Advanced HRM Case Study: Kiwi Furniture's Global Expansion Strategies

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Case Study
AI Summary
This case study examines the HRM strategies of Kiwi Furniture, a company with a long history of international operations. The analysis covers key areas such as compensation management, performance management, and employee development within a global context. The study explores the challenges and opportunities presented by internationalization, including the implementation of global pay systems and the adaptation of management policies to different cultural and institutional environments. The report includes a critical analysis of various HRM theories, like equity theory, Vroom's expectancy theory, and the EPRG model, to provide a comprehensive understanding of the company's approach. Furthermore, it offers recommendations for improving company performance and adapting to the specific cultural and economic conditions of key markets like New Zealand, France, and Japan. The case study underscores the importance of aligning HRM practices with the overall strategic goals of the organization, especially in a global setting. The case study also focuses on the strategic implications of employee development, approaches to employee development, career management and development planning systems and special issues in employee development.
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Running head: ADVANCED HUMAN RESOURCE MANAGEMENT
Advanced human resource management system
Name of the student
Name of the university
Authors note
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Executive summary
The study is related to the model, business Ideas and different frameworks related to
the human resource management policies and procedures. On the other hand the study have
also recommended about the specially implemented policies for kiwi furniture. Next the key
markets of New Zealand, France and japan have been discussed as per the global pay system.
Lastly the changed management policies have been discussed here also.
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Table of Contents
Introduction....................................................................................................................4
Discussion......................................................................................................................4
Compensation management theory of human resource.............................................4
Theory of compensating decisions.............................................................................5
Performance management theory of human resource............................................5
Critical analysis and supportive human resource theory............................................6
Equity theory of motivation.......................................................................................6
Vroom’s expectancy theory.......................................................................................7
Human capital theory.................................................................................................8
EPRG theory..............................................................................................................8
Four framework of EPRG model...............................................................................8
Performance measurement theory............................................................................11
Performance measurement strategies.......................................................................12
Recommendations....................................................................................................13
Cultural and the institutional comparison between France, New Zealand and japan
..............................................................................................................................................15
Cultural comparison between France and New Zealand......................................15
Institutional comparison for japan.......................................................................17
Economic condition in japan....................................................................................18
Conclusion....................................................................................................................22
References....................................................................................................................23
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Introduction
The above study report deals with the evaluation of the key areas related to the human
resource management model for the international areas such as the compensation,
performance management and the talent management areas. On the other hand the study also
deals with the internationalisation concept related to the kiwi furniture and the basic areas and
models applied by the company. The study also deals with the core performance management
strategies and policies and the recommendations to improve the company performance in
related to the global pay system and how the same management process could be
implemented within the company.
Discussion
Compensation management theory of human resource
In every area it can be seen that the employees get paid by the pay check in the
regular interval. Hence the pay check value differs from the various companies and areas at a
regular process. The people get paid by the work they do as well as they get to paid as of their
performance. The pay is fully influenced by the overall market research as well as the skills,
tenure and the business process. The labour force is paid by the labour union, and the social
attitudes are fully utilised to set the pay rates as per the practises and programmes to align
with the business objectives. Hence the compensation programme incorporate to the
organisational benefits outside the business organisation. Hence for an employee the
significance of the compensation management is to meet the family needs as a whole. The
compensations is very much important for the management purpose. it represents a large
amount of expenditure and in the manufacturing firms the value is paid at less than 20
percent. The same for the service industries will value at more than 80 percent. Therefore the
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compensation is an important part to consider for the business purposes. It includes attracting,
engaging and retailing purpose and motivating the same to accomplish any goals. The
compensation domain is implied in the case of economic, psychological, sociological,
political, equity and the communicational concept.
Theory of compensating decisions
A compensational programme has a number of distinct components related to it. It
includes the pay level, basic pay and the variable pay. Hence these three areas combine the
pay rate for each employee based on the cash compensation. The added benefits could be the
organisational rules which is known as the cash compensation. It provdes the figures related
to the organsatioal strategy, plan and the action. Here the variables are econmic,environmntal
and organisational. The examples of these variables could be like the economic, socio culural
and legal environments. The organisatioanal structure togetherly act as a workforce in this
case (Karami et al., 2014).
Source: created by the author
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Performance management theory of human resource
The ever increasing complexity of the business functions have led to the emergence of
the new and comprehensive management of human resource. It is a concept used in the field
of human resource management which eyes on continuous development of identification,
measurement and to set the performance standard of the organisation. However there is no
such model related to the performances measurements. The process is based on the
explanations of authors. However the performance management model is based on a cycle
which looks to implement the below objectives like performance measurement, feedback of
results, reward system etc.
Source: created by the author
However the model is based on the goal setting theory of Edwin Locke and the
expectancy theory of victor vroom.
Critical analysis and supportive human resource theory
Equity theory of motivation
The equity theory is based on the idea that the individual are been motivated by
fairness. Hence in the simple terms the theory states that the if any individual in an equity
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between themselves and other peers will be able to adjust the work they do tot make the
situation better and fair in eyes. As an example of the equity theory if an employee does the
same job as the others do. Hence they look to earn more amount of money in the process
rather than they could choose to do less amount of work and the same could create fairness in
the eyes. Hence this process could be very effective in the case of the new company who are
looking to establish motivation to the employees and to seek the best result out of them.
Vroom’s expectancy theory
Vroom’s expectancy theory have assumed that the behaviour is resulted from the
constant choices among themselves and to mention maximum pleasure and minimum pain.
