TRAINING AND DEVELOPMENT OF

GLOBAL EXPATRIATES

FLOW OF THE PRESENTATION1. INTRODUCTION

•Staffing Policy

2. Managing expatriates (Keywords: Stress, Expatriate Stress,

Stressors.)

•Brief summary

•Stress Process in Expatriates

•Stressors in Expatriate Assignment

3. Training module for Expatriates

•the two types of strategies, which an organization may adopt in its training

module

And individual Coping Strategies

4 .Training evaluation framework for expatriates

•Implementation issues across cultures

•The Kirkpatrick model and the 360-degree feedback in expatriates

5. Case study

WHO IS AN EXPATRIATE ?

An expatriate (in abbreviated form, expat) is a person temporarily or permanently residing in a country and culture other than that of the person's upbringing or legal residence. The word comes from the Latin term expatriātus from ex ("out of") and ‘patria’ the ablative case of patria ("country, fatherland").

Host country nationals(HCN’s):Citizens of the country in which the organization's foreign subsidiary operates.

Parent country nationals (PCN’S):The citizens of the country in which the headquarters of the multinational are based.

Third country national (TCN’s):The citizens of a country other than the parent or host country.

CORPORATE CULTURE AND EXPATRIATE SELECTION

Corporate Culture “an organizational variable which may “mould and shape internal culture to particular ways and how to change culture, consistent with managerial purposes”

“a view of organizations as expressive forms, manifestations of human consciousness”.

Staffing policy:

Selecting individuals with requisite skills to do a

particular job.

Also as tools for developing and promoting corporate

culture.

Types of staffing policy:

Ethnocentric.

Polycentric.

Geocentric.

Staffing Policy

Ethnocentric

Key management positions filled by

parent-country nationals

Polycentric

Host-country nationals manage

subsidiaries, parent company

nationals hold key Headquarter

positions

Geocentric

Seek best people, regardless

of nationality

Types of Staffing Policy

Expatriate failure:

Premature return of the expatriate manager to his/her home

country

Cost of failure is high:

Estimate at three times of an expatriate’s annual salary plus

the cost of relocation (impacted by currency exchange rates

and assignment location) $250,000-1million

The Expatriate Problem

Recall Rate Percent Percent of CompaniesUS

Multinationals20 - 40% 7%10 - 20% 69

< 10 24European Multinationals11 - 15% 3%

6 - 10 38<5 59

Japanese Multinationals

11 - 19% 14%6 - 10 10

<5 76 Table 18.3

Expatriate Failure Rates

U.S. Multinationals

Inability of spouse to adjust

Manager’s inability to adjust

Other family problems

Manager’s 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

Reason for Expatriate Failure

Critical Challenges to Successful Relocations

Stress management in expatriates

The process The Stressors

Effect of expatriate failures

Damage to the firms reputation in the international

context

Group Dynamics affected

Relationships between host parent countries may also

be affected

Productivity of the foreign operations may go down.

Failures have profound effects on the expatriates by

causing lowering their self esteem and ego

STRESS PROCESS IN EXPATRIATES

According to the Selye’s (1976) General Adaptation Syndrome[GAS] model, four stages of expatriate stress can be identified:

Pre-alarm Alarm Resistance Exhaustion

STRESS PROCESS IN EXPATRIATES

Pre-alarm stage

• Knowing about the assignment• Undergoing training like• Cross-cultural training• Language training• Pre-departure training• Job training

Alarm stage

• Arriving• Cultural shock• Acceptance by the host country• Language barrier• Separation from family• Unfamiliar people

Resistance stage

• Tries to adjust in cross-cultural• situation• Maintaining relationships with the• parent country• Contacting family• Making friend

Exhaustion stageAble to adjust (Distress)

Good performanceIncreased productivity

Good inter personal relationships

Not able to adjust (Distress)Dropping the assignment

Coming back to the home countryLow performanceLow productivity

STRESS PROCESS IN EXPATRIATES

STRESSORS IN EXPATRIATE ASSIGNMENT

Cultural adjustment: Cross cultural adjustment is

adjustment of expatriate with the job, host country nationals,

and to general work and non work environment

Tension between parent and host country work set-up

Communication problems: The possibilities for

communication and interactions are considerably enhanced if

managers are proficient in the language of the culture in

which an expatriate is operating

Job-related stressors

Gender issues: Gender issue is a stressor particularly to

women expatriates. Women expatriates have to be more

resilient and resourceful if they wish to be successful in foreign

cultures

Differences in Compensation: Substantial differences exist in

the compensation of expatriates at the same level in various

countries

Quality of superior-subordinate relationship :

Relationships between superiors and subordinates who are

from different cultures form the significant aspect of multi-

national organization effectiveness

Job-related stressors

Family issues: Adjustment of the expatriate spouse and

family to host country may be a potential problem affecting

the expatriate and may even lead to assignment failure

Dual-career couple: The expat ‘s spouse has to leave a

good job in the home country.

