Your SlideShare is downloading. ×
0
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Expatriate failure
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Expatriate failure

1,212

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,212
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
85
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. StudsPlanetLeading Education consultant in India www.StudsPlanet.com
  • 2. Expatriate Failure Premature return of an expatriate Under-performance during an international assignment
  • 3. InternationalAssignment FailureInternational assignment failure can cost hundreds of thousands of eurosWhy International Assignments fail? Personality Person’s intentions Family pressures Lack of cultural skills Other non-work conditions like living and housing conditions, and health care
  • 4. Improving Failure Rates/ Solutions Provide realistic previews Have a careful screening process Improve orientation Provide good benefits Test employees fairly Shorten assignment length
  • 5. Expatriate Failure RatesRecall Rate Percent Percent of Companies US Multinationals 20 - 40% 7% 10 - 20% 69 < 10 24 European Multinationals 11 - 15% 3% 6 - 10 38 <5 59 Japanese Multinationals 11 - 19% 14% 6 - 10 10 <5 76 IBUS 618 Dr. Yang
  • 6. Expatriate selection Reduce expatriate failure rates by improving selection procedures An executive’s domestic performance does not (necessarily) equate his/her overseas performance potential Employees need to be selected not solely on technical expertise but also on cross-cultural fluency
  • 7. Four attributes that predict success Self-Orientation  Possessing high self-esteem, self-confidence and mental well-being Others-Orientation  Ability to develop relationships with host-country nationals  Willingness to communicate Perceptual Ability  The ability to understand why people of other countries behave the way they do  Being nonjudgmental and being flexible in management style Cultural Toughness  Relationship between country of assignment and the expatriate’s adjustment to it
  • 8. Reason for Expatriate Failure  US Firms  Japanese Firms Inability of spouse to  Inability to cope with adjust larger overseas responsibilities Manager’s inability to  Difficulties with the adjust new environment Other family problems  Personal or emotional Manager’s personal or problems emotional immaturity  Lack of technical Inability to cope with competence larger overseas  Inability of spouse to responsibilities adjust
  • 9. Costs of Expatriate Failure  Direct costs:  Costs vary according  Airfares to:  Associated relocation  Level of position expenses  Country of  Salary and benefits destination  Training and  Exchange rates development  Whether ‘failed’ manager is replaced by another expatriate
  • 10. Indirect Cost of Expatriate Failure  Damaged relationships with key stakeholders in the foreign location  Negative effects on local staff  Poor labor relations  Negative effects on expatriate concerned  Family relationships may be affected  Loss of market share
  • 11. MANAGING EXPATRIATE FAILURE Design a job that maximise role clarity, minimises role conflict with proper selection of candidate. Provide opportunity for languages lessons. Provide all information & equipment pertinent to the role/work of the employee. Provide proper organisational support systems from supervisors & co-workers in the host country. Include spouse in any trainning & support programmes
  • 12. The Employment Relationship The nature of the employment relationship  Relational: broad, open-ended and long-term obligations  Transactional: specific short-term monetized obligations The condition of the relationship  Intact: when employee considers there has been fair treatment, reciprocal trust  Violated: provoked by belief organization has not fulfilled its obligations
  • 13. Likelihood of Exit
  • 14. Training and developmentTraining: Obtaining skills for a particular foreign posting  Cultural training : Seeks to foster an appreciation of the host-country’s culture  Language training : Can improve expatriate’s effectiveness, aids in relating more easily to foreign culture and fosters a better firm image  Practical training: Ease into day-to-day life of the host country
  • 15. Organizational Commitment  Affective component  Employee’s emotional attachment to, identification with and involvement in, the organization  Continuance component  Based on assessed costs associated with exiting the organization  Normative component  Employee’s feelings of obligation to remain
  • 16. Why consider the psychological contract? Nature, location and duration of an international assignment may provoke intense, individual reactions to perceived violations Expatriates tend to have broad, elaborate, employment relationships with greater emphasis on relational nature Expectations and promises underpin this relationship
  • 17. Harris and Brewster’s Selection TypologyFormal InformalOpen Clearly defined criteria  Less defined criteria Clearly defined measures  Less defined measures Training for selectors  Limited training for selectors Open advertising of vacancy  Open advertising of vacancy (internal/external)  Recommendations Panel discussions  No panel discussionsClosed Clearly defined criteria  Selector’s individual preferences Clearly defined measures determine selection criteria and measures Training for selectors  No panel discussions Panel discussions  Nominations only (networking/reputation) Nominations only (networking/reputation)

×