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International Human Resource Management

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on 16 August 2015

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Transcript of International Human Resource Management

International Human Resource Management
Amelia Tan Wei Lin (S3449985)

Chen Jin Feng (S3531340)

Chua Wen Qi Jasmine (S3446396)

Ng Chia Ley (S3450321)

Nur Hazimah Bte Mokzi (S3532137)

Siti Nasuha Bte Mohd Nasir (S3532289)

Tan Pei Shi Rebecca (S3532369)

Tan Shi Ting Evon (S3505986)
Bosch - kazakhstan
the demand for executive staffing at all levels & for all divisions
how demands will be met
situation analysis

Ethnocentric ?
Polycentric ?
Geocetric ?
Regiocentric ?
Business sectors & divisions
like comment share

Majority to share technical and process expertise
Some for career development and training

Corporate Culture
like comment share
Human Resource
Total number of employees (Yr 2010) = 283 507
Stuttgart, Germany

subsidiaries and regional companies
15 000
service centers in
150 countries
bosch company Profile
Culture (based on GLOBE study)
Power Distance
Control is accepted

leadership is based on expertise
Direct and participative communication and meeting style is preferred.
Rules & details are important to create certainty.
Prefer to compensate higher uncertainty with more reliance on expertise
Driven by competition, achievement and success
Direct communication (honest even if it hurts)
performance oriented
Future Oriented

Pragmatic society (people believe that truth depends very much on situation, context and time = will adapt traditions to changed conditions.)
Strong propensity to save and invest
Perseverance in achieving results

strong belief in the ideal of self-actualization
Global leading manufacturer :
Consolidated Market
Growth Market
Production sites in Kazakhstan
Consolidated Market
Large market share with low amount of company control
Usually differentiated products from well established brands

Growth Market
Experience a higher than average growth rate.
Often associated with new or pioneer industries that did not exist in the past
Growth -> consumer demand for the new products or services offered by the firms within the industry.
BOSCH products

Low cost pressure
Low pressure for local responsiveness
Meaning = an employee working > 1 year outside his/her home country
Total Number of expatriates : >2200
Creating values - sharing values
Future and result focus
Initiative and determination
Openness and trust
Reliability, credibility, and legality
Cultural diversity
Customer Orientation
Continuous improvement
Better than our competitors
Offer outstanding products and services worldwide
Keep our promises
Gain profit to secures growth
HR Philosophy
Alleviation of all kinds of suffering
Promote the moral, physical and intellectual development of the people
Business Language
Official Language : Germans
Minority Language : Sorbian, Danish, Turkish, Kurdish
Ethnic Proportion
Foreign Trade
Environmental conditions

Central Asia
Neighbors - China, Russia, Kyrgystan, Turkeminstan, Uzbekistan
Ethnic Diversity

Economic Situation
Economically active population
Unemployment rate - 5.8% (Yr 2010)
Low labor cost
Average monthly salary - USD 527 (Yr 2010)
High degree of private education
Low funding of research -> dependent on foreign investments
Shortage of relevant skills which correspond to company's needs for skilled personnel

Ferrous & non-ferrous metals

Main exports:
Kazakh (State)
Russian (Business)
Culture (based on GLOBE study)
Indirect communication
Uncertainty Avoidance
* Germany
Easy acceptance of new ideas, innovative products & willingness to try something new/different
Tolerant of ideas or opinions from anyone
Allow the freedom of expression.
Future Orientation
* Germany
Prefer to maintain time-honored traditions & norms -->(focus on values related to the past and present eg. national pride or fulfillment of current obligations)
Small propensity to save for the future
Focus on achieving quick results
Accept a hierarchical order -> everybody has a place and which needs no further justification
Subordinates expect to be told what to do
Close, long-term commitment to the member 's group
Employer/employee relationships are perceived in moral terms (like a family link)
Hiring and promotion decisions take account of the employee’s in-group

Dominant values in society are caring for others and quality of life.
(Rural area)
BOSCH in Kazakhstan
Product :
Low cost pressure
Low pressure for local responsiveness
(use existing production to sell products overseas)
Centrally Controlled
in Kazakhstan
Germany's Culture:
High uncertainty avoidance (high risk involved in foreign activities)
Total number = 16.4 million (Yr 2011)

International company
Skills :
Locals do not have relevant skills needed
BOSCH's HR philosophy :
Promotion of employees from within

(home office makes all decisions)
staffing STRATEGY
Home country oriented -> Strategic decisions are made at HQ
Few foreign subsidiaries have autonomy
Expatriates from HQ (PNCs) hold key positions & manage subsidiaries

What is it?

