MMN630222 International Approaches to Managing People Assignment Brief 2023-24

Assignment Question And Module Learning Outcomes

The essay takes an ‘applied’ approach. This means you are expected to engage with theoretical concepts and academic studies to inform International  Human Resource Management strategy and practice. In this way, you should be able to develop your consultancy skills, adding value to the organizations you (will) work for. You should imagine that you are acting as an HR Consultant for a global organization that wants to implement its own specific HR practice in a foreign subsidiary. Your task is to critically discuss, analyze, and evaluate strategic options and come up with recommendations. There are three different global organizations to choose from, each with its own specific issues and parameters: MNCB, MNCC, and  MNCD (See Appendix 1). You must choose ONE of the case studies (MNCB,  MNCC, or MNCD) to answer and address the specific issues noted in that case study only. 

• Why there appear to be differences between a Headquarters’ HR practice and  the expectations/preferences of the host country subsidiary; 
• Whether or not the Headquarters can or should continue to impose their HR  practice on the subsidiary; 
• Whether the Headquarters should adjust its HR practice to the host country  subsidiary expectations and to what extent; 
• And what international or global standards of HR practice require to be considered. 

Case Study Choice 1: Employee Voice at MNCB 

MNCB is a manufacturing business based in Germany, specializing in the making of engineering and technology components. In the early 2020s, MNCB decided to expand its business to Africa, Asia and the United States in order to tap into their growing and skilled labor markets. The company established subsidiaries in the capitals of major countries throughout Africa and Asia, as well as in Seattle. To assist in the expansion, parent country nationals (PCNs) were sent from the Headquarters in Munich to manage each of the subsidiaries’ main offices abroad.  

MNCB’s approach to employee relations is based on a strong European tradition of collective representation, democracy, and employee voice. Its employment relations (ER) system is highly regulated by both trade unions and works councils. In Germany, although trends are shifting, trade unions are still prevalent in the manufacturing, building, and transport sectors,  and MNCB is a member of an employers’ association that engages in collective bargaining for the manufacturing sector. MNCB also has a works council which is elected and which plays a major role in the everyday life of the business. The works council has information,  consultation, and co-determination rights in the areas of hiring, positioning, dismissals, the internal organization of the business, restructuring, and workforce planning (amongst other things). MNCB, as the employer, comes together with the works council to formwork agreements that regulate the affairs of the business - except working time and remuneration which are reserved for collective agreements with the trade union. The works council may not call industrial action, but in case of any dispute, the trade union can. 

Unfortunately, MNCB has faced various challenges in trying to engage in employee voice mechanisms with the Host Country Nationals (HCNs) at the subsidiary offices. Some resistance to trade unions and works councils has surfaced, as well as a reticence of employees to exercise their voice within the expected channels. MNCB is unsure why there appear to be differences between its own ER framework and the expectations of the HCNs,  whether or not it can or should continue to impose the MNCB ER framework on the HCNs,  whether it should adjust its ER framework to HCN expectations and to what extent, and what international employment rights and/or standards require to be considered. 

Focusing on the subsidiary in one country only (please choose one country from Africa or from Asia, or the United States), critically evaluate the fit of MNCB’s ER framework to its subsidiary, with recommendations for strategy and practice moving forward. Your answer  should include:

• A critical investigation into each country’s general approaches to industrial or employment relations/employee voice frameworks, with critical analyses of the cultural and environmental factors that might impact these, leading to a critical identification and assessment of the key and most relevant challenges the  Headquarter faces when managing the Subsidiary. 
• Critical discussion of key theory and debates in relation to International HRM  approaches to strategy and potential outcomes (e.g. convergence/divergence and ethnocentrism/polycentrism), incorporating application to industrial or employment relations/employee voice. 
• Critical engagement with theoretical perspectives on stakeholder relationships and ethical dilemmas within an IHRM context, incorporating application to industrial or employment relations/employee voice.
• Recommendations for the appropriate course of action, critically evaluated in light of the above discussions.

Case Study Choice 2: Gender Equlilty at MNCC

MNCC is an IT firm based in the United Kingdom, specializing in the development of artificial intelligence and related software. In the early 2020s, MNCC decided to expand its business to Africa and Asia in order to tap into their growing and skilled labor markets. The company established subsidiaries in the capitals of major countries throughout Africa and Asia. To assist in the expansion, parent country nationals (PCNs) were sent from the Headquarters in  Birmingham to manage each of the subsidiaries’ main offices abroad.  

While the Equality Act (2010) in the U.K. protects people of different sex and gender identity from discrimination, gender equality at MNCC is a complex and evolving issue. MNCC has made significant progress in promoting gender equality in what has been historically a predominantly male employment sector (Science, Technology, Engineering, and Mathematics or STEM), but challenges and disparities still exist. Despite the Equal Pay Act 1 of 970, the gender pay gap persists in part due to women being underrepresented in promoted posts,  senior leadership roles, and corporate boards. The U.K. also offers both statutory maternity and paternity leave, while shared parental leave allows parents to share their leave and pay to provide more flexibility, however, cultural and workplace norms can sometimes discourage fathers from taking such leave. Instances of discrimination and harassment on the basis of gender also remain of concern in the workplace. Like many other businesses, MNCC has implemented gender equality initiatives, such as mentoring programs, unconscious bias training, diversity and inclusion policies, and increased transparency and fairness in recruitment policies at all levels and roles of the company. 

