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    Asimco Pratiik 100704114942 Phpapp02

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    Kundi_7
    This case study examines the international human resource management issues faced by ASIMCO, a Chinese automotive parts manufacturer, as it expanded globally. Some key I-HRM issues included a lack of skilled managers experienced with international business, political influences hindering strategic decisions, and difficulties bridging cultural differences between expatriate, local, and third-country national employees. To overcome these challenges, ASIMCO implemented strategies like political engagement, recruiting globally to find qualified managers, operational restructuring to remove political interference, and developing local Chinese managers through training programs. Performance management, incentives, and developing a shared organizational culture also helped professionalize management practices.

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    Asimco Pratiik 100704114942 Phpapp02

    Uploaded by

    Kundi_7
    88 views4 pages
    This case study examines the international human resource management issues faced by ASIMCO, a Chinese automotive parts manufacturer, as it expanded globally. Some key I-HRM issues included a lack of skilled managers experienced with international business, political influences hindering strategic decisions, and difficulties bridging cultural differences between expatriate, local, and third-country national employees. To overcome these challenges, ASIMCO implemented strategies like political engagement, recruiting globally to find qualified managers, operational restructuring to remove political interference, and developing local Chinese managers through training programs. Performance management, incentives, and developing a shared organizational culture also helped professionalize management practices.

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    This case study examines the international human resource management issues faced by ASIMCO, a Chinese automotive parts manufacturer, as it expanded globally. Some key I-HRM issues included a lack of skilled managers experienced with international business, political influences hindering strategic decisions, and difficulties bridging cultural differences between expatriate, local, and third-country national employees. To overcome these challenges, ASIMCO implemented strategies like political engagement, recruiting globally to find qualified managers, operational restructuring to remove political interference, and developing local Chinese managers through training programs. Performance management, incentives, and developing a shared organizational culture also helped professionalize management practices.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    88 views4 pages

    Asimco Pratiik 100704114942 Phpapp02

    Uploaded by

    Kundi_7
    This case study examines the international human resource management issues faced by ASIMCO, a Chinese automotive parts manufacturer, as it expanded globally. Some key I-HRM issues included a lack of skilled managers experienced with international business, political influences hindering strategic decisions, and difficulties bridging cultural differences between expatriate, local, and third-country national employees. To overcome these challenges, ASIMCO implemented strategies like political engagement, recruiting globally to find qualified managers, operational restructuring to remove political interference, and developing local Chinese managers through training programs. Performance management, incentives, and developing a shared organizational culture also helped professionalize management practices.

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    of 4

    INTERNATIONAL INSTITUTE OF PLANNING AND MANAGEMENT

    AHMEDABAD

    SUBMISSION
    ON

    International HRM

    Case Study

    ASIMCO

    Submitted To:

    Professor Robin Thomas

    Submitted By:

    Pratik K S Negi

    SS/09-11/ISBE/HR
    Q1. Write a Brief on the company Asimco?

    Ans- Is a company that is established by Jack Perkowski, ex- Wall Street employee.he came to know
    about the motor vehicle part industry, thus he established the company. thus the motive behind the
    company was to become a OEM for the major companies that are existent in the world and provide the
    best of the featured products at an optimal rate using the best of the Manpower and technological
    advancements that can be done in China. ASIMCO Manufacture a wide range of products including
    diesel fuel injection components and systems, noise vibration and harshness (NVH) products,
    compressors, brake and suspension components and assemblies, and engine components such as
    camshafts, piston rings and cylinder blocks and heads.

    ASIMCO Technologies has substantial capabilities in


    key processes such as ferrous and aluminum castings
    and NVH products, which combine several materials
    technologies.

    ASIMCO Technologies built significant market share in China, it started to examine overseas investment
    opportunities. Europe, with its dynamic automotive industry, established mass-production makers and
    large aftermarket made it the obvious choice for expansion. As a vital European market with a long
    history of automotive innovation, ASIMCO Technologies chose the UK to aid its growth and ensure it
    could be close to key manufacturing facilities

     Right now (2002) it had 15 manufacturing operations in 10 provinces and 36 sales offices.
     Products that are produced are utilized in

    1> Engines
    2> Cars
    3> Trucks
    4> Tractors
    5> Bikes

    Also exported to many countries like -


    1. US
    2. Europe
    3. Japan
    4. Southeast Asia

    Major partners that included ASIMCO were as under


     Bosch
     Caterpillar
     Chicago Rawhide
     Delco Remy America
     Delphi
     Honeywell
     Nippon Steel ring
    Q2. Kindly highlights I-HRM issues in the case?

    Ans- internal HRM issues that have cropped up for the company to get itself established in china can be
    under listed as below..

    1. Manager having traditional approach of managing things as State was under the control of the
    profits and other parameters of governance.
    2. Not having a proper skill sets and hand on experience to face the international pressure.
    3. 2 SEPARATE extremes of managerial candidature for the positions that were to be fulfilled

    Three cadre of managers available and the company was facing difficulty to implement and
    bridge the gap between management and the task force

     Expatriates Adopted but failed technique


     Third country nationals

     Develop Chinese managers (started working on the same)

    Other issues faced

    Replacements – political linkage were established that was a real hurdle in the way for any strategic
    implementation.

    Q3.Kindly elaborates the strategies to overcome these issues?

    Ans- there was a strategic initiative that was taken for resolving the issues and thus a clear categorized
    solution was adopted for the same which included…

    Restructuring

    Political appeal—was utilized for influencing the political environment to make sure proper task force
    was under proper management.  Improved production

    Recruitment -- were made for new minds and better caliber to enter the organization, head hunting,
    internet and referrals were used. also recruitments from competitors and allies was utilized, plus a
    {glocal} kind of a recruitment was utilized to make sure that any person at a management level has a
    local plus global exposure.

    Media linkage – to make sure that the illegal encroachments and disputes can be solved

    Operational control -- new appointments were made and old recruits who were involved in the biased
    decision making or were political influenced were taken off. their aim was to removal of any sort of
    corruption and also any sort of distortion in the working
    TALENT IS WHAT IS INSIDE

    Involvement of third party – Hewitt associates (consultants), plus diagnosing the goals and what
    company asks from the employees.

    Vision

    Core purpose core values GOALS

    Even the communist employees were utilized for the same. to spread the power of the word “ WE “,
    company norms, activities and staff and organizational values.

    DEVELOPMENT and IMPLEMENTATION


    Of
    MANGEMENT TOOL

    Incentive system – managers scales were depending on the operating EBITDA, also reduction of Bad
    debts, ( no issues were left with the late payment)

    - Criteria of educational level on managers Pay scales.


    - Bonus system and current level of salary classification made sure that the EMP sat index remain
    high.
    Forum and meetings

    (Strategy incubation, new orientation to process, quarterly results, share experiences and error
    removal)

    Quality & Training-- international benchmark were utilized for getting best results ( Six Sigma)
    - Functional training (JIT, lean and other methodologies)
    - Improved importance on studies

    Performance management and Leadership

    - Goal setting, feedback and coaching were included


    - LDP (leadership development program) – practical training and hand on experience
    - Effective GAP filling and replacement technique

    Commitment and trust


    - Language was not a barrier for moving up the ladder in the organization,
    - Sense of self responsibility was developed within the employees.

    Thus BY these methods the issues were handled

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