Highlights
Overview
The main objective of this assignment is to allow students to evaluate and experience both the theory and practice of international human resource management within the global context. The principal objective of using the scenario method is to acquaint the student with situations that might be encountered in a real business environment.
THE SCENARIO
This International Human Resource Management case deals with problems and issues of setting up an international subsidiary, which aligns with corporate strategy.
New Oriental Education, Inc. is a major supplier of educational materials for the United States. The company focus is on learning tools and systems for use in technology, science and business classrooms. In addition, it develops and provides books, manuals, videos, software and hardware used in the fields of technology education, instructional development and business applications.
The three main divisions exemplify three different strategies: quality enhancement, innovation and cost-reduction:
– Manufacturing. The primary strategy of the Manufacturing Division is quality enhancement. New Oriental Education, Inc. has an enviable history of providing the highest quality products, which have been adopted by first-rate schools and corporate training programs.
– Creative Development. The primary strategy of the Creative Development Division is innovation. New Oriental Education, Inc. is widely known for providing truly cutting edge teaching materials, which always mirror the latest techniques and processes.
– Transportation, Service and Maintenance. The primary strategy of the Transportation, Service and Maintenance Division is cost-reduction. New Oriental Education, Inc. has long been known for providing service and maintenance programs, which are very reasonably priced. Within the Human Resources Department there are four sections:
1. Staffing section.
2. Compensation and benefits section.
3. Labour-management relations section.
4. Training, career development and performance appraisal section.
There are also human resource specialists in each of the three divisions around the country.
New Oriental Education, Inc. has decided to expand to Japan. Management has conducted research and discov- ered that they want to start selling in far Asia. That area is organizationally, politically, legally and culturally so different from the U.S., though market researchers have shown huge opportunity and considerable forecasted demand in that specific market and that is why the managers of New Oriental Education thought it would be best to start the internationalization with far Asia. The company bought a small, high-tech education firm in Japan. The main plant has been around for many years and has a mature workforce. The internationalization project manager, Ryan Jackson, has to decide whom to hire as a manager for the factory.
The strategy of this factory is quality enhancement. The manager should be able to continuously keep up quality and make sure that the employees understand the importance of producing quality products. Also, the manager should have a good vision about how to develop educational products for far Asian markets. That means he or she should also be innovative and know about high tech educational products. The job includes making long-term plans, deciding about new products, hiring and managing performance for current staff and making sure that the subsidiary strategies are in line with the parent company.
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