HR assignment on: International Human Resource Management

HR assignment on: International Human Resource Management

International human resource management basically refers to securing, allocating and effectively utilizing human resources in a multinational corporation while harmonizing the incorporation and differentiation of HR activities in foreign locations. It is used and applied by the organizations to avoid cultural risks and regional disparities (Gomes, n.d). This essay attempts to compare and contrast the similarities and differences between human resource & employee relations strategies and processes adopted by the fast-food industries in United States, Germany and Singapore. Afterward, it talks about the level of influence of local country’s culture on these strategies and processes adopted. At the end, a brief discussion has been carried out to identify the lessons learned by food industries of these three nations to develop a practicable international HR model for specific national country backgrounds.

The essay will explain the processes of fast food industries and ER strategies applied, it becomes necessary to give a general idea about this industry first. The fast food market can be defined as the sale of food and drinks for instantaneous consumption either on the premises or at elected eating areas shared with other foodservice machinists/operator, or for consumption elsewhere. Moreover, the big fast food’s giants brought the franchise system in market in order to best maximize their profits. In today’s context, consumers pay before consuming at the industry’s businesses. Hence, fast-food industries started offering the orders through phones and internet also and even offers can be taken out for home consumption.

Similarly, to compare the parallel points and differences between ER strategies and processes adopted by US, Germany and Singapore, a brief introduction has been proposed regarding these countries’ fast-food industries. Firstly talking about United States’ food business, according to Eric Schlosser, author of “Fast Food Nation, it has been sought that at least one quarter of American adults eat fast-food every day (Mifflin, 2000). Specially, Mc Donald is one of the most popular amongst them as a food-chain with 31,000 restaurants in more than 120 countries in 6 continents and with more than forty billion dollar system-wide sales (Blundell, 2000). It has become one of the most successful fast-food companies in U.S, Germany and Singapore as well. Moreover, KFC, pizza-hut, Subway, etc are others fast-food chains that are also well-liked by these countries’ people (IBIS World, 2012).

Generally, fast food industries focus on high volume, low cost and high speed products that can be easily available to the consumers. Subsequently, these industries target the central locations of cities and mold their businesses according to the country’s culture. For an instance, Mc Donald’s developed its model based on U.S culture for business and to capture the greater amount of Americans as they are more attracted toward it (Cain, 2003).

Additionally, German market could also be able to pierce its culture in Mc Donald’s model. It proved to be the country that made Mc Donald to deal with the issues and challenges regarding employee relations. Further, in case of Singapore, A & W family, KFC, Mc Donald and Pizza-hut were in the line of fast-food chain and sought stiff competition. Singapore’s chain of Mc Donald made a world record for serving the highest volume of hamburgers in a single day due to their employees because they have great focus on employee’s stakeholder in their business (Royle, 2005). Through these studies, it can be noticed out that MC Donald is accepted most out of all food-chains available because one can easily find out its restaurant in almost every corner of the island. Moreover, there were also other fast food chains which wanted to have a piece of pie and entered with this expectation but did not go well with their services.

Out of three said countries, Singapore is considered as an advanced country in Asia and mainly regarding economic aspect. This facilitated Mc Donald to seek Singapore as the most practicable market to plunge. Consequently, this company has been successful in serving the customers and simultaneously managing their requirements. In contrast, all of these three nations emphasize on their employment (Combing Singapore for you, 2005).

They concerned a fact that human resource is the most important for any business as well as for economy. Accordingly, they conducted employee motivation programs. According to them, the employees are the most effective link between company and the customers. Employees are encouraged to live healthier lifestyles through the advantages attached to better and developed choices. On the basis of comparison, it can be said that out of three countries, Singapore is referred as the friendliest nation in terms of the employment laws and other important factors that can affect their relationships with the employees. This is because of Singapore’s authoritarian corporatist government (Combing Singapore for you, 2005).

Alternatively, it is different with the fast-food industry’s condition in German market. The Mc Donald’s corporation was aware that the company will be having issues in addressing market in Germany, reason behind was that the nation is said to have strong institutional accords and legislative foundation. Moreover, in U.S distinct laws and policies are more in favor of the employers than the workers. In U.S, the rate of employees working with fast food industry is low due to various different factors (Demaria, 2003).

First, unlike Singapore and Germany, there are different owners of restaurants due to franchises in U.S. Hence, it forms a decentralized management in terms of human resource management.

