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Global Human Resource Management Casebook The Global Human Resource Management Casebook is a collection of business teaching cases focusing on human resource (HR) management issues around the world. Each case is based in a single country and illustrates one or more significant challenge faced by managers and HR practitioners. The influence of the unique national, cultural, and institutional context upon the issues in the case is emphasized. In total, 33 unique and original cases are presented, each from a different national context. Every case is followed by a set of questions for use in class discussion or private study of the cases. James C. Hayton, PhD, is the David Goldman Professor of Innovation and Enterprise, and Director of the Centre for Knowledge, Innovation, Technology, and Enterprise at Newcastle University. His research focuses on the role of human resource management and human capital in promoting innovation and entrepreneurship in new and established organizations. Michal Biron is a lecturer at the Graduate School of Management, University of Haifa (Israel), and a visiting researcher in the department of Human Resource Studies at Tilburg University (the Netherlands). Liza Castro Christiansen, DBA and MBA, is a visiting academic fellow at the Henley Business School, University of Reading, England. Liza is an external lecturer at the Copenhagen Business School and a senior lecturer at the Aarhus Business Academy in Denmark. Bård Kuvaas is Professor of Organizational Psychology at BI Norwegian School of Management in Oslo. His research interests include behavioral decision making (e.g., mood and framing, cognitive styles, and decision making), organizational behavior (e.g., intrinsic motivation, social exchange theory, intragroup conflict), micro-HRM (e.g., the relationship between HR practices/HR systems), and HR outcomes (e.g., performance appraisal, training, pay and compensation, supportive HR practices, and perceived investment in employee development). Routledge Global Human Resource Management Series Edited by Randall S. Schuler, Susan E. Jackson, Paul Sparrow and Michael Poole Routledge Global Human Resource Management is an important new series that examines human resources in its global context. The series is organized into three strands: Content and issues in global human resource management (HRM); specific HR functions in a global context; and comparative HRM. Authored by some of the world’s leading authorities on HRM, each book in the series aims to give readers comprehensive, in-depth, and accessible texts that combine essential theory and best practice. Topics covered include cross-border alliances; global leadership; global legal systems; HRM in Asia, Africa, and the Americas; industrial relations; and global staffing. Managing Human Resources in Cross-border Alliances Randall S. Schuler, Susan E. Jackson, and Yadong Luo Managing Global Legal Systems International employment regulation and competitive advantage Gary W. Florkowski Managing Human Resources in Africa Edited by Ken N. Kamoche, Yaw A. Debrah, Frank M. Horwitz, and Gerry Nkombo Muuka Global Industrial Relations Edited by Michael J. Morley, Patrick Gunnigle, and David G. Collings Globalizing Human Resource Management Paul Sparrow, Chris Brewster, and Hilary Harris Managing Human Resources in North America Current issues and perspectives Edited by Steve Werner Managing Human Resources in Asia-Pacific Edited by Pawan S. Budhwar International Human Resource Management (second edition) Policy and practice for the global enterprise Dennis R. Briscoe and Randall S. Schuler Managing Human Resources in Latin America An agenda for international leaders Edited by Marta M. Elvira and Anabella Davila Global Staffing Edited by Hugh Scullion and David G. Collings Managing Human Resources in Europe A thematic approach Edited by Henrik Holt Larsen and Wolfgang Mayrhofer Managing Human Resources in the Middle-East Edited by Pawan S. Budhwar and Kamel Mellahi Global Leadership Research, practice, development Edited by Mark Mendenhall, Gary Oddou, Allan Bird, and Martha Maznevski Global Compensation Foundations and perspectives Edited by Luis Gomez-Mejia and Steve Werner Global Performance Management Edited by Arup Varma, Pawan