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While decrying the paucity of empirical evidence regarding the HRM demands of the contractual modes of operation, the authors suggest that HRM concerns affects, and may even govern, the choice of market entry mode. They use the entry of the U.S. hamburger chain, McDonald's, into Russia to illustrate the interconnection between mode of entry and IHRM. Expatriates were involved in assisting with the selection and training of local staff-each crew member received the standard Mc Donald's training (60 hours of training per crew member). Russians selected for managerial positions were sent to McDonald's Institute of Hamburgerology in Toronto, canada, and to the Hamburger University in Oakbrook, illinois, in the United States. When the first restaurant opened, they had a staff 630 employees. management contracts are also used as a way of operating in foreign markets. They involve a management role in the foreign company for a specified period of time and fee, and therefore require the posting of staff for extended periods of time. Walt Disney is an example of a firm that utilizes this mode of operation; the establishment of Euro-disney (France) combined 49 percent equity with a management fee of 3 percent of gross revenue Management contacts are also used in the hotel and airline industries.By its very nature, this form of contractual mode means that skilled, usually talented staff will be needed. Knowledge transfer is an Important component involving the training of HCN staff. However, there is little treatment of the HR demands of a successful management contract in the IHRM literature. In one of the few international business texts that covers this contractual mode of operation, the authors comment: The overall success of the contract operation, including the training aspect, depends on the quality of staff transferred or appointed to the contract venture, and therefore overall International human resource management by the company. Because management contracts are normally not a mainstream operational method when used they will often receive secondary consideration in staffing requirements. For this reason companies tend not to be keen to commit large numbers of equity staff to contract operations. Likewise the client organization prefers not to have large numbers of expatriate staff as it makes eventual replacement more difficult. Thus, for both sides there is an incentive to keep down foreign staff numbers.
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