NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
HR
Submission Date & Time: 2021-11-25 12:35:57
Event Name: NMO S4 Sprint One - IIM Visakhapatnam
Solution Submitted By: Beena Mardi
Assignment Taken
Human ResourceCase Understanding
Mr. Ramalingam Venkatesh started the venture in the form of a fast-food restaurant in South Bombay in 1965. Due to political mishappenings leading to an emergency imposed in the country in 1975, food items were to be sold at bare minimum prices. To survive in the market, Ramalingam Foods started selling Idli-Dosa batters and South Indian Chutney packets for customers to take home and make their own, which became a hit and they decided to make this their main business. Later they introduced different variants of Instant Mix in a powdered form to fulfil the demand of varied customers. The product portfolio included Instant Dosa Mix, Instant Idli Mix, Instant Gulab Jamun Mix, Instant Laddu Mix, instant coffee powder, Instant Dhokla mix, and similar products. It allowed the venture to operate at a meager cost, and they were able to make considerable profits. Currently Ramalingam food's operating revenues INR 152 crore for the financial year ending on 31 March, 2019. It's EBITDA has increased by 3.16 % over the previous year. At the same time, it's book net worth has increased by 20 % and recently there has been a demand for their products in the foreign market, which is being fulfilled by Indians reselling the products abroad after buying it from the domestic market. Hence to capitalize on this situation, the venture is thinking of starting its business in the foreign market. As Mr. Vijay(Current owner) does not have any prior experience in international business, our consultancy would be guiding him throughout the process of business expansion. We have given a limited budget of INR 50 Crore for FY 2019-20 to work with, so we would be going ahead with a single foreign region.BCS Solution Summary
Since our company will enter a new market of the different country (Singapore and Malaysia) whose culture and working environment is totally different from our host country and according to company research and few experiments, we found out that in order to attract, motivate and retain employees, Malaysian firms provided monetary rewards to their employees while few offered non-monetary rewards to their employees. Linking performance and reward is the best and direct way to motivate and retain employees in Malaysia. Hiring in Malaysia could be expensive as there are unavoidable cost and employer has to bear and since our company is hiring in foreign country additional expenses involved in expanding to the country. Some of the cost would include: • Company registration • Legal assistance • Recruitment fees • Translator • Background checks In Singapore companies, talent recruitment, staff loyalty and performance motivation have always been vital. Employee share incentive plans serve as important tools for industrial engineering businesses to achieve these objectives, by providing employees with long-term rewards linked to the businesses’ success. We will adopt the recruitment process followed by every other Singaporean company based on a combination of skills, competencies, experience, and motivation, which are as follows: • Identify aspirants that would best fit the role • If candidate profile match with company requirement one of the company member will contact him and if necessary, initiate with telephone interview will be arranged to know more about the candidate • First-round interview • Assessments • Second -round InterviewSolution
Since our company will enter a new market of different country Singapore and Malaysia whose culture and working environment is totally different from our host country and according to company research and few experiments and found out that respondents to attract, motivate and retain employees. Malaysian firms provided monetary rewards to their employees while few offered non-monetary rewards to their employees. Linking performance and reward is the best and direct way to motivate and retain employees in Malaysian. The result indicates that most of the Malaysian companies are influencing employees’ behaviours by linking reward system and company’s objectives. Reward system is the main tool to drive employees’ performance. Also, A hiring incentive program, the Penaja Kerjaya Programme took effect 1 July 2020, and employers can submit applications to the Social Security Organization. The program offers between MYR600 and MYR1,000 per employee for up to six months to employers who hire Malaysians. Malaysia has Southeast Asia's highest minimum wage, yet it is still low in comparison to many other nations. The Ministry of Human Resources published a gazette in February 2020 mandating firms to pay their employees at least RM1,200 per month, or RM5.77 per hour. International firms should also look at normal Malaysian salary rates for positions in their field, as well as the cost of living in the area they're recruiting in. As a result, you should specify whether the given compensation includes the 13-month incentive in offer letters and contracts.
Many Malaysian employees are accustomed to earning incentives depending on their performance. If you want to give these bonuses, you should include information about them in employee contracts. In Malaysia, a 13th-month bonus, which is the equivalent of one month's salary given at the end of the year, is not required by law, as it is in some other countries, but it is widespread.
In Singapore companies, talent recruitment, staff loyalty and performance motivation have always been vital. Employee share incentive plans serve as important tools for industrial engineering businesses to achieve these objectives, by providing employees with long-term rewards linked to the businesses’ success.
There are three employee share incentive plans commonly put in place by companies in Singapore, namely:
- Employee Share Option Plan
- Employee Share Awards Plan, and
- Phantom Share Option Plan
Implementing these plans would lead:
- Increase productivity.
- Retain employees.
- Attract and reward high achievers.
- Thank employees for reaching and exceeding goals.
- Encourage teamwork
Malaysia is a multicultural country with several ethnic groups, the most notable of which being Malay, Indian, and Chinese. It's no surprise, therefore, that Malaysia is a linguistic melting pot. Malaysian Malay, sometimes known as Malay, is the country's official language. English is a widely used second language, mainly in educational contexts. Malaysia has a diversified population, and Malaysians, in comparison to other Southeast Asian countries, are unusually well educated. Malaysia has a literacy rate of 95%, with 538,555 students enrolled in Malaysia's public institutions in 2017. And the people that work there have a wide range of abilities. In Malaysia, a normal workweek consists of five eight-hour days, Monday through Friday, from 9 a.m. to 5 p.m. Work hours can be increased to a maximum of 48 hours per week, but overtime compensation, which is 1.5 times the regular rate of pay, is required. After six days of labour, employees are entitled to a day off. Every year, Malaysian employees are entitled to paid vacation time. Employees should receive at least eight days of yearly leave before their two-year anniversary with a firm. That minimum climbs to 12 days after two years, and to 16 days after five years. All Malaysian employees are entitled to paid days off on public holidays. In some cases, employees may be entitled to paid sick leave.
Hiring in Malaysia could be expensive as there are unavoidable cost and employer has to bear and since our company is hiring in foreign country additional expenses involved in expanding to the country. Some of the cost would include:
- Company registration
- Legal assistance
- Recruitment fees
- Translator
- Background checks
PROCESS:
- Draft and submit incorporation documents
- Register an office location
- Open a commercial bank account in Malaysia
- Register for payroll tax and for Goods and Service Tax (GST)
- Enroll with the Malaysian social security office (SOCSO)
Problems faced while recruiting in Malaysia
- Failure to attract talented candidates
·Lack of understanding between recruiters and hiring manager
·Keeping Millennials in the workforce for a longer period of time
·Unable to use data effectively
·Inefficiency during the recruitment process
·Failure to provide great candidate experience
We will adopt the recruitment process followed by every other Singaporean company based on a combination of skills, competencies, experience, and motivation, which are as follows:
- Identify aspirants that would best fit the role
- If candidate profile match with company requirement one of company member will contact him and if necessary, initiate with telephone interview will be arranged to know more about the candidate
- First round interview
- Assessments
- Second -round Interview
Conclusion
We will adopt the recruitment process followed by every other Singaporean company based on a combination of skills, competencies, experience, and motivation, which are as follows: • Identify aspirants that would best fit the role • If candidate profile match with company requirement one of company member will contact him and if necessary, initiate with telephone interview will be arranged to know more about the candidate • First round interview • Assessments • Second -round InterviewAttached File Details
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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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