Chapter 12: Strategic Human Resource Management They provide a specific type of personnel that is not available in

of International Assignments
The Different Approaches to International Staffing
The international HRM literature uses four terms to describe MNE
approaches to managing and staffing their subsidiaries.
Ethnocentric Approach. Foreign subsidiaries have little autonomy
and key decisions are made at headquarters rather than at
subsidiaries.
the host country. They assist in sharing and transferring
information, as well as developing the capacity of managers. The
roles are tactical and strategic in nature.
Fulfilling a Specific Need for Personnel and
Know-how
The first role of international assignments is to fulfill the
insufficient technical and managerial competencies in certain
countries where the market structure is often characterized by a
shortage of engineers, senior technicians, and trained managers.

Polycentric Approach. The MNC treats each subsidiary as a

Sharing and Transferring Knowledge
distinct national entity and empowers it with some decision-
A multinational organization can send an expatriate employee
making autonomy. Subsidiaries are usually managed by local
abroad to better understand a subsidiary's activities in a particular
nationals, who are seldom promoted to positions at
context. Expatriation allows for a rapid and efficient transfer of
headquarters.
know-how. The information exchange takes place not only during
the expatriation, but also afterward.
Geocentric Approach. With this approach, the MNC designs its
strategy from an international standpoint right from the
The Development of Managers and their Implication Toward
beginning. In order to be successful, this approach to staffing
the Organization
without regard to nationality must be accompanied by a
International assignments constitute a proven method for
worldwide, integrated business strategy.
developing global managers. Most senior managers have
extensive international experience. Expatriation can play a
Regiocentric Approach. The MNC that favors a geocentric
prominent role in developing managerial competencies and
approach adopts uniform practices for all managers within the
fostering loyalty. Organizations that use expatriation to improve
same geographical zone. Personnel may move outside of their
their managers' competencies associate international
countries, but only within their particular geographic region.
assignments with a promotion.

Functions of International Assignments

Control of Activities. In an international context, the transfer of
managers constitutes an informal control mechanism. Expatriate
employees are used to reduce the uncertainty stemming from the
environment. The higher the interdependence between the head
office and the subsidiaries, the more the expatriates' function will
be control oriented.
Coordination of Activities. International assignments are aimed at
reinforcing the integration of individual and organizational
dynamics. Expatriates as well as impatriates play an essential part
in the coordination of subsidiaries' activities. According to
Janssens and Brett, global organization relies on three elements:
centralization, formalization and socialization.
The various functions of international assignments demand
different types of international employees, with different profiles.
For instance, if the main purpose of an assignment is managerial
development, an organization will select a junior manager or a
high-potential employee. If, on the other hand, an assignment's
main purpose is to control a subsidiary's activities, an experienced
manager is needed.
Types of International Personnel
In this section, we will look at the main categories of international
employees, discuss their respective advantages and
disadvantages, and present the various types of assignments for
employees from the organization’s country of origin.
The Different Categories of International Personnel
The PCNs are employees from the multinational’s head-office
(expatriate employees). For instance, a Japanese manager
working in a Japanese multinational’s French subsidiary is an
expatriate, or a PCN.
The HCNs are employees from the host country (the subsidiaries).
The TCNs are employees from countries other than that of the
multinational’s head office and that of the subsidiary.
“Impatriates” (as opposed to expatriates) are HCNs sent to the
head office. The reasons most frequently cited to justify hiring
HCNs for transfer at the head office have to do with competence
development of managers, knowledge transfer, and subsidiary
integration.
Six criteria seem relevant to discuss the respective advantages
and disadvantages of these three categories of international
employees.
1. Cost
2. Knowledge of the organization (products, organizational
culture)
3. Cultural proximity
4. Knowledge of the local environment
5. Attitude of the foreign government
6. Promotability of local employees
An expatriate's salary is two to two and a half times that of a local
employee or of a TCN. The high cost of expatriation sometimes
leads the organization to opt for other solutions, such as short
term assignments. PCNs possess extensive knowledge of the
organization: its products, its managers, and organizational
culture. Training HCNs seems simpler, from a short-term point of
view, than selecting high-potential employees from the
organization's country of origin and spending resources in order
for them to adjust to the host country. Third country nationals can
be closer to the country of origin's culture than HCNs, but they
hinder local managers' chances to get promoted.
The Different Types of International Assignment for PCNs
Within organizations, many types of assignments can be found
for PCNs. The duration of assignments distinguishes between
expatriations and different kinds of short-term assignments.
