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FINAL | BUSINESS CASE - BCS 06

HR Manager Submission BCS 06

NMO 2020

Strategic Expansion Solutions of Ramalingam Foods â€“Report by NEXUS Solutions

Submission Date & Time : 2020-04-25 13:24:51

Submitted By: AISHIK BANERJEE - HR Manager From Team Sky

Assignment Taken

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

Case Understanding

ABOUT THE COMPANY: Ramalingam Foods is a fast food restaurant, It was established by Mr. Ramalingam Venkatesh in south Bombay in year 1965, The establishment was famous for their authentic south Indian freshly cooked food and filter coffee.The company now is looking for international expanasion. PROBLEMS RELATED TO HUMAN RESOURCE FACED BY THE COMPANY: Problem 1)There may be lack of knowledge of the foods being served on the part of employees, who are from different country on new international location the company wants to expand to. Problem 2)In a new international location ,employees may find it difficult to understand the culture and taste of the people there, which will affect business of the company. Problem 3)Hiring new employees for a new international location is challenging and the company will find it difficult due to factors such as low or inadequate capital, difference in wage/salary structure. Problem 4)In a new international location the company may find it difficult to achieve an optimal mix of employees of different departments , which will affects coordination among different departments such as Finance, Marketing, Human Resource and IT. Etc.

BCS Solution Summary

SOLUTIONS TO THE PROBLEMS FACED BY THE COMPANY: Solution to problem 1)The employees need to given training and knowledge regarding the food products or food items that the organisation is going to sell , so that employees can explain about their products to customers. Solution to problem 2)The newly recruited employees of the new foreign location should be instructed and and made motivated to understand about the taste and preferences of the local population of the country. The employees should consult the marketing department in understanding the taste and preferences of the local department. Also The company should look to hire more local people of the new country. Solution to problem 3)The management of Ramalingam Foods should in liaison with both HR department and the Government of the country ,which it want to expand should understand and gain knowledge about the salary structure there, and also coordinate with the finance department regarding the cost of Hiring and Incentive strategy to be undertaken. Solution to problem 4)The HR department and the Management of Ramalingam Foods, should look at otherâ€™s companyâ€™s practices(belonging to the same industry) of the new location, where it will set up business and try to implement the same , this way the company will achieve in having the desired optimal mix of employees of every department, which is very important for efficient running of the business.

Solution

SOLUTION(Management principles used to derive the solutions):

A)Related to solution of problem1) ) Development of Each and Every Person to His / Her Greatest Efficiency and Prosperity: According to this principle, the efficiency of each and every person should be taken care of right from his selection. A proper arrangement of everybody’s training should be made , so that the employees of Ramalingam Foods understand about the food products and can explain about their products to customers.

B)Related to Solution of problem 2) Initiative:This management principle talks about taking and forward looking approach in solving an problem. Ramalingam Foods management and the employees needs to take initiative to understand about the local taste and preferences of the customers.

C)Related to Solution of problem 3) Coordination:As per this principle there should proper coordination not only among the various departments of Ramalingam Foods , but also with local authorities and Government of the concerned country in which the company will set up business.

D)Related to Solution of problem 4 ) Division of Work: This management principle calls upon for division of work among employees/owners. Ramalingam Foods, to achieve an optimal mix of employees across departments Such as Finance , HR, Marketing , should look upon this management principle achieve the same.

Hiring & Incentive strategy of Ramalingam Foods for Human resources working on international expansion in Singapore, Myanmar, Indonesia, Thailand and Malaysia:

A)Hiring strategy of Ramalingam Foods:

Ramalingam Foods should implement the following strategies while setting up and expanding it’s business in Singapore, Myanmar, Indonesia, Thailand and Malaysia:

HIRING STARATEGIES IMPLEMENTATION

1)Selecting the Right Sourcing Strategy & Sourcing channels:

Effective employer-branding is always a great way to attract talent. As a global company, Ramalingam Foods should aim to maintain global attractiveness and competitiveness for potential candidates. As for finding good talent, different countries have different success rates for the same sourcing channel. A successful sourcing strategy should account for differences in a country’s culture. Ramalingam Foods should make use online job portals which is an effective means of sourcing right talents as per as international market is concerned.

2)Conducting Interviews in an proper manner by asking right interview questions as per different countries:

It is critical for Ramalingam Foods to have a well-researched understanding of the different educational qualification levels as well as the varying quality of schools in the region from where you are considering recruiting. The name of a qualification/course covering a similar syllabus or curriculum will be different in different countries so it is critical that Ramalingam Foods are evaluating candidates appropriately and fairly, so that it must do some homework beforehand. For example , education system may be different in Malaysia and Singapore. There are also interviewing strategies and techniques that differ from region to region, resulting in a fairly comprehensive list of dos and don’ts in interview questions. For example, in some countries you can ask the candidates about their current & past salaries, while there are laws against doing so in many others. So Ramalingam Foods also need to keep this in mind.

