Idea Transcript
DOI: 10.31357/fmscmst.2006.00248
Factors contributing to Expatriates' Adjustment in International Assignments and their impact on Job Performance: An Empirical Study of Sri Lankan Expatriates' Adjustment
By P. Jayasekara (GSIMC/1 885/2001)
A Dissertation submitted to the University of Sri Jayewardenepura In partial fulfillment of the requirements of the degree of Master of Science in Management (Spe. FIRM)
M.Sc. (Management) Program Faculty of Graduate Studies University of Sri Jayewardenepura Sri Lanka April 2006
Certification
I hereby recommended the dissertation irepared under my supervision by P. Jayasekaia (GS/MC/1885/2001) entitled "Factors contributing to Expatriates' Adjustment in international Assignments and their impact on Job Performance: An Empirical Study of Sri Lankan Expatriates' Adjustment" be accepted in partial fulfillment of the requirements for the degree of Master of Science in Management.
t...... ... ..I... Pofi3ii.,.D.P Opatha Thesis Advisor
Approved by Examining Committee
CJ)YV ....... .. (7.mk!o6)
M.Sc. (Management) Program Faculty of Graduate Studies University of Sri Jayewardenepura Sri Lanka April 006
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II
ACKNOWLEDGEMENT I am infinitely grateful to my supervisor Prof Dr. H,H,N.D.P Opatha, Professor of Human Resource Management on Merit, Head of the Department of Human Resource Management, Director of the IRQUE project, and former Coordinator of the M,Sc. Management program, Faculty of Management Studies and Commerce, University of Sri Jayewadenepura for supervising my thesis in the midst of very busy work schedule. Further I would like to express my sincere indebtedness to my supervisor for his supervision, encouragement, and excellent support given to me throughout this program to make this work a success. I shall ever remember his kindness and patience towards me in giving support to enhance my knowledge in the field of Human Resource Management, and in helping me to make a success of my academic life and career as well. I would like to extend my gratitude to the present Coordinator Dr. Sampath Amarathunge, former Coordinator Dr (MS) Badra Arachchige, and my lecture panel of the M. Sc Program for giving me support to enhance my knowledge further in the field of Management.
My special thanks are forwarded to Librarians and Assistant Librarians of Ceylon Chamber of Commence and National Chamber of Commerce in Sri Lankan for supporting me to finalize the study sample and all Human Resource Managers in the relevant organizations who gave all the relevant information and support without reservation for me to find respondents.
I express my exclusive gratitude to all the respondents (Sri Lankan Expatriates) who completed the questionnaire and returned it on time to enable me to complete this study.
I express my appreciation to Ms. D.P.Aahangama, Mr Palitha, Mr. Suravimala, Mr. Sampath, Mr.Pubudu, and Mr. Kapila who genuinely supported and assisted me in many ways to make this endeavor a success.
And last but not least, my heartfelt thanks go to my husband and family members for their continued encouragement and support to do this task successfully.
in
ABSTRACT The world has become more competitive than ever. Thus explosive growth in globalization has led to a growing number of individuals with international assignments. This study was conducted to investigate the contribution of age, working experience, length of time spent overseas, managerial competence, selection practices, pre-departure training, role expectations, role ambiguity and
cultural sensitivity (independent
variables), to determine Sri Lankan Expatriates' adjustment in international assignments. At the same time this research was intended to measure the degree to which international adjustment of the Sri Lankan Expatriates influenced on their job performance. To test the self-developed research model, fifteen organizations which are registered in the Ceylon Chamber of Commerce and the National Chamber of Commerce for the year 2005 have been used. Those were the organizations doing business internationally by establishing their own branches in India, Bangladesh, United Kingdom, Australia, Maldives, Russia, Canada, China and German. Altogether 94 expatriates have been included for the study irrespective of their job positions. A structured questionnaire was used to collect data over a period of one month. Questions comprised of both positive and negative statements and scores were assigned according to the five point Lickert Scale. For analyzing data, mean, standard deviation, correlation, simple regression and multiple regression under univariate, bivariate and multivariate analyses wear used. The statistical package for social sciences (SPSS) was used for the analysis. Basically the study was conducted in two stages. First it was measured that how perceived factors link with Sri Lankan Expatriates international adjustment and at the second stage how those adjustment factors link with job performance of the Sri Lankan expatriates. Except role ambiguity, the rest of the factors positively link with international adjustment. Among them, lengths of time spent overseas, pre-departure training, and cultural-sensitivity insignificantly correlated. The degree of the influence of international adjustment towards determining job performance of the Sri Lankan expatriates is significantly positive. This research findings contribute to reduce the prevailing theoretical and empirical knowledge gap in the field of International Human Resource Management in the Sri Lankan context.
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Table of Contents
Title page Recommendation of the Supervisor Acknowledgement Abstract
iv
Table of Contents
V
List of Tables
xii
List of Figures
xiv
Chapter One- Introduction
1.1 Introduction
01
1.2 Background of the study
01
1.3 Problem statement of the study
04
1.4 The research questions of the study
05
1.5 Objectives of the study
06
1.6 Significance of the study
07
1.7 Methodology of the study
09
1.8 Hypotheses of the study
10
1.9 Limitations of the study
11
1.10 Organization of the chapters
12
Chapter Two- Literature Review
2.1 Introduction
13
2.2 Introduction to international human resource management
13
2.2.1 Characteristics of international human resource management
17
2.2.2 Who is an expatriate?
22
2.2.3 Reasons for using expatriates in international assignments
22
2.3 Expatriates adjustment factors in international assignment
24
2.4 Evaluation of expatriates' job performance
38
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2.5 Summary
45
Chapter Three- Conceptual Framework and Research Methodology
3.1 Introduction
46
3.2 Conceptual framework
46
3.3 Relationship between independent and dependent variables of the research study
47
3.3.1 Relationship between age and international adjustment of expatriates
47
3.3.2 Relationship between work experience and international adjustment of expatriates 3.3.3 Relationship between length of time spent overseas and international adjustment of expatriates
49
3.3.4 Relationship between managerial competence and international adjustment of expatriates
50
3.3.5 Relationship between selection practices and international adjustment of Expatriates
51
3.3.6 Relationship between pre-departure and international adjustment of expatriates
52
3.3.7 Relationship between role expectation and international adjustment of expatriates
53
3.3.8 Relationship between role ambiguity and international adjustment of expatriates
54
3.3.9 Relationship between cultural-sensitivity and international adjustment of expatriates
55
3.4 Ceptualization and Operationalization of the variables
57
3.4.1 Age
57
3.4.2 Work experience
57
3.4.3 Length of time spent overseas
58
3.4,4 Managerial competence
58
3.4.5 Selection practices
59
3.4.6 Pre-departure training
60
3.4.7 Role expectation
61
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3.4.8 Role ambiguity
62
3.4.9 Cultural-sensitivity
65
3.4.10 Expatriate adjustment
67
3,4.11 Job performance
68
3.5 Hypotheses of the study
69
3.6 Summary
71
Chapter Four- Methodology
4.1 Introduction
72
4.2 Research design
72
4.2.1 Type of the study
72
4.2.2 Nature of the study
73
4.2.3 Study setting
73
4.2.4 Time horizon of the study
74
4.2.5 Unit of analysis
74
4.3 Research method
74
4.3.1 Methodological choice
74
4.3.2 Population and sample
75
4.3.3 Data collection method
76
4.3.4 Validity and reliability of the questionnaire
79
4.4 Level of Measurement of the variables
80
4.4.1 Measuring age of the expatriates
81
4.4.2 Measuring work experience
82
4.4.3 Measuring length of time spent overseas
82
4.4.4 Measuring managerial competence
82
4.4.5 Measuring expatriate selection practices
83
4.4.6 Measuring pre-departure training
85
4.4.7 Measuring role expectations
87
4.4.8 Measuring role ambiguity
88
4.4.9 Measuring cultural-sensitivity
89
4.4.10 Measuring expatriate adjustment
90
4.4.11 Measuring job performance
91
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4.5 Procedure for data analysis
92
4.5.1 Univariate analysis
93
4.5.2 Bivariate analysis
94
4.5.2.1 Correlation analysis
95
4.5.2.2 Simple regression analysis
96
4.5.2.3 Multiple regression analysis
97
4.6 Hypothetical testing
99
4.6.1 Hypothetical testing using correlation analysis
99
4.6.2 Hypothetical testing using regression analysis
102
4.7 Summary
104
Chapter Five- Data Presentation and Analysis
5.1 Introduction
105
5.2 Analysis of reliability and validity of the questionnaire
107
5.3 University analysis
107
5.3.1 Frequency distribution analysis of respondents by their personal characteristics
107
5.3.1.1 Job position of the respondents
107
5.3.1.2 Age of the respondents
108
5.3,1.3 Gender distribution of the respondents
109
5.3.1.4 Level of education
110
5.3.1.5 Duration of the assignment
111
5.3.2 Frequency distribution analysis of independent and dependent variables
112
5.3.2.1 Frequency distribution for age of the Sri Lankan expatriates
112
5.3.2.2 Frequency distribution for work experience of the Sri Lankan expatriates 113 5.3.2.3 Frequency distribution for length of time spent overseas by the Sri Lankan expatriates
114
5.3.2.4 Frequency distribution of managerial competence of the Sri Lankan expatriates
114
5.3.2.5 Frequency distribution of selection practices
11
5.3.2.6 Frequency distribution of pre-departure training
118
5.3.2.7 Frequency distribution of role expectation
119
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5.3.2,8 Frequency distribution of role ambiguity
121
5.3.2.9 Frequency distribution of cultural- sensitivity
122
5.3.2.10 Frequency distribution of expatriate adjustment
124
5.3.2.11 Frequency distribution of job performance
126
5.4 Bivariate analysis
127
5.4.1 Correlation analysis
127
5.4.1 .1 Relationship between age and international adjustment of the Sri Lankan expatriates
128
5.4.1.2 Relationship between working experience and international adjustment of the Sri Lankan expatriates
129
5.4.1.3 Relationship between length of time spent overseas and international adjustment of the Sri Lankan expatriates
131
5.4.1.4 Relationship between managerial competence and international adjustment of the Sri Lankan expatriates
132
5.4.1.5 Relationship between selection practices and international adjustment of the Sri Lankan expatriates
134
5.4.1.6 Relationship between pre-departure training and international adjustment of the Sri Lankan expatriates
135
5.4.1.7 Relationship between role expectations and international adjustment of the Sri Lankan expatriates
136
5.4.1.8 Relationship between role ambiguity and international adjustment of the Sri Lankan expatriates
138
5.4.1,9 Relationship between cultural-sensitivity and international adjustment of the Sri Lankan expatriates
139
5.4.1.10 Relationship between expatriate adjustment and job performance of the Sri Lankan expatriates
140
5.4.1.11 Summary of correlation analysis
144
5.4.2
Multicollinearity of the variables
145
5.4.3
Multivariate analysis
147
5.4.3.1 Combined effect of all the independent variables on international adjustment of the Sri Lanka expatriates
147
5.4.3.2 Combined effect of international adjustment factors on job performance of the Sri Lanka expatriates
150
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5.5 Summary
152
Chapter Six- Discussion, Conclusion and Recommendation
6.1 Introduction
153
6.2 Discussion of the findings
153
6.2.1 Background information of the respondents
153
6.2.2 Frequency distribution of the independent variables
154
6.2.3 Findings on hypotheses testing
155
6.2.3.1 Relationship between age and international adjustment of the Sri Lankan expatriates
155
6.23.2 Relationship between working experience and international adjustment of the Sri Lankan expatriates
156
6.2.3.3 Relationship between length of time spent overseas and international adjustment of the Sri Lankan expatriates
157
6.2.14 Relationship between managerial competence and international adjustment of the Sri Lankan expatriates
157
6.2.3.5 Relationship between selection practices and international adjustment of the Sri Lankan expatriates
158
6.2.3.6 Relationship between pre-departure training and international adjustment of the Sri Lankan expatriates
159
6.2.3.7 Relationship between role expectations and international adjustment of the Sri Lankan expatriates
160
6.2.3.8 Relationship between role ambiguity and international adjustment of the Sri Lankan expatriates
161
6.2.3.9 Relationship between cultural-sensitivity and international adjustment of the Sri Lankan expatriates
161
6.2.3.10 Relationship between international adjustment and job performance of the Sri Lankan expatriates
162
6.2.3.11 Combine effect of all the independent variables on international adjustment of the Sri Lankan expatriates
162
6.2.3.12 Combine effect of all the adjustment factors (independent variables)
x
on job performance (dependent variable) of the Sri Lankan expatriates
163
6.2.3.13 Summary of the testing hypotheses
165
6.3 Implications of the study
167
6.4 Recommendations for future studies
169
6.5 Conclusion
169
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List of Tables
2.1 A comparison of IHRM with DHRM
19
2.2 Predicting expatriate adjustment factors
28
2.3 Categories of attribution of expatriates success
30
4.1 Summary of the questionnaire
78
4.2 Levels of measurement of the variables
81
4.3 Measurement of managerial competence
82
4.4 Measurement of selection practices
84
4.5 Measurement of pre-departure training
86
4.6 Measurement of role expectations
87
4.7 Measurement of role ambiguity
89
Measurement of expatriate adjustment
91
4.9 Measurement of expatriate job performance
92
5.1 Job position of the respondents
107
5.2 Age distribution of the respondents
108
5.3 Gender distribution of the respondents
109
5.4 Education level of the respondents
110
5.5 Duration of the assignment
Ill
5.6 Transformation of the level of work experience of the Sri Lankan expatriates
113
5.7 Transformation of the length of time spent overseas of The Sri Lankan expatriates
114
5.8 Relationship between age and international adjustment of the Sri Lankan expatriates
128
5,9 Relationship between working experience and international adjustment of the Sri Lankan expatriates
129
5.10 Relationship between length of time spent overseas and international adjustment of the Sri Lankan expatriates
131
5.11 Relationship between managerial competence and international adjustment of the Sri Lankan expatriates
132
5.12 Relationship between selection practices and international
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adjustment of the Sri Lankan expatriates
134
5.13 Relationship between pre-departure training and international adjustment of the Sri Lankan expatriates
135
5.14 Relationship between role expectation and international adjustment of the Sri Lankan expatriates
136
5.15 Relationship between role ambiguity and international adjustment of the Sri Lankan expatriates
138
5.16 Relationship between cultural-sensitivity and international adjustment of the Sri Lankan expatriates
139
5.17 Relationship between international adjustment and job performance of the Sri Lankan expatriates
140
5.18 Relationship between job performance and the dimensions of the Sri Lankan expatriates' adjustment
142
5.19 Summary of the hypotheses testing
144
5.20 Summary of multiple regression analysis of perceived adjustment factors with international adjustment
147
5.21Surnmary of the multivariate analysis along the dimensions of expatriate's adjustment
149
5.22 Summary of multiple regression analysis of calculated international factors with job performance of the Sri Lankan expatriates
150
6.1 Summary of the frequency distribution of the variables
154
6.2 Summary of the relationship between perceived factors, adjustment and job performance
164
6.3 Summary of testing hypotheses
165
List of Figures
2.1 Impotent concepts in international human resource management
16
2.2 Expatriate adjustment-(model -a)
26
2.3 Expatriate adj ustment- (model -b)
29
2.4 A theoretical model fro explaining international adjustment of expatriates
35
5.1 Job position of the respondents
108
5.2 Age distribution of the respondents
109
5.3 Education level of the respondents
Ill
5.4 Duration of the assignment
112
5.5 Continuum showing the degree of managerial competence of the Sri Lankan expatriates
115
5.6 Continuum showing the degree of selection practices of the Sri Lankan expatriates
116
5.7 Continuum showing the degree of pre-departure training of the Sri Lankan expatriates
118
5.8 Continuum showing the degree of role expectations of the Sri Lankan expatriates
120
5.9 Continuum showing the degree of role ambiguity of the Sri Lankan expatriates
121
5.10 Continuum showing the degree of cultural-sensitivity of the Sri Lankan expatriates
123
5.11 Continuum showing the degree of international adjustment of the Sri Lankan expatriates
124
5.12 Continuum showing the degree ofjob performance of the Sri Lankan expatriates
126
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Chapter One INTRODUCTION
1.1 Introduction This chapter is devoted to present the background of the study, the problem statement, the research questions, objectives of the study, significance of the study, methodology of the study, hypotheses of the study and the organization of the study.
1.2 Background of the Study
The world has become more competitive than ever. Therefore global competition has been the most influential trend in economics during the last decades (Adler, 2002). Thus explosive growth in globalization has led to a growing number of individuals with international assignments, international joint ventures, and strategic alliances and this has resulted in an increasing number of people working part of their working career abroad (Gregersen, Morrison, & Black, 1998). To compete successfully in a global market, more firms are focusing on the role of human resource as a critical path of their core competence and a source of competitive advantages (Dowling & Shuler, 2000). As a consequence, the concept of International Human Resource Management has become increasingly important in Business Management (Andrea, 2004).
Meanwhile coordination or/and integration between business units is important in the international business scenario. In the international business activities, each unit/branchlsubsidiary needs to carry out its own task, own functional objectives, and to confront its own environmental pressures (Dowling & Shuler, 1990; Andrea, 2004;
Gregersen, Morrison, & Black, 1998). Therefore it is probable that they may not take decisions that are the most efficient for the organization. Under these circumstances, the center/headquarters may make use of assignment of managers among subsidiaries/branches and the center/headquarters in parent country.
In this phenomenon a parent country head quarter, allocates and utilizes special managerial people "who are managerial employees mnoved from their home country to, and for e,nploy,nent in another country for a temporary period ", called Expatriates (Opatha, 2002; Gregersen & Black, 1996) These people assist for development of international managerial competencies and accept the corporate control in vital global markets. Due to the changes of staffing policies of headquarters, the work group in foreign subsidiary or joint venture may not be only from the parent country but also employees from home country or third country ( Forster 2000).
