GRAB's Expansion into Brunei: An International HRM Report

This report provides a comprehensive analysis of GRAB's planned expansion into Brunei, focusing on the implementation of effective international Human Resource Management (HRM) strategies. The report begins with an overview of GRAB and the economic drivers influencing Brunei's business environment, including GDP, income, unemployment, inflation, and interest rates. A PESTLE analysis is then conducted to evaluate the political, economic, social, technological, legal, and environmental factors affecting GRAB's operations. The report then explores various HRM models, such as the Fombrun, Harvard, Guest, Warwick, and John Sorey models, to provide a theoretical framework for HRM practices. The core of the report addresses key HRM functions, including strategic HRM policies, recruitment and selection procedures, training and development measures, performance management systems, and compensation and benefits, with specific recommendations tailored to the Brunei context. Finally, the report concludes with recommendations for GRAB's board of directors, highlighting critical issues and strategies for successful global HRM implementation in Brunei, ensuring employee commitment, flexibility, quality, and strategic integration.

GRAB is expanding into
BRUNEI : A perspective of
International HRM

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Economic drivers of Brunei........................................................................................................3
Critically evaluating the international business environment in Brunei.....................................5
Human Resource Management (HRM) Models.........................................................................7
Scope and strategies of HRM....................................................................................................11
Recruitment and selection procedure .......................................................................................12
Training and development Measures........................................................................................13
Effective performance management system ............................................................................15
Compensation and benefits.......................................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

ILLUSTRATION INDEX
Illustration 1: The Fombrun Model .................................................................................................9
Illustration 2: The Harvard Model.................................................................................................11
Illustration 3: The Guest Model.....................................................................................................12
Illustration 4: The Warwick Model................................................................................................13
Illustration 5: Off Job Training......................................................................................................18

INTRODUCTION
It is very important for an organization to have a good and effective management which
can help them in enhancing their performance and also to perform well. Having a good HRM
paractices can help any organization to get the best outcome as their final result. Present report
will focus on GrabTaxi Holdings Pte. Ltd., also known as Grab, which is basically a Singapore
based technology company. Services which this organization offers includes, taxi services,
sharing rides, services like, food delivery and logistics with the help of their personal application
within Singapore and its neighbouring countries, such as, Southeast Asian nations Malaysia,
Indonesia, Philippines, Vietnam, Thailand, Myanmar and Cambodia, respectively. Its
headquarter was in Malaysia but now they have moved on to Singapore. They deliver their
services 168 cities in 8 different countries.
Past five years they have developed their business to a large extent. They have various
services which they offer to their customers, for example, GrabTaxi, GrabCar, BrabBike,
GrabFood, etc (Kei and Lam, 2017). They have 5000 employees who are working under them.
Grab is now expanding their business operations into Brunei. Present report will focus on
explaining international business environment of Brunei and will also discuss about main HRM
theories and models related to economic drivers. Further more, it discusses and evaluates about
the effectiveness of HRM strategies in achieving employee commitment, flexibility, quality and
strategic integration and analysing organisational, national and cultural specific issues that
influence the development and implementation of HRM strategy, respectively.
MAIN BODY
Economic drivers of Brunei
Economic drivers are those factors which has a huge impact on the country in terms of
their growth. This will help in increasing the economic growth which is very good an
organization to establish their business effectively (Kei and Lam, 2017). There are several
factors which can be considered as an economic driver of Brunei, such as,
 Changes in the Gross Domestic Product (GDP): This is the most important factor
which can ahve a huge impact on any country and on its economy as well. This helps in
measuring country's performance, which shows the strength of that country, respectively.
Gross domestic product or GDP is basically the total value of all the good sthat is being

