Differentiation between inpatriation and expatriation: Factors of success and failure of inpatriation

Seminar paper from the year 2011 in the subject Business economics - Personnel and Organisation, grade: 1,5, European School of Business Reutlingen, language: English, abstract: Introduction In the globalized world the competition gets aggravated and multinational companies (MNCs) seek out for new practices to stay competitive. One solution is cognitive and cultural diversity, implemented by multicultural management teams. Nevertheless a prerequisite is that international human resource management (IHRM) and the strategic goals of the organization will be linked (Harvey, Speier, Novicevic 1999b). This is necessary for the development of a distinctive competency, which constitutes a competitive advantage through diversity. Diversity prevents groupthink and facilitates a repertoire of different strategic choices, which is crucial to stay competitive. To approach this goal, MNCs avail themselves of international assignments, meaning to require an employee (manager) to work abroad for a specific purpose. The different purposes of international assignments will be examined in chapter 2.3. There are two typical forms of international assignments: expatriation and inpatriation. This paper examines the inpatriation process, concerning: - the different assignee types - the differentiation between inpatriation and expatriation - the purpose of international assignments, especially inpatriation - the advantages of inpatriation compared to expatriation and vice versa - motives, expectations and challenges of inpatriation from different points of view - preparation by the inpatriate - cultural challenges (culture shock) and coping tips - preparation, assistance/support and training for the inpatriate and factors which have to be considered This paper will conclude what factors make the inpatriation successful, and what can lead to failure. [...]