International Human Resource Management

This assignment delves into the complexities of international human resource management (IHRM) within the context of a restaurant chain expanding its operations globally. It examines the challenges and opportunities associated with relocating staff members to new locations, particularly between Singapore and India. The analysis emphasizes the importance of offering attractive facilities and benefits to incentivize relocation, as well as fostering a globally diverse workforce for enhanced stability and rapid expansion. Additionally, it highlights the need for culturally sensitive approaches and effective training programs to ensure successful integration of international employees.

11/15/2017
Student Name
INTERNATIONAL HUMAN RESOURCE
MANAGEMENT IHRM

IHRM
Contents
Introduction................................................................................................................................1
Purpose of Assignment...........................................................................................................1
Brief Introduction of the company.........................................................................................1
Background of the chosen country under subsidiary.............................................................2
Job design & structure................................................................................................................2
Hofstede National Cultural Dimension..................................................................................3
Power distance (PDI)..............................................................................................................3
Individualism (IDV)...............................................................................................................3
Masculinity (MAS).................................................................................................................4
Uncertainty Avoidance (UAI)................................................................................................4
Long-Term Orientation (LTO)...............................................................................................4
Organisation Structure...............................................................................................................5
Recruiting & staffing process.....................................................................................................6
Training & development process...............................................................................................6
Give Introduction....................................................................................................................6
Pre-departure Training............................................................................................................6
Overseas Assignment.............................................................................................................6
Remuneration package...........................................................................................................6
Conclusion..................................................................................................................................7
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IHRM
Introduction
International human resource management refers to managing human resource from a wide
range of cultural, religious and national backgrounds. As companies go global, more
companies are outsourcing and hiring professionals from international markets for their
qualifications and skills (Harzing & Pinnington, 2014). As a result, certain countries like
Singapore developing a rich diversity of skilled professionals from across the world which
makes it important for the businesses to manage each of the employee’s needs. Human
resource managers must, therefore, take certain aspects into consideration such as employee’s
cultural, religion and nationality into consideration to help them a better manager and
coordinate the diverse workforce. Cultural diversity also tends to attract universalism which
results in businesses and consumers adopting universal approaches of living. But this also
makes it more difficult for the business to expand on the global market due to certain markets
being highlight restrictive which results in the business needing to make major modifications
to its human resource and management approaches.
Purpose of Assignment
This research paper examines ABC restaurants’ international expansion strategy and shall
review important points linked to benefits and obstacles the businesses is likely to face will
be highlighted (Briscoe, Schuler, & Tarique, 2012). The report will help the business adopt
important approaches and strategies the help Jack's Place achieves success while expanding
on the international market.
Brief Introduction of the company
ABC restaurants & Cafe is a Singaporean restaurant which is planning to expand its
operations globally. The business was established in 2014 by Jack Dowson and has managed
to expand its operations by opening 16 outlets in Singapore. The Asian market offers huge
potential for food and beverage industry but it’s critical for businesses to adopt effective
marketing and innovative strategies so as to tap into some of the markets. Today India and
China have grown to become attractive markets for more global brands but businesses also
require to make major modifications to their products and human resource management
policies before considering the enter the market. With a majority population consisting of
Hindu’s and Muslims, ABC restaurants will require making some major modifications to its
operations and policies before entering this lucrative market (Khanna & Palepu, 2010). Other
major food chains such as McDonald's have also had to make major modifications to their
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menu making it necessary for ABC restaurants to also consider change and modifications
before entering the Indian market.
Background of the chosen country under subsidiary
India current ranked as the 2nd fastest developing economy globally and is ranked as the
sixth largest economy by nominal GDP. India has ranked 141 positions with regard to Per
Capita GDP and 123rd per capita GDP making index the third-largest economy by
purchasing power parity and among the most attractive markets for any brand to expand in
today. This is due to the low costs of living and low manufacturing costs resulting in their
being more liquid cash among citizens to spend (Enderwick, 2012). This surplus income and
financial stability have resulted in many preferring international brands which have helped
major brands register huge success in the Indian market. India also boasts of having the
second largest population globally which is a major asset for any business. A larger
population means the business has access to mare customers in a single market thus more
sales and profits. A stable political environment and favourable investment terms and policies
make the Indian economy a market every business wants to enter. With a growing middle-
income group, the number of consumers in India who can afford branded products is rising
making the market more attractive for international companies as compared to European
nations which are currently experiencing a financial crisis (Kuil, 2008). But to enter the
Indian market ABC restaurants must be able to address important human resource concerns
related to culture, religion and human resource expectations.
