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Managing HR in Global Business

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Managing HR in a Global Business Environment INDEX Topics Introduction Culture Cross border strategic HRM Knowledge management Talent retention Training and development Managing Customer Relations References Appendix:- Ritz hotel case study Introduction:- Japan has a population of approximately 125 million people packed tightly into a rather small geographic area. The official language in Japan is Japanese. Japanese is spoken only in Japan. The literacy rate in Japan is very close to 100 percent and 95 percent of the Japanese population has a high school education. Japan's form of government is parliamentarian democracy under the rule of a constitutional monarch. The Prime Minister is the chief government officer. The dominant religion is Shinto, which is exclusive to Japan. However, the Japanese have no official religion. Culturally, the Japanese tend to be somewhat introverted in their ways. They generally are not receptive to outsiders. When conducting business in Japan relationships and loyalty to the group is critical for success. 'A chain is only as strong as its weakest link' The challenge of HR managers is to hunt for human talent and make sure the company selects the right person for the right job. Only then all the links in the chain will be equally strong. Today, managing the expectations and motivations of a skilled workforce has brought with it attendant complexities in terms of the need for robust HR practices and organizational procedures. Earlier considered a support function for any business, HRM today is required to take on a more strategic role in order to align itself with the organization's business strategies. Hence, the HR manager is expected to take on the mantle of a business partner along with managers of other line functions, in driving the firm's strategies. The shift in focus from traditional HRM to strategic HRM was inevitable. Competitive advantage for an organization lies not just in differentiating a product or service or in becoming the low cost leader but in also being able to tap the company's special skills or core competencies and rapidly respond to customer's needs and competitor's moves. ...read more.


A hotel should be able to gel in its own culture to that of the environment it operates in. Understanding the local culture is also very important for a hotel in order to attract the best talents in the area in order to have highly motivated employees. Japan is a large country with the population of 127,288,416 (July 2008 EST.) The population is divided into the following age structures:- 0-14years:13.7% (male 8,926,439/female 8,460,629) 15-64years:64.7% (male 41,513,061/female 40,894,057) 65 years and over: 21.6% (male 11,643,845/female 15,850,388) (2008 EST.) The main language in Japan is Japanese 98.5%, Koreans 0.5%, Chinese 0.4%, other 0.6% , English is used widely in Japan now a day because of new companies coming into Japan. The Literacy rate is very good people above 15 years of age can read and write. Male: 99% Female: 99%. The key to creating a consistent corporate culture across multiple locations is maintaining the critical balance between a strong corporate culture and local cultural differences, thus achieving equality and diversity. A common corporate culture along with the Japanese local culture can be achieved in the following ways: * Communicating to all locations about a common corporate culture. * Allowing local Japanese cultures to maintain their identity in the context of the corporate culture. * Establishing common systems (e.g., accounting, marketing, MIS). * Providing management with education outlining how the company does business. * Creating an organizational mission with input from all locations. * Creating a written strategy outlining the corporate culture. 2. Cross-border strategic HRM The global human resource manager involved in selecting appropriate global human resource strategies and practices should keep in mind that every country has a different culture. He should keep in mind that while culture is always changing and evolving, his hotel has to make sure that they are not seen as offenders of local cultures in the cities they will be present in. ...read more.


In-Basket Exercise: - Also known as In-tray method of training. The trainee is presented with a pack of papers & files in a tray containing administrative problems & is asked to take decisions on these problems & is asked to take decisions on these within a stipulated time. The decisions taken by the trainees are compared with one another. The trainees are provided feedback on their performance. 6. Managing Customer Relations "CRM (Customer Relationship Management) is a business strategy built around the concept of being customer-centric. The main goals are to optimize revenue through improved customer satisfaction via improved interactions at each customer touch point. This can be accomplished by a better understanding of customers, based on their purchasing patterns and demographics, and better information empowerment at all customer touch points, whether with employees or other media interfaces. In order to have a successful CRM campaign it is vital for the hotel to first identify the culture, likes and dislikes of the general customers and then train the hotel's staff to successfully implement the company's CRM systems which should be designed specifically for the general customer. CRM includes many aspects which relate directly to one another: * Front office operations - Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc. * Back office operations - Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance, manufacturing, etc.) * Business relationships - Interaction with other companies and partners, such as suppliers/vendors and retail outlets/distributors, industry networks (lobbying groups, trade associations). This external network supports front and back office activities. * Analysis - Key CRM data can be analyzed in order to plan target-marketing campaigns, conceive business strategies, and judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability).2 It is extremely important for the hotel to have the best customer relationship management methods and practices designed to cater guests from all over the world and with different background as Japan plays host to guests from all over the world. ...read more.

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