304 LON International HRM

304 LON International HRM
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304 LON _ INTERNATIONAL HRM
REGULAR ASSIGNMENT ONE
COVENTRY UNIVERSITY LONDON CAMPUS
17AUGUST 2012

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STUDENT NAME STUDENT ID ATTEMPTED PARTS
Esha Chopra 4095053 Recruitment and selection
Priscilla W Muchiri 3912300 Training and development
Gabriela Martins Madureira 4049702 Reward and performance
management
Muhammad Tanvir Hossain 4325352 Employee participation and
trade union
Group Introduction,
Recommendation and
Conclusion
TUTOR NAME: MISS YVONNE BROWNE

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Table of Contents
Introduction...........................................................................................................4
Recruitment and Selection .................................................................................4-5
Training and development .................................................................................5-6
Reward and performance management..............................................................7-8
Employee participation and trade union ..........................................................9-11
Conclusion ..........................................................................................................11
References………………………………………………………………… 12-14
Appendices……………………………………………………………………..15
1. Total Reward Model ………………………………………………………..16
2. Schuler and Rogovsky (1998) different types of reward systems………..…17
3. Marchington's (1992) four categories of EPI:.............………………………18
Reader’s Guide: Recommendation mentioned after each topic.

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Introduction
In this report we will look at the key HRM issues at Medical Precision System (“MPS”) -a
respected US company which has been producing medical precision tools used in surgery
since 1972-discussed in the case study and point out the number of reasons that may have
caused the company to face some difficulties in both their home country and in the United
kingdom, France and Sweden. Despite the company’s success in America, employees in
Europe did not respond well to the current management. Consequently, after understanding
the company’s international and local activities make recommendations to help in minimising
the problems, increasing performance level and employee job satisfaction matching their
perception of value.
Recruitment & Selection
“Recruitment is defined as searching for and obtaining potential job candidates in sufficient
numbers and quality so that organization can select most appropriate people to fill its job
needs” (Dowling et. al. 2008). The main role of the Human Resource manager is to recruit
and select the best suitable person for the organization. It is quite vital to note that based on
the industry and sector the Human Resource manager uses different models for recruitment
and selection.
The most appropriate in this instance would be the “attrition -attraction-selection” model
developed by Schneider (Bratton and Gold 2007).
“Attraction” is when the employees apply
for job as they are passionate about the job
role. “Attrition” is the opposite of
attraction, when the employees leave the
organization when the employees are no
longer interested in the company. Whereas,
in “Selection” the organization selects a
candidate when they feel that the candidate
is suitable to hold the position in the
organization.
In the case of Medical Precision Systems, the main contrasting decision at the human
resource management level was that they kept on recruiting employees that at the end of
every international expansion strategy they had an enormous number of work force. It should
be noted that even though having more employees is good for the company as it will help in
catering the difficult tasks at the technical as well as administrative level especially in a new
geographic region but the cost involved in training the staff will cause them a lot of financial
burden and minimizing it will in fact help the company to invest in other spheres of business.
The use of expatriates is one of the measures that the company could have used, as most of
the MNC’s have been successful as this helps in successful transmission of the Human

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Resource Strategies (Nohria and Ghoshal, 1997). In this case the amount spent on training the
staff is not very high as the expertise remains with them but cultural training has to be
provided to those employees. Expatriates also help in bringing forth the know-how and
organizational culture of the company (Dowling et. al. 2008), which will help in ease of two
way communication between both these countries as well.
Similarly, another Human Resource Management strategy that Medical Precision Systems
can use is the more effective utilization of the Information Technology. For instance,
facilities such as online applications, Curriculum Vitae uploading, job roles and career
prospects etc. being available online would have helped in making the recruitment procedures
much easier, reduce cost as well as more applicants for the company while its international
expansions (Beardwell, J. and Claydon, T. 2010).
Training and Development
Training aims to improve employees current work skills and behavior, whereas development
aims to increase abilities in relation to some future job position. (Dowling 2008:137) and at
MPS training is taken seriously and all employees attend sessions to train in team working
and people skills as well as courses of a more technical nature. This is very essential to the
company as it employees so many employees both skilled and semi skilled per year and
because the company ensures that laying them off is avoided as much as possible hence
greatly building its stock of human resources-its human capital.
In the struggle to ‘think global and act local’ organizations need people who have ‘a “matrix
of the mind “, sharing learning and creating new knowledge are among the key capabilities
that organizations must have( Ulrich and Stewart Black, 1999) hence by MPS expanding
overseas and hiring a rather educated workforce no much training is required initially but the
continuous learning and development of individuals are therefore of crucial and strategic
importance to the company (Beardwell and claydon 2010), Such as cross cultural awareness
and language training programs to help the expatriate employee adapt and not feel isolated
and to assist in managing diversity, employee training and Consequently by planning and
implementing are able to fill in the gap and evaluate the intervention. (See diagram below)

