Human Capital In International Companies Management Essay

charitable Capital In International Companies Management EssayTo boom internation onlyy, arises variant problems and ch altogetherenges for HR managers in homophile resources incision. It is more difficult to manage employees abroad, than if employees were in the al-Qaida base.The growth of wooden bakehouse internation whollyy determined crude assignment and tasks. thither is a need to successfully manage this for the benefit of twain wooden bakeshop and the individuals.The paper observes the change from domestic to international HR management, which examines issues of culture, contracts, agreements, recruitment process, and hire in woody bakehouse expansion to other countries. All the same, the paper discusses suggestions for HR managers, which involve heathenish research, and the functions of selection, gentility, surgical process management and remun eontion.In this new era of globalisation, international military personnel resource management is becoming a vital concept for human resource managers to be able to practice human resources functions, scratch line to mention, recruitment selection, carry outance appraisal, compensation benefits, prep development and finally employees relations. This is important for human resource managers in multinational corporations and alike in domestic base human resource managers who import employees from overseas.To stay updated with the changing world, human resource managers willing 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 participate more effectively in the market place, and is a developing tool for its employees. smash 1 IntroductionHuman Resources DefinitionHuman Resources is not only involved in paying the employees their salaries and providing them with the benefits however it comprises one of the organizations important resource that is the Human resource d one hiring, training and developing and nigh(prenominal) importantly retaining them for the benefits of both parties.Human Resources refer to the policies, systems and employment practices that atomic number 18 utilise to attract, motivate, develop and retain firms employees. In other words, human resources is considered as an organization function, that focus on recruitment, providing career path for the passel who oeuvre in the firm, and push-down stores with personnel issues such as hiring, compensation benefits, performance appraisal, safety, employees motivation and finally training development.Human resources is no longer a traditional personnel, and administration, however Human resources role is more strategical and deal with strategic aspect, to make accepted that employees contribute effectively and laming in parallel with the company direction to achieve the firms goals and objectives.Human Resources functions are common to most(prenominal) firms, primary by attracting talented people by recruiting and selection, secondly retaining talented people by wage and salary, benefits and employees relations and finally developing the people by training, development and performance appraisal.Nearly ein truth company says itHuman Resources importance and Need in International CompaniesThe Human Resources department is important in all multinational and international companies. Recruiting and selecting is one function completed by HR, and their main responsibility is hiring and retaining companys most important asset that is our PEOPLE.Failure to do so, and lack of strong, make and satisfied employees, working in the right place in a firm will leads to hiring the wrong people, high upset, employees will not do their stovepipe in their jobs and having some candidates demotivated. Thus, without good employees, the best business be after and vagarys will be unsuccessful.As well, Human resources take care of all the employees concerns, make su re to solve employees issues immediately and to track down 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 understand that all ply is performing their jobs efficiently and toward the organization goals and objectives. Accordingly, Human Resources Manager evaluates all the employees, reward, takes disciplinary actions or dismissal.Another important role under 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 way the HR will improve the organization reputation, credibility and commitment from staff, thus become an employer of choice and reduce turnover.In this world of globalization, and companys expansion to other countries, Human resources adopt new cultures, and take care of all legal requirement s as per the new country rules and regulations, as well as managing payroll, and other presented benefits.As per the strategic approach, human resources play an important function in developing an organization strategy, and managing the employees activities.Part 2 psychoanalysis of the Organization2.1- Wooden bakeshop HistoryWooden Bakery was gear uped in Jal El Dib Lebanon in 1969 by Mr. Edward Bou Habib. It was a simple Bakery providing the market with freshly baked bore Bread.In the last decade Wooden Bakery literally revolutionized the bakery industry in Lebanon by setting new standards and upgrading its products and services.Edwards two sons Assaad and Ghassan Bou Habib planned and designed the new concept on paper in 1996. With immense vision and an innovative spirit, Wooden Bakery developed a unique concept gathering Bread (of all kinds), Pastries, Sweets, Sandwiches, Salads and Deli.The first Wooden Bakery Outlet opened at Zalka highway in October 1999.Wooden Bakery laun ched the first franchised operation in 2002 and expanded to 26 franchised outlets in Lebanon by the contain of the year 2012.Wooden Bakery opened the first predominate licence Operation in Saudi Arabia in July 2009, and currently negotiating the sale of the subordinate Franchise with a number of companies from the GCC countries.The Concept of the FactoryWooden Bakery system revolves