Thus most of the scholars have identified (Opatha, 2002; Mengenhall & Oddou, 1985; Dowling & Schuler, 1990) that procumbent, allocation and utilization of expatriates are more complex in the international environment even though they are the factors which determine the success or failure in international businesses. Expatriates enter a new environment and are often uncertain as to what is acceptable and unacceptable or appropriate and inappropriate. Due to unclearness of these matters, scholars ( Mengenhall & Oddou, 1985) revealed that the tendency for failure of the expatriates in international assignment is high. But expatriates will not be failures in their foreign assignments if International Human Resource Management practices would applied in an appropriate manner, giving special attention to the activities like recruitment,
PJ
selection, pre-departure training, career counseling, cross cultural training, compensation etc (Mengenhall & Oddou, 1985). Because selecting most suitable qualified people at correct time, in a correct way and employing them to the correct place, and giving them an appropriate training adjustment of the expatriates take place within a shorter time (Mengenhall & Oddou, 1985; Harvey, 1989; Black et al 1991).
According to the different scholars (Brislin, 1981; Adler, 1981; Harvey, 1989; Black et al 1991), there had been identified a number of factors which influenced to determine the degree of adjustment of the expatriates under major categories like organizational factors, individual factors, job related factors and non work related factors etc (Welch. G, 1994; Harvey, 1989; Adler, 1981). As they reviewed, such expatriates adjustment factors highly influence to determine the level of expatriate job performance namely for their traits, behaviors and expected results. But the degree of significance of the contribution can very because of the nature of the culture, nature of the business, and size of the business etc (Black & Gregersen, 1991; Welch., 1994; Harvey, 1989; Adler, 1981).
In this global context, Sri Lanka as a developing country the number of industries which have newly entered the market are limited, less than 2% economic growth(Central Bank Annual Report, 2002). Even though the development of industrial sector is limited, most of them are moving towards getting higher productivity. Consequently Sri Lankan industrial sector is far away from the personnel management era and moving towards human resource management era. In such phenomenon, human resource management and international human resource management are still developing concepts in Sri Lankan business scenario. But some
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of the businesses have being moving towards global business with or without having appropriate understanding/practice of international human resource management. According to the information recorded in Ceylon Chamber of Commerce, and National Chamber of Commerce, there are a limited number of companies which are doing business internationally by establishing their own overseas branches.
In this research study, the researcher attempted to cover factors which influence to determine the international adjustment and level of job performance of Sri Lankan expatriates in foreign assignments. Getting a limited number of organizations, the researcher has attempted to generalize the factors which effect expatriates adjustment irrespective of the factors like country, neuter of the industry and their size, number of employees and job position etc. Findings of the study may support to aware the existing ability of the Sri Lankan expatriates' adjustment in international assignments and their impact on job performance. Thus it is important to be aware of the existing level of job performance of Sri Lankan expatriates and thereby identify prevailing tendency to failure or success in the international assignment by reviving the most influential factors for international adjustment.
1.3 Problem Statement of the Study It is generally accepted that International Human Resource Management still is a developing concept in Sri Lanka and therefore, it seems that the expatriate management process ends up once expatriates are assigned for the assignments. Thus in the Sri Lankan scenario, no information is available to find out whether our expatriates are a success or a failure during the international assignment period. Even though they remain abroad up to the end of the agreed period, there is no evidence to
4
prove that they have performed their job in an appropriate manner. The prevailing gap on theoretical and empirical knowledge in the Sri Lankan context requires to investigate the ability of international adjustment of the Sri Lankan expatriates and their level of job performance. Thus the research problem of this study was
What are the factors that contribute to international adjustment of the Sri Lankan Expatriates and how those factors influence to determine their job performance?
1.4 The Research Questions of the Study In this study the researcher has attempted to find answers to the following questions.
What are the natures of the variables: age, working experiences, length of time spent overseas, managerial competence, selection practices, pre-departure training, role expectations, role ambiguity, cultural sensitivity, international adjustment and job performance of the Sri Lankan Expatriates?
How do age, working experiences, length of time spent overseas, managerial competence, selection practices, pre-departure training, role expectations, role ambiguity, and cultural sensitivity relate to international adjustment of the Sri Lankan Expatriates?
Among the factors of age working experiences, length of time spent overseas, managerial competence, selection practices, pre-departure training, role expectations,
5
role ambiguity, and cultural sensitivity, what are the factors that significantly contribute to the international adjustment of the Sri Lankan Expatriates?
What is the combined effect of age, working experiences, length of time spent overseas, managerial competence, selection practices, pre-departure training, role expectations, role ambiguity, and cultural-sensitivity on international adjustment of the Sri Lankan Expatriates?
Does international adjustment significantly relate to job performance of the Sri Lankan expatriates?
1.5 Objectives of the Study
The main objective of the study is to identify the factors which contribute to international adjustment of the Sri Lankan Expatriates and their influence on their job performance. In order to accomplish the main objective of this study the following specific objectives were formulated.
To explore and describe the natures of the variables age, work experience, length of time spent overseas, managerial competence, selection practices, predeparture training, role expectations, role ambiguity, cultural- sensitivity, international adjustment, and job performance of the Sri Lankan Expatriates.
How age, work experience, length of time spent overseas, managerial competence, selection practices, pre-departure training, role expectations, role ambiguity, culturalsensitivity relate to international adjustment of the Sri Lankan Expatriates.
To determine factors that significantly contributes to international adjustment of the Sri Lankan Expatriates.
To investigate the combine effects of age, work experience, length of time spent overseas, managerial competence, selection practices, pre-departure training, role expectations, role ambiguity, cultural- sensitivity on international adjustment of the Sri Lankan Expatriates.
To study relationship between international adjustment and job performance of the Sri Lankan Expatriates.
1.6 Significance of the Study The study is important on the theoretical ground and on the empirical ground as well. On the theoretical ground, there is a scarcity of systematic research that deals with International Human Resource Management practices. In the world context, literature reveals that over the past decades there has been an increasing number of research in the International Human Resource Management area giving considerable attention on selection, pre-departure training, compensation, repatriation and cultural adjustment etc. (Black & Stephens, 1989; Black et al, 1991; Dowling & Schuler, 1990; Dowling & Welch, 1988; Harvey,1989; Mendenhall et al., 1985; Mendenhall & Oddou, 1985, 1986; Tung, 1981). But most of the studies in the expatriate literature fail to analyze the relationship that exists between expatriation adjustment and their job performance. Similarly different aspects of expatriation have been studied independently from each other. But a limited number of research has covered such aspects as the link between adjustments and expatriates performance overseas (Black et al, 1991). In this context
7
it is important to further expand the research area on this matter. Hence the study will add new knowledge on expatriate adjustment and their impact on determining their job performance. As such, Sri Lankan expatriates' adjustment factors and their impact on job performance in overseas assignments are explored using existing knowledge for those interested in the field.
In the Sri Lankan context, even though international trade has consistently grown over the past decades by doubling in the 1980 and 1990s there is no research based literature developed on the field of International Human Resource Management (IHRM). There are no empirical data in the area of IHRM other than a few exploratory journal articles presented by Opatha in 2002. The reason for the prevailing theoretical gap among the Sri Lankan managerial people is insufficient theoretical revision on the field. This research study will facilitate to improve the theoretical awareness of the area. Similarly the lack of post-evaluation after employing the expatriate will improve the gap between theory and practice regarding Sri Lankan expatriates and repatriates as well. Thus these research findings will open up the necessity of post-evaluation of the expatriate adjustment, their job performance and expatriate failure and repatriation too. Such feedback awareness will be a road map for doing international HRM activities in an appropriate manner.
In addition to that, prior research into IHRM has largely been based on survey data. While these studies have drawn attention to the issues involved in expatriate management, there is a need for qualitative as well as quantitative studies which explore possible understanding of the area in the context of the organization within
which such activities take place. In this context it is important to further expand the research area on this matter.
1.7 Methodology of the Study This study was a field survey carried on Sri Lankan Organizations which are doing business internationally by establishing their own branches in foreign countries. The research study was limited to the organizations registered in Ceylon Chamber of Commerce and National Chamber of Commerce in Sri Lanka. According to the given information in the company registry of Ceylon Chamber of Commerce, and National Chamber
of
Commerce
in
Sri
Lanka
out
of
950 number of registered companies there were 15 organizations doing business internationally by using Sri Lankan Expatriates. The unit of analysis was at individual level (all the Sri Lankan Expatriates irrespective of their job positions) and the amount was 164 Expatriates.
To collect the primary data required for the study a set questionnaire was distributed among them. Due to the geographical distance, the researcher has sent the questionnaire via c-mails and for the rest through personnel contacts to distribute them. In the questionnaire there were 115 questions with regards to the eleven variables as in the research model. The secondary data were collected from the source such as reports, records, and other publications from various sources.
The collected data were analyzed using "Statistical Package for Social Sciences" (SPSS) version 10.0. Primarily by analysing reliability and validity of the research instrument, data analysis was involved with frequency distribution analysis for all
9
variables as the descriptive analysis. It included univariate, bivariate and multivariate analyses to accomplish the objectives of this study.
1.8 Hypotheses of the Study 01. Age is positively related to international adjustment of the Sri Lankan Expatriates.
02.Working Experience in the parent company is positively related to international adjustment of the Sri Lankan Expatriates.
Length of time spent overseas is positively related to international adjustment of the Sri Lankan Expatriates.
Managerial Competence is positively related to international adjustment of the Sri Lankan Expatriates.
Selection Practices are positively related to international adjustment of the Sri Lankan Expatriates,
Pre-departure training is positively related to international adjustment of the Sri Lankan Expatriates.
07.Role Expectations are positively related to international adjustment of the Sri Lankan Expatriates.
10
Role Ambiguity is negatively related to international adjustment of the Sri Lankan Expatriates.
Cultural-sensitivity is positively related to international adjustment of the Sri Lankan Expatriates.
Expatriate adjustment factors are positively related to jot) performance of the Sri Lankan Expatriate.
1.9 Limitations of the Study
01, There was no research based evidence on International Human Resource Management Practices in Sri Lanka. This theoretical and empirical knowledge gap creates a path to depend on the research findings carried in Weston Countries even though some of the concepts do not match with us.
Among the number of' companies which are doing business internationally, the research study was limited to the companies registered in Ceylon Chamber of Commerce and National Chamber of Commerce.
Due to geographical distance the researcher has used personal contacts and c-Mails to distribute and collect the questionnaire. Because of some technical disturbances respondents were only 94 out of 164 expatriates.
With regard to the research model, the variable of' expatriate adjustment was not considered as an intervening variable or moderating variable. The reason was that the researcher was not interested in investigating the effect of adjustment ttctors on the Expatriates' Adjustment and the el'l'cct of the Expatriates' Adjustment on the Expatriates' .101) Performance.
1.10 Organization of the Study
The structure of the research consists of six chapters. The chapter one has covered the introductory part of the research including the background of the study, research problem, significance of the study, objectives of the research, hypotheses and research methodology of the study.
The second chapter has covered the literature review of the study. In this section it has discussed the theoretical background of International Human Resource Management practices with special reference to expatiates adjustment factors and job performance. The third chapter has discussed the conceptual framework of the research. Here the researcher has conceptualized and opperationalized the variables in order to prove the hypothesis as mentioned in the later part of the third chapter.
The forth chapter has been devoted to analyse the collected data by using the statistical package. Here using frequency distribution, correlation, and multiple regression analysis the research has attempted to substantiate the hypotheses.
The fifth chapter was devoted to discussion of the findings, conclusion and recommendations.
12
Chapter Two TIIEORITICAL REVIEW 2.1 Introduction This chapter explains the relevant and available literature for the interrogation of the research phenomenon. This literature supports to build the conceptual framework for the research and opperationalized the research variables. The research area is still a developing concept in Sri Lanka. The researcher has presented available literature by three parts. At the first part the researcher has presented brief introduction on International Human Resource Management. At the second part available literature on expatriate adjustment factors in international assignments has been presented. Finally the third part has devoted to cover available literature on expatriates' Job Performance.
2.2 Introduction to International Human Resource Management International Human Resource Management (il-IRM) is "the process of employing and developing people in international organizations which operate in Europe or Globally" (Armstrong, 2000). He further interested that international human resource management means working cross national boundaries to formulate and implement resource development, career management and remuneration strategies, policies and practices which can be applied to an international work force.
According to Opatha, (2002) on his Human Resource Management: Interpretative and explanatory papers, International Human Resource Management (IHRM) has
13
been defined as "human resources management practices in business organizations that have international business operations outside their home country". Further he explained that selection, pre-departure training, performance evaluation, compensation, repatriation management and industrial relation etc. as related practices in the area of International Human Resource Management. The article by Morgan (1995) on the development of international human resource management (IHRM) presents a broader definition with model of IHRM that consists of three dimensions. Those are The three broad human resource management activities: procurement, allocation, and utilization
The three national or country categories involved in international human resource management activities (host country, home country, and other countries)
The three types of employees of international firms (host-country nationals, parentcountry nationals, and thirds country nationals)
With this identification Morgan (1995) had defined International Human Resource Management as "the interplay of among these three dimensions: broad human resource management activities, three types of employees, and countries of operation" (Dowling & Schuler, 1990). In this definition procurement, allocation and utilization come under human resource activities and, host- country nationals, parent country national, and tired country nationals become different work groups involved in international human resource management. Finally in this definition there are types of countries namely host country, home country, and other countries.
14
When going through these definitions it is clear that IHRM involves with international business activities which take place outside the home country in a more complex environment than domestic human resource management activities taken place with participation of different employee groups from different countries.
Dowling & Schuler (1990) explain that the aim of international business is to develop transnational companies. In such transnational organizations common futures are, simultaneously respond to the forces of global integration, local differentiation, and worldwide innovation in technology and products. Such transnational organizations are needed to create and maintain cooperate executive carder with the ability to manage a cross national boundaries relating to local flexibility, which achieving global integration is indispensable (Dowling & Schuler, 2002).
In the figure 2.1 the researcher attempts to explain selected few technical terms which are commonly used in this research with an intention of improving the awareness of the research area within the reader.
15
Figure 2.1 Important Concepts in IHRM MULTINATIONAL COMPANY: A firm with assembly and production facilities in several countries and regions of the world (Dowling & Schuler, 1990; Black et al 1991; Glanz et al, 2001). GLOBAL ORGANISATION: is an organization that has corporate units in a number of countries that are integrated to operate as one organization worldwide (Dowling & Schuler, 1990; Black et al, 1991; Gregersen et al, 1998).
HOST COUNTRY: where a subsidiary may be located (Gregersen et al, 1996, Opatha, 2002, Dowling & Schuler, 1990; Forster, 2000; Harvey, 1983)
HOME COUNTRY: where the firm is headquartered (Gregersen, 1998; Opatha, 2003; Dowling & Schuler, 2002; Forster, 2000; Harvey, 1983)
OTHER COUNTRY: that may be the source of labour and/or finance (Gregersen, 1998; Opatha, 2002; Dowling & Schuler, 2002; Forster, 2000; Harvey, 1983)
HOST —COUNTRY NATIONALS (HCNs): The employees who work in a subsidiary of a foreign company located in his /her own country (Gregersen et al, 1998; Opatha, 2002; Dowling & Shuler, 1990; Forster, 2000; Harvey, 1983)
PARENT-COUNTRY NATIONALS (PCNs): The employees who work in another subsidiary of the company located in outside the country (Dowling & Schuler, 1990)
THIRD COUNTRY NATIOANLS (TCNs): The employees who are not come under host-country nationals or home country nationals but work in foreign subsidiary company owned by another foreign company (Dowling & Schuler, 1990)
EXPATRIATE: A parent country national who is sent by the international company to work for a subsidiary (Opatha, 2002).
INPATRIATE: An individual from a host country or a third-country national who is assigned to work in the home country (Hodegtts, 2000).
16
2.2.1 Characteristics of International Human Resource Management
Researchers (Gregersen, 1996; Dowling, 1990; Forster, 2000; Harvey, 1983) argued that international HRM management is in many ways simply human resource management on a large scale, albeit complex more varied and involving or coordination across national boundaries. Due to inability of finding a universal perception for international HRM, different scholars have identified different characteristics in international HRM based on their experiences and knowledge (Harvey, 1983).
According to Torrington (1994) there are seven characteristics (call 7Cs') which can be used to explain international human recourse management activates as follows:
Culture: Major differences in cultural background
Compensation: special requirements for the determinants of the pay and benefits of expatriates and host country nationals
Communication: maintain good communication between all parts of the organization, worldwide
Consultancy: greater need to bring in expertise to deal with local needs
Competence: developing a wider range of competences for people who have to work across political, organizational and cultural boundaries
17
Coordination: devising formal and informal methods of getting the difference parts of the international business to work closer together
Cosmopolitan: Employees differ by nature of their ethnicity, culture, norms, values, religion, etc and due to these problems companies face repatriation problems after completion of the assignments.
Dowling and Schuler (1990) had presented some unique characteristics of international human resource management which facilitate to differentiate from domestic HRM activities. Among them
More human resource activities Broader perspective More involvement in employee's personal lives Risk exposure More external influences Changers in emphasis as the workforce mix of expatriates and locals varies are important.
Opatha in 2002 developed a table to explain how IHRM differs from Domestic HRM (DHRM) while highlighting the characteristics of IHRM simultaneously.
LI
Table 2.1. A Comparison of LHRM with DHRM
tHRM
DHRM
Concerned with personal programs for more
than
one
national
group
Concerned with personal programs for a
of single national group of employees who are
employees who are not covered by a covered by a uniform compensation policy uniform compensation policy and taxed and taxed by a single government by a single government Greater degree of involvement by HR
Relatively
lesser
involvement
in
department in employee's personal lives. employee's personal lives and involvement Has much more direct contact with the with an employee's family is limited to employee's adequate
family
(helping
schooling,
to
housing
find
matter
relating
to
and
insurance program.
company
provided
sometimes running recreational facilities) More functions and activities such as international
Taxation,
international
No such functions in domestic setting
relocation and orientation, administrative service for expatriates, host government relation and language translation services. More risk exposure such as expatriates failure and international terrorism More external influences such type of
Lesser risk exposure
host government, the state of the host
19
government and the generally accepted
Relatively lesser external influences
practices of doing business in the host country. International managers needs to take a more global view of issues and to deal with multi-national culture concerns
I
Need to take a more indigenous view of issues and deal with single national cultural concern
Source: Opatha (2002), Human Resource Management: Interpretative and Explanatory Papers, Volume I, According to the above explanation it is clear that there are many similarities of IHRM activities with traditional domestic HRM rather than the few exceptional matters like international taxation, cross-cultural training, repatriation programs, relocation and orientation facilities, language translating service etc.But the complexity of operating with different employee categories in different countries can be used to identify differences between IHRM and domestic HRM. Theory suggests that prevailing differences can be moderated by some variables. According to Dowling & Schuler (1990) such moderating variables are given below:
(a) Culture: Even though it is difficult to find an exact definition for culture, Dowling & Schuler, (1990) defined it as that is member of a group or society share a distinct way of e with common values, attitudes, and behavior that are transmitted over time in a gradual, yet dynamic process.
