Page 97 - DMGT548_GLOBAL_HRM

Global HRM

Notes Willingness to move: In a situation where an employee is a reluctant expatriate or accompanied
by reluctant family members, it is more likely that they may interpret negatively events and
situations encountered in the new environment. A study says that managers who are most ready
for international relocations are those whose spouses are also supportive of that move – a not
surprising finding. Other studies support the importance of a positive outlook.

Example: The reasons for lower British expatriate failure rates were that British managers
were more internationally mobile than US managers, and that perhaps British companies had
developed more effective expatriate policies.

Work environment-related factors: Adjustment to the work role itself was negatively associated
with ‘intent to stay’. Support for these factors as moderators has come from a study by Shaffer
et al. of expatriates working in ten US multinationals. Job autonomy is also a powerful factor
influencing expatriate turnover.
Another moderator is the perceived level of organisational support – from home as well as from
the host unit. Further, once the expatriate has mastered, or nearly completed, the assigned work,
other factors may surface and assume relative importance. For instance, if the work becomes
less demanding and no longer so time-consuming, the expatriate may have time to pay more
attention to negative cross-cultural experiences that the family is encountering. These negative
experiences can become distorted when combined with lack of challenge at work and thus sow
seeds for early recall, or under-performance.

5.4.2 Expatriate Failure

Expatriate failure is the premature return of an expatriate (that is, a return home before the
period of assignment is completed). In such a case, an expatriate failure represents a selection
error, often compounded by ineffective expatriate management policies. There is almost no
empirical foundation for the existence of high failure rates when measured as premature
re-entry. The expatriate failure is associated with the costs.
Direct costs include airfares and associated relocation expenses and salary and training. The
precise amount varies according to the level of the position concerned, country of destination,
exchange rates and whether the ‘failed’ manager is replaced by another expatriate. Many expatriate
positions involve contact with host government officials and key clients. Failure at this level
may result in loss of market share, difficulties with host-government officials and demands that
expatriates be replaced with HCNs.

Failure has an effect on the expatriate concerned who may lose self-esteem, self-confidence, and
prestige among peers. Future performance may be marked by decreased motivation, lack of
promotional opportunities or even increased productivity to compensate for the failure. Finally,
the expatriate’s family relationships may be threatened.

Notes Below are mentioned various reasons that had been identified for the U.S. expatriate
failure:

1. Transfer Anxieties: Foreign appointments tend to be poorly planned, creating a
sense of disorder with the endless list of tasks associated with taking a foreign
posting without proper planning, and fostering anxieties about the future with
respect to both the foreign assignment and eventual return to the home country.

Contd...

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