BUS6003: Expatriate Success, Cultural Adjustment & Global Economy

This report delves into the realm of International Human Resource Management (IHRM), focusing on the challenges and opportunities presented by expatriate assignments and the forces shaping the globalized economy. It examines the reasons behind expatriate failure, emphasizing the significance of cultural adjustment, and proposes strategies to maximize expatriate success through job-related factors, relational dimensions, motivational states, family support, and language skills. Furthermore, the report discusses the factors driving globalization, including technological advancements, containerization, economies of scale, and political issues, while also highlighting the importance of ethically sound and accountable international policies such as trade agreements, bilateral and multilateral agreements, and economic partnerships. The analysis provides a comprehensive overview of the complexities involved in managing human resources on a global scale and navigating the interconnected landscape of international business.

International HRM

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Discussion of evidence about expatriate failure in context of cultural adjustments and
consideration of factors in order to maximise expatriate success................................................1
Discussion of factor that are contributing to notion of globalised economy that demonstrate
awareness of ethically sound and accountable international policies..........................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
International human resource management is one of term that is used in an organisation for
purpose of managing human resource activities at international level (Charbonneau, Camiré and
Lemyre, 2020. It includes different function of human resource management like recruitment,
selection, training and development, remuneration and others. This project report includes
Discussion of evidence about expatriate failure in context of cultural adjustments and
consideration of factors in order to maximise expatriate success. It discusses factors that are
contributing to notion of globalised economy that demonstrate awareness of ethically sound and
accountable international policies.
MAIN BODY
Discussion of evidence about expatriate failure in context of cultural adjustments and
consideration of factors in order to maximise expatriate success
Expatriates can be defined as a person who is living in a country which is other than their
native country. It is a term that is used for educating skilled workers, professionals and for artists
for taking position in other country from their home country which can be done independently or
sent by their employers in abroad. It is linked with culture ties like language of country and other
things. This expatriate sometimes fails due to various reason like personal dissatisfaction of
candidate with their experience, early return home of candidate or termination, demand to
business relationship overseas, poor quality of performance in foreign assignment, overemphasis
of selection on technical competence and other things (Cho, 2018). There is some other reason
like incompetence of utilisation of employee, lack of adjustment of employees to local
conditions, not recognising business opportunities, inability to identify local successor a,
compounding factors, leaving early after repatriation, leave of assignment, overemphasis on
selection of technical competence, degree of training, degree of support and other things. As per
this study, it is identified that there is dissatisfaction among people with their job which is due to
culture shock in 10 to 20% of US expatriates. Rate of failure of expatriate is around 70% but this
rate is in developed country is around 20 to 40%. Among these candidates one third is those who
stayed in other country but their performance is not satisfactory as per organisation expectations.
Effect of failure of expatriate is on salary, travelling allowance, family allowances, cost of
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training and development. In this, cost that is related to company is around $250000 to $1
million.
Expatriate failure is one of internal problems of organisation which is due to various reason.
Among these, most common reason is that expatriate are not ready to stay up for a stated period
as they are facing many problems related to adjustments (Moreira and Ogasavara, 2018). These
adjustments are related to home sick, poor performance, leaving spouse and other things. Some
other reasons include inability of spouse to adjust or their dissatisfaction, expatriate personality,
lack of emotional maturity, expatriate inability to adjust with large responsibility for overseas
work, dissatisfaction with quality life, expatriate lack of motivation and other reason. There are
also problems related to inadequate culture, inadequate support from family and language
preparations and other things.
Employees are familiar with their culture of their home country and their procedure or
running of company. There are some companies which are operation under same name but is
having different rules as they are established in foreign countries. There are also some companies
which are claiming that they practicing same culture in their organisation but in real world
situation, it is not possible for them to do this. It is due to the reason that person of different
culture is behaving in different manner. All culture is different that is why employee as well as
employers are facing difficulties while dealing things in foreign countries. Things are handled in
different manner in different countries as their ways of operation are different in foreign
countries. At time of recruitment of an employee in a country, there are various issues are faced
by them in that country that create problems for them. These problems are started from job
evaluation to repatriation that is needs to be addressed. Problems are faced at every point like job
analysis, recruitment, expatriate selection, pre-departure training, international relocation,
expatriate development, networking among employees, job expectation and other.
