Items Description of Module

Subject Name Management

Paper Name International Human Resource Management
Module Title Repatriation and In-patriation: Implications on HRM
Module Id Module no.-27
Pre- Requisites Basic knowledge of what human resource management is.
Objectives To study the concept of
Repatriation and In-patriation:
Implications on HRM

Keywords Expatriate, inpatriate, repatriate

 QUADRANT-I

Module 27: Repatriation and In-patriation: Implications on HRM

1. Learning Outcome
2. Meaning of repatriation, inpatriation and expatriate
3. Reasons of repatriation, repatriation process, factors affecting repatriation and management of
repatriation
4. Meaning of inpatriation and importance of inpatriaton and difference between inpatriate and
expatriate.
5. Summary

1. Learning Outcome:
After completing this module the students will be able to:
 Understand the concept of repatriation and inpatriation
 Understand the reasons of repatriation, repatriation process, factors affecting repatriation
and management of repatriation
 Understand the meaning and role of inpatriation in global HRM and difference between
inpatriate and expatriate.

2. Introduction
International human resource management deals with the human resource management activities by a
domestic company employing foreigners along with its nationals, and by a multinational or
transnational or global company. A domestic country which has its operations limited to the
boundaries of their respective domestic countries, but sometimes, these companies may employ
foreigners due to shortage of required personnel in domestic country. Hence, these domestic countries
also come under the scope of international human resource management. IHRM differs from domestic
HRM in various issues like involvement of different nationalities of employees (i.e. home country
nationals, host country nationals and third country nationals), involvement of different countries (i.e.
home country, host country and others), impact of international environment, numerous functions to
be performed, cross-cultural management, etc.
The term “expatriate” in International human resource management refers to the one who is working
and residing in a foreign country due to his foreign employment. Expatriates include home or parent
country nationals working in a foreign subsidiary or branch of parent company or MNC, foreign
employees working in domestic organizations, third country nationals or global nationals working in
MNCs, and host country nationals working in headquarters in parent country of MNC. Following are
the types of expatriates:
 foreigner
working in a
domestic
organisation

third country
host country
nationals
national (HCN) types of
(TCNs) working
working in expatriates
in subsidiary or
headquarters
headquarters

Parent country
nationals
(PCNs) working
in subsidiary

Fig 1: Types of expatriates (adapted from Rao, P. S., 2010).

Hence expatriates means all types of foreigners, employed either in headquarter in parent country or
in subsidiaries or branches in other countries.

Inpatriates is the term used for employees transferred from subsidiary to headquarter. The transferred
employees may include parent country nationals, host country nationals or other/third country
nationals. The PCNs may be transferred back to their home/parent country due to various reasons like
completion of foreign assignment, non-adjustment of employee or his family with foreign
environment, etc. The HCNs and other nationals may be transferred to headquarters due to their
performance etc. In this case, the HCNs become expatriates in parent countries.

Repatriate is the term used for parent country nationals employed in subsidiary or branch of MNC in
foreign countries, when they are sent back to their home or parent country due to one reason or the
other. In the following paragraphs, lets discuss repatriation, its reasons, process and repatriation
strategy in IHRM.
3. Repatriation
Repatriation is the term used for parent country nationals employed in subsidiary or branch in a
foreign country where MNC is located. It refers to termination of their foreign assignment and
sending them back to their parent/home country or the country where headquarter is located or the
home subsidiary from where they were expatriated. Repatriation is a part of expatriation process
itself.
MNCs or domestic companies employ expatriates due to their skills, talents, innovativeness,
knowledge and experience. They also act as home country controller over the operations of foreign
subsidiary. Expatriates are successful in foreign country with the help of their distinguishing job
skills, human relations skills, motivational levels, language skills, commitment levels, cooperation
from family to adjust in foreign environment etc. parent country nationals also show a strong sense of
belongingness with the subsidiary and are committed to contribute their skills, knowledge and
experiences for the betterment of the subsidiary. Instead of various advantages of employing parent
country nationals in host country subsidiary, they have to face various sacrifices also. They have to
leave their home country, their home country social circle, educational, medical and other facilities
available in home country. His/her family has to adjust in new country environment, take admissions
in educational institutes in host country. There may be lack of educational, medical, recreational, and
other facilities in host country.

