Week 6 Case 2 - Bavarian Auto Works in Indonesia (Germany/Indonesia) 1. What role should HR play in the development of this IJV? HR should be involved in all four stages of IJV development from creation to implementation and beyond. In stage 1 (formation) HR identifies reasons for forming the IJV, plans for the utilization of its potential benefits, selects managers for new business development, finds potential partners, selects partners, understands control, builds trust, manages conflict and negotiates the arrangement. In stage 2 (development), HR locates the IJV and deals with the local community, establishes the appropriate structure, and gets the IJV management team. In Stage3 (Implementation), HR establish the visions, mission, values,
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HR will need to be involved in the negotiation of the approach the partners will take to combination, as this will involve issues of HR and workforce. A helpful approach to increase one's options in negotiating across cultures is to carry out in advance as part of your preparation a cultural review or a cultural audit of the other cultures, the following viewpoints are examples of culture differences to review: cultural sensitivities, customs, history, communication style - direct or indirect, relationship building, including "shared experiences", decision-making style, choice of negotiating language, attitude to time - monochronic or polychromic, business etiquette and socializing, importance of "face", non-verbal signals, and attitude to hierarchy, seniority, age, professional status (Hurn). BAW HR and JEA HR? BAW and JEA HRs will need to interact with each other at their interface, maintain internal boundaries that are essential for their survival, and establish the specific role of HR within the new venture (Gong 2005). JBAW HR? JBAW HR handles issues that are relevant to the acquisition, building, and motivating of human capital within the venture subsystem. The relational or interface HR set includes HR issues situated at or near the point of exchange between the venture and parent subsystems along their boundaries (Gong …show more content…
What cultural problems do you foresee in the relationships between the Germans and the Indonesians? Some cultural problems would be language, communication, and relationships varying cultural dimensions between Germany and Indonesian such as power distance / hierarchy, individualism, masculinity, and uncertainty avoidance. In negotiations? Indonesians have a slow paced negotiation style, few negotiation decisions are made at the table their overall negotiation process is slow and they do not want to be pushed for a decision. Germans want to get right down to business without any socializing. Indonesians like to build relationships on a personal, social, and business level while the Germans can take a long time to establish close business relationships (Tarique, Briscoe, and Schuler 506-507). In day-to-day operations? Due to the extreme differences we see in power distance and individualism as well as some other cultural dimensions that are less variant but still different such as masculinity and uncertain avoidance, we will likely see challenges in management and hierarchy, work styles, and communication. Germans having a low power distance score shows that they are highly decentralized, control is disliked, and leadership is challenged to show expertise, Indonesians are high in power distance and depend on hierarchy, management controls and delegates, control is expected and employees expect to be told what to do and when. Germans are individualist their loyalty is
HR will need to be involved in the negotiation of the approach the partners will take to combination, as this will involve issues of HR and workforce. A helpful approach to increase one's options in negotiating across cultures is to carry out in advance as part of your preparation a cultural review or a cultural audit of the other cultures, the following viewpoints are examples of culture differences to review: cultural sensitivities, customs, history, communication style - direct or indirect, relationship building, including "shared experiences", decision-making style, choice of negotiating language, attitude to time - monochronic or polychromic, business etiquette and socializing, importance of "face", non-verbal signals, and attitude to hierarchy, seniority, age, professional status (Hurn). BAW HR and JEA HR? BAW and JEA HRs will need to interact with each other at their interface, maintain internal boundaries that are essential for their survival, and establish the specific role of HR within the new venture (Gong 2005). JBAW HR? JBAW HR handles issues that are relevant to the acquisition, building, and motivating of human capital within the venture subsystem. The relational or interface HR set includes HR issues situated at or near the point of exchange between the venture and parent subsystems along their boundaries (Gong …show more content…
What cultural problems do you foresee in the relationships between the Germans and the Indonesians? Some cultural problems would be language, communication, and relationships varying cultural dimensions between Germany and Indonesian such as power distance / hierarchy, individualism, masculinity, and uncertainty avoidance. In negotiations? Indonesians have a slow paced negotiation style, few negotiation decisions are made at the table their overall negotiation process is slow and they do not want to be pushed for a decision. Germans want to get right down to business without any socializing. Indonesians like to build relationships on a personal, social, and business level while the Germans can take a long time to establish close business relationships (Tarique, Briscoe, and Schuler 506-507). In day-to-day operations? Due to the extreme differences we see in power distance and individualism as well as some other cultural dimensions that are less variant but still different such as masculinity and uncertain avoidance, we will likely see challenges in management and hierarchy, work styles, and communication. Germans having a low power distance score shows that they are highly decentralized, control is disliked, and leadership is challenged to show expertise, Indonesians are high in power distance and depend on hierarchy, management controls and delegates, control is expected and employees expect to be told what to do and when. Germans are individualist their loyalty is