HR issues in motivating.

HR issues in motivating.

Subject: Management

Your managing director/ CEO is concerned with the growing competitiveness of
the labour markets especially in terms of skilled and talented people. S/has
asked you to examine what HR issues should s/he be concerned with for
recruiting, motivating and retaining his/her best people. Prepare a report for your
managing director / CEO highlighting the issues that small-to-medium sized firms
currently face when it comes to reward and performance management of skilled
and talented people in the global market- place as well as what are some issues
that s/he needs to consider in the future. The group may choose to focus on
Australian organisations to illustrate their arguments.
Assignment Structure
The structure of the written assignment should include:
• €An introduction, where it outlines the argument or proposition that is
developed in the !assignment and a description of the assignment’s structure;
• €A main body that details a cogent argument or proposition supported by the
relevant academic !literature to answer the chosen questions. This section should
rely on convincing evidence to prove, develop, and/or illustrate the argument.
This assignment should also include an exploration of the implications based on
the analyses and arguments for the organisation.
• €A conclusion, summarises all the key points made and emphasizes the
conclusions drawn.
The referencing applied in this assignment should:
• €Contain at least eight academic references (see below for greater detail);
• €Use quality academic references (see below for greater detail);
• €Employ the Harvard system when citing references within the body of the
essay and in the !reference list (see below for greater detail).
!Assignment Style and Presentation !
The style and presentation of the assignment should:
– Be typed in double or 1.5 line spacing on one side only of single sheets of A4 paper;
– Employ 12 pitch readable font (e.g. Arial, Times New Roman, Garamond);
– Have a 3cm margin on both left and right sides of the text;
– Contain sound spelling and grammar.
– Unreferenced reports, or those that do not include a minimum of 8 references,
will automatically receive a grade of 64% or less.
– Reports will be marked according to the criteria shown on the marking guide
that will be handed out in the lectures/ tutorials.
– The title page of your report should list the names of your team members and
should include the following signed statement: !”This report is based on work
contributed by all members of my team”.
Referencing :
!Referencing is an important component of academic writing. Identifying the source of
arguments made is paramount to acknowledging others’ research work. When
referencing, students should be aware of the conventions required for citing intext
sources, the reference list, and what constitutes a suitable academic source.
The referencing applied in this assignment should contain at least eight academic
references, use quality academic references, and employ the Harvard system
when citing references within the body of the assignment and in the reference
list. The following paragraphs explain these issues in greater detail. !Citing in-text
• €The Harvard System of referencing places references in the
text, giving the author’s surname, !year of publication and page number, if
appropriate. Page numbers should only be provided in- !text when a quote
is used.
• €Footnoting should not be used to reference sources.
Footnoting should only be used to provide !additional information that
would otherwise disrupt the flow of the text or distract the reader.
• €Where a reference contains three or more authors, the first
time this reference is cited, all authors’ surnames must be stated (e.g. Ho,
Kummerow, & Iverson, 2007). Thereafter, the !citation contains the first
named author and then ‘et al.’ (e.g. Ho et al., 2007). !Reference list:
• €At the end of the assignment, the full details of only those
references cited in the assignment !text must be provided in the reference
• €References should be listed in alphabetical order by the first
author’s surname. !Academic references:
• €Students may cite the course prescribed textbook, but are
expected to move beyond this !resource.
• €Students should conduct their research of the literature from
academic journal articles and !academic books. A list of examples for such
journals can be found on in this Course Outline.
• €Academic references are articles and books which contain new
theoretical and empirical developments based on research studies. There
are several ways to determine whether the reference is an appropriate
academic source. First, academic articles are found in journals, not
professional and general magazines or newspapers. Second, academic
articles generally contain several sections: Abstract, introduction, review
of the literature/development of hypotheses, method, results,
analyses/discussion, and conclusion. Third, academic articles usually do
not contain pictures or photographs (not including diagrams, tables, and
graphs). !Finally, academic books offer new insights into the topic.
• €It is expected that the reference list of the student’s assignment
is not drawn solely from !textbooks. Textbooks are summaries of other
people’s work and do not contain new research !findings.
• €References sourced from textbooks (other the course
prescribed textbook), newspapers, !professional and general magazines,
internet sites, and the business press can be cited, but will not count
towards the minimum requirement of eight academic references.


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Human Resource Managment

Human Resource Managment
Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
•Explain how using group dynamics can aid in the change process and the process for working with different types of work teams in a planned change process.
•Providing examples, discuss how the group dynamics of teams can help leverage large-scale system changes.

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:
•What did you learn from your classmate’s posting?
•What additional questions do you have after reading the posting?
•What clarification do you need regarding the posting?
•What differences or similarities do you see between your posting and other classmates’ postings?


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Human Resource Managment

Human Resource Managment
Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
•Explain how using group dynamics can aid in the change process and the process for working with different types of work teams in a planned change process.
•Providing examples, discuss how the group dynamics of teams can help leverage large-scale system changes.

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:
•What did you learn from your classmate’s posting?
•What additional questions do you have after reading the posting?
•What clarification do you need regarding the posting?
•What differences or similarities do you see between your posting and other classmates’ postings?


