UNIVERSITY OF BELGRADE,

FACULTY OF ORGANIZATIONAL SCIENCES

MIDDLESEX UNIVERSITY LONDON

DISSERTATION PROPOSAL

DESIGNING PRE DEPARTURE

TRAININGPROGRAMS AS MEANS OF
PREVENTING EXPATRIATE FAILURE

Mentor: Student:

Jelena Anđelković – Labrović PhD Goran Kostadinovski Full Professor

2014/4018

Belgrade
DISSERTATION PROPOSAL

Name and Surname GoranKostadinovski

Index number 2014/4018

Module Master- International Business Management

Mentor’s Name and PhD Professor Jelena Anđelković - Labrović

Surname
Title of Master Thesis Designing pre departure training programs as means of preventing
expatriate failure

This paper explores the different methods and roles of correctly designed
pre-departure training programs as means of preventing expatriate
failure. Nowadays the globalization process has created many challenges
for the MNCs. Many of the MNCs are facing the challenges of sending
expatriates to different subsidiaries in order for them to be managed
properly in the early stages. The expatriates are sensitive group that is
facing many challenges regarding the new environment and culture. In
regard to these factors many of the MNCs are facing high rate of
expatriate failure. With such high rise in expatriates there comes the
SUMMARY need for skilled IHRM to face the challenges when managing these
groups of employees. In this paper the role of the properly designed pre-
departure training programs and the importance of its proper
implementation will be explained. Also, the most common reasons for
expatriate failure through qualitative research will be defined. Based on
the results of the study and all of the relevant literature to the matter
regarded the best possible ways of preventing expatriate failure through
designing adequate pre-departure training programs will be suggested.

The aim of this paper is to understand the most common reasons for
expatriate failure. The purpose is to explain the steps that the modern
human resources team should undertake so they can find the best
possible ways of managing the international assignees and prevent the
risk of failure through designing and implementation of adequate pre-
departure training programs.

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INTRODUCTION

Designing pre-departure training programs became very important step when talking
about expatriate success. Nowadays, Multinational Companies (MNCs) are aware of the
important role International Human Resource Management (IHRM) has regarding expatriates and
their success/failure, therefore, they carefully review all the factors that may prevent expatriate
failure. Generally speaking, HRM refers to those activities undertaken by an organization to
effectively utilize its human resources (Dowling, Festing and Engle, 2013). On the other hand,
IHRM has been defined by many authors but Stahl, Bj öorkman and Morris define the field of
IHRM as follows:

We define Tthe field of IHRM is defined broadly to cover all issues related to managing
the global workforce and its contribution to firm outcomes. Hence, the our definition of IHRM
covers a wide range of human resource issues facing MNEs in different parts of their
organizations.

In this paper we will use the term Expatriatethe term “expatriate” will be used when
regarding to all international assignees. An expatriate is and employee who is working and
temporarily residing in a foreign country (Dowling, Festing and Engle, 2013)

In the first stages of opening subsidiaries abroad an expatriate must be sent to the branch
in order to insure proper implementation of company policies, practices and know-how. Engaging
local employees from the early start can be difficult, therefore home country nationals (HCNs)
must be involved in the process.

In these times, there is a high expatriate failure rate noted among MNCs. Sending an
expatriate abroad requires proper selection, preparations and pre-departure training in order to
minimize the poor performance of expatiates and therefore and avoid any direct or indirect costs.

Further on, in this paper we will try to identify the factors that affect expatriates and their
poor performance will be identified and also make a review of all the existing methods and
practices used in order to provide a critical analysis will be made to see what is the best way to
prevent expatriate failure through designing adequate pre-departure training..

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OVERVIEW OF THE COMPANY AND MARKET RESEARCH

In this paper the factors that affect expatriate success abroad will be examined. We are
going to examine the expatriates and the factors that are affecting their success abroad. It will be
seen We will see how the IHRM is coping with the demanding global environment and what are
the most common techniques used to achieve their goals. This subject is important We are
choosing this subject because, managing expatriates in a global environment is a demanding and
complex process and most of the MNEs are finding it really important because it has a notable
effect on their overall success. In these times many companies are finding it hard to avoid the
expatriate failure and the rates are still high.

