Human Capital In International Companies Management Essay

adult male Capital In global Companies anxiety hearTo expand glob completelyy, arises different problems and ch in allenges for HR worryrs in merciful resources segment. It is to a greater extent concentrated to manage employees abroad, than if employees were in the home base.The growth of woody bakehouse supranationally determined in the altogetherfound assignment and tasks. There is a need to successfully manage this for the benefit of two woody bakery and the individuals.The paper observes the swop from municipal to international HR precaution, which examines issues of culture, contracts, agreements, curement accomplish, and remuneration in woody bakeshop intricacy to another(prenominal) countries. All the uniform, the paper discusses suggestions for HR managers, which entangle cultural research, and the fits of woof, learn, consummation management and remuneration.In this new era of sphericalisation, international gentle race resource managem ent is becoming a vital construct for homo resource managers to be able to practice homo resources functions, off preparation to mention, recruitment selection, execution appraisal, compensation benefits, pedagogy victimisation and in the end employees relations. This is authoritative for human resource managers in international corporations and excessively in domestic found human resource managers who import employees from overseas.To lenify updated with the changing world, human resource managers will have to have an international vision of how to manage their individuals successfully both at home and abroad.Managing international human resources allows wooden bakery to p artworkicipate more effectively in the market place, and is a festering tool for its employees. smash 1 IntroductionHuman Resources explanationHuman Resources is not only have-to doe with in makeing the employees their salaries and providing them with the benefits til now it comprises one of t he arrangings important resource that is the Human resource done hiring, knowledge and create and most importantly hold backing them for the benefits of both parties.Human Resources refer to the policies, systems and utilisation practices that ar apply to attract, motivate, develop and retain firms employees. In other words, human resources is considered as an organization function, that focus on recruitment, providing c beer path for the concourse who work in the firm, and pickles with military force issues such as hiring, compensation benefits, implementation appraisal, safety, employees motivation and finally learning development.Human resources is no longer a traditional personnel, and regime, however Human resources role is more strategic and deal with strategic aspect, to make current that employees contribute effectively and works in parallel with the familiarity dependion to achieve the firms goals and objectives.Human Resources functions be leafy veget able to most firms, outset by attracting talented people by recruiting and selection, second retaining talented people by wage and lucre, benefits and employees relations and finally developing the people by learning, development and performance appraisal.Nearly every comp whatsoever says itHuman Resources importance and Need in International CompaniesThe Human Resources segment is important in all multinational and international companies. Recruiting and selecting is one function completed by HR, and their of import responsibility is hiring and retaining companys most important summation that is our PEOPLE.Failure to do so, and lack of strong, motivated and satisfied employees, working in the right place in a firm will leads to hiring the unconventional people, graduate(prenominal) turnover, employees will not do their best in their subcontracts and having approximately shtupdidates demotivated. Thus, without good employees, the best business plan and ideas will be unsuc cessful.As well, Human resources larn care of all the employees concerns, make sure to answer employees issues immediately and to play the fair judge between the employee and the organization, for both sides advantage.Nevertheless, Human resources guarantee smooth functioning of the operation, good and safe working conditions and warrant that all ply is performing their jobs efficiently and toward the organization goals and objectives. Accordingly, Human Resources film director judges all the employees, reward, takes disciplinary actions or dismissal.Another important role nether the human resources umbrella is training and development, and creating career path for all employees, to retain and develop the existing employees, and attract new talented people, in this modal value the HR will improve the organization re projectation, credibility and commitment from staff, thusly become an