1: Identify and explain the main issues in this case study

This case study focusses on the folowing issues:-

1.Managing foreign employees in China

As Lenovo acquired IBM's PC Business and set out to become a global company, it started recruiting
non-Chineses citizens who wanted to work in its parent company in China. Lenovo had adopted uniform
employment measures across the company under which foreign employees were given exactly the same
facilities as were provided to Chinese citizens. However, foreigners had their own needs and
preferences, for example most foreign employees disliked the idea of dormitory accommodation which
does not have privacy. Also Chinese management style caused the foreign employees to experience a
kind of cultural shock as this was quite different from the rest of the world. These led Lenovo to face the
issue of managing foreign employees.

2.Managing Chinese graduate returnees from overseas

Many Chinese students preferred to study abroad for their higher education. When these graduates
returned to China to seek employment, they were seen to have very high expectations. They considered
themselves better than those graduates who studied in China and demanded higher salaries, fast
promotions, flexibility and autonomy in their work. Lenovo therefore faced the issue of managing such
Chinese graduate returnees.

3.Gender equalities
When Lenovo acquired IBM's PC Business unit , it winessed a decline in the proportion of women in the
senior management. This was caused particularly due to two reasons:-

a. the acquired IBM Business unit had lower proportion of women in the senior management position as
compared to Chinese operation.

b. Restructuring of the senior management after acquisition after which seniormanagers were recruited
on the basis of competency and connectivity to others in the IT sector. Generally men tended to be
better connected than women. Thus men were preferred over women.

4.Developing a global diversity management strategy

Lenovo work culture requires its employees to respects others rights and privacy. Discriminatory
behaviors are forbidden. However, it lacks guidelines to ensure equal opportunities or diversity
management programmes. Although the IBM unit follows good HR Practices like WLB and DM, these
have not yet been implemented in Lenovo China. Thus it is also an issue.

2. What are the key issues of diversity management in this case study and how are they manifested?
We have already seen the key issues in the previous answer.

These issues were manifested after Lenovo China acquired IBM and set out to be a global industry.

IBM being a foreign company had a different corporate culture as compared to Lenovo China. After its
acquisition by Lenovo, the cultures began to clash. These led to some of the issues of diversity
management as noted in this case study.