20
Nature of the industry: Nature of industry will moderate the differences, as if the firm is in a multidomestic industry, the role of the human resource department will most likely be more domestic in structure and orientation.
Reliance of multinational on its home-country. Reliance of the multinational on its home-country domestic market is another factor of moderate the above difference. According to Dowling & Schuler (1990), if the firm has a small home market, it is one of the major moves for "going international".
Complexity of operations: A very large domestic market influences all aspect of how a multinational organizes its activities. For example, a multinational will be more likely to use an international division as the way it organizes its international activities and, global product structure, the important of the domestic market will be perceive.
Attitude of senior managers: A Large domestic market will also influence the attitudes of senior managers and will generate a large number of managers with an experience based of predominantly or even exclusively. Otherwise if senior management does not have a strong international orientation, the important of international operations may be underemphasized in terms of corporate goals and objectives. In such situations, managers may tend to focus on domestic issues and minimize differences between international and domestic environment.
21
2.2.2 Who is an Expatriate?
Glanz.L el a! (2001) defines expatriate as "Employee assigned to live and work in a foreign country for a period of time but not permanently". In this definition acknowledge the business interest of an organization or the career interests of individuals would be people and families who move internationally in pursuit of their occupation. Opatha (2002) define expatriate as "a parent country national who is sent by the international company to work for a subsidiary". According to Mathis & Jackson (2000) Expatriate is "an employee working in a unit or plant who is not a citizen of the country in which the unit or plant is located but is a citizen of the country in which the organization is headquartered". The common practice of international HRM is almost all the companies which are doing international business used expatriates to be employed in their subsidiaries due to number of reasons even though management of expatriates is probably one of the most difficult aspects of international hunian resource management (Armstron,2000; Glanz.L et al,2001; Dowling & Schuler,1990)
2.2.3 Reasons for using Expatriates in International Assignments
An article by Opatha (2002) on Human Resource Management: Interpretative and Expletory papers present advantages of using Expatriates as (a) familiarity with objectives, goals, policies, and practices of the parent company (b) possibility to transfer technical and managerial know-how from the parent to the subsidiary (c) greater ability to coordination of subsidiary-parent relations (d) managerial and technical competencies
22
(e) ability to enhance managers' competence to work in a verity of social system and provide them with valuable training for ultimate corporate responsibility, including both domestic and overseas operation (f) easier exercise of control over overseas operation and (g) ability to maintain an international image in the host country.
Harvey & Novicevic (2002) presented the organizational benefits of using the institution of expatriate managers during their overseas assignments as (a) a qualitative improvement of decisions by relying experiential based of informal knowledge that is not generic to the organization (b) facilitated personal development by building personal selfefficiency of the expatriate decision maker and (c) promoting decision compatibility with the headquartered goals/mission due to the shared experiential insights into these issues. They further explained that these outcomes are more possible on their past experiences and ability to make future decisions.
Similarly Adler & Ghadar, (1990) had presented "controlling activities" as one of the important character of expatriates. They state that when multinational expatriats want to increase their level of local responsiveness they recruit local managers. These manages speak the language, understand the culture, the local political system, and normally belong to the social elite of the host country of the subsidiary, which enables the subsidiary to obtain a better market share and to eliminate problems of adaptation of expatriates and their families (Hamil, 1989) Gupta & Govindarajan, (1991) highlight the importance of using expatriate as a coordinator of the international business. Apart of that most scholars have been presented the necessity requirements that influence for better outcome of the expatriates as
23
Basic Knowledge: performance is generally directed by one's knowledge of topic or specific area of expatriates.
The intellectual ability: to synthesize connections, reframe complex problems and assess the value of potential of creative creativity actions.
Inventive thinking/learning style: Creative/creativity managers have a performance for thinking in novel ways that they have constructed on their own.
Motivation to focus on the task/problems and its solutions: Actionable ideas in and of themselves have value and are rewarding.
Risk-taking attitudes: Creativity frequently conflicts with present conventions, and therefore, the individual has to be willing to stand alone.
Dependence of supportive environment: the environment has to be supportive of challenging the states quo, to promote change and diversity (Harvey & Novicevic, 2002).
2.3 Expatriates' Adjustment Factors in International Assignments
Failed expatriate assignments are costly, not only to the company but also to expatriates and their families (Asakawa & Schneder,1995). For companies, costs counted in terms of lost money and productivity, while for expatriates, the cost are immeasurable in terms of career, personal, and family. Repatriation also becoming recognized as problematic (Adler, 1987; Harvey, 1983; Kendall, 1981; Black, Gregersen & Mengenhall, 1991). One study in fact revealed that 77% of US 54% of Finnish, and 43% of Japanese expatriates were actually demoted after returning from an international assignment (Asakawa &
24
Schneder,1995) In the US firms studies, 20% of expatriated managers left their company within 1 year, and 40-50% within 3 years (Black et a! , 1992)
To understand the reasons for these problems, research on expatriates' adjustment has been conducted taking into account variables and processes at multiple levels of analysis (Asakawa & Schneder,1995). Among them, at the macro-level studies, country (including home and hot factors have been explored as well as the cultural distance between the two (Asakawa & Schneder,1995) and company factors such as human resource systems have also been held responsible (Tung et al, 1990). At the micro-level, the expatriates and their families have been the center of attention (Black et al, 1991; Black & Gregersen, 1991). By considering those factors Asakawa & Schneder (1995) have been developed model for expatriates' adjustment perhaps providing insight into expatriates' adjustment responses and provide linkages across levels of analysis among factors associated with expatriates' adjustment.
25
Figure 2.2 Expatriate Adjustment
COUNTRY host/home - Culture novelty - Attitudes towards MNCs - Attitudes towards expatriates - eterogeneity / homogeneity
COMPANY - Rational for expatriation - HRM (selection, training career management) EXPATRIATE ADJUSTMENT
PSYCHOANALYTIC ISSUES - dependency - separations & individualization - motivation to go abroad - intimacy
INDIVIDUAL - technical - personality traits - motivation to go abroad - expectations
FAMILY - spouse's motivation - expact/spouse interaction - children's reaction
Source: Asakawa & Schneder (1995), American and Japanese expatriate Adjustment: A Psychoanalysis Perspective, Human Relation, Vol.48.
26
Apart of that other scholars (Brislin, 1981; Adler, 1981; Harvey, 1989; Black eta! 1991) have been identified number of adjustment factors which contribute to determine the level of adjustment and job performance of the expatriates' in the international assignments. They have categorized those factors as organizational factors, individual factors, job related factors and non work related factors etc. As they reviewed, such expatriates' adjustment factors highly influence to determine the level of expatriate job performance namely for their traits, behaviors and expected results (Opatha, 2002; Dowling & Schuler, 1991). But the degree of significance of the contribution can very the nature of the culture, nature of the business, size of the business etc (Black & Gregersen, 1991; Welch.G, 1994; Harvey, 1989; Adler, 1981).
Even though the topic expatriates' adjustment has received recent attention (Adler, 1986; Mendenhall & Oddou, 1986), expatriates job performance at overseas assignment has received much less study. Even though studies have examined some issues related to expatriates adjustment problems (Adler, 1981; Harvey, 1983, 1989; Kendall, 1981) however most of these studies have focused on expatriation problems as identified by corporate executives (Harvey, 1989).
Given the shift to a global strategy by many organizations and the emergence of hypercompetitive, it is critical that the expatriates' adjustment factors need to be focus on issues relatively to the expatriates' ability to manage in chaotic rapidly changing environment (Harvey & Novicevic, 2002). In such condition, Harvey & Novicevic, (2002) presented eighteen factors for expatriate adjustment under three major categories.
27
First under expatriate managers' personal characteristics (a) past experience of the global environment (b) stage of career life-cycle (c) stage of family life-cycle (d) creativity/creative (e) intuitive (f) personal development competence and (g) predisposition to global relocation were presented. Major six factors had presented under organizational issues as (a) ownership of overseas organization (b) level of operating autonomy (c) level of control (d) consistency/fit of policies and process (e) level of position to be filled by expatriate and (f) nature of tasklassignment were presented under organizational issues. Finally (a) level of economic development (b) cultural distance (c) industry characteristics (d) nature/type of competition and (e) relative government employment law were presented under. environmental. They again noted that due to the extreme complexity of the global assignments, only managers with proven technical /functional skills would be benefited of their adjustment.
Louis (1980) listed four major inputs as instrumental in Expatriate adjustment in international assignments as (a) general personal characteristics (b) past experience (c) influence of others and (d) local interpretation schemes. Aspects of these four inputs have investigated in previous expatriation studies. Factors studied relating individual characteristics to expatriation adjustment including those that may relates to general personal characteristics (empathy: Reuben, 1976; self-confidence: Ivancevich, 1969; initiative and intelligence: Guthrie & Zetnick, 1967; possessing effective communication and listening ability, Abe & Wiseman, 1983; Louis, 1980). Past experience (Church, 1982; Spreitzen, McCall & Mahoney, 1997) has also received attention. Similarly influence of others via social networks (Brody & Chrisman , 1991), within the family
WIV
(Caligiuri, T-Iyland, Joshi, & Bross, 1998) via social control by net-works or social organizations (Evens, 1991; Harzing, 1999) local interpretation schemes, particularly the use of training schemes (Tung. 1981; Reeves-Ellington, 1993; Brewster & Pickard, 1994), buddy system (Aryee, wyatt, & Stone, 1996), informal supervision, and mentoring (Feldman & Bolino, 1999). Recently, Black, Gregersen, & Mendenhall (1992) propose a theoretical framework of expatriate adjustment to justify American expatriation both practical and theoretical relations as follows.
Figure 2.3 Expatriate Adjustment Individual Variables
Job variables
01
Anticipatory Adjustment
I Organizational Variables
I
Expatriation Adjustment • Work Interaction • General Environment
V I
Source. Black J.S. (1994), Factors Related to Japanese Expatriate Adjustment, Human Relation.
29
According to them, age and length of time spent overseas in the most reason foreign assignment considered as individual factors while getting role clarity, role discretion, role conflict as job factors of that study. Clarity of the repatriation process and pre-departure training considered as organizational factors and cultural novelty and social states had discussed under non-work variable in the study.
Apart of that there is mounting evidence that Expatriation Adjustment is a significant problem for most American managers (Black et al., 1992; Harvey, 1989). Based on these theoretical arguments of uncertainty reduction, Black et al (1992) have argued that factors which reduce uncertainty will facilitate Expatriation Adjustment, while factors that increased uncertainty will inhibit adjustment. Black et a! (1992) have further argued that individuals make adjustment in anticipation of moving host country, as well as after arriving back in their home country. Thus according to them some set of factors might play an anticipatory adjustment role as well.
In addition to anticipatory and in-country aspects of adjustment, Black et al (1992) argued that past reviews of the expatriates cross cultural adjustment literature have pointed out four general categories of antecedent variables like (a) individual factors (b) job factors (c) organizational factors and (d) non-work factors. By combining these four categories of antecedents with the notion of anticipatory and in-country adjustment, it is have some certain individual factors, for example, that the anticipatory individual factors and some which are in-country individual factors relative to expatriate adjustment.
30
A different type of model has presented by Harvey, & Novicevic (2002) including expatriates' adjustment factors which can be considerably related to eapatriate selection decisions.
Table 2.2 Predicting Expatriate Adjustment Factors Individual
Organizational
Environmental
Systematic
Expatriate
Factors
Factors
Factors
Factors
Adjustment
Big"5" personal Cross-cultural
Relocation
Characteristics
similar
Factors
training
to
Planning perspective
economy/culture Technical
Repatriation
Reduced
Integrated
Competence
program
government
IHRM system
restriction Cultural
Knowledgeable
Similarity
of Increased use of
adaptability
IHRM managers
language
technology Flexibility
IHRM
Previous cultural Separate
IHRM system
process/procedur
adj ustment
of
es Extensive foreign Mentoring
Consistency of
travel
system globally
Caligiuri
program (200),
Stroh & Caligiuri
Bolino
(1998), Ones & Harvey Viswesvarn
& Bartett
Feldman
et
al, Tung & Miller (1996), Becker
Representati
(1999) , Spreitze, Seifer
(1996),
ye Research
McCall,
et
Mahorey(1997)
(1998)
Lado & Wilson
(1999), Ghoshal (1997), (1994), Harvey
(1999), Katz and (1990)
& Selmer
&
al
et
al,
(1997),
Harris
and
Brewster (1999), Ferris et al (1999), fish & Wood (1996)
Source: Harvey, M & Novicevic. M. M. (2002), Journal of World Business.3 7, 127-138 31
As illustrates above the individual, organizational, environment, and systemic issues have been included on an expatriate successful adjustment, as Harvey & Novicevic (2002). They are insufficient insight into Expatriates dynamic abilities necessary to act/react on unpredictable issues during assignment that are engendered by hypercompetitive global market (Beer, 1997). He presented two additional, dynaniic abilities of expatriate managers needed to be integrated into the adjustment factors. Those abilities were (a) capacity for institution (i.e experience —based decision making ) and (b) creativity! creative (i.e having the ability to develop one of a kind solutions to complex problems into relative short time period. These two abilities can be assessed as specific practical and creative intelligence much like the cognitive intelligence is used to assessed general abilities of expatriates. Therefore, both intuition and creativity/ will be viewed as intelligence.
Other several adjustment factors have identified by Andrea (2004) by getting American and German sample of 154 and 216 respectively. In his research he had addressed on important question. Which competencies have American and German managers experienced to be important when working with individuals from another nation? The ability to speak the language of the interacting individuals is judged to be the most impotent intercultural competency in both samples. US and German managers have also experienced with the ability to be open towards other cultures and the knowledge of the culture, religion, and customs of the interacting individuals to help facilitates international tasks. The next most important priorities of that survey was diplomacy/tolerance and adaptability. Several managers in both samples rate "respect for
32
cultural differences" to be an essential characteristic for successful international adjustment. This is further supported by Ronen's (1989) model that incorporates the dimensions of expatriates success identified by Tung (198 1 ) Ronen (1989). They describe five categories of attributes of success as (a)Job factors (b) relational dimensions (c) motivational state (d) family situation and (e) language skills (Chew, J; 2004). The five categories and their specific aspects are outlined in table 2.3 as follows.
Table 2.3 Categories of Attributes of Expatriates' Success Job Factors
Technical Skills
Relational
Motivational
Family
Language
Dimensions
State
Situation
Skills
Tolerance for
Belief in the
Willingness of
Host
ambiguity
Mission
spouse to live
country
abroad
language
Familiarity with
Behavioral
Congruence
Adaptive and
Non verbal
host country and
flexibility
with career path
supportive
communicat
spouse
ion
headquarters operation Managerial skills
Non -
Interest in
j udgementalism
overseas
Stable marriage
experience Administrative
Cultural empathy
Interest in
competence
and low
specific host
ethnocentrism
country culture
Source: (C'hew, J. (2004); Managing MNC Expatriates through crises: A challenge for JJ-JRM, Thunderbird International business Review, 12 (2) 1-30.
33
But few empirical research studies have being reveled how those adjustment factors can be change base on country basis. Richard.B.P, Nancy K.N & Won Shul-Shim (2000) present their empirical results in their research paper "Expatriate Management: Comparison of Multinational Companies across four parent countries". However in this research they report the results of a study of expatriate management and headquarters subsidiary relations in 42 American, British, German, and Japan multinationals and a sample of 46 of their foreign subsidiaries. They have reveled that what are the most impotent factors that practice their expatriates at international setting? Those factors were according to the priority (a) technical experience (b) interpersonal skills (c) crosscultural skills (d) international capability (e) employee motivation to be an expatriate (1) negotiation ability and (g) language skills. Also they reported that expatriate management is more similar or American and British Multinational Companies, while both German and Japanese multinationals fairly distinct systems of using expatriates in their foreign subsidiaries.
Hodgettes & Luthans (2000) revealed that organizations examine number of characteristics in determining whether an individual is sufficiently adaptable. According to them work experience with culture other than one's own, previous overseas travels, a knowledge of foreign language, and recent immigration background or heritage. Others include (a) the ability to integrate with different people, cultures and types of business organizations (b) the ability to sense developments in the host country and accurately evaluate them (c ) the ability to solve problems within different frameworks and from different perspectives (d) sensitivity to the fine print of differences of culture, politics,
34
religion, and ethics, in addition to individual differences and (e) flexibility in managing operations on a continues basis despite lack of assistance and gaps in information. According to Hodgetts & Luthans (2000) Black, Mendenhall & Oddou in 1991 have developed theoretical models that help to explain the factors involved in effectively adjusting to overseas assignments.
Figure 2.4 A Theoretical Model for Explaining International Adjustment of Expatriates Individual
-Training
Previous Expectation
Individual Self—efficacy Relation Skill Perception skill
Organization Socialization Socialization tactics Socialization content
Model of Adjustment
Anticipatory Adjustment
Job Role clarity Role discretion Role Novelty Role conflict
Degree of Adjustment Work adjustment Interaction adjustment General adjustment
/ Organization Selection mechanisms And criteria
Organization Culture Organization culture novelty Social support Logistic help
Non-Work Culture novelty Family - spouse adjustment
Source: J. Stewart Black, Mark Mendenhall, and Gary Oddou, "Towards a comprehensive model of International Adjustment: An Integration of Multiple Theoretical Perspectives, "Academy of Management Review ", April 1991.
35
As shown, there are two major types of adjustments that an expatriate must make when going on an overseas assignment (Hodgetts & Luthans, 2000) as (a) anticipatory adjustment: this is carried out before the expatriate leaves for the assignment and (b) incountry adjustment: which take place on- site. The anticipatory adjustment is influenced by number of important individual and organizational factors. Among the individual factors were pre-departure training and previous experience while selection mechanisms and criteria were as work as organizational factors (Hodgetts & Luthans, 2000). Once the expatriate is on-site, a number of factors will influence again under the category of individual, organizational, job and non-work factors. At there under individual factors, self efficiency, relational skills, and perception skills have presented. Under the job factors role clarity, role discretion, role novelty and role conflict have presented. Organization cultural novelty, social support and logistical help have presented under organizational factors. Finally in this model has developed effective socialization process which enables to understand tactics to understand "what's what" and "who's who" in the host organization (Hodgetts & Luthans, 2000).
