16.3: Expatriate Managers Flashcards
What is an expatriate manager?
An expatriate manager is a citizen of one country who is working in another country, typically transferred abroad by their employer to manage a subsidiary or a segment of the business.
What is expatriate failure, and what are its consequences?
Expatriate failure is the premature return of an expatriate manager to their home country, often due to their inability to adapt to the foreign environment.
Consequences include high resignation rates and significant costs to the parent firm.
What are some common reasons for expatriate failure?
Reasons include the inability of the spouse to adjust, the manager’s inability to adjust, other family problems, lack of personal or emotional maturity, and inability to cope with larger overseas responsibilities.
How do expatriate failure rates vary among different nationalities?
Historically, U.S. multinationals have experienced higher expatriate failure rates than European or Japanese firms.
However, recent studies suggest an overall decline in expatriate failure rates due to improved selection and training.
Why is the inability of a spouse to adjust a significant reason for expatriate failure?
The spouse’s adjustment is critical as they often face challenges such as making new friends, dealing with language barriers, and potential restrictions on employment, which can impact the expatriate’s ability to stay and perform effectively.
How can organizations minimize expatriate failure?
Companies can minimize expatriate failure by providing cultural training, ensuring spousal support, developing clear assignment objectives, and fostering good communication throughout the assignment.
What is the debate about sending women on international assignments?
The debate centers on whether to send women expatriates to countries with cultural norms that traditionally limit women’s public roles. While there are challenges, women often succeed in these roles, but cultural barriers and restrictions on women’s activities in business and social life can still pose issues.
What is expatriate failure, and what can cause it?
Expatriate failure is when an expatriate manager returns home prematurely, often due to inability to adjust to the host country, personal or family issues, or dissatisfaction with the job. Costs to the firm can be significant, sometimes three times the expatriate’s annual domestic salary.
What are the primary reasons for expatriate failure according to Rosalie Tung’s study?
Tung identified the inability of the spouse to adjust, the manager’s personal or emotional maturity, and the inability to cope with larger overseas responsibilities as key reasons for failure.
How have expatriate failure rates changed over time?
Although earlier studies showed high failure rates, more recent studies suggest that rates have declined due to better selection and training practices, with some studies reporting failure rates as low as 6.3%.
What is the most common reason for expatriate assignment failure?
The most common reason is the lack of partner (spouse) satisfaction, which often stems from the inability of the expatriate manager to adjust to foreign postings due to cultural differences or lack of support for the spouse’s career.
How does the HSBC Expat Explorer Survey rank countries for expatriates?
The survey ranks countries based on economics, experience, and family life for expatriates. Countries like Singapore, Norway, and New Zealand rank highly, while countries like Bolivia, Venezuela, and Kuwait are ranked lower.
Which countries are considered the most and least friendly towards expatriates and foreign visitors according to the World Economic Forum?
Iceland, New Zealand, and Morocco are among the friendliest countries for expatriates and foreign visitors, while Bolivia, Venezuela, and Kuwait are among the least friendly.
What are the four dimensions identified by Mendenhall and Oddou to predict success in a foreign posting?
The four dimensions are:
Self-orientation: Attributes that strengthen the expatriate’s self-esteem, confidence, and mental well-being.
Others-orientation: The ability to interact effectively with host country nationals.
Perceptual ability: Understanding why people of other countries behave as they do.
Cultural toughness: The relationship between the cultural differences of the home and host country and the expatriate’s assignment success.
What is a ‘global mindset’ and why is it important for expatriate managers?
A global mindset is characterized by cognitive complexity, a cosmopolitan outlook, and an openness to the world. It is essential for managing the complexity and ambiguity of working across diverse cultural environments.
