Reference no: EM133045161

With the exponential increase in the use of digital gadgets over the last decade, this has led to the discard of huge amounts of precious metals from these gadgets and devices being disposed after wear and tear. The recovery and recycling of these precious metals, such as platinum, palladium and rhodium has gradually gained interest amongst green companies globally. Good Metallic, a US headquartered company which started 8 years ago, is poised to become one of the leading precious metal recycling company in the Americas and Europe. 

Good Metallic is looking to set up a research and development in Asia to better understand the precious metal scraps in this region. The aim is to introduce its recycling technology to smaller recycling companies in Asia. This is also in line with the green environment and sustainability agenda that many Asian countries are trying to achieve. Good Metallic has invested heavily in research and has proprietary cutting edge recycling technology which allows operation at an efficient cost. This technology provides Good Metallic competitive advantage over other recycling companies in Asia. 

Good Metallic's management has recently concluded their strategic planning for the next 3 years with an expansion plan into Asia Pacific region. It is considering setting up its research centre with a laboratory facility in Singapore and production facilities in Indonesia, China and Australia where some of the major mining operations take place. Good Metallic is currently gathering information and preparing to submit a proposal to put in place the business strategy, overall human resource strategy and the compensation strategy for its expansion plan into Asia Pacific. 

The overview of the 3-year expansion plan in to Asia Pacific region includes the following key points: 

• To be one of the leading companies in Asia Pacific in the recovery and recycling of precious metals globally. 
• To diversify its business portfolio by region and market segmentation. 
• To contribute to the reduction of natural energy wastage and to enhance green and renewable energy in the long term for the global good. 
• To grow from existing 600 employees across Americas and Europe to another 200 in Asia Pacific in the next 3 years 
• To invest in competency and leadership development for high performing talents to take on leadership roles in new markets The overall human resource strategy for Good Metallic is to align to the following principles: 
• Emphasise on cost-effective technology and methods in both business operation and managing human resources 
• Attract and retain talents with the right skills with innovative and entrepreneurial mindset base on market competitive compensation and benefits 
• Practice fairness in recognition of contributions with clear and quantifiable performance measurements
  • Believe in group performance and achieving company-wide goals
• Believe in leadership renewal with opportunities of growth and development given to young high performers 
• Implement strict performance improvement plans with average performers and practice termination of employment for those who do not meet improvement standards over time 

Good Metallic has engaged you, a HR management consultant, to assist them to prepare a preliminary HR management strategy and broad compensation strategy and structure. Approach the following questions as recommendations and advisory to Good Metallic. 

1 (a) Discuss the business strategy that Good Metallic is adopting with reference to its competitive advantage.

1 (b) Recommend THREE (3) compensation objectives as part of the compensation strategy in the Pay Model concept. Explain in your recommendations how the compensation objectives are aligned to the business strategy and human resource strategy. 

1 (c) Recommend the pay level and pay mix strategies in the compensation strategy that will be aligned to the overall business strategy.           

1 (d) Recommend THREE (3) common compensation components that should be considered in the international compensation package for employees transferring from US and Europe to the new offices in the Asia Pacific region. 

NOTE:

Kindly do NOT provide answers in point forms

Cite any reference used for your answers

REFERENCE: Gerhart, B., & Newman, J. M. (2020). Compensation (13th ed.). McGraw-Hill.