The research made so far indicates that international assignees are often viewed in a
negative way by host cultures (Nicholson at al; 1990) and there is a high failure rate among
expatriates (Black, 1988; Black & Stephens, 1989; Mendenhall &Oddou, 1985, 1987, 1988,
1999; Tung, 1981, 1988; Zeira&Banai, 1985). Tung (1987) estimates that five percent of
European multinational transfers, thirty percent of U.S. multinational transfers and five percent of
Japanese multinational transfers are failures (qtd. in Martinko, M. J., Douglas S. C., Culture and
expatriate failure: An Attritional Explication).

In the Master Dissertation the existing ways of lowering down this rates will be presented.
Phases of selection and recruitment will be briefly explained and the focus will be on the design
of the pre-departure training program as means of preventing expatriate failure.

PROBLEM IDENTIFICATION

In the dissertation there are three main theses. First of all, we need to identify and
understand the most common reasons for expatriate failure will be identified. Second of all, we
need to review all the relevant literature and studies will be reviewed. Finally, based on all the
relevant information and knowledge, we will take steps will be taken in order to recommend and
create a proper pre-departure training program that human resource team should implement when
managing international assignees. Of course, all of the theses have their pros and cons and
therefore we willthey will briefly be explained them now and later on they will be elaborated in
detail.

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 One of the first studies considering the reasons for expatriate failure has been made by
Tung who mentioned the family’s (partner/spouse) inability to adapt as one of the most important
reasons for expatriate’s failure. Other studies have also shown that the family plays a crucial role
in expatriate success. The Brookfield study reports four major reasons for expatriate failure, as
follows: 1) spouse/partner dissatisfaction – sixty five percent; 2)inability to adapt – forty seven
percent; 3) other family concerns – forty percent; 4) poor candidate selection – thirty nine
percent. Several authors have presented different factors that are affecting international assignees
and they have created different methodology in order to properly prepare them to avoid bad
effects of those factors and succeed. For example, cultural training plays a crucial role (Blohm&
Flower, 2004) and it enables expatriates to adapt to the environment faster and makes the
international assignees more effective in their new roles (Dowling, Schuler & Welch, 1994).

It is important to emphasize that not everyone is the same and also not every situation is
the same. Different people and situations demand different treatment, therefore the pre-departure
training programs that are designed cannot apply to every expatriate. That is why, designing a
particular pre-departure training program is core for expatriate success.

RESEARCH QUESTIONS/ RESEARCH OBJECTIVES

We want to find outIn this paper it will be shown what are the main factors which are
influencing the expatriate failure and in the process we want to emphasize the great importance
of designing adequate pre-departure training will be ,emphasized, also an example of practices
we will give examples of practices that would support these claims will be given. We will analyze
allAll of the relevant research made so far will be analyzed in order to gain a better view of the
situation given.
Many recent studies emphasize the importance of selection in the process of choosing the
adequate candidate and we confirmit will be confirmed it is an important step of course, but in
this paper the our main concern will be designing proper pre-departure training. More precisely,
the research questions focusedwe will focus on are:
1. Why is there such a high need for expatriates in the first place?
2. Why is there such a high rate of expatriate failure?
3. What are the most common reasons for expatriate failure?
4. What exists in the current literature regarding training expatriates?
5. Are the existing pre-departure training programs suitable and implemented correctly?
6. Is it possible to improve the existing theories with new findings?

All the questions above will be in detail elaborated in the Master Dissertation.

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RESEARCH METHODS

We will do aA research that will link the theoretical part of designing pre-departure
training programs with all the studies regarding the reasons of expatriate failure will be
conducted. We will try to make In this paper even better understanding of the existing theory will
be made and an we will also investigatione of how of a big role pre-departure training has related
to expatriate failure will be done.

The focus will primarily be on the problem presented in Master Dissertation and an
attempt will be made towe will try to analyze, describe and incorporate the recognition of the
research problem, therefore we will establish specific objectives and questions, literature review,
research methods, results and findings will be established and analyzede them all.

After the completion of gathering the data, an explicit point will be made regarding the
proper pre-departure training programs and also the way they are implemented. All of the data
relates to reasons of expatriate failure and training and that date is an indicator of this research in
order for us to prove the point initially made while using methodology indicated.

In writing the Master Dissertation there will be a combination of theory and literature and
also real life case studies. Methodologically, we will conduct analysis will be conducted in order
to suggest the best possible way to design and implement a pre-departure training program that
will minimize and hopefully prevent expatriate failure.

This study is expected to present how the properly designed pre-departure training will
affect the rates of expatriate failure.

