Consultancy Report to the Board of Directors of

Greenway Hotel Group.

Module: International Human Resource Management INDU-1130

Assessment 2: Case Study Report

Module Leader: Dr. Scott Tindal

Student Name: Phung Thi Cam Tuyen

Student ID Number: 001261871

Words count: 3040

1
TABLE OF CONTENTS
EXECUTIVE SUMMARY .......................................................................................................... 3

INTRODUCTION......................................................................................................................... 3

I. INTERNATIONAL STAFFING – SHORT AND LONG-TERM STRATEGIES. ............ 3

1.1. Short-term .......................................................................................................................... 3

1.2. Long-term .......................................................................................................................... 5

II. DIFFERENCES IN HR POLICIES AND PRACTICES WHEN EXPANDING THEIR

BUSINESS TO FRANCE ............................................................................................................. 6

2.1. The minimum wage ........................................................................................................... 6

2.2. Trade Union ....................................................................................................................... 7

2.3. Performance Management ............................................................................................... 7

III. THE SOCIO-POLITICAL AND CULTURAL ENVIRONMENT ................................... 8

3.1. Covid-19 pandemic ............................................................................................................ 8

3.2. Brexit .................................................................................................................................. 8

CONCLUSION ............................................................................................................................. 9

REFERENCES ............................................................................................................................ 10

APPENDIX .................................................................................................................................. 12

2
EXECUTIVE SUMMARY
With more than 1000 people, Greenway Hotels Group, Plc. is a significant hotel chain in the UK.
The company recently acquired a small chain of hotels with headquarters in France called "Hôtel
de Charme" as well as it will cover the entirety of Europe in the following ten years. This means
that they will face some challenges. The report will highlight the challenges Greenway confronts,
particularly those using multinational resources, and provide practical ideas to help the business
get through them.

INTRODUCTION
The term "globalization" refers to the interconnectedness and globalization of technology,
production, and communication. In terms of power and control, the globalization age has
transformed many multinational corporations into effective and productive entities that outperform
tiny and developed countries (Barrios, et al., 2005). However, it also faces many challenges, one
of which is the rise of multinational corporations has always required striking the correct balance
between local autonomy among subsidiaries and control of the headquarters (Muratbekova‐
Touron, 2008). The report will begin with short-term and long-term recruitment methods. Next is
a focus on analyzing recruitment and selection issues, and employee relations. Finally, an
examination of Greenway's broader socio-political and cultural differences, in particular, Brexit's
implications for the free movement of regulators between the UK and the Union Europe.

I. INTERNATIONAL STAFFING – SHORT AND LONG-TERM

STRATEGIES.
1.1. Short-term
Greenway may decide to acquire other small hotel groups in other continental European countries,
namely the organization wants to own 120 hotels in the next five years and their 10-year plan is to
provide 250 hotels across Europe if this new venture in France is successful. The implementation
of the company's global human resource plans will present both chances for growth and challenges.
It is undeniable that the operation of multinational companies depends a lot on the quality of
recruitment of human resource managers (Dewin & Gabriel, 2019). The international staffing of
companies is characterized by an ethnocentric orientation, a polycentric orientation, a regiocentric,
and a geocentric orientation (Isidor, et al., 2011). Perlmutter (1969) asserts that businesses
frequently start out with an ethnocentric orientation before progressively switching to a multi-
centered strategy and, subsequently, a geocentric or geocentric policy region as their
internationalization progresses (Perlmutter, 1969). Therefore the ethnocentric” approach is the

3
right direction for Greenway's context to serve short-term goals. The corporation should also adopt
the polycentric orientation combined with ethnocentric, as this will be the most effective strategy
to deploy international staff for the French subsidiary.

First off, while using an ethnocentric strategy, the parent corporation controls all of the subsidiary's
decisions and modes of operation. This indicates that the management staff in the corporate
headquarters of the parent company also holds important positions (PCN). It is not possible to hire
new managers, train them, and then implement them since the Board of Directors anticipates the
recruitment strategy to be put into action within six weeks. Additionally, this strategy enables
management of all activities and strategic choices from headquarters. The management team at the
headquarters frequently plays key roles in both the domestic and international operating systems.
Additionally, they are thoroughly aware of organizational policy and the expertise required at the
headquarters.

Second, huge businesses in nations that are "becoming worldwide" for the first time often struggle
with the same issues that a tiny, newly established multinational corporation does due to a lack of
experience and knowledge in this field (Mayrhofer & Brewster, 1996). Economization must deal
with. Even in the literature that promotes the revolutionary progressive view of a more "senior"
position, a person-centered HR strategy is regarded as appropriate for businesses in the early
phases of internationalization (Scholl, 1989). Additionally, it enables the parent firm to carry out
initiatives that more broadly promote corporate values across the entire organization, extending
horizons and generating chances for professional foreign development.

