IHRM Chapter 7 International Human Resource Management Managing

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IHRM Chapter 7 International Human Resource Management Managing people in a multinational context Re-entry

IHRM Chapter 7 International Human Resource Management Managing people in a multinational context Re-entry and career issues

Chapter Objectives We examine: • The process of re-entry or repatriation • Job-related issues

Chapter Objectives We examine: • The process of re-entry or repatriation • Job-related issues • Social factors, including family factors that affect reentry and work adjustment • Multinational responses to repatriate concerns • Staff availability and career issues • Return on investment (ROI) and knowledge transfer • Designing a repatriation program v

Repatriation Process. Expatriation process also includes repatriation. It includes the activity bringing the expatriate

Repatriation Process. Expatriation process also includes repatriation. It includes the activity bringing the expatriate back to the home country. Repatriation needs careful managing, attention to this aspect of international assignment (IA). Re-entry into the home-country present new challenges. The repatriation is coping with has been termed “reentry shock”. • • • Re-entry shock unaware of adjustment difficulties upon return or re-entry adjustment. • Multinational’s perspective, repatriation is frequently considered as the final stage in the expatriation process. v 3

Figure 8 -1 v Expatriation includes repatriation 4

Figure 8 -1 v Expatriation includes repatriation 4

Repatriation Process. On completion of IA, the multinational brings the expatriate back to the

Repatriation Process. On completion of IA, the multinational brings the expatriate back to the home country but not all IA end with transfer home. • Some expatriate may agree to become part of multinational’s international team of managers. • Repatriation may be seen to encompass 3 phases: 1. Before the global assignment, MNEs may act to assign home sponsors or mentors & hold them responsible for keeping the expatriate in touch with changing conditions in the home country. 2. During the assignment, ‘home leave’, work related info exchanges, sponsor communication & a systematic prereturn orientation process may facilitate realistic expectation & ease the return. • v 5

Repatriation Process. 3. Upon return a series of immediately practical & more long term

Repatriation Process. 3. Upon return a series of immediately practical & more long term activities combine during what is normally a very restricted time frame. Practical issues upon return relate to housing. Expatriates must be assigned a new work space and given a whole new orientation to the MNE. v 6

Figure 8 -2 v Repatriation activities and practices 7

Figure 8 -2 v Repatriation activities and practices 7

Reasons Repatriation Turnover. Employees with international experience are more likely to leave the company.

Reasons Repatriation Turnover. Employees with international experience are more likely to leave the company. Most expatriate s leaves to pursue other expatriate assignment that they view as beneficial to their career. Expatriates anticipates a lack of attractive position to return in the home country & seek out better opportunities outside their company. • • • v 8

Individual reaction to re-entry Re-entry process is a complex interaction of 2 factors: •

Individual reaction to re-entry Re-entry process is a complex interaction of 2 factors: • Job-related factors • Career anxiety • Work adjustment • Coping with new role demands • Loss of status & pay • • Social factors. • Family adjustment • Social networks • Effect on partner career. v 9

Figure 8 -3 v Factors influencing repatriate adjustment 10

Figure 8 -3 v Factors influencing repatriate adjustment 10

1. Job-related factors Factors center around future employment prospects as a consequence of the

1. Job-related factors Factors center around future employment prospects as a consequence of the IA, value being placed on the person’s international experience, coping with role demands & the loss of status & financial benefits upon re -entry. 1. Carrier anxiety • A primary factor in re-entry. • It is due to no post assignment guarantee of employment. • A fear that the period overseas has caused a loss of visibility & isolation. Fear towards the end of the IA. • Changes in the home workplace. Changes are usually accompanied by job shedding. • v 11

Job-related factors 2. Work adjustment • Important impact on a person’s intent to stay

Job-related factors 2. Work adjustment • Important impact on a person’s intent to stay with the organization. • Others may also lead to readjustment problems such as the employment relationship. An individual’s career expectations may be based on clear messages sent by top mgt. to the effect than an IA is a condition for career progression. • Re-entry position. Some promotion is a primary issues comment from repatriate reveals. Promotion is not guaranteed. • Devaluing the overseas experience. Career progression is important but to be promoted upon re-entry signifies that international experience is important & valued by the organization. v 12

Job-related factors 3. Coping with new role demands. • Along with career issues, a

Job-related factors 3. Coping with new role demands. • Along with career issues, a mismatch of expectations affects the repatriate’s perception of the role associated with network position. • Readjustment problems may occur because, although the repatriate is attempting to function back in the country his role conception remains influenced by that foreign assignment. • Mismatch of expectations. • Time in the foreign location; significant changes in behavior. v 13

Table 8 -1 v Career impacts of international assignments 14

Table 8 -1 v Career impacts of international assignments 14

Figure 8 -4 v The repatriate role 15

Figure 8 -4 v The repatriate role 15

Predictors for repatriation maladjustment 1. Length of time abroad 2. Unrealistic expectations of job

Predictors for repatriation maladjustment 1. Length of time abroad 2. Unrealistic expectations of job opportunities in the home company 3. Downward job mobility 4. Reduced work status 5. Negative perceptions of the help and support provided by employers during and after repatriation. v 16

Figure 8 -5 v The readjustment challenge 17

Figure 8 -5 v The readjustment challenge 17

Job-related factors 4. Loss of status & pay. • Usually, at least for PCNs,

Job-related factors 4. Loss of status & pay. • Usually, at least for PCNs, the IA is a form of promotion. • Upon return, the repatriate is expected to resume his position within the home company, with the loss of status & autonomy. • In effect, the repatriate is treated as just another company executive. v 18

