Running head: Week 8 Assignment 2: International Assignments
12
Week 8 Assignment 2: International Assignments
Week 8 Assignment 2: International Assignments
Schwanna Weston
Professor Tara McNealy
Global Human Resources Management
May 27, 2015
International Assignments
Introduction
The multinational firm in which I am HR director is called Real International Boutique, Inc. or for short RIB. The organization is a US based boutique with thirty retail store in the northeast is of the US, and are looking to expand retail locations globally to Italy. My goal as HR director will see to it that RIB hires three business developers as expatriates to implement, launch and open ten new retail stores and establish global markets in Italy, with an five year project deadline. My paper will include four to six components that the pre-departure training will need to cover and a rationale for the use of using the training components in question, the proposal of three criteria that management will use to assess the performance of expatriates working abroad. In addition, an implemented proposal, along with examples of the fundamental ways in which these performance requirements have improved performance is included.
The recommendation of a recruiting and selection strategies that I believe the firm should use when offering international assignments with rationale are addressed. The international assignment paper will also cover the comparison and contrast of two staffing alternatives for foreign operations at RIB. The selection of the staffing alternative that I believe to be the best fit and analyzing the importance of providing a high-quality mentoring system for international assignees are outlined. Lastly, generation of an example, of a high-quality mentoring system for international assignees to support my analysis and suggestion of the manner in which I plan to measure return on investment (ROI) for international assignments.
Components of Pre-Departure Training
Given the primary selection criterion for most MNEs is technical ability of existing employee, it is not surprising to find that most of the literature on expatriate training is devoted to expatriate departure training activates that are mainly concerned with developing cultural awareness. There for once an employee has been selected for expatriate position, pre-departure training is consider to be the next critical step in attempting to ensure the expatriate’s effectiveness and success abroad, particularly where the destination country is considered culturally tough. Effective cultural training, its advocate, assists individuals to adjust more rapidly to the new culture. The limited, predominately US-based, research into this area reveals that a large number of US multinational s have been reluctant to provide even a basic level of pre-departure training, though this is now changing. Particular inters in the area began with Tung’s study on expatriation practices, including.
Running head Week 8 Assignment 2 International Assignments.docx
1. Running head: Week 8 Assignment 2: International Assignments
12
Week 8 Assignment 2: International Assignments
Week 8 Assignment 2: International Assignments
Schwanna Weston
Professor Tara McNealy
Global Human Resources Management
May 27, 2015
International Assignments
Introduction
The multinational firm in which I am HR director is called Real
International Boutique, Inc. or for short RIB. The organization
is a US based boutique with thirty retail store in the northeast is
of the US, and are looking to expand retail locations globally to
Italy. My goal as HR director will see to it that RIB hires three
business developers as expatriates to implement, launch and
2. open ten new retail stores and establish global markets in Italy,
with an five year project deadline. My paper will include four
to six components that the pre-departure training will need to
cover and a rationale for the use of using the training
components in question, the proposal of three criteria that
management will use to assess the performance of expatriates
working abroad. In addition, an implemented proposal, along
with examples of the fundamental ways in which these
performance requirements have improved performance is
included.
The recommendation of a recruiting and selection strategies that
I believe the firm should use when offering international
assignments with rationale are addressed. The international
assignment paper will also cover the comparison and contrast of
two staffing alternatives for foreign operations at RIB. The
selection of the staffing alternative that I believe to be the best
fit and analyzing the importance of providing a high-quality
mentoring system for international assignees are outlined.
Lastly, generation of an example, of a high-quality mentoring
system for international assignees to support my analysis and
suggestion of the manner in which I plan to measure return on
investment (ROI) for international assignments.
Components of Pre-Departure Training
Given the primary selection criterion for most MNEs is
technical ability of existing employee, it is not surprising to
find that most of the literature on expatriate training is devoted
to expatriate departure training activates that are mainly
concerned with developing cultural awareness. There for once
an employee has been selected for expatriate position, pre-
departure training is consider to be the next critical step in
attempting to ensure the expatriate’s effectiveness and success
abroad, particularly where the destination country is considered
culturally tough. Effective cultural training, its advocate, assists
individuals to adjust more rapidly to the new culture. The
limited, predominately US-based, research into this area reveals
that a large number of US multinational s have been reluctant to
3. provide even a basic level of pre-departure training, though this
is now changing. Particular inters in the area began with Tung’s
study on expatriation practices, including the use of pre-
departure training programs.
Her results showed that US multinationals tend to use training
programs for expatriates less frequently than European and
Japanese firms (32 per cent compared to 69 per cent and 57 per
cent, respectively). The US attitude to the provision of pre-
departure training appeared to persist through the 19080s. For
example, a 1984 study of one thousand US multi-nations found
that only 25 percent offered extensive pre-departure training
programs; while a 1989 study of US firms found that only 13
percent of respondents indicated that they would offer
expatriates and pre-departure program. Among the various
reason cited by firms in these studies was that top management
did not believe pre-departure training was necessary of effective
So, while the potential benefits of cultural awareness training
are widely acknowledge, such training was downgraded or not
offered by a large number of US multinational.
