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

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

T
• I

Ihis article presents a working definition of

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

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

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HUMAN RESOURCE PLANNING

1997). This set of attitudes have introduced HR practices that would help is often described as global mindset. but probably only few ences in behaviors. researchers have analyzed the business. expatriates are global managers. 1993. In this review. 1985. What does wake me up is worrying about whether or not we have the leadership capability and the talent to implement the new and more complex global strategies. the same time. Gates. In an effort to clarify the difglobal operations Bartlett & Ghoshal. most of the work has been focused Ghoshai. Meeting this chalon the issue of selecting managers lenge requires changes in cognitive for international assignments resultprocesses through which managers frame ing in lists of criteria. 1992). have explores the definitions of the two challenge for most been expatriates at some point in concepts. knowledge. and retain compeThe emphasis on the mindset helps to tent expatriate managers (Tung. ferences between the expatriate and Some global managers may be the global manager. Bartlett & Ghoshal. in management developBuilding and perceives global competition as an ment literature. there seems to be a sustaining opportunity. and explains the differtheir career. teristics that the international manager should 1998). who has a flexible and open effective development of global managers and mind.s that challenge requires fies and compares the human although a great number of studies resource practices necessary for an deal wilh the international or the changes in cognieffective development of the expatriexpatriate manager. globalizing firms. The term "expatriate (or intemational) manager" defines an executive who is able to assume a leadership position fulfilling international assignments across countries and cultures. Dulfer.xt. and characteristics of the two types Meeting this of managers. and characbusiness problems (Murtha. there seem to tive processes ate and global managers. globalizing finns (Nohria & business problems. be fewer studies (most of them conBuilding and sustaining organizaceptual. and business boundused to measure such personal qualifications.the location of the assignment whereas the global manager is defined by his or her frame of mind. CEO. who However. 1994). this article is a critical expatriates: many. 1991. with a well-rounded understanding of executives (Pucik. Lenway & Bagozzi. the terms expatriate manager and "international manager" are used as equivalents. and experience sonality and psychometric tests that could be across national." -Dave Whitman. 1991: Arthur & expatriate/international manager is linked to Bennett. differentiate between expatriate (intemational) Mendenhall & Oddou. not empirical) about global through which tional capabilities for global operamanagers. 1992. as well as on the identification of persharing infonnation. 1981. if not most. "The thing that wakes me up in the middle of the night is not what might happen to the economy or what our competitors might do ne. and functional priorities that emerge causes of failure in overseas assignments and in the globalization process. 1985. Within the abundant managers frame tions is a critical challenge for most research on expatriate managers. 1990: Oddou. Global thinking places high value on possess. 1990: and global managers. At aries and on balancing competing country. Lioss-functional boundaries. The definition of an Ronen. as these terms are interchangeable in most of the Defining the Expatriate vs. literature. 1989: Evans. 1989. agers. Tichy & ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ international business and an ability to work across cross-cultural and Sherman. and who is able to balgreat deal of confusion about the organizational ance the simultaneous demands of meaning of various terms defining global integration and national expatriate/intemational/global mancapabilities for responsiveness (Pucik. The term "global manager" (or the Global Manager "transnational manager" as it is sometimes called in the literature) usually refers to an execIt is widely agreed thai the critical factor for utive assigned to a position with a cross-border companies to succeed in global competition is responsibility. 1995). Whirlpool Corporation HUMAN RESOURCE PLANNING 41 . functional. competencies. competencies. organizations select. The article also identiA literature review' show. develop.

