Expatriate Mangers - A Historical Review - 2006

International Journal of Management Reviews (2009)
doi: 10.1111/j.1468-2370.2009.00261.x
Expatriate mangers:
A historical review
ijmr_261
275..296
Michael Harvey1 and Miriam Moeller

As expatriate managers continue to be a viable means for exercising control over foreign
operations, they can have a direct impact on organizational performance, and therefore a
delineation of the history of these key leaders in order to enhance our understanding of their
continued significant impact is a laudable goal. The paper discusses each stage of the human
resource management process, beginning with the identification and concluding with the
repatriation stage of expatriate managers. Each stage is discussed in terms of the successes
as well as problems/failures associated with the individual, organizational, environmental
and systemic unit in mind. The paper concludes with future implications emphasizing the
necessity to create new and/or enhance current practices relating to the development of
expatriate managers maximum global impact depending on the evolving nature of the
globalization of business.
Introduction to Globalization and HRM
In a recent study by Colakoglu and Caligiuri

(2008), the authors observed that there are
currently 850,000 subsidiaries of multinational
corporations (MNCs) operating globally. A
GMAC global relocation survey found that
65% of MNCs surveyed are expecting expatriate manager numbers to rise steadily over the
next decade (GMAC/SHRM 2006). In support,
a study by Fernandez et al. (2006) found that
600 French firms were operational in China
with more than 150,000 expatriate employees
and the number of expatriates is expected to
double in the next five-years. These studies
underline the growth in the expatriate cadre
worldwide, making it imperative to reprise
critically this lynchpin staffing option. As a
result, it is anticipated that there will be a
growing need to use expatriate managers who
are typically relocated overseas in leadership
positions. Given the growth and functions
performed by these managers, it is anticipated

that these expatriate managers will have a
significant impact on the success of MNCs.
There appear to be five key issues facing
the MNCs global human resource management (HRM) in the next decade: (1) developing
flexible/adaptive competencies in their global
workforces; (2) addressing the leadership gap
which places future global growth at risk in
many organizations; (3) a need to develop the
means to find, motivate and retain superior
global management talent; (4) developing a new
set of performance metrics for global management; and (5) HRM taking on a more strategic
orientation to talent management and partnering management to develop a strategic global
human resource management (SGHRM) perspective. Almost all these keys are centered on
expatriate managers (Harvey et al. 2002).
The shift to a global outlook for many
MNCs is implicitly contingent on having an
adequate number of global managers to staff
2009 The Authors

Journal compilation 2009 Blackwell Publishing Ltd and British Academy of Management. Published by Blackwell Publishing Ltd,
9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA
International Journal of Management Reviews
Volume 11
Issue 3
pp. 275296
275
Expatriate mangers
the anticipated growth of MNCs globally. It
appears that organizations must develop a
cadre of expatriate managers who have a global
mindset as strategic focus when competing in
the global marketplace (Begley and Boyd 2003;
Kedia and Mukherji 1999; Paul 2000). These
expatriate managers must develop a pluralistic
management perspective that encourages and
maintains multiple perspectives in order to
solve complex global problems (Aguirre 1997;
Harvey et al. 1999; Reynolds 1997).
This paper examines the history of expatriate managers as central to the growth of MNCs
and an assessment of their future use in global
organizations. Each step in the HRM process
is discussed in the following sections of the
paper. Each of the stages will follow the same
steps to examine the expatriate manager: (1)
successes for each stage of the process; and (2)
problems/failures for each stage of the process.
The HRM Process
The HRM process for expatriate managers

incorporates eight stages (e.g. identification,
selection, training and development, compensation, performance appraisal, retention
and turnover, succession planning and repatriation). Each of these stages of the HRM process
for expatriate managers will be examined as
well as being summarized in Table 1.
Identification of Expatriate Managers
Successes in the identification of expatriate

managers. Given the growing importance of
developing qualified global managers, researchers have attempted to identify the managerial
competencies that are essential to manage
effectively in a global context and, in particular,
in emerging economies, such as cultural
awareness, developing a global (geocentric)
perspective, heightened cross-cultural skills,
that is, communications, learning, adaptation,
ability to adjust to new cultural environments
rapidly, equal and equitable acceptance of
individuals from different cultures, emotional
energy, ability to address cognitive complexity,
276
psychological maturity and, in addition,

personal characteristics, such as self-reliance,
empathy, sense of humor, curiosity and strong
sense of self (Adler 1995; Arthur and Bennett
1995; Black and Stephens 1989). In an effort
to delineate the ideal characteristics, human
resource managers are confronted with a
paradoxical situation where the candidate pool
asthmatically approaches zero.
To compete effectively in a global marketplace, companies must develop a unique set of
managerial skills to position the company
appropriately in emerging markets. The resulting core competence of global companies rests
on the local adaptation of a global strategy that
is based on efficiency of action of contextual
relevance to local consumers in developing
countries. Such a distinctive corporate signature to act locally helps to ensure local acceptance of products/services without reducing
the efficiency necessary for global competition
(Bonache et al. 2001; Hall 1993; Hamel and
Prahalad 1989).
New expatriate managers are expected to
develop effective local strategies which would
embody: (1) an external focus on local government relations; (2) cultural leadership; (3)
social networking; (4) teamwork; (5) a keen
understanding of the dynamics associated with
the consumer and competitive environment;
and (6) a high level of local social knowledge
of ways to compete effectively (Caligiuri and
Stroh 1995; Culpan and Wright 2002; Harvey
and Novicevic 2002c; Martinez and Quelch
1996; Sohn 1994). These soft skills, derived
from the context-specific social knowledge,
are becoming the key determinants of success
for country managers in developing countries.
Problems in the identification of expatriate
managers. There are a number of problems
that could occur when attempting to identify
potential candidates for expatriation. The
primary problem starts with the definition of
the potential pool of candidates (e.g. outside,
inside the organization or some combination
of the two pools of potential candidates).
Frequently, HR managers have a predisposition
2009 The Authors

Journal compilation 2009 Blackwell Publishing Ltd and British Academy of Management
Knowledgeable IHRM
managers
Separate IHRM process/
procedures
Mentoring program
Cultural adaptability
2009 The Authors

Inadequate training
programs
Commitment to assignment
Bonache and Brewster 2001;

Selmer and Leung 2003a;
Templer et al. 2006; Wasti
2003
Inadequate compensation
programs
Dual career issues
Lack of language capabilities

Inadequate support for the
employee/family
Daniels and Insch 1998; Harvey
1997a,b; Takeuchi et al. 2002
Downes et al. 2002;