produced and served to their citizens in one year. It is a monetary measure of the market.
GDP of Brunei in 2017 was calculated at around 1,212.81 crores USD. Brunei, being
dependent primarily on oil and gas productions, is
expected to experience fluctuations in the GDP growth based on oil and gas demand worldwide
(Kei and Lam, 2017).
 Impact of Income and wages: This is another factor which can have a huge impact on
the business activity of Grab. There is a huge influence of income and wages on choosing
any service. As Brunei has less population, i.e., 400,000, this can impact them a lot. This
can have a ghuge impact on their business (Cleary and Wong, 2016).
 Rate of Unemployment: Another economical factor that deserves to be analysed is
unemployment rate. Brunei is a small country which does not have potential market and
employment as well, which has increased the rate of unemployment in Brunei. Thsi can
be used as a positive factor for Grab as this will help them in recruiting more employees
for their business. Brunei managed to maintain a low level of unemployment rate, around
2.5%,
which is the lowest among the reference countries, with USA ranked highest with
about 9% in 2011 (Dumont, Shen and Deng, 2017).
 Inflation rate (Consumer Price Index-CPI): Thisis the main factor which has a huge
impact on teh business activity. Consumer Price Index (CPI) is almost negligible for
Brunei which is somehow can help Grab to successfully establish their operations in
Brunei. Thsi will help them in operating all their activities afficiently in the market and
can increase their customer and revenue as well. There is a sense of stability in the
inflation rate and it reduces the risk of increased in cost of goods sold (Tzabbar, Tzafrir
and Baruch, 2017).
 Interest Rate: This is another factors which is also considered as an economic driver.
This can also have a huge impact on the business activity. For Grab, they have to
carefully calculate before expanding their business in Brunei (Brunei - Political
background, 2013). This will ve very difficult to manage in the business if not taken
seriously.

All these above factors are key elements which has a huge role in driving the economy of
Brunei and whichGrab has to understand in order to expand their operation successfully and
effectively.
Critically evaluating the international business environment in Brunei
For Grab it is very essential to have a good knowledge of the country in which they want
to expantd their business further, i.e., Brunei. It is small country in Asia which is famour for oil.
They are highly dependent on the hydrocarbon sector, but their oil resource are giving them
enough financial support.
Pestle analysis will help them in understanding the country's economic and political
situation effectively. To evaluate the external factors for Grab they can use PESTLE analysis
which can help them to understand all the macro encironmental factors which can affect their
business effectively (Dumont, Shen and Deng, 2017). Pestle analysis is a process which helps to
study six external factors which has a huge importance in the business, i.e., political, economic,
social, technological, legal and environmental, respectively. Below is the Pestle analysis of
Brunei for Grab:
 Political Factors: For any organization it is very important to understand the political
situation of that country in whichthey want ti expand their business. Brunei has good
political backgroung which can be very helpful for Grab in expanding their business in
Brunei. Various laws are there which can induce a hug eimpact on their business
activities, such as, employment law, labour law, etc. Following all these political factor
can help Grab in establishing their operations in Brunei effectively. Other than this, it
also includes tradeing guidelines, safety regulations, employement laws, etc. which plays
an important role in running a successful business.
 Economic Factors: These factors help the organization to perform their buusiness
activity effectively by understanding the economic factors carefully. This can also assist
them in addressing all issues related to economy, such as, tax policies of Brunei, its
inflation rate, etc. Brunei has a good economic status which can be very useful for any
organization to start their business effectively. Unemployment rate and policies and
business cycle of the country also has a huge impact on the business activity (Tzabbar,