They should be able lo perform tasks as members of a team. and those who go abroad as "high-potentials" to broaden their development before inoving up to senior management. the determinants of the successful global manager. and the effective HR practices to develop the global manager ate still mainly at a conceptual stage (Kupfer. reflect on complex problems in an appropriate way. 1992. 1992) Skills Multidimensional Perspective Proficiency in Line Management Prudent DecisionMaking SkilLs Resourcefulness Managerial Implications Core Skills Extensive multi-product.The 21st-century Expatriate Manager Profile (adapted from Howard. Similarly. impart confidence in their own ability to solve problems in difficult situations. and multi-environment experience Track record in successfully operating a strategic business unit(s) and/or a series of major overseas projects Competence and proven track record in making the right strategic decisions Skillful in getting himself or herself known and accepted in the host country's political hierarchy Adept in bringing a culturally diverse working group together to accomplish the major mission and objective of the organization Ability as a Team Builder Augmented Skills Computer Literacy Prudent Negotiating Skills Ability as a Change Agent Comfortable exchanging strategic infonnation electronically Proven track record in conducting successful strategic business negotiations in multicultural environment Proven track record in successfully initiating and implementing strategic organizational changes Quick to recognize and respond to strategic business opportunities and potential political and economic upheavals in the host country Proven track record in participative management style and ability to delegate Visionary Skills Effective Delegatory Skills In contrast. including those assigned to line management and specialized functional positions. In this context. Tichy. motivate all members of the organization to cooperate. multi-functional. Adler & Bartholomew. Werther. Evans. research on global managers is relatively scarce. Derr and Oddou (1991) identify two types of expatriates. Kets de Vries & Mead. Bartiett & Ghoshal. 1995). The technical troubleshooter is sent to analyze and solve a technical problem. 1988. The operational expatriate is the individual who carries out a well-defined position in an ongoing business. 1995. international managers must have clear managerial qualifications. A number of researchers focused on competencies of effective international tnanagers. Besides defining what the global manager's competencies and behavior should be and how they differ from that of the expatriate manager. studies revealing the global manager's profile. McCali (1992) has 42 HUMAN RESOURCE PLANNING . and most of all. those who are assigned abroad to "fix" a problem. Hays (1974) categorizes expatriate managers into four types. in addition to purely technical and professional skills and competencies. multi-company. Yeung & Ready. The structure reproducer is responsible for reproducing in the foreign subsidiary a structure similar to that of another part of the company. 1992. 1992. In one of the earliest articles on this subjecl. Pucik (1992) differentiates between "demanddriven" and ••learning-driven" international assignments. Wachtel & Veal. Pucik. and the chief executive officer oversees and directs the entire foreign operation. 1992. multi-indtistrj'. 1992. multi-country. BKHAVIORS AND COMPETENCIES Expatriates' Behaviors and Competencies. According to Dulfer (1990). 1992. improvise and find new solutions in the face of unexpected changes.

respect differences among people." Rothwell (1992) explored its three principal components: general knowledge about the world and global economy: national information ahout conditions in a specific country. and cross-market capacity to leverage learning on a worldwide basis (see Exhibit 2). International managers should show curiosity about how things work. global managers are individuals that have been selected for. have a sense of adventure. be biased toward action. Builder. Bartlett and Ghoshal refer to these sets of behaviors and competencies as the building of a global matrix in the mind of the global manager. those who can conceptualize complex geopolitical and cultural forces as they impact business.proposed (as an outcome of a research project aimed ul developing an assessment instrument to identify leadership potential in future international executives) that individuals who are hound to be successful in international assignments are those who show ability to Icarn from experience. the energy. the "international knowledge. Howard (1992) has summarized the skills required of the 21st-century expatriate manager (see Exhibit I). Global Managers' Behaviors and Competencies. Looking toward the future.e. 1992) Groups of Global Specialists Business Manager Skills and Competencies • Recognize opportunities and risks across national and functional boundaries • Coordinate activilies and link capabilities across those barriers • Capture full benefit of integrated worldwide operations Roles: Country Manager Strategist. and Coordinator • Meet local customers' needs • Satisfy the host govemment's requirements • Defend the company's markel position against local and external competitors Roles: Sensor. Rather. country managers. and Contributor Functional Manager • Build an organization that can use leaming to create and spread innovations • Scan for specialized infonnatiori leading-edge knowledge and best practices worldwide • Champion innovations that may offer transnational opportunities and applications Roles: Scunner. Cross-Pottinator. and leadership style. and possesses a well-honed set of global leadership skills and behaviors. and Champion HUMAN RESOURCE PLANNING 43 . national-level responsiveness and flexibility. and skills as global '"change agents. skills. accept responsibility for learning and change. process. and business understanding of strategy. Tichy (1992) refers to global managers/leaders as •'globalists. and CO opted into the broader transnational organization. Architect. seek and use feedback.. Their principal characteristic is the ability to resolve complex and potentially contradic- tory issues embedded in the global environment." Kets de Vries and Mead (1992) identify global leaders as individuals with the capacity of envisioning (indicating future direction in an increasingly complex The Three Groups of Global Specialists (adapted from Bartlett & Ghoshal. 1992). According to Bartlett and Ghoshal (1989. and talents to be global networkers. but they add that there is no such thing as a universal global manager. and have shown consistent growth over time. Focusing on one key competency expected of expatriate managers. there are three groups of global specialists — business managers. A number of recent contributions to the discussion of globalization of management focused on identification of key competencies of global managers with references to the traditional leadership literature. and functional managers — that should together lead the organization to achieve globalscale efficiency and integration. developed by. demonstrate readiness/hardiness about leaming." characterized as individuals who have a global mindset — i. such as an ability to build effective cross-cultural teams.

