The problems expatriates encounter in foreign countries

1.1. Introduction

An expatriate relocating to another country for an international assignment often faces a variety of difficulties. These difficulties may compromise the international assignment especially if the expatriate feels isolated and alone in the host country (Hayes, 1996; Melles, 2002; Moss, 2000; Selmer, 2001). Adjustments to a new country can be difficult especially when familiar things the expatriate have come to know his/her life are no longer the same in the host country. Culture is one of the most important contributing factors to adjustment and the expatriate’s feelings of isolation (Hayes, 1996; Thompson, 1992). It is therefore important to be sensitive and aware of cultural differences and how it affects feelings of isolation and ultimately the assignment’s success (Burkitt, 1998; Phillips, 1993; Moss, 2000). Women expatriates face the extra challenge of overcoming the host culture’s perception of female roles on top of the differences in culture (Cook, 2000; Grove & Hallowell, 1997). It can be quite difficult for a woman expatriate to compete in a position in which have been historically dominated by men.

This report explores cultural nuances that would have influence on the expatriate’s personal feelings and the success of the international assignment. The purpose of this report is to provide the authors with the potential problems expatriates face and possible coping strategies to overcome these problems. The authors acknowledge the importance of international experience in both personal and professional development and are interested in seeking international experience. Language, management style, cultural shock, racial stereotypes, and the problems faced by female expatriates are discussed below.

Note that culture consist of a myriad of variables, not all these variables can be discussed within the scope of this paper, the authors have picked out the variables they have considered important for their development. The authors have also picked China as a reference for this paper due to personal interests. Note that although the principles are similar cross culturally, China is a unique culture and there may be limitations in applying the findings of this report for other cultures.

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2.1. Culture Shock

Culture shock is a phenomenon that involves an emotional disorientation that a person suffers when he/she moves to a foreign land where he/she is unfamiliar with the new environment (Caudron, 1992; Hayes, 1996). Culture shock involves the abrupt loss of the familiar, resulting in a lost of identity and feelings of isolation When an individual enters a strange culture, most or all of the familiar cues he/she has lived with all his/her lives are removed (Gordon, 2003; Kitsuse, 1992; Living with and Avoiding Culture Shock, 2003; Phillips, 1993). The lost of these cues make the individual feel like a ‘fish out of water’.

Often when a person moves to a foreign country there is a period of excitement when everything seems new and challenging. In the beginning similarities between cultures are more apparent than differences (Hayes, 1996; Selmer, 2001). Everyone seems to have the same routine and lifestyle (Kitsuse, 1992). It is not until this welcoming period ends that the newcomer begins to realize that there are endless subtle differences that leave him/her with problems. For example, in China subtle differences exist that may frustrate the expatriate because it is not common practice or even frowned upon in his/her culture (Atkins, 1996; Tan 2002). These are discussed further below in ‘Management Style’. All these difficulties make the expatriate uncomfortable and feel isolated.

Moreover, the expatriate may be a victim of stereotypes that may add to his/her isolation. Racial stereotypes can contribute negatively to the expatriate’s already isolated emotion (Burkitt 1998; Odenwald 1993; Thompson 1996). Like other parts of the world, China is not without the problem of racism. Unlike Australia, a country built by immigrants, China is not culturally bound to welcoming foreigners (Bapat, 2000). Australians working in China may initially find themselves not privy to certain information in the business relationship (Barclay, 2001; Chung, 1991; Crookes & Thomas, 1998; O’Keefe & O’Keefe, 1997). Moreover, Chinese culture as a rule avoids taking certain risks and trust only personal relationships to do business. The new expatriate is still deemed as untrustworthy.

Expatriates can usually overcome this ‘cold shoulder’ treatment by showing sensitivity to Chinese culture and customs. Becoming interested in the Chinese culture and Chinese people in general is one way in which to build rapport with Chinese clients and colleagues (Melles, 2002; Xing, 1995). Personal relationships are held in high-esteem by Chinese individuals, without one, there is no business relationship (Yamaguchi, 1999).

