...their business along with establishing their reputation globally. As to expand internationally, expatriation process is necessary for a company to establish themselves successfully internationally. One of the biggest challenges that companies are facing nowadays is the poor selection and development of expatriates. This paper is intended to discuss on those expatriation issues and the recommendations for the company to overcome those issues. In the first part of this paper, the literature review of the expatriation is discussed and the second part will be covered on the recommendations that are derived from the limitations that were identified from the literature review in part one. 1.1 Expatriation Due to the increasing business activities in today’s world, it is just not enough for a company to be successful in the national market only. Due to globalization, there have been many international investments and mergers and acquisitions. This globalization requires the companies to reflect on new measurements or estimations to stay focused and remain competitive in the global market such as the importance of knowledge transfer and international management development. This means the expatriation and expatriates have become a formula for every international management and companies that are looking forward to achieve their success in the global market (Nikolaeva, 2010). Expatriation is “the process of sending managers to another country to run a subsidiary of a multinational organization...
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...International Human Resource Management Att: Dr Alan Burton Jones IHRM Word Count: 2075 Table of Content 1.0 Introduction 3 2.0 Repatriation 4 3.0 Consideration of Issues with Repatriation 5 3.1 Financial 6 3.2 Family Problems 6 3.3 Organizational issues 7 3.4 Future Career Issues 7 4.0 Three Face Model of Repatriation Training 8 4.1 Pre Departure Training 8 4.2 Expatriation Phase 9 4.3 Repatriation Phase 10 5.0 Recommendation 10 6.0 Conclusion of report 10 7.0 List of Reference 11 Repatriation of Expatriates: overcoming barriers and understanding issues for the HR Practitioner 1.0 Introduction An increasing trend of MNC’s is taking part in an International context. According to a recent survey of MNC’s, there are over 850.000 subsidiaries of MNC’s operating worldwide, currently managing over 150.000 expatriates (Colakoglu & Caligiuri, 2008). According to Harvey & Moeller (2009), MNC’s must develop a pool of managers that has an increasing global mindset to cater for the increase of competition in an International context. Desired outcomes of expatriation can vary. One of the outcomes is the transfer of knowledge. Lazarova and Cerdin (2007) stresses that transfer of knowledge can assist the MNC to determine how their business unit is performing in the host country and identify needs associated with increasing performance and transfer of knowledge therein. This “transfer of knowledge may fail if the repatriation process is not being...
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...The Cost of Moving Abroad May 26, 2013 Abstract “Expatriates who qualify as “covered” are subject to the exit tax” (Bowman, 2012, para. 4). There are various succession taxes that the I.R.S. imposes on the estate and gifts make on behalf of expatriates. U.S. citizens must report their worldwide income to the IRS even if they are paying taxes somewhere else (Wood, 2012). Before deciding to ship abroad there are certain things a U.S. citizen can do to lower their overall tax liability. The Cost of Moving Abroad People thinking of retiring to their favorite tropical island may want to think long and hard about it. When deciding to move abroad one must consider not only the administration costs, but also the tax burden. In the past all a person had to do was turn in their passports. Now there is a complicated process in place to cover some of the loopholes that have been taken advantage of. If a person moves to another country and establishes dual citizenship they are still liable to pay U.S. taxes. Completely renouncing your citizenship has become a major head ache. Exit taxes and succession taxes will be the number one hurdle for the wealthy taxpayer to overcome. The Heroes Earnings Assistance and Relief Tax Act (HEART Act), created a category of expatriates called “covered expatriates”, who are subject to a different tax regime (Bowman, 2012). One must determine whether a potential expatriate will be a covered expatriate in order to determine the tax implications for...
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...Of Bears, Bumble-Bees, and Spiders: The Role of Expatriates in Controlling Foreign Subsidiaries Anne-Wil Harzing This article investigates the role of expatriate managers in multinational companies. We discuss three key organizational functions of expatriation: position filling, management development, and organization development. In the last function, organization development, international transfers are used as an informal coordination and control strategy through socialization and the building of informal communication networks. The article explores this role of international transfers in greater detail, but also discusses a more formal way in which expatriates can control subsidiaries. The following metaphors for these different control functions of expatriation are introduced: “bear” (formal direct control), “bumble-bee” (socialization), and “spider” (informal communication). A large-scale mail survey offers empirical evidence for the bear, bumble-bee and spider roles and shows under which circumstances they are most effective. Being aware of the different control functions of expatriation and the circumstances under which they are most effective can help managers to use expatriate assignments as a more strategic tool. n the field of International Human Resource Management, the management of expatriates, headquarters employees working abroad in one of the firm’s subsidiaries for a limited period of usually two to five years, often takes up a dominant role. This is not surprising...
