International HRM Challenges And Strategies Case Study Sample

Introduction Of International Human Resource Management Challenges And Strategies

A planned strategy for effectively overseeing the staff of an organisation, at global level, to meet its objectives and goals is called international human resources management (IHRM). It involves organising workers employment, hiring, instruction and oversight with the goal to optimise effectiveness while adding to the company's success as its entirety. The current report is based on the case scenario of McDonald's, an American quick-service restaurant, which ranks amongst the most prominent in the entire globe. It is famous for its French fries, Large Macs and burgers in general. It has become amongst among the most profitable companies throughout the history of business. As an international human resource management (IHRM) advisor, this report seeks to critically assess the human resources (HR) and cultural factors that McDonald's must consider while establishing an outlet in Kenya. It will consider IHRM advantages and potential disadvantages associated with the McDonald's establishment in Kenya as compared to other nations.

Cultural Issues

Important issues related to the cultural element in the current context

• Varieties of Religion- Kenya is recognised for its vibrant diversity of cultures, featuring an extensive number of ethnic populations, dialects, and cultures existing peacefully (Mate, et.al and 2019). The variety needs to be recognised and appreciated by McDonald's across its workforce and clientele. Positive brand perception can be greatly improved by creating a diverse work environment and demonstrating understanding of culture.
• Ethics at Workplace- The culture of work in Kenya might be somewhat distinct from McDonald's worldwide standards. Effective operations and the establishment of solid collaboration among workers rely on a comprehension of as well as commitment to regional workplace morality, particularly accuracy, communication methods and structure.
• Communication habits- Communications that is effective is crucial for overcoming divides between cultures (Hamza and Karabulut, 2021). McDonald's needs to be thinking with taking on native employees who are proficient in their native tongue and have knowledge with the traditions of the area. Ensuring consistency throughout each location and guaranteeing the company's image is favourably recognised by consumers as well as workers relies on an open exchange of McDonald's values and objectives.
• Conversation Techniques: Kenyan language may be quiet and respectful, contrasted with comparable Western customs where communicating can be more forceful (McDonald and Mitra 2019). In order to ensure positive interaction throughout an organisation, HRM needs to be conscious of all these intricacies.
• Honour and Leadership: In Kenyan civilization, acceptance of the power structure is essential (Horak, et.al, 2019). Individuals ought to be conscious of the correct way to address supervisors and communicate with colleagues, and HRM ought to strive for an atmosphere of dignity.
• Individualistic thinking vs. Collectivism: Kenyan culture tends to be communal and promotes connects to one another and home. HRM ought to recognise each person's contribution while promoting collaboration and working together. Both team and individual successes ought to be considered into consideration when performing assessments and awards.
• Punctuality: In Kenyan cultural backgrounds, timing is highly regarded and workers are usually required to arrive and show that comee on time for their appointments and duties (Hamza and Karabulut, 2021). HRM ought to create unambiguous standards for speed and manage issues with regular late.
• Gift-giving: In Kenyan culture, delivering gifts is typical, especially for major events. To prevent possible favouritism or disagreements, HRM ought to formulate policies regarding exchanging presents in the place of work.
• Nonverbal interaction: Physical expression and other non-verbal signals may be received differentially in various cultures. In order to prevent misconceptions or crime, HRM must educate employees about the value of nonverbal communication.
• Participation and Multicultural: In order to create a welcoming environment for employees from varying backgrounds and cultures, HRM ought to vigorously promote inclusive and multicultural attempts (Gontur, et.al, 2022). Diversity instruction and policies against discrimination constitute elements of such.
• Regard for ageing: The customs of Kenya puts considerable importance on respect elderly. HRM ought to encourage an environment whereby younger workers appreciate their more senior counterparts correctly, specifically when these individuals have served in teaching or management roles.
• Trend Programming: HRM ought to develop accurate, culturally compatible dress code guidelines. As an instance, business settings often ask for modesty and conservative clothing.
• Solution of Problem: Kenyan culture prefers informal methods for solving disagreements since it highlights peace (Cooper, et.al, 2020). Cultural disparities in interpersonal relationships and dispute settlement methods must be put into considerations whenever HRM gets ready to resolve disagreements.
• Languages Capabilities: Given the reality that English and Swahili are often spoken, HRM ought to take language proficiency consideration while utilising and teaching staff. It has to be essential for making sure that everybody can interact adequately at job.

Theories of culture in International HRM and their relevance to the current case of Kenya

Employing theories of culture in international HRM is vital for an effective entrance into this niche market in the framework of McDonald's development in Kenya.

