There are multiple issues to be addressed when setting up a multinational company. Issues include the diverse environment, cultural implications and the parent companyâ€™s need for control. Human resource management is affected, as these issues impact the effectiveness and management. It is not common to see staffing policies for the host country are written with the parent's viewpoints, resulting in tensions between parent and subsidiary management. Companies need to desert the headquarters mentality and allow subsidiaries more freedom (Fernandez and Shengjun, 2007). This freedom is more important in framing HR policies. The main point companies must learn is that the HR ...view middle of the document...
After a two-year feasibility study, a decision was made to move forward with the largest investment ever outside the United States, a US$180 million facility to be located in Suzhou, China. The feasibility study concluded that customer demand competitive environment, labor market, local supplier availability and other factors were reasonably favorable, making the decision attractive enough to move ahead (Ward 2006).
Located only 70 kilometers from Shanghai, Chinaâ€™s largest city, Suzhou was known to have a modern but empty industrial park. The Singaporean management team was eager to bring investment projects in and granted necessary concessions to interested parties (Ward 2006). The management team in Suzhou provided Emerson with reports indicating the labor availability, the local vocational schoolsâ€™ pool of young talented individuals and the information that several state owned enterprises (SOEs) were unstable, potentially providing experienced engineering talent. Overall, Emerson believed the environment was attractive to build a diverse high performance team.
Emerson is facing the question: what degree does Emerson need to change the current culture to adapt to the Chinese situation? Concern is also present for this expansion to be the flagship enterprise in this region. I have been asked by the CEO at Emerson to create a global staffing and human resource plan for this acquisition. Past experiences lead me to believe the best way to move ahead is to avoid debates over national cultures and base decisions on Business Culture. The strategy is to build a single strong Emerson culture which will help the company to achieve its business goals in China. The challenge is how to create a culture which is acceptable for the Chinese workforce and will enable the team, at the same time, to give a satisfactory return to the Emerson Board in the United States on their investment in the expansion operation based in Suzhou, China.
Establishing a Single Coherent Culture
To establish a single coherent culture for Suzhou Emerson, the plan is divided into five basic steps. The first step is to lead from the front. In times of change, leadership is all you have in the beginning. The expansion team will need to establish the new direction, guide and inspire the employees and maintain an open door policy in regard to communication. This communication and inspiration will need to continue throughout the entire change process. Emerson has timed this expansion well, as the current state of culture within the Suzhou Company is that of low morale and the awareness that the company is facing a crisis. The current general manager has left, the employees are making demands and anxiety is spreading. The time is perfect for Emerson to plan an exciting future and clearly show the way forward. The Chinese respect strong leadership and clear vision.
Step two is the stage when the mission, vision, and values for Emerson Suzhou are to be...