Part A: Literature Review

Abstract
Economic liberalization triggers many local and international organizations to expand their business along with establishing their reputation globally. As to expand internationally, expatriation process is necessary for a company to establish themselves successfully internationally. One of the biggest challenges that companies are facing nowadays is the poor selection and development of expatriates. This paper is intended to discuss on those expatriation issues and the recommendations for the company to overcome those issues. In the first part of this paper, the literature review of the expatriation is discussed and the second part will be covered on the recommendations that are derived from the limitations that were identified from the literature review in part one.

1.1 Expatriation
Due to the increasing business activities in today’s world, it is just not enough for a company to be successful in the national market only. Due to globalization, there have been many international investments and mergers and acquisitions. This globalization requires the companies to reflect on new measurements or estimations to stay focused and remain competitive in the global market such as the importance of knowledge transfer and international management development. This means the expatriation and expatriates have become a formula for every international management and companies that are looking forward to achieve their success in the global market (Nikolaeva, 2010).
Expatriation is “the process of sending managers to another country to run a subsidiary of a multinational organization. Before departure, the process should include an extensive period of training and preparation to ensure that the managers are familiar with cultural differences, and to reduce the likelihood of culture shock” (Dictionary of Human Resource Management, 2001, p. 120). There are three stages of the expatriation: (a) Pre-departure stage, (b) Expatriate stay and (c) Repatriation. These three stages are interconnected to one another and each stage should be successfully reached in order to complete and attain a successful international assignment (Figure 1).

Figure 1 shows the life cycle of ideal expatriation
Expatriate assignments may facilitate fundamental parent company’s communication and coordination while forming relationships with other nations by transferring overall corporate philosophies and the company vision along with the expatriate which will help in enhancing the competitive position of the company (Boyacigiller, 1991; Rosenzweig, 1994). Besides that, expatriation is a tool for an organization to gather and maintain a base of a knowledge, which turns out as a measurement the complexities of international management. This knowledge helps to build a competitive advantage by providing a sensitive feel to the companies on the international opportunities (Lee, 2006).

1.2 Expatriation Failure
Although these are the major concerns of the expatriation, still the expatriate failure – where the company has to deal with the an expatriate’s premature return from an international assignment. The premature return has been in a critical position in the literature of expatriate management. In the current literature of expatriate management, the term of “expatriate failure” been linked with a broad range of themes such as premature return, low performance, adjustment problems, etc. (Harzing & Christensen, 2004). This expatriation failure can happen at any three stages of expatriation as each stage has its own, possible drawbacks that lead to a failure of the expatriation.
The use of expatriates is extremely costly to firms. It is believed that it will cost up to US$1 million for a company to send the workers and their families for 3 years abroad (Harzing & Christensen, 2004). Not only the cost involved with the expatriates is costly, but a failure also affects the company in terms of business opportunities that have been lost and bad reputation resulting in a substantive cost, including direct and indirect cost (Storti, 2001). Direct costs include the expatriate salary, foreign service allowances, and benefits which are calculable whereas, indirect costs are invisible, jeopardizing the market shares, and damaging business relations. Expatriate failure also will cause negative effects on the individuals where the loss of self-confidence in the expatriate which will also affect the later career development too. Sometimes the expatriate’s family also may suffer unanticipated emotional damage (Dowling et al., 1994).

1.3 First Stage of Expatriation: Pre-Departure
This phase is crucial to the rest of expatriate process. It is important for an organization to identify the right people are sent as expatriates for the suitable reasons and foreign assignments (Black & Greyersen, 1999). The success of this first will determine the success of the next two following phases. Pre-departure phase encompasses the activities and other concerns in the period before leaving the home country. These concerns additionally incorporates the motivation of the employees for accepting the foreign assignment, selection process, and training.

1.3.1 Expatriates’ Motivation
Motivation is the very foundation for inspiring people to give their best, whether on a personal level or on a professional level (Addler, 2008). Motivation at a professional level serves as a gear to the employee’s encouragement in performing well and attain high productivity and also job satisfaction (Addler, 2008). This motivational theory is the focus of the research question in the three expatriate phases. At the professional level, focus on how expatriates are motivated to take foreign assignments and how they maintain their inspired motivation throughout the expatriation and after returning home. However, these levels are twisted together and affect each other. Emotional instability spill arises from the influence of personal behaviour over the professional behaviour.

