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Assignment on strategic management in international context

Strategic management in an international context (pgbm156), university of sunderland in london.

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Strategic management in an international.

Student Number: 239434706 Student ID: bi59ml

TABLE OF CONTENT

1. introduction, 2. background, 3. open innovation and internationalization, 4. swot analysis of coca-cola, 5. internationalization, localization and competitivness, 6. porters 5 force, 7. organizational purpose, profitability and social, responsibility, 9. personal openion, 10. conclusion, 11. referencing.

describes what a corporation has to do in order to keep growing. It may be summed up in the following key ideas:  People: Create an amazing work environment that motivates employees to reach their full potential.  Portfolio: Provide the public with a selection of high-quality beverage brands that anticipate and meet consumers' needs and wants.  Planet: Develop and promote sustainable communities as a conscientious citizen who makes an impact.  Profit: Optimize shareholders' long-term returns while considering our overall  Productivity: Be a highly effective, lean, and fast-moving organization Question one: open innovation and internationalization The first section of the assignment will be critically evaluating the open innovation model using Henry Chesbrough open innovation concept and Open innovation is a relatively recent concept. Dr. Henry Chesbrough originally used the word, and he characterized it as follows: Henry Chesbrough's open innovation concept. Through the bold external ideas offered by partners and consumers, open innovation seeks to improve the organization's capacity to generate or develop new ideas for solutions and products to succeed in the marketplace. Since the ideas originate directly from external contributors, the teams may save expenses, risk, dedication, and time by utilizing the ideas that are gathered and evaluated throughout the research stage. (Parker, 2022). There are numerous platforms which are available to assist corporations, organizations, engineers, and others worldwide in fostering innovation and monitoring innovation initiatives. Coca-Cola is turning away from a closed, protected approach to innovation in favour of open techniques such as crowdsourcing and co-creation for its new product development projects. (Marketing Mag, Coca-Cola to adopt more open innovation style 2012) The following are some further open innovation platforms that are utilized by different businesses worldwide:  Brilliant Thought

 Imaginatik  Trendy Innovation  Nosco  Hyve  idClic  Spigit  100 accessible  The Chaordix Figure 1: Image Source : New & Improved LLC There are fountain dispensers where which people may have seen where they can buy an

The new product uses a mobile application to record the taste so that customers may access it from any other Freestyle machine. Customers are at the center of the production process with this open innovation concept, as Coca-Cola incorporates suggestions for tastes into outside ideas that can be evaluated and managed as a new product line. (Mellahi et al., 2010) SWOT Analysis of Coca Cola A SWOT analysis is a methodology for assessing a company's competitive standing in the market that is used in strategic planning. Four primary attributes are analyzed, which are commonly used to measure a business's potential level of competition in its industry. A well- conducted SWOT analysis might inspire your imagination for new goods or directions, or it can provide you with a fact-based analysis from which to make decisions. (White, 2022) The purpose of a SWOT analysis is to help with a practical, fact-based, data-driven examination of the advantages and disadvantages of a company, projects, or the industry. To maintain the analysis's accuracy, the organization must steer clear of gray regions and preconceived notions in favor of real-world scenarios. It should serve as a suggestion for businesses rather than a strict requirement. (Kenton) The Coca-Cola SWOT analysis can identify the tactics that can assist the business improve its standing and increase sales. It highlights shortcomings according to organizational structure and culture, as well as the consequences of competition. By taking opportunities into consideration, the organization may revamp its plans and initiatives. The corporation may consider expanding its operations to generate revenue and maintain a stable position in the market. Moreover, it is adaptable to modern technology. (EdrawMax). Below we are going to discuss SWOT analysis of the company in detail. Strength:

The initial step for Coca-Cola is to increase their market share by entering high-buying areas. For most businesses, market penetration is crucial. Then, in this business, innovation alone may advance more quickly:

• Coca-Cola is the most popular beverage brand, available in 200 countries, and it won the 2011 highest brand equity award. • The corporation is valued at $79 billion. Limca, Sprite, Fanta, Thumps Up, Maaza, Kinley Water, and Minute Maid are some of its subsidiaries.
• The business distributes a product to the most remote locations and has the strongest supply chain. Its extensive worldwide reach has helped to establish its brand image.
• It collaborates with well-known brand ambassadors for marketing and promotion. It continues to use a successful marketing plan. Coca-Cola delights in its consumer Weakness: A corporation must be aware of its weaknesses in addition to its strengths. They can take the required actions to lessen their influence once they've determined what factors are impeding their growth:
• The company's soft drinks have a high sugar content and other ingredients that are linked to health issues; • PepsiCo's aerated drinks are providing it strong competition for market share
• The corporation has not yet started a food business, in contrast to PepsiCo. The main emphasis is on drinks. Furthermore, it has not demonstrated any interest in producing healthful beverages thus far.
• Despite having a large portfolio of brands, the corporation mostly relies on the Sprite and Coca- Cola names.
• The business has come under fire for problems with water management and for using groundwater even in areas with a shortage of it. Opportunities:

Source:EdrawMax Online Question 2. Internationalization, Localization & competitiveness Under this section we will be discussing about how coca cola internationalize its products and how it is working in local markets and applying porters five rule to know competitive advantage. A visible market approach that considers consumer behavior, purchasing patterns, and societal differences that are present in every nation where a corporation conducts business is known as a localization strategy. Respecting cultural norms, such as serving Coca-Cola consumers appropriately, is crucial. Globalized demand, in the eyes of Coca-Cola, is a shift in the relative demand for various kinds of labor. implies that although some businesses get a rise in demand because of globalization, others see a drop in demand when their employment is relocated

elsewhere. Even during the epidemic, Coca-Cola was impacted by the political ramifications of the growing globalization trend. Cost management, differentiation, cost focus, and focus differentiation are the tactics. In terms of cost management tactics, a company seeks to position itself as a low-cost manufacturer. The Coca-Cola Company maintained its position by utilizing several crucial elements that provide a stable competitive advantage. Three key tactics are identified by Michael Porter as being able to provide businesses a competitive edge. These three tactics are focus, distinction, and cost cutting (2022). Coca-Cola dominates its sector by increasing competitiveness, brand recognition, consumer loyalty, and value through competitive differentiation methods. To achieve a dominating position in the industry, Coca-Cola employs a range of competitive tactics aimed at enhancing its core competitiveness, brand recognition, customer loyalty, and value awareness. Thanks to its diversification approach, Coca-Cola has become the most well-known brand worldwide for a wide range of products, including fruit juices, coffee, tea, sports drinks, water, and soft drinks (Bose and Dey, 2019, p. 9). Businesses employ a variety of tactics to persuade clients to pay more for their goods and services by highlighting the unique, fulfilling characteristics of their offerings. Companies use distinguishing tactics based on their unique selling propositions when market competition is intense, industry differentiation is lacking, and consumer wants are diverse. Porter’s Five Forces of Coca-Cola Threat of New Entrants: Medium Pressure There aren't many obstacles to entering the beverage business: neither capital nor customer replacement costs exist. Brands for brands that are new to the market are priced similarly to COLA goods. Coca-Cola is a brand as well as a beverage. For a considerable amount of time, this market share is crucial, and devoted consumers are unable to try the new brand.

