BUSM4497 Global HRM: Expatriate Policy Report - Accounting Firm

This report presents an expatriate policy designed for an Australian accounting firm with joint ventures in the United Kingdom, Turkey, and China. The policy addresses key aspects of global human resource management, including selection processes, pre-departure training (incorporating cross-cultural training), performance and compensation management during assignments, and post-assignment considerations. It is based on leading practices and incorporates insights from academic sources, including Vance (2015) Chapters 6-10. The report emphasizes the application of Hofstede's cultural dimensions to each country, providing definitions and explanations of each dimension to inform policy decisions. The policy is structured as a formal document, including a policy statement, and addresses equal opportunity issues, particularly concerning women and minorities, reflecting the company's strong commitment to fairness and inclusion. The goal is to provide quality services at a competitive price, aligning with the company's strategic objectives.

BUSM4497 Global HRM
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Executive Summary
Global human resource management has required an appropriate understanding of factors and
elements design at the globalized level. It has supported a company to draft proper culture so
that all associates can perform better with proper management of quality. The expatriate
policy has been developed so that people belong to the overseas location can easily cop up
with new culture arrangement. This has supported with an evaluation of global staffing which
signifies that recruitment needs to be appropriate and effective. Along with this, training and
development have facilitated many opportunities for business with control over the retention
of employees. Managing international assignment has to lead a business towards the right
direction which considers as a costly activity but assist management to accomplish desired
goals and objectives.
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Contents
Executive Summary...................................................................................................................2
Discussion..................................................................................................................................4
Aspects related to expatriate policy.......................................................................................4
Global Staffing.......................................................................................................................4
Global workforce training and development..........................................................................5
Managing International Assignment......................................................................................6
Hofstede Cultural Dimension.................................................................................................7
Cultural dimension applicability in different countries.......................................................10
References................................................................................................................................13
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Discussion
Aspects related to expatriate policy
Expatriates are mainly got the relocation allowance so that an individual easily move from
one place other (Chang and Smale, 2013). The expatriate policy is developed for such people
so that they can get an appropriate allowance for facilitating their livelihood and establish
themselves in a change environment or culture. The expatriate policy of the Ernst is revolved
around different factors and aspects which lead to assess and determine in the below
argument.
Global Staffing
Staffing is a process where association mainly moving employees in, out and throughout the
workplace to fulfill the work demand and accomplish signify organizational objectives
(Joarder et. al., 2019). It is a process through which business mainly use skills and
opportunities to retain maximum staff personnel. Global staffing is assessed as the process
under which the HR manager determine talent from the world to evident competitive reality.
Staffing becomes more and more effective with assistance and use of top qualified associates
at the workplace (Pahos and Galanaki, 2019).
Global staffing at different locations mainly influences due to distinct situational factors like
trends, conditions, nature, and duration of work at the international level, availability of
resources for staffing, etc. Ernst has focused on global staffing process where they provide
appropriate pre-departure include training and cross-cultural training to the individual
(Thunnissen, 2012). It is helpful to gain a strong familiarity with the culture so that people
can easily work over there. Ernst wants to grow its business in China, Turkey, and the United
Kingdom. Hence, the business has assessed each location culture on a primary basis so that
they can reflect appropriate training about culture to all of them. It is helpful to them to
manage their work and ascertain objectives and targets in an appropriate manner. Ernst also
works on the communication attribute of each individual so that they can facilitate
information from one person to another. Along with all such factors and elements, global
staffing of Ernst needs effective evaluation and understanding of government policies about
salary, work hours, etc. The company needs to provide incentives and salary as per the
regulation of the government of China, Turkey, and the United Kingdom. In the UK, the
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maximum working hours would be 8. Thus, Ernst needs to assess this section properly so that
business become successful and execute their operations in an appropriate and most
innovative manner.
