BUS3011: Report on HR Issues of Business Shift to China

This report examines the HR-related issues faced by Foster and Son Northampton LTD, a small manufacturing firm, due to a partial shift of its business operations to China. It explores the challenges and opportunities associated with this shift, including cross-cultural comparisons between the UK and China, specifically focusing on employee relations, leadership, and professional management of employees. The report utilizes Hofstede's cultural dimensions model to analyze the impact of cultural differences on the business, including power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation. It provides recommendations for addressing these challenges and offers insights into how the company can navigate the complexities of international business expansion, considering factors such as language barriers, employee relations, and cultural nuances to ensure successful operations in China.

BUS3011HR-related
issues

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Partial shift of business from Northampton to China......................................................................3
Cross cultural comparison ..............................................................................................................4
Hofsetede's Culture's .......................................................................................................................5
Recommendation ............................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
Books & Journal:..........................................................................................................................10

INTRODUCTION
In business sector, issues are bound to occur in at every aspects and it which are needed to
be solved. With changing period of time, business practices, activities, operations changes at rapid
scale depending upon market situation & trends (Bogodistov, 2017). Main aim of this report is to
understand and examine issues faced by due to partial shift of manufacturing. Manufacturing and
shifting business operations into other countries is a difficult procedure & time consuming. Foster
and Son Northampton LTD, a small manufacturing firm headquartered in U.K. Firms deals in
manufacturing of shoes and products and is shifting their business to other countries. This report
comprises Hofsetede's Culture and different issues faced within business sector.
MAIN BODY
Partial shift of business from Northampton to China
Business is changeable and it has been also seen that operations as well as activities
changes with period of time. When business shifts from one country to another, there re many huge
changes and measures which are being adopted by enterprises. It is essential to properly focus on
these partial shifts so that decisions making is carried out in proper manner. In country like China,
there are most of U.K(Dinh, 2020). Businesses that are operating their businesses activities in
country. In small businesses, expansion is being focused by them so that survival increases for
longer period of time. United Kingdom and China are two different countries & accordingly
business operations are operated. In context of Foster and Son Northampton LTD, they are being
likely to shift their businesses to China during this pandemic situation. The partial shift of business
arises with purpose of expansion of business activities, operations, gaining more profits &
increasing goodwill. In case of SME business, it is easier for them to shift their functions to other
countries due to small operations. Thus, culture has a deep impact on SME'S when partial shift is
being done so comparisons, opportunities & threats of concept is further explained as follow-
Cross cultural comparison
In HRM, there are many issues which occur and impact directly upon business activities &
others areas. Culture are important which are needed to be focused when developing or expanding
business operations into different foreign countries. This is because success & growth of enterprises
depends upon culture, society, people, etc. It is because products & services are provide within
cultures, to people & community. Culture of Vietnam, Ethiopia & China are different which are
discussed with these given issues which are faced by both countries & are explained below-
Employee relations-

Employee relations is defined as process of managing positive relations with employees to
develop relationship. It is not easy to develop employee relations within entity because of difference
in opinions, thinking or way of perceptions (Favaretto, 2019). So, when ER is focused by
businesses benefits are measured by both parties on basis of which relations are being established.
Vietnam
In this, employee find it easy to develop employee relations as because of which effective
communication and using of English all over country. But main issue faced during this process is
that politics is rolled out (Foss, 2017).
China-
In China, employee relations are difficult to maintain because of difference in languages
which leads to time consuming. Due to this employee retention period is for short interval. Due to
this issue it is difficult for HRM to carry out their activities.
Leadership and management-
Leadership refers to influencing of others decision to get work done whereas management is
defined as set of principles and functions which help in achieving organisational goals.
Vietnam & Ethiopia
In this country, leadership and management approaches are completely different from
China as because most of methods are proposed by superiors on basis of situations and benefit
factors. In this HRM issue, it is not possible for HR to properly make effective decisions (Li,
2018).
China
In China, issue faced by HRM of leadership management is that it is difficult to use
appropriate leadership & management Approaches due ton fast changing market situations which
makes it difficult for human resource management to provide suggestion to new or old employees.
Professional management of employees-
It is another issue faced by HRM in which it in country such as Vietnam, Ethiopia,
professional management of employee depend upon their position & whereas in China professional
management of China is not static & that leads to conflicts or issues. It is important to manage this
issue because professional management of employees leads to better productivity, positive
outcomes.
Therefore, it has been examined that it is crucial to have appropriate knowledge regarding
these issues or problems so that it is easier for organisations to carry out HRM practices as well as
procedures in most effective manner. In relevance of selected firm, it is essential for them to
improve & develop their HRM department and provide effective solutions to same departments.

