Chapter 7 - Week 7

•The role of training in supporting expatriate adjustment and on-assignment performance

•Components of effective pre-departure training programs such as
– cultural awareness
– preliminary visits
– language instructions
– assistance with practical day to day matters and security briefings
Cultural Awareness
The expatriate must adapt and not feel isolated from the host country. The CAP can be beneficial to
foster an appreciation of the host country’s culture so that expatriates can behave accordingly, or
develop coping patterns. Without an understanding of the host-country culture - the expatriate is likely
to face difficulty during the international assignment.
The components vary according to country of assignment:
– Duration
– purpose of transfer
– provide programs
Tung identified 5 categories of pre-departure training based on different learning processes:
Type of job, country of assignment and time, include cultural briefing and orientation, language, field
experiences: degree of interaction required in the host culture and similarity between the individuals’
native culture and new culture.
Based on degree of expected interaction and cultural similarity - it doesn’t say which training method
to use
– training should be more oriented to life-long learning than one-shot programs with an area-
specific focus
– more provision of language training
– emphasis on the level of communication competence, not just verbal but that the person
becomes more bicultural, bilingual - enables an easier transition between one culture and
another
– cross-cultural training assists in managing diversity
Preview should be realistic - facilitates effective performance
Mendenhall and Oddou extended Tungs model: training methods, levels of training, duration of the
training relative to degree of interaction and culture novelty
By saying that the expected level of interaction is low and the degree of similarity between individuals’
home culture and the host culture is high - the length could probably be less than a week to provide a
level of training.
Training methods - emphasize an information-giving approach: area or cultural briefings, lectures,
movies or books, use of interpreters, survival level, language training
if the person is working longer than 2-12 months - some interaction - training should be longer
1-4 weeks
affective approach: role playing, critical incidents, culture assimilator training, case studies, stress
reduction, moderate language
expected interaction is high - training should be longer than two months or longer - depending
on the fluency required for language training - up to a year -
immersion approach: assessment centre, field experiences, simulations, sensitivity training,
intercultural web-based workshop, extensive language training
⇒ insufficient time - which is often a given reason why MNE don’t provide training
preliminary visits
a well-planned visit for the candidate and spouse allows them to assess their suitability for and
interest in the assignment. Helps to introduce them in the business context in the host location and
helps to encourage them. This should not be a tourist experience but must be relevant for the
intended position. This can assist the initial adjustment process.
ORC says in its served 916 MNE that ¾ provide a pre-assignment trip to expatriates to become
familiar with the new location, secure housing, child education and other items that are necessary for
a successful transition. 49% offer a preliminary to expat and spouse, 20% for all family members and
6 % for expats only. 4-6 days with all actual depenses for hotel, transportation, meals.
Most firms utilize visits, to lose cost against premature recall and under performance risks. The
assignee is expected to make decisions towards schools, suitable housing. Combined with cultural
training it’s a useful component of a pre-departure program.
language skills
The role of English: lower awareness than cultural awareness training, there is a difference between
international English and that from spoken native speakers. India is an attractive location - to the large
local English speaking population from which to recruit employees. MNE often use language as a
reason for not considering in the selection process. Tung although says that these countries say
language is unimportant. This in contrast to Europe, Asia, South America who consider knowledge as
success.
Fixman: foreign language skills are part of cross cultural understanding
Pucnic says that the lack of language has strategic and operational implications as it limits the
multinationals ability to monitor competitors and process a lot of important information. f.ex. translation
services, external to the firm, cannot make strategic inferences and firm-specific interpretations of
language specific data. Fixman thinks also that for technology - international English the language is
The monolingual English speaker has less room to manoeuvre, his position forces him to be reactive
rather than proactive in the relationship.
Hall and Gudykunst: Also the degree of ethnocentrism is important, the lower the level of ethno - the
more training it provides in cultural awareness and language training. English language has markedly
increased. 84%firms provided English training, 44% to all family members, 30% to expatriates ad
partners, 10% only expatriates. Most common form of spousal assistance is language training.
Host-Country language skills and adjustment:
Baliga and Baker - improve access to information regarding the host country’s economy, government and
market. degree of fluency depends on the level and nature of the position that the expatriate hold in the foreign
operation. Learning the language can be important to adapt and perform, new social support structures outside
of work and the expatriate community. McuNulty says that learning the host country language was rated by
71% as an important adjustment activity. → task performance and cultural adjustment.
Knowledge of the corporate language
MNE tend to adopt common company language to facilitate reporting and other control mechanism.
English becomes the common language within these MNEs. It can also give them power to their
position, being fluent can be a gate-keeping role. Sometimes also the two languages will be needed
the host country and the corporate language.
Relocation assistance and training for trainers are also addressed.
practical assistance: poor HR support as lack of mobility expertise and poor attitude towards
international assignees among locally trained HR staff. The first weeks or months are important as
stressors are settling. Problematic for expatriates was not having a central area or person to go to.
Seeking help from departments was time consuming and inefficient. PA is before and during an
assignment, preparing VISA, shipping assignees goods, additional baggage by air, interim
accommodation in the home, moving allowances to help cover incidental expenses. furniture storage
in the home country, consultations with a tax adviser or relocation agent. On-going language training,
administrative support in filling tax and official administration forms, assistance in opening a bank
account, finding and negotiating a housing lease. To help how to socially integrate, only 12% show
them other expatriates 10% provide a membership to a sport/fitness club and 5% to a private social
club.
HR staff needs to act as liaison to the sending manager and the HR department in the foreign location
to ensure that they provide him practical assistance.
•The effectiveness of pre-departure training.
•The developmental aspect of international assignments.
•Trends in international training and development.
•The process of re-entry or repatriation.

•Job-related issues.

•Social factors, including family factors that affect re-entry and work adjustment.

•Multinational responses to repatriate concerns.

•Staff availability and career issues.

•Return on investment (ROI) and knowledge transfer. (did I put too much money, researching
this person, are my employees happier,
•Designing a repatriation program.

International Training (current work skills and behaviour) and Development (increase abilities in
relation to some future position or job - trained to get back to your home country)
Human Resource refers to the accumulated stock of knowledge, skills and abilities that the individuals
possess. Training and development is part of MNE to build human capital. An indication of the
importance are the increasing MNE’s which establish their own universities or schools (Motorola,
McDonalds, Oracle and Disney universities are good examples of in-house training canters. European
Japanese or Korean firms have similar arrangements (Lufthansa School of Business).
Expatriates = trainers of transfer of knowledge and competence between various units
● they are a major rationale use for international assignments
● they are expected to assist the MNE train a develop HCN’s
● ensure that systems and processes are adopted - will be engaged how these processes and
systems work - monitoring the effective performance of HCNs
● another reason for international assignments is management development - a move into
another area - gain a broader perspective - assists developing capable people, who form the
required pool of global operations
Therefore, pre-departure training is really important to prepare expatriates and their accompanying
family
The following figure shows the schematic representation international training and development
process.
The role of expatriate training:
-mainly in developing cultural awareness
-training and development = ensure the expatriates effectiveness and success abroad -
especially when the country is culturally tough - helps us build the people we need and
adjust them more rapidly - help people to cope with unexpected events in a new culture

Book: PR departure training is always concerned with developing cultural awareness. A critical step to
be considered expatriate’s effectiveness and success abroad, this helps to adjust more rapidly to the
new culture - cope with unexpected events.
According to Tung’s less US multinationals have this PR departure training, it is more common in
Japan and Europe. The reason is that top management didn’t believe that its necessary or effective -
so it got downgraded and was simply not offered.
MNEs tend to be more positive in the provision of training this might be through the growth in numbers
of providers of pre-departure training that multinationals can access.
We see different patterns emerging 74% provided cross-cultural training (CCT) with 43% to some
assignments and 31% to all assignments. 46% make it available based on the host location, 29%
based on the type of assignment, 25% based on criteria.

Availability of cross-cultural training in MNEs

Book: They offer less priority to the spouse and family for pre-departure training. But maybe now as
they give this topic more recognition they extend their pre-departure training programs including
spouse and family. → mentioned in the Brookfield and Mercer HR 2010 International Assignments
Survey. predepartrure training increases, 2/4 provide language training to the spouse, 55% provide
cross cultural training. ORC says 38% provide cross cultural training to all family members, 19% to
the expatriate and spouse and 9% only to the expatriate. Optional is still very high, which means that
expatriates receive very little training. Lack of synthesis made it difficult for managers to implement
CCT. Review shows how to enhance success for MNEs. Mercer reports that pharma, healthcare
(57%(and consumer firms are most generous in terms of pre assignment support while IT are the
least generous. 14%

GMAC - invest a lot of time - time is limited - time is money

for whom is that provided: employees - training for the multinationals is provided to the whole family -
expat - spouse - kids ¼ firms are willing to pay for training for the whole family
none - training to anybody because you have no training available
book: Brookfield says that 32 percent of companies now use media or web-based alternatives to face-
to-face cross cultural training (28% used it for portability)

Page 80 - section on training Full Report Brookfield - GRS

38% all assignments
45% yes for some
16% no

The criteria: On what basis - we offer it to all assignments - upon the assignees request
if we have money over - then we might have money over
17% extend training to some assignments - particular challenges are - home country origin (variability
of these training programs - interesting to know what’s offered)

Mandatory training:
75% optional

NACHSCHAUEN Global Relocation Trends 2012 Brookfield

The Mendenhall, Dunbar and Oddou cross-cultural training model (STUDY HARD)
Created in 1998 - training approaches - long term vs short term assignments
We do know we have encountered other
length of stay correlates with the length of training - the greater the level of rigor will be required
depends on the cultural distance - area briefing - China/how do you give someone a business class -
Japanese managers ¾ times a year - 1,5 week
Exchange of the business card - she threw them on the table instead of giving them with two hands
Firm can be assistant here
Best advice short term: reading a novel from an author to learn about another culture
3 years - affective approach - Assimilator training, stress reduction feeling (too stressed, too
overwhelmed, why you are stressed, how to trigger that - demands the responsibilities, highly as
probably your pay), modulate language, increasing the level of rigor - meet someone at the coffee
shop

EMERGING approach: developmental assignment- international team, part of the team - stay away
for the long term, the longer you stay away the more likely the firm is to have a future for you.
language training, sensitivity training, to the Chinese, Japanese culture. The longer you are in
Australia the more likely will you understand the Australian culture. whole idea to be to be a mate -
different idea behind - mateship system.