Psychological acceptance: The non- acceptance of the

expatriate is a potential stressor for an expatriate

Personal Stressors

CULTURE SHOCK

'Culture shock' refers to the process of coming to understand and adapt to differences in culture manifest through daily interaction and situations.

The most common stages of culture shock one faces with relocation abroad are:

Stimulation: the first stage of relocation is commonly full of hope and excitement

Culture shock: The differences in behaviour combined with the stress of adapting to a new daily routine leads to a dislike and criticism of the host culture

Adjustment: After the initial settling-in period, an understanding and empathy with the host culture starts to develop

Enthusiasm: The relocation is now a distant memory and the host country becomes 'home'

Managing Stress Among Expatriates

Organizational Coping Strategies

Individual Coping Strategies

Managing Expatriates

ORGANIZATIONAL COPING STRATEGIES

Promoting interaction with the host country nationals:

Interpersonal contacts with the host country nationals teach the

expatriate how to behave and act during the assignment

Helping hand from HR professionals: HR professionals having an

intimate knowledge of host countries, their customs, language, cost of

living, education alternatives and spouse employment opportunities,

etc., can help the expatriates in overcoming the problems in the host

country.

Testing the personality of the expatriate: Expatriate agreeableness,

indication of collaboration, sincerity, respect and empathy for others,

may promote showing tolerance and patience as well as solving

problems responsibly

Selection of the candidates: Screening candidates for expatriate

assignments so as to “care enough to send only the best qualified,”

both in the job requirements, and in their being able to adjust to the

host culture

ORGANIZATIONAL COPING STRATEGIES CONTD..

Organizational Training strategies to cope with

expatriates stress

Pre-departure training programs

Cross-cultural training before and after arrival in

the foreign country

Language Training

Job training and Strategic training

Coaching and Mentoring

ORGANIZATIONAL COPING STRATEGIES CONTD..

Organizational support at the new locale: The host country

organization should provide the necessary support to the

expatriate emotionally, physically and psychologically.

Repatriation programs: A largely overlooked but critical and

important issue in the training and development of expatriates

is to prepare them for re-entry into their home country

organization.

Coaching on career progression: The parent company

should clearly explain the expatriates the career value of the

foreign assignment and discuss the career track following the

repatriation

Knowing the family circumstances: Thorough knowledge

about the expatriate family circumstances, commitments, and

family adjustment capabilities

Proper compensation practices: Equalizing expatriate pay

on a global basis to reduce the substantial difference in the pay

INDIVIDUAL COPING STRATEGIES

Not being Over Excited: Expatriates should not be over

excited of going to foreign country.

Learning how to behave: Expatriates should thoroughly

observe, discretely inquire and should try to learn what

principles are lying beneath behaviors of the host country

nationals which at first may appear to be unusual.

Spouse support: Spouse support and adjustment can

help the expatriate as a great stress reliever

Exercising: Regular physical exercise, some practice of

meditation and relaxation techniques can help in

relieving expatriate stress.

Recreation: Recreational activities like watching

movies, listening to music, etc. can be taken according to

expatriates’ interest to relieve stress.

Expatriate development

Development

Kirkpatrick model Multisource (360-degree) feedback

EVALUATION IN TERMS OF DEVELOPMENT

The time has come in IHRM to give more attention not only to the design and content of expatriate training per se, but also the neglected evaluation of this training and the development of interpersonal and management skills as well as efficacy building and leadership effectiveness.

The most widely recognized and comprehensive approach is provided by Kirkpatrick (1994). He suggests that all training programs should be evaluated on four basic levels:

Kirkpatrick model

Reaction (level 1).

Learning (level 2).

Behavioral assessment (level 3)

Performance results (level4)

Reaction (level 1).

Reaction (level 1).Reaction measures are designed to assess

the trainees’ opinions regarding the

expatriate training program•if the expatriates are not positive and

enthused, there is little chance for future

benefit.