employer of choice and reduce turnover.In this world of globalization, and companys expand ing upon to other countries, Human resources adopt new cultures, and take care of all effectual requirements as per the new country rules and regulations, as well as managing payroll, and other pre displaceed benefits.As per the strategic approach, human resources play an important function in developing an organization strategy, and managing the employees activities.Part 2 Analysis of the Organization2.1- woody bakeshop Historywooden bakeshop was set uped in Jal El Dib Lebanon in 1969 by Mr. Edward Bou Habib. It was a simple bakery providing the market with freshly cook theatrical role pelf.In the last decade woody bakery literally revolutionized the bakery industry in Lebanon by setting new standards and upgrading its products and services.Edwards dickens sons Assaad and Ghassan Bou Habib plan and designed the new concept on paper in 1996. With immense vision and an innovative spirit, woody bakery developed a unique concept gathering Bread (of all kinds), Pastries, Swe ets, Sandwiches, Salads and Deli.The first wooden bakeshop issue opened at Zalka lane in October 1999. woody Bakery launched the first franchised operation in 2002 and expand to 26 franchised outlets in Lebanon by the end of the year 2012. woody Bakery opened the first ascertain licence Operation in Saudi Arabia in July 2009, and pre directly negotiating the sale of the have the best prerogative with a flesh of companies from the GCC countries.The Concept of the milling machinerywooden Bakery system revolves around a state of the art industrial baking hot facility. It includes the latest and most advanced machinery and equipment in the baking industry.Human Resources segment make sure to hires top Master Bakers, pastry Chefs, and exceedingly qualified Managers and tint Controllers to assure the freshest and most consistent products for our markets.The wooden Bakery factory produces from 100 to 150 tons of flours per day depending on the market need and factory size. woo dy Bakery is the leading supplyr of high quality Freshly Baked Arabic Bread in the Lebanese market.The Wooden Bakery Factory is capable of rendering a large number ofArabic and European Bread ProductsBread Sticks ironic Desert Products french pastry dough CakesCakes for any occasions (Wilton Cakes)Croissants and DanishesArabic SweetsThe Wooden Bakery Factory houses a central kitchen facility which produces Mixes and Semi complete Products for the outlets such asMarinated Chicken and BeefCheese BlendA Variety of Mixes and BlendsFrozen AppetizersPAR Baked ProductsThe Concept of the OutletWooden Bakery Outlets are designed to service all classes of people in any market around the globe.All Wooden Bakery Outlets are located on Main Road Arteries in Strategic Areas, and considered as a One-Stop-Shop where one eject buy Fresh Hot cut and Arabic Bread, French, Arabic and American Sweets.The Wooden Bakery Outlets offers all mentioned products at Competitive Prices and offer a warm am biance by means of its uncomparable Design, Clean Safe Environment and Excellent Service for its customers.The Wooden Bakery Outlets offer a wide variety of productsFresh Hot BreadAppetizing VienneoiserieMouth-Watering Arabic, French and American Pastry itemsScrumptious selection of hundreds of Cheese Deli productsSelf-Service Products offering the Top 100 items found in every HomeDelicious Manakish, Salads, Sandwiches, Submarines, Pizzas, etc2.2- delegacy and VisionMission StatementOur committee is to push our presence and create a shuffling in the Bakery Industry by passing gameing MORE and Delivering give wayVision StatementOur vision is to dominate the market by expression stores on all main road arteries and major cities and towns in Lebanon and beyond,Our products would be available at ALL grocery stores, supermarkets, catering companies and therefore in every single home in Lebanon.2.3- Local and Multinational elaboratenessWooden Bakery first Outlet opened at Zalk a highway in October 1999.The first Wooden Bakery franchised operation launched in 2002 and expanded to 26 franchised outlets in Lebanon by the end of the year 2012.Baabda- HazmiehMansouriehBauchriehElyssarAwkarZouk MikaelZouk MosbehJouniehJbeilKfarhbabAmiounTripoliZahlehZalkaJal El DibFanarDekwanehChtauraRoumiehBurj HamoudSourZgharta (Soon)Achrafieh (Soon)Chiah (Soon)Naccach (Soon)Bayada(Soon)Wooden Bakery opened the first Master Franchise Operation in Saudi Arabia in July 2009, and currently negotiating the sale of the Master Franchise with a number of companies from the GCC countries.Wooden Bakery KSAWooden Bakeryplan was centred on the key concept that customer satisfaction all over the world is the main goal. It has established and developed its first Master Franchise in Riyadh, Kingdom of Saudi Arabia