Selecting and Developing the Global Versus the Expatriate Manager: A Review of the State-of-the-Art

Vladimir Pucik, Professor, IMD, Lausanne, Switzerland;Tania Saba, Assistant Professor, School of Industrial Relations, University of Montreal

T
I

Ihis article presents a working definition of

two key concepts in international human resource management: a global manager

and an expatriate manager. The expatriate manager or the international manager is defined, in a narrow sense, as an executive in a leadership position that involves international assignments. The global manager is defined, in a broad sense, as an executive who has a hands-on understanding of international business, has an ability to work across cross-cultural, organizational, and functional boundaries, and is able to balance the simultaneous demands of short-term profitability and growth. The article's objectives are to clarify the main differences between the two concepts, to review the principal contributions to the literature on this subject, and to identify the organizational processes and human resource management tools that can influence both the success of the expatriate assignments and the development of global competencies.

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the location of the assignment whereas the global manager is defined by his or her frame of mind. The term "expatriate (or intemational) manager" defines an executive who is able to assume a leadership position fulfilling international assignments across countries and cultures. In this review, the terms expatriate manager and "international manager" are used as equivalents, as these terms are interchangeable in most of the Defining the Expatriate vs. literature. The term "global manager" (or the Global Manager "transnational manager" as it is sometimes called in the literature) usually refers to an execIt is widely agreed thai the critical factor for utive assigned to a position with a cross-border companies to succeed in global competition is responsibility, who has a flexible and open effective development of global managers and mind, with a well-rounded understanding of executives (Pucik. 1985; Bartlett & Ghoshal. 1989: Evans, 1992; Tichy & ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ international business and an ability to work across cross-cultural and Sherman, 1993; Gates, 1994). Lioss-functional boundaries, who However, in management developBuilding and perceives global competition as an ment literature, there seems to be a sustaining opportunity, and who is able to balgreat deal of confusion about the organizational ance the simultaneous demands of meaning of various terms defining global integration and national expatriate/intemational/global mancapabilities for responsiveness (Pucik. 1991; agers. In an effort to clarify the difglobal operations Bartlett & Ghoshal, 1989; 1992). ferences between the expatriate and Some global managers may be the global manager, this article is a critical expatriates: many, if not most, have explores the definitions of the two challenge for most been expatriates at some point in concepts, and explains the differtheir career, but probably only few ences in behaviors, competencies, globalizing firms. expatriates are global managers. and characteristics of the two types Meeting this of managers. The article also identiA literature review' show.s that challenge requires fies and compares the human although a great number of studies resource practices necessary for an deal wilh the international or the changes in cognieffective development of the expatriexpatriate manager, there seem to tive processes ate and global managers. be fewer studies (most of them conBuilding and sustaining organizaceptual, not empirical) about global through which tional capabilities for global operamanagers. Within the abundant managers frame tions is a critical challenge for most research on expatriate managers, globalizing finns (Nohria & business problems. most of the work has been focused Ghoshai, 1997). Meeting this chalon the issue of selecting managers lenge requires changes in cognitive for international assignments resultprocesses through which managers frame ing in lists of criteria, competencies, and characbusiness problems (Murtha, Lenway & Bagozzi. teristics that the international manager should 1998). Global thinking places high value on possess, as well as on the identification of persharing infonnation, knowledge, and experience sonality and psychometric tests that could be across national, functional, and business boundused to measure such personal qualifications. At aries and on balancing competing country, the same time, researchers have analyzed the business, and functional priorities that emerge causes of failure in overseas assignments and in the globalization process. This set of attitudes have introduced HR practices that would help is often described as global mindset. organizations select, develop, and retain compeThe emphasis on the mindset helps to tent expatriate managers (Tung, 1981; differentiate between expatriate (intemational) Mendenhall & Oddou, 1985; Dulfer, 1990: and global managers. The definition of an Ronen, 1990: Oddou, 1991: Arthur & expatriate/international manager is linked to Bennett, 1995).

"The thing that wakes me up in the middle of the night is not what might happen to the economy or what our competitors might do ne.xt. What does wake me up is worrying about whether or not we have the leadership capability and the talent to implement the new and more complex global strategies." -Dave Whitman. CEO. Whirlpool Corporation

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The 21st-century Expatriate Manager Profile (adapted from Howard, 1992)

Skills
Multidimensional Perspective Proficiency in Line Management Prudent DecisionMaking SkilLs Resourcefulness

Managerial Implications Core Skills

Extensive multi-product, multi-indtistrj', multi-functional, multi-company, multi-country, and multi-environment experience Track record in successfully operating a strategic business unit(s) and/or a series of major overseas projects Competence and proven track record in making the right strategic decisions

Skillful in getting himself or herself known and accepted in the host country's political hierarchy Adept in bringing a culturally diverse working group together to accomplish the major mission and objective of the organization

Ability as a Team Builder

Augmented Skills
Computer Literacy Prudent Negotiating Skills Ability as a Change Agent Comfortable exchanging strategic infonnation electronically Proven track record in conducting successful strategic business negotiations in multicultural environment Proven track record in successfully initiating and implementing strategic organizational changes Quick to recognize and respond to strategic business opportunities and potential political and economic upheavals in the host country Proven track record in participative management style and ability to delegate

