Student Name: Faiza Fatima (TP022124)
Module Title: International Human Resource Management
Module Code: BM025-3-3
Assignment Description: Individual Assignment
Intake Number: UC3F1310 IBM
Submission date: 9th January 2014
Lecturer’s Name: Han Kok Siew

Table of Contents 1.0 Introduction 3 2.0 Technical Ability 4 3.0 Cross-Cultural Suitability 5 4.0 Family Requirements 6 5.0 Country/ Cultural Requirement 7
6.0 MNE Requirements………………………………………………………………………………………………………………………8
7.0 Language Barrier………………………………………………………………………………………………………………………….8 8.0 Conclusion 9 9.0 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 research the important characteristics of global leaders has also been analysed to have the required aptitude, knowledge and skills to maintain the global presence of the organization in the market. (Wan, Hui and Tiang 2003). The leadership developed through acquiring eminent expatriate manager’s acts as a milestone to achieve global core competency in all multinational corporations.
In the following report six factors would be analysed that are used in the expatriation selection process along with the relevant examples applied to each factor.

2.0 Technical Ability
With the emerging new technology companies lay significant importance on hiring employees with multi skills while fulfilling their recruiting requirements. There are several recruitment agencies that have undertaken this task that act as stepping stones which helps to get the required technical job that matches with the individual’s skills and personality. One example of such an agency is IMR- international manpower resources. An example that could further illustrate the requirement of technical ability is one of the major car manufacturer company Toyota that has developed the production line workers with no technical qualifications to become multi skilled maintenance technicians to be able to meet the challenges of lean manufacturing. In an article named (human resource management international digest 2010) Toyotas senior manager explains “When TMUK was established in the early-1990s we recruited experienced maintenance members,” explained Richard Finchett “These recruits were trained in Toyota-specific maintenance disciplines and equipment, enabling them to fulfil the role of multi-skilled maintenance members.” Toyota has many expatriates operating in different parts of the world and the company’s maintenance department plays a significant role in supporting Toyotas just-in-time manufacturing operations. When the production began the company realized the impact of national maintenance-skill shortage which resulted in a massive turnover and external hiring becoming complex. The company realized the need for multi skilled maintenance members in the newly introduced lean manufacturing environment. It challenged the expectations and experiences of the single skill maintenance recruits joining the company. Toyota therefore provided on and off job training to the employees. Each department had a structured development map with the technical training delivered to fulfil business requirements and also asses in individual career development. They attempted to develop their workers who already had the experience and therefore strengthened the maintenance capability and flexibility along with minimizing employee turnover. (Human resource management international digest 2010). Hence the technical ability of the expatriate manager not only upgrades the knowledge of them as an individual but is also a key criterion for organizations build a reputed status in the global market.
Another example of the importance of technical ability of expatriate manger is given an article on the Yas island project done by the international architect Benoy. To start up the project Benoy needed more workforce who were skilled and the recruitment time allotted was short. To achieve the rapid expansion Benoy subscribed to the CAD smart computer assisted design skill-assessment software that helped to assess the CAD skills of the potential employees at interview stage. The software focused on the individual’s ability to understand industry-specific terminology. This assessment was also taken place in Hong Kong and London. With the results achieved cultural difference was also identified with the different results produced. Time taken to complete differed from offices and cultures. The software provided measurable differences for staff appraisals hence was also used for training and development which allowed targeted training strategies to be incorporated making CAD useful and also nurtured the less-experienced staff within the company. (Human resource management international digest 2008). With this case study however it is derived that technical know-how of expatriates is considered to be an asset to businesses and for individuals to be able to cope up with the challenging demand of the tasks and reach their own set targets. Most companies nowadays provide training to their employees in order to strive through the competitive market and bench mark the quality of the product or the service provided by the organization.

