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In addition to cost savings, the global sourcing 

of talent provides capability that is difficult 

to build within one country or one time zone. 

For instance, Oracle's spokesman David Samson 

As the global economy becomes more and argues "Our aim here is not cost driven. lt's to 

more interdependent, companies are forced to build a 24/7 follow-the-sun model for develoo- 

make tough decisions regarding the sourcing of ment and support. When a software engineer 

their work. lt used to be that when a company goes to bed at night in the U.S., his or her 

based in the United States needed to manufac- colleague in India picks up development when 

ture goods closer to their global customers, the they get into work. They're able to continually 

rationale seemed obvious and few people develop products." 

balked. Then, as companies found that locating However, in spite of the cost and capability 

manufacturing overseas could capitalize on advantages, offshoring of jobs can result in 

lower labor costs, enabling them to then ship considerable negative publicity. For instance, 

those goods to the United States (consequently, IBM's efforts to develop offshore call center and 

not needing U.S. manufacturing plants as information technology capability has elicited 

much), public sentiment began occasionally to significant backlash in the United States. 

turn negative. However, most recently, enabled Internal IBM employees have recorded calls 

by global telecommunications technology, and released internal memos that provide 

companies have discovered that they can locate negative grist for opponents to focus on. For 

call center jobs and information technology jobs instance, a recorded phone call of lBMt 

(such as software coding or computer chip director of global employee relations, Tom 

design) in countries such as India or China ano Lynch, was released, in which he and other 

realize as much as a 75 percent labor cost executives were suggesting they should move 

savings. For instance, Stephanie Moore, vice some jobs now done in the United States to 

president of outsourcing at Forrester Researcn, lndia or other countries. "Our competitors are 

states "You can get crackerjack Java program- doing it, and we have to do it," he stated. He 

mers in India right out of college for $5,000 a also suggested, "Governments are going to 

year versus $60,000 here. The technology is find out that they're fairly limited as to what 

such, why be in New York City when you can be they can do, so unionizing becomes an 

9,000 miles away with far less expense?,, Such attractive option." 

savings cannot be ignored by companies whose Ultimately the dilemma is what to do about 

customers want low costs and shareholders those whose jobs are being replaced. In the call 

want high profits. 

Mr. Lynch stated, "One of our challenges that we 

For instance, General Electric has thousands of deal with every day is trying to balance what the 

call center, research and development. and infor- business needs to do versus impact on peopte. 

mation technology workers in India. peter Stack, This is one of these areas where this challenqe 

a G.E. spokesman, stated "The outsourcing pres- hits us squarely between the eyes." 

ence in India definitely gives us a competitive 

advantage in the businesses that use it. Those 

businesses are some of our growth businesses, 

and I would say that they're businesses where our 

overall employment is increasing." 

Source: From "lBM Explores Shift of White-Collar Jobs Overseas,,, bv 

S. Greenhouse, New York Times, July 22,2003. Copyright O 2003 by The 

New York Times Co. Reprinted with permission. W Bulkeley (July 29, 

2004) IBM now plans fewer layoffs {rom offshoring. http://online.ws1. comr 

article_prinVO,,SB 

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cHAPTER l5 Manaqinq Human Resources Globallv 659 

in the United States, and they have been growing at a rate of 12 percent a year 

. < ^ ^ E l 

srnce IYd /.' 

Indeed, most organizations now function in the global economy. Thus U.S. 

businesses are entering international markets at the same time foreign companies 

are entering the U.S. market. 

What is behind the trend toward expansion into global markem? Companies are attempting 

to gain a competitive advantage, which can be provided by intemational expansion 

in a number of ways. First, these countries are new markets with large numbers of 

potential customers. For companies that are producing below their capacity, they provide 

a means of increasing sales and profits. Second, many companies are building production 

facilities in other countries as a means of capitalizing on those countries' lower labor costs 

for relatively unskilled jobs. For example, many of the ma4uiladoraplants (foreign-owned 

plants located in Mexico that employ Mexican laborers) provide low-skilled labor at 

considerably lower cost than in the United States. In 1999, the average manufacturing 

hourly wage in Mexico was $2.12.3 Third, the rapid increase in telecommunications and 

information technology enables work to be done more rapidly, efficiently, and effectively 

around the globe. With the best college graduates available for $2.00 an hour in India 

versus $12-18 an hour in the United States, companies can hire the best talent (resulting 

in better work) at a lower cost. And because their day is our night, work done in the 

United States can be handed offto those in India for a7417 work process.4 

According to a survey of almost 3,000 line executives and HR executives from 

12 countries, international competition is the number one factor affecting HRM. The 

globalization of business structures and globalization of the economy ranked fourth 

and fifth, respectively.5 Deciding whether to enter foreign markets and whether to 

develop plants or other facilities in other countries, however, is no simple matter, and 

many human resource issues surface. 

This chapter discusses the human resource issues that must be addressed to gain 

competitive advantage in a world of global competition. This is not a chapter on international 

human resource management (the specific HRM policies and programs 

companies use to manage human resources across international boundaries).6 The 

chapter focuses instead on the key factors that must be addressed to strategically manage 

human resources in an international context. We discuss some of the important 

events that have increased the global nature of business over the past few years. !7e 

then identify some of the factors that are most important to HRM in global environments. 

Finally, we examine particular issues related to managing expatriate managers. 

These issues present unique opportunities for firms to gain competitive advantage. 

Current Global Changes 

Several recent social and political changes have accelerated the movement toward 

international competition. The effects of these changes have been profound and farreaching. 

Many are still evolving. In this section we discuss the major developments 

that have accentuated the need for organizations to gain a competitive advantage 

through effectively managing human resources in a global economy. 

ff.* n*p*xn ffi c*m*m le **ru* mr* n ity 

European countries have managed their economies individually for years. Because of 

the countries' close geographic proximity, their economies have become intertwined. 

This created a number of problems for international businesses; for example, the 

f-*!t 

ldentiiy the Recent Changes 

That Have Caused 

Companies to Expand into 

International Markets.

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@ 

The most recent round of GAIT negotiations resulted in an 

agreement to cut tariffs (taxes on imports) by 40 percent, reduce 

J'ove-rx^me,nl -suhtidie-s fo brr-r.rile,sses.. e4oand protection of intellectual 

property such as copyrights and patents, and establish 

rules for investing and trading in services. It also established the 

World Trade Organization (WTO) to resolve disputes among 

GATT members. 

These changes-the European Economic Community, 

NAFTA, the growth of Asia, and GAfT-all exemplify events 

that are pushing companies to compete in a global economy. 

These developments are opening new markets and new sources 

of technology and labor in a way that has never been seen in history. 

However, this era of increasing international competition 

accentuates the need to manage human resources effectively to 

gain competitive advantage in a global marketplace. This re' 

quires understanding some of the factors that can determine the 

effectiveness of various HRM practices and approaches. 

Factors Affecting HRM in Global 

lvfarkets 

CHAPTER l5 Managing Human Resources Globally 66 1 

Companies that enter global markets must recognize that these 

markets are not simply mirror images of their home country. Countries differ along a number 

of dimensions that influence the attractiveness of direct foreign investment in each 

counrry. These differences determine the economic viability of building an operation in a 

foreign location, and they have a particularly strong impact on HRM in that operation' 

Researchers in international management have identified a number of factors that can 

affect HRM in global markers, and we focus on four factors, as depicted in Figure 15.1: 

culture, education-human capital, the political-legal system, and the economic system.l0 

The market in 

Asia presents a huge 

opportunity and will 

have a significant 

economic impact in 

future years. 

?-],*:-l:l* i5, i 

Factors Affecting 

Human Resource 

Management in 

lnternational Markets

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IEnPrÎPul aql 'serlrruB' etErPeru1ur ror{1 }o slserelur aql PUB slseJelul u1l\o Jleql JeuB 

{ool ot pelcedxe ere eldoed'spuelreqteN ar{t pue 'uretug reerg 'setelg petlun eql 

sB rlcns 'sarntlnc rsrlunpr^lpul u1 'dnor8 € jo sreqrueu s€ uer1t Jeqter slenplllpul sB loe 

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uae^l,req uouBler eqr;o qrSuens eqr seqrrrseP usl^llrallol-uslFnPlÎPul 'z'9I elqBJ 

ur paprnord aJe sautunor roleu g1 ro; soJofs e^rlEIeJ aqf 

/t'serntlnl 

SurzuetlereqJ ul 

sple ]eqt uolsuaullp qrJIJ € prppe Jr{ ^Pnts Jetel E uI er'paI}ISsBIr 

eq PFoc selnllnc sno 

-rJe^ qJrrl^\ uo suorsuJrulp;no; par;nuepl Jpels1oH uJeC (eJntlnr;o Apnrs JlsselJ e ul

United States 

.; 

uermany 

Japan 

France 

Netherlands 

Hong Kong 

Indonesia 

West Africa 

Russia 

Lntna 

40 Lb 

54M 

68H 

381 

68H 

/6 11 

77H 

95. H 

BO. H 

91 H 

67H 

45M 

llr.l 

80H 

25L 

14L 

IUL 

50. M 

20, L 

CHAPTER l5 Managing Human Resources Globally 668 

62H 

66H 

v5H 

43M 

14L 

5tfl 

46M 

46M 

40. L 

50. M 

46L 

65M 

92H 

86H 

53M 

29L 

481 

54M 

90. H 

60. M 

29L 

31 M 

80H 

30. L 

44M 

96H 

ZJ- L 

16L 

10. L 

118 H 

aPD : power distance; lD : individualism; MA - masculinity; UA: uncertainty avoidance; 

LT - long-term orientation. 

bH : top third; M : medium third; L - bottom third (among 53 countries and regions for the {irst 

four dimensions; among 23 countries for the fifth). 

'Estimated. 

