GM International Human Resource Strategy - Example

GM International Human Resource Strategy Name GM International Human Resource Strategy Course: Tutor: Institution: Date: Executive Summary This report offers a review of the proposed GM Company overall HR strategies in the market. In this case, the report offers a review of the existing organizational HR practices such as the recruitment and selection process, performance evaluation system as well as the reward system. As such it establishes that the organizational recruitment and performance empowerment programs increase their overall success rates in China. However, it establishes that the organizational reward system poses a major challenge in the market. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 5 2.0 Market Analysis 5 2.1 Political Factors 6 2.2 Economic Factors 6 2.3 Socio-cultural Factors 6 2.4 Technological Factors 7 3.0 Recruitment and selection Process 8 3.1 Recruitment and Selection Theories 8 3.2 General Motors Recruitment and Selection Evaluation 9 3.3 Relevance in the Chinese Market 11 4.0 Performance and Appraisal Evaluation 12 4.1 Theoretical Approach 12 4.2 Company Evaluation 13 4.3 Environmental Analysis 15 5.0 The Reward System 16 5.1 Reward System Theory 16 5.2 Company Evaluation 17 5.3 Reward System Applicability Critique 18 Conclusion 20 References 21 1.0 Introduction This report offers a review of a proposed joint venture for General Motors in the Chinese market. In its performance, the organizational history that spans for over three decades the organization has increasingly expanded its influence in the European market through product diversification as well as the development of quality products in the market. In this case, the organization seeks to develop a joint venture with the Chinese market. An evaluation of the Chinese motor vehicle industry establishes a developing market culture (Qiu, Turner and Smyrk, 2004, p.107). In this regard, the industry has over the years developed an increasing demand. Statistics demonstrate that the Chinese economy as indicated by its GDP is rising. As such, this implies that a majority of the population is rising form the poverty level to the middle class with an increased demand for luxury products such as vehicles. Moreover, as Snyder (2009, p.3) argued, the Chinese market, due to increased economic development is emerging as a major global luxury vehicles market in the globe. Therefore, the combination of these factors justifies the organizational proposed joint venture in the industry. However, due to the diversity of the existing Chinese macro economic factors are likely to affect the organizational HR system. As such, this report evaluates the macro environment factors, the existing GM HR systems as well as their applicability in the Chinese market and recommended adjustments and changes. 2.0 Market Analysis In order to amply evaluate the Chinese market as well as the motor vehicle industry, this report adopts a macroeconomic environment factors evaluation approach. As such, the report evaluates the existing external factors likely to implicate and influence the venture HR systems and policies. As such, the venture applies the PEST (political, economic, social, technological analysis). In this regard, the application of this analysis tool is based on the review established by Dent and Elliott (1995, p.166). The authors argued that the approach offers a complete external market evaluation score card through which organisations can evaluate and base their subsequent strategic organizational alternatives in the market. 2.1 Political Factors The Chinese government with the increasing concern of rising unemployment rates as well as the use of expatriates in the Chinese multinational ventures developed regulatory frameworks to curb this challenge. As such, the government restricts use of expatriates to areas and industries with no local skills available. Therefore, organisations venturing into this market should consider and seek to develop locally based recruitment and selection processes as a legal conformance requirement. 2.2 Economic Factors The Chinese market is an increasingly developing economy. With increased multinational ventures into the society through globalizations as well s the support of local industries by the government, a majority of the labour force are earning substantial earnings in contrast to the traditional sweat shops. Therefore, proposed organizational ventures should seek to establish market ventures seeking to develop appropriate and befitting organizational reward systems with high financial rewards in order to attract enough talents in the society. 2.3 Socio-cultural Factors An evaluation of the socio-cultural processes in China, establishes one key business factor under the Guanxi approach. Wong and Wong (2013, p.42) argued that business ventures in China success is based on the establishment and development of key social relationships in the market. Through such an approach, the organisations need to establish trust and relationships with other market partners and stakeholders prior to establishing business links with them. This is a market model and approach different from the European market that due to the engraved capitalism concepts in the market emphasizes on the need for organisations to develop business relationships. In this case, organisations seeking to venture in the Chinese market must seek to establish relationships in the market as a base of establishing trust to facilitate increased organizational success. In this case, such ventures should orient and focus their HR practices onto increased organizational public relations building. In this case, the relationships are developed through increased organizational reputation status in the market where trust breeds business alliances and partners. As such, the organisations should focus on developing strong HR functions as they form a key success factor in the Guanxi relationships establishment in the market. 