Ihrm Chapt 5
Ihrm Chapt 5
Ihrm Chapt 5
C H A P T E R
Chapter Objectives
Introduction
Hiring and then deploying people to positions where they can perform effectively
is a goal of most organizations, whether domestic or international. Recruitment is
defined as searching for and obtaining potential job candidates in sufficient num-
bers and quality so that the organization can select the most appropriate people to
fill its job needs. Selection is the process of gathering information for the purposes
of evaluating and deciding who should be employed in particular jobs. It is impor-
tant to note that recruitment and selection are discrete processes and both
processes need to operate effectively if the firm is effectively to manage its staffing
process. For example, a firm may have an excellent selection system for evaluating
candidates but if there are insufficient candidates to evaluate then this selection sys-
tem is less than effective. Both processes must operate effectively for optimal
staffing decisions to be made. We shall return to this point later in the chapter.
Some of the major differences between domestic and international staffing are
first that many firms have predispositions with regard to who should hold key po-
sitions in headquarters and subsidiaries (i.e. ethnocentric, polycentric, regiocentric
and geocentric staffing orientations) and second, the constraints imposed by host
governments (e.g. immigration rules with regard to work visas and the common
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Compounding the above myths is the way in which the term ‘global manager’ is
sometimes used to describe a person who has a global ‘mindset’, though often in-
ternational experience is a prerequisite for building the global perspective
required. Baruch5 argues that there is no consistent way to characterize a global
manager. He suggests that the basic qualities commonly listed – intelligence, mo-
tivation, adaptability and entrepreneurship – are the same requirements for any
successful manager today.
Profile of an expatriate
Table 5-1 shows the current profile of an expatriate, drawn from results of a 2005
GMAC worldwide survey of 125 multinationals representing both small and large
organizations. For 46 per cent of respondents, the company headquarters was
located outside of the USA (a record high response from non-US firms). As the
results show, while the largest group of expatriates are PCNs, this group is not
the majority and the HCN and TCN groups are significant. Most expatriates are male
(77 per cent), aged 30–49 (66 per cent), married (61 per cent) and accompanied by
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HCN (29%)
Expatriate category PCN (44%) TCN (27%)
Source: Adapted from 'Global Relocation Trends: 2005 Survey Report', GMAC Global Relocation Services,
National Foreign Trade Council and SHRM Global Forum (2006), GMAC-GRS.
a spouse (81 per cent) and children (52 per cent). While the majority of
assignments are 1–3 years (53 per cent), a total of 27 per cent of assignments are
classified as short term (i.e. less than one year). The primary reason for the assign-
ment is to fill a position and, interestingly, only 12 per cent of assignees had prior
international experience.
Given the important roles commonly assigned to expatriates, it is logical to
assume that MNEs take great care in their selection process. What is evident from
the now considerable literature on the topic is that the selection of expatriates is
complex. Indeed, predicting future performance potential when hiring or promot-
ing staff is challenging at the best of times, but operating in foreign environments
certainly adds another level of uncertainty. For this reason, before we take a criti-
cal look at criteria for expatriate selection, we should consider the current debate
surrounding expatriate non-performance.
Expatriate failure
There are three questions related to failure: its definition, the magnitude of the
phenomenon and the costs associated with failure. We shall treat these separately
before examining the reasons attributed to expatriate failure and the link to selec-
tion criteria.
What do we mean by expatriate failure? The term expatriate failure has been
defined as the premature return of an expatriate (that is, a return home before the
period of assignment is completed). In such a case, an expatriate failure represents
a selection error, often compounded by ineffective expatriate management poli-
cies. There has been some discussion in the literature about the usefulness of
defining expatriate failure so narrowly. An expatriate may be ineffective and poorly
adjusted yet, if not recalled, the person will not be considered a failure. Because
of an inability either to effectively handle the new responsibilities or to adjust to
the country of assignment, performance levels may be diminished. These results
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will not be immediately apparent but can have long-term negative consequences
in terms of subsidiary performance. However, if the expatriate remains for the
duration of the assignment, to all intents and purposes, the assignment will have
been considered a success.
Thus, the premature return rate is not a perfect measure of success or failure,
and may underestimate the problem. For example, in his study of 36 British-based
firms, Forster6 used the broadest definition of failure (that is, including under-
performance and retention upon completion of the assignment). Forster found
that a high proportion of staff do struggle to cope with their overseas assignments,
concluding:
If we accept that a broader definition of EFRs [expatriate failure rates] is
warranted, then it can be argued that the actual figure of those who are
‘failing’ on IAs [international assignments] could be somewhere between
8 per cent and 28 per cent of UK expatriates and their partners.
Support for broadening the definition of expatriate failure comes from a 1997/98
Price Waterhouse7 study of international assignment policy and practice among
European multinationals (including US subsidiaries). Unlike previous surveys of
this kind, the study added ‘under-performance’ to its definition of assignment
failure, and found:
The rates for employees currently under-performing on assignment as a result
of difficulties in adapting to their cultural surroundings are even higher. 29%
of companies report a rate in excess of one in twenty, with 7% reporting a rate
over one in ten.
