Paper It Properly Consultancy Report Business Essay

Paper-it-Properly wants to open a new fabrication works in Switzerland. This consultancy study gives an penetration into the different facets of the HR position of traveling into the new state and the feasibleness of making so. Merely a few of the cardinal points like political and societal tendencies, demographic composing, cultural differences, the statute law in the state and the educational and skill degrees are considered as this study has to be merely added to antecedently gathered information.

Switzerland is geographically placed in the center of Europe and surrounded by land on all sides. It is the most impersonal state in Europe and hence has maintained political stableness over the old ages ( BBC intelligence, 2011 ) . The capital of Switzerland is Bern and Zurich is the largest metropolis in the state. German, Romansch, Italian and Gallic are all the national and official linguistic communications along with few other linguistic communications like Spanish, Albanian, English and Serbo-Croatian ( CIA Factbook, 2011 ) . CIA Factbook ( 2011 ) states that 41.8 % of population follows the Roman Catholic faith while the other faiths that are besides followed in the state are Protestant, Muslim and others.

Political and Social Trends in Switzerland:

Switzerland is known to be a officially impersonal state since a really long clip ( BBC intelligence, 2011 ) . Swiss Confederation, as it its formal name, consists of 26 Guangzhous ( fundamentally provinces ) and have their ain authoritiess and parliament with a little more freedom as compared to other states ( The Swiss Confederation Brief Guide, 2010 ) . Peoples have a direct say in their issues, which is uncomparable to any other state because the authorities gives them the authorization to suggest statute laws and convey constitutional alterations through referendums ( Swissinfo a, 2007 ) . Fluckiger ( 1998 ) mentioned the same thing in his article, which implies the political stableness in the state over the old ages. In fact Swiss political relations stands out for its stableness in the universe and there has been small alteration in it since the first clip the parliament was formed in 1919 ( Swissinfo B, 2010 ) . Fluckiger besides noted that the merely 27 % of the work force is associated with trade brotherhoods in this state and there is no cardinal individual trade brotherhood group in being here. This is an advantage as it consequences in lesser figure of strong protests. The state has kept diplomatic dealingss with most of the states and served as a impersonal mediator for international conferences ( Bureau of European and Eurasian Affairs, 2010 ) [ 5 ] . Switzerland is non yet a portion of the EU but has permitted skilled and unskilled workers from other EU states for employment ( BBC intelligence, 2011 ) . This is an advantage for the industry.

Switzerland is said to hold the most stable, booming economic system along with extremely skilled labor, low unemployment rate and per capita GDP, which is one of the highest in the universe ( CIA Factbook, 2011 ) . The current per capita GDP of the state is $ 42,900, which is stated to be 16th in the universe and the GDP growing rate in 2010 is 2.7 % ( CIA Factbook, 2011 ) . This clearly indicates the high economic criterion of life.

[ Adapted ] Figure [ a ] Gross Domestic Product in the Last Quarter Half of 2010. [ Online ] SECO. Available at hypertext transfer protocol: // lang=en [ accessed on 4th May,2011 ]

The tabular array illustrates the GDP growing over the last five old ages. It can be seen from the graph how drastically recession affected the state ‘s GDP growing rate. The lone dip in the rate is in the twelvemonth 2008, which the state seems to hold recovered from every bit shortly as the 3rd one-fourth of 2009. This shows the economic strength of Switzerland. Exports and foreign trade make maximal part to the states GDP ( Swissworld, 2010 ) . Quayle ( 2001 ) suggested that over half of GDP comes from foreign trade and more than one tierce of domestic demands are met by imports.

[ Adapted ] Figure [ B ] Kindersley, D. 2004 The Financial Times World Desk Reference [ online ] Availaible at hypertext transfer protocol: // [ accessed on 4th May 2011 ] .

The offense rates in Switzerland are comparatively low when compared to other states over the universe. Larcenies seem to be the lone outstanding signifier of offense from the chart ( The Financial Times World Desk Reference, 2004 ) . Nicati and Daams ( 2006 ) during their survey noticed that due to globalization enterprisers are exposed to jurisprudence interrupting state of affairss that lead to corruptness in the host state, which is a offense. Besides, money laundering is one of the biggest offenses in Switzerland due to its banking sector secretiveness policies. However the state is set abouting steps to undertake the issues.

