International Human Resource Management at Mallika Food Enterprises

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This report provides an in-depth analysis of the international human resource management (IHRM) strategies employed by Mallika Food Enterprises as it expands its operations from a national market in Sri Lanka to multiple international locations including Dubai, Ankara, Manila, and Mumbai. The report begins with an executive summary, followed by an introduction to the company and a discussion of its similarities to multinational corporations (MNCs). It then explores the impact of globalization and regionalization on the company's HR practices in each international location, referencing the convergence theory and Hofstede's cultural dimensions model. The report examines specific HR functions such as training and development, and recruitment and selection. The report concludes with recommendations for an effective HR management strategy for Mallika Food Enterprises, highlighting key considerations for managing a global workforce. The assignment offers valuable insights into the complexities of IHRM in a growing multinational food enterprise.
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I N T E R N A T I O N A L H U M A N R E S O U R C E
M A N A G E M E N T

(The case of Mallika Food Enterprises)

Student Name:

Student Id:

Course Id:

Tutor Name:

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EXEXUTIVE SUMMARY
This paper focusses on the international human resource management within Mallika Food

Enterprises as it moves to the international business from national market and thus the company

starts its operations in multiple nations within the Globe. (Andersen and Andersson, 2017)

In that perspective, this report has identified the characteristics of the multinational company or

MNC in lieu of the similarities and differences with Mallika Enterprises. This report also performs

a qualitative research survey as there are the variations within the regionalizing budding for MNC

which is as per the business as per the given methods within four locations, like, Dubai, Ankara,

Manila along with Mumbai. Under respect for convergence as well as the HR functions for

operating the identified countries especially for training and development along with the

recruitment and the selection are explained within this report. Finally, a conclusion is drawn on the

HR management strategy for Mallika food industry.

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TABLE OF CONTENTS
Exexutive Summary
...........................................................................................................................2
Introduction to the company
..............................................................................................................4
Mutinational Business Operation and similarities with the Mallika Food Enterprise
.......................4
Globalisation and Regionalization at each international Location
....................................................7
Operation of HR functions in selected international locations
....................................................11
Conclusion
....................................................................................................................................... 13
Reference List
.................................................................................................................................. 13
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INTRODUCTION TO THE COMPANY
Mallika Enterprises is a well-established food company operating from last three decades within

Sri Lanka. The company caters various delicious plates of the Sri Lankan food to their local

consumers. All Kind of foods are high in freshness, tastes and nutrient value. This company has

the aim to deliver the healthy foods and thus they want to cater the healthy eating habits within the

consumers as they wants to encourage them for in taking the rated calories with every food

service. Therefore, Mallika Enterprises ensures that the level of calories included in every food

contained and diet habits have been offered to the consumers as maintaining the healthy

boundaries. (Benito, 2005)

As per the operation to be success within Sri Lanka there is the rapid change for customer as

considered within the consideration of Sri Lankan market. To establish the sustainability and as

there is a high demand of healthy food and beverage consumption patterns Mallika Food Industry

are now deciding to do the business in Global platform. First they are aiming to penetrate the

market of South Asian Countries, like India, Abu Dhabi as within which they are deciding to open

their branches in Mumbai, Dubai, Manila or Ankara etc.

There is almost 150 local staff within which 50 are in high management role in this Industry. So

for the reason to shift within the International locations they have required a food number of

resource allocation. For that the management has decided to recruit the local staff from each

location. However, it has been ensured that there are few staffs from the head office will work in

other international locations.

MUTINATIONAL BUSINESS OPERATION AND

SIMILARITIES WITH THE MALLIKA FOOD ENTERPRISE

The multinational company is that one which can operate in more than one country and thus it is

seen to operate typically within the number of major global markets. There are three main

developed trading areas within the world and those are North America, the European zone as well

as the South-East Asia or in one words Australasia. There are examples of multinationals, like

McDonalds, Coca-Cola, Cummins or Cadbury Schweppes or the Cummins etc. The important

characteristics of this type or organizations is that they are found to be well established corporate

brands which are widely recognized as the best known expression within the world.( Castellani et

al., 2018)

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So, many of the multinationals can produce the global brands with the similar marketing has
mixed across the world like, the same or the similar advertising or the distribution along with the

retailing techniques as well as the promotions.

