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  • Essay / Essay on expatriation - 3086

    1. IntroductionIn the context of increasing globalization, organizations must face new challenges in order to maintain sustainable competitiveness and adapt to changes in the global market. The developing globalization has encouraged businesses to establish their organizations in different countries and develop new businesses in a multicultural environment. Culture seems to be a key factor in the relationship, interaction and communication between people from different countries when companies become multinational. Expatriation is considered an important element of international human resource management (IHRM) in multinational enterprises (MNCs). Much research has shown that expatriation is a critical area of ​​international business (IB). Well-adjusted expatriates have both low leave opportunities and high efficiency (Bhaskar-Shrinivas et al., 2005; Black, Mendenhall & Oddou, 1985; Hechanova et al., 2003). Although expatriation appears to be the most expensive personnel strategy for multinationals, it remains a feasible means to increase the development of international business organizations. Additionally, expatriation is a method for companies to improve their overall skills that are integrated into the organization's overall strategic human resource management plan. Expatriates could gain valuable knowledge and skills for their business in their home country during their time abroad (Lee, 2005). Additionally, expatriates typically transfer their knowledge, skills, and organizational culture between countries (Graf, 2004). Malinowski, Paik, and Segaud (2002) argued that the most efficient and effective way to transfer critical business capabilities is through expatriation, which is one of the determinants of multinational success.... .. middle of paper.... ..and adequate support for expatriates and their families. Cultural training in China might include relationship building, attention to hierarchy and power, face and confidence, negotiation and bargaining. Expats are also expected to point out infrastructure issues such as varying levels of knowledge, skills and education of employees, limited transportation and the communist bureaucracy's lack of flexibility. In turn, with the rapid growth of the Chinese labor market, organizations must realize the challenges of managing the Chinese labor market. diversity and globalization of the workforce. Due to the extremely competitive situation in the investment management industry, approaches to expatriate and local compensation are not mature enough. Thus, the role of human resources becomes more and more important because global issues of labor market management must not be neglected..