Visionary Skills

Effective Delegatory Skills

In contrast, research on global managers is relatively scarce. Besides defining what the global manager's competencies and behavior should be and how they differ from that of the expatriate manager, studies revealing the global manager's profile, the determinants of the successful global manager, and the effective HR practices to develop the global manager ate still mainly at a conceptual stage (Kupfer, 1988; Pucik, 1992; Adler & Bartholomew, 1992; Evans, 1992; Kets de Vries & Mead, 1992; Tichy. 1992; Bartiett & Ghoshal, 1992; Yeung & Ready, 1995, Werther, Wachtel & Veal, 1995). BKHAVIORS AND COMPETENCIES Expatriates' Behaviors and Competencies. In one of the earliest articles on this subjecl. Hays (1974) categorizes expatriate managers into four types. The structure reproducer is responsible for reproducing in the foreign subsidiary a structure similar to that of another part of the company. The technical troubleshooter is sent to analyze and solve a technical problem. The operational expatriate is the individual who carries out a well-defined position in an ongoing business.

and the chief executive officer oversees and directs the entire foreign operation. Similarly. Derr and Oddou (1991) identify two types of expatriates; those who are assigned abroad to "fix" a problem, including those assigned to line management and specialized functional positions, and those who go abroad as "high-potentials" to broaden their development before inoving up to senior management. In this context, Pucik (1992) differentiates between "demanddriven" and learning-driven" international assignments. A number of researchers focused on competencies of effective international tnanagers. According to Dulfer (1990), international managers must have clear managerial qualifications, in addition to purely technical and professional skills and competencies. They should be able lo perform tasks as members of a team, reflect on complex problems in an appropriate way. improvise and find new solutions in the face of unexpected changes, impart confidence in their own ability to solve problems in difficult situations. and most of all. motivate all members of the organization to cooperate. McCali (1992) has

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proposed (as an outcome of a research project aimed ul developing an assessment instrument to identify leadership potential in future international executives) that individuals who are hound to be successful in international assignments are those who show ability to Icarn from experience. International managers should show curiosity about how things work, have a sense of adventure, demonstrate readiness/hardiness about leaming. be biased toward action, accept responsibility for learning and change, respect differences among people, seek and use feedback, and have shown consistent growth over time. Focusing on one key competency expected of expatriate managers, the "international knowledge," Rothwell (1992) explored its three principal components: general knowledge about the world and global economy: national information ahout conditions in a specific country; and business understanding of strategy, process, and leadership style. Looking toward the future, Howard (1992) has summarized the skills required of the 21st-century expatriate manager (see Exhibit I). Global Managers' Behaviors and Competencies. According to Bartlett and Ghoshal (1989; 1992), global managers are individuals that have been selected for, developed by, and CO opted into the broader transnational organization. Their principal characteristic is the ability to resolve complex and potentially contradic-

tory issues embedded in the global environment. Bartlett and Ghoshal refer to these sets of behaviors and competencies as the building of a global matrix in the mind of the global manager, but they add that there is no such thing as a universal global manager. Rather, there are three groups of global specialists business managers, country managers, and functional managers that should together lead the organization to achieve globalscale efficiency and integration, national-level responsiveness and flexibility, and cross-market capacity to leverage learning on a worldwide basis (see Exhibit 2). A number of recent contributions to the discussion of globalization of management focused on identification of key competencies of global managers with references to the traditional leadership literature. Tichy (1992) refers to global managers/leaders as 'globalists," characterized as individuals who have a global mindset i.e., those who can conceptualize complex geopolitical and cultural forces as they impact business, and possesses a well-honed set of global leadership skills and behaviors, such as an ability to build effective cross-cultural teams; the energy, skills, and talents to be global networkers; and skills as global '"change agents." Kets de Vries and Mead (1992) identify global leaders as individuals with the capacity of envisioning (indicating future direction in an increasingly complex

The Three Groups of Global Specialists (adapted from Bartlett & Ghoshal, 1992)
Groups of Global Specialists
Business Manager

Skills and Competencies

Recognize opportunities and risks across national and functional boundaries Coordinate activilies and link capabilities across those barriers Capture full benefit of integrated worldwide operations

Roles: Country Manager

Strategist. Architect, and Coordinator

Meet local customers' needs Satisfy the host govemment's requirements Defend the company's markel position against local and external competitors Roles: Sensor. Builder, and Contributor

Functional Manager

Build an organization that can use leaming to create and spread innovations Scan for specialized infonnatiori leading-edge knowledge and best practices worldwide Champion innovations that may offer transnational opportunities and applications Roles: Scunner, Cross-Pottinator, and Champion

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Differences Between the Expatriate and the Global Manager

(Adler & Bartholomew, 1992)
Expatriate Manager
Global Perspective Focuses on a single foreign country and on managing relationships between headquatlers and that country Becomes an expert on one culture

Transnational Manager
Understands worldwide business environment from a global perspective Must leam about many foreign cultures' perspectives, tastes, trends, technologies, and approaches to conducting business Works with and leam from people from many cultures simultaneously Creates a culturally synergistic organizational environment Adapts to living in many foreign cultures Uses cross-cultural skills on a daily bask throughout his or her career Interiu:ts with foreign colleagues as equals

Local Responsiveness

Synergistic Learning

Works with and coaches people in each foreign culture separately or sequentially Integrates foreigners into the headquarters" national organizational culture

IVansition and Adaptation Cross-cultural Interaction Collaboration

Adapts to living in a foreign culttire Uses cross-cultural interaction skills primarily on foreign assignments Interacts with colleagues from within clearly defined hierarchies of stmctural and cultural dominance and subordination Expatriation or inpatriation primarily to get the job done

