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Expatriates’ Pet Peeves Based on Their Experiences (contd.)

Expatriates’ Pet Peeves Based on Their Experiences (contd.)

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Culture Shock

 Culture shock is a state of disorientation and

anxiety about not knowing how to behave in an

unfamiliar culture. The cause of culture shock is

the trauma people experience in new and

different cultures, where they lose the familiar

signs and cues that they had used to interact in

daily life and where they must learn to cope with

a vast array of new cultural cues and

expectations.

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Stages of Culture Shock

 Honeymoon – when positive attitudes and expectations, excitement,

and a tourist feeling prevail

 Irritation and hostility – the crisis stage when cultural differences

result in problems at work, at home, and in daily living

 Gradual adjustment – a period of recovery in which the “patient”

gradually becomes able to understand and predict patterns of

behavior, use the language, and deal with daily activities, and the

family starts to accept their new life

 Biculturalism – the stage at which the manager and family members

grow to accept and appreciate local people and practices and are able

to function effectively in two cultures



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Subculture Shock

 Subculture shock occurs when a manager is

transferred to another part of the country where

there are cultural differences – essentially from

what she or he perceives to be a “majority”

culture to a “minority” one.



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Training Techniques

(as classified by Tung)



 Area studies, that is, documentary programs about the

country’s geography, economics, sociopolitical history,

and so forth

 Culture assimilators, which expose trainees to the kinds

of situations they are likely to encounter that are critical

to successful interactions

 Language training

 Sensitivity training

 Field experiences – exposure to people from other

cultures within the trainee’s own country.

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Stage of Globalization and Training Design

Issues

(Exhibit 9-6)



Export Stage

 Degree of rigor: Low to moderate

 Content: Emphasis should be on interpersonal skills, local culture,

customer values, and business behavior

 Host-Country Nationals: Low to moderate training of host nationals

to understand parent country products and policies.



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Stage of Globalization and Training Design

Issues

(contd.)



MNC Stage

 Degree of Rigor: High moderate to high

 Content: Emphasis should be on interpersonal skills, two-way

technology transfer, corporate value transfer, international strategy,

stress management, local culture, and business practices.

 Host-Country Nationals: Moderate to high training of host

nationals in technical areas, product and service systems, and

corporate culture.



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Stage of Globalization and Training Design

Issues

(contd.)



MDC Stage

 Degree of Rigor: Moderate to high

 Content: emphasis should be on interpersonal skills, local culture,

technology transfer, stress management, and business practices and

laws

 Host-Country Nationals: Low to moderate training of host

nationals; primarily focusing on production and service procedures.



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Stage of Globalization and Training Design

Issues

(contd.)



Global Stage

 Degree of Rigor: High

 Content: Emphasis should be on global corporate operations and

systems, corporate culture transfer, customers, global competitors,

and international strategy

 Host-Country Nationals: High training of host nationals in global

organization production and efficiency systems, corporate culture,

business systems, and global conduct policies.



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Components of an Expatriate Compensation

Package

(Exhibit 9-8)



Salary















Home rate/home currency

Local rate/local currency

Salary adjustments or promotions – home or local standard

Bonus – home or local currency, home or local standard

Stock options

Inducement payment/hardship premium – percentage of salary or

lump sum payment, home/local currency

• Currency protection – discretion or split basis

• Global salary and performance structures



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Components of an Expatriate Compensation

Package

(contd.)

















Taxation

Tax protection

Tax equalization

Other services

Benefits

Home-country program

Local program

Social Security program



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Components of an Expatriate Compensation

Package

(contd.)



















Allowances

Cost-of-living allowances

Housing standard

Education

Relocation

Perquisites

Home leave

Shipping and storage



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Expatriates’ Pet Peeves Based on Their Experiences (contd.)

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