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Do a research on postal telecom mobile……………………………….


Table of content

1. INTRODUCTION …………………………………………………………….……3



1.3 OVERVIEW OF HUNGARY……………………………………………….3

2. HUMAN RESOURCE STRATEGIES……………..….…………………..………..5




3. FOREIGN EXCHANGE ISSUES…..……………………………………..…………12

4. RELOCATION RISKS….…………….………………………………………………13

4.1 FOREIGN CURRENCY RISKS……………………………………………13

4.2 HUMAN RESOURCE RISKS………………………………………………14

4.3 OTHER RELOCATION RISKS………..…………………………………..15

5. RISK MANAGEMENT………………………………………………………………..16


7. Summery and recommendations………………………………………………………21

8. REFERENCES………………………………………………………………………….22



1.1 About postal telecom mobile

Postal Telecom mobile Company is a UK based medium size manufacturer of mobile phone accessories with twelve years experience in East London. They have a labor force of 150 people with 110 in physical manufacture. Twenty of this are in management positions and the remaining twenty being clerical and support staff.

The company lease in East London is due to expire soon and they have been convinced by their oldest Hungarian clients to relocate their business to Hungary. The company has had two successful exhibitions in Budapest and is now convinced of high business potential in Hungary.

1.2 Background of postal telecom mobile

The PTM has been in operation for the last twelve years United Kingdom. It is located in East London where both manufacturing plant and administrative units are found. Most of its customers are located in Europe.

1.3 overview of Hungary

Hungary is located in central Europe within an easy reach from Western Europe. The country covers and area of 93,000 square kilometers with two thirds of its territory being relatively flat.

The country has a population of 10 million people and a population density of about 100 persons per square kilometer. The capital Budapest is estimated to have a population of 2 million people. The national language is Hungarian with English and Germany being other frequently spoken languages.

The country’s infrastructure is currently undergoing reconstruction. Hungary has extensive road network with highways extending in all directions from the capital Budapest. Railway system and airports are well developed in Hungary.

Telecommunication sector is highly developed with both fixed lines networks and broadband internet well established. Mobile phone penetration rate currently stands at 90% with 3 UMTS licenses having been granted to date.

The company boasts of highly skilled and educated labor in engineering and IT, pharmacy, physics, economics and mathematics that are available and ready to offer labor force to the PTM Company. The country is currently experiencing huge inflow of foreign investments which has brought in technical know–how and technology.

The country is politically stable with well developed legal system that enables business to thrive. Hungary is also a member of major international bodies including United Nations. It became a full member of European Union (EU) in 2004, and has harmonized most its laws including those relating to labor and foreign investments to be in line with the EU regulations and requirements.

Economically, Hungary is currently experiencing a booming and fast growing economy having undergone a successfully period of privatization to move from planned to free market economy and currently, private sector constitutes 80% of total GDP. Inflation rate has since been stabilized at below 4% currently.

Foreigners, individuals or legal entities are at liberty to establish new companies or acquire shares in Hungary with limitations. Wholly or partly owned foreign firma can operate in form of legal business in Hungary without restrictions.

There are no legal restrictions placed on the payment of investment returns to foreign shareholders. Any company or its branch which is established in Hungary is recognized as legal entity. The procedure for acquiring trade licenses is similar for both foreign and resident firms. Therefore setting up and operating in Hungary has been made easy for foreign firms.


A thorough analysis and evaluation of human resource issues is necessary to enable the management to make an infirmed decision before setting up any business firm. This comprises the analysis of labor laws of the country the business is to be located. In analyzing PTM Company, we shall evaluate the current human resource issues and compare with those of Hungary where the company is set to move to.

The pertinent issues to be addressed include laws and guidelines that relate to the recruitment company senior managers and operatives in both countries, staffing issues and differences in employment rights in British and Hungary.

2.1 Analyzing the current human resource strategies in PTM

The advent of globalization, growth of multi-nationals, increased competition and high mobility of labor, capita and technology has led to the emergency of HRM practices across the globe. The companies operates and strictly follows British labor laws most of which have been harmonized with those of European Union (EU).

The company does not discriminate against any employee at the work place and emphasizes equal treatment for all employees regardless of age, race, religion, belief, ethnicity, disability and sexual orientation in accordance with UK labor laws and legislations as contained in UKs employment equality regulation act of 2003, race relations act of 2003 and disability discrimination act. The company prohibits all forms of direct and indirect discrimination on any basis and emphasizes favorable and equal treatment for all workers, (employment/discrimination, n. p).

The company currently employs both men and women who are treated equally and applies equal pay policy to both sexes, male and female doing the same work. Same criteria is used to evaluate payments of workers regardless of gender in accordance with the British and EU directive of equal pay, (Industry, 2006).

In enforcing equal treatment directive of EU, the company offers both men and women employees equal recruitment and training opportunities in addition to equal working conditions. For instance, in line with UK laws for women and equality (n. p), PTM Company cannot dismiss women on condition of pregnancy and maternity.

