Expatriate Failure and The Costs Associated With It (E.g. Direct and Indirect Financial Costs
Expatriate Failure and The Costs Associated With It (E.g. Direct and Indirect Financial Costs
Expatriate Failure and The Costs Associated With It (E.g. Direct and Indirect Financial Costs
term versus long-term; those approaches that stressed the ‘business case’ for EO). However,
there is evidence that managing diversity can seem more appealing and inclusive, and can make
business sense by stressing the HR, performance and creativity benefits that can flow from well-
managed diversity.
Students might go on to show how diversity considerations can be part of every ER process (e.g.
recruitment, selection, HR planning, performance management, career and talent management),
and that the support of top management, training, and effective communication are all necessary
to make such a change happen. They should point out that awareness of the relevant equality and
human rights legislation and monitoring are as necessary to effective managing of diversity as
they are to EO.
Topic 5. What advice would you give Helen Gold? Clearly outline and justify your
recommendations for: recruitment, selection, induction?
Students should present a critical analysis of the case. One approach is to see it in terms of
expatriate failure and the costs associated with it (e.g. direct and indirect financial costs,
brand/reputation damage, loss of credibility with suppliers, distributors, customers and
government, career damage). It should the explore some of the issues associated with the failure,
beginning with recruitment. For example, was the need for such a post established through HR
planning activities? Was a thorough job analysis carried out, and a job description containing the
responsibilities, roles and duties of the job devised? Was a person specification drawn up
containing the requisite knowledge, skills, experience and other attributes devised? The case
suggests not: there was disagreement over whether an expatriate – parent-country national – was
necessary, or whether a local Chinese (host-country national) could have been employed. There
was little discussion of the purpose of the assignment (control, filling a post, development
experience, etc.) or whether a third-country national was preferable (e.g. an overseas Chinese
with language/cultural knowledge and skills). Students should discuss here the relative
advantages and disadvantages of each choice (e.g. cost, communication, local responsiveness,
global efficiency and standardisation, worldwide learning).
It appears from the case that an engineer with technical competence was sought (for ‘credibility’
reasons), but that the job required considerable management, administrative and marketing
experience, which Rick lacked (he had been a team leader). These expectations did not seem
fully communicated to Rick; if they had, and if he had seen a comprehensive job
description/person specification that spelt this out, he might not have applied, or might have
withdrawn his application. The selection process seems flawed also: only an interview seems to
have been used, with no psychometric tests or assessment-centre-type exercises used. If these
were used, the lack of flexibility/adaptability, and interpersonal/communication skills apparently
shown by Rick might have been identified. In addition, his motivation for the job could have
been explored further: did he have a genuine interest in it, was he interested in an international
assignment or in China, did he see it as fitting into his career plans, or was he merely looking for
a change, interested in travelling in China, or satisfying his wife’s interest in Chinese art? In
addition, if the person specification had specified language skills and previous experience in
China, Rick might not have gone through with his application, or might not have been selected.
With reference to induction, this also seems to have been poorly designed. Already brief from
the start, it was cut back further because of work overload, and seemed to focus not on the job
but on general cultural issues. No language training was instituted before or during the
assignment, and the various stakeholders (Rick, David, Kaijun, etc.) seemed to have different
expectations of what the job involved. There were no field visits arranged, nor did Rick have a
designated ‘mentor’ to facilitate the transition, either at company headquarters or in China.
Support facilities seemed poor, as did communication, with different expectations over e.g.
transport and housing for example, which should have been addressed in the induction. In
addition, given that many examples of expatriate failure involve a failure to adjust not by the
employee but also by the family, further attention should have been given to Hilda’s situation
(suitability, but also support, e.g. transport, housing, a local female mentor, language lessons).
Students should also discuss culture shock and adaptation problems, and ways of coping. The
differences between China and the UK should be discussed in terms of theoretical models such
as Trompenaars or Hofstede (e.g. the relative differences over individualism, power distance,
long-term orientation) and the problems these might cause, with reference to the case. The
‘passive’ coping style of Hilda and Rick (complaining, withdrawing etc.) should be contrasted
with more ‘active’ styles (mixing with locals, learning the language, etc.). Again, the company
role in this should also be mentioned (e.g. no mentor, and no cross-cultural or language training
was provided, though