Human resource management is a vital aspect of business operations for a company, regardless of the market or industry that it might be a part of (Deery and Jago, 2015). It has a direct impact on the overall probability of success of the company as well as its sustainability in the market. It is crucial for firms to manage their workforce and keep them happy and satisfied adequately. In this report, various aspects of human resource management for Lundin Petroleum, a Swedish company have been presented. Through this study, the researcher has discussed areas relating to workforce planning, reward mechanisms, staffing approaches and others. Further, particular emphasis has been given to analysing the culture of Germany.
To analyse culture of a society Hofstede’s Cultural Dimensions can be used. It is a tool that focuses on various aspects of cultures. In the following paragraphs, this tool has been used to analyse the cultures of Germany and Norway.
This aspect of the model determines whether or not every individual in the society is treated equally (Gallardo-Gallardo, Dries and Gallo, 2015). It focuses on the attitude of people from different cultures towards inequalities present in society. Germany scores low on the power distance index (only 35). Meaning that, the people tend to question the authority and therefore they attempt to distribute power amongst themselves (Navimipour, Navin and Hosseinzadeh, 2015). Furthermore, people do not like control, and thus they challenge leadership in order to show expertise.
It shows the ability of society to maintain interdependence among its members (Chang, 2015). In this regard, it can be said that in German society the level of individualism is very high, with a score of 67. Nuclear families are very common in the country, as families focus more on developing and maintaining the parent-children relationship than with aunts and uncles. This shows that the level of self-actualisation is very high in the country. Personal preferences and tastes dictate loyalty and a sense of duty and responsibility.
This aspect shows whether or not the society will be driven by competition, achievement and success (Golini, Kalchschmidt and Landoni, 2015). The main focus of this aspect is on identifying and understanding what motivates the people to be the best (masculinity) and liking what they do (feminine). Germany can be considered as a masculine society, as it scores 66 points on the scale. Further, performance is highly valued and even school children are required to perform better, thus increasing the level and intensity of competition significantly. Thus it can be said that the German people feel proud on the basis of tasks and duties that they are able to perform effectively.
This aspect pays attention to the extent to which members of a society feel threatened by unknown or uncertain situations (Abdullah and Zulkifli, 2015). Since Germany scored 65, it can be said that the country has a preference for avoiding uncertain situations. The German people, thus, have a tendency to avoid such situations wherein they do not know the future or are not able to determine what might happen in the future.
Long term Orientation
It describes how society needs to maintain links with its past while dealing with modern day challenges and issues (Cooke and Bartram, 2015). This aspect assesses how society prioritises its goals and targets. On the basis of Germany’s score of 83, it can be said that German society is highly pragmatic in nature and it focuses on the long term. Further, the natives also are able to adapt to changing conditions and also have a strong tendency to save and invest their time and money.
The score of 40 is very low, indicating that the German culture is retrained in nature (Karadjova-Stoev and Mujtaba, 2016). Thus it can also be stated that a low score in this aspect, have a tendency towards cynicism and pessimism. In addition, German society does not like to spend too much time on leisure activities or fulfilment and satisfaction of their various needs and desires.
Norway scored low on this aspect (31), which means that being independent, equal rights, etc. are some of the common traits of the Norwegian culture (Obeidat and Sweis, 2016). In Norway the power is decentralised, and thus the managers rely on experiences of their employees and team members. Use of democratic style is very common in the country, and therefore, it can be said that the people have a very limited connection with power, meaning that the distance is significant.
With a score of 69, Norwegian society can be considered as individualistic (Bird and Mendenhall, 2016). This means that people give more importance to their self attitudes and preferences. Personal opinions are highly valued and respected in the country, and therefore expressing them is very common. Furthermore, direct communication is preferred; while the right to privacy is considered the key to the development of society. Personal and professional lives are kept separate and are extremely valued; while everyone is focused on their progressing their careers.
Norway scores only 8, due to which it is considered as the second most feminine society around the world (Tariq, Jan and Ahmad, 2016). It indicates that the people and institutions value softer aspects of the culture and encourage others to sympathise with one another. In addition to this, caring for the environment is also central to the Norwegian society.
The score of Norway on this dimension was only 50, meaning that there is no specific preference of the people on this aspect (Veluchamy and Krishnan, 2016). The Norwegian people do not pay attention to trying to avoid uncertain situations. This could also indicate that for them this is not a major concern.
Long term Orientation
Norway scored only 35 on this aspect, meaning that the Norwegian culture is more normative in nature (Lasserre, 2017). The people are more concerned with determining the absolute truth, and therefore they tend to follow traditions and customs strictly. In addition, these people also do not tend to save for the future, as their focus, generally, is on quick results.
