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Cultural Influences on Expatriate Managers'
Success and Failures
I. Executive Summary
Due to a rapid increase in internationalization of business, leading corporations around the world have had to turn their attention to international business in order to maintain a competitive edge in today's dynamic economic scene. However, doing business outside ones' own country proves to be a difficult task if not prepared on how to interact with the host's different culture. To set aside these difficulties, companies must be diligent on their management of cross-national assignments.
As market boundaries across the world continue to dissolve, and the international business involvement of companies continue to increase, cross-national career assignments are becoming essential to the vitality and growth of many companies (Guzzo, 1994). Companies are increasingly taking international assignments and working overseas in order to maintain their competitive edge. As a result, the need for well-qualified executives who are willing and able to be managers abroad is also increasing (Guzzo, 1994). However, not everyone who has been successful as a manager in one country can be successful in another: it takes a person with a unique set of characteristics to succeed as a manager in diverse foreign environments (Phatak, 105).
In selecting employees for overseas assignments, both technical and human criteria should be considered. Firms that fail to consider both often find that their rate of failure is quite high. For example, Tung investigated both U.S. and Japanese companies and found that many of the U.S. firms had poor success in choosing people for overseas assignments. The Japanese firms, meanwhile, were quite successful as a result of their selection process. The primary difference between the two groups was that the Americans tended to focus most heavily on technical considerations, whereas the Japanese also considered behavioral or relational skills of the employee such as the ability of the manager to deal with clients, customer, superiors, peers, and subordinates (Asakawa, 1995).
Surveys were conducted with multinationals to understand the reasons for the expatriate success and failure rate. One such survey compared sixty-four firms from U.S., European and Japanese currently working on a multinational basis. Of the these firms surveyed, U.S. expatriates had higher expatriate failure (32%) while the Japanese had the least expatriate failure (14%). The Europeans had approximately 21% failure rate compared to the U.S. and Japanese (Guzzo, 1994). Common characteristics of the three nationalities, but mostly for the U.S. firms, for a successful performance were: 1) long-term orientation with regard to total planning and evaluation of performance, 2) use of more rigorous training programs to prepare candidates for overseas assignments, and 3) overall qualification of candidates for assignments abroad. Additional factors to the above which enhanced European success were: 1) international orientation, 2) longer history of overseas operations, and 3) language capability. In Japanese firms, characteristics which accounted for lower failure rate, in addition to the above, consisted of the expatriates' spouse and/or children feasibility to adapt to other culture (Asakawa, 1995).
The purpose of this paper was to explore the possible factors that may contribute to expatriate success or failure. Companies should be selective as to whom they send overseas. "Being sensitive to cultural differences and nuances is just one aspect of overseas assignment" (Hayes, 98). Thus, international awareness training could be critical for expatriate employees. Employees should be given cross-cultural training on a country-specific basis before they leave, and the spouse and children should be involved in this process as well.
II. The Expatriate
One of the most significant economic development since the Second World War is the increasing internationalization of business. Although business has been conducted across national boundaries for centuries, during the last three decades business dealings have accelerated on a global scale. Corporations, whether small or large, around the world have increasingly turned their attention to international business in order to maintain a competitive edge in today's dynamic economic scene (Hofsted, 1984).
Doing business outside one's own country can be demanding and complicated. To set aside difficulties that may develop, one must consider the simple fact that business environments of each country are different. These differences require international managers to have "good analytical abilities and sound business intelligence" and other skills in order to make viable decisions and operate successfully (Geer, 127). More companies believe that if they do not have managers with global skills, they will lose the competitive edge. Therefore, each year more and more multinational companies are increasing the number and types of executives and managers they are recruiting and selecting for foreign assignments. They have discovered that having the right people, in the right position, at the right location is the key to international success and decreases the risk and cost of expatriate failure (Maynihan, 97-102).
For example, if an organization were to send an expatriate employee to Saudi Arabia for a marketing position, the firm must consider choosing a young male candidate to work in an "all male business atmosphere" and who is not only knowledgeable in the field of marketing but also who has the motivation and feasibility to adapt to a different culture. If a woman were sent, there is a greater chance of failure since women are not given much credit or respect in the working environment in Saudi Arabia.
