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International Business People

  Sent by employers to work and live
          temporarily abroad
Similar Psychologically to the Sojourn
• Work has finite limit
• Clear assignments that they are expected to
  finish
• Must be able to interact successfully with local
  counterparts to achieve goals
• Will experience dislocation associated with
  unfamiliar cultural settings
• Career path may be affected by assignment
The expatriate experience--studies
    managerial/professional roles
• Provide human link in international trade
• Effectiveness has a direct link to
  international commerce
• Sojourn group most likely to receive pre-
  departure training, cultural orientation
• Undergo psychological assessments as
  part of selection process
Topics specific to expat experience
• Work-related cognitive styles/responses
  (negotiations, influencing, leading)
• Managerial practices do not easily cross
  cultural boundaries
• Role of the spouse
• Re-entry process, reintegration
• Problems specific to female expats
• Inpatriation

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Expatriation Key Success Factors
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This document discusses key factors for successful expatriate assignments. It begins by defining expatriate failure as an early, unplanned return or an ineffective overseas posting. Research shows failure rates range from 10-50% depending on the destination. There are three types of failures - early termination, an unprofitable assignment, or lack of support leading to an employee leaving the company. The document then examines reasons for failure, including individual factors like lack of adaptability or going abroad for the wrong reasons, as well as family pressures. Work factors include poor selection criteria, lack of support, and bad job matches. Finally, the document outlines key success factors such as comprehensive selection processes, relevant training for expatriates and spouses,

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This document discusses the importance of diversity and inclusion for employee engagement. It argues that organizations that embrace diversity and inclusion through a long-term strategic effort will see benefits like improved performance, problem solving, recruitment costs and employee well-being. However, many organizations still face barriers to truly embedding diversity and inclusion in their culture and day-to-day operations. The document provides recommendations for overcoming these barriers, including by putting diversity and inclusion at the center of organizational strategy, helping managers build inclusive teams, giving employees a voice, and demonstrating integrity in sustaining an inclusive culture.

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Cultural Distance
• Role is evident in ABC components
• Affects how people feel about life
  and work abroad
• Adeptness in realizing
  personal/professional goals
• Work-related perceptions and
  decisions
Principle problems derived from North
 American practices and assumptions
•   Flexible working hours
•   Consultative leadership style
•   Egalitarian interpersonal relationships
•   Emphasis on task achievement
•   Direct performance feedback
•   Reliance on written rules
•   rewards
Principle problems (cont.)
• Negotiation practices (rational vs emotional
  appeals)
• Selection, recruitment and advancement
  based on merit
• Psychological contracts and formal
  relationships, ‘a fair days work for a fair day’s
  pay’
• Right of worker and employer to break
  contract
“Nobody can think globally.”
         (Hofstede, 1998)
• Problematic for expat managers who
  are expected to put into effect
  company-wide policies and practices
  that may be lost on
  subsidiaries, changes to
  accommodate may dilute corporate
  culture/centralization

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International assignment failures can be costly for companies. Common reasons for failure include issues with the expatriate's personality, family pressures, lack of cultural skills, and poor living/working conditions. To reduce failure rates, companies should provide realistic previews, careful screening, good orientation, benefits, fair evaluations, and shorten assignment lengths. Failure rates vary by country but are typically 10-40% for US firms and less than 10% for Japanese firms. Causes of failure also differ such as inability to adjust or spouse/family problems. Proper selection, training, support, and commitment can help manage expatriate failure.

Heterogeneous work groups
• More cultural distance among workers has
  adverse affects on group performance, more
  difficult to manage
• Less interpersonal harmony, increased stress
  and turnover
• Advantages include more creativity (learning
  how to manage diverse groups may provide
  competitive advantage)
“Would you trust your foreign
            manager?”
• Trust between managers and
  supervisors was greater in
  homogeneous than heterogeneous
  work settings (Banai & Reisel, 1999)
• Increases with more cultural distance
Leadership Style
• Authoritarian/autocratic vs
  participative/democratic (leaders make
  all decisions vs share power with
  subordinates)
• Task-oriented vs people-oriented styles
  (structure vs consideration)
• Contingency theories (ignores
  characteristics or personality of the
  leader)
Transactional vs Transformational
        Leadership (Bass, 1997)
• Makes explicit reference to characteristics of
  the leader and leader-follower relationship
• Transactional leadership based on exchange
  principle (rewards for compliance)
• Transformational leadership based on ability
  of a leader to motivate followers to work for
  goals that go beyond self-interest for benefit
  of the group, inspire followers