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...International Journal of Contemporary Hospitality Management Emerald Article: Expatriation in the hotel industry: An exploratory study of management skills and cultural training Gina Fe Causin, Baker Ayoun, Patrick Moreo Article information: To cite this document: Gina Fe Causin, Baker Ayoun, Patrick Moreo, (2011),"Expatriation in the hotel industry: An exploratory study of management skills and cultural training", International Journal of Contemporary Hospitality Management, Vol. 23 Iss: 7 pp. 885 - 901 Permanent link to this document: http://dx.doi.org/10.1108/09596111111167515 Downloaded on: 29-09-2012 References: This document contains references to 43 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 2118 times since 2011. * Users who downloaded this Article also downloaded: * Judie Gannon, Angela Roper, Liz Doherty, (2010),"The impact of hotel management contracting on IHRM practices: Understanding the bricks and brains split", International Journal of Contemporary Hospitality Management, Vol. 22 Iss: 5 pp. 638 - 658 http://dx.doi.org/10.1108/09596111011053783 Hui Chen, Miguel Baptista Nunes, Lihong Zhou, Guo Chao Peng, (2011),"Expanding the concept of requirements traceability: The role of electronic records management in gathering evidence of crucial communications and negotiations", Aslib Proceedings, Vol. 63 Iss: 2 pp. 168 - 187 http://dx.doi.org/10.1108/00012531111135646 François Des Rosiers...
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...Trends in expatriationDuring the later half of the 20th century expatriation was dominated by professionals sent by their employers to foreign subsidiaries or headquarters. Starting at the end of the 20th century globalization created a global market for skilled professionals and leveled the income of skilled professionals relative to cost of living while the income differences of the unskilled remained large. Cost of intercontinental travel had become sufficiently low, such that employers not finding the skill in a local market could effectively turn to recruitment on a global scale.[citation needed] This has created a different type of expatriate where commuter and short-term assignments are becoming more common and often used by organizations to supplement traditional expatriation.[9] Private motivation is becoming more relevant than company assignment. Families might often stay behind when work opportunities amount to months instead of years. The cultural impact of this trend is more significant. Traditional corporate expatriates did not integrate and commonly only associated with the elite of the country they were living in. Modern expatriates form a global middle class with shared work experiences in multi-national corporation and working and living the global financial and economical centers. Integration is incomplete but strong cultural influences are transmitted. Middle class expatriates contain many re-migrants from emigration movements one or two generations earlier...
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...THE CONCEPT OF INTERNATIONAL MANAGER, ITS ROLES/FUNCTION AND CONTRIBUTION 4 THE CAPABILITIES AND QUALITIES OF INTERNATIONAL MANAGERS 5 THE CONCEPT OF EXPATRIATION 6 CHALLENGES FACED BY INTERNATONAL MANAGERS ON INTERNATIONAL ASSIGNMENT 7 CONCLUSION AND RECOMMENDATIONS, REFERENCES 1. INTRODUCTION In this time of globalization, the concept of international human resource management has come to be an important aspect for human resource manager in multinationals, in order to have a worldwide vision of managing their expatriates effectively outside their PCN/HCN. The aim of this report is to analyse the statement which says that Effective international managers were said to be those who were flexible, open-minded, adaptable, speaking in foreign languages, and making friends with those of many nationalities (Smith, 1992:46). The report also provides necessary conclusion and recommendation which international managers are to adopt to ensure that employees works more effectively. There are differences between countries yet expatriates are effective in there works because of the role of international manager to see that the expat are successful. This analysis will be done looking at the different roles and attributes of international managers, the concept of expatriation, challenges faced by international manager and the strategy used to ensure that managers are fit to their roles. One of the contributions/roles of International human resource...