The following are the Coca-Cola Company's primary goals:  Change the world and leave your mark.  Create popular drink brands and selections to revitalize people's bodies and spirits.  Build a more sustainable business and a more equitable future that improves the lives of individuals, groups, and the environment.  Become well-known around the world as an ethical and responsible business.  To survive in the world of the future, accelerate sustainable growth. Source: cocacolacompany Corporate social responsibility Coca-Cola is dedicated to changing the world for the better by using its size and power. The corporation has five main areas of emphasis for its Corporate Social Responsibility (CSR) strategy:

 World Without Waste: By 2030, Coca-Cola wants to have collected and recycled one bottle or can for each one sold.  Eco-Friendly Packaging: By 2025, Coca-Cola aims to have all of its packaging recyclable.  Water Stewardship: Restocking the water used in its processes is a priority for Coca- Cola.  Women's Empowerment: In its supply chain and local communities, Coca-Cola is dedicated to empowering women.  Sustainable Communities: Coca-Cola is dedicated to fostering a more sustainable future for all by aiding local communities. The business has come a long way toward achieving its CSR objectives. Coca-Cola, for instance, collected and recycled 69% of the bottles and cans it sold worldwide in 2021. With 48% of its PET bottles manufactured from recycled content in 2021, the firm has also made headway toward its aim of having 100% of its packaging recyclable by 2025. Furthermore, via a variety of initiatives, Coca-Cola has empowered over 5 million women in its supply chain and communities, replenishing 113% of the water it utilized in its operations in 2021. (LinkedIn login, sign in) Financial performance To $43 billion, net revenues increased 11%, while organic revenue increased 16%. An 11% increase in price/mix and a 5% increase in concentrate sales were the main drivers of this accomplishment. The previous year's operating margin was 26%; this year it was 25%. Strong topline growth helped the operating margin, but the BODYARMOR acquisition, greater operational expenses, more marketing spending, and currency headwinds had a negative effect. (Admin, 2023)

In summary, the company's most significant assets are the flavor of its beverages, the Coca-Cola System, and its potent marketing arsenal. The firm is exerting efforts in Page%|%44"%order to supply nutritious beverages, and safeguard the environment for the future generations. The business aspires to digitize every aspect of its operations. To meet the need of those who are health concerned, we advise Coca-Cola to enter the market for healthy products. To draw customers from new areas, Coca-Cola could also think about launching snacks and broadening the range of products they provide. Coca-Cola has demonstrated efficacy in employing diverse corporate and business strategies to synchronize the aims and ambitions of every company division and operate as a unified unit to endure and excel in a fiercely competitive industry. By doing this, the company is able to combine and utilize its resources more efficiently. It is no accident that Coca-Cola has become the most well-known beverage manufacturer and producer in the world. It is evident that the management of the company has positioned the company strategically within the beverage industry. Only thorough market research on the company's customers, internal processes, and supply chain will be able to do this. Reference 1. Admin (2023) Coca-Cola Pestel Analysis - The Strategy Story, The Strategy Story - Simplifying Business Strategies. Available at: thestrategystory/blog/coca- cola-pestel-analysis/ (Accessed: 11 January 2024). 2. Bose, I. and Dey, S., 2019. A Critical Discourse on the Workforce Localisation in the Globalised Era: Some Reflections. Review of Management, 9. 3. Coca Cola Swot Analysis: EdrawMax Online (no date) Edrawsoft. Available at: edrawmax/article/coca-cola-swot-analysis.html (Accessed: 14 December 2023). 4. repozitorij.efzg.unizg/islandora/object/efzg%3A5584/datastream/PDF/view (Accessed: 14 December 2023). 5. Kenton, W. (no date) SWOT analysis: How to with table and example, Investopedia. Available at: investopedia/terms/s/swot.asp (Accessed: 15 December 2023).

• LinkedIn login, sign in (no date) LinkedIn. Available at: linkedin/pulse/csr-unveiled-coca-colas-impactful-strategies-g8y8f (Accessed: 11 January 2024).
• Marketing Mag (2012) Coca-Cola to adopt more open innovation style, Marketing Mag. Available at: marketingmag.com/news/coca-cola-to-adopt- more-open-innovation-style/ (Accessed: 14 January 2024).
• Mellahi, K. et al. (2010) Marketing strategies of mncs from emerging markets: Internationalisation and market entry mode, International Marketing Review. Available at: emerald/insight/content/doi/10.1108/imr.2010.03627caa.001/full/ html (Accessed: 13 December 2023).
• Parker, B. (2022) Open innovation: A key to market success!, Business Strategy Hub. Available at: bstrategyhub/open-innovation-a-key-to-market-success/ (Accessed: 14 December 2023).
• Strategic management in an international context – coca-cola: Free essay examples (2022b) Fresh Essays Samples |. Available at: samples.freshessays/strategic-management-in-an-international-context- coca-cola (Accessed: 14 December 2023).
• White, J. (2022) What is a SWOT analysis? Download our free template, Forbes. Available at: forbes/advisor/business/what-is-swot-analysis/ (Accessed: 15 December 2023).
• Multiple Choice

Module : Strategic management in an international context (PGBM156)

University : university of sunderland in london.

• Discover more from: Strategic management in an international context PGBM156 University of Sunderland in London 7   Documents Go to course
• More from: Strategic management in an international context PGBM156 University of Sunderland in London 7   Documents Go to course

CIPD Level 7OS05 Assignment Example: Managing People In An International Context

About this unit:.

This unit is about the obstacles or challenges faced by organisations in expanding the business and scope of future activities. This unit describes the reason and process of operation of organisations globally, different forms of operation, and problems in operation faced by the organisation.

What you will learn:

The students will learn through this unit the challenges of managing people in an international context. Various things appear to be noticed in creating an associative, qualified, and productive team on an international level, like cultural differences, different work styles, and language barriers. Finally, students will evaluate the process of managing people internationally, highlighting areas such as management, communication, religion, diversity, and inclusion.

Our Diploma Writers Covering All Learning Outcomes & Assessment Criteria of This Unit 

7OS05 Task 1: Understand how major strategic and contextual forces shape the management of people in international organisations.     1.1 Analyse the different ways in which organisations operate and trade overseas.     1.2 Explain the different ways in which organisations expand their activities internationally.     1.3 Review the major alternative international organizational forms and their consequences for the management of people.  1.4 Discuss major contemporary ethical issues in the field of international management and employment.   

7OS05 Task 2 Understand how and why people management practice varies between different countries and regions across the world.     2.1 Compare the established political and legal systems in major global economies.     2.2 Appraise institutional arrangements in different countries in the fields of corporate governance, training, welfare, and trade unions.     2.3 Critically analyse research concerning how workplace cultures vary around the world.     2.4 Advise about the major ways in which people practice varies globally.    

7OS05 Task 3: 3 Be able to manage staffing and employment practices in international organisations.     3.1 Design an appropriate international staffing strategy, including for expatriate staff.     3.2 Plan the effective management of talent in international organisations.     3.3 Justify the case for diversity and inclusion in international contexts.    

7OS05 Task 4: Understand effective and sustainable people management activities in international contexts.      4.1 Critically discuss the major challenges facing people practice managers in international organisations.     4.2 Influence effective communication practice in international organisations.     4.3 Assess the effective management of performance in international organisations.     4.4 Justify the need for flexible working initiatives in international organisations.    

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Looking for assignment help UK with your CIPD Level 7 coursework? Our expert writers are here to assist you with CIPD Assignment help tailored to your needs. Whether you're studying the challenges of managing people in an international context in 7OS05, or exploring the dynamics of cultural differences, work styles, and language barriers, our team can provide the support you need. In this unit, you'll examine the complexities of managing a diverse, productive team across borders, focusing on key topics like communication, diversity, and inclusion. Our writers will guide you through these critical areas and help you critically evaluate management practices in international settings. UK students can pay our experts to get high-quality solutions, with the added benefit of cipd level 7 assignments examples that demonstrate how to approach assignments effectively. You can also find the Solution of   5HR01 Employment Relationship Management Assignments. 

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International Human Resource Management Assignment: HR Practices In MNCs

Task: How can multinational companies operating across international borders, ensure that their human resource policies are applied equitably throughout the whole organisation, in order to generate company-wide thinking? Within your analysis, you must provide relevant organisation-based examples to support theoretical arguments. The assignment must have a wide and visible application to industry, through the application of appropriate and numerous organisational examples.

Introduction The present international human resource management assignment covers the concept ofinternational HRM which is classified as a series of activities which are aimed at the management of human resourceat world-wide level. It strives to achieve the goals of organization and obtain an advantage among its competition within the own country and other parts of the world. International HRM includes various functions like providing a training, appraising employees, selecting, shortlisting and recruiting employees across the globe. Moreover, the HR managers here do also perform some additional functions like expatriating the management and managing the global skills within the organisation. There are 3 types of employees noted in the international human resource management assignment which are management by the HR managers. First, the employees from the home country are those which reside in the same country where the corporate office or head office of the company is situated. Secondly the employees of the host country are those employees have their place of residence in the country where subsidiaries have their existence. Third, employees of the third country are those Employees who are not belong to any above category are classified in this category.

