UNIVERSITY OF VAASA FACULTY OF BUSINESS STUDIES DEPARTMENT OF MANAGEMENT Uddin Waqar (Q89549) CROSS-CULTURAL CHALLENGES TO EXPATRIATES IN FINLAND Master’s Thesis International Business VAASA 2011 1TABLE OF CONTENTS Page LIST OF TABLES AND FIGURES……………………………….…9 ABSTRACT……...................................................................................11 1. INTRODUCTION…………….……….…….………....….13 1.1. Background of the Study..................................................................................13 1.2. Research Objective…………………………………….…………….……….20 1.3. Research Questions...........................................................................................21 1.4. Structure of the Study.......................................................................................22 2. LITERATURE REVIEW………………………………....23 2.1. Introduction…………………………………………………………….…....23 2.2. Expatriate Management ………………………….……………………….....25 2.3. Expatriate Success and Failure……………………………………………....32 2.4. Expatriate Adjustment…………………………………………………….....37 2.5. Factors Affecting Expatriate’s Adjustment………………………………….39 2.5.1. Individual Factors………………………………………….………….....40 2.5.2. Organizational Factors …………………………………….………........ 42 2.5.3. Cross-culture Factors……....……………………………….……………45 2.5.4. Job Factors…………………………………………..................................49 2 32.6. Cross-cultural Adjustment……………………………………………………52 2.7. Factors Affecting Cross- cultural Adjustment………………………………..53 2.7.1. Individual Factors…………………………………………………….......53 2.7.2. Work Place Factors………………………………………………….........54 2.7.3. Organizational Factors…………………………………………................55 2.7.4. Non-Work Factors…………………………………………………..........57 2.8. Job Adjustment…………………………………………………….………...62 2.9. Factors Affecting job Adjustment……………………………………….…...63 2.10. Summary………………………………………………………….…….......67 3. METHODOLOGY………………………….………….…..69 3.1. Introduction…………………………………………………………….….......69 3.2. Research Strategy………………………………………………………….......69 3.3. Research Approach ……………………………………………………….......71 3.4. Data Collection……..........................................................................................72 3.5. Interview Structure…………………………………………………………....74 3.6. Analysis of Data……………………………………………………….……...75 3.7. Reliability and Validity……………………………………….….…………...77 4 54. FINDINGS………………………………………………....79 4.1. Introduction…………………………………………………..........79 4.2. Factors Affecting Cross-cultural Adjustment and Job Adjustment….…….....79 4.2.1. Individual Factors……………………….………………………………...79 4.2.2. Organizational Factors ……………………………………………….…...86 4.2.3. Non-work Factors………………………………………………………....91 4.2.4. Job Factors………………………………………………………………...97 5. DISCUSSION……………………………………………....100 5.1. Overview………………….…………………………………………………..100 5.2. Factors Affecting Cross-cultural Adjustment and Job Adjustment……….......101 5.2.1. Individual Factors………………………….…………………….………..101 5.2.2. Organizational Factors………………………………………………........105 5.2.3. Non-work Factors………………………………………………….......…107 5.2.4. Job Factors……………………………………………………………......109 6. CONCLUSIONS AND IMPLICATIONS…………….....111 6.1. Conclusions …………………………………………….…......…111 6.2. Theoretical Implications for Expatriate Success............................114 6.3. Practical Implications of Research Findings……………………..116 6 7 6.4. Limitations of the study……………………………………….....117 6.5. Recommendations for future study……………………………....119 6.6. Concluding words……………………………………………......120 REFERENCES……………………………………………………..…122 APPENDIX…………………………………………………………....137 8 9LIST OF TABLES AND FIGURES TABLES Table1. Background Information’s of the Interviews Respondent………….…...73 Table2. Organizational support in host country ……………………………….....90 Table3. Affect of Spouse Adjustment………………………………………….…95 Table4. Affect of Family Adjustment………………………………………….…96 Table5. Different between home and host country job position….….….…….….99 FIGURES Figure1. A Model of Culture Shock Theory……………………….…………….47 Figure2. Factors Affecting Cross-cultural adjustment…………………………...61 Figure3. Factor Affecting job adjustment ……………………………….…........66 10 11 ____________________________________________________________ UNIVERSITY OF VAASA Faculty of Business Studies Author: Uddin Waqar Topic of the Thesis: Cross-Cultural Challenges to Expatriates in Finland Supervisor: Dr. Adam Smale Degree: Master of Science in Economics and Business Administration Department: Department of Management Program: International Business Year of Entering the University: 2007 Year of completing the Thesis : 2011 pages: 141 ABSTRACT: Organizations open their subsidiaries in different countries, for this purpose they send their employees overseas as expatriates for effective management and control of their business. Effective performance of expatriates is recognized as a major determinant in the success or failure of organisations but these expatriates face many challenges due to different culture and environment during their cross-cultural adjustment. The purpose of this exploratory, qualitative study was to determine the challenges facing Indian expatriates who are working in Finland and to determine what Factors are affecting their cross-cultural adjustment and job adjustment. Data was obtained through semi- structured interviews and short questioners to seven (7) Indian expatriates working in MNCs in Finland. The empirical Study shows that not a single factor which determines expatriate cross-cultural adjustment. There are many other factors such as adjustment of their family and spouse, Host country Languages skill, Personal qualities, organizational support, job factors and non-work factors affects expatriate cross-cultural adjustment in new environment. This study gives an idea about the improvement of expatriation process and further suggestions to companies to adopts and develop such measures which facilitates expatriates cross-cultural and job adjustment. KEY WORDS: Expatriates, Cross-Cultural Adjustment, Job Adjustment, Cultural shock 12 13 1. INTRODUCTION This chapter presents the background of the main study, objective of research study, develops the research questions and outlines the structure of the research. 1.1. Background of the Study This section provides background information as to why i have chosen to carry out this research study. The reason for undertaking this research is to support and help those people who going abroad for international assignment. Having lived abroad from many years so i was aware that what kinds of problems face to a person during international assignment before beginning my research for this paper. International assignment is not always easy task; there are many challenges face to expatriates in their working environment, their social life and in the educational area. This chapter also aims to provide an analysis of different issues such as expatriates adjustment, employers, securing visas, housing, negotiating with local tax authority ect. Due to fast communications and Globalizations mostly companies now days expended their business cross border to keep speed with the global change in business scenario. According to Ferraro (2006) globalization is motivated by free markets and the idea is more then that a country opens up its markets to free trade, improvement in there economy and as a result of internationalization goods and services are making their way across-borders all over the world (Ferraro 2006). Globalizations refer to global economic integrations of many national economies in to one global economy mainly by free trade and free capital mobility and by easy and uncontrolled migrations (Daly 1999). Globalization is a 14 comprehensive phenomenon that includes economic issues, environmental, social, political and technical factors (Alfred Wagenhofer 2003). Globalization means that for an MNC the entire world is the home country. The origin of resources and the location of market are not determined by the fact that an MNC was originally set up in one particular country but by the location factors of the related countries. Hence, the measurement of globalization has to start from a global economic view rather than from the incremental view of individual MNCs’ internationalization processes (Hendrik Fisch & Michael-Jörg Oesterle 2003). This point of view means underline the MNC’s sales rather than the profits or the value added in a country. It is necessary for global managers to meet the demands accessible in the international circumstance especially the responsibilities of the expatriate manager’s increase, when they go to the foreign country on assignments they need to face different challenges of the global business scenario. Different stressors like cultural shock, language barriers, and separation from the family will finally affect the performance and productivity of the expatriates. Expatriate stress Practice follows a pattern leading to adjustment or either dropping the assignment. In today world it’s generally accepted that Due to Globalization and economic liberalization, it’s necessary for companies to sell their products and services cross border. Due to internationalization mostly organizations establish their subsidiaries cross borders, for this purpose organizations require to send their designate representatives for overseas assignments in order to maintain the standards and quality of their products and services abroad as well as rationalizing operations throughout the world (Yavas & Bodur 1999). In present era due to tough global competitions it is big challenges for multinational companies to select and recruits expatriate managers (Selmer 1995). MNC believe that if they have no expatriate manager in global business competition they will not success and lose their business in competitive edge cross borders (Webb & Wright 1996). MNCs becoming aware that for 15 the success of international market environment implementation of international global strategies are very important (Selmer & Leung 2003). According to (Harvey & Moeller 2009) there are currently 850,000 subsidiaries of multinational corporations operating globally. Survey of Economics intelligence unite limited (2010) shows that 39% of companies plan to increase their expatriate staff over the next five years, only 13% have done so over the last two years ( David Bolchover & Paul Lewis 2010). According to the (2010) Global Relocation Trends Survey Report, published by Brookfield Global Relocation Services (http://www.brookfieldgrs.com) 44 % of multinational firms expected that number of expatriates managers’ increase gradually over the next decades. A study by Fernandez et al. (2006) found that 600 French firms were operated in China with more than 150,000 expatriate employees and the number of expatriates is expected to double in the next five-years. As a result, it is predictable that there will be a Growing need to use expatriate managers who are typically relocated overseas in leadership positions. Due to development and performance functions of these managers, it is expected that expatriate managers will have a significant impact on the success of MNCs in future. The commencement of globalization period has led to build up interaction among business companies and their managers from different countries and Cultures. At the present time commonly accepted that it is very important for multinational organizations to select, train and retain employees who are able to work and stay Successfully cross border (Mendenhall & Oddou 1985, Adler & Bartholomew 1992, Light & Gold 2000). This energetic business environment has encouraged the phenomenon of expatriates. Expatriates mostly faces many challenging in adjustment to new environment and expatriates management need to adopt and performs different culture life ways and management styles rather then their own country for success of their assignment (Stroh et al. 1994). 16 Research studies show that expatriates suffer from many challenges such as food, language, working, living environment, spouse and family adjustment, manners to deal with people and things both work and non-work related (Lueke & Svyantek 2000). Thus preparing expatriates to overcome the obstacles they may confront in foreign Countries become critical. Lack of adjustment to local culture is a main reason causing expatriates to be unfulfilled with their work and life abroad. Most unsuccessful expatriates tend to be hesitant to interact with host nationals and to participate in local social life, which reduces their commitments to the host countries’ culture (Lueke & Svyantek 2000). Expatriates cross-cultural adjustment also depend on individual factors (Holopainen & Bjorkman 2005) found positive relationships between expatriates’ personal features, which relate to their ability to tolerate stress, and their achievement overseas. After the fresh and curious stage of coming into a new country, expatriates may feel loneliness and homesick, which will affect their work overseas (Flytzani & Nijkamp 2007). Expatriates may also face family-related difficulties when adjusting to a new culture. For example expatriates who live alone in a foreign country without their spouse or children may experience more psychologically frustration compared with those whose families live with them. Fast global communications and strong power of globalizations it is important to know and understand cross culture business traditions. Therefore needs and important for cultural understanding is increase worldwide. In order not to practice culture shock, the expatriation is the process that should help all expatriates integrates in the new environment as well as possible (Yavas & Bodur 1999). Expatriation is very important for successful operations across the world. The term expatriate refers to an employee sent by his or her company to manage operations in a different country (Noe et al. 2006). Organizations can send their own employees from their parent countries or even from third 17 countries to a host country. In other words expatriate is an employee who lives and works in a foreign location other than his or her home country and this process is called expatriations. Why an organization needs expatriates? There are many opportunities and challenges of global business that create the need for expatriates or organizations often provide international experience to talented managers for career developmental purposes (Mendenhall et al. 1987). Organizations mostly send their employees to control and handle their overseas business subsidiaries according to their parents company. Other strategic reasons include transmitting organizational culture, transferring knowledge, improving coordination and functional needs of control, and developing global skills and gain valuable experience (Bennet et al. 2000, Jan et al. 1994, Tung 1982, Bolino 2007). (Harrison & Shaffer’s 2005) describe that expatriates are said to be successful when they do not quit their assignments prematurely, which means to complete their tasks, objective and develop/maintain interpersonal ties with employees in the host country. Expatriate adjustment refers to a process through which an expatriate comes to feel comfortable with a new environment and go with it easily (Huang et al. 2005). Expatriates ability to adjust is more than just a matter of psychological well being in a foreign country (Aryee & Stone 1996) but also a significant assistant to the success of international assignments (Morrison 2002; Toh & Densi 2007). Since living abroad expatriates facing different problems during their adjustment such as culture shock, spouse adjustment problem, children adjustment problems, job adjustment problems, cross culture adjustment, work adjustment, organizational problems ect. Adjustments consume time require effort and money and moreover it need more power and interest of the expatriate to make the adjustments success (Aycan 1997). Previous research about expatriation shows that individuals from different cultures may come across difficulties in comprehending each 18 other's values and behavior, thus this may lead to cultural clash (Elashmawi & Harris 1993). In order to expand globally, companies send their representative overseas but these overseas assignments are usually very challenging for the employees and unfortunately incidents of employees falling short of company expectations are rather common and can cause tremendous losses for the organization (Pires et al. 2006). Despites the demanding tasks and high failure rate associated with international assignment, global corporations are still showing no sign of slowing down because of increasing foreign revenues (Bruning & McCaughey 2005). Given the complexity of overseas assignments it is understandable that not all expatriates perform well on the international assignment. Studies found that failure rates associated with expatriate assignments are between 25 and 40 percent (Forster 1997, Sanchez et al. 2000) the average cost to relocate an expatriate to be US$60,000 (Noe et al. 2006) and a total cost of over US$2 billion per year for American expatriating firms (Pires et al. 2006). Research studies indicate that 50 percent of international business assignments are considered failures because they not fulfilled the tasks of the company (Kealey et al. 2006). Other reports show that many Americans do not succeed with their foreign assignments due to different cultures and Lack of interpersonal proficiency (Black & Porter 1991, Larwood & Lee 1983). Furthermore expatriate managers are commonly given assignment all over the world without any cross-cultural preparation and education (Selmer 1997). A lack of comprehensive cultural training put out of action their ability to handle any challenges that face abroad (Douglas & Stage 2005). Many other damages to both organizations and individuals also exist such as damage to the company reputation and demoralization of the returning employees and the host country nationals as well the chances of expatriate success are likely to be increased if organizations can focus on minimizing expatriate failure and designing a suitable expatriate program. Previous 19 studies show that from last many decades range and diversity of cross cultural management and expatriates adjustment research considerably increase. My Research study focus on international human resources management shows that what kinds of cross cultural problems face to expatriate in Finland and what measures can take to make easy the cross culture adjustment of expatriates. The primary purpose of this research is to understand that what kinds of problems are facing to Indian expatriates during their cross culture adjustment and job adjustment in Finland. There are number of reasons for choosing Indian expatriates to Finland. India plays an increasingly critical role on the world economic stage. Now day’s Western companies have been hiring large number of Indian professionals in their own countries or abroad. Many people from other parts of the world now work regularly with Indian counterparts. At the same time number of expatriate managers also increase and being assigned by Indian companies to go abroad in order to assist in building up operations there (BPO News Feb 2011). Indian companies are increasingly investing abroad in different sectors. In 2005-2006 actual investment outflows stood at US$ 2089 million and the upward trend continued in 2006-2007. It is estimated that in 2007-08 overseas investment from India was around US$ 15 billion. The number of Indian companies having presence in Finland more than doubled during the past two years or so. Almost all the large IT companies including TCS, Infosys and Wipro are present in the Finnish market. Last year three big investments took place: Wipro acquired Saraware, a leading provider of design and engineering services to telecom companies; Sasken took over Botnia Hightech, supplier of hardware, software, mechanical design and testing for the wireless industry and Sterling Infotech bought a 40% share of Winwind. The same trend has been persistent in 2008. At the beginning of the 20 year, MJ Biopharma acquired a Finnish company Medipolis GMP. Due to globalization India and Finland Bilateral trade grew by over 20% in 2008 (Published by: Embassy of Finland & Finpro India, Finland Trade Centre New Delhi India, 2008). Number of Finnish companies have established and are establishing their operations in India. For instance recently Konecranes set up engineering centre in Pune. Finn air launched its newest Indian route to Mumbai. The city is now served nonstop from Helsinki. It makes a big opportunity for employees of both countries to understand each other culture values. Due to bilateral trade and investment number of Indian expatriates to Finland increase so due to this reason i choose this research study that what kinds of challenging face to Indian expatriates in Finland and to help these expatriates and make easy their cross culture adjustment and job adjustment. 1.2. Research Objective This research study is about cross cultural adjustment challenges faces to Indian expatriates in Finland. This research aims to examine the influence of different factors on cross-cultural adjustment and job adjustment. Primary objective of this Research is to study and understand that what kinds of cross cultural challenges face to Indian expatriates which working in different organizations in Finland. Adjustment to foreign culture is not easy task, for expatriates mangers the winning adjustment is essential for the success of overseas assignment (Hyder & Lovblad 2007, Haslberger & Brewster 2005, Shay & Baack 2004, Selmer & Leung 2003, Selmer 2000, Arthur & Bennett 1995). This research contributes to the literature on international human resource management by focusing on cross-cultural issues to understand that how expatriate success can be achieved. More generally this research show comparative feature of expatriate cross-cultural and job adjustment issues. It highlights the processes and characteristic which seem to be most dominant in explaining cross-cultural 21 adaptability and successful expatriate performance with particular reference to the Indian expatriates working in Finland. Over all this research will help to expatriates to know and understand those factors which affecting the efficiency of expatriate’s performance. This study also help to improve expatriates performance and efficiency cross culture and how to make easy expatriates adjustment cross culture. I want to explore this subject more through a theoretical study and also study the cultural adaptation of Indian expatriates in Finnish culture. I want to compare, see, analyze where and what are the problems that Indian expatriates are facing in Finland and how it can understand and reduce these problems. Further more I believe this research will also help other in future and make easy the work and life of expatriates in Finland. 1.3. Research Questions This Research concern about Indian expatriates which are working in different Indian organizations in Finland. From general point of views this research encourages the understanding of expatriate cross culture adjustment and job adjustment. This research help to understand that what factors affect cross- cultural adjustment process and which factors play positive contribution in the success of international assignment. There are many questions arising about this topic but the core question of my research study is follows. Which factors influence the (a) Job adjustment (b) Cross-cultural adjustment of Indian expatriates in Finland? 