Strategic Human Resource Management Assignment
Performance Management Systems
Performance managements systems are the key to the employee performance in any organization as it decides how motivated the employees would be to work to achieve the goals of the organization. This becomes all the more important in a cross cultural context when the organization is making an international entry to a different country. At the beginning the company should focus on getting the goals right and then ensure that the employees are aligned towards the goal by making sure that they design the performance management systems in such a way that they are in line with the goals set by the organization. This would also give the management a direct control over the systems and processes and take the necessary actions as and when there is a deviation (Heracleous& Barrett, 2001). IKEA should ensure that the performance management system and the tools that are used for the same are flexible in nature given that they are entering into a new market and at the same time there would be multiple changes that would happen in the business environment over a period of time. They will have to decide how they would manage the performance management system for the domestic employees and for the expatriates. It is always advisable to have a performance management system that is uniform for all section of the employees. One of the most important things that the HR managers will have to do is to make sure that they clearly define these policies to the employees and may be take their opinion on these before the implementation. By consulting with the employees while deciding the key performance areas would help them get a concurrence from the employees and at the same time they would be taking up the onus of these responsibilities upon themselves. The performance management systems should be periodically reviewed to check if it is able to achieve the main objective of attaining the company goals and changes has to be made so that the performance matrices set by the organisation is actually able to attain what it aims to achieve. The organization should not only have a performance management system in place, but they should actually have a training process that would identify the weak areas of the employees and help them in the skill development. This would not only help the organization in filling up the talent gap that they have but this would help the employees in gaining a sense of well-being within the organization and they would tend to stay longer with the organization (Caldwell, 2001). Performance management system design especially at the beginning should be done in consultation with the domestic stakeholders to ensure that it is fair and is as per the existing norms of the country. There should be a provision for job rotation and job expansion that would interest many employees in taking up the roles that they would like do and hence get an added responsibility that they would like to have and perform. They should also look at having fast track programs for the performers so that the employees would be motivated to put in that extra effort in moving up the ladder. One of the important decisions that they will have to take is the succession planning program that is linked with the performance of the employees. They will have to get a mix of people both from the domestic set of employees and expatriates to have an equal mix of people leading the company from the top (Alvesson, 2001). They should also ensure that they design their performance management system keeping an eye on their expansion plans within the region. Many a time’s companies make the mistake of not having a long term view while designing the performance management plan and hence they make the employees strive short of what they could actually achieve (Chuang et al, 2004).This strategic Human Resource Assignment Solution is provided by Oz Assignment Help.
Managing the human resources, while making an entry into a foreign country, is a tough task and one of the most important ones as it drives the business. IKEAs entry into South Africa and how the human resources would be managed in the whole process is what we would be discussing in this section. Even though they have made entry into various foreign countries, this would still be a new assignment for the organization as the geography differs and so does the culture.
Read more about International HR Management.
One cannot simply move into a different country and try and fit in their organizational culture into the employees in the country. First thing that they will have to ensure is that they have to try and match the local culture and make the necessary changes in HR policies to suit the environment. IKEA cannot manage to have all expatriates working for them in South Africa. They should have a fair mix of local people working for them. The HR should ensure that the rights of all people are protected and hence should design the HR policies that gives equal rights to all the employees be it local or expatriate. All the expatriates should be first trained to meet the company goals and they should be exposed to the culture that they will be dealing with in the organization (Mayfield, 2011). This would require good amount of planning from HR managers because they will have to clearly decide how they are going to take the HR policies forward. All the employees should be mapped on a talent scale and the skill gaps should be identified and sufficient training should be given to them so that these gaps are being covered. Employee retention is one of the most important factors in any international assignment. This is all the more important for IKEA as they are newly entering into the market and they cannot afford to make mistakes in getting the right talent on board (Chaudhry et al, 2009 and Stopford & Wells, 1972).
Attracting good talent:
Good HR policies would attract good talent to the organization and it is the responsibility of the HR managers to make sure that they design the compensation packages and the job roles that would help them to get the right set of talent on board (Mayfield, 2011). Once they have the necessary talent pool within the organization, they will have to chart out the career plan for these employees and they should be trained on the skills that they lack. Job rotation and a wider job design can help the organizations in getting employees to work for them for a long time (Marler, 2006 and Phillippe, 1993). The next focus that the HR managers should have is to ensure that the employees stay long with the organization as they cannot afford to replace thee talent that they have acquired and trained within a short span of time. One of the most common problems that most of the organizations face while making an international expansion is that they don’t get their employees to stay with them for a long time due to differences in work culture etc. that would be an additional financial burden on them (Harrington, 2005).
Long Term Career Plan Advancement:
The policies that they should adapt in terms of career advancement also should ensure that all the employees have an equal chance of career advancement irrespective of their origin. The company should make these policies clear to the employees so that they will also get a feeling that the organization cares for them and would be willing to put in extra effort to do what they have been asked to do. It would be ideal if they can get some of the local employees in their management and other key decision making positions mainly because this would help IKEA in ensuring that they take an informed decision while making any key decision as the local nationals would be aware of the existing situation and how various companies would have dealt with similar situations in the past (Marler, 2006 and Dowling & Welch, 1999).
Decentralisation of power:
Decentralisation of power is one of the key things that they can try here where each employee will have the authority to take decisions that is related to the job role that he is handling and this would give a sense of confidence to the employees and at the same time the top management would be relived of taking some of the simpler decisions that is best taken at the grass root level. This would also ensure that the work is not hindered because of the lengthy decision making process and they will have the best idea how deal with the situation as the people who are directly related to a particular issue is taking the decision on the same (Rosenzweig, 1994).
There should be proper communication channel where the employees can voice out their opinion and they should encourage their employees to come out and speak when they are taking important decision. This would also ensure that there is a flow of knowledge within the organization and this can help them in avoiding conflicts in most of the situations. Managing conflicts in such a context is the next important thing that they will have to be careful as conflicts are bound to happen in a multi-cultural environment (Koivisto, 1992). Open communication channels within the organisation can ensure that any differences can be sorted out effectively without the whole issue getting blown out of proportion.
Entry into a foreign land is a path that the HR managers will have to tread carefully as it might be the make or break factor for them. For any IKEA, they will have to let go of their original work culture and try to adapt to the culture that is existing in the country, thus design a new one that is beneficial social management for the organization to ensure that it is successful while making the entry into the country. They should also be open to changes based on the changes in the environment rather than being immobile with its HR policies.
IKEA while making an entry into the South African market should ensure that they have a greater control on the proceedings rather than outsourcing important functions to domestic vendors. They will have to get the right mix of human talent both from domestic and also they should get the expertise of their seasoned professional from abroad. The HR managers will have to so a balancing act while managing these changes and have to ensure that the HR policies are not entirely imported but they should be localised to ensure that these policies work on ground. They should get the commitment from their employees on the work and at the same time they will have to take their opinion while designing the HR policies in the organization as they have a greater understanding of the things at the ground level. The policies that they design should be flexible in nature and the management will have to work closely with the team to ensure that they implement these effectively (Analoui, 2007). Implementation is the key to having a great plan and this is possible with the periodic reviews and making the necessary changes that are required. The commitment from top management is the most important thing in any SHRM plan and they will have to be a part of the major decision making process while designing the policies (Anthony &Govindarajan, 2001). They should also ensure that HR function is involved in the core business decision making process so that they are not isolated and at the same time they are aware of where the top management plans to take the organization in the near future and design the systems accordingly. Most importantly, the management should be flexible to change according to the local culture and adapt to the situation rather than trying to be stubborn with the policies that were successful elsewhere.
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