This essay focuses on the term culture shock and various international HRM policies and practices which can be utilized for the purpose of effectively managing culture shock. The example of a Saudi Arabian Corporation, ARAMCO, which has successfully managed its culture shock is also provided.
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International Human Resource Management1 Success or failure of an individual during an international assignment depends on the experience of culture shock to a great extent. The successful handling of the culture shock leads the expatriate towards the adjustment phase where the capability of dealing with the diversity challenges is acquired. This essay focuses on the term culture shock and various international HRM policies and practices which can be utilized for the purpose of effectively managing culture shock. This essay also provides the example of a Saudi Arabian Corporation, ARAMCO, which has successfully managed its culture shock. When an individual moves across cultures, a phenomenon is experienced known as culture shock. Many adjustments are required to be made by the expatriate in the new environment in a very short time frame (Dowling, 2008). The environment challenges the frame of reference of an expatriate to such an extent that their sense of self, specifically with respect to nationality, comes into question. Culture shock can be defined as the personal disorientation felt by a person at the time when they experience an unfamiliar way of life as a result of immigration or a visit (Harzing & Rutsseveldt, 2017). Culture shock results in negative feelings regarding host country and its people and a desire to return home. Culture shock is experienced in two major ways by the employees when they are sent on foreign deputation. Firstly, when they are expatriated i.e. sent to a new culture and secondly, when they are repatriated i.e. when they return back to their own culture (Lles & Zhang, 2013). In other words, an important role is played by culture shock in the transfer of employee from one culture to another. However, the impact of culture shock can be reduced by way of creating awareness regarding the new culture with the international HRM policies and practices before entering into that culture. International HRM policies and practices can play a vital role for the purpose of managing culture shock. Firstly, the HR department needs to properly plan the issues to be addressed in training in order to prepare the expatriates for their experience in working abroad. The HR should focus on providing training which not only embrace business issues but also technical, lifestyle and cultural issues (Briscoe, Schuler & Tarique, 2012). Firstly, multinational enterprises (MNE) need to assess their requirements with respect to human resources in accordance with the type of international assignment and then making selection of the correct approach for staffing. Expatriates may be either parent country national (PCN) or third country nationals (TCN). The recruitment and selection will depend on the capability to take up challenges during international
International Human Resource Management2 assignments.TheHRdepartmentoftheMNEsshouldalsotakeintoconsiderationthe restrictionsimposedbyhostcountriesonthecitizensbelongingtocertainnationalities. Moreover, the knowledge of the language of foreign countries will facilitate the expatriate in communicating with the locals in the foreign country (Selmer & Lauring, 2015). However, alien culture, high cost of living, relocation anxieties, etc. can result in expatriate failure (Wang & Varma, 2017). Therefore, cross- cultural training should be provided to the expatriates which involves a complete coverage of the laws related to labor relations in the host country. The training must also explain the productivity standards and the disciplinary actions associated with the new job. The training should cover the topic related to living and working conditions, language and culture of the new country (Morley & Parkinson, 2015). The pre- departure training should also be provided to the spouse and children of expatriate which will allow their smooth transition to a foreign location (Wurtz, 2014).International HR managers should also include the practice of providing preliminary visits to the host country along with culture sensitization programs. Practical training should also be provided to the expatriates by employing relocation specialist. The expatriates should be provided adequate information regarding their assignment and location so that their responsibilities in advance.Evaluation of the performance of the expatriates should be performed from time to time on the basis of pre- defined parameters. Systematic processes should be evolved by MNEs for the purpose of evaluation of employees from diverse countries whoworkindiverseenvironments.Moreover,internationalHRMpoliciesrelatingto compensation and other benefits should be provided to the expatriates in the form of salaries, pay rise, relocation allowances, housing allowances, etc. which will act as a motivating factor for them to bring further improvement in their performance.Such motivation will enable them to face the culture shock and effectively deal with it. HRM practices will be influenced by the impact of cultural context. Hofstede’s cultural dimensions should be taken into consideration regarding the host country while recruiting and selecting the employees, providing training and development, compensation and making task distribution.The HR department should also plan repatriation training which assists the returning employees to become accustomed with the practices in their home office along with adjusting to the reporting hierarchy. This will again assist in managing the culture shock.
International Human Resource Management3 Nowadays, every multinational enterprise is undertaking the management of cultural shock for avoiding expatriate failures. A Saudi Arabian Corporation, ARAMCO, makes the use of extensive orientation programs for the expatriate employees along with their respective families. Practical housekeeping information is provided in such programs which includes information relating to shopping, day- to- day finances, local transportation and comparisons of the customs and beliefs of American and Saudi people. Such cross- cultural training provided by ARAMCO assistsinemployeesinperformingbetter.Theexpatriatesaremoregratifiedwiththeir assignments when they are provided with such an intense training. The effectiveness of the employees of ARAMCO is increased by the training provided by it as it allows them to relate morewiththeforeignculture.ARAMCOofferscompetitiveandattractiveexpatriate remuneration package after making proper comparison of the components of benefits and compensation with the industry practices. Such HR policy assists in motivating the expatriates for making their best efforts. ARAMCO considers the difference in culture of different countries by understanding every aspect of Hofstede culture dimensions and establish the HR practices that addresses power distance, individualism or collectivism, long term orientation, masculinity and uncertainty avoidance and roots its HR practices accordingly. It adopts geocentric and regiocentric approach where suitable employees are recruited from irrespective of nationalities and also from within the geographic regions of business.ARAMCO is therefore capable of managing the cultural shock (Kataria & Sethi, 2013). Therefore, it can be concluded that when an individual moves across cultures, a phenomenon is experienced known as culture shock.Such culture shock is capable of deciding the success or failure of an individual during an international assignment. Culture shock is experienced by the expatriate at the time of moving to a new culture and at the time of returning to their own culture. However, the impact of culture shock can be reduced to a significant extent by taking into consideration the international HRM policies and practices. The international HR department should significantly perform the function of planning, recruitment and selection for finding out employeesthatarecapabletomanaginginternationalassignments(Feitosa,Kreutzer, Kramperth, Kramer & Salas, 2014). Moreover, proper cross- cultural training should be provided to the expatriates in order to make them familiar with the new culture along with compensation in the form of benefits and reward for motivating them to perform better.Saudi Arabian Corporation, ARAMCO, has become successful in managing culture shock.
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