Essay On Expatriation

3086 Words7 Pages

1. Introduction
Under the increasing globalization, organizations have to deal with new challenges in order to maintain sustainable competitive and become accustomed to the changing global market. The developing globalization has promoted companies establish their organizations across different countries and expanded new business in multicultural environment. Culture seems to be a key factor of the relationship, interaction and communication between people from different countries when companies become multinational. Expatriation is regarded as an important part of international human resource management (IHRM) in multinational companies (MNCs). A range of research has showed that expatriation is an essential area of international business (IB). Well-adjusted expatriates have both low leave possibilities and high effectiveness (Bhaskar-Shrinivas et al., 2005; Black, Mendenhall & Oddou, 1985; Hechanova et al., 2003).

Although expatriation seems to be the most expensive personnel strategy for MNCs, it is still a feasible way for increasing the organizations’ development of international companies. Moreover, expatriation is a method for the enterprises to improve global competencies which are integrated with the organizations’ overall strategic human resource management plan. Expatriates could obtain knowledge and skills which are valuable for their home country company during their aboard period (Lee, 2005). Furthermore, expatriates usually transfer knowledge, skills and organizational culture across countries (Graf, 2004). Malinowski, Paik and Segaud (2002) argued that the most efficient and effective way to transfer the critical capabilities of the company is through expatriation, which is one of the determinants of MNCs success...

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...nd adequate support for expatriates and their families. The cultural training in China could include relationship forming, the attention on hierarchy and power, face and trust, negotiating and bargaining. Expatriates should also highlight infrastructural issues such as the different knowledge, skill level and education background of employees, limited transport and inflexibility of the Communist bureaucracy.

In turn, with rapid growth in the Chinese labor market, organizations need to realize the challenges of managing the diversity and globalization of workforce. Because of the fiercely competitive situation of the investment management industry, compensation approaches for expatriates and locals are not mature enough. Thus, the role of human resources is becoming increasingly significant as the global management issues in the labor market should not be neglected.

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