Studies made by Charlene Solomon ("Success", 1994) indicate that expatriates will fail unless certain needs are addressed prior to expatriates departure. Most experts agree that 20% to 25% of all assignments fail. In addition, Solomon makes reference to a 1992 survey of 50 Fortune 500 companies made by International Orientation Resources (IOR) in which they concluded the majority of the time - about 90% - businesses select employees for overseas assignments not for their cross-cultural fluency, but for their technical expertise.
Expatriate assignments do not really fail because the person cannot accommodate to the technical demands of the job. On the contrary, the expatriate selections are made by line managers based on technical competence. As a matter of fact, they are the considered the "pick of the liter". Expatriate assignments fail because of family and personal issues and lack of cultural skills that are not part of the process in preparing the expatriate to go work overseas (Solomon, "Success"). Experts define failed assignments as either employees who return to the their home country prematurely or expatriates who are unable to achieve the company's business objectives (Hayes, 1996).
Whenever the expatriate fails on an assignment abroad, it can be costly for the company. Expatriate failure can "affect the company's reputation in the international arena and the moral of the expatriate and other staff members within the company" (Phatah, 117). Indeed, many small companies report that up to 40 percent of their personnel sent abroad return to the domestic office prematurely for various reasons, including inability for the manager and family to adapt to the new culture. Meanwhile, a single failed assignment can cost a company more than $150,000. Taking into effect the return home, the damage to expatriate's and company's moral and reputation and the loss of the business can cost well over a quarter of million dollars (Richardson, 1992).
In order for a U.S. multinational company to maintain global leadership, it must require expatriate managers be knowledgeable about internal conditions of the company and the country they are going into, be proficient in the language of the host country, and be more capable of functioning abroad with professional skills and cultural sensitivity.
Organizations responsible for sending managers abroad should be careful in their recruitment and selection of their own nationals. Selection of personnel for overseas assignments is crucial to the success of the company, and one must establish adequate selection criteria and to adapt the criteria carefully to ensure that the right person is chosen (Solomon, "Global", 1994). The organization is responsible to ensure their representative is not only technically qualified, but also psychologically suitable and ready.
If the wrong person is chosen to work overseas, he or she may experience culture shock and, as a result, failure would be certain. Culture shock is "a psychological disorientation caused by misunderstanding or not understanding the cues from another culture" (Hall, 224), and it is the result of the expatriate's lack of and, as a result, failure would be certain. Culture shock is "a psychological disorientation caused by misunderstanding or not understanding the cues from another culture" (Hall, 224), and it is the result of the expatriate's lack of and, as a result, failure would be certain. Culture shock is "a psychological disorientation caused by misunderstanding or not understanding the cues from another culture" (Hall, 224), and it is the result of the expatriate's lack of and, as a result, failure would be certain. Culture shock is "a psychological disorientation caused by misunderstanding or not understanding the cues from another culture" (Hall, 224), and it is the result of the expatriate's lack of and, as a result, failure would be certain. Culture shock is "a psychological disorientation caused by misunderstanding or not understanding the cues from another culture" (Hall, 224), and it is the result of the expatriate's lack of knowledge, limited experience, and the inability to be flexible. In order to minimize the dysfunctional effects and maximize the opportunities of another cultural experience, organizations must make careful selections. Mamman and Richards (1996) identified several criteria required for managers in overseas assignments to adapt without difficulty: Self-orientation, which includes technical competence, physical mobility, ability to deal with alienation and isolation, motivation, and stress reduction; Others-orientation includes relationship skills, willingness to communicate (language proficiency), ability to understand or practice non-verbal communication, be respectful towards others, possess cultural empathy and sensitivity; and Perceptual- orientation which includes flexible attributes, high tolerance for ambiguity, open- mindedness and non-judgmental, and exhibit field-independence or prior experience. Also, one must not forget another very important factor criteria -- family adaptability and stability (Hall, 227).
