
- •Global Human Resource Management at Coca-Cola
- •Introduction
- •The Strategic Role of International hrm
- •Staffing Policy
- •The Polycentric Approach
- •The Geocentric Approach
- •Summary
- •Table 18.2
- •The Expatriate Problem
- •Expatriate Failure Rates
- •Expatriate Selection
- •Training and Management Development
- •Training for Expatriate Managers
- •Cultural Training
- •Language Training
- •Management Development and Strategy
- •Guidelines for Performance Appraisal
- •International Labor Relations
- •The Concerns of Organized Labor
- •The Strategy of Organized Labor
- •Approaches to Labor Relations
- •Chapter Summary
- •Critical Discussion Questions
Language Training
English is the language of world business; it is quite possible to conduct business all over the world using only English. For example, at ABB Group, a Swiss electrical equipment giant, the company's top 13 managers hold frequent meetings in different countries. Because they share no common first language, they speak only English, a foreign tongue to all but one.31Despite the prevalence of English, however, an exclusive reliance on English diminishes an expatriate manager's ability to interact with host-country nationals. As noted earlier, a willingness to communicate in the language of the host country, even if the expatriate is far from fluent, can help build rapport with local employees and improve the manager's effectiveness. Despite this, J. C. Baker's study of 74 executives of US multinationals found that only 23 believed knowledge of foreign languages was necessary for conducting business abroad.32 Those firms that did offer foreign language training for expatriates believed it improved their employees' effectiveness and enabled them to relate more easily to a foreign culture, which fostered a better image of the firm in the host country.
Practical Training
Practical training is aimed at helping the expatriate manager and family ease themselves into day-to-day life in the host country. The critical need is for a support network of friends for the expatriate. Where an expatriate community exists, firms often devote considerable effort to ensuring the new expatriate family is quickly integrated into that group. The expatriate community can be a useful source of support and information and can be invaluable in helping the family adapt to a foreign culture.
Repatriation of Expatriates
A largely overlooked but critically important issue in the training and development of expatriate managers is to prepare them for reentry into their home country organization.33Repatriation should be seen as the final link in an integrated, circular process that connects good selection and cross-cultural training of expatriate managers with completion of their term abroad and reintegration into their national organization. However, instead of having employees come home to share their knowledge and encourage other high-performing managers to take the same international career track, expatriates too often face a different scenario.34
Often when they return home after a stint abroad--where they have typically been autonomous, well-compensated, and celebrated as a big fish in a little pond--they face an organization that doesn't know what they have done for the last few years, doesn't know how to use their new knowledge, and doesn't particularly care. In the worst cases, reentering employees have to scrounge for jobs, or firms will create standby positions that don't use the expatriate's skills and capabilities and fail to make the most of the business investment the firm has made in that individual.
Research illustrates the extent of this problem. According to one study of repatriated employees, 60 to 70 percent didn't know what their position would be when they returned home. Also, 60 percent said their organizations were vague about repatriation, about their new roles, and about their future career progression within the company, while 77 percent of those surveyed took jobs at a lower level in their home organization than in their international assignments.35 It is small wonder then that 15 percent of returning expatriates leave their firms within a year of arriving home, while 40 percent leave within three years.36
The key to solving this problem is good human resource planning. Just as the HRM function needs to develop good selection and training programs for its expatriates, it also needs to develop good programs for reintegrating expatriates back into work life within their home-country organization, and for utilizing the knowledge they acquired while abroad. For an example of the kind of program that might be used, see the accompanying Management Focus that looks at Monsanto's repatriation program.