Analyzing HRM Strategies for High Tech Co's Thailand Expansion

This report provides an analysis of the human resource management strategies for High Tech Co, a UK-based company specializing in automobile parts, as it plans to expand its business into the Thailand market. The report outlines the company's background, aims, and objectives, emphasizing the importance of strategic HRM policies and procedures for attracting and retaining talented employees. It includes a PESTEL analysis to assess the political, economic, socio-cultural, technological, environmental, and legal factors affecting the company's operations in Thailand, as well as Porter's Five Forces analysis to evaluate the competitive landscape. The report also touches upon Handy’s Typology and offers recommendations for developing the business and HRM practices to enhance employee performance in a competitive environment, while also acknowledging the limitations of the analysis. The overall goal is to guide High Tech Co in establishing a healthy working environment and achieving long-term success in the international market.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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Table of Contents
Introduction................................................................................................................................3
Background............................................................................................................................3
Aims and Objectives..............................................................................................................3
Development..............................................................................................................................4
PESTEL Analysis...................................................................................................................6
Political Factors..................................................................................................................6
Economical Factors............................................................................................................7
Socio-Cultural Factors.......................................................................................................8
Technological Factors........................................................................................................9
Environmental Factors.....................................................................................................10
Legal Factors....................................................................................................................11
Porter’s Five Forces Analysis..............................................................................................12
Strategic Human Resource Management Policies and Procedures......................................14
Handy’s Typology................................................................................................................15
Recommendations................................................................................................................15
Limitations...........................................................................................................................16
Conclusion................................................................................................................................17
Appendix A..............................................................................................................................19
Survey title: Employee Work-life balance survey...................................................................19
Survey Questions.................................................................................................................19

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Porter’s Five Forces Diagram..............................................................................................20
References................................................................................................................................21

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Introduction
Background
High Tech Co is United Kingdom based company, which is principally engaged into
the development and research, sale and production of automobile parts. The company has
categorized its products into three different segments; accessories and sensors, interior parts
of the automobiles and accessories of the fuel systems. The sensors as well as accessories of
the company include fuel level vent valves, sensors, accessories and water level sensors. The
technological company’s accessories of the fuel system highly include assembled parts of oil
filler pipes, imported control valves, joint pipes, locknuts, filter brackets, fuel pump fixed
thimbles, lock rings and others (Anitha 2014).
The interior parts of the company’s automobiles include high level technology,
airbag, air conditioning duct, dashboards and others. The company also has huge distribution
of its products as well as services within the domestic market as well as overseas market
segments. However, the company has flourished a lot in the domestic market and gained huge
profits. In addition to this, the city of York, United Kingdom, have seen a boom among the
high technology and science firms, as the companies have expanded a lot (Van den Brink,
Fruytier and Thunnissen 2013). Moreover, the High Tech Co has managed to win the hearts
of many employees and its customers as well. The Company is now planning to expand their
business in the markets of Thailand (Ashleigh, Higgs and Dulewicz 2012).
Aims and Objectives
The purpose of this report is to analyze the environments in which High Tech Co is
currently operating while taking into consideration its expansion in the future. The company
has flourished in its native market and now it is planning to expand its business in the

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markets of Thailand. Moreover, the report also suggests some policies as well as procedures
which the Chief Executive Officer of the company needs to adopt in order to become an
employer of choice and also to retain and attract the most talented employees and staff
members. In addition to this, the report consists of some strategies on how the organization
can develop its human resource management procedures and policies, in order to attain a
healthy working environment. It is very important for an organization to keep its human
resource policies and procedures in place. A strategic human resource management can help
the company survive on the long run (Ball et al. 2012).
In addition to this, the report also throws light on the introduction of a proper and
appropriate reward system in order to attract highly talented candidates, by taking into
consideration the functions of the existing employees. A good reward and recognition system
is considered as a ‘pulling’ strategy. The core reason behind this is that the systems pull the
organizational employees to give their best shot and perform up to the mark. The human
resource managers of the High Tech Co are responsible for designing as well as
implementing an appropriate reward system for encouraging and motivating the staff
members (Austin and Pinkleton 2015). Furthermore, the report makes some
recommendations on how to develop the business and human resource management of the
company in order to increase the overall performance level of the employees, considering the
competitive environment.
Development
The human resource management of any company refers to the overall procedure of
selecting as well as recruiting the employees and staff members, providing them with
orientation and induction, development and training for the assessment of the employees
(Ball et al. 2012). The High Tech Co is a United Kingdom based company, which has

