Southern Group Co. Ltd: Human Resource Plan for Globalized Business

This report presents a comprehensive human resource plan for Southern Group Co. Ltd., focusing on its global expansion strategy. It outlines the company's executive summary, introduction, and global expansion plans, emphasizing the establishment of standards, employee development, multicultural management, and global business skills. The report delves into international human resource management (IHRM) trends, including recruitment, benefits, social media, and professional development, while also addressing challenges such as change management, leadership development, and HR effectiveness. It further explores IHRM functions like recruitment and selection, training and development, and performance management, culminating in recommended approaches for successful global operations. The plan emphasizes the importance of a global mindset, career paths, and governance systems to support the company's international growth. The report provides a detailed analysis of the company's approach to global business.

UNIVERCITY OF MAHATMA GANDHI
INTERNATIONAL HUMAN RESOURCS MANAGEMENT
May 2017
SHEHAN PERERA
TEL : [phone]
ID NO: 2015/MGU/MBA/12-07

EXECUTIVE SUMMARY
Southern Group Co.Ltd. is heading their way for Globalized Business as
currently trade liberalization and technological advancements have
encouraged companies to expand internationally and trade their products
and services on a global scale. The world’s largest companies have
stretched across borders to the point where they have greater operations
and more employees in other parts of the world than in their countries of
origin.
Binding companies through infrastructure and trade links brings great
opportunities, but it also increases operational risks. Seismic events,
whether economic, political, regulatory or societal, impact the entire value
chain in developing and developed countries.
To ensure that Southern Group is heading in the correct path it is vital to
direct its employees properly. This Human Resource Plan is setup having
the said intention as the Company is now moving to its new era of
Globalized business.
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Contents
EXECUTIVE SUMMARY..................................................................................III
1 INTRODUCTION................................................................................6
2 GLOBAL EXPANSIONS PLANS OF SOUTHERN GROUP.............7
2.1 Establishment of standards for the roles......................................8
2.2 structure for developing employees in Sri Lanka.........................8
2.3 development of multicultural management skills.........................9
2.4 Improvement of global business skills........................................10
2.5 Encouraging all employees to adopt a global mind-set.............10
2.6 Global career path..........................................................................11
2.7 Strengthening human resources functions.................................11
2.8 Global human resources governance system.............................12
2.9 Global human resources meeting.................................................12
3 INTERNATIONAL HUMAN RESOURCE MANAGEMENT.............13
3.1 Trends..............................................................................................13
3.1.1 International Recruitment and Hiring...........................................14
3.1.2 Progressive Approaches to Benefits and Compensation..........15
3.1.3 Introduction of Social Media.........................................................15
3.1.4 Professional Development............................................................15
3.2 Challenges.......................................................................................16
3.2.1 Change Management......................................................................16
3.2.2 Leadership Development...............................................................16
3.2.3 HR Effectiveness Measurement....................................................17
3.3 Implications.....................................................................................18
4 IHRM FUNCTIONS...........................................................................20
4.1 Recruitment and Selection............................................................20
4.2 Training and Development............................................................21
4.3 Performance Management.............................................................23
5. RECOMMENDED APPROACHES..................................................24
6. CONCLUSION..................................................................................27
7. References........................................................................................28
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1 INTRODUCTION
Borders are no longer restrictive. Companies are not constrained by the physical
boundaries of the countries where they are located and can now choose from the best
talent available to build innovative and competitive global workforces.
Many workers in emerging countries are as skilled as those in developed countries;
women outpace men in higher education; and older workers are staying in their jobs
longer. Businesses no longer have a “typical” worker—diversity in terms of gender,
ethnicity and religion abounds within organizations.
To understand how the make-up of the global workforce has shifted and will
continue to do so, it is crucial to first explore the forces that are driving these
changes in a way of a Human Resource Plan. Expansion of transnational
companies, migration patterns and technological advances are the
characteristics of an increasingly globalized world and economic system. Of
course, with the increased diversity and internationalization of the workforce
comes the unavoidable clash between personal culture and corporate culture.
Additionally, there are new challenges associated with global operations—
including human and labour rights violations, corruption and local regulations
—that have forced Southern Group to look for new ways to manage risk while
increasing opportunity.
