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Management
ISSN: (Print) (Online) Journal homepage: https://www.tandfonline.com/loi/rijh20
Artificial intelligence – challenges and

opportunities for international HRM: a review
and research agenda
Pawan Budhwar, Ashish Malik, M. T. Thedushika De Silva & Praveena

Thevisuthan
To cite this article: Pawan Budhwar, Ashish Malik, M. T. Thedushika De Silva & Praveena
Thevisuthan (2022) Artificial intelligence – challenges and opportunities for international HRM: a
review and research agenda, The International Journal of Human Resource Management, 33:6, 1065-
1097, DOI: 10.1080/09585192.2022.2035161
To link to this article: https://doi.org/10.1080/09585192.2022.2035161
Published online: 06 Mar 2022.
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THE INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 2022, VOL. 33, NO. 6, 1065–
1097
https://doi.org/10.1080/09585192.2022.2035161
EDITORIAL
Artificial intelligence – challenges and

opportunities for international HRM: a review and research agenda
Pawan Budhwara, Ashish Malikb, M. T. Thedushika De Silvac and Praveena Thevisuthanc
a
Aston Business School, Aston University, Birmingham, UK; bUoN Central Coast Business School, University of Newcastle Australia,
Ourimbah, NSW, Australia; cNewcastle Business School, University of Newcastle, NSW, Australia
ABSTRACT KEYWORDS
Artificial intelligence (AI) and other AI-based applications Artificial intelligence; international human resource
are being integrated into firms’ human resource management; employee outcomes; organisational outcomes;
management (HRM) approaches for managing people in systematic review
domestic and international organisations. The last
decade has seen a growth in AI-based applications
proliferating the HRM function, triggering an exciting new
stream of research on topics such as the social presence of
AI and robotics, effects of AI adoption on individual and
business level outcomes, and evaluating AI-enabled HRM
practices. Adopting these technologies has resulted in
how work is organised in local and international firms,
noting opportunities for employees and firms’ resource
utilisation, decision-making, and problem-solving.
However, despite a growing interest in scholarship,
research on AI-based technologies for HRM is limited and
fragmented. Further research is needed that analyses the
role of AI-assisted applications in HRM functions and
human-AI interactions in large multinational enterprises
diffusing such innovations. In response to these
combined issues—the fragmented nature of research and
limited extant literature, we present a systematic review
on the theme of this special issue and offer a nuanced
understating of what is known, yet to be known, and
future research directions to frame a future research
agenda for international HRM. We develop a conceptual
framework that integrates research on AI applications in
HRM and offers a cohesive base for future research
endeavours. We also develop a set of testable propositions
that serve as directions for future research.
CONTACT Ashish Malik ashish.malik@newcastle.edu.au UoN Central Coast Business School, University of Newcastle Australia, BO 1.16
Business Offices, 10 Chittaway Road, Ourimbah, NSW 2258, Australia.
This article has been republished with minor changes. These changes do not impact the academic content
of the article.
© 2022 Informa UK Limited, trading as Taylor & Francis Group
Introduction
The Fourth Industrial Revolution (4IR) marks an increased use of emerging technologies, such
as artificial intelligence (AI), big data, machine learning, mobile technology, the Internet of
Things, geo-tagging, virtual reality, speech recognition, and biometrics (Azadeh et al., 2018;
Shank et al., 2019). The application of these advanced technologies transforms the way
business is conducted locally or globally and has had a considerable impact on the way work
is designed, workers are engaged, and workplace processes changed (Abraham et al., 2019;
Agrawal et al., 2017; Duggan et al., 2020; Malik et al., 2020a; 2022; McColl & Michelotti, 2019).
Indeed, serious concerns and reservations have been voiced regarding the role of AI in causing
job destruction and humanity’s very basis and essence (Agar, 2019, 2020; Charlwood &
Guenole, 2021; Malik et al., 2020b). Nevertheless, AI and other related intelligence-based
applications bring opportunities for organisations to achieve optimal strategic business outcomes,
such as enhancing service quality, productivity, cost-effective service excellence (CESE)
(Wirtz, 2019), return on investment (Torres & Mejia, 2017), operational efficiency, customer
engagement and loyalty (Prentice & Nguyen, 2020), employees’ service quality (Nguyen &
Malik, 2022) and reducing considerable operational and capital cost (Wirtz, 2019). Moreover,
such research also delivers positive individual-level outcomes, such as employee and talent
experiences, intention to quit and job satisfaction (Malik et al., 2020c; 2021, Nguyen & Malik,
2022).
AI refers to a broad class of technologies that allows a computer to perform tasks that generally
require human cognition, including adaptive decision-making (Tambe et al., 2019, p. 16). A
growing debate in academic research examines different types of AI digital tools and tech-
niques and whether firms can benefit from such business solutions (Aouadni & Rebai, 2017;
Castellacci & Viñas-Bardolet, 2019). In this regard, the recent calls for academic scholarship on
AI in HRM have received considerable attention in premier HRM journals, including other
related disciplinary areas such as international management, information technology, and
general management (see Budhwar & Malik, 2020; Buxmann et al., 2019; Jain et al., 2018;
Kaplan & Haenlein, 2020; Meijerink et al., 2018). Thus, research at the interface of AI and HRM
assumes an increasingly multidisciplinary character (Connelly et al., 2020). However, there is
still limited understanding in the AI-HRM literature about how AI and related technologies can
offer solutions for effective HRM and sub-functional areas and how AI-enabled HRM functions
link to other operational tasks to deliver better results outcomes for their organisations
(Agrawal et al., 2017).
Despite the limited knowledge on AI-HRM scholarship, a growing body of knowledge
asserts that contemporary developments in automation technologies offer remarkable benefits
for HRM (Bersin & Chamorro-Premuzic, 2019; Maedche et al., 2019; Prikshat et al., 2021).
Further, organisations from local and multinational enterprises (MNEs) have understood the
benefits of AI-based tools and techniques to enhanced employee satisfaction, commitment and
job engagement (Castellacci & Viñas-Bardolet, 2019), productivity (Wirtz, 2019), job
performance, HR cost-effectiveness (Azadeh & Zarrin, 2016); employee retention (Malik et al.,
2020c, 2021; Nura & Osman, 2013), effective decision-making (Azadeh et al., 2018), while
reducing HR-related and other operational costs (Torres & Mejia, 2017). The growing interest in
examining AI and its impact on sub-functional areas of HRM is rising. For example,
scholars argue that emerging AI-based HRM technologies can support talent acquisition,
development, assessment, and retention in large technology MNEs (Bersin & Chamorro-
Premuzic, 2019; de Kervenoael et al., 2020; Malik et al., 2021). It can also assist from
recruitment to selection, assessing, and interviewing the most suitable candidates (Torres &
Mejia, 2017; van Esch et al., 2019), including Industry 4.0 advertisements to take out new
job profiles (Pejic-Bach et al., 2020) and assess employees’ training effectiveness (Sitzmann &
Weinhardt, 2019). The above has implications for IHRM as contextual influences, such as
linguistic, cultural, institutional differences across borders will need sufficiently diverse databases
for AI applications to minimise any inherent biases in narrow databases and single country
contexts.
Although the extant literature on AI-enabled HRM reports optimistic outcomes, others argue
for examining the negative consequences of these advanced technologies for both organisations
and employees (Huang et al., 2019). Not attending to adverse aspects may lead to unintended
consequences, such as high employee turnover, decreasing job satisfaction, loss of customer
satisfaction, incurring high costs, and eventually affecting organisations’ overall business
performance and goodwill (Li et al., 2019). Furthermore, scholars point out that limitations
usually happen when adapting AI in HRM due to the complex nature of HR phenomena,
constraints of the small data sets, accountability questions associated with fairness and other
ethical and legal issues, and possible adverse employee reactions to management decisions via
data-based algorithms (Tambe et al., 2019).
Analysing the use of automation technologies in HRM suggests there is still limited
knowledge of how AI-enabled HRM functions affect workers, their work outcomes, and overall
organizational outcomes (Castellacci & Viñas-Bardolet, 2019). Furthermore, there is a need to
show how these HR-focused AI applications improve positive outcomes while reducing negative
consequences. Thus, we argue that the influence of the social-technological context, such as
flexible organisational structure, proper training, dealing with fear and change management, and
upskilling employees, can further strengthen to achieve favourable outcomes. We also argue
that it is also vital to consider personal employee factors, such as personality and emotional
intelligence, as they can influence business outcomes (Huang et al., 2019).
There is also an ongoing argument in the AI-HRM literature about identifying the attributes of
employees when adapting AI and intelligence-based technologies in organisations to deploy these
technologies effectively. However, despite the considerable opportunities provided by
advanced technologies in HRM, employees are better able to perform several tasks that machines
cannot do (Agrawal et al., 2017; Maedche et al., 2019). Thus, scholars argue that augmenting
humans with AI applications rather than replacing them leads to optimised organisational
benefits, as both AI and humans can collectively excel and perform well (Wilson et al., 2017).
We argue that AI-enabled HRM produces favourable outcomes through Human-AI configuration
mechanisms. The research base on AI applications from an IHRM perspective is relatively
small, though there are some emerging signs of empirical evidence from single-country contexts
(Nguyen & Malik, 2021, 2022; Pan et al., 2021; Suseno et al., 2021) or subsidiaries of large
technology multinationals (Del Giudice et al., 2021; Jaiswal et al., 2021; Malik et al., 2020c,
2021).
Considering the above calls and limitations, a systematic review of the literature can
provide some pathways for researchers. Taking a global view of the use of AI and advanced
technologies in the field of HRM, we believe this systematic review provides a rigorous
assessment of the extant literature for answering the following research questions:
1. What is the current knowledge of AI and intelligence-based technologies in the

