Monday, November 4, 2019
What are the Key Reasons Why Traditional Expatriation Appointments and Essay
What are the Key Reasons Why Traditional Expatriation Appointments and Repatriation Often Fail What can MNCs Do about this - Essay Example In this regard, it is observed that most of the MNCs in the current globalized world is encountered with the high rate of the expatriates and repatriates failure. Such failure witnessed by the MNCs has reduced their capacity to sustain their business smoothly and profitably in the overseas market. At the same time, the increasing failure rate related to traditional expatriation appointments and repatriation has drawn urgent demand for resolving these challenges faced by the MNCs (Harzing, 1995). Ã Collings & et. al. (2007) asserted that staffing issues in the international context are complex and challenging. Despite the challenges associated with the staffing issues, it has been argued that MNCs are using traditional expatriation appointments on a frequent basis. Accordingly, myriad reasons have been propagated behind the use of traditional expatriation appointments. In this regard, one of the potential reasons has been associated with the rapidly growing demand for competent and experienced global managers which is accompanied by the reduced supply of the same. The other reasons include the desire of the parent company to acquire centralized decision making and control over the operations of the subsidiary located in the overseas market. Thoo (2013) has defined expatriate failure as Ã¢â¬Å"as the expatriateÃ¢â¬â¢s premature return to his or her home country prior to the completion of his or her actual assignment durationÃ¢â¬ . Accordingly, Thoo (2013) has identified multiple reasons that contribute towards expatriate failure.