Under self-orientation, technical competence seems to be the main focus of companies normally evaluate and base their decisions upon the manager's technical skills. Companies believe that since the managers are technically competent in the home office, they will more than likely be as competent abroad. This is not the case. Although an expatriate possesses extensive managerial and technical skills, he or she might not possess "good people skills". This type of personality will not make it in certain cultures. Nevertheless, more and more companies are beginning to understand that although technical competence is an important criteria, certain types of persons are more likely to perform better in overseas assignments than other (Richardson, 32). Managers need to be able to withstand culture shock, able to work in a foreign environment, and able to deal with alienation and isolation.
III. Factor for Expatriate Failure
Given the outburst of cross-cultural obstacles that every expatriate must confront, it is not surprising that many expatriates fail to complete the full term of their overseas assignments. International awareness training could be critical for expatriate employees. It has been estimated that between 20 to 50 percent of personnel sent abroad return prematurely from their overseas assignment. The financial cost per such premature returns are significant. The average cost per failure to the parent company has been observed to range between $55,000 to $150,000 (Bammer, 147). Common mistakes workers make while in other countries are discussed in the following paragraphs.
Most U.S. managers are sent on overseas assignments without the proper training programs concerning current host country's customs/norms and conditions. This leaves the expatriate and even his or her family not prepared to function and adapt to local customs (Frazee, 1996). Despite the existence of such programs, the problem of expatriate failure and premature return continues to plague multinational companies. The human resource divisions in MNCs consistently overlook key criteria that are necessary of overseas success. A number of studies (Tung,1981) report a marked deficiency on the part of U.S. firms in offering comprehensive cross-cultural skills training to employees and their families prior to their overseas assignments. A majority of companies do not provide any preparatory training for managers and employees destined to work overseas. Tung (1981) found that of the MNCs in her study only 32% of the firms offered formal training programs to prepare people to live and work overseas; 68% of the companies offered no training at all. Tung's studies suggest that top managers do not support cross-cultural training because they believe it is neither effective nor necessary. Other multinational companies offer the following reasons: too few number of expatriates (31%), degree of cultural differences does not justify orientation (17%).
Other studies also confirmed that personnel sent abroad from many international companies, returned to their home office before their assigned date. U.S. multinational companies typically plan the overseas assignment to last between two to three years. The Japanese and European multinationals typically plan the assignments to last three to five years (Maddox, 109). This poses a problem in which American expatriates are unable to adapt to the new culture in such a limited time period and are hurried to return home. This is a result from the American culture in which Americans what things done right away. Unlike Japan, it takes time to know the person and then do business.
Expatriate managers who fail is a result of not being able adapt to cultural changes. These expatriates are mostly judgmental and not open-minded which prohibits them to understand or accept foreign behaviors without stereotyping or prejudice. A failed expatriate manager is ethnocentric and expects business to be conducted the "American Way"; they fail to recognize people are different (Lobel, 1990).
Many cultures do not have the same style of getting right down to business and many do not place the same emphasis on the value of work. In many cultures, it is customary to establish a personal relationship before you do business. Thus, the expatriate must know how to conduct business in other countries (Osland, "Adventure"). For example, American expatriates experience problems when conducting business in Japan. The American is used to arrive at the meeting, make a quick introduction, work vigorously on the agenda and then conclude the meeting. If necessary, the meeting can be continued at another time. In Japan, however, before conducting any business negotiations, the Japanese like to know they are dealing with first. In order to do this, the "guests" are treated to lunch or dinner. Once they know the person, business is then conducted.
Many expatriate managers react negatively to host country's customs. In order to be a successful expatriate, he or she must let go of his or her basic cultural assumptions and take on the internalized values of the other culture. Many failed expatriate managers maintain their own frames of reference and do not create new frames of reference for the host country. Thus, they begin to make negative comparisons with things at home. American expatriates are not looked well upon if they begin to "brag" or compare customs to that of the U.S. Failed expatriates do not take on new roles but keep the accustomed roles and status appointed to them. They do not acknowledge that their home country's behavior/customs is not always effective in other cultures, thus, they maintain themselves to the home country's norms and fail to make the adaption (Osland, "Working").
