Legal And Ethical Considerations

Management Essay
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The purpose of this report is to identify and evaluate the human resource
management issues that affect the decisions on recruitment and selection, training
and development, performance management and compensation criteria for the
expatriates of the NutrientWater Company, Australia during the pre-departure to the
host nation India and the set-up phase of the subsidiary in Mumbai, India. The key
recommendations that the organization needs to consider adopting, for the
expatriates before the pre-departure to the host country.

Recruitment and Selection It is recommended that NutrientWater evaluates the technical competence of the
expatriate with the help of supervisor's work and reports, interviews, work history
and performance in previous and current positions, reference checking and
qualification during the selection process.
It is recommended that NutrientWater evaluates the interpersonal skills of the
prospective expatriate with the help of psychological assessment and a residential
training programme during the selection process.
It is recommended that NutrientWater analyses the domestic circumstances of the
expatriates including personal interviews with the spouse regarding the suitability of
posting, partner's career, children's circumstances and overall family circumstances.

Training and Development It is recommended that the NutrientWater expatriates should be given six important
types of cross cultural activities comprising of environmental briefings, cultural
orientation, cultural assimilators, language training, sensitivity training, job-related
training, management training, field experience training, and communication skills
training and on-the-job training.

It is recommended that the NutrientWater expatriates comply with the five-point

questionnaire items which are based on the instructor's experiential and conceptual
learning method. The fit between the instructors teaching methods and expatriates
learning style shall serve as a moderating effect for the influence of expatriate
training on training performance.
It is recommended that the NutrientWater expatriates will be given the training of
cross-cultural difference based on five cultural factors that are universal for a nation
with the help of five-point questionnaire items. These values include Power Distance
(PDI), Uncertainty Avoidance (UAI), Individualism (IDV), Masculinity (MI) and
Confucian dynamic (LOTI).

Performance Management It is recommended that NutrientWater provides expatriates with enough financial
support to maintain the expatriates standard of living in the host country during the
set-up phase of the subsidiary, followed by other key benefits such as assistance in
housing relocation, membership in social clubs, rest and relaxation vacation leave,
assisting with schooling for children, and spousal employment and also to maintain
communication with the expatriates.
It is recommended that NutrientWater complies with high-quality LMX relationship
and that the expatriate should receive information and assistance that will serve as a
supportive aid in the host nation and that it should be highly characterized by mutual
loyalty, liking, professional respect and contributory behaviour towards meeting
goals.
It is recommended that the spousal support will positively affect the expatriates work
adjustment and performance and so with respect to work adjustment the spouse
shall provide support to the expatriate by assisting him/her with relocation, and
freeing up time for the expatriate to focus on work and on the other hand, the spouse
can serve as a "cheerleader" to the expatriate and reiterate his/her beliefs concerning
work related abilities.

Compensation Criteria It is recommended that the NutrientWater uses the home-country policy approach to
compensate the expatriates for their work in the overseas nation and by using this
pay system the organization intends to enable the expatriates to maintain a lifestyle
equivalent to that which they enjoy in the home country.

It is recommended that the NutrientWater designs an effective expatriate

compensation package, which means, that the job-satisfaction of the expatriate
should be directly related to the compensation package rewarded to him/her during
the initial set-up of the subsidiary in India.
It is recommended that the NutrientWater signs a contract with full details regarding
the compensation package design with the expatriates and do not comply on verbal
agreements to avoid repatriation or expatriate failure in the host nation.

Leadership and Motivational Systems It is recommended that the CEO expatriate adapt transformational leadership style
because of the transfer to host nation with different business ethics and cultural
diversity, which will help him achieve the goals of the initial success of the set-up
phase.
It is recommended that the CEO expatriate adapt a three-way expectancy model
approach to contribute towards ethical behaviour of the employees, motivation and
to shape up the employee's problem solving approach

Legal and Ethical Considerations It is recommended that CEO expatriate, for the successful operation of the
management in the host nation, adopt a professional code of conduct under the
umbrella of ethics which will clarify both the trainees and old HR professionals, their
values by which objectives and activities of the HRM function are to be carried out
and also it will serve as a guide to HR professionals in matters of conflict of interests.
It is recommended that the HRM professionals are given training in moral reasoning
to internalize ethical standards and to develop necessary skills to translate written
standards into practices.
Table of Contents
INTRODUCTION 4
COMPANY BACKGROUND 6
COMPARISON BETWEEN THE PCN AND HCN 7
IHRM PRACTICES 9

LEADERSHIP AND MOTIVATIONAL SYSTEMS 12

LEGAL AND ETHICAL CONISDERATION 13
CONCLUSION 13
RECOMMENDATIONS 14
Bibliography 18
INTRODUCTION
It is the intention of this report to evaluate Nutrient waters' current Human resource
management system as to how effective it is in recognising employees' skills and
competencies and identifying skill gaps and developing Human resource strategies to
expand to the host nation India and Mumbai as the target market.

