Foundation of International Business
Foundation of International Business
Introduction.......................................................................................................................................................................... 3
Literature review................................................................................................................................................................... 4
Selected Case study...........................................................................................................................................................4
Stages of Expatriation........................................................................................................................................................4
Pre-departure........................................................................................................................................................4
Initial Experience...................................................................................................................................................5
Gestation...............................................................................................................................................................5
Outcomes & Adjustments.....................................................................................................................................5
Application of EAP model to Case 8.3...................................................................................................................................5
Strategical solutions with conclusive remarks.......................................................................................................................7
Overall Reflection..................................................................................................................................................................8
Conclusion............................................................................................................................................................................. 9
Reference List...................................................................................................................................................................... 10
Appendix............................................................................................................................................................................. 12
Introduction
Globalization of the world has changed the way in which 21st century individuals and business industrialists
perceive global trade. Globalization has made changes of how organizations interact and work with increasing
competition from all sides. This has led to new workings, rising to newer terminologies such as Expatriates and
International human resource management (IHRM) respectively (Admin n.d.)
I would like to mention a quote, before explaining the distinct key concepts and factors of this assignment.
“To win in the marketplace, you must win in the workplace”- Doug Conant (David Grossman 2019). This
simply explains, a successful organization requires a successful workplace reflecting the importance of
employees working in a given organization.
Earlier, I have mentioned how globalization has become the new norm of 21 st century. In relevance,
Businesses now hire international employees from different parts of the world leading to expatriation. It is to,
employ the best of employees of a given position (or) task respectively. An expatriate is a foreign employee
who is a trained/experienced worker of a given profession. The employee accepts the job, either
independently or as a work assignment scheduled by the employer, outside his/her home country (Kagan
2020). It places oneself in a completely new environment, which introduces a range of possible problems,
ranging from cultural disputes, language hurdles, religion and various distinct factors. In relevance to
international business, hiring and involving expatriate managers offers a business organization the opportunity
to enter markets all over the globe. Innovation, new talents, innovations and societies are some of the
positives seen.
Expatriation results, great investments to organizations. It is so since; organizations can employ the best of
professional workers for a given task. Their years of professionalism and success in their home country, can
help business on parts where they are lacking behind in host country. Here, the expatriate employees are
considered as a key at a little more expense. But variety of reasons occur upon residing/engaging with
expatriates. These problems might significantly influence the transition of expatriate workers to the new world
that can influence their corporate ethics, success and dedication. The list of challengers is many, where some
of the well-known challenges are culture shocks and language barriers. It's impossible to expect expatriates, if
at all, to acclimate exponentially (immediately). It's no small feat to travel across the world and have to adapt
to a new community, job climate, and social framework with no immediate support. On the contrary end,
language hurdles effect drastically making processes and business relations relatively slow. It effects to an
extent, where the managers despite having years of experience, will not be able to communicate with
effective authorization resulting in cons and losses overall (GoAbroad 2019).
In addition, knowing the biggest challenges of handling expatriates would help a business to plan
appropriately, and this planning may balance the differences of a heavy failed investment (or) the success of
that investment respectively. This critical assignment explains, the case study of an expatriate managers
experiences (Case 8.3). (I personally would request the readers of this assignment to head towards the
appendix page, showcasing the complete case study before proceeding over). The assignment is applied with
a business model called as EAP (or) Expatriates Acculturation Process model respectively. To solve these
issues, arises the importance of IHRM (International Human Resource Management). IHRM is related to HRM
and its importance. The collection of activities involved in recruiting, managing results, compensation, training
and employee relationships on international basis can be described as IHRM. With the presented case, I shall
be integrating solutional options which helps overcome the situation. Let us now see the selected case
respectively.
Literature review
Stages of Expatriation
To relatively understand the selected case study, let us understand the factors of EAP model. The EAP model
consists of 4 processes namely Pre-departure preparation, Initial experience, gestation and outcomes
/adjustments (Wang 1999). Let us now see in-depth
Pre-departure
The first step of the EAP-model is being imminent before departure in which the level of anticipation,
enthusiasm, adventure and uncertainties of the person are decided by push and pull factors of their countries
of origin and targeted hosts. It includes concepts such as personal, family, organizational, home which result
the environmental factors seen in host country. While push factors are negative aspects, they are positive
factors to which, people view it differently. The strength of individual’s experience at this point may affect the
initial experience, when the person first arrives in the respective host country. (Mendenhall, Oddou et al 1985)
(Admin n.d.) (Selvarajah 2000).
