Managing Human Resources in International Organisations - Essay Example

Expatriate failure Expatriate failure is described as a premature comeback from a foreign task. The concept has assumed dominance in the theory of expatriate management perhaps because of its role in influencing how a business performs in the global market. Even the authors of academic articles about expatriate management refer to expatriate failure to enhance their arguments. The concept of expatriate failure is becoming an increasingly sensitive one in the modern world of business, particularly in terms of the importance attached to the performance of expatriates in a foreign environment. Different articles hold different opinions with regard to failure rates (Black 1998). In spite of contrasting opinions on the matter, expatriate failure remains an important issue because it affects the performance of businesses in the global market. The relevance of expatriate failure suggests the concept needs to be explored further to determine what the major causes of expatriate failure are and how they can be minimized. The biggest handicap for many international organizations is their inability to understand the concept of expatriate failure. While addressing this question it is important to mention that we will critically examine all the managerial issues that underlie it and the ways in which expatriate failure can be minimized (Harzing et al 2011). In the existing literature, expatriate failure is described using various themes such as premature return, below average performance and adjustment problems. Other terms that can be used interchangeably to refer to expatriate failure include expatriate turnover and recall levels. Some studies refer to expatriate failure as premature return but do not give reasons for such reference. Generally, expatriate failure comprises categories of premature completion of a foreign assignment for certain reasons. Some scholars regard expatriate failure as underperformance by individuals who have been given assignments in foreign lands (Briscoe et al 2012). The global arena offers diverse opportunities that can be exploited by using expatriates. For example, to overcome the problem of a lack of qualified personnel in countries of interest, a company may decide to send its expatriates to those countries as long as they are talented and committed. Since expatriates carry a lot of interest on behalf of the company, consideration must be given to some important factors such as culture, knowledge transfer, coordination and other functional needs such as controlling and developing skills necessary in the global market. Many organizations are actually more concerned about ways in which they can enrich individuals for foreign missions. This is particularly so because the overriding interest is to do successful business. It is presumed that a successful expatriate is one who can endure his work without quitting (Toh and DeNisi 2007). This is an important qualification for any expatriate representing his or her company in global business. Expatriates are expected to build strong links with locals once business commences in order to establish good relationships that will see their assignments completed successfully. Acclimatizing helps expatriates to understand the underlying challenges and how they can be tackled for the successful completion of assignments. Different articles use the term “expatriate adjustment” to describe how individuals come to terms with the new environment and reconcile with it. The ability to adjust to a new environment requires more than just psychological well being. But it assists individuals in adjusting to the new country’s culture and everyday life. Since overseas assignments are complex, it is now known that not all expatriates perform well in international assignments. Studies have established that expatriate failure rates range between 25 and 40 percent (Ozbilgin 2005). Organizations need to explore different ways to minimize failure rates. These could include designing suitable programs that experts can use in the foreign country. Reasons for expatriate failure Failure to adapt Failure to adapt is described as an expatriate’s inability to adjust to a new environment. Such failure can be accelerated if the spouse and children do not adapt to the new environment. In many cases this will force expatriates to abandon their mission so they can attend to their family’s interests first. Culture can also hinder adaptation. This is especially so in situations where the expatriate’s cultural beliefs and values are not compatible with those practised in the new country, as illustrated by Dowling et al (2008). Personal and emotional maturity It is inevitable for a new expatriate working in foreign country to have experiences that are new and different to what the expatriate is used to at home. These differences include, for example, the way people value communication, time and teamwork. An employee may find it difficult to accommodate such changes if he is not prepared for them, and also if the employee is emotionally immature. In other words, such a person will be unable to endure the new life if he/she is not able to control his/her emotions, as argued by Evans et al (2011). Large amount of work Assigning duties to an expatriate who is to work in a foreign country is a very complex task. This is because new responsibilities may emerge as actual work commences. This is likely to cause a scenario in which the expatriate will be overburdened with responsibilities he might not be able to cope with. Consequently, the expatriate may be forced to resign if he is not able to cope with the amount of work assigned to him (Forster 1997). Reducing expatriate failure Many organizations, and more especially human resource management, are confronted with diverse challenges in creating a team that can represent the company in its global business and other activities. Successfully addressing such challenges is crucial in designing the criteria for selecting the most suitable expatriates for a company’s foreign activities. Once a company decides to go global, it needs to assess its capabilities in terms of resources and manpower to move forward. It is at this point the company determines whether the expatriate is going to succeed or fail in the foreign business (Adler 2008). The following are some of the ways in which a company can reduce expatriate failure: Use of appropriate selection procedures It is the responsibility of human resource management to determine the kind of people required for the expatriate mission. It is important to highlight here that competence is very significant. It is important for the company to understand the context under which the expatriate is going to work and then relate those conditions to the selection criteria. This is important because the company will be in a position to determine who is fit or unfit to work as an