Role of family in international assignment
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Role of family in international assignment

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Role of family in international assignment Role of family in international assignment Presentation Transcript

  • The Role of Family inInternational AssignmentsIBUS 618Chris CheeDiego HernandezKen LeeEugenia PawBilinc Yurtseven
  • Presentation Outlineo Introduction: Diego Hernandezo Cultural Differences: Chris Cheeo Problems : Bilinc Yurtseveno Recommendations: Eugenia Pawo IHRM Policies: Ken Leeo Oracle & Conclusion : Chris Chee
  • Expatriate Failure • Returning Home before the period of assignment is completed • Underperforming on assignment as a result of difficulties in adapting to their new lives
  • The Role of Family inInternational Assignments Expatriation Process: “Today’s workers are less willing to sacrifice their own and their family’s lifestyle without a clear understanding of the benefits to them.” (Leong, K. 2003) Repatriation Process: The longer the person is away from the home country, the more likely there will be readjustment problems upon return.
  • Factors ModeratingPerformance • Inability to Adjust to Foreign culture • Length of Assignment • Willingness to move • Work-Related Factors
  • Personal ExperienceGoing Abroad to Ecuador:• Willingness to Move: Spouse Career, Children’s Education• Length of Assignment: Affected by unhappy spouse• Inability to Adjust: Frustration which led to failure
  • Costs of FailureDirect:• Airfares• Relocation Expenses• Salaries• TrainingsIndirect:• Loss of market share• Difficulties with Host government officials• Brand image
  • Repatriation• Staff Availability• Return On Investment: “US Multinationals spend around 1 million dollars on each expatriate”• Knowledge of Transfer
  • Country Profile USA •Japan •United Kingdom
  • USA• Punctuality is important• Low context culture• Individualistic• Relationship Build up - Task orientation• Explicit Communication Style & Time Orientation• Persuasion - Instrumental orientation• Long work days, little vacation time• Disagreements are common and acceptable
  • Japan• High context culture• Gesture-free body language• Personal interrelation is a traditional feature of Japanese society• Importance of saving face• Punctuality is essential• Long negotiations process• Long periods of silence during negotiation process• Women’s roles: managing household and care of children• Long-term relationships are positively encouraged
  • United Kingdom• Low context society• Polite and courteous• Formal and detached when faced with difficult situations• Punctuality is important• Decision-making is often a slow and systematic process due to rules• Teamwork is important with strong sense of individuality
  • Expatriate Failure Survey A survey for United States MNCs revealed thatEuropean and Japanese multinationalcorporations (MNCs), identified significantexpatriate failure in U.S. companies for fourreasons: •The spouses inability to adjust to a different physical or cultural environment •Spouses Social Life •Children’s education •The employees inability to adjust. (The employees personal or emotional immaturity) •Other family problems
  • Important issues to cover whenscreening the family are• * Level of marital stability• * Responsibilities for aging parents• * Chemical dependencies on the part of anyone in the household• * Existence of learning disabilities in a child• * Behavioral problems in teenagers• * Emotional stability of family members• * Strength of family ties to the community or to other family members not going overseas• * Strength of childrens attachment to extracurricular activities• * Family cohesiveness• (Avoid expatriate culture shock HR Magazine, July, 1993 by Marvina Shilling)
  • The role of the spouse…(Case of Japan)• A study of Japanese expatriates found that family related problems were the most important issues in expatriate failure ( Fukuda & Chu 1994)o Adjusting to foreign cultureo Concerns about their mate’s performance at worko Children’s educationo Stage of the family life-cycleo Government restrictions on their employmento Financial Concerns ( Dual Career Couples)
  • Children & Education• Japanese executives indicate that children’s education is the main problem• Spouses and children had to return to Japan• 64.7% American, 56.3% British expatriates in Japan, send their children to International schools.• Small number send their children to Japanese schools. ( 12.5% UK, 2.9% USA)
  • Satisfaction With Life Abroad• American and British expatriates and their families were asked 8 items related to satisfaction with life in Japan.