Interestingly, Bapat (2000) notes that in China, fair skin is a sign of beauty and dark skin is looked down upon. A Chinese superstition equates anything dark with evil (Bapat, 2000; Beck & Dorinda, 1989). Although this would present a problem for dark skinned expatriates, it might provide a blessing of some sorts to white skinned expatriates. For example, white skinned women expatriates may be subjected to special treatments and find making business contacts easier because Chinese clients and colleagues are attracted to their skin colour and are curious about them (discussed further below). On the other hand, having white skin may become a burden. White skin may attract the Chinese so much that it deters from the business and management objectives (Barclay, 2001; O’Keefe & O’Keefe, 1997). For example, although white skinned expatriates may be viewed beautiful and attractive, the Chinese may also equate this with intelligence and or knowledge. Chinese colleagues and clients may become overly too dependent on the expatriate to provide them with guidance and knowledge (Barclay, 2001). This may become frustrating especially in situations where the expatriate is trying to build autonomy in the workplace, or training Chinese locals to take over certain positions.

It is difficult and frustrating when one becomes the subject of racial stereotypes. However as a newcomer to a foreign country it should be expected that locals will have preconceived ideas about the newcomer. Not much can be done about their preconceived ideas; however these ideas can be altered. What is important for the expatriate to know is that what he/she does upon arriving will determine future relationships with the locals (Black & Gregersen, 1999; Caudron, 1991; Crookes & Thomas, 1998). Discussed below are the importances of being culturally sensitive to the Chinese culture to dispel myths the Chinese have of the Westerner expatriate as being arrogant, and to form business relationships that will be conducive to the success of the assignment.

3.1. Expatriate Clubs: Support or Ghettos?

Not all expatriates have an active reaction to culture shock. That is, not all expatriates seek out to understand the cultural nuances of the host country and use this information to better business and personal relationships. Gordon (2003) notes that victims of culture shock may behave in many extremes. He/she may give up his/her own identity and try to imitate all customs and attitudes of the host culture, or solve the problem by regressing into a shell and refusing to learn the local language and befriend people of the local culture. The latter individuals may only seek and befriend other expatriates, or individuals with similar cultures to themselves. They will usually seek out other expatriates to provide them with supportive network while at the same time complaining about some of the strange behaviours locals partake in without any real effort to understand (Crookes & Thomas 1998; Hayes 1996).

Discussed below is the controversial topic of expatriate clubs or ghettos. It has been argued that such clubs provide a supportive network for the expatriate who is uprooted from the home country and thrust into unfamiliar surroundings (Hailey, 1996; Moss, 2000). However it is also argued that clubs may inhibit integration into the host culture by reinforcing unhappy expatriate’s stereotypes of his/her local counterparts (Caudron 1991; Melles, 2000). This will have negative implications for business relationships as individual expatriates believe the stereotypes and behave in such a way that creates self-fulfilling prophecies of the stereotypes.

Expatriates often feel uncomfortable in the initial transition process. Missing familiar things and familiar people will drive the expatriate to seek out certain things in the host country to replace these losses. This may encourage expatriates to only socialize with certain groups of people, for example other Australians, or people who share the similar cultural values and attitudes as the expatriate themselves (Hailey, 1996; Hayes, 1996; Moss, 2000). This often results in a conglomeration of expatriates who gather in expatriate’s clubs or other social places.

It can become a problem for the expatriate and the international assignment if the expatriate does not move on from the expatriate club or make any effort to integrate him/herself to the host culture after the initial transition period is over (Black & Gregersen, 2001; Hayes, 1996). Tuner (n.d. cited in Moss 2000), a psychiatrist notes the existence of “fairly sad expatriates who tend to remain within ghettos of expatriates, and never get or never give themselves a chance to mingle with the locals, whom they in turn may call unfriendly.” This becomes a problem for the international assignment. Expatriate clubs reinforces ethnocentric and stereotypical views the expatriate may have about locals. The expatriate club reinforces the notion of ‘us and them’ (Caudron 1991; Hailey 1996; Melles, 2000). The expatriate makes no effort to understand the local culture and customs which may undermine the business relationships. That is, expatriates may enforce his/her cultural values in the host country which may have conflicting cultural values (Black & Gregersen, 1999). This may result in friction between the expatriate and the locals, and ultimately lead to the failure of the international assignment (Hayes, 1996).