Long-term Assignments, or Expatriations. An expatriation is an
assignment abroad, for a duration of one to five years. The
employee and his family are relocated to the host country. In
order to avoid those costs and the difficulties associated with
managing expatriates, more and more companies reduce the
number of expatriate employees, propose shorter-term
assignments, localize their expatriates, offer less generous
compensation packages, and hire more local employees.
Short-term Assignments (1–12 months). Short-term assignments
are used to compensate for the lack of mobility of dual-career
couples, according to Harris. According to Harris, "international
commuters" and "frequent flyers" are used as alternatives to
long-term expatriation. International commuters and frequent
flyers travel between their countries of origin and the host
country of origin once or twice a week. Short-term assignments
may prove stressful for employees.
Global Managers. Global managers have an international career.
The management of their career is centralized at the head office.
Global managers have shown their ability to survive and work
efficiently in various cultures. The international life style is a true
motivation for them, and the manager strings together multiple
expatriations.
International Junior Managers. Organizations use global
managers and expatriates for strategic assignments, short-term
assignments for tactical missions, frequent flyers for operational
missions, and international junior managers for managerial
development. These distinctions between the various types of
international assignments for PCNs give organizations the
flexibility to react to the different problems they encounter at the
lowest possible cost.
Strategic Management of International Assignments
Many companies are sending employees and managers abroad
to implement their global strategies. Black and Gregersen showed
that expatriates cost two to three times what they would in an
equivalent position back home. Value created by international
assignments depends on the way they are planned and managed.
Waxin et al. propose a model for the strategic management of
international assignments.
Strategic Planning and Job Analysis
According to Waxin et al., the first step for each international
assignment consists of (1) the goals, (2) the job description, (3)
the job specification and (4) the ownership for the responsibility
of managing the full expatriation/ repatriation cycle.
Dowling and Welch12 distinguish between hard, soft and
contextual job goals. Job goals will be translated into
performance appraisal criteria so specificity and measurability are
essential. There are considerable differences in the way the goal
setting process is handled in different countries. The job analysis,
which comprises of the job description and the competency
profile, must then be carried out. Harvey14 suggests that job
analysis must generate criteria that adequately capture the nature
of international work as opposed to the domestic context. The job
specification states the required knowledge, abilities (know-how)
and experience, and personal characteristics for the job. Ideally,
the job specification will be used again as a basis for the choice
of the evaluation criteria.
Recruitment of International Employees
Recruitment Sources. The majority of firms depend almost
exclusively on internal recruitment for foreign positions. This
preferred recruitment option can be found even in local markets.
Internal recruitment is justified if the strategic purpose of the
assignment is coordination or control of operations.
Recruitment Methods. HR departments need to build global
databases that include data on potential candidates. The major
internal recruitment methods for international positions are
(international) job posting and utilization of internal databases.
External recruitment methods include using the Internet,
launching campaigns in international media and using the
services of recruitment agencies and/or international head-
hunters.
Selection of International Employees
Selection Criteria. In theory, the choice of selection criteria for
international employees is based on an analysis of the
characteristics of the multinational. Depending on the results of
this analysis, the ideal candidate's profile varies from one
international assignment to the other. If the job analysis has been
done properly, the selection criteria will be based on the
international assignment's competency profile. In the context of
an international assignment, criteria related to the cross-cultural
competencies and individual characteristics should be
considered.
Choice of Evaluators. iHRM specialist's role is limited to that of an
advisor, while the actual decision is taken by the managers alone.
Black et al. recommend forming an expatriate selection team
which includes managers from the country of origin and
managers from their home country. Marchon states that when the
expatriation is requested by a subsidiary, the selection process is
more transparent.
Selection Methods. Interview is the most used and is still regarded
as the most effective method to select overseas assignees.
Selection decisions are taken by consensus amongst selectors. An
open formal selection system forces selectors to question their
assumptions about women's or other minorities' suitability for
international management positions.
Preparation to Transfer
The preparation step is the first step in the process of selecting a
suitable candidate for an international assignment. It includes
organizing preliminary visits, providing practical assistance to the
international employees, providing language and cross-cultural
training. The purpose of this step is to provide the necessary
elements that will help them succeed during their international
assignment by facilitating their adjustment in the host country.
Preliminary Visits or Look-see Visits. This is a trip to the host
country offered to the assignee so that he or she can assess by
himself the situation he or she will have to face. This option is
sometimes used at the end of the selection process so that the
candidate can confirm his or her acceptance of the position.
Usually, a preliminary visit includes the spouse, sometimes the
children.
