Scenario 3.1
Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce. Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers. When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.
-Refer to Scenario 3.1. Which of the domestic human resource issues is most likely affected (i.e., different at Marstrand than at Mini-PC) by conditions described in the scenario?
A) Local compensation issues
B) Local selection issues
C) Local training issues
D) Local recruiting issues
E) Local development issues

Question

Quizplus · Accepted Answer

The conditions described in the scenario, such as the high percentage of unionized workers, the expectation of at least two months of vacation per year, and the socialist approach to health benefits are likely to affect local compensation issues at Marstrand. Mini-PC may need to adjust their compensation and benefits packages to align with the Swedish labor laws and union agreements.

Additionally, the cultural differences between the United States and Sweden, particularly in individualism and uncertainty avoidance, may also affect the local recruiting issues at Marstrand. The company may need to modify their recruitment strategies and job offerings to attract and retain Swedish workers who may have different values and expectations than their American counterparts.

Scenario 3.1 Mini-PC Is a Houston-Based Maker of Handheld Computers. in Response