Legislation relating to working hours by the employees in Uk have been implemented by the PTM company to the later. Company working hours are within those recommended by the British and EU labor laws and company workers have adequate leave days for resting and are adequately protected against disruptive working patterns, (, n. p).

In addition, the company is offering trainings and career development to its fixed-term employees in an effort to enhance their skills of work. Staffs of the company have enjoyed occupational mobility and are represented by workers bodies. This is in line with the British fixed-term employees regulations of 2002, (legislation/fixed-term-employees, n. p).

The company employs a sizable number of part time workers in the physical manufacturing who are assimilated into full time on request. They are treated in equal manner just like full time employees of the company.

Transfer from full to part time work is possible in PTM. Information relating to both part time and full time jobs is made available to employees in time. Workers representative have access to information regarding part time and full time employment for their scrutiny.

The Employment Rights Act 1996 requires that all workers must sign employment contracts containing terms and conditions of work before taking up the employment, (, n. p). All PTM workers, full time and part time employees have signed employment contract which states their terms and conditions of work, which meet the threshold of this act.

Maternity rights have been emphasized in the company. The company offers ordinary maternity of 26 weeks to women employees. They have rights to access ante-natal care and dismissal on ground of maternity is prohibited in the company.

Pregnant workers are not allowed to undertake duties that may put them at risk. For instance, working night shifts during pregnancy is not allowed in order to conform to the maternity and parental leave regulations act of 2002.

The company offers social security schemes for its workers without discrimination in accordance with the country’s statutory social security directive. This social scheme covers workers in cases of sicknesses, invalidity, old age, occupational accidents and unemployment. In PTM, there is no discrimination between men and women in respect to the benefits or access to pension schemes run by the company and there is equal treatment in access to occupational pension schemes.

The company protects fundamental rights of freedoms of its employees in accordance with UK laws, (, n. p) and does not reveal workers personal data to any third party. Employees’ personal data can only be collected within the legal framework and procedures of the land for legitimate purposes.

Processing of employees data relating to race and ethnic origin, political opinions, religious and philosophical beliefs and trade union alignment is prohibited in the company. The workers have every right to access to their personal data and have demand for the correction of their data, and can object to the processing of their data in line with data protection act of UK, 1998, (bsi n. p).

The PTM employees have the right to company information and are adequately informed of their employment situation. Crucial company decisions that may lead to changes in the work organization are made known to the employees.

The information affecting employees’ work is communicated to the workers representatives in appropriate manner to help them prepare for consultation with employers. Consultation between workers representatives and employer are common in the company.

The UK laws offer greater protection to employees in the event of collective redundancy of 20 or more workers. In such case, there must be adequate consultations between the employer and employee representatives. There are laid procedures for collective redundancy.




2.2 Human resource issues in Hungary

Hungary, being a member of European Union (EU), has implemented most of EU laws into its country laws. The fundamental element of employment contracts are regulated by Hungarian labor code established by Act XXII of 1992, (Hargittay, 2010). The Hungarian labor is largely similar to labor laws found in other members of European Union.

The labor code has established the minimum wage and minimum base of social security contribution by workers in Hungary. Both resident and non resident workers are subject to income tax on their income from Hungarian sources, (PKF, 2006).

Under Hungarian labor code, indefinite termination of employment contract can be done by mutual consent between the employer and employee or through normal summery dismissal. Although termination on mutual agreement can take place at any time, the two parties must agree on date of termination and payments and remuneration to be made.

Ordinary dismissal in Hungary can result from disability on the part of employee, indiscipline and bad behavior in relation to employment relationship. Redundancy falls under a special category of ordinary dismissal in Hungary.

Summery dismissal may occur if the employee breaches employment contract and if the worker engages in conduct that renders the existence of employment relationship impossible, for instance engaging in business competing with the employer’s business, (Szabolcs, et al, 2010).

The labor code lays down procedural rules to be followed incase of collective redundancy. The code also states that an employee is entitled to severance payment if his employment is terminated by ordinary and summery dismissal, and in case of dissolution of the company without legal succession.

Fixed term employment contract can only be terminated by mutual consent between the employee and employer or by summery dismissal or if trial period applies, with immediate effect. However, if terminated under different conditions then, employee shall be paid one year’s average salary, (Hargittay, 2010).

Labor code of Hungary stipulates conditions under which ordinary dismissal does not apply, as when an employee is incapacitated due to illness not exceeding one year after expiry sick leave and the whole period if the illness was occasioned by occupational disease or accident at the work place.

Employee cannot be dismissed during the period of sick leave taken to nurse or care for a sick child, during leave absence without pay to nurse or care for a close relative, during treatment for production related illness such as pregnancy, leave absence to care or nurse for her children and also during rehabilitation period. Furthermore, ordinary dismissal cannot apply to employee who is remaining with five years to attain the age limit for old age pension.

Dismissal due to redundancy should be issued in written form and the employee must be paid work wages and other emoluments, and given certificate of service detailing his job profile and job evaluation. Evaluation however can be provided only on the request by the employee.

