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

as well as on the identification of persharing infonnation. organizations select. 1981. with a well-rounded understanding of executives (Pucik. 1994). the terms expatriate manager and "international manager" are used as equivalents. globalizing finns (Nohria & business problems. 1992. this article is a critical expatriates: many. 1985. there seems to be a sustaining opportunity. Dulfer. "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. Lenway & Bagozzi. expatriates are global managers. not empirical) about global through which tional capabilities for global operamanagers. there seem to tive processes ate and global managers. and characteristics of the two types Meeting this of managers. The definition of an Ronen. 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. as these terms are interchangeable in most of the Defining the Expatriate vs. ferences between the expatriate and Some global managers may be the global manager. functional. 1990: Oddou. 1985. who However. 1991. have explores the definitions of the two challenge for most been expatriates at some point in concepts. Tichy & ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ international business and an ability to work across cross-cultural and Sherman. be fewer studies (most of them conBuilding and sustaining organizaceptual. most of the work has been focused Ghoshai. competencies.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. This set of attitudes have introduced HR practices that would help is often described as global mindset. CEO. Whirlpool Corporation HUMAN RESOURCE PLANNING 41 . 1989: Evans. In this review. if not most. and explains the differtheir career. develop. agers. 1991: Arthur & expatriate/international manager is linked to Bennett. Within the abundant managers frame tions is a critical challenge for most research on expatriate managers. and characbusiness problems (Murtha. researchers have analyzed the business. 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. 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. in management developBuilding and perceives global competition as an ment literature. literature. who has a flexible and open effective development of global managers and mind. At aries and on balancing competing country.xt. 1990: and global managers. the same time. 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. and functional priorities that emerge causes of failure in overseas assignments and in the globalization process. 1993. In an effort to clarify the difglobal operations Bartlett & Ghoshal. 1992). Lioss-functional boundaries. knowledge." -Dave Whitman. Bartlett & Ghoshal. competencies. and experience sonality and psychometric tests that could be across national. differentiate between expatriate (intemational) Mendenhall & Oddou. 1995). 1989. but probably only few ences in behaviors. Global thinking places high value on possess. and business boundused to measure such personal qualifications. globalizing firms. and retain compeThe emphasis on the mindset helps to tent expatriate managers (Tung. The term "expatriate (or intemational) manager" defines an executive who is able to assume a leadership position fulfilling international assignments across countries and cultures. 1997).the location of the assignment whereas the global manager is defined by his or her frame of mind. The article also identiA literature review' show. Gates. teristics that the international manager should 1998).

multi-country. motivate all members of the organization to cooperate. Yeung & Ready. in addition to purely technical and professional skills and competencies. In one of the earliest articles on this subjecl. Tichy. Bartiett & Ghoshal. Hays (1974) categorizes expatriate managers into four types. studies revealing the global manager's profile. 1992. Pucik. 1988. reflect on complex problems in an appropriate way. Wachtel & Veal. impart confidence in their own ability to solve problems in difficult situations. those who are assigned abroad to "fix" a problem. 1992. and the effective HR practices to develop the global manager ate still mainly at a conceptual stage (Kupfer. improvise and find new solutions in the face of unexpected changes. research on global managers is relatively scarce. and the chief executive officer oversees and directs the entire foreign operation. Similarly. 1992. A number of researchers focused on competencies of effective international tnanagers. including those assigned to line management and specialized functional positions. 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. and those who go abroad as "high-potentials" to broaden their development before inoving up to senior management.The 21st-century Expatriate Manager Profile (adapted from Howard. multi-functional. 1992) Skills Multidimensional Perspective Proficiency in Line Management Prudent DecisionMaking SkilLs Resourcefulness Managerial Implications Core Skills Extensive multi-product. 1995. Werther. McCali (1992) has 42 HUMAN RESOURCE PLANNING . and most of all. The technical troubleshooter is sent to analyze and solve a technical problem. 1995). international managers must have clear managerial qualifications. Adler & Bartholomew. the determinants of the successful global manager. BKHAVIORS AND COMPETENCIES Expatriates' Behaviors and Competencies. multi-company. They should be able lo perform tasks as members of a team. In this context. 1992. 1992. Pucik (1992) differentiates between "demanddriven" and ••learning-driven" international assignments. 1992. Evans. The structure reproducer is responsible for reproducing in the foreign subsidiary a structure similar to that of another part of the company. The operational expatriate is the individual who carries out a well-defined position in an ongoing business. Besides defining what the global manager's competencies and behavior should be and how they differ from that of the expatriate manager. multi-indtistrj'. According to Dulfer (1990). Derr and Oddou (1991) identify two types of expatriates. Kets de Vries & Mead.