1.3.2 Recruitment and Selection
In the pre-departure stage, recruiting a suitable employee is the major challenges for the managers as they need to consider some main factors in the recruitment process. Unfortunately, it seems that managers nowadays are underestimating the recruitment factors. The ignorance and lack of attention when selecting the employees for the international assignment leads to a failure in the expatriation (Dickmann et al., 2008). Many organisations still use of one-sided selection criteria for a candidate and do not pay sufficient attention to cross-cultural knowledge and the importance of the family of the expatriate (McDonald, 1993).
An early study found out that insufficient technical competence was only ranked on the sixth place as the contributors of expatriate failure. This skill generally prevents failure in the beginning of the foreign assignments and this is the reason why companies focus on that particular skill to be on the safe side (Tung, 1987). Though, companies should recognise and choose on the employees that possess skills such as being sensitive to different cultures, tolerance for ambiguity, sense of empathy, being non-ethnocentric and non-judgemental (Yavas & Bodur, 1999). Those characteristics help the expatriates to work with people from different cultures with different social values and behavioural patterns (Ashamalla, 1998).

1.4 Second Stage of Expatriation: Expatriate stay in the host country
The post-arrival stage of expatriates’ is clearly influenced by the cross-cultural challenges and adjustments of the expatriates facing in the host country. In this stage, the expatriates will undergo changes in the culture and norms of foreign country and in order to be successful in a foreign assignment, the expatriates and their families need to adjust themselves to the culture and people in the host country. The U-Curve Theory (UCT) of adjustment which includes the four stages of adjustment - Oberg (1960) that describes expatriate adaptation as a four-phase process.

1.4.1 U-Curve Theory – Oberg’s four phases of adaptation
Earlier research on expatriate adjustment were focused mainly on cross-cultural adjustment issues where the scholars relied based on the U-Curve Theory (UCT) of adjustment. Adjusting to a culture in closer proximity to one’s own helps facilitates the learning and reduce psychological stress arising from the uncertainty of the new learning situation (Black et al., 1991). Besides that, learning also will be facilitated if a neophyte in a new environment is guided by an experienced person despite the cultural proximity (Mendenhall & Oddou, 1985).
UCT includes the debate of four stages of adjustment (Figure 2). It is also a model developed by Oberg (1960) that describes expatriate adaptation as a four-phase process. The first stage is called as honeymoon stage and it occurs during the first week after the arrival of the expatriate in the host country. In the honeymoon stage, individuals usually attracted to the new culture and the difference in the particular culture (Marx, 1999). They feel more like tourists than expatriates (Pedersan, 1991). Once the newcomers start to cope with and embrace the real condition of the host country’s culture in daily basis, the second stage of UCT which is known as a crisis will begin. It involves the frustration and hostility of the expatriates towards the host nation and people of the nation. Expats often misunderstand the other cultures which means they cannot make sense of other’s behaviour and they do not achieve the desired results. They will face difficulties in meeting demands of the new environment, yet, nor the skills to produce culturally adequate responses (Adler, 2008).The third stage is the adjustment stage, which deals with the adaptability of the individual to new norms and values of the host country and their behaviour became more appropriate than they were before. Finally, the last stage, known as a mastery stage where the individuals will be more comfortable and effective in functioning the new culture.

Figure 2. The U-curve of cross-cultural adjustment

From the figure, it can be seen that the initial time in a new culture plots a high point which arises from the excitement of the expatriates stepping into a new culture. However, as time progresses, they begin to feel the tension in adjusting, which leads to depression and physical ills. But this situation changes as they reach a higher point once they have situated themselves in a new culture by learning to cope and work in a new environment as well as be able to interpret and resolve the communication breakdown. Although this point is not higher compared to the excitement that they felt at the start, it still reflects a more liberal attitude that is sustainable in the long-run (Gammel, 1998).
The degree of adjustment is measured in terms of variables such as comfort and the level of satisfaction with the new environment and people of the host nation. The attitudes and difficulties with the aspects of new environment also taken into account and it is measured by the degree of acceptance of the host country’s culture (Torbiorn, 1982; Black & Mendenhall, 1990).
The adjustment is indicating a gradual increase in the degree of satisfaction in being able to cope. This mark of increment arises from the effectiveness of the expatriates knowledge on how to function productively within the host country. Familiarity and adaptability with the host country will help the expatriates to achieve more realistic expectations of a particular culture and people (Usunlier, 1998).