In addition with this, following are the other main criteria of the multinational companies in the

case to set up an international business strategy:

Carries a large asset base and generates a large turnover – Due to the extension of
operations in to other countries in the world, in general multinational companies poses a large

financial and non-financial asset base. This also results in a larger turnover generation. Asset bases

and turnovers of some of the well-established multinational corporations are larger than

economies of several countries. (Kline, 1985)

Carries out international operations through a network of branches – This is the best
typical criteria of the multinational company. They mainly operates through the network or

branches which are affiliated or subsidiaries to the host country for their best production and the

marketing operation.

Unity of control- Thus the process of controlling or setting up the branches in the foreign
countries, it is needed to carry out the instructions from the Head-Quarter only for those

multinational companies. In these cases, the management teams of those branches adhere to the

policy framework of Parent Corporation which ultimately established the unity of control. ( Collis,

2014)

Economic Power– There is immense rate of economic power of the multinational
company which is best way to solve any matter as occurred international situation. Economic

power keeps on growing as multinationals keep on growing through acquisitions and mergers in

different host countries.

Advanced technology In general, multinational corporations invest in and utilize
advanced technologies. For manufacturing and marketing, MNCs use technology which is capital

intensive. (Dalbehera et. al., 2017)

Professionalism of Management– In general multinational corporations employ managers
who are professionally trained thus possessing capability to handle advanced technologies, larger

fund bases as well as international business operations. (Martyn, 1970)

Aggressive Marketing and Sales Communication– Multinational companies spend large
amounts of money on advertising and sales communication as a means of securing international

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markets. In most instances this is identified as the most successful business strategy as it enables
company to sell whatever products that they produce.(Dodgson, 2018)

Quality of products
– As per the given market scenarios there is needed to give special attention
over the product quality for more marketing as well as business.

Under these criteria, Mallika Enterprises has identified every characteristic as per the applicability

to grow their business in the international market and those are as follows:

Conducts operations in other countries other than home country Mallika
Enterprises are going to decide their business to four other international locations, like

Mumbai, Dubai, Ankara or Manila along with in their home country.

Carries a large asset base and generates a large turnover– Though at present the asset
base of Mallika will be not extensive in comparison to MNCs operational at present.

However with the four international locations, Mallika enterprises are going to target to

pick up the market share with a high turnover volume under the global market. (Ellis

and Williams, 1995)

Carries out international operations through a network of branches– Mallika
Enterprise is aiming towards operating in each identified country through a chain of

branches which will be set up and operated through a franchising agreement.

Unity of control- Unity of control is mandatory for the success of MNCs. Hence with
four international operations taking off ground, Mallika Enterprises will be assigning

country managers to each location to make sure that unity of control is assured.

(Dymsza, 1971)

Economic Power– At present economic power of Mallika Enterprises is not so high,
but with small duration they will sustain their business to hold the international

economic power.

Advanced technology– At present Mallika utilizes significant level of advanced
technology, automating food production with positive anticipations of investing in

newer technologies and upgrades as required.

Professionalism of Management– Present team of managers in home country is highly
experienced, knowledgeable and possesses sound business acumen. Therefore this

company will ensure that the same level of quality of human capital can be maintained,

by recruiting professionals to maintain the same productivity. (Peng et. al., 2008)

Aggressive Marketing and Sales Communication- Company is intending to make a
heavy investment in marketing and sales communication as a means for creating

customer’s appeal and capturing the international market share.

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Quality of products– Product quality of Mallika Enterprises even at present is highly
recognized by consumers. For that reason, it is assumed that the same level of quality

can be maintained at all international locations as well. (Buckley, 2015)

Therefore, as discussed above, Mallika Enterprises have been followed more or less same

criteria of International business strategy to do business in global scenarios.

