Assignment BFT507-Leadership & Strategic Human Resource

8/12/2019 Assignment BFT507-Leadership & Strategic Human Resource

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UNIVERSITY OF MALAYSIA PERLIS

- BFT507-Leadership & Srae!i" #$%a Res'$r"e(

T'i)'e Paper i The U*S*A- +ase S$d,

Prepared By:

Zakarya Ameen

Muzaphar Noman Abdulrahman

Prepared For:

Prof. Madya Dr. Salmiah Mohamed Amin

March, !"#


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Executive summary

The purpose of this case is to investigate how a non-American company Toivonen! has

a"apte" to the #$S$ environment$ %t assesses the ro&e of the parent company cu&ture in the

"ay-to-"ay operations of the American su'si"iary$ Since the "ifferent 'usiness cu&ture

create" the "ifferent 'usiness concepts( management structures an" HR po&icies an"

practices with each country$ The case pro'&em is the Toivonen form the Finnish company

operation with the American su'si"iary company in mu&ticu&tura& 'ac)groun"$ An" how

nationa& cu&ture can inf&uence corporate cu&ture an" human resource po&icies an"

practices$ %&&ustrate the "ifferences an" simi&arities 'etween American an" Finnish cu&ture

using the "imensions of power "istance( uncertainty avoi"ance( in"ivi"ua&ism an"

mascu&inity$

*


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Answers to the Case Questions:

1. A ma+or issue in the case is the possi'i&ity of Toivonen "ispersing its corporate

cu&ture to &oca& su'si"iaries in the #$S$ %f you are the ,roup Human Resource

anager from Toivonen( Fin&an"( how wou&" you "eve&op your HR action p&an.

First of a&&( 'efore starting up "eve&oping the action p&an( we shou&" ana&ysis the current

situations of HR po&icies for 'oth of Toivonen as a corporate cu&ture foreign company

an" Tree&in as a &oca& su'si"iary as shown in the ta'&e 'e&ow/

Table 1: Human Resource Policies

Toivonen Treelin Long-Term mp&oyment

re&ationships

1n&ine training programs 2

mp&oyees Assistant 3rograms$

un&imite" sic) time

wor) group hiring

mpowerment4se&f-"irecte"

ommunication too&s(

entra&i6e" compensation an" no

performance appraisa&s

3ay an" 'onuses 'ase" on

performance appraisa&s

mphasis on p&ant pro"uction

F&at organi6ation sty&e

Bottom Line/ ant %n"epen"ent

"ecision ma)ing 'ase" primari&y on'u"get$

Therefore( we can easi&y foun" that there are a potentia& pro'&ems resu&ting from "ifferent

HR po&icies as state" in the case which we can summari6e them into/

Long-Term mp&oyee Benefits vs$ Bu"get an" 3ro"uction mphasis

entra&i6e" ompensation vs$ 3erformance Appraisa& ompensation

mp&oyee areer A"vancement vs$ Stagnant mp&oyee 3ositiona& ovement

omp&e8 1rgani6ation vs$ F&at 1rgani6ation

orporate Structure vs$ 9ee" for %n"epen"ent :ecision-a)ing

;


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However( in case % wou&" 'e the ,roup Human resource manager from Toivonen(

Fin&an" % wou&" ma)e sure to carry out the fo&&owing steps an" action p&an/

Table 2: HR Action Plan

Objective Action plan

To %ntro"uce strong commitment to

maintain &ong-term emp&oyment

re&ationship$

Su'stantia& changes to HR 3o&icy$

To focus on group &eve& outcomes than

in"ivi"ua& outcomes$

Finnish cu&ture strong&y app&ie"

To ensure goo" communication on the

teams an" 'etween &eve&s in mi&&s$

or) structure change" to se&f-

"irecte" teams

To imp&ement a se&f-"irecte" wor) teams$

Therefore( most performance pro'&ems

can 'e han"&e" at the team &eve&$

&iminate" the performance

appraisa&s$

To %mp&ement training an" "eve&opment

programs that wou&" provi"e" a&& of a


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as a &oca& su'si"iary as "escri'e" in the fo&&owing ta'&e/

Table ': Comparison between inlan" an" #.$ base" on Ho%ste"e Cultural &imension

Indexes U.S. Finlan

d

Diff (U-F) Observations

Power Distance >0 ;; 7Sma&&est in"e8 "ifference!Finish firms prefer f&atter

organi6ations an" sma&&er wage

"ifferentia&s than American firms

Individualism ?@ ; *

High :ifference!

