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International and Comparative Human Resource Management

Assignment II

Student name : Rangani Shanika Weerasinghe

UOB ID : 2215631
Unit code : SHR081-6
Word count : 3751
Submission deadline : 08.09.2023
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Executive summery

Today, most MNCs in the world try to expand their businesses worldwide to increase
their profit and reputation. As a result of that, MNCs launch their expatriate
assignments at their host country companies. When they do that assignment, they
have to select the right person to expatriate. Here we are going to discuss how to
manage expatriate family and company-front challenges and what happens if MNCs
can’t manage the expatriate. Because a large number of international assignments
have failed, their management issues

According to the case of Yeong-jin Lee, here we are going to analyze the challenges
South Korean expatriates faced in India. Lee faced many challenges in India on the
family front and the work front. Also, his wife, Soo Kyong, faced many challenges
with their children. Also, MNCs have to ensure the selection,training, adjustment,
and completion of expatriates. Here we are going to critically review how MNCs can
do that.

Yeong-jin encounters linguistic and cultural difficulties in India due to the widespread
usage of regional languages and the potential language barriers among the primary
workforce. They need to look for a new school for their children and make
arrangements for their future education. Soo Kyong struggles to balance her family
life and culture, which includes regulating her eating habits and learning to eat like
an Indian. Despite difficulties in putting choices into practice, Yeong-jin's job requires
a balance between work and family, and he is required to submit decisions to the
home office. Here we going to critically analyze those problems.
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Content
Executive summery……………………………………………………………………………………………02
1. Introduction……………………………………………………………………………………….…………04
2. What are the challenges South Korean expatriate faced in India……….…………05
2.1 Language issues
2.2 Cultural issues
2.3 Children’s academic and social adjustment
2.4 Family front issues
2.5 Work life balance
3. Cultural review of the selection criteria of expatriate………………………….………08
3.1 Technical ability
3.2 Cross-cultural suitability
3.3 Family requirements
3.4 Host country requirements
3.5 MNE requirements
3.6 Language requirements
4. Critical review of training of the expatriate…………………………………….…………12
5. Critical review of the adjustment of the expatriate……………………….………….14
6. Conclusion……………………………………………………………………………………….……….15
7. Recommendation…………………………………………………………………………..…………16
8. Reference………………………………………………………………………………………..……….17
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1.0 Introduction
Total foreign direct investment in India increased by 10 percent from 2021 to 2022.
The value of impressive is from 44.7 billion dollars to 49.3 billion dollars. (World
Investment Report 2023) Mauritius, Singapore, the USA, the Netherlands, Japan, the
UK, Germany, and the UAE are the main countries investing in India. The main
investment sectors are the service sector, computer software and hardware,
construction, telecommunication, trade, automobile industry, and chemicals.
Vodafone, Mercedes-Benz, LG, Microsoft, IBM, Nestle, Coca-Cola, Toyota, Unilever,
Amazon, and Samsung are some of the main foreign companies established in India.
At present, South Korea is the 13th largest FDI source in India. They invested 4.97
billion dollars from April 2000 to June 2021. (Indian briefing: Dezan Shira and
Associates) In this competitive situation, South Korea has to manage its expatriates
to protect the market in India.
According to the case study of Yeong-jin Lee, who was promoted to senior
operations manager of the Korean MNC’s host office in India, He accepted the three-
year assignment in India, and Lee’s wife quit her teaching job and prepared to go to
India with children. They were concerned about children’s academic and social
adjustment issues in Korea. Lee’s wife thinks about language and food challenges.
She also considers whether she feels isolated in India. On the work front, Lee was
quite stressed about how to work with another national with a different cultural and
linguistic background. He has to complete the project on time and report to his
home office.
South Korean MNCs have to select the correct expatriate who can manage those
challenges well. Here, we are going to critically review the challenges faced by Lee,
give recommendations for those challenges, and review how MNCs select the best
expatriates.In the second section of this report, we discuss the challenges faced in
India by South Korean expatriates. In the third paragraph, we discuss the selection
criteria of an expatriate with respect to Lee’s case. We are talking about technical
ability, cross-cultural suitability, language issues, MNE requirements, family
requirements,etc. Then there is a critical review about how to train an expatriate
before and after expatriation. Then how to adjust the expatriate and family, at last
conclusion and recommendation are herewith.
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2.0 What are the challenges South Korean expatriate face in India

