Issues in alignment of organizational strategies and HR strategies
Table of Contents
Questions and answers
A Shaky bridge (An uncertain plan)
The advent of globalization has diversified the work force and increased its cultural differences in many companies across the globe. Publication of information on these trends has led to calls for effective management of diversity in organizations, and observers have advised that unless corporation start managing diversity, they will find themselves at a competitive disadvantage (Copeland 1988; Nelton 1988; Schmidt, 1988). Moreover, invoking what might be termed the “Value-in-diversity hypothesis,” some writers have stated that, when properly used, cultural diversity in the work forces bring value to the organization and ultimately improves their performance. They have emphasised that managing diversity is an economic issue as well as legal & social concern. (Copeland, 1988; Cox & Blake, 1991; Esty, 1988; Sodano & Bailer, 1983) The case is about Sai pharmacy Limited, a Malaysian company started by Mr. Raghunath an Indo-Malaysian in 1991. The Sai Pharmacy limited worked on the alliance and merchandise with Stop and shop which is an existing department store in various cities in Malaysia in the earlier days.
Mr. Raghunath strategically recruited HR from Australia, New Zealand, India, Philippines and Malaysia based on cost of employees and skills available. Employees from Australia and New Zealand are at strategic positions, Indians in second level of hierarchy, Philippinos are appointed as pharmacist and branch managers, and finally Malaysians in equal positions of Philippinos.
The company provides salaries incentives etc. based on hierarchy and national expatriate basis. Despite of modern HR techniques applied by the CEO, employees from different nationalities felt discriminated. So, a work force with diversified nationalities and a level of cultural differences resulting in issues is the case about.
Questions and answers:
1) What is the misalignment among company strategies, HR strategies and cultural issues? A) Mr. Raghunath strategically employed people from various countries based on cost of employees and skills available from various countries. It is also mentioned in the case study that Mr. Raghunath adapts most modern techniques of Human resource management. When the employees feels like there is a discrimination on culture and nationality, management should have the potential to bring out the best from the employees and end discrimination and be ethical. When the work is almost similar then the employees’ salaries and benefits should also be similar. Company policy is to pay employees on their designation as mentioned in the case study, so according to the skill set and experience all the nationality employees should be given opportunity to take responsibility. This will also reduce the cost since employees from other nations can be replaced by local employees with same skill set and experience.
2) Can you identify any problem in sourcing the employees from different countries? A) The company provides salaries incentives etc. on hierarchy and national expatriate basis. This led to a feeling of discrimination among the employees from Malaysia and Philippines The employees of Malaysia, particularly pharmacists, feel that they r discriminated and paid less even though they do the same job like the pharmacists from Philippines. On the other hand, philippinos have a strong feeling that they are also discriminated against Indian employees. They contribute the lions’ share of profit to the company as pharmacists. While all the other employees believe that salaries are not based on the nationality of the employees, but based on the significance of...
References: Copeland, L. 1988. Valuing diversity: Making the most of cultural differences at the workplace. Personnel, 65(6): 52-60
Cox, T., & Blake, S
Esty, K. 1988. Diversity is good for business. Executive Excellence, 5(1): 5-6
Nelton, S. 1988. Meet your new workforce. Nation 's Business, 76(7): 14-21.
Schmidt, P. 1988. Women and minorities: Is industry ready? New York Times, October 16: 25-27.
Stewart, Thomas A. (2004). Intangible Assets Introduction [Electronic version]. Harvard Business Review, June.
Ulrich, Dave, & Smallwood, Norm
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