Case Chap 7

Important tips on working for foreigners

First, most U.S. managers are taught to make fast decisions, but most foreign managers take more
time and view rapid decision making as unnecessary and sometimes bad.

Second, most Americans are taught to operate without much direction. In Latin countries, managers
are accustomed to giving a great deal of direction, and in East Asian firms, there is little structure and
direction.

Third, most Americans go home around 5 p.m. If there is more paperwork to do, they take it with
them. Japanese managers, in contrast, stay late at the office and often view those who leave early as
being lazy. Americans either must adapt or must convince the manager that they are working as hard
as their peers but in a different physical location.

Fourth, many international firms say that their official language is English. However, important
conversations are always carried out in the home country’s language, so it is important to learn that
language.

Fifth, many foreign MNCs make use of fear to motivate their people. This is particularly true in
manufacturing work. For instance, those who do not like to work under intense conditions would
have a very difficult time succeeding in Chinese auto assembly plants (Source: Martin J. Gannon).

1. Present some tips on working for foreigners. Which tip surprises you the most, why?

U.S.-style training for expats and their teenagers

One of the major reasons expatriates have trouble with overseas assignments is that their teenage
children are unable to adapt to the new culture. Many U.S. MNCs now are developing special
programs for helping teenagers assimilate into new cultures.

GEMS designates an individual for an overseas assignment, this expat and his or her family are
matched up with those who have recently returned from this country. If the family going overseas
has teenage children, the company will team them up with a family that had teenagers during its stay
abroad. Both groups then discuss the challenges and problems that must be faced. In the case of
teenagers, they are able to talk about their concerns with others who already have encountered
these issues, and the latter can provide important information regarding how to make friends, learn
the language, get around town, and turn the time abroad into a pleasant experience.

Coca-Cola uses a similar approach. As soon as someone is designated for an overseas assignment,
the company helps initiate cross-cultural discussions with experienced personnel. Coke also provides
formal training through the use of external cross-cultural consulting firms that are experienced in
working with all family members.

Before the departure of the family, some MNCs will subscribe to local magazines about teen
fashions, music, and other sports or social activities in the host country so that the children know
what to expect when they get there. Before the return of the family to the United States, these
MNCs provide similar information about what is going on in the United States so that when the
children return for a visit or come back to stay, they are able to quickly fit into their home-country
environment once again.
A major educational benefit of this emphasis on teenagers is that it leads to an experienced,
bicultural person. So, when the young person completes college and begins looking for work, the
parent’s MNC often is interested in this young adult as a future manager. The person has a working
knowledge of the MNC, speaks a second language, and has had overseas experience in a country
where the multinational does business. This type of logic is leading some U.S. MNCs to realize that
effective cross-cultural training can be of benefit for their workforces of tomorrow as well as today.
(Source: Dawn Anfuso).

1. List the characteristics of U.S.-style training for expats and their teenagers.

2. What is the potential benefit of this training for expats’ teenagers?

What happens when intel applies its reward systems to a newly acquired subsidiary?

Let’s examine a high-tech start-up in the Netherlands. A small Dutch high-tech firm was recently
acquired by US electronics giant Intel. Consistent with Dutch tradition, the small company had long
provided many of its middle managers with company cars to offset the country’s high tax rate on
personal incomes. In the eyes of its employees, this was part of their compensation package. To
many outsiders, however, the proliferation of new Mercedes and BMWs among the managers of the
small start-up seemed rather excessive. After the acquisition of

the company by Intel Corporation, Intel’s HRM executives sought to rescind the Dutch company’s car
policy, since it was far more generous than that of the parent company back in the United States.
Following a number of complaints and several key resignations, however, the parent-company policy
change was dropped. This example illustrates the conflicts and challenges faced by many of today’s
global managers. From their standpoint, the Intel executives were seeking equality in their employee
personnel policies across the two countries, but from the Dutch standpoint the company cars were
part of this equality, since their income tax rate on salaries is substantially higher than that for their
US counterparts. (Steers & Orland).

1. Should reward systems within a multinational company be the same across the globe or
tailored to each country or region? What is the lesson learned from this case?

2.