International Human Resource Management: Expatriation Analysis

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This report provides an overview of expatriation within the context of International Human Resource Management (IHRM). It delves into the primary motives behind expatriation, such as supporting foreign operations, organizational development, and filling skill gaps. The report also explores various forms of expatriation that HR departments might consider, including utilizing explorers, inpatriates, and third-country nationals, while also discussing the option of minimizing the use of inpatriates and third-country nationals. Furthermore, it critically evaluates the success of international transfers from both the perspective of the individual assignee and the organization, considering factors like cultural awareness, career development, and overall effectiveness. The assignment solution aims to provide insights into improving working efficiency, managing cultural differences, and achieving long-term organizational goals through strategic expatriation practices.
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International Human Resource Management
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCION..............................................................................................................................4
MAIN BODY...................................................................................................................................4
Question 1- Discussing the main motives of expatriation...........................................................4
Question 2- What are the varied forms of expatriation that human resource department may
consideration?..............................................................................................................................6
Question 3 Critically evaluation of international transfer both international assignee and
organization's view .....................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1
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EXECUTIVE SUMMARY
Expatriation concept in the recent time has been considered and utilized by varied
companies, as it enabled them to gain competitive benefits and enlarge customer base, which is
not possible for organization to do so when they do not take any strategic action such as
expatriation. With the help of this concept they obtain a lot of benefit in bulk in term of
improving local market knowledge and developing understanding about different needs of
consumers. The current assignment has been provided information about the sources, motives
and success of international transfer in individual and organizational success. From this study, it
has been identified that expatriation has managed the workforce diversity.Also, aims to provide
aid in increasing remuneration for company and increasing sales force working for the long run.
With the help of providing benefits for both company and personnels. Being more culturally
aware and learning more remote ways at nurturing and maintaining cultural diversifications. As
expatriation is required for improving more working efficiency and effective working of
company. Providing career development, tax savings, career development and overall
development. Needed for providing workplace support to firm and motives required for
improving Human Resources and cultural differences.
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INTRODUCION
International human resource management is one of those beneficial and essential
departments that provide varied benefits to an organization. They have experienced to hire,
acquire, retain and utilize skilled employees who are able to reach their company's aim and
objectives and make it successful in the market. They conduct procedure of acquiring, hiring and
using human resource in a multinational firm, for purpose of achieving strategic aims and
objectives on time in effective manner.
Expatriation is the best strategy and process, for which human resource department is
responsible. As it drive their attention toward transferring managers across national boundaries
for purpose of managing business operations and functions in effective manner. Project,
technological and automotive companies can utilize this strategy to obtain benefits in bulk. The
current assignment will be based on Hyundai motor, which falls under the category of leading
supermarkets in the Trinidad and Tobago. It is working in food retailer or retail industry and
effort to enhance consumer satisfaction. The study will explain the main motives and different
types of expatriation that the HRM may consider. Furthermore, the report will also critically
examine success of an international transfer from both the view of an individual assignee and
organization.
MAIN BODY
Question 1- Discussing the main motives of expatriation
In the recent time, organizations has taken steps to globalize their businesses and expand
across national boundaries (Zheng and Smith, 2019). This type of action may put a lot of
pressure on human resource department in term of managing everything from national to
international level in effective manner. It may drive their attention toward considering and
adopting expatriation concept. As it is considered as voluntary departure of person or experience
holder from one's specific nation to another country to live there permanently or far an extended
duration. An individual who does this named expatriate (Charbonneau, Camiré and Lemyre,
2020). Expatriation is also defined as procedure of leaving home town or region and live in a
new country to fulfil specific responsibility and achieve aim whether it is personal or
professional. Here, this process is implement in the context of business world as most of the
companies sent their skilled and highly experienced candidates or professionals to another
country where they have established their outlet.