22 1.4. Structure of the Study This research study includes six (6) Sections. Chapter 1 presents Introduction of the subject, objective and background of the research. It shows that for what purpose this research is conducted and what is the objective of this research study. It also describes the importance of cross-cultural research and explains the research significance and cross-cultural issues in understanding expatriate adjustment. Chapter 2 is about Literature Review of the study. This chapter introduces analysis and summarizes the relevant literature on international human resources with the focus on expatriate success and cross- cultural adjustment and job adjustment. Explanation of those factors which effect cross culture adjustment and job adjustment. Chapter 3 provides the details of the Research methodology employed including how the research was planned and conducted. This chapter explain the subjects of investigation, sampling procedures that how to collect sampling, sources of contacting that how to contact with expatriates for interviews and processing research instrument and also discussions about the data collections process and questionnaires. Chapter 4 represent Finding of the research study, empirical data obtained from the Indian expatriates who are working in different organizations of Finland is summarized. Explain that what has been found through investigations of Indian expatriates about their cross-cultural adjustment and job adjustment in Finland. Chapter 5 represents Discussions of the finding presented in chapter 4 and compares these finding with literature reviews of this research study. How such findings are tied to the existing literature and what is the practical implication of research findings. Chapter 6 is about Concluding remarks and further suggestion for expatriate’s improvement in Finland. 23 2. LITERATURE REVIEW 2.1. Introduction This Chapter reviews the literature on cross-cultural and job adjustment, particularly of expatriate managers in multinational corporations (MNCs). This Chapter introduces the research structure and the significant literature on existing issues in expatriate management. Particularly the review focuses on identifying organisational, personal and cross-cultural factors that influence expatriate success or failure. Objective of this study is also to provide a comprehensible and balanced picture of current leading concepts theories and data relevant to the topic or matter that is the subject of study. Before going to study expatriate adjustment it is important to study that what is expatriates and why MNCs use expatriates. An expatriate is a corporate employee sent on international assignment for certain period of time usually from 2 to 5 years (Stroh, Gregersen & Black 2000). Expatriate is an employee who lives and works in a foreign location other than his or her home country for a certain period of time (Noe et al. 2006). Transfer of employees across national boundaries for a certain period of time so that they can work for a company in other country (Suutari & Brewster 2003). This international assignment is called cross border transfers or expatriations. Why MNCs use expatriates? According to (Moore & Lewis 1999) owners of international organisations can know the benefits of utilising people known to them and familiarized organisation in minimising the organization problems. And the reason behind is that these personnel had built a level of trust with their superiors and thus were considered to be more likely to act in the best interests of the organisation, than the unknown managerial talent available in the host country. Thus, expatriates 24 were used as leaders to manages and deal all kinds of problems and issues which face to organization in oversees market. Due to global competition and globalizations it becomes increasingly important for multinational corporations (MNCs) to maintain control over their international operations and to ensure that the MNCs’ strategic goals are met and subsidiaries act according to their headquarters’ policies. For this purpose MNCs send their representative to control and operate different operations unites efficiently and according to their headquarter rule regulation (Paik& Sohn 2004). Peterson (2003) in his study proposed three basic motives that MNCs use expatriates. Firstly, to fill the overseas positions when suitable qualified host country nationals were not available. Secondly, to improves the capabilities and competencies of their individual manager for organizational management development. Thirdly, to improve and increase the knowledge transfer within the MNC and fast exchange of knowledge from parents company to subsidiaries and modifying organizational structure and improve decision making process for organizational development. Harzing (2001) identified three specific roles of expatriates the bear, the bumble-bee, and the spider. Bears acting as replacing the centralization of decision making in MNC and provide a direct means of observation over subsidiary operations. Bumble bees fly “from plant to plant and create cross- pollination between the various branches” (Harzing 2001). MNCs used these expatriates to control subsidiaries through socialisation of host employees and the development of informal communication networks. Lastly spiders it control through the weaving of informal communication networks within the MNC. It is also important to note that assignments generally have more than one validation or reason (Sparrow et al. 2004). 25 2.2. Expatriate Management Expatriates operations and management issues increase due to internationlisation of Business operations. MNCs use expatriates not only for corporate control and expertise reasons in global markets but also to facilitate entry into new markets or to develop international management competencies (Shaffer, Harrison & Gilley 1999, Forster 2000). While it is recognized that Human Resource Management problems are more complex in the international environment. There is also increase evidence to suggest that the management of international human resources is increasingly being acknowledged as a major determinant of success or failure in international business (Dowling 1999, Hiltrop 1999). Human resources management Literatures recommended that more attention and considerations need to expatriates selections, preparations, Management and repatriation. In current era selection and sending of employees for overseas assignment become more complex then past. To carry out this process companies need to more focus more strategic approach to expatriate management, as well as close cooperation with line managers to achieve company goals and objectives. While some of dominant factors are beyond an employer’s control which related to international environment such as the global economy, politically instability or natural disaster environment ect. Due to world Globalizations expatriates management much attractive in the field of international human resources management. Because MNCs knows that these employees play important role for the success of any organizations (Black et al. 1998). But it is fact also that there are many issues related and go side by side with expatriate management and it is the reason that expatriates always far away from their assignment to give effective performance according to their organizational expectations (Dowling et al. 1999). Understanding the issues of organisations and expatriates in relation to 26 international assignments is an important part of expatriate management. One of issues is the cost management of expatriates on international assignment. According to (Krell 2005) international assignments cost three to five times an assignee's host country salary per year with the need to include adequate cost of living allowances to ensure comparable living standards for expatriates and their families. From last two decades organizations have more focus on Performance management (PM) that to improve and evaluate employees efficiency and performances by comprehensive functions such as guiding instruction, objective setting, training preparations, feedback, motivations, proper communication and development as well as coordination’s and corporate strategy (Mabey & Salaman 1995). Survey indicate that 92% of large and medium size companies believed that the number of U.S. employees increase for overseas assignment. US companies continues struggling to manage the challenging and provided full support to their work force overseas . It is estimated that approximately Annual cost of sending a manager overseas that is three to five times more then their salary in US (Mervosh & McClenahan 1997). Many companies are looking in order to organize the compensation and benefit package that have one of important part of sending employees overseas and mostly conflicting arises to convince workers to accept overseas assignment. In the past employees would like to go abroad every where they assign, but today mostly employees don’t want to accept the contract without their satisfactions and benefits, first looking their interest and to know that how much assignment will affect their career and family lifestyle and less willing to sacrifice for company. Vallone and Ensher (2001) emphasized that it is important for organisations to give more attention to how work patterns are interfering with expatriate personal lives for example their spouse employment and schooling for children. Family consistency is an important factor in achieving successful 27 international assignments (Copeland & Norell 2002). This the reason that many suitable candidates go down overseas assignments with surveys quote spouses resistance 53%, family adjustment 65%, and the spouse’s career 45% (Sievers 1998). According to (Goby et al. 2002 & Shen 2005) described that Companies face mostly following issues during overseas assignment and expatriate management. - Selection and training process. - Managing the cost of the assignment. - Minimization the expatriate’s security Risk and healthcare in some countries - Expatriates career development with international assignment. - Managing career interruption for the expatriate’s partner. - Compensations and package of expatriates. - Compete with foreign subsidiaries. - Continuing to operate legally within changing international rule regulations. - How much of expatriate administration management should be done in-house. - How to manage external cost during natural disaster and politically instability overseas environment. In fact organizations thinking about that how to best manage its global workforces. Many successful and experience MNCs have resorted to staffing from that country in overseas offices, but still it is not feasible for most companies because foreign talent pool in many countries is not enough to manage and support the organizations business activities in that country. A review of the literature and the 28 common problems faced by many MNCs indicate that there are four core areas that companies must manage successfully for best operations and management issues (Erbacher et al. 2006). 1. Selection and Training 2. Compensation and Career Planning 3. Considering the Spouse and Family 4. Repatriation 1. Selection and Training Selection and training of suitable employees is one of complex process for MNCs. Organizations always try to select such candidates which not only have specific technical skill but also have capability to adapt and adjust in foreign culture. Companies have effort to select the right expatriates for the right positions and at the right locations. For this purpose to reduced the expatriates repatriation companies select suitable potential skill candidates in home countries and as well as from host countries and give them proper training before starting their assignment. According to Stone (1991) there are ten selection criteria’s for expatriates, ability to adapt, technical competence, spouse and family adaptability; human relation skills, desire to serve overseas, previous overseas experience, understanding of the host country culture, academic qualifications, knowledge of the language of the host country, and understanding of the home country culture. Study of Huang et al. (2005) suggested that personality can be included as selecting criteria. According to Dr. Maury Peiperl of IMD International at the (2007) Summit on Globalization of Human Resources, personal background and experience has one of important criteria in selecting expatriates. Those who have traveled, studied, and 29 lived abroad previously are more capable than others in handling cross-national assignments. Templer et al. (2006) pointed out that a pre assignment trip has positive affect on expatriate adjustment on the assignment. Mostly scholars recommended cross cultural training programs give to expatriates at two times before departure and after the arrival of the expatriate. It is better that local staff can give training program in the host country because they are familiar with the conditions and environment of the host country (Osman-Gani 2000, Toh & De Nisi 2005). Pre departure training helps expatriates to form more realistic expectations of the host culture and work environment (Littrell, et al. 2006) and post arrival training addresses the real time issues that are motivated by experience in the host country (Bennet, et al. 2000). 2. Compensation and Career Planning Compensations and career planning is very important and complex challenging issues for both employees and MNCs to manage for overseas assignment. As a result dissatisfaction with compensation is reported to be very high among expatriates. The results indicate that the most difficult issues were found to be taxation, unavailability of information about local cost level/standard of living, currency rate risks, social security and pension issues, as well as spouse-related issues ect .Earlier reported findings that majority of the expatriates were not satisfied or even partially satisfied from their companies compensation and benefits The major sources of dissatisfaction were the high level of taxation, the lower level of total salary and allowances compare to foreign country adjustment (Sims & Schraeder 2004). Mostly companies have clear compensations principles and discuses and negotiate with expatriates before assignment contract. They reported that mostly compensations packages were 30 found to very a lot from case to case but the most common issue is low total salary compare to foreign expenses and adjustment. 3. Considering the Spouse and Family Today companies must think about employee’s spouse and their Family issues such as children’s school and spouses job ect during selecting, training, and considering compensation plans. There are many reasons for expatriates’ failures but most important amongst them are personal and family related issues. For example, Harris and Moran (2000) reported that expatriates were not happy with their international assignments, because of reasons related to spouse and family. Family and spouse issues are major concerns also reported by Harvey (1995) for U.S. multinationals in their international operations. Family adjustment is one of important factor in achieving successful international assignments (Copeland & Norell 2002). Study shows that 81% of international moving candidates turning down assignments because of family related problems (Marchetti 1996). No doubt that Number of company’s shows great progress on solving these issues such as Shell International Petroleum has perhaps the most extensive program in place to assist expatriates and their families (Solomon 1996). As a result in 1995 Shell created “spouse employment consultant” which advises to spouses about employments issues at abroad and assist to obtaining work visa, children’s education school and residence problems. Monsanto Inc is another company which gives first priority to expatriates family needs and their possible solutions (Solomon 1996). Harvey & Buckley (1998) who argued that there is a growing need for a social support system for expatriate couples. It can be concluded that family support play an important role in the expatriates adjustment 31 4. Repatriation Repatriation is the bridge that brings back expatriates to home from their foreign assignments. In fact the most unexpected issue in managing a global workforce is the problem of repatriation. To make possible the overseas assignment it is important that expatriates has ability to adopt and adjust in foreign culture (Allard 1996). Frazee (1997) described that over 75% repatriating employees don’t know That what is their next assignment will be as close as four months before returning to home country .As a result, career nervousness and turnover among repatriates is high and it is the actual time when companies need employees with international experience. That is the pre reasons that GTE international again start planning for repatriation. This time it begins before assignment is accepted by employees. For example (Tom Roth 1998) states that Nestlé could benefit from improving its process that clearly defining the expectations both from the company perspective and the employee’s perspective. Successful repatriation is really dependent upon good communication before, during, and after the assignment. According to (Stahl et al. 2002) found that 59% of expatriates believed that an expatriate assignment would help them advance within their firms, so it is important to satisfy this need by repatriation program. It is similar to the findings from (Stroh et al. 2000) greater career implications of overseas assignments can reduce repatriate turnover rate and increase the willingness of other employees to accept an overseas assignment. 32 2.3. Expatriate Success and Failure Expatriate Success Harrison and Shaffer (2005) describe that expatriates are said to be successful when they do not quit their assignments prematurely and complete their tasks and company objective efficiently and maintain interpersonal ties with employees in the host country. Huang et al. (2005) Expatriate adjustment refers to a process through which an expatriate feel comfortable with a new environment and correspond with it. An expatriate ability means to adjust is more than just a matter of psychological well-being in a foreign country and also a positive and significant assistant to the success of international assignments (Morrison 2002, Toh & Densi 2007). Torbiörn (1982) refer expatriates success that when a person fulfilled the demands of their assignment and achieved their goals. Normally expatriate success is realizing when the employee has achieved cross-cultural adjustment and fulfills organization goals. In order to expand globally organization always tries to move in to new markets and employees are often required to work around the world away from their parent’s country and they represent a potential competitive edge for the success of global corporations. But the fact is that overseas assignments are always very challenging for the employees as well as for organizations. Unfortunately most of employees falling short of company expectation which is a big lose for organization (Pires et al. 2006). Despites this high failure rate organizations still not slowing down international assignment because of increasing foreign revenues (Bruning & McCaughey 2005). Black & Gregerson (1991) Review of 80% US multinational companies and identified four important variables that determine expatriate success: technical ability on the job; personal qualities or relational talent; environmental variables, and family relationship. Therefore, it is conclude that expatriate 33 success is closely related with performance management, training, organizational support, training and enthusiasm to relocate and strength of the relationship between the expatriate and the firm (Erbacher et al. 2006). This study on the based of assignment of 409 expatriates from 50 different countries, Tung (1998) found that cross-cultural success of expatriate is significantly influenced by number of factors and these factors ultimately effect the performance of expatriates success. Prior international experience is supposed to bring a positive affect on the expatriate’s manger adjustment because according to social learning theory "an individual, during previous cross-cultural experiences, acquires skills to cope with uncertainties through observation, modeling, and reinforcement” (Aycan 1997). While it is also proof that international experience is very important for the adjustment and job performance of expatriate managers. As longer the duration of the experience more positive sign for the level of adjustment (Black et al. 1991, Yavas & Bodur 2000, Selmer 2002). Studies found that personal characteristic has greatly involved in the expatriates success (Visvesvaran 1997, Black 1990, Yavas & Bodur 1999). Previous studies of Black (1990), Yavas & Bodur (1999) shows a list of personal characteristic which are reflection to indicate the expatriates adjustment and success such as · Self confidence · Adaptability - Capability to deal with stress · Emotional stability · being a responsive person · Tolerance (for race/ethnic origin, ambiguity etc.) · Cultural flexibility · Public person 34 · having sympathy for others · Enthusiasm to change and communicate · Conflict resolution orientation · Cultural understanding · Loyalty and Job liability There are also many other individual-level factors which are significantly influence expatriate managers overseas assignments. These factors include pre-departure information, specific level of education, communication and interpersonal skills (Black 1990, Yavas & Bodur 1999). Expatriate Failure Expatriate failure means is the “inability of expatriate or repatriate to perform according to the expectations of the organization. According to Anne-Wil Harzing (2004) failure is the inability or underperformance of the expatriate which is expected of an organization from an employee during in international assignment. Another study noted that “assignments from which expatriates had to be brought home earlier than planned as a result of problems experienced by themselves or their families, or problems they have created for the organization” (Anderson 2005). Rodriguez (2001) a successful expatriate generally requires an extensive amount of time and money however, a failed expatriate can be even more costly for an organization. A study of multinational corporations showed that 69% (of the firms surveyed) had recall rates of expatriates between 10 to 20 percent. Compared to Japan and their figures (86% of firms had less than 5% recall rate) the United States has room for improvement (Harvey & Moeller 2009; Dowling & Welch 2005). There are many reasons for expatriates to fail and many differences between Japan and United States (Tung 1981). Sending expatriates for overseas assignment is a big investment for MNCs; 35 according to Wederspahn (1992) it has been estimated that the first year cost of expatriates on sending for oversea assignments are at least three times the basic salaries of their domestic complement. 16% to 40% assignment ended with failure (Black 1998) and cost have rise from $ 250,000 to $1 million per failure of US expatriates (Copeland & Griggs 1998). But in spite of this high cost MNCs still increasingly using expatriates to sending not only for expertise and traditionally control reasons but also to enter new market or international management competencies (Torbiorn 1994). Usually expatriates failure measure as premature return from international assignment. Research study show that premature end of assignment is not necessary expatriates failures, from organization point of views there are also many other reasons may be expatriates resigns job due to better offer or it is also possible that high performing employee quite or request for early transfer (Harzing 2004). According to Sims & Schraeder (2004) that number one reason for expatriate’s failure is the inability of the expatriates and their family adjustment to the new culture. Caligiuri (2000) identified three factors of success or failure. The first is Expatriate adjustment, which is the process to adapt new work environment and the National culture of a country, second is performance, which is related to the work environment. Many expatriates are measure their work performance as a success factor (Caligiuri 2000). However, failure to adjust to the culture can have an impact on professional duties. Finally, turnover addresses the length of time an expatriate spends on their assignment. Researchers and organizations have used past expatriate turnover as a measure to predict future turnover and the characteristics that would lead to a higher turnover rate (Bolino & Feldman 2000). The other side of success is failure or somewhere between failure and a positive expatriate experience. According to Sims & Schrader (2004) Culture shock is also a contributor to failure. 