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identify the problem presented in the case and offer a solution. Case analyses must utilize text material and international management concepts being studied to help generate practical solutions. It must it be in an essay form (Introduction, body paragraphs, conclusion)

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“Andreas Weber’s Reward for Success in an International Assignment; Case A” MGMT 360; International Management 1. Should Andreas go back to the position offered? 2. If Andreas accepts the job, what should his career plan be? 3. If he does not accept the job, what should he do instead? 4. Who is to blame for the current situation? What specific factors contributed to Andreas’ reentry problems? 5. What can an organization do to avoid the kinds of problems illustrated in this case? 6. From an HR perspective describe what would be a more systematic approach to repatriation planning and international career development? 7. Cite a minimum of 6 course concepts and ideas that are relevant in this case? For the exclusive use of A. Aljuwaybir, 2018. INS712 Andreas Weber’s Reward for Success in an International Assignment (A): A Return to an Uncertain Future 08/2014-5080 This case was prepared by Günter K. Stahl, Assistant Professor of Asian Business at INSEAD and Mark E. Mendenhall, J. Burton Frierson Professor of Leadership at the University of Tennessee. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Additional material about INSEAD case studies (e.g., videos, spreadsheets, links) can be accessed at cases.insead.edu. Copyright © 2003 INSEAD COPIES MAY NOT BE MADE WITHOUT PERMISSION. NO PART OF THIS PUBLICATION MAY BE COPIED, IN ANY FORM OR MEDIUM WHATSOEVER WITHOUT THE PERMISSION OF THE COPYRIGHT OWNER. STORED, TRANSMITTED, REPRODUCED OR DISTRIBUTED This document is authorized for use only by Aeshah Aljuwaybir in International Mgmt;Fall '18-1 taught by MOLLY BURKE, Dominican University - Illinois from Aug 2018 to Feb 2019. For the exclusive use of A. Aljuwaybir, 2018. Andreas Weber’s mind would not stop racing. Normally, an intense run in the evening had the effect of dissipating his worries, but tonight this did not work. The further he jogged along his standard route on the banks of the Hudson River, the more he could not get out of his mind the letter he knew he must write tomorrow. “How had it all come to this?” he wondered. This thought triggered his memory back seven years, to the initial event that had set in motion the process that led to his current trouble. Andreas’ Decision to Pursue an International Career Andreas remembered the occasion clearly; Herr Görner, the Managing Director, had walked into his office at the Frankfurt headquarters of his bank, and offered him the chance to participate in a company-wide international leadership development program. Herr Görner explained that the program involved an international assignment with the intention of fostering the professional development of young, aspiring managers. After their overseas assignments, the trainees would constitute a pool of internationally experienced young managers with the potential for senior management positions at corporate headquarters. Andreas accepted the offer on the spot, with pride. He had worked very hard since joining the bank and felt that his efforts had finally paid off. The program started with a one-week seminar at a leading business school in the United States. The CEO had flown in from Frankfurt, demonstrating the commitment of top management to this program. In his speech to the participants, the CEO stressed that the major challenge and “number one” priority for the bank in the future was globalization. He made it clear that international experience was a key value and a prerequisite for promotion into the ranks of senior management. Andreas felt confident that he had made the right decision in accepting the offer and in pursuing an international career. Shortly after the program started, an unexpected vacancy opened up in the bank’s New York branch and Andreas was asked if he was interested. He discussed the prospect of a three-year assignment to New York with his wife, Lina. The offer looked very attractive from all angles, and they quickly agreed that Andreas should accept it. Two months later, he was transferred to New York. Assignment New York: The First Year Andreas remembered the day of his arrival as if it were yesterday. He arrived at JFK Airport early in the afternoon. Since his only contact point about the job assignment was corporate HR in Frankfurt, he assumed that they had made all the necessary arrangements with the New York office for his arrival. However, no one came to the airport to pick him up. He took a taxi and went directly to the New York branch of the bank. When he arrived, he was not sure where he should go. He had not been informed about whom he should contact after his arrival, so he went straight to the office of the head of the corporate finance department where he was supposed to work. When he entered the office and told the secretary that he was the new manager from Germany, she looked at her notebook, shook her head, and told him that they were not expecting anybody. Confused, Andreas rushed