“The Effects of Repatriation on Managers Returning From
Foreign Assignments”
Owen Thomas Murray
Msc In International Business
Portobello College
2007
06111807
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appended.
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i)
Abstract
This study explains the effects of repatriates on managers returning from foreign assignments. The first
chapter provides the reader with an introduction to my chosen topic, the justification of undertaking the
topic and my research objectives. The second chapter explains the research methodology, my
questionnaire design and the problems I encountered when gathering information. The study goes on to
explain the expatriation/repatriation process in detail. It begins with the selection criteria needed for
expatriation and goes on to criticize it. Next, the factors needed by the expatriate to adjust to their new
environment are explained. I have then set out a training process an expatriate should go through
before the assignment.
Repatriation is then explained in detail for the reader describing present barriers to the process and
factors needed to be taken into consideration during the repatriate’s adjustment. Proactive strategies
are then suggested with a conclusion provided for the reader.
The next chapter is the main body of my research and is all my primary research explained through the
use of diagrams and tables with literature explaining every response I received. This section provides
four sections: Demographics of respondents, Length of expatriation and repatriation, the
expatriation/repatriation process and Independent Variables.
The final chapter consists of conclusions and recommendations. It suggests a recommended repatriation
program and a possible way of carrying out future research on this topic.
ii)
Table of Contents
Page
Declaration………………………………………………………………………………………………………………………i)
Abstract…………………………………………………………………………………………………………………………..ii)
Table of Contents……………………………………………………………………………………………………….iii)‐v)
CHAPTER 1………………………………………………………………………………………………………………………1
Introduction……………………………………………………………………………………………………….1
Justification of my chosen topic………………………………………………………………………….1
Research objectives…………………………………………………………………………………………….2
Problems with repatriation…………………………………………………………………………………2
Conclusion…………………………………………………………………………………………………………..3
CHAPTER 2‐Research Methodology………………………………………………………………………………….4
Introduction………………………………………………………………………………………………………..4
Research Setting………………………………………………………………………………………………….4
Methodology……………………………………………………………………………………………………….5
Secondary Research Data…………………………………………………………………………………….5
Primary Research Data………………………………………………………………………………………..6
Questionnaire Design………………………………………………………………………………………….6
Problems/Limitations with Research…………………………………………………………………..7
Sample Selection………………………………………………………………………………………………..7
Conclusion………………………………………………………………………………………………………….8
iii)
CHAPTER 3‐Literature Review………………………………………………………………………………………….9
Introduction………………………………………………………………………………………………………..9
Expatriate Selection……………………………………………………………………………………………10
Selection Criteria……………………………………………………………………………………………….11
Criticisms of the expatriation process…………………………………………………………..12/13
Adjustments to Expatriation……………………………………………………………………………..14
Expatriate Pre‐Departure Training…………………………………………………………………….15
Repatriation‐An Introduction……………………………………………………………………….16/17
Family Issues……………………………………………………………………………………….18
Barriers to Repatriation……………………………………………………………………………………19
Factors in Repatriation Adjustment………………………………………………………………….20
Individual Factors………………………………………………………………………………..20
Organizational Factors…………………………………………………………………………21
Re‐Entry Factors‐An introduction…………………………………………………………………….22
Repatriation Programs…………………………………………………………………………………….22
Repatriation‐The Process…………………………………………………………………………..23/24
Proactive Strategies………………………………………………………………………………………..25
Conclusion………………………………………………………………………………………………………25
CHAPTER 4‐Primary Research Findings………………………………………………………………………..26
Introduction……………………………………………………………………………………….…..………26
Demographic Of Respondents………………………………………………………….……26/27/28
Length of Expatriation and Repatriation…………………………………………….…29/30/31
Expatriation/Repatriation Process…………………. 32/33/34/35/36/37/38/39/40/41
Barriers to Re‐Entry………………………………………………………………………………………..42
Independent Variables……………………………………………………………………43/44/45/46
Successful Expatriation………………………………………………………………………..47/48/49
iv)
Independent Variables (continued)……………………………………………………………………….….50
Repatriation Adjustment…………………………………………………………………………51/52
Independent Variables (continued)………………………………………………… …53/54/55