• Hofstede's six elements of culture offer valuable insights. Kenya has a high uncertainty avoidance score, showing a desire for controlled workplaces across its many ethnic groups. McDonald's should thus modify its HR processes to give staff members clear instructions and training (Jadil, et. al. 2022). Kenya additionally performs admirably in individualism, which emphasises self-actualization. This shows that HR practises centred around incentives may be successful in inspiring Kenyan employees.
• The Low/High contextual theory of Hall is pertinent. Kenya is regarded as an environment where connections and context are important in communication. McDonald's has strengthened local ties and take cultural differences into account while conducting HR procedures (Friedmann, et. al. 2023). The emphasis of training should be on fostering interpersonal connections amongst co-workers and highlighting the business' dedication to civic ideals.

Critical evaluation of the impact of culture on managerial decision making in relation to IHRM

By growing in Kenya, a McDonald's will gain the benefit of native employees who have grown acquainted with the social and cultural norms of Kenya as a whole. Such comprehension of culture could be utilised by HRM to create the menus, advertising strategies, and requirements for service with local clients (Waite and McDonald, 2019). Kenyans frequently use English and Swahili, making it simpler for people to interact with customers as well as within the organisation as a whole (Otieno, 2019). By allowing effective instruction and smooth communication among staff and buyers, HRM can capitalise on this cultural advantages. A positive work culture, ethic, loyalty, and delivery times are all frequently highlighted in Kenyan work environment (McDonald's Announces New Growth Strategy. 2023). This knowledge can be employed by HRM to establish a work atmosphere that recognises and promotes these positive traits, creating employees who are inspired and efficient. However, the potential of cultural miscommunications and conflicts is one possible disadvantage to take into account. Employees may be conversant with local customs, but there may still be discrepancies in how they are interpreted and communicated. For example, something is regarded as acceptable or courteous in one culture could be viewed different in another.

Ihrm Issues

Important IHRM issues / potential challenges

There are several issues and aspects which Mcdonald's will encounter while exploring operations in Kenya:

• Process of selection- In order to draw talented locals, McDonald's must create successful recruitment techniques. Understanding Kenya's employment landscape, its population composition and those seeking employment's interests is essential for accomplishing that. Engaging nearby human resources experts with an understanding of employment opportunities may prove advantageous (What is International Human Resource Management? 2023). For companies to promote an atmosphere of belonging amongst workers and connect with the global culture that Kenya signifies, it is essential that there is inclusiveness and diversity in the labour force.
• Training and teaching- Awareness pertaining cultural aspects are crucial so that employees become able to communicate pleasantly and successfully with clients who s belongs from different backgrounds. The exceptional levels of consumer service, safety of food and overall excellence which are linked with the name of McDonald's ought to be emphasised in educational programmes (Horak, et.al, 2019). This might mean changing educational resources to take into account local standards and traditions.
• Remuneration aspects: McDonald's must take into account local wages, the expenses for existence, and labour regulations while designing package deals that are economically relevant with the Kenyan marketplace. Giving advantages including insurance and meals programmes may make employment for an organisation more enticing that may improve satisfaction with work and engagement.
• Administrative and compliance with laws- To remain legitimate and maintain a solid track record, it is important to understand and adhere by Kenyan employment rules and regulations. This means complying by regulations controlling the lowest possible pay, time spent at work, security protocols and employment contracts. To guarantee consistency and legal conformity among all locations, HR procedures and guidelines ought to be meticulously developed in accordance with local employment regulations and legislation.
• Issues in employee retention- The fast food sector face a significant difficulty when it comes of keeping staff members. McDonald's ought to prepare for a high level of turnover while putting attrition-reduction initiatives into effect. Loyalty between employees may be strengthened by offering potential for advancement in their careers and recognition for employee's initiatives (Otieno, et.al, 2019.). Furthermore, it is essential for human resources management that they have an understanding of the various factors which influence attrition in the Kenyan context, including job fulfilment and balance between life and work.
• Occupational Safety and Wellness Rules - To find out the accessibility of expertise and pay demands, McDonald's must conduct an in-depth labour market research. This aspect may impact wages and hiring methods. In the food and beverage sector, following to safety and hygiene necessities is important. McDonald's has to be certain that health and safety requirements in Kenya are strictly adhered to throughout all occasions. That consists of rules to guarantee the health of the food being served and also protections for consumers and workers (Mate, McDonald and Do, 2019). It is essential that put into effect rigorous security precautions and provide instruction regarding such.

