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Development of a Multinational Personnel System

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Development of a Multinational Personnel System
ORGANIZATIONAL BEHAVIOR & LEADERSHIP

CASE STUDY: DEVELOPMENT OF A MULTINATIONAL PERSONNEL SELECTION SYSTEM

ABOUT THE COMPANY:
ComInTec AG & Co. is a worldwide leading industrial company that has administration, plants, and sales offices in various regions across the globe, mainly Central, Eastern and Western Europe, Asia-Pacific region (APAC), North America, Central and South America. In 2006 they had 23,000 employees worldwide and gross revenue of 5.8 billion Euros in sales. They had recovered well from the worldwide crisis (recession) that had earlier forced the company to opt for downsizing procedures between 2003 and 2006, resulting in the cut of 900 jobs worldwide. The global headquarter of the company is situated in Munich, Germany. Each region had its own headquarter which reports to the global headquarter in Germany. The headquarter for the APAC region is in Hong Kong.

Current Situation
ComInTec, is in the process of global restructuring, and as a result, requires 25 middle management positions to be filled in the APAC region. Few of these positions included Regional head of Purchasing, National CEOs, National head of Finance and Accounting etc. among other various positions. This requires a new ‘Personnel Selection System’ to be developed. The responsibility of designing of this Personnel Selection System, and its implementation has been handed to the HR ‘Project Team’ in APAC headquarter. In addition, the Project team is required to keep in mind the Company’s in-house global localization policy, which states that 90% of the new management positions were to be filled by individuals originating from the country they would be working in. Furthermore, the salaries were to be designed based on the country/location, with the annual salary for the managers to range in between €40,000 and €150,000. The objective of internally having to design and implement a new Personnel Selection System was part of the Company’s long-term plan to standardize all HR

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