By the end of this session you will be able to: Describe what is meant by an expatriate Explain the relationship between hiring local staff and expatriate staff Identify the costs of an expatriate manager Explain the terms Expatriate Acculturation & Culture Shock Explain the elements of Pre-departure and repatriation training Identify the personal traits of a successful expatriate

Expatriate manager An expatriate manger is one who work and live in a foreign country. Transnational hotel companies often transfer qualified, seasoned managers from one property to another. This process of transfer and rotation creates a class of executives known as expatriates.

Expatriate manager An expatriate manger is a person working in any country other than their own. Typical positions are General manager, F&B manager, FOH manager, Executive Chef and Engineers at all levels Major chain hotels will transfer and rotate their executives exposing them to training, experiences and career opportunities. Rotation also permits hotels to deploy talent where they most need it.

The roles of an expatriate manager To represent the organisation in dealing with business people, government officials, suppliers and customers. To develop a healthy relationship with local employees, and with the host communities. To reconcile the goals of the hotel company, the owner and the host country (which may differ markedly).

Local Versus Expatriate Hiring 1)Local Laws - permitting the number of foreign staff 2)Hotel Policies - frequent transfers, position rotations and individual career tracking 3)Skills Transfer - the understanding that the expatriate manager will help develop his/her local counterpart and that the job will be eventually be filled by a local replacement 4)Work Visa & Immigration Restrictions

Cost of the expatriate manager An appropriate compensation package is required to maintain expatriate managers. They are being required to uproot and change their families lifestyle. The challenge when designing a package is to maintain a standard of living equivalent to their colleagues in their host country as well as compensating them for any additional costs . Such as relocation and transportation costs.

Cost of the expatriate manager Allowances - are prerequisites that are given to an expatriate employee’s spending power up to home country standards. These are given net (tax paid) whereas differentials are considered taxable income. Cost of living adjustments to the salary Housing differentials Goods of differentials - are designed to protect the employee from exchange rate movements and price movements

Cost of the expatriate manager Transportation Differentials -are designed to compensate for increased travelling expenses Allowances for vacations/home leaves Reimbursement of educational expenses for children of the expatriate Tax Reimbursement. Most expatriate are paid a net salary inclusive of all added costs and tax liabilities. Many operators will pay for all the employee’s company-related income tax obligations above a set amount.

Expatriate Acculturation & Culture Shock Self Orientation: how an individual sees themselves Others – Orientation: how an individual sees and understands others Perceptual Orientation: how an individual sees and understands situation and puts them into context. Culture shock results from being immersed in an unfamiliar environment. It can cause confusion, disorientation and discomfort

Expatriate Acculturation Self Orientation Stress reduction Physical mobility Dealing with alienation Dealing with isolation Realistic expectations prior to departure “Acculturation Profiles of Expatriate Managers” Columbia Journal of World Business, October 1986 Gary Odour

Perceptual Orientation: Others – Orientation: Relationship skills Willingness to communicate Non Verbal communication Respect for others Patience Perceptual Orientation: Flexible attitude High tolerance for ambiguity Being non-judgemental Being open-minded Operational independence

Pre-Departure Training This tends to focus on four main areas Cultural awareness Attitudes Knowledge Skills

Cultural awareness Training Raises participants awareness of cultural differences and their impact on business behaviour. Every one of us culture bound (to a certain extent). The world is viewed through the lens culture has provided And perhaps people react to culturally influenced perceptions of the world in culturally prescribed ways Leadership styles, training methods, motivation and communication styles will vary

Attitude Training Focuses on how they are shaped. It is critical for a manager to understand the difference between nature and nurture. That is, attitudes and beliefs – including their own – are acquired from conditioning and the environment (nurture). They are not inherently correct or inborn (and therefore somehow more natural) People who do not understand are adopting Ethnocentrism (superiority over another)

Social & business etiquette History (folklore) Knowledge Training Social & business etiquette History (folklore) Current affairs & general business conditions Values of the host country Geography and climate Sources of pride Religion Political/legal/economic structure

Concentrates on skills building in such areas as: Language Skills Training Concentrates on skills building in such areas as: Language Non verbal communication Cultural stress management Adjustment & adaptation Part of this may determine the individual's personal coping mechanisms and those that are most effective.

Pre-Departure Training Family orientation Social & business etiquette History & folklore Current Affairs Values of host country Geography, climate and the physical environment Sources of pride: artists, things of interest Religion Political/Economic Structure Prevailing business practices Matters of currency, time zones Transportation Hours of business Public holidays

Repatriation of Expatriate Managers Discussion of current developments and trends at home Instruction on new company personnel, operating procedures and organizational changes Professional/financial counseling Re-entry bonuses Relocation allowances Preparation for reverse culture shock and readjustment

Personal Traits of a successful Expatriate Manager Sense of humour The ability to forgive Tolerance of ambiguity/Open mindedness Empathy Self-reliance Flexibility and adaptability Curiosity/Patience Perceptiveness Strong sense of self Non-judgmental attitude