Ethnocentric Staffing in Brunt Hotels - Preparations for UK Managers as Expatriates in French Hotels - Case Study Example

Ethnocentric Staffing in Brunt Hotels: Preparations and Transitions for UK Managers as Expatriates in French Hotels Number May4, 2014 Brunt Hotels pursues internationalisation strategy, as it seeks to expand at a rate of 150 hotels per year for the next five years. It has recently acquired a hotel chain in France. At present, the company has numerous managers who want the opportunity to work abroad, although none of them speaks French. The company also provides only four weeks of rebranding for the French hotels before they open. Finally, around 70% of the staff of the French hotel chain resigned. The paper presents the analysis and recommendations of the HR management consultant. Ethnocentric staffing for the management position is advisable because it can be seen as a form of retention strategy for managers who seek for new location assignment and who believe that being an expatriate manager presents upper management mobility. Some constraints and threats are present, however, specifically, adaptation, language and local business knowledge limitations of the UK managers and the threat of low morale in French hotel branches that may be compounded by having UK, instead of French, managers. The managers can overcome these constraints and threats through having a quick crash course in leaning French for two weeks, while at the same time learning about French culture and the situation of the French hotel industry. Recommendations are provided for international management training, recruitment advertisement, preparation for relocation of spouses/partners of recruited expatriate managers, and performance management methods that altogether contribute to the personal and professional development of expatriate managers and attainment of internationalisation strategies of Brunt Hotels. Ethnocentric staffing is advised because it presents advantages that can contribute to the long-term internationalisation strategy of the firm. First, if the company wants to aggressively expand every year, it needs managers who are loyal to the firm and who can accumulate international business and technical expertise (Mössler, 2003, p.3). Sending hotel manager expatriates to France can improve its managers’ level of international business and technical expertise. These managers, in turn, can be transferred to new hotel chains in the future, thereby enhancing transfer of know-how from their international exposure to the internationalisation strategy-making and implementation of Brunt Hotels (Mössler, 2003, p.3). Second, ethnocentric staffing provides career, promotion, and development opportunities for parent company nationals (PCNs). Majority of the hotel managers in the UK of the company already expressed their desire of being assigned abroad. They might already see international assignment as loaded with career, promotion, and development opportunities (Mössler, 2003, p.4). Indeed, Brunt Hotels can enhance promotion and career options for hotel managers through ethnocentric staffing, while ensuring preparations for further internationalisation with the development of committed and experienced expatriate managers. Third, if the company wants to ensure a consistent organizational culture that provides reasonably priced hotel accommodations and clean and functional hotels, it should apply ethnocentric staffing to improve the transfer of headquarter culture to branch cultures (Mössler, 2003, p.3). A consistent international brand image can greatly improve the differentiation factor for Brunt Hotels. Finally, ethnocentric staffing ensures effective communication between headquarters and subsidiaries and increases headquarters’ control over subsidiaries (Mössler, 2003, p.3). Several successful multinational firms such as P&G applied ethnocentric staffing in its first internationalisation stages, which Brunt Hotels should pursue because it helps communication between headquarters and subsidiaries (Isidor, Schwens, & Kabst, 2011, p.2168). At the same time, ethnocentric staffing gives the company greater control for the faster rebranding of the hotels and to improve local knowledge acquisition that is essential to centralised control over the subsidiaries, at least initially. Hence, ethnocentric staffing presents advantages to the early internationalisation stages of the company. However, some constraints of and threats to ethnocentric staffing are present, particularly uncertain adaptation of expatriates, language and local business knowledge limitations of the UK managers, and the threat of low morale in French hotel branches that may be compounded by having UK managers as new managers. Current UK managers of the company have no experience of expatriation (Mössler, 2003, p.4). They may experience cultural and organizational change shocks that can impact them, not only emotionally and socially, but also professionally (Mössler, 2003, p.4). The effect of expatriation to their families can also impact their morale and performance (Mössler, 2003, p.4). In addition, the Brunt Hotels managers have language and local business knowledge limitations (Mössler, 2003, p.4). They do not speak French and it is not easy learning French before the hotels rebrand in four weeks. They also have yet to acquire local business and management knowledge and skills for French hotels. Finally, the Brunt Hotels managers will grapple with the challenges of low morale in the French hotels with many of employees resigning and with the management being replaced. They may not know or are not sensitive to the local and organizational needs and concerns of host country subordinates (Mössler, 2003, p.4). Lack of knowledge and sensitivity can depress morale and lead to unsuccessful management of the hotel chain (Mössler, 2003, p.4). The managers can overcome these constraints and threats through having a quick crash course in learning French for two weeks, while at the same time learning about French culture and the situation of the French hotel industry. Language learning is essential for the expatriate managers to reduce the hostility against non-local managers in the French hotels. The company should provide a crash course on French for basic French and hotel-management-related words for the managers. At the hotel chain, they can ask employees to also translate for them. In addition, the company must provide a cultural and management training that educates the expatriates about cultural differences and develops their multicultural management competencies (Ellis, 2012, p.2090). Two weeks are not enough, but at least, they can have some foundation needed in improving social and cultural competencies that are critical to their transition as expatriates and the transition of the French hotels to UK-branded hotels (Tsai, 2009). Basic French hotel management knowledge and skills can reduce morale issues in host country subordinates too because UK managers will not be entirely clueless of hotel management experiences and challenges in France. The training can ease the constraints and threats to ethnocentric staffing. After discussing the