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Expatriate Management In Human Resource Management

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The purpose of this paper is to provide a comprehensive analysis on a case study related to a Swedish-based company’s Human Resource Manager, entrusted to craft up strategies to minimize failure rate of expatriation. This case study is specific towards the company’s direction to expand to China by setting up operations in the country. This analysis outlines challenges and strategies in the human resource management, focusing on expatriate management cycle, process of candidates’ recruitment, training and learning development, managing expatriates family in the host country and acclimatising in the host country’s culture. This analysis is critical as it affects the company’s nature of business, its revenue and profits, and its business models …show more content…
Companies which have executed cross border expansions, have their preferred methods in managing their social capital, locally and internationally. Expatriates from parent company nationals (PCN), is one of the preferred method by companies as knowledge transferors in the management and operations of international subsidiaries and this method reflects the dynamic changes in the internal organisational development (Black and Gregersen, 1999, Romero, 2002, Templer, Tay and Chandrasekar, …show more content…
According to O’Sullivan, Appelbaum and Abikhzer (2001) and Black and Gregersen (1999), 10-20% of United States (US) expatriates returned prematurely due to job dissatisfaction or difficulties in adjusting to the host countries’ environment. This will have a huge impact to the parent company, which relates to direct and indirect costs. Direct costs will encompass expenses on transfer of location, training, remuneration and benefits (Mendenhall and Oddou, 1985). Whereas indirect costs will include loss of market share, relationship with host countries’ officials and low expatriate confidence (Zeira and Banai, 1984). In addition to the costs and negative outcomes which constitutes from the premature returned, expatriates will have to endure discouragement, loss of respect and credibility among peers, which may adversely affect their future performance (Mendenhall and Oddou,

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