INTERNATIONALASSIGNMENTCASE: Floundering Expatriate

Michael SimiyuIBA 2007 at Lauder Business School

McGraw-Hill/IrwinInternational Business, 5/e

© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

Overview

1.Introduction

2.Definitions;

-Case study facts.

-Problems.

-Recommendations.

-Conclusions.

3.Interlude

4.Facts about International career management;

-Failures, Successes,Training and Repatriation.

5.Reference.

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What is the point of getting an international experience when it doesn`t get you a decent job back home?

...The slogan that international experience is a key value and a prerequisite for promotion into the ranks of senior management...(Germany expatriate, Cited in Stahl and Chua,2003,case B,p.4)

...There must be companies out there that value international experience...(American expatriate, Cited in Stahl and Chua,2003,caseB,p.2)

1.Introduction3

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2.Definitions

1.Who is an Expatriate?

-Citizens of one country working in another country.

2.Who is an Inpatriate?

-Citizens of a foreign country working in the home country of their multinational firm.

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Case Study Facts

(Donaldson) an American executive for Argos, has been pushed to Europe (Zürich) to form a united European management team for Argos newly acquired compaines.

He has been picked for this position because of his background as an academic in Egypt and experience in forming a cross-divisional and cross-functional teams in the United states.

Above all this qualifications, he has no experience living and working anywhere in Europe.

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Problems

Donaldson has serious family problems. He speaks no other European language. He has no experience of gluing a group of

companies and management organization together(Europe).

He is not a good listener either communicator. Argos culture of results oriented(no bad news

and make it work). Argos way of developing leadership talent by

using appointing power.

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Recommendations

Donaldson needs to be returned to the US early(Besser ein Ende mit Schrecken als ein Schrecken ohne Ende).

Argos need a local European executive to do the job.

Argos must give its US executives more support and cultural guidance.

Argos must manage organizational and behavioral change on several levels.

Waterhouse must play a role in resolving the dilemma.

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Conclusions

Identify specific goals for the European team. Provide Donaldson with cross-cultural coaching

and mentoring. Provide a cross-cultural training for Donaldson

family. Developing leadership talent either domestic or

internationally should be an ongoing patnership between an organization and personnel.

Intercultural competence cannot be copied but it can be learned.

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Expatriate Failure

Starts with Premature return of the expatriate manager to his/her home country.

Due to the lack of or failure of the firm’s selection and training policies for expatriate managers.

Results in an expatriate’s resignation or premature return from a foreign posting.

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Expatriate Failure Rates

16-40% of US expatriates return home early from developed nations

70% of US expatriates return home early from developing nations

15-20% of European expatriates return home early from both developed and developing Nations.

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Expatriate Failure Rates11

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Reasons for Expatriate Failure

1.US Firms Inability of spouse to adjust (top reason) Manager’s inability to adjust Other family problems Manager’s personal or emotional immaturity Inability to cope with larger overseas responsibilities

2.European Firms Inability of spouse to adjust (usually the only reason)

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Four Attributes to Success

1.Self-Orientation Strengthen expats high self-esteem, self-confidence and mental

well-being2.Others-Orientation

Enhance expats ability to interact with host-country nationals (relationship building, willingness to use host language)

3.Perceptual Ability Expats ability to empathize and understand why people in

host-country behave the way they do4.Cultural Toughness

How well an expatriate adjusts to a particular posting tends to be related to the country of assignment

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Training for Expatriate Managers

1.Cultural Seeks to foster an appreciation of the host-country’s

culture (include spouse and family)2.Language

Improves expatriate’s effectiveness and rapport with local employees

Improves expatriate’s ability to relate to foreign culture

Fosters a better image of the firm3.Practical

Helps expatriate and family adjust to the daily life of the host country

Uses expatriate community as and informative and supportive network

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Repatriation of Expatriates

Often overlooked but a critically important issue

Should be considered the final link in an integrated process that connects: effective expatriate selection and training completion of the expatriate assignment reintegration of the expatriate into their national

organization

Successful repatriation contributes to the transfer of knowledge and skills throughout the firm

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5.References

The case study floundering expatriate by Gordon Adler

International human resource management and international assignment book by Michael J. Noreen Heraty and David G.Collings.

What drives and frastrates international assignees? case study by Stahl,Chua and Mendenhall.

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