Perceived value of cross-cultural preparation of expatriates

BE careful to say why would they say no - they might not be able to identified, you should not believe
these numbers. - it’s not provided how the firms evaluate their training
Those who got cultural training, had greater job satisfaction than those with lesser training
2nd study was that the effectiveness of cross cultural training was somewhat weaker than expected
due to: limited data (firms don’t make them available), mixture of different training methods, large
diversity in cultures that expatriates face, interaction between individual differences between
expatriates and the work experience
The jobs which the expatriates will face can be very complex, a training which captures this reality is
pretty difficult

PAGE 83 - Global Relocation Trends 2015 Brookfield

Value of intercultural training- 32% great value, good value 51%, 17% neutral

Expatriation includes repatriation… yes it does! It needs careful managing, attention. As more and
more expatriates complete their assignments, firms were faced with organizing these returns in a
more planned pattern, at the same time easing then return home country and firm.

TRAINING AFTER THE ASSIGNMENT: going home or next international assignment

Re-entry after an experience of returning home can be traumatic for some people
Career management- before -during- after
Culture shock is a psychological phenomenon that may lead to feelings of fear, helplessness,
irritability, and disorientation, which is commonly experienced by new expatriates who may experience
a sense of loss regarding their old cultural environment as well as confusion, rejection, self-doubt, and
decreased self-esteem from working in a new and unfamiliar cultural setting.

short term but normally long term - unavoidable - loss where you re ate - different environment

The phrases of cultural adjustment

We have to train people to come back - help them to overcome issues, sense of shock - new
environment - downwards sloop - crisis mood - honeymoon is over - spouse is nagging - why did I do
this over assignment- why are always working so late - less time with family - lots of responsibility -
because you took that extra bit. This is where firms need to catch you up. Would you like desert -
push them on to have the good experience. what else do you know - language, happy where you are
living, relocate you. Work problems - VISA right not allow to work. Make that load of the smallest form.
They need to be active and aggressive in that crisis shock face. Level of motivation is going down,
which is bad. Phase 3 - going better. 6 months I was really bad now it will get better and I can do the
other 6 months as well. ¾ studies have indicated to fully adjust opt a new environment it takes you 36
months. 3 Years to adjust and your assignment is 3 years long. What’s the point of that? taking it
down to 25 months. Cultural distance - might take you 5 years. At least we know that training and
development takes a big part. Learning learning learning in order to learn more - unlearning before
you learn more you have to attempt to learn unmoor. Distance myself from all the books and
magazines.
Learning and Unlearning - removing oneself - apply this from this expat assignment - new things new
people how to best work with all these new teams- every single skim- what it means to work well with
people- you can threw out of the window - rid of ideas and learn new ones. because they don’t fit to
the new culture. Be a chameleon.

Career impacts of international assignments

were better of - did you go promoted faster- to get to the next level. Higher position- positive looking
number. 3 years - change up to change employers more often - automatically when I returned
because repatriating was not so good - mental preparation they didn’t have it - they were not mentally
ready. dissatisfied with the position they got when they come back. Dissatisfaction was so big that
turnover leaving the company was the best thing. 40%
40% not sure about the career link to international experience - fault of the MNE - responsibility to
train each individual from beginning to end - repatriation process – no wonder that they can’t see the
link between careers.
Page 50 Brookfield Relocation Survey 2015
49% are promoted faster
29% are able to find a new position within the company
19% change employers/ leave the company
19% achieve higher performance ratings
17% comprehension increases faster
27% no differences between international assignees and normal employees
Book: When asked the effectiveness of ways to reduce expatriate turnover - Brookfield:
Opportunity to use experience (35%), Position choices upon return (22%), Recognition (16%),
repatriation career support (13%), improved performance evaluation (9%)
It is important to make them clear that it is not always great and that it is a big challenge and to show
them what the challenges are if you go abroad.

Book: Main reason why expatriates consider career progression as a primary motive for accepting
international assignments, career advancement, we don’t know if the outcome is met.
International assignments achieve team building, develop global networks to various parts of the
global organizations, in Europe the use of TCN and HCN expatriate is used to widening the “corporate
talent pool”. Individuals can’t change personal characteristics totally but they can learn to be more
sensitive to the challenges of working in another country- more culturally aware. Managers
supervising international teams, will need to understand processes such as group dynamics, how
cultures affect group functioning.

Repatriate (returning expatriates) knowledge categories

1.Market specific knowledge
you can have that same position back - going to have the same salary as you did when you left but
you can’t guarantee that you get promoted. Whole management for that journey. They have this
special knowledge how to work in this special market. how does business work - slow? what is it?
Why would you let go someone like that - network knowledge? 6 degrees to separation (book to read)
2.Personal skills
3.Job-related management skills
4.Network knowledge
5.General management capacity

The readjustment challenge

You have a new boss - maybe open office, work hours changed, new prime minister - society in
general has changed. For example, Refugees in Germany - last year this year has changed. Even
family needs to adapt again. The firm has too much time invested in you that they can’t allow
themselves to let you go to another company.

Book: Re-entry and repatriation problems:

22% left the company during an assignment
28% left within a year of returning from an assignment
24% left between the first and second year of returning from an assignment
26% left after two years from an assignment
4% overall were result in failure
the issue was mainly: spouse dissatisfaction 18%, poor candidate choice 16%, poor job performance
13%, inability to adapt 12%, other family concerns 8%

Factors influencing repatriate adjustment

Book: individual reactions to re-entry
You can put the Re-entry in two major categories:
1. Job-related factors
Career anxiety: career advancement and financial gain are the two motivators for accepting
an international assignment 33% said that they were promoted faster, 28% believed that
expats obtained positions in the firm more easily, 28% said that expats changes employers
more often. So when the expatriate is coming back, there is some pressure in re-entry:
- No post-assignment guarantees of employment, only 12% knew which position they would
receive when coming back, almost 60% in American firm reported that they did not guarantee
a position at home upon successful completion of the overseas assignment. The majority of
German firms although guaranteed jobs upon return. Continental firms do this to attract the
overseas agreement. No wonder that there is a career anxiety before coming home.
- Another problem is the loss of visibility and isolation - “out of sight out of mind” - this fear can
start whenever in the assignment, (1) the amount of contact that the person has had with the
home organization (2) the seniority of the position (3) whether the expatriate knows in
advance what re-entry position they will take up when they return to their home-country
- Lack of information - that the firm has not planned adequately so if there is no post-
assignment job guarantee, the anxiety level may be understandable high.
- Changes in the home workplace, anxiety can be created by informal communication from
home-based colleagues about organizational changes. Possible that the MNE is in process of
restructuring, the aftermath of a merger and acquisition, sale of divisions or business units.
These changes are accompanied by job shedding. But also closure of a plant, that means
that the expatriate has to leave and is in an unplanned repatriation. Possibility of having to go
home earlier. All expatriates in Asia-Pacific study perceived career enhancement by
increasing their markedly for other employers.
Work adjustment: The employment relationship: this has an important impact on a person’s intent to
stay with the organization. An individual career expectation may be based on clear messages sent by
top management, for career progression. The fact is if you are abroad the promotion go to other
people who are in the company during that time and not to those who are working on a project
abroad. Get a promotion before the return afterwards you are forgotten. Some people want to gain
expertise, some want to get rather a promotion after their return.
Coping with new role demands: between the home and the host country the roles can be different
so the expatriates needs to readjust his behaviour and his role which he played during that time, so
this can make difficulties when he is coming back.
2. Social factors
the international experience can distance the repatriate and his family socially and physically. If the
expatriate position gave the person a higher profile, involving interaction with the local national social
and economic elite, the return might give him social disappointment, the financial loss of the
compensation premium, housing subsidy and related benefits may exacerbate these feelings.
Family adjustment:
Each family member must experience his or her own readjustment problems. If they expected that
they put the freeze button and come back and everything is different, they also have memorized home
as perfect and now when they come back they realize that home also have negative things. For
example, the home country may have appeared more expensive in terms, but now as the country has
a high inflation as they come back from repatriation, they begin to memorize the life they left behind in
the foreign location. Then how quickly they can find jobs (Spouse).
Social networks: Children also might have difficulties to readjust, being out of touch with current
sport and fashion.
Effect on partner’s career: If the partner hasn’t found a job outside the home or during the
assignment but now wants to find a job coming back - re-entry. Negative experiences during the job
search causing tensions in the relationship. Unemployment levels in the home country, personal
characteristics such as age and gender. A lot of spouses wanted to get home because it is so difficult
to make friends.

