methods for employee selection and socialization certainly reduced the impactof operathg 帆 a different cul

while job rotation practices weteam methods were substantiall

stitutional environment. However,similaI･ tdjusted′ a

those in Japan′ problem-solvhg

d compensation was comparable

Mastermg ExpatrlatWn 137

to local rather than Japanese norms･ In the case of plants located h the UnitedStates′ the progressive transfer and adaptation led to levels of performance

similar to those in Japan･Probably no other forelgninvestment site has received more coverageinthe

media and in academic literature than NUMMI-a joint venture created by Gen-eral Motors and Tbyota in 1982 to manufacture a small car on the site of a closedGM plant in Fremont, California･48 The box HTransferring the Toyota ProductionSvstem to NUMMI" focuses on the transfer of Toyota's manufacturing systemto Fremont･ Many in the US automobile industry expected that the transferwould fail, assuming that Japanese manufacturing methods were too deeply de-

pendent on Japanese culture･ However, the venture was an instant success, andNUMMI became the US leaderinquality and productivitywithin three years.While NUMMI′s case may be exceptional′ many companies attempt to

replicate their domestic work environment in forelgn locations･ Replication ofHR practices from the home country organization is an important element ofsuch efforts.

MASTERING t≡XPATRIATION

The use of expatriates is as old as intemational business; because of this′ the

international HR profession has historically been the domain of relocation spe-cialists, consultantsincompensation and benefits, and experts oninternationaltaxation･ In the academic literature, until recently, intemational HRM was alsosynonymouswith studies of expatriation･ Today the emphasis of internationalHRM has changed dramatically･ Nevertheless′ the effective management of

expatriation-Or more broadly of intemational transfers-remains one of thefoundations for the implementation of global strategy･

The Evolution of Expatriate ManagementExpatriation has been a tool of organizational control since the early stagesof civilization･ In ancient Rome (see the box 〟Holding the Roman Empire

Together"), aswith the Dutch and English trading houses that pion?ered inter-national trade in the 16th and 17th centuries′ the art of developlng trusted

representatives to manage distant subsidiaries often spelled the differencebetween success and failure in overseas colonization･ In the early modern era ofexpatriation after World War II, forelgn business was usually run by aninterna-tional division that supervised exports′ licensmg′ and subsidiaries abroad･ The

main role of corporate HR was to facilitate the selection of staff for forelgnpostings, finding employees familiarwith the company's products, teclmology,organization, and culture, who were at the sametime amenable to the constraintsof working abroad･Typical parent country employees stationed abroad operated like viceroys-

direc血g daily operations′ supeⅣ1Smg the transfer of know-how′ communka血g

138　cHAPTER 4･ Achwving Global Integratwn

corporate policies′ and keepmg the home office informed about relevant deve1-

opmentsintheir asslgned territories･ Assignments were decided on an ad hoebasis′ Occasionally supported by crash courses in language and forelgn Culhre･

Since forelgn aSSlgnmentS Often meant being at a distance from the politics ofcareer progression in the parent company′ all sorts of fhancial incentives were

used to make forelgn pOSthgs attractive･During this period′ the notion of 〟expatriate′′ brought to mind a middle-

aged′ male executive dispatched from a first world headquarters to a third

world subsidiary･ In fact′ this stereotype was not true then′ and it is even less

so today･ Most intemational transfers were to economically advanced coun-triesI Today, the countrieswith the highest population of resident expatriatesare the United States, China, andthe United Kingdom･ Table 4-3 providesanoverview of some characteristics of today′s expatriates′ based on a compre-

hensive survey of 180 mostly North American and European multinationalsin2009･ And as wewill discuss later, the expatriate population isincreaslnglydiverse in its ethnic orlglnS, gender, and age, as well as in the roles expatriatesare expected to perform･

Understanding the Expatriate Phenomenon

Before looking in detail at specific HR practices associated with internationaltransfers, we briefly review the motives that drive expatriation, and examine thecontroversy over whether expatriate failure really is as serious a problem as it issometimes argued･

TABLE 4-3･ A Portrait of ち:xpatriates

Mastermg Expatrlation 139

A 2009 su-ey profiled expatriates in 180 multinationals from the Americas (50%)′

モurope′ the Middle East, and Africa (49%), andAsia Pacific (1%).

･ 18% of the asslgnmentS Were expected to be less than one year, 55% one to three

years′ 20% more than three years′ and 7% permanent･

● 20% of the expatriates were women･

. 86% were accompanied by a spouse･

. 30% of the spouses were employed before but not during the asslgnment′ 13% were

employed during but not before the assignment, and lO% were employed bothbefore and during the asslgnment.

｡ 49% had children with them on the asslgnment･

Other findings:

･ 57% of the expatriate assignments were to/from the home country of themultinational.

･ 33% of the companies expected an increase in total expatriate population′ 25% a

decrease.･ The most frequent expatriate locations were China, the US, and the UK.･ The most common asslgnment Objective was fillhg a managerial or technkal skills

gap′ followed by building management expertise･･ The most critical challenges were asslgnment costs, finding candidates, controlling

policy exceptions′ and career management･

507[rCe Brookfield GlobalRelocat10n Services (2009), "Global Relocation Trends 2009 Survey Report" (www.brookfleldgrs com)･

The Motives for ExpatrI'ationMuch of the literature on expatriation focuses oninternational asslgnmentS Of par-ent (or home cotntry) employ

plored仇e prlnCIPalexpatriates are dispatchedfirst is simply toji'll positionlhcal or managerial skills･abling high potentialindiv

road for three

article, Edstr6m and Galbraith ex-ents･53 They proposed thatoverlappng reasons･ The

that camot be staffed localle second is to support mauals to acqulreinternati0

because of a lack of tech-agement development′ en-

al experience･ The thirdreason is organizational develonational operations though no

ent-that is, the control d coordination of inter-informal social networks.54

learn mg-driveninternationalassignments, and there is emplrical verification for this distinCtion･55 Traditionalexpatriate jobs fit mainly into the former category: employees who are dis-patched abroad to fix a problem or for reasons of control. On仙e other hand′more and more companies recognlZe that cross-border mobility is a potentiallearnlng tool,increasing the number of assignments in which the primary driveris individual or organizational 1earnlng･ Many asslgnmentS combine both ele-ments′ but in most cases it is clear which of the two dominates.

In addition, expatriates differinthe time they spendinan assignment abroad･Many assignments are long-term, often lasting two to four years･56 others are

140　cHAPTE尺4: Ac71ieving Global Integratu)n

FIGURE 411 The Purpose of Expatriation: Demand-Driven vs･ Lea-ing-Driven

CORPORATE UDTR AGENCY Control/knowledgetransfer 妊UdTﾄﾔT蕋

PROBLEM XuDﾄHuD舐 SOLVⅠNG 廼U(uDTR

Den and-dri Yen Leamlng-driven

Assignment purpose

short-term, less than one year, linked to a specific task or need･ Figure 4-1 putsasslgnment length and purpose together into a framework for understandingthe nature of expatriate roles･

h most cases′ expatriates are asslgned abroad for a relatively long period of

time as agents of the parent firm in order to accomplish a variety of tasks relatedto operations and/or oversight of the subsidiaries･ Here the demand for theirservices is driven prlmarily by headquartersedge or practices･ The expatriates serve a corp

In other cases′ the demand for expatriates

or problem-solving needs, and the length of the

the transfer of knowLrate agency ole.