  • Recommendations• Select the right person• Offer Pre-departure training programs• Provide Support services• Short-term assignments
  • Select the Right Person…• Assess skills, competencies, and international experience• Assess individual and his/her family’s ability to adapt
  • Pre-departure TrainingPrograms…• Cultural awareness programs – Level of interaction (High or Low) – Degree of similarity (High or Low) – Training methods• Preliminary visits – Provide a preview – Introduction to the business
  • Pre-departure TrainingPrograms Cont.• Language training – Key to adjustment – Gain access to social support structures – Important in terms of task performance and cultural adjustment
  • Support Services• Spousal career assistance – Job search assistance – Inter-company networking – Career counseling and support• Finding suitable schools• Additional orientation programs – Language training
  • Short-term assignments• Extended business trips – Range from several months to one year• Commuter expatriate assignments – Commute from home country on a regular basis• Virtual expatriate assignments – Manages from home-base
  • U.S. Multinational CorporationStaffing Policies• Used parent-country nationals (PCNs) for some control functions – Finance; Accounting• Used local or third country nationals (TCNs) served for market-sensitive functions – Marketing; Advertising• Used host-country nationals (HCNs) for greater extent of all levels of management – Management Level
  • British MultinationalCorporation Cont.Expatriate Policies• Selection – Informal Interview * – Formal Interview – Psychometric Testing• Training – Informal Briefing – Language Training – Cultural Orientation• Repatriation – Sink or Swim Attitude * Informal interview is more reliable because it can avoid potential candidates intentionally concealing family concerns and issues
  • British MultinationalCorporation• Staffing Policies• Use of parent-country nationals expatriates to run foreign subsidiaries – Management Development – Objective of control of local operations• Intention to employ more third-country nationals (TCNs)• Ex. Imperial Chemical Industries Ltd. (ICI), Britain’s largest industrial is one of the surveyed companies, and it employed 250 TCNs out of 550 expatriates.
  • U.S. Multinational CorporationCont.Expatriate Policies• Selection – Performance Record – Psychological Tests – Interviews with both candidate and spouse • Interviewing both candidate and spouse benefits both the company and the candidate’s family• Training 2/3 of the respondents didn’t have pre-departure training programs • Trend of employing local nationals • Short-term nature of such assignments • Doubt over the effectiveness of such training program and lack of time • Fear that employees may leave the company• Repatriation Lack of clear repatriation policies and comprehensive planning
  • Japanese MultinationalCorporation Staffing Policies • Used PCNs more extensively in their top and middle management positions in their oversea operations • North American operations were relatively more important to Japanese MNCs • Japanese MNCs prefer to send older and more experienced managers for international assignments
  • Japanese MultinationalCorporation Cont.Expatriate Policies• Selection – Managerial talent was the most important criteria for selecting candidates of CEO – Gender of candidate was being considered in the selection – Usually women would not be assigned as expatriates• Training – Provide more rigorous training programs – Stress the importance of language training• Repatriation – Closer communication with headquarters and exchange of information – Japanese expatriates have certain planned career paths at headquarters • Well planned repatriation policies and benefits can reduce family problems, especially spouse’s dissatisfaction for international assignments.
  • Work Family RelationshipsOracleCompany Profile – Based in Redwood City – Founded in 1977 – 40,000+ employees in 1977 – Enterprise software giant provides a range of tools for managing business data, supporting business operations, and facilitating collaboration and application development.
  • Oracle ExpatriateWork/Family Relationships• Expatriate benefits – Work Relocation reimbursement of up to $20,000 – All phone calls to parent country are reimbursed – Club memberships – 4 trips back to parent country per year – Schools are paid for – Flexible work schedule, 3 months at host country, 3 months at home country – Employee Assistance Program (EAP) – LifeWorks Family Resource and Referral Program