Reasons for the failure of expatriate practices at nokia

Reasons for the failure of expatriate practices at Nokia 7

Introduction

Expatriate Practices at Coca Cola Company

Apart from this, the candidate must have strong cross-cultural sustainability as these have to work in a different national culture that they may not be familiar with, though it is hard to evaluate the cultural sustainability of an individual (EDOSSA, 2019). The practices followed by IHRM for expatriates include the development of the knowledge and skills to get their effective performance. These methods of development include their experiences working with the company, training programs, providing them with coaching, and different performance appraisal processes. Though the structure of the policies of Coca-Cola is the same throughout IHRM specific policies are added that are best suited as per their operating environment of the host country. The company also runs an International service program where they trained their human resources, and build a cadre of executives who can act as future senior managers and can be trained for international assignments. The company has a fair remuneration policy that is without discrimination, attracting immigration and develop the diverse mind, and the expatriates are paid as per the host country benchmark and help them to remain in the host country by providing them with a Cost-of-Living Allowance approach to avoid the premature return of these expatriates. The company prefers the Geocentric staffing approach where the company chose the managers based on their qualification and experience, not based on their nationality.

A rigorous selection procedure including an aptitude test, work sample test, and behavioral test is conducted for the selection of the candidate for an international assignment. The company's inclusion and diverse policy also help them in developing a team that can work worldwide. The expatriate's preparation and development program includes the orientation program that includes the training of expatriates on culture, language, and culture before going for the international assignment (Scheufele, 2017). There is a continual development training that is been provided after joining expatriates at the host country and the final one that is near completion training. This program is one of the most successful programs of the Coca Cola company. The expatriates are given a complete compensation package by the company to attract them to go to the host company and work for them in a different culture. The compensation package may include more salary, accommodation, transportation, flight tickets, insurance, and family transfer (Walker, 2020).

Challenges faced by Coca Cola Company

Reasons for the success of expatriate practices at Coca Cola Company

Right compensation package: One of the major reasons behind the success of the expatriate practices in Coca-Cola as they are able to provide the right compensation package to the candidate which is one of the major reasons behind the motivation of the employees(Black and Gregersen, 2012).
They are known for providing cross-cultural training: another reason behind the success is that they tend to provide cross-cultural training, as they believe that not knowing the cultural difference and ability to handle the new environment can create problems not only for them but also for the companies and the families. An employee sent abroad with family without any prior knowledge about the cultural difference between the host and home country can trigger a cultural choke(Chang, Gong and Peng, 2012). This can again lead to ineffective interaction or premature returning of the imply that incurred the cost to the company. That is why the company believes in providing cultural training to the employees, especially which have come for the long assignment.

Expatriate Practices at Nokia

Selection criteria

Preparing and orienting the selected

Nokia, is known for preparing and orienting there selected expatriate, as they believe the two major problems that come associated when preparing in training than for the international assignments are more complex compared to the domestic assignment as the expatriate not only have to adjust to the new job or a new role but also at the same time also have to adapt to a new culture and the second important task is since there is stress associated when it comes to foreign assignments which tend to fall on all the family members which again give rise to issues of a training program for this spouse as well as family, that is why Nokia have adopted preparation and training not only for the expatriate but also for the spouse or the family as they believe, they will be also exposed to the local culture.

Expatriates compensation

It has a good incentive program for the expatriates that can encourage and is served as a motivational factor for them to work on international assignments. The company gives more power to the expatriates for managing their performance appraisals in the host country (Bonache and Fernandez, 1997). Their policy depends on the location of the host country where the expatriates work, the task assigned, the job description and specification, the duration of the task, and other major factors.

Career planning

Challenges faced by Nokia

The second most important challenge that is faced by the company is that expatriates are considered to be very expensive, as it has been estimated that they cost around 3 or four times compared to the employment of the same individual in their home country. as they tend to receive their base salaries including the supplements for relocation allowances, cost of living, travel expenses as well as the education cost, this creates a challenge for the organization to manage them.
Besides that, another very important challenge which HR manager face is that they are unable to provide the support which is needed by the expatriate, especially when they are facing the problem of adapting to a new environment which creates another barrier for the organization to work efficiently(Miocevic and Zdravkovic, 2020).

Reasons for the failure of expatriate practices at Nokia

Conclusion

References

Bonache, J. and Fernandez, Z., 1997. Expatriate compensation and its link to the subsidiary strategic role: a theoretical analysis. The International Journal of Human Resource Management, 8(4), pp.457-475.

Chang, Y., Gong, Y. and Peng, M., 2012. Expatriate Knowledge Transfer, Subsidiary Absorptive Capacity, and Subsidiary Performance. Academy of Management Journal, 55(4), pp.927-948.

Luomalahti, L. (2019). LEADING MULTICULTURAL TEAM IN A FINNISH COMPANY – NOKIA. Jultika.oulu.fi. Retrieved 7 January 2021, from http://jultika.oulu.fi/files/nbnfioulu-201905282174.pdf.

Maisoni, H. (2019). Effect of Organizational Culture, Leadership and Compensation on Employee Engagement in Coca-cola Amatil Indonesia Central Sumatra. Atlantispress. Retrieved 7 January 2021, from https://www.atlantis-press.com/proceedings/piceeba2-18/125907955.

Sysinoro, V. (2017). Performance Management Practices for Self-initiated Expatriates. Osuva.uwasa.fi. Retrieved 7 January 2021, from https://osuva.uwasa.fi/handle/10024/5659.

Walker, E. (2020). Expatriate management HRM. Slideshare.net. Retrieved 7 January 2021, from https://www.slideshare.net/JaelynBai/expatriate-management-40222453.

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