Li&Fung

Summary Li & Fung, which is a long-standing Hong Kong based company, has evolved from an export trading company to a coordinator of value-added services across the whole supply chain in a global, open manufacturing circumstance. Its corporate culture has enabled it to keep pace with the current trend of global business. The successful acquisitions and the venture capital make the company grows stably and rapidly. However, the company now faces some challenges coming from Asian financial environment and related policies.High sensitive of the change in macro environment is essential for the company to success. At the same time, keeping Asia in an important position could take long time competitive advantages. Finally, the update of information and technology may bring more efficiency and effective within the organization. Introduction Li & Fung was the first export company that solely funded by Chinese capital in Chinese trade history. Fung Yiu-hing and Li To-ming founded it in 1906 in Guangzhou, China. The firm grew to be a limited company in Hong Kong on December 28, 1937.The company expanded quickly to globalize by the leading of the second generation from the Fung family. The high-speed growth of Li & Fung Limited started when the third generation of Fung’s family took over the organization. The core parts of the company’s business are foreign trade, logistic, distribution and retail. Victor and William tried to restructure the company, use the modem human resource management, and utilized professional management skills to control the company without eliminating the Chinese style management.Li & Fung Limited made use of acquisition to take over the competitors and expanded their suppliers and clients all over the world. The most famous and successful one is the acquisition of Inchcape Buying Services (IBS), which helped Li & Fung Limited to open the European market. At the same time, the brothers establish a venture capital corporation to accomp any the suppliers and stable its supply chain. According to one anonymous (1999), Li & Fung is the world’s largest trade sourcing company and it pioneers a new model for multinationals.By now, William and Victor want to expand the company from Asia based company into a region closer to their target market. With the new trend of the global economy, Li & Fung Limited will encounter more challenges and find a way out of a difficulty. Since its foundation, the company has establishes a culture that incorporates pragmatism and innovation. According to Msmith (2008), the progressive corporate culture, which blends traditional pragmatic reasoning with entrepreneurial innovation, has enabled adaptability and growth in a dynamic market.Additionally, it combines the Chinese business culture (â€Å"Chineseness†) with the foreign operations. Not only is it expects loyalty and reward diligent, but it also has a reasonable and transparent bonus system, where bonuses were based solel y on profit performance. Generally, the company is employee-concerned, where the workers and managers are treated as family. As is the vision of the corporation, they strive to use resources efficiently; to add business value for our customers and their suppliers; to focus on the health and wellbeing of our colleagues; and to positively impact our communities and societies (2013).Analysis of Li & Fung Li & Fung’s outsourcing matrix suits particularly well to its global position and activity: To begin with, outsourcing teams are firstly divided into two main product categories: soft and hard goods. Since they â€Å"specialized† in a certain kind of good, they develop a certain expertise, which is an asset in their discussions with external agents. Besides, inside each category, the teams are divided depending on their geographical market. This organization displays an advantage in satisfying specific local needs.Furthermore, connection and communication is established a nd fostered between the divisions, which know exactly whom to contact for each particular issue. Finally, Li & Fung is able to efficiently master the â€Å"4Cs† (connections, communications, control of quality, and consolidation of shipments), and obtain a competitive advantage because of their organizational chart. In terms of Li & Fung’s business model, it is â€Å"a virtual factory† or â€Å"private label manufacturing program†. This means that it specializes in providing product itself, not brand or promotion.Although there is big scale merit in production of textile industry, it is difficult that each company has a big factory as there are lots of competitors and fashion of the clothes are always changing, as is thought by Swan (2008). As to company which has a talent of designing or marketing, it is better not to have its manufacturing and outsourcing. Maybe this is why Li & Fung is always required from many customers. Also, Li & Fung has developed the relationship through its network so that it can get such soft goods as textiles at high speed and excellent quality with the lowest cost.Successful acquisition Li & Fung’s mergers have been the main way of expending their business. Among all the mergers, the biggest merger during 1994 to 1997, which is acquiring IBS, is the most successful and famous one even in the global range. The main reason why Li & Fung can get so many benefits from merger is based on the following reasons. The first reason is that, Li & Fung knows which company to merge. When Li & Fung choose companies, they will look for what the company is having at that time, the sourcing, the customers and the employees.In this way, Li & Fung can complement the blank its current business. For example, although the margin of IBS was only 0. 8% and the combined average was 2. 2%, the sourcing supplement brought by IBS has make up the blank of Li & Fung’s South Asia, Europe, the Mediterranean and Latin Amer ica. The second reason is that Li & Fung knows how to merge. At that time Li & Fung is the largest world’s supplier of retailers and IBS was the second largest. So the merge was very difficult and was treat as an elephant eat elephant merger.Especially for the huge difference between the two companies, Li & Fung was a U. S. – style Chinese-family business, While IBS was a British company. There would be a lot of unaccustomed and conflicts as expected. So Li & Fung created a transition team to review organizational processes and implement a unit-by-unit transition. Instead of doing the transition after the merger, Li & Fung did it ahead of the merger, in order of saving accustoming time. When the scale of the company increases, the operational mode of the company has to keep changing as well.After the merger, Li & Fung’s scale is twice as big. Li & Fung changed its mode into a more efficient and suitable one. It assigned managers to customer groups and not countr ies. This has made the management to be more professional and make the production more efficient. The merger has made the sourcing matrix of Li & Fung more mature. The margin of Li & Fung was higher than those of other companies due to their regionally coordinated sourcing services. Small Venture Capital Arm In 1986, Li & Fung established a small venture capital group in order to improve and perfect the whole supply chain.LFI invested in companies, which could assist the Li & Fung’s sourcing services. Magretta (1998) indicates that Victor said â€Å"A big piece of our corporate development is plugging those holes-the phrase we use is â€Å"filling in the mosaic† – and we use venture capital to do it. † LFI pay the same attention on the companies’ management system as the product when they were choosing the company to invest. Biers (2000) said, â€Å"Its venture activity has remained modest by industry standards, with just two or three new investme nts a year, each typically of just a few million dollars or less. The CEO of LFI mentioned that they only invested in companies that had at least $3 million profit, lack of resource and kept the control of the company. At the same time, they were looking for the young and creative companies that owned by people with design and marketing talent. The most successful capital injection is the investment to a promotional company; Cyrk Inc. LFI spent $200,000 in order to take 30% shares in Cyrk Inc. during 1990. At the very start, Cyrk Inc. provided service of T-shirt print.Three year after the capital injection, the sales volume raised 20 times more than before through capitalized on its logo and promotional design capabilities. In this case, they made contract with Philip Morris to produce a full line of promotional clothing. Five years later, LFI sold their shares of Cyrk Inc. for about $65 million. After spending a great deal of investment in America, LFI transferred their sight to th e European market. As a result of diverse culture and language, it was more difficult to invest in several companies to cover the whole European market.The complex situation required the managers in European have more experience and different strategies for different countries. During the process of helping these companies, they gain experience about the selection of the collaborate companies and create more opportunities to broaden their business fields. At the same time, Li & Fung can gain high reputations among the growing companies, because the goal of the LFI is not acquire these companies. In this case, these companies could unconstrained develop themselves. And Li & Fung could not only maintain the good relationship with both potential partners and current partners.Challenges & Recommendations For Li & Fung, although it is already the largest export company in the world, it is still facing a lot of challenges. According to the trend of international Economics, Asian Financial Crisis will be gone. By then, the labor cost of Li & Fung will not be as low as now. So margin will be lower in the coming future. But even if the Asian market has recovered, its labor cost is still lower than other countries; also the gap between the wealthy and poor is huge. Most of people are living under average level, which will bring a low cost of labor.Also Asian has a large population, which will involve a large number of rich people, whose price sensitivity is low and needs are high. They can purchase the products, which have been produced in Asian. So Li & Fung could give more attention to Asian Market, instead of giving it up. Policies of trade protection, which have been published by governments in different countries, will also be a huge challenge to Li & Fung. Under this circumstance, all that Li & Fung can do is to prevent before it or actively adjust after the coming of policies.Li & Fung should do market research and macroeconomics analysis regularly in order to ch oose the very best sourcing places. Also, it ought to try to find outstanding suppliers in different economic regions and different fields, so that the risk will be shared. Thereby, Li & Fung should closely monitor the changes of economics and adjust it in time. With the development of technology, information system is playing an important role in supply chain management. In this case, Li & Fung could establish a proprietary information network that enabled clients to view the status of an order.This will improve their customer relationship management. At the same time, they could set up a powerful database to do data mining, which could collect the data of suppliers and consumers, in order to calculate the shortest time and distance and lowest cost in operation. Also they can collect the data of customers, so that they can know better of market needs and offer better service. Overall, for Li & Fung, challenges and chances are coexisting. If it could continue to reflect, to improve, it would keep up with the trend of world economics and update information and technology timely.References 1. Biers, D. (2000). Thinking small. Far Eastern Economic Review, 163(46), 48-48. Retrieved from http://search. proquest. com/docview/208225120? accountid=9744 2. Li & fung pioneers a new model for multinationals. (1999). Strategic Direction, 15(6), 24-25. Retrieved from http://search. proquest. com/docview/218626878? accountid=9744 3. Li & Fung: Beyond â€Å"Filling in the Mosaic†, 1998-1998(HBS Case 9-398-092). 4. Magretta, J. (1998), Fast, global, and entrepreneurial: Supply chain management, hong kong style: An interview with victor fung.Harvard Business Review, 76(5), 102-114. Retrieved from http://search. proquest. com/docview/227758445? accountid=9744 5. Mismith068 (2008, 12). Li and Fung Case Analysis. StudyMode. com. Retrieved 12, 2008, from http://www. studymode. com/essays/Li-Fung-Case-Analysis-185365. html 6. Swan (2008, 9). Agri-Future; trendspotting & futu re thinking. Retrieved 9, 2008, from http://swan-futurethinking. blogspot. ca/2008_09_01_archive. html 7. Sustainability (2013, 3). Retrieved March 14, 2013 from http://www. lifung. com/eng/csr/csr1. php

