Chapter 5: International Assignments

1. Why is it more appropriate to call Edström and Galbraith’s third motive for using international transfers ‘coordination and control’ rather than ‘organisation development’?

Edström and Galbraith’s description of this motive centers exclusively on control aspects and most of the IHRM literature published in English has interpreted it in this way. Additionally, all three motives identified by Edström and Galbraith may in fact lead to organisation development defined as the increase of the company’s potential to succeed and compete in the international market. Therefore, organisation development is not a goal of international transfers as such, but is rather the result of knowledge transfer, management development and the creation of a common organisational culture and an effective informal information network.

2. What type of staff do MNCs with an ethnocentric staffing policy appoint to top management positions in their foreign subsidiaries?

MNCs pursuing an ethnocentric staffing policy typically appoint parent country nationals to top positions in their subsidiaries. These traditional relocations may be complemented by short-term assignments if specific additional skills are required in the subsidiary.

3. Why are MNCs increasingly looking for alternative forms of international assignments?

The main reasons lie in a growing reluctance of traditional expatriates to relocate abroad, mainly due to dual-career issues, and the substantial cost involved in relocating traditional expatriates. In addition, the different forms represent a toolbox that helps companies to better adapt their global staffing to different strategic needs.

4. What are the advantages and disadvantages of using short-term international assignments?

Short-term assignments are useful for the transfer of specific skills, for example in the scope of multinational project work or when particular problem-solving needs arise. They are also more cost effective than traditional expatriation, require less bureaucratic effort and can be applied in a more flexible and timely manner. At the same time, short-term assignments make the development of effective relationships with local colleagues and customers more difficult and may also lead to a higher risk of marital problems due to more pronounced levels of stress.

5. On what criteria should assignment success be evaluated?

A comprehensive assessment of assignment success should include an evaluation of both individual (e.g. adjustment, promotion) and organisational (e.g. accomplishment of organisational tasks, repatriate retention) benefits that may result from the transfer. In addition, the assessment should not only be limited to the actual assignment period (e.g. task performance during the assignment) but should also include the post-assignment period (e.g. do attractive future assignments exist for the individual and to what extent does the repatriate transfer his or her expertise back to the home unit?).