Assignment Taken

Develop a Hiring & Incentive strategy for Human resources working on international expansion to enable a speedy growth.

Case Understanding

1. Need for understanding of Organisational Culture of the foreign nation 2. Change management of our Organisational Policy 3. Demand for manpower to set up a manufacturing plant overseas and other activity like marketing, sales and distribution 4. Managing the divergence of employees’ culture among foreign nations under one organisation. 5. Have to understand and abide by the foreign national’s HR policies

BCS Solution Summary

Global Business Consultancy Ltd. (GBC) is a pioneer in consultancy services, helping brands grow. It offers its services to various segments such as: 1. Start-Ups/MSME/MNCs 2. International/National Market Expansion 3. Product Portfolio Enhancement 4. Legal Consultancy 5. Project based Research & Analysis GBC has been helping companies for past 38 years and has a trusted client base including RBC Foods Ltd., Gymnasium Footwears Ltd., Sleepmore Polymers, Swastik Foundation to name a few. Global Business Consultancy was approached for international expansion by Ramalingam Foods (Tagline: Making Homemade Chefs Since 1965) which has a ready to cook product portfolio, predominantly South Indian food mix including dosa-idli instant mix powder, dhokla , gulab jamoon mix and filter coffee. GBC has decided the company to expand in Malaysia, Singapore and Indonesia of South-East Asia where there is huge south Indian population. The company would make greenfield expansion in Malaysia followed by export to Singapore (by road) and Indonesia (by waterways) from there. GBC has advised Ramalingam Foods to launch with current products at these three countries in this year with planned product portfolio enhancement over next two years. Ramalingam Foods will focus on R&D for product innovation (both authentic Indian and Indian themed foreign dish), marketing for extending reach cum brand building, world-class IT infrastructure for coping up with digital disruption, employee friendly productive HR policy. The regions for expansion have been chosen with a view to venture into new geographical areas as by means it already has a presence in Middle east, Southeast Asian countries and England. As we are consulting Ramalingam foods to export for the first six months, hiring of gig workers on an hourly rate on requirement basis can be done. Until the manufacturing unit will be set-up in Malaysia as per plan, recruitment of employees can be outsourced as it will reduce large operating cost. For a manufacturing unit, the estimated number of employees is given in the table for operations at all the three countries. One of the important things for global expansion and sustainability of a company would be proper training to see directed and fast growth for the company. Incentives are not only in terms of monetary basis, so the incentives and benefits have been planned for all low level, middle level and high level management reasonably.

Solution

As Ramalingam foods has a variety of food mixes ranging from north Indian mixes to south Indian mixes, foreign countries with densely populated Indian will be the right choice for international business expansion. It is evident that Ramalingam foods’ products are already being bought and sold in Southeast Asia region, Middle East and England. We at Global Business Consultancy after intense market research suggest entering Malaysian market primarily. Then, the company can expand its operations to Singapore and Indonesia which are close to Malaysia by distance.

Hiring Plan for April 2019 - September 2019

During the plant set up in Malaysia, our products in large quantities will be exported via Sea route to Malaysia. A wide range of products will  be exported to Malaysia, Singapore and Indonesia. Products can be sold on the e-commerce sites yet hiring of workers for manual labour work for unpacking the good from the vehicle at the inventory stores is necessary.

Whom to hire?

Gig Workers can be hired on a hourly rate basis as and when required. Gig workers are independent contractors, online platform workers, contract firm workers, on-call worker and temporary workers. Gig workers enter into formal agreements with on-demand companies to provide services to the company's clients.

Ramalingam Foods can post job availability on top websites like Behance.net, Fiverr, FlexJobs.com, and Freelancer.com and gig workers will be available.

Why Gig workers?

• Available on call anytime
• Remuneration based on work done
• Cost effective to the company
• No benefit liabilities to the company
• Free of agreements

Working Plan:

1. After exported goods reach the respective port countries, logistics services will be hired for transportation to the inventory stores.
2. To do manual work at the store, gig workers will be hired.

Hiring Plan for October 2019 – November 2020

The manpower for the set up can be outsourced from top companies for man power like Randstad and Contract First. The outsourcing reduces and control operating cost which is one of the largest expenditure of any company. The number of employees required for manufacturing is given below. The employees are split department wise  

Plant Capacity –

Operations Department

Chief Operations Officer(1)- Plant Head cum Malaysia Head

Machine operators (8)

Mechanical Engineers(1)

Instrumentation Engineer (1)

Electrical Engineer (1)

Food Tech Engineer (1)

Facilitator(1)

Project Manager(1)

Project Engineer(2)

Marketing Department

Executives(2)

Managers (1)

Sales person(4)

 

 

Human Capital Department

Executive officer(1)

Managers(1)

LR,IR personnel(2)

Research & Development Department

Scientists(1)

Executive Officer (1)

Lab assistant (1)

 

Quality Control and Assurance Department

Manager (1)

Executive officers (2)

