ESSAY

International Human
Resource Management
INDU-1130
Dang Le Phuong Nhi
001261364
 Introduction

This report is presented as a member of the HR consulting group, with the goal of advising Greenway on
the best approach to its internationalization plan by acquiring a small hotel chain in France to successful
support for short-term and long-term goals and recommended for recommendations and advice to the
Board of Directors of Greenway Hotel Group, Plc. The report has three parts that need clarification. The
first part presents a long-term strategic approach to resource their management team in the French
subsidiary. Second, the next section will examine the differences in HR policies and practices when
expanding business activities to France, namely pay & reward. The final section will analyze the broader
socio-political and cultural circumstances that the board should consider, specifically the impact of
Brexit.

I. Short and long-term strategies

For Greenway's internationalization plan, which is expanding across Europe, has brought many
opportunities for development, but also brought many challenges, and one of the important challenges
is finding out reasonable international human resource strategy for the company.

To achieve the goal set out by Greenway, the most reasonable strategy is given that is the long-term
regional orientation strategy and the short-term ethnocentric strategy. An international company is
viewed from the standpoint of the home nation from an ethnocentric approach. This is the situation
where the company feels that its values are superior to those of its subsidiaries in host countries (Kucza
& Gebauer, 2011) (Kucza, G., & Gebauer, H. (2011). Global approaches to the service business in
manufacturing companies, Journal of Business & Industrial Marketing, 26 (7), 472–483.). Regiocentric is
an approach found in international firms where host-country nationals manage the subsidiaries and co-
ordinate operations on a regional basis. In this sense, there is local autonomy for day-to-day decision-
making and regional control over strategic aspects of the subsidiary businesses. However, the top jobs at
head office are dominated by parent-country nationals (Heery & Noon, 2008) ( Heery, E. and Noon, M.
(2008) “A dictionary of human resource management,” pp. 5–20 )

About the proposed ethnographic strategy for the short term because it would move managers with
rare technical skills and industry specific knowledge sent from headquarters to the host country to do
the job. This helps avoid wasting time tranning when recruiting managers (Hjartardóttir and Lundeborg,
2017). When the newly acquired hotel company had to open within a six-week window, it resolved
Greenway's timeline. The transfer of various business and management practices is further ensured by
cultural similarity with the original organization (Daszkiewicz & Wach, 2013). For startups or businesses
that are in the beginning phases of their lifecycle, when headquarters workers are in charge of
overseeing subsidiaries, an ethnographic strategy is typically employed. The MNCs eventually adopted a
geocentric strategy after switching to a multi-centre strategy and hiring only locals from the host
countries for management positions (Keegan & Green, 2012). Given that it provides a benefit that
complements both the company's short- and long-term aims, this option is seen as the ideal one for
Greenway. In contrast, Greenway's long-term strategy, which is regionally oriented, regionally centered
knowledge of the international market is accumulated at a high level (depending on the dynamics,
resources, and related needs), and this gives them the ability to handle the economic, cultural, and
political aspects of challenging markets. They will be forced to create uniform, global marketing mixes as
a result of cost and organizational demands, which will reduce their prior willingness to customise their
marketing mix (Gould, 2002). With this strategy, it meets Greenway's long-term goals of 120 hotels in 5
years and 250 hotels across Europe within 10 years.

These suggestions do, however, have have drawbacks and difficulties for Greenway. When it comes to
the ethnocentric strategy, it works best when sales in foreign markets account for a modest portion of
the total sales of the business. If these tactics are unsuccessful, the business can easily absorb the
associated losses (Kucza & Gebauer, 2011). Lack of management experience in overseas operations,
mutual mistrust between senior managers in the parent and host countries, potential costs and risks,
population attitudes, political sensitivities related to the host country's performance, the absence of an
international monetary system, the widening gap between rich and poor countries, host country
complaints with the mother country tend to be distributed more evenly than profit Language and
cultural obstacles, employee nationalism, and employee obsession can all substantially inhibit
geocentrism (Millmore et al., 2007). These are some of the issues that cannot be resolved over time
using an ethnographic technique. It can prevent MNEs from adopting a global strategy for a locally
focused strategy by establishing a sort of federalism at the regional rather than national level and by
changing career opportunities from the national to regional level (Dowling et al., 2013). In the long run,
it can be said that a region-focused strategy can significantly alter the culture of the Greenway Hotel
Group, as the regional manager will run the business in their own way and is likely to have negative
effects such as losing control of the subsidiary to the company in the host country and causing
numerous conflicts between the two parties regarding business strategies.
 II. Challenges of managerial staffing

