International HRM

Basic IHRM/GM Terminology (definitions, terminology delimitations)

Expatriate’s definition in IHRM: Expatriates relocate to a foreign country, for a predefined limited period of time. They are sent abroad by their employers to get a job done or to gather international management experience.

International Assignment: These assignments occur when an organisation or company dispatches employees from the home country to a different country for work at overseas offices or companies.

International Assignee: An employee who is sent to a foreign country to complete a temporary assignment that often requires some specialised skillset.


-Profile of the Average Assignee

  1. Male

  2. Parent Country National: same nationality as the sending company

  3. 40 years old

  4. Married / Partnered

  5. Accompanied by partner

  6. Accompanied by children

  7. 3 years assignment, then relocates

  8. Employed prior to assignment

→ expected medium-term changes


-Assignment Failure

General definition: Any unsatisfactory outcome of sending an employee on an international assignment.

7 most relevant reasons for assignment failure

  1. (33%) Family related issues: The candidate's family experiences difficulties adjusting to the new location, impacting the overall success of the assignment.

  2. (18%) Poor candidate selection: The chosen candidate lacks the necessary skills or attributes for the assignment.

  3. (18%) Cannot adapt to host location: The candidate struggles with cultural, environmental, or social differences in the new location.

  4. (14%) Job expectations not met: The role or responsibilities differ from what the candidate anticipated, leading to dissatisfaction.

  5. (7%) Compensation-related dissatisfaction: The candidate feels that the financial package is insufficient or unfair.

  6. (5%) Quality of life: The candidate is unhappy with the living conditions or lifestyle in the host location.

  7. (4%) Security / Safety concerns: The candidate feels unsafe or threatened in the new environment.


-Expat Partners / Trailing Spouses

Definition: The spouse or significant other who accompanies an expatriate employee on an international assignment, often facing unique challenges related to career disruption, cultural adaptation, and personal identity.

Role and relevance in HRM: The role and relevance of expat partners or trailing spouses involve providing support to ensure the success of international assignments. This includes offering relocation assistance, career support, language training, job-finding fees and social integration resources to help the expat partner adapt and thrive.

The trailing male spouse: The trailing male spouse supports the female expatriate by managing household and family adaptation, highlighting changing gender roles. In HRM, this requires tailored support to address his career opportunities, social integration, and well-being, ensuring the assignment's success.


-Guest presentations

→ Dr. Steimle / Corinna Both (Bosch)

Business sector: Bosch

Family Steimle going abroad to China (Suzhou) for 3 years, Chinese language training for parents, English language training for the kids ⇒ positive experience

Corinna Both going abroad to China (Suzhou & Shanghai): growth mindset, but know your limits, take time to process what you just experienced (emotionally, physically)

→ Yoshiki Toyama 

Assignment 1 in USA: 6 months + 3 months (Sales Technical Support)

Assignment 2 in USA: 1 year 9 months (Team Member for Software Development)

Then: relocated to Germany because it was best for his career.

Now: Japanese engineer being a maths teacher and an instructor in Stuttgart

Family issues: 4 time zones, 4 currencies,...


-Repatriation

Definition: The activity of bringing the expatriate back to the parent country.

Relevance: Involves the process of reintegrating employees back into their home country after an international assignment, ensuring they transition smoothly

Potential problems and their reasons

1- Job related

-Career anxiety: career advancement + financial gain

-Work adjustment problems: 3-5 years away, changes in the home workplace, personnel changes, organisational changes

-”Out of sight, out of mind” - effect = loss of visibility at home (where career decisions are made)

-Kingpin syndrome: loss of status and pay → PCNs tend to perceive the foreign assignment as a kind of promotion, so repatriation reverses these effects.

2- Social factors

-Family adjustment problems (partner, children, other dependant family)

-Loss of social networks

Support measures

  • Information gathering / survey: ask former expatriates, questionnaire when the expatriates return, include spouse and children.

  • Treating repatriation as an integral part of the assignment cycle: managing expectations, pre-re-entry training, discussion of reverse culture shock phenomena

  • Installing mentoring relationships: guidance and concrete assistance

  • Developing career path systems: guarantee job if you can but don’t make promises you can’t keep

  • Providing practical repatriation assistance: no later than 6 months prior to repatriation, schooling, housing, tax assistance

  • Establishing a standard “welcome back”-procedure


Question 1: What do the classic abbreviations PCN, HCN and TCN stand for? Explain each of the terms with the help of an example?

PCN: Parent Country National: German company sends a German employee on an assignment.

HCN: Host Country National: German company has a subsidiary in Poland and staff the positions with Polish people.

TCN: Third Country National: German company sends a Spaniard to Poland.


Question 2: Characterise a Developmental Assignment. Explain the role of International Assignments in the context of Global Talent Development.

