As the Director of International Human Resources for Woolworths Limited (the chosen Multinational enterprise) in Australia, I was given the task of drafting guidelines and procedures for managers and Parent Company Nationals (PCNs) who would be going on a 3–5 years overseas assignment. A total of four managers would be in charge of establishing a subsidiary in France. They will be in charge of recruitment, selection, performance appraisal, training, and development of the staff in France (HCNs). Hence, this report aims at presenting an illustration of International Human Resource Management strategies best suited for Woolworths Limited.
George Creed, Ernest Williams, Stanley Chatterton, Cecil Scott Waine, and Percy Christmas instituted Woolworths in 1924, and have since evolved to become Australia’s largest supermarket retailer. The company’s headquarters are still in New South Wales, Australia (Phillipov and Loyer 2019), however, the firm is currently looking to extend its operations internationally. Woolworths continues to serve retail clients and supplies a wide range of household commodities. Woolworths hasn’t dispersed acreage in Australia and is planning to augment its operations to the global market, which would necessitate top-notch Human Resource Management policies and personnel to enable a seamless brand development both domestically and internationally. Woolworth’s human resource practices and policies must be streamlined for the brand to effectively grow into the worldwide market. This means that the company must strive to hire and keep the best employees, which would have a significant impact on the company’s international growth. As a result, they may allocate dependable staff management responsibilities and move workers to new branches with confidence that the subsidiaries would be efficiently managed.
The purpose of an organisation’s human resource strategy would be to regulate employees’ activities so that they can collaborate to achieve organisational goals and objectives (Dahlke et al. 2021). Human Resource management promotes task-sharing that helps the organisation achieve its goals. This is accomplished by concentrating on training and encouraging staff to work as part of a team, assuring their high level of dedication to the enterprise.
This is critical for Woolworths to set up a unit administering the company’s human resources with an attempt to put up comprehensive HR policies that meet human capital requirements (Von Briel 2018). Woolworths has a strong HR department that is in charge of managing a variety of positions while also organizing all aspects of human resources to ensure that the firm’s workforce requirements are satisfied.
The widespread dimension of HR management is determined by the evolution of HRM at all divisions and departments of a business. In the case of Woolworths, Human resource managers are responsible for a variety of tasks, which would include identifying workforce needs and recruiting employees for open positions. Woolworths recruits the top people in the company due to its employment competence. The firm also strives to establish productive partnerships with staff by giving a healthy organisational environment and training initiatives, resulting in a competitive edge in the business.
This segment will introduce a Survival Guide for Managers (PCNs) who will be residing and working in France for the upcoming three to five years.
Human resource management uses and pioneered this concept to oversee and address cross-cultural difficulties in the workplace. Woolworths Ltd is required to utilise the Hofstede cultural model, which comprises masculinity, femininity, power distance, uncertainty avoidance, collectivism, and individualism (Morren and Grinstein 2021). Most significantly, Woolworths’ organisational culture symbolises the firm’s overall global and transnational ethos/culture. This is likewise present and implemented domestically and also in its subsidiaries situated overseas. However, using the model, the cross-cultural differences in both the nations. According to the outcomes, Woolworths will strategize its HRM policies.
Indulgence Versus Restraint (IVR): When it comes to Indulgence vs. Restraint, France is in the mid-range by scoring 48. The French, contrary to popular belief, are much less relaxed and embrace leisure less frequently. As a result, Woolworths employees in France are not entitled to free expression (Chatzipanagiotou et al. 2019). Woolworths values its employees’ pleasure in general, but it must be avoided in France. Employees must be regarded with dignity and the overall culture ought to be upbeat. All staff should be instructed on how to be cool while working regularly.
Long-Term Versus Short Term Orientation: France has a significantly high score (63) in this category, indicating that it is pragmatic. Hence, the French have a high proclivity for saving and investment, resilience and thriftiness in obtaining achievements, and they have a strong proclivity to adapt practices to changing conditions (Ameen et al. 2021). As a result, Woolworths must prioritise employee education and performance. The organisation must somehow hire the greatest and most educated candidates for its many positions within the organization, but it must also ensure that staff are constantly learning with job assignments, engagement, and training.
Uncertainty Avoidance Index (UAI): The culture of France has a high Uncertainty Avoidance score of 86. Surprises don’t appeal to the French. It’s critical to develop a strategy and adhere to it. So, the French are competent at building complicated systems in a consistent setting. Woolworths needs to foster a flatter organisational structure (Haldorai et al. 2021). Woolworths must foster a change-oriented culture within the company. With team building, employees can participate in change management initiatives aimed at improving the company’s policies, cultures, and work activities.
Masculinity versus Femininity (MAS): France, with a rating of 43, has a Feminine culture. A Feminine score is given to the wealthy elite class, whilst a Masculine score is given to the working class, which is unusual. The basic difficulty that Woolworths may encounter here is whether employees are motivated by a desire to be the best (masculine) or by a desire to enjoy what they do (Feminine) (Khan et al. 2022). As a result, it’s acceptable if HRM pays like top managers, who typically earn less than some may surmise their high-Power Distance rank.