Any wrongful and unfair dismissal shall attract litigation. Lawsuit has to be instituted within thirty days from the day of dismissal notice, and if the court determines that the employer unlawfully terminated an employment relationship, such employee, upon request, shall be reinstated back to his former position.

Incase of any request by either party to exonerate reinstatement, then the court upon weighing all relevant conditions, shall rule for the amount to be paid to the employee and employment relationship shall cease on the day of the ruling. In the unlawful dismissal, employee shall be reimbursed for lost wages and emoluments and compensated for the damages incurred due to his dismissal.

Foreign persons with valid visas to stay in Hungary can be employed in Hungary upon getting work permits. However, foreigners from EU member countries are not subject to this condition for they don’t require stay visa and work permit for them to stay and work in Hungary. Company chief executive officers are also not required to posses work permits.

In my view the workers are sufficiently protected by the Labor Code in Hungary including termination of the employment relationship. Laws laws are harmonized to the EU labor principles. If you are an employer and you want to dismiss an employee, you have to make sure that your letter of dismissal meets the formal requirements set out in the labor laws.




2.3 Comparing human resource strategies in UK and Hungary

Both countries are permanent, members of EU and most of their labor and occupational laws are similar because they have been harmonized in line with the EU regulations.

Discrimination in work place is prohibited in the two countries. All workers are treated on equal measure regardless of their gender, race, age, belief, ethnicity, disability and sexual orientation in accordance with EU regulations.

Labor laws in both nations adequately protect their employees against exploitation by their employers. The laws are strict on matters of employment termination. Workers in have every right to be represented by eligible workers union.

In Hungary, minimum wage and minimum social security base has been set in the labor laws unlike in UK labor laws where it is not stipulated. Any wrongful termination attracts heavy penalty in the two nations.


Business transaction currency is Hungarian Franc and Euro. However, majority of Hungarians prefer using the Hungarian Franc and this difference in transaction currencies between the two countries is likely to create exchange rate problems for the company, particularly between the mother company in East London and subsidiary in Budapest Hungary.

The company operates in international trade by importing raw materials and exporting its finished products making it prone to exchange rate fluctuation risks, (Madura, 2000).


The relocation of manufacturing plant to Hungary will face numerous risks and more particularly the exchange rate risks as well as political risks (Hall, 2010). These risks shall have harmful effect to the company operations given that they collaboratively synergize each other, adversely influencing the company’s operations. This therefore calls for the need to put up measures to mitigate these risks which are very dynamic and subject to changes from time to time.

Other possible relocation risks range from transportation of equipment, human resource issues and social, cultural, economic, legal and political challenges. In addition to these risks, underinvestment, financial risks and problems in accessing raw material are likely to occur.

4.1 foreign exchange risks

The exchange rate risk has been and will be one of the most risks for the PTM Company. The current global economic downtown being experienced is making exchange rates very prone to fluctuations (Brock and Magee, 1978). This state of affairs is currently affecting many companies.

The company is however currently not very exposed to exchange rate risk since most of its operations are conducted within the European countries using the Euro currency, which has not experienced severe foreign exchange problems resulting from terrific changes in the exchanges rates (Dixit, 1983).

Foreign exchange risk is inevitable as the company relocates its manufacturing plant to Hungary. Raw materials and labor force may be transacted in local currency. Besides, the nature of company business and its international operations also exposes it to the risk of exchange rate.

Company imports raw materials and exports its products to the global markets outside Euro zone hence the need for the strategy to mitigate the exchange rate risks, (Yarbrough and Yarbrough, 1997).

4.2 Human resource risks.

There are different staffing policies that can be adopted by the company.

Perlmutter (1969) identified 3 different international orientations as

Ethnocentric (staffing mostly from parent country), polycentric ( staffing from nationals), and geocentric ( appointing the best person) that determines MNC staffing policies.The table below classifies international staffing as used in most multi national companies.

Parent country
national (PCN)

Nationality of an employee is the same as that of the headquarters of the MNC firm e.g. a UK national employee
working at the Hungary

manufacturing plant

Host country
national (HCN)

Nationality of employee is the same
as that of the local subsidiary

e.g. a Hungarian employee
working at the Hungarian


Third country
national (TCN)

Nationality of employee is neither that of the headquarters nor the local subsidiary e.g. a Chinese employee
working at the Hungarian

subsidiary of PTM company

Table 1. Classification of international staffing

The company will have to employ new staff majority being Hungarians, (Hargittay, 2010) and this will mean incurring recruitment and training costs. The newly recruited staff in a new country will be employed under different labor laws which the company will have to comply with.

Hiring of new management staff will be a great risk to the company since this are required to be people of high integrity. The company will also have to source new universities which can provide internship programs; this may not be an easy task.

Expatriates and senior management who will be relocating to Hungary are likely to face social and cultural problems of moving away from their mother countries, (Callings, 2008).

Administration should be prepared to accommodate different employee values and expectations stemming from cultural and social differences. Cultural values influence compensation and benefits, (Ladislav, 2011).

Company will loose the services of specialized teams of local workers who had developed intelligent system for the company. In his study, Stopford (1998) stated that maintaining and strengthening human assets attracts investors.