y shorトterm start-up[ is determined by the

time it takes to address the task･ We call this a problem-Solmng role･ Historically,most expatriate assignments Were either corporate agency or problem solving;in both cases′ the expatriate had knowledge and competencies that were not

available locally･Now′ With the development of local managerial and professional capabili-

ties, there is less demand for expatriate assignments tO fill a local skill gap･ At thesame time, companies face anincreaslng need to developglobal coordination ca-pabilities, boostedinpart by mobility across borders･ The focus of these compe-tence development asslgnmentS is on organizational andindividual learning ratherthan deploying Skills or transferring practices from other parts of the multina-tional. International asslgl-entS are powerful development opporturdties fortheindividual expatriate (we discuss thisfurtherinChapter 8), and extensive useof expatriates helps createinterpersonal networks that facilitate collaborationandknowledge sharing acrossmits (there is more about thisinChapter 10)･

Finally, a rapidly growing type Of expatriation is short-term leamlng assign-ments of young high potential professionals who move across borders prlmarily

Masterlng Expatriation 141

for the purpose of building experience and developlng their careers157 These jobs

generally last less than a year and may lnVOlve rotation across several countriesor even reg10nS･ In a number of firms, such asslgnmentS are becoming anintegral part of career development plammg for young professionals and man-agers･58 A particular category is shorトterm transfers of managers and profes-

sionals from forelgn Subsidiaries to headquarters for trainlng and development

purPOSeS･While employees take up expatriate positions for different reasons and

lengths of time′ many companies still deal with expatriates as if they were a

homogeneous group placed abroad for agency reasons･ If distinctions are made′

they are based on family situation or hierarchical level･ As we review the exten-siヽre research on expatriation′ it is important to bear in mind that the concepts′

emplrical observations′ and practical recommendations of most studies are

generic and therefore fail to acknowledge the differences that exist betweenqualitatively different expatriate roles･

studying Expatriatl'on･･ WJ7at ls Failure ･ZMuch research on expatrlation has focused on analyzmg the causes of failure inoverseas asslgnmentS, recommending HR practices that would help organiza-tions to select, develop, and retaincompetent expatriates･59 In contrast, practitionerwork has emphasized compensation issues′ an area h which there is little

academic research.Until recently, atypical study on any topic lillked to expatriation was framed

bv an introduction about the high cost of expatriates and the high frequency ofassignment failure, especially in American multinationals160 However, whilethe direct costs of relocating an expatriate are real′ there seem to be no studies

that have emplrically linked failure rates directly with company or subsidiary

performance･In this context′ there has been no shortage of references to high expatriate

failure rates′ With claims

But does the emplrical elng but unambiguous ∩

(that is′ early returns of t

idence suppoIt seems thatexpatriate to

′′massive (mis)quotations′′ f a handsome dating back to the 1960S･

a third of expatriations are aborted･61these claims? The answer is a surprlS一

persistent myth of high failure ratese home country) has been created byof articles about US multhationals′

rates appear to be considerably lower･For instance, the 2009 Brookfield survey63 reported that 7 percent of expatriatesreturned earlywithout having completed their assignments, and other studieshave reported similar figures･641t is conceivable that the exaggeration of expatriate 〟failure'′ may have

slowed down the adoption of some useful recommendations･ When companiescompare their failure rateswith the alarming average" presentedinsome text-′′

books′ their situation does not look too bad･ Why spend resources on what does

not seem to be broken?However, is "premature retum" an adequate reflection of expatriate failure7

One can argue that expatriate failure should continue to be examined′ but uslng

142　cTIAPTER 4,･ AchieVmg Global Integration

other measures･ It may be far more damagmg for awho fails to perform adequately stays until completiment. If underperformance in the new job is hcluded

∩ of the overse

the result of poor selection or adaptation-failure rateshigher･ 65

Recently′ researchers′ attention has shifted f

on intercultural adjustment-how well do expatrlng ln a forelgn environment? Indeed, one canvias an extreme manifestation of poor adjustment′ an

adjust to

xpatriateS aSSlgn-either as

allure to a focus

orking and liv-he sense of recall′

to be positively related to expatriates′ job satisfaction and work performance･66

However, from a corporate perspective it may be even more important to assessexpatriate "success" directly,with measures such as time to proficiency, the timethat it takes t｡ master a new role′ or indeed assessments of overall job perfor-

mance.67 For instance′ One American survey showed that nearly a third of expa-

triates who stayed in their positions did not perform to the expectations of theirsuperiors･68

Managlng tnternational TransfersMaking an expatriate assignment a Success for the individual, the family, andthe firm requlreS paymg attention to many factors′ from the time of initial se-

lection until repatriation･ A starting point is the recognition that expatriation isa process, not an event･ This process can be broken downinto a set of phases:

･ Selecting expatriates･･ Preparation and orientation･･ Adjusting to the expatriate role･･ Managmg the performance of expatriates･･ compensation and rewards･･ Repatriation･

We will discuss each of these activitiesinthe Hexpatriate cyclew separately,although nahrally they are closely linked (expatriate performance managementand compensation are covered in more depth in Chapter 9)･ The problems oflater phases have to be anticipated earlier-for example′ repatriation has to be

taken into account at the selection phase′ while the purpose of preparation is to

facilitate role adjustment･

Selecting Expatriates

surveys show that it is essential for firms to pay attention to technical expertiseand domestic track record,with someindication that European multinationalsgive additional weight to language skills and international adaptability･69 Theselection process is often informal and ad hoc′ characterized by what Harris and

Brewster label the 〟coffee machine′′ system･7D candidates are likely to be known

personally to the senior managersinthe parent company, and the real selectiondecisions tend to be madeininformal discussions JJby the coffee machine･"

Mastering Expatriation　143

There are few proper discussions of the selection criteria; the position is seldomamounced openly (Or when it is′ it is already clear who is the preferred person);

and there is little formal assessment of the person chosen･71 This is clearlyinad-equate′ and there is broad academic agreement that orgaIdzations should make

stronger efforts to develop仇eir selection routines･ What does research say

about血e characteristics of successful expatriates?

CHARACTERISTICS OF SUCCtSSF:UL. EXPATRIATES. Researchers have found alarge number of factors to be important for successful expatriation･ One cross-cultural textbook identified 68 dimensions′ 21 0f which were deemed highly

desirable,72 while another review identified 73 s女ills necessary for cross-culhral

learnlng･73 1f one adds up all these characteristics′ the ideal expatriate is close to

superhuman! Most of the key factors, however, can be groupedinto the follow-1ng Categories:

･ Professional and technical competence･･ Relationship and communication abilities.･ Cultural sensitivity andflexibility･･ Self-efficacy and tolerance for ambiguity･･ Family factors･74

Appropriate professional and technical competence is a prerequisite for most in-temational asslgnmentS･ Even in cases when the expatriate is not expected to beable to carry out certain tasks immediately, the person must have the relevanttrainlng and experience to lean on the job･A meta-analysis of 66 studies on expatriate adjustment and performance

concluded that relational s女ills were the strongest predictor of intemational

adjustment･75 Relationship and communication abilities help the expatriate buildclose interpersonal contacts that improve collaboration and give血e person

access to local knowledge and the personal feedback necessary for successfulwork performance･76

Cultural sensitivity andjlexibility refer to the expatriate′s ability to understand

and respond to differences between countries and situations･ Expatriates who arenonevaluative when interprethg the behavior of forelgnerS are more likely tolearn′ adjust′ and perform well･ Research on cultural sensitivity and flexibility

has found both to be positively associated with expatriate performance･77There is evidence from several studies that self-eHicacy78 and tolerance for am-

bt'guity79 can help expatriates adjust and perform well on their asslgnmentS. Theformer refers to an expatriate′s belief in his or her own ability to act and perform･