3.1 Career cycle of expatriates:

The expatriate system involves certain stages or a career cycle based on international assignments.
This system is explained as follows:

International
Selection
Job in home assignment or offer
based upon
country or of an international
job fit.
Return headquarters job

Repatriation debriefing failure

Foreign International
country orientation
assignment and training
successful

Obtain permanent
residentship/citizenship
obtain
in foreign country

Job in foreign Settlement in

company foreign country

Fig 2: expatriates career cycle (adapted from Rao, P. S., 2010).

Fig 2 shows the various stages of an expatriate’s international career. The career cycle begins with
identifying the best performers in home country headquarters and offering them foreign assignment or
job in subsidiary company in another country. Or, the best deserving employees themselves can also
apply for a job in international companies in foreign countries. They are selected on the basis of
requirements of the job. Once they are selected, they are introduced in the foreign company.

However, the selected candidates may have personal problems to join foreign companies, like leaving
their home country, their social circles, adjustments of their parents and family, career of spouse,
education of children, etc. hence, the next stage before joining foreign companies, is preparing them
for foreign assignments or jobs.

Preparation for foreign assignment: In this stage, the employee and his family members are
prepared for foreign assignment and foreign orientation. They are provided with language training,
social and cultural orientation of foreign country to the employee and the family members and
providing job training to employee. The employees face new challenges under this stage, as they face
significant changes in their work and lives and have to adapt themselves as per the changing
conditions of foreign assignment and foreign culture. Some employees become successful in adapting
themselves while others fail in adapting themselves as per the requirements of job and other
conditions in foreign country. The successful employees work in same foreign company and obtain
permanent citizenship and settle down there. Or others look for other organizations in same country or
some other foreign countries. But most of such employees return to home country after completion of
their assignment. There again they have to readapt themselves as per the conditions of home country.

Expatriates failure:

Some of the expatriates fail in their first foreign assignment. Some fail at earlier stage itself or others
at different later stages due to cultural shocks or maladjustments with host country’s climate,
environmental conditions, lack of educational, medical or recreational facilities in host country, or
poor job demands, or non-adjustment with behavior of superiors or colleagues etc. the expatriates
failed in their foreign assignments are debriefed and repatriated to the previous job in home country.

Reasons of Repatriation

Following are certain reasons of repatriation of expatriates to their home countries:

a. Completion of foreign assignment: after the contract of foreign assignment is over in

foreign subsidiary, expatriate is repatriated back to his home country.
b. Lack of technical and managerial competence: the employee who may be successful in
home country may not be successful in subsidiary in foreign country due to variations in job
conditions etc. hence, unless and until proper training is given to such employees, the lack of
technical and managerial competence of foreign job becomes the cause for repatriation.
c. Inability to adapt to organizational climate and culture: organizational culture and climate
of subsidiary may be different from that of the parent company. The employee may not be
able to adapt to the organizational culture and climate including systems, methods and
practices of subsidiary company, hence, it becomes the reason for repatriation.
d. Unattractive pay package: lack of full knowledge about cost of living, tax structures and
other expenses in foreign country, may cost more to the employee. Also fluctuations in
exchange rate may also reduce their financial gains. Hence, the pack package may become
unattractive to such employees and they decide to go back to home country.
e. Immature behaviour: employees with broadmindedness and higher emotional maturity
easily adapt themselves with the organizational environment and the people and culture of the
host country. While immature people behave accordingly and don’t get adjust as per the
conditions of host country and hence, repatriated.
f. Poor facilities in host country: sometimes, lack of proper educational facilities, medical,
recreational and health facilities also force employees to go back to their home country.
g. Unsafe living and working conditions: in some countries, living and working conditions are
unsafe. These unsafe conditions like war like situations, racism attacks, etc. influence
employee as well as his family, which turns into repatriation.
h. Family problems: family problems of employee like old parents and other dependents,
family events, customs and traditions of family influence employee and his decision to
repatriate to home country.
i. Inability of spouse to adjust: sometimes, the spouse of employee fails to adjust to host
country environment. The climate and culture of host country may bother the spouse. In
addition, poor facilities of education, health, medical, recreation, language differences, etc
also influence the decision to stay in host country.
j. Inability to handle job responsibilities: sometimes competent employees also fail to
perform job responsibilities at foreign companiesdue to one or more problems discussed
above. Such employees fail to discharge the wider responsibilities at foreign companies and
hence, are repatriated.
k. Faulty selection procedure: faulty selection procedure of the company to select employees
fit for foreign assignment also results into repatriation. Employees not fit for foreign
assignment or not fulfilling the technical requirements of the job cannot survive in foreign
companies longer.
l. Lack of proper training: before departure to foreign subsidiary, pre-departure training is
given to employees and his family members for understanding the requirements of job,
cultural and social environment of the host country etc. lack of such training also result into
non-adjustment of employee and his family with foreign climate and culture and hence results
into repatriation.
All above mentioned factors influence the employee and his family directly and indirectly which
finally concludes the decision to go back to home country.

