You work in the Human Resource Management department of Saints Construction, a British manufacturer of digging and earth moving equipment for the construction sector. Production facilities are focused currently in Northampton and in Belfast, Northern Ireland. The total UK workforce is 2000 employees (1300 production workers and 700 management, technical and administrative staff). The board has determined that the company should expand overseas and has asked you to prepare a feasibility study. Viable sites for a production facility have been identified in China; Germany and the USA. The new site will employ 1000 workers (principally production staff) and it is anticipated the that Belfast site will close with a loss of 750 jobs there. You are asked to report on. –
• First, the key strengths and weaknesses of the countries as potential sites of investment; which one of the countries you would recommend; and the reasons for your recommendation.
• Second, the benefits and challenges arising from offshoring production in this way.
Third, the implications of your choice for existing company policies on pay and reward (the company currently uses an individual performance management scheme which determines annual pay increases and generates a culling quota in which the bottom 5% of performers each year are potentially dismissed). Would you recommend that these policies are extended to the new site?
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