on July 2009.Its successful set upcan be measured by how our products and services that we supply meet however surpass the Saudi customers expectations.The Bread Factory Outlet w as built on a 10,000 m2 space to house all the output signal equipmentthat willsupply Bread and Pastry products and Central Kitchen Food toil to a number of outlets along with the wholesale distribution of Wooden Bakery Products.The Store is spread over two levels that house a main groundroom with an eating area and a restaurant.Wooden Bakery has stock the award for the Fastest Growing Lebanese Company at the prestigious Social Economic Award 2011, instituted by the global communications elbow room First Protocol to recognize outstanding achievements by organizations in the fond and economic sphere.Today, the name of Wooden Bakery not only spells think and quality, however, it has become a marked proof that a brand can be born, even in the Lebanese bakery industry. Wooden Bakerys expansion in the Lebanese territory has facilitated the achievement of the owners relegation, proving that Wooden Bakery is fitting of the award that comes as a natural translation of its ever-expa nding drive to Offer More and Deliver Better.2.4- Wooden Bakery machinate AnalysisSWOT AnalysisStrengthsServes all classes of peopleBig Variety of products (produced and non-produced by WB items)One Stop ShopMushrooming Franchise (outlets are located on main roads in strategic areas)All outlets have the aforementioned(prenominal) imageProduct differentiation in the PRESTO section sandwiches. Ex. pastoral BreadCustomers loyalty musical note (Shelf life limited)Freshness products (core value)Diversity of products (Arabic, French Pastries Viennoiserie charcuterie Arabic Bread)Rank among the top 25 companies in LebanonHold high level of market share in Leb.Balance menu (variety, quality, and price)Quality Control Management during process, on final product and in outletsFranchise SupportWeaknessesOutlets are rented premises which leads to increase the operating expensesFranchise operated outlets aptitude not have same level of loyalty as the outlets owned by Wooden BakeryIncreas e in mad materials and grok bellsNot every franchised store owner get gnarly in the PL statementNo direct authorityHigh start-up costDelivery ServiceAdvertising plan to increase sales through brand awarenessFamily BusinessOpportunitiesMarket trend turning bakeries into a wider shopping outletsHealthy eating trendOpening new and international markets natural inventions for competitionThreatsIncrease in Labour costs put pressure on button line marginsIncrease in raw materials costs put pressure on gross profit marginsQuality of service focus with the presence of competitors in the marketMany competitors (bakerys, supermarkets, etcPart 3 Methodology and Results3.1- Describing Human Resources at Wooden BakeryAt Wooden Bakery, the human resources discussion section used to work the traditional personnel management tasks, generating payroll and registering employees in NSSF.The Main human resources achievement was shifty from personnel management to human resources management, imple menting all human resources functions, and be more involved in Wooden Bakery strategic plan.Human Resources department today mainly concentrates on recruitment, management, and providing directions and guidance for the people who work in Wooden Bakery.Human Resources department deals with employees concerns such as compensation, hiring, performance appraisal, employee motivation, safety, benefits, employees relations, and training development.However, Wooden Bakery HR department make sure that all the employees are effectively contributing to the overall company direction and to get to the organization goals and objectives.The administration roles usually played by the Human Resources department are becoming increasingly aligned with the company strategic plan, which in turn is evolving the HR into becoming Human Resources Management.3.2- HR Functions in Wooden Bakery3.1.1- Recruitment and SelectionThe ability of Wooden Bakery to achieve its objectives of profitable and sustainabl e growth and high-quality product and service standards depends on the quality of its Human Capital.The recruiting function, which directly affects the quality of Wooden Bakerys human resources, will ar place a critical function in the companys development. It is therefore important that a clear recruiting mechanism is established in pitch to optimize applicator selection, while supporting Wooden Bakerys strategic orientation and values.Proper and nonrecreational recruiting is necessary in order to avoid undesirable effects, includingNegative furtherance or damage to the companys imageWasted time and effort to call into question applicants who do not meet Wooden Bakerys needsCost incurred in training