Harzing 2001; Hocking
et al. 2004; Novicevic and
Harvey 2004; Peppas 2004;
Stahl et al. 2002
Lack of career planning
Inadequate orientation
Aycan et al. 2000; Chen and Tzeng

2004; Deller 2006; Harvey et al.
2004; Harvey and Novicevic 2002c;
Holopainen and Bjrkman 2005;
Selmer and Leung 2003b
Family issues
Unwillingness to be relocated
Extensive foreign travel
Adapted from Harvey and Novicevic (2001).
Representative
research
Failure
Representative
research
Repatriation program
Technical competence
Previous cultural adjustments
Cross-cultural training
Big 5 personality characteristics
Success
Organizational
Individual
Expatriate
performance
Table 1. Predicting success/failure of expatriate managers
Selmer 2006a,b; Wang and

Sangalang 2005
Hostility (climate,
healthcare, etc.) Of
environment
Cultural taboos (women,
minorities)
Emerging markets
Restrictions on HR by
government
Selmer 2000; Shay and Baack

2006; Wasti 2003; Wang and
Kanungo 2004
Similarity of social
institutions
Relocation to similar
economy/culture
Reduced government
restriction
Similarity of languages
Environmental
Brewster and Suutari 2005;

Harvey et al. 2002; Novicevic
and Harvey 2001
Consistency of systems
globally
Bonache et al. 2001; Duoto
2002; Minbaeva and
Michailova 2004; Novicevic
and Harvey 2001; Oddou et al.
1995
Centric IHRM orientation
Ad hoc case-by-case
negotiations with
candidates
Inadequate career
development process during
foreign assignment
Ineffective performance
appraisal system
Flexibility of IHRM system
Increased use of technology
Integrated IHRM system
Planning perspective
Systemic
September
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Expatriate mangers
to hiring managers outside the company when
first starting up a new venture (e.g. expanding
into the international marketplace). Therefore,
they will attempt to identify managers in the
foreign market to represent the organization
in the short run. This focus on external candidates creates problems in controlling the overseas operations as well as building the growth
of the overseas organization.
A second problem is associated with the first
problem (inside/outside) and that is attracting a
large enough pool of candidates to satisfy the
staffing needs of the MNC. If only one pool of
candidates is cultivated (e.g. external candidates), HRM frequently have difficulty in identifying a large enough pool of candidates or in
the timing of need for candidates and identification of candidates. If this problem is not
addressed early enough, the entire growth of
the MNC may hinge on this one issue. To
address this problem, some MNCs will contract employees (e.g. agents, brokers or the
like) to represent the company in the transition from domestic to multinational. There are
additional issues with using contract employees to open overseas markets that will have to
be addressed.
A third problem is attracting candidates once
they have been identified as having the characteristics to do the overseas job. Internally, this
manifests itself as a lack of willingness to
relocate overseas for a number of reasons. The
refusal rate for managers to expatriate has been
growing at a steady pace in many countries
(Dowling and Welch 2005; Konopaske et al.
2005; Tharenou and Harvey 2006). Reducing
the level of apprehension relative to relocating
to an expatriate assignment frequently necessitates increasing the benefits/compensation to
the expatriate. In addition, family-related
perks may also have to be increased. Another
problem when trying to attract high-profile
external candidates is that they may have a
reluctance to be identified as working for a
western MNC. This move may affect their
careers significantly if they want to return to a
home-country organization. It is frequently
described as the traitor stigma.
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The level of acceptable diversity may also

affect potential candidates for positions with
MNCs. There may be a maximum number/
percentage of outsiders and/or foreigners
that will be acceptable in the organization.
While this policy is infrequently articulated,
it can be found in companies that have a
well-articulated organizational culture that is
based upon the home country of the organization. Therefore, outsiders may be viewed as
less attractive candidates, reducing the
pool of acceptable candidates for overseas
assignments. This would be similar to gender
issues that are implicit in staffing overseas
assignments. These problems are frequently
couched as cultural biases of the country in
which the manager is to work (e.g. an
example of negative bias for women would be
to question the acceptance of women in the
Middle East, making it a straw issue to reduce
diversity).
The lack of a well-articulated set of career
paths for overseas managers also becomes a
problem when attempting to recruit overseas
candidates. Owing to the newness or the
complexity (or both), the HRM may not have
career paths for managers being hired or sent
overseas for three to five years. This lack of
clarity of purpose of the assignment or how
the assignment fits into the career path of the
candidate reduces the willingness of managers
to relocated overseas or to join a company
that appears to have a temporary and/or a
short-term orientation of overseas positions.
This can result in a negative opinion of foreign
assignments.
Selection of Expatriate Managers
Successes in the selection of expatriate managers. The success of expatriate managers has
been researched in many studies, and success
has been attributed to a number of critical traits
in successful expatriates: (1) empathy; (2) respect;
(3) interest in local culture; (4) flexibility; (5)
tolerance; (6) technical skills; (7) initiative; (8)
open-mindedness; (9) sociability; and (10) a
positive self-image (Aycan et al. 2000; Chen
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and Tzeng 2004; Harvey and Novicevic
2002a,b; Ryan et al. 1999). While researchers
have examined the traits that are found in
successful expatriate managers, the problem
comes when trying to determine which trait is
more important or critical in the selection of
expatriate managers and, in addition, how to
assess these attributes relative to the assignment characteristics and how to examine these
traits in the selection process. Additional
problems that arise when selecting candidates
for expatriate assignments include: (1) lack of
reliability and validity of assessment tools to
measure expatriate characteristics; (2) difficulty of assessing the impact of job, institution
and cultural change on expatriate success (i.e.
the characteristics beyond the personal traits of
the expatriate); (3) lack of a standardized and
integrated process for preparing candidates for
expatriate assignments; (4) unreliable assessment of the impact of the expatriate spouse
and family on the expatriate success; (5)
uncertainty in predicting adjustment demands
(i.e. success in making the change) and predicting effectiveness (i.e. ability to accomplish
the goals of the assignment) of the expatriate
manager; and (6) the impact of the reality
shock on the potential expatriate candidate,
as no assignment can be designed in terms
deemed important for successful expatriation
(House et al. 2004; Mayerhofer et al. 2004;
Novicevic and Harvey 2004; Scullion and
Collings 2006). Therefore, past research on
expatriate success (and failure) has not found
consistent answers to the key questions that
remain unanswered for global assignments:
which are the key individual attributes? For
which foreign environment? To accomplish
what set of tasks? In what time period?
Also, expatriation has been widely viewed in
past research as a headquarters-to-subsidiary
management transfer Many of the factors influencing the success of expatriation (i.e. to mention a few: escalating cost, low productivity,
failures, difficulties in expatriating professional
dual-career couples) have been analyzed within
this paradigm (Harvey 1996; Wederspahn 1992).
At present, expatriates are being transferred
2009
from other subsidiaries, and more are being