Success Factors:
Job factors: There are various job factors that helps expatriate to get success in foreign
countries. These factors include technical skills, familiarity with host countries, managerial skills
as well as administrative compliance that make a candidate more capable to adjust in foreign
countries (Noethen and Alcazar, 2020). Technical skills help them to complete their work in
effective manner that is important in order to improve their efficiency. Familiarity with host
country helps candidate to adjust in that environment and made new friends over there.
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Managerial skills also improve capability of candidate to manage things in effective manner that
increase chances of success of candidate in foreign country.
Relational Dimensions: Relational dimension is another factor that is contributing to
success of expatriate. It includes tolerance for ambiguity, non-judgementalism, behavioural
flexibility, culture empathy as well as low ethnocentrism and interpersonal skills. Tolerance level
allow them to tolerate things and not react which helps them to avoid conflicts at new workplace.
Behavioural flexibility is also important for a person which helps them for purpose of controlling
their behaviour and allow people to react as per situation. Cultural empathy also helps a person
for purpose of accepting other culture and reduce differences in organisation.
Motivational State: Motivational state is also a success factor that helps a person for
purpose of accepting change and adjust in foreign countries. It includes belief in mission of a
person, interest in overseas experience, congruence with career path, willingness to acquire new
ways of attitude and behaviour and other things. Belief of a person with their mission helps them
to understand things and also allow them to adjust in new environment and motivate them to stay
with their goal.
Family situation: It is a factor that is related to willingness of a spouse to live in abroad,
stable marriage as well as supportive spouse (Zheng and Smith, 2019). In order to adjust in new
environment and new country, a person require from their family members and partners that
motivate them to stay with their goals and also helps them to adjust in new environment.
Language skills: Language is also helps expatriate to be successful in other country. As
it allows them to communicate with other person that does not make them feel along which is
important in order to get success. It is essential in order to get success in other country for a
expatriate which helps company to attain their goals.
Discussion of factor that are contributing to notion of globalised economy that demonstrate
awareness of ethically sound and accountable international policies
Factors contributing to notion of globalised economy
Technological advancement: It is one of factors that is contributing to globalised
economy as it leads to increase in export and import of products and service (Bartley, 2018).
There are various European countries like Germany as well as England that are exporting
chemical, mechanical as well as electrical plants to different country. It boosts to global economy
as it allows country to sell their latest and advance technology to other country.
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Containerisation: Cost of shipping through ocean is reduced due to various reason like
containerisation, efficiency and bulk shipping. It reduces cost of shipping cost in global economy
that assist countries for reducing prices of manufacturer to export market. It allows them to sell
their products to other country without bearing much cost and provide them opportunity to earn
more profit.
Economy of scale: It is also a factor that is contributing to notion of global economy. In
this, business is taking advantage of economy of scale which allow them to sell their products
and service to another country (Susman, O’Keefe and Wisner, 2019). With rise in economy of
scale, domestic market is small in order to satisfy needs of industries. It results in increasing
globalisation in an economy as there is various emerging countries with their own transnational
corporations.
Political issues: Political issues are another issues which create impact over business as
well as globalisation. It includes regional trade understanding as well as agreements that is
identified for purpose of scope of globalisation. Trading in European Union as well as special
agreements also also pushing globalisation in positive manner. These political party do these
things for favour of economy and also to get more favours from people.
International policies:
There are different types of methods for purpose of promoting and controlling international
trade in today’s world. It includes different methods that is range from government agreements
to ambitious attempts at integration of economy through supranational organisation like
European Union. These policies of international market in context of global economy is
mentioned below:
Trade agreements: These are agreements which are also known as commercial agreements
used for purpose of describing different contractual agreements between states concerning to
trade relationship (Michelini, Principato and Iasevoli, 2018). It includes both bilateral as well as
multilateral agreements between different states. These agreements among countries allow
countries to freely sell their products and service in effective manner. It promotes imports and
export in their countries which is important for economic growth.
