KiwiJewel: HRM Case Study Analysis and Strategic Recommendations

This case study analyzes the HRM strategies of KiwiJewel, a jewelry company, examining its performance management, IHRM, and global expansion efforts. The analysis explores the application of models such as EPRG and Lewin's change management model to understand the company's approach to internationalization, recruitment, and performance management. It highlights challenges related to performance management software implementation, employee critiques, and financial pressures, particularly in the context of global operations and cultural differences. The study also discusses recommendations for improving performance, including global performance-based pay systems and skill development initiatives. The analysis covers topics such as outsourcing, offshoring, and the impact of these strategies on the company's ability to achieve its goals.

Running head: HUMAN RESOURCE MANAGEMENT
Case study analysis of KiwiJewel
Name of the student:
Name of the university:
Author note:

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Answer to Question 1
Traditional theme based designs for the jewelleries enabled KiwiJewel to enhance
the reputation. Using high quality gems and stones acted as an agent towards luring large
number of clients and customers. Hiring new group of designers upgraded the standards
and quality of the jewelleries. This innovation paved the way for accumulating greater market
share (Bratton & Gold, 2017). In this context, mention can be made of the product
diversification and differentiation strategies for penetrating into the international markets of
UK, South East Asia. However, the central HRM functions were operated in the local
headquarters of New Zealand. Reference can also be cited of the changes in the recruitment
and selection policies, which seemed to be effective for the catering to the issues language
and cultural issues. With the improvisations in the expansion strategies, KiwiJewel
accumulated the market shares of ASEAN countries, Australia and that of US. Cheap labour
was one of the targets, which resulted in the acquisition of the markets of Oceania and
Thailand. In this process, Bailey et al., (2018) states that the control over the global retailing
network was high. Local expatriates were hired for maintaining the stability in the supply
chain network.
Continuous improvements strategies were developed by the managers for
improvising on the standards and quality of the operations. Here, EPRG model can be
considered for understanding the dynamics, which prevails in the workplace practices of
KiwiJewel. High pressure in the financial sector of Oceania aggravated the challenges in
retaining the existing level of revenues. As a result of this, there was a pool of difficulties in
producing effective quality jewelleries for the clients and customers at competitive prices.
Outsourcing and offshoring of the activities increased the scope and arena of the business,
especially the supply chain network. This aspects of offshoring and outsourcing
conglomerates all of the aspects of culture, finance, strategy, marketing and personnel
practice, which are the crucial components of EPRG model (Sparrow, Brewster & Chung,
2016). It is the responsibility of the personnel to expose appropriate approach towards
catering to the needs of the customers through the preservation of culture. Exposing
geocentric approach is beneficial for KiwiJewel in terms of globalizing the operations.
In the process of discussions, the IHRM director played the role of advisor, which
helped in undertaking effective decisions for the betterment of KiwiJewel’s productivity. One
of the interesting aspects was the launch of layoffs, which helped in upgrading the standards
of pay package for the employees. Here, there was a drastic transformation in the integration
of the new employees into the company. Marchington et al. (2016) is of the view that
Decentralization of the HRM functions upgraded the standards of the HRM policies,