brought in from outside the organization (i.e.
already with expatriate experience).
Problems in the selection of expatriate managers. While there is not a consensus on the rate
of failure of expatriate managers among practitioners and academics, the range of failure
is typically stated as between 20 and 40%
(Dowling et al. 1999; Harvey 1996; Mendenhall et al. 1987). The large variance in this range
is explained, in part, by the ambiguous definition of expatriate failure (i.e. early assignment
withdrawal vs reduced effectiveness in the
overseas position). Regardless of the definition
used, there is sufficient evidence to indicate
that ineffective expatriate managers incur large
direct and indirect costs. The direct cost (i.e.
training, relocation, compensation and repatriation) is estimated at between $200,000 and
$500,000 per candidate for MNCs, and USbased firms lose over $6 billion annually in
failed overseas assignments (Harvey and
Novicevic 2000, 2001). In addition, the indirect/
implicit cost (i.e. reduced service to customers,
the negative impact on implementing strategy,
strained relations with home country networks
and government officials) are thought to surpass
the direct cost of expatriate failure (Scullion
and Collings 2006; Wederspahn 1992).
One of the more salient categories of the
cost of expatriates is that incurred by expatriate
managers who show inadequate performance
but remain in their overseas assignments,
damaging the organizations performance,
reputation and relationships (Harzing 1995).
Another category of costs that is frequently
overlooked is that related to the career impact
of a failed expatriate assignment as damage to
managers careers (Tung 1987). This damage
to the self-esteem is carried over to others in
the organization, reducing their willingness/
enthusiasm to undertake foreign assignments.
While a multitude of reasons have been
advanced for the high failure rate of expatriates, e.g. lack of training, inadequate selection
criteria, ineffective compensation programs,
ineffective leadership, etc., one dimension has
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Expatriate mangers
historically been deemed the primary reason
for expatriate failure, that being expatriate and
family adjustment issues (Dowling et al. 1999).
To date, the majority of expatriate assignments have been to developed countries,
suggesting that adjustment issues will be accentuated in the future, given the increased need to
manage operations in developing countries,
where it is anticipated seven-eighths of the
population will be located by 2025 (Webb and
Wright 1996). From an adjustment perspective,
the greater the economic and cultural distance,
the more likely the family (as well as the expatriate) will have difficulty in acclimating to
the new environment (Aycan et al. 2000;
Haslberger 2005; Haslberger and Brewster 2005;
Jassawalla et al. 2004b; Kraimer et al. 2001).
An evolving issue that will inevitably complicate the overseas adjustment of the family
and expatriate manager is the growing number
of dual-career couples (Black and Gregersen
1991a; Bonache 2005; Harvey 1997b). Even in
a domestic context, the labor force participation
of spouses has greatly reduced the likelihood of
family migration (Harvey 1997b). In international dual-career situations, there is both a
direct and an indirect influence on the couple/
family adjustment. The direct impact can be
illustrated by the potential loss of the trailing
spouses income and potential future earnings
during the duration of the expatriate assignment. Indirectly, the trailing spouse can experience heightened stress and tension, which
may translate into dysfunctional family conflict, which in turn can spill over into the work
environment of the expatriate manager (Harvey
1996, 1997a; Takeuchi et al. 2002, 2005).
In a recent survey of MNC human resource
managers, a vast majority of the respondents
felt that dual-career issues will become a more
acute problem in international assignments in
the near future (Harvey 1997a,b,c). In addition,
when dual-career couples are expatriated, the
support required from the MNC is substantially
increased, and the productivity of the expatriate
is typically lower than expected (Harvey
1997a). Frequently, dual-career couples are
entering a commuting relationship during the
280
expatriation of one of the spouses, attempting

to mitigate the negative consequences of
disrupting the other spouses career. It is
estimated that 25% of dual-career couples do
not move the family/spouse, but continue to
commute between the home and host countries
when one of them is relocated overseas (Bunker
et al. 1992).
Compensation of Expatriate Managers
Successes in the compensation of expatriate

managers. While the selection of expatriates
relies heavily on the attitudes exhibited and
the personality characteristics/traits of an individual candidate, the appropriateness of compensation is fundamentally more difficult to
delineate and evaluate, owing to its multifaceted nature. According to Bonache (2006),
the objectives of an international compensation
system include the following: (1) to attract
personnel for the international service; (2) to
be cost effective; (3) to be fair with respect to
local employees and other expatriates from
either the same or a different nationality or
with respect to those located in another location; (4) to facilitate re-entry; and (5) to
support the organizations international strategy. Adding an additional layer of complexity,
these criteria are dependent upon the context
in which the expatriate is to work. In other
words, the authors (Bonache 2006) suggest
that the impact of an international compensation system may affect individuals positively or
negatively, depending on whether the context
encompasses the host country, home country
or the organization from a global standpoint.
Needless to say, determining a satisfactory
package for both the employee(s) and organization may pose several seemingly impossible
to resolve problems in such a complex task.
The elements constituting a common compensation package include items such as base
salary, benefits, allowances of various kinds
(e.g. relocation expenses, housing allowances,
education allowances, hardship allowances)
and taxes (Hodgetts and Luthans 1993). These
elements, in addition to the naturally occurring
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failure rates due to internal/external conditions
(i.e. inability to adjust to cultural environment,
lack of emotional maturity, lack of technical
competence, lack of motivation, etc.), can
account for a variety of successes and disappointments in an expatriates career path within
an organization. One way to handle the compensation system effectively is to ensure a
minimal impact of failure. This is not easily
accomplished, owing to what appear to be
higher failure rates associated with expatriate
assignments than with their domestic counterparts and the consequent monetary loss to the
organization (i.e. over $250,000 per expatriate).
For example, Coca Colas philosophy for why it
performs well in the global marketplace rests
on the foundational beliefs of their human resources strategies and programs implemented.
Their extensive and targeted search for talent,
which allows them to be transferrable over
various geographic regions, has aided Coca
Cola in gaining a noteworthy global status, but
also in ensuring that they retain employees over
a long period, owing to their multi-faceted
nature and applicability in various geographic
areas. The success of Gillette, similarly to Coca
Cola, is based on their International Graduate
Training Program to groom local talent in
developing nations (Hodgetts and Luthans
1993). The bottom line is that each MNC/global
organization must ensure that compensation
packages are developed to meet their internal
capabilities and simultaneously adhere to their
external demands.
The frame-of-reference for the compensation context may again change when expatriates have completed their overseas
assignments and are called back to the homecountry organization. Accordingly, their compensation package will change to meet the
internal and external demands of the organization. It could be argued that the expectations of
an expatriate upon return from an assignment
may be jaded by the allowances given in the
beginning stages of expatriation. Therefore,
much repatriation adjustment deals with adjustments made more from a psychological than a
monetary perspective.
2009
To date, no universal, global compensation