to the HR department and soon found that several misunderstandings had occurred. First, it was not the corporate finance department but the credit department that had requested his transfer. Second, contrary to what Copyright © INSEAD 1 This document is authorized for use only by Aeshah Aljuwaybir in International Mgmt;Fall '18-1 taught by MOLLY BURKE, Dominican University - Illinois from Aug 2018 to Feb 2019. For the exclusive use of A. Aljuwaybir, 2018. he was told in Frankfurt, there was only a non-management position vacant. They were looking for a credit analyst, basically the same job that he had done in Germany. Andreas shook his head in reaction to the memory: “There I stood, in what was supposed to be my new office, with three pieces of luggage on the desk, and wondering whether I should stay or take the next plane home!” Why he decided to stay in New York, he could never quite figure out. In retrospect it was probably just a split second decision to make the best of the situation. The whirl of images of the next two months flashed across his memory: rushed days and nights trying to learn the ropes of a new office with new procedures, looking for a place to live, meeting new people, and exploring new places. Then a clear memory intervened the collage of memories of those first two months – Lina’s arrival. Lina, his wife, and their three-year-old daughter, AnneMarie, followed Andreas to New York two months after his arrival. They moved into a small house in the outskirts of New York. Lina knew New York pretty well, as she had worked there for a couple of months as an intern at a reinsurance company. She arrived excited to rediscover her favorite restaurants, art galleries and museums. Except for occasional attacks of homesickness, Lina was satisfied with her new life. The week after they had moved into their new house, they received a dinner invitation from a young married couple next door. To their surprise, their American neighbors quickly embraced the Webers. Since Lina was not able to get a work permit, she joined her new acquaintance in doing volunteer work at a local art museum. Anne-Marie spent every second afternoon at a local kindergarten, which gave Lina plenty of time to pursue her own interests. At the end of their first year in the United States, a second daughter, Elena, was born. By then, the Weber’s had already made several more new friends, both Americans and other expatriates. When the Webers stepped off the plane at JFK after their first home leave to Germany, it felt more like they were coming home than returning to a temporary assignment. Andreas’ Fast-Track Career as an Expatriate Professionally, things had gone extremely well during this time period. The New York branch of the bank had been right at the start of a boom-phase that lasted for several years. Throughout the boom, the bank’s staff increased significantly. After eight months of working in the back office, Andreas was promoted to supervisor of a group of credit analysts. Then, one year after his first promotion, a position opened up at the senior management level. The deputy head of the rapidly expanding corporate finance department – a German expatriate – had unexpectedly left for a job at one of their American competitors, and the bank had to fill his position with a manager who spoke fluent German, was familiar with the finance departments of a number of German and other European companies, and was instantly available. Andreas was asked if he was willing to extend his foreign service contract for another three years and accept the position as deputy head of the corporate finance department. After discussing it with Lina, Andreas accepted. In the fifth year of his assignment, Andreas made another step upward in his career. His boss retired, and Andreas was promoted to head of the corporate finance department. He was now one of five managing directors in the branch. When Andreas signed his new contract, it was Copyright © INSEAD 2 This document is authorized for use only by Aeshah Aljuwaybir in International Mgmt;Fall '18-1 taught by MOLLY BURKE, Dominican University - Illinois from Aug 2018 to Feb 2019. For the exclusive use of A. Aljuwaybir, 2018. agreed that he would stay with the New York branch of the bank for another three years and would then return to the bank’s German headquarters. These were warm memories, memories that somewhat buffered the intensity of Andreas’ frustration and anger over his current situation. But as he continued running, the warmth of the past dissipated into the turmoil of the present. “It all started with that promotion,” he muttered to himself. As head of the corporate finance department, Andreas’ professional and private lives had unexpectedly changed. He was now responsible for a huge area – his business activities no longer concentrated on North American subsidiaries of foreign-based companies, but included their headquarters in Europe and East Asia. In the first six months of his new job, Andreas had traveled almost 100,000 miles, mainly on business flights to Europe. His extensive traveling was hard on Lina. She felt alone, and was concerned about their children’s education. Their eldest daughter, Anne-Marie was now nine years old and had spent most of her life