Responses by the MNE

Dunbar, Mendendall and Oddou concluded that especially US companies don’t realise that the
expatriates face challenges when coming back. Even if they know that they experience difficulties
they are not showing the same level of interest as while expatriation. However, since 2011 there is a
progress, 95% discuss about the topic, 23% talk about repatriation at least 6 months before return.
MNEs should try to make a process and to maximize the benefits of international assignments

People don’t really appreciate of what you did. The firm has to make you more valuable as you are.
Feel you welcomed. As you return the spouse needs a new job again…

5 dominant predictors the more maladjustment you could

1.Length of time abroad

2.Unrealistic expectations of job opportunities in the home company

3.Downward job mobility

4.Reduced work status

5.Negative perceptions of the help and support provided by employers during and after repatriation.
friends and family might give you, they might be very jealous. they are going to make to feel like that.
Repatriation activities and practices
The whole story needs to be well - help them to understand help them. Investment = going overseas

Book Page 191: There are two stages

1. they MNEs may act to assign home sponsors or mentors and hold them responsible for
keeping the expatriate in touch with changing conditions in the home country. We based
indices of relevant national, regional industrial or firm websites may be provided. Mercer says
that 22 % firms have a mentoring program - this could reduce culture shock upon return
2. It would be also good for the family and the to reconnect with employees’ family and friends
and catch up with changing business economic and political conditions. These activities might
be more intense during the week’s months before the employees are going back to his home
country. MNEs can be less effective in their use of expatriates by either being too vague and
unfocused about repatriates. Not to forget housing and schools for children for their return.
The repatriate must reconnect with the social network of the MNE and personal and career
dynamics may have to be adjusted in new and potentially unpredictable ways.
It is important to see the two ways of culture shock
Return on Investment – Book page 202: Expatriates are expensive (first world economies) where
MNEs try to localize positions through the employment of HCNs, but not all of them should be
localized. MNEs are also increasingly using local-plus compensation for PCNs or TCNs as a way to
reduce costs. As an alternative to they use short-term or non-standard assignment to replace the
traditional assignment. Cost assignment is the driver here along with staff immobility. Black and
Gregersen calculated that a US multinational spend around 1 million dollars on each expatriate over
the duration of an assignment. They argue if one of four repatriates exit the company after one year of
repatriation, it represents a substantial financial and human capital loss for the firm, especially in
skills, knowledge and experience that the individual gains are important to the firm in internal or
external labour markets. Getting an ROI is important but not easy to achieve.
Brookfield surveys have shown different wavering agreement how to define ROI, accomplishing the
assignment objectives at the expected cost. McNulty and Tharenou recognize a meaningful definition
should include a cost analysis of financial and non-financial data, measured against the purpose of
the assignment. Identifying direct costs is relatively easy as relocation expenses, compensation
package and other international assignee entitlements are accessible. The intangible, non-financial
costs are more problematical, for instance non-direct costs of expatriate failure or under-performance
and the opportunity cost of not using a HCN. Placing monetary value on the benefits of the
international assignment is also a challenge as intangibles e.g. knowledge and skills transfer,
management, development and relationship/network building are somehow invisible. It is difficult to
measure, intellectual, social and human capital gains. ROI analysis focuses on the international
assignment period, and can be an exercise to justify cost reduction measures rather than considering
gains for the organization. Firms of the Brookfield survey tracked assignment costs and only 25
percent of respondents in the 2011 survey compared estimated with actual costs – difficulties were
not being sure how to measure ROI, lack of importance of ROI, no time to measure. Further
employees will perform their own ROI calculations, based on perceived and actual costs and benefits.
These calculations will influence their willingness to accept and international assignment either with
their current firm. Corporate objectives with individual expectations is not an easy task and
compounds attempts to balance costs and benefits for both parties.

What does return on

investment (ROI) mean to you?
Exercise on the text we received:

Training and development. what did I get out of it - ROI - a lot of investment - direct and indirect
costs?

we don’t know how to assess is - time is a big issue - Yvonne is a Consultant 17 years dragged to 3 or
4 countries - work for a university in Singapore. Philosophy behind - what she says is that ROI is a
combination of a corporate and the individual level of ROI.

eROI - expatriates ROi - corporate and the individual ROI

financial and non-financial measures

e ROI = cROI + i ROI + (individual ROi of the children, spouse)

financial data and non-financial data are necessary - what are the highlights in the philosophy - the
four elements:

1. Family (trailing spouse issue - involuntary effected - you are a victim of your husband’s career
potential - you are a victim of their success = this a part of the ROI - if we know that this brings
unhappiness - FAMILY)

2. Psychological contract (non-financial which we can’t touch): long-term relationships in the

companies - before 15 years, Behaviour today is different - people want to get things done directly.
How are these linked, we can even expand

3. Compensation: general idea- spend so much money, spending spending spending - financial
measure, acquisition we could certainly see numbers, look at the costs.

4. Careers: they are changing, they becoming global - more people than ever are going over the
wider variety of career types - the two distinction which she mentions the CAE and the SIE.

Company Assignment Expatriates vs Self-Initiated Expatriates (do not work for a firm. Pack everything
and move to India to get the experiences - expatriates = leave their own country) with different
journeys, which means depending on you have to measure differently.

Difficulties measuring MNE’s Repatriate ROI

1.Receiving feedback from the business unit concerned
2.Tracking international assignments in a systematic way
3.No formal planning
4.A lack of objective measures
5.Too many decisions being made without realizing the costs relating to the international assignment.
6.Globalization is a ‘must’ for us (so the ROI almost doesn’t matter).
too many decisions - the firms globalizing there is just no time lets calculate ROI send people abroad -
how would you calculate your own ROI?

Initiatives to improve expatriate ROI (the company should be more selective)

1. Career-path planning to better utilize cross-border skills upon return
2. Better candidate assessment and selection
3. More effective communication of assignment objectives
4. Better assignment preparation
5. More communication and recognition during an assignment
6. Company sponsored mentoring program
7. Mandatory destination support service
8. Mandatory cross-cultural training
9. Development of company intranet for expatriates
10. Web-based cross-cultural training

MENTORING PROGRAMS - takes time, how can it be conducted if the person is

10000km away, how does one structure it. What if you have different mentors.
Professional, Personal, Networking.
Repatriate mentor duties
1.Maintaining contact with the expatriate throughout the assignment
2.Ensuring expatriates are kept up to date with developments in the home country
3.Ensuring expatriates are retained in existing management development programs (person keeps
you up to date what is going on in the home country) or they only need an ego boost
4.Mentors are responsible for assisting expatriates with the repatriation process, including helping
them with a repatriation position.

Training attending a work job- understanding people mentally, helping people to return home. how a
mentor might be influencing a well-being of that expatriate and their career or only need
Book 204: market specific knowledge, personal skills, job related management, network
knowledge general management capacity.
The Mentors usually in a more senior position than the expatriate, and from home and knows the
person personally. and provides him with information on a regular basis, so that the expat is not
forgotten when important decisions are made regarding positions and promotions. 40/50 females had
experienced mentoring relationships and believed that their management positions were partly due to
that relationship. the mentors provide contact and support from the home organization that facilitate
re-entry and reduced out of sight out of mind syndrome.
what happens when the mentor retires or leaves the company? who monitors the mentors
performance?
It helps having a mentor but it does not necessarily helps re-entry. it does not make a contribution to
the repatriate retention rate. There are strategies how to maximize the likelihood that the professional
financial and emotional issues faced by repatriates and their families will be dealt with. for instance do
the strategies include - managing expectations via pre departure briefings, career planning sessions,
written repatriate assignments, mentoring program for post assignment career, extended home visits
keep up with social family organizational changes, reorientation program to provide a briefing on
changes in strategy policies and organization, personalized reorientation by the MNe so the repatriate
and his /her family may deal with the emotionally issues of social readjustment schools, family
dynamics and lifestyle changes inherent in return. Personalized financial and tax advice as well as
access to interim financial benefits such as short term loans. Adjustment period upon return that may
not include a vacation or reduced workload. visible and concrete expressions of the repatriate’s value
to the firm, will be required to seal and reinforce this new, more globally relationship between mne &
repatriate! only 14% had a repatriate strategy program that was linked to career management &
retention. The biggest issue is the career planning for repatriates in EMEA its loss of technical
knowhow during the assignment - 66% offer at least help in networking and home leave visits.