Pearson Chi‐Square Test of Significance…………………………………………………..…..56
Conclusion……………………………………………………………………………………………………57
CHAPTER 5‐Conclusions And Recommendations………………………………………………………..58
Introduction…………………………………………………………………………………………………..58
Expatriation Selection……………………………………………………………………………….58/59
Pre‐Departure Training………………………………………………………………………………….60
Repatriation…………………………………………………………………………………………………..60
Post Repatriation Support………………………………………………………………….60
Repatriation Barriers…………………………………………………………………….60/61
Successful Repatriation………………………………………………………………………….………62
A recommended Repatriation Program……………………………………………….…………63
Future Research…………………………………………………………………………………….………63
Conclusion…………………………………………………………………………………………….………64
Bibliography………………………………………………………………………………………………………..65‐72
v)
Chapter 1
Introduction
Within this dissertation, the research objectives, the methodology, the research setting and the
problems and limitations of the research are explained. This paper aims to explain the effect of
repatriation on managers who have accepted international assignments abroad and why they have
accepted these posts. Repatriation is the home coming of an expatriate after they have completed an
assignment abroad. I will endeavour to give the reader an understanding of both repatriation and
expatriation. I will do this by providing information from primary and secondary research about the
rationale behind decisions made by management to place managers working for their organization in
positions abroad. The paper will also discuss what motivates individuals to take up these positions and if
theses motives are realized. I will be recommending what I consider is an effective repatriation
programme based on my primary research
Justification for my Chosen Topic
I chose this topic for several reasons. I believe repatriation study is important to organizations and their
employees because of the amount of executives leaving their jobs when undergoing the process. I have
always been interested in the repatriation and the expatriation process and have recently studied
expatriation during my masters program. The expatriation process depends on the factors of the job,
the organizational factors, the positional factors, the non‐work factors and most importantly the
individual factors. This is explained in more detail in Chapter 3.
A writer called Dowling (1986) has identified the process of repatriation which starts with preparation,
then physical relocation, then transition and finally readjustment. I also believe that repatriation is as
crucial as expatriation and that the repatriation process is heard about less in organisations compared
with expatriation. I have always had an interest in executives working abroad within a different culture
and the way they would handle the process of returning to their original post in a Multi National
Enterprise in Ireland.
1.
Research Objectives
The following are my research objectives:
1. To investigate the motivations and experiences of repatriates. – in other words, identify the
main reasons why Irish managers take international assignments and whether these motives are
realistic and realised.
2. To examine the process of re‐ integration. I will be looking in detail at this process to see if it is
working for the repatriate.
3. To identify the main difficulties encountered by the repatriate‐ This meaning the repatriates
difficulties in their career life and personal life.
4. To analyse training to facilitate re‐adjustment – Here, I will identify the particular company’s
support for managers that is in place or not in place
Problems with Repatriation
The problem of repatriation is twofold: readjustment and re‐establishment (Borg 1988).” Returning
home means ‘getting back to normal; and friends, relatives and colleagues are often not really
interested in the expatriates experiences” (Anne‐Wil Harzing and Joris Van Ruyssevelot 1995). A normal
repatriate complaint would contain the following ‘The line managers should cooperate more and not
keep the repatriates within the business area. There may be suitable jobs in other parts of the
corporation if the company is a large one’ (Anne‐Wil Harzing and Joris Van Ruyssevelot 1995). In most
cases, the repatriates must arrange everything by themselves and have to contact the line manager who
sent them abroad in the first place, or the personnel department in their particular Multi National
Company. It has also been said that the knowledge the repatriate has gained abroad may not be useful
in their home country (lowering the self esteem of the re‐assignee).
When a repatriate returns home they can run into problems regarding their work and their family life.
