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Table of Contents
Table of Contents............................................................................................................i

List of tables....................................................................................................................i

Acknowledgement.........................................................................................................ii

Introduction....................................................................................................................1

Part A.............................................................................................................................2

1.1 Recruitment and selection of expatriates.........................................................2

1.2 Advantages and disadvantages of recruitment and selection..........................2

1.3 Importance of recruitment and selection of expatriates..................................3

1.4 Training and developments.............................................................................4

1.5 Advantages and disadvantages of training and developments........................5

1.6 Importance of training and developments.......................................................5

1.7 Developing effective expatriation...................................................................7

Part B..............................................................................................................................8

2.1 Failures and potential problems arise in MNEs..............................................8

2.2 Preparations, Solutions and Recommendations.............................................9

Conclusion....................................................................................................................11

References....................................................................................................................12

List of tables
Table 1: Advantages and disadvantages of recruitment and selection of expatriates....2
Table 2: Importance of expatriates training...................................................................6
Table 3: Training plan....................................................................................................7
Table 4: Expatriates failures...........................................................................................8

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Acknowledgement

The learning process during this study provide a deeper inside and knowledge in
International Human Resource Management. Thus, to begin with, I would like to
express my deepest gratitude to my lecturer Mr. Gaenor Roberts. The study has been
completed successfully because of his knowledgeable guide and for his constant
support. The guidance, suggestions and advice has triggered me to go deeper into the
research process. His hard working nature, pleasant way of guiding and constructive
criticisms is highly appreciated.

I would also like express my deepest appreciation to my parents for their constant
support and convincingly conveyed a spirit of taking up a challenging task regarding
my profession and without their persistent help; this study would not have been
possible.

Thank You.

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Introduction
The globalization of exercises across national wildernesses presents new challenges
and open doors for foreign organizations, officials, labourers and their families. The
international Human Resource Development has created work intended to adjust
expatriates to foreign cultures [ CITATION Ero17 \l 1033 ].In the previous few
decades there has been a noteworthy ascent in expatriation open doors for people far
and wide. This improvement made another new frontier of expatriate, human asset
issues that numerous Multi National Enterprises (MNEs) attempted to survive
[ CITATION Min08 \l 1033 ]. To several Multi National Enterprises (MNEs),
expatriation and effective management of the expatriation were critical concerns
[ CITATION Kim07 \l 1033 ]. Thus training and management is currently an
important management capability for Multi National Enterprises (MNEs) to thrive in
global competition.

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Part A
Outline and articulate how organizations can prepare expatriate managers to
succeed in an international context, including recommendations for a
comprehensive training plan.

1.1 Recruitment and selection of expatriates

Both residential or foreign, recruiting and afterward appointing individuals to jobs
where they can work effectively is a need of most associations. Recruitment is the
process of scanning for and getting potential candidates in adequate numbers and
quality to empower the organization to choose the most fitting people to fill its job
needs (Dowling et al,2011). If it is difficult to find appropriate applicants internally,
businesses turn to the outside market. External recruiting strategies for foreign roles
include the use of the Internet, the introduction of foreign advertising campaigns, the
use of recruiting firms and/or international head-hunters services and the development
of ties with educational institutions [ CITATION Wax06 \l 1033 ].

1.2 Advantages and disadvantages of recruitment and selection

There are three different sources of employees of expatriates namely, Parent Country
Nationals (PCN), Host Country Nationals (HCN) and Third Country Nationals
(TCN). The advantages and disadvantages of recruitment and selection of expatriates
can be shown as follows according to the source of recruitment.

Table 1: Advantages and disadvantages of recruitment and selection of expatriates

Nationals Advantages Disadvantages

PCN  Familiarity with home  Difficulties in adopting
company goals, objectives and foreign languages,
practices cultures, political and
 Technical skills and economic environment
competencies  Excessive cost of
 Effective communication in selection, training and
home company managing expatriate
 Easy control of subsidiary’s managers with their
operations families
 Host countries promoting
local nationals in top
positions at foreign
subsidiaries
 Family adjustment
problems
 Limited promotional

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opportunities
 Host country adoption
may take long time
HCN  Language, cultural barriers are  Communication issues
eliminated and familiar with with home subsidiary
political, legal and economic  Lack of opportunities to
environment have cross-cultural and
 Lower hiring cost international experience to
 No work permit required home country nationals
 Opportunities in promoting  Difficulties in handling
and increasing commitment effective control over
and motivation subsidiary company
 Limited career
opportunities over the
subsidiary
TCN  Salary and other benefit  Host country’s sensitivity
requirements are lower than towards specific countries
PCN  Local nationals try on
 Usually consider as upgrade their own rank
international business and expect reasonable
managers positions in MNEs
 Better informed about host
country environment than PCN