Expatriates take for granted that the person speaking English does indeed understand English very well. However, this is not the case especially if slang, jokes, idioms and the like are used. They do not always translate very well. Although companies look for international experience in expatriate managers, not all managers with international experience is suitable for all overseas assignments. The manager's experience shows that the manager has the knowledge and required skills necessary for foreign assignments. However, all countries and their cultures are different. If the
expatriate has previously been to the targeted country, the better. The manager would already know the basics of the language and culture of the host country (Lobel, 1990).
In addition to the above common mistakes made by expatriates which lead to failure is as the result of lake of training, expatriates misinterpret non-verbal cues communicated by the host nationals. Such non-verbal communications includes eye contact, space (proximity), and body language (Osland, "Adventure"). For example, an American walking into an office is accustomed to smile say "hi" to the other co-workers. However, in Mexico, it is customary to not only smile and say "hi" but also shake hands and make conversation with the other person. This shows a closeness between the parties. An American may offend or hurt a Mexican national if he failed to understand the non-verbal cues necessary to succeed in working in Mexico.
Family difficulties in adapting to the foreign culture and other family related problems are also top reasons for expatriates' failure in a foreign assignment. If the family is having trouble adapting to the different culture, it can affect the moral and performance of the expatriate and increase stress. One must also look at whether or not the spouse has a job because if the expatriate is sent overseas, the company might need to relocate and employ the spouse too (Solomon, "One"). Another family criteria Solomon ("One", 1996) identifies companies require is there be family cohesiveness and stability and must not show signs of instability . A spouse and family who are as committed to the move overseas as the candidate is ideal. A spouse who has outside interest, solid ethical standards and is also flexible enough to calmly deal with the many decisions and complexities that are sure to arise during the family's stay overseas is more likely to adapt well to the different culture (Solomon, "Success").
IV. Factors for Expatriate Success
More Companies are beginning to understand that certain types of persons are more likely to perform well in an overseas assignment. Choosing someone for an overseas assignment depends upon international selection criteria, which are factors used to choose personnel. Some selection criteria are given a great deal of weight; others receive, at best only lip service. In order to avoid premature return of an expatriate manager, multinational companies have instituted overseas allocation programs. The purpose of these programs is to: 1) select for overseas assignments employees who, because they possess certain skills that are critical to cross-cultural success, reflect a high probability of being effective expatriate employee; and 2) provide training for these candidates in cross-cultural skills that will enable them to anticipate and deal effectively with problems that are unique to the overseas employee (Hofstede, 277).
According to a survey (Flynn, 1995) conducted by Boulder Colorado-based Prudential Relocation Intercultural Services, the key to overseas excellence is cross-cultural adaptability(35%). Job, technical and management skills are next in importance (22.2%). Other factors listed as key to the success of an overseas assignment are as follows: family stability and adaptability (16.2%), good job/role planning support (5.4%), assignee enthusiasm (3.1%), social and interpersonal skills (3.1%), adequacy of compensation package (1.8%), language skills (1.8%), assignee spirit of adventure/willingness to take risks (1.8%), communication skills (1.2%), other factors (8.4%). Both technical and human criteria should be considered. Firms that fail to consider both often find that their rate of failure is quite high. For example, Tung investigated both U.S. and Japanese companies and found that many of the U.S. firms had poor success in choosing people for overseas assignments. The Japanese firms, meanwhile, were quite successful. The primary difference between the two groups was that the Americans tended to focus most heavily on technical considerations, whereas the Japanese also considered behavioral or relational skills such as the ability of the managers to deal with clients, customer, superiors, peers, and subordinates
(Asakawa, 1995). Other more specific commonly used criteria in choosing managers for a successful assignments overseas are as follows.
