International_Management_Part_2

International_Management_P
art_2
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
a) Expatriate failure in term of cultural adjustment.....................................................................3
b) Discuss factors which contribute to notion of globalised economy with international
policies.........................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
International management can be defined as coordinating and organizing business
operations of organizations who are operating in more than one country. Managers are provided
with responsibility to be engaged in management of international human resources. They can be
considered as major determinant of success or failure in international business. International
management is one of the most important area in which company needs to lay emphasis upon.
This because now a day’s companies are no longer only serving domestic markets, they are
expanding their business in international market too as trade barriers has been removed (Sanders
and et.al., 2016). Present report will lay emphasis on discusses the evidence about expatriate
failure, especially with regard to cultural adjustment and consider the factors that maximize
expatriate success. Also, it will describe about factors which contribute to notion of globalised
economy with international policies.
TASK
a) Expatriate failure in term of cultural adjustment.
Staffing in the multinational companies is considered to be challenging task but crucial and
strategic issue to international huma resource management. MNC have to decide the use of
international staffing in term of different concern prevailing in business environment. Expatriate
failure tends to encompass the number of issues ranges by preventing return on investments due
to expatriates such as early returning, underperformance with adjustment problems (Erogul and
Rahman, 2017). Rate of expatiate failure vary significantly from both industry and destination.
expatriates sent to emerging economies have higher rate of failure as compared to developed
countries. There ae various kinds of reason for the expatiates failure such as
Hofstede cultural dimension: The cultural dimensions represent independent preferences for one
state of affairs over another that distinguish countries (rather than individuals) from each other. It
works on so many dimensions. It has been analysed that there is power distance index in this. In
this there are low power and high power people. Some of the people are provided with high
power, this can be because of cultural background. This theory also emphasises that there is must
be effective communication between culturally diverse employees.
Cultural shock
This refers to be ability for adapting the new and different cultures as the major key for
expatriate’s success. This create a sense anxiety, depression or confusion which result from
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being cutting off from familiar culture, environment and norm living in foreign country or
society. Professional who do not possesses the skills have to struggle in new environment. a
good beginning is not being sign of success as cultural shock have many phases such as
honeymoon period at the beginning is common. Facing difficulty in cross cultural adjustment
can result in premature return of expatiates resulting in failure.
Family
Family is another important factor in expatriate’s failure as usually multinational
companies are ignoring families of expatriates. Family have been considered as important aspect
in success or failure on an individual. If the family member of expatriates comfortable in making
adjustment with new culture will create a direct impact on performance of employee. due to this
they are not able to focus of work and completion of assignment.
So, these are two main reason responsible for expatriate failure in regards to cultural
adjustment. So, it is very important force multinational companies to make significant focus on
cultural shock and families. As ignoring the above on can result in increased expatriate failure in
work environment making adverse impact on productivity and profitability of firm.
Factors for maximizing the expatriate success
There are several ways issue by the international companies HR preventing the expiates failure
such as-
Sending out right people
An employee having the hard skills cannot be one perfect individual for working abroad. It is
very important for the international companies HR to understand from initially the skill and
qualities required to possess in the abroad role (Yussuf, 2018). HR have clear obligation to
identify these skill and qualities of potential expatriates during interview and screening process.
Expatriates should possess qualities such as
Cultural flexibility
Individual should love to travel may not be the indictor for cultural flexibility. there
could be clear reason that thy loving to travel with their families in their own county to spend
family quality time. but HR should look for one who love to travel and interact with people from
different culture. this will work out perfect for skill and attributes.
Enthusiastic communication
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The individuals who is always interest to learn different languages will be perfect for
international roles. As they will be always keen to pi\ck up local language and adapt different
communication styles to local norm.
Cosmopolitan outlook.
While interviewing the potential candidate, HR should understand the cultures where it has
the diverse social network, have interest in learning different languages or adapting culture of
others while travelling abroad.
Expat training
Providing holistic pre assignment training will be helpful to have improvement in
expatiates success. This is helping out individuals to be prepare for upcoming stressors ahead.
the training programmers can be from one month to one years based on requirement an
immersive approach. The uptraining programmer should have extensive language training,
information regarding health care, support to families. This all will be helpful in adapting
cultural wellbeing and how the things will be open in new home.
