Asm2 Inb30025
Asm2 Inb30025
Global integration has been vigorously fostered in recent years, and labor and
work overseas are becoming an inevitable trend and firm expansion abroad is
growing the number of prospects for foreign positions. Conversely, as MNEs operate
geographically, it is becoming commonplace to deal with diverse cultures comprised
of individuals from various backgrounds. The primary purpose of this report is to
clarify the internal and external effects on expatriates that have affected the
performance of Global Insurance Company (GIC) subsidiary in Poland and to
propose to the human resources department (HR) solutions for global staff to
overcome obstacles and successfully complete an international assignment (IA).
Casestudy briefing
The case study revolves around the difficulties of GIC, a London-based firm
providing insurance and financial services to individuals and businesses. After
entering Poland in 1989 and experiencing a slight decrease in sales in 1992, the
Headquarters (HQ) dispatched Peter Gibson to identify the cause of the performance
decline and overcome it to establish a strong position in the Polish market. He
determined that the IA here failed mainly due to language and cultural barriers. A
sequence of adverse outcomes has cost GIC money, time, and reputation, as on-
duty expatriates are unwilling to continue and have high turnover rates. Thereby,
Gibson was tasked with solving the problems that made expatriate assignments fail
under the peculiarities of the Polish market.
There are many stakeholders involved in the case; however, there will be only
a few key players that are closely related under the situation that GIC is facing.
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Including GIC employees (locals and expats), new managing director Gibson,
expatriates' families, and GIC management. The change of Polish political
institutions and economic model requires GIC have to have an operating strategy to
adapt to the context of the business environment.
The Polish government's transition from communist to liberal has made the
Polish market more appealing as many FDIs flow into the market to compete. A free
market would have no state intervention and regulation, so trade depends entirely on
supply and demand. Expatriates may be unprepared and unoriented for rapid
economic changes as they need to make new approaches to attract new customer
segments unfamiliar with life insurance.
Politics
Social
The basic wage disparity between indigenous and expats provokes tensions.
Although locals value expats' expertise and superior market knowledge, it also
impedes the professional growth of local managers. Subsequently, the working
relationship between the two sides is strained. According to Przytua et al. (2014),
positive job outcomes arise from both a personal (satisfaction, sense of
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accomplishment, contentment) and a group standpoint (group effectiveness,
members' harmony).
Culture
Polish coworkers and clientele rarely speak English, while most expatriates
are unable to communicate in Polish. Rubin % Rubin (2011) research showed
67% of respondents believe that disinformation contributes to ineffectiveness,
and 40% affirm that misinformation makes IA cooperation more problematic.
Discrepancies in working culture (e.g. having to commit full time to tasks and
less time for loved ones).
The family is experiencing challenges in the adaptation, such as marital
troubles, daily life issues, loneliness, and academic problems for the kid. It
creates conflicts between family members, Cole and Nesbeth (2014) argued
that the second most common rationale for assignment failure is family
constraints.
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the repercussions. Anticipating potential challenges in working culture, language,
and living surroundings aid Gibson's awareness of cultural diversity and function as a
solid stepping stone to cross-cultural adjustment. Gibson's versatility and cultural
sensitivity prove that he is ready to blend in.
2. Family
From what is known about family expatriation, Gibson would make plans for his
family, possibly enlisting the help of the company and the local community. To
prevent unwanted problems, for example, build social contacts with local inhabitants
and other foreigners, let offspring acclimate to the new culture gradually, and
coordinate spousal career routes.
3. Competency
The insurance industry was highly sought in Poland at the time, yet GIC could not
provide an expatriate resource who possessed both adequate financial competence
and linguistic ability. Gibson must have acknowledged the impediment by assessing
the purpose of the IA and the complexity of expatriates in practice. He was mindful
that the ability of Host Country Nations (HCNs) outweighed that of nationals, but the
language barrier had pulled them back, so he pondered devising tactics to overcome
it.
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Source: Dahanayake 2022
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Recommendations and future implications
The results of GIC office's operations in Poland are a testament to a series of
shortcomings in the company's foreign assignment practice. Here is what they
should do:
Family assistance
Post-assignment concerns
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