International Human Resource Management and Repatriation Process - Case Study Example

Repatriation Process Name Course Tutor Unit Code Date Introduction In the past few decades, the world has experienced heightened globalisation. During this period, organisations have prioritised setting up leaders capable of dealing with the ever-increasing involvedness of running their global operations. Overseeing global talent along with career paths is consequently a decisive challenge in lots of multinational organisations. Individuals as well as organisations perceive International assignments as a constructive way of developing global occupational competencies (Brewster & Suutari, 2005). However, repatriation is one aspect of international assignments that has been somehow overlooked. Most literature on international human resource management (IHRM) for the most part focuses on expatriate settlement in the host country of assignment. Not as much of the required concentration has been focused on preparing expatriates for homecoming, notwithstanding the facts regarding the complexity of settling back at home and reports that nearly all expatriates are unhappy with the repatriation process. In view of the fact that the world is becoming more integrated leading to more global deployment of employees, the repatriation process calls for added attention (Furuya et al 2007). This paper delves into the repatriation process. It critically evaluates the issues and processes involved in repatriation together with the relevant aspects of the expatriation life cycle. First, I define international human resource management (IHRM). International Human Resource Management International human resource management (IHRM) refers to “an extension of human resource that relates to having people working in a foreign country.” Peltonen (2006) defines international human resource management (IHRM) as a branch of management studies that explores the plan and effects of organisational human resource practices in a cross-cultural perspective. Also it is the ‘process of procuring, allocating and effectively utilising human resources in an international business.’ Figure 1: International Human Resource Management Model Source: Dowling et al (2008) Expatriation Process An expatriate is a member of staff who is working for the short term for an organisation while living in a different country. There are seven stages in the expatriate life cycle. Each stage has different opportunities as well as challenges. Figure 2: Expatriate Assignment Life Cycle Failure of an expatriate in an international assignment possibly will lead to them being sent back home prematurely. Failure could be caused by; lack of the ability for the expatriate to adjust to the host country culture which leads to culture shock; individual and disturbing problems; intricacy of the environment; lack of capacity to muddle through with big international responsibilities; along with other relations. The expatriate could as well return home following a successful completion of their international assignment (Shelton, 2008). Working on an international assignment is quite different from working at home. Therefore, managers ought to carefully choose employees they intend to send on an international assignment. Before leaving, the employee should be taken through a period of extensive pre-assignment training, where cultural training should be emphasised to make sure that the employees are familiarised with the existing cultural differences, and thereby lessen the odds of culture shock. Moreover, the expatriate should be trained on language skills since they play an important part in understanding culture in the host country (Bonache & Brewster, 2001). Repatriation Process Once expatriates complete their international assignment successfully or otherwise, they need to go back home; the process of repatriation kicks off. Repatriation, therefore, is the action of bringing the expatriate back to their domicile country. However, this process has more often than not been neglected in research and in career development (Lazarova & Caligiuri, 2001). Most studies pay attention on expatriate settlement in the host country while less attention goes to the process of preparing them to return home. Considering the fact that organisations invest heavily on their expatriates (usually two to three times more on employees working in the parent country), there is need to study the repatriation process cautiously (Black & Gregersen, 1999). Figure 4: Repatriation Process Black & Gregersen (1999) report of evidence regarding the involvedness of repatriation adjustment and that nearly all repatriated employees do not feel contented with the process of repatriation. Adler (1981) notes that the returnees are experience reverse culture shock which is even harsher than that of the host country. Just after their arrival back at home they are in high spirits and all seems perfect. However, after that they experience incredibly low mood as soon as they realise that things have changed, and it is no longer as it used to be. They later start to feel “average”. Therefore adjusting to the home country and starting to be in touch again with their family members, friends and colleagues becomes a challenge (Expatica.com, 2009). According to Stroh et al. (1998), nearly all expatriates and managers take it for granted that settling again into an individual’s culture is always unproblematic. In actual reality, the reverse is true. For a lot of expatriates, adjusting to the home country is easier said than done than adjusting to life in a foreign country. The thorny repatriation process of settling in the home country is influenced by diverse factors such as the returnees’ prospect as well as the organisation’s discernment regarding the international assignment. Figure 4 above indicates the repatriation process, out of the four phases described, the last (readjustment) phase has received less attention, and hence, it is usually handled scantily. Repatriate readjustment entails the manner in which the repatriate copes with reverse culture shock and job-related difficulties. The readjustment process is a compound interaction of numerous factors. The factors have been classified into three categories; (1) Psychological factors; (2) Work-related factors; and (3) Social/Behavioural factors (Bonache & Brewster, 2001). Psychological factors refer to the psychological preparedness of the repatriate. The re-entry into the home country is perceived in terms of the feelings, emotions and cerebral responses of the repatriate. These factors arise from the expectations expatriates form regarding the international assignment (Shelton, 2008). Expatriates form expectations long prior to returning home, in the course of their international assignments also at times even ahead of them leaving for the international assignment. Some of these expectations are assigned a psychological contract. Therefore, if they are not met, the expatriate experiences psychological penalty of re-entry. Black & Gregersen (1999) find out that close to 70 per cent of the repatriates experience noteworthy discomforts linked to their