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  • XYZ Post Script-Globalization Wave

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    Kushagr Vivekanand
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    XYZ Post script- Globalization wave XYZ faced increasing competition in its home market and sought to expand globally by setting up factories in Brazil, Germany, and other European countries. However, XYZ failed badly in these ventures as they did not understand the local compensation rules and work cultures. In Brazil, the variable compensation system was disallowed. In Germany, the unions were stronger and less receptive to XYZ's incentive system and HR practices. Based on this experience, in the mid-1990s XYZ learned to adapt their management system to local requirements by hiring local managers, which led to successful later operations in India and China.

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    HRM Case Study

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    XYZ Post Script

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    XYZ Post script- Globalization wave XYZ faced increasing competition in its home market and sought to expand globally by setting up factories in Brazil, Germany, and other European countries. However, XYZ failed badly in these ventures as they did not understand the local compensation rules and work cultures. In Brazil, the variable compensation system was disallowed. In Germany, the unions were stronger and less receptive to XYZ's incentive system and HR practices. Based on this experience, in the mid-1990s XYZ learned to adapt their management system to local requirements by hiring local managers, which led to successful later operations in India and China.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    10 views1 page

    XYZ Post Script-Globalization Wave

    Uploaded by

    Kushagr Vivekanand
    XYZ Post script- Globalization wave XYZ faced increasing competition in its home market and sought to expand globally by setting up factories in Brazil, Germany, and other European countries. However, XYZ failed badly in these ventures as they did not understand the local compensation rules and work cultures. In Brazil, the variable compensation system was disallowed. In Germany, the unions were stronger and less receptive to XYZ's incentive system and HR practices. Based on this experience, in the mid-1990s XYZ learned to adapt their management system to local requirements by hiring local managers, which led to successful later operations in India and China.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    XYZ Post script- Globalization wave

    James Lincoln, the founder of XYZ and long- time CEO had thought that XYZ
    management system would be successful anywhere in the English speaking world.
    Post deregulation in late 70s as XYZ faced increasing competition in home market
    from MNCs like ESAB, it also tried to expand globally. It set up its factories in Brazil,
    Germany and other European countries in first phase and tried to implement same
    management systems including their famed incentive system. They also assigned
    this expansion initiative to highly driven internal managerial talent. However to their
    horror these ventures failed badly one after the other. In Brazil, as they were not
    aware of the compensation rules, the variable compensation was disallowed and
    whatever was paid once became fixed part of ones salary. In Germany the work
    culture was very distinct. The unions were far stronger backed up by the
    governments and institutional/ legal framework in the country; they were also more
    rigid and less keen to always agree to management requirements. The incentive
    system and other HR practices were not really attractive to them.
    Based on this experience, in mid--90s management became wiser and started
    adapting the management system suited to local requirements and also started
    Hiring laterally and local managers. It started tasting success. They have
    successfully running operations in India and China as well today.

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