SOURCE: From Academy of Management Executive by G. Hofstede. Copyright O 1993 by 

Academy of Management. Reproduced with permission of Academy of Management via Copyright 

Clearance Center. 

The third dimension, uncertainty avoidance, describes how cultures seek to deal 

with the fact that the future is not perfectly predictable. It is defined as rhe degree ro 

which people in a culture prefer structured over unstructured situations. Some cultures, 

such as those of Singapore and Jamaica, have weak uncertainty avoidance. They 

socialize individuals to accept this uncertainty and take each day as it comes. People 

from these cultures tend to be rather easygoing and flexible regarding different views. 

Other cultures, such as those of Greece and Portugal, socialize their people to seek 

security through technology, law, and religion. Thus these cultures provide clear rules 

as to how one should behave. 

The masculinity-femininity dimension describes the division of roles between the 

sexes within a society. In "masculine" cultures, such as those of Germany and Japan, 

what are considered traditionally masculine values-showing off, achieving something 

visible, and making money-permeate the society. These societies stress asser- 

tiveness, performance, success, and competition. "Feminine" cultures, such as those of 

Sweden and Norway, promote values that have been traditionally regarded as feminine, 

such as putting relationships before money, helping orhers, and preserving the envi. 

ronment. These cultures stress service, care for the weak, and solidarity. 

Finally, the fifth dimension comes from the philosophy of the Far East and is re. 

ferred to as the long-term-short.term orientation. Cultures high on the long-term 

orientation focus on the future and hold values in the present that will not necessarily 

provide an immediate benefit, such as thrift (saving) and persistence. Hofstede found 

that many Far Eastern countries such as Japan and China have a long-term orientation. 

Short-term orientations, on the other hand, are found in the United Stares, 

Russia, and lVest Africa. These cultures are oriented toward the past and present and 

promote respect for tradition and for fulfilling social obligations. 

The current Japanese criticism of management practices in the United States 

illustrates the differences in long-term-short'term orientation. Japanese managers, 

traditionally exhlbiting a long-term orientarion, engage in 5- to 1O-year planning. This 

table 15.2 

Cultural Dimension 

Scores for 

10 Countries 

{"f neertainty 

Avaidance 

One of Hofstede's 

cultural dimensions; 

describes how 

cultures seek to 

deal with an 

unpredictable future. 

Masculinity* 

Femininity 

Dlmension 



describes the 

division of roles 

between the sexes 

within a society. 

N-ong-Tenrn*$hort- 

Term OrientatiEn 



describes how a 

culture balances 

immediate benefits 

with future rewards.

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[ruouooe s,^J]unoc e tcelJe ot urees seJnllno 

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seq osle arntlnf, 'puno; epetsloH sV 'utats^s f,Ituouoce eql 'ruelsls 

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'auo 

PlBd-lsa^\ol 

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Pual leqlo 

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'dnor8 

lro,ry\ eqt Jo requleu e sB ulloJred lll^\ lenPl^lPul ue lle.t .e\oq Sulssasse 

uo erour sncoJ seruedurot (puBq leqto eql uo (sernllnr lslÎlsellor uI 'slllls l€If,os (luel 

-xr lrssel B ol (pue lllIS lerlurl)el s,lenpr^rpul uE Surssesse uo sulets^s uollf,rles snfoJ

cHAPTER l5 Managing Human Resources Globally 565 

Erg?rre 13.d 

The Position of the Studied Countries on Their Individualism Index (lDV) versus Their 1970 National Wealth 

lndividualism Index (lDV) 

Low 

g GUA 

* EOA PAN 

10 * col* € vEN 

rffo PE!* cos 

rerAr 

c snr cJL e stN 

High 

90 

ARG Argentina 

AUL Australia 

AUT Austria 

BEL Belgium 

BRA Brazil 

CAN Canada 

CHL Chile 

COL Colombia 

COS Costa Rica 

DEN Denmark 

tAl- tast Atnca 

(Kenya, 

Ethiopia, 

Zambia) 

EOA Equador 

YUG € HOK 

** PoR 

FIN Finland 

FRA France 

GBR Great Britain 

GER Germany 

GRE Greece 

GUA Guatemala 

HOK Hong Kong 

IDO Indonesia 

IND lndia 

IRA lran 

tKt tre{ano 

ISR lsrael 

ITA ltaly 

JAM Jamaica 

JPN Japan 

300 500 

National Wealth in 1970 (GNP/capita) in 10$ 

IDV.GNP: .84 

KOR South Korea 

MAL Malaysia 

MEX Mexico 

NET Netherlands 

NOR Norway 

NZL New Zealand 

PAK Pakistan 

PAN Panama 

PER Peru 

PHI Philippines 

POR Portugal 

SAF South Africa 

SAL El Salvador 

SIN Singapore 

SPA Spain 

SWE Sweden 

SWI Switzerland 

TAI Taiwan 

THA Thailand 

TUR Turkey 

URU Uruguay 

USA United States 

VEN Venezuela 

WAF West Africa 

(Nigeria, 

Ghana, 

Qiarra lanno) 

v , v , , s E v v , , v / 

YUG Yugoslavia 

SOURCE: G. Hofstede, "The Cultural Relativity of Organizational Practices and Theories," Journal of lnternational Business 

Studies 14, no.2 (Fall 1983), p. 89. Reprinted with permission of Palgrave Macmillan.

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Oz'anlE^ 

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tueuodrur uB sr ecro;lroirn per;r1enb B uIBtuIBuI pue puIJ ot lettuetod s,Luedruoo y


high-skill work at home.Z5 Countries like Mexico, with relatively low levels of human 

capital, might not be as artractive for operations that consist of more high-skill jobs. 

Countries with high human capital are attractive sites for direct foreign investment 

that creates high-skill jobs. In Ireland, for example, over 75 percent of 1B-year-olds 

attend college, a rate much hlgher than other European countries. In addition, 

Ireland's economy supports only 1.1 million jobs for a population of 3.5 million. The 

combination of high education levels, a strong work ethic, and high unemployment 

makes the counrry attractive for foreign firms because of the resulting high productivity 

and low rumover. The Met Life insurance company set up a facility for Irish workers 

to analyze medical insurance claims. It has found the high levels of human capital and 

the high work ethic provide such a competitive advantage that the company is currently 

looking for other work performed in the United States to be shipped to lreland. 

Similarly, as already discussed, the skills of newly graduated technology workers in 

India are as high or higher than those found among their counterparts in the United 

States. In addition, because jobs are not as plentiful in India, the worker attitudes are 

better in many of these locations.26 

F*Fiti*st -il*gal Systern 

The regulations imposed by a country's legal system can strongly affect HRM. The 

pohtical-legal system often dictates the requirements for certain HRM practices' such 

as training, compensation, hiring, firing, and layoffs. In large part' the legal system is 

an outgrowth of the cukure in which it exists. Thus the laws of a particular country 

often reflect societal norms about what constitutes legitimate behavior.2T 

For example, the United States has led the world in eliminating discrimination in 

the workplace. Because of the importance this has in our culture, we also have legal 

safeguards such as equal employment opportunity laws (discussed in Chapter 3) that 

st.ongly affect the hiring and firing practices of firms. As a society, we also have 

strong beliefs regarding the equity of pay systems; thus the Fair Labor Standards Act 

(discussed in Chapter 11), among other laws and regulations' sets the minimum wage 

for a variety of jobs. We have regulations that dictate much of the process for negotia' 

tion between unions and management. These regulations profoundly affect the ways 

human resources are managed in the United States. 

Similarly, the legal regulations regarding HRM in other countries reflect their societal 

norms. For example, in Germany employees have a legal right to "codetermination" 

ar the company, plant, and individual levels. At the company level, a firm's employees 

have direci influence on the important decisions that affect them, such as large investments 

or new strategies. This is brought about through having employee represen' 

ratives on the supervisory council (Aufsichtsrat). At the plant level, codetermination 

exists through works councils. These councils have no rights in the economic man' 

agement of the company, but they can influence HRM policies on such issues as working 

horrrr, payment methods, hirings, and transfers. Finally, at the individual level, 

employ..s have contractual rights, such as the right to read their personnel files and 

the right to be informed about how their pay is calculated'28 

The EEC provides anorher example of the effects of the political-legal system on 

HRM. The EEC's Community Charter of December 9,1989, provides for the funda' 

mental social rights of workers. These rights include freedom of movement, freedom to 

choose one's occupation and be fairly compensated, guarantee of social protection via 

Social Security benefits, freedom of association and collective bargaining, equal treat' 

ment for men and women, and a safe and healthful work environment' among others.

1uer,ue6euey1 af,.lnoseg ueuinH ur scrdol lettreds s Iatvd a99 

" "*l1r-;:, 

!' '. 

seulunol lereôs 

ur uorlesuedr.uo3 

,{pnog ssorg a6e.reny 

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t"ris;*6s slLusaislx 

eqt ur tuorulselul s€.4\ lt 'rerpeg 'uottou;ord E uI llnsal sLe.rnp rou PIP lertdec uBunq 

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dolenapo,^]runuoddossarsr""u+Jl'ff 

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--Ll 

COMPETING THROUGH GLOBALIZATION 

WWk ?&*Mm*n Wtxnkwye*$q &**s K*px*f 

While American autoworkers 

may negotiate over pay and benefits, 

they probably cannot even 

begin to understand the "plight" 

of Volkwagen's workers at its 

plant in Wolfsberg, Germany. 

ln 1994, while facing an 

economic downturn that made 

20,000 employees redundant, 

rather than lay off those employees, 

WV decided to shorten 

the workweek instead. By cutting 

the workweek 20 percent, 

they were able to cut down on 

the cost of building a car. Howeve1 

as the economy came 

back and VW produceo more 

cars, the 2B.B-hour workweek 

remained. The 2B.B hours compared 

quite favorably to General 

Motors' 40-hour workweek and 

the 35-hour standard at other 

German automakers. 

