregon Convention Center, near Intel's most advanced operations. During the weeklong event, the researchers attended lectures as well as social events where they could build professional relationships and learn about one another's work. In general, how can Intel's HRM professionals support the company's strategy of locating the majority of its fabrication plants in the United States?
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Suppose you work in the HR department of a company that is expanding into a country where the law and culture make it difficult to lay off employees. How should your knowledge of that difficulty affect human resource planning for the overseas operations?
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BP Australasia's Sustainable Workforce Oil giant BP has more than 83,000 employees in 30 countries; 5,000 of those employees work in Australia. The Australian employees "work well together," notes their boss, Paul Waterman, the president of BP Australasia. Waterman, who is originally from Michigan and has held various positions with BP around the world, notes several distinctive qualities of the Australian workforce. Compared with Americans, the Australians are quicker to comply with requirements, but less driven by their work. BP Australasia is growing, and it readily attracts new talent. However, retaining employees can be difficult because a strong mining industry in Australia competes for experienced workers. To keep employees, BP focuses on combining training, work assignments, and career management that will help employees see and follow an attractive career path. BP also tries to ensure that its compensation package is attractive relative to the competition. BP Australasia seeks the broadest talent pool and excellent employee retention by valuing diversity. According to Waterman, ethnic and gender diversity is a newer concept to Australian culture than in the United States, so many employees are just grasping its importance. This is a significant challenge. Many companies are surprised when they roll out diversity training to their international operations and discover that the programs don't work because they are not speaking to the issues faced by employees in other cultures. For example, gender roles differ from one part of the world to another, and race is not a major issue in many parts of the world. Ethnic identity plays a role in most cultures, but its meaning differs in a homogeneous country such as Japan, a culture with much immigration such as the United States, and a country where immigration is seen by some people as compromising national identity, as in France. Sexual orientation is accepted as a concern for diversity training in much of the West, but is a sensitive issue elsewhere. The United States, in contrast, tends to downplay diversity in terms of social class, but in some parts of the world, that is a major component of diversity. In Australia, one measure of which issues are important for valuing diversity is the legal environment. Laws in Australia promote employment opportunity for women. The Workplace Gender and Equality Act requires that companies with at least 100 employees create a workplace gender equity plan and prepare reports detailing the participation rates of men and women, as well as the availability of flexible work practices. Australian employers are required by law to consider employees' requests for flexible work arrangements if the employees are responsible for children under the age of 18 or with a disability. The Australian government also has created a plan for paid parental leave for primary caregivers of children born or adopted after January 1, 2011. Employees can receive up to 18 weeks of leave at the national minimum wage. BP Australasia is committed to more than just meeting legal requirements. The company in 2009 established a five-year plan for ensuring an organization that is diverse and inclusive. The company conducts an annual analysis of its pay to ensure parity for male and female employees, and it sets targets for increasing the number of women in managerial and executive positions. In filling its leadership development program, it ensures that at least half the participants are women. Benefits include generous maternity leave that offers half pay for up to eight months, as well as flexible work arrangements and an affinity network for part-time workers. With measures such as these, BP Australasia was recently named an Employer of Choice for Women for the second year in a row by an organization called Equal Employment for Women Australia. More significantly for the business, Waterman notes that the number of women applying for technical jobs at BP has been rising-a sign that efforts to be inclusive are attracting a wider pool of talent. One woman who has risen through the ranks at BP Australasia is Brooke Miller, the company's chief financial officer. Before joining BP, Miller was a landscape architect who wanted a career in a major corporation. She was interested in how businesses make investment decisions, and she made a point to learn as much as she could as she took on management jobs. This, coupled with BP's formal training programs, enabled Miller to learn enough about financial structures and reporting to become CFO after 12 years. Which of BP Australasia's diversity initiatives would be effective in the United States?
