International Human Resource Management: Expatriation Issues Report

This report delves into the contemporary issues within International Human Resource Management (IHRM), with a specific focus on sustainable expatriation management. It explores how Multinational Enterprises (MNEs) develop and implement expatriation strategies, highlighting their impact on internationalization. The report reviews literature on the importance of expatriates in connecting host companies with subsidiaries and the challenges faced by HR departments in selecting, training, and managing employees for international assignments. Key topics include the impact of globalization, cultural diversity, the importance of pre-departure training, cross-cultural training, and language skills. The report also examines the reasons why sustainable expatriation management is critical for internationalization, including market knowledge acquisition, instilling company culture, and the transfer of information. The analysis underscores the significance of addressing cultural differences, providing adequate support, and implementing effective training programs to ensure the success of expatriate assignments and the overall success of MNEs in the global market.

Contemporary Issues in
International Human
Resource

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW ...............................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCE ..................................................................................................................................8

INTRODUCTION
Organisational success is depend upon the Human Resource or if any business wanted to
grow in the international market then multinational company have to be depended on
international human resource management. Managers of the company have responsibility to
manage wide range of employees1. HR is the person who is responsible for the whole task,
additional specification of operations of their department. Manager or HR team are those persons
who responsible for the international human resource management. This research focus on
Sustainable Expatriation Management, how MNEs develop this and the crucial impact for their
internationalization. International human resource management help the individual to live in
another country as a citizenship and they also have relinquished citizenship in their home country
too.
LITERATURE REVIEW
Explain Sustainable Expatriation Management according to their point of view
In the global market, competition will increase rapidly and for this concern most of the
organisation transfer their employees to another countries. So they can carry their technical
ability, knowledge and skills in the job of subsidiary company which is in abroad. These people
called Expatriate and for the selection of these people HR department required to follow the
process. So HR manager have to develop plan for the selection or training of an employee. At the
time of performing their duty HR team face the lots of issues and influence the success of MNEs.
Globalisation is more popular in the current market trend and it is not limited in single location
they explore new location with the new business. Organisation expand their operational
functions which increase the competitiveness in the global market. Now MNEs consider the
human resource management for the competitive advantage2. So mangers often engage with the
internal employees and send them in their subsidiaries for the achievement of business goals &
objectives.
1 Albrecht, Simon L., Arnold B. Bakker, Jamie A. Gruman, William H. Macey, and Alan
M. Saks. "Employee engagement, human resource management practices and
competitive advantage: An integrated approach." Journal of Organizational
Effectiveness: People and Performance 2, no. 1 (2015): 7-35.
2 Awais Bhatti, Muhammad, Mohamed Mohamed Battour, and Ahmed Rageh Ismail.
"Expatriates adjustment and job performance: an examination of individual and
organizational factors." International Journal of Productivity and Performance
Management 62, no. 7 (2013): 694-717.
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According to Adler and Ghadar (2019), expatriates plays important role in the each
stage of internationalization. They have responsibility to connect their host company with the
subsidiaries and it will depend upon the global strategy of the business. Organisation face the lots
of issues regarding policies and practices. Such as staffing policy, it include the selection and
training process of employees of the parent company is the biggest issue in HRM. So expatriate
management is the concern in the International Human Resources Management (IHRM) which
influence the success of multinational enterprises. MNEs focus on HRM sustainability for the
sustaining in international business operations. It will describe the organisational ability,
achievement, goals, economic value integrating social or environmental opportunities in the
trading strategies for the long term. Some time transfer of employees in the abroad fail because
they are not so flexible or adaptable in the international life3. Expatriate face the issues or
variation because of the new location, different culture and language conflict. In addition, there
are various barriers regarding poor communication, lack or awareness, poor interpretation skills
and have less ability to evaluate. Because of that issues and barriers expatriate return in their
home country earlier. So due to this reason it will become the top concern area for the
international HR manager.
As per Hofstede (2019), studies, cultural diversity is the biggest issues so HR manager
will try to understand and maintain the cultural diversity for their employees. It include the
working style with the new people, by using technology, work in the different location which
will provide the cultural knowledge and different background. For example: - if any organisation
hire a new employee from Germany, so that employee have different ideas or culture knowledge
which help to manager employees by using various technology on their personal experience.
Best way to make successful expatriate is to freely accept the new style, culture, communication,
technology and other skills. Some case candidate's family requirement also become a reason for
the failure of expatriate4. This factor heavily influence the international assignment because it
will become a barrier for the IHRM. Organisation have to build strategies in respect of
identifying household role with the expatriate. Because they are those person who motivate
employees to perform well in the new location.
3 Cerdin, Jean-Luc. "Motivation of self-initiated expatriates." In Self-initiated
expatriation, pp. 73-88. Routledge, 2012.
4 Chelladurai, Packianathan, and Shannon Kerwin. Human resource management in sport
and recreation. Human Kinetics, 2018.