(Dowling/Festing/Engle, Introduction, 2013, pp. 176-178)
RIB will need the following four pre-departure training within
the affective approach:
· Area or cultural briefings
· Lectures, movies or books
· Use of interpreters
· ‘Survival- level’ language training
As HR manager, it is determined that the expected level of
integration is low and the degree of similarity between the
expatriate’s home culture and the host culture is high, the
length of training will be less than a week to provide the
appropriate level of training rigor. (Dowling/Festing/Engle,
Introduction, 2013, p. 179)
Performance of Expatriates
The three criteria that management will use to assess the
performance of expatriates of RIB working abroad are as
follows:
4. Language and Culture Proficiency
· Global assignments often serve the purpose of developing
expatriates' global orientations through the development of their
foreign language skills and cross-cultural knowledge (Black,
Gregersen, & Mendenhall, 1992; Dinges, 1983; Finney & Von
Glinow, 1988). Language and cultural proficiency because it
enables the expatriate to become batter able to communicate
during a global assignment. An example can include the fact
that the expatriate will have the ability to effectively
communicate with counter partners during the global
assignment, therefore improving performance
Establishing Good Relationships with Host Nationals
· In order to facilitate the global integration goal of MNEs,
expatriates need to develop good rapport or interpersonal
relationships with customers, suppliers, colleagues, host country
government officials, ' members of the host community, and so
on (Abe & Wiseman, 1983; Black, Gregersen & Mendenhall,
1992; Cui & van den Berg, 1991). An example can include the
fact that the expatriate will have the ability to promote business
relationships during the global assignment with negotiating
business contracts in Italy for RIB therefore improving
performance
Fostering Commitment to the Organization in the Subsidiary
· Many expatriates are expected to be organizational
"missionaries" of the companies' goals, objectives, values, and
so on, in the foreign subsidiaries to integrate the corporate
culture worldwide (Kobrin, 1988). An example can include the
fact that the expatriate will have the ability to cater to the needs
of RIB and conducting business while remaining loyal to the
organization at all times during the global assignment while in
Italy.
Selection Strategy
Growth in Global companies today demands the increasing need
of recruitment and selection process. The number of expatriates
has increased over the last 30 years due to increase in the
number of mergers and acquisitions. Recruiting an expatriate is
5. mostly associated with increase in the salary range,
improvement in hierarchal levels. But the facts that there will
be drastic change in the culture change in social life, career
risks, are all very important aspects to consider when planning a
recruitment process in an organization.
The role of a HR manager is to enable individuals to achieve
organizational goals and objectives. To ensure a successful
gain, they need to know who these people are, where they are
from, how they can be developed for personal fulfillment and to
achieve organizational goals, and the impact of external
constraints. All these come together and demand the need of
formulation of HR functions in an organization.
They are involved in the development and implementation of
HR strategies and policies and various people management
activities like human resource planning, talent management,
knowledge management, recruitment & selection, learning and
development, reward management, employee relations, health
and safety, welfare and any other matters related to employment
relationship. Ulrich (1998) pints out that: ‘The activities of HR
appear to be and often are disconnected from the real work of
the organization.’ He believes that HR ‘should not be defined
by what is does but by what it delivers’.
It is often a face there are a limited number of employees
willing to travel within the organization. Considering other
specifications like their past work experience, technical skills,
ability to be flexible with teams, job requirements and period of
expatriation as well. In many cases, Human resources team
tends to select a candidate who is willing to take the overseas
opportunity. Lack of effective selection process and emphasized
technical requirements listed out are the major reasons for
failure in the process.
To handle successful HR operations an organization need to
consider both internal and external contexts that has great
influence on the business. External contexts could be including
Political, Economic & Social & Technological contexts.
However many organizations today operation in a global
6. context, that direct HR managers to develop an international
strategy considering the cultures and values.
One of the key concerns that often lead to failure in recruiting
an employee in cross cultural context is related to family
concerns. According to Tung (1987) and Forster (2000) the
inability of the spouse in adopting foreign environment and
language issues are the general causes of a failed expatriate.
Bonache & Brewster (2001) illustrated the survey conducted by
Windham International and the National Foreign Trade Council
(1999) is mentioned that a large number of international
assignments are turned down in between the time due to
personal family and spouse issues.
It is also important to understand that a successful domestic
operation with well framed policies and procedures leads to
improvement in handling international operations. Companies
need to show strong need for a proper recruitment and selection
processes. RIB will adopt the following recruitment and
selection strategy for expatriates.
Job analysis
· Job analysis is often referred as the information on which two
significant recruitment documents are based: job and person
specifications. It involves in collecting systematic information
about the job from current incumbents and/or their colleagues
(Newell and Shackleton, 2000).