global business context in the field of HRM?
2. How do AI-enabled intelligence technologies affect employee and organisational
outcomes in the global business context?
3. What are the main directions for consideration for future research?
This review aims to answer the above questions focusing on adopting AI applications in
HRM functions in a global context. Second, this review contributes to AI literature on how
automation and AI-based technologies affect HRM functions by studying outcomes at both
employee and organisational levels, and considering the positive and negative consequences
evident in the extant literature, thus proposing future research directions. Third, this review
presents how key social-technical and personal factors influence positive outcomes at the
workplace. Fourth, we highlight how Human-AI configurations play a vital role in
strengthening positive individual and business unit outcomes. Fifth, by focusing on the themes of
AI and its impact on HRM, we propose future research propositions to guide theory-
building efforts. By focusing on the how and why of AI adoption, business and HR leaders
must learn to effectively manage the opportunities and challenges posed by AI applications
through appropriate social-technical and personal interventions and configurations. Sixth, we
build a framework that shows the linkages between AI and intelligence technologies, HRM
functions and their consequences on employee and organisational outcomes, and how some of
these outcomes could be achieved through social-technical and personal factors by augmenting
social-technical and personal factors.
Methodology
Employing a systematic literature review approach as our guiding research methodology (Snyder,
2019), this review aims to provide a thorough assessment of the extant literature on AI and
advanced technologies in the field of HRM, which has implications for the management of HRs
globally. Systematic reviews involve a process of collecting and critically analysing the literature
and the themes emanating from the chosen studies that are within the scope of the
research questions posed and to constitute a concrete foundation for advancing the knowledge
and theory development on a given topic (Paul & Criado, 2020; Snyder, 2019). Furthermore,
such an approach allows a repeatable and transparent process for synthesising findings that
ensure overall reliability (Tranfield, Denyer & Smart, 2003). Therefore, guided by the
suggestions of Tranfield et al. (2003) and Snyder (2019) for undertaking a systematic literature
review in business and management research, we decided on a systematic approach as the
appropriate method for this review to provide comprehensive coverage of the literature and to
locate emerging themes while ensuring its repeatability.
Selection of articles and qualitative assessment
Driven by our abovementioned research questions for this review, we included studies that have
focused on the use of AI or advanced technologies in the field of HRM across the international
boundaries and a temporal boundary of the last decade as this is a relatively new phenomenon
that has gained prominence since 2010 (2010–2020). A ten-year time frame was also decided to
capture the recent development of studies that explored AI-advanced technologies and HRM as
the field of AI, and intelligence-based technologies have significantly developed in recent years.
Based on the focus, a range of specific keywords relating to AI, robotics and other intelligence-
based technologies and the HRM discipline were included and combined in the search string
using the Boolean operators, ‘OR’ and ‘AND’. The keyword search algorithm applied for this
review is as follows:
(“Artificial Intelligence” OR “AI” OR “robotics” OR “bots”) AND (“human resource
management” OR “HRM” OR Human resource management functions” OR “HRM functions”
OR “HRM cost efficiency” OR employee-level outcomes OR “individual outcomes” OR
“organisational outcomes” OR “firm level outcomes” OR “human-collaboration” OR
“employee-experience”).
The next critical decision was to decide which relevant electronic databases to use as
search engines. Given that the scope of the review is in the context of management
discipline and technology-related fields, we selected three well-known search engines that
are widely used by management and business scholars, such as ABI/ProQuest, SCOPUS and
Web of Science. Having decided on the three databases, we applied the search algorithm on
each search engine and filtered the initial research results for full-text, peer-reviewed articles
in the English language and keeping the time frame of 2010–2020. Then, an initial screening
based on the relevance was performed for the titles, keywords or abstracts to identify the
papers and subsequently screened using inclusion and exclusion criteria decided for the review.
Following other comprehensive systematic reviews conducted in management (e.g., Christofi et
al., 2021), we excluded non-peer-reviewed journal articles, papers not in English (due to
language limitations), books, book chapters, editorials, commentaries, executive summaries and
(peer reviewed) conference papers. In addition, we only included papers from the top
journals listed in the Australian Business Deans Council (ABDC – A* and A) rankings as a
proxy and signalling frame for selecting high-quality peer-reviewed articles we included papers
published in journals which are ranked high in a combination of leading journal ranking lists
such as the Australia’s ABDC and the UK’s CABS list.
Like with any research design, researchers have managed the trade-offs of time, effort and
quality in terms of the number of data points (outputs) to include in the analysis. We
believe the rigour of reviewing in top-tier journals is much more robust and demanding than
other
categories of outputs. This is particularly true for an emerging field which faces challenges in
being accepted in the mainstream premier outlets. Thus, in our bid to focus more on high-
quality outputs, we may have lost some excellent papers published in the lesser ranked
journals and other outputs identified above as well as some additional themes.
Nevertheless, we performed a manual cross-check to screen the papers for the inclusion
criteria further. Moreover, due to different approaches and perspectives contributed to this
emerging field of AI and advanced technologies and limited papers in the literature, we
decided to include all three types—empirical, conceptual and review papers for the review.
Having screened one hundred and ten (110) papers based on the inclusion and exclusion
criteria, and after removing the duplicate papers, a qualitative approach was undertaken to
further refine the articles by reading the full text of these papers. Following a preferred
guideline for using two reviewers to select the final sample of articles (Snyder, 2019), two
authors of the research team were deployed to mutually decide on the final sample of
articles for this review, ensuring the quality and the reliability of the search protocol. During
the qualitative assessment, two authors from the authorship team rated the 110 papers for
relevance on an individual basis after full-text reading and then compared the relevance with
each other. Any deviations in ratings was resolved at discussion meetings with the rest of the
team for including the papers in the final sample. Out of 110 papers, forty (40) papers were
eliminated during the qualitative assessment, as these papers did not focus on the central
questions posed by this literature review. The process applied for the review is depicted in
Figure 1. A final search yielded a total of seventy (70) papers that were published in 38
journals. A list of journals and the
frequencies of articles published has been presented in Table 1.
Data coding and analysis
Relevant data from the selected articles were extracted into (Tranfield et al., 2003) an Excel
spreadsheet containing simple categorical data, such as the article details, year of publication,
author details, type of paper, methodology, research context (industry), key findings and future
research directions that aided easy reading and forming the descriptive analysis (Tranfield et al.,
2003). Following Ererdi et al. (2021), the coding was conducted using two authors from the
authorship team inde- pendently to ensure the inter-coder reliability and any coding discrep-
ancies were discussed at research meetings for this review. The agreement between the two
authors was 96% and the discrepancies were resolved by mutual consensus. Once extraction
and coding were completed, in-depth thematic analysis was conducted to locate themes
emerging. As a result, we identified a few common categories of articles on micro-foundation of
AI/robotic collaboration, AI/advanced technology influence on HRM functions leading to the
individual, team and organisational level outcomes, a range of intervention factors that influence
the use of AI/robotics in the field of HRM and organisational settings.
Mainly, AI assists in HR planning by determining future employee needs and making effective
recruitment decisions (Karatop et al., 2015). It is also evident that AI-enabled recruitment and
selection play a crucial role in attracting and selecting the most talented work pool to the
organisations, as these advanced technologies can access data and make decisions at a speedy pace
and can handle large volumes of information in a time that far exceeds human capacity (Torres &
Mejia, 2017). As a result, AI algorithms can improve job candidate identification, that is who is
most interested and suited for the job and provide better communication of the job opening.
Influencing job seekers’ technology increases their participation in AI- enabled recruiting (van Esch
et al., 2020). AI also assists in making the job interview process more effective, so that the
interview process is now changed from face-to-face to internet-based interviews, such as
asynchronous video interviews (AVIs) (Torres &
Mejia, 2017). Moreover, Pessach et al. (2020) found in their studies that using a hybrid decision-
support tool helped HR professionals in the recruitment and placement processes and increased the
impact of recruiters and maximised organisational return on investment. AI Algorithms allowed HR
professionals to identify suitable profiles for job vacancies, eliminating cognitive biases of race,
gender and sexual orientation that mar human judgement in recruiting activities.
Training and development. The literature highlights that AI supports the training and development of
employees more effectively. Most importantly, systems could save each current employee’s
electronic resumes that provide the organisation with an electronic inventory of its employees. This
can help to track shortages in skills or to develop suitable training programmes. It can also help
organisations to search for an appropriate candidate within the organisation. Moreover,
employees could use these systems in order to manage their prospective careers. If employees lack
any skills, these AI systems help them identify their training needs and complete the required courses.
Further, online or virtual training provides a couple of benefits for both the organisation and
employees. AI assists HR managers to assess training effectiveness and making decisions on
employee competency, including emotional and intellectual capabilities and experiences level, in
order to assign the right employee with the corresponding talents to the correct positions (Karatop et
al., 2015; Sitzmann & Weinhardt, 2019).
Compensation and benefits. Our analysis presents that automation in payroll systems supports HR
professionals in efficiently handling all HR payroll and related value-added activities. This is
because AI technologies can track all types of employee data, including employee personal
details, changes in personal information such as dependants, or marriage and beneficiary changes
(Bussler & Davis, 2002). Moreover, the skill supply and demand gap obtained from the databases
helps determine an organisation’s compensation and benefits plans (Pessach et al., 2020). AI systems
also assist managers and experts in collecting the most pertinent information about required
employees’ compensation and benefits systems. Specifically, these systems help to calculate and
determine the salary parameters of employees concerning their jobs (Mehrabad & Brojeny,
2007)
Performance management. AI-enabled performance management tools and techniques also provide
multiple opportunities for both employees and organisations. For instance, a fuzzy multi-attribute
decision-making tool leads to a fair evaluation of employees. Notably, this tool helps identify
employees who need further improvements in some factors and the magnitude of improvements
needed (Manoharan et al., 2011). Moreover, digital performance tools assist managers to assess
employee performance or to recommend any required improvements and take corrective actions
for an employee based on expert opinion such as providing training, talent enhancement and further
qualification wherever required (Azadeh et al., 2018; Manoharan et al., 2011) .
Implementation challenges. Although many studies highlight the need to adopt AI and automation
intelligence technologies in HRM to obtain optimised benefits, how these systems are running is still
a bottleneck in AI research. Most importantly, how organisations make decisions on employees based
on the outputs provided by AI-based systems is not primarily transparent to employees (Connelly
et al., 2020). There is an argument how employees like gig workers and workers, who work distantly
from customers and organisations, monitor through AI-based technologies (Connelly et al., 2020).
Scholars further claim that when employees do not understand how decisions have been made using
AI-based systems or cannot accept these decisions, it leads them to adversarial behaviours in
organisations (Tambe et al., 2019). However, only limited research is noted on examining how
to diminish negative consequences due to the technology adaptions in HRM functions.
Ethical and legal issues. Employees need to know what data is collected about them and determine
whether they are provided with the opportunity to verify their collected information produced by the
relevant systems. Employees also need to know how these AI-based decisions affect their outcomes,
including their attitudes and behaviours (Connelly et al., 2020). In this regard, employees need open
and transparent communication to ensure the AI systems are working promptly, securely and
reliably (Wilson et al., 2017). On the other hand, the literature points out that organisations
communicate
to employees what technologies are being used and how expert systems make employee-related
decisions (Connelly et al., 2020). Furthermore, ethical issues from China and Global South-
East Asian countries point to intensifying surveillance and ‘getting in workers’ heads’ (Houser,
2018; Kshetri, 2021; Wong & Liu, 2019), and there are several racist and sexist biases prevalent
in some AI applications (Moosajee, 2019).
Implications for theory and practice
Our review analysed the extant literature, presented opportunities and challenges of AI and
other automated technologies for HRM, exploring how the automated HRM functions can
impact employee and organisational outcomes. From the extant literature, we found that AI
and other related automation technologies offer numerous opportunities for HRM functions,
particularly in attracting the star performers, enhancing training effectiveness, identifying skill-
gaps and recommending any required training and development for employees, assisting in
employee payroll, effective decision-making on employees, while reducing the costs and time,
cognitive biases made by humans in HRM activities (Karatop et al., 2015; Kshetri, 2021;
Pessach et al., 2020; Torres & Mejia, 2017). Thus, AI and related intelligence technologies play a
crucial role in strengthening HRM functions and activities.
Moreover, our review highlights that AI-enabled HRM functions can impact both employees
and organisations. For this reason, there is a need to study some influential factors which may
further strengthen favourable outcomes. Thus, we argue social-technical interventions and
employee factors could influence positive consequences at the workplace. Furthermore, literature
argued that AI and advanced robot technologies might take human jobs (Wirtz, 2019). However,
some arguments of augmentation suggest that instead of automation, it is the importance of
AI-human configurations in the effective use of AI-enabled HRM functions that will deliver
better outcomes.
Although literature points to AI as an asset, the extent to which it can be classified is
questionable and unclear, as AI and other automation technologies always need to adhere to
privacy, legal, moral and ethical principles. Further, the service quality of AI applications, their
design, and delivery attributes are vital for the ease of use and EX. Hence, further research is
needed on developing measurements for AI service quality,
AI attributes and AI-mediated knowledge sharing mechanisms. Though some progress has been
made in developing measures for AI-service quality and its attributes (Nguyen & Malik, 2021),
further work is needed for a range of AI inputs, processes and outputs to advance the field
further. Thus, considering clear, transparent legal, ethical, and accountability guidelines are
necessary for prompting favourable consequences due to the automation of HRM function at
the workplace. Additionally, there is also a need to have sound principles and guidelines on
analysing how effectively AI can augment humans and the possible impacts of these
configurations. Finally, we believe that the model presented and propositions developed in this
review will provide a pathway for future researchers to examine how AI-focused HRM
functions enhance positive outcomes in organisations through some interventions and
conditions.
In line with the opportunities provided by the intelligence technologies, this review also
provides some practical implications for managers, practitioners and policymakers in
organisations. As per this review, advanced automated technologies shape, assist and change
the handling of HRM activities in organisations. As a result, AI and related automation
technologies are not only helping attract and select high calibre, but they also help in
providing prompt and effective
training and development to employees in handling massive employee data and assisting
managers to make better decisions for their employees. The supportive role provided by the
technologies in HRM function eventually leads to cultivating favourable employee outcomes
such as enhanced employee participation and job satisfaction, commitment and job
performance. Thus, it is possible to boost organisational outcomes, such as enhanced
performance, productivity, efficiency, cost-effectiveness, and customer satisfaction and service
quality. However, on the other hand, it is the responsibility of organisations to ensure all legal,
moral, and ethical guidelines on how to use these technologies in HRM, as they can affect
workers and the working process.
Most importantly, it is vital to understand how employees perceive and behave in response
to technological advancements. Thus, based on this review, we suggest that developing
favourable and supportive social-technological interventions such as flexible organisational
structure, supportive leadership, ethical workplace culture, change and fear management
training, upskilling employees and redesigning job roles will lead to enhanced positive
outcomes in the workplace. Moreover, we put forward that creating favourable personal factors of
employees, such as personality and emotional intelligence, also assist in creating those positive
results for organisations. Finally, our review also greatly recom- mends the importance of AI-
human configurations at the workplace to optimise the benefits offered by technologies.
Despite the increasing attention among scholars on AI and intelligent based technologies in
augmenting human potential and elevating organisational outcomes, detailed research
concerning its effect, practices/ techniques to effectively use AI-human configurations, and other
related topics largely remain unexplored. Nevertheless, this systematic literature review unveiled
many potential research areas and developed research propositions. For example, future studies
might want to theorise what a priori conditions organisations (e.g. cultural and strategical
influences) need to adopt for an AI-driven HRM function and then test their effects on
employee and organisational level to verify its effectiveness.
We further suggest scholars examine organisational and HRM approaches by making choices
regarding delegation of work and decision-making between humans and AI technologies for
achieving a better combination between the human-AI interplay at work. Kshetri (2021)
provides ten case examples of AI usage in domestic, government and global multinational
enterprises covering different aspects of HRM’s functional practices, such as recruitment and
selection (e.g. in WeChat recruiting, DBS’s Jim, Talkpush’s Stanley and Ajingas’s talent
management tool) and other talent management, development and utilisation tools (e.g., EY’s
Goldie, Supa Agent’s DIANE, Leena’s AI chatbot and Daeyea’s ‘brain surveillance device).
Therefore, it is crucial to investigate how job redesign and upskilling of employees can be utilised
to facilitate changes in future organisational work. Specific areas of HRM functions, for example,
predictions of human resource planning via AI-enabled HR analytics, personalised coaching on
employee career development, a personalised recommendation for training and upskilling, could
be vital applications for producing insights for HR practitioners to organise well in the future
world of work. Apart from the positive effects, future studies might also look at potential
conflicts at an employee and organisational level. These include conflicts, such as breaches
between human and social robots’ psychological contract, identity struggles and cognitive
dissonance of coping with non-humans and humanoid-based systems at work.
Concluding remarks
Through these contributions and supplementing this with our review of the field and framing
future research agenda based on a systematic literature review for the recent ten years, we
expected to enhance the current knowledge in this emerging field. First, we extend the
knowledge base on the drivers and consequences of the adoption of AI and AI-based intelligent
technologies in international HRM and inform the research audience on the growing
potentiality for further research. This research area is relatively emerging yet timely needed to
be further explored through robust conceptual and empirical research keeping up with dynamic
changes of technological advancement and changing business environment.
Second, we reviewed the extant literature and derived the main focus areas as four key themes
—and the propositions that we have developed for each theme can be explored further in future
studies. Third, the theoretical framework we have developed from this review explicates the
association of constructs in detail and points to new constructs that can be potentially
sensible for further research to provide answers of concern under the review’s focus. This review
and the articles of this special issue will contribute to the literature and lead business
organisations and HR professionals towards facilitating dynamic changes to introduce intelligent
technologies in gaining and securing competitive advantages.
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A Study on Trends and Challenges in Global HRM
Mrs. A. Mary Francina