Chapter 8
International Compensation - how much benefit should they get, doesn’t matter
where they go etc. the CEO is paid more than the subsidiary manager
People shy away from this topic - compensation is nice everybody wants to get
money

Global Compensation - develop and reinforce global corporate culture, primary source - linking
performance outcomes with associated costs and central corporate governance in an international
context.
•Examine the complexities that arise when firms move from compensation at the domestic level to
compensation in an international context.
•Detail the key components (average compensation package from an expat - what does that look like)
of an international compensation program.
•Outline the two main approaches (there is variation in these approaches-local plus approach due to a
cost issue) to international compensation and the advantages and disadvantages of each approach.
•Introduce a third emerging approach to international compensation: Local Plus. (6th ed.)
•Examine the special problem areas of taxation and benefit concerns. (security, health care …think
about your domestic life and compare it to another country - social security differs in every country, do
you receive one you receive both - these are one of the questions issues that the company would
outsource to the big 4)

Objectives of international compensation:

1. policy should be consistent with strategy structure business needs
2. policy must attract and retain staff, must be competitive must recgonize factors foreign service
tax eqalization reimbursement for reasonable cost
3. faciliate the transfer of international employees
4. consideration to equity / ease of
5. administration
-the international employee also wants that the company offers financial protection in terms of
benefits, social security and living costs in the foreign location
-employee expect a foreign assignment to offer opportunities for financial advancement through
income/savings
- cost like housing education of children home leave

Key components of international compensation for expatriates

- Base salary (compensation package)

Book: domestic context: amount of cash compensation bonuses and benefits
expatriates: allowances which are manly related to the base salary (foreign service premium,
cost-of-living allowance, housing allowance) in benefits, pension contributions)
→ major differences can occur in the employee’s package depending on whether the base salary is
linked to the home country or whether an international rate is paid
- Foreign service inducement
 Book: PCN often receive a salary premium as an inducement to accept a foreign assignment,
as well as a hardship premium to compensate for challenging locations. Definition of
hardship, eligibility for the premium, and amount and timing of payment must be addressed.
F.ex. where a host country’s work week may be longer than that of the home country, a
differential payment when the person is doing overtime. US firms often refer to the US
Department of State’s Hardship Post Differentials Guidelines to determine an appropriate
level of payment. Making international comparison of the cost of living is problematic. Foreign
service inducements are usually made in form of a percentage of salary. Usually 5-40 percent
of base pay

(Notes: giving you more money, going to the middle of Paris, to make you motivate to make
you well on the assignment) & hardship premium (premium not an inducement, to induce
gives more to motivate, for the hardship part of the assignment - financial incentive, cash
offered to an individual to accept than a less attractive destination)
US. Department of State (Reference Point, Hard Premium list - based on your basic salary
you can 20% 2nd 10% - negotiation class)
- Allowances
COLA (book: compensate for differences in expenditures between the home country& foreign
country. cost of transportation furniture, medical, automobile maintenance and domestic help.
Family size determines COLA payments - each child. ECA International, Mercer services of
organizations to determine it on a global basis. For example allow an American to live like an
American in Paris or that the person adapts to the assignment location by adjusting to the
local life style and international living costs.), include payments housing (employees should
maintain their home-country living standards - or receive an accommodation that is
equivalent. The amount is dependent on family size and job level. , home leave, education,
relocation, spouse assistance (little things you need to have like a refrigerator)
- Benefits
Book:) international benefits is more complicated than with dealing with compensation. ecpats
benefits include health care, pension plans/social security, life insurance, child allowance and profit
sharing stock option plans (pendion plans are very difficult mne has to deal with a lot of difficulties
 to keep expats in home country programs → if he doesnt receove a tax reduction
 whether expats should receiv home country or host country social security benefits
most of them stay under their home country benefit plan exception of medical benefits
mne also have vacations and special leave, provides airfares for their families to return home, rest
and rehabilation leave is
mne also have vacations and special leave, provides airfares for their families to return home, rest
and rehabilation leave is also available especially if this is below standards in that country. in case of
death and illness are these fares of course also available.
book adding
Approaches to international compensation of expatriates - 2 main approaches the going rate
approach and the balance sheet approach

Going Rate Approach Book: base salary US linked to the salary structure in the host country as f.ex. a
japanse bank operating in new york would need to decidewhether its reference point would be us
salaries, japanese competitors in new york or all foreign banks in new york. with the GRA if the
location is in a low pay country the mne usually supllements base pay with additional benefits and
payments
(what someone would earn in the host market - number that’s been calculated based on what we
know you should be paid x amount as base salary)

• Based on local market rates

• Relies on survey comparisons among:
- Local nationals (HCNs)
- Expatriates of same nationality
- Expatriates of all nationalities
• Compensation based on the selected survey comparison (we are looking at other Australian citizens
in Vietnam what they earn. you got all this data. much way better position what we are able to pay)
• Base pay and benefits may be supplemented by additional payments for low-pay countries (beispiel oben)

Advantages and disadvantages of the Going Rate Approach

Advantages
• Equality with local nationals
• Simplicity (easy for expats to understand)

• Identification with host country

• Equity amongst different nationalities

Disadvantages
• Variation between assignments for same employee (most common when we compare advanced
economy with one in a developing country)

• Variation between expatriates of same nationality in different countries (lead to rivalry for
assignments to locations that are financially attractive and little interest in locations considered
financially unattractive)

• Potential re-entry problems when the employee salary reverts to reverts to a home country level that
is below that of the host country. this is a problem as salaries are normally way below that of the usa
although europe and us has been narrowing.

Market Based Approach in comparison to the balance sheet

The Balance Sheet Approach (KLAUSUR) most

common system by MNC’s (to maintain home country - will help to
balance out) Basically the objective is to keep the expatriate whole, - maintaining
relativity to PCN colleagues and compensating for the costs of an international
assignment through:
• Basic objective is maintenance of home-country living standard plus financial inducement
• Home-country pay and benefits are the foundations of this approach
• Adjustments to home package to balance additional expenditure in host country
• Financial incentives (expatriate/hardship premium) added to make the package attractive
• Most common system in usage by multinational firms
book : This approach links the base salary for expatriates to the salary structure of the
relevant home country. F.Ex. US taking up an international position would have his or her
compensation package built upon the US base salary level rather than that applicable to the
host country. Key assumption is that foreign assignees should not suffer a material loss due
to their transfer.
The system is designed to equalize the purchasing power of employees at comparable
position levels living overseas and in the home country and to provide incentives to offset
qualitative differences between assignment locations.
Four Balance Sheet Approach categories
1.Goods and services – home-country outlays for items such as food, personal care, clothing,
household furnishings, recreation, transportation and medical care.
2.Housing – the major costs associated with housing in the host country. (def. major cost)
3.Income taxes – parent-country and host-country income taxes. (tax protection - most common and
tax equalization)
4.Reserve – contributions to savings, payments for benefits, pension contributions, investments,
education expenses, social security taxes, etc. (other inducements, as education - negotiate hard)
Expatriate compensation worksheet (how it would look like on paper) Book:
Australian expatriate is assigned to a hypothetical country called New Euphoria which has a
COLA of 150 relative to Australia, and an exchange rate of 1.5 relative to the Australian
dollar. In addition, foreign service premium, hardship allowance is paying for the location.
Housing is provided by the MNE and notional cost for this is recognized by a 7 per cent
deduction from the package, along with a notional cost deduction. The expat can see on the
spreadsheet what is offered in the package and how the package will be split between
Australian currency and New Euphoria currency.

COLA Cost of Living Allowance Index = very unique

put 14.000 off - but will get a living
The firm will take out the maximum tax deducted in your home country-so you don’t need to pay tax
for the host country.
Other variant - two countries need to pay tax - host country tax is lower than in the home country
depends on the marginal tax rates
Advantages and disadvantages of the Balance Sheet Approach
Equity between all foreign assignments and between expats of the same nationality.
Repatriation is facilitated as there is equity with the parent country as expatriate compensation
remains to the parent country. It is easy to communicate
Disadvantages: between expatriates of different nationalities and between PCN and HCN.
Problems arise when international staff are paid different amounts for performing the same
job in the same location, according to their home base salary. This can lead to difficulties
between expatriates and HCN. However also the expat can have feelings of resentment and
inequity. For instance the USA has the highest level of managerial compensation in the
world. However, a subsidiary that establishes a subsidiary in the USA, its expats may be
underpaid compared to local American employees. So it is suggested not always to use the
balance sheet approach. However if US expats going to another country they have to accept
the lower salaries paid in the firms home country. The balance sheet approach can have
disparities and may also act as a barrier to staff acceptance of international assignments. It
is an elegant and easy concept, become quite complex to administer. Complexities arise in
the areas of tightly integrated private and government fund transfers.

Two main approaches are flipped - advantages here are different to the other approach! ANDERS
HERUM
Australian home pay - you go to Vietnam - other person form Germany has a different pay roll than
you have because they are coming from another country

‘Local Plus’ approach (necessary approach - firms understand more - cost saving efforts)
The expatriate employee is paid according to (guideline of the host country but in addition to that there
are lots of incentives prevailing) salary levels, structure, & administrative guidelines of the host
country … Book: Local Plus Approach are paid according to the prevailing salary levels, structure, and
administration guidelines of the host location , plus provided expatriate types benefits - assistance with
transportatio, housing education
does not typically include tax equalization cola mobility premium hardship allowance
familiarization visits home leave cross cultural training or other predeparture programs
spouse assistance
driving force - international assignment cost
low cost alternative salary packages - one way to achieve this
many companies see an increase in this package as junior middle management are willing
to accept this package - as international experience which will enhance their future careers
long term assignment, permanent transfers, intra regional transfer (asia pacific), low to high
wage locations
local plus is a hybrid version of balance sheet (home based) and going rate (host based)
(optimum)
local plus not fixed - flexibility to tailor each plus component

Reason: 1. expats can identify a home country - undertaking multiple assignments, in this
case local approach this is not possible - identifying home
is more difficult
2. companies who recruit from locations where has no presence no payroll facilities will have
it very difficult to administer either home or host best approaches.

local pluswill solve this problem

by offering employee experience and skills
often used for Asia pacific - due to a large globalized workforce in Australia
they need to put expatriates in the most cost effective manner

if the expats dont have such ahigh salary package they live more like the locals lifestyle and
socio economic habits
can have an effect on job commitment and loyalty
local plus is ideally suited to expatriates willing to accept a reduced salary package in
ecchange to gain international experience / skills - marketability on the international market
will increase - push them to find better employment
expatriate-type benefits in recognition of foreign status

Does not typically include: EXCLUDE

COLA, mobility premiums, hardship allowances, familiarization visits, home leave, cross-cultural
training, other pre-departure or spouse assistance
you would probably not buy a car - wouldn’t go to Mongolia if you haven’t done a visit before

YOUTUBE - all in HR positions - they all have something to say - how they say about cost
savings