The company must support their repatriate as much as possible so that this does not occur. If the
repatriate has been away for a long time they might have missed out on major events in their home
country or company. The repatriate’s job and life might be completely different compared to what it
was before they left.
2.
Conclusion
This chapter has provided an introduction to my chosen topic and has outlined the structure and
possible problems with repatriation. The primary research has been collected from Irish companies but
the information contained in the study can be used by any organization. I believe that both the business
and their repatriated employee will benefit from a programme designed to eliminate barriers to
repatriation. I will endeavor to show the effects of repatriation on Managers returning from foreign
assignments and make my own recommendations to this effect. The following chapter will explain the
repatriation process in greater detail.
3.
Chapter 2 – Research Methodology
Introduction
This chapter will deal with the research results that I have gathered from relevant business sources. I will
outline the research methodology I used in my questionnaire and my research setting. There are always
certain limitations when undergoing a study of this kind and these will be outlined. I will critically
analyze secondary research that I have gathered from relevant sources who deal with the subject of
repatriation and expatriation. The design of my questionnaire will be explained and where I went for the
primary data and how I got it. I will give a profile of the respondents with how many questionnaires I sent
out and how many I received back fully completed. I will also explain what the different administration
techniques I used for the primary data, and finally I will describe the conclusion I have drawn from the
research.
Research Setting
With more and more organizations going global, many have personnel abroad on foreign assignments.
These personnel are very important to the organization as they could be the difference between the
business succeeding and failing. When the repatriate comes back they have a crucial knowledge of
overseas markets and customers and this knowledge can be of great use to the home organization. I will
examine the re adjustment of Irish managers both professionally and socially taking into account that the
social element is just as important as the professional side. I will be looking at all the different training
programs the repatriate goes through and the effect it has on them. After looking at these different training
methods I will make recommendations on what method is the best. All this research will be done about
Multi National Enterprises or companies that have an organization in Ireland and one or more subsidiaries
overseas including Merill Lynch and Piercom.
4.
Methodology
The Methodology I used in this dissertation includes both primary and secondary research. The aspects of
Primary research will be a structured questionnaire (see Appendix) which I have tried to distribute to as
many companies as I can, as I expected a small response rate of somewhere between 5 and 20%. The
questions range from basic questions around the profile of the role to their expectations prior to taking up
the position abroad. My academic research will include theories detailing the main themes such as what
motivates managers to take up international assignments, the barriers to re adjustment and the use of
training programs in the repatriation process.
For my qualitative research I propose to conduct interviews with repatriates who are now living in
Ireland. This I believe will give the reader a real insight into the experiences positive and negative of the
repatriate. When designing the questionnaire I aimed to gather consistent responses and to provide as
much information as possible. It is important that the person filling out my questionnaire understands
exactly what I was looking for and that it was filled out in full. The design needed to be short so that it
will not take too long to fill out. I planned on carrying out a pilot study to bring up any flaws or
inadequacies that may arise in the questionnaire which I did. In general I will use more closed type
questions which will provide more consistent responses. Open ended questions that I used provided a
more detailed response. This can be used when there is a wide range of responses possible. Other
information was gathered from other organizations, newspaper reports, magazines and internet sites.
Secondary Research Data
Secondary research was used and proved to be useful when reviewing the research topic. I collected
secondary data from many different sources to give an overall perspective about repatriation. Articles
from the University of Wales were used and proved to be a great information resource. When I began my
secondary research I found a website called www.expat.com. This website gave me an overall perspective
on why employees take on international assignments and provided information about how families and
managers deal with the whole process of expatriation and repatriation.
The internet was used extensively looking at multinational companies annual reports and repatriation
programs in place. Articles such as “Bringing them home again” by Andreason and Family issues in
repatriation by Larson were of great use when searching for information on the topic.
5.
It is obvious that there has been a lot of research done on the idea of repatriation which is evident on the
amount of information I found. The main secondary information was gathered from books, Ireland China
Association, The Department of Foreign affairs, the IDA and Cultural institutes and the internet.