Individuals with a healthy measure of self-Confidence are more likely to act andlearn from the outcomes of their actions･ Intemational assignments Often put ex-

patriates in situations where they need to have a high tolerance for ambiguityand an ability to cope with stress･The adjustment and support of the family emerge as one of the strongest

predictors of expatriate adjustment･80 These also feature consistently as themain factor influenclng eXpatriates′ decisions to return prematurely from their

aSSlgnmentS･

144　cHAPTER 4: AchleUmg Global Integration

The relevance of particular traits and skills depends on the role the expatriateis expected to assume･ Clear managerial qualifications and proven leadershipskills′ together with relevant professional skills′ are the essential foundation for

agency-type assignmentsI Expatriatesinagency roles shouldalso be able toimprovise and fhd new solutions in response to unexpected changes′ impart

confidenceintheir own abilityto solve problemsindifficult situations, andmotivate all members of the organization to cooperate･ For learnmg-orientedasslgnmentS,incontrast, relationship abilities and cultural awareness may bemore important′ as these are the keys to accesslng new knowledge･

How do international companies respond to these recommendations? Theemphasis is clearly on enlarglng the pool of potential candidates forintemationalasslgnmentS beyond persons from the home country of the multinational andon making sure that the intemational track attracts those with the best potentialto succeed in the firm. Assessments for intemational asslgnment are becommgclosely linked to the overall evaluation of an employee′s potential and are also

increaslngly rigorous ･AssESSMENT TOOLS. So far, only a minority of multinationals rely on any

kind of standardized tests and evaluations′ including psychological profiling′

cultural proficiency tests′ or family readiness evaluations;81 but there is no shorト

age of expatriate selection tools for companies interested h formal assessmentmethods′ though not all are well validated･ Some desirable expatriate traits′

such asintercultural adaptabilityand willingness to commmicate, can be assessedusmg standard psychometric tests･ Some companies use formal assessments toevaluate candidates only after they have been identified for an intemationalasslgnme叫Others screen all college graduates for future success as 〟global

managers･′′

When formal assessment is used′ it is argued that it should not be applied

to screeIung Out unsuitable candidates･82 Instead′ the results should provide the

employeewith objective feedback･ This allows the potential expatriate (andfamily) to consider carefully all the factors that may influence the success of theasslgnment′ tO COnSult experts on how to deal with problematic areas′ or to de-

cline the asslgnment･However, by far the most common selection method is simply to interview

the potentialcandidate･ Appropriately structuredinterview techniques can in-crease effectiveness･83 For instance′ Nokia involves cross-cultural psychologists

･･ininterviews during the selection process･ Ideally, peoplefrom the intendedhost unit should also be involved.

Many experienced intemational firms send potential expatriates on a preas-slgl1-ent Orientation visit･ This helps the local hosts to evaluate the candidate′s

fit with the environment′ and the candidate can review me job and location be-

fore agreelng･ These visits can preempt costly surprises later, and may be valu-able even after both sides agree to the asslgnment･ Free timewith the familywillbe needed on arrival′ before starting the new job･ This minimizes the stress of di-

vidhg attention between family and work during the demanding period of set-tlinginto a new job and getting to know colleagues and the customer network･

Mastering Expatriation 145

WHAT ABOUT THE FAMTLY? Family considerations have a critical impact onan individual's willingness to relocate and the outcome of the asslgnment. Thedecisions of American managers to relocate were found to be influenced by theirspouses′ feelhgs about intemational relocation′ by their own attitudes toward

movlng m general′ by the number of children at home′ and by the employer′s

transfer policies･ One of the major reasons Why people are reluctant to relocateis their children′S schooling･84

Virtually all research studies highlight the importance of family well-being,including spouse and children･ The lack of consideration of this′ in Westem CUL

tures at least′ emerges as one of the most significant explanations of expatriate

failure･85 The stress of a new job in a new culture′ combined with stress on the

family front, puts people underintense pressure, and the likelihood of effectiveadjustment is greatly reduced･The implication? Whenever possible′ select a family′ not a person･ Not

surprlSlngly, a number of international firms involve the candidate's spouse, ifnot the whole family,inthe process of assessment and counseling, particularlyin predeparture trainlng･86Research shows that when firms actively seek spouses′ oplnions of the

asslgnment′ they are more likely to adjust to living in the new culture･87 〟Buying

off′′ the family to galれ acceptance Can be shorトsighted′ as a temporary mcrease

in standard of living can make a successful repatriation more difficult･

-S lT OKTO SAY NOf We have pointed out that a properly executed assessmentcan provide a candidatewith feedback before making the final decision onwhether to accept the asslgnment･88 But what happens if the potential expatri-ate declines the offer?The answer varies across firms･ In some′ where management considers in-

ternational mobility an integral part of the employment relationship′ a refusal

could mean the end of a promlSlng Career･ For junior staff h some intemationalBritish firms′ or in Japan in the not-so-distant past′ expatriate assignments were

an inherent component of executive development-the issue was not if′ but

when･89 Tales of hardships endured when the boss called on the second day ofthe honeymoon were part of the lore･ However, it is important to note that theseexpectations were clearly commuIlicated to staff before they ]olned theCOmpany･

There is a strong case to be made for the principle that anindividual shouldnot be penalized for declining a job, especially if acceptance would involve

perceived hardship for仙e family･ Lack of commitment or desire to work inter-nationally onlyincreases the likelihood of failure･ However, Since companies tryto ensure that senior executives haveinternational experience, some degree ofin-temational mobility is fast becoming a necessary prerequisite for career success.

Preparing for an AssignmentThere is strong agreement about the need toinvest in thorough train.ng and

predeparture orientationinboth the academic and practitioner literature･90 Earlyplammg and trainmg are important for the growmg number of companies

146　cHAPTER 4.･ Achieving Global Integration

whereinternational experience is a key componentinmanagement develop-ment･91 0fferhg predeparture and arrival support is also a good way to showthat the company cares about expatriates and their families･Insufficient commitment to expatriate trainmg and development is one of

the most common criticisms leveled at HR practice h multinational companies･Surveysindicate that most companies offer some kind of cross-cultural trainlngto at least some expatriates and their spouses･ According to the 2008 GMAC sur-vey, 39 Percent of the companies offered cross-cultural trainlng for all asslgn-ments, 45 percent for some, and 59 percent for certain countries only･ Training

programs are more often organized for expatriates from the parent companythan for people from other countries･92 Furthermore′ the programs are seldom

mandatory; in reality, many.expatriates receive no predeparture training･Let us focus on certain lmpOrtant questions about expatriate trainmg and

development･ What kind of expatriate training is desirable? When should train-mg take place? Is language competence essential? And agaln′ What about the

expatriate′s family?

WHAT KIND OF TRAlNING! Expatriate train1ng has long focused on cross-cultural issues-the greater the cultural distance from the host country and themore social interaction the job involves′ the more important this is.93 Tわday there

are abundant training tools in this domain, including cultural briefings, books,videos′ case studies′ cross-cultural simulations′ and Web sites･ But not all prepa-

ration takes place in a classroom-there are preasslgnment Visits′ 〟shadowmg′′

visits while the soon-to-be expatriate is stillinhis or her previous job, coachingby an experienced manager, and open dialogue on key issues that emerge dur11ng the selection process･94The right kind of cross-cultural trahlng lS important; a poor program can

have a negative impact on expatriate adjustment and performance if it strength-ens cultural stereotypes･ No one trahlng methodology will be universally ap-propriate-the preparation for a European plant manager who is to bedispatched to China is bound to be different from that of a Japanese bank traineeon the way to New York･ The trainmg should be customized to match the needsof the expatriates and血eir families･