Expat support
A lack of the local support can be tuned out as contributing factors in overall failure of
expatriates. There is need for international companies HR to make supportive plan for the
individual arrives new destination (Guttormsen, Francesco and Chapman 2018.). Rate of
expatiate failure vary significantly from both industry and destination. Expatriates sent to
emerging economies have higher rate of failure as compared to developed countries. The
element which are included in these processes are such as -
Local supports
A local colleges or fellow person should be advice as individual at arrival and getting set
up in new country. There is need for things to be settle off as installation of cable, finding out
the proper and nearest health care facility. As these are will turned out frustrating for individuals
in new country procedure.
Updates from home country
There is need for new individual to get up with regular updates happening in home office.
This can be done through fortnightly calls or emails from nominated contacts. Further procedure
will be helping out flow individual to remain in loop a prepared for returning homes as soon as
assignment will be come to end.
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Satisfaction survey
The employee who have completed working in abroad should complete the short
satisfaction survey a regular interval. this will help out in identifying the serious issue faced by
expatriates in abroad country. internal companies HR should use the feedback provided for
optimizing the pre assignment training for future expats.
Plan for repatriation
The companies having most successful expats look to have repatriating the employees at
the end of assignments is successful manner. There is need to have successful panning over
former expatriates to return time home offices as they were away the part of workplace family.
the expatriates should never have the feeling regrading change in colleagues and company
objective when they were away.
Health care facilities
Providing the expatiates with the healthcare facilities in abroad is the key to physical nd
mental health and wellbeing. This offers wide ranges of group schemes for employers to create a
sense of motivating and upbuilding among individual to succeed.
These are some factors for maximizing the expatriate’s success and helping out overcome
cultural shock. HR of international companies should build up major consideration over
managing these challenges and achieve predefined goal and objective. Expatriates will get help
to adopt themselves in new working environments focusing upon efficient execution and
completion of different project assigned to them (DeNisi and Sonesh, 2016). HR will be
encouraged to manage the diverse workforces and motivate them in increasing the success
change of international projects.
Way to overcome the culture shock by expatriates
For expatriates, cultural shock has been the feeling of being awed by foreign culture that
tends to be different from own. Cultural shock basically discomforts the individual by creating
greater level of anxiety provoked due to mismatch of culture and languages. So, the important
step through which expatriates an overcome cultural shock is-
Health and safety aspects: In this organisations needs to make sure that health and safety of
workers working in different location must be taken into consideration. This will assist
organisation in increasing the loyalty of employees and also they will be able to be engage more
in firms.
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Learn about new places
The individual should learn about new paces before shifting. This can be done through
going online blogs, magazines, newspaper and books. This will creation adaptive interest in
individuals. books and website are better source of information.
Start getting family to neighbourhood
Expatriates fellow should try interact with people near buy helping out to expose to
local community. individual should develop the habit of asking question with genuine curiosity
will help out in leading wealth of information. Cross cultural training will one of useful option o
success. The individual should try to have careful watch over the local people actions in various
situation which include frustration
Earn local language
Perhaps being important aspect in relocation is to earn the languages and its accent.
Doing this, a sense of familiarity will be developed and individual become close to local ones.
This will create heathy relationship at workplace and bee effect to different assignments. expat
should keep the mind open viewing new culture with attitude of openness respecting for better
outcome which is more suspicious and critical (Onday, 2016). On the other hand, expat should
avoid stress associates to invariably assuring the physical tension. Individual should seek daily
activity all other form of relaxation therapy like yoga, meditation, or a massage never hurts. there
should be adequate sleep and fresh air, eat balanced meals, and go easy on enjoying the life in
different culture.
Join expat community
This is the first thing individual should follow by joining expat community which can
create the maximum chance to meet people for same country or cultures. Expat community will
bring major change in stage of frustration and turned out effective way to overcome cultural
shock. Expatriates will get help to adopt themselves in new working environments focusing upon
efficient execution and completion of different project assigned to them.
In addition, the successful expat tends to use the effective strategies to limit the negative effect
for cultural shock as-
Building the strong support system as viewing the time overseas as an opportunity of
personal growth. This will be helping out the individual to come out of his comfort zone by
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recording experiences though feeling. This will create the sense of humours and fitness in expat
abilities. Hence embracing the host culture is consider essential for dealing cultural shock
b) Discuss factors which contribute to notion of globalised economy with international policies
In recent times globalisation has highly impacted on growth and development of
organisation. It has provided a platform through which companies are able to expand and enter in
new market. However, there are several factors as well on basis of which globalised economy is
developed. This is because the factors have provided a framework and direction that has made
things easy to trade at global level. In addition to that, there are various policies formed as well.