Apart of this empirical research Andrea (2004) discovered American and German expatriates in both nations judge intercultural communication skills and intercultural sensitivity to be important intercultural competencies. Moreover, culture-specificity skills seem to be required when engaged in both an American and German working context. But according to the research findings, previous experience and courtesy were not considered for the selection of American expatriate while German multinationals ignore the criteria like business knowledge, knowledge about political and monetary differences, and analytical abilities.
36
Similarly Stroh, Gregersen, & Black (1998) have revealed that expatriates' spouse reacts to living abroad can be critically important in whether a perform his/her work unit well during an international assignment. Tung (1992) pointed out that the spouse or accompanied partner carries a heavy burden. Upon arrival in the country of assignment, the responsibility for setting the family into its new home falls in the spouse, who may have left behind a career, along with friends and social support networks. The well being and education of the children also concerned the spouse. Through the majority of spouse are females, trailing male spouse face similar problems of adjustment. These factors can contribute to failure of the spouse to adjust, which may affect the performance of the expatriate manager. Further Tung (1992) noted that the relatively lower ranking of inability of spouse to adjust by Japanese respondents is not surprising given the role and statues to which Japanese society relegates the spouse.
Furthermore Black and Stephens (1989) examined the influence of the spouse on American expatriateS' adjustment. Surveying 220 United States expatriates and their spouses working Japan, Taiwan, and Hong Kong, they found that a favorable opinion about the international assignment by the spouse is positively related to the adjustment of the expatriate manager. Despite this important link, however, Black and Stephen (1989) rate that only 30 percent of the firms in their study sought the spouses' opinion concern for the international assignment. According to Tung (1992) United State respondents have listed "knowledge of the host-country as important for functional and operative jobs. Here as communication skills rather than specific language skills, was an important for adjustment for the top subsidiary management position. Differences in language are recognized as a major barrier of effective cross cultural communication (Victer.D; 1992).
37
For example, the 1997-1998 Price Waterhouse survey ranks language skills as the third most important criteria for expatriation adjustment (behind job-related and leadership skills). The United Kingdom, Germen study by Marx, referred to above, ranks language skills as number five (behind social competence, openness to other ways of thinking, cultural adaptation, and professional excellence) (Dowling & Schuler, 1990). According to Dowling & Schuler (1990) Fixman in 1990 found that foreign language skills was rarely considered an important part of success of international business. She comments, "language problems were largely viewed as mechanical and manageable problems that could be soled individually". From the perspective of some expatriates, language is a factor in cultural adjustment, as the Tung-Arthur-Andersen survey indicates: American greatly valued the ability to speak the local language, regardless of how different the culture was from their home country.
Adjustment theorist (Brett et al, 1980; Black & Mendenhall, 1990; Gao & Gudykunst, 1990; Nicholson, 1994; Torbiorn, 1982) have argued that moving in to a new environment creates a significant level of uncertainty and that people from expectations about the new environment. In general, individuals who have accurate or met expectations would be expected to have higher levels of adjustment and job performance than individuals with either undermet or overrnet expectations
2.4 Evaluation of Expatriate Job Performance Job performance has been distinguished as a single most all-encompassing outcome variable in the micro organizational behaviour research (Staw, 1984). The job
performance for any one in any milieu is determined by many and different factors. In the Porter - Lawler extension of expectancy theory, the effort (the factors of values of reward, perceived effort-rewarded probability), abilities & traits, and role perception determine the performance (Moorhead & Griffen, 1999). The equity theory for employee performance determines people from perception of equity or inequity by comparing what they give to the organization relative to what they get back and how this ratio compares with those of others (Moorhead & Griffen, 1999). Vroom (1964), Porter & Lawler (1964), Hellriegel, Slocum and Woodman, (1992), DeCenzo & Robbins (1993), and DeCenzo and Robbins (1999) pointed out that performance is determined by the level and interaction between ability and motivation.
Evaluation of expatriates' job performance is complex due to the interaction of the variables involved (Dowling & Schuler, 1990). Factors in the environment, variables associated with the task, and the personality of the individuals, make job difficult to isolate job-related factors, set performance standards, and devise procedures.
When attempting to determine expatriates' job performance there are some important factors that need to take in to account. (Dowling & Schuler, 1990) Among them (a) compensation package: financial benefit and career progress expectation are not realized during the assignment, the level of motivation and commitment is likely to decrease, thus affecting performance (b) the task: assignment task variables and role of the expatriate (c) headquarters support (d) host enviromTlent and (e) cultural adjustment is the most important factors. Further they revealed that those factors are not mutually exclusive they
interact in a way that has significant implication for the evaluation ofjob performance of the expatriates. Hixon (1986) found that United State companies rarely develop adequate evaluation measures to judge overseas performance and suggested that Australian companies are likewise lacking in this regard (Denice Welch, 1994) The literature also suggests a link between performance expectations and failure rates, in that company expectations of high performance may contribute to failure (Denice Welch, 1994) For example, Tung in 1984 found that Japanese companies did not expect peak performance from expatriates until one year of assignment, which she attributes partly to a long-term cultural orientation ( Denice Welch, 1994). Harnill in 1987 speculates that British companies may have lower performance expectations than do American companies (Denice Welch, 1994).
Assessment of expatriates' performance, one would expect that organizations would carefully measures as control expatriate performance (Jaime,B, Chris. B, & Vesa S, 2001). Rigorous formal performance appraisal system for Expatriates are far from Universal (Schuler, Fulkerson, & Dowling, 1991; Gregersen. & Black, 1996) According to them this poses two questions for analysts. First what explain this lack of formal evaluation?. The lack of evaluation may have something to do with the fact that managers at head quarters receive no incentives or rewards for carrying out careful appraisal, if managers can be read across from the domestic literature, but the physical and cultural differences raise additional complexities. Second, to what extent does the nationality of the company influence the degree in which expatriate performance is formally appraised? (Jaime, Chris. & Vesa , 2001). As they said the literature is no clear on methods of appraising the performance of Expatriates. Objective criteria for Expatriate performance
40
appraisal avoid biases and the subjectivity of qualitative judgments. As Eisenhard in 1989 it is the most natural way to evaluate performance of employee who are far away and in a context that is difficult for understand. That is way appraisal based on subsidiary result is the most common means of expatriates performance appraisal even though Multinational Companies differ in their time horizon of these results (Brewster, 1991). European firms tend to evaluate managers more on the achievement of long-term goals rather than the short term measures used by the American Companies (Lindhelm, & Bjarkrnan, 1999). According to Tahvanainen (1998) reviled that there are many unknowns regarding the determinants of the appraisal. Most of the researchers (Brewster, 1991; Lindholm, Tahvanainen & Bjorkman, 1999; Tahvanainen 1998) sate several questions such as who set the goals, What kind of goals used, how many are set, do expatriate managers tend to obtain better or worse appraisal than local managers, how does the level of international experience of appraisers in headquarters affects the quality of their evaluation, what type of barriers operate to hinder precise performance appraisal of expatriate etc. As Oddou and Mendenhall in 1991 inadequate recognition for the value of expatriates and the informality with which firms accuracy evaluate their expatriates' overseas performance is seriously block the expatriates' career progress (Opatha, 2002). Such performance evaluation data can be used for several other human resource functions like manpower planning, transfers, promotions, compensations, and training of expatriates (Opatha, 2002). Apart of that according to Serman & Bohlander in 1992 newer approaches to performance evaluation stress training as well as development and growth plans for employees (Dowling & Schuler, 1990).
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Who should do the performance evaluation of the expatriates is critical issue. Performance of the expatriates' can be evaluate either by the host country management or the home country management (Opatha, 2002; Oddou & Mandenhall, 1991). Consequently evaluating the expatriates' performance by local management is a problematic because of they evaluate by using their own cultural frame of reference and set of expectations (Oddou & Mandenhall, 1991). Also local management may not have the right perspective to evaluate the expatriates' performance within the broad context of the organization's global strategy (Opatha, 2002) Evaluating job performance of the expatriates' by home office management also be problematic. Because home office management not fully aware what is happening overseas. At their they can used different set of variables than the local management used (Oddou & Mandenhall, 1991). Dowling & Schuler (1990) appraisal of other expatriate employees is likely to be conducted by the subsidiary chief executive officer, the immediate host-country supervisor, or the individual's home country manger depending on the nature and level of the position concerned (Stewar, 1982; Dowling & Schuler, 1990; Opatha, 2002). But as Dowling & Schuler (1999) if the host-country managers have a clear picture of expatriate performance then can take into consideration contextual criteria, but they may have culturally bound biases and lack an appreciation of the impact of the expatriates' performance in the broader organizational context.
Primarily factors affecting an expatriates' actual job performance include his or her technical job know-how, personal adjustment to the cultural and various environmental factors (Opatha, 2002). Success of the expatriates' job performance partly depends on the
42
expatriates' experience in the technical area of the job. Research done by Oddou and Mandenhall (1991) indicate that approximately 95% of the expatriates believe that technical competence is crucial to successful performance. Although common sense supports this notion, research shows that technical competence is not sufficient in itself for successful job performance (Oddou & Mandenhall, 1991). Nature of the expatriate assignment, the stage of the international business development, and the international human resource management philosophy and policies are the determinant of performance evaluation criteria at international assignment (Dowling and Schuler, 1990), Multinational Companies must select and establish specific criteria and standards to be used in judging expatriates' job performance. Criteria are measures for identifying success in an activity. A valid expatriate performance evaluation system must specify performance criteria that are job-related rather than individually related (Opatha, 2002). Typical criteria can range from expatriates' traits (such as whether they are cooperative and cost conscientious) to behaviour on the job (such as planning the work and organizing tasks) to actual results or outcomes (such as number of units produce or sold) (Opatha, 2002) the appropriateness of any one of these criteria many depend on the specific nature of the international assignment. According to Opatha (2002) the international human resource management approaches of the multinational companies like ethnocentric, polycentric etc affects which criteria are used and who sets the standards. Further he revealed that appraisal criteria change when the stage of international business development changers. Dowling and Schuler (1990) have given an example that a change in focus from the technology transfer and narrow objectives to a
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more global approach with longer—term objectives required a considerable change in emphasis regarding performance evaluation. Oddou and Mandenhall (1991) note that degree of importance of performance evaluation criteria may very according to the nature of foreign environment. Further a criterion of maintain positive industrial relations may be a highly valued criterion in one foreign situation and it may not be a highly valued criterion in another situation. According to Dowling and Schuler (1990) it is need to recognize that hard, soft and contextual goals are often used as the basis for performance criteria. Further hard goals are objectives, quantifiable, and can be directly measured such as return on investment, market share, and so on. Soft goals tend to be relationship or trait based, such as leadership style or interpersonal skills. Contextual goals attempt to take into consideration factors that results from the situation in which performance occurs. But here the nature of the international monitory system and local accounting differences make problems accurate measurement of results. Because of this reason they said such results should not be used as a primary input in performance appraisal. According to Japanese studies, they suggested that performance evaluation of subsidiary managers against hard criteria is often supplemented by frequent visits by headquarter staff and meetings with executives from the parent company. Soft criteria can be sued to compliment hard goals, and take into account areas that are difficult to quantify, such as leadership skills, even though appraisal is some what subjective in the expatriate context. Further they add relating on hard criteria such as financial data to evaluate how well an expatriate manager operates a foreign subsidiary does not consider the way results are obtained and the behaviour used to obtain these results.
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According to Opatha (2002) in order to help/guide the evaluator's prospective on the evaluation, there should be a guideline /method which take into account the difficult level of the assignment. Oddou and Mandenhall (1991) note basic breakdown of the difficulty level of the assignment should be done to properly evaluate the expatriates' performance and major variables such as the following should be considered when determining the difficulty level of the assignment namely (a) operational language used in the firm and (b) cultural distance based often on the region of the world and stability of the factors which affect to the expatriates' job performance. Performance evaluation form for the expatriates' particularly can be used the one which prepared for the domestic setting. But as Gregersen et al (1998) said that in the expatiate setting, however the performance context does change, and sometimes it changes dramatically. Given a global context, previous testing and established baselines grounded in domestic situations can become meaningless. In practice international expatriate evaluation is commonly preferred on a yearly basis (Dowling & Schuler, 1990). The majority of United States firms in the Gregersen et al study (1998) referred annul evaluation practice. That study further revealed that most of the United State fires use standard appraisal from and hard criteria.
2.5 Summary
In this chapter mainly three sections were included to cover theoretical background on international human resource management, expatriates' adjustment factors and expatriates' job performance. This information has used to elaborate the research model which is in the next chapter.
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Chapter Three CONCEPTUAL FRAM WORK AND RESEARCH METHODOLOGY
3.1 Introduction
This chapter has discussed the conceptual model of the research, including relationship between independent variables and dependent variables, conceptualization, and operationaliztion of the variables of the study. Finally it has included hypotheses which were formulated to achieve research objectives of the study.
3.2 Conceptual Framework Individual Factors
'Age 'Work Experience 'Length of time spent overseas Managerial Competence
Organizational Factors
'Selection Process Pre-departure Training
Expatriates Adjustment
Expatriates Job Performance
Job Factors
'Role Ambiguity 'Role Expectation
Non Work Factors
'Cultural Sensitivity
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Based on the research problems, the research objectives and the literature review, the conceptual framework was constructed as above in section 3.2. In this model, eleven variables have been considered at two stages. At the first stage age , work experience length of time spent overseas, managerial competence, selection practices, predeparture training, role expectations, role ambiguity, and cultural sensitivity have been considered as independent variables, while Expatriates adjustment have been considering as dependent variable of the study. At the second stage expatriate adjustment and expatriate job performance have been considered as independent and dependent variables respectively.
3.3 Relationship between Independent and Dependent variables of the Research Study
3.3.1 Relationship between Age and International Adjustment of Expatriates
The research study on Japanese Expatriate Adjustment by Black et al (1994) revealed that generally older individuals have more information about experience in the host country. Similarly, according to the study done by Black (1994), Black & Gregersen (1991) this was similar to the condition of repatriation adjustment too. It has been identified that younger expatriates are more open to the conditioning of the foreign environment and are less willing to conform once again to the norms of the home country compared to older expatriates. It may be that older expatriates simply have more connections in the home operation which allow them to stay informed and thereby facilitate their reentry (Black, 1994). According to the sample of American and
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Japanese Expatriates, Multinational Companies should send older employees overseas as means of facilitating re-entry adjustment (Black, 1994).
According to Hodgetts & Luthans (2000) most multinational companies strive for a balance between age and experience. It is evident that younger managers are more eager for international assignments. These managers tend to be more worldly and have a greater appreciation of other cultures than older managers do. On the other hand young people often are the least developed in terms of management experience and technical skills; they lack real-world experience. To gain the desired balance, many firms send both younger and seasoned personnel to the same overseas post (Hodgetts & Luthans. F, 2000).
Apart from that the knowledge and information of the older expatriates' can serve to reduce some uncertainty concerning expatriation adjustment and facilitates general adjustment abilities; therefore, age would relate positively to expatriates adjustment. (Black, 1994). Additionally, it would seems that this accumulated knowledge might serve to reduce uncertainty relative to the adjustment as well.
3.3.2 Relationship between Work Experience and International Adjustment of Expatriates
Work experience in the organization has been a consistent predictor of the level of expatriate job performance (Black, 1988; Black
& Stephen, 1989). The logic of
investment would suggest that as individuals retain membership in a firm for a longer period of time, the greater his or her tangible and intangible investment in the firm. Theoretically tenure in the parent company would positively relate to job performance
of expatriates during the assignment period since most expatriates have significant tenure in the parent firms (Black 1988; Gregersen & Black, 1996). In contrast to tenure in the parent company, a significant investment of time in international assignments would likely decrease an individual's job performance and their commitment during repatriation too (Black 1988; Gregersen & Black, 1996).
3.3.3. Relationship between Length of time spent overseas and International Adjustment of Expatriates
The total number of years the expatriate worked in a foreign country with any firm or formal organization also includes the years of current assignment (Black, 1994). The longer the assignment, the longer the expatriates have been away and the more certainty they face upon their new assignments (Black, 1994; Black & Stephens, 1989; Mendenhall & Oddou, 1986). Additionally, many expatriates if they are successful in their first foreign assignment, seem to serve subsequent ones (Copeland & Griggs, 1985; Tung, 1988). Therefore it is important to measure and logical to expect that total time overseas would positively relate to expatriates' adjustment. According to White (1988) these arguments would seem to apply equally well to almost all the expatriate managers. In fact in her interview based study found that those who were away from home the longest seemed to have the easiest to adjusting to the host country
The average assignment for Japanese firms is four to five years compared with two to three years for American firms (Black, 1994). This longer assignment allows the expatriate more time to adjust to the foreign situation. Further Japanese firms do not expect the expatriates to perform up to full capacity until the third year the first years of the foreign assignment is seen mainly as a period of adjustment to the foreign
49
environment. Allen (1988) stated these differences between Japanese posting to the United State and vice versa.
3.3.4 Relationship between Managerial Competence and International Adjustment of Expatriates
Research findings consistently indicate that multinational place heavy reliance on relevant technical and managerial skills during the expatriates' adjustment in international assignments (Black, 1988; Gregersen & Black, 1996; Black J.S & Stephens G.K, 1989). As a results of that most researchers (Hixon, 1986; Tung, 1988; Black, 1994; Black & Stephens, 1989; Mendenhall & Oddou, 1985) indicate that this is one of the most important criterion of expatriates' selection for foreign assignments. Mendenhall, Dowling, & Oddou (1994) as concluded that United State companies seem to focus their selection efforts on one single criterion that of technical and managerial competencies despite the importance of all the other criteria correlated to international success. A survey of 40 Michigan firms by McEnery & DEsHarnauis (2000) reveled that technical or managerial skills were the most important factor for expatriate adjustment. According to Dowling and Schuler; Bjorkman & Gertsen (2000), report a comparable emphasis on managerial skills in their survey of Scandianvian multinationals. Furthermore according to Dowling and Schuler (2000); Bjorkman & Gertsen (2000), a more resent study of United Kingdom and German multinationals found that the majority based their selection decision mainly on managerial and technical ability of the candidate due to the importance of the criterion in terms of adjustment in international assignments.
