Contemporary Issues in HRM for Business Expansion

This report discusses the contemporary issues in HRM for business expansion and the impact of culture on HR practices. It explores the Hofstede cultural dimensions and their relevance in China, Vietnam, and Ethiopia. The report provides insights into employee relations, management training, and employee mobility in these countries.

HR-related issues

CONTENTS
Inroduction.................................................................................2
Main body..................................................................................2
Conclusion...............................................................................11
Recommendation.....................................................................11
REEFRENCES........................................................................12

INRODUCTION
Issues related to HR practices creates major hurdles in the management of a firm. Human
resource management includes different practices as Job design, performance management,
training and development, employment legislations and so on (Alemayehu and Woldemariam,
2020). One major responsibility of this department is to manage and develop a positive
environment at workplace which provide growth opportunity to a firm. This report is based on
Springline Ltd which belongs to British shoe-making industry and lead as a well-known
organisation. This report is going to determine contemporary issues in HRM at the time when
organisation is going to decide for the expansion from Northampton to China, Vietnam or
Ethiopia. Thus, this will be going to cover an explanation of the culture of these three countries
based on Hofstede cultural dimension.
MAIN BODY
For an organisation, it is required to evaluate the growth opportunities with the help of
business expansion. This report determines the approaches of Springline Ltd which run its
business in Northampton. Now the organisation wants to expand its business in new country thus
they are looking for a new option between China, Vietnam or Ethiopia. In this situation,
Hofstede culture model will assist them in exploring the culture of different countries. The
analysis of such are also based on some of the practices as employee relations, management
training, employee mobility and so on. Employee Relations refers the bonding of employee and
employer with each other in a company and how they behave with each other. This includes a
maintenance of a healthy and a positive environment within the boundaries. On the other side,
Mobility refers to the ease of access. The concept is discussing in relation to the employees or
the labours in the economy. It means the movement of the labours from one location to another.
This can be either a geographical mobility or an occupational.
The Hofstede Cultural Dimension shows the analysis of multi-ethnic culture interaction.
This theory shows the impact of the culture on its employees and how they indulge this in their
behaviour (Dahlbom and et.al., 2019). The analysis gives grades and differentiation level and

studies its concept. It is basically a comparison of one country with another based on the grounds
of their domestic culture where the organization works internationally.
The concept is supported by few dimensions which all are its base for the differentiation
and similarity. These are Power Distance, Individualism or Collectivism, Masculinity or
Femininity, Uncertainty Avoidance, Long term or Short term orientation and Restraint or
Indulgence dimension. These all are having their different notions which varies from one
another. Each of the dimensions are discussed below:
Power Distance: This dimension explains the level of the power which every employee
possesses in the society. It can be a high power or a low power person. The basis of the issue in
this category is that how society people holds the disparity among themselves (Jiru, and Tadesse,
2019). The people who are having a less power wishes to balance their power for getting equal
opportunities.
Cross-culture
Comparison
China Vietnam Ethiopia
Power Distance China is a
country that belongs
to power distance
culture as the PDI of
China is 80 which
means inequality
among people are
unacceptable there. In
the context of
business, china is
restricted where it is
common to be
obsequious with
those who are at the
high position (Kayl
In the context of
power Vietnam
scores high because
people of the country
accept a hierarchical
order which
determine that
everybody has a
place in justified
manner. These kind
of practices promote
leadership and
management which
would be beneficial
for a firm that wants
The power
distance index in
Ethiopia is high. It
promotes a work
culture in which
individual who are on
high position can
render order to their
subordinates. In
context of business,
employee needs to
accept rather than
challenge the ideas of
their superiors who
are more powerful

and et.al., 2017).
Thus, it can say that
in Chinese business,
the work practices are
classified on the
bases of large power
distance. Employees
in China works in a
terrible working
environment similar
to the time during an
Industrial Revolution.
They do not have a
healthy employment
laws in support of the
employees. The
country generally
faces frequent
migration of
employees with an
inflated employee
turnover ratio.
to enter in Vietnam.
Employees in
Vietnam works in a
healthy condition as
they have a better
communication
process with their
respective
managements in an
organization. They
focuses much on
problem solving
instead of the
disputes.
than them. Thus in
the organisation,
there are less
employee relation
and engagement. In
the country the
relation is being
governed by “The
Ethiopian Labour
Proclamation
377/2003
(Maheshwari and
Vohra, 2015). The
law brings a
responsibility on the
shoulders of
employers to deliver
the work to the
employees, the salary
on time and treat
them with a majesty.
It provides various
benefits to females in
regards to maternity
leaves and other
concerned matters.
Uncertainty Avoidance: The second dimension discuss about the level of restlessness
which society feels when facing uncertainty or any contingency. And also analysis its effect on
governance for the same (Mehralian and et.al., 2016). The base issue in this context is facing any

