Management Structure - Sky Global Wine Company - Essay Example

? Sky Global Sky Global Wine Company Sky Global Wine Company is a wine marketing wine products from Australia thus the company is operating on consumer staple sector. The company is opening its subsidiary to boost its sells in the international market. The company will be marketing its wines in France. After a thorough research, the company found France in a good position to advance its company’s fortune. The company is targeting to vast market of wine users in the subsidiary country. The headquarters of the company is in Australia while the subsidiary will be based in France. The nature of the subsidiary office will be basically meant marketing because the products will be processed in Australia and shipped to France. France has a variety of races and people with different lifestyles (Sparrow, Brewster, & Harris, 2004). Though it can be said that French markets is diverse, provision of good services makes consumers buy the product in the market. Justification of the choice The major reason for the establishment of the subsidiary is mainly due to the potential market available in the country. Traditionally French people had some specific ways of identifying the cepage and terroir (Edwards, 2007). The terroir identify the wine in regards to the place where the processing was done, the taste of wine from that region and skills that the producer has. In the other way, cepage identifies wine by the type of grapes used in the process of making the wine (Edwards, 2007). For many years the French wine consumers based their choice of wine on terroir however a new trend is emerging that preference has shifted to being based on cepage where wines were associated with the grapes and its taste. Basically this is an opportunity as most of the foreign wines are gaining acceptance in the market and therefore Sky Global Wine Company could not wait to seize the opportunity (Edwards, 2007). Management Structure Structure of management between the headquarters and the subsidiary With the new subsidiary in place, it is important to ensure that the company has the most important staff that will coordinate its activities in France. For efficiency the following posts were found to be necessary for smooth running of the business. The manager in the Subsidiary country will coordinate with the headquarters on the operation activities Country Manager Manager in charge of Marketing Chief Wine Technologist Manager in charge of Production Finance Manger Human Resource Manager Country Manager The activities revolving around the success of the company will be mainly based on the manager. The company will place an experience manager from the company in order to facilitate the experience that has seen the company grow in its international market (Price A. , 2007). It will be necessary to have a manager from the parent country because it is more likely to have a wide selection to make from. Manager in charge of Marketing The manager in charge of marketing should be from the host nation basically this is because of the cultural and language understanding (Sparrow, Brewster, & Harris, 2004). It will be important to work with the person conversant with the environment that than to just make a choice Chief Wine Technologist Since the brand has gained its international reputation through its quality and test, it will be equally important to ensure an expatriate who has vast experience in working for the company takes the mandate. Manager in charge of Production Finance Manger Human Resource Manager Most of the employees will be from the subsidiary country since their presence will be an added advantage due to their experience working in the country. They are perfectly in a good position to deal with issues arising from their own country. Comparison between Peoples management in the host country and the subsidiary country People’s management style in Australia In Australia the sense of equality in an organization is highly valued to extend that the manager should not behave like a superior. Authoritative management is viewed as intimidation and is likely to cause rebellion among employees. A consultative approach would rather be treated with respect because it is inclusive varied opinions and encourages supportive ideas. A manager can be challenged outright in the public without a problem (Peter J. Dowling, 2008). This is viewed as profession participation and not being disrespectful. The major concern is getting to work and completing it with competence and not the protocol followed. The interaction where the junior debates with the seniors may look somehow like a confrontation however it is just a health discussion which leads to effective management and achievement of target goals. A manager in Australia wants to be associated as the member of the team and be seen by employees as a colleague and not a person who only associate with other managers. Manager’s role A successful manager in Australia values the knowledge and experience that junior employees have. Employees expect to be consulted by their managers in their areas of specialization and decision that might affect them or the organization. The managers tend to manage their employees in a task oriented manner with aim of achieving high productivity and employees doing their job effectively and professionally. Approach regarding change Businesses in Australia are flexible and are ready to adopt change. While change his difficult to adopt, it is important in the concept that change will bring prosperity. Risks taken cannot be condemned of a failed future but it is considered a process of learning that will ensure a safer future. Managers are required to focus on opportunities and visions that will ensure positive development of the organization Priorities and time Australian culture adheres to a controlled time and expects time schedules to be adhered to by all employees. Missing deadlines shows low efficiencies and poor management. Since the Australians respect deadlines, it is expected that each the managers do not consider working overtime or in the