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

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 challen...Read More

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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short and the long term perspectives. Thus it could help to increase the overall performance
of the company and provide the customer satisfaction as well. On the other hand the quality,
cycle time reduction and the changes in the performance measurement could look to improve
the business standards as a whole. Similarly the kiwi furniture company have looked to
perform more in the respect of the performance measurement techniques by incorporating
some new techniques to achieve sales target and improve the overall financial performance of
the company
Customer perspective
Customer perspective is another aspect where the company’s overall success is looked
after. Hence the customer satisfaction is another important aspect to look after. The customer
satisfaction is a process to monitor on a regular basis. The concerns generally fall down to the
process and the four categories of the customer satisfaction is related to the determination of
wants, needs and desires to the process. Thus the process is useful to generate the standard
setting goals. It could look to improve the overall sales value to the extent. Similarly the kiwi
furniture could look to improve the overall customer’s satisfaction and can look to improve
the sales value by retaining more number of customer worldwide and enhance the
relationship..
Recommendations
Identify and praise the good workers
The process indicates that the appraising performance of the ben curve is a bit
problematic. But when it comes to identifying the star performers the ben curve is proven to
be helpful in this aspect. In most of the cases it can be said that the 10 percent of the
employees make up in the lower ranking and 10 percent make up in high rank. Hence there is
a change in the contribution margin percentage. Hence in order to be successful to the process

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it is important to let the main key employees the opportunity to grow further. Similarly the
kiwi furniture could look to implement the techniques and look to praise the effective
workers. Thus by motivating the workers to produce more and increase profitability
(Edwards et al.,2015)
Turn the managers to coaches
The managers needs to be focused on improving the employee strength through the
coaching. Unfortunately almost half of the money are spent on less than 10 percent of the
time coaching process. Hence only 28 percent of the feel that the managers hold effective
decisions about the performance increase. The managers need to keep the performance
feedback on the future as possible. Hence the underperformance does not look to facilitate the
future development. Hence the effective coaches give an effective and important feedback
related to the process. Hence the encouragement comes to play In this case. Similarly for the
case of kiwi furniture’s it is important the management takes the upper hand to train the
workers properly and make them job ready in this aspect. Hence the workers will be job
ready and will deliver more profits to the business. Hence the company could look to make
more money out of it (Stan, 2013).
Develop an effective way to measure success
In order to improve the overall business performance there is a need of continuous
approach to the performance management. The systematic approach tool will be effective to
draw an effective performance management system. Hence the overall reports will be very
much useful in this context and the same will help to improve the overall performance of the
employees. The goal is created and have been drawn towards the specific role play. Hence
the overall process will be needed to develop the strategic, and individualized planning
process. Hence there are some specific set of objectives is to be performed as a team

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(Lemański 2014). The task objectives are set to be very much important during this process.
Thus the whole process is going to bring more success to the business. Similarly the factors
which could drive the best possible success are based on the performance measurement
factors. The kiwi furniture could look to implement the success factor within the
organisation. The daily performance of the workers are to be decided upon the overall output
and the total rate of production factor.
Cultural and the institutional comparison between France, New Zealand and japan
Cultural comparison between France and New Zealand
New Zealand France
Power distance:
The dimension deals with the fact that the
individuals in the societies are not in equal. It
expresses the attitude of the cultural aspects
towards the inequalities. The distance have initially
been clarified as the most powerful members of the
institutions or the countries which could expect in
the power distribution process equally. New
Zealand have ranked 22 within the organisations,
hierarchy is established to the convenience and the
teams to implement the same expertise. Hence both
the managers rely on the individual employers and
the teams based on the expertise. Thus the
communication is formal to this aspect (Jackson et
al., 2014).
Power distance
The dimension deals with the fact that the
all the individuals could look to act towards the
inequality process. Hence with a score of 68 the
power distance process is generally high. Hence in
the dependency to the parents are moved to the
teachers and later to the superiors. Hence here the
inequality is accepted. The powers are not
centralised to the company. Hence the comparative
studies have shown that the French companies have
normally one or two hierarchical levels than the
comparable companies in the countries like
Germany and UK. Hence there are accessible have
the privileges to the process.