It consists of rules and regulations which ae to be followed in international trade. Moreover,
globalisation has benefited as well in generating revenue and having presence in other nations.
Global trade means to trade between two countries and exchange of products and services as
well. furthermore, some international associations are set up to regulate and monitor trade. These
associations also form certain policy and laws that needs to be followed in doing trade. Besides
that, it is analysed that there are many factors led to globalised economy (Kotton and et.al.,
2018). They are explained as below
Technology: When businesses are operating in international market, it is expected from
them to behave in an ethical and accountable manner so that better trust and rapport can be
created. Various nations have implemented their ethically sound and accountable international
policies which all business is required to use (Al Ariss. and Sidani, 2016). For example, Britain
has implemented an activist foreign policy in order to work better with other countries. They
have also developed various laws rules and regulations for ethical transactions of business.
Currently United Kingdom is going through a degree of transition as a withdrawal from the EU.
Working in UK means foreign companies must be engaged in following all their policies. They
have implemented general data protection regulations. GDPR came into force in year 2018. This
law provides protection of person in regard to transformation and processing of their personal
data (Reicher, Harzing and Tenzer, 2018). Businesses are expected to make sure that privacy and
confidentiality are maintained when they are making use of personal data. They also need to
make sure that no information is shared by them without permission of them to others. Data
protection is necessary as organizations have started making use of advanced technology because
of which there are increase chances of cybercrime, so these laws and rules needs to be followed
strictly. This can assist international firms in properly establishing their business. Foreign
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business also needs to be involved in deciding the wage according to national living and
minimum wage. This was being renewed in 2018 and parliament has decided to increase wage in
this. this is the main factor that has led to result in globalized economy. Here, advancement of
technology with tools and technology has provided platform to companies to provide their
services to people in wide area. Furthermore, it has expanded the network and helped in
connecting suppliers, customers, stakeholder, etc. also, the data and info is shared with one
another quickly. In addition, with share of info market trends, needs, etc. of people is analyzed
and it has helped in producing products accordingly (Lee, Lin and Huang, 2017).
Difference in tax system- It is also a factor globalized economy in which the formation of
WTO, UN, etc. has removed gap of tax system. Here, they have established certain criteria,
policy, laws, etc. and defined specific procedure to trade globally. Also, companies are required
to sign agreement and MOU with nations to trade with them. Along with that, a common tax
system is followed by firms during trade that has enabled in increase in trading and entering in
more markets. Here, many nations have modification in tax system in order to attract FDI. They
are also providing subsidy and benefit in tax. For that a policy is formed that is applied and trade
is regulated with help of WTO. In this technology has played vital role as it has become easy for
firms to trade (Gornik and et.al., 2019).
Growth strategies of multinational companies
In their pursuit of revenue and profit growth, increasingly global businesses and brands
have invested significantly in expanding internationally. This is particularly the case for
businesses owning brands that have proved they have the potential to be successfully globally,
particularly in faster-growing economies fueled by growing numbers of middle-class consumers.
This has provided a platform to MNC to enter in new market and attract customers. With
effective marketing strategies it has resulted in increase in demand. Thus, for that firms are
developing growth strategy to trade at international level.
Trade in goods and services- With expansion in economies there is rise in trade in goods and
services. So, it is major factor of globalised economy. Moreover¸ trade in this has provided a
mechanism of integration of economic activities across borders. In addition, transmission of
goods across border has led to mobility in production (Ghadri and et.al., 2018). It is also reason
for international trade. Here, price equalisation has benefited by trading outputs. So, with that
trade barriers are overcome and transportation cost is reduced. Along with that, relative prices of
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goods and services is equalised at global level. There is high degree of international integration
in trade. Now, many countries like to trade more with each other. There has been a common
currency of trading in goods. Alongside, there is a proper system developed through which trade
is done. There is monitoring and controlling of overall system that has enabled in integration of
channel of trade. However, global trade has resulted in economic integration of dealing with
globalised economy.