3.3 Repatriation Process

Repatriation process includes four phases:

preparation

Repatriation
physical
readjustment process relocation

transition

1. Preparation: Before actual repatriation, planning should be done for the expatriate’s
position in headquarter in home country. Whether he will be provided with existing
position or some other suitable position will be given. For all this, the company should
collect all required information about the positions available in the home country.
2. Physical Relocation – in this stage, arrangements are made for physical relocation of
expatriate. Personal belongings are removed, and re-entry training is given to expatriate
and his family about any social, cultural, political changes in home country, job
opportunities for spouse, analysis of host country experiences and psychological issues of
repatriation.
3. Transition – it is the stage, in which, the expatriate and his family readjust themselves to
return to home country. In this various activities are done again by the company like
arrangement of accommodation, making arrangements for housing and schooling, other
administrative activities like opening bank accounts, renewing driving license, etc.
4. Readjustment – in this stage, the expatriate adapts himself to home country culture, and
demands on the part of his job in home country. If there is much difference in host
country culture and home country culture, it would be difficult for expatriate to readjust
 to home country environment. If he had been more successful in host country culture, it
would be difficult for him to readjust back to work environment of home country.
3.4 Challenges of effective Repatriation or factors affecting effective repatriation
An effective repatriation means repatriation or coming back home for an expatriate with
much ease and lesser readjustments. The expatriate shouldn’t find it difficult to come back to
home. There are various factors which affect effective repatriation. These factors are divided
into three main categories:
• Organizational Factors
• Individual Factors
• Social- cultural Factors
1. Organizational Factors:
For an effective repatriation, every organisation must have a formal repatriation programme so
that expatriates can readjust themselves on returning to home country. However, due to lack of
required expertise, cost involved in repatriation programme, lack of support of top management
etc., organizations generally lack formal repatriation programmes. Some of organizations appoint
mentors, who are generally superiors to expatriates who maintain a regular contact with
expatriate and provides assistance and get information about expatriates’ interests in job
placements or promotions on returning home.
2. Individual Factors:

Ability of expatriate to readjust to work environment in home country as well as changing

conditions in social, cultural and economic environment of home country influence effective
repatriation. Career anxiety on the part of expatriate due to no post-assignment guarantee of
employment, changes in workplace of home country, coping with new role demands, loss of
status and pay in home work place, etc. may find difficult to repatriate.

3. Social-cultural factors:
An expatriate serving in foreign subsidiary in a high-profile position, having considerable high
interaction with social, economic and political leaders of host country, may feel disappointment
after returning to home country. Readjustment on the part of family members also influences
effective repatriation. Children may find difficult to readjust in schools due to lack of knowledge
about latest trends, or problems in readjusting themselves to home country educational system
etc.
3.5 Managing Repatriation
An effective and successful repatriation requires proper management in following fields:
a. Re-expatriation
 b. Repatriation Programme
c. Repatriation Strategies

a. Re-expatriation: successful expatriates may be considered for another country subsidiary

or branch. Following are advantages of re-expatriation to MNC:
1. The skills and abilities of expatriates can be used.
2. Successful expatriate can easily relocate to another place
3. Challenges of management of expatriation and repatriation are few.

b. Repatriation Programme: MNCs should frame repatriation programme. Generally

MNCs have their repatriation programme in the form of mentorship. Mentor is appointed,
who is generally, senior or superior to expatriate and knows him personally. The mentor
maintains regular contact with the expatriate throughout the entire assignment. The
difficulties or problems faced by expatriates are updated with mentor. The mentor also
assists the expatriate in repatriation process. He also provides up to date information
about the developments made in home country as well as in headquarter. In addition to
mentorship, MNCs also have repatriation programme which includes the three phases of
repatriation process as discussed in previous sections, i.e. preparation, physical relocation
and transition.
c. Repatriation Strategy:
Following strategies should be framed by MNCs at different stages of repatriation:

a. Pre-expatriation: agreement with expatriate explaining the position to be placed

upon repatriation, agreement about duration of foreign assignment.
b. During foreign assignment: regular contact with expatriate, visit to headquarter
during vacations to maintain visibility.
c. Preceding repatriation: career guidance to expatriate before 5-6 months before
the end of assignment by the mentor, regular update about changing conditions in
home country environment.
d. After repatriation: providing training and counseling to repatriates to adapt to
reverse culture shock, changing conditions of organisation culture and climate,
financial assistance etc.