recruits who should not have passed the recruiting interviewsHigh turnover ratesThe hiring process in Wooden Bakery includes Recruiting, Processing, Eliminating, Selecting, Rejecting, File Building, Placing, and orient.The recruiting process is divided into deuce-ace phases Pre- recruiting, Recruiting, and Post-Recruiting. It involvesPosting a job advertisement in appropriate placesEvaluating the tuition digestd on to each one applicationScreening candidates to determine which ones to interview corroborate references and informationConducting personal interviewsDeciding who will be offered the jobOrienting the new employee about the organization3.2.2- mathematical process appraisalWooden Bakery use a new assessment concept for evaluating employees, 365 paygrade, that is created to monitor and evaluate the productivity of Wooden Bakery administration and management staff end-to-end the year.The concept covers three different aspects and tackles employees productivity by looking atMissions accomplished ( periodical Evaluation)Key performance indicators (KPI) ( quarterly Evaluation) per year competency military ratingThe intention of the 365 Evaluation is toMonitor the productivity of Wooden Bakery administration and management staff throughout the year. Compensate and reward exceptional achievements, and where applicable take disciplinary actions against under-achievers.The benefits to be gained from conducting performance appraisals includeRecognizing accomplishments and reflecting the results through monetary legal injury (Salary increase, Promotion, Bonus, etc.)Identifying newly acquired competenciesPreparing employee development plansPlanning improvement where deficiencies are foundGoal-setting parley between supervisors and employeesMonthly Evaluation Mission BasedMission based evaluation is a tracking system that records and rates the mission undertaken by Wooden Bakery administration and management staff on Monthly Basis.TitleSubtitleIllustration1-Mission DetailsTitleMissions name appointee DurationDate of registering the idea and expected mission durationproprietorThe employee who created the idea and who is the custodian for its implementationDepartmentSelf-explanatoryMission arena ObjectivesScopeis the sum total of all products, services and outcomes call for to make sure that the mission is successfully done.Objectivesare the benefits, outcomes, or performance improvements that are expected to be accomplished by the mission.Authority StructureList of personnel involved and needed for the completion of the mission and the designed authority distribution2-Mission weapons platformTask BreakdownBreakdown of tasks and assigning a start and a duration for each taskStart Duration3-Mission Kick-off Registrationproprietor SignatureThe mission owner has to register the mission with the HR department after it has been noted by the direct supervisor and approved by the concerned VPDirect SupervisorVP (Concerned)Human Resources Manager4-Mission Evaluation report for InnovativeAt the completion of the mission, the owner has to get the formal evaluation of the concerned VP. 3 criteria will be used to evaluate the mission (Innovative, Importance, Impact)Score for ImportanceScore for Impact5- Approvals3 parties and the checking of the Internal analyze departmentOnce rated by the concerned VP, the mission score is registered by the HR in the Mission Tracking System.The internal Audit squad is entitled to monitor the proper implementation of the system.Quarterly Evaluation (Productivity Based)The Quarterly Evaluation is a system that measures the productivity of Wooden Bakery administration and management staff by looking at five (5) aspects attendingMission AccomplishmentPolicy and Procedure Development (creation and implementation of new procedure)Introduction of Improving Ideas (Cost saving ideas Process up(p) ideas)Productivity standard (Vary from one department to another each department will be evaluated by use five indicators)Yearly Evaluation (Competency Based)The Yearly Evaluation is a systematic way of measuring, reviewing and analysing employee performance on a yearly basis and using the information gathered to plan for the employees future tense with Wooden Bakery. The f eedback is used to judge employee effectiveness as well as provide necessary Training and development to improve the employees contributions to the Wooden Bakerys goals.The purpose of the Yearly Evaluation at Wooden Bakery is for the manager or the direct supervisor and the concerned employee to have an open discussion about performance expectations and actual performance.The employees actual level of performance is compared to the estimated level of performance using standards that were developed by the supervisor.This expected level of performance is to be derived from competencies needed to perform the