10 per cent of their international assignments ended in early recall. The second
survey by GMAC Global Relocation Services (GMAC-GRS) mentioned earlier asked
responding firms to indicate their attrition rate – that is, expatriate turnover, in-
cluding early recall from an international assignment, and upon completion of the
assignment. Again, we find that some firms (36 per cent) could not answer, as they
did not have the figures. Those that did have the information indicated that 21 per
cent left the firm during an assignment and 23 per cent within one year of return-
ing from an assignment. It would have been useful to find out why so many of the
responding firms in these two surveys did not keep records on assignment
failures. Perhaps this is because it is not seen as an important issue?
Respondents in the ORC Worldwide survey were also asked to define a failed
assignment. Seventy-two per cent defined it as ‘early return of the expatriate’. The
other definitions were: ‘unmet business objectives’ (71 per cent); ‘problems at
assignment location’ (49 per cent); and ‘unmet career development objectives’
(32 per cent). It would appear multinationals are recognizing that there are many
aspects to a failed assignment, though it is not clear from the report if responding
firms were separating out under-performance from early recall. Unmet business
objectives, problems at assignment location and unmet career development may
be reasons for early recall rather than a definition.
From the above discussion, though, we can draw a number of conclusions:
1 Broadening the definition of expatriate failure beyond that of premature
return is warranted. Following up broad surveys with interviews with
responding firms may assist in this.
2 Regardless of the definition or precise amount of ‘failure’, its very exposure as
a problem has broadened the issue to demonstrate the complexity of interna-
tional assignments. In fact, one could argue that the so-called persistent myth
of high US expatriate failure rates has been a positive element in terms of the
attention that has subsequently been directed towards expatriation practices.
It has certainly provoked considerable research attention into the causes of
expatriate failure.
3 The evidence about expatriate failure rates is somewhat inconclusive. Recent
studies suggest that high failure rates reported in the 1980s have not persisted
for US nationals. Though recent reports do not break results down into
nationality groups, US firms form the largest group in these surveys. The
European studies reported above were conducted at various intervals since
Tung’s original study, and do not include the same countries. Further, non-US
researchers have been reporting from regional or single country perspectives
(see for example, Björkman and Gertsen13 who found expatriate failure rates
of less than 5 per cent for Nordic firms; Dowling and Welch14 reported similar
results for Australian firms).
4 The above studies tend not to differentiate between types of expatriate
assignments, the level of ‘international’ maturity,15 or firm size – factors that
may influence failure in its broadest sense.
5 It may be that companies operating internationally have since become more
aware of the problems associated with expatriate failure and have learned
how to avoid them. That is, multinationals have become more sophisticated
in their approach to IHRM activities. Benchmarking against other firms
may have assisted in the development of an awareness of international
assignment issues.
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What are the costs of failure? These can be both direct and indirect. Direct
costs include airfares and associated relocation expenses, and salary and training.
The precise amount varies according to the level of the position concerned, coun-
try of destination, exchange rates and whether the ‘failed’ manager is replaced by
another expatriate.
The ‘invisible’ or indirect costs are harder to quantify in money terms but can
prove to be more expensive for the company. Many expatriate positions involve
contact with host-government officials and key clients. Failure at this level may
result in loss of market share, difficulties with host-government officials and
demands that expatriates be replaced with HCNs (thus affecting the multina-
tional’s general staffing approach). The possible effect on local staff is also an indi-
rect cost factor, since morale and productivity could suffer.16
Failure also, of course, has an effect on the expatriate concerned, who may lose
self-esteem, self-confidence and prestige among peers.17 Future performance may
be marked by decreased motivation, lack of promotional opportunities, or even
increased productivity to compensate for the failure. Finally, the expatriate’s fam-
ily relationships may be threatened. These are additional costs to organizations
that are often overlooked.
Naturally, the debate about the degree to which expatriate failure occurs has been
accompanied by investigation and speculation about why failure occurs. Expatri-
ates tend to have a higher profile, so reducing the rate of incidence is of some
strategic importance as multinationals continue to rely on expatriates and therefore
wish to encourage mobility. Consequently, there has been considerable research
that has attempted to identify factors that may moderate performance and affect the
decision to stay or leave the international assignment. The primary intention has
been to link reasons for early recall to predictors of success and thereby generate
selection criteria that may assist multinationals in their staffing decisions. While
the focus has predominately been on cross-cultural adjustment, other factors
have been identified, as shown in Figure 5-1. We will base our examination of the
issue around this figure.
Moderators
• Inability to adjust
to foreign culture
• Length of assignment
• Willingness to move
• Work-related factors
• Psychological contract
Performance
Japanese education system, the spouse commonly opts to remain in Japan with
the children, particularly where male offspring are concerned. The Japanese
word for these unaccompanied male expatriates is tanshin funin or bachelors-
in-exile.20 Thus, in many cases, the spouse is not a factor in expatriate failure.
