Jan Selmer, Jakob Lauring, Ling Eleanor Zhang and Charlotte Jonasson
In this chapter, we focus on expatriate CEOs who are assigned by the parent company to work in a subsidiary and compare them to those who themselves have initiated to work abroad…
Abstract
Purpose
In this chapter, we focus on expatriate CEOs who are assigned by the parent company to work in a subsidiary and compare them to those who themselves have initiated to work abroad as CEOs. Since we do not know much about these individuals, we direct our attention to: (1) who they are (demographics), (2) what they are like (personality), and (3) how they perform (job performance).
Methodology/approach
Data was sought from 93 assigned expatriate CEOs and 94 self-initiated expatriate CEOs in China.
Findings
Our findings demonstrate that in terms of demography, self-initiated CEOs were more experienced than assigned CEOs. With regard to personality, we found difference in self-control and dispositional anger: Assigned expatriate CEOs had more self-control and less angry temperament than their self-initiated counterparts. Finally, we found assigned expatriate CEOs to rate their job performance higher than self-initiated CEOs.
Originality/value
Although there may not always be immediate benefits, career consideration often plays a role when individuals choose whether to become an expatriate. For many years, organizations have used expatriation to develop talented managers for high-level positions in the home country. Recently, however, a new trend has emerged. Talented top managers are no longer expatriated only from within parent companies to subsidiaries. Self-initiated expatriates with no prior affiliation in the parent company are increasingly used to fill top management positions in subsidiaries.
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I build on a strong foundation of prior studies about expatriate compensation in general to provide an overview of changes in expatriate compensation, from home- to host-based…
Abstract
Purpose
I build on a strong foundation of prior studies about expatriate compensation in general to provide an overview of changes in expatriate compensation, from home- to host-based approaches, during the past 10 years.
Methodology/approach
Underpinned by findings from academic and practitioner literature, I review and integrate studies of expatriate compensation and global talent management to outline the challenges and opportunities home- and host-based compensation approaches present to MNEs.
Findings
Home-based compensation is becoming an outdated and overly expensive model that is often ineffective in moving MNEs’ global competitive advantage to where it needs to be, leaving host-based approaches as the only alternative. But the use of host-based “cheaper” compensation approaches can also lead to unintended outcomes for MNEs in terms of unforeseen opportunity costs (such as the loss of critical talent) arising from shortsighted compensation decisions.
Practical implications
I argue that expatriate compensation works best when it is not based on an employees’ home-country status but instead on the role that he or she performs locally. I suggest a host-based compensation approach — global compensation — that is based on the worth of the position rather than where the individual has come from. Such an approach is more equitable because it is performance-based thereby eliminating overpaying and perceived unfairness. It is much simpler to administer than home-based compensation because it represents an extension of most MNEs already existing domestic (home country) pay-for-performance model.
Originality/value
Despite more than 10 years of new compensation practices being implemented and reported by global mobility practitioners, very little has been studied or written by scholars about some of the recent changes in expatriate compensation over the past decade. The chapter addresses this gap in academic literature.
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F. H. Hamdan and P. J. Dowling
This paper, which is concerned with fluid‐structure interactionanalysis, is a sequel to our earlier paper which gave an introduction to thenumerical treatment of such systems. The…
Abstract
This paper, which is concerned with fluid‐structure interaction analysis, is a sequel to our earlier paper which gave an introduction to the numerical treatment of such systems. The paper is divided into five main sections. In the first two, a state‐of‐the‐art review on near‐field and far‐field fluid structure interaction is presented. In attempting to highlight where current research should be directed, only the most widely used computer codes are reviewed in the third section. Conclusions are presented in the fourth section.
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Since most literature on international performance appraisal is derived from Western MNCs, it is questionable whether the Western theories are equally powerful when applied to…
Abstract
Since most literature on international performance appraisal is derived from Western MNCs, it is questionable whether the Western theories are equally powerful when applied to other national contexts. This study develops the Chinese international performance appraisal model by exploring performance appraisal policies and practices and the associated factors in Chinese MNCs. It reveals that Chinese MNCs adopt different approaches towards different groups, particularly different nationalities and managerial status. The Chinese international performance appraisals are a mix of home and local appraisal systems, and a mix of traditional Chinese personnel management and modern Western HRM concepts. Moreover, Chinese international performance appraisal policies and practices are affected by various host‐contextual and firm‐specific factors, and there is also an interplay between international performance and other international human resource management activities.
