1. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan1 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Week 7

2. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan2 Repatriation  Repatriation may be defined as the activity of bringing an expatriate back to the home country  Repatriation is the final step in the expatriation process (recruitment & selection  predeparture training  foreign assignment  repatriation or reassignment)  Repatriation is important because with it are associated a number of severe challenges for the expatriate which may significantly determine his or her performance prior to the return to the home country, and which hinder the expatriate’s reintegration due to “readjustment problems” or “reverse culture shock (reentry shock)” after return

3. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan3 Phase-wise Perspective of Repatriation Preparation Physical Relocation Transition Readjustment Repatriation Process

4. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan4 Phases of the Repatriation Process (1)  Preparation – Provision of information to the expatriate to facilitate the return to the home country. Example: Checklist of the things to do in the host country prior to departure (closing accounts, payment of bills etc.)  Physical Relocation – Includes activities such as removing personal effects, breaking ties with colleagues and friends and traveling to the home country. Help to the expatriate and his or her family is usually provided by relocation consultants or firms. Comprehensive and personalized relocation assistance serves to reduce anxiety, stress, uncertainty and disruption experienced by the expatriate and his or her family

5. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan5 Phases of the Repatriation Process (2)  Transition – Phase in which the expatriate and his or her family readjust to their return to the home country. Some companies hire relocation consults to assist in this phase also. Typical activities include acquiring temporary accommodation, making arrangements for housing and schooling, performing necessary administrative tasks (e.g. renewing driver’s license, applying for medical insurance, opening bank accounts)  Readjustment – This phase involves coping with reverse culture shock and the expatriate’s career demands on the organization

6. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan6 Expatriate Problems With Repatriation (Career Anxiety)  The effect of an international assignment on an expatriate’s career path are major concerns for that individual. Usually, an international assignment is accepted because of its anticipated career benefits  Anxiety may arise if an expatriate feels that his or her career advancement opportunities are not commensurate with the sacrifices made by the expatriate and his or her family as a consequence of acceptance of the assignment  Anxiety over the reentry position in the organization may occur long before repatriation

7. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan7 Expatriate Problems With Repatriation (Possible Reasons for Career Anxiety)  Period of absence from the home country has caused loss of visibility, isolation and feeling of being forgotten for the expatriate, especially if he or she is based in a subsidiary unit with lots or independence and comparatively little contact with the organization’s headquarters  Worry over inadequate planning by the organization and that the expatriate will be given a mediocre or makeshift job  Worry about restructuring and/or downsizing measures underway in an organization  Lack of a guaranteed job upon return to the parent organization Worry that the position given or return corresponds to a “demotion”

8. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan8 Expatriate Problems With Repatriation (Career Anxiety)  The declining tendency of organizations to offer job guarantees to expatriates after their return from a foreign assignment may have adverse consequences in terms of:  Staff Availability  Perception of Foreign Assignments (High-Risk Career Strategy)  Heightened Career Anxiety  Commitment to the Organization and Productivity while on the Foreign Assignment

9. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan9 Expatriate Problems With Repatriation (Devaluation of the Intern. Experience)  Expatriates are often confronted with being offered reentry positions that appear unconnected with their international experience  Sometimes returning expatriates are offered positions that are less challenging and with reduced responsibility and status than they had prior to going on their foreign assignment (negative career progression), causing both a demotivation (on the returning expatriate) and deterrence (on potential expatriates) effect  Devaluation of international experience and repatriate turnover tend to be positively correlated

10. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan10 Expatriate Problems With Repatriation (Loss of Status and Pay (1))  International assignments often are associated with considerable status and prestige for an expatriate, for e.g. in terms of autonomy, more responsibility and a prominent role in the local community (kingpin)  Returning to the parent organization usually results in the loss of autonomy and status Over there, you are the big fish in a small pond. Back home, you return to being the small fish in a big pond!

11. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan11 Expatriate Problems With Repatriation (Loss of Status and Pay (2))  International assignments often bring with them several compensatory benefits (expatriate premiums) and additional savings, which have to be forgone when an expatriate returns to the home country  After returning from an international assignment, an expatriate may no longer be able to purchase a home similar to the one he or she may have sold prior to going on the international assignment. Also, the standard of housing in the foreign assignment location may have been better than on return to the home country

12. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan12 Expatriate Problems With Repatriation (Social Considerations (1))  If an expatriate served in a foreign assignment in a high- profile position where he or she enjoyed considerable and sustained interaction with the social, economic and political elites of the host country, a feeling of disappointment may emerge after return to the home country. This feeling may be excacerbated by the loss of the expatriate compensation premium and other benefits  In addition to the expatriate’s social readjustment problems, the social readjustment problems of his or her accompanying family members must also be taken into consideration as well

13. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan13 Expatriate Problems With Repatriation (Social Considerations (2))  Reestablishment of social networks in the home country may be difficult if, for e.g., the expatriate and family are repatriated to another locality in the home country. It may be that friends have moved away while the expatriate was on assignment and that other friends may have joined the workforce and have no time for social activities  Children may encounter social readjustment problems in school because they are not update on latest trends, and may have problems adjusting to their home country educational system

14. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan14 Expatriate Problems With Repatriation (Effect on Partner’s Career)  Partners of expatriates may encounter problems in the home country when they seek to enter or reenter the workforce. Consequently, their self-esteem may decline, hindering their readjustment, particularly if they were employed prior to moving with the expatriate to the foreign assignment location  Given the increase in the number of dual-career couples, the career problems of the expatriate’s spouse need to be taken more into consideration

15. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan15 Expatriate Problems With Repatriation (Case Study) International Human Resource Management Managing People in a Multinational Context Peter J. Dowling, Denice E. Welch, Randall S. Schuler 3 rd. Edition Pages 219 - 220

16. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan16 Expatriate Problems With Repatriation (Organizational Responses (1))  Recent research indicates that the majority of organizations have no formal repatriation programme to help expatriates readjust on return to the home country  Only a small proportion of the repatriation programmes have consideration for the spouse  Typical reasons given by organizations for not having a repatriation programme include:  Lack of the requisite expertise  Programme cost  Lack of a perceived need by top management

17. 2 June 2015IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan17 Expatriate Problems With Repatriation (Organizational Responses (2))  Some organizations provide a form of repatriation assistance in the form of a “mentor”  The mentor is usually a superior to the expatriate and provides assistance in the form of information, by maintaining regular contact with the expatriate, and by taking the expatriates interests regarding promotion and job placement on return etc. into account  Research indicates that the likelihood of an organization using mentors depends on the size of the expatriate workforce, the organizational unit responsible for handling expatriates and the nationality of the organization