International Human Resource Management

and Apple Inc.’s Experiences

In the recent past, there has been an increase in the number of multinational corporations operating in the
world. Such companies are heavily investing in the global market. A number of factors have influenced the
growth of these organizations. They include dynamics of international trade, amalgamation of the financial
markets, and human migration. Other factors include speedy movement of capital as a result of globalization.
All these factors have facilitated trade on the international arena. Human resource management entails the
activities carried out by organizations to effectively utilize their human resource. Consequently, effective
human resource management at the global level is a major determinant of success in international trade.
Human resource development at the international level has largely focused on the formulation of effective and
highly skilled workforce. By doing this, individual employees and the organization at large can realize their
ultimate goals of serving customers.

Apple Inc. is a competitive global company in the communications and electronics industry. It is a leading
designer, manufacturer, and marketer of communications and media devices. It is also involved in the
manufacture and distribution of digital music players and portable computers. The company has operations in
different parts of the world. It has an elaborate international human resource management system. According
to Avril and Magnini (2007), pre-departure training provides expatriates with the knowledge and skills
required to survive following their immediate arrival at their destined country of work. Essentially, employees
going to work in another country require information on various aspects of the host nation before they leave
home. Some of the things they need to know to include the culture and customs of the host country. They also
need to be aware of the language and dress code appropriate to the new environment. In addition, international
assignees need information on business etiquette in the new country (Avril & Magnini, 2007). Information on
verbal and non-verbal communication, taboos, rules, decision-making techniques, and business management
structures should be provided to international employees during pre-departure training.

Culture and customs of the new country. Training on the host country’s customs is essential in ensuring
that the expatriates adapt to the local culture. It is noted that business operations would be negatively affected
if the behavior patterns of the new employees conflicted with the cultural expectations in the host country. For
instance, a US citizen working for Apple Inc. may be deployed to Saudi Arabia. Such an employee should be
aware of how Saudi nationals regard alcohol. In addition, female employees would be expected to conform to
societal expectations with regard to their dress code.

Language. Language is an essential component of communication in international business. Expatriates and

in-patriates require more than just basic knowledge on the host country’s language for effective execution of
their assignments. In addition, they should be aware of non-verbal communication techniques. Such
awareness would facilitate communication in foreign countries. Business etiquette may vary between
countries. In some parts of the world, governments regulate business policies. For instance, such elements as
tax policies, power distance, and human resource management may differ from one country to the other (Katz
& Seifer, 1996).

An expatriate manager at Apple Inc. would be required to understand the variation of such policies. Failure to
comply with the new rules and regulations would most likely jeopardize the operations of the corporation in
the host market.

Business management structures and decision-making techniques. Different countries adopt different
approaches in relation to business structures and decision-making techniques. For instance, decision-making
in high-power distance cultures differs from that in low-power distance communities. As such, a manager
working for Apple’s branch in Korea should be aware of the best approach to adopt in directing employees.
The same applies to a German employee working in Africa, where decisions usually come from the top
management.

Rationale for Utilizing the Pre-Departure Training Components

Managers are expected to effectively handle employees from different cultural backgrounds. The ability of
such managers as far as the employees are concerned affects the profitability of the company. People from
different countries express their nationality and dress codes differently. The approach used by international
assignees when dealing with certain problems may also differ. Such issues as the need to interpret actions and
comments, predict behaviors, and resolve conflicts may arise. As a result, focusing on the various components
of pre-departure training would harmonize Apple’s operations with the reality in the host country.

Performance Assessment among Expatriates

Assessing the performance of expatriates is a major element in international human resource management.
The performance can be reviewed using a number of criteria. Such criteria include determining strategy
implementation and attainment of competitive advantage. According to Caligiuri (1997), there are three
criteria commonly used in evaluating expatriates. They include completion of foreign assignments,
performance on the foreign assignment, and cross-cultural adjustment. The criteria apply to all employees
irrespective of the operations of a particular organization.

Adjustment to foreign cultures also determines the success of the assignee (Caligiuri, 1997). The inability to
adjust to the host country means failure in the assignment. Successful adjustment indicates that the employee
is psychologically comfortable working and living in the new country. Adjusted assignees are comfortable
with the local culture. On their part, maladjusted employees find it hard to survive in the new environment.
The failed employees may prematurely terminate their assignments (Suutari & Brewster, 2000). Performance
on the foreign assignment. Multinational corporations expect their employees to adjust culturally and remain
in their foreign posts. In addition, the expatriates are expected to successfully execute their assignments.
According to Caligiuri (1997), a large number of maladjusted foreign employees fail to achieve the envisaged
outcomes in their work. There are various measures of performance with regards to foreign assignments. They
include establishing working relationships with the locals. Others include transfer of information and the
language and cultural proficiency of the foreign employee (Caligiuri, 1997). The measures are in relation to
the benefits of expatriates to the multinational corporation.