However, as global competition 

heats up and new carmakers 

are making more inroads into the 

German market, WV had to ask 

its employees to increase the 

number of hours worked to 33 

for the same weekly paycheck. 

While this will still be the shortest 

workweek in the industry 

workers are not pleased. Ronald 

Wachendorf, a 50-year-old 

mechanic, states "We all knew 

something like this would come. 

The general mood among my 

colleagues is not good." 

Before you begin to feel too 

sorry for them, you should also realize 

that not only do these work- 

ers have short workweeks, but 

they are also among the highest 

paid in the industry. In a country 

that has the highest paid autoworkers 

at an average of $44 per 

chart provides a good example of the different hourly labor costs for manufacturing 

jobs in various countries. 

An economic system also affects HRM directly through its taxes on compensarion 

packages. Thus the differential labor costs shown in Figure 15.3 do not always reflect the 

actual take-home pay of employees. Socialist systems are characterized by tax systems 

that redistribute wealth by taking a higher percentage of a person's income as she moves 

up the economic ladder. Capitalist systems attempt to reward individuals for their efforts 

by allowing them to keep more of their eamings. Companies that do business in other 

countries have to present compensation packages to expatriate managers that are competitive 

in take-home, rather than gross, pay. HRM responses to these issues affecting 

expatriate managers will be discussed in more detail later in this chapter. 

These di{ferences in economies can have a profound impact on pay systems, particularly 

among global companies seeking to develop an international compensation and 

reward system that maintains cost controls while enabling local operations ro compete 

in the war for talent. One recent study examining how compensation managers 

design these systems indicates that they look at a number of factors including the 

global firm strategy, the local regulatory/political context, institurions and stakeholders, 

Iocal markets, and national culture. While they try to learn from the best practices 

that exist globally, they balance these approaches with the constraints imposed 

by the local environment.3o However, not just the hourly labor costs, but also the total 

cost of employees, affect decisions about where to locate workers. The "Competing 

through Globalization" box describes the challenges that Volkswagen faces in trying 

to make its German workforce competitive from a cosr perspecrlve. 

hour, VW's pay is set at $69 per 

hour. This compares even more 

favorably to the $34 per hour in 

the United States. This lack of empathy 

spills over to others around 

the Wolfsberg area. Carmen 

Stumpf, a bartender at a local 

watering hole, gets to hear the 

workers complain about their loss 

of privilege. "They don't see their 

situation in relation to others," 

she says. Rolf Schnellecke, Wolfsberg's 

mayori agrees, saying "lt 

was not a very just situation" that 

Vol kswagen em ployees "worked 

four days a week and still wound 

up getting more money" than 

"normal people" in the town. 

SOURCE: S. Wolf and A. Schoenfeld, 

"VW's 2B-Hour Work Week Goes Kaput 

in Wolfsberg," The Wall Street Journal, 

January 5, 2007 . http://online.wsj.com/ 

article/SB1 1 67 9 47 409 42867459.htm l. 

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Levels of Global Participation 

Domestic lnternational Multinational 

Parent 

country 

Host 

countries 

Corporate 

headquarters 


or service in a quantity that meets the needs of a small market niche. This requires 

recruiting, hiring, training, and compensating a number of individuals who will be 

involved in the production process, and these individuals are usually drawn from 

the local labor market. The focus of the selection and training programs is often on the 

employees' technical competence to perform job-related duties and to some extent on 

interpersonal skills. In addition, because the company is usually involved in only one 

labor market, determining the market rate of pay for various jobs is relatively easy. 

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in different parts of the country to reduce the costs of transporting the product 

over large distances. In deciding where to locate these facilities, the owner must consider 

the attracriveness of the local labor markets. Various parts of the country may 

have different cultures that make those areas more or less attractive according to the 

work ethics of the potential employees. Similarly, the human capital in the different 

areas may vary gready because of differences in educational systems. Finally, local pay 

rates may differ. It is for these reasons that the U.S. economy in the past 10 years has 

experienced a movement of iobs from northern states, which are characterized by 

strong unions and high labor costs, to the Sunbelt states, which have lower labor costs 

and are less unionized. 

Incidentally, even domestic companies face problems with cultural diversity. In the 

United States, for example, the representation of women and minorities is increasing 

within the workforce. These groups come to the workplace with worldviews that differ 

from those of the traditional white male. Thus we are seeing more and more emphasis 

on developing systems for managing cultural diversity within single'country 

organizations, even though the diversity might be on a somewhat smaller scale than 

the diversity of cultures across national boundaries.3s 

It is important to note that companies functioning at the domestic level face an en' 

vironment with very similar cultural, human capital, political-legal, and economic situ' 

ations, although some variation might be observed across states and geographic areas. 

lnternational 

As more competitors enter the domestic market, companies face the possibility of losing 

market share; thus they often seek other markets for their products. This usually 

Global 

Host-Country 

Nationals {HCNs} 

Employees who 

were born and 

raised in the host, 

not the parent, 

country. 

Third-Country 

Nationals ITCNs) 

Employees born in a 

country other than 

the parent or host 

country.

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COMPETINGTHROUGH 

SUSTAINABILITY 

*il** *i*gi:: r:, fl *: i:lrl* 5x :;t;:i;":;l * i iiiq 

Jeff lmmelt and Bob Nardelli oroducts and services. GE has Mr. Scott stated "The generation 

were both considered potential 

successors to Jack Welch when 

he was to retire from GE. 

grown in the wind power part of 

the business as well as pushing 

water ourification and desalina- 

of people I work with-like A.G. 

Lafley (of Procter & Gamble) . . . 

and Jeff lmmelt-feel there is a 

lmmelt got the job and Nardelli tion. And even in the parts of business reason to do this. 

took over as CEO at Home the business that might not Nardelli, on the other hand, 

Depot. In spite of the fact that be as "eco-friendly" he has complained that the corporate 

both delivered reasonably good pushed managers to find ways system is under attack. "l am 

operational results, neither to reduce GEt emissions of very concerned with the future 

company's stock price grew greenhouse gases. 

of business and the capitalistic 

substantially in the six years 

that they have been in charge. 

However, Jeff lmmelt sits 

Mr. lmmelt is not the only 

CEO embracing sustainability. 

Wal-Mart CEO Lee Scott has 

system in this country," he said. 

"somebody has yelled fire in 

the auditorium. lf you stand 

securely at GE while Bob Nardelli surorised a number of observers back, you've got to say that we 

was recently let go. Why? At with his "green" strategy. Under as a country should share a 

least part of the reason was how Scott Wal-Mart has focused on growing concern as it relates to 

they dealt with stakeholders bu i lding energy-efficient stores the capitalist system. The things 

besides the shareholqers. and doing so in a way that mini- that got us to where we are are 

Mr. lmmelt oushed GE into mizes environmental damage under attack." 

an "eco-imagination" strategy. 

This strategy seeks to build 

the internal capability to proto 

the location. In addition, 

Wal-Mart has begun offering a 

number of "green" products 

SOURCE: A. Murray, "Executive's Fatal 

Flaw: Failing to Understand the New 

Demands on CEO's," TheWall Street 

.rride environmental ly friendly such as low-wattage light bulbs. Journal, January 4,2007 , p. 41. 

Multinational companies now employ many "inpat1i3gss"-112nagers from di{ferent 

countries who become part of the corporate headquarters staff. This creates a need to integrate 

managers from different cultures into the culture of the parent company. In addition, 

multinational companies now take more expatriates from countries other than the 

parent country and place them in facilities of other countries. For example, a manager 

from Scotland, working for a U.S. company, might be assigned to run an operation in 

South Africa. This practice accentuates the need for cross-cultural training to provide 

managerial skills for inreraction with individuals from different cultures. The "Compet. 

ing through Sustainability" box describes how a number of U.S. CEOs are beginning to 

embrace a "green" strategy that looks more like policies favored by European CEOs' 

tl*bal 

Many researchers now propose a fourth level of integration: global organizations. Global 

organizations compete on state-of-the-art, top-quality products and services and do so 

with the lowest cctsts possible. \Thereas multinational companies attempt to develop 

identical products distributed worldwide, global companies increasingly emphasize flex' 

ibility and mass customization of products to meet the needs of particular clients. Multinational 

companies are usually driven to locate facilities in a country as a means of 

reaching that country's market or lowering production costs, and the company must 

deal with the differences across the countries. Global firms, on the other hand, choose 

. : 

673

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"f

cHAPTER l5 Manaqinq Human Resources Globallv 675 

recognized over the past few years is the set of problems inherent in selecting, training, 

compensating, and reintegrating expatriate managers. 

According to a recent study by the National Foreign Tlade Council (NFTC), there 

were 250,000 Americans on assignments overseas and that number was expected 

to increase. In addition, the NFTC estimates that the average one-time cost for relocaring 

an expatriate is $60,000.36 The importance to the company's profitability of 

making the right expatriate assignments should not be underestimated. Expatriate 

managers' average compensation package is approximately $250,000,3i and the cost of 

an unsuccessful expatriate assignment (that is, a manager returning early) is approximately 

$100,000.38 The failure rate for expatriate assignments among U.S. firms 

had been estimated at between 15 and 40 percent. However, more recent research 

suggests that the current figure is much lower. Some recent studies of European multinationals 

put the rate at 5 percent for most firms. While the failure rate is generally 

recognized as higher among U.S. multinationals, it is doubtful that the number 

reaches the 15-40 percent range.se 

In the final section of the chapter, we discuss the major issues relevant to the management 

of expatriate managers. These issues cover the selection, training, compensation, 

and reacculturation of expatriates. 