AIMS AND SCOPE

The purpose of this report is to analyse and evaluate the current international human
resource practices and to make an effective human resource strategy for the
NutrientWater expatriates keeping in context the cultural diversity, the reason for
the choice of the host-nation and the form of organization structure in the host
nation, during the set-up phase of the subsidiary in India. The scope of this report is
to examine the key issues in recruitment and selection, training and development,
performance management and compensation criteria the expatriates and to provide
suitable recommendations after careful consideration in each criteria to contribute
towards the overall success of the expatriates prior to the pre-departure to the host
nation.

METHODOLGY
In undertaking this research there have been used various methods of data
collection, including academic journals of international human resource
management of cultural theorists, cultural surveys and trends of beverage
consumption as well as supporting literature of India's economic profile, accustomed
Indian business practices, Organization's background, the comparison between the
parent country nationals and the host country nationals with the help of world fact

book and Hofstedes model, and e-mail communication with Kaitlin Rimington,
Marketing Assistant of Nutrient Water.

LIMITATIONS
In undertaking this research there have been limitations that have been highlighted
and the important ones are the lack of information on Nutrient Water, The research
is based on second hand data methodology and the lack of published literature on the
international human resource management in terms of limited concepts and models
that have been developed by the author.

ASSUMPTIONS
It is assumed that in the first year of the set-up phase of the business in the host
nation India, the three members from the parent company will be sent to the host
nation by the date 1st of January 2011. It is assumed that CEO expatriate of Nutrient
Water, along with one marketing manager expatriate, one executive expatriate from
the finance department and two employees' from the production department will
take the initiative during the set-up phase of the subsidiary of NutrientWater in
India. It is assumed that during the growth phase, the subsidiary shall staff the hostcountry nationals to further expand in its cost-effective operations and that the
company recruits 20-25 staff members and accordingly follow the recommendations
highlighted in the IHRM practices below.
COMPANY BACKGROUND
In 2004, Luke Marget, Brad Wilson and Matt Denis at the age of 20 were pursuing
individual careers in finance and law but their common interest in health sparked a
serious review of products that could support their active lifestyles (Rimington,
Kaitlin, 2010). They recognized that Australians are relying on convenient foods and
beverages to aid their increasingly active and demanding lifestyles. They also
recognized that there was a significant gap in the Australian beverage market that
was dominated by the popular growth of bottled water at one end of the market and
sports drinks and energy drinks at the other. Nutrient Water also recognized that
Australian market lacked a beverage which should suit the modern health conscious
consumer who seeks a nutritional enhancement which is suitable for their everyday
needs rather than just for when playing sport. It pioneered the enhanced water
category in Australia, now estimated to generate $100m in retail sales (and growing)
which is rivalled between the independent Nutrient Water and significantly larger

multi-nationals in Coca-Cola and Schweppes (Rimington, Kaitlin, 2010). The initial

trial in Melbourne was a huge success for nutrient water and it realized that there are
many distributors who focus on smaller regions of the country and hence in order to
grow and develop a national footprint, the distributors needed to be approached oneby-one. A major breakthrough came when a major distributor in Sydney was secured
known as Socrates Distributors. For many distributors, Nutrient Water soon became
the largest selling product. The distribution since then has grown to over 15,000
retail accounts spread across Australia from Darwin to Port Macquarie,
Warrnambool to Bundaburg. In addition, major retail chains like 7 Eleven, Coles and
Caltex came on board and are now significant trading partners. It is also available
through Virgin Blue and Jetstar airlines (Rimington, Kaitlin, 2010). They currently
have thirty full-time staff and twenty-four contractors and the number of staff is
expected to grow as they expand more and capture the market. The fact that the
entire NutrientWater team fits right in the middle of the NutrientWater target
market (being healthy, active 18-35 year olds) means they know what they are talking
about when selling the brand. They believe strongly that the product has worked well
because their consumers can relate to the product and brand from every perspective
(Rimington, Kaitlin, 2010). There are currently seven functional variants in the
NutrientWater range including Antioxidant, Energy, Immunity, Multi Vitamin,
Endurance, Rehab and the latest addition D-Stress. NutrientWater-X has been an
instant hit and is set to revolutionise the market for the second time by forcing other
manufacturers to consider using natural sugar alternatives such as stevia instead of
artificial sweeteners (known to cause serious health side effects) in order to shed
calories. The enhanced water category is still in its infancy and there is considerable
growth to come. In the petrol and convenience retail channel (made up of national
retailers such as 7 Eleven, Caltex and BP) the enhanced water category has existed
for less than two years and is already twice the size of the iced tea category and half
the size of sports drinks which are both established beverage categories (Rimington,
Kaitlin, 2010).

