International Business People  Sent by employers to work and live          temporarily abroad
Similar Psychologically to the Sojourn• Work has finite limit• Clear assignments that they are expected to  finish• Must b...
The expatriate experience--studies    managerial/professional roles• Provide human link in international trade• Effectiven...
Topics specific to expat experience• Work-related cognitive styles/responses  (negotiations, influencing, leading)• Manage...
Cultural Distance• Role is evident in ABC components• Affects how people feel about life  and work abroad• Adeptness in re...
Principle problems derived from North American practices and assumptions•   Flexible working hours•   Consultative leaders...
Principle problems (cont.)• Negotiation practices (rational vs emotional  appeals)• Selection, recruitment and advancement...
“Nobody can think globally.”         (Hofstede, 1998)• Problematic for expat managers who  are expected to put into effect...
Heterogeneous work groups• More cultural distance among workers has  adverse affects on group performance, more  difficult...
“Would you trust your foreign            manager?”• Trust between managers and  supervisors was greater in  homogeneous th...
Leadership Style• Authoritarian/autocratic vs  participative/democratic (leaders make  all decisions vs share power with  ...
Transactional vs Transformational        Leadership (Bass, 1997)• Makes explicit reference to characteristics of  the lead...
Transformational Leaders• According to Bass, transformational  leaders are more effective than leaders  who follow conting...
Collectivist Values• Some evidence that transformational  leadership is consistent with collectivist  values, whereas indi...
Work performance and Satisfaction• Recent study by Eylon and Au (1999) looked at  high power distance (Asian) and low powe...
Self-managing teams• Western idea that workers who are given  more freedom in decision-making will increase  productivity ...
Joint ventures in China• ‘China fever,’ many joint ventures have been  failures in financial terms (only 44% report  meeti...
Guanxi• Key element for successful commercial  transactions in China• Westerners regard a business relationship as  short-...
Selecting International Managers• Psychological literature emphasizes  interpersonal and cross-cultural skills as key  det...
Motivation to undertake expat            assignments• The decision to send executives abroad is  often made on an ad-hoc b...
Expatriate Adjustment• Cultural distance• Extent of social support• Actual or perceived treatment by host  society• Extent...
Cultural Distance• Western expats based in Europe experience  fewer difficulties than those working in Africa• German mana...
Host Attitudes• Greater perceived host ethnocentrism  (measured by items reflecting perceived  cultural superiority and in...
Expats Abroad• Between 20 and 50% return prematurely, a  financial burden on companies• ‘realistic job interview’ or previ...
Expatriate Women• Women are under-represented in expat  assignments due to myths that inhibit women  from being offered ov...
Expatriate Women• Both men and women are equally successful  but adjustment is to some extent affected by  the work values...
Repatriation• Up to 80% of expats suffer culture shock  during repatriation. Adler (1977) found that 1  in 5 employees wan...
Inpatriation• Employing inpatriate managers is advantageous  based on their knowledge of local business; can  serve as inf...
International business people
Upcoming SlideShare
Loading in …5
×

International business people

1,224 views

Published on

Published in: Education, Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,224
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
19
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

