1. Human Resources Planning for Global Expansion
Chapter 13
Human Resources Planning for Global Expansion

2. Hospitality and Tourism Is a Global Industry
Stages of Global Expansion
1. Domestic operator
2. Market expansion to foreign countries
3. Use of subsidiaries and/or joint ventures
4. Multinational organization
5. Transnational organization

3. Hospitality and Tourism Is a Global Industry
Mode of Entry – The process by which a hospitality organization begins a business in another country.
Subsidiaries – A foreign company operated by a domestic hospitality organization with majority (more then 50%) ownership by another (parent) company.

4. Hospitality and Tourism Is a Global Industry
Joint venture – A foreign branch partially owned by the domestic organization, and partially owned by an entity in the host (foreign) country. Ownership could be a company, several companies, one or more individuals, and/or the government.

5. Hospitality and Tourism Is a Global Industry
Multinational Organization – A hospitality organization with operating units in many countries and regions of the world.
Transnational Organization – A company with operations throughout the world that features highly de-centralized decision-making, is less aligned with its country of origin, and which may have weak ties to any specific country.

6. Cultural Factors Impact International Operations
Culture – A set of learned beliefs, values, and behaviors that influence the way of life shared by the members of a society.
Organizational culture – A set of understandings shared by members of an organization that are relevant and distinctive, that are passed on to new group members, and that influence organizational decision-making.
Socio-cultural – Relating to social and cultural matters.

7. Cultural Dimensions Impact Hospitality Operations
Country cluster – The notion that some countries can be grouped together based upon their population’s characteristics such as language, location, ethnicity, religion, and economic status.
Cultural intelligence – The process by which one learns about a culture, and adjusts thinking and behavior responses when interacting with persons from the culture.

8. Cultural Dimensions Impact Hospitality Operations
Hofstede’s five cultural dimensions:
Power distance
Individualism
Risk avoidance
Rigid gender roles
Past, present and future orientation

9. Cultural Dimensions Impact Hospitality Operations
Generally accepted “truths” in the US that are not universal:
Pay for performance is best
Formal objectives should drive
management actions
Human resources management

10. Focus on International Assignments
Concerns for a manager interested in an expat position:
The political environment
Economic concerns
Exchange rate – The rate at which the money of one country is exchanged (traded) for that of another country.
Inflation – The economic condition that exists when prices charged for products and services increase throughout a country.
Cultural environment
Culture shock – The feeling of disorientation, and an inability to adjust to a cultural environment that is different from one’s own.

11. Focus on International Assignments
Important skills for international hospitality managers:
Cultural sensitivity
Interpersonal skills
Managerial flexibility
Adaptive leadership
International motivation
Intercultural competence
Ability to work with limited resources
Understanding of
international business
Interest
International etiquette
Stress management
Functional skills
Technical skills

12. Focus on International Assignments
Cross-cultural adaptability – The extent to which a person can be comfortable in a different culture.

13. Focus on International Assignments
Concerns that may arise when an expatriate returns from a global assignment:
Next assignment
Reverse culture shock – Emotional and physiological re-adjustments that can occur as one returns from an international assignment.
No recognition for global assignment

14. Managing Employees During Global Assignments
Use Locals or Expatriates?
Advantages and disadvantages of each…