Global HR policies In terms of HRM, a key issue facing the nationals of the host country is the quantum with which multinational corporations incorporate parent company human resource policies into global policies of human resource. This is based on some factors say, the structure of the company, company’s global influence and its market capture (Alkalha, et al., 2012).

The major constraint which multinational companies consider before incorporating various factors into its policies is the culture. Many human resource policies of multinational companies consider a culture of host country before incorporating where they put major focus gender. If the host country does not appreciate gender discrimination, the company accordingly will require preparing human resource policies. In countries where gender-based discrimination is socially and culturally acceptable, multinational companies may or may not define the policies which are dependent on the current policies. The parent company has the discretion to deal with this issue in consideration of the company’s value and goals (Brauns, 2013). Today, the world has become more vibrant and competitive. Globalization too has become a buzzword in the business world, in which strategies and policies are based on competition that isprevailing across the globe. Because this factor outlined in the international human resource management assignment greatly affects the organization's revenue and profit, multinational companies focus to formulate policies which are unbiased in terms of gender. A study was conducted on the international human resource management assignment in order to differentiate the HR practices of insurance companies in India and other MNCs, the results appeared that the companies in India differentiate wages and positions by gender. However, this practice is not obvious among multinational companies. Many companies today are looking for an employee who is competitive in his skills who can do the job rightly. Work is not limited to men or women, it is about the right people (Altarawneh, 2016). Therefore, it is justified that in big corporate who operates globally develop their strategies and corporate goals considering globalization and try to gain corporate and competitive advantages on a global scale, gender will not affect human resource policies.

A company named Nestle operating in France is selected in the present context of international human resource management assignmentwhich is a host country had faced various challenges in terms of gender imbalance, which has affected its global reputation. The trade union believes that the human resource policies of multinational companies in other areas such as recruitment and training are highly discriminatory. There had been no promotions of the women to senior positions, received no training, and senior management has not addressed many of their demands. This has led to an imbalance in the salary structure between male and female staff, women’s training opportunities are limited, and women’s opportunities for promotion to senior positions are rare. French legislation issued a number of bills to stop the discrimination done by the companies on the basis of their employee’s gender (Chung, et al., 2014). Companies with more than 200 employees must even have an equality committee. After then, Nestlé France lacks gender quality and therefore lags behind other global competitors such as Danone. The management was indeed concerned about the company’s discriminatory practices, so a survey was conducted and the results showed that discrimination against women is serious. As a result, Nestle changed its human resources policy to solve this problem. By 2003, the company had appointed female managers to senior positions and appointed female members to the board of directors. Nestle also proposed some mechanisms to ensure the equality among gender as part of its HR policy held globally. Nestle clearly exemplifies how human resources policies which are biased upon gender affect the company’s reputation. If companies do not focus to solve these problems, they will not be able to gain advantage among its competition compared to other companies and will result in loss making business (Eriksson, 2017). The Norway case examined in the international human resource management assignment had also considered the gender-unbiased policies in Europe. In Europe, Norway is a pioneer in gender equality, it is also one of the top countries which emphasize a women’s participation in the labour market. However, even after obtaining gender equality status, the Norwegian government is still aware that companies operating in Norway do not have too many female representatives in leadership positions. To solve this problem identified in the international human resource management assignment, the government encourages companies to draft and incorporate human resource policies which provide vast opportunity to the female staff in order to enhance their role in supervisory positions. Moreover, the reason they made such policies is that the country had noticed that there had been wastage of 50% of the country’s women population, and when women can contribute to society in the same way as men, they are not using these resources (Budhwar, et al., 2019).

It is stated in the international human resource management assignmentthat there had also been examples of gender pay inequalities among across the globe. It is observed in many countries that men work more than women because women have to manage the house hold chores and do not give more emphasize on work. Considering the factors, many companies situated in Asian countries provide less salaries or wages to the female staff as compare to male staff. Such gender pay inequalities should also be considered by the managers of HRfor boosting the growth of the company situated in any economy (Harzing and Pinnington, 2010).

What are the strategies to global HR management discussed in the international human resource management assignment? The shortage of qualified HR personnel has considered a main limitation for multinational companies for expanding the sales volume at an international level. The development of a society which is knowledge-based and the pressure to open up emerging markets have prompted cutting-edge MNCs for recognizing more than ever that human resources and intellectual capital are as essential as financial assets in establishing a sustainable advantage over competition. In order to follow their leadership, the CEOs of other MNCs will have to bridge the gap between their company's HR reality and rhetoric. Now, HR must occupy an important position on the board.Good human resource management in MNCs always try to get the right person for right job at a right salary package. Then, these international managers must be integrated into a tightly connected network where they can identify quickly and take advantage of global good ideas (Gooderham, et al., 2019). Such type of network majorly linked on the continuity of the executives. In turn, this requires professional managers to ensure that when vacancies arises in any offices around the world, internally qualified senior managers are available readily, and excellent managers do not switch jobs because they remain unrecognized in the organisation. The solution to be adopted by MNCs discussed in this segment of international human resource management assignment is to follow the company who have much experience in the field of training, hiring, retaining and managing the good workforce around the world. Many of such companies are borne in Europe only. For example, Unilever and International Business Machines Corporation both use their global human resources functions to gain a competitive advantage. Unilever has put more constraint on having a good HR in the company. The HR has also appointed to join the board to develop the business by shortlisting, hiring and managing the in house talent and people in market. It is since 1989; the company has defined again 75% of the managerial posts and increased the number of managers therein. It is mentioned in the international human resource management assignmentthat IBM has also set a global HR strategy where instead of firing employees to reduce costs, they had entered into new assignment and expands it to new overseas market in order to achieve more profits (Mueller and Tyalor, 2013).

There are various strategies which the HR managers consider for developing a hostile environment in the head office and the offshore branches. Such strategies are listed below within the international human resource management assignment.

• Glass ceiling at local national level should be broken down: The first and most fundamental step in establishing a global human resource plan is to end all preference for managers, who belongs to the same country where the organisation is located. MNCs should treat nationals of the country where their headquarters are located as prospective expatriates, while treating other as "local nationals." But in the market of today globally where they distinction is made by the company gives a disadvantage to the company and should need to resolve them with strong reasons (Morley and Heraty, 2019).
• Lifeline to be traced: Considering the strategy that the company had adopted, the organisation should also identify those activities which can provide a success around the globe and also recruit a person who is ready to take such responsibility. Such positions are known as ‘lifelines’ to the organisation. They are accounted as only 10% in the company’s workforce. In the case of IBM considered in the international human resource management assignmentwho are into service sector, they had identified the people are who are technically sund to provide the services at local and internal level in host country. The strategy of IBM had taken around 18 months to develop a good sound workforce to reach to 100000 employees (Olson, et al., 2018).
• Global database to be created to highlight the existence of company and finding its talent: The major tool of the global human resources policy must be a global database. This is simply because multinational companies now have more strategic positions distributed around the world and have vigilance over the development of the manager’s career more. Moreover, there are some multinational companies which have are editing global human resource databases in the past ten years, these databases still emphasize on the top positions in the organization, ignoring managers at middle level and potential stars which are identified through their ranks.
• Mobility pyramid should be developing: HR managers should also highlight the person in the workforce who are ready to move to other parts of the world to manage the business internationally. Companies also keep a data of people who are ready to relocate and who are not. Many companies have also started considering those managers as glopats because they are considered to be business builder in the new market (Nankervis, et al., 2019).
• Leadership capital to be identified in the international human resource management assignment: The Company should clearly highlight that personal input to the system is voluntary, but human resource managers and other supervisors will still use the data to plan promotional activities and international tasks and evaluate the needs of training. Please pay attention to the personal privacy regulations in the EU’s new directive of Data Protection and similar regulations to be introduced in Japan as well. These regulations basically require employee consent to collect or disseminate any private information.
• Assess the skill gap and bench strength: HR managers should ask the company’s workforce regarding their vision and aim towards career development in the same organisation. HR partners after having an overview regarding this, can introduce a new training and mentoring methodology in the company’s culture to promote and develop such required skills by workforce. Unilever uses the 9 point framework for its senior managers where they keeppersonal information of those managers in the talent pool. The talent pool defines keep on reviewing those managers on particular defined parameters. Such mechanism is adopted at every office in every country and helps the managers to grow well by getting their productivity and efficiency measured and identified (Reiche, et al., 2018). IBM too, has similar type of framework which they keep on updating to get the best results out of that. Such strategy as explored in the international human resource management assignment has also proved to be well for many companies.