Unlike the debate around the magnitude of the problem, research over the
past 20 years has shown a consistent ranking of ‘inability of the spouse/partner/
family’ as a primary cause of early recall. The GMAC-GRS 2005 global survey
mentioned above reported the following reasons for early return (in rank
order):
1 family concerns
2 accepted new position in the company
3 completed assignment early
4 cultural adjustment challenges
5 security concerns
6 career concerns.
The persistence of family concerns as a reason for early return over several
decades since Tung’s findings were published, despite company programs to try to
alleviate the problem, indicate how difficult an international assignment can be for
some. It certainly explains why so much attention has been given to expatriate ad-
justment and confirms the importance of the selection process.
While there is limited evidence (at least readily accessible and in English) re-
garding expatriate experiences from other Asian countries, accounts indicate that
expatriates from these countries may face similar adjustment problems. For exam-
ple, Selmer et al.21 report that spouses and children of Chinese expatriates in
Hong Kong were normally not permitted to accompany the expatriates. While
adjustment was not the focus of this study, the authors found that most of the
respondents would have liked to have had their family with them, and conclude
that the precarious situation of the families was not conducive to the pursuit of an
international career.
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Phase 3: Pulling up
Phase 2: Crisis
Culture shock May exit?
Time
Source: Adapted from H. De Cieri, P.J. Dowling and K.F. Taylor, ‘The Psychological Impact of
Expatriate Relocation on Partners’, International Journal of Human Resource Management,
Vol. 2, No. 3 (1991) p. 380.
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Length of assignment
There is some evidence that length of assignment does contribute to adjustment
and performance. For example, the average assignment for Japanese firms tends to
be four to five years, compared with the figure shown in Table 5.1 of 1–3 years for
53 per cent of the sample of the GMAC 2005 survey. A longer assignment allows
the expatriate more time to adjust to the foreign situation and become produc-
tive.26 Japanese firms often do not expect the expatriate to perform up to full ca-
pacity until the third year; the first year of the foreign assignment is seen mainly as
a period of adjustment to the foreign environment.
Willingness to move
In a situation where an employee is a reluctant expatriate or accompanied by re-
luctant family members, it is more likely that they may interpret negatively events
and situations encountered in the new environment. In their survey of 405 US
managers and their spouse/partners, Brett and Stroh27 found a significant causal
relationship between the manager and the spouse’s willingness to move. They
conclude that managers who are most ready for international relocations are those
whose spouses are also supportive of that move – a not surprising finding. Other
studies support the importance of a positive outlook. For example, Hamill28
reported that the reasons for lower British expatriate failure rates were that British
managers were more internationally mobile than US managers, and that perhaps
British companies had developed more effective expatriate policies. Dowling
and Welch29 note that the respondents in their research perceived an expatriate
posting as a desirable appointment – an opportunity to travel and live overseas –
leading to a positive outlook on the foreign assignment. Willingness to relocate as
a predictor of success should include the views of family members and is also
associated with the perceived desirability of the location of the international
assignment.
to stay’. Support for these factors as moderators has come from a study by Shaffer
et al.31 of expatriates working in ten US multinationals. However, Bolino and
Feldman32 extended this to include skills utilization and commitment to the orga-
nization. Their study of 268 expatriates from six Fortune 500 companies found
that effective skill utilization was significantly related to job satisfaction, organiza-
tion commitment and intent to finish the international assignment.
Job autonomy is also a powerful factor influencing expatriate turnover.33
Another moderator is the perceived level of organizational support – from home
as well as from the host unit.34 Further, once the expatriate has mastered, or nearly
completed, the assigned work, other factors may surface and assume relative
importance. For instance, if the work becomes less demanding and no longer so
time-consuming, the expatriate may have time to pay more attention to negative
cross-cultural experiences that the family is encountering. These negative experi-
ences can become distorted when combined with lack of challenge at work and
thus sow seeds for early recall, or under-performance.
Selection criteria
Cross-cultural
suitability
Technical Family
ability requirements
Individual
Selection decision
Situation
Country/cultural MNE
requirements requirements
Language
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Technical ability
Naturally, the person’s ability to perform the required tasks is an important con-
sideration. Technical and managerial skills are therefore an essential criterion. In-
deed, research findings consistently indicate that multinationals place heavy
reliance on relevant technical skills during the expatriate selection process.35 For
example, the ORC Worldwide 2002 survey mentioned earlier found that 72 per
cent of responding firms selected assignees on the basis of skills or competencies
for the job. This is not surprising given that ‘position filling’ is the most common
reason for an international assignment. Reinforcing the emphasis on technical
skills is the relative ease with which the multinational may assess the candidate’s
potential, as technical and managerial competence can be determined on the
basis of past performance. Since expatriates are predominantly internal recruits,
personnel evaluation records can be examined and checked with the candidate’s
past and present superiors. The dilemma though is that past performance may
have little or no bearing on one’s ability to achieve a task in a foreign cultural
environment.