Tzafrir and Baruch, 2017). It should be very carefully managed by Gran in order to
effectively initiate their operations in Brunei.
 Social Factors: These can have a huge impact on a business if not managed properly. It
has apopulation of approximately 400,000 only. This can have a huge impact as they
have limited market potential and size as well. Brunei This is basically the behaviour of
the customers which can include, their nature towards purchasing, their demographic
areas, cultural boundation, etc. People in Brunei are very traditional when they socialize
with others, this has to be considered very varefully by them. These factors can reflect in
the business as well. Evaluating all these before starting their business is very essential
for Grab in order to reduce the impact of any negative issue. Other than this, it can also
include customer's attitude and their educational behaviour as well which can affect thier
purchasing pattern (Bîrsan, Shuleski and Cristea, 2016). Talking about language factor,
Malay is the national language of Brunei, but English is also widely used which is a
positive point.
 Technological Factors: Having a good technological support camn be very helpful for
any organization in oder to gain more opportunity from the industry. This will help in
enhancing their performance as well. Brunei does not have a good technological support
which can be a drawback for Grab in order to perform their services effectively as they
are working as a taxi services for which they need technology to run their business
(Cleary and Wong, 2016). This has to be considered very carefully.
 Legal Factors: These are the factors which is required to eun any business effectively.
This will also help in enhancing their overall performance as well. There are various legal
factors, such as, implemetation of all the laws and regulation that is related to or are
compulsory for a business to follow properly in order to operate it in legal manner. There
are no such hard rules and regulation which can create a problem for Grab to operate their
business in Brunei (Matyrko, 2017).
 Environmental Factors: These factors are also considered as an important isuues in
Brunei as well. It becomes essential for them to operate their business without harming
the nature or encironment. For thes the can implement some planning and strategies with

the help of which they can reduce or minimize this factoe effectively (Veth, and et.al.,
2017).
Human Resource Management (HRM) Models
These models help in enhancing the performance as a HR in an organization.
Implementing all the models in thhe oeganization can be very helpful in getting better outcome.
There are basically five types of models in the HRM practices, which is explained below:
 The Fombrun Model of HRM: This model was dicoverd by Fombrun, Tichy and
Devanna in 1884. It mainly focuses on four elements, for example, selection, appraisal,
development and rewards and their inter relatedness (Models of Human Resource
Management, 2017).
 The Harvard Model: It was formulated by Beer et.al. in 1984, at Harvard
University.This is considered as an important model which can be used in HRM
practices. This can include factors, like, stakeholders interests, situational factors, HRM
policy choices, HR outcomes and long term consequences (Ellmer and Reichel, 2018).
Illustration 1: The Fombrun Model
Source: (Models of Human Resource Management, 2017)

 The Guest Model: This was discovered by David Guest in 1997. This model in
evaluating six elements, such as, HR strategy and practices, HR outcomes, behavioral and
performance outcomes and finally financial outcomes. This can aklso be a great model to
implement in the practice (Donate, Peña and Sanchez de Pablo, 2016).
Illustration 2: The Harvard Model
Source: (Models of Human Resource Management, 2017)

 The Warwick Model: It was dicoverd by two reasercher named, Hendry and Pettigrew
of University of Warwick. Thismodel help sin analyzing the macro and micro
environmental forces, Business Strategy Content, HRM Context and Content,
respectively. This models assist in making connection with external and environmental
factors and explores how HRM adapts to changes in the context (Caligiuri, 2014).
Illustration 3: The Guest Model
Source: (Models of Human Resource Management, 2017)

 Model by John Sorey: This model was founded by John Sorey in 1989. This model help
in setting interrelated policies in the organization which can help them in enhancing their
performance. This model als has four elements, such as, beliefs and assumptions,
strategic qualities, role of line managers and key levers, respectively (Caligiuri, 2014).
Hofstede model
The model has six culture dimensions which are enumerated below-
Power Distance Index-
Illustration 4: The Warwick Model
Source: (Models of Human Resource Management, 2017)

The degree when individual is comfortable and influencing upwards. Furthermore,
acceptance of inequality in power distribution in society.
Individualism Versus Collectivism-
It involves how personal needs of employees are prioritised with that of organisation's
goals for meeting efficiency.
Masculinity Versus Femininity-
The masculine dominated societies have different cultures in comparison to feminine
cultures in effective manner.
Uncertainty Avoidance Index-
It involves how comfortable are people with changed way of work and whether they
prefer to know the high uncertainty avoidance systems.
Long term orientation Versus short term normative orientation-
Long term involves planning for advancement in the future and achieve goals while short
term involves focusing on present period.
Indulgence Versus Resistant-
The indulgence means enjoying life and attaining desired goals. While, resistant is
following strict norms of society.
Scope and strategies of HRM
Strategic human resource management is a process through which overall objective of
the organisation is achieved. Human resource management in order to formulate strategies
interact with other departments so that individual and business objective are acquired. GRAB in
order to expand its business have to formulate strategies so that resources are being utilised
properly. Strategic human resource management lays emphasis on implementing various policies
which assist them in expanding their business in Brunei.
Grab have to formulate different policies for human resource management in Brunei.
Polices are the rules and responsibilities which are required to hire, train and reward the
employees. Polices of strategic management contains various things such as employee
classifications, policies regarding sick leaves, holiday, overtime compensation, termination
policies, payroll deductions etc (Adler and Ghiselli, 2015). Human resource management
implement these policies so that members of the workforce have clear understanding of
functioning of the organisation in the new country. Human resource management of Grab in