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Individualism
The fundamental issue are been addressed
in the dimension is the degree of the independence
of a society maintains among the members. It is has
to do with whether the peoples self-image is
defined in this aspect. Hence the collective society
aspects are for those people themselves and the
direct family members. Hence the parents along
with the children are emotionally independent with
the process in the process are supposed to take care
of the people in this process. Hence this
comparison could create a lot of contradiction in
this case. However this model does not influence
anything but gets structured to the process of
reality. Hence this cultural combination plays an
effective role in France.
Individualism
The fundamental aspects are addressed by
the dimension of individualism to the degree of
independence. Here the general individual societies
are supposed to look after the overall value
addition process and the groups are considered for
the loyalty exchange. Hence the country ranked in
79 express the individual culture and the other
aspects. Also the exchange based works are looked
into the world of work, hiring and other
promotional activities.
Masculinity
The masculinity on the dimension indicates
that the society will be driven by the competition,
achievement and the success point. Hence the value
system starts in the school areas and are continued
to the organisational life. On the other hand the low
score dimension I the process which is carried in
the society and the feminine society is stand
towards the success point and hence the crowd is
not admirable. Hence ranked in 43 France is fully
feminine in culture. The overall value indicated In
the process is very much goes between the social
welfare cultures. The country have a 35 hours of
working culture, and five weeks of holidays per
year. Hence it is another unique characteristics for
the world class feminine. This process is not fully
seen in the other countries.
Masculinity
A high score of masculine of dimension
indicates that the society is driven by competition.
Achievement and the success story. Hence the
success are defined by the value proportions
techniques for both in the work and leisure times.
Here the dimension means to the dominant values
of the society and the caring nature. Here it can be
said that the crowd is not admirable. Thus new
Zealand being ranked 58 is known as the masculine
society the behaviour in the school, college and the
workplace is fully masculine type. Here there is no
shared value to the process and one man
domination culture is seen over there. Thus the
process is involved in hiring and proper
achievement to the promotional decisions. The
people over there are very much happy and proud
of the achievement in life. Hence there is a place to
improve the promotional involvement to the job.
Here the main target is to resolve the process in the
individual level and the goal is to win.

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Indulgence
One challenge which confronts the
humanity and now the past is in the degree to
which the small children are being socialised.
Hence the society is off no use without the human
being. Hence there have been an Increased
tendency to the relatively week control over the
business process. Here the indulgence puts the
control over the resistance. The cultural value is
reviewed towards the changed policy and the
customer segment is viewed as indulgent. France
scores 48 rank in the avoidance and the same is
high on the happiness indices (Ferner et al., 2013).
Indulgence
The humanity confronts challenge is over
the degree of the socialism. When the society is of
human value, then it can be noticed that the overall
process is very much of necessary to implement the
likes of socialism. The culture and the society play
an important part to this aspect. The country ranked
75 in the overall ranking could be viewed in the
way of the fun loving value process. Hence in this
case it can be said that there is a high degree of
importance in the leisured time.
Institutional comparison for japan
Employment law in japan
The Japanese labour system is very much under pressure and the job market provides
mobility and elasticity. In the traditional model the peculiarities are under the job
requirements and the job security until retirements. Hence with the seniority based process
pay and the promotional aspects have become inefficient, inequitable and the controversial
models. Hence there is a number of irregular workers and the temporary staff have been
increased to the last 30 years and the legal framework is very much rigid. The employment
process followed by japan are as follows-
Overtime is capped at 45 hours a month and 360 hours a year. The annual limit is to
be extended to 720 hours subjected to be increased by 80 hours. The new business rules and
regulations have applied in the case of breech. The annual paid leave is expected to be 10
days with 5 least day off. The overall system is initiated and the same is to be applied from
April, 2019.

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The equal work and equal pay partnership process is also very much important in this aspect
for the regular and the non-regular employees. The contract law, contract workers could
initially look to create more disparities and discrimination between the regular and the non-
regular employees including dispatched workers. Hence these changes will include one year
moratorium.
Economic condition in japan
Although there is a slide in the Japanese economy, however it is seen that the
Japanese economy is degrading, but still there is a road to recovery. The exports remain at a
high level before there is a domestic demand for the firm. Hence the main component to
choose is based over the personal consumption. The capital investment policy is looked to be
increased slowly and ensuring high corporate revenue. Considering the example of high
direct impact in the crude oil and the same have also made an impact on the prices of the
gasoline and kerosene. Apart from this the negative result in the prices could bring slow
progressions in the economy of japan. Hence it is said that the current crude oil prices could
be degrading then. This could result in the impact on the products and services.
Tax reformation
The elements like system pension, Medicare and nursing care process have been
reformed properly. Hence the benefits adopted in this case have decreased the payment
process. The successful reformations could look to provide the viability on the system. The
reformation process have looked to add certain reformation to the process like the medical
facilities, nursing care and other element. Hence the overall reformation have been very much
useful to the process and it could let the people lead a happy life overall.
Political influence in japan

