Cross Cultural and HRM Issues Faced by Hungry Jack in Expanding to Nepal

CROSS CULTURAL
MANAGEMENT

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Contents
INTRODUCTION.................................................................................................................................2
Cross cultural issues..........................................................................................................................2
Human Resource Management Issues...............................................................................................3
CONCLUSION.....................................................................................................................................4
REFERENCES......................................................................................................................................4

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INTRODUCTION
In the age of globalisation, there are larger numbers of companies have crossed borders
(Thomas and Peterson, 2017). Hungry Jack is an Australia based big fast food chain and is
planning to open its business in Nepal. Because of the fact that there is a huge difference in
the culture prevailing in both the nations, they tend to face many kinds of HRM and cross
cultural issues. This report highlights some of the issues that are faced by Hungry Jack while
expanding to Nepal.
Cross cultural issues
There are several cross cultural issues that arise in the international business. Some of them
are as follows:
 Language barrier: The first and the foremost problem that any company faces in its
expansion plan is the language barrier. Since Australia and Nepal has different type of
language hence for the management of Hungry Jack, it becomes difficult to
understand the language of the local employees or other stakeholders (Primecz,
Romani and Sackmann, 2011). This is also reflected in the operational effectiveness
and performance of the firm as the management has to deal with the sense of
understanding.
 Racial and Ethnic backgrounds: The people of Australia and Nepal are from distinct
racial and ethnic backgrounds, this act as a very big issue in the management of
employee relations. It also creates problems as it generates conflicts among different
staffs at different level (Bird and Mendenhall, 2016). This is because their beliefs and
understanding about anything is distinct from each other. This also gets reflected in
the amount of hard work they do as well as the type of work they prefer to do. For
example Nepalese people believe on physical work while Australian work force
believes in less physical work.
 Education and religious beliefs: People of both the nations have different kind of
religious as well as educational beliefs. This is a problem for the organisation as they
have to respect the religious belief of Nepal in this case. Australia is a highly educated
society while Nepal’s educational standard is comparatively on lower side. This also
gets reflected in the type of services they provide. Since the company is expanding in