Literature review is a listing of past paper that conducted by the previous researchers and explanation about the terms involve during this study. It aims on the critical tips of current knowledge on a specific topic. This section is important since it can be considered a guideline on how the study can be carried out.
Simon Reich claims that, globalization constitutes a multiplicity of linkages and interconnections that transcend the country state governments (and by implication the societies) which will make up today's world system. It defines a process by which happenings, decisions and activities in one part of the world can come to truly have a significant consequence for folks and areas in quite distant parts of the world. Corresponding Laurence E. Rothenberg, globalization is the acceleration and intensification of connections and integration among the list of people, companies and governments of different nations. Regarding to Farhad Nezhad Haj Ali Irani globalization typically identifies the process where different economies and societies are more closely included, and concurrent with increasing worldwide globalization, there's been much research into its consequences
According to Britannica Concise Encyclopedia, globalization is an activity by which the knowledge of each day life, proclaimed by the diffusion of commodities and ideas, is now standardized surrounding the world. Factors that have added to globalization include significantly sophisticated marketing communications and transportation technology and services, mass migration and the movement of peoples, a level of monetary activity that has outgrown national markets through industrial combinations and commercial groupings that mix national frontiers and international contracts that reduce the cost of conducting business in international countries. Defined broadly, globalization is the process of integrating nations and peoples-politically, economically, and culturally-into a larger community (Gale Encyclopedia of US Foreign Plan). With business becoming more and more global, employees with international experience have grown to be an increasing important concern for multinational companies (Hyder and L¶vblad, 2007).
We reside in a world in which barriers to cross border trade and investment are declining. Travel and telecommunication solutions are constantly making the planet feel smaller. Materials culture seems similar the world over; and countrywide economies are merging into an interdependent, integrated and global economic system. Globalization is the reason for this outstanding shift (Hills, 2007). It is a process that describes the integration of the world community into one common social or economical community. In layman's conditions, globalization means the free circulation of goods and services across edges (Joanne Claire Miranda, 2009).
Globalization has resulted not only in goods and services exploring across borders. It has also resulted in people moving across edges for better occupations and so better wages (Joanne Claire Miranda, 2009). Due to that, it gives positive and negative effects. Favorably, people move easily to reap the benefits of their skills and experience. Businesses have the ability to enter into new market. Negatively, however, as businesses enter into these new establishments or markets, they lack the skills and expertise necessary for that industry and they face not only the challenge of sourcing for the right prospect but also there is no warrant that there would be continuity of service by the skilled personnel. The right candidate should be able to work in the present environment as well as have the ability to teach the associates. If this isn't managed properly, this could become firm's biggest obstacle. In order for these companies to have the competitive advantage in this global marketplace, they need to contain the right person at the right publishing (Hillsides, 2007).
The effects of globalization have led to the amount of expatriates increasing in the developing countries including Malaysia. When Aida and Maimunah performed their analysis on 'Mix Cultural Obstacles and Adjustment among Expatriates in Malaysia, 1999' (Aida and Maimunah, 2007) the amount of expatriates they reported was 21, 859, a body they extracted from the Immigration Figures. In October 2007, the immigration record demonstrated the total quantity of expatriates in Malaysia reaches 35, 583.
Expatriation in Malaysia is not really a new phenomenon. The country has gone through three waves or phases of incoming expatriates. The first band of expatriates that came up to Malaysia is the Britons. These were within private sector and big organizations such as Shell, ICI, Dunlop, Guthries, Harrison and Crosfield and British Petroleum. Other than that, in the government sector, the expatriates are mainly uploaded as advisors, diplomats, academics and complex specialists. The second stage of expatriates came from United states and other European countries whom were assigned in large multinationals such as, Phillips, Siemens, Volvo, Nestle and Esso. Finally, the 3rd influx of expatriates came to Malaysia which were mainly displayed by the Asian group of professionals mainly from Japan, Taiwan and Korea along with some other Western european and American expatriates. This third wave resulted from the "Look East" plan by the federal government in 1980s as well as anticipated to closer relations with Australia and the Newly Industrialized Countries in Asia specifically, along with the high growth of electronics industry in Malaysia. (Aida and Maimunah, 2000)
2. 2 Expatriation Cycle
2. 1. 1 Pre-departure
The pre-departure phase engaged effective selection and prep of expatriate. Most often expatriates are determined from within the corporation. The rationale is the fact that current managers possess the technical competence and they are more in sync with the business's culture. (Maali H. Ashamalla, 1998) Matching to Luftans and Doh, making an effective selection decision for an abroad assignment can be a major problem. Typically, this decision is based on international selection standards which can be factors used to choose international individuals. Those requirements are:-
a) Adaptability to ethnical change
Overseas managers must be able to adapt to change. They also need the amount of ethnical toughness. Research implies that many managers exhilarated at the start of their task. After a few months, however, a kind of culture shock creeps in.
