Role of family in international assignment
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Transcript of Role of family in international assignment
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The Role of Family in International Assignments
IBUS 618
Chris Chee
Diego Hernandez
Ken Lee
Eugenia Paw
Bilinc Yurtseven
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Presentation Outline
o Introduction: Diego Hernandez
o Cultural Differences: Chris Chee
o Problems : Bilinc Yurtseven
o Recommendations: Eugenia Paw
o IHRM Policies: Ken Lee
o Oracle & Conclusion : Chris Chee
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Expatriate Failure
• Returning Home before the period of assignment is completed
• Underperforming on assignment as a result of difficulties in adapting to their new lives
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The Role of Family in International Assignments
Expatriation Process:
“Today’s workers are less willing to sacrifice their own and their family’s lifestyle without a clear understanding of the benefits to them.” (Leong, K. 2003)
Repatriation Process:
The longer the person is away from the home country, the more likely there will be readjustment problems upon return.
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Factors Moderating Performance
• Inability to Adjust to Foreign culture
• Length of Assignment
• Willingness to move
• Work-Related Factors
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Personal Experience
Going Abroad to Ecuador:
• Willingness to Move: Spouse Career, Children’s Education
• Length of Assignment: Affected by unhappy spouse
• Inability to Adjust: Frustration which led to failure
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Costs of Failure
Direct:• Airfares • Relocation Expenses• Salaries• Trainings
Indirect:• Loss of market share• Difficulties with Host government officials• Brand image
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Repatriation
• Staff Availability
• Return On Investment: “US Multinationals spend around 1 million dollars on each expatriate”
• Knowledge of Transfer
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Country Profile
USA•Japan•United Kingdom
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USA• Punctuality is important
• Low context culture
• Individualistic
• Relationship Build up - Task orientation
• Explicit Communication Style & Time Orientation
• Persuasion - Instrumental orientation
• Long work days, little vacation time
• Disagreements are common and acceptable
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Japan
• High context culture
• Gesture-free body language
• Personal interrelation is a traditional feature of Japanese society
• Importance of saving face
• Punctuality is essential
• Long negotiations process
• Long periods of silence during negotiation process
• Women’s roles: managing household and care of children
• Long-term relationships are positively encouraged
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United Kingdom
• Low context society
• Polite and courteous
• Formal and detached when faced with difficult situations
• Punctuality is important
• Decision-making is often a slow and systematic process due to rules
• Teamwork is important with strong sense of individuality
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Expatriate Failure Survey
A survey for United States MNCs revealed that European and Japanese multinational corporations (MNCs), identified significant expatriate failure in U.S. companies for four reasons:
•The spouse's inability to adjust to a different physical or cultural environment•Spouses Social Life•Children’s education•The employee's inability to adjust.(The employee's personal or emotional immaturity)
•Other family problems
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Important issues to cover when screening the family are
• * Level of marital stability
• * Responsibilities for aging parents
• * Chemical dependencies on the part of anyone in the household
• * Existence of learning disabilities in a child
• * Behavioral problems in teenagers
• * Emotional stability of family members
• * Strength of family ties to the community or to other family members not going overseas
• * Strength of children's attachment to extracurricular activities
• * Family cohesiveness
• (Avoid expatriate culture shock HR Magazine, July, 1993 by Marvina Shilling)
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The role of the spouse…(Case of Japan)
• A study of Japanese expatriates found that family related problems were the most important issues in expatriate failure
( Fukuda & Chu 1994)
o Adjusting to foreign cultureo Concerns about their mate’s performance at worko Children’s educationo Stage of the family life-cycleo Government restrictions on their employmento Financial Concerns ( Dual Career Couples)
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Children & Education
• Japanese executives indicate that children’s education
is the main problem
• Spouses and children had to return to Japan
• 64.7% American, 56.3% British expatriates in Japan, send their children to International schools.
• Small number send their children to Japanese schools. ( 12.5% UK, 2.9% USA)
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Satisfaction With Life Abroad
• American and British expatriates and their families were asked 8 items related to satisfaction with life in Japan.