Organisation and Control of Computer Operations Essay

The organisational structure of the company is quite straight forward and to the point and easy to understand. The company is split into two departments the computing department and Contracts team. Taira Zeb is the overall is the director of the company. Martin Gates is the Transport Manager of the daily operations team. He liaises with other companies to A2z Travel Uk Ltd can offer when they book with them. He explains to companies what special rates they can offer them if they book association or company booking outings. If the Company’s or associations are happy to sign any contract or booking with A2z Travel Uk Ltd he passes the contact details to the contract manager make them sign a contact or booking. The people working in Martin Gates team include: – * Wendy Gates (Contracts Manager) – the main role of Wendy Gates is to secure contracts and bookings also introduce discount under the authorisation of Martin Gates the Transport Manager. * Sandeep Uppal (Health & Safety Manager) – Bashir deals with health and safety issues within the company, and also liability issues whilst vehicles are in use by companies and groups. * Mohammed Zafreen (Head Mechanic) – deals with the vehicles checking them on a weekly basis checking for problems before they go to the outing it is booked for. Mohammed Zafreen is charge of checking if the all transport coaches are safe to drive on roads and all the paper work is up to date for example MOT, Car Tax before they are let out. Mohammed Zafreen also deals with daily maintenance for vehicles when he has the time to do so. * Asan Fazal (Assistant Mechanic) – deals with daily maintenance of the coaches on a daily basis. * Sandeep Uppal (Health & Safety Manager) – Sandeep Uppal deals with health and safety issues within the company, and also liability issues whilst its coaches are in use by A2z Travel Uk Ltd * Julia Wilson (Health & Safety Co-ordinator) -Julia Wilson works under Sandeep Uppal and deals with training in-house staff on health and safety issues under the guidance of Sandeep Uppal. The computing department is run by Asian Fazal who is the IT Manager. He deals with overall matters regarding hardware and software requirements for A2z Travel Uk Ltd, and is involved with all purchasing of hardware and software but before funds can be released to him the director must be with agreement with him. The people working in Asan Fazal team include: * Ahmed Hussain (Technician) -Tony deals with maintaining hardware/software with the company and resolve any network problems. * Andrew Dales (IT Security Manager) – deals with security producers and deals with viruses and have creped thought the network. * Praveen Patel (Backup Manager) – responsible for making sure all data has been backed up successfully the backup manger responsibilities ensure all backups are done daily and weekly basis and enforce backup procedures with in the company. The backup manager must ensure all backups kept in a safe place in a different location if for example all data was lost due to fire. * Wajid Gahni (Database Administrator) responsibilities include, database design, co-ordination and use of data integrity, up keep of data, and data maintenance to see if the data passed thought the database is not garbage. * Azard Amera (Security Assistant) she deals with daily security issues or given daily task to complete by the IT Security Manager * Frank Dean (Backup Assistant) responsible for backing up data on a daily basis every evening and reports back to the backup manager if he occurs any problems. He will contact the backup manager when a daily backup is co The Structuring 0f Computing Jobs Within The Organisation. IT Department Structure IT Manager – Asan Fazal Asian Fazal in A2Z Travel UK Ltd is of that to give support and guidance to the IT department on all computing issues within the organisation also chasing up things that the IT department need to do. Asian Fazal is responsible for work on internal projects and teams such as IT Security policies, hardware, software and backup policies. Asian Fazal has to enforce see policies otherwise there could be major Problems within the company. His job involves analyzing security requirements, evaluating safeguards, vulnerabilities, threats also opportunities. Asian Fazal job entails: – * Identify integration issues and develop solutions of computing systems within the company. * Coach and develop skills within a project team. * Lead project teams within the computing department. * Run the IT department to the highest standard. IT Security Manager – Andrew Dales Andrew Dales is responsible for all IT security integration issues within the computing network in the company, which include data Protection act, computer misuse act, IT security and privacy. Andrew Dales to deal with security breaches that has taken place also making high security risk into a low security risk. Andrew Dales ensures all passwords are used coherently and in accordance to the A2Z Travel UK Ltd IT Security and privacy policies. Andrew Dales deals with any seen or reported act of computer misconduct, and she ensures the company’s regulations of carrying out these procedures. Security Assistant – Azard Amera Azard Amera job involves assisting the Security Manager in security related issues. Azard Amera keeps on top of all the latest security, and virus software. Azard Amera has a list of jobs to do on a daily basis that he must complete. Azard Amera can take over the security manager role if he is sick or he can not attend for work Technician – Tony Seagull Tony Seagull who is the company technician manages, maintains and supports the company’s fundamental IT infrastructure. He is also responsible for the development of a completion of training programs for the users of the computer systems within A2Z Travel UK Ltd. Tony regularly comes to check the computers in working order on a weekly basis are as well as coming. He is also responsible for the hardware and software problems and any network issues that arrive. When the organisation decides to upgrade any of the hardware or software used the technician is responsible for carrying with the backup assistant if the work load is too much for him. The technician inputs ideas for what the company needs to the IT manager. Backup Manager – Praveen Patel Praveen Patel is responsible for backing up of all data used within the system. Back ups are carried out on a daily basis. (Every evening) These back ups are stored at the main site location. Weekly back ups are also taken from the system, these back ups are taken to a secure location off site. This is done so that if data is lost or corrupt at the main site, only a weeks worth of data is lost. Backup Assistant – Frank Dean Frank Dean is responsible for backing up data on a daily basis, and ensuring all security procedures are met. Database Administrator – Wajid Gahni As the database administrator Wajid Gahni has the responsibility and the role of: – – Co-ordinating the use of data in database management systems. – Providing support to the other departments. – Any changes made to the database must be approved by DBA. – Controlling access, performance, monitoring and tuning of the database. – Working with other computing team members to make sure the database is working to the highest performance. – This DBA gives different users different access rights to the system – The DBA resolves disputes that can occur with the Database. Privacy and Security Privacy â€Å"Privacy is the claim for individuals to be left alone, free from surveillance or interference from other individuals, organisations or the state†. (P59 lauden and lauden.) A2Z Travel.org has about 10 computers, which they use to keep personal data about all drivers, coaches, routes and customers. Therefore all access to customers and staff information within the company is restricted to those authorised to see it. There are formal procedures that are followed for the allocation of access rights to users such as using a secure password, never telling anyone your password, changing passwords regularly and making sure that no staff members write their passwords down, such data should be memorised. At A2Z Travel.org a single password is used so that users can log on to the system, this is secure as only members of staff have authority can log on to the system. An improved way of using passwords would be to assign each user with their own unique user name and password so that all unauthorised access is prevented. These passwords should be confidential and users removed from the system they leave the company. The company plan to implement a more secure password system in the near future to improve security. The use of data encryption would also be of great benefit to A2Z Travel.org, as this would prevent any data being accessed from any other software applications, this would also be necessary when setting up individual unique passwords to access the system. Privacy Software The most interesting thing that we found out while we were at A2Z Travel International was that the two directors, have their own computers, which they work on. The computers have a lot of software installed on it but the most interesting software that we found installed on the computers was the Privacy Guardian 3.2 for Windows. When we asked the directors why they only have this installed on their computers they told us simply because they do not want anybody to know which internet sites they use and visit. Apparently this is something to do with the contracts they have with other companies. The directors admitted that occasionally they would view the contents on colleague’s hardware, including cache, cookies, index.dat and history. Privacy Guardian ensures that all traces of Internet and computer activities are permanently erased and unrecoverable from the PC. â€Å"Privacy Guardian is a safe and easy-to-use privacy protection tool that securely deletes online Internet tracks and program activity records that are stored in your browser and other hidden files on your computer†. SECURITY The Security of a system is a combination of its ability to support: * System Availability * Data Integrity * Data Confidentiality It is essential that all information must be protected against unauthorised access, theft and physical damage. Access to data should only be allowed to members of staff with authority, there might also be certain levels of security so that particular members of staff can only access certain data. Therefore all data in A2Z Travel.org is kept in a secure locked office, with limited access. Backups of data are also kept on secure location off site for security reasons. Data protection act – The main objectives of the act are to make sure that any personal data stored in any computer related to a member of staff is accurate, used for only the purpose registered, kept up to date, and only available to those who are entitled to use the data. Any member of staff may ask for a copy of the data held in their record. It is a legal requirement to meet with the data protection act in any organisation, staff are also made aware of this and are given a copy of the companies data protection policy when they are recruited. CCTV – A2Z Travel.org is a 24-hour coach service and therefore all gates are kept opened for drivers to enter and emerge, and so the need for CCTV is essential. CCTV is also used within the office; this can help to audit users activities on p.c’s. For instance if there was a problem experienced and it could not be confined to a particular member of staff the CCTV system could be used to view who was using the system at a particular time. There is CCTV placed in several places such as inside and outside the office and in the coach yard where the coached are parked. Equipment security – In order to minimise the loss or damage the equipment within the company is protected from security threats and environmental hazards. Regular backup copies of data are taken on a daily basis, which is done by Charles Stewart (Backup Assistant). Master software and backup data diskettes are kept in locked cabinets when not in use and they are also stored in a different location. It is vital for master copies to be kept elsewhere as data that is corrupted or destroyed in case of fire or theft, which will result in losing weeks/months of work, cannot always be replaced. Any computer is at risk from damage or theft. Theft is becoming more and more common amongst companies and organisations. To avoid losing thousands of pounds on buying more equipment to replace the ones that have been damaged or stolen, A2Z Travel international have insured all their equipment in the company. This insurance cover will compensate for the repair or replacement of the equipment and software. The use of security ties and lock help to protect the companies’ hardware, this is necessary as a number of drivers are continuously entering and emerging from the office. Security tags are also used on all of the hardware so that the equipment is identifiable in the event of theft or loss. All of the equipment is also registered with the manufacturer so that they are identifiable from the serial number. To further improve security the use of metal casings and security locks on devices such as printers to prevent any other member of staff apart from the technician from changing consumables etc, this helps maintain equipment as members of staff without I.T knowledge may damage the equipment when attempting to change consumables etc. Viruses – A large risk faced by A2Z Travel.org is the possibility of downloading or receiving harmful viruses. There are a number of ways in which it is possible to contract a virus including the use of floppy disks, downloading data from the Internet or email. To reduce these risks it is the role of the I.T security manager to have an up to date anti virus software subscription. Even more important is the task of regularly updating this software as new viruses are regularly generated. Another security step taken by the organisation is to implement firewalls on all of the P.Cs used within the company. This helps to protect data and filter out any harmful files. The role of the technician includes updating all of this software and carrying out regular checks on all of the computers. Another precaution taken by the company involves completing regular windows updates on all machines used within the company. This keeps all Microsoft software up to date so that there is less risk of contracting any viruses or experiencing any problems with any software. Technical Security – This considers the security requirements, which are related to the technology within A2Z Travel.org in particular IT networks, systems and equipment. Topics that are involved include: Hacking – This is an act to penetrate computer systems to gain knowledge about the system and how it works. A hacker is someone who is interested in computer programming and things that are related to the technical side of a computer. The damage a hacker can do is change a password so legitimate users are denied access, can smuggle another program onto the P.C, can steal credit numbers to obtain goods and services and can crash a system. A2Z Travel.org uses up to data virus protection and Microsoft firewall applications to prevent any unauthorised access to the system. Bibliography http://www.indianest.com/computing/security/020.htm http://www.itbusinessedge.com http://www.etechb.co.uk/education/Docs/Technician_Phase1-summary.pdf Carroll, John Millar, (1987), Computer Security 2nd Edition, http://www.iseek.org/sv/13000.jsp?id=100047 http://www.informationcommissioner.gov.uk/eventual.aspx?id=34 http://www.pctools.co.uk/privacy-guardian http://mtechit.com/concepts/security.html http://www.pctools.co.uk/privacy-guardian

Saving Water

The Solution is in the Tips of our Hands. â€Å"We think this water may one day be lost to us forever,† a phrase said by Mohanbhai G. Patel, a hopeless well owner from India mentioned on the essay Water Pressure, presented in the book Green. This essay portrays a great understanding of how humans can change the water scarcity problem in remote places, such as villages in India and Africa, by just spreading their knowledge and showing methods that will decrease the effect of this ceaseless issue.Some of us do not have the capacity and resources to help third world countries, but we do have the ability to change the community we live in; and it all starts at home. A simple, sustainable method we could practice is running the clothes washer and dish washer only when full. This concept may seem extremely appealing to members of a household but the actual idea of practicing the method might turned out to be unrealistic.In order to make this water saving practice effective, one pers on should begin the trend of implying the practice in their daily life, demonstrating to the people surrounding him/her it’s not difficult to become a guardian of this crucial element. The conception on how the problem should be faced are based on my beliefs and inexperienced perception of human action, for this reason I consulted my grandmother's judgment on this matter. Agueda grew up in the Cuban countryside where washing machines didn’t even exist less than a decade ago. If you need three pieces of clothes for the next day, just fill a little bucket with water, place the items inside, and let it sit there for thirty minutes; your clothes would be as wearable as if you wash it twenty times in the washer. †(Delgado) It was important taking into consideration the concerns of person my age and how water shortage worldwide was affecting his life. One of my classmates, named Carlos Garcia, who seems very passionate about this issue, was the perfect candidate to pro vide some information on this method. I asked him about the dishwasher and how he believed using this machine only when needed as going to make a change. He laughed at the fact that people actually use them as an instrument for washing dishes. â€Å"Just because a person got a patent on an invention do not means is useful at home,† Carlos quoted. From his point of view having a dishwasher at home is a waste of space, water, and electricity. His mother, who is the main user of the dishwasher, stores kitchen appliances and has never turn power button on. The author of the essay presented earlier, Fen Montaigne, shows a variety of approaches on how to solve the water deficiency problem and demonstrates how this water distress affects different regions of the world.The story starts as he travels throughout India with a popular dam constructor that has built, with his movement, an estimated of 4,500 dams in about 1000 villages. This break of events illustrates how a person can imp act thousands of people by just showing them how to work together to alleviate the great necessity of water sources that were nonexistent to this time. Now how do I relate his experiences to my sustainable practice at home? We start conserving water using a simple method will then expand our horizons little by little when we get our families involved, and later on our community.Judging on the opinion of an elderly person, a college student, or an educated writer should not be well structure evidence on how the problem should be confronted. You would make your own decision according to your beliefs, and understanding of the concept. By investing on researching any of the earlier stated methods and creating greater knowledge, anyone can help to promote water preservation, and anyone can help to halt this international crisis.