expatriate. Culture, beliefs and even the language of communication are some of the key elements that human resource management must examine (Edwards and Rees 2011). There is always a possibility that the company may be venturing into a land where the language used is different from the one used at home. I believe assessment of the working environment will allow human resource management to understand the emerging trends in the relevant foreign country and the likely impacts on the expatriate team. In general, the selection method should be issue based. This means that only those individuals who possess certain skills will be selected to join the expatriate team, as illustrated by Stroh et al (2000). According to Mendenhall and Oddou (2001), expatriate success can be achieved in four ways. These are: self-orientation, others-orientation, perceptual ability and cultural toughness. According to the authors, self-orientation should be used to enhance the expatriate’s self-esteem, confidence and mental well-being (Bhaskar-Shrinivas et al 2005). On the other hand, others-orientation describes how the expatriate can be subjected to certain team practices which will help individuals to interact with other people, particularly those from the host country. It is through interaction that a person can engage others in the performance of certain duties. The ability to interact helps individuals to freely express their views, especially their views on different decisions made. Perceptual ability helps individuals understand why people behave differently. This is so important because it allows the expatriate team to behave in a way that will not offend others and which will enable them not to get offended by the actions of others. The authors also argue that cultural toughness can be used as a tool to train expatriates on how to adjust to the new trends faced while working in a new environment. Cultural toughness could be used as strategy to prepare the expatriate team in terms of culture and the approaches they should employ whenever they are faced with new cultural experiences. Training and employee development It is also the responsibility of human resource management to ensure that their expatriates possess appropriate skills and knowledge. Training should be provided to prepare managers for their new jobs in a different country. It should focus on helping managers to develop skills related to their careers and those that are relevant in the international context (Ferraro 2010). Apart from helping individuals sharpen their knowledge and skills on the company they work for, training should be geared towards understanding the general global context and what a competitive manager who operates in an international company should do. In the past, many companies have perceived training as an expense, and thus the initiative has often been reluctantly implemented. However, with increasing competition, the trend is shifting whereby employers are now seeing employee training as an investment rather than a cost (Mendenhall et al 2006). This is because employees can be moulded in any way through training to meet the company’s objectives. Training is even more critical when an employee is being prepared for a new assignment, particularly in a foreign environment. Training highlights some of the challenges an expatriate is likely to encounter, such as cultural differences, difference in the language of communication and a degree of discrimination by the locals. Management needs to carefully consider all these factors when training a team for an international venture. Cultural training should also be included in the expatriate training program. This is to assist the manager learn how to appreciate other people’s culture, particularly that of the hosting nation (Bolino 2007). Through cultural appreciation expatriates will be able to accommodate divergent behaviours and actions. Language training must also be included as one of the key components of training. This will ensure effective communication with the indigenous people. Understanding the language of communication will help the expatriate to relate and interact positively with the locals. Finally, I believe the use of practical training programmes could help an expatriate team to feel at ease in the new country. This will further help the expatriate family to manage issues at home and abroad when working on an international venture. References Adler, N. J. (2008). International Dimensions of Organizational Behavior (5th Edition). Mason, USA: Thomson South-Western. Bhaskar-Shrinivas, P., Harrison, D. A., Shaffer, M.A. and Luk, D.M. (2005). Input-Based and Time-Based Models of International Adjustment: Meta-Analytic Evidence and Theoretical Extensions. Academy of Management Journal, 48(2): 257-281. Black, J. S. (1998). Work Role Transitions: A Study of American Expatriate Managers. Journal of International Business Studies, 19(2): 277-284. Bolino, M. C. (2007). Expatriate Assignment and Intra-Organizational Career Success: Implications for Individuals and Organizations. Journal of International Business Studies, 38: 819-835. Briscoe; D., Schuler, R. and Tarique, I. (2012). International Human Resource Management: Policies and Practices for Multinational Enterprises (4th Edition). London, UK. Browaeys, M-L. and Price, R. (2011). Understanding Cross-Cultural Management (2nd Edition). Essex, England: Pearson Education Limited. Dowling, P., Festing, M. and Engle, A. D. (2008). International Human Resource Management (5th Edition), Cengage Learning: South Melbourne. Edwards, T. and Rees, C. (2011). International Human Resource Management: Globalization, National Systems and Multinational Companies (2nd Edition). Essex, England: Pearson Education Limited. Evans, P., Pucik, V. and Björkman, I. (2011). The Global Challenge: International Human Resource Management (2nd Edition). New York, NY: McGraw-Hill Irwin. Ferraro, G. (2010). The Cultural Dimension of International Business (6th Edition). New Jersey, USA: Prentice-Hall. Forster, N. (1997). The Persistent Myth of High Expatriate Failure Rate: A Reappraisal. International Journal of Human Resource Management, 8(4): 414-433. Harzing, A-W. and Van Ruysseveldt, J. (Eds.). (2011). International Human Resource Management (3rd Edition). London UK: Sage Publications. Mendenhall, M. E., Oddou, G. and Stahl, G. K. (2006). Readings and Cases in International Human Resource Management. UK: Taylor and Francis. Ozbilgin, M. (2005). International Human Resource Management – Theory and Practice. Hampshire, UK: Palgrave Macmillan. Stroh, L. K., Gregersen, H. B. and Black, J. S. (2000). Triumphs and Tragedies: Expectations and Commitments upon Repatriation. International Journal of Human Resource Management, 11(4): 681-697. Toh, S. M. and DeNisi, A. S. (2007). Host Country National as Socializing Agents: A Social Identity Approach. Journal of Organizational Behavior, 28: 281-301. Read More