2.1 Language issues

India is a multi-ethnic, multi-cultural, multilingual, multi-religious, and multi-caste

society. (Panda & Gupta, 2004) There are 29 different recorded languages in India
spoken by over 1 million native speakers. This language diversity is totally different
from Korean language diversity. In Korea, they speak a common language, and the
number of foreigners in Korea is only about 2% of the 50 million people in the
country. 50% of these 2% also have Korean descent and come from Chinese
nationals. (Chosunilbo 2009)

In the case of Lee, he has to work with the different languages in India. But before
that assignment, he worked only with South Korean nationals. He is not pre-
prepared to work with people from other linguistic backgrounds.

2.2 Cultural issues

Although subtle or distinct cultures can have a significant impact on business abroad,
(Budhwar and Sparrow, 2002) According to Hofsted’s index, India has a very complex
culture. We can see both collectivistic and individualistic values in India. On the
family front, they are collectivistic and individualistic in their interests and needs.
(Sinha, 2004; Varma et al., 2006).

Korea is recognized as a Confucian cluster country and is characterized by social

collectivity based on networks and trust. But Indians are not highly collectivistic.
According to these cultural issues between the two countries, Lee has to face some
communication issues when dealing with host country employees, buyers, and
suppliers. This communication issue has more effect in the early stages of the
company’s internationalization process. But Lee’s company has been in India since
2000, and sometimes he can manage these problems with colleagues in there.(Shen
and Edwards, 2004)
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2.3 Childer’s academic and social adjustment

Lee and his family have already decided to go to India with their children. Yeong-jin
and Soo Kyong are both satisfied with the Indian education system, and there is a
significant foreigner’s quota in the local education system. So they think there is no
issue with getting admission to a new school. But they think it may take some time to
make them new friends and adjust to the new school curriculum because of
communication and language issues.

But the matter is that when they repatriate to Korea, they have to re-enter the
children into the Korean education system. Because the assignment in India took
only three years. In Korea, from the first year of high school, students prepare to
enter the university. Sometimes expatriates have to send their children back home
at their own expense for preparatory work for admission to a Korean university.
However, in India, English is widely spoken. So it may be helpful to reduce those
issues to some extent.

2.4 Family front issues

Soo Kyong left her teaching job in South Korea, and she had no regrets about it. The
former provides financial support for the family's and children’s education. So she
would be a housewife in India. But she feels nervous about her personal
adjustments. Because Lee will be busy with his office work every time and can’t get
support for family matters. Soo Kyong has to support the children's education and
balance the language and food challenges. She thinks she will feel isolated in India
without any friends or family members.

The English language is widely used in both countries. So there will be no big issue
for Kyong when she makes new friends. But there are some differences between
Indian and Korean food styles. Indian food uses many spices and herbs. Korean
ingredients include kimchi and soy sauce. Indian foods are heavily influenced by their
religious culture, which has shaped their use of vegetarianism and non-
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vegetarianism. Korean foods have shaped the use of meat and traditional etiquette
in meals. So she has to give some try to fine-tune ingredients to prepare meals.

2.5 Work life balance

Yeong-jin encounters significant work-life balance challenges in India. Because he

had a big responsibility as a senior operations manager. But he was quite satisfied
with his new job title, managerial status, and increased responsibilities. But he has to
work hard for a successful target on time and show his performance. With that work,
he would have to involve family matters such as finding a new home and a new
school for children. (Makela and Suutar, 2011) According to the OECD report, Korean
employees work 2193 hours per year. That is the highest rate. So Yeong-jin has to
manage his time between office work and family work and discuss it with his wife.
Although he has to think about his wife’s anxiety and depression, Because it is
effective directly for the expatriate’s satisfaction. (Vander Zee, Ali, and Salome,
2005)

Yeong-jin’s home office still considers him a middle-level manager and gives
centralized directives from headquarters. So he has some issues when he makes
decisions in India. He hasn't had the freedom to implement his own decision without
informing and getting the approval of headquarters.