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CAN OFFSHORING BE DONE MORE ETHICALLY? As we saw in Chapter 5, human resource planning involves several options to meet an organization's needs for talent. One option is to outsource activities that can be performed more effectively and efficiently by a contractor. In today's global marketplace, outsourcing decisions frequently involve offshoring activities to companies in lower-wage locations. However, the reasons why labor costs are lower in another country include lower standards for working conditions-even conditions that would be considered unethical in the parent country. As a result, this kind of decision can open up a company to criticism, as Apple has faced with regard to its contractors in China. Apple's employees develop and market new products, but manufacturing of iPhones, iPads, and other products is done by contractors in China. The largest of these is Foxconn, a manufacturer of consumer electronics sold under other companies' brands. Foxconn has been criticized for permitting unsafe working conditions, including the accumulation of aluminum dust thought to have caused two serious explosions in its factories. Foxconn workers have reported working long shifts, as long as 12 hours a day, six days a week, some of them standing throughout their work shifts. Apple is the customer, not the owner, of these facilities, but it tries to exert influence. It has developed a supplier code of conduct laying out standards that contractors must meet in order for Apple to continue buying from them. Suppliers are expected to provide safe working conditions, hire fairly, treat workers with dignity, and follow environmentally responsible practices. Apple sends auditors to visit the factories to check that suppliers are meeting the standards in the code of conduct. It publishes supplier responsibility reports that detail how well the suppliers are meeting the standards. Since Apple began keeping records in 2007, however, more than half of its suppliers have violated at least one requirement every year. Typical problems include employees working more than 60 hours per week; other problems have included using underage workers, paying less than minimum wage, and violating safety requirements. Apple insists that each violation be corrected, and it notes that contractors are showing improvement each year. But former managers of Apple and the China factories have claimed that Apple expresses far more interest in the cost, quality, and speedy delivery of its products than in the working conditions of the people making them. Apple insists that it meets and in some areas exceeds the standards for its industry. What ethical standards for human resource management do you think a company should require from all its operations worldwide? In what areas of HRM, if any, should ethical standards be relaxed to match the prevailing norms of a particular country?
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Identify the parent country, host country (ies), and third country (ies) in the following example: A global soft-drink company called Cold Cola has headquarters in Atlanta, Georgia. It operates production facilities in Athens, Greece and in Jakarta, Indonesia. The company has assigned a manager from Boston to head the Athens facility and a manager from Hong Kong to manage the Jakarta facility.
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Suppose an organization decides to improve collaboration and knowledge sharing by developing an intranet to link its global workforce. It needs to train employees in several different countries to use this system. List the possible cultural issues you can think of that the training program should take into account.
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How to Recruit a Public Outcry British Prime Minister David Cameron learned the hard way that sometimes only a local candidate will do. The British police had been rocked by scandal and scathing criticism. The department had responded ineffectively to rioting in London in the summer of 2011, and the police department was mixed up in the scandal in which News Corporation reporters arranged to hack into the phones of public figures. Looking for someone to lead an overhaul of the police department, Cameron looked across the Atlantic and saw someone with major accomplishments: Bill Bratton. Bratton headed the police departments in Boston, Los Angeles, and New York City. His accomplishments included leading those organizations as they restored morale and reduced crime in each city. Based on those successes, Cameron believed Bratton could help the department rein in gang violence and soothe racially based tensions as commissioner of the London Metropolitan Police. So praising Bratton's experience and knowledge, he invited the retired commissioner, now a security consultant, to come work for the British government. Bratton was intrigued by the offer, but the British public was appalled, as were the British police unions. One detective was quoted calling the choice "a sad indictment of what the government thinks of our senior officers in this country." Britain's Home Secretary pointed out that the London police commissioner is also responsible for national security and there should be a British citizen in the position. Prime Minister Cameron opted to work with Bratton as a consultant instead. Should recruiting always aim to find the person whose talents and experience are the best match for a position, or should some jobs be reserved for locals? Why?