Norway scored 55 on this dimension, indicating only intermediate relation in terms of indulgence (Rothenberg, Hull and Tang, 2017). On this basis, it can be said that just a little more than half of the population will try to help one another, while the other half does not pay any attention to it.
For any company, regardless of the industry that it might be part of, has to develop and follow a proper reward management system. It is also the key for effectively managing the manpower and ensuring that they are happy and satisfied, as well as able to contribute more towards the attainment of the organisational goals and objectives (Mura, Tvaronavičienė and Androniceanu, 2017). In recent some years with rapid developments in the workplace, as well as intensifying of the competition, it has become all the more important for companies that they have a proper reward management system. Essentially, it can be the differentiating factor between success and failure for business organisations (Tulung, 2017). In the context of the present case, since Lundin Public Health Research Facility is a Germany company, looking to establish its operations in Norway and to hire Norwegian people, it will be all the more crucial for the firm to have a proper reward system in place.
From the Hofstede’s Cultural Dimension analysis of Norway, it can be said that the Norwegian people prefer to develop and progress their careers. On this basis, the cited organisation should give more importance to using intrinsic and non-monetary rewards. Rather the management should provide better career progression for the employees (O’Hagan, Gunnigle and Morley, 2017). This will be the best way for the firm to motivate the employees and ensure that they are happy and satisfied.
Through a properly developed reward system, the organisation can understand needs and demands of the employees in a better manner. Through such information the management can satisfy the employees and also motivate them to perform to the best of their skills and abilities. The importance of a proper reward system for the firm can be understood through fact that it will have to hire Norwegian people, who are very serious about their job and the reward that they get from it. Thus, a proper reward system can be extremely useful for the company and also help the management in managing the employees effectively and keeping them satisfied. Reward system can be the differentiating factor for the company and can contribute heavily towards attainment of its goals and objectives.
Monetary rewards are considered to be highly effective and they can be very useful in motivating the employees and enabling them to give their best towards fulfilling organisational goals and objectives. While the management’s spotlight is on the supervisory group, it is critical to have a solid feeling of the types of acknowledgement—money related and something else—that issue too and spur workers, and how those variables impact culture over the whole association (Paz-Aparicio, Ricart and Bonache, 2017). The truth of the matter is that an organization can have a painstakingly planned remuneration program, and workers might almost certainly discuss the majority of the correct mantras about corporate qualities, yet on the off chance that the manner in which one excels isn't by their accomplishments yet by political moving, savage power, or intemperate hazard taking then that is the thing that will characterize the genuine culture. The atmosphere will be substantially more dominant than any compensation program. The effect of human conduct on spending forms in an association is a settled research stream in the bookkeeping discipline (Chowhan, Pries and Mann, 2017).
This subject is getting a charge out of recharged enthusiasm for the contemporary business condition as globalisation is causing the fast coordination of monetary, political and social frameworks over the globe. The administration of outer and inner condition contrasts is basic for worldwide organisations working in the worldwide field. Specifically, the administration of individual representatives' social contrasts speaks to a considerable test for the board at each dimension of an association, including the readiness, control and correction of spending plans by gatherings of individuals from varying societies (Maharjan and Sekiguchi, 2017). The most persuasive snag that anticipates harmonisation in authoritative planning is frequently identified with culture or, all the more explicitly to the effect of social contrasts on representatives associated with the procedure. Profession prospects, assets and pay rates will be generally founded on the capacities of chiefs to accomplish their financial limits (Kidwell, Eddleston and Kellermanns, 2018).
The management gets extra resources that will allow them to easily achieve their spending's execution and thusly increment material prizes. Fail to achieve a spending target will provoke interventions by the top organisation. Agents who do not meet their spending breaking point might be rebuffed by diminished rewards or miss chances for headway. These disciplines will drive the boss to tackle their execution right now to look even better neglect their execution in the whole deal, and this may make hurt the affiliation in regards to long term profitability (Schmidt, Jones and Bourdage, 2018). In individualistic social requests, individuals lock in order to improve their execution because of credit they may get, however in collectivistic social requests individuals endeavour to improve execution because of the achievements of their get-together. People who work in a get-together may reduce their execution without hardship knowing this transient outcome in execution will be credited to the nonattendance of coordination in social occasion execution. These experiences develop their craving to perform better in a social occasion setting. Collectivists perform ideally in social events over they do out of get-togethers or alone. Furthermore, collectivists see their individual work as satisfaction if they can achieve promise to the social event (Mura, Tvaronavičienė and Androniceanu, 2017).