Standardisation and Localisation in global HR management Today, HR management is considered as pivotal aspects in internationalisation. Human resource management has a huge competitive advantage because it is difficult to imitate. HR management has its unique qualities, which cannot be ignored in international research. First of all, human resource management mainly relies on national culture and also pertains its own qualities too. Secondly the human resource management is considered as the international prosperity. Finally, human resource management interacts directly with the people and influences their behaviour. Therefore, it is clear on this international human resource management assignment that by enhancing the importance of human resource management in business at international level, the quantum of policies on literature of HRM and practices related to standardization and localization debates has greatly increased (Singh and Raghubanshi, 2013). Standardization means that companies use similar marketing mix in as many nations as possible when operating outside their national boundaries. Companies which chase standardization are called global companies, and their strategies are called standardized strategies. Some examples of products world-wide include Sony TVs, personal computers, Gillette shaving blades, many financial institutions, Coca-Cola, etc. However, it is worth adding that for the standardization of documents. The other factor is known to be a localisation. The research on international human resource management assignmentillustrates that it is the process where company alters its cultures, tradition, and way of working, management in such a way to get the essence of local economy in the country.

HR managers here always tend to manages the workforce and maintain a bridge between standardisation and localisation. They always consider their long term existence in the country through managing the manpower and diverting them towards work culture related to own country and the behaviour of other country too. By this, the growth of an individual also enhances because they get to adapt themselves in working style of different economies and gets more options from other countries as well (Stredwick, 2013).

Importance of application of HR Policies The human resources policy provides employees and managers with written guidance on how to deal with a wide range of issues relating to employment. They play acrucial role in effectively implementing the human resource strategy in the organisation. They provide a transparency and consistency for managers and their employees, help strengthen the psychological contract and give rise to a positive culture within the organisation. The human resources policy mentioned in the international human resource management assignment ensures that the organisation complies with prevailing laws, contracts of employment and collective bargaining agreements. Therefore, one of the merits of having the human resources policy is that it minimises the risk of liability in corporate or employee litigation. The human resources policy also covers areas that are critical to the mission of the company to guarantee the efficiency in the operations (Peltonen and Vaara, 2018).

In the subsidiaries or offshore offices, HR policies are drafted and implemented in the organisation considering the culture and practice used in other nation. It is the responsibility of the employer that they should handover the translated copies in the entire jurisdiction in which they operate because every law of each country require to be framed in local language.

It is stated in the international human resource management assignment that the investment in human resources is necessary for Anglo-Dutch Unilever. They have a place on the board’s executive committee, which is dedicated to cultivating internal talents and finding future leaders in the market. As a result, 95% of Unilever’s top 300 managers are entirely local. Introduce internationalization to managers through work content and overseas tasks.

In the organisation like Coca Cola in host country, it is observed that the when the equitably HR policies are drafted for the organisation as a whole, they help the people towards wide thinking. By such practices and policies, the HR managers do also get the right person for right job. It is also required by the management that the cohesive network should be included which will leverage and identify the good ideas for the betterment of business. From the discussion on international human resource management assignment, it is believed that such framework or policies are more importance tan establishing the systems in the organisation to embark business. Many US based MNCs do not have the system developed which provide adequate training, screen, monitoring new and old people in the organisation (Peltonen and Vaara, 2018). The HR managers here need to have a good experience in mitigating such issues faced by various organisations and to promote a healthy business.

There is a need to include succession planning and retention plans. The international network of the company in providing the knowledge and skills is based on the continuity and connections between the people. The continuity of administrative staff leads to reduction in labour turnover, opportunity and recruitment costs. Therefore, with the intensification of international talent competition, it is increasingly important for companies to retain management personnel. Where the monetary incentives are not enough, the plan must consider thepersonal growth, challenges, and job satisfaction. Moreover, the career development plan also is prepared by the HR managers for the executive officers and the same needs to be develop within first 100 days of incorporations. The findings obtained in the international human resource management assignmentmentions that such steps provide the satisfaction among employees and also raise a employability factor towards company. Many companies have benefitted with this approach and have results a good growth in terms of expansion, profitability and reduced employee turnover rates (Wilson, 2014).

Conclusion At the end of the report on international human resource management assignment, it analyzed the different strategies and policies adopted by multinational companies to formulate effective regulations. Organizations need to consider various methods to globalize their business. The report on international human resource management assignment analyzes that standardization and localization strategies will affect the organization's culture. The organization needs to adopt best practices in the global market to effectively manage human resources. The main ideas include meeting human resource needs at the regional, national and local levels. The main methods that require a global human resource strategy include global databases. This is necessary because multinational companies are required to include more strategic positions and supervise the career development plans of senior managers.

Reference Alkalha, Z., Al-Zu’bi, Z., Al-Dmour, H., Alshurideh, M. and Masa’deh, R., 2012. Investigating the effects of human resource policies on organizational performance: An empirical study on commercial banks operating in Jordan. International human resource management assignmentEuropean Journal of Economics, Finance and Administrative Sciences, 51(1), pp.44-64.

Altarawneh, I.I., 2016. Strategic human resources management and its impact on performance: the case from Saudi Arabia. International Journal of Business Management & Economic Research, 7(1), pp. 14-15.

Brauns, M., 2013. Aligning strategic human resource management to human resources, performance and reward. The international business & economics research journal. 12(11), 4-5.

Budhwar, P., Pereira, V., Mellahi, K. and Singh, S.K., 2019. The state of HRM in the Middle East: Challenges and future research agenda. Asia Pacific Journal of Management, 36(4), pp.905-933.

Chung, C., Sparrow, P. and Bozkurt, Ö., 2014. South Korean MNEs’ international HRM approach: Hybridization of global standards and local practices. Journal of World Business, 49(4), pp.549-559.

Eriksson, Y.U., 2017. Global HRM standards as boundary objects: a device to enhance legitimacy and status. Personnel Review.

Gooderham, P.N., Mayrhofer, W. and Brewster, C., 2019. A framework for comparative institutional research on HRM. International human resource management assignmentThe International Journal of Human Resource Management, 30(1), pp.5-30.

Harzing, A.W. and Pinnington, A. eds., 2010. International human resource management. Sage.

Morley, M.J. and Heraty, N., 2019. The anatomy of an international research collaboration: Building cumulative comparative knowledge in human resource management.

Mueller, B. and Taylor, C.R., 2013. Convergence in global markets: The great standardization versus localization debate is (finally) put to rest. In Media and convergence management (pp. 89-105). Springer, Berlin, Heidelberg.

Nankervis, A., Baird, M., Coffey, J. and Shields, J., 2019. Human resource management. Cengage AU.

Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73.

Peltonen, T. and Vaara, E., 2018. Critical approaches to comparative HRM. In Handbook of research on comparative human resource management. Edward Elgar Publishing.

Reiche, B.S., Harzing, A.W. and Tenzer, H. eds., 2018. International human resource management. SAGE Publications Limited.

Singh, S. and Raghuvanshi, R., 2013. Changing Dimensions of HRM Functions: An Evaluation. International Journal of Engineering and Management Research (IJEMR), 3(4), pp.23-28.

Stredwick, J., 2013. An introduction to human resource management. Routledge.

Wilson, J.P., 2014. International human resource development: Learning, education, and training for individuals and organizations.International human resource management assignment Development and Learning in Organizations.