International business people

  1. 1. International Business People Sent by employers to work and live temporarily abroad
  2. 2. Similar Psychologically to the Sojourn• Work has finite limit• Clear assignments that they are expected to finish• Must be able to interact successfully with local counterparts to achieve goals• Will experience dislocation associated with unfamiliar cultural settings• Career path may be affected by assignment
  3. 3. The expatriate experience--studies managerial/professional roles• Provide human link in international trade• Effectiveness has a direct link to international commerce• Sojourn group most likely to receive pre- departure training, cultural orientation• Undergo psychological assessments as part of selection process
  4. 4. Topics specific to expat experience• Work-related cognitive styles/responses (negotiations, influencing, leading)• Managerial practices do not easily cross cultural boundaries• Role of the spouse• Re-entry process, reintegration• Problems specific to female expats• Inpatriation
  5. 5. Cultural Distance• Role is evident in ABC components• Affects how people feel about life and work abroad• Adeptness in realizing personal/professional goals• Work-related perceptions and decisions
  6. 6. Principle problems derived from North American practices and assumptions• Flexible working hours• Consultative leadership style• Egalitarian interpersonal relationships• Emphasis on task achievement• Direct performance feedback• Reliance on written rules• rewards
  7. 7. Principle problems (cont.)• Negotiation practices (rational vs emotional appeals)• Selection, recruitment and advancement based on merit• Psychological contracts and formal relationships, ‘a fair days work for a fair day’s pay’• Right of worker and employer to break contract
  8. 8. “Nobody can think globally.” (Hofstede, 1998)• Problematic for expat managers who are expected to put into effect company-wide policies and practices that may be lost on subsidiaries, changes to accommodate may dilute corporate culture/centralization
  9. 9. Heterogeneous work groups• More cultural distance among workers has adverse affects on group performance, more difficult to manage• Less interpersonal harmony, increased stress and turnover• Advantages include more creativity (learning how to manage diverse groups may provide competitive advantage)
  10. 10. “Would you trust your foreign manager?”• Trust between managers and supervisors was greater in homogeneous than heterogeneous work settings (Banai & Reisel, 1999)• Increases with more cultural distance
  11. 11. Leadership Style• Authoritarian/autocratic vs participative/democratic (leaders make all decisions vs share power with subordinates)• Task-oriented vs people-oriented styles (structure vs consideration)• Contingency theories (ignores characteristics or personality of the leader)
  12. 12. Transactional vs Transformational Leadership (Bass, 1997)• Makes explicit reference to characteristics of the leader and leader-follower relationship• Transactional leadership based on exchange principle (rewards for compliance)• Transformational leadership based on ability of a leader to motivate followers to work for goals that go beyond self-interest for benefit of the group, inspire followers
  13. 13. Transformational Leaders• According to Bass, transformational leaders are more effective than leaders who follow contingent-reward strategy• Advantageous across cultures• Transcends organizational boundaries
  14. 14. Collectivist Values• Some evidence that transformational leadership is consistent with collectivist values, whereas individualist values are more in line with transactional approach• High power distance makes employees more likely to accept their leaders’ vision• Some studies support the idea that individualists respond better to styles that are consistent with cultural orientations
  15. 15. Work performance and Satisfaction• Recent study by Eylon and Au (1999) looked at high power distance (Asian) and low power distance (Northern European, Canadian) among ‘empowered’ workers• All participants were more ‘satisfied’ when working under empowered circumstances, but high-power distance empowered workers performed less well than empowered, low power-distance workers
  16. 16. Self-managing teams• Western idea that workers who are given more freedom in decision-making will increase productivity and satisfaction• Similar to another modern trend, ‘semi- autonomous work groups’ (organizational structures with flattened hierarchies)—highly effective in the right circumstances, but may be counterproductive in some cultures
  17. 17. Joint ventures in China• ‘China fever,’ many joint ventures have been failures in financial terms (only 44% report meeting profit targets)• Cultural differences play a major role in exacerbating market-related difficulties such as guanxi relationships that are based on mutual trust and willingness to enter into long term commercial relationships
  18. 18. Guanxi• Key element for successful commercial transactions in China• Westerners regard a business relationship as short-term transactions where each party tries to maximize its benefits• Even if guanxi is accounted for, ‘outsider status of Western companies may affect success
  19. 19. Selecting International Managers• Psychological literature emphasizes interpersonal and cross-cultural skills as key determinants of success, but technical ability and job performance continue to be major selection criteria• ‘Coffee-machine system’ refers to candidates being selected based on personal recommendations
  20. 20. Motivation to undertake expat assignments• The decision to send executives abroad is often made on an ad-hoc basis dictated by market forces rather than staff career development, motives of sojourners are largely ignored, and their willingness to go abroad taken for granted (Spiess and Wittmann, 1999)
  21. 21. Expatriate Adjustment• Cultural distance• Extent of social support• Actual or perceived treatment by host society• Extent of sojourn experience contributing to career advancement
  22. 22. Cultural Distance• Western expats based in Europe experience fewer difficulties than those working in Africa• German managers in U.S. report greater cultural awareness, knowledge and work satisfaction than their American counterparts in Japan• Mangers posted to similar cultures are less sensitive to differences that do exist and may attribute problems to personal deficiencies
  23. 23. Host Attitudes• Greater perceived host ethnocentrism (measured by items reflecting perceived cultural superiority and intolerance) was negatively associated with work adjustment and commitment to the local branch of the organization (Florkowski and Fogel, 1999)
  24. 24. Expats Abroad• Between 20 and 50% return prematurely, a financial burden on companies• ‘realistic job interview’ or preview, meant to alert applicants to negative and positive aspects of the job are not in regular use with respect to international assignments
  25. 25. Expatriate Women• Women are under-represented in expat assignments due to myths that inhibit women from being offered overseas assignments such as assumptions by managers that women do not want to work overseas (Adler, 1977)• Studies show a reluctance by both men and women when cultural distance is high (women reluctant to accept assignments in Vietnam, Saudi Arabia and Indonesia) Kogut and Singh, 1988
  26. 26. Expatriate Women• Both men and women are equally successful but adjustment is to some extent affected by the work values of host culture• Married females are better adjusted than single females• Company support has significant effect• Women in higher level positions report more positive experiences
  27. 27. Repatriation• Up to 80% of expats suffer culture shock during repatriation. Adler (1977) found that 1 in 5 employees want to leave organization after returning; less than half receive promotions; two-thirds feel sojourn had an adverse affect on careers; nearly half believe their re-entry position is less satisfying than overseas assignment• Expectations and outcomes strongly linked
  28. 28. Inpatriation• Employing inpatriate managers is advantageous based on their knowledge of local business; can serve as informal mentors to expat managers; provide local perspectives on business plans; better position to communicate with local suppliers and government officials; less expensive• MNC reluctant to hire foreign managers based on desire to maintain tight control, but the future will see steady growth of inpatriation

×