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BP Australasia's Sustainable Workforce Oil giant BP has more than 83,000 employees in 30 countries; 5,000 of those employees work in Australia. The Australian employees "work well together," notes their boss, Paul Waterman, the president of BP Australasia. Waterman, who is originally from Michigan and has held various positions with BP around the world, notes several distinctive qualities of the Australian workforce. Compared with Americans, the Australians are quicker to comply with requirements, but less driven by their work. BP Australasia is growing, and it readily attracts new talent. However, retaining employees can be difficult because a strong mining industry in Australia competes for experienced workers. To keep employees, BP focuses on combining training, work assignments, and career management that will help employees see and follow an attractive career path. BP also tries to ensure that its compensation package is attractive relative to the competition. BP Australasia seeks the broadest talent pool and excellent employee retention by valuing diversity. According to Waterman, ethnic and gender diversity is a newer concept to Australian culture than in the United States, so many employees are just grasping its importance. This is a significant challenge. Many companies are surprised when they roll out diversity training to their international operations and discover that the programs don't work because they are not speaking to the issues faced by employees in other cultures. For example, gender roles differ from one part of the world to another, and race is not a major issue in many parts of the world. Ethnic identity plays a role in most cultures, but its meaning differs in a homogeneous country such as Japan, a culture with much immigration such as the United States, and a country where immigration is seen by some people as compromising national identity, as in France. Sexual orientation is accepted as a concern for diversity training in much of the West, but is a sensitive issue elsewhere. The United States, in contrast, tends to downplay diversity in terms of social class, but in some parts of the world, that is a major component of diversity. In Australia, one measure of which issues are important for valuing diversity is the legal environment. Laws in Australia promote employment opportunity for women. The Workplace Gender and Equality Act requires that companies with at least 100 employees create a workplace gender equity plan and prepare reports detailing the participation rates of men and women, as well as the availability of flexible work practices. Australian employers are required by law to consider employees' requests for flexible work arrangements if the employees are responsible for children under the age of 18 or with a disability. The Australian government also has created a plan for paid parental leave for primary caregivers of children born or adopted after January 1, 2011. Employees can receive up to 18 weeks of leave at the national minimum wage. BP Australasia is committed to more than just meeting legal requirements. The company in 2009 established a five-year plan for ensuring an organization that is diverse and inclusive. The company conducts an annual analysis of its pay to ensure parity for male and female employees, and it sets targets for increasing the number of women in managerial and executive positions. In filling its leadership development program, it ensures that at least half the participants are women. Benefits include generous maternity leave that offers half pay for up to eight months, as well as flexible work arrangements and an affinity network for part-time workers. With measures such as these, BP Australasia was recently named an Employer of Choice for Women for the second year in a row by an organization called Equal Employment for Women Australia. More significantly for the business, Waterman notes that the number of women applying for technical jobs at BP has been rising-a sign that efforts to be inclusive are attracting a wider pool of talent. One woman who has risen through the ranks at BP Australasia is Brooke Miller, the company's chief financial officer. Before joining BP, Miller was a landscape architect who wanted a career in a major corporation. She was interested in how businesses make investment decisions, and she made a point to learn as much as she could as she took on management jobs. This, coupled with BP's formal training programs, enabled Miller to learn enough about financial structures and reporting to become CFO after 12 years. What are some challenges Waterman faces as a Michigan-born executive leading an Australian company?
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CAN OFFSHORING BE DONE MORE ETHICALLY? As we saw in Chapter 5, human resource planning involves several options to meet an organization's needs for talent. One option is to outsource activities that can be performed more effectively and efficiently by a contractor. In today's global marketplace, outsourcing decisions frequently involve offshoring activities to companies in lower-wage locations. However, the reasons why labor costs are lower in another country include lower standards for working conditions-even conditions that would be considered unethical in the parent country. As a result, this kind of decision can open up a company to criticism, as Apple has faced with regard to its contractors in China. Apple's employees develop and market new products, but manufacturing of iPhones, iPads, and other products is done by contractors in China. The largest of these is Foxconn, a manufacturer of consumer electronics sold under other companies' brands. Foxconn has been criticized for permitting unsafe working conditions, including the accumulation of aluminum dust thought to have caused two serious explosions in its factories. Foxconn workers have reported working long shifts, as long as 12 hours a day, six days a week, some of them standing throughout their work shifts. Apple is the customer, not the owner, of these facilities, but it tries to exert influence. It has developed a supplier code of conduct laying out standards that contractors must meet in order for Apple to continue buying from them. Suppliers are expected to provide safe working conditions, hire fairly, treat workers with dignity, and follow environmentally responsible practices. Apple sends auditors to visit the factories to check that suppliers are meeting the standards in the code of conduct. It publishes supplier responsibility reports that detail how well the suppliers are meeting the standards. Since Apple began keeping records in 2007, however, more than half of its suppliers have violated at least one requirement every year. Typical problems include employees working more than 60 hours per week; other problems have included using underage workers, paying less than minimum wage, and violating safety requirements. Apple insists that each violation be corrected, and it notes that contractors are showing improvement each year. But former managers of Apple and the China factories have claimed that Apple expresses far more interest in the cost, quality, and speedy delivery of its products than in the working conditions of the people making them. Apple insists that it meets and in some areas exceeds the standards for its industry. In deciding whether to outsource functions, does an organization such as Apple have an ethical obligation to consider how workers will be treated by the contractor that hires those workers? Why or why not?
