HRMT 20026 Strategic Human Resource Management Assignment 3

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HRMT 20026
Strategic human resource
management
ASSIGNMENT 3- Individual Case Study
Report
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Table of Contents
Introduction................................................................................................................................3
Question 1..................................................................................................................................4
Human resources strategies adopted by Carlsberg.................................................................4
Question 2..................................................................................................................................5
The winning behaviour strategy and the reasons for implementation...................................5
Question 3..................................................................................................................................7
Relationship between winning behaviour strategy and HR practices....................................7
Question 4..................................................................................................................................8
Winning behaviour as a challenge in Malaysia......................................................................8
Question 5..................................................................................................................................9
Winning behaviour strategy in the Australian context...........................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
The report analyses the implementation of the new strategies adopted by the Carlsberg
Group, a company dealing in more than 500 different beer brands. This new strategy adopted
by the company covered the human resource management and the maintenance of the
workplace diversity as the company collaborated with various other companies. It further
contains the recommendations for the effectiveness of the principle of new strategy in the
Australian market.
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Question 1
Human resources strategies adopted by Carlsberg
In 1947, the Carlsberg Group was founded in Denmark with around 41,000 employees till
date. In spite of achieving success initially, the company lagged behind other competitors and
became unable to compete in the global market. Hence, to cope up, the company then CEO,
Nils Anderson adopted for new and different strategies which were based on a new concept
of “Must win Battles” (Soderberg, 2014).
The strategy adopted by the Carlsberg Group of “Must win Battles” was an initial phase and
the company through this strategy proceeded towards adopting the strategy of “Winning
Behaviours”. The company adopted the initial strategy with the understanding that the
company needs to face certain battles in order to achieve its desired objectives and goals. The
following challenges as battles were seen in the company:
 A development of a common culture among teams and groups
 Growing and faming brand name of the company
 Driving excellence in all its operations
 Making profits in the major beer markets
 Enhance and advance the skills and capacities of the employees
 Investment through collaborations and mergers (Soderberg, 2014).
The Carlsberg Group adopted this winning strategy as it considered that the most important
factor is to create a new culture of the winning company and to enhance the staff skills so that
they continuously lead in the global market (King and Walker, 2014). But this strategy also
faced challenges as the Carlsberg Company proceeded with new collaborations and mergers
with other global brands. Further this strategy was also unacceptable by many companies as
this failed to recognise other company’s values and cultural aspects. Hence Carlsberg Group
adopted for a strategy which was a development of a common concept. This strategy
involved the participation of new merger companies along with the current foreign
companies. Thus, the result came up in the Carlsberg Group as a strategic plan was the
“Winning Behaviours” strategy.
The human resource strategies are classified as overarching strategy and specific strategy
which specifically relates to the human resource management (Trong, 2013). The Carlsberg
Group has adopted specific strategy as it has centrally focussed on the management of human
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resources and employees engaged in the company and its foreign subsidiaries. The company
has specifically focussed on the challenges which it could face on mergers across the globe
and the company has termed it as ‘Battles’. Hence, the company has adopted the winning
strategy in order to survive up with these challenges and battles.
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Question 2
The winning behaviour strategy and the reasons for implementation
On analysing this strategy, it is settled that the new strategy is far more effective as compared
to the previous one. The justification for the effectiveness is the concepts which are promoted
under the new strategy of winning. There are five basic concepts which are drawn by the
company as a guideline of the working in the company. These five principles and concepts
are:
1. Forming a strong bond
The company under this welcomed the new cultures of different countries and
organisations with a belief that together it shall be easy to achieve success and grow
and win (Lee and Kramer, 2016).
2. Desire to win
The company focuses on action orientation rather than merely planning. The company
aims at taking bold steps towards execution of the plans and thus strive in every way
to achieve success and fulfil its goals.
3. Customer oriented
The company’s major and first priorities are the needs and preferences of the
customers and the company aims to make every possible attempt to satisfy the
consumer’s needs and demands. The company further plans to give an improved
experience to the customers as well as employees (Cantarello, et. al., 2012).
