BUS3011 HR Issues: XYZ Production Shift Analysis and Recommendations

This report examines the HR-related issues stemming from XYZ's partial production shift from Northampton to China, Vietnam, and Ethiopia. It begins with an introduction to the role of HR and the challenges posed by global business expansion and operational changes. The core of the report involves a cross-cultural comparison, focusing on employee relations, labor mobility, and leadership management across the three countries. It applies Hofstede's cultural dimensions, including power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence, to analyze cultural differences and their impact on HR strategies. The report highlights how these cultural dimensions influence employee behavior, management styles, and the need for tailored HR approaches. The report also explores the importance of the Hofstede model in understanding cultural nuances within organizations, particularly in multinational corporations. It provides insights into how HR can address communication errors, manage diversity, and implement effective policies in areas such as recruitment, training, and employee relations. The report concludes by discussing the implications of these findings for HR managers, emphasizing the need for strategies that align with the specific cultural contexts of each country.

BUS3011HR-Related
issues

Table of Contents
INTRODUCTION...........................................................................................................................1
Cross-cultural comparison...............................................................................................................1
Hofstede Cultural Dimension..........................................................................................................2
Power Distance............................................................................................................................2
Individualism...............................................................................................................................3
Masculinity..................................................................................................................................3
Uncertainty avoidance.................................................................................................................4
Long- Term Orientation...............................................................................................................4
Indulgence....................................................................................................................................5

INTRODUCTION
HR department plays a vital role within an organization as they help in retaining efficient
employee, hire employees as per needs and requirements of organization, provide training and
development to employees, motivating them and many more. An effective HR of an organization
help them in attracting talented workers and undergo changes in an effective manner (Liu and et.
al., 2020). But there are various kinds of changes and issues that are faced by HR that can impact
overall the company in many ways. Changes or issues like expansion of business globally,
changes within business operations and man y more directly impact HR. If an organization is
thinking of shifting their business operation such as manufacturing or production from one
country to another then it can direct impact HR in terms of employee relations, mobility of
labour, leadership and management, management training and professional management of
employees. This assignment will lay emphasis upon HR related issues XYZ’s partial production
shift from Northampton to China, Vietnam or Ethiopia.
Cross-cultural comparison
Employee relation: Both china and Ethiopia are masculine countries in which difference
between men and women are always seen in fact works are also divided according to this
difference. It affects relation of employees and also creates barriers in promotion of diversity and
equality at workplace. There is requirement of providing equal rights and also allocating tasks as
per the experience and ability rather than power. But Vietnam is a feminine society where
responsibility ratio of men and women is equal. This can impact development of strategies for
maintenance of employee relation (Zhao, Teng and Wu, 2018). It is better than 2 other countries
and due to this behaviour of people and feminism country it can take several advantages of
attracting skilled workforces and taking competitive advantages. HR of XYZ organization needs
to develop different strategy for maintenance of employee relation of china and Ethiopia, and for
Vietnam.
Mobility of labour: people of China are long term oriented whereas people of Vietnam are short
term oriented so mobility of labour will be much easier for HR in China as compared to
Vietnam. It can also be said that as per these differences that Chinese can get several
opportunities and can take challenges in an effective manner. As compared to China, people of
Vietnam are less focused and oriented so, there is requirement of focusing on long term
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achievement and focus for becoming developed and competing with other countries (Huang,
2020).
 Leadership and management: in order to adopt appropriate leadership and management
skills it is important for HR of XYZ to focus upon analyse culture of all the three country as
it will directly impact success or failure of organization. It is important for these 3 countries
focusing on leadership and management. It can help them out in going on the right track as
leaders help employees and people in going on the right track and preventing themselves
against errors and failure.
So, on the basis of above discussed differences on this basis it can clearly be said that China and
Vietnam have same cultures and people of these countries and culture can flexible and can adapt
other tradition in an effective manner.
Important of hofstede model in HR
As said by (Zhao, Teng.and Wu, 2018) HR of every company is responsible for
maintaining culture in organization. However, there are diversified people working in
organization so it is necessary to provide and create a positive culture. This is because sometimes
there may exist a gap which can result in negative culture. The staff may not be able to
communicate with each other in effective way.
As per the view of (Bilby and et.al., 2020). The hofstede model is highly been used by
HR which enable in understanding culture, behavior, etc. Besides that, it helps in comparing
culture of two countries by which HR get insight on what difference may occur and then
according develop strategies. Moreover, model is useful in evaluating how culture influence on
people behavior and what can be done to mitigate its impact.
It is clear that cultural differences are a huge source of conflict for Multinational Corporations.
From the need to address simple cross cultural communication errors to larger issues such as the
exploitation of a certain country for company profit are often problems handled by international
management teams and human resources officers. Diversity of culture and the impact on human
resource policies has increasingly become an important to solve to solve conflict.
HRM functional areas are consider the areas such as selection, training, development, pay
benefits, selection. Within the terms focuses on measure as Hofstede’s finding on the hiring
process within collectively takes the group within account. As he founded that first preferences
within the hiring process can be provided to the relatives of the manager as well as those of other
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workers. Hofstede discuss that the hiring indivudal from a family that can be known by the
employees enahces the motivation level as well as decreases employee turnover issues.
