The current business scenario is much more competitive in nature than it was a decade ago. This is due to the reason that, more business organizations are entering in a particular business sector, which is further increasing the competition and reducing the profitability. Thus, majority of the contemporary business organizations are opting for globalization in order to enter in new foreign countries and to enhance their market share and market presence (Cavusgil et al., 2014). However, initiation of the globalization requires updated and customized approach of the human resource management. This is due to the reason that, the business environment in the home and host country will be different and thus, organizations will require customized approach of human resource management according to the criterion of the host country (Beardwell and Thomson 2014). The more effective will be the policies of the human resource management; the efficient will be the business operation in the host country.
KIA motors are one of the leading automobile organizations in the world based in South Korea. They are having their brand presence in different countries around the world with having their product portfolio ranging from SUVs, hatchbacks to Gran Tourismo and electric vehicles(Kia.com 2018). However, being one of the largest automobile markets in the world, India is not still having the access to the vehicles of KIA. In the recent time, KIA motors have initiated the process to enter in the Indian market by 2019. However, they will require effective policies and strategies of human resource management in order to suit the Indian environment.
This report will discuss about the probable approach of human resource management to be adopted by KIA Motors in doing business in India. Moreover, the business environment of India as the target country will also be analyzed in this report. In accordance to the Indian business environment, strategies of human resource management will be discussed in this report.
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Political |
· India is having the largest democracy in the world and having stable political scenario. · Taxation system is also well developed, which will have favorable impact on the business of KIA motors. · However, the higher rate of tax will cause extra cost burden on the organization (Bose and Jalal 2017). · In the recent times, government of India is promoting “Make in India” initiatives to attract foreign investments (Goswami and Thakur 2016). · Business friendly initiatives are being promoted by the government by offering special economic zones and tax incentives. |
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Economical |
· Since 1991, India is one of the most liberal and business friendly countries. · In the case of the automobile sector, India is having the opportunity of 100 percent foreign direct investment. · India is being considered as one of leading developing countries in the world with having the highest GDP growth rate in the world (Malhotra 2014). Thus, KIA Motors will have huge business opportunity in India. · However, major population of India is still under the poverty line and thus, the target market will not equal to the total population. |
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Social |
· India is the second largest populous country in the world. Thus, the market opportunity is huge in India. · Middle class society is rapidly increasing in India and thus, it will be huge opportunity for KIA motors to sell their affordable models in India (Binswanger-Mkhize 2013). · India is the largest country in terms of youngest population. Thus, maximum population is in the verge of starting their professional career. This is an opportunity for KIA Motors to target the young professionals. · However, Indian market is already having huge number of competitors in the automobile sector. Thus, it will be a challenge for KIA Motors to gain market share by competing with the established players. |
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Technological |
· In the recent time, India is witnessing huge growth in technological sector due to increase in foreign players and investments. · India is having one of the largest IT sectors in the world. Thus, it will be easy for business organizations to have the access to the latest IT solutions (Jha 2013). · India is having low cost access of the updated technologies. Thus, the cost incurred in technology will be less for KIA Motors. · However, KIA Motors will require more updated technologies to develop cheaper and fuel efficient small cars. |
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Legal |
· India is having different legal complexities for the business organizations. · KIA Motors will have to adhere to the employee welfare related legal regulations in India (Meiners, Ringleb and Edwards 2014). · Organizations will have to comply with the diversity related regulations due to the reason that, India is having diversified population from different cultures and ethnicity. · There are other regulations such as minimum wage and retirement benefits acts are to be complied by the organization. |
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Environmental |
· India is being considered as one of the most polluted countries in the world. · Automobile sector is having direct impact on the environment (Percival et al. 2015). · KIA Motors will have to follow the stringent regulations related to environment in doing their business in India. · Huge pressure is there from different local and international NGOs for the business organizations. · Introduction of electric vehicles will be an effective strategy of KIA motors in dealing with the environmental issues. |
In the current business scenario, one of the key challenges being faced by the business organizations is the issue related to the management of human resources. Thus, it is important to have an effective strategy of human resource management in order to enable KIA Motors to effectively manage their employees in India.