Foreign Experience

Transpatriation for career and organization development

environment), the ability to instill values and inspire others and build and maintain organizational networks, the capacity for "pattern recognition" {sorting out relevant from irrelevant infonnation). and the ability to cope with stress. Research conducted by the Ashridge Management Research Group led to differentiation within two sides of the global managers" competencies (Barham & Anial. 1994). The first set of competencies is linked to the active roles that the global manager should play in order to manage across a number of countries and cultures simultaneously. The "doing"' competencies, as Barham calls them, consist of championing international strategy, operating as cross-border coach and coordinator, acting as intercultural mediator and change agent, and managing personal effectiveness for international business. (The other set of global competencies, or what Barham refers to as the "being"' competencies, are presented later in the section on the attributes of successful global managers.) Finally, in a recent study of managers in major global companies, Yeung and Ready (1995) identify six leadership capabilities that corporations value in global managers. These capabilities are as follows: to be a catalyst/manager of strategic change; to be a catalyst/manager of cultural change; to articulate
44 HUMAN RESOURCE PLANNING

a tangible vision, values, and strategies; to exhibit a strong customer orientation; to empower others to do their best; and to get results, or manage strategy to action. Several studies concentrated on global managers" way of thinking, or "global tnindset."" In an 1993 article, Rhinesmith defined the global manager as an executive with a global mindset, able to scan the world from a broad perspective, always looking for unexpected trends and opportunities to achieve his or her personal, professional, or organizational objectives. Rhinesmith (1993; 1995) defines the mindset as "a predisposition to see the world in a particular way that sets boundaries and provides explanations for why things are the way they are. while at the same time establishing guidance for ways in which we should behave.'" In this respect, individuals with a global mindset should be able to drive for the bigger, broader picture, balance paradoxes, trust process over structure, value differences, manage change, and seek lifelong leaming. Is global mindset a tneasurable construct? Recently, Murtha, Lenway. and Bagozzi (1998) discussed the application of a survey instrument designed to evaluate individual and organizational progress toward creating a global mindset opera!ionalized as an ability to balance the con-

tradictory pressures of global integration, responsiveness, and coordination. They have created a scale to assess the degree lo which managers develop global mind.sets, the impact of policy variables on organizational and individual differences concerning globalization, and most important, individual and organizational progress in becoming global and factors that account for variations in the speed ot globalization across and within organizations. An interesting question that can be addressed using the global mindset scale is whether one can acquire a global mindset (to become a global manager) without ever leaving his or her home country as an expatriate. Comparing the Two Sets of Behaviors and Competencies. Reviewing the behaviors and competencies required of expatriate and transnational managers. Adler and Bartholomew (1992) summarize the main differences between the two concepts (see Exhibit 3). The differences in skill characteristics are seen as driven primarily by the degree of cultural and organizational complexity facing managers during iheir careers. FACTORS ASSOCIATEU WITH KXPATRIATE
AND (;LOBAL MANAGERS- EAILURE

premature reentry and concluded that this argument is not fully sub.stantiated by empirical evidence. She adds that measuring the failure rate as the percentage of expatriate managers retuming home before the expiration of their assignment contract is inadequate for two reasons: (1) it is far more damaging for a company if an expatriate who fails to perform adequately stays until the completion of the overseas assignment; and (2) a completion of the overseas assignment does not mean that the expatriate failure has been avoided. Nevertheless, Harzing concludes that HR executives should continue to examine expatriate failure, but more attention should be paid to the reasons behind the failure (defined as premature return, the lack of cross-cultural adju.stment, and poor pertbrmance during intemational assignment), which may include a variety of individual as well as organizational factors. INDIVIDUAL EACTORS First, the expatriate inability to manage and cope effectively can be caused by personal issues. Personality attributes such as the inability to deal with stressful situations, lack of the right attitudes and skills to communicate with people from different cultures, and the inadaptability of the family to the new environment are frequently cited as reasons that cause an expatriate manager to retum prematurely from the intemational assignment (Mendenhall. Dunbar & Oddou, 1987; Hogan & Goodson. 1990; Black, Gregersen & Mendenhall, 1992; Scullion, 1992; 1994). Some of these personality characteristics will be examined in more detail later while reviewing the literature on the attributes of successful expatriate managers. Aside from the personality attributes that may cause the failure of the expatriate assignments, the literature has focused on three additional individual-level issues: A) Willingness to Relocate. Brett and Stroh (1995) studied empirically the willingness of American managers to relocate intemationally. The focus of the study was to provide an intentional measure of that willingness. The results showed that American managers' decision to relocate were definitely influenced by their spouse's feelings about intemational relocation and by their own attitude toward moving in general. It was also influenced by the number of children at home and employer's policies (Harvey, 1996). In recent research on intemation-

Much of the normative literature on the expatriate process is based on the argument that the expatriate failure rate is high (Baker & Ivancevich, 1971; Misa & Fabricatore, 1979; Tung. 1981: Black, Gregersen & Mendenhall, 1992). The study of predictors of expatriate failure now has a long history in management literature. In contrast, we are not aware of any study that focuses on predictors of failure of global managers. Findings by Dowling (1990). Scullion (1994). and Weeks (1992) suggest that shortages of experienced and capable expatriate managers have become more acute over the past five years. They are caused on the demand side by the everincreasing pace of internationalization, whiie on the supply size, the organizational capability to develop effective expatriate exeeutives is hindered by the inadequate management of the expatriation process, from selection and and handling of the initial culture shock to repatriation (Howard. 1980. 1992: Mendenhall, Dunbar & Katcher 1990: Dulfer. 1990; Hogan & Goodson, 1990; Feldman & Tompson, 1992; Weeks, 1992; Gregersen. 1995). Recently, however, Harzing (1995) reviewed the literature on expatriate failure measured as a