36 Boycott & Walker (2000) and Richardson & McKenna (2005) noted that spoken language communication difficulties and the inability to adapt to host country instructional environments were causing stress for international and expatriate academics. Due to complication of overseas assignments it is not necessary that all expatriates perform well on the international assignment. Studies found that expatriates assignment failure rates are between 25 and 40 percent (Sanchez et al. 2000), the average cost to relocate an expatriate to be US $ 60,000 (Noe et al. 2006) and a total cost of over US $ 2 billion per year for American expatriating firms (Pires et al. 2006). In spite of this there is much other compensation also exit to both organizations and individuals such as damage to the company reputation and discouragement of the returning employees and the host country nationals as well. Scullion (1991) according to him that early study of America MNCs showed that between 25 to 40 percent of all international assignment ended with some kinds of failure. Main Causes of Expatriate Failure According to Harzing (2001) if organizations want to reduce the failure rates of their expatriates they must focus on expatriates selection, training, appraisal and compensation. Organization must provide performance goals which are specific, measurable, realistic, timely and achievable for expatriates. Regular feedback is important for managing performance. Predepartures cross culture training to expatriates. Following are the some of reasons for expatriate’s failure (Tarique & Caligiuri 2004). - Lack of proper knowledge of assignment. - Lack of organizations training and support. - Culture shock. - Inability of spouse to adjust. - Manager’s inability to adjust. 37 - Other family problems. - Manager’s personal or emotional maturity. - Inability to cope with larger overseas responsibility. - Lack of technical competence. - Difficulties with new environment. 2.4. Expatriate Adjustment According to Torbiörn (1982) adjustment generally used to express a dependent relationship, in which changes take place in the individual as a result of new conditions in his surroundings. He focuses on ‘subjective adjustment’ and connects it to the satisfaction of the individual. Satisfaction is achieved when a person fulfilled the demands of assignment and achieved their goals. Hippler (2006) defines adjustment as “the general satisfaction with one’s life in the new environment” according to Hippler the adjustment of expatriates is heavily connected to the environment they live in. Different aspects of the host environment require adjustment. Adler (2002) described that multinational assignment is a cycle of different phases when expatriates transfer to international assignment from domestic and then again back to home country is a series of phases which include home country assignment, recruitment, selection, orientation and global assignment. Adler further explains that cross-cultural adjustment includes adjustment to work, interrelate with host country nationals, and adjustment to the non-work environment. Black & Gregersen (1990), Noonan & Elron (1994), Birdseye & Hill (1995) described that following are important factors influencing cross cultural adjustment of expatriate managers: cross-cultural training, selection criteria, family adjustment, previous international experience, cultural novelty, intercultural 38 effectiveness, intercultural interaction, and different variables relating to job such as ( role discretion, role ambiguity, wage and career prospect ect ). Oberg (1960) Torbiorn (1982) introduced the term “culture shock” and described four stages of adjustment process. The first stage is a honeymoon stage, differentiated by attraction and passion, the second stage is crisis differentiated by feelings of loss and anxiety; the third stage is recovery described as recovery from depression, and the final stage is gradual adjustment to the host culture environment. This process of adjustment has been characterized as a U-curved adjustment. According to uncertainty reduction theory (Torbiorn 1982) argued that culture shock occur when individual do not know that what will happen and suitable behaviors in the new environment and as a result of this shock feelings of uncertainty or anxiety, further added that by reducing uncertainty and anxiety should facilitate adjustment to the host culture, while increasing uncertainty should slow down adjustment to new environment. Mendenhall & Wiley (1994) put forward that impression management tactics enable individual to reduce psychological uncertainty in the new environment. However, it is necessary to have knowledge of the new culture to use properly the effective impression management tactics. Studies identified three kinds of adjustment which are work adjustment, general adjustment and Interaction adjustment (Torbiorn 1982, Gregersen & Black 1990, Black & Gregersen 1991). Work adjustment refers to the expatriate’s psychological comfort regarding the job tasks of the foreign assignment. General adjustment refers to the expatriate’s psychological comfort regarding non-work factors, such as clothing, foods, and living conditions connected with the foreign national culture. Interaction adjustment is the expatriate’s psychological comfort in interacting with host country nationals. Studies found that Job features influence work adjustment and general adjustment. For example, role clarity, role discretion, role conflict, role novelty and role overload have been identified as work-related 39 stressors because they generate uncertainty and haziness about job in a new cultural environment (Taylor & Napier 1996, Florkowski & Fogel 1999). However there are mix up evidences in support of the claim, for example according to role transition theory high role novelty may cause a stressful experience Nicholson & Imaizumi (1993), Black (1991) but on other hand some studies report a negative relationship between role novelty and work adjustment Kraimer et al. (2001) while others found no relationship (Stroh et al. 1994, Aryee & Stone 1996, Shaffer et al. 1999). Literature of cross- cultural adjustment distinguishes socio cultural adjustment from psychological adjustment (Selmer 2005, Wang & Marinova 2005). Socio-cultural adjustment refers to the ability to interact effectively with the members of a different community and to fit in, while psychological adjustment refers to individuals’ subjective wellbeing or satisfaction in the new environment (Selmer 2005, Wang & Marinova 2005). 2.5. Factors Affecting Expatriate Adjustment Black, Mendenhall and Oddou (1991) propose an integrated model of expatriated adjustment. Later this model was expended and tested by Shaffer, Harrison, and Gilley (1999) following are the main factors which directly affect the expatriate’s adjustment. 2.5.1. Individual Factors 2.5.2. Organizational Factors 2.5.3. Cross- culture Factors 2.5.4. Job Factors 40 2.5.1. Individual Factors (a). Self Efficiency, Relations Skill and Perception Skill Self-efficiency was found to be positively and significantly associated with work and interaction adjustment and not with general adjustment (Bhaskar-Shrinivas et al. 2005). Wang and Sangaland (2005) found that self-efficacy was positively correlated with work adjustment but not with job satisfaction. In addition self-efficiency did not moderate the relationship between social support, work adjustment and job satisfaction. Bhaskar-Shrinivas et al. (2005) explained the absence of a significant relationship between self-efficiency and general adjustment with the way the variable was conceptualized and measured as task-related. Self efficiency has been proposed that it is an individual ability to adjust to a foreign environment (Bandura 1977). Self efficiency is personal believe and ability to success in new environment. Such person would be able to reduce the uncertainty by taking proper feedback as expected, correct their behaviors and focus on performance and achievement. (b). Previous International Experience Previous international experience especially in the same country to which a person is being assigned should reduced culture shock by increasing the accuracy of expectation and reduced the jobs stress which helpful in the adjustment. Pervious experience also developed relocation skill which would reduced uncertainty and facilitates work and general adjustment (Black et al. 1991). Shaffer et al. (1999) found a positive relationship between previous international experience and interaction adjustment and found that this variable restrained the impact of job, organizational and other individual factors on adjustment. Other authors (Stroh et al. 1994) did not find any significant relationships between previous international experience and expatriates adjustment. Bhaskar-Shrinivas 41 et al. (2005) meta-analytic review showed a positive and significant relationship of previous international experience with work and interaction adjustment, though this factor explains only 1% of the variance of both forms of adjustment. This lack of a strong effect has been explained by the way international experience has been assessed (Bhaskar-Shrinivas et al. 2005). Usually it has been measured as the sum of total years abroad, while international experience is much more than time, including the diversity of experiences and knowledge acquisitions. (c). Language Ability A review of previous literature (Kraimer 2001, Wayne & Jaworski 2001, Bhaskar-Shrinivas et al. 2005, Selmer 2006) show a positive relationship between host language ability and interaction and general adjustment. However, no significant relationship was found between host language fluency and work adjustment. Lack of languages skill has a major barrier to effective cross culture communication (Victor 1992). Evidence shows that language proficiency in host country facilitates expatriates adjustment by more effective communication and perceptual skill (Nicholson & imaizumi 1993). (d). Emotional Intelligence Emotional and social skills have individual’s general ability to face challenges and new environment demands. Gabel et al. (2005) using a sample of 69 senior managers assigned in several Latin- American countries, found a positive correlation between some dimensions of emotional intelligence work adjustment, interaction adjustment and general adjustment. (e). Motivational Cultural Intelligence 42 Templer et al. (2006) it is personal ability to deal with cultural diversity. Motivational cultural intelligence can also define as a natural orientation to engage and enjoy cross-cultural experiences, being usually associated to self-efficiency (Tay & handrasekar 2006). Motivational cultural intelligence was found to be critical in the adjustment to new cultures and to be related with work, interaction and general adjustment. (f). Tenure in the Host Country Some authors (Yun & Lepak 2005, Kraimer et al. 2001) found a positive and significant relationship between length of assignment and the host country and the three forms of adjustment. 2.5.2. Organizational Factors Black et al. (1991) has also identified three organizational Factors that are influence expatriates Adjustments. These are organizational culture Novelty, social support from co worker and supervisor and logistic support. (a). Organizational Culture Novelty Organizational culture novelty is the difference between the organizational cultures of the subsidiary in abroad and home country. Organizational culture novelty increase uncertainty the work role. Organizational culture novelty increase the uncertainty connected with the work environment in which work role was carried out (Andreason 2003). Black et al. (1991) initial proposition acknowledged a negative relationship between organizational culture difference and adjustment. Author added more that organizational culture make easy cross 43 culture adjustment (Shaffer et al. 1999, Kraimer et al. 2001). One should expect that an organizational culture high in sociability to positively influence cross-cultural adjustment. This positive influence should continue, in spite of national cultural differences among home and destination countries. Therefore high sociability at destination would positively influence expatriates adjustment. Conversely high home sociability would positively influence repatriates cross-cultural adjustment. (b). Social Support Social support of co-workers and supervisors has also directly affected on expatriates job satisfaction and reduce the stress of new expatriates. According to (Cohen & wills 1985) organizational support reduces the stress by providing information to new expatriates that what kind of behaviors or rule regulations is acceptable in new culture and in organizational setting. Organizational support reduces uncertainty in the adjustment of newly expatriates (Shaffer at al. 1999). Co-workers social support is positively and significantly associated with the three forms of adjustment (Bhaskar-Shrinivas et al. 2005). Social support referred in the literature to helping and friendly relationships of co-workers and supervisors at the host country (Wang & Sangalang 2005, Waxin 2004, Wang & Kanungo 2004, and Andreason 2003). Furthermore they also recommended that firms need to build a supportive organizational culture, both at home as well as overseas to make easy expatriates adjustment. Waxin (2004) found empirical support for a positive relationship between supervisor and partner social support and adjustment. Theory of uncertainty avoidance help and explain a positive impact of social support on cross-cultural adjustment by the fact that social support provides information to expatriates about the new environment to reduce uncertainty and facilitate their adjustment (Bhaskar-Shrinivas et al. 2005, Andreason 2003). 44 (c). Logistical Support Mostly international organizations establish physical support system in the form of compensation and benefits packages. 1) To attracts and retains staff. 2) Provided incentive to managers to leave the home country to a foreign assignment. 3) Facilitates sending to foreign assignment and back. 4) Provided stander of living in foreign locations. Many firm provided some extra logistical support regarding housing, school, and store shopping which helping in the adjustments of expatriates (Shaffer et al. 1999). (Bhaskar-Shrinivas et al. 2005, Wang & Sangalang 2005) found indirectly approaches the subject organizational logistic support and cross culture adjustment. For instance, Shaffer et al. (1999) confirmed empirically Black et al. (1991) supposition relating co workers and logistical support with interaction adjustment. Furthermore, they recommended firms should build a supportive organizational culture, both at home as well as abroad to become easy expatriates’ adjustment. (d). Positional Factors Howell, Dorfman and Kerr (1986) suggest that stress of expatriates is different due to difference in nature and type of work such as role and responsibilities of expatriates, previous international assignment experience, host country language and individual level of position in organization. Due to differences in location and position expatriates adjustment and level of stress are also different. In a test of the comprehensive model (Shaffer at all. 1999) expended the model to include three positional factors 1) Hierarchical level 2) Functional area and 3) assignment vector. 45 2.5.3. Cross-culture Factors Due to globalizations and internationlisation it is important for the expatriate’s success that they have good understanding and knowledge of cross cultural factors. Good cross culture understanding and adjustment skill is necessary for managing international operations successfully. (a). Understanding values difference Hofstede (1984) conducted a research to understand value differences in different countries which affect cross culture adjustment. He introduced four cultural dimensions: power distance, uncertainty avoidance, masculinity and femininity, individualism and collectivism. 1. Power distance is the level of degree which indicates the different between less powerful members and more powerful. Organizations and institutions accept the fact that power is not distributed equally. This is the first dimension, which measures the way people recognize and accept an unequal distribution of power. This dimension is measured in the values survey by three items: (1) perceptions of the superior’s style of decision-making (2) colleague fear to disagree with superiors and (3) type of decision-making subordinates prefer in their boss (Hofstede 1980). Power Difference Index (PDI) was found to differ with education level and across occupations, especially in countries where it is low. Education level between high and low status employees. 2. Uncertainty avoidance is the level to which people feel endangered by indefinite situations and have created institutions and beliefs for decrease or avoiding these uncertainties. 3. Masculinity represents to male dominant society and degrees of values are success, money, and things. Where femininity is female dominant society and degree of values are caring for others and the quality of life. 46 4. Individualism is the propensity of people which is only take care there self and family and looking their own interest only. In other hand collectivism society is belong to people and group in which society look after every one and trust worthiness for others. (b) Culture Shock The most important and most obvious part of novelty in cross-cultural adaptation is the distance between home and host cultures. An inherent problem with Cultural distance exists in the choice of analysis level and in the operationlization of culture (Abramson & Inglehart 1995). A recent study (Spony 2003) has been able to overcome the shortcomings of earlier approaches to allow analysis on an individual and a national-cultural level. Culture shock is an important concept in understanding cross-cultural adjustment. According to Oberg (1960) culture shock is ‘impulsive by the anxiety that results from losing all our common customs and symbols of social interaction while identify seven symptoms, hurt, loss and scarcity, rejection, confusion, surprise, nervousness or repulsion, and feelings of powerlessness. Culture Shock is the reaction of expatriate’s to entering a new, unpredictable and uncertain environment described by (Adler 1997). The U-Curve framework has been used to describe the cross-cultural adjustment process of expatriate employees or sojourners within a host culture (Lysgaard 1955, Black & Mendenhall 1990, Usunier 1998). The honeymoon stage occurs during the first week after arrival at the host country. Individuals are stress by the new and different culture. When the newcomers start to deal with real conditions on daily basis after that the second stage begins Culture stock stage this stage is characterized by frustration and hostility towards the host nation and its people. Adjustment stage is the stage in which the individual gradually adapts to the new standard and values of the host country and can act more appropriately than they were before. 47 Mastery stage is final stage in which individual is able to effectively function in the new culture and perform there responsibilities efficiently (Selmer 2004). Figure1. A Model of Culture Shock Theory (Oberg 1960, Black & Mendenhall 1990) 48 (c). Intercultural Interaction Understanding the culture and the way of thinking that determine one’s values and behaviors is a massive challenge for expatriate’s adjustment. Culture of origin has a direct affect on cross-cultural adjustment, influencing job satisfaction, and the tendency to return to their homeland early (Takeuchi et al. 2002). Closer the cultural backgrounds and understating make easier and faster the adjustment occurs and the less to be expected that expatriates would want to return home early. Parker and McEvoy (1993) also emphasized the importance of considering culture novelty and the degree of cultural differences as fundamental factors in explaining socio-cultural adjustment. Research shows about expatriate’s assignment preparation that most US companies do not provide in depth cross cultural training before moving abroad. This practice continues though Empirical data confirmed cross cultural training programs enhance expatriates' adjustment and Performance (Black & Mendenhall 1990, Torbiorn & Leon 1998, Mendenhall & Stahl 2000, Suutari & Burch 2001, Peppas 2004, Waxin & Panaccio 2005, Selmer 2005). In relation to cross-cultural adjustment, it is perhaps the most researched topic. A poor Adjustment at destination is assumed to have a detrimental impact into organizations and Individual careers and to be the main reason for turnover. (d). Spouse and Family Adjustment Family and spouse are major issues concerns to expatriates adjustment and it is important factors in achieving successful international assignment (James & Hunsley 1995). Harris and Moran (2000) reported that mostly expatriates were not happy with their international assignments, because the reasons linked to spouse and family adjustment. He argued that there is a growing need for a social support system for expatriate couples. Black (1988, 1991) also emphasized family and spouse 49 adjustment is the most important non-work variable in international work adjustment. He said that the main reason for the expatriates failure and early back to home country is related to spouse’s inability to manage and adjust in new environment. Organization support is very important for achieving adequate spouse and family adjustment. 