Unfortunately, MNCC has faced various challenges in trying to implement its gender-inclusive policies and practices in some of its subsidiaries where some Host Country Nationals  (HCNs) can find them challenging. There has sometimes been a lack of full acceptance or implementation by some of its subsidiaries, while some women PCNs sent from the U.K. have found their international assignments difficult. MNCC is unsure why there appear to be differences between its own gender-inclusive policies/practices and the expectations of some subsidiaries, whether or not it can or should continue to impose the MNCC gender-inclusive approach on the subsidiaries, whether it should adjust its gender-inclusive approach in its subsidiaries and to what extent, and what international employment rights and/or standards require to be considered. 

Focusing on the subsidiary in one country only (please choose one country from Africa or from Asia), critically evaluate the fit of MNCC’s gender-inclusive approach to its subsidiary,  with recommendations for strategy and practice moving forward. Your answer should include: 

• A critical investigation into each country’s general approaches to gender inclusiveness, with critical analyses of the cultural and environmental factors that might impact these, leads to a critical identification and assessment of the key and most relevant challenges the headquarters faces when managing the Subsidiary. 
• Critical discussion of key theory and debates in relation to International HRM  approaches to strategy and potential outcomes (e.g. convergence/divergence and ethnocentrism/polycentrism), incorporating application to gender-inclusiveness. 
• Critical engagement with theoretical perspectives on stakeholder relationships and ethical dilemmas within an IHRM context, incorporating application to gender inclusiveness. 
• Recommendations for the appropriate course of action, critically evaluated in light of the above discussions.

Case Study Choice 3: Global Talent Management at MNCD 

MNCD is a hotel business based in Nigeria that has suffered from a drop in local tourism since the COVID-19 crisis. In response, MNCD decided to develop itself as an international hotel chain in the hope of increasing profits. In 2022, MNCD decided to expand its business to the U.K., U.S., and Asia to tap into the growing tourism market, establishing hotels in the major cities there. To assist in the expansion, third-country nationals (TCNs) were employed by the Headquarters in Lagos and sent out to manage each of the subsidiary hotels abroad.  

MNCD, like other SMEs within the hotel sector, takes an ad-hoc approach to talent management and relies on a paternalistic and hierarchical approach. Family members and  TCNs run its Nigerian hotels, with some other key personnel recruited from personal networks rather than merit. There are limited skills available in the local population due to an inadequate education system in some areas. For example, chefs, business managers, and human resource professionals are in reduced supply. MNCD absolves itself from responsibility for employee development and does not offer training due to the high investment required and the risks involved should employees leave the hotel once trained. There are strict performance appraisal processes that are non-developmental and employees can be fired very easily. MNCD also faces financial constraints and seeks to reduce operational costs,  staffing numbers, and wages. Overall, MNCD’s talent management strategy involves creating a majority of unskilled job roles using cheap local labor, while hiring a minority of TCNs with expert qualifications gained in other countries for the highly skilled roles. These issues combine to increase MNCD’s turnover rates which, like much of the Nigerian hospitality sector in general, are high. Many Nigerian employees leave due to poor working environments, a lack of management support, inadequate rewards, and lack of career development.  

MNCD has faced various challenges in trying to implement the same talent management approach described above directly to their hotels abroad where some Host Country Nationals  (HCNs) have voiced unhappiness. Retention of key talent has been negatively impacted and the business is struggling. MNCD is unsure why its approach to talent management does not work effectively in the host country hotels, whether or not it should continue to impose the  MNCD talent management approach on its hotels abroad, whether it should adjust its talent management approach in its hotels abroad and to what extent, and what global talent management standards require to be considered. 

Focusing on the subsidiary in one country only (please choose one country from Asia, or the U.K. or the U.S.), critically evaluate the fit of one or more of the elements of MNCD’s talent management approach to its hotels abroad (you can choose which elements to focus on),  with recommendations for strategy and practice moving forward. Your answer should include: 

•  A critical investigation into each country’s general approaches to talent management, with critical analyses of the cultural and environmental factors that might impact these, leads to a critical identification and assessment of the key and most relevant challenges the headquarters faces when managing the Subsidiary. 
• Critical discussion of key theory and debates about International HRM  approaches to strategy and potential outcomes (e.g. convergence/divergence and ethnocentrism/polycentrism), incorporating application to talent management. 
• Critical engagement with theoretical perspectives on stakeholder relationships and ethical dilemmas within an IHRM context, incorporating application to talent management. 
•  Recommendations for the appropriate course of action, critically evaluated in light of the above discussions.