CASE STUDY: INTERNATIONAL HUMAN RESOURCE MANAGEMENT

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International

Human

Resource Management

Assignment

(PROFESSOR CLIFF LOCKYER)

GROUP NO. 7



EXECUTIVE SUMMARY

The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.

Our firm has set out to Internationalise its operations by opening to different facilities One in China Assembling and Maintaining Aircraft Engines and the other in Europe fabricating turbine blades for Aircraft engines.

We have shown in the case of China the key strategies required for Organisational success and we have identified that success in China is assured if the Firm can get its strategy of Recruitment and Retention right. We have also identified that expatriate managers which are core to the operations of the facility must have a fit with the Chinese environment and as Internationally mobile employees must have an indepth understanding of the cultural and societal norms of the Chinese people thus be enabled to manage employees to achieve success.

In locating our facility in China, we chose to locate it the Shanghai area as this area is key to the aviation industry of China and has an abundance of Key Skilled and Competent people even though these people are in short supply. We have articulated a strategy for ensuring commitment and loyalty from our staff.

Our Europe facility is located in the UK. We have identified the UK as a suitable location because of the abundance of the required technical skills as well as the flexible and business friendly labour laws. Even though the cost of labour is higher than some Eastern European countries, we believe that this is overshadowed by the quality of the work we would get, access to the global markets as well as the stability of the UK which is essential to the aircraft industry as delays on orders leads to very losses for all concerned in the Industry.

The UK's tax structure for business is also less stringent than comparable European economies and Airbus Industries with its main factories in France is much closer to the UK than most Eastern European countries.

The issues we identified with Human Resourcing in the UK is mostly in the area of ensuring Equal Opportunities and Union/Labour Relations. The UK has very strong Unions and the laws allow the formation of Unions for willing employees thus managing this strong Unions will be one key task for HR Managers in the UK facility.

We have shown in the two facilities that HR is an integral part of the organisation structure as its strategic inputs are required to guide organisational direction, visions and strategy.



AEROPLANE ENGINE ASSEMBLY AND MAINTENANCE FACILITY

INTRODUCTION

The Peoples Republic of China is a one party state with Power centralised in the Chinese Communist Party. Though a Communist state their have been significant capitalist models applied in the certain areas of National development mainly the Economic, Industrial and Financial sectors. This liberalization of certain sectors has led to substantial growth in the Chinese economy with average "Real GDP growth rates of 10% between 2001 and 2006" (Source: Global Insight, 2007).

The "Open Door Policy" adopted by China in 1979 has brought about enormous growth in the industrial output as well as the economy as a whole. As the country moved away from its "iron rice bowl" system consisting of state-owned enterprises and "lifetime" workers, various types of employment contractual agreements have begun. The past two decades have witnessed the rapid growth of Chinese and foreign owned multinational enterprises which are set to play an increasingly important role in the future of the global...
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