b) Physical and mental health
Most organizations require that their international managers have good physical and emotional health. The mental ability of people to with-stand culture great shock also would be looked at as would the existing marital position as it impacts the individual's potential to cope in a overseas environment.
c) Era, experience and education
There is research that younger professionals are more looking forward to international tasks because they tend to be "worldly" and have a greater understanding of other civilizations than older managers do. On top of that, many companies consider an educational degree, ideally a graduate level to be of critical importance to a global executive.
d) Dialect training
Language can be considered a very critical factor and international experts have described it as "a most reliable indirect approach to learning about a country".
e) Motivation for overseas assignment
Although individuals being dispatched overseas should have a wish to work abroad, normally, this is is not sufficient desire. Experts assume that prospect also must have confidence in the value of the job. Other than that, applicants who are unhappy using their current situation, desire to have excitement or a pioneering spirit, want to increase one's chance for campaign and the chance to improve one's financial position are also seen as great motivators.
f) Spouses and dependents or work-family issues
Experts assume that if the family is unhappy, the administrator often performs poorly and could either be terminated or just opt to leave the business.
However, regarding to Maali H, Ashamalia, characteristics that are viewed for are:-
a) Cultural empathy
The ability to understand and respect beliefs, values, behaviours and business practices of individuals and groups from other culture.
b) Awareness of environment constraint
In a international country, an expatriate is confronted with unfamiliar collections of environmental forces that may be completely different from those of the home country. Ability to identify forces and function within their constraints becomes instrumental to the expatriates for effective decision making.
c) Interpersonal skills
These skills involve effective verbal and non-verbal marketing communications, the capacity to make trust and the capability to utilize referent vitality in managing inside a foreign environment. In addition, it involved the knowledge of distinctions in value orientations such such as the power distance orientation determined by Hofstede.
d) Managerial and Decision Making abilities
It is highly required particularly when a administrator is working under conditions of isolation or physical distances from the centre of decision making in the house office. These competencies are also necessary in situations where expatriates have full autonomy in their overseas positions.
e) Other important qualities
Foreign language proficiency, flexibility, adaptability, entrepreneurship, self-motivation, tolerance for ambiguity, and sensitivity to world happenings and their impact on long-range perspectives of the business enterprise are believed as crucial features for expatriate's selection.
Other than that, Ashamalla also argued that a rigorous selection program should also include the utilization of appropriate selection devices, awareness of the candidate's self-evaluation, time devoted for the choice process where it must be satisfactory and strategic analysis of the abroad operations on the frequent basis. The selection plan also needs to are the expatriate family. In addition, level of intercultural relation, pre-departure preparation, ethnical training, multicultural personality, and complex competent and socio ethnic knowledge is essential in order to determine expatriate, partner and family modification success (Awang-Rozaimie, 2011)
2. 1. 2 During Assignment
Support through the assignment is thought to be essential for moral and psychological sustenance as well for performance success of international professionals. Superiors and HR professionals in the home office need to provide adequate factor to the importance of keeping in close touch using their expatriates and providing them and their families with the needed support. A major source of concern for the administrator while abroad is the increased loss of visibility to prospects in the home office. Sense of isolation from the home realities of the firm and feelings to be away for the organization centers of the power are other sources of concern for professionals while on overseas assignments. During assignment, support may require a variety of formal and casual activities. (Maali H. Ashamalla, 1998)
On the other hands, the Brookfield's Global Relocation Movements Survey 2010 suggested that, six percent of international assignments fail. Therefore, it is vital for expatriates to understand specific psychological features of Malaysian that added with their business performance. Largely, social competency support expatriates' mental well-being and socio cultural adaptabilities (Awang- Rozaimie, 2011)
However, adapting to the new environment will take almost a year. A model developed by Oberg (1960) explains expatriate version as a four-phases process. These stages are honeymoon, culture distress, recovery and modification. Going through these phases in the long run results into successful adaptation in the new environment (Teodora G. Nikolaeva, 2010)
Table 1: Oberg's phases of adaptation
a) Honeymoon
The first phase of this process is the so called honeymoon phase
(Oberg, 1960). This level usually lasts from several days and nights to several weeks and it is characterized by the good attitude of the expatriates about the variety country, its culture and everything new they are meeting. In this stage the employees feel similar to visitors than expatriates. They are simply fired up by the new and are actually thinking about their job. The expatriates are intrigued and interested in everything that is different from what they are used to and at the same time amazed by social similarities. All of this is a result of the nice conditions the expatriates can be found upon their appearance. They stay static in luxurious hotels where they talk to compatriots or natives who speak their terminology or perhaps they have even been appointed a translator; They can be occupied with being shown the sights of the city, finding an accommodation, institution for the kids if they are accompanied by their own families, and depending on the significance of the international task they could even be offering press interviews (Oberg, 1960).