pre-recognized happenings and making changes according to it. Nation which is having high
level of uncertainty avoidance is basically of rigid nature and are not willing to accept any
change. Whereas nations who are having low uncertainty avoidance people are happier and are
willing to accept any changes in need. These people have less rules and laws in governing them.
Cross-culture
Comparison
China Vietnam Ethiopia
Uncertainty
avoidance
China has a low
uncertainty
avoidance. Major
reason behind this is
strong culture
acceptance thus there
might be no one
strongly punished for
breaking a law but
there a cultural aspect
that people tends to
obey the rules and
law. In context of
business, the culture
of china promotes to
guide employees
rather than taking any
action against them.
The
preference of
Vietnam is for
avoiding uncertainty.
The low uncertainty
avoidance index
maintains a relaxed
attitude in which
learning counts more
than the principles.
these kind of culture
promotes a positive
culture in which
individual can more
easily tolerated the
norms (Moskalenko,
2018). UAI is also
helpful for those
organisations that
wants to enter in the
new country as
Vietnam.
Ethiopia prefer to
avoiding the
uncertainty in the
business case
scenario. These kind
of approaches are
beneficial for those
businesses who
believes in lenient
business environment
in which individual
can represent their
ideas and thoughts in
front of management.

Individualism or collectivism: This dimension concerns about the vision and mission or
the people whether it is an individual mission focusing only on themselves or are having a
collective mission with same motive possessing the feeling of We instead of feeling only I. I here
mean that people are self-centred and are only focused to attain their personal desire (Naguib and
et.al., 2019). In the contrary people with the mission are worry about attaining the mission of all
the people collectively or jointly.
Cross-culture
Comparison
China Vietnam Ethiopia
Individualism China is basically
described as
collectivist society
because of major
differences in the
culture. Thus, at the
time of interacting
with others, Chinese
prefer a structure and
appropriate hierarchy.
In the context of
business, china
prefers and favour
group above the
individual thus the
behaviour of china
encouraged
collectivism as a
performer as a
business body.
Vietnam supports
collectivism society
which means it
promotes a close
long-term
commitment over the
group business. Thus,
in the context of
business Vietnam
promotes group ideas
and their work. Thus
this type of culture
helps in building a
positive employee
relation towards their
team and group.
These kind of
practices will help an
organisation to get
skilled workforce that
provide productive
outcomes.
Ethiopia promotes
collectivism as a
work culture or a
country culture. In
this situation,
management training
plays an essential role
in order to make a
group of individuals
to promote
collectivism. Thus, it
would be beneficial
for the new
organisation that
wants business
expansion in the
Ethiopia.

Masculinity or Femininity: Masculinity here refers to having bold courage, leadership
which a male person possess for achieving a goal. This is desirable in the society. Whereas
Femininity gender refers to the qualities of coordinating fairness, cornered for the sick and the
standard of the existence (Nguyen and Chang, 2017). These qualities are less considered or are
neglected by the society. This concept is also taken as a comparison between stronger and a soft
hearted quality person.
Cross-culture
Comparison
China Vietnam Ethiopia
Masculinity One specific thing
that does not related
to the others tradition
in the china is to
favour masculinity
over the feminism.
As in China, many of
the women are
working and running
business which is
opposed to the
mentality to only
support men over the
women. Thus, the
employee relations
also promote both the
women and men to
work with the same
responsibilities.
Vietnam considered a
Feminine society
where the work
culture denotes
working in order to
live. According to
this, the business can
strive for consensus,
solidarity as well as
quality working. This
type of culture helps
in resolving the
issues on the basis of
negotiation and
compromise. These
kind of approaches
helps in managing a
positive employee
relation at workplace.
The culture of
Ethiopia promotes
masculinity which
determine a strong
approach in business
to live a longer
duration. These kind
of culture promotes
practical mentality.

