CENTRE FOR UNIVERSITY OF HERTFORDSHIRE PROGRAMMES

Assignment Cover Page

Module INTERNATIONAL HUMAN RESOURCE Module
HRM 4101
Title: MANAGEMENT Code:
Assignment
Individual Assignment Date: 21/11/2022
Title:
Student Information: (Do not include your name unless your tutor has told you to do
so.)
Name* Student ID*
CHONG WAI TSENG J21035646 ☒
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have been properly acknowledged as references or quotations. In addition, I(we) agree
that the electronic version of this assignment may be subject to electronic analysis for the
detection of collusion, plagiarism and other forms of unfair advantage.
Table of Contents

1.0 Introduction..............................................................................................................1

2.0 Factors that result in differences between domestic and international HR.............2

2.1 Culture distinction.................................................................................................2

2.2 Language proficiency...........................................................................................3

2.3 Difference in employment law and regulation......................................................3

3.0 Localization of HR Practices ...................................................................................5

3.1 Reasons MNCs might want to localize their HR practices ..................................5

3.2 Country-of-origin effect ........................................................................................7

3.3 Host-country effect ..............................................................................................7

3.4 Institutional context impact HRM practices .........................................................7

4.0 Expatriate pre-departure training.............................................................................9

4.1 Benefits of expatriate pre-departure training........................................................9

4.2 Why some MNCs reluctant to provide such training..........................................11

4.3 Position/stand- should be conducted or should not be conducted....................12

5.0 Recommendation...................................................................................................13

6.0 Conclusion.............................................................................................................14
1.0 Introduction 57

International HRM has long recognized that certain competences are important
for success when working under pressure in many nations and with people from various
cultures (Shaffer et al., 2006). This assignment will first identify the factors that lead to
differences between local and international HR. The localization of HR processes and
the pre-departure training for expatriates will next be discussed.
2.0 Factors that result in differences between domestic and international HR 424

2.1 Culture distinction 140

Figure 1: Cultural dimensions between China and the United States (Hofstede Insights,
2021)

- International HR has to deal with the challenges of navigating different

cultural norms because they employ employees from many different
nations while only one country's workforce is managed by Domestic HRM
(Cuhlova, 2015). The opposing viewpoint in international HRM contends
that individual perceptions and preferences vary because of culture
variations (Laurent, 1986), which influence organizational behavior,
including work motivation, communications, inmates, work orientation,
goal formulation, performance evaluation and rewarding, decision-making,
and management style (Hofstede, 1980; Rollinson & Broadfield, 2002).
For example, high power distance countries like China are those in which
choices are more frequently made by the superior without input from the
subordinates. Both bosses and employees view one another as being
existentially inferior (Taras et al., 2010). In contrast, leaders and
subordinates are viewed as partners in cultures with little power distance.
Employees believe they have a right to take part in choices that affect
them (Sagie and Aycan, 2003).

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2.2 Language proficiency 145
- Language enables an individual to communicate sophisticated ideas and
information (Kim & Mattila, 2011). When there is a language barrier,
efficient two-way communication is made considerably more challenging
(Boyacigiller & Adler, 1991; Rabbani et al., 2017). International HR must
take into account whether the foreign country speaks English, the global
language, or whether they have a different native language, while
domestic HR is regarded as adept in local language (Fredriksson et al.,
2006). For instance, Brazilians speak Portuguese as their first language.
As a result, language barriers coupled with a lack of English competence
characterize Brazil's major job market, which has created a significant
difficulty for multinational firms in their global assignee recruitment and
selection processes (Wöcke et al., 2017). In a survey, 61% of recruiting
managers in Brazil reported having problems filling their open positions,
according to ManpowerGroup (2015), an HR consultancy company.
Among the 42 nations surveyed, that was the fourth-highest percentage of
managers who reported hiring issues.

2.3 Difference in employment law and regulation 139

- The fact that domestic HRM does not have to take other nationals’
legislation and regulation into account while managing labor is a key
distinction between international HR and domestic HR (Bornay-
Barrachina, 2019). This is crucial as employer-employee relations are
governed by employment law. For instance, if an employee works more
than six hours a day, he/she has the right to one uninterrupted 20-minute
rest break during the workday, which is the guaranteed benefits stated in
UK compensation laws (Gov.UK, 2015). Whereas in Kenya, its legislation
does not specify when employees should take breaks throughout the
workday, although each employee is entitled to one day off after six
straight days of work (MacDougall, 2022). The different compensation
laws will also have an impact on an employee's motivation and job
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satisfaction, which in turn will affect how well they perform at work (Kadir
et al., 2019).