In addition, there are a lot of studies which present that working scenarios in food industry is moderately low, reason behind is high turnover rate in industry. Moreover, on the basis of these studies, this situation can be viewed in U.S, Germany and Singapore. Having least problems, Singapore deals with these challenges and at the same time handles its customers. This can be pointed out based on its social and economic conditions in the country (Human rights watch, 2003).

However, there are different processes which have been adopted by these three countries in said industry. The procedure of making food is quite equal in three of the nations. Fast food chains rely on menus offered to the customers to take orders. In that case, each nation has slightly different menus and therefore new food groundwork techniques are approached and used. For an instance, one out of two fries prepared by Mc Donald must gauge 75 mm, meat for big Mac’s ponders 45g and is 20% fat, and buns are 9.5-9.8cm in diameter and 6cm in height (Vignali, 2001).

Going forward to the employee relations strategies, law of Singapore states that the employees will have 44 working hour every week, 7 days paid annual leaves, 11 public holidays, 28 days paid sick leaves, 2 months paid maternity leave and overtime rate of time and half & double time on Sundays and public holidays. It was found to be somewhat same with German law which merely focuses on the aspect of continuing fair and enclosure in the work place. German fast food industries also include the aspects of race, customs, gender and disability as well in their employee relations and human resource strategies (Department of Singapore, 2012).

A decisive point can be drawn on the basis of discussion that U.S is least friendly towards the employees in fast food industry out of the three nations. Fast food industries in U.S have framed their business models according to employers. It is because of extremely low rates of unionization and an authorized context which represents the nationwide valorization of free enterprise (Leidner, 2002).

In sum, it can be said on the basis of information explained that Singapore is friendlier to the employees in comparison with Germany and the United States in terms of employee relations strategies, policies and standards used. Consequently, due to the different environmental, common and political factors in these three countries, it is crucial for Mc Donald and other players in the said industry to focus on developing their relationships with employees (Royle, 1999).

Nevertheless, comparison revealed the similarities and differences between U.S, Germany and Singapore’s fast food industries’ HR/ER strategies and processes. Influence of the local country culture and some institutional factors on those strategies and processes can be made a point to be noticed. Although the United States may play a prevailing role within the phenomenon of cultural globalization in fast food industries, it is critical to keep in consideration that this is not a completely one-way street. Besides, the United States way of living is put together around rapidity and competence (Min, 2011).

Every new progress in technology is built around being just a little quicker and a little more linked. The everlasting need for speed in U.S has occupied all aspects of their lives and has formed an environment that is not encouraging traditional family meals. In contrast, quality has become less important for them than it used to be earlier (U.S food and drug administration, 2000).

Possibly this is why McDonald’s is satisfied now and has started booming in U.S. Since American culture emphasizes on eating as inevitability and has an inclination towards individualism and autonomy from each other, fast food industries have shown greater level of interest in the country (PRLOG press release distribution, 2010). On the other hand, American fast food industries pay low wages to the employees working there.

Moreover, the influence of America’s local culture on the processes adopted by said industries can be analyzed on the basis of following data presented regarding fast food companies’ revenue earned in U.S (Statista, 2012):

• Mc Donald ——–US$21.6 billion in 2006
• Yum! Brands including KFC —–$9.6 billion
• Starbucks ——$7.8 billion
• Wendy’s ——$2.5 billion
• Burger King ——$2.1 billion
• Domino’s Pizza ——$1.6 billion

Fast food statistics of U.S revealed that more than five crores people depend on fast food in U.S. Americans usually spend over 110 billion dollars alone for different types of fast food (Sweet additions, 2010).

Accordingly, Americans have started spending more money on fast food than on higher education, personal computers, computer software, movies, and books. Similarly, fast food is now offered at restaurants and drive-throughs, at sport grounds, airports, zoos, schools, and universities, on cruise ships, trains, and airplanes, at K-Marts, Wal-Marts, gas stations, and even at hospital cafeterias (Mifflin, 2000).

Afterward, talking about the impact of institutional factors on strategies and processes adopted by U.S fast food industries, PEST analysis can be done to examine the influence (PRLOG press release distribution, 2010).

Conducted animal rights campaign

Volatile regulations and tax laws

Minimum wage and labor market regulationLow set up costs on franchising

Economic downturn

Increasing disposable income

Perceived value for money

Rise in per capita spending

Rising food costs

Increasing working hoursSocialTechnicalBusier life styles

Healthy eating and obesity

Boosting social activities & events

Environmental concerns

Self-image and fitness

Niche foods

Computer ordering

Enhanced quality control

Consumer order apps & quicker service

Lower labor cost and waste

Global supply chain control

As far as Germany is concerned, its local culture impact fast food industry from political, economic, socio-culture and industry environment perspective. While applying for jobs, German employers look for concrete education and qualifications. On the other hand, Americans place more importance on practical experience and the knowledge potential employees learnt from their preceding jobs. However, Americans tend to change their jobs frequently; Germans more often continue with a company for a much longer period of time and believe more loyalty to the company. This type of culture helped fast food chains remain growing in German market. Overall comparison reveals that fast food available in Germany is cheap and extremely diverse.