GLOBALISATION AND REGIONALIZATION AT EACH

INTERNATIONAL LOCATION

As per the extent of globalization as well as regionalization within the four identified international

locations, Mallika Enterprises are recommended to follow the convergence theory along with the

hosted’ cultural dimensions model.

As per the convergence theory, the nations are found to move to the better industrialization within

the early stages and as per this there is resemblance of social norms, technologies like the other

industrialized nation. This eventually leads towards a unified global culture provided that nothing

imped the process. (Phatak, 1974)

Thus the visibility for creating the uniform organizational culture is going to be clearer at the

context of the multinational business operations, the divergence of every international society

along with the level of the convergence within the true extent. The home country of Mallika

Enterprises will be clearer as per the organizational culture along with the operational practices

with the effective adoption as well as it will maintained through the international branches.

As per the convergence theory, the concept of “catch-up effect” is the better example of the

technology to be introduced within the nation at the time of early stages of industrialization of the

countries. In this scenario money will allowed to come in the form of the other nations for

developing along with it will take advantage for the same opportunity. As a result such nations

will become more accessible and susceptible to international markets. In other words this allows

catching –up with more advanced nations, which holds true in context of multinational business

operations as well. (Rentala et. al., 2017)

For this reason of identification of the convergence rule within every international location, it is

needed to check the nature for the national culture in line with the Hofsted’ Cultural Dimension

Model, as stated below ;( College of Business Administration at the University of Detroit Mercy,

1996)

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Sri Lanka (Home Country)
Power distance
– This determines the level to which individuals in the society accept the fact that
there are inequalities amongst people. With a high score for power distance Sri Lanka which is the

home country can be identified as a hierarchical society where everybody within society has a

place which requires no further justification. In a hierarchical society centralization is highly

popular and subordinates expect to be told what to do, which makes the society quite easy to be

adopted.

Individualism
– This refers to the level of interdependence maintained amongst societal members.
With a low individualism level, Sri Lankan can be identified as a collective culture where people

develop loyalty and adoption towards groups and group cultures and norms. (Rudolf, 2011)

Masculinity
– A society which has a high score in masculinity will be driven by compensation,
achievement and success. However Sri Lankan being a highly feminine society more focus is

given towards quality of life, and people value equality. Conflicts are resolved through

negotiations.

Uncertainty avoidance
- This refers to the extent to which members within culture feels threatened
by unknown situations thus creates means of avoiding them. With a score of 45 Sri Lanka does not

demonstrate a strong preference towards uncertainty avoidance. ( Tamer, 2009)

Long Term Orientation
- highly long term oriented societies maintain time-honored traditions and
norms whilst viewing societal changes with suspicion. With a score of 45 Sri Lanka can be

identified to be moderate in this dimension.

Indulgence
- The extent to which people try to control their desires and impulses is identified as
indulgence.

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In light of the Hofstede’s cultural dimensions mentioned above, it identifies that a measurement on
level of convergence could be arrived through , based on the score each international society

obtains in respect of power distance, masculinity/femininity and individualism/collectivism.

(Collis, 2014)

Cultural dimensions of proposed internationalization locations when compared with home country

cultural dimension scores;

Mumbai

Dubai

Ankara

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Manila
Country comparison of scores for power distance, masculinity/femininity and

individualism/collectivism

Power Distance
Masculinity/Femininity Individualism/
Collectivism

Sri Lanka
80 10 35
Mumbai
77 56 48
Dubai
90 50 25
Ankara
66 45 37
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Manila 94 64 32
As identified above, when power distance is high subordinates expect their superiors to direct

them on what to do. This creates space for senior management of the company to design and

develop organizational culture, policies and practices as required by home country, facilitating

development of a global culture in all international locations that company operates in. Thus with

higher power distance scores for all locations it could be stated that the score indicates of a high

level convergence in all international locations selected by Mallika enterprises.(Peter J Buckley,

2015)

On the other hand when considering level of masculinity it is visible compared to Sri Lanka all

other international cultures carry a comparatively higher level of masculinity which makes people

highly motivated towards achievement, recognition etc. Thus it’s likely that they take efforts

towards being recognized and approached by organizational superiors, creating sufficient grounds

to create space for favorable level of convergence and globalization.