Primary Research Data
I chose a quantitative method of collecting data in the form of a questionnaire for the purpose of primary
research. I distributed the questionnaire by handing it in personally to different companies and by e-mail.
The cost element of sending these e-mails was very low so I sent a lot of them to a range of multinational
companies around Ireland. I seemed to get a better response from the e-mail as the respondents found the
questionnaire easy to fill out and well time managed. I found the quantitative technique to be more
successful then qualitative interviews that I undertook. In these qualitative interviews I asked the same
questions as I had in the questionnaire asking the interviewee for a more detailed response to closed
questions.
Questionnaire Design
I designed the questionnaire in such a way as to make it easy for the respondent to fill out. The main
objective of this questionnaire was to identify the main factors regarding problems with the repatriation
process and to establish if there were any programs in place to deal with these employees. I divided it into
four sections.
The first deals with the demographic Variables which included questions like sex, age, time spent abroad
and the length of time they have been back in Ireland.
The second section deals with the expatriation/repatriation process and what the respondents felt they got
out of the time abroad and their return home. Here, they were also asked whether there was a program in
place for them when returning from their foreign assignment.
The third section deals with the possible Barriers to re-entry, and Independent variables are dealt with in
the fourth section which asked the respondent their view on the significance of their experience.
When designing the questionnaire I screened every question thoroughly in order to make it effective.
6.
Problems/Limitations with Research
Next I looked at the possible problems and limitations of the research. Getting in contact with large scale
companies proved to be quite difficult. Getting enough people to fill out the questionnaire also proved to
be quite difficult possibly because these Multi National Companies have employees who are very busy
and do not have time to fill out a questionnaire. The questions I put to the repatriate might be
misinterpreted as a different question and I might not get the proper answer I was looking for. The
repatriate who is answering the questionnaire might be back from their assignment a long time resulting
in an inaccurate response to questions asked. The idea of sending out a questionnaire means that there is
no benefit of personal interviews where I could pick up a lot more information from things like body
language, longer responses and overall more accurate data.
Sample Selection
I distributed the questionnaire to as many multinational companies in Ireland as was possible. Most of
these companies had their main headquarters in Dublin. I used the internet extensively to look for these
particular companies taking into account their relevance to my chosen topic. All together, I sent out 189
questionnaires and received 41 back fully completed. This was a better response then the 5% rate that I
originally expected. The responses came from 11 different individual companies although a lot of these
responses were through contacts that I had in multinationals. A letter was also distributed to the potential
respondents (see Appendix). This made the company aware that the objective of the thesis was to
examine the manager repatriation process and most importantly they were told that the information will
be kept confidential and only used for academic purposes. Contact details and the e-mail to reply to is
also provided.
7.
Conclusion
This chapter has dealt with the type of organizations I have dealt with during this study. The type of
methodology I have used is explained for both primary and secondary research. I designed a questionnaire
which is split into sections that I gave out to executives in different companies. I also explained some of
the problems I ran into when trying to gather this research. The next chapter contains all my findings from
most of my secondary research and is titled ‘Literature Review’
8.
Chapter 3 – Literature Review
Introduction
In business there has been much emphasis put on the concept of expatriation. This is due to a massive
increase in globalization in major multinational companies. The research on expatriation tends to focus on
how the individual deals with the whole process of working in a different country and environment. Only,
recently there has been extensive research undertaken concerning repatriation and the fact that lack of
programs and policies is resulting in barriers to successful repatriation.
It is a competitive necessity these days to have a workforce that is fluent in the ways of the world. It is not
surprising then that most of these multinationals send their professionals abroad, and plan to increase this
number over the coming years (Selmer 2001). If the expatriates are unable to adjust to life and work in
their particular country, they are likely to perform badly and return early (Ones and Viswesvaran, 1997).
International assignments are seen as being very important to Multinational companies as it allows their
employees to gain vital overseas experience. Research has shown that it is essential for MNCs to attract,
select, develop and retain employees who can live and work effectively outside of their own national
borders (Black, Gregerson and Mendenhall 1992a, Miller and Tung 1990).
