World Mobility Perspectives - Coursework Example

International Assignments Table of Contents Introduction 3 International Assignments including Expatriation are an Essential Aspect of MNC Operations4 Main Reasons for MNCs to Send Managers or Other Staff on International Assignments 6 Best Criteria for Evaluating the Success of International Assignment 10 Conclusion 12 References 14 Introduction International assignment is important from both organisational and individual perspectives. In other words, international assignment deals with knowledge, transfer, staffing, recruitment, competencies and global career etc. Such assignment is also an essential aspect for multinational corporations (MNCs) for the development of organisational structure and management. Therefore, MNCs send managers and other staff members on international assignments for business progress and sustainability of a company in the long run (Victoria University, 2014). International assignment is also considered as a process that consists of pre-assignment stage and repatriation. During the periods of economic fall, international assignment adds worth to a business, as business operations are managed by skilled employees. Expatriation is a process wherein a person works outside their home country. This term is often used in the situation of skilled or professional workers sent to locations abroad by their companies. MNCs send their managers abroad for 2- 5 years to have a better opportunity and to increase the labour force and to mitigate staffing problems (Victoria University, 2014). Staffing problems are the major problems in the international market. MNCs are identified to be following some staffing policies to improve growth of the same. These staffing policies are ethnocentric, polycentric, geocentric and regiocentric. As per the ethnocentric policy, MNCs hire experts of home countries with the aim of ensuring that foreign offices are aligned with the interest of home offices. In case of polycentric policy, host country residents are appointed. As per the geocentric staffing policy, MNCs assign only skilled professionals and with the regiocentric staffing policy, MNCs hire third country nationals. These staffing policies are essential for the MNCs for improving the organisational structure and increasing the economic growth of a company (Reiche & Harzing, 2009). This paper intends to explain international assignment and expatriation along with their importance for the operations of the MNCs. In addition, the reasons for sending managers and other staff members of the MNCs on international assignments and the best criteria for assessing the success of international assignments are discussed in the paper. International Assignments including Expatriation are an Essential Aspect of MNC Operations An international assignment is a process consisting of pre-assignment stage and repatriation. International assignments also involve transfer of knowledge, recruitment process, competency and global career. In MNCs, international assignees are senior managers, general managers and executives of marketing and accounting department etc. In this regard, a company assigns international assignees for long period of time with the aim of ensuring that business operations are conducted in accordance with organisational objectives (Reiche & Harzing, 2009). Transfer of knowledge within employees from one country to another is essential for gaining adequate knowledge related to working culture and procedures. International assignments also help managers or other staff members of MNCs by motivating them in their work and providing them better opportunity and facility to improve their career structure. Such assignments also help to maintain a good relationship among international and local staff members, which is important for MNCs to work together as team members to attain organisational goals successfully (Coorens, 2013). Three different strategies helpful for MNCs to manage their international operations include local, centralised and global strategy (Coorens, 2013). These strategies can also be segregated in four dimensions that include formation of assets and abilities inside MNCs, characters played by separate subsidiaries, improvement and movements of knowledge. These dimensions are essential for the success of MNCs. In this respect, to attain these scopes or dimensions along with competitive advantage, MNCs send managers on international assignments. MNCs with the implementation of local strategy are able to develop better responsiveness amid foreign offices and accordingly, the companies need expatriates to transfer technical and functional knowledge, which may not be available in foreign offices (Crown World Mobility, 2013). MNCs implementing centralised strategy are able to share required values, culture and policies of the home country. Through global strategy, companies are facilitated to incorporate best activities from all countries in one corporate culture. International assignments are also essential to create a common organisational culture through the development of a suitable communication network with an organisation and it is important for transferring needed knowledge (Coorens, 2013). Expatriation is a process wherein an expatriate works and lives outside the country other than his/her home country. It is also used for skilled or professional workers who are sent abroad by their companies. In this context, expatriates comprise managers, accountant and marketing executives of a company who are skilled staff members responsible for sustainable development of a company (Reiche & Harzing, 