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For different purposes, organizations conduct practice of expatriation and these reasons
are:
Support foreign operations in same company-
The decision of expatriation is taken in order to manage operations of a company across
domestics frontiers successfully and appropriately, which in return enable organizations to take
pleasure of increasing productivity, improving performance level and enhancing consumer
satisfaction, that is the main objective of varied firms in the world of business (van Bakel and
Salzbrenner, 2019). Global expansion is one of those practices that drive the attention of
companies whether it is small or large, public or private such as Hyundai, toward establishing
their ventures into those nations where they may obtain benefits more than last few years.
Furthermore, in order to manage these types of businesses, they conduct practice of expatriation
in term of transferring their skilled and talented candidates or managers. It may help them to
manage organization and candidates performance and also enable to enhance the satisfaction
level of target market, which is quite essential for firms to do so. Expatriates are knowledgeable
candidates of a firm in one nation who are assigned to work and perform in productive manner in
other nations either short or long term ventures projects. International human resource
management after making essential discussion about this process with key stakeholders may
effort to select individual person who is able to handle and manage business operations abroad.
Organizational development purpose-
Another reason to utilize and consider expatriation process is current one, throughout
which companies may obtain benefit of developing and managing their businesses performance
in effective manner, which is essential to them to do so systematically (Zhang and et.al., 2020). It
can be said that expatriates are capable to develop human resource as well as organizations
appropriately. They are able to develop strategic plans and strategies that a company may effort
to follow for purpose of succeeding in the market and gaining varied edges in bulk. Human
resource development along with organizational is the main purpose or motive of varied firms,
which enable them to be competitive and stand strong in the industry where they are running and
operating from longer time. Organizations may take initiative to sent their trustworthy person or
expatriate abroad just to develop talents and strengthen existing flow of cultural understanding
between head offices and other brands of similar enterprise that has been established in varied
nations.
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Fill position when there is a skill gap-
Along with above two reasons, this statement is also included in list of motives related to
the concept of expatriation that may put direct impact on a company and their current practices
as well as success both at national or global level. For example, in multinational companies there
are many positions accessible, for which a skilled employee or candidate is needed who may
play important role and manage everything according to their profession and accountabilities.
Their main motive is to several forms of position in firms and skill gap that may put negative
impact on growth of companies (Ohno, 2021). By doing this practice, they may take and provide
benefit in term of enhancing operational effectiveness and efficiency, which a firm may effort a
lot and develop strategic plans that is essential to do that appropriately. In the recent time, parent
nation nationals may sent to fill expatriate position abroad. As firms may become more
globalize, the role of expatriates as employees from other nations may increase (Lee, Weber, and
Rivera Jr, 2019). In simple words, staffing is the main purpose of expatriate as it may give them
chance to learn new concepts related to their professional which allow growing professionally
along with personally. They may attempt to fill knowledge and skill gap systematically and
successfully that in return provide unexpected edge that stakeholders may consider and take
decision to continue with this process that may help in rapid growth of firms.
Question 2- What are the varied forms of expatriation that human resource department may
consideration?
Unlike other departments, human resource management is also accountable to conduct set
of activities that may contribute to increase organizational productivity and performance level.
They take strategic decisions related to workers and the practices that they may conduct in
effective manner at workplace. Along with hiring, recruiting, selecting, training and more, they
may consider additional approaches and processes as well while working in a company at
international level. HRM may take different types of expatriation into their consideration that in
turn provide unpredicted benefits to firms such as MNCs.
Explorer-
In the world of global business, there are variety of expatriation accessible that HRM
may consider in order to obtain benefits in bulk. For example, they may take action to select
current form of expatriation, which drive their attention toward selecting one of those expatriate
who prefer to travel the world and comfortable to conduct this activity from long time. It can be
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said that explorer is one of those individuals or candidates in a company that loves to travel
globally and also tend to grab the opportunity of foreign shores when they work in a firm to
achieve specific aims and objectives (Five Types of Expats You Will Meet Abroad, 2021). Human
resource management may take this method into their consideration and choose the specific
candidate who is able to take responsibility of international transfer, which is not that easy for
anyone to fulfil as it require a lot of hard, creative mind and other key characteristics that enable
a person to survive and be successful in the new nation. In today's era, Asia is considered as one
of the most popular destinations of choices for western explorers. In foreign market, throughout
transferring expatriate in term of explorer firms may become a competitive brands and gain
benefits of obtaining competitive edges in form of increasing profits margin, enhancing
consumer base, and more.