A developmental assignment is a strategic placement aimed at enhancing an employee's skills, knowledge, and leadership abilities through challenging and diverse experiences. International assignments play a crucial role in global talent development by providing exposure to different cultures and business practices, fostering cross-cultural competence, and preparing employees for global leadership roles. These assignments also help build a global mindset, adaptability, and a broader professional network.


Question 3: (12 points)


  1. Name and describe the phases of the Assignment Life Cycle. (4 points)

Selection of expatriates: Identifying potential candidates 

Pre-departure: Training, preparing for the move, and then family expatriates take off!

Assignment: First weeks, assignment itself, support must be given

Repatriation: Readjustment to the parent country and parent company, retention issue for the company (attract, recruit, retain).


  1. What is, in your opinion, the biggest challenge for international assignees and their family members in each of the ALC phases? Explain why you think the named challenge is so relevant?

Selection: Bouleverse les plans pour le futur de la famille lorsqu’ils envisagent le départ. What would it mean for us, for the family?

Pre-departure: Bureaucratic and legal problems, taxation, net income ??? Gathering info

During assignment: Culture shock! Meet the expectations (too high? conflict of expectations between headquarter & people on-site); Loneliness

Repatriation: Find a new apartment, reestablish network


  1. What is, in your opinion, the biggest challenge for expatriate management in each of the ALC phases?

Selection: Identify the right person. Is it the right person?

Pre-departure: Paperwork, realise what needs the family has

During assignment: Keeping contact, difficulty to observe if some things are going bad (wife unhappy, wife having an affair)

Repatriation: Retention!


Question 4: 

  1. In how far does the EPRG-concept developed by H.V. Perlmutter help to better understand the policies and practices of International Companies pertaining to staffing their international operations? Describe everyone of them.

Ethnocentric: Companies with an ethnocentric orientation rely primarily on their home country's nationals for key positions abroad.

Polycentric: Companies with a polycentric orientation hire host-country nationals to manage subsidiaries while key positions at the headquarters remain filled by home-country nationals.

Regiocentric: Companies with a regiocentric orientation focus on staffing and management practices within specific regions rather than individual countries.

Geocentric: Companies with a geocentric orientation adopt a global perspective, seeking the best talent for positions regardless of nationality.


  1. Below you see one of the slides from Mrs. Lasek’s and Mr. Perraudeau's guest presentation in our lecture. Which of the four staffing philosophies categorised by Perlmutter would many international companies with a comparable geographical distribution of business engagements abroad follow? Why?


Question 5: In her famous article “Oh bears, bumble-bees and spiders: the role of expatriates in controlling foreign subsidiaries” (2001) A.W. Harzing states that German companies show a preference for “bears”.

  1. What type of expatriate is Harzing referring to with the metaphor of a “bear”? Why does she use the “bear” as a metaphor in the context of controlling foreign subsidiaries?

Big man, scary, authority 

  1. Which one of the staffing approaches defined by Perlmutter’s EPRG-concept would you associate the “bear”-type of expatriate with and why?

Ethnocentricity


Question 6:

  1. Why should international companies consider to appoint a mentor to each of their expatriates?

Living link between expatriate and headquarters. Represents the expatriates’s interests

  1. Name three key functions / areas of responsibility of the mentor in a mentor-mentee-relationship with an expatriate.

Cultural Adjustment and Integration: The mentor helps the expatriate understand and adapt to the local culture, customs, and business practices, facilitating smoother integration into the new environment.

Professional Development and Guidance: The mentor provides career advice, shares knowledge about the organisation's operations and expectations, and helps the expatriate navigate their role and responsibilities effectively.

Emotional and Social Support: The mentor offers emotional support, helps the expatriate build a social network, and provides guidance on personal challenges, reducing feelings of isolation and stress.


  1. Describe the profile of the mentor you as an expatriate manager would be looking for in view of an upcoming assignment in Singapore.

As an expatriate manager preparing for an assignment in Singapore, I would look for a mentor with the following profile:

  1. Extensive Local Experience: The mentor should have significant professional and personal experience living and working in Singapore, with a deep understanding of local culture, business etiquette, and social norms.

  2. Industry Expertise: The mentor should have a strong background in our specific industry, understanding the market dynamics, key players, and regulatory environment in Singapore to provide relevant and practical guidance.

  3. Cross-Cultural Competence: The mentor should possess excellent cross-cultural communication skills and an ability to bridge cultural differences, ensuring effective interaction and understanding between the expatriate and local colleagues.

  4. Organisational Knowledge: The mentor should have a thorough understanding of our organisation’s structure, policies, and objectives, helping the expatriate navigate internal processes and align with corporate goals.

  5. Supportive and Approachable: The mentor should be empathetic, approachable, and willing to provide both professional advice and personal support, fostering a trusting and open mentor-mentee relationship.

  6. Strong Network: The mentor should have a well-established network in Singapore, including contacts within the industry, local community, and expatriate circles, to help the expatriate build valuable connections.