INSTRUCTIONS:

1. Answer ALL questions.
2. Your answer paper should be composed of your Cover Sheet and the answers to the questions, numbered as they are on the question paper.

IHRM

Case Incident- Boss I Think We Have a Problem

Universal Steel Door Corporation has been in business for about 20 years, successfully selling a line of steel industrial-grade doors, as well as the hardware and fittings required for them. The company is based in Canada. The company had gradually increased its presence from Ontario and Quebec in Canada, to the New York City area in the USA, and then down the Atlantic coast, then through the mid-west and west. The same approach was also used in expanding into Mexico. The companys basic expansion strategy was always the same: choose an area, choose a distribution centre, hire a regional sales manager, and then let that regional sales manager staff the distribution centre and hire local sales representatives. This method has been very success for the company.

Unfortunately, the companys traditional success in finding sales help has not extended to its overseas operations in Europe. Peter Allen, president of Universal Steel Door, decided to expand the company into Europe. However, the expansion has not gone smoothly at all. He tried his traditional recruitment approach for two weeks to find a sales manager by advertising in an international steel magazine. Although the ads placed in the magazine run for about a month on the magazines Internet website, Mr. Allen so far has received only five applications. One came from a possible viable candidate, whereas, four came from candidates whom Mr. Allen observed were rolling stones people who seem to have spent most of their time travelling restlessly from country-to-country. When asked what he had done for the last 3 years, one told Mr. Allen he had been on a walk about.

Other aspects of his international HR activities have been equally problematic. Allen alienated two of his sales managers by sending them to Germany and Belgium respectively to temporarily run the European operations, but neglecting to work out a compensation package that would cover their relatively high living expenses in both countries. He chose these managers as both of them spoke French and were single.

The sales manager from the USA ended up spending the better part of the year in Germany, he had considerable issues because of his deficiency in being able to speak German. Mr. Allen was rudely surprised to be informed by the Belgian government that his sales manager owed thousands of dollars in local taxes and also might be liable for employment taxation in Belgium and Canada.

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: Ive 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 years 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.

2. 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

3. 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

4. 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