M U H A M M A D R I A Z K H A NM U H A M M A D R I A Z K H A N

M I R Z A Z A H E E R U L H A QM I R Z A Z A H E E R U L H A Q

F A R H A N K H A NF A R H A N K H A N

M U B A S H A RM U B A S H A R

Our TEAMOur TEAM

In This presentation……In This presentation……

Expatriate??Expatriate?? Advantages of ExpatriationAdvantages of Expatriation Disadvantages of ExpatriationDisadvantages of Expatriation Roles of ExpatriatesRoles of Expatriates Factors Involved ….Factors Involved …. Expatriate Selection ProcessExpatriate Selection Process Who Will Be The Selectors?Who Will Be The Selectors? Reasons For ExpatriationReasons For Expatriation Typology Of Expatriates’ Selection ProcessTypology Of Expatriates’ Selection Process Eight Steps Expatriates’ Selection ProcessEight Steps Expatriates’ Selection Process Factors Influencing Expatriate SelectionFactors Influencing Expatriate Selection

Literature ReviewLiterature Review

ExpatriateExpatriate AA person person

who is currently who is currently living and well living and well established in a established in a foreign country but foreign country but will be hired by will be hired by another foreign another foreign country is considered country is considered an expatriate an expatriate

AdvantagesAdvantages

Better Equipped with understanding of Better Equipped with understanding of Values, attitudes and priorities of the HQ.Values, attitudes and priorities of the HQ.(Phatak (Phatak et al.et al. , 2005) , 2005)

Familiar to the products & procedures of Familiar to the products & procedures of the MNC.the MNC.(Deresky, 2003)(Deresky, 2003)

Contributes to the establishment of MNC Contributes to the establishment of MNC objective & policies in foreign objective & policies in foreign Subsidiaries.Subsidiaries.(Dowling & Welch, 2004)(Dowling & Welch, 2004)

DisadvantagesDisadvantages Less opportunities for local managers, which can Less opportunities for local managers, which can

influence their work morale & motivationinfluence their work morale & motivation(Derresky, 2003)(Derresky, 2003)

Expatriates are unable to adapt quickly host Expatriates are unable to adapt quickly host country’s culture.country’s culture.(ibid)(ibid)

That result in the ineffectiveness of Expatriates if That result in the ineffectiveness of Expatriates if not dealt with.not dealt with.(Dowling & Welch, 2004)(Dowling & Welch, 2004)

Not aware of details regarding Local Labor Not aware of details regarding Local Labor Markets, Local Education Systems, Specific Markets, Local Education Systems, Specific Techniques & practices of Host Country, Often lack Techniques & practices of Host Country, Often lack proper language skills of host countryproper language skills of host country(Hutchings, 2002)(Hutchings, 2002)

Cost of sending Expatriates is highCost of sending Expatriates is high(Collings (Collings et al. , et al. , 2007)2007)

Roles of ExpatriatesRoles of Expatriates

Expatriate's home location

Foreign Location

Bears (Harzing,2001c)

Bumble bees(ibid)

Spiders (ibid)

Agent of direct controlDowling &Welch,2004

Agent Socialization(ibid)

Network Builder (ibid)

Boundary Spanner (ibid)

Language node (ibid)

Expatriate Selection ProcessExpatriate Selection Process

Factors Involved……Factors Involved……

MNC’s Need

Business line (Area of Business)

Strategic Goals

External Market Capturing

Match between Employee MNC’s Culture

(Harris & Brewster, 1999)

Who will be Selectors????Who will be Selectors????

Immediate Supervisor (proposing)Immediate Supervisor (proposing)

Group of Senior Manager (Evaluating) Group of Senior Manager (Evaluating) (From place where person works)(From place where person works)

Parent Company Personnel DepartmentParent Company Personnel Department (Evaluating) (Evaluating)

Top Management of HQ (Selecting)Top Management of HQ (Selecting)

(Harris & Brewster, 1999)

Reasons For ExpatriationReasons For Expatriation

No suitable HCNNo suitable HCN

Opportunity for Managerial DevelopmentOpportunity for Managerial Development

A mean to achieve Organizational DevelopmentA mean to achieve Organizational Development

Need for Knowledge TransferNeed for Knowledge Transfer

(Colling et al. ,2007 )

   Formal Informal

 Open

Clearly defined criteria Clearly defined

measures Training of Selectors Open Advertising

(Internal/External) Panel Discussion

Less defined criteria Less defined measures Limited Training for Selectors No Panel Discussion Open Advertising Recommendations

 Closed Clearly defined criteria Clearly defined

measures Training for Selectors Panel Discussion Nominations only

(Networking/Reputation

Selector’s individual preferences determine Criteria & Measures

No panel discussion Nominations only

(Networking/Reputation)

(Harris & Brewster, 1999)

Typology of Expatriate’s Selection Systems

Eight Step Expatriate Selection Eight Step Expatriate Selection ProcessProcess

I.I. Identification of potential expatriate pool of Identification of potential expatriate pool of CandidatesCandidates

II.II. IQ assessment of that pool of candidatesIQ assessment of that pool of candidates

III.III. Determination of Learning Styles of candidatesDetermination of Learning Styles of candidates

IV.IV. Determination of Thinking Style of candidatesDetermination of Thinking Style of candidates

V.V. Determination of Assignment Task & Its Determination of Assignment Task & Its EnvironmentsEnvironments

VI.VI. Assessment of Family characteristicsAssessment of Family characteristics

VII.VII. Development of Repatriation program prior to Development of Repatriation program prior to expatriationexpatriation

VIII.VIII. Selection of expatriate candidates & Assignment Selection of expatriate candidates & Assignment

IX.IX. (Harvey & Novicevic, 2001)(Harvey & Novicevic, 2001)

Factors Influencing Expatriate Factors Influencing Expatriate SelectionSelection

Selection

Decision

Cross-CultureSuitability Family

RequirementsTech

nica

l

Abi

lity

Country / Cultural

Requirement

Language

MN

C

Req

uire

men

ts

(Dowling & Welch, 2004)