Home Furniture Ltd was set in 1970 in Finland.The company has grown and it is known for the sale of affordable furniture globally. The company originally concentrated in Europe but it has ventured to other parts of the world such as America and the middle east. Therefore, the company is faced with emerging issues in human resource management. Different countries have different cultures and therefore the company has to adopt innovative strategies on how to operate in different countries with various cultures. Since the company employs more than 1700 people from different cultures and religion, cross cultural management is in handy for the progress and prosperity of the company.
The unprecedented growth and global expansion of Home Furniture Limited have generated the enormous challenges of cross cultural management as well as an array of human resource management challenges. In this regard, the company has to adopt a paradigm shift in such a way that it can address the challenges it faces in time. The reason is that efficient management of the company influences its future growth and prosperity. Therefore, this paper takes a critical analysis of the Home Furniture Limited case and then offers the recommendations on how to deal with the highlighted challenges.
First policy: Recruitment policy
In the current rapidly changing global market, an organized recruitment strategy is good for a company to take action which addresses human resource issues. Therefore, the new CEO of Home Furniture Ltd is good to implement a well thought human resources staregies, that is used to recruit good employees but a gain check the balance of all people from different background so as to appreciate the need for the cross cultural workforce. A good cross cultural management policy is very critical of the company since it enables the company to handle cross cultural emerging issues efficiently.
Component of an efficient recruitment policy
Terms of the organization- It should have a well thought organizational term of recruitment procedure. Recruitment services of the consultant. It is important that the company employ the services of a competent recruitment agency. In addition, recruitment of temporary employees should be adequately looked into. Therefore, the policy adopted in Africa, China and the US should stipulate that even temporary employees should be from all different cultural backgrounds in the host country. It is also prudent to note that, the e selection process should be competitive so as to give opportunity to all people in the society. Moreover, the job description should cater for the interest of all workforce from different cultural background
Factors to incorporate in recruiting policy
Government policy. The policy should be harmonized in line with government policy on employee recruitment. Secondly, the cost of recruitment should be relatively affordable so as to reduce high expenses. In this regard, a recruitment policy to be adopted by Home Furniture Ltd should be such that: it emphasizes the need to recruit the best potential people from all cultural backgrounds in the host country. In Africa, more in Tunisia, Kenya, Nigeria, morocco just to name a few, the government recruitment policy requires that a company employee should reflect the cultural diversity in the country. In this, the regard, the CEO recruitment strategy should actually embrace the cultural diversity in these countries. This will go a long way in fostering harmony in the company.
In addition, the US recruitment policy also calls for a competitive employee selection process which is non bias and appreciate cultural diversity in the country. It is therefore prudent for the CEO of Home Furniture Ltd to ensure that recruitment policy adopted in the US is competitive, efficient and embrace the essence of cultural diversity.
Effective Communication Guideline
Effective communication is critical for the success of a company. In this regard, Home Furniture Ltd is bound to ensure that it not only adopts an effective communication but also ensures that there is harmony among the employees. However, it should be noted that effective communication is an integral part of harmony and greater performance. Effective communication should follow the following guidelines:
Effective communication given should be clear in the mind of the sender which in most cases is the mangers or the CEO of the company. The communication should be simple and straight forward. In addition, workers of diverse cultural background should not be incomplete but it contains facts and observations. In this regard it should be properly planned and organized. Therefore, communication should not have assumptions. Furthermore, the management should always empathize with the all employees from all backgrounds.
Formal and informal communications with operations
A company should use memos and official letters in conveying official information. However, there is the use of social networks among the employees. In this regard, the company should use official Facebook page and website to communicate continuously to avoid unofficial communication.
Control of informal communication.
The company should control informal communication through continuous updating the employee through formal communication channels which include: use of memos, official emails and official letters. A proper management of unofficial communication is quite important in a cross cultural set up in an organization. This is because cross cultural employees call for proper communication for a harmonious relationship.
Areas the organization need to improve.
The company should improve its communication and cultural diversity management. This is because communication is a powerful tool to smooth running of the company. Secondly, motivation of employees is also a critical aspect which the company should look into.Motivation improves productivity as well as harmonious coexistence. The use of modern technology such as social network can be upgraded to embrace formal communication. For instance, the use of twitter handle and Facebook among others.
Effective Communication Case Study Analysis
Public relations and effective communication play a pivotal role in crisis overcoming not only in the companies but also in other organizations. The growth of Home Furniture Limited has generated a crisis, which presents the real impact of public relations and effective communication on the decisions and changes in public perception. Public perception is extremely important in the maintenance of customer loyalty to the product as well as in marketing.
Keep It Simple
It is prudent to note that communication should be simple and clear. This because not everybody speaks English. In this regard, the CEO of Home Furniture Ltd should should adopt cross-cultural communication, which lear, simple and unambiguous. Simple and clear communication not only promote harmonious coexistence in accompany but it also enhances productivity.
