Gamescorp plc, a fast-growing UK-based chain of computer software stores which specialises in the sale of discounted computer games and related products.
Shops are now open in Paris, Berlin and Milan and have now been trading successfully for three years. Now, as planned, Gamescorp aims to move into other regions of the world, and plans to open outlets in China.
As before, the new stores will be very similar to those already existing in the UK. They will carry the same broad range of stock and will be laid out and decorated in the established corporate style. Importantly, as is the case in the UK stores, the intention is that they will be staffed by knowledgeable enthusiasts who combine commitment to high standards of customer service with effective selling skills. Although local managers will be permitted some flexibility in terms of the number and status of their employees, the strong corporate identity already developed will be maintained wherever a store is opened.
The company has approached you, as an experienced HR consultant, to advise them about the key HRM considerations for establishing their business in China. Your report should address the following key areas and make clear the reasons for your recommendations:
o What are the key cultural differences between China and Europe and what significance will these have for the HRM approach?
o Should the orientation of the organisation be ethnocentric, polycentric or geocentric?
o What policies and practices would you recommend for the recruitment and selection of local staff?