4.Inpatriation

Inpatriate means an employee working in foreign subsidiary transferred to MNC’s headquarter in

home country. The transferred employees may include parent country nationals, host country
nationals or other/third country nationals. The PCNs may be transferred back to their home/parent
country due to various reasons like completion of foreign assignment, non-adjustment of employee or
his family with foreign environment, etc. The PCNs transferred back to headquarter is termed as
repatriation as discussed already. The HCNs and third country nationals may be transferred to
headquarters due to their better performance etc. In this case, the HCNs and TCNs become expatriates
in parent countries. Following are advantages of inpatriation:

1. Skill shortage at headquarter: to fill gap in skill shortage at headquarter, deserving

candidate with required skills and experience at host country subsidiary can be employed at
headquarter.
2. Useful Link between headquarter and subsidiary: inpatriates act as an important link
between headquarter and subsidiary. They facilitate transfer of information in both directions,
i.e. from host country to home country and vice-versa. Inpatriates have the full information
about the host country market conditions which is useful for making marketing strategies for
subsidiaries accordingly. They also provide information about the work culture and the
information about the employees working in subsidiary, which facilitate an effective
communication of headquarter with subsidiary employees.
3. Learn headquarter culture: inpatriates learn the organisation climate, culture, norms,
objectives and viewpoint of headquarter and use the information in subsidiary when they are
repatriated to the host country.
4. Development of global company: with employment of inpatriates at headquarters, the
management tries to form a global vision with involvement of international managers, having
knowledge about the culture and context of different countries.
5. Control over subsidiaries: headquarters can exert more informal or social control over
subsidiaries through the employment of inpatriates. As they have knowledge of both, i.e., the
headquarter as well as the subsidiary.
4.1 Difference between Inpatriates and expatriates:

Inpatriates and expatriates are different forms of foreign assignments. Both forms of foreign
assignments play a very important role in making a connection between headquarter and its
subsidiaries. Inpatriates play the role of expatriates in home country. Important points of
difference between the two are as follows:

1. Cultural adjustment challenges: Expatriates employed in subsidiaries need to adjust

only to the host country culture, while inpatriates need to adjust to both, the culture of
headquarters country and also corporate culture of headquarter. In fact, learning about and
socializing with the latter is one of the major motives for inpatriation, while expatriates in
most of the cases try to impose elements of the head office culture to subsidiaries.
 2. Status: inpatriates and expatriates also differ in status. Expatriates come from
headquarters and hence, possess a greater status level, while inpatriates come from
subsidiary and hence, may not be well accepted by the employees and managers
employed at headquarters. Sometimes, employees at headquarter see inpatriates as a
threat to their actual authority and become less cooperative with them.
3. Different staffing policies: inpatriation and expatriation reflect two different staffing
policies applied by MNCs. On one hand, cultural diversity of the headquarters’ staff
increases as inpatriates are transferred and integrated within them, hence, increasing the
tendency of the MNC to use a geocentric staffing policy. On the other hand, the
employment of expatriates results into ethnocentric orientation of the MNC as per their
staffing policies, as these managers coordinate their work with the staff at the head office.

5. Summary
Repatriation refers to coming back to home country of an expatriate after completion of an
international assignment. An expatriate can also be repatriated before the completion of
foreign assignment, due to failure to adjust to foreign climate and culture of foreign country.
Inpatriate refers to transfer of host country employee from subsidiary to headquarter at home
country. So in both, repatriation and inpatriation there is transfer from subsidiary to
headquarter, where in repatriation, transfer is of expatriate (parent country nationals), while
in inpatriate, the transfer is of host country or third country national.

Every MNC should have a regular repatriation policy so as to have successful repatriation.
The repatriated employee has to readjust himself as per the work environment of headquarter
as well as the climate and culture of home country. Hence, to remove reverse culture shock, a
proper repatriation policy is required. Generally, MNCs appoint mentors or senior persons to
expatriates who know them personally to have a regular contact with the expatriates
throughout the foreign assignment. To make repatriation effective, repatriation strategy
should be framed in advance. Before expatriate is sent for international assignment, the
agreement should contain details regarding tenure of international assignment, post to be
given after repatriation, etc.

Repatriation process has four stages: preparation, physical relocation, transition and
readjustment. At each stage, MNC should frame proper strategy.