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The international HRM wheel
Local personnel
International personnel
Corporate
2

3

The changing features of international managers
From
To
 Recruitment essentially
HQ in home country
 Recruitment from all over the world
 Increasingly ‘local’ contracts
 Expat package
 Local recruits stay local
 Possibilities for locals to become part of the core
 Strong ‘corporate style’ diffused in the subsidiaries
 A lot of job rotation: regional; global
 ‘Foreign office’ type of career
 Dual career system
 Performance appraisal focuses on local performances
 A lot of international management development programmes
 Performance appraisals include local plus global or regional achievement
4

5

The dual allegiance of international managers
Allegiance to parent firm
Low High
Low
International managers who see themselves as free agents
International managers who leave their hearts at home
Allegiance to local firm
High
International managers who “go native”
International managers who see themselves as dual citizens
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The dual allegiance of international managers
Pattern Pros Cons
Free agent

Often have superior international capabilities (e.g. language, negotiation)

Often somewhat less costly than traditional international managers



Often leave with little warning
Replacement costs may be significant
May serve self-interests more than company interests
Go native
Heart at home
Dual citizen





Adjust well and quickly to local culture

Usually effective in local environment including interactions with employees, customers, suppliers, etc.



May fight global initiatives
May be slow to implement directives from headquarters
Likely to leave firm after repatriation


Quick to implement directives from headquarters
More likely to stay with firm after repatriation
Adjust well and quickly to local culture
Usually effective in local environment
Facilitates the coordination of global initiatives
Responsive to directives from head- quarters

Adjusts poorly and slowly to local culture and environment

Likely to inappropriately implement directives from the parent organization

Requires serious thought and commitment from the company to develop into dual citizen

Are a rare breed and are attractive to other firms who may try to steal them away
7

Adjustment in an international assignment: the “U-curve hypothesis”
Honeymoon Mastery
Adjustment/
Satisfaction
Adjustment
0 2 4
Culture shock
6 8 10 12
Months
8

Benefits for the company
The country assignment
Acculturation
Total benefits
Optimum tenure
Local impact
C
A
Global integration
B
Productive tenure
X
Time
9

The impact of international cultural differences for management
Interpersonal relationships
- Communication
- Etiquette
- Decoding attitudes and behaviour
- Understanding ‘silent’ language
Hierarchical/managerial interactions
(boss/colleagues/subordinates)
- Feedback
- Control
- Reward/punishments
- Personal space
- Motivations
Multicultural teams
- International managers vs locals
- Group building/working/relationships
- Conflict resolutions
Partnerships/transactions
- Contract negotiations
- Joint ventures/partnerships
- Official meetings
- Community events/social events
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“Local employees avoid telling their boss they think they are wrong”
– agree or disagree?
Hong Kong
Japan
Korea
China
Malaysia
Thailand
Indonesia
Philippines
Singapore
Taiwan
Strongly disagree Strongly agree
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“Employees and managers prefer to tell stories than admit they made a mistake” – agree or disagree?
Korea
China
Malaysia
Indonesia
Hong Kong
Taiwan
Philippines
Thailand
Japan
Singapore
Strongly disagree Strongly agree
12

“Telling an employee in front of others that he/she made a mistake is not acceptable” – agree or disagree?
MALAYSIA
HONGKONG
INDONESIA
CHINA
PHILIPPINES
KOREA
TAIWAN
SINGAPORE
THAILAND
JAPAN
Strongly disagree Strongly agree
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PHYSICAL
DIFFERENCES
International managers: culture shock
LEVEL OF
DISORIENTATION
STRESS
UNEASE
CULTURAL
DIFFERENCES
FLIGHT
• rejects
• retreats
• insulates
THE
“COLONY”
FIGHT
• hostility
• disgust
• disapproval
REACTIONS
ACCEPT
• interested
• looks for contacts
• learns about culture
THE
COSMOPOLITAN
EXPAT
GOES NATIVE
• enthusiastic
• adopts local practices: food; dress; style
• local ‘companion’
THE
LOCALIZED
EXPAT
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Problems on repatriation
• The majority of international managers experience some degree of culture shock during repatriation
• More than half of returning international managers feel their overseas assignment had a negative impact on their careers
• 1 out of every 5 managers who finish an international assignment want to leave the company when they return
• The majority of international managers feel their re-entry position is less challenging and satisfying than their overseas assignment
• Most returning international managers feel there are limited opportunities for using their newly acquired knowledge and skills, and feel their international expertise is not appreciated by their firms
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HRM practices which support effective expatriation
Staffing and selection
• Communicate the value of international assignments for the company’s global mission
• Recruit employees who see international assignments as a challenging opportunity
• Recruit employees who demonstrate cultural openness
• Provide a realistic job and career preview
Training and career development
• Make international assignments a part of the career development process
• Encourage early international experience
• Provide ongoing mentoring and coaching
• Create learning opportunities during the assignment
• Use international assignments as a leadership development tool
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HRM practices which support effective expatriation cont.
Performance appraisal and compensation
• Differentiate performance management based on international manager roles
• Align incentives with expatriation objectives
• Tailor benefits to the international manager’s needs
• Focus on equality of opportunities, not cash
• Emphasize rewarding careers rather than short-term outcomes
Expatriation and repatriation activities
• Involve the family in the orientation and repatriation program
• Establish mentor relationships between international managers and executives from the home location
• Provide support for dual careers.
• Secure opportunities for the returning manager to use knowledge and skills learned while on the international assignment
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Different types of international managers according to the stage of subsidiary development
CONSOLIDATE
GROW
BUILD
PIONEER DEVELOPER ORGANIZER
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Individual skills for international managers in emerging countries
CULTURAL
SKILLS
Understanding of and sensitivity to etiquette, social norms, religions, ethnical characteristics
Knowledge and reference to arts and literature
Language skills can help
RELATIONSHIP
SKILLS
Ability to build and maintain a network of contacts
Ability to negotiate
Ability to learn
Ability to communicate without arrogance
LEADERSHIP
SKILLS
Ability to motivate
Ability to inspire
Ability to teach and coach
Ability to lead teams
Ability to respect
Role model
Paternalistic
Ethics
POLITICAL
SKILLS
PROFESSIONAL
SKILLS
Ability to understand the local political context and subtleties
Ability to communicate with opinion leaders and key decision-makers
Ability to integrate local national priorities into business strategies and practices
Knowledge and expertise in product and services
Performance demonstration
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More pressure to localize staff
From host country government
• To accelerate transfer of technology
• To develop human resources
• To create employment
From head office
• To cut costs
• To build competences
• To keep staff
From local staff itself
• To satisfy ambition
• To develop career
• To improve conditions
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Integrating local staff
• Career development and the ‘glass ceiling’
• Fairness
• Feedback
• Rewards
• Discipline and education
• Long-term policies
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Skills that Chinese employees consider to be important for international managers
• Cultural sensitivity
• Guidance
• Clarity
• Teaching orientation
• Expertise (to be tested)
• Short-term Presence (commitment?)
• Adaptability
• Fairness
• Morality
• Personal touch (paternalism)
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Skills that international managers consider to be important for Chinese employees
• Hard work and productivity
• Knowledge
• Language
• Desire to learn
• Loyalty
• Honesty and morality
• Initiative
• Leadership
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