My report will focus on why Irish managers accept these posts abroad. It will explain the factors involved
in the expatriation adjustment process including individual and positional factors. The study will describe
some of the barriers to the re-adjustment process and, most importantly will detail a program that I feel
would be beneficial for repatriates to undertake before returning. I hope at the end of this study to have
added value to the current literature on expatriate managers returning to Ireland.
9.
Expatriate Selection
The field of HR Management typically differentiates between four different types of how managers chose
and manage their staff in their foreign subsidiaries.
An Ethnocentric Multinational Enterprise tends to have few foreign subsidiaries and would make
decisions from its home country where its main headquarters is. Ethnocentric companies place
employees from the parent company into key positions within overseas subsidiaries worldwide.
In this type of company the key positions are usually held in the headquarters country and reflect
a colonialist approach to human resource management (Heller 1980). “This could put
considerable pressure on the MNE to have special selection, training, orientation, compensation
and re-entry policies and practices for expatriate managers” (Miller 1973)
A Polycentric MNE on the other hand would tend to have a large amount of offshore
manufacturing, marketing and distribution subsidiary operations. The polycentric manager is
designed to prepare local managers of host countries for crucial positions in foreign subsidiaries.
The Managers that do not reach the key positions in their home country usually end up in the key
positions in one of the foreign subsidiaries.
Regiocentric MNE’s tend to use a more vast pool of managerial personnel than polycentric and
ethnocentric MNE’s (Heller 1980). “They do this by engaging third country nationals of neither
headquarters nor – host country origin for managerial posts” (Ondrack 1985). These managers are
developed within a region for key appointments and continue to be employed within that region.
Geocentric MNEs chose their executives on the ability to do the foreign assignment rather than
basing it on their country of origin. “Their managerial training is aimed not at preparing them for
a particular foreign location, but for global assignments” (Heller 1980).Geocentricism is slowly
becoming the most popular strategy of expatriation for MNE’s.
10.
Selection Criteria
It is clear that some organizations have better expatriate selection processes than others. The deficiencies
in this selection process have been highlighted by Mendenhall and Macomber (1997). Their theory is that
the process is indeed an irrational one and that it is out of the hands of HR. Klaus (1995) has also pointed
out that when an expatriate is needed abroad urgently, the process is done quite quickly. It has been
shown that a workers technical competence, interpersonal skills and the importance of spouses and
children contribute to the success of the expatriate’s foreign assignment (Anderson 2005). These are
explained in more detail:
Technical Competence
Almost every organization regards the technical skills of an expatriate to be the most important criteria to
have when taking up an international assignment. Halcrow (1999) suggests that “the emphasis on
technical skills over ‘soft issues’ (such as job fit or personality) in the selection process may reflect the
discouraging reality that of all the constituencies involved in the selection process and that HR has the
least influence on the decision.” Halcrow has done research on this and results show that HR plays little
or no role in the selection process of expatriates. A problem organizations seem to have is that they
choose a candidate for the assignment based on the criteria they would employ in a domestic position.
Interpersonal Skills
Interpersonal Skills are considered to be one of the major factors when selecting an expatriate. It has been
suggested by Arthur and Bennett (1995) that differences in psychosocial factors can play a significant role
in distinguishing between successful and unsuccessful expatriates, who, having being selected on the
basis of job knowledge and technical ability, should all be capable and knowledgeable. These expatriate
interpersonal skills can be determined by psychological tests although there are not many organizations
that use this assessment. It has been suggested by Guptara (1986) that there are a few different
psychological tests that qualified staff can carry out on expatiate employees during the selection process.
11.
Partner and Children
Most organizations realise the expatriate spouse’s attitude during the assignment can be a major influence
on its success, and must be considered during the recruitment and selection process. Black and Stephens
(1989) indicate that ‘the more spouses that in favour of the international assignment, the higher was their
adjustment to their general environment and their interaction with host nationals’. Human Resource
professionals have reported that spouse resistance to expatriation is one of the most critical issues when it
comes to these overseas assignments.
