Expatriate Management & HR Best Practices

This assignment delves into various aspects of expatriate management and its intersection with human resource practices. It explores crucial considerations for selecting and training expatriates, focusing on their adjustment to new environments. The document also examines the impact of multinational companies' HR strategies during economic crises and highlights research findings on expatriate compensation and organizational culture. Key theories such as Maslow's Hierarchy of Needs and McGregor's Theory X/Y are discussed in the context of expatriate motivation and performance.

Running head: GLOBAL HUMAN CAPITAL
Global Human Capital
Name of the Student:
Name of the University:
Author’s Note:

1GLOBAL HUMAN CAPITAL
Executive Summary
Global human capital management is becoming quite important and essential for any company
that is growing internationally. One such company is Telequip which failed to manage its human
resource requirement and ultimately it lost a very important project. This report presented the
issues that led to the project failure by focusing more on business issues rather than human
resource issues. It has been found that compensation package, cultural barrier, poor training,
wrong expatriate selection, poor planning, undermined communication and fulfillment of basic
needs were the main issues for the poor performance of expatriates that led to project failure.
However, if Telequip would have ensured right candidate selection along with accurate training
procedure, then surely project would have been delivered within proposed deadline.

2GLOBAL HUMAN CAPITAL
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Overview of Issues....................................................................................................................3
3.0 Analysis of Issues with Theories...............................................................................................4
3.1 Basic Needs with Maslow Hierarchy.....................................................................................4
3.2 Performance Appraisal with Theory X and Theory Y...........................................................4
3.3 Work Condition Issues with Herzberg Two Factor Theory...................................................5
3.4 Cultural Barriers with Hofstede Model..................................................................................5
4.0 Identification of Problem and Relevant Solutions.....................................................................6
4.1 Compensation Package..........................................................................................................6
4.2 Accommodation and Food Arrangement...............................................................................6
4.3 Language and Cultural Barrier...............................................................................................7
4.4 Expatriate Selection...............................................................................................................7
4.5 Company Communication and Decision...............................................................................7
5.0 Prioritized Recommendation.....................................................................................................8
5.1 Expatriate Selection (Priority 1)............................................................................................8
5.2 Language and Cultural Barrier (Priority 2)............................................................................8
5.3 Accommodation and Food Arrangement (Priority 3)............................................................9
5.4 Compensation Package (Priority 4).......................................................................................9
5.5 Periodic Communication (Priority 5).....................................................................................9

3GLOBAL HUMAN CAPITAL
6.0 Summary..................................................................................................................................10
Reference List................................................................................................................................11

4GLOBAL HUMAN CAPITAL
1.0 Introduction
Exponentially growing international organizations explicitly depend on talent acquisition
and eventually assigning projects that will earn huge revenue after successful accomplishment.
In context to global human capital management, some of the most common issues are lack of
experience and training provision, budget constraints, cultural barriers and internationally
immobile candidates (Tung 2016). This report will present the major issues that has been
prominent in Andrew Robinson case study. The overview of issues will be presented and
analysis using theories will be discussed. Later, the solutions for problem will be discussed and
recommendations will be arranged in prioritized basis. This report will help in presenting the
global human capital issues along with suitable recommendations for similar future cases.
2.0 Overview of Issues
After analyzing the case, it has been understood that Telequip Australia never planned for
the ways to adhere with project deliverables. Such a project manager who was chosen had no
experience to work in dual-diverse countries. It is prominent that there was no effective bonding
between the group of expatriates and they never understood each other. While Andrew left no
stone unturned to accommodate in new culture, his manager always ignored from being social
with Taiwanese culture. There have been huge changes in per diem and Andrew’s wife set
unrealistic expectations for their married life, which would perhaps never have been possible for
a busy corporate expatriate. Andrew was extremely busy with project and hardly got time to rest,
which created work-life balance issues. On the other hand, the ease and comfort related to
accommodation was never satisfactory. Considering financial support, Telequip never recharged
in the form of prepaid and as a result, credit card balance would get exhausted within a very
short time period. Also, Australian climate was quite different from Taiwan and Telequip was