4. Power to bring change
The company posses such talents who are empowered to take up challenges as
individuals as well as teams. The company has built such environment which rewards
and appreciates efforts of its people and progress (Slocum, et. al., 2014).
5. Engagement with society (corporate social responsibility)
The company aims at making effective and positive contribution in the society as it is
of the view that business needs to do so in order to increase the company’s brand
name (Gravili, 2017).
Reason for the implementation of the winning behaviour strategy
The winning strategy adopted by the Carlsberg Group includes the performance of such
exercises and actions which are purely consistent with the company’s global vision and
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mission. The intention of the company’s management is that the new strategy and its
application identifies the company’s global business strategy along with paying respect to the
local needs and demands. In the words of CEO of the Carlsberg Group the company’s
winning strategy is effective in its operation because it has achieved the right balance
between cultural diversities along with allowance to the local brands to flourish.
The main reasons for the implementation of the winning strategies is analysed as follows:
1. Encourage a global way of thinking:
This new conceptual change has allowed the companies to initiate and encourage a
global way of thinking. Hence, the implementation of this strategy is done with the
aim of establishing cultural harmony among business and make the staff and
employees to think in a broader scope. This strategy shall contribute in the
enhancement of the thinking and exploring new ideas and innovations (Belizon, et.
al., 2014).
2. Intend to integrate:
The Carlsberg Group by implementing this strategy intends to form an integration
between international human resources. Further this strategy is implemented with the
view that it shall establish a communication network both externally and internally
which shall be completely business manifested. This communication shall enable the
foreign staff to communicate effectively with the local staff which shall in turn result
in efficiency of work performance.
3. Customer satisfaction:
The Carlsberg Group has a view of achieving full customer satisfaction as it has
planned to implement customer-oriented plans to be includes within the five
principles of the new strategy. Hence, the reason behind the application is that the
company shall acquire full customer satisfaction and strive to endeavour and give its
best to the customers (Tian, et. al., 2016).
4. Enhancing talents:
The new strategy of winning is adopted due to the reason that it shall enhance the new
talents through interaction and integration. It shall also encourage them to give the
best of their performance. This shall in turn increase the company’s productivity and
returns as the best shall be given by its people.
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Question 3
Relationship between winning behaviour strategy and HR practices
The implementation of the winning behaviour strategy by the Carlsberg Group is done
keeping in mind the complete HR practices already in operation in the company. It is
important for the Carlsberg Group to strive a balance between HR practices and the principles
of the new strategy in order to avoid conflicts in opinions. The following analysis is drawn as
a relationship of winning strategy and other HR practices:
1. Corporate social responsibility:
The company aimed at establishing engagement with the society in the principles it
incorporated under the new winning behaviour strategy. The company owes certain
responsibility towards the society and every action of the company towards its
mission shall be consistent with the social norms. The company’s main aim is to
provide expert quality products and services to the society willing to avail it. The
implementation of the winning strategy is also done with a principle of social
responsibility incorporated within it. Hence, the Carlsberg Group has strived to seek
and achieve a balance between its new strategy with the existing HR practice of social
responsibility (Morgeson, et. al., 2013).
2. Diversity and equity:
Almost every organisation aims at maintaining cultural diversity within its workplace.
All the actions and move of the company is for harmonising workplace diversity and
avoid conflicts of interest. The winning strategy of the Carlsberg Group incorporate a
principle of togetherness as the company has moved towards collaborations
worldwide. Hence, the company has established a relation between its strategy and the
practice of maintaining workplace diversity (Popaitoon, et. al., 2014).
3. Workforce development:
The Carlsberg Group has focussed on developing its working staff and management
as it has implemented training programs for the employees and staff members. The
implementation of the new winning strategy is theory oriented as well as action
oriented. The company has aimed at providing the best of the knowledge of its new
strategy to its employees through training programs. This strategy is also an part of
the curriculum of the Carlsberg Leadership Academy where managers are trained at
early stages for a global career.
