Dehi Business Review X Vo. 8, No. 1 (January - June 2007) MANAGING EXPATRIA TRIATE TE STRESS V.. Baa Koteswari* Mousumi S. Bhattacharya** GLOBAL business is growing rapidy today and continues to grow in future aso. To keep pace with the goba change in business scenario, goba managers need to meet the demands existing in the internationa context. Especiay the expatriate managers, when they go to the foreign country on assignments they need to face the chaenges of the goba business scenario. Foreign assignment aong with excitement and enjoyment brings the conditions of distress aso to the expatriates. Potentia stressors ike cutura shock, anguage barriers, and separation from the famiy wi eventuay affect the performance and productivity of the expatriates and cost to the firm. The expatriate stress process foows a pattern eading to either adjustment or dropping the assignment and coming back to the parent country. An attempt has been made in the present study to find the probems and stressors of the expatriates. Considerabe ways of managing stress at individua eve and organizationa eve are suggested. Keywords: Stress, Expatriate Stress, Stressors. Introduction Goba competition, market demands for mutinationa management structures in the parent country demand the firms to send their best peope to forge internationa reationships and create an internationa corporate presence. Such peope i.e., the expatriates, though perceive the foreign assignments as an instrument towards career progression and financia benefits, often face probems to adjust with the different poitica, economic and cutura environment of the host countries i.e. the pace of the assignments. If ignored, these adjustment probems resut in stress, both in professiona and persona ives of expatriate which may ead to high turnover; ow productivity, ow morae and decreased effectiveness. It aso damages the firm s reputation in the internationa context. The faiure in the expatriate assignment may aso affect the group dynamics by the way of de-motivation and ow commitment etc. The reationships between the host-parent countries may aso be significanty affected. The productivity of the foreign operations may go down; the abiity to operate in the host country may be essened, the company may ose its market share to competitors and aso damage its reputation among cients. Faiures can have profound effects on the expatriates themseves by ruining their careers, causing persona bows to their sef-esteem and ego, and may be taxing on their famiy ife both physicay and psychoogicay (Yavas and Bodur, 1999; Mendenha and Oddou, 1985). Expatriates differ in their causes of faiures of the assignment. It has aready been estabished that stress, job reated and persona, is one of the major reasons of expatriate faiure. The dysfunctiona consequences of stress in a foreign assignment can take on a number of negative impications such as, absenteeism, acoho and drug abuse, turnover, eary return to the domestic organization, aggression * Lecturer (HRM & OB), Institute of Finance and Internationa Management (IFIM), Bangaore, Karnataka, India. ** Lecturer (HRM & OB), Institute of Finance and Internationa Management (IFIM), Bangaore, Karnataka, India. 89
V. Baa Koteswari and Mousumi S. Bhattacharya to others within and outside the organization, extended eaves, or any combination of these negative behaviors (Lange & McCune 1989, Jong & McMuen 1992, Liese et a. 1997, Darby 1998, Kemmerer et a. 1998, McIntosh et a. 1998). The present paper makes an attempt to discuss the major issues reated to the expatriates stress and forwards some major coping strategies, both organizationa and persona. Stress Process in Expatriates Appying the mode of the Seye s (1976) Genera Adaptation Syndrome [GAS], four stages of expatriate stress can be identified: Pre-aarm, Aarm, Resistance and Exhaustion stages (as shown in Figure 1). The stages are as foows: Pre-aarm- Expatriate is totay unprepared for the foreign assignment at this stage. Training is given to the expatriate in the parent country to cope with the cross-cutura differences and to face the chaenges existing in the host country. Aarm- The stage of aarm starts when an expatriate actuay and in the host country. In spite of the training given, he identifies the differences in cuture and experience unfamiiarity of situation, peope, etc. Hence he/she may find that other peope s behavior does not match with one s own behavior and one s own behavior does not produce expected resuts. He/she wi find that the environment makes new demands for which he/she has neither ready-made answers nor the abiity to deveop new and cuturay appropriate responses. Resistance- In this stage, to overcome the difficuty of adjustment and