Dr. Abhishek Gupta
tract Global human resource management is a vital component of implementing global strategy and is increasingly being recognized as a major determinant of success or failure in international business. Alternate philosophies of managerial staffing abroad are the ethnocentric, polycentric, egocentric, and global approaches. The causes of expatriate failure include the following: poor selection based on inappropriate criteria, inadequate preparation before assignment, alienation from headquarters, inability of manager or family to adapt to local environment, inadequate compensation package, and poor programs for career support and repatriation. The three major areas critical to expatriate preparation are cultural training, language instruction, and familiarity with everyday matters. Common training techniques for potential expatriates include area studies, culture assimilators, language training, sensitivity training, and field experiences. Appropriate and attractive compensation packages must be designed by international human resource management (IHRM) staffs to sustain a competitive global management cadre. Compensation packages for host-country managers must be designed to fit the local culture and situation, as well as the firm's objectives.