Rashed Sheik-adan Student ID 13124963

International Human Resources Essay

(Q 2). International assignments, including expatriation,

have been argued to be an essential aspect of MNC

operations. What are the main problems associated with

expatriate selection? What steps can MNCs take to

ensure that these assignments are guided by and do not

contradict their diversity management policies and

practices? Please provide examples from MNCs to

illustrate your answer, and cover more than one equality

characteristic
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Introduction

Since the liberalisation of trade around the world, businesses have committed to venture into the

untapped regions across state boundaries. From just three thousand in the 1990s the number of

multinationals has grown to over 63000 today along with their 821000 subsidiaries spread

around the world. These multinational corporations directly employ 90 million people with

some 20miliion of those in the developing countries. And they produced 20 percent of the worlds

gross product. The top 1000 of these MNEs account for 80 percent of the worlds industrial

output according to (Chanda 2003 Yale centre for study of globalisation) However, one of the

puzzles they encounter relates to recruiting the workforce for the new markets. For this reason,

the human resource department should make decisions relating to the way foreign operations will

be staffed. In these circumstances, the human resource department has three staffing options to

choose from. It can adopt the home-country national staffing strategy that entails the relocating

employees from a corporation’s home country into foreign markets. The second option is the

host-country national staffing strategy that involves employing people who were born in the

country the corporation is venturing into. Finally, it can use the third-country national staffing

strategy that entails employing people from an entirely different country from the corporation’s

home country and the host nation.

Many scholars and multinational corporations’ managers have argued that the adoption of

expatriation in multinational corporations’ operations is the best staffing strategy. The opinion

has elicited unending debate as different people have varied views pertaining the viability of

expatriation by multinational corporations. Based on the above, this study seeks to highlight

some pertinent issues relating to expatriation in multinational corporation operations. It will

identify the main problems associated with the expatriate selection. It will also identify the steps

that MNCs can take to ensure that these assignments are guided and do not contradict their

diversity management policies and practices.

What are the Main Problems Associated with Expatriate Selection?

The growth and expansion of MNEs across the world, has increase intercultural interactions both

within and across organisational boundaries. In most MNEs operations lower level workers tend

to be from the local host country. While the top managers tend to be from the parent companies

home country. Who normally have little or no intercultural experience. According to Molinsky

(2013), the lack of sufficient knowledge relating to the best attributes that expatriates must have

to effectively perform in a foreign market is a major challenge to multinational corporations

during the selection of expatriates. Molinsky (2013) argues that to identify the best-qualified

individuals for the foreign operations, the executives must be aware of the underlying variables

that might have a negative or positive impact on an expatriate’s success or failure. For this

reason, the executives must conduct thorough research to identify all the basic qualifications

required. On the other hand, Dolan and Kawamura (2015) opine that the human resource

department should be fully conversant with all cross-cultural issues relating to the international

work environment. The authors believe that the lack of knowledge on these issues and the

necessary expatriate attributes complicates the selection processes since it may lead to

disagreements among corporate leaders. For instance, some leaders believe that prior

international experience is critical for effective performance in a foreign market whereas others

consider success in the domestic market as the best qualification. As a result, disagreements on

key qualifications complicate the selection process.

Saurabh (2016) discloses that many MNCs lack the understanding of the necessity and the most

effective training and development programs for the preparation of expatriates for tasks in the

foreign markets. In some cases, corporate leadership is divided regarding these initiatives. In

other cases, the leadership may have varied choices of the approach that can effectively equip the

expatriates with the critical skills for the foreign market. As a result, these MNCs adopt the trial

and error methods in the training and development of their potential candidates (Saurabh, 2016).

The factor is important as it influences the performance of the expatriates upon their placement

in their new roles abroad. Furthermore, some leaders disagree on the best location to conduct the

preparation programs. Some prefer the training to be conducted in the home country while others

calling for the process to be executed at the host country. For these reasons, expatriates selection,

training, and orientation are challenging to multinational corporations (Saurabh, 2016).

