Table of Contents INTRODUCTION...........................................................................................................................1 LITERATURE REVIEW...............................................................................................................1 CONCLUSION................................................................................................................................7 REFERENCE..................................................................................................................................8
INTRODUCTION Organisational success is depend upon the Human Resource or if any business wanted to growintheinternationalmarketthenmultinationalcompanyhavetobedependedon international human resource management. Managers of the company have responsibility to manage wide range of employees1. HR is the person who is responsible for the whole task, additional specification of operations of their department. Manager or HR team are those persons who responsible for the international human resource management. This research focus on Sustainable Expatriation Management, how MNEs develop this and the crucial impact for their internationalization. International human resource management help the individual to live in another country as a citizenship and they also have relinquished citizenship in their home country too. LITERATURE REVIEW Explain Sustainable Expatriation Management according to their point of view In the global market, competition will increase rapidly and for this concern most of the organisation transfer their employees to another countries. So they can carry their technical ability, knowledge and skills in the job of subsidiary company which is in abroad. These people called Expatriate and for the selection of these people HR department required to follow the process. So HR manager have to develop plan for the selection or training of an employee. At the time of performing their duty HR team face the lots of issues and influence the success of MNEs. Globalisation is more popular in the current market trend and it is not limited in single location theyexplorenewlocationwiththenewbusiness.Organisationexpandtheiroperational functions which increase the competitiveness in the global market. Now MNEs consider the human resource management for the competitive advantage2. So mangers often engage with the internal employees and send them in their subsidiaries for the achievement of business goals & objectives. 1Albrecht, Simon L., Arnold B. Bakker, Jamie A. Gruman, William H. Macey, and Alan M. Saks. "Employee engagement, human resource management practices and competitive advantage: An integrated approach."Journal of Organizational Effectiveness: People and Performance2, no. 1 (2015): 7-35. 2Awais Bhatti, Muhammad, Mohamed Mohamed Battour, and Ahmed Rageh Ismail. "Expatriates adjustment and job performance: an examination of individual and organizational factors."International Journal of Productivity and Performance Management62, no. 7 (2013): 694-717. 1
According toAdler and Ghadar (2019), expatriates plays important role in the each stage of internationalization. They have responsibility to connect their host company with the subsidiaries and it will depend upon the global strategy of the business. Organisation face the lots of issues regarding policies and practices. Such as staffing policy, it include the selection and training process of employees of the parent company is the biggest issue in HRM. So expatriate management is the concern in the International Human Resources Management (IHRM) which influence the success of multinational enterprises. MNEs focus on HRM sustainability for the sustainingininternationalbusinessoperations.Itwilldescribetheorganisationalability, achievement, goals, economic value integrating social or environmental opportunities in the trading strategies for the long term. Some time transfer of employees in the abroad fail because they are not so flexible or adaptable in the international life3. Expatriate face the issues or variation because of the new location, different culture and language conflict. In addition, there are various barriers regarding poor communication, lack or awareness, poor interpretation skills and have less ability to evaluate. Because of that issues and barriers expatriate return in their home country earlier. So due to this reason it will become the top concern area for the international HR manager. As perHofstede(2019),studies, cultural diversity is the biggest issues so HR manager will try to understand and maintain the cultural diversity for their employees. It include the working style with the new people, by using technology, work in the different location which will provide the cultural knowledge and different background. For example: - if any organisation hire a new employee from Germany, so that employee have different ideas or culture knowledge which helpto manager employees by using various technology on their personal experience. Best way to make successful expatriate is to freely accept the new style, culture, communication, technology and other skills. Some case candidate's family requirement also become a reason for the failure of expatriate4. This factor heavily influence the international assignment because it will become a barrier for the IHRM. Organisation have to build strategies in respect of identifying household role with the expatriate. Because they are those person who motivate employees to perform well in the new location. 3Cerdin, Jean-Luc. "Motivation of self-initiated expatriates." InSelf-initiated expatriation, pp. 73-88. Routledge, 2012. 4Chelladurai, Packianathan, and Shannon Kerwin.Human resource management in sport and recreation. Human Kinetics, 2018. 2
