Académique Documents
Professionnel Documents
Culture Documents
Lastly, we offer our regards and blessings to all of those who supported us in any respect
during the completion of the project.
Executive summary
Every businessman has aspiration to take their business internationally. There is lot of
complications and risks involve taking the business internationally. In this project we are
specially analyzing the issues of human capital of an organization when taking business
internationals. Issues may be related to recruitment and selection, training and
development, performance management, compensation plans, career development and the
expat management. One more important part of our project is through light on how to
manage or handle the subsidiary what should be structure of it also we have discussed in
detail what would be the role of Human Resource department to brining the business
internationally.
Acknowledgement………………………………………………………… I
Executive Summary ……………………………………….……………… II
Company Background………………………………………........ 04
Mission and Vision ……………………………………………... 04
Strategic Human Resource Management at Butterfly………….. 04
Competitve Strategy of Butterfly……………………….………. 05
HR poloicies in International context ………………….……….. 06
Department of Butterfly …………………………….………….. 07
Home Country organization Strurctur……………...…………… 08
Butterfly Organic Organization…………………………………. 09
HR Roles,Responsibilites before and after going international… 10
Reasons of selecting Bangladesh……………………………….. 11
Subsidiry Structure……………...…………………………........ 12
Training & Development at Butterfly………….…..…………... 13
Expats Relocation and Repatriation at Butterfly......…………… 19
International Labor Organization………………..……………… 20
Recruitment Strategy at Butterfly………………….…………… 21
Butterfly Recruitment Process………………………………….. 23
Performance Appraisal at Butterfly…………………….………. 24
Compensation to Expat ………………………………………… 27
Butterfly Textile Mills Limited stated its business in 2004.it is operating in Faisalabad
industrial sector 34-b. The company is one of the premier manufacturers of textile
products in Pakistan, fully equipped not only with the modern machinery and equipments
but also professional management and staff. The growth of the company has proved
combination of excellence. Butterfly Textile, activities started from the spinning of cotton
and extend to weaving, processing and finishing.
• Annual turnover 5 billion Rupees
• Most Modern unit of Pakistan
• Green Company
• 2000 Employees
• ISO 9001 Certified
Mission Statement
Vision Statement
"To transform the company into a modern and dynamic yarn, cloth and
finished product manufacturing company”
• Cost leadership
• Innovation
• Quality
Butterfly have opted quality strategy for new setup. Already we are operating in Pakistan
with quality strategy.
Butterfly has selected HRM strategy according to the business strategy. Different
strategies acquire different employees with different techniques and different role
behavior and same process we would be doing for new set up.
• T&D of employees
Human resource (HR) policies refer to the recruitment, development and deployment of
human capital .In the internationalization context, this could be understood to include
choosing people with the right skills for international management, training them through
education and international assignments, deploying them effectively throughout the
organization, appraising them correctly, and finally establishing a satisfactory career path
for them. Success in today’s hypercompetitive markets has more to do with innovation,
speed and adaptability and less to do with economies of scale, technology and access to
capital.
Butterfly HR system:
• Cross-trained teams
• Information sharing
• Participatory mechanisms
• Group-based rewards
Organic organization
Butterfly is a organic organization its design is highly adaptive and flexible it would be
changing their policies and procedures according to the changing environment. The
characteristic of our organization are stated below
• Decentralization
• Low formalization
Unity of command
Butterfly strictly following the basic management principles that each person would report
only one.
Chain of command
Subsidiaries organic gram clearly shows that which person would be reporting to home.
Span of Control
O-Openness
C-Confrontation avoidance
T- Trust
A-Autonomy
P- Proactiveness
A- Authenticity
C- Collaboration
E- Experimentation
Basis of Internationalization
• To Expand Sale
• Acquire cheap Resources
Bangladesh has a population of 133.40 million making it the most densely populated
country of the world. The state language and mother tongue is Bangle. English is widely
spoken and understood. Bangladesh is Located in the north-eastern part of South Asia..