MBA FINANCE RESEARCH PROPOSAL . CREDIT RISK MANAGMENT OF COMMERCIAL

MBA FINANCE . CREDIT RISK MANAGMENT OF COMMERCIAL BANK A CASE STUDY OF ........WHICH bank case study we take that easy to collect the data - Research Proposal Example Financial institutions are facing many problems in the area of credit risk management. Credit risk is not only oriented towards the banks but it also occurs in all enterprises in the business world. Credit risk usually arises, when any of the trading partner fails to meet his full obligation on due date. This will seriously affect the trading practices of other partner who is associated with him. There must be proper balance maintained between the credit risk and other risks that influence the credit practices of the firm. The issue of credit risk is having a greater concern in banks because of the higher level risk associated. It also includes the changing business conditions and characteristics of the clients. The major causes for these problems are failure of banks in meeting the credit standards which are framed for the borrowers, failure in changing the policies with respect to the economic changes, under-graded portfolio risk management and the situations that lead to decline in credit standings of borrowers of the bank. Credit risk arises when the borrower fails to the terms and conditions mentioned in the credit agreement. â€Å"The goal of credit risk management is to maximise a banks risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters.† (Principles for the management of credit risk, 1999, para.2). The bank selected for the study is HSBC in UK. â€Å"The HSBC Group is one of the largest banking and financial services organisations in the world.† (Gokarn app as head of credit risk management of HSBC, 2006, para.6). It is headquartered in London and has its offices in more than 86 countries and has 8,500 offices all around the world. â€Å"HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.† (About HSBC: who is HSBC?, 2009, para.4). Research Hypothesis: Credit Risks

Consumer behaviour assignment list Coursework Example | Topics and Well Written Essays - 2500 words

Consumer behaviour assignment list - Coursework Example They are having their head quarter in the New York City. Aqua Gel Cleanser product will be having the features like it provides fresh and clean looks for the users. Exciting packaging and designing of the product will attract customers from various segments. Skin soothing policies of this cleanser are offered with cucumber, apple and aloe extracts. The cosmetic product is foam based product. Aqua Gel Cleanser is getting famous for the soap-free base and more skin friendly molecules. 1.2. Develop a tag line and a magazine ad (without the aid of a computer) by using creativity and not artistry. What can you build into your advertisements that will boost the chances that target audience members will take in the ad and send it along to short-term memory for processing? Are there elements in the ad that can be used to facilitate later retrieval of your message? Mainly, the cleansing gel products of Makeup Artistry Cosmetics will be facing closest competition from the Clinique and other Sephora products. Brand value of MAC increased due to extensive sensational makeup collection. MAC is adopting lucrative strategies to attract the customers towards cleansing products. Major aim of the advertising policies of MAC will adopt different features of the skin care gel. Nourishment factors of the MAC based cleansers and hydration quality aspects of cleaning skins are one of the major positive attributes of the new products. Features of more clearing and smooth facial skin provisions must be outlined in the advertising massage of MAC. In addition, MAC is offering more protection of the sensitive skins. Human skin will get more refresh policies with the use of such cleanser along with water. Advertisements of Aqua Gel Cleanser must have a proper tag line that will identify target audience and requirement of potential customers. Aqua Gel Cleanser will adopt the tag line of â€Å"hydra gel cleanser minimizing pores and smoothens skin

Data Protection and Privacy Issues with Social Networking Sites within Dissertation

Data Protection and Privacy Issues with Social Networking Sites within the context of EU Data Protection Legislation - Dissertation Example In view of this contentious issue, this article will present a basic overview of the data protection (DP) legislation as framed by the European Commission, with regard to Social Networking Sites (SNS). It will also discuss some specific DP issues within SNS focusing on the roles and responsibilities of the various actors i.e. the SNS providers, users and regulators. The article will study and review certain sources of concern about user privacy in relation to the functionality/operations of SNS; while taking into account the conflicting needs of SNSs to profit from the personal data of their users, and their legal obligation to protect the privacy of their users, viewed within the context of EU Data Protection Legislation. It will also recommend suitable potential changes to the current EU DPP legislation necessary to fit in with modern and continuously evolving communication methods within the virtual world. 7 1.3Significance of the study 7 2Literature review 9 2.1Emergence of the S NSs and the nature of the information stored in them 9 2.2The concept of information privacy and the subsequent threat to privacy within the Internet (primarily the SNSs) 17 2.3Data protection in the context of EU Data Protection Legislation 24 3Analysis 32 4Methodology 41 5Conclusion 43 6Recommendations 44 Bibliography 46 Applause Store Prod. Ltd. vs. Raphael, [2008] EWHC 1781 (QB). 46 Boyd, D., and Ellison, N. 2007. Social network sites: De?nition, history, and scholarship. Journal of Computer-Mediated Communication, 13(1):210–230. 47 Brown, I., Edwards, L., and Marsden, C. Staking 2.0: privacy protection in a leading social networking site, Retrieved from, 47 Burns, E., 2007. Marketing to Social Networking Sites, Targeted. ClikZ, retrieved from 48 Bygrave, L. 2001. Minding the machine: Article 15 of the EC Data Protection Directive and Automated Profiling. Computer Law & Security Report, No. 17, 17-24. 48 OfCom. August 2010. Consumers spend almost half of their waking hour s using media and communications. Retrieved from 53 Abstract Various observations have revealed that in the modern 21st century the various social networking sites (SNSs) on the Internet have become immensely popular, forming an important part in the life of many of the users. The SNSs form a platform where the users create various types of networks to forge social relationships. While forming relationships on such platforms, the users often share a good deal of personal information, ignoring or underestimating the potential risk from such information sharing. As for example, the uploaded personal information of a user may reach more people than actually intended. Often the anonymity and the lack of formal guidelines allow users to post information about other users without any prior permission. Often unawareness and a lack of experience, and furthermore the composition of the SNSs, work towards exacerbating the situation. Recently many of the well-known social networking sites have faced severe criticism for inadequate data protection and privacy accorded to its users. This paper aims to give an insight into the various privacy issues and risks related to the SNSs, in the context of EU Data Protection Legislation, while it also aims to study the matter in order to seek certain workable solutions as regards this problem. Data Protection and Privacy Issues with Social Networking

CG Case Study Example | Topics and Well Written Essays - 500 words

CG - Case Study Example counting; not permitting enough freedom to the board of directors and sharing responsibility; and common deficiency of shareholders’ interests in the corporate governance ( Abrami et al. 3). Historical old practices of governance are responsible for adhering to different corporate mechanism based on two-tiered approach in most of the Chinese state-owned enterprises (SOEs). It is the sole reason of differences existing in Chinese publicly traded companies with that of the US or UK companies. Actually, the Chinese corporate structure has been historically impacted by its economic mechanism. In China, most of the large businesses were under state control. Managers in the past had been answerable to both the government policy initiatives and the business aims. The government had been the major stakeholder, therefore, its claim to fulfil its objectives were relevant and reasonable. Powers were also implicit in a firm’s Communist Party Committee, for making decisions in specific fields of governance, such as strategic planning (Abrami et al. 2-3). Change in the Chinese approach to managing listed companies happened later in 1990 in its attempt to practice globally agreed parameters of managing corporations. Thus, these differences existed till 1990 when the Chinese government started two stock exchanges in Shanghai and Shenzhen. These attempts were made to transform the procedures of corporate governance. Those companies, desiring to become listed companies were supposed to fulfil basic governance and securities law (Abrami et al. 2). Procedures smoothened with the formulation of the Chinese Securities Regulatory Commission (CSRC), which observed the functioning of these two exchanges and released a list of solid regulations. The primary job of CSRC is to â€Å"supervise the behaviour of listed companies and their shareholders who are liable for relevant information disclosures in securities markets† (Abrami et al. 2). In the past, there was no practice of

Equal opportunities Essay Example | Topics and Well Written Essays - 1500 words

Equal opportunities - Essay Example bility on service providers to promote good gender equality policies and processes as opposed to leaving the responsibility to individuals to challenge discriminatory practice - practices that, wittingly or unwittingly, have continued 30 years after the introduction of the sex equality legalisation. Let us have a look at how different legislative bodies have enacted / enacting regulatory frameworks to improve the gender equality in work places: Greater London Authority Welsh Development Agency Scottish Executive City of Birmingham Council North West Region West Midlands Police Authority Greater London Authority (GLA) Gender equality in GLA has been clearly set out from the start, with important issues of the process already in motion. It is exceptional in that the organization doesn't suffer the history of disadvantage found in the many of public sector bodies, and can therefore work on gender equality can go ahead without the traditional constraints. The public duty on gender equality in GLA makes required arrangements with regard to the principle that there should be equality for all. Its strategy for equality for women attempts that the organisation reflects the entire local community at all strata. The mainstreaming of gender equality has been found to be considerably easier in a newly created public body with equalities as a dimension of officer responsibilities. The GLA advocates: * A common approach for performance indicators on equalities * Clear equalities targets to measure performance * Equalities indicators integrated into the best value process These recommendations have streamlined the policies and practices that have helped the GLA become an exemplary employer that reflects the equalities programme for the population of London. This is visible in all... Gender equality in GLA has been clearly set out from the start, with important issues of the process already in motion. It is exceptional in that the organization doesn't suffer the history of disadvantage found in the many of public sector bodies, and can therefore work on gender equality can go ahead without the traditional constraints. The public duty on gender equality in GLA makes required arrangements with regard to the principle that there should be equality for all. Its strategy for equality for women attempts that the organisation reflects the entire local community at all strata. The mainstreaming of gender equality has been found to be considerably easier in a newly created public body with equalities as a dimension of officer responsibilities. This is visible in all functional bodies that include the Metropolitan Police, London Transport, the Fire Service and the London Development Agency.