adaptation, expatriate uses a physica and psychoogica resources to meet the environmenta demand and to reduce the discrepancies. Exhaustion- If the expatriate is abe to adjust in the host country s cuture; it eads to effective performance and increased productivity. Otherwise, he/she wi be unabe to adjust to the host country s cuture and fee exhausted and ooses interest in work and competing the assignment and tries to come back to the parent country. Stressors in Expatriate Assignment In spite of the training given in the parent country, when the expatriate actuay ands in the foreign country, there are various factors causing stress ike unfamiiarity of the foreign pace, the peope, and the doubts of acceptance by the host country and the reationships with the boss or subordinates, etc. which graduay affect his/her performance in the assignment. Some of the probems are mentioned beow. Job-reated Stressors Cutura adjustment/shock: Cross cutura adjustment is adjustment of expatriate with the job, host country nationas, and to genera work and non work environment (Back, Stuart, and Stephens, 1989). Most of the effective goba managers often suffer the most severe cuture shock which is a natura response to the stress of immersing onesef in a new environment. Yavas and Bodur (1999) reveaed that the foowing persona characteristics are exhibited by we adjusted expatriate managers: being cuturay prepared for assignment being a cuturay sensitive person abiity to recognize compexities in host nationas iking to mix with host nationas 90
Dehi Business Review X Vo. 8, No. 1 (January - June 2007) Knowing about the assignment Pre-aarm Stage Undergoing training ike Cross-cutura training Language training Pre-departure training Job training Strategic training Traveing to foreign destination Arriving Aarm Stage Cutura shock Acceptance by the host country Language barrier Separation from famiy Unfamiiar peope Resistance Stage Tries to adjust in cross-cutura situation Maintaining reationships with the parent country Contacting famiy Making friends Exhaustion Stage Abe to adjust (Eustress) Good performance Increased productivity Good inter persona reationships Not abe to adjust (Distress) Dropping the assignment Coming back to the home country Low performance Low productivity Figure 1: Different Stages of Stress Process of an Expatriate being reaistic in one s expectations wiingness to accept the chaenges of inter cutura experiences enjoy socia interactions having empathy for others effectiveness at resoving conficts, and being a peope person Job/Task characteristics: According to Yavas and Bodur (1999) job/task characteristics and organizationa variabes are aso beieved to affect expatriate adjustment ike roe ambiguity/ roe carity, roe discretion (Back, 1988;1990), roe overoad and roe novety (Back, 1988) and organizationa cuture and size (McEvoy and Parker, 1995). 91
V. Baa Koteswari and Mousumi S. Bhattacharya Tension between parent and host country work set-up: Forma support systems that are provided by the organization might be of particuar vaue to the expatriate manager who is facing short, intermediate, and ong-term stress associated with their foreign position. The eve of stress coud accumuate to a point where it woud be difficut, if not impossibe, for the expatriate manager to fufi their roe in the foreign assignment. Without such support, the expatriate manager may attempt to address the mounting stress in a number of ways eading to faiure or dropping of the assignment. Most expatriates beieve that accepting foreign assignments gives them an advantage over their coeagues in simiar positions in the home country. However, others fear that they wi suffer from out of sight, out of mind syndrome, and be eft out of important communication oops in the corporate office in parent country. Communication probems: The possibiities for communication and interactions are consideraby enhanced if managers are proficient in the anguage of the cuture in which an expatriate is operating (Abe and Wiseman, 1983; Mendenha and Oddou, 1985). An expatriate manager shoud be aware of the foreign country anguage despite which it forms a hurde for his/her existence. Fisher et.a. (2005) stated that foowing are the aspects of communication toughness: differences in the norms and rue for communication frequency of communication difficuty in earning the host country anguage ength of the foreign assignment mode of communication face to face or by phone or memo ony formaity of communication required Gender issues: Gender issue is a stressor particuary to women expatriates. Women expatriates have to be more resiient and resourcefu if they wish to be successfu in foreign cutures (Jacob, 2004). Women irrespective of their cuture