Selecting an Appropriate Candidate
Hiring professionals is an essential investment in achieving the company’s organizational objectives. Recommendations will be provided in order of priority according to frog design’s needs. Choosing a business development director will be the first decision due to the necessity to develop business in a relatively new business environment – Shanghai. Another step is recruiting an associate creative director because the company operates in a creative business. The third decision will cover employing a project manager director because this one is inseparable from the second step, but it is subordinate to the abovementioned choice. The last selection is of a human resource director, as frog design Shanghai is known for its low turnover rate and having no HR department (Eccles, Edmondson, & Chu, 2013).
Business Development Director
Before making this decision, it is essential to point to one peculiarity of Chinese HRM practices. In most cases, preference is given to Chinese natives (Wan-Yu, Wang, & Hsu, 2013). This practice is referred to as guanxi selection HR theory – choosing Chinese natives among other candidates in case of the same or nearly the same correspondence with position requirements (Chen, Wang, & Hsu, 2013; Warner, 2012). Based on the postulates of this theory, selecting Yang is a preferred option. Even though Thomas has lived in China for eight years, he is not a native Chinese. Together with the fact that other team members are not Chinese, hiring an Asian person would contribute to creating a multicultural environment in the workplace that is beneficial for international companies, such as frog design (Goldberg, n.d.).
Still, regardless of Yang’s ethnic background, it is not the only argument for recommending him for the position of a business development director. Here, it is imperative to point to valuing a high commitment to one’s organization in the Chinese business environment (Kim & Wright, 2010). Regardless, of this Chinese specificity, Yang’s past questionable commitment to Adidas and Puma should not affect the recommendation to hire him as one of the directors. It can be explained by the fact that he was internally selected because he was referred by one of Ying’s friends. It points to Yang’s particular interest in cooperation with frog design. Together with his network of clients and corporate experience, this interest makes him more valuable to the company than Thomas. All in all, Yang may be characterized as the Inspired Mind due to being open-minded, and it is one of the central requirements for being employed by frog design.
Associate Creative Director
Selecting an appropriate candidate for becoming an associate creative director is a complicated decision because both Joseph and Mark are perceived as a promising investment in the company’s further development. However, the recommendation is to give preference to Joseph. There are several arguments for pointing to this choice. First of all, unlike Mark, Joseph is a native Chinese. It is beneficial not only in terms of the program developed by frog design specialists themselves but also the specificities of human resource management in China. Like in most other Chinese firms, the preference is given to native Chinese because they have a better understanding of the local business environment and ethnicity-based specificities (Zheng, 2013).
More than that, even though Joseph is a native Chinese, he has a vast experience of working in Europe and the United States. Even though this experience is not as impressive as in the case of Mark’s cooperation in Siemens, Joseph worked in numerous companies around the globe. It means that he will be able to establish the needed connection between the members of a multicultural and diverse team, i.e. overcome the so-called East-West gap (Liang, Marlet, & Cui, 2012; Xiaoya, Marler, & Cui, 2012). Another significant strength connected to the ability to construct the East-West bridge in frog design is the fact that Chinese companies commonly learn from the Western management practices (Cech, Yao, Samolejová, Li, & Wicher, 2016). In this way, having a person with such an extensive working experience in the Western world is precious, especially keeping in mind that frog design is as well a western company so that the risks of culture-based misunderstandings are minimal.
Still, it is critical to mention that all strategic HR decisions should be based not only on the potential benefits a candidate is associated with but also their correspondence with position requirements (Truss, Mankin, & Kelliher, 2012). In this case, it is extremely important to point to the ability to manage teams as well as excellent interpersonal skills. Unlike Mark, Joseph does not have a history of conflicts or misunderstandings with other team members. Because frog design pays special attention to creating a favorable environment in the workplace, it is another argument for choosing Joseph. Based on his characteristics mentioned above, Thomas is the Techmaster. That is why he could easily become part of the new company. Therefore, Joseph’s ethnic background, as well as his skills and the past experience of working with numerous western companies, are the foundation for recommending him for the position of associate creative director.
Project Manager Director
Regardless of the strong guanxi element in the Chinese human resource management culture, it does not necessarily mean native Chinese are always given preference to (Warner, 2012). Just like around the globe, special attention is paid to one’s background and HR practices common for a particular company (Cascio & Boudreau, 2012). It is the very case of selecting a candidate for becoming a project manager director. In this case, it is advisable to give preference to Brian instead of Thomas. There are several arguments for pointing to his candidacy. First and foremost, the company is aware of Brian’s successes because he was one of the managers in frog design departments in Amsterdam. In this way, there is no need for training a new employee because he is already acquainted with internal procedures and rules. More than that, selecting a current company’s employees complies with common HR practices deployed at frog design – internal transfer from another studio to the new location (Eccles, 2013).
Still, in the case of hiring the project manager director, it is essential to point to the past experience. Even though Thomas is an outstanding candidate, he has always worked in one company only. Regardless of working for one of the leading global companies for more than five and a half years, it is not enough for cooperating with frog design due to the increased risks of failing to cope with job duties because of the lack of working in different business environments. More than that, he lacks superiority in project management. In this view, Brian’s internal application together with his previous outstanding performance and significant interest in working in the Asian business environment are those factors that make him a better candidate compared to Thomas. Due to his client network, vertical knowledge in business development, and the ability to transfer content, Brian is the Specialist – one desired by frog design.
