The kfc case study. human resouce problem in china

Topics: Management, China, Chinese language Pages: 28 (9784 words) Published: May 2, 2008
Thanks to cultural differences and Social Background influences, KFC in China faces challenges: it needs to establish a new management style.

The KFC must develop the new management style to match up Chinese habit. For example accept the commission in China is the normal phenomenon but in the West was not. The KFC must to understand the different habitual behavior in China and try to adapt it. The different management style will make a lot of conflict. Some times will make the company lost the market or suffer a setback. For example Taiwan's company was suffering a setback in China. It was a famous department store in Taiwan. It was as a leader in the department store in Taiwan. But they have a defeat in China. They lost their stock their fund in China. Their cooperation partner was absorbing their stock. The Taiwan's company was lost their managerial authority and back to Taiwan. So the KFC might be caution in China. Although Taiwan and China have some background was the same but they still get failure in China market.

b. KFC in China would demand a huge amount of scarce managerial resources. Tony needs some management managers who can speak English and Chinese. They might be selected from Singapore or Hong Kong. Many doubts were lingering in Tony Wang's mind and he wondered if the venture should adopt a slower approach. His first concern lay with challenges in imposing Western management practices on the employees. The need supervise employees placed a particular strain in local management. Most of this team had been imported on term assignment from Singapore or Hong Kong. For these managers, Beijing was regarded as somewhat of a hardship post; most were eager to leave at the earliest possible time. A serious challenge facing Tony Wang was in replacing these managers with competent and motivated KFC managers who spoke Mandarin Chinese and preferably some English. Even in Singapore and Hong Kong these people were hard to find.

c. Problems with employees and partners. The need to supervise employees placed a particular strain on local management. Personnel problems were also having an effect on the relationship among the partners. These problems often stemmed from Chinese partners' resentment of the imposition. Working for a foreign joint venture was an attractive opportunity for many Chinese, because foreign partners often paid considerably above local wage levels. In Beijing, for example , it had been reported the reported the English-speaking doormen at the joint-venture Sheraton Great Wall Hotel could earn up to three times as mush as the top brain surgeon in the country. At KFC, the base salary promised to applicants was set at RMB 140 per month. This level was about 40 per cent more than could be received at typical industrial facilities and up to 10 per cent more than the remuneration received by associate professors at the country's universities.

Strategic ImportanceIt is important to note that the human resource program was a trail program and constant changes by the state were being made to it. To Tony Wang, vice president for KFC for Southeast Asia and China, the HR program offered a great opportunity. However, there are also a lot of changes that Tony Wang must make to his managerial style once all his business is signed with the government. Numerous external and internal environmental factors appear that Tony Wang as vice president must deal with. Internal factors that influence the work place include the need for a change in the mindset of the employees. All employees must now think about how they can contribute to the KFC so that it becomes profitable. In the work force problem, one factor that influences the work force is low morale. As much as they look forward to changes in the workplace they continue to have problems in their daily lives. Many of the employees lack a proper place to bathe, proper transportation to and from work and do not have adequate lunches at work. Furthermore, they are...

References: . SEFTB. (n.d.). Retrieved April 1, 2008, Fromhttp://www.seftb.org/mhypage.exe?HYPAGE=/06/06_2/06_2_content.asp&id3=102 pp 32. The Epoch Times. (n.d.). Retrieved April 1, 2008, Fromhttp://hk.epochtimes.com/7/9/13/51523.htm pp33. The Epoch Times. (n.d.). Retrieved April 1, 2008, Fromhttp://tw.epochtimes.com/bt/7/9/2/n1821007.htm pp34. KFC and McDonald 's - a model of blended culture. (June 1, 2004). China Daily.
Retrieved March 31, 2008, fromhttp://www.chinadaily.com.cn/english/doc/2004-06/01/content_335488.htm5. Power of Yum!-2004 Annual Customer Mania Report. (2004). Retrieved April 1, 2008, from http://www.yum.com/investors/annualreport/04annualreport/pdf/yum_annualreport04.pdf6. Robert L. Mathis and John H. Jackson. (2006). Human Resource Management. Thomson South-Western, 11th Edition.
7. KFC 's Localization Strategies in China. (April 30, 2004) Retrieved April 1, 2008, from http://lidan.net/blog/2004/04/kfcs_localization_strategies_in_china.html
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