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05/11/2012

 International HRM


 

Executive Summary

The competitive nature of the fast food market means that McDonalds brand exert substantial pressure on its suppliers and might have unenthusiastic collision on McDonald’s workers’ human rights, compensation and working condition in McDonalds operation in Hong Kong. McDonald’s can be said to have pioneered and refined of process and procedure, appear that most aspects of McDonald’s franchise system have been emulated by the competitors. The fast food industry at the present extends throughout the world have roots in the United States. The geocentric strategy can be used in accordance to the geocentric status for Hong Kong employment base, attempting to poise global integration and confined responsiveness of McDonalds in Hong Kong, geocentric approach would be finest because of scholastic standards. Thus, polycentric and regiocentric strategies would be second because there only satisfy McDonald’s limited openness principle. Geocentric because overseas subsidiary toward HK fast food industry employment will of mature state in lieu to training and development McDonalds then might be autonomous as well as in respect with international human resource along with knowledge management and admission to market with dependence on McDonalds parent group, McDonalds US.

1. Introduction

1.1 Purpose

The need to understand and recognize through research and core readings whether there is a need for Hong Kong fast food outlet (McDonalds HK outlet) to amicably adopt certain strategies relating to staffing like for example, ethnocentric, polycentric, and geocentric approach to fast food outlet staffing. To basically find supporting details that will provide back-up if McDonalds in Hong Kong should have to execute and put applications on ethnocentric, polycentric, regiocentric or geocentric approach to employee related staffing placing value to the international human resource management. 

1.2 McDonalds case

Hong Kong’s fast food industry face issues on its staffing approach and the possible means of putting recent developments in the HRM is tough one. McDonalds anticipate persistent globalization and innovation wherein ethnocentric and or geocentric approach was least an option in Hong Kong since, they have this intermediated workforce meaning, HK based firms are not that strict in terms of cultural background of employees, and is not comprehensively focused in modifying its laws and regulations and does not put necessity to the issues of ageing employment and retirement mode. Henceforth, ‘fast food indication adhere to the globalization of markets wherein HRM activities are in a way affected, there creates past paced existence and driving the McDonalds people to have a better mindset on how HR staffing in Hong Kong strikes recently and with reflection to discussions and research made within fast food industry wherein McDonalds has been at the center consideration’ (Royle and Towers, 2002).

2. Body of the report

2.1 What is ethnocentric within McDonalds?

Ethnocentric approach can be commonplace in preliminary business enterprise and when unusual technological skills can be needed which cannot be effective among Hong Kong fast food industry related labor force (Tung and Punnett, 1993). In addition, McDonalds ‘employment with expatriate in its core administrative spot can possibly consolidate the parent business power at McDonalds as it started in the US, this alternative make certain supplementary being managed by host countries and Hong Kong is one of them as similar ideas being posted by proponents Egelhoff in (1988) and Kobrin also in (1988). Furthermore, Americans be required to rely on employers for social protection being provided by the state. Leidner (2002), reporting on the US, suggests that most fast food employees are likely to be young, female and part time, and country workers likely to be young with little previous experience of work and often no knowledge or experience of trade unions, pointed out that in US, where individualism and meritocracy are deeply embedded in culture, fast food workers receive modest support from public workers.

Royle (2002) suggest McDonalds conditions as somewhat better than somewhere else, McDonald’s remain profitable upon enough numbers of young workers could no longer be hired in Singapore, McDonald’s make use of ‘McAunties’ and ‘McUncles’, McDonalds with no additional cost to itself, improved its public image as it provided employment for vulnerable segment of the labor market experiencing high levels of unemployment. Benders and colleagues point out that promotion of female and ethnic minority employment at McDonald’s coincided exactly with the Dutch government’s employment policies. The central concerned with HK employment rights of workers at McDonalds and viewed into wider social and political dimension.

2.2 Ethnocentric approach not appropriate for HK

The international human resource posed by the company will be responsible for discovery of appropriate HRM based expatriate at McDonalds, who can be victorious overseas, even when directed by other HR executives upon the work base, the ethnocentric approach is more of racial and or ethnical culture that cannot be healthy for HK nationals since, labor force can undermine them despite business location is towards their own country and will leave aside culture issues as the Americanized culture will hold emphasis on McDonalds as one fast food business relevant to their tastes and lifestyle continuum as come about with US type of McDonalds being the parent company country of the latter (Lee and Larwood, 1983).

McDonalds have desired comprehensive integration with regards to their overseas contributory and molding HK and US fast food business mores, there can be positive account for HK people to become employees at McDonalds given the fact that there has been adoptability of geocentric administration approach. McDonalds in HK can possibly have staff position such as that deserving workers are recruited for the position, in spite of their status and ethnic group (Heenan and Perlmutter, 1979; Kobrin, 1988). Hong Kong may have issues in language communication on how McDonalds should be accepted despite US influence on the fast food chain and there leads to McDonald’s culture based barricade that might be less expensive than sending American employees to HK for training and development standing.