As per the view of (Taylor. and Zhou, 2019). Hofstede’s work also remarks the workers
from a collectivist society are more focused within the reputation of the firm they work within as
well as aids in correcting the undesirable behaviour of a family member within the firm. It also
focuses that people from such societies also focuses on job security as very vital aspect within
organisation. Hofstede also supports within the arguments between employee and employer
within an entity is same to the relationship within a family where there are mutual obligation
regarding to the protection for the loyalty. It is also noticed that the poor performance of a
workers cannot be a reason for his dismissal. Training as well as development are designed as
according to the requirement of the firm and gives rewards to the workers that serves the firm for
the longest. Thus the several hospitality activities focuses on the required of a teammates.
As per the view of (Beugelsdijk, . and Welzel, 2018) Hofstede also links femininity and
masculinity regarding any occupation to the several level of the female employee’s participation
is consider as that sector as well as impact within that industry.
As per the view of ()Hofstede also link
masculinity and
femininity of an
occupation to the level
of female workers’
participation in that
sector and their
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influence in that
industry. In this sense,
the hospitality industry
shows some tendency
towards female values
and the caring culture
of the guest- employee
relationship in
Hofstede also link
masculinity and
femininity of an
occupation to the level
of female workers’
participation in that
sector and their
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influence in that
industry. In this sense,
the hospitality industry
shows some tendency
towards female values
and the caring culture
of the guest- employee
relationship in
Hofstede Cultural Dimension
Hofstede cultural dimension helps in understanding overall culture, behaviour, thinking,
of people of a particular place. Hofstede cultural dimension can help in understanding difference
between culture of all the three countries.
Power Distance
This factor helps in understanding whether power within society is distributed equally or
not. This further helps in understanding whether people accept that power within organization or
within society is distributed unequally. It helps in understanding whether people of a country will
be able to accept unequally distributed power or not (Beugelsdijk and Welzel, 2018). Power
distance index of all the three countries is high so it can be said that people of China, Vietnam,
and Ethiopia accepts that power within organization or within society is distributed unequally.
This further help HR managers to understand whether employees will get influenced from higher
authority or int not and if there is need of bringing changes within overall organizational
structure as per the power distance index. Companies in countries that have high power distance
index mostly have hierarchical structure because people of such countries easily accept
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difference in power and get influenced by high authorities of management that have high level of
power. It can further influence HR strategies as well because HR need to develop strategies as
per acceptance level of employee of unevenly distributed power.
Individualism
Individualism index helps in understand degree of interdependence a society maintains
among its members. It helps in explaining self- image of people in terms of ‘I’ or ‘We’.
Countries that have high individualism index score focus upon looking after themselves and for
their family only. Such kind of people are least interested in society (Bissessar, 2018). Whereas
if this score is lower than that means that it is collectivist society in which people belong to ‘in
groups’ that take care of them in exchange of loyalty. Such kind of people are maintaining long
term commitment to other members of group. Score of this factor for all the three countries is 20
which is extremely low. This means that all the three countries have collectivistic society. This
means that people of these countries take care of each other in exchange of their loyalty. Such
kind of individuals follow societal rules and regulations and in order to maintain overall group
image each individual take responsibility. As all the three countries have lower individualist
index so HR management need to focus upon employees in group when hiring and promotion
take place.
Masculinity
This index helps in understanding whether the society is driven by success, competition
and achievement or society is driven by values of society. It is important for organizations to
understand masculinity index of a country before expanding their business in that country
because it will help them in understand thinking and values of people of that country (Litvin,
2019). Masculinity index score of China and Ethiopia is high that shows that both the countries
have masculinity society where success is driven by competition, achievement and success.
Whereas this score of Vietnam is below average that shows that it has feminine society where
people focus upon working for living. In this society people value equality, solidarity and quality
in their working lives. In such kind of societies, it becomes easier for human resource department
to resolve issues between employees through negotiation and compromise. In Vietnam HR
managers can take decision making by involving employees within it. HR managers of China
and Ethiopia can focus upon providing various opportunities to people of this country so that
they can achieve success as people of these country will easily sacrifice their family and leisure
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in order to prioritise their work. They can readily work late night in order to achieve success.
Whereas HR manager of Vietnam can focus upon enhancing overall wellbeing of their
employees. In order to enhance motivational level of employees they can provide various kinds
of benefits to employees. This comparison of all the three countries will help HR managers to
develop strategies as per goals and things that are paid importance to by employees of a
particular country.
Uncertainty avoidance
This dimension of Hofstede culture mainly deals with the level of stress members of a society. It
also refers the extent to which members of society of different cultures views future and feel
threatened by unknown situations. In regards to China it is found that at 30, China was having
low uncertainty avoidance. Actual situations works or acts as fact of life and al Chinese are
comfortable with ambiguity. Other cultures of people find difficulties or problems in
understanding Chinese language as it has ambiguous meaning (Bilby and et.al., 2020). But in the
context of Chinese people it can be said that they are adaptable in behaviour and entrepreneurial.
