Introduction
This essay discusses the key issues and challenge that expatriate from Australia head office might face in France where he is assigned duties in France. Tenore Presentium Solutions (TPS) is a multinational company based in Sydney. It provides engineering solutions and services to large infrastructure projects. Head office planned to send head office manager to France due to manage a development project in Paris. It is 3 years assignment, the appointed manager has wife who is professional accountant and three children aged 18 months, 6 years and 14 years old.
There are three main issues arise in this case which are cross-cultural management which is pre departure plan, performance management while manager is in France and repatriation management when the assignment is finished. The discussion starts with cross-cultural issues: language barrier, religion and family requirements followed by training plans before departure.
Training will be not only for the manager but also for the wife, it is very important for her to enjoy herself and children in France while her husband will be busy working. In this part, discuss about the school for children who are 6 and 14 years old. Secondly, how CEO should implement while the manager is in France.
For instance, monitor his performances, use sufficient strategies that will help him to be comfortable in different environment. The techniques how manager communicate with line managers and co-workers including the communication method from France to Australia to be effective and easy to access.
Thirdly, when manager comes back after 3 years how TPS will arrange for repatriation. To manage re-entry stress because he was away from home country for 3 years and need to adjust to fit in to home country society.
Human resource department should plan for repatriation program which is necessary to welcome the manager back. It is crucial whether the manger will be assigned to next expatriation or be promoted to senior level in the head office. Each part is accompanied by recommendations to make the program easy and explore with different ideas.
Cross-cultural issue and the implication over the expatriate and his family
Nowadays, a lot of expatriates who live overseas experience culture shock, due to relocating to a new environment which is stressful for the expatriate and/or his family. Armitage and Powel (1997) define culture shock as a “gap between the familiar, which has been left behind, and the new being perceived for the first time, and has been applied to the processes of gradual adjustment to foreign ways” (p. 9).
There are more chances to experience “culture shock” when the host country has a really different culture, religion and legislation. The effects on expatriate can be: losing self-confidence and not knowing how they conduct themselves.
Caligiuri and Lazarova (2001) identify four stages in the process of acculturation: first stage-honeymoon (it lasts not more than two months and the expatriate is excited about the new experience), second stage-culture shock (lacks of understanding of the new culture on a daily routine, making him feel depressed), third stage-adaptation (gradually understanding the new culture and adjustment to the new life-style) and fourth- mastery stage (no more anxiety, the new location is just like home).
In Australia, surveys reported that 90% of organisations provide just some form of training for future expatriates, which is often incomplete or irrelevant, increasing in this way the culture shock for expatriate and his family (Hisco, 1987). In our case, expatriate and family can experience some problems of adaptation in France, due to the strong French culture, more vivid life-style and distance from home.
Organisational culture is characterised by different attitudes, values and behaviours of the employees within the organisation, differentiating them from other international organisations. The culture of organisation has more elements and can be perceived in different ways.
According to Hofstede (1993), company’s values represent their priorities and principles in achieving goals and they are considered as an invisible side of organisational culture.
In contrast, organisational practices are the visible side of an organisation culture, represented by for example monthly meeting, work group socialising and permanently checking e-mail (Hofstede, 2001).They are influenced by the internal and external environment of the company. In this way the culture of TPS, has a strong impact on the success of the international assignment.
Hofstede (1993) who examined differences between cultures found four dimensions: powered distance, individualism, masculinity, uncertainty avoidance and after was added the fifth dimension which talks about long-term versus short-term orientation. Other writers, such as Lewis (2012) found the differences which affect communication in different cultures: language usage, religion, behaviour standard and decision making.
Some relevant examples are: in religion case, a Christian and a Muslim have completely different believe and for decision making, what is normal in one culture for someone might be misunderstood by another. Referring to religion, in our case, most of the people living in France are Catholics, followed by a high percentage of Atheists and Muslims, making a little bit harder for an expatriate to adapt in France, from religious point of view.
In many examples, language skills are highly regarded and are considered as an important aspect of expatriate performance, it is linked with the cross-culture ability. Therefore, knowing the local language represents a plus for any person who is sent to an international assignment (Dowling, Festing & Engle, 2013).
In our case, the host country is France, where the national language is French, which is different language from English, but with some similarities. The tradition and history of the country requests a high level of fluency for foreigners to be accepted as native French speakers (Wiese, 2009).
Lack of a competent foreign language has also an impact over the expatriate’s ability to monitor and process any vital information for the organisation. Due to the fact that our expatriate has a wife and children, is relevant to mention here their adaptation in France is closely linked to speaking at least an intermediate French and knowing a little bit more about the country’s culture.