2.3 US culture vs. HK culture

There were variations to the US culture and HK culture that is why ethnocentric will not be ideal approach for HK fast food industry, culture in Hong Kong focus on the direct base of subsidiary with restrictions but in the US culture within harmonization from McDonald’s management. The Hong Kong employees are sanction in managing overseas subsidiary and in the sense HRM expatriates are to be not often used. However, McDonald’s parent business workers are incapable of increasing dear international perspective due to their work overseas. Likewise, Hong Kong people are not truly socialized unlike McDonalds in the US wherein there alleviates administrative culture from side to side contact and execute of harder laws on business entrance in HK as hard to transfer expatriates in HK due issues in business wherein McDonalds US operations is affected. These nationals are able to develop as managers in Hong Kong, but limiting their working careers due to the fact that there maybe issues to rich accomplish in stable business leveling of the company and so McDonald’s strategy similar to polycentric is regiocentric. Also, in HK family succession to business is at the central line wherein passing on the business traditions is imperative and limiting areas for expansion mostly on diverse culture such as the US.  

3. Geocentric suggestion

3.1 Geocentric is better than ethnocentric as well as polycentric

The US headquarters of McDonalds and some overseas subsidiary look themselves as incorporated part of international McDonalds association, geocentric approach will put fairness and equality to branch sites and locations of McDonalds for example, select and recruit and hire McDonalds staff based on geocentric base wherein geographic sense will be adopted and will have fair options of work base in Hong Kong mostly for the HK people and not the Americans. McDonald’s fast food culture can be vastly combined but not necessarily dictated by the McDonalds parent country wherein main headquarters is located and operate. In geocentric approach, race discrimination will be reduced as opportunity for all is given importance and not only have the Americans taken charge of the process.

The ethnocentric and polycentric approach does have sides of the matter, it cannot be totally safe and ideal to pose ethnocentric, geocentric and many other staff related approach as there hold base on HK employment policies and practice and or okay for HK workforce to cater ethnocentric, polycentric strategies to put staff in order and that upon dealing to HK McDonalds as one fast food industry, the expatriate performances can be way out of the mediocre level and lead to positivism. Notably, geocentric approach will be appropriate than other approaches since, it will not put bias on racial/ethnic issues wherein Hong Kong people might not accustomed for such English language for employment. Geocentric approach will put fair distribution on McDonald’s services without concerning much on sending people to work overseas just to do the service on track and placed upon flexible employment keeping McDonalds operational base as the same with US employment reasons.  

3.2 On Employment

Employment competence in Hong Kong can be possibly subject for business ability to change and adapt HRM strategically in gradation of broad global pasture. Business policy in which McDonalds assume will safeguard competence which has to be in accordance with McDonald’s human resource subdivision. Hong Kong’s human reserve practice need have to be harmonious with US based McDonalds deliberate planning in order for McDonalds employees to intricate even development of prosperous execution of HK McDonalds staffing strategies as the that it is the McDonalds people who put up for sale and advertise, expand and generate products, make decision and realize program, the approaches maybe vital in terms of victory in fast food industry sanctioned in Hong Kong region.

Furthermore, proponents, Dowling et al. (2008) asserted that, IHRM focus in multinational corporations, the management of people in multinational continuum while maintaining reliable focus over time; detain change in IHRM ground as served to help recognize challenges of geocentric approach as being appropriate when talking about HK fast food industry employment and the importance of McDonalds HRM. There can be changes to the impact of the staffing strategy as there were changes including exposure of enterprises, fast food service on running multiplicity and edifying workforce, substance off-shoring, mainly to China, supporting McDonald’s complete enlargement and connecting global HR role decisively to the McDonalds development arrangement respectively (Milliman, Von Glinow and Nathan, 1991).

4. Adopting of geocentric approach

4.1 Geocentric approach appropriate in HK

   McDonalds, socialization of fast food centered values maybe used as management strategy with McDonalds known service quality and customer based flexibility in order for geocentric standing to ideally provide accommodation for HRM diversification from within US centered culture and tradition of fast food chain with focal assumption at McDonalds staffing. McDonalds has been adopting geocentric planned social process that is ideal also in HK experience in order for the HK people becoming McDonalds employees will have improved knowledge of the entire fast food network and put HK location at the center core and not just US based McDonalds network for such presence of subsidiary domain (Bird and Mukada, 1989).