2.5.4. Job Factors Job factors related to specific task and duties perform by given individual. Job factors are definitely has affect on expatriates adjustment, several job factors that are important for work adjustment these are (a) Role Conflict Role conflict is problems which is face to expatriate during their work adjustment. Before going to start assignment expatriates manager must to know that what his role and how that role understand and carry out in new environment. In a new cultural environment, conflicting indication could give rise to Considerable uncertainty as the expatriates are first required to understand Conflicting signals then retain the relevant ones and finally execute appropriate behaviors (Andreason 2003, Bhaskar Shrinivas et al. 2005). It is also responsibilities of the organizations that they aware expatriate about conflict which is hurdle during their assignment. As mentioned above work adjustment has also been positively connected with performance and job satisfaction (Bhaskar-Shrinivas et al. 2005). Similarly high role conflict generating a low degree of work adjustment could prevent expatriates from being effective and could draw much satisfaction from their job. 50 (b). Role Novelty Role novelty is the degree to which that how much current role is different from past role (Black et al. 1991). Expatriate manger has face different conflicts during their job in new environment. Setting in new culture and new job need new skill and behavior because job abroad is different requirement then at home country because international environment is different from home due to legal, economic, social factors, technical and physically demand so due to difference they need to become more efficient in new environment. These factors directly influence on expatriates performance. In this case previous international experience of employee considers positive aspect for the adjustment in new environment. Similarly type of business operations and stages of international business also effect expatriates success and adjustment (Dowling et al. 1999). Additionally manager need to learn that how to interact with host country peoples. Therefore firms effort to arrange training to their employees before going abroad. (c). Role Clarity Role clarity is the given to expatriates managers a clearly defined set of expected behaviors and role descriptions. Study of job factors show that MNCs has more focus on designing global position such as expatriates has more clearly define their job and their responsibilities because it will facilitates expatriates to adjust in new environment (Shaffer et al. 1999). Role clarity involves the understanding of the job position requirements which is providing to expatriate with a clearly defined set of expected behaviors (Andreason 2003, Bhaskar-Shrinivas et al. 2005). Role clarity was positively and significantly associated with work adjustment and it is the strongest job factor determinant of work 51 adjustment. According to the meta-analysis of Bhaskar-Shrinivas et al. (2005) role clarity is also positively related with interaction and general adjustment. it is necessary that firm make such role clarity that in first year of assignment their output expectation are not too high which is not possible for expatriates for example in many Japanese firms performances expectation are much lower in first initial couple of years during international assignment (Andreason 2003). (d). Role Discretion Role discretion permits expatriates first to understand and adapt their job work role and setting to themselves rather then adapting themselves in to new environment (Mendenhall, Dunbar & Oddou 1987). In other words it is the amount of flexibility of an individual during performing their job responsibilities or the authority and the decision making freedom in their jobs (Karasek 1979, Andreason 2003, Bhaskar-Shrinivas et al. 2005). It has been argued that role discretion authorize workers to adjust their work role and setting to themselves in the new environment rather than adapting themselves to the work setting and thus enhance their work adjustment (Jan Selmer, Charles R. Fenner 2009). Bhaskar-Shrinivas et al. (2005) found a positive relationship between role discretion and job satisfaction. Accordingly therefore it is most probably a positive relationship between role discretion and expatriate work outcomes. According to Bhaskar-Shrinivas et al. (2005) role discretion is also significantly and positively associated with cross-cultural and general adjustment. 52 2.6. Cross-cultural Adjustment Over the last decade measure of cross-cultural adjustment has been used frequently in management research (Caligiuri 2000, Waxin 2004, and Bhaskar-Shrinivas et al. 2005). Cross-cultural adjustment has been one of the most frequently studied determinants of international assignments success. Ward & Kennedy (1993), Cox (2004) described that cross-cultural adaptation is a measure of the psychological health and psychological well-being associated with a move to a new cultural environment. Many researchers have opinion about cross-cultural adjustment that it is necessitate moving from one culture to another culture and adapt new culture usually (Dolan & Cardin 2005, Tesluk, Yun & Lepak 2005). Researcher uses the term cross-cultural adjustment refers to a process through which an expatriate comes to feel comfortable with a new environment and harmonize with it (Huang et al. 2005). Expatriates’ ability to adjust is more than just a matter of psychological well- being in a foreign country (Aryee & Stone 1996), but also a significant assistant to the success of international assignments (Morrison 2002, Toh & Densi 2007). First thing expatriates may normally experience after reaching to new culturally different environment are culture shock and psychological stress (Huang et al. 2005). Another major difference expatriates may find the general behavior expectations, the traditional rules of how to act that not to appear different. Weaver (1993) stated that one of most common symptom of culture shock is a lack of control or sense of helplessness due to sojourners lack of knowledge that how to act or behave in the new environment. As Bennett (1993) described the phenomenology of difference is the key to understand cultural sensitivity. Individuals in similar culture behave differently depending upon their individual understanding of events. 53 2.7. Factors Affecting Cross- cultural Adjustment 2.7.1. Individual Factors Personal factors include personality and relational skills, demographic characteristics such as age, gender as well as individual’s job tenure and culture specific knowledge and skills. Personal skill such as willingness to correspond, cultural flexibility, positive efficiency and showing tolerance etc have strong positive effect on expatriate’s adjustment (Black 1990, Kraimer et al. 2001, Selmer 2001). Expatriate with high self-efficiency means that they have high level of confidence and social ability to perform their Job or high self monitoring which is an individual’s ability to adjust his or her behavior to external situational factors (Harrison et al. 1996, Florkowski & Fogel 1999, Ward et al. 1999). Ward and Chang (1997) proposed a ‘cultural fit’ hypothesis in which he highlighted the importance of a personal attitude and suggested that in many cases it is not personality for every that calculate cross- cultural adjustment but rather the ‘cultural fit’ between the acculturating individual and host culture’s values . Hence therefore greater attention should be given to a personal interaction and to the concept of cultural fit (Church 1982, Furham & Bochner 1986). Demographic variables such as age, gender, educational level, family factors, durations of foreign operation, and previous international experience ect have been widely discussed in study (Caligiuri et al. 1989, Selmer 2001). Some studies reported that age has not relative to expatriate adjustment (Shaffer & Harrison 1998, Florkowski & Fogel 1999). But other studies described that younger expatriates were more willing to transfer their workplace and handle better then elder one because they have more ability, emotions and patient to handle and more easy to adjust cross cultural compare to elder one ( Church 1982, Gould & Penley 1985, Sell 1983). Length of foreign operations was found 54 a positive associated to work adjustment it means longer the expatriates staying overseas feeling more comfortable with local culture and work (Gregersen & Black 1991, Kraimer et al. 2001). Previous international experience has positive effect on adjustment (Selmer 2002, Klineberg & Hull, 1979) reported positive relationships between previous international experience and all dimensions of adjustment. Researchers have generally assessed previous international experience in terms of the number of previous assignments or length of experience. Cross-cultural training is important for expatriate’s adjustment. Organizations need to give pre- departure cross-cultural training, in this procedure expatriates are encouraged to attend cross-cultural seminars or workshops which are designed to explain expatriates with the culture and work life of the country to which they will be placed. If the MNC concentrates only on technical competence as a selection criterion, then it is not appropriately preparing the expatriate for successful adjustment in overseas assignments. Proficiency of foreign languages contributes higher levels of interaction because people with proficient host country language will have more opportunities to gain information about the situation and according to stress management theory it will reduce the uncertainty (Brislin 1981). Research reported a strong relationship between host country language fluency and adjustment (Caligiuri 2000, Kraimer et al. 2001). 2.7.2. Work Place Factors Many research found that Job factors directly influence cross culture adjustment (Taylor & Napier 1996, Florkowski & Fogel 1999). For example role discretion, role conflict, role novelty, role clarity and role overload have been identified as work-related problems and these problems creates 55 uncertainty and vagueness about jobs in a new cultural environment which influence cross culture adjustment (Black & Gregersen 1991, Aryee & Stone 1996 ). According to role transition theory high role novelty may cause a stressful experience (Nicholson & Imaizumi 1993, Black 1991). Some studies report a negative relationship between role novelty and work adjustment (Black 1988, Kraimer et al. 2001). The presence of social support is reduced the stress during assignment which positive influence on adjustment and absence of social support is associated with the increased probability of physical and mental illness during cross cultural sojourns (Hammer 1987). However other investigations have pointed out that pre departure training and knowledge of the firm about job assignment and responsibilities reduced stress of job performing (Ward & Kennedy 1993). Study found that the overall organizational support from the parent company was positively related to the expatriate’s work adjustment, general adjustment, and interaction adjustment (Kraimer et al. 2001). 2.7.3. Organizational Factors Mostly six organizational factors have been examined in the literature (1) co-workers social support (2) logistical support (3) supervisors social support (4) perceived organizational support (5) organizational characteristics and (6) organizational culture novelty. (1). Co-workers social support is assistance from co-worker that what is acceptable and not acceptable in new environment. Co-workers social support is positively associated with three forms of adjustment (Bhaskar-Shrinivas et al. (2005). Wang & Sangalang (2005) using a sample of Filipino immigrants in Canada found that immigrant employees reported greater support from co-workers of the Same cultural background than support from local-born co-workers and managers. Moreover the perceived 56 support from co-workers (immigrant co-workers and local born co-workers) associated positively with work adjustment and job satisfaction. 2). Logistical support is daily life support which includes financial support for housing and schools. Bhaskar-Shrinivas et al (2005) statement that logistical support is not strongly related with general interaction and work adjustment. 3). Supervisors social support assist that what is culturally acceptable or not in new work environment. (Shaffer et al. 1999, Kraimer et al. 2001) empirically tested the relationship of supervisors’ social support with work adjustment and concluded that it has no important affect on adjustment, which supported the results achieved by Wang and Sangaland (2005). 4). Perceived organizational support is individual trust that organization cares them and values their contribution. Perceived organizational support was found a positively relation with expatriates adjustment (Kraimer et al. 2001). Particularly perceived organizational support from their parent company is positively associated with general adjustment but not with work adjustment, while foreign company perceived organizational support was positively related with work and interaction adjustment but not with general adjustment. Result shows that perceived organizations support both from Parents Company and foreign subsidiaries influences expatriate international adjustment. Locally perceived helps in the adjustment of every day life challenges faces to expatriates. Organizational culture also influence work adjustment of expatriates. 5). Organizational characteristics Yavas and Bodur (1999) found that organizational characteristic is positive connection with work adjustment and the organization emphasis on the tracking down of long-term goals and strategies. Findings of many literature studies suggest that organizations play an important role to develop 57 expatriates' work adjustment. Expatriates working for employee oriented companies which protect open communication and support compromise decision making are likely to be better adjusted to work. 6). Organizational culture novelty (perceived differences between home and host organizational culture). Previous studies show that Organizational culture novelty has directly affected expatriates cross-cultural adjustment. There are always differences between home and host culture therefore researcher suggest that before going to foreign assignment proper organization training reduced the culture novelty. 2.7.4. Non-work Factors (a). Culture Shock Weaver (1993) took an overview of the relevant research of culture shock and found three main elements to this process, loss of familiar cues, the breakdown of interpersonal communication and identity crisis. Individuals differed greatly in the degree in which culture shock affects them and some individuals even could not live in foreign countries. Moreover, it should also be noted that nowadays globalization, communication technology is changing the cross-cultural experiences of people (Agar 2002). Will it is possible that impact of culture shock will reduced but it is also fact that Globalization makes intercultural contact more complex the number of people facing the challenge also increases tremendously and their reactions may also vary more widely than before (Shaules 2007). It is important to recognize that culture shock may exert a significant impact on both sojourners and the host country or institution. And it is not a just only single event it is a process which is may be 58 stressful. Research study showed that greater the difference between the host and parent country culture and living conditions more difficult the adjustment process (Aryee & Stone 1996, Kraimer et al. 2001, Selmer 2002). Zeitlin (1996) suggested that levels of culture shock might be predictable based on differences in cultural values. But on the other hand Social, political and economic characteristics of the society also affect cross cultural adjustment. Korn-Ferry International (1981) that American expatriates were mostly satisfied with assignments within Europe. Yoshida et al. (1997) reported that Japanese expatriates more positive feeling and higher levels of life satisfaction in America compared with Egypt. (b). Family and Spouse Adjustment The authors found that family characteristics and family adjustment has affect on Expatriates work adjustment. Though the mutual influence of these different factors (e.g. work and non-work, individual and organizational factors) has not been extensively examined, many of the above mentioned results challenges Black and colleagues (1991) assumptions of the restrict influence of work and non-work factors over cross-cultural adjustment. Work factors have an influence outside work and affect interaction and general adjustment, as non work factors affect work adjustment. Takeuchi et al. (2002) were one of the few exploring these joint effects. For instance, they found a reciprocal influence between expatriates adjustment and spouse’s adjustment as a spill over influence of non-work factors (such as general adjustment) on general and job satisfaction. Many researchers have argued that expatriates spouse adjustment is an important factor in the success or failure of expatriates in foreign assignments (Takeuchi et al. 2002), If the spouse having problems in the adapting of new culture, it can affect the morals and performance of the expatriate and increase stress in adjustment (Andreason 2003, Fish & Wood 1997, Harvey & Buckley 1998, Richardson & McKenna 2002, Selmer 2000). The empirical study of spouse adjustment and factors relation shows that if organization wants to reduce 59 the expatriate’s failure they need to find the spouse's opinion about overseas assignments including pre-departure training and social support for the spouse and family (Andreason 2003, Black & Gregersen 1991, Shaffer & Harrison 2001). This proposal is repeated by Suutari and Brewster's research in (1998) They emphasis that the family and spouse is a source of possible difficulties for expatriates .The family/spouse need to be motivated to move abroad because the overseas assignment may cause extra stress on the marriage and the Role of the family may be linked to the problems when making contact with host Nationals. Shaffer and Harrison (2001) developed a model about spouse adjustment to international assignments. He mention three dimensions that: how well the spouse builds relationships with host-country nationals, how well the spouse adjusts to local society and to culture in general and the extent to which the spouse has a sense of feeling at home in the foreign country. Result of these three dimensions showed that successful adjustment depend on the ability of spouse that how they re- establish in new culture environment because when one enter to new culture they have always faces many challenges because new culture is often different from normal ways of life or work . More recently, Larson (2006) found, with an US sample that spouses' enthusiasm to repeat an international assignment can be forecast by the durations of the oversea assignment, by the spouse’s general adjustment and children repatriation adjustment. In addition he mentions that spouse age was correlated negatively with the willingness to relocate again but the role adjustment was positively connected with spouse’s age and length of the stay, with the length of prior international experience and the level of spouse’s motivation for the assignment. (Shaffer & Harrison, 2001) descried that if expatriate as well as the family/spouse and the host country nationals take this view into consideration, they would be able to prepare themselves, understand the situation more clearly and take positive steps towards a successful adjustment. 60 (c). Culture Novelty Culture novelty represents the culture different between home and host countries. Different authors described Culture novelty in different name such as “culture toughness” Mendenhall & Oddou (1986) “cultural distance” Kogut & Shenkar (2001) or “country difficulty” Shaffer et al. (1999), Bhaskar- Shrinivas et al. (2005) which confirmed national cultural differences are negatively and strongly associated with the three forms of adjustment: work, interaction and general adjustment, in addition the perceived cultural distance was negatively related with spouses’ general adjustment (Mohr & Klein 2004). However some of recent studies did not support this negative connection between cultural differences and cross-cultural adjustment. For instance Jun & Gentry (2005) did not confirm a negative relationship between cultural similarities and expatriates. Comparison with Black & Stephens (1989) adaptation scale shows that the cultural novelty measure and the adjustment measure were match closely. Under such circumstances culture novelty is bound to correlate significantly with adaptation outcomes. Selmer (2006) investigated the association between culture novelty and expatriate adjustment and using 165 Western expatriates which were assign to China. This destination is specially challenging to Western expatriates because they need to adjust to a very different life-style and work context. Western expatriates answered a mail survey result showed a high score for culture novelty for all three measures of Adjustment; these findings indicate Western expatriates felt relatively adjusted even if they perceived China as a host location high in cultural novelty. Research conducted by Selmer, Chiu & Shenkar (2007) found that the impact of cultural distance was asymmetric. In their study cultural differences measurement, they found that Germans expatriates were better adjusted in USA compare to American expatriates in Germany. 61 Figure2. Factors Affecting Cross-cultural adjustment 62 2.8. Job Adjustment Jobs adjustment refers to an individual’s psychological comfort with various aspects of work such as supervisory and job responsibilities (Black & Stephens 1991). It has been observed that expatriates who are unable to adjust to work and life at a host location are also likely to perform poorly (Ones & Viswesvaran 1997). Job satisfaction is the degree to which an employee feels positively or negatively about his or her job. In fact, job satisfaction is fundamentally how employees feel about their jobs and different aspects of their jobs. It is the degree of performance that how much an employee fulfills their role and responsibilities. It is the degree to which employees like (are satisfied with) or dislike (are dissatisfied with) their current employment (Harrison 1998). Job satisfaction was the strongest factor to affect the cross-cultural adjustment of expatriates. Job satisfaction is a pleasurable feeling that results from the perception that one’s job is fulfilling or allows for fulfillment. Emerging empirical research supports a positive association between the adjustment of expatriates and their work performance (Kraimer et al. 2001). Job factors such as role discretion, role ambiguity, and role conflict will relate to work adjustment but not to general adjustment or interaction with host nationals. Past research indicates that job discretion and clarity reduce the uncertainty associated with a job and improve adjustment to work but not general adjustment. The above job feature identified as work related stressors because they generate uncertainty and affect job adjustment (Andreason 2003). According to (Kraimer et al. 2001, Shaffer et al. 1999) found that the organizational support from the parent company was positively related to the expatriate’s work adjustment. As a result, job satisfaction is an important component of increasing the level of work performance and career aspirations. It is 63 noted in the literature that there is a high correlation between job satisfaction, cross-cultural adjustment and better performance among expatriates (Naumann 1993, Testa 2001). 2.9. Factors Affecting Job Adjustment Job factors refer to a specific set of tasks and duties performed by a given individual. Job factors obviously have their greatest impact on the dimension of work adjustment and various job factors can have either a facilitating or inhibiting effect. Work role transition research in particular has focused on job factors that inhibit work adjustment such as: role conflict, role novelty, role clarity, role discretion (Shenkar 2001). Job factors greatest impact on work outcomes and various job factors could have either a facilitating or an inhibiting effect (Andreason 2003). Foreign assignments are often characterize by policy and procedural conflicts with headquarter organisations (Gregersen & Black 1992). 1. Role Clarity This construct entails an understanding of the requirements of the position providing the expatriate with a clearly defined set of expected behaviors (Andreason 2003, Bhaskar-Shrinivas et al. 2005). It has been argued that firms should place more emphasis on designing foreign assignment positions such that they provide clearly defined jobs for their expatriates (Shaffer et al. 1999). High role clarity leading to a high extent of work adjustment may enable expatriates to be effective and draw satisfaction from a job well done. According to Black et al. (1991) the clearer the job role, the less uncertainty arises on the job. It means that role clarity and role discretion will be positively associated with international adjustment. 