Manners Europe

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Human Resource Strategies for the
International Manager

4HRM7C7

Module leader: Dr. Francesca Andreescu

Topic: Manners Europe

By:
Name: Venkatesh Teja Kotrike
Student Id: w14087442
By:
Name: Venkatesh Teja Kotrike
Student Id: w14087442

CONTENTS

Executive Summary3
Introduction4
Background4
Findings and Analyses5
National Culture5
Organizational Culture6
Motivation7
Recruitment and HR planning7
Communication8
Management Style9
Training9
Recommendations10
References12

Executive Summary

Human Resource is an important function performed in organizations to ensure employee satisfaction. The importance of HR is growing, especially in organizations operating in more than one nation. This report looks into the HR problems of Manners Europe, an American company operating in Europe. The problems were analysed based on a case study. In addition, various theoretical models had been used to study the problems. The theories used include Hofstede’s five-dimension model, Handy’s culture model, Hall’s model on communication and Theory X-Y model. Based on the study made, recommendations that are most likely to solve the company’s problems are mentioned. The most important of them being Cross-culture training of top management, Rewards, Adapting to the Dutch culture, Human Resource Planning, Communication, Alternative to bonus, Employee training being the others.

Introduction

According to Hofstede “Human Resource Management is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization” (Hofstede, 1984). This function is less complicated if an organization has only domestic operations. The rising competition has forced companies to increase their presence in the market. Due to its high potential and never-ending benefits, Globalisation is one of the measures taken by many organizations to increase their presence.

As companies globalise, the need for International Human Resource Management is increasing. Dissimilar interests, contradictory ideas and diverse culture are likely to be the characteristics of the workforce in a multinational company. Though the world is becoming a global village and dissimilarities among people are reducing internationally, MNCs should still adapt to the host country’s culture to ensure success. Organizations should customize some of their polices, to ensure that the interests of their new employees are not ignored.

While entering a country business enterprises tend to face a lot of barriers. An enterprise successful in its home country is not guaranteed success while internationalising. Global retail giant WalMart withdrew its operations from the $370 billion German market in 2006, after its long-term failure (Brewster et al., 2011). This is a clear demonstration of a global leader’s inability to absorb an opportunity. Companies have to overcome these barriers to ensure success. Human Resources concerning areas such as culture, management style and government regulation are some of them. The American firm Manners Europe has been facing similar problems, since its establishment in Netherlands.

Background

Manners is an American organization dealing in lumber and forest-related products. The company has established its subsidiaries in Netherlands and Belgian. Like other trans-national companies, Manners has been facing a number of problems in its European subsidiaries. Mr.Tom Steiger, Director of Finance and Mr.John William, Managing Director were the only two American employees in Manners Europe, the European subsidiary of Manners.

The HR problems contributed to the not-so-efficient performance of Manners Europe. The divergence in European and American cultures is one of the major factors that led to inefficiency in the company. The European labour market is characterised by higher government interference, stricter legislation and more...
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