respect differences among people. and leadership style. country managers. have a sense of adventure. seek and use feedback. and functional managers — that should together lead the organization to achieve globalscale efficiency and integration. 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. Cross-Pottinator. accept responsibility for learning and change. be biased toward action. such as an ability to build effective cross-cultural teams. developed by. According to Bartlett and Ghoshal (1989. Focusing on one key competency expected of expatriate managers. 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. 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. the "international knowledge. 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.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." Rothwell (1992) explored its three principal components: general knowledge about the world and global economy: national information ahout conditions in a specific country. International managers should show curiosity about how things work. the energy. those who can conceptualize complex geopolitical and cultural forces as they impact business. 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. 1992). Looking toward the future. and business understanding of strategy. skills. demonstrate readiness/hardiness about leaming. Global Managers' Behaviors and Competencies. Howard (1992) has summarized the skills required of the 21st-century expatriate manager (see Exhibit I). and cross-market capacity to leverage learning on a worldwide basis (see Exhibit 2). national-level responsiveness and flexibility. global managers are individuals that have been selected for. Tichy (1992) refers to global managers/leaders as •'globalists. and have shown consistent growth over time. Architect.e. Builder.. and skills as global '"change agents. Their principal characteristic is the ability to resolve complex and potentially contradic- tory issues embedded in the global environment." characterized as individuals who have a global mindset — i. process. and possesses a well-honed set of global leadership skills and behaviors. and talents to be global networkers. and CO opted into the broader transnational organization. but they add that there is no such thing as a universal global manager." 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. there are three groups of global specialists — business managers. and Champion HUMAN RESOURCE PLANNING 43 .

Murtha. manage change. 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. balance paradoxes. Is global mindset a tneasurable construct? Recently.'" In this respect. while at the same time establishing guidance for ways in which we should behave. tastes. consist of championing international strategy. These capabilities are as follows: to be a catalyst/manager of strategic change. Rhinesmith defined the global manager as an executive with a global mindset. to articulate 44 HUMAN RESOURCE PLANNING a tangible vision. 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- . (The other set of global competencies. 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). trust process over structure. values. technologies. value differences. broader picture. professional. Several studies concentrated on global managers" way of thinking. in a recent study of managers in major global companies. operating as cross-border coach and coordinator. and seek lifelong leaming. acting as intercultural mediator and change agent. 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. 1994). Research conducted by the Ashridge Management Research Group led to differentiation within two sides of the global managers" competencies (Barham & Anial. to exhibit a strong customer orientation. trends. Lenway. individuals with a global mindset should be able to drive for the bigger. or what Barham refers to as the "being"' competencies. Rhinesmith (1993. and managing personal effectiveness for international business."" In an 1993 article.) Finally. or "global tnindset. and to get results. or manage strategy to action. 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. to be a catalyst/manager of cultural change.Differences Between the Expatriate and the Global Manager (Adler & Bartholomew. able to scan the world from a broad perspective. the capacity for "pattern recognition" {sorting out relevant from irrelevant infonnation). to empower others to do their best. are presented later in the section on the attributes of successful global managers. the ability to instill values and inspire others and build and maintain organizational networks. Yeung and Ready (1995) identify six leadership capabilities that corporations value in global managers. and the ability to cope with stress. and strategies. always looking for unexpected trends and opportunities to achieve his or her personal. as Barham calls them. The "doing"' competencies. or organizational objectives.