COMPARISON BETWEEN THE PCN AND HCN

It is the intention of this paragraph to compare the Parent Country Nationals (PCN) Australia with the Host Country Nationals (HCN) - India. The survey conducted by
professor Hofstedes Cultural Dimensions (2009) has ranked Australia and India
quite close to each other in term of masculinity index number, i.e. 61 and 56
respectively. This indicates that the gaps between the roles of men and women of

both countries are similar in size. The uncertainty avoidance index number for
Australia is 51, and for India it is 40, whereas the world average is 65 (Hofstede,
1983). This suggests that both cultures are more open to unstructured idea and
situation. English is a subsidiary official language but used extensively in business
and administrative areas (The World Fact book, 2009), therefore there are less
communication barriers between employees in host country and home country. India
has substantial highly educated, skilled, young, capable & dynamic human
resources, government stresses on importance of education (Government of India
n.d), thus quality human resource is available. India is a multi-cultural country,
ethnic groups including Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3%
(The World Fact book, 2009). Australia also has a multicultural background; some
norms may be similar, such as respecting each other's culture while doing business.
India has democratic political system and open market (India Country Profile,
2009)it provides fair ground for Australian business to enter the market. India is
very rich in natural resources and accessibility to raw material is critical to
productivity (India Country Profile, 2009). However, Indian very much respect to
hierarchy, discussion is only led by the most senior persons. And people are likely to
blindly respect anything taught by elders. The Individualism index for Australia is
90, the second highest score amount the countries in Hofstedes survey (2009), and
Indian is ranked at 48, which is more towards collectivism. In India, there is a
noticeable lack of privacy and a smaller concept of personal space, where several
generations often live together under one roof. For Indian business practices this
places an additional importance on interpersonal contacts, avoidance of conflict and
a more indirect approach to communication. The wealth distribution is very unequal,
the GDP per capita of $3,100, compare to Australian $38,500 (The World Fact book,
2009). The attractiveness of vitamin beverage to most of Indian people can be much
lower. India has a population of approximately 1.2 billion, and GDP in purchasing
power is 3.5 trillion, with a real growth rate of 6.5% (The World Fact book, 2009).
The market in India is extensively larger than in Australia, and it is still in rapid
growth. Nutrient Water can be benefited from the cost saving if setting business in
India. Indian labour cost is among the world lowest but it is along with the quality
service and sound infrastructure. As there is no other vitamin beverage products
appeared in Indian market before, if the company can successfully penetrate the
economic benefits brought by will be significant. Also, India has a very competitive
market. Further some other global beverage tycoons, such as Coca-Cola, have been
operating in Indian market for years. Therefore the recognition of vitamin beverage
and future possible ongoing concerns might be very challenging.