WHEN SHOULD TRAIMNG TAKE PLACE! Some companies start this process along time before departure′ to ensure thorough preparation･95 Others argue

persuasively that trainmg about the host culture is best linked to the expatriate′S',　experience and conducted after the asslgll-ent begins: the predeparture orien-

tation is kept brief and practi〔al′ and more complex culhral issues are left for

later･ Early trainlng may build stereotypes′ whereas real assimilation involves

understanding the subtle differences within a culture′ something that comes

onlywith experience･ However,from a practical viewpoint many expatriates′

especially those in executive positions′ are too busy to attend a formal trainlng

program after the start of their asslgnmentS･ Individual reaLtime coaching maybe the best solution, albeit an expensive one･96 without company commitmentand a specific trainlng plan built into the workload′ it will be difficult to fhd

time for any formal learning during the asslgnment･

Mastermg Expatriat10n 147

Some multinationalsinvolve the receivlng Subsidiary ln Supporting newlyarrived expatriates･ Intel has a 〟buddy system′′′ where local peers are appointed

as ad hoe trainers and cross-cultural interpreters for their forelgn COlleagues･The company also offers trainlng tO managers Who are about to receive anexpatriate･97 Expatriates who have access to host country mentors havedemonstrated greater adjustment to their work and greater interaction withhost country nationals ･98

ls LANGUAGE COMPETENCE ESSENTIAL? Everyone would agree that knowl-edge of the local language is beneficial｣)ut is it a 〟must′′′ desirable′ or not es-

sential? The answer depends on the nature of the job･ English is rapidlybecommg the company language for many expatriate jobs that are focused oninternal cross-border control and coordination･ Local language proficiency maynot be as critical for those asslgnmentS･ However, when the asslgnment requlreSextensive interaction with local customers or local employees who may notspeak English or any other global 〟Office language′′′ the ability to speak the local

language may be essential･Accumulated research evidence suggests that language fluency helps

expatriates develop interpersonal relationships and adjust to living overseas･However, no clear relationship has been found between language ability andwork adjustment with the notable exception of no-ative English-speakingexpatriates on asslgnmentS in English-speaking countries･990ur own experience suggests an additional dimension to the language is-

sue. Often the effort and commitment shown by expatriatesintrying to learnand use the local language counts for far more than their proficiency in it･ An ef-fort to learn shows respect for the local culture, and that is appreciated any-where in the world.

pREPARING THE FAMILY･ The expatriate's family, or at least the spouse, de-serves the same attention and preparation as the expatriate･ The spouse is typi-cally more exposed to the local cul山re than the expatriate′ and leamlng the local

language may be even more important for him or her･ Again′ leamlng Opportu-

nities after the start of the asslgnment may be more valuable than predeparturetrainlng′ especially as the spouse is unlikely to have the same immediate job

constraints.

Adjusting to tl7e Expatriate Jhle

VVtlen People move to an unfamiliar envirorunent they have to lean to adjust tonew behaviors′ norms′ values′ and assumptions･ Most people are familiar with the

notion of culture shock. Althoughindividual experiences vary, this is fairly often aU-shaped process of adjustmentinwhich aninitial honeymoon stage of excite-ment′ stress′ and adven山re leads to a depressive downswmg′ a phase of shock′

frustration, and uncertaintyabout how to behave･ Ideally, this heralds an upswingof learning and adaptation･ Diggingfurtherinto culture shock, Black and othershave spelled out three dimensions of cross-cultural adjustment (defined as thedegree of psychological comfort associatedwith living and workinginthe hostcountry)-adjustment to work′ general adjustment′ andinteraction adjustment･100

148　cflAPTER 4: AchleVmg Global Integration

The first dimension is adjustment to work in the new environment･ If the jobis unclear, if there is inl1erent COnflict in the role, and if there is little discretionin the work′ adjustment is likely to be difficult･ Some companies schedule an

overlapwith the outgoing jobholder to ease some of these strainS･ In the glob-ally integrated firm′ adjustment to work may be the easiest aspect of adjusト

ment′ because of similarities in procedures′ policies′ and tasks across the firm･

The second dimension is adjustment to the general enm'ronment-reactions tohouslng, Safety, food, education, transportation, and health conditions･ Thesedifficulties increase with cultural distance･ Companies try to minimize the

problems through houslng and educational allowances･ Previous intemationalexperience, effective preparation for both expatriate and family, and spendingtime with other expatriates before the asslgnment may facilitate this aspect ofadjustment･

The challenge of adjustment to interaction with local nationals is generally themost difficult for the expatriate and the family･ Behavioral norms′ pattems of

communication′ ways of dealhg with conflict′ and other aspects of relation-

ships may be different in the new culture, creating frustration or even anger,which may in tum be counterproductive･ Each individual′s adjustment is

linked to the quality of the support network inside the host country, as well asto time spent with other expatriates before the asslgnment and to links with thehome Office.

Family adjustment matters･ To facilitate this, Honda has "family centers" inOhio and Tokyo to helpwith the cultural adaptation process･ h addition, fami-lies of American employees transferred to Japan are "adopted" by Japanese fam-ilies with similar characteristics (for example′ children of me same age) ･ Mentors′

who will keep the expatriate informed of changes in the home organization′ are

asslgned to each expatriate before departure･These adaptation challenges are greatly helped by　investment in

predeparture feedback and trainlng･ Nevertheless, there are limits to what anorganization can do･ Much depends on the expatriate'S personality, motivationto be transferred abroad′ and willingness to learn from the new environment･

The ultimate indication of cross-cultural adjustment is the ability to feel at homein a forelgn Culture without rejecting one′s own roots･101

BALANCING MUIJlPLEALLEGIANCES･ One element of the adjustment processis finding the right balance between potentially conflicting alleglanCeS tO the

･･ parent firm and to the foreign OPeration･ Black and his colleagues have outlined

four generic patterns of expatriate commitment: free agents′ those who leave

their hearts at home′ those who go native′ and those with dual allegiances (see

figure 4-2)･102Free agents are marked by low alleglanCe tO both the parent and the local

firm･ They are committed to their careers･ They do not expect to retum home′ ei-

ther because they understand that their careers in the parent firm have alreadyreached a plateau′ Or because they see their international experience as increas一

mg their value on the external market･ Some free agents may do fine in an is0-1ated affiliate, and companies undergoing rapid internationalization may need

Mastering Expatriation 149

FIGURE 412 The Dual Allegiance of Expatriates

Expatriateswho 埜 G&FW7v seethemselVesas 免V fWF FREEAGENTS 薄ﾄT %E4 D ﾔR

EXpatriateswho 廼 G&FW7v 6VWF ﾗ6S fW6 2 "GONATⅠVE" 濡D､ ﾄ8uEHuE､T

Allegiance to parent抗rm

source二 Adapted from SI Bla〔k′ H･ Gregersen′ and M･ Mendenhall′ Global A5SlgnmentS･ SuccessPlly Expatr7atmg and

尺epatrlating International Managers (Sam Franeisco Jossey-Bass′ 1992)

such hired guns･Asa rule, however, their lack of colnmitment quickly becomestransparent to local staff′ diminishing their credibility･

Another group of expatriates-usually those with long tenure in仇e parent

firm and little previous international experience-leave their hearts at home,remaining emotionally attached to the parent firmwith little allegiance to localoperationsI This attitude is reinforced by discomfortwiththe local culture andstrong networkswith senior executives back home･ Their behavior is oftenethnocentric′ which may antagonize employees or customers′ although their

ability to work easilywith headquarters may make them valuable in situationswhen close global coordination is required･ This group can benefit most fromcross-cultural trainmg and other tools facilitating adjustment∴