S. Budwhar, and Angelo DeNisi Managing Human Resources in Central and Eastern Europe Edited by Michael J. Morley, Noreen Heraty, and Snejina Michailova Global Careers Edited by Michael Dickmann and Yehuda Baruch Global Talent Management Edited by Hugh Scullion and David Collings Global Human Resource Management Casebook Edited by James C. Hayton, Michal Biron, Liza Castro Christiansen, and Bård Kuvaas First published 2012 by Routledge 711 Third Avenue, New York, NY 10017 Simultaneously published in the UK by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2012 Taylor & Francis The right of James C. Hayton, Michal Biron, Liza Castro Christiansen, and Bård Kuvaas to be identified as the authors of the editorial material and, of the authors for their individual chapters has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging in Publication Data Global human resource management casebook / editors, James C. Hayton ... [et al.].     p. cm.    Includes index.    1. Personnel management–Case studies. 2. Industrial relations–    Case studies. 3. Human capital–Management–Case studies.    I. Hayton, James C.    HF5549.G5388 2011   2011003719    658.3–dc22 ISBN: 978-0-415-89370-1 (hbk) ISBN: 978-0-415-89371-8 (pbk) ISBN: 978-0-203-80761-3 (ebk) Typeset in Times New Roman by HWA Text and Data Management, London Printed and bound in the United States of America on acid-free paper by Sheridan Books, Inc. Contents List of Illustrations List of Contributors Foreword Preface Acknowledgments Part I Western Europe 1 Belgium: How Innovative Staffing Solutions Can Make a Difference: The Case of Selecting Blue-Collar Workers for the Port of Antwerp viii x xxi xxiii xxvi 1 3 Filip Lievens and Britt De Soete 2 Germany: Retaining Talent in Times of Crisis: Opportunities for the Robert Bosch Group in the Context of the German Industrial Relations System 12 Marion Festing 3 Italy: Luxottica: Changing Italian Labor Relations and HR Practices to Drive Sustainable Performance 22 Silvia Bagdadli and Arnaldo Camuffo 4 Netherlands: HRM and Culture at RetailCo 33 Corine Boon and Deanne N. Den Hartog 5 United Kingdom: A Restatement of the “Employer Brand”: The John Lewis Partnership 44 Graham Dietz and Pamela Nwanze Part II Scandinavia 59 6 61 Denmark: Grundfos Invests in Talent Liza Castro Christiansen 7 Finland: Implementing a Global Diversity Management Initiative in Finland Adam Smale and Ingmar Björkman 72 vi • Contents 8 Iceland: Merger, Culture, and HRM: The Marel and Stork Case 85 Ingi Runar Edvardsson and Gudrun Berta Danielsdottir 9 Norway: Comparing Internally Consistent HR at the Airport Express Train, Oslo, Norway, and Southwest Airlines, Dallas, TX, USA 101 Bård Kuvaas and Anders Dysvik 10 Sweden: At the End of the Road: The Process of a Plant Closure 112 Magnus Hansson Part III Central and Eastern Europe 125 11 Bulgaria: telerik: HRM in a Bulgarian Software Company 127 Lucia F. Miree and John E. Galletly 12 Czech Republic: Impact of Managerial Decisions on Company Crisis Occurrence 141 Martina Königová 13 Poland: Reward Management in Small and Medium Enterprises: Alfa i Omega, Głogów, Poland 150 Peter Odrakiewicz and Magdalena Szulc 14 Russia: Succession Planning at Eldorado 164 Anna Gryaznova 15 Slovenia: On Becoming a Truly Global Player: The Global Talent Management Challenge at Trimo 176 Robert Kaše Part IV Mediterranean, Middle East, and Africa 191 16 Cyprus: People Management in Academia: Anna-Maria Harilaou’s Story 193 Eleni Stavrou 17 Ghana: Employee Retention during Institutional Transition: A Case Study of PIGAMU 203 David B. Zoogah 18 Israel: Implementing a New Production Design and Reward System 217 Michal Biron 19 Jordan: The Jordan Company of Hospitality Education 227 Muhsen A. Makhamreh 20 Uganda: Beyond Boundaries: HR Strategic Alignment and Visibility at Zain Uganda 236 John C. Munene 21 United Arab Emirates: Developing the Local Workforce in a Rapidly Growing Economy Scott L. Martin and William M. Solomon 242 Contents • vii Part V Asia and Pacific Rim 251 22 China: Performance Management at Shenhua Guohua Electric Power 253 Gong Yaping and Yang Weiguo 23 Hong Kong: Engaging the Next Generation of Leaders at MostClean Hong Kong 266 Christina Sue-Chan and Clara To 24 India: Leveraging Human Capital for Business Growth: A Case of ICICI