Impact of HRM Practices on Project Success

This assignment examines the relationship between human resource management (HRM) practices and project success, with a specific focus on the moderating role of Islamic Work Ethics within Pakistani project-based organizations. It draws upon research by Khan and Rasheed (2015) to analyze how various HRM practices contribute to successful project outcomes in this unique context.

Running head: EVALUATION OF HRM STRATEGIES
EVALUATION OF HRM STRATEGIES
Name of the Student
Name of the University
Author Note

1EVALUATION OF HRM STRATEGIES
Executive Summary
The aim of this report is to discuss about the initiation of the effective strategy of human
resource management by KIA Motors in their operation in India. The business environment
of India is being discussed this report along with determining the challenges and
opportunities to be faced by KIA motors in operating in India. In addition, various
approaches related to human resource management are also been discussed in this report.
Various theories of human resource management are being discussed, which will help KIA
motors to effectively manage their employees. This report concludes with providing various
recommendations according to the issues to be faced by them in the Indian market.

2EVALUATION OF HRM STRATEGIES
Table of Contents
Introduction....................................................................................................................3
Determination of the external environment of India......................................................4
Employee Involvement..................................................................................................7
Importance of Human resource management in employee engagement...................7
Reward management......................................................................................................7
Initiation of the reward system...................................................................................7
Initiation of Transformational leadership...................................................................8
Evaluating the effectiveness of HRM strategies............................................................8
Analysis of the differences between global HRM strategies.........................................9
Training and Development...........................................................................................11
Relationship between organizational performance and HRM.................................11
Analysis of the national, cultural and organizational issues........................................13
National issues related to HRM...............................................................................13
Cultural factors affecting HRM strategies and training expatriate..........................13
Organizational factors that affect HRM...................................................................14
Performance management........................................................................................14
Performance appraisal methods...............................................................................15
Management skills required in international business.................................................15
Conclusion....................................................................................................................16
Recommendation..........................................................................................................17
References....................................................................................................................18

3EVALUATION OF HRM STRATEGIES
Introduction
The current business scenario is much more competitive in nature than it was a decade
ago. This is due to the reason that, more business organizations are entering in a particular
business sector, which is further increasing the competition and reducing the profitability.
Thus, majority of the contemporary business organizations are opting for globalization in
order to enter in new foreign countries and to enhance their market share and market presence
(Cavusgil et al., 2014). However, initiation of the globalization requires updated and
customized approach of the human resource management. This is due to the reason that, the
business environment in the home and host country will be different and thus, organizations
will require customized approach of human resource management according to the criterion
of the host country (Beardwell and Thomson 2014). The more effective will be the policies of
the human resource management; the efficient will be the business operation in the host
country.
KIA motors are one of the leading automobile organizations in the world based in
South Korea. They are having their brand presence in different countries around the world
with having their product portfolio ranging from SUVs, hatchbacks to Gran Tourismo and
electric vehicles(Kia.com 2018). However, being one of the largest automobile markets in the
world, India is not still having the access to the vehicles of KIA. In the recent time, KIA
motors have initiated the process to enter in the Indian market by 2019. However, they will
require effective policies and strategies of human resource management in order to suit the
Indian environment.
This report will discuss about the probable approach of human resource management
to be adopted by KIA Motors in doing business in India. Moreover, the business environment
of India as the target country will also be analyzed in this report. In accordance to the Indian

4EVALUATION OF HRM STRATEGIES
business environment, strategies of human resource management will be discussed in this
report.
Determination of the external environment of India
Political  India is having the largest democracy in the world and
having stable political scenario.
 Taxation system is also well developed, which will have
favorable impact on the business of KIA motors.
 However, the higher rate of tax will cause extra cost burden
on the organization (Bose and Jalal 2017).
 In the recent times, government of India is promoting
“Make in India” initiatives to attract foreign investments
(Goswami and Thakur 2016).
 Business friendly initiatives are being promoted by the
government by offering special economic zones and tax
incentives.
Economical  Since 1991, India is one of the most liberal and business
friendly countries.
 In the case of the automobile sector, India is having the
opportunity of 100 percent foreign direct investment.
 India is being considered as one of leading developing
countries in the world with having the highest GDP growth
rate in the world (Malhotra 2014). Thus, KIA Motors will
have huge business opportunity in India.
 However, major population of India is still under the
poverty line and thus, the target market will not equal to the