Some expatriates exhibit the opposite pattern and go native, building astrong identificaLtionwith the local firm and culture･ They are difficult to repa-triate, often preferrlng tO leave the firm and remainintheir new home･ Theparent office fhds it difficult to get their cooperation for the implementation ofcorporate policies and programsI They do not fit wellinto a meganational firm,though they may thrive in a multidomestic organization′ capitalizing on their

ability to build trust and support with local employees and stakeholders･Obviously･ the ideal outcome would be to develop expatriates who have

dual alteg‡ance′ althoughresearch shows that this is the exception rather than the

rule･103 Expatriates who see themselves as "dual citizensw feel a responsibility toserve theinterest of both parties･ They deal effectivelywith the local environ-ment′ but they are also responsive to the needs of the parent firm′ facilitating the

coordination of global initiatives･ The work environment-role clarity, job

150　cHAPTER 4. Achieving Global Integration

discretion′ and a manageable degree of role conflict-is critical to the develop一

ment of dual citizens. Role clarity and job discretion can be addressed throughappropriate job design; manageable role conflict is closely linked to implemen-tation of an effective expatriate performance management system･

Expatriate Performance Management and Rewardsperformance management of expatriates is a critical HRM process that canfacilitate (or hinder) global integration by linking local business goals andappraisal to global objectives and standards･ Performance management can alsobe a tool for lateral coordination across units. Decisions on how expatriatesshould be appraised and rewarded can make a big impact on effectiveness of

global integration一mot to mention the cost･At a corporate HR conference in the United States in the early 1990S′ one of

the presenters commented that most international HR professionals devotedabout 90 percent of their time to expatriate issues-and 70 percent of that tocompensation･ Today the emphasis of international HR has changed dramati-cally′ and many admhistrative issues concemmg expatriate compensation are

now handled by specialized external providers･ However, there are still com-plex issues concemmg reward strategleS for international staff that requlre Care-ful attention from the HR policy makers at the top of the HR organization･ Wewi11 discuss these when reviewing Performance managementinmultinationalsh Chapter 9･

Repatriation and Reentry

Most expatriates from the home office eventually return home･ However, Cominghome is not necessarily easy･ It can be a complex process of renegotiating one′s

identity, rebuilding professional networks, and reanchoring one's careerintheorganization･104 Many expatriates find it particularly difficult to glVe uP the au-tonomy and freedom they have enjoyed on theirintemational asslgnmentS･ Evenmore frustrating are "make-workw assignments, doled out to returnees who arestuckina holding pattern while waiting for a real job opportunity to open up･Empirical research with German and Japanese expatriates suggests that the

most troublesome expatriation problems orlgmate in poor career managementsystems and impaired relations with headquarters′ rather than adjustment to

the foreign Culture･'05 Further, a growlng number of corporations fail to guarantee･T a ]･Ob in the home organization at the end of a forelgn aSSlgnment･106

when all this is combined with the loss of social status and financial ben-efits associated with expatriation′107 it is no surprlSe that many observers

argue that the shock of coming home may be even greater than the challengesassociated with the initial expatriation･108 Available data point to a hightumover of employees after their return from intemational asslgnmentS･ Onesurvey put the tumover among repatriates at 35 percent in the first year afterreentry′ compared t0 15 percent tumover during the whole asslgnment and

lO percent among corporate employees in general･109 Turnover of these pro-

portions not only means loss of the investment the corporation made in

Ma5teγing Expatriatu)n 151

developlng the expatriate; it can also create a vicious circle′ increasing resis-

tance to expatriation and to the fi-′s ability to implement a strategy of global

lntegration･Aswith data on expatriate I/failure′′′ however, there are reasons to be con-

servative about the scope of the problem･ Any job transition is stressful′ even

within the home country･110 Further, researchindicates that a growlng numberof international asslgneeS View theirintemational work experience as an in-vestmentintheir own competence and valueinthe external labor market,111 soretain1ng them at the end of their assignment may be a tall order. Nevertheless,multinationals can do more′ at relatively low cost′ to improve血e probability of

Success.

The best repatriation practices emphasize advance pla-mg to provide realopportunities on rehm′ emotional and logistical support durhg the transition′

and continuous dialoguewith expatriates through formal or informal network-lng Or mentOring programs･112 h these firms, career managers or advisersmoI山or the expatriates′ development thoughout their asslgnmentS′ keep them

informed′ and serve as advocates for the expatriates during the home country

succession plaLnrung PrOCeSS･Some companies fix an end date to foreign aSSlgnmentS tO facilitate succes-

sion and repatriation planmng･ Another policy that is frequently applied is torequire the dispatching unit to take formal responsibility for finding a positionfor the expatriate comparable to the one s/he left･ However, returning after anabsence of three to four years′ the repatriate may achally face demotion′ the fate

of a surprlSmgly large number of returnees･1130ur experiences with a number of multinational firms suggest two obser-

vations on how to increase the odds of successful repatriation･ First′ seemg lS

believlng･ If most senior executives have intemational experience′ this demon-

strates the value of expatriation and eases worry about repatriation･ Second, thebest predictor of successful repatriation is the performance of expatriates beforetheir intemational asslgnmentS･ Employees with an outstanding track recordbefore their asslgnmentwill usually be easier to placeina good job ontheirretum , 114

Finally, regardless of the quality of the corporation's expatriate manage-ment system, we advise expatriates to be proactive in maintainlng good contactswith managers at headquarters and other parts of the organization Changestake place swiftly and unpredictably in today′s corporations′ and it is impossi-

ble for the HR function to plan for all contingencies･ Personal comections mayoften be crucial for identifying satisfactory job opportunities at the end of an in-ternational asslgnment･

A Summary of practices Supporting Euective Expatriation

Table 4A summarizes a number of key themes115 relating to practices that supIport effective expatriation･ Although the suggestions are presented separatelyfor each part of the expatriation cycle, it is also important to bearinmind thelinks between the different parts･

152　cflAPTER 4: Ac7u'em'ng Global Integration

TABLE 4-4･ Human Resource Practices That Support Effective Expatriation

Staffing and Selection

･ Communicate the value ofinternational asslgnmentS for the company'SglobalmlSSIOn.

･ Ensure that thosewith the highest potential moveinternationa11y･･ Provide shorHerm asslgnmentS tOincrease the pool of employeeswithinternationalexperience ･

･ Recruit employees who have lived or who were educated abroad.

Training and Career Development

･ MakeinternatiOnal asslgl1-ent Planning a Part Of the career development processl･ Encourage earlyinternational experience･･ Create leamlng OPpOrtunities during the asslgnment･

･ Use international asslgnmentS aS a leadership development tool･

Perfo-ance Appraisal and Compensation･ Differentiate performance management based on expatriate roles･

･ Alignincentiveswithexpatriation objectives･･ Tailor benefits to the expatriate's needs･

･ Focus on equalityof opportunities, not cash.･ Emphasize rewarding careers rather than shorトterm outcomes.

Expatriation and Repatriation Activities

･ hvolve the family in the orientation program at the beginnlng and the end of theasslgnment ･

･ Establish mentor relationships between expatriates and executives from the homelocation.

･ Provide support for dual careers･

･ Secure opportunities for仙e retummg manager to use knowledge and s女ills leaned

while on theinternational asslgnment.