- advice - budget: should not go over that budget

- 92% were spending all on the allowances director
- 82% normal
- house based standard - don’t want go to deep - right level of collaboration
- most international organisations different levels of expatriates - anything above your costs
- communicate the budget to the assignee - stay within in the budget - below we allow to use
the budget what they want
- business needs - containing costs - anything above on the business needs
- increased globalisation of business, boarders to foreign investments - drivers for mobility cost
efficiency - talent - attract the business
- managing talent sights - do come in in different values - cost will always be crucial
- cash allowance on the top of the assignment - set the number and freeze is
- china - do they need the full package - not necessary
- are you moving your top talent, are you moving because an employee wants to move
- trending in the reduced transition period - start to see the changes

- general strategy - they know what they are doing and they got the goals, they want it to make
it work - high work packages - piece meal wise of existing approaches - that the course
structure is more flexible - it doesn’t exist one compensation system
8.6a: Compensation approaches & strategies for long-term international assignments
those are driven by those purposes by these assignments - combination about the
next seven policies
full international is put in place to provide to these employees to they believe have longer- they get
this package - they have the greatest potential - to be trained to become a global leader- they really
do believe in you . Based on a balance sheet the home based approach - support here there you got
it you got it….golf, they get it all

Compensation approaches & strategies for long-term international

assignments 8.6b
The expat life - but instead of the international policy- of getting the full version-
reduced version of that …. get the club member ship - you ned to get your own car
etc that’s the way how to save costs. you don’t need because you not so important to
them.

8.6c
Local Plus - based on the host country location - typical offered to managers -
willingness to go - I would be very much interested in overseas experience - we can
get you go a bit cheaper because we know that the person really wants to go-

8.6d Localisation Approach -slighty different ot the Local plus

One-way International: statistics are lacking, one day maybe firms can benefit form -
different type of pay - host pay acceptable there -one way relocation package- nice
about the repatriation issue - making sure that you keep to be in that firm

MNE approaches to international taxation (book-Deloittes

Brookfield Surveys --Homework)
Book: Taxation - not enjoyable neither expat or MNE - an assignment abroad for a US expat may
result being taxed in the country of assignment and in the US. dual tax + all other tax costs make some
US mutlinationals think twice about making use of expats. file with the IRS - this requirement mkre
strict than for oecd countries who declare their total income to their hometown taxation authority.
MNE usually use Tax equalization (firms withhold an amount equal to the home country tax obligation
of the expatriate and pay all taxes in the host country) or protection (employee pays the amount he
would pay for compensation. 1.
2. laissez-faire - employees are on their own - to host country and home country taxationlaws and
practise Stuart added two other) neither of them are recommended and we shall focus on tax
equalization and tax protection - common approaches

tax equal more common taxation policy used by mne

for an expatriate - tax payments equal to the liability of a home country taxpayer with the same
income and family status are imposed on employees salary and bonus - additional premiums or
allowancea paud by the firm - tax free employee (netherland, germany, belgium ausztralia have the
highest tax)

•Tax equalization…MNE withholds tax obligation & then pays all taxes in HC

•Tax protection…Employee pays up to amount s/he would pay on compensation in

HC

•Ad hoc…each expatriate handled differently

•Laissez-faire…each is on their own

Maximum marginal federal tax rates

Country Max. marginal % rate

Australia 45.00

Belgium 50.00

Canada 29.00

Chile 40.00

Denmark 26.48

France 40.00

Germany 45.00

Italy 43.00

Japan 40.00

Korea 35.00

Country Max. marginal % rate

Mexico 28.00

Netherlands 52.00

New Zealand 39.00

Poland 40.00

Spain 27.13

Sweden 25.00

Switzerland 11.50 very different tax

protection if we compare
Netherlands to Switzerland

Turkey 35.00

United Kingdom 40.00

United States 35.00

When using balance sheet approach must constantly update compensation package with
new data on living costs – also currency and stock market crash this has dramatic impact on
prices cost of living and cost of servicing debt UBS uses Big Mac index
Some issues when considering benefits (responsibilities a firm
has - medical system - public vs private Country A to Country B how to these systems differ - how can
you private yourself)

1.Keep expatriates in home-country programs, particularly if the company does not

receive a tax deductions for it?
2.Enroll expatriates in host-country benefit programs and/or making up coverage
differences?
3.Does host-country legislation regarding termination affects benefit entitlement?
4.Do expatriates receive home-country or host-country social security benefits?
5.Should benefits be maintained on a home-country or host-country basis? Who is
responsible for the cost? Should other benefits offset any shortfall in coverage?
Should home-country benefit programs be exported to local nationals in foreign
countries?

TENTATIVE Conclusions:
Complexity, challenges and choices in global pay
Explore level 2 and level 3
Discussion Questions
1.What should be the main objectives for a multinational firm with regard to its compensation policies?
2.Describe the main differences in the Going Rate and Balance Sheet Approaches to international
compensation.
3.What are the key differences in salary compensation for PCNs and TCNs? Do these differences
matter?
4.What are the main points that MNEs must consider when deciding how to provide benefits?
5.Why is it important for MNEs to understand the compensation practices of other countries?
6.Explain how balancing the interests of global and local, occupational and functional perspectives
might play out in a compensation decision scenario.
EXAMS - Library Example Questions - 3 years of this class

Interview - person interviewed is the Rewards Manager at Unilever

System - everybody who is employed at Unilever I don’t like how this is structured, allows them to
become more integrated with the firm- this value adding component - fact that they are allowing inter.
& domestic about feedback of the compensation system! different people and so many different
cultures - they know that not everybody has so much happiness - feel more valuable by providing
more feedback. Everybody would see the changes - better understanding of the pay check - people
feel how to get rewards - why what! Train people to use and understand the system - wonder if the
system is adapt when the expats goes to a other country or when he comes back - there will be
changes. based on home and host based salary - major shift - balance sheet approach for example -
sterol system but are you as the employee to see the value in this change of structure. What’s
unilever doing to understand the process from country to country - there is a psychology check .
adding value through that feedback system.
156000 employees - single sign over 100 countries
15000 manager levels - up to VP
online version - value - large evolving organisation - listen to workforce
development plans - each country various inputs. wanted to know how people felt
what do you think about this package?
Benefit: MGT- system real-time what our workforce costs - payroll tax - true analysis
employees have got - extra value what they would get when they would go overseas
able to have a voice - feedback
promotions -
provide rewards that our employees appreciate what we get to people - employees in the various
countries
enhancements - core system - 1. budgeting system calculating system - annual salary is if there is a
annual salary increase in the country what the actual cost of that is

India: salary increase, joint venture - have their own long term incentives - shares are different
benchmarking - complex - market - systemizing that - heat map where to put effort in
how much would it costs if we put someone of that country in this country
high level sponsorship - be prepared to work hard - absolute vine from the top

Chapter 9 - Week 8 International Industrial Relations

dezentralisiert:
-gleichartige Aufgaben von mehreren Stellen/Abteilung bearbeitet werden.
-Entscheidungszentralisierung: Uebertragung von Entscheidungsbefugnissen auf mehreren
Stellen Abteilungen, die in der Betriebshierachie tiefer gestellt werden.
zentralisiert:
-gleichartige Aufgaben zusammengefasst werden und einer Stelle/Abteilung zugeorndet
werden zB zentraler Verkauf zentrale Beschaffung
-Entscheidungszentralisierung: Wichtige Entscheidungen von einer Person oder Gremium
fuer das Unternehmen werden

Book: International industrial relation: it is important to realize that it is difficult to compare industrial
relation systems and behaviour across national boundaries. it may change from one context to
another. USA understands negotiations between a local trade union and management. In Germany or
Sweden however were negotiations between an employers’ organization which represents the major
firms in a particular industry and the trade union covering employees in that industry. Here cross
national differences emerge to the objectives of the collective bargaining process and the
enforceability of collective agreements. European unions continue to view the collective bargaining
process as an ongoing class struggle between labour and capital; whereas in the USA union leaders
take a very pragmatic economic view of collective bargaining rather than ideological view. Next to that
no industrial relations system can be understood without an appreciation of its historical origin.
western countries unions are different because of their historical differences. craft union - skilled
occupational groupings, conglomerate unions represent members in more than one industry, general
unions which are open to all employees in the given country. Enterprise unions are evident in
industrialized nations. The lack of familiarity of multinational managers with local industrial and
politician conditions has sometimes needlessly worsened a conflict that a local firm would have been
likely to resolve.
In this chapter we:
•Discuss the key issues in international industrial relations and the policies and practices of
multinationals - will have to make a decision how to centralize or decentralize - how they want to
make them - are all related to the issues of centralization and decentralization. Each decision will
have consequences - 8 key issues are dynamic which also interact.

proactive (in order to prevent damage)

trade union <-------> MNC

reactive role (sometimes problems arise which cannot be see)

thinking about how this can have characteristics - trade union have to be proactive and reactive to
these characteristics

•Examine the potential constraints that trade unions may have on multinationals

•Outline key concerns for trade unions

•Discuss recent trends and issues in the global workforce context

Youtube - Walmart Robert Greenwald Documentary

98% - sourcing products from China
Walmart is deploying the labour force in America all the little businesses had to shut down
all about the mne fending off pessimist about mne going about things are they providing associates
health benefits - they are not making enough money to pay the Walmart health check - go to the
government they can subsidise your rest
- wages
- healthcare
- general working position
- safety conditions

spezielle matten die den rücken unterstützen wenn jemand 8 stunden arbeitet - help to cushion the
impact of the lower back, overtime, weather humid, extremetidities - everything is related to is the
MNe treating the employees in the right way? Associates, Employees in the company and the state
and federal government make them aware.