Employee compensation and benefits will be affected by many factors. This include different standards of living in Hungary may require a different compensation strategy. Exchange rates differences, differences in taxation and inflation rates and currency may demand for adjustment in human resource strategies.

4.3 Other relocation risks

Underinvestment is common relocation risks especially in small and medium size firms that are not well established financially, (Gay, et al, 1998).

Legal issues relating to labor laws and foreign investment will be another challengeful task for the company. The company will have to conform to the new requirements which may be different from those of United Kingdom.

There are differences in labor laws and regulation between UK and Hungary despite both being members of EU. These legal differences will impact on remuneration of employees.

Relocation will bring in the problem of accessing raw material and other inputs required in the production of mobile accessories. Enterprises that supply crucial inputs are difficult to replicate elsewhere causing the company to source for new suppliers or meet transportation costs which may be costly for the company.


Thorough research and analysis of the security and political status of the Hungary must be conducted to ascertain viability of relocating manufacturing plant, (Froot, et al, 1993). The initial findings indicate that the country is more secure and politically stable (Cassing et al, 1985) and offers favorable environment for the operation of PTM company.

A proper research on the foreign investments regulations need to be thoroughly conducted to ensure that PTM Company makes the correct and informed decisions before relocating (Deardorff, 1980)

The ability of the firm to hedge the risk of fluctuations in exchange rates is very important to any company in international operations, (Allayannis, 2001). The use of foreign currency derivatives (FCD) is important among the multinationals to caution them against forex risks, (Crabb, 2011).

Furthermore, the theory of purchasing power parity (PPP) can be employed by the company to forecast the possibility of exchange-rate risks. Relative purchasing power parity will be used to explain variations in relative prices between countries that may lead to changes in the exchange rates over time (Hall, 2010).

Minimal buying of raw materials using foreign currency denominations at the time when domestic currency is depreciating will help reduce foreign exchange risks as this will make imports expensive (Madura, 2000). The company should strive to increase its exports and minimize imports during such times to maximize on the situation.

However, diversification of the company’s products and services, and expanding its operations to different countries shall make it easy for the company to manage exchange rate risks (Yarbrough and Yarbrough, 1997). This is because a decrease in demand for one product or services will be compensated with an increase in the demand for the other products.

Possible underinvestment is managed by external financial sourcing to mitigate any deficits in finance, (Gay, et al, 1998). With high business potential in Hungary, PTM must source enough funds to exploit this opportunity.

Problems of accessing raw material and other inputs may be reduced by using local raw materials available in Hungary. However, those raw materials to be imported should be transported directly to Hungary rather passing through UK and then redirected to Hungary.

High production costs resulting from high labor costs incurred through recruitment, training and wages (minimum wage requirements), inputs and operation costs need to be managed appropriately for the company to remain competitive in the global market, (Ladislav, 2011).

Cultural and social issues that affect employee performances and compensation must be adequately addressed by the human resource team of the company before relocating to the new country.

Recruitment of senior and technical managers for factory in Hungary should focus on skills of the person rather nationality. Verification of employment history is necessary to help avert frauds and reputation of the company.Evaluation of employee quality of experience is essential for the performance of the company in the new location.

Establishing internship programs with local universities can be a great way to evaluate potential entry-level candidates early on. Many juniors, seniors, and graduate students in universities have light course loads. Though their status as students prohibits them from taking formal positions, they can work full-time or nearly full-time as interns.

Assessing of brand recognition is necessary in attracting employees to the company. Recent college graduates and younger employees would prefer to work on companies which have an established brand name. Company should also promise new fields such as high tech, Internet start-ups, and private equity to attract many workers especially young employees. Companies without such brand recognition will have to focus more heavily on the other recruitment tools which may be costly.

Factors affecting employee Compensation and Benefits that need to addressed includes differences in standards and costs of living, multiple currencies and exchange rates, inflation/deflation rates, tax systems and tax rates. All this will affect employee compensation and benefits and management must address them adequately.


The exchange rate risks can be easily overcome by continued diversification of the company operations. This helps the company in spreading its coverage in terms of the products and services as well as the countries of operations (Yarbrough and Yarbrough, 1997). This is very crucial strategy to hedge out the risks.

To lower exchange rate risks, the company may also ask their customers to purchase products using Euro currency since majority of customers are in Europe. Business transaction in Hungary should also be transacted in Euro currency.

The use of purchasing power parity theory to forecast future exchange rate risks should be used to prepare the company for possible exchange rate fluctuations. The firm will be able to adjust accordingly and reduce its exposure to these risks

Proper financial analysis is likely to predict the future trend of the currency performance and this helps the company management to make informed financial decisions for the company.

The risks of underinvestment may be resolved by adequate financing of subsidiary in Budapest. Management should carry out an evaluation of the financial requirements for setting up this manufacturing plant and provide adequate funding.

The company should engage in research and innovation to reduce the cost of production. The use of low cost but effective facilities in the new location will minimize financial risks and lower cost of installation.