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The LDP had continued the dominance in the Japanese politics since the year 1993.
The success in steering the Japanese through the different years of the OPEC oil crisis and the
economic degradation have substituted the economic transition. The certain change in the
high technology driven enterprises in the late 70’s and 80’s have restored the overall political
influence particularly to the politicians, ecologists and the sociologists have made the
changes possible. Moreover there are some overall changes occurred in this respect. Hence
these had been considered as the major political influence and changes which had made to be
worked in this process.
The ADKAR model of change management
It is been considered as one of the most used model of change management. It focuses
over the ensured changed management process occurs indefinitely. The model does focus
over the involved support and the changed belief is expected to be implementing and
supporting the changed management. The overall model of management have focused over
the business dimension. The model is focused to the study of 900 organisations across 59
countries and the same had been made over 14 year period. Carried out by the US market and
region. The research had found that the employees are in the need of supporting the changed
strategy overall. Hence there are 5 steps are to be considered in this case.
Awareness
The employees are needed to be aware of the exactly what the change is occurring
and why it is necessary. If the employees are not fully aware of the things and they can look

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to loose motivation and the overall strategy direction. Here the managers have a crucial role
to play in this aspect. Thus it is to be considered as a changed process. Similarly in the case
of the kiwi furniture the employees are to be aware of the things going towards surrounding
area. Hence this process could look to implement some new beneficial changes within the
business.
Desire
To support the best possible strategically change that come naturally from the
company employees rather than the same coming out of the employees. Thus it is important
to include them to develop the process and vision which could envisage the overall
implemented changes that could bring out the desired final outcome. On the other hand the
kiwi furniture had also desired to implement certain changes into the business process as a
whole and could also looked to expand the business as a whole.
Knowledge
Change could be implemented in the routine and skillsets for the employees rather
than forcing to have make overall changes. Hence for this reasons the basic project and there
should be fully supported by the acquisition and the overall development of the skills.
Similarly the same process could be considered in the case of kiwi furniture where the
workers must have to have enough expertise and knowledge about the products and services
as a whole. It could help to increase the overall customer base and the company could look to
retain most of the customers.
Ability

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It is important to be able to develop the overall knowledge and the business process.
Hence the same could be easy to put together only if there is a certain area to accept the
process. Hence the same could be considered in the case of kiwi furniture where they could
be expecting to be having the ability to accept the basic change.
Reinforcement
The basic changed process is expected to be having implemented and the reward for
the individuals changing the basic models and methods. Here the process should be
reinforced to implement the changed business. Hence it could be ensuring the employees
resist the temptation of slipping back to the old habits. Similarly the reinforcement could also
be helping the kiwi furniture to reinforce the business strategies and imply the same strategies
within the business process.
The business dimensions had also incorporated the focus on to imply the possible
changes and hence the objectives are to be needed to be meet the requirements. Hence if the
possible changes are been incorporated there is a high chance that the timescale will be
completed here on. Apart from this there should be the people dimensions to the process
which is needed to be overcome and there should be making the possible changes to be
implemented and there has to be focus on the dimension of the business changes as well.
Similarly the ADKAR model is considered as an useful tool to the process which helps to
provide the company individuals and look to monitor the process as a whole. Thus despite the
model being occurring in the process and hence it is important to recognise that the
individuals will be at a different stages of process all the time.
ADKAR model advantages

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It focus on the outcomes rather than the tasks. The most changed management models
focus on what needs to be done here and the ADKAR model focus on the possible outcomes.
The model could measure the progressing changes. Hence for each step of model the progress
can be witnessed at any individual level.
The process provides a direct checklist of the things to be needed to manage the change.
Disadvantages
It ignores the program management and the same is needed to provide direct
clarification and the steps needed to get the final destination.
On the other hand the same process is very much applicable to the similar change activities.
Hence only focusing the effective changes to the large scale business areas in the process.
Therefore it is important to issue the basic applicable changes to the business. The process is
very much descriptable to the people reinforcement.
Conclusion
Hence from the overall report of kiwi furniture it can be said that the human resources
theories used by the kiwi furniture had been very much useful to the context. The process like
recruitment, selection have been effectively used by the company in this process as a whole.
Later on the company had also incorporated some effective strategies to the organisation.
Hence the company have properly used the human resource policies and procedures. On the
other hand the cultural and technological changes have been properly initiated by the
company as a whole. Hence it had made the company to be successful in the future.

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