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Schein's (2019),state that culture have 3 level which include artefacts, values or underlying assumption. These cultural context impact the HRM practices such as recruitment & selection, training & development, compensation and task distribution. Recruitment & selection impact the society through in group collectivism and individual achievement help the HR manager to compare selection criteria. Gender egalitarianism is high in Training & development because woman get the same change to enhance their career ans same as gender egalitarianism is low in case of female manager. High uncertainty avoidance in case of compensation because employees prefer fixed benefits rather taking any risk for the more benefits. Some of the employees take high risk due to earn more income and it is applicable on performance base work. High on collectivism motivate the team work at the time or distributing task or work. High on individualism will benefit for the responsible work system5. HR of the organisation provide various professional training & development program for the employees. It will provide on the job training which enhance the skill of employees which is beneficial for the organisation to expand their business globally. HR manager offer different language classes which help the employeestoattendmeetings,globalseminarsandconferences.Thesetrainingprovide professional development to their employees make them capable and provide skills in global marketing, finance trend or international business development. Process of developing Sustainable Expatriation Management by MNEs Internation organisation have to adopt different concepts and knowledge in the range of human resource functions such as recruitment & selection, training & development etc. In the organisation, pre-departure training is the initial concern for the employees and ensure that they will perform effectively and become successful after selecting candidate6. Expatriate required regular training due to lack of suitable trained staff in the new or host location. Main purpose or aim of the organisation is to improve current working skills and behaviour. It will help the expatriate to adjust in on-assignment performance. Cross cultural training help the employees to increase cross-cultural life, develop ability to adopt different culture and build global mindset. Organisation providethe varioustrainingprogramssuchascultural awareness,language knowledge, primary visit and regular practices matter a lot. Because international assignment is 5Chen, Lung-chu.An introduction to contemporary international law: a policy-oriented perspective. Oxford University Press, 2014. 6Haslberger, Arno, Chris Brewster, and Thomas Hippler. "The dimensions of expatriate adjustment."Human Resource Management52, no. 3 (2013): 333-351. 3
more complex in comparison to domestic task due to this reason employees are not comfortable or isolated to work on new location. According tokluckhohn kroeber ()develop intellectual or moral faculties for the trainingand it will help the employees to improve their professional personality. Limited knowledge of other country will create difficulty in the abroad assignment. Cultural awareness program is important as well as necessary for the selected candidates so they behave according to the host culture and follow their models. Advantage of this training is to improve skill set for the foreign assignment and it also improve the performance which will help to connect with local people and make them able to take effective or correct decision7. Multinational enterprises (MNEs) provide proper learning models which help the expatriate to become aware about the host country. It's culture, values, ethics, technology or behaviour of an individual. Because of that reason it is important for the selected candidate to preliminary visit the host location and is useful at the time of orientation of international employees. Prior visit will help the employee to understand themarket trends and it will support the knowledge due to pre-departure training. Visit of the host nation will increase the confidence of expatriate to become familiar with the host countries culture, new life & education. MNEs provide the prior visit to expatriate or it's spouse so they can mutually decide that they have to accept that international assignment. Training & development program connect the employee with host country's culture and make them aware about their lifestyle or communities and it will positively affect the expatriate. These training & development influence the employee and make them to adjust in the new location. Language training also beneficial for the employee as well as for organisation to make them comfortable & confidante in the new country8. Every country represent their culture through their language if the expatriate is aware about local language of host country then it will increase the potential and decrease the chances of confusion or mistake.So basically current MNEs provide the differenttraining & development program to selected candidates. Majorly cultural awareness, language knowledge or prior visit with spouse will help to make this program successful. But most of the time lack of language knowledge will become a barrier for the multinational organisation. Because of that issue HRM need to select suitable candidate who 7Hollifield, James, Philip L. Martin, and Pia Orrenius, eds.Controlling immigration: A global perspective. Stanford University Press, 2014. 8Koveshnikov, Alexei, Heidi Wechtler, and Cecile Dejoux. "Cross-cultural adjustment of expatriates: The role of emotional intelligence and gender."Journal of World Business49, no. 3 (2014): 362-371. 4
know the English language. Because it is the most common language which it is most popular and primary used languagein the various countries. For example Germany, Britain, USA, Canada, UK etc. these are some popular countries who have English as their local language. So it is important for the HR manager to choose those candidate who is professionally know the English language. In some counties language skills are not so much important for the expatriate but have knowledge about foreign language is beneficial for the employee or for the organisation. Which will help the expatriate to perform their task with the full of their potential. According to some researcher, one of the biggest issue in IHRM is incapable support of human resource. Such as negative attitude toward host country9. So it is important for the HRM to provide proper support to their expatriate in the initial days because that time employees are unfamiliar with the culture, location, idea or