International HRM Report: Factors and Ways to Improve Expatriates

This report delves into the intricacies of International Human Resource Management (IHRM), focusing on the practices of multinational organizations (MNCs), with HSBC as a case study. It defines IHRM, exploring its core concepts and the role of expatriates in international business operations. The repor...Read More

INTERNATIONAL HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
MULTINATIONAL ORGANISATION.........................................................................................1
CONCEPT OF INTERNATIONAL HRM......................................................................................2
CONCEPT OF INTERNATIONAL EXPATRIATE......................................................................4
FACTORS OF INTERNATIONAL ORGANISATION.................................................................4
IMPROVES THE WAYS OF INTERNATIONAL EXPATRIATE..............................................5
CONCLUSION................................................................................................................................6
REFRENCES ..................................................................................................................................7

INTRODUCTION
International human resource management refers to the process of allocating, procuring
and using human resources in an efficient manner. Further, in this, manager of organization
needs to integrate with the plans and policies to subsidiaries which are situated in different
countries so as to achieve the goals of company (Armstrong and Taylor, 2014). In the report,
HSBC is considered for making further study. It is a multinational company which is highly
efficient in managing the human resources in an efficient manner. Along with that, factors are
determined which must be considered by organization to attain success in the market.
MULTINATIONAL ORGANISATION
A multinational organization is a corporation which is dealing in more than one countries
other than its home country. Further, if company is having international existence than it means
that the organization is serving its products and services in various countries. Thus, it has been
evaluated that UK is one of the nations which is participating in Multinational Corporation.
Moreover, it has been studied that with the globalisation, all countries are taking efforts for their
engagement in international business. Following are the major benefits which can be attained by
this: Increase the market share – If company needs to capture the whole market then it
becomes important for them to export their respective products and services all over the
world. Thus, for this, it is important to bring the level of company at the saturation point
in local economy and then taking measures to expand their business in different
countries. Secure the cheaper labour – Producing products and services in other developing
countries provide assistance to companies to acquire cheap land and the labour. This will
assist them in expanding their business in different countries and increase market share as
well. Job creation- It has been evaluated that when companies set up their business in different
countries they provide with employment opportunities to many local people (Nickson,
2013).
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 Government Grants – From the analysis, it has been found that in the time period of 80s
in UK, there were many corporations that were attracted towards the nation for doing
investment because government there provided various offers and money to open the
industry in that economy (Budhwar and Debrah, 2013).
By evaluating the benefits of adopting international marketing in UK, HSBC started to
serve their services globally. This has helped them to provide large number of jobs to the
unemployed people which has ultimately enhanced the economy of country which leads to its
development. Major advantage of it is to acquire the information about world which assist them
to improve their skill. Thus, from this, economic scale has attained high benefits from these types
of businesses. By using new technical equipment, it has helped HSBC company to serve the
services in an efficient manner. With number of advantages of Multinational Corporation, it is
also having some disadvantages. Further, the industry has to overlook the responsibilities of
social and environmental factors. At times, it develops the situation when people who are from
domestic country have to work at lower salary because they have to shift to other companies. In
addition to this, political involvement also highly affects the corporation.
HSBC is one of the biggest banking companies which is working in more the 120
countries. It is making an efficient relationship with clients as well as with the employees. In 20th
century, this company was efficient enough to reach the heights at a higher pace which leads to
increase in their financial services. But in 21st century, company started trying to focus on
growing business in other sectors as well (Dickmann, Brewster and Sparrow, 2016).
CONCEPT OF INTERNATIONAL HRM
Concept of international human resource management is formulated for the development
of people in order to manage foreign organizational context. This process assist individuals to
enhance with their career as per the international human resource management. Present report is
prepared with a purpose to enlighten the impact of international HRM and issues related with the
same. However, organizational culture refers to the policies and ideologies which are being
followed by the firm for formation of a positive culture in it. This concept is not only applicable
for the national level but also, for the international level. However, international HRM is
required to be understood because in this globalised era, companies do not work in limited
boundaries (Jackson, Schuler and Jiang, 2014). But they prefer to expand their operations