Interacting of factor drive economic integration- Apart from technology, there are other
factors as well such as taste, public policy, etc that has enabled in globalise economy. In that it
has been found that with change in taste the needs of people are changed as well. But with wide
variety of products available it has allowed companies to provide them. this has resulted in rise
in economic integration. Furthermore, public policy toward economic integration has led to use
of technologies in it. Now, people are getting quick info about products. Besides instant
communication has created awareness. Therefore, integration of both has led to concept of
export and import. The merger and acquisition are done to enter in new market and maintain
flow of trade (Al Ariss. and Sidani, 2016).
So, it is evaluated that there are various factors of globalised economy. In that new
polices are formed by organisation such as WTO to regulate trade. There is change in entire
process as well of trade. Organisation with help of government is doing agreement and signing
MOU. There is also proper monitoring done of trade and all international laws and policies
guidelines is followed. Furthermore, there is flexibility as well to trade that enable in systematic
import and export of products from one country to another. With balance in economies the trade
is increasing at rapid rate. New markets are being developed that is attracting companies to enter
in it.
CONCLUSION
From the above study it has been summarized that international management is necessary
and it has assisted in gaining success. Human resources have been one of the most important
factors for success and failure of international firms. There are various factors which can be
contribute to the notion of a globalized economy. This has included technology, labor, human
resource, capital. The development of association such as WTO, UN has provided a framework
to trade at global level. In that laws and regulations are formed as well. It has also been analyzed
from the report in order to manage human resource properly adequate training and resources has
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provided to them. Organization culture has been improved so that employees can stay motivated
and better functions are performed.
Reflection – I will use the feedback provided to me by identifying my weak areas and points on
which I need to focus on. This will help me to search on internet about what changes can I do
and how it will help me in other assignment. Also, I will be able to improve my research and
analysis skills. With that I will be able to prepare next report in more effective.
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REFERENCES
Books and journals
Al Ariss, A. and Sidani, Y., 2016. Comparative international human resource management:
Future research directions. Human Resource Management Review.26(4). pp.352-358.
Ghadri, J.R. and et.al., 2018. International expert consensus document on Takotsubo syndrome
(part II): diagnostic workup, outcome, and management. European Heart
Journal, 39(22), pp.2047-2062.
Gornik, H.L. and et.al., 2019. First international consensus on the diagnosis and management of
fibromuscular dysplasia. Vascular Medicine, 24(2), pp.164-189.
Kotton, C.N. and et.al., 2018. The third international consensus guidelines on the management of
cytomegalovirus in solid-organ transplantation. Transplantation, 102(6), pp.900-931.
Lee, Y. D., Lin, C. C. and Huang, C. F., 2017. An overview of contemporary international
human resource management studies. Library Hi Tech.
Reiche, B. S., Harzing, A. W. and Tenzer, H. eds., 2018. International human resource
management. SAGE Publications Limited.
Sanders, D.B. and et.al., 2016. International consensus guidance for management of myasthenia
gravis: executive summary. Neurology, 87(4), pp.419-425.
Erogul, M.S. and Rahman, A., 2017. The impact of family adjustment in expatriate
success. Journal of International Business and Economy. 18(1). pp.1-23.
Yussuf, O.A., 2018. Major factors affecting the expatriate success: The case of Malaysian
expatriates. International Journal of Management and Human Resources. 6(1). pp.111-
142.
Guttormsen, D.S., Francesco, A.M. and Chapman, M.K., 2018. Revisiting the expatriate failure
concept: A qualitative study of Scandinavian expatriates in Hong Kong. Scandinavian
Journal of Management. 34(2). pp.117-128.
DeNisi, A.S. and Sonesh, S., 2016. Success and failure in international assignments. Journal of
Global Mobility: The Home of Expatriate Management Research.
Onday, O., 2016. Global Workforce Diversity Management and the Challenge of Managing
Diversity: Situation on World and in Turkey. Global Journal of Human Resource
Management. 4(1). pp.31-51.
Online
Reasons for expatriate failure and how HR can help.2018.[online]. Available through
.< https://www.allianzcare.com/en/employers/employer-blogs/2018/09/expat-failure.html>
8 Ways to Overcome Culture Shock When Moving to a Foreign Land.2020. .[online]. Available
through <https://www.writerrelocations.com/blog/8-ways-to-overcome-culture-shock-
when-moving-to-a-foreign-land/>
How to manage culture shock. 2020. .[online]. Available
throughhttps://www.expatica.com/living/integration/culture-shock-108735/
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