International Human Resource Management: Case Study 1

International Human Resource Management: Case Study

Students Name

Class
Institution
City and State
Date

International Human Resource Management: Case Study 2

1. What are the differences between the two positions that GoodFoods need to cover in its
Iberian subsidiary? As VP for Human Resources, what qualities would you require for
the CEO and CFO positions, both for the Iberian branch?
The Chief Executive Officer is responsible for driving the company towards achieving its
goals and objectives. The CEOs role is to ensure that this is done in line with the GoodFoods
mission, vision and values. He or she is also responsible for ensuring competitiveness by coming
up with strategies that will ensure that the company has a competitive edge against the rivals in
the industry. In this regard, the CEO role is to champion innovative strategies that will
differentiate GoodFoods from its competitors.
On the other hand, the Chief Finance Officer is responsible for the accounting department
of the company. His role is to ensure that the company is well able to meet all the financial need
in compliance with the industry standards and ensuring that the companys financial position is
sound for meeting its core objectives and goals.
Qualities of the CEO and CFO
CEO

CFO

CEO required in the GoodFoods need to show

Sufficient knowledge of financial accounting,

great leadership skills. He or she must be

proper management of cash skills, and

mature and much experienced in the business

competent in corporate finance. In this regard,

practices. The CEO could, however, either be

I would select a person who is a recognized

an expatriate or not. The CEO needs to be

CPA and have rich academic background in

decisive and willing to take a stand; as a leader

finance and accounting.

will be looked upon and expected to make

sound judgments and decisions.
I would prefer a married CEO since those are

Be accurate, timely and consistent in their

likely to play the leadership and mentorship

accounting profession and also be able to

International Human Resource Management: Case Study 3

roles more effectively. They also need to be

communicate with mangers, creditors and all

able to separate their job from their personal

stakeholders of GoodFoods.

lives. If they are upset in their families, this

need not be extended to the office.
He or she must be resourceful, energized and

Have a comprehensive knowledge of the

enthusiastic. Must be knowledgeable of the

business fundamentals and proper

GoodFoods operations and product line.

understanding of the operations of the

GoodFoods including its business model.

The CEO must be fluent in Spanish and

The candidate must exhibit leadership skills,

English. He or she must be a good

have strategic vision in regard to not only the

communicator and understand that people are

financial function but also in management. Be

more important than money and show that in

good in team working and a good motivator.

his or her everydays dealings.

The position of a CEO needs someone who is

Must show strong work ethic, hardworking,

able to look at the downside and come up with

self motivated and disciplined. CFOs job may

a backup plan. This is important and keeps

involve long working hours and paying every

them ready for any changes, negative or

attention to even the little detail.

positive.
GoodFoods needs a CEO who has foresight,

Must show that he or she is reliable, can work

that is, ability to see or evaluate the future.

under pressure and produce accurate and

This way they will be able to take up

timely results. GoodFoods needs a CFO who is

opportunities that may present themselves and

result oriented.

be able to explore new markets opening up

other subsidiaries.

2.

What selection process should be used?

After the identification of the right people for the job and describing both jobs, the next

process should be reviewing their resumes. GoodFoods has already done that; next step should

International Human Resource Management: Case Study 4

be conducting interviews and testing. The interviews should be carried out by a panel of
executives such as the Director of Personnel Development, Board of Directors of the Iberian
subsidiary and HRM manager of the parent company. Interviews should be geared towards
identifying the right CEO and CFO in regard to the qualities mentioned above as well as
reviewing their suitability cross- culturally and their technical abilities. Tests should be carried
out on the individuals. These should be with the aim of testing their abilities, aptitudes and skills.
The CFO need to be tested on their financial skills by reviewing their previously completed
works and asked questions that will show their knowledge and understanding of the job position
requirements and the profession.
Personality tests should also be carried out through self report tests. Similarly, cognitive
ability tests would be important to identify individuals mental ability rather than their physical
performance. Quantitative and qualitative tests should also be important with work sample tests
to evaluate quantitative abilities and reasoning tests to evaluate their qualitative abilities.
3. Do you think the selection process should be the responsibility of Human Resources
Spain or USA?
I think the selection process should be the responsibility of the HR USA. The recruitment
and selection of the employees responsibility lies in the parent company or the head offices
department of Human Resource. It is the department that is responsible for major decisions such
as sending expatriates instead of employing the locals.
4.

Which is best: to hire local people or send expatriates? What are the advantages and
disadvantages of each option?

International Human Resource Management: Case Study 5

Advantages and disadvantages of hiring locals

Hiring local people rather than sending expatriates has its advantages. Firstly is the
reduced cost of labor. Some costs of sending expatriates such as travelling, allowances and risk
of failure of the expatriates program are avoided when locals are hired. Secondly, hiring local
people paints a picture that the company has trust in the local citizenry. This goes a long way in
earning their trust, enhancing employee and customer loyalty and gives the local employees
morale at work. Thirdly, the company is recognized by the host country as a participant in local
economy legitimately. This shows that the company has the interest of the locals and is not only
there to transfer wealth to its mother country. Fourthly, employing the locals increases the
chances of the company to be accepted locally by the community. Finally, it shows that the
company is involving the locals in major decision making.
However, employing locals has its downside as well: it becomes difficult for the
company to be able to meet the demands of the locals and international or global priorities.
Secondly, the company may find it difficult to make major decisions such as concerning layoffs.
It may only lay off employees when its unavoidable in which case the damage may have
already been made. This is becomes more costly for the company. Another disadvantage is that
the control of the subsidiary by the head office or parent company is reduced and finally,
restricting employment to locals only may raise difficulties in recruiting qualified personnel.
Advantages and disadvantages of sending expatriates
On the other hand, advantages of sending expatriates include the fact it becomes possible
to transfer management or business practices. Secondly, the parent company (GoodFoods) is able
to have direct control and closer control and coordination of its subsidiary. Thirdly, the
employees are given a multinational orientation even as they work in the parent company.