Job design & structure
ABC restaurants are a globally recognized steakhouse specializing in the sale of grilled and
BBQ steak products thus the business falls under the food and beverage industry. The food
and beverage industry is among one of the only industries which are considered to be
relatively stable as most people are willing to spend their money on food and dining (Daft &
Marcic, 2010).
ABC restaurant is therefore heavily dependent on the human resource to manage the different
positions where staff requires handling the perishable products and ensuring they are safe for
consumption. In addition to handling there are aspects such as transportation, handling,
storage, preparation and serving which all required being properly managed to ensure the
highest levels of Highline are maintained.
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It is critical to ensure employees are satisfied as this will help reduce the employee turn over
the business experiences and allow the businesses recommend more people to join the
businesses thus helping create human resource security (Beleva, Tzanov, & Tisheva, 2005).
With global working standards, the number of job applicants for vacancies at the business
will increase thus helping deliver stability which will benefit the businesses.
Hofstede National Cultural Dimension
Power distance (PDI)
PDI referred to Power Distance Index and it is a matric which is used to measure the power
and wealth distribution among citizens or businesses in an economy (Mooij, 2010). The
lowered the ranking the higher PDI matrix which can be observed on the above chart where
India has placed 77 positions where are Singapore is ranked 74th. While this may seem to be
a major difference for the business to consider while planning its expansion its critical to
keep in mind the business needs to also take other aspects such as processing costs and
number of consumers in to consideration while planning international expansions thus
making economies will mid ranged PDI more attractive for investment and business
expansion purpose.
Individualism (IDV)
IDV refers to the degree of unity registered among groups and individuals which is a critical
requirement for every business to identify before expanding to a new market. IDV helps
determine how individuals and communities interact and their willingness to corporate
towards promoting certain aspects success as international brands. Generally higher IDV
refer to higher levels of unity among communities which is critical towards any businesses
performance (Doole & Lowe, 2008). Currently, Singapore attracts a 20 level IDV whereas
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IHRM
India is 48 which demonstrate the community’s perception towards promoting new
businesses and products. This high level of adaptability has resulted in many international
food and beverage businesses registering huge success in India thus making it a critical
requirement for all businesses to evaluate.
Masculinity (MAS)
MAS refer to the ratio of gender distribution with regard to employment and as consumers on
the international market. This is an important statistic as it allows the business determines
gender distribution and how the business may address the concerns. This is especially
important for ABC restaurants which specialize in non-veg products since there may be
major limitations linked to female staff joining the businesses thus making it important for
the businesses to focus its attention on hiring more males (Melkman & Trotman, 2005). In
such situation, the businesses may also need to consider posting females at a position where
less product handling is required thus ensuring certain positions are reserved for the females
were males can take up other responsibilities which may not be readily accepted by female
staff.
Uncertainty Avoidance (UAI)
Uncertainty is a factor which every staff member experiences making it and a critical
requirement for businesses to address so as to eliminate uncertainty related to financial
income and job security (Hillson & Murray-Webster, 2012). Currently, Singapore scored 40
whereas India scores 8 which make it important for the businesses to address this concern and
deliver a stable working environment to its employees so as to promote security and eliminate
uncertainty amount its staff members.
Long-Term Orientation (LTO)
Long-term orientation refers to the duration a business intends on relocating to a new market.
It is critical for every business to determine the duration it expects to remain in the new
market thus allowing the business determine important factors linked to managing the
business thus helping determine the businesses rate of expansion and investment on fixed and
immovable items as well as expansion from within the market (Hofstede, 2003).
