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CW2: Expatriate Management and International Staffing

6019SSL International Business and People Relations

COVENTRY UNIVERSITY

FACULTY OF BUSINESS AND LAW

Student Number:

Student Name:

Module Leader: Dr. Comfort Davis

Word Count: 2200

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Table of Contents
Abstract……………………………………………………………………...3

Optimizing Global Workforce: Effective Management of International Assignments…………...4

Introduction………………………………………………………………….4
1.1 Expatriate Failure………………………………………………………………………….5
1.2 Understanding the Factors Behind Expatriate Challenges………………………………...6
1.3 Understanding the Consequences of Expatriate Inefficacy……………………………….7
1.4 Expatriate Performance and Reward Management………………………………………..8
1.5 Strategies for Effective Talent Development and Retention……………………………...9

International Staffing…………………….……………………………...10

2.1 Strategic Insights into The Walt Disney Co.'s Business Approach……………………..11
2.2 The Global Workforce Strategy of The Walt Disney Co……………………………….11
2.3 Effective International Staffing Plan for The Walt Disney Co………………………….12

Conclusion and Recommendations…………………………………….13

Abstract

This report presents an international human resource management strategy devised for The Walt Disney

Co. with the aim of effectively managing its international staffing requirements. The report commences

by providing an overview of expatriate management and draws attention to the prevalent concern of

expatriate failure encountered by multinational corporations, including The Walt Disney Co.

The report outlines how various factors such as culture shock, language barriers, and disparities in social

norms and customs significantly contribute to the occurrence of expatriate failure. It further elaborates

how The Walt Disney Co. utilizes to gain insights into various cultural dimensions, such as power

distance, individualism-collectivism, and uncertainty avoidance ultimately, utilizing the Hofstede model
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helps Disney foster cultural sensitivity, enhance cross-cultural collaboration, and maintain a positive

brand image across diverse global markets.

Furthermore, the report delves into the subject of talent management, offering valuable suggestions to

The Walt Disney Co. on how to effectively implement talent management strategies aimed at identifying,

nurturing, and retaining top-tier employees. Additionally, the report examines company's business

strategy and its approach to international staffing.

In conclusion, the report puts forth recommendations for enhancing the company's international staffing

practices and mitigating expatriate failure. These recommendations encompass the importance of

providing substantial support, training, and feedback to expatriates, aligning their objectives with those of

the company, and customizing marketing strategies and campaigns to resonate with the local cultural

customs and values of the countries in which they operate.

1. Optimizing Global Workforce: Effective Management of International Assignments

Introduction

Expatriates bring valuable cross-cultural expertise, holding key leadership roles in foreign subsidiaries for

knowledge transfer. Their integration into talent development ensures experienced leaders for global

senior positions.

The Walt Disney Co., a prominent multinational entertainment conglomerate, was founded on October

16, 1923, by Walt Disney and Roy O. Disney. Headquartered in Burbank, California, United States, the

company has grown into a global leader in the entertainment industry, captivating audiences of all ages
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through its diverse portfolio of businesses like Walt Disney Studios, encompassing Walt Disney Pictures,

Animation Lucasfilm, 20th Century Studios, Animation, and Searchlight Pictures.

Since the 1980s, The Walt Disney Co. strategically expanded through acquisitions and divisions,

extending its market beyond traditional family-oriented content. Notable divisions include media

networks, parks and resorts, studio entertainment, consumer products, and interactive media. (The Walt

Disney Co., 2023).

The company's workforce consists of approximately 220,000 employees, of which approximately 166,000

are based in the United States, and the remaining approximately 54,000 are located internationally. The

Walt Disney Co. experienced notable revenue growth of 13.33% across all its operations, resulting in an

enhanced market share of approximately 4.63%. (Walt Disney Co. Segmentation - CSIMarket n.d.)

1.1 Expatriate Failure

Expatriate failure is a prevalent challenge encountered by numerous multinational corporations, including

The Walt Disney Co. This phenomenon refers to the untimely repatriation of an expatriate to their home

country owing to difficulties in adaptation, cultural dissonance, job dissatisfaction, or an inability to

accomplish the intended objectives before the completion of their assignment. (Harzing and Christensen,

2004).

The Walt Disney Co. utilizes expatriates as a means to transfer knowledge, expertise, and experience

between different locations, facilitate effective communication among diverse subsidiaries, provide

essential leadership, and bridge cultural gaps. (Collings, Scullion, & Dowling, 2009; Besic & Ortlieb,

2019).

