2. FLOW OF THE PRESENTATION
1. INTRODUCTION
•Staffing Policy
2. Managing expatriates (Keywords: Stress, Expatriate Stress, Stressors.)
•Brief summary
•Stress Process in Expatriates
•Stressors in Expatriate Assignment
3. Training module for Expatriates
•the two types of strategies, which an organization may adopt in its training module
And individual Coping Strategies
4 .Training evaluation framework for expatriates
•Implementation issues across cultures
•The Kirkpatrick model and the 360-degree feedback in expatriates
5. Case study
3. An expatriate (in abbreviated form, expat) is a person temporarily or permanently
residing in a country and culture other than that of the person's upbringing or legal
residence. The word comes from the Latin term expatriātus from ex ("out of") and ‘patria’
the ablative case of patria ("country, fatherland").
Host country nationals(HCN’s):Citizens of the country in which the organization's
foreign subsidiary operates.
Parent country nationals (PCN’S):The citizens of the country in which the
headquarters of the multinational are based.
Third country national (TCN’s):The citizens of a country other than the parent or
host country.
4. CORPORATE CULTURE AND EXPATRIATE SELECTION
Corporate Culture
“an organizational variable which may “mould and shape internal culture to
particular ways and how to change culture, consistent with managerial purposes”
“a view of organizations as expressive forms, manifestations of human
consciousness”.
5. Staffing policy:
Selecting individuals with requisite skills to do a particular job.
Also as tools for developing and promoting corporate culture.
Types of staffing policy:
Ethnocentric.
Polycentric.
Geocentric.
Staffing Policy
6. Ethnocentric
Key management
positions filled by
parent-country
nationals
Polycentric
Host-country
nationals manage
subsidiaries,
parent company
nationals hold key
Headquarter
positions
Geocentric
Seek best
people, regardless
of nationality
Types of Staffing Policy
7. Expatriate failure:
Premature return of the expatriate manager to his/her home country
Cost of failure is high:
Estimate at three times of an expatriate’s annual salary plus the cost of relocation
(impacted by currency exchange rates and assignment location) $250,000-1million
The Expatriate Problem
9. U.S. Multinationals
Inability of spouse to adjust
Manager’s inability to adjust
Other family problems
Manager’s personal or emotional
immaturity
Inability to cope with larger overseas
responsibilities
Japanese Firms
Inability to cope with larger
overseas responsibilities
Difficulties with the new
environment
Personal or emotional
problems
Lack of technical competence
Inability of spouse to adjust
Reason for Expatriate Failure
12. Effect of expatriate failures
Damage to the firms reputation in the international context
Group Dynamics affected
Relationships between host parent countries may also be affected
Productivity of the foreign operations may go down.
Failures have profound effects on the expatriates by causing lowering
their self esteem and ego
13. According to the Selye’s (1976) General Adaptation Syndrome[GAS]
model, four stages of expatriate stress can be identified:
Pre-alarm Alarm Resistance Exhaustion
14. Pre-alarm
stage
• Knowing about the assignment
• Undergoing training like
• Cross-cultural training
• Language training
• Pre-departure training
• Job training
Alarm
stage
• Arriving
• Cultural shock
• Acceptance by the host country
• Language barrier
• Separation from family
• Unfamiliar people
Resistance
stage
• Tries to
adjust in
cross-
cultural
• situation
• Maintaining
relationships
with the
• parent
country
• Contacting
family
• Making
15. Exhaustion stage
Able to adjust (Distress)
Good performance
Increased productivity
Good inter personal relationships
Not able to adjust (Distress)
Dropping the assignment
Coming back to the home country
Low performance
Low productivity
16. Cultural adjustment: Cross cultural adjustment is adjustment of expatriate
with the job, host country nationals, and to general work and non work
environment
Tension between parent and host country work set-up
Communication problems: The possibilities for communication and
interactions are considerably enhanced if managers are proficient in the
language of the culture in which an expatriate is operating
Job-related stressors
17. Gender issues: Gender issue is a stressor particularly to women expatriates.
Women expatriates have to be more resilient and resourceful if they wish to be
successful in foreign cultures
Differences in Compensation: Substantial differences exist in the compensation
of expatriates at the same level in various countries
Quality of superior-subordinate relationship : Relationships between superiors
and subordinates who are from different cultures form the significant aspect of
multi-national organization effectiveness
Job-related stressors
18. Family issues: Adjustment of the expatriate spouse and family to host country
may be a potential problem affecting the expatriate and may even lead to
assignment failure
Dual-career couple: The expat ‘s spouse has to leave a good job in the home
country.
