Effective International Human Resource Management

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Chapter 8

• Effective International Human Resource Management

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Learning Objectives

• Understanding why many expatriates fail in their
  foreign assignments
• Understanding how to reduce expatriate failures
• How to select the right expatriate
• Understanding how to find and develop global
  expatriate
• Show how to administer expatriate programs
• Understanding expatriate compensations policy

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Who Is an Expatriate?

• An ____________ sent abroad to manage a firms
  foreign _____________ is referred to as
  expatriate.

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why expatriates fail?

• These executives fail in their ______ assignments
  because of various reasons such as
• Adaptation Problem.
• Getting use to foreign countrys physical and
  ______ environments.
• Varying technical sophistication.

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why expatriates fail?

• Company-country conflicting objectives and
  policies.
• Overcentralization.
• limits the authority of expatriate in ______
  making.
• Gender - cultural biases against ______ in host
  countries.

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Why Expatriates Fail?

• Inadequate __________ programs or lack of
  repatriation policy.
• Repatriation problems result when the returnee
  feels that
• He or she has missed opportunities at home,
• Will not duplicate the living standard enjoyed
  abroad,
• Being judged poorly because of ______ behavior
  and.
• The skilled acquired abroad will not be utilized
  at _____.

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Pitfalls in the Human Resource Planning Function

• Poor management of human resources as lesser role
  assigned to human resource managers.
• Inadequate selection criteria for foreign
  assignments by placing total emphasis on _______
  skills and lack of relational skills.
• Failure to consider the family situation factor.
• Lack of adequate _______ for foreign assignments.
• Duration of assignment.
• Underutilization of women expatriates.

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Implications Of U.S., ________, And European
Expatriate Practices

• Top management must pay attention to the
  _________ HRM.
• Relational skills contribute heavily to
  expatriate failures, managers selecting
  expatriates need to pay more attention to this
  criterion.

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Implications Of U.S., Japanese, And European
Expatriate Practices

• Top management must sponsor rigorous training
  programs aimed to prepare _______ for foreign
  assignments.
• Top management needs to be _______ in foreign
  assignments.

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Implications Of U.S., Japanese, And European
Expatriate Practices

• MNCs must develop programs to attend to the needs
  and aspirations of expatriates.
• Managers should consider the ________ spouse and
  children.
• International enterprises need to use women in
  their foreign operations to a much ______ extent
  then they do now.

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How to Reduce Expatriate Failures

• Selecting the right expatriate is very essential.
• One criteria of selecting the right expatriate is
  finding out how _____ an individual gets along
  with his or her family.
• It is important to know why the candidate wants
  the foreign assignment.

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• Select only the candidates that show sign of
  _______ in overseas assignment.
• Provide adequate training.
• Set up support system.
• Assessing expatriates effectiveness potential.
• Expatriate managers must l______ well,
• Expatriate managers must be patient.
• Expatriate managers must have ______ for the
  locals.

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Pre-departure Orientation

• The followings components should be included in
  the pre-departure orientation of expatriates and
  their ______
• Cultural briefing
• Assignment briefing
• _______ requirements
• Language training

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Sources Of Global Expatriates

• _______ Operations
• Managers Currently on Foreign Assignment
• External Sources
• ________ Institutions

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EXPATRIATE SELECTION PROCESS
Can the position be filled by a local national?
Select local national and subject him or her to
training
yes
no
Indicate the degree of interaction with local
community required for successful performance on
the job.
low
Emphasis on task variables. Second question is to
ask whether the individual is willing to serve
abroad.
high
Is the candidate willing?
yes
Probably not suitable for position
no
Start orientation (moderate to low rigor)
Probably not suitable for position
indicate the magnitude of difference between the
two cultures
very similar
highly diverse
Emphasis on task variables
Emphasis on relational abilities factor. Family
situation factor must also be taken into
consideration.
Start orientation (moderate to high rigor)
Start orientation (most rigorous)
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Preparations for a Prospective Expatriate

• Some of the preparations for a prospective
  expatriate are, understanding of the corporate
  international ________ phase, pre-expatriation
  phase, expatriation phase and _________ phase.

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Expatriate Preparation Programs

• An expatriate may not be adaptable in a foreign
  culture if he or she demonstrates ________ of the
  self-oriented, other-oriented and perceptual. The
  corporations international environment.
• Pre-expatriation.
• Cultural briefing.
• Assignment briefing.
• Relocation requirements.
• ________ training.

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Expatriate Preparation Programs

• Expatriation.
• Keep the expatriate informed about ______
  operations and plans.
• Review and discuss the expatriates performance
  and career path.

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Expatriate Compensation

• Objectives of expatriate compensation policy.
• The policy should be _________ and fair in its
  treatment of all categories.
• It must work to retain expatriates where needs
  are the greatest.
• It should transfer the expatriates in the most
  cost-effective manner.
• Consistency with overall strategy and ________ of
  the organization.
• The compensation should serve to motivate
  employees.

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Expatriate Compensation

• Expatriate base salary.
• The conditions that force compensation policies
  to differ from those used for home-country
  expatriates include
• _______ and cost of living.
• Housing and school costs.
• Security and ________.

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EXPATRIATE COMPENSATION (Continued)

• Taxation issues of double taxation.
• Section 911 of _____ mitigates this for
  expatriates from U.S.
• U.S. Has double taxation avoidance treaties with
  many countries.

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EXPATRIATE COMPENSATION (Continued)

• Benefits issues to be resolved.
• Whether or not to ________ expatriates in
  home-country benefit programs?
• Whether companies have the option of enrolling
  expatriates in host-country benefit programs
  and/or making up the difference in coverage?
• Whether expatriates should receive home-country
  or host-country _____ _______ benefits?

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EXPATRIATE COMPENSATION (Continued)

• Allowances
• What is a fair __________ level for an
  expatriate?

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Who Are Global Managers?

• Global managers are _______ of executives who are
  ready to perform effectively in foreign
  assignments when and where needed.
• These managers can be tapped from _________
  operations, managers currently on foreign
  assignment, external sources, educational
  institutions.