order to expand their business in Brunei have to develop different strategies which assist them in
implementing different functions of human resource department. These strategies will support
Grab in attaining their long term goals.
Human resource manager in order to attain the goals of the business have to practice planning
which guide the organisation in developing a plan which assist them in functioning of various
operational activities. Human resource management have to practice different activities in order
to achieve the target goals. These practices include functions which improve the performance of
the organisation, motivation etc.
The main motive of Human resource management is to ensure that right people are
recruited for the right job. Grab in order to formulate strategies must ensure that its Human
resource department is effective in hiring the individuals so that they will work according the
objective of the firm. The scope of Human resource management is wide as it includes all
activities relating to manpower planning till the employee terminate the organisation(Key Human
Resource Management Policies & Procedures, 2018). The scope of HRM consist of
development , acquisition, retention and control of human resource in the company. Human
resource management perform all the activities which are relating to management of human
resource in the organisation. These activities include recruitment, motivation to the employees,
training and development of the workforce etc. These functions performed by HRM will assist
Grab in hiring qualified personnels for the organisation in the new country to establish its
business over there.
Grab in order to expand its business in Brunei have to understand the international market
so that they can implement their various strategies according to the market conditions.
Grab have to find out about the rules and regulations which company have to comply with for
recruitment of individuals in company. For example, compensation practices, customs and
policies regarding local and overseas employee recruitment, employee statutory benefits etc.
Grab have to understand various issues which will affect the business in international
market such as , designing organisational structure in international market according to demand
of the product, industry and size of the business. The company have to comply with different
foreign laws which influence the working of the organisation in the global market. There are
issues which company will face in Brunei which is related to cultural difference and
communication differences. Which have a great impact on the work environment order to reduce

cultural and communication differences HRM have to formulate strategies which assist the
organisation in reducing various communication and cultural barriers and encourage the team to
work together to achieve the organisation objective of the firm.
Recruitment and selection procedure
This function of HRM is related to hiring qualified personnels for the right job which
assist the organisation in increasing their market share internationally. Recruitment is a process
of finding and attracting potential resources which will work for the company's growth and
development in Brunei. This require personnels which have abilities for achieving the business
goals.
 Human resource management in order to recruit personnels in Brunei have to make
proper recruitment planning which assist human resource manager in analysing the
market on the basis of which recruitment is done so that potential candidates are attracted
towards the organisation in Brunei (Kruglanski And et.al., 2018). Recruitment planning
is done according to different post which are required in different departments of the
organisation.
 Expanding its business to Brunei Grab have to estimate different post which will be
required in the organisation to perform different activities in the company. Recruitment is
done in order to attract qualified personnels to perform various activities of the firm.
Recruitment include defining the various positions which are required to be fill. It also
includes position description which inform the candidates about the job title,
responsibilities and description. It also includes determining the best sources through
which candidates are attracted.
 Recruitment also involve appropriate process for collecting the applications form various
candidates. Grab in order to expand the business to Brunei have to make proper planning
which assist them in finding qualified candidates for performing the activities.
 The next process for hiring individual includes selection of the potential candidates in
the new market which perform their best in expanding the business in Brunei. Selection
process is done in order to perform the screening of the candidates to determine the right
people for right job. Screening is done by selecting those applicants which fulfils the
minimum requirements of the job description.