3.3.5 Relationship between Selection Practices and International Adjustment of Expatriates Hiring and placing people in positions where they can perform effectively is a goal of most organizations, whether domestic or international (Dowling & Schuler, 1990). Given the important role commonly assigned to expatriates, it is logical to assume that parent company takes great care in their selection process (Dowling & Schuler, 1990). Because predicting future performance potential when hiring or promoting staff is challenging at the best times, but operating in foreign environments certainly adds another level of uncertainness (Dowling & Schuler, 1990; Tung 1988). Because of that selecting expatriate for international assignments has become increasingly important for organizations which are doing business internationally (Kraimer, Wayne, & Jaworski, 2000; Shaffer, Harrison, & Gilley, 1999). For example, expatriates are made use of to transfering technologies, in joint ventures, to transmit organizational culture, to enter new markets, and to develop the international skills of employees (Bennert, Aston, & Colquhoun, 2000). However expatriates involves a considerable risk for companies regarding the success of expatriate endeavors and the cost of expatriate failures (Graf, 2004). According to Graf (2004) expatriate global failure rates have been estimated at 16-40% (Shaffer et al 1999), 20-40 % (Solomon, 1996), 30-50% (Black, Mendenhall, & Oddou, 1991) and 50% (Allerton, 1997). Further Graf (2004) reveals that the average estimated monitory cost of an expatriate failure is placed at anywhere from $ 200,000 to $1 .2 million depending on the number of expatriate in the company, the function of the expatriate and number of accompanying family members. Because of these reasons most of the researchers like Bolino & Feldman (2000); Kealey (1996); Riusala (2000) Soloman (1996) Feldman & Tompson (1993) Harvey (1993) have identified effective expatriate selection as a major mechanism to enhance expatriate
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adjustment and their success ( Guaf, 2004). According to Harvey & Novicevic (2002) it is necessary to develop more dynamic expatriate selection criteria to fit the needs of networking in the hypercompetitive global market place. One needs to reflect on what has historically been successfully/unsuccessfully utilized in the most several decades in the selection of expatriate managers.
3.3.6 Relationship between Pre-departure Training and International Adjustment of Expatriates
Once an employee has been selected, pre-departure training becomes the next critical step in attempting to ensure the expatriate's effectiveness and success abroad (Mendenhall et at, 1987). As Black & Mendenhall (1990) argued and found that predeparture training facilitates expatriation adjustment, repatriation training about the reentry process, problems people encounter, and the means for dealing with repatriation adjustment for returning expatriates. This would also be expected to reduce the normal level of uncertainty and thereby facilitate adjustment.
For Expatriates unfamiliar with the customs, culture and work habits of the local people, pre-departure training may be critical to their effectiveness and success in their overseas assignments (Mendenhall eta!, 1986; Welch, 1994).
It is also important to include the family in these training programs (Opatha, 2002; Chew, 2004; Mendenhall ci a!, 1986; Welch, 1994). Extensive studies indicate that training is beneficial in reducing expatriates' perceived need to adjust (Deshpande & Viswesvaran, 1993; Chew, 2004). According to Chew (2004) a survey conducted by Windham International and the National Foreign Trade Council in 1999, revealed that a
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large number of international assignments are turned down or interrupted because of spouse and family issues. The survey's respondents cited family adjustment (65%), spouse's resistance (53%) and spouse's career (45%) as the most critical roadblocks to acceptance and success of international assignments. Substantial research (1-larvey, 1986; Black & Gregersen, 1991; Bonache & Brewster, 2001) specify that if the expatriates' spouse and/ or family members are having trouble adjusting abroad, the expatriate will have problems including poor job performance, which could result in an early return from the overseas assignment.
3.3.7 Relationship between Role Expectations and International Adjustment of Expatriates Dean et a! (1988) found that achievement of job expectations are positively related to individual and organizational outcome. The common theoretical explanation for this is that if the expectations are met, i.e., the expectations were accurate, then the anticipatory adjustments that were made in conjunction with these expectations would also be appropriate for the situation, resulting in outcomes such as greater satisfaction, adjustment to the situation, or commitment. They also found, as is commonly theorized (Louis, 1980) that undermet job expectations were negatively related with outcome such as organizational commitment. Interestingly, Dean et a! (1988) found that overmet job expectations were not significantly related to outcome such as organizational outcome. Louis (1980) argued that even though the required adjustment in the case of overmet expectations might be easier than in the case of met expectations.
Stewart (1982) argued that an individual's job could be conceptualized in three major segments as job demand, job constrain, and job discretion. According to him
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conceptualization job expectations in terms of these three aspects revels several interesting, and potentially different relationships with outcome such as adjustment or job performance. For example, in the case of job demand expectation it is possible that having overmet job demand expectations, i.e., a job more demanding than expected, might be easier to adjust to than having job demand expectations undermet, i.e., job less demanding than expected (Louis, 1980). Accordingly in the case of job constrain, if job constrain expectations are undermet, i.e., job constraints are less than expected, this is likely positive. Whereas, if job constrain expectations are overmet, i.e., job constrains are greater than expected, this is likely to be interpreted as a negative. Finally Louise (1980), Dean, Ferris, & Konstans (1988) have summarized that one would expect higher levels of expatriation adjustment in individuals whose job demand expectations were overmet rather than undermet, but one would expect higher levels of adjustment in individuals whose job constraints expatiations were undermet rather than overmet.
3.3.8 Relationship between Role Ambiguity and International Adjustment of Expatriates Role ambiguity is a direct function of the discrepancy between the information available to the person and that which is required for adequate performance of expatriate's role (Gregersen, 1995).
There is role ambiguity if there is no clear consensus of role-expectations (Argyle, 1969) because if the performer doesn't know what he should be doing, and has no clear expectations about how others will behave towards him the results is role ambiguity. In the survey of Industrial employees Kahn et a! (19640 found that 35% of their sample were disturbed by lack of clarity about the scope and responsibilities of their jobs, 29%
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are bothered by ambiguity about what their co-workers expect of him, and 38% are bothered by ambiguity because they cannot get information required to perform their jobs adequately. They conclude that this was due to complexity of modern industrial organizations, to the rate of organizational change, and to the failure of management to put as employee fully in the picture (Argyle, 1969).
Two types of ambiguities may be distinguished in terms of the focus of the expatriates feeling of uncertainty. The first one is task ambiguity which results from lack of information concerning the proper definition of the job, its goals and the permissible means for implementing them.
The second set of concerns relates to the
socioernotional aspects of his role performance. The second kind of ambiguity manifested itself in a person's concerns about his standing in the eyes of others and about the consequences of his actions for the attainment of his personal goals Kahn et a!, 1964). According to them it is also a source of stress in a verity of situation such as joining the organization or working in a new joint venture and become uncertain about task and social expectations.
3.3.9
Relationship between Cultural-Sensitivity and International
Adjustment of Expatriates The word "culture" from the Latin culture, is related to cult or worship. In its broadest sense, the term refers to the result of human interaction (Hodgetts & Luthans, 2000). Because different cultures exist in the world, an understanding of the impact of culture on behaviors is critical to the study of international management. (Hodgetts & Luthans; 2000). If international expatriate managers do not know something about the culture of
the countries they deal with, the results can be quite disastrous (Hodgetts & Luthans, 2000).
The cultural adaptability in which expatriates operate is an important factor in detennining successful performance. (Dowling & Schuler, 2002) According to them it is required cross cultural abilities that enable the person to operate in a new environment. These includes cultural empathy, adaptability, and maturity. Murray and Murray advocate that while inter-cultural competence is recognized as important, it is difficult to precisely define what this comprises of let alone asses a candidate's suitability in this regard.
According to Dowling & Schuler (1990) the dilemma is that adjustment to a foreign culture is multifaceted, and individuals vary in terms of their reaction and coping behaviors. Determining the relevance of adjustment to the new environment when assessing expatriate work performance may be problematic.
As revealed by Gregersen (1995) on the results of his study on 'Dual commitments during repatriation: The case of American Expatriates' , there is a negative relationship between adjustment to the host country culture during the international assignment and adjustment to the home country culture after returning home. This finding seems to reflect a reverse culture shock for some expatriates and reinforce the importance of preparing expatriates for effective cross-cultural adjustment.
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3.4 Conceptualization and Opretionalization of the Variables
Conceptualization is a process specifying what the researcher will mean when using the variable (Babbie, 1995; Opatha, 2003). This process ends up by developing working definition for the variable (Opatha, 2003) Opretionalization means development of procedures which enable to measure the variable. Developing dimensions, sub dimensions (elements) and finally developing research questions, operationalization process will end up (Babbie, 1995; Opatha, 2003). The following sections illustrate how research variables have computerized and Opperationalized for the research purpose.
3.4.1 Age
According to the Chambers Concise
201h Century Dictionary (1996) "age is the time
duration which a person has lived". As in the Pocket Oxford Dictionary (2000) "age is length of time that a person or thing has existed". American Heritage Dictionary of the English Language (2000) defines age as " the length of time that one has existed or the duration of life".
Based on these definitions, the nuiiiber of years old of the expatriates has been considered as working definition of the study. Opperationalized the concept directly asking the age of the Expatriate.
3.4.2 Working Experience
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According to the Chambers Concise
20th Century Dictionary (1996) experience is
defined as acquaintance with any niatter gained by trial. As in the Pocket Oxford Dictionary (2000) "work experience means knowledge or skill resulting from task to be undertaken". Based on these definitions, knowledge or skills resulting from task , duties and responsibilities which have been undertaken several times has been considered as a working definition of the study. Opperationalized the concept directly asking how many years in the current position of the expatriate
3.4.3 Length of time spent overseas
The total number of years the expatriate worked in a foreign country with any firm or formal organization which including the years of current assignment (Black, 1994)
Total number of months and or years the expatriate has been working in international assignments are considered as working definition of the study. Opperationalized the concept directly asking total international work experience of the expatnateS.
3.4.4 Managerial Competence Competency is a social concept involving a competitive judgment about the value or worth of human performance (Tracey, 1991). It is not merely related to a single individual, it relates to pairs of individuals and groups (Rao, 2004). According to Woodruff in 1992, the competency can be defined as the set of behaviour patterns that
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the incumbent needs to bring to a position in order to perform its tasks and function with competence (Bratton & Gold, 1994).
The extent to which expatriates are skilful on planning, organizing, leading and controlling on day to day activates which enable him/her to accomplish the given task, duties and responsibilities within given period of time is considered as working definition of the study. Thus getting planning, organizing, leading, communication, and controlling as dimensions of the concept (Stoner & Freeman, 1994), Opperationalized the concept by presenting well defined definitions to make sure the extent to which expatriates are skillful in the each area.
3.4.5 Selection Practices Selection is the process of gathering information for the purpose of evaluating and deciding who should be employed in particular jobs (Dowling et al., 1990). According to Opatha (2002) selection is a process of gathering information to fill the vacancy among the pool of applicants. Milkovich & Boudreau (2003) Selection is the use of information about recruited applicants to choose which of them will receive employment offers. According to Chandan (1995) selection is a process of choosing the right candidate from the pool of applicants. This process is established to achieve a good match between the job requirements and the candidate's skills and motives.
Storner & Freeman (1994) selection is identified as a mutual process whereby the organization decides whether or not to make a job offer and the candidate decides whether or not to accept it. Noe & Robert (1981) define selection as the process of
choosing from a group of applicant those individuals best suited for a particular position. Mathis et al (2000) defined selection as a process of picking individuals who have the necessary and relevant qualifications to fill jobs in the organization.
Based on the above definitions, working definition of the concept (selection practices) was the criteria and the methods used to choose the most appropriate employee to fill the international vacancies.
Opperationalized the concept by intToducing 15 selection criteria and 09 selection methods adapted from the original questionnaire developed by Opatha (1996).
3.4.6 Pre-departure Training Training is the process of altering expatriate behaviour and attitudes in a away that increases the probability of goal attainment (Opatha, 2003; Hodgetts & Luthans, 2000), According to Chandan (1995) training is a process of utilizing a systematic and organized procedure by which managerial personnel learn technical knowledge and skills for a definite purpose.
As Milkovich & Boudreau (2003) presented training is a systematic process of changing the behaviour, knowledge and/or motivation of present employees to improve the match between employee characteristic and employment requirements. Signh (1995) defined training as the process of changing attitudes, improving knowledge and development skill of the personlemployees of an organization, so as to enable them to perform their jobs c!ictively. Gluek W.F (1974) training is defined as any act designed to increase the skills and effectiveness of employees.
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According to Singh (1995), as his role of training need assessment in training program, Taylor (1961) conceptualized training as a means of bringing about a continues improvement in the quality of work performed, it would equip them with necessary knowledge, skills, abilities and attitudes to perfom their job.
Based on those definitions, working definition of the study is considered as the way of altering expatriates and his/her family members behaviour, and attitudes with special reference to the content and the techniques of the training program.
Operationalising the concept, dimensions of pre-departure training are identified as Phatak pointed out in 1992 (Opatha, 2002). According to him Pre-departure training consist by two phases. At the first phase the training for the expatriates and the second phase for both expatriate and his/her family members. At their language training, crosscultural training, and area study have been considered in the study.
3.4.7 Role Expectations Role expectations are action or qualities expected by the occupant of a position (Rao, 1991). Role expectations are likely to be more complex for the third country national than the parent country national, because of the role is defined by and performed in two countries other than in the third country nationals owned (Dowling and Schuler, 1990). According to Stan (1975), role expectation means the way in which individuals are mentally set to perceive the behaviour of others.
As such working definition for role expectations of this study, has considered as actions or qualities expected by the expatriates in the international assignments.
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To opperationalized the concept, have paid attention to four dimensions introduced by Black in 1992. Those were Job demand expectation, job constrain expectation, job discretion expectation, and general expectation. In his research he further expand the job expectations as job demand (volume) expectations, job demand (Slandered) expectations, and job demand (relational) expectations. Black revealed that when individual job discretion expectations met and overmet, expatriates adjustment and job performances had the highest level while when expectations were undermet reported the lowest levels of expatriation adjustment and job performance. In that study, the results between job constrain expectations and expatriates adjustment and performance outcomes point to a different pattern of relationship. In the case of job performance, individual's whose job constrain expectations were met reported the highest levels of job performance, while those whose expectations were either undermet or overmet reported similarly lower levels of job performance. Finally considering those views job demand expectation, job constrain expectation, job discretion expectation, and general expectations are applied as dimensions of role expectations in this study.
3.4.8 Role Ambiguity Role ambiguity is another job factor which influences to determine expatriate job performance in a new international work setting. A role is a set of activities associated with a certain position in the organization or in the society. According to Kahn (1983), if these work activities are ill defined, then the person who is carrying out these work activities will not behave as others expect him to because his role is not clearly defined and the consequence is role ambiguity. Robert & Kinicki.(1992) explain that role ambiguity occurs when the nature of the role set fail to communicate to the focal person expectation they have or information needed to perform the role, either because
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they do not have the information or because they deliberately withhold it. Chanden (1995) said that this kind of role ambiguity is particularly strong among managerial jobs where responsibilities are more general in nature and role definitions and task specifications are not clear.
Role ambiguity is a situation where the expatriate is uncertain about what he should perform, a conflicting situation which has arisen due to inadequate job description. When there is no proper order given and when there is conflict between the role to be performed (Brett, 1998; Dawis & Lofquist, 1984; Nicholson, 1984).
According to Pareek (2002) when an individual is not clear about the various expectations people have from his role, he faces a conflict which may be termed role ambiguity. As revealed by Stoner & Freeman (1994) role ambiguity occurs when the individuals is provided with insufficient or unclear information about his or her responsibilities and its therefore uncertain about what to do. New managers often experience role ambiguity when they are given a set of duties and responsibilities without being told exactly how to carry them out.
Fread Luthans (1995) explained that role ambiguity occurs when there is a lack of clarity of the work to be performed and a person is unsure what to do within his role. A person's own perception may differ from others expectations. This will arise because of the inadequate information to perform his role. Inadequate knowledge and skills, poor communication, deliberate withholding or supervision, inappropriate job description may result in role ambiguity. If the manager does not know what has to be done or how it should be done, if the orders and instructions are not clear, if there is no
63
proper or scientific approach to the job descriptions of managers, role ambiguity may occure.
Theodore (1969) in his article on "Group Structure and the New Corners" , defines ambiguity as the difference between one's actual state of knowledge about what is expected and the amount of knowledge that would be necessary for need satisfaction.
Duncan (1978) defines role ambiguity as a lack of clarity concerning what type of behaviour is expected of a person in an organization. In this definition he further states that it means the extent to which a person is uncertain about his or her expected behaviour pattern in a group. Marcis & Daft (2001) states that role ambiguity occurs when they are uncertain about the behaviour expected of a person in a particular role. Based on the above definitions, unclearness about the various expectations an expatriates has from his/her role is considered as a working definition of role ambiguity of this study.
Before Opperationalized the concept attempts is present dimensions for role ambiguity by Rizzo & Robert (1972) and Duncan (1978) based on clarity of the required information for the employee for his/her role performance. According to them (a) Clarity of the job requirements (b) Clarity of peers' expectations of managers' behaviour (c) Employees' expectations of Managers' behaviour (d) Managers expectations' of Employees behaviour (e) Boss's expectation of managers' job performance and (f) Managers' expectation of peers' behaviour have been used to measure role ambiguity.
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Friedson (1993) has presented four dimensions of role ambiguity that has characterized their functional positions as (a) powerlessness or marginality in management decisionmaking (b) opportunities for managerial intervention (c) clarity
(d) clarity of
accountability in specifying the goals, business outcomes and other contributions of the managerial functions.
But for the study purpose, the dimensions of role ambiguity are taken as in Pareek (2002). The reverse order of the dimensions of role clarity, have been used to measure role ambiguity as clarity of (a) senior officers expectations (b) peers expectations ( c) juniors expectations and (d) task expectations
3.4.9 Cultural-Sensitivity
Cultural -sensitivity refers to the degree of psychological comfort with various aspects of a host country (Black & Gregersen, 1991).
Abe & Wiseman, 1983; Chen & Starosta, 1996; Cui & Awa, 1992; Fritz et al, 2002; Koester & Olebe ,1988; Martin,1987 defined the emotional capability to be sensitive towards individuals from a different national culture as cultural sensitivity of expatriates (Graf 2004). Thus this is considered as working definition of the study.
