Topic: Sustainable Expatriate Management

Student Name Le Thanh Tung

Student ID 18929753
Contemporary Issues in International Human Resource
Course Name
Management
Lecturer
Assignment Number 1
Assignment Name Sustainable Expatriate Management
Due Date 7th April 2017
Date Submitted 7th April 2017
Word Count 2691 words
Abstract

In an international trade where competition is the most concern for the business

organizations. Many muti-corporations and international organizations want to transfer their

employees to another country to bring the technology ability and knowledge of their jobs to

the subsidiaries abroad. These people are called as an expatriate. The transfer process needs

to have planned for selection and training of the pre-departure. The issues that happen in

during for the foreign assignment might influence the success of the MNEs.

Introduction

Globalization is more and more popular on the worldwide and becoming successfulness.

Trade market does not only limit in one location but also they explore new businesses in a

new location, develop international organization by expanding operations to improve their

competitive positions in the global (Blassingame, 2001). Multinational enterprises (MNEs)

are transferring as the modern business faces multiple challenges opportunities. They have

understood that sustained development company base on the more from a firms internal

resource (Lado & Wilson, 1999). And so MNEs now consider human resource management

system to be a source competitive advantage. Therefore, they often send internal employees

to overseas subsidiaries for the sure time-basic to achieve strategic goals and corporate

missions concerning internationalization. These employees that are called expatriates.

According to Adler and Ghadar (1990), expatriates are identified as having a vital role to play

in each of the phases of internationalization. These expatriates have the task as the connection

between host company and subsidiaries.

The particular roles of expatriates depend on the global strategy of organizations. Moreover,

the policy of staffing (selection) and training parent company employees is the main issue in

Human Resource Management (HRM), the primary effect of diversity on HRM. Therefore,
expatriate management has been the major concern in the International Human Resource

Management (IHRM) that influence the success of MNEs (Mazur, 2014). Furthermore,

MNEs focus on the sustainability of the HRM in sustaining international business operations

and growth. Sustainability of the organizations is regularly described that company has the

ability to achieve the business goals, increasing the economic value, integrating

environmental and social opportunities into company's trading strategies in the long-term

(Financial Times, n.d.). The economic values are created by these firms. Hence these

companies attract and retain employees more efficiently and also more innovative. However,

some transfer programs often fail because many expatriates are often unprepared for the

international life. They have to face with the major variations in new location, different

culture, conflict language and the people during assignments. There are many barriers that

can be ascribed to less communication, lack of awareness, poor interpretation, and poorly

evaluate ability. Consequently, the expatriate assignment is often failed so that expatriates

return home earlier. These issues are the top concern of IHR managers.

The purpose of this essay is to understand the important of expatriate management in the

internationalization. In particularly, that is using the notion of sustainability in HRM through

moving employees in that process of MNEs. This essay will show the role of the selection

and training. These stages are chosen because they have the most influential on the success or

failure of the MNEs.

Expatriate Selection

For an international organization, the process of expatriate management is very crucial.

Especially, that is the time of the expatriates before expat departure; the company should

focus on recruitment/selection and training for the staffs.

The selection process of expatriate includes HR managers investigate and find suitable

candidates that can fulfill the expatriate assignment (Johnsson & Lennbro, 2008). That

process is prepared carefully, and it depends on the company/organization, different

organizations uses different procedures. According to Andersson, Johansson, & Pettersson

(2004) suggest that companies need to carry some important factors such as policies of the

host country, cultural internationalization, how to find any candidate who is suitable and

available for the position. Expatriates are required to possess different skills than parent

companys staffs. It is highly importance that the candidates need to have knowledge of the

business culture as well as understand the business practices of the home company.

Furthermore, expatriates also need to prepare for adjustment troubles, both at workforce and

in their social life, since they work abroad that is different cultural, political and economic

conditions (Andersson, Johansson, & Pettersson, 2004). However, instead of selecting the

best candidate, HR managers find the people who willing to go. Most of them have

experienced for adjusting to the international life and work. If choosing the right individuals

who have pieces of knowledge with the foreign culture and environment, suitable for the

company strategy, thereby succeed in the international assignment.

One common that companies used the formal criterion when selecting candidates are the

interview with each applicant. HR managers use tools and conditions of the company to

support the formal assessment and decision the applicants suitability. Besides that, the

technical competence of the candidates is used for selection as the standard. Moreover, many

companies concentrate on the candidates skill in the international relationship with another

people from the multiculturalism. When HR managers select the candidate for the

international assignment, depending on the factors as strategic factors, conflict resolution

skill, teamwork skill, leadership skill, communication skill, technical ability, language, MNEs

requirements, social skill, cross-cultural suitability (Brynningsen, 2009; Gerhart, 2009).