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Recommendations
• Select the right person
• Offer Pre-departure training programs
• Provide Support services
• Short-term assignments
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Select the Right Person…
• Assess skills, competencies, and international experience
• Assess individual and his/her family’s ability to adapt
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Pre-departure Training Programs…
• Cultural awareness programs– Level of interaction (High or Low)– Degree of similarity (High or Low)– Training methods
• Preliminary visits– Provide a preview– Introduction to the business
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Pre-departure Training Programs Cont.
• Language training– Key to adjustment– Gain access to social support
structures– Important in terms of task performance and cultural adjustment
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Support Services
• Spousal career assistance– Job search assistance– Inter-company networking– Career counseling and support
• Finding suitable schools• Additional orientation programs
– Language training
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Short-term assignments
• Extended business trips– Range from several months to one
year• Commuter expatriate assignments
– Commute from home country on a regular basis
• Virtual expatriate assignments– Manages from home-base
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U.S. Multinational Corporation
Staffing Policies
• Used parent-country nationals (PCNs) for some control functions– Finance; Accounting
• Used local or third country nationals (TCNs) served for market-sensitive functions– Marketing; Advertising
• Used host-country nationals (HCNs) for greater extent of all levels of management– Management Level
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British Multinational Corporation Cont.
Expatriate Policies• Selection
– Informal Interview * – Formal Interview
– Psychometric Testing • Training
– Informal Briefing– Language Training
– Cultural Orientation • Repatriation
– Sink or Swim Attitude
* Informal interview is more reliable because it can avoid potential
candidates intentionally concealing family concerns and issues
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British Multinational Corporation
• Staffing Policies
• Use of parent-country nationals expatriates to run foreign subsidiaries– Management Development– Objective of control of local operations
• Intention to employ more third-country nationals (TCNs)
• Ex. Imperial Chemical Industries Ltd. (ICI), Britain’s largest industrial is one of the surveyed companies, and it employed 250 TCNs out of 550 expatriates.
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U.S. Multinational Corporation Cont.
Expatriate Policies• Selection
– Performance Record– Psychological Tests – Interviews with both candidate and spouse
• Interviewing both candidate and spouse benefits both the company and the candidate’s family
• Training2/3 of the respondents didn’t have pre-departure training programs
• Trend of employing local nationals • Short-term nature of such assignments • Doubt over the effectiveness of such training program and lack
of time • Fear that employees may leave the company
• Repatriation Lack of clear repatriation policies and comprehensive planning
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Japanese Multinational Corporation
Staffing Policies
• Used PCNs more extensively in their top and middle management positions in their oversea operations
• North American operations were relatively more important to Japanese MNCs
• Japanese MNCs prefer to send older and more experienced managers for international assignments
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Japanese Multinational Corporation Cont.
Expatriate Policies• Selection
– Managerial talent was the most important criteria for selecting candidates of CEO
– Gender of candidate was being considered in the selection
– Usually women would not be assigned as expatriates • Training
– Provide more rigorous training programs– Stress the importance of language training
• Repatriation – Closer communication with headquarters and
exchange of information – Japanese expatriates have certain planned career
paths at headquarters • Well planned repatriation policies and benefits can reduce family
problems, especially spouse’s dissatisfaction for international assignments.
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Work Family Relationships Oracle
Company Profile– Based in Redwood City– Founded in 1977– 40,000+ employees in 1977– Enterprise software giant provides a
range of tools for managing business data, supporting business operations, and facilitating collaboration and application development.
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Oracle Expatriate Work/Family Relationships• Expatriate benefits
– Work Relocation reimbursement of up to $20,000
– All phone calls to parent country are reimbursed
– Club memberships
– 4 trips back to parent country per year
– Schools are paid for
– Flexible work schedule, 3 months at host country, 3 months at home country
– Employee Assistance Program (EAP)
– LifeWorks Family Resource and Referral Program
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