Long term or Short Term Orientation: It is related to the time dimension which is of
two types that is long term and short term. Long term society people are those who prefers on
succession and plays a long race whereas, short terms are for small period and are not interested
in playing long. Long term people plans things for their future but short term does not. They
majorly focus on achieving their short term goals and are happy with that instead of concerning
about many years.
Cross-culture
Comparison
China Vietnam Ethiopia
Long Term
Orientation
China
typically have a long
term orientation
which means they
think for long term
sustainability and
practices over the
short term goals.
Thus, for business
China promotes long
term suitability in the
competitive market
thus they support
such business models
specifically (Thakur,
and Bansal, 2015).
Thus it can say that
china has longer term
perspective rather
than other countries.
China is at its top in
relation to the
movement of labours.
Vietnam have a
pragmatic culture in
which people believe
that truth is highly
depends on the
situation. It shown an
ability to adopt
traditions in more
easy manner in order
to change the
condition. It helps to
build a strong
propensity in order to
effectively save as
well as invest which
is beneficial for
business firm.
Labours from
Vietnam migrates to
another country in a
big ratio in order to
increase their lifestyle
and earn more money
Ethiopia believes in
long term orientation.
That determines
effective business
solutions for those
who wants to sustain
in the market for a
long duration. The
migration ratio in
Ethiopia is very low
or happens in rare
condition. The
moment when
migration happens it
is due to the external
factors such as
environmental,
social, political
factors etc. Instead of
migrants, the country
is having refuges
which are more in
number as compared

The labours migrate
within the boundary
of the nation; they do
not migrate to
another country
(Warner, 2020). The
labours generally
move from
agricultural activities
to non-agricultural
activities which is
from rural area to
urban. Secondly they
move towards the
eastern side of the
country from western
and central area.
every year.
Sometimes issues like
non-observance of
certain rules by the
labours, non
complying with
governmental
policies, etc. leads to
mandatory migration.
to migrant labour.
Restraint or Indulgence: This last dimension refers to the degree of dominance which
an individual in the society can possess in above or their goals. People with strong jurisdiction
are termed as Indulgence. They are of quality like they love enjoyment and prefers to remain
happier as much as they can. In contrary to it people with less control are refereed as Restraint,
who does not have a good power over their desires and goals. They are having a characteristic of
following and accepting rigid laws and stick towards the set communal standards.
Cross-culture
Comparison
China Vietnam Ethiopia
Restraint or
Indulgence
Spring line limited is
the British shoe-
making company
which designs
In Vietnam,
management is
generally done by
younger generation.
In Ethiopia, new
industry not only
grow but they expand
itself in the market by

various varieties of
shoes for men's and
women's and kids.
Chinese market is has
given a favourable
profit to the
expanding industry.
In recent report,
union of china is very
different from their
counterparts in US.
Their interest of
employees, workers
and government were
seen same. Recently
various changes
occur in the china as
wildcat strikes have
broken out. There in
which thousands of
workers and their
cost of living has
arisen. Chinese
workers are directed
by the local labour as
to where they can go
and work
(Sinesilassie, Tabish
and Jha, 2017.).
Leadership and
management in china
As managers use
familial style of
management in the
company.
Vietnamese managers
are relatively
differentiating. There
is a strict control,
formal
communication and
clear reporting
relationship.
Management styles
used in the Vietnam
is familial,
conservative,
bureaucratic. By
using these style
Spring Line Ltd.
Must face some
difficulty to expand
their business. But
now private
companies there
using good training
and development
process. But there is a
shortage of skilled
labours at every level.
Hence, in current
stage Vietnamese
improving their
product. The
industries there
building and planning
to new large
factories. And
training of the
employees is also
given properly by
various methods. In
Ethiopia, there are
many shoe stores
available. So it can
give opportunity to
Spring Line Ltd to
expand themselves
into the Ethiopia
market. There is a
development of
skilled labours,
competition is vast.
There is also good
relation between
employers, employee,
customers and
government (Van De
Voorde and Beijer,
2015). This can give
opportunity to the
company. The
dimension there is

is not much more
good as managers are
not highly capable to
perform their task.
SEOs run as same as
Chinese counterparts.
used is Indulgence as
in this people try to
control their needs
based on the way
they raised that wish.
CONCLUSION
From the above report, it has been concluded that china and Vietnam lags behind
Ethiopia in many reasons like training and development, leadership styles and management
styles used in the country. Because in Vietnam and china, the managers used bureaucratic,
conservative and familial style which is not suitable for the company. But in Ethiopia managers
uses different styles of leadership to engage employees and customers both. This helps the
Spring line Ltd. Company to expand their business in Ethiopia market. This will increase their
market share and profit both.
RECOMMENDATION
Spring line Ltd. should expand their business in Ethiopia as there is a good environment
to expand their business. Because most important government there is favourable with the
companies who is entering into the market. Then training methods are usually provided better
than the other countries. Development of employees or workforce is better to provide them
healthy and safety living environment. Ethiopia is the country in which many shoe industries are
opened. So it creates a competitive environment to expand in that market.

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