HRMIC project

This report assesses the cultural and economical differences between Italy and China and how this may impact HRM and managerial practice. It also examines the most effective IHRM staffing strategy to adopt and the difficulties expatriates (PCN’s & TCN’s) specifically may face adapting in China and ideas to overcome these.

HRMIC Project

EXECUTIVE SUMMARY
Below is a report assessment comprised of insightful and essential knowledge of cultural
and economical differences in different economic nations that results in being a barrier in
carrying out operations and activities. For instance, primary aim of this report lies in
identification and determination of ideal HRM practices which further facilitates in ensuring
organisational growth and success. In addition to that, it will demonstrate issues and challenges
that could arise for respective business organisation in establishment of their additional business
unit in another economic nation. Furthermore, it will further contribute in providing essential
knowledge of Human resource management and various elements related to the same.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
1. The key cultural differences between Italy and China and how this may impact HRM and
managerial practice.....................................................................................................................4
2. The most effective IHRM staffing strategy to adopt..............................................................4
3. The difficulties expatriates (PCN’s & TCN’s) specifically may face adapting in China and
ideas to overcome these..............................................................................................................7
References........................................................................................................................................8

INTRODUCTION
The term international HRM is defined as various set of activities which are used to focus
and target the human resource management at the international level. The company considered
for the project is Cafe Bella which is an Italian coffee bar chain that has its expertises mainly in
organic high -quality coffees and Italian pastries. It is considered to be a huge hit in Italy and is
looking to expand into the Asian market by opening its first stores in Shanghai and Beijing. This
report is structured around the following aspects and key cultural differences between Italy and
China which can affect the various HRM and managerial practices. The report also examines the
kind of most effective IHRM staffing strategy in order to implement in the business. There are
various types of strategies such as ethnocentric approach, polycentric approach, geocentric
approach, and regiocentric approach. The report will present various a range of difficulties while
expanding in China. The provided project further provides the recommendations to overcome the
issues which are faced by the chosen company while expanding into new country (Furusawa and
Brewster, 2018).

MAIN BODY
1. The key cultural differences between Italy and China and how this may impact HRM and
managerial practice.
China is a fast-growing economy and that us why it is preferred by many people and
countries. While growing the business in China, there are various issues which are linked with
cultural factors that have direct impact on the HR policies and activities. Opening a foreign
restaurant in China can be a super difficult task and undertaking, but if the business has a
realistic business plan and are prepared set of rules for any setbacks then they can perform better.
The key cultural differences between Italy and China are explained below-
Every market is characterised by specific geographical, social, cultural and economic
factors that affects the degree of risk and complexity for commercial activities. Language barrier
is one of the main cultural gap between Italy and China because it is difficult to communicate
( Schotter, Meyer and Wood, 2021). Language and culture affect every aspect of society that is
why a better knowledge of their values and various beliefs of specific culture are required.
Operating and expanding the business in a foreign country has come up with various challenges.
Mainly, the company will always require to have a translator for the purpose of translations and
they have to rely on them on important decisions (Aust, Muller-Camen,and Poutsma,, 2018).
Another issue is of Chinese employees in the kitchen as they are habitual of cooking the
food in Chinese manner. Also, it will be difficult to choose the best location for the business
operation. That is why the investors are require to be extra aware to find location for business.
Another problem is lack of experience in operating business in new country and also to obtain
the business license. Hence, the respected business can face the major issues in order to attract
the Chinese customers towards their business operations. In regard to this major population of
china prefer their region food and already there are number of competitors have their core
business in the region. Therefore, the mentioned business need to redesign their business model
in order to fill the cultural difference gap between the two nation (Viriyasitavat, Anuphaptrirong,
and Hoonsopon, 2019).
China has the strict policies regard to the working hour. In their laws any organisation or
businesses forced their employee to work more than the standard time can face the legal
consequences. In regard to this the respected company need to adhere such work ethic policy in

the mentioned region in order to perform the smooth functions. Hence, any inappropriate
circumstances can cause the lawsuit on the mentioned company. Therefore, the HR management
need to develop the policy to imply such policy more efficiently in the operational function of
the organisation.
Hierarchy plays one of the vital roles in the china, as people over their respect to the higher
level management. Lower-level management team cannot contact to they are superior directly as
they follow the strict pattern of hierarchy whereas in Italy organisation majorly follows the flat
pattern in order to perform the fast decision. In Italy lower-level worker can contact to their
manager directly without channelise the communication. Hence, such cultural difference can
develop the complexity in the organisation functions. In instance if the respected business have
Italian worker in the china could cause the complexity in their business function. It cannot built
the strong hierarchy due to different habits of performing the function. In regard to this the
respected business need to rethink or redesign their organisation structure in order to perform the
effective functions in the organisation. In addition to this the HR management need to deploy the
training in china towards developing the favourable skills in order to develop the essential skills
in their employee (Wu, Wood, and Khan, 2021).
2. The most effective IHRM staffing strategy to adopt
Human resource management is determined as management practices organised and
regulated in an business organisation in order to manage workforce or employees working in that
workplace. For instance, this meaningful management process is comprised of various different
activities and functions including recruitment, selection, job design, training and development,
etc. In addition to that, activities and practices of representatives engaged in Human Resource
management revolves around employee life-cycle in that particular workplace. Furthermore, it
initially starts with analysis and determination of need and requirement of workforce in that
particular workplace and goes on consistently towards development of employee and retention of
workforce (Hamilton, and Webster, 2018).
Human resource strategy is defined as strategic approach taken into account by
representatives engaged in HRM in order to ensure effective management practices in
workplace. For instance, skilled and productive workforce is considered as one of the most
significant competitive advantages to a business organisation which is further influenced by
effective Human resource management in that particular workplace. Furthermore, aim and