64 2. Role Conflict Expected indications of conflicts in the new job (Black & Gregersen 1991) differences between the previous and the new job the concept depicts incompatible cues regarding job expectations due to conflicting information about what is expected of individuals in a new work setting, In a new cultural environment, conflicting signals could give rise to considerable uncertainty as the expatriates are first required to comprehend conflicting signals, then retain the relevant ones and finally execute appropriate behaviors (Andreason 2003, Bhaskar-Shrinivas et al. 2005). High role conflict generating a low degree of work adjustment could prevent expatriates from being effective and could draw much satisfaction from their jobs. 3. Role Novelty: Differences between the previous and the new job roles (Nicholson & Imaizumi 1993) other hand, Role novelty is "the degree to which the role permits the exercise of prior knowledge, practiced skills, and established habits" (Arno Haslberger 2005). A job with little novelty allows the person to adjust without much personal change leading to replication and determination, while high role novelty requires that the job holder learn new skills and behaviors, adopting either the absorption or exploration modes. Novelty is important in expatriate adjustment because it belongs to cultural distance, expectations and surprises, and to previous expatriate experience. The combinations of novelty and discretion define the adjustment modes available to the new arrival. 65 4. Role Overload This construct can be separated into qualitative and quantitative role overload. If individuals feel that they lack the necessary skills to complete an assigned work task, they are considered to experience qualitative role overload. Quantitative role overload occurs when an individual finds it difficult to complete an assigned task within an allotted period of time (Maslach & Jackson 1984). 5. Role Discretion This concept can be explained as the amount of leeway individuals have in performing their job responsibilities, or the authority and the decision making latitude in their jobs (Karasek 1979, Andreason 2003, Bhaskar-Shrinivas et al. 2005). It has been argued that role discretion permits workers to adjust their work role and setting to themselves rather than adapting themselves to the work setting and thus enhance their work adjustment (Brett 1980, Dawis & Lofquist 1984, Nicholson 1984). Assigned to a less well-known foreign work environment, a certain amount of role discretion may enable expatriates to use previously employed behavioral mechanisms to minimize the uncertainties associated with their foreign job assignment (Nicholson 1984, Black & Gregersen 1991). Aryee and Stone (1996) found a positive relationship between role discretion and job satisfaction. 66 Figure 3. Factor Affecting job adjustment 67 2.10. Summary Research literature shows that what factors affect cross-cultural and job adjustment of expatriates. Studies on expatriate adjustment offer a key to understand the issues associating with cross-cultural adjustment, and have identified important factors affecting intercultural adjustment. The reasons and motivation for choosing this type of study is that i myself an expatriates who experienced cultural shock so by this i wanted to explore more about this subject through theoretical as well as practically to know that what kinds of problems face to expatriates during their cross-cultural adjustment and job adjustment. If everyone gets affected in the same or different way, how can it be improved, and how this study help expatriates during their cross-cultural adjustment. The theoretical framework of expatriate adjustment, satisfaction and turnover has been developing since the 1980’s. Studies show that it is not a single factor which determines expatriate success or failure of an international assignment. There are also other factors such as Individual, organizational and environmental factors have to be taken into account. Expatriates who move from their home country to another country will face significant environmental changes. Literature identified that the adaptability of their family and spouse to the new environment mostly affects expatriate adjustment. Host country Languages skill, Personal qualities and their cultural background influence the degree of their adjustment. Literature shows that relationship between organizational support and cross-cultural adjustment is positive because it reduces stress and depression in new environment (Wang & Sangaland 2005). Studies result suggests that organizations support play an important role to develop expatriates' work adjustment. It reduced stress and uncertainty in new environment and facilitates adjustment. Job Role novelty, role conflict, role ambiguity, and role discretion affect adjustment to work. Non-work factors 68 also play important roles in the international assignment. Cultural differences between the host culture and home culture also disturbed expatriates cross-cultural and job adjustment. Expatriates duration was calculated as positive for expatriate’s adjustment. Finally, cross-cultural training and previous international experience has been shown to be the most effective way of reducing the uncertainty of an unfamiliar culture, and developing skills and appropriate behaviors in order to facilitate cross- cultural adjustment. Research questions of this thesis are to find out actual cross-cultural problems face to Indian expatriates in Finland. The reasons to choosing this subject is to identify cross- cultural problems that expatriates are facing in Finland and trying to help and solve these problems. I believe this research will also help for companies. They can benefit from it in future and make work and life of expatriates much easier, more understandable in Finland. For this purpose i choose Indian expatriates working in Finland to evaluate practically that which factors affect cross-cultural and job adjustment of expatriates. 69 3. METHODOLOGY 3.1. Introduction Chapter three describes the details of the research method used to collect the data and analysis it. Extensive interviews was developed to investigate that which factors affect the adjustment of Indian expatriate’s and what kind of obstacles in their way during adjustment process. In first part of research i try to develop actual and relevant qualitative data specific to expatriates cross culture adjustment and job adjustment. This research study explores different factors which affect expatriates cross culture adjustment and job adjustment such as family adjustment factors, spouse, organizational management issues, recruitment and selection, work and non work factors and personal factors ect. This research thus seeks to provide further insight about the factors influencing cross-cultural adjustment and job adjustment of Indian expatriates which is working in different organizations in Finland. Second part of the research is deals with the respondent’s background information. This information includes expatriates background and general information such as gender, age, education, family and organizational profiles such as what type of industry, size and expatriation operations. Previous personal experience, international assignment, personal effort in making cross-cultural adjustment, socializing time and traveling ect. 3.2. Research strategy In order to conduct the data for this research, sample has been identified; this is conducted from Seven (7) Indian expatriates which are working in Finland. This research is mainly concentrated on Indian expatriates mangers which is working in different organizations in Finland. Interview Questioner 70 carries out for expatriate’s reference to their jobs adjustment and cross culture adaptations. To achieve the goals of the research and reach to more accurate needed answers research are categorized as exploratory, explanatory and Descriptive research. Exploratory Researches are used where research topic is new and unknown and there is no previous research study. In this case research explores more facts about study and makes more suggestions and possibility for upcoming research. Exploratory study is used when there are little knowledge within the area of research questions and when one desires fundamental understanding of the subject (Bjorklund & Paulsson 2003). Additionally it allows researcher to observe reality and real life events and meaningful characteristics. Focus of the research centers on how to analytically generalize the framework used in an investigation (Cohen et al. 2007). Explanatory Research on the basis of theories and concentrated on “why” questions, reasons, situations or actions take place and further explanations of pervious research study which was already done on this field (Björklund & Paulsson 2003). Descriptive Research describes and detail about images, action and situations. Descriptive studies are use when basic Knowledge and understanding of a subject matter area stay alive. The objective of descriptive studies is to describe the facts and matter about subject not to explain (Starrin et al. 1991). This study research is Exploratory in nature because it is based on the interviews questions and theoretical framework and try to explore more fact about research study. While usually Explanatory research can used when the research field has developed and the plan tries to explain course of procedures and relate how the concepts and processes happened. The aim of exploratory type of research is looking for new ideas that can be tested and will form the basis for further research (Yin 2003). In this research I will explore more fact about study and makes more suggestion and possibility 71 for upcoming research. this research analysis that what kinds of cross culture problems are face to Indian expatriates during their adjustment which is working in different organizations of Finland and why these problems will arise cross culture and what measures should taken to reduce it. 3.3. Research Approach Qualitative research method was used for this research study. Qualitative studies are used to obtain depth information’s and knowledge about a subject, events or situation. This type of research generates result and conclusion which are not obtained by statistical procedures or other means of quantification (Björklund & Paulsson 2003). Qualitative method is more subjective and explains problems and conditions from the point of previous experience and research. It is more concentrating on the individual then on general observation. Qualitative Methods include focus groups in-depth interviews and review. There are more unstructured or semi structured response options (Mayring 2003). Usually this type of research is easier to start but it has more difficult to interpret and present the findings, while the findings themselves can be easily challenged (Collis & Hussey 2003). The main argument for the qualitative approach includes accepting theory development, validity of data, discovery and most of all variation (Starrin et al. 1991). In quantitative research method researchers used questionnaires and cross-sectional analyses, while for qualitative research method the researchers deal with to multi case studies with depth interviews (Makela 2006, Huysman & De Wit 2004, Kalla & Piekarri 2007). In this study Qualitative research method has a larger applicability than quantitative research method. Therefore the empirical material comes from in-depth interviews with seven Indian assigned 72 expatriates working in Finland. This research uses depth interviews with the number of expatriates. The variety of the interviewees makes bigger the perspectives on the issue and does not limit it to a specific company. For this research study subject is one of important matter. Quality of the interviewees’ answers, analysis and opinion was important more than the number of the actual interviewees. 3.4. Data Collection The participants of the research survey are seven (7) male Indian expatriates currently living and working in Finland. They are all traditional assigned expatriates. For this purpose seven expatriates interviews were conducted, which were contacted by different channels. Some were personal contacts. Other was contacted through the internet from expatriate’s forum. One expatriate was recommended by another interviewee. All interviews have been conducted in English language because every expatriates were well know and fluent in English and to keep the consistency, accuracy and reliability of the interview. Interviews were voice recorded to keep the accuracy. The interviewees were promised secrecy and gave the permission to tape record the interview. Two interviews took place at the interviewees’ homes; one at their workplaces, one were at public places like cafés, two interviews at my own flat and one by phone. Each interview took 1- 2 hours. First briefly explain the interviewed characteristics of the expatriates in order to understand the backgrounds of the interviewed respondents. Following are the characteristic of interviews respondent. 73 Table1. Background Information of the Interviewees Mostly all of this information has been collected through a short questionnaire and interviews (see Appendix at the end). An effort was made to collect appropriate data. The principle source of Descriptions Frequency Descriptions Frequency Total number of respondents 7 Martial status : Single Married 2 5 Male 7 Finnish language skill: Don’t speak Basic knowledge Good knowledge 2 3 2 Nationality : Indian 7 Expatriates working position: Software engineer Electrical engineer Human resource Manager 4 2 1 Cross cultural training : Yes No 1 6 Previous knowledge of Finland : Don’t know Basic knowledge Good knowledge 1 4 2 Expatriates Ages: 25---30 years 31---35 years 36---42 years 2 4 1 Overseas work experience: 1—3 years 4—5 years 6—10 years 1 3 3 Spouse living in Finland 4 Durations in Finland : 1----3 years 4----5 years 6----10 years 4 2 1 Children’s living in Finland 3 Previous experience: Not helpful in new assignment Helpful Very helpful 1 4 2 74 evidence was gathered from focused face to face interviews which were tape-recorded and also by phone. After the interviews and initial recording of results, a protocol was established and sent to the respondents for verification and correction. There are two types of data collections methods that are primary and secondary data. In Primary data researchers use questionnaire and interviews for collecting the data .Secondary data is the one that was previously collected by some one else for different purposes than from researcher who starts a new study. The sources of secondary data are mostly books, articles, research reports, Internet, etc. Primary data are used in this research study. Empirical part of this thesis shows that primary research of this study is Qualitative so for this purpose to get more personal, valid and profound data research uses both techniques of data collection questionnaires and interviews. The respondents have been assured secrecy due to the sensitive nature of their answers which would not possible to get by other means. Before the interview to start, time was given to Interviewees to reflect on the questions to increase the quality of the results and collect more accurate and specific data. Questions were made close-ended form to get some more actual answers as well as open-ended questions, which helped the research to go deeper into human psychology. 3.5. Interview structure Data were collected through using a short questionnaires and semi-structured interviews. Questions were made in close-ended form to get some more solid answers, as well as open-ended questions. Semi-structured interviews helped the researcher to keep the data collection reliable and constant across interviews by minimizing the differences between the interviewees. More focus on qualitative 75 interview to get more subjective information and to obtain more depth understanding and relevant information about research study and problems. Further, the researcher deliberately tried to minimize any of his own personal biases and values from entering into the interviews, so that the participants’ true feeling and views would be gathered. These questions came from different literature such as cross culture adjustment, job adjustment, and different expatriates problems ect and other different sources. English language used for interviews because every expatriate well know and fluent in English. It also provided the background of mutual understanding between interviewer and interviewees and also to reduced bias of the interpretation and increase the accuracy of the finding. Any time there was an opportunity face to face interview with an expatriate. Face-to-face interviews capture the most detail both verbal and nonverbal and maintain validity of the data but it is also most expensive to conduct because of time, distance and traveling (Maylor & Blackmon 2005). In times when interviewees could not manage to participate in face-to-face interviews then telephonic interviews were organized. Phonic interviews are less expensive than face-to-face interviews, because participant has not to travel and saving of time, money and effort. The interview questions and guide can be found in Appendix at the end after the references. 3.6. Analysis of data After conducting the interviews they were write down in order to process them for the subsequent analysis. One of suitable method for this analysis seems to be the qualitative Content analysis by Mayring (2007). 76 Qualitative Content Analysis Method This approaches is using for analyzing the data in a systematic way (Mayring 2007). This method tries to build the strengths of the quantitative analysis such as its guidance by rules and following of the concepts of verification reliability and validity. The method then changes these strengths in a meaningful way for the analysis of qualitative data (Mayring 2007). In order to conduct qualitative content analysis first it need to define the source material which is includes, to declare who was interviewed, how the sample was chosen, what is the basic conditions of the interviews were and how the text to be analyzed Mayring (2003). Furthermore to identify the objective of the analysis and in order to be able to interpret the material, it is necessary to explain and identify the research questions and theoretical background of the study as well as to assure that research questions which are included in interviews have been developed in the theoretical part of the study Mayring (2003).It is highly recommendable to test the developed methods and instruments in a pre-test and modify them accordingly as happened in this thesis by means of the first interview. To obtained unbiased data first properly analyzed the interview questions that it is specific according to my research study. Coding the data, there are three basic forms of interpretation in Qualitative content analysis, namely summary means the reduction of the data, explication means finding further material and structuring means filtering important aspect from the data. For this qualitative content analysis structuring and filtering the relevant content out of the material as a whole and analyzed. Defining the categories serves as a means to filter the interviews for testimonial fitting into the categories. During coding the data, I took out the data which was not fit in to the categories. To get unbiased and specific data which is related to research study it is very important and critical to define the categories very carefully and to watch out for potentially important data outside the categories. After developing the categories Contents 77 belonging to the variables were collected in a category system and structured. After coding the all interviews the collected declarations were analyzed and interpreted. 3.7. Reliability and validity Accuracy of the research depends on reliability, objectivity and validity of the research data. Validity refers to the extent one really measures that which is planned to be measured. Validity is a measurement instrument to describe how valid the study is, as well as to which degree the theory or study support research conclusions. Validity is concerned with whether the findings are really about what they appear to be about (Saunders et al. 2007). According to Yin (1994) the issue of reliability is explained as the ability to duplicate or replicate the results of the research and the ability to draw the same results like the original construct. Higher the validity rate more accurate of the data and research. Reliability signifies the degree of trustworthiness and reality in the measurement instrument, i.e. to what extent does one get the same results if the study and data again repeated. Objectivity means to what extent values influence the study (Björklund & Paulsson 2003). To established reliability of this research seven (7) interviews were conducted from reliable expatriates. The hard copy of unbiased semi structured interview questions were submitted to the respondents prior to the interview to help familiarize themselves with the wording, phrasing and content which were to be considered. In addition to all this the main themes of the questions were briefly explained during the interview thus to clarifying the content and context for the interviewing process. The interviewees were sent copies in advance so as to increase the reliability of the results and in order to avoid interviewer bias, research errors, and to use a standardized questionnaire for all. Study data, interview questions and results of the interviews resubmitted to the respondent for 78 verification or corrections. Furthermore, e-mails and phone calls were initiated after the interview to verify if all the points and information given by the interviewees were correctly documented. Validity measures the accuracy of the conducted research (Maylor & Blackmon 2005). To maintain the accuracy of this research and obtain sound validity base clear unambiguous open-ended as well as close-ended questions related with cross-cultural and job adjustment with the theoretical frameworks were formulated. Mostly the matter of validity was considered from two points of view, construct validity and external validity (Yin 1994). Construct validity refers to the build up of correct operational measures for the theory being studied. To meet the assessment of construct validity, specific type of changes that should be studied and analysis to be selected and the study should be determine and show that the selected measures of these changes do reflect the specific types of change that have been selected. External validity is explained as the study area to which findings can be generalized (Yin 1994).To generalize the research of this study, depth qualitative data and fact was collect from reliable source. However in this case study, the results rely on analytical generalization rather then statistical generalization. I believe that validity and reliability of this investigation survey is satisfactory because if this investigation is repeated elsewhere, the results would be similar due to the fact that expatriate managers in foreign countries face similar challenges with respective of their position or title. 79 4. FINDINGS 4.1. INTRODUCTION This chapter represent finding of the research study, empirical data obtained from the Indian expatriates who are working in different organizations of Finland is analyzed. A couple of hours have been spent with each expatriate of seven interview participants. Maximum effort was made to collect relevant data However; the standard source for gathering data was interviews and questionnaires. 4.2. Factors Affecting Cross-Cultural Adjustment and Job Adjustment 4.2.1. Individual Factors 4.2.1.1. Previous cross-cultural training Mostly expatriates were not properly got cross-cultural training but they had some of general information’s about Finland from internet such as geographical position, nature, climates and other some basic information. Respondents who had previous knowledge about Finland said that we were mentally and physically prepare for those challenges which will face to us in Finland. And we knew that it take time to adjust in new environment. Respondents said that cross culture training is very important it reduced depression and stress during adjustment process. 