Topic 6
HR Issues in
Expatriation & Repatriation
Lecture Plan
Reasons for using expatriates
Selection for international assignments
Training & development of international workforce
Repatriation
Case Study: AstraZeneca Expatriate Management
Key Terms
Expatriates
Repatriates
Self-initiated expatriates/repatriates
Transpatriates
Inpatriates
MNC
Family Local
government(s)
Expatriate
The Expatriate’s Dilemma
The Expatriate’s Dilemma
Locals Local
employees Partner(?)
Reasons for Using Expatriates I
Schuler, Budhwar & Florkowski (2002); Dowling et al. (2023)
Control and co-ordination of operations
Transfer of skills and knowledge
Managerial development
Reasons for Using Expatriates II
Broaden international perspective (IBM)
New Ventures
Train locals
Specific expertise (language trainers in call centres)
Protect company interest (McKinsey, GE)
Sales
Expatriate Failure
What is it?
Cost of expatriate failure
Phases of adjustment
Tourist
Crisis – Culture shock
Pulling-up
– Adjustment
Dowling et al. (2023); Harzing (1995)
Critical Dimensions for Foreign
Assignment Selection 1
Schuler, Budhwar & Florkowski (2002)
Accept foreign assignments
Spouse and family support
Knowledge of foreign language
Adjustment to living abroad
Adjustment to foreign business practices
Establishing/maintaining business contacts
Critical Dimensions for Foreign
Assignment Selection 2
Technical competence
Working with others
Communicating /persuading
Initiative/effort
Company support
Brewster et al. (2016)
The Spouse’s Situation
Strange environment (culture shock)
Loss of life back home:
friends
work
hobbies
Wife/husband works long hours
But more time, new possibilities, and an interesting
environment!
The question: How would you like to live your life??
APPROACHES TO
MULTINATIONAL STAFFING
Ethnocentric
Polycentric
Geocentric
Regiocentric
Three Nationality Choices
PCNs
HCNs
TCNs
Advantages and Disadvantages
Current Expatriate
Category
Profile
PCN (40%) HCN (16%) TCN (44%)
Gender Male (78%) Female (22%)
Age 30-49 (62%) 20-29 (17%)
Marital status Married (64%) Single (26%)
Partner (9%)
Accompanied by Spouse (80%) Children (57%)
Duration 1-3 yrs (52%) Short-term (9%)
Location Within Europe (30%) Within Asia (28%)
Primary reason Fill a position
Prior Int. Exp. 26%
Global Relocation Trends: 2020 Survey Report
Reasons For Expatriate Failure
Schuler, Budhwar & Florkowski (2002); Dowling et al. (2023)
Reasons For Expatriate Failure 1
Schuler, Budhwar & Florkowski (2002); Dowling et al. (2017)
Selection error.
Inadequate training and orientation.
Ineffective expatriate management policies.
Inability to adjust to foreign culture.
Inability of the spouse to adjust.
Reasons For Expatriate Failure 2
Inability to cope with larger responsibility.
Personal and emotional problems.
Length of assignment.
Willingness to move.
Work environment related factors.
Psychological contract.
Selection Criteria For Expatriate
Assignments
Dowling et al. (2023)
Technical ability
Cross-cultural suitability
Family requirements
MNE requirements
Language
Cross-cultural requirements
Selecting International Managers
Examination of Past Performance
Battery of Tests
Extensive Interviews
Tests For International Selection
Technical Ability
skills & competence
Psychological Suitability
adaptability, emotional stability, maturity
Communication Skills
Other Factors in Expatriate Selection
Dual-career couples
Female international managers
Family considerations
Work permit requirement
Equal opportunities and local laws
Training for International Assignments
Dynamics of cross-cultural training
Pre-departure training programmes
Cultural awareness programmes
Preliminary visits
Language training
Practical assistance
Job-related factors
TCN expatriate training
Training Techniques for
Expatriate Preparation
Training Technologies for Expatriates
Mendenhall and Stahl (2000)
The need for in-country, real time training.