HUMAN RESOURCE PLANNING

45

al mobility. Forster (1992) focused on four key dimensions (related to job mobility) to explain Ihe attitudes toward accepting assignments abroad: 1) the performance of employees abroad and the causes of expatriate failures (Tung, 1982: Pucik, 1988: Black & Mendenhall, 1992); 2) the personality profiles and psychological attributes of successful international managers (Phalak, 1974; Tung. 1981: Black & Mendenhall, 1990); 3) the effect of language and cultural training on expatriates (Gertsen, 1990: Black, 1990); and 4) and the effects of national cultural differences on the outcomes of international assignments (Gould & Penley, 1985; Gertsen, 1990; Smith, 1992). B) Family Issues. The inability of the spouse to adjust to the new country was cited in many empirical studies as a reason for expatriate failure (Tung, 1981: Black & Stephens, 1989: Dowling. 1990: Swaak, I99,S). Dual-career couples are also more likely to turn down international assignments because of the expected negative effects of a career interruption (Stephens & Black. 1991). !t is clear [hat future research should include investigations of the effects of dual-earner families. Companies should implement practices such as job search assistance and pooling available positions in a geographically based consortium of companies (Catalyst, 1981). C) Expatriate Commitment. Black and Gregersen (1992) and Gregersen (1992) have explained expatriate failure by taking a closer look at the fonns of allegiance developed by the expatriate toward both the local operation and the parent company. They have identified four types of expatriate commitment: the "freer agents" with low level of commitment to both the parent and the local operation; those who "leave their heart at home"; those who "go native": and those who become "dual citizens" expatriates with high allegiance to both the parent and local affiliate. In their study, developing a high dual allegiance seems to be the best way to prevent failure after an international assignment and has proven to have positive personal and organizational consequences.
ORGANIZATIONAL FACTORS

In the same vein, many authors have described the difficulty of managing dual-career marriages, the lack of career planning, the poor orientation programs, the ineffective cross-cultural training, and the unattractive compensation packages as common organizational factors that would imminently lead to overseas failure (Mendenhall, Dunbar & Oddou, 1987: Blocklyn, 1989; Hogan & Goodson, 1990; Dunbur & Katcher, 1990; Derr & Oddou, 1991; Rothwell, 1992: Forster. 1992; Howard, 1992; Wederspahn & Stahl, 1992; Harrison, 1994). Criticizing what they believe is "the most common American approach" to expatriate selection. Black, Gregersen, and Mendenhall (1992) add that the global assignment is destined to fail if it is based only on a superticial selection of candidates on the presumable technical and managerial competence to put "the foreign fire out." Others argue that the typical selection process often fails to take into consideration the candidates" crosscultural ability or the family disposition to live abroad (Stone. 1991). DETERMINANTS OF EXPATRIATE AND GLOBAL MANAGERS' SUCCESS The research on determinants of expatriate success is also much more developed than research on global managers, with an emphasis on expatriate selection and the expatriation process. The dominant theme of the literature reflects the opinion that expatriate selection and development is still mainly focused on technical competence as the key determinant of an expatriate manager's success, but that stronger efforts should be deployed by organizations to assess other, "softer" factors, such as relational, crosscultural, and interpersonal abilities as well as adaptability potential of the spouse and other family members (Tung. 1981; Bennett, 1989; Cope, 1992; Scullion, 1994). In one of the earliest studies of the expatriation process, Tung (1981) identified four groups of variables that contribute to expatriate success: technical competence on the job; personality traits or relational abilities: environmental variables; and the family situation. Tung (1981) adds that the importance of these selection criteria varies according to the category of tasks the international manager is expected to perform: chief executive officer; functional head; troubleshooter; and international operative. Mendenhail and Oddou (1985) identified four key dimensions in the expatriate adjustment

The ineptitude of the organizations in providing effective expatriate selection, training, and preparation programs and support policies during and after the completion of the international assignment is regarded as a ver>' important reason in determining the failure of overseas appointments.

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because they believe that expatriate acculturation is a multidimensional process. The self-oriented dimension is composed of three sub-factors: reinforeemenl subslilution; stre.ss reduction; and technical competence. This dimension measures the expatriate's ability of adjustment. The othersoriented dimension measures the expatriate's ability to interact effectively with host-country nationals and consists of two sub-factors: relationship development and willingness to communicate. The perceptual dimension refers to the ability lo understand why foreigners behave the way they do. Expatriate managers should be nonjudgmental and non-evaluative in interpreting the behavior ot host-country nationals. The culturaltoughness dimension refers to the understanding of differences between countries. Ronen (1990) incorporates the dimensions of expatriate success identified by Tung (1981) and Mendenhall and Oddou (1985) and identifies five categories of attributes of success: job factors: relational dimensions; motivational state; family situation; and language skills. Oddou (1991) states that there arc never any guarantees in identifying what constitutes the '"righr" person for the international assignment. However, a few indicators might be helpful to identify the potential expatriate. The candidate's capacity to adapt to change (new structures, new rules and new faces), his or her open-mindness, sociability, self-confidence, whether or not he or she has a supportive family, and the candidate's capacity to deal with stress are essential elements that enhance a firm's chances of employing a successful expatriate. With respect to global managers, the scope of the literature is much more sparse. Kets de Vries and Mead (1992) identified five principal categories of factors contributing lo the development of global leaders: management development; adaptability factors; leadership factors; personal development; and training and education. These five categories are broadly comparable to those identified by Tung (1981), Mendenhall and Oddou (1985), and Ronen (1990). and together can be grouped as professional and technical competence, relational abilities, leadership factors, family situation, and cultural awareness (see Exhibit 4). From a psychological perspective, according to Wills and Barham (1992). core competencies of international managers may be described as cognitive complexity, emotional energy, and psychological maturity. The cognitive complexity refers to the ability to see multiple dimensions in

a situation, and to identify the relationships between those different dimensions. The emotional energy is the ability to deal with stressful situations. The psychological maturity refers to three additional attributes of global managers: their strong curiosity that drives them to learn; their willingness to apply a great deal of psychological energy to unravel the complexity of a situation; and their strong personal morality (Barham & Antal, 1994).