In some cases, organizations often ignore candidates family requirements. That is the reason

for expatriate failure. One crucial factor influences on the success of the international

assignment are the family requirements, especially the spouse. The company needs to

recognize the role of the household with the expatriate. The family is a motivation for the

expatriate's performance in the host location. Dowling, Festing, & Engle (2013) argued that

the couple (or accompanying partner) often concern about immigration regulations, well-

being, and education of their children. Moreover, apart from the accompanying spouse's

career, other family considerations can cause a potential expatriate to decline the international

assignment. For example, interruption to childrens education is a critical review by the HR

managers, and new location can inconvenience for children life.

One issue that HR managers need to care is the increasing divorce rates. The custody of the

children has become the critical factor in assignment selection and acceptance. Also, selection

decisions are influenced by the particular of MNE requirements. Selecting employee to work

in a foreign country may require significant investment from the company of the host

country, and could be limit by the agreement on selection requirements.

Expatriate Training

Pre-departure training is crucially concerned to ensure the candidate can demonstrate

effectiveness performance and success after the employee has been selected. Expatriates are

often used for training because of a lack of suitably trained staff in the host location. The

training aims to improve employees current work skill and behavior. Moreover, purposes to

support expatriate adjustment and on-assignment performance. According to Earley (1987), a

major objective of cross-culture training is to help employee have knowledge in the cross-

cultural life, the ability to adapt to other cultures and to develop a global mindset. As

Dowling, Festing, & Engle (2013) pointed out that the essential element of the pre-departure
training programs includes: cultural awareness training, preliminary visits, language

instruction, assistance with practical day-to-day matters. Furthermore, international

assignments are often more complex than the domestic task. In order to the expatriate feel

comfortable and do not feel isolated from the new location.

Lack of knowledge about the host country culture can make the expatriates get some

difficulty in during his/her the foreign assignment. Hence, the cultural awareness programs

are necessary to help foreign employees understanding and behave accordingly with the host

culture or at least can coping models. The cultural knowledge programs may be changed

depending on the host country, period, the purpose of the expatriate, and the provider of such

programs. The conventional structure of pre-departure training is the sample assignments,

intercultural workshops, and situation simulations. The main advantage of training come

from the fact that it can help employees improve skills critical for the international

assignment, improve the efficient performance, know how to connect with the locals and

given correct decisions (Shen, 2005). Interactive learning models want to trainees feel

comfortable with the life in the host country and to learn details about the host nation (Ko &

Yang, 2011).

A preliminary visit to the host country can be very useful in orienting international employees

that can be a useful method in the short-term. Such a visit arm to introduce the market context

in the host nation to expatriate and help support more knowledgeable pre-departure training.

And it can aid in the adjustment process. A preliminary tour to expatriates to allow them to

become familiar with the new country, new life and education for their children and other

things serve for their life that is necessary for the successful transition to the host country.

MNEs allow the previous visit program to the expatriate (and spouse) can make more

informed decision about accepting the overseas assignment. Connect with cultural awareness
training; the initial visit is a necessary component of a pre-departure program.

Communication to the community in host location can also be a positive result. And it can

influence on expatriate adjustment.

Dowling, Festing, & Engle (2013) argue that language training should be the desirable

component of a pre-departure program because the knowledgeable of the language of the host

nation is significantly necessary to strongly living and working in that country. Besides, the

culture is also represented by the language, barriers of the language will disappear if

expatriates are fluency in the local language and the potential for confusing and the mistake is

significantly decreased. As a result, the first period of living and working, the time will be

shortened and made easier. As Ko & Yang (2011) contend that proficient language is a major

key to expatriates improve effectiveness performance and negotiating ability. The language

barrier can limit the MNE's ability to select the most suitable candidate. Moreover, English

has become the popular language of the world trade. Most of the countries of the world use

English-speaking as the primary language such as Singapore, Britain, The USA, Canada,

Australia and New Zealand. Besides, some countries as India has an availability of a large

local population use English to recruit foreign employees. In contrast with some countries

argue that language skill as unimportant such as Europe, Asia, and South America, however,

who considered knowledge of a foreign language as critical to success. It is clearly that the

ability to speak a foreign language can improve the effectiveness performance and improve

managers access to information regarding the host countrys economy, government and

market.