Selection of Expatriate Managers 

One of the major problems in managing expatriate managers is determining which individuals 

in the organization are most capable of handling an assignment in a different 

culture. Expatriate managers must have technical competence in the area of 

operations; otherwise they will be unable to eam the respect of subordinates. However, 

technical competence has been almost the sole variable used in deciding whom 

to send on overseas assignments, despite the fact that multiple skills are necessary for 

successful performance in these assignments.40 

A successful expatriate manager must be sensitive to the countryt cultural norms, 

flexible enough to adapt to those norms, and strong enough to make it through the 

inevitable culture shock. In addition, the manager's family must be similarly capable 

of adapting to the new culture. These adaptive skills have been categorized into three 

dimensions:41 ( 1) the self dimension (the skills that enable a manager to maintain a 

positive self-image and psychological well-being); Q) the relationship dimension (the 

skills required to foster relationships with the host-country nationals); and (3) the 

perception dimension (those skills that enable a manager to accurately perceive and 

evaluate rhe host environment). One study of intemational assignees found that they 

considered the following five factors to be important in descending order of importance: 

family situation, flexibility and adaptability, job knowledge and motivation, 

relational skills, and exffacultural openness.42 Thble 15.3 presents a series of considerations 

and questions to ask potential expatriate managers to assess their ability to 

adapt to a new cultural environment. 

Little evidence suggests that U.S. companies have invested much effort in attempting 

to make correct expatriate selections. One researcher found that only 5 percent of 

the firms surveyed administered any tests to determine the degree to which expatriate 

candidates possessed cross-cultural skills.a3 More recent research reveals that only 35 pel, 

cent of firms choose expatriates from multiple candidates and that those firms emphasize 

only technical job-related experience and skills in making these decisions.aa These 

findings glaringly demonstrate that U.S. organizations need to improve their success 

rate in overseas assignments. As discussed in Chapter 6, the technology for assessing 

individuals'knowledge, skills, and abilities has advanced. The potential for selection 

testing to decrease the failure rate and productivity problems of U.S. expatriate managers

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table 15.3 

Interview Worksheet for International Candidates conc/uded 


Career planning 

. Does the candidate consider the assignment anything other than a temporary overseas trip? 

r ls the move consistent with her progression and that planned by the company? 

. ls his career planning realistic? 

r What is the candidate! basic attitude toward the company? 

. ls there any history or indication of interpersonal problems with this employee? 

Financial 

r Are there any current financial and/or legal considerations that might affect the assignment, such as 

house purchase, children and college expenses, car purchases? 

o Are financial considerations negative factors? Will undue pressures be brought to bear on the employee 

or her family as a result of the assignment? 

SOURCE: Reprinted with permission from Multinational People Management, pp. 55-57, by D. M. Noer. Copyright O '1 

989 by 

the Bureau of National Affairs, Inc., Washington, DC 20037 . 

seems promising. For instance, recent research has examined the "Big Five" personality 

dimensions as predictors of expatriate success (remember these from Chapter 6). For 

instance, one study distinguished between exparrlare success as measured by not 

terminating the assignment and success as measured by supervisory evaluations of the 

expatriate. The researcher found that agreeableness, emotional stability, and extraversion 

were negatively related to the desire to rerminate the assignment (i.e., they 

wanted to stay on the assignment longer), and conscientiousness was positively related 

to supervisory evaluations of the expatriate.4s 

A final issue with regard to expatriate selection is the use of women in expatriate 

assignments. For a long time U.S. firms believed that women would not be successful 

managers in countries where women have not traditionally been promoted to manage. 

ment positions (such as in Japan and other Asian countries). However, recent evi. 

dence indicates that this is not true. Robin Abrams, an expatriate manager for Apple 

Computer's Hong Kong office, states that nobody cares whether "you are wearing 

trousers or a skirt if you have demonstrated core competencies." In fact, some women 

believe that the novelty of their presence among a group of men increases their credibility 

with locals. In fact, some research suggests that male and female exparriares can 

perform equally well in international assignments, regardless of the country's cultural 

predispositions toward women in management. Howeveq female expatriates self-rate 

their adjustment lower in countries that have few women in the workforce.46 Also research 

has shown that female expatriates were perceived as being effective regardless 

of the cultural toughness of the host country.4T And the fact is that female expatriates 

feel more strongly than their supervisors that prejudice does not limit women's ability 

to be successful.a8 The "Compering through Technology" box describes how IBM le. 

verages technology to optimally manage its global workforce. 

Training and Eevelopment of ENpatriates 

Once an expatriate manager has been selected, it is necessary to prepare that manager 

for the upcoming assignment. Because these individuals already have job-related skills, 

some firms have focused development efforts on cross-cultural training. A review of the 

cross-cultural training literature found support for the belief that cross-cultural training 

has an impact on effectiveness.49 However, in spite of this, cross-cultural training is

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e;e rerlt Jsoqt Sutzn-uturu ellq^\ scllslralf,E 

-rErlc e^rtreJJe eqt otEntuelre ot rol^€qeq r1ar1l $1potu utzc sre8euetu 'sseuerearreTles 

lerntln) ateJncf,B uB qtllN 'sleuolteu tsoq eqt [q pa.trecred sr tt se ,{pelnct]red 'punor8 

-{l€q 

I€Jntlnc uâo rleqt tnoge Jealf, aq tsnul selelJledxe 'lsrtg 't{ltltltsuas leJnllnf, 

,1o slcedse .,rre; e Surzrsuqdure sll€tue srga ,r'.{lererrdo.rdde 

e^€qeq uer solellledxe 

teqt os ernt]nc s,.{rtunoc tsoq eqt Jo uorlercerdde uB eteafc ol tdruette tsoru }Bqt .t\ou>l 

ot luelrodrut sI lI 'A\ou ro; 'renamog '1 relderl3 uI PessnJSIP 

era.tt surelfio:d eserp Eut 

-pru8ar sll€tap eq1 2suer8ord Suruterl leJnllnc-ssoJr 

uI Pezlseqdrue 

sr dllcexe reg16 

Og'salBlJl€dxe 

ol uollerBderd lernllnc'ssorc ou PerelJo 

stuepuodser aqt Jo tuef,red g7 l,peau ',{a,uns E66I euo ol Eutproccy 

'lESraAIun ,{1preq

table 15.4 

lnternational Body Language 

Argentina lf the waiter approaches pointing to the side of his head and making a spinning gesture with 

their finger, don't think they've lost it-they're trying to say you have a phone call. 

Bangladesh Bursting to go to the toilet? Hold it. lt is considered very rude to excuse yourself from the table 

to use the bathroom. 

Bolivia Don't make "the sign of the fig" (thumb protruding between index and middle finger), historically 

a sign that you couldn't care less-it is very insulting. 

Bulgaria Bulgarians nod the head up and down to mean no, not yes. To say yes, a Bulgarian nods the 

head back and forth. 

Lnrna In Eastern culture, silence really can be golden. So don't panic if long periods of siience form part 

of your meeting with Chinese clients. lt simply means they are considering your proposal carefully. 

Egypt As across the Arab world the left hand is unclean, use your right to accept business cards and to 

greet someone. Use only your right hand for eating. 

Fiji To show respect to your Fijian hosts when addressing them, stand with your arms folded 

behind your back. 

France The French don't like strong handshakes, preferring a short, light grip or air kissing. If your 

French colleague is seen to be playing an imaginary flute, however, it means he thinks you are 

not being truthful. 

Germany When Germans meet across a large conference table and it is awkward to reach over and 

shake hands, they will instead rap their knuckles lightly on the table by way of a greeting. 

Beware of making the okay sign to Greek colleagues as it signifies bodily orifices. A safer bet is 

the thumbs-up sign. The thumbs-down, however, is the kind of gesture reserved for when a 

Greek motorist cuts you off on the highway. 

Hong Kong When trying to attract someone's attention, don't use your index finger with palm extended 

upward. This is how the Cantonese call their dogs. 

India Beware of whistling in public-it is the height of rudeness here. 

Japan Japan is a real mine{ield for Western businesspeople, but one that always gets to them is the 

way the Japanese heartily slurp their noodles at lunch. Far from being rude, it actually shows 

appreciation of the food in Japanese culture. 

Jordan No matter how hungry you are, it is customary to refuse seconds from your host twice before 

finally accepting a third time. 

Lebanon Itchy eyebrow? Don't scratch it. Licking your little finger and brushing it across your eyebrow 

is provocative. 

Malaysia lf you find a Malaysian standing with hands on hips before you, you've clearly said something 

wrong. lt means he's livio. 

Mexico Mexicans are very tactile and often perform a \izarre handshake whereby, after pressing 

togetherthe palms, they will slide their hands upward to grasp each other's thumbs. 

Netherlands The Dutch may seem open-minded, but if Dutch people tap the underside of their elbow, it 

means they think you're unreliable. 

)a kistan The overt display of a closed fist is an incitement to war. 

ohilippines The "Roger Moore" is a common greeting here-a quick flash of the eyebrows supersedes the 

need for handshakes. 

?;ssia The Russians are highly tactile meet and greeters, with bear hugs and kisses direct on tle I ps 

commonplace. Don'ttake this habitto nearby Uzbekistan, however. They'd probably shoot vo- 

Saudi Arabia If a Saudi man takes another's hand on the street, it's a sign of mutual respect. 

Sa,.noa When your new Samoan host offers you a cup of the traditional drink, kava, make sure to 

deliberately spill a few drops on the ground before taking yourfirst sip. 

=;rkey 

Be careful not to lean back on your chair and point the sole of your foot at anyone in a meetinq 

in lstanbul. Pointing with the underside of the foot is highly insulting. 

: - 

IES: http://www.busjnesstravelerusa.com/articles.php?articlelD:490 Business Traveler Center; R. Axte , Ges:-'=.. 

