Beruflich Dokumente
Kultur Dokumente
Dr Subhash Gupta
Objectives
We will address the following issues:
The myth of the global manager
The debate surrounding expatriate failure
Factors moderating intent to stay or leave the
international assignment
Selection criteria for international assignments
Dual-career couples
Gender issues
Dr Subhash Gupta 2
Why international staffing?
Motives behind international staffing are of two types:
Company motives
Fill- positions
Management development
Organizational development
Individual motives
To gain new job experience.
Better compensation.
Sense of obligation to company.
Possibility of advancement upon return.
Improved life style abroad.
Exposure to new culture.
To shoulder greater professional responsibility.
Desire to escape from personal problems at home.
Restricted career possibilities within parent company
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International recruitment: Some
issues
Stereotypes, ignorance, assumptions and
general lack of cross-cultural competencies
can mean that the right people may not always
be given the opportunities they deserve.
Equipping staff with the skills to be able to
identify and manage cross- cultural differences
in interviews is vital. Cross cultural differences
in areas such as body language,
communication, self-presentation, gender, eye
contact, questioning and privacy can influence
an intercultural interview
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International recruitment: Some
issues
Cross-cultural factors play a significant role while
recruiting abroad. Hiring the right people is a
tough task, particularly when they are located
thousands of miles away. Selectors need to be
trained in and sensitized to the candidates’
culture. The cultural differences must be taken
into account while recruiting an individual.
Otherwise, good candidates may be rejected only
because of an unaware interviewer and hiring
managers, and lack of effective communication
between the interviewer and interviewee
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Recruitment & Selection
US favors open form of recruitments and selection
based on open and public advertisements, hiring is
generally based on competence and qualifications
More traditional societies rely on social status, family
background and ties, wealth, education, race,
religion, or connections to military or ruling elite
– Need to understand these factors
Collectivist societies also place emphasis on
background factors such as family, school attended
etc.
– The major rationale is to find someone who will be
loyal and fit the organization
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Some Country Examples
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Research Evidence for Recruitment
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Selection criteria and techniques
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Factors in Expatriate Selection
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Mendenhall and Oddou’s Model
Self-oriented dimension
Perceptual dimension
Others-oriented dimension
Cultural-toughness dimension
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•The self-oriented dimension reflects the degree to
which the expatriate expresses an adaptive concern for
self-preservation, self-enjoyment, and mental hygiene.
The perceptual dimension reflects the expertise the
expatriate possesses in accurately understanding why
host nationals behave the way they do.
The others-oriented dimension reflects the degree to
which the expatriate is concerned about host-national
co-workers and desires to affiliate with them.
The cultural-toughness dimension reflects a mediating
variable that recognizes that acculturation is affected by
the degree to which the culture of the host country is
incongruent with that of the home country.
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Using Traits and Personality Tests to
Predict Expatriate Success
Although some tests may be useful in suggesting
potential problems, there may be little correlation
between test scores and performance
Most of the tests have been devised in the United
States, thus culture-bound
In some countries, there is controversy about the
use of psychological tests ( different pattern of
usage across countries)
Use of personality traits to predict intercultural
competence is complicated by the fact that
personality traits are not defined and evaluated in
similar way in different cultures
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The global manager
Myth 1: There is a universal approach to
management.
Myth 2: People can acquire multicultural
adaptability and behaviors.
Myth 3: There are common characteristics
shared by successful international
managers.
Myth 4: There are no impediments to mobility.
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Review: Roles & Tasks of
International Management
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Skills of a Global Manager
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The Employment Relationship
The nature of the employment relationship
Relational: broad, open-ended and long-term
obligations
Transactional: specific short-term monetized
obligations
The condition of the relationship
Intact: when employee considers there has
been fair treatment, reciprocal trust
Violated: provoked by belief organization has
not fulfilled its obligations
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The Dynamics of the Employment
Relationship
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Likelihood of Exit
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Organizational Commitment
Affective component
Employee’s attachment to, identification with
and involvement in, the organization
Continuance component
Based on assessed costs associated with
exiting the organization
Normative component
Employee’s feelings of obligation to remain
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Why consider the psychological
contract?
Nature, location and duration of an
international assignment may provoke
intense, individual reactions to perceived
violations
Expatriates tend to have broad, elaborate,
employment relationships with greater
emphasis on relational nature
Expectations and promises underpin this
relationship
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Current Expatriate Profile
Category PCN (42%) HCN (16%) TCN (42%)
Source: based on data from global Relocation Trends: 2002 Survey Report, GMAC Global Relocation Services,
National Foreign Trade Council and SHRM Global Forum, GMAC-GRS 2003.
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Expatriate Failure
Definition: Premature return of an expatriate
Under-performance during an international
assignment
Retention upon completion
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Reasons for Expatriate Failure
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Reason for Expatriate Failure
US Firms Japanese Firms
Inability of spouse to Inability to cope with
adjust larger overseas
responsibilities
Manager’s inability to Difficulties with the new
adjust environment
Other family problems Personal or emotional
Manager’s personal or problems
emotional immaturity Lack of technical
Inability to cope with competence
larger overseas Inability of spouse to
responsibilities adjust
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Costs of Expatriate Failure
Direct costs: Costs vary
Airfares according to:
Associated Level of position
relocation expenses Country of
Salary and benefits destination
Training and Exchange rates
development Whether ‘failed’
Averaged $250,000 manager is replaced
per early return by another
expatriate
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Indirect Cost of Expatriate Failure
Damaged relationships with key
stakeholders in the foreign location
Negative effects on local staff
Poor labor relations
Negative effects on expatriate
concerned
Family relationships may be affected
Loss of market share
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Expatriate failure:
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Causes of Expatriate Assignment Failure
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The Phases of Cultural Adjustment
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Phases of Cultural Adjustment:
Effects of Culture Shock on Adjustment
7
6 Phase 4:
Phase 1: Mastery
5.5
Degree of Adjustment
Tourist /
Honeymoon
Phase 3:
Pulling Up /
Adjustment
Time in Months
Expatriate Adjustment Stages
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Source: GMAC Relocation Services, used with permission.
