MAXIMIZING BUSINESS PERFORMANCE

Maximizing Business Performance With Business Activity Monitoring

Abstract

International crises experienced by multinational corporations include both the premature return of expatriates due to failed assignments and the poor retention of returned expatriates due to failed repatriation. To reduce the direct and indirect costs inherent with expatriate failure, multinational corporations are striving to improve their capability to manage their expatriates before, during and after international assignments. This study highlights these issues and discusses the challenges for human resource professionals when managing expatriates. The results of the study presented in this paper suggest that the management of international human resources is increasingly being acknowledged as a major determinant of success or failure in international business. It concludes by proposing that a well-managed and proactive response to an international crisis may help an organisation retain experienced international employees.

TABLE OF CONTENT

CHAPTER1: INTRODUCTION5

Research Questions6

Scope of the study7

Aim of the study8

Significance of study8

CHAPTER 2: LITERATURE REVIEW9

Adaptation to Different Cultures13

Human Resource Management in Expatriate Management13

Woman Expatriate Managers15

Emerging Issues16

Management of Expatriate Managers18

Recruitment and Selection Stage18

Predeparture Preparation Stage20

Foreign Assignment Stage21

Repatriation Stage22

Concept of International Human resource Manager24

Definition of the Concept24

Identification of Skills26

Expatriate Management Issues in Human resource Firms28

Managing Expatriate Crises32

Failed Assignments due to Premature Return of Expatriates32

Expatriate Selection34

Pre-departure Training37

The Return of Expatriates39

Repatriation Agreement41

Repatriation Programs42

CHAPTER 3: RESEARCH METHODOLOGY44

Participants and Site44

Procedure44

Measures46

Data Analysis46

CHAPTER 4: RESULTS47

Expatriate Selection Process47

Pre-departure Training48

Repatriation50

Failed Assignments - Premature Return52

Failed Repatriation - Turnover Intention53

CHAPTER 5: DISCUSSION55

Expatriate vs. the Global Manager59

Behaviors and Competencies61

Comparing the Two Sets of Behaviors and Competencies67

Factors Associated With Expatriate Managers' Failure67

Individual Factors69

Willingness to Relocate70

Family Issues70

Expatriate Commitment71

Organizational Factors72

Determinants of Expatriate Managers' Success73

Developing International and Global Managers76

HR Management Practices76

HR Practices Support Development of Managers79

CHAPTER 6: CONCLUSION82

Implications87

REFERENCES92

BIBLIOGRAPHY105

CHAPTER1: INTRODUCTION

As organisations become globalise, there is an increasing challenge to use expatriates on international assignments to complete strategically critical tasks (Gregersen & Black 1996, Brewster 1998, Downes & Thomas 1999). Multinational corporations (MNCs) use expatriates, not only for corporate control and expertise reasons in vital global markets, but also to facilitate entry into new markets or to develop international management competencies (Bird & Dunbar 1991, Boyacigiller 1991, Rosenzweig 1994, Shaffer, Harrison & Gilley 1999, Forster 2000).

While it is recognised that Human Resource Management (HRM) problems are more complex in the international environment, there is also increased evidence to suggest that the management of international human resources is increasingly being acknowledged as a major determinant of success or failure in international business (Tung 1984, Dowling 1999, Hiltrop 1999). For renowned and established MNCs, failure to be able to communicate and coordinate their activities in international business has the potential to plunge them into a crisis. The crises confronting MNCs include failed assignments due to premature return of expatriates and the loss of their returned expatriates due to poor repatriation. These crises, due to poor expatriate management, can, therefore, threaten the organisation's performance and capabilities in the international arena.

Hence, to avoid a crisis in expatriate management is threefold. The first challenge for international human resource is planning effectively for the selection of expatriates for overseas ...