NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
Hiring & Incentive strategy for Human resources working on international expansion to enable a speedy growth
Submission Date & Time: 2021-11-21 02:04:19
Event Name: NMO S4 Sprint One - IIM Visakhapatnam
Solution Submitted By: Pranavi
Assignment Taken
HUMAN RESOURCES DEPARTMENTCase Understanding
Based on the case, the problem areas could be the following w.r.t the HR department: 1. Recruiting and hiring • Finding the suitable talent is critical and should be delegated with utmost care. • There should be no discrimination while recruiting, the education background and skills should be tested thoroughly as they could mean or be limited to some extent in other regions. • We should also look at the market, the average pay scale, the concentration of the talent w.r.t the job role. • Background verification is also important. 2. Employment regulations Safety regulations and healthy work environment is necessary, the office location and accessibility, the working hours, overtime compensation, employee termination process, allowances for travel and food etc are to be suited to the region. 3. Payroll If we want to hire and remotely pay then we need to outsource payroll, else we need departments there also for payroll. One should have enough knowledge about the laws, insurance, tax etc for this. 4. Compensation and benefits The compensations should be in line with the government rules in the respective countries, also the minimum wage rate, work hours etc are important factors to be checked based on the region where we want the people to work. What could be a motivation for people to continue working also depends with the place they live in. The employment laws, minimum wage rate, festival holidays, cost of living, taxes are also to be noted and acted accordingly. 5. Cultural differences This is the utmost important thing because there would be serious consequences if a behavior or body language makes one offended. Empathy is also needed if working in a foreign region. There shouldn’t be any bias based on these factors. Everyone’s culture should be acknowledged and not overlooked. 6. Supporting the employees and providing necessary training The skill level and type could vary with the geographic location, to keep everyone on the same page is a difficult task and time taking, The training would depend on the recruitment. 7. Language barriers while communicating As different countries have different languages, accents in which they communicate, it acts as a barrier. In case of barriers, hiring the translators would be adding to the cost which is not feasible. There should also be a proper medium that enables effective communication whenever needed.BCS Solution Summary
W.r.t the HR department, main concerns one could face when expanding to other location depends on the type of recruitment we follow: 1. if the recruitment is of the locals there, then communicating effectively to them to properly manage would be the main concern. 2. if recruiting from India, then proper training and travel are to be focussed We chose the latter because of the associated benefits to it like Cost effective • Better knowledge of the product • Relatively easy to find the talent and convince • Easy to manage from offshore After recruiting and training the allocation would be as- one head office per country- followed by sub-offices if the region is vast, then travel expenses and stay would be provided at the same place to build a strong relationship as a team and for an easy commute by the company. Other details are mentioned in the solution.Solution
The management principles used are:
- Principle of Scientific Selection:
The person who is apt and interested for the job is selected and based on the merit and not biased.
- Principle of Effective Communication:
Communication is ensured by regular meetings and online connection using software applications so that there is no barriers.
- Principle of Maximum Individual Development:
Opportunity of working abroad, with travel allowances and other benefits and hikes helps in rewarding their ability, productivity and increase the efficiency.
- Principle of High Morale:
For motivation and high morale, best wage policy is employed and the code of ethics to be followed as an employee are stated and ensured to be practiced.
- Principle of Team Spirit:
The cooperation, unity and trust will be developed by arranging regular events, allocating nearby or at same place so that the activities are feasible and helps them get familiar with each other. This would build team spirit and helps in tackling difficult times.
- Principle of Dignity of Labour:
Recruiting the people interested in the job and giving them proper training would help them like and work for the job more
- Principle of Fair Reward:
There is impartial approach in treating the employees and enough rewards are given based on the sales they make and the reach of the company.
- Principle of Effective Utilisation of Human Resources:
The number of resources is need based and the number would be increased in future based on demand. So, the usage of the HR is done efficiently.
Hiring Strategy:
We have planned on recruiting the workforce from India and train them to work in the middle east.
Our reasoning for the decision is:
- Cost effective
- Better knowledge of the product
- Relatively easy to find the talent and convince
- Easy to manage from off shore
We will be hiring as mentioned below:
- There will be 1 head office each in UAE, Kuwait, Bahrain and Qatar
- There will be sub offices in UAE, there will be a Head Office (HO) and a sub-office (SO) in Dubai.
- Each department would have a lead and employees. The numbers are given below:
UAE Sub-offices
Dubai HO (1 HO + 1 SO)
Fin (20+1)
HR (5+1)
IT (5+1)
Sales & Marketing (5+1)
Management/Strategy (5+1)
Salesforce: 100+10
Abu Dhabi (1)
Fin (9+1)
HR (2+1)
IT (2+1)
Sales & Marketing
Management/Strategy (4+1)
Sharjah (1)
Fin (9+1)
HR (2+1)
IT (2+1)
Sales & Marketing
Management/Strategy (3+1)
Umm Al-Quwain(1)
Fin (1+1)
HR (1)
IT (1+1)
Sales & Marketing
Management/Strategy (2+1)
Ajman (1)
Fin (1+1)
HR (1)
IT (1+1)
Sales & Marketing
Management/Strategy (2+1)
Ras-Al-Khaimah (1)
Fin (1+1)
HR (1)
IT (1+1)
Sales & Marketing
Management/Strategy (2+1)
Dubai (1 HO + 1 SO)
Fin (9+1)
HR (2+1)
IT (2+1)
Sales & Marketing
Management/Strategy (3+1)
Fujairah (1)
Fin (1+1)
HR (1)
IT (1+1)
Sales & Marketing
Management/Strategy (2+1)
For Kuwait, Qatar & Bahrain: 1 HO each (personnel same as Dubai HO)
Salesforce: K+Q+B=100+60+20
The pay scale is different based on the job role, the details are mentioned in the finance department solution.
After hiring, there will be training,
- To make them understand and adhere to the laws and regulations of their respective country.
- To make them understand the company code of ethics and obligations for them to abide by.
- Signing bond to not leave the company for 3 years from their date of joining.
- Special training for the sales personnel on the soft skills and product details.
Then we would work on their visa and other onboarding requirements and ensure best work experience.
The stay would be together for the entire staff within a country, so that the communication is faster.
Incentive strategy:
- This would include two-way travel allowances twice a year to help them go to their home,
- Leaves for festivals, maternity, sick and bereavement
- Regular events to ensure motivation and team building in the organization, these events would go in hand with the budget allocated.
- The mandatory provisions are the insurance and medical cover and gratuity if they complete 7 years with the company.
- Rewards would be based on the work/sales they make- for the sales team, based on office conduct and work efficiency for the in-office employees.
The total budget for HR activities is 10000000Rs which would be used for the above purposes. The salary, accessories are covered in the finance and IT department solutions.
Conclusion
To conclude, we are going with the Middle east region, starting with UAE, Bahrain, Quwait and Qatar, because of the demand for the Indian food and the relatively less competition compared to other regions. With respect to HR Dept, the hiring would be Indians as they understand the product well and only those with good education background with zeal after proper background check would be hired and then trained to fit the place and HR department will ensure they are safe and sound and their concerns are heard and resolved.Attached File Details
Video
https://www.youtube.com/watch?v=3LKD0HkM2tAComments
Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Type: Case Study
Stream: Management
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