PREPARING FOR AN INTERNATIONAL ASSIGNMENT

OBJECTIVES

Identify the selection criteria that will increase the probability of international success.

Identify the unique training needs of international managers and their families

Know how to facilitate the expatriate’s successful re-entry to the home culture

Preparing Managers for Intl. Assignment

Est. that 20 - 50 % return prematurely Ave. cost per failure ranges from $55,000 -

$150,000

CAUSES OF EXPATRIATE FAILURE

Manager’s inability to adapt Spouse's inability to adapt Inability to cope with larger responsibilities Other family-related matters Manager’s personality Lack of motivation to work overseas Lack of technical expertise

A Foreign Deployment System

Stage One: Employee Assessment Stage Two: Employee Orientation Stage Three: On-Site Support and Monitoring Stage Four: Re-Entry Program

Selection Criteria for International Assignments

Applicants better prepare themselves for international assignments by carrying out the following three phases:

Phase 1: Focus on self-evaluation and general awareness include the following questions:

Is an international assignment really for me?

Does my spouse and family support the decision to go international?

Collect general information on available jobs

Selection Criteria for International Assignments

Conduct a technical skills assessment – Do I have the technical skills required for the job?

Start learning the language, customs, and etiquette of the region you will be posted

Develop an awareness of the culture and value systems of the geographic area

Inform your superior of your interest in the international assignment

Selection Criteria for International Assignments

Attend training sessions provided by the company

Confer with colleagues who have had experience in the assigned region

Speak with expatriates and foreign nationals about the assigned country

Visit the host country with your spouse before the formally scheduled departure (if possible)

Stage One: Employee Assessment

Research calls for more comprehensive selection procedures

U.S. firms tend to focus on single criterion - technical competence

Only a small number of firms administer tests to determine cross-cultural skills of candidates

Companies also overlook adaptability potential of the spouse and other family members

Key Criteria

Technical ability Cultural Empathy Adaptability and Flexibility Diplomatic Skills Language Aptitude Personal Motives Emotional Stability and Maturity Adaptability of Family

Trends

EMPLOYEE

0 to 45 days prior to assignment

Review IA policy and LOU Meet with employer to discuss LOU Commence passport and visa process

45 days prior to assignment Meet with service providers as appropriate Arrange property management, HHG shipment, tax

orientation etc. Complete necessary medical/dental requirements Prepare will and establish power of attorney Insurance and banking arrangements-home/host Cultural and/or language training Travel and lodging Develop contact list Cancel/transfer utilities and other services Necessary arrangements with post office, voter registration,

credit cards, etc.

EMPLOYER

90 to 45 days prior to assignment

Meet with employee to review LOU Initiate visa and/or work permits      Apply for Totalisation Agreement

45 days prior to assignment HHG and storage guidelines Host country support systems Review benefit plan coverage Meet to discuss tax responsibilities Cultural and/or language logistics Ongoing contact with “providers” Follow-up visa and/or work permits Follow-up Totalisation Agreement

Information Services

Employee information. Reference materials documenting home and host

country resources. The home country portion should apply generally to all

international assignments. For example, it could include medical forms, change of address cards and banking information.

Host country packets should be location specific and include information on schooling, housing, etc.

Providing such information and assistance achieves two objectives:

It eases the family's relocation burden; It sends a positive message to the employee and

family for a smooth transition.

Cultural training/preparation Preparing employees and their families in advance for the cultural

changes they will experience is an important yet often overlooked consideration.

An investment in cultural training benefits both the employer and employee.

Rapid host country adaptability and adjustment of the expatriate and his of her family to their new environment will play a major role in the overall success of their assignment.

In retrospect and for families who found adjustment difficult, assignees uniformly agree that some form of cultural awareness should have taken place prior to their assignment.