Cross-cultural suitability
As we have already discussed, the cultural environment in which expatriates oper-
ate is an important factor in determining successful performance. Apart from
the obvious technical ability and managerial skills, expatriates require cross-
cultural abilities that enable the person to operate in a new environment. There
appears to be a consensus that desirable attributes should include cultural empa-
thy, adaptability, diplomacy, language ability, positive attitude, emotional stability
and maturity.36
In practice, while inter-cultural competence is recognized as important, it is
difficult to precisely define what this comprises, let alone assess a candidate’s
suitability in this regard. One has to take into consideration aspects such as the
individual’s personality, attitude to foreigners, ability to relate to people from
another cultural group and so on. Multinationals may indicate that, for example,
relational abilities are an important expatriate selection criterion, but few will
assess a candidate’s relational ability through a formal procedure such as judge-
ment by senior managers or psychological tests. As we will discuss shortly, testing
procedures are not necessarily the answer.
Family requirements
The contribution that the family, particularly the spouse, makes to the success
of the overseas assignment is now well documented, as we mentioned above in
relation to the impact of the accompanying spouse/partner on early return. Despite
the importance of the accompanying spouse/partner, as Shaffer and Harrison37
point out, the focus has been on the expatriate. From the multinational’s perspec-
tive, expatriate performance in the host location is the important factor. However,
the interaction between expatriate, spouse/partner and family members’ various
adjustment experiences is now well documented.
It should be pointed out the spouse (or accompanying partner) often carries a
heavy burden. Upon arrival in the country of assignment, the responsibility for set-
tling the family into its new home falls on the spouse, who may have left behind a
career, along with friends and social support networks (particularly relatives). In
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developing countries the employment of house servants is quite common but this
is an aspect of international living that many Westerners from developed countries
have some difficulty adjusting to. It is often not possible for the spouse/partner
to work in the country of assignment and the well-being and education of the
children may be an ongoing concern for the spouse. Though the majority of
spouses are female, accompanying male spouses/partners face similar problems
of adjustment.38 In fact, when one adds cultural adjustment problems to such a
situation, it is perhaps not so surprising to find that some couples seek to return
home prematurely.
Despite studies that emphasize the link between the favorable opinion of the
spouse to the international assignment and expatriate adjustment, companies
appear reluctant to include the spouse/partner in the selection process, treating it
in a peripheral way.39 As a survey by Price Waterhouse40 found:
Compared to our 1995 survey, the number of companies which routinely
interview an employee’s spouse or partner as part of the selection process has
increased slightly, from 9% to 11%. However, overall, fewer companies involve
the spouse or partner in the selection process under any circumstances, rising
from half in 1995 to two-thirds currently. Of the companies which do interview
the spouse or partner, 12% interview them on their own. Given that more
than a third of the companies believe the assignments that either failed, or
had been ended prematurely, due to a spouse or partner’s difficulties with
adapting to life in the host location, it is perhaps a little surprising that
companies are not attributing more importance to assessing their suitability.
The 2002 ORC Worldwide survey did not address the involvement of the spouse/
partner in the selection process, though reports that assistance was provided to help
the accompanying person cope with the international assignment.
Apart from the accompanying partner’s career, there are family considerations
that can cause a potential expatriate to decline the international assignment.
Disruption to children’s education is an important consideration, and the selected
candidate may reject the offered assignment on the grounds that a move at this
particular stage in his or her child’s life is inappropriate. The care of aging or
invalid parents is another consideration. While these two reasons have been noted
in various studies, what has been somewhat overlooked is the issue of single
parents. Given increasing divorce rates, this may become a critical factor in assign-
ment selection and acceptance where the custody of children is involved. The as-
sociated legal constraints, such as obtaining the consent of the other parent to take
the child (or children) out of the home country, and visiting/access rights, may
prove to be a major barrier to the international mobility of both single mothers
and single fathers.
Country/cultural requirements
As discussed in Chapter 1, international firms are usually required to demonstrate
that a HCN is not available before the host government will issue the necessary
work permit and entry visa for the desired PCN or TCN. In some cases, the multi-
national may wish to use an expatriate and has selected a candidate for the inter-
national assignment, only to find the transfer blocked by the host government.
Many developed countries are changing their legislation to facilitate employment-
related immigration which will make international transfers somewhat easier – for
example the European Union Social Charter allows for free movement of citizens
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of member countries within the EU. It is important that HR staff keep up-to-date
with relevant legislative changes in the countries in which the MNE is involved.
Our IHRM in Action Case below shows how one US MNE’s careful planning
allowed it to obtain the required number of PCN visas to successfully launch its
business in Australia.
An important, related point is that generally a work permit is granted to the ex-
patriate only. The accompanying spouse or partner may not be permitted to work
in the host country. Increasingly, multinationals are finding that the inability of the
spouse to work in the host country may cause the selected candidate to reject the
offer of an international assignment. If the international assignment is accepted,
the lack of a work permit for the accompanying spouse or partner may cause diffi-
culties in adjustment and even contribute to failure. For these reasons, as reported
above, some multinationals provide assistance in this regard.
