HRM in an International Context

HRM IN AN INTERNATIONAL
CONTEXT

Table of Contents
DISCUSSION............................................................................................................................................3
A) Cultural differences between Italy and China and how this may impact HRM and managerial
practice....................................................................................................................................................3
b) Most effective IHRM staffing strategy to adopt......................................................................................6
c) Difficulties expatriates (PCN’s & TCN’s) specifically may face adapting in China and ideas to
overcome these........................................................................................................................................8
CONCLUSION........................................................................................................................................10
RECOMMENDATIONS........................................................................................................................11
REFERENCES........................................................................................................................................12

EXECUTIVE SUMMARY
International HRM is describes as process of hiring and managing activities and
performance of companies at global level. The current study will be based on Café Pascuta,
which attempts to achieve strategic aims and business objectives while operating venture in
home town as well as in new nation and that is China. From this report it has been analyzed that
by using regiocentric approach of EPRG model and taking initiative to overcome challenges,
IHRM has successfully gained desire outcomes.

INTRODUCTION
International human resource management (IHRM) is defined as branch of management
approach that effects organizational human resource activities in cross cultural contexts.
International HRM contributes to manage varied people that are holding different cultures and
belongs to different regions, states and nations. It plays vital role in term of managing global
ventures and performance of their diverse workforce. In context of international ventures, IHRM
is considered as process of acquiring, planning and ethically utilizing human resources such as
workers at workplace. It provides varied benefits to global companies in several terms along with
above. The current assignment will be based on Café Pascuta, which falls under list of the most
famous Italian coffee bar chains. It offers excellent quality coffees and provide tasty Italian
pastries, to customers. The study will explain key cultural differences between Italy & China and
its impact on human resource management as well as managerial practice. Furthermore, it will
justify the most efficient international HRM staffing tactic to adopt and difficulties expatriates,
especially may face adapting in China and concepts to overcome these. Lastly, the report will
clarify appropriate suggestions based on overall analysis in context of challenges that IHRM
faced while setting up venture in new nation.
DISCUSSION
A) Cultural differences between Italy and China and how this may impact HRM and managerial
practice
As said by Aust, Muller-Camen and Poutsma (2018), there are several types of culture
which is followed in different countries. So, when organisation expand in other nation the culture
difference highly impact on their HRM practices. It is impacted as there is change in ethics,
values, etc. of employees. Moreover, entire recruitment and training process is modified as well.
Thus, it is necessary for HRM to find out culture so that accordingly changes are done into
practices. Similarly, it is found that Cafe Pascuta is Italian coffee bar planning to enter in China.
They have already expanded in nations such as UK, France, etc. Therefore, it will highly impact
on their HRM practices due to cultural differences. There are certain models which is used to
find out cultural difference. It is as below:
Hofstede model- the model is used to understand difference between countries in cross
culture. This helps in assessing impact of culture on business practices. There are 6 dimensions