Cross Cultural Management Issues

Running head: Cross cultural management
Cross cultural management

Cross cultural management
Table of Contents
Introduction.................................................................................................................................................3
International HRM issues............................................................................................................................3
External environment of the Nepal (host country)......................................................................................5
Cross cultural management issues..............................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Cross cultural management
Introduction
The primary aim of this paper is to elaborate the cross cultural management and international
HRM issues. Hungry Jacks Food Company has been taken in the task to explore and flourish the
business in the host country. Hungry Jacks is one of the biggest brands in the world who
provides consumer goods and services to the customers across the world. Nepal country as a host
country has been chosen in the paper. The company needs to make unique and effective
strategies to earn maximum returns and revenue in the foreign market. Along with this, the
paper explains that how the company conducts external environment to cope with the
competitors in the market. More detail of the task has been detailed below.
Hungry Jack’s Pty Ltd. is an Australia fast food company which is incorporated in 1971. It is
wholly owned subsidiary of competitive foods Australia. It is the second biggest franchise of
burger king in the world. There are approx 15,000 employees are working in the organization
(Hungryjacks, 2018). The mission of the company is to ensure the guests return by providing
great food through the highest standards of service, quality, and cleanliness. The core values
include safety, guests matter, integrity, dignity and perform consistently. The vision of the
organization is to increase the revenue and profitability in the global market. In today’s
globalization world, the company is planning to initiate its business activities and operations in
Nepal. Therefore various issues and challenges are faced by the company in the foreign market
related to the cross cultural and international human resource management. Currently, the
company is operating its business actions in Australian country in a hassle free manner. The
Australian legal system is a mixture of statute and common law. Furthermore, the country is well
known for its effective regulatory framework. Along with this, the country uses talented and
skilled workforce to handle the business activities and operations.
International HRM issues
International human resource management plays a significant role in each and every company to
run the business effectively. HRM refers to those activities that are undertaken by the firm to
effectively and efficiently utilize its human resources (Rees & Smith, 2017). These activities
include performance management, staffing, training and development, reward, incentives and
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Cross cultural management
labor relations. If Hungry Jacks starts its business operations in Nepal then various international
HRM issues would be faced by the company (Moran, Abramson & Moran, 2014). Some of the
international HRM issues have been detailed below.
Strategies and policies: The strategies, rules, legislations and policies may influence the
demands, needs and requirements of employees in the host country. Hungry Jacks needs to
identify and analyze the strategies, policies and needs of the host country to gain competitive
advantages in such country. Therefore, it is one of the biggest issues that is encountered by the
firm while initiating the business actions in Nepal (Shin et al, 2012).
Selecting the right person for a foreign assignment: One of the significant challenges that
dealt by the company in host country is selecting the right person for a foreign assignment. The
organization is failed to know and analyze the qualification and skilled of the employees in the
host country. Therefore, Hungry Jacks is unable to select the right candidate for a foreign
assignment (Brewster, Mayrhofer & Farndale, 2012).
Managing and handling workers: The employees come from different nations in international
market. This can be a major challenge in the Nepal for the company. If the company implement
business in Nepal then it would be difficult for the firm to manage the expatriates in an effective
way. For example, both countries (Australia and Nepal) follow different rules and regulations
thus compensation packages in both the countries quite differ from each other. The environment
of the both the countries also are different that can affect the sustainability of the firm in Nepal.
If the rewards and compensation packages are not balanced by the company for the workers in
both the countries then various issues are faced by the firm (Jonsen, Maznevski & Schneider,
2011).
Technology issues: It is other significant issue for international human resource management. It
has been noted that Australian uses advanced and latest technologies as compared to the Nepal.
This creates various hurdles within the organization. It shall be noted that Australian people are
highly dependent on the advanced technology. Thus, the company is failed to find out skilled and
competent people in Nepal due to lack of technology and resources. If Hungry Jacks starts its
operation in Nepal then it will have to provide training and development coaching to the workers
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Cross cultural management
so that operational efficiency and effectiveness can be attained (Delbridge, Hauptmeier &
Sengupta, 2011).
Economy issues: If the firm initiates its business in Nepal then economic issues would be faced
by the company. The economy of both the nations is completely different from each other.
Australian country maintains strong and unique economy whereas Nepal is developing nation
with relatively poor labor force. Due to economic issue, the organization will have to manage the
salaries and wages of the workers accordingly. Inflation rate in the host country could also affect
the performance of the workers as well as organization. Diverse workforce is another issue in
Nepal that would be dealt by the company while operating business in Nepal (Minkov &
Hofstede, 2011).
Ethics issue: Different counties follow different code of conducts and norms. It has been noted
that ethical consideration in both the nations would be different. Ethics is one of the biggest
issues that may influence the operations and activities of the firm adversely in the host country.
If the cultural beliefs are different of both countries then ethics of both the countries will also be
different (Martin & Nakayama, 2013).