A research has also been presented based on analysis of fast food market in Germany. It includes the following:

• German culture demanded vegetarian and fresh healthier food. Therefore, the operators of fast food industries introduced healthier food options such as salads and a greater number of vegetarian dishes as well.
• Moreover, many of the German fast food restaurants converted their outlets from elementary décor to a more stylish design aesthetic. This led consumers to feel more comfortable at the time of dining in such stores across Germany in 2010.
• Next, Germany expects to increase its fast food outlets at a CAGR of 1% over the forecast period. The operators of fast food industries also tend to invest more money in advertising and plan to have greater resources to place their outlets in favorable and foot traffic locations (Euromonitor, 2011).

Moving to Singapore’s cultural impact on Fast food industry’s processes and industries, the industry remains while they are allowed to be heterogeneous in their behavior by proposing a different product line. In Singapore, there are three main points that have a great impact on fast food industries. Firstly, according to their nation’s fiscal policy, corporate tax increases every year which may attract foreign investors to invest in said industry in Singapore. In addition, from the perspective of cultural effect, Singaporean may set up new fast food restaurants due to the low corporate tax rate (Cheang, 2007).

As Singapore is facing the aging population and the average annual growth rates are too high, It will perhaps harder for fast food employers to hire more young workers as the said industry is to make use of young people at service points (Emberton, 2006). Change in Socio- culture of Singapore has amplified the trend towards using up of more developed food and the use of Western style food restaurants (Agriculture & Agri-food Canada, 2008).

Additionally, key fast food chains such as Mc Donald’s, Burger king and KFC got engaged in aggressive price promotions to enhance their value in market at the end of the review period. Influence of culture and other factors can be viewed as Mc Donald got S$4.50 lunch specials during weekdays that were somewhat 30% cheaper than the usual price offered by other operators in the market. Fast food industries in Singapore continued to lead fast food in 2010 with 38% value share (Euromonitor, 2011).

Finally, some of the lessons regarding fast food industries to develop a workable international HR/ER model can be identified on the basis of overall comparison made. International HR & ER builds on the groundwork of human resource management and employment relations ideas, by keeping in mind HR/ER’s concepts actually meaning in different countries around the world. As organizations become progressively international, problems of national culture, systems and institutions can often stand in the way of a flawless succession of HR and ER across national boundaries. Therefore, U.S, Germany and Singapore can sought various learning (Schuler, Budhwar & Florkowski, 2002).

First, from a cultural perspective, these nations should know that how people in different countries see themselves and others around them, and how prospects, values and beliefs can differ from one another. Second, from an institutional perspective, the industries can compare how national level legislation, state interference, trade union influence, and the respective power of employees versus customers all impact on models of HR/ER practices in different countries. Finally, they can investigate and survey on how multinational companies are running their way through this difficulty, making strategic choices in international HR/ER to make sure that they achieve and meet the ultimate balancing act of thinking global but acting local (Brewster, Sparrow & Harris, 2005)

International HR/ER model

(Source; Finntrack, 2010)

In case of U.S, a lesson can be outlined on the basis of comparison that the country should involve and focus on employees more as the connection between employees and consumers impact the business at a higher level. Moreover, like Singapore, U.S and Germany should be friendlier with employees so that serving and handling the customers can be proposed simultaneously.

Intend of the essay’s study provides an insight to draw a conclusion. It talked about the individualism culture of U.S, threw light on fast food industry of Germany and revealed the processes and ER strategies of U.S, Germany and Singapore nations. Generally, fast food industries have the processes to produce high volume, low cost and high speed to grip their consumers easily. It was observed that U.S fast food industries approached the model based on employers instead of focusing employees. While Germany made the said industry possible to manage the employee relations at their best. Singapore became the country that served and managed the customers at the same time. Analysis showed that U.S is the least friendly nation with the employees out of three.

Next, influence of trade unions, local country’s culture presented the analysis of fast food industries in these three nations. Whereby Singapore found to be developing its business, U.S found to be employing more young people to the industry and Germany converted its décor of outlets to attract more consumers.

Lastly, some lessons have been identified from both cultural and institutional perspective for three of the nations.

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