International Management: Expatriation, Failure, and HR Implications

This report delves into the strategic use of expatriation within a globalized economy, specifically using Cadbury as a case study. It evaluates the reasons behind Cadbury's expatriation practices, exploring how the company leverages international assignments to establish a global presence and integrate its HR policies with its business objectives. The report examines the importance of Strategic Human Resource Management (SHRM) in expatriation, highlighting programs like "managing for value" and "working better together" and how these are used to maximize employee capabilities, provide training, and manage risks. It further analyzes the causes of expatriate failure, such as family issues and cultural differences, and discusses the implications for HR directors, offering recommendations to improve expatriate success through language fluency, psychological assessments, training, and mentorship. The conclusion emphasizes the significant impact of expatriation on global business and career development.

International management

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Evaluate why Expatriation used in a globalised economy and causes of expatriate failure,
implications of findings for HR Director...............................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Good Human Resource management in companies that are doing business globally needs
cultural awareness and quality to response quickly in dynamic situation. Professionals that
handle human resource do all recruiting, interviewing, hiring, training the employees and explain
to them all the requirements for achieving the business goals (Hult, Hair Jr and et. al., 2018). The
HRM set the policies, conditions, and procedures for surety of fair safe and productive work
environment. International management of an individual requires motivated and inspired
employees to work in collaboration even when they don’t reside in same working location. In
this report below we will discuss about why expatriation is widely used by Cadbury in a
globalized economy and reason of expatriation failure.
Main body
Evaluate why Expatriation used in a globalised economy and causes of expatriate failure,
implications of findings for HR Director
Expatriation in Cadbury
Expatriation is sending employees of an organization to work in other country with
assigned work on long or short term business projects. These employees help organization to
establish working in foreign places, start overseas markets and utilize skills and knowledge to
co-operate with their company’s business partners (Cadbury's employees want more
international postings, 2021). The experience gained by employees helps the organization to
develop the basic structure of management skills and their capability to achieve more in
globalized market. Cadbury being a confectionery and beverage company, cadbury knew the
market value of confectionery business and thus separate out the operation of these two
industries. Staying at the top of confectionery market for Years Company globalized its
confectionery items especially chocolate industry, while the beverage industry was localized till
U.S. as Dr. Pepper Snapple Group , Inc. Cadbury has integrate its HR policies and practices with
overall business to help them achieve its globalized goal. The company uses various HRM
strategic programmed like “managing for value” which aim to raise the understanding of
employees about values that can be profitable to company (Mathews and et. al., 2016). The other
programs provided by company are “working better together” and “growing our people”. These
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strategies are to maximize potentials, train employees, manage HR risks and evaluate
performance.
Cadbury has posting its mid-level employees to outer countries as by pay off a long run
through which suitable range of benefit is perceived in terms of gaining sustained profit of
investment. It is processed to advance the scaling and with this organized sale is attained as by
advancing possibility with having an expatriate. It advance prominent growth that assist and
drive higher success and development so that possibility to perceived higher competitive
advancement is developed in progressive manner.
Importance of SHRM in expatriation
The concept of strategic human resource management is bought in because of the
growing pressure of alteration. The globalization of company means requirement of more
employees that can serve in the expanded operation of company or replace the expat. The
strategic methods help in managing employee’s relation (Björk, 2017). The SHRM actually put
impacts on integration of learning and organization implying learning is based on the
consideration of organization. The other important role is to make employees learn about the
way to improvise their skills and keep updating their knowledge, which will be very helpful for
work output given by them. Cadbury realizes that the employee’s skills should get analyzed and
motivates each and every employee by some goals which help them to perform better every time
which they call capability analysis. Some of the strategies of Cadbury are mentioned below:
Maximizing capabilities
One of the most important employees at Cadbury is its manager and company knows
that. So in order to optimize the skills and role of manager, the company regulates many strategic
programs as mentioned above also. One of these programs is Building Strategic Capabilities
(BSC). This programme was developed and applied so that the potential of company’s manager
can be maximized.