Financial Management Degree Case Study Example | Topics and Well Written Essays - 3250 words

Financial Management Degree - Case Study Example As the acquirer buys another company and pays cash to the target's shareholders, the bidding shareholders would be able to retain the same level of control in the company because their equity proportion is not diluted. To some shareholders, retaining the level of control over the whole entity after the target company has been acquired is one of the major considerations (McDougall & Chenhall). Another advantage of cash purchase to the bidding shareholders is that is is simple and straightforward. A cash offer would be more likely attractive to the target's shareholders especially when economic times are not so predictable, therefore the acquisition deal would prove to have higher success. A major disadvantage to the acquirer would be the huge sum of cash that it has to raise in order to fulfil the deal. While it is less likely for a company to raise such a huge amount of cash from its retained earnings, it is necessary for the company to raise it through other means, such as by incurring debt. The dilution of the capital structure of the company through higher debt, which affects its risk and credit rating, is a major disadvantage. If the company already has a high amount of debt, the acquirer's shareholders would find that the huge amount of debt to raise cash and pay for the acquisition would erode the company's credit rating, and would increase the risk of each share that they hold. From the point of view of the target's ... B. Shares exchange Another form of merger financing is shares exchange. Instead of paying cash, the acquiring company can issue more shares for the target's shareholders in exchange for the shares that they hold in the target company. From the point of view of the acquirer's shareholders, shares exchange is beneficial in such that the company would not have to be burdened to raise a huge amount of cash through other financing means such as debt, which could put pressure and increased risk on each of the shares they hold. The company's liquidity position would not be compromised in the process (McDougall & Chenhall). Shares exchange have been so attractive during the past decades because of its impact on the acquirer's price/earning ratio. If the target has a low p/e ratio, the acquirer can take advantage of it by issuing one share equivalent to more than one share of the target's. This can have a significant impact on the acquirer's own p/e ratio. However, one major disadvantage of shares exchange to the acquirer's shareholders is the dilution of equity due to the issue of more shares, which leads to the dilution of position and lower level of control over the company. With shares exchange, the target's shareholders will not incur capital gains tax because no immediate sale of shares has taken place. If the target's shareholders sell their new shares in the acquiring company, that is when they pay the capital gains tax. This is one of the advantages. Another advantage is that the target's shareholders will be able to maintain a position in the new combined entity. One disadvantage to the target's shareholders would be that, if the acquiring company fails to generate

The US-Mexico Border Flow of Illicit Drugs Essay

The US-Mexico Border Flow of Illicit Drugs - Essay Example The major aim of this cooperation has been to create disruption for illicit drugs market in order to make the situation more difficulty for the illegal traffickers to manufacture and traffic the drugs to the US. The US has been providing the Mexican authorities with some projects and programs such as interdiction of shipment of cocaine which comes from South America, stemming the manufacture and carrying of opium poppy and marijuana. In addition to this it has come up with a program of controlling precursor chemicals employed in methamphetamine production (Los Angeles Times). Mexico, over the years, had decided to curb the problem with no support from the US. This sensitivity of national sovereignty created difficulties for the two nations to establish good coordination for the counter narcotics operations. Later in early 1990s there was some improved cooperation while in 1998, the two countries concluded this by signing the Bi-national drug Control Strategy. They have kept on cooperating to curb the flow of drugs across the border despite the challenges experienced (Luis). Despite the fact that the two countries have been putting so much effort to fight the flow of drugs from or through Mexico to United States of America through the US-Mexico border, thousands of tons of illegal drugs have still been flowing from Mexico into the USAevery year. There have been fewer cases of reported seizures of this illicit business in the border over the past years. 1.30 Justification Several challenges that the counter-narcotics face have prevented it from achieving its goals. One of the major problems is good cooperation and co-ordination between the two country’s authorities. 's authorities. Creating this link would help to over come some of the barriers created in this war. This research seeks to find out some of the major challenges posses which prevent the authorities from attaining a zero tolerance to trafficking of drugs across the border and the solutions to them. 1.40 Hypothesis Being aware of the challenges and problems faced in the war against the flow of drugs across the border would help in understanding how to overcome them and eventually winning the fight against this vice. 1.50 Objectives 1. To find out whether the illegal drug have still been flowing to US across the border without being seized. 2. To find out the reasons why this drugs are flown in without being noticed by the counter-narcotics and the authorities 3. To suggest what the authorities of the two countries should do to improve the situation. 2.0 Literature Review There have been several efforts made by both authorities to cease the flow of illicit drugs. In 2000, the Mexican Authorities reported that the average amount of cocaine coming into Mexico which intention of transshipment into the United States of America has been estimated to be about 290 metric tons. The amount reported to have been seized in the US-Mexico Border is about 36 metric tons that year. The amount of quality marijuana as well as heroin manufactured in Mexico the same year is estimated to be about 9,400 metric tons per year for marijuana and about 19 metric tons for heroine. Reported seizures for marijuana is said to be about 2,900 metric tons for a year while for

Feminism Vs Queer theory Essay Example for Free

Feminism Vs Queer theory Essay The book by Catherine Churchill titled ‘Cloud Nine’ provides insight into the two very different types of societies in the two acts of the book and depicts the change in the characters in terms of their femininity and sexual orientation. The diverse factors impacting the lives of the characteristics like power, wealth and politics as well as their ion satisfactions levels in different relationships have been discussed through the use of comedy and the art of storytelling. The book highlights the concepts of feminism and queer theory through its content and the way the lives of the characters play out in the two different acts of the book. Feminism is basically defined as the change or orientation towards women empowerment. It is made up of the social, cultural as well as the political reforms, movements and diverse theories which contribute towards equality between makes and females and highlights the equal rights movement for the women. The basis of feminism is the exhalation of the position of women in the society. Queer Theory on the other hand is a branch of gender studies which pertains to the gay and lesbian studies. This field is specific to diverse sexual orientation in women and takes its foundation form the feminism movement and theory itself. The inclination towards feminism in the book and the play of Cloud Nine is very explicit as depicts how the women are oppressed in the Victorian era so much so that they are forced to disguise themselves as men to hide their feminine identity when giving in to their strong nature and ambitions. The play clearly and explicitly describes the differences in the roles of the women and the men in the Victorian era, and in the modern era, therefore depicting how they have changed to an extent, but not as much as they should have. in the first act the play violently depicts the male oriented society by initiating with a welcome for the male gender, and present the allude of power, in context of economics as held by men in the society. Aside from this the play also depicts the position of the women in history as the subservient gender. This established the concept that the role and cultural construction of the females in the society is a product more of history and tradition than of their own capabilities, thus reinforcing the concept of feminism. The queer theory is expanded upon by the author in the play though the confused sexual orientation of the characters and the cross dressing and role reversal amongst the cast in the play. â€Å"Churchill clearly intended to raise questions of gender, sexual orientation, and race as ideological issues; she accomplished this largely by cross-dressing and role-doubling the actors, thereby alienating them from the characters they play. † (Worthen, 807). The characters in the play like those of Gerry the homosexual man and the lesbian mother provide the essence of the queer theory. In fact it can even be mentioned that Cloud Nine is an explicitly queer play. The structure of the play is very confusing for the audience as well as the readers due to the role reversals by the characters, and the language used in the play is highly oriented towards the depiction of feminism and queer theory. The play clearly points out the underlying issues in the societies pertaining to women oppression, women’s rights as well as gay pride and sexual orientation of the men and women. Moreover the play is highly political in nature as it tends to shock the audience and the readers through the presentation and the roles played by the characters. On the whole however the play contributes towards the literary identity development of women in the modern society. References Barry, P. , ‘Beginning Theory: An Introduction to Literary and Cultural Theory (Beginnings)’, Manchester University Press, (2002) , ISBN-10: 0719062683 Caslin, S. , ‘Feminism and post-colonialism’, accessed March 15, 2008 from http://www. qub. ac. uk/schools/SchoolofEnglish/imperial/key-concepts/feminism-and-postcolonialism. htm Churchill, C. , ‘Cloud Nine’, Nick Hern Books, (1989), ISBN-10: 1854590901 Marx, K. , ‘The Communist Manifesto: Complete with Seven Rarely’, Filiquarian Publishing, (2005), ISBN 1599869950 Worthen, W. B. , ‘The Wadsworth Anthology of Drama’, Heinle, (2003), ISBN-10: 0838407501

Consider Thomas Hardys Essay Example for Free

Consider Thomas Hardys Essay In the dictionary the word Isolation means to be separate or a part from others. I think if someone is isolated then it would be a negative aspect because they are alone and have nothing to do with anyone else. The reason for the various isolations in the two texts differs because of the different time periods they were set in. In the two books I am comparing is the Withered Arm by Thomas Hardy and Of Mice and Men by John Steinbeck. I feel that in both texts there are a few characters with their lives or they had illegitimate children. The text Of mice and Men was written in the 1930s the time period of the depression. In the most of John Steinbecks books he describes the life of people working on the land and that his characters are all often poor. This was because he wanted to show how real the life was during that time. Within his books men and women rarely understood each other because of the lack of communication. During the time when John Steinbeck wrote Of Mice and Men people would frown upon coloured people, the handicapped, the old and women. They also were prejudice about women. The text the Withered Arm was written in the late 19th century in England. The book is set in a place called Wessex and the expectations at the time are different compared to the ones we have in todays society. In that time social classes were expected to marry inside their class and not below that. Otherwise this would be considered a disgrace to the family of the higher class. Thomas Hardy introduces Rhode as his First character who is isolated. He establishes her isolation as her sitting on her away from the others Where a thin fading women of thirty milked somewhat apart from the rest. The word fading and somewhat apart from the rest reveals that she was separated from the rest of the milkmaids. Further on in the first chapter Hardy also establishes her loneliness by where she lives lay part from that of the others, to a lonely spot high above the water-meads this also show her isolation. The characters who are lonely are Candy, Crooks and Curleys wife in the text Of Mice and Men. They are lonely because each one of them is different from everyone else. Such as Crooks is black, Candy is disabled and Curleys wife is a women. The reason for them being lonely is because of the societys attitude, which they lived in. The two characters that are not lonely are George and Lennie. This is as they have each other for company whereas everybody does not. Lennie and George treat each other, as they were family because they have been together for a very long time. Because I got you an___ An I got you. We got each other, thats what, that gives a hot in hell about us. That quote indicates what Lennie say to George about them having each other to look after and keeping each other company. George needed Lennie because he wanted someone who would listen to him and not say anything. Lennie need Georges because he is not able to handle himself and also George promised Lennies aunt that he would look after him. Thomas Hardy describes Rhodes Brooks house as it old and worn It was built of mud walls, the surface of which had been washed by many rains left none of the original flat face visible here and there in the thatch above a rafter showed like a bone protruding through the skin. This suggests that Rhode did not a great house and that it was old just like her. The quote also indicates that the house had been through some hard times. In the text Of Mice and Men John Steinbeck writes about one female character that is known as Curleys wife. As the reader I feel sympathy for her, as she is the only woman on the ranch. She is also isolated because her husband does not like her talking to any of the other workers, and also her own husband hardly speaks to her. The author has not given her a name because during that time period women were not as important as men, furthermore she is so isolated that the author decided on not given her a name. The effect this has on the reader is that she belongs to Curley unlike her being an individual person. So therefore the reader feels a little bit of sympathy for her. Thomas Hardy writes about a little boy in his book Withered Arm who is also nameless like Curleys Wife. In the book he is referred as Rhodes son. Rhodes son is isolated because his mother had an affair with Farmer Lodge. The main reason that he is isolated is that his mother moved further away from the farm, so therefore he does not live close by to anybody. I feel that Rhodes son is a victim of the circumstances between Farmer Lodge and Rhode because he was a product of their affair, and then Rhode moved away so she could be away from society. As a result Rhodes son does not have friends. John Steinbeck writes about another isolated man named Crooks. The reason Crooks is so isolated is because during the time period everyone was prejudice against coloured people, and he was black. Another reason he is isolated as that he isolates himself to have some respect in the white world. Crooks was born with a disability, therefore he feels that he need to isolate himself further. He makes friends with Candy and Lennie as they isolated on the farm. When Crooks first meets Candy and Lennie it says he kept is his distance and demanded that other people keep theirs. This indicates that Crooks does not want anyone to be close to him. Though as the story goes on he makes friends with Candy and Lennie. I feel sorry for Crooks for being coloured and handicapped as he is very friendly person. In both the texts that I read there are two more handicapped people, named Gertrude from the Withered Arm and Candy from Of Mice and Men. Candy is isolated as he is old and has only got one arm since it was cut off when he was working on the farm. Gertrude isolated because one night Rhode cast a spell on her arm. In both texts Gertrude and Candy are alike because of their arms. They are not as isolated as Crooks or Rhode, since they only have a small isolation problem, unlike the rest. In the beginning of the text Withered Arm Farmer Lodge is presented as being bold and proud. He is proud as he has a new wife Gertrude, who is a lot younger than him and plus she is very beautiful. Gertrude starts to get a problem in one of her arms, as time passes her arm gets worse, therefore Farmer Lodge feels as she is not as pretty as before. This makes Farmer Lodge change. He also feels depressed since his son is hung and this changes him. The reason for him to isolate himself is that all these problems are occurring around him and he feels that it is his fault. So he moves away from his farm. In conclusion I consider that isolation is a negative aspect in someones life. I think that when people are isolated dreaming keeps them from getting trough. Like for instance Lennie and Georges dream to open up a farm or their own and Rhodes dream to get back with Farmer Lodge. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE John Steinbeck section.