Understanding Cultural Diversity
Without going deep into cultural values, it is quite critical for the CEO to recognize that a primary knowledge of cultural diversity is very important to effective cross-cultural communications. Therefore, it is prudent for the the company’s CEO to study the host country’s cultures and languages in detail. Learning how to communicate with people of different cultural diversity calls for proper knowledge of such cultural diversity. Effective communication is extremely important in the organization’s running (Fielding 2005). It involves sending of relevant information to the required person without any problem. There are several benefits of effective communication. These benefits include good relationship and proper understanding among others. To the organization, communication is critical in many ways. For instance, effective communication is used to motivate the employees, change the public perception concerning a given product. In the case of Home Furniture Limited, effective communication is critical to regain the tarnished image of the company, which was the result of allegations made by NGOs concerning the working conditions in some countries. The CEO should use the media to explain clearly the reality on the ground. In this regard, the company should use the well organized advertisements and press release, which will not only refute the allegation but also show the perspective of the workers themselves in those countries.
Different Publics Targeted by the Company
The involved targeted public should be internal and external. Home Furniture Limited has an obligation of convincing both the internal and external audiences regarding the launched allegation against it. The success of this communication strategy will require the participation of employees. The recognition of the employee role should be emphasized in any company as a key stakeholder group, with which it is necessary to solve the corporate crises. It should be noted that this can cause enormous pressure and uncertainty on any affected company and its employees. In order to avoid rumors, false information and unfounded allegations, all external and internal publics have to communicate with one another. The companies should never underestimate the role of effective communication during crisis (Daniela, Radebaugh & Sullivan 2011). The companies, which ignore the importance of employee, normally bear the significant economic damage due to the lack of trust, low morale, and subsequent loss of dedicated workforce.
The Company Should Enhance Employee Health and Safety
Globalization and dynamic nature of the workplace has created an overwhelming pressure on both the employers and employees in the organizations (Pears 2009). The work-based pressure has negative effects on the employees. In addition, the increase of expenditures in health care across the world has led to unprecedented interest in the workplace-based disease control and prevention (Hoeger, & Sharon 2008). This is a good strategy geared towards the improvement of employees’ health as well as the reduction of costs. In addition, the employees’ safety is critical for smooth operation of the organization (Walker 2005). It is also prudent to note that the employees form a significant part of an organization. Therefore, their health and well being is not only critical but also beneficial for both the employers and employees in the organizations (Busse 1992).
Adoption of Healthy Life of High Productivity Wellness Program
Healthy life for High Productivity Wellness Program for the employees and employers is a joint partnership of health experts and organizations in a wider scheme in order not only to promote employees’ wellness but also reduce the cost of health care through prevention. This wellness program is designed and envisioned for the engagement of all employees in individual wellness and a vibrant, healthy and balanced lifestyle. In addition, the program provides the resources that enhance the need to maintain high quality life. Healthy life for High Productivity Wellness Program Initiative is a collaborative partnership of health care experts with the goal of helping the employees and employers along the path to an effervescent, healthy and balanced lifestyle.
The Improvement of Organizational Performance by Stimulation
The success of any business is tied to the level of employee motivation (Green 1992). The human resources are critical for the prosperity, productivity, and performance of a company such as Home Furniture Ltd. It is prudent to note that motivation plays a pivotal role in the creation of an environment, where the employee’s optimal performance is achievable. Every one has his own set of motivations and personal incentives in order to work hard. Some employees are motivated by recognition, while others are motivated by monetary incentives. Whatever the motivation strategy will be, the important factor in the development of any motivation is to have a greater insight of the incentive as a manager. Indeed, the employee motivational programs help in ensuring the workforce feels valued and worthwhile.
The understanding of the employee attitudes and perceptions enables better management in the organization. The moral benefits are immeasurable that accrue, when the workers are motivated. They do not only become motivated and also artistically motivated. Therefore, this leads to the good production level in a company. The understanding of the attitudes and perceptions in psychology enables better management of employees in the organization. The attitude is simply the mental state of readiness attained through experience that influences the individual’s response to all situations. It involves the personality, beliefs, values, and behavior of the individual.
Home Furniture Ltd is faced with a gigantic task to meet the customers’ demand. It is critical that the employees will be effectively involved in a program designed with a purpose to curb this problem. In order to ensure that the employees are properly motivated, the company should come up with the three motivational packages of a program geared aimed at the raise of employee morale. The strategies involve monetary reward for all employees under their merit, dedication and hard work. The second motivational strategy includes promotion and recognition. This will be done using the gifts and certificates. Finally, the third strategy ensures the favorable working conditions at the workplace. The repercussions for execution of these plans involve the increased cost of operations and the employee training in order to cope with changes in the company. Therefore, the company will have to spend more money for the execution of all plans successfully. In addition, the employee may fail to recognize the motivational packages and, hence, make the plan ineffective. In order to mitigate the repercussions mentioned above, the company has placed a strategic plan and budget for the execution of these plans. Secondly, the training for change management in the company will be facilities to ensure smooth and gradual change towards the reduction of waste for determent.