Lecture 10 Flashcards
Companies have been sending managers to manage overseas business operations. In most cases, most of the time, these expatriates are accompanied by family members.
These expatriates can be from the:
home country
host country
third country
Although there are justifiable reasons why expatriates can be selected, it is known that failure rate is
high due to problems related to lack of adaptation to the local environment, especially among expatriates of US origin.
There are three synonymous terminologies which are used to refer the broadly accepted expression “ expatriates”.
Expatriates
Repatriates
Inpatriates
Transpatraites
Expatriates-
home country managers sent out
Repatriates-
returning home expatriates
Inpatriates-
receiving local country managers in the headquarters.
Transpatraites-
are managers brought from a third country
Expatriate’s Recruitment, Selection and Assignment
Home country assignment (step one)
Apply rigorous recruitment policy for foreign assignment when selecting (step two)
Orientation (all family members should participate)
Global assignment
Home country assignment (step one)
internal source (look for internal employees first)
external source (hire internationally experienced
recent immigrants with good connection in their home country)
Apply rigorous recruitment policy for foreign assignment when selecting (step two)
volunteer (apply psychometric test on cultural sensitivity, hardship, family readiness, etc)
involuntary (provide incentives, promotion, promise)
Understanding Expatriate’s Adaptation Period in Phases
Stage one: Excitement
Stage two: Disillusionment
Stage three: Culture shock
Stage four: Adapting to the new culture (adjustment)
Stage five: Reverse culture shock (during return to home
country)
Stage six: Readjustment to your own culture
Expatriates and tourists in the initial stage get excited by the opportunity they have to visit new friends, historical places and for being taken care by their hosts. This…
“romance with the new place” might last from 3 to 7 days.
When an expatriate has to take care of himself/herself. The new life would begin with
orientation of the place where one lives, getting means of transportation, shopping necessary items and dining places and communicating with the person on the street for directions.
Culture Shock Cycles in Timeframe
Phase one, the excitement stage is estimated to last few days or weeks
Phase two, the disillusionment will last 2-5 months
Phase three, the culture shock phase, may last up to four months
Phase four, the adaptation phase is expected to follow after five months
At phase three, expatriates will undergo
adaptation.
Research indicates that the most effective global managers are likely to have problems of
adaptation
Managers who are described as average in the US suffer little or
mild culture shock. This is due to the sharp contrast that exists between the US and other countries’ management styles.
Culture shock is not limited only to the expatriate but also to his/her family members. In fact studies show that spouses who stay at home suffer the most due to
lack of activities and lack of communication with the local people due to language barrier.
Culture shock shouldn’t be totally viewed as a negative phenomenon; culture shock is an interactive process which indicates
the negotiation of two cultures.
Expatriates therefore should be able to manage the shock rather than avoiding it.
In order to adapt to a foreign environment, expatriates have to be
detached, at least temporarily from their own country, culture, organization, friends, families and parents.
As a result of detachment during adaptation, individuals may manifest signs of:
embarrassment
disappointment
frustration
impatience
anger
The process of adjustment can be measured by
the extent in which one accepts trading his/her own culture with a foreign culture.
The process of change can be felt after three months.
The level of adjustment is strongly dependent upon
the similarities of the two cultures (home and host countries cultures).
The psychological preparation of the expatriates
Success of the subsidiary firm
The adaptation of the family members
Political relationship of the home and domestic countries
Managing culture shock: What individuals can do:
Regular physical exercise
Being interested in the culture of the country (participate in events, study their arts and music)
Writing memoirs can be your hobby
Getting acquainted with the local people
Getting enrolled in continuing education (language, culture, history)
Minimizing culture shock: What IC can do
Provide effective training time
Selection based on both managerial and non-managerial skill
Training should include spouses and children
Send the expatriates home during holidays (twice a year)
Apply psychometric test during selection for foreign assignments.
Create a couple career family profile
Send expatriates and the family home twice a year
–Family reunion
–Retraining
–Socializing with colleagues etc
__ reentry is more difficult than any __ reentry
Professional
personal
Most professionals might not get the
same position when they return (out-of-sight out-of- mind reality is a possibility)
Organizations at the headquarters are more dynamic than foreign subsidiaries; as a result, the returning expatriate might
feel lost.
The expatriates can be bored with the
limited responsibility they might have.
Reentry to your own culture: Reverse culture Shock
Social alienation
The loss of “ foreign acquired culture and friends) “The feeling of everywhere but nowhere”
Companies should help expatriates to maintain close contact with
the home organization while abroad.
Recognition of returning expatriates helps the
organizations and future expatriates to benefit from their experiences.
Recognized expatriates perform better than those
without recognition.
By organizing a briefing session, the management at the headquarter can maximize the benefit the experience of returning expatriate. The lesson learned is
instrumental for creating an international synergistic management group.
Indeed, expatriates come back with more knowledge after serving abroad than before taking such assignment:
a) They will have better managerial skills
b) They develop broader knowledge (they know how much they don’t know)
c) They become sensitive to foreigners as they had to go through that experience themselves
d) They develop the ability to work with foreigners
e) They are good connection to the foreign country they used to work in.