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Managing International Assignments

International assignment management is one of the hardest areas for HR professionals to master—and one of the most costly. The expense of a three-year international assignment can cost millions, yet many organizations fail to get it right. Despite their significant investments in international assignments, companies still report a 42 percent failure rate in these assignments. 1

With so much at risk, global organizations must invest in upfront and ongoing programs that will make international assignments successful. Selecting the right person, preparing the expatriate (expat) and the family, measuring the employee's performance from afar, and repatriating the individual at the end of an assignment require a well-planned, well-managed program. Knowing what to expect from start to finish as well as having some tools to work with can help minimize the risk.

Business Case

As more companies expand globally, they are also increasing international assignments and relying on expatriates to manage their global operations. According to KPMG's 2021 Global Assignment Policies and Practices Survey, all responding multinational organizations offered long-term assignments (typically one to five years), 88 percent offered short-term assignments (typically defined as less than 12 months), and 69 percent offered permanent transfer/indefinite length.

Managing tax and tax compliance, cost containment and managing exceptions remain the three principal challenges in long-term assignment management according to a 2020 Mercer report. 2

Identifying the Need for International Assignment

Typical reasons for an international assignment include the following:

• Filling a need in an existing operation.
• Transferring technology or knowledge to a worksite (or to a client's worksite).
• Developing an individual's career through challenging tasks in an international setting.
• Analyzing the market to see whether the company's products or services will attract clients and users.
• Launching a new product or service.

The goal of the international assignment will determine the assignment's length and help identify potential candidates. See Structuring Expatriate Assignments and the Value of Secondment and Develop Future Leaders with Rotational Programs .

Selection Process

Determining the purpose and goals for an international assignment will help guide the selection process. A technical person may be best suited for transferring technology, whereas a sales executive may be most effective launching a new product or service.

Traditionally, organizations have relied on technical, job-related skills as the main criteria for selecting candidates for overseas assignments, but assessing global mindset is equally, if not more, important for successful assignments. This is especially true given that international assignments are increasingly key components of leadership and employee development.

To a great extent, the success of every expatriate in achieving the company's goals in the host country hinges on that person's ability to influence individuals, groups and organizations that have a different cultural perspective.

Interviews with senior executives from various industries, sponsored by the Worldwide ERC Foundation, reveal that in the compressed time frame of an international assignment, expatriates have little opportunity to learn as they go, so they must be prepared before they arrive. Therefore, employers must ensure that the screening process for potential expatriates includes an assessment of their global mindset.

The research points to three major attributes of successful expatriates:

• Intellectual capital. Knowledge, skills, understanding and cognitive complexity.
• Psychological capital. The ability to function successfully in the host country through internal acceptance of different cultures and a strong desire to learn from new experiences.
• Social capital. The ability to build trusting relationships with local stakeholders, whether they are employees, supply chain partners or customers.

According to Global HR Consultant Caroline Kersten, it is generally understood that global leadership differs significantly from domestic leadership and that, as a result, expatriates need to be equipped with competencies that will help them succeed in an international environment. Commonly accepted global leadership competencies, for both male and female global leaders, include cultural awareness, open-mindedness and flexibility.

In particular, expatriates need to possess a number of vital characteristics to perform successfully on assignment. Among the necessary traits are the following:

• Confidence and self-reliance: independence; perseverance; work ethic.
• Flexibility and problem-solving skills: resilience; adaptability; ability to deal with ambiguity.
• Tolerance and interpersonal skills: social sensitivity; observational capability; listening skills; communication skills.
• Skill at handling and initiating change: personal drivers and anchors; willingness to take risks.

Trends in international assignment show an increase in the younger generation's interest and placement in global assignments. Experts also call for a need to increase female expatriates due to the expected leadership shortage and the value employers find in mixed gender leadership teams. See Viewpoint: How to Break Through the 'Mobility Ceiling' .

Employers can elicit relevant information on assignment successes and challenges by means of targeted interview questions with career expatriates, such as the following:

• How many expatriate assignments have you completed?
• What are the main reasons why you chose to accept your previous expatriate assignments?
• What difficulties did you experience adjusting to previous international assignments? How did you overcome them?
• On your last assignment, what factors made your adjustment to the new environment easier?
• What experiences made interacting with the locals easier?
• Please describe what success or failure means to you when referring to an expatriate assignment.
• Was the success or failure of your assignments measured by your employers? If so, how did they measure it?
• During your last international assignment, do you recall when you realized your situation was a success or a failure? How did you come to that determination?
• Why do you wish to be assigned an international position?

Securing Visas

Once an individual is chosen for an assignment, the organization needs to move quickly to secure the necessary visas. Requirements and processing times vary by country. Employers should start by contacting the host country's consulate or embassy for information on visa requirements. See Websites of U.S. Embassies, Consulates, and Diplomatic Missions .

Following is a list of generic visa types that may be required depending on the nature of business to be conducted in a particular country:

• A work permit authorizes paid employment in a country.
• A work visa authorizes entry into a country to take up paid employment.
• A dependent visa permits family members to accompany or join employees in the country of assignment.
• A multiple-entry visa permits multiple entries into a country.

Preparing for the Assignment

An international assignment agreement that outlines the specifics of the assignment and documents agreement by the employer and the expatriate is necessary. Topics typically covered include:

• Location of the assignment.
• Length of the assignment, including renewal and trial periods, if offered.
• Costs paid by the company (e.g., assignment preparation costs, moving costs for household goods, airfare, housing, school costs, transportation costs while in country, home country visits and security).
• Base salary and any incentives or allowances offered.
• Employee's responsibilities and goals.
• Employment taxes.
• Steps to take in the event the assignment is not working for either the employee or the employer.
• Repatriation.
• Safety and security measures (e.g., emergency evacuation procedures, hazards).

Expatriates may find the reality of foreign housing very different from expectations, particularly in host locations considered to be hardship assignments. Expats will find—depending on the degree of difficulty, hardship or danger—that housing options can range from spacious accommodations in a luxury apartment building to company compounds with dogs and armed guards. See Workers Deal with Affordable Housing Shortages in Dubai and Cairo .

Expats may also have to contend with more mundane housing challenges, such as shortages of suitable housing, faulty structures and unreliable utility services. Analyses of local conditions are available from a variety of sources. For example, Mercer produces Location Evaluation Reports, available for a fee, that evaluate levels of hardship for 14 factors, including housing, in more than 135 locations.

Although many employers acknowledge the necessity for thorough preparation, they often associate this element solely with the assignee, forgetting the other key parties involved in an assignment such as the employee's family, work team and manager.

The expatriate

Consider these points in relation to the assignee:

• Does the employee have a solid grasp of the job to be done and the goals established for that position?
• Does the employee understand the compensation and benefits package?
• Has the employee had access to cultural training and language instruction, no matter how similar the host culture may be?
• Is the employee receiving relocation assistance in connection with the physical move?
• Is there a contact person to whom the employee can go not only in an emergency but also to avoid becoming "out of sight, out of mind"?
• If necessary to accomplish the assigned job duties, has the employee undergone training to get up to speed?
• Has the assignee undergone an assessment of readiness?

To help the expatriate succeed, organizations are advised to invest in cross-cultural training before the relocation. The benefits of receiving such training are that it: 3

• Prepares the individual/family mentally for the move.
• Removes some of the unknown.
• Increases self-awareness and cross-cultural understanding.
• Provides the opportunity to address questions and anxieties in a supportive environment.
• Motivates and excites.
• Reduces stress and provides coping strategies.
• Eases the settling-in process.
• Reduces the chances of relocation failure.

See Helping Expatriate Employees Deal with Culture Shock .

As society has shifted from single- to dual-income households, the priorities of potential expatriates have evolved, as have the policies organizations use to entice employees to assignment locations. In the past, from the candidate's point of view, compensation was the most significant component of the expatriate package. Today more emphasis is on enabling an expatriate's spouse to work. Partner dissatisfaction is a significant contributor to assignment failure. See UAE: Expat Husbands Get New Work Opportunities .

When it comes to international relocation, most organizations deal with children as an afterthought. Factoring employees' children into the relocation equation is key to a successful assignment. Studies show that transferee children who have a difficult time adjusting to the assignment contribute to early returns and unsuccessful completion of international assignments, just as maladjusted spouses do. From school selection to training to repatriation, HR can do a number of things to smooth the transition for children.

