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Strategic Human Resource Management

EXECUTIVE SUMMARY

The following report discusses the Human Resource Management (HRM) of Top Glove Company’s roles and responsibilities in relocating the company from Malaysia to the U.S. The introduction provides information about the U.S. and its favorable business environment, healthcare penetration, and advanced technological base, which makes it an ideal location for the company to relocate to. It also introduces the general roles of the HRM department in a company. The roles include recruiting and selecting employees, developing talents, and retaining employees in the company. The literature review gives an account of the responsibility of the HRM and its duty in helping the company relocate to the U.S. The strategic analysis of the U.S. to determine its viability as a new location for the company indicates that it has a diverse economy and multiple industries, which are potential business partners for the company. In organizing the workforce, the HRM is tasked with conducting a thorough analysis to determine the company’s staffing needs to relocate to the U.S., sourcing the employees, training and skills development, and creating a remuneration package. There is also an analysis of the departmentalization of the company, which is dependent on the product and services offered in the company and customer needs. The report also provides the safety and health requirements of the company as required by OSHA and the legal implications as required by employment and tax laws. The HRM will be prompted to provide attractive compensation and incentive packages to retain the workforce and keep the employees engaged. Finally, it is recommended that the HRM familiarizes itself with the legal implications of the U.S.’s complex federal laws on companies and create relocation packages for employees who will relocate to the U.S.

1.0 INTRODUCTION

1.1. Introduction

The U.S. would be a perfect country for the Top Glove Company to expand to due to its large market, favorable business environment, and the fact that the U.S. has a strong healthcare industry which would provide a big market for its products. The U.S. has a large market offering significant opportunities for the company to expand its customer base. The U.S. has one of the largest world economies and has a population of over 330 million people which means translates to a high demand for gloves in various industries, including healthcare, food, and manufacturing (United States Census Bureau, 2022).

The U.S. has a favorable business environment due to the developed infrastructure and business-friendly environment. The country is among the top five largest economies in the world and is well-equipped in terms of transportation facilities and buildings, which would favor the company’s relocation. Besides, it has a business-friendly environment for foreign investors owing to the various incentives and subsidies offered to foreign companies that are establishing expansions by the government. The company would, therefore, be assured of reduced costs of establishment and improving the customer baseline.

The U.S. also has a strong healthcare penetration which translates to a large customer base for the gloves produced by the company. Healthcare is one of the most prioritized industries in the U.S. due to various government policies that advocate for quality healthcare services. The demand for medical gloves is, therefore, high and will increase as the number of medical centers increases. The growing demand and supply for medical gloves will provide the company with a growing market for its products.

More so, the U.S. has a strong technological base and is a key leader in technological advancements in the world. By expanding into the U.S., the company could benefit from technologically advanced manufacturing processes and consequent improvement in product quality (Getzoff, 2022). Besides, the company could benefit from the skilled workforce of the country, which is well-versed in production and company management owing to the committed education institutes in which the workforce is trained. The U.S. has top education and research institute which can collaborate with the company to establish highly reputable products, solid business strategies, and a strong brand presence that will increase the company’s potential for success in the country. Careful evaluation of the above strategies would establish a strong presence for the company in the country, which guarantees its success.

1.2. Human Resources Management

Human resource management (HRM) refers to the strategized and coordinated approaches taken by organizations for the management of their workforce. The aim of HRM is to recruit, select, train, develop talents, and retain employees in the company (Akunda et al., 2018). It plays an essential role in ensuring that the workforce upholds the company’s culture, values, and success.

In its recruitment role, HRM is concerned with evaluating the company, identifying job vacancies, and strategizing on attracting skilled personnel. Job vacancy posts are advertised on relevant channels, and relevantly skilled individuals are encouraged to apply for the jobs. HRM then selects the best candidate out of those who have sent their applications. They ensure that the recruitment process is done fairly and transparently to ensure that they hire the most qualified individual. The selection and recruitment process is a key activity since it ensures that the organization attracts and adds the most suitable employee who will take part in helping the company meet its objectives.

