Post on 10-Apr-2018
transcript
8/8/2019 IHRM Final (1)
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Presented by:Presented by:--
GursharanGursharan KaurKaur MandeepMandeep Jaggi Jaggi
MunishMunish KaulKaul RobinRobin InderpalInderpal SinghSingh
SachulSachul Jain Jain TanveerTanveer NawazNawaz
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What is an expatriate?
An employee who is working and temporarilyresiding in a foreign country
Some firms prefer to use the term ³international assignees´
Expatriates are PCNs from the parent country operations,TCNs transferred to either HQ or another subsidiary, and HCNstransferred into the parent country
Global flow of HR: more complexity in activitiesand more involvement in employees' lives
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International Assignments Create Expatriates:
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Different Stages of Stress Process of an Expatriate
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Expatriate Failure : a broader definition
Definition: (1) Premature return of an expatriate = aselection error
(2) Under-performance during an internationalassignment : poor adjustment, inability to handle thenew responsibilities = a selection error and a lack of pre-departure training
(3) Retention upon completion : leaving the firmsoon after repatriation = an integration problem of repatriates
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The Expatriate Problem
Relatively High Failure Rates
Between 16% & 40% of all American employeessent abroad to developed nations, and almost 70%
sent to less developed nations return home early
Average cost per failure to the parent firm can be
as high as three times the expatriate¶s annual
domestic salary plus the cost of relocation
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General reasons for Expatriate Failure
Inability of spouse to adjust
Manager¶s inability to adjust
Other family problems
Manager¶s personal or emotional maturity
Inability to cope with larger overseas responsibility
Lack of technical competence
Difficulties with new environment
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Expatriate Failure Rates
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International Assignments: Factors Moderating Performance
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Specific reasons for Expatriate Failure
US Firms
Inability of spouse toInability of spouse toadjustadjust
Manager¶s inability toManager¶s inability toadjustadjust
Other family problemsOther family problems Manager¶s personal or Manager¶s personal or
emotional immaturityemotional immaturity
Inability to cope withInability to cope withlarger overseaslarger overseas
responsibilitiesresponsibilities
Japanese Firms
Inability to cope withlarger overseasresponsibilities
Difficulties with the newenvironment
Personal or emotionalproblems
Lack of technicalcompetence
Inability of spouse to
adjust
European MultinationalsEuropean Multinationals: Inability of spouse to adjust.Inability of spouse to adjust.
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Costs of Expatriate Failure
Direct costsDirect costs: Airfares
Associated relocationexpenses
Salary and benefits
Training anddevelopment
Averaged $250,000 = Averaged $250,000 = ¼ ¼207.000207.000 per earlyper earlyreturnreturn
C
osts vary accordingC
osts vary accordingtoto: Level of position
Country of destination
Exchange rates
Whether µfailed¶manager is replacedby another expatriate
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The cultural shock
PCNs on foreign assignments may experience culturalshock.
Cultural shock is a psychological phenomenon that may lead
to feelings of fear , helplessness, irritability, anddisorientation.
Acculturation is the processes by which a person
understands a foreign culture and modifies their behaviour tofit into it.
Acculturation typically proceeds through four phases.
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The Phases of Cultural Adjustment
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Differences in culture Giving Instructions
Asking Questions
Dealing withChallenges
Authority
Office Relationships
Personal Status
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Ctd«
Punctuality
Meaning of YES
Hierarchies
Reprimanding Staff
Privacy
Accepting of Others
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Tactics ToTactics To Build Productivity orBuild Productivity or
Reduce Expatriate FailureReduce Expatriate Failure
Training
Follow-up
Cultivate Independent Thinking
Encourage Self-Sufficiency
Group Recognition
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CtdCtd««
Understand Local Labour Laws
Study
Accommodate Differences
Practice Good Manners
Orientation
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Conclusion
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Thank You All !!!