TASK FOR EXERCISE 1: Choose and justify which type of person you would recruit for each of the following three

(3) positions at GermanStar Malaysia, a new greenfield assembly-plant facility:

1. Managing Director

2. Production Manager

3. Human Resources Manager

On the Task Sheet your team provides the main reasons, not all reasons, for your choice:

Managing Director

A. Parent Country National (German) - internal - GermanStar or GermanAuto (select either)

B. Parent County National (German) - external

C. Host Country National (Malaysian) - internal - GermanMini

D. Host Country National (Malaysian) - external

E. Third Country National (neither German or Malaysian) - GermanStar or GermanAuto (select either)

F. Third Country National (neither German or Malaysian) - external

Production Manager

A. Parent Country National (German) - internal - GermanStar or GermanAuto (select either)

B. Parent County National (German) - external

C. Host Country National (Malaysian) - internal - GermanMini

D. Host Country National (Malaysian) - external

E. Third Country National (neither German or Malaysian) - GermanStar or GermanAuto (select either)

F. Third Country National (neither German or Malaysian) - external

Human Resources Manager

A. Parent Country National (German) - internal - GermanStar or GermanAuto (select either)

B. Parent County National (German) - external

C. Host Country National (Malaysian) - internal - GermanMini

D. Host Country National (Malaysian) - external

E. Third Country National (neither German or Malaysian) - GermanStar or GermanAuto (select either)

F. Third Country National (neither German or Malaysian) - external

Features that distinguish quality of responses:

1. Argument for choice of each of the 3 positions

2. Use of literature to support argumentsThe Expansion of GermanStar

You are the Human Resources director of GermanStar which is part of GermanAuto Group, a major automobile

manufacturer headquartered in Wolfsburg, Germany. GermanAuto produced over 6 million vehicles in the last

year and has a global footprint, operating in 150 countries with 100 manufacturing facilities across 27 countries.

GermanStar is a fully-owned corporate entity of GermanAuto. It produces a range of high-end luxury vehicles

and is renowned for its use of advanced technology. Despite considerable international growth in the last two

decades, it has been able to maintain consistency and quality of its products through globally standardised

production policies, quality control processes and quality assurance systems.

The top-management team (TMT) of GermanAuto has embarked upon an ambitious and aggressive

international expansion strategy. As a result, it has been decided that GermanStar will make an entry into the

Malaysian market. GermanAuto group currently owns and operates one plant in Malaysia, producing two types

of compact low-cost hatchbacks through one of its other corporate entities, GermanMini.

The ASEAN region is increasingly becoming a 'location of choice' for luxury automotive manufacturing. The TMT

strategy is that through the establishment of a new production facility GermanStar will better service the ASEAN

market, feeding into the growing demand for luxury vehicles. Malaysia was chosen due to its proximity to major

markets, relatively low labour costs, a history of automobile manufacturing pre-dating independence, as well as

a favourable investment climate. The Malaysian Industrial Development Authority, for instance, is stimulating

foreign direct investment by multinationals like GermanAuto through various income and investment tax

concessions, exempting new operations from income tax for the first five years after establishment.

The new assembly plant will be based in the Pekan District. It will enable GermanStar to meet its ambitious

growth and expansion strategy. Like most of its competitors, the organisation will heavily rely on a network of

local and regional components suppliers for its operations. While the initial organisational preference was to

acquire an existing local producer, the workforce of none the potential candidates met skill pre-requisites

required for the organisation's high-quality production standards. Consequently, it was decided to be develop a

greenfield site instead. The new subsidiary, therefore, will face a number of additional challenges including

training and developing a local workforce and establishing a regional supplier network.

TMT has now sought your advice on the best way to staff the key leadership roles within the newly developed

subsidiary - GermanStar Malaysia. The group has a strong culture of internal talent development, allowing

transfers and promotions between its various entities and international subsidiaries. There are three main roles

that need to be filled:

1. Managing Director: this individual will be the highest authority at the new facility, leading the new

subsidiary and overseeing day-to-day management at this new site. This person will be responsible for the

implementation of GermanAuto's key organisational values and objectives, maintaining the exclusive brand

of GermanStar, and will form a critical contact point between headquarters and the subsidiarity. It is further

critical to the role that this person can effectively deal with local officials and authorities, as the organisation

seeks to maximally benefit from the various investment incentives on offer.

2. General Manager Production: this is a technical role requiring expert knowledge in advanced and innovative

auto-manufacturing. The individual is responsible for setting up the new plant as well as the streamlining

and planning of the assembly lines for the entire assembly shop, including cost saving and improvement

activities. Tasks include the completion of planning processes, inbound, logistics storage and operation, as

well as outbound. The individual will be responsible for maintaining the consistency and quality that

GermanStar's vehicles are renowned for, while also ensuring that the plant meets the global production

policies, quality control processes, and quality assurance systems.

3. Human Resources Manager: this individual is responsible for supervising all HR and employee relations

related matters in the new subsidiary. GermanAuto Group has an international reputation for valuing

diversity and inclusion, including in terms of gender, age, race and those with physical disabilities.

GermanAuto also has clear policies in maintaining internal consistency (global HR practices) regarding the

management of employees from recruiting to training and development which are applicable to

GermanStar.