2009). An organisation uses several types of HR practices at the time of managing the expatriates. These HR practices are involved in selection process of expatriate, their preparation for expatriate assignments, managing performance of the expatriates during the assignments and organise repatriation process after the completion of the assignments. Expatriation process is essential for MNCs to develop a common corporate culture and communication network through which communication can be accomplished among the international and local staff members. Expatriates are the person who helps to transfer knowledge to the foreign companies where there is a lack of understanding regarding organisational objectives, working culture and organisational operations among others (Caligiuri & Colakoglu, 2007). Expatriation is also essential to develop a global leadership and growth of a new business. In this process, skilled professionals are expatriated abroad in subsidiary units for 2 to 5 year with the aim of ascertaining that business operations are performed in accordance with the operations and functions of parent companies. In addition, expatriation has been identified as an important mechanism based on which knowledge and corporate culture can be maintained successfully. After completing international assignments, managers or other staff members have to return back to their own country. It also helps managers or other staff members in having a better experience of cultural differences that are witnessed in different countries, which aids them in strengthening their career structure (Nikolaeva, 2010). Supply side issues relating to human resources are considered as HR issue faced by MNCs in subsidiaries. To solve this HR problem, MNCs adopt international assignments and expatriation. In international HRM practices, expatriation in adopted as an important measure based on which success of a business is determined (Sakho, 2015). For instance, Procter & Gamble (P&G) has been adopting international assignment based on which employees are provided with the opportunity of developing their leadership skill and innovation as well as analytical capabilities for building competency level (P&G, n.d.). Main Reasons for MNCs to Send Managers or Other Staff on International Assignments MNCs are organisations that are performing operations in different overseas locations. MNCs are also defined as corporations having control over production operations in relation to good and/or services in two or more countries apart from home country. MNCs have several dimensions that can be viewed from the various perspectives such as organisation, ownership and planning among others (Mitrev & Culpepper, 2012). International assignments are also helpful for MNCs to improve their profitability and sustainability of business. MNCs send expatriates abroad to accomplish an international assignment such as knowledge transfer, rapid growth and developing markets. Other reason for sending managers or other staff members on internationals assignments can be to reduce problem of supply side issues, demand issues and cost issues etc. (Yang & Ko, 2011). Another reason can be to motivate and train international staff members in order to enhance their abilities and capabilities for overall organisational performance. One of the important reasons for expatriation can be to develop a communication network between international and local staff members. It will help to build a healthy relationship between them and transfer knowledge for better accomplishment of organisational objectives. To enhance the ability of local staff members and motivate them to acquire required knowledge, expatriation is vital. Collaboration of capability and motivation of local staff members increase the level of knowledge of the employees to a large extent (Thoo & Kaliannan, 2013). The major reasons to improve staffing issues faced by MNCs, managers are sent on international assignment. International HRM has the tendency to focus on various determinants of knowledge transfer. International assignees have vital job responsibilities in their assignments such as to manage local procedures, representations and interaction with other elements to achieve goals of an international assignment. International assignees also receive rewards such as incentives and promotions on the completion of job roles (Collings & et. al., 2007). In the recent years, MNCs operate their business on worldwide basis and therefore, it is necessary for managers to have knowledge about the global business along with different business processes that are essential for the growth of the same. To gain knowledge about global business, MNCs send managers on international assignments. In addition, expatriation is recognised as an important procedure of international HRM for managing business operations and developing an effective working culture (Stroh & Caligiuri, 1998). The accomplishment of knowledge transfer completed by international assignees is influenced by an individual employee who takes part in this process. Knowledge transfer is important to gain new knowledge and enhance communication level of individuals by implementing acquired knowledge in the operations of employees for better coordination and cooperation. It also improves working condition and provides the employees with better opportunities and facilities to develop their career structure (Collings, Scullion & Morley, 2007). The expatriation process is conducted on the basis of four criteria that include ethnocentric, polycentric, geocentric and regiocentric. These four policies are used by MNCs in international