Information Sources

Foreign Language Assistance: www.travlang.com

Exchange Rate Information: www.oanda.com 

The assignment-PreDeparture Questions How is the Cost of Living Allowance (COLA) determined? What does the COLA cover? When will my allowances begin? Why does my net pay continue to fluctuate? How should I report out-of-pocket expenses? Who will be managing my housing and utility expenses at the host? How do I report education costs? Who are my Human Resources contacts at the home and host

locations? Who are my contacts for payroll/benefits/taxes? What can we do to overcome the difficulties in adapting to the

cultural differences?

Support groups 

Provide a valuable forum for individuals dealing with similar issues.

A company's active support and involvement adds positive reinforcement for participants. 

Support groups provide  "do's and don'ts" and "how to" information for new families. 

Company newsletter published on a regular basis

Other Communication Modes

Another tool is the Internet, with its capacity for real-time communication.

Teleconferencing is yet another alternative for expatriates.

The more sophisticated the tool and the more it is used, the stronger the ties between the employee and the employer. 

Repatriation Employers must recognise the value of an employee's

international experience. During the initial assignment discussions, they must be

clear about assignment and post- assignment expectations.

From the onset, they should plan how future business needs could be satisfied through the employee's knowledge and experience gained during the assignment.

This should be a process that is continuously communicated to the expatriate.

Key to the company's planning for post-assignment opportunities is the integration of the assignee's international experiences to its own requirements.

Expatriate Chat Rooms: 

www.expat-repat.com www.expatforum.com www.expatexchange.com www.expatspouse.com www.expatica.com (Expatica forums)

Staffing policies vary with stage of internationalization of MNC

Many U.S. MNCs have long trumpeted the importance of overseas assignments for middle managers.

Major corporations req. candidates with international experience in 28% of senior-level searches last year, up from 4% in 1990

Executive Recruiting, Asian Style

Double-digit economic growth has created demand for people with language ability, cultural knowledge and professional and management expertise.

Asia offers foreign firms a large, low-cost labor pool and rapidly expanding markets.

Severe shortage of skilled technicians and management expertise, esp in LDCs.

Companies starting to balk at spending $250,000 to $500,000 a year to provide an expatriate with American living style.

Hiring people who are willing to live like locals - Asiaphiles The base salaries are comparable but advancement opp are better.

Employee Development in Brazil

Candidates who do not speak English are not considered for leadership positions. Those who speak two languages, in addition to Portuguese, are viewed more favorably.

Some companies expect the candidate to have international experience as well.

Others demand employees who read journals. They believe that people who are uninformed about the world are unable to solve today’s problems, and that those who are not reading constantly are losing ground to a large group of people

Women Going Abroad

Although women want intl. assignments, execs reluctant to send them overseas.

The reality is that other countries treat women like foreigners.

The success rate of women is about 97%

STAGE TWO: EMPLOYEE ORIENTATION

General and Specific Cultural Training

Studies report lack of comprehensive cross-cultural training programs

Programs not effective Trainees dissatisfied Insufficient time to provide quality program Length of assignment does not warrant cost Trend toward employing local nationals Top management does not perceive need

Research findings show positive relationship between cross-cultural training and:

self confidence to function effectively in a cross-cultural setting

more accurate cross-cultural perceptions increased cross-cultural relationship skills job performance in a cross-cultural setting

The important question is: What skills do executives need and how can appropriate training be designed to facilitate the acquisition of these new skills?

Best training programs have 2 phases:

Phase 1: Culture Specifics Focus on the Manager Characteristics of cultural environment of host

country Phase 2: General Culture

Focus on Manager and Family Language training Area study Cross-cultural training

Ex: Chrysler Corporation

Sends employees and their spouses to intense, 3-day training program.

Trainees meet with relocation specialists in workshops that introduce them to culture of country.

Workshops focus on emotional adjustment and ways to combat culture shock symptoms such as self-pity, loneliness, and substance abuse

EX: Procter and Gamble Corporation

Managers and their spouses spend 2 months in Beijing for language training and cultural familiarization.