5EVALUATION OF HRM STRATEGIES
total population.
Social  India is the second largest populous country in the world.
Thus, the market opportunity is huge in India.
 Middle class society is rapidly increasing in India and thus,
it will be huge opportunity for KIA motors to sell their
affordable models in India (Binswanger-Mkhize 2013).
 India is the largest country in terms of youngest population.
Thus, maximum population is in the verge of starting their
professional career. This is an opportunity for KIA Motors
to target the young professionals.
 However, Indian market is already having huge number of
competitors in the automobile sector. Thus, it will be a
challenge for KIA Motors to gain market share by
competing with the established players.
Technological  In the recent time, India is witnessing huge growth in
technological sector due to increase in foreign players and
investments.
 India is having one of the largest IT sectors in the world.
Thus, it will be easy for business organizations to have the
access to the latest IT solutions (Jha 2013).
 India is having low cost access of the updated technologies.
Thus, the cost incurred in technology will be less for KIA
Motors.
 However, KIA Motors will require more updated
technologies to develop cheaper and fuel efficient small

6EVALUATION OF HRM STRATEGIES
cars.
Legal  India is having different legal complexities for the business
organizations.
 KIA Motors will have to adhere to the employee welfare
related legal regulations in India (Meiners, Ringleb and
Edwards 2014).
 Organizations will have to comply with the diversity
related regulations due to the reason that, India is having
diversified population from different cultures and ethnicity.
 There are other regulations such as minimum wage and
retirement benefits acts are to be complied by the
organization.
Environmental  India is being considered as one of the most polluted
countries in the world.
 Automobile sector is having direct impact on the
environment (Percival et al. 2015).
 KIA Motors will have to follow the stringent regulations
related to environment in doing their business in India.
 Huge pressure is there from different local and
international NGOs for the business organizations.
 Introduction of electric vehicles will be an effective
strategy of KIA motors in dealing with the environmental
issues.

7EVALUATION OF HRM STRATEGIES
Employee Involvement
Importance of Human resource management in employee engagement
In the current business scenario, one of the key challenges being faced by the business
organizations is the issue related to the management of human resources. Thus, it is important
to have an effective strategy of human resource management in order to enable KIA Motors
to effectively manage their employees in India.
Reward management
Initiation of the reward system
One of the key initiatives to enhance the effectiveness of the employees along with
engaging them in their workplace is to provide reward and recognition for their jobs.
According to the resource based theory, employees are one of the tangible resources for the
business organizations. Thus, it is important for the business organizations to enhance the
effectiveness of their human resources in order to gain competitive advantages in the market.
Thus, initiation of the reward concept will help KIA motors to motivate and engage their
employees in their workplace. Moreover, the employees will be further motivated to enhance
their productivity and effectiveness if they are being given proper recognition.
Initiation of Transformational leadership
As discussed earlier, India is having population from different cultural and social
backgrounds. Thus, it is important for KIA motors to have effective strategy of leadership in
order to maintain the diversity in their workforce along with managing them to deal with the
organizational challenges. According to the theory of transformational leadership, it is the
responsibility of the leaders to effectively determine the requirement of their employees and
engage them in the decision making process. This will enable the employees to engage
themselves in the workplace along with having higher morale and motivation. Moreover,

8EVALUATION OF HRM STRATEGIES
initiation of the transformational leadership will also help the organization to equip and train
the employees according to the market and business requirement. This will enable KIA
motors to have right employees in right place for the right job. In addition, with having the
motivated and engaged employees in the workforce, KIA motors will be able to compete in
the Indian market effectively.
Evaluating the effectiveness of HRM strategies
There are different strategies related to the Human Resource Management that can be
adopted by Kia Motors, as this will help in increasing the effectiveness of the different
employees in the organization. Proper planning is essential in nature, as this will help in
increasing the entire effectiveness of the company. The proper goal setting is essential in
nature as this will help in improving the entire performance of the company and this will
measure the effectiveness of the teamwork as well.
The different techniques and ways through which the effectiveness of the different
strategies of HR is evaluated are as follows:
This is required to examine the quality of the employees who are working in the
respective organization. The detailed organizational chart is essential in nature that
has to be prepared that will fill the functional needs. The different tasks has to be
allotted to the different employees in such a manner that this will help in maintaining
desired quality for improving the performance of the organization (Jackson, Schuler
and Jiang 2014)
The flexibility of the employees is required to be maintained in such a manner that
this will help in retaining the different employees in the respective organization. the
Human Resource strategies has to be strong in nature as this will lower the turnover
rate of the employees in the organization as this is the main asset of the company.