Effect of Human Resources on Global Expansion of MNCs

Effect of Human Resources on Global Expansion of MNCs MBA Literature review The Relevance of Innovative Human Resource Programs to Facilitate Global Expansion of Multinational Companies (MNCs) from the UK. 2. Introduction The activities of multinational companies (MNCs) are at the heart of Britains internationally open and global economy. This global economy has emerged as companies all over the world are joining forces through alliances, mergers, joint ventures, acquisitions, and the like, thus creating the need for a constant mobile workforce and the HRM strategies to support and develop it. This would therefore imply a fundamental shift in the role of human resources from transaction and administration to strategy and business transformation through innovative programmes which supports the global strategy of the company. This section gives an overview of the literature review and the theoretical basis for the forthcoming chapters. The chapter consists of journals, books and research materials which throw more light into Innovative Human Resource Programs to Facilitate Global Expansion of Multinational Companies (MNCs) from the UK. The following were the primary information sources used for the literature review; ACM Digital Library Pro-Quest Direct EBSCO Publishing Gale Group Info Track OCLC First-Search Java Sun Microsystems Library IEEE Library Emerald Database 2.1 Evolution from Personnel Management to HRM According to Guest (1987), the origins of the traditional concept of personnel management can be traced to the post World War One welfare tradition of concern for the basic needs of employees. The developing and mature phases of personnel management from the 1940s to the 1970s saw an increase in the status and professionalism accorded to the personnel function, particularly in relation to industrial relations (IR) matters (see Sparrow 2004). The concept of HRM, as a new strategic approach to the management of people, evolved in the early 1980s (Ericksen 2005). Its evolution was influenced by a range of factors, including increased competitive pressures caused by deregulation and globalisation, and the influence of notable academics in the US and the UK (Ericksen, 2005). Although it has been suggested that HRM may be no more than old style personnel management with a new name (Gunnigle and Flood, 1990), Storey (1992) identifies four features of HRM which distinguish it from traditional personnel management: it is explicitly linked with corporate strategy; it seeks to obtain the commitment of employees rather than their compliance; employee commitment is obtained through an integrated approach to human resource policies (for example, reward, appraisal, selection, training); and unlike personnel management, which is primarily the domain of specialists, HRM is owned by line managers as a means of fostering integration. 2.1.1 Approaches to Human Resource Management 2.1.1.1 Hard Approach If an organisation focuses on control of resources and achievement of strategy, it may adopt a hard approach to HRM (see Storey, 1989) in which employees are viewed as a resource to be managed like any other factor of production. In this approach, the critical task for management is to align the formal structure and HR systems of the organisation so that they drive the strategic objectives of the organisation. This approach is exemplified in the strategic model of HRM developed by Fombrun et al (1984). It has been argued however that an over-emphasis on hard HRM ignores the potential resistance of workers and trade unions, factors which cannot be ignored if business strategy is to succeed (see Hendry, 1995). 2.1.1.2 Soft Approach In contrast, an organisation may place an emphasis on a soft approach to HRM (Storey, 1992 p. 30), in which employees are viewed as a valuable asset whose commitment will assist in achieving organisational success. The objective for organisations in such an approach is to integrate HR policies with the strategic planning process, to gain the willing commitment of employees, to achieve flexibility through avoidance of rigid bureaucratic structures and to improve quality (see Guest, 1987). The most well known soft model of HRM is known as the Harvard Model of HRM (Beer et al 1984), views business strategy as just one situational factor which influences managements approach to HRM. This model identifies a range of other situational factors which influence HR policy choices, including prevailing management philosophy, laws and societal values. In the context of this study, this model is significant in that it identifies a range of stakeholder interests (including unions, government and m anagement) which influence HR policy choices. It is argued that unless HR policies are influenced by key stakeholders, the enterprise will fail to meet the needs of these stakeholders, and ultimately its own objectives (see Beer et al 1984). 2.1.1.3 Ideal Type Model: Integrated links from Personnel to HRM Storey (1992) outlines a further model which illustrates the process involved in shifting from traditional personnel management to HRM. While this is an ideal type model, it comprises features which are significant for this study. For example, it stresses the need for integrated links between beliefs, assumptions, management issues and key elements of HRM. It also identifies key levers of change in the various elements of HRM, including recruitment and selection, training and development and conditions of employment. A strategic approach to HRM can be developed by creating effective policies in these areas (Storey 1992) 2.1.2 The integrative aspects of HRM A key theme running through many of the models is integration, which according to Guest (1987) lies at the heart of HRM. He identifies integration at three levels: integration of HRM policies with business strategy; integration of a set of complementary HRM policies; integration of HRM into the line management function. 2.1.3 The Role of Management According to Storey (1992), best practice indicates that the extent to which the transition process from traditional personnel functions to strategic HRM functions can be achieved will be influenced significantly by the belief and support of senior management in the added value that HRM can contribute to the organisation. More importantly, this belief must be visibly demonstrated, for example by committing additional resources to the development of HR strategy and the building up of HR skills levels. As a first step, the head of HR should be afforded a genuine role in the formulation of key business decisions. This contribution must be an integral part of the business strategy formulation process, so that HR issues are accorded a key priority as opposed to simply being added on to, or indeed excluded from, the core business of the organisation. On an ongoing basis, heads of HR should also be enabled to have a genuine input into decisions taken at top management level which have impli cations for HR. Clearly, if the head of HR is to be enabled to play a genuine role in ensuring that HRM issues become a top management priority, it is important that the professionalism accorded to HR, for example through the development of expertise in integrating HR and business strategies, begins at this level. 2.2 Definitions: Innovative HR Programmes According to Agarwala (2003), defines innovative human resource programmes of a company can be described as: Any intentional introduction or change of HRM program, policy, practice or system designed to influence or adapt employee the skills, behaviours, and interactions of employees and have the potential to provide both the foundation for strategy formulation and the means of strategy implementation that is perceived to be new and creates current capabilities and competencies (Agarwala, 2003). 2.2.1 Innovative HR Programmes According to James (2002), innovative programmes can be grouped into a set of new initiatives which are associated with the process of developing a strategic approach to HRMenhancing its competitiveness. A few of these include: Reducing costs through shared services centres, self-service, and outsourcing. Develop uniform HR processes recognising local regulatory requirements to help foster a low-cost, administrative delivery model. Create a self-service culture for employees and managers. Establish global employee shared services centres focused on delivering HR administrative support to multiple geographic areas, thereby reducing administrative overhead. Outsource key services that can be more efficiently managed and administered externally. Streamlining technology and information management Improve information access to help companies more efficiently manage their human capital assets, provide employees and managers with enhanced access to information, improve HR reporting, and address growing compliance requirements. Reduce HR technology operating costs by consolidating multiple technologies, technical infrastructure, and IT skills. Managing people globally Help enable the company to respond to the interdependencies of global markets by managing human assets globally rather than nationally or regionally thereby improving competitiveness in the international marketplace. Enabling HR to shift its focus from administration to strategy Remove the administrative component of the work of business HR professionals, enabling them to provide more value-added services and to focus on consultative and analytical interactions with line managers. Facilitate HRs transition to a strategic partnership with the company by upgrading talent and skills within the HR function. 2.3 Background: Human Resource Evolution According to Cooke (2003), first Generation HR Transformation represented a fundamental shift in HRs role, from transactions and administration to strategy and business transformation. First Generation HR Transformation focused on changing the existing relationship between employees, managers, and HR, (Randall 2006). With technology as a key enabler and process re-engineering playing a pivotal role, this First Generation effort sought to help make employees more self-sufficient, whilst asking them to take more responsibility for their own careers (Datta et al 2005). It also sought to help remove HR from the middle of the employee/manager relationship by making managers more responsible for handling their employees HR needs. Over the past ten years, HR Transformation has led to a major restructuring of HR operations and processes transforming the way HR services are delivered Cooke (2003). 2.4 UK MNCs: Achieving Global Expansion MNCs in the United Kingdom have long been well established in manufacturing, but in recent years they have emerged as dominant players in the private service sector and have even become involved in the provision of public services (Edwards 2004). Levels of both inward and outward investment are high: foreign direct investment (FDI) into the UK by companies based overseas accounts for almost 9% of the total global stock while UK-based companies investments overseas account for over 14% of the global stock (Edwards 2004). In both instances, the UK is second only to the worlds largest economy, the United States. As a result MNCs are significant employers in Britain; for example, 18% of the workforce in the production sector are employed by overseas-owned companies with many more being employed in the domestic operations of British-owned multinationals (Edwards 2004). For multinational companies in the UK to achieve a successful transition in their drive for global expansion and competitive advantage, multinational companies would require innovative HR programmes which would enable them to anticipate critical workforce trends, shaping and executing business strategy, identifying and addressing people-related risks and regulations, enhancing workforce performance and productivity, and offering new HR services to help a company improve and grow (Edwards et al 2007). 2.5 HR Practices: Effectiveness A number of authors have explored the links between individual HR practices and corporate financial performance. For example, Lam and White (1998) reported that firms HR orientations (measured by the effective recruitment of employees, above average compensation, and extensive training and development) were related to return on assets, growth in sales, and growth in stock values. Using a sample of banks, Richard and Johnson (2001) examined the impact of strategic HRM effectiveness (ratings of how effectively a variety of HR practices were performed) on a number of performance variables. They found that strategic HRM effectiveness was directly related to employee turnover and the relationship between this measure and return on equity was stronger among banks with higher capital intensity (greater investments in branches). In this thesis, HRM would be described in the context of a number of innovative practices which have been proven to enable MNCs manage the transition process in thei r drive for global expansion, thus enabling organizational effectiveness and better performance outcomes. Wright and McMahan (1992) defined innovative human resource programmes as practices and activities employed to enable an organization achieve its goals. These practices are seen as a departure from the traditional HR activities. Delery and Doty (1996) asserts that these practices are key drivers required by MNCs to respond with the right strategy as they expand their operations in different environments (Boselie et al, 2005). 2.6 Empirical Research: Human Resource Factors MNC Global Expansion The drive for global expansion by UK MNCs has necessitated the need for a human resource strategy that would ensure that the company is able to sustain its workforce. This has therefore led to the departure from the traditional HR administrative role to a more robust global HR function which takes cognisance of employee profile, the work and environment demographics, de-skilling, re-skilling and multi-skilling and issues related to outsourcing and synergy of its processes vis-à  -vis work-force reduction Lam and White (1998). The largest survey of employment practice of multinational companies (MNCs) in the UK was carried out by Edwards et al (2007). The key findings from the first large-scale, representative survey of employment practice in MNCs which have operations in the UK. The survey is comprehensive in its coverage of all but the smallest international companies. The findings derive from interviews with senior HR executives in each of 302 multinationals operating in Britain, both overseas- and UK-owned. The findings from the research suggest a connection between human resource practices and the performance of firms, a summary include the following HR programmes stated below. 2.6.1 Innovative HR Practice: Compensation Payment 85% of the firms surveyed were found to have a robust innovative program in terms of compensation and payment. This is achieved through a performance appraisal programme such as upward/peer appraisal and forced distribution. 72% of the MNCs utilized an innovative scheme for managers, through individual ‘output criteria which were supplemented by a range of other criteria including behaviour in relation to desired competencies and to corporate values. 