Technical, Managerial and Diplomatic Skills. The expatriate manager, of course, must have the technological know-how in order to explain the functions of the product as well as be able to effectively implement managerial concepts. An effective expatriate must also be able to deal with others effectively. The manger should be a skilled negotiator and must be able to represent the company - effectively defend and support the company's point of view (Hall, 96-97).
Cultural Empathy. This refers to the awareness of and willingness to study the reasons people of another culture behave the way they do (Harris, 96). Expatriate managers must be sensitive to cultural differences. Cultural empathy shows that the manager is tolerant towards foreign cultural patterns (Hebard, 1996).
Adaptability to Cultural Change. Overseas managers must be able to adapt to change, to new circumstances and situations and to respond flexibly to different views and ideas (Phatah, 114). Research shows that many managers are exhilarated at the beginning of their overseas assignment. However, after a few months a form of culture shock creeps in, and they begin to encounter frustration and feel confused in their new environment. One analysis noted that many of the most effective international managers suffer this cultural shock. This may be a good sign, because it shows that the expatriate manager is becoming involved in the new culture and is not just isolating himself or herself from the environment. As the initial and trying period comes to an end, an expatriate's satisfaction with conditions tends to increase (Maddox, 117). If the expatriate lacks in cultural empathy, it will be difficult for the expatriate to be adaptable and flexible.
Language Aptitude. One recognized weakness of many U.S. multinational managers is that they do not give sufficient attention to the importance of language training. English is the primary language of international business, and most expatriates from all countries can converse in English. However, those who can speak English only are at a distinct disadvantage when doing business in non-English-speaking countries. Not every country understands English (Phatah, 115). One study asked 1100 Swedish expatriates how satisfied they were with knowledge of the local language. These managers expressed particular dissatisfaction with their understanding of Japanese and Middle Eastern language (Torbiorn, 128).
Traditionally, Americans have done very poorly in the language area. For example, a survey of 1500 top managers worldwide faulted U.S. expatriates for minimizing the value of learning foreign languages. However, executives in Japan, Western Europe and South America placed a high priority on speaking more than one language (Hebard, 1996). "In Japan, for example, more than 20,000 Japanese who work in the U.S. speak fluent English. Only 200 Americans working in Japan can claim to speak Japanese fluently when they go over" (Hebard, 1996).
Motivation. Although individuals being sent overseas should have a desire to work abroad, this is usually not sufficient motivation. International management experts contend that the candidate must also believe in the importance of the job (Phatah, 115). Managers who are unhappy with their current situation at home and are looking to get away seldom make effective overseas managers. Desire for adventure or a pioneering spirit are acceptable reasons for wanting to go overseas. Other motivations include: desire to increase chances for promotion and the opportunity to improve one's economic status (Harris, 214). Expatriate managers must be motivated in a positive manner in order to enjoy working abroad (Lobel, 1990). One must be interested in overseas experience to develop global skills, have a sense of adventure, desire to learn a foreign language, or desire to have the opportunity to experience new & different cultures. This motivation is mostly displayed in younger managers who tend to be more "worldly" (Torbiorn, 152). Other criteria include: empathy, sensitivity and respect for others. An
expatriate should display strong, sound social judgement and sensitivity to cultural differences to avoid insults or misuse of words. Expatriate managers must understand and resect that each country has its own way of life, traditions, and culture (Harris, 229).
Adaptability of Family. Solomon ("One", 1996) speaks of another overlooked feature in the selection process for overseas personnel is the adaptability potential of the spouse and other family members. Spouses and family are an important consideration when choosing a person for an overseas assignment. Each family has specific circumstances that will impact on the decision. A spouse or family member who is undergoing severe culture shock and/or selecting inappropriate behaviors to deal with the stress of relocation, affects the morale and performance of the expatriate manager. If the family is not happy, the manager often performs poorly. In a survey of 80 U.S. managers assessing the reasons for expatriate failure, the number one was the inability of the manager's spouse/family to adjust to a different physical or cultural environment (Tung, 1987). At the time of expatriate selection, spouses and children should be screened on the criteria as well. Studies that looked at the family as an important variable in the selection process reported that 40% to 52% of the firms studied interviewed the candidate's spouse (Solomon, "One"). For this reason, some firms interview both spouse and manager before deciding whether to approve assignments. Multinational managers have learned that an unhappy expatriate will be unproductive on the job and the individual will want to transfer home long before the assignment is complete.
