Essay 2

Various Consideration of an IPO: Implication for Resourcehouse Ltd.

Hanh, Tran
Corporate Finance (MBA6081)
10 July 2016
Dr. Vanderpal, Geoffrey

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Executive Summary
By recognize the importance of human resource management (HRM) in the business nowadays, the
essay mentions the 7 functions of HRM with deep analysis about its value to the business. In
addition, being effect by globalization, HRM are facing with the tough barriers which is called
culture. Therefore, by applying the Hofstedes cultural dimension, and the research of Sahar
Meshksar about the scholar which is A comparative Study of HRM practices Based on Hofstede
Cultural Dimensions, the essay will cover its effect on each separate functions of HRM.

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Introduction
Nowadays, the organization are transforming the business thought. In the marketing field, people
are changing from the traditional marketing to E-marketing as the developing of Internet. In the
businesss perspective, the big organization such as PepsiCo, Coca Cola, Uniclever, or P&G are
changing their vision nowadays. The revenues, and profit seem to be go together with the benefits
of stakeholders. The Corporate Social Responsivity is becoming more vital in the company.
Following the trend, Human Resource field are not only related with training, recurring anymore,
but also focusing on the employees labour relations, their safety or health in workplace, and the
concern about the fairness in opportunities.
Functions of Human Resource
According to Mathis & Jackson (2013) defined HRM that the designing the management system to
be sure that the organization can utilize the human talent, and their potential to create the value for
the company, and to achieve the organizational goals (Mathis & Jackson, 2010). Shortly, human
resource is perceived as organization core competency of organization. Based on the Appendix 1,
there are seven functions for HRM, and the functions will impact by the outside factors that we
named PEST factors literately.
As the first function HRM, the HR manager need to set up the HR strategy to be sure that they can
maintain the competitiveness for the organization as well keep the HR efficient. In details, the HR
manager should analyse the outside and inside factors to find out the challenges that impact the
organizations benefits to set up the suitable strategy for the situation. As an example, in the year
2008, the economic was slowdown that affect the business of all most the countries in the world. At
that time, Lee Memorial which is the Health System Organization find out that their front line
workers waste much of the resources, and reluctant actions that increase the cost for the
organization (Mathis & Jackson, 2010). As the actions, the HR managers requests the supervisors to
be honest, frank discussion, and get more communicate with the staff. As the results, the workers
work as the team, they share their difficulty with the organization to get the sympathy for the tough
economic crisis. Then, the organization as their family, each workers understand that without union,
and responsibility, they organization will be dead, and they will lose their jobs. In total, Lee
Memorial saved 45 million USD for cost, and saved 200 positions for their own employees (Mathis
& Jackson, 2010).

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Another functions that just only concern in a couple of ten years ago is the fairness of employment
opportunity. One more time, globalization erase all the boundaries between countries. Therefore,
organization can reach many rich source for talented human resource such as from high tech Indian,
or low labour cost in China. However, there is a challenge that the workforce diversity exists in the
multinational company. It made the conflicts between people in the organization. Because of
different in culture, belief, religion, human will have different behaviour, perspective, or the level of
accept. Gender discrimination is the best example for the important of the HR functions. The
woman is hard to go higher position in organization in the Asian country that will be explained in
the next part (Meshksar, 2012).
Next, the staffing pay attention to the qualified candidate to fill in the job of the organization. With
the development of education nowadays, it is not hard to find out the well-educated candidate for
the position. However, the inconsistence organizational culture, the pressure of the work really
important to the recruiting and candidate selection. The wrong in job analysis, or information could
recruited the wrong candidate for the organization. In addition, the recruiting nowadays also request
the HR managers have some psychology skills to find out the demand of employees to be sure they
will suitable with the position, or be willing to work a long time.
Showing direction for employee is always the crucial functions of HR manager. HR manager need
to find the talented employees, and development to add the value for the organization. The most
attention of the functions is that manager need to identify the tasked based on different period of
time. For example, with the fresh employees, HR manager need to find the interest, and set up the
career planning to be sure that the employees can find their interest position (Mathis & Jackson,
2010). Later, on a few years, HR manager need to motivate, train, and developed their talents to be
sure that the employees be respected by the organization.
Compensation, incentives, or benefits are what the HR manager is concerned, and the employees
always looking forwards. Naturally, the main purpose of much employees is for the salary, and
position in the organization (Mathis & Jackson, 2010). Pay the right amount of salary for employees
will keep them to work hard for the organization. However, as time goes by, when the employees
spent a long term for the company, they will consider for another incentive to work for the company
or jump to another better organization. That should be a tough topic for the HR manager to know
their demand.