5GLOBAL HUMAN CAPITAL
extending project duration at every three months, due to which Andrew was never satisfied as he
was eager to meet his family. Finally, it can be said that both the companies did not have any
mutual understanding and there was no communication, which created distress among both the
entities leading to turning down the project.
3.0 Analysis of Issues with Theories
3.1 Basic Needs with Maslow Hierarchy
According to Cao et al. (2013), if the basic psychological needs as described in Maslow
Hierarchy theory is not fulfilled for an individual the surely management expectation will not be
fulfilled. On the other hand, Jerome (2013) highlighted that even if psychological needs are
justified partially, still fulfillment of safety related needs will be under uncertainty, which will
affect the performance motivation of an employee. This has been the same for Andrew, as
Telequip failed to arrange accommodation for him and eventually he had to face crisis related to
food, water, homeostasis and sleep. This also impacted his work-life balance and later raised
safety related issues such as impact on employment and financial support, safety and security
and safety for family.
3.2 Performance Appraisal with Theory X and Theory Y
According toMohamed, Haji and Nor (2013), Theory X management believes employees
are not intrinsically motivated and therefore reward and recognition should be placed for
increasing motivation. On the other hand, Lawter, Kopelman and Prottas (2015) pointed out that
Theory Y management believes employees to be internally motivated and therefore no
motivation is required. However, in the concerned case, it is nowhere found that the organization
has created any such goal setting or expectancy that might have raised the motivation among the
expatriate group. Therefore, lack of performance appraisal initiatives effected motivation to

6GLOBAL HUMAN CAPITAL
outperform.Eventually, it can be found that the organization had to turn down the project, which
resulted to huge financial loss. This also affected the brand reputation in the global market,
which ultimately impacted on business sustainability resulting to a business issue.
3.3 Work Condition Issues with Herzberg Two Factor Theory
According to Yusoff, Kian and Idris (2013), certain factors those are mentioned as
hygiene under Herzbery theory, such as job security, status, salary and fringe benefits does not
create any difference but its non-existence create dissatisfaction among employees. This has
been the same for Andrew because he did not receive any support form Telequip Australia and
moreover he was concerned with his employment status. Failure of the project would straightway
lead to termination, and resultant potential outcomes impacted his motivation leading to job
security related issues.Therefore, it can be said that the business issue was created as Telequip
failed to justify employee satisfaction, which resulted in more work-pressure and expatriates
failed to keep balance between personal relaxation and project objective.
3.4 Cultural Barriers with Hofstede Model
According to Bain, Kroonenberg and Kashima (2015), considering the Hofstede model,
the individualistic factor in Australia is of higher degree than in Taiwan and therefore Australian
expatriates fail to socialize themselves within short time in Taiwan. This has been the same for
Andrew as he was struggling hard to accommodate with the new culture. On the other hand, his
manager failed to socialize himself and therefore there was no mutualcoordination and
communication between the client company and Telequip. Lack of communication affects
project delivery and milestones accomplishment, which results in wastage of resources
(Klitmoller and Lauring 2013) and this has been the same for Telequip that resulted in failed
project.

7GLOBAL HUMAN CAPITAL
4.0 Identification of Problem and Relevant Solutions
4.1 Compensation Package
According to Jackson, Schuler and Jiang (2014), for an organization that is arranging
short-term assignments for international projects must always justify the candidate’s financial
arrangements, which must be included in international human resource project budget. On the
other hand, Collings (2014) pointed out that an employee must not be made liable to arrange own
expenses while being on a company’s project. However, in the case it can be found that Telequip
neither arranged any official credit card nor allocated any fund for expense. Even though
Telequip offered financial incentive, however Andrew had to face taxation issues. At the end
situation raised to such a condition that Telequip owed huge amount of capital to Andrew.
Therefore, it can be said that there was no planning of compensation package for the
expatriates.Telequip must have arranged official credit card and refill balance on weekly basis so
that concern related to finance could have been solved at the earliest.
4.2 Accommodation and Food Arrangement
Firth et al. (2014) pointed out that international projects involving expatriates must focus
on accommodation arrangements irrespective of project tenure. It becomes very hard for an
individual to search and arrange accommodation in a geographically new location. However,
Telequip failed to focus on accommodation arrangements for the project team. This resulted in
extreme mental dissatisfaction and physical comfort was impacted. Finally, work-life balance
was hampered that resulted in business issue. Telequip must have arranged guest house in
Taiwan with advance payment for the short-term assignment so that physical comfort could have
been restored.