International Human Resource Management: Case Study 6

Another advantage is that the company is able to gather experienced executives internationally.
From the case GoodFoods, the company has an option of hiring Howard and Finn who are
Americans; Girardin, Belgian; and Antonio who is a Spanish. Finally, the locals may not have
the technicalities required or may not be of value compared to the expatriates.
An expatriate program, however, has its downside: first, it is challenging for the
expatriates to adapt culturally to the foreign environment. Secondly, the local community may be
having a negative attitude towards foreignness of the subsidiary. The increased cost attributed
to the program is also a factor to consider. These include transfer cost, salary and others.
Fourthly, expatriation tends to have a negative effect on the morale and motivation of the locals.
There is need to cope with the regulations and restrictions imposed by the host country
government.
Based on the gravity of both options in concern to their benefits and limitations, the best option
for the GoodFoods would be to send expatriates.
5. In general, what should companies consider when managing expatriates?
Major factors that need to be put in the math are international taxation, relocation and
orientation, language translation, relationship with the locals and the host- government and
expatriates administrative services (Dowling, Festing & Engle, 2008, p. 5).
In addition to professional capability, companies should also consider the willingness of the
expatriate to relocate. Their suitability in adapting to new environments is also a critical factor to
consider. In this concern, intercultural competency is vital which includes communication and
social skills, interpersonal skills and cultural empathy. Family support is also a factor to

International Human Resource Management: Case Study 7

consider. Studies have shown that spouses have high influence in the performance of an
expatriate (Black and Stephes, 1989).
Expatriate managers are required to be competent in managing overseas assignments. The
environment is characterized by political unrest, fluctuating economic situations and changing
competition levels. These call for the expatriate to be flexible and be ready to change the
structure of the organization when need be. Ability to deal with complexity of the conditions and
adaptability are key factors to consider in managing expatriates.
Other factors involve the perception of the locals in having foreign executives and also
the rules and regulations affecting expatriation. Some host countries have restrictions in regard to
expatriation. The cost of labor and benefits analysis in regard to locals and expatriates needs to
be assessed.
6. Do you think that an improvement in the management of expatriates can positively
influence the results of the company? How and why?
Management of expatiate is one of the most challenging tasks for a company that is
operating internationally. Despite, this proper management of the expatriates positively
influences results of the company. The most important factor is proper orientation of the
expatriates and proper training in preparation for a different environment with different culture.
Effective management of expatriate will lead to choosing the right human resource, which will
lead to an effective organization. The most important resource in driving an organization to
success is the human resource. Effective management of the human resources will see to it that
an organization is meeting its core goals and objectives.

International Human Resource Management: Case Study 8

Choosing the right expatriates will help a company be able to seize opportunities in the
unexploited markets and grow to become a multinational corporation. Sales revenues are
increased and the business grows and its brand image is enhanced; this creates customer loyalty.
7. If you were in place of Bill Bowling, what would you do? What HR policies would you
propose John Shaver in order to improve the expatriate program that currently exists and
that does not seem to be very successful?
First thing that Shaver should consider doing is to identify causes of failure of the
program. Some of the factors may be culture shock, lack of cross- cultural training and using the
program as a way of sending employees who seem to be problematic.
Shaver should consider giving the expatriates time to adjust to the new environments.
Expatriates and their families need to have time to become familiar with the new surroundings.
Similarly, after going back to their motherland, they need to be given time readjust since
workplace and general environment are no longer familiar.
Another issue that needs special attention is selection of employees. This is because
expatriates work under minimal or no supervision so self driven characters that are result
oriented would be required. Choosing inappropriately may go unnoticed until it is too late due to
the distance. To choose the right personnel, Shaver should consider cultural sensitivity to be part
of the selection criterion, have a special board of expatriates to carry out the selection process
and evaluate and consider the willingness or the opinion of the family and spouses. Additionally,
experience in the international ventures need to be considered as well as evaluating the foreignborn employees since they are the best suitable for future expatriate programs.

International Human Resource Management: Case Study 9

Lack of training could be the main contributing factor to failure in the expatriate
program. Training should be focused on cross- culture where an expatriate is prepared for
international markets. This is done through cultural and area briefings, culture assimilator and
experiences in the field where one is given time to pre-visit the new environment.

International Human Resource Management: Case Study 10

Reference List
Black, J, S, & Stephens, G, K, 1989, The influence of the spouse on American expatriate
adjustment and intent to stay in Pacific Rim overseas assignments, Journal of
Management, 15(4), 529-544.
Dowling, J, P, Festing, Marion & Engle, D, Allen, 2008, International Human Resource
Management, Thompson Learning, Bedford Row, London.