WORK2217 essay
Kristianstad University p24
Cultural training enables expatriates to adjust faster to the new culture an expatriates will be more effective in their new roles (Dowling et al., 1994)
Lee, H.W. p404
Defining expatriate failure within the limits of premature return, as is done in most literature, is far too simplistic and misleading (Ashamalla 1998; Fukuda and Chu 1994; Naumann, 1992; Sieon and Fujiu, 2000).
Littrell & Salas p358
Early return rates have been estimated to be as high as 40% (Black & Mendenhall, 1990)
Kristianstad University p13
Expatriate failure also has a negative effect on individuals. He/she may lose self-conficence or honor; his/her later career development will be affected too. Sometimes an expatriate manager's family may suffer unecpected emotional damage (Dowling, Schuler & Welch, 1994).
Lee, H.W. p405
Expatriate failure rates at unacceptably high levels (Ashamalla and Crocitto, 1997; Gray, 1991; Naumann, 1993; Shaffer and Harrison, 1998; Shilling 1993; Simeon and Fujiu 2000; Stone 1991).
Lee, H.W. p403
Expatriation has been popularly used as means by which information sharing and knowledge transfers can be undertaken (Harzing and Van Ruysseveldt, 2003).
Lee, H.W. p405
Direct costs of expatriate failure range anywhere between $55,000 and $150,000 (Mendenhall, Dunbar and Oddou, 1987). More recent study: estimated cost of poor international staffing decisions had escalated to between $200,000 and $1.2 million (Ashamalla, 1998). These accounted for costs associated relocation, compensation and retraining of a replacement. The indirect costs are the most damaging and difficult to reverse in a short period of time (Ashamalla and Crocitto, 1997; Daniels and Insch 1998; Shilling 1993). These encompass negativities such as loss of product market share and business opportunities, discredited corporate image and reduced productivity.
Andreason p552
It has been found that the adjustment of the spouse is highly correlated with the adjustment of the expatriate and that the children tend to mirror their parents' reactions (Black & Stephens, 1989)
Kristianstad University p24
It is crucial to prepare an expatriate before taking up a post abroad. Human Resource Managers have to deal wit this issue of selecting the best training methods for a specific person.
Kristianstad University p1
It is necessary for Multinational Companies (MNCs) to take culture-orientation into consideration during the selection process. Otherwise, the expatriate who is perceived best qualified might lack ability to adapt to a new culture (Tung, 1982 cited by Hill, 2005). Training in culture takes place before, during and after the assignment in the field of working in the domestic culture and living in the host country (Mead, 2015).
Andreason p553
Kaimer, Wayne and Jaworski (2001) found that perceived organizational support was not only related to general and interactions adjustment but also to better performance on the job.
Puck, Kittler & Wright p2183
Kraimer, Wayne and Jaworski (2001) found strong support for the mediating role of adjustment between stressors and performance, thus strengthening the role of adjustment for an expatriate's success.
Kristianstad University p26
Language training should be included in every training program which prepares expatriates for a long stay abroad (Dowling et al., 1994)
Gupta, Banerjee and Gaur p7
Lauring and Selmar (2010) have recently conducted an ethnographic study to examine the positive influence of the spouse in expatriate assignments. This ethnographic stucy revealed that in manyt ways the spouses had a supportive influence on their partner's assignment pressures. Lauring and Selmar (2010) have suggested that the spouse may play a crucial role in expatriate success than failure. What is needed is acknowledgement of such positive influence by the parent organization. As was evident from the remarks of the Danish spouses in Lauring and Selmar's study, the management was less yielding towards the suggestions given by the spouses to improve the work-family balance of their partners.
Lee, H.W. p405
Many corporations still focus on the technical competencies required in the international assignment and overlook the significance of cross-cultural knowledge and the important function that the expatriate's family plays.
Gupta, Banerjee and Gaur p3
Organizations have ignored the spouses adjustment issues and the consequences of poor spouse adjustments on expat failure (Punnett, Crocker and Stevens, 1992; Bauer and Taylor, 2001; Shaffer and Harrison, 2001; Lauring and Selmar, 2010; Cole, 2011).
Kristianstad University p.11
In order to staff their subsidiaries, the MNCs can use three staffing approaches: ethnocentric, pollycentric and geocentric approach. The expatriates are used both in ethnocentric approach and geocentric approach (Wild, WIld & Han, 2000).
Kristianstad University p23
In practice, companies often use technical competence and motivation as their main selection criteria (Swaak, 1995), overlooking other culture-related factors (Dowling et al., 1999; Chew, 2004). Researchers deem that most MNCs are not using the selection criteria as recommended (Mendenhall et al., 1995; Dowling et al., 1999).