8GLOBAL HUMAN CAPITAL
4.3 Language and Cultural Barrier
According to Cooke et al. (2014), accommodating into culturally diverse locations result
in most distress among employees. Factors such as language, society, community, belief and
traits are found to prevent oneself from being socialized. This has been the same for Andrew and
other members. Even through Andrew tried to cope up with these cultural differences but
Andrew Robinson, Jonathan Samuels, Malcolm Donaghue or other Telequip employees failed to
adjust themselves in new location. As a solution, Telequip must have provided training to each
individual after they had arrived from first short-term project deliverable.
4.4 Expatriate Selection
While considering the viewpoint of Gunnigle, Lavelle and Monaghan (2013), it can be
said that selection of best expatriate depends on human resource training, experience, ability of
acceptance, flexibility approach, understanding capability and fluid communication efficiency.
However, in the concerned case, it can be found that none of the employees were trained enough
and even they did not have any experience to work in geographically and culturally diverse
location. It has been evident that Malcon never tried to understand Taiwanese culture and
language and therefore communication issues were prominent, resulting to project issues.
Telequip must have selected expatriates from headquarter and adequate training must have been
provided to selected candidates.
4.5 Company Communication and Decision
Ko (2014) indicated that for any international project, supervisors must ensure fluid
communication among project team, headquarter and subsidiary so that information about
milestone achievement is acquired. However, in the case it can be found there was no
communication of Telequip managers with expatriates. Also, there was no mutual understanding

9GLOBAL HUMAN CAPITAL
among project team members and with client company. Decision regarding selection of project
delivery date and candidate ability was completely wrong that resulted in huge problem.
Telequip must have kept periodic communication and reports to analyze progress as a solution.
5.0 Prioritized Recommendation
5.1 Expatriate Selection (Priority 1)
Expatriate must be selected from among the most experienced candidates within age
group from 30 to 45 having excellent communication and crisis contingency management skills
(de Eccher and Duarte 2016). Telequip would not have consumed huge capital for candidate
selection, however internal candidate potentiality report would consume negligible fraction of
capital. Excel reports containinglegends such asjob attributes, skills, behavior, potentiality,
achievement and communication skill would determine the selection of expatriate (Feitosa et al.
2014). The entire selection process would not have more than AU$100, with AU$20 for each
candidate.
5.2 Language and Cultural Barrier (Priority 2)
Training Need Analysis (TNA) determines the requirement for promoting an experienced
candidate to expatriate for handling international projects (Varma and Russell 2016). Telequip
must have designed training for each of the five selected candidates. Language learning and
knowledge about cultural differences would be the most important training needs. Such training
must not have consumed more than AU$200 for each month, with AU$40 for each candidate.
Three months training course would have made the candidates to be the most suitable for
managing into culturally diverse society.

10GLOBAL HUMAN CAPITAL
5.3 Accommodation and Food Arrangement (Priority 3)
Once training is accomplished, accommodation arrangement in new location must be
ensured by the management including advance payment and signing contract for lease
(Burmeister, Lazarova and Deller 2016). Telequip must have arranged suitable accommodation
near to client office with direct to home food delivery option so that the basic needs of the
expatriates could have been fulfilled. Accommodation cost per candidate per month would have
been AU$300 and cost of food AU$150. This budget should have been included in short-term
assignment project.
5.4 Compensation Package (Priority 4)
Expense both direct and indirect should be arranged by management beforehand along
with credit card facility and taxation accountabilities (Nazir, Shah and Zaman 2014). Telequip
needed to arrange credit facilities through cards without expense limit and monthly credit refill.
This would therefore have helped candidates to formulate expense as expenditure beyond credit
limit would have been beard by candidate. This cost would have been the maximum such as
AU$1200 per expatriate each month. This budget must have included cost of food, lodge,
entertainment and travel.
5.5 Periodic Communication (Priority 5)
Mutual communication and coordination helps exchanging ideas and thoughts among
international project stakeholders (Darawong, Igel and Badir 2016). Telequip must have ensured
weekly communication with the project team members including video calling, excel reports,
personalized email and webmail. For communication cell-phone must have been allocated for
official purposes with adequate recharge. Communication would have cost AU$120 for data
exchange, voice and video call.

11GLOBAL HUMAN CAPITAL
6.0 Summary
While summing, it can be said that Telequip must have focused on five main areas such
as candidate selection, candidate training, accommodation arrangement, compensation package
and periodic communication as the form of solution to entire project failure. All that required
were cultural training, language knowledge and financial aspects for adjusting in new location.
On the other hand, suitable accommodation would have helped in reducing wok-pressure and
create work-life balance. Finally, proper communication along with exchange of data for project
milestone would have helped in reducing delayed deliverables. Therefore, such initiatives would
have helped Telequip in sustaining the project and deliver within proposed timeframe.