This presents a few insights for the Australian expatriate going over to China. Culture shock should be expected during the early phase of the transition. There will be cultural customs and traditions that will be strange to the expatriate. Moreover, the expatriate may become the subject of racial stereotypes (Crookes & Thomas, 1998). The expatriate may seek out other expatriates that are from similar cultures to that of the Australian culture. This will provide a sense of security and belongingness to the expatriate. It is important to be aware that although other expatriates may provide a supportive network initially, the Australian expatriate need to also seek out relationships with Chinese locals. Expatriates make the common mistake of staying within expatriate clubs or ghettos (Hayes 1996). Staying in these clubs will not help the expatriate to form successful business relations. Clubs may enforce the local stereotypes and the expatriate discontentment with the locals. Seeking out relationships with the local community will provide insights into the customs and traditions that the expatriate earlier did not understand. These new insights can help the expatriate to form relationships with colleagues and clients and secure the international assignment (Hayes 1996; O’Grady, 2001).

4.1. The Chinese Management Style

The Chinese have a very different way of conducting business to that of the Australians (Tan, 2002). It is important to be sensitive to these differences so that one does not offend a colleague or client and allow business relationships to transpire smoothly (Melles, 2002).

There are a many Chinese behaviours that are different to that of the Australians. Australians would do well to keep in mind that these differences often result from the Chinese teachings of Confucianism. Confucianism is the “desire to maintain a harmonious atmosphere in society, stabilize society (or organisation) by keeping order of ‘loyal-protection’ in human relationships” (Yamaguchi 1999, p. 38). The primary teachings focus on social relations, proper conduct, and social harmony. Superiority is also emphasized; the obedience and loyalty of the inferior to the superior and the benevolence of the superior to the inferior. Such beliefs are deeply held by Chinese locals and would have implications of how they would conduct business and perform in organisations (Rodrigues, 1997). Outlined below are some general examples that expatriates should take notice of when in China.

Confucianism is particularly evident in the Chinese managerial style. It focuses on highly centralised decision making, paternalistic leadership styles, and a strong emphasise in collectivism and group behaviour. Respect for seniority is also very important. Seniority based promotions emphasises collectivism and loyalty to the company (Barclay, 2001; Yamaguchi, 1999). Senior persons are also given the quality of the ‘old and wise owl’. Their opinions are considered not just a source of information, but the source of information (O’Keefe & O’Keefe, 1997). Australians who do not understand the principle of harmony may develop negative perceptions of their Chinese counterparts. They may view Chinese co-workers as being over dependent on authority figures and unable to behave as individuals. They may interpret such behaviours as excessive preoccupation with bureaucracy and hierarchy. In many cases also, Australian expatriates may be frustrated when they have realised that they themselves are seen as the ultimate authority on a particular issue (O’Keefe & O’Keefe, 1997).

Australians would usually treat authority figures as knowledgeable but fallible individuals. They view themselves as balancing respect for authority and age, with the responsibility to make competency-based contributions. The Chinese on the other hand, view them as rude and impolite, lacking respect for authority (O’Keefe & O’Keefe, 1997). Such two conflicting views will undoubtedly cause difficulties for the ignorant expatriate.

Group harmony is evident in the work ethic of Chinese organisations. As a rule, the Chinese avoid taking initiative in the daily operations of joint ventures. It is better to maintain the status quod. They view themselves as maintaining harmony and peace (Barclay, 2001; Sheer & Chen, 2003; Xing, 1995). Australians may see them as being inattentive and avoiding responsibility. Australians tend to take the initiative, especially in cases where future problems can be avoided. They see themselves as being proactive; the Chinese view them as arrogant and egotistical, which shows disrespect for the group (O’Keefe & O’Keefe, 1997). Again, such two different opposite views will undoubtedly create friction, especially when one party expects the other party to demonstrate the same behaviour.