Nevertheless, the job title of the expatriate in the home office was not changed
when he came back to the home country. So there may be a different salary after
international expatriation. Then, after finishing the assignment, they have to manage
the cost of living for their salary. However, the home country job position is lower
than the Indian job position of the Lee. So he will feel uncomfortable when he
returns to the home office.

Sometimes when Lee is working in India, he may not get the expected support from
his home office with his increased responsibilities. So there are some issues about
job security and performance.

3.0 critical review of the selection criteria of expatriate

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Most international assignments fail because the right person is not chosen to
expatriate. There are two-way processes to select the candidates: individual and
organizational. Both are relative to each other. Following review based on that
criteria of selection,

3.1 Technical ability

Technical ability is an initial requirement for candidates. Most MNCs base their
selection on technical ability and managerial skills. MNCs can evaluate the
expatriate's ability by studying his or her past and present superiors. There is a
problem: if expatriate past performance is little or bearing, how can he perform the
foreign assignment?

In the case of Yeong-jin, he worked a long time as a mid-level operations manager in

the home office, and he might have the technical and managerial ability to succeed
in the Indian assignment.

3.2 Cross cultural suitability

The cultural environment is a very important factor for the success of the
international assignment. Intercultural competence is a valuable ability for an
expatriate. Soft skills are a precondition for cross-cultural suitability.

Soft skills - Soft skills are very important factors that must be considered as technical
and managerial skills. It includes language knowledge, past experience in
international relations, and personal characteristics. Most MNCs underestimate the
above factor and are not given even training to develop it. But it is very important to
communicate knowledge and technology with others.
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Intercultural competence - Intercultural competence means the ability to function

effectively in another culture. To function effectively in another culture, an
expatriate must have some qualities such as language ability, maturity, positive
thinking, adaptability, and emotional stability. The most important thing for actual
intercultural behavior is the ability dimension. Intercultural competence is more
relative to cultural intelligence.

Adjust with other culture - From person to person, it is different how they face
different cultures. This is the cause of failure for most expatriates. We can identify
four phases when the expatriate adjusts to the culture by referring to the U-Curve.

The first phase is called the honeymoon phase. When an expatriate adapts to a new
culture, he can sometimes feel both positive and negative emotions. In the second
phase, after the novelty wears off, homesickness sets in and a downswing may
commence. It may create a negative mindset in the expatriate. The third phase is a
critical time, and in that period, the important impact of success or failure is
determined. If expatriates pass this point of success, everything may be going well
with culture adjustment. In the last phase, expatriates begin to adjust to a new
environment, which is called a healthy recovery.

However, the U-Curve normative is not relevant for all people. It is different from
person to person in how they adjust to the culture. It may be caused by previous
international and personal factors. However, the adjustment of the expatriate may
come out as work adjustment, interaction adjustment, or general adjustment. (Black
and Mendenhall, 1991)

Yeong-jin had not worked before with other nationals except Koreans. Also not
mentioned in the case is that he has previously worked on international
assignments. So he has to make some effort to adjust to other nationals.
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3.3 Family requirements

Expatriate spouses and children’s interactions are very important and influence the
success of international assignments. Soo Kyong has to carry a heavy burden here.
She has a responsibility to settle the new house and is concerned about the
education of the children. Soo Kyong has quite a teaching job in Korea, and
sometimes she fails to find a new job in India according to their immigration
regulations. Nevertheless, she can feel isolated in a new country without family and
friends. So MNCs must think about expatriate family backgrounds and whether they
can manage well in a new country after assignment.

3.4 Host country requirement

MNCs usually try to demonstrate HCN by avoiding work permits and entry visas. But
in the case of Yeong-jin, he went to India as a PCN. Some countries make their
legislation easier to facilitate employment-related immigration. Generally, a work
permit is granted only to expatriates by the host country. Then some are faced with
cost-of-living problems, causing them to reject the offer of an international
assignment. Some host country locations where the MNC’s intentions are located
can be remote areas from major cities. In those rural areas, some expatriates find it
difficult to live with family members. There was a risk with minimum facilities, and
MNCs cannot take the risk of it. So MNCs think about that fact when they select an
expatriate.