Hofsetede's Culture's
According to this Hofsetede' Culture's model, it states and focuses on cross cultural
communication and shows impacts of society's culture on business (Liboni, 2019). It is an effective
model which is needed to be consider by organisation who are expanding their activities into
different countries. Through proper analysis of this model , it is easy to get information and well
aware about different cultures of a particular country. This is beneficial for enterprises to use this
framework so that they are able to make decisions regarding how activities or operations can be
carried out in foreign countries. So, this model comprises of several elements which are crucial to
be critically analysed so that it is easy to examine about threat or opportunities that can be
encountered by firm while shifting their manufacturing into China. Thus this model is further
explained below-
Power Distance-
This element of model shows that in society individuals are not treated as equal. So, this
dimensions shows about attitude & behaviour towards inequalities. PDI in both chosen country is
different for example- in Vietnam. PDI is 70 whereas in China PDI is high (Mladenović, 2017).
So,when shifting manufacturing businesses to other country, this factor is needed to be considered
as priority so that problem or issue does not occur in future period of time.
Opportunities- China
In this, it is an opportunity for chosen entity when running business in country as because in
United Kingdom has low PDI which means that inequality is not acceptable by people at higher
scale. In context of Foster and Son Northampton LTD, it is also opportunity for them as they are
shifting manufacturing to China like they can equal roles & benefits are provided to both country's
suppliers, employees, which leads to increase of goodwill & better output.

Threat
Main threat of this dimension is that in both countries inequalities might be accepted
because of language barriers. It can directly impact upon selected organisation activities or
operations. Thus, due to this language barriers inequality might lead to major problems in
manufacturing processes of business.
Individualism-
In this dimension it shows about degree of interdependency in a country that is managed &
maintained by society. Other dimension is collective in which society supports their members to
achieve success or growth (Nguyen, 2017). Both these factors have deep impact on business sector
employees get affected at higher scale. In relevance of selected there are various threats and
opportunities which are faced & are discussed below-
Opportunities- Vietnam, China or Ethiopia
In relevance of chosen firm their has opportunity in Vietnam & Ethiopia both have have
score of 20 in within collective society. Whereas in China as collective degree is too present & it is
easy for company to have proper control over subordinates &maintains discipline.
Threat
Main threat for Foster and Son Northampton LTD is that due to more collective members in
China, it is not possible for selected entity to assign new projects to employees who comes under
collective category (Nguyen, 2017).
Masculinity-
In this dimension it reflects about extent up to which society is being driven by
competition, willingness to achieve something, success growth. Moreover, it reflects the division of
role or responsibilities between men and women. It is essential for business who are shifting their
operations to other country to measure this factor so that resources are activities are being carried
out accordingly. Ethiopia has 65 with Masculine society and Vietnam has 45 score with feminist
society on this dimension .
Opportunities- China
It is an opportunity for selected company, that they can in China rate of Masculinity is 66
which shows that male mostly are present in business sector and are driven to success or growth. It
is an opportunity for chosen entity to partially shift business as this can leads to accesses of
resources in country in most appropriate manner. Whereas in other country too masculinity is score
is high which leads makes it easy for chosen firm to operate properly.
Threat-
Main threat of this dimension is that in both countries females are also being main reason
for success and growth of business are females. Dominating them in business might leads to

negative goodwill in market & also leads to avoiding of employment legislation. It directly leads to
higher risk & threats to business.
Uncertainty avoidance-
In this dimension of Hosftede's culture dimension model, uncertainty avoidances focuses on
extent or degree up to which society deals with level of stress that faces with future situations that
are not known. In reference of selected firm, they should focus on this uncertain situations which
leads to elimination of risks. In society, uncertainty avoidance is required to measure so that
decisions are taken properly.
Opportunities- China
Main opportunity of this dimension in context of Foster and Son Northampton LTD is that
in Ethiopia with score of 55 & Vietnam has score of 30 in which society or members of country do
not pay much attention on future uncertain situations & keep working day to day which is beneficial
for company as it leads to low stress & employees can produce higher productivity. Whereas in
China also score of uncertain avoidance is 30 which is because society in country like to work
comfortable without worrying about future which is also advantage for chosen firm because through
this, subordinates are able to manage & handle assigned tasks more efficiently. While business is
shifting partially in China, company is able to increase their current sales ratio easily (Rojo, 2020).
Threat
In context of all three countries, it is threat for business that with low score of uncertain
avoidances can negatively affects chosen company overall organisational structure because in
business it is important to be well aware about future situations are to be prepared for future
uncertain situations so that risks or problems are minimised at larger level.
Long term orientation-
This is another dimension in which it reflects that degree up to which country or culture
can adapt the situations. It also two types of culture which are normative and pragmatic orientation.
In relevance of China they have pragmatic orientation whereas in Vietnam score of this dimension
is intermediate which is 57 with also pragmatic culture (Singh, 2020).
Opportunities- China
In relevance of selected company, they have opportunity of investing in China as through
this they are able to make decisions through adapting of traditions or modern situations. Whereas in
as the score moderate, both traditions & modern situationist are used depending upon market
change. It is beneficial for enterprise to keep and follow changes with flexibility of market.
Threat