3.0 Cross-Cultural Suitability
Cross cultural management is identifying the differences in cultures that prevail in the changing demographics of the world and the effects it has on businesses in different parts of the world and regulating these differences by learning and incorporating it to aid organizations geographically. The challenge with this factor is to align organizational culture with the local and try to merge with one another. Harmony of these two together is a strategic criteria for the survival of organization.
As mentioned in the article (international journal of manpower 2000) the various aspects of cross cultural training is discussed. When expatriates are sent over to different countries, their confrontation with the different culture is called the ‘cultural shock’. It is how the expatriate reacts to the unpredictable surrounding. In order to overcome this expatriates are given cross cultural training. This training differs to people sent depending on their objectives, the demand of their responsibilities, the duration of their stay and their past experiences. “The effectiveness of the various types of training will naturally depend to some extent on the time and resources available for undertaking them, the quality of trainers, and the possibilities for in-country training”. (International journal of manpower 2000) .The types of training given are cultural awareness interpersonal training and practical information.
In the research done by (Mansour and wood 2010) on Moroccan industry and cultural shocks faced by the Americans, French and European has been compared and have concluded their result based on their findings. It has been deduced from their research that no tuition for language was given to the expats and hence it became really difficult for the Americans and Europeans to combat the shock as the main language used was Arabic which is a difficult language to learn and requires additional time. The French received the training in their own language and they could get through since most people in morocco were aware of the language. The American and Europeans relied on books, websites to learn and grasp the Moroccan culture and environment. Further it was also found that the Europeans were given a more insight into the cultural characteristics of Moroccans than the Americans and there were no follow ups or post arrival training. “Culture shock has been identified as the source of many stress-induced reactions experienced by expatriates in confronting the norms and culture of a host country”. (Mansour and wood, 2010). In this research there was cultural shock regarding the language barrier was faced mostly by the Americans and cultural shocks lay a bad impact on businesses since adopting to the culture of the host country will instigate the expats to work up to their full potential. The three adjustment factors work, general and interaction has to be in sync to reduce these cultural barriers so that it can have a positive impact of time spent with the host national inside or outside the work. It is therefore very crucial for the expat manager to be able to sustain and adjust to the culture in order to bring the maximum benefits to the organization.

4.0 Family Requirements
With expatriation not only an individual faces the pressure of being in an unknown country but also the families have to go through the tough challenge of handling the change. The families have to constantly strive for emotional homeostasis which is the balance between acknowledging the gains achieved through expatriation and the losses or the difficulties faced with it. It is vital for organizations to offset the negative impact on the families by identifying the need to fulfil their comfort or satisfaction levels. In a research done by (Makela, Suutari and Mayerhofer, 2011) where they have carried out a study on the impacts on the families as well as on the trend of female expatriation. They mention that the role of partner or family can create both a negative as well as a positive impact on the work life balance and hence this balance is one of the key challenges that tags along with international careers. Balance between these two life spheres has been defined as “satisfaction and good functioning at work and at home with a minimum role conflict” (Makel, Suutari and Mayerhofer, 2011). This balance was mainly concerned between work and individual but there’s a broader perspective to it in today’s world. In this research a gender based study is done where the impact on female expatriate in studied in depth. According to the research it has been discovered that women usually do not will to take up international assignments as mentioned in the research that dual career problems and disruption to children’s education are major barriers to future international mobility. However this problem area of expatriation has been are on the stages of being resolved by organization who take up measure overcome these challenges by enrichment which consists by giving individuals opportunities to go on holidays , exercising friendly environment in the organization to maintain a constant pleasant contact with colleagues enhancing work effectiveness. Some organizations often attempt to call the expatriate along with their family to settle in which reduces the friction caused between work life balances.
In another research by (Makela , Kansala and Suutari , 2011) the dual career expatriates are analysed and a qualitative research has been done on the role of spouses on individuals. The long working hours, travelling intrude for dual career couples and also causes a lot of stress on the families. It has been seen that international assignments are challenging career situations and spousal support should be taken under consideration when training and preparing the expatriate is going on. By the research done by (Makela, Kansela and Suutari 2011) it has been concluded that if spouses are treated equally as an important resource from the very beginning it will erase the drawback of expatriate not giving their best in their performance. Corporate programs that would assist supporting couples which would provide counselling, covering the costs for finding a job and assist in practical work related arrangements would be a key solution to such issues and if spouses are in the same country giving extra benefits like traveling, communication and rental charges as fringe benefits would work as practical measures to combat this issue.

5.0 Country/ Cultural Requirement
Change is a constant process and with businesses going global a lot of issues needs to be tackled with care. With expatriation that has become a trend in this era of change perspectives needs to be looked at with a global vision. In a research by (Harris and Moran 1996) they state that ‘Global skills and perspectives cannot be viewed as a specialty or segment of business today, they must be an integral part of an enterprise, totally integrated throughout all operations.’ The cultural differences must be understood clearly by the managers and communicated throughout the organization. It is important for managers to develop skills and train the individuals to participate effectively in globalized environments. In this research the different cultures of few countries have been listed. For instance in Saudi Arabia in the first business meeting they do not begin with conducting business but utilises the time to become comfortable and build trust between one another. Asian managers usually prefer family and friends to be hired while western ones use impersonal measures of recruitment. In Indonesia, shaking hands with either genders are acceptable but using of left hand to receive or give a gift in not accepted where as in Saudi Arabia shaking hands with opposite genders is not preferred and for some cultures bow is preferred. These cultural differences need to be understood and researched and communicated when hiring expatriates so that they become aware of the practices and avoid cultural shock that causes a negative impact on the organization as well the individual.