1.3 Importance of recruitment and selection of expatriates

A study of Coustas, (2019) explains the understanding of hospital managers in South
Arican and recruited Indian Registered Nurses contribute to the functioning of their
hospital through their nursing skills and leadership, education, mentoring and role
models for the host country staff. Further Ethelmary and Uju (2017) show hospital
management should be left in the hands of highly trained health professionals to be
responsible for hiring skilled medical staff. Qualified medical staff hired and chosen
to work should be assured of full job security in order to show complete dedication in
the execution of their duties.

When it comes to the business administration MNEs tend to recruit more expatriates.
Spanish financial MNE representing the number of countries such as Europe, Africa,
America and Asia Pacific region, which is engage in commercial banking, corporate
finance, treasury, and capital markets is given higher attention on select
knowledgeable expatriates. The results provide evidence that the selection of
expatriates as a means of knowledge transfer and knowledge characteristics can be
having a major effect on expatriation policies. If the role of the expatriates is to pass

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tacit and explicit expertise (what the business does well and which gives it an
advantage over its competitors), then it is rational for the selection of expatriates to
prioritize capacities (Bonache and Brewster, 2001).

As a rapid growing sector expatriate managers are frequently used to operate and run
China's international hotels. Expatriates who had prior experience in Asian hotel
industry gain more competitive advantage by matching with the organisation's needs
and were able to recruit half of them with some experience in China (Dewald and
Self, 2008).

Interestingly, Brunt hotels PLC, which operates US, France and China are looking
through recruiting multiskilled managing staff for France and China hotel chain. They
mostly recruit HCN and PCN employees. Brunt hotels’ top management think they
see the importance of recruiting expatriates such as it eliminating language barriesrs
specially in Chinese and French, ease of handling employees, no work permit required
and HCN & PCN employess create more friendly relation with each other by
coordinating and controling work environmnet [ CITATION Rob08 \l 1033 ].

In the view of Tesco, Asda, Aldi, and Lidl hypermarkets, they recruit more expatriates
to serve higher demand of their customers. Even though providing accommodation
and basic facilities it is still cost effective hiring expatriates than locals [ CITATION
bbc20 \l 1033 ].

1.4 Training and developments

Training and development is a subsystem of an company that examines how
individuals and groups work better. Training is a cycle of education that includes
sharpening skills, principles, improving behaviours and acquiring more information to
improve employee performance. Effective and effective employee training helps in
the development of their skills and knowledge which ultimately helps a company
improve [ CITATION mba19 \l 1033 ]. Expatriates may feel separated from their
principle association and need adequate consideration or potentially groundwork for
their work as far as aptitudes and innovation, preparing and advancement toward the
start, during and after an abroad task despite everything seems, by all accounts, to be
required [ CITATION Bar14 \l 1033 ]. Hence the standard of training program is
about workers improving the organizational efficiency of the expatriate to achieve

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MNEs goals. Coaches, administrators and organisations should have a good view of
the international growth and training (Klobsanthia and Pinmanee).

1.5 Advantages and disadvantages of training and developments

Well integrated training allows workers to personalize learning and predict and
prepare for obstacles they can face as they work abroad. A tailored training program
for expats provides a number of benefits when they settle in on their position
abroad[ CITATION all18 \l 1033 ].

Advantages:
I. Give clear understanding of job role
II. Provide a better integration by providing detail overview of job role,
developing emotional flexibility and enhance the respect towards culture and
norms of host country.
III. Optimum utilization human resource
IV. Managing family issues
V. Improving time management, leadership, team management skills
VI. Increase profitability and corporate image of organization

Disadvantages:

I. It is an expensive process
II. Risk of employees quit the training and also the position

1.6 Importance of training and developments

International training and management is, according to Dowling and Welch (2004),
the human resources policy for sustaining employee's job skills and improving
employee's critical skills. It has been found that MNEs have expanded managerial
preparation to better organize practices in personnel operations. Training programs
support both workers and employers. It prepares for performance by an employee
(and family) through giving practical support for transition efforts, providing
information to the employee to help them to make a proper decision about the task
given. Providing emotional protection about the shift[ CITATION Lum20 \l 1033 ].