Finally, to fill the shortcomings of the ethnographic approach, a polycentric approach will be
chosen. As information has been provided, most British personnel do not know French well.
Furthermore, the UK leaves the EU on January 1, 2021, meaning British visitors to France must
now respect the so-called 90/180-day rule (Guardian, 2020). 'Third country' (non-
EU/EEA/Switzerland) nationals whose nationality does not require a short-stay Schengen visa are
free to visit France without a visa application but subject to the rules of stay for no more than 90
days in any 180-day period (Smith, 2021). Bringing workers from the UK to France will take a lot
of time, effort, and expense. Therefore, the company should use middle management in France
and have good English communication ability which will be a more suitable choice. They are
familiar with French culture and work practices. Middle managers have a significant competitive
advantage since they are well familiar with the French business environment and have a thorough

4
awareness of the local market's culture. Additionally, having a strong command of English will
benefit middle management since they can communicate with upper management and help them
comprehend the problem and develop strategies appropriate for international businesses.

Both approaches have certain advantages and limitations. In comparison to direct supervision,
training or instruction of employees in a remote location becomes more challenging. The main
recommendation is that the company should create conditions for the CEO to travel to the host
country more often to easily exchange work and grasp the actual situation of the subsidiary as well
as ensure that the Operation is on track. Besides, executives from the parent nation and their
subordinates could also have cultural differences. Therefore, recruitment and selection are
extremely clear and thorough, middle managers must be guided and communicated about company
culture from the beginning, in addition, senior leaders must also learn about the French company
cultural principles to avoid unnecessary misunderstandings. Moreover, the selection of employees
abroad will limit the commitment of former employees. For employees at the parent company who
want to work in France at an early stage, the company will still create conditions for them to
develop themselves in a new market, provided that they will have to meet the required
qualifications. certain tests on foreign language proficiency as well as expertise. This will help the
company make sure that these employees can do a good job while abroad and that the company's
expense is worth it.

1.2. Long-term
In terms of long-term strategy, Greenway expects to own many hotels across Europe in the next
ten years. There must be a sizable time and financial investment in Greenway's long-term plan.
The likelihood of long-term success in a global setting can be increased by a geocentric approach
(Rudd & Lawson, 2007). Geocentric businesses adopt a global perspective and create procedures
and practices that make the most of their presence in every nation or region on earth. Activities
within a geocentric company are tightly integrated with activities in other nations around the world.
Subsidiaries based in the host nation do not function independently of other corporations. Between
subsidiaries, there is cooperation, interdependence, and communication instead. The strongest
competitive advantage of each country's subsidiary is assessed, and this information becomes the
strategic focus for decisions within that nation. Additionally, Greenway needs to transition from a
short-term ethnocentric approach to a geocentric (long-term) approach where managers have a
thorough understanding of the nation they are in charge of. Because they are so well-versed in the

5
needs of the nation where the subsidiary is located, they are able to suggest tailored business
strategies for each country they work in.

A geocentric manager gains expertise in a variety of business-related topics, including

organizational behavior, business practices, political and legal systems, and many other facets of
conducting business abroad. They then integrate this knowledge into their business strategy and
cross-cultural interactions to forge enduring bonds and find solutions that aid all entrants in the
future. Because they are in the same area, nations can easily communicate with one another to
develop a standard regulation that is appropriate for the European region.

Of course, there are some drawbacks to using a geocentric strategy. Despite being in one European
region, there are numerous dialects. The language barrier is thus evident. Greenway simply hired
an interpreter to help the manager and make sure that he or she has a strong commitment to the
company to not leak confidential information in order to resolve the language barrier. It is
unnecessary to learn many foreign languages, and the likelihood of success is low, due to the
extensive management in the European region. Furthermore, if the particular issue is not resolved,
developing a general mode is extremely challenging. To accomplish this, Greenway in the UK
should establish standard operating procedures (SOPs) for the entire Greenway, as SOPs will vary
from region to region and country to country when applied. A manager chosen from a specific
region might also lack experience working abroad. This leads to the last issue, which is the
exorbitant cost of hiring talent in the eurozone because hiring a manager to work in a global setting
necessitates that person possessing certain skills and knowledge. really high. Greenway goes back
to the initial issue of limited capital to address this. In order to address its own problems, Greenway
should concentrate on raising money to submit funding requests to outside investors and
organizations. The remaining issues in Greenway are easily resolved once the capital is fixed.