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especially for the selection and recruitment. The local managers ensured that there is
enough fairness and transparency in the formulation of the policies regarding retention,
development, employee termination and others. The managers of KiwiJewel ensures that
frameworks and guidelines are followed for developing the policies. These approaches can
be considered as relevant to the strategic parameter of the EPRG model, where the main
aspects are global integration and national responsiveness.
Lack of integration resulted in the acquisition of 180 degree performance
management software in the workplace of KiwiJewel. This software seemed to be effective
for preparing the employees, driving their performance towards professionalism. One of the
negative aspects in this context is that the employees lacked skills to express themselves.
Annual job satisfaction report reflected deficiencies in the idea generation. According to the
arguments of Brewster et al., (2016), using support measurement system can be considered
as one of the personnel practice, which exposes geocentric approach towards developing
the best practices for the candidates to invest their talents in the services of the company,
KiwiJewel. One of the components of the mind-set in the EPRG model is that of strategy,
which encountered several changes in the case of the performance management.
Discrepancies were there in the capability of the personnel in terms of monitoring the
performance of the employees. Local subsidiaries were encouraged for using the
performance management feedback systems and job satisfaction surveys.
New initiatives regarding compensation and benefits for the employees reflects the
use of Lewin’s change management model. Unfreezing was done for the seniority based
system and fixed salary were ruled out. Geocentric and strategic approach was reflected
from the consideration of upgrading the unity and coordination through the creation of
competent and efficient workforce (Delery & Roumpi, 2017). Imbibing technology in the
performance of the local managers enhanced the competencies, skills and abilities of the
local managers. New initiatives regarding skill development relates to the exposure of
ethnocentric approach towards providing equal opportunities to the candidates for enhancing
their professional career.
Delving deep into the strategic management of KiwiJewel, it can be considered that
the management revolves around the recruitment and performance management of the
candidates. Propositions of alterations in the performance management systems is a means
for achieving infrastructural development through the means of digitalization. Outsourcing
and offshoring are the agents, which are directly related to the geocentric approach towards
strategizing the operations. Redistribution of the jewelleries according to the geographical
segmentation acts as an agent in terms of attaining financial flexibility (Rees & Smith, 2017).

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Global integration and national responsiveness are the components, which relates to the
usual functions of the transactions. The medium in this context is the advertisements, which
is a kind of direct marketing for expanding the customer rates. Gaining control over the
global retail network relates to the strategic management through the means of finance and
marketing. The approach in this context is that of polycentric, where the goal is to assess the
response of the customers towards the levied products and services.
Variation and decentralization of the HRM practices in case of the KiwiJewel reflects
the functional structure. In this context, the advisors play an important role in the decision
making process regarding the formulation of the decisions regarding recruitment and
selection, retention and termination. Five years ago, the recruitment and selection strategy
related to international employees from each of the companies operating. As stated by Mone
and London, (2018), this management can be considered as catering to the parent as well
as the host country nationals. New employees were acquired and integrated within the
workplace environment, which makes parent country nationals as the target market. In this
context, the management is that of international, which globalizes the operations through the
means of offshoring and outsourcing.
Unfreezing stage can be considered as the expansion of the polycentric approach
toward expanding the scope and arena of the business. Theoretical consideration towards
performance management seemed to be effective for catering to the skill development of the
employees. Frameworks and guidelines were followed for the formulation of the policies,
which provided a better shape to the operations. Shifting the focus on the compensatory
benefits is a planned and reasoned action of KiwiJewel in terms of catering to the needs,
demands and requirements of the personnel. Here, DeNis and Murphy, (2017) states that
model of effective performance management process can be related as it helps in evaluating
the effectiveness of the global performance based pay system in terms of equipping the
employees with all of the necessary resources.
Performance Planning and Evaluation (PPE) System can be an effective means for
measuring the feasibility towards reducing the complexities in the provision of providing
compensatory benefits to the employees. Reluctance towards providing the critique reflects
the complexities in assessing the annual strategic performance rates.
Answer to Question 2
Lack of integration was a crucial challenge in the implementation of the 180 degree
performance management software. Along with this, the employees did not produce
critiques, which was also a major challenge, it lacked the goals for the individuals and the
team members (Cappelli & Tavis, 2016). Here, there were resistances towards shifting from