Bank, India 276 Radha R. Sharma and Philip Abraham 25 Indonesia: Performance and Talent Management in Indonesia: The Case of XYZ Company 289 Budi W. Soetjipto, Jimmy Sadeli, and Munandar Nayaputera 26 Malaysia: Malaysia Airlines: Talent Management in a Turnaround Situation 299 Rozhan Othman and Wardah Azimah Sumardi 27 Singapore: Alexandra Hospital: Realizing the Value of Older Workers 308 Audrey Chia and Angeline Lim 28 New Zealand: New Zealand Qualifications Authority 318 Jarrod Haar Part VI The Americas 329 29 Canada: Building a Culture of Inclusion at the Royal Bank of Canada: Strategies for Aboriginal Peoples and Newcomers to Canada 331 Maria Rotundo 30 Chile: Development of Self-managed Teams at S. C. Johnson & Son in Chile 343 Andrés B. Raineri 31 Costa Rica: Tim Smith and the Central America Investment Institute 356 Brosh M. Teucher 32 Mexico: Mexican Experiences from a Danish Firm: “Changing” Mexican Culture 368 Jacobo Ramirez and Laura Zapata-Cantú 33 United States of America: Southwest Airlines 382 Randall S. Schuler, Steve Werner, and Susan E. Jackson Index 395 Illustrations Figures 1.1 3.1 5.1 5.2 6.1 8.1 8.2 8.3 10.1 10.2 10.3 11.1 11.2 11.3 11.4 13.1 13.2 14.1 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 16.1 17.1 18.1 18.2 19.1 19.2 22.1 22.2 22.3 23.1 Screenshot of computerized crane operator simulation Luxottica HR department worldwide organization The John Lewis Partnership ‘virtuous circle’ HRM in the John Lewis Partnership The 10 competencies associated with being a Grundfos talent Marel expected growth Number of Marel employees 2005–2009 Prioritizing activities at Marel Productivity development January 2000–March 2003 Productivity development January 2002–August 2003 Understanding fluctuation in productivity during the plant closure process telerik’s mission displayed in company lobby Sales dashboard by telerik The work environment Programming in pairs Total average monthly gross wages and salaries in Polish złoty and US dollars AIO’s organizational structure Eldorado operations—geographical overview Examples of Trimo’s solutions Trimo’s “Path to Excellence” (annual mottoes) Trimo’s complete solutions operations Trimo’s regional sales structure in 2009 The number of domestic and foreign employees Scholarships by area The pitfalls of the deteriorating construction market The structure of Trimo Group’s total revenues Total profit of the Trimo Group Hierarchy of academic positions at Zenon University Structure of leadership in PIGAMU Structure of the production unit at Bamco New structure of the production unit at Bamco JCHE overall organizational structure JAU organizational structure Guohua Power organizational structure GHEPC’s performance management system, operations Rules for a forced distribution performance management system at GHEPC Structure of each MostClean business unit 7 29 46 48 65 89 93 96 117 117 118 127 132 133 135 153 156 165 177 178 179 181 182 183 188 188 188 194 205 220 221 233 233 256 258 259 267 Illustrations • ix 30.1 S.C. Johnson’s Viña del Mar plant Operations Department structure held previously to the Self Managed Teams Implementation 30.2 New structure implemented at S.C. Johnson’s Viña del Mar plant Operations Department 30.3 Parallel structures developed at the S.C. Johnson’s Viña del Mar plant in order to implement Self Management Teams in its production processes 30.4 Key findings of the SWOT analysis conducted by the Implementation Committee 345 347 349 350 Tables 0.1 2.1 3.1 7.1 8.1 14.1 14.2 14.3 14.4 25.1 32.1 32.2 32.3 Cases and topics Macroeconomic effects of the global economic and financial crisis Italian plants of Luxxotica Diversity management implementation tools used in Petrocom Finland HRM practices in firms in Britain, Denmark, the Netherlands, and Iceland in 2003 Evolution of monthly salaries in Russia (EUR) Culturally endorsed leadership styles in four countries Responsibilities of outlet managers and supervisors Components of the comprehensive assessment procedure Employee composition at XYZ Company (Indonesia) based on position levels Novo Nordisk’s Values Configuration of High-Performance Human Resource Practices according to Bamberger and Meshoulam Configuration of High-Performance HR Practices in Novo Nordisk Mexico xxiv 13 26 77 91 167 170 172 173 290 372 373 377