 Those candidates which have fulfilled the minimum criteria of the job description are
screen out. And after that short-listing of the candidates is done in which top 4 or 5
candidates are hired for the next process.
 Grab in order to select qualified candidates have to examine various factors which helps
in achieving the business goals. HRM of Grab have to perform accordingly so that they
hire those people which fits the job position and the company environment.
 HRM have to perform various functions for hiring local candidates for business in
Brunei. They have to understand the culture of Brunei and the public. This assist the
HRM to plan accordingly to attract candidates towards Grab.
Training and development Measures
Training is the process of enhancing the skills , capabilities of the employees in order to
increase their efficiency level which assist the organisation in achievement of the organisation.
Training and development helps in individual and organisational performance level which assist
the organisation towards growth and success.
Importance of Training and development
 Improve employee performance : Performance level of the employees is improved by
providing them proper training which help them in developing their skills and
knowledge. Training assists the employees in understanding their responsibilities and that
helps in building confidence. This confidence will increase their performance level and
thus Company will also be benefited . Grab in order to improve the performance of their
employees have to provide them training which will increase their knowledge and skills.
This support Grab in expanding their business in Brunei.
 Improve employee satisfaction and Morale : Company makes investment for providing
their employees proper training which shows that the employees are valued. Training
makes their understanding better which helps in increasing their efficiency level. Training
provides the employees with motivation and encouragement by increasing their
knowledge and skills. Grab in order to motivates its employees have to provide them
proper training.
 Addressing weaknesses : Training is provided in order to develop the weaknesses of
employees so that their performance level is increased. It also helps in improving skills

and knowledge which are required to reduce their weakness. Grab provide training to its
employees so that they can increase their knowledge and reduce their weaknesses.
Types of Training
 In-house training : It is an internal operation of an organisation where the training is
provided to the employees for improving their knowledge and skills which are required
for performing the various activities of the work. It aims at increasing their quality and
efficiency of their work. In-house training helps in saving the cost for the organisation
because this training does not require proper environment for providing training. Grab in
order to provide training to the employees for increasing their productivity in Brunei
provide training so that employees are motivated towards work. Training is required to
reduce the cultural differences affecting the work environment.
 Off Job Training : This job training is conducted at the specific location which is
allotted for training programs. The training location is located near the work place so that
employees don't have to move far away for training purpose. Off the job training is
provided for defining the job roles to their employees and various tools and techniques
required for actual work. Grab in order to provide off the job training which help in
developing the individual performance and efficiency so that cultural differences are
reduced by providing equal training to all the employees of workforce.
Illustration 5: Off Job Training
(Source: Off-the-Job Training, 2017

ASK model
The model shows that attitude/behaviour includes integrity, hard work, commitment and
other factors involved in image. Skills are also required by HRM which are also highlighted.
Effective performance management system
Performance management is related to continuous improvement of the individual and
organisation performance. Effective performance management system helps in setting individual
and team goals which are aligned to the strategic goals of the organisation. Performance
management involves the overall development of the individual such as increasing knowledge
and skills which assist the employees towards increasing their efficiency level. Grab in order to
increase its market share in Brunei have to implement performance management system which
helps in increasing the efficiency level of the employees and increasing the overall productivity
of the organisation.
Following are the key elements for successful implementation of performance management
system :
 Goal setting : Effective implementation of performance management system requires
that goals are pre determined in order to have clear understanding of the areas where they

have to focus (Miner, 2015). Goal setting helps in effectively working towards the
achievement of the objectives and thus increasing the profitability for the organisation.
Grab in order to achieve effective performance management system have to set its
business goals for which company have established its business over Brunei. This helps
in assigning duties according to the targeted goals.
 Collaboration and Communication : Performance management system is required in
order to reduce communication barriers which affect the working of the organisation.
Performance management helps in improving and communication process and
coordination among the employees which helps in reducing the cultural differences of the
employees which are relating to different background. Grab in order to expand its
business in Brunei have to ensure that proper communication process is followed in order
to have understanding of performance of the employees. Ineffective Communication
leads to reduce in the performance level and thus reduce in the profitability level. Grab in
order to have effective performance management system ensure that communication is
effectively done.
 Feedback : Performance management system provide employees with an opportunity to
increase their performance level by taking the feedback of every member of the
organisation regarding the performance level of the staff (Bryce and et.al., 2016).
Feedback assist in understanding which employee is efficiently working towards the
goals of the organisation and which is not efficiently working. This helps in providing
knowledge which employee need training and development for increasing their
performance level.
Grab have to take feedback from the member of the organisation in order to know bout their
performance and provide training according to their need to improve their knowledge and skills.
Performance Management Model
Plan-
 It includes planning for performance
 Focus on organisation's goals
Coach-
 Shaping skills for better performance
 Training and development