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...Student's name Instructor's name Course name Date Human Resource Management in Multinational Organizations A Preliminary Research on Self-Initiated Expatriation as Compared to Assigned Expatriation Human resource management in multinational organizations is complex due to the cross-cultural and international aspects related to its nature. This article examines the phenomenon of 'expatriation': choosing to leave one's own country in order to live or work in another, usually for a long period of time. Multinational organizations require a certain level of staff relocation in order to improve their knowledge of emerging markets as well as maximizing their talent resources. In addition to assigned expatriates, meaning those moving to another country following an assignment from their workplace, the article refers to "self-initiated expatriates, meaning people who choose to move to another country on their own. Human resource needs for both kinds of expatriates are unique, and may differ from each other. Self-initiated expatriates may exhibit more motivation to live in a different country and uproot their family for a long period of time, and this motivation may facilitate an easier transition, therefore being less demanding for the human resource management (Mo and Jian-Ming 170-172) Workplace flexibility and the changing nature of work: an introduction This paper examines articles referring to how the changes in the work environment require flexibility on behalf...
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...References 10 1.0 Introduction With the fast pace of globalization businesses are recognizing the need for selecting and hiring expatriate managers. It has become a key criterion for organizations in order to compete effectively in globalized environments. (Altman, 2012) describes the value of international assignments as conducting businesses and technological knowledge, developing personnel, enhancing and facilitating communication channels between headquarters and subsidiary along with introducing a synergized organizational policy throughout the organization. Expatriation is not just a milestone for individuals to explore their potential but has also raised the economic output levels of businesses in terms of increased productivity. In the article written by (Harris and Moran 1996) they state that global managers and executives have to examine and manage the cultural differences that take place in expatriation and develop the skills that are required to participate effectively in a global environment. In the research done by (Wan, Hui and Tiang 2003) they state “An international assignment is the single most powerful experience in shaping the perspective and capabilities of effective global leaders”. Further in the...
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...Expatriates or expats are employees that are temporarily sent overseas either temporarily or permanently for international assignment by their company. The word is derived from the Latin terms ex ("out of") and patria ("country, fatherland"). Expatriation of workers involves many factors and risk among them are the need for greater operating unit diversity, more external stakeholder influence, higher levels of risk exposure and more personal insight into employees’ lives and family situations. To operate internationally, HR must engage in activities not necessary in a domestic environment, mainly activities such as international taxation, international relocation and host government relations by contacting with foreign governments for acquiring work permits, visas etc. The salary of internationally assigned personnel often consists of standard salary and monetary benefits such as cost of living and non-monetary incentives such as health care, education expenses, and housing. Some companies will even completely cover the cost of expatriate children's education, even at relatively expensive international schools, while other, usually smaller companies, encourage families to find local schooling options. One of the greatest disadvantage of using expatriates is the possibility of expatriate failure. Expatriate failure occurs when an expatriate returns to her home country prior to finishing her international assignment, or if the expatriate resigns from her job before completing...
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...Jaguar or Bluebird Case Study International Human Resource Management Jaguar or Bluebird Case Study Mark Chan had spent the past six years working overseas and as a bachelor he had enjoyed the opportunity to travel and was very comfortable living and working overseas. As with most young men he got married and felt that it was time to go back home to Singapore and start a family. Mark’s past international experience helped him to get the job at Energem, a diversified, global company with market-leading positions in a number of industries. Headquartered in the UK, Energem employs over 60,000 people worldwide. His research had revealed to him the company valued international experience. After just one year Mark was offered a job change and a promotion that offered many opportunities for him to shine. By the end of his third year at Energem Mark was offered a three-year international assignment opportunity at the corporate headquarters in London. The job was another promotion and he would now be part of the company’s senior management. This was a great opportunity and with the expatriate benefits package Mark’s wife Linda would not have to work and could stay at home with their two children who were still very young. She could always go back to work as a private banker when they returned to Singapore. This assignment would be a big stepping stone for Mark’s career when he returned. Mark had very little trouble settling into his new position, his past experience...