Hedging operations through the company bank is recommended to reduce the risk of fluctuating exchange rates, (Allayannis, 2001). The company will not be affected in that the current rate of exchange will be used in future transactions.

To lower production costs in the new location, I recommend for the mass production to achieve the benefits of economies of scale. This however must be coupled by aggressive marketing of the products into global markets.

Proper management of human resource is necessary for the success of company in new location. Company should look for sets of skills rather than whether the ideal employee would be a local citizen or a foreigner.

In order to effectively manage relocation and other risks of the company, the company must strictly adhere to the suggested recommendations in order to overcome the challenges posed by these risks. A proper research on the Hungary and its political and legal regulations is very necessary and essential in addressing the risks associated.

Summery and conclusions

The purpose of this research is to evaluate and analyses issues that relate to the relocation of Postal telecom mobile company from east London to Hungary. The company has just realized high business potential in Hungary and would like to relocate after the expiry of lease in east London.

However, several factors have to be considered to enable company managers make an informed decision prior to its relocation to Hungary. Several factors have identified as key factors influencing the relocation of PTM.

To start with, a thorough evaluation and analysis of Hungary labor laws, legal and political situation has been analyzed and found to be favorable for the operation of the company business. There are differences in social and cultural values between the two nations which will affect the operation of PTM business in Hungary.

Although the two nations are members of the European Union and most of their labor laws have been harmonized in line with EU regulations, there still exist differences in some laws relating to labor management and regulation of foreign investments which the management of the PTM Company have to accommodate.

Relocation risks of exchange rates and human resource management has been identified and the management should address the issues sufficiently and adhere to the recommendations.


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Sebastian Reiche and Anne-Wil Harzing, (2009): international assignments; Version December 2009. Human Resource Management, London: Sage Publications
Stopford, John. (1998): Multinational corporations; Foreign Policy, winter 1998 i113 p12 (1). Copyright 1998 Carnegie Endowment for International Peace, London Business School.
Szabolcs Hargittay and Zsolt FüsthyHot. (2010): Issues in Hungarian Labor Law; International Society of Primerus Law Firms, Grand Rapids, Michigan. © October 2010
Gay, Gerald D. and Jouhan Nam (1998), “The Underinvestment Problem and Derivatives Usage by Corporations,” Financial Management, 27.
Yarbrough, B.V. and Yarbrough, R.M. (1997) The World Economy: Trade and Finance. New York: Dryden Press.
Ladislav Mura. (2011): performance of human resource management in an internationally operating company. J. Selye University in Komarno, Faculty of Economics, Bratislavska 3322, 945 01 Komarno, Slovakia

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State on how to Manage Separation and Termination

State on how to Manage Separation and Termination Assignment……………..







REDUNDANCY PLAN……………………………………………………………………..…..6

TASK 2…………………………………………………………………………………………….…8


ANALYSIS OF DATA……………………………………………………………………………9




Many companies being established today are growing quickly due to the advancement of technology and good management practices. They hire more staff to meet all their operations requirements but a time comes when due to external factors like low sales volumes and high competition they are required to downsize their workforce to meet optimal operational standards. The company will need a comprehensive policy on how to carry out the exercise without compromising the welfare of the employees or violating any existing legislation .This is because such an issue can make the affected staff seek legal redress and this can damage the reputation and business name of the company.

Qwikmail Company will need a concrete document that will act as a guide to its fifty employees and the management will continuously refer to it in making decisions that pertain to separation or termination.


This is usually of two kinds;

Voluntary termination

This is where the decision to stop working for the company is made by the employee. The first way is through resignation where an employee is required to give notice to the employer about his/her intention. Salaried employees should give a written notice of four weeks while the ones paid on hourly basis should give a written notice of two weeks (Fitz, 1995). However a member of staff who quits work on medical grounds is not supposed to give notice since this is non-intentional. The medical reports should also be copied to the Manager of the company. Such an employee will be entitled to full benefits. Giving notice is important because the employee will have left work on good standing and such employees are normally available for re-hire.

The other way of voluntary termination isthrough job abandonment where an employee quits work at the company without giving notice (Dave, 2001). An employee who stops working this way puts the company at risk of losing his output and he should pay the company an amount of money equivalent to his wages for either two weeks or four weeks based on the notice he was supposed to give.

Involuntary Termination

This is where the company resolves to terminate the employment contract of a worker or workers. This is usually due to misconduct, layoffs, position elimination, redundancies, discharge for underperformance and non-renewal of contracts. An employee is guilty of misconduct if he commits or is accused of any of the following offences;

Insubordination. This is where an employee refuses to perform a given task assigned to him by his /her supervisor without any reason.
An employee who gave false documents when being recruited by the company and later it is known that he was recruited on the basis of fake documents.
Negligence. This is where an employee makes the company incur losses due to poor performance of tasks, not seeking directions, not paying attention to detail or being arrogant.
Use of drugs when at work or working under the influence of drugs. This can endanger the life of the user and the colleagues in the workplace. The company is allowed to perform health and fitness tests through their medical professionals.
Working under the influence of alcohol and reporting to work when drunk. This will lower the output of the worker and the company may not reach its targets. It also endangers the colleagues in the workplace.
Breaking the country laws which lead to incarceration in a court of law leading to missing five working days consecutively.
Fighting, threat of physical violence or physical violence within the company premises whether during or after working hours.
Being involved in any acts that may defame or malign the company’simage to the general public.
Deserting work without permission from your supervisor.
Any other act which the management will construe to be an act of misconduct.
Lay off of any employee will require the management to give a four weeks written notice and also grant the employee a terminal leave upon whose expiry the layoff will be effected.Layoffs are normally caused by lack of work that the employee can competitively do or lack of enough capacity and resources in the company to continue engaging the person(Reddington,2003). The company should always liaise with the labor office to ensure full compliance with the prevailing laws that change from time to time.

