Hiring Plan for 2019-20, Remuneration for the employees, Incentive Strategy for speedy growth of Organization, Essential Training Programs for International Business expansion.

Assignment Taken

Develop a Hiring & Incentive strategy for Human resources working on international expansion to enable a speedy growth.

Case Understanding

1. Need for the understanding of Organisational Culture of the foreign nation 2. Change management of our Organisational Policy 3. Demand for the workforce to set up a manufacturing plant overseas and other activities like marketing, sales and distribution 4. Managing the divergence of employees’ culture among foreign nations under one organisation. 5. Have to understand and abide by the foreign national’s HR policies.

BCS Solution Summary

Global Business Consultancy Ltd. (GBC) is a pioneer in consultancy services, helping brands grow. It offers its services to various segments such as 1. Start-Ups/MSME/MNCs 2. International/National Market Expansion 3. Product Portfolio Enhancement 4. Legal Consultancy 5. Project-based Research & Analysis GBC has been helping companies for the past 38 years and has a trusted client base, including RBC Foods Ltd., Gymnasium Footwears Ltd., Sleep more Polymers, Swastik Foundation, to name a few. Global Business Consultancy was approached for international expansion by Ramalingam Foods (Tagline: Making Homemade Chefs Since 1965), which has a ready to cook product portfolio, predominantly South Indian food mix including dosa-idli instant mix powder, dhokla, Gulab jamoon mix and filter coffee. GBC has decided to expand in Malaysia, Singapore and Indonesia of South-East Asia, where there is a substantial south Indian population. The company would make greenfield expansion in Malaysia followed by export to Singapore (by road) and Indonesia (by waterways). GBC has advised Ramalingam Foods to launch with current products at these three countries this year with planned product portfolio enhancement over the next two years. Ramalingam Foods will focus on R&D for product innovation (authentic Indian and Indian themed foreign dish), marketing for extending reach cum brand building, world-class IT infrastructure for coping with digital disruption, and employee-friendly effective HR policy. The regions for expansion have been chosen to venture into new geographical areas as by means it already has a presence in the Middle East, Southeast Asian countries and England. As we are consulting Ramalingam foods to export for the first six months, they were hiring gig workers on an hourly rate on a requirement basis. Until the manufacturing unit is set up in Malaysia as per plan, recruitment of employees can be outsourced as it will reduce high operating costs. The estimated number of employees is given in the table for operations in all three countries for a manufacturing team. One of the essential things for a company's global expansion and sustainability would be proper training to see directed and fast growth for the company. Incentives are not only in terms of monetary basis, so the incentives and benefits have been planned for all low level, middle level and high-level management reasonably.

Solution

As Ramalingam foods range from North Indian mixes to South Indian mixes, foreign countries with a high concentration of Indians are the right choice for international business expansion. Ramalingam food products are already sold in Southeast Asia, the Middle East and the United Kingdom. As a result of thorough market research, global business consultants mainly propose to enter the Malaysian market. The company can then expand into Singapore and Indonesia, far from Malaysia.

Hiring Plan for April 2019 - September 2019

While the Malaysian factory is being built, our products are exported to Malaysia in large quantities at sea. A wide range of products is shipped to Malaysia, Singapore and Indonesia. Goods can be sold on e-commerce sites, but unpacking them from vehicles in the warehouse requires manual labour. Foods range from North Indian mixes to South Indian mixes, so foreign countries with a high concentration of Indians are the right choice for international business expansion. Ramalingam food products are already sold in Southeast Asia, the Middle East and the United Kingdom. As a result of thorough market research, global business consultants mainly propose to enter the Malaysian market. The company can then expand into Singapore and Indonesia, far from Malaysia. While the Malaysian factory is being built, our products are exported to Malaysia in large quantities at sea. A wide range of products is shipped to Malaysia, Singapore and Indonesia. Goods can be sold on e-commerce sites, but unpacking them from vehicles in the warehouse requires manual labour.

Whom to hire?

Gig workers can be set hourly as needed. Gig workers are independent contractors, online platform workers, contract workers, zero-hour workers, and temporary workers. Gig employees enter into formal contracts with on-demand companies to serve their customers. Ramalingam Foods may post vacancies on top sites such as Behance.net, Fiverr, FlexJobs.com and Freelancer.com and available to gig staff.

Why Gig workers?

• Available on call anytime
• Remuneration based on work done
• Cost-effective to the company
• No benefit liabilities to the company
• Free of agreements

 

Working Plan:

After exported goods reach the respective port countries, logistics services will be hired for transportation to the inventory stores.

To do manual work at the store, gig workers will be hired.

Hiring Plan for October 2019 – November 2020

The workforce for the set-up can be outsourced from top companies for workforces like Randstad and Contract First. Outsourcing reduces and controls operating costs, which is one of the most significant expenditures of any company. The number of employees required for manufacturing is given below. The employees are split department wise.  

