IHRM Homework 10.12.12 MPS
1 Diagnose and prioritise what you see to be the crucial IHRM for Jim issues.
Medical Precision Systems (from now on MPS) have a HR strategy with the intentions of gaining strong control over its subsidiaries through the extensive use of expatriate managers in both technical and managerial areas of the business. Expatriate managers have been told to try to keep the unions out or to ensure that they have a minimal influence. The main issue with MPS IHR strategy is that they are using an ethnocentric approach where they export their HR strategy to foreign countries. It's different working environment, culture and mentality between the local subsidiaries' workforce and its American managers. These differences result in demotivation and unwillingness in the workforce. It's important to take these differences to consideration when trying to adapt an IHR strategy from one country to another. There are also some "miner" issues that are a consequence of using a IHR strategy who don't take cultural differences in to consideration. One of MPS strategy is to minimize the number of unions and their influence; unions are in many countries of Europe the most important safeguards for the employees. To try to remove the unions influence can be looked as attempt to under build the employees rights, as in the UK example this was taken very negative. Also Sweden is a country with long and strong union tradition. Also the fact that they are using extractive managers can be a problem, because these managers don't know a lot about the culture in the specific country, this can end up in a situation with many problems regarding communication and differences in mentality. This can end up in a "we against them" situations if these differences aren’t handled in the right way. Especially in France have they had problems with manager style and a workforce who don't understand why things are run as they are.
2. Draft an option