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3.0 Localization of HR Practices 688

3.1 Reasons MNCs might want to localize their HR practices 436

3.1.1 Cost saving 150
- Employing local staff can save expenses for MNCs because
expatriation has a high failure rate and high cost (Stevenson,
2017). Many MNCs have made the expatriation and repatriation
of management and technical workers a top priority.
Nevertheless, due to home-country attitudes and cultural
differences, the real expatriation failure rate and the cost of
departure failure remain high (Black, 1988). An expatriate failure
may be known as the early return of an expatriate to their home
country before the scheduled assignment time has ended (Hill,
2002). According to Solomon's analysis of 50 Fortune 500
companies, 20 to 25% of all expatriate assignments fail,
according to Solomon (Solomon, 1994). When all expenses are
taken into account, the price for each foreign manager who
departs early is close to $1 million (Shaffer & Harrison, 1998).
The danger of expatriate failure and the ensuing financial loss
may be successfully minimized by HR localization, lowering the
overall compensation cost following localization (Law et al.,
2004).

3.1.2 Building a solid reputation in the local community 134

- While performing their duties, local workers could pick up a lot
of sophisticated and advanced management knowledge from
the parent company (Rui, 2010). These cutting-edge
experiences and management techniques may then be shared
with other local businesses through staff transfers and
information exchanges. This might raise the general
management standard of the businesses in the host nation.
Additionally, the host nation will feel good about it, which will

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 create a positive environment for its functioning Thus, localizing
HR practices could as well increase employee retention and
engagement (Summa Linguae, 2021). MNCs may help the host
nation by hiring local workers in foreign markets, which can help
with the local employment issue to some extent. It may boost
customer confidence and affinity in the host nation, which will
help the company sell its goods and services (Kobrin, 1988).

3.1.3 Wider pool of talent that speaks the local language 152

- The talent pool can be bigger when MNCs are prepared to

employ locally since local individuals would have a difference of
skills and expertise (Skrzypinski, 2020). If an MNC needs
specific abilities that aren't even present in the local region, this
would show its value. MNCs could be pickier if they choose from
a broader talent pool. Hiring locally may imply settling for
someone who is only a pretty close match to what the MNC
requires (Holton, 2021). By broadening its search, MNC could
locate the ideal hire: someone with the exact background they
need as well as a working style that is similar to them. Besides,
locals are proficient in the local language and able to utilize local
resources that influence operations smoothly (Stevenson,
2017). This is crucial considering language has historically
served as the core of cultural identity and provides the local
market a method to comprehend the message that MNCs want
to convey (Chemla, 2021).

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3.2 Country-of-origin effect 58
When subsidiaries' HRM procedures are impacted by HQ's home
country's national business system, a 'country-of-origin' effect occurs (Ferner,
1997). Organizational business environment elements from the country-of-
origin have an impact on HRM practices. The country-of-origin effect makes
an effort to demonstrate how the headquarters of a multinational firm affects
the overall human resource management strategy in the foreign subsidiaries
(Elango & Sethi, 2007).

3.3 Host-country effect 87

Host-country-effect describes the adjustments that an organization must
make to its HR procedures, legal obligations, and business policies, among
other things, in order to establish operations in a nation other than its place of
origin (Budhwar & Debrah, 2001). The multinational subsidiary' policies and
practices are shaped by the host country effect. These variables include
several elements of the external business environment. In other words, the
external business system that develops from cultural traits and power in
connection to the organization determines the HRM practices in the host
nation (Kokkaew & Koompai, 2012).

3.4 Institutional context impact HRM practices 107

Human resource planning is impacted by a few government policies,
including labor policy, policy for reserving employment for various
communities and sons-of-the-soil, etc. (Looise, 2015). For instance,
according to the United States Department of Labor (2008), there is no legal
limitation on the weekly hours that an adult worker can work, but the Fair
Labor Standards Act establishes requirements for overtime compensation in
both the public and commercial sectors. In Singapore, however, an employee
is only allowed to work a maximum of 8 hours per day or 44 hours per week

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(Ministry of Manpower Singapore, 2022). The difference in employment law
could hence impose penalties if the MNC does not comply with.

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4.0 Expatriate pre-departure training 707

4.1 Benefits of expatriate pre-departure training 459

4.1.1 Minimize culture shock 141

Stress for the expatriate is a natural result of transferring to a
foreign nation. International assignments are typically considered to
be challenging life events (Furnham and Bochner, 1986). Hence,
an expatriate employee’s ability to get through the rough period and
get past their fear and unhappiness will have a direct impact on
how well they adjust to the cross-cultural setting and how well they
perform at work in the host country (Chen, 2019). Throughout a
pre-departure training, it encourages the growth of cross-cultural
competencies and results in improved performance from staff
members serving on international assignments. The training has
also been demonstrated to hasten a person’s integration into the
host culture and strengthen connections with host country residents
(Caligiuri et al., 2005). An introduction to cross-cultural
communication and dispute resolution will be covered in pre-
departure training, giving expatriates a place to start in their
preparation for working abroad.

