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Asm2 Inb30025

The document discusses challenges faced by the Global Insurance Company in Poland and recommendations to improve expatriate experiences. It analyzes how economic, political, social, and cultural factors negatively impacted expatriates, leading to high turnover. Expatriates struggled with language barriers, different working cultures, and family adaptation issues. The company did not adequately prepare expatriates or support their acculturation process. Recommendations include more rigorous selection criteria, cross-cultural training, family assistance, and improving repatriation support.

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0% found this document useful (0 votes)
90 views

Asm2 Inb30025

The document discusses challenges faced by the Global Insurance Company in Poland and recommendations to improve expatriate experiences. It analyzes how economic, political, social, and cultural factors negatively impacted expatriates, leading to high turnover. Expatriates struggled with language barriers, different working cultures, and family adaptation issues. The company did not adequately prepare expatriates or support their acculturation process. Recommendations include more rigorous selection criteria, cross-cultural training, family assistance, and improving repatriation support.

Uploaded by

Hà Chii
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Introduction

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).

The report opens with a brief overview of the company's situation,


stakeholders, and setting. Then, delve further into the micro and macro elements to
analyze their impact on expatriates' (expat) experience and the level of preparation
of the new expat manager versus the head office's long-term expectations. Finally,
the EAP model is incorporated to examine expats' cultural acculturation process and
generate managerial implications for GIC and MNEs in IA practices in the future.

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.

External factors that affect expatriate experiences


Economy

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

Once the economy is free, the government enacts policies to encourage


foreign entrepreneurs, implying that the local market is highly valued. IA complicate
matters because they necessitate the creation of a global management mindset and
the requirement to decentralize business authority as HQ changes the focus of
performance evaluation for IA to results (Novievi, Harvey, & Dabi 2001). It is stressful
for expatriates to be more attentive to political changes and execute information.
They might be required to enlarge their obligations during the duration of the
assignment far beyond the initial ones.

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

2
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. 

Those above are the culprits that expose expatriates to excessive work-life


stress. Communication hurdles make enculturation more complicated, and expats
may suffer from mental breakdowns, lack of excitement for their jobs and feelings of
dissatisfaction, anxiety, and depression. In short, the premature end of the process
may happen earlier than expected.

Expatriate manager preparation


Organizations in a global workplace require managers who can perceive cultural
differences and engage professionally with people from various countries (Jyoti and
Kour 2015). Mr. Gibson had made specific preparations for the mission under many
situations prior to the relocation to continue the foreign assignment from his
predecessor..

1. Work environment and market context

Gibson had a concrete picture of the environment he would operate in before


starting. He took the time to learn about former expatriates' struggles, causes, and

3
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.

Expatriates' Acculturation Process (EAP) of GIC expatriates


Dahanayake's (EAP) framework Expatriates' Acculturation Process (EAP)
(2022) includes discussions of these four regulatory stages of expatriates.

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Source: Dahanayake 2022

The first stage is Pre-departure Preparation which is a time for foreigners to


plan and set expectations when living and working abroad. Nevertheless, GIC did
not take these concerns seriously, which resulted in their tasks having a high failure
rate later on. The second stage - Honeymoon, which occurs within the first few
weeks after arrival in the host nation. Then, the third part - Gestation commences as
the newbies cope with their new surroundings. Primarily GIC expatriates experience
this process negatively, indicated by dismay and discouragement against Poland
and the natives. Poor preparation, especially the ability to communicate in the local
language, hindered them in the adjustment process. According to Setti, Sommovigo,
and Argentero (2020), when expatriates effectively acclimatize to their field of work,
they are pressured, experience more culturally competent peers, and develop ties
with local peers.

These undirected adjustments make the expatriate feel insurmountable


tension and want repatriation. GIC management is superficial with employees after
they complete their tasks and return home, making them dissatisfied. Many
organizations assume the repatriation stage because immigrants and their families
can simply reintegrate into their native culture (Passakonjaras 2019).

5
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:

Tightening selection criteria and Cross-cultural adjustment training

The HR department of GIC should add more narrow expatriates selection


criteria. The candidate's expectations are aligned with the vision of the business,
have high cultural intelligence, previous successful international missions, good
adaptability, etc. In addition, the company needs to organize training courses on
foreign languages, the economy, operating institutions of the business owner.
Sarkiunaite & Rocke (2015) confirm that examining all of these elements can assist
in determining the most purposeful route in training and will equip expatriates to feel
at ease abroad and enlightened about their new role.

Family assistance

One of the primary drivers of assignment failure has been discovered as


family members' inability to conform to living overseas (Lazarova et al. 2010).
Sambasivan, Sadoughi, and Esmaeilzadeh (2017) reported that spouses give the
mental and physical support that individuals seek to lessen the stressors induced by
job and family tensions. GIC HRM can offer value by offering adjustment services in
fellow communities to address this growing need for spouse support. For example,
by facilitating new connections in a new area and arranging groups with spouses to
encourage them to partake in constructive activities. Likewise, professional
assistance is provided, and it is necessary to consider the roles and responsibilities
of the spouse planning to continue their career.

Post-assignment concerns

Besides ongoing support policies, employees are also interested in career


development and self-affirmation in the workplace. Dickmann et al. (2008)
discovered that foreigners view their international experience as a chance for career
advancement. Therefore, if GIC wants staff to commit long-term, creating a career
pat and explicitly notifying employees about the remuneration regime is imperative.
6
Conclusion
The study gives a clear picture of the situation that forces expats to have the
acumen to adapt to the expatriation process quickly.  The adjustment of expatriates
upon joining a new culture has been shown to greatly impact the outcome or failure
of IA. In this scenario, adaptability and family concerns are cited as the underlying
determinants of the drop in expat performance. Thus, the solution focuses on three
critical dimensions in this sense: (1) cross-cultural adjustment, (2) family assistance,
and (3) post-assignment concerns.

References
Cole, N & Nesbeth, K 2014, ‘Why do international assignments fail?: expatriate
families speak’, International studies of management & organization, vol. 44, no. 3,
pp. 66-79, DOI: 10.2753/IMO0020-8825440304. 
Dahanayake, P 2022, 'Lecture 2. Expatriate Management in foreign cultures',
INB30025 Global Business across Culture, Learning materials via Canvas,
Swinburne University of Technology, viewed 20 February 2022.
Dickmann, M, Doherty, N, Mills, T & Brewster, C 2008, 'Why do they go? Individual
and corporate perspectives on the factors influencing the decision to accept an
international assignment', The International Journal of Human Resource
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Jyoti, J & Kour, S 2015, ‘Assessing the cultural intelligence and task performance
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Przytuła, S, Rozkwitalska, M, Chmielecki, M, Sułkowski & Ł, Basinska, B 2014,
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Sambasivan, M, Sadoughi, M & Esmaeilzadeh, P 2017, ‘Investigating the factors
influencing cultural adjustment and expatriate performance’, International Journal of
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Setti, I, Sommovigo, V & Argentero, P 2020, 'Enhancing expatriates' assignments
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and performance', Current Psychology, https://doi-org.ezproxy.lib.swin
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