Associate Professor & HOD, Dept. of Business Management,
St. Joseph’s Degree & PG College,
Hyderabad, Telangana State, India
ABSTRACT
The advent of the epoch of liberalization and globalization along with the advancements in information technology
(IT) has transformed the world around us. It has brought to centre point the significance of human resources, more
than ever before. The rationale of human resource management (HRM) is to enable appropriate deployment of
human resource so that the quality culture can maintain and satisfy the customers not only in national level but
also in global level.
In a competitive scenario, effective utilization of human resources has become necessary and the primary task of
every organization is to identify, recruit and channel competent human resources into their business operations for
improving productivity and functional efficiency.
Emergency of trade blocks with the formation of different economic and political significantly changed the
business environment in terms of competition, liberalization and open end marketing opportunity. Business
environment become global business environment.
Globalization of business has probably touched the HR managers more severely than any other functional heads.
The HR executives needs to give international orientation to whatever they do – employee hiring, training and
development, performance review, remuneration, motivation, welfare, or industrial relations.
This paper focuses on the theoretical framework of global HRM and also highlights the trends and challenges of
the International and Multi National Companies. Data for the research article is collected through literature
review from Books and websites.
Key Words: Liberalization, HRM, Global Market, Global HRM, MNC’s
INTRODUCTION:
With the advent of globalization, organizations - big or small have ceased to be local, they have become
global. This has increased the workforce diversity and cultural sensitivities have emerged like never
before. All this led to the development of Global Human Resource Management.
Even those organizations who consider themselves immune to transactions across geographical
boundaries are connected to the wider network globally. They are in one way or the other dependent
upon organizations that may even not have heard about. There is interdependence between organizations
in various areas and functions.
The preliminary function of global Human Resource Management is that the organization carries a local
appeal in the host country despite maintaining an international feel.
GLOBAL HRM- MEANING AND DEFINITIONS

