International Human Resource Management - Greenway Hotels PLC - Case Study Example

A Report on International Human Resource Management Based on Case Study and Group Presentation Name Institutional Affiliation Date Table of Contents INTRODUCTION 3 CULTURAL DIFFERENCES BETWEEN THE UK AND GERMANY 3 Human Culture 3 Communication and Employee engagement 3 Working style 4 Leisure Habits 4 IMPLICATIONS OF THESE DIFFERENCES TO THE MANAGEMENT OF THE HOTELS 5 Leisure Habits 5 Working Style 5 Human Culture 6 Communication and Employee Engagement 6 RECOMMENDATIONS TO MINIMISE CULTURAL DIFFERENCES 6 CONCLUSION 8 REFERENCES 9 APPENDIX 10 INTRODUCTION The purpose of this report is to offer a broader discussion of the research topic: cross-cultural management. The research entails outlining some of the cultural differences between the UK and Germany ,explaining what implications these differences might have to the management of hotels in each country and then giving recommendations on how Greenway Hotels PLC might ensure that any cultural differences cause minimal issues for the expansion of the company. CULTURAL DIFFERENCES BETWEEN THE UK AND GERMANY Cultural differences between UK and Germany were analysed under the five distinct categories: Human culture, communication and employee engagement, working style and leisure habits. Human Culture The German people are quite private and highly individualistic as contrasted with the English people who are less individualistic but are said to have tight family ties in a nuclear set-up. Individualism in cultural terms refers to the extent to which members of a society are intended to take care of themselves and others (particularly within the family set-up (Clasen 2005). Marxist theory attributes individualism to the fact that human being’s desire and actions are dictated by the urge to prosper socially, politically and economically. Given this approach to life, the interest on oneself overrides that in other people. Communication and Employee engagement In this regard the Britain managers are known to be fairly autonomous .In addition, they are pleased with the fact that the distance between the managers is the rest in the lower cadre is minimised. The latter is a bone of contention in German where workers are constantly seeking for minimisation of authority. They similarly feel that managers should constantly collaborate and consult with them. The neoliberals’ approach to economic philosophy in UK is what has promoted this democratic space (Clasen 2005). Neoliberalism is a favourite practise applied by the World Trade Organisation (WTO).This approach believes in free market. It further encourages trade unions and labour organisations factor that has given workers in Britain much more freedom than their counterparts in German. Working style While the in UK workers prefer certainty, progression of thought in a logical manner and clarity their counterparts in German do not mind ambiguity, uncertainty and change (Clasen 2005). UK employees are keen on future of their jobs and if their current jobs are going to sustain them in the future. Everyone is keen on better remuneration, economic trends vis-a-vis sustainability of their wages as opposed to the Germans who are comfortable with certainty at work. The German thus can be said to have a short-term orientation .They are easily satisfied even if their goals are going to be satisfied at a later time. The English are instantaneous and want immediate satisfaction. Theories of management form the basis of leadership and management in UK. Consequently, tremendous success has been achieved. These theories include; the contingency theory states that a situation dictates the leadership qualities. The other theory is by behaviourists that analyses the patterns of leadership based on behaviour .The power and influence theories takes a contrary approach by proposing various ways through which leaders use power and the consequent styles of leadership that emerge. Leisure Habits In English people love leisure (Clasen 2005). They prefer work but they love and enjoy leisure too. They spend thus a lot of money on leisure activities such as camping, travelling, tourism, hospitality and tourism. The Germans on the other hand are rather reserved in nature. They do not regard leisure activities as much as the English people do. IMPLICATIONS OF THESE DIFFERENCES TO THE MANAGEMENT OF THE HOTELS To illustrate this part of the topic a case study was considered. This is the Gateway Hotels Group PLC–a chain of hotels in the UK was initiated by Britain investors and has 60 hotels all over UK, with 20 in London. For last year alone, the company gained revenue of 220 million Euros (Budhwar, Schuler & Sparrow 2009). Its employees are close to 7000. They have lately extended their branches to German and some of the cultural differences discussed above might have the following implications. Leisure Habits Given that Germans are restrained individuals in nature this is definitely going to have negative financial benefits. As opposed to London, in German people spend less on leisure .In addition ,most of them prefer eating along the roads instead of going to restaurants .The Gateway Hotels in German will thus get less revenue in this sector. Since in UK the English people value leisure that’s why Gateway hotels in UK earn huge revenues (Fulbrook 2004). Working Style Considering that Germans are more flexible and that not mind uncertainty, this can be cultivated to yield positive results. This means that they can be easily motivated from simple things like job security, clearer working terms and conditions. If this is maximised the hotel can build an excellent working environment than they would in their homeland UK. In the UK it a bit harder satisfying the needs