Foreign Expansions: Managing Human Resources in International Joint Ventures

Foreign Expansions 1
FOREIGN EXPANSIONS
By Students Name
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Professor’s name
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Date

Foreign Expansions 2
Table of Contents
1.0 Purpose.................................................................................................................................3
2.0 Scope....................................................................................................................................3
3.0 Policy Statement..................................................................................................................3
3.1 Recruitment and Selection...............................................................................................3
3.1.1 United Kingdom........................................................................................................4
3.2.2 Turkey.......................................................................................................................5
3.1.3 China.........................................................................................................................6
3.2 Pre-departure....................................................................................................................7
3.3 During Assignment..........................................................................................................8
4.0 Responsibility.....................................................................................................................10
6.0 Conclusion.........................................................................................................................12
7.0 References..........................................................................................................................13

Foreign Expansions 3
1.0 Purpose
With an increased level of competition among firms at both national and international level,
expatriate assignments play a critical role in MCNs. As a medium-sized Australian
accounting company with joint venture investments in the United Kingdom, Turkey, and
China, it is imperative for us to develop a policy of how to manage human resources.
Especially with involvements in different parts of the world, which is intimately linked to the
organisation’s global strategic business objectives.
2.0 Scope
This policy provides procedures and guidelines based on leading practices and cover
selection, pre-departure, during assignment and post assignment issues. The procedures and
guidelines will be applied exclusively to all the staff members with the expatriate status in the
UK, Turkey, and China.
3.0 Policy Statement
3.1 Recruitment and Selection
A recruitment policy ensures an unbiased selection and a recruitment procedure that results in
the appointment of the best fit for the job, based on merit, and in line with the organisation's
core values and objectives (Stone, 2013). In order for us to balance the cultural aspect of our
policies, we rely on Hofstede’s dimensions of culture, which can help in understanding how a
country’s culture could affect business. According to Hofstede, there are six dimensions of
national culture; power distance, individualism versus collectivism, masculinity versus
femininity, uncertainty avoidance, long-term vs short term orientation and indulgence vs
restraint which are defined in section five (Minkov, et al.,2018) In this light, our company
adheres to all the above recruitment practices and strategies when employing expatriates in
UK, Turkey and China.

Foreign Expansions 4
3.1.1 United Kingdom
We choose the expatriates only from our parent country to work in the host nations by using
the ethnocentric approach. We believe that the individuals we select will not only represent
the interest and values we embody but also help the business to link up well with its global
partners.
We use ethnocentric approach because UK’s cultural dimension is very similar to that of
Australia, where there is high individualism, low uncertainty avoidance, low power distance
and high indulgence (Vance & Pail, 2015). Since the official language in the UK is English as
well, there will be less foreign adjustment problems for the employees. It will be easier,
therefore, to implement our core values and manage staff in the UK. The recruitment process
involves four distinct stages; self-selection, creation of candidate pool, assessment of
technical skills, and then making of a mutual decision (Stone, 2013). After which we consider
the cultural aspects of the candidates.
The UK has a low score of power distance, meaning this society encourages equality and
fairness (Anon, 2019). We, therefore, have to provide opportunities to employees by letting
them participate in the process of job creation by giving descriptions of the new jobs to
ensure the information is shared (Aguinis, Joo & Gottfredson, 2012). From the research, the
UK is amongst the highest in individualist scores; members believe they are independent of
the organisation (Rothwell, Burford & Illing, 2013). This means that our hiring and
promotion decisions in the UK should be based on personal skills and abilities only.
On the other hand, Australia is a masculine society meaning the dominant values include the
importance of showing off and making money (An & Kim, 2007). In masculine societies,
career ambitions are optional for women, meaning there is a lower percentage of women in
the workforce, which exerts pressure on equity, competition, and performance (An & Kim,