3.5 MNE requirement

MNEs selection decision may depend on the situation of the MNE. They may
consider a significant number of expatriates among local staff. However, MNEs have
to use more PCN and TCN from the host countries. In an international joint venture,
there may be some limitations to selecting staff from the home country, which are
highly constrained by the negotiated agreement.
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3.6 Language requirement

Language ability is critically important for some expatriate positions. If expatriates

have knowledge about the host country's language, it is an extra advantage to adjust
to cross-cultural suitability. But expatriates must have knowledge about common
corporate language.

In the case of Yeong-jin, he worked only with Koreans, and they speak Korean. But in
India, there are about 29 languages used by people. But English is the common
corporate language for both countries. MNEs limited their selection because of a lack
of language ability. But the solution is common corporate language.

How to select an expatriate in practice

MNEs have been selected for their expatriate status considering the above-discussed
factors. But most of them are doing it in informal ways. Generally, they only consider
technical ability and managerial skills.

According to Harris and Brewster, the system of selecting expatriates is called the
"coffee machine" system. What happens is that managers start chatting around the
coffee machine and nominating expatriates. Then discuss his or her selection criteria
through casual conversation.

Formal selection procedure of expatriate

It is very important to select an expatriate in a formal way. MNCs can hold structured
interviews to select expatriates. Furthermore, recommendations and self-selection
are also important. But these two are ideal for short-term assignments, and
interviews have been recommended for long-term assignments. This interview must
be held by internationally experienced managers and international human resource
management specialists. They may identify the candidate's soft skills, ability to adjust
to other cultures, prior international experiences, intercultural context, and
personality. Sometimes candidates have to do some exercise, and management
makes the decision by evaluating them.
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In some advanced international assignments, after selecting the expatriate, they also
interview the spouse. It may help to reduce premature returns of expatriates and
the success of the assignment. Because the spouse of the expatriate plays a
significant role in international assignments,

4.0 critical review of training of the expatriate

After selecting the expatriate, the next most important step is training the
expatriate. It is very important to train and develop expatriate knowledge, skills, and
abilities in individuals. Some international MNCs are establishing their own
universities or schools to train their human capital because of that. As an example,
we can get Lufthansa School of Business. It must provide per-departure training to
the expatriate to prepare him and his family members for the assignment.

MNCs select their expatriates based on their technical and managerial abilities. So
the training must be mainly focused on developing cultural awareness. It may help
the employee adjust to the new country's culture and cope with unexpected events.
But most MNCs do not believe that cultural awareness training is necessary and
effective. So few MNCs offer training to their expatriates. But now there is some
trend toward giving cultural training to expatriates, spouses, and children.

Components of per-departure training

A. Cultural awareness programs

It is important to get an understanding of the host country's culture before assigning

So he can adapt easily and not feel isolated. According to Tung, there are five
categories of per-departure training.

i. Environmental briefing and cultural orientation

ii. Cultural assimilate
iii. Language training
iv. Sensitivity training
v. Field experience
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B. Preliminary visit

A preliminary visit is a unique technique to give an initial idea of the host country. It
may help to adjust expatriates and family to the assignment and create an interest in
it. MNCs typically provide four to six-day visits for all family members or only
expatriates with all expenses.

C. Language training

A desirable component of the per-departure program is language training. In there,

it is important to have knowledge about the English language as the world's business
language. Next, it is important to work with local employees and adjust to the host
country's culture. Then the lack of corporate language knowledge is a big
disadvantage when facilitating reporting and other control mechanisms. Most
foreign programs focus solely on developing corporate language, but it is also critical
to develop the host country's primary language.

These are the main components of per-departure training, and some other facts may
be considerable, as follows:

- providing information about practical assistant

-give a security briefing for satisfy about their health, safety and security
-training for the train host country nationals for the assignment

D. TCNs and HCNs are also important to provide training for the relevant
assignment.

In the case of Yeong-jin, there was no per-departure training given for the expatriate
or his family. He may have good technical and managerial abilities. But it must be
good if he had some training about language, culture, and other compulsory things.
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5.0 Cultural review of the adjustment of the expatriate

As an expatriate, it is very important to adjust to a new work culture and new ways
of living after completing the assignment. If it is not managed correctly, the MNCs
have to bear a big premature return cost and the risk of not finishing the assignment.
(Baker & Ivancevich (1971)

