Expatriate Management in Global Companies

With the development of global companies and the increase of the internationalization level of their businesses the differences between cultures , political and economic patterns, which they operate in, are becoming more distinct, so their need to take those differences into consideration while formulating business strategy and the course of competitive struggle is growing. The most important goals of HRM in a global company are to ensure the competitive advantage, efficiency, local responsiveness and flexibility, but also knowledge transfer and learning within a global company. The most efficient way to ensure the compatibility between satisfaction of local interests and company’s global strategic goal is by moving people with critical organizational knowledge through organizational parts and by process of socialization. By expatriation global companies achieve the internationalization of values system, which enables managers to be able to make strategically important decisions, as well as operational one, in the way that they are in compliance with the mission, vision and strategy of a company as a whole. Also, the creation of informal networks between employees and knowledge and skills transfer between organizational parts.