Power Distance Index (PDI): France has a Power Distance index of 68, which is quite high. As a result, in a French society where a certain number of inequalities gets tolerated. Because Woolworths’ organisational culture does have a minimal power distance, the corporation perceives managers and leaders delegating power without limitation or worry (Tear et al. 2020). Employees develop a sense of ownership as a result of delegation of power. The company, on the other hand, may improve employee motivation by instilling a spirit of faith and loyalty in individuals.
Trompenaars and Hampden-Turner identified 7 dimensions of different cultures that have aided in increasing cultural awareness. Multiple dimensions can be found based on cultural inclinations, comparable to Hofstede and Globe’s model (Piispanen 2019). There are 7 dimensions, which are as follows:
Following are some of the illustrations.
Universalism against Particularism: When confronted with a disagreement, the French use a particularistic approach (Huang 2018). It’s particularly true whenever the people concerning whomever the decision will be made have a close relationship with the person making the decision (Coppola et al. 2021). Australia, on the other hand, adheres to universalist cultures. Woolworths often emphasises right action that could be specified and would always apply in universalism.
Individualism versus Communitarianism: The French people live in a communitarian society. In the workplace, a person’s activities are held accountable by the entire team (Niederle et al. 2020). Australia, on the other hand, has a high Individualist culture, scoring 90 in this category. Employees in the corporate environment are supposed to be self-reliant and proactive. Woolworths, on the other hand, is typically Individualist. However, they must keep in mind that the French prefer making decisions at the workplace depending on actual attempts to keep the rapport (Crosweller and Tschakert 2021).
Achievement versus Ascription: France is a country with a subscription culture. In France, people’s self-esteem is often maintained by human interactions instead of personal accomplishments. Australia, on the other hand, has a culture of achievement. So, Woolworths in France must consider that customers in France appreciate “to just be” instead of “to be doing” (Ernst et al. 2021), and as a result, they will place a greater emphasis on less intentional, more abstract traits instead of particular features.
In summary, Australia’s inhabitants are timely and adhere to a strict schedule. In Australia, deviating from the schedule is frowned upon. Individuals in France, on the other hand, use synchronised time and believe that the past, present, and future are all interwoven. Owing to a dearth of rigidity in France (Wilczewski et al. 2019), individuals work on multiple projects at the same time. In Australia, deadlines are set in stone and strictly adhered to, although in France, flexibility is allowed.
Organisational Behaviour and Global Leadership Effectiveness can help Woolworths better understand the cultural frameworks of overseas nations like France (GLOBE). This idea, as stated in this section of the human resource management assignments, gives the executive a fresh viewpoint on how to perform in a global context (Allen et al. 2019).
The Globe Theory revealed nine distinct cultural elements. 7/9 cultural aspects are very similar to elements in Hofstadter’s cultural dimension. All 9 dimensions are as follows:
The GLOBE Theory, like Hofstede, also has divided nations into groups with identical cultural characteristics. This theory’s groups describe social systems with identical cultural outlines, making it easier to make changes to worldwide venues.
Australia was classified as a colonial country, but France was classified as a Colonising country itself. When the cultural differences and associated influence on Australia and France are compared, a tendency for a specific leadership style that is congruent with the cultural point of view centred on their different clusters emerges.
While operating overseas, that far from one’s nation, “cross-cultural management” refers to reconciling differences in cultural traditions, and it tends to end up taking a comparative approach.
As Woolworths’ business operations have evolved as a result of globalisation, so have the sorts of assignments and foreign management positions available. When discussing its strategy, Woolworths frequently employs the phrase VUCA, which refers to the obstacles that executives face in the workplace (Troise et al. 2022). Such issues are substantially more prevalent in overseas assignments:
Cultural shock is a reaction a person may have when they are placed in a cultural setting that is vastly distinct from their own. Culture shock is divided into four stages: honeymoon, adaptation, negotiation, and adjustment. Woolworth experiences culture shock as a result of disparities in French languages and cultures.
There are many various factors of cultural shock that could affect Woolworths’ business and expansion. Unexpected regulations for an unfamiliar area and climate, expectations, different attitudes, and social contact will all contribute to Woolworths’ cultural shock in France (Kostis et al. 2018).
Owing to cultural shock, massive difficulties like technological gap, monotony, endless regression, data overload, skill dependency, generational divide, and language barrier may arise in France for Woolworths. There is no means to avoid or mitigate cultural shock in the workplace.
An expatriate’s qualification profile: it could be an issue for Woolworths to find a qualified candidate who’s suitable for the open positions. Traits and characteristics must be identified as determinants of performance and growth for expatriates. Emotional stability and maturity, administrative skills, language proficiency, diplomatic, cultural empathy, and analytical aptitude are among such abilities and attributes.