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...As introduction it needs to be said, it is already hard for family and family life, if someone has a stressful job as for example as a company leader, where the workload is larger than in a 40-hour job, but the situation can get even worse when an international assignment plays a role in the work life. No matter what type of assignment comes into play, there are several advantages and disadvantages, especially for the family of the person that has to go abroad for work, what should be discussed in this essay. When we first go into deep about expatriation, the major question to be asked is whether the family is also moving abroad or not, depending on the planned length of the assignment. In both cases several issues have to be faced. If the family is also moving, a hard task is to organize everything at home and at the host country, regarding housing, work permits, visa, school for kids, and so forth. When the company of the assignee supports the family as a whole, it can be a lot easier to get over some critical issues as for example housing or school for the kid. The situation for the family members can be helped, when an organization specialized on helping international assignees is considered. The very best advantage of this case is the family can stay together and is not separated for some years. When the wife and kids would stay at home, from my sight of view the relationship could be extremely negative affected. Let us just imagine the international assignment is for about...
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...Q1-write a one-page outline listing three or four recommendations you would make with respect to Aramex career development program. In your recommendations, explain how you would assist employees to move up the ladder, growing from operational jobs to handling different managerial positions and responsibilities? Aramex provides comprehensive logistics and transportation solutions. It starts since 1982 as an express operator. Aramex became global brand rapidly. It is one of the biggest transportations companies. Aramex has over 8,600 people work for them in over 310 locations all around the world. Aramex employees should be creative, innovative, and take risks in order to improve themselves and the company’s image. Aramex motivate their employees to create their own opportunities within the organization. Aramex created a career development program per function for their employees to reach their standers. Our recommendations to the human resource manager is to give the employees more training that is related to their job, so if they get promoted and become managers they will know how to deal with the stress and make the right decision in the right time. Therefor the employees should be well trained to be promoted. The human resource manager should give the employees the best work environment. So the employees will show the managers what they have from skills and knowledge and to be creative. The best work environment will motivate the employees to work harder and that...
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...Case Eurochem Part 1: Description The (Vandenbergh) director of marketing from Eurochem head office had expatriated Paul to working in China. Paul is an employee who with good qualities and working ability for the job. Once Paul working in China, soon he found out the problem which the company have too much credit from the customers leads to the company current situation with only default. Cultural difference has been a big issue between Chinese way and Belgium way of doing business. Paul doesn’t really appreciate with Wu and Li’s “guanxi” way of managing the customers. He thinks Chinese subsidiary spent too much time and money on invest the stable customers. He thinks they should change their strategy of doing business and contain the customer relationship. Instead of visiting and drinking tea with the old customers, is better to using telephone to contact with the existing customers and spend more time for developing the new customers. Paul thinks this way will be also work in Chinese market because it has been very successful in Europe and America. At the beginning Olsen think Paul’s way is not really effective and suggest him to get some advice and help from Wu and Li because of their old experience. Therefore, He called Vandenbergh for complaining about paul’s behavior, but Vandenbergh insist that Paul is the best person for in charge it and he has full of confidence with Paul. After Olsen discussed with the president of Eurochem, he got a big encourage and support...
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...their stay abroad in order to avoid cultural shock and thus should be addressed with specific communication. The literature review articulates global brands and advertising with cultural shock, explained on the basis of Trompenaars and Hampden-Turner’s dilemmas’ theory. The qualitative method used in this research were 53 in-depth interviews. Results demonstrated that expatriates relay on well-known brands to adapt to new environments when they are abroad and that specific advertising help them to reconcile dilemmas. Key words: Global brands, advertising, expatriates, cultural shock Introduction Economic and social factors are working to increase global competition and global operations, and subsequently an acceleration of traffic in expatriation and repatriation. Johansson and Ronkainen (2005) state that research shows that one of the most common features of a globally integrated marketing strategy is the adoption of one brand name around the world, whereas Callow and Schiffman (2002) talk about how advertising interpretations are dependent on cultural factors of the viewer. Therefore, the present paper is relevant because it demonstrates that particular attention should be drawn to expatriates during their sojourn abroad. While struggling to adjust both as individuals and professionals, expatriates should deal with uncertainty and risk taking. They should also face different behavioral patterns, which could be explained by the more individualistic or more communitarian orientation...
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