Hence the employee performance is based on the individual efforts like personality, skills ,
knowledge and experience abilities. Hence these are very much important to motivate the
employees. This theory has three areas to consider namely-
Expectancy
It states that the process will lead top increase in the overall performance. These could be
like-
Having right resources.
Having proper job skills
Having the necessary support to get the job done.
Instrumentality
It is a belief to be having the right value4 to the job and the outcome is the second
level outcome. The things considered here are as follows-
Understanding the relationship with the customer and the company.
Trust in the people to take right decisions for the jobs.
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Transparency to the process.
Valence
It is the lineage to the individual lines to form the expected outcome. And if the
valence to be positive and the person must prefer the Attaining the outcome to not attaining
it. For example if someone is mainly motivated by money he or she might not value offers of
additional time off.
Human capital theory
The theory is designed as the designed as the leaders and the employees that make up
the organisational human capital are critical to success and hence the process is managed by
the organisation of human capital management departmental. The process is now commonly
referred to as the human resource department. Here the organisation could look to value the
workforce acquisition, management and optimization. The HRM department others directives
include the workforce motivation and development. The training and development. Hence the
companies could also look to increase employee motivation by this process as a whole
(Chiang et al.,2017).
EPRG theory
This theory had been developed and introduced by wind, Douglas and permutter in
the marketing operations and the company’s involvements to the process and involvement to
the environment.
Four framework of EPRG model
Ethnocentric orientation
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It refers to the process that is useful to the superiority of the home country and as well
as to cling to the international market demand. Hence the products could look to suit the taste
and preferences of the process related to the market. It refers to the product specification,
price and promotion. The company could look to apply product diversity through this process
(Brewster et al.,2016).
Regiocentric orientation
This approach is made to the framework studies the similarities and the differences in
the world to look over the operational procedures as well as to formulate the strategies as a
whole. Hence the social, cultural and the political similarities play an important role in this
respect. This process is effective to the company to define the best formative strateges.
Geometric orientation
This process of EPRG techniques is very important towards initiating the benefits
towards the benefits and differences regarding the benefits imposed there in. this process is
useful for the company to expand the business as per the geographical boundaries.
Polycentric orientation
This process is very much beneficial for the countries perspectives and consider the
same to the international market. The process is very much useful to prevail new ideas and
programmes. From the other markets.hence the same technique could be beneficial for the
kiwi furniture to step foot into the international market.
Internationalisation HRM strategy
The study deals with the linkages of the international human resource and the same
links up between the strategic management process of the MNC in the emergency in the
economic and emphasizes coordination of the congruence among the various HRM practises.
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Hence the same process is legal to add certain values based on the hypothesis of the country’s
HRM practises. Hence it can be said that the global, national and internal pressures play a
vital role regarding the key employment practises of the company. Hence the international
HRMpractises play a vital role in managing the international relationships in the market as
well as they play an effective policy towards getting the material interest actors to the others.
Source: created by the author
The kiwi furniture being one of the major known furniture company had initially used
to manufacture the furniture (Carrillo et al., 2018). However because of good quality products
and design the company had started to move towards internationalism and brought innovation
by using quality steel or plastic and synthetic materials. However the process had initiated
some major key aspects in terms of the HR perspectives (Burchfield, 2016). Hence to cope
up with the increase in demand the company had looked to focus on recruitment and selection
of specialist carpenters to meet the requirements internationally. On the other hand the
company had looked to expand the business and try to export the products over some
competitive price range. Hence the theories related to this aspect can be as follows-
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Performance measurement theory
The company have looked to improve the overall performance of the workers. Since
the company have gone global, hence it is important to take certain performance
improvement decisions for the benefits of the company. As per this model the company can-
Setting of objectives: since the company have gone international, hence it is important
to set bigger and better objectives and goals.
Measurement of performance: kiwi furniture could look to measure the overall
performance of the employees by setting the standards.
Feedback of results: the company could look to take feedback from the customers to
improve more
Rewards: good performers are been rewarded by the company (Thory, 2013)
Amendments: new and improved techniques for improvement are always welcomed
by the company.
Furthermore as per the AARRR model the kiwi furniture company can look to
indulge with more customers in the process and try to provide effective and genuine
furniture’s in order to retain more number of customers for the company. Apart from that in
this process they could look to generate more amount of revenue.
Hence it can be concluded that the all these above models are proven to be helpful for
the company at the very first hand. These applied techniques will be beneficial to provide
with more generic and effective business solutions.
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Performance measurement strategies
A measurement strategy is initially implemented as an important process to develop
the organisational strategy effectively. This involvement the identifications of the effective
critical factor which are correctly been considered to compete to the overall success. Hence
the strategic factors are correctively identified, measured and rewarded regularly the
employees are made aware of them and the same process could be motivated to achieve the
goals that could be ultimately result on the overall success policy of the company. While the
overall profitability is an actual component and there are the other short and long term goals
for the company for the growth and the performance measurement. Hence an example of the
balance scorecard process could be considered as the performance measurement process to
define the multiple perspectives. Hence the overall balancing process have fosters culminates
of the goal congruence and make the overall performance values for the interest of the
company. Thus the performance measurement process have initially played for the initial
development of the company.
Hence the core strategies related to the performance measurement are as follows-
Financial perspectives
The financial performance measures the overall profitability of the company and the
growth. Historically the process have been very much of importance to show the
determination of the organisational health. Hence it is an important aspect for the company to
improve the business towards the long term success (Das 2013). The only goal of the
company is to increase the overall sales growth and make the market share increased. Thus
the process is helpful to achieve in cutting the cost. Thus this strategy is helpful for both the
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