recommendations for ethnocentric staffing, the next point is the recruitment advertisement for the new hotel management positions in France. The recruitment advertisement is below. It contains the main responsibilities of the new job and the skills needed for the position, and it also highlights the advantages of being an expatriate. Good day: As you all know, Brunt Hotels have acquired a new hotel chain in France, and it is a great opportunity for us all to hire internally for expatriate managers who will lead the first wave of our internationalisation strategy. All selected managers will undergo language, cultural, and international management training. Your spouse/partner/families are also invited to join you and they will also be oriented regarding expatriation. The main advantages of being an expatriate are: (1) career and promotion opportunities; (2) exposure to international management assignments; and (3) additional compensation. The main responsibilities of the expatriate managers are: (1) responsibility for the day-to-day management of the hotel and its staff; (2) commercial accountability for budgeting and financial management, planning, organising and directing all hotel services, including front-of-house (reception, concierge, reservations), food and beverage operations, and housekeeping; (3) ensuring compliance with licensing laws, health and safety and other statutory regulations; (4) conducting regular meetings with heads of departments to coordinate and monitor the progress of business strategies; and (5) reporting weekly and monthly status of human resource management and financial conditions and challenges of the hotel to the headquarters. In addition, expatriate managers should be willing to be relocated again to new hotel chains in the future or repatriated. For those who seek to apply for the position, send your résumés to the HR department for review and interview. The recruitment advertisement serves to mentally prepare management applicants of their duties and responsibilities to their new hotels and to headquarters. Besides the recruitment advertisement, an information sheet will be provided to the spouses/partners of expatriates. Spouses/partners can help make or break expatriate assignments because they provide important emotional and social support to expatriate managers. The information sheet will include invitation to accompany expatriate managers. The information sheet helps spouses and children to adapt to the new environment. Below is the information sheet. Dear Madam/Sir: Your spouse/partner has been recruited as an expatriate manager in France. As expatriate manager, he/she will stay in France for 3 to 5 years, and will be relocated in another nation or repatriated, depending on the career decisions of your spouse/partner. You and your kids are provided the opportunity to join your partner/spouse. This sheet intends to give useful information as you prepare for your trip to France. First, you will be sent materials regarding France, its language and culture, as well as housing and educational accommodations. These materials include online websites for learning the French language, culture and living conditions and systems. Second, you will attend an introduction and orientation day for employees and their spouses/partners, and families once in France. It is a one full-day gathering that will introduce you to the culture and society of France. It will also help you meet the families of other expatriates who will be invited to join the socialisation day. Third, an HR employee will provide another orientation for basic social services in France. He/she will orient you about education and health care services, among others. You can send questions to him/her now by e-mail to further prepare you in your transition in France. We hope to make the preparation and transition as easy as possible. Please do contact our HR staff for any further concerns and inquiries. After discussing the information sheet for spouses/partners, the next and final point is the explanation of performance management for the new expatriate staff. Brunt Hotels should intend to maximise learning from its first stage of internationalisation by using different performance management methods. These methods expand the ability of the company to gather valid and accurate feedback about the managers and internationalisation challenges and opportunities. The recommended performance management is structured, where HR asks managers too about their performance goals and objectives (Ellis, 2012, p.2093). These goals and objectives will be added to the structured performance appraisal that will be conducted every quarter. Informal monthly reports will also be done, where HR asks about milestones and challenges in hotel management. In addition, the 360-degree feedback method will also be applied. HR will act as performance raters and will get feedback from clients, subordinates, and fellow managers (Suutari & Tahvanainen, 2002, p.58). The criteria for evaluation include assessing soft and hard management knowledge, skills, and attitudes (Suutari & Tahvanainen, 2002, p.58). Finally, managers will be asked to also evaluate their performance using financial and non-financial measures. This way, they become more aware of their strengths and weaknesses, as well as opportunities for improvement, as expatriate managers. Ethnocentric staffing takes time, money, and a great deal of preparation for expatriate managers and their spouses/partners/families. Nevertheless, the benefits of career development and contribution to internationalisation strategy cannot be undermined. Ethnocentric staffing should be accompanied with fast-track training for managers, a clear and persuasive recruitment advertisement, and information sheets for spouses/partners for enhanced preparation for personal and management transitions. Performance management must also be balanced and include the feedback of managers and other stakeholders to ensure that the HR assesses all important criteria for the managers as professionals and as human beings with social relationships. These efforts endeavour to decrease problems with adaptation and management transition and to improve the success of expatriate managers. References Ellis, D.R. (2012). Exploring cultural dimensions as predictors of performance management preferences: the case of self-initiating expatriate New Zealanders in Belgium. International Journal of Human Resource Management, 23(10), 2087-2107. Isidor, R., Schwens, C., & Kabst, R. (2011). Human resource management and early internationalization: Is there a leap-frogging in international staffing? International Journal of Human Resource Management, 22(10), 2167-2184. Mössler, K. (2003). The pros and cons of international staffing policies. Retrieved from Google Books. Suutari, V., & Tahvanainen, M. (2002). The antecedents of performance management among Finnish expatriates. International Journal of Human Resource Management, 13(1), 55-75. Tsai, C. (2009). The important effect of employees emotion management ability on his/her service behaviour in the international tourist hotel. Service Industries Journal, 29(10), 1437-1449. Read More