2. Social factors The familiar surrounds of the home environment may ease the transition

2. Social factors The familiar surrounds of the home environment may ease the transition or at least the cultural adjustment will not be as demanding as that confronted in the foreign country. 1. Family adjustment • Where spouse, partners & children are involved, each family member is experiencing his or own readjustment problems. 2. Social network • Impression generated about changes in the home country may depends on how effectively the family has been able to keep up to date with events back home. • Re-establishing social networks can also be difficult, especially if the family has been repatriated to a different state or town in the home country. • v 19

Social factors 3. Effect on partner’s career. • Partners encounter difficulties in re-entering the

Social factors 3. Effect on partner’s career. • Partners encounter difficulties in re-entering the workplace, particularly if the partners has not been able to work outside the home prior to or during the foreign assignment. v 20

Multinational Responses Maximize benefits of the international assignment 1. Staff availability & career expectation

Multinational Responses Maximize benefits of the international assignment 1. Staff availability & career expectation 2. Return on investment 3. Knowledge transfer v 21

Staff availability & career expectation The way multinational handles repatriation has an impact on

Staff availability & career expectation The way multinational handles repatriation has an impact on staff availability for current & future needs. If the repatriate is promoted or given a position that can capitalize on international experience other members of multinational interpreted IA as a positive career move. If the multinational does not reward expatriate performance, tolerates a high turnover among repatriates or is seen to terminate a repatriate’s employment upon re-entry, it can be interpreted IA as a high risk. Boundaryless careers is shifts occurring in the employment relationship (job for life to job mobility) • • v 22

Boundaryless Careerist • Highly qualified mobile professionals, moving between organizations, transferring across boundaries to

Boundaryless Careerist • Highly qualified mobile professionals, moving between organizations, transferring across boundaries to develop career competencies and labor market value. • International assignments are boundaryless in that the person is placed in another organization v 23

Protean • Sometimes used to reflect the idea of a self-directed, continuous learning &

Protean • Sometimes used to reflect the idea of a self-directed, continuous learning & career. • Self –employed, contract work • Commitment to organization). • Develop their own intercultural and managerial skills v career and profession (not 24

International Itinerants Professional managers who over their careers are employed for their ability by

International Itinerants Professional managers who over their careers are employed for their ability by at least 2 businesses organization that are not related to each other In at least 2 different countries instead of selecting in –house candidates that will have to be repatriated to MNE. Two disadvantages • • lack of firm knowledge • selecting and controlling v 25

Figure 8 -6 v Linking repatriation process to outcomes 26

Figure 8 -6 v Linking repatriation process to outcomes 26

Return on investment (ROI) Definition a cost-benefit analysis of financial and non-financial data, measured

Return on investment (ROI) Definition a cost-benefit analysis of financial and non-financial data, measured against the purpose of the assignment. Mc. Nulty and Tharenou U. S. MNEs spend one million dollars on each expatriate over the duration of a foreign assignment. Black and Gregersen v 27

Difficulties measuring MNE’s Repatriate ROI 1. 2. 3. 4. 5. Receiving feedback from the

Difficulties measuring MNE’s Repatriate ROI 1. 2. 3. 4. 5. Receiving feedback from the business unit concerned. Tracking international assignments in a systematic way No formal planning A lack of objective measures Too many decisions being made without realizing the costs relating to the international assignment. 6. Globalization is a ‘must’ for us (so the ROI almost doesn’t matter). v 28

Knowledge Transfer (KT) • Manager is the need for cross-fertilization of ideas & practices

Knowledge Transfer (KT) • Manager is the need for cross-fertilization of ideas & practices that assist in developing & maintaining competitive advantage. • To ensure international assignments are two way process • Transferring knowledge and competence back to the organization v 29

Repatriate knowledge categories 1. Market specific knowledge. (Local system, language & custom) 2. Personal

Repatriate knowledge categories 1. Market specific knowledge. (Local system, language & custom) 2. Personal skills (inter-cultural knowledge, selfconfidence, flexibility, tolerance. 3. Job-related management skills ( communication, project mgt. , problem solving) 4. Network knowledge (meeting diverse peopleclient, suppliers & etc. ) 5. General management capacity (job description, job responsibilities & etc. ) v 30

Designing a repatriation program • The potential for mismatch of expectations regarding the future

Designing a repatriation program • The potential for mismatch of expectations regarding the future may be addressed as part of pre-re-entry training before return & discussed during re-entry counseling sessions between the receiving organization in the home country & repatriate workforce. • Several topics should be covered in the repatriation program as below table. v 31

Table 8 -2 v Topics covered by a repatriation program 32

Table 8 -2 v Topics covered by a repatriation program 32

Repatriate Mentor Duties • Some MNEs assign the expatriate a mentor. Usually senior position

Repatriate Mentor Duties • Some MNEs assign the expatriate a mentor. Usually senior position than the expatriate from the sending work unit & knows the expatriate personally. • Mentoring duties includes: 1. Maintaining contact with the expatriate throughout the assignment 2. Ensuring expatriate are kept up to date with development in the home country. 3. Ensuring expatriate are retained in existing mgt. development programs. 4. Assisting expatriates process including helping them with a repatriation position. v 33

Proactive Repatriation Strategies • • Managing expectations Career planning Written repatriate agreements Mentoring programs

Proactive Repatriation Strategies • • Managing expectations Career planning Written repatriate agreements Mentoring programs Extended home visits Reorientation programs Personalized reorientation to deal with the emotionally charged issues of social readjustment • Personalized financial and tax advice and support • Adjustment period • Visible and concrete expressions of the repatriate’s value to the firm v 34