1.5 Third Stage of Expatriation: Repatriation
Repatriation is the final link in the circular expatriate process and it is a necessity to complete this stage as it is the end point of the expatriation cycle that binds the individual expatriate cycles together (Paid, Segaud & Malinowski, 2002). Repatriation defined as the process of re-entry of individuals’ home country after living abroad for a significant period of time (Hurn, 1999). After back from a foreign assignment, the repatriates have to adjust themselves to the home country and start to communicate again with their friends and colleagues.
The problem of repatriation is twofold: readjustment and re‐establishment. “Returning home means ‘getting back to normal; and friends, relatives and colleagues are often not really interested in the expatriate’s experiences” (Murray, 2007). While most expatriates and managers assume that adapting into one’s own culture is easy, but in reality, many expatriates facing difficulties in adjusting to their home country (Adler, 1981). According to Adler (2007), the returning expatriates tend to experience a reverse culture shock and the degree of culture shock is higher than when meeting the host culture. This is due to the high level of excitement of the returning expatriates. Shortly after their arrival at home, it seems everything to be perfect, but is rather a short period and followed by a period when nothing is the same as before (Adler, 2007). The repatriates feel neither overexcited nor anxious, they feel “average” (Adler, 2007, p. 288) and this kind of situation leads to the resignation of the repatriate more often. There are three main causes for repatriation failure and resignation of the employees: a) Repatriates expectation: Deals with the difficult adaptation process which influences the expatriates’ expectations and the company’s perception on the international assignment. The repatriates returning home will have some common expectations. They will expect everything will be the same as when they left therefore they do not need professional help with repatriation. They also expect that their organization will value their new skills and experiences which will guarantee their promotion. If their expectations are met, it will boost the employees’ effectiveness and job commitment.

b) Work-related changes: This involves the decrement in the chance of fulfilling the manager’s part of the psychological contract (Stroh et al., 1998) due to the changes during the expatriates stay abroad. The best way to deal with these changes will be the constant communication between the expatriates and the home country (Allen & Alvarez, 1998).

c) Socio-cultural changes: The expatriates and their families will have to deal not only with the working environmental changes during the international assignment, but also they have to deal with the changes in the society (Lee & Liu, 2006).

Part B: Recommendations on Expatriation

2. Company Background
Packnada is a local company in Singapore that offers a "wardrobe away-from-home" service, where instead of lugging clothes overseas in your suitcase, you can leave them with the company which will make sure they are delivered to your hotel room, freshly laundered and ready to wear. Founded by Johnbosco Ng and Jonathan Lee, Packnada started with S$50,000 in funding from SPRING Singapore. Packnada works by dropping off bags with the personal items at the hotel concierge, ready for the user to pick up upon check-in/out. Bags are tagged to the guest name and room number, similar to leaving your luggage after checking out during a holiday. Personal items are washed and stored in Singapore by Packnada (Doh, 2014).
After operating successfully in Singapore, now it is the best time for Packnada to expand internationally and as a first step to it, Packnada wish to expand its service to Asia due to the expansion of growth figures compared to the western and European counterparts. Packnada wish to expand its service to Thailand. One of the main reasons for choosing Thailand as the next expansion of Packnada is because Thailand is considered as one of the Asean country with a high rate of tourism development (Mazumder et al., 2013).
When planning to expand internationally, one of the biggest concerns for Packnada is the expatriation process. Packnada have to send expatriates from Singapore to Thailand in order to facilitate the business set-up and services back at the host country (Thailand). Although expatriation is a norm for the businesses that expanding internationally, there are still some criticisms and restrictions that are associated with the expatriation and the expatriates.
This second part will be covered on the recommendations that are derived from the limitations that were identified from the literature review in part one.

2.1 Pre-departure recommendations: Recruitment and selection
Recruitments and selections are the key for success to the international assignments before the organizations start the expatriation. Selecting the suitable expatriate for a particular foreign assignment plays a major role in the expatriation success. A suitable expatriate is who can be able to adjust his/herself when staying in the host country. Cultural adjustment is an important integration of expatriation and it is known that this adjustment is a crucial element of an expatriate to successfully complete the expatriation cycle. This process is called as cross-cultural acculturation. It is recommended for every organization to adapt this cross-cultural acculturation in selecting and recruiting the best expatriate for a foreign assignment.