Cross cultural adjustments

There are five main components of the cross cultural adjustment as follows,
i. Per-departure training
There is significant value in cross-cultural training for cross-cultural adjustments, skill
development, and job performance. It is helpful to increase the total effectiveness of
the expatriate.

ii. previous international experience

Previous work experience of the expatriate was related to adjusting the new
assignment of the expatriate. But sometimes past experiences are not related to the
current assignment. At that time, it was not highly helpful to the adjustment.

iii. Organizational selection criteria

When MNCs select expatriates, they consider many criteria about expatriates. But
sometimes they only consider technical skills. As such, it is important to consider job-
related skills, language skills, and cross-cultural skills. It may cause the expatriate to
adjust to the new environment quickly.

iv. Individual skills

We can consider individual skills under three categories.
1. Self-dimension - maintain a good mental health, psychological well being, effective
stress management, self efficiency
2. Relationship dimension - skill to make a good relationship with other nationals.
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3. Perception dimension - cognitive ability to evaluate and understand the host

country environment

v. Non work factors

The expatriate and spouse might adjust to the new country's culture quickly. But
there are big differences in culture from country to country. So it is not easy to
adjust to them. Some international assignments fail because expatriates cannot
adjust to the new country's environment.

Domestic adjustment

The domestic adjustment mainly focused on socialization and work role adjustment.
Accurate expectations for facilitate adjustment are important anticipatory
adjustments before entering the new location. As examples, consider surprise and
sense-making, relocation, and socialization. Prior to entering, it is critical for MNCs to
understand the selection mechanisms and criteria. After the entry, the assignment
must be adjusted with job clarity, discretion, novelty, and conflict. Also with
organizational culture, novelty, and social support.

6.0 Conclusion

In conclusion, it is helpful to summarize the challenges faced by Korean expatriates

in India.

The main issue faced by Yeong-jin is the language problem in India. There are more
languages used in India as local languages. Indian primary labor may not know about
common business corporate language.

Another big issue facing India is cultural. Different cultures exist in India related to
religion and people's beliefs. Korea is a Confucian cultural country with few
differences from India.
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Academic and social adjustment are important factors for Yeong-jin and his wife.
They must find a new school for their children and think about the opportunities and
threats they face. Also, they might think about what the future plans are for their
children’s education after they finish their three-year assignment in India.

Soo Kyong had to face some cultural and family life-balancing issues. She quit her
teaching job, and she has to stay home every day and feel isolated. But she can help
her children with their education. Also, she has to manage the food styles. Indian
food styles are different from Korean styles, and she has to face some challenges to
adjust to them.

Yeong-jin would be busy with his work all day, and he would not have time to involve
family matters. He was not working with other nationals before that assignment, and
he may have made some attempts to get used to it. When he makes a decision, he
has to report it to the home office, and there are some issues with implementing his
decisions. But he must have the responsibility to finish the assignment and targets
on time and with accuracy.

7.0 Recommendation

There are some recommendations for challenges faced in India by South Korean
expatriates based on some research and theories.

In the case of Yeong-jin, he had not given any training to him or his family before the
assignment. It is very important to provide per-departure training for expatriates to
adjust to the new country's culture and work life.(Waxin M.F., and Panaccio, A.
(2005)

The MNC can get more advantages from the expatriate by considering his extra skills.
Most MNCs only consider technical and managerial skills. But there are more areas
that can be considerable when selecting an expatriate. As examples, language skills
and communication skills can be mentioned. Previous working experience with
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international assignments is an extra qualification for the expatriate.(Tung, R.L.

(1987)

If MNC can arrange a preliminary visit to the location of the assignment, the
expatriate can get an idea of what he has to do and how the country environment is.
But MNCs have to spend extra to arrange that visit.

MNC can provide some insurance for expatriates and their families to ensure their
safety, security, and health. It may give some comfort when expatriates live in a new
country.(Rao, A. (2012)

If the MNC can provide practical assistance to the expatriate from the host country,
it may be very easy to adjust the expatriate to the new environment. Because the
assistant has good general knowledge about the country's language, culture, and
working background.

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