repatriation. Moreover, there is a possibility that the trouble experienced upon returning home can be extra psychologically difficult than those experienced during expatriation. As regards their work, repatriates may return home just to find that during their stay abroad, some of their home colleagues may not be there either due to death, retirement or being fired. This will contribute to their psychological disturbance more so if they had a close connection. The repatriates may also experience boredom and loss of status or authority (MacDonald & Arthur, 2005). Lastly, while on an international assignment, the society from which the expatriate comes from is bound to change. There could be changes in their families, schooling changes, and hospital changes, among other social changes. As regards behaviour, expatriates possibly will forget or do away with some of the behaviours they learned at home and adopt them with behaviours in the host-country. Consequently, the repatriates have got to learn again the behaviours they ignored for the duration of their international assignment. Behavioural control for a lot of repatriates may therefore be a challenge (Szkudlarek, 2010). Given the above factors, several writers have been advanced to explain the interaction of company actions with employee expectations, cultural transitions, and level of commitment to the home organization so as to enhance the repatriation adjustment. These are: the expectation theory, the re-entry systems theory, the equity theory, as well as the W-curve theory (Shelton, 2008). Expectations Theory This theory explains the conflict involving individuals’ expectations of re-entry along with the certainty of the move. It outlines the manner in which pre-re-entry expectations control the process of re-adapting to the home-country. MacDonald & Arthur (2005) assert that expectations when met or surpassed, lead to an even readjustment. Also, Stroh et al., (1998) state that even as met expectations shore up the repatriates’ devotion and intent to remain in the home-country, exceeded expectations may possibly lead to much elevated commitment to the place of work. Therefore, the process of readjustment ought to be effected not just upon re-entry, but, generally, it must embrace cognitive anticipatory adjustment ahead of the return. This would facilitate building up a reasonable level of expectations. Re-entry Systems Theory Martin & Harrell (1996), state that this theory emphasises exchange of information and contact with the employees ahead of, during and later after the international assignment. Trough this, he repatriate becomes accustomed to adapting throughout the cycle of stress-adaptation-growth through communicating with others in the home environment. Through communication, the expatriate feels a close bonding with headquarters notwithstanding the physical disconnection (Expatica.com, 2009). Several organisations have adopted this theory. For example, Medtronic uses mentors to assist the repatriated employees to set career goals in their job upon returning to the headquarters. Contact is maintained through e-mail, telephone calls, and visits (Klaff, 2002). Also, Cendant connects its employees using "team huddles", which are groups of employees working on a particular client. The team may be virtual where a few members are located at the headquarters and some located elsewhere, but they constantly communicate. By doing this, the company keeps its international assignees in touch and supports a real multicultural international staff team (Poe, 2000). Equity Theory This theory is closely related with the expectation and re-entry systems theories. It concerns employee motivation and commitment to the organisation (Shelton, 2008). It comes in handy in describing the level of commitment that a repatriate should give to the organisation. If the employees perceive that the company is not treating them fairly in light of their international experience, they tend to feel less committed and are willing to leave the company to work for another. Company managers should heighten the perception of fairness by openly sharing information on how decisions are made and following consistent and unbiased procedures (Shelton, 2008). Moreover, aligning international assignments with employee career paths reduces the effect of the equity/inequity phenomenon. W-Curve Theory This theory expounds on the re-entry adjustment through explaining reverse culture shock. It emphasises the common process of initial euphoria, irritation and hostility with cultural differences, adjustment, and re-entry to the home country (Martin & Harrell, 1996). The W-curve arises from an interaction of two U-curves. The first U-curve occurs when the employee enters the foreign country for the international assignment. The second U-curve occurs upon return to the home country. Even though the pattern similar, reverse culture shock on return is higher seeing as the employee does not foresee company, community, and cultural changes while away. Adler (1981) asserts that the re-entry phase is to some extent more difficult than the adjustment phase owing to the employee expectations. Through repatriation training, repatriate turnover would reduce since through the training they will expect a transition period. Some organisations have tried to introduce such training. For instance, Unocal offers all expatriates plus their families a day long debriefing program focusing on common repatriation difficulties, using videos, upon returning home. Then the session turns to live discussions and suggestions on how to cope (Black & Gregersen, 1999). Conclusion In the present day organisations are expanding their operations to different countries of the world. They therefore need people to work there “expatriates”. Once the international assignment is completed, the expatriates have got to go back home, the process of repatriation begins. Even though most expatriates and managers presuppose that the repatriation process will be easy seeing as the employee is just returning home, research has substantiated that this is a tricky process. There is indication that it could be more difficult to adjust to the home environment as opposed to adjusting to life in a foreign nation. Therefore, repatriation process ought to be considered keenly (Baruch et al 2002). References Adler, N. J. (1981). Re-entry: Managing cross-cultural transitions. Group and Organisational Studies, 6(3): 341–356. Baruch, Y. Steele, D. J. & Quantrill, G. A. (2002). Management of expatriation and repatriation for novice global players. International Journal of Manpower, 23(7): 659–671. Black, J.S. and Gregersen, H.B. (1999). So You’re Coming Home, Global Business. San Diego, CA. Bonache, J. and Brewster, C. (2001). Knowledge transfer and the management of expatriation. Thunderbird International Business Review, 43(1): 145–168. Dickmann, M. Sparrow, P. and Brewster, C. (2008). International Human Resource Management. Taylor & Francis, Hoboken. Expatica.com, (2009). How to Repatriate Successfully. Expatica HR, September 14, 2009. Viewed 21 April, 2014, . 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