Kristianstad University p2
" An ill-prepared" individual may inadvertently offend or alienate a foreign host and perhaps jeopardize existing long-term relations with a host country" (Earley, 1987 p.686).
Kristianstad University p11
(Dowling, Schuler and Welch, 1999) ethnocentric approach means that subsidiaries abroad are managed by expatriates from the home coutnry; geocentric approach is used when MNCs choose the best qualified employees to lead subsidiaries abroad irrespective of nationality (Wild et al., 2000).
Kristianstad University p16
A variety of selection criteria should be used when selecting expatriates for assignments, such as technical ability, cross-cultural suitability, family requirements, language (Tung, 1987 cited by Dowlign et al., 1994; Mendenhall et al., 1995).
Lee, H.W. p403
As the world continues to globalize, firms are required to manage an increasingly diverse workforce with expatriation being just a subset of this challenge (Deresky, 2000)
Lee, H.W. p404
Aspects such as not achieving performance objectives, repatriation difficulties and more specifically, undervaluding the skills and knowledge of repatriates, are just as important in defining expatriate success and failure.
Kristianstad University p26
Practical training: foreign executives and their families encounter environmental differences that are even more difficult to adjust than on -the-job differences (Robock & Simmonds, 1989). Approaches to ease problems such as clothing, housing, transport, shopoping will help expatriates concentrate on their work (Brewster, 1995). Another good way to integrate new expatriates and their families, is to arrange meeting with expatriates' families on site to share information, experience and give the feeling of not being alone (Dowling et al. 1994).
Swaak, R. A. (2016). Expatriate Failures. Compensation & Benefits Review, 27(6), 47 - 55. https://doi.org/10.1177/088636879502700609
Reasons for Expatriate Failure Given the high costs of a failed assignment, multinational firms need a much better understanding of what leads to faulty staffing decisions. Respondents to the NFTC/SRI study attributed failures to these reasons: 81 % said an urgent need to fill an overseas position may lead to the selection of the "best available candidate" 33% cited a tendency to send someone who has been with the company for many years and is considered to be a &dquo;known entity&dquo; but not necessarily a &dquo;star performer.&dquo; 21 % said line management overrides the advice of human resources. 12% said the assignments are used as rewards for accomplishments having little to do with the requirements of a new position. o 10% attributed failures to untrained interviewers or a lack of know-how about local conditions. "The New International Executive," a Harvard University report sponsored by AMROP International, also offers insight into the reasons for failed foreign assignments. Among those cited: The executive's and/or spouse's inability to adapt to a different environment. An inability to cope with the greater responsibilities of overseas work and limited spousal employment opportunities. A lack of technical competence and motivation. In this survey, 80% of respondents also said the executive's inability to adjust to a foreign cultural environment was a key reason for failure in an international post.
Lee, H.W. p403
Recognition on the part of those in charge that there are more appropriate measures of expatriate failure - than simply premature return - may change the way the reasons for expatriate failure are perceived.
Kristianstad University p1
Selection and training in the global context of human resource management are often done informally, with little regard to findings in the research literature (Mendenhall, Punnet & Ricks, 1995).
Gupta, Banerjee and Gaur p5
Shaffer and his colleagues (1999) divided the spouse adjustment dimension into personal factors, social factors and environmental factors. Among these, they discussed the concepts like cultural novelty, living conditions, certainty of assignment duration, language proficiency, employment status, self-efficacy, family and host country social network resources as possible factors influencing the spouse adjustment process.
Kristianstad University p16
Some researchers state that the defects in the selection process will cause expatriate failure (Dowling et al., 1999; Harvey & Novicevic, 2001).
Gupta, Banerjee and Gaur p6
Spouse' personality: a key factor in the adjustment process Big five
Andreason p552
Spouses are often without adequate language skills or cultural training; and without adequate socail support programs to assist her or him in developing an acceptable lifestyle overseas (Adler, 1997)
Kristianstad University p14
The U-Curve of Cross-Cultural Adjustment
Lee, H.W. p406
The ability to adjust to the foreign environment is equally as important as technical competencies is supported by Yavas and Bodur's (1999) study, where it was found that relational capabilities were just as essential for expatriate success, as it directly supports the adjustment dimension. More specifically, they identified the following personal characteristics as ideal for an expatriate to possess: (1) being a culturally sensitive person; (2) having enmpathy for others; (3) willing to accept the challenge of intercultural experiences; and (4) being culturally prepared for the assignment.
