Introduction
Auto Power isa MNC,operating in twelve different countries of the world, it established in early 19th century. Auto Power had started its operations from a small town of Midwest USA, with a relatively small workforce employed. The founding family of Auto Power was highly committed towards their organization. They played asignificant role in the expansion & successful running of the business; also they have a high influence in strategy setting and implementation.
The organization has a formal chain of command structure, they follow a rule based approach, rather than principle base approach. The employees were provided with ahighlevel of salaries & good perks & privileges, with high job security. This style of management can also be witnessed easily in Auto Power international offices as well.
HR Planning Harvard Case Solution & Analysis
With the passage of time and due to the expanded scope of business and the fact that senior management is getting close to their retirement stage, the company has a need to develop succession strategies to preserve its long-term business perspective with changing dynamic condition within & outside the organization.
Although the company has deep cultural rootsembedded in USA, but due to international presence it would be inevitable for Auto Power that it would not consider the cultural difference of various other countries.
The company has rich history of high values, good business practices & respect the individual self-esteem. Unlike other American companies, Auto Power had not face bitter conflicts & disputes with employees’ unions; itprovides them freedom of choice in case they want to be part of any such union. They also believe in diversity at theworkplace with no restriction based on any ethnic race, color, or religious belief. They have an open policy & regards good human values in discriminative of individual’s material status.
Difficulties Multinational Corporation in Implementing IHRM
MNCs while designing & implementing policies that have a pervasive effect would most likely go to face difficulties due to a number of reasons as there are different regions around the world who use to follow different approaches.
The management style in most of the European nations, particularly the UK where they prefer white collar style jobs, they have a much formal corporate structure with a number of hierarchy involved from top to down in a decision making process. In such system decision-making process is considerably slow, and it involves a large number of tiers of management to implement a change or decision, it is also true that the decision would be taken after developing consensus from a number of senior personals, but once the decision will be taken there would be very little chances of error as it involves the expertise of many professionals.
Whereas in theAmerican style of governance decision making is quick they do consult with experts within & outside the organization based on the importance of the decision, but they usually follow a less formal structure, with few tiers of themanagement style of governance. They also have & implemented acode of good corporate governance, but their working style is less formal, simpler they use to wear jeans & polo shirts. They have fewer restrictions regarding working hours as compared to their counterparts working in other regions of the world especially in Europe................................
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