strategy exists. However, current practice
suggests that organizations employ qualified
people to work in the human resource department handling compensatory issues. Owing to
the heightened complexity regarding MNC/
global compensation, the above-mentioned
issues have more recently been tackled from
a systems standpoint. In 2007, IBM patented
a system for global employee compensation.
This system consists of: (1) means to store a
single instance of global employee data; (2)
means for global shared services input; (3) a
country-specific gross-to-net calculator; and
(4) means for global shared systems support
output. Technically speaking, the system provides a single worldwide employee compensation capability. While this system is still in its
early stages of approval from the larger organizational society, it has the potential substantially to replace significant human interaction
and thus keep the resulting labor costs to a
minimum. The primary objective of this
system is to provide an organization with a
system capable of handling an employees
compensation on a global spectrum. This
would incorporate: (1) enhanced global stock
option administration capabilities; (2) compliances with laws and regulations in a global
manner (Gardner 2007). It is also IBMs intention to make this system as user friendly as
possible, to allow for an effortless transition
into the global marketplace.
Problems in the compensation of expatriate
managers. There is a scarce amount of theory
and/or empirical research on compensation of
global managers, given its importance, primarily due to the complexity of the issues
surrounding compensation in differing environmental contexts (Black et al. 1992; Harvey
1993a; Hodgetts and Luthans 1993). Frequently, academic researchers come to the same
conclusion: there is a need to examine the
salary and benefit practices of MNCs (Dowling
1989). Many MNCs have experienced significant problems setting equitable compensation
programs for expatriate managers. This is
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Expatriate mangers
revealed when expatriates being repatriated are
debriefed from their foreign assignments. In a
classic survey, 77% of the expatriates surveyed
were dissatisfied with their expatriation salaries and benefits, and their international compensation packages in general (Black 1991).
The complexity of developing a systematic
compensation program for expatriates, nationals and third-country nationals working in a
variety of different socio-economic environments (i.e. differing levels of economic development and varying cultural distances from the
expatriates host country) requires more than
relying on structural, corporate-wide solutions
(Bartlett 1981). The amount of empirical evidence on the interaction between compensation strategy and national culture and level of
economic development of an economy is practically nil (Gomez-Mejia and Welbourne 1991;
Harvey 1993a; Milliman et al. 1991).
It would appear that here are six key issues
surrounding international compensation. Discrepancies between compensation programs for
expatriates, local nationals and third-country
nationals frequently appear as a key compensation issue when implementing a compensation
program globally (Harvey 1993a,b). This difference in compensation between employees in
foreign subsidiaries exacerbates the trust and
commitment of overseas employees. In addition,
expatriates typically go through an extended
adjustment period (Black and Gregersen
1991a,b; Black and Mendenhall 1991) in which
their performance in the job is diminished.
Their co-workers observe this and can become
resentful of the expatriate being paid up to five
times as much to perform the same/similar job
(Harvey et al. 2001; Wederspahn 1992).
A second problem that affects the fairness
of expatriates compensation is the impact of
the stage of the family life cycle on the overall
compensation demands. A vast majority of
expatriates do not feel that stage of the family
life cycle impacts compensation equity, which
needs to be adjusted according to the different
stages of the life cycle. There is frequently
concern that, as executive families move
through various stages of the family life cycle
282
during their foreign assignments, the compensation and fringe benefits necessary to meet the
executives and families needs do not keep up
with these changes in status. The mix of components and their resulting costs create problems on an absolute basis but become even
more problematic in comparisons between
executives of different nationalities in similar
positions within the corporation.
Problems that have become more apparent
as the number of expatriate executives has
increased are those associated with the
repatriation stage of the assignment. While
this set of unique problems has been known
for some time, many companies have not
devised adequate programs to deal with repatriation (Black 1992; Harvey 1989). Expatriates typically complain that compensation/
benefit problems were significant upon
re-entry to the domestic organization and
home-country environment. Many expatriates
feel that repatriation was more severe because
a repatriation program should have been
addressed before the foreign assignment.
When the executives and families returned
from their foreign assignment, very little could
be done to relieve the resulting financial pressures (Harvey 1982; Hyder and Lovblad 2007;
Johnston 2007; Kendall 1981; Lee and Liu
2006a,b; Linehan 2002; Paik et al. 2002).
An additional problem considered to have a
substantial impact on international executive
compensation programs is the problem of
dealing with an existing compensation program
that is no longer suitable for the executive or
assignment (i.e. the compensation legacy, We
did it this way in the past). The compensation
process legacy is a troublesome problem identified by expatriates if they have longer than
average overseas appointments. The longer the
expatriate is assigned overseas, the more likely
the level of discrepancy in compensation with
domestic counterpoints. The effectiveness of
the total compensation evaluation process
(e.g. the level of similarity and/or dissimilarity
of compensation programs domestically and
internationally) was deemed a problem by most
expatiate managers.
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Human resource managers appear to
struggle the most in discerning expatriate
allowances/hardship pay in less-developed and
developing economies. Concomitant problems
occurred when repatriating these same expatriates from less-developed and developing
economies. This predicament is intuitively
logical in that the economic disparity between
the US and less-developed economies is the
greatest. Therefore, the expatriate managers
are accustomed to a standard of services/
products that is difficult to attain, if at all, in
less-developed economies (Harvey et al. 1999;
Selmer 2000, 2001, 2006a,b; Selmer et al.
2007). The question then becomes how much
should the executive receive to forego the purchase of the service/product or to purchase the
product on the black market? The converse of
this situation occurs when the executive is
repatriating to the domestic environment from
this divergent economic situation. The perks
have become a way of life, or a lifestyle
has been developed to which the family has
become accustomed over an extended period.
When these fringe benefits are recalibrated for
the domestic environment, a reality shock for
the manager, and most particularly for the
family, results. At the same time, the cost of
re-establishing the domestic family lifestyle
(i.e. housing, schools and entertainment) had
all increased during the familys foreign
assignment. The compound problem of losing
foreign assignment perks and the increased
cost of the normal domestic environment has
a dramatic effect on the stability of family life
and the executive (Black 1991, 1992; Napier
and Peterson 1991).
Performance Appraisal of Expatriate
Managers
Successes in performance appraisal of expatriate managers. Deciphering the complex web