Position Elimination may be due to the company losing funds from regular donors that force it to carry out organizational structural changes that eliminates the position. The company will give the employee a written notice of four weeks.

The employees who are leaving the company will be required to fill an employee separation sheet (Bratton, 2006) which will contain the following details; last day worked, reason for separation and any terminal leave days to be paid. The supervisor will be required to sign plus other managers of the company. The discharged employee can use these documents when he is seeking employment elsewhere.


After the preparation of these policies and procedures they will be tabled in a management meeting for further scrutiny and approval. The managers will give their input on areas they feel have not been adequately covered. It will then be upon the management to adopt the regulations and mandate the Human Resources Department to give employees copies of the document so that they can study it and not be victims. The department will also give a copy of these regulations to the respective labor union that covers the employees of this company. A copy of the regulations will also be given to the respective government department that deals with employee relations.


Since the company has resolved to lay off twenty of its employees, it must come up with an elaborate plan on how to carry out the exercise;

The management must first identify the pool or department targeted for redundancy (Frost, 2010). This is the area which has mainly been involved in mail delivery which following loss of business majority of them has been left with no duties to perform.The human resource department will initiate a consultative process where the workers who were mainly involved in mail delivery will be informed that they are at risk of being laid off. The workers will then be continuously updatedthrough meetings on the developments and in these meetings they can be accompanied by their union representatives. The minutes of these meetings should be kept very well as they will form the basis of defense should any aggrieved employee sue the company.

The company should discuss the proposals in detail with the employees and let them know of the redeployment plans in place and the options available to each employee. The company should not talk of any or keep a list of the employees to be laid off. The employees should be informed that it is the job or the role the employee was engaged to do that has become redundant. The company will then go ahead to identify the specific staff to be laid off. They can use the staff appraisal methods that are based on the particular performance of individual employees. Those who have been performing poorly are the ones identified for layoff. After identifying the individuals, they should be given a four week written notice as per the rules of the company.

The company can then start processing their benefits and can also assist them get placements in other companies where their services may be needed.




The decision by the management to terminate Rachel’s employment must be done in full compliance with the law;

The management should give Rachel a written notice of termination of her services as per the employment contract.
They should then notify the overall Manager of the company of their intention and the reasons behind it.
The management should ensure the termination will not be harsh, unjust or unreasonable and complies with the labor laws that govern settlement of disputes and grievances.
They should also make sure they have exhausted avenues on employee counseling and warnings of disciplinary action. This is as agreed in existing collective bargaining agreements between labor unions and employer.
The company can avoid such occurrences by giving very clear and easy to understand job descriptions(Becker,2006). An employee when being engaged by the company should be given a clear orientation on the specific details of the requirements. The job description will list all the responsibilities of the employee in order of priority. It will also detail the reporting structure and will clearly inform the employee where to seek directions and guidance in case of any problem. This will eliminate cases like the one of Rachel who collides with the boss severally.



The interview helps the management hear the grievances of those leaving the company. This makes sure that the disgruntled employees have a chance to be heard and those who may have had vengeful intentions usually make peace with the managers. The interviews also provide an opportunity for the managers to be criticized in their implementation of the company’spolicies. This helps the managers to understand more the work of managing people(Caroline,2007) and this also provides quality feedback which is of importance in the company’s forward planning. They also offer a chance to the management to retain a valuable employee who they could otherwise have lost. This is because instead of relying on a letter to dismiss an employee, this face to face meeting makes the management know the clear and specific reason a person is leaving the company.They also provide the management with important data on the training needs and areas in the organization. These interviews also embolden the company’s image to the public. Not many companies will entertain criticism but through this process an employee leaving feels he has been offered an opportunity to fully express himself and give his personal view of the process.


The organization should use the Strategic Human Resource Model (Grobler, 2000) to analyse the data and come up with clear objectives. This is because of the ineffectiveness of the adopted policies which can cripple the operations of the organization. The model has six stages:

Environmental Analysis

The organization should know the factors in the surrounding that influence the nature of its business. Why can’t they pay their employees competitive wages commensurate with other companies? Why are many employees not enjoying their job?

The answers will make them know whether it is their production procedures that are outdated(Morley,2005) and maybe they need to acquire new machinery and alter their procedures.