Human Resource Director
Hiring a human resource director is an important strategic decision. Keeping in mind that there was no human resource management department in frog design Shanghai and all of the HR functions were carried out by other departments, this choice is even more critical. In general, selecting HR directors should be based on an individual’s experience in managing human resources and being successful in cooperating with teams (Leopold & Harris, 2011). More than that, it is especially significant to focus on the sector background due to the existence of segment-related specificities in human resource management. Speaking of the Chinese business environment, the central role of the HR director is the creation of a sound organizational culture in the workplace – one that would properly address all needs of team members in relation to their position and ethnic-based requirements (Aung & de Pablos, 2016).
Based on the details mentioned above, the recommendation is evident – Vivian should be appointed for the position of frog design’s human resource director. To begin with, unlike Ada, she has experience in managing more than 300 people in a software company. Just like frog design, her company is international and operates in a creative business. It means that Vivian has enough knowledge and skills for entering the position right after the decision is made. It is as well true because she does not need additional time for learning the specificities of the company’s operation and descriptions of job positions.
More than that, Vivian worked in an international company located in Shanghai. From this perspective, she is not only aware of the Shanghai business environment but also knows how to address issues common for multicultural workplaces. All in all, she has the experience of working as a human resource director because she has been promoted to her company. In this way, regardless of the potential difficulties connected to hiring her away, Vivian is a better candidate compared to Ada due to her expertise in the field of managing human resources. More than that, based on the abovementioned characteristics, Vivian is the Master of Osmosis so that it will not be complicated for her to integrate into the new team and improve it, thus benefitting her new company.
Impact of HRM on Organisational Performance
It is a generally accepted assumption that deploying human resource management (HRM) is inseparable from positive changes in the performance of organizations. Even though there are many arguments proving that this statement is true, establishing the connection between HRM practices and organizational performance is a challenging process. All of the research findings pointing to the beneficial impact of human resource management will be provided later. As for now, it is critical to identify the central methodological problems in researching the relation between the two. To begin with, there is a significant challenge in determining the very concept of performance. In most cases, it is perceived as employee productivity (Sels et al., 2006). However, in fact, it can be viewed from the wider perspective, as organizational performance may as well include such determinants as turnover rates, the ability to operate within a given budget, corresponding with the identified organizational objectives and achieving them by the set deadline, the effectiveness of teamwork, etc. (Jiang, 2014).
More than that, there is a need for understanding whether the sector of the company’s operation and its size are associated with the influence of HRM practices on the performance of these companies. It means that the challenge is seen in the very process of selecting research sample because results obtained from mixing different companies (small, medium, and large organizations and those operating in varying sections) may not be the same compared to studying firms of a particular size or working in a particular economic segment.
Based on the methodological challenges mentioned above, there are several views on the connection between HRM strategies and organizational performance. Speaking of employee productivity, in most cases, the overall impact of human resource practices is positive. It can be explained by potentially increased employee involvement and commitment, improved communication and teamwork, and higher levels of motivation that keep an employee-driven to boost their productivity and benefit their company or organization (Sels et al., 2006; Tregaskis, Daniels, Glover, Butler, & Meyer, 2013). In addition, effective HRM strategies are associated with the creation of opportunities for personal growth – developing new skills and obtaining new knowledge – that is as well inseparable from becoming more productive in the workplace (Crook, Todd, Gombs, Woehr, & Ketchen, 2006; Posthuma, M. C. Campion, Masimova, & M. A. Campion, 2013). From this perspective, the overall positive influence of HRM practices on employee productivity can be explained by the fact that, commonly, three types of initiatives are deployed: skill-, motivation-, and opportunity-enhancing (Jiang, Lepak, Hu, & Baer, 2012).
Regardless of the overall beneficial impact of HRM strategies on employee productivity, it is essential to keep in mind that the outcomes may differ in case of varying sizes of organizations. In this way, small- and middle-sized companies usually experience more positive consequences of human resource techniques (Sheehan, 2014). It can be explained by several facts. First of all, small firms are commonly limited to resources. It means that they cannot afford to invest in technological development. Nevertheless, they still can invest in human capital development that is the foundation of organizational growth, especially is people are enthusiastic and motivated to benefit the company. Moreover, small organizations often lack external support. Therefore, supporting employees internally enhances their performance. Due to the increased employee productivity, competitive advantage is created (Sheehan, 2014). It means that not only employee performance is affected by implementing HRM strategies but also the overall organizational performance, including its position in the market and growth prospects.
Still, even though the positive impact of HRM on organizational performance is robust, it is as well critical to point to several specific risks and challenges aggravating the potential success of the implemented strategies. To begin with, the development and introduction of HRM techniques is a costly and time-consuming process (Crook et al., 2011). An effective strategy – one benefitting a company – should be designed in correspondence with the firm’s needs and resources (Tregaskis et al., 2013). From this perspective, human resource management may be cost-ineffective for some organizations. More than that, it is critical to remember that the positive outcomes mentioned above are commonly experienced in the long run. In this way, in the short run, HRM practices are cost-increasing, not value-creating (Sels et al., 2006). Nevertheless, regardless of potentially increased costs and requiring time for designing and implementing HRM strategies, they are beneficial if designed properly (Sels et al., 2006; Tregaskis et al., 2013).
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