McNulty and Selmer (2017) believe that language differences between the MNC’s home and

host countries complicate expatriate selection. Besides, the expatriates should communicate

effectively in the foreign market. For this reason, MNCs are required to train their expatriates to

learn the host country language. On the same, Williams (2013) argues that the corporations often

encounter numerous challenges while identifying the best individuals who can effectively learn

and master the foreign languages. The length of time the potential expatriates take to fully

comprehend the new languages sometimes complicates the selection process. The slow learning

of the host countries’ languages makes the preparation of the expatriates for their new

workstations a cumbersome process thereby delaying the selection process. The method may

become a costly affair in the long run and may also delay the corporations’ international market

expansion.
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On the other hand, Cullen and Parboteeah (2013) argue that the allocation of relocation finances

for the expatriates is another major challenge for multinational corporations during the selection

processes. In most cases, these firms are responsible for all the costs of the expatriation. For

instance, the corporations are required to arrange for the employees’ hotels, visas, flights, work

and residence permits. Furthermore, they should provide pocket expenses for the individuals they

send for foreign assignments. The movement of the expatriates’ personal effects and household

goods will most likely be necessary. The movement of the property will necessitate the payment

of customs and tax charges. The employees will also require temporary housing in the host

country until the long-term housing is made available. In these circumstances, the corporations

encounter numerous challenges during the selection process as they should allocate sufficient

funds (Cullen and Parboteeah, 2013). These expenses become an issue of concern as the

businesses must minimise costs, especially when they are in the expansion phase. Furthermore,

the corporations’ expatriate selection process is complicated by the increased pressure to reduce

expatriation costs while focusing on talent development. The desire has forced many of these

entities to undertake a balancing act between operations and strategy. The situation has led to

constant pressure for Mobility and Talent Strategy functions as the companies have to find ways

of identifying the best to develop talent while cutting the costs.

Norhayati (2016) reveals that employee resistance to foreign assignments has also remained a

factor that complicates the selection of expatriates by MNCs. In most cases, the major concern is

the impact an international move can cause on one’s families and careers. For instance, a

majority of the potential candidates for expatriate positions turn down overseas assignments

since they are concerned about how their relocation to a foreign country will affect their families.

Thus, many are hesitant to accept expatriate opportunities as they are fearful of the disruption of
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their career path and that of their spouses and children. These factors are an obstacle to the

expatriate selection for most MNCs.

What Steps Can MNCs Take To Ensure That These Assignments Are Guided By And Do

Not Contradict Their Diversity Management Policies And Practices?

Hurley (2011) suggests that MNCs diversity management policies and practices can be

safeguarded if multinational corporations constantly train their personnel to view their colleagues

from different cultures as equal to them. The practice is well adopted by the multinational

corporation Colgate through its “Valuing Colgate People” concept. Through the approach, a

company transmits its critical principles regarding multiculturalism. The company uses the

program to ensure that its personnel globally understand each other better and to enable them to

work harmoniously despite their cultural, racial, and national differences. Colgate’s decision to

establish this program was motivated by its desire to educate its expatriates and host country

employees to work together as they are all equal. Through the program, all Colgate’s employees

are taught that although their colleagues might be of differences skin, culture, and language, they

are all equal as they work for the same company and that they have the same goals and values.

They are also taught that although the differences exist if they succeed in realising their

company’s business objectives, they all succeed and if the company fails, they all fail. The

multinational corporation Colgate also ensures that some of its employees go to work in other

countries to learn the culture of the foreign country. Similarly, the employees at the host

countries are also motivated to learn the culture of the person who has just arrived. The practice

ensures that the employees from the different countries interact together with ease.

Taylor (2015) believes that the corporations may also use the results of the assessment report in

the course of the candidates’ selection process to increase the effectiveness and personalisation
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of the expatriates’ cultural competency preparation. For instance, the corporation can use the

Aperian Global’s Global Readiness Development Assessment in assessing their employee’s

readiness for a foreign assignment as it provides extensive insight into the aspects of preparation

that must be addressed. Taylor (2015)’s assertions are premised on the thinking that linking those

development areas to the pre-departure or post-arrival learning positions the expatriate on a track

for success while working with people from different nationalities and operating in a foreign

environment.

Gundling (2011) argues that the international companies may also ensure that while on the

foreign assignment, the expatriates should continue learning through the use of cultural

intelligence resources that include GlobeSmart, which is an online resource that offers reliable

information relating to how expatriates can interact effectively with people in the host countries.

Gundling (2011) states that these resources also provide critical information that can be used

after the foreign assignment. For instance, the Aperian Global users may request the Repatriation

Workshop and Leveraging Your International Assignment that are resources that focus on

techniques to successfully transition back in the expatriates’ home country personally and

professionally.

In a different perspective, Stahl, Björkman, and Morris (2012) believe that the corporations can

also provide cultural competency training to the teams and managers who will be working

closely with their expatriate. Thus, the corporations will help the hosts to integrate the visitor

into the local office and team effectively (Stahl, Björkman, and Morris, 2012). The training

provides the receiving managers and teams with the rich knowledge that is critical in fully

leveraging and grooming the foreign employee to be an agent of change. According to McFarlin

and Sweeney (2014), the supporting team members can be provided with a guide to working
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with a global attitude or deepening understanding with a country-specific system that can

integrate the expatriate in more inclusive and effective teams.