Information Technology Department

Manager (1)

IT Engineers(2)

Data Analyst(1)

 

 

Finance Department

Manager(1)

Executive officer(1)

Accountants(1)

Office Maintenance Team

Security(4)

Office boy(2)

 

 

 

Fire and Safety Department

Manager (1)

Officer(1)

Firemen(4)

Store and Procurement

Manager-1

Store Assistant-2

 

Total number of Departments = 10

Total number of Employees = 55

 

 

Departments	Number of Employees
Operations	17
Marketing	7
Finance	3
Human Capital	4
QC/QA	3
Office maintenance	6
Research & Development	3
IT	4
Fire and Safety	6
Store and Procurement	6

Remuneration (monthly) for the employees:-

• For all department heads - 11000 MYR
• COO - 12000 MYR
• Manager, Data Analyst - 7000 MYR
• For all executives officers – 5000 MYR
• For Accountants –  4500 MYR
• Machine Operator - 2500 MYR
• For Mechanical, Instrumentation, Electrical, Food Technology engineer -5000 MYR
• IT Engineers - 5000 MYR
• Sales persons – 3500 MYR
• Firemen, Lab assistant, Store assistant - 2500 MYR
• For Office boy, Security – 1300 MYR

 

Hiring plan for December 2019- March 2020

• Hiring of four employees - 1 Project manager,  1 Project engineer, 2 Legal relations manager in Singapore and Indonesia to take care of daily operations of Ramalingam Foods.

Incentive Strategy for speedy growth of Organisation

Why Incentives?

• Highly motivate employees for better productive work
• Reduce employee turnover rate
• Show more loyalty to the company
• More committed employees

Incentive Plan:

1. All employees will be paid with the basic pay structure; incentives are given above the basic pay.
2. Above a certain mandatory tasks to be performed on the working days, work target will be set for every job
3. The work will be divided into different categories and every work will be certain weightage percentage.
4. An employee will be able to draw proportionate amount of monetary incentive based on the percentage of work completed with respect to the points earned over the mandatory work per day.

Incentive Table:

Works	Target	Weightage	Actual	Points Earned
Work 1	100	40	50	20
Work 2	100	10	100	10
Work 3	100	30	100	30
Work 4	100	20	75	15
Total		100		75

• There can be n number of work for all departments
• Every department will have work targets specific to their domain
• Taking the example in the table, if 75% of the work is done then the employees will be awarded with 75% of the allotted amount for incentive.
• Incentives for the low level workers would be giving away one month of grocery worth Rs.2000 with the basic pay
• All low level, middle level and high level management will have

• Medical cover of 1 lakh
• Life Insurance cover of 1 lakh
• Accident cover of 1 lakh
• Education scholarship to one child if retained for min 5 years
• Additional week off with every one year completion
• Gratuity after completion of 5 years

Training Plan

Why training?

Train your employees enough that your competitors will be willing to pay them double the amount you pay. Only eligible and efficient candidates will be hired for work yet training is essential in an organisation for better productivity and to eliminate chaos during work. That too in a MNC like Ramalingam Foods now, to stick to the organisational policy and procedure and to bring in order in work training sees it’s at most importance.  Training plan for manufacturing ready-to-cook food industry is below:-

• Skill-gap assessment will be done once in a semester
• If the employees are seen under skilled in any department, they will be immediately sent for specific training programs. Few of them are stated below
• Operations  – 6 sigma certification
• Marketing – Digital marketing, Customer Relationship Management, Branding
• Human Capital – Negotiating skills, SHRM, Soft skills…etc.
• A minimum of 10 candidates will be sent for training programs at a time

Essential Training Programs for International Business expansion

• Prosci Change management program
• Export-Import program

Management principles used:

1. Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient.

2. Unity of Command – Employees should have only one direct supervisor.

3. Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.

4. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.

5. Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.

6. Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.

References:

1. https://loanstreet.com.my/learning-centre/gig-economy-malaysia-empowerment-or-exploitation
2. https://www.randstad.com.my/workforce-insights/talent-management/what-exactly-is-the-gig-economy/
3. http://entrepreneurinsight.com.my/gig-economy-a-new-job-trend-in-malaysia/
4. https://says.com/my/news/4-in-10-malaysians-plan-to-join-gig-economy
5. https://www.contractfirst.com.my/?gclid=CjwKCAjw1v_0BRAkEiwALFkj5iEyz0rvSGzyzuUO8AgLu9h3AyxfyFZtWpLLZghfcg4DO4_207ymzBoCAjQQAvD_BwE

 

 

 

 

Conclusion

Human must not be seen as a resource rather a Value addition in terms or Intellectual property. Hence, HR is specified as Human Capital in the Case Solution. The HC department should look into the problems faced by the employees to reduce their pain points. If all the steps given in this case solution is implemented then according to the projected sales, we will succeed in the business. The management should see to that all the departments are working in coordination with each other at high efficiency and productivity achieving the goals of Global Business Consultancy.

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