IHRM PRACTICES

RECRUITMENT AND SELECTION

It is the intention of the report to examine the transition of the NutrientWater
Company to a global orientation and thus, the development of a global management
recruitment and selection system capable of developing an adequate pool of
management candidates to insure organizational efficiency and effectiveness in the
host nation. According to (Tarique, Schuler, & Gong, 2006), the Person-Environment
fit theory (P-E) suggests that the organization should select individuals with similar
characteristics and qualities that meet the demands arising from the environment
and "fit" has significant consequences at both individual and organizational levels
and the integration of three dimensions: a) Strategic - used to balance dual needs of
standardization and localization , b) National - parent country cultural dimension
and cultural similarity between the parent country and the subsidiary country , c)
Organizational - Managerial orientation at the headquarters, under the P-E fit
theory. Whereas, According to (Harvey, Novicevic, & Speier, 2000) suggests that a
design of an integrated competency-based approach to global management staffing
will lead to creation of a sustained competitive advantage and the key component of
this theory is the managerial competencies that enable the top team management to
provide an institutional bridge between the cultural, social and political divide often
found between the domestic and global operations of an organization. Whereas,
According to (Treven, 2006), he argues that it will be viable to use the ethnocentric
approach for the selection criteria of the expatriates and that the expatriates be used
only for the key positions in the host country that comprise of senior manager
position, high-level professional and technical specialists in the subsidiary which in
turn will help lower costs. (Treven, 2006), also believes that hiring certain
percentage of local citizens of the host nation will make the NutrientWater
competent by highlighting the key advantages that they will be familiar with the socio
economic, political and legal environment and with business practices in the host
country; lowering labour costs; Increasing acceptance of the company by the local
community; recognition of the company as a legitimate participant in the local
company. (Treven, 2006), also suggests four key variables such as technical
competence on the job; personal traits or relational abilities; ability to cope with the
environmental variables; and family situation that will assist in deciding the success
or failure of the key expatriates in the host nation. This implies that NutrientWater
will have to choose the best and the key employee for the job overseas by considering
facts such as emphasizing cultural sensitivity as a selection criterion; establishing a
selection board of expatriates; previous international experience; the possibility of

hiring foreign-born employees who can serve as "expatriates" at a future date; to

screen candidates spouses' and families.

TRAINING AND DEVELOPMENT

It is the intention of this paragraph to develop a comprehensive model that
encompasses the interrelationship among perceived needs for expatriate training, the
fit between teaching method and learning style, perceived cross-cultural differences
and training effectiveness before the departure to the host nation. (Naumann, 1992;
Li & Chia-Ying, 2008) suggests that satisfaction, commitment and involvement are
important variables for expatriate training effectiveness. However (Harvey &
Novicevic, 2001), argues that cross-cultural training, language training and jobrelated training will facilitate cross-cultural interaction, which results in higher
confidence and higher expatriate satisfaction with the international assignment.
Cross-cultural training will lead to higher adjustment, which may result in higher
involvement and better performance during the assignment. It will enhance the
expatriate's motivation to learn and then transfer his learning of the employees of the
host company, which will enhance the overall performance of the expatriate and the
host company. In addition, the fit between learning style and training mode is also
essential to promote the effectiveness of expatriate training. (Treven, 2006), suggests
a didactic approach to training that emphasizes knowledge acquisition and is based
on the assumption that a cognitive understanding of a culture is necessary to
appreciate the norms and behaviours of the culture of the host nation. Whereas
(Harvey & Novicevic, 2001), suggest the experiential approach that the learners tend
to follow the four learning steps that starts from concrete experience followed by
observation and reflection which leads to the formation of abstract concepts and
generalization which produces hypotheses to be tested in future action which in turn
closes the cycle leading to exposure to new experience. (Anderson, 2005), suggested
that cross-cultural training, language training, management training and job-related
training of expatriates would facilitate cross-cultural interaction which may result in
higher confidence and satisfaction with the overseas assignment, whereas (Black &
Mendenhall, 1990), suggest that cross-cultural training was effective in developing
skills, facilitating cultural adjustment and enhancing performance.

PERFORMANCE MANAGEMENT
It is the intention of this paragraph to analyse the effects of HCNs on expatriate
effectiveness, with the help of social capital theory to develop and test a model of
expatriate adjustment and performance. (Liu & Shaffer, 2005), suggests to develop a

social capital theory model to systematically consider the benefits associated with the
interactions between expatriates and their HCN colleagues by testing the
relationships between the social capital variables and the expatriate adjustment and
performance and predicts that the opportunities, motivation and ability have direct
effects on the expatriate performance and adjustment. Whereas, (Kraimer, Sandy J,
& Jaworski, 2001), suggest that the effects of Perceived Organisational Support
(POS), Leader-Member Exchange (LMX) and spousal support on expatriates
adjustment to work, country and interaction with host country nationals would
influence the overall task performance and contextual performance of the
expatriates. (Kraimer, Sandy J, & Jaworski, 2001), argues that the parent company
will be the initial source of support and provide benefits and services prior to the
arriving and once in the host country will affect the quality of life and work. Also,
high LMX relationships should be characterized by mutual loyalty, liking,
professional respect, and contributory behaviour towards meeting mutual goals. The
third source argued by (Kraimer, Sandy J, & Jaworski, 2001), highlights the support
of the expatriates spouse which is positively related to the performance of the
expatriate work and general adjustment.