LITERATURE REVIEW

In this case, literature review is based on the relevant books, articles, journals and reports
related to the field of expatriate failure and designing of proper pre-departure training programs.
Furthermore, real life case studies helped scope theour research and objectives. This paper will
also analyze models and frameworks which mostly include selection and training but as
previously noted the emphasis will be on we will emphasize the training process.

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 In the thesis the idea is on the concept of the IHRM, expatriates and their roles, selection
process and pre-departure training programs. Therefore, the most important literature concerns:

- Dowling, P. J., Festing, M. and Engle A. D.,SR, International Human Resource

Management, 6th ed. (Cengage Learning EMEA, 2013)

- Brewster, C., Sparrow, P., Vernon, G., Houldsworth, E., International Human
Resource Management, 3rd ed. (Chartered Institute of Personnel and Development,
2011)

- Tayeb, M. H., International Human Resource Management: A Multinational Company

Perspective (Oxford University Press, Inc., New York, USA, 2005)

- Edwards, T., Rees, C., International Human Resource Management: Globalization,

National Systems and Multinational Companies, 2nd ed. (Pearson Education Limited,
2011)

- Evas, P., Pucik, V., Björkman, I., The Global Challenge: International Human
Resource Management, 2nd ed. (McGraw – Hill Companies, Inc., 2011)

PRACTICAL AND ETHICAL ISSUES

This research paper has its own limitations due to the availability to carry out a more deep
research regarded to the subject of the thesis in the already existing literature. However, we
reviewed some of the most important literature and theories have been reviewed that in our
opinion are relevant to the matter. Also an important thing to state is that repatriation of the
expatriates is not incorporated in theour research and that is why the focus is mainlywe mainly
focused on the expatriates, theirs selection and the pre-departure training part.

Regarding the ethical issue, the our conclusion is based on the assumptions from the
review of the already existing literature and from the practical point of view there is no
availability to access MNCs in order to make private research because of the expenses, time and
cooperation availability of the relevant staff.

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RESEARCH PLAN

An overview of activities plan is given in the table below:

Number Activities Time Required

1. Collection and analysis of relevant literature and 0505.04.2016- 2820.04.2016

scientific journals referring expatriates, IHRM,
selection process, existing pre-departure training
programs, reasons for expatriate failure, relevant
studies, reports and magazines related to latest
findings in the relevant research field.
2. Explanation of the issues regarding to expatriate 280.04.2016 - 0625.054.2015
failure
3. Presentation and explanation of methods for 0625.054.2016 -
researching 1330.054.2016
4. Literature review and identification 1330.054.2016 -
2511.05.2016
5. Determination of questions and objectives and 2511.05.2016 -
contribution of the paper 0118.065.2016
6. Drafting Dissertation proposal 0219.065.2016

7. Reviewing relevant case studies 0219.065.2016 -

0524.065.2016
8. Reviewing and presenting existing methods and 0624.065.2016 -
solutions for preventing expatriate failure 1028.065.2016
9. Interpretation of results 1028.065.2016 -
1202.06.2016
10. Making general conclusion of the performed 1202.06.2016 - 1404.06.2016
research and analyses, giving the proper guidance
and recommendations for future research in this
area.

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 11. Drafting of the final paper 1505.06.2016

REFERENCES:

1. G. Stahl, I. Björkman and S. Morris (eds), Handbook of Research in International Human

Resource Management, 2nd ed. (Cheltenham, UK: Edward Elgar, 2012), p.1.

2. Dowling, P. J., Festing, M. and Engle A. D.,SR, International Human Resource

Management, 6th ed. (Cengage Learning EMEA, 2013)

3. The International Journal of Organizational Analysis 1999, Vol. No. 3 (July), pp. 265-293

4. Tung, R. L., Selection and Training Procedures of US, Europeans and Japanese
Multinationals’, California Management Review, Vol. 25, No. 1 (1982), pp. 57 – 71

5. Brookfield Global Reallocation Services (ed.) Global Relocation Trends: 2010, Survey
Report (2010), p. 50.

6. Blohm, J. M. & Fowler, S.M. (2004). “An Analysis of Methods For Intercultural
Training” in: Bennet, J.M., Bennet, M.J. & Landis, D. (Eds.) Handbook of Intercultural
Training (3rd ed.). Thousand Oaks (USA): Sage, pp. 37-84

7. Dowling, P. J., Schuler, R. S. & Welch, D. E. (1994). International Dimensions of Human

Resource Management (2nd ed.). USA: Wadsworth Publishing