7/28/2019 Speech For global HRM

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Hello, in my part I would like to talk about some implications of society and system

effects. As we all know islam is the dominant religion in most of the middle east and

so in Egypt, so while setting up a subsidiary in Egypt islam have to taken care very

seriously as Islam shapes the culture and society of people since their childhood. And

islam religious effects have significant influence on the whole society of Egypt

including social and individual behavior, view of values and morality, ways of 

thinking, as well as HR management in workplace. Egyptian have positive impacts

from Islamic Work Ethic on work which could have space for HR manager to further

improve there work performance. , the HR practice in Egyptian subsidiary should

adopt high-power distance control and management. The hierarchical structure in

concise principle of the organization could give a strongly direction to all employees.

Furthermore, with the motion of more working experience and higher position in the

organization, employees might form a long-term career plan, which is significant for

the long-term development and strategy making of the organization. On the

opposite, the equality with inclusiveness should pay great attention to in the HR

management in Egyptian subsidiary, as the Prophet stated that no race is superior toother races, and the colour of skin does not have influence on the people. Therefore

the employees in Egyptian subsidiary should be treated as righteously without

discrimination of background, race and gender. Islamic countries like Egypt think

collectivism of an organization is vital and more important than the contribution of 

individual feature's roles to the organization. As due to poor education in Egypt to

get more educated workforce recruitment of people can be done straight from the

colleges by the way of campus recruitment. Which will create a positive impact as

young unemployment can also be reduced. 

Now we move on to the system effects HR implications. 

When planning on setting up a subsidiary in Egypt one has to take into account theindustry it wants to enter and their competitors. For example, building a new hotel

in the already established hotel business would prove to be difficult as big chain

hotels are already set up there and have the support of big groups behind them

(Baghda group). However if setting up a subsidiary by building a factory, the

competition won’t be as big and HR practises can be implied better. Taking into

account the new labour laws, the international firm needs to be careful not to cross

the thin line of what is internationally accepted and what is not. Rules and

regulations cannot be implied only because it is legal in Egypt but not in the rest of 

the world. They have to pay the minimum wage, consider the minimum holiday

leave and support their workers in any health issues they could come across. Bybeing a multinational company, they will be in the spotlight of how they are treating

their workers and can receive bad press and reputation which can affect their

worldwide business. They cannot comply with the new labour laws in Egypt as they

have been criticised by the International Labor Organization (Egypt independent).

The new labour laws stated a too low minimum wage and a too high maximum wage

and in addition to that limit the workers choice to freely organise themselves in

unions. By providing and supporting a trade union within the new subsidiary in

which the workers can organise themselves and work with other firms’ trade unions

together to gain a bigger voice, this can be solved and workers will be willing to work

for the company.

7/28/2019 Speech For global HRM

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