II. DIFFERENCES IN HR POLICIES AND PRACTICES WHEN

EXPANDING THEIR BUSINESS TO FRANCE
2.1. The minimum wage
The minimum wage is the lowest amount of pay per hour to which a worker is legally entitled,
with the exception of self-employed and volunteer workers (Bazen & Nicolas, 1997). The French
minimum wage has increased by 1 point 81 percent as of January 1, 2023 (France, 2023). The
minimum hourly gross wage has increased to €11.27, which on a weekly basis of 35 hours equals
a salary of €1,709.28 per month (France, 2023). When agreed upon, overtime pay is equal to at

6
least 110 percent of the regular wage. If there is no agreement, overtime pay must be 150 percent
of regular wages for the first eight hours and 125 percent thereafter (Bondless, 2022). According
to VisitBritain, the UK's minimum wage for the hospitality sector is £11 point 19 per hour, with a
minimum workweek of 37 hours and a maximum of 48 hours (Visitbritain, 2022).

According to the minimum wage laws of each nation, it can be seen that employees in France have
less time to work but more time off than employees in the UK. Therefore, for employees in these
two nations, senior management must use appropriate compensation and reward systems. In each
nation, workers adhere to the labor laws regarding hours of work and pay in that nation.

2.2. Trade Union

In the UK, there are 60.5 million union members as of 2015, or about 25% of all employees.
However, according to French statistics for 2013, only about 2 point 6 million people, or about
11%, are members of a union. (connexionfrance, 2023)

The French public sector, where about 15% of workers are unionized, has much stronger trade
unions than the private sector, where only 5% of workers are unionized (connexionfrance, 2023).
Since at least the middle of the 1990s, according to the ETUC, employee unionization has
consistently been higher in the UK than in France. But the French unions are responsible for the
outcomes. On the other hand, modern trade unions in France are very successful at organizing
workers and occasionally even influencing and changing government policy. This was true despite
low membership, internal strife, and rivalry between the different unions. (connexionfrance, 2023)

Greenway must be extremely delicate and mindful of workers' interests, it is concluded. If the
business wants to avoid continual rights protests, it needs to pay closer attention to its staff.

2.3. Performance Management

In both developed and developing nations, performance management in some form is now a
common practice in law enforcement (Maillard & Savage, 2012). An important factor affecting
employee evaluation in France is the vast power gap. The elite structure of France frequently has
an impact on performance managers there. For instance, the HR PM will be more positive because
they have higher expectations and a priori, if the individual being evaluated has a more unique
background from the French perspective and is ranked nationally. When the evaluator and the
person being evaluated come from similar higher education backgrounds and social classes, this

7
effect is amplified. The UK differs in that managers there place a higher value on experience and
demonstrable individual skill performance. The management approach that objectives frequently
use as the foundation for assessing potential performance indicators, therefore, seems biased in
this situation. In the UK, culture will give immigrants more influence over politics.

To fix this and prevent bias in PM, the company culture must be encouraged to move toward a
low-hierarchical culture where everyone is treated equally at work.

III. THE SOCIO-POLITICAL AND CULTURAL ENVIRONMENT

3.1. Covid-19 pandemic
The world is currently experiencing a severe socioeconomic crisis and psychological stress due to
the current coronavirus pandemic (COVID-19). Although it has had a negative impact on the
economy, the service sector—particularly the hotel industry—has been particularly hard hit. It has
a negative impact on employees' mental health because it makes them feel more insecure and
makes them believe they are unemployed. (Khan, et al., 2021)

Without customers, hotel chains are forced to fire tens of thousands or millions of workers (Goh
& Baum, 2021). Everything is still in control almost three years after the covid pandemic first
emerged. Global immunity to COVID has begun to develop among people worldwide. The most
popular tourist destination in the world is France, and this summer (WELFRINGER, 2023). In
France, mountainous and rural regions currently account for more than 35% of the market,
according to the French Ministry of Foreign Affairs (2022). As Greenway in France transitions to
the boutique model, this is a benefit for the company. As a result, Greenway France has a fantastic
chance to grow.

3.2. Brexit
As was already stated, Brexit presents a challenge for Greenway as it considers establishing a hotel
chain in Europe. Brexit is a vote against globalization, which has harmed UK relations and trade,
lost many of its benefits, and possibly increased the disadvantage of a positional approach.
varieties (Manyika et al., 2017). This means that neither British nationals nor British businesses
will be able to hire better and more affordable labor from other EU nations, which will limit their
ability to cooperate with businesses in the EU. EU citizens won't be able to move to the UK to live
and work without difficulty, and vice versa and Costly, according to Greenway UK. Hotel chains
in Greenway should therefore prepare travel documents for foreign-traveling managers.