Training
Training is the important aspect of company’s SHRM which gives surety that all
employees posses the equal approach to training opportunity provided by company. Cadbury
provide a training programmed to improve the compatibility of its employees (Pezzutto and et.
al., 2018). The company started Passion for People training programmed for people
management. This program gives the strategic way to manage people and company’s goal is to
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provide such management approach to their employees. The company not only provides the
training opportunity to new employees but also offer a regular updates on the current existing
employees.
Risk management
The company has valid HR policies especially in the recruitment, selection and hiring of
employees. Other then these, work issues of employees are also checked by the company’s HR
rules and regulation (Zhong and et. al., 2016). The company is committed to select people on the
basis of their abilities and capabilities. This is company’s strategy to optimize the skills and
experience possessed by employees and then helps them find out their other skills.
Expatriate are the employees that re-locate their work at different countries as it has
positive impact over the essential role that assist and assure to induce higher relevancy is
adequate manner. The corporate culture and its evolvement both get addressed as per
involvement of different basis such as demographic, working norms, industry forces as well as
different factors. The organizational culture reflects different stages of business and affects the
working style as well in which all the employees maintain focus towards conservative, team
driven, collaborative and encompassed host towards other characteristic.
Globalization and expatriation
Expatriates are used for making and maintaining the link in other countries, set up an
operation of company’s interests in other country which increase the globalization of company.
The use of expatriates is rising continuously with the growth and expansion of company in
international business. Due to the effect of globalization the numbers of expatriates are rising in
many developed and developing countries (Jean and et. al., 2016). Expatriation is a serious step
for both company and employees and to play this role effectively companies need the
international human resource management. The company leads its way in people management
and it is built on selfless belief which makes its people a priority. The points below describe the
role of human resource on expatriation:
Recruitment and Selection
This is the most important function of HR management. Recruitment is finding and
picking up potential candidates. Selection is to evaluate the candidates and assign employees for
particular job. HRM assure that candidates adapt to the working environment. HR creates
opportunity for outside people when the company gets shortage of employees. The HRM is
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responsible to justify the job role by managing the business efficiently. The main benefits are to
select experienced person for trade organization, the candidate most suited and ready for
expatriation when needed. In this process candidates are interviewed by manager of company for
various business operations (Oey and et. al., 2016). Beside all these factors many company face
issues in international HRM, like certain accusation of discrimination among candidates while
recruiting them and sometimes there are complaints to companies about recruiting candidates
like gender difference.
Providing ongoing Training
Human resource management that works for multinational companies maintain
productive surroundings by ensuring that employee from divers location has the capability and
skills to work together. The HRM arranges the training course for expatriates to get them work
properly. And they also ensure that company follows and sticks to all government regulation.
Frosting Global Collaboration
As Cadbury becomes international the human resource gets all rounder. Their focus shifts
more on ensuring that an employee works effectively as a team (Coviello, Jones and McDougall-
Covin, 2015)). They keep in mind about competitive advantages, profits, and surviving in tough
time of adverse financial situation. It may seems like they work on recruiting employees, manage
benefits and handle disciplinary but in reality HRM professionals deals health care costs,
decreasing employee attrition, and participate in company. Beside these the big difference in
work of international human resource with the domestic HR is that IHRM has to address
different countries labour laws. And also be sensitive towards cultural issues as something
normal for one may offend other.
Building and Managing Teams
IHR professionals needs to ensure that various teams will work together, by organizing
team building workshops, promotes and accepts diverse culture and motivates employees to
work for strategic goals they helps the company to build a strong compatible team (Hannibal and
Knight, 2018). Understanding that some country’s individual plays big role than other HR
professional can aware about how team can work effectively all across the globe and maintain
profitability of company.
Working with Managers
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In initial days HR teams worked on hiring personnel and other tasks without the input of
department managers. As companies globalize human resource professionals get the role of
business partners to interview and direct the new employees to the work place, and manager of
all companies take interview before selecting any candidate (Meyer and Peng, 2016). So human
resource must work in coop ration with mangers on production lines.
Examining the cause of expatriate failure
 When an employee starts an international assignment there are many opposing situations
that appears during the posting which in result could obstruct completion of expat and
growth of business in globalized market. As the company cannot predict all possibilities that
might rise during expatriation and thus in some cases the international assignment may fail
and required alternative situation. The company can reduce the potential failure during an
international assignment as the HR department is aware about most of the commonly
occurring reasons for expatriation failure.
