Hanna Gail F. Emia 22 AUG 2014
GLOBMGT K32 Quiz #2
Lenovo Acquisition of IBM
A. What is the staffing policy that Lenovo is pursuing?
When Lenovo acquired IBM late in 2004, IBM's PC division employees were promised that they will be receiving the same or comparable compensation and benefits that they received under IBM. They can either accept being a Lenovo employee or resign with no separation pay from IBM. Another shocking factor to the change was that the former head of the PC division, Stephen Ward, was appointed as CEO. Lenovo realized that the acquisition would have all been in vain if the key people in the organization leave, thus the decision came about the new CEO. All these ...view middle of the document...
C. What are the strengths of Lenovo's staffing policy? Can you see any potential weaknesses, or problems, that the company might encounter as a result of this policy?
The strengths of Lenovo's staffing policy is that it ensures that they get the best people for the key positions in the company. The geocentric staffing policy works to their advantage since it maximizes their HR's potential. This policy also encourages cultural diversity in their workforce, which is a plus since Lenovo aims to be a global brand and having a multifaceted organization will help achieve that goal. It will also work as a competitive advantage and help ease the transition when they move to other foreign markets if one of their key persons originated from that country. The disadvantage to this, however, is that it can be quite costly to implement. First of all, the geocentric policy aims to get the very best, and this might come with a high price tag since the people they are looking for have the most experience and is quite knowledgeable in their chosen fields. And secondly, it will be quite a transition for Lenovo, a Chinese company, to suddenly have a wide array of nationalities under their wing. As stated in the case, they have no previous experience in terms of globalization and I assume that their company are majorly, if not all, composed of Chinese nationals prior to the acquisition. It will take some time for acculturation in the organization and maybe even some culture clashes may arise due to the cultural differences. In work ethics alone, there are already major differences to...