of issues associated with expatriate managers
performance appraisal is a daunting task. Performance appraisals need to be based upon
valid performance criteria/measures, raters of
competence that allow them to deal with the
2009
complexity of foreign performance appraisal,

provide for an appraisal process geared to
address a wide variety of external environments, identify who should be the rater for
each category of expatriate manager, and determine when the appraisals should be done and
how to evaluate the performance appraisal
process over time. Expatriate performance
evaluation is a difficult measurement process
to develop owing to the subjectivity and the
diversity of environments, both external as
well as internal. Therefore, expatriate performance appraisal is an inexact science and one
that does not appear to have been improved in
decades. Most published research on performance appraisal indicates that rarely have
companies been able to design and implement
a credible multinational performance appraisal
system (Black et al. 1992).
Expatriate performance appraisals should be
a systematic assessment of both the expatriate
manager and the organization in the foreign
environment. The issue of how to measure
expatriate performance/outcomes is vital in the
HRM function if the linkage of job satisfaction, worker performance and organizational
outcome is to be maintained. The critical goal
is to obtain accurate measures for both the individual and the company. Expatriate managers
in foreign environment settings are frequently
in need of a remedial action program (RAP)
because of the significant adjustments required
to be effective in an international context.
A RAP can be developed using the following
procedures:
(1) Clear feedback to the international
manager about why the domestic and
international superior feels the performer
has performance problems.
(2) Frequent use of behavioral critical incidents relative to the managers behavior
in an international context to point out
examples of both poor and acceptable
performance.
(3) A highly specified, imposed program for
corrective action, with performance measures and time perspectives consistent
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Expatriate mangers
with the international environment clearly
and formally established.
(4) Quarterly review sessions, or more frequent ones if performance is continuing to
deteriorate, with the focus of these sessions on the superiors communicating
to the employee how the superior feels
the employee is doing in relation to the
program established for corrective action.
(5) Extension of the review process to longer
time intervals of performance specifications and measurement if performance
improves. If improvement continues over
a sustained period, then focus attention
on other activities that need improvement.
(6) If performance does not improve or
even decreases, establishment of a
highly specified sequence of events in
terms of activities, measurements and
short-term perspectives, with the explicit
conclusion being termination if no
performance improvements are shown.
This step frequently results in voluntary
self-termination. A key element is the
expatriate managers understanding that
the individual has moved into this phase;
therefore, explicit communication to this
effect is crucial.
Problems in performance appraisal of expatriate managers. Why should there be a unique
performance appraisal process for managers
during an overseas assignment? A fundamental
rule of performance appraisal is to maintain
consistency between the mangers being
evaluated (Ilgen et al. 1993). Without significant modification to a domestic performance
appraisal system, an equally important rule of
evaluation, fairness for the ratee cannot be
achieved. A variety of circumstances necessitate a separate and unique internationally
articulated performance evaluation process for
expatriate managers during their overseas
assignments. The justification for developing a
separate international performance appraisal
process is:
(1) There may be significantly more diverse
employees to be managed. Expatriate
284
managers assigned to overseas positions

may be home-country expatriates but
also may be host-country or third-country
nationals. There may be significant differences in their initial employment
contracts, compensation and benefits
packages, career paths and opportunities,
and performance expectations (Harvey
1993a; Schuler et al. 1991). The administration of a diversified workforce may
require performance appraisal policies
and procedures customized to the
composition of those being evaluated
(Hoecklin 1995). The instruments of
assessment may also need to be modified
to measure subjective information in a
cultural context accurately (Harris and
Moran 1991). The values, norms, attitudes, beliefs and myths of performance
appraisal may be strongly influenced by
the culture of the individual being evaluated and even the diversity of the raters;
therefore, the rating process must take
these differences into account during the
foreign performance appraisal (Elashmawi and Harris 1993). At the same
time, the expatriate manager performance review should go beyond collecting annual compensation data by
encouraging managers to develop professional capabilities during an international assignment, motivate them during
the assignment, and help to ensure their
development in becoming successful
international managers (Fairlamb 1995).
(2) Multiplicity of external environments.
One basic consideration when developing
a process of appraisal for expatriate managers that influences performance beyond
the control of managers is the prevailing
characteristics of the external environment in which the expatriate manager is
to manage. There may be a wide array
of events taking place in the external
environment beyond the control of the
manager that can impede or benefit this
person. The level of economic development, the rate of change in key economic
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September
variables (inflation, unemployment and
interest rates), the governments involvement in the economic process and legal
constraints can have a direct impact on
individual expatriate managers performance. The level of variation and the
resulting impact of these exogenous variables which differ from those found in the
domestic environment may have a formidable effect on appraising expatriate managers performance during their overseas
assignments.
There may be external environmental
differences from the domestic market
(initially and over time), but it needs to
be determined whether these environments are more or less equal across
regions or whether there are significant
differences. Without a performance
appraisal process that addresses these
issues, the likelihood of a consistent and
fair expatriate manager appraisal system
is unlikely (Javiden and Dastmalchian
1993).
(3) Limited understanding of the differences
in the international marketplace. If raters
are not familiar with or have no international experience in the unique aspects
of expatriate assignments, they may not
provide equitable performance evaluations. When domestic human resource
managers are directly involved in the
performance appraisal of managers in
international assignments, the evaluation
instruments and process must be modified, or new measures developed to
highlight differences in domestic and
international performance processes.
Frequently, the domestic orientation of
human resource managers accentuates
the performance evaluation difficulties for
international managers (Javiden and Dastmalchian 1993). Separation of domestic
and international performance appraisals highlights the differences and can
improve the chance of fair overall evaluation of managers assigned overseas
(Mendenhall and Oddou 1991).
2009
(4) Consequential differences between organizational structure, strategy and culture.