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Transformational Leaders
• According to Bass, transformational
  leaders are more effective than leaders
  who follow contingent-reward strategy
• Advantageous across cultures
• Transcends organizational boundaries
Collectivist Values
• Some evidence that transformational
  leadership is consistent with collectivist
  values, whereas individualist values are more
  in line with transactional approach
• High power distance makes employees more
  likely to accept their leaders’ vision
• Some studies support the idea that
  individualists respond better to styles that are
  consistent with cultural orientations
Work performance and Satisfaction
• Recent study by Eylon and Au (1999) looked at
  high power distance (Asian) and low power
  distance (Northern European, Canadian)
  among ‘empowered’ workers
• All participants were more ‘satisfied’ when
  working under empowered circumstances, but
  high-power distance empowered workers
  performed less well than empowered, low
  power-distance workers
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• Western idea that workers who are given
  more freedom in decision-making will increase
  productivity and satisfaction
• Similar to another modern trend, ‘semi-
  autonomous work groups’ (organizational
  structures with flattened hierarchies)—highly
  effective in the right circumstances, but may
  be counterproductive in some cultures

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Joint ventures in China
• ‘China fever,’ many joint ventures have been
  failures in financial terms (only 44% report
  meeting profit targets)
• Cultural differences play a major role in
  exacerbating market-related difficulties such
  as guanxi relationships that are based on
  mutual trust and willingness to enter into long
  term commercial relationships
Guanxi
• Key element for successful commercial
  transactions in China
• Westerners regard a business relationship as
  short-term transactions where each party tries
  to maximize its benefits
• Even if guanxi is accounted for, ‘outsider
  status of Western companies may affect
  success
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• Psychological literature emphasizes
  interpersonal and cross-cultural skills as key
  determinants of success, but technical ability
  and job performance continue to be major
  selection criteria
• ‘Coffee-machine system’ refers to candidates
  being selected based on personal
  recommendations
Motivation to undertake expat
            assignments
• The decision to send executives abroad is
  often made on an ad-hoc basis dictated
  by market forces rather than staff career
  development, motives of sojourners are
  largely ignored, and their willingness to
  go abroad taken for granted (Spiess and
  Wittmann, 1999)

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Expatriate Adjustment
• Cultural distance
• Extent of social support
• Actual or perceived treatment by host
  society
• Extent of sojourn experience contributing
  to career advancement
Cultural Distance
• Western expats based in Europe experience
  fewer difficulties than those working in Africa
• German managers in U.S. report greater
  cultural awareness, knowledge and work
  satisfaction than their American counterparts
  in Japan
• Mangers posted to similar cultures are less
  sensitive to differences that do exist and may
  attribute problems to personal deficiencies
Host Attitudes
• Greater perceived host ethnocentrism
  (measured by items reflecting perceived
  cultural superiority and intolerance) was
  negatively associated with work
  adjustment and commitment to the local
  branch of the organization (Florkowski
  and Fogel, 1999)
Expats Abroad
• Between 20 and 50% return prematurely, a
  financial burden on companies
• ‘realistic job interview’ or preview, meant to
  alert applicants to negative and positive
  aspects of the job are not in regular use with
  respect to international assignments