9EVALUATION OF HRM STRATEGIES
Flexibility is essential in nature by reducing the lack of communication in the
organization. This flexibility among the employees in the organization will help in
increasing the production of the organization (Marchingtonet al. 2016)
Due to the lack of communication and lack of respect between the different staffs in
the organization, it is essential for the entire HR department of the organization to
plan with the utilization of different resources in such a manner that this will help in
increasing the effectiveness of the flexibility of the different employees in the
organization (Cooke, Sainiand Wang 2014)
Lastly, the strategic integration and the reward system have to be implemented in an
effective manner, as this will help in motivating the employees in the organization to
perform better. The reward management system is essential in nature, as this will help
in success of the entire organization. The motivated employees will help in increasing
the entire productivity of the organization, as this is essential in nature (Sparrow,
Brewsterand Chung 2016).
Analysis of the differences between global HRM strategies
There are different kinds of training methods that can be adopted by the respective
company, as this will help in analyzing the difference in the different global HR strategies
(Kramar 2014). The different HRM strategies related to the training and development will
help in reducing the differences and help in reducing the cross-cultural issues that is faced by
the employees in the organization. The training has to be conducted in such a manner that this
will help in developing different frameworks in an effective manner. The different methods
of training and development such as off the job training methods as well as on the job
training methods are essential in nature to train the employees in the organization to motivate
the employees to make them work towards the success of the organization (Slocum, Leiand
Buller 2014).

10EVALUATION OF HRM STRATEGIES
The success of the entire organization depends on the training of the employees, as
this will help in increasing the entire effectiveness of the company. The different HRM
programs has to be analysed in an effective manner as this will overcome the gaps in the
process of performance and the objectives to meet the differences that is caused by the wrong
training and development provided to the employees. The on the job training techniques is
essential in nature as this will help in developing effective training strategy to meet the gaps
and production will be efficient in nature as well. On the job training techniques will help in
making the employees be aware about the different practical training that is required for the
increasing productivity of the entire organization.
The training and development is essential and effective in nature, as this will help
them in performing through learning. The on and off the job training methods is essential in
nature as these help in changing the attitude of the employees towards performing the entire
task and this will increase the skills and knowledge of the employees as well. The
development program is essential in nature, as this will bring all the employees to higher
level that will have similar skills and techniques in an effective manner. The cross-cultural
gaps have to be reduced with different proper developmental strategies that can be
implemented, as this will reduce the cross-cultural gaps in the organization (Chelladuraiand
Kerwin 2017).
The different cross-cultural gaps will be reduced with proper implementation of
different developmental and training strategies, as this will help in reducing the global
differences between the different employees in the organization. The developmental
strategies will help in implementing different programs on training as this will help in
reducing the cross-cultural gaps and solve the issues faced by the different employees in the
respective organization. The cultural gaps have to be reduced in such a manner that this will
create harmony among the different employees when they are working in the organization

11EVALUATION OF HRM STRATEGIES
and this will highlight the importance of the teamwork. Proper teamwork is essential in
nature in respective organization as this will help in solving the cross-cultural issues and this
will effectively implement strategies that can help in solving the gaps as well with different
practical and theoretical knowledge.
Training and Development
Relationship between organizational performance and HRM
The human resource management strategies have huge effect on the performance of
the organization. The entire performance of the organization depends on the different
strategies that are required for making the organization succeed in the future. The employees
of the organization have to be motivated, as this will help in improving the performance of
the organization to retain the employees in the organization as well (Armstrongand Taylor
2014).
The different motivational theories can be utilized in such a manner that this will help
in understanding the different queries that has been affecting the reputation of the
organization. The organizational competence is essential in nature as this will help in
increasing the entire productivity of the organization and human resource management is
tangible in nature that will help in solving the queries. There is a positive and cordial
relationship between the organizational performance and the human resource management as
the different strategies of the human resource management will help in understanding the
different developmental activities that has to be adopted by them. The developmental and
training programs have to be adopted in such a manner, as this will help in increasing the
entire competence of the organization along with the employees.
The development of the employees in the organization is affected positively with the
help of the performance of the organization. The performance of the entire organization as