Providing benefits that concentrate on a staff member's health in along with earnings may improve satisfaction with work and loyalty. McDonald's needs to be think about offering health coverage, fitness initiatives, and psychological help, tailoring these advantages to the specific medical needs of Kenyan workers and their households (5 problems facing McDonald's. 2023). McDonald's needed to be informed about the Kenyan labour organising scene. It is essential for understanding the structure of organisations and the way these might influence employees. A productive work environment can be sustained through the creation of strategies for effective labour relations, especially processes for bargaining collectively.

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• A shortage of Skill in Specialty Positions: Kenya boasts a broadened labour market, yet sometimes might be challenging to identify individuals who possess appropriate skills or knowledge for specific occupations or sectors. HRM could be having difficulty filling jobs which ask for extremely specific competence.
• Speedy Worker Rotate: High staff turnover rates have prevalent in many different sectors in Kenya. To avert turnover and its related expenses, which include recruiting and instruction expenditures, HRM might require the development of successful loyalty approaches
• Difficult processes for hiring: In Kenya, the employment manipulate, which includes multiple interviews and tests as such, can at times become intricate and dragged out. Locating and selecting the most suitable staff members could require an extensive amount of effort and money for HRM.
• Unpredictable Employee Walkouts: Kenyan company activities might be negatively affected by strike action and protests. HRM has to be prepared to deal with workplace disagreements, engage with organisations if required, while remaining employees as untouched as feasible.
• Poor Knowledge of Worker Benefits includes: It's probable that Kenyan workers occasionally fail to completely understand the advantages that obtain. To get the most out of the worth and practicality of the advantages HRM might want to put forth an investment in training employees regarding it.
• Distinct standards regarding professional morality: While Kenya usually has an excellent work culture, country might be differing requirements for reliability, time was employed, and commitment. For the purpose of maintaining an integrated staff, HRM should address any disparities in commitment to work.
• Ethnic Awareness: While the diversity of cultures comes with advantages if it's not managed effectively, it may also lead to confusion or conflicts. Cultivating empathy for other cultures as well as tackling any challenges associated with different cultures ought to rank among the top goal for HRM.
• The Development and Education of Competencies: Developing economical education programmes which tackle certain skill gaps among the Kenyan labour can be hard for HRM. It might require longer adapting education according to the needs of the area.
• Health and Security Regulations: It may prove challenging to guarantee compliance to safety and health standards, especially in those industries with potential hazards. To avert mishaps and legal violations, HRM must set the greatest emphasis on worker safety while making expenditures in education as well as security solutions.

Theories of International HRM in a cross-border setting and Their Relevance to the Current Case of Kenya

In the framework of McDonald's growth in Kenya, the implementation of theories of international human resources management in a cross-border establishing is crucial for making informed choices.

The International Staffing Model developed by Morgan (1986) indicates distinct staffing methods for large companies, such as polycentric, geocentric, as well as regiocentric. Using a polycentric approach to McDonald's in Kenya would be acceptable. To match with the local customs and labour marketplace, this entails employing Kenyan people locally for crucial positions. It aids in developing a staff that is aware of and responsive to the tastes and demands of the regional market.

The EPRG Model from Perlmutter (1969) classifies business worldwide introductions as ethnocentric, polycentric, regiocentric, and geocentric. A approach that is regiocentric seems appropriate for McDonald's in Kenya. This strategy maintains some global integration while taking regional peculiarities into account. It helps McDonald's to take advantage of its worldwide brand and standardized procedures while adjusting its HR procedures and food choices to Kenyan tastes.

Critical evaluation of IHRM as a business resource integral to international organisational strategies

The populace of Kenya is disproportionately youthful, and that's compatible with the consumer preferences of several eateries that serve fast food (Budhwar, et.al, 2022). Such as McDonald's for the Understanding that advantage enables HRM to hire youthful, energetic employees who may provide the organization with energy and creative thinking. Employees gain by having excellent opportunities overseas when they are employed by an organisation like McDonald's (Cook, et.al, 2019). While establishing programmes for professional development and attracting people who are searching for chances at progress and foreign experience, HRM may take opportunity of this benefit.

In Kenya, McDonald's standing as a reputable company might promote loyalty among staff members. Giving security, opportunities for skilled promotion and a welcoming work atmosphere can assist HRM retain workers engaged and reduce turnover rates. Prospective staff members in Kenya might consider the worldwide standing of the McDonald's company to be attractive (Smith, et.al, 2019). To enhance the quality of the employees, HRM may utilise benefit from this selling point in order to attract the best candidates who wish to begin working for a famous globally company. On the other hand, one possible disadvantage is that employees in Kenya may have high standards due to McDonald's global brand, which might place more pressure on HRM to live up to them and perhaps forms issues with satisfaction with work and performance management.