b) Culture Shock
As earlier mentioned the "honeymoon" stage can last from several days to many weeks. Following this period is over, the expatriates get hit by the new culture and everything they may have found amusing as yet starts being irritating which results in culture great shock (Oberg 1960). Oberg (1960) defines this phenomenon as the "occupational disease" the expatriates experience due to constant connection with the new environment and the different situations the number country offers:
"Culture great shock is precipitated by the stress and anxiety that results from shedding all our familiar signs or symptoms and symbols of communal intercourse. These indicators or cues are the thousand and one ways that we orient ourselves to the situations of lifestyle: when to shake hands and what to say whenever we meet people, when and how to provide tips, how to give purchases to servants, how to make purchases, when to simply accept so when to refuse invitations, when to take statements seriously so when not. Now these cues which may be words, gestures, facial expressions, customs, or norms are purchased by most of us throughout growing up and are the maximum amount of an integral part of our culture as the terminology we speak or the values we accept. All of us be dependent for our satisfaction and our efficiency on a huge selection of these cues, most of which we do not keep on the level of conscious recognition. "
All expatriates can be affected by culture shock, but the level to that they suffer is based from the sponsor country and its own specific social characteristics, the personality of the employees and exactly how effective these are in doing their job, their frame of mind towards the folks from the sponsor country and vice versa, and the significance of the international project Based on these factors, culture surprise can effect into misunderstanding about one's actions, anxiety, frustration, exhilaration, actions that do not suit the norms of action, inability to do one's job and therefore not having the ability to hint an important offer, isolation and depression (Teodora G. Nikolaeva, 2010).
c) Recovery
In the restoration level the individuals start coping with their emotions and produce a positive attitude towards the surrounding people and environment of the host country (Oberg 1960). As previously mentioned, learning the language is a beneficial element in understanding the international culture. If the expatriates have gained some understanding of the language, they are able to communicate with their colleagues and rather than criticizing them they start making jokes of these and even start being sarcastic about their dire straits. In addition to that, the employees acknowledge they have some problems and begin asking for help using their company coworkers and steadily reaching the previous phase of the adaptation (Oberg 1960).
d) Adjustment
The final period of the adaptation model is adjustment. At this time all the six aspects of the culture impact are gone and the expatriates are able to perform their job in the simplest way. This is because of the fact that they start taking and adapting to the new environment. The food, the drinks, the people and the customs that used to be regarded as "foreign" are actually seen as wonderful and enjoyable; The individuals become so familiar with the united states and the people so when the task is over and they go back home, they start missing all whatever at some point with their stay was annoying and even disgusting (Oberg, 1960).
2. 1. 3 Repatriation
Luftans and Doh identified repatriation as the return to one's home country from an overseas management assignment. The most frequent reason for expatriation is that the duty is over. However, other reasons might be expatriates want their children educated in a home-country college, they aren't happy with their overseas project and failing to do a good job. Ashamalla argued that there is information that indicate repatriation is not simple and a repatriate director may experience professional as well as personal re-entry problems.
2. 3 Factors donate to challenges faced by expatriates
There are extensive factors that might be the reason why of the problems faced by the expatriate. These factors are became aware through the movement of expatriation routine.
2. 3. 1 Selection will not based on IHRM suggestions.
According to Bonache, Brewster and Suutari, decisions on expatriate selection are usually made in a less than structured and coherent manner, and frequently take by range managers who simply disregard the laid-down requirements espoused by the HR section. They choose to pull from a constrained pool of candidates about whom they feel assured; often people like themselves or those among that group who are plentiful or have shown some interest within an international element to their career.
2. 3. 2 Taking international project for the incorrect reasons.
Some expatriates were thinking of moving abroad in order to leave behind the accumulation of disappointment, misery or boredom in the current life. Others might recognize the international project because of their own expectation and assumption based on the experience they had when visiting compared to that country for any occasion. Due to that, they will face troubles when simple fact or the problem does not meet their expectation.
2. 3. 3 Inability to adapt
Cultural surprises, great shock, discomfort, issues, stress and incompetence occurred credited to inconsistent expectation and lack of ability to obtain appropriate cultural knowledge and skills of variety culture. Incompetence or impairment of expatriates to conform and modify their cultural mindset caused early go back, incomplete assignment goal and put additional expense to company for substitution of new personnel.
