Human Resource Management in China: Recommendations for La Costbucks

Running Head: HUMAN RESOURCE MANAGMENT 0
HUMAN RESOURCE MANAGMENT
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FEBRUARY 27, 2019

HUMAN RESOURCE MANAGMENT 1
Contents
Introduction......................................................................................................................................2
Cultural differences.........................................................................................................................3
Organizational orientation...............................................................................................................5
Major difficulties might face by the expatriate staff.......................................................................7
Ethical issue in China for Costbucks.............................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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Introduction
Human resource is one of the most valuable assets for the organization, and since every
individual has different mindset, perspective, and capabilities, managing them is one of the
crucial aspects for the management of the organization. Moreover, the change in an organization
is a time, where appropriate human resource management has to be applied for managing the
organizational staff (Alvesson, 2016).
For this report, the case of La Costbucks would be considered. It is an Italian coffee chain with a
unique selling proposition of using high-quality organic coffees and some popular Italian
pastries. The company products are ethically sourced, and based on corporate social
responsibility. The company seems to be successful in the European market with established
stores in France, Spain, and the UK. The company is willing to expand the business while
entering into the Asian market, initiating with the first store in Beijing and Shanghai that is in
China. While entering into a new market, there would be a major change in the human resource
of the company, as it would require major hiring (Cai, 2018). Being an HR consultant to the
company, the report would include major recommendations and plan related to the human
resource management of the company while conducting business in China.

HUMAN RESOURCE MANAGMENT 3
Cultural differences
La Costbucks is willing to perform business in China, whose workplace culture is different from
that of Italy, which would be one of the reasons for having different or unique HRM approach to
be adopted by the company regarding different aspects like staffing policy and hiring (Bhave &
Mishra, 2014).
Italian business culture is quite different, one of the identified traits would be relationship
oriented, and prefer to reflect good first impression. Considering the management style in Italy,
the manager is expected to appear authoritative in the organization, having higher control.
However, this must not be interchangeable to the dictatorial instructions by the manager
(worldbusinessculture, 2019). It can be said that it is relevant for the managers to consult the
employees or subordinates, before taking any decisions in the team, the final decision would be
taken by the manager. The power level of the manager is determined by the relationship strength
that one has with the senior management (worldbusinessculture, 2019).
The Chinese business culture, it has been observed that the relationships are considered to be
unequal, and these inequalities are respected in their culture. This reflects that in case, there is an
elder person, the younger one will show respect automatically. Therefore, various Asian nations
observe the lack of observance of values of hierarchy as the major issue of the west. Moreover,
the manager is taken as the father figured and they are not expected to question by the
subordinate and receive obedience and loyalty (hofstede-insights, 2018). Moreover, one of the
major aspects of Chinese culture is innovation, which is promoted to the maximum extent. Other
some of the major characteristics of the work culture observed in China were maintaining
harmonious human relations, considering the personal relations to favor, moreover, it was
expected that an individual must avoid losing face-shame that is indignity in public
(worldbusinessculture, 2019).
Recommendations for HRM approach in China
 Considering the recruitment process, some of the staffing policy include inheriting, the
already working employees of the local parent partner, the reason being the trust among
the employees, as they would be referred by another existing individual in the
organization (Chaffee, 2017)