Bt≡YOND THE TRADITlONAL I≡XPATRTATE MODEL

Few firms launch their intemational expansion without at least a small core ofexpatriates･ However, as companies pursueinternationalization, theinevitabletensions of expatriation become apparent･ These tensions′ together with the

changing demographics of the expatriate population, are changng the waysinwhich companies approachinternational asslgnmentS･

The Tensions in the Expatriate Cycle

Five types of tension are common to most expatriate situations･

Home/Host Tensions

For a number of reasons′山e presence of expatriates may generate tensions w血血e

local environment･ Expatriates who are well socializedinthe ways of the parent

Beyond The 7Traditional Expatnate Model 153

company are ofteninsensitive to local cultural norms･ They often enjoy a standardof living that is not available to localemployees, which may create resentment;and they may be costly comparedwith the value they are seen as bringing tO thelocal business･'16 Host goverrment officials and regulators may also prefer toin-terface with locals′ whom they view as more loyal to host country interests･

GIobaI/Local Tensions

When top positions in a subsidiary are continuously occupied by rotatingexpatriates′ Capable local managers may become discouraged due to lack of

opportunities to advance their careers･ Either they leave or theirwillingness tomake an effort on behalf of the firm slackens･ Over timeノーhese disadvantages

may offset the benefits of an expatriate presence-the simple control structure′

ease of communication with headquarters′ and improved coordhation with

other corporate units･ In addition, as foreign OPerations increaseinsize,intimateknowledge of local operations may become as important as communication andcoordination with the headquarters･

Short-Term/L10ngJerm 7Tensions

Expatriates are often criticized for making shorトterm decisions since their

perspective may be limited by the duration of their asslgnment･ They mayshrink from difficult but necessary actions to secure long-term benefits･ Inone such case′ a poorly negotiated initial labor contract in the subsidiary of a

foreign airline in Japan has inflated its labor cost relative to competitors for

years･ Renegotiating the contract′ to align it with the existing practice in theindustry and generate future savlngS′ WOuld be costly in the short term and

would risk triggerlng a Strike by the company union･ So far, no one in a longline of expatriate executives has been willing to take the risk 〟on their watch･′′

Conversely, newly appointed expatriates often experience a heady sense offreedom to make decisions that will attract the attention of the head office and

promote their careers-in effect change for the sake of change･ On a EuropeanWeb site frequented by employees of a US subsidiary, one fast-track expatriatewas defined as someone who 〟can outrun his mistakes.′′

Tension between Cost and Investment

The considerable expense associated with expatriation is often viewed as thecost of market entry, to be reduced, if not eliminated,inthe long run･ Indeed, theneed to reduce the costs of expatriation is often one of the drivers of localization･Yet while companies can benefit from smarter management of expatriate costs′

the expense of expatriation can be seen as an essential investment in buildingthe links necessary for managmg a transnational firm and learnlng acrossorganizational boundaries･117 A cost-driven expatriation strategy can lead to"boom-bust" swlngS･ The number of expatriatesincreases in good times, Only

to be cut when growth slows and recession looms, creating havoc and imbalancein the local organization･

154　cHAPTER 4: Achieving Global Integration

DemandySupply Tensions

The accelerating pace of intemationalization has increased the demand for ex-

Perienced and capable expatriate managers･ However, constraints oninterna-tional mobility are also hcreasmg′ many of them stemmlng from family

considerations and changmg career expectations･118 Employees are increasmglyreluctant to move abroad if movmg will handicap their children′s educational

opportunities or mean that spouses have to put their careers on hold･ The careof elderly parents is also a growmg concemJn a competitive environment′ good

people everywhere have altemative employment options･

ChangJng Demographics of the Expatriate Population

Traditionally, Policies and practices governlng international asslgnmentS Werebuilt on a number of assumptions about expatriate characteristics:

･ Expatriates were selected from the employees in the parent country'The expatriate population was homogeneous in ethicity, gender, andexperience-home country, male, experienced, possibly married butwithan adaptable spouse･

'Expatriate a.ssignments were temporary (three to four years'duration),often occurring Only once during a career･

･ The objective of the assignment Was tO maintain control over the affiliateand to transfer know-how from the sophisticated parent to the subsidiary･

･ After completion of the asslgnment,aneXPatriate was expected to returnhome′ to be replaced by another expatriate･

Today, these assumptions are less and less valid･ The expatriate populationis increaslngly heterogeneous, and a contingent approach to expatriation isneeded･119 1m a number of multhationals′ the prototypical experienced male

executive from the parent country is already in a minority･ Because of the grow-mg use of expatriation as a tool for leammg and development′ many expatriates

are relatively young.And as companies throughout the world are removlngobstacles to gender diversity in management′ an increasmg proportion of expa-

triates are women.

Female ExpatrI'ates

Although international experience is seen as one of the critical foundations fordevelopmg future leaders′ until血e late 1980s only 5 percent of all American

expatriates were women･ According to some recent surveys′ this proportion has

increased to about 20 percentinEuropeanand North Americanmultinationals･ 120A number of explanations for the small number of female expatriates have

been proposed: cultural prejudices,including low acceptance of working womenincertaincountries; lack of support and access to male-dominated expatriatenetworks;inflexibility and resentment by male peers; particular difficultieslinked to family and dual-career issues; and the unwillingness of women to

Beyond The 7Traditional Expatriate Model 155

accept foreign aSSlgnmentS･121 Adler identified "three common myths" aboutfemale expatriates:122

. Women do not want to become international managers･･ Companies refuse to send women overseas･･ Even when women areinterestedininternational assignments, the prejudicesof forelgnerS against women may render them ineffective･

Exploration of these 〟myths′′ stimulated a number of studies of female

expatriates′ particularly in the US and Europe･123 One stream of research focuses

on the desire of women to become eチPatriatesI Examining responses from more than

l′000 students from mu旭ple unlVerSities′ Adler concluded that male and female

students displayed no differencesintheir interest in pursulnginternational ca-reers･124 similar results were observedina more recent study･125 However, thereis also some evidence of differences h the willingness of males and females toaccept forelgn aSSlgnmentS tO Culturally distant and less developed locations･126

With respect to willingness to select female expatriates, Adler concluded that70 percent of HR professionals in 60 multhational companies were hesitant tochoose women･127 Among the reasons presented were difficulties in accommo-dating dual careers and gender prejudiceinthe countries to which women wouldbe sent･ It has also been argued that qualified female employees may be over-looked because men make most of the decisions about whom to send′ and many

hold traditional stereotypes about womenininternational jobs･128 However, amore recent study of US and Canadian firms did not support Adler′s fhdhgs′

and more research on this myth is needed･Several studies haLVe focused on the adjustment and performance offemale exI

patriates･ Female American expatriates were found to be just as successful astheir counterparts overseas-even in so-called male-dominated cultures such asJapan and Korea･129 Other results suggest that male and female expatriates canperform equally wellinintemational asslgmnentS regardless of the host coun-try′S predisposition to women in management′ but that female expatriates self-

rate their adjustment lowerincountries with few womeninthe workforce･130Female expatriates were perceived as effective regardless of the culhral tough-ness of the host country･131However, there is some evidence that it is more difficult for women to

reconcileinternational asslgnmentSwith the careers of their spouses･ Compa-nies with a high number of female expatriates are more likely to report problemsresulting from theinabilityof spouses to continue their careers･132 Not surpris-ingly, therefore, a much higher percentage of women oninternational assign-ments are smgle-approximately 45 percent in the 2009 Brookfield survey′

compared to about 25 percent of the men･133Some studies have pointed out that women may actually have an advantage

over men as expatriates･ For example, until more women take over expatriateroles′ their relative visibility and novelty may enhance their access to local busi-

ness networks･134 Tung has argued that women tend to possess attributes thatmake them more suitable for overseas work than men′ such as indirectness in

156　cHAPTER 4: Achievmg Global Integration

communication, good listening skills, and emphasis on cooperation over com-petition･135 Also, because female executives have long experience of being "out-siders,～ they may be better equipped to manage the stress that often accompanies

isolationinforelgn Settings･

Dual-Career Cbnsiderations

Research shows that female expatriates are more likely to be single than theirmale colleagues･ This may be because female managers are more likely thanmale managers to have working parhers′ and so may be more constrained by

dual careers. Often there are no available jobs for spouses at the new location′ a

situation aggravated by the obstacles like visa regulations′ professional licens-

lng rules, and language barriersI And even if a job is available locally, it may notcontribute to a meaningful career, reducingthe likelihood that the couplewillbewilling to move･

