International Human Resources (BUSM 2449)
Case Study 2: Quality Compliance at the Hawthorn Arms
Stefan Manojlović s3330309
The practices involved within human resource management, have increasingly been recognized as a foundation for achieving sustained competitive success, especially for organisations operating in highly competitive and increasingly diverse international environments (1). Within these foreign settings, utmost importance is placed on the need to reduce risks and uncertainties: The hiring of expatriates to control and lead these cross-border ventures is widely viewed as the most logical solution to the problems that may be encountered abroad. The dilemma highlighted by the case study, ‘Quality Compliance at the Hawthorn Arms’, involves the appointment of a new quality compliance manager at their recently set up firm in Hungary that needs to be done by Trianon’s director of personnel development. The director needs to take into account the risks and uncertainties involved, the interests of the company itself, and the socio-cultural and technical abilities of the potential employee in making their decision. The recruitment and selection process of Trianon must fit within best practices and must also take into account the strategic needs of the company by creating and describing the job description and the selection methods to be used.
Consider the three candidates in Exhibit A below. If forced to make a decision tomorrow, which candidate should Alistair choose for the job? What major factors should determine his choice?
A major process within human resource management is staffing. The importance of selecting the right employee for the job cannot be underestimated, especially when a firm’s future successes in a new environment depend on the right staffing decisions being made. Over the course of globalization, the strategic importance placed on alliances has increased significantly (2). Whether they are mergers and acquisitions, or international joint ventures, the role of human resource management is crucial for both types of alliances to succeed in meeting their strategic goals. As one of their major processes are to select the most qualified applicants, if any mismatches were too occur, the effectiveness of other human resource management functions may diminish, which is why so much importance is placed on hiring the correct people.
The case study, ‘Quality Compliance at the Hawthorn Arms’, details three candidates that were short listed for the position of quality compliance manager. These 3 candidates were; Marie Erten-Loiseau, a parent-country national from France, Janos Gabor, a host-country national from Hungary, and Sinead Marrinan-McGuire, a third-country national from Ireland. The proposed role of quality compliance manager is to be based in Hungary, working for the recently set up joint venture between Trianon, an Anglo-French avionics firm and a local firm backed by the Hungarian government, for a period of 3 years. If, as stated in the case study, the decision is to be made tomorrow, several factors and theories must be investigated in order to determine which potential candidate is the most qualified for the position.
Firstly, it must be determined why the international transfer of managers occurs. Herzing (3), observed a few main reasons that companies decided upon this particular transfer. First and foremost, the transfer itself fills a position, which concerns itself with the manager’s ability to transfer their technical knowledge to developing countries, where the locals may not be qualified. Secondly, it gives the manager a chance to gain international experience and help develop them for future tasks that may concern the company, or it’s subsidiaries, abroad. Thirdly, the final goal is not individual development but organizational development, transfers that are used to change or maintain the structure of the firm, and decision-making processes of the...
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