3)Understanding the Cultural diffrences:

Ramalingam Foods , while hiring candidates for its foreign business should keep in mind the cultural differences that is present in different countries. Understanding cultural differences and how they play out in the interview process is also critical to success when trying to recruit in a new country.

For example, if candidates are expected to trumpet their accomplishments aggressively in your home country, Ramalingam Foods will find itself puzzled if the new country’s recruitment targets are quieter, more humble and self-effacing. Doing some research on the norms and customs that the organization are likely to encounter will avoid confusion and missed opportunities later on down the road.

4)Understanding the Compensation diffrences:

Ramalingam Foods should keep in mind before hiring that Different countries have different currencies and attitudes towards pay. Ramalingam Foods should be aware of the currency of the country for which the recruitment is being done and also how that is related to currency in which organization maintains its budget and expenses. This helps in understanding a candidate’s salary expectations with regard to the budget for the position and also helps in effective negotiation.Moreover, the organisation should know the compensation range of the different job types in the new country. There could a big difference in the compensation ranges of the same job in different countries.

5)Keeping in compliance:

Ramalingam Foods Management must comply with local rules and regulation regarding the hiring process in the foreign country because industrial and labour relations laws vary from country to country. Different countries have different statutory requirements related to employment categories such as minimum wage, social security, income tax, medical benefits, leave policy, working hours, offer letter, appointment letter, notice periods, etc, so the company must adhere to the rules and regulations.

6)Polycentric approach:

Ramalingam Foods should adopt polycentric approach while hiring for it’s host country. This way by hiring local people for it’s different regions of business, will help Ramalingam Foods to understand and follow local culture, political scenario and rules, regulations better.

Projected Number of employees to be Hired across different departments in all the five countries(Singapore, Myanmar, Indonesia, Thailand, Malaysia) for the upcoming financial year 2019-2020:

DEPARTMENTS COUNTRIES TOTAL NO OF EMPLOYEES

FINANCE	SINGAPORE, MYANMAR, INDONESIA, THAILAND & MALAYSIA	5(1 Per country)
MARKETING	SINGAPORE, MYANMAR, INDONESIA, THAILAND & MALAYSIA	5(1Per country)
HR	SINGAPORE, MYANMAR, INDONESIA, THAILAND & MALAYSIA	5(1Per country)
IT	SINGAPORE, MYANMAR, INDONESIA, THAILAND & MALAYSIA	5(1Per country)
OTHERS	SINGAPORE, MYANMAR, INDONESIA, THAILAND & MALAYSIA	5(1Per country)
CORPORATE HEAD(TO OVERSEE THE OPERATIONS OF ALL THE FIVE COUNTRIES)	SINGAPORE, MYANMAR, INDONESIA, THAILAND & MALAYSIA	1

B)Incentive strategy of Ramalingam Foods:

Ramalingam Foods In order to maximise performance of it’s employees should look to provide both monetary and non-monetary incentives provided the employees achieve the following objectives successfully-

1)Good Customer service and focusing on quality aspect of its food products and suggesting any improvements.

2) Collaborating successfully with different restaurant chains , to increase distribution of its food products.

3) Efficiency shown in terms of higher sales of its food products.

4) Realising short-term objectives as set by the management of Ramalingam Foods

5)Improving or bettering past performance in terms of customer services , sales and profitability of Ramalingam Foods.

Monetary Incentives in Ramalingam Foods may include- 1) Bonuses for surpassing the objectives as set by the management,2) Commission for achieving the sales target,3) Cash rewards

Non-Monetary Incentives in Ramalingam Foods may include- 1)Formal recognition/ awards for its high performing employees,2) Extra Holidays for achieving certain sales targets of its products as set by the management,3) Gifts, 4) Company cars for high ranked employees, who will be performing exceptionally well.

Projected Cost to implement Hiring and Incentive Strategies across departments in all the five countries(Singapore, Myanmar, Indonesia, Thailand, Malaysia) for the upcoming financial year 2019-2020:

Q1 Q2 Q3 Q4 TOTAL

FINANCE	1	1	2	2	6
MARKETING	2	3	1	2	8
HR	1	1	2	1	5
IT	2	1	2	2	7
OTHERS	1	1	1	1	4

*Figures(In above table) are given in Rs(in lakhs) (*Hiring cost is estimated by taking into account that Ramalingam Foods will follow polycentric approach while Hiring.)

Conclusion

Ramalingam Foods Should look to go with hiring strategy, plans as developed by itâ€™s business consultant. Also incentives strategy for itâ€™s employees is also need to be well taken care off , the management can go with itâ€™s business consultant recommendations in this regard. References: https://www.toolshero.com/management/14-principles-of-management/ https://www.business.com/articles/management-theory-of-mary-parker-follett/ https://www.globalpeoplestrategist.com/5-strategies-for-successful-international-hiring/ https://www.hcamag.com/au/news/general/effective-incentive-strategies-for-every-organisational-goal/141607 http://www.yourarticlelibrary.com/management/4-important-principles-of-scientific-management/885