2.6.2 Innovative HR Practice: Training Development Programmes In respect of adoption of high potential innovative training programmes among MNCs, the organisations were asked if both their UK and overseas operations had a management development programme specifically aimed at developing its ‘high potentials or senior management and employee potential. The data show that high potential programmes are adopted by 70% of organisations; 30% of organisations are not using them. Organisations were asked whether they used a global high potential programme that was adopted elsewhere worldwide, or a local, nationally specific programme. Most organisations indicated that their programmes are global in scope. 2.6.3 Innovative HR Practice: Appraisal Activities In comparison of performance appraisal practices and management values, the formal performance appraisal schemes for all three groups are very widespread; over nine out of ten firms have them for key group and managers, and over 80% have them for large occupational groups. Only 3% of firms have no formal appraisals at all. Just over a fifth of firms use ‘forced distributions for the results of appraisal. A clear majority of firms use the results of appraisal as the basis of decisions on redundancy and redeployment. 2.6.4 Innovative HR Practice: Employee Involvement Communication UK-based multinationals most commonly cite ‘setting a broad policy HR programme as being significant or very significant (62% and 66% for training and development and for employee involvement policy respectively). HR advice and consultancy is also relatively prominent for training and development policy (53% significant or very significant), but less so for employee involvement policy (33%). For training and development, and employee involvement, policy, the respective proportions reporting the other means of influence as significant or very significant are: setting detailed HR policies (32% and 31%); monitoring HR policy implementation (39% and 34%); and HR benchmarking and information exchange (42% and 28%). 2.6.5 Innovative HR Practice: Global Knowledge Sharing Diffusion In respect of innovative HR programmes which promote employee knowledge, learning and diffusion, international employee learning mechanisms are used extensively across all MNC both within the UK and across overseas operations. The survey focused on five formal organisational learning mechanisms used by managers that are international in their scope: International projects groups or task forces, which are often used to address specific issues; International formal committees; Secondments involving the placing of MNC employees in external organisations such as suppliers, customers, universities or private RD companies; Expatriate assignments The evidence showed that the most common organisational learning mechanism adopted among the managerial community within MNCs is the informal network (used by 84% of companies). International project groups/task forces also play a prominent role (used by 73% of organisations) and to a lesser degree expatriate assignments (used by 60% of organisations) and international formal committees (53% of organisations). In contrast, secondments are only adopted by around a quarter of the organisations (26%). The majority (82%) of organisations use two or more organisational learning mechanisms, with 53% adopting between three and four of the five organisational learning mechanisms among their managerial community. Around 9% fail to use any of the mechanisms listed. MNCs requiring integration between the UK operations and other sites worldwide are significantly more likely to adopt multiple organisational learning mechanisms (Tregaskis, Glover and Ferner, 2005). However, these national variatio ns show that the form that organisational learning and diffusion take is strongly shaped by the national context of the parent firm. 2.6.6 Innovative HR Practice: UK MNCs Use of Shared Services According to Edwards et al (2007), the findings from the study found that half of the UK MNCs operate shared services centres and have international HR policy formation bodies. They are far less likely, compared to US and other European MNCs, to have a worldwide approach to workforce management. UK firms consistently aim to pay a greater proportion of employees (managers, LOG and key group) in the top or 2nd quartile. Nine in ten UK firm have performance appraisal for their managers while seven in ten have formal appraisals for their LOG (Edwards et al 2007). Use of forced distribution is uncommon as is the use of 360-degree feedback. An overwhelming majority of UK MNCs tend to recognise trade unions for collective bargaining purposes. Formally designed teams and problem-solving groups are commonly found in UK MNCs as are a large number of communication mechanisms with meetings between line managers and employees, newsletters/emails and systematic use of the management chain the most commonly found communication mechanisms. Although the majority of UK MNCs have succession planning and formal management development programmes these tend to be comparatively less than other MNCs. 2.6.7 Use of Expatriates According to Edwards et al 2007, UK MNCs make considerably greater use of parent country expatriates than third country expatriates. This may reflect the short geographical proximity and cultural similarity between the UK and Ireland. UK MNCs tend to have considerable discretion over the various HR policy areas, much more than US firms. 2.6.8 IT Based Networks Services A key development in HR service provision over the past two decades has been the increased use of information technology (IT) (Edwards et al 2007). This is all the more relevant in MNCs, where IT systems may be used to monitor policy implementation and performance, and also to facilitate communications and networking, across borders. It thus provides an insight on the extent to which corporate management has access to HR data on its international operations and can compare performance on HR metrics across sites and countries. Specifically examined was the usage of IT based HR information systems (HRIS) and ‘shared services provision on an international level. In regard to the diffusion of HRIS, respondents were asked whether the worldwide company had an â€Å"HR Information System (such as PeopleSoft or SAP HR) that holds data relating to the firms international workforce†. The responses for both foreign and UK-owned MNCs showed that just over half (54 per cent) of all MNCs in the UK reported the use of HRIS that operates on an international basis. This is a similar to a study by Collings et al (2007), that found in the parallel UK study, where some 52 per cent used such a system (Edwards et al., 2007). However, among MNCs in the UK, a greater proportion of foreign-owned MNCs (56 percent) than UK-owned MNCs (44 per cent) reported the use of HRIS on an international basis (Edwards et al 2007). There were some discernable differences in regard to ownership. As indicated from the study, American firms were the highest users of HRIS (70 per cent), while the ‘rest of the world MNCs is the least likely. This again resonates with the UK findings where US MNCs were among the greatest users of HRIS and Japanese MNCs the lowest (Edwards et al, 2007). The impact of sector on the take-up of HRIS will be fully outlined and placed in the appendix in the forthcoming chapters. Among UK MNCs, the service sector accounted for the greatest number of firms with HRIS. However, among foreign-owned MNCs multi-sector firms were by far the largest users, followed by those in the service. 2.7 Previous Research: Human Resource Factors Previous studies have been utilized in exploring the current human resource innovative programmes that UK MNCs must take into account in their drive for global expansion. One of the main limitations of this review is that it is limited within the context of UK MNCs as there was the lack of evidence to determine the effects of these practices on MNCs operating in the context of both emerging and non-emerging economies. This is in consonance with Ericksen and Dyer (2005) and Wright et als., (2005), both of who also called for further empirical research from different contexts. Gerhart (2005) substantiate the question, to what extent are these innovative HR programmes valid for other context by saying: â€Å"This is a concern because it seems unlikely that one set of HR practices will work equally well no matter what context†. To shed more light on the issue and to further examine the relevance and effects of such programmes, it is important to conduct research in non-US / UK con text, (Katou Budhwar, 2007), especially in emerging economies. 2.8 HR Factors for Global Expansion: Effectiveness Previous research has explored the links between individual HR practices and corporate overall performance. For example, Lam and White (1998) reported that firms HR innovative programmes which are largely measured by the effective recruitment of employees, compensation programme, and extensive training and development were related to return on assets, growth in sales, and growth in stock values. Using a sample of manufacturing companies, multinational servicing companies and global financial institutions, Richard and Johnson (2001) examined the impact of strategic HRM effectiveness (ratings of how effectively a variety of HR practices were performed) on a number of performance variables. The findings suggested that implementation of innovative HR programmes had an effect on employee turnover and the overall performance of the company. 2.8.1 Recruitment Selection According to Terpstra and Rozelles (1993), who compared the relationship between recruiting / selection practices among US / UK MNCs and the firms performance, it was found that there was a strong connection in the companys performance between implementation of the new HR practices and the previous traditional practices, this was focused mainly on recruiting, selection and the use of formal selection procedures and firm performance. Cascio (1991) also states that the improved performances recorded after implementation of such new HR practices are generally substantial. 2.8.2 Employment Training Programmes Russel, Terborg and Powers (1985) in a survey of 30 US MNCs establish a link between the adoption of employment training programs and financial performance. The use of performance appraisals (Borman, 1991) and linking such appraisals with compensation has strongly been connected with the performance of a firm. (Gerhart Milkovich, 1990). Koch and McGrath (1996) reported that firms using more sophisticated staffing practices (planning, recruiting, and selection) had higher labour productivity. 2.8.3 Communication Employee Involvement Huselid (1995) reported that HR practices can influence firm performance through provision of organization structures that support involvement among employees and provides flexibility for improvement of job performance. Green et al (2006) states from findings of a survey that organizations that vertically aligned and horizontally integrated core human resource functions and practices performed better and produced more committed and satisfied HR function employees who exhibited improved individual and organizational performance. 2.8.4 Other Models Most of the work on innovative human resource programmes and the companys performance has been undertaken in the context of MNCs who consider the US and the UK as their home country. The question which arises, though, is whether the UK and US-oriented models are appropriate and representative in other contexts (see debate in special issue of the International Journal of Human Resource Management, 12(7), 2001). Other studies analyzed such as Harel and Tzafrir (1999) found that in parts of Asia and the middle-east, innovative HR practices were related to perceived organizational and market performance. Bae and Lawler (2000) did find a significant relationship between HR practices and firm performance in their sample of 140 manufacturing firms in Asia, covering china, Japan and South Korea. Lee and Miller (1999) also found a strong relationship between HR practices and performance among a number of MNCs in Asia, but it is clearly stated that this relationship was most strongly pronounce d among firms using dedicated positioning (marketing differentiation or innovative differentiation) strategies. Bae et al., (2003) in their study of HR strategy in Pacific Rim countries found that the evidence of a strong relationship was however based on strict high-performance work system with a number of variable conditions. Morishima (1998) found support for the contingency perspective in a sample of Japanese companies. Firms with well-integrated high-involvement work practices and firms with well-integrated practices consistent with more traditional Japanese employment strategies both did better than firms with poorly integrated practices. Bae et al (2003) in their investigation of Hong Kong multinational companies found an increase in the firms performance due to certain core innovative HR work practices (training and compensation techniques) with high involvement characteristics. 2.9 Implementation Whilst there are currently limited researches in respect of implementation of innovative HR programs in the context of UK MNCs, however, according to Briscoe and Schuler (2004), Implementation may vary in respect of ‘what and how, thus limiting the value of comparative survey research. Chew and Horowitz (2004) states that the subject of implementation should only be considered in the context of the specific MNC or firm involved, as there are lots of contextual factors and limitations in implementation hence the need to be cautious and dissuade any hasty conclusions when taking on findings from research journals on implementation. Horowitz (2004) states that primary research on implementation would need to focus on contingency approaches and mediating variables affecting the MNC level application. A number of theoretical approaches would also add to the importance of ‘context frameworks such as integration/divergence or universalism versus local particularism, and ethnocen tric, geocentric, regiocentric and polycentric managerial strategies (Chew et al 2004). The author believes that such an extensive approach would not only examine the relationship between human resource innovative practices and relevance, but would take into account the host environment. 