weekend. Success of an individual will depend on an individual commitment to meet deadlines. Decision Making Employees are expected to contribute in decision making of the organization they work for. Doing so by employees is likely to increase responsibility and be able to be conversant with all the requirements that each of employees will b required. Team work Australians does not expect to be treated by the managers as juniors. They expect to work as a team and no single person should be treated as the major contributor or rather better than others in terms of contribution. Communication styles Even though Australians do not recognize intermediaries, the culture of building relationships is paramount. The same relationship built for long will help in a long term business success in terms of networking. Most senior management and executive members from different organizations know each other. Basically it is because there is little immigration thus people built a long relationship amongst each other. Success in management of cross-culture will ensure this is achieved. From this management process, employees are likely to build self confidence and in the company. Their desire to work will increase thus enhancing high productivity. The involvement of juniors employees in the decision making process will enhance cooperation and senses of responsibility. Better ideas are generated in the process People’s management in France Business setups in France make sure that there is a cross-cultural harmony and that each employee is given equal respect. Basically there insist in a formal setup where person opinions and behaviors are put on hold. Colleagues are treated with respect and the opposite is truly equal. The type of communication doesn’t necessary apply as both formal and informal are common and will depend on the relationship between employees (Peter J. Dowling, 2008). Managers’ role The behavior of the French business management is based on courtesy and formality. Most managers of French organization have high academic credentials with a similar academic background. They believe in intellectual management and they would probably choose a person with excellent knowledge in management to take part in decision making. Basically only people with experience and good credentials are allowed to take part in decision making process (Newlands & Hooper, 2009). New employees in French companies are taken through a thorough orientation to allow them get used to the culture of the organization. From the orientation, it makes some employees submit to the management while some will feel they should voice their views at some point. Change management France has a medium feeling towards change. It believes in intellectual management and new developments have both been embraced by organizations and employees. Accepting change in France is conditional as it has to prove itself that it is better than the current system. Fears in the adoption of change are that of embarrassment and the negative impression that might display after change. Therefore the need for a thorough check is a policy in France (Newlands & Hooper, 2009). Calculated risks are seen as a learning process and that the organization will achieve better in future from the experience it went through. Failure causes a long low esteem among individuals and group of individuals in a company. Due to the fact that such developments may occur, it is important for intellectual management to be embraced by organization in handling the organizational low esteem. This is quite important especially when conducting meetings where employees participate and make their contributions. Time management Adhering to time schedule is a culture in France and everyone is expected to do so. A missing deadline is basically a sign that an organizational management is poor and needs to adopt better time management because employees wouldn’t be happy. People are having time schedule at their work and also at their homes. Therefore any time mismanagement will result to inconvenience thus low performance (Mathis & Jackson, 2010). A good cross cultural management will depend on individual’s ability to meet a specified deadline. Decision making Hierarchy is the basis of management in France thus every decision made is basically according to the protocol. Ranks are the major determinants in the decision pertaining company’s decisions. Decisions are done at the management level with intellectualism being employed. There is little involvement of the junior staff in the management. Team work France embraces team in its organizations. The communication from the teamwork is quite direct. Generally in a team, roles are assigned to individual and individuals will be responsible for their work more and the team the work for. The success in the management of cross cultural relation is to cater the talent and knowledge that individuals in the group have (Mathis & Jackson, 2010). The leader will be considered the decision maker and that it holds all the powers to make decisions on behalf of the organization. Though leaders make major decisions, the team is usually applauded for the job well done and not a single person. Communication styles French organizations embrace formality and fairness. French is the official Language however English can still be spoken in official functions. Due to high representation of French language in the country, it is important to consider French as the formal language to avoid cross cultural misunderstanding. Due to the protocol system, it expected that business will be conducted very slowly and thus patience will be an important way to cope with it in order to avoid having a rush. It is advisable to avoid confrontation or tactics that tries to put more pressure on the management (Newlands & Hooper, 2009). French likes analysis of details regardless of the time taken to complete the proposal. They like debating skills that display intellectualism and be rational. Everything formal and thus there is no need to more friendly since it would be productive in many cases. The management style is important because of its