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1/21Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002

International Personal Selling

and Personnel Management

Dana-Nicoleta Lascu

Chapter 15

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Chapter Objectives

Examine companies' expatriate management

strategies

Describe the different types of employees suited for a

company's international operations

Address issues related to expatriate management,

such as motivating international employees and

ensuring successful assignment performance and

repatriation

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International Personnel Issues

Hiring expatriates or locals is a function of the

companys involvement in the market

Market presence, entry mode and commitment to

market determine: Size of the sales team

Types of sales representatives

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International Presence

Companies using home-country middlemen

Rely on sales force of the intermediary for international sales

Companies using host-country brokers and agents

Rely on sales force of the intermediary for international sales

Companies using host-country manufacturers

representatives and distributors

Are engaged, at some level, in personal selling

Hires local salespeople to call on distributors

May have local sales office, or a wholly-owned subsidiary that

engages in the marketing function

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Expatriates: Home-Country Nationals

Preferred by companies whose products are at theforefront of technology:

Preferred when selling relies on extensive training and highly

specialized information

Preferred where there is a greater interdependence betweenoverseas unit and corporate headquarters

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Expatriates: Home-Country

Nationals, continued

Disadvantages:

High costs

Cultural barriers

Lack of local personal connections in the local

environment

Difficulty finding employees willing to take on

international assignments

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Expatriates: Third-Country Nationals

Employees working temporarily in the assignmentcountry who are NOT nationals of that country OR ofcountry in which headquarters is located

Speak numerous languages

Familiar with customs and business practices indifferent environments

Have learned, through experience, to adapt optimallyfor international assignments

Cost less than home-country nationals

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Host-Country Nationals

Local salespeople who work in the home country for

an international corporation

Understands the business environment and business

practices in the companys home country Well trained technically

Willing to return to home country to work for the

multinational firm

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Long Distance International Selling

Selling via the Internet or mail is likely to become an

important venue in approaching new customers

overseas in the near future.

Costs of distance selling are lower,

allowing for greater market coverage,but the selling

infrastructure (mail, Internet accessibility) lags

behind in developing countries.

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Managing International Employees

Companies that attempt to

transplant personnel policies

proven successful in the home

country will run against

obstacles in different

international environments.

Issues related to culture

come into play

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Buyer-Seller Relationship

Certain selling approaches

work better than others

Hard sell

Eye-to-eye contact

Business cards

Negotiation

Building relationships

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Understanding Values

National Character

Organizational Culture

Individual Personality

CONTENT: substantive aspects of the

interaction

STYLE: rituals, format, mannerisms, and

ground rules

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National Character

Personality traits shared at the national level

Individualism

Power Distance

Uncertainty Avoidance

Masculinity/Femininity

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Low- and High-Context Cultures

Low Contextcultures use formal,

direct communication that is

verbally expressed.

High Contextculturesuse

extensive nonverbal information to

convey the message: cues,

gestures, and facial expressions.

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Successfully Managing Expatriates

Success requires:

1) Effective selection / screening

2) Training and development

strategies3) Motivating for peak performance

4) Ensuring successful repatriation

50% of

expatriate

assignments

FAIL

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Recruiting Expatriates:

Ideal Expatriate

Has high cultural sensitivity and awareness

Has the ability to adapt behavior in cross-national

settings

Has high level of resiliency

Has extensive international knowledge and willingness

to gain it

Has a strong desire to work overseas

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Culture Shock and Motivation

A pervasive feel ing o f anx iety result ing

from ones presence in an unfamiliar culture.

Lessen shock by:

Helping employees know what to expect:Physical Environment

Social Environment

Creating additional incentives:

- Extrinsic factors: compensation, leave and family policies, and

career incentives

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Compensation Incentives

Cost of living adjustment

Housing allowance

Education allowance

Home-leave allowance

Moving allowance

Repatriation allowance

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Expatriate Obstacles

Gravitating toward home-country expatriates

Relying extensively on expatriate groups and forums(websites that unite expatriates in a region,newspapers, etc.)

Isolation

Isolation Going Native

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Repatriation Issues

Vast company changes

Loss of status

Lack of community

Reverse culture shock

AVOID by maintaining connection to company headquarters

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Chapter Summary

Addressed expatriate management strategies

Described the different types of employees hired for

firms international operations

Addressed issues related to ensuring the success of

international assignments