2.9.1 Implementation Expansion: Formation of HR Strategies According to Briscoe et al (2004), very little work has been done on the formation of methods for implementing and controlling the transition from specific administration HR services unto innovative programmes that are directly linked to strategic challenges such as increasing revenue through new market entry or mergers and acquisitions. The formation of the UK MNCs corporate strategy has to take into account the balance between those activities that need to be centralized or standardized and the degree of flexibility required by the affiliate to operate in the host country Brock (2005). The formation of HR strategies is distinguishable by variance in terms of level of abstraction and scope. The level of abstraction refers to the level at which the HR strategy is focused. According to Combs et al. (2006), there are different levels of abstraction in the design of a global HR system. Levels vary from recommendations, policy, to operational-level procedures. With a policy-level of abstraction, affiliates are given the freedom to implement their own HR strategies within the broad parameters of the standardized policies. However, with an operational level of abstraction, affiliates are expected to implement a more detailed HR management practice. Scope refers to the extent of HR management practices dealt with in the HR strategy. For example, the HR strategy may have a Effect of Human Resources on Global Expansion of MNCs Effect of Human Resources on Global Expansion of MNCs MBA Literature review The Relevance of Innovative Human Resource Programs to Facilitate Global Expansion of Multinational Companies (MNCs) from the UK. 2. Introduction The activities of multinational companies (MNCs) are at the heart of Britains internationally open and global economy. This global economy has emerged as companies all over the world are joining forces through alliances, mergers, joint ventures, acquisitions, and the like, thus creating the need for a constant mobile workforce and the HRM strategies to support and develop it. This would therefore imply a fundamental shift in the role of human resources from transaction and administration to strategy and business transformation through innovative programmes which supports the global strategy of the company. This section gives an overview of the literature review and the theoretical basis for the forthcoming chapters. The chapter consists of journals, books and research materials which throw more light into Innovative Human Resource Programs to Facilitate Global Expansion of Multinational Companies (MNCs) from the UK. The following were the primary information sources used for the literature review; ACM Digital Library Pro-Quest Direct EBSCO Publishing Gale Group Info Track OCLC First-Search Java Sun Microsystems Library IEEE Library Emerald Database 2.1 Evolution from Personnel Management to HRM According to Guest (1987), the origins of the traditional concept of personnel management can be traced to the post World War One welfare tradition of concern for the basic needs of employees. The developing and mature phases of personnel management from the 1940s to the 1970s saw an increase in the status and professionalism accorded to the personnel function, particularly in relation to industrial relations (IR) matters (see Sparrow 2004). The concept of HRM, as a new strategic approach to the management of people, evolved in the early 1980s (Ericksen 2005). Its evolution was influenced by a range of factors, including increased competitive pressures caused by deregulation and globalisation, and the influence of notable academics in the US and the UK (Ericksen, 2005). Although it has been suggested that HRM may be no more than old style personnel management with a new name (Gunnigle and Flood, 1990), Storey (1992) identifies four features of HRM which distinguish it from traditional personnel management: it is explicitly linked with corporate strategy; it seeks to obtain the commitment of employees rather than their compliance; employee commitment is obtained through an integrated approach to human resource policies (for example, reward, appraisal, selection, training); and unlike personnel management, which is primarily the domain of specialists, HRM is owned by line managers as a means of fostering integration. 2.1.1 Approaches to Human Resource Management 2.1.1.1 Hard Approach If an organisation focuses on control of resources and achievement of strategy, it may adopt a hard approach to HRM (see Storey, 1989) in which employees are viewed as a resource to be managed like any other factor of production. In this approach, the critical task for management is to align the formal structure and HR systems of the organisation so that they drive the strategic objectives of the organisation. This approach is exemplified in the strategic model of HRM developed by Fombrun et al (1984). It has been argued however that an over-emphasis on hard HRM ignores the potential resistance of workers and trade unions, factors which cannot be ignored if business strategy is to succeed (see Hendry, 1995). 2.1.1.2 Soft Approach In contrast, an organisation may place an emphasis on a soft approach to HRM (Storey, 1992 p. 30), in which employees are viewed as a valuable asset whose commitment will assist in achieving organisational success. The objective for organisations in such an approach is to integrate HR policies with the strategic planning process, to gain the willing commitment of employees, to achieve flexibility through avoidance of rigid bureaucratic structures and to improve quality (see Guest, 1987). The most well known soft model of HRM is known as the Harvard Model of HRM (Beer et al 1984), views business strategy as just one situational factor which influences managements approach to HRM. This model identifies a range of other situational factors which influence HR policy choices, including prevailing management philosophy, laws and societal values. In the context of this study, this model is significant in that it identifies a range of stakeholder interests (including unions, government and m anagement) which influence HR policy choices. It is argued that unless HR policies are influenced by key stakeholders, the enterprise will fail to meet the needs of these stakeholders, and ultimately its own objectives (see Beer et al 1984). 2.1.1.3 Ideal Type Model: Integrated links from Personnel to HRM Storey (1992) outlines a further model which illustrates the process involved in shifting from traditional personnel management to HRM. While this is an ideal type model, it comprises features which are significant for this study. For example, it stresses the need for integrated links between beliefs, assumptions, management issues and key elements of HRM. It also identifies key levers of change in the various elements of HRM, including recruitment and selection, training and development and conditions of employment. A strategic approach to HRM can be developed by creating effective policies in these areas (Storey 1992) 2.1.2 The integrative aspects of HRM A key theme running through many of the models is integration, which according to Guest (1987) lies at the heart of HRM. He identifies integration at three levels: integration of HRM policies with business strategy; integration of a set of complementary HRM policies; integration of HRM into the line management function. 2.1.3 The Role of Management According to Storey (1992), best practice indicates that the extent to which the transition process from traditional personnel functions to strategic HRM functions can be achieved will be influenced significantly by the belief and support of senior management in the added value that HRM can contribute to the organisation. More importantly, this belief must be visibly demonstrated, for example by committing additional resources to the development of HR strategy and the building up of HR skills levels. As a first step, the head of HR should be afforded a genuine role in the formulation of key business decisions. This contribution must be an integral part of the business strategy formulation process, so that HR issues are accorded a key priority as opposed to simply being added on to, or indeed excluded from, the core business of the organisation. On an ongoing basis, heads of HR should also be enabled to have a genuine input into decisions taken at top management level which have impli cations for HR. Clearly, if the head of HR is to be enabled to play a genuine role in ensuring that HRM issues become a top management priority, it is important that the professionalism accorded to HR, for example through the development of expertise in integrating HR and business strategies, begins at this level. 2.2 Definitions: Innovative HR Programmes According to Agarwala (2003), defines innovative human resource programmes of a company can be described as: Any intentional introduction or change of HRM program, policy, practice or system designed to influence or adapt employee the skills, behaviours, and interactions of employees and have the potential to provide both the foundation for strategy formulation and the means of strategy implementation that is perceived to be new and creates current capabilities and competencies (Agarwala, 2003). 2.2.1 Innovative HR Programmes According to James (2002), innovative programmes can be grouped into a set of new initiatives which are associated with the process of developing a strategic approach to HRMenhancing its competitiveness. A few of these include: Reducing costs through shared services centres, self-service, and outsourcing. Develop uniform HR processes recognising local regulatory requirements to help foster a low-cost, administrative delivery model. Create a self-service culture for employees and managers. Establish global employee shared services centres focused on delivering HR administrative support to multiple geographic areas, thereby reducing administrative overhead. Outsource key services that can be more efficiently managed and administered externally. Streamlining technology and information management Improve information access to help companies more efficiently manage their human capital assets, provide employees and managers with enhanced access to information, improve HR reporting, and address growing compliance requirements. Reduce HR technology operating costs by consolidating multiple technologies, technical infrastructure, and IT skills. Managing people globally Help enable the company to respond to the interdependencies of global markets by managing human assets globally rather than nationally or regionally thereby improving competitiveness in the international marketplace. Enabling HR to shift its focus from administration to strategy Remove the administrative component of the work of business HR professionals, enabling them to provide more value-added services and to focus on consultative and analytical interactions with line managers. Facilitate HRs transition to a strategic partnership with the company by upgrading talent and skills within the HR function. 2.3 Background: Human Resource Evolution According to Cooke (2003), first Generation HR Transformation represented a fundamental shift in HRs role, from transactions and administration to strategy and business transformation. First Generation HR Transformation focused on changing the existing relationship between employees, managers, and HR, (Randall 2006). With technology as a key enabler and process re-engineering playing a pivotal role, this First Generation effort sought to help make employees more self-sufficient, whilst asking them to take more responsibility for their own careers (Datta et al 2005). It also sought to help remove HR from the middle of the employee/manager relationship by making managers more responsible for handling their employees HR needs. Over the past ten years, HR Transformation has led to a major restructuring of HR operations and processes transforming the way HR services are delivered Cooke (2003). 2.4 UK MNCs: Achieving Global Expansion MNCs in the United Kingdom have long been well established in manufacturing, but in recent years they have emerged as dominant players in the private service sector and have even become involved in the provision of public services (Edwards 2004). Levels of both inward and outward investment are high: foreign direct investment (FDI) into the UK by companies based overseas accounts for almost 9% of the total global stock while UK-based companies investments overseas account for over 14% of the global stock (Edwards 2004). In both instances, the UK is second only to the worlds largest economy, the United States. As a result MNCs are significant employers in Britain; for example, 18% of the workforce in the production sector are employed by overseas-owned companies with many more being employed in the domestic operations of British-owned multinationals (Edwards 2004). For multinational companies in the UK to achieve a successful transition in their drive for global expansion and competitive advantage, multinational companies would require innovative HR programmes which would enable them to anticipate critical workforce trends, shaping and executing business strategy, identifying and addressing people-related risks and regulations, enhancing workforce performance and productivity, and offering new HR services to help a company improve and grow (Edwards et al 2007). 2.5 HR Practices: Effectiveness A number of authors have explored the links between individual HR practices and corporate financial performance. For example, Lam and White (1998) reported that firms HR orientations (measured by the effective recruitment of employees, above average compensation, and extensive training and development) were related to return on assets, growth in sales, and growth in stock values. Using a sample of banks, Richard and Johnson (2001) examined the impact of strategic HRM effectiveness (ratings of how effectively a variety of HR practices were performed) on a number of performance variables. They found that strategic HRM effectiveness was directly related to employee turnover and the relationship between this measure and return on equity was stronger among banks with higher capital intensity (greater investments in branches). In this thesis, HRM would be described in the context of a number of innovative practices which have been proven to enable MNCs manage the transition process in thei r drive for global expansion, thus enabling organizational effectiveness and better performance outcomes. Wright and McMahan (1992) defined innovative human resource programmes as practices and activities employed to enable an organization achieve its goals. These practices are seen as a departure from the traditional HR activities. Delery and Doty (1996) asserts that these practices are key drivers required by MNCs to respond with the right strategy as they expand their operations in different environments (Boselie et al, 2005). 2.6 Empirical Research: Human Resource Factors MNC Global Expansion The drive for global expansion by UK MNCs has necessitated the need for a human resource strategy that would ensure that the company is able to sustain its workforce. This has therefore led to the departure from the traditional HR administrative role to a more robust global HR function which takes cognisance of employee profile, the work and environment demographics, de-skilling, re-skilling and multi-skilling and issues related to outsourcing and synergy of its processes vis-à  -vis work-force reduction Lam and White (1998). The largest survey of employment practice of multinational companies (MNCs) in the UK was carried out by Edwards et al (2007). The key findings from the first large-scale, representative survey of employment practice in MNCs which have operations in the UK. The survey is comprehensive in its coverage of all but the smallest international companies. The findings derive from interviews with senior HR executives in each of 302 multinationals operating in Britain, both overseas- and UK-owned. The findings from the research suggest a connection between human resource practices and the performance of firms, a summary include the following HR programmes stated below. 2.6.1 Innovative HR Practice: Compensation Payment 85% of the firms surveyed were found to have a robust innovative program in terms of compensation and payment. This is achieved through a performance appraisal programme such as upward/peer appraisal and forced distribution. 72% of the MNCs utilized an innovative scheme for managers, through individual ‘output criteria which were supplemented by a range of other criteria including behaviour in relation to desired competencies and to corporate values. 