This Exercise Can Be Found On Your Company Fish To Go

This exercise can be found on Your company, Fish to Go, is a quick service restaurant specializing in fish tacos. Your success in the United States has been excellent, and your company has decided to develop an international strategy to further develop your market share. As the vice president for human resources, you have been asked to develop an international staffing strategy. The organization has decided that it makes the most sense to hire host-country nationals to manage the restaurants. Your current Fish to Go managers, earn upwards of $45,000 per year, plus 2 percent profit sharing.

Develop a comprehensive PowerPoint presentation for the company's board of directors that addresses the international staffing strategy for Fish to Go as it expands into Mexico and the UK. Your presentation should include an analysis of the advantages and disadvantages of utilizing a host-country national staffing approach. Additionally, propose tailored compensation plans for managers in Mexico and the UK, considering adjustments to the current U.S. manager compensation structure, and ensuring compliance with local legal requirements. The compensation plans should encompass salary, benefits, and fringe benefits to attract qualified candidates. Furthermore, provide an outline for a training program that prepares new host-country managers with essential information about Fish to Go, making reasonable assumptions about their initial training needs.

Paper For Above instruction

Expanding an American-based franchise like Fish to Go into international markets necessitates strategic planning, particularly concerning staffing and training. Emphasizing host-country nationals (HCNs) as managers in Mexico and the UK can provide numerous benefits while also presenting certain challenges that must be carefully managed. A well-structured compensation plan aligned with legal requirements and a comprehensive training program are vital to ensure successful integration and operational excellence.

Advantages of Choosing a Host-Country National Staffing Strategy

Utilizing HCNs offers significant advantages in international expansion. One primary benefit is their inherent understanding of local culture, consumer preferences, and business practices, which facilitates smoother operations and better customer engagement (Harzing & Pinnington, 2011). HCNs also tend to have superior language skills and local networks, enabling more effective marketing and supplier relationships. This cultural and contextual familiarity often results in higher employee morale among local staff, as they see leadership that understands their environment (Brewster et al., 2016).

Furthermore, employing HCNs can reduce costs associated with expatriate assignments, such as relocation, housing, and international compensation packages, aligning with global strategic cost management (Scullion & Collings, 2016). It enhances the company's reputation as a local employer, which can improve community relations and brand perception (Wood & de Cieri, 2007). Given the complexities of managing international labor laws and customs, HCNs provide legal and cultural compliance that expatriates might lack, easing the international human resource management process (Dowling & Welch, 2011).

Disadvantages of Choosing a Host-Country National Staffing Strategy

However, there are disadvantages to relying solely on HCNs. Cultural differences within the host country can pose challenges, leading to misunderstandings or conflicts if not managed appropriately (Caligiuri & Lazarova, 2001). Selection processes may be less straightforward, with a limited pool of managers possessing the necessary skills and experience, especially in specialized industries like quick-service restaurants (Costigan & Berman, 2008). Additionally, HCNs might lack the corporate culture understanding or loyalty intrinsic to expatriates, potentially resulting in alignment issues or higher turnover rates (Härtel & Ashkanasy, 2010).

Another challenge involves balancing the transfer of corporate values and operational standards while respecting local customs. Resistance to corporate practices or policies may occur if not adapted thoughtfully. Finally, legal complexities regarding employment law, wage standards, and benefits can vary significantly between Mexico and the UK, necessitating careful compliance management (Brewster et al., 2016).

Compensation Plans for Mexico and the UK

Developing tailored compensation plans requires understanding each country's legal standards, economic environment, and labor market conditions. In the United States, Fish to Go’s managers earn approximately $45,000 plus profit sharing. This structure must be adapted for Mexico and the UK to attract qualified local managers.

Mexico: The average managerial salary in Mexico’s food service industry varies but generally ranges from MXN 300,000 to MXN 600,000 annually ($15,000 to $30,000 USD), depending on location and experience (OECD, 2022). Benefits should encompass statutory requirements such as social security, meals, transportation allowances, and paid time off. Fringe benefits like performance bonuses, health coverage extensions, and training allowances can enhance competitiveness. Additionally, compliance with Mexican labor laws requires that all employment contracts adhere to local standards regarding wages, working hours, and termination clauses (Schumacher & Walker, 2018).

