Human Resource Management Report: KiwiFurniture Case Study

This report provides a comprehensive analysis of Human Resource Management (HRM) principles and their application in an international context. It begins with an examination of the Ulrich Model, exploring its impact on compensation, performance, and talent management within organizations. The report then delves into the inclusive and exclusive models of HRM, comparing their approaches to compensation, performance management, and talent strategies. Furthermore, the report explores the concepts of 'best fit' and 'best practices' in HRM, highlighting the importance of aligning HR strategies with overall business goals. A significant portion of the report is dedicated to analyzing KiwiFurniture's internationalization strategy, specifically examining the roles of localization and standardization. The analysis extends to Perlmutter's approach to multinational corporations, focusing on KiwiFurniture's polycentric approach. Finally, the report assesses the quality approach in HRM and its relevance to KiwiFurniture, emphasizing customer service and employee dedication to excellence. The report draws on various HRM models and practices to provide a holistic understanding of effective HRM in a globalized business environment.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author note

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Table of Contents
Answer to Question 1.......................................................................................2
Answer to Question 2.......................................................................................7
Answer to Question 3.....................................................................................11
Answer to Question 4.....................................................................................13
References.....................................................................................................17

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Answer to Question 1
1.1 Ulrich Model
The model helps in providing platform to deliver the different promises. The
respective model helped in shaping different functions in international companies
with the help of clear indications wherein it helps the organization in understanding
the future priorities. During globalization, the model is helpful in delivering the
organizational excellence in an effective manner. The HR department helps the
organization in achieving the different goals in an effectual manner. The HR is able to
tackle different kind of contributions towards the expertises such as becoming partner
and helps in effectively performing the tasks. The HR is able to tackle the issues that
is strategic in nature and it helps in supporting the financial goals (Wilton, 2016).
Compensation under Ulrich Model is wherein benefits and compensation are
aligned closely with other functions of HR such as selection, recruitment and training
of employees. The employees who are valued in the organization share their different
ideas and work hard in order to achieve goals. The employees are offered with
different opportunities for the growth both personally and professionally (Sparrow,
Brewster & Chung, 2016).
Performance Management under Ulrich Model is wherein HR needs to train the
line managers for achieving high morale among employees. This is accomplished
with the help of tools such as written reports and surveys of employees. It helps in
emphasizing on educating the different managers about the reasons of low employee
morale. It helps in increasing the efficiency and performance of the organization
(Matos & Silvestre, 2013).
Talent Management under Ulrich Model is wherein companies require individuals
who understand the business along with different theories and practices. There are
times when such individuals are present in organization and additional training can
be performed in an effectual manner. This will help and it will be beneficial for the
company in the long-run (Matos & Silvestre, 2013).
Inclusive and Exclusive
The inclusive and exclusive model of HRM is the important approach to the
international talent management by the way of recruiting individuals to the skills.

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For the exclusive approach, the talent is only restricted to the group of professionals
that is selected in nature. The nature of the particular procedure is exclusive and it
targets a particular group of individuals that had passed through the selection that is
differentiated in nature for identification of the talent as there are well-differentiated
programs of talent management that is advanced in nature and they are in depth as
well. This kind of group belongs to higher team of managers as they have high
leadership skills along with capacity to manage their staffs that has not yet got into
higher level of management in organizations (Chelladurai & Kerwin, 2017).
Compensation under Exclusive/Inclusive Model
The inclusive approach related to compensation is best fit for the different
organizations as the main aim is to foster the different employees well being and
prioritising the different cohesion of workforce over competition. With respect to
gender and race, the salaries that are provided to employees are on lower side with
equal opportunities for promotion. On the other hand, under exclusive approach the
compensation is excellent fit for different kind of organizations wherein the
employees are rewarded for the exceptional performance and they accept unequal
benefit allocation as well. High amount of salaries are offered in an effective manner
such as expatriates that helps in contributing towards the success of the
organization.
Performance management under Exclusive/Inclusive Model
Performance management under the inclusive approach includes wherein the
individuals are heard, seen and engages them towards the achievement of
organization. The performance appraisal is formally adopted in order to create room
for different personal strengths, discussion along with achievements. Inclusive
performance management is efficient in providing employees some ways in order to
adjust the jobs, as this will give them opportunity in order to highlight their strengths.
The organizations that are following such approach gains better performance. On the
other hand, the companies that are following exclusive approach display the different
employees who are having high kind of performance. They work as individuals and
they are best employees generating income in a significant manner and are happily
engaged.
Talent Management under Inclusive/Exclusive model