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Schein's (2019), state that culture have 3 level which include artefacts, values or
underlying assumption. These cultural context impact the HRM practices such as recruitment &
selection, training & development, compensation and task distribution. Recruitment & selection
impact the society through in group collectivism and individual achievement help the HR
manager to compare selection criteria. Gender egalitarianism is high in Training & development
because woman get the same change to enhance their career ans same as gender egalitarianism is
low in case of female manager. High uncertainty avoidance in case of compensation because
employees prefer fixed benefits rather taking any risk for the more benefits. Some of the
employees take high risk due to earn more income and it is applicable on performance base
work. High on collectivism motivate the team work at the time or distributing task or work. High
on individualism will benefit for the responsible work system5. HR of the organisation provide
various professional training & development program for the employees. It will provide on the
job training which enhance the skill of employees which is beneficial for the organisation to
expand their business globally. HR manager offer different language classes which help the
employees to attend meetings, global seminars and conferences. These training provide
professional development to their employees make them capable and provide skills in global
marketing, finance trend or international business development.
Process of developing Sustainable Expatriation Management by MNEs
Internation organisation have to adopt different concepts and knowledge in the range of
human resource functions such as recruitment & selection, training & development etc. In the
organisation, pre-departure training is the initial concern for the employees and ensure that they
will perform effectively and become successful after selecting candidate6. Expatriate required
regular training due to lack of suitable trained staff in the new or host location. Main purpose or
aim of the organisation is to improve current working skills and behaviour. It will help the
expatriate to adjust in on-assignment performance. Cross cultural training help the employees to
increase cross-cultural life, develop ability to adopt different culture and build global mindset.
Organisation provide the various training programs such as cultural awareness, language
knowledge, primary visit and regular practices matter a lot. Because international assignment is
5 Chen, Lung-chu. An introduction to contemporary international law: a policy-oriented
perspective. Oxford University Press, 2014.
6 Haslberger, Arno, Chris Brewster, and Thomas Hippler. "The dimensions of expatriate
adjustment." Human Resource Management 52, no. 3 (2013): 333-351.
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more complex in comparison to domestic task due to this reason employees are not comfortable
or isolated to work on new location.
According to kluckhohn kroeber () develop intellectual or moral faculties for the
training and it will help the employees to improve their professional personality. Limited
knowledge of other country will create difficulty in the abroad assignment. Cultural awareness
program is important as well as necessary for the selected candidates so they behave according to
the host culture and follow their models. Advantage of this training is to improve skill set for the
foreign assignment and it also improve the performance which will help to connect with local
people and make them able to take effective or correct decision7. Multinational enterprises
(MNEs) provide proper learning models which help the expatriate to become aware about the
host country. It's culture, values, ethics, technology or behaviour of an individual. Because of
that reason it is important for the selected candidate to preliminary visit the host location and is
useful at the time of orientation of international employees. Prior visit will help the employee to
understand the market trends and it will support the knowledge due to pre-departure training.
Visit of the host nation will increase the confidence of expatriate to become familiar with the
host countries culture, new life & education. MNEs provide the prior visit to expatriate or it's
spouse so they can mutually decide that they have to accept that international assignment.
Training & development program connect the employee with host country's culture and make
them aware about their lifestyle or communities and it will positively affect the expatriate. These
training & development influence the employee and make them to adjust in the new location.
Language training also beneficial for the employee as well as for organisation to make them
comfortable & confidante in the new country8. Every country represent their culture through
their language if the expatriate is aware about local language of host country then it will increase
the potential and decrease the chances of confusion or mistake. So basically current MNEs
provide the different training & development program to selected candidates. Majorly cultural
awareness, language knowledge or prior visit with spouse will help to make this program
successful. But most of the time lack of language knowledge will become a barrier for the
multinational organisation. Because of that issue HRM need to select suitable candidate who
7 Hollifield, James, Philip L. Martin, and Pia Orrenius, eds. Controlling immigration: A
global perspective. Stanford University Press, 2014.
8 Koveshnikov, Alexei, Heidi Wechtler, and Cecile Dejoux. "Cross-cultural adjustment of
expatriates: The role of emotional intelligence and gender." Journal of World
Business49, no. 3 (2014): 362-371.
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know the English language. Because it is the most common language which it is most popular
and primary used language in the various countries. For example Germany, Britain, USA,
Canada, UK etc. these are some popular countries who have English as their local language. So it
is important for the HR manager to choose those candidate who is professionally know the
English language.
In some counties language skills are not so much important for the expatriate but have
knowledge about foreign language is beneficial for the employee or for the organisation. Which
will help the expatriate to perform their task with the full of their potential. According to some
researcher, one of the biggest issue in IHRM is incapable support of human resource. Such as
negative attitude toward host country9. So it is important for the HRM to provide proper support
to their expatriate in the initial days because that time employees are unfamiliar with the culture,
location, idea or job. At that time expatriate required some important advice or information from
the HR team of their organisation. Now most of the MNEs will take suggestion or advise from
the experts for the valuable contribution which is further beneficial for the business and help
them to achieve their goals & objectives.