Developing International and Global Managers

Not surprisingly, the majority of conceptual and empirical studies in this area have thus far focused mainly on HR practices related to expatriates. Research on global managers is substantially less developed, and still basically in a conceptual stage. The primary emphasis of the empirical studies is on the expatriation process, selection, and training: not much work has been done on performance management and compensation of globalization. Most of the studies are descriptive, although a sophistication of the analysis continues to increase. The key challenge is the operationalization of the outcome variables that are seldom linked to objective measures of individual or organizational perfonnance. HR MANAGEMENT PRACTICES SUPPORTINC; EFFECTIVE DEPLOYMENT OF EXPATRIATES We have reviewed the recent literature on HR management practices related to expatriate managers in order to identify examples of effective HR techniques that may support effective deployment of expatriate managers (see Exhibit 5). The HR practices are categorized into five major activities: staffing; training and career development; performance appraisals and compensation; expatriation process; and repatriation. Refiecting the nature of the field, information on HR practices is mostly drawn Irom North American firms and European data; data on nonWestern firms appear only infrequently. The list of citations is meant to be illustrative, not exhaustive, but whenever appropriate, examples of companies that have implemented the practice (as cited in the literature) are included. We have also noted the type of research methodology used in the article reviewed. A number of key themes emerge from our review. In the area of staffing and selection, the

HUMAN RESOURCE PLANNING

47

thrust of HR activities in leading global firms consistent with recommendations based on past research is on enlarging the pool of potential candidates for intemational a.ssignments, as well as on making sure that the international track attracts those with the best potential to succeed in the firm. Assessment for intemational assign-

ment is becoming increasingly rigorous and often involves the candidate's spouse. The structure of assignments is becoming more flexible. From the management development perspective, international assignments are increasingly viewed as an intrinsic part of career progression, providing opportunities for both a transfer of

Characteristics of the Successful Expatriate and Global Manager

Expatriate Manager
T\ing (1981) Professional and Technical Competence (1)
Technical Competence on the Job Experience in company Technical knowledge of business Previous overseas experience Managerial talent Overall experience and education Personality Traits and Relational Abilities Communicative ability Maturity and emotional stability Respect for culture of host country Adaptability and flexibility in new environment MCIKII'IIIKIII and

Global Managerl
Ronen (1990)
Job Factors Technical skills Acquaintance with host-country and headquarters operations Managerial skills Administrative competence

Odduu (l^HS)
Self-Oriented Dimension Technical competence

Kets dt' \rits atid Mead [1991)

Management Development Early responsibility Variety of tasks Early intemational experietice Corporate values

Relational Abilities (2)

Reinforcement substitution Stress reduction Perceptual Dimension Nonjodgmentali^im Nonevaiuative in interpreting the behavior of hostcountry nationals Others-Oriented Dimension (expatriate ability lo interact effectively with host-country nationals) Relationship development Willingnes.s to communicate

Relational Dimensions Tolerance for ambiguity Behavioral flexibility Nonjudgmemalism Cultural empathy and low elhnocentrism Interpersonal skills

Adaptability Factois Narcissistic development Cultural diversity in family Early intemational experience Bilingualism Multiple roots

Leadership Factors (3)

Motivational State Belief in the mission Congruence with career path Interest in overseas experience Interest in the specific host-country culture Willingness to acquire new patterns of behaviour and attitudes

Leadership Factors Self-confidence Responsibility Curiosity Imagination Hardiness Decision-making skills Envisioning Communication skills "Core values" Career goals and expectations Personal Development Supportive spouse Adaptable spouse "'Movable children" Variety of interest

Family Situation (4)

Family Situation Stability of marital relationship Spouse's and family' adapiability

Family Situation Willingness of spouse to live abroad Adaptive and supportive spouse Stable marriage Cultural -Toughness Dimension refers to the understanding of differences between countries Language Skills Host-country language Non-verbal communication

Cultural Awareness (5)

Environmental Factors Flexibility in other cultures

Training and Education Analytical skills Professionai skills Study in another culture Study in international languages

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HUMAN RESOURCE PLANNING

knowledge as well as leaming of new competencies by the international manager. Leading global firms invest heavily In the training of their international managers. However, not only is training provided in the pre-departure stage, but it is targeted to help the expatriates continue learning about the host culture and improve their intemationa! skills during the assignment. Managing the cost of compensating expatriate managers often shows in surveys as an item of major concern for intemational HR executives (McKay. 1994; Reynolds. 1995). However, this concem is not yet reflected in the academic literature. Most of the discussion and recommendations are focused on the effectiveness of various financial incentives. In a number of articles, there seems to be an implicit yearning fur a better model ot expatriate compensation (e.g.. delivering the same or more positive outcomes pertbnnance and retention for less money), but the allemative designs are still not yet well-articulated or tested. Similarly, the area of expatriate performance management (e.g.. criteria, process, outcomes) is also substantially unexplored. An important component of effective expatriate management policies is geared toward the expatriation process, before and throughout the duration of an assignment. There is a strong consensus in the literature about the need to invest in thorough training and orientation programs not only for the expatriate, but also for his or her family. After posting, the quality of the support network inside the host country, as well as linkage with the home office, may influence how expatriates perform. In addition, family wellbeing is seen as an increasingly important prerequisite of expatriate effectiveness. Finally, the repatriation stage of the intemalional assignment is receiving growing attention in order to reduce the perceived high tumover of retuming executives. Visible successful retums can also have a positive impact on willingness of others to accept an intemalional assignment. While an intemational assignment cannot be a shelter against organizational upheavals, much more can be done to improve the odds of success, at relatively low cost. The best practices focus on advance planning in order to provide meaningful opportunities upon return that create value for the employee as well as for the company, and on emotional and logistical support during the transition.