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Table 2: Importance of expatriates training

Industry/ Types of training Importance of the training

Company
Hotel industry- Cross-cultural training To adapt to living and working
China environment in China and Hong Kong
(Dewald and Self, 2008)
Brutus hotels PLC Cross- cultural training To serve customers in China and France by
Language training adopting their cultural differences
Chinese and French people does not
familiar with English [ CITATION
Rob08 \l 1033 ]
Hilton Cyprus Kitchen staff in HACCP Give them the appropriate knowledge and
hotel training skills
First Aid, Energy saving Increase process of communication
and recycling, between management and employees
Housekeeping and Food [ CITATION Aha13 \l 1033 ]
and service
ZTE Corporation, Language training English training is mandatory to move with
China Technical training Belgium and Chinese workers
Management training Deal with typical situations in company
Cross cultural training To achieve cultural transmission and
communication initiatives
Negotiate with the local suppliers and local
employees[ CITATION Xin15 \l 1033 ]
Huawei Language training Communicate with customers and co-
technology Expatriate job related workers
Corporation training To give guidance on living and working
Cross-cultural training Understand the cultural
difference[ CITATION Xin15 \l 1033 ]
McDonald Technology in delivering To suits the fast paced business trends
training and development To meeting the needs of employees and
programmes customers
Telecom - New Finance management Communicate with host country
Zealand People management employees, suppliers and customers
People impact and Handling business operations smoothly
Customer understanding (Pio, 2007)

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1.7 Developing effective expatriation

Brutus hotels PLC which operates in China, France and USA have been develop their
training plan for the position of Hotel manager [ CITATION Rob08 \l 1033 ].
Table 3: Training plan

Job role Skills / Action Plan

Competencies
required
Mange budget and Analytical skills, Business rules training China: One week
preparing financial Technical skills departure training
forecast including Chinese history,
Create a network with Communication Language training values, body language and
strategic customers skills Cultural training behaviour, basics of
Lead a large team Business rules training language and job role for
both manager and family
Preparing strategic Analytical skills Language training USA: Three days
plan Cultural training departure training on USA
history, values and
language
Maintain relationship Communication Negotiation role France: Shorter departure
with suppliers skills Language training training on three days
Manage conflicts Cultural training France history, differences
in business activities in
English and France people
and basis of French
language

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Part B

2
Critically analyse potential problems that can arise within multinational
enterprises (MNEs) when expatriates are insufficiently prepared and training
programme does not meet their needs, with specific examples where appropriate.

2.1 Failures and potential problems arise in MNEs

Some MNEs get wrong in their plans (Black and Gregersen,1999) on expatriate due to
several reasons, such as mismatch between expectations and reliability, dissatisfaction
with new role, disillusionment and cultural issues. Wilson (2017), state that because
of an employee or family finds themselves unable to adopt their change in living
circumstances, feelings of isolation, difficulties with languages, accommodation or
children’s schooling arrangements, security and welfare issues the quantity of
worldwide assignments being ended early.

Other than the personnel issues the organizational variables leads the failures such as
concern a clear description of the position and the possibility of autonomy, objective
discrepancies between roles, organizational social support, the uniqueness of the
organizational culture and intercultural planning. There may be confusion in contact
between the organization and the division about the expatriate's position, which is not
clearly defined as such (Waxin and Barmeyer, 2008).

Table 4: Expatriates failures

MNE Reasons for expatriate failure

Coca-Cola, Technical and managerial skills failures, Family issues
Headquartered in incapability to integrate into a new work environment, Lack of
Atlanta, Georgia. cross cultural suitability as they work in different situations
Major businesses such as challenge of working in Asian and African countries,
in Britain, Europe, some international assignments of Coca-Cola at rural area or
Middle East, Asia, war-zone mean hard living conditions. So if the expatriate
Russia and North candidate can’t handle it then they usually drop the assignment
America. [ CITATION edu20 \l 1033 ].
China hotel chain It is calculate that 16% to 40% of expatriate managers fail due
to poor performance or inability to adjust to the overseas
environment.
The overall level of Cross-Cultural Training received by
expatriate hotel managers in the PRC was found to be
minimal.
Expatriate managers were considered the experts and were

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viewed as trainers by most PRC Nationals.

Lack of job security
Language issues
Problems with the expatriate families adjusting to life in China
(Dewald and Self, 2008).

2.2 Preparations, Solutions and Recommendations

To address the reasons for the failures of the expatriation needs the HR panel to select
and train workers utilizing a portion of the techniques for settlement in the outside
nation [ CITATION Mer18 \l 1033 ]. According to Deresky (2006), most MNEs
disparage the significance of the human resource management capacity in the
selection, training and acculturation of managers doled out abroad.