Both partners and children must be prepared for relocation abroad. Employers should consider the following:

• Have they been included in discussions about the host location and what they can expect? Foreign context and culture may be more difficult for accompanying family because they will not be participating in the "more secure" environment of the worksite. Does the family have suitable personal characteristics to successfully address the rigors of an international life?
• In addition to dual-career issues, other common concerns include aging parents left behind in the home country and special needs for a child's education. Has the company allowed a forum for the family to discuss these concerns?

The work team

Whether the new expatriate will supervise the existing work team, be a peer, replace a local national or fill a newly created position, has the existing work team been briefed? Plans for a formal introduction of the new expatriate should reflect local culture and may require more research and planning as well as input from the local work team.

The manager/team leader

Questions organization need to consider include the following: Does the manager have the employee's file on hand (e.g., regarding increases, performance evaluations, promotions and problems)? Have the manager and employee engaged in in-depth conversations about the job, the manager's expectations and the employee's expectations?

Mentors play an important role in enhancing a high-performing employee's productivity and in guiding his or her career. In a traditional mentoring relationship, a junior executive has ongoing face-to-face meetings with a senior executive at the corporation to learn the ropes, set goals and gain advice on how to better perform his or her job.

Before technological advances, mentoring programs were limited to those leaders who had the time and experience within the organization's walls to impart advice to a few select people worth that investment. Technology has eliminated those constraints. Today, maintaining a long-distance mentoring relationship through e-mail, telephone and videoconferencing is much easier. And that technology means an employer is not confined to its corporate halls when considering mentor-mentee matches.

The organization

If the company is starting to send more employees abroad, it has to reassess its administrative capabilities. Can existing systems handle complicated tasks, such as currency exchanges and split payrolls, not to mention the additional financial burden of paying allowances, incentives and so on? Often, international assignment leads to outsourcing for global expertise. Payroll, tax, employment law, contractual obligations, among others, warrant an investment in sound professional advice.

Employment Laws

Four major U.S. employment laws have some application abroad for U.S. citizens working in U.S.-based multinationals:

• Title VII of the Civil Rights Act.
• The Age Discrimination in Employment Act (ADEA).
• The Americans with Disabilities Act (ADA).
• The Uniformed Services Employment and Reemployment Rights Act (USERRA).

Title VII, the ADEA and the ADA are the more far-reaching among these, covering all U.S. citizens who are either:

• Employed outside the United States by a U.S. firm.
• Employed outside the United States by a company under the control of a U.S. firm.

USERRA's extraterritoriality applies to veterans and reservists working overseas for the federal government or a firm under U.S. control. See Do laws like the Fair Labor Standards Act and the Family and Medical Leave Act apply to U.S. citizens working in several other countries?

Employers must also be certain to comply with both local employment law in the countries in which they manage assignments and requirements for corporate presence in those countries. See Where can I find international employment law and culture information?

Compensation

Companies take one of the following approaches to establish base salaries for expatriates:

• The home-country-based approach. The objective of a home-based compensation program is to equalize the employee to a standard of living enjoyed in his or her home country. Under this commonly used approach, the employee's base salary is broken down into four general categories: taxes, housing, goods and services, and discretionary income.
• The host-country-based approach. With this approach, the expatriate employee's compensation is based on local national rates. Many companies continue to cover the employee in its defined contribution or defined benefit pension schemes and provide housing allowances.
• The headquarters-based approach. This approach assumes that all assignees, regardless of location, are in one country (i.e., a U.S. company pays all assignees a U.S.-based salary, regardless of geography).
• Balance sheet approach. In this scenario, the compensation is calculated using the home-country-based approach with all allowances, deductions and reimbursements. After the net salary has been determined, it is then converted to the host country's currency. Since one of the primary goals of an international compensation management program is to maintain the expatriate's current standard of living, developing an equitable and functional compensation plan that combines balance and flexibility is extremely challenging for multinational companies. To this end, many companies adopt a balance sheet approach. This approach guarantees that employees in international assignments maintain the same standard of living they enjoyed in their home country. A worksheet lists the costs of major expenses in the home and host countries, and any differences are used to increase or decrease the compensation to keep it in balance.

Some companies also allow expatriates to split payment of their salaries between the host country's and the home country's currencies. The expatriate receives money in the host country's currency for expenses but keeps a percentage of it in the home country currency to safeguard against wild currency fluctuations in either country.

As for handling expatriates taxes, organizations usually take one of four approaches:

• The employee is responsible for his or her own taxes.
• The employer determines tax reimbursement on a case-by-case basis.
• The employer pays the difference between taxes paid in the United States and the host country.
• The employer withholds U.S. taxes and pays foreign taxes.

To prevent an expatriate employee from suffering excess taxation of income by both the U.S. and host countries, many multinational companies implement either a tax equalization or a tax reduction policy for employees on international assignments. Additionally, the United States has entered into  bilateral international social security agreements  with numerous countries, referred to as "totalization agreements," which allow for an exemption of the social security tax in either the home or host country for defined periods of time.

A more thorough discussion of compensation and tax practices for employees on international assignment can be found in SHRM's Designing Global Compensation Systems toolkit.

How do we handle taxes for expatriates?

Can employers pay employees in other countries on the corporate home-country payroll?

Measuring Expatriates' Performance

Failed international assignments can be extremely costly to an organization. There is no universal approach to measuring an expatriate's performance given that specifics related to the job, country, culture and other variables will need to be considered. Employers must identify and communicate clear job expectations and performance indicators very early on in the assignment. A consistent and detailed assessment of an expatriate employee's performance, as well as appraisal of the operation as a whole, is critical to the success of an international assignment. Issues such as the criteria for and timing of performance reviews, raises and bonuses should be discussed and agreed on before the employees are selected and placed on international assignments.

Employees on foreign assignments face a number of issues that domestic employees do not. According to a 2020 Mercer report 4 , difficulty adjusting to the host country, poor candidate selection and spouse or partner's unhappiness are the top three reasons international assignments fail. Obviously, retention of international assignees poses a significant challenge to employers.

Upon completion of an international assignment, retaining the employee in the home country workplace is also challenging. Unfortunately, many employers fail to track retention data of repatriated employees and could benefit from collecting this information and making adjustments to reduce the turnover of employees returning to their home country.

Safety and Security

When faced with accident, injury, sudden illness, a disease outbreak or politically unstable conditions in which personal safety is at risk, expatriate employees and their dependents may require evacuation to the home country or to a third location. To be prepared, HR should have an evacuation plan in place that the expatriate can share with friends, extended family and colleagues both at home and abroad. See Viewpoint: Optimizing Global Mobility's Emergency Response Plans .

Many companies ban travel outside the country in the following circumstances:

• When a travel advisory is issued by the World Health Organization, Centers for Disease Control and Prevention, International SOS or a government agency.
• When a widespread outbreak of a specific disease occurs or if the risk is deemed too high for employees and their well-being is in jeopardy.
• If the country is undergoing civil unrest or war or if an act of terrorism has occurred.
• If local management makes the decision.
• If the employee makes the decision.

Once employees are in place, the decision to evacuate assignees and dependents from a host location is contingent on local conditions and input from either internal sources (local managers, headquarters staff, HR and the assignee) or external sources (an external security or medical firm) or both. In some cases, each host country has its own set of evacuation procedures.

Decision-makers should consider all available and credible advice and initially transport dependents and nonessential personnel out of the host country by the most expeditious form of travel.

Navigating International Crises

How can an organization ensure the safety and security of expatriates and other employees in high-risk areas?

The Disaster Assistance Improvement Program (DAIP)

Repatriation

Ideally, the repatriation process begins before the expatriate leaves his or her home country and continues throughout the international assignment by addressing the following issues.

Career planning. Many managers are responsible for resolving difficult problems abroad and expect that a well-done job will result in promotion on return, regardless of whether the employer had made such a promise. This possibly unfounded assumption can be avoided by straightforward career planning that should occur in advance of the employee's accepting the international assignment. Employees need to know what impact the expatriate assignment will have on their overall advancement in the home office and that the international assignment fits in their career path.