Personal relations in China are very important. Chinese prefer to do business with those who are on friendly terms with them; they deem it as a good precondition for good business relations (Gelb 2003; Hailey, 1996; Melles, 2002). They value trust more so than control in any joint venture (Chung 1991). Due to this and the emphasis on paternalistic and hierarchy, nepotism will usually result (Sheh, 2001; Wright, Szeto & Gregory, 2000). Such a practice is usually frowned upon in Australian enterprises, favouritism is deemed as not only discriminatory but also result in weak structures and organisational mistrust. In Chinese organisations however, favouritism or promotion based on seniority is one way in which to secure company loyalty and retain talented individuals. The practice undoubtedly works in a culture that supports collectivist ideals. Nepotism may be frowned upon in Western culture and fail because of its individualistic nature (O’Keefe & O’Keefe, 1997). It is important to recognise that China and Australia are made up of different values and attitudes (Hayes, 1996). Enforcing one’s values and attitudes in a different cultural context may not be appropriate and can result in friction in the expatriate’s relationship with local colleagues.

Another serious matter in China is the protection of one’s “face”. Hurting the self-esteem of the Chinese counterpart has a serious impact on the future of the working relationship (Barclay 2001; O’Keefe & O’Keefe, 1997; Sheh 2001). One western manager said the failure of his joint venture was mainly caused by a lack of communication as a result of internal mistrust. The project’s western manager had hurt his Chinese deputy general manager’s feelings by requiring him to get prior approval before taking the company car. After that, the relationship began to break down, with people split into camps and constantly infighting (Sagiadellis & D’Netto, 1997). Face or reputation is an important concept to understand when working in China (Xing, 1995).

Australian concept of “face” is almost non existent. There is no Western equivalent for face (Chung 1991). Although the concept is non-existent in Australia, it is an important cultural nuance that needs to be recognised for successful business relationships in China.

It is important to recognise the different ways in which different culture do business so that the expatriate can adopt the appropriate behaviour in relating to colleagues to make the international assignment successful (Atkins, 1993; Black & Gregersen, 1999; Chung, 1991; Hayes, 1996; Moss, 2000). Expatriates should be introduced to cultural differences before the start of the international assignment. They and the organisation can then plan how to engage in the cultural differences to make the assignment successful (Caudron 1991; Odenwald, 1993; O’Grady, 2001; Rodrigues, 1997).

5.1. Language

For expatriates, language differences can become a problem during business transactions, where it is important to have clear communication (Dolainski, 1997). Chinese language is very difficult to learn. Often the expatriate would be provided with an interpreter. However, in a high context culture like that of the Chinese, an interpreter may inhibit the international assignment (Dolainski, 1997). There is basically a relationship triangle. That is, the expatriate asks a question, the interpreter interprets the question to the local client or colleague, he/she may then speak to the interpreter for a certain length of time, outlining the issues he/her faces with the expatriate’s question. The interpreter however answers back to the expatriate with a couple of words or sentences (Dolainski, 1997). Information that may be important is lost in the translation that may compromise the assignment. Moreover, as Chinese business relationships are build upon trust, the expatriate who can not speak Chinese will find it very difficult to demonstrate his/her credibility to local colleagues and/or clients. If the expatriate’s credibility can not be demonstrated, the Chinese locals may never let him/her to become part of the group. It reinforces the ‘us and them’ concept, which can compromise a joint venture that depends on trust and good faith (Mead, 1990).

Language also becomes important outside of the business relationships. Expatriates have to deal with other people apart from business associates, for example Chinese vendors in supermarket. If he/she is not able to speak the language to certain proficiency he/she will not be able to integrate him/herself into the community (Gelb 2003; Mead, 1990). Integration may be important to international success. The expatriate’s happiness in the host country and his/her acceptance of the country’s cultures and customs may determine how willing he/she is to stay until the completion of the international assignment (Hailey 1996). Miller, is a female expatriate with extensive experience in international assignments, she has worked in Turkey, Amsterdam, Zurich, Dusseldorf and Seoul. Miller started taking formal language classes until nine months into her assignment. She says that learning the semantics of the language gave her important clues about the culture. For example, the Mandarin word for ‘question’ is the same word for ‘problem’. Knowing this helped her better to understand that people who asks too many questions, or are too challenging, are viewed negatively. From this, she learnt lessons on Chinese harmony and respect for authority. Moreover, her naïveté of Chinese culture induced her to seek social functions and language schools, the accidental forays gained her a higher degree of popularity among her colleagues. Learning the language may become a useful too in overcoming cultural shock and isolation (Gelb 2003; Mead, 1990; Odenwald, 1993). It can also boost the expatriate’s knowledge of the culture allowing him/her to better function in the international assignment.

