Human recourse plays a major role in the success of the company and correlates with HRM policies and requires matching with the firm’s strategy and goals. There are three major staffing approaches the ethnocentric, the polycentric, and the geocentric (Hill, 2009, p. 525). The polycentric staffing policy in a MNE requires host country nationals are recruited to manage subsidiaries in their own country, while parent country nationals occupy key positions at corporate headquarters (p. 526). The geocentric staffing policy requires that the firm seeks the best people for key jobs throughout the company regardless of nationality (p.527).
In our case two approaches could be most effective to achieve maximum local responsiveness: the polycentric staffing approach and the geocentric staffing approach. These approaches will most likely most effective, because using the polycentric approach will implement multi domestic strategy, add edge being a local company, and at the same time, by using the geocentric approach, and by choosing best possible people for training jobs, SUBWAY® will provide local franchisees owners with a help and training from a parent company .
Stuffing should be done based on cultural characteristics and ethical culture. Diversification could be a major key here. Training is the process of altering employee’s behavior in a way that will help company to achieve and maintain their main objectives and goals. Development of employees and training is vital to the success of SUBWAY®. For a fast-food chain it s also important to have on site, pre-opening training to educate management and provide them with experience before they are dealing with customers.
SUBWAY® has a very easy non cooking concept that allows the owners even without previous restaurant management experience to succeed with the SUBWAY®. There are three major training components: technical skills, interpersonal skills, and cultural awareness. ? Therefore training should be provided with a goal in mind of understanding of the Brazilian local culture. Practical and direct training is the best approach, because this approach has specific learning targets. SUBWAY® provides intensive two weeks training and employee orientation, training on the job, mentoring, and leadership development.
Here is what Razdan wrote in the article for Franchise-Plus “After getting started the franchisee is provided with an operations manual and video, field support and continuing education through periodic newsletters, e-mails, DVDs and training classes. In addition to this, a franchisee coordinator who is also the main contact person, and field support by a representative who helps kickstart the business and provides ongoing operational evaluations, are also at the franchisee’s service” (Razdan, 2006). Performance Appraisal Performance appraisal will be applied accordingly with headquarters policies.
Performance appraisal contains disciplinary action, demotion, separation or termination. In addition quarterly written performance evaluations of both staff and managers would be very helpful. Other great elements are monthly meetings with key members about providing innovative ideas for improving business, brainstorming where members can discuss different opportunities and develop new goals and objectives. Document employee performance and provide support for increases, promotions, or terminations. Timely feedback is necessary, especially to poor performers.
Appraisals should be unbiased, good and the bad aspects of an employee’s performance should be recorded accordingly. Appraisals should not be used to discriminate against employees on the basis of race, religion, age, gender, disability, marital status, pregnancy, or sexual preference Compensation Compensation is one of the major key and includes the following elements: wages, salary, bonuses, profit sharing packages, commissions, and etc. It’s a solely local company designs to make a decision about bonuses, profit sharing packages, commissions and incentives.
Benefits and employees assistance program is another way of employee compensation. Compensations are to be determined based on the staffing policy and Brazilian pay rates for hourly positions are to be determined based on the Brazilian minimum wage which is approximately 500 Brazilian reais per month. If we are taking a polycentric staffing approach, meaning that we will have local management; on top taking into consideration the experience level, skills of the person, and the amount of training needed for the position, after that start up salaries for these employees should be determine. Read about components of staffing
Action Plan Indentifying Human Resources for global business is very challenging. There are many factors involved like the diversity of the market and in the workplace, the size of the labor force in the area where the stores are planned to be open, compensation plan, training and support, and staffing policies. HR management can choose between three major staffing policies, and it is vital that the policies should be directly linked with the company strategies.
If SUBWAY is following multi domestic strategy, most likely the most appropriate staffing policy would be polycentric staffing approach. Understand market and demographic changes. HR should assist with hiring and firing, provide complete job analysis such as job description and job specifications. SUBWAY should also implement the best possible training and support for the new franchisee owners in order to help them to promote and support company image and brand name.
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