 Although even after cautious recruitment and training an employee could find the assigned
project difficult because of personal or professional reasons. One most common cause of
failure during international assignment is family reason and it’s difficult to overcome if
family doesn't support.
 Other reasons of failure could be different culture, load of new responsibilities and daily
stress at new place. For some expat it’s difficult to live in other place with distraction which
reduces job performance.
Supportive usage of expatriate and staffing in effective manner
The HR professionals make sure that the following points are considered:
 Label those employees who needs language fluency in international operation as Cadbury
operates in most of the countries.
 Offers psychological assessment to find out the individual’s openness of having an
international experience.
 Providing potent support by training and during ongoing assignment and set expectations
clearly of employee role and performance (Velazquez Abad, 2017). Plus timely conducting
feedback and assistance.
 Support employees with self- assessment tool before international assignment which helps in
adjusting to host country like in this case USA and India.
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 Cadbury makes sure that expat gets the help of mentor in host country by providing former
or more experienced expatriate who gives more inside perspective.
 And the other important thing is to maintain a good connection between the operating
organization in UK and expatriates working in Delhi, India.
Recommendation
As with concern of expatriation the company must always keep this in concern that the
responsibilities of expat should not overload, as the employee already have to face challenges
including meeting expectations of company, adjusting to new work and new culture. The other
point to focus on is well organized global mobility team which guide expats about local
information of host place and helps in growth of international assignment.
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CONCLUSION
From the above report it can be concluded that expatriation place a great impact in
globalized economy and it opens the door worldwide for organizations to take a chance in
internationalized business, which also brings in the opportunity for employees to get few steps
ahead in career. Expatriation gives the endless opportunities to top organization prove itself all
across the world and challenges faced are the scope to improvise and they have more options to
operate. If one operation fails or growth reduce in a country they have the availability of
betterment in countries.
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REFERENCES
Books and Journals
Björk, B.C., 2017. Scholarly journal publishing in transition-from restricted to open
access. Electronic Markets. 27(2). pp.101-109.
Coviello, N.E., Jones, M.V. and McDougall-Covin, P.P., 2015. Is International Entrepreneurship
research a viable spin-off from its parent disciplines. Rethinking entrepreneurship:
debating research orientations, pp.78-100
Hannibal, M. and Knight, G., 2018. Additive manufacturing and the global factory: Disruptive
technologies and the location of international business. International Business
Review, 27(6), pp.1116-1127.
Hult, G.T.M., Hair Jr, J.F. and et. al., 2018. Addressing endogeneity in international marketing
applications of partial least squares structural equation modeling. Journal of International
Marketing, 26(3), pp.1-21.
Jean and et. al., 2016. Assessing endogeneity issues in international marketing
research. International Marketing Review. 33(3). pp.483-512.
Mathews, S. and et. al., 2016. Internet marketing capabilities and international market
growth. International Business Review, 25(4). pp.820-830
Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning.
Oey, M. and et. al., 2016. Challenges and opportunities for hydrogen production from
microalgae. Plant biotechnology journal. 14(7). pp.1487-1499
Pezzutto, S and et. al., 2018. Forecasting electricity market price for end users in EU28 until
2020—Main factors of influence. Energies. 11(6). p.1460.
Velazquez Abad, A., 2017. Techno-economic and environmental comparison between battery
and fuel cell electric vehicles (Doctoral dissertation, University of Southampton).
Zhong, R. Y. and et. al., 2016. Big Data for supply chain management in the service and
manufacturing sectors: Challenges, opportunities, and future perspectives. Computers &
Industrial Engineering. 101. pp.572-591.
ONLINE
Strategic Human Resource Management in Cadbury Schweppes, 2021. [Online] Available
through: < https://ukdiss.com/examples/strategic-human-resource-management-to-
cadbury-schweppes.php >.
Cadbury's employees want more international postings, 2021. [Online] Available through: <
https://economictimes.indiatimes.com/cadburys-employees-want-more-international-
postings/articleshow/4943253.cms?from=mdr>.
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