2.4 Technological Factors A Chinese market technology application in its manufacturing process establishes that the industry technology application trend curve increases n this case, organisations, especially in the automotive industry are increasing applying increased technology tools in the market. Therefore, through this approach, the industry requires an increased HR force with technology factors. Therefore, through this approach, organisations seeking to venture into this market should consider recruiting a workforce with increased IT skills. However, because the Chinese labour market has minimal IT skills and expertise, organisations venturing in the market should focus and target on developing and establishing the employee IT skills through improved employees training programs upon the establishment and development of such a workforce. 3.0 Recruitment and selection Process 3.1 Recruitment and Selection Theories A recruitment process is the process and nature through which organisations acquire and attain employees into their respective functions. Therefore, the nature and approaches adopted under the recruitment process largely implicate on the organisations ability to attract and acquire not only qualified but also fitting and appropriate employees to pursue and execute its organizational model. Tayfur (2013, p.627) conducted a study evaluating the interrelationship between an organisations recruitment process, human resource workforce quality and the eventual organizational performance and success capability. The study analysis established that an organizational recruitment process played a significant role in the nature and type of attracted human resource. This argument was supported by Aswathappa (2005, p.135) who argued that the nature of a recruitment process implicates on the level and type of attracted employees. As such, while as some recruitment processes may attract high level employees, others may only attract low level and less qualifies employees. Consequently, this reveals the direct link between a recruitment process as well as the quality of the HR workforce. It is imperative to note that an organizational strategies, goals and objectives are executed based on the number and quality of HR present. Therefore, if the recruitment process attracts poor quality workforce, strategy implementation is bound to be negatively affected due to the lack of human resource capacity and capability to execute and implement them. An additional study by Mitchell, Heaney and Cooper (2007, p.594) on recruitment, sought to establish the external environmental factors affecting the ability of respective organisations and recruiting agencies to acquire and attract an amply qualified workforce. In this case, the study evaluated the correlation between diverse organizational environments and the recruitment process capabilities. In its analysis the study established that indeed, the external environment implicated on an organizational recruitment process success. Among the listed factors was culture and economic status. On one hand, culture plays a significant role in the perception and development of decisions on ethical and moral issues. Therefore, different cultures would interpret the ethical and moral standing of a recruitment process differently. Moreover, the economic status of a society implicate on their attraction and motivational factors. For instance, in a developing economy with low earnings, high financial remunerations serve as a recruitment attraction factor while the same cannot apply in developed economies with high earnings and individual wealth. 3.2 General Motors Recruitment and Selection Evaluation An evaluation of the General Motors Company, establishes that the organization applies a range of recruitment approaches in order to attract a wide human resource base. On one hand, the organization applies the services of an external stakeholder through outsourcing. Outsourcing has a range of organizational merits that allow for increased workforce quality and efficiency. On one hand, it offers the organization enough time to concentrate on the core activities, rather than diverting the organizational management attention from their market and industry responsibilities into recruiting workforce. Due to the repetitive nature of the recruitment process, involvement of the managers into such an engagement would reduce their efficiency and performance in their respective mandates and functions. Therefore, in cognizant of this fact, the GM Company applies the services of the seven steps recruiting company. In this case, once an opportunity arises, the organization places its job description requirements and the agency recruits a suitable candidate on its behalf (Barabba, Huber, Cooke and Pudar, 2002, p.22). Moreover, the organization currently has an online portal through which applicants apply and get selected on a three step process. On the first step, upon establishing the existing vacancy, applicants file their application through an online portal that requires them to develop personal profiles. The second stage includes a review of the applicants’ academic and professional qualifications as well as their other related attributes relevant for the vacant post. The last stage of the organizational recruitment and selection process is the conducting of the interviews. Due to its geographic dispersion, the organization allocates its respective functional managers in the divisions and regions with the vacancies to conduct the interviews; based on whose recommendations the successful candidates are selected and incorporated into the organizational workforce. Further, the organization has an additional unique recruitment approach through which it recruits students directly in their schools nearing graduation. Through this approach, the organization seeks to directly tap into the cream of the industry by edging out competitors through filtering the talents before they are introduced into the market. Moreover, the approach serves as a corporate social responsibility program through which the organization offers direct practical training opportunities for the students to expand their career knowledge ad capabilities. 