Use of inpatriates-
Human resource department of any company whether it is established in the UK or Japan,
take approach to utilize this method. According to that, they may effort and consider less utilize
of inpatriates or might be third-country nationals. Inpatriate refer to an candidate of a
international organization who is form of foreign nation, but is transfer from an abroad
subsidiary to business organization head office (van Voorst, 2019). The main role of this
expatriation is to send a manager for temporary purpose that handle overall situation and
develop strategic plans to deal with critical issues related to any project or task in effective
manner that is beneficial for them as well as firms in which they work. Furthermore, they may
also use third nation nationals such as Northern Ireland that often define utilization in regard to
migration and individuals who are in transit and apply for visas to work in another nation. Third
country national is a resident or citizen of a region or nation that is not a member of EU and
other countries and assign to work and perform in one of those countries about which they are
unable to understand. They may contribute to made companies successful in term of developing
understanding about new market and consumers whom they target (Bebenroth and Froese, 2020).
It may contribute to enhance their satisfaction level and allow firms like Hyundai to expand
venture successfully with skilled teams of players. Host country nation such as Japan also
included in list of expatriation, that HRM may consider before taking any decision.
Fairly low use of inpatriates and third-country nationals-
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Human resource department may consider this method of expatriation as well, which in
turn provide key advantages to their company in term of managing employees performance and
developing better understanding about workforce diversity. For example, when an existing
employee may reach abroad they may develop comprehending between existing and new
workforce and try to share the view of each other perspectives (Morence and et.al., 2021). Most
of the companies in Germany, may take less interest to utilize inpatriates or any form of third
country experts as they may have faith to hire local people or experience holder, who may take
and provide edges to each stakeholder in term of enhancing level of pleasure regarding
increasing sales and productivity as well as profitability, which is quite challenging for any
company to feel so as it needed key resources, time and efforts as well along with additional
things which demand may occur suddenly. They may take approach to use parent country such
nationals as Scotland instead of third party, which is quite comfy and appropriate according to
their perspectives and situations. This method of expatriation play essential role in business
expansion and extension of brands, and assist to sustain for longer in chosen market., where
success chances are available in bulk.
All above methods and techniques are related to expatriation, which allow a company to
grow and be competitive in the competitive business world. It can be said that in an international
company, parent country nationals is a person or skilled employees whose nationality is the
same, but they are different from the nation in which they are performing and working at specific
position or designation. For example, when a British person may work for a Japanese based
subsidiary of a Japanese organization, they may know as parent country national, who is
accountable to conduct varied effective and beneficial practices and take accountable to
accomplish specific task or project for which they have hired or filled. With the help of
considering above tech, HR manager and overall department may gain advantages of improving
workers performance, boost their morale and allow to retain them for longer time, which is quite
essential and beneficial too.
Question 3 Critically evaluation of international transfer both international assignee and
organization's view
An international transfer is defined as the exchange or sending of an assignee to another
organization of different nation (Dickmann and Cerdin, 2018). Simply when a member of staff is
being appointed in place of a certain person in organization across domestic boundaries. Firm
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tends to send their workers in order to aid other company's betterment and high performance.
The international transfer puts and impact on both individual employee and firm in both positive
and negative ways. This form of process is successful when HRM may take overall procedure
into their consideration.
The transfer of assignee in an international company works as impactful process for both
enterprises. As it tends to provide foreign company with a new worker of differentiated and
enhanced skill set. That aims in improving the working of firm for more goal achievement.
Internation transfer puts a positive impact by.