Regarding the long-term ethnocentric approach, the risks and difficulties associated with hiring foreign
workers are unavoidable since comprehending the cultural differences between the home nation and
the host country is crucial. risk of culture shock One of the challenges that Greenway employees may
experience is culture shock. Culture shock is a feeling of embarrassment about how other people behave
and view different lifestyles in a setting that is foreign to one's own. The sensation of ambiguity,
perplexity, or confusion that people go through when they move to a society or culture that is different
from their own is referred to as culture shock (Kotler and Keller, 2015). The sensation of culture shock is
now regarded as perfectly natural and even desired because it is thought to be a crucial component of
an employee's successful transition process. Stress, anxiety, and uncertainty may be felt by the victim
depending on how severe the shock was. It may, at worst, make it difficult for overseas workers to
integrate into a new society. Instead, they could isolate themselves socially or professionally, give up
their jobs, and perhaps leave early (Marx, 2001). A possibility of culture shock exists. Failures abroad,
early exits, and poor performance are all increased. It is not, however, unavoidable. Organizations might
begin by choosing the best candidates based on criteria like a high level of control (Lieberman et al.,
2007). As a result, it is certain that Greenway will be able to support its staff even more by giving them
prior cultural and linguistic training. Finally, expats can quickly move from culture shock to cultural
intelligence by offering opportunities for interaction with foreigners and assisting them in transforming
stressors into growth opportunities. For the training program to be as effective as possible, Greenway
should also take the problem of involving families into consideration. Considering that family support is
essential for success and encourages foreigners to relocate with them (Gong et al., 2013). Of course,
Greenway will support in terms of organization as well as costs for foreign employees and their families,
in parallel, the level of support for that organization will be proportional to the level of commitment to
the progress that the company has. Set targets for foreign employees. At that time, it will create a
motivation for foreigners, it will contribute to promoting the ability to adapt as well as modifying
behavior which will take place more smoothly and quickly.

III. HR functions

The different approaches to reward evident in different countries - and different reward contexts in
those countries - suggest that this is a particularly challenging area in the international and comparative
contexts. Therefore, the factor of difference in salary and bonus is one of the important HR positions
that Greenway should consider. Compensation and benefits include all benefits an employer offers to its
employees, including financial benefits such as wages, pensions, paid leave and sick pay; and unpaid
benefits such as assessment, flexible work, development opportunities, and ongoing training ((Marsden
& Belfield, 2010) Wages are often seen as a sharper tool for direction and motivate employees rather
than a series of options provided by benefits and perks.Rewards are a good motivational method that
companies use to reward their employees for achievement and The company sets their goals and
delegates rules to their employees so that they can follow and achieve the set goals This ensures that
employees are fully aware rules and goals and they get rewarded for their performance All employees
follow a common reward system as it is a fair system (Brown & Purcell, 2007)

The best recommendation for Greenway is to use the French bonus scheme. Because Britain can be said
to be a deregulated economy and France a more coordinated social market economy, French firms use
significantly more incentive wages, and in particular, wages. worthy (Marsden & Belfield, 2010). This will
make Greenway employees feel recognized for their efforts and efforts, it will indirectly affect the
attraction, motivation, engagement and retention of their employees, especially high-potential and key
managers. The effect of organizational variables is stronger in France than in the UK, suggesting that
French managers are more aware of the need for incentives to match work organization (Marsden &
Belfield, 2010). Especially in a work environment, when given a variety of incentives, employees feel
appreciated by both management and colleagues and show them that their achievements are
recognized and appreciated. In the UK there has been a productivity crisis and it is safe to say that the
rate of giving bonuses is still poor. A staggering 85% of employees are not engaged or feel disengaged.
positive attachment (O'Neal, 1992).

IV. The socio-political and cultural environment

In addition to the human and cultural limitations mentioned above that Greenway will encounter in the
process of internationalization, socio-political issues are also factors to consider. The United Kingdom
will formally quit the EU single market in January 2021. Following a two-year transition phase, the EU
and the UK signed the Agreement on Cooperation Agreement on December 30, 2020, even though
Brexit was formally proclaimed after the referendum in June 2016. Trade Partnership (TCA), which
provides preferential trade agreements between the EU and the UK in both the goods and services
sectors (Bailey, 2021). The tourism sector in the UK and Europe is impacted by changes to immigration
laws and freedom of movement. Following Brexit, many small firms will be forced to reconsider both
their recruitment tactics and skill sets due to the end of free movement and harsher immigration laws.
In fact, data suggests that organizations are experiencing a skills shortage (Percy, 2019). To work for
longer than three months, UK citizens need a long-stay visa and work permit (such as a green card).
Those seeking temporary employment must have a work visa (Fabbrini, 2020). It becomes more difficult
for businesses in low-wage industries to find candidates after the termination of freedom of movement.
Low-wage work visa programs are notoriously challenging to regulate and frequently expose workers to
exploitation and abuse (Sumption, 2022). Therefore, Brexit has a significant impact on increasing costs
and efficiency when Greenway expands from the UK to France. In addition, the difference in working
culture is also a factor worth paying attention to. Compared to France, working interactions are
substantially less hierarchical in the UK. Employees in the United States frequently address their boss by
name, although in France this is more common among startups and small businesses. The working
environment is generally less formal than it is in the UK (Ibanez, 2021). In Enterprise France, the dynamic
between a CEO and an employee differs in both nations. For instance, it's typical for CEOs and their staff
to spend time playing tennis or golf together in the UK. In French business culture, things are very
different; depending on their position within the company, employees are required to maintain a certain
level of distance and are treated more like subordinates (Heinze ,2019). Greenway has to stand between
these two differences, making the choice is difficult, but with the recommendation that Greenway
should keep the British working culture that is close to employees, because of this working style will
bring more efficiency to multinational companies like Greenway hotel.

V. Conclusion

In light of the aforementioned analysis, Greenway should adopt a long-term approach that incorporates
ethnocentrism and regionalism in effort to have the best possible impact on the neighborhood. Prior to
starting the operation process, Greenway should also set up training and assistance for experts in order
to reduce the dangers that may develop and improve the results that have been planned. Additionally, it
might be claimed that Greenway cannot disregard the effects of Brexit and cultural differences as they
provide challenges to the company's plans to merge with and purchase the French hotel chain Hôtel de
Charme.
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