Teradyne: on the Road to China

Competing in global markets entail many factors and centralization of its human resource practices is certainly vital to improve global competitiveness and empower employees for global assignments. To achieve success in global marketplace, the challenge of all businesses regardless of their size is to understand global corporate cultural differences and invest in human resources which includes selecting and retaining talented employee, training and development whilst encouraging employees to be innovative and creative. Employees selected to work in foreign locations should be prepared beforehand with adequate cross-cultural training. For an organization to be successful in the international marketplace, it must be concerned with this fit from both an internal and

Teradyne is a 45 year old corporation specialized in testing equipment for transistors and other electrical components of the semiconductor industry. The company was founded in 1960 by two MIT graduates with a vision to bring a line of reliable, fast testing equipment to the industry. As the complexity and volume of components manufactured by their customers

International business meshes across multiple domains most notably market entry strategies and sociocultural variances. Factoring in those two critical aspects and giving them the right amount of attention is the separating line between success and failure. Terralumen, Blue Ridge, and Delta are all successful companies; However, by not observing the basic requirements of

The semiconductor industry thrives due to rapid technological advancement and innovations contributed by various countries of the world. Where European Union and United States have been leading the industry, the Asian countries are now

Selection and performance management programs that are designed for organizations that have expanded their U.S. workplace to other countries must be designed to take in many other considerations that normally wouldn’t make a difference if all the employees were from the same origin. Expatriate employees and their families should be assisted to help with adjusting to their new culture. Performance management and selection programs should be designed to incorporate the differences in ethical and cultural backgrounds that match the employees and or applicants who are overseas. This paper further examines what is necessary for selection and performance management programs for a U.S. based organization that is expanding overseas to China.

While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the

This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.

Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,

As we all known, Sony and Matsushita are two of the largest consumer electronic makers in Japan or even in the world. And in this reading, it points out the different strategies Sony and Matsushita use when they were facing the fierce competition in China ----- Matushita was accelerating its pace on stretching the supply chain in China while Sony unexpectedly decided to shift some of its manufacturing business in China back to Japan. In this article, I will discuss the reasons that lead them to make different decision as well as analysize the advantages and the disadvantages of their decision.

Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.

This cases study examined the challenges of operating a business in a foreign country. The case study presents a specific business situation in Moscow, describes the prevailing conditions which needed to be addressed, relates the decisions that were made, and examines the consequences of failing to apply sound business and management principles. This case exemplifies many of the themes in international HR management including recruiting, onboarding, training and development, motivation and rewards/compensation, ethics, performance management, and cultural differences between the home country and host country.

In today’s economy, China is one of the fastest growing countries. China has rich resources, which has become the leader of export around the world. China is developing rapidly, causes many eyes staring at this flourishing opportunity. For companies with a global outlook, having a foothold in China is a growing necessity. Foreign companies’ rapid expansion in China and the relative scarcity of highly trained local personnel mean many US and other foreign firms find it necessary to import key personnel for their China operations. In today’s global environment, companies often send their employees across the world in order to improve the organization 's performance and stay competitive.

Teradyne corporation was found forty five years ago started started by to classmates Alex d’ Arbeloff and Nick Dewolf from Massachusetts Institute of technology (MIT)in the late 1990’s. In 2004 they were having 6000 employees with a sales if 1.8 billion dollars. Teradyne corporation work in four main units semi-conductor test (64% revenue),assembly test,broadband test, connection system and diagnostic solutions.Since it was against Teradyne 's way of life to command the utilization of any particular apparatuses, it was surrendered over to individual divisions and directors to choose which suggestions to take after. A few divisions of the organization immediately grasped the methodology, while others appeared to oppose or basically overlook them. The recent was frequently a wellspring of strain at month to month EPIT gatherings where building administrators were relied upon to cover advance in their divisions. Indeed, even inside of divisions, advancement was profoundly variable. Some task directors took after the stage door model, occupied with more point by point undertaking arranging.

For the research to be comprehensive and impressive, I have chosen a company that has made a significant entry in the domestic consumer electronics market in India very recently. The consumer electronics sector has shown substantial growth over the last few years, which are attracting the giant players of this industry towards India. This industry has presented to be very flourishing in the last few years and provides employment to millions of people making it one of the biggest growing markets. Nowadays companies are considering the macroeconomic factors and government drive i.e. “Make in India”, and believing in India’s positioning of its manufacturing base in this industry.

Globalisation, as an integrated and independent world economy, has contributed to the rapid expansion of international trade and world’s economic growth (Paik & Vance, 2006; Mutsuddi, 2012). The increase presence of global firms is shifting domestic HR towards global HR in addition to carry out a wider span of HR responsibilities (Losey, Meisinger & Ulrich, 2005; Rao, 2010; Jie, 2011; Mutsuddi, 2012). The generation of cross-border labour market also had brought human resource management into an international context (Mutsuddi, 2012).