operating as cross-border coach and coordinator. to articulate 44 HUMAN RESOURCE PLANNING a tangible vision. are presented later in the section on the attributes of successful global managers. the capacity for "pattern recognition" {sorting out relevant from irrelevant infonnation). The first set of competencies is linked to the active roles that the global manager should play in order to manage across a number of countries and cultures simultaneously. 1995) defines the mindset as "a predisposition to see the world in a particular way that sets boundaries and provides explanations for why things are the way they are. able to scan the world from a broad perspective. professional. and approaches to conducting business • Works with and leam from people from many cultures simultaneously • Creates a culturally synergistic organizational environment • Adapts to living in many foreign cultures • Uses cross-cultural skills on a daily bask throughout his or her career • Interiu:ts with foreign colleagues as equals Local Responsiveness Synergistic Learning • Works with and coaches people in each foreign culture separately or sequentially • Integrates foreigners into the headquarters" national organizational culture IVansition and Adaptation Cross-cultural Interaction Collaboration • Adapts to living in a foreign culttire • Uses cross-cultural interaction skills primarily on foreign assignments • Interacts with colleagues from within clearly defined hierarchies of stmctural and cultural dominance and subordination • Expatriation or inpatriation primarily to get the job done Foreign Experience • Transpatriation for career and organization development environment). consist of championing international strategy. or organizational objectives. Yeung and Ready (1995) identify six leadership capabilities that corporations value in global managers. (The other set of global competencies. tastes. These capabilities are as follows: to be a catalyst/manager of strategic change. to be a catalyst/manager of cultural change. values. or what Barham refers to as the "being"' competencies. while at the same time establishing guidance for ways in which we should behave. as Barham calls them. Several studies concentrated on global managers" way of thinking. acting as intercultural mediator and change agent.'" In this respect. 1994). technologies. The "doing"' competencies. or manage strategy to action. broader picture. manage change. to exhibit a strong customer orientation. Is global mindset a tneasurable construct? Recently. or "global tnindset. Research conducted by the Ashridge Management Research Group led to differentiation within two sides of the global managers" competencies (Barham & Anial.Differences Between the Expatriate and the Global Manager (Adler & Bartholomew. and the ability to cope with stress. Lenway. value differences. trends. and Bagozzi (1998) discussed the application of a survey instrument designed to evaluate individual and organizational progress toward creating a global mindset opera!ionalized as an ability to balance the con- . and to get results. 1992) Expatriate Manager Global Perspective • Focuses on a single foreign country and on managing relationships between headquatlers and that country • Becomes an expert on one culture Transnational Manager • Understands worldwide business environment from a global perspective • Must leam about many foreign cultures' perspectives. in a recent study of managers in major global companies. Rhinesmith (1993. trust process over structure. Murtha. the ability to instill values and inspire others and build and maintain organizational networks. Rhinesmith defined the global manager as an executive with a global mindset. always looking for unexpected trends and opportunities to achieve his or her personal. individuals with a global mindset should be able to drive for the bigger."" In an 1993 article. to empower others to do their best. and managing personal effectiveness for international business. and seek lifelong leaming. and strategies.) Finally. balance paradoxes.

1996). Hogan & Goodson.tradictory pressures of global integration. 1990.LOBAL MANAGERS. the impact of policy variables on organizational and individual differences concerning globalization. Dunbar & Katcher 1990: Dulfer.stantiated by empirical evidence. The results showed that American managers' decision to relocate were definitely influenced by their spouse's feelings about intemational relocation and by their own attitude toward moving in general. Recently. 1990. They have created a scale to assess the degree lo which managers develop global mind. Tung. and most important. Some of these personality characteristics will be examined in more detail later while reviewing the literature on the attributes of successful expatriate managers. and (2) a completion of the overseas assignment does not mean that the expatriate failure has been avoided.stment. which may include a variety of individual as well as organizational factors. Scullion (1994). Black. from selection and and handling of the initial culture shock to repatriation (Howard. Harzing (1995) reviewed the literature on expatriate failure measured as a HUMAN RESOURCE PLANNING 45 . The focus of the study was to provide an intentional measure of that willingness. Findings by Dowling (1990). but more attention should be paid to the reasons behind the failure (defined as premature return. Scullion. lack of the right attitudes and skills to communicate with people from different cultures. She adds that measuring the failure rate as the percentage of expatriate managers retuming home before the expiration of their assignment contract is inadequate for two reasons: (1) it is far more damaging for a company if an expatriate who fails to perform adequately stays until the completion of the overseas assignment. and coordination. Harzing concludes that HR executives should continue to examine expatriate failure. Gregersen & Mendenhall. FACTORS ASSOCIATEU WITH KXPATRIATE AND (. the literature has focused on three additional individual-level issues: A) Willingness to Relocate. Dunbar & Oddou. and poor pertbrmance during intemational assignment). individual and organizational progress in becoming global and factors that account for variations in the speed ot globalization across and within organizations. 1992. and the inadaptability of the family to the new environment are frequently cited as reasons that cause an expatriate manager to retum prematurely from the intemational assignment (Mendenhall. the expatriate inability to manage and cope effectively can be caused by personal issues. the lack of cross-cultural adju. 1981: Black. 1990. 1992. Hogan & Goodson. Gregersen. Comparing the Two Sets of Behaviors and Competencies. 1994). and Weeks (1992) suggest that shortages of experienced and capable expatriate managers have become more acute over the past five years.sets. Personality attributes such as the inability to deal with stressful situations. we are not aware of any study that focuses on predictors of failure of global managers. whiie on the supply size. 1971. Misa & Fabricatore. Reviewing the behaviors and competencies required of expatriate and transnational managers. In recent research on intemation- Much of the normative literature on the expatriate process is based on the argument that the expatriate failure rate is high (Baker & Ivancevich. Aside from the personality attributes that may cause the failure of the expatriate assignments. 1979. Weeks. The differences in skill characteristics are seen as driven primarily by the degree of cultural and organizational complexity facing managers during iheir careers. INDIVIDUAL EACTORS First. In contrast.EAILURE premature reentry and concluded that this argument is not fully sub. 1992: Mendenhall. 1992). An interesting question that can be addressed using the global mindset scale is whether one can acquire a global mindset (to become a global manager) without ever leaving his or her home country as an expatriate. They are caused on the demand side by the everincreasing pace of internationalization. Gregersen & Mendenhall. The study of predictors of expatriate failure now has a long history in management literature. Feldman & Tompson. however. It was also influenced by the number of children at home and employer's policies (Harvey. 1992. 1987. the organizational capability to develop effective expatriate exeeutives is hindered by the inadequate management of the expatriation process. 1992. Brett and Stroh (1995) studied empirically the willingness of American managers to relocate intemationally. 1980. responsiveness. Adler and Bartholomew (1992) summarize the main differences between the two concepts (see Exhibit 3). 1995). Nevertheless.

