International Human Resource Studies

International HRM
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Executive Summary
Grow-to-munch, a company specializing in making wooden gardening trays, seeks to expand in a new country to enhance productivity. The research findings showed that Germany would be a feasible location for various detailed reasons.
The research began by introducing the topic, focusing on the importance of expansion. Further, it explored Germany's political climate and concluded that the country was socially and politically stable. Additionally, an examination into the economy revealed that Germany's informal sector constitutes self-employed, marginal, part-time, temporary workers, flea market vendors, and other unregistered employment sources.
The paper also analyzed employment and immigration policies revealing that the country accommodates immigrant workers. Also, Germany's employment policies significantly protect employee's welfare. The country also abides by the conventions of the ILO regarding equality, which is evidenced by the several policies established to ensure all employees are renumerated and treated equitably. Finally, the research proposed that if the firm expands to Germany, it should consider hiring local talent to cut costs, enhance efficiency and guarantee customer satisfaction. The paper concludes by offering a brief cost-benefit analysis of the benefits of expanding to Germany from an employment perspective.
Introduction
Grow-to-munch, which is based in the United Kingdom, is aspiring to expand its business abroad. This report will include an extensive overview of the international market, mainly focusing on Germany. The country, which is among the largest in Europe, is undoubtedly one of the best-performing countries in economic stability, technological development, medicine, innovation, and business. Therefore, it is arguably an inviting destination for the company, and through a comprehensive analysis, it might be a feasible country to venture to. The paper will analyze the political environment and stability while also exploring the informal economic sectors in Germany. It will also examine the government's policies regarding employment and immigration and Germany's adherence to ILO guidelines. Further, it is vital to understand the immediate environment and decide where the company may source its labor needs.
The political party in government and the extent to which there is social stability in the host country
Germany's politics are founded on a federal democratic republic with a parliamentary system. The citizens chose the administration in elections where every citizen has an equal say on how the government will be run. The Federal President of Germany is the country's leader. Because the Federal Chancellor controls the government and everyday affairs under Germany's legislative body, the Federal President's function is primarily decorative. Nevertheless, the president symbolizes the state, vitality, validity, and cohesiveness via its conduct and public interactions (Research Office Legislative Council Secretariat, 2015). The German parliament elects the Chancellor and oversees their activities. Further, Germany's ministers, who the Chancellor subsequently selects, form the remaining part of the country's cabinet.
The country has had long-lasting stability, both political and social. Arguably, there has always been debate on the social stability of Germany because it was once in the spotlight for the mass genocide against Jews and other immigrants. Therefore, it would suffice to say that the country's past is disappointing. However, with recent advancements, political agreements, and consensus between conflicting parties, the country has emerged to be among the most stable countries in the world. The only major political concern is the upcoming end of the current Chancellor's term (Ellyatt, 2019). After a sixteen-year tenure, the German top authority figure is about to step down. The opposing political parties are actively engaged in political stand-offs, with each team hoping to get a shot at the country's top seat.
Nonetheless, the country's stability is among the best, and according to many, Germany is ranked among the top ten stable nations. As seen in the chart below, the country was rated 0.58 on the stability scale in 2019. However, there are some noticeable social issues in Germany, including the commonly accepted prejudice by uninformed people regarding the Germans, their relationships with foreigners, and social interaction.
The figure shows the trends in Germany's political stability over time.
Source: the global economy (2021)
The levels of the informal economy and the main sectors where there is informal sector work
Ideally, this is also an important attribute to consider before choosing a destination country, more so because the goal of each company is to venture into a market where it can experience economic growth and stability. Undoubtedly, this is a major concern, particularly on economic sectors, how each sector is stratified and how they perform. Grow-to-munch is a company majoring in the agricultural manufacturing sector. It manufactures wooden casings in which people can grow different types of plants. Therefore, before venturing into an external market, it is vital to analyze how the economic sectors are, the different available levels, their productivity, and possible entry barriers. The informal economy constitutes private firms and self-employed people not regulated by the government labor policies (Korner, 2008). The ILO reports that Germany's informal sector constitutes about 10.2% of total employment in the country. In most cases, the informal economy contributes greatly to the GDP and often forms a significant level of competition. Grow-to-munch is in the formal economy because the company has a formalized, legal, and recognized structure and is regulated by government policies.
The main levels of informal economy in Germany include fixed-term employees, part-time, marginal, and temporary employees. Further, the informal German economy is also comprised of self-employed individuals. Arguably, there is a significant division in explaining what constitutes an informal sector economy. Still, contemporary research generally defines it as all economic activities that are not taxed, contribute to the GDP, and are not restricted by government policies (Belev, 2003.) In that respect, it is evident that some illegal activities might fit into the description of an informal economy (Unni and Rani, 2003). Nonetheless, the research will focus on informal legal activities that may offer similar products as Grow-to-munch. Thus, the informal German economy consists of food vending, manual laborers, cleaners, and other unregistered employees working on minimum wage.
Employment Legislation and Government Policy Relating to Immigration
First, the most important legal document about the employment relationship is the employment contract. Although the jurisprudence does not necessitate a written employment agreement, the country's policies propose that a worker must, at the bare minimum, be supplied with a clear overview of the components of the contractual relationship within a couple of days after the start of the contract (Ebbinghaus and Eichhorst, 2006). On the other hand, the temporary contract for employment should be written and signed before legally binding. Additionally, such contracts are only legal if objective considerations support the tenure. Also, German labor legislation provides weekdays working weeks and a total peak of eight hours each day. According to the German Labor Code, if the work schedule in half a year does not transcend eight hours daily, the work time may be increased to about ten hours per day. The several policies typically restrict work to weekdays; people are not allowed to work on Sundays and national holidays. If an employee decided to work during Sundays or holidays, they have to seek permission from the appropriate authorities.  
Further, employees in Germany are entitled to a minimum vacation time equal to one month's worth of working days. In reality, though, the leave period is typically lengthier, often lasting to more than a month. Workers in all industries are presently entitled to a prescribed wage of about 9 Euros per hour (Mabbett, 2016). The workers are also entitled to receive their full pay for an absence of up to six weeks in the event of an illness (ILO, 2021). If an employee is absent from work for more than forty days, an insurance company will reimburse the employee for the gross amount of their income. Employees are also protected by stringent regulations when it ...