International Business (Intl Biz) 101: International Human Resource Management - Expatriate Repatriation Challenges, Career Management Reentry Shock Utilising International Experience

What This Is

Expatriate repatriation refers to the process of returning home after working abroad, often with significant international experience. This phenomenon matters in international business as it affects career management, organizational knowledge transfer, and employee retention. For instance, IKEA, a Swedish furniture retailer, has a dedicated program for repatriating expatriates to ensure they can leverage their international experience for the company's global growth.

Key Theories & Frameworks

• Repatriation Shock Theory: Describes the difficulties expatriates face upon returning home due to cultural, social, and career adjustments. Practical implication: Organizations should provide support and training to ease the transition.
• Career Anchor Theory: Suggests that expatriates' career goals and expectations influence their repatriation experience. Practical implication: Companies should consider employees' career aspirations when assigning expatriate roles.
• Social Learning Theory: Explains how expatriates learn new behaviors and attitudes while abroad. Practical implication: Organizations can facilitate knowledge transfer by encouraging expatriates to share their experiences with colleagues.
• Cultural Intelligence (CQ): Measures an individual's ability to adapt to diverse cultural environments. Practical implication: Companies should assess CQ when selecting expatriates and provide training to enhance it.
• Expatriate Career Development Model: Outlines the stages of expatriate career development, including preparation, assignment, and repatriation. Practical implication: Organizations should provide support and resources at each stage to ensure successful career development.
• Repatriation Adjustment Model: Identifies factors influencing expatriates' adjustment to life after repatriation, including job satisfaction, family adjustment, and cultural adjustment. Practical implication: Companies should focus on these factors when designing repatriation programs.
• International Experience Effectiveness (IEE) Model: Evaluates the impact of international experience on expatriates' career advancement and organizational performance. Practical implication: Organizations should measure IEE to inform expatriate assignment decisions.
• Global Mindset: Refers to the ability to think and act globally, considering multiple perspectives and cultural contexts. Practical implication: Companies should develop global mindset in expatriates to enhance their ability to work effectively in diverse environments.
• Expatriate Selection and Training (EST) Model: Outlines the process of selecting and training expatriates, including assessment, training, and support. Practical implication: Organizations should follow this model to ensure effective expatriate management.
• Repatriation Program Evaluation (RPE) Model: Assesses the effectiveness of repatriation programs, considering factors such as career development, cultural adjustment, and job satisfaction. Practical implication: Companies should evaluate their repatriation programs to identify areas for improvement.

Step?by?Step Application

1. Assess expatriate readiness: Evaluate expatriates' cultural intelligence, language skills, and adaptability to determine their suitability for international assignments.
2. Develop a repatriation plan: Create a plan for expatriates' return, including career development, cultural adjustment, and family support.
3. Provide training and support: Offer training and resources to help expatriates adjust to life after repatriation, including language courses, cultural orientation, and career counseling.
4. Monitor and evaluate repatriation success: Track expatriates' career advancement, job satisfaction, and cultural adjustment to assess the effectiveness of repatriation programs.
5. Foster a global mindset: Encourage expatriates to think and act globally, considering multiple perspectives and cultural contexts.
6. Develop a knowledge transfer strategy: Identify opportunities for knowledge transfer and develop a strategy to capture and share expatriates' international experience.

Common Mistakes

• Mistake: Assuming expatriates will automatically adjust to life after repatriation without support.
• Correction: Provide training and resources to help expatriates adjust to life after repatriation, including language courses, cultural orientation, and career counseling.
• Mistake: Failing to consider expatriates' career aspirations when assigning international roles.
• Correction: Assess expatriates' career goals and expectations to ensure they are aligned with the organization's objectives.
• Mistake: Not evaluating the effectiveness of repatriation programs.
• Correction: Use the Repatriation Program Evaluation (RPE) Model to assess the effectiveness of repatriation programs and identify areas for improvement.

Exam / Case Interview Tips

• Be prepared to discuss the challenges of expatriate repatriation: Familiarize yourself with the Repatriation Shock Theory and the Expatriate Career Development Model.
• Understand the importance of cultural intelligence: Be able to explain the concept of cultural intelligence and its relevance to expatriate management.
• Know the key factors influencing expatriate adjustment: Familiarize yourself with the Repatriation Adjustment Model and be able to discuss its components.
• Be prepared to evaluate the effectiveness of repatriation programs: Use the Repatriation Program Evaluation (RPE) Model to assess the effectiveness of repatriation programs.

Quick Practice Scenario

Scenario: A Brazilian firm wants to enter the German market. What entry mode is lowest risk?

Answer: Joint Venture. Explanation: A joint venture allows the Brazilian firm to partner with a local German company, sharing risks and expertise, and is often the lowest risk entry mode for international expansion.

Last?Minute Cram Sheet

• Repatriation Shock Theory: Describes the difficulties expatriates face upon returning home.
• Career Anchor Theory: Suggests that expatriates' career goals and expectations influence their repatriation experience.
• Cultural Intelligence (CQ): Measures an individual's ability to adapt to diverse cultural environments.
• Expatriate Career Development Model: Outlines the stages of expatriate career development.
• Repatriation Adjustment Model: Identifies factors influencing expatriates' adjustment to life after repatriation.
• International Experience Effectiveness (IEE) Model: Evaluates the impact of international experience on expatriates' career advancement and organizational performance.
• Global Mindset: Refers to the ability to think and act globally, considering multiple perspectives and cultural contexts.
• Expatriate Selection and Training (EST) Model: Outlines the process of selecting and training expatriates.
• Repatriation Program Evaluation (RPE) Model: Assesses the effectiveness of repatriation programs.
• Absolute advantage is different from comparative advantage – absolute means lower cost of production; comparative means lower opportunity cost, which always exists even if one country is better at everything.