Organization Mission and Goal Analysis

They should redefine their mission and goals and evaluate whether they are in line with their operations. They are not retaining any capacity when majority of the employees serve for only two years and leave. An organization without experience cannot compete optimally in the market.

Analysis of Organization strengths and culture

The management will need to focus on areas where the organization is fully endowed and maximize on that. The organization will need to motivate their staff by offering better wages and also training to ensure quality.

Analysis of the organizations strategies

The company may be required to overhaul its current strategies on human resource management and production to stem the high rates of redundancy after a short period of service. This is due to the low morale in the workplace and a lot of exits. Their production procedures may also need review to stem many redundancies. Also the working conditions will need to be improved to ensure the safety of the workers in their workplaces.

Choice and Implementation of Human Resource Strategies

The methods used to choose these strategies will require deep review by the management. They should be in line with the company’sgoals and objectives (Hattfield, 1998). There should also be a clear follow up on the implementation by the various sections in the organization.

Review and Evaluation of Human Resource Strategies

There should be periodical review of the progress of implementation of the new strategies put in place by the organization. This will involve the various departmental heads reporting on the progresses achieved, obstacles noted and giving input on the way forward.


The importance of an organization having good human resource policies and procedures is very important. They determine to a great extent how the company will achieve its goals and objectives both in the short run and in the long run. This calls for companies to strengthen their human resource departments through adequate budgetary allocations, so that they can fully be in a position to formulate clear functions and descriptions of the various offices and levels in the organization. They will also set the targets and goals for each department and be able to measure whether they have been achieved or not. This will help companies remain competitive and not be faced with industrial strikes, staff go slows and acts of sabotage in the workplace. Failure to do this the company will be risking a great deal because the other management functions can collapse. The company will be operating without a department that can gauge their relevance in the industry and advice on the best way forward.


Becker,E (2006), Human Resources: The Business Partner, Wicks Publishers Ltd, P.51

Bratton, J (2006), Human Resource Management Theory and Practice, West Group Printers Ltd, P.22

Caroline, H (2007), Introduction to Human Resource Management, Cambridge Press, P.22

Dave, H (2001), The Human Resource Value Proposition, Ridim Press Ltd, P.74

Fitz, J (1995), Measuring Human Resource Management, Grog Educational Publishers, P.16

Frost, P (2010), Management and Organizational Behavior, Edin Publishing House, P.41

Grobler, P (2000), Managing Human Resource Policies, Freidburg Press Ltd, P.9

Hattfield,D (1998) ,People Management Practices , Abert Books, P.34

Morley, M (2005),Employment Termination Procedures, Shavew Printers, P.6

Reddington, M (2003), Transforming Human Resources, Redton Books, P.82



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The Blueprint for Personal & Professional Growth (BPPG

Blueprint for Personal and Professional Growth

As you continue to build your managerial breadth and skills, think about how Accounting and its
multiple dimensions integrate into your current and potential endeavors. Consider how lessons learned
and best practices will translate into important elements of your Blueprint for Personal and
Professional Growth.

Begin by downloading a copy of the MMBA 6550 BPPG template from the BPPG area on the left navigation
bar. Complete the document by responding to the questions within. As you create your BPPG, consider
the new ideas and skills that you can add to your professional toolkit and ways in which you can
continue to build your professional network. Review some of the strategies of leaders and managers at
successful global corporations that you have encountered in this course.

Part I: Ethics and Accountabillity

Part II: Self-Regulated Learning

Part III: Accounting and You

Please write inside the template provided and write within each expandable box in complete sentences
and paragraphs citing and referencing sources as needed. You should weave in course concepts,
materials, and outside readings in your responses whenever possible. Please provide comprehensive
responses that are lengthy and in-depth, similar to an essay response in an exam. The references for
all sections should be placed on a reference page at the end of the template and adhere to APA
guidelines. As with all assignments, you are encouraged to review the grading rubric for this
assignment prior to completing it.


“Davidson (cited in Stone 2011, p.36) argues that Strategic Human Resource Management (SHRM) demands HR professionals who are willing to accept responsibility for organisational performance outside HRM…

“Davidson (cited in Stone 2011, p.36) argues that Strategic Human Resource Management
(SHRM) demands HR professionals who are willing to accept responsibility for organisational
performance outside HRM should ‘. . .bring their specialist HR functions more closely into
alignment with corporate objectives and strategies’. Discuss.”

HRM in Context

HRM in Context1 Question 1: Critically evaluate the GE system of leadership development (GE’s Talent Machine: The Making of a CEO). What lessons can you and your organisation take from this approach?

Question 2: Critically Evaluate how the Leadership, Innovation and Growth (LIG) programme has helped GE manage change in its organisation, specifically with respect to leadership issues. What lessons can you and your organisation take from this approach?

Conclusion: Draw conclusions on the theory and its appropriateness to you and your organisation

Recommendations: Make recommendations on the theory and its appropriateness to you and your organisation.

– Please read through the attached work and edit it where possible and add in the following points where necessary.

**- Points to add in:
Question 1: – training and development – talent management – culture of the organisation

Question 2: – change management – SWOT analysis- centralised or decentralised system – culture – empowerment of leadership