V. Global Blunders
Cultural differences are the most significant and troublesome variables encountered by the multinational companies. The failure of managers to comprehend fully these disparities has led to most international business blunders.
One of the most common problems is the cultural values which differ between countries, such as time, proximity, time, non-verbal messages, etc. Americans doing business in Mexico or in Asian countries must be aware of the concept of time and
other norms. For example, an American and Mexican conducting a meeting in Mexico will tend to proceed the "American Way": goes to the meeting, makes a quick introduction, vigorously works on the agenda and then concludes the meeting. In Mexico, they prefer the more "relaxed" style. First of all, the customs must first get to know the persons they are dealing with. This could take several days or weeks before actually getting down to the business issues (Solomon, "Success").
Expatriate managers in the U.S. are at higher risk of failing an assignment overseas for the reason that U.S. MNCs pick the managers based on their technical know-how. The Japanese, on the other hand, take into consideration the technical know-how as well as placing a high emphasis on family adaptability (Tung, 1981). Research conducted by Tung (1981) has shown that Japanese are more adaptable because they are brought up learning to be cooperative with others and work as a team ("team concept"). The Americans, on the other hand, are brought up learning to fend for themselves, become an individual. Thus they carry a competitive characteristic which makes it harder for Americans to adapt.
Such failures to understand cultural differences can bear serious consequences. Following are some example of international blunders which could have been avoided if the expatriate managers and their family had more rigorous cross-cultural training.
For example, a Midwest financial service firm placed most of their emphasis on the candidate's technical skills during the selection process and they overlooked other critical criteria needed. They sent their top marketing manager to Japan to be in charge of marketing. He was a successful executive in the home office with an aggressive and direct style of leadership. However, he failed to develop good relationship skills with his Japanese co-workers and clients because he did not possess cultural empathy ad other criteria necessary. As a result, he returned home in less than one year (Ricks, 38).
Another example of global blunders was illustrated when an expatriate of a well-known international law firm was selected for an overseas assignment in Hong Kong for a period of three years. Due to the spouse not being well prepared for the culture differences, the spouse was unable to adjust and as a result returned home after only 18 months and left the expatriate spouse behind. Spousal support is very critical and can mean the difference between the expatriate staying in his/her overseas post or demanding to come home (Ricks, 42).
Other examples can be seen in "The Case of The Floundering Expatriate". Argos Diesel Inc. sent their "best" qualified technical manager from Detroit who had international experience teaching in a foreign country. Although, he had the technical skill and international experience, not all cultures are the same. Thus, the company failed to evaluate Donaldson's cultural empathy and failed to provide cross-cultural training. Donaldson failed to be culturally sensitive to the Germans which resulted in low moral and distrust of the American.
VI. Recommendations for Success
Successful expatriation does not just happen - it requires a lot of planning and careful thought. Some overall recommendations in order to succeed in an overseas assignment are discussed in the following paragraphs.
Be culturally prepare. Multinational companies sending managers overseas should give a high consideration in providing their expatriate employee and their family rigorous training programs. This will allow them to know the culture, know how to function within the culture and how to adapt. Every company that sends employees on overseas assignments conducts a selection process; however, some companies are more effective than others in designing valid overseas personnel selection programs. Despite the importance of all of the criteria to overseas success, U.S. firms seem to focus their selection efforts on one single criterion, that of "technical competence." U.S. multinationals should adopt orientations that are more long-term and more international in outlook.
Companies should send overseas the employee most able to flexibly adapt to changing business environments, and not the employee who is the most technically knowledgeable (Solomon, "Global", 1994). "U.S. firms have a tendency to send the loudest, most aggressive employee, the one most lacking in social judgement," says Barry Kozloff, senior partner for Selection Research International (Delia-Loyle, 38).