outside of Germany. Lina was also concerned about her missing out on a German high school education. Anne-Marie’s German language skills had gradually deteriorated over the last two years, and that troubled Lina as well. Their second daughter, Elena, was attending kindergarten, and except for the yearly home leave, she had no contact with other German children. Elena’s German was quite poor. In fact, both Anne-Marie and Elena considered themselves Americans. Lina also started to be more and more discontented with her life as a housewife. Obtaining a work permit in the United States remained impossible, and it was not easy for her to find new volunteer activities to quench her interests. To make things worse, Lina’s father fell ill and died in that same year, leaving her mother alone. Andreas remembered the long conversations he had had with Lina during this period of time, many of which were by telephone from hotel rooms in far away places. When he was home, they spoke often in the quiet of their living room, and on long walks – Andreas lost count of the multitude of times they had talked as they walked through the same park he was now running through. Andreas’ Dilemma: Staying in New York or Returning Home to an Uncertain Future “It was an extremely difficult situation,” Andreas remembered, “not so much for the children, but for Lina and I. … From a professional standpoint, my assignment to New York was the best thing that could ever happen to me: I worked in the financial center of the world; I loved my job, the freedom of being away from the bureaucracy at corporate headquarters, the opportunities to travel; I became a member of the senior management team at a very young age – impossible if I stayed in Germany. Personally, we were also happy: our children felt at home in New York; we were quickly embraced by our neighbors and the expatriate community; we had many friends… The question we continually wrestled with was: ‘Does it make sense to give all these up for a return to an uncertain future in Germany?’ In principle, the answer would clearly have been: ‘No’. But on a long-term basis, moving back to Germany appeared to be the best solution for our children. After all, we felt responsible for their future.” After several weeks of consideration and discussion, Lina and Andreas decided to move back to Germany. This was about a year ago. Immediately after the decision was made, Andreas Copyright © INSEAD 3 This document is authorized for use only by Aeshah Aljuwaybir in International Mgmt;Fall '18-1 taught by MOLLY BURKE, Dominican University - Illinois from Aug 2018 to Feb 2019. For the exclusive use of A. Aljuwaybir, 2018. contacted the bank’s corporate headquarters and informed the human resource executive in charge of international assignments about his decision. Three weeks later, Andreas received a short letter from him, stating that there were currently no positions available in Germany at his level. Part of the problem, Andreas was told, was due to the current economic downturn in Europe, but since several new branches were due to be opened in the Eastern part of Germany over the course of the next year, he was told that chances were good that the company would be able to find him a suitable return assignment within the next six months. Since then, Andreas had had several meetings with executives at corporate headquarters, as well as with managers of domestic branches of the bank, but he still had not been offered any reentry position. Lina gradually became discouraged. She had told her mother that they were coming home immediately after they made their decision to return to Germany, but 8 months had passed, and her mother kept asking when they were coming. Andreas’ parents were persistent in their queries as well. Finally, last week, Andreas received a telephone call from the corporate HR department, in which he was informed that they had found what they called a “challenging” return assignment. They offered him the position of deputy head of a medium-sized branch of the bank in the Eastern part of Germany. Andreas was told that a letter explaining the details of the position offer had already been sent. The Offer The memory of opening that letter and reading it, and the resulting emotions of anger, betrayal, disbelief, and frustration all came back to him. He stopped running, and sat down on a park bench alongside the jogging trail. “Not only will I earn little more than half the salary that I currently make in New York, I will not be able to use the skills and experiences that I gained during my overseas assignment, I will be out of touch with all the important decisions being made at headquarters, and on top of that, I will be posted to this God-forsaken place!” he thought, bitterly. With all the frustrations and anger welling up in his chest, Andreas thought, cynically, “The bank’s promotion policy – if there ever was any rational policy – is to punish those who are really committed to the organization. They assign you to one of those programs for high-fliers and send you abroad, but there is no career planning whatsoever. If there just happens to be a job vacant when you return, you are lucky. If not, they let you wait and wait and wait, until you finally accept the most ridiculous