Learning a language may help expatriates to see things from a foreign lens (Webb, 2003). Odenwald (1993) argues that language training should be included in the HRM and development and training from the initial stages. Language training is necessary on top of cross cultural training. Support for language is needed both before and during the assignment (Phillips, 1993). Kreicker (n.d. cited in Caudron 1991) believes that language is a critical element in any cross cultural training programme. It can provide insights into the country’s culture. For example, there is no word for privacy in Chinese. This may reflect the collectivist nature of the culture and other cultural variables that foreigners may not be aware of but are important to note (Adler, 1995). Says Kreicker (cited in Caudron, 1991, p. 30), “When you go that extra mile and study language, it indicates you truly want to understand the culture.”

6.1. Women expatriate in China

Companies are often reluctant to send female expatriates. Companies often express concerns about the woman’s safety, isolation and the loneliness (Halcrow 1999). Companies also hesitate to send women abroad because they felt that foreigners would be prejudice against women and those female mangers could not succeed even if sent (Adler, 1995; Dispelling Two Myths About Female Expatriates, n.d.; Hodge, 1999; Meckman, 2002). Companies build these assumptions on two myths: 1) what they read or hear about how local women are treated in the workplace, and 2) how women in general are treated by male colleagues in the home country workplaces (Cook, 2000; Grove & Hallowell, 1997).

However, women can and do function successfully in cross-border managerial success (Grove & Halowell, 1997). In a company survey of expatriate success, almost all of the expatriate managers (97%) reported that their international assignments were successful. The success rate was considerably higher than that reported for their North American male counterparts (Adler, 1995). Women and men differ in their abilities and therefore are capable of making different but equally valuable contributions to the organisation. Women should be considered for expatriate assignment as they possess a diversity of skills that can add to the venture (Aptheker, 1989; McGee Calvert & Ramsey, 1992).

When applying the concept of female leaders in China, a very hierarchical and patriarchal society (Sheh, 2001), one would expect that female managers would face a lot of problems compared to male managers. Fortunately however, this appears to be entirely the opposite. Most countries do not hold the foreign woman to the same professionally limiting roles that restrict local women (Adler, 1987). The women in the above study reported numerous advantages to being female, most frequently, the advantage of being highly visible (Adler, 1995; Grove & Hallowell 1997). Foreign clients were curious about them, wanted to meet them and remember them after the first encounter. Therefore women found it easier than their male colleagues to gain access to foreign clients’ time and attention.

Female managers also have found a number of advantages based on their interpersonal skills (Adler, 1995). In a country like china where personal relationships are highly valued, a sound interpersonal skill can be an advantage. Many women “naturally possess characteristics that make it easier for them to succeed in a vastly different culture and bridge the cultural differences” (Cook, 1987, p. 87). Female expatriate may be more successful in a country that values softer skills. The women also described the high social status accorded local women; they would often get special treatment that their male parts did not receive, simply because of the host culture’s treatment of women in general. One woman in Grove and Hallowell’s (1997, cited in http://www.bcsolutionsmag.com/Archives/Nov1997/women.html) interview regarding woman in the workplace reflected: “I feel more respected as a manager in China than I do in the United States. The Chinese value two qualities in their leaders: competence and ren: [warm-heartedness, benevolence, and readiness to care for others]. If a leader is ren, he or she will receive subordinates’ loyalty in turn. Adopting ren behaviour is more common by American female assignees than by American males. In the United States, we women have fought against being “caretakers.” But overseas, I’ve seen this aspect of a woman’s socialization work in her favour time and time again. It helps us understand what’s going on around us.” Expatriate women have many things to contribute to the success of the international assignment. Companies would do well to utilise the diverse skills women possess to the international venture.