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the traditional numbered performance management scales, which enhances the workplace
culture. However, the managers felt the need for unfreezing the current state and adopt new
performance management systems and software. The approach in this case was that of
geocentric in terms of ensuring the development of quality HRM practices through offshoring
and outsourcing. Differentiation of opinion in this context aggravated the complexities
towards taking the decisions towards implementing the software. This was mostly the case
with the Asian subsidiaries. There were resistances regarding voicing out the opinions. Here,
unwillingness reflected the approach of the employees towards critiquing the exposed
performance. Considering the support measurement system in the process of evaluating
seemed to be a rational approach in terms of judging the satisfaction. As opined by Bianchi,
(2016), this consideration reflects the authenticity and fairness, which is needed in the
process of preparing the reports. Improper information and critiquing led to the
disappointment of the managers, delaying the approvals. The Headquarters claimed that the
staffs were lackadaisical in terms of adhering to the new performance management
strategies. Apart from this, there were inadequate data regarding the feedback systems and
satisfaction survey results, which aggravated the complexities towards deducing the
conclusions.
The conflicts degrade the strategic purpose with which the performance management
strategies were formulated in the workplace of KiwiJewel. Countering this, it can be said that
consciousness towards the preservation of culture seemed to be an obstacle in the process
of implementing the new performance management based pay system. This issue
compelled the ASEAN subsidiaries to encounter critical issues in their wages. Moreover,
Bititci, Cocca and Ates, (2016) is of the view that the financial pressures in the cost level of
Oceania was a major obstacle towards retaining the existing revenues. This issue reflected
the approach of comparison in terms of measuring the performance of the employees.
Higher wage level for the employees aggravates the complexities in the production of the
jewelleries at competitive prices.
The economic crisis resulted in the shift of focus in the considerations for the director.
Acquiring new employees and integrating them into the company was also an issue in terms
of diversifying the processes. As a matter of specification, the focus was only on hiring the
local managers for providing communication training to the employees. The intention in this
case was averting communication problems. This intention can be contradicted with the
aspect of resistances and unwillingness towards providing critiques towards the performance
exposed. Variation in the performance management strategies represents the lack of
stability which indicates difficulty in deducing conclusions regarding complying with the
performance management strategies (Schleicher et al., 2018).

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One of the recommendations proposed in this context was global performance based
pay system. The plans stated that implementation of this system would make seniority based
system and fixed salary obsolete. In this context, the focus would be on the enhancement of
the unity and coordination among the team members. The goal was to upgrade the
workforce development. The parameters to be focused in this context was education and
competency development, where the local managers are entrusted with the responsibility to
catering to the experimentations with the skill mix of the employees by involving them into
wide ranging activities and processes. Continuous improvement strategies, accompanied
with product diversification in the training courses would be effective for seeking an insight
into the educational opportunities for ensuring the professional development of the
candidates. Acquisition of the modern software would be effective in terms of tracking and
recording the latest trends and designs. As per the propositions of Audenaert et al., (2019),
this approach would be effective for aligning the performance with the latest trends, which
would be fruitful for achieving higher competitive advantage over the contemporary brands.
Maintenance of the excel sheets would be effective for preparing the reports. However, the
HR needs to indulge in meeting with the management, which would be effective for mapping
the extent to which they are progressing towards achieving the identified milestones. These
meetings would also be an effective source for making plans to introduce quality rewards
and recognition schemes for the employees. Theoretical considerations in this case would
be effective for ensuring whether the performance is managed according to the needs of the
employees.
Preservation of the cultural values in managing the performance is effective in terms
of achieving desirable outcomes. “Consideration towards each other” indicates the mutual
understanding among the team members, which enhances the unity and coordination
needed for completing the operations (Eaidgah et al., 2016). Consciousness in this direction
reflects the polycentric approach towards empowering the parent as well as the host country
nationals in terms of professionalism. “Enjoy being together” reflects the satisfaction, which
indicates higher score in the satisfaction survey. However, contradiction can be established
towards the resistances towards change, which results in the attachment of the low scores
for satisfaction. “Sharing the mixture of pride” contradicts the aspect of biases, which can
lead to the conflicts, discriminations, harassments, degrading the standards of the workplace
culture. The aspect of sharing relates to the group discussions and projects, which would
result in knowledge transfer, reducing the inadequacies in the skills, competencies and
abilities.
Other recommendation relates to the collection of elaborate data regarding the 180
degree performance management feedback system and the job satisfaction survey. For this,