Initial Experience
The first interaction, which takes place upon an individual's arrival in the destination country, is the second
stage of the process EAP-model. It usually averages less than six months but varies to distinct individuals. The
initial encounter of the expatriate with the host country comprises the feeling of food, housing, host culture
etc. This experience is expressed in the personal experiences of the individual, which includes pre-departure
and personality respectively. (Mendenhall, Oddou et al 1985) (Admin n.d.) (Selvarajah 2000).
Gestation
The third stage of the process EAP-model is the gestation period, which is referred as culture shock in which
people encounter, the realities seen host country quite intensively. The experiences are part of a both positive
and negative experience that vary, which depends over the cultural context of the individual and previous
experiences. Bad experiences can result in dissatisfaction while positive experiences can generate happiness
which can decide the reaction and experience transition to the host country of the given individual.
(Mendenhall, Oddou et al 1985) (Admin n.d.) (Selvarajah 2000).
Inference- Pre-departure process can be seen. Simon’s success has led to an opportunity of better pay and life
to which he and his family are quite excited. Simon compares his current life (in Bombay) and compares to that
of Malaysia where distinct benefits and success to him, and his family can be seen vision. He and his family are
quite excited.
The couple and the twins moved to a spacious apartment, where other expatriate families lived nearby in
Malaysia. The twins both enrolled at an international school where they excelled. Alice was more accessible to
the other expatriates and who were welcoming and polite. Alice often enjoyed cocktail parties hosted by
friends and neighbors highly. Simon's household had bestowed further financial success. A talented maid
named Habibah was provided for the family. She was an articulate individual who was multitasking. Her skills
contributed to hire a driver called Mohammed. He helped contribute highly to Simon and helping the twins
drive to school. They visited New Zealand more. (Selvarajah 2000).
Inference- Initial experience can be seen wherein, a momentum of positivity enriching the lives of every
member can be seen. Easier way of living with helping hands (namely Habibah and Mohammed) made the
family approach Malaysian culture much better. It has helped in overlapping expatriates-based negativity,
reflecting a successful expatriation.
But, within 2 months of time, The Malaysian government passed a law in reducing more foreign employees
and increasing locals. This regulation made it difficult and transfer majority of other expatriates and recruiting
more local individuals. The company decided to post Jane Devine as one of its project managers during this
period. Regrettably, for Jane, being posted to Kuala Lumpur caused herself and her local colleagues more
misery than advantage. Her apparel styling garnered concerns and attention of the other employees as it did
not respect the Asian counterparts. A meeting between Simon and Jane took place regarding the apparel
concerns, to which she felt dejected as her rights were being misused. Alongside, the organizations tradition
Friday evenings consisting drinks for the staffs, made majority of the Muslim employees feeling discriminated
on Islamic sentiments. With 13 years of experience in India, Simon thought that he didn't know much about
the people of Asia (or) Asian culture. His years of managing in India (which is direct orders, rising tone with
authorization) (Aggressive managerial style) was well criticized by the Malaysians. (Selvarajah 2000).
Inference- The gestation period can be seen where Simon can see the vivid encounters of culture shock. The
different culture shocks and newer issues of managing causes Simon immense stress and pressure. His years of
Management in India is seemed to be failing highly as it doesn’t match the Malaysian working methodology.
Further Mohammed was on the verge to quit his job, as Simon had been shouting at him at a patronizing man.
He was a dignified individual who was offended. Alice thought about losing a trust-worthy employee and
thought to talk about it. Simon’s meet with Jane to change her apparel methods did not have the required
effect. It further aggravated the Malaysian employees. Situations worsened wherein, cultural blame started to
happen and the communication gap between individuals grew leading to lesser productivity. A vibe of West vs
East culture could be seen presented. Simon felt it hard to adapt to Malaysian work ethics and 13 years of
Indian experience couldn’t be applicable. There was a growing distance between the couple, upon
Mohammed’s encounter with Simon, as mistrust could happen which made Alice feel, unsafe of leaving her
children with Mohammed. Simon's success in India has however begun to become a distant memory, with an
increasingly hostile working atmosphere and an increasingly fractious home environment. (Selvarajah 2000).
Inference- Outcomes & Adjustments can be seen reflected. Growing insecurities and negative environment has
made Simon and his family face distinct of issues. His years of experience do not work in Malaysia culture. A
dilemma is seen presented, to which Simon and his family must make quick decisions to solve the crisis. The
preceding paragraph will explain his possible solutions.