6.0 MNE requirements
The MNE can be termed as the most important organization in the world. Globalization itself is driven by the construction of these MNE’S. Internationalization has created the technique for the eradication of boundaries between the countries in today’s world and therefore has given the space for MNE’s to get widespread across the world in exploration of potential opportunities for growth and explore new markets. In multinational enterprises there are different key factors taken into consideration with expatriation. In the research done by (Shih, Chiang and Kim, 2005) they highlight the performance management of expatriates in different national regions. Organizations now plan goal setting and incorporate this throughout the organization MNE’s now practice performance management system to assess the work of individuals. This system creates an influence on the behaviour of employees and latter aids to the development of future human resources. The nature of the expatriate’s job is taken into account and the performance is tailored according to that. The nature of the job given to the expatriate becomes the key determinant factor here and performance is measure on that basis.

7.0 Language barrier
Communication is the most essential key to run business successfully. With expatriation becoming popular one cannot deny that the increase in communication necessity and increasing linguistic diversity has made it an important criteria to raise the language barrier and run businesses in the most productive manner. (Harzing and Feely , 2008) after a research on the effect of language barrier on businesses deduce that with language barriers there could be problems with communication which has a direct impact on parent company when they are confronted with communication difficulty with their subsidiaries. Strategic decision like business growth are delayed and when selecting a country they may only target based on parent language competence and methods of entry are altered to avoid the linguistic trauma that are associated with acquisitions. They also highlight that expatriates don’t feel like a part of the organization if they are well versed by the language of the country and can cause problem in as well as outside of work. With this we can conclude that overcoming language barrier is important to raise the gap between the managers and subordinates and to create a more comfortable environment in the organization this is a requisite.

8.0 Conclusion
In this report we have analysed six factors that needs to be considered when expatriate selection is taking place. Working on these six factors the technical ability which is the individual’s skills to perform the operation can help organization develop in terms of productivity. Providing special training and making efforts to make expats multi skilled will become an asset for an organization in the long run. The cross cultural stability will assess the organization to avoid cultural shocks faced by expatriates and this will enable the expatriates to give their best to the organization and reduce the turnover in business. When organization will regard the whole family of the expat as a driver for success and provide the necessary benefits that will help minimize the stress caused to the expats family and give fringe benefits in return will help them achieve more expatriates in their organization. Understanding the culture of the country will give a more specific insight and will also help in aiding to reduce the cultural shock and adjust quickly in the business. MNE requirement will develop a more dedicated workforce and gain loyal expatriates in the organization. The knowledge transfer tacit or explicit both forms will help organization sustain the competition in market. Lastly the language barrier will help in exercising effective communication throughout the organization which is the most important criterion for businesses to operate on successful grounds.

9.0 References
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Benoy recruits bring Ferrari World to the desert: Software highlights technical skills of existing and potential employees. 2008. 16 (5), pp. 15-17. Available from: doi: 10.1108/09670730810888447.

Harris, P. and Moran, R. 1996. European leadership in globalization. 96 (2), pp. 32-41. Available from: doi: 10.1108/09555349610111848.

Harris, P. and Moran, R. 1996. European leadership in globalization. 96 (2), pp. 32-41. Available from: doi: 10.1108/09555349610111848.

Harzing, A. and Feely, A. 2008. The language barrier and its implications for HQ-subsidiary relationships. 15 (1), pp. 49-61. Available from: doi: 10.1108/13527600810848827.

Mäkelä, L., Känsälä, M. and Suutari, V. 2011. The roles of expatriates' spouses among dual career couples. 18 (2), pp. 185-197. Available from: doi: 10.1108/13527601111126012.

Mäkelä, L., Suutari, V. and Mayerhofer, H. 2011. Lives of female expatriates: work-life balance concerns. 26 (4), pp. 256-274. Available from: doi: 10.1108/17542411111144283.

Mansour, B. and Wood, E. 2010. Cross-cultural training of European and American managers in Morocco. 34 (4), pp. 381-392. Available from: doi: 10.1108/03090591011039108.

Shih, H., Chiang, Y. and Kim, I. 2005. Expatriate performance management from MNEs of different national origins. 26 (2), pp. 157-176. Available from: doi: 10.1108/01437720510597658.

Today's production workers are the craftsmen of tomorrow at Toyota: Training creates skilled maintenance technicians for lean manufacturing. 2010. 18 (2), pp. 18-20. Available from: doi: 10.1108/09670731011028438.

Wan, D., Hui, T. and Tiang, L. 2003. Factors affecting Singaporeans’ acceptance of international postings. 32 (6), pp. 711-732. Available from: doi: 10.1108/00483480310498684.

Zakaria, N. 2000. The effects of cross-cultural training on the acculturation process of the global workforce. 21 (6), pp. 492-510. Available from: doi: 10.1108/01437720010377837.