Key issues in international industrial relations

1. Industrial relations policies and practices of multinational firms (e.g., national differences)

no culture, political and economic differences relative to the institutions - Walmart has arrived in India
tries to scale - the way that they treat their employees how they are going to take these principles to
India, or to Canada. How centralized (headquarter determines how they do things in india) or
decentralized (we trust our heads in India we trust them how we should do things - allowing the mne
to make decisions) - to what extent will they give their subsidiaries - the way things have always been
done, extent to which a firm allows deor central. If India is strict with its employees, the US is aware of
that they might act accordingly so they might be a more decent way. 1. thing always government

book: MNEs normally delegate their Managements of industrial relations to the subsidiaries. However
policy of decentralization doesn’t keep corporate headquarters from exercising some coordination
over the industrial relations strategy.

2. The degree of inter-subsidiary production integration (e.g., reliance of product/service

components)

Book: High degree of integration - most important factor leading centralization when transnational
sourcing patterns have been developed, when one company relies on another subsidiary as a source
of components or as a user of its outputs. A coordinated industrial relations policy is one of the key
factors to have a successful global strategy. As for example Ford

Notes Class: reliance of a product, service component, transnational sourcing patterns, some firms
are heavily relied to manufacture a product that its sourced from a country - engage in a more
centralized way, headquarter allows itself to have power, quality, consistency, can be manufactured
and shipped on time. 14000 components - example a car, own other firms who are doing these
components, best interest to have a more centralised system how they compose things.

3. Nationality of ownership of the subsidiary (e.g., US versus UK) 4. International HRM

approach (e.g., ethno- versus geo-centric)

Book: Differences between European and US firms in terms of headquarters involvement in industrial
relations than British or European firms. US firms tend to place greater centralized control over labour
relations. US firms - formal management controls and a close reporting system to ensure that
planning targets are met. British firms prefer to have single-employer branding than an employer
association so as they like to assert managerial prerogative on matter of labour utilization. US owned
subsidiaries are more centralized in labour relations decision-making than British owned. British and
European are more similar to each other. The US has a more ethnocentric (we know best) managerial
style.

Notes in class: geocentric - you look at it how it could be handled in that country, there are always
problems none of them are good

5. MNE prior experience in industrial relations

Book: European firms tend to deal with industrial unions more at industry level (via employer
associations) than firm level. US firms, don’t play a key role in the industrial relations system and firm-
based industrial relations policies tend to be the norm.

Notes in class: Connection - Unions are established in countries, different firm level, particular
industries, conglomerates, what kind of unions exist, what problems are we dealing with, we have
experience with it in our home country, you are more like this so let’s engage in a more decentralised
way (give them more autonomy to use things in their way)

6. Subsidiary characteristics (e.g., acquisition, key strategic importance, source of investment

funds, poor performance, etc.

Book: More subsidiaries are more relevant to centralization of industrial relations. Subsidiaries that
are formed through acquisition of well-established indigenous firms tend to be given more autonomy
over industrial relations than are greenfield sites set up by a multinational firm.

poor performers, subsidiaries which are important to us, engage in HR issues, centralised side,
because if you want to poor performers, you need to have direct access to it, that means dealing with
it centrally

7. Characteristics of the home product market (e.g., size of home-country market)

if your home base increasingly decreasing, home market shrinking so much, and profit is much higher
than at home, you are much more inclined of dealing decentralised, that will require autonomy, each
region, home base is close to not existing

8. Management attitudes towards unions (e.g., union avoidance)

Attitude of managers towards union - change someone’s behaviour or someone’s attitude, attitude is
more difficult to change. managers do not want to hear this word. unions mean trouble, attitude
matters to determine how centralised or decentralised your principles are.

Union membership
Unions are a group of representatives, look after a industry or about employees in a company

Additional resource:
•http://www.oecd.org/about/
variety of issues of the OECD is looking at - we work with governments, environmental changes
•https://stats.oecd.org/Index.aspx?DataSetCode=UN_DEN → for more information rotes dokument trade
union members and union density
decade of numbers - 1999-2014 25.4 % - 15,5%
1. reasons: the way that Australia moves in business from manufacturing to services - manu is
more unionized that the service industry. that could an explanation for Australia
2. wages and salary owners that are trade union members, based on their OECD data
3. administrative and survey data
Why do they matter to us? if unions are ferly dominant, in what decentralised way they are

what perspectives are they? employees federal state governors, employers and unions - angle
negative or positive manner
Trade union limits on MNE strategic choices
1. Influence wage levels (i.e., to extent that cost structure may become uncompetitive) (e.g.,
http://money.cnn.com/2015/05/14/pf/minimum-wage-countries-australia/)
strategic choices, afford to go overseas - 40/60 countries - operate in an extremely cost saving
manner - trade unions are going to do their research - influencing wage levels - firms are liable to pay
that exploitation cannot occur to witness what can happening - the driving force
link - Australia low wage worker in Australia have a better than most Luxembourg is on the second
place why manufactures prefer to go
to Mexico
2. Constrain the ability of MNEs to vary employment levels at will (e.g., plant closing and lay-offs)
prior to mne - meaning south Australia manufacturing firms shutting down - unions can ensure if mne
think that they are unbreakable that they can close plans. If plans are closing it happens over a period
of time. compensated to do another job or the firm may offer make the break a little bit mire easy.
Career counselling, going tom lose
your job that’s probably half your year. easily find a new job - guess when 3000 workers lose their job
supply and demand 1. 2. data on career opportunities 3. how did the interviews go - generic especially
for those who have worked there all their life
3. Hinder or prevent global integration of operations of multinationals (i.e., imposing restrictions on
control/ownership à results in sub-optimization)
third proactive step - global integration of operations can strategically endure - cost structure not
worked out how they have worked the german medal workers union - crossed gm for reasons
corrosion ton place another manufacturing plan in Europe . wage levels in germany are higher than in
vietnam - forced to a different direction would have influenced their cost structure

- forcing them into country L

mittlere gepunktete Linie - they are aware - unions are afraid of MnE

Trade Union concerns about MNE

1.MNEs have formidable financial resources

2.MNEs have alternative sources of supply

3.MNEs can move production facilities to other countries (physics relocate accompany)

4.MNEs have a remote locus of authority (mne acts in a very opal non transitive transparent way - firm
makes a decision - if trade union says wrong decision - we didn’t make that decision we told them to
do we told that person to implement because of the scale and the people it’s very easy to point fingers
to make the unions - who is responsible for this issue)

5.MNEs have production facilities in many industries

6.MNEs have superior knowledge and expertise in industrial relations

resources to hire every consulting companies in their world to give them the best information about
countries that’s very intimidating for unions 10.000 to 50)

7.MNEs have the capacity to stage an ‘investment strike’

that’s the point what makes union scared
Trade Union responses to MNEs

1. International trade secretariats (ITSs)

limited success - different laws and c complexity multiplies

A. Confederation established to gain bargaining power for national unions in a particular
industry (e.g., metal, transport, chemicals)
B. Set up program to achieve bargaining power
•Research and information
•Calling company conferences
•Establishing company councils
•Companywide union-management discussions
•Coordinated bargaining
C. Met with limited success – why?
•Generally good wages and working conditions
•Strong resistance from multinational firm management
•Differing laws and customs in the industrial relations field
2.Lobbying for restrictive national legislation•

Lobbying own national governments to introduce legislation restrictive national legislation -

governments are not listening - maybe the best choice for tU is to go to International organisations
(OECD) government assistance take advantage of the groups that are available for you to bounce
ideas and to support your course

3.Regulation of multinationals by international organizations

•Encouraging regulation of multinationals by international organizations such as the Organization for
Economic Cooperation and Development (OECD), European Trade Union Confederation (ETUC),
International Labor Organization (ILO), the European Union (EU), etc.

Documentary and Discussion

1.Why is it important to understand the historical origins of national industrial relations
systems?
2.In what ways can trade unions constrain the strategic choices of multinationals?
3.Identify four characteristics of MNEs that give trade unions cause for concern.

Discussions about the videos:

Watch the video and watch it again – take notes and take examples which are from you
study them and draw that information when you write, get a better grade complete your
answers.
Industrial relations – compensation – MNEs IJV SVEs

CHAPTER 4
The Context of Cross-Border Alliances and SMEs
After you Have Read This Chapter, You Should:
•Understand the Difference between a Global Perspective on IHRM with External Partners and an
Internal Perspective; (Shift in HR practises or strategic thinking when we move from firm to being
something else like expanding growing organically 99% aligning strengths skills mergers and
acquisitions. SME add on to this chapter)
•Be Able to Identify and Explain Cross-border Alliances;

•Be Able to Identify and Explain the Significance of Equity-Based Alliances (M&As, IJVs); and

•Understand the Differences between IHRM practices within Globalising SMEs versus MNCs.
Globalisation  staffs  T&D  administrative
Macro – Micro level of analysis: Today we are going back to Chapter 4 / Medium level of an analysis-
how will these functions carried out.
Figure 4.1 - Equity and non-equity modes of foreign operation

Non-equity modes: investment vehicle in which profits and other responsibilities are
assigned to each party according to contract – separate own legal entity and liabilities.
Technology, strategic research and development in different functional areas as marketing
or production.
Equity modes: foreign direct invest purchase of shares of an enterprise in a country other
than its own. Greenfield or acquisitions, JV or mergers. Long term collaborative strategies,
support of appropriate HR practices.==> difficulties for HR research deficit explained now in
detail
temporary / non-equity like / franchising licensing management contracts
today we are looking to the equity modes! Joint ventures, subsidiaries, mergers and
acquisitions
Figure 4.2 - The formation processes of M&As and HR challenges