The differences in skill characteristics are seen as driven primarily by the degree of cultural and organizational complexity facing managers during iheir careers. 1979. Feldman & Tompson. 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. and coordination. Findings by Dowling (1990). 1990. Tung. Reviewing the behaviors and competencies required of expatriate and transnational managers. the organizational capability to develop effective expatriate exeeutives is hindered by the inadequate management of the expatriation process. the expatriate inability to manage and cope effectively can be caused by personal issues. 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. Dunbar & Katcher 1990: Dulfer. Gregersen & Mendenhall. whiie on the supply size.EAILURE premature reentry and concluded that this argument is not fully sub. the lack of cross-cultural adju. 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. Hogan & Goodson. Weeks. Harzing concludes that HR executives should continue to examine expatriate failure. but more attention should be paid to the reasons behind the failure (defined as premature return. Misa & Fabricatore. In contrast.LOBAL MANAGERS. The study of predictors of expatriate failure now has a long history in management literature.stantiated by empirical evidence. and most important. Hogan & Goodson. and (2) a completion of the overseas assignment does not mean that the expatriate failure has been avoided. Gregersen & Mendenhall. Some of these personality characteristics will be examined in more detail later while reviewing the literature on the attributes of successful expatriate managers. 1971. Scullion. INDIVIDUAL EACTORS First. They are caused on the demand side by the everincreasing pace of internationalization. Recently. Comparing the Two Sets of Behaviors and Competencies. Harzing (1995) reviewed the literature on expatriate failure measured as a HUMAN RESOURCE PLANNING 45 .sets. 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 have created a scale to assess the degree lo which managers develop global mind. we are not aware of any study that focuses on predictors of failure of global managers. 1987. 1992. and Weeks (1992) suggest that shortages of experienced and capable expatriate managers have become more acute over the past five years. 1992. 1992: Mendenhall. Black.tradictory pressures of global integration. 1994). however. It was also influenced by the number of children at home and employer's policies (Harvey. FACTORS ASSOCIATEU WITH KXPATRIATE AND (. 1981: Black. 1990. Dunbar & Oddou. Aside from the personality attributes that may cause the failure of the expatriate assignments. the literature has focused on three additional individual-level issues: A) Willingness to Relocate. 1992). 1996). 1992. 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. responsiveness. from selection and and handling of the initial culture shock to repatriation (Howard. Nevertheless. The focus of the study was to provide an intentional measure of that willingness. Adler and Bartholomew (1992) summarize the main differences between the two concepts (see Exhibit 3).stment. the impact of policy variables on organizational and individual differences concerning globalization. Scullion (1994). which may include a variety of individual as well as organizational factors. 1980. 1990. lack of the right attitudes and skills to communicate with people from different cultures. 1995). individual and organizational progress in becoming global and factors that account for variations in the speed ot globalization across and within organizations. and poor pertbrmance during intemational assignment). Personality attributes such as the inability to deal with stressful situations. Brett and Stroh (1995) studied empirically the willingness of American managers to relocate intemationally. 1992. Gregersen.

