SF State IBUS 618 - IBUS 618 Chapter 2: The Organizational Context (34 pages)

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IBUS 618 Chapter 2: The Organizational Context



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IBUS 618 Chapter 2: The Organizational Context

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Lecture Notes


Pages:
34
School:
San Francisco State University
Course:
Ibus 618 - International Human Resource Management

Unformatted text preview:

Chapter 2 The Organizational Context IBUS 618 Dr Yang 1 Chapter Objectives Examine how international growth places demands on management and HRM We will cover the following areas Structural responses to international growth Control and coordination mechanisms including culture Mode of operation used in various international markets Effect of responses on HRM approaches and activities We Westart startwith withthe thepremise premisethat thatthe theHR HRfunctions functionsdo donot notoperate operateinin aavacuum vacuum and andthat thatHR HRactivities activitiesare aredetermined determinedby by as aswell wellas as influence influenceorganisational organisationalfactors factors IBUS 618 Dr Yang 2 Figure 2 1 Demands on Management by International Growth IBUS 618 Dr Yang 3 Wal Mart German Retreat Wal Mart International Entered Germany in 1997 Global sales 312 billion Taking over 95 stores in 2005 Number dropped to 85 Net profit 11 3 billion stores in 2007 Announced to sell them 2 700 stores in 14 all to a German rival countries outside the Metro at a discount price U S 100 million less in 2006 Employees 1 9 million IBUS 618 Dr Yang 4 Did Wal Mart smile too much in Germany American model Service with a Smile Employee chanting Wal Mart s blames W A L M A R T to raise workplace morale You have unions and higher wages German government regulations An ethical code Banning office romance IBUS 618 Dr Yang 5 Is it culture or business competition What did the Germans say You really think that average I don t think it is a cultural underpaid clerk at the Wal Mart store in the U S cares about how you are doing To the Germans this is more or less upsetting I was too lazy to take the car if I could do all my shopping by foot in an Aldi I never had somebody trying to bag my groceries Germans prefer resusable carriers at least to pay a small fee for the avoidable sin of needing a plastic bag problem it is a problem of competition Aldi and Lidl have over 6 500 stores while Wal Mart has 85



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