This document summarizes a study on the challenges of managing expatriate employees during crises. It discusses literature on expatriate selection, preparation, and repatriation. It then describes the methodology of interviewing 15 HR managers in India. Key findings from the interviews are summarized relating to expatriate selection process, preparation training, and repatriation process. The conclusion states that planning repatriation from the start of expatriation can help organizations better manage human resources globally and encourage employees to accept foreign assignments.

1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
Volume 3, Issue 3, September- December (2012)
ISSN 0976 – 6502(Print)
ISSN 0976 – 6510(Online)
Volume 3, Issue 3, September- December (2012), pp. 139-143
IJM
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CHALLENGES OF MANAGING MNC EXPATRIATES THROUGH
CRISES-A STUDY
S.ARUNKUMAR,
ASST.PROF, SCHOOL OF MANAGEMENT,
SRMUNIVERSITY,
CHENNAI
ABSTRACT
International crises experienced by multinational corporations include both the premature return of
expatriates due to failed assignments and the poor retention of returned expatriates due to failed
repatriation. To reduce the direct and indirect costs inherent with expatriate failure, multinational
corporations are striving to improve their capability to manage their expatriates before, during and after
international assignments. This article highlights these issues and discusses the challenges for human
resource professionals when managing expatriates. The results of the study presented in this paper suggest
that the management of international human resources is increasingly being acknowledged as a major
determinant of success or failure in international business. It concludes by proposing that a well-managed
and proactive response to an international crisis may help an organization retain experienced international
employees.
1.0 INTRODUCTION
Most common challenges faced by employers of international assignees are those regarding the
competitiveness of expatriate packages, issues with different tax structures and of overall cost
containment. This is especially true of companies of Indian origin who find themselves
challenged by significant costs, borne to offset international compensation inequity.
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2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 3, September- December (2012)
2.0 REVIEW OF LITERATURE
Multinational corporations (MNCs) use expatriates, not only for corporate control and expertise
reasons in vital global markets, but also to facilitate entry into new markets or to develop
international management competencies (Forster 2000 et al.).It is widely acknowledged in the
relevant literature (Coombs 2001 et al) that the process of crisis management entails three main
phases. These phases are conceptualized as (1) Preparedness, which is the period of preparing
plans and procedures for addressing a crisis; (2) Responsiveness, or the actual dealing with the
crisis; and (3) Recovery, during which the organization returns to normal operations as quickly
as possible. These three phases are considered as sequential phenomena in a continuous cycle so
that the Recovery phase, which follows the Responsiveness phase, also precedes the
Preparedness phase. In this paper, the Responsiveness of expatriate crisis management is
delineated in
an auto reflective narrative design that utilized the responses of 15 expatriate managers.
MNCs, and subsequently, identified four general categories which may contribute to expatriate
success. These are broadly described as (1) technical competence on the job, (2) personality traits
or relational abilities, (3) environmental variables, and (4) family situation. This is further
supported by Ronen’s (1989) model that incorporates the dimensions of expatriate success
identified by Tung (1981). Ronen (1989), describes five categories of attributes of success: (1)
job factors, (2) relational dimensions, (3) motivational state (4) family situation, and (5) language
skills. The five categories and their specific aspects are outlined in Table 1.
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3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 3, September- December (2012)
Table 1
Categories of Attributes of Expatriate Success
Relational Family Language
Job Factors Motivational State
Dimensions
Situation Skills
Willingness of
Tolerance for Belief in the Host country
Technical skills spouse to live
ambiguity mission language
abroad
Familiarity with host
Adaptive and
country and Behavioral Congruence with Non verbal
supportive
headquarters flexibility career path communication
spouse
operations
Non- Interest in overseas Stable
Managerial skills
judgementalism experience marriage
Cultural empathy Interest in specific
Administrative
and low host country
competence
ethnocentrism culture
Willingness to
acquire new
Interpersonal skills patterns of
behavior and
attitudes
Source: Ronen, S. 1989, Training the International Assignee. Training and Career Development
(1st ed), San Francisco: Goldstein.
Ronen (1989) identified these five selection attributes (Table 1) as contributing to greater
expatriate success in international assignments as compared to the customary selection of
expatriates based solely on technical abilities.
Once an employee has been selected, pre-departure training becomes the next critical step in
attempting to ensure the expatriate’s effectiveness and success abroad (Mendenhall et al. 1987).
Career counseling for the spouse is becoming necessary because the dual career dilemma is
becoming more important, especially with the increase of women in the workforce (Collins
1996). Given the difficulties of re-entry, expatriates and their families need help to readjust back
into their home country. The two most important issues are (1) career planning and (2) ‘reverse
culture shock’ (Hammer, Hart & Rogan 1998). To assist the expatriate and family to readapt to
work and life in general and to help overcome reverse culture shock, re-entry training such as
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4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 3, September- December (2012)
counseling workshops and career development consultations prove useful in the adjustment
process (Sievers 1998).
3.0 METHODOLOGY
The sample population of this research was drawn from 30 human resource managers in India.
The respondents interviewed consisted of nine HR managers, four HR specialists, one business
service manager and one administration officer. Sixty per cent of the respondents were females.
Using the guidelines provided by the Who’s Who of India (2001), large organizations were
selected if they (1) employed more than 44 people, (2) were publicly listed, and (3) incorporated
two or more overseas branches. The research procedure involved interviewing human resource
managers or their representatives in 15 Indian companies, using a structured interview
questionnaire which incorporated a checklist of expatriation and repatriation practices. These
questions were based on the best practices identified through the literature search (e.g., pre-
departure training approaches, selection criteria, re-entry success). This strategy enabled
respondents to reflect on their experiences and observations of the appropriateness of HRM
practices and polices to prepare and train expatriates for the responsiveness phase of
organizational crises (i.e., expatriate management).The interview schedule explored three key
issues on expatriate management: (1) expatriate selection process (i.e., criteria of successful
selection), (2) expatriate preparation (i.e., pre-departure and cross culture training), and (3)
repatriation career management/assistance (i.e., mentoring before, during and after the
assignment; insuring a comparable job upon re-entry).
4.0 ANALYSIS OF THE STUDY
The data from the interviews were content analyzed. Once the interview data were collected, the
tapes were transcribed and data coded. Coding involved the labeling of concepts from the text
relevant to the research problem. The aim was to move from a set of unstructured data
(participant’s accounts), to a collection of theoretical codes, concepts and interpretations. This
approach dealt with the analysis of the broad ‘themes and content of participant’s accounts’.
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5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online),
Volume 3, Issue 3, September- December (2012)
5.0 FINDINGS OF THE STUDY
The results of this study were summarized in three major sections which parallel the research
foci of expatriate management. Responses to the asked questions will be reported in the three
categories of (1) expatriate selection process, (2) expatriate preparation (pre-departure training),
and (3) repatriation process.
6.0 CONCLUSION
The results of the study indicated that repatriation must be planned carefully, from the time of
expatriation when expatriate selection occurs. By putting in place suitable HR policies and
procedures, an organization can both, more efficiently manage human resource globally and
encourage more employees to accept foreign transfers. This emphasis is a visible sign that the
organization supports expatriates and attempts to contribute to employee success in the overseas
assignment. This Preparedness Phase will significantly increase the probability of successfully
managing expatriate crisis situations because responsibilities and liabilities are clarified before
the crisis happens.
7.0 REFERENCES
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