DETERMINANTS OF EXPATRIATE AND GLOBAL MANAGERS' SUCCESS The research on determinants of expatriate success is also much more developed than research on global managers. 1992. 1994). 1981. 1988: Black & Mendenhall. 1989. Tung (1981) identified four groups of variables that contribute to expatriate success: technical competence on the job. those who "leave their heart at home". 1991). Derr & Oddou. "softer" factors. those who "go native": and those who become "dual citizens" — expatriates with high allegiance to both the parent and local affiliate. Gertsen. 2) the personality profiles and psychological attributes of successful international managers (Phalak. 1992). 1992. and Mendenhall (1992) add that the global assignment is destined to fail if it is based only on a superticial selection of candidates on the presumable technical and managerial competence to put "the foreign fire out. Tung (1981) adds that the importance of these selection criteria varies according to the category of tasks the international manager is expected to perform: chief executive officer. Dual-career couples are also more likely to turn down international assignments because of the expected negative effects of a career interruption (Stephens & Black. 1992). and preparation programs and support policies during and after the completion of the international assignment is regarded as a ver>' important reason in determining the failure of overseas appointments. 1991. 1992: Forster. Smith. Harrison. 1982: Pucik. Tung. 1990). 1981: Black & Stephens. developing a high dual allegiance seems to be the best way to prevent failure after an international assignment and has proven to have positive personal and organizational consequences. 1990. Black and Gregersen (1992) and Gregersen (1992) have explained expatriate failure by taking a closer look at the fonns of allegiance developed by the expatriate toward both the local operation and the parent company. troubleshooter. Companies should implement practices such as job search assistance and pooling available positions in a geographically based consortium of companies (Catalyst. 1981). Bennett. Dunbur & Katcher. 1990. In one of the earliest studies of the expatriation process. and the family situation. Mendenhail and Oddou (1985) identified four key dimensions in the expatriate adjustment The ineptitude of the organizations in providing effective expatriate selection. 1989.al mobility. 1981: Black & Mendenhall. 1992. Criticizing what they believe is "the most common American approach" to expatriate selection. Howard. The dominant theme of the literature reflects the opinion that expatriate selection and development is still mainly focused on technical competence as the key determinant of an expatriate manager's success. I99. Cope. They have identified four types of expatriate commitment: the "freer agents" with low level of commitment to both the parent and the local operation. C) Expatriate Commitment. 1991). 1974. training. 1990: Black. 1994). such as relational. but that stronger efforts should be deployed by organizations to assess other. Wederspahn & Stahl. The inability of the spouse to adjust to the new country was cited in many empirical studies as a reason for expatriate failure (Tung. the lack of career planning. 1990). and international operative. 3) the effect of language and cultural training on expatriates (Gertsen. 1992. the poor orientation programs. crosscultural. ORGANIZATIONAL FACTORS In the same vein. Hogan & Goodson. In their study. many authors have described the difficulty of managing dual-career marriages. Rothwell. personality traits or relational abilities: environmental variables. Scullion. 1990. 1987: Blocklyn. with an emphasis on expatriate selection and the expatriation process. 1990: Swaak. Forster (1992) focused on four key dimensions (related to job mobility) to explain Ihe attitudes toward accepting assignments abroad: 1) the performance of employees abroad and the causes of expatriate failures (Tung. 1989: Dowling.S). and interpersonal abilities as well as adaptability potential of the spouse and other family members (Tung. !t is clear [hat future research should include investigations of the effects of dual-earner families. Dunbar & Oddou. and 4) and the effects of national cultural differences on the outcomes of international assignments (Gould & Penley." Others argue that the typical selection process often fails to take into consideration the candidates" crosscultural ability or the family disposition to live abroad (Stone. the ineffective cross-cultural training. Black. 46 HUMAN RESOURCE PLANNING . and the unattractive compensation packages as common organizational factors that would imminently lead to overseas failure (Mendenhall. 1985. functional head. B) Family Issues. Gregersen.