Finish firms are more &i)e&y tofocus on the co&&ective than

American firms$ Thus( wor) wi&&

ten" to 'e organi6e" 'y groups an"'onuses "e&ivere" on group

performance

Masculinity * * ;

Highest :ifference!

Finish firms an" &ea"ers! wi&&&i)e&y 'e more concerne" with

emp&oyeesC we&&'eing an" socia&

responsi'i&ity than their American

counterparts

UncertaintyAvoidance

> 5? -@;The "ifference may &ea" to Finish

firms to have HR po&icies that see)

sta'i&ity( security where ru&es are

more c&ear&y esta'&ishe"

Pragmatism 26 38 -12

Te di!!erence may lead to "inis!irms to !ocus more on acieving

#uic$ results and ave strong

concern wit esta%lising tea%solute management rules to save

!or te !uture&

Indulgence 68 '( 11

)*mall inde+ di!!erence,

"inis !irms ave lesser willingnessto realise teir imulses and desires

tan American !irms&

'. va&uate the changes in human resource po&icies an" practices i&&iam shou&"

anticipate coming from ToivonenCs purchase of Tree&in. %f you are i&&iam( what

proactive measures wou&" you ta)e.


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The changes in human resource po&icies an" practices i&&iam shou&" anticipate coming

from ToivonenCs purchase of Tree&in cou&" 'e the fo&&owing/

Su'stantia& changes to HR 3o&icy wi&& 'e app&ie" to 'efit with Toivonen wor)ing

cu&ture$

ToivonenCs cu&ture wi&& 'e strong&y app&ie" as a corporate cu&ture foreign

company in Tree&in as a &oca& su'si"iary$

or) structure change" to se&f-"irecte" teams to accompany ToivonenCs wor)

structure$

3erformance appraisa&s wi&& 'e e&iminate" since emp&oyees wi&& 'e wor)ing in

se&fD "irecte" teams

There wi&& 'e more focus on emp&oyee nee"s as emp&oyeeCs career a"vancement$

F&at organi6ation structure wi&& possi'&y remain

ToivonenCs sa&ary po&icies especia&&y ratio 'etween highest an" &owest

emp&oyees! might 'e a competitive "isa"vantage for Tree&in$

#n&imite" sic) time wi&& 'e app&ie"( to &owere" the a'senteeism rates an" sic)

time ta)en off 'y emp&oyees overa&&$

However( 'e&ow are some of the proactive measures that % wou&" ta)e if % were Scott

i&&iam/

1ffer pre&iminary ana&yses 2 perhaps! recommen"ations to ToivonenCs HR$

1ffer review history of Tree&in specia& emphasis on HR po&icies an" how they fit

with strategic p&ans of the previous owner 2 the )ey success factors of the paper

in"ustry in the #$S$!$

1ffer a pre&iminary assessment of the potentia& cha&&enges that cou&" emerge as

Toivonen starts ta)ing over the operations of Tree&in specia& emphasis on HR this

7


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shou&" 'e the starting point for a Ecu&tura& fitC stu"y4assessment to 'e "eve&ope" in

the short-term!$

3repare a potentia& pre&iminary HR action p&an to 'e a"+uste" accor"ing to the

new changing po&ices$

(. LetCs change this case into another scenario$ Toivonen is 'uying Aisa 3u&p 2

3aper( an esta'&ishe" %n"onesian paper company owen" 'y )a T+ipta wi"+a+a


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c&ose&y &in)e" to SuhartoCs fami&y!$ i&& the a'ove imp&ications action p&an an"

contingencies "iffer. 8p&ain these factors in "etai&s$

%f the scenario change" to the Finish Toivonen ac


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@0


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i!ure 2: inlan" vs. )n"onesian cultural "imensions

