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Executive Summary

Introduction

Human resource department has become an integral and quite dispensable area of managerial

sciences these days. The conventional and traditional Human Resource Management theories are

not only tested worldwide, but now, a wide range of suggestive models have also emerged.

Through this paper, an attempt has been made to utilize the contemporary HR models for an HR

audit which would help draw a critical analysis of HR processes and strategies in a specific

company. Based on such analysis, a framework of recommendations has been made which

would further assist the organization in excelling. To serve the mentioned purpose, one of the big

four, ‘Deloitte’ has been selected for two reasons. Firstly, the company’s historical data and

future prospects were easily accessible online through the official traceable website. Secondly, it

has been planning to restructure and redesign its HRM facilities and strategies.

1. International Business Environment Analysis (Host Country: Myanmar)

According to a press release, a new firm would be established in Mayanmar, namely

‘Independent Correspondent Firm’ with the collaboration of local professional services in

Myanmar. Existing and new potential clients of Deloitte would then be able to and have an

access to all the Deloitte’s services (taxation, audit, accounting, consultancy, merger and

acquisitions, compliance, risk mitigation and financial advisory) effectively and efficiently in

Myanmar, through Myanmar Vogour Co. Ltd.

Currently, a number of regional forces have lifted sanctions in Myanmar and so, this would

lead to an overgrown interest towards investments in this particular region. Previously, a number
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of Deloitte clients had been looking forward to extending their business activities in Myanmar,

which would build the Myanmar’s economy equally.

According to Deloitte’s Regional Managing director, Myanmar is the place with a high

potential of tremendous growth. Clients would be able to consolidate and strengthen their market

share and leadership by acquiring the facilities provided by the Independent Correspondent Firm.

Special expertise from the local employee base of Deloitte would join hands with these clients to

work for good.

1.1 Pestle Analysis Model

In this section we are providing a Pestle analysis of Myanmar. Discussions in this section include

details regarding political scenarios, economic conditions, social framework, technological

changes, legally welcoming and environmental factors.

Starting from Political scenarios, it can be said that most first world regions have relaxed their

sanctions from Myanmar, including European Union and Australia. So, there is politically, no

harm in initiating new business in Myanmar. Secondly, the economic conditions are getting

better in the discussed region. The government is inclined towards making developmental

reforms and starting projects such as power, infrastructure etc. mostly, the services ssector

contributes to the GDP of this region. It has extensively usable natural resources, and

understanding, as well as hospitable and cooperative human capital. Plus, new vendors and

investors are invited to join the development regime, by the local government. It is also

welcoming technological adaptations and so, legal regulations would somehow not be headachy
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stuff for the new entrants in the economy. The environmental conditions are moderate enough to

easily help the expatriates understand the surroundings.

As far as Deloitte and its audit services are concerned, all new ventures, companies, SMEs and

technological companies would require consultancy services, audit and taxation regulatory

advisory. Therefore, Deloitte would have broad space and room as well as scope to extend its

business there.

1.2 Company Profile

Deloitte has been chosen as the organization on which I have performed the HR audit.

Deloitte is a multinational company. It is incorporated in United Kingdom and currently planning

to extend its operations in Myanmar. In the financial year 2016, Deloitte has reported an income

of $17 billion in United States. It has somewhere around 150 years of experience in the tax and

audit industry and so, has employed approximately 250,000 employees. According to the clients,

it is the most reliable and trustworthy place when it comes to affairs related to accounts and

taxation. For some years, it has also been trying to excel in financial advisory and compliance

consultancy fields. The company has broad vision and missions and so they have accordingly

designed their man power strategy which promises a culture of change ("Deloitte | Audit,

Consulting, Financial Advisory, Risk Management & Tax services and reports | Global,"

2017)

1.3 Issues and HRM Strategy

1.3.1 National
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According to Deloitte, Sanctions are a great issue that a financial services firm such as Deloitte

itself this would likely face in the global market in the near future. However, the idea and

existence of these sanctions are a fact for modern business these days, as much as for the global

economy. The bar for sanctions compliance is increasing rapidly with the elevation in

complexity, competition, regulatory rigor and instability in the nature of international affairs.

https://www2.deloitte.com/content/dam/Deloitte/ru/Documents/financial-

services/Facing%20the%20sanctions%20challenge%20in%20financial%20services.pdf

1.3.2 Organizational

1.3.3 Cultural

As far as cultural challenges are concerned, the main issue is to initiate change. Adapting to

change and spreading the culture of adapting change can be challenging in some regions. For

Deloitte, creativity, innovation, convenience and stability, are all mandatory business drivers,

which distinguish them from rest of the world. And so, Deloitte can’t compromise on these.

