Globalization has seen businesses expanding their operations across the world and especially to emerging markets. This is because emerging market consumers are experiencing newly gained wealth and want to spend this money on international brands. International brands in emerging nations are used and status symbols which help distinguish each individual’s income and stature in society (Steger, 2017). This has meant major brands from Europe, the USA and Australia are now focusing their attention towards expanding to emerging international markets. Another major factor linked to this sudden interest towards investing and expanding operations in emerging markets is their ability to deliver competitive manufacturing terms and facilities (Cavusgil, Ghauri, & Akcal, 2012, p. 224). This allows globally recognized brands to manufacture their products at affordable costs so as to remain competitive on the global market. But international business expansion also means the business encounter major challenges which must be addressed to ensure the business implement the right strategies and theories to increase their success rate (Kvint, 2010). The report shall discuss some important interactions business theories Damac Properties has implemented in interactions business expansion plan which has helped the business a high rate of success.
Human Resource and Business Management Theories
Damac Properties is heavily dependent on skilled professionals and engineers in its building and construction operations. This makes it important for Damac Properties to put in place effective human resource and business management theories which will ensure the highest rate of efficiency and success while working with skilled professionals from the international market (Bratton & Gold, 2012). It is critical to combine both human resource and business management theories so as to address all stakeholders’ needs thus ensuring the businesses sustainable future.
Human Resource Theories
Damac Properties is heavily dependent on skilled professionals to manage their building construction projects. Despite the business investing millions on state of the art equipment and technology, human resource is still a major requirement and the business outsources skilled labour from emerging international markets (McGuire & Jorgensen, 2010). To ensure the company employees are happy and performing an optimum the business has adopted important human resource theories which address human resource needs from an international perspective thus ensuring smooth operations growth and high performance.
Maslow’s Need Hierarchy Theory
Damac Properties has utilized the Maslow’s Need Hierarchy theory to manage its multicultural manpower. Maslow’s Theory accurately predicts human resource behaviour based on need. Each individual applying to work at the organization will be evaluated to determine their current status and need before being ranked on the Maslow triangle of needs. Each applicant is evaluated to determine their current status from a universal and international perfective allowing the business to rank each at an appropriate position. This also allows the business to protect the individual’s progress and growth based on international guideline of managing human resource. According to the Maslow’s Need Hierarchy theory, individuals will focus on satisfying their physiology, safety, Love and belonging, esteem and finally their self-actualization. This applied for all people making it a universal guide which must be used while managing skilled professionals from international market (McGuire K. J., 2012).
According to the Maslow’s Need Hierarchy theory, each skilled professional considered for employment at an organization will fall under one of the above categories. This makes it important to determine their current status from a universal and international perspective. This would assist the human resource department and management determine the individual’s state of focus and help predict how they are likely to react under employment. The Damac Properties HR department also uses this data to determine an individual’s capability to perform as part of an international team of skilled professional. This is due to Damac teams involving member from different countries and cultures requiring the work force to follow universal guideline of management (Maslow, 2013). The general rule related to the Maslow’s Need Hierarchy theory is that skilled professionals who demonstrate a lower level of self-awareness are also likely to be hired at lower posts and their proportion rate also depends heavily on the level. Higher level employees are likely to receive faster proportion due to them already having overcome their physiological and safety insecurities. As per international human resource management studies, lower ranked employees will usually be distracted by their insecurities and likely to focus on development and growth after in securities have been overcome.
Adam’s Equity Theory
Another important human resource management theory utilized by Damac Properties is Adam’s Equity Theory. This theory focuses on demonstrating how human resource efforts on work or performance is directly associated with the reward for work. Due to being dependant on an internationally diverse workforce most of the skilled professionals are focusing on high income. This makes high rewards an important factor influencing the international workforce (Miner, 2015). The prospects of gaining high reward are likely to boost performance among internationally outsourced skilled but this requires to be carefully managed to ensure employee focus and attention is not lost due to over-rewarding them.
With this in mind the management, team leads and human resource department monitor and reports on each of the company’s international outsourced employees individually. The results are also published among the team for all members to review each other’s performance so as to avoid favours and finger pointing during the time of reward distribution. Besides the rewards, Damac Properties also emphasizes on the use of Adam’s Equity Theory and publicly publishing results as it helps streamline each member’s performance (Miner1, 2007). Lower performing team member can also seek performance tips and guidance from higher performing team members which allows the team to strike an equilibrium related to performance.