face resistance by some men, when they try to advance in their careers. It is a fact that women expatriates have to be more skied and adjusting to foreign cuture than their counterparts. Bocked career progression: Majority of expatriates ack effective career management processes to support repatriation and may even face by-passed for promotions. Stah (2000) found that two thirds of expatriates identified repatriation and career issues, such as anticipated re-entry probems of ack of career panning as troubesome probems. Differences in Compensation: Substantia differences exist in the compensation of expatriates at the same eve in various countries. These differences in compensation practices ead to stress among expatriates. Quaity of superior-subordinate reationship: Quaity of work reationships act as a potentia stressor. Reationships between superiors and subordinates who are from different cutures form the significant aspect of muti-nationa organization effectiveness (Raston, Terpstra, Cunniff & Gustafson 1995; Vaught & Abraham 1992). Research by Deuga & Perry (1991) showed that subordinates who effectivey use infuence strategies can secure desired outcomes and resources from their superiors in the expatriate assignment. Persona Stressors Famiy issues: Famiy of expatriate aso experience stress simiar to cutura shock which the expatriate face. Adjustment of the expatriate spouse and famiy to host country may be potentia 92
Dehi Business Review X Vo. 8, No. 1 (January - June 2007) probem despite affecting the expatriate and may even ead to assignment faiure. Tung (1981) is of the opinion that ack of support from expatriate famiies may be responsibe for faiure in the assignment. Unike expatriate, his/her famiy doesn t undergo training which woud hep in their adjustment in host country. Especiay, the chidren find themseves strange in schoo and face unfamiiarity of the situations but, must cope with a socia traumas which can actuay cause extreme stress. Moving across vast oceans or between continents, far from famiy, friends, community, country aso creates a more deepy fet and unique kind of stress to the expatriates and their famiies. Dua-career coupe: The case in which an expatriate famiy is dua-career coupe and in which the spouse has eft a good job in the home country eads to stress in the coupe. Internationa reocations is one of the potentia stressor that affects various members of the famiy differenty. This is particuary evident in non-traditiona famiy configurations such as dua-career coupes (Harvey & Wiese, 1998). Psychoogica acceptance: The psychoogica acceptance of the expatriate in the host country is another difficut proposition eading psychoogica disorientation. The non- acceptance of the expatriate by the coeagues, boss, subordinates and the organization as a whoe is a potentia stressor for an expatriate. Managing Stress Among Expatriates Expatriate stress cost to both organization and to the individua. Hence, both organizations and the expatriates need to manage stress for organizationa and individua we-being. One of the best strategies that can be adopted by the organization may be choosing the right person for the foreign assignment. There exist differences in the effectiveness of coping strategies used across different countries. Expatriates can be active participants in their own adjustment processes, and their adjustment to new cutures rests as much on what they do to hep themseves and as on what companies do to assist them. The coping strategies of expatriates stress can be cassified into two types, organizationa coping strategies and individua coping strategies. Organizationa Coping Strategies The faiure of an expatriate can be disastrous to the organizations. In order to make the expatriate assignment successfu, organizations have to adopt some strategies and hep in decining stress among expatriates. The very nature of the expatriate seection process (e.g., different candidate poos for different situations) has significant impications for training, compensation, and other Human Resource Management poicies and practices integrated together form effective high performance work practices (Huseid, 1995; Huseid, et.a. 1997) for goba managers. Foowing are some of the strategies which organizations can impement to over come the expatriate stress. (1) Promoting interaction with the host country nationas: Interpersona contacts with the host country nationas teach the expatriate how to behave and act during the assignment. Thus, when expatriate is sent for the assignment to the host country, he wi be better adjusted and wi be ess frustrated by the cutura difference compared to the expatriates who are isoated and who have ess communication with the host country nationas (Hanvey, 1979; Semer, 1999). (2) Not etting the expatriates discouraged in the eary days of the assignment: Eary decine in satisfaction and discouragement of the expatriate eads to oss of confidence and abiity to succeed in the assignment. According to Lazarus and Fokman (1984), expatriate if stays in unhappy stage is ess ikey that he/she wi ever adjust. Therefore, it is essentia to hep expatriates to manage stress in the eary stages of their assignment to avoid discouragement. (3) Heping hand from HR professionas: HR professionas having an intimate knowedge of 93