Criticisms of the Selection Process
A study carried out by Jan Selmer (2001) found that selecting the right candidate for the foreign
assignment was not the issue but that it was trying to find anyone actually willing to take up the position.
To do this he took a large sample of western workers working in Hong Kong who responded to a mail
survey about their sociocultural and psychological adjustment. The results showed that “age had a
positive association with general, interaction and work adjustment of the expatriates as well as with
psychological adjustment” (Jan Selmer, 2001). Being married was a positive thing for the expatriate but
gender had no implication on the assignment.
It has been seen that the line manager almost pushes the expatriate abroad implying that there is no formal
selection process and recruitment procedures because the job is rarely advertised. This then implies that
either the manager or the personnel department have little say in who takes up the foreign assignment.
“Some typical complaints from the personnel department are:
1)
Recruitment should be more open and the job should be advertised
2)
The personnel manager should interview the candidate (or candidates) in order to test whether
he/she is suitable for the transfer abroad.” (Anne-wil Harzing and Joris Van Ruysseveldt 1995)
There are also issues regarding compensation, legal matters, schools for children and housing. The
appealing characteristics of expatriation are always glamorous at first, the generous salary, the large
house, allowances and sometimes even a servant in places like China and Japan.
12.
Managers Motives for going abroad:
Motive
Desire for new experience
96%
Better economic conditions on employment abroad
84%
Increased prospects of future promotion with employment abroad
as a background
82%
Employment abroad can indicate immediate promotion
70%
Employment abroad gives possibility for improvement within
his or her field
48%
Desire to escape from personal problems at home
21%
Dissatisfaction with prevailing home conditions
19%
Restricted career possibilities within the parent company
15%
Other
25%
Source: Borg, 1988 Table 9.3 Page 191 International Human Resource Management, Anne-wil Harzing
and Joris Van Ruysseveldt 1995
We can conclude from this study that the most important reason for taking up an international assignment
was a desire for a new experience. This can be compared with my primary research in Chapter 4 where
around a third of my respondents said that they took up the assignment for the experience. 70% of Borg’s
respondents said that promotion would be the reason they went, compared with my 30%. It seems like the
executive is the only person who knows why they are going on their international assignment. This is
where pre-departure training is of paramount importance. It gives the candidate the opportunity to make
their opinion known to senior management and to have answered any questions they might have. Pre-
Departure training is explained in more detail in the pages following.
13.
Adjustment to expatriation
“Psychological adjustment and sociocultural adjustment is a distinction that has been proposed in the
literature on international adjustment” (Ward and Kennedy,1992) This deals with the mood of the
expatriate, e.g. depression, anxiety, tension and fatigue. The adjustment from the home country does not
necessarily mean that the expatriate must change their values in any way just to conform to a new set of
cultural norms abroad (Furnham and Bochner 1986). It is therefore sufficient for the candidate to learn the
values of the host country and then to simply discard them when repatriation comes into play. Although
gaining experience and world knowledge should be put into practice when returning home wherever
possible.
A typical MNEs Procedure: This process begins with a line manager who has decided to appoint a
manager within their organisation to achieve a certain task. The idea behind this is that the appointed
manager will integrate into the wider organisation and bring back the experience gained for the benefit of
the Multinational Enterprise. By doing this the Multinational Enterprise exposes the manager to its core
values and culture. The manager in turn brings back the benefit of his experience to the MNE. Because of
Ireland’s dependence on foreign direct investment the process of expatriation plays a significant part in
how Irish companies run their organisation and manage their staff.
The Individual factors: The potential expatriate must have certain characteristics in order to be successful
on an international assignment. If they are going to a particular country it is a bonus for the expatriate to
be fluent in that language although this is not always the case as the executive might be going to a country
with English as the first language. They must be able to interact with people from different cultures
socially as well as professionally and they must rely on themselves to get work done at an efficient rate. It
might be easier to adjust to a country like France then it is in a country like China. For example: In France
customs like the hand shake are the same as in Ireland. In China these customs are very much different.