assignments for expatriating managers and other staff members with the aim of ascertaining that such assignments are accomplished with better accomplishment of the desired objectives and purpose. Accordingly, managers and other staff members are expatriated abroad on the basis of their competency level in order to ascertain that the mission and vision of a company has been successfully met. In this context, expatriation can be recognised as an important medium for business sustainability, progress and profitability. International assignments are classified into four groups such as first class assignment, second class assignment, third class assignment and fourth class assignment. In first class assignment, expatriates are the chief executive officer whose functions are to supervise entire process of a business. Second class assignment is involved in the formation of functional department by the functional heads. In third class assignment, expatriates act as trouble shooters whose responsibility is to examine and solve definite operational problems. Fourth class assignment involves evaluation and assessment of employees (Bonache & Oberty, 2008). In this respect, MNCs frequently send potential managers on international assignments for the business process development. Companies select an expatriate on the basis of some criteria such as technical ability, ability to understand and foreign language knowledge. Managers or potential employees should know foreign language, so that they can easily communicate with people of the foreign country and complete their assignment in a time effective manner. This assignment is important for both organisation and managers. International assignments are essential for the development of an organisation and process of a business (Alvarado & et. al., 2010). In addition, managers are expatriated on international assignment to develop a smooth process of entering new markets and expand the business internationally or in the global markets. In this respect, international HRM is recognised to play an imperative role in expatriation. HR department is entitled with the responsibility of managing cultural differences amid expatriated professionals as they belong to different nations. Contextually, HR department should develop cross-cultural program for building multi-cultural management competencies. In this respect, expatriation is identified as an important mechanism based on which managers and other staff members are sent on international assignments with the aim of ensuring that business operations are conducted in a collaborative or coordinated manner in the operations of both home and overseas companies. Additionally, expatriation has been vital for managing cross-cultural aspects in organisations by retention and management of employees representing different cultural backgrounds. MNCs with expatriation are able to ensure that the operations are performed in accordance with organisational objectives. In international assignments, expatriation is an essential mechanism based on which managers are sent abroad to ascertain that operations in foreign offices are conducted in an aligned way with the operations of the company located in home country (Price water house Coopers, n.d.). For instance, HSBC has been identified to be adopting expatriation with the aim of transferring knowledge as well as expertise in different nations with subsidiary units. The company expatriates for ascertaining that the operations are conducted in accordance with the objectives of the parent company, so that organizational goals are successfully accomplished. In addition, expatriation is performed with the intention of managing cross-cultural aspects in the workplace (Kangas, 2012). Best Criteria for Evaluating the Success of International Assignment The success of an international assignment can be evaluated through the success of knowledge transfer. Knowledge transfer is one of the important functions of an international assignment to be performed by potential employees or managers of MNCs. Knowledge is a major element, which is required for many purposes that include technical and managerial knowledge etc. In a foreign country, there may be a lack of availability of business and other related knowledge. Accordingly, employees of foreign countries should have required knowledge to complete their work effectively. If expatriates can transfer knowledge effectually to various countries where it is required, then the success of international assignments can be ensured (Bonache & Oberty, 2008). The success of international assignments can also be assessed based on the criteria of the selection of expatriates. If companies cannot select expatriates on the basis of international assailment’s requirements, then the functions of international assignments cannot be conducted effectively. MNCs should select expatriates on the basis of technical ability and ability to understand and speak foreign language. It is necessary for employees or managers to understand foreign language and have the capability to speak foreign language in order to communicate with the people of the foreign country (Caligiuri, Tarique & Jacobs, 2009). Other criteria of the success of international assignments are performance of the expatriates or the assignees. The performance of expatriates can be evaluated on the basis of their work and communication ability. Expatriates should have the power to manage an entire business process and have the ability to implement new ideas or strategies for the development of an organisation, which can be considered as the activities performed by