This case study examines the international human resource management issues faced by ASIMCO, a Chinese automotive parts manufacturer, as it expanded globally. Some key I-HRM issues included a traditional Chinese management approach, a lack of skilled managers experienced with international business, and difficulties bridging cultural divides between expatriate, local, and third-country national employees. To overcome these challenges, ASIMCO pursued strategies like political engagement, targeted recruitment of global talent, operational restructuring, training programs, performance management, and building commitment through shared values and incentives. The goal was to develop a skilled, aligned workforce capable of supporting ASIMCO's growth in China and overseas markets.

1. INTERNATIONAL INSTITUTE OF PLANNING AND MANAGEMENT
AHMEDABAD
SUBMISSION
ON
International HRM
Case Study
ASIMCO
Submitted To:
Professor Robin Thomas
Submitted By:
Pratik K S Negi
SS/09-11/ISBE/HR

2. Q1. Write a Brief on the company Asimco?
Ans- Is a company that is established by Jack Perkowski, ex- Wall Street employee.he came to know
about the motor vehicle part industry, thus he established the company. thus the motive behind the
company was to become a OEM for the major companies that are existent in the world and provide the
best of the featured products at an optimal rate using the best of the Manpower and technological
advancements that can be done in China. ASIMCO Manufacture a wide range of products including
diesel fuel injection components and systems, noise vibration and harshness (NVH) products,
compressors, brake and suspension components and assemblies, and engine components such as
camshafts, piston rings and cylinder blocks and heads.
ASIMCO Technologies has substantial capabilities in
key processes such as ferrous and aluminum castings
and NVH products, which combine several materials
technologies.
ASIMCO Technologies built significant market share in China, it started to examine overseas investment
opportunities. Europe, with its dynamic automotive industry, established mass-production makers and
large aftermarket made it the obvious choice for expansion. As a vital European market with a long
history of automotive innovation, ASIMCO Technologies chose the UK to aid its growth and ensure it
could be close to key manufacturing facilities
 Right now (2002) it had 15 manufacturing operations in 10 provinces and 36 sales offices.
 Products that are produced are utilized in
1> Engines
2> Cars
3> Trucks
4> Tractors
5> Bikes
Also exported to many countries like -
1. US
2. Europe
3. Japan
4. Southeast Asia
Major partners that included ASIMCO were as under
 Bosch
 Caterpillar
 Chicago Rawhide
 Delco Remy America
 Delphi
 Honeywell
 Nippon Steel ring

3. Q2. Kindly highlights I-HRM issues in the case?
Ans- internal HRM issues that have cropped up for the company to get itself established in china can be
under listed as below..
1. Manager having traditional approach of managing things as State was under the control of the
profits and other parameters of governance.
2. Not having a proper skill sets and hand on experience to face the international pressure.
3. 2 SEPARATE extremes of managerial candidature for the positions that were to be fulfilled
Three cadre of managers available and the company was facing difficulty to implement and
bridge the gap between management and the task force
 Expatriates Adopted but failed technique
 Third country nationals
 Develop Chinese managers (started working on the same)
Other issues faced
Replacements – political linkage were established that was a real hurdle in the way for any strategic
implementation.
Q3.Kindly elaborates the strategies to overcome these issues?
Ans- there was a strategic initiative that was taken for resolving the issues and thus a clear categorized
solution was adopted for the same which included…
Restructuring
Political appeal—was utilized for influencing the political environment to make sure proper task force
was under proper management.  Improved production
Recruitment -- were made for new minds and better caliber to enter the organization, head hunting,
internet and referrals were used. also recruitments from competitors and allies was utilized, plus a
{glocal} kind of a recruitment was utilized to make sure that any person at a management level has a
local plus global exposure.
Media linkage – to make sure that the illegal encroachments and disputes can be solved
Operational control -- new appointments were made and old recruits who were involved in the biased
decision making or were political influenced were taken off. their aim was to removal of any sort of
corruption and also any sort of distortion in the working

4. TALENT IS WHAT IS INSIDE
Involvement of third party – Hewitt associates (consultants), plus diagnosing the goals and what
company asks from the employees.
Vision
Core purpose core values GOALS
Even the communist employees were utilized for the same. to spread the power of the word “ WE “,
company norms, activities and staff and organizational values.
DEVELOPMENT and IMPLEMENTATION
Of
MANGEMENT TOOL
Incentive system – managers scales were depending on the operating EBITDA, also reduction of Bad
debts, ( no issues were left with the late payment)
- Criteria of educational level on managers Pay scales.
- Bonus system and current level of salary classification made sure that the EMP sat index remain
high.
Forum and meetings
(Strategy incubation, new orientation to process, quarterly results, share experiences and error
removal)
Quality & Training-- international benchmark were utilized for getting best results ( Six Sigma)
- Functional training (JIT, lean and other methodologies)
- Improved importance on studies
Performance management and Leadership
- Goal setting, feedback and coaching were included
- LDP (leadership development program) – practical training and hand on experience
- Effective GAP filling and replacement technique
Commitment and trust
- Language was not a barrier for moving up the ladder in the organization,
- Sense of self responsibility was developed within the employees.
Thus BY these methods the issues were handled