Page 240 - DMGT545_INTERNATIONAL_BUSINESS

Unit 12: Basics of International HRM

How to reduce expatriate failure rates? notes

Expatriate Selection

One way to reduce expatriate failure rates is by improving selection procedures to screen out
inappropriate candidates. In a review of the research on this issue, Mendenhall and Oddou state
that a major problem in many firms is that HRM managers tend to equate domestic performance
with overseas performance potential. Domestic performance and overseas performance potential
is not the same thing. An executive who performs well in a domestic setting may not be able to
adapt to managing in a different cultural setting. From their review of the research, Mendenhall
and Oddou identified four dimensions that seem to predict success in a foreign posting:
self-orientations, others- orientation, perceptual ability and cultural toughness.
1. Self-orientation: The attributes of this dimension strengthen the expatriate’s self-esteem,
self- confidence, and mental well-being. Expatriates with high self-esteem, self-confidence,
and mental well-being were more likely to succeed in foreign postings. Mendenhall and
Oddou concluded that such individuals were able to adapt their interests in food, sport,
and music; had interests outside of work that could be pursued (e.g., hobbies); and were
technically competent.
2. Others’ Orientation: The attributes of this dimension enhance the expatriate’s ability
to interact effectively with host-country nationals. The more effectively the expatriate
interacts with the host country nationals, the more likely he or she is to succeed. Two

factors, particularly, seem to be important here: relationship development and willingness
to communicate. Relationship development refers to the ability to develop long-lasting
friendships with host-country nationals. Willingness to communicate refers to the
expatriate’s willingness to use the host-country language. Although, language fluency
helps, an expatriate need not be fluent to show willingness to communicate. Making the
effort to use the language is more important. Such gestures tend to be rewarded with
greater cooperation by host-country nationals.
3. Perceptual ability: This is the ability to understand why people of other countries behave
the way they do; that is, the ability to empathize. This dimension seems critical for
managing host -country nationals. Expatriate managers who lack this ability tend to treat
foreign nationals as if they were home-country nationals. As a result, they may experience
significant management problems and considerable frustration. As an expatriate executive
from Hewlett-Packard observed, “It took me six months to accept the fact that my staff
meetings would start 30 minutes late, and that it would bother no one but me.” According
to Mendenhall and Oddou, well-adjusted expatriates tend to be non-judgmental and

non-evaluative in interpreting the behavior of the host country nationals and willing to be
flexible in their management style, adjusting it as cultural conditions warrant.
4. Cultural toughness: This dimension refers to the relationship between the country of
assignment and how well an expatriate adjusts to a particular posting. Some countries are
considered as tougher postings than others because their cultures are more unfamiliar and
uncomfortable. For example, many Americans regard Great Britain as a relatively easy
foreign posting, and for good reason the two cultures have much in common. But many
Americans find postings in non-Western cultures, such as India, Southeast Asia, and the
Middle East, to be much tougher. The reasons are many, including poor health care and
housing standards, inhospitable climate, lack of Western entertainment, and language
difficulties. Also, many cultures are extremely male-dominated and are considered as
particularly difficult postings for female managers.

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