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Talent management is effective in nature when it is aligned with culture of the
different organizations. Inclusive talent management is grounded under assumption
wherein they generate valuable talent and productivity is huge in nature. It helps in
bringing the best from the employees and all employees perform their best in
achieving the goals. The organizations who implement exclusive approach has to
ensure that the company should not violate any written agreements for employees in
form of rewards along with benefits. It helps in providing opportunities by fostering
the level of motivation in them.
Best Fit/Best Practices
The term best practices refer to the execution of different set of methods during the
process of production and this helps in adding value to the final results.
This best practice is applicable in area of international HRM wherein the different
tools are developed after analysis that is critical in nature of the different processes
and is combined with routine of continuous improvement with elimination of different
tools that is not required and improving the ones that will be best fit for the
companies.
The Pfeffer model is the good example of conjoint. This particular model includes
seven HR practices that include security of job, selective kind of hiring, teams that
are self-managed, proper training along with reduction of differentials in status and
sharing of important information.
The different best practices help in gaining competitive advantage by refining the
performance of the organization. Therefore, it can be concluded that the best practice
is the best kind of model to base the performance management in order to apply
different measurements and this will support the employees in achieving best results.
The same kind of approach is used for the talent management and it is seen that
when the company uses the best practices, it will attract the entire labour market
along with best professionals will be invited to their business. The different training
practices will help in maintaining high quality of the work as well in the organizations.
Therefore, the different compensation practices that are best in nature will help in
reflecting in better kind of performance. The area of compensation is strategic and it
requires adopting different kind of practices that will reflect psychological effect.
Furthermore, there is no point in generating extra cost for organization, as this will
not help in harvest any kind of good result. The result has to be in favour of the

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aspect of the organization. The mentality of the employees is required to be wherein
they must feel that they are being paid for the efforts that have been provided by
them for the success of the organizations.
Best Fit
The strategy is linked with different kind of practices and the different information that
has been mentioned above requires alignment of high level between the strategy of
organization and Human Resource area. Both of them have to be designed in such a
manner that will help in supporting the corporate strategy (Steffen et al., 2015).
With alignment of the strategy of organization with the company is essential in
nature, as the different actions that have been taken will involve all employees. In the
context of international organizations, the different concepts have become significant
in nature and the different further adjustments become significant in nature as well.
Therefore, it can be seen that the model is linked closely with practices of HR along
with individual and organizational performance of every employees.
1.2 Analysis of internationalisation of strategy of HRM and pathway to global
status carried out by KiwiFurniture with reference to the relevant and current
HRM practices and models-
a) Localisation and Standardization
Standardization is one of the strategies of human resource management where the
different multinational companies use the structure that is standard in nature. In this,
the different policies and practices are transferred and applied in a meticulous
manner among different subsidiaries. It helps in inclusion of exportation of different
methods along with procedures that will ensure consistency in the business that is
international in nature and work in a same manner in different countries (Wilton,
2016).
Furthermore, localization is defined as the concept that is completely opposite of the
globalization wherein the different companies become more responsive to different
demands and national differences (Matos & Silvestre, 2013).
While discussing about the compensation of international companies, scenario of
inequity of standards of compensation by location is essential to evade the
dissatisfaction that is global in nature. When an individual is working for international
group, the different employees do not feel that they are compensated in a different