Conclusion

By summing up the report there are many advantages to extending McDonald's business into Kenya with regard to of the management of human resources (HRM). It can be seen in the report that by exploring business operations in Kenya, McDonalds would become able to access talented personnel. Yet there are also substantial HRM barriers which impacts functioning of McDonald. This in turn includes lack of talent, high rate of turnover, difficult recruitment processes, wage disagreements, perks knowledge, cultural differences etc. It can be stated from the evaluation that varied training demands, conformity to regional regulations, issue pertaining to workers retention, work safety and compensation concerns also imposes problems. For development to be successful, these hurdles need to be addressed while concurrently making use the available advantages.

References

Books and journals

• Budhwar, P., Malik, A., De Silva, M. T. and Thevisuthan, P., 2022. Artificial intelligence–challenges and opportunities for international HRM: a review and research agenda. The International Journal of Human Resource Management, 33(6), pp.1065-1097.
• Cook, M., Lischer-Katz, Z., Hall, N., Hardesty, J., Johnson, J., McDonald, R. and Carlisle, T., 2019. Challenges and strategies for educational virtual reality. Information Technology and Libraries, 38(4), pp.25-48.
• Cooper, E. A., Phelps, A. D. and Rogers, S. E., 2020. Research in nonprofit human resource management from 2015 to 2018: Trends, insights, and opportunities. Employee Relations: The International Journal, 42(5), pp.1055-1100.
• Friedmann, E., Vescovi, T. and WEISS SIDI, M., 2023. Empirical measurement of Hall's communication styles theory: a new marketing segmentation scale. EUROPEAN JOURNAL OF INTERNATIONAL MANAGEMENT (ONLINE), 31.
• Gontur, S., Vem, L. J., Goyit, M. G. and Davireng, M., 2022. Entrepreneurial marketing, corporate reputation, corporate creativity and competitive advantage: A research framework and proposition. International Journal of Business, Management and Economics, 3(1), pp.52-80.
• Hamza, S. and Karabulut, A. T., 2021. Global or Local Strategies? McDonald's Turkey Example. International Journal of Commerce and Finance, 7(2), pp.101-121.
• Horak, S., Farndale, E., Brannen, M. Y. and Collings, D. G., 2019. International human resource management in an era of political nationalism. Thunderbird international business review, 61(3), pp.471-480.
• Jadil, Y., Jeyaraj, A., Dwivedi, Y.K., Rana, N.P. and Sarker, P., 2022. A meta-analysis of the factors associated with s-commerce intention: Hofstede's cultural dimensions as moderators. Internet Research.
• Mate, S.E., McDonald, M. and Do, T., 2019. The barriers and enablers to career and leadership development: An exploration of women's stories in two work cultures. International Journal of Organizational Analysis, 27(4), pp.857-874.
• McDonald, J. and Mitra, R. eds., 2019. Movements in organizational communication research: Current issues and future directions. Routledge.
• McNair, T. B., Albertine, S., McDonald, N., Major Jr, T. and Cooper, M. A., 2022. Becoming a student-ready college: A new culture of leadership for student success. John Wiley & Sons.
• Otieno, A. S., 2019. Influnce of Corporate Visual Identity Rebranding on Customer Perceptions: a Case Study of the National Bank of Kenya Limited (Doctoral dissertation, University of Nairobi).
• Smith, R., Spaaij, R. and McDonald, B., 2019. Migrant integration and cultural capital in the context of sport and physical activity: A systematic review. Journal of international migration and integration, 20, pp.851-868.
• Waite, A. M. and McDonald, K. S., 2019. Exploring challenges and solutions facing STEM careers in the 21st century: A human resource development perspective. Advances in Developing Human Resources, 21(1), pp.3-15.

Online

• 5 problems facing McDonald's. 2023. Online. Accessed through: <https://www.thestar.com/business/5-problems-facing-mcdonald-s/article_b597599e-791d-5d2c-ab03-9cca7f123a2f.html>Accessed on: 19/09/2023.
• McDonald's Announces New Growth Strategy. 2023. Online. Accessed through: <https://www.prnewswire.com/news-releases/mcdonalds-announces-new-growth-strategy-301168170.html>Accessed on: 19/09/2023.
• What is International Human Resource Management? 2023. Online. Accessed through: <https://globalonline.mmu.ac.uk/news-and-events/what-is-international-human-resource-management>Accessed on: 19/09/2023.