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PDI IDV MAS UAI LTO
21-40 41-60 61-80 81-100 101-120
0
10
20
30
40
50
60
70
80
90
India
Singapore
Organisation Structure
ABC restaurant is a private company owned by Jack Hunt. The businesses follow a hierarchy
management system but offer flexibility and open communication with the hope of promoting
transparency and boosting the businesses performance. This means that staff redistributed
based on designations which result in staff falling under several different levels each
reporting to the higher level. The business promotes open communication and has offered
each of its staff member’s communication medium and platforms from which they can
communicate which higher members of staff and the management if they consider their
requests are not being addressed (Dugdale & Lyne, 2010). This helps boost transparency and
equality while still maintaining staff rankings and designations thus helping nurture a healthy
working environment for al staff who can communicate to the management globally.
Recruiting & staffing process
Being a food and beverage business it is critical for the business to implement the highest
standards while recruiting staff. This makes it important for the human resource managers to
utilize effective staffing strategies which address both the companies as well as the
employee’s needs. As mentioned earlier the business must develop universal policies which
address all staff needs and promotes a healthy working environment. These will help the
business to hire the best talent from a diverse community that will be able to serve clients
from a diverse community (Arthur, 2012). The human resource managers will, therefore,
require adopting an effective Staffing process.
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Important Job Titles, Descriptions and Scope
This is especially important while hiring important organisational staff members like the head
chef and marketing and design manager. This is due to these staff members making a major
contribution towards the businesses performance and contribution directly towards the
businesses performance. The head chef is in charge of managing food and beverage
production at the restaurant and ensuring the clients are happy. On the other hand the
marketing and design manager is in charge of advertising and bringing in the clients and
ensuring the restaurant offers a pleasant setting in which they can enjoy their meal. Both the
jobs involve hosting the guests and making sure they are happy and will return to the
restaurant in future thus making both positions strategic towards the businesses growth.
Training & development process
Give Introduction
Every new staff members must be introduced to the business and given an orientation related
to the businesses declining, operation and expectations. This is a critical requirement which
helps orient the new staff and helps them understand what the businesses does as well as what
can be expected of the staff by the management (Sahu, 2009). It also helps the individuals
identify important points linked to the new position as well as important points linked to the
new market of the branch they would be managing.
Pre-departure Training
This refers to the training a staff member is provided with regard to the new position and will
help identify important aspects linked to culture, religion and customer preferences which
need to be understood by the staff (Dowling, Festing, & Engle, 2008). It is critical that staff
hired for international positions is prepared on what to expect before departing as it will help
adapt to the new position of location more easily.
Overseas Assignment
It’s also important to share knowledge and previous experience with the staff that is
relocating which makes it easier for them to adapt to the new position. This makes it
important for staff at all levels to also be encouraged to practice handovers where they are
required to introduce and assist the new staff member perform their initial responsibilities
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thus helping make it easier for them to understand the process in the new position (Martineau
& Feller, 2000).
Remuneration package
Remuneration and the payment package a professional is offered by the organization also
play a huge role towards their performance and loyalty. This is especially important while
considering hiring and exporting staff to new markets since the opportunity needs to be
attractive for the individual thus allowing them to remain focused on their work (4E, 2010).
The business must, therefore, offer attractive salary packages as well as offer other facilities
such as accommodation, transport, and allowances.
Conclusion
Businesses tend to develop strong relationships with their loyal and long-serving employees
and in many situations the businesses prefer offering those individuals an opportunity to
manage their new branches as they have the experience knowledge and skills needed to
manage their positions. But to achieve success while relocating a staff member it’s also
important for the businesses to consider offering the right facilities and benefits to the staff
member which would make it attractive for them to move to the new location. With
businesses expanding globally having a globally diverse workforce helps the businesses
develop more stability thus allowing them to expand more rapidly. This is the same in the
case of ABC restaurants which may have access to many skilled professionals in the Indian
market but require experienced and loyal staff to be exported from Singapore to India to
begin and manager operations than gradually hand over the operations to local staff.
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