When a Chinese businessman greets anyone whether they are from China or another country they bow to
them and there is no physical contact. If this cultural difference is not taken into account by someone
from a country like France or Ireland it can result in the Chinese person feeling offended. This can then
lead to a loss of business, can damage the business’ reputation, and can steer potential clients in the
direction of the competition.
14.
Positional factors: This simply is the position of the expatriate in the organization whether they are a
manager or someone less senior.
Job factors: This is where the expatriate encounters problems regarding the role they play in the
organization compared with the role they played in their home country.
Expatriate Pre-Departure Training
When an employee is about to go on a foreign assignment, Pre-Departure Training is of paramount
importance. This can consist of information on bank accounts, housing, cultural differences compared
with Ireland, and even information on schooling for children. The executive and family must prepare to
enter a different environment and culture and should be ready and knowledgeable about what they might,
and will encounter. The more thorough the training, the better the chance is of the expatriate returning
when they are supposed to and not pre-maturely.
A training process by Tung (1981) was introduced to help expatriates before their departure and is
described below:
1) Area Studies Programs: This was designed to provide information for the expatriate with
information on a country’s socio-political history. It also gives the assignee information on the
geography of the country, the climate, the potential housing and the state of the economy. Each
information pack is different depending on the country they are going.
2) Language Training: The language of the country is taught to the candidate, but this can often
take months or even years (especially if the candidate is going to a country where there or many
different dialects).
3) Cultural Assimilator: This system is designed to share information to the employee about the
values of the particular country and about the different cultural institutions. This is hoped to
increase the candidates inter cultural skills and make them aware of how to assimilate the foreign
country’s culture, eg. handshakes and gestures.
15.
4) Sensitivity Training: this program focuses on flexibility so that the expatriate can become aware
of and eventually accept that ‘unfamiliar’ modes behavior and value systems can also be valued
ways of doing things in a different culture.
5) Field Experiences: This is where the employee is sent for a brief period to a country somewhat
similar to the one they will eventually go to. This is hoped to give the employee a feel of what to
expect in terms to the culture, climate, language, etc.
Without this training failure of expatriation can become a major problem for companies. Much research
on expatriation failure is written by Rosalie Tung. This work was a comprehensive study on expatriate
selection and overseas evaluation that included 300 U.S, 246 Western and 110 Japanese Multinational
companies. It was reported by Tung that U.S companies did not do as well as Multinationals in Japan and
Europe did (Tung(1981).
We can conclude from this section that Pre-departure Training can increase an expatriate’s chance of
success. Everything they learn from the organization before they leave can be put into practice abroad.
This helps the executive to get on with their objectives and will keep their family from avoiding a culture
shock and to get on with their lives in a happy, safe environment.
Repatriation – An Introduction
Repatriates have completed a global assignment and can help expand a MNE’s international business.
They can do this because they have first hand knowledge of cultural contexts, including specific markets
and customers. They understand how the company is seen in another country and are part of a social
network around the world which when put into practice, can advance the company’s business. The
knowledge that repatriates have is very valuable and therefore companies need to see them as being an
important human capital investment.
From my research I found that Borg (1988) carried out a study of why managers choose to return to their
original job in their home country. It was interesting to notice that the highest percentage was 56% them
returning for promotion. I took from this that the repatriate returned for the good of themselves rather than
what was best for their family. This would be apparent in some of the respondents to my questionnaire.
Some might feel promotion would benefit them and their family.
16.
Only 4% of the respondents said that they left pre-maturely because they felt uneasy about their
employment in their host country. This suggests that when the executives were at their posting most of
them felt secure in their jobs.
Why Managers choose to resume post in their home country,
Motive
There was a possibility of promotion within the home organisation
56%
Consideration for the education of the children
54%
Discomfort for the employee or his family caused by the conditions
Of the host country
36%
Considerations for relatives, friends etc.
