Managing across Cultures MGMT 544: Managing across Cultures Professor Xiao-Ping Chen University of Washington Spring, 2005

International Human Resource Management Discussion of Pfeffer & Veiga’s article A brief review of HRM issues Case debate: Black and Decker

Seven practices of successful organizations: Employment Security e.g., GM Saturn plant; Southwest Airlines   Selective Hiring e.g., Southwest Airlines; Lincoln Electronics; Enterprise Rent-A-Car Self-Managed Teams and Decentralization as Basic Elements of Organizational Design e.g., Whole Foods Markets

Seven practices of successful organizations: Comparatively High Compensation Contingent on OP e.g., Home Depot   Extensive Training e.g., Men's Wearhouse; Motorola; Disney Reduction of Status Differences e.g., Wal-Mart; Southwest Airlines Sharing Information e.g., Whole Foods Markets; Springfield ReManufacturing Corporation (SRC's "open-book management")

HRM Issues (A brief review) Recruiting and selection Job analysis Psychological tests (ability, personality, EQ…) Training and development Training content and method Career development Performance appraisal Performance appraisal methods Rewards Compensation Labor relations

Question Will the same HR practice achieve the same effects in different cultures? e.g. Participative decision making Employee empowerment

Eastern Hemisphere and the ADP Initiative Black & Decker Eastern Hemisphere and the ADP Initiative

Problem Definition Bill Lancaster must determine what type of performance appraisal and management development system should be adopted in the Eastern Hemisphere.

Background Information In 1993, Black & Decker’s International Group was split into Latin America and the Eastern Hemisphere Bill Lancaster was appointed President of Black & Decker Eastern Hemisphere in 1995

Reporting Relationships

Eastern Hemisphere Headquarters in Singapore New factories in Singapore, India, and China 1000 employees in early 1996 Growth plans call for significant increase in employment by 2001 Pressure to improve results

Current Management Situation Bad managers/disparity in management styles (empowerment vs. authoritarian) “MBO” rating scale method being used only for performance evaluation, not joint goal setting Lack of growth and development

MBO-Management By Objective 1. Employee performance discussed by manager and employee 2. Clear, comprehensive objectives established 3. Criteria set for assessing progress 4. Follow-up meetings scheduled

ADP-Appraisal Development Plan 1. Input from peers 2. Input from subordinates 3. Self-review from employee 4. Formal assessment prepared by manager 5. Performance objectives and career development plans developed by employee and manager 6. Objectives and plans summarized and submitted to human resource manager.

What to do? Implement ADP immediately? Implement the Hybrid plan by Anita Lim? Debate