12EVALUATION OF HRM STRATEGIES
well as the development of the employees is affected with the help of different resources in
an effective manner. The development of the employees in the organization helps in
introducing the relationship in such a manner that this will help in affecting the performance
in a positive manner (Albrechtet al. 2015). The human resource department helps in
facilitating the change in the organization by providing training to the employees that include
on the job training along with in-house or off the job training methods. The on the job
training methods will help in successfully implementing different practical techniques as this
helps in solving the different queries in an effective manner. The organizational change
management will help in addressing the different requirements in such a manner that this will
help in analyzing the effect of different changes in an effective manner (Khanand Rasheed
2015).
The employee recognition concept helps the respective organization in such a manner
that this will help in creating as well as continuing change in the tasks that are performed by
them (Brewsteret al. 2016). The change that has been adopted by the organization has to be
implemented in such a manner that this helps in improving the training and recruiting
techniques as well. The human resource management will help the entire organization along
with the employees in the organization to include change in their perspectives, as this will
help them in adapting to the different changes that takes place in the organization. This will
help in introducing innovative strategies as well as this will help in solving the different
queries in an effective manner and this will generate good and positive strategies as well
(Pailléet al. 2014).

13EVALUATION OF HRM STRATEGIES
Analysis of the national, cultural and organizational issues
National issues related to HRM
The human resource management of an organization is affected by many issues that
include the political and legal factors that are related to the country where the organization is
operating. The stability of the political condition of the country can affect the operations of
the organization. The political stability of the countries differs from each other and this can
further affect the profitability of the organization as well. Kia Motors has to thereby consider
this factor before entering the political market. The political situation of South Korea is quite
different from that of India. The national environment or political ambience of India is highly
welcoming towards any type of new business organizations (Al Ariss and Sidani2016). Kia
Motors has to strategically decide the ways by which they need to comply with the laws and
regulations that are related to the legal system of India. The ethics related to the business
organizations in India is also different from that of South Korea. The human resource
department of the organization therefore needs to formulate the ethics of the business with
respect to those followed in India. The laws related to human resource in India is also quite
different that of South Korea(Alpaydin 2015). The human resource departments of the
organizations that are operating in different countries need to operate in such a way so that
they can comply with the laws of that country. The economic situation of India will also
affect the operations of Kia Motors. The economy of India is stronger than that of South
Korea and this will have a positive impact on the revenues of Kia Motors.
Cultural factors affecting HRM strategies and training expatriate
The cultural situation of India will affect the formulation of HRM strategies of Kia
motors. The different forces related to the society which affect the culture of that country are
the beliefs, actions and values related to a group of people. The conflicts related to the
cultures of the different countries are related to ethnicity and religion. The major dimension

14EVALUATION OF HRM STRATEGIES
that are related to the cultural situation of the country are, power distance, individualism,
avoidance of uncertainty and long-term orientation(Bamberger, Biron and Meshoulam
2014). Power distance is related to the inequality that exists between the people of the
nation. As the distance increases the differences of status between the people also increases
and the difference in authority also increases. The individualism is referred to the ways by
which the people of the country try to act as individuals or groups(Welchand Björkman
2015). The dimension related to uncertainty is related to the preference of the people of the
particular country regarding structured or unstructured situation. The long-term orientation
of the people of a particular country is related to the long-term or the short-term values of
the people(Baum 2016).
Organizational factors that affect HRM
The organizational factors also affect the HRM strategies that are formulated after
then expansion of an organization. The structure of the organization and the organizational
culture affects the HRM strategies that are formulated during expansion in any other
country. The culture of the organizations is different in India as compared to the culture in
South Korea. The difference in the culture of the employees will also affect the HRM
strategies of Kia Motors(Brewsterand Hegewisch 2017).
Performance management
Performance management mainly includes the activities of the organization that help
in ensuring that the goals that are set can be met in an efficient as well as effective manner.
The process of performance management mainly focusses on the performance of the
organization, any particular department of the organization and the employees as well. The
process that is applied by the management to align the resources, employees as well as
systems of the organization can also be termed as performance management
system(Fagerström, Lønningand Andersen 2014). The major benefits that are provided by