This orientation is completely separate from their assignment in China.

Ex: Nissho Iwai, a Japanese Trading Co.

Provides briefing seminars for employees and their spouses .

Provides opportunities to bring together wives who are leaving Japan with those who have returned.

Provides extensive information on Japanese schools abroad and the enrichment programs Japanese children will require to stay competitive.

STAGE 3: ON-SITE SUPPORT AND MONITORING

This phase should be pragmatic and meet the needs of the expatriate family

Company personnel should be available to: facilitate the family’s integration into the host

culture and strange work environment assess their needs and performance encourage their personal and career development

Formal Steps that HRM can take to develop a more effective 0n-Site Program:

Develop an Adjustment Inventory. Survey expatriates to determine family needs,

problems, and opportunities that exist in host country

Provide On-Going Data Anal. & Reporting Organize Expatriate Community

Establish communication links, e.g.., newsletters, co. publications, audio-video cassettes, with employee to counteract alienation and loneliness.

Formal steps that HRM can take to develop a more effective On-Site Program

Develop an Adjustment Inventory Survey expatriates to determine family needs,

problems, and opportunities that exist in host country

Provide on-going data analysis and reporting Organize expatriate community

Establish communication links, e.e., newsletters, co. publications, audio-visual cassettes, with employees to counteract alienation and loneliness.

Ex.: Colgate-Palmolive

Division executives and other corporate staff members make frequent visits to international subsidiaries.

STAGE 4: RE-ENTRY PROGRAM

For sensitive employees, the international experience was likely to be profound and they are bound to have regrets about leaving

In many cases, the overseas assignment can be risky for employee

Returning expatriates experience reverse culture shock

Companies do not fully utilize the knowledge developed in the overseas assignment.

Ex: The Grumman Corporation

6 months before departure, company considers needs of employee and family.

Ex.: Ciba-Geigy

The company provides a full repatriation program for returning employees to: reverse culture shock smooth return to home organization facilitate readjustment process

METHODS FOR IMPROVING CROSS-CULTURAL TRAINING PROGRAMS

Three Learning Models

Intellectual Model Cognitive or information giving approach Consists of lectures

Self-Awareness Model Sensitivity training Focus on attitudes, values, beliefs; why people

behave as they do Experiential Model

Behavioral or immersion approach Provide realistic simulations or scenarios

Which method is most appropriate for a specific training situation?

Mediating factors include: the length of time expatriate will be stationed in

the host country the degree of integration within the host culture

needed to successfully complete the assignment the degree of similarity between the home culture

and the host culture

CULTURE NOVELTY

How similar is the individual’s culture to the new culture?

Is learning a new language necessary for living and working in the host country?

Has the individual had previous experience with the host culture?

Hofstede provides a rough estimate of culture novelty. Calculate the absolute difference in scores on each of the four scales and sum these differences. The larger the number the greater the culture novelty.

THE DEGREE OF INTERACTION

How frequently is the individual expected to interact with members of the host culture?

How important are the interactions? What is the nature of the interaction?

Type: routine vs novel Directionality: 1-way vs 2-way Form: face-to-face vs mail, etc. Duration: short vs long-term Format: formal vs informal

JOB NOVELTY

Are job demands similar to or different from those of previous jobs? Consider performance standards, degree of personal

involvement, types of tasks, bureaucratic procedure. What kind of job constraints are there?

Consider resource limitations, legal restrictions, technological limitations

What latitude does the person have to make job choices? Consider freedom to decide how work gets done, discretion

about what work gets done, degree of freedom to decide who does what, choices about how work gets delegated

Tips on preparing for an international assignment

Social and business etiquette History and folklore Current affairs The country’s values and priorities Geography Sources of pride Religion Political structure Practical matters The language

THANK YOU

Conclusion

Many factors must be considered in the selection and development of managers for intl. assignments.

Once selected, an intensive training and development program is essential to qualify the person for the assignment.