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Expatriate Women
• Women are under-represented in expat
  assignments due to myths that inhibit women
  from being offered overseas assignments such as
  assumptions by managers that women do not
  want to work overseas (Adler, 1977)
• Studies show a reluctance by both men and
  women when cultural distance is high (women
  reluctant to accept assignments in Vietnam, Saudi
  Arabia and Indonesia) Kogut and Singh, 1988
Expatriate Women
• Both men and women are equally successful
  but adjustment is to some extent affected by
  the work values of host culture
• Married females are better adjusted than
  single females
• Company support has significant effect
• Women in higher level positions report more
  positive experiences
Repatriation
• Up to 80% of expats suffer culture shock
  during repatriation. Adler (1977) found that 1
  in 5 employees want to leave organization
  after returning; less than half receive
  promotions; two-thirds feel sojourn had an
  adverse affect on careers; nearly half believe
  their re-entry position is less satisfying than
  overseas assignment
• Expectations and outcomes strongly linked
Inpatriation
• Employing inpatriate managers is advantageous
  based on their knowledge of local business; can
  serve as informal mentors to expat managers;
  provide local perspectives on business plans;
  better position to communicate with local
  suppliers and government officials; less expensive
• MNC reluctant to hire foreign managers based on
  desire to maintain tight control, but the future
  will see steady growth of inpatriation

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This document summarizes a workshop aimed at helping international graduates adjust to the Canadian workplace. The workshop covered defining culture and comparing Canadian culture to other countries using Hofstede's cultural dimensions. It also addressed adapting to culture shock, Canadian workplace expectations, and transitioning from school to work. Evaluation results showed participants felt more prepared to assess workplace culture and manage their careers after attending. Next steps included following up with participants and expanding the workshop's reach.

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International business people