Further, the host country may be an important determinant. Some regions and
countries are considered ‘hardship postings’: remote areas away from major cities
or modern facilities; or war-torn regions with high physical risk. Accompanying
family members may be an additional responsibility that the multinational does
not want to bear. There may be a reluctance to select females for certain Middle
East or South East Asian regions and in some countries a work permit for a female
expatriate will not be issued. These aspects may result in the selection of HCNs
rather than expatriates.
To overcome this problem, a group of more than 20 large multinationals (in-
cluding Shell, British Airways, Unilever, PricewaterhouseCoopers and Siemens)
has established an organization called ‘Permits Foundation’,41 in an attempt to
promote the improvement of work permit regulations for spouses of expatriates.
It also aims to raise government awareness of the connection between work per-
mits and employee mobility.
MNE requirements
Situational factors often have an influence on selection decisions. For example, the
MNE may consider the proportion of expatriates to local staff when making selec-
tion decisions, mainly as an outcome of its staffing philosophy. However, opera-
tions in particular countries may require the use of more PCNs and TCNs than
would normally be the case, as multinationals operating in parts of Eastern Europe
and China are discovering. This will affect the selection ratio – that is, PCN:TCN:
HCN. Other situational factors include the following:
G The mode of operation involved. Selecting staff to work in an international
joint venture may involve major input from the local partner, and could be
heavily constrained by the negotiated agreement on selection processes.42
G The duration and type of the assignment.43 Family members tend not to
accompany an expatriate when the assignment is only for three to six months,
so family requirements would not normally be a relevant factor in the
selection decision in such cases.
G The amount of knowledge transfer inherent in the expatriate’s job in the
foreign operation. If the nature of the job is to train local staff, then the MNE
may include training skills as a selection criterion.
Language
The ability to speak the local language is an aspect often linked with cross-cultural
ability. However, we have chosen to stress language as situation-determined in
terms of its importance as a factor in the selection decision. Language skills
may be regarded as of critical importance for some expatriate positions, but lesser
in others, though some would argue that knowledge of the host country’s lan-
guage is an important aspect of expatriate performance, regardless of the level of
position.
Differences in language are recognized as a major barrier to effective cross-
cultural communication.44 Yet, in terms of the other selection criteria we have ex-
amined above, from the multinational’s perspective, language is placed lower
down the list of desirable attributes. For example, the ORC Worldwide survey re-
sults rank language ability as the fifth most important selection criteria. In the past,
US multinationals have tended to place a relatively low importance on foreign
language skills. For example, in a 1990 study of US multinationals, Fixman45 found
that foreign language skills were rarely considered an important part of interna-
tional business success. She comments: ‘Language problems were largely viewed
as mechanical and manageable problems that could be solved individually’. This
view is also confirmed by the consistent and relatively poor performance of young
Americans on polls of geographic literacy sponsored by the National Geographic
Education Foundation. In the most recent 2006 poll46 of young American adults
between the ages of 18 and 24 the following results were reported:
G 50 per cent of the sample thought it was ‘important but not absolutely
necessary’ to know where countries in the news are located.
G 75 per cent did not know that a majority of Indonesia’s population of
245 million is Muslim (making it the largest Muslim country in the world).
G 74 per cent of the sample thought that English was the most commonly
spoken language in the world, rather than Mandarin Chinese.
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There are signs that in a post 9/11 world, the USA is beginning to refocus on some
of these issues. Recently, the Committee on Education and the Workforce of the US
Congress47 has examined the issue of international and foreign language studies
and the Chair of the Committee noted that:
Congress created Title VI in the National Defense Education Act of 1958 to
address a sense of crisis caused by U.S. citizens’ lack of knowledge of other
countries and cultures. This program remains the federal government’s
leading mechanism for supporting programs that produce Americans with
expertise in foreign languages and international studies, including
international business . . . Continued federal support for these programs
reflects the significance and growing relevance of language and area studies,
diplomacy, national security, and business competitiveness.
This level of commitment is encouraging, but as we noted in Chapter 1, the task of
internationalizing business education in the USA is a large one and will require
considerable resources and persistence for significant progress to be made.
Another component to language as a situation factor in the selection decision is
the role of the common corporate language. As previously discussed, many multi-
nationals adopt a common corporate language as a way of standardizing reporting
systems and procedures. This is not, perhaps, an issue for PCN selection within
multinationals from the Anglo-Saxon world (Britain, the USA, Canada, Australia
and New Zealand) where the chosen corporate language remains the same as that
of the home country. However, it becomes an expatriate selection issue for multi-
nationals from non-English-speaking countries that adopt English as the corporate
language, unless the posting is to a country with a shared language. For instance,
a Spanish multinational, using Spanish as the corporate language, selecting a PCN
to head its new subsidiary in Mexico, does not face the same language issue as a
Spanish multinational, with English as its corporate language, selecting a PCN to
its US facility. For the latter, fluency in English would be required. Lack of fluency
in the corporate language, therefore, can be a selection barrier. Prospective candi-
dates may be eliminated from the potential pool due to a lack of at least compe-
tency in the common language.48 Language ability therefore may limit the MNE’s
ability to select the most appropriate candidate.
of the USA. The case involved an American citizen who claimed that he had been
illegally discriminated against while working overseas for a US corporation. A
naturalized citizen born in Lebanon, the plaintiff began working for Aramco
Corporation in Texas in 1979 and was transferred by the company to work in
Saudi Arabia in 1980, where he worked until 1984, when he was discharged. The
Court rejected the person’s claim that he had been harassed and ultimately dis-
charged by Aramco Corporation on account of his race, religion and national ori-
gin. This decision had important implications for the status and protection of
Americans working abroad for US firms and the Civil Rights Act was subsequently
amended by the US Congress in 1991 to extend protection to all US citizens
working overseas.
