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MGT03 International And Local Market For Seistrand Systems

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Questions:

1. What conflicting values are evident in this case in regard to organisation design?
 
2. What advice would you give Sudhir Gupta about a way forward that resolves the values conflict?
 
3. Using the knowledge that you have gained from this topic and additional background information that you can find about organization design, propose one or more structural forms that you believe would be suitable for Parivar.
 
 

Answer:

HBR Case Study

The main conflicting issue in this given case study is based on hiring an international talent, Anne Prevost. Being particularly a German-based organisation Typware, the organisation needs to recruit a new talent which can be beneficial for the organisational current competitive market. The international and local market is different from each other. For specific, the candidate wants to settle down in Europe. The hiring policies, the standard of living and future opportunities are entirely different for both of these continents (Brewster, Boselie & Purpura, 2018). The competitive market and new startup Seistrand systems are already offering various attractive offers to this individual, which is one of the major reasons for hiring her. As per the calculation is done by the HR managers of this organisation, the current offer is suggested by others giving Anne is almost similar pay scale to the CEO of this company. This issue has started creating various conflicting questions regarding the organisational hiring system.

Renate Schmidt, the HR head of this organisation have different options for overcoming this conflicting situation because the organisational strategy of increase the international revenues by 10%. There are different expectations for a suitable candidate from any organisation she wants to join. Therefore, as a renowned name in the international market Anne has some reputation to follow up. Therefore joining the new startup in the European market might not be very interesting and beneficial for her. Therefore, offering her with both the benefits the personal and professional level need to reconsider by the HR head. As the organisation itself has some policies to follow, a rational way to provide her best financial and personal benefit is required. The standard of living in Germany is more expensive than the American standard of living. Besides that, the family preferences of the best future to her sons and mother have to consider at the first place (McGregor & Doshi, 2015). Besides that, hard professional growth has to be considered depending on the growth or sales she is giving to the organisation after joining it. But the professional growth which will be offered has to totally based on the performance. Other benefits like a retirement plan, pension and family opportunities are needed to be considered based on the organisational policy.

The different management competencies, which is highlighted in this case study, are important for the 21st-century leader-manager in the VUCA world. Merit-based variables are significant for including the incentives depending on the delivered results. While hiring International candidates both the global and local policies need to overview for avoiding ambiguity, complexity, uncertainty and volatility (Kramar et al. 2014). Introducing a temporary assignment basis for the foreign candidates is the most beneficial way for both the candidate and organisation to reconsider the offerings and understanding the new environment. Upgradation of the organisational policies depending on the changing global market will increase our future opportunity for the businesses. Reconsidering the packages for the same skilled knowledgeable employees from the global level is needed time to time to provide equal opportunity to each (Dickmann, Suutari & Wurtz, 2018).

References

Brewster, C., Boselie, P., & Purpura, C. (2018). HRM in the International Organizations. In HRM in Mission Driven Organizations (pp. 79-114). Palgrave Macmillan, Cham.

Dickmann, M., Suutari, V., & Wurtz, O. (2018). The Multiple Forms and Shifting Landscapes of Global Careers. In The Management of Global Careers (pp. 1-31). Palgrave Macmillan, Cham.

Kramar, Bartram, DeCieri, Noe, Hollenbeck, Gerhart, Wright (2014). Human resource management in Australia - Strategy, people, performance (5th ed., pp. 6-12.). North Ryde, NSW: McGraw-Hill.

McGregor, L., & Doshi, N. (2015). How company culture affects employee motivation. Harvard Business Review Digital Articles, 2-9. 

 

Leaders at an IT services firm contemplate whether its family-like atmosphere draws talent in or drives it away

The organisational design of Parivar focuses on the friendly atmosphere working strategy which has given Sudhir Gupta a huge success to overcome the situation of bankruptcy. A family-like atmosphere in IT service can be both beneficial and disruptive. But it is totally dependable on the strategy of the organisation to gain commercial success. The given case study has provided specific identification about the basic area in the growing IT industry of India. Family like atmosphere has given this organisation a success but this growing competitive market is giving more opportunities for the newcomers by providing them with the huge number of annual growth in finance. Therefore, focusing only on the family-like atmosphere will not help for maintaining the organisational success. Attention need to give by the organization for attracting the participants or new candidates but also on securing the future by showing interest in their talent and skill. Besides that, the market trend has to properly overview by the organisation which will help them in designing its people support program. Sharing personal issues in the professional level will not excepted by many of the employees. Besides that, the people support system will also cost a large amount for the organisation like Parivar.

Sudhir Gupta, the head of this organisation has to reconsider the organisational culture and values. According to both Amal and Nisha, who are the young talents of this organisation that organisation need to focus on their retention numbers. a walk friendly atmosphere is always appreciated by new talent to explore their opportunities in the professional life. But staying only for the friendly what culture will not be the best way for their financial growth. A huge competitive market with giant rivals like Wipro, HCL are offering 30% growth on an annual basis (Bae & Yang, 2017). The current situation is creating complexity and turnover rate of the organisation is the major area where should be focused by Sudhir. He also needs to understand that the people support function will not be the current steps for regaining the goodwill of the organisation but also financial strategic steps are essentially required (Baker, 2017).

The organisational design not only needs to consider past experiences but also equally account the current market trends. Recruiting and retaining employees create a huge competitive advantage for the organisation to show the culture. But it has to understand that the work culture of India needs a specific strategy for young associates. A friendly workplace is always welcome but shelving the people support the idea for the current situation is required. Caring for the employees is useful for motivating them but the commercial benefit cannot be given by the caring climate or attentiveness (Squazzoni, 2017). The main focus should be on commercial performance and maintaining the brand image for attracting talent. Besides that, finding out how to assess talent is equally significant. The high turnover rate is one of the main issues which have to investigate by the HR department to identify the cause and overcoming the situation (Schermerhorn, 2016). 

 

References

Bae, K. B., & Yang, G. (2017). The effects of family-friendly policies on job satisfaction and organizational commitment: A panel study conducted on South Korea’s public institutions. Public Personnel Management, 46(1), 25-40.

Baker, T. (2017). How can we solve the problem of harmful organising structures? Retrieved from https://www.hrmonline.com.au/social-media/solve-harmful-organising-structures/

Schermerhorn, J. R. (2016). Organising as a management function. Management (6th Asia-Pacific ed., p. 279) [Wiley]. 

Squazzoni, F. (2017). Towards a Complexity-Friendly Policy: breaking the vicious circle of equilibrium thinking in economics and public policy. In Non-Equilibrium Social Science and Policy (pp. 135-148). Springer, Cham. 

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