Global human resource management is all about the world wide management of human resources –
Process of sourcing, allocating, and effectively utilizing their skill, knowledge, ideas, plan and
perspective in responding to TQM.
The process of procuring, allocating and effectively utilizing human resources in an international
business is called Global HRM or International Human Resource Management or IHRM.
Global Human Resource Management is the process of sourcing, allocating and effectively utilizing
human resources in a multinational organization.
The process of acquiring, designing and effectively using the human resources in a Multinational
company or organisation, while trying and maintaining the balance of integration and differentiation of
HR activities in the foreign location.
Global/ IHRM or International Human Resource Management is the process of employing competent
people across all the nations in which the company spans and effectively utilizing the talent of these
human resources in the organization to achieve the company’s mission statement.
Global HRM can be defined as set of activities aimed managing organizational human resources at
international level to achieve organizational objectives and achieve competitive advantage over
competitors at national and international level.
Global HRM includes typical HRM functions such as recruitment, selection, training and development,
performance appraisal and dismissal done at international level and additional activities such as global
skills management, expatriate management and so on.
Scyllion (1995) defined IHRM as ‘the HRM issues and problems arising from the internationalization of
business, and the HRM strategies, policies and practices which firms pursue in response to the
internationalization process
IHRM is the management of HR in business operations in at least two nations
OBJECTIVES OF THE STUDY

1. To study the theoretical framework of Global HRM
2. To study the dimensions of Global/IHRM
3. To study the differences between Domestic HRM and Global HRM
4. To study the objectives of global HRM
5. To study the trends in global HRM
6. To study the challenges and mechanisms to cope up with challenges of Global HRM
RESEARCH METHODOLOGY
Data for the research paper is collected through literature review from text books and websites.
OBJECTIVES OF GLOBAL HRM

 Create a local appeal without compromising upon the global identity.
 Generating awareness of cross cultural sensitivities among managers globally and hiring of staff
across geographic boundaries.
 Training upon cultures and sensitivities of the host country.
DIMENSIONS OF GLOBAL/ IHRM

According to P.V. Morgan: IHRM is the interplay among 3 dimensions:
 ƒ HR Activities
 ƒ Types of employees
 ƒ Types of Countries
(Source: ad opting from P.V.Morgan, IHRM: Fact or Fiction. Personnel Administrator, Vol 31, 9 (1986)
pp
44)
1) Broad activities of IHRM – procurement, allocation and utilization of human resources cover all the
six activities of domestics HRM i.e, HR planning, Employees Hiring, Training and Development,
Remuneration, Performance Management and Industrial Relations.
2) The three national or country categories involved in IHRM activities are:
 The host country where subsidiary may be located
 The home country where the company has its head quarters and 
Other countries that may be sources of labour or finance.
3) The three types of employees of an international business are:
 Parent Country Nationals (PCNs): A parent-country national is an employee working in a
country which is not the country where his origin is based. He is also known as an expatriate. When
these employees work for long periods (perhaps 4 –5 years or more) in the parent country they run the
risk of being termed as “de facto” employee in the host country and subsequently the labor laws of the
host country apply.
 Host Country Nationals (HCNs): These employees of an organization are the citizens of the
country in which the foreign subsidiary is located.
 Third Country Nationals (TCNs): These are the citizens of a country other than the country
where the organization is headquartered or the country that is hosting the subsidiary.
For example, IBM which employs Australian citizens in its Australian operations, after sends US
citizens to Asia Pacific countries on assignment, and may send some of its Singaporean employees to its
Japanese operations.
DOMESTIC HRM VERSES GLOBAL HRM

HRM is involved with the management of employees only in one country while Global HRM is into the
management of employees in the three nation categories i.e., Parent Country, The host Country and
Third Country.
HRM role includes hiring people, retaining them, negotiating their salary, performance management and
retention etc. whereas Global HRM plays a key role in the achievement of a balance between the need
for control and coordinator of foreign subsidiaries and the need to adapt to local environments. Domestic
HRM is implemented at national level and Global HRM is done at international level
The HR department does not have to deal with cultural differences as majority of the employees belong
to the same social community while the IHRM department has to overcome multicultural differences to
run a local subsidiary of the parent country.
Domestic HRM is concerned with managing employees belonging to one nation and IHRM is concerned
with managing employees belonging to many nations (Home country, host country and third country
employees)
Domestic HRM is concerned with managing limited number of HRM activities at national level and
IHRM has concerned with managing additional activities such as expatriate management.
Domestic HRM is less complicated due to less influence from the external environment. IHRM is very
complicated as it is affected heavily by external factors such as cultural distance and institutional factors.
TRENDS IN IHRM
 Global business process redesign, the pursuit of a global centre of excellence strategy and the global
redistribution and re-location of work.
 Absorption of acquired businesses, merging of existing operations on a global scale, the staffing of
strategic integration teams, and attempts to develop and harmonize core HR processes within these
merged businesses.
 Rapid start-up of international operations and organisation development as they mature through
different stages of the business life cycle.
 Changing capabilities of international operations with increased needs for up-skilling of local
operations and greater complexity.
 Need to capitalize on the potential that technology affords the delivery of HR through shared
services, on a global basis, whilst ensuring that local social and cultural insights are duly considered
when it is imperative to do so
 Learning about operating through formal or informal global HR networks, acting as knowledge
brokers across international operations, and avoiding a “one best way” HR philosophy
 Identity problems faced by HR professionals as they experience changes in the level of
decentralization/ centralization across constituent international businesses.
MAJOR CHALLENGES IN GLOBAL HRM

Employee and family adjustments: More involvement for parent-country & third-country nationals,
Housing arrangements, Health care, Remuneration packages, assist children left behind in boarding
schools and local regulation and tax policies.
Selecting the right person for the foreign assignments: International placements should involve right
person with KSAA (Knowledge, skill, attitude, ability) to adapt and to manage International assignments
Communication: HR Managers crucial role is to help employees deployed in the foreign country learn
the local language and also assist them to learn the gestures and body language.
Handling Multicultural / Diverse Workforce: Dealing with people from different age, gender, race,
ethnicity, educational background, location, income, parental status, religious beliefs, marital status,
geographical locations, ancestry and work experience can be a challenging task for HR managers. With
this, managing people with different set of ideologies, views, lifestyles and psychology can be very
risky. Effective communication, adaptability, agility and positive attitude of HR managers can bind the
diverse workforce and retain talents in the organization.
Managing Change: Bringing change in organizational processes and procedures, implementing it and
then managing it is one of the biggest concerns of HR managers, as the ideology and mindsets of
employees are affected by change. Business environment is so volatile. Technology keeps changing
every now and then. All thanks to globalization. Upgrading the existing technology and training people
for them is a real headache for HR department. The success rate of technology change depends how well
HR Department can handle the change and manage people issues in the process.
Retaining the Talents: Globalization has given freedom to working professionals to work anywhere in
the world. Now that they have endless lucrative opportunities to work, hiring and retaining the best
industry talent is no joke. Maintaining harmonious relations with them, providing excellent work
environment and offering more remuneration and perks than your competitors can retain and motivate
them.
Conflict Management: HR managers may it be domestic or global HRM should know how to handle
employee-employer and employee-employee conflicts without hurting their feelings. Although it is
almost impossible to avoid conflicts among people still handling them tactfully can help HR managers to
resolve the issues. They should be able to listen to each party, decide and communicate to them in a
convincing manner in order to avoid future conflicts.
Managing Attrition: Attrition has become a major global challenge for companies like the IT major,
Infosys that has seen unprecedented attrition among its employees in recent months. The situation has
deteriorated to the extent that the company is having to address investor and analyst queries about this
issue and has had to come up with a plan to tackle the same. The point here is that attrition in well-
known companies affects their brand value and their brand image and considering the fact that
companies like Microsoft and Unilever as well as P&G are respected globally for their HR practices,
attrition in these companies dents the carefully crafted image of being people friendly. This is the reason
why the blue chip companies take attrition seriously and to the point where Steve Balmer (the former
head of Microsoft) is reported to have gone through all the exit interview forms of the employees.
MECHANISMS TO COPE UP WITH CHALLENGES OF GLOBAL HRM

