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Setting Up Your Affiliates Abroad (5-1)

Previously, you built a comparison of two countries (Canada & Philippines: please view the attachment for a "refresher") as global talent bases for recruiting. For this task, you'll revisit those two countries and consider that your company wants to set up operations in both, but the Board of Directors is not sure which one to set up first. You are the global human resource director and the board has asked you to prepare a white paper on the strategic human resource issues the directors need to consider before making their decision. Your paper will analyze the two countries in terms of the company mission and make a recommendation.

Step 1: Create a company profile.

You may choose any type of company, product-based, service-based, or not-for-profit. You may not use your current employer or an existing company as your model.

? If you choose a service-based company, you will set up representative offices in the countries that will deliver your service to the local area only.

? If you are a not-for-profit organization, you will set up an office to deliver either products or services to the local market.

Assume your company is medium-sized, successful, growing, and wants to lead the market with a model human resource strategy.

***Do not make your company model too complex! One paragraph should describe the conditions of your operation. Include the basic purpose of the company and the reason for operations in your chosen countries: Canada & Philippines. For example, what product or service might be helpful in both economies? Almost any will do. Here are some ideas:

? Products: toys, electronics, clothes, furniture, art supplies, or household supplies.

? Services: management consulting, professional training programs, financial services, health services or clinics, systems software development, or security personnel systems.

? Not-for-profit: educational institution, charitable organization, land development, or agricultural advisory services.

Step 2: Consider HR needs.

Once you have selected your company type and described it, consider the human resource needs of the company as a start up in your two countries and answer the following questions in your analysis:

? What type of staff will you need to hire for the initial stages of operations?
? What mix of local versus headquartered staff would be ideal?
? What cultural issues will be important to consider in the host country?
? What human resource organizational structure will be most appropriate to set up a working relationship at the initial stage of operation?
? How much will be done from headquarters versus the local area?
? Where and how will you retain employee records for the newly hired staff? What HR information systems might be used in your global ventures?
? Will you have a local human resource function? If not, when might it be appropriate to establish a local human resource presence?
? What human resource policies would be essential at the initial stage of operation?
? What will be your guiding principle for administering policies at the local level?
? Would you prefer to set up the human resource function in person, or have the manager of the local operation set it up?
? How often will you communicate with the staff and how would you choose to communicate? In person? E-mail? Letter or memo?

Attachments

Solution Preview

Step 1: Create a company profile.

Company Profile: Sure2Last Glassware:

At Sure2Last Glassware, we specialize in the manufacturing and production of low cost cookware and dishware that is durable, reliable, and outlasts the more expensive name brands on the market. Over the past 5 years we have used our patented technology and engineering methods to manufacture a superior low cost alternative cookware (Ren, 2008). Sure2Last has successfully marketed and grown our business in the United States to be highly competitive in our industry. This has spurred our interest in growing our business globally.

Step 2: Consider HR needs.

Once you have selected your company type and described it, consider the human resource needs of the company as a start up in your two countries and answer the following questions in your analysis:

? What type of staff will you need to hire for the initial stages of operations?

Philippines Requirements:

In the initial stages, the human resource requirements for the Philippines will require some significant time and costs. In order to successfully begin the process of staffing, the company will need to deploy one of our top HR managers to the region to connect with a local recruiting firm and begin searching for a local HR manager that meets our requirements. Once a local HR rep has been identified and hired, they will work with the global recruiter in the area to begin developing a staffing strategy to meet the plants needs upon start up once it has been built. We will hire management positions first, followed by wage positions until staffing is fulfilled. This will take an estimated 6 months to 1 year (Philippine Country Monitor, 2012).

Canadian Requirements:

The Canada operation will be less expensive as it is located close to our US operations. An advantage of the Canadian location is that the initial staffing search can be conducted from our headquarters as opposed to deploying HR managers into the territory in Canada. Once an HR manager has been identified for local area, they will work on establishing a strategy to staff the plant upon start up. We will hire management positions first, followed by wage positions until adequate staffing levels are achieved. This process in Canada is estimated to take ...

Solution Summary

The expert examines setting up affiliates abroad. The comparison of two countries is determined.

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