Family requirements are in dependent relationship with the culture shock, though there are a lot of companies which do not give enough importance to the wife and children, even though many researches state how crucial that is for the success of the international assignments. In a research is shown that between 20 to 30 percent of failure cases are due to the fact that partner cannot adapt to the new country (Tung, 1979).
According to a study by McNulty (2012), in which more wives were surveyed over a four year period, it was found that two types of support is needed: first, social support for marital stress and second, professional support for the dual-career couples, which applies our case as well, both of them having a career. In another study was found that divorce rate for expatriates were reported by approximately 70 percent, being the most important reason why relocations fail (Lazarova & McNulty & Semeniuk, 2015).
In our case, the expatriate wife is a professional, working in accounting firm which we assume she wants to continue even though she is moving in a different country, thing that would not create much comfort for her, due to a new culture, language, but also different organisational culture. The children need to continue their studies, by adapting and attending classes at school or high-school, where they can make new friends, even though they are moving away just for 3 years.
Recommendations
First of all, the most important part for an expatriate and his family are pre-departure training and understanding how sensitive is the local culture of the host country, France. It is very true that all these are expensive, but the failure of the assignment it will cost more than training.
Pre-departure cross-cultural training is vital and has to be done from time, including these elements: cultural awareness and language training, preliminary visits, security briefings and training for the new role (Dowling, Festing & Engle, 2013). In addition, assigning a mentor prior departure is a great idea and is discussed more about this aspect in the recommendations for repatriation process.
In our case, France’s culture has an extended degree of similarities with Australia, but for an international assignment of 3 years, we would suggest that TPS needs to provide information to him and family about: the history of the country, culture’s values, religion, political structure and other practical matters like currency, schools, houses, business hours and transportation.
The GDP at purchasing power per capita in France shows a high living standard, similar with the one in Australia and also the fact that the organisation can offer private health insurance included in the compensation package in a foreign country can improve the life-style for expatriate and his family (Selmer, Lauring & Kittler, 2013).
Performance Management
As the organization extends, it faces a range of issues that have to be solved immediately in order to maintain decent performance. It is the advantage of TPS which is already familiar with the global business operations, but it should be considered that each case of expatriation is unique and cannot be treated in the same manner.
The experience that is already obtained by the organization allows evaluating the current situation and defining the gaps and possible problems that might be faced when the head-office manager will be sent to France. To be sure that the individual and the company are prepared for this assignment, and the ways to maintain proper performance management are defined, the peculiarities of executive, line and HR management will be discussed.
As the manager is to get a senior operational role, one is to reach the pre-set goals. TPS is to design a plan, according to which he will be able to conduct the actions needed to accomplish the tasks within the framework of three years period successfully. The company is to assess the work from the local area. The manager has to know all his duties and understand what is to be done every day not to be confused and fail.
The task of the CEO is to provide him with precise tasks and evaluate the performance (Sharpley, 2012). The executives are to realize that the assignments needed to reach one and the same target in France and America may differ due to the mentality. That is why it is crucial that they deepen into it, as the manager will have personnel management responsibilities.
To direct the operation, the CEO needs to implement sufficient policy and strategy (Berghe, 2012). So the decision of which strategy of international performance management to utilize depends on this person. There are three basic strategies:
- “Exportative strategy – develop the PM system in the home country and transfer it to foreign units;
- Adaptive strategy – develop unique PM and practices in each foreign unit;
- Integrative strategy – combine local PM practices with those within the region and around the world” (Briscoe, Schuler, & Tarique, 2012, p. 348).
As the manager is going to France, where the population is rather diverse, it will be more useful to utilize the integrative strategy, which combines the elements from all over the world. In this way, the implementation will be easier to manage. The employee who will be expatriated is likely to feel fewer difficulties while managing his activities, as he is already familiar with the local practices and the rest of his co-workers in the region.
To oversee the foreign operation, the CEO is to gain the reports that reflect the work of the manager and the whole department. It is vital to receive the information rather often. The reports are to be presented each month. In this way, the CEO will be sure that the time is not wasted, the manager copes with his duties, and the company works effectively. In a case of some issues noted by the CEO or reported by the employee, the executive management team will implement changes so that no or minor losses will be experienced. If the problem occurs because of the HRM Department, the CEO will address it to them and give some time to find the way out.
As the line manager is a person responsible for the activities conducted to achieve high performance regarding the particular line of services, one is to make sure that the employee will be able to cope with them. As one supervises and mentors the team, which includes this professional, they are to get prepared for the new kind of communication (Rims, Veres, Jackson, & Facteau, 2001).