Mentoring. The expatriate should be assigned a home-office mentor. Mentors are responsible for keeping expatriates informed on developments within the company, for keeping the expatriates' names in circulation in the office (to help avoid the out-of-sight, out-of-mind phenomenon) and for seeing to it that expatriates are included in important meetings. Mentors can also assist the expatriate in identifying how the overseas experience can best be used on return. Optimum results are achieved when the mentor role is part of the mentor's formal job duties.

Communication. An effective global communication plan will help expatriates feel connected to the home office and will alert them to changes that occur while they are away. The Internet, e-mail and intranets are inexpensive and easy ways to bring expatriates into the loop and virtual meeting software is readily available for all employers to engage with global employees. In addition, organizations should encourage home-office employees to keep in touch with peers on overseas assignments. Employee newsletters that feature global news and expatriate assignments are also encouraged.

Home visits. Most companies provide expatriates with trips home. Although such trips are intended primarily for personal visits, scheduling time for the expatriate to visit the home office is an effective method of increasing the expatriate's visibility. Having expatriates attend a few important meetings or make a presentation on their international assignment is also a good way to keep them informed and connected.

Preparation to return home. The expatriate should receive plenty of advance notice (some experts recommend up to one year) of when the international assignment will end. This notice will allow the employee time to prepare the family and to prepare for a new position in the home office. Once the employee is notified of the assignment's end, the HR department should begin working with the expatriate to identify suitable positions in the home office. The expatriate should provide the HR department with an updated resume that reflects the duties of the overseas assignment. The employee's overall career plan should be included in discussions with the HR professional.

Interviews. In addition to home leave, organizations may need to provide trips for the employee to interview with prospective managers. The face-to-face interview will allow the expatriate to elaborate on skills and responsibilities obtained while overseas and will help the prospective manager determine if the employee is a good fit. Finding the right position for the expatriate is crucial to retaining the employee. Repatriates who feel that their new skills and knowledge are underutilized may grow frustrated and leave the employer.

Ongoing recognition of contributions. An employer can recognize and appreciate the repatriates' efforts in several ways, including the following:

• Hosting a reception for repatriates to help them reconnect and meet new personnel.
• Soliciting repatriates' help in preparing other employees for expatriation.
• Asking repatriates to deliver a presentation or prepare a report on their overseas assignment.
• Including repatriates on a global task force and asking them for a global perspective on business issues.

Measuring ROI on expatriate assignments can be cumbersome and imprecise. The investment costs of international assignments can vary dramatically and can be difficult to determine. The largest expatriate costs include overall remuneration, housing, cost-of-living allowances (which sometimes include private schooling costs for children) and physical relocation (the movement to the host country of the employee, the employee's possessions and, often, the employee's family).

But wide variations exist in housing expenses. For example, housing costs are sky-high in Tokyo and London, whereas Australia's housing costs are moderate. Another significant cost of expatriate assignments involves smoothing out differences in pay and benefits between one country and another. Such cost differences can be steep and can vary based on factors such as exchange rates (which can be quite volatile) and international tax concerns (which can be extremely complex).

Once an organization has determined the costs of a particular assignment, the second part of the ROI challenge is calculating the return. Although it is relatively straightforward to quantify the value of fixing a production line in Puerto Rico or of implementing an enterprise software application in Asia, the challenge of quantifying the value of providing future executives with cross-cultural perspectives and international leadership experience can be intimidating.

Once an organization determines the key drivers of its expatriate program, HR can begin to define objectives and assess return that can be useful in guiding employees and in making decisions about the costs they incur as expatriates. Different objectives require different levels and lengths of tracking. Leadership development involves a much longer-term value proposition and should include a thorough repatriation plan. By contrast, the ROI of an international assignment that plugs a skills gap is not negatively affected if the expatriate bolts after successfully completing the engagement.

Additional Resources

International Assignment Management: Expatriate Policy and Procedure

Introduction to the Global Human Resources Discipline

1Mulkeen, D. (2017, February 20). How to reduce the risk of international assignment failure. Communicaid. Retrieved from https://www.communicaid.com/cross-cultural-training/blog/reducing-risk-international-assignment-failure/

2Mercer. (2020). Worldwide Survey of International Assignment Policies and Practices. Retrieved from https://mobilityexchange.mercer.com/international-assignments-survey .

3Dickmann, M., & Baruch, Y. (2011). Global careers. New York: Routledge.

4Mercer. (2020). Worldwide Survey of International Assignment Policies and Practices. Retrieved from https://mobilityexchange.mercer.com/international-assignments-survey

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Managing International Assignments: Employer Guidance

Anne morris.

• 28 August 2024

IN THIS SECTION

Organisations deploy personnel on international assignment for many reasons. Whether you are addressing an internal skills gaps, supporting leadership development or looking to improve working relations across borders, for any international assignment to be successful, there will be a multitude of legal, immigration, tax and pensions risks to manage when sending employees overseas.

Global mobility programmes have traditionally been developed with a uniform approach, driven largely by cost management and operational efficiencies. However, organisations are increasingly taking a more flexible and bespoke approach to overseas assignments in order to attain advantage in areas such as compliance and talent development and retention.

While a one-size-fits-all approach to the fundamentals of mobility management may be a commercial reality, overlaying this should be areas of specific consideration and capability that can be adapted to the specific needs and risks of each international assignment. This allows for greater focus on the assignment’s commercial objectives and the agility to respond to the organisation’s changing global mobility needs .

International assignment objectives

From the outset of any successful assignment project, there should be clarity of objectives. Why as an organisation is the decision being made to invest in sending an employee to perform services in a different country?

International assignments can offer value in many areas, many of which typically present in the longer-term.

Internal knowledge transfer is a common assignment objective to address talent or skills shortages within overseas regions. Deploying key talent with specialist knowledge and skills to train and upskill local team members can help to resolve local labour or skill supply issues. The cost/benefit analysis can explore potential missed opportunities or delays resulting from shortages in the local talent market.

International assignments are also highly effective in building relationships and improving intercultural working. This could be relationships within an organisation, with local clients and intermediaries or local authorities. Face to face interaction remains highly effective and valuable in building influence on the ground and can offer significant potential for advantage over competitors.

Beyond relationships, value is also created in the knowledge gained by assignees working overseas, from insight into local customs and culture, improved language capability and a general understanding of how business is ‘done’ within the region and helping to adapt organisational protocol to suit the local environment. Combined with the assignee’s existing market and organisational knowledge, they can offer a global perspective with local details, bringing considerable potential to build competitive differentiation.

With clarity of objective, you can then consider whether an international assignment is the most appropriate solution . Is it possible to hire or promote locally? Would multiple, shorter trips be as effective in performance terms but with lower cost implications? International assignments demand significant investment and it will be important to assess cost projections against expected return and value to the organisation.

International assignment structures

As well as clarity of objectives, a successful international assignment also requires clarity of contractual terms, both to manage the expectations and understanding of the assignee, and also for the mobility team to identify support needs and potential risks.

Now more than ever, organisations are developing portfolios of mobility programmes to enable an agile approach to global mobility that responds to the organisation’s changing needs for international personnel mobility. Assignments come in increasingly different shapes and sizes, from permanent relocations or temporary exchanges, secondments or transfers to a different region or to a different organisation.

While organisations demand greater flexibility and agility from their global mobility programmes, underpinning the activity should be an appropriate assignment structure with a supporting contractual agreement that enables compliance with regulatory and legal duties.

When considering which structure to adopt, organisations will need to consider a range of factors including the type of assignment and the relevant environmental context such as regulatory, immigration, employment law, tax, pension implications.

For international assignments, where the employee is moving from the home country employer to a host country employer, the employer could consider a number of assignment structures, including:

• The employee continues to be employed solely by the home employer.
• The employment contract with the home employer is suspended for the duration of the assignment while the employee enters into a new employment contract with the host employer.
• The employment contract with the home employer is terminated with a promise of re-employment at the end of the assignment while the employee enters into a new employment contract with the host employer.
• The employment contract with the home employer is suspended and the employee enters into a contract with an international assignment company (IAC) within the employer group
• The employment contract with the home employer is suspended and the employee enters into a contract with both an IAC and the host country employer.
• The employee remains resident in the home country and works in a host country under a commuter assignment.