Learn the language. Although, many international business people know the English language very well, one should not assume all countries know English. If one cannot learn the language in a specified time, the expatriate managers should consider getting an interpreter with bicultural business skills.
Mix with host nationals. In order to get a first hand view and understand the culture of how host nationals interact, it is best to mix or socialize with host nationals. Join a club, live in areas away from American or home country nationals, or do volunteer services.
Take risks. It is true with the saying: "Nothing ventured, nothing gained". If one does not take risks in trying something new, one will not be able to experience the different culture.
Be culturally sensitive and respect host's customs. Expatriates should display cultural empathy and accept the different cultures and customs of the host nationals. One should let go of their beliefs and stereotyping and accept the culture of the host country.
Be realistic in overseas assignments. Multinational companies must be aware that if sending an expatriate to an overseas assignment to Japan, for example, they must take into consideration that the company's objectives might not be accomplished within a limited time frame of 2 - 3 years. Since Japanese managers tend to take a longer time to make a decision plus the number of networks that must be contacted are significant.
VII. Conclusion Summary
The key to overseas excellence may be targeted to cross-cultural adaptability. Cross-cultural adaptability has been ranked above job skills in determining whether an employee will succeed or fail in overseas assignment. Multinationals should select employees who, in addition to technical skills, possess the characteristics, traits, attitudes and attributes required for intercultural effectiveness. Expatriates must be non-judgmental and open-minded in order to understand foreign behaviors without stereotyping or prejudice. Being open-minded means "one is not ethnocentric but recognizes people as different" (Lobel, 1990).
Companies should look for international experience in expatriate managers. It shows that the manager has the knowledge and required skills necessary for foreign assignments. If the expatriate has previously been to the targeted country, the better. The manager would already know the basics of the language and culture of the host country.
One main point to look at the time of selecting a candidate, companies should take in to consideration the expatriate's spouse and/or children. The accompanying spouse and family also must be evaluated as crucial members of the expatriate team. Companies need to provide cultural orientations for the employee's family. Since the spouse and children do not have a social or professional frame work in the new country, they may require even more support than the employee. Companies should consider spouse motivation, children's reaction and spouse/expatriate interaction.
Therefore, the selection of expatriates is a crucial decision faced by many
multinational companies. Companies must be diligent in their management of cross-
national assignments to select the best possible candidate that could work on an assignment abroad. By not being prepared, managers are not familiar with the host country's culture. Culture provides people with identity. Such characteristics of cultural norms may affect the expatriates goal in achieving a successful assignment.
The cosmopolitan manager, sensitive to cultural differences, appreciates a people's distinctiveness, and seeks to make allowances for such factors when communicating with representatives of that cultural group. He or she avoids trying to impose one's own cultural attitudes and approaches upon these "foreigners". Cultural understandings may minimize the impact of culture shock, and maximize intercultural experiences. For the manager it represents a new body of knowledge or a tool to increase professional development and organizational effectiveness with employees, customers, and other people encountered in the course of daily business. One must understand the concept of culture and its characteristics before a manager can fully l development and organizational effectiveness with employees, customers, and other people encountered in the course of daily business. One must understand the concept of culture and its characteristics before a manager can fully l development and organizational effectiveness with employees, customers, and other people encountered in the course of daily business. One must understand the concept of culture and its characteristics before a manager can fully benefit. In observing local cultural and social customs, managers can avoid common mistakes that may be devastating to the expatriate and company as well.
In conclusion, the ideal characteristics of an expatriate manager may be described as follows (Phatah, 113):
"Ideally, it seems, he or she should have the stamina of an Olympic swimmer, the mental agility of an Einstein, the conversational skill of a professor of languages, the detachment of a judge, the tact of a diplomat, and the perseverance of an Egyptian pyramid builder...
And if he or she is going to measure up the demands of living and working in a foreign country he or she should also have a feeling for culture, his or her moral judgements should not be too rigid, he or she should be able to merge with local environment with chameleon-like ease, and he or she should show no signs of prejudice..."