Our business has adopted an ethnocentric mindset in our subsidiary operations, as performance management tactics undertaken by expatriate leadership in the United Kingdom and Sweden fail to recognise the local culture and labour influence. Further, Lloyd & Hartel (2001) support ethnocentric thinking as the utilisation of staff from HO for the fulfilment of important management positions. Perlmutter's (1969) model of IHRM indicates that ethnocentric mindsets tend to herald home-country business activities, where transparent attempts to integrate American performance management policies are meeting with socio-cultural obstacles and an overall failure to meet performance targets.
Though MPS' domestic policies in relation to human resources management meet with considerable accolades in our HO, these policies are meeting with considerable foreign staff resistance. Therefore, the business' primary objective is to reinforce expatriate leadership to promote more workable performance management targets designed to satisfy the local labour expectations regarding attainable organisational goals. In our Bath, UK operation, Joe Mendes reports a lack of cultural connectivity in relation to American versus British expectations for performance. Mendes faces considerable pressure from a highly unionised subsidiary organisation, in many respects an uncontrollable element of this business division, requiring Mendes to undertake advanced training in the effective management of union environments.
Further, Andy Smith, domestic expatriate manager for Lyons, France division, reports slowdowns to productivity, citing excessive holidays and a failure by domestic labour forces to readily adopt cellular feedback systems, preferring a line manager with more traditional management competency, including technical proficiency and authoritative methodology. Though the cellular feedback system has been a domestic success in Alabama, Smith must recognise that such systems require modification in order to become policies relevant to local expectations.
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