expatriates (Lillie & et. al., 2013). Expatriates should have capabilities and knowledge to play the required roles in international assignments and it can be helpful for the success of international assignments. Through the development of an organisation and expanding business internationally, the success of international assignments can be assessed appropriately. One of the major goals of MNCs is to enter new markets and expand the operation internationally to increase the popularity of a company. For that reason, MNCs send managers or other staff members on international assignments (Schuler & Jackson, 2010). Improvement of global competence is one of the objectives of MNCs and therefore, the success of international assignments can also evaluated through the accomplishment of the competency level in the global environment. Managers should have the ability to develop global competency and develop an understanding of cross-cultural environment. In addition, managers should develop global leadership to have a good environment for performing their work. Good leadership is required to complete the work on time without any burden (Harris & Brewster, 1999). The employees who have the ability to perform their work locally and internationally are having the motivation power to motivate staff members of foreign country. These capabilities of mangers can be one of the major criteria for the success of international assignments. Managers involved in this assignment should have the capability to accept several challenges and to implement new strategies to solve these problems accordingly. This can be one of the criteria for the success of international assignments, as managers involved in international assignments have to play several significant roles to complete such assignments efficiently (Waxin, 2007). The functions of international assignments can succeed through the ability and motivation power of employees by doing required work and acquiring knowledge. The success of the assignments also depends on the success of internal and external process of a business. Process development is also a major reason to send managers on international assignments by MNCs. The success of international assignments also depends on motivation and capability power of local staff members to obtain necessary knowledge, which is important to operate a business. These employees might have high capacity to absorb knowledge, but it cannot be realised until they are motivated to acquire the same (Harris & Brewster, 1999). Conclusion From the above discussion, it can be stated that an international assignment is considered as a process, which contains of pre-assignment phase. It is an exclusive mechanism based on which business operations can be managed and conducted successfully. International assignments involve transfer of knowledge, recruitment process, competency and improve worldwide career etc. On the other hand, expatriates who are involved in expatriation are employees who work and live outside their own country for 2 to 5 years to complete an international assignment. From the study, it has been observed that international assignments and expatriation are the major aspects for the development of MNCs. International assignments and expatriation is essential for the personal and organisational development and for transfer of knowledge for local and international staff members. It is also essential to generate a common organisational culture by developing a suitable network of communication. In this regard, international HRM is identified as vital for managing expatriates and other related business issues on a global context. In addition, HR practices are developed based on different factors that include cross-culture, managerial abilities and conflicts among others. Correspondingly, HR department are identified to be framing different strategies such as cross-culture management and motivation and training in relation to expatriation with the aim of ensuring that the expatriates are able to perform their required international assignment in an effective manner. There are several reasons for which MNCs send the managers or other staff members on international assignment. These reasons are the development of an organisation and process, and transfer of knowledge locally and internationally. One of the vital reasons to send the managers on international assignment is to enter new market and extend the operation of a business on a global context. It can be comprehended that that there are various criteria through which the success of an international assignment can be evaluated. The managers involved in the international assignment should have the technical ability, motivation power, good communication skills and knowledge about the global business. The managers should have knowledge about foreign language, so that they can easily communicate in foreign nations. On the basis of these criteria, the success of an international assignment can be accomplished in an effective manner. References Alvarado, I. et. al., 2010. Rewarding for Success in an International Assignment: the Case of Returning to an Uncertain Future. Journal of Business Studies Quarterly, Vol. 1, No. 4, pp. 110-118. Bonache, J. & Oberty, Z. C., 2008. Determinants of the Success of International Assignees as Knowledge Transferors: A Theoretical Framework. The International Journal of Human Resource Management, Vol. 19, Iss. 1, pp. 1-18. Coorens, A., 2013. Increasing the Effectiveness of International Assignments: Aligning Them with the Goals of the Organization and Assignees. 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