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BP Australasia's Sustainable Workforce Oil giant BP has more than 83,000 employees in 30 countries; 5,000 of those employees work in Australia. The Australian employees "work well together," notes their boss, Paul Waterman, the president of BP Australasia. Waterman, who is originally from Michigan and has held various positions with BP around the world, notes several distinctive qualities of the Australian workforce. Compared with Americans, the Australians are quicker to comply with requirements, but less driven by their work. BP Australasia is growing, and it readily attracts new talent. However, retaining employees can be difficult because a strong mining industry in Australia competes for experienced workers. To keep employees, BP focuses on combining training, work assignments, and career management that will help employees see and follow an attractive career path. BP also tries to ensure that its compensation package is attractive relative to the competition. BP Australasia seeks the broadest talent pool and excellent employee retention by valuing diversity. According to Waterman, ethnic and gender diversity is a newer concept to Australian culture than in the United States, so many employees are just grasping its importance. This is a significant challenge. Many companies are surprised when they roll out diversity training to their international operations and discover that the programs don't work because they are not speaking to the issues faced by employees in other cultures. For example, gender roles differ from one part of the world to another, and race is not a major issue in many parts of the world. Ethnic identity plays a role in most cultures, but its meaning differs in a homogeneous country such as Japan, a culture with much immigration such as the United States, and a country where immigration is seen by some people as compromising national identity, as in France. Sexual orientation is accepted as a concern for diversity training in much of the West, but is a sensitive issue elsewhere. The United States, in contrast, tends to downplay diversity in terms of social class, but in some parts of the world, that is a major component of diversity. In Australia, one measure of which issues are important for valuing diversity is the legal environment. Laws in Australia promote employment opportunity for women. The Workplace Gender and Equality Act requires that companies with at least 100 employees create a workplace gender equity plan and prepare reports detailing the participation rates of men and women, as well as the availability of flexible work practices. Australian employers are required by law to consider employees' requests for flexible work arrangements if the employees are responsible for children under the age of 18 or with a disability. The Australian government also has created a plan for paid parental leave for primary caregivers of children born or adopted after January 1, 2011. Employees can receive up to 18 weeks of leave at the national minimum wage. BP Australasia is committed to more than just meeting legal requirements. The company in 2009 established a five-year plan for ensuring an organization that is diverse and inclusive. The company conducts an annual analysis of its pay to ensure parity for male and female employees, and it sets targets for increasing the number of women in managerial and executive positions. In filling its leadership development program, it ensures that at least half the participants are women. Benefits include generous maternity leave that offers half pay for up to eight months, as well as flexible work arrangements and an affinity network for part-time workers. With measures such as these, BP Australasia was recently named an Employer of Choice for Women for the second year in a row by an organization called Equal Employment for Women Australia. More significantly for the business, Waterman notes that the number of women applying for technical jobs at BP has been rising-a sign that efforts to be inclusive are attracting a wider pool of talent. One woman who has risen through the ranks at BP Australasia is Brooke Miller, the company's chief financial officer. Before joining BP, Miller was a landscape architect who wanted a career in a major corporation. She was interested in how businesses make investment decisions, and she made a point to learn as much as she could as she took on management jobs. This, coupled with BP's formal training programs, enabled Miller to learn enough about financial structures and reporting to become CFO after 12 years. What differences do you see between HRM at BP Australasia and in a U.S. organization?
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What are some HR challenges that arise when a U.S. company expands from domestic markets by exporting? When it changes from simply exporting to operating as an international company? When an international company becomes a global company?
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Why do multinational organizations hire host-country nationals to fill most of their foreign positions, rather than sending expatriates for most jobs?
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Intel's Location Decisions Unlike many electronics businesses, Intel, the world's largest semiconductor company, does most of its manufacturing in the United States. Nevertheless, Intel is an international business. The company fabricates microprocessors and chip sets in the United States (in Oregon, Arizona, Massachusetts, and New Mexico), Israel, China, and Ireland. Then employees complete the assembly of the microprocessors and test them at Intel's seven assembly test facilities in China, Malaysia, Vietnam, and Costa Rica. Intel also has sales and research facilities around the world, with locations in 46 countries. Most companies that make microchips have located their manufacturing facilities outside the United States; only about 16% of the manufacturing capacity is within U.S. borders. The main reason is not the cost of labor, although overseas manufacturing is cheaper. Rather, lower tax rates, sophisticated distribution channels, and a large supply of skilled workers make overseas locations attractive. Intel seeks an advantage by building exceptionally sophisticated plants and locating them near its research and development experts. Its most recent addition is Fab 42, a factory being built in Chandler, Arizona, expected to be the most advanced microchip fabrication plant ever built. Fabrication involves etching integrated circuits onto silicon wafers, which are then cut up into individual microchip. The larger the wafer the process starts with, the more efficient the manufacturing process. Several companies are making microprocessors from wafers that measure 300 millimeters on each side; Fab 42 will be one of only a few plants that work with 450-millimeter wafers. Intel will also gain an efficiency advantage by building Fab 42 as an expansion of an existing facility in Arizona, which is cheaper than starting up a new facility from scratch. Since Intel also has facilities in China, Ireland, and Israel, future manufacturing expansion could occur there as well. Intel's managers say they would be more likely to keep building in the United States if the government would lower its corporate tax rates and speed up the approval process for new construction, and if U.S. colleges would prepare more engineers to feed the company's need for talent. In contrast to manufacturing, research and development for microchips mainly takes place in the United States. However, industrywide, the share of R D in the United States is declining relative to the R D growth in Europe, Israel, and Singapore. The sharpest decline in the United States is R D related to making the chips. Intel hires its R D talent from around the world to stay at the forefront in its fast-changing industry. One challenge with a global R D workforce is how to get employees to share ideas and motivate one another. Intel recently tackled that problem by bringing together 1,000 of its researchers from 22 countries to attend a TechFest in the Oregon Convention Center, near Intel's most advanced operations. During the weeklong event, the researchers attended lectures as well as social events where they could build professional relationships and learn about one another's work. Intel's managers mentioned some challenges of expanding production within the United States. What HRM challenges would you expect the company to face if, instead, it expanded in China or Israel, where it also has facilities?