4.1.2 Discover the local language 170

Language barriers between people and groups might be the
reason for informal inclusion and exclusion (Marschan-Piekkari et
al., 1999). Expatriates may suffer major repercussions if they are
cut off from regular connection with host country nationals (HCNs).
Consequently, language may be seen as a crucial tool for expats to
adapt to the new culture (Selmer, 2006). Ideally, pre-departure
training will provide individuals traveling overseas with the
fundamentals of the host country’s language (Lauring et al., 2022).
The ability to acquire the language through coursework or pre-

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 departure training will aid expatriates in successfully adjusting to
their new environment. Language, however, may also help
communication processes. Expatriates with greater language
abilities have more opportunity for inter-unit contact and may more
readily develop relationships and tactics with the headquarters
(Storozum & Linowes, 2013). For instance, if an expatriate host
country proficiency is high, he/she will no longer rely on interpreters
which may only assist expats in understanding fundamental
interaction with clients, but it will not necessarily assist them in
understanding the complexities of what their customers are
attempting to communicate (Dolainski, 1997).

4.1.3 The organization may profit from the additional soft skills the
expatriate acquires 148
A crucial role is played by parent company expatriates. They
are responsible for managing subsidiaries on behalf of the parent
business and assisting them with development and self-governance
(Linton, 2021). Therefore, companies that employ qualified
instructors to give sensitivity training to their expatriates during pre-
departure training will produce great management and professional
abilities, responsive to others, and possess the capacity to identify
and respond to problems in subsidiaries (Tung, 1981; Shih et al.,
2005). Moreover, after taking lessons in investigating difficulties,
evaluating problems, and finding answers, expatriates can acquire
the problem-solving skills of discernment and judgement. For
instance, providing pre-departure training with a variety of job
scenarios so that expatriate is fully equipped to understand and
master various circumstances such as customer behavior while
dealing with issues in the host nation (Lin et al., 2012). Before
moving abroad, all of these abilities may help expatriates become

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 more sensitive, capable of addressing problems, and competent in
cross-cultural communication.

4.2 Why some MNCs reluctant to provide such training 179

4.2.1 High training cost 55

- The cost of pre-departure training might be prohibitive for
multinational corporations. Travel, training facilities, internal
training development, and equipment expenses may add up
rapidly (Anna, 2021). The Association for Talent Development
(2017) reports that firms invest an average of $1,252 on training
and development programs for each employee, which causes a
cost burden for MNCs.

4.2.2 Fear of ineffective 61

- The concern of ineffective training is claimed by around 8% of
MNCs as a justification for not providing staff with pre-departure
training (Ahmed, 2018). The skill and career progression of
expatriates may not necessarily benefit from the training
programs supported by multinational corporations because the
majority of managers and professional staff regarded them to be
ineffective and of low quality (Zheng et al., 2007).

4.2.3 Possibilities of job hopping 63

- A polished and competent expatriate will be well prepared to
leave the MNC for another that provides competitive wages and
benefits (Reddy, 2019). There are many rivals on the market,
and they all want workers with comparable or more
sophisticated abilities (Lowell & Findlay, 2001). If the expatriate
gains extensive knowledge and experience in the country, they
may be able to transition to a higher position.

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4.3 Position/stand- should be conducted or should not be conducted 69
In my opinion, pre-departure training must be conducted by MNCs
because it is more stressful for expatriates to live and work overseas.
Working overseas necessitates adapting to the host nation. According to
several academic studies, foreign employees receive less professional help,
are less satisfied, and suffer from greater mental illness than their domestic
counterparts (Font et al. 2012; Aalto et al. 2014). Other than mental issues, it
also results in disengagement, turnover, and decreased productivity (Elnaga
& Imran, 2013).

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5.0 Recommendation 78

IHRM is complicated due to the disparities in social and business climates

between home and host countries where MNCs conduct their operations
(Wintersberger, 2017). Hence, the MNC must acknowledge the solution to prevent
every possible problem. In addition to the advantages listed above, pre-departure
training may be advantageous to the MNC itself. Particularly, during the training,
expatriates could provide fresh ideas in combination with the local culture and their
home culture to give MNCs additional options for expanding their operations
(Janssen, 2013).

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6.0 Conclusion 55

In a nutshell, this assignment has exposed every potential issue and crucial
information that an MNC should be aware of in a global setting. As a result, it
demonstrates how important it is for MNC to emphasize on every minor aspect when it
could examine the chances of an MNC succeeding in an international environment.

(2,009 Words)

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