8
CONCLUSION
The report has analyzed the short-term and long-term recruitment strategy of Greenway hotel
chain. At the same time, the article has raised the pros and cons of each approach and then made
the most appropriate and effective recommendations for that time. Next is a comparison of the HR
problem between the UK and France that the company faces. Finally, the socio-political and
cultural environment when a foreign company enters a new market, specifically analyzing the
Covid-19 issue at that time and Brexit.

9
REFERENCES
Barrios, S., Görg, H. & Strobl, E., 2005. (2005). Foreign direct investment,
competition and industrial development in the host country.. European Economic
Review, 49(7), p. 1761–1784.
Bazen, S. & Nicolas, S., 1997. Is There a Negative Effect of Minimum Wages in
France?. European Economic Review, 41(5), pp. 723-733.
Bondless, 2022. Bondless. [Online]
Available at: https://boundlesshq.com/guides/france/hours-of-work/
[Accessed 04 01 2023].
connexionfrance, 2023. Connexion France. [Online]
Available at: https://www.connexionfrance.com/article/Mag/French-Facts/UK-
Trade-unions-have-more-members-than-France
[Accessed 04\ 01 2023].
Dewin, S. A. & Gabriel, S., 2019. Recruitment and Selection Practices on the
Performance of ZESCOEmployees in Zambia. Texila International Journal of
Management.
France, B., 2023. Business France. [Online]
Available at: https://www.welcometofrance.com/en/increase-of-the-minimum-
wage-in-
france#:~:text=On%20January%201%2C%202023%2C%20the,weekly%20basis%
20of%2035%20hours.
[Accessed 04 01 2023].
Goh, E. & Baum, T., 2021. Job perceptions of Generation Z hotel employees towards
working in Covid-19 quarantine hotels: the role of meaning work.. International
Journal of Contemporary Hospitality Management, 33(5).
Government, 2022. Gov.uk. [Online]
Available at: https://www.gov.uk/guidance/travel-to-france-for-
work?fbclid=IwAR3YQx70GHUyGTdL4h1gjtG5xPJiajWIHhUm50n7LnJNwLq5
D9Gj4yaoQg0
[Accessed 22 12 2022].
Guardian, 2020. The Guardian. [Online]
Available at: https://www.theguardian.com/politics/2020/dec/13/brexit-what-
change-1-january-2021-people-uk
[Accessed 20 12 2022].

10
Isidor, R., Schwens, C. & Kabst, R., 2011. Human resource management and early
internationalization: is there a leap-frogging in international staffing?. The
International Journal of Human Resource Management, 22(10), p. 2167–2184.
Khan, K. I. et al., 2021. The Effect of COVID-19 on the Hospitality Industry: The
Implication for Open Innovation. (2021). Journal of Open Innovation: Technology,
Market, and Complexity, 7(1), p. 30.
Maillard, J. d. & Savage, S. P., 2012. Policing and Society: An InternationalJournal
of Research and Policy. Comparing performance: thedevelopment of police
performancemanagement in France and Britain, 20(4), pp. 363-383.
Mayrhofer, W. & Brewster, C., 1996. In praise of ethnocentricity: Expatriate policies
in European multinationals. The International Executive, 38(6), p. 749–778.
Mossolly, M., 2015. Global Projects: A Conceptual Review on Execution Attitude
in Multinational Corporations. Procedia Soc Behavior, Volume 194, pp. 125-133.
Muratbekova‐Touron, M., 2008. From an ethnocentric to a geocentric approach to
IHRM. Cross Cultural Management: An International Journal, 15(4), pp. 335-352.
Perlmutter, H., 1969. The Tortuous Evolution of the Multinational Corporation.
Columbia Journal of World Business Studies, 4(1), p. 9 – 18.
Rudd, J. E. & Lawson, D. R., 2007. Communicating in Global Business
Negotiations: A Geocentric Approach. Los Angeles: SAGE.
Scholl, R., 1989. “Internationalisierngsstrategien” in Macharzina. Stuttgart:
Poeschel.
Smith, Z., 2021. FrenchEntree. [Online]
Available at: https://www.frenchentree.com/brexit/eu-90-180-day-rule-heres-how-
it-works/
[Accessed 22 12 2022].
Visitbritain, 2022. Visitbritain. [Online]
Available at: https://www.visitbritain.org/business-advice/national-minimum-wage
[Accessed 04 01 2023].
WELFRINGER, L., 2023. France24h. [Online]
Available at: https://www.france24.com/en/tv-shows/france-in-focus/20220722-
france-the-place-to-be-for-many-holiday-goers-the-summer-will-be-french
[Accessed 04 01 2023].

11
APPENDIX

12
13
14
15
16
17
18