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Presented by:Presented by:--

GursharanGursharan KaurKaur MandeepMandeep Jaggi Jaggi

MunishMunish KaulKaul RobinRobin InderpalInderpal SinghSingh

SachulSachul Jain Jain TanveerTanveer NawazNawaz

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What is an expatriate?

An employee who is working and temporarilyresiding in a foreign country

Some firms prefer to use the term ³international assignees´

Expatriates are PCNs from the parent country operations,TCNs transferred to either HQ or another subsidiary, and HCNstransferred into the parent country

Global flow of HR: more complexity in activitiesand more involvement in employees' lives

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International Assignments Create Expatriates:

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Different Stages of Stress Process of an Expatriate

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Expatriate Failure : a broader definition

Definition: (1) Premature return of an expatriate = aselection error 

(2) Under-performance during an internationalassignment : poor adjustment, inability to handle thenew responsibilities = a selection error and a lack of pre-departure training

(3) Retention upon completion : leaving the firmsoon after repatriation = an integration problem of repatriates

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The Expatriate Problem

Relatively High Failure Rates

Between 16% & 40% of all American employeessent abroad to developed nations, and almost 70%

sent to less developed nations return home early

Average cost per failure to the parent firm can be

as high as three times the expatriate¶s annual

domestic salary plus the cost of relocation

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General reasons for Expatriate Failure

Inability of spouse to adjust

Manager¶s inability to adjust

Other family problems

Manager¶s personal or emotional maturity

Inability to cope with larger overseas responsibility

Lack of technical competence

Difficulties with new environment

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Expatriate Failure Rates

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International Assignments: Factors Moderating Performance

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Specific reasons for Expatriate Failure

 US Firms

Inability of spouse toInability of spouse toadjustadjust

Manager¶s inability toManager¶s inability toadjustadjust

Other family problemsOther family problems Manager¶s personal or Manager¶s personal or 

emotional immaturityemotional immaturity

Inability to cope withInability to cope withlarger overseaslarger overseas

responsibilitiesresponsibilities

 Japanese Firms

Inability to cope withlarger overseasresponsibilities

Difficulties with the newenvironment

Personal or emotionalproblems

Lack of technicalcompetence

Inability of spouse to

adjust

 European MultinationalsEuropean Multinationals: Inability of spouse to adjust.Inability of spouse to adjust.

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Costs of Expatriate Failure

 

Direct costsDirect costs: Airfares

Associated relocationexpenses

Salary and benefits

Training anddevelopment

Averaged $250,000 = Averaged $250,000 = ¼ ¼207.000207.000 per earlyper earlyreturnreturn

  C

osts vary accordingC

osts vary accordingtoto: Level of position

Country of destination

Exchange rates

Whether µfailed¶manager is replacedby another expatriate

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The cultural shock

PCNs on foreign assignments may experience culturalshock.

Cultural shock is a psychological phenomenon that may lead

to feelings of fear , helplessness, irritability, anddisorientation.

Acculturation is the processes by which a person

understands a foreign culture and modifies their behaviour tofit into it.

Acculturation typically proceeds through four phases.

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The Phases of Cultural Adjustment

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Differences in culture Giving Instructions

Asking Questions

Dealing withChallenges

Authority

Office Relationships

Personal Status

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Ctd«

Punctuality

Meaning of YES

Hierarchies

Reprimanding Staff 

Privacy

Accepting of Others

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Tactics ToTactics To Build Productivity orBuild Productivity or

Reduce Expatriate FailureReduce Expatriate Failure

Training

Follow-up

Cultivate Independent Thinking

Encourage Self-Sufficiency

Group Recognition

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CtdCtd««

Understand Local Labour Laws

Study

Accommodate Differences

Practice Good Manners

Orientation

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Conclusion

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Thank You All !!!