outside the country and those companies are known as multinational corporations. When the
operations are done internationally, organization needs to focus on their operations and on host
country as well. At this level, the major issue raised is with regard to cultural differences. This is
mainly faced by consultancy firms like Deloitt, IBM etc. as they operate at international level.
For an instance, stated companies want skilled and talented employees which they can hire from
developing countries. In order to provide training, expatriates are needed to go and guide the
candidates of host country. As a result, they may face certain issues like cultural and language
differences along with changed policies (Armstrong and Taylor, 2014).
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(Change the figure; it is not clear)
In order to overcome this problem, Hofstede organizatiion cultural model is being adopted. This
model is mainly used for making the evaluation of cultural differences. According to this model,
six dimensions are purely analysed such as power distance index, individualism versus
collectivism, masculinity versus femininity, uncertainty avoidance index, long term orientation
versus short term and indulgence versus restraints (Cavusgil and et.al., 2014). As a result, MNC's
will be able to formulate the policies in a way which can match up with the human resources and
culture of host country. Therefore, while operating at international level, organizations are
needed to adopt this model so that cross culture can be effectively understood (Bratton and Gold,
2012).
CONCEPT OF INTERNATIONAL EXPATRIATE
Expatriate is the person who on a regular basis immigrant in different countries. In the
end of the 20th century global market has developed with a new trend of expatiates. It becomes
difficult to measure the shift of the expatiates in the available figures. With the increase in
population of the world, the organizations are paying greater attention to human resource
management. The advantages of expatiates employees is to make the close relationship and
control the subsidiaries of international. This also provides the extra supervision and training in
such way so the employees can do expertise in the different countries. It plays crucial function in
the development of the industries. The disadvantage of the expatiates is that at times government
make interference and apply the restriction which creates with greater problem. Moreover, in the
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Illustration 1: Hofstede model
(Source: Bratton and Gold, 2012)