job offer. ... Their slogan that international experience is a key value and a prerequisite for promotion into the ranks of senior management is garbage! If you look at the actual promotion and career development practices in this organization, it becomes clear it’s only lip service…and lies! … In this bank, the better you perform overseas, the more you get screwed when you come back”. He began to wonder if he should accept the offer. Perhaps they should just stay in New York and make their home here. But then, images of Lina, Lina’s mother, Anne-Marie, Elena, and his parents, and all of their combined needs enveloped him. Leaning back on the park bench, he blankly stared down the path that would lead out of the park and into the street, and then home. Copyright © INSEAD 4 This document is authorized for use only by Aeshah Aljuwaybir in International Mgmt;Fall '18-1 taught by MOLLY BURKE, Dominican University - Illinois from Aug 2018 to Feb 2019. Ninth Edition 5-1 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To become familiar with the role of negotiation in implementing a firm’s strategy, and the various stakeholders who must be considered 2. To learn the stages of the negotiation process and how to prepare for crosscultural business negotiations 3. To gain insight into the various types of negotiating styles around the world 1. 5-2 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To recognize that managing negotiation requires learning about the culturally based behavioral differences, values, and agendas of the negotiating parties and how to build trust for successful negotiations 5. To learn the complexities of negotiating with the Chinese 6. To appreciate the variables in the decisionmaking process and understand the influence of culture on decision making 4. 5-3 Copyright ©2017 Pearson Education, Inc. Opening Profile: Facebook’s Continued Negotiations in China • Facebook has more than 1.4 billion active users as • • • • 5-4 of 2015; if it were a country, it would be the world’s third most populous country However, Facebook is banned in China for six years as of 2015, although many go around the restrictions China has substantial legal and regulatory complexities that have prevented entry If Facebook fails to manage global operations successfully, business may suffer Facebook is profiting by advertising for Chinese businesses in spite of the blockage of its primary activity Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To become familiar with the role of negotiation in implementing a firm’s strategy, and the various stakeholders who must be considered 5-5 Copyright ©2017 Pearson Education, Inc. Negotiations by Global Managers  Specific plans for strategies and for continuing operations  May also be faced with negotiating with government-owned companies  Managers must prepare; operational details must be negotiated: staffing, raw materials, repatriating profits, etc  Decision-making processes are key 5-6 Copyright ©2017 Pearson Education, Inc. Negotiation The process of discussion by which two or more parties aim for mutually acceptable agreement 5-7 Copyright ©2017 Pearson Education, Inc. Important Differences 1. Amount and type of preparation 2. Tasks vs. interpersonal relationships 3. General principles vs. specific issues 4. Number of people present and their influence 5-8 Copyright ©2017 Pearson Education, Inc. Stakeholders in Cross-Cultural Negotiation 5-9 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To learn the stages of the negotiation process and how to prepare for cross-cultural business negotiations 5-10 Copyright ©2017 Pearson Education, Inc. The Negotiation Process 5-11 Copyright ©2017 Pearson Education, Inc. Stage One: Preparation •Develop profile of counterparts. •Find out likely demands, team composition, and counterpart authority. •Choose a negotiation site. •British/French Chunnel negotiations 5-12 Copyright ©2017 Pearson Education, Inc. Stage Two: Relationship Building •Getting to know one’s contacts and building mutual trust •Non-task sounding •Use an intermediary. •“I have come as a mediator…” 5-13 Copyright ©2017 Pearson Education, Inc. Stage Three: Exchanging Task-Related Information • • Cultural differences remain an issue. The French enjoy debate and conflict. • Mexicans can be suspicious and indirect. • The Chinese ask many questions, but provide ambiguous information in return • 5-14 Copyright ©2017 Pearson Education, Inc. Show understanding of the other viewpoint Stage Four: Persuasion •Dirty tricks are in the eye of the beholder •False information •Ambiguous authority •Non-verbal messages •Individualism vs. Collectivism 5-15 Copyright ©2017 Pearson Education, Inc. Stage Five: Concessions and Agreement • Russians and Chinese start with extreme positions •Swedes start with what they will accept •Starting with extremes may be most effective •Linear vs. holistic •Importance of contracts 5-16 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To learn the complexities of negotiating with the Chinese. 