2.1.1 Cross-cultural Acculturation
Many human resource management believes that the dimensions of cross-cultural acculturation are well known and good enough to revise selection and recruitments or training programs (Baker & Ivancevich, 1971). The key factors of the expatriates acculturation process help the personnel directors to design the (a) selection instruments of expatriates acculturation and (b) acculturation training programs identify the important factors of acculturation and train the expatriate according to the important factors that were identified (Mendenhall & Oddou, 1985).
There are four dimensions related to a successful expatriate selection based on the cross-cultural acculturation that were reviewed from empirical studies that directly investigated the overseas adjustment of expatriate managers. There are: a) Self-orientation: Refers to the ability or attributes of a person that helps to strengthen his/her self-esteem. The organization will propose the expatriate who can find substitute for the interests and activities in the new culture while effectively deal with stress and adjust quickly to the new foreign environment. b) Others-orientation: The expatriate’s ability to develop and maintain relationships with host nations. The organization will prefer a person who can develop mentorship ties with host nations. c) Perceptual skills: Expatriates being no-evaluative and non-judgemental. The organization will propose an expatriate who can adjust more quickly and willing to update their values to fit with foreign culture. d) Cultural toughness: Involves the living standard differences between the home and host country. The degree of low differences helps to fasten the expatriates’ adjustment process.
From this four-dimensional model of expatriate selection of cross-cultural acculturation, it has provided a conclusion for the expatriation researchers with a strong theoretical grounding on the influences of the expatriate adjustment process. Expatriates with high attributes on the stated orientations tend to be more successful in the adjustment process.

Besides that, the organization also must realise the importance of the expatriate spouse’s attitude during the assignment as it is one of the major influence on the success of the expatriates’ success and this attribute must be considered during the recruitment and selection process (Murray, 2007). Spouses that are in favour of the international assignment will have a higher adjustable rate to the general environment. They also will find it easy for them to interact with the host nationals’ (Black & Stephens, 1989). The adjustment of the expatriate’s spouse and family will motivate the expatriates’ success thus, it is recommended for an organization to provide a brief pre-departure training before their arrival in the host country. The training should consist some basic information on the host country’s cultural behaviour and norms so that it will be easy for them to manage themselves upon their arrival at there.

2.1.2 Cross-cultural Training
Pre-departure training carries an outright importance of a successful expatriation. An organization should be carrying out the effective pre-departure training that integrates with the purpose of the foreign assignment and the culture of the host country so that it will be easier for the expatriate to understand deeply on the expatriation. One of an effective pre-departure training will be the cross-cultural training (CCT). Increased globalization has raised the movement of human capital, making efficient CCT important for multinational corporations. The significance of cross-cultural training has been covered in many theoretical studies and the importance of the cultural adjustment process was justified (Black & Mendenhall, 1990; Tung, 1981). Although this justification become the debate for some authors, most of the researchers agree on the positive impacts of cross-cultural training.
The purpose of offering CCT before departure to the host country helps in improving the cultural adjustment of expatriates and the family while teaching them to act appropriately in the new culture. One of the main objectives of CCT is to enhance the business performance (Waxin & Panaccio 2005, p. 54; Littrell et al., 2006, p. 368; Ferraro, 2010, p. 183). The expatriates with training tend to have a high level of cultural intelligence which affects especially the general interaction adjustment to the new culture. Expatriates also can easily establish good relationship while respecting the local colleagues and business partners (Brislin & Yoshida, 1994, p. 4).
In this cross-cultural training, companies will teach the expatriates cross-cultural skills using different methods to facilitate interactions with foreign culture. A summary of different training methods along with their attributes has been compiled and presented in Table 1 (Appendix 5.1).
The CCT training is strongly influenced by expatriates’ nature and character, the complexity level of task assignment and cultural distance (Lee & Croker, 2006, p. 1187). Other factors to consider also will be the context, the length and methods used in the training. This is the challenge for international human resource managers, “They have to judge if the kind of training that they offer is efficient and useful enough; and they might have to explain the expatriates its aims to reach more acceptance” (Nikolaeva, 2010).
According to Ferrario (1998, p. 258) “pre-departure CCT can put the trainees through a series of cross-cultural simulations which can serve as the beginning phase of internationalizing the desired skills. Moreover, one of the benefits of CCT is that it makes explicit the competencies and skills that an individual should be working on in the overseas assignment in order to maximize success in that assignment. Sometimes the very awareness that they should be working on these carry-over skills will ensure that they will be internationalized to a greater degree than if there were no such awareness.” Different angles can be considered in outlining and handling an effective expatriate pre-departure CCT. Some approach to assure the effectiveness of expatriate pre-departure CCT are included in Table 2 (Appendix 5.2). The companies must also recognize the importance of introducing CCT in all culturally different communication in international business (Pessala, 2012).
Gary Ferraro (1998, p. 150) argues that by providing changes to the host culture, CTT enhance job performance, minimize the number of incorrect acknowledgement of behaviour, increases understanding of one’s own culture, reduces stereotypical thinking, helps in intercultural coherence in team, minimize the social doubts that lead to more fully accomplishing one’s professional objectives.