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managed to win the hearts of many consumers as well as their employees. The company has a
sound human resource management policy and procedure (Twarowska and Kąkol 2013).
Interview with their workers have proved the fact that the company highly provides the
employees with a well balanced work as well as personal life. The employees have no
complaints against the organizational leadership or management. In addition to this, the
company’s human resource policies as well as procedures are highly admirable and
appreciated by others (Cavusgil et al. 2014).
High Tech Co has managed to introduce various policies related to work health and
safety into their organization, in order to manage and retain talented employees as well as
staff members. However, the company boasts about their work life balance. In addition to
this, High Tech Co believes in hiring the best skilled workers, who have sound knowledge
regarding technology and the automobile industry. According to Deyoe and Fox (2012), it
has been found out that the employees are being given thirty to forty minutes of training each
day, in order to develop their behavioral skills towards their customers. Not only these factors
help in improving the workers’ personality but also foster the environment of working. The
company hires the right employees and organizes orientation programs for them, which in
turn proves to be beneficial for the company itself.
Recently, the High Tech Co is planning to expand their business in the international
markets. Initially, they have chosen the market of Thailand for building up their business.
However, for future expansion, the company needs to have a clear idea regarding their
current operating environment. It includes both the internal as well as the external
environment of the organization. The internal factors which affect the environment of the
organization include; conflicts among the staff members, money, culture of the company and
others (Kumar et al. 2012). The external factors which highly affect the environment of the
organization include, the economy of the country, competition among other companies,

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political and legal system of the country and the changing preferences of the consumers as
well as the suppliers. Such factors highly impact the working environment of the
organization. Therefore, it is immensely important and necessary for the High Tech Co, to
keep such factors into mind before expanding their business into the international platforms
(Dillon 2012).
Currently, the business of the High Tech Co is flourishing in the market of York,
United Kingdom (Downs and Swailes 2013). However, it is important to discuss in this part
of the report, about the political, economical and other factors, which is affecting the
company’s progress and growth. The factors under which the company is carrying out their
organizational strategies are discussed in the form of PESTEL analysis. The purpose of the
PESTEL analysis is to discuss about the different political and other factors of various
countries. Different countries have different political and legal systems, customers’
preferences, environmental factors and many more (Teague and Roche 2012).
PESTEL Analysis
Political Factors
The political factors of any country play a very important role and also have a direct
impact on the overall profitability of any automobile industry. The government officials are
all around the world favoring for the low emission vehicles. In addition to this, the taxes on
the luxury cars have grown higher in the last few decades. The environmental friendly cars
are in demand globally (Tian 2016). However the High Tech Co has been receiving higher
support from the government officials for their lower impact in the environment. The
company also uses certified interior parts and sensors, from exclusive brands. In addition to
this, the rules and regulations of the government heavily matters from brand to brand.

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Moreover, the company has technology which is highly fuel efficient and also low on the
emission, thus, it can pass the government rules very easily.
Thailand is the second largest country of Southeast Asia, in terms of economy.
However, the country is currently facing some political issues, which is hampering its
economic growth. In previous times, Thailand was one of the most politically stable
countries. The country receives support from international partners and therefore, it is high
time for High Tech Co to enhance their business opportunities in order to flourish.
Furthermore, if the company wants to expand their business into the markets of Thailand, it
needs to have a clear idea regarding their political situations and factors. In addition to this,
the import and export rules as well as taxes highly vary from region to region. A thorough
research and development would help the company perform better (Dunning 2012).
Economical Factors
The economic forces are of particular importance when taken into the context of the
automobile industry. High Tech Co has been planning to expand their business into the
markets of Thailand. However, according to recent reports, it has been found the economic
sector of the United Kingdom has been hit hard by the current crisis in the economy (Killing
2012). At the times, when the overall economic condition of the country is not good, the sales
of the technology and vehicles fall to a huge extent. The demand for such luxuries and high
priced items also get hugely affected due to the country’s overall economic crisis. In addition
to the normal prices, the taxes are also huge (Sutcliffe 2014).
If the country’s economic conditions are good, then the sales remain high in the
developed countries. However, while expanding the business into the markets of Thailand,
High Tech Co needs to keep the economic factor of the country into consideration. The
company needs to keep a track of the past economic crisis, which affected the country and

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how it is going to combat that. The subsidiaries will help in attracting and keeping highly
skilled employees and staff members. It can be done through stock compensation procedure
as well as profit sharing. Subsidiaries also help in providing better outlets for research and
development. In addition to this, it will help High Tech Co to reduce liability and provide the
company with additional privacy as well as security. In addition to this, for expanding the
business, the company will require additional capital. A for-profit organization can obtain
traditional loans from the banks and even venture funding for the capital (Forsgren and
Johanson 2014).
Socio-Cultural Factors
The markets are highly influenced by the socio and cultural forces of the country. The
automobile and technological industries get highly affected by the changing socio and
cultural needs and trends. In addition to this, recent reports have conveyed that the market of
High Tech Co is also getting affected by the changing preferences of the consumers.
Consumers and their preferences change over time. Therefore, it falls under the responsibility
of the company to keep a track of the changing preferences, behaviors and attitudes of the
consumers, in order to cater according to their choices (Killing 2012).
The technological companies need to adopt certain strategies in order to cater to the
most of their target consumers. The companies should introduce new and innovative items as
per their target consumers’ choices as well as preferences. In addition to this, the latest social
trends also keep changing on a continuous basis, which affect the overall popularity of the
brands as well as models. The human resource managers of the company should focus on the
employees’ English proficiency level. Moreover, they must have good communication skills
and be able to read and write in English. This will help in promoting the communication
between the subsidiaries and headquarters. English is the primary language through which