family situation. and Ronen (1990). The HR practices are categorized into five major activities: staffing. a few indicators might be helpful to identify the potential expatriate. EFFECTIVE DEPLOYMENT OF EXPATRIATES We have reviewed the recent literature on HR management practices related to expatriate managers in order to identify examples of effective HR techniques that may support effective deployment of expatriate managers (see Exhibit 5). whether or not he or she has a supportive family. examples of companies that have implemented the practice (as cited in the literature) are included. leadership factors. adaptability factors. according to Wills and Barham (1992). training and career development. Most of the studies are descriptive. This dimension measures the expatriate's ability of adjustment. information on HR practices is mostly drawn Irom North American firms and European data. although a sophistication of the analysis continues to increase. his or her open-mindness. However. and their strong personal morality (Barham & Antal. self-confidence. motivational state. the HUMAN RESOURCE PLANNING 47 . In the area of staffing and selection. We have also noted the type of research methodology used in the article reviewed. performance appraisals and compensation. relational abilities. The candidate's capacity to adapt to change (new structures. family situation. The emotional energy is the ability to deal with stressful situations. and together can be grouped as professional and technical competence. and cultural awareness (see Exhibit 4). From a psychological perspective. and technical competence. With respect to global managers. The primary emphasis of the empirical studies is on the expatriation process. stre. expatriation process. Refiecting the nature of the field. The psychological maturity refers to three additional attributes of global managers: their strong curiosity that drives them to learn. The list of citations is meant to be illustrative. Developing International and Global Managers Not surprisingly. The cognitive complexity refers to the ability to see multiple dimensions in a situation.ss reduction. The culturaltoughness dimension refers to the understanding of differences between countries. data on nonWestern firms appear only infrequently. and language skills. Kets de Vries and Mead (1992) identified five principal categories of factors contributing lo the development of global leaders: management development. the majority of conceptual and empirical studies in this area have thus far focused mainly on HR practices related to expatriates. selection. Oddou (1991) states that there arc never any guarantees in identifying what constitutes the '"righr" person for the international assignment. and the candidate's capacity to deal with stress are essential elements that enhance a firm's chances of employing a successful expatriate. The perceptual dimension refers to the ability lo understand why foreigners behave the way they do. The othersoriented dimension measures the expatriate's ability to interact effectively with host-country nationals and consists of two sub-factors: relationship development and willingness to communicate. the scope of the literature is much more sparse. Mendenhall and Oddou (1985). core competencies of international managers may be described as cognitive complexity. The key challenge is the operationalization of the outcome variables that are seldom linked to objective measures of individual or organizational perfonnance. and training and education. Expatriate managers should be nonjudgmental and non-evaluative in interpreting the behavior ot host-country nationals. but whenever appropriate. Research on global managers is substantially less developed. 1994). new rules and new faces). A number of key themes emerge from our review. Ronen (1990) incorporates the dimensions of expatriate success identified by Tung (1981) and Mendenhall and Oddou (1985) and identifies five categories of attributes of success: job factors: relational dimensions. The self-oriented dimension is composed of three sub-factors: reinforeemenl subslilution. emotional energy. and repatriation. These five categories are broadly comparable to those identified by Tung (1981). and training: not much work has been done on performance management and compensation of globalization. and still basically in a conceptual stage. personal development. not exhaustive. their willingness to apply a great deal of psychological energy to unravel the complexity of a situation. and to identify the relationships between those different dimensions.because they believe that expatriate acculturation is a multidimensional process. sociability. and psychological maturity. leadership factors. HR MANAGEMENT PRACTICES SUPPORTINC.