Company A – Company B = intra merger HR challenge – Daimler Chrysler merger happened so it

went Daimler & Chrysler – the challenge was within this new company how do I restructure my new
HR strategies- maybe same industries they have new companies –how do you come together and
combine things – how do my HR things look like.
Company A buying company B – absorbing a firm whatever existed previously need to get now in the
new company

Additional sources:
•“Top 10 Business Mergers and Acquisitions of all Time:
https://www.youtube.com/watch?v=gQSsPsbfkZI (10:50) (watch!)
•“The role of HR in acquisitions and mergers”: https://www.youtube.com/watch?v=vi-x0KEZAlE (6:35)

Notes: (is there change of course there is – change backfires that’s why a lot of MNEs fail – HR can
make a central role – A. administrative task compensation accounting writing training and
development just how HR department runs B. if you really want to be successful you have to work
more strategically needs to be CEO every decision the CEO makes. I wonder what HR thinks about
this, this are the right people we have done our analysis we know what they can make how much they
can expand – and now we can do this can extract the best informed decision for that future step – HR
has to say it is not a good idea to come with that Vietnamese joint venture because cultural clashes,
maybe the two cultures don’t come along YES of NO its not a good idea that’s what they mean by Key
change – HR can change the CEOs mind – it’s the idea not all HR departments are perfect and they
don’t know what they are doing, if HR is not doing well strategically / outsource take somebody from
external. External is likely – showing leadership, if you don’t know how to cope with change then ask
somebody from the outside –how do we communicate with two different cultures etc – talks about this
seeking existence – do you have people in the hierarchical manager and can they think
strategically??)

HR Key change agent for firm  CEO mindset?

 administration  train line people
 consultancy
Key strategic force (internal / external) + mentions it twice external
 figures!! (to supplement theory)
 retaining key “the best” people
 org. development area  leadership to cope with charge) alt. external
skills and knowledge of people in HR
  administrative
 psychology: persuade key strategic direction
•“HR’s role in M&A – Metrics and Culture”: https://www.youtube.com/watch?v=40CXVRn80hw (24:45)
Notes; suggested that having metrics is great if you have access to metrics – very polite in a sense
that the firm she is working with so she is able to retrieve to data – might have sounded generic. Don’t
be discouraged by the neutral answer – apply in a dynamic sense – people elements tech industry oil
and gas industry the answer to that one questions will always differ.
*quality metric vs not? How do you not if a metric is of quality / we are making the assumption that HR
is gold mine for data unless we do that we cant find the data we need. Make sure there is continuity.
That you can establish the trend. HR can only be that efficient if the data is good to give the CEO and
have something to present.
*assumptions are great (-)
*what why how to measure? ROI
*quality  replication needed
*elements you cannot measure
Book: HRM challenges faced in mergers and in acquisitions are similar
Crossborders M&A partial or full takeover or the merging of capital, assets and liabilities of existing
enterprises in a country – this has growth because of phenomena of globalization, it is done to rapid
entry into new markets. But there are also negative factors – risk diversification, technological
advantages, a response to government policies, political or economical conditions, effort to follow
clients.

Figure 4.3 - Mergers and acquisitions in US billions

Figures are very important, if your central point angle of analysis – you might not to have a look have
what the trend is when it was in 2000 or 2006. IT tells us mergers and acquisition fail / failure doesn’t
come from the strategic upper – they could come from internal or external elements.
ROLE OF THE TOP MANAGEMENT TEAM (TMT) IN POST-ACQUISITION SUCCESS:
A RESOURCE-BASED VIEW By TIMOTHY S. KIESSLING

Continues to be one of the most popular strategies for firms (Seth, Song & Petit, 2000)
(quickest way to grow – firms want to grow – he provided us with some very numbers)

•In 2003: over 27,000 deals acquisitons deals were formed = $1.4 trillion (Wall Street Journal, 2004)

•In 2005: it has doubled $2.9 trillion (Wall Street Journal, 2006)

•In 2006: $3.4 trillion (Wall Street Journal, 2007)

•Yet, past research suggests, it does not create shareholder value as we would have thought (Datta &
Puia, 1995: Porter, 1987; Ravenscraft & Scherer, 1987)

Why? If we had to answer it in one word – its leadership on all fronts, you put on specs on marketing,
Hr, finance and they all makes mistakes and that makes it normal that mistakes are happening.

Typical cross-border M&A problems

1.Within first year of merger, up to 20% of executives may be lost (duplication of functions, fighting
everybody tries to speak louder and everybody wants to have that position / different cultures, volunteering
turnover, firm has to come to an agreement, 20 people here 20 people there who is going to replace who, have to
let people grow, need to give compensation, all falls back into HR). Over a longer time frame, this tends to
increase even further.

2.Personnel issues are often neglected.

3.A high number of M&As fail or do not produce the intended results.
Additional resource: https://www.youtube.com/watch?v=q0NpTiPL06o

Impact of the human integration and

task acquisition on acquisition outcome

Book: One Big issue is Human Integration-difficult and takes time because they are processes
which are embedded in their own national, institutional and cultural settings.
Issues: A company loses 20% of its executives of the top management, personal issues are
neglected or not priority, high number of M&A fail, not produce intended long term results
 if we are able to integrate the task and integrate the
people really well - what about the in-betweens? If level of completion of task integration is
very high but level of completion of human integration is really low, then it’s not good. The
teacher doesn’t like the framework, but she is challenging it and saying that it actually
neglects to mention the dimension of time as an example (don’t write)
Figure 4.4 - HR activities in the phases of a cross-border M&A

 What are people related issues – how many people do we need, do we have the
budget, are these people talent, or how many people are we going to take from that
or this company.
 Planning Due Diligence: doing your due dili. By doing it from a different person, why
is my job position changed, how do I tell them about the new culture, how do I
communicate?
 Assessing people – who do we want to keep how do we determine which will stay
and which to keep – new dimensions – objectives what kind of
 Costs = save cost let people go who can we let go, how much would that cost
 Are there cultural issues – what does that mean for a cultural stand. Testing a new
part would that culture fit me.
 How do you plan ? Have them to learn a new language base level knowledge,
designing programs new strategy – different with different environment
 People will be against you – but you need to stand behind speaking measurements
again. You have to have the full story ready to persuade the CEO.
Study – German company those who involved early in the process were more successful
Additional resources: http://smallbusiness.chron.com/hr-issues-mergers-acquisitions-
65043.html

Figure 4.5 - Formation of an international equity joint venture

A JV can have two or more parent companies, 5050, or 51;49 – this has implications of the
control of the IJV. Keep legal identity – another legal identity is coming – partners with
different institutional, cultural and national backgrounds come together and must balance
their interests. Companies have different rules = can lead to critical dualitiesv

The two companies will still continue to exist, we are working with an intra IJV HR challenge.
Each of the firms which makes everything just different.
2 challenges: establishing and managing the JV

The main reasons for engaging in an IJV

1.To gain knowledge and to transfer that knowledge (excellent opportunity to learn from another
company in two years – learn a partners skills, specific areas, specific market or culture 2. Acquire
working experience – organizational learning processes)
2.Host government insistence

3.Increased economies of scale

4.To gain local knowledge

5.To obtain vital raw materials

6.To spread the risks (e.g. share financial risks)

7.To improve competitive advantage in the face of increasing global competition

8.Provide a cost effective and efficient response forced by the globalization of markets
IJV development stages and HR implications

Book: the different stages are important as they are all depending on each other and have an impact on activities
Recruitment, selection, training and development, performance management and compensation.

Notes Teacher: We are looking at slightly different wording – the formation – preface is the formation. Lets form
company C – we don’t have to planning previously – it is only for a while BUT with in an MNE it is different
because it is for life.
If you want out the pick out the differential IJV is temporary it is inexistence in addition to two other HR system
and the system is probably more so developed to generate new knowledge. It is only for 3 years we will learn
from it. Put together resources from the one company and that both companies can benefit from it. The other
company has technical know-how the other financial benefits. It is there to learn from it is short lift just needs to
function for a few years

Table 4.1 - SME definition

EEA are more than 16mio enterprises – less than 1 percent are SME they
have less experience with environmental contexts in different countries
Top 10 barriers to international markets by SMEs
1. Shortage of working capital to finance exports.
2. Identifying foreign business opportunities.
3. Limited information to locate/analyze markets. (don’t have the access to the bigger networks)
4. Inability to contact potential overseas customers. (size issue, financial issue, right people,
right amount of people.)
5. Obtaining reliable foreign representation.
6. Lack of managerial time to deal with internationalization.
7. Inadequate quantity of and/or untrained personnel for internationalization. (difficulty recruiting
people, resource Is intense you don’t have the right money)
8. Difficulty in managing competitor’s prices.
9. Lack of home government assistance/incentives.
10. Excessive transportation/insurance costs.