Therefore, it could be a challenging issue for Deloitte in Myanmar. Same is seconded by the

Senior Manager of Deloitte, Mr Adrian.

2. HRM Theories, Models & Economic Drivers

2.1 Recruitment Process

2.1.1 Recruitment Strategies/Selection Methods

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According to Deloitte, their recruitment process is a good opportunity for candidates to discover

more about the company. Their recruitment and selection process consists of a number of steps

mentioned in a list below. During the whole process and each phase, Deloitte encourages that

candidates come up with more and more questions and explore about their upcoming lives at

Deloitte. The phases include:

1. Initial Screening

2. Assessment

3. Interview

4. Final Assessment

When a candidate submits an online application, it is usually reviewed by a number of

responsible heads joined together and working towards the next step – Assessments. The

authorized recruitment team matches whether the candidate’s skills, previous job experience,

qualifications and attitude match with the job role. During this step, one of the team members

might find it suitable to conduct a telephone interview, availability, linguistic skills, depending

upon the nature of the job. This digital screening can be a lengthy process and usually has a good

number of candidates in the testing pool.

Once the initial screening is over, online or written/oral assessments maybe conducted. These

assessments are meant to test one’s intelligence, logical reasoning power, and content

knowledge.

The team now has its input ready for the interview process. Most important consideration over

here is the interviewing panel and the bargaining team. Not only do they test a candidate’s
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attitude, problem solving skills, behavior in different scenarios, but also examine whether he/she

would be able to handle stress at the workplace.

The next stage is a more thorough phase – the final assessment. Detailed and in-depth

discussions of the job role would take place, earliest availability, days off, salaries might be

decided at the very stage, but most importantly, the panel analyses a candidate’s group working,

team-building, critical thinking and presentation skills and examines whether he is ready to take

up the client’s business challenges head up.

2.1.2 Selection Method 1 & Rodger Seven Point Plan (1952)

The recruitment and selection process is comprehensively described in the previous section. In

this section, an attempt has been made to correlate the recruitment process with the Rodger’s

Seven Points Plan model (1952). In this plan, the physical make-up of the candidate is examined.

Secondly, when the initial screening is done the next point, the attainments point is tested.

According to the model, in this phase a candidate’s education, experience and achievements are

assessed. Then, when it’s the part of assessments and final assessment, the thirs point –

intelligence and fourth point – Special Aptitudes come into play. The sixth point which is

disposition, is tested through the case studies, scenarios and interview where it is discovered how

mature, active, and compassionate a candidate is.

Figure : Rodger Seven Point Plan Model

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Source: Beardwell and Claydon, 2010

2.1.3 Selection Method 2 & Fraser’s Fivefold Grading (1954)

Figure: Fraser’s Fivefold Grading

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Source: Beardwell and Claydon, 2010

2.1.4 Selection Method 3 & Beardwell & Claydon

3. Effectiveness of HRM Strategies & Employees

3.1 Commitment

According to Deloitte, everything that usually is a part and parcel of today’s diversified and

modern workplace, influences an employees work commitment. Therefore, organizations these

days, should be more and more careful about increasing their employee base’s commitment

towards the flag they are working under. Most of the HRM policies and strategies are designed

with the purpose of increasing the said commitment and employee morale and interest towards.

This is yet, another definition of an organization’s productivity.

3.2 Flexibility

The ‘mobile’ workforce these days is more demanding in terms of flexibility, rigor, appreciation,

employer’s understanding and most importantly, they demand an ‘employee centric work

environment’ where they are given liberty to make decisions, use their efficient rule of thumb for

certain activities and be integral to the organization.

3.3 Quality & Strategic Integration

3.4 Reward System Management

Incentives, micro-loans, insurance offers, training programs, study support, child cover and

dependent care are few from the list of compensatory programs modern organizations usually
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offer. Deloitte is one of those modern multinational organizations, and offers a wide range of

other than salary benefits to its employee base. According to Deloitte, these programs, especially

non-compensatory, add value to the organization since they boost employee confidence, loyalty

and ultimately improve their productivity, adding on the organization’s margins.