15EVALUATION OF HRM STRATEGIES
the performance management of the organization are managing the employees and
performance of the system as well. Integrated software is used to manage the performance of
the employees in the organization. The development of the organization is based on the
performance of the employees and their production as well.
Performance appraisal methods
Performance appraisal methods are used to assess the performance of the employees
of an organization in a systematic manner. This is a development tool that can be used to
ensure the overall development of the employees and the organization as well.
The process of performance appraisal consists of eight steps which are, definition of
the objectives, expectations from the job, designing the appraisal program, performance
interviews, using the data for the appropriate purposes, identifying the opportunities, using
the physical processes, social processes and assistance by human and the
computers(Jackson, Schuler and Jiang 2014).
The individual performance of the employees of Kia Motors can therefore be
improved with the help of the different performance appraisal methods that are discussed
above(Slocum, Leiand Buller 2014).
Management skills required in international business
Kia Motors is an international organization which has its operations in South Korea.
The management of a global organization requires many different characteristics that are
related to managing the employees in such a way so that they support the decisions of the
management. The characteristics of the global leaders are, overseas experience, self-
awareness, sensitivity to the cultural diversity, humility, curiosity, honesty, strategic
thinking on a global scale, patience, well-spoken, presence, good negotiator(Nelet al. 2014).
Overseas experience is important for the global leaders so that they can understand the

16EVALUATION OF HRM STRATEGIES
global environment easily and plan their business activities according to their understanding.
The leaders of the global organizations need to be sensitive towards cultural diversity as the
cultural differences between two countries are quite large and this can affect the operations
of the business as well(Phillipsand Gully 2015). The leaders can therefore manage these
situations so that the employees can work effectively. The leaders of international
organizations need to have clear strategic thinking and they also need to possess a global
perspective towards each and every topic. This will help them in formulating strategies so
that they operate in the global locations in a profitable manner(Pournader, Tabassiand Baloh
2015).
Conclusion
The report can be concluded by stating that Kia Motors needs to consider many
different aspects related to business before starting their operations in India. The differences
in the political, economic, social, technological, legal and environmental situations between
India and South Korea can affect the ways by which the business can operate. The cultural
differences between the two countries can also affect the operations within the organization.
The difference in the cultures of the two countries can affect the mentalities of the employees
of Kia Motors. India and South Korea have major cultural differences and this can create a
culture shock in the organization. Kia Motors needs to formulate strategies related to the
management of the performance of the employees and the organization itself. This will help
the organization in improving the performance of the employees before they can plan for an
international expansion. India is an economically stronger country as compared to South
Korea and this will act as a positive factor for the organization. Kia Motors will be able to
operate in profitable manner in India and their expansion can also be successful. The
expansion of Kia Motors will therefore be majorly affected by the external conditions of the
country where it is planning to expand its operations. The analysis thereby proves the HRM

17EVALUATION OF HRM STRATEGIES
strategies of the organizations need to be formulated after the external analysis of the
environment where the business operates. The situation of the country where the business is
expanded affects the HRM strategy formulation and the ways by which the leaders of the
organization need to act in the situation.
Recommendation
Kia Motors is therefore recommended to analyse the environment of India properly
before entering the market so that they can formulate the strategies of the organization related
to HRM which will affect the capabilities of the employees of the organization. The most
important part of the analysis is the examination of the political or economic situation of the
country as this will affect the ways by which the organization needs to operate in India. The
HR managers or leaders who will be appointed in the organization need to be sensitive
towards the culture of India so that they can act accordingly and the employees do not
experience ant types of issues while working in the Indian branch of the organization. In this
manner, Kia Motors will be successful in expanding its operations internationally and gaining
profits as well.

18EVALUATION OF HRM STRATEGIES
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