V. Baa Koteswari and Mousumi S. Bhattacharya host countries, their customs, anguage, cost of iving, education aternatives and spouse empoyment opportunities, etc., can hep the expatriates in overcoming the probems in the host country. Swank (1995) found that Ford uses internationa human resource teams with oca representatives, to conduct assessments and prepare expatriates for their overseas assignments. (4) Testing the personaity of the expatriate: Expatriate agreeabeness, indication of coaboration, sincerity, respect and empathy for others, may promote showing toerance and patience as we as soving probems responsiby. Conscientiousness and emotiona stabiity may show expatriate toerance to stress. Inteectua openneness shows the cutura acceptance, fexibiity to the cuture and open-mindedness. Hence the personaity of the expatriate need to be tested before seecting him/her for the assignment. (5) Seection of the candidates: Seecting candidates with professiona competence, and who is a ow risk for being abe to adjust to another cuture is another important issue. Screening candidates for expatriate assignments so as to care enough to send ony the best quaified, both in the job requirements, and in their being abe to adjust to the host cuture. Stone (1991) gave the foowing criteria used by the companies for expatriate seection: abiity to adapt, technica competence, spouse and famiy adaptabiity, human reations ski, desire to serve overseas, previous overseas experience, understanding of host country cuture, academic quaifications, Knowedge of anguage of country and understanding of company cuture. (6) Pre-assignment orientation: Pre-assignment orientation for the expatriate is essentia. Aeppe (1996) found that European companies such as British Petroeum, ABB Uniever, Vokswagen and Bayer AG operate regiona assessment centers comprising both host country representatives and speciaists to seect and orient expatriates. (7) Organizationa Training strategies to cope with expatriates stress: Psychoogists have proposed two approaches to cope with expatriate stress: Symptom-focused strategies and probem-focused strategies (Lazarus and Fokman, 1984; Fokman and Lazarus, 1980). Symptomfocused strategies are used to diminish emotiona distress by attending to behavior and expression, physioogica disturbance, subjective distress, or a these. Probem-focused coping strategies are efforts to take constructive action to change the situation creating the stress and address the probem and minimize the anxiety and distress (Fokman, Lazarus, Dunke-Schetter, DeLongis and Gruen, 1986). Expatriates who use the probem-focused coping strategy wi be abe to cope better with the stress than the symptom-focused coping strategy. Hence expatriates shoud be trained in using the constructive coping strategy. Figure 2 expains the two types of strategies, which an organization may adopt in its training modue. (a) Pre-departure training programs: Pre-departure training programs administered by the parent company can ease the transition of the expatriates and faciitate expatriate adjustment to amenities, genera iving conditions and socia interactions (Yavas and Bodur, 1999). Expatriate shoud undergo the foowing training programs and counseing sessions before eaving the parent country: Knowing and exporing the expectations, concerns of each member in the famiy Managing reationships across gobe Briefing the cuture of the host country Teaching effective communication styes Providing insight of stress management strategies Teaching expatriate how to work in teams and to manage conficts 94