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Priciest Cities Are Spread over Three Continents Expatriates spend more for housing, transportation, food, clothing, and other living expenses in Luanda, Angola, than in any other major city, according to a survey by Mercer Human Resources Consulting. In recent years, Asian cities dominated the top five, but in the most recent survey, two of the most expensive cities are in Africa, and only two (counting Russia) are in Asia. Rankings are influenced by the relative value of national currencies, as well as by political strife and natural disasters. The least expensive city among those studied was Karachi, Pakistan, where security concerns have reduced the demand for housing. Mercer's list of the 50 most expensive cities includes only one city in North America: New York, ranked number 32. Why might an organization choose to locate a facility in one of the most expensive cities, in spite of the higher costs? img
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Besides cultural differences, what other factors affect human resource management in an organization with international operations?
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Intel's Location Decisions Unlike many electronics businesses, Intel, the world's largest semiconductor company, does most of its manufacturing in the United States. Nevertheless, Intel is an international business. The company fabricates microprocessors and chip sets in the United States (in Oregon, Arizona, Massachusetts, and New Mexico), Israel, China, and Ireland. Then employees complete the assembly of the microprocessors and test them at Intel's seven assembly test facilities in China, Malaysia, Vietnam, and Costa Rica. Intel also has sales and research facilities around the world, with locations in 46 countries. Most companies that make microchips have located their manufacturing facilities outside the United States; only about 16% of the manufacturing capacity is within U.S. borders. The main reason is not the cost of labor, although overseas manufacturing is cheaper. Rather, lower tax rates, sophisticated distribution channels, and a large supply of skilled workers make overseas locations attractive. Intel seeks an advantage by building exceptionally sophisticated plants and locating them near its research and development experts. Its most recent addition is Fab 42, a factory being built in Chandler, Arizona, expected to be the most advanced microchip fabrication plant ever built. Fabrication involves etching integrated circuits onto silicon wafers, which are then cut up into individual microchip. The larger the wafer the process starts with, the more efficient the manufacturing process. Several companies are making microprocessors from wafers that measure 300 millimeters on each side; Fab 42 will be one of only a few plants that work with 450-millimeter wafers. Intel will also gain an efficiency advantage by building Fab 42 as an expansion of an existing facility in Arizona, which is cheaper than starting up a new facility from scratch. Since Intel also has facilities in China, Ireland, and Israel, future manufacturing expansion could occur there as well. Intel's managers say they would be more likely to keep building in the United States if the government would lower its corporate tax rates and speed up the approval process for new construction, and if U.S. colleges would prepare more engineers to feed the company's need for talent. In contrast to manufacturing, research and development for microchips mainly takes place in the United States. However, industrywide, the share of R D in the United States is declining relative to the R D growth in Europe, Israel, and Singapore. The sharpest decline in the United States is R D related to making the chips. Intel hires its R D talent from around the world to stay at the forefront in its fast-changing industry. One challenge with a global R D workforce is how to get employees to share ideas and motivate one another. Intel recently tackled that problem by bringing together 1,000 of its researchers from 22 countries to attend a TechFest in the Oregon Convention Center, near Intel's most advanced operations. During the weeklong event, the researchers attended lectures as well as social events where they could build professional relationships and learn about one another's work. How can they support the strategy of locating marketing and research employees around the world?
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