Merely 6.9 % of the entire population of Switzerland lives below the poorness line ( CIA Factbook, 2010 ) . The quality of life is high in Switzerland and this scenario is changeless over clip and hence can function as a good testing market for new concerns ( Bureau of European and Eurasian Affairs, 2010 ) . In fact an article in TIME by Bachmann ( 2002 ) mentioned that it is difficult to happen statistics on poorness in Switzerland. Stephane Fleury, at Federal Statistical Office, has admitted that colleting informations about the poorness degree has non been a tradition in the state. The article besides mentions that the entry of immigrants and the recession can be major grounds for the lifting poorness in Switzerland. Any individual individual household gaining less than 2200 francs per month or 4600 francs for family with 2 kids was the official poorness line ( Swissworld a, 2010 ) .

Cultural Differences:

Organizational civilization is said to be “ a form of basic assumptions” ( Schein, 1984 cited in Nazari et Al, 2011 ) . Storey and Legge ( 1995, cited in Redman and Wilkinson, 2009 ) have mentioned that organizational civilization is developed chiefly due to the human resource direction patterns been implemented. Hofstede ‘s ( 1991, cited in Redman and Wilkinson, 2009 ) research suggests that people from different states have different attitude towards managing issues that besides influences the organizational civilization.

The concern civilization in UK and Switzerland seem to be wholly different. In Switzerland, people look for security of occupation whereas in UK people believe in turning by working for more than one employer. Pre-planning and involuntariness to face hazard is characteristic to Swiss civilization while UK appreciates the accomplishment to undertake unexpected hazards. The concern is hierarchal in UK and the board of managers hold a batch of power while it is really decentralised in Swiss civilization. This Swiss civilization can be said to hold its roots in the broad authorities of the state and besides the fact that most of the administrations are little here. In UK, direction accomplishments and practical experiences are preferred over the proficient ability of the director. This is wholly opposite in Switzerland, where proficient abilities and academic makings are more of import than the general position. Meetings in Switzerland are formal and follow the pre-decided dockets and in UK they are more like arguments with dockets slackly set. This illustrates the difference in the determination devising procedure. Both the states take good advantage of the fringe benefits of squad working. However Swiss concern civilization allows an single to execute undertakings without any intervention or supervising and use one ‘s expertness while UK prefers treatment on issues and assisting the squad members within the squad. ( World Business Culture, 2011 )

Although this information pertains more to the direction degree, it gives a better penetration into the civilization differences to be considered. Besides like mentioned earlier the direction drives the civilization in the administration. The cultural differences indicate the jobs that can be faced while covering with the labour force.

Demographic Composition:

The entire population of Switzerland is 7.6 million and 4.62 million of this is into the labour force ( CIA Factbook, 2011 ) . European Commission ( 2005 ) stated that there is a diminution in the population addition and that most of the Europe has to contend it in the immediate old ages. Switzerland is no exclusion to it with a population growing rate of merely 0.21 % noted in 2010 ( CIA Factbook, 2011 ) . This has brought drastic alterations to the demographic tendencies. Dixon ( 2003 ) had stated that there will be an addition in older working population and major alterations in employment tendencies which affect the facets of labour market like accomplishments, rewards etc. The employed population rate between the age 55-64 is 68.4 % and that is more than the employed population rate between the age 15-24, 62.4 % ( OECD Factbook, 2010 ) . Although there are no exact statistics, but there is grounds that adult females in developed states have started come ining the labor force, which brings major difference to working population ( Lucas et al, 2006 ) . Women engagement in labour force has increased from 51 % in 1960 to 58 % in 1990 ( Fluckiger, 1998 ) . The unemployment rate in Switzerland in the twelvemonth 2010 is 3.9 % , which has somewhat risen from 3.7 % in 2009 ( CIA Factbook, 2011 ) . There has been slow but steady addition in the rate of unemployment in the state chiefly because of the recession. However other factors like in-migration besides play an of import function in it ( Fluckiger, 1998 ) . The net migration rate for the state in 2010 was 1.29 migrants/ 1000 population, which is 48th as compared to other states in the universe ( CIA Factbook, 2010 ) . McGovern ( 2007 ) noted that the biggest fright from in-migration seems to be its consequence on rewards even when it has small consequence on it. In fact he said that immigrants are paid lesser than the locals. This can be an advantage for a new industry as inexpensive labor would be available. The major cultural groups in Switzerland and their distributions are besides mentioned in the CIA Factbook. The state consists of 65 % German, 18 % Gallic, 10 % Italian, 1 % Romansch and 6 % of others.

Employment Legislation:

As mentioned earlier besides, the labor market seems to hold broad or decentralized statute law. The state besides seems politically stable humor rare happening of work stoppages. However there are a few labour Torahs incorporated in the fundamental law.