Psychological acceptance: The non- acceptance of the expatriate is a potential
stressor for an expatriate
Personal Stressors
19. 'Culture shock' refers to the process of coming to understand and adapt to
differences in culture manifest through daily interaction and situations.
The most common stages of culture shock one faces with relocation abroad
are:
Stimulation: the first stage of relocation is commonly full of hope and
excitement
Culture shock: The differences in behaviour combined with the stress of
adapting to a new daily routine leads to a dislike and criticism of the host
culture
Adjustment: After the initial settling-in period, an understanding and
empathy with the host culture starts to develop
Enthusiasm: The relocation is now a distant memory and the host country
becomes 'home'
21. Promoting interaction with the host country nationals: Interpersonal
contacts with the host country nationals teach the expatriate how to behave and
act during the assignment
Helping hand from HR professionals: HR professionals having an intimate
knowledge of host countries, their customs, language, cost of living, education
alternatives and spouse employment opportunities, etc., can help the expatriates
in overcoming the problems in the host country.
Testing the personality of the expatriate: Expatriate agreeableness, indication
of collaboration, sincerity, respect and empathy for others, may promote
showing tolerance and patience as well as solving problems responsibly
Selection of the candidates: Screening candidates for expatriate assignments
so as to “care enough to send only the best qualified,” both in the job
requirements, and in their being able to adjust to the host culture
22. Organizational Training strategies to cope with expatriates stress
Pre-departure training programs
Cross-cultural training before and after arrival in the foreign
country
Language Training
Job training and Strategic training
Coaching and Mentoring
23. Organizational support at the new locale: The host country organization should
provide the necessary support to the expatriate emotionally, physically and
psychologically.
Repatriation programs: A largely overlooked but critical and important issue in
the training and development of expatriates is to prepare them for re-entry into
their home country organization.
Coaching on career progression: The parent company should clearly explain the
expatriates the career value of the foreign assignment and discuss the career track
following the repatriation
Knowing the family circumstances: Thorough knowledge about the expatriate
family circumstances, commitments, and family adjustment capabilities
Proper compensation practices: Equalizing expatriate pay on a global basis to
reduce the substantial difference in the pay
24. Not being Over Excited: Expatriates should not be over excited of going
to foreign country.
Learning how to behave: Expatriates should thoroughly observe,
discretely inquire and should try to learn what principles are lying beneath
behaviors of the host country nationals which at first may appear to be
unusual.
Spouse support: Spouse support and adjustment can help the expatriate as
a great stress reliever
Exercising: Regular physical exercise, some practice of meditation and
relaxation techniques can help in relieving expatriate stress.
Recreation: Recreational activities like watching movies, listening to music,
etc. can be taken according to expatriates’ interest to relieve stress.
26. The time has come in IHRM to give more attention not only to the design and
content of expatriate training per se, but also the neglected evaluation of this
training and the development of interpersonal and management skills as well as
efficacy building and leadership effectiveness.
27. The most widely recognized and comprehensive approach is provided by
Kirkpatrick (1994). He suggests that all training programs should be evaluated on
four basic levels:
Kirkpatrick model
Reaction
(level 1).
Learning
(level 2).
Behavioral
assessment
(level 3)
Performance
results (level4)
28. Reaction
(level 1).
Reaction (level 1). Reaction measures are designed to assess the trainees’
opinions regarding the expatriate training program
•if the expatriates are not positive and enthused, there is
little chance for future benefit.
•It provides suggestions on improving future programs.
•Reactions can provide quantitative, easy to understand
data that the trainers can use to demonstrate the success
of the expatriate training
•Trainee reactions can provide trainers with information
that can be used to establish relative standards of
performance for the design and conduct of future cultural
training programs of expatriates.
