Organisations are always interested in ways that they can expand their business. One way that is popular for large organisation to is going into foreign markets. Globalisation increases the amount a good and services moved between each country which increases their revenue (Stone, Managing Human Resources, 2013). With global growth in an organisation, it creates jobs in overseas countries. When recruiting an expatriate, it comes with many challenges for both the Human Resource manager but also the employee. Expatriate are eager to get an overseas assignment as they will develop personal skills as well as skills from work in overseas and dealing with people for a different culture. For a Human Resource manager’s perspective, they must develop policies and systems to help the expatriate adjust to the new culture.
Research suggests that the most items that make for success in expatriate assignment is human relation skills. (Stone, Expatrate Selection and Orientation, 1986). Not only is managing employee globally a strategical issue, it is also finically challenging. With Bártolo-Ribeiro and Andrade suggesting the average expatiate cost companies between 300,000 and 1 million USD a year and Hayes saying the 30 percent of Americans that are assigned oversea are mistakes, this clarifies that the right measure need to be taken to ensure the right selection is made (Hayes, 1974) (Bartolo-Ribeiro & Andrade, 2015).
The three key factors that Human Resource managers must consider in the selection process is the environmental, which looks at the cultural adjustments, the task is looking that the technical capabilities, a the work life adjusts, and the individual which is the way the consider the environment that the expatriate is going in (Hayes, 1974) .Finding the right techniques and testing methods to selecting an expatriate can help both the Human Resource manager and the employees adjustment in to the assignment run smoothly without any major issues. Selecting the right employee to become an expatriate for your organisation is a vital part of success of the assignment. When looking at employing an expatriate for an overseas assignment, the Human Resource manager doesn’t only have to look at the work place skills, but also the adaptability of the person. Typically, standard interviews, personality testing and medical screening will be taken like any other pre-employment process.
An important aspect to look at in a potential expatriate is their personality traits. Harvey and Moeller suggest that a successful expatriate shows empathy, respect, interest in the potential local cultural, flexibility, tolerance, technical skills, are initiative, open-minded, sociable and have a positive self-image (Harvey & Moeller, 2009). Although these some suggested traits that an expatriate should show the willingness and knowing the adjustments that will have to be made is also a focus. Another test that can be carried out is related to culture differences which was designed be Hofstede in 1980. This is important to look at as it compares the culture differences between the host country and the perspective employee.
The test looks at four key aspects, with the first two parts look at the power distance of the culture. A culture will either have High or Low power distance. A High-Power distance shows that there are inequalities in power and wealth between people and has grown into society. Whereas Low-powered distance will show that there are equalities between people in society. The next focus is on Individualism and Collectivism.
Here, Human Resource manager will test for interpersonal relationships and whether the culture focus on individualism or collectivism. This is an important factor to consider as it can desirer whether an expatriate will fit into the culture based on pervious and current working environment. The final aspect that is looking at is whether the culture is Masculine or Feminie. A masculine environment in about the emotional effects of the work role model of achievement, power and control. A feminie work role model is based of modesty, life quality and caring. Once all these elements are scored from the host country and the expatriate test scores, it all show whether the employee is suited to work in the proposed country. The smaller the difference between the scores the more likely an expatriate will fit in and adjust to the culture. (Bartolo-Ribeiro & Andrade, 2015).
Hofstede’s selection method has been proven success and is a useful method for Human Resource managers. Using a testing method, is more successful that assigning an expatriate to a host country be out any cultural adjustment being assessed. It could become financially challenging for the organisation if the expatriate does not fit into the cultural environment. An important factor to look at when selecting an expatriate is to look at their cultural characteristics. The specific culture that the expatriate is being assigned to be have a variety of the cultural environment factors that they will have to adjust to.
Not only is the culture of the foreign country important to look out but it is also essential to look at the culture of the company. Culture varies between all organisations because of the variety of different policies, staff and cultural differences. Understand cross-culture communication is highly important with it coming to business. When communicating with other from another culture, it is important to have knowledge in the variations in the meaning of words and body language. This occurs as China and Japan us high-context cultures, where the real meaning on the conversation is based on the body language, that has been used. Typically, organisations based in New Zealand, Australia and the USA, have low context cultures (Stone, Managing Human Resources, 2013).
This means when organisations have conversations that what is said, is what it means. For a Human Resource manager, this makes the selection process challenging as is the expatriate is assigned in China, then misunderstanding or using the incorrect body language meaning can contradict organisational relationships. The Equal Employment Opportunity (EEO) Policy, is an agreement the talks about employment selections that do not discrimination against the potential employee. With selecting an expatriate for an overseas assignment, a Human Resource manager must be aware with the differences in the EEO between countries. In severely oversea countries that Although it is high important to consider cultural adjustment elements of the jobs, the main consideration is to look out the technical factors of the job. Harvey and Novicevic said that a Human Resource manager should have a fully integrated selection process where you need to include previous work experience to see if they can technically fit the assignment as well as being to cultural adapt (Harvey & Novicevic, Selecting expatriates for increasingly complex global assignments , 2001). Not only does an expatriate need to adjust the culture environment, they must to adjust to the culture and work flow of the assigned organisation. When interviewing and selecting a potentially expatriate for an assignment looking at their past job, company and industry experience is a highly important factor to look at.
Stone said ‘Person- organisations fit is positively related to organisational commitment and intention to stay’ (Stone, Managing Human Resources, 2013). Having a expatriate with the incorrect skills can cause a negiative culture within an organisation, as other employees my become passive- aggressive during to lack of known which creates a toxic work environment. If a expatriate has had pervious experience work to in the specific industry then they are going to find it easy to apdat to the new work place environment. We can see that looking at an expatriate’s personality traits can help a Human Resource manager understand the person’s value, interests and ways of working. This is extremely helpful because their a see if the expatriate is willing and able to fit into the proposed assignment. Hofstede’s cultural testing method is also a key to seeing if the employee will fit into the host countries culture. This shows the Human Resource manager whether the expatriate will cultural adjust, if not then the wrong selection could become financial challenging. Knowing that an expatriate will be able to the adjust to the culture is important to know, but they also must be able to understand cross-cultural language.
This can affect the organisational relationships as I miscommunication could result in a loss of business. The expatriate must be aware that during the selection process, the Equal Employee Opportunity Policy will have to be assessed, as difference in the policy in the host country could result in a different working environment and expectation in the proposed country. Once a Human Resource manager has been through the selection process to find the correct expatriate for the assignment they would have made an informed choice. This will in lower risk of costing an organisation financially, and knowing that they are technically and cultural capability to make adjustment to the host country.