1. Abundant labor forces.
2. Low cost energy and natural gas.
3. Labor and power are cheap in Bangladesh as compared to India, Pakistan and
China.
4. Labor cost is only 23 cents/hr. whereas, in India, Pakistan and China the labor
costs are 43, 41 and 89 cents/hr, respectively.
5. Gas burned energy cost in Bangladesh is less than two cents/KWH in compared to
9.33, 6.72 and 7.84 cents/KWH in India, Pakistan and China, respectively.
6. Dedicated and sincere work force, which are eager to work extended work hour.
7. Bangladesh had a tremendous opportunity to gain access to European and the U.S.
market through MFA agreements for its Ready Made Garments (RMG).
8. Bangladesh has now become a significant supplier to both North America and
Europe. More than 50% Bangladesh garment exports go to the countries of
European Union, and 44% to the united state.
9. The Government policy of liberalization of the economy encouraged private sector
investments.
10. The Government introduces a support system for the textile industry that
included Fiscal Benefits, Financial Benefits and Institutional Support.
11. The textile policy introduced a new tariff structure designed to stimulate
the growth in Backward Linkage Industry (BLI) to encourage local yarn
productions.
Availability of high quality and comparatively cheaper Uzbek cotton and also enjoying
Indian cotton
Training at butterfly
The butterfly Mills adopts different training programs for enhancing the skills of its
employee. In Butterfly Mills following methods are used for employee training
• Coaching
• Mentoring
• Job rotation
Peers Support
Peer support can also help in transfer of training, if the trainee is the only one who is
receiving training in the department then probably the experienced peers might put
pressure on trainee to forget the training and work. This situation also hampers in transfer
of training. However, this situation is avoided by involving the entire department in
training at butterfly, also by encouraging the learning culture in the organization
Supervisor Support
Can affect their employees learning in number of ways, if the trainee is motivated to learn
and receives full support from their supervisor, then this support in turn encourages the
employee to learn as much as possible. Also, supervisor can also reduce the negative
factors of training, such as, the work that piles up during training that makes the employee
uncomfortable and employees’ negative perception about the training program.
Trainer Support
Can also have a positive impact on the transfer of training. Gone are the days, when the
trainers’ role used to get over once the training program is done. Trainers’ role is now
extended to the work place also. Besides training, trainer’s role is to keep a check on how
trainees are performing and help them and discuss with them if they encounter any
problem in the workplace.
Climate
Apart from supervisor support, peers support, trainer support, Climate factor also
comprises of company polices, attitude of upper management towards employee, towards
training. If these factors are positive then the climate will also support the transfer of
training. It is the organizations foremost duty to make the employees realize through these
factors that adequate amount of time and resources are spent on them for their
professional and personal development.
Culture
Reward Systems
If the learning outcome that helps in achieving the objectives is linked to reward system
then the probability of the success of training would increase.
1. Analyze and identify the training needs i.e. to analyze the department, job, employees
requirement, who needs training, what do they need to learn, estimating training cost, etc
The next step is to develop a performance measure on the basis of which actual
performance would be evaluated.
2. Design and provide training to meet identified needs. This step requires developing
objectives of training, identifying the learning steps, sequencing and structuring the
contents
3. Develop- This phase requires listing the activities in the training program that will
assist the participants to learn, selecting delivery method, examining the training material,
validating information to be imparted to make sure it accomplishes all the goals &
objectives.
4. Implementing is the hardest part of the system because one wrong step can lead to the
failure of whole training program.
5. Evaluating each phase so as to make sure it has achieved its aim in terms of
subsequent work performance. Making necessary amendments to any of the previous
stage in order to remedy or improve failure practices.
1. Motivation
2. Knowledge, Skills, and Attitudes (KSAs)
3. Expectations towards Training
Knowledge, Skills, and Attitudes (KSAs) – It is important that the selected trainees
should have the right KSAs for the training because even if the methods and contents of
the training is good but the candidates do not have the right KSAs, the training program
will fail. Also the training methods would not be effective if the candidates are lacking the
desired skills. Therefore, proper selection technique is must that would ensure that hired
have the requisite KSAs to be successful in training.