3.3 Relevance in the Chinese Market An evaluation of the existing GM recruitment and selection process based against the existing literature establishes that while as some of the methods are applicable and befitting in the proposed Chinese joint venture HR acquisition, others are irrelevant and need be changed or eliminated in the venture workforce recruitment. On one hand, the organizational students’ recruitment process is an ideal approach in the Chinese market. With the large population base, and the lack of enough skilled labour in the automotive industry, the organization can sufficiently overcome the challenge through the establishment of a program in which the top performing students join the venture upon graduation. As such, this would increase the overall organizational HR quality consequently enabling it achieve its strategic objectives. Moreover, it would offer it a competitive edge against competitors in the market (“The Driving Force”, 2014). Nevertheless an evaluation o the organizational online portal seems in applicable in the Chinese market. Although the economy is developing, a majority of the labour force remain in the analogue stage with lack of sufficient infrastructure to access technology and the internet. Therefore, the joint venture should focus on developing unique recruitment approaches such as through the print media, that remains an authoritative and influential communication channel in China. Moreover, the organization can recruit its workforce through the employment liaison organisations available within the Chinese labour organizational societies that are growing in number. An additional expected challenge in the organizational recruitment process is through the use of expatriates. As Radovic (2012, p.142) argues, the Chinese government, in a bid to reduce on the unemployment rates in the nation, restricted use of expatriates to only the skills and expertise that the economy lacks. Therefore, the organization, that has previously spread its organizational culture through the use of expatriates, will be forced to apply a limited number of expatriates, especially at the top management level. 4.0 Performance and Appraisal Evaluation 4.1 Theoretical Approach Organizational strategic performance and the eventual success in respective markets are directly related to the nature and productivity of its employee. Edgley-Pyshorn and Huisman (2011, p.612) conducted a study evaluating the relationship between organizational market success and their employee productivity rates. In this case, the study established that there exists a directly proportional relationship between employees’ productivity and the overall organizational success. Therefore, based on this review, Rodriguez and Gomez (2009, p.277) argued on the merits of developing human resource management strategies and approaches through which employees productivity can be improved. One among the employee productivity enhancement programs is employee empowerment. Huq (2010, p.13) defined employee empowerments as the process through which organizational functional employees are entrusted by the management and the organization at large to develop and execute own unique operational goals and objectives. In this case, the process of developing and executing own goals increases the process of employee interests alignment with those of the organisations. As such, through increased interests’ alignment, employee motivation is imperatively improved thus increasing their performance, productivity and subsequently the organizational markets performance too (Windrum, Reinstaller and Bull, 2009, p.199). In addition, the employee empowerment program increase an organisations HR and overall success levels through reduces strategies and process resistance. Basically, a majority of the organizational processes and strategies fail not because of the lack of objectivity but because of employees increased resistance. In this case, the employees in the program feel left out due to the lack employees’ support as well as increased employees resistance. Therefore, through increased employee empowerment and involvement in the respective organizational programs, the rate and nature of employees resistance is significantly reduced in the market. In this regard, in order to increase the overall organizational strategies in the market, it is imperative for the organisations to incorporate employee empowerment programs in the market to enlarge the overall organizational success rates. In this regard, such programs should seek to develop the organizational HR capacity as a measure to increase the overall organizational success rates (Buck, Porteous, Wynne-jones and Marsh, 2011, p.503). 4.2 Company Evaluation A review of the General Motor Company review establishes that the organization has in the recent past established in the market a range of employee performance involvement as well as increased employee participation in the market. On one hand, the organization has increased the overall organizational employees’ team participation in the market. In this case, the organizational ventures and activities are grouped in respective teams. As such, the organizational employees are trained and organized in teams through which they execute their mandates. In this case, a majority of the organizational projects are managed and run by the respective teams comprised of inter and cross functional employees in the market. Subsequently, through this approach, the employees in the respective teams develop appropriate organizational strategies through which the organizational strategies are developed. Therefore, this increases the overall employees process involvement in the decision making process. As such, the employees expertise and career development are subsequently enhanced. Therefore, through this approach, the organizational employees in the case improve their participation and thus subsequently reducing on the overall employees’ resistance in the market, a virtue imperative for overall organizational success in the market. In addition, the organization has facilitated increased employee empowerment programs in its hierarchy decision making. Employee empowerment, as Baird and Wang (2010, p.576) argued, involves the respective organizational responsibilities and adjudication of the overall responsibilities in the market. As