There can be significant inconsistencies
between domestic headquarters and
international subsidiaries in a variety of
important issues which could influence
the performance ratings of expatriate
managers. The degree of the inconsistency
may be attributed to different goals and
strategies between the domestic and international organizations (e.g. different ownership patterns, different strategic plans,
etc.). The degree of centralization of
decision-making in the domestic organization may highlight the level of difference in authority and autonomy for
expatriate managers during overseas
assignments. In addition, the cultural fit
between headquarters and the international subsidiary may be quite different,
thereby directly affecting the performance
appraisal process (Milliman et al. 1991).
(5) Non-comparable or missing data. The
comparison of managers performance
must be based on comparable data and
standards. The variance of data between
international subsidiaries and domestic
headquarters can be significant and may
not allow for manager to manger assessments. Frequently, data are not comparable, so standardized performance
evaluations do not accurately appraise
expatriate managers. Developing rating
accuracy within the context of performance appraisals has been a major
impediment to identifying and developing
appropriate criteria for accuracy (Latham
and Wexley 1981). Good overseas performance appraisals should be based on reliable data and should be valid, practical and
accepted by the raters (Latta 1992). These
discrepancies are particularly evident in
international settings owing to the lack
of known performance standards across
economies when compared with the
domestic headquarters. Exogenous factors
in the external environment and errors of
exclusion as well as inclusion reduce the
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285
Expatriate mangers
universality of expatriate performance
appraisals (Smither et al. 1989). A survey
of expatriate managers supports the
problems associated with equitable performance appraisals: of those surveyed, 77%
were dissatisfied with their salaries, benefits and performance appraisals (Black
1991).
(6) Time, cost and distance issues. The
amount of time and the costs associated
with equitable performance appraisals for
expatriate managers are extended beyond
those in a domestic context and therefore
require a modification to the performance
evaluation. Owing to the geographic
separation of rater and ratee in many
cases, the need to make allowances for
performance evaluations must be accommodated to the international environment
(Schuler et al. 1991). The performance
review process must be able to accommodate the various external and internal
environments and provide for consistency
across those environments. Additionally,
the time to adjust to an international
assignment must be reflected in the
frequency of international performance
appraisals.
(7) Need to use appraisal information for
developmental purposes. It has been
widely documented that the failure rate
of expatriate managers from the US is
higher compared with that of managers
from other countries (Dowling and Welch
2005). Expatriate failures have been
attributed to a multitude of reasons,
including lack of training, family issues,
dual careers and compensation programs.
Regardless of the reasons for the high
failure of expatriates, the performance
appraisal must provide data on how to
develop expatriate managers, thereby
reducing the probability of failure. The
use of the appraisal process to improve
managers performance and to develop
additional skills while on overseas
assignments provides future opportunities
for these managers. The appraisal system
286
should increase international managers

understanding of career opportunities and
how international assignments augment
their career.
Repatriation of Expatriate Managers
Success in repatriation of expatriate managers.

The concept of repatriation was conceptualized
in the early 1980s (Harvey 1982, 1989;
Kendall 1981). Since that time, a number of
models have been developed to depict the repatriation of expatriate managers as a process that
is initiated prior to the expatriation of the
manager; which continues during the overseas
assignment and culminates upon the return of
the expatriate/family to their home country
(Baruch and Altman 2002; Baruch et al. 2002;
Bonache 2005; Paik et al. 2002; Suutari 2003;
Vidal et al. 2007). Therefore, most of the successes associated with repatriation are associated with developing a well-articulated process
of repatriation before, during and after the
overseas assignment. Successes in developing
a process for repatriation can be divided into
three phases.
Phase I: Pre-expatriation planning. The
problems/issues upon return of the expatriate
manager to the domestic organization/country
are highly correlated to the country/countries
to which the expatriate managers are assigned
(Black and Gregersen 1991a; Black et al.
1993; Bonache 2005; Duoto 2002; Elenius
et al. 2003). Therefore, to manage the return
of the expatriate effectively, the nature of the
overseas assignment and the context (environment) have to be assessed. Next, the nature of
the foreign assignment (e.g. what are the
characteristics of the position and what is to
be accomplished during the overseas assignment) needs to be assessed to determine the
potential impact of the assignment on the
expatriate manager. The more culturally/
economically distant the foreign environment and the more complex/difficult the task
assignment, the greater the probability that
expatriate managers will experience problems
during their overseas assignments (Black and
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September
Mendenhall 1991b; Black et al. 1991, 1999a,b;
Caligiuri and Phillips 2003). This difficultly is
then carried over when expatriates return to
their home country, given the level of adjustment the expatriate/family had to make to
adapt successfully to the foreign environment
(Carmeli 2005; Daniels and Insch 1998; Harvey
1989). A means to assess the performance of the
expatriates performance overseas effectively
has to be developed and agreed upon by HRM
and the expatriate prior to the overseas assignment. The nature and level of problems the
expatriate manager may experience relative to
performance appraisal and compensation have
to be discussed prior to the assignment, and a
method for reconciling potential problems also
has to be agreed upon. Both of these issues
(dissimilarity of environments and type of
assignment) should be previewed to give the
expatriate manager a realistic job preview
which establishes expectation for the overseas
assignment (Larson 2006; Lee and Liu 2006a,b;
Linehan and Scullion 2002; Johnston 2007;
Paik et al. 2002).
The expatriate manager and, in particular,
the family must be made aware of the types of
problems they may face upon returning to the
domestic market (see below, Problems with
repatriation). This heads-up will provide the
executive/family with an awareness of the
difficulty of transitioning back into the home
country/organization. This ex ante advance
warning will provide a foundation for a
goodwill effort on the part of the MNC to
make the executive and family aware of
problems and will show that the MNC is aware
of the potential problems upon repatriation
(Selmer 2006a; Stroh et al. 2000; Suutari and
Valimaa 2002). This awareness should provide
the foundation for enabling the expatriate
manager and family to undertake training prior
to leaving for the foreign assignment. Some of
the training modules should be on the problems/pressure/stress of repatriating when the
assignment is completed. Repatriation needs
to be elevated in the expatriates awareness so
that, during the assignment, they can start
preparations for returning to their home
2009
country. Often, the problems associated with