When the level of collectivism within society is high people tend to form groups and abide by the

group norms and cultures whilst developing loyalty towards group in which they hold

membership. When considering the score obtained by four international locations for

individualism/collectivism, it’s evident that all four countries have demonstrated a score which is

below 50, indicating collectivism, which also indicates high level convergence of the selected

international locations. (Mayer and Selvarajah, 2017)

Therefore, all in all it could be stated that locations selected by Mallika Enterprises for its

internationalization efforts provides conducive grounds for convergence and globalization,

enabling Mallika to maintain unity of control, facilitating to succeed as a multinational company

with global operations and sound organizational controls.

OPERATION OF HR FUNCTIONS IN SELECTED INTERNATIONAL LOCATIONS

Power Distance
Individualism/
Collectivism

Uncertainty

Avoidance

Masculinity/

Femininity

Long Term

Orientation

Sri Lanka
80 35 45 10 45
Mumbai
77 48 40 56 51
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Dubai 90 25 80 50 -
Ankara
66 37 85 45 46
Manila
94 32 44 64 27
Many global researches have recognized that a close link exists between national culture and type

of HR practices adhered within organizations. The variety of HR practices based on the nature of

culture can be identified as below;

High Power Distance

In all internationalization locations, power distance is found to be high. Hence organizations pose

highly hierarchical organizational structures with clear distinction of authority and power levels

and distinguished reporting lines. With sound HR practices in place high power distance cultures

facilitates creation of subordinates who are loyal and highly committed towards organizational

performance. (Verbeke, 2009)

High Collectivism

All four internationalization locations can be identified as collectivism cultures. High level of

group harmony and cooperation is maintained within organizations whilst maintaining high level

conformity to societal norms and values. Further in these cultures a close bond is maintained by

workers with organization, colleagues and superiors.

High Uncertainty Avoidance

High level of uncertainty avoidance exists only in Dubai and Ankara whilst Mumbai and Manila

maintain a moderate score in respect of uncertainty avoidance.

When uncertainty avoidance is high companies follow formal procedures with the view of

minimizing unpredictability. This is further enriched by the clearly defined roles of employees

which have been entrusted based on trust and security. (Priem et. al., 2018)

Practices pertaining to training and development

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Other than Manilla, all other countries are moderate in terms of long term orientation. Hence in
most of the international locations identified above higher focused is placed on education and

training is identified as an extension of education. Entry point training programs, ongoing training

programs, development training programs and in house training are quite common in this respect.

(Rudolf Grünig, 2011)

Practices pertaining to Performance Appraisal

With high collectivism and power distance scores, conducting objective appraisals become a

challenge. Supervisors and subordinates develop and maintain a close relationship and thus

organizational loyalty is considered an important aspect in work performance.

Employee promotions are offered mostly based on seniority. Given the close relationship

maintained between subordinates and bosses, performance ratings are frequently inflated. (Miller,

1992)

CONCLUSION

Therefore, from the above discussion, it can be concluded that, Mallika Enterprises which is

known as the well-established food manufacturing company in Sri Lanka, can go with the right

movement towards its international business strategy. It is noted that the national cultural

dimensions of selected international locations have proven conducive for globalization of its

operations effectively. However, it is also noted that there are slight differences in HR practices

adhered by each country which should be brought in line once the operations are commenced,

with a centralized approach.

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Geography
, 5(2), pp.235-251.
College of Business Administration at the University of Detroit Mercy, , 1996.
Multinational
Business Review,.
s.l.:College of Business Administration at the University of Detroit Mercy, .
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