From the management development perspective. international assignments are increasingly viewed as an intrinsic part of career progression.ssignments. Assessment for intemational assign- ment is becoming increasingly rigorous and often involves the candidate's spouse.s to communicate Relational Dimensions • Tolerance for ambiguity • Behavioral flexibility • Nonjudgmemalism • Cultural empathy and low elhnocentrism • Interpersonal skills Adaptability Factois • Narcissistic development • Cultural diversity in family • Early intemational experience • Bilingualism • Multiple roots Leadership Factors (3) Motivational State • Belief in the mission • Congruence with career path • Interest in overseas experience • Interest in the specific host-country culture • Willingness to acquire new patterns of behaviour and attitudes Leadership Factors • Self-confidence • Responsibility • Curiosity • Imagination • Hardiness • Decision-making skills • Envisioning • Communication skills • "Core values" • Career goals and expectations Personal Development • Supportive spouse • Adaptable spouse • "'Movable children" • Variety of interest Family Situation (4) Family Situation • Stability of marital relationship • Spouse's and family' adapiability Family Situation • Willingness of spouse to live abroad • Adaptive and supportive spouse • Stable marriage Cultural -Toughness Dimension refers to the understanding of differences between countries Language Skills • Host-country language • Non-verbal communication Cultural Awareness (5) Environmental Factors • Flexibility in other cultures Training and Education • Analytical skills • Professionai skills • Study in another culture • Study in international languages 48 HUMAN RESOURCE PLANNING . providing opportunities for both a transfer of Characteristics of the Successful Expatriate and Global Manager Expatriate Manager T\ing (1981) Professional and Technical Competence (1) Technical Competence on the Job • Experience in company • Technical knowledge of business • Previous overseas experience • Managerial talent • Overall experience and education Personality Traits and Relational Abilities • Communicative ability • Maturity and emotional stability • Respect for culture of host country • Adaptability and flexibility in new environment MCIKII'IIIKIII and Global Managerl Ronen (1990) Job Factors • Technical skills • Acquaintance with host-country and headquarters operations • Managerial skills • Administrative competence Odduu (l^HS) Self-Oriented Dimension • Technical competence Kets dt' \rits atid Mead [1991) Management Development • Early responsibility • Variety of tasks • Early intemational experietice • Corporate values Relational Abilities (2) • Reinforcement substitution • Stress reduction Perceptual Dimension • Nonjodgmentali^im • Nonevaiuative in interpreting the behavior of hostcountry nationals Others-Oriented Dimension (expatriate ability lo interact effectively with host-country nationals) • Relationship development • Willingnes. The structure of assignments is becoming more flexible. as well as on making sure that the international track attracts those with the best potential to succeed in the firm.thrust of HR activities in leading global firms — consistent with recommendations based on past research — is on enlarging the pool of potential candidates for intemational a.

International assignments start early and flexibility is the key. Staffing sheds its ethnocentric image. Pucik. Kets de Vries & Mead. intemational assignments are the essential development tool. There is a strong consensus in the literature about the need to invest in thorough training and orientation programs not only for the expatriate. may influence how expatriates perform. and global communication. open communication. However. Visible successful retums can also have a positive impact on willingness of others to accept an intemalional assignment. the quality of the support network inside the host country. but the allemative designs are still not yet well-articulated or tested. 1995). the area of expatriate performance management (e.g.g. but also for his or her family. the focus on global managers may require a qualitative leap in aligning HR with the requirements of globalization. there seems to be an implicit yearning fur a better model ot expatriate compensation (e. 1992. Emphasis is on the quality of the management process. 1992. and on emotional and logistical support during the transition. family wellbeing is seen as an increasingly important prerequisite of expatriate effectiveness. Global mindset and global leadership become an integral part of performance management criteria. an effective execution of intemationa! transfers will continue to demand attention. However. companies need both expatriate/international and global managers. they can take various forms linked to the developmental needs. An important component of effective expatriate management policies is geared toward the expatriation process. much more can be done to improve the odds of success.. as an executive who has a hands-on understand- HUMAN RESOURCE PLANNING 49 . Conclusions and Implications To be successful in global competition. 1995). 1994. While an intemational assignment cannot be a shelter against organizational upheavals. Reynolds.. the repatriation stage of the intemalional assignment is receiving growing attention in order to reduce the perceived high tumover of retuming executives. and creation of global competitive culture. as an executive in a leadership position that involves intemational assignments. 1992. we have categorized various normative statements and prescriptions regarding the impact of HR practices on development of global leaders into five areas: selection. In particular. career development and training. The global manager is defined. criteria. global managers can come from anywhere in the world. Leading global firms invest heavily In the training of their international managers. 1992. The best practices focus on advance planning in order to provide meaningful opportunities upon return that create value for the employee as well as for the company. However. We have defined the former. as all key HR activities are intimately linked to the effectiveness of the management development process. our objective was to capture those HR practices that can support effective development of global managers and are already in the process of being implemented at leading North American and European firms (Adler & Batholomew. In addition. as in the case of intemational managers. Yeung & Ready. this concem is not yet reflected in the academic literature. process. Finally. organizalional design.knowledge as well as leaming of new competencies by the international manager. A number of "'global'" HR practices stand out. Most of the discussion and recommendations are focused on the effectiveness of various financial incentives. perfonnance management and compensation. Tasks of global managers are structured to cross intra-organizational boundaries. Managing the cost of compensating expatriate managers often shows in surveys as an item of major concern for intemational HR executives (McKay. at relatively low cost. outcomes) is also substantially unexplored. In a number of articles. often through membership in transnational teams. Similarly. HR PRACTICES THAT SUPPORT DEVELOPMENT OF CLOBAL MANAGERS Based on the observations in the literature. Therefore. although they may happen much earlier in an executive career as "global leaming" becomes the primary objective. delivering the same or more positive outcomes — pertbnnance and retention — for less money). Tichy. in a narrow sense. as well as linkage with the home office. but it is targeted to help the expatriates continue learning about the host culture and improve their intemationa! skills during the assignment. before and throughout the duration of an assignment. After posting. In comparison with the earlier discussion of HR practices supporting development of intemational managers. in a broad sense. not only is training provided in the pre-departure stage.