35%
Need to keep abreast of one’s own profession
31%
Employment was found in another firm
21%
Failure with the appointment in the host country
17%
Uneasiness with the employment in the host country
4%
Other
7%
Source:Borg,1988, Table 9.4, Page 193 International Human Resource Management, Anne-wil Harzing
and Joris Van Ruysseveldt 1995
17.
Family Issues
Family issues are considered by most executives to be the most important factor in the
expatriation/repatriation process. The manager must take into account every hindrance and benefit their
family may or may not experience when abroad and when returning. Brett and Stroh (1995) found that if
the candidate’s spouse is willing to relocate it will result in influencing the executive but not the other
way around.
The repatriate can experience a pay cut compared with what they were getting in their host country which
can discourage the manager from their new status. The repatriate’s family (especially children) can have a
problem re-integrating themselves into school and their general surroundings. This can then lead to stress
on the part of the spouse and result in a poor work performance in the job.
When an expatriate comes home, usually the spouse will be looking for a job which is a hard and long
process. It is of utmost importance that the repatriate’s Multi National Company help out in this regard.
The company should set out a list of relevant associations or professional groups within the region, a list
of conferences in the beginning of the spouse’s repatriation process regarding their field of interest and a
list of internet sites within the spouse’s career field eg. (expat.repat.com)
According to the repatriation website one in four (or 25%) of expatriates will leave the company after
returning to their original post. This shows poor utilization of the company’s employees, and needs to be
looked at in more detail so that they can retain an employee which has cost the company money to send
on a foreign assignment. Managers of expatriates should have knowledge of the repatriate’s expectations
and needs and should adhere to this. The company must ensure a smooth transition for the manager.
According to Eaton Consulting group,“repatriation training should take place approximately three months
before returning from assignment, and/or not later than within the first 2-3 weeks upon return”.
Some of the main problems for repatriates can also be unclear career progression, the city in which they
were originally has drastically changed, their home no longer feels like home and they experience a
reverse culture shock and a sense of loss when returning to the original workplace.
We can conclude from this that family issues in the expatriation/repatriation process is of paramount
importance. It is a major factor in an executives life and needs to be dealt with professionally and
efficiently.
18.
Barriers to Repatriation
Andreason and Kinneer (2004) have outlined some of the possible barriers to re-entry a repatriate can
experience.
Personnel readjustment problems: ” The causes of personal re-entry readjustment problems are to a
certain extent inherent in the dynamics of having had to adjust to living in a foreign culture for a period of
time”. Families have reported a disappointment when returning home because of high expectations of
what they thought their home country was like. They can tend to only remember the positives associated
with their home country and leave out the negatives. This disappointment when returning home can often
be too much for the repatriate to handle.
When an expatriate is abroad they might hold a more senior, more important role but when returning
might not have that status. The expatriate can get used to luxuries they never had before, like a servant or
higher social status which they lose when returning. A financial shock can happen when the repatriate
realises that on the same money their life is less comfortable as it was.
Before a foreign assignee leaves for their assignment, they usually expect everything to stay as it was in
their home country, but as they find out when returning many things tend to change. While the expatriate
is abroad it is only natural that they and their families pick up habits and customs of their host culture, and
when returning miss out on what they have been used to. It has been found that children have a major
problem in re-adjusting to their home country. They find themselves out of touch with music, television
and general slang. This makes it very difficult for them to be accepted by their peers and they may feel
like outcasts from the group.
When returning home the repatriate often feels like they need to talk about their experience to their
colleagues in their home country. It has been shown by Andreason and Kinneer (2004) that the home
employees are not interested in hearing their stories and experiences. This then results in the repatriate
feeling that they do not fit in, as a direct result of their foreign assignment. All of this, results in the
repatriate glamorizing their assignment abroad and sometimes wanting to return to it. Life for the
employee now seems dull and un-interesting, and tend to associate themselves more with the host
country. They then become less committed to their job in the home country and eventually quit.
19.