80 Respondent said that “Even at the beginning days i did not know the way of going to office and came back to home, because I had no map and I did not know the route and timing of buses mostly i was late to reach office and also tired so due to this my concentration towards my jobs disturbed.” One other respondent who got previous cross culture training said that “I got information about my assignment, locations, speaking with local and host family about destinations, Financial and banking assistance, school, and housing. Reading about destinations, climate, people’s habits, working habits mostly from internet search and with local staff which was already visited and remains in Finland. Information about management practice and I also got one basic survival Finnish language book. He said that i brought many warm clothes and shoes which helped me in the beginning because i knew that at early days I will no time to go for shopping.” Respondents said that pre information knowledge before going to overseas assignment is helpful in cross-cultural adjustment. They said that previous cross culture training positively affect on adjustment process because it reduce stress in new environments. Respondent who got some information from internet and from their colleagues said that “Previous cross culture training and information was very helpful during their first arrival to Finland because i aware about cold weather and snow, so i and my family brought lots of warms cloths and shoes. As i have kidney and blood pressure problems so i also brought medicines because I knew that in Finland without doctor prescription medicines is not available.” Other respondent said “Well, I was very emotional and prepare to work in Finland because it was my first experience in Europe and I want to meet and work with new peoples….even I faced many 81 problems during my adjustment due to lack of proper preparations about assignment but still i was happy to work in Finland and gain international experience.” Respondent who did not get any cross-cultural training said that “At the beginning days even I did not know how to use my travel card and how to buy foods from shops because I had no information about that, secondly I came to Finland at month of January it was very cold, snow and wind and I did not brought proper warms shoes and cloths from India and I did not know that from where I will buy but then I call to my friend and he helped me about all these things. Due to shopping even I did not attained orientations day of my job because I was tired so it affect my job adjustment. I think if i got proper previous cross culture training and preparations it probably reduce my stress and depression in Finland and helpful in cross-cultural and job adjustment” 4.2.1.2. Ages Respondents said that adjustment is also depending on ages, because different age’s groups have different problems during cross- cultural adjustment and job adjustment. One respondent 32 years old said “before coming to Finland I was very emotional and exciting because I wanted to get international experience it was my first traveling to Europe when I arrived to Finland it was difficult time because…. first few days I was staying at hotel because I was no house for accommodation. There ware big problems in my job tasks and responsibilities because it was new environment and new management. Due to new environment and new peoples there were many problems…. but still I was committed to adjustment because it was start of my international career and new experience”. 82 Another respondent who are 44 years said that “it was difficult time when I arrived to Finland because I was with my family and also lots of luggage with me. My friend house was far away and I had also problem of blood pressure and kidney. I rented a taxi but I did not know the address. It was stressful time because out side weather was also cold. There were also problems during my jobs task because my supervisor was young and he had not proper experience about my job responsibilities. One young expatriate said that “when I came to Finland it was big challenge for me and new experience….. And the fact that it was all new.... It’s about discovering what you are personally capable of doing, about adapting, living away from home and about constructing a life which is rather different from the one in home country” 4.2.1.3. Finnish language skill Expatriates were asked about Finnish language skill, they had different response about Finnish language. Two expatriates don’t speak Finnish language they said “Adjustment is very difficult without language because we don’t know what going on around us because we don’t read newspaper and other news ….and also faced problems during getting social services. General adjustment out side job is difficult because if we go to shopping, bar or restaurant or other social services mostly they speak Finnish languages and we have difficulty to communicate with them.” One other respondent said “that once I was going to office and rent a taxi so I did not know what I say to driver because he did not know English and I did not speak Finnish so it the end…I wrote him on paper. Further said that once I went to restaurant for foods so it was very difficult to give order them because the Manu was in finish and I did not read.” 83 Respondents said that adjustment is very difficult in Finland without Finnish language “ it was very difficult at early days to find some place, every things such as street names, road names, sign boards, trains no and buses system etc all in Finnish language so every time need some one to help.” Respondents said that Finnish language did not too much affect our job adjustment because mostly all employees and our management staff speak and understand English and all of our job instructions tasks and responsibilities also in English. Further they said about internal atmosphere that “All of equipment name and other instruction in office are in Finnish language which was … off course very difficult to understand and perform at the beginning days, even coffee making machine instruction in Finnish and we took help from our colleagues that how to make a coffee cup or juice. Newspaper, magazine and even announcement on notice board is in Finnish languages so then we asked from some one about the notice. All these things make us hurt and directly affect our job adjustment.” 4.2.1.4. Assignment Duration Responses indicate that 50% of participants had been located in Finland less then 3 years. Research studies show that Expatriates adjustment also depends on assignment duration in the new environment. Respondent said that “Cross culture adjustment was very difficult at early days because new environment and new things….. Every thing was looking different such as road, building, restaurant, shops, social facilities…. meeting with new peoples it was all different from India. That is I felt some fear at the beginning days that how I will adjust to all these things, but with the passage of time I familiar with these and became easy.” 84 Respondent said that “at the beginning days I did not know how to wash laundry because in India my family washes my cloths at weekend I went to washing machine room for washing but I did not know that it need reservation first and I also did not know how to pay for it, then I ask from one person he guide me about that “ Other respondent said that there are many things i did not know before so all these were very painful at early days “Such as I did not know what time shops were open and close , because mostly I did not bought nothing and shop were close, what time at night building door close, what is the code. how to appoint with a doctors at hospital and where go for treatment if problem, how to apply for family apartment ect so all these things were stress full at the beginning but with passing of time i gain more experience and more familiar with general Finnish culture which was very helpful and make my adjustment more easy.” Respondents said that job adjustment was also difficult in the beginning days because there were many things and equipment which we did not used before. We did not know how to meet with management, who is the concern person if problems arises and how to solve these “It was very difficult to performs my tasks because I felt tension and nervous in new place, all these were very hurting but as passing of time i become familiar and gain more experience which makes easy my job adjustment during my stay in Finland.” 4.2.1.5. Previous international experience Respondents said that previous international experience was very helpful preparation for international assignment particularly for job adjustment and communication. It taught us that how to communicate 85 with new environment and how to make easy job and cross-cultural adjustment. Additionally it help us that how to manage and perform our work in international assignment. Respondent said that “My previous international experience was very help full, because due to that mostly i knew that how to make understanding with new environment and what kinds of difficulties will face to me. Before arriving I contact my old friends who working in Finland. He pickup me from airport and also rented a house for me. Next day I went to my office because mostly same kind of transport system I used before and I check from goggle about my office address. During my job i also not felt too much trouble.” One other respondent said about their previous international experience that “my previous experience was helpful in cross-cultural adjustment but not very helpful at their job adjustment because my previous experience was as web developer but in Finland I was appointed as software programmer so it was different experience. “ When i ask from one other respondent about their previous experience he said “Five (5) years before when I went to my first overseas assignment it was very stressful, and tension for me because first time alone far away from home, family and totally new culture. It was hard time for me because I did not know how to start and manage myself in new job and outside environment. But this time thanks God….off course I was stressful at the beginning days but not just like before too much. Because I was bold and knew that how to solve the problems and mentally I was also prepare that what kinds of problems will face to me.” 86 4.2.2. Organizational Factors 4.2.2.1. Organizational culture Respondents said that we were expecting to find more or less common culture but it was totally different then India. The things that Indian expatriates really appreciate about Finnish are honesty and accuracy of the locals at work, Finns are the ones who follow routines and they are always at work on time and leave on time as well. Respondent said that “In India we give a lot of priority to team work. We have friendly relations in the factory. After work we usually get together, this really help towards achieving our objective to work as team. But in Finland give priority to individual work. It the beginning days every one focus on own work and no one help me properly….by this reason I was stressful during performing my work which affect my job adjustment.” Respondent said that “In Finland during decision making there is lots of discussion going on in company management and employees, no single person makes finale decision, so due to this…. employees consider their self as a part of company and feel more confidence and more willing to work and perform their work efficiently, but in India decision is made by central executive committee and even other management and employees don’t know about that so employees only consider their self as worker and feel stress and no satisfaction during their work. Respondents said “mostly Finnish have lack in expression emotions, which has been a major hurdle during working because it is difficult to know what their body language is saying… either he is satisfied or not from his work. Thus, great uncertainty existed in this regard during job performing”. 87 Respondent said that “ in India we were openly talk with co-worker and discuss job problems….but Finns are very reserve and it is very difficult to ask or discuss some things openly . One other respondent said that "In India People have relationships outside work also … not only limited to work place, but in Finland friendship and relationship is only limit to company and work place, so one way it is difficult to interact outside their job…at the initial days it was shock to see all” Respondent said that “In India we start our work at 9 am and Finnish at 6 pm and if work is not complete boss till want to continues their work even till to late hours, but in Finland work start from 8.30am until 5.00pm…. and at 5 they all go home even the work is complete or not….so it is positive for employees to do other things also outside then job “ Respondent said that “Usually in India there are worker commissions and lots of things going on as a result of the commissions….then you need to keep happy their boss and also work hard to achieved company goals and objective…. more competition between employees but In Finland no worker commission and not too much tough competition between employees so this situation make me happy and helpful during my adjustment.” One respondent said that “one of very positive thing I like in Finnish organization culture is coffee break and group discussion; it creates a relaxing atmosphere because senior managers participate in group break to talk with their co-workers…... managers or supervisors socialize with subordinates which create a confidence and atmosphere to ask…. which is helpful for job adjustment” 88 4.2.2.2. Organizational support in host country During interviews different expatriates have different answers about host organization support. Respondents said that organizational support was very helpful in adjustment process because it reduce our stress and depression at the beginning days in Finland. During interview respondent said that “Finding accommodation in Finland is very difficult… when I arrived to Finland I was staying in my friend house…my organization help me finding accommodation which reduced my stress and save time.” One other respondent said that “ my supervisor was very kind he helped me too much, at first day he give me own work setup and computer that how to work in office, he show me different things in office such as paper, pen, photo copy machine, printing, coffee machine ect. He also helps me performing my job tasks and my job novelty that how I can start my work responsibilities. Next day he took me and my family to registrations office and after that he make travel card for us, so all these ware very helpful for my adjustment.” Other respondent said that “My supervisor was not helpful and he did not support me during my job responsibilities because he was busy so it was very stressful because mostly I was not familiar from those computer programming that how to use it… but my organization help me during my children schooling and health services and also support me in finding accommodations, so it reduce me and my family tension.” 89 Respondent said that “beginning days was very difficult because I was no home and I living with my friend house. My organization did not support me in finding accommodations. And my company also not helps me during performing my jobs” Respondent said that organizational support is very important it reduce stress and depression in new environment “when i arrived to Finland I was very worried about my accommodation because my family was also with me and after that about registrations but my organization helps me and reduced my stress about cross-cultural adjustment. And little bit my organizations also help me during starting of my job responsibilities and job tasks but not too much which I was expected from my colleagues and supervisor that make me disappoint and difficult to adjust” Other respondent said that “My organization help me to finding children’s school, admission and also guide me in transportation that how to use transport and making monthly travel cards. He said that my children’s were very small and it was very stress full to take care them all day so my organization help me how to admitted it in kindergarten. “ Other respondent said that “I did not get any logistical support from my host organization such as finding accommodation, administrative support, children’s schooling and registration, admission of my spouse in Finnish language school ect but i got social support from my co-worker and supervisor which was helpful during performing my job tasks. 90 Table2. Organizational support in host country Company A No assistance Little assistance Partial assistance Fully assistance Total Expatriates Obtaining accommodation 1 1 2 4 Orientation information’s 2 2 4 Social support 3 1 4 Registration help 2 2 4 Supervisor support 2 2 4 Spouse support 1 2 3 Selecting and enrolling children’s in international schools 1 1 2 Help with Finnish authorities 2 2 4 Transportation assistance 1 1 1 1 4 Administrative assistance 2 2 4 Languages assistance 2 2 4 Assistance with non-work related practical Matters 1 2 1 4 Company B No assistance Little assistance Partial assistance Fully assistance Total Expatriates Obtaining house 1 2 3 Orientation information’s 1 2 3 Social support 2 1 3 91 Registrations help 3 3 Supervisor support 1 2 3 Selecting and enrolling children’s in international schools 1 1 Spouse support 1 1 Help with Finnish authorities 2 1 3 Transportation assistance 1 2 3 Administrative assistance 1 2 3 Languages assistance 1 2 3 Assistance with non-work related practical Matters 1 2 3 4.2.3. Non-work Factors 4.2.3.1. Cultural Novelty/Distance Finding results show that first thing which affect the expatriate’s adjustment in host country is Culture shock. Respondent said that culture different greatly affect expatriates adjustment Other respondent said that “at the beginning it was really tough. In my culture, it is very easy to get friends. We Indian are very open. If someone is new to the culture, we just invite them in to our own 92 network. In Finland, if people do not know you, they will not invite you in. They will observe you for sometime and if you are okay, they will let you get a little closer…so culture different make me very shock at the beginning days.” Respondent said "The first five months are pretty bad… I living with my friends they have family. It was shock but after that I thought if I leave… then where i will live? Because it not easy in Finland to find house once, at take time and money. And secondly I don’t know at the beginning that which location is near and suitable to my work office”. One respondent said that “ at Indian i living together with my family, they washes my cloths and make foods and many other things but in Finland i am living alone and do any things myself… at early days at was very painful for me because far away from home and living alone was stressful which affect my cross cultural adjustment.” Respondent said that “usually we are habitual to talk with friends and neighbors in street or in public place in India after hard work to become refresh but in Finland it is difficult to find some one and talk with them openly in public place and even one don’t know about their neighbour. Every day same schedule…. job and go back to home and at weekend many things to do, it makes me always boring and stress”. Respondent said “In India i had company car with driver, servants wash my cloths and take care of children’s and house and also make foods. But in Finland every day going to office in public transport and very difficult for my wife to take care 3 children’s alone. It is also difficult to save money in 93 Finland due to high expenses and high rent of accommodation, so all these things make me and my wife nervous and my concentration towards job and day to day life is disturbed” Respondents said that “In India markets shops are open late hours at night but in Finland there are specific timing for opening and closing of shops. In early days too much problem of foods and cooking because we did not know that what to buy…. from where… it was very different experiences and same to our children’s also…. usually we eat spices and chili foods which were very difficult to find and bought at the beginning days so our foods was not goods and mostly my children’s disturbed about foods and me also but then later my friend show me Indian market” One respondent said that “i moved to Finland at month of November that time weather was very cold and long dark under snow which made me and my family very depress and stress. My children were very sad due to cold weather and snow because they did not feel before such a cold weather. It was difficult time to manage my job and other day activates which badly affect my adjustment.” 4.2.3.2. Spouse’s adjustment Respondents said that spouse adjustment has affect expatriates cross-cultural adjustment and job adjustment. One respondent said that “It the early days I was very stress due to my spouse because she miss too much family and always alone at home and call me again and again to office and she don’t know that how to go for shopping alone. She always waiting me and also stress in home because no friends to communicate so all this situation make me depress and stress at the early months and my 94 full concentrations was not towards my job and my performance was not going well which make my job adjustment very slow.” Other respondent said that “My wife was job in India but in Finland it is difficult to find job without languages proficiency and also at the beginning she had no friends and she miss family members also so all this situation make her stress and due to my spouse stress I was also depress which affect my job as well as cross culture adjustment” Respondent said that “It the early days we were not own house and me and my spouse stayed with a friend house. It was difficult time because every thing was upset and my spouse also remaining sad and stress in their house because we did not feel comfortable and we were not satisfied which badly affects my job performance and day to day activate which make down my moral.” One other respondent said that “My spouse felt very difficult due to Finnish language because when she went out for shopping alone or for some social services she call me again and again to office and ask many things, and also cold dark weather under snow made her depress. Mostly she did not go out alone if she needed some things waiting me all day which was very stressful for me also and affect my job performance” I scale to spouse adaptation in the following way Strongly low “1 “ strongly high “5” 95 Table3. Affect of Spouse Adjustment Questions Scale Total Expatriates 1 2 3 4 5 How often your spouse was disagrees with your foreign assignment. 1 2 1 4 Spouse missing their family support 1 3 4 Language difficulty 2 2 4 Spouse adaptations to social services 1 2 1 4 Satisfaction from your spouse adjustment 1 2 1 4 Overall spouse' adapting to environment 2 2 4 4.2.3.3. Family Adjustment Three expatriates were living with their children. Respondents said that adjustment of children to new environment is difficult and it affects expatriates adjustment. Further said adjustments of children mostly depend on their ages, schooling and gender. One Respondent said “He had 3 years small daughter when he moved to Finland so at the early days it was very difficult because mostly she was happy with their grandparents… she miss them and always want to go back.” Another Respondent said that “He had 5 and 8 years children when he moved to Finland, that time it was very difficult for my children because they had no friends to playing and always alone. In the 96 case of my two children as you can imagine….they blamed me for the change and for all the things they lost… the school, friends, grandparents, what they missed, what’s it going to be” Other respondent said “My children’s were very sad at the early months because they were small and separated from their family members and no friends to play and talk with them because they don’t know about Finnish language and other no Indian family living near us so mostly they were inside in home and playing with computer which make them boring and always waiting for me because there mom did not took out to them alone, due to this situation my wife was very disturbed which make me very stress at the beginning and secondly I was sleeping very late mostly due to my children’s and woke up early morning, all these difficulties affect my job adjustment and other cross culture adjustment” The ranking scale of children adjustment as follows, Strongly Low “1” to Strongly High “5” Table4. Affect of Family Adjustment Questions Scale Total Expatriates 1 2 3 4 5 How often your children were disagrees with your foreign assignment. 