The increasing globalisation of the markets in our modern world creates more and more challenges for international companies. Through Joint Ventures, Strategic Alliances or overseas subsidiaries they penetrate and begin to compete in foreign markets.
As a result of the associated challenges, companies have understood that technical knowledge alone cannot count as appropriate prerequisites for global work-placement. Intercultural skills and international management qualities are increasingly sought after for management positions. As successful expatriations are good indicators of the availability and presence of these skills, they obtain all the more on importance.
Failed overseas assignments are a financial and operational risk for companies and therefore, most companies have understood the importance of preparing their expatriates and their families for the different cultures, the different living conditions as well as the different leading aspects in the new country.
This paper states the crucial components in preparing employees for overseas assignments and their importance for international businesses. It explains why companies send managers abroad, what kind of skills those expatriates have to establish in order to be successful and how culture influences the private as well as the working environment.
Table of Contents
1. Increasing Globalisation
2. Expatriation
3. Reasons for Overseas Assignments
4. When is the Overseas Assignment failed?
5. Culture
5.1. Culture in General
5.2. Cultural Barriers in Communication
5.3. The Cultural Aspect according to Hofstede
6. Training for Overseas Assignment
6.1. Skills of Efficient Expatriates
6.2. Intercultural Training
6.2.1. Informative Training
6.2.1.1. Culture-General Informative Training
6.2.1.2. Culture-Specific Informative Training
6.2.2. Interactive Training
6.2.2.1. Culture-General Interactive Training
6.2.2.2. Culture-Specific Interactive Training
6.2.3. Language Training
6.2.4. Problems with Intercultural Training
7. Importance of the Family
8. Integration in the Overseas Subsidiary
9. Reintegration
10. Limitation and Importance of Intercultural Training
Research Objectives and Thematic Scope
The primary objective of this seminar paper is to examine the essential components for effectively preparing expatriates for international assignments in an era of increasing global market competition. It explores why comprehensive preparation—encompassing technical, intercultural, and family-oriented aspects—is critical to mitigating the high risks of assignment failure.
- The impact of global market integration on the demand for internationally competent management.
- Defining the motives for overseas assignments and the risks associated with premature repatriation.
- Analyzing cultural barriers to communication and the practical application of Hofstede’s cultural dimensions.
- Evaluating the effectiveness of various intercultural and language training methods for expatriates.
- Assessing the crucial role of family support and post-assignment reintegration in long-term success.
Excerpt from the Book
6.2.2. Interactive Training
While informative training is rather suitable to provide passive knowledge about the different cultures, interactive training is argued to provide active learning by using experimental exercises and is therefore regarded as more effective (Kepir Sinangil et al. 2001:429). Behind this argument one finds the assumption that the most efficient way to gain new knowledge is by personal experience (Götz et al. 2000:35). Expatriates should get confronted with situations that are charged with emotions to develop “the emotional muscle” that is needed in intercultural interactions (Bhawuk et al. 2000:168).
Summary of Chapters
1. Increasing Globalisation: Analyzes how global market competition forces companies to utilize international assignments and requires managers to possess more than just technical expertise.
2. Expatriation: Defines the concept of expatriation and categorizes corporate philosophies into ethnocentric, polycentric, regiocentric, and geocentric orientations.
3. Reasons for Overseas Assignments: Identifies four primary drivers: compensation, control and leadership, career development, and the transfer of technical and administrative know-how.
4. When is the Overseas Assignment failed?: Examines the definition of failure primarily through early repatriation and discusses the secondary negative effects of poor job performance due to cultural maladaptation.
5. Culture: Provides a theoretical foundation for understanding cultural systems and analyzes how communication barriers and Hofstede’s dimensions influence cross-cultural interactions.
6. Training for Overseas Assignment: Discusses the necessity of preparing expatriates through technical, intercultural, and language training to ensure successful integration and performance.
7. Importance of the Family: Highlights that the adaptability of the spouse and family is a critical success factor, often cited as a leading reason for assignment failure.
8. Integration in the Overseas Subsidiary: Emphasizes the need for mentorship and ongoing connection with the parent company to maintain the expatriate's engagement and effectiveness.
9. Reintegration: Addresses the challenges faced by returning employees and the importance of planning the repatriation process to retain the knowledge gained during the assignment.
10. Limitation and Importance of Intercultural Training: Critically evaluates the current state of intercultural training research, noting its practical limitations while affirming its necessity in modern global business.
Key Terms
Expatriation, Globalisation, Intercultural Competence, Hofstede, Informative Training, Interactive Training, Cultural Barriers, Reintegration, Family Adaptation, Mentorship, Cross-cultural Management, Assignment Failure, Technical Competence, Strategic Competence, Stereotyping.
Frequently Asked Questions
What is the core focus of this paper?
The paper focuses on the critical necessity of preparing managers and their families for overseas assignments to ensure the success of international operations in a globalized economy.
What are the primary themes discussed?
The key themes include the strategic reasons for sending employees abroad, the cultural and communication challenges they face, the various training methodologies, the importance of family support, and the complexities of reintegration.
What is the central research question?
The research explores how and why specific training components for expatriates are crucial to preventing the failure of overseas assignments and maintaining the effectiveness of international managers.
Which research methods are employed?
The work utilizes a literature-based analysis, synthesizing secondary research from various academic sources in industrial psychology and international management to establish best practices.
What is covered in the main section of the paper?
The main section details the business motives for expatriation, the definition of cultural barriers, detailed breakdowns of intercultural and language training methods, and strategies for managing the family and reintegration.
Which keywords best characterize the work?
The work is characterized by terms like Expatriation, Intercultural Competence, Cultural Barriers, Reintegration, and Globalisation.
Why does the author emphasize the role of the family in expatriation?
The author emphasizes this because statistical data shows that a significant portion of assignment failures are directly linked to the lack of family integration and the inability of the spouse to adapt to the new environment.
How does the paper differentiate between informative and interactive training?
Informative training is presented as a method to provide passive knowledge about a target culture, whereas interactive training is viewed as an active learning method that uses personal experience and emotional engagement to build "emotional muscle" for intercultural situations.
- Quote paper
- Dipl.-Betriebswirtin Norika Gölz (Author), 2003, Training expatriates - crucial components in preparing for overseas assignments, Munich, GRIN Verlag, https://www.grin.com/document/20279
