International Assignments of Human Resources - Case Study Example

International Assignments Introduction In a globalized economy companies are focusing on attracting, selectingand recruiting experts in various fields globally to increase business competence (Stahl et al., 2012). The human resource personnel have the responsibility to recruit, hire and train competent workers to increase business competence in the foreign countries. The success of expatriates in cross-cultural competences is of great significant to the human resource personnel (Harzing & Pinnington, 2010). This document focuses on issues the human resource personnel should take into consideration when hiring competent expatriates to carry out company’s mission in a foreign country. The specific issues covered in the study include expatriates, pre-departure training components, expatriates performance appraisal, selection and recruitment strategies for expatriates, staffing alternatives, importance of offering high-quality mentoring for expatriates and how to measure return on investment for international assignments. A. Pre-departure training components Pre-departure training is very crucial for workers who have been assigned an international mission to represent their companies (Harzing & Pinnington, 2010). The training equips the assignees with company’s objectives and personal coping mechanisms in the host country in order to avoid pre-mature return of the expatriates. It enables the expatriates to relate between host country and home country and establish the mechanisms for overcoming challenges that may arise as a result of differences between the two countries (Stahl et al., 2012). 1. Cultural awareness The company’s workers will have to be sensitized about the cultural differences between the home country and host country (Stahl et al., 2012). Various nations have different cultures that may affect the expatriates relate with business partners and citizens in the host country. Inadequate understanding of the background of the people in the host country can make the lives of the expatriates extremely difficult and can result to conflict due to what may be seen as interference or disrespect of culture of the people in the host country by the expatriates (Stahl et al., 2012). Therefore, pre-departure training aims at orienting the expatriates with information regarding the cultural values of the host country in order to alleviate culture shock as the expatriates take up their new jobs. The amount of training offered will depend on the prior exposure of the expatriates to particular of the country they expect to operate (Harzing & Pinnington, 2010). 2. Sensitivity training This entails briefing the expatriates of their roles and duties in a foreign country. Pre-departure training is essential because it enables "expatriates to understand the scope of their task and prepare for the task in advance" (Stahl et al., 2012). In addition, the assignees are informed of means through which they can request for assistance in case they need any assistance. They are briefed on they shall get relocated to the host country and the procedure for returning after they accomplish their mission or whenever they will be “required to return to their home country” (Stahl et al., 2012). Training employees on how they can address issues whenever they arise while on the international mission will make them be at ease and create satisfaction hence increasing their efficiency of their operations (Harzing & Pinnington, 2010). 3. Country briefing The expatriates should be informed of specific details about the host country. They should be aware of the geographical location of that country, the environmental conditions, political environments, education system in the country, business opportunities available, etc. (Harzing & Pinnington, 2010). Having such information is very critical for effectiveness and efficiency of the expatriates because they can prepare on to expect and the challenges they are likely to face in that country. For example, the issue of "education system will affect the quality of education their children will acquire in that country and political environment in any nation determines the level of security in that country, business opportunities and affects the level of economic growth" (Harzing & Pinnington, 2010). Harsh environmental conditions can make life unbearable and affect efficiency and effectiveness of the expatriates hence they should be informed in advance in order to decide on the way forward to decide on the survival mechanisms in that environment or decide on whether to take or decline the offer (Stahl et al., 2012). If possible the expatriates should make a preliminary visit to the country if they have been there before so that they can gain insight on what to expect once they take the offer (Harzing & Pinnington, 2010). Furthermore, having information about the host country can help expatriates to assess recreational opportunities available for them and determine where they can spend their leisure time thus it serves as a motivation factor. 4. Language training In some cases, the language used in the home country differ from the one used in the host country. During pre-departure training, the expatriates should be briefed about the language used in host country and the best language the can use in that particular country in order to avoid conflicts and enhance understanding (Stahl et al., 2012). In most cases, English is preferred because it is universal. Also, during the "pre-departure training the expatriates will be trained on how to be courteous to the people in the host country in terms of language use and general relationships with the people" (McNulty & Inkson, 2013). Training on language use is very critical because it affects business transactions and the understanding of when the business is closed. 5. Financial system Since various countries use different currencies the expatriates should be trained on various countries currencies and the exchange rates (Stahl et al., 2012). They should be informed of how they will get their salaries and allowances and in what currency. Information regarding the currency exchange rates is very crucial because it enables the expatriates to compare their salaries and allowances in the host country currencies with the same amount held in their home country to establish their worth. Salaries and allowances affect performance and efficiency of workers thus having the information about the actual salaries and allowances they get can be a motivating or demoralizing factor among the expatriates (Harzing & Pinnington, 2010). B. Criteria for Assessing expatriate performance. Performance of different expatriates depends on the country in which they operate thus managers should design and apply different expatriates appraisal for a specific nation (Stahl et al., 2012). The human resource personnel should establish each expatriate’s profile indicating the company’s expectations from that particular employee during