Operationalising the concept has identified several research findings on dimensions of cultural-sensitivity. Some researchers have attempted to provide a composite picture of cultural- sensitivity by examining its subparts, or dimensions (Hodgetts & Luthans, 2000). In particular, Dutch research Greet Hofstede (1980) found there are four
dimensions of culture that help to explain how and why people from various cultures behave as they do (Hodgettes & Luthans, 2000). Those were Power distance: The extent to which les powerful members of institutions and organizations accept that power is distributed unequally. Uncertainty avoidance: The extent to which people feel threatened by ambiguous situation and have created beliefs and institutions that try to avoid these. (c ) Individualism: The tendency of people to look after themselves and their immediate family only. (d) Masculinity: A culture in which the dominant values in society are success, money and things.
The study done by Chen & Starosta, (1996,1997) to assess inter-cultural competency, by using inter- cultural sensitivity scale. In that study they have used five dimensions as engagement in inter-cultural interaction respect for cultural differences self-confidence in inter-cultural interactions enjoyment of inter-culture interaction attentiveness in inter-cultural interactions these dimensions were used by Fritz & Mollenberg in 1999 for the German samples (Graf, 2004) as well. For the purpose of this study these six dimensions were considered when developing research questions.
M oo
3.4.10 Expatriate Adjustment
According to Black Stewart (1992) expatriate adjustment has been defined by Black (1988); Brett, (1998); Brislin (1981) Louis, (1980) as the reduction of uncertainty. According to them this is common with the condition of repatriation too.
Again Black & Gregersen (1991) have defined expatriate adjustment as the degree of psychological comfort with various aspects of a host country. This definition has been considered as the working definition of the study.
Based on the definition given by Black (1992,1994) three dimensions of expatriate adjustment has been identified as (a) interaction adjustment (b) work adjustment and (c) general environment adjustment. Gregersen (1995) has identified three dimensions (a) adjustment to the job (b) adjustment to interacting with host national and as and (c) adjustment to the non-work environment. Again these dimensions on expatriate adjustment have been further developed by Black Stewart & Gregersen (1995) as (a) psychological adjustment and (b) physical adjustment to the host environment. Thus for this study purpose interaction adjustment, work adjustment and general adjustment have been considered as dimensions of expatriate adjustment when preparing research questions.
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3.4.11 Job Performance
Many scholars have defined the concept of job performance. Terence, Mitchell and Larson (1987) defined the concept of job performance as the result of behaviour as judged against some criterion or standard of excellence (1987). In many ways overall performance is quite similar to organizational citizenship (Moorhead & Griffin, 1999).
Moorhead & Griffin (1999) defined that the job performance is made up of all (total set of job related) work - related behaviour. It is as the accomplishment of those tasks that comprise of a person's job (Porter & Lawler, 1986). Performance is a term that uses behaviour as the means and its consequences as the end (Tracey, 1991). Milkovich & Boudreau (2003) define job performance as the degree to which employees accomplish job requirements.
Rao (2004) defined job performance as the out put delivered by an individual in relation to a given role during a particular period of time under the set of circumstances operating at that point of time. This is considered as the working definition of the study.
To operationalized the concept, the researcher has considered different aspects presented by other researchers. Job performance is a multi - dimensional concept and behaves in different ways in different scenarios. Cox and Nkomo (1986) pointed out three dimensions for the variable of job performance, which are performance traits, task performance, and social behaviour. Robbins (1982) said that individual task outputs, behaviour, and traits are the dimensions of job performance.
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According to Brodskey (1988), mental and physical abilities, personality (such as dependability and self confidence), and job itself (Gordon, 1993) are the dimensions of Job performance. Job performance can be measured by using 19 items namely (1) technical competence (2) ability to organize and schedule work loads (3) skills in planning nursing care (4) acceptability of completed work (5) attendance and promptuess (6) observance of rest and lunch periods (7) amount of work performed (8) completion of work on schedule (9) adaptability in emergencies (10) quality of work (11) dependability (12) willingness to perform duties (13) observance of rules and regulations (14) effort applied (15) accepting responsibility for own behaviour (16) making a good impression on visitors (17) personal appearance (18) skills in communications and (19) overall effectiveness.
Opatha (2002) pointed out that the traits, behaviour and results are the dimensions of job performance of an employee. These dimensions were used to measure job performance of the expatriates giving more priority to results rather than traits or behaviors in this study.
3. 5 Hypotheses of the Study
Hypothesis 01: Age is positively related to international adjustment of the Sri Lankan Expatriates
Hypothesis 02: Working Experience in the parent company is positively related to international adjustment of the Sri Lankan Expatriates.
M e
Hypothesis 03: Length of time spent overseas is positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 04:
Managerial Competence is positively related to international
adjustment of the Sri Lankan Expatriates.
Hypothesis 05: Selection Practices are positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 06: Pre-departure training provided for the expatriates is positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 07: Role Expectations are positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 08: Role Ambiguity is negatively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 09: The Cultural-sensitivity is positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 10: Expatriate adjustment factors are positively related to job performance of the Sri Lankan Expatriates.
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3.6 Summary There were five sections in this chapter. The research models, relationship between independent and dependent variables, conceptualization and opretionalization of the independent and dependent variables and the research hypotheses of the study have been presented.
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Chapter Four METHODOLOGY
4.1. Introduction This chapter is used to present the research methods of the study. The chapter covers study setting, design, method of survey, population and sample, method of data collection, method of measurement and the techniques of data analysis.
4.2. Research Design
The basic components of the research design, according to Opatha (2003) and Sekeran (1992) are type of the study, nature of the study and the time horizon of the study, which are presented in this section.
4.2.1. Type of the Study
The main objective of the study was to find out what factors contribute to Sri Lankan expatriates' adjustment in foreign assignments and their impact on job performance. Nine variables, which are considered to be important for Sri Lankan expatriate adjustment, have been considered as independent variables of this study. Expatriate adjustment has been considered as dependent variable. Secondly in analyzing the relationship between expatriate adjustment and job performance, adjustment factors were considered as independent variables and job performance is considered as dependent variable in the study. Thus the researcher attempted to establish the
72
relationships between these independent variables, and the dependent variable. Therefore, the type of investigation of this study was a correlational rather than a causal study. Correlation is a statistical technique for quantifiing the strength of association between variables (Rosenberg & Daly, 1993). In a correlational study, the research is conducted in the natural environment of the organizations minimizing the researcher's interference in the natural flow of events (Sekaran, 1992).
4.2.2. Nature of the Study
According to Sekeran (1992) studies that engage in hypotheses testing usually explain the nature of certain relationships, or establish the difference among groups or the independence of two or more factors in a situation. These studies are considered as analytical studies. Then, this study was analytical in nature rather than exploratory or descriptive because there are 10 hypotheses to be tested in the study to explain the nature of the relationship between the independent variables and the dependent variable.
4.2.3. Study Setting
This study is considered as a field study because it examines the factors affecting the Sri Lankan expatriates' adjustment in foreign assignments and their impact on the job performance in natural international working environment. No any artificial or contrived setting was created for the study. According to Sekaran (1992), correlation studies are usually done in a non-contrived field setting with minimal researcher interference.
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4.2.4. Time Horizon of the Study
The time horizon may be either cross sectional/ one shot (the data collection is done once) or over a period of several days/weeks/months or longitudinal study where data collection is done in more points in time (Sekeran, 1984; Opatha, 2003). This study was cross - sectional in nature because data for the study were collected within one month and there was no subsequent extension of the research contemplated
4.2.5. Unit of Analysis
Unit of analysis is the level of aggregation of the data during subsequent analysis stage (Opatha, 2003; Sekeran, 1992). In this study the Sri Lankan Expatriates on individual basis have been considered as the unit of analysis.
4.3. Research Methods
In this study the researcher has discussed, methodological choice, population, sample, data collection, validity and reliability of the questionnaire, the level of measurement of the variables and data analysis methods. Because of these reasons this study was considered as a scientific research in nature.
4.3.1. Methodological Choice
There are a few research methods such as structured observation, secondary analysis, content analysis, survey method and so on. Among these research methods, this study
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relied upon the survey method for the collection of the data as it was thought to be a more appropriate method. According to Rosenberg & Daly (1993), a survey is a technique for exploring the nature of personal characteristics and perceptions by analysing the answers to a set of carefully developed questions. The survey method is versatile in its greatest strength being the only practical way to gather various types of information and the most economical way in many situations (Emory, 1980). Therefore, the survey method is characterised by postal mailing and e-mailing the questionnaire as data collection method in this study. This study was purely based on primary data. The non-contrived field-setting environment was used to collect primary data. Therefore, the survey method was found to be more suitable to collect required original data because of its comparative advantages, position in terms of time and cost. The present study involves formulation and testing of hypotheses with a view to establish the correlations between the dependent variable and the independent variables. The study needed more reliable and original data to test the hypotheses.
4.3. 2. Population and Sampling
Population refers to the entire group of people, events, or things of interest that a researcher wishes to investigate (Sekaran, 1992). The total population relating to the study was all the expatriates who are working abroad attached to the Sri Lankan Organizations. However for the research purpose, the expatriates who are working in Sri Lankan Organizations which were registered in Ceylon Chamber of Commerce and National Chamber of Commerce in Sri Lanka were considered. According to the Company Registries of Ceylon Chamber of Commerce and National Chamber of Commerce in Sri Lanka, there were 950 companies which had registered for the year
75
2005. Among those companies 07 organizations directly had mentioned that they are having overseas branches. But there were some organizations having overseas branches but not included in the profile. In such cases the researcher had to refer to Websites, annual reports and contact the Human Resource Managers of such organizations. Consequently there were 15 Organizations doing business internationally by establishing
their own branches. Within those companies there
were 164 expatriates attached to the Sri Lankan organizations located in India, Bangladesh, Australia, Canada, Maldives, German, China, Russia, Taiwan, and Maldives. Basically those organizations were in the Banking, Apparel, Ayurvedics, Furniture, and Software industries. As such 164 expatriates were the total population of the study. All of them irrespective of their job positions were taken into consideration and therefore, no sampling method was involved in the study.
4.3.3. Data Collection Method
Postal mailing and the e-mailing methods were used to distribute the structured questionnaire (refer to appendix 01). The question items were used to present the relationship between the selected variables and expatriates' adjustment and job performance of the Sri Lankan Expatriates. The selected variables were based on the well famed research studies (Black, 1993; Black & Gregersen, 1994; Hodegtts & Luthans, 2000) which had been carried in the area on International Human Resource Management.
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The questions are simple, easy to understand, not lengthy nor double-barreled, nor leading to ambiguity or repetition. All the questions were forced-choice type and the Likert Scale with a five —point rating was used. The Likert scale improves the sensitivity of the questionnaire (Chen & Starosta, 2000).
The questionnaire consisted of eight sections. The first section of the questionnaire consisted of nine items related to personal and organizational characteristics of the respondents. Among them, nature of the organization, country, position, gender, age, marital status, international work experience, education and duration of the assignment were uincluded. The second part of the questionnaire was devoted to measure managerial competence of the expatriates by including five questions. Those questions covered planning, organizing, leading, communication and controlling ability of the expatriates. The third part of the questionnaire was developed to cover the selection practices of the related organizations. In this part the researcher included selection criteria and the selection methods. Fourth, fifth, sixth, seventh and eight sections covered pre-departure training, role expectations, role ambiguity, and cultural sensitivity of the expatriate respectively. All the questions used in the questionnaire were well accepted and pre-tested by Opatha (1996), Pareek (2002), Black (1992) and Chen & Starosta (2000).
IA
Table 41 Summary of the Questionnaire
Variable
Section
No of
Positive
Negative
Questions
Age
01
01
01
00
Working Experience
01
01
01
00
Length of time spent overseas
01
01
01
00
Managerial Competence
02
05
05
00
Selection Practices
03
25
25
00
Pre-departure training
04
27
27
00
Role Expectations
05
12
12
00
Role Ambiguity
06
15
15
00
Cultural Sensitivity
07
05
04
01
Expatriate Adjustment
08
08
08
00
Job Performance
09
14
14
00
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4.3.4. Validity and Reliability of the Questionnaire Validity refers to the extent to which an instrument measures what it is supposed to measure and a measuring instrument is valid when it does what is intended to do (Dunn, 2001; Opatha, 2003;). Validity can be measured through different forms such as content validity, criterion - related validity, and construct validity (Zikmund, 1997; Sekaran, 1 992)The questionnaire provides an adequate coverage by embodying an adequate number of items that represent variables of interest ensuring the content validity of the instrument. In constructing the questionnaire, serious thought was given to identify the variables, which were mostly related to the research problem and objectives. Hypotheses were formulated based on these variables and indicators or elements were developed by operationalising the variables. Content validity is concerned with the representativeness or sampling adequacy of the content of the measuring instrument, such as the items or questions it contains. As such content validity of the questionnaire was protected by embodying sufficient number of question items related to all the variables of interest in this study.
A measuring instrument is reliable if it consistently yields similar results at repeated administrations (Dunn, 2001; Opatha, 2003; Zikrnund, 1997; Sekaran,1992), Therefore, the questionnaire of this study had to be tested to see whether it yields similar results in repeated administrations. Reliability refers to a measure's stability or consistency across time (Dunn, 2001). It is how well the instrument consistently and stably measure whatever the concept it measures (Opatha, 2003; Sekaran,1992). To ensure the reliability of the questionnaire, test - retest method was used. According to the relevant literature, at least two different times the instrument should produce the same results if it is to be reliable. The same instrument was administrated to the same
VM
group in two or more occasions. The correlation of sets of scores of different administrations was calculated. The degree of correlation is known as the reliability coefficient. Here the most important factor is the time interval between different administrations; too short as interval can increase the likehood of true rating changes. Hence, two- week time interval was chosen between two administrations to minimise the demerits inherited in test - retest method.
4.4. Levels of Measurement of the Variables The variables in the research model such as age, working experience, length of time in overseas, managerial competence, selection practices, pre-departure training, role expectations, role ambiguity, cultural sensitivity, expatriate adjustment and job performance were measured through instruments with five point Lickert Scales. This was completed by the respondents themselves approximately as they have experienced. Apart of the relevant variables as in the conceptual model the researcher has used to collect data on education level of the expatriates, length of the assignment period, marital states, and gender in order to improve the awareness on background of the expatriates. All such variables of the study constilitte interval, ratio and nominal scales. The table 4.2 summaries and shows the levels of measurement used in the study.
Table 4.2: Levels of Measurement of the Variables Variable
Level of Measurement
1
Age
Ratio
2
Sex
Nominal
3
Marital Status
Nominal
4
Education
Ratio
5
Duration of the Assignment
Ratio
2
Working Experience
Ratio
3
Length of time in overseas
Ratio
4
Managerial Competence
Interval
5
Selection Practices
Interval
6
Pre-departure Training
Interval
7
Role Expectations
Interval
8
Role Ambiguity
Interval
9
Cultural Sensitivity
Interval
10
Expatriate Adjustment
Interval
11
Job Performance
Interval
4.4.1 Measuring Age of the Expatriates
Age was measured by asking the expatriates to provide their own current age within the age group: Below 30 years; 31 yrs - 40 yrs; 41 yrs-50 yrs; 51 yrs-60 yrs; Over 60 yrs
IN
4.4.2 Measuring Working Experience Working experience of the expatriates was measured by asking years of experience in the current position within the range of: less than 1 yr; 2-3 yrs; 4-6 yrs; and more than 7 yrs.
4.4.3 Measuring Length of time spent overseas This variable was measured by asking total international work experience within the range of: less than 1 yr; 2-3 yrs; 4-6 yrs; and more than 7 yrs.
4.4.4 Methods of Measuring Managerial Competence In the section 02 of the questionnaire, Managerial Competence of the expatriates was measured by using five dimensions planning, organizing, leading, communication and controlling, based on the definitions given by Stoner (1999).
Table No 4.3: Measurement of the Managerial Competence Variable
Dimension
Relevant
questions
to
measure as in the Section 02 Planning
Managerial
Organizing
2
Leading
3
Competence Communication Controlling
4 5
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The managerial competence of the expatriates was measured by their response to the questionnaire by using five Point Likert Scales. All those statements were developed as positive statements.
Scale
Point
Strongly Agree (SA)
05
Agree (A)
04
Neither Disagree nor Agree (NDN)
03
Disagree (DA)
02
Strongly Disagree (SD)
01
There are five statements to measure managerial competence. It was considered as a composite index by applying the holistic approach. Summing across the dimensional value created a composite measure for managerial competence.
4.4.5 Measuring Expatriate Selection Practices The Selection practices of the Expatriates were also measured by the questionnaire, which was a tested questionnaire developed by Opatha (1997). As given in the Opperationalized definition, expatriates selection practices basically were considered on selection criteria and selection methods as given in the section 03. The expatriate selection criteria included fifteen items as managerial talent, technical ability on the job, adaptability and flexibility, diplomatic skills, cultural empathy, interest in international work, age, experience in company, physical and emotional health, education, spouse and dependence, family support for the move, adaptability of family, and language aptitude as in the section 03 in the questionnaire. Expatriates
selection methods were included by ten items as interview of candidate, interview of candidates and their family, test to determine technical competence, test to determine relational abilities, assessment centers, performance appraisal records, superiors personal opinions, physical examination and evaluation of applicants as follows.
Table No 4.4: Measurement of the Selection Practices Relevant Variable Expatriate
Dimension
to
measure as in the Section 03
Selection Criteria
Part A- 1,2,3,4,5,6,758999
Selection Practices
questions
10,11,12,13,14,& 15 Selection Methods
Part B- 1,2,3,4,5,6,7,8,93 &lo
The researcher had attempted to get evidence whether those criteria were (A) Very seriously used (B) Used and (C) Not used. These selection criteria were measure by using three point Lickert type Scale. The selection methods have been used to know the extent to which those methods were applied for the respondents within the range of (A) Very high (B) High (C ) Moderate (D) Low and (E) Very Low . Here the research has used five point Lickert Scale to measure the items as follows.
Dimension
Selection Criteria
Scale
Points
Very seriously used
5
Used
3
Not Used
84
Selection Methods
Very High
5
High
4
(C) Moderate
3
(D)Low
2
(B) Very Low
In the instrument for measuring the Expatriate selection practices there were no negative statements. As the instrument, 25 statements were included to measure the selection practices, it was considered as a composite or index measure. Summing across the dimensional values created a composite measure of the selection practices.
