International Human Resource Management - Germany and China

Abstract

In the age of globalization, most businesses are looking to expand by setting up businesses in different parts of the world. However, all organizations require strategic human resource management (HRM) to focus on the success of such organizations. Strategic international human resource management (IHRM) is nothing but an extension of HRM practices that can work globally for the organization (Nankervis, Compton & Baird 2002: 617). IHRM focuses on understanding the policies, culture, and practices that a multinational enterprise need to master to better manage their local and non-local employees in different countries where the organization has set up branches (Dowling, Schuler & Welch 1994). Since Excelsia International Hotel and Leisure Group are hoping to expand their business from the United States to European countries and non-European countries, they need to understand the IHRM practices in these countries for better management of their employees. Currently Excelsia management have no operational experience of working in other countries, hence they need to focus on understanding the hotel and leisure industry regulations, labour legislations, employment conditions and expectations prevalent in the European Union (EU) countries and non-EU countries. This business report suggests that Excelsia International Hotel and Leisure Group expand their business in Germany of Europe and China in Asia to begin operations in other countries. This report analyses the market conditions for staffing, employment regulations and employee culture in these two countries to explain the IHRM practices that Excelsia management should implement while expanding their operations in these countries. From the business report, it is evident that EU provides great avenues for expansion as the hotel and tourism market is growing. China too is a growing hub for hotel industry. However, the industry practices are not necessarily similar in both nations and Excelsia management must consider the IHRM practices described here to achieve success with expansion of their hotel business.