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Haiying Kang and Jie Shen
South Korean multinational enterprises (MNEs) have developed rapidly since the late 1950s. This chapter investigates South Korean MNEs’ talent management, more specifically…
Abstract
Purpose
South Korean multinational enterprises (MNEs) have developed rapidly since the late 1950s. This chapter investigates South Korean MNEs’ talent management, more specifically international recruitment and selection policies and practices in their Chinese operations.
Methodology/approach
Using the snowball method through Chinese and Korean networks we recruited ten Korean MNEs to participate in this research. We conducted semi-structured interviews with key individuals within the organisations.
Findings
It reveals that South Korean MNEs tend to adopt the polycentric approach or a mixed approach of being polycentric and ethnocentric to international staffing, with the number of expatriates reducing gradually over time. South Korean MNEs adopt ‘one-way selection’ in recruiting and selecting expatriates and localise recruitment procedures and selection criteria for host-country nationals.
Originality/value
South Korean MNEs have paid inadequate attention to: firstly, expatriates’ career development; and secondly, personal and family issues emerging from expatriation and repatriation. This study highlights these issues.
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This paper is concerned with the treatment offluid‐structure interaction problems. The paper is divided in anumber of sections. The first is an introduction to thehistorical…
Abstract
This paper is concerned with the treatment of fluid‐structure interaction problems. The paper is divided in a number of sections. The first is an introduction to the historical background which lead to the numerical approach being used today. In the second the main factors affecting the numerical treatment of fluid‐structure interaction problems are identified. The next eight sections discuss each of these factors separately. Conclusions are drawn in section eleven.
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Gregory B. Fisher and Charmine E.J. Härtel
Expatriates who perform poorly in their overseas assignments cost multinational enterprises billions of dollars, damage firm reputation, disrupt relationships with local…
Abstract
Expatriates who perform poorly in their overseas assignments cost multinational enterprises billions of dollars, damage firm reputation, disrupt relationships with local nationals, and often exact a cost on expatriates’ psychological well‐being. International human resource management, which assumes the crucial responsibility of managing expatriates, should therefore be able to identify the competencies underlying effective expatriate performance, and evaluate crosscultural competence and overall effectiveness. Little research, however, is available on the role of culture in determining cross‐cultural effectiveness in expatriate‐client interactions. Moreover, it is rarely acknowledged that the customer impacts upon the effectiveness of such interactions. This paper provides a theoretical explication of the relationships between the factors of intercultural effectiveness, sociobiographical characteristics, and perceived task and contextual performance of individual managers operating in an intercultural environment. Qualitative research is conducted which, in general, demonstrates the importance of examining intercultural effectiveness from the respective cultural perspectives of the expatriate and the host country client. The findings elucidate the factors contributing to the intercultural effectiveness of Western expatriate managers operating in intercultural teams in Thailand.
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This article argues that critical realism (CR) offers an ontological position suited to understanding the dynamic relations between multinational companies (MNCs) and the complex…
Abstract
This article argues that critical realism (CR) offers an ontological position suited to understanding the dynamic relations between multinational companies (MNCs) and the complex political spaces within which they operate. After outlining the core assumptions of CR, the key arguments are elaborated through two case studies which focus on issues of staffing and expatriation. The first case concerns recent developments in the Middle East, highlighting the shifting reality of nationality-based definitions of staffing the MNC, and the second examines the internationalisation of Chinese firms, exploring the way MNCs restructure space to retain access to home-country advantages.
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John W Boudreau, Peter M Ramstad and Peter J Dowling
It is widely accepted that global competitive advantage frequently requires managing such complex situations where traditional organization and job structures are simply…
Abstract
It is widely accepted that global competitive advantage frequently requires managing such complex situations where traditional organization and job structures are simply insufficient. Increasingly, in order to create a flexible and integrated set of decisions that balance local flexibility with global efficiency, organizations must rely on more social, informal and matrix-based shared visions among managers and employees. Research on global strategic advantage, global organizational structures and even shared mindsets has suggested that dimensions of culture, product and function provide a valuable organizing framework. However, typical decisions about organization structure, HRM practices and talent often remain framed at such a high level as to preclude their solution. We maintain that there is often no logical answer to such questions as, “Should the sales force be local or global?” or “Should product authority rest with the countries or the corporate center?” However, we propose that embedding business processes or value chains within a Culture and Product matrix provides the necessary analytic detail to reveal otherwise elusive solutions. Moreover, by linking this global process matrix to a model that bridges strategy and talent, it is possible to identify global “pivotal talent pools,” and to target organizational and human resource investments toward those talent areas that have the greatest impact on strategic advantage. We demonstrate the Value-Chain, Culture and Product (VCCP) matrix using several examples, and discuss future research and practical implications, particularly for leadership and leadership development.