4.4.6 Measuring Pre-departure Training As one of another independent variables, pre-departure training has been measured by including elements of pre-departure training, training techniques and availability of training for the family under the section 04.
Training elements were included by ten items and they were (a) characteristics of host country, (b) relationship between the foreign branchlsubsidiary and the rest of the firm, (c) the economic and political aspirations of the host country, (d) management practices particular to the host country, (e) comprehensive job description, (f) the overall objectives and goals you are expected to achieve, (g) language training,(i) area study, and (j) cross-cultural training. Apart from those training elements it covered whether the family members were included in the training and if so the nature of the training they received before the departure.
Similarly in the section 03, the researcher has included training techniques by fourteen items as lectures, reading materials, videotapes, cassettes, case studies, culture assimilators, sensitivity training, role-plays, field trip, simulations, meeting with expatriates, host-family surrogate, and interactive language training
Table No 4.5: Measurement of the Pre-departure Training Relevant Variable
questions
to
measure as in the Section 04
Dimension
Expatriate Pre- Training elements
Part A- 1,2,3,4,5,6,7,8,9, & 10
departure
Family training
Part B-I
Training
Training techniques
Part C-I,2,3,4,5,6,7,8,9, 10, 11,12,13,& 14
The training elements, family training and training techniques of the pre-departure training were measured by their responses to the questionnaire by using five Point Likert Scales.
Scale
I
Point
Always
05
Often
04
Some times
03
Rarely
02
Never
01
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In the instrument for measuring the Expatriate pre-departure training, there were no negative statements. As the instrument had 24 statements, it was considered as a composite or index measure. Summing across the dimensional values created a composite measure for the pre-departure training.
4.4.7 Measuring Expatriate Role Expectations The role expectations of the Expatriates were also measured by using the questionnaire, which was a standard questionnaire developed by (Black, 1992). According to him, role expectation of the expatriates was measured by using three dimensions as (a) job discretion expectations (b) job demand expectations and ( c) job constrain expectations.
Table 4.6: Measurement of the Role Expectations of the Expatriates Relevant Variable
Dimension Job discretion
Role
expectations
Expectations
Job demand
questions
to
measure as in the Section 05 1,2,3 & 4
5, 6, 7, 8, & 9,
Expectations Job constrain
10, 11, & 12
expectations
The role expectations of the expatriates were measured by their responses to the questionnaire by using five Point Likert Scale. Points were allocated as follows.
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Scale
Point
Veiy Low
01
Low
02
Average
03
High
04
Very High
05
4.4.8 Measuring Expatriate Role Ambiguity The role ambiguity of the Expatriates was also measured by using a questionnaire, which was a standard questionnaire developed by Pareek, (2002) to measure role clarity and by getting reveres order of the scale to measure role ambiguity as other researchers (Black & Gregersen, 1991; Black, 1994) have used. Pareek (2002) has presented the following to measure role ambiguity as (a) senior officers expectations (b) peers expectations ( c) juniors expectations and (d) task expectations
The role ambiguity of the expatriates was measured by their responses to the questionnaire by using five Point Likert scales, which was designed as follow.
Scale If you are quite clear, and know as much as you would
Point 01
like to know about it. If you are fairly clear about it
02
If you are clear many aspects, but not all
03
If you are rather unclear about it
04
If you have very little clarity, and you know very little
05
compared to what you would like to know
4.4.9 Method of Measuring Cultural-Sensitivity To measure cultural-sensitivity of the expatriates the Inter-cultural sensitivity scale ( ISS) developed by Chen & Starosta, (1996,1997) was used. In this scale there were five dimensions and the relevant questions in the questionnaire as follows.
Table 4.7: Measurement of the Role Ambiguity of the Expatriates questions
Relevant ariable
Dimension
to measure as in the Section 07
Engagement in inter-cultural interaction Respect for cultural difference
2
sensitivity Self confidence in intercultural
3
Cultural
interactions Enjoyment of inter-cultural
4
interaction Attentiveness in inter-cultural interaction
5
The cultural-sensitivity of the expatriates was measured by their responses to the questionnaire with five point Lickert Scale. As this questionnaire contained both positive and negative statements, two different scales were designed as given below. Question statements No 1, 2, 3, and 5 are the in a positive form and while question number 4 is in a negative forming the questionnaire. The developed scale for the positive statements has been in a reverse order fro the negative statement.
Scale
Positive Statements
Negative Statements
Point
Point
Strongly Agree (SA)
5
Agree (A)
4
2
Neutral
3
3
Disagree (DA)
2
4
Strongly Disagree (SD)
1
5
4.4.10 Measuring Expatriate Adjustment Expatriate adjustment in an international assignment was measured by using a questionnaire, which was a standard questionnaire developed by Black (1992) including three dimensions as (a) interaction adjustment (b) work adjustment and ( c) general adjustment.
Table 4.8: Measurement of the Expatriate Adjustment Relevant Variable
Dimension Interaction adjustment
questions
to
measure as in the Section 08 1,2,3 & 4
Expatriate Adjustment
Work adjustment
5, & 6
General adjustment
7&8
Point Likert scales was used to measure the responses as designed as follows.
Scale
Point
Very Low
01
Low
02
Average
03
High
04
Very High
05
4.4.11 Measuring Job Performance
As the dependent variable of this study, the job performance of the Sri Lankan expatriates was measured by an instrument developed by Opatha 2005. The job performance of the Sri Lankan expatriates was measured in term of three dimensions by giving more priority to measure expatriate results as discussed in conceptualization of the job performance in the chapter three as (a) traits (b) behaviour and (c) results.
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Table No 4.9 Measurement of Expatriate Job Performance Relevant
questions
to
Variable
Dimension
measure as in the Section 08
Expatriate
Traits
12,13 & 14
Job
Behaviour
8, 9,10 &1 1
Performance
Results
1,2,3, 4,5,6 & 7
The job performance of the Sri Lankan Expatriates was measured by their responses to the questionnaire by using five Point Likefl scales, which was designed as follow;
Scale
Point
Strongly Agree (SA)
5
Agree (A)
4
Neither Disagree nor Agree (NDN)
3
Disagree (DA)
2
Strongly Disagree (SD)
1
The instrument has included 14 statements to measure the job performance and summing across the dimensional value created a composite measure for the job performance.
4.5 Procedure for Data Analysis The questionnaire was analyzed and evaluated by using Statistical Package for Social Sciences (SPSS). Analysis methods were as follows.
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Univariate analysis Bivariate analysis Multivariate analysis
4.5.1 Univariate Analysis
Under Univariate analysis, the degree of occurrence or the level of existence of each variable on the sample was analyzed in terms of the degree of agreement of the respondents with the help of descriptive statistics (Kvanli & Guynes, 1989). Each and every variable in the section 01 of the questionnaire was analyzed using frequency distributions. The frequency plots for each and every item are expressed in percentage and presented in tables and diagrams such as Pie chart, and Bar chart,
The measure of central tendency was made for every variable in the research model. As these were measured with interval scale, the value was taken as the measure of the central tendency for this analysis. Beginning from the section 02 of the questionnaire the scale was five points Likert Scale and the range for decision making was calculated by using SPSS package as follows Range= Maximum Value - Minimum Value No of Levels and then the value was inserted to the following scale to measure the magnitude of the differences in the variable. Very Low
0
Low
1
Moderate
2
High
3
Very High
4
5
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Similarly, the Standard Deviation and the Variance were taken as the measure of dispersion for this analysis.
How ever single measure analysis indicates only a description of a particular variable. It does not explain any relationship of a particular variable to another. The basic objective of the investigation however is to demonstrate the relationships of the independent variables with anticipated change and restructuring the dependent variable. Therefore further analysis has been carried out.
4.5.2. Bivariate Analysis
This analysis involved simultaneous analysis of data measured on two variables (Gupto, 1971; Field, 2000) and find out Whether there is any association with the two variables. If so, ascertain the strength of the relationship. Whether one variable of primary interest can be predicted from the observation on the other variable, and determine a functional relationship between such Criterion (Dependent) variable and the Predictor (Independent) variable.
Hence, in this research bivariate analysis was made to determine: i
Whether there is any relationship between; The perceived factors and the international adjustment of the Sri Lankan Expatriates. The adjustment factors and job performance of the Sri Lankan Expatriates.
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ii What is the strength (Magnitude) of the relationship between those variables? The following statistical techniques were selected to do the above bivariate analysis. The Correlation Analysis The Simple Regression Analysis
4.5.2.1 Correlation Analysis
The correlation analysis was used to measure the magnitude and the direction of the relationship between two variables (Gupto, 1971; Field, 2000). The correlation analysis determines the degree to which the variables are related (Levin and Rubin, 2000), The correlation Coefficient, donated by "r" was the measure of the closeness of the relationship between two variables.
This will be focused on looking for strong relationship of the each independent variable with dependent variable by using the following formula.
R= I (Xi- X) (Yi-Y) (Xi- X)2 (Yi-Y)2 Where, R= correlation coefficient between X and Y Xi= ith response X Vi =ith response Y X= mean response on X Y= mean response on V
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This contains the following features. The value "R" lies between -1 and +1 The magnitude of "R" indicates the strength of the liner relationship while the sign indicates the direction. The values of "R" close to zero means that the liner association is very week An observed high correlation between two variables does not indicate any cause and effects relationship. i.e. it may be caused by the influence of another variable.
Hence the correlation analysis was made to measure the magnitude and the direction of the relationship between the following pairs of variables.
Whether there is a relationship between perceived factors and international adjustment of the Sri Lankan Expatriates (i.e the extent to which managerial competence influences on international adjustment of the Sri Lankan Expatriates).
Whether there are relationships between expatriate adjustment factors and job performance of the Sri Lankan Expatriates.
4.5.2.2 Simple Regression Analysis The simple regression analysis was used in this research to determine the functional relationship between a Dependent Variable and an Independent Variable (a predictor) or the purpose of prediction and making other influences (Gupto, 1971; Mason, Lind & Marchal, 1999; Field, 2000). The regression analyses show how to determine both
the nature and the strength of a relationship between two variables (Levin & Rubin, 2000). It analyzed the following three main aspects.
The relationship between a Dependent variable and an Independent Variable (Predictor) The strength of the relationship Statistical significance of the relationship
Hence, the Simple Regression Analysis was made to determine the functional relationship between the following set of a Dependent Variable and an Independent Variable.
The perceived factors as independent variables and international adjustment of the Sri Lankan Expatriates as a dependent variable
Adjustment factors as independent variables and job performance as a dependent variable.
4.5.2.3 Multiple Regression Analysis
The principal advantage of multiple regressions is that it allows using more of the information available to estimate the variable (Levin and Rubin, 2000). Correlated analysis provides only a significant association between each independent variables (perceived factors) and dependent variables (adjustment factors and job performance). Sometimes the correlation between two variables may be insufficient to determine a
97
reliable estimating equation (Levin & Rubin, 2000). The regression model always indicates by how much (beta value) each variable could affect the dependent variables.
Thus the technique of multiple linear regressions explains the behavior of a dependent variable using more than one predictor (independent) variable simultaneously. The statistical model can be written as:
Y=B0 +B1X1 +B2 X2 +B3 X3 + ....... BkXk +E According to the research model, the formula will be
EAD = 00 + 3lAg +p2WE + P3LT +34MC + P5SP + J36PT + 37RE+ 8RA+ 139CS+ E EJP = ]30 +
33LT +134MC .+ 35SP+ 136PT+ 07RE+ 138RA+ 39CS
+E
Where EAD= Expatriate Adjustment
RARole Ambiguity
EJP= Expatriate Job Perfornrnnce
MC= Managerial Competence
Ag=Age
SP=Selection Practices
WS=Working Experience
PT=Pre-departure Training
LT=Length of time spend in overseas
RE=Role Expectation
CSCultural Sensitivity * Applicable if the factor is positively related to expatriate adjustment only.
4.6. Hypothetical Testing 4.6.1 Hypotheses testing using Correlation Analysis
Hypothesis 01 The Null Hypothesis was formulated as Hn i: Age is not related to international adjustment of the Sri Lankan Expatriates.
The alternative hypothesis was formulated Ha i: Age is positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 02 The Null Hypothesis was formulated as Working Experience is not related to international adjustment of the Sri Lankan Expatriates.
The alternative hypothesis was formulated Ha2: Working Experience is positively related to international adjustment of the Sri
Lankan Expatriates,
Hypothesis 03 The Null Hypothesis was formulated as Length of time spent overseas is not related to international adjustment of the Sri Lankan Expatriates.
MG
The alternative hypothesis was formulated Length of time spent overseas is positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 04 The Null Hypothesis was formulated as H 4; Managerial Competence is not related to international adjustment of the Sri Lankan Expatriates.
The alternative hypothesis was formulated Managerial Competence is positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 05 The Null Hypothesis was formulated as H 5: Selection practices are not related to international adjustment of the Sri Lankan Expatriates.
The alternative hypothesis was formulated Selection practices are positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 06 The Null Hypothesis was formulated as
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Hno: Pre-departure tlaining is not related to international adjustment of the Sri Lankan Expatriates.
The alternative hypothesis was formulated Ha6: Pre-departure training is positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 07 The Null Hypothesis was formulated as Role Expectations are not related to international adjustment of the Sri Lankan Expatriates.
The alternative hypothesis was formulated Hai: Role Expectations are positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 08 The Null Hypothesis was formulated as Role Ambiguity is not related to international adjustment of the Sri Lankan Expatriates.
The alternative hypothesis was formulated Has: Role Ambiguity is negatively related to international adjustment of the Sri Lankan Expatriates.
101
Hypothesis 09 The Null Hypothesis was formulated as Hn9: The Cultural-sensitivity is not related to international adjustment of the Sri Lankan Expatriates.
The alternative hypothesis was formulated Ha9: The Cultural-sensitivity is positively related to international adjustment of the Sri Lankan Expatriates.
Hypothesis 10 The Null Hypothesis was formulated as HnIO: Expatriate adjustment factors are not related to job performance of the Sri Lankan Expatriates.
The alternative hypothesis was formulated 11a10 Expatriate adjustment factors are positively related to job performance of the Sri Lankan Expatriates.
Therefore the decision rule Reject H0 and Accept H If R>0 when P 5 0.05 Where P=Level of significance
MJ
4.6.3. Hypothesis Testing using Regression Analysis
Using simple regression The simple regression equation is Y = A + B1 X1 For a one - tailed test, The Null Hypothesis was formulated as H0: B1 0 (Xi variable affects positively and significantly Y variable)
Decision Rule Reject H. if/ti >taf2, n-2 Where t is the Test Statistic
Using Multiple Regression The Multiple Regression model in general is as Y1 = B. + B1 X11 + BX12 + ..........BkXjk + P1 Where,
I = 1,2,3,..... n X 1 , X2, X, = Value of the Predictor Variable (Independent Variable) Y1= Corresponding value of the Criterion Variable (Dependent Variable) B0 B1 , Bk= Parameters (Coefficient of Regression)
For a one - tail test, The Null Hypothesis was formulated as H0: All Bi's are zero or less than zero (B10)
Decision Rule Rejected H. if t statistic value exceeds with n-k-i degree of freedom or if/ti tJ2, n-k-i Where, n = sample Size K = No of independent variable a = Significant level for one - tailed test.
4.7 Summary The chapter was devoted to present methodology of this study. Study setting, design, method of survey, population and sample, method of data collection, method of measurement and the techniques of data analysis have been included. Presenting the techniques of data analysis has described correlation analysis, simple regression analysis and multiple regression analysis. Hypothetical testing by using correlation analysis and regression analysis was presented as the final section of the chapter.
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Chapter Five DATA PRESENTATION AND ANALYSIS
5.1 Introduction
In this chapter, it included background information of the respondents, results of frequency distribution of the variables. Further it has presented the relationship between independent variables and dependent variable of the study in order to test the hypotheses.
5.2 Analysis of Reliability and Validity of the Questionnaire
In order to measure the external reliability of the research instrument, test-retest method was used by giving the questionnaire to the selected ten Sri Lankan Expatriates who work in India and Bangladesh. This was done within a two—week time interval between the two administrations (Refer appendix No 01). The coefficient of the instrument was 0.912 and this value is statistically enough to claim that the instrument has a higher external reliability.
By using Cronbach's Alpha test, inter-item consistency (internal reliability) of the instrument was tested. If the Cronbach's Alpha coefficient of the variable is higher than 0.7 it can be concluded that the instrument measuring the variable possesses a reasonable degree of inter-item reliability (Refer appendix No.02).
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Instrument
Cronbach's Alpha
Managerial Competence
0.8394
Selection Practices
0.7653
Pre-departure training
0.7563
Role Expectations
0.9054
Role Ambiguity
0.7254
Cultural Sensitivity
0.7336
Expatriate Adjustment
0.7538
Job Performance
0.9883
As in the above table, the highest Cronbach's Alpha correlation was represented by the item of job performance and, a closer value to that was represented by role expectation. Rests of the variables have varied around a maximum of 0.8394 and minimum of 0.7254. All the instruments used to measure the variables have sufficient degree of internal reliability.
Validity of the research study was based on conceptualization and opretionalization of the variables on literature. Developing a working definition, the research has identified dimensions and elements of the each variable. The research instruments were developed with careful supervision of the supervisor. Some instruments were developed by noted authors. Hence, content validity of the instruments was assured.
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5.3. Univariate Analysis 5.3.1 Frequency Distribution Analysis of Respondents by their Personal Characteristics Data on personal characteristics of the respondents have been collected on the section 01 of the survey questionnaire served for this purpose. Data on job position, gender, marital status, age, educational qualifications, duration of the assignment are also gathered. Results obtained from the data analysis are explained below.
5.3.1.1 Job Positions of the Respondents
Table 5.1 Job Positions of the Respondents Frequency
Percentage %
Country Managers
07
7.46
Senior Managers
35
37.23
Junior Managers
52
55.31
Total
94
100
Job Positions
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Figure 5.1 Job Positions of the Respondents
Job Position of the Respondends 94 _L
100 80 60
c
oCountry Managers
52 35
Senior managers
20 Ir]
D Junior managers
8
oTotal
-
E Job Position
As in the above, among the ninety four number of the respondents, seven were country managers while fifty two and thirty five of them were junior managers and senior managers respectively.
