HRMT 427 (Week 4 Case)
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Week 4 Case Study - Case 8.1 Working in a Sheltered Enclave in Shanghai, China
Maylyn Castro
American Public University HRMT427 International Human Resource Management
2
Week 4 Case Study - Case 8.1 Working in a Sheltered Enclave in Shanghai, China
Case Study Background Information:
In this case, David Smith, an electrical engineer working for an MNC (Multinational
companies) in Detroit, reluctantly accepts an expatriate assignment in China, driven by his
company's need for managerial talent and the promise of career advancement. Despite his initial
reservations and limited knowledge of China, David's family relocates to Shanghai, where they
live in an exclusive enclave reminiscent of American suburbia. This enclave offers a
Westernized lifestyle, shielding them from many of the challenges of adapting to Chinese
culture. However, as time passes, David begins to question the isolation of this enclave from the
broader Chinese community and markets he is meant to learn about, prompting introspection
about the nature of his expatriate experience.
What are the potential reasons why David’s company would desire to send its own home
country expatriate instead of using a local Chinese manager or third-country national?
David's company may have several reasons for choosing to send its own home country
expatriate, like David, to China instead of relying on a local Chinese manager or a third-country
national. These reasons stem from the complexities of international business operations, talent
scarcity, and the desire to ensure effective management and knowledge transfer in a foreign
environment.
3
Firstly, cultural familiarity and corporate values can play a crucial role. Sending an
expatriate from the home country ensures alignment with the company's culture, policies, and
practices, thereby maintaining consistency and enhancing communication between headquarters
and the subsidiary. This helps in upholding the company's identity and core values in a foreign
market with potentially different business norms.
Secondly, certain technical expertise and knowledge specific to the company might be
required for the assignment. Expatriates often possess skills and insights gained from working
within the organization for an extended period. This knowledge can be critical for setting up
operations, managing new ventures, and ensuring smooth knowledge transfer to local employees.
In contrast, local Chinese managers or third-country nationals might lack the deep understanding
of the company's internal workings.
Moreover, language barriers and cultural nuances can present challenges in international
business. An expatriate from the home country can mitigate these challenges, ensuring effective
communication and minimizing misunderstandings. This is particularly important for an
assignment as crucial as setting up a new factory and training local managers. (Chen, 2019)
Lastly, the company's long-term strategic goals might factor in. By sending an expatriate
like David to China, the company can groom him for higher-level positions in the organization.
This aligns with the company's commitment to globalization and enables the development of a
global talent pool.
In conclusion, David's company's decision to send its own home country expatriate
reflects the need for seamless knowledge transfer, cultural alignment, technical expertise, and
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potential leadership development. These factors collectively contribute to the company's efforts
to establish a strong presence in a foreign market like China while maintaining its corporate
identity and strategic goals.
Can you identify the family issues facing David’s family?
David's family faces significant challenges and family issues as they contemplate David's
expatriate assignment in China. These concerns are multi-faceted and encompass both practical
and emotional considerations:
Career Sacrifice for Linda:
David's wife, Linda, is an accountant with a decent income in their
home country. However, accepting the expatriate assignment means that Linda would have to
quit her job. This decision forces Linda to make a sacrifice in her own career for the sake of
David's professional advancement. This creates a dilemma for the couple as they navigate the
complexities of work-life balance and financial stability.
Educational Transition for Christopher:
The couple's son, Christopher, is a second-grader at
the time of their relocation. Finding a suitable and high-quality private school for Christopher in
China becomes a critical concern. Adapting to a new education system, curriculum, and
potentially a language barrier presents challenges for Christopher's educational continuity and
well-being.
Cultural and Social Adjustment: Moving to a foreign country with a vastly different culture
can be emotionally and socially challenging for the entire family. The cultural adjustment
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