A global staffing strategy is needed to be devised by a Human Resource manager or director when an organization breaks into other territories. It is important to manage the workforce effectively when such a big change is encountered by them. It is important so that they can adapt to these changes and maintain (or maybe even increase) their productivity. This will only happen if they are satisfied and motivated; hence, they need to be managed. In this paper, the Human Resource Director of Fairy Co. , a garment company, is asked to prepare a report on global staffing strategies by its CEO.
Fairy has expanded into Thailand as a result of acquiring a Thai garment company. The impact of this expansion and the solution to problems that will arise as a result of this will be discussed in the paper. The cultural and regulatory factors and their effect on organizational effectiveness will be considered. Recruitment and selection practices in staffing the newly acquired company will be discussed in detail. Finally, possible audit results will be anticipated by the Human Resource Director in this paper. Discussion Fairy Co. and Thailand
Fairy Co. is an American garment manufacturer and retailer. It makes high-end fashion apparel for men and women and sells them at its world-renowned, classy outlets. It uses pure fabrics combined with runway trends to produce fashionable and inexpensive items for men and women. The prices of Fairy garments are significantly lower than those of other local brands’. The company has ethical values and it follows a code of ethics. Its culture promotes rights of people and so, it does not wish to pay its employees any less than they should be and are paid.
At Fairy, it is ensured that employees are satisfied with their jobs and what they get out of it. Consequently, it has seen success owing to its affordable yet chic clothing and respect for the workforce. For this reason, it has decided to expand its operations into Thailand by acquiring a local Thai garment manufacturing company Aaroon Ltd. The question is: Why Thailand (or Why not Tokyo, Paris or Milan? ). Thailand is an attractive tourist destination. This will be very good for the company if it expands into Thailand. It will retain more customers because it will develop a larger consumer-base. Read about components of staffing
It will also help to increase the company’s brand loyalty. The ‘Kingdom of Thailand’ is a Southeast Asian country, with Bangkok being its largest and capital city. Asian countries are attractive tourist spots; Thailand is one of the major. Thailand is a beautiful country that has a blend of everything because it is divided into four regions; the mountains and forests in the North. It has rice fields, farmlands and tropical islands and long coastline of the peninsula South (The Official Website for Tourism in Thailand, 2008).
Thailand’s history makes it a major migratory junction and a holiday spot; therefore, it has a variety of ethnic minorities present in its population. This will be good for expansion as different people will know about the brand. The language spoken in Thailand is mostly not understood by untailored tourists. English, however, is spoken at most tourist destinations such as hotels and shops, etc. In cities like Bangkok, English is widely spoken (Tourism Thailand, 2008). The fact that Thailand is this international makes it an attractive spot.
The people in Thailand are very happy-go-lucky and they live life to the highest. They are merry. However, violence is also an issue in Thailand. People sometimes get violent. This threat of terrorism is a concern for many. These perceptions have increased after the bombings in Kuta (Asian Market Research dot com, 2003). This will be a little concern for Fairy. There is hardly any political instability in Thailand. The law is not very strict in Thailand also. Lastly but most importantly, labor is very cheap in Thailand.
It usually is cheap in Asian countries. But the great thing about Thailand is that it is known for manufacturing trendy and cheap clothes. This is one of the many reasons why tourists love shopping in Thailand. Trendy and inexpensive is the company’s motive. Also, the company leaves a small margin between its cost and price. In other words, its cost is high and price is low so it saves little. To increase profitability, Thailand will be great for Fairy. For all these reasons, Thailand is an ideal country for expansion.
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