Extensive investments made by numerous companies in sending their executives to work abroad often

yield meager returns. According to recent research, approximately 10 to 20 percent of U.S. managers who
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are sent overseas return home prematurely due to either job dissatisfaction or culture shock. One of the

primary pitfalls lies in the assumption that universally accepted 'good business' practices apply uniformly

across all cultures, when, in reality, they are culturally specific.

It is crucial to note that an individual who has been successful domestically will automatically replicate

that success abroad. Cultural differences can manifest in various forms, including but not limited to

language barriers, social norms, customs, values, and beliefs (Black & Gregersen, 2016).

Figure 1. Cross-Cultural Adjustment (Black & Mendenhall, 1991)

The U-curve model of cross-cultural adjustment (Figure 1) illustrates the sequential stages that an

individual experiences while acclimating to a foreign culture. This process commences with the initial

phase of excitement, known as the honeymoon phase, which is succeeded by culture shock, followed by a

period of adjustment, and ultimately culminating in acceptance to the new culture.

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1.2 Understanding the Factors Behind Expatriate Challenges:

a) Cultural differences and language barriers can lead to difficulties in adapting to the host country's

work environment, affecting job performance. (Chen 2019)

b) Inadequate cross-cultural training and preparation before the assignment can leave expatriates

unprepared to handle the challenges. (Kumaran and Balaji 2022)

c) The lack of support for expatriates' families in adjusting to the new environment can impact the

expatriate's commitment to the assignment. (Family Support: Underestimated, but Essential n.d.)

1.3 Understanding the Consequences of Expatriate Inefficacy:

a) Expatriate failure incurs substantial financial costs for organizations, including recruitment, training,
relocation, and repatriation expenses. (The Real Cost of Expatriate Assignment Failure | FIDI 2016)
b) The failure of expatriates can affect the morale and motivation of other employees, who may perceive
international assignments as risky and unattractive career opportunities. (How to Avoid Expatriate
Failure | DavidsonMorris 2023)
c) Expatriate failure can lead to disruptions in business operations and negatively impact relationships
with host country partners and clients. (Chen 2019)

The Walt Disney Co. employs the Hofstede model as a valuable tool to gain comprehensive insights into

the cultures of the countries in which it conducts its business operations. This model analyzes six distinct

cultural dimensions, providing essential guidance in making strategic decisions and formulating effective

marketing plans. The Walt Disney Co. customizes its marketing strategies and campaigns to harmonize

with the local cultural customs and values of the host countries while upholding its overarching

localization objectives.
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As a global company with diverse subsidiaries scattered across the globe, The Walt Disney Co. confronts

the challenges of managing cultural differences and language barriers. For instance, the cultural

disparities exist among the United States and China, Brazil and Germany posing potential challenges for

expatriates attempting to adapt to these cultures (StudySmarter US n.d.). Figure 2 presents a comparative

illustration in this context.

Figure 2. Cultural Differences through Hofstede’s Cultural Dimensions (StudySmarter US n.d.)

1.4 Expatriate Performance and Reward Management

The Walt Disney Co.'s global success heavily relies on the effective performance management of its

expatriates. As highlighted by MacKenzie and Martinez Lucio (2022), this entails aligning the expatriate's

goals with the organization's strategic objectives, offering comprehensive training and support, and

ensuring transparent communication of performance expectations. Figure 3 illustrates the various factors

influencing expatriate performance, with the host environment and cultural adjustments emerging as

particularly critical elements.

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Figure 3. Variable of Expatriate Performance

(Adapted from: Dowling, Festing and Engle, 2017)

Expatriate performance is influenced by several key variables. These include the compensation package,

task clarity, headquarters' support, host environment conditions, and cultural adjustment for both the

expatriate and their family. These factors collectively impact the expatriate's motivation, job satisfaction,

and overall effectiveness during their international assignment, contributing to the company's global

success.

1.5 Strategies for Effective Talent Development and Retention

Talent management pertains to the array of strategies and practices employed by organizations to attract,

nurture, and retain proficient employees. Diverse approaches to talent management exist, such as

inclusive, exclusive, segmentation, and global HRM methods. Inclusive talent management endeavors to

foster diversity and inclusivity by actively valuing and seeking out employees from diverse backgrounds.
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Conversely, exclusive talent management concentrates on specific groups, like high-performing

individuals or those possessing specialized skills (Meyers & Woerkom, 2014).

The global talent management approach entails identifying and nurturing high-potential employees

capable of leading the organization's growth in various international settings (Budhwar & Debrah, 2013).

At the core of The Walt Disney Co.’s talent management strategy lies the philosophy of attracting,

developing, and retaining talented individuals who align with the company's vision and objectives. The

lower-level employees are encouraged to contribute to the organization's growth (Ricz & Szunomár,

2019; Machen et al., 2021).

