HRM for International Expansion

HRM in Global Environment Based on the readings there are a couple of things that a company can do in order to prepare its workers for an overseas assignment (Text, Chapter 15). The first is to give them some basic training on some of the issues that they may deal with. These include some basic language training, knowledge of some of the more important cultural differences and the local business culture.

The objective is not to make the person an expert, but to give them enough background that they will know what it is they do not know. A person going overseas to an unfamiliar country and culture mostly needs to know when they need a local expert and when they can handle something themselves. Having that background knowledge about their role and the local culture will provide that starting point. The second issue with respect to preparation is a little bit different.

Numerous studies have been conducted on this subject over the years and the familial adjustment is a critical success factor in overseas assignments. Black and Stephens (1989) note the relationship between spousal adjustment and the worker's intention to remain with the overseas assignment. This means that it is very important for the company to prepare not only for the work part of the assignment, but the living part of it.

The company needs to ensure adequate housing, transportation, education for the children and potentially find ways to help the spouse adjust as well. By doing this, the company will increase the likelihood of the worker remaining for the duration of the assignment. Suppose you want to send someone overseas to Malaysia. There could be some significant problems that arise, in particular given the nature of the HR department. Two of them think that there is a language called "Indian," which is rather alarming.

They must fancy themselves a C3PO-level interpreters who can throw around everything from Bengali to Tamil to Punjabi without missing a beat. There are three people who have never traveled, and while Malaysia is not exactly the Congo, there is a learning curve. People who've never even been to Cancun are probably not going to handle this assignment well. Legitimately, the HR department as presently constructed is in over its head trying to organize sending someone on assignment to Vancouver or Sydney, let alone somewhere in Asia.

With the first move towards an international business model, the company is going to want a lot of host country expertise to ensure that fundamental mistakes are not made. Some mistakes do not matter -- nobody cares if you leave a tip on the table -- but people with no experience working overseas are at a high risk of catastrophic error. What needs to be done is this.

The company needs to hire a consultant, somebody with experience in navigating the specific issues that expats face in this country, because there are a lot of issues at play. The current HR team means well, and they can use this as an opportunity to learn from a pro-so that they can handle this job next time. But for now, a pro-will be required. First, they need to identify the key success factors, not just for the position but for living overseas.

The significant other is a potential issue, as noted above. Children are highly adaptable, but international schools are expensive, so finding someone who is single will cut costs down significantly. English in the language of business in Malaysia, but basic language training on Malay will come in handy. If the person likes to eat, they will fit in better, as eating is the main social activity for Malaysians of all ethnicity.

Employees who are transferred to work with have to be prepped for local laws -- they can be quite different. There are hiring laws that promote Malays over other groups, for example. Non-Muslims are not normally subject to Islamic laws, but expats should.