Equal employment opportunity laws are expressions of social values with re-
gard to employment and reflect the values of a society or country.58 In parts of the
Middle East, Africa, Asia and Latin America, women are perceived to have a lower
social status and are not universally employed. On the other hand, with the
increasing rate of female entry into the workforce, many Western countries have
introduced legislation to cover sex discrimination. Multinationals must be aware
of legislation and ensure subsidiary compliance where appropriate in selecting
expatriates.
Formal Informal
Source: H. Harris and C. Brewster, ‘The Coffee-Machine System: How International Selection Really Works’,
International Journal of Human Resource Management, Vol. 10, No. 3 (1999), p. 493. Reproduced with
permission.
the expatriate profile in Table 5-1, 27 per cent of expatriates were TCNs in the
2005 GMAC survey. While cost containment remains a major driver of localization
(that is, replacing expatriates with HCNs), staff availability is also a factor.60
Reflecting this global trend, the impact of the accompanying spouse/partner’s
career orientation upon the international assignment is an emerging area of re-
search. It seems that career orientation not only affects the couple’s willingness to
move, but also may negatively affect performance and retention in the foreign
location.61 Some multinationals are endeavoring to come up with solutions to the
dual-career challenge. These can be divided into two categories: finding alterna-
tive arrangements and making the assignments more ‘family-friendly’.
Family-friendly policies
Inter-company networking. Here the multinational attempts to place the accom-
panying spouse or partner in a suitable job with another multinational – sometimes
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Our final issue in terms of selection for international assignments is related to gen-
der. The typical expatriate tends to be male: 23 per cent in the GMAC-GRS 2005
survey were females, 14 per cent in the ORC 2002 survey. The authors of both
these surveys make the point that the proportion of females is increasing. For ex-
ample, the ORC report compares the 2002 situation to that of their 1992 survey
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where only 5 per cent of expatriates were female. One can go further back to a
1984 article, in which Adler63 reported a survey of international HR practices in
over 600 US and Canadian companies that found only 3 per cent of the 13 338 ex-
patriates identified were female. She found that female expatriates tended to be
employed by companies with over 1 000 employees in the banking, electronics,
petroleum and publishing industries. It has been argued that as the proportion of
women in the domestic workforce continues to increase, and as international ex-
perience becomes an essential criterion for career progression within multination-
als, we will see more international managers who are female.
Over the past decade or so, researchers have attempted to discover why so
few expatriates are female. Is it because they were unwilling to relocate? Is it
attitudinal? Does it reflect a somewhat externalized belief that men in some cul-
tures, such as certain Asian countries, do not like reporting to female managers,
particularly foreign women, and therefore women should not be posted over-
seas, creating what has been referred to as ‘the glass border that supports the
glass ceiling’.
A number of studies challenge some of the attitudes regarding the suitability of
females for international assignments. For example, Stroh, Varma and Valy-
Durbin64 found that US and Canadian women are interested in and likely to
accept international assignments, though there are variations between those
with children and those without. However the women in this study tended to
believe that their firms were hesitant to ask them to accept an international
assignment, though supervisors (whether male or female) did not necessarily
share that belief. Further, performance of female expatriates was found initially
to be affected by host-country prejudice regarding the role of women in certain
countries – considered as culturally tough assignment locations. However, the
longer the women were on such assignments, the less they perceived that preju-
dice was a barrier to effectiveness. Caligiuri and Tung,65 in their study of female
and male expatriates in a US-based multinational found that females can perform
equally as well as their male counterparts regardless of a country’s attitude toward
women in managerial positions.
Taking a different approach in her study of Austrian female expatriates,
Fischlmayr66 used the concepts of external and self-established barriers to explore
why women are under-represented in international assignments. These are listed in
Table 5-3.
Through 21 interviews with HR managers and female expatriates in Austrian
multinationals from various industries and positions, Fischlmayr found that atti-
tudes of HR directors were a major barrier to the selection of female expatriates,
though self-established barriers were also very strong. Females in Austrian compa-
nies often had to specifically request an international assignment whereas their
male colleagues were required to take international assignments. Further, some
women regarded that their age was decisive in terms of others’ perceptions and ex-
pectations about their behavior. The older the woman, the easier it is. Fischlmayr
concludes that women are partly to blame for their under-representation.
Mayrhofer and Scullion67 report on the experiences of male and female ex-
patriates in the German clothing industry. They found that women were sent
into a diverse number of countries, including those with an Islamic influence.
