UNIVERSITY OF GREENWICH

Assessment 2: Report
 TABLE OF CONTENTS

INTRODUCTION ..................................................................................................................... 3

INTERNATIONAL STAFFING: SHORT AND LONG-TERM STRATEGIES ......................................... 3

PAY AND REWARDS DIFFERENCES ACROSS EUROPE ............................................................... 7

BREXIT - ITS IMPACT ON THE HOSPITALITY INDUSTRY AND THE FREE MOVEMENT OF PEOPLE 9

CONCLUSION ....................................................................................................................... 11

REFERENCES ........................................................................................................................ 12

APPENDIX............................................................................................................................ 20
 INTRODUCTION
Greenway Hotels Group, Plc, a hotel chain in key urban areas around the United Kingdom,
recently implemented its globalization strategy by acquiring a small hotel chain in France named
"Hôtel de Charme," which currently has 40 hotels and employs around 1,500 employees. With
the strategic goal of gradually developing the organization on schedule and within budget,
Greenway executives have determined that half of the hotels in France will be maintained and
rebranded as part of the "Greenway Hotel Group", whereas the other half will indeed be sold.
However, the group is experiencing HR issues, which finds it hard to develop an HR strategy to
ensure the success of this new endeavor in France. As a result, the major purpose of the report is
to provide them with recommendations and advice on HR concepts for their internationalization
in France and other European nations. The report is developed into three main parts for the
purpose of a more thorough and in-depth analysis.
The first section of this report discusses the recruiting idea and HR solution to Greenway's
internationalization plan through the acquisition of a small hotel chain in France. The idea
presented is to apply Ethnocentric to short-term strategy and Regiogentric to long-term strategy.
This part also examines the difficulty of human resource management in France and suggests
remedies. In the second section, the report examines the distinctions of the only HR policies and
practices the board should take into account, which are pay and rewards in the UK and France.
Finally, the third section mainly focuses on analyzing the issue and impact of Brexit on
Greenway's business in France. Simultaneously, propose ways to enhance it.
INTERNATIONAL STAFFING: SHORT AND LONG-TERM STRATEGIES
In order for Greenway's internationalization plan through the hotel chain in France to
operate successfully, the recommendation of the writer is to apply Ethnocentric for short-term
strategies, and Regiogentric for long-term strategies.
Short-term strategies

In the short-term strategy, the recommended approach is to apply an Ethnocentric staffing

approach, which will take one to two months to implement. With a centralized organizational
component (Mohmand, 2014), ethnocentric staffing entails filling the most significant jobs in
overseas subsidiaries with expatriates (Perlmutter, 1969; Vidal, M.E.S., Valle, and Aragón, 2007;
Isidor et al., 2011). The ethnocentric approach emphasizes the cultural values and commercial
practices of the parent company, therefore; all the foreign subsidiaries have to follow and apply
managerial and staffing styles systematically (Francesco and Gold, 1998; Treven, 2001).
The ethnocentric technique benefits workers with opportunities for multi-national
orientation via relevant experience at the parent firm (Francesco and Gold, 1998; Treven, 2001).
Cultural similarities with the main firm ensure diverse business and management practices are
transferred, allowing for tighter supervision and closer coordination of overseas subsidiaries for
the headquarters (Mohmand, 2014). Furthermore, it helps to build a large pool of internationally
experienced executives for the parent country (Gómez-Meja, Balkin, and Cardy, 1995). However,
certain drawbacks to the ethnocentric approach should be considered. When applying the
ethnocentric method, the subsidiary may have adaption issues, such as difficulty adapting to the
local environment and culture (Treven, 2001; Mohmand, 2014). The corporation may incur
significant transfer fees and salary expenses; shifting managers to subsidiaries may result in
personal and family difficulties, and it may be more likely to result in a high failure rate (Gómez-
Meja, Balkin, and Cardy, 1995; Lakshman, Lakshman, and Estay, 2017). Moreover, it also has a
negative impact on the morale and motivation of local management, subsidiaries may be subject
to regional political limitations, among other things (Gómez-Meja, Balkin, and Cardy, 1995).
The management and personnel strategy of an international organization has a
considerable impact on the type of employees and the company's performance (Treven, 2001).
Thus, an ethnocentric corporation enables the parent company to deploy national people in
important positions to manage and administer the subsidiaries (Caligiuri and Stroh, 1995; Shen
and Edwards, 2004). Using ethnocentric staffing as a short-term approach in the early phases of
Greenway's integration, the new hotel chain will be managed, directed, and operated by parent
business employees who are well-versed in the firm's laws and regulations. They can better
guarantee that the parent company's values are transmitted, aligned, and maintained to its
subsidiaries (Treven, 2001; Minbaeva et al., 2003). Employees will then provide balance to the
group and strive for constant coordination for the group in the worldwide environment using this
strategy (Lakshman, Lakshman, and Etay, 2017). Furthermore, numerous changes occur often at
the start of internationalization; the most important thing is to unify the operation in the chain
of subsidiaries, and the changes will be better controlled in this way (Gómez-Meja, Balkin, and
Cardy, 1995; Johanson and Vahlne, 2015). Japanese corporations such as Panasonic, Sony, and
Hitachi (Lehmberg, 2015) are ideal examples of using an Ethnocentric approach since it brings
effective communication to parent companies and subsidiaries. It also helps them attain
operational efficiency and corporate consistency, according to Lehmberg (2015). However, if
used for an extended period of time, this strategy involves hazards. According to The New York
Times (Landler and Barbaro, 2006), Wal-Mart, a singularly strong American corporation, lost
hundreds of millions of dollars in Germany in 1998 as a result of its arrogant attempt to impose
its value on the rest of the globe.
Long-term strategies