and at the end of their international mission. a. Cross-cultural adjustments The performance of the expatriates is influenced by their ability to adjust to the culture of the host country (Stahl et al., 2012). The faster the expatriates and their spouses can adjust to the culture of the host country the faster they can be able to focus their attention on the assignments. Failure to adjust to cross-cultural differences results to depression and emotional stress resulting to poor performance. b. Performance during the foreign assignments Since expatriates are assigned specific tasks to accomplish within a specified time, their success is determined by what they achieve in their respective tasks (Harzing & Pinnington, 2010). The execution of the assigned tasks by the expatriates results to increased efficiency of operations and increase in organizations’ profitability. c. Completion of the mission Expatriates are assigned specific task to complete in a specific period in a designated country. The success of the expatriates depends in their ability to achieve the assigned task without premature termination (Stahl et al., 2012). If the expatriate is discontinued from implementing the assigned task for any reason of his or her contribution that expatriate should be considered underperforming. The criterion also takes into consideration the attitudes of the expatriates to complete the assigned task of quitting prematurely. Ability of the expatriate complete the assigned task contributes organization’s competence the expatriates focus n achieving their objectives without terminating the assignment prematurely (Harzing & Pinnington, 2010). C. Recruitment and selection of expatriate Recruitment and selection of expatriates involves searching for the right candidates to perform a particular task and obtaining adequate information about each candidate that relates to the task they are expected to perform (Stahl et al., 2012). The HR should determine the country from where to obtain expatriates based on competence of potential applicants and the relationship between host country and the home country of the expatriates. The organization should consider using open hiring strategy in order to attract competent job applicants from any part of the world and ensure fairness in the recruitment and selection process (McNulty & Inkson, 2013). The approach will reduce the chances of pre-mature termination since the applicants will be those already willing to work in a particular country and may already be having expertise in a given task (Harzing & Pinnington, 2010). The hiring manager should screen the applicants based on their competence for the task, willingness to work in a foreign country, ability to adjust to a foreign environment, communication skills and ability to relate with others. D. Staffing Alternatives for Foreign Operations Geocentric It is the staffing approach whereby expatriates are hired based on their competence and adaptability irrespective of their country of origin (Stahl et al., 2012). Ethnocentric The home country nationals are appointed in the senior positions due to their expertise with organizational culture, goals, policies and company products. It is favorably in a centralized globalization and where the local people lack managerial competence thus enabling those senior managers to improve efficiency of company reporting (Stahl et al., 2012). Both ethnocentric and geocentric approaches focus on obtaining competent organizational leaders to increase the organization’s competence (Stahl et al., 2012). The organization should use geocentric in order to attract most qualified workers from across the globe who may bring unique skills and reduce staffing cost due to variation in pay rates across countries. E. Mentoring program Expatriate mentoring refers to the relationship between and expatriate and an experienced person whereby the expatriate is given guidance and support as well as feedback on various issues in during their mission in a foreign country (Harzing & Pinnington, 2010). Mentoring is essential because it acquaints the expatriates with relevant skills, maintains them focused on organizational goals, reduces the chances of expatriates’ failure and enhances communication between the expatriates and the organization. For example, the use of on-site mentoring system can provide the expatriates with relevant skills related to their respective tasks and improve communication between the expatriates and the human resource personnel (Stahl et al., 2012). F. Return On Investment (ROI) Hiring of expatriates is quite expensive compared to hiring of local workers to perform similar tasks. Before companies decide whether to hire local workers or expatriates, they should be able to measure the cost expatriate explore alternatives to reduce the cost (Mcnulty, 2009). The cost should be evaluated in the light of benefits expected due to hiring of expatriates. The ROI of hiring expatriates is a twofold occurrence expected to benefits the organization and the expatriate. Individuals acquire global competence, career development, cultural understanding, etc. (McNulty & Inkson, 2013). However, the company should be able to assess its gain through evaluating overall customer satisfaction, increase in firms’ internalization, increased organization profitability, firms’ stability, retention of competent employees, etc. Assessing the ROI based on client satisfaction is the most essential component of the firm because it encompasses the other aspects contributing to the overall efficiency of the expatriates (Mcnulty, 2009). Conclusion An organization intending to hire expatriates should choose the most appropriate selection and recruitment method that will enable them achieve their objectives of establishing competent employees. Pre-departure training of expatriates plays a significant role in influencing their performance. The organization can opt to hire senior managers from the home country to ensure implementation of business objectives or may hire competent workers irrespective of their origin to promote fairness and productivity. Mentoring of expatriates can increase their performance and reduce the rate of terminating their international assignments pre-maturely. The organization should measure its return on investment by focusing on the increase in the rate of client satisfaction and organizational profitability. References Harzing, A. & Pinnington, A. (2010). International Human Resource Management, (3rd Ed.). SAGE. Mcnulty, Y. (2009). Measuring Expatriate Return on Investment in Global Firms. Monash University: 1-43. Retrieved on 20th August 2014 from Http://www.buseco.monash.edu.au/mgt/research/acrew/expatriate-roi-industry-report- april-2009.pdf McNulty, Y. & Inkson, K. (2013). Managing Expatriates: A Return on Investment Approach. Business Expert Press. Stahl, G. K. Bjorkman, I. & Morris S. (Eds) (2012). The Handbook of Research in International Human Resource Management. USA: Edward Elgar Publishing: 199-324. Read More