Global Staffing Strategies

Global Staffing Strategies

Michael Jones the Director of Human Resources for Just Brew Coffee explains the company’s global staffing strategies in China. Just Brew followed closely on the back of companies like Nestle and Microsoft of transplanting their striving business in the growing china economic environment. I will discuss the types of industry. What HR challenges Just Brew will be facing. The recruitment and selection practices best suit Just Brew in China. Explanation of how Just Brew will audit the results and findings on a regular basis.

Type of Industry

Just Brew is in the Food and Beverage industry and with the success of the coffee business in the United States and market in China looks promising. The food and beverage industry is a multibillion dollar industry in the US as reported at the US Census Bureau. In China the industry has grown steadily each year. The food and beverage industry economic sales in China for the past 4 years was 2006 $279,939 million, 2005 $247616, 2004 $226435, 2003 $214580. The numbers were reported in US dollars. China is one of the largest consumers of food, tobacco and beverages in the world. China is also considered one of the world’s largest producers as well. The country of China beverage sales are recorded as Soft drinks is number one with Alcohol running a close second. The volume of sales is reported in liters 38,398 for soft drinks and 25,353 in alcohol consumption. The drinking of tea is third with the consumption in 2007 of .51 kg per head. The consumption of coffee is 2007 has been the same percentage for the past 5 years of .04 kg per head. The growing economics of the people of china and the sophistication of its market size the urban community is spending larger portions of income on processed and packaged goods. The importing of foods and drinks from markets and dining in restaurants has increased in towns and cities.

Tea is still the most consumed hot drinks and refrigerated tea drinks are growing in popularity. Other forms of beverages are increasing in the urban areas like dairy products and canned fruit juices. Indicators show that coffee is set to grow rapidly when the economy opens ups. With the growth of income in china and the population in urban china expansion in china was inevifitable. Just Brew has bought out China partner Beijing Mei Da Coffee to get control of 60% of its retail shops in cities like Beijing and the port cities of Tianjin. Just Brew has grown from 19 to 190 stores since 1990. “It was very important to be established in the region two years prior to 2008 Beijing Olympics.” (Chang, 2006)

HR Challenges

Just Brew challenges were the difference culture and expectations of their employees. Just Brew knew the difference in Western and Chinese working cultures, which could cause tension and misunderstandings. Mistrust and lack of cohesion of both cultures can create an unhealthy workplace. With the help of Beijing Mei Da Coffee as partner the cultural differences were still a big factor. Rude employees in service industry were the norm in china. In China employees did not get recognition for individual efforts and good work was not rewarded. Employment and benefits was guaranteed by the state owned companies called “iron rice bowl,” the emergence of market driven industries have brought changes to the employment practices. Focus is now on staff training, evaluation and employee retention. These changes were made in both state owned and private owned companies. Colleges are educating Chinese citizens and in 2003, 3.8 million new students were admitted but that is a small fraction of the 1.3 billion of the population. Just Brew will be promoting the use of The Expectancy or (VIE) theory to increase the attendance of its employees. This theory consists of three key points, Expectancy, Instrumentality and Valence, where behaviors are targeted. “Definitions of the Expectancy Theory are:

1. The expectancy, or the likelihood that the employee can perform the behavior.

2. The instrumentality for (or strength of the linkage of the behavior with) a number of outcomes.

3. The valence, or attractiveness (positive or negative) of those outcomes.”

(Dreher & Dougherty, 2001, pg 36/Chapter)

Just Brews goals are to create a work environment where employees are in a positive environment to motivate positive behaviors.

To get the qualified employees Just Brew will need to run the stores with a focus on three areas. 1. Developing talent through on the job training, the ability to learn step by step processes how to make drinks and run the operation. 2. The deploying of talent, developing new job descriptions where needed. 3. The connecting of employees that works in the different business areas of the company. New concepts need to be presented to Chinese employees, like work life balance and career advancement. Other concepts are needed 1. Developing or changing the company culture to suit the country the business in. Reinforcing shared values and ethical training to achieve outstanding client services. 2. Establishing quality standards through rigorous quality reviews and practice. Establish team building with diverse backgrounds and skill levels. 3. Empowerment of the employees, establish long-term goals and succession planning.

Just Brew’s China Challenges

Level of: Country Equal, less or more Country

Universalism United States > China

Communitarism United States < China

Neutral United States < China

Specific United States > China

Achievement United States = China

Source: The authors based on Gooderham, P.N., and Nordhaug, O.2002. p. 13-16

Table: Comparison of the USA and China cultures using Trompenaars’ dimensions.

“The Neutral dimension describes the extent of which feelings are openly expressed, a behavioral aspect rather than a value in itself. The Universalism value orientation, describing a preference for rules rather than trusting relationships, could be interpreted as part of Hofstede’s uncertainty avoidance dimension on the one side, and to some extent the collectivist/individualist dimension”. (Dahl, 2006) Table above