Dehi Business Review X Vo. 8, No. 1 (January - June 2007) Probem-focused Coping strategy - Constructive Expatriate Adjustment Physica Psychoogica Emotiona Cutura Patience Toerance to stress Soving the probems Minimize anxiety Symptom-focused Coping strategy - Destructive Dropping the assignment Running away from the host country Figure 2: Organization Training Strategies to Manage Expatriate Stress (b) Cross-cutura training before and after arriva in the foreign country: Imparting cutura training to the expatriate before and after arriva to the foreign country fosters an appreciation for the host country s cuture. This workshop heps in providing basic information about the host country and parent country organizations. However, this training shoud focus on chaenges before expatriates in adjusting to the host cuture ike steps one can take to progress through the process of cutura adjustment, carefu examination of cuture shock and how expatriates can dea with it effectivey. (c) Language Training: Despite the prevaence of Engish, an excusive reiance on the same diminishes an expatriate manager s abiity to interact with host country nationas. Knowedge and fuency in oca anguage enabe expatriate to understand and communicate effectivey. Expatriate shoud be definitey trained in the foreign anguages in view of the future need. (d) Practica Training: Practica training is aimed at heping the expatriate and his/her famiy ease themseves into day-to-day ife in the host country. (e) Job training and Strategic training: Job training heps the expatriate in new operationa skis or supervisory skis that are needed in foreign assignment and strategic training heps in giving a big picture of the goba business strategy of the organization (Fisher et.a. 2005). (f) Training oca supervisors: Companies which are successfu in assimiating non-natives into their workforces provide training not ony to the expatriates but aso to their oca supervisors (John and Roberts, 1996). (g) Management Deveopment Programs: Management deveopment programs can be designed to increase the overa ski eves of expatriates through a mix of ongoing management education and rotations of expatriates through a number of jobs within the firm to give them varied experience. Management deveopment programs can be often used as a strategic too to buid a strong unifying cuture and informa management network which support transnationa and goba strategy. (h) Coaching and Mentoring: Coaching and mentoring expatriates is a vita organization coping strategy (Jacob, 2004; Edward, 2000). Coach has to know the expatriate s desired outcomes and hep in improving the eve of performance. In the process, undeveoped potentia of the expatriate 95
V. Baa Koteswari and Mousumi S. Bhattacharya wi be assessed. In order to make expatriates we anchored in the broader organization, and to prevent professiona isoation each expatriate can be assigned to a mentor who periodicay touches base and provide information about the events at the home country and the head office, as we as advice expatriate in career deveopment. (8) Organizationa support at the new ocae: The host country organization shoud provide the necessary support to the expatriate emotionay, physicay and psychoogicay. (9) Repatriation programs: A argey overooked but critica and important issue in the training and deveopment of expatriates is to prepare them for re-entry into their home country organization. To hep expatriates focus their energies on their foreign assignments, organizations need to create repatriation programs as we. The Human Resource Management function shoud deveop a good program for re-integrating expatriates back into work ife within their home country organization. And can aso utiize the knowedge expatriate had acquired whie abroad. (10) Coaching on career progression: Expatriate training programs shoud incude career impications and repatriation concerns. The parent company shoud ceary expain the expatriates the career vaue of the foreign assignment and discuss the career track foowing the repatriation. Expatriates shoud be made aware of where an internationa assignment fits into their overa career pattern. If the expatriate thinks that the internationa assignment is a signa of important change in their career he/she may be highy motivated, committed, more invoved and may work whoeheartedy in their new roe and this can further hep the expatriate to take initiatives in the host country eading to effective performance (Semer, 1995; Naumann, 1992). (11) Knowing the famiy circumstances: Thorough knowedge about the expatriate famiy circumstances, commitments, and famiy adjustment capabiities by the parent country organization is essentia before seecting and sending the expatriate for the foreign assignment, which wi hep in reduction of the faiure in the assignments. (12) Keeping Expatriates we connected with the parent country: The parent country organization shoud accept some responsibiity for ensuring that the expatriate famiies are happy in the host country and the expatriates themseves shoud remain we connected to the parent country organization. (13) Proper compensation practices: Equaizing expatriate pay on a goba basis to reduce the substantia difference in the pay. Substantia differences exist in the compensation of expatriates at the