One of the key initiatives to enhance the effectiveness of the employees along with engaging them in their workplace is to provide reward and recognition for their jobs. According to the resource based theory, employees are one of the tangible resources for the business organizations. Thus, it is important for the business organizations to enhance the effectiveness of their human resources in order to gain competitive advantages in the market. Thus, initiation of the reward concept will help KIA motors to motivate and engage their employees in their workplace. Moreover, the employees will be further motivated to enhance their productivity and effectiveness if they are being given proper recognition.
As discussed earlier, India is having population from different cultural and social backgrounds. Thus, it is important for KIA motors to have effective strategy of leadership in order to maintain the diversity in their workforce along with managing them to deal with the organizational challenges. According to the theory of transformational leadership, it is the responsibility of the leaders to effectively determine the requirement of their employees and engage them in the decision making process. This will enable the employees to engage themselves in the workplace along with having higher morale and motivation. Moreover, initiation of the transformational leadership will also help the organization to equip and train the employees according to the market and business requirement. This will enable KIA motors to have right employees in right place for the right job. In addition, with having the motivated and engaged employees in the workforce, KIA motors will be able to compete in the Indian market effectively.
There are different strategies related to the Human Resource Management that can be adopted by Kia Motors, as this will help in increasing the effectiveness of the different employees in the organization. Proper planning is essential in nature, as this will help in increasing the entire effectiveness of the company. The proper goal setting is essential in nature as this will help in improving the entire performance of the company and this will measure the effectiveness of the teamwork as well.
The different techniques and ways through which the effectiveness of the different strategies of HR is evaluated are as follows:
There are different kinds of training methods that can be adopted by the respective company, as this will help in analyzing the difference in the different global HR strategies (Kramar 2014). The different HRM strategies related to the training and development will help in reducing the differences and help in reducing the cross-cultural issues that is faced by the employees in the organization. The training has to be conducted in such a manner that this will help in developing different frameworks in an effective manner. The different methods of training and development such as off the job training methods as well as on the job training methods are essential in nature to train the employees in the organization to motivate the employees to make them work towards the success of the organization (Slocum, Leiand Buller 2014).
The success of the entire organization depends on the training of the employees, as this will help in increasing the entire effectiveness of the company. The different HRM programs has to be analysed in an effective manner as this will overcome the gaps in the process of performance and the objectives to meet the differences that is caused by the wrong training and development provided to the employees. The on the job training techniques is essential in nature as this will help in developing effective training strategy to meet the gaps and production will be efficient in nature as well. On the job training techniques will help in making the employees be aware about the different practical training that is required for the increasing productivity of the entire organization.
The training and development is essential and effective in nature, as this will help them in performing through learning. The on and off the job training methods is essential in nature as these help in changing the attitude of the employees towards performing the entire task and this will increase the skills and knowledge of the employees as well. The development program is essential in nature, as this will bring all the employees to higher level that will have similar skills and techniques in an effective manner. The cross-cultural gaps have to be reduced with different proper developmental strategies that can be implemented, as this will reduce the cross-cultural gaps in the organization (Chelladuraiand Kerwin 2017).
The different cross-cultural gaps will be reduced with proper implementation of different developmental and training strategies, as this will help in reducing the global differences between the different employees in the organization. The developmental strategies will help in implementing different programs on training as this will help in reducing the cross-cultural gaps and solve the issues faced by the different employees in the respective organization. The cultural gaps have to be reduced in such a manner that this will create harmony among the different employees when they are working in the organization and this will highlight the importance of the teamwork. Proper teamwork is essential in nature in respective organization as this will help in solving the cross-cultural issues and this will effectively implement strategies that can help in solving the gaps as well with different practical and theoretical knowledge.