1 2 3 Children adaptation to language 1 2 3 Children's adapting to school 2 1 3 You are Satisfied from your children adjustment 2 1 3 Overall children adapting to environment 1 1 1 3 97 4.2.4. Job Factors 4.2.4.1. Different between home and host country job positions During interviews different respondents has different opining about home and host job and adjustment. Respondent said “that their adaptation to work was good because there work was almost same as he did in India, first few days my colleagues helped me to understand my job and tasks after that I was familiar with situations” Other respondent said “their adaptation to work was difficult because their job was not similar to that of home country. at the beginning when I went to office my job was different then my home company as it is same company but here my job role clarity and tasks was not clear and different then from my home country I was prepare. Then I call to my boss in India and discussed about it then he mail to my supervisor after that my colleagues and senior help me about my job performing but it was still difficult and believe me took one month to understand and perform, which affect my job adjustment.” One respondent who came as Human resource manager said "The most difficult thing is managing people – this was always the most difficult part. You had to go and do company work… and you have to go through with it… people on board by understanding them in the first place, it was a new job…I was invited to set up a European structure for which there was no precursor. Then set up a team people from different countries.” 98 One respondent indicated “His role within the organization was clear from the start and he had also prepared train from Parents Company that why it was not difficult for me to adjust with new job.” Other two respondents said that their adjustment to work was very difficult because their work was different then home country. Respondent said that “beginning few days was very difficult because in India that time we used old version of software for programming but in Finland they used latest versions for that but then my colleagues help me one week and show that how to use and working” One respondent said “early days was very difficult for him because he felt lonely at times because of unfamiliarity with Finnish work related networks. It was difficult to make contact with the right resource. He added that it seems that interpersonal relations are only between Finns i.e. mostly socializing between Finns, no other external nationality within the company is allowed entry or closeness. So due to this reason adjustment to job was very difficult and slow.” One of respondent who work as engineer said that “ he had support and assistance from his organization But he had few difficulties to adapting to his role within the engineering department as his superiors and top management were Finnish and their way of doing work was different then me so it was difficult for me to adopt quickly. He remarked that it was and still is difficult because of the time it takes to gain their trust, get acquainted with Finnish nationals, get them to listen, and become part of the team. Respondent said that ”it was new job and new setup for me because it little bit different vision of job so adjustment was also difficult. My Indian colleague helped me to understand the work but it took 99 some time because it was different job from that of my previous experience, after two moths all most i was come to know about work habits.” Respondent said “ for me it was totally different management and i was unable that how to deal with that management even we got management practice training in home country but still there are different between theory and practical because Finnish organizations culture very different then India so due to this difference job adjustment was difficult. Respondent said that “I was working as electrical engineer in India as my work was not different then previous jobs but due to change in technology and modification it was new job for me and it was stress full time to familiar with all these new things.” Table5. Different between home and host job position Job position of expatriates Frequency Percentages Completely different then home position 1 14.28% Little bit Different then home position 3 42.85% Little bit Similar as home 2 28.57% Completely similar as home 1 14.28% Total expatriates 7 100 100 5. DISCUSSION 5.1. Overview This Chapter is about discussions of the finding presented in chapter 4 and compares these finding with literature reviews of this research study. How such findings are tied to the existing literature and what is the practical implication of research findings. Due to globalization number of firm is conducting business globally. It is widely recognized that utilizing expatriate employees effectively on international assignments is a key factor for the success of overseas projects. Due to economic development of India mostly companies looking to expend their business world wide. This is the situation for many Indian enterprises entering the market of Finland due to rapid development of the Finland economy and good opportunities for investment. For this purposes to ensure effective business operations and management overseas, mostly Indian companies sending their expatriates’ world wide. International expatriates play very important roles both in establishing and problem solving in overseas subsidiaries. But on other hands there are also many challenges face to expatriates during their adjustment. Working in new unfamiliar environment it is important for expatriates to become familiar with themselves to the dynamics of the new work environment. Due to cross-cultural challenges mostly expatriates return prematurely or that is returns before the completion of their overseas assignment which is expecting companies or do not perform according to their companies requirement. There are several reasons of expatriates’ failure such as poor performance, job dissatisfaction, cultural shock and family dissatisfaction etc. Because of the relatively high frequency of expatriate turnover and the related direct and indirect costs, international business literature has highlighted efforts to identify 101 such factors which affect cross-cultural adjustment of expatriates and how to reduce performance problems and dissatisfaction associated with foreign assignments. This research study focuses on cross-cultural and job adjustment of Indian expatriate working in Finland and analysis those factors which affect cross cultural adjustment. This discussion examine critical factors which affect cross cultural adjustment and job adjustment of Indian expatriates in Finland and compare the empirical findings of this research with the literature study . 5.2. Factors Affecting Cross-cultural Adjustment and Job Adjustment 5.2.1. Individual Factors 5.2.1.1. Previous Cross-cultural Training Previous research studies show that pre departure cross cultural training is very important and positive affect on cross-cultural adjustment and job adjustment. It reduced depression and stress during adjustment process (Desphande & Viswesvaran 1992, Weaver 1993). Finding result of this study show that proper training and development Programme are not common in India and mostly organization don’t focus on initial training and preparation. According to data only (14.28%) Indian expatriates got pre departure training. There were significant different between Indian expatriates those who got pre departure training and those who did not. For instance those who got previous training services they found more positive attitude in intercultural 102 communication, financial and banking assistance, visa and work permit assistance; housing, schools, general orientation, job adjustment and it increase ability to cope and work in a foreign environment. Respondents report that pre departure training helped during cross-cultural adjustment and positive affect on felling of well binge and confidence. One of the main benefits of cross-cultural training is that it makes open the competencies and capabilities on which a person should be working in the international assignment – in order to maximize the success of the assignment. This result support the previous research of (Templer et al. 2006) which found pre assignment training has positive affect on expatriate adjustment in host culture. Pre departure training helps expatriates to form more realistic expectations of the host culture and work environment (Littrell et al. 2006). Finding result shows that it could be useful for organizations to target cross-cultural training and development Programme to increase expatriates’ confidence and reduce any perceived inability to adjust. 5.2.1.2. Ages Previous studies suggested that younger expatriates were more willing to transfer their workplace and more willing to adjust compare to older employees (Church 1982, Gould & Penley 1985, Sell 1983). It is clear that age is an important factor for cross cultural expatriates adjustment because different age groups demonstrate different degrees of cross-cultural adjustment. Finding show Younger expatriates are mostly single and more emotional and associated with long and prestigious career and show more enthusiasm, perhaps find it easier to live and work abroad because they are active and more willing to work for their future and career which makes them easier to integrate with new environment. Older expatriates have more responsibilities and more general problems compare to the younger one. 103 Furthermore males, over the 45 years old were the ones more likely to feel the shock and still feel unadjusted after the first six months. These differences, one may infer that adjustment evolves over time and the perception of its progress differs according to individuals’ characteristics (e.g., gender and age) and initial expectations. It appears that, young expatriates were more accessible to adjust in new environment compare to older one. However, age was not a significant factor affecting cross-cultural adjustment of Indian expatriates working in Finland because mostly expatriates were young and passion to adjust in Finland. 5.2.1.3. Language skill Finding result showed that language proficiency contributes higher level of interaction and positive affect on adjustment. Expatriates felt that language proficiency is very important for cross cultural adjustment because it reduced stress and depression in new environment. Proficiency of foreign languages contributes higher levels of interaction because people with proficient host country language will have more opportunities to gain information about the situation. Finding result gives support to the stress management theory which states that fluency of host country language will reduce the uncertainty (Brislin 1981). Research reported a strong relationship between host country language fluency and adjustment (Caligiuri 2000, Kraimer et al. 2001). 5.2.1.4. Assignment Duration Expatriation duration was calculated by investigating Indian expatriates to indicate the year that they began their international assignment in Finland. The duration of time required for expatriates to turn into effective and profitable employees in a new assignment is an important consideration for enterprises. There were significant differences between different periods of expatriation duration on 104 cross-cultural adjustment. The majority of participants of this study had previous experience (57.14%) had 1 to 3 years experience, (28.57%) had 4 to 5 years experience and (14.28%) had 6 to 10 years experience in this study. literature study showed that Length of foreign operations is positive associated to work adjustment it means longer the expatriates staying overseas feeling more comfortable with local culture and work (Gregersen & Black 1991, Kraimer et al. 2001). 5.2.1.5. Previous International Experience Result show that (42.85%) expatriates had 6 to 10 years previous overseas experience and same (42.85%) had 4 to 5 years experience and (14.285 %) had 1 to 3 years past overseas experience. Previous researches show that international experience is a positive affect on the expatriates’ adjustment (Aycan 1997). While it is also proof that international experience is very important for the adjustment and job performance of expatriate managers. As longer the duration of the experience more positive sign for the level of adjustment (Black et al. 1991, Bell & Harrison 1996, Yavas & Bodur 2000, Selmer 2002). Previous international experience has positive effect on expatriates’ adjustment. Finding showed there was significant difference between having had overseas experience and not having had overseas experience on cross-cultural adjustment for Indian expatriates located in Finland which support literature study that overseas experiences were important factors influencing cross- cultural adjustment and job adjustment. Additionally, expatriates with previous experience should have developed relocation skills, which would reduce uncertainty associated with the new move, thus facilitating not only work adjustment but also general adjustment. 105 5.2.2. Organizational Factors 5.2.2.1. Organizational culture Research study showed that difference between Organizational culture increases the uncertainty connected with the work environment in which work role was carried out (Andreason 2003). Black et al. (1991) initial proposition acknowledged a negative relationship between organizational culture differences and adjustment. According to (Cohen & wills 1985) organizational support reduces the stress by providing information to new expatriates that what kind of behaviors or rule regulations is acceptable in new organizational setting. According to theory of uncertainty avoidance social support is positive impact on cross- cultural adjustment because social support provides information to expatriates about the new environment to reduce uncertainty and facilitate their adjustment (Bhaskar-Shrinivas et al. 2005, Andreason 2003). Shaffer et al. (1999) said that mostly international organizations provided some extra logistical support regarding housing, children school, transportation and store shopping etc which are very helpful in the adjustments of expatriates in new environment. Finding show that expatriates satisfaction with the assignment depends on organizational culture. Overall, expatriates' satisfaction is higher when host organization support is high. This result indicates that when expatriates' interests are in line with host organization objectives, their satisfaction with the assignment is higher. Organizational culture of Finland are very different then Indian, and that is the reason that respondent were stress and depress during their work adjustments at the beginning days because it was totally different work environment for them and it take time to adjust in new environment. Respondents got 106 support and assistance from their organization but they had still difficulties to adjust because his supervisors and top management were Finns and their way of doing work was different so it was difficult to adopt quickly and secondly it is also difficult to work and deal with multinational team because it takes time to get acquainted and gain their trust and become part of the team. Respondents said that high culture novelty is negatively associated with the degree of adjustment. Further they observed that cross cultural and job adjustment was very difficult due to culture different. This has been the case for every respondent. All respondents identified variation between Finnish and Indian organizational culture and due to this difference they felt stress during adjustment. 5.2.2.2. Organizational support in host country Result analysis of this study show that the relationship between organizational support and cross- cultural adjustment is positive. Respondents said that organizational support in Finland was very helpful during adjustment because it reduce our stress and depression in new environment which support the literature study which show that social support assist that what is culturally acceptable and not in new work environment (Shaffer et al. 1999; Kraimer et al. 2001). Organizational support positive affect cross cultural and job adjustment (Wang & Sangaland 2005). Mostly respondents got logistical support from their organisation in Finland which helped them in cross-cultural and job adjustment but did not got social support which was expected from organizations which make them depressive because respondent did not know that what to do and what is acceptable and what is not in Finnish environment. Yavas and Bodur (1999) found that organizational characteristic is positive connection with work adjustment and the organization emphasis on the tracking down of long-term goals and strategies. Studies result suggests that organizations support play an important role to develop expatriates' work adjustment. 107 It was assumed that an organizational culture that promotes friendship ties in the work environment would increase the support needed during an assignment, which in turn would enhance expatriates work and general adjustment. 5.2.3. Non-work Factors 5.2.3.1. Cultural Novelty/Distance Research study showed that greater the difference between host and parent country culture more difficult the adjustment process (Kraimer et al. 2001, Selmer 2002). Culture shock is an important concept in understanding cross-cultural adjustment. The most important and most obvious aspect of novelty in cross-cultural adaptation is the distance between home and host cultures. An inherent problem with Cultural distance exists in the choice of analysis level and in the operationlization of culture (Abramson & Inglehart 1995). Culture shock is an important concept in understanding cross-cultural adjustment. Culture Shock is the reaction of expatriate’s to entering a new, unpredictable and uncertain environment described by Adler (1997). According to the uncertainty avoidance theory, accurate expectations regarding cultural differences between home and destination country would decrease uncertainty and ease adjustment, while inaccurate expectations would increase the uncertainty. Finding of this study show that first thing a person felt when enters to a new environment is culture shock. It always affects adjustment. Culture different affect both general adjustment as well as job adjustment. Finding show that Indian expatriates significantly felt different between home and host national culture in every walks of life. Respondents felt lone less and shocks at the beginning days of their 108 assignment because in India it is easy to get friends if some one new to the culture but in Finland it is very difficult to become friends of some one if a person don’t know about you, So this perception of inadequate or insufficient local interactions would increase uncertainty and anxiety, which in turn would affect negatively adjustment and general satisfaction, while an effective interface with locals would positive and increase expatriates' adjustment and satisfaction in new environment. Finding show that due to different living style expatriates were very depress because in India mostly Peoples living together with family and take care each other but in Finland they living alone without any one help and doing all things their self, so this difference ware painful for them . These finding shows that due to culture difference respondents were affect day to day life as well as job adjustment. These results suggest that cross-cultural adjustment can be more difficult when more culturally dissimilar destinations. It is assume that culture which promotes friendship ties both in work and general environment would enhance expatriates cross-cultural and job adjustment and increase confidence of the expatriates in new environment and assume a positive relationship. Finding of this study support the research of Oberg (1960) culture shock is ‘impulsive by the anxiety that results from losing all our common customs and symbols of social interaction while identify seven symptoms, hurt, loss and scarcity, rejection, confusion, surprise, nervousness or repulsion, and feelings of powerlessness. 5.2.3.2. Spouse / Family Adjustment Finding results show that (57.14%) of Indian expatriates were living with their spouse and (42.85%) living alone. (42.85%) are living with their children’s and (57.14%) expatriates without children’s. analysis found that there was a significant difference between living with spouse or children’s and not living with a spouse or children’s during overseas assignment on cross-cultural and job adjustment. 109 Accordingly marital status and living with spouse and family were important factors influencing cross- cultural adjustment of Indian expatriates located in Finland. Family adjustment emerged as a fundamental component in host country adjustment, which affects accompanied and separated expatriates. In addition, family adjustment is positively inter-related with expatriates' work and general adjustment. These results support the findings of (Takeuchi et al. 2002) that spouse adjustment is an important factor in the success or failure of expatriates in foreign assignments, If the spouse having problems in the adapting of new culture, it can affect the morals, and performance of the expatriate and increase stress in adjustment (Andreason 2003, Fish & Wood 1997, Harvey & Buckley 1998, Richardson & McKenna 2002, Selmer 2000). The empirical study of spouse adjustment and factors relation show that if organization wants to reduce the expatriate’s failure they need to find the spouse's opinion about overseas assignments including pre-departure training and social support for the spouse and family (Andreason 2003, Shaffer & Harrison 2001). Suutari and Brewster's (1998) research emphasis that the family and spouse is a source of possible difficulties for expatriate’s .The family/spouse need to be motivated to move abroad because the overseas assignment may cause extra stress on the marriage and the role of the family may be linked to the problems when making contact with host nationals. 5.2.4. Job Factors 5.2.4.1. Different between home and host country job positions Research study show that expatriate mangers have faces different challenges during their job in new environment because setting in new culture and new job need new skill and behavior because job 110 abroad is different requirements then home country. These factors directly influence on expatriates performance. Study shows that role clarity was positively and significantly associated with work adjustment and it is the strongest job factor determinant of work adjustment. According to the (Bhaskar-Shrinivas et al. 2005) role clarity is positively related with interaction and general adjustment. Bhaskar-Shrinivas et al. (2005) found a positive relationship between role discretion and job satisfaction. Accordingly therefore it is most probably a positive relationship between role discretion and expatriate work outcomes. According to Bhaskar-Shrinivas et al. (2005) role discretion is significantly and positively associated with cross-cultural and general adjustment. According to research study high role clarity leading to a high extent of work adjustment may enable expatriates to be effective and draw satisfaction from a job well done. The empirical finding confirmed this study that those respondents who have job roles was clear and know about their job responsibilities become easy adjust to their jobs in Finland compare to those who have no clear job clarity and job discretion. Empirical result show that those respondents who have same job as their previous one felt not too much difficulties during adjustment because they already know about their job clarity and also know that how to perform their job responsibilities but other respondents who have different job from home country ware very difficult and took long time to adjust to their job. Research study shows that job novelty is important in expatriate adjustment because it belong to cultural distance, expectations and surprises. Arno Haslberger (2005) said that job with little novelty allows the person to adjust without much personal change leading to replication and determination, while high role novelty requires that the job holder learn new skills and behaviors, adopting either the absorption or exploration modes. 