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manner unlike other companies in different locations, as this will cause dissatisfaction
(Sparrow, Brewster & Chung, 2016).
b) Perlmutter's approach
The different MNCs face different kind of crisis while appointing key position abroad.
The approach helps in developing orientation of staff as ethnocentric, polycentric and
geocentric that will help MNCs may chose for internationalization process.
KiwiFurniture followed the approach that is polycentric in nature as the different
managerial positions for recruitment, selection and development of the different
employees. The HR worked with overall values and policies but in conjoint with the
different local managers.
The manufacturing structure of the respective organization named KiwiFurniture is
globalized in nature and branches count with managers of local group are
responsible largely for applying the strategies in a local manner. These are the
different plans that are developed as well as shared by local team of management
and it cooperates with strategic development
However, robustness of ideas that is evaluated alongside the policy of KiwiFurniture
as the different strategies that is offered needs to be associated with central
institutional system. Similarly, this is applicable to the framework of human resources
as the main aim will be standardization of plan and it will be evaluated in best kind of
practices and it has to be aligned with different organizational strategies.
Therefore, the HRM models that support strongly the visions of KiwiFurniture are the
best practices/fit along with localization and standardization. In connection to
localization, the role of the different local managers is providing knowledge in regards
to the elements of environment with the presenting strategies of the managers. This
will be shaped in accordance with the customs, domestic habits and culture.
While implementation of new payment system that is based on performance is the
model that is coherently, base the decision-making on equity theory. The particular
approach helps in application of fair treatment and this helps in fair treatment and
motivates the different individuals in the organization. The argument is based on
different proportion of results along with inputs. In case of KiwiFurniture, the different
contributions will be workforce and this would result in performance is proportional to
the payment according to the implementation of new system.

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Answer to Question 2
2.1
Quality Approach
The approach is widely used in different public sector enterprises and the strategy of
control of quality in manufacturing industry. The product quality is measured in terms
with the conformance and specifications in order to check whether the product is
meeting the quality standards. It is customer service oriented approach as well used
by different 5 star hotels in order to prevent any such kind of error. The employees
must be dedicated to the excellence commitment, as this will help the company to
lead in an effective manner.
KiwiFurniture follows the Quality approach right from starting as it is becoming well
recognized in the international market by staying loyal to the customers. The main
target of KiwiFurniture is to stay loyal to the different values of the firm and this will
help them in receiving recognition in the market. However, the different shop owners
along with brand ambassadors of KiwiFurniture go through the test of quality prior to
selling different products and maintaining the different international standards.
Results Approach
The results approach helps in focusing on the managing different objectives,
measuring job results and workgroup. This approach helps in assuming that
subjectivity can be eliminated from process of measurement and results are indicator
of the contributions of employees towards the achievement of objectives of the
organizations. This strategy is one of the coherent strategies for different businesses
and it is same for KiwiFurniture (Mackelprang & Salsgiver, 2016). The organization
that works with entire market has high rank of eminence and recognition in the entire
worldwide market. Finally, the different qualitative measures are useful in evaluating
performance management, as the different figures will help in setting up the
business. Strategic equivalence applies to the novel system of pay in the respective
organization and it requests vigorous system of planning that encompasses aspects
of performance management system that is clear and productive in nature (Shen &
Benson, 2016).
Validity is implied in performance management system that is planned by
KiwiFurniture to adopt and it helps in measuring the performance. All the employees
need to work in an effectual manner, as this will help in achieving best results that will

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be reflected on the wages. The measurement evaluation of performance and pay of
180-degree software has to be unbiased in nature, as this will produce results that
are valid in nature.
The principle of reliability in KiwiFurniture helps in implying reckonable
consequences, as they are consistent than the biased kind of assessments. The
different worldwide results are not the best basis in order to understand the
performance of individuals, as there may be extensive and huge range of
discrepancy among different worldwide branches of the KiwiFurniture.
The principle of acceptability is reflected in response of different employees to
system of payment that is new in nature. There can be chance that a small proportion
of staffs that would reject implementation of payment system that is global
performance based.
The specificity utilizes the different measurable numbers on evaluation of
performance and is feasible in nature for KiwiFurniture. In the process of
incorporating change, which is from fixed pay to the performance management, it
helps in providing the information that is specific in nature. There is different kind of
education provided to the employees relating to changes and this will help in
reducing the psychological impacts of implementation of the payment system that is
global in nature will bring in the company (Stone et al., 2015).
For example- KiwiFurniture followed the approach as the organization integrated the
performance based pay system after the economic crisis in 2008. The company
needs to ensure that the managers are congruent with employees in achieving the
different goals. The other reason is that the respective company sell their products in
ASEAN along with China as well. However, performance appraisal is the part of the
system that will help the employees in performing their job duties in an effective
manner. The main idea is to be more competent and efficient in comparison to other
workforces.
2.2
There are different kinds of recommendations for improving the current performance
management program in the case of KiwiFurniture and it is outlined as follows:
1. Application of 360 degree rating as the evaluation tool