To get ready for the expatriate of the worker, the line manager is to define the best ways of maintaining the activities they undertake within the local framework. This person is to provide training to enhance the skills and knowledge of the individual (Nejati, Nejati, & Shafaei, 2008). In needed, such activities are to be conducted when the employee moves, so online communication is to be considered (Fields, 2008).
IHR management is the department that is to be concerned about the employee’s expatriation even more than others. First of all, it is because they need to pay attention to numerous factors inside and outside the company (Dowling, Festing, & Engle, 2008). As the HR managers select the personnel, they are responsible for the employee’s ability not only to cope with the duties but also with the alteration of the working and living environment.
Recommendation
Before the manager leaves to France, one is to get needed training and education. The HR managers should design the plan to provide the employee with the most important information regarding the culture of French people, their typical views, values, and behaviors. It is crucial that the worker can adapt to them but not reject. Moreover, the language is to be trained. It is of advantage if the manager already knows French, but if not, one is to be taught to be able to cooperate with the new people.
Accompanied status is also to be considered, as family problems are likely to reflect on the performance of this individual. As his wife is already professional, she may be reluctant to move. Having three children, the manager will not want to leave them. The solution of this issue is to be offered by the IHR management team. As one child is 18 months old, the manger’s wife might prefer to take care of him/her instead of working.
Due to the fact that he gains a more senior, the family is likely to have enough money. Still, as other children attend school, and the wife may disagree to leave the home country, the manager is to be provided with the opportunity to visit the family once or several times a month. The possibility of online communication is also to be considered. The manager is to be explained all advantages can gain while working in another country.
The HR management should also take care of the expatriate compensation and appraisal. Thus, they need to collect performance appraisal data regarding particular goals. The data can be collected within different periods of time (Sengupta, 2007). As the company has already faced problems with the employee’s expatriation, it is better to refer to the short cycles (each week/month).
After evaluating the work of the employee, the HR managers are to provide the feedback, for him to know what is expected and whether he meets the expectations. Due to the geographical distance, it is better to use reports and interviews. On the basis of the results, the manager is to be motivated and rewarded.
Repatriation
Repatriation is the return to home country of an expatriate on completion of an overseas assignment (Stone, 2014). It is considered as the expatriation process final stage but the manner in which it is handled determines whether the MNE will attract future expatriates or not (Dowling et al. 2013).
Several scholars have argued that the return home can be just as difficult as the foreign entry or even more challenging (Bailey & Dragoni, 2013). Expatriates and their families are affected by re-entry stress and more than 60% experience reverse culture shock which ideally should be managed by re-entry orientations provided by organisations, but studies show that over 80% of families do not receive re-entry orientation (Stone, 2014).
Mismanaging the repatriation process can be very costly to the organisation in terms of wasted time and money and human capital (Bailey & Dragoni, 2013), as Global Relocation Services surveys show that in 2011, 28% left within one year after returning, 24% left between the first and second year and 26% after two years of returning from overseas assignment (Dowling et al. 2013).
According to Dowling et al. (2013), repatriation process consists of three phases with the first phase before the global assignment where MNEs assign home mentors who will be responsible for keeping in touch with the expatriate and updating the expatriate on changes happening in the home country. They further state that they can use web and media contacts or firm websites to facilitate the communication process.
The expatriate will be thus kept in touch with any changes in the home country while on assignment and this gives the expatriate clear realistic expectations and helps reduce culture shock when the expatriate returns (Dowling et al. 2013).
The second phase occurs during the assignment where the expatriate can be allowed periodic returns to home country to enable them to reconnect with firm employees, family and friends and catch up with any changes in the business, political or economic conditions in the home country (Dowling et al. 2013).
Also work related information exchanges can be organised during the assignment, where a lot of information about the changes in home personnel, power politics, and strategic developments is passed to the expatriate to help reduce shock and stress upon return (Dowling et al. 2013).
Lastly the third phase happens when the expatriate enters the home country and assisted with housing and schools for children, assigned office space and given orientation on the new job. Further, the expatriate must reconnect with local social networks and also personal and career dynamics need to be adjusted (Dowling et al. 2013).
The same scholarly argument is seen in Scelba (1996) where she argues that the repatriation process involve the three stages mentioned in Dowling et al. (2013). However, some scholars like Solomon (2002) argue that the process consists of two phases, i.e. pre-departure and re-entry phases only.
These scholars do not mention the phase that occurs during the assignment which is also important in keeping the expatriate updated with home country developments and changes, equipping them with realistic expectations upon their return thereby facilitating re-adjustment.