Boosting productivity: With new international employee aids company in increasing or
boosting the productivity as, new worker comes with new skills (Eden and Byrnes, 2018). Usage
of new skill set by transferred employee helps in choosing new ways to overcome issues and
challenges firm is facing. Also in encouraging co-workers to initiate to work more effectively
with fitting interests and helps in company's productivity increase.
Smooth Transitions: When the new transferred employee adds to company, helps the
organization in transiting working smoothly. As he may tend to resolve the issues and problems
firms were already facing. With the help of its experiences may try to incorporate more
effectiveness in the enterprises by converting challenges into opportunities, hence increasing the
smoothness in organization.
Culture fit Environment: As the new employee assess in creating and maintaining
cultural environment effective to work with (Prud'homme and von Zedtwitz, 2019). With
maintain the equal opportunities to all cultural diversified people working in firm. By providing
familiarity with company's culture and overall environment.
Reduced costs: After the addition of transferred employee aims and assist in reducing
cost of organization with the generating of new strategies which includes usage of new factors of
production, or with new strategies to implement. These new strategies and methods aids
company in identifying hidden cost and changing firm's lowering profits to make an upward shift
and earning more profits in long run of firm.
New ideas and strategies: Another add on by new transferred assignee, assisting in
increasing sales for the firm by using already gained experiences and implementing various new
techniques and strategies according to the situations (Mota-Rojas and et.al., 2021). With
implementing new ways to deal various challenges result in increased production of firm and
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more target achievement. Addition of new ways or techniques also aids firms in gaining a
competitive advantage over competitors.
With the change in personnel results in negative impacts including
Loss of Experiences: One of the downfall that comes with transferring an employee with
loss of experiences. As the employee exchanged may not posses such experiences as the last one
did so may made it hard for him to cope up with other members and new environment.
Sometimes need to train new employee according to new working environments.
Affects productivity: Another negative impact may followed is productivity issues, with
new transferred worker does not posses such high experiences or techniques may cause in
productivity loss (Issahaku, Abu and Nkegbe, 2018). If the new worker isn't able to deliver the
best out of him and not being able to overcome challenges that company is facing may results in
affected production of firm. As with such case company tends to deliver or produce less units
and results in less sales generation.
International transfer provides an impact on organization also with some varied results
for organisation to follow and improvements.
New Markets opportunities: When the transferred employee takes place in firm may
aids in organization to get more awareness about new market to enter. As the person with its
knowledge about the market aids company to disperse or expand in new markets and grab more
of revenue from that. With entering into new markets company may acquire all the available
resources present and converting into monopoly for profit gaining and maximizing.
Finding new Trends: Another positive impact by joining of international assignee is by
providing firms with new market trends (Zhao, Liu and Zhang, 2018). Usage of market analysis
and knowing about trends may also improvements for the firm. New market trends knowledge
gives an advantage about what is going on in today's trends, what customer demands and what
are their taste and preferences on which firm may grab opportunities. More about what customer
choosing to shop with online sites or by offline way of going in and checking about product.
Getting less retention rate in company: With new employee in enterprise aiding in
improving retention rate for the firm with motivating and providing existing workers with new
techniques (Siddiqui and Bisaria, 2018). This may lead to resolving issues in between workers of
company ends up in gaining of less retention of workers. This may leads in increasing
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productivity and working of company and results in dynamic company growth in international
market.
Develop understanding about local people needs in new nation: Another major impact
provides by new employee by deriving about what local people need in the domestic market
(Takdir, Syah and Anindita, 2020). When firm tends to enter into new markets it's important to
know about local or domestic people requirements for producing or providing customers with
their local requirements. Hence, it may result in gaining or acquiring more customer base and
more even more sales revenue with a competitive advantage over other companies.
By referring with 'Hofstede culture model' when an assignee being international transfer
may tends to face various negative impacts by the nationality (Hofstede’s Cultural Dimensions
Theory. 2021). As different nations tends to have different cultural differences from each
another, as a results in variations and impact on the employee. Additionally, people foster or
benefits personal achievements more than any other. Many of countries follows individualism
dimensions, as their main route for working. They believe in working as individual brings in
more productivity and hinderer free working whereas some nationality believes in the
collectivism, believing in working as a team or group may leads to success or betterment for all.