In the long-term strategy, the recommended approach is to apply regiocentric staffing.

Regiocentric staffing entails employing employees inside the region where the corporate
subsidiary is located (Perlmutter, 1969; Taylor et al., 1996; Harvey et al., 2001; Shen and Edwards,
2004). MNCs who pursue this method divides their corporate offices into areas, and workers can
be relocated inside the region but not outside of it (Grimsley and Heinichen, 2015; Powoh, 2016).
The regiocentric strategy argues that all of the region's countries may be viewed as a unified
market, allowing for significantly higher economies of scale (Wiktor et al., 2008).
The key benefit of regiocentric staffing is executives manage the firm easily transfer
between regional headquarters and subsidiaries (Caligiuri and Stroh, 1995; Shen and Edwards,
2004; Preece et al., 2013). Managers from a similar culture may have fewer challenges and can
adjust while bringing experience from a different place (Cuervo-Cazurra and Genc, 2008; Isidor
et al., 2011). As a result, it is less expensive than recruiting immigrants from diverse nations and
cultures. A regiocentric approach, however, has several drawbacks. It can result in regional rather
than national federalism and limit career opportunities for managers inside the region
(Perlmutter, 1969; Heenan and Perlmutter, 1979; Shen and Edwards, 2004). Another issue is that,
while most cultures are similar, occasional distinctions might generate conflict (Palthe, 2009).
Furthermore, the manager chosen from a certain location may lack international expertise,
causing misunderstanding between localized and global aims (Morcos, 2018).
 When utilizing a long-term Regiocentric staffing method, Greenway may better allocate
resources through regional optimization, which helps to gain synergies within activities and
enhances overall efficiency (Heenan and Perlmutter 1979; Daniels, 1987). This pooling of
resources also lowers Greenway's development expenses (Ferencikova and Schuh, 2003).
Cooperation can also help to standardize marketing initiatives across the area, allowing for
economies of scale and speedier transmission of successful programs (Isidor et al., 2011; Drachal,
2014). Furthermore, due to a narrower range of authority, it is simpler for them to monitor and
oversee overseas subsidiaries regionally rather than centrally from corporate headquarters
(Wind et al., 1973; Schmid and Machulik, 2005). Mura et al. (2017) discovered that the Visegrad
Group (businesses operating in Central Europe such as Slovakia, Czech Republic, Poland, and
Hungary) mostly use a regiocentric approach to human resource management. They noticed that
its advantage is knowing the regional conditions and selecting qualified people who are
completely aware of the regional realities. Furthermore, it also provides better economies of
scale than polycentrism since it treats countries within a region as a unified market.
Challenges of Managerial Staffing

Currently, in Europe, owing to open labor markets, there is a large flow of personnel, which
impacts the way the firm and such a group of employees are managed (lusarczyk, 2017; Bilan et
al., 2019; Mijatovi et al., 2020). As Greenway's primary business, the quality of the hotel services
provided is heavily reliant on the staff and how they are handled. Managing a multinational team
of employees in the service business is substantially more challenging (Klimecka-Tatar, and
Ingaldi, 2021), and this is one of Greenway's primary issues in management staffing in France.
The author has offered three major points to avoid these difficulties. Initially, the cultural
environment is significant in the settlement of most difficulties in all phases of the IHRM process
(Dickmann and Müller-Camen, 2006; Briscoe et al., 2012; Klimecka-Tatar, and Ingaldi, 2021). This
requires managers to consider multiculturalism in personnel policy formulation, values, mission,
and communication patterns, constructing training courses and ongoing training, offering
assistance to managers and executives in preventing culture shock and also establishing
procedures for business dissemination of cultural diversity (Klimecka-Tatar, and Ingaldi, 2021).
Second, managing a multinational workforce necessitates a thorough awareness of employee
expectations (Roberts et al., 1998). Following that, the multinational management team may
establish reporting formats that are easily adopted by employees, are recognized standards, and
are functional. Finally, open communication promotes a feeling of community in the workplace
(Nguyen, 2020; Cui, 2021). BMW's global workforce, for example, exchanges ideas through virtual
collaboration technologies and tools that add value to their work (Morris, 2021). This connectivity
improves collaboration by guaranteeing that the international workforce is included in all
company plans and decisions.
These are the three main aspects that Greenway must take into account when
implementing IHRM principles to manage resources, improve service quality, and shift the
growth strategy from regional to international.

