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Cultural differences and expatriate difficulties

in international Human resource management

By
Rajeev Duraiarasan (Durai).
EXECUTIVE SUMMARY
Generally, The Aim of report has gained more significant and
attention in the global staffing method in international human resources. Firstly the
report examines the national cultural differences between USA and China that can
influence into recruitment and selection process. Secondly, discussed and referred
about ERPG model according to Perlmutter and Heenan’s that elements can assist
to organisational adaptation. Finally, in this report findings some difficulties of
expatriate facing external office or market and then how to select staffs and prepare
for assignment with reported clearly by clear recommendation and references.

TABLE OF CONTENTS

1.INTRODUCTION…………………………………………………………………………....3
2.NATIONAL CULTURAL DIFFERENCES BETWEEN USA AND CHINA……………4
2.1 NATIONAL CULTURAL IMPACT RECRUITMENT AND SELECTION………….5
3.ERPG MODEL ADOPTATION FOR ORGANISATION………………………………...6
4. DIFFICULTIES MIGHT EXPATRIATE STAFF ENCOUNTER………………………..7
4.1 SELECT AND PREPARE THEM FOR AN ASSIGNMENT……………………......8
5. CONCLUSION………………………………………………………………………………9
6. REFERENCES………………………………………………………………………………9
INTRODUCTION
According to case study Greenburger is familiar Chinese fast
food restaurant they have deliberate, meticulous planned in food cuisine style
because this restaurant emulate on western menu concept and they have adapt
trend of diet hound in natural spicy food with countryside farmed Asian groceries. But
they have strong knowledge and experience corporate orientated with leadership.
This restaurants have supreme achievement in parent country china, with good
reputation in internal nation branches Beijing, shanghai, Hong Kong. Chief executive
has determination to initiate subsidiary New York because of plenty of visitors to
china so need to facilitate the customers to experience of Chinese hotels in New
York. CEO wants alternative option and intention to open branch for Manhattan
customers prior for organic food. But this organisation decided that perform would be
similar way of performance in headquarter Beijing with the outcome same and in
term of protect their peculiar taste and individuality with ethical sales limitations.
However the Aim and Objectives of this report could be that advice and
recommendations for Greeburger organisations firstly, cultural differences between
the USA and china that impact recruitment and selection practice., secondly,
appropriate and adaptability HRM ERPG strategy for GreenBurger organisation.
finally, expatriate inevitable difficulties and select with preparation for foreign
assignment.

NATIONAL CULTURAL DIFFERENCES BETWEEN THE USA AND CHINA


National culture becomes a significant element when it comes to
formulating the IHRM recruitment and selection practices because generally in
national culture, as an organisation of vast profound values, behaviours and attitudes
of the people of community (Leung et al., 2005) to enormous scope decides the
features of other systems of the country. According to this case study, salient
national cultural differences between the USA and China that would be identify by
major culture compass Hofstede six dimension model these were labelled power
distance, individualism versus collectivism , Masculinity versus femininity,
uncertainty avoidance, long term orientation versus short term orientation ( Hofstede,
1991,2001). Latterly, Hofstede added another dimension that indulgence versus
restrained which individuals try to control their desires and impulses ( Hofstede,
2010).
Bar chart index source from Hofstede insights 2018.