MNE Possible solutions taken

Toyota GB Making expatriate arrangements fit in with its cost-
conscious policies. Such as an allowance of 10% of gross
salary and housing allowance, relocate managers after a
good analysis of cultural fit and send managers with a
clear career path for after repatriation [ CITATION Kee11
\l 1033 ].
‘Globetrotting’, Support the expatriates on financial issues
pharmaceutical (accommodation, schools, living costs and return trips
company ‐ home)
Headquartered in the Language and educational support [ CITATION
UK and with CWS20 \l 1033 ]
operations based in the
US, GSK
Coca-Cola Sending younger employees of higher potential to prevent
family burdens.
Sending executives as expatriates. Most of the expatriates
are sent from USA and Britain to the Middle East, Asia
and Russia.
Changing selection criteria such as language skills,
personal talents such as self-confident and ability to be
criticized and individual motivation.
For education and training Coca Cola launched Coca Cola
University (CCU) in 2007.
Arranging allowances including family, accommodation,
transport and medical and pension benefits [ CITATION
edu20 \l 1033 ]
Hotel chains in China Human Resource Managers need to invest time and
money to convince upper management and local
ownership of a robust CCT plan's utility and benefits.

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Cross-cultural training should not be limited to expatriate

managers but should also include local management and
staff to help local managers understand the expatriate
better. Further Cross-cultural preparation should not be
seen as a expense but rather as an investment in the hotel's
profitability.
More focus on preparation for expatriate management
within the local community.
Dependence on the expatriates as managers of hotels is
diminishing (Dewald and Self, 2008).
Brunt hotels PLC Top management suggest Pre-departure Training and On-
the-Job Training in the New Country is really effective in
France and China [ CITATION Rob08 \l 1033 ].

The importance of preventing the failure of expatriates and choosing the right
candidate motivated MNEs to investigate some of the strategies that global mobility
professionals used to make the right choice [ CITATION FID17 \l 1033 ]. Establish
the formal criteria including technical and management skills required to the position,
examine past experiences of candidates, language skills are more affordable as
candidates receive more respect from supervisors and clients if they use local
languages, use talented managers, selection panels and manage the family issues are
best ways to prevent expatriate failures[ CITATION FID17 \l 1033 ].

US develop communication system matched to day to day expatriate needs, business

school practices and increase the short term expatriate assignments. Further MNC's
made few promises to the returning expatriate that he / she will return to the "old" job
and enjoy all the benefits attached to it to deal with repatriation issues successfully.
Repatriates found that their work mobility and previous state wage rates were reduced
and even plateaued as a result of organizational changes that occurred during their
foreign assignment[ CITATION Min08 \l 1033 ].

Informed decision about whether to become an expatriate will eventually support to

their role within the organization. At the same time, organizations within their own
organizations need to be frank about the connection between expatriate assignments
and career performance. Therefore, if organizations are able to find ways to reward
former foreign assignments, it will not only assist them in attracting potential
expatriates but also allow them to retain those who have already completed an
assignment overseas [ CITATION UKe18 \l 1033 ].

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Do the adjustment to the expatriate managers is a more effective way to prevent

failures and cost [ CITATION Wax06 \l 1033 ]. When the expatriate arrives at the
place of assignment, he or she requires more help from the company to move as
quickly and efficiently as possible in the new job and in the new environment. Also,
the company must maintain ties with the expatriate so that the employee does not
suffer from the out - of-home country after completing his task. In fact, maybe even
more so than the expatriate, the partner still needs assistance. Adjustments can be
done in job related factors, organizational social support, logistic support, intercultural
training and organizational similarities [ CITATION Wax06 \l 1033 ]. Personal
performance management is another effective tool in minimizing failures of
expatriation. This includes a structured goal setting process, performance evaluation,
and feedback process. It gives opportunity to expatriates to promotion and
compensation [ CITATION Wax06 \l 1033 ].

Conclusion

International Human Resource Management (IHRM) now become a growing and

strong context due to globalization. It create many opportunities to expand local and
regional business to worldwide. Thus to operate these Multinational enterprises
(MNEs) top managers and administrators tend to select and recruit expatriate
managers. Each MNEs use different and unique methods to select and recruit these
expatriates. They use many ways to train their candidates as it is an investment for
the company. Training programmes gives proper understanding of job role, working
and cultural environment and manage both work and family.

Due to some reasons such as work stress, lack of technical skills, language issues,
family, lack of competencies, cultural issues, mismatch of expected job role these
expatriation plans may fail. MNEs use techniques and methods to prevent or
minimize these failures like proper training programs, personal performance
management, reward systems and support from the MNE to handle work
environment.

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