ExpatriationPG国际人力资源与管理.ppt

Indirect costs
Damage to self esteem Career progression ‘brown out’ Recovery costs Company reputation Stakeholder relationship costs
Reasons for Expatriate
Psychic distance
measuring Psychic distance between parties Hallen and Wiederheim –Paul (1999) cited in Tayeb, M. (2003) International Management Pearson Education. Harlow
Globalising People through Foreign Assignments
Direct costs
Pre departure training Direct moving costs Travel Accommodation Partner and children expenses Downtime costs during adjustment phase
A
B
Psychic distance Z
Psychic distance Y
Inter-firm distance X
Total distance between A and B
Psychic Distance
X is the distance which would exist between parties any two parties even if they shared the same cultural provenance Y is the psychic distance due to the failings of A’s cultural and linguistic perception of B’s position Z is the psychic distance due to the failings of B’s cultural and linguistic perception of A’s position
Expatriate Failure
Early return Underperformance Failure rates are between 10-40% and higher than 70% for Americans in developing countries (Black et al) High cost of failure
Expatriation
Val Finnigan
key ns for the company:
What are the objectives of the expatriation project (sometimes called the expatriation assignment?) The answer to the question is critical to the choice of expatriate. Are the objectives clear in the Solartron case?
Failure
American
Japanese
UK
Inability of spouse Inability to cope with Inability of
to adjust
more responsibility spouse to adjust
Inability to adjust
Difficulties with new Other family
Required skills
Cultural toughness Stress management Involved management Relationship building Business networking
Survival skills
environment
problems
Other family problems
Personal and
Concerns over
emotional problems re-entry
Personal, emotional Lack of technical
immaturity
skills
Inability to cope with Inability of spouse to larger responsibility adjust
Culture Distance
• 'Culture distance' is the degree of difference between the expatriate's culture and the host culture.
• Black et al. (1999)suggest that culture distance has its greatest impact on adjustment to non-work interactions, because at work, interactions may be ruled more by the corporate culture than by the host country's culture.
– Cost of expatriates – Lost business and reputation costs
Direct costs of failure
$200,000 - $1.2 million Per assignment
Source:US National Foreign Trade Council. Cited in: Black, J.S., Gregersen, H.B., Mendenhall, M.E and Stroh, L.K. (1999)