Practical Assistance. The organization should give adequate
notice of the new posting given the professional and personal
arrangements that the employee will need to make before he
leaves his home organization and country. Informing the
expatriate on how the transfer will occur and how life in the host
country will be will reduce the stress.
Language Training. The assignee is taught the language of the
region where he or she will be sent. According to Ashamalla,
language ability facilitates the adjustment in the local
environment and enhances effectiveness in dealing with foreign
counterparts groups including government officials, bankers,
labor organizations, suppliers, and customers. The rigor of the
training should depend on the relational aspect of the expatriate’s
job.
Cross-cultural Training. The objective of cross-cultural training is
to teach members of one culture how to interact effectively with
members of another culture. Brislin identifies three methods of
cross cultural training: cognitive, affective, and behavioral. Tung
suggests that the training method should be chosen according to
the type of assignment. Gertsen proposes a typology of training
methods encompassing four categories.
Pre-departure Cross-cultural Training Effectiveness
In-country real-time training is one of the three new tendencies
emerging for HR managers in international HR area. Cross-
cultural training associated with improved self-confidence,
development of appropriate behaviors and improvement of
relationships with host country's inhabitants. The larger the
cultural distance between the country of origin and the host
nation, the more pronounced are the effects of this type of
training.
Adjustment of the Expatriate Manager: Organization Support
upon Arrival and during the Assignment
When an expatriate lands in a new country, he or she needs
further support from the company. The company must also keep
links with the employee so that the employee does not suffer
from out-of-sight, out of-mind syndrome. First, we will define the
notion of adjustment and present the adjustment model.
The Process of Cross-cultural Adjustment
The degree of adjustment of expatriates partially predicts
performance and completion of the mission. From managers'
perspective, adjustment is a factor of job satisfaction and
psychological well-being. Black defined intercultural adjustment
as "the degree of an individual's psychological comfort with
various aspects of a host country". Black and Mendenhall
summarize the curve’s four steps in the following manner:
1. The first stage of expatriate adjustment is referred to as
the “honeymoon” period.
2. The second stage, characterized by disillusionment and
frustration, is that of the culture shock..
3. The third stage is characterized by a gradual
adjustment to the new context.
4. The fourth stage, “mastery,” is characterized by a
regular improvement in the individual’s ability to
function efficiently in the new culture.
The U-shaped curve theory and the concept of culture shock hide
the multi-dimensional character of the adjustment process.
The Integrated Cross-cultural Adjustment Model
Black et al. introduced the concept of "anticipation" in the cross-
cultural adjustment model. This is the anticipated adjustment
phase, which takes place before the adjustment phase in the host
country. Culture of origin has a direct effect on the three facets of
expatriate adjustment. There are three major categories of
variables influencing expatriates' adjustment following
expatriation: organizational, individual, and contextual variables.
 Job-related Factors. Job-related factors of adjustment
encompass role clarity and role autonomy.
 Organizational Social Support. This encompasses supervisory,
coworkers, and home-country organizational social support.
 Logistical Support. Organizational logistical support can
include a career assistance service for the spouse or a
relocation service, which helps to reinstall the transferee’s
family.
 Intercultural Training. Much of the literature suggests that
training enhances expatriates adjustment.
 Organizational Similarity. Perceived dissimilarity between
home country and host-country organizations is a source of
uncertainty and stress and thus relate negatively to expats
adjustment.
Individual antecedents of expatriates’ interaction adjustment are
the six dimensions of expatriates’ adjustability and prior
international experience.
 Adjustability. Based on the works of Mendenhall and Oddou
and Black, recent studies have identified six dimensions of the
expatriate’s adjustability, each one being measured by a
battery of items.
 Prior International Experience. Theoretical discussions have,
for a long time, included previous international experience as
relevant for the adjustment process.
Finally, contextual antecedents encompass partner’s social
support, time spent in the host country, and culture of origin.
 Partner’s Social Support. Partner’s social support is viewed in
the literature as an important influence on the worker abroad.
 Length of Time Spent in Host Country . Adjustment is a time-
related process. Individuals need time to get accustomed to
their new environment and learn the host country culture and
appropriate and acceptable behaviors.
 Culture of Origin. Research suggests that the more different
the host culture is from the home culture, the more
demanding the adjustment will be. This phenomenon is
known variously as the effect of cultural distance or culture.
Research suggests that culture of origin/cultural distance is a
significant predictor of adjustment. Cross-cultural training
appears to be an important factor of adjustment, especially when
it comes to interaction and general adjustment. Managers might
use the results of this study to facilitate the adjustment of
expatriates to their new position abroad. The company could
grant the expatriates leave for the first critical days, or at least
allow him/her flexitime during the first week.