Companies should take not that foreigners are seen as foreigners. Like male colleagues, women expatriates are seen as foreigners and not local women (Adler, 1987; Adler, 1995; Cakvert & Aptheker, 1989). A women who is a foreigner is not expected to look and act like local women. Therefore societal and cultural values governing the behaviour of local women that limit their access to managerial positions and responsibilities do not apply to foreign women. Grove and Hallowell (1997) found that how local males treat their female co-workers is not a sound basis on which to predict how they will treat expatriate females. Therefore companies need to rethink the myth that women expatriates might be treated with more disfavours than their male counterparts, it is just not reality.

While there are many advantages to being a female expatriate, there are also many disadvantages. One of the main disadvantages relate to the woman’s relationship with her home company, not with foreign colleagues and clients (Hodge 1999). Companies often do not trust the woman to succeed and will often limit her responsibility of length of assignment. This creates a self-fulfilling prophecy (Adler 1995; Dispelling Two Myths About Female Expatriates, n.d.). When the home company is not convincing that a woman can succeed then it communicates the company’s lack of confidence to foreign clients and colleagues. The host company then mirrors the home company’s behaviour by also failing to take the woman manager seriously (Adler, 1995; Grove & Hallowell, 1997). Assignments can become difficult and even fail when companies demonstrate a lack of initial confidence with the woman expatriate. Organisations must fully support the woman expatriate without hesitation, like they would for a male expatriate. This will promote the likelihood of her success. How organisations can do this is further discussed below.

Although Chinese locals may be attracted to new expatriate female, Chinese organisations is still very much a patriarchal system. In both Adler’s (1995), and Grove and Hallowell (1997) research, women noted how difficult initial meetings can be. Managing foreign clients’ expectation and colleagues’ initial reactions is one area that may prove difficult for women. When a male colleague from the female’s expatriate home country is present, questions and comments may be directed more to him than her regardless of her more senior position. Chinese locals would naturally assume the new woman was not the manager. One respondent commented, “I speak Chinese which is a plus. But they’d talk to the men, not to me. They’d assume that I, as a woman, had no authority. The Chinese want to deal with top, top, top-level people, and there is always a man at a higher level” (Adler, 1995, p. 269).

In such a situation, senior male colleagues from the head office, and the head office itself, will play an important role in redirecting the focus of initial discussions back to the woman (Hodge, 1999). This will build the foundation for future relationships. However, after this first hurdle is accomplished, the literature argues that women expatriates will be successful in the assignment by using many diverse skills, for example interpersonal skills which is highly valued in business and personal relations in China (Adler, 1995; Grove & Hallowell, 1997).

It is unfortunate, but sexual harassment can occur in global business situations as well as domestic situations. Sexual discrimination is a little-discussed problem in cross cultural relationship, and therefore expatriates may not be trained to recognise harassment (Hardman & Heidelberg, 1996). As mentioned above there are a variation of appropriate and inappropriate behaviours that are relative of culture. A behaviour that is accepted in one culture may be unacceptable in another (Hayes, 1996). What an expatriate may construe as sexually provocative or offensive may not be shared by the host culture. Some behaviour that deeply violates the expatriates’ norms may not be perceived as a problem in another cultural context (Hardman & Heidelberg, 1996; Hodge 1999). It may become difficult then for the expatriate (even those who possess cultural empathy) to differentiate a cultural nuance from harassment. Thus it becomes important to train expatriates about cultural differences before international assignments.

Cross cultural training may be a proactive measure that helps to diminish cultural misunderstandings between men and women, but it may be inadequate and limited (Adler, 1995; Aptheker, 1989; Grove & Hallowell, 1997; Halcrow, 1999). Specific information regarding sexual harassment and sexual discrimination in the host country, as well as sexual harassment training may be more useful (Hodge, 1999). That is, what is considered as sexual harassment in the host country and procedures and policies in which to follow when harassment does occur?

Sexual harassment however should not be taken lightly and it is always not just a “cultural misunderstanding” (Hardman & Heidelberg, 1996). Women may encounter difficulties in countries that are very paternalistic, like China. As seen above, it is still not the norm to interact with a woman in a professional capacity. Barriers may exist that effect the ability of females to be fully integrated to the project team (Adler, 1995). Men may take advantage of women. The question then becomes, if sexual discrimination, including sexual harassment, is the norm in some cultures, should it be ignored when it occurs (Hardma