International Human Resource Management

The report discusses the plan of DAK for opening factories in China and elaborates on the training and development of managers, cross-cultural training, experiential training, diversity and language training, and performance management system.

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management
Name of the student
Name of the University
Author note

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Executive Summary
The primary purpose of this report is to discuss about the plan that DAK can make for
preparing the managers for China. It elaborates on the aspect of training and development
that can be useful for the expatriate managers and the performance management system of
DAK that can be useful for the managers of DAK.

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Introduction
Human Resource Management is indicative of organizational activities that can help
in directing the human resources so that the organization can reach its goals. International
Human Resource Management (IHRM) can help an organization in achieving competitive
advantage at the national along with the international level (Wilson 2014). IHRM is inclusive
of different functions like recruitment, selection, training and performance appraisal. This
report discusses about the plan of DAK that can help it in opening factories within China. It
also elaborates on the reward along with performance management system for the managers.
Plan of preparing the managers in China
The aligning of training and development with the business strategy of an
organization in the international context can prove to be quite complex. The international
firms have to face many hurdles like multiculturalism along with geographic dispersion. The
strategy chosen in an organisation should be congruent with the external environment that
can help an organization to be successful in the international context (Pinnington, Debrah and
Rees 2015). DAK has to prepare the managers within China and the training and
development should be aligned with the transnational strategy in between the headquarters
and the subsidiary. Cross-cultural training can help the expats in determining the appropriate
cultural behaviour that can help the employees in performing the necessary task within the
host country. The expatriates have to face cultural shock and it may cause anxiety,
helplessness and irritability for the expatriates (Konopaske and Werner 2005).
Cross-cultural skills should be taught to the employees that can help the mangers in
facilitating interaction within the foreign culture. The managers in China can be prepared
with the help of experiential training that is inclusive of the workshops along with
simulations. Look-see trips can be organized for the managers that can help them in gaining

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real experience about China. It can provide the managers of DAK with the opportunity of
meeting people in China so that they can get idea about the new environment. It can help in
providing the expatriates with a positive view of the host country and the pre-departure
programs can have a great effect on the managers. The experiential programs can prepare the
managers in the direct manner and it can help in building the intellectual experience of the
expatriates (Cascio 2018). The training can prove to be effective as it emphasizes on the
aspect of learning by taking recourse to some action and the practical experiences can prove
to be of great help for the expatriate managers.
Diversity along with language training can help the employees in working effectively
within a diverse workforce and it can prove to be useful for people in working within a
multicultural workplace. The emergence of a standard company language can prove to be of
great help for the expatriate managers. In the event of the expat speaking the language of the
host country he will have easier experiences (Sung and Choi 20140. The individualized
tailored programmes can help the expatriate in addressing the specific needs. The
experienced expats can work with the new expat that can help the managers in adjusting to
the new environment of China. The immersion programmes can prove to be greatly helpful
for the managers of DAK who have to settle in China as it can help them in gaining extensive
understanding in relation to the local culture. Global meetings can also be made use of for the
expatriate managers so that they can adjust successfully in the new environment of China.
The intercultural training provided to the managers can help them in adjusting to the cultural
differences and this can help in ensuring that the expatriate managers get a positive
experience when they are working in the foreign country (Asfaw, Argaw and Bayiss 2015). It
is important that the managers are aware about their mind set and expectations that can help
them understanding the areas where the cultural gaps exist. The participative training can
prove to be of much help for the expatriates in adjusting to the new environment of China.

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The training should inform the managers about the challenges that they might face on the
foreign land. The E-learning platform can be made use of by the organization in order to
prepare the expatriates so that they can adjust successfully in the new environment of China.
Language can prove to be the roadmap pertaining to culture. The expatriate managers should
be provided with training in relation to the language of the foreign country that can help them
in adjusting to the foreign culture. The expatriate training can support the employee in
relation to upcoming assignment. The training can help integration to that of the future role
and it can help in providing the expatriates with the knowledge regarding delegation,
leadership and motivation.
Reward and Performance management System
It has been found that the expatriates feel cut off from that of the headquarters that can
have an impact on their organisational performance. The strategy of the organisation should
change and it should be revised so that the organization can prove to be successful in the
international arena. The mission of the organization does not change and hence it is important
to introduce rewards in the performance management system that can help the expatriate
managers in adjusting to the new cultural milieu. Modern workforce comprises of techno-
savvy employees and the employees should be aware about the market realities that can help
the expatriates in adjusting to the new situation. In the event of the wealth being valued by
the organization, appropriate rewards should be provided to the employees. The rewards can
provide encouragement to the managers that can help them in adjusting to the new
environment of China (Mellahi and Collings 2010). The balance sheet approach can help in
equalising the purchasing power of the employees at that of the comparable position level.
The incentives provided to the expatriate managers can help in offsetting the qualitative
differences in between the assignment locations. The basic objective of the performance
management system is to ensure that the expat managers can maintain the home-country

