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    Effective application of standard human resource practices

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    I need assistance in designing a program that structures incentive pay and links it to a China manufacturing SME's organizational strategies and effectiveness

    Human resource professionals have been trying to elevate the stature of the HR function in organizations by linking HR more specifically to organizational strategy. In the past, and from a merely economic perspective, HR has traditionally been viewed as a cost center, rather than as the vital resource to the organization that it is. HR professionals increasingly need to justify the ROI for programs that they recommend.

    However, in this case I need you to specifically link HR initiatives to organizational strategy and effectiveness. Begin by imagining that you work for a global consulting firm and have just completed several of years of work stationed first in Australia, then in Vietnam, providing human resource management consultation to small and medium sized enterprises (SMEs) in those countries. Your company is expanding into the China market, and has reassigned you to rapidly developing provinces in China to leverage the firm's SME HR consulting expertise in China, specifically in the area of manufacturing SMEs and sales.

    Follow the steps set out by Holmes (2005) and Becker and Huselid (2003), so that you can:
    Design a program that structures incentive pay and links it to a China manufacturing SME's organizational strategies and effectiveness

    You can assist me in this assignment in a generic way, or you can search for an article about a small manufacturing enterprise that you would like to design a program for. It is fine to make some educated guesses and approximations in this case. Instead of providing a detailed blueprint for the structure of your case, I'd like to offer you the flexibility to design your report in the way that you think will make the best argument to the SME senior management, as there are many ways in which you could approach this assignment.

    Please prepare a 4-5 page paper, not including cover and reference page, double spaced, 1" margins, in which you:
    1. Discuss the effective application of standard human resource practices in small to mid-sized manufacturing enterprises (SMEs), and the ways in which they differ from HR practices in large corporations.
    2. Draw upon at least four of HR initiatives to organizational strategy and effectiveness.
    3. Use headings and subheadings to clearly show the structure of your analysis.
    4. Be sure to include a reference page of references used for analysis described above.

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    Solution Preview


    Incentive Program for SMEs Manufacturing firms in China

    Presently, the business services industry has become comparatively young and wealthy industry. SMEs represent the small and medium size enterprises, which comprises more than 70% business service industries. IT has proved that the small and medium size enterprises are entirely different from the large multinational firm, because it is comparatively close with their customers, suppliers and vendors as the large firm are not (Ganster, 2007). On the other hand, the SMEs cannot form alliance as the large firms do in the same of different business areas. In addition, it is also researched that the evaluation and improvements in the large firms are quite good in comparison to the SMEs (Hsueh & Tu, 1998).

    Frequently, the successful small and medium size firm trust on the technical competences and value proposition in a differentiable manner in the niche market segments (Mathis & Jackson, 2006). By means of this report, the readers would be able to understand the manufacturing industry in China and incentive pays for the China's manufacturing SMEs organizations.

    Risk in the Chinese Market for SME Manufacturing firms
    Before making an incentive pays program for SMEs in China, it is essential to understand the risk available in the market for SMEs. Some of these risks are as follow:
    In order to enter in the manufacturing industry in China, usually it is required the patent and license. It also demands to transfer the intellectual property rights to the local market. There was a high risk for the manufacturing firm because of lack of legal protections and lack of rights of intellectual property rights (Hsueh & Tu, 1998).

    Another risk in this market is relied on the fact that in comparison to the large diversified business firms, the SME firms are normally thinner. In order to dedicate the extensive time to the organizational performance and growth, it is necessary for the SMEs in China to delegate the authorities to key functional managers. The manager draws their attention to achieve the goals and target of the organization (Ganster, 2007).

    In order to take a direct review of Chinese industry and evaluates the opportunities and challenges in the manufacturing industry, the senior executives, engineers, director of supply chain process, etc. spends their time in the China (Kotey & Sheridan, 2004). ...

    Solution Summary

    The effective application of standard human resource practices are examined.