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Appropriate training for international subsidiaries is crucial in order to minimise problems
such as lack of understanding of the British mentality, France major problem in the
management style and the diversity of conditions in the subsidiaries’ and practices followed
in the USA.MPS has an existing HRM strategy which ensures that feedback mechanism is
implemented and backed up with training programmes for all employees, additionally it
should adapt the Mendenhall, Dunbar and Oddou cross-cultural training model for its
managers(expatriates) as leadership is a key factor in influencing the development of learning
organization. (Senge, 1990; Johnson, 1998; Prewitt, 2003; Sadler, 2003) which has three
dimensions of training and establishes a suitable program depending on the employees level
of interaction and the degree of similarity between the employees home culture and the host
culture, thus able to understand the situation, the people, minimize the problems and attain
effective performance to achieve the transition.
(see diagram below)

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Finally, by encouraging its employees to think out of the box in order to bring out the best in
them and having a leader who can help cope with the changes this in effective will help the
company to breathe and grow.
Performance and Rewards
Reward is an essential factor that motivates employees and influences their level of
performance. The Expectancy Theory of Motivation (Vroom, 1982)
Vroom’s Expectancy Theory

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proposes that employee motivation results from employees’ valuation of rewards and that
rewards must also support their culture and goals. MPS focuses on performance
management, setting targets for groups and individuals that determine remuneration and
promotion. Profit sharing has been introduced and a share scheme will be introduced in the
near future.
However, the Model of Total Rewards (See appendix1) (Armstrong and Murlis, 1998)
recommends combining rewards to maximise employee’s satisfaction; the ‘reward mix’ is
important, balancing ‘pay’, ‘benefits’, ‘learning and development’ and ‘work environment’.
In a cross-cultural organisation, employees must have a clear view of what is needed to
achieve rewards available.
Greene (1995) also stated that reward systems should be sensitive to cross-cultural
differences and performance-dependent rewards may not be attractive to employees who
value income continuity. Schuler and Rogovsky (1998) suggested that workers’ differing
values across countries of status, individual performance and risk avoidance should determine
the types of rewards offered (See Appendix 2).
Whilst MPS’s US workers responded well to target-setting, (suggesting they are individual
and not concerned about job security), unions and employees in the UK felt the targets were
too hard and divided employees (suggesting they are less individual and more focussed on
maintaining job security); rewards to increase status/seniority may motivate UK workers
more than pay/bonuses.
In France, employees also did not react well to hard performance targets or group feedback
on the performance management system but wanted a strong line manager with authority to
direct them (suggesting that the French workers were motivated by status); the reward mix
may need to focus on benefits and work environment (e.g. additional holiday allowance not
pay/bonuses). French workers would respond better to a strong French management team
rather than a US manager.
In Sweden, employees disliked performance targets but liked group feedback (suggesting
preference for employee ownership rewards based on group efforts); MPS should focus on
the work environment to encourage employees’ enjoyment of group innovation and
encourage innovation in teams. Rewards may be in the form of pay/bonuses but be focussed
on Swedish performance and teams rather than individual performance.
MPS’s reward schemes focus on individual performance (assuming that all employees are not
worried about job security) which appeals to US employees. However, employees in the UK,
France and Sweden are not responding well to the current reward mix. MPS should develop
country-specific rewards that match those employees’ perception of value which will ensure
all employees are motivated.