5-17 Copyright ©2017 Pearson Education, Inc. Management Focus: Negotiating with the Chinese 5-18 Copyright ©2017 Pearson Education, Inc. Comparative Management in Focus: Negotiating with Chinese  Two problems: Chinese desire for details  Apparent insincerity   Importance of harmony Guanxi  Guanxihu networks   Two stages of  Saving face: Lien  Mien-tzu  5-19 Copyright ©2017 Pearson Education, Inc. Chinese negotiation Technical  Commercial  Comparative Management in Focus: Negotiating with Chinese  Some recommendations:  Practice patience  Accept prolonged stalemate  Refrain from exaggerated expectations  Establish a contact in China  Remember to save ‘face’ for everyone 5-20 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To gain insight into the various types of negotiating styles around the world 5-21 Copyright ©2017 Pearson Education, Inc. Comparison of Negotiation Styles Japanese North American Hide emotions Deal impersonally Subtle power Litigation, not plays conciliation Step-by-step Methodologic approach al organization Group good is Profit is the the aim aim 5-22 Copyright ©2017 Pearson Education, Inc. Latin American Emotionally passionate Great power plays Impulsive, spontaneous Group/ individual good is aim Successful Negotiators: Americans ❑ Knows when to compromise, but stands firm at ❑ ❑ ❑ ❑ 5-23 the beginning. Accept compromises only when there is a deadlock Refuses to make concessions beforehand and keeps his/hers cards close to chest Keeps a maximum of options open before negotiation, operate in good faith States his/her position as clearly as possible, respects the “opponents” Is fully briefed about the negotiated issues, has a good sense of timing and is consistent Copyright ©2017 Pearson Education, Inc. Successful Negotiators: Indians ❑ Look for and say the truth, not afraid to speak up ❑ Exercise self-control ❑ Respect other party, look for solutions acceptable to all parties ❑ Will change their minds, even at risk of seeming inconsistent and unpredictable ❑ Humble and trusts the opponent 5-24 Copyright ©2017 Pearson Education, Inc. Successful Negotiators: Arabs ❑ Protect honor, self-respect, dignity, and, thus, are trusted and respected ❑ Avoid direct confrontation ❑ Come up with creative, honorable solutions. ❑ Are impartial and can resist pressure ❑ Can keep secrets ❑ Controls temper and emotions 5-25 Copyright ©2017 Pearson Education, Inc. Successful Negotiators: Swedes ❑ Quiet, thoughtful, polite, straightforward ❑ Overcautious, but flexible ❑ Slow to react to new proposals, but eager to be productive and efficient ❑ Able to hide emotions, afraid of confrontation 5-26 Copyright ©2017 Pearson Education, Inc. Successful Negotiators: Italians ❑ Have a sense of drama, do not hide emotions ❑ Good at reading facial expressions and gestures ❑ Want to make a good impression and use flattery, but are distrusting ❑ Handle confrontation with subtlety and tact 5-27 Copyright ©2017 Pearson Education, Inc. Managing Negotiation Avoid person-related conflicts. Examples Low-context Americans appear impatient, cold, and blunt to Mexicans. 5-28 Copyright ©2017 Pearson Education, Inc. Americans must approach negotiations with Mexicans with patience; refrain from attacking ideas. Cross-Cultural Negotiation Variables 5-29 Copyright ©2017 Pearson Education, Inc. Successful Negotiators       5-30 Consider a wider range of options and pay greater attention to areas of common ground Tend to make twice as many comments regarding long-term issues More likely to set upper and lower limits regarding specific points Make fewer irritating comments: “We’re making you a generous offer” Make counter proposals less frequently and use fewer reasons to back up arguments Actively listen Copyright ©2017 Pearson Education, Inc. Using the Internet to Support Negotiations Negotiation Support System (NSS)  Increase likelihood of agreement  Decrease direct and indirect costs  Maximize optimal outcomes 5-31 Copyright ©2017 Pearson Education, Inc. Web Application  Provide support for phases and dimensions such as:  Multiple-issue, multiple- party business transactions of a buy-sell nature  International dispute resolution  Internal company negotiations and communications E-Negotiations Advantages  Speed  Less travel  Laying out much objective information over time Disadvantages  Not being able to build trust and interpersonal relationships  Nonverbal nuances are lost  Video conferencing may be a good compromise 5-32 Copyright ©2017 Pearson Education, Inc. Managing the Conflict Resolution 5-33 InstrumentalOriented Conflict • To negotiate on the basis of factual information and logical analysis ExpressiveOriented Conflict • To handle a situation indirectly and implicitly, without clear delineation of the situation by the person handling it Copyright ©2017 Pearson Education, Inc. Negotiation Conflicts Between Low Context and High Context Cultures Low Context Conflict Area • Explicit and direct, linear presentation of facts • Individualistic, shortterm oriented • Task-oriented, up-front, impatient 5-34 Copyright ©2017 Pearson Education, Inc. High Context Conflict Area • Implicit, circular logic • Collective, decisions by consensus; long-term oriented • “Face” and relationshiporiented; nonconfrontational, patient The Influence of Culture on Decision Making 5-35 Individualism VS Collectivism Objective VS Subjective Risk Tolerance VS Risk Avoidance Uncertainty VS Familiarity Copyright ©2017 Pearson Education, Inc. Approaches to Decision Making 