and the family situation. 1982: Pucik. !t is clear [hat future research should include investigations of the effects of dual-earner families. those who "go native": and those who become "dual citizens" — expatriates with high allegiance to both the parent and local affiliate. 1989: Dowling. Companies should implement practices such as job search assistance and pooling available positions in a geographically based consortium of companies (Catalyst. with an emphasis on expatriate selection and the expatriation process. 1974. and 4) and the effects of national cultural differences on the outcomes of international assignments (Gould & Penley. crosscultural. 1985. 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. personality traits or relational abilities: environmental variables. the poor orientation programs. 1991). In their study. 1992).S). "softer" factors. Gertsen. 1989. 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. 3) the effect of language and cultural training on expatriates (Gertsen. Dunbar & Oddou. and international operative. 1981: Black & Mendenhall. 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. 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. 1981. Gregersen. Scullion. Howard. the ineffective cross-cultural training. 1990. 1992. but that stronger efforts should be deployed by organizations to assess other. 1994). 2) the personality profiles and psychological attributes of successful international managers (Phalak. 1988: Black & Mendenhall. many authors have described the difficulty of managing dual-career marriages." 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 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. 1990. 1994). functional head. 1991). 1991. Dunbur & Katcher. Criticizing what they believe is "the most common American approach" to expatriate selection. C) Expatriate Commitment. Derr & Oddou. 1981). 1992. 1990). 1989. and the unattractive compensation packages as common organizational factors that would imminently lead to overseas failure (Mendenhall. 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. Rothwell. 46 HUMAN RESOURCE PLANNING . Harrison. training. the lack of career planning. those who "leave their heart at home". 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. 1990). Wederspahn & Stahl. Hogan & Goodson.al mobility. Dual-career couples are also more likely to turn down international assignments because of the expected negative effects of a career interruption (Stephens & Black. 1990. Tung (1981) identified four groups of variables that contribute to expatriate success: technical competence on the job. 1987: Blocklyn. B) Family Issues. In one of the earliest studies of the expatriation process. troubleshooter. They have identified four types of expatriate commitment: the "freer agents" with low level of commitment to both the parent and the local operation. ORGANIZATIONAL FACTORS In the same vein. Smith. Cope. 1990: Black. Bennett. Mendenhail and Oddou (1985) identified four key dimensions in the expatriate adjustment The ineptitude of the organizations in providing effective expatriate selection. Tung. 1992). 1990: Swaak. I99. 1992: Forster. Black. 1992. such as relational. 1981: Black & Stephens. and interpersonal abilities as well as adaptability potential of the spouse and other family members (Tung. The inability of the spouse to adjust to the new country was cited in many empirical studies as a reason for expatriate failure (Tung. 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.

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

Assessment for intemational assign- ment is becoming increasingly rigorous and often involves the candidate's spouse.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. From the management development perspective. as well as on making sure that the international track attracts those with the best potential to succeed in the firm.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 . international assignments are increasingly viewed as an intrinsic part of career progression. The structure of assignments is becoming more flexible.ssignments. 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.

