The Expatriate IHRM

Reasons for International IHRM

 Position filling
Skills gap, launch of new endeavor, technology Transfer

 Management development
Training and development purposes, assisting in developing common corporate values

 Organizational development
Need for control, transfer of knowledge, competence, procedures and practices

It is a big challenge for an international organization to effectively manage its expatriate

workforce.

Reasons of Failure of International IHRM

The ratio of the failure of the IHRM of the expatriate workforce is estimated to lie in between
20% to 40%. Following are the six factors that are responsible for such failures.
 Career Blockage
 Culture Shock
 Lack of Cross Cultural, Pre-departure Training
 Overemphasis on Technical Qualifications
 Getting Rid of Bothering Employee
 Family Problems
Difficulties on Return
There are some additional issues that are faced by the expatriates on arrival at the home. These
problems are as follows.
 Lack of Respect for Obtained Skills
 Loss of Status
 Improper Planning for Return Position
 Reverse Culture Shock

Effective Management of Expatriate IHRM

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The global Human Resource Management should develop and implement those policies &
procedure that cover the fundamental issues of the expatriate IHRM. These effective HR
policies must be related to the selection, training, career development & compensation.
 Selection
The selection of a suitable employee for the expatriate assignment is a sensitive decision. The
management should select the best employee for the international assignment. Following are
the guidelines for the management in this regard.
 The cultural sensitivity should be emphasized as a criterion of selection
 A selection board should be established for expatriates.
 The previous international experience is required.
 The foreign-born employees are focused to hire.
 The spouses and families of the candidates are screened out.

 Training
People belong to different cultures & countries respond differently to the same symbols,
images and slogans. So the cross cultural training is provided to the selected candidates that
should cover the local customs, culture, tax laws, language & government.
 Career Development
The career development opportunities offered by the management of the organization also
serve as a basis for the motivation of the expatriate employee to perform well on his given
assignment.

 Compensation
The effectiveness of the expatriate employees is enhanced through attracting compensation
packages by the management of the organization. However, in certain cases, these special
compensation packages for expatriate employees create conflict in the local employees of the
organization. When local employees compare their compensation packages with the packages
of expatriate employees, the local employees consider this policy of the management as unfair
& hence conflict is generated in the organization.

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