Ernst & Young, the company and its environment
This article aims to analyze the similarities and differences between the practices of human resources management of two subsidiaries of the company Ernst & Young, working in different cultural contexts, or Montreal and Monterrey (Mexico).
The data collected in this study come from desk research.
This study is divided intothree parts :
- A presentation of context, followed by
- A description of practical human resource management in both subsidiaries.
- A comparative analysis will complement this case study.
Ernst & Young was founded in 1864, in Toronto, by Thomas Clarkson. The management bold visionaries marked the history of this organization, become a world power in its field. The company employs about 11people in 4000, in 700 offices in 140 countries.
Ernst & Young offers financial services checking, certification, business risks, insurance consulting and actuarial consulting investigate fraud, disputes technology and security risks and support the transaction.
1.2 Description of the two subsidiaries
The Canadian subsidiary has 15 offices across Canada, including the headquarters of Toronto.It employs about 4 000 people, including 2 500 in Montreal. The male / female ratio is 54% women and 46% of men. The average age is 34 years.
The Mexican subsidiary has 250 employees including 80% are aged between 25 and 30 years. There is a ratio of 70% men and 30% of women. This ratio is a reflection of a culture whose character is male. In the model of Hofstede, masculinity refers to thevalues of success and possession of values that are called men. The so-called feminine values refer to the social and mutual. More roles between men and women are different, the more the company will be called male, over the roles are interchangeable, the more the company will be called women. Among the countries where the masculinity index is highest, we find the Caribbean countries of Latin America,including Venezuela, Colombia and Mexico.
2. The practices of human resource management
We will review the organizational structure and three facets of human resources in the two subsidiaries: training, pay and staffing.
2.1 The Canadian practices
With the international standardization of Ernst & Young, the outline of the human resources system are dictated by the global headquartersin New York. According to a human resources specialist in eastern Canada, despite the short distance of the subsidiary hierarchical Montreal, the structure is characterized by multiple divisions within the human resources department.
The organizational culture training is based on the quality and success. The training is part of the culture of the organization. For example, expenses for traininglinked to employment will be fully reimbursed to the employee. The leaders rely on the quality of their employees both professionally and their know-being, where the strategy: "people first". It represents the value of human quality. Indeed, the following quotation, taken from the website, provides a better understanding of this strategy: "We want the success of our people. The success of oursociety depends on them, so we strive to provide an environment where talent can develop and flourish. "
According to the consultants Montreal office, the junior employees spend on average ten days of training per year and executives spend an average of four. These days of training, combined with monitoring provided by the Chartered Accountants of Quebec, as it contributes greatly to the quality ofthe workforce. In addition, the company is subject to the Act 90, Quebec special training, non-existent in Mexico. The company largely exceed the minimum of 1% for the training of its employees. According to the two managers met, training is not only calculated according to the law and is a major boost to the company in terms of skills.
The remuneration has some specifics in Montreal. 17% of...
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