precision of work and a clear command style. The rooms for mistakes are limited thus employees adhere to the procedures and norms of the company without too much questioning. Typical people management mechanisms in the organization Management Mechanisms France Recruitment Recruitment in France is basically career based and everyone getting employment go through a competitive process which is usually centrally administered in organizations. While administering the recruitment process, the final selection is usually done by the management and not the seniors and not based on professionalism. Performance Rating the performance of individual employee in the French companies is usually done by filling form that reflects the timesheet, the quality of output from employee, interpersonal skills and competence in work (Deb, 2006). The form is filled by the immediate supervisor and delivered on a yearly basis. A good performance may result in performance related pay aimed at motivating employees to work extra harder and increase output of the company Setting of pay Pay for each employee will depend on a number of factors which includes professional qualification and experience. Promotions All employees have a chance to be promoted depending on their performance and experience. The management level is reserved for highly qualified professional however employees inside an organization who meet the requirements may be considered and given an equal opportunity. Promotions are done competitively and all employees have the opportunity to get the promotions. Before promotions are done, the chosen individuals are given opportunity to get used to the system and its functioning (Deb, 2006). Internal mobility and training Employees working in an organization have access to training resources of the company where they are often trained within the company which would be important in decision making concerning promotions. Therefore individuals who want to be considered for promotion will have to actively be involved in internal training. Each employee is usually given a training of 3-5 days in every financial year. Working conditions The French working hours are flexible where each employee works for 8 hours a day. This basically recommended by law plus a annual leave. Industrial relations In some cases where employees are not satisfied with the management regarding pay or on working conditions, workers in France have freedom to air their views through industrial action. The limit however is in the motives of the strike. Therefore industrial disputes are highly recommended to done through negotiations between the employees and the management Management Mechanisms Australia All organizations in Australia are liable to comply with all employment laws in the country. Recruitment Recruitment in most companies in Australia depends on the type of company however most are competitive and based on experience and profession. Multinational companies have different ways of conducting their recruitment. Multinational companies prefer to use parent country (PCNs). In some cases where expert know may be required, a TCNs can be involved. Management of pay and performance Most international companies in the country make their payments to worker at the midpoint. This will depend on the industry where the company is based because characteristics vary for each of the companies. The job appraisal for employees is quite formal where almost all the multinational companies excise the process through a integrated scheme where all categories of employees are integrated. Other companies would prefer the use of 360-degree feedback strategy. Basically there is no specific kind of management that employees appraisals are conducted thus every company decides on their own. The countries has several performance measurement strategies with no specific or rather uniform format Training development of talents As part of development of human resource in organizations in Australia, companies conduct training and development on its employees. This will involve research in international markets and talent identifications (Deb, 2006). The major reason for talent development is mainly to ensure there is competence among employees to come fit into various working positions. In some cases some companies may prefer to train its employees on assessment compared to global competence. Employees are given opportunity to grow and the outcome of training is used for the purposes of promotions. Employee involvement and communication Communication in most organizations is both formal and informal. Employees are given chance to take part in the management of the company. The major decision making are contributed by employees. The mechanism is a strategy to ensure that the employees get motivated Promotions Though the culture of work in Australia is that employees hate being treated as juniors, there are promotions for those who perform well in their activities. Promotions are through a competitive process and a person selected for promotion will be treated by other employees as just a team leader. The promotions in the country are quite cool and employees wouldn’t feel any bad because of the promotions. Performance Performance of individual employees depends on hard work and determination. Though much of the work is done in teamwork, the performance of an individual is paramount towards the overall success of the company. It is therefore quite easy for the management to check the performance of each employee through filling of forms that indicate attendance to duties and the quality of work. Companies however have different approach to justify the performance of employees (Harzing & Ruysseveldt, 2004). Working conditions Strict deadlines are basically what Makes high performances in most companies. Employees are required to adhere to the deadline in order to enhance their performance. Companies in Australia are mandated to ensure that employees get the good working environment. This has been enabled with presence of employees union where they air their views whenever they feel suppressed by the management (Harzing & Ruysseveldt, 2004). Recommendations i) People management practices and processes which should be changed for use in the subsidiary; Australia and France share some management styles such as the respect given to each employee by the company however there are others which do not match completely. The kind of management in France has been identified to be intellectual based while that in Australia based on teamwork activity. The advantages differ and it would be quite important for the management to consider some that might work well in the subsidiary country. Considering the fact that protocol is a slow and cumbersome process, it would be important for the company to introduce teamwork among employees and the management. The process is quite simple and fast for operations to be undertaken. Issues of management would be dealt with even faster because the management will be based on professional manners. Allowing employees to contribute professionally to the decision making is more likely to help the company gain access to the market and probably shine the market where protocol is dominant. French population comprise people of all races similar to that of Australia therefore the management style would suit most people who are tired because of protocol and bureaucracy that has undermine many business. The management style isn’t completely new because even workers in French companies relate in way that suggests that the method effective though it is informal. Therefore introducing it would increase the chances of offering good services to the employees from all parts of the world. ii) the people management processes which should be devolved to the subsidiary, for it to decide upon itself; The decision making process in both countries are quite different because in France, decision making is done from the management while in Australia, it is done by the management with the assistance from the junior staff. This process can be beneficial to the new manager to the country. Basically these because the manager will be expected to be Australian while the other members of the management team and workers are likely to be from France (Stahl & Bjorkman, 2006). For the manager to make informed decisions, consultations with the juniors will play an important role. This will be quite important for the manager however the decision whether to involve the junior will depends on him. This just gives the freedom to plan his activities with the workers. iii) The HR processes which should be strategically controlled from headquarters in relation to the organisation worldwide.” The HR processes that should be controlled from the headquarters should be mainly human resource planning that involve hiring, training, evaluation and promotion. This will ensure that the quality of service that the company offers remains the same globally thus the objective of the company can be achieved (Stahl & Bjorkman, 2006). To extend, the performance of the team should also be evaluated in the headquarters so as to ensure all subsidiaries can have the same working conditions and representation of manpower. Basically the subsidiary should be able to work with headquarters and all its subsidiaries harmoniously References Briscoe, D. (2012). Global HRM. New York : CRC Press. Briscoe, D., Schuler, R., & Tarique, I. (2012). International Human Resource Management, 4E. Chicago: CRC Press. Burgess, K. J., & Connell, J. (2006). Temporary Work and Human Resources Management. New York: Emerald Group Publishing. Cieri, H. L., & Kramar, R. (2003). Human Resource Management in Australia: Strategy, People, Performance. London: McGraw-Hill Education. Dash, A. &. (2007). International Hrm. Delhi : Tata McGraw-Hill Education. Deb, T. (2006). Strategic Approach To Human Resource ManagementConcept, Tools And Application. New York: Atlantic Publishers & Dis. Dowling, P. J., Festing, M., & Engle, A. D. (2008). International Human Resource Management: Managing People in a Multinational Context. London: Cengage Learning EMEA. Edwards. (2007). International Human Resource Management. New York: Pearson Education. French, W. L. (2006). Human Resources Management. Cornell: Houghton Mifflin. Hartel, C. E., & Fujimoto, Y. (2010). Human Resource Management. Sidney: Pearson Education Australia. Harzing, A.-W., & Ruysseveldt, J. V. (2004). International Human Resource Management. London: SAGE. Keely, C. B. (2009). Globalization and human resource management: nonimmigrant visa strategies and behavior of U.S. firms. Texas: University of Texas. Loosemore, M., Dainty, A., & Lingard, H. (2003). Human resource management in construction projects: strategic and operational approaches. Munich: Taylor & Francis. Mathis, R. L., & Jackson, J. H. (2010). Human Resource Management. London : Cengage Learning. Newlands, D. J., & Hooper, M. J. (2009). The global business handbook: the eight dimensions of international management. New York: Gower Publishing, Ltd. Peter J. Dowling, M. F. (2008). International Human Resource Management: Managing People in a Multinational Context. London: Cengage Learning EMEA. Price. (2011). Human Resource Management. London: Cengage Learning. Price, A. (2007). Human resource management in a business context. London: Cengage Learning EMEA. Rao, P. L. (2008). International Human Resource Management: Text and Cases. Delhi: Excel Books India. Schuler, R. S., Dowling, P., & Smart, J. (2008). Personnel/human resource management in Australia. California : the University of California. Sparrow, P. R., Brewster, C., & Harris, H. (2004). Globalizing human resource management. London: Routledge. Sparrow, P. R., Brewster, C., & Harris, H. (2004). Globalizing human resource management. London: Routledge. Stahl, G. K., & Bjorkman, I. (2006). Handbook of Research in International Human Resource Management. London: Edward Elgar Publishing. Varma, A., Budhwar, P. S., & DeNisi, A. S. (2008). Performance management systems: a global perspective. New York: Taylor & Francis. Zanko, M. (2003). The Handbook of Human Resource Management Policies and Practices in Asia-Pacific Economies. Sidney: Edward Elgar Publishing. Read More