Gupta, Banerjee and Gaur p4
The importance of spouse support in the adjustment of married expatriates has started receiving importance from researchers in recent times (Huckerby and Toulson, 2001; Shaffer et al., 2001; Konopaskie et al., 2005).
Lee, H.W. p404
The main flaw within this definition is that it implies that the expatriate assignment has been successful if the expatriate remains for the full duratoin of the planned stay. This does not occur in reality (Sappinen, 1993).
Lee, H.W. p403
The most significant research donducted on expatriate failure by Tung (1982),was carried out over two decades ago; questions of applicability arise as variables in the internal and external environment have changed since the 1980s.
Lee, H.W. p403
The role of the home company has increased as a contributor toward expatriate failure.
Gupta, Banerjee and Gaur p4
The spouses, especially those who cannot get a job in the host country have to spend mor time alone or with the host country neighbours in most cases (Punnett, 1997).
Gupta, Banerjee and Gaur p4
The view that the trailing spouse should be given separate training to adjust to the foreign conditions has also been supported by other researchers (Caligiuri et al. 1998; Mendenhall and Stahl 2000; Vo¨gel et al. 2008). Adler (2002) emphasized about creating a meaningful life for the spouses in the new and strange host country environment. The spouses and children are faced with the challenge of resettling in an unknown world surrounded by people of different customs and cultures. Often language barrier with the host country may create hindrance in creating friendship with the natives (Solomon 2000; Shaffer et al. 2001). For the spouses, especially who had to quit their work to accompany their partners, getting a job of their preference may not materialize all the time (Solomon 2000; Adler 2002). To address this growing concern for spousal assistance during expatriate assignments, some organizations have started providing customized training to the spouses in the form of language and cultural training, pre-assignment visits to foreign lands and assigning support groups with the spouses to help them get involved in some productive activities (Punnett et al. 1992; Punnett 1997). Punnett (1997) stated that the expatriate adjustment was a function of the stage of expatriate life cycle the spouse was in. There are four stages in expatriate life cycle - the pre-assignment stage, the early assignment stage, the late assignment stage and the post-assignment stage. Punnett suggested specific training and orientations for each stage for the spouses to help facilitate the overall transition processes through the expatriate assignments to make the experience interesting and productive for the spouses. Unfortunately, despite some efforts to understand spouse adjustment issues by researchers in recent times as well as implementation of some mechanism to resolve such issues, the majority of organizations still are ignorant about the importance of such issues and are reluctant to develop effective spouse adjustment strategies (Punnett 1997).
Kristianstad University p.12
Tung (1982, cited by Hill, 2005) found the major reasons for expatriate failure are the inability of a manager to adjust, the ability of a apouse to adjust, the other family problems. These factors are also confirmed by other studies (Swaak, 1995; Chew, 2004).
Kristianstad University p16-18
Tung (1987 cited by Dowlig et al., 1994) identifies four general categoris of selection criteria. They can be seen as useful predictors of expatriate success (Chew, 2004). * Technical competence on the job * Personal Characteristics * Environmental variables * Family situation
Lee, H.W. p406
Tung (1987) suggests that when companies select potential candidates for expatriate assignments, there is an overemphasis on technical competence to the disregard of other important attributes such as relational abilities.
Lee, H.W. p406
Tung's (1987) main reasons for expatriate failure: 1) Inability of managers to adjust to new environment 2) The managers inability to adapt to the new enrionment 3) Other family related issues 4) The managers personality or emotional immaturity 5) The managers inability to cope with responsibilities associated with the overseas work
Kristianstad University p2
U.S. businesses lost 2 billion USD per year due to failed foreign assignments (Sandhu, 2002, p.240).
Littrell & Salas p358
When expatriate employees embark on their foreign assignments, they are confronted with many difficulties, ranging from problems resulting from inadequate transfer of managerial practices (Rahim, 1983) to issues concerning adjustment to the foreign culture (Caligiuri et al., 2001). The many stressors associated with these difficulties often result in the expatriate deciding to leave the host country before the conclusion of his or her assignment.
Kristianstad University p18-19
[Selection] Mendenhall and Oddou's Dimension Framework (Mendenhall & Oddou, 1985 cited by Dowling et al., 1999, p.93) * The Self-Oriented Dimension * The Perceptual Dimension * The Others-Oriented Dimension * The Cultural-Toughness Dimension
Kristianstad University p19-23
[Selection] Ronen's Model (1989 cited by Dowling et al., 1994) is based on Tung * Job factors * Relational Dimensions * Motivational state * Family situation * Language skills Ronen's model is the latest and interated one to guide MNCs to select the best qualified candidates. It incorporates five kinds of predictors for a successful international assignment.