1. Managing the shift from international human resource management (IHRM) to global HRM:
Traditionally, IHRM has concerned managing an international workforce – the expatriates, frequent
commuters, cross-cultural team members and specialists involved in international knowledge
transfer. Global HRM is not simply about covering these staff around the world. It concerns
managing IHRM activities through the application of global rule- sets.
2. Enabling capability development on a global basis: Employees should be recruited and developed
based on global competencies. Capability development should be a vital objective of global HRM.
3. Ensuring effective knowledge management: Creating, managing, sharing and utilizing knowledge
is a key driver and critical tool for organizational survival, profitability and competitiveness. To
manage knowledge effectively organizations should focus on three components- PPT- People,
Process and technology and widespread these components globally according to the implied needs of
the people and organisation.
4. Providing HR services cost-effectively: Global companies should have tie ups with the domestic
HR Service providers to enter into the foreign markets especially to understand the cultural
complexities and also to gain cost advantage.
CHANGING SCENARIO
1980’s : Majority of the multinational organizations’ had decided that splitting up the HR function on a
country-by-country basis when the rest of the organisation was increasingly aligned behind global lines
of business was not helping the function to achieve its objectives. However, concerns about diversity in
employment law and the continuance of strong national influences on the employment relationship
meant that total alignment of the HR function with other business processes remained problematic. As a
compromise, many organizations’ installed global HR directors as an extra layer in the reporting
structure in order to create a position that acted as a strategic business partner. However, the result was
often confusing as HR functions attempted to interweave their day-to-day administration work with the
more strategic activities open to them.
1990’s: The advent of shared service thinking provided the opportunity to transform HR structures.
There does not appear to be a common path to the internationalisation of shared service models. Many
organizations’ have chosen to create regional centers as part of a single international organisation
structure. Another arrangement has been to use service centres to support global business streams rather
than organise them at a regional level on a geographical basis.
2000’s: e-Enabled HRM (sometimes also called web-enabled) is another significant and developing
trend in international organizations’ that also has extensive resourcing implications for IHR functions. In
its own right it has undoubtedly created a considerable impact on the role and activities of IHR
departments, centrally and locally. The ability to get HRM information to and from, and support on to,
line managers’ –and even employees’ -desks without a formal HRM intervention opens up new and
exciting possibilities allowing HR to focus on its capability and business development roles.
Latest Scenario:
Outsourcing: The issue of outsourcing transactional aspects of HRM has been a source of considerable
debate in recent years. Advocates for the outsourcing of HR activities point to reduced costs, increased
service quality produced by greater economies of scale, increased incentives and accountability for
service providers, and increased access to experts in specialised areas. The most common targets for
outsourcing are those HR activities that can most easily be ring-fenced, and include: payroll, training,
recruitment.
Offshoring: Offshoring is the process of sourcing business services from overseas. Offshoring is not
outsourcing per se, but rather concerns the completion of the same task in a different location where the
costs are significantly cheaper.
CONCLUSION
Thus the global IHRM department has to take the onus of understanding, researching, applying and
revising all human resource activities in their internal and external contexts to know the impact the
processes of managing human resources in organizations throughout the global environment has and
only then IHRM will be able to successfully allow the multinational companies to achieve success
globally. In the globalised world of today firms are going global. International HRM links HRM of
subsidiaries and creates organizational strategies in order to achieve sustainable competitive advantage.
BIBLIOGRAPHY
1. K.Aswathappa & Sadhana Dash (2007), International Human Resource Management,Tata Mc Graw Hill
Companies.
2. Allee, V. (1997), 12 Principles of knowledge management. Training and Development, 51(11), 71-74.
3. http://www.authorstream.com/Presentation/aSGuest129649-1361278-30280964-issues-and-challenges-in-
ihrm/
4. https://xisspm.files.wordpress.com/2012/02/chap-2-concept-of-ihrm.pdf
5. http://www.managementstudyguide.com/necessity-of-employment-contracts.htm
6. https://pdfsecret.com/download/chapter-1-introduction-to-international-hrm_59f737b2d64ab20a75165ffb_pdf
7. https://www.educba.com/domestic-hrm-vs-international-hrm/
Revista Eletrônica
de Negócios
Internacionais
(Internext)
E-ISSN: 1980-4865
revistainternext@gmail.com Escola Superior de Propaganda e
Marketing
Brasil
Remondes, Jorge; Vinhas, João

A PROBLEMÁTICA DA EXPATRIAÇÃONA GESTÃO INTERNACIONAL DE RECURSOS
HUMANOS: ESTUDOS APLICADOS EM PME DO CENTRO E NORTE DEPORTUGAL
Revista Eletrônica de Negócios Internacionais (Internext), vol. 9, núm. 3, septiembrediciembre, 2014,
pp. 16-37
Escola Superior de Propaganda e Marketing
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REVIEW OF INTERNATIONAL
BUSINESS
v.9, n.3, p.16-35, Sep./Dec.
2014 http://
internext.espm.br ISSN
1980-4865
Article
THE PROBLEM OF EXPATRIATION IN INTERNATIONAL HUMAN RESOURCE

MANAGEMENT: APPLIED STUDIES OF SMEs IN CENTRAL AND NORTHERN
PORTUGAL
Jorge Remondes1
João Vinhas2
Abstract: The human resources management processes associated with initial or further
internationalization of companies is increasingly present on the agendas of national companies, due to
increasing need for internationalization of the portuguese economy. This article reviews the literature
on the national and international human resource management from the perspective of
internationalization, thus providing a theoretical contribution to this area of research, and presents the
results of an empirical study, based on interviews and questionnaires to managers and employees,
which resulted from the study of two portuguese companies, whose aim was to analyze the sensitivity
of the process of expatriation and repatriation of its employees. It was found developments in both
companies be effective in expatriation, as evidenced by the monitoring of employees and their
families, but still continues to neglect the training and performance evaluation that sometimes does not
reproduce the work done by expatriates. Given the repatriation companies also do not think in a
structured way in charge of assigning the employee upon his return.
Keywords: Management; Human Resources; Internationalization; Expatriation; Careers
1 Doctor in Communication (University de Vigo, UVIGO – Espanha). Professor at the Instituto Superior de
Entre Douro e Vouga – ISVOUGA, Santa Maria da Feira, Portugal, e-mail: jorge.remondes@gmail.com.
2 M.S. in Business Administration (Universidade Lusíada de Vila Nova de Famalicão, Vila Nova de Famalicão,
Portugal), e-mail: joao.faria.vinhas@gmail.com
Introduction
Research into the perspective of internationalisation and management of human resources presented in
this article is a result not only of academic, but also of business motivations. It explores and compiles
theoretical concepts that support the foundation of empirical study that was developed in two small
and medium enterprises (SMEs) in the centre and north of Portugal.
This article presents a theoretical framework on the types of international movement of business
executives, expatriates, their motivations, cultural differences in destination countries, management
and international careers.
Understanding and identifying the procedures followed by companies in the international management
of its employees is crucial to evaluate the sensitivity of the companies to the phenomenon of
internationalisation. Issues such as expatriation, social adjustment, training and adaptation of
employees are therefore present in this investigation.
The theoretical analysis helped to confirm that internationalisation is seen by companies as a way out
of the stagnation of national markets. Although, their expectations fall after entering into emerging
markets, as well as their grand perspective for development. Because of this, internationalisation has
been the watchword not only for multinationals but also for SMEs.
As mentioned by Martins et al. (2012), the relocation of businesses has now become an imperative
result of the profound changes that globalisation has forced. Fifteen years ago, Lemaire (1997) had
alerted him that internationalization appears as a preoccupation in company strategies as companies in
increasingly greater numbers decide to leave the national and regional framework for an international
dimension.
Due to globalisation, this new business environment is associated with the issue of internationalisation
and global marketing posture (VIANA and HORTINHA, 2002), and has seen globalisation converge
with the idea of a globalised economy in which companies have to confront global markets. It appears
then that globalisation is a phenomenon in an evolutionary state, and is one of the drivers of
development factors for companies that forces internationalisation. As Teixeira and Diz (2005)
stipulate, the competitiveness of enterprises increases due to the integration of companies’ competitive
actions through the various countries that form the global market. As recently written by Hill (2012),
globalisation refers precisely to the merging of historically distinct and separate national markets in a
huge global market.
Concerned with the study reality and trends, this research focuses on two case studies of
internationalised Portuguese SMEs, called Company A and Company B for confidentiality reasons, in
order to compare their performed procedures in relation to a literature review based on the following
key assumptions.
Company A is present in the domestic market as a wholesaler and importer of electrical equipment,
but is also present in the PALOP, Spain and Turkey. Company B is dedicated to the installation of
equipment and irrigation systems in the Angolan market.
The option of qualitative research was related to the fact that it allows one to better understand human
resources and what they say and do. This is the essence of qualitative studies according to Myers
(2013). After contacting the companies, we spoke directly with the administration of the companies A
and B, as well as with the expatriate human resources to understand their perspectives and
expectations. The completion of the two case studies enabled a comparison between the measures
adopted by the companies and the literature review’s assumptions, in order to understand what modes
of action were adopted by these companies and whether they were correct to ensure the success in
their internationalisation.
With this research, we tried to broadly examine how SMEs manage their expatriate employees.
Specifically, we sought to: (1) increase knowledge for the management of human resources in the
perspective of internationalisation through a literature review; (2) understand the expatriation process
of the investigated SMEs, and (3) identify likely procedures that would lead to improvements in the
management of expatriate employees.
After section 2 of this article we present a literature review, and in section 3 we explain in greater
detail the methodology used in this empirical study. Section 4 analyses and discusses the achieved
results.
Literature review
As stated in the introduction, this research is part of management, particularly in human resource
management from the perspective of internationalisation. According to the followed methodology, a
theoretical framework for the justification of this work and the development of two case studies is
done.
Types of movement
The first fundamental question that arises for SMEs associated with internationalisation relates to the
temporal factor of movements of its human resources. This displacement may be a temporary shift
with a short duration, namely a maximum of six months (CAMARA, 2008), or may result in the
phenomenon of expatriation, where movement of human resources is longstanding. Dowling and
Welch cited by Camara (2008) reported that there is a distinction between short-term movements that
have a time dimension ranging from 3 months to 1 year, but in terms of objectives are completely
identical. This type of shorter travel is generally adopted by companies when they intended to solve
technical problems that the human resources of the subsidiary company do not have the capacity to
deal with. It is also intended for project management to lead a team to project completion, as well as to
establishment a temporary replacement due to an absence for a certain reason.
Long-term displacement forces companies into a larger organisation of its human resources. This type
of movement presents greater risks than temporary movement, as it requires companies to hugely
invest in the people they want to select for positions in a destination country. The tables below are
selected by companies with expatriates.
Expatriates
Camara (2012) conceived the expatriation cycle in order to help companies structure successful
expatriation. These six parte is part of a cycle: the expatriate’s selection for the hosting subsidiary,
monitoring throughout the year, performance evaluation, remuneration package and reintegration and
career. Still Camara (2011) characterises the forms of expatriation as Table 1.
Satisfaction of Acquisition of
needs knowledge
Long duration Representation of the Development of skills