repatriation are not well delineated, and therefore are not addressed by the expatriate during
the overseas assignment (Harvey 1982, 1996;
Kendall 1981).
Phase II: Expatriation phase. Once the
expatriate manager is relocated overseas, training needs to be started for the eventual return
of the expatriate/family. While this may seem
a contradiction, a well-articulated repatriation
program includes a number of things that
needs to be taking place during the expatriate
assignment. First, a formal communications
link must be established with the expatriate
(Selmer 2006a). This link can provide updates
on what is happening in the organization
during the expatriates absence while, at the
same time, repatriation tips can be provided
to the expatriate and his/her family so that they
can develop a personal re-entry strategy.
An important step that should be taken is to
have repatriation discussions with expatriates
during formal performance appraisals. Expatriates should not be allowed to put off thinking/
planning for the repatriation phase of their
assignment. Given that there is a formal review
of expatriates on at least an annual basis, the
discussion of the steps in repatriation would
seem to be a natural way to maintain top-ofmind awareness of the intricacy of repatriation
(Harvey 1989; Hyder and Lovblad 2007;
Jassawalla et al. 2004a; Kendall 1981). There
may/could be some initial resistance on the
part of the performance appraisal rater to
advance thoughts about returning home but,
without ongoing discussion of repatriation, the
probability of having an effective transition
back into the home organization/home country
will be diminished.
At least a year before expatriates are to be
repatriated, detailed discussion of positions
that will be open upon their arrival should
take place. One of the primary concerns of
expatriates is what their assignment will be
once they have returned to the home country.
While in most cases it is difficult to have an
exact position picked out, the discussion
should be around possible types/levels of
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Expatriate mangers
position that would be appropriate (Bonache
2005; Caligiuri and Lazarova 2001; Harvey
and Novicevic 2006).
Phase III: Repatriation phase. The actual
return of the expatriate/family should be well
articulated, given the preparation during the
first two phases of the expatriate program.
Time is frequently the basic issue for returning
expatriate managers. They frequently need
additional time consideration to make the
transition to the home organization and culture
as seamless as possible. Time will be needed
for the physical transition as well as the psychological return to the complexities of the
home country and organization. The more
forced expatriates are, the greater the level of
stress they will experience. This stress will be
carried over to the managers personal life and
will compound the stress on the professional
side of the repatriation process (Takeuchi et al.
2002; Wang and Sangalang 2005). This stress
will necessitate additional resources (time)
being allocated to assist the family/spouse of
the repatriated manager (Wang and Sangalang
2005).
The career path of the repatriated manager
should be a central focus of the repatriation
process. All too often, expatriate managers are
put into a holding pattern upon return because
the preparation for the return into the organization has not been done or timing is an issue
relative to the new position (Harvey 1989).
But, if an appropriate amount of time and
preparation is given to the repatriate, the negative effects of the delay can be diminished
(Harvey 1982).
Problems in repatriation of expatriate managers. A number of problems have been observed
when repatriating expatriate managers to their
home country after the completion of their
overseas assignment. One issue has been the
number of expatriates who do not successfully
complete their terms on the foreign assignment.
There has been a debate in the academic
literature over the last decade (see Harzing
2001; Harzing and Christensen 2004) as to the
size of the failure rate. Almost regardless of
288
the level of failure, it would be hard to argue

with any degree of certainty that expatriate
managers have a difficult time adjusting when
expatriating and again when they (and their
families) are repatriated. The problems that
appear to be most troublesome upon repatriation are as follows.
(1) Financial issues. There are a number of
money-related issues that can create
problems for expatriates upon arriving in
their home country. First, there is a withdrawal of allowances that are a common
foundation of the expatriate managers
oversea compensation package. It is not
uncommon for expatriate managers to
receive housing, travel, educational,
transportation, hazardous duty pay,
support personnel for the spouse (household assistance) as well as assistance
for the expatriate (drivers, personal aids,
etc.). All too often, the expatriate loses all
these allowances simultaneously, placing
a financial burden on the family. These
financial pressures are heightened owing
to the other contemporaneous pressures
and the need to make large financial commitments (e.g. house, car(s), education,
etc.) upon arriving in the home country
(Baruch and Altman 2002; Baruch et al.
2002; Harvey 1989; Tran and Wong
2006).
(2) Family issues. The return is as taxing on
the spouse/family unit as it is on the
expatriate manager. The first problem area
focuses on getting the children integrated
back into the educational as well as the
social context of the home country. If the
overseas assignment for the expatriate was
more than five years, schooling issues are
among the first that need to be addressed
(Harvey and Novicevic 2006; Napier and
Peterson 1991). This problem frequently
places pressure on housing decisions, in
that choice of district is frequently tied to
which schools are available to the children.
One problem that is of growing concern
to repatriated families is assisting trailing
2009 The Authors

September
spouses with their careers. Trailing spouses
will often need to restart their career cycle
upon returning to their home country.
Again, if the overseas sojourn has been for
more than five years, reinvigorating the
trailing spouses career can provide a significant challenge to the family as well as
to the MNC. Both psychological pressures
as well as potential financial exigencies
make the job/career search a critical issue
for trailing spouses upon repatriation.
(3) Individual expatriate manager issues. The
pressures on expatriates can come from
outside the job (as discussed above), but
there can be a number of issues on the job
that create problems for them. The most
common job-related issue is the re-entry
position of the expatriate. It is not atypical
for returning expatriates be put into a
holding pattern relative to the new position upon return to the domestic organization. Out of sight out of mind is a
common problem, so that expatriate managers find themselves without an appropriate position on return. Finding a
position that is a reasonable career step for
expatriates may take up to six months,
leaving them questioning the wisdom of
the expatriate assignment.
At the same time, cohorts of expatriates appear to be ahead of them, because
they have been around when positions
came open in the organization. This
inconsistency in the career paths of expatriate managers and their domestic counterparts can create problems that are hard
to overcome (i.e. psychologically as well
as professionally) and create undue stress
in the repatriated expatriate manager. One
of the most dangerous issues is that other
managers observe the lack of a smooth
repatriation, which may cause them to
re-think their own expatriation assignments. With the present difficulty in
getting managers to relocate overseas
(see Larson 2006; Lee and Liu 2006a,b;
Stroh 1995, 1999), having repatriates
wandering around looking for a position
2009
could have a lasting impact on potential