Accor"ing to Hofste"e cu&tura& "imension theory there were "ifferences on cu&tura&

"imensions in 'oth Toivonen as a corporate cu&ture foreign company an" Aisa 3u&p 2

3aper as a &oca& su'si"iary as shown in the fo&&owing ta'&e/

Table (: Comparison between inlan" an" )n"onesia base" on Ho%ste"e Cultural &imension

Therefore( four ma+or issues shou&" 'e ta)en into consi"eration when "esigning HR

action an" contingency p&ans for Toivonen to "isperse its corporate cu&ture to &oca&

su'si"iaries in %n"onesia $ The first issue is re&ate" to the "imensions of 3ower :istance $

%n"onesia scores higher than the #S an" Fin&an" on this "imension score of 7! $ Hence

@@

Indexes Indonesia

Finland

Diff

(I-F)

Observations

Power Distance 7 ;; >5 Highest :ifference!

Finish firms prefer f&atter

organi6ations an" sma&&er wage

"ifferentia&s than %n"onesian firms

Individualism @> ; ->? %n"onesian firms are more &i)e&y tofocus on the co&&ective than Finish

firms$ Thus( wor) wi&& ten" to 'e

organi6e" 'y groups an" 'onuses"e&ivere" on group performance

Masculinity > * * High :ifference

Finish firms an" &ea"ers! wi&& &i)e&y

'e more concerne" with emp&oyeesC

we&&'eing an" socia& responsi'i&itythan their %n"onesian counterparts

UncertaintyAvoidance

> 5? -@@ The "ifference may &ea" to Finish

firms to have HR po&icies that see)

sta'i&ity( security where ru&es aremore c&ear&y esta'&ishe"

Pragmatism * ; *>

The "ifference may &ea" to Finish

firms to focus &ess on achieving


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Toivonen shou&" "eve&op its p&ans to tune with characterises of the %n"onesian high

power "istance sty&e which tota&&y contra"icte" to its &ow power "istance sty&e$ Toivonen

shou&" try to a"opt to the fact that %n"onesians emp&oyees are e8pect to 'e to&" what to "o

an" when( as we&& as the communication is in"irect an" negative fee"'ac) hi""en$

The secon" issue is re&ate" to the "imensions of %n"ivi"ua&ism( The fun"amenta& issue

a""resse" 'y this "imension is the "egree of inter"epen"ence a society maintains among

its mem'ers$ %t has to "o with whether peop&eGs se&f-image is "efine" in terms of %I or

eI$ %n %n"ivi"ua&ist societies &i)e peop&e are suppose" to &oo) after themse&ves an"

their "irect fami&y on&y$ %n co&&ectivist societies peop&e 'e&ong to Ein groupsC that ta)e

care of them in e8change for &oya&ty$ %n"onesia scores &ower than the #S an" Fin&an" on

this "imension score of @>!$ Thus %n"onesia seems to a co&&ectivist society whi&e Finish

an" the #S seem to have a %n"ivi"ua&istic society$ Hence Toivonen shou&" "eve&op its

p&ans to re"uce the friction with characterises of the co&&ectivist %n"onesian cu&ture which

tota&&y contra"icte" to its %n"ivi"ua&istic cu&ture$

The thir" issue is re&ate" to the "imensions of 3ragmatism J This "imension "escri'es

how peop&e in the past as we&& as to"ay re&ate to the fact that so much that happens aroun"

us cannot 'e e8p&aine"$ %n"onesia scores higher than the #S an" Fin&an" on this

"imension score of *!$ Thus %n"onesia seems to have more pragmatic orientation

society whi&e the #S an" Fin&an" seem to have a normative society orientation $ %n

societies with a normative orientation( most peop&e have a strong "esire to e8p&ain as

much as possi'&e$ %n societies with a pragmatic orientation( most peop&e "onCt have a

nee" to e8p&ain everything( as they 'e&ieve that it is impossi'&e to fu&&y un"erstan" the

comp&e8ity of &ife$ The cha&&enge is not to )now the truth 'ut to &ive a virtuous &ife$