Time (expatriates take time to adapt)

Helps to transfer core competencies & skills
Overcome lack of locals with required skills (technical / managerial / international experience)
Effective communication between HQ & subsidiary
More development & promotion opportunities for PCNs
Transfer & maintain corporate culture
Allow HQ to have more control
(PCNs more loyal to parent organization than HCNs)
Not much promotion opportunities for HCNs
Compensation disparities between HCNs and PCNs
Inability to adapt well may results in poor decisions made
(eg. making decisions that fit the HQ that is not suitable for the subsidiary)
Action Plan
EMP for BOSCH - Kazakhstan
Corporate Strength & Constraints
Objectives & Goals
Geographical Diversification
Operates on a global scale
Helps to minimize business risks
Enable BOSCH to extend their reach to emerging markets.
Sufficient Capital & Resources
Experienced staff with required skills and expertise

Well-established & extensive range of policies and employee development programs

Strong R&D capabilities
(Able to develop innovation solutions)
Eg. Management Potential Review (MED), Manager Development Plan (MDP), Juniors Managers Programs (JUMP)

Abundant natural resources in Kazakhstan

Low labor cost in Kazakhstan

Production resources
Lack of cultural readiness of expatriates
Need time to adapt
Production sites located in rural area
Costly to transfer expatriates

Insufficient skills and international experiences
More time needed to train external hires
Eg. Allowance, Training, Housing,
Lack of mobility of local hires
Short Term
Long Term

facilities & provide training courses for local hires
Expose local managers to international assignment -> replace expatriates after return
Hire locals with
lower entrance level
(diploma) for technical & commercial positions

Sent technical experts & managerial personnel
from HQ
to Kazakhstan
experts/specialists professionals from labor market
international programs
to attract talents in Kazakhstan (eg JUMP)
Introduce BOSCH's
standard employee developments programs
Strengthen employee retention strategies - relationships, support, growth, compensation

Improve how you treat your people and how they treat each other
Involve giving people the tools and equipment to get the job done
Deal with personal and professional growth.
Develop new knowledge and skills in order to improve people's value in the marketplace and enhance their own self-esteem
Hard (monetary) and soft (non-monetary) employee compensation strategies
Pay-for-performance plans
due to pessimism
Planning Chart
(More staffs will be located to Diesel)
Expatriates (Increase)
Uncertain environment
lack of skilled locals
Need more to act as agent of socializing
(eg. encourage the adoption of common work practices to strengthen the corporate culture)
Local MDP (Decrease)
Need them as assignment will build their managerial expertise
Uncertain environment
-> may
lack knowledge & experience
in tackling unknown situation as compared to expatriates

External Hires (Remain)

new ideas and perspectives to
minimize ‘group think’
attain skills
that are
in current employees
-> balanced workplace
Unattractive location
hard to attract
experienced professional in
short period
of time &
for company in term of monetary and time -> need to adapt to corporate culture & local culture. Although future oriented, based on HR philosophy, will rather invest from within company.
Expatriates (Remain)

Diesel in growth state -> high uncertainty
Need PNC to act as agent of direct control
(eg. establish corporate culture at Kazakhstan & ensure compliance of corporate strategies at Kazakhstan)

Expatriates (Increase):
Lack of skilled locals -> need more to transfer technical skills
Bottom-up supervision of the implementation of corporate value
(Costly -> future oriented culture -> willing to invest more to stabilise uncertainty)
Local MDP (Lower):
Need them as assignment will serve as a 'in the job' training
Uncertain environment -> may not be sufficiently prepared in tackling unknown situation as compared to expatriates
JUMP (Remain):
Need to hire talents -> create candidates pool for future managerial position
Low value -> Small pool of locals with masters’ qualification & 3 yrs experience
External Hires (Remain):
Cheap labor
Easier to hire with lower skills set needed
Need to fill technical job vacancies
Short Term
Long Term
Expatriates (Remain):
Position has a direct strategic impact -> high uncertainty avoidance culture -> continue to act as agent of direct control

