20 Questions
What is the common experience of many expatriates when they return home?
Discovering that there are no suitable positions available and that privileges enjoyed abroad are not offered in their home country.
What is the key to addressing frustration among repatriated managers?
Proper planning of both expatriation and repatriation.
Why is it important to involve family members in the repatriation process?
To help them readapt to their home environment and provide support during the transition.
What is a challenge in measuring a manager's performance in international operations?
Multifaceted influences on business activities in foreign countries make it difficult to evaluate performance.
What is the limitation of relying solely on quantitative data in performance evaluation?
It may not fully reflect the actual achievements on site.
What is the purpose of 360-degree feedback programs in international companies?
To gather appraisals from a manager's superior and junior staff members.
Why may feedback from junior staff in Africa not reflect the actual situation?
In some cultures, such as in Africa, it is uncommon to evaluate superior managers, so feedback from junior staff may not be accurate.
What is crucial to include in the evaluation of an expatriate manager's performance?
Comments from managers from the host country.
What is a key challenge in compensating expatriate managers?
Ensuring an appropriate salary and fair distribution of compensation packages commensurate with duties abroad.
Why is it important to involve an experienced expatriate manager in the evaluation of a manager's performance?
To provide an objective understanding of the specific challenges in the host country.
What kind of lifestyle changes do expatriate managers often experience when they return home?
A decrease in privileges and a lower salary, including a lack of recognition for their experience and skills gained abroad.
Why is it essential to plan the repatriation process carefully?
To prevent managers from feeling lost and undervalued when they return home and to ensure they can apply their skills and experience effectively.
What can companies do to support returning managers and their families?
Organize meetings with colleagues to discuss their experiences abroad, and allow time for managers to readapt and take care of their families.
What is a limitation of evaluating a manager's performance solely based on quantitative data?
It may not fully reflect the actual achievements on site, due to the complex influences on business activities in foreign countries.
Why is 360-degree feedback important in international companies?
It gathers appraisals from multiple sources, including superiors and junior staff, to provide a more comprehensive evaluation.
What is a challenge in evaluating a manager's performance in a foreign country?
Home country managers may lack insight into the local cultural, social, and economic context, leading to inaccurate assessments.
Why should host-country managers be included in the evaluation of an expatriate manager's performance?
They can provide valuable insights into the specific challenges and complexities of the host country, ensuring a more accurate assessment.
What is a key consideration in determining the compensation package for expatriate managers?
Ensuring a fair distribution of compensation that reflects the various duties performed abroad and the costs of living in the host country.
Why is it important to involve an experienced expatriate manager in the evaluation of a manager's performance?
They can provide valuable insights into the challenges of working in a foreign country and help to ensure a more accurate assessment.
What is a key benefit of involving family members in the repatriation process?
It helps them readapt to the changes associated with returning home and ensures a smoother transition for the entire family.
Study Notes
Managing Expatriates at Royal Dutch/Shell
- Royal Dutch/Shell is a global petroleum company with 100,000 employees, 5,500 of whom are expatriates living and working in over 100 countries.
- The company recognized the importance of international mobility of its workforce and conducted a survey to identify the concerns of expatriate employees and their spouses.
- The survey revealed that the top five concerns were:
- Separation from children during their secondary education
- Negative impact on a spouse's career and employment
- Failure to recognize and involve a spouse in the relocation decision
- Failure to provide adequate information and assistance regarding relocation
- Health issues
Characteristics of International Human Resource Management
- International human resource management is concerned with an organization's activities, procedures, and structures that help to employ workforces effectively.
- Factors that influence international human resource management include:
- Labor markets
- Culture
- Legal systems
- Economic systems
- Examples of how these factors differ between countries:
- Labor markets: high unemployment in Spain, skills shortage in Germany
- Culture: differences in work-life balance between Scandinavian countries and Germany
- Legal systems: stricter enforcement of equal opportunity recruitment in the UK than in Bulgaria
- Economic systems: differences in compensation practices between the UK and Central Europe
Prevailing Mindsets for Staffing Policies
- Ethnocentrism: a relatively strong home country orientation, where top management positions are filled by employees from the company's home country.
- Polycentrism: a strong host country focus, where local managers are hired for subsidiary operations.
- Geocentrism: an understanding of global contexts, where the best candidate for a position is hired, regardless of their nationality.
The Global Manager
- An expatriate manager is defined as a "citizen of one country who is working abroad in one of the firm's subsidiaries".
- Expatriate managers require a 'global mindset', which includes:
- Self-orientation: self-esteem, self-confidence, and mental wellbeing
- Others-orientation: ability to connect with local staff and stakeholders
- Perceptual ability: ability to understand cultural differences and adapt to foreign cultures
- Cultural toughness: ability to adapt to foreign cultures and tackle challenges associated with living and working in certain countries
Expatriate Success and Failure
- Expatriate success depends on the manager's ability to adapt to foreign cultures and tackle challenges associated with living and working in certain countries.
- Expatriate failure can be caused by:
- Inability to fit into the new environment
- Problems of spouses in adapting to the new environment
- Family issues
- Lack of competence with regards to new role and responsibilities
- Personal issues### Expatriate Management
- The selection process for expatriate managers should assess four key dimensions: self-orientation, others-orientation, perceptual ability, and cultural toughness.
- Key factors to review during the selection process include:
- Self-esteem and self-confidence
- Mental wellbeing and ability to connect with people from other cultures and levels
- Ability to acquire basic knowledge of a foreign language and understand/appreciate foreign cultures
- Ability to overcome frustration caused by cultural and behavioral differences
- Ability to settle into uncustomary cultural environments and cope with obstacles
- The selection process should include psychological testing and may take 2-3 days to complete.