Hence Toivonen shou&" "eve&op its p&ans to tune with characterises of the pragmatic

%n"onesian cu&ture$

The &ast issue is re&ate" to the "imensions of %n"u&gence( this "imension is "efine" as the

e8tent to which peop&e try to contro& their "esires an" impu&ses$ 'ase" on the way they

were raise"$ Re&ative&y wea) contro& is ca&&e" in"u&genceI an" re&ative&y strong contro&

is ca&&e" restraintI$ u&tures can( therefore( 'e "escri'e" as in"u&gent or restraint$

@*


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%n"onesia scores &ower than the #S an" Fin&an" on this "imension score of ;!$ Thus

%n"onesia seems to have a restraine" society whi&e the #S an" Fin&an" seem to have a

%n"u&gence society $ Hence Toivonen shou&" "eve&op its p&ans to tune with characterises

of the restraine" %n"onesian cu&ture which is tota&&y contracte" to its %n"u&gence cu&ture$

Re%erence:

http/44pre6i$com4o'@'f&


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Appen"i*

Hofste"eCs :imension of u&ture Sca&es 'y ountry

Countr+Power

&istance)n"ivi"ualism ,asculinit+

#ncertaint+

Avoi"ance

-on! Term

Orientation

Ara' or&" 0 ; 5*

Argentina >? > 5

Austra&ia ; ?0 @ 5@ ;@

Austria @@ 55 7? 70

Be&gium 5 75 5> ?>

Bra6i& ? ; >? 7 5

ana"a ;? 0 5* > *;

hi&e ; *; *

hina 0 @5 55 >0 @@>

o&om'ia 7 @; > 0

osta Rica ;5 @5 *@

6ech Repu'&ic ;5 0 >5 0

:enmar) @ 7> @ *;

ast Africa > *7 >@ 5* *5

cua"or 7 ; 7

& Sa&va"or @? >0 ?>Fin&an" ;; ; * 5?

France 7@ >;

,ermany ;5 7 5 ;@

,reece 0 ;5 57 @@*

@>
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,uatema&a ?5 ;7 @0@

Hong Mong *5 57 *? ?

Hungary >5 55 7? ; 50

%n"ia 77 > 5 >0 @

%n"onesia 7 @> > >

%ran 5 >@ >; 5?

%re&an" * 70 ;5

%srae& @; 5> >7 @

%ta&y 50 7 70 75

Namaica >5 ;? @;

Napan 5> > ?5 ?* 0

a&aysia @0> * 50 ;

e8ico @ ;0 ? *

9ether&an"s ; 0 @> 5; >>

9ew Oea&an" ** 7? 5 >? ;0

9orway ;@ ? 50

3a)istan 55 @> 50 70 0

3anama ?5 @@ >>

3eru > @ >* 73hi&ippines ?> ;* > >> @?

3o&an" 55 0 5 7 ;7

3ortuga& ; *7 ;@ @0>

Singapore 7> *0 > >

South Africa >? 5 ; >?

South Morea 0 @ ;? 5 75

Spain 57 5@ >*

Swe"en ;@ 7@ 5 *? ;;

Swit6er&an" ;> 70 5

Taiwan 5 @7 >5 ? 7

Thai&an" > *0 ;> > 5

Tur)ey ;7 >5 5

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#nite" Ming"om ;5 ? ;5 *5

#nite" States >0 ?@ * > *?

#ruguay @ ; ; @00

Pene6ue&a @ @* 7; 7

est Africa 77 *0 > 5> @

@
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Assignment BFT507-Leadership & Strategic Human Resource