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the research strategy needs to be accompanied with the goal setting theory, which would
add value to the strategic management of KiwiJewel. Richards et al., (2019) is of the view
that trainings can be provided to the staffs for enhancing their awareness about filling the
excel sheets for tracking the performance of the employees. Even the sheets of the survey
can be produced in excel. This approach would be effective for embracing innovation into
the practices through digitalization. Incorporation of security cookies and policies would be
effective for enhancing the security, privacy and confidentiality in the information shared by
the respondents. The guidelines and framework needs to revised in the form of meetings,
which can be effective in terms of upgrading the standards of the operations. Mention can be
made of the social media marketing, which would be effective for enhancing the trafficking of
audience towards the brand image, KiwiJewel.
Smith and Bititci, (2017) is of the view that Ethical consent is vital in terms of
achieving trust loyalty and dependence from the clients and customers. Prior to the process
of collecting the feedbacks related to the performance management, ethical consent forms
can be circulated to the samples, which would enhance the awareness about their consent
towards involving in the survey process. Consciousness in this direction is effective for
enhancing the workplace culture of KiwiJewel. Glas, Henne and Essig, (2018) states that
this consent also needs to be accompanied with the assurance that the response would be
used solely for the purpose of researching and not commercialisation. Continuous learning
systems can be adopted in terms of polishing the skills, abilities and competencies of the
employees. Revising the recruitment and selection policies would be a polycentric approach
towards globalizing the operations through the means of outsourcing and offshoring
practices. Formal training would be assistance in terms of concretizing the experience of the
candidates towards performing the allocated duties and responsibilities. On the other hand,
informal training would be effective for enhancing the stability in the relationship with the
employees (Pavlov et al., 2017).

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Answer to Question 3.
Performance based pay system can be posed in dire opposition with the structured
nature of the salary. Rather the focus is upon assigning salary on the basis of the
performance of the employees thereby granting them due recognition in respect to their
contribution in their respective field. In the year 2008, the company has launched a new age
system on the basis of the performance of the employees. Such steps were being taken by
the company keeping in consideration the international pay standards (Wilson, 2016). The
measures taken by the company to increase the outsourcing of the products along with the
production offshoring required the organization to establish competitive pricing. The
economic crisis on a global level has urged the company to bring about a shift in its focus in
terms of the HRM. Initial attention of the company was toward the attracting the employees
from the international business scenario as well as take steps towards assuring their
development. However, the first step was towards integrating the employees acquired
through the international market within the framework of the company (Salman, 2015).
New Zealand Market
Cultural aspect
1. In terms of the framework of the Hofstede model in the culture of New Zealand, it can
be said that the power distance between the hierarchical, positions are less and the
individualism is given priority. In order to establish the framework of the performance
based pay, the lack power distance might facilitate the establishment of the new pay
structure.
2. However, the long-term orientation of the organization is relatively low with similarly
less score in terms of uncertainty avoidance. It can be said that by the fact that the
organization is low in terms of the long-term orientation, the establishment of the
performance based pay structure would enhance the disparity in the organization. As
such the establishment of the performance based pay structure would allow the
organization to attract the employees initially but their collective development would
be hampered in the long run (Salman, 2015).
Institutional aspect
1. In terms of the bias as it is present in the institutional aspect of the country it can be
said that the evident result of the performance based pay is potential to lead to the
bias as there is disruption of the equity in pay structure. As such the reading can be
drawn from the lower score of the uncertainty avoidance that there would a be lack of