Suitable expatriate recruitment: The selection of prospective expatriates is a key function of HRM that must be carried out properly and sustainably in Woolworths. Nevertheless, the subsidiary may confront a serious problem. Woolworths would be unable to measure and determine technical and professional talents within the company due to this issue. It is an excellent HRM practice to avoid widespread cultural shock (Han et al. 2022). Before transferring a worker abroad, the factors must be considered which are challenging to assess precisely and effectively. This should aid in the reduction of cultural disparities across nations.
Issues relating to performance management in the Host Country (HCNs)
The French might be unimpressed with the Australian managers. The recognized individuals are favoured in mergers, which is a regular problem. Due to a problem with the Human Resources framework, there were no formal interviews and no 360-degree feedback. Establishing a comprehensive appraisal mechanism that comprises a 360-degree feedback method, impartial assessment of both sides’ managers, and ensuring that they grasp the firm’s fundamental aims and objectives is one strategy to address the competing values. All parties would gain a better understanding of their power as a result of the appraisal approach, which would regularly check their performances. As a result, a 360-degree review is critical for the firm to improve employee performances & ensure that staff development is achievable.
Woolworths cannot survive its business activities and operations without knowing and understanding the culture of France. The problem of delivering continuous training grows if Woolworths is international or geographically diverse. Virtual training requirements, translation concerns, language barriers, increasing prices, and regional limits are some of the most prevalent training and development issues.
Training and development leadership would be an effective Human resource management technique that aids in improving and enhancing employees’ performance. In addition, to avoid culture shock, HR management must keep track of the employees’ functions and processes. Woolworths runs extensive training and development initiatives to help employees learn and comprehend the languages of other countries. This will aid in the management of organisational culture difficulties and obstacles.
Conclusions and/or Recommendations
Conclusion
Notwithstanding the importance of domestic environmental conditions, Woolworths’ parent country prefers to apply the same (Australian) HR management standards to its subsidiaries, such as France, that are all part of the MNC. Woolworths, on the other hand, cannot rely entirely on one human resource effort or core emphasis, according to previous studies in International Human Resource Management (IHRM). Woolworths uses a logical bundle or portfolio method to select interconnected HR interventions that are aimed at achieving organisational goals drawn from the company’s strategy. Regardless of human resources, approaches are multidimensional, yet they are critical for an organisation’s profitability and productivity. The current debate highlights the issues that Woolworths may encounter in both the host and home countries. The report also included a possible recommendation that could be valuable to the respective firm in reducing the severity of the issues highlighted.
Woolworths can adopt the following approaches to overcome hindrances in its HRM practices and functions:
Convergence and Divergence Strategies: These methods could be used to assess how globalisation factors affect IHRM practises. Individuals from countries with a high uncertainty avoidance index, such as France, might be less eager to work in high-risk subsidiaries for fear of the company failing (Volleroet et al. 2022). This causes tension since the local forces wouldn’t quickly yield to the dominance of the Australian factors. The dilemma theory as well as the resulting HRM transference tension have been used to inform this project. Labels relate to a collection of HR management transfer options that can be implemented. It is precisely through these that the 2 parties designate and assign ownership to the alternatives. The dominant labelling, contextual label, and synergy label were among them. With exception of ethnocentric or polycentric alternatives, for example, the presented alternatives are a methodology, — in other words how all parties want the HRM practices to be carried out.
Ethnocentric, Polycentric and Global Strategies: These measures could be employed to evaluate the correlation among global corporate strategy as well as the Human resource management practices which emerge as a consequence of those strategies. When applying wage structures in Woolworths’ subsidiary along with its activities in France, for instance, localised cultural concerns must be taken into account. Likewise, with Woolworths’ French subsidiary, the necessity of combining French and Australian HRM methods. With a worldwide strategy that falls somewhere between polycentric and ethnocentric, the MNE could seek to overcome the ethnocentric (global integration) and polycentric (local response) conundrum. This could be accomplished by combining HRM practices from the HQ and the home nation. Woolworths will prefer to establish standardised (imported) HRM strategies within their French subsidiary, however, this is difficult to accomplish.
Bridging the Gap via Mentorship: There ought to be a distinction among young and elderly employees. If this divide leads to new employee culture shock, it must be addressed. For mitigating culture shock, a mentorship framework amongst new staff and management must be developed. Mentorship is essential for quickly and successfully managing culture shock. It’ll also assist in learning the organisation’s aspirations, objectives, and aspirations.
Induction Programs: Induction programmes are a type of structured training. It’s among the most important practices carried out by HRM at Woolworths. Induction programmes would be a highly efficient and engaging approach to introduce new employees to company policies, such as HR regulations, work schedules, accounting policies, performances, leave entitlements, and performance appraisal (Patel et al. 2018). It will be the ideal and one-of-a-kind eye-opener for managing cultural variances amongst fresh recruits.
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