Copyright Atomic Dog Publishing, 2002 International Personal Selling and Personnel Management...

Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002

International Personal Selling and Personnel Management

Dana-Nicoleta Lascu

Chapter 15


Chapter Objectives

• Examine companies' expatriate management strategies

• Describe the different types of employees suited for a company's international operations

• Address issues related to expatriate management, such as motivating international employees and ensuring successful assignment performance and repatriation


International Personnel Issues

• Hiring expatriates or locals is a function of the company’s involvement in the market

• Market presence, entry mode and commitment to market determine: Size of the sales team

Types of sales representatives


International Presence

• Companies using home-country middlemen Rely on sales force of the intermediary for international sales

• Companies using host-country brokers and agents Rely on sales force of the intermediary for international sales

• Companies using host-country manufacturers’ representatives and distributors Are engaged, at some level, in personal selling Hires local salespeople to call on distributors May have local sales office, or a wholly-owned subsidiary that

engages in the marketing function


Expatriates: Home-Country Nationals

• Preferred by companies whose products are at the forefront of technology: Preferred when selling relies on extensive training and highly

specialized information Preferred where there is a greater interdependence between

overseas unit and corporate headquarters


Expatriates: Home-Country Nationals, continued

• Disadvantages: High costs Cultural barriers Lack of local personal connections in the local

environment Difficulty finding employees willing to take on

international assignments


Expatriates: Third-Country Nationals• Employees working temporarily in the assignment

country who are NOT nationals of that country OR of country in which headquarters is located

• Speak numerous languages• Familiar with customs and business practices in

different environments• Have learned, through experience, to adapt optimally

for international assignments• Cost less than home-country nationals


Host-Country Nationals

• Local salespeople who work in the home country for an international corporation

• Understands the business environment and business practices in the company’s home country

• Well trained technically

• Willing to return to home country to work for the multinational firm


Long Distance International Selling

Selling via the Internet or mail is likely to become an important venue in approaching new customers overseas in the near future.

Costs of distance selling are lower, allowing for greater market coverage,but the selling infrastructure (mail, Internet accessibility) lags behind in developing countries.


Managing International Employees

Companies that attempt to transplant personnel policies proven successful in the home country will run against obstacles in different international environments.

• Issues related to culture come into play


Buyer-Seller Relationship

• Certain selling approaches work better than others Hard sell Eye-to-eye contact Business cards Negotiation Building relationships


Understanding Values

• National Character

• Organizational Culture

• Individual Personality

CONTENT: substantive aspects of the interaction

STYLE: rituals, format, mannerisms, and ground rules


National Character

• Personality traits shared at the national level Individualism Power Distance Uncertainty Avoidance Masculinity/Femininity


Low- and High-Context Cultures

Low Context cultures use formal, direct communication that is verbally expressed.

High Context cultures use extensive nonverbal information to convey the message: cues, gestures, and facial expressions.


Successfully Managing Expatriates

Success requires:

1) Effective selection / screening

2) Training and development strategies

3) Motivating for peak performance

4) Ensuring successful repatriation

50% of expatriate

assignments FAIL


Recruiting Expatriates: Ideal Expatriate

• Has high cultural sensitivity and awareness

• Has the ability to adapt behavior in cross-national settings

• Has high level of resiliency

• Has extensive international knowledge and willingness to gain it

• Has a strong desire to work overseas


Culture Shock and Motivation

• A pervasive feeling of anxiety resulting from one’s presence in an unfamiliar culture.

• Lessen shock by: Helping employees know what to expect:

- Physical Environment- Social Environment

Creating additional incentives:- Extrinsic factors: compensation, leave and family policies, and

career incentives


Compensation Incentives

• Cost of living adjustment

• Housing allowance

• Education allowance

• Home-leave allowance

• Moving allowance

• Repatriation allowance


Expatriate Obstacles

• Gravitating toward home-country expatriates

• Relying extensively on expatriate groups and forums (websites that unite expatriates in a region, newspapers, etc.)

• Isolation

Isolation Going Native


Repatriation Issues

• Vast company changes

• Loss of status

• Lack of community

• Reverse culture shock

AVOID by maintaining connection to company headquarters


Chapter Summary

• Addressed expatriate management strategies

• Described the different types of employees hired for firms’ international operations

• Addressed issues related to ensuring the success of international assignments

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