The birth of global mindset training.
Self training via software and the internet.
Culture Assimilator + Culture Compass (On CD-ROM)
Expatriate Adjustment & the Role of HCNs
Black et al. (1991)
General
Interactional
Work related
Role of HCNs in the expatriates’ adjustment
Role related /working environment
Social
Role of social categorisation (Tajfel and Turner, 1986)
Why and How HCNs’ Offer
Support to Expatriates?
Consider you are working with an expatriate manager who is very
different to you (on the basis of culture, traits, religion, gender, age, etc).
On what basis you will put this expat into your ‘in-group’ or ‘out-group’?
What kind of support you will be happy to provide them and why?
How can HR utilise this kind of research to better manage expats?
Varma, Budhwar and Pichler (2016)
Expatriate Adjustment & Role of Self
Regulation & Regulatory Fit
(Kumar, Budhwar, Varma & Patel, 2019)
Discrepancy – uncertainties – adjustment issues
Self-regulatory systems (Higgins, 1998)
Self-regulation involves correcting any unfavourable discrepancies
between an individual’s goals and the progress that he/she makes in
accomplishing them
Promotion-focused self regulatory system An individual is
motivated by ideals that are attained through growth and advancement
Prevention–focused self-regulatory system An individual is
motivated by a focus on security that is attained through a strategy of
vigilance
Tight-loose cultures (Gelfand et al., 2011)
Notion of Regulatory Fit
Regulatory Fit implies that the strategies used to reduce discrepancies are
consistent with one’s regulatory orientation
E.g. if a promotion-focused expatriate is engaged in goal pursuit in an eager
way they are likely to experience regulatory fit
Likewise, if a prevention-focused individual pursues a goal through vigilance
then they are likely to experience regulatory fit
Regulatory fit is associated with “increased motivational intensity”
Notion of non-fit
Role of Emotions
Implications for HR of such research
Kumar, Budhwar, Patel and Varma (2019)
Repatriation Process
Preparation
Physical relocation
Transition
Readjustment
Factors Affecting Readjustment
Job Related
Social Factors
MNCs’ Response
Managing Expat
Assignment Post Pandemic
Workforce review
Resetting mobility
Virtual assignments
Employee health and well-being
Expat Salary Management
[Link]
om-our-expatriate-salary-management
(Accessed on 26 Nov 2023)
Repatriation
Less autonomy, challenge, status
No positive effect on career
Little use of experience
Worse financial situation
Cultural shock in reverse
What can be done?
Careful selection
Role models
Mentoring
Counseling & support
But probably most important: Own
initiatives!
Case: AstraZeneca Expatriate Management
What approach did AstraZeneca take with respect to internationalisation?
What should AstraZeneca do differently with respect to managing their
expatriates? And why?
What decisions related to expatriates can organisations take to maximise
the benefits to the company despite the ongoing economic recession?
What to Know Before Evacuating Expats?
Mercer Talent All Access (2020) Business responses to the Covid-19
outbreak – Survey findings
[Link]
[Link]
References
* Dowling, P. J., Festing, M. and Engle, A. D. (2023) International Human
Resource Management. London: Thomson. Chapter 4, 5, 6 and 8.
Brewster, C., Houlsworth, L. Sparrow, P.R. and Vernon, G. (2016) International
Human Resource Management. London: CIPD. Chapter 12: Managing
International Working.
Harzing, W. W. (1995) The Persistent Myth of High Expatriate Failure Rates. The
International Journal of Human Resource Management 6(2), 457-474.
Mendenhall, M. and Stahl, G. K. (2000) Expatriate training and development:
Where do we go from here? Human Resource Management, 39(2&3), 251-265.
Ronen, S. (1989) Training the International Assignee. In I. Goldstein (Ed.) Training
and Career Development. San Francisco: Josey-Bass.
Schuler, R. S., Budhwar, P. and Florkowski, G. W. (2002) International Human
Resource Management: Review and Critique. International Journal of
Management Reviews, 4 (1), 41-70.