such, in this regard, the organization increases the overall employee career development in the market. Therefore, increased employee empowerment and involvement in the decision making process increases their overall productivity in the market. The GM Company increases its employee empowerment programs in the market through increased lean system application. In this regard, the organization developed a lean organizational system through an increased approach in the market where their supervisory and line management systems are subsequently reduced (“GM Authority”, 2014). Through the reduction of the overall organizational hierarchy systems the organization increases the overall organizational increased employee involvement in the respective decision making process. Instead of increasing the overall organizational hierarchy organizational system through which the employees are managed, the organization increases the functional managers rather than the line managers. In this case, the functional managers serve the employees an increased overall support role through advising and directing them. Therefore, through increased employee participation and involvement, through the functional rather than line managers, organisations have increased employee support systems through the functional managers. 4.3 Environmental Analysis An evaluation of the GM Company employee empowerment, performance and appraisal system, the organization increases its overall success rates in the market. A relationship between the organisations performance enhancement and appraisal systems increases the overall success rates in the market. As such, the organizational use of teams is a major merit and functional approach through which it can motivate the employees in the Chinese joint venture. Through this approach, the Chinese society and labour market focus on the development and use relationships. The concept and culture of Guanxi in China insists and focuses on the use of relationships and networks to develop employee skills as well as improve their overall performances (Lo, 2012, p.218). Through this approach, the employees through increased participation in the teams and the development of the subsequently developing their Guanxi relationships in the market through increased relationships and networking relationships in the market. However, the concept of reduced supervision and reduction of line managers in the market poses a major threat. In this case, the Chinese cultures are based on the development and use of supervisors and the subsequent reliance and dependence of the employees on directives. In this case, the employees’ population base relies on increased organizational supervision to increase their productivity and focus to their performance. In this regard, the organization should seek alternatives performance and employee management approaches. Further, through this approach, the organization should focus on alternative evaluation tools through which the organization increases the overall influence in the market. Through this approach, the organization can incorporate approaches such as employees’ relationships and influence (Lu, 2012, p.467). As such, through the establishment of the social aspects and approaches in which the employees value. Consequently, this would incorporate and enhance increased employee relationships and overall market success and productivity enhancement. 5.0 The Reward System 5.1 Reward System Theory An organizational reward system is the process and approach through which organizational employees are motivated and influenced to work hard in the market. As such organisations in the market increase the overall organizational performance and productivity based on the organizational employees’ motivation enhancement. Ramlall (2004, p.54) conducted a study to establish the nature through which organisations can increase and improve their overall success rates. Therefore, through organizational reward systems they stimulate their employees’ motivations well as performance success rates in the market. As such, in this case, organisations employ diversified approaches and strategies through which to reward their employees. Through the application of the balanced score card approach, organisations have an increased organizational employees reward systems through both financial and non-financial systems. An evaluation of the Maslow’s hierarchy of needs reveals that organizational employees have a range of diversified approaches and needs (Koontz and Weihrich, 2007, p.290). In this case, the employees needs range from the basic to the elf actualization needs in the market. As such, through this approach, organisations have to establish the respective employees need as well as their needs levels in order to establish the ideal approaches and strategies through which the employees can be rewarded as well as motivated. On one hand are the financial rewards systems. The financial rewards system applies to the diversified products such as the actual employee remunerations and funds to the organisations. As such, this includes the nature through which employees are employed either on a permanent, contract or on a casual basis. Through this approach, the employees’ remunerations and salaries are part of the financial rewards. In addition, employee allowances such as overtime payments as well as extraneous activities reward systems. On the other hand, the organisations increase their overall reward systems through the application and use of non financial reward systems. In this case, the non-financial reward systems are especially based for employees in the respective higher level needs in the Maslow’s structure. Therefore, through this approach, organisations increase their overall influence in the market by offering them opportunities such as recognition, promotions as well s honorary performance awards. Ajemunigbohun, Tijani and Oreshile (2013, p.7) argued that through increased integration of both the financial and non financial systems through which organisations can motivate as well as reward their employees in the market. 