Transcript GRP5 the role of family in international assignments 2

THE ROLE OF FAMILY IN
INTERNATIONAL ASSIGNMENTS
Presented By:
Boriana Gatcheva
Mark Lau
Milana Targan
Nancy Zhong
November 16, 2004
PRESENTATION OUTLINE
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Quick Facts
Family Concerns
Recruitment & Selection
China
USA
Denmark
Training
Career Counseling
Allowances
Family Support
Performance Evaluation
Repatriation
Conclusion
QUICK FACTS
• 80% of midsize and large companies send personnel
abroad
– 45% plan to increase (Black & Gergersen, 1999)
• An average expatriation assignment = 2.7 years
– With the cost being approximately $1 million per expatriate
(Business Wire, 1999)
• About 63% of all relocation offers are turned down
because of spousal employment concerns
(Laabs, 1999)
• When accepted, over 60% fail because family
members are unable to adjust to the move
(Lewis, 1998)
FAMILY CONCERNS
• Moving anxiety
• Leaving a career
• Not being able to
work in the new
location
• Language barriers
• Immersion in the new
culture
• Child-care and
schooling
• Housing
• Pets
• Relocation costs
• Economic and tax
implications
• And much more…
RECRUITING STRATEGY
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GOAL: To attract and retain candidates
Base Salary
Hardship Premium
COLA
Host-Country Housing
Educational Allowances
Spousal Assistance
Benefits
SELECTION
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Technical ability
Cross-cultural suitability
Family requirements
Country/cultural requirements
Company’s requirements
Language abilities
CHINA-”ZhongGuo” the Center
country – Middle Kingdom
FACTS ABOUT CURRENT CHINA
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Per capita GDP in 2003 $1,000
Massive cheap labor
Welcome foreign investors
China become a giant
manufacturer
• Lack of environment
regulations
• Air pollution
• Deforestation for urbanization
- Lack of fresh water
• Polluted rivers
• Widened gap poor and
wealthy
• Unemployment
• Homeless
• Socially unjust
• Corruptions and bribery
• Crime increases
SOCIAL CUSTOMS
• Confucius reigns – pursue general harmony and
orderly society
– Well defined personal relationship
• Male head at home
– Boss are superiors at work
• Respect elderly
• Group decision – authority-directed steps
– Bureaucratic and hierarchical
– School authorities decide your major
• Higher position with higher authority
SOCIAL CUSTOMS
• Chinese would be impressed and delighted if
you know some Chinese characters and
culture
– Very friendly to foreigners
• Gift giving – An art to serve a purpose
GUANXI - POWERFUL ASSET
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Connections
Top down social institutions
Network of contacts and personal relationships
Whom they do favors for and whom they ask
for favors from
• Guanxi - Many business deals cut this way
– Without it – nothing can accomplished
FAMILY VALUES
Work before family life
• More wealth bring more glory to family, society and
the nation
• Family-oriented
– Willing to self-sacrifice to support family
• One child policy – favor boys
WELL-TREATED FOREIGNERS
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Foreigners getting preferential treatments
Moderns living quarters
Quality meals
Ready to learn from expatriates
A simple pride from Chinese
CHANGING CHINA
• Improve the outlook – many beautification projects –
cosmetic
• Build and repair highways – improve conditions
• Build up communication systems
• Getting ready for 2008 Olympic Games
RIGID POLITICAL POWER
• Social unrest - 58,000 incidents in 2003
• Persistent government corruption
• Seizure of farmland for development
and layoffs – privatization
• Results – government control news
reporting and media information
USA OVERVIEW
• Mastery country- advance technology and
strong military power
• Individualistic- “football” metaphors – An
individual gets all the honor
• High pay CEO – highest in the world - average
near 2 million per year
• “Low-Context” in communication - open and
direct
USA OVERVIEW [con’t]
• Short-term oriented – monthly and quarterly
profit reviews
• Contract-oriented
• Time as commodity – need to see results as
efficiently as possible
• Family before work
• Lack of child care
WORKING TOGETHER
• Open mind
• Respect each other
• Learn and appreciate
different culture and
custom
• Be flexible
• Build up friendship and
trust
DENMARK
COUNTRY OVERVIEW
Country
Land Area
(sq. km.)
Population
(000)
USA
9,161,923
China
DK
Gov. type
Languages
Literacy
293,027
GDP
per
capita
$37,800
Federal
Republic
English
97%
9,326,410
1,298,847
$5,000
Mandarin
91%
43,094
5,413
$31,100
Communist
country
Constitutional
Monarchy
Danish and
English
100%
DANISH CULTURE
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Law of Jante
Career Success and Quality of Life
Low Context vs. High Context
Cultural Dimension Scores: (Power Distance,
Individualism, Masculinity, Uncertainty Avoidance, Long-Term
Orientation)
Country
USA
China
DK
PD
40L
80H
38L
ID
91H
20L
80H
MA
62H
50M
14L
UA
46L
60M
53M
LT
29L
118H
44M
LABOR MARKET
• Vacation Pay- 6 weeks
• Leave Policies
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education leave (up to 1 year)
maternity leave (14 weeks)
parental leave (1 year per child)
paternity leave (10 days off)
• Employment Law
WORK- FAMILY BALANCE
• Social Life
– Family interfaces
– Corporate interfaces
• Transportation
• Childcare
PRE-DEPARTURE TRAINING
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Language Training
Cultural Training
Social Training
Career Counseling
LANGUAGE TRAINING
• Classroom Training
• Web Based Training
• Continuing Language Training
CULTURAL AND SOCIAL TRAINING
• Classroom Training
• Web Based Training
• Preliminary Visit
CAREER COUNSELING
• Spouse
• Career Assistance
ALLOWANCES
• Education Allowance
• Home Leave Allowance
FAMILY SUPPORT
• Mentor
• Family Support Service
PERFORMANCE EVALUATION
• Quarterly Review At Corporate
Headquarters
• 5 Day Review Process
• Debriefing
• Briefing
• Counseling
REPATRIATION
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Counseling
Debriefing
Career Counseling
Career Assistance
CONCLUSION
Because the expatriate is one of the most
valuable resources for a diversifying, growing,
global corporation, the organization should
focus on an expatriate plan that also includes
family friendly policies to minimize the
stresses associated with having family
members on an international assignment. And
in doing so would maximize the corporation’s
most valuable resource: The Expatriate.
THANK YOU!