HRM is also tasked with the roles of training and developing the talents of the workforce. It ensures that the employees in the company have the necessary skills and know-how to do their jobs effectively. The HRM identifies the training needs of a certain department in the company, develops a training program, and gives the employees a chance to upskill. Similarly, the HRM is tasked with the role of ensuring that qualified and competent employees are maintained in the company so that, when necessary, they can be promoted to further push the company to meet its objectives.

It is also the role of the HRM to maintain employee relations and work on performance management. Under employee management, the HRM works to maintain a healthy relationship between the company and the workforce. It ensures the company has well-established policies and procedures that promote a healthy work environment. It also ensures that no employee is discriminated against based on gender, race, and other variables. The function of maintaining healthy employee relations ensures that the company has a motivated and satisfied workforce that is intrinsically motivated to help it achieve its goals (Budhwar & Mellahi, 2018). In a similar way, the performance management function deals with setting performance standards for the employees and monitoring whether the standards are met. It also involves giving the employees feedback on their performance and helping them identify their strengths and weaknesses and the areas they should work to improve on. Besides, the HRM ensures that it maintains fairness and transparency during performance evaluations to ensure that it rewards top-performing employees and, at the same time, encourages the poor-performing ones.

2.0 LITERATURE REVIEW

2.1 Introduction

HRM plays a crucial role in the relocation of a company’s operations to a foreign country. It is concerned with the recruitment and selection of employees in the foreign country, training and development of new talent, ensuring that the company complies with the laws of the new country, retaining employees, and establishing and maintaining effective communication channels between the two countries (Stone et al.,2020).

On recruitment and selection, it is the role of the HRM to recruit and select the best talent in the new country to ensure a strong kickstart of the activities of the company. The HRM, therefore, develops job descriptions for new positions, advertises job vacancies, screens resumes, and conducts fair and transparent interviews to ensure that they get the best candidates (Boon et al., 2019). On the other hand, during training and development, the HRM ensures that the new employees are trained on what is expected of them in the company. The employees are given an orientation into the company’s culture and business practices, and they are also given job-specific training.

To ensure compliance with the law, the HRM ensures that it gets all labor and business regulation laws that may affect the performance of the company in the country and the transition in the new market. The important laws include laws on business contracts, labor laws, payroll laws, health and safety laws, and employee benefits laws (Boon et al.,2019). As a result, the HRM is expected to identify the various cultural differences in the new country and tweak its policies and laws depending on the requirements of the new country.

Besides, the HRM is tasked with the role of ensuring that the employees it recruits are retained in the company. The role ensures that the company maintains a positive image in the new environment and attracts more talent, thus increasing the chances for career growth and consequent growth of the company. Besides, HRM is expected to recognize and reward employees who have exceptional performance and help those struggling to improve. The HRM also ensures that there is effective communication between the expanded brand and the main brain in the parent country. Similarly, the HRM develops cross-cultural communication strategies to ensure that they all understand the policies and practices of the company.

2.1.1. Strategic Intelligence on the New Locality

The U.S. is one of the largest economies in the world. In 2021, it had a GDP of $21 trillion, according to statistical analyses done by the International Monetary Fund (IMF, 2023). The high GDP shows a large market opportunity for companies seeking relocation to the U.S. Similarly, the high GDP shows that the economy is competitive owing to a large number of diverse industries in operation. It is, therefore, very important that a company that seeks relocation to the U.S. thoroughly analyzes the competition landscape, differentiation of products, and how to gain a competitive edge in the market.

The U.S. economy is also diverse owing to the multiple industries in various fields, such as technology, finance, healthcare, and manufacturing. The diversity provides companies seeking to expand into the U.S. a ready market whose needs could be met with the already available products of a modified version that could provide more utility (Grullon et al., 2019). However, the diversity in the economy poses regulatory restrictions for companies seeking to enter the U.S. market since they will be required to comply with multiple regulatory requirements specific to each industry.

Owing to the diverse economy, the U.S. has multiple global companies such as Walmart, Amazon, and Microsoft, among others, which create opportunities as well as pose threats for companies seeking relocation to the U.S. The diverse companies provide the potential for relocation of the new companies in terms of partnerships and mergers with the new companies. On the other hand, the companies may have a huge market power which may make it difficult for the new companies to enter the market and gain a large customer base.

