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HR06

International Human Resource Management

(For CNM Cases)

Assignment – II

Assignment Code: 2016HR06A2                                                  Last Date of Submission: 30^th April 2016

                                                                                                                  Maximum Marks: 100

Attempt all the questions.  All the questions are compulsory and carry equal marks.

Section-A       

1.                  You are the human resource manager of a multinational enterprise that is about to send its first executives overseas to staff a new subsidiary. What special training would you undertake for these employees?

2.                  Suggests measures for managing and improving the performance of expatriates.

3.                  Critically examine the approaches that may be employed in formulating compensation of expatriates.

4.                  Write short notes on any two of the following:                                                        

a.      Hofstede’s Cultural Dimensions

b.      Approaches to International Staffing

c.       Re-entry & career issues

Section-B

Case Study

JAPAN-BASED NIDEK RESPONDS TO THE CHALLENGES OF GLOBALIZATION

Surrounded by scenic Mikawa Bay, Gamagori, Japan is the home of Nidek, the world’s leading supplier of surgical and diagnostic products for vision care. In 1971, Hideo Ozawa founded Nidek to help doctors protect against vision loss and improve quality of life for their patients. Today Nidek is developing a vision prosthesis to restore vision to the blind. This “artificial eye” could be ready for use within the next 10 years. A leader in innovation, Nidek is firmly established in over 90 countries worldwide, with branch offices in the United States, France, Italy, Germany, Australia, and China.

On the company’s 25^th Anniversary, Nidek announced its entrance into the new business domain of eye and health care. Hiroshi Okada, Executive Vice President and General Manager of Nidek, U.S.A. is excited about the new product line geared to baby boomers like himself. “They are able to spend more money to look better or younger,” he says. Laser type dermatological equipment is used for skin rejuvenation or hair removal. Hideo Ozawa’s move to diversify his product offerings, underscores his keen understanding of the need for corporate agility in today’s rapidly changing marketplace.

Nidek has long been a respected presence in the global business community, gaining international recognition in 2001 for its company-wide quality control system. “Nidek is truly a quality driven company.  ...It has been Mr. Ozawa’s wish from the very beginning. Quality products are the bedrock of Nidek,” says Kuntal Joshi, Director of Marketing and Business Development, Nidek U.S.A.

Despite its considerable business acumen, management at Nidek, U.S.A. was recently faced with unprecedented high turnover rates in its sales force. “Our competitors were stealing our sales people...They were offering more money than I could offer,” David Yeh, Director of Sales explains. 

At Nidek Co., Ltd. in Japan, sales people are paid the same amount biweekly regardless of performance. This system works well in Japan; a traditional country, where one’s work is an extension of one’s identity. Lifelong loyalty to the company is expected. According to Joshi Kuntal, “Japanese employees are very hard working; they have a sense of pride, a sense of belonging to the company.” By contrast, tenure in America ranges from three to five years. People are more than likely to leave a job for a salary increase or a career opportunity.   Aware of the differences between the national cultures of Japan and America, Nidek U.S.A. had already implemented a performance based pay check, but even that wasn’t enough to hold American sales people.

Ultimately the crisis presented an opportunity for David Yeh and his management team to restructure the jobs of the entire sales force, as well as their bonus plans. After careful analysis, David Yeh utilized Nidek’s vast line of product offerings to resolve the situation. He realized that the competition allowed sales people to sell only one product, basing their earnings on sales of that item alone. By training sales people at Nidek to sell a vast array of products, they could make substantially more money. For now, the sales effort at Nidek U.S.A. is back in gear and the discrepancies between Japanese style management practices and American culture have been resolved.

5.         Case Questions:     

a.                  Could the above problem have been tackled differently? If so, how? If not, Why?

b.                  Taking an International HRM perspective, could Nidek have evolved a different strategy to deal with the challenge of globalization?