This paper deals with the process of foreign assignments within the scope of IHRM. It will give a broad overview of the phases seen from the angle of reducing expatriate failure rates. The expatriation process can be divided into the following stages: personnel recruitment and selection, contractual conditions, preparation and support, as well as repatriation. An interview with a MNC compares theory and practice and points out possible reasons for failure.
Table of Contents
1. Introduction
2. Personnel recruitment and selection
2.1. Personnel recruitment
2.2. Personnel selection
3. Contractual conditions of the employment abroad
3.1. Elements of a contract
3.2. Compensation
4. Preparation and support
4.1. Preparation
4.2. Support
5. Repatriation
5.1. Problems and influencing factors of the repatriation process
5.2. Reintegration measures – efficient re-entry planning
6. Practical Study – The process of foreign assignments illustrated by the example of a Japanese Company (JC)
6.1. Background Information
6.2. Expatriation program
7. Comparison of theory and the expatriation program of JC Germany
Objectives and Research Scope
This paper examines the multifaceted process of international assignments within the field of International Human Resource Management (IHRM). The central goal is to provide a comprehensive overview of the various stages of the expatriation lifecycle—recruitment, selection, contractual conditions, preparation, support, and repatriation—to identify strategies that effectively reduce expatriate failure rates and enhance assignment success.
- The strategic significance of international assignments for global firm competitiveness.
- Challenges in the recruitment, selection, and contractual management of expatriates.
- The critical role of pre-departure preparation and on-site support systems.
- The complexities of repatriation and the necessity of effective re-entry planning.
- A practical case study analysis comparing theoretical frameworks with the actual practices of a multinational Japanese company.
Excerpt from the Book
1. Introduction
Strategically designed international assignments can enhance the global competitiveness of firms by increasing coordination and control across units, transferring innovations across geographical boundaries, and developing future executives with global perspectives and local market responsiveness. To obtain these strategic results, firms are increasing the number of managers sent on international assignments as expatriates (Selmer, 1995).
Although companies spend a significant amount of money on the expatriates and select the best people for their assignments, success is far from guaranteed. Studies conducted on US based companies have shown that: on average, 20% of expatriates return before the scheduled end of their assignments (Ioannou, 1994). Up to 50% of expatriates who remain in their positions until the end of their assignments operate on a low level of effectiveness (Black, Mendenhall, 1990). The statistics indicate that less than 40% of expatriates succeed in their mission abroad. A company invests 3 to 4 times a manager’s salary paid in Germany when sending him abroad. With a probability of success below 40% it is clear that expatriate assignments are a financial risk. Therefore, it is of major importance to cover the general activities for the sojourn abroad beforehand (selection, contractual conditions and preparation), the support during the long-term assignment, as well as a dynamic reintegration planning, to avoid failures.
Summary of Chapters
1. Introduction: Outlines the strategic importance of international assignments while highlighting the high financial risks and failure rates associated with them, necessitating a structured approach to the expatriation process.
2. Personnel recruitment and selection: Explores internal and external recruitment models and emphasizes the need for detailed job specifications and robust selection instruments to minimize deployment risk.
3. Contractual conditions of the employment abroad: Discusses the complexities of creating international employment contracts and models of remuneration, such as the home-based pay approach, to ensure fairness and strategic alignment.
4. Preparation and support: Details the importance of pre-departure training—including linguistic and cross-cultural programs—and the necessity of ongoing on-site support to ensure adjustment and productivity.
5. Repatriation: Analyzes the challenges of re-entry and proposes comprehensive re-integration measures that span before, during, and after the assignment to retain valuable expertise.
6. Practical Study – The process of foreign assignments illustrated by the example of a Japanese Company (JC): Provides a case study of a specific multinational company to illustrate how theoretical IHRM concepts are applied in a real-world Japanese corporate context.
7. Comparison of theory and the expatriation program of JC Germany: Critically evaluates the case study findings against established academic literature to highlight practical strengths and potential areas for improvement in the company's expatriation strategy.
Keywords
International Human Resource Management, IHRM, Expatriation, International Assignments, Personnel Selection, Global Mobility, Repatriation, Reintegration, Cross-Cultural Training, Expatriate Failure, Compensation Models, Multinational Company, Career Development, Performance Management.
Frequently Asked Questions
What is the core focus of this study?
The study focuses on the end-to-end process of managing international assignments within the framework of IHRM, aiming to provide a holistic overview of how companies can manage these processes more effectively to ensure success.
What are the primary thematic areas explored?
The primary areas include the recruitment and selection of expatriates, contractual conditions, pre-departure preparation, on-site support mechanisms, and the crucial final stage of repatriation and reintegration.
What is the ultimate research objective?
The objective is to identify key factors in the expatriation lifecycle that contribute to success and to propose strategies that mitigate the high financial and operational risks associated with expatriate failure.
Which methodology is applied in the research?
The research combines a thorough review of existing academic literature with a practical case study of a multinational Japanese company to compare theoretical best practices with actual corporate application.
What topics are covered in the main body?
The main body covers the theoretical foundations of expatriation, detailed examination of recruitment, remuneration, and support strategies, and a critical analysis of a practical example of these processes in a real-world business setting.
Which key terms characterize this work?
Key terms include IHRM, expatriate adjustment, repatriation failure, cross-cultural training, and global mobility strategies.
How does the case study illustrate the challenge of selection?
The case study highlights that while the company prioritizes cultural open-mindedness, the exclusive use of interviews as a selection tool limits the ability to fully assess a candidate's suitability, as recommended by literature advocating for a multi-instrument approach including assessment centers.
What is the significance of the "home-based" pay approach in the practical study?
The practical study shows that the company uses the home-based pay approach to ensure that the expatriate is not financially disadvantaged, which helps in maintaining transparency and simplifying eventual reintegration into the parent company.
- Quote paper
- Cindy Zacker (Author), Frank Faller (Author), Katja Holderbach (Author), Corinna Plodeck (Author), Anja Sterzer (Author), 2003, IHRM - The Process of Foreign Assignments, Munich, GRIN Verlag, https://www.grin.com/document/25764