COMPENSATION CRITERIA
It is the intention of this paragraph to analyse how the Nutrient water will seek to
minimize the expatriate failure by providing expatriates with enough incentives to
take on and remain on the assignment until the task is completed. (Crandall and
Phelps, 1991) suggest that the home-country policy, which links the expatriates' basic
salary to the salary structure of their home country, is the most common
compensation approach and by using this pay system- (basic home salary plus
allowances) the company tends to enable expatriates to maintain a lifestyle
equivalent to that which they would have in their home country. The allowances
include the expatriate allowance, hardship allowance, car allowance and home-leave
allowance. Whereas, (Chadwick, 1995; Logger and Vinke, 1995; Schell and Solomon,
1997) suggests that the disadvantage of the home-country policy approach is that it
results in lack of equity as there are salary differentials between the expatriates and
the local managers as well as between the expatriates and the different nationalities.
Further, this policy is the most expensive plain to maintain with regard to purchased
data and administration costs.
(Suutari & Tornikoski, 2001), analyses compensation with extrinsic satisfaction of
the expatriates and suggests about an appropriate compensation design which
should start with the questionnaire to collect some background information related

to the expatriates and their employers. The questions should be based on the predeparture contract-making situation, the major benefits and difficulties related to the
compensation and empty line for written replies. (Suutari & Tornikoski, 2001),
further focuses on the compensation package design which shall include several
types of allowances and insurances. Thus, the level of satisfaction with the
compensation will be measured on a 5-point Likert scale and written replies shall be
collected for the future expatriates.
LEADERSHIP AND MOTIVATIONAL SYSTEMS
It is the intention of this paragraph to determine the differences in the leadership
styles and how an effective cross-cultural leadership style and motivational system
promotes the organizational performance and the success in global business
environment. (Sayeed & Shanker, 2009), argue that high performing organizations
should have high levels of emotional intelligence among the constituent members
and demonstrate strong links between employees' emotional capabilities and their
skills. (Sayeed & Shanker, 2009), further argue that the relationship between
emotional intelligence and transformational leadership dimensions in a multitude
framework has established the theorized stimulus of emotional intelligence
disposition at the core managerial level that comprise managing aspects and the soft
skills that together maximise superior-subordinate goal directed interaction process.
(Fudge & Schlacter, 1999), suggests that the effort-performance expectancy (E-P)
model provides a link between the expatriates intrinsic and extrinsic factors of
motivation and that the organization should carry ethics training programs
consisting of training videos, board games and orientation sessions. Whereas,
(Nadler and Lawler, 1977), suggest three step expectancy theory based method which
include stage 1) is to determine which performance rewards have the highest valence
for employees, stage 2) is to foster a motivational environment to define and
communicate the kinds of behaviour the organization expects from the employee
expatriates and stage 3) is to foster a motivational environment to link the
behaviours desired by the organizations to outcomes desired by the employee
expatriates.
LEGAL AND ETHICAL CONISDERATION
It is the intention of this paragraph to address the legal and ethical dimensions of a
strategic approach to IHRM by engaging the strategy of composition of place. (Carey,
1999), suggests that according to Australian Human Resource Institutes' (AHRI),
"the first responsibility of human resource professionals is to their employers,

although they have obligations also to the employees to ensure that the conditions of
their employment are in accordance with law and that they are treated fairly,
reasonably and equitably in their employment". According to (Carey, 1999), within
the strategic HR paradigm HR executives are senior managers who, along with their
colleagues, need to recognize the central role in the operationalization of corporate
ethics. The HR executives plan an enterprise's entrepreneurial goals and
responsibilities by reference to its ethical area and that ethical area includes the
organizations mission statement and code of ethics; its culture and top management
support; education of line managers in how to negotiate ethical terrain and the
integration of ethical conventions into the strategic decision-making processes.
CONCLUSION
In conclusion the key issues identified within the international human resource
practices are identified with the help of academic literatures by expert authors and
are used in day-to-day organizations. And that the models and theories used in
recommendations will be useful for the organization to analyse and evaluate the
recruitment and selection criteria of the expatriates, the training and development of
the expatriates, the performance management and the compensation criteria. The
key issue and recommendation of the selection criteria is to measure the technical
competence, the interpersonal skills and the domestic circumstances. The key issue
identified in training and development is the language barrier, lack of cross-cultural
know-how and assumptions and the key recommendations are that the expatriates
be given six type of cross-cultural training with the help of a good instructor. The key
issue identified and the recommendation to the expatriates in the performance
management is that they get adequate financial support, support from spouse and
healthy relationship with the host country nationals. The key issue identified and the
recommendation to the organization in terms of compensation criteria is that they
have a proper compensation package design and they follow the home country policy
approach of compensation during the set-up phase in the host nation. Further, it is
concluded that the IHRM policies are adhered to the Australian Human Resources
Institute in adopting professional code of conduct in HR operations and that the HR
professionals have internalized the ethical standards.
RECOMMENDATIONS