2. 3. 4 Family issues
It is normally the trailing partner who suffers the best culture surprise in the new country. The effect is definitely an unhappy spouse would you her better to impair the performance of the expatriate supervisor. Most expatriate professionals are challenged and fired up to maintain their new postings. They need to spend a lot of time at work since they are under pressure to adapt to the new culture and their overall responsibilities are often larger than they have experienced before. As a result, the wives of expatriates spend lots of time by themselves and are cut-off from their own relatives and buddies. At the same time, the wife is usually coping with problems for which she's no past experience. Therefore, the issues expatriates confronted during expatriation could be precipitate from the pressure from home
2. 3. 5 The location of the assignment
The located area of the international assignment can determine the problems experienced by expatriate. Commonly, expatriates come from well developed countries; due to globalization and the demand of global market, producing countries, generally from South East Asia, have a higher demand for expatriate. The dissimilarities between the culture of the expatriates' home country and expatriation location will present cross cultural problems to expatriates.
2. 4 Issues Commonly Confronted by Expatriates
Pre Departure
2. 4. 1 Preparation for departure doesn't seem to be enough.
Due to the fact that management chose the applicant for expatriation predicated on their choice with disregard of IHRM rules, it does not only impact the staff however the family member as well. Firstly, the spouse usually questions if the decision to go abroad is very the best decision for these people.
On Assignment
2. 4. 2 Communication and dialect barriers
They are anticipated to master the neighborhood language and culture, especially because increasingly more local personnel may hold the competitive advantage of local knowledge and links, as well as strong British skills bought while studying abroad. Besides that, expatriate experienced difficulty in communication within the first couple of weeks and to some, it had taken several months to adjust.
2. 4. 3 Changing to the local working culture
Every country has different working culture. Therefore, expatriates will dsicover it challenging to understand how things work at work in a manner where they want to understand the administrative and bureaucratic agreements. Most of the expatriates originated from highly industrialized countries whereby people are used to moving into the fast lane and having competent and successful services. Since the previous working development differs from the working style they are in, it posed as difficult for some expatriates.
2. 4. 4 Higher level of bureaucracy
People at the high management level of their hierarchical positions acquire strong control over the issues at the work area. Therefore, it impacts the movement of work among the list of local people and the expatriates. Decision making processes and length of task conclusion needed longer than expected. This is challenging that expatriates experienced which required some skills of cross cultural negotiations to adjust and also to get over any related problems happen. Generally, the locals' working habit seemed to collide with the expatriates' working habits. Since almost all of expatriates were result from well-developed region, their working tempo is faster and planning becomes better. Thus, when the new environment is employed in much slower tempo, it could turn into a conflict between your expatriates and locals.
2. 4. 5 Adaptability to new environment
Expatriates and family often find it challenging to adapt with the regimens. Trailing spouse might have problem in term of fabricating a home in rented accommodation with limited personal belongings and frequently find herself home by themselves whilst the spouse departs on the business trip in as much weeks. This will cause the exhaustion the working spouse as they make an effort to balance work and home demands. The challenge of creating a significant life for the non-working partner which often entails overcoming a sense of experiencing lost all personal identity which comes with losing the standard cultural, familial and work centered cues. This may lead to homesickness and loneliness where they may miss the familiar and comfortable. Other than that, the children might have problem adjusting with university environment and new education system. Beside individual struggle, parental problem such as providing a stable home environment for children, finding appropriate medical when it's needed and locating the appropriate and suitable college for children are happening as well.
Repatriation
2. 4. 6 Lack of value placed on the international experiences.
It appears that many global companies do not assign much value to the international experience. Therefore, expatriates expectation to career advancement aren't usually became aware. Many European countries are placing increasing focus on standards and qualifications, qualifications, and professionalization of opportunities. Individuals who've been working abroad could find themselves left behind and no longer even qualified for the amount of work they had done prior to departure.
2. 4. 7 Re-establishing a professional network can be challenging.
Due to insufficient communication through the overseas project, an expatriate loses touch with changes that happen in the organization. An expatriate might go back to find that the company has modified beyond recognition which will lead to profession disaster. Even those professional acquaintances who stayed in contact through an expatriate's years in foreign countries, may not feel safe speaking to the repatriate's level of qualifications, especially if they haven't created a clear picture of the day- to-day tasks completed in the international work area.
2. 4. 8 The expatriate and members of the family may also experience reverse culture impact. Many repatriates aren't well prepared for the culture distress that they experience after coming back home. Although culture great shock is a task expected by most immigrants and expatriates as they prepare to move overseas, it can catch repatriates off safeguard. Many have struggled with adjusting to the elements, food, lifestyle, and even basic local chores and driving; especially if coming back from a country where the norm was to employ home help. Repatriates could also find local biases unpleasant, particularly if directed at a culture or group with which they have grown to be quite familiar and that they have grown to understand.