SME employer image and internationalization

Founder/owner have an impact on internationalization process – experimental market

knowledge - start process geographically and culturally close markets increasing experience
move on to distant markets. Managers should have international background and
experience. International experiences, skills, orientation, environmental perceptions and
demographic factors such as age, education and tenure had systematic effects on small
firms
Small firms have more difficulties to hire managers with an international background, less
qualified employees are more forced to wo work for SMEs as their second choice. Potenital
candidates do not apply, because they don’t have international working opportunities. Small
firms look for generalist rather than for a specialists. SMEs should rethink their criteria
Challenge of learning: focus is on acquiring tacit knowledge related to the specific context
of the firm rather than on gaining explicit knowledge. Training should include strategy and
communications seminars.
Expatriate management: they send employees for management development reasons
HR tasks may become a drain of managerial time and resources 2. Managers lack
significant training and development

Self-fulfilling prophecy? Internationalisation – SME approaches you for a job if you

want a global career you are not going to the apply for it. They offer me the job but I don’t
see a future in this firm. Stuck within the firm because they don’t have an opportunity. Very
difficult for SMEs to realise, greater global scope. If you don’t have the people in place,
mind-set intention.

Discussion Questions
1.Describe the formation process of cross-border mergers, acquisitions and
international joint ventures. What are the major differences?
2.Describe the development phases of an M&A and the respective HR implications.
3.Outline the development phases of an IJV and the respective HR implications.
4.In which ways do cultural and institutional differences impact the HR integration in
M&As and in IJVs?
5.What are the barriers to internationalization for SMEs?
6.What are some of the typical challenges for HRM in internationalized SMEs?

Summary

-What information did Dowling et al. (2013) convey?

-What information did the lecture convey?
-General impressions?
Chapter 10 – IHRM Trends: Complexity, Challenges and Choices in
the Future
Using knowledge that we have – new solutions new insights
What boundaries did you need to entrepreneurial business if you want to go abroad, how would you
structure your HR team if you don’t want to fail
Learning Objectives

Terrorism – how would we define Terrorism within firms (Luxair – airplane companies)
We identify and comment on observed trends and future directions:
• International business ethics and HRM
• Mode of operation and IHRM
• Ownership issues relating to IHRM requirements of organizations other than the
large multinational, such as:
o family-owned firms
o non-government organizations (NGOs)
 • Safety and security issues
We identify and comment on observed trends and future directions:
• International business ethics and HRM
• Mode of operation and IHRM
• Ownership issues relating to IHRM requirements of organizations other than the
large multinational, such as:
o family-owned firms
o non-government organizations (NGOs)
• Safety and security issues

Ethics – standards that you are held to base on society things – generated on society
Morals – how you feel you’ve acted your moral compass is it on or off?

Scenario – When is different just different? When is different really wrong or right? Google
Donaldson Harvard Business Review READ Relatism, Absolutism, Universalism
• “A group of investors became interested in restoring the SS United States, once a
luxurious ocean liner. Before the actual restoration could begin, the ship had to be
stripped of its asbestos lining. A bid from a U.S. company, based on U.S. Standards
for asbestos removal, priced the job at more than $100 million. A company in the
Ukrainian city of Sevastopol offered to do the work for less than $2 million. In October
1993, the ship was towed to Sevastopol” (Donaldson, 1996, p. 47).

• How can individuals in a firm do their decisions? – firm one wrong step – union are
on their heels. What kind of ethical decision process we can engage in?

• There are external and internal factors

Three main responses ethical decision-making
• Ethical Relativism
– No universal/international rights and wrongs; all depends on a particular
culture’s values and beliefs
– “When in Rome, do as the Romans do.” Ask the people in the country
• Ethical Absolutism
– Gives primacy to one’s own cultural values
– “When in Rome, one should do what one would do at home, regardless of
what the Romans do” ethical or not you would do it how you do it at home
• Ethical Universalism
– Believes there are fundamental principles of right and wrong across cultural
boundaries
whatever decision we do make, they might know about the contract but they are not
top management – implication HR department are responsible to formulate implement assess the
effectiveness for any policy that could prevent any wrong doing that is technical or whatever not in a
good position. Ex. UQ-every three or four months receive an email – not telling me – going to the
office and I will tell them – and resolve the problem, centralized system potential circumstances. Firms
shouldn’t act any different – the way that firms look ahead. The larger the organization get, expats
leaving ethical understandings. The firm has to influence their thinking. Mendenhall – people go
overseas the mindset that expats might carry with them. Some decisions are always going to be
bound – very unlikely to implement something. ETHICS and technical here is some language training
ethical component should be there

face with an ethical dilemma – no integrity officer – faced with this dilemma – me nor the firm the main
test is whatever decision you make and the result would be would you feel kook the next day sour
decision or sour result would you be okay being front page news positive or negative
Book: when an MNE select international assignees – pre departure training or orientation
program should include ethics component that includes discussions of ethical dilemmas that
expats encounter- moral imperatives. There are low-cost strategy has an impact on direct
employee and contractor wages health care benefits and working conditions and job
security. Wal Mart Superstores on traditional local retail establishment, city center
infrastructure and small population – initiated a worldwide discussion of the economic social
and political consequences of global business.
Some Tests for organizing ethical decisions
Will someone be hurt in this situation? Emotional or physical
Is anyone being coerced, manipulated or deceived?
Is there anything illegal about the situation?
Does the situation feel “wrong”?
Is someone suggesting there is an ethical problem?
Would you be ashamed to tell someone important to you about your contemplated actions?
Do the outcomes on balance appear positive or negative? Long list neg or pos things
Do you or others have the right or duty to act in the situation? Do you have the authority to
do this some overstep their boundaries?
Is there some aspect of the situation you are denying or avoiding? Are you being truthful to
yourself ? at the end of the day the firm will protect me – no firm will do it
Balancing the Extremes: Three Guiding Principles
“When it comes to shaping ethical behaviour, companies must be guided by three principles:
– Respect for core human values, right to a meal& rest which determine the
absolute moral threshold for all local traditions
– Respect for local traditions
– The belief that context matters when deciding what is right and what is wrong”
(Donaldson, 1996, p. 52). Download
No right or wrong in the exam! discussion with yourself give the layout of the field looking of
all the stakeholders who are important

We identify and comment on observed trends and future directions:

• International business ethics and HRM
• Mode of operation and IHRM
• Ownership issues relating to IHRM requirements of organizations other than
the large multinational, such as:
o family-owned firms
o non-government organizations (NGOs)!! Greenpeace Red Cross World Vision
–implications of their actions principles and actions? Your opinion in everything in our
class – should they treat their human capital the same way as MNE treating them?
Does it make sense does it not make sense????
o Book: events such as anti globalization rallies and protests, how these
organizations have become internationalized and interact with the key MNE in
a range of global industries that is seeking to influence – Oxfam, care
international which is now a global organization with over 110 million
beneficiaires  show the impact and influence of NGOs which will continue
the importance to the activities of MNEs.
• Safety and security issues (RISK Management in firms)- natural disaster man-made
disaster, economic risk, different currencies, refugees crisis what does that mean for
any operations – how can we begin to identify their talent and how can we absorb
their talent? how can we train talent, talent management !! look at people who have
been well trained, technical degrees who have done something, considered as talent
but the teacher doesn’t think that’s not the right way to look at it.

We identify and comment on observed trends and future directions:

• International business ethics and HRM
• Mode of operation and IHRM
• Ownership issues relating to IHRM requirements of organizations other than the
large multinational, such as:
o family-owned firms
o non-government organizations (NGOs)
• Safety and security issues
Transparency International Corruption
 Perceptions Index 2006

Starting point areas for corporate risk assessment categories

1. In-facility emergency and disaster preparedness
2. In-facility security
3. Industrial espionage, theft, and sabotage
4. Cyberterrorism
5. Out-of-facility fire and travel risks
Book:risk categories as disaster protocols, workplace violence, in house security, each
company has his own critical incidents as for instance an airline or aircraft disaster. ( bomb
threat procedures, risk control for violence in the facilty, search protocols inot and out of
facilities, internal communications emails and telephones, open records protection,
employee privacy regulations, physical inspections, Cyber terrorism – hardware, software to
deal with hacking, internal sabotage, backup system for information systems. Terror is more
influenced by travel – travel to another region or country. Low risk firms do not need to invest
so much in heavily security systems and protocols
Talent is most needed in developed labour markets and from developed markets deployed
to emerging markets
Discussion Questions
1. What is your view of international initiatives to criminalize foreign bribery?
(Bestechung)
Bribery undermines equity, efficiency and integrity of products and may affect the
safety and economic wellbeing of the general pulic. HR can understand the
difference between corrupt bibery payments gifts and allowable facilitation paymets
and the development of negotiation skills to handle problem situations that may arise
in senstitive geographical regions and industries.
Transparency International (TI) publishes an annual Corruption Perceptions Index.
2. Identify a number of HRM problems that typically arise with expatriate assignments.
In what ways might the core ethical values and guidelines identified in this chapter
apply to them?
3. Why is management succession frequently an issue for family-owned firms?
4. Beyond checklists and systemic analysis, what actions can MNEs take to reduce
risks related to terrorism? What roles can HRM take in these processes?
5. What IHRM activities would be pertinent to the sending, by Medicines Sans
Frontieres, of a medical team into a country such as Bangladesh?
What firms do – firms make money, it’s not their responsibility to make you happy when
you go home at the end of the day
Economist 2014 Page 44 electricity in Africa – potential big downsides
China and Nigeria – Chinese firms coming to Nigeria with the assumption that any rule is
more corrupt. how would Chinese work? What training and development are there?
These are not just policies and practices? It is nonexistence do we have the right people
in our department we need people to work them – these people who think in a more
strategic line who are we going to take with us? Within firm – externals? What’s the
compensation system? Based on the industry size of the firm? Context/ a number of
African countries has opened their country and find some investors?

Or ebola – doctors that are entrained to work there? To what extent were they –
contextualisation – takes time, curiosity very base line issue

FINALLY – disaster prepare this plan – to seem some successes