PAY AND REWARDS DIFFERENCES ACROSS EUROPE

As Greenway develops its company in France and other European nations, pay and reward
should be regarded as a key role of human resources. The author mentions three aspects that
influence the major pay and reward factor: union existence, non-cash benefits, and Masculinity
and Femininity.
The labor institutions in the two nations differ significantly. First, employee representation
patterns at the company level are fundamentally different (Belfield et al., 2007). Although in
France, industrial agreements have kept a major impact on basic pay at the organizational scale,
in the United Kingdom, this level of negotiating has virtually vanished from the private market
(Glassner, 2011; Doellgast, 2022). Furthermore, in France, the working processes of employment
relations have stayed intact, but in the United Kingdom, the previous system of labor relations
has seen a significant fall (Belfield et al., 2007; Gumbrell-McCormick and Hyman, 2019).
The extent of state participation in attempting to affect businesses' decision of
compensation schemes has been another significant variation (Belfield et al., 2007). For many
years, successive French governments have pushed profit-sharing and worker-share ownership
schemes, making it mandatory for enterprises including more than 50 workers to implement
financial involvement measures (Pendleton et al., 2001; Belfield et al., 2007; Poole, 2017). In
contrast, in the United Kingdom, businesses have had far greater local autonomy in selecting
managerial and pay structures, with the exception of fiscal support for profit-sharing and
employee-share ownership (Belfield et al., 2007; Poole, 2017).
In France, the usage of merit pay is significantly related including an establishment's
placement inside the utilities or structures differ, but in the United Kingdom, it is primarily
correlated with the business and financial services industries (Belfield et al., 2007; Bach and
Kessler, 2021). Furthermore, there are more considerable coefficients on industries in France
than in Britain, showing a bigger sectoral effect on pay system choice (Unger et al., 2020).
Union presence

A large local union representation may favor either the elimination of incentive
compensation or a focus on communal bonuses (Belfield et al., 2007; Marsden and Belfield, 2010)
The implementation of profit-sharing in France is favored by a powerful union presence as
well as the existence of a healthy workplace relations atmosphere (Belfield et al., 2007;
Triantafillidou and Koutroukis, 2022). A favorable atmosphere also tends to favor the adoption
of merit pay, which is understandable given that this type of incentive pay needs a degree of
mutual confidence in order to motivate (Folger and Cropanzano, 1998; Kang and Lee, 2021).
In the United Kingdom, the association between a favorable environment and the usage of
merit pay is likewise positive, albeit not statistically significant (Checchi and Mattei, 2021; Yoo
and Eom, 2022). Even in its most basic form, it is apparent that the choice of incentive pay and
reward system is determined by the selected variables: employment size, technologies,
organizational characteristics, industry, and the type of product markets (Belfield et al., 2007).
Furthermore, this impact is stronger in France than in the United Kingdom (Belfield et al., 2007;
Checchi and Mattei, 2021), which is an important part that Greenway should concentrate on.
Non-cash rewards

Differences in the mix and relevance of non-cash perks in value packs are similarly great
across nations (Hegewisch, 1992). For instance, it is now widely accepted that Britain is
the country in which the corporate automobile plays such an important role in the executive
compensation package (Harvey, 2020). Similarly, the focus in the United Kingdom is on parental
advantages such as office daycare (even if in fact, only a few employers have begun to supply
them) (Amjahad, 2022). Tradition and cultural preferences greatly impact the design of benefits,
perhaps even more than incentive-related pay aspects (Hegewisch, 1992).
France is a notable exception to this tendency. While in other nations, perks are frequently
used to increase salary in a tax-efficient manner, non-cash benefits are viewed as precisely
equivalent to money remuneration in France (Csáki et al., 2012). This, together with a historical
predilection for "cash-in-hand," justifies the slow change rate in the welfare payments sector.
Masculinity and Femininity

