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INTERNATIONAL HUMAN RESOURCE MANAGEMENT

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Repatriation is important because with it are associated a ... additional savings, which have to be forgone when an expatriate returns to the home country ... – PowerPoint PPT presentation

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Title: INTERNATIONAL HUMAN RESOURCE MANAGEMENT


1
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
  • Week 7

2
Repatriation
  • Repatriation may be defined as the activity of
    bringing an expatriate back to the home country
  • Repatriation is the final step in the
    expatriation process (recruitment selection ?
    predeparture training ? foreign assignment ?
    repatriation or reassignment)
  • Repatriation is important because with it are
    associated a number of severe challenges for the
    expatriate which may significantly determine his
    or her performance prior to the return to the
    home country, and which hinder the expatriates
    reintegration due to readjustment problems or
    reverse culture shock (reentry shock) after
    return

3
Phase-wise Perspective of Repatriation
Repatriation Process
4
Phases of the Repatriation Process (1)
  • Preparation Provision of information to the
    expatriate to facilitate the return to the home
    country. Example Checklist of the things to do
    in the host country prior to departure (closing
    accounts, payment of bills etc.)
  • Physical Relocation Includes activities such as
    removing personal effects, breaking ties with
    colleagues and friends and traveling to the home
    country. Help to the expatriate and his or her
    family is usually provided by relocation
    consultants or firms. Comprehensive and
    personalized relocation assistance serves to
    reduce anxiety, stress, uncertainty and
    disruption experienced by the expatriate and his
    or her family

5
Phases of the Repatriation Process (2)
  • Transition Phase in which the expatriate and
    his or her family readjust to their return to the
    home country. Some companies hire relocation
    consults to assist in this phase also. Typical
    activities include acquiring temporary
    accommodation, making arrangements for housing
    and schooling, performing necessary
    administrative tasks (e.g. renewing drivers
    license, applying for medical insurance, opening
    bank accounts)
  • Readjustment This phase involves coping with
    reverse culture shock and the expatriates career
    demands on the organization

6
Expatriate Problems With Repatriation (Career
Anxiety)
  • The effect of an international assignment on an
    expatriates career path are major concerns for
    that individual. Usually, an international
    assignment is accepted because of its anticipated
    career benefits
  • Anxiety may arise if an expatriate feels that his
    or her career advancement opportunities are not
    commensurate with the sacrifices made by the
    expatriate and his or her family as a consequence
    of acceptance of the assignment
  • Anxiety over the reentry position in the
    organization may occur long before repatriation

7
Expatriate Problems With Repatriation (Possible
Reasons for Career Anxiety)
  • Period of absence from the home country has
    caused loss of visibility, isolation and feeling
    of being forgotten for the expatriate, especially
    if he or she is based in a subsidiary unit with
    lots or independence and comparatively little
    contact with the organizations headquarters
  • Worry over inadequate planning by the
    organization and that the expatriate will be
    given a mediocre or makeshift job
  • Worry about restructuring and/or downsizing
    measures underway in an organization
  • Lack of a guaranteed job upon return to the
    parent organization Worry that the position given
    or return corresponds to a demotion

8
Expatriate Problems With Repatriation (Career
Anxiety)
  • The declining tendency of organizations to offer
    job guarantees to expatriates after their return
    from a foreign assignment may have adverse
    consequences in terms of
  • Staff Availability
  • Perception of Foreign Assignments (High-Risk
    Career Strategy)
  • Heightened Career Anxiety
  • Commitment to the Organization and Productivity
    while on the Foreign Assignment

9
Expatriate Problems With Repatriation (Devaluation
of the Intern. Experience)
  • Expatriates are often confronted with being
    offered reentry positions that appear unconnected
    with their international experience
  • Sometimes returning expatriates are offered
    positions that are less challenging and with
    reduced responsibility and status than they had
    prior to going on their foreign assignment
    (negative career progression), causing both a
    demotivation (on the returning expatriate) and
    deterrence (on potential expatriates) effect
  • Devaluation of international experience and
    repatriate turnover tend to be positively
    correlated

10
Expatriate Problems With Repatriation (Loss of
Status and Pay (1))
  • International assignments often are associated
    with considerable status and prestige for an
    expatriate, for e.g. in terms of autonomy, more
    responsibility and a prominent role in the local
    community (kingpin)
  • Returning to the parent organization usually
    results in the loss of autonomy and status

Over there, you are the big fish in a small pond.
Back home, you return to being the small fish
in a big pond!
11
Expatriate Problems With Repatriation (Loss of
Status and Pay (2))
  • International assignments often bring with them
    several compensatory benefits (expatriate
    premiums) and additional savings, which have to
    be forgone when an expatriate returns to the home
    country
  • After returning from an international assignment,
    an expatriate may no longer be able to purchase a
    home similar to the one he or she may have sold
    prior to going on the international assignment.
    Also, the standard of housing in the foreign
    assignment location may have been better than on
    return to the home country

12
Expatriate Problems With Repatriation (Social
Considerations (1))
  • If an expatriate served in a foreign assignment
    in a high-profile position where he or she
    enjoyed considerable and sustained interaction
    with the social, economic and political elites of
    the host country, a feeling of disappointment may
    emerge after return to the home country. This
    feeling may be excacerbated by the loss of the
    expatriate compensation premium and other
    benefits
  • In addition to the expatriates social
    readjustment problems, the social readjustment
    problems of his or her accompanying family
    members must also be taken into consideration as
    well

13
Expatriate Problems With Repatriation (Social
Considerations (2))
  • Reestablishment of social networks in the home
    country may be difficult if, for e.g., the
    expatriate and family are repatriated to another
    locality in the home country. It may be that
    friends have moved away while the expatriate was
    on assignment and that other friends may have
    joined the workforce and have no time for social
    activities
  • Children may encounter social readjustment
    problems in school because they are not update on
    latest trends, and may have problems adjusting to
    their home country educational system

14
Expatriate Problems With Repatriation (Effect on
Partners Career)
  • Partners of expatriates may encounter problems in
    the home country when they seek to enter or
    reenter the workforce. Consequently, their
    self-esteem may decline, hindering their
    readjustment, particularly if they were employed
    prior to moving with the expatriate to the
    foreign assignment location
  • Given the increase in the number of dual-career
    couples, the career problems of the expatriates
    spouse need to be taken more into consideration

15
Expatriate Problems With Repatriation (Case Study)
International Human Resource Management Managing
People in a Multinational Context Peter J.
Dowling, Denice E. Welch, Randall S.
Schuler 3rd. Edition Pages 219 - 220
16
Expatriate Problems With Repatriation (Organizatio
nal Responses (1))
  • Recent research indicates that the majority of
    organizations have no formal repatriation
    programme to help expatriates readjust on return
    to the home country
  • Only a small proportion of the repatriation
    programmes have consideration for the spouse
  • Typical reasons given by organizations for not
    having a repatriation programme include
  • Lack of the requisite expertise
  • Programme cost
  • Lack of a perceived need by top management

17
Expatriate Problems With Repatriation (Organizatio
nal Responses (2))
  • Some organizations provide a form of repatriation
    assistance in the form of a mentor
  • The mentor is usually a superior to the
    expatriate and provides assistance in the form of
    information, by maintaining regular contact with
    the expatriate, and by taking the expatriates
    interests regarding promotion and job placement
    on return etc. into account
  • Research indicates that the likelihood of an
    organization using mentors depends on the size of
    the expatriate workforce, the organizational unit
    responsible for handling expatriates and the
    nationality of the organization
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