-.:oosof '.': 

BodyLanguageAroundtheWorld, (NewYork: JohnWileyandSons, 1991);P. Harrisand R. Mora- .-r 

'= -'--.- 

Differences,3rd ed. (Houston, TX: Gulf Publishing Company, 1991); R. Linowes, "The Japanese Ma.eg:'. 

', 

tre United States: Understandirg tl'e American-Japanese C.;lrural Divide," Academy of Ma ao ^ - : . . 

':o3), 

p.26; D. Doke, "Perfect Strangers," HR Magazine, December 2004, pp.62-68.

lueule6eueyl o)rnosaE ueLunH ut srtdol letlads s IuVd oa9 

6urleorunuluo3 

s'sr olqur 

sreure€ 

e6en6ue1 sso.rce 

,.'[l]unol erlt tuou ,(PJ]IAUISIP,, osle sel\ 

lueduroc arp (pauodep eteutedxa eqt se^\ Lluo tou lsruotsnc [q pera.tcrcstp se,tl Lpuerq 

eq1 .rere$ jo ^lunor uIIsnJ eqt otul .(puerq jo soproq o.ul Sulrq ol Peldruelle 

oq.ro, eleuledxe eqt se qcns 'se1Btslru l1lsoc pro,te dleq osle uec 1I ']uoluuoJlluo >lJo.^d 

.r\au er{l ol uolllsueJl s,aleuledxe uB ssee sd1et1 Sururell leJnllnc-ssoJJ 

eAIlf,elJA 

.sleuleg e8en8uel ssorce Suuerrunururof, ro; sdrr euros sre#o g'gl elqeJ 'tslxe slalrreq 

e8en8uel uer{,!\ sJerllo qtr^\ eteJrunururoJ ol pouleJt aq tsnlu sreE€ueul eteuledxe snql 

[pueng eBun8uel [r]unoc-tuated erp leeds sleuotreu esaql oP tuoPles 'enrl eg lqblul 

uoudurnsse srqt qEnoqtly 

'e8en8uel s,^flunoJ-luared aql leads 11e sluuolleu lr]unor 

.tsoq aqr terlt eunsse .{ldurrs seruedruoc tsoul 'ralel\o11 'Surutert aBen8uel epr.nord,ue; e 

pue (,Lttunor tsoq eqt;o e8en8uel erp leeds oq.u selelrledxe asn ol ldruellc slurg eruos 

.eJntlnJ ,lAeu eql ut ,(1ete:ncce eteclunruuloc ol uleel lsntu sslel-lledxa 'd11eutg 

lel ]ou ro puelsropun {eqt req+eqnn 1se ,{1du.rrs }ou oc 'no{ o1 >lf,eq lerla}eul 

eql ]o 6utpuelsrePun lloLl] +eedei sen6eellof aneH 'uorsuaqetdwoc 6uqcaq3 . 

'PuelsraPun 

lou 

op {eqf leql eulnsse :Pue}srePun Ieqr reql etunsse 1sn[ 1ou oQ'6utpue$)oPun o 

uo!suaqerduoJ 

'r{1uelrurs 

lou 'ofuela1ltP euJnsse 

'elnsun il'secuoJaJlQ . 

'asn 

e6en6uel-puof,es 1o u6rs e ^llensn sr 1r 1ecue61;;e1u1 

jo )rel qllM uorleounuordsrur pue jeLuu]ero rood elenbe ]ou oC 'ecue641e1u1 

. 

'6ur1e1sue.r1.ro e6en6ue; en rleuuou eql u1 ,{1mo1s etou 6urlurql rnf {;qeqold sl uoslad 

Jeqlo eqj otuolrs otl] llt' ol ur dLun[ 1ou oC ']reM 'etruolls e sr o.lotl] ueL{M 'ef,ue/,S . 

uollnqlruv 

'uotleluase:d 

leq.ren .rno,{ }o serreLuLun.s 

'serreluurns 

. 

Alluenber+ 

ll"llil 1.^. 

ejou 

lueH esned 

, 

'sesned . 

'elqrssod se seLueL{} {uer.u se 

'uoqerlsuoLueQ 

}no }f,V . 

'sprom 

]o 6urueetu aql azlseqdura o1 sernlse6 puel{ pue lel3e} erolu esn 'sarnlsa9 o 

'soPrls 

Pue'selqel'sqder6 

'se"rnprd se qJns 

'a;qrssod se sluaLualelsei lensl^ {ueuu se esn 'sJuau)alelsa PnstA . 

lolêqoq leqraûoN 

'sq;an entssed pro^V 

'sgra^ oAtJ)l o 

'selualues 6uo1 

'punodLuof, pto^V'seJualuos aldu-lt5 . 

'ldef,uol eues 

oql uleldxe o1 sproM luereg!p 6ursn eepr ]ueuodrur qcee leedey 'uorlrladay . 

'suorsse.rdxe 

lernbo;;or esn ]ou oC 'proM qfee elelfunu3 qreads Mols leal) . 

Jolêqaq leqlan 

'sre)eeds erlnou sseJlequlo lou oc 'luaujetjoy'ureu i 

'sluedllrued o^tssed pue ;eur6.reu lno MelP r{1tre1dx3 

'po 5wnetq . 

'sluedt3lUed a6enOue; e^lleuuou 

,{q 6urleeds of,lorr-urer pue o6elnolua ^lleqlenuou pue r{;;eqlen 'tuawo6ernoJu1 

. 

uo!le^llow 

'uer6old 

ten6 

-urlouoLil e ut lensn ueLll elnpoul qtrea loj eLutl ejoul atrelollv 'eweJ] aLul Je6uo1 . 

'selnpour 

Jelleuls olul lelroleul eql oPl^lC 'salnpoLu 

ilews . 

'6urpneqxe st uotsueqejdutol aoenouel-puotres s)eolq luenbell eroul o)el 's4eatg . 

u6gsaq 

'no^ 

o1 PuelslePun ,{eql leqm ute;dxe ueq} 

g lzz-ot L-ooB xel' u]otr'$q6r.r uosuroql MMM : 6u I ur eel 

uosuroqfjouorsr^rpe'urelseM-qlnos,ouotssrurradqllmpeluudeu'f66t6lL16u,{do3 gB-tB dd 

'relpy {cuep Iq pa pu7 iotêqa1 puo4ezue6tg }o suotsuaLut1 Puo+eualul r'r"rorl :1f,!nOS

eornpensation of €xPatriates 

Goods 

and 

servrces 

Reserve 

country 

costs 

Goods 

and 

services 

Reserve 

Host-country 

costs paid by 

company and 

from salary 

ffit 

ffi 

Goods 

and 

services 

Reserve 

Home-countrY 

equivalent 

purchasing 

power 

Ad.ditional costs 

r pald Dy company 

SOURCE: C. Reynolds, "Compensation of Overseas Personnel," in J' J' Famularo' ed ' 

Handbook of Human Resource Administration, 2nd ed.,1986. Copyright @ 1986 The 

McGraw-Hill Companies, Inc. Reprinted with permission' 

cHAPTER l5 Managing Human Resources Globally 6al 

One of the more troublesome aspects of managing expatriates is determining the 

compensation package. As previously discussed, these packages average $250,000, 

but it is ,-r"."rrury to the exact breakdown of these packages. Most use 

"*u*ir-r. 

a balance sheet approach to determine the total package level' This approach 

entails developing a total compensation package that equalizes the purchasing 

power of the e*p"iriate managei wlth that of employees in similar positions in the 

irome country provides incentives to offset the inconveniences incurred in 

"r-rd 

the location. Purchasing power includes all of the expenses associated with the ex' 

patriate assignment. E*p"t-tr"r include goods and services (food, personal care, 

.lothi.rg, recreation, ur-td ,rnnrportation), housing (for a principal residence)' 

incomela*es (paid ro federal and local governments), reserve (savings, payments 

for benefits, pension contributions), ar-rd shipment and storage (costs associated 

with moving storing personal belongings). A typical balance sheet is shown 

".,d/o. 

in Figure 15.5. 

A]yo1r can see from this figure, the employee starts with a set of costs for taxes, 

housing, goods and services, and reserve. However, in the host country' these costs are 

significanlly higher. Thus the company must make up the difference between costs in 

the home ihor" in the host country, and then provide a premium and/or incen' 

"nd 

tive for the employee to go through the trouble of living in a different environment' 

.Goods 

and 

service! 

Reserve 

country 

salary 

ffi 

ffi 

&gxr* 35.$ 

The Balance Sheet 

for Determining 

Expatriate 

Compensation 

1 I 

iI 

tl 

r l 

l l: 

:

lueLueoeuel^ etrinoseu ueunH ur sf,ldol lelleds S Illvd A9 

9'5r alqBr 

{e4 eseg 

.^ â^.,,^^,^, 

j9 euE+ueJrsd 

e se etrueMollv Jo 

]unourv eOero^V 

drqspreg 

uorlrsoJ 

: 

uollelnp:l 

sef,truos pue spoog 

(eseqcrndl 6ursno;1 

a 

(6urnr1 1o +sof) 

luaurebeueyl ef,rnosau ueurnH rorL Aler:o5 1o uotsstured qllM petrn;aol:eefu:rt:1"."4?rtJfi'j*:.:'l 

ueurnH ro',i1erco5 ,iq L66l @ fq6u,{do3 reurnl-p1ere6z}ll 'B ^q auze5eyllUH uroll :llunOS 

Jerlto tE tnc ded € (elurt eqt jo auos esreJ € lre1es pere;;o uB e]Etu Aeru satrlunoc uee^q 

-oq satBl e8uurlf,xe Suttentcnlg 'Jeêlaoq 'Ielletu eldurls E lou sI .4.re1es eseq egl bul 

-ururJotacl .fue1es eseq aqt st alor{t ,tsrrg .stuauodruoc rno;. a.teq seSBiJBd ,(ed 1ero1 

