Multinational corporations opt to send expatriates overseas to handle and represent their global ventures, aiming to efficiently carry out their strategies and goals. Skilled human resource management is crucial for successfully establishing and managing new branches. MNCs justify hiring expatriates instead of relying on local talent due to factors such as minimizing losses caused by inadequate management when setting up subsidiaries or joint ventures.
The lack of necessary skills and experience among local employees often poses a challenge for Multinational corporations when it comes to managing new ventures. Consequently, many companies resort to recruiting and dispatching expatriates to oversee their operations abroad. This strategy serves to mitigate instances of culture shock which have been known to result in the failure of many expatriates in foreign managerial positions. Culture shock is a significant barrier for US companies deploying expatriates, and th
...e level of this shock experienced by an individual is closely related to their perceived need for cultural adjustment. Therefore, cultural expertise is a crucial factor in selecting suitable overseas managers for Multinational corporations.
Human resource management faces the challenge of balancing local adaptation and internal consistency. By utilizing experienced and culturally aware managers, multinational corporations can achieve consistency between their foreign affiliates and headquarters. This can also result in the subsidiary operations conforming to the host affiliate's local practices and adhering to a global standard. The HR department is responsible for acquiring, developing and maintaining the capabilities of a company's workforce and organizational relationships. In China, the impact of cultural differences on business ventures is evident, and HR plays a crucial role in managing these challenges. China has made great strides in advancing its HR management
practices despite being vastly different from the United States, creating potential culture shock for expatriates working in this challenging environment.
The impact of culture on multinational corporations can have adverse effects on both management style and adaptive efficiency in new business environments. According to Adler (2005), navigating cultural differences in a Chinese environment as an expatriate can exacerbate the influence of national cultures on operations and work behaviors. An expatriate is someone appointed by a company from one country to manage operations in another country where the company has interests. Therefore, recruiting suitable expatriates is crucial for successful international operations.
The company demands extensive experience, knowledge, and management skills from the person they hire, leading to multiple considerations when hiring an expatriate. These include adapting to new cultures and dealing with homesickness when leaving one's home country. Additionally, recruiting an expatriate raises issues within international Human Resources, which has rapidly evolved over time.
The challenges faced by HRM today are a result of fast globalization and the emergence of cross-cultural dimensions. As companies continue to internationalize, they adopt new HRM strategies, policies, and practices, leading to HRM problems (Qi; Lange, 2005). Hiring an expatriate is a way of exporting human resources while importing foreign technical knowledge. Dispatching an expatriate to work in China provides an excellent opportunity for gaining knowledge of Chinese HR and work environment (Yurkiewicz; Rosen, 1995). Furthermore, international assignments equip managers with valuable experiences that can be useful for the company in the future (Scullion, 2001).
The integral requirement for an expatriate in China is due to limited experienced and skilled employees. The purpose of this expatriate is to bridge the gap that exists
as the company sets up a subsidiary in China. It is crucial for expatriates to conduct business on behalf of the company, thereby averting any potential corporate issues resulting in failure. This was outlined by Ronen (1986). Three hiring approaches for expatriates include ethnocentric, polycentric and geocentric approaches.
Wild et al. (2000) state that multinational corporations (MNCs) will adopt a geocentric approach to aid expatriates by selecting the most competent employees to head their Chinese subsidiaries, regardless of nationality. The main objective of hiring an expatriate is to assist in managing the subsidiary in China, enabling company management to enhance control and coordination over their subsidiaries with the presence of an expatriate.
Previously discussed in this paper is the significant difference in corporate culture between China and America, including attitudes and behaviors. It is the responsibility of an expatriate to manage cultural differences and attitude problems among local employees, which can be costly for a company. The expatriate must also ensure regulatory standards are met, respond to issues, share goals with the parent company, interpret policies and organizational culture. According to Black et al. (1992), headquarters use expatriates in key positions worldwide for oversight and control of the company. However, failure of an expatriate can have serious consequences for a company.
According to Dowling, Schuler and Welch (1994), there are three main reasons for expatriate failure: the manager and/or spouse being unable to adjust and family issues. This results in tangible costs such as the expatriate's salary, Foreign Service premium, allowances and benefits. These costs can be calculated. However, indirect costs can also arise, which can have an impact on market shares and damage relationships with customers,
partners, suppliers and local government. The cultural and structural differences of the new business environment can also present challenges for overseas managers. It is important for expatriates to quickly adapt to the culture shock they experience in order to ensure a successful transition.
Exposure to a new, foreign and unfamiliar environment and society can compromise one's capacity, resulting in fear, loneliness and discouragement. This feeling of being lost, confused and anxious due to unfamiliar situations and different cultural norms and values is defined as "culture shock" by Qi and Lange (Neuliep, 2003). When individuals move to a new country and encounter a new culture, they bring along their values, beliefs and behaviors based on their own culture.
Experiencing culture shock can occur when encountering a new culture that clashes with one's home culture, resulting in psychological and social implications such as feeling homesick, confounded, depressed, irritable, stressed and furious (Wild et al., 2000). When selecting and recruiting an overseas manager for a multinational corporation, extensive job analysis is necessary to determine the employee's required level of skills/technical abilities, competencies, and flexibility. The following attributes reflect a competent expatriate and are necessary for the most suitable candidate for the position.
The sources describe various aspects that contribute to a person's job performance, including technical competence, job factors, relational dimensions, personal characteristics, environmental variables, family situation, motivational state, and language skills. Adler (2002) discusses these components in the context of international organizational behavior. The information is presented within a HTML paragraph tag.
J., Gregersen, H.B., and Mendenhall, M. are listed.
Global Assignment by E. (1992) published by Jossey-Bass Publishers in San Francisco is a work that includes the author Dowling, P.
J.,
Schuler, R. S.; and Welch, D.
Neuliep, J. (1994). International Dimensions of Human Resource Management (2nd ed.). USA: Wadsworth Publishing.
According to the Houghton Mifflin publication from 2003 titled "Intercultural Communication: A Contextual Approach" by W. (2nd ed.), the subject matter explores intercultural communication within the USA.
The Journal of International Business Studies in 1994 was authored by Philip M. Rosenzweig and Nitin Nohria, while S. Ronen wrote the 4th edition of Comparative and Multinational Management in 1986. The data is enclosed within paragraph tags in HTML format.The book "JohnWiley ; Sons, Inc. New York" was authored by Rosen, B. and Yurkiewicz, J. in 1995.The HTML-tagged text indicates the presence of a chapter named "Increasing Receptivity to Expatriate Assignment" in a publication titled "Expatriate Management: New Ideas for International Business," which was edited by J. Selmer and authored by Scullion. Quorum Books published this book in Westport, USA.The book chapter titled "International Human Resource Management" by H (2001) can be found in J. Storey's edited textbook, "Human Resource Management: A Critical Text" (London: Thomson Learning, pp. 288-313).
Wild, J. J. and Wild, K. L.
The author's name is Han, J. C. Y. and the year of publication is 2000.The Manufacturing Performance Institute's report, "Super human resources in china: practices, performances, and opportunities among China's manufacturers," authored by Richard S.W., John R.B., George T., and Ronnie Tan Li Tong in 2007, is recommended alongside Qi and Lange's 2005 work, "Preventing Expatriate Failure," and the book "International Business: an Integrated Approach" from Prentice-Hall in New Jersey. All of these works fall under the category of international business.
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