Managing business operations in an international environment is extremely difficult. There are a number of factors and aspects which have to be considered by the management. Thus it is imperative for the management to have a thorough understanding of not only the firms’ operations but also the market that it is operating in (Navimipour, Navin and Hosseinzadeh, 2015). Herein the role of strategy development and formation is critical, as it would enable the management at the cited organisation to implement a strategy that is best suited for its operations and can also enable the firm to attain success. In this regard, the model of EPRG can be extremely useful. By using it, the management can exactly pinpoint the aspect of strategy that is of utmost importance to the firm and can help in the development and selection of an effective business strategy.
Importance of this tool can be understood through the fact that it helps in determining specific focus of the company and therefore enables the management to manage daily aspects of firms’ operations in a better and more effective manner (Obeidat and Sweis, 2016). It is essential for the cited organisation to deliberately investigate how their firm is arranged and settle on suitable choices pushing ahead. In playing out an EPRG examination, a firm may find that they are situated toward a path that is not valuable to the firm or misaligned with the association's corporate culture and conventional system. For this situation, it would be significant for a firm to re-adjust its concentration so as to guarantee that it is accurately speaking to the company's core interest (Tariq, Jan and Ahmad, 2016).
There are four key elements of this model – ethnocentric, polycentric, regiocentric and geocentric. By understanding each of these elements, the management at Lundin Public Health Research Facility will be able to determine the focus for the organisation. This way they can provide effective direction to the firm that can help it to achieve success and fulfil its targets, along with keeping the employees and other stakeholders happy and satisfied (Veluchamy and Krishnan, 2016).
In the ethnocentric element, people think that their culture and home country is superior or better than the others. In such scenarios, international institutes are not considered to be very effective or useful for the local population. This forces the companies to adapt and develop their products and/or services as per the demands and expectations of the local market. This way they attempt to satisfy the customers and enhance their sustainability in the market (Rothenberg, Hull and Tang, 2017). Furthermore, the locals very rarely try to look for job opportunities other than in their local or national companies. In this sense, it can be said that people feel very proud of their ethnicity and cultural orientation. They try to stick to it for as long as they can. If a company adopts such a strategy, then it needs to find ways through which it can satisfy the local stakeholders. This can be extremely useful in improving its performance (Lasserre, 2017).
Under the polycentric strategy, the management is of the outlook that each market the firm does business in, is unique. In such cases, the head office or the top management holds very little power in the decision-making process, as such power does not lie in the centre (Bird and Mendenhall, 2016). Rather it is distributed among all offices in the country or the region. The focus here is to enhance the capability of every office so that they can manage their operations in a better and more effective manner, along with making them self sustainable. On the other hand, the regiocentric strategy enables the management to develop strategies according to different regions the firm operates in (Tulung, 2017). Herein similarities and differences between the regions are given prime importance.
Geocentric organisations, as really worldwide players, see the world as a potential market and try to serve this viably. Geocentric administration can perceive the likenesses and contrasts between the nation of origin and the global markets. It joins ethnocentric and polycentric sees; as such, it shows the "think worldwide, act nearby" belief system (Paz-Aparicio, Ricart and Bonache, 2017). The geocentric introduction speaks to a union of ethnocentrism and polycentricism into a 'world view' that sees similitudes and contrasts in business sectors and nations and looks to make a worldwide system that is completely receptive to neighbourhood needs and needs.
In this regard, it can be suggested that The Public Health Research Facility should follow the regiocentric approach. Through this, the management can hire as well as source the manpower from different sources. It would help in developing and maintaining healthy and effective working. Herein the cited company will have to recruit managers and employees from different countries surrounding the region where it will be operating (Abdullah and Zulkifli, 2015). Through this approach the firm will have a chance to create a diverse workforce base, thereby enabling the employees to develop better relations with one another. In addition, it can also be useful for the firm, because it can hire people with different backgrounds, cultures and beliefs, thereby making the workplace interesting for the employees. One of the main reasons for suggesting this approach is that the cost of recruitment will decrease by a great margin (Tariq, Jan and Ahmad, 2016). This is due to the fact that the company will be recruiting managers and employees from the local regions only, this it would not have to spend too much on advertising for the various positions. Thus it can also be said that the use of this method will enhance the reach of the company in the target market and among the target customers.
In this report, different parts of human asset the executives for Lundin Petroleum, a Swedish organisation have been exhibited. In the context of the present case, since Lundin Public Health Research Facility is a Germany company, looking to establish its operations in Norway and to hire Norwegian people, it will be all the more crucial for the firm to have a proper reward system in place. From the Hofstede’s Cultural Dimension analysis of Norway, it can be said that the Norwegian people prefer to develop and progress their careers. On this basis, the cited organisation should give more importance to using intrinsic and non-monetary rewards. Rather the management should provide better career progression for the employees.
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