Both managers had hired approximately thirty local people to staff each of the two distribution…

Both managers had hired approximately thirty local people to staff each of the two distribution centres. However, without full-time local European sales managers, the level of sales was disappointing. To cut his losses Allen takes the decision to fire about half the distribution centre employees in both countries, he sent an email to both managers, with instructions to cut staff. An hour later he got an emergency phone call from his temporary sales manager in Germany: “I’ve just been told that all these employees should have had written employment agreements and that in any case we cannot fire anyone without at least 1 year’s notice, and the local authorities here are really up in arms. Boss, I think we have a problem.”

  1. Based on the description in paragraph 1 what level of globalization has Universal Steel Door Corporation utilized and what approach to staffing is it using. 4 marks.
  1. Discuss two HR activities which Mr Allen and Universal Doors needed to engage in that would not be required in Domestic HRM. Quote examples from the case in support of your discussion. 10 marks
  1. Review the case and complete the following table on your answer sheet: 6 Marks

Term

Example from the Case

Parent Country National

Host Country National

Third Country National

  1. Explain how you would have gone about selecting managers for the European sales managers positions. Justify how your recommended approach will yield better results than that achieved by Mr. Allen. 10 Marks

END OF QUESTION PAPER

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