The human resource management strategies have huge effect on the performance of the organization. The entire performance of the organization depends on the different strategies that are required for making the organization succeed in the future. The employees of the organization have to be motivated, as this will help in improving the performance of the organization to retain the employees in the organization as well (Armstrongand Taylor 2014).
The different motivational theories can be utilized in such a manner that this will help in understanding the different queries that has been affecting the reputation of the organization. The organizational competence is essential in nature as this will help in increasing the entire productivity of the organization and human resource management is tangible in nature that will help in solving the queries. There is a positive and cordial relationship between the organizational performance and the human resource management as the different strategies of the human resource management will help in understanding the different developmental activities that has to be adopted by them. The developmental and training programs have to be adopted in such a manner, as this will help in increasing the entire competence of the organization along with the employees.
The development of the employees in the organization is affected positively with the help of the performance of the organization. The performance of the entire organization as well as the development of the employees is affected with the help of different resources in an effective manner. The development of the employees in the organization helps in introducing the relationship in such a manner that this will help in affecting the performance in a positive manner (Albrechtet al. 2015). The human resource department helps in facilitating the change in the organization by providing training to the employees that include on the job training along with in-house or off the job training methods. The on the job training methods will help in successfully implementing different practical techniques as this helps in solving the different queries in an effective manner. The organizational change management will help in addressing the different requirements in such a manner that this will help in analyzing the effect of different changes in an effective manner (Khanand Rasheed 2015).
The employee recognition concept helps the respective organization in such a manner that this will help in creating as well as continuing change in the tasks that are performed by them (Brewsteret al. 2016). The change that has been adopted by the organization has to be implemented in such a manner that this helps in improving the training and recruiting techniques as well. The human resource management will help the entire organization along with the employees in the organization to include change in their perspectives, as this will help them in adapting to the different changes that takes place in the organization. This will help in introducing innovative strategies as well as this will help in solving the different queries in an effective manner and this will generate good and positive strategies as well (Pailléet al. 2014).
The human resource management of an organization is affected by many issues that include the political and legal factors that are related to the country where the organization is operating. The stability of the political condition of the country can affect the operations of the organization. The political stability of the countries differs from each other and this can further affect the profitability of the organization as well. Kia Motors has to thereby consider this factor before entering the political market. The political situation of South Korea is quite different from that of India. The national environment or political ambience of India is highly welcoming towards any type of new business organizations (Al Ariss and Sidani2016). Kia Motors has to strategically decide the ways by which they need to comply with the laws and regulations that are related to the legal system of India. The ethics related to the business organizations in India is also different from that of South Korea. The human resource department of the organization therefore needs to formulate the ethics of the business with respect to those followed in India. The laws related to human resource in India is also quite different that of South Korea(Alpaydin 2015). The human resource departments of the organizations that are operating in different countries need to operate in such a way so that they can comply with the laws of that country. The economic situation of India will also affect the operations of Kia Motors. The economy of India is stronger than that of South Korea and this will have a positive impact on the revenues of Kia Motors.
The cultural situation of India will affect the formulation of HRM strategies of Kia motors. The different forces related to the society which affect the culture of that country are the beliefs, actions and values related to a group of people. The conflicts related to the cultures of the different countries are related to ethnicity and religion. The major dimension that are related to the cultural situation of the country are, power distance, individualism, avoidance of uncertainty and long-term orientation(Bamberger, Biron and Meshoulam 2014). Power distance is related to the inequality that exists between the people of the nation. As the distance increases the differences of status between the people also increases and the difference in authority also increases. The individualism is referred to the ways by which the people of the country try to act as individuals or groups(Welchand Björkman 2015). The dimension related to uncertainty is related to the preference of the people of the particular country regarding structured or unstructured situation. The long-term orientation of the people of a particular country is related to the long-term or the short-term values of the people(Baum 2016).
