Case Study - JKL International plc.
International Human Resource Management
4Case Study- JKL International plc. International Human Resource Management �
4Organisational Context (Case Study) �
5Part One: Expatriates Management and Cross culture management in Multinational Corporations �
5Expatriates and Organisation Problems and Proposals for Changes �
Part Two: 9Appraise The Decentralised Managerial Systems of JKL applied in Russian Affiliate �
9Strengths and Weakness of JKL's and Zagorski's Managerial Structure �
10National Culture Differences �
10Relevant Cases �
11Conclusion and Recommendations �
17Appendix A �
18Appendix B �
19Appendix C �
20Appendix D �
21Appendix E �
22Appendix F �
CASE STUDY- JKL INTERNATIONAL PLC.
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
With the trend of globalisation, the number of multinational companies is constantly increasing as well as expatriates (Business Recorder, 2011). Expatriate management now is an essential issue of human resource department because it takes a large amount of budget from the corporation. It is inevitable for expatriates to face culture barriers in subsidiaries because of unique national cultures in all countries over the world.
National culture is ''cultural experiences, beliefs, learned behaviour patterns, and values shared by citizens of the same nation'' (Neale _et al_, 2006, p.26). A national culture will significantly affect any employee working in firms and furthermore, national culture will influence the management framework in a company as well accompanied with organisational culture so that cross culture management is helpful not only for the supervisors' decisions but also for employees especially for expatriates (Chen, 2006, p. 2). In the case study of JKL, it showed a range of problems in their expatriates which related national cultures and JKL will implement a British managerial system into its Russian subsidiary.
This essay will first examine the problems and issues in managing expatriates in JKL and then evaluate the proposal from Jim Flinn, the CEO of Zagorski who will apply an entire British managerial system into a Russian subsidiary.
ORGANISATIONAL CONTEXT (CASE STUDY)
JKL is a British pharmaceutical company which was founded in 1925 and it has expanded its business by acquiring other pharmaceutical companies in Malaysia, India, Greece and USA. Recently, JKL has made the largest acquisition of Zagorski, a pharmaceutical company in Russia.
At the headquarter of UK, JKL applies a decentralised organisational structure. All managers are required to give their own opinions to avoid some drawbacks of group decision making which is conformity pressure in groups (Robbins and Judge, 2009, p.336). Employees are allowed to propose valuable ideas to manufacture and administrative systems as well. Supervisors will award monetary incentives (one of the physical needs) as motivation to employees and managers (Carrell, Elbert and Hatfield, 2000, p.129) if their initiatives are judged as potential innovations.
On the other hand, in subsidiaries, JKL applied localised human resource practices in order to fit local cultural values and legal systems (Dowling, Festing and Engle, 2008, p.217) by keeping local managers with existing organisational and managerial systems. In past years, those subsidiaries in Malaysia, India and Greece were continually making profits to JKL and JKL also regularly sent managers and specialists to those subsidiaries for expatriation in a period of time.
After the acquisition of Zagorski, Dr. Jim Flinn will be the CEO who had spent last three years in the subsidiary of USA.
EXPATRIATES MANAGEMENT AND CROSS CULTURE MANAGEMENT IN MULTINATIONAL CORPORATIONS...
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