 Providing help to the expatriate to fix his or her administrative
and practical duties will allow him or her to quickly
concentrate on the job-related issues of the assignment.
 Moreover, to assist the expatriate in his or her early
adjustment, the company should also provide him/her with
local information about the social events happening in the
region and the different social clubs.
 Furthermore, the support on arrival should also take into
account the work environment. The expatriate should be
properly introduced to his colleagues and the employees he
will work with.
 Finally, continuing an on-site cross-cultural training during the
early stages of the assignment will also prove useful to
accelerate the expatriate’s adjustment process.
Ongoing Support. Hippler writes that in the ideal case the on-
arrival support with regard to social integration has proven
successful to an extent that the expatriate needs no further formal
assistance, social support being normal.
 The host company should design a local coach to whom the
expatriate can turn whenever he or she experiences sudden
difficulties.
 The home company could formally or informally appoint the
expatriate with a sponsor/mentor based in the home
organization. Sponsors/mentors could also play an important
role at the repatriation step. In any case, the expat should do
 his or her best to keep formal and informal contacts with
former collaborators.
 The home company should also stay in contact with the
expatriate throughout the assignment, to keep him/her
updated about the changes in the domestic operations, the
evolution of the organizational policies, the ongoing projects,
and the staffing changes.
 Finally, the expatriate should keep in touch not only with his
or her home company, but also with his or her family and
friends, because being separated from relatives and friends is
one of the worst aspects mentioned by the expatriates about
their international assignment.
In-post support systems should be established for expatriates
working in Switzerland, according to Katz and Seifer. The
establishment of mentorship programs in the home company is
not much developed. Only one company, Holcim, organizes
formal contacts between expats and HR department of the home
country.
Support for the Family. Spouses of other employees should be
encouraged to take an interest in the newly relocated spouse and
provide him/her with information about the local area.
 Language courses should be provided for the spouses during
the assignment, since they will have frequent contacts with the
local population when accomplishing the basic tasks of
household, going shopping, or dealing with the school.
 The organization should also provide a support for the
spouses who want to work in the country of assignment,
 Finally, the children’s adjustment and education are critical
issues in the mind of most expatriated parents. The company
must make sure that the children will be able to attend a
school providing a good teaching
Performance Appraisal
The evaluation serves several purposes: development, evaluation
of the employee's contribution, give grounds to administrative
decisions regarding, for instance, compensation and promotions.
When designing a performance appraisal system, at least four
elements should be taken into account: the objectives of the
organization, the staffing perspective, the internationalization
strategies, and the particularities of the local context. The
difficulties and specificities of performance appraisal in an
international context come from the possible conflict between
global and subsidiary objectives.
The Evaluation Criteria. In an international context, the evaluation
of performance appraisal criteria is somewhat subjective and
more complicated due to cultural biases. Black et al. mention that,
in the case of an expatriate, the criteria which are seen as factors
of success in the home country may make no sense in a foreign
setting. An appraisal system using multiple hard, soft, and
contextual criteria is strongly recommended.
The Evaluators. As in any evaluation, the raters must have the
theoretically, the evaluators can be a manager from the home
country organization or from the regional headquarter. In
practice, the local supervisor is the most likely possibility to assess
the expatriate performance. Black et al. suggest that a team of
organization members should be involved in the performance
appraisal of global managers.
The performance Feedback. Most expatriates are evaluated once
a year and sometimes by a geographically distant evaluator.
People from different cultures give and take appraisal feedback
in very different ways.
Compensation of International Employees
Total pay packages have four components: the base salary, taxes,
benefits, and allowances. Three standard methods are regularly
utilized by multinational companies to determine base salary of
their international employees. Different kinds of allowances are
meant to compensate particular troubles related to the
relocation. The objectives of an effective compensation system
are to attract and retain quality people for global assignments.
Finally, taxes and benefits have to be fixed.
1. Three methods to determine the base salary
a. Balance Sheet Approach. This is the most commonly
used approach. It entails developing a total
compensation package that equalizes the purchasing
power of the expatriate with that of employees in
similar positions in the home country and provides
incentives
b. Host-based Approach. The host-based approach
calculates the base salary relating to the host-country
standards. Typical allowances will also be added in
order to create a fair compensation package. This
method reduces the inequality between expatriates
coming from different locations and working in the
same area, as well as local employees.
c. International Approach. The international approach
tries to create an equitable system among all
international employees. This method begins with a
common point of reference for expatriates who receive
equivalent pay and benefits regardless of their country
of destination. This approach is more easily applicable
when the international employees are career
internationalists.
