Global Human Resources Lenovo worked hard to integrate Chinese business methods with an international workforce of 27,000 employees. Blending the distinctive national and organizational culture of IBM required hiring managers with a global mind-set and strong international background. Lenovo recruits globally savvy executives from other high-tech firms and hires talented graduates of top universities to incubate them as future company leaders. Compensation packages vary across the Page 3 of 4 globe because of differences in legally mandated benefits, tax laws, cost of living, local tradition, and culture. However, Lenovo strives to have standardized benefits and allowances in their compensation packages such as providing housing and education benefits for employees. In appraising performance, Lenovo managers compare mutually agreed-upon objectives with actual performance at the end of every quarter. Lenovo created a global training program that provides accelerated development opportunities for employees. The firm’s human resources group works with managers to construct career maps and pipelines for every high-potential employee. All employees are asked to examine their career aspirations and the training they need to attain their goals. The career maps are linked to job slots around the world, and employees have much latitude to achieve their dreams. Lenovo employees are ambitious, and senior management is serious about helping them develop their careers. Lenovo human resource managers also ensure routine training and development programmes are provided for all employees to help employees increase their skillsets and talents. Lenovo also embraces diversity, hiring and embracing employees from diverse backgrounds and nationalities who bring vast knowledge and experience to the organization. Workers from various countries bring perspectives that management leverages to perform better in markets worldwide. Global Culture Aiming to foster a global spirit. Senior management has instituted processes aimed at socializing young managers into the Lenovo organizational culture. Nationality doesn’t matter. If an employee demonstrates capability and vision, there are no limits. Socialization creates broad, tacitly understood rules for appropriate action by managers at all levels in global operations. Lenovo managers become well acquainted with the firm’s culture and goals. This guides decisions on company activities and facilitates global knowledge exchange. Connectedness builds trust and cooperation. It encourages communication and interaction. It facilitates the integration and assimilation of new knowledge and capabilities. Lenovo management values the diversity of global cultures and the learning that accrues from foreign business environments. Key employees need to function with a global mind-set and cosmopolitan values. Manufacturing and Value-Chain Management Lenovo concentrates manufacturing at sites in China, Argentina, India, Mexico, and Poland. Production in these low-cost countries generates cost efficiencies and economies of scale. Regional headquarters in the United States and operations in low-cost countries helps diversify sales across advanced economies and emerging markets. While investing huge sums in R&D and innovative product features, senior management maintains a sharp focus on keeping manufacturing costs low. Sourcing of parts and components is done on a global scale. Sourcing from hundreds of highquality suppliers ensures flexibility in logistics and production. Lenovo aims for a leadership position in which it attains a double-digit share in each of the markets where it does business. Management also aims to maintain a sharp focus on its customers, providing them with the most innovative products worldwide. 6. Cross cultural risk remains a very relevant and real threat to Lenovo’s business in international markets. Briefly describe ANY TWO recommendations you would make to Lenovo’s executives on strategies they can use, to address such concerns. A complete answer must include an explanation of how each recommendation can be useful to Lenovo, with specific reference to examples from the case
Global Human Resources
Lenovo worked hard to integrate Chinese business methods with an international workforce of
27,000 employees. Blending the distinctive national and organizational culture of IBM required
hiring managers with a global mind-set and strong international background. Lenovo recruits
globally savvy executives from other high-tech firms and hires talented graduates of top
universities to incubate them as future company leaders. Compensation packages vary across the
Page 3 of 4
globe because of differences in legally mandated benefits, tax laws, cost of living, local tradition,
and culture. However, Lenovo strives to have standardized benefits and allowances in their
compensation packages such as providing housing and education benefits for employees. In
appraising performance, Lenovo managers compare mutually agreed-upon objectives with actual
performance at the end of every quarter. Lenovo created a global training program that provides
accelerated development opportunities for employees. The firm’s human resources group works
with managers to construct career maps and pipelines for every high-potential employee. All
employees are asked to examine their career aspirations and the training they need to attain their
goals. The career maps are linked to job slots around the world, and employees have much latitude
to achieve their dreams. Lenovo employees are ambitious, and senior management is serious
about helping them develop their careers. Lenovo human resource managers also ensure routine
training and development programmes are provided for all employees to help employees increase
their skillsets and talents. Lenovo also embraces diversity, hiring and embracing employees from
diverse backgrounds and nationalities who bring vast knowledge and experience to the
organization. Workers from various countries bring perspectives that management leverages to
perform better in markets worldwide.
Global Culture
Aiming to foster a global spirit. Senior management has instituted processes aimed at socializing
young managers into the Lenovo organizational culture. Nationality doesn’t matter. If an employee
demonstrates capability and vision, there are no limits. Socialization creates broad, tacitly
understood rules for appropriate action by managers at all levels in global operations. Lenovo
managers become well acquainted with the firm’s culture and goals. This guides decisions on
company activities and facilitates global knowledge exchange. Connectedness builds trust and
cooperation. It encourages communication and interaction. It facilitates the integration and
assimilation of new knowledge and capabilities. Lenovo management values the diversity of global
cultures and the learning that accrues from foreign business environments. Key employees need
to function with a global mind-set and cosmopolitan values.
Manufacturing and Value-Chain Management
Lenovo concentrates manufacturing at sites in China, Argentina, India, Mexico, and Poland.
Production in these low-cost countries generates cost efficiencies and economies of scale. Regional
headquarters in the United States and operations in low-cost countries helps diversify sales across
advanced economies and emerging markets. While investing huge sums in R&D and innovative
product features, senior management maintains a sharp focus on keeping manufacturing costs
low. Sourcing of parts and components is done on a global scale. Sourcing from hundreds of highquality suppliers ensures flexibility in logistics and production. Lenovo aims for a leadership
position in which it attains a double-digit share in each of the markets where it does business.
Management also aims to maintain a sharp focus on its customers, providing them with the most
innovative products worldwide.
6. Cross cultural risk remains a very relevant and real threat to Lenovo’s business in international
markets. Briefly describe ANY TWO recommendations you would make to Lenovo’s executives on
strategies they can use, to address such concerns. A complete answer must include an explanation
of how each recommendation can be useful to Lenovo, with specific reference to examples from
the case.
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