2.6.2 Innovative HR Practice: Training Development Programmes In respect of adoption of high potential innovative training programmes among MNCs, the organisations were asked if both their UK and overseas operations had a management development programme specifically aimed at developing its ‘high potentials or senior management and employee potential. The data show that high potential programmes are adopted by 70% of organisations; 30% of organisations are not using them. Organisations were asked whether they used a global high potential programme that was adopted elsewhere worldwide, or a local, nationally specific programme. Most organisations indicated that their programmes are global in scope. 2.6.3 Innovative HR Practice: Appraisal Activities In comparison of performance appraisal practices and management values, the formal performance appraisal schemes for all three groups are very widespread; over nine out of ten firms have them for key group and managers, and over 80% have them for large occupational groups. Only 3% of firms have no formal appraisals at all. Just over a fifth of firms use ‘forced distributions for the results of appraisal. A clear majority of firms use the results of appraisal as the basis of decisions on redundancy and redeployment. 2.6.4 Innovative HR Practice: Employee Involvement Communication UK-based multinationals most commonly cite ‘setting a broad policy HR programme as being significant or very significant (62% and 66% for training and development and for employee involvement policy respectively). HR advice and consultancy is also relatively prominent for training and development policy (53% significant or very significant), but less so for employee involvement policy (33%). For training and development, and employee involvement, policy, the respective proportions reporting the other means of influence as significant or very significant are: setting detailed HR policies (32% and 31%); monitoring HR policy implementation (39% and 34%); and HR benchmarking and information exchange (42% and 28%). 2.6.5 Innovative HR Practice: Global Knowledge Sharing Diffusion In respect of innovative HR programmes which promote employee knowledge, learning and diffusion, international employee learning mechanisms are used extensively across all MNC both within the UK and across overseas operations. The survey focused on five formal organisational learning mechanisms used by managers that are international in their scope: International projects groups or task forces, which are often used to address specific issues; International formal committees; Secondments involving the placing of MNC employees in external organisations such as suppliers, customers, universities or private RD companies; Expatriate assignments The evidence showed that the most common organisational learning mechanism adopted among the managerial community within MNCs is the informal network (used by 84% of companies). International project groups/task forces also play a prominent role (used by 73% of organisations) and to a lesser degree expatriate assignments (used by 60% of organisations) and international formal committees (53% of organisations). In contrast, secondments are only adopted by around a quarter of the organisations (26%). The majority (82%) of organisations use two or more organisational learning mechanisms, with 53% adopting between three and four of the five organisational learning mechanisms among their managerial community. Around 9% fail to use any of the mechanisms listed. MNCs requiring integration between the UK operations and other sites worldwide are significantly more likely to adopt multiple organisational learning mechanisms (Tregaskis, Glover and Ferner, 2005). However, these national variatio ns show that the form that organisational learning and diffusion take is strongly shaped by the national context of the parent firm. 2.6.6 Innovative HR Practice: UK MNCs Use of Shared Services According to Edwards et al (2007), the findings from the study found that half of the UK MNCs operate shared services centres and have international HR policy formation bodies. They are far less likely, compared to US and other European MNCs, to have a worldwide approach to workforce management. UK firms consistently aim to pay a greater proportion of employees (managers, LOG and key group) in the top or 2nd quartile. Nine in ten UK firm have performance appraisal for their managers while seven in ten have formal appraisals for their LOG (Edwards et al 2007). Use of forced distribution is uncommon as is the use of 360-degree feedback. An overwhelming majority of UK MNCs tend to recognise trade unions for collective bargaining purposes. Formally designed teams and problem-solving groups are commonly found in UK MNCs as are a large number of communication mechanisms with meetings between line managers and employees, newsletters/emails and systematic use of the management chain the most commonly found communication mechanisms. Although the majority of UK MNCs have succession planning and formal management development programmes these tend to be comparatively less than other MNCs. 2.6.7 Use of Expatriates According to Edwards et al 2007, UK MNCs make considerably greater use of parent country expatriates than third country expatriates. This may reflect the short geographical proximity and cultural similarity between the UK and Ireland. UK MNCs tend to have considerable discretion over the various HR policy areas, much more than US firms. 2.6.8 IT Based Networks Services A key development in HR service provision over the past two decades has been the increased use of information technology (IT) (Edwards et al 2007). This is all the more relevant in MNCs, where IT systems may be used to monitor policy implementation and performance, and also to facilitate communications and networking, across borders. It thus provides an insight on the extent to which corporate management has access to HR data on its international operations and can compare performance on HR metrics across sites and countries. Specifically examined was the usage of IT based HR information systems (HRIS) and ‘shared services provision on an international level. In regard to the diffusion of HRIS, respondents were asked whether the worldwide company had an â€Å"HR Information System (such as PeopleSoft or SAP HR) that holds data relating to the firms international workforce†. The responses for both foreign and UK-owned MNCs showed that just over half (54 per cent) of all MNCs in the UK reported the use of HRIS that operates on an international basis. This is a similar to a study by Collings et al (2007), that found in the parallel UK study, where some 52 per cent used such a system (Edwards et al., 2007). However, among MNCs in the UK, a greater proportion of foreign-owned MNCs (56 percent) than UK-owned MNCs (44 per cent) reported the use of HRIS on an international basis (Edwards et al 2007). There were some discernable differences in regard to ownership. As indicated from the study, American firms were the highest users of HRIS (70 per cent), while the ‘rest of the world MNCs is the least likely. This again resonates with the UK findings where US MNCs were among the greatest users of HRIS and Japanese MNCs the lowest (Edwards et al, 2007). The impact of sector on the take-up of HRIS will be fully outlined and placed in the appendix in the forthcoming chapters. Among UK MNCs, the service sector accounted for the greatest number of firms with HRIS. However, among foreign-owned MNCs multi-sector firms were by far the largest users, followed by those in the service. 2.7 Previous Research: Human Resource Factors Previous studies have been utilized in exploring the current human resource innovative programmes that UK MNCs must take into account in their drive for global expansion. One of the main limitations of this review is that it is limited within the context of UK MNCs as there was the lack of evidence to determine the effects of these practices on MNCs operating in the context of both emerging and non-emerging economies. This is in consonance with Ericksen and Dyer (2005) and Wright et als., (2005), both of who also called for further empirical research from different contexts. Gerhart (2005) substantiate the question, to what extent are these innovative HR programmes valid for other context by saying: â€Å"This is a concern because it seems unlikely that one set of HR practices will work equally well no matter what context†. To shed more light on the issue and to further examine the relevance and effects of such programmes, it is important to conduct research in non-US / UK con text, (Katou Budhwar, 2007), especially in emerging economies. 2.8 HR Factors for Global Expansion: Effectiveness Previous research has explored the links between individual HR practices and corporate overall performance. For example, Lam and White (1998) reported that firms HR innovative programmes which are largely measured by the effective recruitment of employees, compensation programme, and extensive training and development were related to return on assets, growth in sales, and growth in stock values. Using a sample of manufacturing companies, multinational servicing companies and global financial institutions, Richard and Johnson (2001) examined the impact of strategic HRM effectiveness (ratings of how effectively a variety of HR practices were performed) on a number of performance variables. The findings suggested that implementation of innovative HR programmes had an effect on employee turnover and the overall performance of the company. 2.8.1 Recruitment Selection According to Terpstra and Rozelles (1993), who compared the relationship between recruiting / selection practices among US / UK MNCs and the firms performance, it was found that there was a strong connection in the companys performance between implementation of the new HR practices and the previous traditional practices, this was focused mainly on recruiting, selection and the use of formal selection procedures and firm performance. Cascio (1991) also states that the improved performances recorded after implementation of such new HR practices are generally substantial. 2.8.2 Employment Training Programmes Russel, Terborg and Powers (1985) in a survey of 30 US MNCs establish a link between the adoption of employment training programs and financial performance. The use of performance appraisals (Borman, 1991) and linking such appraisals with compensation has strongly been connected with the performance of a firm. (Gerhart Milkovich, 1990). Koch and McGrath (1996) reported that firms using more sophisticated staffing practices (planning, recruiting, and selection) had higher labour productivity. 2.8.3 Communication Employee Involvement Huselid (1995) reported that HR practices can influence firm performance through provision of organization structures that support involvement among employees and provides flexibility for improvement of job performance. Green et al (2006) states from findings of a survey that organizations that vertically aligned and horizontally integrated core human resource functions and practices performed better and produced more committed and satisfied HR function employees who exhibited improved individual and organizational performance. 2.8.4 Other Models Most of the work on innovative human resource programmes and the companys performance has been undertaken in the context of MNCs who consider the US and the UK as their home country. The question which arises, though, is whether the UK and US-oriented models are appropriate and representative in other contexts (see debate in special issue of the International Journal of Human Resource Management, 12(7), 2001). Other studies analyzed such as Harel and Tzafrir (1999) found that in parts of Asia and the middle-east, innovative HR practices were related to perceived organizational and market performance. Bae and Lawler (2000) did find a significant relationship between HR practices and firm performance in their sample of 140 manufacturing firms in Asia, covering china, Japan and South Korea. Lee and Miller (1999) also found a strong relationship between HR practices and performance among a number of MNCs in Asia, but it is clearly stated that this relationship was most strongly pronounce d among firms using dedicated positioning (marketing differentiation or innovative differentiation) strategies. Bae et al., (2003) in their study of HR strategy in Pacific Rim countries found that the evidence of a strong relationship was however based on strict high-performance work system with a number of variable conditions. Morishima (1998) found support for the contingency perspective in a sample of Japanese companies. Firms with well-integrated high-involvement work practices and firms with well-integrated practices consistent with more traditional Japanese employment strategies both did better than firms with poorly integrated practices. Bae et al (2003) in their investigation of Hong Kong multinational companies found an increase in the firms performance due to certain core innovative HR work practices (training and compensation techniques) with high involvement characteristics. 2.9 Implementation Whilst there are currently limited researches in respect of implementation of innovative HR programs in the context of UK MNCs, however, according to Briscoe and Schuler (2004), Implementation may vary in respect of ‘what and how, thus limiting the value of comparative survey research. Chew and Horowitz (2004) states that the subject of implementation should only be considered in the context of the specific MNC or firm involved, as there are lots of contextual factors and limitations in implementation hence the need to be cautious and dissuade any hasty conclusions when taking on findings from research journals on implementation. Horowitz (2004) states that primary research on implementation would need to focus on contingency approaches and mediating variables affecting the MNC level application. A number of theoretical approaches would also add to the importance of ‘context frameworks such as integration/divergence or universalism versus local particularism, and ethnocen tric, geocentric, regiocentric and polycentric managerial strategies (Chew et al 2004). The author believes that such an extensive approach would not only examine the relationship between human resource innovative practices and relevance, but would take into account the host environment. 2.9.1 Implementation Expansion: Formation of HR Strategies According to Briscoe et al (2004), very little work has been done on the formation of methods for implementing and controlling the transition from specific administration HR services unto innovative programmes that are directly linked to strategic challenges such as increasing revenue through new market entry or mergers and acquisitions. The formation of the UK MNCs corporate strategy has to take into account the balance between those activities that need to be centralized or standardized and the degree of flexibility required by the affiliate to operate in the host country Brock (2005). The formation of HR strategies is distinguishable by variance in terms of level of abstraction and scope. The level of abstraction refers to the level at which the HR strategy is focused. According to Combs et al. (2006), there are different levels of abstraction in the design of a global HR system. Levels vary from recommendations, policy, to operational-level procedures. With a policy-level of abstraction, affiliates are given the freedom to implement their own HR strategies within the broad parameters of the standardized policies. However, with an operational level of abstraction, affiliates are expected to implement a more detailed HR management practice. Scope refers to the extent of HR management practices dealt with in the HR strategy. For example, the HR strategy may have a