parent company
Short duration Resolving problems Career progression
Table 1: Purpose of Expatriation

Fonte: adapted from Camara
(2011)
For Rego and Cunha (2009), expatriate management is of such relevance that it is sometimes regarded
as synonymous with international human resource management.
The so-called management of expatriates by expatriation is considered by Tung (cited by Man and
Tolfo (2008)) as a set of steps that address issues ranging from recruitment and selection of candidates
to the integration of expatriates in a new business environment. Some companies have a specific
department to monitor the expatriation, whilst others delegate this responsibility to the human
resources department.
In the opinion of Aires (2007), an expatriate chosen by the company is (in large part) done by internal
recruitment, because it is more economical, faster and allows a more effective evaluation, since the
company is cognisant of their potential. The cited author highlights some disadvantages of internal
recruitment: conflicts of interest between employees; the frustration of the excluded and the "peter
effect"; i.e., the promotion of employees to positions they are not competent enough to hold. It is
worth noting that Bilhim (2006) states that success in the domestic market cannot ensure success
abroad.
Aires (2007) also studied the advantages and disadvantages of external recruitment. The author
identified the entry of "new blood", the strengthening of candidates from databases and an increasing
awareness of the company as advantages. On the other hand, disadvantages include the length of the
recruitment process, the risk, currently unmotivated employees and the need for an adjustment period
for those entering the company.
With regard to the profile of expatriates, Finuras (2007) highlighted the following talents and skills
that must be obtained:
• Conflict management skills;

• Decision-making skills;
• Likes challenges;
• Language skills;
• Flexibility to adjust to critical situations.
Ivancevich (2008) notes that the expatriate manager is more likely to succeed if they have a strong
desire to work in another country, and the probability of success decreases if there is uncertainty about
working in another country.
The process of recruitment and selection is complex, but Rego and Cunha (2009) explain some key
factors in a synthesised form that minimise risk (see table 2).
 Technical skills
Specific skills for
the office  Management skills
 Skills "administrative"
 To be familiar with the operations of the headquarter and the local unit
 Tolerance with ambiguity and uncertainty

 Self-confidence
 Goal orientated
 Adaptability and behavioural flexibility
 Intuition
Personality
 Open minded
characteristics and
 Empathy, emotional intelligence
skills
 Communication and interpersonal relationship skills
 Open to experiences
 cosmopolitan orientation
 cooperative negotiation style
 Language skills
 Creativity
 Belief in the mission

 Mission congruence with the manager’s career plan
Motivations
 Interest in cross-cultural experience
 Interest in the destination country
 Willingness to learn about new attitudes and behaviour patterns
 The spouse wants to have an experience abroad

 Adaptive spouse or supporter
Family situation
 Stable marriage
 Favourable children situation
Language skills  • Knowledge of the host country’s language

 • Understanding of non-verbal language. (gestures, smiles, greetings)
Table 2: Relevant factors for the selection of expatriate managers

Source: Adapted from Rego and Cunha (2009)
Cultures
As stated by Finuras (2007), the development of business processes and management practices can be
hindered or can benefit small differences in culture and behaviour. For example, language can
immediately start to create systems of misunderstandings. The author states that expatriates should
know codes of conduct, policies and taxation issues.
Zwielewski (2009) emphasises that the way an expatriate observes cultural differences such as, time
zone, punctuality differences and adaptation to work are factors that influence the expatriate's reaction
to their new environment and the effectiveness of their integration.
Pereira et al. (2005) reiterate that no cultural adjustment by expatriates to the target countries results in
high costs in terms of management performance, customer relations, productivity and operational
efficiency.
It was for these reasons that theories of cultural adjustment of expatriate have been developed. Man
and Tolfo (2008), citing Black et al. (1991), identify an adjustment model for expatriates based on two
essential steps: the anticipated adjustment and the actual adjustment to the foreign country (see Table
3).
Early adjustment Adjustment in the foreign country
Related factors Related factors
Organisational culture Context out of

work
Individual Organisation Work
• Previous  Mechanism • Inhibiting • High novelty of  The

International and factors: the organisational adjustment of
expatriate the family in
experience selection role of culture relation to the
• Intercultural criteria novelty and spouse’s
training- • Support the adjustment
conflict role
before members of the before the step
to play of international
departure to
organisation related adjustment
foreign • facilitating
country factors: to the degree of
clarity of role adjustment
• logistical support to
assist adjustment and
interaction
Table 3: Adjustment model for expatriates
Source: Adapted from Homem e Tolfo (2008)
Rego and Cunha (2009) presented a theory concerning a U-shaped sequential line, addressing the
culture shock cycle an expatriate has in relation to sociocultural adjustment, as seen in Figure.
Adjustment,
Honey moon satisfaction
Tourist phase Recovery
Enthusiasm
Sociocultural Cultural
adjustment Shock
Crisis
During the expatriation
Figure 1: Culture shock cycle and sociocultural adjustment of expatriate

Source: Rego and Cunha (2009)
This theory has two U-shaped stages and a high depression, and is concern with the adjustment of the
expatriate over time.
The family is, of course, important to expatriation, which is why Zwielewski (2009) emphasises the
role of family support. The author states that the family is also undergoing some challenges that must
be reported, as spouses accompanying their partners have to abandon their careers and deal with issues
related to loneliness. Children may suffer some issues and not adapt well to their new school context.
Pereira et al. (2005) emphasise that the family with the expatriate has a key role, not only in the
adaptation, but also for the mission as a whole. These authors also stated that the transfer of family
members to the host country may be initially beneficial, but when misapplied and not supported can
cause major problems for the expatriate and thus for the company.
Pessoa and Rodrigues (2012) report that the fact companies have a department of resources that is also
a facilitator, not only in the integration phase but in all others: recruitment and selection, training and
care.
Although, Finuras (2011) points out some common reactions and feelings experienced by expatriates
during the culture shock: disorientation; lack of control; depression; aggressiveness; resentment;
insecurity; frustration; curiosity; anxiety; disappointment; missing others; annoyance and fear.
International management
With the development of the whole expatriation process, and by going through the decision of
internationalising a company, the choice of expatriates and the various factors inherent in placing
them in the host countries, comes is the ultimate question, which can be identified with the preparation
and training of selected human resources. Camara (2008) and Rego and Cunha (2009) identified
executive training activities that companies can explore, namely: cross-cultural training; language
training; in management, leadership, negotiation, international marketing and conducting meetings
abroad.
Hodgetts cited by Chew (2004) states that these types of training seek to change some behaviours and
attitudes of employees to increase the likelihood of them achieving the defined and proposed
objectives of the company. And Balcells quoted by Rubio (1999) reiterates that training should be a
tool for development of enterprises to facilitate the involvement, commitment and motivation of
human resources.
Finally, we emphasise that a properly structured expatriation cycle implies that companies pay special
attention to the repatriation process, which in most cases they do not. Vidal et al recently cited by
Spohr (2011) state that repatriation is the return of the employee to the parent company after an
assignment abroad. Zickic quoted by Spohr (2011) says that repatriation corresponds to a process that
should begin a few months before the return of the expatriate, and extends during the first months of
rehabilitation to the home country.
Bergstedt and Lundstrom (2003) report that during the repatriation process, the company should
support the expatriate and his family when re-entering the country to adapt to these changes in the
social and organisational environment. These two authors also stress that returnees sometimes have
difficulties and feel frustration due to companies not creating opportunities for returnees, regarding the
application of skills and knowledge acquired during international experiences.
However, Peretti (2007) points out that sound management of expatriates will be facilitated by the
Global Compensation System (GCS) shown in Figure 2.
GCS
Extrinsi c rewards
Intrinsic rewards
Direct compensation Indirect compensation
Figure 2: Global Compensation System

Source: Adapted from Peretti (2007)
Intrinsic rewards derive from the content (skills, tasks, autonomy and feedback obtained on the quality
of work) and the work context (working conditions, relationships with colleagues and working hours).
Extrinsic rewards include direct compensation (basic salary and remuneration based on performance
incentives and premiums) and indirect compensation (development programs, protection and payment
for time not worked).
Therefore, the management of human resources in an international context has several implications.
There is no doubt that the international context of the companies increases the complexity of its
environment and management, not only human resources, but also, as stated Champoux (2011),
countries vary in cultural orientation, types of labour laws, as well as in traditions and the economy.
At a management level, Johnson and Turner (2010) and Noe et al. (2008) point out that when a
company extends its geographical reach and penetrates market, it needs the support of human resource
management to aid the financial situation, marketing management and operational decision-making.
Therefore, generally the management of human resource activities in an international context include:
• Planning of human resources;
• Training and professional and personal development;
• pay and benefit policies;
• Management of the work environment and industrial relations.