Each type of assignment structure offers advantages and disadvantages which should be considered in light of the individual assignment. For example:

• Do employment laws in the host country require the assignee to be employed by a local entity?
• Would the assignee be agreeable to ending their home country contract and starting a new agreement with a new entity in the host country?
• Are there terms in the home country contract that would need protecting in any new agreement, such as restrictive covenants?
• Which jurisdiction would prevail, the host or home country?
• How would local laws interpret a situation where there is no contract of employment with the employer in the host country?
• Issues such as income and corporate tax, pension and employment rights and responsibilities will need to be identified and assessed against the specific assignment objectives and budget and the assignee profile and circumstances.

Employment law

Employment law implications come hand-in-hand with selecting an appropriate assignment structure.

Home-country employment contracts for employees on assignment from the UK to an overseas jurisdiction should generally be interpreted under the laws of England and Wales. If a host country contract is used, there should be specific provision in the agreement to determine which jurisdiction would prevail. However, neither position is guaranteed, for example where issues of domicile arise which may supersede any contractual provisions. Again the need is to assess on an individual assignment basis.

As well as explicit contractual considerations, employers should also be aware of any statutory rights or implied terms under UK law that may continue to apply even in the host country.

Specific provisions may also need to be made to ensure confidentiality and appropriate handling of commercial and sensitive information. While this may be standard or expected for senior employees, those on assignment should also be considered for such terms relevant to the type of assignment and the commercial objectives of the project.

Immigration options

Successful international assignments will invariably require careful consideration of the immigration requirements. Governments across the globe are adopting increasingly protectionist stances towards economic migrants, as policies seek to favour domestic workers. This means business travellers and visa holders are now facing greater scrutiny when applying for work visas and when trying to gain entry at the border.

Visa options and criteria vary between countries and are subject to frequent change. Where permission is required for the assignee to work in the host country, it will be important to ensure the assignee applies for the most appropriate route to meet the assignment need, whether that is a work permit or a business visitor visa. The immigration requirements and options will be determined in most part by the rules of the home and host countries, the nationality of the assignee (and any of their dependants who will be joining them overseas) and the nature of the activities the assignee intends to perform during their time in the host country.

For example, a British citizen may be eligible to travel to the US to attend sales meetings and work conferences for up to 90 days  without having to apply for a visa but to conduct ‘gainful employment’ they would need to look at a specific work visa, such as the L-1 visa for intracompany  transfers.

A further factor will be the specific requirements of the visa or permit. Work visas, for example, may require sponsorship of the employee by a local entity with valid sponsor status. The application process for work visas are typically resource-intensive and in many cases will require the employer to provide compelling evidence as to why the role or work cannot be performed by a worker resident in the host country.

Preparation will, therefore, be critical, ensuring there is sufficient time to consider the relevant immigration options in light of local rules, and to then make the required application. Complications may also arise where the employee does not meet certain requirements under the local rules, for example if they have a past criminal conviction or negative immigration record. This will require careful handling and, depending on the host country’s rules, may require submission of a visa waiver to explain the issue and provide assurances of the employee’s eligibility by requesting a discretionary decision on the application.

Assignee remuneration

Relocation packages are typically the biggest expense associated with an international assignment. While cost control will remain a concern, it is important for employers to ensure they are offering packages that are competitive within the market and that the package will support both the commercial objective of the assignment and compliance with associated legal and tax risks.

Home-based packages remain common, including those which may be markedly above local market compensation levels, particularly in circumstanecs where the assignment need is business-critical.

It may be possible however to look at offering a lower package than the home-based option, by either localising the package to harmonise with host nation levels or to develop a ‘local-plus’ offering that maintains a degree of competition, but this can be challenging to apply consistently across all assignment types and locations.

Again, consideration should be given to the individual assignment and the assignee. Millennial workers for example are generally understood to value international experience and the remuneration package may not be their primary concern where the opportunity for overseas exposure is available.

For organisations with a substantial cohort of international assignees and travellers, it may be more appropriate to build a compensation scheme specifically for globally-mobile personnel.

Importantly, assignees who will remain under an employment contract in their home country may continue to be subject to home country payroll while on assignment. This will also enable pension and benefits to be offered in the same way through the home country. Taxation, however, raises more complex issues, for example where withholding rules apply in the host country. This will require specialist guidance to ensure tax liabilities in the home and host country are correctly managed and met withiin the appropriate timeframes.

Need assistance?

International assignments are demanding on the employer and the employee, but have become critical given the business imperatives to meet talent and development needs and achieve competitive advantage .

Employers should not lose sight of the need to understand the specific risks of each individual assignment, which increasingly demand bespoke solutions. While compliance , efficiencies and cost control should be underpinned by a solid global mobility infrastructure of policies, systems and procedures, the current shift is away from a uniform approach to assignment management, instead moving towards more agile management of each assignment, shaped by the specific assignment objectives, budget and risks in relation to immigration, tax, remuneration and employment law.

DavidsonMorris’ specialist global mobility consultants provide expert guidance to employers on all aspects of international assignments, from programme management and implementation to strategic consultancy to ensure value and return on the mobility investment. We understand the commercial drivers behind mobilising workers and the need to ensure compliance without impacting return on mobility investment.

We work with senior management teams, HR and mobility professionals to develop strategies that ensure effective compliance risk management while supporting delivery of the organisation’s global mobility objectives. For advice on making the most of international assignments, speak to us .

International Assignment FAQs

What is an international assignment?

An international assignment is when an employee is temporarily relocated to work in another country on behalf of their employer. These assignments can vary in length and purpose, ranging from short-term projects to long-term placements or even permanent moves.

How long do international assignments typically last?

The duration of an international assignment can vary greatly. They can be as short as a few months or extend to several years. It depends on the needs of the business and the specific goals of the assignment.

Do I need to provide cultural training for employees going on international assignments?

Cultural training is highly recommended. It helps employees adapt to the cultural nuances of the host country, improving their effectiveness and reducing the risk of culture shock. This training can also support better communication and integration within the local team.

What legal considerations should I be aware of for international assignments?

There are several legal considerations, including obtaining the correct work visas and permits, understanding employment laws in the host country, and ensuring compliance with both UK and local regulations. It’s crucial to consult legal experts to avoid any pitfalls.

How can I support employees and their families during an international assignment?

Supporting employees and their families involves providing relocation assistance, helping with accommodation and schooling, offering language courses, and ensuring access to healthcare. Regular check-ins and a clear repatriation plan also help maintain their well-being.

What is the process for repatriating employees after an international assignment?

Repatriation involves planning for the employee’s return to the UK, both in terms of logistics and reintegration into the workplace. It includes arranging their move back, addressing any reverse culture shock, and ensuring they have a clear role and support upon their return.

How can I measure the success of an international assignment?

Success can be measured through various key performance indicators (KPIs) such as the achievement of business objectives, employee satisfaction, skill development, and the impact on the company’s global operations. Regular reviews and feedback from the employee and host team are also essential.

What risks are associated with international assignments?

Risks include geopolitical instability, health issues, and the potential for the assignment to fail if the employee cannot adapt. Mitigating these risks involves thorough planning, offering support systems, and having contingency plans in place.

Is it necessary to have a contingency plan for international assignments?

Contingency planning is vital to address any unexpected issues that may arise during an international assignment. This includes plans for emergency evacuation, alternative work arrangements, and ensuring continuous support for the employee and their family in case of unforeseen events.

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.

She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.

Anne is an active public speaker, immigration commentator , and immigration policy contributor and regularly hosts training sessions for employers and HR professionals

• Anne Morris https://www.davidsonmorris.com/author/anne/ Home Office Launches Passenger Helpline for eVisas
• Anne Morris https://www.davidsonmorris.com/author/anne/ Implied Terms in Employment Contracts Explained
• Anne Morris https://www.davidsonmorris.com/author/anne/ Annualised Hours: Benefits, Challenges & Best Practices
• Anne Morris https://www.davidsonmorris.com/author/anne/ Home Office Visa Types & Application Guide

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility .

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners , we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

Read more about DavidsonMorris here . 

Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.

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