5.3.1.2 Age of the Respondents Table 5.2 Age distribution of the respondents Frequency
Percentage %
00
00
31 yrs to 40 yrs
30
31.91%
41 yrs to 50 yrs
35
37.24%
51 yrs to 60 yrs
29
30.85%
00
00
100
100
Age Group Below 30 yrs
Over 60 yrs Total
108
Figure 5.2 Age distribution of the Respondents Frequency
51 yrs to 60 yrs 31%
1 yrs to 40 yrs 32%
o Below3oyrs 31 yrs to40yrs o41 yrs to 50 yrs 051 yrs to6oyrs O'.er6oyrs
41 yrs to 50 yrs 37%
With regard to the age distribution of the respondents, no expatriate manager comes within the age group below 30 years, and above 60 years. Among the respondents 30 respondents (around 32%) were between 31-40 years, and 35 (around 37%) were between 41-50 years. These numbers slightly differ among the respondents of age group 51-60 in the sample. They were 31 and approximately 3 1 % of the sample.
5.3.1.3 Gender Distribution of the Respondents
Table 5.3 Frequency of Male and Female Gender
Frequency
Percentage %
Male
94
100
Female
00
00
It is significant to state here that all the expatriates were male.
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5.3.1.4 Level of Education
Analyses of the education level of the respondents are given in the table below. Table 5.4 Educational levels of the Respondents Category
Frequency
Percentage %
Advance Level
00
00
Diploma in the relevant
06
6.38
26
27.65
Postgraduate Diploma
29
30.85
Master's degree
30
31.91
Other Qualifications
03
3.19
Total
94
100
field Bachelor's degree with diploma
According to the above , all the respondents have obtained their secondary education. Among them, around 6% have diplomas in the relevant field and 28% have degrees with a diploma in the relevant field. But at the postgraduate diploma level it was approximately 31%. Around 32% expatriates were qualified with master's degrees while three respondents qualified in the field of accountancy and marketing under other qualifications. Figure 5.4 presents a graphical presentation of these figures.
110
Figure 5.3 Level of Education Educational Qualification of the reD 35 30
I
Doma in the relevant field
-
----
OG)
-
u Advance Leval
30
26
.2 o
2
Bachelors degree wfth diploma Postgraduate Diploma Masters degree
0
a-
Or
Other Qualitications
Qualification
5.3.1.5 Duration of the Assignment
Duration of the assignment period of the expatriates is grouped in to five scales and the available data is presented as follows.
Table 5.5 Duration of the Assignment Category
Frequency
Percentage
For less than 1 yr
0
0
Forlyr
0
0
For2yr
18
9.14
For3yr
51
54.25
Morethan3yr
25
26.61
Total
94
100
%
111
Figure 5.4 Duration of the Assignment Duration of the assignment
rvbre than 3 y r, 25
For 2 yr, 18 For less than 1 yr For 1 yr 0 For 2 yr For 3 yr vre than 3 yr For 3 yr, 51
It was evident from the above table that no expatriates who were appointed for less than 1 year or for 1 year assignment period. Out of 94 respondents majority (51 respondents) were appointed for 3 years period. Even though this was match with the world literature, there were expatriates who were appointed for 2 years and more than 3 years assignment period as well. That amount was 18 and 25 for 2 years and more 3 yeas respectively.
5.3.2 Frequency Distribution Analysis of Independent and Dependent Variables
5.3.2.1 Frequency Distribution for Age of the Sri Lankan Expatriates
The mean value of the age of the Sri Lankan Expatriates was approximately 49 years. But this can be varying in between 47 to 52 years (Standard Deviation was 2.8).
112
Therefore this mean value is not a good predictor to generalize the sample ( refer appendix 03-A).
5.3.2.2 Frequency Distribution for Working Experience of the Sri Lankan Expatriates
To measure the variable namely working experience of the expatriates the researcher has used four scale and the scores were assigned ranging from one to four.
Table 5.6 Transformation of the level of Work Experience of the Sri Lankan Expatriates
Scale
Score
Less than 1 Year 2-3 years
2
4-6 Years
3
More than 7 Years
4
The calculated mean value for the variable is 3.4316 and it is approximately 3. This score represents the value range 4-6 years of working experience of Sri Lankan Expatriates. This value can be generalized for the sample with 0.7094 of Standard Deviation (refer appendix 3-13).
113
5.3.2.3 Frequency Distribution for length of time spent overseas by Sri Lankan Expatriates
This variable was calculated by giving four scales as follows.
Table 5.7 Transformation of the length of time spent overseas by Sri Lankan Expatriates Scale
Given Score
Less than 01 year
I
2-3 Years
2
4-6 Years
3
More than 7 Years
4
The mean vale for the variable is 3.4312 with 0.7094 of Standard Deviation. As in the above table this mean value is in the range of 4-6 years and statistical evidence is enough to generalize that length of time spent overseas by the Sri Lankan Expatriates is in between 4-6 years (refer appendix 3-C).
5.3.2.4 Frequency Distribution of Managerial Competence of the Sri Lankan Expatriates
Five questions items were developed for this variable. The scale was assigned according to the five point Likert Scale and total score (number of questions were 05) was converted as follows.
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Range= Maximum Value- Minimum Value No of levels =
25-5 5
=4 Figure 5.5 Continuum showing the degree of managerial competence of the Sri Lankan Expatriates Very High
High
Moderate
Low
Very Low
5
9
13
17
21
25
0
1
2
3
4
5
According to the analysis, mean value of this variable is 4.695 with the 0.2109 standard deviation (refer appendix3-D) of the selected sample of 94 Sri Lankan Expatriates respond. Thus managerial competence of almost all the Sri Lankan Expatriates is in the "very high" range. Further this value can change in between 4.476 to 4.9059 by conforming the above result again.
Further this sample information was used to estimate the population mean where standard error of the mean was calculated to see how close the sample mean is to the true population mean.
Standard Error
= Standard Deviation Sample size = 0.2109
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164 =0.002 At the 95% of confidence level, managerial competence of the population must lie within the range of 4.695 ± 1.96 x 0.002. As such population mean lays between 4.692 and 4.698. These statistics provide evidence to conclude that managerial competence of the Sri Lankan Expatriates is in very high at the 95% confidence level.
5.3.2.5 Frequency Distribution of Selection Practices
Using five point Likert scale the researcher has used twenty five questions to measure the variable. The total score was converted as follows.
Range= Maximum Value- Minimum Value No of levels =
125-25
5 =20 Figure 5.6 Continuum showing the degree of selection practices related to the Sri Lankan Expatriates
25 0
45
65
1
2
Very High
High
Moderate
Low
Very Low
85
115
3
4
125 5
116
The mean value of this variable is 3.5674 with the 0.1358 standard deviation (refer appendix 3-B) of the selected sample of 94 Sri Lankan Expatriates respond. Thus selection practices with regard to the Sri Lankan Expatriates are at a "higher" level. Further the tenancy to change the value is 3.4316 (3.5674-0.1358) to 3.7032 (3.5674+0.1358) by conforming the above result again.
Further this sample information was used to estimate the population mean where standard error of the mean was calculated to see how close the sample mean is to the true population mean.
Standard Error
= Standard Deviation "JSample size = 0.1358
'1 164 = 0.0008 At the 95% of confidence level, selection practices of the population must lie within the range of 3.5674 ± 1.96 x 0.0008. As such population mean lays between 3.5689 and 3.5659. These statistics provide evidence to conclude that selection practices relating to the Sri Lankan Expatriates are in a higher level at the 95% confidence level.
117
5.3.2.6 Frequency Distribution of Pre-departure Training
The researcher has used twenty four questions to measure the variable in the form of five point Likert Scale. The total score varies in between the maximum value of 120 and minimum value of 24, showing the degree of changers within the range very low to very high.
Range= Maximum Value- Minimum Value No of levels =
120-24 5
= 19.2 Figure 5.7 Continuum showing the degree of Pre-departure training related to the Sri Lankan Expatriates Very High
High
Moderate
Low
Very Low
I
I 24 0
43.2 1
62.4
81.6
100.8
2
3
4
120 5
As indicated above the mean value of the distribution is 3.1553. This figure varies between 3.0168 to 3.2938 with 0.1385 standard deviation ( refer appendix 3-F). Thus Pre-departure training provided to the Sri Lankan Expatriates is in a "higher" level. Further this sample information was used to estimate the population mean where standard error of the mean was calculated to see how close the sample mean is to the true population mean.
118
Standard Error
= Standard Deviation
iSamp1e size = 0.1385 164 =0.0008 At the 95% of confidence level, managerial competence of the population must lie within the range of 3.1553 ± 1.96 x 0.0008. As such population mean lay between 3.1545 and 3.1561. These statistics provide evidence to conclude that Pre-departure training practices relating to the Sri Lankan Expatriates are in a higher level at the 95% confidence level.
5.3.2.7 Frequency Distribution of Role Expectation
To measure role expectations of the Sri Lankan Expatriates, there were twelve questions ranging from one to five. The total score varies in between the maximum value of 60 and minimum value of 12 to indicate the degree of role expectations of Sri Lankan Expatriates, varying from very high to very low degree of role expectation.
Range= Maximum Value- Minimum Value No of levels =
60-12 5
=
9.6
119
Figure 5.8 Continuum showing the degree of Role Expectation of the Sri Lankan Expatriates
12
0
31.2
21.6
2
1
Very High
High
Moderate
Low
Very Low
40.8
50.4
60
3
4
5
According to these figures there is statistical evidence to claim that role expectations of the Sri Lankan Expatriates is in a "very high" condition. Because the mean value of role expiation is 4.7957 with 0.2935 value of standard deviation (refer appendix 3-0). Even though there is a tendency to change this mean value by +1- 0.2935 the minimum and maximum value lay in between 4.5022 to 05.
Further this sample information was used to estimate the population mean where standard error of the mean was calculated to see how close the sample mean is to the true population mean.
Standard Error
= Standard Deviation Sample size 0.2935 164 = 0.0078
120
At the 95% of confidence level, role expectations of the Sri Lankan Expatriates lie within the range of 4.7957 ± 1.96 x 0.0078. As such population mean lays between 4.7805 and 4.8109. These statistics provide evidence to conclude that role expectations of the Sri Lankan Expatriates are in a higher level at the 95% confidence level.
5.3.2.8 Frequency Distribution of Role Ambiguity
Role ambiguity of the Sri Lankan Expatriates was measured by using fifteen question items which were developed in the form of five point Likert Scale. The scale for this variable ranges from maximum value 75 and minimum value 15. The total score was converted in to five point Likert Scale as follows.
Range= Maximum Value- Minimum Value No of levels =
75-15 5
=
12
Figure 5.9 Continuum showing the degree of Role Ambiguity of the Sri Lankan Expatriates
I
Very High
High
Moderate
Low
Very Low
I
I
I
15
27
39
51
63
75
0
1
2
3
4
5
121
The calculated mean value for the variable "Role Ambiguity" is 2.0482. As in the above continuum, this value shows a "moderate" level of existence of role ambiguity among the Sri Lankan Expatriates. There is a 02312 chance to vary the value in between 1.817 to 2.2794 because the calculated standard deviation is 0.2812 (refer appendix 3-H).
Further this sample information was used to estimate the population mean where standard error of the mean was calculated to see how close the sample mean is to the true population mean. Standard Error
= Standard Deviation \JSample size = 0.2312
'1 164 = 0.00409 At the 95% of confidence level, role ambiguity of the Sri Lankan Expatriates lie within the range of 2.0482 ± 1.96 x 0.00409. As such population mean lays between 2.0402 and 2.0562. These statistics provide evidence to conclude that role ambiguity of the Sri Lankan Expatriates are in a moderate level at the 95% confidence level.
5.3.2.9 Frequency Distribution of Cultural -Sensitivity
The researcher has used five questions to measure the variable by using five point Likert Scale. The scale for this variable ranges from maximum value 25 and minimum value 05. The total score was converted in to five point Likert Scale as follows.
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Range= Maximum Value- Minimum Value No of levels =
25-05 5
=
4
Figure 5.10 Continuum showing the degree of Cultural -Sensitivity of the Sri Lankan Expatriates
05 0
Very High
High
Moderate
Low
Very Low
09
13
17
1
2
3
21
25
4
5
The calculated mean value for the variable "Cultural —Sensitivity" is 4.1872. As in the above continuum, this value shows a "very high" range. Standard Deviation of the variable was 0.2287 and therefore there is a tendency to change the value in between 3.9585 to 4.4159 (refer appendix 3-I).
Further this sample information was used to estimate the population mean where standard error of the mean was calculated to see how close the sample mean is to the true population mean.
Standard Error
= Standard Deviation iSample size =0.2287
123
164 = 0.0039 At the 95% of confidence level, cultural sensitivity of the Sri Lankan Expatriates lie within the range of 4.1872± 1.96 x 0.2287. As such population mean lays between 3.739 and 4.6354. These statistics provide evidence to conclude that culturalsensitivity of the Sri Lankan Expatriates are in a moderate level at the 95% confidence level.
5.3.2.10 Frequency Distribution of Expatriate Adjustment
There were eight questions to measure international adjustment ability of the Sri Lankan Expatriates. Using five point Likert scale with maximum value 40 and minimum value 8 the total score was converted as follows.
Range= Maximum Value- Minimum Value No of levels =
40-08 5
=
6.4
Figure 5.11 Continuum showing the degree of international adjustment of the Sri Lankan Expatriates
I 08
14.4
0
1
Very High
High
Moderate
Low
Very Low
H
I
I
I
20.8
27.2
33.6
2
3
4
40 5
124
According to the analysis, mean value of this variable is 4.7806 with the 0.2518 standard deviation (refer appendix 3-J) of the selected sample of 94 Sri Lankan Expatriates response. Thus the international adjustment almost all the Sri Lankan Expatriates is "very high". Further this value will vary from 4.5288 (4.7806-0.25 18) to 5.0324 (4.7806+0.2518) by conforming to the above result again.
Further this sample information was used to estimate the population mean where standard error of the mean was calculated to see how close the sample mean is to the true population mean.
Standard Error
= Standard Deviation 'JSample size =0.25 18 164 = 0.0053
At the 95% of confidence level, role ambiguity of the Sri Lankan Expatriates lie within the range of 4.7806± 1.96 x 0.2518. As such population mean lies between 4.2870 and 5.274128. These statistics provide evidence to conclude that the international adjustment of the Sri Lankan Expatriates are in a very high level at the 95% confidence level.
125
5.3.2.11 Frequency Distribution of Job Performance
There were eight questions to measure job performance of the Sri Lankan Expatriates. Using five point Likert scale with maximum value 70 and minimum value 14 the total score was converted as follows. Range= Maximum Value- Minimum Value No of levels =
=
70-14
11.2
Figure 5.12 Continuum showing the degree of job performance of the Sri Lankan Expatriates Very High
High
Moderate
Low
Very Low
I
I
I
14
25.2
36.4
47.6
58.8
0
1
2
3
4
70 5
The calculated mean value for the variable "job performance" of the Sri Lankan Expatriates is 4.7538 . As in the above continuum, degree of job performance of Sri Lankan Expatriates is in a very high level. Standard Deviation of the variable is 0.4035 and therefore there is a tendency to change the value in between 4.3503 to 5.1573 (refer appendix 3-K)
Further this sample information was used to estimate the population mean where standard error of the mean was calculated to see how close the sample mean is to the true population mean.
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Standard Error
= Standard Deviation 'iSample size =0.4035 164 = 0.0024
At the 95% of confidence level, job performance of the Sri Lankan Expatriates lie within the range of 4.7538± 1.96 x 0.0.0024. As such population mean lays between 4.7491 and 4.7585. These statistics provide evidence to conclude that job performances of the Sri Lankan Expatriates are in a very high level at the 95% confidence level.
5.4 Bivariate Analysis
The Bivariate analysis includes the Correlation analysis and the Simple Regression analysis which were used to investigate any relationship between independent and dependent variables.
5.4.1 Correlation Analysis The purpose of this section is to calculate correlation between independent variables and dependent variables of the research model. At the end of the chapter it will be able to achieve objective 01, 02, and 04. At the same time it will test the formulated hypotheses of the study as well.
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5.4.1.1 Relationship between Age and International Adjustment of the Sri Lankan Expatriates
Table 5. 8 Relationship between age and international adjustment of the Sri Lankan Expatriates Hypothesis 01 H 1 : Age is not related to international adjustment of the Sri Lankan Expatriates.
Hai: Age is positively related to international adjustment of the Sri Lankan Correlations
Age
Pearson Correlation Sig. (1-tailed)
Expatriate Adjustment
N Pearson Correlation Sig. (1-tailed) N
Age 1.000
Expatriate Adjustment .024
.
.410
94
94
.024 .410
1.000
94
94
Desired level of significance is 0.05. As the formulated alternative hypothesis is directional, one-tailed test was applied. The results of the correlation test are given in table 5.9. According to that, Pearson's correlation (r) between the age of the Sri Lankan Expatriates and their international adjustment is r = 0.024 which is positive. But it does not indicate any significant relationship because p value is greater than 0.05 (0.410 >0.05).
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There is no statistical evidence to reject the null hypothesis that age is not related to international adjustment of the Sri Lankan Expatriates. 1-lence, the formulated alternative hypothesis that age is positively related to international adjustment of the Sri Lankan Expatriates can not be accepted. It can be concluded that there is no positive relationship between age and international adjustment of the Sri Lankan Expatriates as the data do not substantiate.
5.4.1.2 Relationship between Working Experience and International Adjustment of the Sri Lankan Expatriates
Table 5.9 Relationship between Working Experience and International Adjustment of the Sri Lankan Expatriates Hypothesis 02 H2: Working Experience in the parent company is not related to international adjustment of the Sri Lankan Expatriates.
Ha2: Working Experience in the parent company is positively related to international adjustment of the Sri Lankan Expatriates.
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Correlations
Expatriate Adjustment
working Experience Current position
Pearson Correlation Sig. (1-tailed) N Pearson Correlation
Expatriate Adjustment 1.000 .
Sig. (1-tailed) N
94 .197* .029 94
working Experience Current position .197* .029 94 1.000 95
. Correlation is significant at the 0.05 level (1-tailed).
To test the second hypothesis of this study the researcher has used Pearson's correlation again. According to the results of the above table, Pearson's correlation (r) between the Working Experience of the Sri Lankan Expatriates and their international adjustment is 0.197 which is positive. Since the P value is less than 0.05 ( 0.029