2.1.2. Organizing the New Workforce

To organize a new workforce for the relocation to the U.S., the company will be prompted to first analyze the staffing needs of the relocation to the U.S. The analysis will take into account the necessary skills, experience, and specific qualifications for each role (Budhwar & Mellahi, 2018). It also requires an estimation of the number of employees that would staff the new location. A clear evaluation and identification of the skills needed to meet the company’s relocation requirements will prepare the company for success in the new location.

The second step involves the development of a comprehensive recruitment plan which includes where the employees will be sourced and how they will be attracted and retained in the new location. The plan will ensure that the rival companies and the labor markets are taken into consideration to ensure that the company has a better chance of attracting highly skilled applicants. Case in point, the company should create competitive salary and benefits packages, flexible work arrangements, and more incentives to attract highly skilled employees.

Next, the company should begin recruiting and selecting candidates for various positions. The HRM is involved in recruitment and selection. It is responsible for making job postings, conducting interviews, and identifying skilled and qualified candidates for the position. Ultimately, the goal for the company’s HRM in this step is to ensure that they hire highly skilled employees who are perfect for the respective roles. After obtaining the new workforce, the HRM is expected to develop a strategy for conducting orientation for the employees and training them. Depending on the policies of the company, the HRM will conduct job-specific training to introduce the employees to the company’s policies and procedures and get them upskilled for their various roles. More so, the HRM may keep the employees enrolled in longer training programs to ensure that they continue to receive training on specific roles.

2.1.3. Training & Development

To train and develop employees for the U.S. relocation, it is imperative that the HRM identifies the key skills and competencies required, develop a training plan, identify and employ various training methods and provide more support for the employees to help them develop their skills (Akunda et al., 2018). The HRM can identify the skills that the new workforce requires for it to fit in relocation and work to drive the company to success. Some of the key skills include job-specific, communication, and problem-solving skills. The identification will also help the HRM develop a training plan. The training plan includes the objectives of the training and the methods that the HRM will use to train the employees. It also involves identifying the resources required for training and the duration of the training. Next, the HRM can identify the various methods that can be used to train the employees. The training methods depend on the skills that the employees are being trained on. For instance, the HRM can settle for classroom training in case of training on company policies and regulations, on-the-job training in case of specific job training, and workshops in case of further development of skills (Karim et al., 2019). Finally, the HRM is expected to support the employees in improving their skills and competencies. The support is provided through mentorships, regular feedback after performance appraisals, and keeping the workforce motivated and engaged. To ensure that the training and development strategies meet the intended objectives, the HRM can conduct assessments and surveys to gauge employee satisfaction and identify areas that require adjustments and improvement,

2.1.4. Total Remuneration Package

The total remuneration package for the company includes the salary and benefits for employees, including health care insurance, retirement plans, bonuses, and stock options. The U.S. government’s medical insurance packages allow employers to provide medical insurance for their employees (Schulman & Narayan, 2023). The company will also offer incentives to attract and retain top talent. The incentives will include performance-based bonuses and equity stakes. More so, the company will allocate resources for marketing, advertising, and business development efforts and operational expenses such as rent, utilities, and any other equipment.

2.1.5 Departmentalization

Departmentalization refers to the process of grouping activities and functions into departments within a company. Departmentalization would enable the company to organize its resources and personnel in a way that ensures that the company’s resources are organized to promote growth and scalability (Ahmed, 2017). For departmentalization, the HRM will consider aspects such as functional, product, and customer departmentalization. On functional departmentalization, the HRM is prompted to group tasks based on their functions. For instance, it may consider the accounting, marketing, human resources, production, and operations functions of the company and put them in relevant departments.

Under product departmentalization, the HRM considers how the company will group its resources based on the products and services offered by the company. It will ensure that every range of available products and services is taken care of in a specific department. Similarly, the company groups its resources and products based on the needs and preferences of the customers. The strategy will ensure that the company maintains a good connection with its customers, gets to know their needs, prioritizes them, and increases the customer base (Ugoani, 2021).