12GLOBAL HUMAN CAPITAL
Reference List
Bain, Paul G., Pieter M. Kroonenberg, and Yoshihisa Kashima. "Cultural beliefs about societal
change: A three-mode principal component analysis in China, Australia, and Japan." Journal of
Cross-Cultural Psychology 46, no. 5 (2015): 635-651.
Burmeister, Anne, Mila B. Lazarova, and Juergen Deller. "The Influence of Motivation,
Opportunity, Ability, and Tacitness on Repatriate Knowledge Transfer." In Academy of
Management Proceedings, vol. 2016, no. 1, p. 10427. Academy of Management, (2016).
Cao, Huanhuan, Jinhu Jiang, Lih-Bin Oh, Hao Li, Xiuwu Liao, and Zhiwu Chen. "A Maslow's
hierarchy of needs analysis of social networking services continuance." Journal of Service
Management 24, no. 2 (2013): 170-190.
Collings, David G. "Integrating global mobility and global talent management: Exploring the
challenges and strategic opportunities." Journal of World Business 49, no. 2 (2014): 253-261.
Cooke, Fang Lee, Debi S. Saini, and Jue Wang. "Talent management in China and India: A
comparison of management perceptions and human resource practices." Journal of World
Business 49, no. 2 (2014): 225-235.
Darawong, Chonlatis, Barbara Igel, and Yuosre F. Badir. "The impact of communication on
conflict between expatriate and local managers working in NPD projects of MNC subsidiaries: A
local perspective." Journal of Asia-Pacific Business 17, no. 1 (2016): 81-99.
de Eccher, Umberto, and Henrique Duarte. "How images about emerging economies influence
the willingness to accept expatriate assignments." The International Journal of Human Resource
Management (2016): 1-27.

13GLOBAL HUMAN CAPITAL
Feitosa, Jennifer, Christine Kreutzer, Angela Kramperth, William S. Kramer, and Eduardo Salas.
"Expatriate adjustment: Considerations for selection and training." Journal of Global Mobility 2,
no. 2 (2014): 134-159.
Firth, Brady M., Gilad Chen, Bradley L. Kirkman, and Kwanghyun Kim. "Newcomers abroad:
Expatriate adaptation during early phases of international assignments." Academy of
Management Journal 57, no. 1 (2014): 280-300.
Gunnigle, Patrick, Jonathan Lavelle, and SinéadMonaghan. "Weathering the storm?
Multinational companies and human resource management through the global financial
crisis." International Journal of Manpower 34, no. 3 (2013): 214-231.
Jackson, Susan E., Randall S. Schuler, and Kaifeng Jiang. "An aspirational framework for
strategic human resource management." Academy of Management Annals 8, no. 1 (2014): 1-56.
Jerome, Nyameh. "Application of the Maslow’s hierarchy of need theory; impacts and
implications on organizational culture, human resource and employee’s
performance." International Journal of Business and Management Invention 2, no. 3 (2013): 39-
45.
Klitmøller, Anders, and Jakob Lauring. "When global virtual teams share knowledge: Media
richness, cultural difference and language commonality." Journal of World Business 48, no. 3
(2013): 398-406.
Ko, Hsiu-ching. "Role of family in expatriate assignments: A qualitative study." The SIJ
Transactions on Industrial, Financial & Business Management (IFBM), The Standard
International Journals (The SIJ) 2, no. 10 (2014): 358-365.

14GLOBAL HUMAN CAPITAL
Lawter, Leanna, Richard E. Kopelman, and David J. Prottas. "McGregor's theory X/Y and job
performance: A multilevel, multi-source analysis." Journal of Managerial Issues 27, no. 1-4
(2015): 84.
Mohamed, Ramesh Kumar Moona Haji, and Che Supian Mohamad Nor. "The relationship
between McGregor's XY theory management style and fulfillment of psychological contract: A
literature review." International Journal of Academic Research in Business and Social
Sciences 3, no. 5 (2013): 715.
Nazir, Tahira, Syed Fida Hussain Shah, and Khalid Zaman. "Review of literature on expatriate
compensation and its implication for offshore workforce." Iranian Journal of Management
Studies 7, no. 2 (2014): 189.
Tung, Rosalie L. "New perspectives on human resource management in a global
context." Journal of World Business 51, no. 1 (2016): 142-152.
Varma, Arup, and Linda Russell. "Women and expatriate assignments: Exploring the role of
perceived organizational support." Employee Relations 38, no. 2 (2016): 200-223.
Yusoff, Wan Fauziah Wan, Tan Shen Kian, and Mohammad Talha Mohamed Idris. "Herzberg’s
Two Factors Theory On Work Motivation: Does Its Work For Todays Environment." Global
journal of commerce and Management 2, no. 5 (2013): 18-22.