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This particular tool helps in assessing the organizational environment level and this
will help in bringing excellent results if trained employees apply the same. The
director of organization along with staffs could help in contributing for process by
adding the employees’ awareness with power of influence as this helps in preserving
the image of the colleagues if significant in nature. In regards to the confidentiality,
the data will be addressed in such a manner that the data has to be kept secretive in
nature and this helps in improving the environment of organization in order to
increase the productivity along with performance of employees in order to increase
the competitiveness.
a) Strategic Congruence is the approach wherein the role of jobs must watch the
different strategic goals along with culture of the organization. The two major level of
congruence are micro and macro congruence between internal and external structure
of the organization. KiwiFurniture needs to maintain along with enhance the level of
focus for growth along with expansion.
b) Validity helps in assessing the relevant aspects of the performance of the jobs
and the major aspects include the job behaviour and results. KiwiFurniture requires
to follow the same as it is required in different job roles. The sales individuals need to
focus on the approach, as right kind of attitude is required to be provided by the
employees towards the customers.
c) Reliability is the consistency and the different changes are expected in
performance in an effective manner. The high degree of consistency is essential in
nature as this helps in evaluating the performance of the subordinates. The superiors
of KiwiFurniture has to be more consistent in nature in sharing the reports of
progress and HR staff needs to monitor the performance in regular time frame and
the feedback has to be collected accordingly.
d) Specificity is the guidance to the employees in explanatory fashion relating to the
expectations from the job and they help in achieving the goals. In order to be more
specific on the performance of employees, it helps in providing effectiveness and
provide powerful feedback.

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This will be the final kind of recommendation as the integration of the performance
related pay system requires sales targets. Selling the furniture’ of high quality
requires strategies of sales to handle different kind of customers. The target of the
different sale staffs has to be justified in nature as this will help the employees in
performing well.
2. Elaboration of indicator of measurable activity with energy consumption and
balance time for employees
The proper ranking will help in identifying the performance of different employees as
per the emotional and financial awards that includes the stay with family and friends
at beautiful place and get involved with different pleasant activities. It helps in
creating environment of justice along with healthy competitiveness wherein the
different workers endeavour to be amongst best placed as well as gain recognition
for themselves. In both of these situations, family and work balance is essential in
nature in order to reduce the impact of routine as imbalance leads to relocation of the
different staffs. The different awards that will be provided to employees are based on
their luck and not on the performance. The performance of the employees will have
no influence on awards and in such cases; any of the staffs can be promoted to
sense of justice within the different staffs.
3. Creation of training program on leadership focused on equalizing ability of
staffs in performance management
A feeling of trust is implemented within different employees when the employees
perceive that leaders of company act in uniform manner. However, the employees
would prefer working on different teams as their leaders are independently working
and operating. There are employees who have started believing that they are not
working in correct place as there is lack of common sense and managerial practices
and this includes drop in the performance.
The training program of leadership helps in including benchmark that is technical of
area, group along with brainstorming with systematic formalization of different ideas
for evaluation in depth. Finally, this will include psychological and technical aspects
of the leadership that will be achieved with guidance of expert with development of
performance management practices as this can be used in uniform manner.

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Answer to Question 3
In order to implement different global payment system that is based on performance
in major markets in New Zealand, France and Japan, KiwiFurniture needs to
consider cultural and institutional aspects:
Part 1: Two cultural aspects wherein KiwiFurniture has to consider before
implementing in France, Japan and NZ
a) Power Distance- this dimension helps in reflecting to understand which countries
with high power distance are characterized in an effective manner by hierarchically
structured society and lower power distance helps in analyzing the standard of
equality for all individuals
KiwiFurniture in NZ has to consult with employees as well as senior managers before
integration of the performance management as per Hofstede; NZ is nation with low
power distance. Therefore, before implementation of performance pay system, the
company requires to follow the information in direct and informal manner failing which
this will lead to integration system that is challenging in nature. However, Japanese
are conscious in nature relating to hierarchical position and not like other Asian
countries. France is moderately high in the power distance. Therefore, KiwiFurniture
needs to accept that there is high level of inequality and inaccessibility between the
different goals that is accepted. The issue can be resolved in an effective manner by
letting proper flow of ambassadors and senior managers as per the diversification of
the roles of the individuals’ position.
b) Uncertainty Avoidance- this dimension deals with fact that future cannot be
predicted and it helps in showing extent wherein members of different culture feel
threatened in nature of different kind of situations that is unknown in nature and the
actions need to avoid such circumstances.