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living standard and they can get the financial inducement that can help them in maintaining
their lifestyle in the foreign country (McDonnell et al. 2010).
The total rewards programme can be made use of by DAK and the performance based
rewards can include the incentives along with other tactics that can help in achieving the
specific result of the organization. The career rewards should be provided to the expatriate
managers of DAK that can help in supporting the employees in their international
assignment. DAK can allocate the total rewards investment to that of performance based
category that can help in the developing of new products along with services. The total
rewards would act as employee value proposition for the company. DAK should make use of
the adequate reward mix that can help in motivating the employees of DAK. The
compensation approach that can be made use of by DAK for the expatriate managers is the
global market approach. In the event of global market approach, the assignees are held on
equivalent compensation scale irrespective of their home country.
The managers would be ready to accept an international assignment if they can
perceive positive value in relation to the assignment. These benefits can have a positive
impact on the expatriate managers and they would become more willing to accept a global
assignment if they can get positive rewards. The employees working overseas should be
provided with travel medical provision along with host-country health coverage. The health
care plan for the expatriate should include that of pre-departure planning along with physical
examination. The managers of DAK travelling abroad are very concerned about their
healthcare and due attention to this factor can help in improving the performance of the
employees (Shen 2005). The healthcare coverage can help in benefitting assignee and it can
help in increasing global assignment acceptance of the expatriate manager of DAK.

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The temporary living allowances can provide the managers of DAK with additional
amount of income that can help them in covering any kind of cost pertaining to living
difference between home and that of the host country. Housing allowance should be provided
to the expatriate manager of DAK that can help them in maintenance of a standard of living
when they are living abroad. The tax can prove to be tremendous expense for the expatriate
manager when they are settling down abroad. Tax equalization facility can help the expatriate
managers in paying the same income like that of their home country and this can help in
providing the expatriate manager of DAK with encouragement that can help in managing the
employee performance abroad (Suutari and Tahvanainen 2002). The retaining of the frequent
flier miles can help the expatriate manager of DAK in reducing the travel expense by making
use of mileage points that is generated by computer. The retaining of the travel miles can help
in benefitting the assignee and increase the global assignment acceptance of the expatriate
manager. The home leave allowances should be provided to the expatriate managers that can
help them in returning home so that they can visit their friends along with their relatives. Rest
along with relaxation leave should be provided to the assignees that can help them in taking
vacations at the expense of the company.
Conclusion
IHRM can be helpful for an organization in getting competitive advantage at the
global level. The expatriate managers of DAK should be provided with cross-cultural training
and there should be alignment of transnational strategy between headquarter and subsidiary.
Cross-cultural training can help in the determination of the right cultural behaviour that can
strengthen the employees to deliver effective performance in the host country. The cultural
shock experienced by the expatriates can hinder their performance in host country as it can
give rise to anxiety and irritability. Performance Management System can help the expatriate
managers of DAK in adjusting to the new cultural situation. Healthcare is a concern for the

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expatriate managers and paying due attention to this aspect can augment employee
performance. The expatriate managers of DAK should be provided with housing allowance
that can help them in maintaining their standard of living abroad.

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References:
Asfaw, A.M., Argaw, M.D. and Bayissa, L., 2015. The impact of training and development
on employee performance and effectiveness: A case study of District Five Administration
Office, Bole Sub-City, Addis Ababa, Ethiopia. Journal of Human Resource and
Sustainability Studies, 3(04), p.188.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Konopaske, R. and Werner, S., 2005. US managers' willingness to accept a global
assignment: do expatriate benefits and assignment length make a difference?. The
International Journal of Human Resource Management, 16(7), pp.1159-1175.
McDonnell, A., Lamare, R., Gunnigle, P. and Lavelle, J., 2010. Developing tomorrow's
leaders—Evidence of global talent management in multinational enterprises. Journal of
world business, 45(2), pp.150-160.
Mellahi, K. and Collings, D.G., 2010. The barriers to effective global talent management:
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Pinnington, A., Debrah, Y.A. and Rees, C., 2015. Training and Development: Developing
Global Leaders and Expatriates. In International human resource management/Ann-Wil
Harzing and Ashly H. Pinnington/4th ed.. Sage Publications.
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Sung, S.Y. and Choi, J.N., 2014. Do organizations spend wisely on employees? Effects of
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