2.1.6. Safety and Health

The HRM will consider the safety and health standards set by the U.S. regulatory bodies. For instance, U.S. companies are required to comply with the Occupational Safety and Health Administration (OSHA), ensuring that all companies maintain quality safety and health standards (Michaels & Barab, 2020). Besides, upon relocation, the government will conduct thorough evaluations to determine whether the company has environmental hazards such as air and water pollution, waste, and risks of chemical exposure. The HRM will, therefore, be prompted to ensure that the company has no potential environmental health and safety hazards before relocation.

The U.S. government also ensures that the company ensures the safety and health of the employees through the company’s ergonomics considerations and emergency preparedness. The HRM has to ensure that the design and layout of the new location are ergonomics-friendly for the prevention of work-related injuries (Rosner & Markowitz, 2016). Besides, the company should have a comprehensive emergency preparedness plan, including evacuation procedures and contingency plans in case of danger.

2.1.7. Legal Implication

While relocating to the U.S., the HRM should consider legal implications on the company’s business structure, immigration, employment law, and tax law. On the business structure, the company is required to register with the state and choose its legal structure depending on whether it is a company, a corporation, or a limited liability company (Flaaen et al., 2020). On immigration, the company will be required to consider immigration requirements, including visas, work permits, and legal documentation for the employees, as required by the U.S. government. On employment law, the HRM will ensure compliance with the employment laws of the country, including minimum wage and anti-discrimination laws, and establish policies that will ensure employees’ rights are protected (Shapiro,2019). Finally, there are legal implications on tax law. The company is, therefore, required to understand and comply with federal, state, and local taxes laws.

2.1.8. Workforce Retention

To ensure that the company retains its workforce in the U.S., the HRM is required to communicate early and often with the employees to maintain transparency and to keep the employees in the know of what is required of them. It is essential that the HRM maintains open communication on the relocation plans and any changes in roles and responsibilities before the relocation (Hines et al., 2020). More so, it is important that the HRM offers the employee relocation assistance so that they have a smooth transition into the new location. The HRM can offer assistance to the employees with housing, applications for visas, and cultural adjustments. More so, the HRM can provide training and upskilling opportunities for the employees to help them upskill for the associated roles and responsibilities in the new location.

3.0. TOPIC OF DISCUSSION

3.1. Strategic Intelligence

Owing to its large GDP, diverse economy, and industries, both local and international, the U.S. proves to be an ideal location for the company to relocate to (IMF, 2023). The company is not only assured of a ready market but also readily available distribution channels through the already developed companies.

3.1.1. Infrastructure

The U.S. is among the top three most developed countries in terms of infrastructure. It has a well-developed network of physical structures and buildings, airports, and road and water transport (Razzaq et al., 2021). It also has developed electrical grids and water and sewerage infrastructure, which are essential for the smooth functioning of society.

3.1.2. Transportation

The U.S. has well-developed transportation systems. It has one of the largest road and highway networks in the world. There are about four million miles of public roads to connect the cities and rural areas (Borlaug et al.,2020). The public transport system consists of buses, commuter trains, and subways, which are run and maintained by the government. Besides, the country has a large network of air transport for both domestic and international flights. The U.S. also has multiple ports and harbors for commercial and recreational purposes. They are also used for the transportation of goods into and out of the U.S. with convenience.

3.2. Organizing the New Workforce

Based on the culture of the U.S., a new workforce is created based on the staffing needs, necessary skills and experience, and specific qualifications for each role. The HRM will, therefore, have to consider the number of employees it needs for the relocation, develop a comprehensive recruitment plan and recruit and select candidates for various positions (Burnett et al., 2019).

3.2.1. Cognitive Competence in the Country

Owing to the country’s stance as an industrial country, the multiple education and research institutes, and technological advancement, the U.S. is considered one of the countries that have the most skilled workforce (De Wit & Altbach, 2021).

3.2.2. Social and Interactive Competence

The workforce in the U.S. has effective communication skills, emotional intelligence, adaptability, and flexibility, all of which contribute to the social and interactive competence of the employees. The employees are active listeners, and they respond effectively through reports. They also have high emotional intelligence, which promotes them to manage their emotions and how they relate with co-workers (Tseng & Yeh, 2019). Besides, they have high adaptability and flexibility, which makes them change to new circumstances and situations in the workplace as required.