Reasons of Sustainable Expatriation Management important for the internationalization
Sustainable Expatriation Management is the important for the organisation because
expatriate work hard for the business regarding their short or long term project. It will help the
company to expand their operational functions in the new location. For this organisation need to
hire professional persons who can develop the skills of selected candidates and make them
capable or develop ability to success in global market. There are some of reason why
multinational enterprises send their expatriate in the other country. Send their employees in the
host country will increase the knowledge of local market and it will help the organisation to
expand their business and identify the taste & preference of consumers10. It will also helps in
identify market condition, culture and apply the business practices for the effective results.
Understanding of local market & awareness will reduce the risk and help them to avoid various
mistake at the time of performing their duty because if it is not happen properly then it will
9 Koveshnikov, Alexei, Heidi Wechtler, and Cecile Dejoux. "Cross-cultural adjustment of
expatriates: The role of emotional intelligence and gender." Journal of World
Business49, no. 3 (2014): 362-371.
10 Nankervis, Alan R., Marian Baird, Jane Coffey, and John Shields. Human resource
management: strategy and practice. Cengage AU, 2016.
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reduce the chances success in the market. Another reason is Instill company culture which
means gradually fix the different idea, feeling, culture or principle in the employee who send to
an another location. Expatriate are those who work closely with the subsidiaries company,
distribution, joint partners and agents. They will ensure that expatriate will understand the
working culture, values and standards11. Multinational enterprises provide development programs
so expatriate can understand the different culture and those factors which work with the local
business practices. Through instilling parent organisational culture or practices selected
candidate will ensure that customer get the high standard services in the whole export region.
Another reason is that expatriate transfer the information to their overseas partner and
their parent company. If any organisation set a manufacturing unit then expatriate provide the
different practices, standards regarding product quality and use of different techniques in the
production. Expatriate also provide the information regarding such as use of new technology will
help the organisation to make them survive and able to achieve their business goals & objectives.
It happen because expatriate work with the local distributors or agents which provide the market
knowledge and help the company to develop market program which improve market penetration
strategies. In addition, internationalisation will help to develop management talent through
enhance their relevant skills & ability12. Expatriate learn the different organisational culture so
they recognize and understand the diversification of local market in the various territories. It will
provide the broad perspective of marketing which further helps in building marketing strategies
for the completion of their task and achieve their goals & objectives. Expatriate develop the
employees personal skills such as interpersonal, leadership, intellectual or collaboration with the
other team mates. It will also improve the management quality of employee through expatriate
which help the business to enhance their skills for the success in the global market.
Role of expatriate will change because before that it was an normal employee for the
organisation but after transferring to another country it will become a important part of the
organisation. Expatriate provide their important contribution to the business with the help of
developing marketing export and role of expatriate also changed. With the help of international
industrial relation multinational enterprises identify the local talent which fulfil the need of
11 Nankervis, Alan R., Marian Baird, Jane Coffey, and John Shields. Human resource
management: strategy and practice. Cengage AU, 2016.
12 Takeuchi, Riki, and Jieying Chen. "The impact of international experiences for
expatriates’ cross-cultural adjustment: A theoretical review and a
critique." Organizational Psychology Review 3, no. 3 (2013): 248-290.
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individual market. MNEs try to develop local people who will take responsibilities rather than
sending more expatriate to run local operational functions13. HR functions help the business to
train their expatriate and they also ensure that program will not fail because of the some issues.
MNEs follow the various strategies which help the organisation as well as expatriate to perform
their task well and make them able to achieve success in the global market. By adopting
international industrial relations strategies such as various practices which satisfy their unisons
demands and deal with the employee through employer associate not at firm level.
CONCLUSION
From the above discussion, it has been concluded that every organisation required
effective human resource management because it will help the company to expand their business
globally. With the help of HR functions MNEs provide proper training & development program
to their selected candidate who going to send in host location to identify local market condition
and the opportunities. Expatriate is the important part of the organisation because it will provide
the information which help the company to perform globally. In addition, HRM play important
role through providing various development program and different training regarding required
skill set.
13 Yao, C., 2014. The impact of cultural dimensions on Chinese expatriates' career
capital. The International Journal of Human Resource Management, 25(5), pp.609-630.
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REFERENCE
Books & Journals
Online
Important role of HRM. 2019. [Online]. Available through:
<https://snowstorm/stable/155560?sew=1#page_scan_tab_contents>
Cultural Dimensions Theory. 2019. [Online]. Available through:
<https://narrow-mindedness/pages/article/newline_66.html>
Organisational Culture. 2019. [Online], Available through:
<https://stage-management/Edgar-schein-model-theory.html>
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