'ABd eseq eq] aôqB lsoJ uoll 

-esueduloc uI esearrul luerred f II B ol lunoluB sllJeueq Paulqtuoc aseql (aes eÂ sV 

.JlelledxJ ue loj tsof uBl suo-ppe rseq) qlnlu noq rsnf So eapt ue saprôld 9't I JlqsJ 

tueserd rleqt Jo ]eqt puoêq ulnlulerd .fue1es e PeJalo uelo ere solellledxA 'drlunor 

]soq eql ul qol aq] roj satBJ telrBlu Surle^tard eql uo PesBq 

eq Leru lt ro (^rlunoc 

luarBd eqt ul led elqereduoc uo pesBq eq feu lre1es aseg eq] '.uolllpPe uI 'soullt 

e ,eldruexe to{ 'serJlunoc xel-q8rq ur sruats^s uoltexBl lueJe;;lP (selJJunof, }o esnE3 

-eq ^JesseJeu ere deql 'tuauoduoc 

PuoJes B eJE Sacuel\olle uolfBzll€nbe xel 

'lueruu8tsse elBlJledxa eql ldef,ce o] lueulofnPul uE se AJeles 

eqt ur penJJf,E sexBl aql jo IIe sÊd ueql 'rtJlunoJ sruoll eql uI PIEd eq o] xBl Jo 

tunoulB oqf sploqqflÂ ûedulol er{l 'sueld uoll€zllenbe xel lsoru lePun ts'sree^ 

ueles ot eArJ JeAo sexet ur uorllltu I$ rsourle Lueduoc B lsor Plnoc (luecrad B'01 Jo 

etBJ xet IBuISr€ru uInuIIXBuI E qllllt) urnr8leg ul 000'00I $ Sutulee elllncexa Jolues 

Jo tso1 .srualqord uoltesueduloc lEuoItIPpE slueseJd 'slr;eueq 'luauodruoc Prlqf V 

'Alluno) 

lsoq 

req16 2fuiunor aurorl req uI uolsued Suttstxe er{l ol elnqpluos ol Pa.tlolle oq IBnPI^1P 

-q erp plnorls ro ,ADunoc lsoq oqr ur uorsued,Âeu € eAEq IenPI^lPul eql saoP ' I]unof, 

]ualellp B ot peôui sr selets petrun arp ur ueld uolsued e ol SuttnqFluoc alBlJledxe 

uB 

(elduBxe 

Jr roC 'sllJaueq eqr jo [rrlqerrodsuErl eq] qll^\ op ol e^€q srualgord eql 

'suolssassod 

leuosred jo e8eJols Jo/Pu€ Surddrqs pue 'sesuedxa 8ut.tt1 L-rerodruel 

,uorlecol 1$eu ar{l uroJj pue ol uorlelJodsu€Jl Eulpnlcul '^Jlunof, A\eu B ol eAoru lenl 

-cE orlt 8ut>1eut Jo sesuedxe eql IIB relor secue.t\olle uollesoleU 'sloot{)s Surleeds 

.qsr18ug e]€ArJd ur uerpllr{J lreql Surc€ld Jo esuedxa eq} JoJ selErJlBdxo esrnqluler 

sef,u€1\\ollB uolt€cnpg 'PJBPuBls 8urnr1 .{rlunoJ-euoq eIrBS eql UIB}uIBuI u€c elB 

-utedxe eqr teqt ernsua sef,u€,4 olle Sursnog 'sertlJ leuolt€uretul re8rel agl Jo eulos 

Suorue 3ut.N1 ;o lsoc ur secuerelJ.lp eqt s^\oqs l'9I alqBl 'ecuBJsut loc 'Arlunoc 

tuered eqr pue fr]unoc ]soq eqt uaeÂtaq sertrssaJeu dep-ot-lêp uo sernltPued 

-xe ur secuele#lp eqf tas#o leql slueulÊd ele seJue,/r\o11e 8ut,tt11o-lsoC 'eAIlJEJll€ 

-un ssel tueutu8lsse etelJtBdxe eqr e{eru o} PeJeJJo 

uaryo eI€ seJue^rol]B 

',(11eutg 

'a^lleurelle slql ^rollB rou PIP sueld qrleeq 

eqt (rela.t\oH '[r]unoc fsoq eqf uI euoP rl aÊq o] ueql rerller PeuloJred 

eJnPef,old 

B eêq ol setets petlun eqr ot Û eaLoldrue el{r eêq ol ssel -(puec51u31s lsoc }q8lru 

tl orerl^\ suortentls uI petlnser elg€lIB^B sueld erec r{lleaq lueJeJ}lP aql 'ûedulo:) 

euo ur ,eldurexe roC ie8ereôJ er€r rpleeq lenbe e^teq seeLoldrue et€Irledxe lBq] erns 

-u3 ûedruoc eqt seop ,\\oH isetets pelrun eqt ur pet€rol surJtsAs aIEc l{rleeq lnoqe 

Lt 

LL 

ZZ 

VZ 

%8t,

1 Tokyo, Japan 

2 London 

9 Honq Konq 

13 Nei York-Clty 

14 Dublin 

20 slaney, - . 

30 Shanqhai 

3a Singa-pore 

40 Glasqow 

+7 aii'r:ningham 

134.7 

t zo,s 

109.5 

100,0 

100.0 

952 

90.4 

88.0 

87.5 

'95.g 


Note: Base city New York : 100. 

SOURCE: Mercer Human Resource Consulting, "Worldwide Cost of Living-City Rankings, 2005," 

Global Cost of Living SurveY,2005. 

Figure 15.6 illustrates a typical summary sheet for an expatriate manager's compen' 

sation package. 

The cost o? a U.S. expatriate working in another country is approximately three to 

four times that of a comparable U.S. employee.ss ln addition, "about 38 percent of 

multinational companiei ,.rrn"yed by KPMG LLP for its 2006 Global Assignment 

Policies and Practices say overseas assignment programs are 'mofe generous than they 

need to be.' "56 These two facts combined have put pressure on global organizations to 

rethink their tax equalization strategy and expatriate packages' 

Reaccultu ration of [xPatriates 

A final issue of importance to managing expatriates is dealing with the reaccultura' 

tion process *h"., ih" managers reenter their home country' Reentry is no simple feat' 

Cultrrre shock takes place in reverse. The individual has changed, the company has 

changed, and the .rrli,rr" has changed while the expatriate was overseas. According to 

o.r. ,1rr..", 60 to 70 percent of expatriates did not know what their position would be 

upon their rerum, arrd 46pe..er-riend.d up with jobs that gave them reduced auton' 

o-y urrd authoriiy.5T T\I/er-tty percent of workers want to leave the company when 

they return from an overseas assignment, and this presents potentially serious morale 

and productivity problems.5s In fact, the most fecent estimates afe that 25 petcent ot 

e*pat.iate -"rrug.r, leave the company within one year of returning from their expa' 

triat. ussignm"nts.5e If these repatriates leave, the company has virtually no way to 

recoup its substantial investment in human capital'60 

Companies are increasingly making efforts to help expatriates through reaccul' 

ruratio;. Two characteristiJs help inlhis transition process: communication and 

validation.6\ Communication rcferc to the extent to which the expatriate receives 

information and recognizes changes while abroad. The closer the contact with the 

home organization ,ihil" ubtoJ' the more proactive, effective, and satisfied 

the expaJriate will be upon reentry. Validation refers to the amount of recognition 

received by the expatriate upon return home. Expatriates who receive tecognition 

from their p."r, rheir btsses for their foreign work and their future potential 

"r,d 

table 15.7 

Global Cost of 

Living Survey: 

Ranking of Selected 

Cities among the 

Top 50 International 

Cities, 2005

lueura6eue6l elrnosou ueL-unH ur scrdol ;erced5 s ruvd va9 

*'{ i r!'!iri}i|J 

urrol otrueMollv 

lueruuOrssy 

leuorleurelu I 

oureN 

ooc'H ul|or 

luauru6gsse'o uollero'l 

arodeburs 

eseq owoH 

sexel'uolsnoH 

:e6ueq3 Jol uoseau 

rtre;es eseq {qluont 

a)ue/vrolle lsor 6u411 

urngurald ot!^Jos u6ga,ro3 

otue^ olle eorv 

f.re;es {qluoru ssorg 

uolpnpap Bupnog 

xe1 ;er;leqtoddg 

reqlo 

fueges flqluou leN 

{q pa.reda.r4 

serJnoseu ueunH'luaplsaJd o)!A 

'ou'dur3 

rtu 

oleP a^!pe#3 

t00z raqorro L 

Il l/dv' roS/'S"lS lebeuel^ 

€lur 

luauu6rssy leuolleurelul 

epo) xel oPor vll 

zoz z0z 

00'000's$ 

00't6zx$ 

00'0s/ $ 

00't?0'l$ 

00009 $ 

00'0/9 $ 

00'L/6's$ 

suorlBlradxe )Jo.&\uou PUE (sPrBPuEts ecuEurJojrad Pue eurnlo^ Jo slurel ur sPuEulep 

pue stur€rtsuoc) suonetradxa qof esoq,r\ s;e8eueru ]Eqt puno; [pnrs srql 'ecueurroJ 

-rad qot pue tuetulsnlpe uorteuleder Sururruretep u] lueruu8rsse ateutedxe eqt tnoqB 

suortetcedxe s,reBeueur eterrtedxe uE jo elor eqt petou [p.ls .{creaser euo tileur4 

'popnlJuor e^Bq stueruu8rsse legt Jele sete 

-utBdxe esol ot tue.\\ tou op dlururrer sru.rr; '.(uedruor eqt dleq 11.,1t teqt ecuerredxa 

1eqo13 Surpr.Lord te parur€ dllensn 'seeLoldrua ateutedxa ur oleur srurr; ter{t tueru 