- It is essential to include spouses and, to some extent, other family members in the assessment process to evaluate their ability to adapt to a new environment.
Training and Management Development
- Training and management development instruments should be applied continuously to ensure smooth integration of managers and their families into foreign operations.
- Three important types of training should be offered to expatriate managers and their spouses:
- Cultural training to familiarize them with the host country's culture, history, religion, behavior, and traditions.
- Language training to provide a basic knowledge of the local language.
- Practical training to introduce them to the host country and help them settle in comfortably.
Performance Assessment
- Measuring a manager's performance in international operations is challenging due to multifaceted influences on business activities in foreign countries.
- Solely relying on quantifiable data may lead to evaluative results that do not fully reflect actual achievements on site.
- 360-degree feedback programs can be used to gather appraisals from a manager's superior and junior staff members.
- Including comments from managers from the host country in the evaluation process can help overcome problems concerning expatriate manager performance appraisal.
Compensation
- The remuneration of expatriate managers in international companies is difficult to calculate and must take into account the cost of living in the host country.
- Expatriate payments typically comprise a basic salary equivalent to the one earned in the home country plus additional payments for relocation efforts and living costs abroad.
- Compensation packages should be commensurate with the various duties performed abroad and cover living costs, housing, and other expenses incurred abroad.
Managing Expatriates at Royal Dutch/Shell
- Royal Dutch/Shell is a global petroleum company with 100,000 employees, 5,500 of whom are expatriates living and working in over 100 countries.
- The company recognized the importance of international mobility of its workforce and conducted a survey to identify the concerns of expatriate employees and their spouses.
- The survey revealed that the top five concerns were:
- Separation from children during their secondary education
- Negative impact on a spouse's career and employment
- Failure to recognize and involve a spouse in the relocation decision
- Failure to provide adequate information and assistance regarding relocation
- Health issues
Characteristics of International Human Resource Management
- International human resource management is concerned with an organization's activities, procedures, and structures that help to employ workforces effectively.
- Factors that influence international human resource management include:
- Labor markets
- Culture
- Legal systems
- Economic systems
- Examples of how these factors differ between countries:
- Labor markets: high unemployment in Spain, skills shortage in Germany
- Culture: differences in work-life balance between Scandinavian countries and Germany
- Legal systems: stricter enforcement of equal opportunity recruitment in the UK than in Bulgaria
- Economic systems: differences in compensation practices between the UK and Central Europe
Prevailing Mindsets for Staffing Policies
- Ethnocentrism: a relatively strong home country orientation, where top management positions are filled by employees from the company's home country.
- Polycentrism: a strong host country focus, where local managers are hired for subsidiary operations.
- Geocentrism: an understanding of global contexts, where the best candidate for a position is hired, regardless of their nationality.
The Global Manager
- An expatriate manager is defined as a "citizen of one country who is working abroad in one of the firm's subsidiaries".
- Expatriate managers require a 'global mindset', which includes:
- Self-orientation: self-esteem, self-confidence, and mental wellbeing
- Others-orientation: ability to connect with local staff and stakeholders
- Perceptual ability: ability to understand cultural differences and adapt to foreign cultures
- Cultural toughness: ability to adapt to foreign cultures and tackle challenges associated with living and working in certain countries
Expatriate Success and Failure
- Expatriate success depends on the manager's ability to adapt to foreign cultures and tackle challenges associated with living and working in certain countries.
- Expatriate failure can be caused by:
- Inability to fit into the new environment
- Problems of spouses in adapting to the new environment
- Family issues
- Lack of competence with regards to new role and responsibilities
- Personal issues### Expatriate Management
- The selection process for expatriate managers should assess four key dimensions: self-orientation, others-orientation, perceptual ability, and cultural toughness.
- Key factors to review during the selection process include:
- Self-esteem and self-confidence
- Mental wellbeing and ability to connect with people from other cultures and levels
- Ability to acquire basic knowledge of a foreign language and understand/appreciate foreign cultures
- Ability to overcome frustration caused by cultural and behavioral differences
- Ability to settle into uncustomary cultural environments and cope with obstacles
- The selection process should include psychological testing and may take 2-3 days to complete.
- It is essential to include spouses and, to some extent, other family members in the assessment process to evaluate their ability to adapt to a new environment.
Training and Management Development
- Training and management development instruments should be applied continuously to ensure smooth integration of managers and their families into foreign operations.
- Three important types of training should be offered to expatriate managers and their spouses:
- Cultural training to familiarize them with the host country's culture, history, religion, behavior, and traditions.
- Language training to provide a basic knowledge of the local language.
- Practical training to introduce them to the host country and help them settle in comfortably.
Performance Assessment
- Measuring a manager's performance in international operations is challenging due to multifaceted influences on business activities in foreign countries.
- Solely relying on quantifiable data may lead to evaluative results that do not fully reflect actual achievements on site.
- 360-degree feedback programs can be used to gather appraisals from a manager's superior and junior staff members.
- Including comments from managers from the host country in the evaluation process can help overcome problems concerning expatriate manager performance appraisal.
Compensation
- The remuneration of expatriate managers in international companies is difficult to calculate and must take into account the cost of living in the host country.
- Expatriate payments typically comprise a basic salary equivalent to the one earned in the home country plus additional payments for relocation efforts and living costs abroad.
- Compensation packages should be commensurate with the various duties performed abroad and cover living costs, housing, and other expenses incurred abroad.
Learn about the management of expatriates at Royal Dutch/Shell, a global petroleum company with a diverse workforce of over 100,000 people across 100 countries. Understand the challenges and opportunities of international mobility.
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