Recruitment and Selection Strategy for Apple Inc.’s International Assignments

According to Suutari and Brewster (2000), international assignments entail three discrete phases. The first is
the pre-assignment stage. It involves the selection and preparation of employees for deployment. The second
is the ‘actual’ assignment. It involves the ‘actual’ stay of the expatriate in the new country. The last is the
post-assignment stage. It is also commonly known as repatriation. Recruitment and selection of expatriates is
a multifaceted process. It takes into account both personal characteristics and interpersonal skills. Caligiuri
(1997) postulates that most international organizations use knowledge of company systems and technical
competencies in the selection process. The strategy is the most suitable recruitment and selection criteria for
Apple Inc. It is noted that measuring relevant cross-cultural and interpersonal abilities is a difficult task for
many organizations. In addition, most expatriate postings rely on personal recommendations. Such
recommendations are derived from either line managers or specialist personnel (Suutari & Brewster, 2000).
As such, Apple should rely on the proposed recruitment and selection policy. The strategy would reduce the
chances of failure in the assigned job.

Staffing Alternatives for Foreign Operations

There are several approaches used in resolving the issue of human resources in relation to international
assignments. The strategies include ethnocentric and polycentric staffing approaches. Others are re-geocentric
and geocentric staffing strategies (Dowling, Welch & Schuler, 2004). The ethnocentric approach involves
filling all the key positions in the organization with local experts. The polycentric approach, on the other hand,
proposes the use of host country’s nationals in managing subsidiaries. However, in this approach, key
positions in the corporation’s headquarters are held by nationals of the parent country (Dowling et al., 2004).
The re-geocentric approach is a mixed staffing strategy. Here, executives are transferred between regions.
Operations of the company are divided according to geographical regions. Apple should adopt the geocentric
policy to address its staffing needs. The approach disregards the nationality and location of the candidate. It is
appropriate for Apple Inc. since the corporation has a vast international experience and a global structure that
is well developed.

Importance of a High Quality Mentoring System for International Assignees

Mentorship refers to a form of developmental relationship. In this case, an experienced employed assists less
experienced members of staff in performing their tasks. The mentors can function as guides in the exploration
of career interests. They provide support to international assignees deployed by multinational organizations.
Mentoring systems for expatriates can be formal or informal. The former describes established procedures and
specified targets. The latter, on the other hand, is initiated whenever the assignees seek advice from their
superiors or from external professionals. A high quality mentoring system is very important to any
multinational organization. It determines the success or failure of foreign employees. In most cases, the
programs provide the management with an opportunity to support the assignees.

The support is especially important during the departure or repatriation phases of the assignment. As such, the
programs are powerful means of strategically retaining valuable employees with international experience.
High-quality mentoring programs also help employees to adjust to their new environment. It improves their
productivity and overall performance in their new posts. In addition, the programs provide continuous
communication on changes in the company and the state of affairs back at home. As a result, the expatriates
can effectively cope with transfers, expatriation, and repatriation. The current global economic meltdown has
led to cost constraints in most organizations. As such, it is important for organizations to have the right people
at the right place. High quality mentorship programs are very essential in the management of talent and
employees. To this end, Apple Inc. employees should always have a mentor irrespective of their position in
the foreign country. The mentors should supervise the assignee with a view to support their development.
They should assist the new employee for a given period of time. Prior to the assignment, the employee must
undergo an extensive pre-departure training. The training will help them settle down in the host country.

Measuring Return on Investment in International Assignments

Every business undertaking requires a mechanism to determine its subsequent return on investment. The same
applies to international assignments in multinational organizations. The companies should analyse the
profitability or importance of international assignments to the parent organization. Studies conducted with the
aim of measuring return on investment with regard to international human resource have focused on
numerical results of foreign deployments. In most cases, the costs and returns associated with the investment
are used to determine its profitability (Caligiuri, 1997).

To determine Apple Inc.’s return on investment, one should take into consideration a number of factors. The
various aspects of international human resou\rce management would help in assessing the profitability of
foreign employees. The factors include identification of the assignment’s purposes, cross-cultural training
costs (Dowling et al., 2004), and compensation. In addition, performance management and repatriation
outcomes should be factored in. Calculation of return on investment would eventually be ascertained by
analyzing the financial and non-financial costs and benefits of the venture. The costs and benefits are then
linked to the expenditure incurred with regards to the assignment.
Questions

1. What challenges/difficulties company as well as employee may face in case of overseas assignment.

2. In the context of the above case of Apple Inc., highlight the significance of Pre-Departure Training for
an employee going to work in the other country? What significant aspects Apple Inc. focus on, in the
Pre-Departure Training?

3. Discuss the strategies adopted by Apple Inc. while selecting the employees for international
assignments? Give your opinion about the same and also suggest other strategies co. may adopt in
order to ensure successful completion of international assignment.

4. Comment on Apple’s staffing alternatives. Discuss the pros and cons of every option adopted by
Apple Inc.

5. With reference to the above case, discuss the major learnings / takeaways in terms of International
Human Resource Management

- The goal of international HRM is to enhance how multinational businesses (MNCs) utilize their
HR resources to gain a competitive edge on both a local and international level. To best utilize
their HR resource for business success, MNCs must be identified and understood in relation to
how they manage their regionally dispersed workforce.

- The focus of the company's international human resources strategy should be on how
globalisation can enhance hiring procedures.

- Your human resource management strategy should take into account both the legal and
compliance ramifications of international expansion and local customs to ensure that pay and
benefits are equitable.

- The development of international human resources strategies must consider both local and global
aspects of training and development.

Introduction:
The case study revolves around the Apple company’s international human resource management system.
The case mentions the factors to consider when an employee goes to another country for an
assignment (expatriate). Hence, there are factors like cultural barriers, language, dress code, etc. The
company also mentions how the company’s international human resource manages the entire process
of expatriation and repatriation.