Table of Contents
Background of the Organization.
International Human Resource Management Area.
Brief of Netherlands socio-economic culture.
International staffing and requirement.
International performance management.
Effective international performance management criterion.
International human resources management is known as a significant area and essential for organizations in management studies for many years. Companies are increasingly participating, pushing them to be competitive on a global market, in a globalization or internationalization cycle. Companies must build and evolve more agility than their rivals to retain competitiveness (Farndaleet al. 2017). In this context, effective management will give businesses the necessary capacity to thrive and distinguish themselves from their competitors. The HRM role enables employees to acquire the requisite skills, expertise and creativity to compete with international companies. Therefore, the area of HRM was the topic of many studies and a greater emphasis on international human resource management was observed in tandem with the increasingly globalized market climate.
This work shows that an efficient IHRM leads to firm productivity and is a vital element for survival when an organization competes in an international context. The problem, however, for multinational organizations is how to introduce and at the same time adapt management strategies from their headquarters. Cooke, Wood, Wang and Veen (2019) stated that the MNC, therefore, needs to develop HR-systems, which compare the needs of local reactivity and global integration, a performance equivalent. Accordingly, for strategic reasons, many multinationals have agreed to give their subsidiaries considerable flexibility in developing their own IT structures (Farndaleet al. 2017). Furthermore, some human resources strategies can be very context-specific, while others can be applied effectively in other situations, and accordingly. Besides, the objective is to explain the relative effect of subsidiary autonomy on various HR policies to determine how specific HR policies are relevant to be autonomous (Chung and Furusawa, 2016).
Bulla dairy is among the 100 per cent Australian family-owned businesses in the last 100 years. The company operates in the dairy business, which involves the manufacture of ice cream, cottage cheese, yogurt, sour cream, table cream and imaging cream, under various brands distributed on the world market. The Bulla Dairy Company was founded in 1910 and became collaboration between three Australian families in succession (Bulla.com.au 2020). In 1930 Bulla purchased Colac Ice Works and Regal Cream from two companies and stressed their global expansion of the industry. However, the company is more appropriate on the Australian market; they cannot prosper and grow their business on the world market. The company's corporate aim is to offer quality goods that also concern safety and well-being to its customers (Bulla.com.au 2020). Also, the company helps milk producers to provide the organization with better raw materials that eventually help consumers deliver a healthier product. In the marketplace and through the wholesaler and franchise companies, the company markets its goods as well as the dairy products. The firm's peculiar marketing approach is related to the 100% Australian feeling, which ensures that they are not able to extend their business worldwide. As a result, the organization's growth has slowed down given that the Australian market is already saturated, and multiple competitions in the limited region are present (Farndaleet al, 2017).
Cooke et al. (2019) stated that management of human resources is a management role that hires, motivates and keeps workers in the business. Personal resources management tackles workplace problems including recruiting, preparation, growth, pay, morale, communication and administration. As "Bulla Dairy Foods" is an Australian company which is expanding their business out of Australia and as the first international movement they choose Netherlands which is the healthiest country in the world for diet and one of the most densely populated countries in Europe.
The sixth-largest economy in the EU is the Netherlands. It is famous for its stability, strong economic growth, lower unemployment etc. It has strong petrochemical, food and electromechanical industries. It has a sophisticated free-market economy. High technological development has distinguished the Dutch industry. The Netherlands is regarded as one of Europe's most innovative economies (Chung and Furusawa 2016).
According to Cooke, Veen and Wood (2017), Netherlands has an equal society. Identity and honor are achieved by study and work, not by the family's dignity or old age. All people are equal and should be treated accordingly. In most countries, it might seem to give the customer a preferential position over the seller and thus a higher status in such a situation. But in the Netherlands this norm is not appropriate. Salespeople can disagree openly and criticize their customers. The Dutch people expect others to be open, honest and straightforward in return like them. They will criticize your work regardless of your status, superior or subordinate. Other sides just inform them if you identify any errors in their work. If you notify them of the error, they don't necessarily feel embarrassed. Beside it, you are also appreciated for giving them a chance to rectify themselves and thus to improve. Initially addressing people with their first name, going to walk into an office without knocking, talking about what people earn and asking private or intimate questions are viewed as unfriendly behaviours(Chung and Furusawa 2016).
