International Personal Selling and Personnel Management

Session 10c

Learning Objectives

Examine companies' expatriate management strategies

Describe the different types of employees suited for a company's international operations

Address issues related to expatriate management, such as motivating international employees and ensuring successful assignment performance and repatriation

International Personnel Issues

Hiring expatriates or locals is a function of the company’s involvement in the market

Market presence, entry mode and commitment to market determine: Size of the sales team Types of sales representatives

International Presence Companies using home-country middlemen

Rely on sales force of the intermediary for international sales

Companies using host-country brokers and agents Rely on sales force of the intermediary for international

sales Companies using host-country manufacturers’

representatives and distributors Are engaged, at some level, in personal selling Hires local salespeople to call on distributors May have local sales office, or a wholly-owned subsidiary

that engages in the marketing function

Expatriates: Home-Country Nationals

Preferred by companies whose products are at the forefront of technology: Preferred when selling relies on extensive

training and highly specialized information Preferred where there is a greater

interdependence between overseas unit and corporate headquarters

Expatriates: Home-Country Nationals, continued

Disadvantages: High costs Cultural barriers Lack of local personal connections

in the local environment Difficulty finding employees willing

to take on international assignments

Expatriates: Third-Country Nationals

Employees working temporarily in the assignment country who are NOT nationals of that country OR of country in which headquarters is located

Speak numerous languagesFamiliar with customs and business

practices in different environmentsHave learned, through experience, to adapt

optimally for international assignmentsCost less than home-country nationals

Host-Country Nationals

Local salespeople who work in the home country for an international corporation

Understands the business environment and business practices in the company’s home country

Well trained technically

Willing to return to home country to work for the multinational firm

Long Distance International Selling

Selling via the Internet or mail is likely to become an important venue in approaching new customers overseas in the near future.

Costs of distance selling are lower, allowing for greater market coverage,but the selling infrastructure (mail, Internet accessibility) lags behind in developing countries.

Managing International Employees

Companies that attempt to transplant personnel policies proven successful in the home country will run against obstacles in different international environments.

Issues related to culture come into play

Buyer-Seller Relationship

Certain selling approaches work better than others Hard sell Eye-to-eye contact Business cards Negotiation Building relationships

Understanding Values

National CharacterOrganizational CultureIndividual PersonalityCONTENT: substantive aspects of the interaction

STYLE: rituals, format, mannerisms, and ground rules

National Character

Personality traits shared at the national level Individualism Power Distance Uncertainty Avoidance Masculinity/Femininity

Low- and High-Context Cultures

Low Context cultures use formal, direct communication that is verbally expressed.

High Context cultures use extensive nonverbal information to convey the message: cues, gestures, and facial expressions.

Successfully Managing Expatriates

Success requires:1) Effective selection /

screening2) Training and development

strategies3) Motivating for peak

performance4) Ensuring successful

repatriation 50% of

expatriateassignments

FAIL

Recruiting Expatriates: Ideal Expatriate

Has high cultural sensitivity and awareness

Has the ability to adapt behavior in cross-national settings

Has high level of resiliency Has extensive international knowledge

and willingness to gain it Has a strong desire to work overseas

Culture Shock and Motivation

A pervasive feeling of anxiety resulting from one’s presence in an unfamiliar culture.

Lessen shock by: Helping employees know what to expect:

Physical Environment Social Environment

Creating additional incentives:- Extrinsic factors: compensation, leave and

family policies, and career incentives

Compensation Incentives

Cost of living adjustment

Housing allowance Education allowance Home-leave allowance Moving allowance Repatriation allowance

Expatriate Obstacles

Gravitating toward home-country expatriates

Relying extensively on expatriate groups and forums (websites that unite expatriates in a region, newspapers, etc.)

Isolation

Isolation Going Native

Repatriation Issues

Vast company changes Loss of status Lack of community Reverse culture shock

AVOID by maintaining connection to company headquarters

Session Summary

Addressed expatriate management strategies

Described the different types of employees hired for firms’ international operations

Addressed issues related to ensuring the success of international assignments