International

Staffing and Expatriation

Major Topics for Today

CHRM
Week 5

Do not send
typed
application
letter! The
French use
graphology
as a means
of selection!

Do not
mention your
salary first!
Payment will
be discussed
after you
have been
hired!

Make sure
your shoes
and your bag
match! It is an
indicator that
you take care
about the
details!

France

Spain

Italy

What is International HRM?

What is IHRM?

Typical Topics of Books on IHRM:

Training
Recruitment
Organisation
Expatriates
Culture
Industrial
Relations

Leadership
Communication
Pay
Motivation
Planning
Performance
Appraisal

What is International HRM?

Different Orientations to International
Management
Staffing International Operations
Expatriation

What is IHRM?
Derek Torrington:
IHRM has the same basic dimensions as HRM
in a national context, but with added
features:

It operates on a greater scale

Strategic considerations are more complex
Operational units vary more widely and require
coordination across more barriers

Organizational Orientations

Different Orientations to
International Management

Four ideal types of Head Office - subsidiary

relationships:

How do international firms

organize and manage the HRM
function on a global basis?

Staffing International
Operations

Ethnocentric

Polycentric

Regiocentric

Geocentric

Should international
organisations employ

Locals or Expatriates?

Staffing International
Operations

Advantages of Being Locally

Responsible

Locals versus Expatriates???

Knowledge of local operations

Incentives to local personnel
Cost
Control
Long-term focus
Management Development

Externally
better market acceptance
likely to be more
receptive to local trends,
emerging needs
Acceptibility to the
authorities and the
business community

Internally
credibility vis-a-vis the
workforce
high context HR
practices cause less
tension

Localisation of People
Management
Low context practices
job design
objective setting
quantitative
measures of
performance

High context practices

working hours
conflict resolution
performance
appraisals
performance for pay

International Recruitment

Organisations are increasingly recruiting

beyond their national borders
Not just to staff MNE, but also for domestic
purposes
When recruiting internationally organisations
need to be aware of:

International labour market

Different types of labour market
Appropriate recruitment sources

International Recruitment
Methods

Headhunting

Cross-national advertising,

Online job databases

Internet, company webpages

International Graduate Programmes

Expatriation
What is the expatriate cycle?

The purpose of expatriation

(Pucik)

Activity
Long

Why do MNEs send people to work

abroad?

Corporate
agency

Competence
development

(Control/knowledge
transfer)
Short

Problem solving
Demand-driven

Career
enhancement

Learning-driven

The Expatriate Cycle

THE U-CURVE OF CROSS-CULTURAL

ADJUSTMENT J.S. Black & Mendenhall, 1991

Selecting
expatriates

Honeymoon
Mastery

Repatriation

ADJUSTMENT

Preparation
and
orientation

Adjusting to
the expatriate
role

Expatriate
compensation

Adjustment

Culture shock

TIME

Managing
performance
of expats

Typical problems of
expatriation

Conflicts with locals

Not understanding local culture
Increased stress
Family conflicts
No job for spouse
Not performing up to expectations

Factors Associated with

Successful Expatriation
A) Personal characteristics
1) Technical competence
2) Stress tolerance
3) Cultural flexibility
4) Communication skills
5) Cultural empathy
B) Adaptability of spouse
C) Subsidiary-parent company relations

Formal Policies for Dual-career

Couples

Adjustment and Expatriate

Success/Failure

Factors of adjustment:

Factors to do with the individual (e.g. self-efficacy,

relational and perception skills, self-confidence, cultural
empathy, emotional stability, language ability, previous
international experience)
Non-work factors (e.g. family situation, new behaviours)
Organisational factors (e.g. organisational culture, social
support, logistical help)
Job factors (e.g. role novelty, role conflict, role overload)

Career and life planning

Inter-company networking
Job-hunting, job search asssisstance
Continuing education
International partner assistance programs
Intra-company employment
Commuter marriage support
Short-term assignments
Tuition reimbursement
Joint career plan counselling
Mentoring

Are there alternatives to

expatriation?

Are there alternatives to

expatriation?

Alternative Forms of
International Work

Short-term assignments
The international commuter (weekly or biweekly )
The frequent flyer
What are the advantages and
disadvantages?

Major Topics for Today

Exercise: Different Orientations to

International Management
Exercise: Staffing International Operations
Exercise:Match the orientations with the
sources of recruitment
Video: Expatriation

Global integration without

expatriates (electronic
communication, international
commuters)
Impatriation: local managers
transferred to HQ

International
Staffing and Expatriation
CHRM
Seminar
Week 5

Different Orientations to
International Management

How do international firms organize

and manage the HRM function on a
global basis?

Ethnocentric Approach

Advantages:

Disadvantages:

Exercise
What are the advantages and
disadvantages for the company
for adopting a given orientation?

Polycentric Approach

Regiocentric Approach

Advantages:

Disadvantages:

Geocentric Approach

Advantages:

Disadvantages:

Advantages:

Disadvantage:

Staffing International
Operations

Internal Recruitment (from

within the local subsidiary)

Exercise: Staffing the

International Organisation

Advantages

Disadvantages

Identify the advantages and disadvantages

for the different options in staffing.

Internal Recruitment
Inter-company (Cross-border) Recruitment
External recruitment from country of location
External recruitment from third country

Inter-company (Cross-border)
Recruitment

Advantages

External recruitment from country

of location

Disadvantages

Advantages

Disadvantages

Exercise:Match the orientations

with the sources of recruitment

External recruitment from third

country

Advantages

Disadvantages

Ethnocentric

Polycentric

Regiocentric

Geocentric

Parent Country
Nationials
(Expatriates)
Host Country
Nationals (Locals)
Third Country
Nationals

Video
What are the typical problems of
expatriation and repatriation?

What can the organisation do to

avoid expatriation and re-entry
problems?

What can the organisation do to avoid

problems of repatriation?

Long-range manpower planning and

career development
Systematic examination of alternative
reentry positions
Formal orientation for returning
expatriates
Skill and competency assessment to use
new resources

Managing the process of expectations

Providing career counseling prior expatriation and
reentry
Limiting the time of expatriation (3-4 years)
Temporary visits (project assignments) in the
home country and company
Assigning mentors of home country to provide
information
Shadow system (situation of similar colleagues)

What HRM could do to overcome

cross-cultural difficulties?

What can the organisation do to avoid

problems of repatriation? (Continued)

A case of expatriation

Better selection
Better training
More time before
foreign assignment
Visits of locals to
parent company
Cultural awareness
training

Have locals also in

top management
Adapt HR practices
to local culture
Select locals who fit
the company
culture
Focus on
socialisation
Transfers both ways