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the intervention from Kiwijewel it can be expected that there might be certain
difficulties in terms of achieving the desired.
2. Germany
Cultural aspect
1. The attributes of the individualism is high in Germany, which is suggestive of the
fact that individual development on prioritized more than the collective
development. The benefits of the performance-based pay would erase the
system of a fixed pay on the basis of the seniority based system. This is reflective
in the lesser amount of power distance.
2. The high long-term orientation of the organization should be considered while
bringing about the performance-based pay in the organizational system. The loop
holes of the system should be modified the chances of potential conflicts and
take into consideration the performance management in order to mitigate the
uncertainties that might arise (Schinzel, 2015).
Institutional aspect
1. The decentralized nature of the German organization is mostly dominated by
those belonging to the middle class. As such, the nature of the institutional
attributes would facilitate the communication of the pay related changes that
would enhance the application of the newer system in the organization. The
communication present in the institution are direct in nature and demand
participation. The discomfort towards the control of an individual and
leadership based on the on expertise is appointed. Such a system is capable
of facilitating the implementation of performance-based pay.
China
Cultural aspect
1. Lesser amount of uncertainty avoidance is suggestive of the fact that the urge to
accumulate the truth and the attribute is bound to the urge of the society to
abound to the societal rules rather than the legal system, As such the legal
intervention within the disparity is culturally negated (Buckley, Burton & Mirza,
2016).
2. The high long term orientation is suggestive of the fact that the cultural scenario
does not boost the short term goals. As such the performance management and
the related factors needs to be scrutinized by keeping the wider scenario in
concern. As such, the mistakes of evaluating the performance of the employees

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need to be minimized in order to get rid of the bias. In order to achieve the long
term goals the objectives and the goals that should be achieved by the
employees need to mentioned with distinction (Hur, Kang, & Kim, 2015).
Institutional Aspect
1. High power distance makes it evident that the cultural scenario of china maintains a
centralized structure and as such the attributes of favoritism is bound to occur in the
scenario. As such the bias is bound to occur and thereby inhibit the functioning and
the implication of the performance based pay as desired by the organization.
The organization in concern Kiwijewel has experienced the proposal of the
performance-based pay on a global scale. Such mode of salary accumulation has been
noted under the compensation and benefits plan (Selviaridis & Wynstra, 2015). The
system tend to discard the existing model of the seniority-based pay following a
structured salary. As such, the future endeavor of the company was directed towards
focusing on the cooperation between the employees and the managerial system (Lin, Li
& Hou, 2015). It also focused towards achieving a global betterment of the relationship
between the employee and the managers (He, Long & Kuvaas, 2016). In order to
enhance the performance the managers and the team of HR has come with initiatives
that would allow the organization to bring about different skill based programs in the
scenario and develop competencies program in order to achieve the same. Such skills
would also enable the organization to develop the values as well as the competencies of
the employees with the changing environment as they are seeking to expand in the
worldwide market. The company has also sought to bring about the system in order to
measure the support as well as conduct surveys on an annual basis in order to count the
satisfaction of the employees in their respective jobs (Cummings, Bridgman & Brown,
2016).
These are the initiatives that the organization needs to continue in their newly
developed business system as well as in the countries where they are seeking to expand
with their full potentials.
Answer to Question 4.
The concern of the section is to critically evaluate the changes that should be brought
about in the managerial scenario as the organization is seeking to establish their venture in
the global market scenario. As such, the section would try to excavate the philosophies that
the organization would require to take into consideration the pay system that would be based