Evaluate-
 Assessing level of performance
 Comparing with others in a group
Reward
 Rewarding with monetary or non-monetary benefits
 Increasing employee engagement
KPI
It is useful tool for measuring quantitative performance of company how effectively it is
accomplishing set targets with ease.
Benefits of Part time
 Opened doors for new opportunities
 Increased time for other projects
Benefits of Full time
 More commitment towards work
 More productivity and efficiency
Reward Management (Total Reward Model)
The model surpasses six major components for rewarding employees and making them
engaged or retain them in organisation. It involves compensation, benefits, work-life balance,
recognition, performance management and talent development which motivates employee to
work in present organisation.
Employee Engagement (Aon Hewitt Model)
The model involves various engagement drivers such as agility, engaging leadership,
talent focus, the work and the basics which engagement outcomes and business outcomes in
effective manner. Thus, employees remain engaged in the company and stated objectives are met
by firm with ease.
Compensation and benefits
The compensation and benefits are the rewards which are achieved by the employees for
their job performance. These includes monetary and non- monetary benefits which are provided
to employees for performing effectively towards the achievement of overall objective of the firm.
Reward helps in motivating the employees to work towards the achievement of organisational

goals. Compensation and benefits are required to encourage the employees to wok effectively for
improving their performance level and productivity of the organisation. Grab in order to motivate
its employees provide them compensation and benefits to retain its employees for growing their
market in Brunei.
Reinforcement and expectancy theory of reward management : This theory of reward
system that reward -earning behaviour is repeated so that employees are motivated to work hard
for achieving more rewards(Ford, 2014). Expectancy theory defines that employees have an
understanding about the particular thing which attract reward towards them. It also focuses on
the link between reward and behaviour. This theory helps in providing the reward on the basis of
the behaviour of employees towards their work.
Grab in order retain its employees in Brunei and to increase their performance level
provide them with compensation and benefits such as bonus, promotion etc. which assist in
motivating them towards the work for improving their performance level. This will help Grab in
achieving the competitive advantage by retaining potential employees in the organisation which
leads to increase in the profitability of the Grab in Brunei.
CONCLUSION
From the above report it can be sum up that it is very important to analyze all the factors
very carefully before expanding the business to other country. As per the current report, Grab has
to be very careful before starting any implementation in Brunei. Understanding the impact of
macro environmental factors which can be analyzed with the help of Pestle analysis is also
explained in this report which will help Grab to understand the political and economic condition
of Brunei.
Further, this assessment has also explained about the different HRM practices which can
help an organization to improve their performance in the industry in order to increase their sales
abd revenue as well. There are various models, strategies and theories which can be used in
enhancing HRM practices as well, such as, The Fombrun Model of HRM, The Harvard Model,
The Guest Model, The Warwick Model and Model by John Sorey, which includes, recruitment
and selection, training and development, performance management and appraisal system, reward
system, employee engagement, etc. that is discussed in the last section of this assessment.
Recommendations

 Macro environmental factors such as PESTLE needs to be carefully analysed in effective
manner.
 HRM strategy should be implemented so that operational activities of Grab may be
perfectly handled in Brunei.
 Employee engagement needs to be applied by business in order to motivate employees by
which productive work may be accomplished.
 Rewards should be given on half-yearly basis so that business may retain top talents for
accomplishing stated objectives.
 HR should be competent enough in order to meet complex operational activities in new
place.

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