-tsonur snopueuleu eqt ue^1C.,'doo1 Jqr Jo tno,. Jre,r ,(eqr Jl se peleelt Jre oq,r\ 

esor{t qtr^\ pereduroc Lrtuear qtr^\ selqnort reA\+ e,leg LuedruoJ erll ot uortnqrrtuoc 

Pto 

-0- 

::'


(living and housing conditions) were met exhlbited a greater degree of repatriation 

udl.rrtl.rrt and higher levels of job performance.6z Monsanto has an extensive repatriation 

program tf,at begins long before the expatriate.Ieturns. The program entails 

provicling eitensirre information regarding the potential culture shock of repatriation 

ur-rd irlfo.-urion on how family members, friends, and the office environment might 

have changed. Then, a few months after returning, expatriate managers hold "debriefing" 

sessiJns with several colleagues to help work through dlfficulties' Monsanto 

b"ii.rr", that this program provides them with a source of competitive advantage in 

international assignments.6l 

In sum, a varieiy of HR practices can support effective expatriation. In general, the 

selection system must rigoiously assess potential expatriates' skills and personalities 

and even fo.rl, or-, the candidate's spouse. Tiaining should be conducted prior to 

and during the expatriate assignment, and the assignment itself should be viewed as 

a career dJrr"lop-.nt experience. Effective reward systems must gobeyond salary and 

benefits, and while keeping the employee "whole" and even offering a monetary 

premium, should also provide access to career development and learning opportuni' 

iies. Finaliy, serious efforts should be made to manage the repatriation process'64 

A summary of the key points is provided in Thble 15.8' 

Staffing and Selection 

. Corimunicate the value of international assignments for the company's global 

misslon. 

. Ensure that those with the highest potential move internationally. 

r provide short-term assignments to increase the pool of employees with international 

experience. 

. Recruit emplovees who have lived or who were educated abroad' 

rr"iniig and L"r"", DeveloPment 

. Makl international assignment planning a part of the career development 

process. 

. Encourage early international experience. 

o Create learning opportunities during the assignment' 

. Use international assignments as a leadership development tool' 

Performance Appraisal and Compensation 

r Differentiate performance management based on expatriate roles. 

. Align incentives with expatriation objectives. 

. Tailor benefits to the expatriate's needs. 

. Focus on equality of opportunities, not cash' 

. Emphasize rewarding careers rather than short-term outcomes' 

Expatriation and Repatriation Activities 

. 'lnuolu" 

the family in the orientation program at the beginning and the end of 

the assignment. 

r Establish mentor relationships between expatriates and executives from the 

home location. 

. Provide support for dual careers. 

. Secure opportunities for the returning manager to use knowledge and skills 

learned while on the international assignment. 

SOURCE: p Evans, V Pucik, and J. Barsoux 

,The Global Challenge: Frameworkfor International 

Human Resource Management,2OO2. Copyright O 2002 The McGraw-Hill Companies, Inc. 

Reorinted with Permission. 

table 15.8 

Human Resource 

Practices That 

Support Effective 

Expatriation

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systems, and that they understand how these factors come 

into play in the various levels of global participarion. 

Finally, it requires that they be adept at developing HRM 

svstems that maximize the effectiveness of all human 

InJiviJuali"m-collectivism, 662 

Power distance, 662 

Uncertainty avoidance, 663 

Masculinity-femininity 

dirnension,663 

Long-term-short-term 

orientation, 663 

P".o-r .^, '-tr.. A7O 

{} nrscussroN 

QunsrroNs 

rJ.-^. ^.-...^.-.. r?n 

r ruDr LUurrrr yr u I v 

CHAPTER l5 Manaqing Human Resources Globally 6a7 

Third country,6T0 

Expatriate, 670 

Parent-country nationals 

(PCNs),670 

Host-country nationals 

(HCNs),671 

1. 'What current trends and/or events (besides those mentioned 

at the outset of the chapter) are responsible for 

the increased internationalization of the marketpLacel 

According to Hofstede (in Table 15.2), the Unired 

States is low on power distance, high on individuality, 

high on masculinity, low on uncertainty avoidance, 

and 1ow on long-term orientation. Russia, orr 

the other hand, is high on power distance, moderare 

on individualiry, iow on masculinity, high on Lrncertainty 

avoidance, and low on long-term orientation. 

Many U.S. managers are transplanting their own 

HRM practices into Russia whlle companies seek to 

develop operations there. How acceptable and effective 

do you rhink the follor.ving pracrices wili be and 

why? (a) E,xtensive assessments of individual abiliries 

for selection? (b) Indivldually based appraisal systems? 

(c) Suggestion systems? (d) Self-managing 

work teams? 

The following list includes a number of qualities that have 

been identified as being associated with success 

in an expatriate 

assignment. Rate the degree to which you possess 

each quality, using the following scale: 

1 : very low 

2:1ow 

3 : moderate 

4 : high 

5 : very high 

- Resourcefulness/resilience 

- Adaptability/flexibility 

resources, particularly with regard to expatriate managers. 

Managers cannot overestimate the importance of effectively 

managing human resources to gain competitive 

advantage in today's global marketplace. 

Third-country nationals 

(TCNs),671 

Tiansnational scope, 674 

Tiansnational representation, 674 

Tiansnational process, 674 

3. The chapter notes that political-1ega1 and economic 

systems can reflect a country's culture. The former Eastern 

bloc countries seem to be changing their politicallegal 

and economic systems. Is this change brought on 

by their cultures, or will culture have an impact on the 

ability to change these systems? Why/ 

4. Think of the difTerent levels of global participarion. 

til/hat 

companies that you are familiar with exhibit the 

different levels of particrpation? 

5. Think of a time when you had to function in another 

culture (on a vacation or job). What were the majtrr 

obstacles you faced, and how did you deal with theml 

\fas this a stressful experiencel \Vhy? How can companies 

help expatriate employees deal with stressl 

'What 

types of skills do you need to be able to lnanage 

in today's global marketplace? \fhere do you exf',ect r,, 

get those skillsl \7hat classes and/or experiences u ill 

vou needJ 

- Enotional stability 

- Ability to deal with ambiguitly'uncertainrv Jiffur.r.rcc. 

- Desire to work with peopie u'ho are Jittcrcnr 

- Cultural ernpathy/rensitrvirl 

- Tolerance of others'r'iews, esfeciallr uhcn th.r .lrtfer 

from your own 

- Sensitivity to feelinus ;rn.l arr rtrr.lc. ,'t , 'rirrr. 

- Good health and wellness 

Add Lrp your total score for the itcnr:. Tht hrsh.r r.,ur 

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some of the issues confronting Toyota as it achieves top-dog 

status. Edited excerpts form their conversation follow: 

Have you been talking among yourselves about protect' 

ing your culture, which could be vulnerable to change as 

you become the world's largest auto maker? 

As far as Toyota culture goes . . . we regard ourselves as 

Japanese, but more important than the Japanese nature of 

our company is the "Toyota'Way," which is embodied in 

our concepts and systems. 

Toyota lfay is more than just a Japanese !Vay. It's 

about constant improvement. If it was a Japanese \fay 

only, then we wouldn't have Japanese companies that 

perform poorly or go into bankruptcy. Toyota doesn't 

monopolize this idea. And it has to translate beyond 

Japanese culture to be successfui. \7e employ close to 

400,000 worldwide, excluding dealers. If we include dealers, 

it might be about i million. 

Of that, a significant number are Japanese. But there 

are peopie from every culture working for Toyota that 

share the concept and this way of doing business. From 

that viewpoint, growing larger doesn't suggest that we're 

stepping out of anything that's part of our culture. 

Someone I know says Toyota really believes and nur' 

tures the idea that the company should be able to build a 

car with no problems or flaws. When this person does 

business with Ford and GM, it's different, they tell me. 

Those companies strive to be better, but you don't get 

the idea they think a perfect car is possible. 

With the Toyota \fay . . . one of the key elements tskmzen: 

continuous improvement. There's no end to it. It's a never' 

ending journey. Respect for people is another important 

element. Employees. Customers. Suppliers. When it comes 

to consumers, they demand changes from time to time. 

\7e have to always keep watching what the consumer 

wants. If we base our business on what the customer wants, 

there's no end to the improvement we can achieve. 

I remember a story related to me by a supplier company: 

They entered into a contract to supply axles {or pickup 

trucks. It was the first contract his company had with 

Toyota. He said he was awarded the contract with no 

discussion of price. It was all based on whether his company's 

processes and quality were acceptable to Toyota. 

He was flabbergasted. Is that a common way Toyota 

does business? 

Toyota's thinking based on the Toyota \fay is teamwork 

with suppliers. This teamwork is going to be a long-lasting 

relationship. Price is only one eiement. Trust is a more important 

element. The reiationship is a sharing concept, 

and should always be win.wln. Price is important, too. But 

trust is perhaps more so, This is an idea that American 

business schools have come to preach. lBM, Ceneral Electric, 

and other companies talk about how important the 

mission of the company is. Toyota is only doing intelli' 

gently what the business schools are teaching. 


In the church when you get married, the priest ol lrrnister 

doesn't ask each partner how much each will get from 

the other in terms of money. You're asked about how well 

you get along. What is your commitment to one anotherJ 

Now, in real-life situations, some companies practice this, 

and some don't. Some practice this in the United States. 

Some don't. It's the same in Japan. So there are fantastic 

achievements in both countries, and there are bankruptcies 

in both countries. So, it isn't a Japanese issue or an 

American issue. It's a company-culture issue. 

Growth comes from both new products and boosting 

volume of existing products. Will yout sales growth 

come more {rom new products or {rom existing products 

in new geographic markets? 

I think 15 percent g1obal market share isn't low, but it's 

not that high either. There are a lot of opportunities for 

our product lineup as it is. But now that we have gone into 

full-size pickups with the new product, we fill in a significant 

segment. 