Biggest threat to Foster and Son Northampton LTD is that as they deals in shoes
manufacturing, which depicts that trends and customer behaviour changes at frequent level in
retailing industry. So, investing in China might leads to cost expensive procedure for chosen SME.
Indulgence
It is last dimension in which reflects that degree up to which individual try to manage or
control their desire or wants. It has also some threat & opportunities which are discussed below-
Opportunities- China
Main opportunity of for company is that in China as society is restraints, and score is low
which is 24 in this dimension. This is beneficial for selected firm as employee of country do not
demand for much wages or other benefits as they have control over their demands and impulses.
Whereas in other countries of Vietnam & Ethiopia both have low score culture of dimension
(Bogodistov, 2017).
Threat
In this, threat for company is that due it also shows demotivation of people and that can
impact upon their SME at wider context (Dinh, 2020).
Recommendation
Therefore after examining of above matter, it has been seen that it is essential for selected
company to have appropriate knowledge of this framework or model on basis of which it is easy for
them to target specific country for partial business. It is necessary to be aware about these business
environment and culture so that goals as well as objectives are achieved in most effective manner.
Moreover, there are some recommendations which are discussed below-
It is recommended to Foster and Son Northampton LTD that as they are SME, they need to
conduct proper market analysis so that it is easy to choose a target market appropriately.
Another recommendation to selected firm is that to make effective decisions, it is necessary
to be aware about culture of another country in which partial business is being operated so that error
or problem do not occurs.
Further it is also recommended to firm that to achieve objectives in period of time, it is
crucial for them to have proper HRM so that issues does not arise and strategies are implemented
effectively.
Moreover, it is too examined that SME'S requires financial as well as physical resources so
when shifting of business resources are used in most efficient manner.
After analysis of above explained recommendation, it is seen that these are required to be
adopted by selected entity so that improvement & decisions are taken accordingly. Through
properly focusing on these recommendations effective output are likely to be achieved.

CONCLUSION
After a brief analysis of above essay, it has been stated that HRM issues are being faced at
every aspect of business. It is necessary for organisations be aware about these issue so that
decisions are made properly. So, discussions have been made about issues faced by human resource
management, culture comparison & Hofstede's culture. Thus, it has been evaluated that it is
necessary to have proper market knowledge and analysis on basis of which it is easy to choose a
specific country for business. Moreover, uncertainties are bound to be occur in enterprises so
opportunities & threat of partial shift of business is needed to be undertaken. So, when improving
business and HRM issues are important which need proper evaluation & solution.

REFERENCES
Books & Journal:
Bogodistov, 2017. Ideological shift and employees’ relationships: evidence from Ukraine. Baltic
Journal of Management.
Dinh, 2020. Technical efficiency of small-scaled manufacturing enterprises in six different sectors
in northern Vietnam.Management Science Letters,10(14), pp.3433-3444.
Favaretto, 2019. A Software to Detect OCC Emotion, Big-Five Personality and Hofstede Cultural
Dimensions of Pedestrians from Video Sequences preprint arXiv:1908.06484.
Foss, 2017. Fifteen years of research on business model innovation: How far have we come, and
where should we go?.Journal of Management,43(1), pp.200-227.
Li, 2018. China's manufacturing locus in 2025: With a comparison of “Made-in-China 2025” and
“Industry 4.0”.Technological Forecasting and Social Change,135, pp.66-74.
Liboni, 2019. Smart industry and the pathways to HRM 4.0: implications for SCM.Supply Chain
Management: An International Journal.
Mladenović, 2017. Cross-cultural dimensions influence on business internationalization by soft
computing technique. Computers in Human Behavior,75, pp.865-869.
Nguyen, 2017. Business reforms and total factor productivity in Vietnamese manufacturing. Journal
of Asian Economics,51, pp.33-42.
Nguyen, 2017. Business reforms and total factor productivity in Vietnamese manufacturing. Journal
of Asian Economics,51, pp.33-42.
Rojo, 2020. Hofstede's cultural dimensions as the explanatory framework for performance issues
during clinical placement: A mixed methods study.Nurse Education Today,94, p.104581.
Singh, 2020. Green HRM: The Perspectives and Concerns. Sustainable Resource Management
through Innovative Management Practices, p.1.
Tregaskis, 2019. Multinationals and skills policy networks: HRM as a player in economic and
social concerns.British Journal of Management,30(3), pp.593-609.