HR PRACTICES THAT SUPPORT DEVELOPMENT OF CLOBAL MANAGERS Based on the observations in the literature, we have categorized various normative statements and prescriptions regarding the impact of HR practices on development of global leaders into five areas: selection; career development and training; perfonnance management and compensation; organizalional design; and global communication. In particular, our objective was to capture those HR practices that can support effective development of global managers and are already in the process of being implemented at leading North American and European firms (Adler & Batholomew. 1992; Kets de Vries & Mead. 1992; Pucik, 1992; Tichy, 1992; Yeung & Ready. 1995). A number of "'global'" HR practices stand out. Staffing sheds its ethnocentric image; global managers can come from anywhere in the world. International assignments start early and flexibility is the key; they can take various forms linked to the developmental needs. Global mindset and global leadership become an integral part of performance management criteria. Tasks of global managers are structured to cross intra-organizational boundaries, often through membership in transnational teams. Emphasis is on the quality of the management process, open communication, and creation of global competitive culture. In comparison with the earlier discussion of HR practices supporting development of intemational managers, the focus on global managers may require a qualitative leap in aligning HR with the requirements of globalization, as all key HR activities are intimately linked to the effectiveness of the management development process. However, as in the case of intemational managers, intemational assignments are the essential development tool, although they may happen much earlier in an executive career as "global leaming" becomes the primary objective. Therefore, an effective execution of intemationa! transfers will continue to demand attention.

Conclusions and Implications

To be successful in global competition, companies need both expatriate/international and global managers. We have defined the former, in a narrow sense, as an executive in a leadership position that involves intemational assignments. The global manager is defined, in a broad sense, as an executive who has a hands-on understand-

HUMAN RESOURCE PLANNING

49

Human Resource Practices that Can Effectively Select and Develop Successful Expatriate Managers
Activil Staffing
( |i!i-.i.|,'l ."U'rn.il rt.\-i-Liili-n.-nr i,i Till TTiiiEiiigfrnonl piv-uii'ii. ,il>niji|

(References)
(1.2.3.4,5,7, 13. 18.20.22,24,25)

Cited Examptes

Use third-i:uuiiuy nuliunals tor inlemalional asslgnmenls Invesl in promoting iriemalional opponunities To sTudents Retruil sludents who have lived or were educaled abroad Recruil women for international a-ssignmenis Provide shon-icrm assignmenls to increase Ihe pool ot employees with international experience Base the seleclion of iniemational managers oit long-tenn hurniin resource foteca.st.-> Give new international assignees realistic career and job previews Interview Ihe spouse of the manager as part of the selection process Make iniemational asiignnient planning a part of a career development process Communicate the value of international assignments to the company's glohal mission Make international ii'-^ipnnn'nts .i uirnliEnin lor uilvantL-mfnt to scniiir niaiiap'riicnl

3M Colgate-Palmolive Colgate-Palmolive, Citibank

Avon, Coca Cola Foods Ciba-Geigy Dow Chemicals 3M. Mitsui & Co. USA

Whirlpool, Dow ChemiLiil. Arthur Andersen

nL'liouse Electric. 3M.

Training and Career Development

(3,5,6,8.9,11. 12.13,16.17, 18.21.24)

Bechtel. Nordson Ciba-Geigy 3M, UBS (E) Colgate-Palmolive

Provide expatriate tnanagers wiih technical training to enhance their International background Provide language training, cultural and business orientation For high-potentials, provide a challenging international assignment wilhin three to five years after entry Provide oppoitutiities to learn about international finance, marketing and other intem^onal functional areas Encourage international managers to manage a multicultural workfon:e Use intemalional :isMgnmenl as lop managi'intnt dcNclopmt'ni nn>l

Performance Appraisals and Compensation

Modify the performance evalualion system to incorporate ihe distincdve condition* of loial cokintrius Ensure timely perfonnance review Provide financial counseling for international managers Provide a relocation allowance and a reentry bonus Provide an equitable intemiitinnid aniipi-n-.irum pji-Viiyt

(10. I I . 12, 15.20,24)

KPMG-Peat Manvick

Expatriation Activities
Provide Ihe intetnational manager with ar orientation program before the assignment

(3,4,5.7,8.12, 13. 18, 19.20,21,22)

Dow Chemicals. Ciba-Geigy. Intel. Chevron Overseas Petroleum Colgate-Palmoiive Intel, Ciba-Geigy, Gillette Colgate-Palmolive, 3M, Ciba-Geigy, Dow Chemicals, Honeywell, Northern Telecom Colgate-Palmolive. Intel. Bechtel. Honeywell, Northern Telecom

Send the expatriate for a visit to the host country (provide a period of orientation abroad) Involve the family in the orientation program Bstahlish mentor relationships between expatriates and executives from home location for general career advice to reduce the "out of sigbl out of mind" dilemma Develop a network of contacts to keep the expatriate up-to-date on day-to-day activities of home-country operations for social support and information exchange Organize social activities at the foreign site iri order to faeiiitate exchange of information anii problem solving in an informal setting Assist [he expalriaie's spouse in fmding a job ASMS! expatriate in finding schools for children