•It provides suggestions on improving future

programs.

•Reactions can provide quantitative, easy to

understand data that the trainers can use to

demonstrate the success of the expatriate

training

•Trainee reactions can provide trainers with

information that can be used to establish

relative standards of performance for the

design and conduct of future cultural

training programs of expatriates.

Kirkpatrick model

Learning (level 2). Measuring learning in this second level of

evaluation means determining one or

more of the following• What knowledge did the

expatriate learn?

• What attitudes and values were

changed?

Behavioral assessment (level 3).

It is one thing to get a favorable reaction

and have cognitive learning take

place……………………..It is quite another to have a

desired on-the-job behaviors in the

foreign culture actually occur.

Kirkpatrick model

Performance results (level 4).

Performance results (level 4).

Evaluation of performance improvement measured by outcomes such as productivity, retention, customer satisfaction, and profits

Kirkpatrick model

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Implementation of 360 degrees across cultures

•The process of growth and development in the workplace is ongoing.

Some cultures simply don’t subscribe to the same notion that feedback is valuable and can guide manager development.•Constructs measured, by 360-degree instruments are appropriate for most workplaces and cultures.

It is important to consider measurement issues when taking an instrument to a different culture.•It is both acceptable and valuable to ask bosses, peers, direct reports, and customers for developmental feedback.

•Managers will accept results as accurate and truthful when the 360 data are kept confidential and when the raters are guaranteed anonymity.•Survey questionnaires as used in the 360 approach reliably and validly measure individual differences.

Conclusion

To minimize adverse consequences associated with expatriation,

successful management of expatriation process need to be

adopted with the help of careful human resource management

strategy such as selection, training, compensation, etc.

It is also suggested that effective use of individual and

organizational strategies may reduce the possibilities of stress

among expatriates.

At the organizational level, pre and post departure training,

language training cross-cultural training are needed to be

implemented and they should be regularly monitored.

At the individual level, expatriates should be supported by the

family and friends.

CASE STUDY !

Background Information on the Organization

Brunt Hotels, PLC, owns more than 60 hotels throughout the United Kingdom.

They recently acquired a small hotel chain headquartered in France. Brunt’s chief executive decided that half of the new hotels in France would be retained and rebranded as part of the Brunt Hotels Group; the other half will be sold. This will support Brunt’s strategic objective of growing the organization slowly to make sure that new ventures are well supported and opened on time and on budget.

Brunt’s hotels are considered budget accommodations; they are functional, clean and reasonably priced. Additional information about UK hotel standards is available at http://www.qualityintourism.com/content/pdfs/Standards/Budget%20Hotels%

Most guests stay for one to three nights and are a combination of business and leisure travelers. The hotels are typically situated in downtown locations that are easily accessible by mass transit. Tourists are attracted to these hotels in popular visitor destinations where the many local attractions mean that they will not bespending much time in their hotel rooms.

The organization has decided to use an ethnocentric approach

and send some of their existing UK-based managers to France to

lead the changeover of the new hotels and then manage them

after they re-open. If this new overseas venture is successful,

Brunt may decide to acquire other small hotel groups in other

European countries. The organization would like to own 150

hotels in the next five years. Their 10-year plan is to own 300

hotels across Europe. This is an ambitious target, so it is

important that the organization finds an effective formula to

operate successfully in other countries

Background Information on the Organization

The organization has never owned any hotels outside the UK before,

and has hired a team of independent management consultants to

advise them on how to proceed. They provided the consultants the

following information during their initial meeting:

A majority of their existing managers said they would like a chance to

work abroad.

None of their existing managers speak French fluently.

They will allow four weeks to rebrand the hotels. The new hotels must

be ready to open after that time.

They expect to recruit a large number of staff for the new French

hotels, because

more than 70 percent of the employees from the acquired organization

left.

They will require their managers to be flexible and move between

countries if any problems arise.

Activity A (5 minutes)

Based on the information you have to date, what do you think the key

priorities should be?

Activity B (15-20 minutes, including presentation of ideas)

The hotel management asked you if they should look only at internal

candidates who are parent country nationals (PCNs) or recruit host

country nationals (HCNs).

Group 1 believes that only PCNs should be hired.

Group 2 believes that only HCNs should be hired.

Present the advantages of the approach your group was allocated to the

class.

Activity