around a state of the art industrial baking facility. It includes the latest and most advanced machinery and equipment in the baking industry.Human Resources department make sure to hires top Master Bakers, Pastry Chefs, and highly qualified Managers and lineament Controllers to assure the freshest and most consistent products for our markets.The Wooden Bakery actory produces from 100 to 150 tons of flours per day depending on the market need and factory size.Wooden Bakery is the in the lead supplier of high quality Freshly Baked Arabic Bread in the Lebanese market.The Wooden Bakery Factory is ca pable of hang oning a large number ofArabic and European Bread ProductsBread SticksDry Desert ProductsFrench Pastry CakesCakes for any occasions (Wilton Cakes)Croissants and DanishesArabic SweetsThe Wooden Bakery Factory houses a central kitchen facility which produces Mixes and Semi Finished Products for the outlets such asMarinated Chicken and BeefCheese BlendA Variety of Mixes and Blends wintry 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 can profane Fresh enthusiastic French and Arabic Bread, French, Arabic and American Sweets.The Wooden Bakery Outlets offers all mentioned products at Competitive Prices and offer a warm atmospheric state done its Unique Design, Clean Safe Environment and Excellent Service for its customers.The Wooden Bakery Outl ets 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- flushary work and VisionMission StatementOur mission is to push our forepart and create a distinguish in the Bakery Industry by Offering MORE and Delivering BETTERVision StatementOur vision is to dominate the market by building 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 ExpansionWooden Bakery first Outlet opened at Zalka highway in October 1999.The first Wooden Bakery franchised operation launched in 2002 and expanded to 26 franchised outlets in Lebanon by the e nd 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 tinge however surpass the Saudi customers expectations.The Bread Factory Outlet was built on a 10,000 m2 space to house all the production equipmentthat willsupply Bread and Pastry products and Central Kitchen Food Productio n 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 showroom with an eating area and a restaurant.Wooden Bakery has received the award for the Fastest Growing Lebanese Company at the prestigious Social Economic Award 2011, instituted by the global communications agency First Protocol to recognize outstanding achievements by organizations in the social and economic sphere.Today, the name of Wooden Bakery not only spells trust 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 mission, proving that Wooden Bakery is fitting of the award that comes as a natural translation of its ever-expanding drive to Offer More and Deliver Better.2.4- Wooden Bakery SWOT 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 roadstead in strategic areas)All outlets have the same imageProduct assortediation in the PRESTO section sandwiches. Ex. Rustic BreadCustomers loyalty step (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(a) expensesFranchise operated outlets might not have same level of loyalty as the outlets owned by Wooden BakeryIncrease in rough materials and labour greetsNot every franchised store owner get involved in the PL statementNo direct authorityHigh start-up costDelivery ServiceAdvertising plan to increase sal es through brand awarenessFamily BusinessOpportunitiesMarket trend turning bakeries into a wider shop outletsHealthy eating trendOpening new and international markets bran-new 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 department used to work the traditional personnel management tasks, generating payroll and registering employees in NSSF.The Main human resources achievement was shifting from personnel management to human resources management, implementing all human resources functions, and be more involved in Wooden Bakery strategic plan.Human Resources department today mainly concentrates on recruitment, management, and providing direction s 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 accomplish 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- enlisting and SelectionThe ability of Wooden Bakery to achieve its objectives of profitable and sustainable 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 represent a critical function in the companys development. It is therefore important that a die recruiting mechanism is established in order to optimize applicant selection, while supporting Wooden Bakerys strategic orientation and values.Proper and professional recruiting is necessary in order to avoid undesirable effects, includingNegative publicity or damage to the companys imageWasted time and effort to interview applicants who do not meet Wooden Bakerys needs terms 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 Orienting.The recruiting process is divided into trey phases Pre-recruiting, Recruiting, and Post-Recruiting. It involvesPosting a job advertisement in appropriate placesEvaluating the info provided on each applicationScreening candidates to determine which ones to interviewVerif ying references and informationConducting personal interviewsDeciding who will be offered the jobOrienting the new employee about the organization3.2.2- Performance appraisalWooden Bakery use a new assessment concept for evaluating employees, 365 Evaluation, that is created to monitor and evaluate the productivity of Wooden Bakery administration and management staff throughout the year.The concept covers three different aspects and tackles employees productivity by looking atMissions accomplished ( periodical Evaluation)Key performance indicators (KPI) (Quarterly Evaluation) annual competency evaluationThe theatrical role 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 res ults through monetary terms (Salary increase, Promotion, Bonus, etc.)Identifying newly acquired