The people of Netherlands are very timely. Timeliness in business is considered a virtue. Even five minutes of late arrival is viewed as inappropriate. However, good thing is that apologies are acknowledged for late arrival. Call ahead if you're unpredictably late. To keep the agenda fixed, someone will be given the president's role, and someone else can still be delegated to work as a timekeeper. All has to be done at certain times as a result. Perhaps it is this virtue that turned this little country into an economic world power.
Staffing involves hiring qualifying applicants for certain positions in the agency or service. Management aims to hire workers by assessing expertise, experience and then supplying them with unique work. It refers to more two factors which are recruiting and selection.
According to Butt and Katuse (2016), searching and finding prospective job applicants in appropriate numbers and quality was known as hiring such that the company can select the most adequate people to fulfill its needs. Selection is a knowledge gathering method for assessment purposes and a recommendation about who in particular will be working.
While "Bulla Dairy Foods" is establishing in Netherlands which is outside Australia and this is for the first time they are increasing business length, the company must have to keep some knowledge about the global staffing approach while recruiting staff for their company in Netherlands. The global approach to hiring recognizes potential management and hires within or outside the business. They have never considered their nationality. Its key benefits are having a wider pool of professional executives, and helping to grow the world's executive base (Cooke, Veenand Wood 2017).
There are four global approaches Bulla Dairy Foods needs to consider anyone while staffing in Netherlands,
Ethnocentric staffing: This includes hiring expatriates from the company's home country to the most important overseas branches. The desires of the home office and ensuring that the overseas offices reconcile themselves with the domicile are also viewed as best serving expatriates. Many expatriates are selected from the existing staff of the company and are directly moved to a foreign subsidiary.
Polycentric staffing: If a company follows the tactic of limiting recruiting to host country nationals (locals), it is referred to as a polycentric approach. This strategy is aimed at slowly lowering the costs of international purchases. Including, those organizations that initially follow the ethnocentric approach that eventually shift the polycentric approach. The primary aim of handing the management to the local people is to ensure that the company properly recognizes the local dynamics of the sector, the political situation, cultural and legal needs.
Geocentric staffing: When an organization adopts the policy of recruiting the best employees, regardless of their ethnicity, to the vacancies open, it is considered a geocentric solution. This methodology is embraced by businesses that are genuinely multinational because they have an internationally focused market model. Given that HR operations are limited by a variety of considerations, including political and ethnic influences and policy regulations, this strategy is difficult to follow. Though, the geocentric approach is implemented with great success by major multinational corporations (Sudaret al.2019).
Regiocentric staffing: The regiocentric strategy hires executives from various countries in the business regions. Although managers operate fairly separately in the field, they typically are not relocated to the head office of the organization. The regiocentric strategy can be tailored to the organization and its drug policies. If regional expertise is needed, the locals are recruited. If product awareness is important, regional parents who have ready access to corporate data sources may be added.
As a food company "Bulla Dairy Firm" should use a polycentric approach for staffing. The reason behind this decision is
The process followed in international staffing-
Expatriate: An expatriate is an adult living, sometimes temporarily and for work purposes, in a country other than their country of nationality (Horwitz 2017). An expatriate may also be a person who has given up citizenship to become a citizen of another in his home country. The management bodies who will go to Netherlands from Australia are counted as expatriates for Bulla Dairy Foods. They support firms in other countries, reach markets internationally and transfer expertise and information to corporate associates of their companies. This expertise allows companies to improve their management capabilities and to compete in a competitive market.
To manage these challenges the expatriate should be-
International training and development: According to Rodriguez, Johnstone and Procter (2017), International training and growth are training and employee development which helps a multinational company to create its human resources (human capital, skills and intellectual property) (or any partnership in that field), etc. MNEs have an important role to play in international recruitment and management as it enhances human resources and motivates both expatriates and HCNs. This in turn affects the success of the foreign company.