Aside from the two variables mentioned above, Greenway must address cultural variations
between Britain and France in pay and reward, which should focus on Hofstede's cultural
component in analyzing Masculinity and Femininity. In terms of the dimension of Masculinity and
Femininity cultural context, the Masculine emphasizes assertiveness and monetary
compensation for economic success, which is related to performance, while the
Feminine emphasizes non-financial rewards and living standards (such as childcare facilities and
vacation breaks in rewards programs) for success, which would be recognized as the intrinsic
reward (Hofstede, 2001; Chiang 2005; Mohammed et al., 2008; Chiang and Birtch, 2012). As
shown by French and Weis (2000); Hofstede Insight (2022), France has a Masculinity rating of 43,
indicating that it is a Feminine nation. Nevertheless, in the UK, it is considered a strong Masculine
culture due to a score of 66 in Masculinity (Mohammed et al., 2008; Hofstede Insight, 2022).
Nonetheless, with a Masculinity rating of 66, the UK is regarded to have a strong Masculine
nation (Mohammed et al., 2008; Hofstede Insight, 2022).

BREXIT - ITS IMPACT ON THE HOSPITALITY INDUSTRY AND THE FREE MOVEMENT OF PEOPLE

Brexit relates directly to Britain's choice of exiting the EU after holding a referendum in
which 51.9% of voters opted to leave the EU on June 23, 2016 (Ford and Goodwin, 2017; Ben
Ameur and Louhichi, 2022). The vote to exit the EU had a number of ramifications for regulatory
and supervisory frameworks, as well as European economic integration (Ben Ameur and Louhichi,
2022).
The implications of this judgment have been far-reaching, affecting various businesses,
including the hotel industry (Dashper and Finkel, 2020), Greenway's major field. According to an
industry poll (Barnes, 2022), UK hospitality firms have lost approximately 200,000 foreign
employees since the end of 2019, as a result of the impact of Brexit as well as the coronavirus
outbreak on the employment market. According to the most recent numbers published in the
Financial Times by Barnes (2022), there are around 172,000 EU residents working in the
hospitality business, a decrease of almost 41% from the level of over 293,000 employees prior to
the pandemic. Furthermore, 43% of firms stated they had to curtail operations due to workforce
shortages, and 89% said strict immigration regulations hinder them from recruiting from outside.
However, there is not much distinction between before and after Brexit traveling laws from the
UK to European nations like France (Yearsley, 2021). However, Brexit does have an influence on
immigration restrictions, as well as firms and employees from the UK working in other EU nations
and vice versa (Kordos, 2019). Brexit has complicated commercial and work-related travel inside
the EU for the cross-border services industry (Marouf et al., 2022). Professional credentials will
most certainly be required in the professional services industry, which includes auditing, legal
services, consulting, and other services (Yearsley, 2021). Businesses such as Greenway must
guarantee that their services are not subject to national limitations in particular member nations
and that all commitments are satisfied. Similarly, visa limitations may impact Greenway workers
in the host country's travel to France and other EU nations. This increases the complexity and
cost of moving and working overseas (Cohen, 2018).
For many organizations, the greatest immediate longer-term HR impact of Brexit will be on
talent and labor markets (Ridgway, 2019), and this is an area where analytics and modeling may
give genuine insight (Gosling, 2016). Brexit will have a wide-ranging impact on employees and HR
departments alike (Fletcher and Schofield, 2021). Greenway must focus on establishing the
necessary circumstances for employees, including visas, budgets, and other factors while
transferring them to France and other EU nations. Furthermore, rising and unpredictable cost
constraints will significantly influence talent and labor markets, and employee engagement and
motivation will be a major concern (Gosling, 2016). Greenway must anticipate future talent and
labor market situations (mobile workforce, cost) to guide business choices. Modeling scenarios
is required to determine who is affected by future changes in workforce turnover and to give
targeted support as needed (Fulton et al., 2015). Examining critical talent succession planning
and identifying viable alternative talent pools for usage if transfer staff policy becomes more
restricted (Hartmann et al, 2010; Rothwell, 2010).
CONCLUSION
The author has recommended two human resource methods for Greenway's
internationalization strategy, Ethnocentric in the short term and Regiocentric in the long term,
through the acquisition of a small hotel chain in France. Simultaneously, the author evaluated
the issues in human resource management in France and provided remedies. Furthermore, the
author researched and evaluated the differences in HR rules on compensation and awards
between the United Kingdom and France. Finally, the problem and impact of Brexit on
Greenway's business in France have been investigated, appraised, and remedies have been
provided.
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