Issues of Expatriate in Multinational Human Resource Management

Essay by jackson2090 April 2007

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Issues of Expatriate in Multinational Human Resource Management

In 21st century, the rapid growth of technology caused economic society and lives are changing significantly (Budhwar & Debrsh 2002). Within these changes and uncertain business environments, how to capture their competitive advantage has become the most important issue for organisations (Tye & Chen 2005). There is a common recognition that to operate on a global level is essential to maintain a competitive advantage for many organizations (Tye & Chen 2005). Under this situation, how to manage human resources on a global scale becomes a greatest challenge with business has becoming increasingly international (Liu 2006). To be successfully implemented, global business strategic requires international human resource systems and international competent people (Liu 2006).

The purpose of this paper is to identify the differences between international and domestic approaches to the management of human resources and through four myths to explores issues and challenges when selection of expatriates for international assignment.

It will conclude by arguing that which is more important element between host country and home country when selecting expatriates.

The first section of this paper is to identify definition of expatriate. Ismail, Ahmad and Ismail (n.d.) defined that an expatriate is an employee who is sent by a multinational parent company on a work assignment to a foreign nation. For example an employee who works in a multination company where located in Southport in Australia, because company want to extend global business he or she is sent to china where there are sub-company for perform the company's international operations. This employee is called expatriate. As the most expensive staffing strategy for the multinational corporation, expatriation remains a viable method for increasing the corporation's understanding of international operations. While organizations may notice expatriation as an attractive method for accumulating foreign markets, they...