By survey it is also found that due to their nature and culture most of the businesses that Chinese
run are small to medium sized and family owned. Whereas, in the context of Ethiopia it is found
that this country and culture has scored intermediate in this dimension. It means people of this
country have are not to the extent to which they feel threatened by future challenges nor have
power to accept they. They try to remain calm, normal and accepting it in normal way.
In regards to Vietnam it is found that it is lower in this dimension and scores 30 in it and it
means behaviours of people of this country has much effective and they are more likely to be
relaxed. But they believe that there should be no more rules than are necessary (Trinh and et.al.,
2017).
Long- Term Orientation
It refers the extent to which societies of different cultures and different countries maintain a link
with their past while dealing with present and future challenges. In regards to China it is found
that it is high in this dimension that means it has pragmatic culture. As per this nature and
approach, cultures encourage thrifts in modern education only because of preparing for the future
and making themselves prepared against challenges. Chinese believe that truth plays a vital role
and truth depends on situation and time as well. They have an ability to adapt changes and
tradition in an effective manner (Zheng and et.al., 2020). This behaviour of flexibility and
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thrilled nature makes them able in accomplishing goals and getting successful results. In this
dimension no score has been specified So it can be said that it requires focusing on this
dimension and knowing about their behaviour as whether they can avoid situation in an effective
manner or not.
Vietnam scored 57 in this dimension that means it is pragmatic in nature as like China. It means
this country and people of this country also believe that truth depends on time as well as
situation. They can also adapt tradition in an easy manner. So it can be said that people of this
country has flexible as like Chinese (Country Comparison on Hofstede Cultural Dimension,
2019).
Indulgence
It is other main dimension of Hofstede culture that refers the extent to which people try to
control their desire and this behaviour and way of controlling on desire also depend on the way
they have been raised. Those people and countries that are weak in this behaviour is called
indulgence and those who have string controlling power are known as restraint culture. As per
the power of controlling Chinas culture is known as restraint that means it has lower power of
controlling desire. People with lower score in this dimension of culture have tendency to
pessimism (Taylor and Zhou, 2019). Retrained societies do not put focus on leisure time and
control on their desire. They also think that their behaviour of controlling desires and not
controlling desires restrained by only social norms. In this dimension also, Ethiopia has got
intermediate score of 46 and there is no specific preference between restraint and indulgence.
This country does not focus on identifying all these behaviours so, it requires focusing on this
dimension for comparing itself with others.
Vietnam scored 35 in this dimension of Hofstede culture that means culture of this country is
restrained as like China. They have more power of controlling leisure activities and desires.
Overall it can be said that culture of China and Vietnam is almost same and people of these
countries and cultures are also adaptive and they can adjust in other tradition (Le and et.al.,
2017). But due to language of China and this country, other cultures of people find difficulties in
adapting this culture.
From the above discussed dimensions of Hofstede culture of three countries China, Vietnam and
Ethiopia it can be said that Chinas culture is better than other 2 cultures. People of this culture or
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country has more power of accepting challenges, adapting themselves as per the changing needs
and requirement.
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REFERENCES
Books and journals
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Bilby, J. and et.al., 2020. Tiers and fears: An investigation of the impact of city tiers and
uncertainty avoidance on Chinese consumer response to creative
advertising. Australasian Marketing Journal (AMJ). 28(4). pp.332-348.
Bissessar, C., 2018. An application of Hofstede’s cultural dimension among female educational
leaders. Education Sciences. 8(2). p.77.
Huang, P., 2020. The making of a modern self: Vietnamese women experiencing transnational
mobility at the China–Vietnam border. Social Inclusion. 8(2). pp.77-85.
Le, A. and et.al., 2017. INFORMATION MARKETING: CULTURAL DIFFERENCES
BETWEEN THE USA & VIETNAM. In Allied Academies International Conference.
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No. 1, p. 29). Jordan Whitney Enterprises, Inc.
Litvin, S.W., 2019. Hofstede, cultural differences, and TripAdvisor hotel reviews. International
Journal of Tourism Research. 21(5). pp.712-717.
Liu, Y., and et. al., 2020. Talent management and the HR function in cross-cultural mergers and
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Taylor, C. and Zhou, J., 2019. How Does Culture Affect International Business Between The
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Trinh, A. and et.al., 2017. Cultural differences in France, Germany, Greece, India, the USA And
Vietnam. Copyright 2017 by Institute for Global Business Research, Nashville, TN,
USA. p.171.
Zhao, H., Teng, H. and Wu, Q., 2018. The effect of corporate culture on firm performance:
Evidence from China. China Journal of Accounting Research. 11(1). pp.1-19.
Zheng, W. and et.al., 2020. CEO Values, Firm Long-Term Orientation, and Firm Innovation:
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Online
Country Comparison on Hofstede Cultural Dimension. 2019. [Online]. Available through <
https://www.hofstede-insights.com/country-comparison/china,ethiopia,vietnam/>
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