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Employee Participation & Trade Unions
Employee participation:
Employee participation and involvement (EPI) is the central activity of HRM ( Beardwell &
Claydon 2010: 531) and is an extremely important component of HRM. Marchington and
Wilkinson (2005: 392) describes 'employee participation and involvement are somewhat
elastic terms and are amenable to a range of definitions'. MPS expatriate managerial motive
was to motivate employees for a positive-sum outcome and implemented direct participation
in UK, France and Sweden in a form of team working systems, work place feedback etc. The
motivation for participation differs fundamentally from employee involvement, a 'desire'
(Beardwell & Claydon 2010: 533) to increase the influence of technical issues of corporate
efficiency (see Box 1.1).
Table 1.1 Employee involvement and participation compared:
Source: Beardwell and Claydon (2010)
Marchington et al. (1992) classify four categories of EPI initiatives (see appendiX 3)
Upward problem solving mechanism (see the diagram below) did not work so well in France
as workforce see very little potential of this feedback mechanism where they preferred to
have a line manager to direct them towards work tasks which is downward communication.

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Source: Upward communication, 2012
MPS failed to implementing indirect participation in European subsidiaries in the decision
making process. As a recommendation, MPS should implement employee participation in
form of following figure:
Source: Bratton, Gold (2007)
This above cycle will Help MPS to create a diverse atmosphere to lead the growth in
innovation and creative ideas within organization. The involvement schemes are: behaviour,
economic and moral.

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Trade union is the indirect participation (Representative participation) which bring the social
responsibilities within the organization (Mullins 2010).
Britain 'employee participation' (Employee Participation and Involvement, 2012) has
normally occurred within the structure of combined bargaining. For example, when MPS's
UK operation manager Joe Mendes suggested having one union for negotiation purpose there
was almost a huge walkout. MPS strategy of keeping out union did not work in Britain as the
representative participant (unions) and many employees stressed target was too high and
disruptive and they have little control over them.
MPS set up a works council for management and employees in Sweden under the Swedish
and EU law but MPS disliked these meetings and gave less importance. MPS were not quiet
co-operative in the eyes of one Swedish union.
Conclusion
It is crucial for MPS or any other organization to recognize that cross cultural training
increases the probability of success of international assignments, moreover, develop its
employees to enable them to perform their current and future roles in the organization and
also to accumulate stock of knowledge, skills, and abilities that employees possess which the
company builds over time into identifiable expertise. In doing so recognize that the
employees expect either intrinsic or extrinsic reward when they have put effort in and become
greater skilled. Furthermore, with the increasing flexibility of organizations individuals need
to engage in lifelong learning. And all these can be done through employee, staff, self-
development, management and organization development and continuing professional
development. In conclusion, however It is important to note that some employees may
become dissatisfied with their jobs or employers after training hence some employers may
become reluctant to develop their employee. Additionally, MPS should therefore develop
country-specific reward schemes that match the local employees’ perception of value.
Developing rewards to match local employee value perception will ensure that the motivation
of employees in those countries is maximised.