The organizational factors also affect the HRM strategies that are formulated after then expansion of an organization. The structure of the organization and the organizational culture affects the HRM strategies that are formulated during expansion in any other country. The culture of the organizations is different in India as compared to the culture in South Korea. The difference in the culture of the employees will also affect the HRM strategies of Kia Motors(Brewsterand Hegewisch 2017).
Performance management mainly includes the activities of the organization that help in ensuring that the goals that are set can be met in an efficient as well as effective manner. The process of performance management mainly focusses on the performance of the organization, any particular department of the organization and the employees as well. The process that is applied by the management to align the resources, employees as well as systems of the organization can also be termed as performance management system(Fagerström, Lønningand Andersen 2014). The major benefits that are provided by the performance management of the organization are managing the employees and performance of the system as well. Integrated software is used to manage the performance of the employees in the organization. The development of the organization is based on the performance of the employees and their production as well.
Performance appraisal methods are used to assess the performance of the employees of an organization in a systematic manner. This is a development tool that can be used to ensure the overall development of the employees and the organization as well.
The process of performance appraisal consists of eight steps which are, definition of the objectives, expectations from the job, designing the appraisal program, performance interviews, using the data for the appropriate purposes, identifying the opportunities, using the physical processes, social processes and assistance by human and the computers(Jackson, Schuler and Jiang 2014).
The individual performance of the employees of Kia Motors can therefore be improved with the help of the different performance appraisal methods that are discussed above(Slocum, Leiand Buller 2014).
Kia Motors is an international organization which has its operations in South Korea. The management of a global organization requires many different characteristics that are related to managing the employees in such a way so that they support the decisions of the management. The characteristics of the global leaders are, overseas experience, self-awareness, sensitivity to the cultural diversity, humility, curiosity, honesty, strategic thinking on a global scale, patience, well-spoken, presence, good negotiator(Nelet al. 2014). Overseas experience is important for the global leaders so that they can understand the global environment easily and plan their business activities according to their understanding. The leaders of the global organizations need to be sensitive towards cultural diversity as the cultural differences between two countries are quite large and this can affect the operations of the business as well(Phillipsand Gully 2015). The leaders can therefore manage these situations so that the employees can work effectively. The leaders of international organizations need to have clear strategic thinking and they also need to possess a global perspective towards each and every topic. This will help them in formulating strategies so that they operate in the global locations in a profitable manner(Pournader, Tabassiand Baloh 2015).
Conclusion
The report can be concluded by stating that Kia Motors needs to consider many different aspects related to business before starting their operations in India. The differences in the political, economic, social, technological, legal and environmental situations between India and South Korea can affect the ways by which the business can operate. The cultural differences between the two countries can also affect the operations within the organization. The difference in the cultures of the two countries can affect the mentalities of the employees of Kia Motors. India and South Korea have major cultural differences and this can create a culture shock in the organization. Kia Motors needs to formulate strategies related to the management of the performance of the employees and the organization itself. This will help the organization in improving the performance of the employees before they can plan for an international expansion. India is an economically stronger country as compared to South Korea and this will act as a positive factor for the organization. Kia Motors will be able to operate in profitable manner in India and their expansion can also be successful. The expansion of Kia Motors will therefore be majorly affected by the external conditions of the country where it is planning to expand its operations. The analysis thereby proves the HRM strategies of the organizations need to be formulated after the external analysis of the environment where the business operates. The situation of the country where the business is expanded affects the HRM strategy formulation and the ways by which the leaders of the organization need to act in the situation.
Kia Motors is therefore recommended to analyse the environment of India properly before entering the market so that they can formulate the strategies of the organization related to HRM which will affect the capabilities of the employees of the organization. The most important part of the analysis is the examination of the political or economic situation of the country as this will affect the ways by which the organization needs to operate in India. The HR managers or leaders who will be appointed in the organization need to be sensitive towards the culture of India so that they can act accordingly and the employees do not experience ant types of issues while working in the Indian branch of the organization. In this manner, Kia Motors will be successful in expanding its operations internationally and gaining profits as well.
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