The Phases of Adjustment
The U-Curve is not normative
The time period involved varies between
individuals
The U-Curve does not explain how and why
people move through the various phases
It may be more cyclical than a U-Curve
Needs to consider repatriation
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EXPATRIATES CULTURAL SHOCK
LEVEL OF CULTURAL
PHYSICAL DIFFERENCES
DIFFERENCES DISORIENTATION
STRESS
UNEASE
REACTIONS
THE THE
THE LOCALIZED
“COLONIALIST” COSMOPOLITAN
EXPAT EXPAT
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Factors Moderating Expatriate
Performance
Inability to adjust to the foreign culture
Length of assignment
Willingness to move
Work-related factors
Psychological contract/employment
relationship
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International Assignments: Factors
Moderating Performance
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Transfer archetypes
Free agents:
Expatriates who
Expatriates who
High see themselves
“Go Native”
as
Dual Citizens
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Source: Black & Gregersen (1992). Serving two masters: Managing the dual
allegianc
e of expatriate employees. Sloan Management Review, 34, 61-71.
The Dual Allegiance of Expatriate Managers
Free Agent Often have superior international capa- Often leave with little warning
bilities (e.g., language, negotiation) Replacement costs may be significant
Often somewhat less costly than traditional May serve self-interests more than
expatriates company interests
Go Adjust well and quickly to local culture May fight global initiatives
native Usually effective in local environment, May be slow to implement directives from
including interactions with employees, headquarters
customers, suppliers, etc. Likely to leave firm after repatriation
Heart at Quick to implement directives from Adjusts poorly and slowly to local culture
Home headquarters and environment
More likely to stay with firm after Likely to inappropriately implement
repatriation directives from the parent organization
Dual Citizen Adjust well and quickly to local culture Requires serious thought and commitment
Usually effective in local environment from the company to develop into dual
Facilitates the coordination of global citizen
Are a rare breed and are attractive to
initiatives
other firms who may try to steal them
Responsive to directives from head-
quarters away
Dr Subhash
Source: Black & Gregersen Gupta
(1992). 40
Serving two masters. Sloan Management Review, 34, 61-71.
Heart at home
12% expatriates fall in this type
Allegiance to host country firm is low
Allegiance to parent firm is high
Committed towards the company
Determined to achieve the target
Going native
15% expatriates fall in this type
Allegiance to host country firm is high
Allegiance to parent firm is low
Empathetic towards host country culture
Willing to communicate and mix with local people
Dual citizens
32% expatriates fall in this type
Allegiance to host country firm is high
Allegiance to parent firm is high
Open-minded and goal-oriented
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The above-mentioned typology clearly indicates the following:
Dual citizens are most effective and committed. They are most
effective in balancing the job demands with role clarity.
An expatriate, over-committed to home organization (heart at
home), will have difficulty to adopt the host country practices and
will not be able to manage host country managers, effectively.
If an expatriate is over-committed to the host country organization
(going native), overall integration, coordination and control
becomes difficult within the MNC.
The largest group of expatriates falls into the category of free
agents, who have low commitment for both the host and home
country organizations.
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Solutions to the Dual-career Challenge
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Summary
Key issues affecting recruitment and selection
for international assignments. We have covered:
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Summary (cont.)
Cultural adjustment and other moderating factors
affecting expatriate intent to stay and performance.
Individual and situational factors to be considered in
the selection decision.
Evaluation of the common criteria used revealed the
difficulty of selecting the right candidate for an
international assignment and the importance of
including family considerations in the selection
process.
(cont.)
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Summary (cont.)
Dual-career couples as a barrier to staff mobility,
and the techniques that multinationals are utilizing
to overcome this constraint.
Female expatriates and whether they face different
issues to their male counterparts.
It is clear that, while our appreciation of the issues surrounding
expatriate recruitment and selection has deepened in the past 20 years,
much remains to be explored.
The field is dominated by US research into predominantly US samples
of expatriates, although there has been an upsurge in interest from
European academics and practitioners.
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Summary
It is also apparent that staff selection remains critical.
Finding the right people to fill positions, particularly
key managers – whether PCN, TCN or HCN – can
determine international expansion.
However, effective recruitment and selection are only
the first step.
We will explore in the next chapter that maintaining
and retaining productive staff are equally important.
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Summary
Corporate philosophy on recruiting and selection
Selection criteria and issues of concern
Local and home countries’ policies on foreign labor
Variations in national labor law and labor markets
Inter-company networking
Intra-company arrangement
Career assistance programs
Training and continuous adaptation
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Summary (cont.)
Will the factors affecting the selection decision be similar for
multinationals emerging from countries such as China and
India?
If more multinationals are to encourage subsidiary staff to
consider international assignments as part of an intra-
organizational network approach to management, we will need
further understanding of how valid the issues discussed in this
chapter are for all categories of staff from different country
locations.
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