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they can communicate with overseas employees; therefore, the managers must focus on this
factor (Girling 2012).
The human resource managers of the company should introduce some latest
technologies within the organization. Moreover, installation of feedback machines within the
organization will help in getting feedbacks of the consumers. In addition to this, the human
resource managers should implement new and innovative working strategies within the
organization, so that it motivate and encourage the workers to work better every day.
Furthermore, introduction of reward and recognition programs will also benefit the company
to a huge extent. Gathering feedback from the employees as well as the consumers helps in
gaining an understanding about the rights and wrongs of the company (Hamilton and Webster
2015).
Technological Factors
The innovation and technology have become the two most important determinants of
the automobile and technical industry’s market share. The more the company is innovative,
the higher is their market share. Taking this fact into consideration, it is worth mentioning
that all the major companies plan to make huge investments in the segments of research as
well as development. This is because, they prefer researching and developing the resource
units before actually considering their capabilities. Moreover, the High Tech Co has invested
huge in their market development section (Schuler 2015).
In addition to this, they have made further investments into the research and
development areas. They are planning to introduce latest developments in the recent years.
However, before entering the markets of Thailand, the company should further make
investments into getting an idea regarding the country’s marketing strategies and more.

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Moreover, the company can also focus on to fuel efficient vehicles and more innovative
technology, in order to rule the markets of the new country (Grant 2016).
Additionally, the human resource managers of the company need to adopt latest
strategies in order to cope up with the technological factors of the company. E-learning can
provide excellent opportunities to the employees to increase their level of knowledge.
Therefore, the human resource managers should send the employees online training
materials. Both the employees and trainers should have the accessibility of the training
materials. Moreover, through technological development, the human resource managers of
the company, settled in United Kingdom, can send various materials to the company which
will operate in Thailand. In addition to this, the employees present in remote locations can
also get benefitted through this procedure (Stone 2013).
Moreover, setting up of the Integrated Human Resource Information Systems will
have profound effects on the firm on implementing them. Most often the organization tends
to replace several systems which are related to these. In addition to this, the managers need to
focus on the personnel database systems, benefits and payroll systems which are the major
factors to be taken into consideration. Focusing on the improved processing as well as
reporting units will prove to be highly beneficial for the company itself. In addition to this,
creating a webpage of the company will let the overseas employees or applicants get an idea
regarding the company’s overview. Moreover, a career portal should also be created as a part
of recruitment strategy so that the applicants can apply, based on their qualifications (Schuler
2015).
Environmental Factors
The environmental factors are much related to the political factors are various laws
related to the environmental friendliness as well as carbon emissions in different countries.

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The automobile and technological industries play a very important role in this. It is not easy
for a technological company to open and expand their business into any country they want.
They have to conduct high level research work, before actually making the plan a successful
one. The vehicles which are favored by the government as well as the law emit less fuel.
They receive tax subsidies on less fuel consumption. The pollution tests and other tests
related to technology have grown stricter and the companies who pass such tests are allowed
into the markets of United Kingdom. However, the High Tech Co has passed several tests in
the past years. In addition to this, the company also has some government verified
certificates. Therefore, it can be said that the company will not have any problem in this
aspect, while expanding into the markets of Thailand (Hamilton and Webster 2015).
Legal Factors
Law is yet another important factor, which every organization needs to keep in mind,
while expanding their business into other international countries. It highly affects the overall
performance as well as profitability of the vehicle and technological brands and companies.
The technological and automobile companies which are planning to expand their business
into the international markets have to pass through several legal tests in order to prove its
quality as well as safety (Stone 2013). The laws related to pollution have gone stricter. The
items which are being exported have to pass emission controls, which is becoming stricter
day by day. However, the High Tech Co’s core mission and vision is the safety their target
consumers and employees.
In addition to this, there are several laws related to the employment, like Labor Laws
and others. The act is one of the most important acts of Thailand, which was promulgated in
the year 1998. It establishes the minimum standards of work practices in the labor utilization
women as well as child labor utilization, severance, employees’ welfare fund and
remuneration. Therefore, this aspect will also not pose a great threat for the company’s