Professional Documents
Culture Documents
Expatriate Trai and Dev
Expatriate Trai and Dev
Expatriate Trai and Dev
9-1
Introduction
[In the new millennium], the caliber of the people will be the only source of competitive advantage.
Allan Halcrow, Personnel Journal
Of the top 100 UK firms surveyed by Cendant International Assignment Services, 63 reported failed foreign assignments.
- www.expat.FT.com
9-2
9-3
Ethnocentric/PCN
Advantages: PCNs familiar with company goals, products, technology, policies and procedures. Disadvantages: lack of development of local managers (impacts moral and commitment) and poor adaptation and lack of effectiveness of expatriates Used when: inadequate local management, early stages of internationalization, centralized approach to globalization, close communication and coordination with HQ is needed.
2006 Prentice Hall 9-4
Polycentric/HCN
Advantages: less expensive to hire a local than to create an expatriate, local managers can help with sensitive political issues and some countries may require it. Disadvantages: difficulty of coordinating with HQ, conflicting loyalty of local, HQ managers do not get valuable experience
9-5
In a regiocentric staffing approach, recruiting is done on a regional basis say within Latin America for a position in Chile.
2006 Prentice Hall 9-6
9-10
9-11
9-12
Training Techniques
Area studies, that is, documentary programs about the countrys geography, economics, sociopolitical history, and so forth Culture assimilators, which expose trainees to the kinds of situations they are likely to encounter that are critical to successful interactions Language training Sensitivity training Field experiences exposure to people from other cultures within the trainees own country
9-13
9-14
9-15
9-17
Compensating Expatriates
Compensation is a crucial link between strategy and its successful implementation
Must be a fit between compensation and the goals of the firm
9-19
Compensating Expatriates
Salary Local salary buying power and currency translation, as compared with home salary; bonuses or incentives for dislocation Taxes Equalize any differential effects on taxes as a result of the assignment Allowances Relocation expenses; cost-of-living adjustments; housing allowance for assignment and allowance to maintaining house at home; trips home for family; private education for children Benefits Health insurance; stock options
2006 Prentice Hall 9-20
9-21
9-23
Personal problems:
Social adaptation problems Loss of status and standard of living Financial problems
2006 Prentice Hall 9-24
Looking Ahead
Chapter 10 Developing a Global Management Cadre
Preparation, Adaptation, and Repatriation Global Management Teams The Role of Women Working within Local Labor Relations Systems
9-25
Return
2006 Prentice Hall 9-26