same eve in various countries. These differences in compensation practices create dissatisfaction and distress in the expatriates. The firm shoud pay executives in different countries according to the prevaiing standards in each country, or shoud equaize pay on a goba basis. Individua Coping Strategies (1) Appropriate coping strategy: Expatriate can adapt individua coping strategy to over come stress. Stah (2000) found that the coping strategies can be cassified into four categories according to expatriate adaptive function in an internationa assignment: a) task-oriented strategies, such as pannned probem-soving and impementing organizationa change; b) earning and adjustment strategies, such as modifying inaccurate expectations and earning more about the cuture; c) interpersona strategies, such as reationship buiding and seeking task hep; and d) avoidance and defense strategies, such as ethnocentric behavior withdrawa. The findings of this study further reveaed that the cutura distance is a critica determinant of how expatriates dea with the probems that they encounter overseas. 96
Dehi Business Review X Vo. 8, No. 1 (January - June 2007) (2) Learning how to behave: Expatriates shoud thoroughy observe, discretey inquire and shoud try to earn what principes are ying beneath behaviors of the host country nationas which at first may appear to be unusua. This can pertain to such actions as whether to bow, shake hands with the one you meet, etc. By earning to appreciate the cutura norms of the host country expatriates wi be abe to adjust to the host country cuture. (3) Spouse support: Spouse support and adjustment can hep the expatriate as a great stress reiever. Adjustment of the spouse predicted the expatriates intention to remain in the internationa assignment (Semer, 1999). (4) Exercising: Reguar physica exercise, some practice of meditation and reaxation techniques can hep in reieving expatriate stress. (5) Recreation: Recreationa activities ike watching movies, istening to music, etc. can be taken according to expatriates interest to reieve stress. Concusion To minimize adverse consequences associated with expatriation, successfu management of expatriation process need to be adopted with the hep of carefu human resource management strategy such as seection, training, compensation, etc. which has been discussed in the earier sections. It is aso suggested that effective use of individua and organizationa strategies may reduce the possibiities of stress among expatriates. At the organizationa eve, pre and post departure training, anguage training cross-cutura training are needed to be impemented and they shoud be reguary monitored. At the individua eve, expatriates shoud be supported by the famiy and friends. References Abe, H. and Wiseman, R.L. (1983) A Cross-Cutura Confirmation of the Dimensions of Intercutura Effectiveness, Internationa Journa of Intercutura Reations, Vo.7, No.1, p.53-67. Aeppe, T. (1996) Westinghouse Now is Charting an Uncertain Course, Wa Street Journa (13 Nov). Back, J.S. (1988) Work Roe Transitions: A Study of American Expatriate Managers in Japan, Journa of Internationa Business Studies, Vo.19, No.2, p.277-294. Back, J.S, (1990) The Reationship of Persona Characteristics with the Adjustment of Japanese Expatriate Managers, Management Internationa Review, Vo.30, No.2, p.119-34. Back, J., Stuart and Stephens, G.K. (1989) The Infuence of the Spouses on American Expatriate Adjustment in Overseas Assignments, Journa of Management, Vo.15, p.529-544. Darby, M. (1998) Heath Risks of Overseas Business Trave, B&H Specia Report, September, p.23-26. Deuga, R.J. and Perry, J.T. (1991) The Reationship of Subordinate Upward Infuence Behavior, Satisfaction and Perceived Superior Effectiveness with Leader-Member Exchanges, Journa of Occupationa Psychoogy, Vo.64, p.239-252. Edward, H. (2000) Expatriate Managers Learning to go the Distance, Director, December Issue. Fisher, C.D., Schoenfedt, L.F. and Shaw, J.B. (2005) Human Resource Management, Fifth Edition, Biztantra Pubications. Fokman, S. and Lazarus, R.S. (1980) An Anaysis of Coping in a Midde-Aged Community Sampe, Journa of Heath and Socia Behavior, Vo.21, p.219-239. Fokman, S., Lazarus, R.S., Dunke-Schetter, C., DeLongis, A., and Gruen, R.J. (1986) Dynamics of a Stressfu Encounter: Cognitive Appraisa, Coping, and Encounter Outcomes, Journa of Personaity and Socia Psychoogy, Vo.50, No.5, p.992-1003 Hanvey, R.G, (1979) Cross-Cutura Awareness, p.46-56 in E.C. Smith and L.F. Luce (Eds.), Toward Internationaism Rowey, MA: Newbury House. Harvey, M. and Wiese, D. (1998) Goba Dua-Career Mentoring: A Phase Mode Approach, Human Resource Panning, Vo.21, No.2, p.33. 97
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