How can companies respond to this challenge? Multinational firms can usea number of steps to mediate the pressure of dual careers:

･ plan the assignment in terms of location, timing, and duration based on pr0-

fessional preferences and personal circumstances of the couple･･ Approach the parher′s employer and jointly prepare expatriation plans･

･ provide career counseling and assistance in locating employment opportu-nities for spouses abroad･

･ subsidize educational programs for spouses while abroad･･ Support entrepreneurialinitiatives by spouses･･ cooperatewith other multinational organizationsinfinding jobs forSPOuSeS･

･ Provide reemployment advice to parhers after repatriation･

None of these are silver bullets that will solve every problem but in most cases′

even modest progress in reducing barriers to mobilitywill have a positiveimpact on the pool of future global managers･

Younger Expatriates

The issue of dual careers is often easier to manage among younger expatriates･Their partners (if any) may be more flexible about job opportunities in the localmarket′ as they risk less by taking an intemational career detour･ Placing

･T younger employees who are single or who have small familiesininternational

jobs can substantially reduce the total compensation cost; the expensesinvolvedinfamily expatriation (housing., education, and home leave) can easily surpassthe salary cost at lower professlOnal levels･This point is important because the aim behindinternationalasslgnmentS is

shifting from demand-driven to learnlng-driven objectives, as discussed earlier･Instead of a focus on control, knowledge transfer, or problem solving, asslgnmentSare increasmgly aimed at the development of organizational and individualcompetence and furthering the career development of the expatriate･136 Theselearnlng assignments are naturally suited to younger employees･137

Beyond The 7TradltWnal Expatnate Model 157

TJ7I'rd-Country Nationals

Expatriates from countries other than the parent country of the multinationalare commonly referred to as third-country nationals (TCNs), Historically, twofactors drive TCN employment: the scarcity h the home country of suitable can-didates for intemational asslgnmentS′ and attempts to hold down the cost of ex-

patriation･ For example′ a US multinational may seek to employ expatriatesfrom the United Kingdom′ Canada′ and Australia′ Countries with a common

language and comparable compensation and living standards, but no doubletaxation on expatriateincome･With accelerating globaLlization, companies today are simply looking for the

most suitable candidate, irrespective of country of origin, and so the proportionof TCNsinthe expatriate population isincreasng, For example, at HSBC thecohort of seniorintematiOnal managersIPeOPle expected to moveglobally-included 380 managers from 33 countri;S. Half of the latestintake were women.138Repatriation of TCNs often creates acute dilemmas. Evenwith the best ca-

reer plamlng′ there may slmPly be no comparable position back at their forelgn

country home･ Finishing an asslgnment SOmetimes forces an agonizing Choice-to return home and leavethe company, or to accept a posting ln yet anothercountry, which in turn makes the prospect of a later return even more problem-atic･ TCNs shoulder such dilemmas, creating difficult trade-offs between careerprospects and the well-being of the family･

The Changing Nature of )nternationaIAssignmentsWith these changes in the composition of the expatriate population, conven-tional expatriate asslgnmentS may become the exception rather than the rule･The impact of changing demographics is accentuated by two other trends-theshorter duration of assignments and the diminishing securityof expatriation.

ShortJerm Assignm en ts

Earlier, we identified short-term learnlng assignments aS a growing type Ofexpatriation･ Many problem-solving and project asslgnmentS also have shortspans, so it is not surprising that short-term transfers (less than one yearinduration) are the fastest-growingtype of international assignment･139Short-termassignments are popular because they offer nexibilityand are sim-

pler to plan and execute･ Even more important′血ey cost less.-ぺXPenSive housingand cost-of-living allowances are not necessary･ Short-termasslgnmentS also facili-tate repatriation to the home orgmization･ From the employees′ point of view, they

need not uproot the working spouse and fami1y･ The partner may stay at home ortake a short sabbatical･ Many companies limit such assignments tO less than sixmonths, while longer transfers are treated as a regularintemational assigmlent･140

The lnsecurL'ty of Expatriation

Not only are intemational transfers becomlng more Shorトterm′ they are also

becomlng less secure･141 Expatriate postingsinthe past provided at least a

158　cHAPTER 4: Achievmg Global Integration

temporary haven from the turmoil of home office reorgaIlizations, Since theterms for intemational assignments in most Western companies (and virtuallyall Japanese or Korean companies) included the guarantee of a return position･Now, however, the pattern-in some countries at least-is changing,with

fewer companies offering expatriates a guarantee of a job upon their retumhomeJnternational experience may not be a career booster for all expatriates:management development asslgnmentS may indeed lead to upward mobility′

but problem-solvhg transfers may notJn part′ this reflects general changes in

the employment relationship-′′If we ca-Ot guarantee jobs for people at home′

how can we promise them to people abroad?" But it is also a slgnthat expatri-ate positions are not exceptional today, so companies do not see the need forspecial treatment･There are mixed signals here･ One message fromintemationalCorporations

is that intemational experience is an asset･ But′ however unintentional′ another

is that it may be risky for the career･ There is a gap between the血etoric and the

reality･ While the logic Of IJequal" treatment may have some merits, there is noquestion that employees temporarily located abroad may have substantiallymore difficulties in linmg up alternative job opportunities at home′ Or at least

that they may perceive this to be the case･ And an increased perception ofinse-curity naturally leads to increased resistance tointemational mobility･

A]ternatives to Expatriation

How can companies respond proactively to such tensions? With changes in thenature of expatriate jobs and the conditions of the asslgnment′ is there a future

for expatriates? There are certainly some emerglng altematives･

GIobal Integration without Traditional Expatriates

we already argued that shorトterm asslgnmentS are increasmgly used as an

alternative to dispatching expatriates on long-term asslgnmentS･ Table 4-5 pres-ents a number of altematives to the traditional expatriate model･A group of employees that has received little attention but is growmg 帆

numbers are forelgnerS Who work overseas without havhg been sent out by anorganization･ These employees are not expatriatesinthe traditional sense ofthe term but are on self-initiated foreign assignments･ They typically have local

TABLE 4-5･ Alternatives to Traditional Long/rerm ExpatriateAssignments･ Shorトterm asslgnmentS･

'Self-initiated asslgnmentSl･ Returnee asslgnmentS･

. Intemabonal commuter asslgnmentS･

'Rotational asslglunentS･

'Virtual asslgnmentS.

Beyond The 7Traditional Expatriate Model 159

employment contracts and no guarantee of remainmg employed by thecorporation on their return to their home LCOuntry, even if that happens to be thecorporation′s home country･142

Returnees are people who have studied and maybe worked for a slgnificant

period of time abroad before returnlng tO their home countries･ For example′ a

large number of Chinese nationals study and work overseas before behg sentbv their employers on asslgnmentS tO China･ Are these people expatriates?Many demand and are glVen the benefits associated with expatriate status;Some are not.ne ongolng reVOlutioninCommunications is dramaticauy expanding the

possibilities of virtual expatriation-asslgnmentS Where employees have responsi-bilities abroad but manage them from the home country･ Some managerswithheavy intemadonal coordination responsibilities spend so much time on血e road

that it does not matter where thesefrequentflyers live･ Unilever used to allow itsregional managers to decide whether they would liveinthe parent country or thereglOn-either way, they would be traveling a lotinthe other direction･A variation on post-expatriate management is the international commuter.

