Assignment Characteristics GreaterExpatriate Longer More Interaction MoreSuccess Duration Cultural and Complex orFactors Dis- Communica- Respon- similarity tion sible Job Requirements with LocalsProfessional/ High Neutral Moderate HighTechnicalSkillsRelational Moderate High High Moderate AbilitiesInternational High High High HighMotivationFamily High High Neutral ModerateSituationLanguage Moderate High High NeutralSkills
•TRAINING RIGOR• The extent of effort by trainees and trainers required to prepare the trainees for expatriate positions
•LOW RIGOR TRAINING• Short time period• Lectures• Videos on local culture• Briefings on company operations company operations
•HIGH RIGOR TRAINING• Lasts over a month• Experiential learning• Extensive language training• Often includes interactions with host country nationals
•EXHIBIT 11.4 SHOWSVARIOUS TRAININGTECHNIQUES AND THEIROBJECTIVES AS THE RIGOROF THE CROSS- CULTURALTRAINING GROWS
Techniques: Field trips to host country, meetings High with managers experiencedTraining in host country, meetings Rigor with host country nationals, intensive language training. Objectives: Develop comfort with host country national culture, business culture, and social institutions.
Techniques: Experiential learning exercises, role playing, Mid- simulations, case level studies, survivalTraining language training. Rigor Objectives: General and specific knowledge of host country culture, reduce ethnocentrism.
Techniques: Lectures, videotapes, reading background material. Objectives: Provide Low background information onTraining host country business and Rigor national cultures, basic information on company operations.
•CHALLENGES OF EXPATRIATE PERFORMANCE APPRAISAL• Unreliable data• Complex and volatile environments• Time differences and distance separation• Local cultural situations
•STEPS TO IMPROVE THE PROCESS• 1. Fit the evaluation criteria to strategy.• 2. Fine tune the evaluation criteria• 3. Use multiple evaluators with varying periods of evaluation
•EXHIBIT 11.6 Shows severalsources of information asuperior or the HRMprofessionals may use toevaluate an expatriatemanagers
Evaluation Sources Criteria PeriodsSelf evaluation Meeting objectives Six months and at the Management skills completion of a major Project successes projectSubordinates Leadership skills After completion of Communication skills major project Subordinate developmentPeer expatriate and Team building Six monthshost country manages Interpersonal skills Cross-cultural interaction skillsOn-site supervisor Management skills At the completion of Leadership skills significant projects Meeting objectivesCustomers and clients Service quality and Yearly timeliness Negotiation skills Cross-cultural interaction skills
•THE BALANCE SHEET APPROACH• Provides a compensation package that equates purchasing power
•BALANCE SHEET COSTS• Allowances for cost of living, housing, utilities, furnishing, educational expenses, medical expenses, club memberships, and car and/or driver expenses
DomesticAssignment Expatriate Assignment Expenses andExpenses and Balanced Spendable Income + AllowancesSpendableIncomeBase Salary = Base Salary Allowances as an incentive to take position, + foreign service premium, hardship pay, R&RTaxes = Taxes + Allowances to balance extra tax paymentsGoods and = Goods and ServicesServices Allowances to cover cost of living differences, + housing, children’s education, medical costs, automobile, recreation, home leave travelHousing = Housing Allowances for moving expenses, settling in + expenses, initial housing costs, and furnishing allowancesSpendable = Spendable IncomeIncome
•OTHER APPROACHES• Parent country wages everywhere• Wean expatriates from allowances• Pay based on local or regional markets• Cafeteria selection of allowances• Global pay systems
•THE REPATRIATION PROBLEM• Difficult for many organizations• "Reverse culture shock"• Expatriates must relearn own national and organizational culture• Includes whole family
•STRATEGIES FOR SUCCESSFUL REPATRIATION PROVIDE:• A strategic purpose for repatriation• A team to aid the expatriate• Home country information sources• Training and preparation for the return• Support for expatriate and family
•WOMEN EXPATRIATES: TWO IMPORTANT "MYTHS"• Myth 1: women do not wish to take international assignments• Myth 2: women will fail in international assignments because of the foreign cultures prejudices against local women
•SUCCESSFUL WOMEN EXPATRIATES• Foreign not female • emphasize nationality not gender• The womans advantage • strong in relational skills • wider range of interaction options
•IHRM ORIENTATIONS• Ethnocentric• Polycentric• Regiocentric• Global
•IHRM ORIENTATION AND MULTINATIONAL STRATEGY• Early stages of internationalization = ethnocentric IHRM• Multilocal strategies = ethnocentric or regiocentric• Regional strategy = closer to the global
• International strategy = ethnocentric or polycentric IHRM• Transnational strategies = a global IHRM
•CONCLUSIONS• HRM functions• IHRM challenges• Expatriate managers• The role of women in multinational organizations• Multinational strategies and IHRM orientations