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HR Decisions for International Expansion

XECORPS Decision to Enter Germany

Linda Grace was worried. As she entered the elevator, a number of thoughts went through her mind about what had just occurred in the strategic planning meeting. She had fought long and hard to be included in these meetings. When she first came to XECORP, human resource people were excluded from such meetings. Over time, she had been able to show that her department could offer significant value-added advice to top management. Now she was not so sure.

XECORP intended, she had just found out, to buy out a manufacturing facility in Germany. They wanted a report of the HRM issues associated with running a plant in Germany in two weeks. This was the first time XECORP had done anything beyond the United States besides exporting their product to foreign countries. Now, because much of their export market is in Europe, and in order to avoid possible future trade barriers, top management wanted to set up a subsidiary in Germany. The main reason seemed to be that they had found an ideal manufacturing facility that was for sale, at the right price, and with the right kind of equipment already installed and working.

Linda was an expert in U.S. HRM issues, but she knew nothing about Germany. As the elevator doors opened at her floor, and she walked to her office, she knew she needed to formulate a plan. "How can I go about finding everything I need t know about HRM in Germany to submit a comprehensive report in two weeks?"

Q1. This situation is not all that unusual in the world of international business: namely, having to confront a task about which you know little. How should Linda go about her task? Outline the steps she must take to come up with a good report.

Q2. Analyze the weakness in top management's decision to buy this factory in Germany. What have they not considered in this decision?

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Q1. This situation is not all that unusual in the world of international business: namely, having to confront a task about which you know little. How should Linda go about her task? Outline the steps she must take to come up with a good report.
1. Salary structures: The structure is weak and is not enough to attract, retain and motivate employees with the skills they need. No consistency, different pays for similar positions and too large a portion concentrated in the salary elements. The key HRM issue in running a plant in Germany is that compensation is not directly connected to ...

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