I think we need to pursue more niches in the future. 

\7e had a car at the Detroit Auto Show that could be a replacement 

for the former Supra sports car. But what's more 

important is to keep improving the products we have. Like 

Camry-what consumers want out of Camry is always 

changing. That's my understanding of how to keep a product 

sffong for the future. We will look after Camry customers 

by looking after Camry as a product. Same goes 

with RAV4 and others. 

From time to time' a GM or Ford exec will complain 

about an uneven playing field: a health.care advantage 

for Toyota, or monetary policy that {avors Japanese 

products. Do you and your colleagues read that and pay 

attention? 

\7e always read the stuff in the newspapers. We knou. 

health care is very difficult situation for the Big Three. 

It's a fact of life that they incur mole costs. That's the 

political and economic history of the United States. A 

decision was made some yeats back on what they rvould 

give to workers. To some degree, the probiem is of their 

own creation. 

Not all the workers in every industry receive as high a 

medical benefit as in the aulo industry. lfho decided thatl 

It's their management. They complain sometimes about 

the currency valuation. It's very difficult. For example, the 

biggest economy in the world is the United States. Bigger 

than Japan. lt's the Big Three who have an advantage in 

operating in the biggest economy in the world. For mvself' 

I invested in my English education. If you're born here' 

there's no need to invest in that. So, that's not a level 

playing field. It's very difficult to define what a ler-el plaving 

field is. 

You would think that GM and Ford execs, given the {act 

they all grew up here, should have a better idea of hou' 

to design and package a family sedan and minivan, vet

letlods s Iuvd 069 

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CHAPTER l5 Manaqinq Human Resources Globallv 69 I 

15. R. Yates, "Japanese Managers Say They're Adopting Some U.S. 

'lhbane, 

Ways," Chicago February 79, 1992, p. Bl. 

16. G. Hofstede, "Dimensions of National Cultures in Fifty Countries 

and Three Regions," in Expecrarions in Cross-CuLtwal Pslchologl, 

eds. J. Deregowski, S. Dziurawiec, and R. C. Annis (Lisse, Netherlands: 

Swets and Zeitlinger, 1981). 

17. G. Hofstede, "Cultural Constraints in Management Theories," 

Academy of ManagementExecutiueT (1993), pp. 81-90. 

18. G. Hofstede, "The Cultural Relativity of Organizational Theories," 

JotmnLof InremationalBusmess Srudies 14 (1983), pp. 75-90. 

19. G. Hofstede, "Cultural Constraints in Management Theories." 

20. S. Snell and J. Dean, "lntegrated Manufacturing and Human Resource 

Management: A Human Capital Perspective," Academy of 

Mungement J oumal 3 5 (1997) , pp . 467 -5A4 41. M. Mendenhall and G. Oddou, "The Dimensions of Expatriate 

Acculturation," Academy of Management Relieu 10 (1985), 

pp.39-47. 

42. W. Arthur and W. Bennett, "The International Assignee: The 

Relative Importance of Factors Perceived to Contribute to Success," 

Personnel Ps1'chologl 48 ( 1995), pp. 99-1 I 4. 

43. R. Tung, "Selecting and Training of Personnel for Overseas Assignments," 

ColumbiaJoumal of Vlorld Bzsiness 16, no. 2 (1981), 

pp. 68-78. 

44. Moran, Stahl, and Boyer, Inc., lnternational Human Resource 

Management (Bou1der, CO: Moran, Stahl, & Boyer, 1987). 

45. P. Caligiuri, "The Big Five Personality Characteristics as Predictors 

of Expatriates' Desire to Terminate the Assignment and 

. 

Supervisor Rated Performance," Personnel Pslchologl 53 (2000), 

21. \{/. Johnston and A. Packer, Workforce 2A00: \York andWorkers pp. 67-88. 

for the Twentl'first CentrffJ (lndianapolis, IN: Hudson Institute, 46. P. Caligiuri and R. Tung, "Comparing the Success of Male and 

1 988 ). 

Female Expatriates from a U.S.-based Multinational Company," 

22. H. Meyer, "Human Resource Management in the German Demo- InternationaL Journal of Human Resource Management 10, no. 5 

cratic Republic: Problems of Availability and the Use of Man- (1999), pp. 763-82. 

power Potential in the Sphere of the High-Qualification 47. L. Stroh, A. Varma, and S. Valy-Durbin, "Why Are Women Left 

Spectrum in a Retrospective View," in Hwnan Resornce Manage- at Home/ Are They Unwilling to Go on International Assignment: 

AnlnternationalComparison, ed. R. Peiper (Berlin: Walter rnents?"-/oumal o/WorllBusiness 35, no. 3 (2000), pp. 241-55. 

de Gruvter, 1990). 

48. A. Harzing, Managlng the MultinationaLs: An International Study of 

23. P. Conrad and R. Peiper, "Human Resource Management in the C onn oL Mechanisms (Cheltenham: Edward Elgar, 1 999 ). 

Federal Republic of Germany," in ibid. 

49. J. S. Black and M. Mendenhall, "Cross-CulturalTiaining Elfective- 

24. N. Adler and S. Bartholomew, "Managing Globally Competent ness: A Review and Theoretical Framework for Future Research," 

People," The Executiue 6 (1997), pp. 57 65 . 

Academy of MonagementReuiew L5 (1990), pp. 113 36. 

25. B. O'Reilly, "Your New Global lforkforce," Fortune, Decernber 50. B. Fitzgerald-Ti.rrner, "Myths of Expatriate Life," HRMagaTine !7, 

\4,1997.,pp.57 66. 

no. 6 (June 1997), pp. 65-74. 

26. A. Hoffman, "Are Technology Jobs Headed Offshore?" Monster. 51. P. Dowling and R. Schuler, InternationaL Dimensions of Human 

com, http://technology. monster.com/articles/offshore. 

r? I I ^r.,r^1-^ ^*r \/ e^--rello, Federal Employment Regulation in 

Res orn ce Management ( Boston: PWS -Kent, 1 990 ). 

52 Adler, International Dimensions of C)r ganiT.ational B ehayior. 

Humon Resour ce Management ( Boston: PWS.Kent, 1 99 1 ). 53 Dowling and Schuler, lnternationaLDimensions of Hmnan Resource 

28. Conrad and Peiper, "Human Resource Management in the Fed- Manngement. 

eral Republic of Germany." 

)1 R. Schuler and P. Dowling, Sunel o/ASPA/I Members (New York: 

29. R. Solow, "Growth with Equity through Investment in Human Stern School ofBusiness, New York University, 1988). 

Capital," The George Seltzer Distinguished Lecture, University 55 C. Joinson, "No Returns: Localizing Expats Saves Companies Big 

of Minnesota. 

Money and Can Be a Smooth Tiansition with a Little Due Dili- 

30. M. Bloom, G. Milkovich, and A. Mitra, "Toward a Model of Ingence by HR," HRMagaxine 11, no. 41 Q)AZ), p.7A, 

ternational Compensation and Rewards: Learning from How 56. J. J. Smith, "Firms Say Expats Getting Too Costly, but Few Wili- 

Managers Respond to Variations in Local Host Contexts," working to Act" (2006), SHRM Online, retrieved March 9, 2007, 

ing paper 00-14 (Center for Advance Human Resource Studies, www.shrm.org/global/library*published/subl ect/nonlC/CMS_ 

Cornell Universir y: 2000). 

018300.asp. 

31. R. Kopp, "lnternational Human Resource Policies and Practices 57. C. Solomon, "Repatriation: Up, Down, or Out?" Personnel Journol 

in Japanese, European, and United States Multinationals," (1995), pp. 2B-17. 

Httman Resour ce Mmagement 3 3 ( 1 994 ), pp. 5 B 1 99. 

58. "Workers Sent Overseas Have Adjustment Problems, a New 

12. Adler, International Dimensions of OrgoniTational Behauior. 

Study Shows," TheWaILStreetJournnl, June 19, 1984, p. 1. 

33. S. Jackson and Associates, Diuersity in the Workplace: Humon 

Resource Ininatives (New York: Guilford Press, 1991). 

59. J. S. Black, "Repatriation: A Comparison of Japanese and American 

Practices and Results," Proceedings of the Eastern Academl oJ 

34. Adler and Banholomew, "Managing Globally Competent People." Management Bi- annual International C onf er ence ( Hon g Kong, 

35. Ibid. 

1989), pp. 45i9. 

16. S. Dolianski, "Are Expats Cetting Lost in the Translation?" 60. J. S. Black, "Coming Horne: The Relationship of Expatriate Ex- 

Workforce, February 1997. 

37. L. Copeland and L. Griggs, Going International (New York: 

pectations with Repatriation Adjustment and Job Performance," 

Human Relnaons 45 (L997) , pp . 17 7 

Random House, 1985). 

38. K. F. Misa and J. M. Fabriacatore, "Retum on lnvestments of Over 

seas Personnel," Fironcial E xecutit e 47 (April 197 9 ), pp. 4246. 

39. N. Forster, "The Persistent Myth of High Expatriate Failure Rates: 

A Reappraisal," International JournaL of Human ResotnceMonagemenr 

8, no. 4 (1997),pp.414-34. 

40. M. Mendenhall, E. Dunbar, and G. R. Oddou, "Expatriate Selection, 

Tiaining, and Career-Pathing: A Review and Critique," 

Hwnan Resource Management 2.6 (1987 ), pp. 33 1-45. 

-92 . 

61. Adler, Intemntional Dimensions of Organizational Behavior. 

62. Black, "Coming Horne." 

63. C. Solomon, "Repatriation: Up, Down, or Out?" 

64. P. Evans, V. Pucik, and J. Barsoux, The GIobaLChallenge: International 

Human Resource Management (New York: McGraw-Hill, 

2002), p. 137.

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