Comparative human resource management: BHP Billiton expanding on Turkey

Résumé du document

The world market is becoming more integrated; borders are continually eliminated by the constant flow of information, human and financial resources. Globalization and the race for getting the larger market share is forcing companies to opt for new places to operate, cheaper resources, increased productivity and to develop long term relationships with corporative partners and customers. Nevertheless, in every country, companies and governments have different ways of trading and conducting business which makes this race much more difficult. BHP Billiton is definitely an international company: it is involved in over 100 operations in 25 countries and has over 38,000 employees all around the world (BHP Billiton, 2007). Australian company BHP Billiton, formerly BHP and Billiton are Australian and African companies whose core business is the specialization in industrial resources of high quality at competitive prices. Their product portfolio includes petroleum, aluminium, base metals, carbon and steel materials, diamonds and specialty products, energy coal, stainless steel materials and Uranium (BHP Billiton, 2009). This study analyzes a hypothetical expansion of BHP Billiton's operations in Turkey.

Extraits

[...] If we compare Hofstede's results, (see figure we can deduce that Australia is more individualistic than Turkey. Additionally, Turkey is a high masculine country (which implies competitiveness, assertiveness and ambition). Compared to Australia, the power distance index in Turkey is lower, which means relationships are more formal, less equal and power relations can be autocratic or paternalistic. On the contrary, in Australia, people are seen as more equal and the power relationships are more consultative. Lastly, uncertainty avoidance in Turkey is higher than in Australia: rules and structures are preferred. [...]

[...] Istanbul is therefore viewed as the more appropriate place for BHP Billiton to start operations. Cultural Comparisons Turkey is about contrasts: that is, east and west, young and old, traditional and modern, strongly religious and vehemently secular (Stenbjere Dogrusoz 2005). If BHP would like to open a subsidiary in Turkey, then western Turkey should be recommended: the western part of Turkey has advantages for tourism, industry and education. However, the eastern part; known as Anatolia; is lacking in industry, education and has terrorism problems. [...]

[...] The proposal is to evaluate if expanding BHP Billiton operations in the form of a subsidiary in Turkey is feasible. Before advising of the feasibility of this operation, a deep understanding of the differences, especially in terms of HRM practices, culture and industrial relations between the two countries, will be necessary. This will allow raising issues that BHP Billiton will be likely to encounter and suggesting feasible recommendations for a successful operation of the subsidiary in Turkey. Australia-turkey: a good combination for successful transnational operations Since Australia became part of the federation on the 1st of January 1901 when it proclaimed the constitution and gained independence from the British (Denoon, 2000), growth and development increased in such a way that now Australia is a point of comparison for topics such as “health care, life expectancy, quality-of-life, human development, public education, economic freedom, and the protection of civil liberties and political rights” (Worldaudit.org, 2009). [...]

[...] Management Resource Consulting Corporations, (2008), Recuitment retention challenges in the mining Industry, [Online]. Available from http://www.miningsearch.com/recruitment-retention-challenges-in-mining- industry.asp , Accessed O'Neill, G. (1990), Corporate Remuneration in the 1990s, Longman Cheshire, Melbourne Owens, David (2008). Hr In Focus, Sydney, Australia; HR Partners Pucik V. (1985). Strategic Human Resource Management in a Multinational Firm , in V. Pucik, Strategic Management of Multinational Corporations, New York: John Wiley and Sons Punnett, BJ & Shenkar, O . (2004), Handbook for International Management Research, University of Michigan Press, Ann Arbor. Rougier, G & Loyrette, G . [...]

[...] Remuneration An essential element in remuneration is the culture. The Turkish culture is base on hierarchic values and high differentiation of status. It is necessary to adopt compensation strategies that promote and reinforce differences in status. In contrast, the Australian culture is more egalitarian and merit systems have been set up. Moreover, Turkey often adopts collectivist method of rewards based on group performance and individual seniority. It is vital for BHP Billiton's HRM to understand these differences to provide the compensation system which suit the best to the future HCNs. [...]