After making a review of the current literature regarding the types of travel, expatriation cycle, the
importance of different cultures and international human resource management, below we present the
methodology applied in the context of case studies.
Research methodology
Smudge (2004) points out that the case study is an appropriate strategy to evaluate contemporary
events, mainly when relevant behaviour cannot be manipulated. The author Yin, cited in Smudge
(2004), reiterates that a case study requires a very thorough investigation in order to maximise the
researcher’s access to sources of evidence to eliminate distorted representations.
In this research, conducting case studies with SMEs was done qualitatively in order to understand the
meanings and characteristics presented by the interviewees, and questionnaires were completed by
expatriate professionals.
This qualitative approach, rather than a quantitative one, is due to the differences of its features, as
qualitative study allows us to focus on factors such as recognition and analysis of different
perspectives, allowing for a greater reflection on the study conducted by the researcher, and
essentially provides a greater number of methods and perspectives for the conclusions of the studies.
As the author Flick (2005) points out, the qualitative research approaches are extremely
comprehensive methods which can cope with the complexities of the case studies. The author also
states that the choice of method must relate to the intention of the researcher to study and not quantify,
and to be an exemplary approach that accounts for variables that have an integrated complexity of the
everyday environment. The author also emphasises that qualitative research provides an interaction
between the researcher and the field of study and its participants that allows for the perception of
impressions, irritations and feelings that are critical data for research.
Maxwell cited in Spohr (2011) states that qualitative approaches focus on people and some specific
situations that present important characteristics, and place an emphasis on words and not numbers.
The author presents some aspects of qualitative study that perfectly serve the needs of this research:
• Understand the meaning of the situations in which human resources are involved, and
thus realising the meaning that participants attach to their expatriation process.
• Understand the particular context of the expatriation process, in order to realise the
factors inherent to this process and tailor the study to a small number of professionals, thus enabling
one to analyse in detail their perceptions and motivations.
• Understand the process in which actions occur; that is, to comprehend the entire
expatriation process, from the selection of expatriates to their integration in the host country, and the
support provided by the company to aid adaptation and expatriation.
With the definition of this option in terms of a methodology to be followed, it was determined that it
would be essential to conclude a protocol for each case study (see Appendix) to formalise the
relationship of researchers with SMEs in analysis.
These protocols were extremely important because they enabled us to identify the key issues of the
subject matter, and also allowed the anticipation of problems in the relationship of researchers with
companies, since the procedures and the analysis of information had been previously defined. The
protocols also included an overview of the project that led to the definition of objectives, the main
sources of necessary information, a calculation for the data collection time period and an indication of
the case study’s final product. After assigning the protocols, we proceed to the content analysis,
according to the sources of information set out in section 3.1, which then forms the basis for a
summary of the content analysis, followed by explanations. Finally, a formal structured content
analysis, as suggested Flick (2009) cited by Mozzato and Grzybovski (2011), is used in this article.
Sources of Information
The data collection techniques used in this study were as follows:
• Internal documents: as Smudge stresses (2004), document analysis in research is a
practice that has been used since the 1930s in many areas of science, particularly in management
studies, organizational policy studies and organizational productivity.
• Semi-structured interviews: the option for this type of interview was due to the
possibility of making a combination of open and closed questions that allowed respondents to answer
pre-formulated questions. For the correct structuring of this technique, an interview guide was built in
which the authors outline the issues to be addressed, a basic guide to lead the respondent to intervene
in a meaningful way and to address issues that were not previously defined, which was also crucial to
ensure treatment of all relevant topics previously defined. Note that these interviews were constructed
and applied to the employees of two SMEs under study, so as to suit their characteristics, and thereby
establish an appropriate type of conversation in which the interviewer can decide the timing and
systematisation of the interview. Also note that the interviews were previously scheduled and
recorded to allow for subsequent transcriptions to collect all relevant data.
• Questionnaires: In addition to the interviews, this research also used questionnaires

as a non-participant observation instrument. They followed a sequence of predefined questions that
were answered by employees, which was intended to detail expatriates’ opinions, motivations and
information to be studied. The questionnaires were made available through the direct administration,
and were answered by expatriate employees of the companies. The participants then sent the
questionnaires by email for evaluation. The difference of obtaining data for the administration and
employees is due to the fact that we were able to do conduct interviews with the administration since
they were in the country. The option of using questionnaires is related the failure to personally contact
employees in the host countries.
• Direct observation: This was another techniques used to conduct this research that
consisted of being present in the companies. The purpose was to research documents, conduct
interviews and try to observe the relationship between managers and employees to add additional
information to the topics of study being performed.
Selection of companies and respondents

We also needed to do a preliminary selection of the companies for the case studies. This selection was
made with specific criteria that are crucial to the correct and effective implementation of the study,
namely:
• National SME;
• internationalised SME;
• Has expatriate employees;
• Experience with the process of internationalisation.
The selection of companies for the study was done through the network of personal contacts of
researchers.
Gaskell in Spohr (2011) points out that there is no specific method for qualitative research to select
interviewees / respondents. In these case studies respondents were from responsible companies, who
proceeded to select respondents from the following criteria listed below:
• Belonging to the framework of a Portuguese company;
• Being an expatriate professional;
• Living abroad for a minimum period of one year.
We can say that after the selection and contact with companies present in this research, data was
provided from selected employees with the correct requirements, and thus the achievement of these
case studies.
Analysis and discussion of results
As explained in Section 3, this research proceeded to collect data in enterprises as a source of
information. This data was analysed and filtered to select relevant data. The next step was to organise
this data and obtain answers to fundamental questions of this investigation. Finally, we verified and
interpreted the filtered data in order to enable researchers to properly coordinate the development of
the case study and outline the assumptions to be addressed for its completion.
Results from Company A

The research was performed by conducting an interview with managers in order to understand the
perspectives, procedures and expectations of how the company defines and implements the
expatriation of its employees on international missions.
This study also prepared a questionnaire for five employees of the company who currently are
expatriates.
These questionnaires were thoroughly prepared in order to focus on key variables and to receive
information that expatriates had previously gained during their expatriation. This allowed us to
understand the needs and perspectives of employees for achieving success in the tasks they had been
performing.
This study aimed to interpret data provided by managers and five employees of Company A, which
was later compared with the insight and awareness of the two parties involved. After comparing data
from the two parties, a review of the literature was done, where we identified procedures that are
necessary to follow in order to find an effective and profitable expatriation.
The conducted research focused on Company A’s market, namely the Angolan market. It is an
extremely important market to the company, and has inherent aspects relating to expatriation, such as
cultural adjustment and family monitoring.
It was found that there were some aspects of this process which the company did correctly, and are
comparable to the expatriation requirements stated by Camara (2011). It was also concluded that
there were some key necessities that the company did not practice. The positive aspects practiced by
the company includes:
• Previously set profiles of suitability to select expatriate employees, which stipulated
the fundamental skills that an expatriate should have;
• Had regular communication between the employee and the company through the
internet and telephone;
• Completed performance evaluation of its employees by analysing results of the parent

company, and fundamentally, the evaluation was performed by the workers’ superiors.
• The company noticed the importance of monitoring expatriate employees’ families

and fully supported the decision of being accompanied by their families to the host country.
• Regarding repatriation, the company claimed that the process is addressed in advance,
which is very positive, and that after the repatriation is completed the company intends to provide
training for employees’ reintegration into the parent company. It is noteworthy that this topic was a
future prospect as no companies’ employees had been repatriated.
• Finally, we highlight the positive way in which the company had proceeded with their
internationalisation, as well as their investment in expatriate employees, which helped lead the
company to succeed in its international integration.
The noted negative aspects include:

• The company had provided training for only one of the five expatriate employees.
This training should have been provided to all employees because it is essential for achieving the
stated goals;
• Lack of training for family members accompanying expatriates, particularly in

preparing them for the culture shock and supporting them in their integration in a new country;
• No communication by the company of the major changes that occurred in the parent
company. These should have been communicated to the employee so that they feel integrated and part
of the company’s overall growth;
Finally, we highlight that the company should have considered the question of the employees’ return,
since they presume that they will assigned the same position held before expatriation. This is a
negative aspect, because the employee has acquired greater responsibility and competences and should
therefore be reinstated in a position compatible with their new status.
Results from Company B

