CONSTRUCTO has had a terrible time attempting to manage its host nation workforce. There are likely many

Fantastic news! We've Found the answer you've been seeking!

Question:

CONSTRUCTO has had a terrible time attempting to manage its host nation workforce. There are likely many reasons why the division is having so many problems. However, a lack of training and improper compensation structures for its host nation employees appear to play significant roles. CONSTRUCTO will need to address these challenges before they can hope to see any progress in removing productivity bottlenecks, compliance problems, and performance shortfalls in the division. Prepare a management report for CONSTRUCTO's executive management team that recommends how to improve the company's management of host nation employees in Vietnam.

First, address why CONSTRUCTO Vietnam's performance pay scheme and firing of underperformers appears to be having the opposite effect from what the company intended - namely, an actual decline in sales performance and compliance.

Record CONSTRUCTO's current management practices mentioned in the case, specifically the performance pay and firing of underperforming staff. Describe the results of these practices on team performance and morale.

Compare Hofstede's cultural dimension values for Uncertainty Avoidance, Power Distance, Individualism, and Masculinity between the United States and Vietnam (from Module 1). Analyze how Vietnam's cultural differences may translate into specific compensation and non-monetary motivational reward schemes and practices. Then, describe why CONSTRUCTO's practice of applying standard compensation schemes and motivational practices borrowed from their US operations is not working in the Vietnamese context.

Create a new "Compensation Plan" (can include both monetary and non-monetary rewards) for the host nation workers in Vietnam that appropriately aligns with their cultural values and attributes. Include at least one idea from each of the four cultural dimension differences.

Second, examine how CONSTRUCTO can support compliance and performance through new training programs.

Outline a new training program for host nation frontline workers (i.e. warehouse, sales, and administrative personnel).

What classroom topics or courses should host nation employees take once they are hired by the company to inform them of CONSTRUCTO and USA practices and expectations?

Should there be any recurring or longer-term training requirements?

What informal or "outside the classroom" training experiences could be facilitated by the company?

Outline a training program for host nation managers.