The essay takes an ‘applied’ approach. This means you are expected to engage with theoretical concepts and academic studies for the purpose of informing International Human Resource Management strategy and practice. In this way, you should be able to develop your consultancy skills, adding value to the organisations you (will) work for. You should imagine that you are acting as a HR Consultant for a global organisation which wants to implement a its own specific HR practice in a foreign subsidiary. Your task is to critically discuss, analyse and evaluate strategic options and come up with recommendations. There are three different global organisations to choose from, each with their 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.
CASE STUDY CHOICE 1: EMPLOYEE VOICE AT MNCB
MNCB is a manufacturing business based in Germany, specialising 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 labour 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 which 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 area of hiring, positioning and dismissals, the internal organisation of the business, restructuring and workforce planning (amongst other things). MNCB, as the employer, comes together with the works council to form work 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 union 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 their 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:
- Critical investigation into each countries’ general approaches to industrial or employment relations / employee voice frameworks, with critical analyses of the cultural and environmental factors which 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.