The global HRM approach entails managing talent across borders and cultures, allowing organizations to

address challenges in operating within a global market. By adopting a suitable talent management

approach, organizations can ensure that they have the right people in the right roles to effectively achieve

their business objectives (Cerdin & Brewste, 2014).

2. International Staffing

International staffing involves the strategic selection of qualified candidates to fill key positions within a

global context. To establish an effective international staffing philosophy, companies have several options

to consider, including egocentric, ethnocentric, polycentric, and regiocentric global staffing approaches.

The geocentric approach stands out by placing emphasis on individual skills and competencies,

irrespective of nationality. On the other hand, the ethnocentric approach focuses on recruiting employees

from the company's home country, while the polycentric approach involves hiring individuals from the

host country where the company is located. Additionally, the regiocentric strategy prioritizes the

recruitment of personnel from a specific geographic region (Bader et al., 2021).

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2.1 Strategic Insights into The Walt Disney Co.'s Business Approach

Disney's corporate-level strategy focuses on geographical diversification to fulfill its mission of providing

entertainment experiences to a global audience. The company operates in over 80 countries across

America, Europe, Asia-Pacific, the Middle East, and Africa, tailoring its offerings to diverse families and

children.

In its international strategy, Disney adopts a transnational approach, combining universal products with

local responsiveness.

Disney recruits local talent and implements cross-cultural training. For example, in the case of Hong

Kong Disneyland, a joint venture was utilized, while Disney Shanghai involved a strategic alliance with

the Shanghai Shendi Group to integrate Chinese culture with Disney's amusement park concept. (The

Walt Disney Company, 2021). Furthermore, it was discovered in a study that the performance of global

teams can be enhanced by hiring local talent and offering cross-cultural training (Wang, Zhang, & Liu,

2020).

2.2 The Global Workforce Strategy of The Walt Disney Co.

The Walt Disney Co.’s staffing approach can be assessed through the EPGR model. It exhibits an

Ethnocentric approach by appointing U.S. nationals to senior management positions and sending them as

expatriates abroad. Simultaneously, the Polycentric approach is employed by recruiting local talent in

various countries to support marketing and business objectives. Additionally, the Geocentric approach is

evident in hiring the most qualified individuals regardless of nationality for critical roles (Collings &

Isichei, 2017; Cookie et al., 2019).

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Expatriates are utilized to enhance capabilities in overseas offices, while parent country employees

facilitate communication between regional offices and corporate headquarters (Jalow, 2021). The

company tailors its international personnel strategy to meet the unique demands and expectations of each

function. The Walt Disney Co. has prioritized talent and abilities over national origins (Barmeyer et al.,

2021).

For staffing approach, incorporating a Regiocentric approach is recommended. This approach would

allow better adaptation to regional cultures, values, and business practices while maintaining a global

perspective (Gannon & Pillai, 2015).

2.3 Effective International Staffing Plan for The Walt Disney Co.

The Walt Disney Co. employs diverse approaches to international staffing tailored to specific situations to

achieve competitive advantage in various markets. Utilizing a mix of Parent-Country Nationals (PCNs),

Host-Country Nationals (HCNs), and Third-Country Nationals (TCNs) is proposed to ensure an effective

and diverse workforce. PCNs are suitable for top-level management positions, given their expertise and

understanding of the parent company's culture and operations. However, their usage should be limited to

mitigate costs and potential cultural clashes. HCNs can be employed for lower-level management roles

due to their local knowledge and language proficiency, enabling smooth operations in the host country.

TCNs, with their international experience and cultural awareness, can be valuable assets in various roles.

A diverse workforce fosters creativity, innovation, and overall performance (Stone et al., 2020; Philips et

al., 2021; Silzer & Dowell, 2009; Richter et al., 2019; Zhang & Gao, 2020).
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Conclusion and Recommendations

Effective performance management plays a pivotal role in maximizing the potential of expatriates.

Multinational companies must tailor their compensation packages and incentives to match the cultural

norms and expectations of the host country. The company must offer comprehensive pre-departure

training programs that encompass not only language proficiency but also cultural norms, customs, and

values prevalent in the host country. Developing a robust cross-cultural training program is essential to

ensure that expatriates are equipped with the necessary skills to navigate diverse cultural landscapes.

The Walt Disney Co. should establish performance metrics that align with the company's strategic

objectives. Regular feedback sessions will help expatriates assess their progress, address any concerns,

and provide necessary support, ultimately driving motivation and a sense of purpose in their roles.

Designing culturally appropriate reward systems is critical to recognizing and motivating expatriates. By

considering local customs and values, the Walt Disney Co. can implement incentive structures that

resonate with the host country's workforce.

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