8.:inuLl. W « k s .5. Mitsui & Co.ri.(": 10.. 2J. D C I T S Odiitiu. 18.\-i-Liili-n.6. Intel.22.3. " C ' S : C a s t Studs. I W J • CS** M I S M S i .iii. t W I • S — I t J J Elpali/l. Oddnu. rjunlrar i Kalcher.S U5H US HRMuniKetJi.. IW2 .il>niji| (References) (1.20. 1992-.8.i EviKit.22.fi l4. cultural and business orientation For high-potentials. ABB. Intel. Pudti. Arthur Andersen nL'liouse Electric.21. USA Whirlpool.irum pji-Viiyt (10. 19QS .24) KPMG-Peat Manvick Expatriation Activities Provide Ihe intetnational manager with ar orientation program before the assignment (3. 4. S. Hl(«kt. BtJtk et ill . (Mdou & Mendenhull. Klaus.7.7. 19. 19»tl . l w .« (2 US M N C M . 3M. 199t . Wrrthcr el al.24) Bechtel. 19.il.S ( B 0 U 5 MNC<)^ 15.Inlerv JO. Scullion.21. • " . Coca Cola Foods Ciba-Geigy Dow Chemicals 3M.S (Ifi. 12. IW5 . I W l .5. Gillette Colgate-Palmolive. Dow ChemiLiil. 13. Solomon.C : 12.21.12.-> Give new international assignees realistic career and job previews Interview Ihe spouse of the manager as part of the selection process Make iniemational asiignnient planning a part of a career development process Communicate the value of international assignments to the company's glohal mission Make international ii'-^ipnnn'nts . Bechtel.9.20. 13.-/L!S M N C I . I I . Honeywell. iyS4 • tEiltriic-il 2. Northern Telecom Send the expatriate for a visit to the host country (provide a period of orientation abroad) Involve the family in the orientation program Bstahlish mentor relationships between expatriates and executives from home location for general career advice to reduce the "out of sigbl out of mind" dilemma Develop a network of contacts to keep the expatriate up-to-date on day-to-day activities of home-country operations for social support and information exchange Organize social activities at the foreign site iri order to faeiiitate exchange of information anii problem solving in an informal setting Assist [he expalriaie's spouse in fmding a job ASMS! expatriate in finding schools for children Gillene.5. Citibank Avon. UBS.8.il rt. Training and Career Development (3. IW4 . tW. 3M. Honeywell 3M ABB Intel. 21. provide a challenging international assignment wilhin three to five years after entry Provide oppoitutiities to learn about international finance.'. Rnihwell. Nordson Ciba-Geigy 3M.).25) Cited Examptes Use third-i:uuiiuy nuliunals tor inlemalional asslgnmenls Invesl in promoting iriemalional opponunities To sTudents Retruil sludents who have lived or were educaled abroad Recruil women for international a-ssignmenis Provide shon-icrm assignmenls to increase Ihe pool ot employees with international experience Base the seleclion of iniemational managers oit long-tenn hurniin resource foteca. Bi. i . 1W> . Ciba-Geigy.'. 22.m. t6.Human Resource Practices that Can Effectively Select and Develop Successful Expatriate Managers Activil Staffing ( •|i!i-.st.16. • I V .20.i uirnliEnin lor uilvantL-mfnt to scniiir niaiiap'riicnl 3M Colgate-Palmolive Colgate-Palmolive.C. 12. • C. Dow Chemicals. 17. 1. I*.C\ 15. Sotnni™.n. Seiben si al. 8.24.24. Howard. Eiow Chemicals Provide opportunities for the returning manager to use knowledge and skills leamed internationally Monitor career paths of international managers so that they are not relegated to the '"slow track" because of their international assignments Get the high-pertbrming international managers retogni/ed/promoted upor return home Assign the repatriated employee and family to a welcome group cotnposad of other farnilies wbo have lived abroad Key to Rcfertntes.'l . 14. S..11.pifliin. Intel Repatriation Activities Pian a specitic assignment for the retummg cxpairiate (3. 15. Chevron Overseas Petroleum Colgate-Palmoiive Intel.13.inkTvi™. H a m ' ™ .l . marketing and other intem^onal functional areas Encourage international managers to manage a multicultural workfon:e Use intemalional :isMgnmenl as lop managi'intnt dcNclopmt'ni nn>l Performance Appraisals and Compensation Modify the performance evalualion system to incorporate ihe distincdve condition* of loial cokintrius Ensure timely perfonnance review Provide financial counseling for international managers Provide a relocation allowance and a reentry bonus Provide an equitable intemiitinnid aniipi-n-.SK US gnidualc sILfJeri. Survcv 50 'HUMAN RESOURCE PLANNING .-nr i. 18. 12. 18. 18.13. IVU . Ciba-Geigy.'S MVC>.S (67 US Espats in Japan). I W4h . t W S . tflW.22) Dow Chemicals. Honeywell.17.5.7.4.Galei. 13. t-ddmaTi n a t . t T J . 1W4 .S (i(IEipaLs/27 US MNCsl. Sleptwnw 4 Htatk.t."•U'rn.. RcjnoUs. tWSa-liilervie-iJ^.j: 6.2.i Till TTiiiEiiigfrnonl piv-uii'ii. 24.S 1135 EipUiflJS MNC=1. Dow Chemicals 3M.i. I W S .|. Monsanto.C S (3 US MNCs) .twcrv 7. Northern Telecom Colgate-Palmolive. S . I I . UBS (E) Colgate-Palmolive Provide expatriate tnanagers wiih technical training to enhance their International background Provide language training. .S (4J Bnrish MNCsl: 18. Inlcmcws. tW2 . tWMc tnlemews. •». t W I .4.f : coniFptuat. Shilling. Ciba-Geigy.