purpose behind designing Human resource strategy lies in view of maximising performance of
workforce in carrying out their assigned roles and responsibilities.
In order to ensure effective and efficient execution of Human resource management,
there are various practices introduced which influences HRM in most efficient manner which are
as follows:
 Development of safe and secure working environment: The management
representatives in Cafe Bella must be aimed and determined at development of safe and
secure working environment for employees. For instance, safe and secure working
environment influences sense of belongingness of employees towards respective business
organisation which further facilitates in initiation of additional efforts in completion of
assigned tasks and activities. In addition to that, it includes prevention of potential risks
in workplace, job security, eliminating any sort of unethical practice in workplace, etc.
which promotes development of positive working environment.
 Effective hiring: This activity plays most crucial role in effective HRM practices as it
includes recruitment and selection of appropriate candidate for vacant job position in the
workplace. For instance, HR managers in respective business organisation must develop
efficient strategies for their hiring process in order to establish another business unit in
Asian region. Moreover, suitable and appropriate employees will contribute values
towards completion of assigned tasks and activities in an efficient manner. On the other
hand, hiring of an unsuitable candidate could lead to barriers in effective and efficient
completion of operations and activities in workplace (Stone, Cox, and Gavin, 2020).
 Effective teams with self-management: HRM officials must be aimed at development
of effective teams in workplace with employees of similar skills and abilities in order to
be engaged in specific and similar tasks. For instance, It will facilitate group or team in
being aimed at achievement of organisational goals and objectives in order to ensure
success and growth. In addition to that, self-management of employees will further
contribute additional values towards development of positive working environment in
workplace with higher efficiency and productivity. Furthermore, Teams must be allotted
to employees according to their particular department and their personal skills and
abilities in order to ensure effective coordination.

 Performance based compensation: Compensation has been determined as most
efficient motivation practice which ensures satisfied employees as well as initiation of
additional efforts in completion of assigned tasks and activities. For instance, HR
managers in Cafe Bella must consider compensation to their employees on the basis of
their performance in workplace. In addition to that, this positive initiative will facilitate in
regulating and maintaining free and fair practices in workplace as well as eliminating any
sort of unfavourable practice which could lead to negativity in working environment.
 Relevancy in organising training for an employee: Organising training and
development programs for employees is one of the primary role of HR managers in order
to ensure personal growth and development of employees. For instance, representatives
engaged in HR management in Cafe Bella must consider suitable and appropriate training
programs and workshops for employees according to their needs and requirements.
Furthermore, it will facilitate in development of employees in their particular area with
scope of improvement which will contribute additional values towards completion of
operations and activities in an effective and efficient manner (Stewart, and Brown, 2019).
 Effective employee engagement: In order to ensure effective coordination and
collaboration of employees in workplace, employee engagement plays a crucial role. For
instance, it allows workforce engaged in that particular workplace to express their ideas
and opinions in decision-making practices of management. Moreover, it will allow
management representatives of Cafe Bella to maintain satisfied workforce in workplace
by acknowledging their contribution towards effective decision-making in workplace.
Therefore, it contributes various additional values towards effective and efficient Human
Resource management.
All these practices are determined as ideal HRM practices to be taken into consideration by
management representatives of respective business organisation in order to carry out HR
practices in an effective and efficient manner. Furthermore, implementing all these practices and
activities in workplace will further facilitate in preventing issues and challenges that could arise
in workplace with effective and efficient HRM practices.

3. The difficulties expatriates (PCN’s & TCN’s) specifically may face adapting in China and
ideas to overcome these.
An expatriate is it referred to a person residing in a foreign country which is different from
origin or native country. For instance, the major purpose behind this movement includes personal
as well as professional purpose. In addition to that, in business environment this term is basically
referred to an educated professional, or a skilled worker moving abroad either in dependently or
by any business organisation in order to fulfil labour needs. Furthermore, an expatriate could also
become normal resident with relinquish citizenship in their native country in order to become a
member of another economic nation (Zaid, Jaaron, and Bon, 2019).
In order to move to China, these expatriates may face many issues or challenges in stepping
out of their native country towards foreign country for personal as well as professional purposes.
For instance, primary and major of these issues or challenges are as follows:
 Language barrier: This issue has been considered as primary and foremost of all issues.
For instance, this issue revolves around communication as it includes different language
adapted by people living in different economic nation. In addition to that, Chinese
language could result in being a barrier for these expatriates in carrying out their desired
operations and activities in an efficient manner. Moreover, this issue is very common
among people moving from one economic nation to another as different to graphical
location has different language. Furthermore, this issue could be overcome by these
expatriates with consideration of corrective measures and precautions against the same. It
includes prior knowledge or information off Chinese language as well as local support or
guide who can speak both Italian and Chinese. Therefore, this positive initiative could
facilitate in prevention of this common issue or challenge that could arise before these
expatriates in China.
 Financial management: Each and every economic nation has different Taxation and
government policies which determines spending of consumer. For instance, it could result
in an issue associated with maintenance of personal finances as well as expenses in
carrying our professional practises In China. In addition to that, there are various aspects
and factors which influence and affect Finances of people or expatriates moving to
foreign country. Furthermore, acquiring sufficient amount of information and knowledge
regarding the same could facilitate Expatriates of respective business organisation in

