ASPECTS OF HUMAN RESOURCES MANAGEMENT IN ROMANIAN SUBSIDIARIES OF MULTINATIONAL CORPORATION

This lesson was given by Maria-Madela Abrudan assistant professor of the Faculty of Economics of the University of Oradea in Rumania.

THE PRESENTATION

The core of the presentation was based on the idea of the impact so significant that the globalizción is having in the management of the human resources. In the presentation Maria speaks of ) there were focusing several aspects of direction of human resources in the Rumanian subsidiaries of the multinational corporations.

CONSIDERATIONS

We must consider all the variables that moderate differences between domestic and international human resources management:
The cultural environment
The complexity involved in operating in different countries and employing different national categories of employees
One way to overcome the dilemma of cultural adaptation is to use host country-nationals to assist in devising a suitable system for appraising the local staff in the subsidiary and to advice on the conduct of the appraisal.

THE METHOD

In all Romanian subsidiaries of Multinational Corporation the establishment of agreed-upon performance standards between employees and managers is crucial to this process
each human resources department establishes objectives according to the general rules elaborated by the head-quarters.
Salary and promotion is in most times dependent upon performance appraisal.
In general, the evaluation of the personnel is done through methods like: self-evaluation, evaluation done by line manager and interview, each of those instruments being implemented and adapted according to organizational culture, objectives and dimension of company.

THE APPRAISAL SYSTEM

The appraisal system is based on two basic components: a performance evaluation, periodically done at the final of each project- planning the career development - on a period of sixth month, one year or longer.
At the end of the performance appraisal period, the counselor (a colleague of the employee, upper situated in the organization, who has the role to guide the employee in developing his career from a professional and personal point of view) and the employee will officially meet to observe if the individual goals and objectives were reached, to track down the obstacles and to establish the ways used by the employee to overcome them.

CONCLUSION

These are the general ideas of the presentation. In addition Maria illustrated all these explanations with practical examples like positive reinforcements translated in days off or discounts for the employees etc

MARKET RESEARCH

In this unit we are going to learn the difference between primary and secondary market research and how primary and secondary market research may be used by a business to help inform its marketing decisions.

Primary Research

The information we can extract for a primary research its good because it’s a first hand information what can be highly focussed and relevant. The problem is what this process of collect this info its expensive also its to analyse and evaluate the information. Another disadvantage is the care needs to be taken whit the approach and methodology to ensure accuracy. The questions can be “closed”(yes or no questions) or open (more elaborated questions what provides useful information but difficult to analyse.

Market Research

The market research can be done gathering quantitative aor qualitative information. The difference between they are what the quantitative information it’s based on numbers and statistics and not bear in mind why, when or how. The qualitative information offer more details (why, when and how)

Secondary Research

The secondary research it’s realized using two types of sources: internal and external
1. Internal Sources:
o Company Accounts
o Internal Reports and Analysis
o Stock Analysis
o Retail data-till data, etc

2. External Sources:
o Government Statistics
o EU-Euro Stat
o Household Expenditure Survey
o Magazine surveys
o Other firms’ research
o Research documents-publications. Journals, etc.
o Web sites: commercial & non commercial.

SAMPLING METHODS

There are many methods to collect information. We can realize random samples where there are equal chances of anyone being picked. The best problem its that can be very expensive. Also we can do an stratified or segment random sampling. This system can be more focussed and may give more relevant information. The cheaper method is the quota sampling where an specific number on each segment are interviewed but may not be fully representative.
There are another methods not too importants like cluster sampling, multi-stage sampling or snowball sampling.

ADVANTAGES OF MARKET RESEARCH

The advantages of market research are we can help us to focus attention on our objectives, may help to reduce the risk of new product development and the research communicates image, vision, etc
The globalisation makes market information valuable

DISADVANTAGES OF MARKET RESEARCH

The disadvantages are that information only as good as the methodology used, can be inaccurate or unreliable, the results may not be what the business wants to hear etc…
We will never have sufficient information. ;)

HUMAN RESOURCES MANAGEMENT

The human resources management has many different activities: Selection, Recruitment, Employment Legislation, Discipline, Development, Training, Trade Unions, Productivity and Motivation

RECRUITMENT

This activity is based in detect witch job have a vacancy and what type of employee we need for the vacancy.