United Kingdom: Managers in the UK earn approximately £30,000 to £45,000 per year ($40,000 to $59,000 USD), with benefits mandated by employment law, including generous paid leave, pension contributions, and health coverage (Office for National Statistics, 2023). Fringe benefits such as performance-based bonuses, transportation allowances, and professional development support can be incorporated. Ensuring compliance with UK employment law—such as the Employee Rights Act—is critical, especially regarding minimum wage, working hours, and redundancy provisions (Brewster et al., 2016).

In both cases, salary packages should be competitive relative to local standards, augmented with benefits that reflect the company's emphasis on employee retention and motivation. The compensation structures should also include clauses aligned with local tax laws and employment regulations to mitigate legal risks.

Outline for a Training Plan

The training program for new host-country managers should lay the foundation for operational, cultural, and brand-specific knowledge. A comprehensive plan can be outlined as follows:

• Introduction to Fish to Go: Overview of the company’s history, mission, values, and unique selling propositions.
• Operational Procedures: Detailed training on daily restaurant operations, food preparation standards, customer service protocols, and safety procedures.
• Brand Standards & Quality Control: Emphasis on maintaining product quality, hygiene standards, and presentation consistent with US standards but adaptable to local preferences.
• Staff Management and HR Policies: Training on hiring practices, conflict resolution, performance management, and legal compliance relating to employment law.
• Financial Management: Understanding profit margins, cost control measures, inventory management, and sales reporting.
• Cultural and Consumer Insights: Education on local cultural norms, consumer behaviors, and marketing strategies tailored to each country.
• Technology and Systems: Familiarization with POS systems, ordering platforms, and internal communication tools.
• Ongoing Support and Development: Establishment of mentorship, periodic refresher courses, and feedback mechanisms to adapt training as needed.

Assuming a new manager has foundational business skills, this training should span approximately four to six weeks, with opportunities for practical, on-the-job learning and assessments. Incorporating e-learning modules, classroom sessions, and hands-on experience can further enhance learning outcomes. This structured approach aims to develop capable managers who are aligned with the company's standards and can adapt them to local contexts effectively.

Conclusion

Expanding Fish to Go into Mexico and the UK through a host-country national staffing strategy offers considerable benefits in cultural adaptation, cost efficiency, and operational effectiveness. Recognizing the potential drawbacks, such as cultural misalignment and legal complexities, is vital for mitigating risks. Tailored compensation packages that reflect local norms and legal requirements are crucial for attracting top talent, while a comprehensive training program ensures managers are well-equipped to uphold the company’s standards. Implementing these strategies will position Fish to Go for successful international growth and sustained market presence.

References

• Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management. Routledge.
• Caligiuri, P., & Lazarova, M. (2001). A model for the influence of cultural values on adjustment and performance in international assignments. International Journal of Human Resource Management, 12(3), 357-371.
• Costigan, R. D., & Berman, A. (2008). Global issues in management. Management International Review, 48(4), 405-414.
• Dowling, P., & Welch, D. (2011). International human resource management: Managing people in a multinational context. Cengage Learning.
• Harzing, A.-W., & Pinnington, A. H. (2011). International human resource management. Sage.
• Härtel, C. E., & Ashkanasy, N. M. (2010). Cultural diversity in organizations. European Journal of International Management, 4(2), 145-155.
• OECD. (2022). Employment outlook: Mexico. OECD Publishing.
• Office for National Statistics. (2023). UK labour market overview. Office for National Statistics.
• Sghtreiber, T., & Walker, R. (2018). Managing employment and labor laws in Mexico. Legal Environment of Business, 245-267.
• Wood, G. T., & de Cieri, H. (2007). HRM in Australia and New Zealand. International Journal of Human Resource Management, 18(1), 38–55.