maintaining their personal finances as well as professional expenses. Therefore, this issue
is most likely to occur for these expatriates in China but it could be prevented with prior
preparations regarding the same (Morgeson, Brannick, and Levine, 2019).
 Lack of local support: In establishment of a business unit, support of people from the
geographical location plays a crucial role in ensuring success. For instance, these
expatriates will face issues of being alone in the foreign country and lack of local support
in that particular graphical location. In addition to that, loneliness and inability to make
good relations with people easily good lead to demotivation or degradation of efficiency
of employees being sent out as expatriates. Moreover, an individual also has personal
goals and objectives which primarily involves social recognition and meaningful
relationship with people in society. Lack of local support could result in being a barrier
towards accomplishment of personal goals which could result in demotivation and
degradation of productivity. Furthermore, respective organisation could initiate prior
precautions for expatriates with acknowledgement of this aspect and providing them with
access to local support. Therefore, it will facilitate in prevention of this negative aspect
and will contribute additional values towards adjustment of expatriate in China (Boone,
Kurtz, and Berston, 2019).
 Cultural differences: adjusting into different economic nation could be difficult due to
cultural differences in that Specific to graphical location. For instance, China has totally
different cultures and cultural practises as compared to Italy which is the native country
for respected business organisation. In addition to that, it also includes changes in
business practises as well as consumer behaviour in consumption of products and
services offered by business organisations. Learning a new business culture could be very
challenging and time consuming for representatives engaged in Cafe Bella. Furthermore,
in order to prevent this particular issue or challenge, these expect rates moving to China
most consider asking for assistance with people in their network in setting up of business
in a particular to geographical location. Therefore, they must not be shy or hesitate about
the fact that they do not belong to that location and are expatriates.
Referring to above mentioned information, Expatriates of respective organisation could
face all these issues and challenges in adjusting in China. For instance, each and every issue is
provided with recommendation a solution for the prevention of same. In addition to that, these

determined and recommended solutions will facilitate in preventing these issues as well as
ensuring effective and efficient completion of operations and activities in workplace.
Furthermore, among all of these issues and challenges, language and cultural differences are
considered as primary and major which could be taken care with recommended solution.
CONCLUSION
From the above report assessment, it could be concluded that Café Bella is an Italian Coffee Bar
serving Quality coffee and pastries to their customers. For instance, respective business
organisation is determined at further expansion into Asian region with priority aimed at China. In
addition to that, respective business organisation is about send a general manager to new
geographical location in order to carry out operations and activities which facilitates in
establishment of additional business unit in another economic nation. Moreover, representative
chosen for the roles and responsibilities of general manager for new business unit is going to face
various issues and challenges while operating in new business environment. Language barrier,
financial management, Lack of local support, and Cultural differences are determined as primary
issues that could arise in ensuring effective managerial practices. Furthermore, development of
safe and secure working environment, effective hiring of employees, effective team with self-
management, performance-based compensation, employee engagement in workplace, etc. are
determined as ideal HRM practices. All these positive initiatives will facilitate respective
business organisation in carrying out HRM practices in an effective and efficient manner.
Therefore, consideration of these issues as well as effective HRM practices will contribute
various additional values towards establishment as well as further growth of respective
organisation.
RECOMMENDATIONS
There are few recommendations to management representatives of Café Bella in order to
provide them with guidance towards establishment of additional business unit in China. For
instance, these recommendations are as follows:
 Sufficient Research: Each and every economic nation is comprised of various
differences which differentiate them from one another. For instance, it includes cultural
differences, consumer behaviour, market trends, etc. In addition to that, respective

business organisation must invest good amount and efforts in research in order to ensure
efficient operations and activities.
 Prior Preparations: Being prepared with measures and precautions regarding
determined issues and challenges will facilitate respective organisation in minimising
uncertainty as well as risk. It includes being ready to face issues and challenges as well as
effective strategic planning. Therefore, prior preparations with appropriate corrective
measures will contribute towards efficient completion of tasks and activities (Boso, and
et. al., 2019).
 Building local support: Management representatives engaged in Café Bella need to look
out for local support in China as a business organisation require local support from that
specific geographical location. Local support could be attained through developing
connections over business terms or personal terms in China. Therefore, it will facilitate in
providing assistance in establishment of additional business unit in another economic
nation.

References
Books and Journals
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