expatriate managers.
(4) Organizational issues. The issues that
domestic organizations face during repatriation start when they are preparing to
withdraw successful expatriate manager
from their assignment overseas. All too
often, expatriate managers are asked to
remain in the foreign country longer
owing to the difficulty of finding replacements. The lack of succession planning
and the limited pool of prepared expatriate candidates necessitate taking additional time in repatriating managers. This
delay comes at a cost to both expatriates
(and their families) and the organization.
The motivation of expatriate managers is
lower, given their focus on returning to the
home country and, at the same time, the
organization is reluctant to make investments in the overseas position, given the
anticipated turnover of managers (Harvey
1989; Lee and Liu 2006a,b). The lame
duck manager cannot make commitments
or start new projects that have a long time
horizon. This state of limbo reduces the
attention to the consumer and the competitive nature of the marketplace.
Costs also escalate during the period
when repatriate managers (and their families) return and at the same time the initial
set-up of the new expatriate manager is
being paid for. The increase in cost can
very easily correspond to a drop in output/
sales as a result of repatriate managers
looking toward the move home and the
adjustment of the next expatriated manager (Holopainen and Bjrkman 2005;
Hyder and Lovblad 2007; Jassawalla et al.
2004a; Miroshnik 2002). The time to bring
about the change in management can be
longer than anticipated and increase the
expenditure of the organization, while at
the same time increasing the stress/
pressure on both the outgoing and incoming expatriate managers (and families).
(5) Future career issues. Future career concerns are at both an organizational and a
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Expatriate mangers
personal level for expatriate/repatriate
managers. The issue for the organization
is: how much time and money need to be
spent on returning expatriate managers to
their home country? There is a sentiment/
argument among some HRM professionals
that does not see the need to develop wellarticulated/funded repatriation processes.
This argument hinges on the precept that
expatriate managers are coming home,
and therefore they should not need as much
attention as expatriates leaving their home
country. When budgets are tight, one of the
first concerns is spending capital on repatriating managers (Caligiuri and Lazarova
2001; Duoto 2002; Harvey 1989; Paik
et al. 2002). But the counter-argument is
that, without a fully articulated repatriation
program, it will be difficult to integrate
repatriated managers into the organization.
But perhaps more importantly, managers
will learn that there are major issues upon
returning to the domestic organization
after an overseas assignment and will not
apply for overseas positions that open up
in the future.
At the individual manager level, the
lack of a well-articulated career path may
reduce the propensity of managers to participate in overseas programs. The number
of managers delaying/refusing to relocate
overseas would appear to be a major
concern for MNCs (Harvey and Novicevic
2001; Konopaske and Werner 2005;
Konopaske et al. 2005). Not going may be
based upon the lack of a well-articulated
repatriation program, considering that the
problems are visible to a larger number of
managers, given the size of the homecountry organization. While on assignment, there is less chance of problems
being widely known.
The Future of the Expatriate Manager
in Global Organizations
Until recently, the role of IHRM has dominated

the human resource agenda of MNCs. Despite
290
the progress made in this area, as organizations

are globalizing it is becoming increasingly
important to re-define the meaning of conducting business and, consequently, to focus on
developing globally prepared managers and
thus competent global management teams. In
the context of expatriates, this means that the
role of the international manager will have to
adapt such that it will fit current global market
demands. As Dowling and Welch (2005) have
pointed out, the viability of using expatriates
within a global organization is becoming
debatable with regard to their ability to manage
the escalating demands. While expatriates
still remain a viable means of exercising
control over foreign operations (Jaussaud and
Schaaper 2006; Tarique and Caligiuri 2004),
their responsibilities in a global context are
heightened and, consequently, may have a
greater impact on organizational performance.
In essence, the primary objective is to generate
a greater and more advanced set of skills in
managers that will allow them to control and
co-ordinate more effectively across borders.
The value of human resources within an
organization is indisputable when it comes to
developing a strategic global human resource
agenda advantage (Lepak and Snell 1999;
Wright et al. 1994). The global arena brings
with it a greater need for co-ordinating efforts
and thus will require expatriates to have a
deeper, more clear-cut understanding of what it
means to do business globally. What appears to
be a common denominator among academics
from a human resource perspective is the creation and continuous enhancement of a managers global mindset. Vital for the long-term
success of an organization operating in a
hypercompetitive business world, the desired
outcome of the accumulation skills relating to
a global mindset is the organizations strategic
development of unique capabilities (Snell et al.
1996; Taylor et al. 1996). These capabilities
may then serve as a stepping stone to creating
a strategic competitive advantage, a strategy
that is not easily imitated by others.
The effective development of a manager,
whether from an international (i.e. expatriate)
2009 The Authors

September
or global standpoint is a critical factor (Bartlett
and Ghoshal 1990) for organizational survival
in the broadest sense. As alluded to above, the
distinction between the two types of managers
lies in their behavior, competencies and characteristics. Pucik and Saba (1998) defined an
expatriate (i.e. international) manager as an
executive in a leadership position that involves international assignments and a global
manager as an executive who has a hands-on
understanding of international business, has an
ability to work cross-cultural, organizational,
and functional boundaries, and is able to
balance the simultaneous demands of shortterm profitability and growth (1998, 41). How
much this definition and the actual responsibilities of the expatriate manager change in the
future will be due in part to the evolving impact
of the globalization of business.
Note
1
Address for correspondence: Michael Harvey, Distinguished Chair of Global Business, University of
Mississippi & Professor of Management, Bond
University, Australia. Tel: +61 662 9155830;
Fax: +61 662 9155821; e-mail: mharvey@
bus.olemiss.edu
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Michael Harvey and Miriam Moeller are from

the University of Mississippi and Bond University, Australia.
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International Journal of Management Reviews (2009)

Michael Harvey1 and Miriam Moeller

Introduction to Globalization and HRM

In a recent study by Colakoglu and Caligiuri

performed by these managers, it is anticipated

2009 The Authors

International Journal of Management Reviews

The HRM process for expatriate managers

Successes in the identification of expatriate

psychological maturity and, in addition,

2009 The Authors

2009 The Authors

Bonache and Brewster 2001;

Dual career issues

Lack of language capabilities

Downes et al. 2002;

Aycan et al. 2000; Chen and Tzeng

Extensive foreign travel

Adapted from Harvey and Novicevic (2001).

Previous cultural adjustments

Big 5 personality characteristics

Table 1. Predicting success/failure of expatriate managers

Selmer 2006a,b; Wang and

Selmer 2000; Shay and Baack

Brewster and Suutari 2005;

Flexibility of IHRM system

Increased use of technology

Integrated IHRM system

The level of acceptable diversity may also

2009 The Authors

from other subsidiaries, and more are being

2009 The Authors

expatriation of one of the spouses, attempting

Successes in the compensation of expatriate

2009 The Authors

To date, no universal, global compensation

2009 The Authors

2009 The Authors

Successes in performance appraisal of expatriate managers. Deciphering the complex web

complexity of foreign performance appraisal,

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managers assigned to overseas positions

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(4) Consequential differences between organizational structure, strategy and culture.

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should increase international managers

Success in repatriation of expatriate managers.

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country. Often, the problems associated with

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the level of failure, it would be hard to argue

2009 The Authors

could have a lasting impact on potential

2009 The Authors

Until recently, the role of IHRM has dominated

the progress made in this area, as organizations

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Bartlett, C.A. (1981). Multinational structural change:

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expatriate host country. Mathematical and Computer Modelling, 1, 118.

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Harvey, M. and Novicevic, M. (2002b). Selecting

2009 The Authors