Global Human Resource Management

Running head: GLOBAL HUMAN RESOURCE MANAGEMENT
Global Human Resource Management
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1GLOBAL HUMAN RESOURCE MANAGEMENT
Executive Summary
The purpose of this report is to analyse the environment of China in terms of expanding
business based on European culture. A French coffee bar, Le Costbucks has planned to
explore Asian market with French delicacy targeting customers with utmost interest in
foreign cuisine. However, while researching over the market it has been observed that
cultural differences is one of the crucial issues if Le Costbucks is going to aim profitability
and safe workplace environment for employees from different background. Addressing
lingual and cultural differences, HRM practices have been discussed. Geocentric approach
has been suggested to operate the business within Chinese setting of market. Moreover, this
report has explored ethical issues faced by migrated employees and issues related to terms
and conditions of employment within a subsidiary store at foreign field.

2GLOBAL HUMAN RESOURCE MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Overview of Le Costbucks.........................................................................................................3
Question 1..................................................................................................................................4
National Culture of France.....................................................................................................4
National Culture of China......................................................................................................6
Significance of the cultural differences for the HRM approach............................................7
Question 2..................................................................................................................................8
International Staffing Strategies.............................................................................................8
Justification for the use of the geocentric staffing strategy..................................................10
Question 3................................................................................................................................11
Ethical Issuesrelevant for a European MNC setting up business in China..........................11
Migrant workers and employment conditions......................................................................11
Migrant workers...................................................................................................................12
Employment terms and conditions.......................................................................................13
Conclusion................................................................................................................................13
Recommendations....................................................................................................................14
References................................................................................................................................16

3GLOBAL HUMAN RESOURCE MANAGEMENT
Introduction
As opined by Moore (2016), the process of internationalisation or globalisation and
the extensive usage of different kinds of innovative technologies had drastically changed the
nature of the contemporary business world. Wales et al.(2019) are of the viewpoint that the
different business firms with the objective to earn a higher amount of profit are increasingly
expanding into the business markets of the diverse emerging nations. However, there are
various factors that the business firms expanding into the business markets of other emerging
nations need to take into effective consideration. One of the most important factors in this
regard is the difference in the national cultures of the host nation and the parent nation of the
business firm (Boscari et al., 2018). This is important because of the fact that the business
style of a particular nation is greatly influenced by the element of national culture.
The entity of national culture also plays a pivotal role in determining the nature of
products or services that the concerned firm would offer to the customers, the kind of
international staffing strategy that they need to adopt in the host nation, corporate social
responsibility (CSR) policies and others (Vaiman & Holden, 2015). In this regard, it can be
said that failure to take the element of national culture into effective consideration can not
only significantly affect the level of success attained by a firm in a host nation but at the same
time can cause substantial business losses as well. This report will analyse the manner in
which the element of national culture and ethical issues mould the HRM approach as well as
policies followed by a firm in a host nation in the particular context of Le Costbucks’
intended expansion into China.
Overview of Le Costbucks
Le Costbucks is a coffee bar chain in the nation of France and is reputed for the high
quality of pastries and coffee that it offers to the customers. More importantly, one of the