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4. Rewards:
The winning strategy has also incorporated within its principles the concept of
awarding the efforts and initiatives taken by the employees. This strategy ahs
encouraged the new talents to come up with innovative ideas and opinions for the
advancement of the company. Hence, the company has successfully achieved a
balance between the new strategy and the existing practice of rewarding.
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Question 4
Winning behaviour as a challenge in Malaysia
The Carlsberg Malaysia came up with the mission of branding the company’s name in the
Asian countries particularly China, India and Malaysia. Malaysia is a country with diverse
culture having Malays, Chinese and Indians as the populations. But the implementation of the
winning behaviour strategy has made the Carlsberg Group face certain challenges while
expanding its business to Asian countries particularly Malaysia. The following are the issues
faced by the company while implementing the new strategy:
Ethnic issue:
The company has to face ethnic issue which proceeding its sales in Malaysia as the company
lacked the participation of local people that is Malayan community (Gannon, et. al., 2012).
The Malayan community has refrain from joining the Carlsberg Group as the Malayan
community is Muslim majority who refrain from engaging in the manufacturing and selling
of alcohol. Due to this the Carlsberg Malaysia has a greater number of Malaysian Chinese
expatriates including the administration and the managers. This has made the company face
difficulties in dealing with the culture prevailing in Malaysia and fall behind its competitors.
Lingual issue:
The Carlsberg Group has also faced the issue of language in implementing its winning
strategy in Malaysia as the foreign employees faced difficulty in understanding the language
of the local community. This issue came up as the company lacked the local employees who
could act as mediators between foreign and local employees to promote effective
communication. Hence, language became a major barrier in the expansion of the Carlsberg
Group in Malaysia.
Restriction in advertisement:
The Malays being Muslims restricts from dinking beer and thus the company has to face
heavy taxes on beer in Malaysia. Further, in implementing the winning strategy the company
was also restricted to make advertisement of beer on television, radio and billboards. Hence
there was issue of publicity while implementing the new strategy.
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Question 5
Winning behaviour strategy in the Australian context
The application of the winning strategy by the Carlberg Group shall imply positive results as
the business of the company and the products are in demand in the Australian culture which
is derived from the western culture particularly Britain.
The winning strategy shall be a success in the Australian market as the Carlsberg Australia is
proceeding in the global market with the strategy SAIL’22 which aims at making Carlsberg a
great success in the Australian market. The key components of SAIL’22 are included under
the heading “Strengthen the Core” and “Position to Grow” which shall be easily implemented
by the winning strategy and its principles.
Recommendations to implement winning strategy
1. The Australian market is in demands of brewers and similar drinks and hence, the
Carlsberg Australia stands at an opportunity of extending its sales. By implementing
the winning strategy, the company can establish vast knowledge base and build a
team-based culture for effective functioning (Canibano, 2013).
2. Implementation through learning programs:
The Carlsberg Australia can implement the new strategy by starting a learning
program for the staff of the Carlsberg Australia to make them aware of the principles
on which the company is focussing (Kidron, et. al., 2013).
3. Aim at establishing cultural diversity:
The company shall achieve success by establishing cultural diversity within its
workforce and this shall be achieved by the implementation of the winning behaviour
strategy as this strategy aims at establishing harmony among the people of different
cultures (Martin, et. al., 2012).
4. A change in the business trend in the Australian market:
The winning behaviour strategy shall make the Carlsberg Australia bring a change in
the traditional trend of business in the market and it shall effectively implement the
core ideas of adopting change in business practices.
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Conclusion
Thus, to conclude the Carlsberg Group has made an initiative of adopting change and
diversity in its business practice by adopting the principles of a new strategy winning
behaviour. The strategy has the principles of integrating people and standards in order to
achieve goals and objectives of the company. This strategy shall also prove to be an effective
concept in the Australian market due to the prevailing Australian culture.
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