Global workforce training and development
Training and development or pre-departure is a major factor for the business in the context of
a global workforce. Many of the business think that training is a waste expense for business
whereas some signify it as a beneficial attribute of a business (Bhurtel, 2015). Global
workforce training and development is helpful to enhance individual skill and potential to
accomplish desired goals and targets properly. Training is assessed as a valuable investment
to retain employees, utilize their work attribute for better production activities and develop a
prosperous leadership (Cohen, 2017). Ernst has developed a concept of training and
development with the learning of cross culture so that business become successful. It mainly
focuses on a certain range of activities include:
 Improvement in quality and maximize customer satisfaction
 Decreasing cost
 Learning and knowledge management of an organization
 Alignment with global aspect and attribute
 Growth of the global talent force
Ernst has indicated all these attributes in their policy statement for expatriate. Ernst can
maximize their user satisfaction in the UK, China, and Turkey with appropriate training and
development of candidates for in overseas locations. Moreover, it is helpful in globalized
management of knowledge which further proclaims growth of talent force. These are the
aspects which can be accomplished with the use of suitable training. Ernst has focused their
work in China, Turkey, and the UK with consideration of different domains. The cognitive
domain is helpful in effective learning and involvement of intellectual thinking process. The
affective domain is helpful for people to improvise their emotions, feelings, values, and
beliefs, etc. The psychomotor domain of learning is facilitated on the acquisition of physical
skills so that an individual makes them capable to sustain at overseas locations. Ernst has
worked on all these things on a prior basis and indicates some challenges while rendering
training to all people recruited from overseas locations.
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Ernst has focused on some more frames so that they can learn many new things. In the
training for global workforce planning, some principles need to consider. It mainly focuses
on cross-cultural learning and development. It includes familiarity with culture and society.
They all need to manage the mutual trust on one other with respect and honesty on one other.
Many people in training are culturally sensitive. UK and China people are more active
towards the work as compared with Australian and Turkey people. Hence, this cultural aspect
is essential to consider while facilitating global training and development session.
Managing International Assignment
Management of International people is a difficult task for the Ernst. It needs huge investment
and more focus on the individual with the development of a single culture (Christian et. al.,
2011). It is hard for a company to facilitate a single culture while dealing with different
people. It represents a cost of $300,000 to $1 million annually. One more thing on which
Ernst need to focus is constituted with a risk of failure. One of a study has reflected that out
of 10 from 20 return to home due to the inability of adjustment at an overseas location.
Australian people are highly motivated and have the ability to cop up at overseas locations.
Underperformance and failure of work are also assessed as a failure of the assignment
(Collings and Isichei, 2018). Hence an indirect cost leads to incur on a project with early
mistakes, a lengthy period of adjustment, the decline in market share, and poor relationship
with clients, etc. Thus, Ernst has found that management of international assignment is not an
easy task for a business and need more and more focus. Ernst has included a five stage of
international adjustment so that business can facilitate their work in an appropriate manner:
 Stage 1: Tourist
 Stage 2: Cultural shock
 Stage 3: Adjustment
 Stage 4: Performance improvement
 Stage 5: International Mastery
Ernst has put such stages in its management of the international assignment (Shortland,
2016). It enables them to manage employees at the overseas location and make them capable
to handle their attribute. People need to face cultural shock initially so that they can grow
their cognitive domain with the affirmative domain. Ernst employees will get international
mastery while assessing all aspects of the international location properly. Thus, such factors
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are needed to ascertain by Ernst for appropriate management of assignments. It is an essential
part of Expatriate policy developed by the Ernst while facilitating operations in China,
Turkey, and the United Kingdom.
Hofstede Cultural Dimension
Hofstede Cultural Dimension is helpful to make a valuable cross-cultural communication and
understanding of culture. It is helpful in developing global cooperation with an understanding
of cultural differences. It is mainly focused on 6 aspects and elements in every country to
evaluate cultural change properly (Mindtools.com, 2019):
 Power Distance Index (high versus low): It mainly refers and indicates about the
inequality that leads in a particular region between different people and without power
aspect.
 Individualism Versus Collectivism: This element indicates the strength of the ties
which people anticipate with others within a community. High score presents a lack of
interpersonal connection between one other.
 Masculinity Versus Femininity: Distribution of the roles between men and women
is really essential. Many societies are male-oriented. It is mainly found in Japan and
Australia where a difference can be assessed among male and female.
 Uncertainty Avoidance Index (high versus low): Many people while life at overseas
location suffers from anxiety, etc. This dimension is helpful in order to manage things
against anxiety.