Kirkpatrick model
29. Learning (level 2). Measuring learning in this second level of evaluation
means determining one or more of the following
• What knowledge did the expatriate learn?
• What attitudes and values were changed?
Behavioral assessment
(level 3).
It is one thing to get a favorable reaction and have
cognitive learning take place…………
…………..It is quite another to have a desired on-
the-job behaviors in the foreign culture actually
occur.
Kirkpatrick model
30. Performance
results (level 4).
Performance results
(level 4).
Evaluation of performance improvement measured by
outcomes such as productivity, retention, customer
satisfaction, and profits
Kirkpatrick model
31. Multisource
(360-degree)
feedback
Implementation of 360 degrees across cultures
•The process of growth and development in the workplace is ongoing.
Some cultures simply don’t subscribe to the same notion that feedback is valuable and can guide
manager development.
•Constructs measured, by 360-degree instruments are appropriate for most
workplaces and cultures.
It is important to consider measurement issues when taking an instrument to a different culture.
•It is both acceptable and valuable to ask bosses, peers, direct reports, and
customers for developmental feedback.
•Managers will accept results as accurate and truthful when the 360 data are
kept confidential and when the raters are guaranteed anonymity.
•Survey questionnaires as used in the 360 approach reliably and validly
measure individual differences.
32. Conclusion
To minimize adverse consequences associated with expatriation,
successful management of expatriation process need to be adopted with
the help of careful human resource management strategy such as selection,
training, compensation, etc.
It is also suggested that effective use of individual and organizational
strategies may reduce the possibilities of stress among expatriates.
At the organizational level, pre and post departure training, language
training cross-cultural training are needed to be implemented and they
should be regularly monitored.
At the individual level, expatriates should be supported by the family
and friends.
34. Background Information on the Organization
Brunt Hotels, PLC, owns more than 60 hotels throughout the United Kingdom.
They recently acquired a small hotel chain headquartered in France. Brunt’s chief
executive decided that half of the new hotels in France would be retained and
rebranded as part of the Brunt Hotels Group; the other half will be sold. This will
support Brunt’s strategic objective of growing the organization slowly to make
sure that new ventures are well supported and opened on time and on budget.
Brunt’s hotels are considered budget accommodations; they are functional, clean
and reasonably priced. Additional information about UK hotel standards is
available at
http://www.qualityintourism.com/content/pdfs/Standards/Budget%20Hotels%
Most guests stay for one to three nights and are a combination of business and
leisure travelers. The hotels are typically situated in downtown locations that are
easily accessible by mass transit. Tourists are attracted to these hotels in popular
visitor destinations where the many local attractions mean that they will not be
spending much time in their hotel rooms.
35. The organization has decided to use an ethnocentric approach and send
some of their existing UK-based managers to France to lead the
changeover of the new hotels and then manage them after they re-open. If
this new overseas venture is successful,
Brunt may decide to acquire other small hotel groups in other European
countries. The organization would like to own 150 hotels in the next five
years. Their 10-year plan is to own 300 hotels across Europe. This is an
ambitious target, so it is important that the organization finds an effective
formula to operate successfully in other countries
Background Information on the
Organization
36. The organization has never owned any hotels outside the UK before, and has
hired a team of independent management consultants to advise them on how to
proceed. They provided the consultants the following information during their
initial meeting:
A majority of their existing managers said they would like a chance to work
abroad.
None of their existing managers speak French fluently.
They will allow four weeks to rebrand the hotels. The new hotels must be
ready to open after that time.
They expect to recruit a large number of staff for the new French hotels,
because
more than 70 percent of the employees from the acquired organization left.
They will require their managers to be flexible and move between countries if
any problems arise.
37. Activity A (5 minutes)
Based on the information you have to date, what do you think the key priorities
should be?
Activity B (15-20 minutes, including presentation of ideas)
The hotel management asked you if they should look only at internal candidates
who are parent country nationals (PCNs) or recruit host country nationals (HCNs).
Group 1 believes that only PCNs should be hired.
Group 2 believes that only HCNs should be hired.
Present the advantages of the approach your group was allocated to the class.
Activity