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2 GLOBAL EXPANSIONS PLANS OF SOUTHERN GROUP
Figure 2: Plans for Global Expansion
Southern Group’s employees around the world must always think from the
headquarters’ perspective in order to demonstrate leadership. The human
resources department uses various opportunities and tools to convey and
share with employees messages on the importance of thinking of Sri Lanka as
just one area in the world and of changing one’s mind-set to work with a global
outlook. Following expansions pertaining to Human Resources have been
adopted by the Southern Group to success in global business.
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2.1 Establishment of standards for the roles of persons sent on
assignment outside Sri Lanka
It is important to increase the number of human resources with the aptitude
for assignment outside Sri Lanka. At the same time, however, Southern
Group is endeavouring to develop local employees and create more
opportunities for their promotion. It does this by sending people on
assignments outside Sri Lanka only to perform roles that cannot be done by
local employees and by clarifying their division of roles with local employees.
Southern Group will establish a table of standards and develop a check
system to enable its employees around the world to shine by placing the right
people in the right jobs.
2.2 Establishment of a structure for developing employees in Sri Lanka
who can play an active role on the world stage
Figure 2.2: Positionning of stage based education
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Southern Group is committed to accelerating the globalization of employees
in Sri Lanka in terms of recruitment, placement, and development. At present,
Southern Group is enhancing the educational content at each stage and
deepening coordination between stages in an effort to create systematic
human resources development.
2.3 Provision of local information to persons going on assignment outside
Sri Lanka and development of multicultural management skills
Southern Group systematically provides grade-based training to persons
going on assignment outside Sri Lanka according to their mission at the
location of assignment.
It is decided to provide training for employees outside Sri Lanka:
1) Site Management Skills Training for senior management
2) Multicultural Management Skills Training
3) Assignment Location Situation
for all persons going on assignment outside Sri Lanka. Additionally, during
this year Southern Group will step up safety measures, the provision of
educational information for accompanying children, and other efforts to
strengthen on-location living support.
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2.4 Improvement of global business skills in candidates for assignments
outside Sri Lanka (registered candidates)
Southern Group is registering candidates for assignments outside Sri Lanka
more systematically than ever before and will further strengthen systematic
education, including global aptitude checks and acquisition of necessary
skills, with a view to sending candidates on assignments a few years later.
2.5 Encouraging all employees working in Sri Lanka to adopt a global
mind-set
Southern Group holds seminars to help employees working in Sri Lanka to
become more comfortable communicating in English with non-Sri Lankan
people. The goal is for all employees, whether in Sri Lanka or outside Sri
Lanka, to conduct business with global standards in mind.
In order to promote more systematic development of human resources
prepared to work outside Sri Lanka, Southern Group will continue to
implement screening and personnel development measures. This includes
checking employees for global adaptability, as well as helping them to
improve strengths and overcome weaknesses through training and to learn
the necessary skills.
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2.6 Global career path
In order to continuously develop global human resources, it is not enough to
use a direct approach from the human resources department to employees;
people who can develop global human resources must be developed and
promoted as managers so that employees can grow through their work in the
field. Accordingly, Southern Group has developed its conventional career
path into a global career path. So that employees in addition to those
involved in sales outside Sri Lanka will have even a broader perspective, the
company has enhanced personnel placement to give employees wide-
ranging experience before they become section chiefs, department
managers, and division managers. This approach will be used in future
human resources development and placement planning
2.7 Strengthening human resources functions at group companies outside
Sri Lanka
The strengthening of human resources functions is becoming an increasingly
important issue at group companies outside Sri Lanka, which are increasing
in number and growing in size rapidly around the world with the continued
expansion of Southern Group’s business outside Sri Lanka. In this
environment, Southern Group is working at enhancing human resources
functions throughout the group, ensuring that they reflect the shared
Southern Group corporate creed, by sharing its global human resources
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philosophy and know-how. This effort includes restructuring human resources
systems to make them suitable to each company, taking into consideration
each country’s values, laws, and other characteristics.
2.8 Global human resources governance system
Southern Group actively engages in exchanges of opinions on what the
Southern Group perspective should be about local problems and
circumstances. The headquarters human resource division also directly
dialogues with and provides advice on system design to members of human
resources departments at local companies.
2.9 Global human resources meeting
During this year Southern Group will hold a global human resources meeting
to foster discussion with HR managers from group companies outside Sri
Lanka. The aim is to share Southern Group’s global HR approach, ensure
further penetration of the Southern Group philosophy, and ascertain HR
issues at sites outside Sri Lanka.
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