 Long- Versus Short-Term Orientation: This dimension is also analyzed as the
aspect of "Pragmatic Versus Normative with the context of time horizon in a society
display. Short term orientation countries are focused on principles and trust where as
long term orientation modest.
 Indulgence Versus Restraint: In this dimension, people are optimistic and focus
more and more on personal happiness (Fan et. al., 2016). Along with this, it also
indicates freedom of speech which refers to the personal attribute.
Ernst has to understand these aspects while developing a policy for expatriate. Along with
this, they need to clearly differentiate the culture of four countries include Australia, China,
Turkey, and the UK. All these countries present different culture and background of work
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which need evaluation and consideration. Below is a graph which indicates all cultural
dimension of Hofstede in different countries context (Hofstede Insights, 2019):
(1: Hofstede Insights, 2019)
(Sources: Compare countries - Hofstede Insights, 2019)
The cultural dimensions are required to link with every single country so that local
dimensions lead to assess properly. Below is a clear explanation and link of cultural
dimension with each of the country so that Ernst can deal with people accordingly:
Basis Power
distance
Individualis
m
Masculinit
y
Uncertaint
y avoidance
Long
term
orientatio
n
Indulgen
ce
China Power
distance is
high in the
Chinese
culture as
In China,
people are
helpful and
supportive
of one other.
Chinese
people
provide
equal
opportuniti
Chinese
culture
stated that
people
easily
Chinese
culture
dimension
has been
proclaime
Chinese
culture
indicates
the
following
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all powers
mainly
associate
in the
hands of
the
governme
nt. Hence,
people are
mainly
discipline.
They always
ready to
help one
other as they
focus on
collectivism
and
teamwork.
es to
women
like men so
that they
can
upgrade
their
standard.
manage
them at an
overseas
location.
They are not
going to
suffer from
any
homesickne
ss.
d that
people
think
about the
future and
work on
principles
and
values.
They
maintain
their work
efficiency
and
consistenc
y.
rules and
not lead
to indulge
in any
task or
project.
Turkey Power
distance is
moderate
where
people are
somehow
disciplined
and
appropriat
e for the
work.
Turkey and
China
culture are
similar to
one other.
The score of
Turkey
presents that
people help
one other
and support
to grow.
Turkey
culture is
getting
improve
but still in
many
regions,
male
dominance
is high.
Turkey
culture
stated that
people
relatively
suffer from
uncertainty
avoidance
outcomes.
They easily
left the job
and moved
to the home.
Turkey
culture
dimension
describes
that
people do
not live in
an
overseas
location
for a
longer
duration.
Hence,
they are
short term
oriented.
Turkey
people are
similar to
the
Chinese
cultural
aspect of
society.
They also
restrain
themselve
s without
indulging
in any
activity.
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United
Kingdo
m
High
inequality
is
identified
in the UK
due to
power
distance
between
various
regions.
A high score
indicates
that people
mainly think
about
oneself
rather than
work in a
team.
The UK
provides
equal
opportuniti
es for
female so
that they
remain
independen
t.
UK people
are focused
on
individual
factor where
they also
tried to
manage
their work
and life at
an overseas
location
without so
many
hurdles and
problems.
A mixture
group is
identified
in the UK
where
some
people
believe
long term
aspect
whereas
some
define
short term
orientatio
n as the
best one.
UK
societies
indulge
themselve
s in the
task as
they
found
some
personal
happiness
into it.
Cultural dimension applicability in different countries
Cultural dimensions are such elements which present a country nature or social attributes of a
people in which they facilitate their lives (Fanet. al., 2016). The expatriate policy of Ernst has
included some cultural dimensions which need to apply to countries like China, the UK,
Turkey, and Australia. Such dimensions are important to understand by the senior
management of Ernst so that they can develop a suitable policy for the future. This cultural
dimension assessment and application is helpful to assess the power of influence on every
single candidate. The expatriate policy has included global training, health, incentives,
equality with an evaluation of each country:
Basis China UK Turkey
Power distance High Low Moderate
Individuals vs.
collectivism
Low High Low
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Masculinity vs.
