International Human Resource Management Literature review

International Human Resource Management - Literature review Example Pancevo which operates with three different brands Weissar, Karlbrew and Starivo, merged with Eden Brewery which operates in Russia, Ukraine, Romania, Moldova and Kasakhstan. The joint venture was officially registered on the 25th of August 2003 and the company was renamed Eden Weisser. After the joint venture Eden not only injected a good flow of capital into the organisation but also resorted to quality enhancement measures such as pasteurisation, product rebranding with a new logo, reshaping the bottles and crates, introducing new plastic bottles and relaunching the Weisser brand. Problems in an International Joint Venture The most important feature of any joint venture is the cross cultural differences that two or more organisations located in different countries have to undergo. Cultural differences often influence the manner in which the partners in the joint venture make strategic decisions and solve problems. For example, the Japanese organisations tend to see interfirm allia nces primarily as interpersonal relationships whereas American organisations view them as endurance of design irrespective of the specific managers that are involved. Performance related pay is more popular in USA than in Germany or Japan. Again, recruitment in USA is a short term action as compared to France, UK and Germany. Training and career planning is the most extensive part in USA. Interpartner differences in avoiding uncertainties and long term orientation have a significant negative effect on the survival of the joint venture while differences in power distance, masculinity and individualism do not have any effect on the survival of any joint venture. The structure of parent control also influences the stability of any joint venture. Dominant management structure can minimise coordination costs and hence outperform shared control joint ventures. However, unequal distribution of ownership gives majority shareholders greater power which can be detrimental to the interest of t he minority owner. A balanced ownership is always advocated so the partners’ bargaining power is evenly matched. Ventures that have split ownership have greater chances of success than the ventures that are dominated by one company. Performance of ventures with a shared rate of control is greater. For example, one organisation has a mechanistic culture that is bureaucratic and hierarchal with clearly defined rules and regulations. The other organisation has an organic culture which means that the organisational structure is informal, non-bureaucratic and decentralised. These fundamental differences in culture will result in a severe conflict in the organisation. It was found out that the mutual understanding of each other`s culture is very essential to a successful relationship between two companies. Expatriation management is also an important feature of any cross-cultural joint venture. Expatriates assignment predominantly