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

I I . 18. I I . Honeywell 3M ABB Intel.20. Northern Telecom Colgate-Palmolive.S U5H US HRMuniKetJi. IVU .4. Dow Chemicals.22.\-i-Liili-n.i. 12. Rnihwell. 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. Arthur Andersen nL'liouse Electric. I W J • CS** M I S M S i .8. S . 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-.Human Resource Practices that Can Effectively Select and Develop Successful Expatriate Managers Activil Staffing ( •|i!i-.. 13. • " .'S MVC>. Chevron Overseas Petroleum Colgate-Palmoiive Intel. S. . 19»tl .6.f : coniFptuat. Pudti.il.st. 18.inkTvi™. ABB.iii. Intel Repatriation Activities Pian a specitic assignment for the retummg cxpairiate (3. 24. Dow ChemiLiil. UBS (E) Colgate-Palmolive Provide expatriate tnanagers wiih technical training to enhance their International background Provide language training.24. W « k s .'l .l .5. BtJtk et ill . Mitsui & Co. 1.i Till TTiiiEiiigfrnonl piv-uii'ii. 199t . 3M. cultural and business orientation For high-potentials. t W I . Ciba-Geigy. Coca Cola Foods Ciba-Geigy Dow Chemicals 3M. D C I T S Odiitiu. 22. t T J .m. Nordson Ciba-Geigy 3M.il>niji| (References) (1. tflW.24) KPMG-Peat Manvick Expatriation Activities Provide Ihe intetnational manager with ar orientation program before the assignment (3. H a m ' ™ .pifliin. 21. Solomon.S (67 US Espats in Japan).SK US gnidualc sILfJeri. Oddnu. Scullion.S (i(IEipaLs/27 US MNCsl. Dow Chemicals 3M. Honeywell. Gillette Colgate-Palmolive.24) Bechtel.. Honeywell. IW2 . •». Seiben si al. l w . USA Whirlpool. 1992-.22) Dow Chemicals. 1W> . 19QS .S ( B 0 U 5 MNC<)^ 15. t W S . 1W4 . UBS. IW4 .5. S. Klaus. Citibank Avon.9.j: 6.-> 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 .« (2 US M N C M . Intel. iyS4 • tEiltriic-il 2."•U'rn.i uirnliEnin lor uilvantL-mfnt to scniiir niaiiap'riicnl 3M Colgate-Palmolive Colgate-Palmolive.7. t6. 8.21.13. Sleptwnw 4 Htatk.'. IW5 . Monsanto. 13. rjunlrar i Kalcher. tWSa-liilervie-iJ^.21. I*. Sotnni™.ri.irum pji-Viiyt (10.21.S 1135 EipUiflJS MNC=1. Training and Career Development (3.13. 2J.n. I W4h . • C.5.16.i EviKit. i .C.22.20. RcjnoUs.C : 12.fi l4. 17. 19. provide a challenging international assignment wilhin three to five years after entry Provide oppoitutiities to learn about international finance. tW2 .2.20.:inuLl.7. Bi. 14. Shilling. Bechtel. (Mdou & Mendenhull. tWMc tnlemews.11. " C ' S : C a s t Studs. 19.24. I W l . 13.3. 18. Hl(«kt.7.(": 10. 15.. tW.S (4J Bnrish MNCsl: 18. 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. Inlcmcws.S (Ifi.17.-/L!S M N C I .C\ 15.8. Ciba-Geigy.4.8. Intel..Inlerv JO.twcrv 7.).5. 12. t W I • S — I t J J Elpali/l. Wrrthcr el al.'. • I V .12. 4. I W S . Howard.|. 12.Galei.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. Survcv 50 'HUMAN RESOURCE PLANNING . t-ddmaTi n a t . 3M.t.C S (3 US MNCs) . 18.il rt. Ciba-Geigy.-nr i.

. Adlciil Bunholomf*. In short. there are naturally also significant differences in expectations regarding the full set of desired competencies. and cultural awareness. IW2: Wi^nhcc. tJsuson. In spite of this major conceptual difference. However. IW2: Evan. versus the traditional emphasis on competencies in the job.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. The requirements put on global managers are substantially more complex and dynamic. 1992^ Banlw ft (Jhoihjl. has an ability to work across cross-cultural. and is able to balance the simultaneous demands of short-term profitability and growth. because of the differences between expatriate managers and global managers in their current and future roles in the organization. role behaviors. RhiiKsmilh. the review of research seems to indicate that at least some of the attributes of successful expatriate and global managers may be identical. KMS de Vries. 1995: Sno*. I W). SnclliHiunhnck. They are related to five fundamental factors: professional and technical competence.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. in contrast to expatriate/international managers who are identified by location as execulivcs in leadership positions that involve cross-border assignments (Pucik.m. IWiPuciL. First.ing of intemational business. organizational. linked to a manager's development need. global managers are defined by their state of mind. may require rethinking the traditional HR approaches to global leadership development. 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. IPS^. IWZ. and functional boundaries. reflecting the ever-changing nature of the global competitive environment. IWi HUMAN RESOURCE PLANNING 5I . and way of thinking. relational abilities: leadership factors. family situation. 1997). 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. I98J: l**n IWI.. The emerging emphasis on cultivating the manager's mind. Wachlcl & Veak.Ticliy.

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

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