3.2.2.1 Teamwork and Collaboration

Teamwork and collaboration are highly valued skills in the U.S. workforce. The workforce has been tuned to be willing to share their ideas, support co-workers and work together towards a common goal (Martono et al., 2020).

3.2.2.2. Relationship Development and Networking

The U.S. workforce considers relationship development and networking essential aspects of successful work in personal and professional contexts. The workforce is required to maintain strong relationships to create and maintain new opportunities. The U.S. culture upholds professional associations and conferences in which employees can engage, network, and build relationships (Farrell & Newman, 2019).

3.2.2.3. Learning and Growth

Owing to the multiple high-quality education institutes in the U.S., the workforce is prompted to expand their knowledge and upskill for the sake of the growing needs in the career market (De Wit & Altbach, 2021). Employees are encouraged to take extra courses and degrees, which are mostly subsidized by the companies.

3.3. Training and Development

The employees in the new location will be trained on the company’s goals, objectives, and policies to ensure that they understand their roles in meeting the company’s objectives. They will also be trained in job-specific skills, communication, and problem-solving skills, which are all basic but very essential aspects of a successful workforce (Aburumman et al., 2020).

3.4. Total Remuneration Package

The workforce will be provided with a comprehensive salary package and benefits such as health care insurance, retirement plans, bonuses, and stock options (Admassie, 2019). To attract and retain more employees, the company will offer incentives such as performance-based bonuses and equity stakes.

3.5. Departmentalization

The HRM department will be formulated and organized depending on the specific roles of employees and employees, and customers. The departmentalization will be determined by the goals and objectives of the department, such as employee management, performance appraisal, training and development, and employee engagement (Ahmed, 2017). The department will be organized strategically to ensure that the company’s resources are organized to promote growth and scalability.

3.6. Legal Implications

The company will be prompted to comply with the business structure, immigration, employment, and tax laws of the U.S. For instance, the company will state its legal business structure- whether it is a company, a corporation, or a partnership and abide by the laws of its entity (Flaaen et al., 2020). The company will also have to ensure that the workforce has all the legal documents, including visas and work permits, as required by the U.S. government,

3.7. Workforce Retention

To retain the employees in the company, the HRM will offer them attractive compensation plans, including salaries, benefits, and incentives depending on their performance. Besides, the HRM will maintain transparent and clear communication channels with the employees to keep them in the know of what is happening in the company (Hines et al., 2020). It will also keep them engaged in the activities of the company, including corporate social responsibilities and other social activities of the company.

4.0. FINDINGS OR CONCLUSION

4.1. Findings

The HRM holds a key role in ensuring a smooth relocation of the company to the U.S. It evaluates the strategic intelligence of the new location and how it will best favor the business aspect of the company. More so, it is responsible for working to organize the new workforce for the company by catering to the staffing needs of the employees who are introduced to the company’s new location. It is also responsible for the development of a recruitment plan to source employees and retain them in the company. It will help the company develop the talents of the employees and upskill them to fit the goals and objectives of the company. There is also the role of developing a remuneration package, including the salary and benefits of the employees and incentive offers to keep them motivated (Hines et al., 2020). Besides, the HRM is responsible for familiarizing itself with the safety and health regulations of the U.S. and ensuring that the company is compliant with OSHA’s requirements. Moreso, the HRM has the responsibility of ensuring that the company complies with all the legal implications of the U.S., including determining its legal structure and compliance with employment and tax laws.

5.0. RECOMMENDATIONS

5.1. Recommendation

The HRM of the company should work to have a deep understanding of the U.S. laws and regulations on legal implications of a company that is looking to relocate to the U.S. Owing to the multiple companies and complex economic diversity in the U.S., the HRM should conduct research on the laws and understand how to comply with each requirement. More so, the HRM should develop a package for relocation for the employees. It is challenging for employees to move from one country to another. Therefore, developing a relocation package for the employees who will be moving to the U.S., including housing, visa processing, and transportation during the relocation, would make the relocation seamless (Zhukovska, 2021). Finally, it is important that the HRM develops an inclusion strategy to accommodate the diversity in the new country. The U.S. has a diverse economy and culture, which means that the workforce is diverse as well. Developing an inclusion and diversity strategy will ensure that the company has diversity in all aspects, including recruitment, training, and development.

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