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References:
Beardwell, J., Claydon, T. (2010) 5th Edition Human Resource Management: A
Contemporary Approach. Harlow: Financial Times Prentice Hall
Bratton, J. and Gold, J. (2008) 4th Edition Human Resource Management: Theory and
Practice, Basingstoke: Palgrave Macmillan
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Blyton, P. and Turnbull, P. (1998) The Dynamics of Employee Relations. Macmillan
Business, Oxford, United Kingdom.
Blyton, P. and Turnbull, P. (2004) The Dymanics of Employee Relations, 3rd edn.
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Cameron, S., 2010. The Business Student’s Handbook: Skills for Study and Employment, 5th
Edition. London: Pearson Education Limited
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www.businesslink.gov.uk/bdotg/action/detail?itemId=1073791755&type=RESOURCES
(13/08/2012)
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Dowling, P., Festing, M. and Engle, A.D. (2008) 5th Edition International Human Resource
Management. Cengage: Learning EMEA
EIRR Report Number Four ( 1990 ) Employee participation in Europe, London: Eclipse.
EMPLOYEE PARTICIPATION - THE EUROPEAN EXPERIENCE,
05.08.12http://bus.lsbu.ac.uk/resources/CIBS/european-institute-papers/papers3/696.PDF
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Holden, L. (2004) 'Employee involvement and empowerment' in I. Beardwell, L. Holden and
T. Claydon (eds) Human Resource Management: a Contemporary Approach, 3rd edn.
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Jackson, T. 2009, International HRM A Cross Cultural Approach, Sage Publications Limited
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Lane, C. (1992) Management and Labour in Europe, E. Elgar: Aldershot.
Marchinton, M. and Wilkinson, A. (2005) 'Direct participation' in S. Bach (ed.) Personnel
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Marchington, M., Goodman, J., Wilkinson, A. and Ackers, P. (1992) New Developments in
Employee Involvment, Department of Employement Research Series No. 2. London: HMSO.
Mullins, L.J. (2010) Management and Organisational Behaviour, 9th Edition, Harlow:
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Mueller, F. and Proctor, S. (2000) Teamworking. Basingstoke: Macmillan.
Nohria, N. and Ghoshal, S. (1997), The Differentiated Network: Organizing Multinational
Corporations for Value Creation, San Francisco, CA: Jossey Bass
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Figure References
Bratton, J. and Gold, J. (2008) 4th Edition Human Resource Management: Theory and
Practice, Basingstoke: Palgrave Macmillan

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Appendices

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APPENDIX 1
TOTAL REWARD MODEL
Source: Beardwell and Claydon (2010)

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APPENDIX 2
Schuler and Rogovsky (1998) different types of reward systems:
Reward systems based on status (seniority and skills) are more likely in countries with higher
levels of uncertainty avoidance (where employees desire job security);
Reward systems based on individual performance (performance pay, bonuses), which are
more likely in countries where employees are individual (i.e. employees are less motivated by
team rewards) and less likely in countries with higher levels of uncertainty avoidance (i.e.
less likely where employees want job security); and
Employee ownership plans (share option plans), which are more likely in countries with (i)
low ‘power distance’ (‘power distance’ is the extent to which reward is based on status rather
than performance so ‘low power distance’ means where performance leads to rewards and
not status) and in those countries (ii) where employees are individual and (iii) those countries
with lower levels of uncertainty avoidance (where employees are not worried about job
security).

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Appendix 3
Marchington's (1992) four categories of EPI:
Downward Communication: Downward communication is top-down communication from
management to employees. It is including company's other communications, such as, team
briefings, news papers and magazine, meetings and the use of the intranet (Bearwell and
Claydon (2010 :545)).Table 1.2 shows the findings from WERS in 2004.
Table 1.2: Direct communication by sector of ownership
Source: Bearwell and Claydon (2010)
Upward problem solving forms and team working: Upward problem solving mechanism are
commonly considered for the function of collecting ideas and solving production and service
problems. It also take account task-based participation, self-management and team working.
Organizations are strongly linked team working and task-based participation as inner part of
HRM (Mueller and Proctor, 2000). WERS 1998 and 2004 gave an nearby report on what
companies are reporting of team working practices. Table 1.3 shows the summery of the
report.

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Table 1.3: Work organization by sector of ownership.
Financial participation: This refers to schemes that allow employees a financial stake in the
company. Typical mechanisms include employee share ownership schemes and profit related
pay. Holden (2004: 554) explains that 'the general aim of financial participation schemes is to
enhance employee commitment to the organisation by linking the performance of the
organisation to that of the employee' (Bearwell and Claydon (2010: 547)).
Representative participation: Representative participation is indirect participation. It includes
work council and trade union. Representative participation introduce the concepts of social
partnership and an extension of rights for individual employees. Table 1.4 below shows the
employees involvement from 1980 to 1998 in Trade union, work councils and consultation.

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