Overall, there were few differences in the experiences of both gender groups,
though female expatriates placed more value on integration of spouse/family
issues prior to and during the assignment than did the males in the sample.
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Source: Based on the literature reviewed in I.C. Fischlmayr, ‘Female Self-Perception as Barrier to International
Careers?’, International Journal of Human Resource Management, Vol. 13, No. 5 (2002), pp. 773–83.
Summary
This chapter has addressed key issues affecting recruitment and selection for
international assignments. We have covered:
G Four myths related to the concept of a global manager: that there is a
universal approach to management; that people can acquire multicultural
adaptability and behaviors; that there are common characteristics successful
international managers share; and that there are no impediments to
mobility.
G The debate surrounding the definition and magnitude of expatriate
failure.
G Cultural adjustment and other moderating factors affecting expatriate
intent to stay and performance. These included duration of the assignment,
willingness to move and work-related factors.
G Individual and situational factors to be considered in the selection
decision. Evaluation of the common criteria used revealed the difficulty
of selecting the right candidate for an international assignment and the
importance of including family considerations in the selection process.
G Dual career couples as a barrier to staff mobility, and the techniques
multinationals are utilizing to overcome this constraint.
G Female expatriates and whether they face different issues to their male
counterparts.
It is also clear that, while our appreciation of the issues surrounding expa-
triate recruitment and selection has deepened in the past 30 years, much re-
mains to be explored. The field is dominated by US research into predomi-
nantly US samples of expatriates, though there has been an upsurge in
interest from European academics and practitioners. Will the factors affect-
ing the selection decision be similar for multinationals emerging from
countries such as China and India? If more multinationals are to encourage
subsidiary staff to consider international assignments as part of an intra-
organizational network approach to management, we will need further
understanding of how valid the issues discussed in this chapter are for all
categories of staff from different country locations. It is apparent, though,
that staff selection remains critical. Finding the right people to fill positions,
particularly key managers – whether PCN, TCN or HCN – can determine in-
ternational expansion. However, effective recruitment and selection is only
the first step.
Discussion Questions
1 What is the difference between a global manager and a global mindset?
2 Should multinationals be concerned about expatriate failure? If so, why?
3 What are the most important factors involved in the selection decision?
4 Are female expatriates different?
5 Discuss the proposition that most expatriate selection decisions are made
informally, as suggested by the ‘coffee-machine’ solution.
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Further Reading
Boudreau, J., Ramstad, P. and Dowling, P.J. (2003). ‘Global Talentship: Toward a Decision Science
Connecting Talent to Global Strategic Success’, in W.H. Mobley and P.W. Dorfman (eds), Advances in
Global Leadership, Vol. 3, Oxford: Elsevier Science, pp. 63–99.
International Studies of Management & Organization (2004). Special issue on Expatriation in the
New Millenium, guest ed. Moshe Banai, 34(3).
Scullion, H. and Collings, D. (eds) (2006). Global Staffing, London: Routledge.
Tarique, I., Schuler, R. and Gong, Y. (2006). ‘A Model of Multinational Enterprise Subsidiary Staffing
Composition’, International Journal of Human Resource Management, 17(2): 207–24.
16 M.E. Mendenhall and G. Oddou, ‘The Overseas Assignment: A Practical Look’, Business Horizons
(September–October, 1988), pp. 78–84.
17 M. Mendenhall and G. Oddou, ‘The Dimensions of Expatriate Acculturation: A Review’, Academy
of Management Review, Vol. 10 (1985) pp. 39–47.
18 Tung, ‘Selection and Training Procedures’.
19 Ibid.
20 Focus Japan, ‘Tanshin Funin: Bachelors in Exile’, December 1990, p. 4.
21 J. Selmer, B.P. Ebrahimi and L. Mingtao, ‘Career Management of Business Expatriates from China’,
International Business Review, Vol. 11, No. 1 (2002), pp. 17–33.
22 For a review and assessment of the U-Curve, see J.S. Black and M. Mendenhall, ‘The U-Curve
Adjustment Hypothesis Revisited: A Review and Theoretical Framework’, Journal of
International Business Studies, Vol. 22, No. 2 (1991), pp. 225–47.
23 H. De Cieri, P.J. Dowling and K.F. Taylor, ‘The Psychological Impact of Expatriate Relocation on
Partners’, International Journal of Human Resource Management, Vol. 2, No. 3 (1991),
pp. 377–414; M. Kauppinen, Antecedents of Expatriate Adjustment: A Study of Finnish
Managers in the United States (Helsinki: Helsinki School of Economics Press, 1994).
24 Black and Mendenhall, ‘The U-Curve Adjustment Hypothesis Revisited’.
25 J.S. Black and G.K. Stephens, ‘The Influence of the Spouse on American Expatriate Adjustment
and Intent to Stay in Pacific Rim Overseas Assignments’, Journal of Management, Vol. 15, No. 4
(1989), pp. 529–44. See also, M. Kauppinen, Antecedents of Expatriate Adjustment, for support
of this finding.
