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A development of solutions to the problems experienced by expatriates in multinational corporations

The objective of this study is to investigate the reasons for international assignments ending in failure, using the current models of expatriates’ premature withdrawal decisions, so as develop solutions to those problems. Studies of expatriate failure and effects of expatriate satisfaction on organisational performance have been conducted but most of them in the overseas countries. These studies revealed that the practice of employing expatriates is a strategic move on the part of the multinational corporation to increase the international experience and knowledge base of present and future managers. Even though studies on strategies that companies can use have been done extensively, research still shows that a large number of overseas assignments end in failure. Failure being described as the premature return to the home country, not being able to adjust in the host company or country and immediately living the company upon return from the assignment. It is for this reason that in the researcher decided to investigate what could be the reasons that cause the expatriates to return home early. The research will be of importance to South Africa firstly, as organisations that are operating globally will copy the business systems and processes practiced in developed countries, and later bring knowledge, skills and expertise that will help in boosting the economy of the country. Secondly, the organisation's Human Resource Management will develop practices to ensure the successful and effective retention of expertise. Expatriate failure will be reduced and the process of repatriating expatriates will be meaningful. Individuals assigned will not find it difficult to adjust in the parent company, and later take the skills they have learnt to another company. Thirdly, managers generally will understand the challenges that accompany expatriation, and be able to meet those challenges. The research becomes an investigative research as one tries to establish if there is concurrence or deviation with the current models. A sample is drawn from a list of international companies that have operations overseas. The researcher has tried to get responses from companies in all provinces of South Africa so that the sample can be fully representative. The questionnaire is used as it is a common instrument for observing data beyond the physical reach of the researcher. The questions were selected to address each of the factors affecting decisions to withdraw from the country of assignment. Responses from the expatriates have helped to develop a new model that encompasses all the factors that cause the expatriates to leave the assignment early as well to develop solutions to the problems. This will not only help the multinational corporations to save on costs, but will also ensure that the company and the expatriate benefit from international assignment.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8548
Date January 2005
CreatorsFaas, Pamella Misiwe
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MBA
Formatxi, 135 leaves, pdf
RightsNelson Mandela Metropolitan University

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