Three HR initiatives Implemented at HerbaLine Facial Spa Malaysia
Discuss about the HR sustainability initiatives at HerbaLine from a theoretical perspective and evaluate whether the initiatives are authentic.
According to the case study, organizational sustainability is discussed in terms of the human resource strategy implemented a HerbaLine, a rapidly growing organization in the highly competitive beauty spa industry in Malaysia.
The purpose of this case study analysis is to evaluate different forms of sustainability initiatives related to human resources at HerbaLine facial spa, Malaysia. As the case study is related to the HR strategy of a rapidly increasing company in the highly competitive market of Malaysia therefore, the case study analysis will focus on the individual values and philosophies. By looking at the strategies from a theoretical view- point, it will be easy to analyze the validity and authenticity of the initiatives undertaken at the organization.
This case study analysis will further look into three specific initiatives implemented by the HR department of HerbaLine facial spa at Malaysia. While describing the three sustainability initiatives, their contribution, authenticity and difference in outcome based on the organizational condition will be clearly explained. The case study analysis will further look into the contribution of the HR initiatives undertaken at the organization for boosting up the positive social and human outcomes. The difference in the outcomes of the initiatives will also be highlighted at the end of the case study analysis in order to draw a valid conclusion.
From the given case study of HerbaLine facial spa, Malaysia, it was found out that the organization has taken three prominent initiatives by aligning with their HR sustainable strategies. These three initiatives also influence the company stakeholders largely. Following are the three selected sustainability initiatives:
The company had initiated the approach of training and developing the suitable people for the betterment of the company. There was a provision of one- month paid training program in HerbaLine facial spa Malaysia along with the staying facility at a 5- start resort. It was a great initiative on part of the company to retain the potential and talented employees in the company.
The company has recently bent their salary structure along with the benefits and incentives provided to the employees. It was a part of their HR initiative in order to involve the right people in the appropriate work. Several policies were initiated by the company such as profit- sharing incentive plan; annual incentive tips and co- pay scholarship for senior employees’ children. It will help the employees to understand that the company values them and can go to any extent to keep them. Nothing is more important than an employee to feel valued at own company.
Authenticity of Three HR initiatives
HerbaLine facial spa, Malaysia has implemented employee wellbeing program, annual social events and reduction in working hours during the weekends. These were some of the great initiative strategies to pave the way for a sustainable working environment by retaining the senior and talented workforce. It was a wise decision taken by the company to value the existing workforce.
HerbaLine’s motivations for sustainable initiatives were based on the three significant factors of products and services, environment and ambience and pricing. These were the three areas focused by the company to incorporate their sustainable initiatives. Among more than 600 beauty spa and salons in Malaysia, HerbaLine was the only one to develop from single unit to 23 company stores in addition to 32 shops franchise chain by using their sustainability initiatives. Their strengths included efficient service and the recruitment and training of suitable staff to provide such service.
The three HR initiatives are authentic and the explanation is given below.
It is authentic because the company considers the workforce as the pillars. They are concerned about their workforce and want them to have a bight career and brilliant life ahead. Their intention is not to recruit people for filling up the vacant positions. That is why. There is no question of duplicity in implementing this particular initiative (Jaworski et al. 2018).
Benefits and incentives:
There is no doubt regarding the authenticity of this particular initiative. This is because the profit- sharing elements and other plans were critical in the selfless management of the company policies. The policies work in such a way that their benefits are related to the employee well- being (Milhem, Abushamsieh and Pérez Aróstegui 2014).
Healthy corporate culture:
There is a slight doubt regarding the validity of this initiative. This is because the company keeps employee welfare and family time as the topmost priority at the expense of HerbaLine. Moreover, they invite family and friends to experience the same convenience and attract customers in this way. The doubt has emerged because this situation can be perceived as a form of improving brand image (Hickman and Silva 2018).
The human and social outcomes for the HR initiatives of HerbaLine can be found relevant to the organizational behavior theory of HRM. This theory is aimed at increasing the efficiency of the business by looking at the ways employees interact within a group (Miner 2015). This is in relation with the case of HerbaLine as the organization highlights on the welfare of the employees by modifying their compensation and benefits.
Human and Social Outcomes for HerbaLine Facial Spa
The outcome of extensive training was experienced in the form of exposure to the service quality of the competitors. This led to the development of an excellent workforce within the company and provided a competitive advantage to Herbaline.
Benefits and incentives:
Arutchelvi et al. (2016) stated that providing rewards to the employees and looking at the welfare of their families and friends, made the employees realize their value at the company. It led to increase in employee engagement and loyalty towards the company thus, avoiding turnover. It helped in boosting employee performance to provide an opportunity for sustainable future.