Plant Capacity –

Operations Department

Chief Operations Officer (1)- Plant Head cum Malaysia Head

Machine operators (8)

Mechanical Engineers (1)

Instrumentation Engineer (1)

Electrical Engineer (1)

Food Tech Engineer (1)

Facilitator (1)

Project Manager (1)

Project Engineer (2)

Marketing Department

Executives (2)

Managers (1)

The salesperson (4)

 

 

Human Capital Department

An executive officer (1)

Managers (1)

LR, IR personnel (2)

Research & Development Department

Scientists (1)

Administrative Officer (1)

Lab Assistant (1)

 

Quality Control and Assurance Department

Manager (1)

Administrative officers (2)

Information Technology Department

Manager (1)

IT Engineers (2)

Data Analyst (1)

 

Finance Department

Manager (1)

An executive officer (1)

Accountants (1)

Office Maintenance Team

Security (4)

Office boy (2)

 

Fire and Safety Department

Manager (1)

Officer (1)

Firemen (4)

Store and Procurement

Manager-1

Store Assistant-2

 

Total number of Departments = 10

Total number of Employees = 55

 

 

Departments	Number of Employees
Operations	17
Marketing	7
Finance	3
Human Capital	4
QC/QA	3
Office maintenance	6
Research & Development	3
IT	4
Fire and Safety	6
Store and Procurement	6

Remuneration (monthly) for the employees: -

• For all department heads - 11000 MYR
• COO - 12000 MYR
• Manager, Data Analyst - 7000 MYR
• For all executives’ officers – 5000 MYR
• For Accountants – 4500 MYR
• Machine Operator - 2500 MYR
• For Mechanical, Instrumentation, Electrical, Food Technology engineer -5000 MYR
• IT Engineers - 5000 MYR
• Salespersons – 3500 MYR
• Firemen, Lab assistant, Store assistant - 2500 MYR
• For Office boy, Security – 1300 MYR

 

Hiring plan for December 2019- March 2020

• The hiring of four employees - 1 Project manager, 1 Project engineer, 2 Legal relations managers in Singapore and Indonesia to take care of daily operations of Ramalingam Foods.

Incentive Strategy for speedy growth of Organisation

Why Incentives?

• Highly motivate employees for better productive work
• Reduce employee turnover rate
• Show more loyalty to the company
• More committed employees

Incentive Plan:

1. All employees will be paid with the basic pay structure; incentives are given above the basic pay.
2. Above a certain mandatory task to be performed on the working days, a work target will be set for every job.
3. The work will be divided into different categories, and every work will be a certain weightage percentage.
4. An employee will draw a proportionate monetary incentive based on the percentage of work completed concerning the points earned over the mandatory career per day.

Incentive Table:

Works	Target	Weightage	Actual	Points Earned
Work 1	100	40	50	20
Work 2	100	10	100	10
Work 3	100	30	100	30
Work 4	100	20	75	15
Total		100		75

• There can be n number of works for all departments
• Every department will have work targets specific to their domain
• Taking the example in the table, if 75% of the work is done, the employees will be awarded 75% of the allotted amount for incentive.
• Incentives for the low-level workers would be giving away one month of groceries worth Rs.2000 with the basic pay.
• All low level, middle level and high-level management will have

• Medical cover of 1 lakh
• Life Insurance cover of 1 lakh
• Accident cover of 1 lakh
• Education scholarship to one child if retained for min 5 years
• An additional week off with every one-year completion
• Gratuity after completion of 5 years

Training Plan
Importance:

Train your staff well so that your competitors are willing to pay twice the amount you are paying. Only the right and efficient candidates are hired for work, but training is essential for productive and transparent work disruptions. Even for multinationals like Ramalingam Foods, it is now of utmost importance to adhere to organizational policies and procedures and receive vocational training. The cooked food processing training plan is as follows:

• Skill-gap assessment will be done once a semester.

• If the employees are seen as skilled in any department, they will be immediately sent for specific training programs. A few of them are stated below.
• Operations – 6 sigma certifications
• Marketing – Digital marketing, Customer Relationship Management, Branding
• Human Capital – Negotiating skills, SHRM, Soft skills…etc.
• A minimum of 10 candidates will be sent for training programs at a time

Essential Training Programs for International Business expansion

• Proscar Change management program
• Export-Import program

Management principles used:

1. Division of Work – When employees specialize, the output increases because they become increasingly skilled and efficient.

2. Unity of Command – Employees should have only one direct supervisor.

3. Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.

4. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.

5. Centralization – This principle refers to how close employees are to the decision-making process. It is essential to aim for an appropriate balance.

6. Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.

Conclusion

Humans must not be seen as a resource rather a Value addition in terms of Intellectual property. Hence, HR is specified as Human Capital in the Case Solution. The HC department should look into the problems faced by the employees to reduce their pain points. If all the steps given in this case solution are implemented, then we will succeed in the business according to the projected sales. The management should see that all the departments are working in coordination with each other at high efficiency and productivity, achieving the goals of Global Business Consultancy.

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