The ILO is the global body, founded in 1919, responsible for drawing up and overseeing
international labor organization. Working with its Member States, the ILO seeks to ensure
that labor standards are respected in practice as well as principle. Total member countries
are 183.and Bangladesh is also member of it. When we would be operating in Bangladesh
our company would keep international labor stander in mind while making HR polices
and standard. Stated below are main themes on which our company must have complete
information of ILO. This would help us in following international labor standard.
• Child Labor
• Decent work environment
• Economic and social Development
• Employment Security
• Equality and Discrimination
• Forced Labor
• Freedom of association and the right to collective bargaining
• Safety and Health at work
• Social security
• Working Conditions
Recruitment strategy:
Decentralized Recruitment
Butterfly Mills would be using polycentric recruitment approach for new subsidiary but
targets are given from parent country. At the start we would be following best
practices of home country and then we would be making them best fit according to
new market, culture environment. Lower level staffs as well as top level executives
are recruited in a decentralized manner. Executive level recruitment would be done
with the consultation of parent country.
Internal Recruitment:
Internal Sources of Recruitments are given below
Job Posting
Advertising of job openings to current employees via bulletin boards or intranet,
newsletters, or personal letters. Filling a job opening from within the firm has the
advantages of stimulating preparation for possible transfer, or promotion and increasing
the general level of morale.
The first and foremost preference of butterfly Mills is to hire the employees through
internal recruitment and giving existing employees more chances to develop their career.
For this purpose butterfly Mills firstly use Internal Job Posting to fulfill the vacant seat.
Transfers
The employees are transferred from one department to another according to their efficiency
and experience
Promotions
The employees are promoted from one department to another with more benefits and
greater responsibility based on efficiency and experience
The dependents and relatives of deceased employees and disabled employees are also
done by butterfly so that the members of the family do not become dependent on the
mercy of others.
External Recruitment
To search the employee to fulfill the vacant seat outside the organization is called external
recruitment. HR Department can use various approaches to locate and attract external
candidates like Government agencies, private employment agencies, recruiting
consultants, executive search firms, and educational institutions.
Butterfly Mills run the external recruitment campaign itself and do not use the other
sources like agencies and search firms.
• By Newspapers
• By Website
• By Universities
• By referrals
• Walk-ins
• Labor Contractors
• Placement Agencies
• Poaching/Raiding
The recruitment process is immediately followed by the selection process i.e. the final
interviews and the decision making, conveying the decision and the appointment
formalities.
Identify
vacancy
Conducting
Prepare JD
interview and
and person
decision
specification
making
Recruitment
process
Arrange Advertising
interviews the vacancy
Managing the
Short-listing response
Appraising the performance of managers is very important, but at the same time, it is one
of the most difficult tasks in the organization. It is difficult because most of the
managerial work cannot be quantified i.e. it is qualitative in nature like leading his/her
team, guiding, motivating, planning etc.
Therefore at butterfly, the two things to be noted and evaluated for the purpose of
appraisals are:
Performance as managers
the responsibilities of managers include a series of activities which are concerned with
planning, organizing, directing, leading, motivating and controlling. Managers can be
rated on the above parameters or characteristics
Also known as the "Up or out policy", the rank and yank strategy refers to the
performance appraisal model in which best-to-worst ranking methods are used to
identify and separate the poor performers from the good performers. Then the action
plans and the improvement opportunities of the poor performers are discussed and
they are given to improve their performance in a given time period, after which the
appropriate HR decisions are taken. Some of the organizations following this strategy
are Ford, Microsoft and Sun Microsystems.
Conclusion
Human are the valuable asset of every company. It is human resource that becomes the
source of core competence of a company. Organization must recruit, select develop
manage and use their human resource strategically to get competitive advantage in global
market.