job. At that time expatriate required some important advice or information from the HR team of their organisation. Now most of the MNEs will take suggestion or advise from the experts for the valuable contribution which is further beneficial for the business and help them to achieve their goals & objectives. Reasons of Sustainable Expatriation Management important for the internationalization Sustainable Expatriation Management is the important for the organisation because expatriate work hard for the business regarding their short or long term project. It will help the company to expand their operational functions in the new location. For this organisation need to hire professional persons who can develop the skills of selected candidates and make them capableor develop abilityto successin globalmarket.Therearesomeof reasonwhy multinational enterprises send their expatriate in the other country. Send their employees in the host country will increase the knowledge of local market and it will help the organisation to expand their business and identify the taste & preference of consumers10. It will also helps in identify market condition, culture and apply the business practices for the effective results. Understanding of local market & awareness will reduce the risk and help them to avoid various mistake at the time of performing their duty because if it is not happen properly then it will 9Koveshnikov, Alexei, Heidi Wechtler, and Cecile Dejoux. "Cross-cultural adjustment of expatriates: The role of emotional intelligence and gender."Journal of World Business49, no. 3 (2014): 362-371. 10Nankervis, Alan R., Marian Baird, Jane Coffey, and John Shields.Human resource management: strategy and practice. Cengage AU, 2016. 5
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reduce the chances success in the market. Another reason is Instill company culturewhich means gradually fix the different idea, feeling, culture or principle in the employee who send to an another location. Expatriate are those who work closely with the subsidiaries company, distribution, joint partners and agents. They will ensure that expatriate will understand the working culture, values and standards11. Multinational enterprises provide development programs so expatriate can understand the different culture and those factors which work with the local businesspractices.Throughinstillingparentorganisationalcultureorpracticesselected candidate will ensure that customer get the high standard services in the whole export region. Another reason is that expatriate transfer the information to their overseas partner and their parent company. If any organisation set a manufacturing unit then expatriate provide the different practices, standards regarding product quality and use of different techniques in the production. Expatriate also provide the information regarding such as use of new technology will help the organisation to make them survive and able to achieve their business goals & objectives. It happen because expatriate work with the local distributors or agents which provide the market knowledge and help the company to develop market program which improve market penetration strategies. In addition, internationalisation will help to develop management talent through enhance their relevant skills & ability12. Expatriate learn the different organisational culture so they recognize and understand the diversification of local market in the various territories. It will provide the broad perspective of marketing which further helps in building marketing strategies for the completion of their task and achieve their goals & objectives. Expatriate develop the employees personal skills such as interpersonal, leadership, intellectual or collaboration with the other team mates. It will also improve the management quality of employee through expatriate which help the business to enhance their skills for the success in the global market. Role of expatriate will change because before that it was an normal employee for the organisation but after transferring to another country it will become a important part of the organisation. Expatriate provide their important contribution to the business with the help of developing marketing export and role of expatriate also changed. With the help of international industrial relation multinational enterprises identify the local talent which fulfil the need of 11Nankervis, Alan R., Marian Baird, Jane Coffey, and John Shields.Human resource management: strategy and practice. Cengage AU, 2016. 12Takeuchi, Riki, and Jieying Chen. "The impact of international experiences for expatriates’ cross-cultural adjustment: A theoretical review and a critique."Organizational Psychology Review3, no. 3 (2013): 248-290. 6
individual market. MNEs try to develop local people who will take responsibilities rather than sending more expatriate to run local operational functions13. HR functions help the business to train their expatriate and they also ensure that program will not fail because of the some issues. MNEs follow the various strategies which help the organisation as well as expatriate to perform their task well and make them able to achieve success in the global market. By adopting international industrial relations strategies such as various practices which satisfy their unisons demands and deal with the employee through employer associate not at firm level. CONCLUSION From the above discussion, it has been concluded that every organisation required effective human resource management because it will help the company to expand their business globally. With the help of HR functions MNEs provide proper training & development program to their selected candidate who going to send in host location to identify local market condition and the opportunities. Expatriate is the important part of the organisation because it will provide the information which help the company to perform globally. In addition, HRM play important role through providing various development program and different training regarding required skill set. 13Yao, C., 2014. The impact of cultural dimensions on Chinese expatriates' career capital.The International Journal of Human Resource Management,25(5), pp.609-630. 7