Human resource management HRM: What are the major institutional and cultural differences which separate country X and country Y?

Component 1: “International joint ventures (IJVs) are an increasingly popular form of voluntary co-operation between organizations of different sizes, sectors and geographical locations to satisfy strategic purposes and manage increasingly complex business environments. However, international joint ventures may fail, and HRM plays an important role in their success or failure” (Illes and Yolles, 2002: 1). The process of joining two companies from two different countries raises a number of International HRM issues. In this context, the task for this report will be the following: You are part of a HR team in a new International Joint Venture (IJV) between two companies (company X and company Y) from 2 different countries of your choice in the service sector and you have been asked to give advice in this Cross-border process. You have to develop an analysis about the HR department involvement in the different phases of IJV integration. Discuss the strategic role of the expatriate (International manager) with respect to recruitment and cross cultural training in the IJV process. To meet the expectations you have to formulate a critical report to the board of directors which addresses the following questions:

• What are the major institutional and cultural differences which separate country X and country Y?

• What are the advantages and disadvantages of working in a plural and diverse managerial group comprising the IJV representatives from both countries (X and Y)/ firms?

• What is the role of the expatriate from both companies with respect to knowledge transfer, recruitment and cross cultural training in the IJV in this process?

a) develop an analysis about the major political, economical, social with special emphasis on the institutional and cultural differences in the new IJV(country X and Y). This analysis will be based on a critical evaluation of the relevant literature about the theoretical debate on Institutional approach, Cross Cultural Management and IHRM;

b) discuss the role of corporate and national cultures of both countries (X and Y)/parents firms on the transfer and/or creation of a new organisational culture of the new IJV. This analysis should include the recruitment and cross cultural training strategies to conform the new IJV;

c) draw conclusions and suggest recommendations regarding to a critical approach to IHRM in relation to the IJV process of transfer in practice through your case study