In terms of organizational methods, there isn’t a specific solution, but rather distinct options and changes can
be implemented (Osman, Rockstuhl et al 2008). Organizational support which comes from IHRM includes all
activities and policies considered by the expatriates to be representative of the importance of the
organizations such as its consideration for well-being, its priorities/principles, its equal treatment, its
resolution of their problems (Laken 2016). Some of the support Simon can receive is
A mentor system (which is generally unofficial) which is quite valuable wherein, Simon can find proper
adherence and compliance should be assured. It can be a colleague, friend, supervisors, mentors etc.
and should be formalized.
The issues amongst the couple is regards to potential adjustment concerns should be highly reflected
by the organization. It should just not recognize the employee alone, rather every member associated
with him/her.
Financial counselling/planning activities, alongside extensive environmental briefings are a must. The
rate of pay should be aligned with the new posting's additional financial demands (i.e. Salary must be
in accordance to required finance)
Previous employee experience, of the given position must be shared/discussed on explaining the roles
and authorizations for Simon
Ensure motivational compensations to Simon must be encouraged, for him and his family to feel
valued. It can include incentive benefits, travel allowances, relocation allowance, living adjustments
etc.
To develop a cross-cultural communication skill where, communication regards the relationship between
organizations and the expatriate individual (Simon) extensively. (Bhagyashree n.d.)
Personal Reflection
This section explains personal reflection over expatriate adaptation holistically. According to me, I believe both
organizations and expatriates are equally responsible for an effective and successful expatriation.
From an organization’s perspective, they must ensure whether the behavioral characteristics of possible
expatriate, can be adapted to the newer host country. Significant working experiences and flexibleness to
situations are some the key indicators to be recognized, to dictate characteristics.
On the contrary end, an expatriate must ensure thorough understanding of the situations, he/she may face.
They must recognize the possible threats, and opportunities to better handle situations, during pre-departure.
Lastly, without the intention of better pay, compulsion of organizations, and willingness of the individual must
be considered, upon the interest of expatriation. It helps build the foundations of a successful expatriation
respectively.
Conclusion
To conclude, Simon must look forward the organizational help when required. He must slowly adapt to the
culture and working methods of Malaysia to develop a connection amongst employees. He should raise
concerns to the superior when cultural divides and such topics are presented. He must indulge possible
strategies to overcome home and organizational issues. Though not encouraged, if Simon still persists with the
array of issues, it is best of him to relocate back to India and try his level best not to incur additional
organizational charges respectively.
Reference List
Admin, n.d., “Cross Cultural Adjustments during Pre-departure”, Learning abroad center, viewed at September
22nd 2020, <https://umabroad.umn.edu/parents/resources/cross-cultural-adjustments/pre-departure>.
Admin, n.d., “Globalization & HRM”, Spirit of HR, viewed at September 17th 2020,
<https://spiritofhr.wordpress.com/globalisation-hrm/>.
Bhagyashree, S., n.d., “What is International human resource management”, Economics Discussion, viewed at
September 24th 2020, <https://www.economicsdiscussion.net/human-resource-management/what-is-
international-human-resource-management/31956>.
GoAbroad, 2019, “3 Major challenges of Managing Expatriates”, Abroad Expats, viewed at September 18th
2020, <https://blog.goabroad.com/challenges-of-managing-expatriates/>.
Grossman, D., 2019, “10 inspiring quotes from successful CEO’s to help you win at Employee engagement”,
Grossman Group, viewed at September 15th 2020, < https://www.yourthoughtpartner.com/blog/10-inspiring-
quotes-from-successful-ceos-to-help-you-win-at-employee-engagement>.
Medenhall, M. and Oddou, G., 1995, “The dimensions of Expatriate Acculturation: A review”, The self-oriented
dimension”, Vol 10 No 1, pp 40-41
Osman, A.M. & Rockstuhl, T., 2008, “Antecedents and consequences of social network characteristics for
expatriate adjustment and performance in overseas assignments: implications for HRD”, Human Resource
Development Review, Vol 7 No 1, pp 32–57.
Wang, Z., 1999, “Immigration Acculturation Process: A Study of Adaptation Experiences of elderly dependent
Chinese Immigrants in Auckland”, Massey, viewed at September 20th 2020,
<https://mro.massey.ac.nz/bitstream/handle/10179/6416/01_front.pdf?sequence=1&isAllowed=y>.
Appendix
The below pictorial representation is the complete case study obtained from Chapter 8 (International Human
Resource Management) (Pages 42-46) (Selvarajah 2000)
(Selvarajah 2000)
(Selvarajah 2000)
(Selvarajah 2000)
(Selvarajah 2000)
(Selvarajah 2000)