Act as network builder -> influence government planning on education reform towards skills required by company
Expatriates (Increase):
Standardize corporate language
Guide local MDP
Value lower than short term -> trained locals starts to take over

Expatriates (Increase):
Continue to transfer knowledge
Ensure implementation of suitable work practices
Lower value than short term -> trained locals starts to take over

Local MDP (Increase):
Create more opportunities for managerial development when conditions in Kazakhstan have stabilized -> in line with HR philosophy

External Hires (Remain):
Acquire skills sets lacked quickly
Reduce ‘group think’
Lower value than short term -> HR philosophy
JUMP (Remain):
Reform of education system -> create more suitable skilled locals
Small increase margin -> may still be hard to acquire as effects of reform takes time to surface

External Hires (Decrease):
Need to fill technical job vacancies & build candidates pool to be selected for future training
Lesser value from short term & original value -> HR philosophy
Local MDP (Lower):
Create opportunities for managerial development
May not be sufficiently prepared
Acquire talents
Long term
Acquisition of Talent
Talent Relationship Management (TRM System)
Stay in contact with candidates
Send personalized messages to different talent groups
Pipeline in the system to provide job offers
Invitations to Internship programs (universities) and events organized by Bosch

Aims of TRM system:
Contribution to hiring numbers
Reduce staff turnovers
Increase successful interviews
Professional Development Training (PDT) Program
24 months rotational program for bachelor’s-level candidates
An executive mentor will be assigned to provide professional coaching and career guidance
Peer mentor for other areas of guidance throughout the program
4 rotations in preparations for cross-functional and cross-divisional opportunities internationally
Take on low management positions
Enables qualified pool of candidates to gain more international exposure and be ready to take on international assignments
Feedback & Reviews
Held every quarter of the year
UM will conduct feedback session with nominated employees representing LM & MM
Assessed twice annually
- Actual performance vs Expectations
- Employee fits in the workplace (relationships with other co- workers), culture & industry
Continuous comparisons (at least semi-annually) of the planned versus actual labor staffing situations

Training for External Hires
Talent Retention
Discuss & audits existing retention packages for individual to ensure packages remain attractive
Sponsorship for Studies
Awarded to individuals going for higher studies in recognition of excellent academic result, leadership quality or other talents which will result in a 5 years bond with the organization
Short Term
Expatriates Transfer
Selected internally
Persuasion of managers to release their best employees
Selection based on appraisals & interview
Compensation Package
Negotiate & develop customize compensation package to attract expatriates
Financial - salary, bonus, stock options
Non financial - training, club membership, working hours
Pre-departure Training
Cultural & language training to assist adjustment in foreign location
On-going communication
Provides support for expatriates and families during assignment
End of assignment
Provides pre-return orientation to cope with re-entry shock when returning to home country or be given new assignment
External Hiring
Enables employees to voice opinions about working conditions, salaries, benefits, work-life balance issues, occupational health and safety issues
Regular Feedback
Performance Review
For internal promotions
(especially in Diesel Systems)
Upgrading courses:
Well-equipped with relevant updated technical skills & knowledge
Labor Staffing Review
Provides feedback on those assignments which have to be initiated or redefined.
LM vacancies:
Lower the entry level (Diploma)
Recruit candidates with task relevant personality profile, readiness to take on challenges & willingness to travel
MM vacancies:
Advertise vacancies on media platform frequent by relevant specialists

Language programs:
Basic german for communication with expatriates
Corporate culture training:
Orientation on the values & the behavior expected
Skills training and development:
In-house curriculum/workshop
Mentor System
Language lessons:
Additional 3rd language to be taken to ease international communication
International assignment
Widen the international perspective
Relationship strategies
Mentoring systems, public celebration for company's achievement, corporate open house for family's visit, social activities

Support strategies
Job flexibility, effective communication, provide challenging jobs

Growth strategies
Cross training, incentive for learning, online learning, different career development opportunities

Compensation strategies
Financial: Pay for performance
Non-financial: Memberships, discounts, childcare for family
Creates resentment
May hurt morale causing decrease in productivity

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