The power of doing labour Torahs is with the Confederation. It caters to many labour issues like favoritism, protection of labors, dealingss of worker and employers. The federal statute law is the chief beginning of statute law and the employment contract effectual from 1911, consists of Humanistic disciplines. 316-392 of Code of Obligations ( CO ) . With these duties the Swiss Constitution protects employers against all kinds of favoritism on evidences of ethnicity, linguistic communication, age, sex, disablements and many others. Basically there are no particular statute laws for these cardinal rights of the labor. Any employee, who faces favoritism, is apt to compensation since the employment contract is breached. If the dismissal proves to be an allegation than the compensation is reversible. ( ILO, 2007 )

However favoritism on the evidences of gender is given particular protection in the statute law. The Federal Act of Gender Equality ( Gender Equality Act ) was added on 24th March 1995. The act was implied to all employment dealingss included in the public jurisprudence and the Swiss Code of Obligations. The jurisprudence prohibited any signifier of favoritism on the evidences of sex either direct or indirect on the footing of the employee ‘s matrimonial position or their household state of affairs or, for female employees, on gestation. This prohibition has to be taken attention of at every degree of HR patterns like enlisting and choice, rewards, preparation, publicity and dismissal and even the on the job conditions setup. Any hassling behavior impacting self-respect of the employee, assuring advantages or exercising force per unit area to acquire favors is besides considered as favoritism. It is the employee ‘s right under this jurisprudence, to use to disposal, for an order to halt the menaces of favoritism, or discontinue the bing 1 ‘s, confirm the favoritism if it has a continual troublesome consequence or inquire for any salary due. ( Classified Compilation of Federal Legislation, 2011 )

This proves that the labour force is good protected by the fundamental law and the company should be careful of this fact.

Education and Skill Levels:

Although instruction is said to be the most basic portion of human capital, the importance of out-of-job and on the occupation preparation that gives practical cognition and adds to the accomplishments of an employee should besides be considered ( Marelli and Marcello, 2010 ) . Switzerland has really small natural resources due to which it depends on the learning ability for development and hence has a really high criterion of instruction ( Swissworld B, 2011 ) . The literacy rate in Switzerland is 99 % ( CIA, Factbook, 2011 ) .

The OECD Factbook references that educational attainment is fundamentally the accomplishments in the labour force and the population. The definition is given as “the highest degree of instruction completed by each individual, shown as the per centum of all individuals in that age group” . OECD has noted the instruction attained for the different age groups, in the twelvemonth 2007. The age group 25-64 holding instruction below upper secondary is 14.6 % , upper secondary and post-secondary non-tertiary is 55.5 % and Tertiary is 29.9 % . ( OECD Factbook 2010 ) [ 20 ]

Fluckiger ( 1998 ) has mentioned that the instruction system in Switzerland allows less accent on theory and more on pattern, which consequences in many non-university higher degree preparation constitutions. This consequences in addition in extremely skilled labor force. He besides noted that bulk of immature people start working because of the apprenticeship system. Highly skilled labor is said to be characteristic to the Switzerland ‘s labour force ( CIA Factbook, 2011 ) . The different profession in which the population is involved gives a little image of the labor accomplishments and tendencies in the state. While merely 4 % of population is involved with agribusiness and forestry and 23.5 % is involved in Industry and Construction, upper limit of the work force, that is 72.5 % is into Services sector and authorities ( Bureau of European and Eurasian Affairs, 2010 ) . This clearly indicates that labour force is characteristic of extremely skilled labor.


The grounds collected and research done aid in coming to a decision about the enlargement of the fabrication works in Switzerland. The state is politically stable since the initiation of the Confederation and it can be safely predicted that there shall be no turbulence in it in the close hereafter, which is favorable. The industry can be assured of no political intervention or alterations in policy or increased unionism. The GDP growing illustrates the economic strength of the state and how the economic system has bounced back despite the recession. This once more is a favorable for the industry as it indicates low rising prices hazards. The offense rates are low except for the banking sector, which due to its secrecy policies facilitates money laundering but this does non impact the paper industry. However it is mentioned by Swissworld degree Celsius ( 2011 ) , that banking sector influences the employment in other sectors straight or indirectly.

The population below poorness degree and the unemployment rate both are low for Switzerland. This points to the fact that inexpensive labor will non be easy available in the state. This is a immense disadvantage for the paper industry, since it requires more of working labor in the fabrication works. However the increasing migrators may alter this tendency in the labour force of Switzerland and can be beginning of labor for the works. Besides the free traveling migratory workers from the other EU states can be of aid.