  • 1. International Business People Sent by employers to work and live temporarily abroad
  • 2. Similar Psychologically to the Sojourn • Work has finite limit • Clear assignments that they are expected to finish • Must be able to interact successfully with local counterparts to achieve goals • Will experience dislocation associated with unfamiliar cultural settings • Career path may be affected by assignment
  • 3. The expatriate experience--studies managerial/professional roles • Provide human link in international trade • Effectiveness has a direct link to international commerce • Sojourn group most likely to receive pre- departure training, cultural orientation • Undergo psychological assessments as part of selection process
  • 4. Topics specific to expat experience • Work-related cognitive styles/responses (negotiations, influencing, leading) • Managerial practices do not easily cross cultural boundaries • Role of the spouse • Re-entry process, reintegration • Problems specific to female expats • Inpatriation
  • 5. Cultural Distance • Role is evident in ABC components • Affects how people feel about life and work abroad • Adeptness in realizing personal/professional goals • Work-related perceptions and decisions
  • 6. Principle problems derived from North American practices and assumptions • Flexible working hours • Consultative leadership style • Egalitarian interpersonal relationships • Emphasis on task achievement • Direct performance feedback • Reliance on written rules • rewards
  • 7. Principle problems (cont.) • Negotiation practices (rational vs emotional appeals) • Selection, recruitment and advancement based on merit • Psychological contracts and formal relationships, ‘a fair days work for a fair day’s pay’ • Right of worker and employer to break contract
  • 8. “Nobody can think globally.” (Hofstede, 1998) • Problematic for expat managers who are expected to put into effect company-wide policies and practices that may be lost on subsidiaries, changes to accommodate may dilute corporate culture/centralization
  • 9. Heterogeneous work groups • More cultural distance among workers has adverse affects on group performance, more difficult to manage • Less interpersonal harmony, increased stress and turnover • Advantages include more creativity (learning how to manage diverse groups may provide competitive advantage)
  • 10. “Would you trust your foreign manager?” • Trust between managers and supervisors was greater in homogeneous than heterogeneous work settings (Banai & Reisel, 1999) • Increases with more cultural distance
  • 11. Leadership Style • Authoritarian/autocratic vs participative/democratic (leaders make all decisions vs share power with subordinates) • Task-oriented vs people-oriented styles (structure vs consideration) • Contingency theories (ignores characteristics or personality of the leader)
  • 12. Transactional vs Transformational Leadership (Bass, 1997) • Makes explicit reference to characteristics of the leader and leader-follower relationship • Transactional leadership based on exchange principle (rewards for compliance) • Transformational leadership based on ability of a leader to motivate followers to work for goals that go beyond self-interest for benefit of the group, inspire followers
  • 13. Transformational Leaders • According to Bass, transformational leaders are more effective than leaders who follow contingent-reward strategy • Advantageous across cultures • Transcends organizational boundaries
  • 14. Collectivist Values • Some evidence that transformational leadership is consistent with collectivist values, whereas individualist values are more in line with transactional approach • High power distance makes employees more likely to accept their leaders’ vision • Some studies support the idea that individualists respond better to styles that are consistent with cultural orientations
  • 15. Work performance and Satisfaction • Recent study by Eylon and Au (1999) looked at high power distance (Asian) and low power distance (Northern European, Canadian) among ‘empowered’ workers • All participants were more ‘satisfied’ when working under empowered circumstances, but high-power distance empowered workers performed less well than empowered, low power-distance workers
  • 16. Self-managing teams • Western idea that workers who are given more freedom in decision-making will increase productivity and satisfaction • Similar to another modern trend, ‘semi- autonomous work groups’ (organizational structures with flattened hierarchies)—highly effective in the right circumstances, but may be counterproductive in some cultures
  • 17. Joint ventures in China • ‘China fever,’ many joint ventures have been failures in financial terms (only 44% report meeting profit targets) • Cultural differences play a major role in exacerbating market-related difficulties such as guanxi relationships that are based on mutual trust and willingness to enter into long term commercial relationships
  • 18. Guanxi • Key element for successful commercial transactions in China • Westerners regard a business relationship as short-term transactions where each party tries to maximize its benefits • Even if guanxi is accounted for, ‘outsider status of Western companies may affect success
  • 19. Selecting International Managers • Psychological literature emphasizes interpersonal and cross-cultural skills as key determinants of success, but technical ability and job performance continue to be major selection criteria • ‘Coffee-machine system’ refers to candidates being selected based on personal recommendations
  • 20. Motivation to undertake expat assignments • The decision to send executives abroad is often made on an ad-hoc basis dictated by market forces rather than staff career development, motives of sojourners are largely ignored, and their willingness to go abroad taken for granted (Spiess and Wittmann, 1999)
  • 21. Expatriate Adjustment • Cultural distance • Extent of social support • Actual or perceived treatment by host society • Extent of sojourn experience contributing to career advancement
  • 22. Cultural Distance • Western expats based in Europe experience fewer difficulties than those working in Africa • German managers in U.S. report greater cultural awareness, knowledge and work satisfaction than their American counterparts in Japan • Mangers posted to similar cultures are less sensitive to differences that do exist and may attribute problems to personal deficiencies
  • 23. Host Attitudes • Greater perceived host ethnocentrism (measured by items reflecting perceived cultural superiority and intolerance) was negatively associated with work adjustment and commitment to the local branch of the organization (Florkowski and Fogel, 1999)
  • 24. Expats Abroad • Between 20 and 50% return prematurely, a financial burden on companies • ‘realistic job interview’ or preview, meant to alert applicants to negative and positive aspects of the job are not in regular use with respect to international assignments
  • 25. Expatriate Women • Women are under-represented in expat assignments due to myths that inhibit women from being offered overseas assignments such as assumptions by managers that women do not want to work overseas (Adler, 1977) • Studies show a reluctance by both men and women when cultural distance is high (women reluctant to accept assignments in Vietnam, Saudi Arabia and Indonesia) Kogut and Singh, 1988
  • 26. Expatriate Women • Both men and women are equally successful but adjustment is to some extent affected by the work values of host culture • Married females are better adjusted than single females • Company support has significant effect • Women in higher level positions report more positive experiences
  • 27. Repatriation • Up to 80% of expats suffer culture shock during repatriation. Adler (1977) found that 1 in 5 employees want to leave organization after returning; less than half receive promotions; two-thirds feel sojourn had an adverse affect on careers; nearly half believe their re-entry position is less satisfying than overseas assignment • Expectations and outcomes strongly linked
  • 28. Inpatriation • Employing inpatriate managers is advantageous based on their knowledge of local business; can serve as informal mentors to expat managers; provide local perspectives on business plans; better position to communicate with local suppliers and government officials; less expensive • MNC reluctant to hire foreign managers based on desire to maintain tight control, but the future will see steady growth of inpatriation