of the workers .This often results in employee dissatisfaction and later great turnovers especially in the hotel industry where the conditions are tougher than any other. Human Culture As discussed earlier the Germans are less individualistic and prefer close family ties. If the hotel rebrands some its services and made a few discounts for nuclear families this might attract such families and thus increase their spending in the hotel. A new hotel in their environment would excite them .The less individualistic nature too has an advantage in that they are more open to new things, adventures and experiences in their environment than the English. For instance, in UK most people would stick to their traditional way of doings, places of leisure and eating. Communication and Employee Engagement This has both positive and negative implications. Upward communication might face challenges owing to the general feeling a greater distance between managers and the rest in the lower cadre. What this means is that a problem or dissatisfaction among those in the lower cadre may not be communicated effectively. Communication is the key to success and if this is not exploited for the benefit of the hotel things will definitely go wrong .On a brighter side, the UK seems to continue to foster good communication since workers have learnt to talk freely. Grievances, dissatisfaction and faults in the hotel will be communicated on time and solved. RECOMMENDATIONS TO MINIMISE CULTURAL DIFFERENCES The Greenways hotel should send UK managers who have or can acquire knowledge of the German culture. Training on culture may be a necessary prerequisite for these managers. The objective of the training is to shape the mindset about the German culture and eliminate any prejudice. Training can be offered prior to or in the course working through in-service training, workshops or seminars. A few sentences of German will be useful and show respect to the German staff but it will be acceptable to use English and the preferred language for communication (Fulbrook 2004). Some qualities are indispensable for those managers intending to work in German .They include being open- minded. There is no doubt that learning a new culture involves encountering some culture shocks. In this instance, it’s only an open minded person who is can live to appreciate and understand the other people’s way of life. Similarly, one ought to be polite, warm and friendly, patient in learning the Germans and above diplomatic and respectful. It is also recommended that the managers recognise that commitment, ethics and communication are influenced by culture. In order to create a friendly working condition should be the key objective of the managers. This might be achieved through creating policies that encourage work –life balance, consultation among the staff and growth of the staff. In addition, the employee’s views and grievances should not be taken for granted but be held seriously. This will go a long way in complimenting the positive attitude that the German culture has cultivated in its people. Another recommendation is to foster communication among the hotel staff. Avoid ambiguity and vagueness. Create an environment where the junior staffs feel free to talk to the management without fear of intimidation. The tasks to be done should be well explained, have enough and clear details. The objective of communicating effectively is to eliminate causes of conflict linked to communication breakdown. The last recommendation is to foster work-life balance. This means allowing the staff an opportunity to live meaning social lives while at the same time working productively. The hotel industry is known to have long working hours, unpredictable shifts and low wages. Therefore, in this regard the, the hotel should put in place flexible working hours, predictable shifts and remunerate its workers well. This will not only boost their morale but also go a long way in enhancing productivity and reducing the turnover rate. CONCLUSION In conclusion, cultural differences are inescapable elements in our society .Given that they are part and parcel of our lives (including businesses) keen interest ought to be accorded to them. For any business to thrive in a foreign culture, it’s important to analyse the foreign culture, evaluate its unique characteristics and the areas that could be captivated to enhance productivity. REFERENCES Top of Form Top of Form Bottom of Form Bottom of Form Top of Form Budhwar, P. S., Schuler, R. S., & Sparrow, P. 2009. International human resource management. London: SAGE. Clasen, J. 2005. Reforming European welfare states Germany & the United Kingdom compared. Oxford:Oxford University Press. http://site.ebrary.com/id/10317731. Fulbrook, M. 2004. A concise history of Germany. Cambridge: Cambridge University Press. APPENDIX NAME % of the work done PART OF THE TOPIC COVERED L 50% Introduction of the topic, overview of the task, culture differences, effects of culture and recommendations F introduction to the business S Outline of some of the important national cultural differences UK/Germany N Communication preferences and implications for UK managers Q Cultural idiosyncrasies and pitfalls to be aware of in day to day communication between German/UK staff. SA Employment contract preferences in Germany V Recommendations to Greenways UK senior management team. TABLE OF INDIVIDUAL MEMBER’S CONTRIBUTION SELF-EVALUATION OF THE PRESENTATION The presentation was well-structured. Enough content was presented and well - supported with sufficient details, illustrations and examples. The presentation followed a logical and coherent order. However, it would have been better if a specific area was identified so as to stay focused on the presentation. Bottom of Form Read More