Analyse the case study.

1. S4 - CASE STUDY
Chapter 4: IHRM in Cross-Border Mergers and Acquisitions, International
Alliances and SMEs: IHRM in Action Case 4.2: Collaboration, Decision-Making
and Loyalty in a German-Chinese Joint Venture: Beijing Lufthansa Center Co.
Ltd
Group member:
Trần Thu Huyền - 19071384
Hoàng Khánh Linh - 19071402
Nguyễn Vũ Hoài Linh - 19071411
Phạm Nguyệt Nhi - 19071455
Ngô Duy Hiếu - 18071087
1. Identifying the key issues of IHRM in terms of collaboration
The main issues of IHRM related to collaboration are:
- Partners do not clarify each other’s goals and objectives. Each party has
different perspectives about how to work efficiently. While Chinese managers
avoid hiring foreign consultants because the cost of hiring is very expensive, on
the contrary, German managers prefer to choose highly qualified people, but
According to them, can only be provided by foreigners.
- In addition, it is taking a very long time for the company as the general
manager can not make any decisions without the Chinese deputy. Based on
regulations to ensure China's legal and cultural environment, the general
manager is required to make decisions only when accompanied by a Chinese
deputy. In some emergencies, if the deputy is absent, the general manager will
not be able to make a decision immediately, so the decision-making process of
the company will become slow and complicated.
2. Identifying the key issues of IHRM in terms of decision making and loyalty
● Decision making
- Time consuming: Due to the conflicts between the two sides, the first issue
here is time consuming to give the final decision. Because the conflicts have to
be addressed amicably as well as proposing another decision which is
acceptable to both sides. Furthermore, the occurrence of the conflicts indicates
that the original proposed option has incompatible goals and values. As a
result, the conflict resolution could be considered as a prerequisite before
discussing and coming to the final decision that would take a lot of time.

2. - The limited regulations: The second key issue here is about their limited
regulations. Although these regulations have their role to ensure that the
Chinese legal and cultural environment was sufficiently respected, the general
manager could not decide anything without the Chinese deputy and decision
processes became slow and complicated. One again, the decision process is
very time consuming due to this issue. The power of the general manager is
almost disabling which not only affects the operation of the joint venture but
also affects the relationship between the general manager and the deputy. This
issue could lead to more conflicts on the way to finding mutual goals and
values.
● Loyalty:
The main IHRM loyalty issues are:
- Loyalty to the parent company is greater than loyalty to the joint venture:
this will be a big threat. It can cause managers not to consider the project as the
biggest concern and also make the decision more time-consuming because the
Chinese manager always wants to consult the parent company. This problem
has frustrated local staff and management on both sides.
- How expatriate managers view their work in joint ventures: For them, their
position is often just another step up in their career and they can lead to a
higher position once assigned.