Several factors contribute to the expatriate’s re-entry adjustment and Dowling et al. (2013) identified these factors as job-related and social factors. Job-related factors include career anxiety due to loss of visibility and isolation, no post assignment job guarantee and work place changes. Another job related factor is work adjustment which includes re-entry position, employment relationship and devaluing of overseas experience (Dowling et al.2013).
Coping with the demands of the new role and loss of status and pay are additional job-related factors that influence a repatriate’s readjustment (Dowling et al. 2013). Social factors encompass family adjustment, social networks and the effect on the partner’s career (Dowling et al. 2013).
Sanchez Vidal, Sanz Valle, Barba Aragon, Brewster (2006) states the factors that influence re-adjustment are loss of status, loss of autonomy, loss of career direction, loss of income and lifestyle, family readjustment problems and a feeling that international experience is undervalued by the company.
This view was also supported by Inkson, Pringle, Arthur & Barry (1997). Black, Gregersen & Mendenhall (1992a) proposed a basis framework of repatriation adjustment as being divided into two parts, i.e. pre-return adjustment and post return adjustment. The pre-return adjustment covers factors that influence repatriation adjustment before expatriates return to their home country and post return includes factors affecting adjustment after they return home (Black et al., 1992a).
Both Black et al (1992a) and Dowling et al. (2013) factors are almost similar in terms of job related and social factors but Black has additional factors like individual variables which are not mentioned in Dowling et al. (2013) which we think are also important, but they can only be determined during the recruitment and selection process. Failure of a repatriate to adjust will lead to poor work performance and may result in turnover which will be very costly to the organisation.
In this case, the above mentioned problems that come with repatriation can be experienced by the potential expatriate identified by TPS. For example, upon successful completion of the 3-year overseas assignment in France, failure to recognise the experience he gained overseas and failure to guarantee him a job after the assignment may cause reverse culture shock.
Also if there is no knowledge transfer and there are major changes in the work place, he may experience isolation which can be very stressful and can lead to turnover. In addition, his professional wife may find it difficult to get a job upon return and his school going children may find it difficult to readjust to the home country school as they will be enrolled at international private school in France. This will cause stress which may affect his performance and may lead to turnover.
Recommendations
To avoid losing this potential repatriate upon his return from France, all TPS managers have to ensure that a proper and adhered to repatriation program is in place (Dowling et al., 2013). The HR manager should be responsible of making sure that all key employees are aware of the repatriation programme and make sure that it works.
The repatriation programme should include the following:
Pre-departure
Mentor
A mentor should be assigned before the potential expatriate’s departure. This should be someone who currently has a senior position and who also personally knows the potential expatriate.
The responsibilities of the mentor should include maintaining contact with the expatriate throughout the assignment, keeps the expatriate up to date with developments in the home country, ensure that the expatriate is retained in management development programmes, assists in all stages of the repatriation process including assistance in obtaining a repatriation position (Dowling et al., 2013).
Black et al (1992a) also agrees to the need of a mentor and states that this will help repatriate to adjust with home country people upon his return. The HR manager should manage the mentoring in case the appointed mentor retires or leaves the firm, another mentor will be assigned. HR manager and the potential expatriate’s department head should conduct pre-departure career planning discussions with the expatriate and identify a career opportunity for the expatriate and also discuss the expatriate’s career expectations.
Communication
Continuous interaction and information exchange between home country and the foreign operation is vital to enable coordination between the two companies. Communication channels have to be agreed i.e. via company web-sites or emails and contacts exchanged before departure. Black et al (1992a) and Dowling et al. (2013) both agree to this. This will enable the smooth progress of adjustment (Black et al. 1992a) and eliminates stress due to isolation feelings that may affect repatriation adjustment.
Documentation of next planned assignments and job position
TPS HR manager should ensure the next planned assignment details are put in writing together with the senior management position upon completion of second assignment. This will help motivate the potential expatriate into accepting assignment without fear of losing job after repatriation.
During assignment
Reorientation programs / Training
Reorientation programs can be organised to provide briefings on strategy changes, changes in policies and in the organisation (Dowling et al., 2013). Black et al. (1992a) also proved the effectiveness of pre-return training because when expatriates may feel foreign when entering the home country. This will contribute positively to the readjustment after repatriation.
Performance reviews
Performance reviews can be conducted by host country managers because of the geographical distance but feedback can be sent to the HR manager who is responsible for monitoring expatriate’s performance (Scelba, 1996).
This enables to close the isolation gap of distance and also to identify areas where expatriate needs assistance so as to increase his performance. Good performance during assignment will contribute to expatriate’s attitude when he comes back as he will be confident and proud of his achievements thereby positively contributing to the readjustment.
