Evaluation of Human Resource Management Strategies for KIA Motors

This report provides an evaluation of Human Resource Management (HRM) strategies for KIA Motors' operations in India. It begins with an executive summary outlining the report's objectives, which include discussing effective HRM strategies, analyzing the Indian business environment, and identifying challenges and opportunities for KIA Motors. The report delves into key HRM areas such as employee involvement, reward management, and transformational leadership, highlighting their importance in employee engagement and organizational success. It also examines the effectiveness of HRM strategies through various evaluation techniques, analyzes the differences between global HRM strategies, and discusses the importance of training and development. Furthermore, the report addresses national, cultural, and organizational issues impacting HRM, including performance management and appraisal methods. It concludes with recommendations tailored to the challenges KIA Motors may face in the Indian market.

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,

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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