SUCCESS AND FAILURES FOR

EXPATRIATES
 EXPATRIATES AND DATA ON MNC’S
(2009)
 The success of international business operations mainly depends on expatriates

 In 1997, American multinationals had 150,000 expatriates stationed abroad and 83,000
employees of foreign companies worked in the United States.

 >> 31.3 million international workers globally

 >> worldwide sales by MNCs were over $11 trillion


Current rates continue to decline somewhat in both areas because of the global economic
downturn.

US Department of Commerce,
Bureau of Economic Analysis
 “HR has to be concerned with more than just
employee welfare. HR’s role, because of
globalization, has to become more strategic.”

Farndale, Paaluwe, 2005

 Globalization has elevated the importance of HRM in
developing organizations:

 “The HR function is realigning itself in response to this

process of cross function globalization (building new alliances
with these functions), creating new activity streams, and new
rules and skills required of the HR professional.”

Sparrow, Brewster,
Harris, 2004
 4 NEW ROLES FOR HR DUE TO
GLOBALIZATION
 1. function as a steward of human capital
2. to become a knowledge facilitator
3. to be a relationship builder and
4. to become a rapid deployment specialist with
emphasis on adaptability, tolerance, and a capacity to
learn

Leggnick,
Hall, 2002
 WHY THE INCREASING NEED FOR
INTERNATIONAL WORKERS?

 What’s to blame?

 Global shortages in population and a dearth of skills

among populations.

 Culture
 CULTURE

 Defined as “socially transmitted beliefs, behavior patterns

and values that are shared by a group of people” (Varner et
al., 2005. p.1)

 Influences the way people communicate with each other

 Influences how we negotiate business, contracts and

organize our business
STEPS FOR PREPARING TO FUNCTION
EFFECTIVELY IN ANOTHER CULTURE
 Understand own cultural orientation and “acceptable”
behavior within that cultural context
 Overcome the belief that one’s own self reference
criterion is universal and avoid judging culturally different
behavior negatively.
 We do not as individuals take the time to study our
culture indepth
 Expatriate needs to not only know his priorities but also
be familiar with the company’s priorities.
 Less wording
SELECTION >> PERSONAL QUALITIES THAT PREDICT
SUCCESS IN THE
INTERNATIONAL ENVIRONMENT

 >> Strong language skills

 >> An extensive cultural knowledge
 >> Positive personality traits
 >> A positive attitude towards other cultures
 >> Cross-cultural communication skills
(the new “norm”)
 >> Mature emotional regulation, such as coping ability
 WAYS TO ASSIMILATE
CULTURAL COMPETENCY
 Develop cultural relativism
--accept a point of view vs.
assuming something must be right or wrong
 Demonstrate inclusiveness

--incorporate perspectives from diverse points

of view
 Learn to value cultural differences
--consider cultural differences as positive vs.
as obstacles
 Expand one’s cultural intelligence (CQ)
--what don’t you know, that you don’t know?
DIVERSITY CHALLENGES INHERENT
IN INTERNATIONAL CULTURES
 →The Explicit culture –observable reality of the language, food,
homes, buildings, monuments, agriculture, shrines, markets, fashions,
and art.

 →Yet, another cultural layer—norms and values (these reflect deeper

layers of cultures, i.e., the norms and values of an individual or group)
a. Norms are the mutual sense a group has of what
is “right” and “wrong.” Norms can develop at the
formal level as laws or the informal level as social
control.
b. Values determine the definition of “good” or
“bad.” They are closely related to the ideals shared
by the group
 FOR AN INDIVIDUAL, AN EXPATRIATE
POSITION PROVIDES
 Opportunities for personal and professional development

 A higher salary (often comparative to the local cost of living,

do your research)

 A good life experience

 Greater employability for future assignments

 EXPATRIATE FAILURE
 Rates : 10% - 50% depending on the country

 Emerging countries are at higher risk than advanced

nations

 The U.S. – 30% - 40%

 Europe – 20%
REASONS FOR EXPATRIATE FAILURE
 Cultural adjustments
 Language differences
 Foreign Service hardship
 Length of assignment
 Schools
 Living Accomodations
 Health Care Access
 STAGES OF EXPATRIATE ADJUSTMENT
10
9
8
7
6
5
4
3
Satisfaction Scale

2
1
0
 STAGES

 Honeymoon – lasting 2 to 6 weeks

 Culture Shock – lasting 6 – 8 months

 Gradual Adjustment – lasting 1 – 2 years

 Basic Competence - 2 to 4 years

 Mastery – 5 to 7 years
 HOW SUCCESSFUL EXPATRIATION IS
MEASURED

 How effective is the expatriate during his/her stay?

 What knowledge has the expatriate gained and how the

company utilizes it?

 How long does the expatriate stay with the company after
repatriation?
 AREAS THAT DETERMINE EXPATRIATE
COMPETENCE
 Ability – can be trained
 Knowledge – can be trained (including language)
 Personality – more innate, difficult to manipulate
 Emotional – Coping ability

Developmental Goals for the Expatriate

 Focus on international business
 Increasing ability to function in another culture
 Increasing openness and flexibility
 Decreasing ethnocentrism
STEPS FOR SUCCESSFUL EXPATRIATION
 Develop comprehensive, culturally appropriate corporate
plans
 Establish clear realistic international objectives with
bicultural strategies for implementation
 Selection process
 Accurate and adequate information
 Communicate frequently and clearly
 Training and Orientation
 Support Services
 Strategic planning for re entry
 Re-entry support
 REPATRIATION
 "Expats repeatedly cite repatriation as the area of highest
dissatisfaction with respect to organizational policies.”
 REPATRIATION ISSUES
 Grasping Opportunity
 --The No. 1 issue for expatriates is career management
support.
 --Should involve the assignee in discussions regarding
possible or likely positions and opportunities to which
they might return.

 Keeping in Touch
 --Expats often come home to a company that has
undergone significant change.
 Reduce Reverse Culture Shock
 --”If they’ve adapted well in the host country, then ‘going
home’ is not really going home.”

 Give It Time
 --Don’t assume the repatriation is finished when the person
is back home and has started the new role.
 HR’S ROLE IN THE GLOBAL
ENVIRONMENT

 “HR, as a strategic partner, is becoming the new

“guardian of culture” because it oversees the
implementation of global corporate values in the global
corporate system”

Sparrow, et. al, 2003

 HR’S GLOBAL CHALLENGE
 “HR must develop robust global recruitment practices
while realizing that turnover will occur; ...must know the
business as well as HR practices;
...must tailor retention efforts to individual employee
needs;
 ...must know how business operates globally;
and
 ...must be accountable for retention.”

Lance Richards,
Kelly Services
Thank you for your interest.