Visit to home country
TPS should organise home visits during the assignment. Two home visits can be useful during the first three-year assignment. This enables the expatriate and his family to acquire information about work related changes, social and general home country changes which will help minimise reverse culture shock upon return (Black et al. 1992). Visits also enable colleagues and friends to notice if there are any changes in the expatriate (Black & Gregersen, 1999) as cited in (Andersson & Hedaripour, 2006) and the necessary support can be given if necessary.
Post entry
Clear job description and role clarity
Clear job description and high role clarity is very important in repatriation adjustment (Black et al. 1992). TPS HR manager should ensure that the expatriate does not feel the new role is a demotion since in the overseas assignment he will be holding a senior decision making position. The skills gained from the international assignment should be put into use effectively so that the expatriate does not feel as their international management skills and knowledge is wasted (Anderson & Heidaripour, 2006). Bailey & Dragoni (2013) share the same view.
Facilitate Knowledge transfer
TPS should give the returned expatriate an opportunity to share their international experience with colleagues through forums or luncheons. The employees will share newly gained knowledge and skills and at the same time other employees will be encouraged to take overseas assignments (Bailey & Dragoni, 2013). Importance of knowledge transfer is also supported by Lazarova & Tarique, (2005).
Personalised reorientation and financial and tax advice
Personalised reorientation should be provided to the repatriate and his family to help them deal with issues of social readjustment, schools, and lifestyle changes.
Personalised financial and tax advice is also necessary upon return and TPS can provide the repatriate with benefits such as short-term loans (Dowling et al. 2013), to help reduce the pay difference gap which may be stressful. Black et.al. (1992a) also agrees to this and further states that firms need to pay special attention to financial compensation packages after expatriates return to home country.
Provision of adjustment period
TPS can also allow an adjustment period of six to eight weeks upon return to avoid frustration from new job related pressure.
Career assistance
TPS should also organise career assistance for the expatriate’s spouse with an outside vendor to support the spouse’s career continuity (Scelba, 1996). This includes resume writing assistance, career counselling and job search information. Anderson & Heidaripour (2006) also support this view. Since the expatriate’s wife is a professional Accountant, she would have given up her job to follow the expatriate and when she comes back she might have problems finding a new job and this may affect the smooth flow of the repatriation process.
Recommendations
In order to overcome the cross-cultural challenge, there is need to incorporate proactive cultural training for the expert and his family to ensure that the integration process in France is smooth. The training should capture vital elements such as basic language, communication signs and gestures, and unique norms associated with living in France.
In terms of performance management, there is need to integrate the adaptive, integrative, and exportative strategies to ensure that the expatriate does not face impediments that might reduce his performance. This may be achieved through offering relevant training to include accompaniment status, appraisal, and how to adopt in the France environment.
In order to ensure that the repatriation process is smooth after completing assignments in France, the expatriate should be subjected to three stages of continuous updates to keep in touch with the home county. This is achieved through appointing an agent to carry out frequent but periodic briefing with the expatriate. The three stages involve facilitating relocation to foreign country, passing day to day information on events at home country, and facilitating relocating to the home country after completing of assignment.
Conclusion
This essay discussed the key issues and challenge that expatriate of the Tenore Presentium Solutions (TPS) from Australia head office might face in France where he is assigned duties in the host country. The main issues identified are cross cultural challenges, performance management, and repatriation from France environment.
In terms of the cross-cultural issue, it was established that expatriates with cross-cultural training have greater job satisfaction and than those without, especially when relocating to a country with a dynamic culture. In terms of performance management, the main challenges identified are inability or inadequacy in proper guidance on different job related ethics that are unique to France.
Besides, unclear briefing how to adopt to life in France, integrate within the work force, and apply expert skills without conflict may impede performance management for an Australian expert relocating to France. The process of repatriation should be dynamic and continuous to ensure that an expert is not overwhelmed by changes at home country upon return after completing duties in the foreign land.
In the ideal, the repatriation processes should be a continuous process which begins when an expert relocates to a foreign country by ensuring that he or she is briefed on what is happening in home country. To avoid losing a potential repatriate upon his return from France, all TPS managers have to ensure that they adhered to repatriation program in place.
Any repatriation program should incorporate pre-departure preparations such as mentorship, proactive communication, and proper documentation of assignments and guidelines of the job to be done in France. In order to ensure that repatriation process is smooth and effective, there is need to adopt a re-orientation plan, provide enough time for re-adjustment, and assist the expert’s spouse to locate job placement to ensure that he or she does not suspend his or her career.
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