Global Human Resource Management Chapter 15

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Global Human Resource Management Chapter 15
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Chapter 15 - Global Human Resource Management
? The Expatriate Problem Reason for
Expatriate Failure Expatriate Selection Training
for Expatriate Managers Repatriation of
Expatriates ? Performance Appraisal
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The Expatriate Problem

• Expatriate failure
• Premature return of the expatriate manager to
  his/her home country.
• Cost of failure is high
• Estimate - 3X the expatriates annual salary plus
  the cost of relocation (impacted by currency
  exchange rates and assignment location).

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Reason for Expatriate Failure

• US Multinationals
• Inability of spouse to adjust.
• Managers inability to adjust.
• Other family problems.
• Managers 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.

?European Multinationals Inability of spouse
to adjust.
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Expatriate Selection

• Self-orientation
• Strengthen self-esteem, self-confidence and
  mental well-being.
• Others-orientation
• Enhance ability to interact with host-country
  nationals.
• Perceptual ability
• The ability to empathize - understand why people
  in host-country behave the way they do.
• Cultural toughness
• How well an expatriate adjusts to a particular
  posting tends to be related to the country of
  assignment.

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Training for Expatriate Managers

• Cultural
• Seeks to foster an appreciation of the
  host-countrys culture.
• Language
• Can improve expatriates effectiveness, relate
  more easily to culture and
  fostered a better firm image.
• Practical
• Ease into day-to-day life of the
  host country.

1. Culture 2. Language 3. Practical
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Repatriation of Expatriates
Didnt know what position they hold upon return.
Firm vague about return, role and career
progression.
Took lower level job.
Leave firm within one year.
Leave firm within three years
10 20 30 40 50 60
70
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Performance Appraisal

• Problems
• Unintentional bias.
• Host-nation biased by cultural frame of
  reference.
• Home-country biased by distance and lack of
  experience working abroad.
• Expatriate managers believe that headquarters
  unfairly evaluates and appreciates them.
• Many believe a foreign posting does not benefit
  their career.

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Guidelines for Performance Appraisal

• More weight given to on-site managers
  evaluation.
• Former expatriate who served in the same location
  should assist home-office manager with the
  evaluation.
• If foreign on-sight manager preparing evaluation,
  home-office manager consulted before evaluation
  is finalized.