2. Tax equalization allowances
Tax equalization allowances are necessary because of the
countries’ different taxation systems.
3. Benefits
Most of the difficulties encountered at this place relate to the
transportability of the pension plans and the heath care
coverage.
4. Allowances
The allowances can be offered in nature or in cash. They can
be paid in a lump sum or throughout the assignment as a part
of the monthly compensation.
 Cost of living allowances are payments that offset the
differences in expenditures on day-to-day necessities
between the host country and the parent country.
 Housing allowances ensure that the expatriate can
maintain the same home country housing standard.
 Education allowances cover the educational costs of the
children of the expatriate, when they have to be placed in
private home country language schools.
 Relocation allowances usually cover the costs of the
moving.
 Home-leave allowance consists in air fare between the
countries of assignment and origin for the expatriate and
his or her family.
Repatriation and Retention
The repatriation is the activity of bringing the expatriate back
to the home organization. Although it is now widely
recognized by managers and academics that repatriation
needs careful managing, this step is generally neglected.
Potential Problems Faced by the Expatriates
Although the expatriate and his or her family reintegrate their
culture of origin, a several-year experience in a foreign culture
makes the rehabilitation difficult. Other problems associated with
re-entry into the home organization include loss of status, loss of
career direction, and a feeling that their international experience
is undervalued by the company. In the next paragraphs, we will
examine how to build an effective repatriation system. The spouse
may encounter difficulties to reintegrate into the domestic
employment market, especially if he or she has not worked during
the assignment.
Building an Effective Repatriation Process
The company must anticipate the repatriation problems and plan
actions to facilitate the reintegration of its international
employees and their family.
Determination of Ownership for the Repatriation Activities. Black
et al. propose the creation of a repatriation team to handle the
repatriation process. The role of this team is to initiate the
preparation for the return and to identify an appropriate return
position for the expat. Confusion will make communication
between the expatriate and the HR more difficult, and will make
the expatriate feel less supported. The role of this team is to
initiate the preparation for the return and to take responsibility
for identifying an appropriate return position for the expatriate.
Pre-return Preparation. The repatriation should be planned much
before the effective home-coming, and should ideally start at
least six months before the end of the international assignment.
 The company should give the expatriate sufficient time
between the warning of the repatriation and the
effective transfer to allow the expatriate and his or her
family to make anticipatory adjustment before
returning to the home country.
 The company should inquire about the expectations of
the expatriate regarding his or her expected return job
 and his or her career goals and initiate an internal
search to find a suitable position.
 Periodical visits to the home country just prior to the
repatriation give the expatriate the opportunity to
develop accurate expectations about what
happening in the home country and in
organization.
 The company should also provide pre-return training
and orientation. Essential information about the
repatriation process can be provided.
 Finally, the company should provide assistance to the
expatriate family to find a suitable accommodation
back home.
Post-return adjustment. Black et al. note that the most pivotal
component of successful repatriation for expatriates is the
selection of a return job assignment. In order to avoid
potential problems between the expatriate and his or her
colleagues and supervisor, they could also attend training or
an orientation program. Findings are consistent with many
past surveys. The effectiveness rate of different ways to reduce
expat turnover ranges from high, to low effectiveness.
Retention. Many expatriates leave their company on return
with the consequent loss of investment and expertise.
Moreover, the departure of high-potential repatriates is not
only a loss for the company, but may give an advantage to
competitors that could attract them and take advantage of
their international experience.
Women in the Global Arena
The number of female expatriates is low in relation to the overall
size of the qualified labor pool. However, the proportion of
is females is increasing clearly and steadily. Recent studies
challenge the usual beliefs regarding the low suitability of females
the
for international assignments. Caligiuri and Tung found that
females can perform equally as well as males regardless of a
country's attitude toward women in managerial positions. Stroh
et al. found that US and Canadian women are interested in and
likely to accept foreign assignments.
Being foreign women granted them higher visibility, and so was
an advantage in terms of getting access to key local persons. The
predictors of success of women expatriates are the same as for
their male counterparts. With more women becoming expats, it
can be expected that traditional assumptions and the related
questions will gradually disappear. Finally, Napier and Taylor
studied female expatriates from different countries, Japan, China,
and Turkey, distinguishing between traditional expatriates,
trailers (spouses of males expatriates), and self-selected
expatriates.