111 6. CONCLUSIONS AND IMPLICATIONS 6.1. Conclusions This chapter draws conclusions and recommendations for the future cross-cultural and job adjustment of expatriates and also further describes limitation of this research study. This research study has conducted two case studies to examine Indian expatriates which are working in Finland that how they make their job adjustment and cross-cultural adjustment and further examine those factors which affected their cross-cultural adjustment in Finland. Research study shows that sending expatriates to overseas are expensive and costly but still companies continues sending their mangers overseas because expatriates have very specific functions for business performance. Generally, managers are sent overseas because the skill need to company not available at locally or company want to have some one they know and trust to manage the business operation overseas. There are multiple factors that lead an expatriate to a successful outcome in foreign assignment. Most important to select suitable expatriates and organizations give cross-cultural training including language training even better would be for family to attend the same training. Finding result of this research study shows that Pre-departure training is a key factor of success for overseas assignment. There are several aspects to pre-departure training including language, cross cultural adaptation, pre-expatriate experience visits to the host country, including family in the selection and training process. Finding show that mostly Indian expatriates were largely self-selected there were no proper criteria and process for the selection of expatriates. Cross-cultural training is very important because it is intended to assist expatriates to adjust more quickly to their host environment and to be more satisfied and successful in their foreign assignments. Finding concluded that Indian 112 expatriates believe strongly that prior cross-cultural training is necessary for successful assignment. Prior cross-cultural training indeed facilitates the adjustment of expatriates in new environment. Findings of this study suggest that it could be useful to target cross-cultural training to increase expatriates’ confidence and reduce any perceived inability to adjust. Finding result shows that age is an important factor for cross cultural expatriates adjustment because different age groups demonstrate different degrees of cross-cultural adjustment. Younger expatriates perhaps find it easier to live and work abroad because they are active and more enthusiasm. In contrast, ages were not a significant factor on the cross-cultural adjustment of Indian expatriates in Finland. It is concluded from finding that expatriates durations and previous international experience is very important for the adjustment and job performance of expatriate managers. As longer the duration of the experience more positive sign for the level of adjustment as described in literature (Black et al. 1991, Selmer 2002, Yavas & Bodur 2000). Indian expatriates said that their previous overseas experience was very helpful because they mentally prepare that what kind of difficulties will face in new environment. Findings indicate that Indian expatriates who know about languages were easy adjusted compare to those who don’t know about Finnish languages. Understanding target language is important not only for the purpose of achieving organisational objectives but also for the successful cross-cultural adjustment of expatriates and their family members. However, learning a language is not easy it takes long time and it involves a whole system of individual, educational, organizational and environmental variables, all of which affect the achievement of language proficiency. Family issues concerning spouse or children’s are the key problems that Expatriates are faces in new environment. Research concluded that marital status and living with spouse and family were important 113 factors influencing cross-cultural adjustment of Indian expatriates located in Finland. It is proof that if the spouse having problems in the adapting of new culture it can affect the performance of the expatriate and increase stress in adjustment as mentions by previous researcher (Andreason 2003, Fish & Wood 1997, Harvey 1997, Harvey & Buckley 1998; Richardson & McKenna 2002). It is concluded that organization support help with housing, school for children, developing and understanding of the local transportation and information technology system, and giving the expatriate a general introduction to the host country culture could be quite beneficial during adjustment. According to study finding Organizational support during the pre-departure period of expatriation is an important process that prepares expatriates for oversea assignments. The continuous support for expatriates during the foreign assignment allows expatriates to adjust and response to different encounters in different culture environments. Accordingly, these organizational factors are positively related to the expatriate success. Most importantly, when overseas assignments are carefully managed by the organization, the benefits for both expatriates and the organization are likely to be substantial. From finding it is concluded that biggest failure factor for assignment is the inability to adapt the host culture for the expatriate or their traveling companions. When expatriates enter to new culture environment, old routines are upset, creating uncertainty and anxiety. Adjustment involves reducing the uncertainty by learning appropriate behaviors to facilitate the adjustment process. Interviews finding of this study show that culture shocks greatly affect the cross-culture and job adjustment of Indian expatriates in Finland. As noted in the literature review, the inability to adapt a host country’s cultural environment is the main reason for expatriate failure. Research studies show that greater the difference between the host and parent country culture and living conditions more difficult the adjustment process (Kraimer et al. 2001, Selmer 2002). Culture shock is an important concept in understanding cross-cultural adjustment and job adjustment. 114 Organizational culture of Finland are very different then Indian, and that is the reason that respondent were stress and depress during their work adjustments at the beginning days because it was totally different work environment for them and it take time to adjust in new environment. Job satisfaction was the strongest factor which affected the cross-cultural adjustment of Indian expatriates. Job satisfaction is a pleasurable feeling that results from the perception that one’s job is fulfilling or allows for fulfillment. According to this definition, the existence of this can mean that workers with higher job satisfaction have less intention of leaving their job. If expatriates are not satisfied while on assignment, the motivation to perform well and or to remain abroad for the specified length of time is diminished. Referring to the findings of this study the data indicated that job satisfaction of Indian expatriates obviously affected their cross-cultural adjustment in Finland. It is also concluded that for the job adjustment it is important that expatriates job role clarity and role discretion must clear and they know about their job responsibilities as mentions in literature (Black et al. 1991) the clearer the job role, the less uncertainty arises on the job. It means that role clarity and role discretion positively associated with adjustment. Result shows that role novelty also affect expatriates adjustment those respondents who had same job as their previous one adjust easy compare to those who have different job then home in Finland. 6.2. Theoretical Implications for Expatriate Success Approach of this study is to look at multi-dimensional measures, from selection to cross-cultural issues in order to better understand expatriate success and cross-cultural adjustment. In achieving expatriate success, many researchers emphasized the importance of adopting a comprehensive model for example (Avril & Magnini 2007) explained that intelligent planning and preparation for expatriation are important as selection to expatriate success. Harvey and Richey (2001) emphasised that human 115 resource managers need to update the job profiles to allow expatriates to handle with the changing nature of political, cultural, and social environments. Sheehan and Johnson (1992) provided an extensive list which consist of expatriates ability to adapt to new environment, technical competence, overseas working interest, cultural pleasure and understanding; cultural awareness and receptivity; basic understanding of the country, people and customs; language skills; ability to handle responsibilities, moral considerations and relationships, personality if expatriate manager, career paths and personnel planning aspects; costs of expatriate employment and conditions of service; and training for expatriate appointment etc. McFarland (2006) suggested that selection and training must be re- evaluated using a better model. So-called the special model, -- Select expatriates assessed for a high probability of cultural adaptation. -- Prepare expatriates with in-depth cross-cultural communication training. -- improve their transition with additional support and host-country assistants. -- Integrate expatriates into the host culture. -- make parallel expatriates work and goals with headquarters' goals. This research suggests that proper selection of an individual for an expatriate experience has been proven to be a key factor for a successful international assignment. The focus of this study on different variables such as individual and family factors, organizations support, and job satisfactions can be an effective way to look at expatriate success. According to this research workplace should be an environment in which expatriates can improve their skill and enjoyment of life, a place to find happiness in working with others and to look forward to going back the next day. It should be a place from which they can bring positive, happy and productive influences to their families, rather than carrying their stress and returning home. Therefore, organisations should invest resources to provide adequate pre-departure training, adopt support policy to reduce culture shock after arrival, and update 116 necessary development and training opportunities, not only for the expatriate themselves but also their spouse and including family members are important elements for ensuring expatriates success in international assignments. 6.3. Practical Implications of Research Finding This research study introduced practically different factors which affect cross-cultural and job adjustment of expatriates. Indian expatriates found their assignments more career-enhancing, job challenges and more attractive for personal growth and achievements. There are several implications to practice that can be drawn from this study, both the intervention of organizations and individuals. First, this research provides information regarding of individuals profile likely to be better adjusted, more satisfied and to remain in the assignment and organization during and after return. Second, it provides some useful guidance about the measures organizations can adopt to assist expatriation. With regard to individuals’ profile, the results suggest that young male and unmarried expatriates, individual skill, previous experience and fluent in the host language are better adjusted. Finding of this research show remarkable difference between Indian expatriate’s concerns pre-departure training and Finnish language skills. Pre-departure training reduces uncertainty and stress during new environment. Understanding target language is important not only for the purpose of achieving organisational objectives but also for the successful cross-cultural adjustment of expatriates and their family members. Therefore, organizations need to encourage expatriates to make more commitments in learning the target language and culture. Research study shows that previous international experience is positive relationship with cross cultural adjustment and job adjustment. Those expatriates who have previous international experience perform well in new environment compare to those who did not. This information’s may help organizations to manage their selection and preparation processes, concerning 117 international assignments. Second, organizations can also influence expatriation through some organizational practices. - Expatriation can be best managed and successful if organizations provide clear goals for the Assignment, making it easier for expatriates' adjustment. - As families have a central role, organizations must consider family within the selection criteria, knowing that family (spouse, children and parents) influence expatriates' cross-cultural adjustment. - Assure expatriation planning and pre-assignment preparation, including job, language and cross- cultural training. - Offer an assignment contract that previews differences in cost of living and special provisions about security, health care and family support. - Promote an organizational culture both at home and at overseas destination that is promoting the configuration between individual and organizational business goals. - Provide organization support such as co-workers social support, logistical support, children’s schooling support, housing support, supervisors social support ect. 6.4. Limitations of the Study This research study has some limitations and weakness in spite of the fact that this research claim many significant contributing factors, despite the comprehensiveness of the research investigation. The target sample population of this research was rather small. Due to the small sample size raises questions concerning statistical power and generalisability. 118 The next limitation inherent in this study occurred during the data collection and the interpretation of the data. Since the expatriates' ideas and opinions were based on individuals' background and experience conveyed to the researcher, the phenomena of imperfect remind and inherent biases may compromise the accuracy of expatriates' experiences. Another limitation was due to the small number of participants. The study did not show evidence of socio economic characteristics of the expatriates, except for country of origin. One of the main limitations of this study is the small sample size of expatriates and its focus on specific business environment may limit the global generalizability of the result. Therefore, future studies adopting similar methodologies but adopting larger-scale samples from other groups across different cultures and a variety of nations will contribute further to the body of knowledge in this area and will provide support for the generalizability of the proposed model. Concerning the effectiveness of the questionnaire, the research was not able to examine all factors affecting expatriates adjustment in Finland because the questionnaire was kept brief in order to increase participants’ willingness to answer it. Since a limited number of variables were used in this study, future research should include and explore other possible determinants of cross-cultural and job adjustment. Limitation of demographic factors is also one limit of this study. According to the results of this study, it exposed the significance of demographic factors. The results indicate that individual background definitely affects cross-cultural adjustment of expatriates. For that reason, the criteria for selecting expatriates should be discussed more specifically and precisely in future studies. 119 A final point refers to the length of time needed to conduct this type of research. This research is time intensive and even more so if the process of longitudinal investigation on the relationship development between expatriates and host nationals is taken into account. It is probably better to consider length of time which is needed for research. 6.5. Recommendation for future study With regard to future research, it is important and need to given more attention to those factors which influencing cross cultural adjustment and job adjustment and relationship development between expatriates and host nationals. Future research should reduce the theoretical shortcomings of the proposed factors which affect cross-cultural adjustment. Future studies adopting similar methodologies but adopting larger scale samples will contribute further and will provide support for the generalizability and subjectivity of the proposed model. Due to time constraints the data collected and analyzed were based on information derived from the Expatriates. To get a complete and less biased validation, the focus of further research should be extended to investigate attitudes and perceptions of the host nationals on Expatriates' adjustment ability and performance. More research needs to be done on cross cultural training and determining if an expatriate academic has truly had a successful transition to adapting a host country cultural environment. 120 Majority of the respondent’s expatriates came to Finland without any previous Cross-cultural training. this study suggest that it is very important for organizations to give proper cross-cultural training before going to abroad because expatriate process of adjustment should start with awareness or training where company educate expatriates about two differences cultures, other some basic knowledge of language skill and provided some courses and workshops where it would possible to interact socially among locals and create a possibility for the expatriates better culture integration. This research suggest that if organizations want to reduce the expatriate’s failure they need to find the spouse's opinion about overseas assignments including pre-departure training and organisational support for the spouse and family. For future studies it is also suggested that more research needed to identify pattern of expatriate’s adjustment while staying and working in Finland. In addition, the challenges and adjustments experience specifically by the spouses and children of these expatriates as well as factors affecting expatriates’ performance may also be areas of interest for future research. 6.6. Concluding words This thesis attempts to identify those factors which affect cross-cultural adjustment and job adjustment of Indian expatriates in Finland. Studies of expatriate adjustment offer a key to understand the issues associating with cross-cultural adjustment and have identified important factors affecting cross- cultural adjustment. In summary, it is indicate strongly that there is a need for organisations to select suitable expatriates, increase their pre-departure training and support infrastructure for expatriates before and after the arrival, with focus on improving language fluency, cultural understanding, 121 socialising time with locals, and especially in recognizing the needs and problems of their spouse and family members. There is need a comprehensive model to identify the job responsibilities of expatriates, explain the relationships between expatriate managers and local employees, awareness between expatriates and locals, organisational structure, and their work attitudes and makes recommendations for the future regarding the study, selection and training of academic expatriates as related to the chances for a successful cross cultural adaptation to a host culture. 122 REFERENCES Andrea Graf (2004). Expatriate Selection, an Empirical Study Identifying Significant Skill Profiles Thunderbird. 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Have your organization provided you any kind of training before coming to Finland. Q7. Length of your assignment in Finland Q8. How well were informed you about Finland before you moved in? Q9. Can your previous experience helpful and positive for this assignment or not? Q10. Had your host company support you and your family or not in Finland? 139 Q11. Have there is different in your home and host job positions? Q12. What you feeling with regard to organizational culture similarities and dissimilarities between Indian and Finnish. Q13. Which factors you like and don’t like in Finland and why? Q14. How Finnish culture and way of life different from your local culture and affect your adjustment? Q15. How is the quality of service such as (taxi, cafe, social services, banks, restaurants ect) in Finland different and affect your cross-cultural and job adjustment. Q16. What is the common and different between organizational responsibilities and work life style? Q17. Can Finnish managers respect the opinions of others, though may you not always agree with them? Q18. How organizational cultures in Finland affect your job adjustment? Q19. Can you likes to interact well with people who are very different from you in age, race, economic status, and education. Q20. Have you got social support or not from your colleagues or supervisor? 140 Q21. Have you got some Logistical support from your company in Finland? Q22. Have you ability to tackle problems confidently without always needing the help of staff or spouse. Q23. Are the working habits in Finland different in comparison to your own country? If so how do they differ and affect your adjustment? Q24. Please give ranking to the following questions (a) No understanding (b) Limited understanding © Good understanding (d) Fully familiar with all aspects 1. How much you know about Finland business practices___________________? 2. How much you know about Finland customs ___________________________? 3. How you know about Finland value/belief systems ______________________? 4. What about Finland Non-verbal behaviors _____________________________? Q25. Please select your answer by scaling low “1” To High “5” 1. ------------ how often your spouse was disagrees with your foreign assignment. 2. ------------ How happy you were and your family with your current overseas assignment? 3. -------------how much different between foods and drinking 141 4. -------------communications and transportations different between home and host country 5. -------------did you know about Children’s education before coming to Finland 6. -------------internal work motivation in organization 7. --------------Satisfaction from your work assignment 8. -------------Satisfaction with your family’s adjustment 9. -------------how much you knew about your role and job responsibilities before coming to Finland. Q26. Please rank the following questions out of 100. 1. How well do you think that your spouse is adapting to Finnish environment? _______ Out of 100 2. How well do you think you are adapting to Finland environment? _______ Out of 100 3. How well do you thing your children are adapting to Finnish environment _______Out of 100 4. How Finnish mangers are sensitive to other feelings and observe their reactions when you are talking with them _____ out off 100 5. Can you like new ideas, new ways of doing things, and willing to experiment and share with others ______ out of 100?