Expatriate Failure

Powerful Essays
Expatriate Failure – Research Essay
With globalization and increasing competition, organizations are forced to expand beyond national boundaries. These international operations naturally gave birth to the need of expatriates, who goes to the foreign country with an intention of controlling the operations and to provide technical and administrative services. The expatriate job is highly demanding and sometimes very complicated due to differences between countries’ labour situation, culture, economic and legal systems. Studies undertaken in this area have shown that there is a high rate of failure among expatriates mainly because of their and their families’ inability to deal with the uncertainties associated with it(Lee,2007). Reasons for this failure can be improper selection criteria and mechanisms, lack of earlier international experience , cross cultural training ,individual factors, job related factors, home country situations, host country situations, and various other non-job related reasons( Black,et al,1991). These failures can, not only be detrimental to organization’s growth in overseas but also can create problems in the personal life of these elite executives.
This essay tries to investigate the reasons for the expatriate failure and suggest remedies to bring down the percentage of this evil or if possible completely eradicate it. Proper understanding of the term ‘expatriate failure’ will help in finding the reasons as well as to suggest remedies. According to Lee(2007), presently available literature lacks wider acceptance because ,expatriate failure is studied on the basis of only premature return and it fails to show the true picture of the extend of this vicious phenomenon. The use of this definition can be misleading and can cover up underlying issues, as it implies the completion of duration of expatriate tenure is a definite success and completely forgets the important factors like achieving performance objectives, repatriation difficulties



References: Black, J. S., & Mendenhall, M. (1990), Cross-cultural training effectiveness: A review and theoretical framework for future research. Academy of Management Review, 15, 113-136. Black, J. S., & Stephens, J. K. (1989), the influence of the spouse on American expatriate adjustment in overseas assignments. Journal of Management Science, 15, 529-544. Clarke, Chris (1997) Expat Gravy Train Runs OUT of Steam, Daily Mail (London) May 15 HRMagazine (2008) "Cultural intelligence Brief article (Book review)" Society for Human Resource Management PR Newswire (2001)"EXPERTS ADVISE INTERNATIONAL COMPANIES HOW TO CAPTURE RETURN ON EXPATRIATE INVESTMENTS. PR Newswire Association LLC, Retrieved October 24, 2010 from HighBeam Research: http://www.highbeam.com/doc/1G1-74934752.html Shaffer, M Stone, R. L, (1991), 'Expatriate Selection and Failure ', Human Resource Planning, 14(1): 9-18. Tung, R. L., (1987). 'Expatriate Assignments: Enhancing Success and Minimizing Failure ', Academy of Management Executive, 1 (2): 1 17-126 Zeira, Y and Banai, M

You May Also Find These Documents Helpful

  • Good Essays

    Expatriate Failure

    • 719 Words
    • 3 Pages

    Expatriate failure is defined as a posting that either ends prematurely or is considered ineffective by senior management. Mr. Tinu should be concerned about expatriate Failure because of the following factors resulting in Failure/ Non-completion of Cross border assignment:- Family Stress Most expatriate managers are challenged and excited to be in their new postings. They need to spend a lot of time at work since they are under pressure to adapt to the new culture and their overall responsibilities…

    • 719 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Expatriate Failure

    • 4064 Words
    • 17 Pages

    purpose of this assignment is to highlight the issues and challenges that are faced by expatriates in managing highly diversified cultural teams and the need for cultural intelligence to overcome these challenges that occur in their assignments. Also, the cost of failure of assignments, which result in lost opportunities for Multinational companies (MNC’s) in the particular country they operate in. These failures have resulted in the need of repertoires that can be used to successfully implement the…

    • 4064 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    Expatriate Failures

    • 1313 Words
    • 6 Pages

    EXPATRIATE FAILURES "The internationalization of business has proceeded at a rapid pace as the world has become a global economy."(Mathis, Jackson 2000) This is the very reason why companies now have the need for international executives. As all aspects of a business spread worldwide, so must the employees. An expatriate by definition is a home-county national, usually an employee of the firm, who is sent abroad to manage a foreign subsidiary. (Rodrigues, 2001) A successful expatriate generally…

    • 1313 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Expatriate Failure

    • 476 Words
    • 2 Pages

    compared, the income gap in favor of PCNs is often viewed Host-country Nationals Advantages: 1 Language and other barriers are eliminated This approach removes the need for expensive cultural awareness training program. The adjusting problems of expatriate managers are also avoided. 2 Hiring costs are reduced and no…

    • 476 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Executive Memorandum Re: Expatriate Success and Failure Under thriving globalization the success of expatriates is more crucial today than ever before. Even though exact expatriate failure rate is not available, it is essential that every expatriate succeeds on foreign assignment due to incurred cost for transfer, accommodation, salary, and trips home. Additional opportunity cost includes loss of future business and reputation in foreign community. The expatriate failure means either premature…

    • 2121 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    sending expatriate overseas to take precautions to ensure the success of the expatriate in effectively reaching his/her assigned goals. Expatriate failure rate is very high amongst U.S. managers (50%, APG Class Session #13) for many reasons. The failure of an expatriate can be very costly and time consuming for the companies who employ them. The question that needs to be answered is why expatriates fail so frequently and what can MNC's do to lower this failure rate and produce effective expatriate managers…

    • 1223 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Expatriates

    • 3175 Words
    • 13 Pages

    impact of cross cultural training on expatriate performance Executive Summary The aim of this report was to discuss and argue issues regarding managing expatriates in relation to ICHRM (International Comparative Human Resource Management). The main discussion was to see whether CCT (Cross-Cultural Training) has any effect on expatriate performance. The arguments that were drawn here, resolved around - issues involving the high failure rates of expatriates, - whether companies were doing something…

    • 3175 Words
    • 13 Pages
    Better Essays
  • Good Essays

    Expatriates

    • 569 Words
    • 3 Pages

    SLIDE Multinational companies continue to rely on international assignment (LA) practices in implementing their international business strategies. One of the main challenges in finding staff for these international postings is to cut the rising failure rate of those sent abroad. Why? In order to minimize the very high direct and indirect costs incurred when international assignees fail. The assessment factors for overseas postings should include 2 main areas: * Hard competences: technical…

    • 569 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Expatriate

    • 7355 Words
    • 22 Pages

    Managing MNC Expatriates through Crises: A Challenge for International Human Resource Management Abstract ------------------------------------------------- International crises experienced by multinational corporations include both the premature return of expatriates due to failed assignments and the poor retention of returned expatriates due to failed repatriation. To reduce the direct and indirect costs inherent with expatriate failure, multinational corporations are striving to improve their…

    • 7355 Words
    • 22 Pages
    Powerful Essays
  • Better Essays

    Expatriate Management

    • 1171 Words
    • 5 Pages

    Expatriate Management: An Article Review Brandi Lewis American Public Univeristy Peterson, R. B., Napier, N. K., & Shul-Shim, W. (2000). Expatriate management: A comparison of MNCs across four parent countries. Thunderbird International Business Review, 42(2), 145-166. Retrieved from http://search.proquest.com/docview/202784562?accountid=8289 With globalization comes the need for expatriates, and with expatriates comes the need for human resource management for those expatriates. This…

    • 1171 Words
    • 5 Pages
    Better Essays