job in the highest level of professionalism.The comparison of actual performance with expectations and standards serves as a basis for recognizing accomplishments and planning for improvement where insufficiencies are found. Performance appraisals may withal be utilized in a innovative disciplinary process to resolve continuing poor performance.3.2.3- Training and developmentWood en Bakery encourage growth and career development of its employees by coaching, and helping them to achieve their personal goals, through providing adequate training, encouragement of staff development, and chances for growth.Wooden Bakery training methods includeOrientation training,Orientation training is the process Wooden Bakery use for welcoming a new employee into Wooden Bakery family. New employee orientation, often organized by a meeting with the Human Resources department, that generally contains information about the new job description, the work environment, company culture, company history, the organization chart, tour of department, introduction to colleagues, Wooden Bakery rules and regulations, etcOn-the-job-trainingOn the job training is used in both our branches and factory to teach new employees how to perform job duties. nigh times training sessions take place in the headquarters and some other times on site. For example, customer service, food safety and hygiene, menu implementation.Conferences and SeminarsWooden Bakery works on developing its employees skills by sending them to international conferences, Seminars and Workshops.Some of the trainings attended by Wooden Bakery administration employeesRD Technician and RD Manager were move in 2010 to Las Vegas to attend Baking Industry Trade Fair output Manager and RD Manager were sent in 2012 to Bulguim to attend Professional training session held by PURATOSQuality Controller Supervisor and RD Supervisor were sent in 2012 to Paris to attend training with Chopin TechnologiesMaintenance Manager was sent in 2012 to Vienna to attend a conference in ROSENDAHL Company.3.2.4- payment and benefitsThe term compensation in Wooden Bakery refers to the wages used to reward employees. As for benefits, Wooden Bakery offers paid vacations to its employees.Wooden Bakery wishes to maintain a sense of fairness and equity within the pay structure Grading System.For each position at Wooden Bakery the followin g will be coifdThe Minimum, the Middle, and the Maximum fixed requital rangeThe minimum and maximum of each fixed salary range is selected in line with market realities, and based on external salary surveys of comparable organizations.The parameters used to determine the weight of each job and thus giving an accurate grade based on numerical psychoanalyzeKnow HowTechnical KnowledgeManagement ExtentHuman dealingHighest Education LevelProblem SolvingReasoningDecision makingCommunicationInfluence on OthersAccountabilityFreedom to Act magnitude of put to deathImpact of DecisionsWorking ConditionsLong Working HoursWorking during Holidays broad TravelingHazardous Environment and Critical EncountersThe grading system at Wooden Bakery offers a clear career path for employees who show potentials to advance within the company hierarchy.Moving horizontally within the same grade is governed by different factors includingSeniority (1.5 years spent in each level)Performance Appraisal Recomme ndationsacquiring Additional Skills (Experience and Education)Top Management DiscressionMoving vertically is governed by different factors includingPerformance Appraisal RecommendationsAcquiring Additional Skills (Experience and Education)Availability of the vacancy3.2.5- Employees RelationsWooden Bakery promotes a positive atmosphere, and encourages positive relations between employees, to be able to ca-ca the organization goals and objectives.Employees Relations is concerned to prevent and resolve problems involved by employees which arise out of or expertness affect Wooden Bakery work atmosphere.Wooden Bakery employees relation involves the relation between the employees with each other or their relation with their supervisors.Wooden Bakery concerned supervisors provide advises on how to correct poor performance and employee misconduct.The Company Disciplinary Action is to help and encourage employees to improve, achieve and maintain standards of conduct, attendance and job per formance. It also enables management to deal effectively with those employees who do not comply with Wooden Bakery standards of conduct, attendance and performance in the workplace.Employee relations are designed in a manner which is non-discriminatory and which is Fair consistent and effective. It must also be applied in a timely manner and without unjustified delay.3.3- Human Resources Planning for Global expansionGlobal expansion is a growth strategy for the future. It is at the heart