The paper 'JB HI FI - Host Country Analysis and International HRM Issues" is a good example of a management case study. JB HI FI was founded in 1974 in Melbourne and has at the moment grown into multiple stores across Australia. The company is among the largest Australian consumer electronics and entertainment equipment’ provider. JB HI-FI has been experiencing rapid expansion all over Australia with a vision to become a leader in the entertainment industry (JB HI-FI, 2014). The company has been utilising state of the art technology in their operations.
This has helped them to save time and money which they have been utilising in their quest for expansion. As the company assumes to venture into a foreign country to do business, there are challenges to overcome (Albrecht, 2001). The Chinese market has been attracting foreign investors into the country. The economic reforms done in China have made the country the best destination for companies who want to start global operations. China has a well-established electronics and entertainment industry, which JB HI-FI can rely on. For JB HI FI, there are opportunities and challenges for expanding to China.
This report analyses JB HI-FI expansion into China and looks at the HR issues that they are bound to face. The report also gives recommendations on how to face these challenges. China and FDI One of the key attractions to doing business in China is the economic reforms. The country opened its economy and started reforming it which has led to FDI relocating to the country. The country has been developing Special economic zones (SEZ) where FDI can be located. Favourable regulations are in place, making it easier for FDI to invest.
The country attractiveness to investors is evident through the current number of FDIs. Electronics and communication is another area that is highly invested in the country (Ahlstrom et al. 2005). China has benefited from technology due to investments by other countries and has a good infrastructure. As firms continue to invest in China, successful management has been a major issue. As JB HI-FI expands to China, they are bound to face some HR issues. The human resource department is faced with several difficulties as they operate in a foreign country.
The company should be ready to deal with these issues in order to reap benefits from the investment (Chen & Wilson, 2003). Human resource issues In international management, human resource has been one of the most important issues. There has been the development of the international human resource models to address the issues (Vance & Paik, 2006). During the early years of globalisation, multinationals adopted standardised human resource model. The belief that coming up with standardised human resource management could lead to more efficiency and effectiveness did not succeed (Jackson, 2002).
This led to the development of the international human resource model. The model could help in addressing the differences that exist in different countries such as culture and organisation behaviour. Despite this, multinational organisations stills face challenges of implementing standardised international human resource management. The human resource department is involved with recruiting and developing the employees with the aim of achieving the company objectives. The human resource department is involved in ensuring that the employees’ welfare is met with the aim of enhancing organisation competitiveness and ensuring it reaches its goals (Maxwell, Blair & McDougall, 2001).
One of the main issues that JB HI-FI will face in China is the hiring of staff. It has been proved that recruiting and maintaining qualified staff in the Chinese market is difficult due to several reasons (Jackson, 2002).
Ahlstrom, D, Foley, S , Young, M.N. & Chan, E.S. (2005). Human Resource Strategies in Post- WTO China. Thunderbird International Business Review, 47(3), 263–285.
Albrecht, M. H. (2001). International HRM: Managing diversity in the workplace. Oxford: Blackwell Business.
Chen, S.H. & Wilson, M. (2003). Standardization and Localization of Human Resource Management in Sino-Foreign Joint Ventures, Asia Pacific Journal of Management, 20(242), 397-408.
Francesco, A.M. & Gold, B.A. (2005). International Organizational Behaviour. Hamilton: Pearson Prentice Hall.
Farrell, D. & Grant, A. (2005). Addressing China’s Looming Talent Shortage, McKinsey& Company, Shanghai, October.
Fryxell, G.E. & Butler, J. & Choi, A. (2004). Successful Localization Programs in China: An Important Element in Strategy Implementation. Journal of World Business, 39, 268–282.
Jackson, T. (2002). International HRM. SAGE Publications Ltd.
JB HI-FI. (2014). Home, retrieved 29 October 2014, https://www.jbhifi.com.au/
Maxwell, G.A., Blair, S., & McDougall, M. (2001). Edging Towards Managing Diversity in Practice, Employee Relations, 23(5), 468 – 482.
Shen, J. & Edwards, V. (2006). International HRM in Chinese MNEs, London and New York: Routledge.
Vance, C. & Paik, Y. (2006). Managing a global workforce: Challenges and opportunities in international human resource management. Armonk, N.Y: M.E. Sharpe.