Module Name : Human Resource Management Module Code : MGM 309 Module Tutor : Md.

Sajjad Hosain Week : 16 Lecture No. : 14 Lecture Topic : Globalization and Career Management --------------------------------------------------------------------------------------------------------------------

Globalization
Globalization is the tendency of the firms going more and more outside national boundaries. Basically, the companies going global because of three main reasons1. To search for new market for the products and services. 2. To utilize the cheap labour force and natural resources of the other countries, and 3. To get the foreign expertise of new technology. The typical example of firms going global is Pepsi, Coca Cola and McDonalds. All of the three companies has a huge market share outside USA though they have the US origin.

Expatriation

Expatriation is the term used for employees who are send to a foreign country having an assignment for the firm. For example, a senior HR manager of a large multinational firm could be send to take over the charge of a foreign branch. The main causes for the expatriation are as follows-

1. Lack of expertise not found in that particular area. 2. To keep the control of the centre. 3. To rotate the employees to make them skilled.

Host-Country Nationals(HCN), Parent-Country Nationals(PCN) and Third-Country Nationals(TCN)

Host-country nationals(HCN) are the citizens of the country where the firm is operating. For example, if a British firm(GlaxoSmithKline) has a branch in Bangladesh, and it has an employee from the same country(Bangladesh), then the employee is a host-country national. Parent-country nationals(PCN) are the citizens of the country in which the multinational firm has its headquarter. For example, if an American firm has a branch in Dubai(Morgan Fox), and the firm employs an staff from America, then the employee is a parent-country national. Third-country nationals(TCN) are the citizens of a country other than the host or parent country. For example, if a Dutch firm(Shell) has a branch in China, and it employs an staff from Russia, then that staff is a third-country national. Offshoring

Offshoring is an important international staffing issue. It means having local employees abroad do jobs that the firms domestic employees previously did inhouse.

Why Expatriate Assignments Fail?

Researchers are trying for a long time to find out the reason why most of the international expatriation fail(around 80%). Though there is not still any consistent agreement why most of the expatriate assignment fail, some reasons are obvious. They are listed belowCultural Difference: Culture is a very important factor for a firm and it has to adjust or compromise if operating in a foreign land. It has been evident that most of the foreign expatriates failed to understand the foreign culture and subsequently unsuccessful. Family Pressures: An expatriate with his spouse feels very lonely when they transferred abroad. It is difficult to make close friends, a good environment to pass the spare time. As a result, there is a feeling of gloominess among the families and it reflects into the job. Other Issues: Among other issues, lack of technical skill, political instability, lack of motivation etc. can be noted as the causes of expatriate assignments failure.

What employers can do for the expatriates Considering the above reasons for expatriates failure, employers might take the following steps to reduce the reasons that causes the failure. To compensate the expatriate appropriately. To pay for extra living cost abroad. To facilitate job for the expatriate spouse. Train the expatriate properly about the foreign culture. To send only those employees in foreign mission who are interested. Accommodate the expatriates when they are back home.

Repatriation Repatriation is the process of taking back of the expatriates when their mission is complete.