At Deloitte, recognition programs are not only made, but are continually evaluated so they are

best at judging which employees deserve the recognition and appreciation. Though recognition is

a non-financial compensation, it is highly effective and influential on the attitudes of employees.

These programs not only boost employee confidence and loyalty, but also increase employee

engagement and improve their performance in their jobs. Recognition programs also have

quantifiable impacts on the company’s performance, since they enhance the productivity. One

research states that if 15% increase in employee engagement can in turn increase the margins by

2%. Thus, according to Deloitte, recognition is one of the top three non-monetary compensation

efforts that help retain employees (Deloitte, 2018a).

4. Different Approaches in HRM Globally & Reasons

There are usually three factors which become the driving forces of employee engagement. Over

here, employee engagement has been given substantial value because we have previously

discussed that employee engagement and specially when it is gainful, is indispensable for the

organization as well.

Many reasons stand out for using multiple HR strategies. Many organizations promote diversity

and no-discrimination policy. In simple words, they try to become equal opportunity employer so

that more and more experienced and talented workforce is attracted towards them.
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Then, organizations also attract new candidates with technological and other special soft skills to

be at a competitive edge and derive competitive advantage out of these. This is done because

digitization is now a need and a must0have for every organization.

To serve all these purposes all together, MNCs like deloitte offer a number of financial and non-

financial benefits and reward recognition programs which are in-depth discussed in the

upcoming relevant sections.

4.1 Importance of Training

Learning and development facilities, along with in-house training opportunities are nowadays,

considered to be a extra perk at work by employees. These chances to personally and

professionally groom and grow in an organization favor the organization by building employee

confidence. They start considering the fact that their organization is ready to invest in them and

so, they develop a higher sense of job security and loyalty.

Deloitte provides free-of-cost professional learning benefits to its employees. The credit hours

criterion is acceptable at most of the major institutes. Even if employees want to invest their

potential in other professional qualifications, Deloitte provides them measures and methods for

seeking resources depending upon the case. Other than that Deloitte provides the following

opportunities for further learning and development:

1. Technical Learning (internal processes and procedures) – using online and soft resources

to start handling clients’ issues technically.

2. Mentoring programs (24*7 on-the-job excellence programs) – help one develop

knowledge of new challenges and how to tackle them.

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4.2 Development Frameworks

A number of organizations these days have realized how important it is to help employees learn

and grow, in order to retain them and improve their productivity at work. At Deloitte, there are

Chief Learning officers which are hired to especially redesign and remodel the training needs on

individual basis, and to enhance the employee morale through right leadership and mentoring

mix. We also find job titles like ‘Chief Employee Listening Officer’ showing how integral

learning and development have become for an organization.

4.3 Expatriate Cross-cultural Training

5. HRM & Organizational Performance

5.1 Employee Participation Theory

5.2 Importance of Participation

6. Theory, Implications, and Performance Management

6.1 Reward System Theory

6.2 Implications

6.3 Performance Management

6.5 Performance Appraisal

7. International Business & Employees

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Management Skills (Discuss with respect to HRM global theories and models studied

above)

Conclusion

Recommendations

Bibliography

Appendices

Company Profile

The New Business Venture in Myanmar

Training, Learning and Development

Employee Participation Theory

Recommendations

We can provide the following framework of recommendations based on the HR audit and

analysis completed:

1. Learning and Development: periodic coaching session should be held. These intervals

could be monthly, quarterly, bi-annually or as per the performance requirement. After the
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sessions, a complete feedback should be taken, and through some determinants an effort

should be made to assess the improvement or difference created through the training.

2. Performance Management and Appraisal: proper performance management strategies

should be made in order to make the partial ones workable completely. Loopholes need

be revisited and further refined. Most importantly, certain standards and targets should be

set out in the beginning of working periods and through a variance analysis, it could be

checked whether targets were fully met or not.

3. Employee Participation and Engagement: some decision-making power should be given

to the employees in order to keep them habitually inquisitive and gainfully engaged.

They’ll only take interest and participate effectively once they know their contribution is

material to the organization. In order to increase employee participation, new supervising

positions could be designed so that they have a sense they are promoted vertically as

well. Delegating responsibilities to provide more practical exposure is also a workable

idea in setting like Deloitte.

References

Beardwell, J. and Claydon, T. (2010). Human resource management. 6th ed. New York, NY: Pearson

Financial Times/Prentice Hall, p.169.