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Last but not least, risk management and worker protections is extremely need for the image of the
company, and the safe of employees. The word sexual harassment is the best example for the
functions. The issue nowadays happens in everywhere, the careless from the HR manager could
lead to the conflicts between employees with other, or they do not dare t work as the team. As the
result, it could impact the efficient of the business. Furthermore, if the HR manager do not have the
good solutions for that, the employees could ask the helps from legal courts that will much impact
the organization image in some cases. Moreover, another right of woman, or pregnant policy also
consider by HRM to make sure organization could make the concern the life of their employees.
Employee and labour relations management is the final functions of the HRM. In fact, the
employees is allowed to use the phone, email, computer only for business use. The employer can
check any email, or tracking what the employees did on the computer for the management purpose.
Unfortunately, the courts perceived that the actions is violate the privacy of the employees as well
their security. As the HR manager, they need to set up the suitable policy that could help to manage
the employees well, and do not break the law from the government is the hard topic for them.
Culture and HRM
Professor Geert Hofstede is the famous Dutch social psychologist in the culture field. In the year
1973, he introduced to the world his cultural dimension that is applied much in many people in the
world. The cultural dimension shows us a map in details about the explanation for the different in
the ways of doing business, perspective or beliefs in different country. The most interested point
from his research is we could compare different countries for our business purpose.
In HRM, the diversify in workforce is impacted strongly by culture. As mentioned about, the
different in culture could lead to the gender discrimination. According to appendix 2, Vietnam have
the high power distance which means that there is a gap between position in the society (Meshksar,
2012). That is a reason why in the Vietnamese society, much of the people are seeking for the
money, and position in the workplace. In contract, American seeking for their respect, and
recognition from the other than position. Therefore, in the multinational company, when
organization want to reward for Asian employees, the incentive or the motivation in the higher level
is much better than just the nice comment, or untangle rewards.
In addition, Vietnam have high masculinity cultural dimension means that the country are
emphasize the competition, and man have more power than the woman. As the results, in reality,
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Vietnamese man have more opportunities to go to the higher level on the organization. The woman
is inferior, and hard to change their position. That is a reason why in the public sectors, there is no
efficient in organization than the international company (Meshksar, 2012).
One of the best distinct point of the culture with HRM is the individualism, and collectivism. The
culture dimension concern about the degree to which organization weather they work as the team,
or they emphasize them self. With the American organization, they focus on the achievement of
individual rather than the team (Meshksar, 2012). However, with the Vietnamese team, although
one person works hard for the task, but much of the achievement will be share for the team as the
part of their culture.
Conclusion
Human is an asset of the company. It not only adds the values for the company in term of revenues
but also keep for the sustainability. Therefore, the right employees with suitable position is exempla
vital that need to consider by the manager. Thus, HRM nowadays need to concerns about the
outside factors such as global, economics, technology, legal, politic, social, and culture
References
Mathis, R. L., & Jackson, J. H. (2010). Human Resource Management (978-0-538-45315-8 ed.).
Masson, USA: South Western Cengage Learning.
Meshksar, S. (2012). A Comparative Study of HRM Practices Based on Hofstede Cultural
Dimensions. Institute of Graduate Studies and Research.

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Appendix
Appendix 1: HRM Functions

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Appendix 2: A comparative culture between Vietnam and American