Firstly, Individualistic cultures motivate to people communicate and express


themselves blatantly and collectivistic culture apprising people to control their
emotions and express them in a tenuous way (Yuan,2006). American national
culture efficacy and values individualism which primacy of individualism productivity,
autonomy, knowledge and accomplishment. In contrast Chinese culture has
precedence of collectivism which emphasizes polyphony behaviours, integrated into
firmly and gathering in groups with relationship triumph over task. Chinese way it is
the sticking out rafter that rots first (Beamer and Varner, 2009). Secondly, power
distance allude to unbiased and even handed power distribution among the people,
In china nation have highly in the power distance and contrarily USA has lower in the
power distance. Predominantly in high power distance that power focused at the
higher officials of relatively some people their determinations and instructions to
lower people, conversely in small power distance culture mostly power is rather
evenly distributed among the member of organisations (House et al.,2002).
Thirdly, Time orientation that imply of long term orientation versus
short time orientation dimension, In this dimension model Chinese have massively
adhered by Confucian concepts that possess a more in long term orientation that are
taught to be more tenacious and miserly always looks forward of the future rewards.
On the other hand, Americans have tremendous way of living in the short term
orientation their always interested in personal standards, protecting face, reverence
tradition and reciprocity of greetings and gifts ( Hofstede,1997). Fourthly indulgent
versus restrained dimensions Americans have scores highly in this dimensions
because of western societies mostly indulgence always frankly allow to chasing their
fundamental and natural things on humanity and their autonomy structure drives into
happiness. In contrast, low score Chinese have in this dimension as result of
oppress satisfaction and constraining the independence, According to Hofstede the
low percentage in indulgence indicates cynicism and pessimism ( The Hofstede
Centre). Finally, uncertainty avoidance and masculinity versus femininity this two
dimension model no such huge discrepancy between China and USA related to
Hofstede national cultural dimension index. However, uncertainty avoidance allude
to the extent which people feel convenient and congenial when they under the
circumstances of uncertainty. People are likely to express differently to
circumstances with innate ambiguity based on the tolerance for uncertainty ( Quintal,
Lee, and Soutar, 2009). In addition, masculinity versus femininity dimension refers to
the extent sharing of emotional parts between the genders. Commonly, the more
feminine characteristic of negligible on material achieve and more on contributing for
their own families on more masculine traits that hound advancement and earning
wealth rather than personal life.
NATIONAL CULTURAL IMPACT RECRUITMENT AND SELECTION
Recruitment and selection process have significant
role in organisation such as Greenburger, recruitment is sighted as vital aspects to
organisation prosperous and progressive. The profitability and survival of an
organisation mostly depends on competence and capability of its employees (
Wickramsinghe,2006). Usually, Selection is the one of the element in recruitment
process and major tool for developing and upgrading the corporate culture ( Schein,
1985) this process concerned with deeming and prudence monitored which
candidates or applicants to relevant to jobs and assessed about their behavioural
styles, beliefs and values. Definitely in the recruitment process critical element such
as system of values influence to the candidates to determine for which job
appropriate to apply. In case candidates endorse the individual values they would
prior to jobs and they will be express their personal quality and accomplishments
with availability of advancement. In contrast, if the candidates have collectivism
values, their always like to grant them work in a group and coordinate and cooperate
among them.
Subsequently, selection process major part of role in recruitment,
usually top performance organisations have tough competitive criteria with
competencies and technical oriented skill. On other side collectivism have soft
criteria selection approach with relational and social status. Generally low power
distance can influence the flexibility of culture, In USA empowerment has been
effective and sociable on the human resource practice that means American
employees feels their constraint and capability towards in their future. But, In China
have inconvenient empowerment because of supervisors behave tyrannical to
employees that affect and workers feel pessimistically and autocratic (Fock et al.,
2013). Their role, objectives, structures, and activities differ from Nation to Nation (
Hyman,1999) In the long term orientation high such imply societies prefer
prevention and but they are able to adapt new circumstances while in opposite short
term orientation needs to asserting present culture and oppose any replaces efforts.
Generally, (Allen, 2014) differences in emotional labour across cultures the
concentrated was on studying workers in the united states and china that bring the
indulgence difference in emotional and perceptions, such as emotional exhaustion
in work place. Business in transnational or bilateral environment that vibrant
situations, Hence Greenburger human resources department recruitment and
selection can balancing approach and need to concern in the appropriate decision
making, teamwork cooperation, leadership flexibility, beyond cultural adaption in the
different countries circumstance.
ERPG MODEL ADOPTATION FOR ORGANISATION
Greenburger restaurant have proved successful in domestic
market in china with flagship in branches, now CEO decided to initiate subsidiary in
Manhattan in New York. So restaurant moves into foreign market, Each entry to
overseas market need the application of sufficient strategy of internationalisation,
that considering globalisation condition ( Fletcher,2001). Greenburger according into
EPRG model, perhaps mentioned also EPG Model is used in the international
marketing, ( Perlmutter,1969) it was ethnocentric, polycentric, geocentric. Then later
extend another model that factor regiocentric (Perlmutter,1973). For this organisation
regiocentric orientation in appropriate because the compulsion of local adaptation
that mostly protectionist measures by host countries.
Ethnocentric orientation happen vitally its idea is to reach to foreign the
competitive advantage experiences gained on the local market. If Greenburger Firms
using ethnocentric strategy neither massive advantages from domestic market or
success some advantages from global strategy. Actually the foreign market is
regarded as a secondary thing, For instance negligible research activity is occurred
on the foreign market (Radomska,2010). So managers are recruit from parent
country nationality to subsidiary that could be hierarchy of entity with highly
centralized and instructions directly from headquarter in the home country. Definitely
the factors produce certain costs and compensation for working in another country
that would be added on the basic salary package. Even though manager have to
prove some positive effects on the host country and culture of superiority as entity
outcomes local customs are rather than imposed foreign markets. Perhaps in
subsidiary there no transparent and flexibility that might cause into increase the
expenditures and lower efficiency for companies with flow of know how is effective.
Generally ethnocentrically firms theirs unable to replace the strategy particularly for
foreign markets because their major market could be national and local market. In
the large scope of management, ethnocentric approaches last three decades have
slowly lost the support, if solely because they proved futile and catastrophe
(Hofstede, 2010).
The polycentric orientation it’s has generally individualized activities with
gaining from local activities and autonomy structure in the domestic market that
focus clearly on goals, strategies and marketing campaign are developed. In
polycentric have concept that local issues on cope with local rather than external
methods, supreme polycentric orientation is also inefficiency but it presume domestic
market is understood by domestic managers that flow of know how is helpless (
Perlmutter and heenan,1974). In polycentric model of company have various
countries managers with independence of actions in the work and headquarters
sociably allow to function the subsidiaries staffs. But, that might cause into
tremendous growth of disarray and dearth of cohesive between subsidiary and
entity. As a result, polycentric approach can depreciate the economy percentage,
For Instance In 1990 citicorp was polycentric organisation but it subsidiaries in
different countries implemented their own practices and policies however
subsidiaries did not help for complete group. Finally it was decided to transform to
geocentric orientation
The geocentric orientation means a combine of ethnocentric and polycentric, it is
globalisation that access varies and identities among the countries and looks for
create global strategy ( Keegan and Schlegemilch, 1999) That global strategy
completely liable to domestic market desires. In this orientation has strong and
determination manners that taking advantages from the economy of growth which
brings to development the quality of products and services by the competence of
global resource. In contrast, expensive human resource and personnel
management, potential training and communication activities and transportation
allowance. There is no such differences in the national between international
markets. Related to management level, managers must have experience and
knowledge in particular areas, Further in this orientation moves between
headquarters and subsidiaries must be anyhow coordinate and eradicate in any
partial based on nations differences. There is no job for eliminate barriers between
headquarters and subsidiaries, it always prefer for global standards and massive
challenge for internal standards in any geocentric orientation organisation.
Unexpected necessity for any that performs on the global largest market ( Barlett
and Beamish,2010). Some major factors in business that customer desires,
customer prior and labour relations these could be perfect execution which makes
elevate from issues and difficulties with brings presence of growth long term stable in
the market . In geocentric approach is enormous transnational corporations ,
organizing it’s the business platform of the global market (Wiktor et al., 2008).
DIFFICULTIES MIGHT EXPATRIATE STAFF ENCOUNTER
State of training and practice in the embryonic stage of
foreign market where companies are implement new business or developing
products in other nations that prior experience of considered essential. Expatriate
roles are also mainly highly based on the top official level by a manager ( Tseng and
Liao, 2009). Generally, expatriates when shift for job and live in abroad that would be
new cultural astonish atmosphere (Goby and Ahmed, 2002) expatriates facing in
overseas inevitable difficulties a cultural astonish, various things in work criteria,
language barriers, lack of accommodation facilities, isolation, system difference in
healthcare and education for children and cost of living issues. In lot of cases
expatriates challenges issues in office work and personal transformation related to
certain environment, perhaps non rectified that problems consequence in depression
for an staffs, that definitely have a negative effect on staffs professional career and
the high target of foreign assignment (Qin and Zhou,2009). Absolutely, expatriates
failure is more general but brings a great difficulties in internal business, because of
some of reasons that lack of confidence to work foreign , employees dissatisfaction
with compensation and incentive benefits and lack of technical accessibility,
furthermore obscure family orientated problems, puerile observation cultural
environments, dearth of tackling mentality. Commonly, employees way of performing
should be handling different manners similar to culture of environment. Failure of
expatriates assignment is according to early stage of repatriation ( Hemmasi and
Downes, 2010), incompetence completion task by expatriates resigning in entities
after repatriation ( Stedham and Nechit,1997). Perhaps Some issues are
encountered while an assignment abroad direct and indirect loss for entities that
potentially reasons their employees issues.

