INDU1130 International Human Resource Management – Internalisation & Recruitment Assignment Solution

 Introduction

International human resource management (IHRM) refers to a process of managing human resources (people) across the boundaries by MNCs. IHRM involves worldwide human resource management for both host country nationals and expatriates (Welch and Björkman, 2015). The following report will study the issues faced by organisations while managing its human resource (people) working across the boundaries. In this report, a case study of “The Greenway Hotel Group” will be studied in order to understand the concepts and issues related to internationalisation and recruitment. In the discussed case study, the Greenway hotel acquired a small hotel chain in France. 

In the IHRM context, mergers and acquisitions are common in multinational businesses. Mergers and acquisitions are the means by which MNCs initiates their internationalisation strategies. However, it is often reported that businesses often fail to fail to achieve their objectives through mergers and acquisitions. The failures are commonly attributed by HR- related factors (SHRM, 2016). Mergers and acquisitions are common in European countries. One example of M&A is of Mercedes- Benz and Chrysler that resulted in falling sales, and ultimately led to corporate divorce. Bearing the factors leading to failure in mind, this report aims to discuss the failure factors in the discussed case study of “The Greenway Hotel Group”. In this report, “The Greenway Hotel Group” will be suggested the best approach to support its short-term and long-term success. This report aims to suggest “The Greenway Hotel Group” on recruitment approach, factors needed to consider while planning expansion in France and Europe, HR practices and its implications and the long-term approach that the hotel should use to achieve its strategic objectives.

Discussion

Case Study Summary

To support its long-term strategic objective, “The Greenway Hotel Group” recently acquired a small hotel chain in France. Since Greenway Hotel plc owns over 60 hotels across the UK, it strategized to expand in France and European countries. Greenway Hotel plc decided to rebrand half of the acquired hotels and sell off the remaining half to support the new ventures planning and budgeting. After the acquisition, the crucial decision for Greenway Hotel plc is to consider developing new management team (regiocentric approach) for France or to send its existing UK managers to look after the acquired French hotels while using ethnocentric approach. Greenway Hotel plc hopes to expand its chain of hotels to Europe once the venture for France turns out to be successful. Greenway Hotel plc aims for growth to own 150 hotels in 5 years and 300 hotels in 10 years across Europe.

Greenway Hotel plc had been facing major challenges in implementing the expansion in France. Firstly, the Greenway Hotel plc had six weeks’ time for this operation. Secondly, it was challenging for the Greenway Hotel to identify who will manage the French hotel. Following by these challenges, Greenway Hotel plc also identified that complex political behaviour, and culture of France would be difficult to adopt. 

Importance of International Human Resource Management

There are various facts to consider when an organisation plans to enter new markets across the boundaries. A lot of focus and strategic planning is needed to have a successful expansion for the organisation to grow profitably (Velocityglobal, 2016). With the emergence of technology and globalisation, businesses have made their ways to operate across the boundaries. The purpose of IHRM is to achieve a competitive advantage by recruiting an efficient workforce, training human resource to enhance their productivity and skills (Trivikram, 2017). According to Trivikram (2017), organisations take their operations across the border by several means, and the most common way to expand business operations are mergers and acquisitions. The foremost objective of businesses to expand internationally is to target a new audience, position itself as the market leaders, and effectively utilise its human resource at the international level. Internationalisation of businesses can result in bringing changes in the organisation’s long-term strategies, its structure approaches as well as human resource activities. 

The following figure 1 represents the model of “International Human Resource Management” (IHRM) which includes HR activities, types of employees and countries to be considered while expanding internationally.