Femininity
Moderate Moderate Relatively high
Uncertainty
avoidance
Low Low High
Long term vs short
term orientation
High Moderate Relatively low
Indulgence Low High Moderate
The HR manager of Ernst needs to focus on such stated table which supports them in
assessing individual properly. An HR manager is required to focus on every single dimension
so that they can handle people properly:
 Power distance: HR manager is required to work on power distance attribute for
Chinese and Turkey people. People mainly refer to power as they need appraisal and
feedbacks timely to manage performance in a longer duration (Joarder et. al., 2019).
The HR manager has to aware of policies of Ernst to UK people so that they can
maintain their level of work.
 Individualism: HR manager is required to provide proper training to all people of
Turkey, China, and the UK. Teamwork is important to achieve all desired goals and
targets. Thus, the UK individual requires motivation and proper training to be a part
of a team and avoid individualism. Chinese and Turkey people are already engaged in
collectivism process.
 Muscularity: HR manager of Ernst has to provide equal opportunities to the female
of all three countries. Females are getting maximum opportunities in local country but
need little more care in Australia. Hence, proper safe housing and cab facility
encourages the female to work with Ernst.
 Uncertainty avoidance:Turkey is the most uncertain region which assessed from
Hofstede cultural assessment. Thus, a clear description of a job is required for people
and sign a bond of more than 1 hour so that they can be a part of a company for a
longer duration. Moreover, provide them traveling allowances on 3 months basis
which motivates them for work.
 Long term orientation: HR manager has to signify all long term and short term
targets to people belong to Turkey, China, and the UK. IT is helpful for the company
to derive maximum outcome from such an individual. They have some long term
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targets and short term targets which need to fulfill by the manager of Human resource
properly to motivate and encourage them.
 Indulgence: UK and Turkey people are less indulge in any task. UK associated
people focus on individualism rather than collectivism. Hence, the HR manager is
required to organize some parties, induction, monthly meeting sessions so that all
people can interact properly and work as a team.
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References
Bhurtel, A. (2015). Technical and Vocational Education and Training in Workforce
Development. Journal of Training and Development, 1, pp.77-84.
Chang, Y. and Smale, A. (2013). Expatriate characteristics and the stickiness of HRM
knowledge transfers. The International Journal of Human Resource Management,
24(12), pp.2394-2410.
Christian, M., Fernandez-Stark, K., Ahmed, G. and Gereffi, G. (2011). The tourism global
value chain: Economic upgrading and workforce development. G. Gereffi, K.
Fernandez-Stark, & P. Psilos, Skills for upgrading, Workforce development and
global value chains in developing countries, 276-280.
Cohen, E. (2017). Employee training and development. In CSR for HR (pp. 153-162).
Routledge.
Collings, D. G., and Isichei, M. (2018). The shifting boundaries of global staffing: integrating
global talent management, alternative forms of international assignments and non-
employees into the discussion. The International Journal of Human Resource
Management, 29(1), 165-187.
Fan, D., Xia, J., Zhang, M. M., Zhu, C. J. and Li, Z. (2016). The paths of managing
international human resources of emerging market multinationals: Reconciling
strategic goal and control means. Human Resource Management Review, 26(4), 298-
310.
Hofstede Insights. (2019). Compare countries - Hofstede Insights. [online] Available at:
https://www.hofstede-insights.com/product/compare-countries/ [Accessed 21 May
2019].
Joarder, T., Tune, S., Talha, T. and Ahmed, S. (2019). Assessment of staffing need through a
workload analysis in Jhenaidah and Moulvibazar, Bangladesh: a Workload Indicator
of Staffing Need (WISN) study. The Lancet Global Health, 7, p.S37.
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Mindtools.com. (2019). Hofstede's Cultural Dimensions – Understanding Different
Countries. [online] Available at:
https://www.mindtools.com/pages/article/newLDR_66.htm [Accessed 21 May 2019].
Pahos, N. and Galanaki, E. (2019). Staffing practices and employee performance: the role of
age. Evidence-based HRM: a Global Forum for Empirical Scholarship, 7(1), pp.93-
112.
Shortland, S. (2016). The purpose of expatriation: why women undertake international
assignments. Human Resource Management, 55(4), 655-678.
Thunnissen, M. (2012). Global Talent Management (Global HRM)20122Hugh Scullion and
David G. Collings. Global Talent Management (Global HRM). Routledge, 2011. 216
pp., ISBN: ‐13: 978‐0415871716. Personnel Review, 41(6), pp.852-854.
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