Healthy corporate culture:
According to the Buddhist philosophy, a tolerant and peaceful work environment is widely accepted (Ayeleke et al. 2016). Therefore, HerbaLine followed the practice to keep parity between conflict reduction and reduction in time spent by the HR in improving organizational performance. It led to a decrease in employee turnover, thus reducing the cost of employee recruitment.
There might be difference in the three kinds of HR initiatives adopted by HerbaLine facial spa, Malaysia depending on business activities. As HerbaLine is a large company therefore, its activities will be different from an SME. It can be analyzed that the three initiatives that is undertaken at the company was appropriate for their objectives of putting the staff on the top of the priority list. According to HerbaLine, Malaysia, a good customer experience is dependent on the interaction between the staff and customers. Therefore, the three initiatives of training, benefits and initiatives and healthy corporate culture were significant in terms of employee retention and their involvement with the job. Given below are the three initiatives along with the evaluation and the difference that might be caused by these initiatives in a large and small company.
The extensive training program at HerbaLine was similar to the activities carried out at smaller companies. This is because the smaller companies have limited resources for smaller workforce and the effect will be negligible. However, HerbaLine was a rapidly increasing company and therefore their training and development activities were different from other SMEs. According to Imas (2014), training and development was helpful in terms of workplace safety, employee satisfaction and increasing productivity. Therefore, in HerbaLine facial spa, Malaysia, training was initiated to make the new employees acquainted with the functions carried out at the company as per the training needs analysis. The training that was provided to the new employees taught them about the customers’ perspectives which was linked to the objectives of the organization. They understood the intention of the organization where the employees were expected to think not only from their perspective but also from the co-workers’ and the customers’ perspective.
Difference in Three Kinds of HR initiatives
Benefits and incentives:
As per Naidoo et al. (2016), a small company will not be able to afford such extravagant plans and resources as implemented by HerbaLife. Providing benefits and incentives to the employees helps them in understanding that company is not only concerned about their health but also their future. However, an SME is not equipped with financial resources as HerbaLine, which is a rapidly growing company. They hardly have any additional finance after paying salary of the employees and bills. Therefore, the impact of benefits and compensation will have much smaller impact in an SME than a large company as HerbaLine (Sozinova, Pugach and Gangheeva 2015). This facial spa company went a long way by organizing annual incentive trips for the employees who could meet the annual sales target. This was a great initiative as it helped in employee retention by avoiding employee turnover. It helped in motivating the employees as the company also rewarded other deserving and talented employees. There was internal promotion to the managerial position and the company made it a strong point not to hire senior officials from other companies.
Healthy corporate culture:
According to Carlos Pinho, Paula Rodrigues and Dibb (2014), the impact will be similar with an SME because both works on a reduced working hour during the weekends thus leading to a healthy working environment. A healthy corporate culture helps in retaining the talented and valuable employees thus cutting costs of human resources. As HerbaLine is a Malaysian company, therefore they follow the Buddhist values. According to the value, implementing a healthy corporate culture will be cost- effective and an efficient activity for the organization. Therefore, it was the aim of the organizational management to recognize all the employees and each new employee was invited for dinner before their training ends. Different occasions of the employees such as their birthdays and baby shower was all celebrated with great fun and joy (Sozinova, Pugach and Gangheeva 2015). It was helpful in maintaining a healthy culture within the organization, HerbaLine Malaysia.
It can be concluded from that the three HR sustainability initiatives included training, benefits and incentives and a healthy corporate culture and they were successful in affecting the business environment of HerbaLine facial spa, Malaysia. Training the senior staffs helped in retaining them by realizing their value and avoiding turnover. Benefits and incentives were intended towards family and friends of the employees as well. A healthy corporate culture was effective in reducing working hours on weekends thus preventing workplace conflicts. The implications of future HR practices were laid down in the form of cutting cost for the future to focus on other important practices.
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Ayeleke, R.O., North, N., Wallis, K.A., Liang, Z. and Dunham, A., 2016. Outcomes and impact of training and development in health management and leadership in relation to competence in role: a mixed-methods systematic review protocol. International journal of health policy and management, 5(12), p.715.
Carlos Pinho, J., Paula Rodrigues, A. and Dibb, S., 2014. The role of corporate culture, market orientation and organisational commitment in organisational performance: the case of non-profit organisations. Journal of Management Development, 33(4), pp.374-398.
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Imas, A., 2014. Working for the “warm glow”: On the benefits and limits of prosocial incentives. Journal of Public Economics, 114, pp.14-18.
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