26 Tung, ‘Selection and Training Procedures’.
27 J.M. Brett and L.K. Stroh, ‘Willingness to Relocate Internationally’, Human Resource
Management, Vol. 34, No. 3 (1995), pp. 405–24.
28 Hamill, ‘Expatriate Policies in British Multinationals’.
29 P.J. Dowling and D. Welch, ‘International Human Resource Management’. One US personnel
director interviewed by the authors pointed out that attributing expatriate recall to ‘failure of
spouse to adjust’ was at times a simplistic explanation. He postulated that, apart from the
probability of the expatriate blaming his wife for his own failure to adjust, some astute spouses
may see the expatriate’s poor performance and trigger the early recall to limit damage to the
expatriate’s career.
30 H.B. Gregersen and J.S. Black, ‘A Multifaceted Approach to Expatriate Retention in International
Assignments’, Group & Organization Studies, Vol. 15, No. 4 (1990), pp. 461–85.
31 M.S. Shaffer, D.A. Harrison and K.M. Gilley, ‘Dimensions, Determinants, and Differences in the
Expatriate Adjustment Process’, Journal of International Business Studies, Vol. 30, No. 3 (1999),
pp. 557–81.
32 M.C. Bolino and D.C. Feldman, ‘Increasing the Skill Utilization of Expatriates’, Human Resource
Management, Vol. 39, No. 4 (2000), pp. 367–79.
33 See for example M. Birdseye and J. Hill, ‘Individual, Organizational/Work and Environmental
Influences on Expatriate Turnover Tendencies: An Empirical Study’, Journal of International
Business Studies, Vol. 26, No. 4 (1995), pp. 787–813; and E. Naumann, “Organizational
Predictors of Expatriate Job Satisfaction”, Journal of International Business Studies, Vol. 24,
No. 1 (1993), pp. 61–79.
34 M. Kraimer, S.J. Wayne and R.A. Jaworski, ‘Sources of Support and Expatriate Performance: The
Mediating Role of Expatriate Adjustment’, Personnel Psychology, Vol. 54 (2001), pp. 71–92.
35 A.L. Hixon, ‘Why Corporations Make Haphazard Overseas Staffing Decisions’, Personnel
Administrator, Vol. 31, No. 3 (1986), pp. 91–4; M.E. Mendenhall, E. Dunbar and G. Oddou,
‘Expatriate Selection, Training and Career-Pathing: A Review and a Critique’, Human Resource
Planning, Vol. 26, No. 3 (1987), pp. 331–45; J. McEnery and G. DesHarnais, ‘Culture Shock’,
Training and Development Journal, Vol. 44, No. 4 (1990), pp. 43–7; I. Björkman and M. Gertsen,
‘Selecting and Training Scandinavian Expatriates: Determinants of Corporate Practice’,
Scandinavian Journal of Management, Vol. 9, No. 2 (1993), pp. 145–64. E. Marx, International
Human Resource Practices in Britain and Germany; Price Waterhouse (eds), International
Assignments: European Policy and Practice (1997).
36 P. Caligiuri, ‘The Big Five Personality Characteristics as Predictors of Expatriate’s Desire to
Terminate the Assignment and Supervisor-rated Performance’, Personnel Psychology, Vol. 53
(2000), pp. 67–88.
37 M.A. Shaffer and D.A. Harrison, ‘Forgotten Partners of International Assignments: Development
and Test of a Model of Spouse Adjustment’, Journal of Applied Psychology, Vol. 86, No. 2 (2001),
pp. 238–54.
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61 G.K. Stephens and S. Black, ‘The Impact of Spouse’s Career-Orientation on Managers during
International Transfers’, Journal of Management Studies, Vol. 28, No. 4 (1991), p. 425.
62 The Conference Board, Managing Expatriates’ Return, Report Number 1148-98-RR (New York:
The Conference Board, 1996).
63 N.J. Adler, ‘Women in International Management: Where Are They?’, California Management
Review, Vol. 26, No. 4 (1984), pp. 78–89.
64 L.K. Stroh, A. Varma and S.J. Valy-Durbin, ‘Why are Women Left at Home: Are They Unwilling
to Go on International Assignments?’, Journal of World Business, Vol. 35, No. 3 (2000),
pp. 241–55.
65 P.A. Caligiuri and R.L. Tung, ‘Comparing the Success of Male and Female Expatriates from a
US-based Multinational Company’, International Journal of Human Resource Management,
Vol. 10, No. 5 (1999), pp. 763–82.
66 I.C. Fischlmayr, ‘Female Self-Perception as Barrier to International Careers?’, International
Journal of Human Resource Management, Vol. 13, No. 5 (2002), pp. 773–83.
67 W. Mayrhofer and H. Scullion, ‘Female Expatriates in International Business: Empirical Evidence
from the German Clothing Industry’, International Journal of Human Resource Management,
Vol. 13, No. 5 (2002), pp. 815–36.
68 N.K. Napier and S. Taylor, ‘Experiences of Women Professionals Abroad: Comparisons Across
Japan, China and Turkey’, International Journal of Human Resource Management, Vol. 13,
No. 5 (2002), pp. 837–51.