So transferred worker find it very typical to adapt into new cultures and believes.
Another negatively impact derives when some countries focus on preferring men for
working as they believe in masculinity leads to more and efficient working (Shin, Chotiyaputta
and Zaid, 2022). while just opposite some nations only prefer femininity or working women over
others for improving effectiveness. Uncertainty avoidance index also puts negative impact on
newly transferred worker culture founds it quite hard describes about different countries deals
with different possible situations. As various nation ways of dealing may affect in the end result,
not all people get on same results for solving an issue. It also identifies that some culture
differences people meant to stay comfortable being under an issue and don't made efforts to
resolve it.
Power Distance Index also puts negative impact as some industries under some
economies does not accept the distance of power and authority (Minkov and et.al., 2018). Simply
means individuals or people don't like to get orders to work for as some societal or cultural
differences believes power for being superior to any other works.
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CONCLUSION
From the above report it has been concluded that, when a business enterprise expends
into various new markets of different economies various measures were taken into affecting
expatriation also, for transferring of managers into international firms. Expatriate is an important
term in the modern time to gain more beneficial and greater competitive advantage. As requires
in aiding with increasing effectiveness and efficiency, gaining competitive advantage and
relocation benefits. Also for improving accommodation benefits and company assessment. The
company has been taken some corrective measures to solve issues in the working. Being enlarge
customer base which cant be possible without gaining or taking some specific strategic actions.
The report will showcase about various expatriation and the different forces deriving it. Analysis
also shows about the different forms of expatriations that needed by Human Resource
department for consideration. Lastly the study delivers the critically evaluation of success of
international transfer of an assignee from both the view as a individual and as well as
organization views and impacts. With knowing about various factors impacting the transferred
employee and culture for working in and support foreign operations in same and international
company. Getting to know more about purpose of organisational development with filling the
skills gap for betterment. Usage of Inpartriates under HRM to develop new skills for successful
evaluation of working and the various HRM skills projects to improve the overall positioning of
firm. In addition, of adjusting the cross-cultural defects on work stress and also about the
employees job involvement in high earning for firms. Moreover to increase the target country's
local talent pool, matching operations of company with standards of homer market requirement.
Decreasing high burnout rate of workers and reducing legal risks for being employees with
superior managerial skills and being able to work with limited resources of company.
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REFERENCES
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Charbonneau, E.F., Camiré, M. and Lemyre, P.N., 2020. Motives for and Experiences of
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Eden, L. and Byrnes, W., 2018. Transfer pricing and state aid: the unintended consequences of
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smallholder maize farmers affect productivity in Ghana?. Journal of African Business.
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Shin, D., Chotiyaputta, V. and Zaid, B., 2022. The effects of cultural dimensions on algorithmic
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van Voorst, R., 2019. Praxis and paradigms of local and expatriate workers in ‘Aidland’. Third
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Zhang, Y. and et.al., 2020. Are culturally intelligent professionals more committed to
organizations? Examining Chinese expatriation in Belt & Road Countries. Asia Pacific
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Zhao, L., Liu, S. and Zhang, W., 2018. New trends in internal migration in China: Profiles of the
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Zheng, Y. and Smith, C., 2019. Tiered expatriation: A social relations approach to staffing
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Online
Five Types of Expats You Will Meet Abroad. 2021. [Online]. Available Through:
<https://www.spendlifetraveling.com/five-types-of-expats-you-will-meet-abroad/>
Hofstede’s Cultural Dimensions Theory. 2021. [Online]. Available
Through:<https://corporatefinanceinstitute.com/resources/knowledge/other/hofstedes-
cultural-dimensions-theory/>
The Importance of Expatriates in Organizations. 2017. [Online]. Available Through:
<https://bizfluent.com/info-12072421-importance-expatriates-organizations.html>
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