competenciesPreparing employee development plansPlanning improvement where deficiencies are foundGoal-settingCommunication between supervisory programs 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 nameDate DurationDate of registering the idea and expected mission durationOwnerThe employee who created the idea and who is the custodian for its implementationDepartmentSelf-explanatoryMission Scope ObjectivesScopeis the sum total of all products, services and outcomes needed 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 i nvolved and needed for the completion of the mission and the designed authority distribution2-Mission ProgramTask BreakdownBreakdown of tasks and assigning a start and a duration for each task skip over Duration3-Mission Kick-off RegistrationOwner 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 EvaluationScore for InnovativeAt the completion of the mission, the owner has to get the established 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 audit departmentOnce rated by the concerned VP, the mission score is registered by the HR in the Mission Tracking System.The internal Audit team is authorise 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) aspectsAttendanceMission AccomplishmentPolicy and Procedure Development (creation and implementation of new procedure)Introduction of Improving Ideas (Cost salve ideas Process ameliorate ideas)Productivity Measurement (Vary from one department to another each department will be evaluated by using 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 with Wooden Bakery. The feedback 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 also be utilized in a progressive disciplinary process to resolve continuing poor performance.3.2.3- Training and developmentWooden Bakery progress 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 in cludeOrientation training,Orientation training is the process Wooden Bakery use for welcoming a new employee into Wooden Bakery family. New employee orientation, often organize 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, groundwork 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.Sometimes 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 doed by Wooden Bakery administration employeesRD Technician and RD Man ager were sent in 2010 to Las Vegas to attend Baking Industry Trade mediumProduction 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- Compensation and benefitsThe term compensation in Wooden Bakery refers to the wages used to reward employees. As for benefits, Wooden Bakery offers paying(a) 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 following will be definedThe Minimum, the Middle, and the Maximum fixed salary slogThe 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 good-looking an accurate grade based on numerical studyKnow HowTechnical KnowledgeManagement ExtentHuman RelationsHighest Education directProblem SolvingReasoningDecision MakingCommunicationInfluence on OthersAccountabilityFreedom to ActMagnitude of ActionImpact of Decisions functional ConditionsLong Working HoursWorking during HolidaysExtensive 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 old age spent in each level)Performance approximation RecommendationsAcquiring Additional Skills (Experience and Education)Top Management DiscressionMoving vertically is governed by different factors includingPerformance Appraisal RecommendationsAcquiring Additional Skills (Experience and Education)Avail ability of the vacancy3.2.5- Employees RelationsWooden Bakery promotes a positive atmosphere, and encourages positive relations between employees, to be able to contribute the organization goals and objectives.Employees Relations is concerned to prevent and resolve problems involved by employees which arise out of or might 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 remediate 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 performance. 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-disc riminatory and which is Fair consistent and effective. It must also be applied in a timely manner and without undue delay.3.3- Human Resources Planning for spheric 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 seeking 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 consideration 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 cou ntry laws, rules and regulations, which might be far different from our country of origin and which may seem 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, rift pay, etc.The differences stated earlier will mandate that the total packages offered abroad are tangibly higher than those offered within the Lebanese region.Thus, the existence of all the higher up 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 strategy requires having the right people in the right places it requires specialized leadership skills-managing the work of people with different backgrounds and customs.3.4- Global Expansion Requires New HR and Training StrategiesRecently the r ole 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 competitive 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 majority of companies have the passion and commitment, 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 consonance are being implemented.Companies that have a clear training and development strategy will note growth in the following areas,Reduced 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. men employees will have a deeper understanding 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 manag ement. 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 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 almost every business in all sectors risk a big 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, improving 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 weaken a companys human reso urce strategy in globalization and can affect its effectiveness due to the influence of the economy. In order to i