Pre-departure training: According to Brewster, Boselie and Purpura (2018), pre-departure training is a specific term for a curriculum that will educate expatriates early about what to expect to live and work abroad. Good preparation helps staff who travel overseas to personalize the experience and to prepare for difficulties which will be faced by them and their families. In the case of Bulla Dairy Food Company, pre-departure training for the Australian management team is important for getting addressed about Netherlands in advance so that they can sustain in there easily due to business or job purposes. It may help expatriate to-
Development of International assignee: An international assignment is a job for an employee overseas by a corporation. Mainly, multinational (MNC) firms are involved in overseas assignments. There was a misunderstanding. Foreign projects are part of the international human resources administration preparation and development programs (Van Hartenet al., 2017). A successful international challenge reveals and strengthens cross-cultural experience and skills, encourages them to develop new leadership strengths and introduces them to innovations, which will make them better in the future. Some effective ways of developing international assignee are-
Choosing a compelling purpose about the enterprise which means what Bulla Dairy Foods mainly want to be as dairy firm in Netherlands
Repatriation: Repatriation is a method to return after finishing the mission or other problems from an overseas assignment to a home country. Repatriation is the last step in the expatriation process which includes the transition which reintroduction in their country of origin of foreign management and their relatives. Global activities affect the work of workers. To repatriate employees is intended to reintegrate into a home structure. The shock of a counter-cultural situation is very real, and the longer the expatriate is outside, the stronger. As it is the last part of international staffing, so for success in repatriating the organization must follow the previous two steps accurately (Horaket al., 2019).
In the case of Bulla Dairy Foods, if the person sent to Netherlands is enough capable and their activities get reflects the goals and objective of the firm, the total process of international staffing get successfully finished.
Bader and Reade (2018) stated that International performance management involves assessing a person who works temporarily in a foreign subsidiary to transfer expertise or improve global leadership skills. External success monitoring should better adhere to the strategic goals of the organization. Globally, management of performance can be defined as a mechanism that makes it possible for a foreign business or corporation (MNE) to continuously assess and enhance results about pre-set goals and targets. It helps to
For the Bulla Dairy Foods Company followings indicators effect on the employees in evaluating the performance of the firm in Netherlands-
Host environment: As a host country, Australia is one of the most developed countries in the world. The dairy industry in Australia is also much progressed. The employees that work on dairy have a well structured and well-managed environment in the host country which provides them proper knowledge about farming (Millar, Chen and Waller 2017).
Cultural adjustment:As a country Netherlands is not big but as developed as Australia. In terms of assessing people and culture, it is very clean and generous people live in that country. Though people are busy there but they are very much friendly and co-operative. On the other hand, the environment is very much suitable for the dairy business. The countries people use a lot of dairy products in their regular life. As a developed country establishing business and get adopting with the culture will be easy for the Australian staffs that move to Netherlands for working purpose.
Headquarter support: As the Bulla Dairy Food stepping out of the country first time, so the headquarter will support the team by heart and soul to establish the brand name internationally because if they they get success over Netherlands, there will be a huge market over 17 million people for the firm.
Task: By properly controlling and dividing the objectives into some small tasks it will be easy for employees to get success in attaining vision easily.
Compensation package: Motivation is a must for employees like fuel for cars. By getting the appropriate reward on following and maintaining regular tasks, it increases confidence and satisfaction level of the employee both mentally and physically. It results in better performance of management as well as overall firm (Millar, Chen and Waller 2017).
HRM issues faced in performance management by Bulla Dairy Foods
Relevance: Relevance means that the standards for success are related to the goal to be calculated. If the efficiency and experience of staffs meets the goal of the firm then it will be called relevant
Acceptability: The qualification of the employee must meet the requirement of the post for being acceptable which increase performance of the firm.
Sensitivity: A performance evaluation is successful because it can discriminate between achievement and loss or productive and inefficient workers. If wheat cannot be distinguished from chaff by the assessment method, it would do no good. A non-sensitive method does not score higher high performers than low performers.
Practicality: Practicality also ensures that an appraisal method will be in a position, or may of no use to staff or to the organization, to quantify something that is important to people and to their objectives.
In today's competitive marketplace, the food industry is faced with a lot of tough competition, talent cruising, and skill-shortage, especially in developing economies such as Netherlands. All of these have led Bulla Dairy to the feeling that its internal customer is even more important to external clients and thus Bulla Dairy Food tries to formulate creative HR practices that will allow Bulla Dairy to retain talent and provide them with a comfortable atmosphere. The HR management of Bulla Dairy Foods is facing four major challenges. They prepare, acquire the right people, conserve/develop people, and handle the separation and exit of people. It must not be emphasized that in this challenging and competitive environment, it is the managers, managers and customers that make an organization competitive. The employees in a company (human resources) would be rewarded with improved results, higher efficiency and increased productivity when looked after and provided with adequate incentive. The aim of the present study, therefore, was to understand some creative HRM practices deriving from strategic interventions that were technically rational in response to a dynamic, but opportunities-rich hyper-competitive environment that was opened up by economic reforms in the food industry of Netherlands Europe. Such creative HRM activities are not a random set but are activities that the HR department of these Bulla dairy foods will find best and performance excellence.
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