c2b_default

EXPATRIATES AS INSTRUMENT IN INTERNATIONAL MANAGEMENT

EXPATRIATES AS INSTRUMENT IN INTERNATIONAL MANAGEMENT

EXPATRIATES AS INSTRUMENT IN INTERNATIONAL MANAGEMENT

18
0.0 (0)

Fichier Détails

Cartes-fiches 18
Langue English
Catégorie Gestion d'entreprise
Niveau Université
Crée / Actualisé 28.05.2016 / 01.06.2016
Lien de web
https://card2brain.ch/box/expatriates_as_instrument_in_international_management
Intégrer
<iframe src="https://card2brain.ch/box/expatriates_as_instrument_in_international_management/embed" width="780" height="150" scrolling="no" frameborder="0"></iframe>
Étudier

Expatriate

Definition

Someone sent abroad by their company

Why are expatriates important?

• Important mechanism to coordinate the international activities of an MNC…
• …to create coherence in the company…
• …create a common understanding and common culture.

Three Staffing options for subsidiaries

  • Parent country nationals (PCNs) -->EXPATRIATE
    • Residents of the international business’s home country
  • Host country nationals (HCNs)
    • Residents of the host country
  • Third-country nationals (TCNs) -->EXPATRIATE
    • Not citizens of the firm’s home or host country

Ethnocentric staffing model

  • PCNs (Parent-Country) for higher-level foreign positions
  • Expat PCNs most effective representing HQ views

Polycentric staffing model

  • HCNs know the local market best
  • Fewer cultural problems
  • Less expensive than ethnocentric

 

But:

  • limited opportunity to gain experience
  • gap can form between host country managers and parent country managers

Geocentric staffing model

Hire the best person available, regardless of where that individual comes from

Objectives of Expatriates (5)

  • Supporting subsidiary operations
  • Coordination mechanism
  • Knowledge Transfer
  • Incentive in the career path of executives
  • Development of manager

Necessary Skills and Abilities for Expatriates to do the job and to work in a Foreign Location

  • Job:
    • Technical
    • Functional
    • Managerial
  • Location:
    • Adaptability (Tolerance for ambiguity, Tolerate multiple perspectives)
    • Location-specific skills
    • Personal characteristics

Other Success Factors of expatriate assignment

  • Can freely choose to accept or reject the assignment
  • Have a realistic preview of the assignment
  • Have a realistic expectation of repatriation assignment
  • pre-departure training

What is the consequence of high expats costs?

  • short trips
  • Paying expatriate wages only for a limited time, then adjust to host-country payment
  • Dropping bonuses or premiums for overseas assignments and replacing them with lump-sum premiums (Pauschale)

Four different phases of in Acculturation

  1. Honeymoon
  2. Culture Shock
  3. Adaption
  4. Stability

What could culture shock lead to?

  • May lead to feelings of fear, helplessness, irritability, and disorientation

Compensation packages for expatriates

  • Cost-of-living allowance (Relocation cost, rental)
  • Tax equalisation system (Potential tax consequences)
  • Hardship premium
  • Legal environment (Visa)
  • Expatriates earning more than host-country nationals
  • Expatriates out of sight of top-management at HQ

Types of training programms

  • Environmental briefings
  • Cultural “orientation”
  • Cultural assimilators
  • Sensitivity training
  • Field experience
  • Language training

goals-->

• Mentally prepare expat (and family) for the move
• Remove some of the “unknown”
• Provide opportunity to ask questions to reduce anxiety

Social learning theory

People learn by observing others

What are possible reasons for repatriation?

• Predetermined time is up
• Desire to have children educated in home country
• Unhappy overseas
• Cost of expatriate too high
• Poor performance / failure

What is the primary cause of expatriation failure?

  • Inability of the managers and/or their spouse and family to adjust to the new locale

Potential reason for reverse culture shock

  • Home office job lacks the high degree of authority and responsibility that expatriates had overseas
  • Impression that the company does not value international experience
  • Loss of connection to HQ employees
  • Potential change or elimination of old job; no adequate positions
  • Worsening of financial situation

Étudier