Bilateral trade agreements: It includes those agreements which consist range of provision
that regulate condition of trade among countries or contracting parties. It consists stipulating
governing duties that is levies on import as well as export, transit arrangements for merchandise,
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fiscal regulations, custom base valuation, legal provision, administrative formalities and other
things. Bilateral agreements are including explicitly as well as implicitly provided agreements
like reciprocity, national treatment, most favoured nation treatment.
Multilateral agreements: It is the conclusion of world war two that correct problems that is
arise from protectionism that is increased in the year 1871 as well as trade restriction that is
impose between world war one and two. It is result of multilateral trade agreements as well as
other forms related to international cooperation that leads to general agreements on tariffs and
trade and also laid to foundation for world trade organisation (Phan, Sharma and Tran, 2018).
Preferential trade agreements: It is one of agreement which include two or more partners
who are preferred rights for entry for a certain product it can be done through reduction of duties
that is agreement on number of traffic lines. There are some countries which are using this type
of agreement that helps them to improve country relationship and also provide benefits to other
country.
Comprehensive economic partnership: It is another agreement that is including two or
more countries and also covering different regulatory issues (Situmorang, Trilaksono and
Japutra, 2019). It helps these countries to freely exchange foods and service, technologies and
other things among these countries. It creates favourable situation for them but companies need
to follow all these regulatory requirements.
CONCLUSION
From above mentioned project report, it can be concluded that international human resource
management is managing different activities related to human resource at international level.
Expatriate are those employees which are sent by a company to their other company that is
established in foreign country. There are various problems occur in this process which includes
language problems, culture barrier, lack of support from family members and other. There are
some factors which are contributing to success of expatriation which includes support from
family members, culture familiarity, knowledge of foreign language and other things. There are
various factors that are contributing to a company to expand their operation to global level.
These factors are political changes, advancement in technologies and other things. There are also
international policies which are contributing to global economy.
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REFERENCES
Books and Journals:
Charbonneau, E.F., Camiré, M. and Lemyre, P.N., 2020. Motives for and Experiences of
Expatriation to Coach. International Sport Coaching Journal, 8(2), pp.153-160.
Cho, J., 2018. Knowledge transfer to foreign affiliates of multinationals through
expatriation. Journal of International Economics, 113, pp.106-117.
Moreira, M.Z. and Ogasavara, M.H., 2018. Formal and informal institutions and the expatriation
assignment: The case of Japanese subsidiaries in Latin America. Japan and the World
Economy, 47, pp.18-26.
Noethen, D. and Alcazar, R., 2020. Experimental research in expatriation and its challenges: A
literature review and recommendations. German Journal of Human Resource
Management, 34(2), pp.252-283.
Zheng, Y. and Smith, C., 2019. Tiered expatriation: A social relations approach to staffing
multinationals. Human Resource Management, 58(5), pp.489-502.
Bartley, T., 2018. Rules without rights: Land, labor, and private authority in the global
economy. Oxford University Press.
Susman, P., O’Keefe, P. and Wisner, B., 2019. Global disasters, a radical interpretation.
In Interpretations of calamity (pp. 263-283). Routledge.
Michelini, L., Principato, L. and Iasevoli, G., 2018. Understanding food sharing models to tackle
sustainability challenges. Ecological Economics, 145, pp.205-217.
Phan, D.H.B., Sharma, S.S. and Tran, V.T., 2018. Can economic policy uncertainty predict stock
returns? Global evidence. Journal of International Financial Markets, Institutions and
Money, 55, pp.134-150.
Situmorang, R., Trilaksono, T. and Japutra, A., 2019. Friend or Foe? The complex relationship
between indigenous people and policymakers regarding rural tourism in
Indonesia. Journal of Hospitality and Tourism Management, 39, pp.20-29.
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