Date post: | 18-Jan-2015 |
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Business |
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International Personal Selling and Personnel Management
Session 10c
Learning 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 languagesFamiliar with customs and business
practices in different environmentsHave learned, through experience, to adapt
optimally for international assignmentsCost 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 CharacterOrganizational CultureIndividual PersonalityCONTENT: 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 /
screening2) Training and development
strategies3) Motivating for peak
performance4) Ensuring successful
repatriation 50% of
expatriateassignments
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
Session 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