5-36 Utilitarianism VS Moral Idealism Autocratic VS Participative Slow Pace VS Fast Pace Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To recognize that managing negotiation requires learning about the culturally based behavioral differences, values, and agendas of the negotiating parties and how to build trust for successful negotiations 5-37 Copyright ©2017 Pearson Education, Inc. Cultural Variables in Decision-Making Process 5-38 Copyright ©2017 Pearson Education, Inc. Under the Lens: Negotiations and Decisions to Save the Eurozone System  The negotiations in eurozone countries and the International Monetary Fund centered on a rescue for Greece, which was threatened with default  Austerity cuts were implemented in Greece in order to receive bailout money to avert default  Cultural, historical, and lifestyle differences brought out old prejudices that nearly derailed negotiations  Negotiations were undermined by a lack of trust  The extent to which decision making is influenced by culture varies among countries  One variable is whether a people assume an objective or a subjective approach 5-39 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To appreciate the variables in the decision-making process and understand the influence of culture on decision making 5-40 Copyright ©2017 Pearson Education, Inc. Comparative Management in Focus: Decision Making in Japanese Companies Wa Ringi Amae Shinyo 5-41 Copyright ©2017 Pearson Education, Inc. Comparative Management in Focus: Decision Making in Japanese Companies 5-42 Copyright ©2017 Pearson Education, Inc. Conclusion  Managers need working knowledge of decision- making processes and negotiating tactics used by managers in different countries  It is important to understand the cultural variables that influence negotiations and decision making, and how they influence these activities  Managers should prepare for, and conduct negotiations with cultural sensitivity 5-43 Copyright ©2017 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2017 Pearson Education, Inc. 9-1 Copyright ©2017 Pearson Education, Inc. Ninth Edition Chapter Learning Goals 1. To understand the strategic importance to the firm of the IHRM function and its various responsibilities 2. To learn about the major staffing options for global operations and the factors involved in those choices 9-2 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals 3. To emphasize the need for managing the performance of expatriates through careful selection, training, and compensation 4. To discuss the role of host country managers and the need for their training and appropriate compensation packages 9-3 Copyright ©2017 Pearson Education, Inc. Opening Profile: Staffing Company Operations in Emerging Markets 9-4 Copyright ©2017 Pearson Education, Inc. Need for up to 75000 business leaders, but 3000–5000 may be available BRIC Have outpaced the supply of mid and upper-level management BRIC BRIC BRIC Countries Many are simply not at the skill level required by foreign companies Chapter Learning Goals To understand the strategic importance to the firm of the IHRM function and its various responsibilities 9-5 Copyright ©2017 Pearson Education, Inc. 9-6 Copyright ©2017 Pearson Education, Inc. Deficit starting at the middle level. Also, dealing with the “brain drain” China Deficit at all management levels India Deficit at upper-level management Russia Brazil Opening Profile: BRIC—The Shortage of Mid/Upper-Level Managers Severe deficit at all levels of management Opening Profile: What Attracts the Potential Recruits in Emerging Markets? • A global “name brand” known for its Brand excellence • A company that is breaking into new Purpose markets, with new models and strategy Opportunity • A company that provides a fast-track training and career path • An organizational culture of openness and transparency Culture 9-7 Copyright ©2017 Pearson Education, Inc. Major Challenges in IHRM 1. 2. 3. 4. 5. 9-8 Enhancing global business strategy Aligning HR issues with business strategy Designing and leading change Building global corporate cultures Staffing organizations with global leaders Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To learn about the major staffing options for global operations and the factors involved in those choices 9-9 Copyright ©2017 Pearson Education, Inc. Staffing for Global Operations Ethnocentric Approach  Used at internationalization stage of strategic expansion, with centralized structure  Parent-country nationals (PCNs) 9-10 Copyright ©2017 Pearson Education, Inc. Polycentric Approach  Often used with multinational strategy  Host-country nationals (HCNs) Staffing for Global Operations Global Staffing Approach Regiocentric Approach  Third country nationals  Can produce a mix of (TCNs)  Transpatriates  Inpatriates: managers with global experience who are transferred to the organization’s headquarters country 9-11 Copyright ©2017 Pearson Education, Inc. PCNs, HCNs, and TCNs Maintaining a Globalization Momentum 9-12 Copyright ©2017 Pearson Education, Inc. Strategic Mode, Organizational Variables, and Staffing Orientation Aspect of enterprise Ethnocentric Strategic orientation International Expatriates Perpetuation used for key positions Evaluation and control Rewards 9-10 Home