5.2 Company Evaluation An evaluation of the GM reward system establishes that the organization applies both reward systems. On one hand, the organization applies the financial reward system. In this regard, it directly offers financial rewards and incentives to the employees for their services and expertise offering. Traditionally, the organization employed its employees on a permanent basis. As such, the employees acquired fixed remuneration rewards and rates in the market. However, changing organizational economic performances and market dynamics in the industry have resulted to increased use and application of alternatives led to the changing of the organizational reward as well as employment terms. In this regard, the organization applies the annual hour’s contract employment system. Agardy, Nemerow and Salvato (2003, p.457) described the annual hourly employment system as a system through which employees are paid on the basis of the hours they work for. As such, the contractual terms indicate the overall hours that employees can work in a year. Consequently, this reduced the organizational responsibility for paying employee overtime basis, thus significantly reducing on their overall employee implication costs. In addition, the organization relies on the development and use of alternative measures under the non financial system. In this case, the organization although on a small scale applies the concept of non-financial reward system. Consequently, this increases the overall organizational attractiveness in the long run. 5.3 Reward System Applicability Critique A comparison of the organizational employee reward system with the Chinese market for the proposed joint venture establishes major challenges. In this case, the organizational annual hourly approach is not satisfactory in the Chinese market. Unlike the European market that has a shortage of labour, the Chinese market is a contrast with an increase number of readily available pool of labour. Therefore, the organization has an alternative of developing a second employee employment system. Therefore, through this approach, the current organizational system increases the overall costs irrelevantly in the market. Instead, this report proposes the development of an alternative approach through which the organizational proposed venture can reduce on its employee reward system as well improve its systems relevance in the market. In this case, the report advocates for the zero contract employment system. Through this approach, the organization increases the overall organizational efficiency through which the costs are relatively reduced. On one hand, the zero based system applies no minimum threshold for minimum wages. Instead employees are allocated jobs and assignments as they arise. Consequently, they are required to accept the organizational divided responsibilities as they arise. Although the employment approach limits the overall employees’ liability to accept responsibilities, the presence of a wide range of employees in the market provides the organization with better alternatives through which declining employees can be replaced with (Weekley and Jones, 1999, p.671). Through the application of these approaches the organizational HR will acquire the ability to hire and retain qualified organizational employees for the joint venture. Through the relieving the organization of the burden of rewarding the experts on a regular basis but rather when their services are sought and offered the approach will allow the joint venture accrue and develop a wide range of qualified and skilled workforce. Moreover, the application of a lean employee’s management system will allow for reduced employment costs thus developing the acquisition of increased organizational funds for other employee related processes such as increased training programs as well as employee empowerment and motivational initiatives. Moreover, the increased funds availability and the subsequent reduction of production costs will serve as a major HR contribution to increased organizational efficiency reduced overall production tools as well as increasing overall gross profit margins in the market. In addition, the organization should consider an increased use and application of the non financial reward systems. The Chinese culture places an increased emphasis on social and cultural ties. Therefore, the organization should consider motivating and rewarding its joint venture employees through approaches that support and embrace the family and social ties. Such alternatives include the development and use of family trips as well as gifts to respectively performing employees. Conclusion This report offers a review of a proposed joint venture for General Motors in the Chinese market. In its performance, the organizational history that spans for over three decades the organization has increasingly expanded its influence in the European market through product diversification as well as the development of quality products in the market. In this case, the organization seeks to develop a joint venture with the Chinese market. An evaluation of the Chinese motor vehicle industry establishes a developing market culture. In this regard, the industry has over the years developed an increasing demand. Statistics demonstrate that the Chinese economy as indicated by its GDP is rising. As such, this implies that a majority of the population is rising form the poverty level to the middle class with an increased demand for luxury products such as vehicles. Moreover, as Pan (2014, p.389) argued, the Chinese market, due to increased economic development is emerging as a major global luxury vehicles market in the globe. Therefore, the combination of these factors justifies the organizational proposed joint venture in the industry. However, due to the diversity of the existing Chinese macro economic factors are likely to affect the organizational HR system. As such, this report evaluates the macro environment factors, the existing GM HR systems as well as their applicability in the Chinese market and recommended adjustments and changes. References Agardy, F. J., Nemerow, N. L., & Salvato, J. A. 2003, Environmental Engineering, Wiley, Hoboken, NJ. 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