Just as many US executives routinely commute across the conthent to their jobsafter every weekend′ So a new generation of European managers prefers a

weekly commute to relocation-for example′ taking the high-speed trainbe-

tween Brussels and Paris･ Their prlOrity is securing a Stable environment for thefamily′ while companies benefit because of considerable cost savmgs and be-

cause they can expand substantially the pool of candidates for intemational jobswhen relocation is not required･ A particular category lS rOtational assignments,where the expatriate commutes to anothercountry for a short, set period of timefollowed by a break in the home country･143Virtuality has its limits･ No amount of electronic communication can replace

human contact･ The cost of fewer international postings may be more short-termtrips･ During business downhms′ Companies are usually quick to issue edicts

agamst umecessary travel･ How many times can an individual jet between con-tinents before fatigue sets in? The wear and tear of intemational travel is a hid-den health threat′ the cost of which has yet to be calculated･144

Beyond the solutions afforded by new technologleS′ globally integrated

companies are seeking new strategies for organizlng theirinternational activi-ties･ The Spanish fashion retailer Zara is a tightlyintegrated emplre,with overl′000 stores h more than 30 countries on three conthents. h contrast with

established industry logic, Zara makes two-thirds of all its clothesinthecompany･145 It has its own factories in Spaln and restocks stores around theworld twice a week The team of core designersinthe head office continuouslyredesigns its products･Zara uses expatriates only for temporary asslgnmentSinconnectionwith

start-up operationsJndeed′ the company has leaned that using Spanish expa-

triates to run local operations does not necessarily provide good results becauseof the diverse cultural idiosyncrasies of the host countries･146 zara reliesinsteadon hiring local managers and socializing theminto the corporate culture (many

160　cEIAPTER 4: Achlem'ng Global Integration

have some ties to Spah)′ and will not operate h countries in which local talent

is not available.Zara's key capabilities areindesign and production processes, and the

tools needed to support these capabilitiesinthe subsidiaries can easily be trans-ferred through formalized proceduresinlogistics,inventory control, marketinginformation systems, and centralized product design and pricng･ h addition,the company resolves cross-border issues through extensive use of internationalmanagement meetings and deployment of auditors from the headquarters tomonitor local activities･ The corporate auditors, basedinSpain, perform coordi-nation roles that are often assumed by expatriates in other firms･

Impatriation= The Next Step in FosterI'ng Global Integration

Zara, Nokia, and many otherinternational companies discussedinthis chapterinvest substantial resourcesinthe socialization of their local managers･ Animportant tool of this process is often a temporary asslgnment tO the headoffice or parent country operations･ Such forelgn nationals on nonpermanentasslgnmentSinthe parent country of the multinational are frequently called〟impatriates･ ′′147

The number of impatriates isincreaslng WOrldwide･ Forinstance, multina-tionalswith operationsinCentral and Eastern Europe have a considerablenumber of impatriates at corporate headquarters･148 A large number work in theUnited States and Europe′ where there are more than 40 nationalities repre-

sented at the headquarters of some major multinationals such as Nestlさand

Shell･ Only in Japan and Korea is the number of impatriates small･Most impatriates are young employees or middle managers who come to

the parent organization for developmental assignments, tO absorb the corporateculture, or to participateinproject teams･ Some comewiththe explicit aim ofpreparmg themselves to replace expatriates; Others stay and join the homeorganization on a semlpermanent Or Permanent basis･What kinds of HR policies are best suited to support impatriation? Are

typical expatriate policies suitable for impatriates? Are there differencesbetween impatriates and expatriates that would argue for different HR ap-proaches? The situations facing expatriates and impatriates may be similar, butthey are not the same･ Most impatriates are assigned for leamlng reasons; Veryfew are corporate agents･ In terms of national orlgln′ they are more heteroge一

･･ neous than expatriates, so defining one-size-fits-all policies isfraughtwithdifficulties.Communication is often a major constraint for impatriates･ Employees in

forelgn locations are generally used to interactingwith expatriates･ They chooseto work for a foreign-based firm, and they expect to see foreigners arOund･ Theoffice language is usually the language of the expatriate′ and the locals have to

adapt･ Not so in the home Office, where communication problemswith impatri-ates are often unexpected′ and sensitivity to communication difficulties on both

sides is required･ Indeed′ HR may have to support impatriation through cross-

cultural training-for the locals･

The Limits of Global Integration 161

A British manager relocated to the head Officeinthe AmericanMidwest ex-perienced an initial warm welcome, but then socialinteractionswith coworkerscooled off. He felt frozen out･ Sharing his concernswith the HR manager, helearned that the locals were upsetwith his perceived "selfishH valuesIPuttinghis career ahead of his family, as demonstrated by his leavlng two young Chil-dren behind at boarding schoolinEngland･ Of course, this was before Harrypotter!Some companies simply treat their impatriates as local staff,integrating

theminto the home office compensation and benefits programs･ They do notprovide forelgn Service premiums′ housmg support′ Or related benefits to theirimpatriates′ assumlng that the corporate headquarters is the center of the

universe･ If the impatriates are expected to remainpermanentlyinthe parentcountry, this may be the most sensible approach･ But for temporary transfers, itmay be better to treat impatriatesinthe same way as home country expatriateson leammg asslgnmentS are treated′ With a degree of support appropriate to the

expected length of stay･149As the number of expatriates continues to increase′ there is an emergmg

trend to treat people transferred across borders in the same way′ at least h

prlnCIPle･ Some companies have developed global transfer policies that covereveryone regardless of country of origin. The terms are determined by thepurpose of the asslgnment′ its duration′ and the career circumstances･

THE LIMlTS OF GLOBAL tNTEGRATl0NNokia had been considered a good employer worldwide′ with a nurtumg and

empowerlng Culture血at created excellent opporhnities to learn and grow･ But

more and more local employees perceived the company as providing onlylimited career opportunities since the majorityof "good" jobs were filled byexpatriates-most of them from Finland･ Retainmg the best local talent began tobe a problem, requlring the firm to rethink its approach toglobal HR manage-ment･ From the mid-1990S′ the number of TCNs and impatriates increased

rapidly, and as we mentionedinthe openlng Case, the company has alsoappointed several non-Fi-s to the top management team･But realignmg the staffing policies was perhaps the easy part･ One weakness

of globalintegration strategleS is the potentially negative impact on the firm'sability to be responsive to the local needs and demands of customers′ host gov一

cmments, or local employees･ For example, as Nokia continued to growglob-ally, new organizational challenges emerged, especiallyinitsinfrastructurebushess･ While the company had mahly offered u山Versal GSM technology

based on global standards′ customers now began to demand specific solutions

fitting local needs′ which required extensive customization･

As the market expanded beyond the traditional operations′ Nokia was ex-

pected not only to provide equlpment but also to manage the whole project ofinstallment and start-up on a tumkey basis･ Withincreased complexity,the

)62　cfIAPTER47Acftiem'ngGlobalLntegration

coordinationdemandsontheNokiaolganiZationincreaseddlamatica11y･This

requiledanewsetofskillsthathadtobesharedacrossthewholeolganiZation･

AndwhereNokiahadactedalonebefole,therapidevolutionoftechnology

nowrequiledengagementinmultiplepartnerships,involvingeltenSivecoor･

dination.Theoldapproach.fgl.batintegrationthathadpr.vens.successful

duringthefirstdecade･fglobalexpansi.nbegant..uttiveitsusefulness･

Nokia'srecentexperiencepointstotheimportanceofbalanctngglobalin･

teglationandloca11eSPOnSiveness･However,thechallengefolthemultina･

tionalisnotonlyhowtodealwiththeubiquitouschallengeofbeinglocally

responsiveandgl.balLyintegrated)itmustats.bepr.ficientincoordinatingits

lateralintelnationaloperations･TheneltPartOfthebookwi11discusshowto

addleSSthelattelChattengefromapeoplemanagementperspectivet