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on the performance. The mode of implementation of a change model that would be suitable
for the organization would also be suggested in due course (Hossan, 2015).
The assumption of the organizational changes need to take into consideration the
emergent change. The suggestion of the approach moves along the line that he changes as
implemented in the organizational scenario are not linear in structure. The process of
change is not isolated from the other parts of the implementation of the model rather it is
conjoined with the other modes of operation present in the organization. The cumulative
process of the changes is therefore unpredictable in nature, which the organization need to
pass through in order to accumulate themselves within those changes. According to the
words of the critics the implementation of the emergent model is suitable for the organization
as they sought to bring about changes in the drastic organizational scenario (Wojciechowski,
Pearsall, Murphy & French, 2016).
The challenges that the organization might face in its diversification venture in the
countries of New Zealand, Germany and china. The crucial factor, which is predominant in
the scenario of implementing the changes involves the primary risk of the implementation of
the performance based pay scenario. The structure of the performance based is suggestive
of the fact that the primacy would be ascribed to the performance over the seniority of the
employee. As such, there are potential chances of the disruption of the implementation of
the performance-based pay. It is potential to give rise to the disparities between the
employees giving rise to bias and the chances of the conflicts between the yardsticks of
mapping the level of the performance is also very crucial. The performance based pay run to
the risk of being favored by favoritism where a particular employee gets favored more than
another employee. As such the chances of maintain equity in the payment scenario is also
high. Bias is rampant in the scenario and requires the proper implementation of the proper
framework in order to bring about desired changes avoiding the factors of disruption (Bakari,
Hunjra & Niazi, 2017).
In terms of New Zealand, the organization might face certain complexities from the
cultural scenario where the power distance or the hierarchical order is given lesser
preferences. As such, the nature of the structure makes it difficult to implement the change
that might bring about disparity in the scenario. The lower ranking of the country in terms of
long-term orientation also demands a change with the organizational framework as they
need to thrive with the changes present in the scenario. The newly developed organizational
structure is more likely to face the factors of bias and conflicts and the crisis that is potential
enough to receive its shape during the implementation of the changes invites the aspect of
uncertainty avoidance in order to mitigate the crisis (Rosenbaum, More & Steane, 2018). As

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it has been suggested in the course of the discussion of the emergent change that the
changes are disruptive in nature and is capable of giving rise to the crucial factors of
uncertainties. In case of Germany the low count of the power distance makes the
decentralized structure of the organization clear. As such the implication of the changes can
be noted in the scenario as the implementation of the performance based payment is
capable of giving rise to resistance from a certain section of the employees who might not be
content with the decision. The lower score of China in terms of the uncertainty avoidance
also reinforces the demand for the implementation of the order in the structure needed to
bring about the desired changes. Therefore the cultural and the institutional scenario has
made it explicit that the organizational structure need to bring about certain measures in
order to mitigate the challenges that is inevitable in the working scenario (Endrejat,
Baumgarten & Kauffeld, 2017).
Keeping in concern the model that would be required to implement the plan of the
organization to implement the new structure of payment based on the quality and the nature
of the performance is the one proposed by Lewin, popularly known by the name of the Lewin
three step model. The first step as it has been proposed by Lewin in his theory includes the
one of the Unfreezing. The contribution of the step is marked by the step where it is urged
that the initial attachment of the stakeholders concerned with the existing system needs to
be removed from the scenario. This can be achieved by imparting the message and the
ideas behind bringing about the change. This requires communication on the part of the
managers to link the stakeholders, in this case the employee with the reason behind making
the change. The factor in the case of Kiwijewel is to attract the potential employees in the
foreign market. Even Lewin is of the opinion that the implication of the measure is not devoid
of disparity. The problems would be multidimensional in nature and as a resultant fact, it
would involve differential factors those are crucial to the changes happening in a non-linear
way. As such the organization get involved in the psychological dynamic process of the
changes involved (Barrow & Toney-Butler, 2019). In the year 1996 Schein had developed
the process in respect to the attribute of unfreezing, categorizing them on the basis of three
process. The first step that involves in unfreezing is about creating a disconfirmation of the
validity as ascribed to the status quo, followed by the aspects of the guilt and the anxiety
related to the survival in the changing environment (Luiking et al., 2017). The next step that
is involved is the one of moving, where the motivation to learn becomes a necessities
without directing the course of the learning. In the process the people involved in the
learning acquire new structure in order to consolidate with the learning. The next step that is
involved in the discussion of the model of Lewin is the one of refreezing. The step hints upon
the method of moving on once the portion of learning is achieved. The importance of the