Recruitment and Selection -

It is recommended that NutrientWater evaluates the technical competence of the

expatriate with the help of supervisor's work and reports, interviews, work history
and performance in previous and current positions, reference checking and
qualification during the selection process.
It is recommended that NutrientWater evaluates the interpersonal skills of the
prospective expatriate with the help of psychological assessment and a residential
training programme during the selection process.
It is recommended that NutrientWater analyses the domestic circumstances of the
expatriates including personal interviews with the spouse regarding the suitability of
posting, partner's career, children's circumstances and overall family circumstances.

Training and Development It is recommended that the NutrientWater expatriates should be given six important
types of cross cultural activities comprising of environmental briefings, cultural
orientation, cultural assimilators, language training, sensitivity training, job-related
training, management training, field experience training, and communication skills
training and on-the-job training.
It is recommended that the NutrientWater expatriates comply with the five-point
questionnaire items which are based on the instructor's experiential and conceptual
learning method. The fit between the instructors teaching methods and expatriates
learning style shall serve as a moderating effect for the influence of expatriate
training on training performance.
It is recommended that the NutrientWater expatriates will be given the training of
cross-cultural difference based on five cultural factors that are universal for a nation
with the help of five-point questionnaire items. These values include Power Distance
(PDI), Uncertainty Avoidance (UAI), Individualism (IDV), Masculinity (MI) and
Confucian dynamic (LOTI).

Performance Management It is recommended that NutrientWater provides expatriates with enough financial
support to maintain the expatriates standard of living in the host country during the
set-up phase of the subsidiary, followed by other key benefits such as assistance in
housing relocation, membership in social clubs, rest and relaxation vacation leave,

assisting with schooling for children, and spousal employment and also to maintain
communication with the expatriates.
It is recommended that NutrientWater complies with high-quality LMX relationship
and that the expatriate should receive information and assistance that will serve as a
supportive aid in the host nation and that it should be highly characterized by mutual
loyalty, liking, professional respect and contributory behaviour towards meeting
goals.
It is recommended that the spousal support will positively affect the expatriates work
adjustment and performance and so with respect to work adjustment the spouse
shall provide support to the expatriate by assisting him/her with relocation, and
freeing up time for the expatriate to focus on work and on the other hand, the spouse
can serve as a "cheerleader" to the expatriate and reiterate his/her beliefs concerning
work related abilities.

Compensation Criteria It is recommended that the NutrientWater uses the home-country policy approach to
compensate the expatriates for their work in the overseas nation and by using this
pay system the organization intends to enable the expatriates to maintain a lifestyle
equivalent to that which they enjoy in the home country.
It is recommended that the NutrientWater designs an effective expatriate
compensation package, which means, that the job-satisfaction of the expatriate
should be directly related to the compensation package rewarded to him/her during
the initial set-up of the subsidiary in India.
It is recommended that the NutrientWater signs a contract with full details regarding
the compensation package design with the expatriates and do not comply on verbal
agreements to avoid repatriation or expatriate failure in the host nation.

Leadership and Motivational Systems It is recommended that the CEO expatriate adapt transformational leadership style
because of the transfer to host nation with different business ethics and cultural
diversity, which will help him achieve the goals of the initial success of the set-up
phase.

It is recommended that the CEO expatriate adapt a three-way expectancy model

approach to contribute towards ethical behaviour of the employees, motivation and
to shape up the employee's problem solving approach

Legal and Ethical Considerations It is recommended that CEO expatriate, for the successful operation of the
management in the host nation, adopt a professional code of conduct under the
umbrella of ethics which will clarify both the trainees and old HR professionals, their
values by which objectives and activities of the HRM function are to be carried out
and also it will serve as a guide to HR professionals in matters of conflict of interests.
It is recommended that the HRM professionals are given training in moral reasoning
to internalize ethical standards and to develop necessary skills to translate written
standards into practices.