In a different perspective, Syed and Kramar (2017) maintain that the support from the home

country managers is also critical for expatriates after they take their positions in the foreign

country. Syed and Kramar (2017) proposals are based on the actuality that in most cases,

expatriates encounter the feeling of being forgotten by their home-country managers and

colleagues while on foreign assignments. Such issues often arise because of the lack of support

from their home country offices, unexpected changes in job assignments, or unclear job

guidelines. As a result, most of the expatriates who undergo such feelings desire to have access

to mentors, cultural bridges, or cultural liaison. On the other hand, the Harvard Business Review

(2016) discloses that some expatriates desire to have constant check-ins from the human resource

at the foreign country or the home country office to confirm that they are receiving the support

they require. These feelings are often encountered especially the beginning of the foreign

assignments. They are common when the expatriates have not gotten the professional network of

help in their new foreign assignments or they could still be adjusting to the new environment.

For this reason, MNCs should ensure that expatriates receive support from the home and the host

counties’ human resource departments as they adjust to the new cultures.

According to Peng (2015), the corporations should also ensure that they consider employees who

are ambitious and possess the global preparedness skills necessary for the foreign assignments.

Peng (2015) argues that while recruiting expatriates, the human resource departments should not

only focus on the technical skills required for the foreign assignments but also the ability to

adjust to cross-cultural work environments. Preferably, multinational corporations must

implement a candidate evaluation process that relies on the validated standards and a behavioural
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interview to come up with informed choices relating to the confirmation and preparation of

employees for assignments.

Li (2015) is of the view that the international companies should also come up with some new

exchange of skills and knowledge programs that enable the expatriates and the employees in the

host countries to exchange knowledge and skills in the workplace. Li (2015)’s thoughts are

instigated by the reasoning that well-designed foreign assignments make it possible for

multinational corporations to facilitate the free flow of information and ideas from their

employees from different state origins. Such a situation enables companies to realise effective

enrichment of all parties and ultimately the organisation (Li, 2015). Expatriates can forge new

partners in different parts of the world, some of which include new mentors, clients, networks,

and potential leads. Through the use of these channels and avenues of exchange of skills and

information, multinational corporations can realise cohesion among their personnel from

different countries, a factor that is critical for effective operation in the global market.

Syed and Kramar (2017) assert that the maintenance of diversity in expatriates’ selection brings

new developments and diverse solutions to multinational corporations’ challenges. For instance,

Syed and Kramar (2017) argue that women are widely known to be more transformational in the

way they approach managerial and leadership issues. On the other hand, Taylor (2015) disclosed

that women are more open to various communication styles. In addition, they usually adapt

better in foreign cultures compared to men (Taylor, 2015). As a result, female expatriates

potentially have higher productivity in foreign assignments. For these reasons, Syed and Kramar

(2017), and Taylor (2015) assert that multicultural corporation should ensure that they consider

their female employees during their expatriates’ selection process. In their view, as organisations
Rashed Sheik-adan Student ID 13124963

globalise, they should consider women expatriates as they possess the traits that give their

employers a competitive advantage.

On the other hand, Molinsky (2013) opines that multicultural organisations should focus on

intuitional intelligence as the major qualities during their selection of employees for foreign

tasks. These qualities are critical as overseas assignments are continually becoming complex and

diverse. Molinsky (2013) revealed that although it is necessary for these entities to have an

adequate number of suitable candidates for their foreign markets, attaining the required

workforce is a major challenge. The obstacle often arises from the fact that there is not a large

enough pool of competent employees to satisfy expanding global labour requirements.

Conclusion

This study has extensively highlighted some pertinent issues relating to expatriation in

multinational corporation operations. It has identified the main problems associated with the

expatriate selection process that include the lack of the knowledge on the critical skills necessary

for the overseas roles, employee resistance to an overseas assignment, and language differences

between multinational companies home countries and the overseas markets among others. It has

explained fully how these problems complicate multinational corporations’ expatriate selection.

It has also identified the various appropriate steps that should be undertaken by MNCs to ensure

that expatriation assignments are guided and do not contradict their diversity management

policies and practices. Some of the appropriate steps that should be undertaken include the

provision of extensive language training to prepare the expatriates well for the overseas roles.

The corporations should also consider gender diversity while selecting the employees for the

foreign markets.
Rashed Sheik-adan Student ID 13124963

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