In addition, McDonald’s employees are to put on global perspective and skills which underpin competitive perimeter. It is the accountability of global human capital groups to develop employment practices which are consistent with geocentric measures like, political and civilizing limits of HK on McDonalds base. Moreover, Hong Kong’s nature of personnel, other approaches may not assistance completely for McDonalds staffing and human resource position wherein there put in sequence ethnocentric strategy may put it to somebody that McDonald be supposed to capitalize on McDonalds parent company as there came to administer in categorization of integrate auxiliary, along controlled approachable expenses. However, polycentric and regiocentric approaches allow McDonalds for more confined responsiveness of less business integration which might not be healthy for people in HK in terms of employment but it depends on the situation. The extent to which Hong Kong McDonalds desire their employees to share in the business culture will decide how host nationals are meeting people in parent company culture. In Hong Kong, there can be  no conveying of costs linked with McDonalds host basis regardless of benefits given about geocentric strategy, not ethnocentric because some business attitudes can be disinclined to bureaucratic McDonald’s service within overseas ancillary, geocentric as it can prefer to position HR expatriates if needed, overseas based.

4.2 The training

McDonalds, a well known fast food business front line and having an enormous success in the nature of fast food business operating under several human resource and labor relations complete with laws and regulation of employment at McDonalds (Royle and Towers, 2002). Due to the engagement in geocentric approach, there allow practical skills training and results oriented training for McDonald’s staff to be fully in the aspect of diverse workforce of the host country with ample basis on US McDonalds as parent company for its operation. This is also by means of performance training on actual customer encounter like greetings such as good day, thank you for the customers and put their best smiles while serving.

There is about training to basically be familiar on the McDonalds operational culture and by posting several HRM market opportunity in Hong Kong from which McDonald’s adopt deliberate direction from international to global customer service behavior as first recognized in the US fast food industry before it became successful in other nations. The exclusive skills and performance scorecard training for preparing HK employees achieve competence and excellence in delivering work duties and responsibilities. In a geocentric stature, staffing will become equally effective same with others on McDonalds parent company, the US and allow positive rewarding on HR management for best McDonald recruitment and selection. Geocentric base, Hong Kong fast food industry will be upholding effective management over directed subordinate, nurturing McDonald’s fast food culture globally (Prahalad and Doz, 1981). The trade of McDonalds workers involve serving appearance and facial expression being subject to executive misunderstanding and direction, and because there has been geocentric sense HK McDonalds customers will have pleasurable knowledge for good customer service along with service quality and ensure standard IHRM practices between customers and workers, encouraging workers to have eye contact, smiles as well as friendly delivery of customer lines (Leidner, 1993). 

i. Conclusion or generalization

Therefore, geocentric approach allow fairness and equality towards HK labor and employment reality as the HRM team will be employing and choosing best candidates for HK McDonald’s in a geocentric manner and standing. The advancement is strategic in nature; geocentric approach will be for healthier workforce on HK fast food industry, putting in competitive advantage at McDonalds. The mechanized training system necessitate to be consistent adhere acceptance to preparation employment shift, management payroll, order goods, determining food to serve and monitor inventories at McDonalds.

In addition, the accountability of international human resource will be consistency on the work process and be in command with equality at work and not sacrificing ethnocentric and polycentric means despite political and civilizing limitation of HK fast food industry. Geocentric approach help in formulating and implementing of deliberate plan and facilitate IHRM to be in proficient service along with McDonald’s fast food operational background.

References 

Royle, T & Towers B 2002, ‘Introduction’, in Royle, T & Towers B (eds) Labour relations in the global fast food industry, Routledge, London, pp. 1-7

Egelhoff, W. G. (1988) Organizing the Muitmationai Enterprise: An Information Processing Perspective. Cambridge, MA: Ballinger 

Kobrin, S. J. (1988) 'Expatriate Reduction and Strategic Control in American Multinational Corporations', Human Resource Management, 11: 63-75 

Tung, R. L. and Punnett, B. J. (1993) 'Research in Intemational Human Resource Management'. In Wong-Rieger, D. and Rieger, F. (eds) International Management Research: Looking to the Future. Berlin: de Gruyter, pp. 35-53

Lee, Y. and Larwood, L. (1983) 'The Socialization of Expatriate Managers in Multinational Finns', Academy of Management Journal, 26: 657-65 

Heenan, D. A. and Perlmutter, H. V. (1979) Multinational Organizational Development: A Social Architectural Approach. Reading, MA: Addison-Wesley

Bird, A. and Mukada, M. (1989) 'Expatriates in their Own Home: A New Twist in the Human Resource Management Strategies of Japanese MNCs', Human Resource Management, 28: 437-53

Milliman, J., Von Glinow, M. A., and Nathan, M. (1991) 'Organizational Life Cycles and Strategic International Human Resource Management in Multinational Companies: Implications for Congruence Theory', Academy of Management Review, 16: 318-39

Prahalad, C. K. and Doz, Y. L. (1981) 'An Approach to Strategic Control in MNCs', Sloan Management Review, Fall: 5-13

Leidner, R2002, ‘Fast food work in the United States’, in Royale, T & Towers B (eds) Labour relations in the global fast food industry, Routledge, London, pp. 8-23 

Royle, T & Towers B 2002, ‘Summary and conclusions: MNCs, regulatory systems and employment rights’, in Royle, T & Towers B (eds) Labour relations in the global fast food industry, Routledge, London

 

 

 

 

 

 

 

 

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