Another element of the cross-culture training program is that provides knowledge that

supports in the relocation. It makes the expatriates' family feel more comfortable when

moving to the new environment. Some researchers found that one important issue in IHRM is
inadequate human resource support such as a lack of preferment expertise and a poor attitude

toward international assignment among locally-trained (host-country). Human resource

support is significantly important in the first weeks or months because the expatriate is

unfamiliar with the new job, a new life, therefore, they need to some advice and information

from the HR supports. However, many MNEs now take the support of the experts to

contribute this valuable assistance. Furthermore, host-country HR staff will organize an

orientation program and language training of during an assignment.

Summary

Nowadays, globalization has become more important than ever, this lead to the multinational

corporations have been an increasing concern in IHRM. They have recognized that the

practical management of international human resources is a primary determinant of success in

international trade (Shen, 2005). However, many companies undervalue the complex nature

of HRM problems involved in foreign operations (Dowling, Festing, & Engle, 2013).

Moreover, there has limited examination into the expatriate selection and the international

training of MNEs, and especially, into IHRM of MNEs, so that becomes a concern for HR

managers in the selection and training of expatriates to become the global employees who can

transfer the technology from the parent company to subsidiaries. The expatriate management

is an effectiveness means for sound administration and control of foreign operations.

The process of managing expatriate of MNEs consists of several stages, this essay focus on

the process of selection for the international assignment and training them to have the basic

knowledge that can help them integrate into the life and work of host-country.

As the Dowling, Festing, & Engle (2013) pointed out that the selection procedure base on the

different methods such as interviewing each candidate or their technical competence,

appropriate personal characteristics, and international experiences to select candidates.

Moreover, managers also consider factors such as the influence of family (spouses, children)

of candidates. They often concern about immigration regulations, well-being, and education

of their children. The HR managers also need to consider the individual factors of the

candidate; the rising divorce rate may become a crucial factor in assignment option because

of legal issues such as custody. These problems may prove to be barriers to the international

mobility.

After finish the selection process, HR managers continue to training candidates, the aim to

help the candidates understanding of issues during their overseas assignments. The training

process is based on factors such as cross-cultural training, preparatory visits, language

preparation, and support with daily activity. These are a significant important for foreigners

working in an entirely new environment because the training assignments help the candidates

adapt to indigenous cultural and contribute to the success of the expatriate management.

Selecting and training are two critical processes in the transfer of employees from an internal

worker to an international employee. If the companies do not care the course of managing

expatriates on the foreign task, it can lead to increased probability of higher failure rates for

global government and the international integration. This may disrupt the organization's

global competitive advantage.

Conclusion

This essay has considered the role and function of the expatriate management in the global

expansion strategies of the global corporations. However, expatriates as a consequence of

being transferred from one location to another country. Particularly, Corporate Sustainability

can subsequently be described as meeting the needs of a firms particular and complex

stakeholders without compromising its ability to meet the needs of future stakeholders as

well. This is crucial because of the selecting and training for the expatriates are to aid
concentration of consciousness and the barrier-free sharing of knowledge within the

organization to improve the organizations ability to innovate. To develop the sustainable in

IHRM, HR managers responded to the three factors that linked to sustainable HRM: provided

the supply of future workers, conventional practice of employees, and commitment of

employees with Corporate Social Responsibility (CSR) practice. These factors have

addressed important issues affecting selection and training for international expatriate

assignments. This essay also pointed out that expatriate intent to stay and performance is

affected by the cultural adjustment and other moderating factors such as the duration of the

task, enthusiasm to move and work-related factors. Moreover, in the selection process, the

personal and situational factors are significantly considered. The selecting the right candidate

for international task through evaluation of the standard criteria is a high difficulty.

Furthermore, cross-cultural training focused on learning local standards and laws should be a

requirement of the MNEs. Also, to shorten the expatriates' time of cross-cultural recognition

and to maximize their potency.

Although the recognition of arguments surrounding expatriate selection and training has

extended in several years, it also needs to be more investigated. Research samples of

expatriates are often updated and managed by US researchers, although European theoretical

and practitioners have been concerned about this issue. The multinationals emerging from

developing countries such as China and India has been influenced by the selection process

and cross-cultural training. If multinationals are encouraged to consider the sustainable

expatriate management as part of an inter-organization network approach to management,

this research can apply for all organization from different country locations.

We will need more understanding about issues discussed in this essay are for all MNEs. It is

apparent, though, that expatriate selection and training remain critical. Finding the right
people to fill international positions, particularly key managers can determine global

expansion. However, effective selection and training is only the first step.

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