of Wooden Bakerys development strategy. The owners are constantly striving to raise market share through expansion primarily in the Middle east and subsequently worldwide, in order to win over increasing numbers of customers.Wooden Bakery began want out growth and expansion, looking to reach out into new markets through Master Franchising and/or Partnership/Joint Venture.Wooden Bakery planned to expand worldwide after going through a number of challenges and risks that need to be taken into consid eration along with is the Human Resources. The human recourse factor refers to the hiring of employees in the foreign markets, and the challenges and risks that come with doing so.Wooden Bakery will always take into consideration the foreign country laws, rules and regulations, which might be far different from our country of origin and which may await difficult to manage with.One of the differences is the employees contracts in other foreign countries, which define the parameters of an employees job benefits, including vacation time, working hours, salaries, compensation, severance pay, etc.The differences stated sooner will mandate that the total packages offered abroad are tangibly high than those offered within the Lebanese region.Thus, the existence of all the above variances means that any organization looking to expand internationally will need to do unlimited researches in regards to the foreign markets, since it might affect its operation.Implementing a global business s trategy requires having the right people in the right places it requires specialized lead skills-managing the work of people with different backgrounds and customs.3.4- Global Expansion Requires New HR and Training StrategiesRecently the role of HR shifted from being a normal cost center and support service into becoming a strategic partner.Most organizations simply understand that their people are their hawkish advantage, and view human resources as an investment, not an expense. Companies invest in their employees, because the future of the company belongs to the people who are continually involved in educating themselves and developing their skills and knowledge.As companies grow internationally, it is so crucial for global regular employees training. It is human resources challenge to train employees to be able to meet the organization mission as well as the requirements needed and the new region customs.Unfortunately, the legal age of companies have the passion and commitme nt, to invest in their employees and provide them the necessary training for international exposure, but the budget necessary to achieve these goals may not.However, Wooden Bakery focuses on training and has enlarged its training department with highly qualified people who provide all the employees with necessary trainings and skill development opportunities to make sure that organizational goals are achieved. Top Master Bakers, Pastry Chefs, and highly qualified Managers and Quality Controllers are being sent to Wooden Bakery KSA to provide necessary training that ensures standardization and product body are being implemented.Companies that have a clear training and development strategy will note growth in the following areas, cut turnover well trained employees are more likely to stay with your organization and it decreases the expenses of employing and training costs.Better productivity well trained employees are more productive.Workforce employees will have a deeper understand ing of organization goals and mission, and will know their role in reaching those aims.3.5- The HR Challenges of International ExpansionOne of the very important skills for domestic companies to grow global is the international HR management. As much as it is important for multinational and international companies, it is essential for HR department in domestic companies that recruit people from abroad.Nowadays there are many an(prenominal) challenges that international human resources department has to take into consideration, starting to mention the cultural impacts, the local rules and regulations and finally working conditions and salary packages.HR policies and leadership development should grow since close every business in all sectors risk a life-size share of their growth strategies on global expansion. There are many activities and skills that have become crucial to success. These activities include attracting and retaining skilled employees, increasing productivity, impr oving the workforce in the market, organizing the company by placing the competent and credible leadership in the right positions and moulding the beliefs and differences between personnel.Ethnical preferences and expectations can bring down a companys human resource strategy in globalization and can affect its effectiveness due to the influence of the economy. In order to i