2.2 Post-arrival recommendations
Besides the pre-departure trainings and support programs, the organization also should not neglect the support for the expatriates after their arrival at the host country. The organization should provide ongoing post-arrival support to the expatriates and their family. Settling-in-assistance is valuable for both the expatriates and their family. An orientation to the city and a basic introduction to the daily living conditions are extremely important in overcoming the chaos of international relocation.
It is known that the parent company is the initial source of support by providing benefits to the expatriates prior to their arrival in the host country. As to support the expatriates relocation, the organization should provide the expatriates with enough financial support to one’s standard of living were more adjusted to working in the foreign country (Kraimer et al., 2001).
Besides the financial support, the organization also should provide expatriate mentoring or support groups to the expatriates. Once in the country, there should be some activities take place in order to promote the expatriates relationship. For example, through company-organized “meet & greet” events, as it helps the newcomer build a supportive social network. Through this mentoring support, it is also believable that the expatriates can adjust themselves to their working environment in a fast pace.
As for the spouse and family of the expatriates, the organization should acknowledge them for the sacrifices they made in support of the expatriate employee. The organization can do its part to enable a promising result by addressing the spouse’s need for emotional support during the assignment. In helping the accompanying spouse, the sponsoring organization can gain the benefits of a happy and adjusted family and a more effective expatriate employee (Foley, 2012).

2.3 Repatriation recommendation
As for overcoming the repatriation problem, the companies should plan for the re-entry even before sending employees on a foreign assignment (Andreason & Kinneer, 2004). An effective pre-departure program will be effective not only in the selection process, but also give the expatriates advice on what sort of problems to expect both in their host country and when returning. The repatriates need to be more proactive in their commitments towards this program as they and their families will be exposed to good ideas on what to be expected once they are returned to home country (Murray, 2007).
There should be also a post repatriation support for the repatriate who returning to home country after completing the foreign assignment. This program will prevent the repatriates from resigning from their job at home country and aware of the changes that have occurred in their company and their home country since they have been gone. Relocation, financial crisis, stress and re-entry into the home organization are a part of the repatriation process and having a support in the repatriation rearrangement will ensure a smooth process upon re-entry (Murray, 2007). An effective repatriation program should consist of: * Assistance about the employee’s; * Financial and tax assistance to manage the money without any loss of earnings or tax incentives; * Information on possible changes in corporate culture; * Stress management; * Establish a networking opportunity.

3. Conclusion
In the current era of globalization, the realization of the need of knowledge transfer to stay competitive in the global market is increasing among the companies. In order to achieve the state of global business competitiveness, the companies are sending employees to work in their foreign offices as expatriates. This expatriation process possesses many benefits and also has its own problems and limitations. The organization should overcome all the problems and limitations by providing the right plus effective solutions such as training and support programs for the expatriates and also for the expatriates spouse and family. By adopting a correct mode and methods of an effective expatriation process, it is a guarantee for an organization and the expatriates to be successful in the foreign assignments and international expansion.
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5. Appendices Didactic training | Provided in the form of informal lectures or casual conversations with experts in a particular field. It is the most common form of CCT and more that two thirds of MNC corporations offer didactic training to their expatriates before going to abroad (Brewster, 1995, p. 63). | Experiential training | Involves look-see visits to the host country apart from practical exercises, workshops and simulations (Caligiuri et al., 2001). Look-see trips provide real life experience of the host country for the expatriate and also his family by meeting people and new environment. | Attribution training | Provide skills in thinking to the expatriates while acting as a host nation. This skill aimed to give the expatriates an insight into the cultural point of view in the host country. Attribution training is closely connected, but not limited to a teaching method called “cultural assimilation” (Grove & Torbiorn, 1985). | Language training | Teaching the expatriate the native and business language of the host country. Although it is a time consuming process, there are still benefits of using this training method (Tung, 1981). Language barrier can prevent the expatriate to perform well at both personal and professional level and this training helps them to understand better the culture of the host country (Brewster, 1995, pp. 64-65). | Cultural awareness training | To educate the expatriates about the concept of cultural differences by teaching the importance of both home & host culture. Training includes self-awareness building and value ranking charts, but also can be reached with simulation games and perpetual exercises (Grove & Torbiorn, 1985). | Interaction training | Based on the interactions of the new expatriates with the senior expatriate who experienced the culture of the host country for a long period and became a part of it (Brewster, 1995, p. 64). | Cognitive Behaviour Modification | The expatriate gets to name what activities they find rewarding/punishing in the home culture context. The expatriates can apply the same process in the host country and feel positive about facing challenges of the host culture (Grove & Torbiorn, 1985). |

(Appendix 5.1): Table 1 Different training methods and their attributes

(Appendix 5.2): Table 2 Suggestions to ensure the effectiveness of expatriate pre-departure CCT (Pessala 2012)