Gillene. Intel

Repatriation Activities
Pian a specitic assignment for the retummg cxpairiate

(3.5.7,8, 12.13, 18. 19.21,22.24;

ABB. Dow Chemicals 3M, Monsanto. UBS. Honeywell 3M ABB Intel. Eiow Chemicals

Provide opportunities for the returning manager to use knowledge and skills leamed internationally Monitor career paths of international managers so that they are not relegated to the '"slow track" because of their international assignments Get the high-pertbrming international managers retogni/ed/promoted upor return home Assign the repatriated employee and family to a welcome group cotnposad of other farnilies wbo have lived abroad

Key to Rcfertntes; 1. Bi.:inuLl, iyS4 tEiltriic-il 2. BtJtk et ill . t T J ; I V .'. Hl(kt;n. I W J CS** M I S M S i . i ; 4.ri.pifliin,t, IW5 - inkTvi,, S. D C I T S Odiitiu. t W I S I t J J Elpali/l.'S MVC>.j: 6. rjunlrar i Kalcher, tflW- twcrv 7, t-ddmaTi n a t , tW2 - fi l4.SK US gnidualc sILfJeri,',); 8.Galei, IW4 - S U5H US HRMuniKetJi; . H a m ' . 1W4 - (": 10. Howard. 19tl - S (i(IEipaLs/27 US MNCsl; I I . Klaus, I W S - C : 12, Oddnu, t W I - S (Ifi.i EviKit.-/L!S M N C I , 13, (Mdou & Mendenhull, I W l - S 1135 EipUiflJS MNC=1; 14. Pudti, IVU - C\ 15. RcjnoUs, 1W> - C; t6. Rnihwell, l w ; C. 17, Scullion. IW2 - S (4J Bnrish MNCsl: 18. Seiben si al,. 19QS - (2 US M N C M ; I*. Shilling. tW.l - Inlerv JO, S,il,.m.iii. tWSa-liilervie-iJ^. 21. Sotnni, I W4h . Inlcmcws, 22. Solomon. tWMc tnlemews; 2J, Sleptwnw 4 Htatk. 199t - S (67 US Espats in Japan); 24. W k s . 1992-.S ( B 0 U 5 MNC<)^ 15. Wrrthcr el al., t W S - C S (3 US MNCs) - f : coniFptuat; " C ' S : C a s t Studs; " . S ; Survcv

50 'HUMAN RESOURCE PLANNING

ing of intemational business, has an ability to work across cross-cultural, organizational, and functional boundaries, and is able to balance the simultaneous demands of short-term profitability and growth. In short, global managers are defined by their state of mind, in contrast to expatriate/international managers who are identified by location as execulivcs in leadership positions that involve cross-border assignments (Pucik, 1997). In spite of this major conceptual difference, the review of research seems to indicate that at least some of the attributes of successful expatriate and global managers may be identical. They are related to five fundamental factors: professional and technical competence; relational abilities: leadership factors; family situation;

and cultural awareness. However, because of the differences between expatriate managers and global managers in their current and future roles in the organization, there are naturally also significant differences in expectations regarding the full set of desired competencies, role behaviors, and way of thinking. The requirements put on global managers are substantially more complex and dynamic, reflecting the ever-changing nature of the global competitive environment. The emerging emphasis on cultivating the manager's mind, versus the traditional emphasis on competencies in the job, may require rethinking the traditional HR approaches to global leadership development. First, truly global leadership development should focus on providing a broad spectrum of high-potential employees worldwide

Human Resource Practices that Support the Development of Global Managers

Staffing
Recruiting worldwide for positions anywhere in the world Staffing decisions support fast tran.sfer of knowledge across boundaries Selection criteria do not favor any panicular culture Implementing global job posting system The point of entry does not limit future opportunities [nvolving top management in the global staffing process

Career Development & Training

Training delivered by (runsnational faculty to multicultural teams Intemational assignments integrated Into the career-planning process Karly iniemaiiiinal experience encouraged Intemational assignments encourage global leaming Training stimulating a sense of cultural empathy and adaptabiliiv Intemational assignments can take on many forms, linked to a manager's development need.i Emphasis on socialization aspects of managemeni development

Performance Management & Compensation

Performance incentives and rewards reflect global coniribuiions Career opportunities equitable across the world Performance appraisals focus on global mindset and behaviors Flexible international compensation system to encourage "low cost" mobility Emphasizing rewarding careers rather than short-temi ouicomes only

Organizational Design
Designing jobs across boundaries to increase global leaming Focus on process, not on structure and procedures HR systems aligned with needs of transnational teams Removing HR barriers to organizational flexibility

Global Communication
Building intortnal communications across boundaries Promoiing a global competitive culture

riliiulh.m. Adlciil Bunholomf*. 1992^ Banlw ft (Jhoihjl, IW2: Evan;., IPS^; IWZ; KMS de Vries, IWiPuciL, I98J: l**n IWI; RhiiKsmilh. 1995: Sno*, tJsuson, SnclliHiunhnck, I W);Ticliy. IW2: Wi^nhcc, Wachlcl & Veak. IWi