For this research to be comprehensive and effective we studied another company. This allowed us to
compare the procedures and opinions on the subject of human resources management from the
perspective of internationalisation.
A guide was prepared to conduct an interview with an official of the company. He performed the
same interview used to study the first company, which had the same objectives, and an analysis of the
official’s answers were interpreted to find fundamental variables of the respective study.
As a complement to the study done, we proceeded to create a questionnaire for the company’s
expatriate employees.
The purpose of this questionnaire was to find the motivations and perspectives of the employees’
expatriation processes in order to obtain a comparison with the other company's perspective. Please
note that Company B had only one expatriate employee, with some employees moving to Angola
because of the work needs presented by the company.
We highlight some of the variables used in the questionnaire:
• Age;
• Working time in the company;
• Position held before and during the expatriation;
• Family monitoring during expatriation;
• Importance of family monitoring;
• Motivation for expatriation;
• Types of training received by the employee and his family;
• Performance evaluation and mechanisms for the evaluation;

• Expectations regarding the return and integration in the company as well as post to be
filled;
• Review of expatriation mission.
The questionnaire was sent by email to the expatriate employee in order to interpret their perspectives.
With 45 years of age, the employee has been with the company for 13 years and held a position
related to the commercial sector before the expatriation. During his position in the international
market, he became responsible for the international expansion of the company.
As regards to family monitoring, the respondent replied that in his own case it was not done, giving as
a reason the low social stability of the country. He also noted that family monitoring would have been
an extra motivation to solidify the implementation of his mission.
When asked about the reasons for accepting the international challenge, the respondent replied that
financial reasons were the main motive. When addressing the issue of training, the respondents stated
that the company paid for some training, in particular, management skills.
As for performance evaluation, the answer was affirmative; the company undergoes a review which is
done by head of the company, mainly when he travels to Angola. The respondent also noted that the
performance evaluation is performed by the parent company, because it has to share the results from
its international mission.
On the completion of the questionnaire, a question was raised about how the employee imagines his
return to the company and the position he will return to. The employee said that currently the return
happens every six months and that he had no plan to return definitively in the near future. Regarding
the position to take, the employee mentioned that, with the new skills acquired and new
responsibilities, he had the expectation of being allocated to a position corresponding to his current
competence.
Finally to complete the questionnaire, we proceeded to the question of how to rate his international
adventure on balance. The respondent replied that it was extremely positive, because he has new
knowledge of a market that is completely different to Europe, acquired new management, business
and leadership skills. The less positive aspects mentioned included the social state of the country and
the longing for his close relatives.
This second case study also served to find what procedures were correctly applied by the company, as
well as some problems of the implementation of employee management in the international mission.
In relation to positive aspects were:
• The definition of an employee profile for an international mission and description of
some key competences for the employee’s selection;
• Accompanying family with expatriate, or on their own;
• Training provided by the company, as it is an integral factor for achieving success.

We noted the company’s willingness to have training for expatriate families is also important for
success.
• Excellent organisation of the company, its success with internationalisation and the
investment made in the expatriate employee allows them to work more effectively.
The negative aspects, which coincide with Camara et al.’s (2013) observations of possible causes of
expatriation failure are as follows:
• In the expatriate profile description, the company places too much emphasis on the
importance of management skills. The appropriate profile of an international collaborator requires
various skills, such as technical competencies, language skills and leadership.
• Regarding repatriation, the company had not thought about the type of position that
the employee would be assign to after his return, and would probably be placed back into the same
position. This is not recommended because the employee had more powers and responsibilities, and
should therefore be assigned to a position more compatible with this new reality.
Conclusions
The literature review and fieldwork conducted allow us to draw some conclusions on how SMEs
manage their employees in an international context.
In preparing this research, we identified highly relevant issues to be addressed in research, including
motivations, employee training, family monitoring, performance evaluation and repatriation.
With the culmination of the research, we concluded that the two companies under study are beginning
to develop the expatriation processes effectively and to check what employees refer to as ‘preferred
financial issue factor’ to embrace an international challenge. Following the study, it was also found
that SMEs did not provide training for employees in the various aspects inherent to the process of
internationalisation, but instead opted only for specific training in management. As Camara (2008)
and Rego and Cunha (2009) suggest: cross-cultural training; language skills; leadership, negotiation,
international marketing and conducting meetings abroad are integral for success.
It was also found that the SMEs showed a high willingness for families of expatriate employees to
accompany them, as emphasised by Zwielewski in the literature (2009), which in the foreseeable
future can result in increased motivation of the employee and therefore increased productivity. Other
relevant issues relate to the performance evaluation that is done, an aspect Camara (2011) refers to as
one of the important phases of the expatriation cycle. Although, it does not give the best
representation to the parent company based, as it sometimes does not show the full work effort
developed by the employee.
Finally, we highlight that repatriation was a relevant factor for SMEs, as Bergstedt and Lundstrom
(2003) report. However, it was identified that the repatriation process should be better prepared by
SMEs, particularly with regard to the reception of employees and the allocation of positions during the
post-repatriation period.
After concluding the analysis, we found that employees’ satisfaction was due to the support provided
by companies for their international careers. In the analysis of responses to questionnaires, we found
that the expatriation on balance was positive, which is indicative of some success in the human
resource management process of the SMEs in the study.
We can say that despite the process of managing international employees of companies A and B has
some shortcomings, is was implemented effectively as employees were motivated and the
performance of the businesses were positive.
Finally, the performed study was based on a small sample of internationalised Portuguese SMEs and
their employees. It was established that Portuguese SMEs are beginning to show concern for
international human resource management, because they realise that the success of companies is based
on the selection of employees with essential skills to achieve desired objectives.
This research tried to increase knowledge on human resource management from the perspective of
internationalisation and understand the expatriation process in SMEs. This research allowed us to
achieve a relevant comprehension, and consequently, a contribution to researchers, the investigated
SMEs, other companies and managers, who wish to further develop international business with a
better understanding of international human resource management.
Research limitations
Some limitations of the respective research exist, particularly related to the relatively small number of
employees on international assignment, including Company B, which currently only has one
expatriate employee. If a larger number of employees’ response could have been analysed the study
would have had a greater comparison ratio of different perspectives.
Another factor that may be considered a limitation was sending questionnaires via e-mail. If it were
possible to do an interview with each expatriate employee, it would have allowed us to perceive some
elements that are only personal views. As well, visual contact would have allowed us to detect the
emotions felt throughout responses.
We can also consider as a limitation of the study that expatriates were exclusively in the Angolan
market. This means that their perspectives of expatriation could have been influenced by the market in
which expatriates were present.
Suggestions for future research
As for future investigation, we can highlight some areas for study of expatriate employees from
various countries. Suggestions include exploring how different cultures influence the motivations and
perspectives of expatriates.
Conducting studies of the expatriation process for employees who work in developed country markets,
and comparing them to other employees who work in developing country markets could be
interesting, in terms of investigating the cultural adjustment and adaptation of the employee and
family to the different host countries.
Finally, an investigation could be carried out to check what kind of preparation leaders from SMEs
have to develop and apply during the process of internationalisation, as well as the management of
expatriate employees.
The continuity of empirical studies and literature reviews on the problems of expatriation in
international human resource management is necessary and essential.
References
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Industrial) – Lulea University of Technology, Lulea, Swenden. 2003.
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Lisboa: D. Quixote, 2013.
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inovação na gestão das pessoas. Lisboa: Editora RH, 2004.
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280620987_THE_PROBLEM_OF_EXPATRIATION_IN_INTERNATIONAL_HUMAN_RESOURCE
_MANAGEMENT_APPLIED_STUDIES_OF_SMEs_IN_CENTRAL_AND_NORTHERN_PORTUG
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INTERNATIONAL

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Artificial intelligence – challenges and

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Artificial intelligence – challenges and

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Selection of articles and qualitative assessment

Data coding and analysis

Implications for theory and practice

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GLOBAL HRM- MEANING AND DEFINITIONS

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Remondes, Jorge; Vinhas, João

Available in: http://www.redalyc.org/articulo.oa?id=557557884005

THE PROBLEM OF EXPATRIATION IN INTERNATIONAL HUMAN RESOURCE

Keywords: Management; Human Resources; Internationalization; Expatriation; Careers

Long duration Representation of the Development of skills

Short duration Resolving problems Career progression

Table 1: Purpose of Expatriation

• Conflict management skills;

 Tolerance with ambiguity and uncertainty

 cooperative negotiation style

 Belief in the mission

 Interest in the destination country

 Willingness to learn about new attitudes and behaviour patterns

 The spouse wants to have an experience abroad

 Favourable children situation

Language skills  • Knowledge of the host country’s language

Table 2: Relevant factors for the selection of expatriate managers

Early adjustment Adjustment in the foreign country

Related factors Related factors

Organisational culture Context out of

• Previous  Mechanism • Inhibiting • High novelty of  The

During the expatriation

Figure 1: Culture shock cycle and sociocultural adjustment of expatriate

Direct compensation Indirect compensation

Figure 2: Global Compensation System

• Training and professional and personal development;

• pay and benefit policies;

• Management of the work environment and industrial relations.

• Questionnaires: In addition to the interviews, this research also used questionnaires

Selection of companies and respondents

• Has expatriate employees;

• Experience with the process of internationalisation.

• Living abroad for a minimum period of one year.

Results from Company A

• Completed performance evaluation of its employees by analysing results of the parent

• The company noticed the importance of monitoring expatriate employees’ families

The noted negative aspects include:

• Lack of training for family members accompanying expatriates, particularly in

Results from Company B

• Working time in the company;