Job Descriptions
· A well written job description plays a very important in a
cross-cultural context. They are understood as written statement
that describes the duties, responsibilities, required
qualifications, and reporting relationships of a particular job.
Job Descriptions are the further steps of Job Analysis and
allows the organizations to perform better.
Person Specification
· Crafting person’s specifications gives the HR team a chance to
understand on what the organization really need from the job.
Most often employers rush to hire person to fill in the position
but misses to find the need.
7. Profile of expatriate’s qualification
· According to Harrison there are certain traits and
characteristics that are identified as predictors for expatriate
assignment successful. It is not that without these traits are
guaranteed to achieve successful expatriation but without them
the chances of failure is higher. (RECRUITMENT &
SELECTION OF INTERNAL MOTIVATED EMPLOYEEE,
2014)
Staffing Alternatives for Foreign Operations
There are four approaches that MNE can use for international
staffing and are as follows:
· The first approach is Ethnocentric. In this approach, few
foreign subsidiaries have decision making authority. Key
positions held by headquarter personnel and are manage by staff
in home country HCN.
· The second approach is Polycentric. In this approach, each
subsidiary is a distinct entity with some decision-making
authority. Subsidiaries are managed by location nationals.
· The third approach is Geocentric. This approach recognizes
that each subsidiary makes a unique contribution to the whole.
It is accompanied by worldwide integrated business practices,
where ability is favored over nationality.
· The fourth approach is Regiocentric. This approach is similar
to the geocentric approach with differences of using a wider
pool of managers but in a limited way. Staffing may move
outside the country, but to outside their region.
As HR director of a RIB the staffing alternative I adopt with
staffing a subsidiary in Italy would be the Polycentric approach.
My rationale includes that fact that employing HCN’s
eliminates language barriers, and RIB can avoid the time and
expenses of relocating employees. Examples of successful
implementation of this approach are that the subsidiary can
embrace cultural awareness training programs. In addition,
HCN’s are also less expensive and with continuity in
management of foreign subsidiaries and the turnover rate is low.
The manner in which organization can locate qualified
8. candidates when operating MNE’s would be to conduct
evaluations and assessments to assure a fit from RIB candidate
pool. This can include an assessment of their personality and or
cultural awareness. It will be important for the organization to
determine how well candidates will be able to deal with change
and uncertainty. (Strayer University Blackboard, 2014)
Mentoring Program
Mentoring is on strategy used in repatriation programs to help
keep the expatriate in the loop. Mentors are usually a senior
person from the sending work unit and one that knows the
expatriate personally. The assistants I alleviating the sense of
“out of sight, out of mind” that can occur while in an overseas
assignment. The information flow between the mentor and
expatriate is a two-way street as the expatriate can share the
information regarding foreign location and the mentor can share
change of personnel and company policy and structure.
A Mentor relationship is a managed tool that is used for:
· First, maintaining contact with the expatriate throughout the
assignment.
· Second, ensuring expatriates are kept up to date with
developments in the home country.
· Lastly, ensuring expatriates are retained in existing
management development programs.
An addition benefit of mentoring is the mentor can alert the
firm of the imminent return of the repatriate and thus affects the
re-entry position. (Strayer University Blackboard, 2014)
(ROI) Return on Investment
A global assignment can be one of the most powerful ways of
impacting the perspective and development of employees. It can
also be a significant corporate investment; therefore, the need to
assure an assignment’s return on investment (ROI) is essential
for Multinational Companies (MNCs). However, despite the
economic environment of cost cutting and risk mitigation, an
assignment’s ROI is not always calculated and used as a tool to
assess expatriate costs among global firms. Defining
9. Assignment ROI McNulty and Tharenou (2004) have defined
expatriate ROI as “a calculation in which the financial and
nonfinancial benefits to the firm are compared with the
financial and nonfinancial costs of the international assignment,
as appropriate to the assignment’s purpose.”
As HR director, I will lead RIB in the direction of measuring
and calculating an assignment’s ROI through the following:
· Understand the intent of the assignment, i.e. how the purpose
of an international assignment is linked to RIB’s overall global
strategy;
· Include both tangibles and intangibles when calculating and
comparing costs and benefits.
A one-size-fits-all ROI equation does not exist, but there are
some concrete factors which can lead to a more accurate ROI
calculation and positive impact on return:
· Accurate assignment cost tracking
· A competitive, cost-effective policy as a road map for tracking
costs
· A policy that not only fits RIB’s mobility needs, but is
consistently implemented across the organization (SIRVA,
2014)
Conclusion
The methods outlined in this paper will allow me to become
more of a strategic with RIB. The organization is a successful
US based fashion apparel company with thirty retail store in the
northeast is of the US, and is looking to expand retail locations
globally to Italy. My goal as HR director will see to it that RIB
hires three business developers as expatriates to implement,
launch and open ten new retail stores and establish global
markets in Italy, with an five year project deadline.
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