KMS de Vries.. IWZ. The emerging emphasis on cultivating the manager's mind. IWi HUMAN RESOURCE PLANNING 5I . Wachlcl & Veak. and is able to balance the simultaneous demands of short-term profitability and growth. I W). IPS^. IW2: Wi^nhcc. role behaviors. I98J: l**n IWI.Ticliy.ing of intemational business. organizational. tJsuson. First. 1997). and way of thinking. and functional boundaries.. However. Adlciil Bunholomf*. IWiPuciL. 1995: Sno*.i Emphasis on socialization aspects of managemeni development Performance Management & Compensation Performance incentives and rewards reflect global coniribuiions Career opportunities equitable across the world Performance appraisals focus on global mindset and behaviors Flexible international compensation system to encourage "low cost" mobility Emphasizing rewarding careers rather than short-temi ouicomes only Organizational Design Designing jobs across boundaries to increase global leaming Focus on process. because of the differences between expatriate managers and global managers in their current and future roles in the organization. in contrast to expatriate/international managers who are identified by location as execulivcs in leadership positions that involve cross-border assignments (Pucik. family situation. IW2: Evan. reflecting the ever-changing nature of the global competitive environment. not on structure and procedures HR systems aligned with needs of transnational teams Removing HR barriers to organizational flexibility Global Communication Building intortnal communications across boundaries Promoiing a global competitive culture ril«iiulh. relational abilities: leadership factors.sfer of knowledge across boundaries Selection criteria do not favor any panicular culture Implementing global job posting system The point of entry does not limit future opportunities [nvolving top management in the global staffing process Career Development & Training Training delivered by (runsnational faculty to multicultural teams Intemational assignments integrated Into the career-planning process Karly iniemaiiiinal experience encouraged Intemational assignments encourage global leaming Training stimulating a sense of cultural empathy and adaptabiliiv Intemational assignments can take on many forms. may require rethinking the traditional HR approaches to global leadership development. there are naturally also significant differences in expectations regarding the full set of desired competencies.m. They are related to five fundamental factors: professional and technical competence. 1992^ Banlw ft (Jhoihjl. versus the traditional emphasis on competencies in the job. RhiiKsmilh. global managers are defined by their state of mind. and cultural awareness. In spite of this major conceptual difference. SnclliHiunhnck. the review of research seems to indicate that at least some of the attributes of successful expatriate and global managers may be identical. The requirements put on global managers are substantially more complex and dynamic. In short. linked to a manager's development need. has an ability to work across cross-cultural. truly global leadership development should focus on providing a broad spectrum of high-potential employees worldwide Human Resource Practices that Support the Development of Global Managers Staffing Recruiting worldwide for positions anywhere in the world Staffing decisions support fast tran.

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

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