External environment of the Nepal (host country)
It has been analyzed that various external factors could also influence the business operations
and actions of Hungry Jacks in Nepal. Before initiating the business activities in Nepal, the
company needs to analyze and evaluate the external environment of the country to gain
competitive advantages in the marketplace (Varma & Budhwar, 2013). The external environment
includes various factors such as political, economic, socio-cultural, technological, legal and
environmental factors. The external environment of the Nepal (host country) has been discussed
below.
Political factors: Nepal has been rapid political changes during the last two decades. The
various political factors include safety regulations, tax guidelines, trade regulations, political
stability and employment laws that may influence the progress of Hungry Jacks in Nepal
adversely. It has been measured that government in Nepal is highly unstable and poor. These
factors can affect the targets and goals of the firm negatively.
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Cross cultural management
Economic factors: There are various economic factors exist in Nepal that have a direct impact
on the business of the company. The economic factors include inflation rate, economic growth,
employment rate, unemployment, interest rate and exchange rate. The GDP of the host country
was estimated $17.91 in 2012. Furthermore, inflation is very high in the country which may
affect the profitability of the firm in Nepal. The inflation rate in Nepal was measured 9.93 in
2016 that is very high from Australia.
Socio-cultural factors: The socio-cultural factors include lifestyles, values, beliefs and culture
of the people that affects the performance and productivity of the firm. In Nepal, people follow
different cultures, values and beliefs that are quite different from Australians people. Language
issues also create obstacles and barriers in the global market (Hancock et al, 2011).
Technological factors: These factors include latest and advanced technology and resources that
could have direct impact on the effectiveness of the workers. Latest and innovative technology is
not used by the Nepal therefore; the company has not been able to meet its long term targets and
goals effectively (Wang, Chen & Chen, 2012).
Legal factors: It is noted that legal systems of Nepal is a mixture of common law and the Hindu
legal concept. Nepal was not colonized by a Western state thus, various legal factors could have
direct impact on the productivity of the organization. The Nepal company act 1991, serve as the
definitions and a guide to register to do business in the country and provides laws and
legislations to do so.
Environmental factors: After the various researchers, it has been analyzed that various
environmental factors can have adverse impact on the business operations of Hungry Jacks.
There are various environmental issues include overpopulation, pollution, deforestation, energy
and species conservation. Before implementing the business in Nepal, Hungry Jacks needs to
focus on the environmental factors of the host country in order to beat the rivalries in such
country and to maximize the revenue and outcomes. It will also help to attract maximum number
of the consumers in the Nepal (Lindner & Wald, 2011).
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Cross cultural management
Cross cultural management issues
There are ample of cross cultural management issues are encountered by Hungry Jacks when
implementing business in the host country. Some of the cross cultural management issues are
discussed below (Thomas & Peterson, 2017).
Language issues: It is one of the significant and foremost issues that may be faced by Hungry
Jacks in its expansion and development plan in other country. It has been noted that Nepal and
Australia has completely different in languages. Therefore, it is difficult for the employees to
understand the language of Nepal while performing tasks and duties in Nepal. It also reflects the
operational effectiveness and efficiency of the stakeholders and employees. To handle this issue,
the company needs to provide cross cultural management to the employees to deal and handle
the cross cultural and language issues.
Education and religious issues: The employees of both the countries have different types of
educational beliefs and religious as well. This is major problem for the company to start
operations in Nepal. It has been noted that Australia is highly educated as compared to the Nepal.
This will also reflect the services and products that they render to the customers. Thus, the
company will have to put some extra endeavors in training and development campaigns and
programs.
Ethnic and racial backgrounds: The employees of both the countries are different from each
other in terms of racial and ethnic backgrounds and personality. It is considered major issue in
the host country. It also arises conflicts and obstacles among the employees in the host country.
It has been noted that Nepalese believes in physical work therefore they afraid to use latest and
innovative technology. Furthermore, they do accept the organizational and managerial changes
in the host country market. If talks about the Australian, generally they believes in latest
technology and resources.
Community demands: The community of Australia and Nepal are quite different from each
other in terms of requirements, wants and desires they have. This creates hurdles and obstacles at
the workplace. The eating habits and market trends are different in both the countries therefore; it
can affect the operations of Hungry Jacks in Nepal.
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Cross cultural management
Inflexible attitude: It has been analyzed that some employees when they enter in different
culture then to ignore experience and exposure of the host culture. This result is closed mindset
and introvert behavior and also leads to a bed impression in the minds of the customers in the
host country. All these factors may influence the long term goals and objectives of Hungry Jacks
in Nepal (Briscoe, Tarique & Schuler, 2012).
Now it is recommended that Hungry Jacks should focus on the culture and communication of the
employees. Cross cultural training should be provided by the HRM in host country while
expansion and development of the business in the host country. The company should also
maintain diversity at the workplace to eliminate these issues and challenges.
Conclusion
From the above mentioned analysis, it has been concluded that in the development and
expansion of the Hungry Jacks in the host country (Nepal), there are ample of issues will be
faced and dealt by the company. These issues include cross cultural management, international
HRM and external environment of the host country. The above analysis shows that how the
company deals with external environment factors to destroy the competitors in the host country.
Effective leadership team shall be appointed by the company to analyze and evaluate the
strategies, plans and policies of the competitors in Nepal.
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Cross cultural management
References
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