HUMAN RESOURCE PLANNING

5I

one being the need to fill the global leadership with opportunities to acquire and enhance their bencb (i.e., the development of global managers). global leadership skills and capabilities (Pucik, The first step in developing global leaders is to 1997). Second, the purpose of international create a truly global HR function, as the ability assignments shifts considerably; learning from to develop managers with global mindset inside the experience becomes one of the key objecthe HR organization is one of the critical prereqtives. Finally, such a process starts with a very uisites influencing the ability of the organization careful selection of future global managers and to globalize. The HR function could and should continues throughout a manager's career, touchserve as a role model of globalization; therefore, ing all traditional HR activities. the HR leadership needs to have a well-rounded Obviously, the HR function therefore plays an knowledge of global HR and business issues, indispensable role in the development of future including a deep understanding of the new global global leaders. In fact, taking the lead in develcompetitive environment and [he impact it has on oping global leaders provides HR executives the management of people worldwide. witb an excellent opportunity to become an integral player in implementing global business stratFootnote egy and influencing organizations' ' This review is based on major competitiveness (Galbraith, 1992; European and North American jourKeller & Campbell, 1992; Keslen The emerging nals. Contributions from Asia are 1995; Yeung & Ready, 1995; emphasis on covered only to the degree they Lawson & Limbrick, 1996). The cultivating the appear in Western publications. integrating capability of the HR function in leveraging key global manager's mind, Biographical Sketches talent and its capacity to play versus the tradithe role of global catalyst can Vladimir Pucik is professor at the undoubtedly determine its ability International Institute for tional emphasis to become a value-adding function Management Development (IMD) in on competencies in the organization. Lausanne, Switzerland, Previously, in the job, may he was Associate Professor and Focusing on the operational Academic Director of International responsibilities of the HR function, require rethinking Programs at the Center for Advanced efforts should be aimed to ensure Hutnan Resource Studies at the ILR successful international assignments the traditional HR School. Cornell University. His and other developmental experiapproaches to research interests include manageences that help managers and execuglobal leadership ment practices in glohal firms, tives worldwide to enhance their transtiational human resource poliglobal perspective. This implies development. cies, international alliance .strategies. evaluating and aligning the key and comparative management, with a staffing, development, and perforparticular emphasis on the Far East and Europe. mance management processes so they are consisHe has published extensively in academic and tent with what we know already accounts for the professiotial journals. Dr. Pucik's most recent critical factors in developing global managers. major work is Globalizing Management: Another value-adding opportunity for the HR Creating and Leading the Competitive function is to Organization. He has consulted and conducted support global integration, coordination, and workshops for major corporations worldwide. learning by creating favorable conditions for the Dr. Pucik also teaches regularly in a number of diffusion of global knowledge and perspective international e.xecutive programs. throughout the firm, thus creating a favorable environment where global mindsets can flourish. Tania Saba is an assistant professor in the From a strategic perspective. Eichinger and School of Industrial Relations at the University Ulrich (1995) recently reviewed the future trends of Montreal. She was a visiting fellow at Cornell facing HR professionals. They suggested that in University for the academic year 1995-1996, a number of areas, the traditional HR competenconducting research in the area of international cies need to be enhanced, or new competencies human resource management. Her research developed. Many of the new requirements listed interests include older workers' management. reflect the challenges of globalization, the critical
51 HUMAN RESOURCE PLANNING

cateer management, and human resource management in international firms. She has published in academic and profes.sional journals on various issues in career management.

Evans, P,A,L. 1992, "'Developing Leaders and Managing Developmenl,'"H/Vipcon Management Journal. 10(1); 1-9, Feldman. D,C. and Tompson, H,B, 1992, '"Eniry Shock. Culture Shock: Socializing Ihe New Breed of Global Managers," Human Resource Management. 31 (4): 345-362, Forsler. N, 1992, "'International Managers and Mobile Families* The Professional and Personal Dynamics of Trans-national Career Pathing and Job Mobility in the \'i'K)^." International Journal of Human Resource Management, Vol, 3, (3): 605-623. Galbraith. J, 1992, '"Positioning Hunuin Resource a,s a Value-Adding Function: The Case of RoL'kwell Inlematmnal," Htiman Resource Management. 31(4): 287-300, Gates, S, 1994, "'The Changing Global Role of the Human Resource Function." The Conference Board. Repon Number 1062-94-RR, New York, Gertsen. M, 1990, "intercuitural Competence and Expatriates," International Journal of Human Resoiiirv Management. 1(3): .Ml-362. Gould, S, and Penley. L.E, 1985, "A Study of the Correlates of the Willingness to Reku'ate,".Acut/cmv of Management Journal. 28(2); 472-47fi, Gregersen. H.B. 1995, "Keeping High Performers After International Assignments; A Key to Global Executive Development." Journal of International Management. Ill): 3-31, Gregersen. H.B, 1992, '"Commitments to a Parent Company and a Local Work Unit Dtuing Repatriation." Personnel Psyehology, 45: 29-54, Harrison. K,K, 1994, "Developing Successful Expatriate Managers: A Framework for the Stnictural Design and Strategic Alignment of Cro,ss-Cullural Training Programs," Human Resouri e Planning, 17(3): 17-35, Harvey, M, 1996, "'Addressing the Dual-Career Dilemma," Htiman Resource Planning. l9(4):!8-39, Harzing. A.W, 1995, 'The Persistent Myth of High Expatriate Failure Rates," International Journal of Human Resource Management. 6(2|: 457-474, Hays. R, 1974, "'Expatriate Selection; Insuring Succes.s and Avoiding Failure." Journal of International Bu.siness Studies, 5( I): 25-.17, Hogan. G,W, and Goodson, J,R. 1990. "The Ke> lo Expatriate Success," Training and Development Journal. January: 50-52. Howard, C,G, 1980, "The Expatriate Manager and ihe Role of the MNC," Personnel Journal. Ociober: 838-844, Howard. C,G, 1992, "Profile of the 21 si Century Expatriate Manager,"

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