international corporation the expatiates makes the inability in adjustment. When the assignment
is not complete by the expatriate and reign the job it is the main disadvantages of the
international industry (Naidu and Chand, 2014).
FACTORS OF INTERNATIONAL ORGANISATION
There are several factors which helps in increasing the international expatriate. There are
several factors which have a greater impact on the organisation. Thus while taking the decisions
it becomes important to consider the implications which may impact in HSBC. The following are
the several factors:
 Political Factors – It have a greater influence by the political factors which are concerned
by the government of the countries. The laws of the different countries may impact in
different manners like in tariff policy, technical, quotas etc. In the international business
the political factors is an important aspect which have to be considered while doing
business all across the world. For example, HSBC is doing the business in US so the
country regulation is to provide the services on high standard. Sometimes frequent
change in the politics highly affects the business. If the organisation wants to get
successful in international expatriate than they need to follow the regulation of the
respective countries (Turchick Hakak and Al Ariss, 2013).
 Economical Factors – It is another important factor which needs to be considered while
doing the business in different nations. This factor influences the demand level of the
public which have an effect in the product and services of the countries. It depend on the
economic growth of the company as it may be high or it may be low. For example one
country is having the high economic rate and other country having low rate than this
makes difficult to develop a plan in the international business. For making it successful ,
the expatriate try to consider the economic rate of other countries in which the company
is doing business and then make activities according to the economic rate.
 Technological Factors – HSBC a multinational corporation is highly affected by the
technology. In the modern period, technological advancement is important because it
assist in determining the prosperity of the international company. Less technological
equipments will result in slow production as compared to its competitors which
ultimately decreases its reputation in the market. Adoption of new technology improve
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the operation of the product and services and helps in increasing the growth of the
organisation.
 Social Factors – One of the main factor which have a negative influence to the
international HRM. Social factor include the demographic factors which have a greater
impact on decision making of the people. The attitude of the people and different culture
has a high influence in the demand level. For increasing the success, international
expatriate try to serve the product and services according to the culture of the country
( AnKowalski, Loretto and Redman, 2015).
IMPROVES THE WAYS OF INTERNATIONAL EXPATRIATE
International business is been started when the company start doing the business in the
host countries. There are six ways to improve the expatriate:
1. Pre-program and exploration – This is the first task to understand the host country's
culture, goals and behaviour in the session of training and experience to the family or
expatriate. To improve the trade, it is crucial keep a focus on the goals. The host country
take into consideration the tendencies of family's culture. In addition, training should be
properly given and with the help of new technology like online training will assist the
people of the host countries (Bersin, 2015).
2. Expatiate program – In this stage, they develop with the skills and knowledge about the
business, different nation's cultural, values and the living style of the people. By
understanding the demographic factors it assist them to reduce the misunderstandings
between the cultures and the servings. Trainings play a significant role if they are been
provided in a proper manner and will have positive impact on the company (Jackson,
Schuler and Jiang, 2014).
3. Briefing on manager and team cultural – This focus on the norms and cultural values in
the host countries. This is an important stage for the manger as they make understand
about the work to the assignee. The manager try to identify difference in the
communication and working style and try to improve the communication ways in the
different countries.
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4. Project allotment – The project alignment is done on the basis of critical information
with host manager and assignee. They discuss with the barriers like the cultural
behaviour and many more which affects the success of business. After discussing all the
barriers by giving the time, strategies and milestones they make proper improvement for
them (Storey, 2014).
5. Coaching in the country – In this proper training is given to the assignee before he went
to the host country. HSBC multinational company should appoint the coach which
monitor the assignee and gives effective training. During the time of expatriate
assignment the coach capture the experience, interaction between others and notice on
virtual meetings of the assignee and evaluate on that basis. By monitoring properly to the
assignees it will help to improves the business work.
6. Management process - Management is very important element to improve the process of
international HRM. It is also crucial to provide the knowledge which further solve the
issues, repetitive barriers in specific period of time. This will lead to increase the skills
and make development by performing with best practices (Guo and Al Ariss, 2015).
CONCLUSION
From the above report it can be concluded that, HSBC need to consider several factors
which have a positive as well as negative impact on the success of the company. Thus, by
considering these factors it will assist in attaining a greater market share in the industry. Further,
the elements are been determined which helps to improve the ways involved in international
expatriate.
REFRENCES
Books and Journal
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Budhwar, P. S. and Debrah, Y. A. eds., 2013. Human resource management in developing
countries. Routledge.
Dickmann, M., Brewster, C. and Sparrow, P. eds., 2016. International Human Resource
Management: Contemporary HR Issues in Europe. Routledge.
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Guo, C. and Al Ariss, A., 2015. Human resource management of international migrants: Current
theories and future research. The International Journal of Human Resource Management.
26(10). pp.1287-1297.
Jackson, S. E., Schuler, R. S. and Jiang, K., 2014. An aspirational framework for strategic human
resource management. The Academy of Management Annals. 8(1). pp.1-56.
Kowalski, T., Loretto, W. and Redman, T., 2015. Special Issue of International Journal of
Human Resource Management: Well-being and HRM in the changing workplace. The
International Journal of Human Resource Management. 26(1). pp.123-126.
Naidu, S. and Chand, A., 2014. International human resource management practices adopted by
multinational corporations in the hotel sector of Fiji.International Journal of Management
and Network Economics. 3(2). pp.156-168.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Turchick Hakak, L. and Al Ariss, A., 2013. Vulnerable work and international migrants: A
relational human resource management perspective. The International Journal of Human
Resource Management. 24(22). pp.4116-4131.
Online
Bersin, J., 2015. Becoming irresistible: A new model for employee engagement. [Online].
Available through:
<https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-
strategies.html>. [Accessed on 9th January 2017].
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