standards applied High at home; low in subsidiaries Copyright ©2017 Pearson Education, Inc. Polycentric Regiocentric Global Multidomestic Regional Transnational Locals used for key positions locally Regional people used regionally Best people used anywhere Determined locally Determined regionally Globally integrated Wide variation Based on contribution to regional objectives Based on contribution to local and worldwide objectives MNC Staffing  Most MNCs start from their own pool of managers → polycentric or regiocentric policy:  Increasing pressure from local governments to hire locals  The greater cost of expatriate staffing  Improvement in managerial and technical competence  “All things being equal, a local national who speaks the language, understands the culture and the political system, and is often a member of the local elite should be more effective than an expatriate alien” 9-14 Copyright ©2017 Pearson Education, Inc. Global Mind-set Attributes for Successful Expatriates  Intellectual capital  Psychological capital  Social capital 9-15 Copyright ©2017 Pearson Education, Inc. Chapter Learning Goals To emphasize the need for managing the performance of expatriates through careful selection, training, and compensation 9-16 Copyright ©2017 Pearson Education, Inc. Managing Expatriates: Selection Job factors Relational dimensions Motivational state Success categories Family situation Language skills 9-17 Copyright ©2017 Pearson Education, Inc. Managing Expatriates: Selection High tolerance for stress Less on domestic experience, gender, int’l experience Predictors of success Extraversion 9-18 Copyright ©2017 Pearson Education, Inc. Expatriates Performance Management Selection based on headquarters criteria Inadequate preparation, training, orientation Alienation or poor support from headquarters Inability to adapt to the local culture 9-19 Copyright ©2017 Pearson Education, Inc. Expatriates Performance Management Problems with spouse and children Insufficient compensation and financial support Poor programs for career support and repatriation 9-20 Copyright ©2017 Pearson Education, Inc. Comparative Management in Focus: Expatriate Performance Management Practices: Samples from Five Countries 1. Goal setting 2. Performance Appraisal 3. Training and Development 4. Performance-related Pay 9-21 Copyright ©2017 Pearson Education, Inc. Global Team Performance Management 1. Expatriate performance on a team, based on decisions made with team members in various countries, cultures, and time zones 2. Discussions conducted through teleconferencing, Skyping, and social media 3. Careful selection and training of team members for insight, local knowledge, and group creativity 9-22 Copyright ©2017 Pearson Education, Inc. Expatriate Training and Development China • Eating duck tongue and pigeon head Brazil • Home phones don’t work India • Pervasive poverty Indonesia Japan 9-23 • Rent paid 2–3 years in advance • Doctors reveal little to patients Copyright ©2017 Pearson Education, Inc. Expatriate Training and Development Japanese Expatriate Planning 9-24 Copyright ©2017 Pearson Education, Inc. • Selection based on longterm knowledge of executives and their families • Use of longer assignments (e.g., 5 years) • Extensive headquarters support Culture Shock 1. Honeymoon 2. Irritation and hostility 3. Gradual adjustment 4. Biculturalism 9-25 Copyright ©2017 Pearson Education, Inc. IHRM Process to Maximize Effectiveness of Expatriate Assignments Evaluate potential problems. Select expatriates. Develop contracts. Repatriate after successful assignment. Evaluate effectiveness and problems. Assess development and support needs. Integrate valueadded to firm. Debrief expatriate and family. To improve IHRM process 9-26 Copyright ©2017 Pearson Education, Inc. Cross-Cultural Training Culture Shock Subculture Shock 9-27 Copyright ©2017 Pearson Education, Inc. • A state of disorientation and anxiety about not knowing how to behave in an unfamiliar culture • The goal of training is to ease the adjustment to the new environment • When a manager is transferred to another part of the country, where there are cultural differences • The “shock” comes from feeling like an “immigrant” in one’s own country Corporate Programs to Develop Global Managers ABB rotates managers to different countries to develop transpatriots PepsiCo has an orientation program for foreign managers British Telecom uses informal mentoring techniques Honda offers Japanese language and culture preparation General Electric wants managers to have a global perspective 9-28 Copyright ©2017 Pearson Education, Inc. Integrating Training with Global Orientation Export Stage  Training need: low to moderate  Content: interpersonal skills, culture, customer values, business behavior  HCNs: train to understand parent-country products and policies 9-29 Copyright ©2017 Pearson Education, Inc. Multi-domestic Stage  Training need: moderate to high  Content: interpersonal skills, culture, technology transfer, business practices and laws  HCNs: familiarize with production and service procedures Integrating Training with Global Orientation Multinational Stage  Training need: high moderate to high  Content: interpersonal skills, two-way technology transfer, corporate value transfer, strategy, stress management, culture, business practices  HCNs: training in technical areas, products and services, corporate culture 9-30 Copyright ©2017 Pearson Education, Inc. Global Stage  Training need: high  Content: global corporate operations, corporate culture transfer, customers, global competitors, strategy  HCNs: training in proficiency in production and efficiency systems, corporate culture, business systems, global conduct policies Chapter Learning Goals To discuss the role of host country managers and the need for their training and appropriate compensation package. 