SELECT AND PREPARE THEM FOR AN ASSIGNMENT


Probably, company that spending in foreign market to
should manage, control, cooperate and coordinate performances great way in
foreign subsidiaries and headquarters (Qin and Zhou,2009). In terms of attain theirs
aims and objectives expatriates commonly selected for manage firms and corporate
representative and ambassadors for subsidiaries beyond of parent company. they
should manage with better techniques and great acquaintances with headquarters
and local staffs (Wu,2008) that develops transfer the technology advancement and
more aware in the market, exchange ideas of innovative between Parent company
and Subsidiaries. Most of the international assignment as an facilitate to employ for
professional and personal enhance that positive energy in the career, and
assessment for person fit for expatriates work. Pre departure training is deliberate to
be access to ensure the expatriates, efficient work and accomplish the company
mission and vision in the abroad, only be destination nation is considered culturally
hardness that preparation for expatriate assignment related to country based by
Language training and job orientated with cultural training and practices and other
most difficult stage is repatriation which means employees return their own country.
In state of implement the expatriate process management and employees must
need to pay adequate attention to all of these process. According to GreenBurger
initiate subsidiaries in Ney Work that generally need preparation for management
expatriates except one of the general managers that effectively works and brings
success for company.
CONCLUSION
Across the world familiar company try to extend business in other
country that enter into multinational market certainly their face cultural different
orientation having to deal by some HRM organisational culture such as job analysis ,
training, motivation that all for employees and business. In human activity without
cultural impact so organisation arranging staff for external market must select with
cultural adaptation, competence and experience and training relevant for based on
subsidiary country environment. Therefore this methods could be useful for
Greenburger restaurant aims and long term goal for achievement with extend more
subsidiaries.
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