Damac Properties has also had to put in place important business management theories which ensure the business operations are undertaken in a professional’s manner so as for their effect to reflect on the human resource. Both aspects of the business coincide making it important for HRM and business management theories to be linked thus ensuring all stakeholders benefit (Witzel & Warner, 2013). Some important international business management theories utilized by Damac Properties have been discussed below:
Henri Fayol Theory– employees/ employer efficiency functionality
According to Henri Fayol’s Theory employees are likely to perform efficiently of the management or business leadership also performs its roles efficiently. This has been an aspect that Damac Properties has always emphasized on as this helps demonstrate to the employees that the company is practically functioning. This is achieved through Efficient and timely communication, immediate response to situations and practical implementation of processes (Peaucelle, 2015). This means the management, leaders, and supervisors must be able to handle the operations via supering operations and work strictly and managing the workforce. At the same time, it is critical for them to interact and understand employee needs and requirements especially when dealing with a culturally diverse workforce. In many situations employees simply does understand the process they are required to follow due to communications gaps. This makes practical interventions critical towards intervening and managing international labour forces. It’s critical to ensure this is limited to setting an example and the responsibility should return to the employee or responsible person who must be able to perform the work efficiently.
This is an important theory which Damac Properties focuses on training is senior staff on since the business is heavily dependent on hiring skilled professionals from across the globe and from different cultural backgrounds. This means the staffs is constantly facing communication limitations which some attempt to exploit to deliver a low performance. In order for Damac Properties to harness the highest performance from its entire staff the business must make sure the senior managers master the skill of offering guidance but also retain their workforce’s ability to perform. Many staff tends to take advantage of communication gaps to slow performance even when they understand the process which makes it important for the senior to intervene and act when processes are not being undertaken in the correct manner (Taylor, 2016). This could take shape of simply raising one's voice or making the decision to fire and individuals who may be underperforming despite being provided with a healthy working environment. Setting an example and retaining control of staff is a critical requirement Damac Properties utilizes which has been directly adopted from Henri Fayol’s Theory
Frederick Taylor Theory– Pay per Piece
To maintain employee performance and ensure employees are performed as per the organisation's expectations the business has also identified important employee work output quantities which need to be achieved by the employees on a daily basis (Sapru, 2013). Despite the staff being permanent employees of the organization the business has identified important work performance thresholds each staff member must achieve while performing their duties on a daily basis. A mortar and brick later must achieve 10%+/- the set amount of bricks and motor laid on a daily basis. Steelworkers also have their own measuring criteria and every bag of cement has its own measurement criteria. This is very important as it ensures the business staff has to achieve a set amount of work based on international guidelines. In addition to this, Damac Properties also has a policy which rewards employees for performing above the set target which are based on international statistics. The levels must be based on international averages due to Damac depending heavily on internationally acquired skilled professionals. This results in them being able to secure higher incentives which are beneficial for the organization and it maximizes employee performance while on the job.
Damac Properties being an international construction company does not have all measurable products which staff can be pin-pointed but ensuring all staff is functioning effectively and at the right pace generally automatically pressurizes all staff on perform efficiently.
Setting a measurable quantities each staff member must achieve based on intentional guidelines will set uniform quantified each employee must achieve based on international statistics. It also means the management must dedicate their efforts towards field operations and collection of data which can be analysed to determine the standards performance output which can be utilized by the organisation for each staff member (PEI, 2009). This rule that must be applied to all staff members despite their gender, age or cultural background so as to ensure business smooth operations and functionality.
Businesses from across the globe have been forced to consider expanding their operations abroad and also hiring employees from international markets. This has resulted in complicating management of the international businesses and human resource management which is also seeing companies hire personnel from interventional markets. To harness the highest output the organizations have also had to infuse both human resource and business management theories which address the international business operation and diverse workforce. This has meant that the business has had to set specific targets for all its staff members to achieve which has, in turn, allowed the business to measure and gauge each stake holder’s performance and how the performance can be improved over time to improve efficiency, output, and profitability.
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