Later the recruitment section posts Advertising in internet or magazines etc with this structure:

l Job description – outline of the role of the job holder

l Person specification – outline of the skills and qualities required of the post holder

l Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)

SELECTION

In this part the Human Resources section make a selection process to define who is the best candidate for the job about all the people who have respond to the advertisement.
This process follows these points:

l Interview – most common method

l Psychometric testing – assessing the personality of the applicants – will they fit in?

l Aptitude testing – assessing the skills of applicants

l In-tray exercise – activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer

l Presentation – looking for different skills as well as the ideas of the candidate

EMPLOYMENT LEGISLATION

The employment legislation regulates how store and use the tools of work and how have to deal with our employees and how have to deal between they.

DEVELOPMENT
Developing the employee can be regarded as investing in a valuable asset
– A source of motivation
– A source of helping the employee fulfil potential

TRAINING

Similar to development:
– Provides new skills for the employee
– Keeps the employee up to date with changes in the field
– Aims to improve efficiency
– Can be external or ‘in-house’

REWARDS SYSTEMS

The rewards systems are the systems of pay and benefits used by the firm to reward workers. The rewards do not have to be necessarily in Money; they can be in fringe benefits or holidays, etc…

TRADE UNIONS

The human resources sections have the task of build relationship with employee representatives. It’s very important the task of consultation and negotiation whit trade unions. That contributes to smooth changue management and leadership.

PRODUCTIVITY

The productivity is the output per worker per period of time. It’s one way to measure the performance of the worker.

The task of Human Resources is measure this performance to value the workers contribution.

The appraisal must follow these points:

– Meant to be non-judgmental
– Involves the worker and a nominated appraiser
– Agreeing strengths, weaknesses and ways forward to help both employee and organisation

Quantitative and Qualitative Factors in Decision Making

Quantitative Factors

This factors provides a numerical basis for decision making. It reduces decisions to looking at a monetary value placed on different choices, e.g.

Forecasted sales figures for the next 3 years

The cost of a series of redundancies against the longer term financial benefits to the firm of this process

But this system only provides a part of the total information. Though we have numerical information we have to bear other variables in mind as the environment, the competitors or the socioeconomic situation.

Qualitative Factors

Qualitative factors look to take account of these other issues that may influence the outcome of a decision. Can be wide ranging and especially need to consider the impact on human resources and their response to decisions .

SWOT Analysis

This analysis is based in :

Strenghts

Weaknesses

Opportunities

Threats

PEST Analysis

This analysis bears in mind:

Political

Economic

Social

Technological

Business Ownership: The Private Sector

When we talk about “prívate sector” we refer to the business activity owned financed and controlled by prívate individuals like:

Ø Sole Traders

Ø Partnerships

Ø Private Limited Companies

Ø Public Limited Companies (PLCs)

Ø Co-operatives

Ø Franchises

Ø Charities

We are talking more detailed about sole traders and partnerships

SOLE TRADER

- Owned financed and controlled by one individual but can employ other staff.

- Common in local building firms, small shops, restaurants, butchers etc…

ADVANTAGES

- The basic advantages are that it’s a business easy to set up, flexible and whit high degree of control. In addition you can keep all the profits

DISADVANTAGES

- The disadvantages are the big degree of liability of the owner, the limited acces to capital and the amount of time required to obtain benefits

PARTNERSHIPS

- Owned, financed and cotrolled by upwards of 2 partners

- Common in professions-lawyers, accountants, architects, surveyors, estate agents, vets etc

ADVANTAGES

- They have more acces to capital that soletraders, the responsibility its shared and its easy to set up too.

DISADVANTAGES

- The best disadvantage I think it’s that all partners liable for the debts of the others. In adition there are a potential risk of conflict and the decisions og one partner binds on the rest.