9-31 Copyright ©2017 Pearson Education, Inc. Factors that Influence the Integration of Expatriates with Local Staff Facilitates Integration  Forming close working     9-32 relationships Learning local language Transferring technical/business knowledge Cultural adaptability Respect Copyright ©2017 Pearson Education, Inc. Hinders Integration  Not using team concept  Not learning local language  HQ mentality  Spouse/family adjustment problems  Being autocratic  Limited time in assignment Compensating Expatriates  DuPont’s Global Transfer Center of Expertise creates perceptions of equity and goodwill  Companies are looking for ways to cut the costs of expatriate assignments  The need to reconcile parent- and host-country practices adds complexity 9-33 Copyright ©2017 Pearson Education, Inc.  The balance sheet approach  Tax equalization  Components of the compensation package: salary, taxes, allowance, benefits Components of the Compensation Package 9-34 Salary Taxes Allowances • Local salary buying power vs. home salary • Equalize any differential effects of taxes • Relocation expenses, housing, trips home… Copyright ©2017 Pearson Education, Inc. Benefits • Health insurance, stock options Balance Sheet Approach 9-35 Copyright ©2017 Pearson Education, Inc. Training Host Country Nationals  Facilitates indigenization  Links successful corporate culture and local culture  Facilitates e-business adoption 9-36 Copyright ©2017 Pearson Education, Inc. Management in Action: Success! Starbucks’ Java Style Helps to Recruit, Train, and Retain Local Managers in Beijing  Challenges: recruiting, motivating, and retaining Beijing managers  Chinese recruits want training and advancement opportunities more than money  Recruits need trust and participation in an environment where local nationals do not exercise initiative or authority 9-37 Copyright ©2017 Pearson Education, Inc. Management in Action: Success! Starbucks’ Java Style Helps to Recruit, Train, and Retain Local Managers in Beijing  Recruits are trained in management and in Starbucks’ culture  Three months in Seattle  Make coffees in a real store  Casual atmosphere  Training, and resulting trust and participation, also serve as motivators 9-38 Copyright ©2017 Pearson Education, Inc. Compensating Host Country Nationals Eastern Europeans require more cash than Americans. Compensation in Japan is becoming more Westernized. In Latin America an employee’s pay and title are associated with the type of car received. 9-39 Copyright ©2017 Pearson Education, Inc. Conclusion  Global HR management = vital component of     9-40 global strategy Strategies = ethnocentric, polycentric, regiocentric, and global Many causes of ex-pat failure: inadequate preparation, inability to adapt, lack of HQ support for repatriation, etc Cultural training, language instruction, familiarity with everyday matters → training is needed Compensation must be carefully designed Copyright ©2017 Pearson Education, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2017 Pearson Education, Inc. 41
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Running head: ANDREAS WEBER CASE STUDY

Andreas Weber Case Study
Name
Institutional Affiliation

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ANDREAS WEBER CASE STUDY

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Andreas Weber Case Study
Introduction
As presented in the case, Andreas is shown as a mart and determined employee. Owing to
his hard work and determination, he is posted as an expatriate overseas to work as a senior
manager. However, after spending several years overseas, he decides to return home because of
family reasons. He has high hopes that his track record and experience abroad would earn him a
great post in the firm. Unfortunately, most of the international assignments fail to work as
planned. His return and the position he is posted at home is basically a demotion, failing to
reflect what he can truly offer the organization. This essay’s main objective is showing the effect
of an international assignment on career and professional development, career-associated
problems encountered by expatriate managers, and the dilemmas that await them upon return
from overseas assignments. The essay also looks into the factors influencing re-entry issues and
explores ways to improve international career repatriation and management efforts.
Body Paragraphs
Problems Identification and Solutions
The situation confronting Andreas is largely not uncommon in the world today. While a
worker could be picked from the rest for excellent performance and given a good position
overseas, re-entry pos...


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