When Managing Expatriate Adjustment, Don't Forget the SpouseAuthor(s): Talya N. Bauer and Sully TaylorSource: The Academy of Management Executive (1993-2005), Vol. 15, No. 4, Themes: BusinessStrategies and Employee Development (Nov., 2001), pp. 135-137Published by: Academy of ManagementStable URL: http://www.jstor.org/stable/4165793 .Accessed: 08/06/2014 11:51

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2001 Research Briefs 135

On the other hand, while offering teamwork, de- centralized decision making, and group-based pay (i.e., pay/organization practices) to nonmanagers was linked to better subsidiary performance, it didn't seem to increase performance when used with managers. Fey and Bjorkman suspect that the Soviet-era tendency to discourage managers from taking responsibility and personal initiative may help account for this surprising result.

The opposite pattern, however, was observed for feedback mechanisms. Offering ways to share in- formation up the line and learn more about com- pany activities was positively related to subsid- iary performance for managers, but not other employees. Traditionally, there was very little in the way of information sharing between manage- ment ranks in Russian firms, perhaps because of deference to authority and high power distance. To the extent that this tradition persists in Russian business circles, having an extensive exchange and flow of information between top and middle management may give Western-owned subsidiar- ies a competitive advantage in Russia.

On the other hand, the absence of a performance relationship for feedback mechanisms aimed at nonmanagerial employees suggests that the same tradition may be at work, with employees gener- ally not expecting extensive feedback or informa- tion sharing with superiors. Another factor is that information sharing and communication with top management may be less important for these em- ployees' jobs than for middle management.

Fey and Bjorkman also point out some limita- tions of their study, one being causality. Collecting data at multiple points in time would make it eas- ier to draw causal connections between HRM prac- tices and subsidiary performance.

Despite such limitations, Fey and Bjorkman's re- search offers several important implications for both Western MNCs intent on setting up subsidiar- ies in Russia, as well as those already operating there. First and foremost, Western firms need to realize that their performance in Russia may be driven by the HRM practices they use. For instance, employee development practices were positively linked to subsidiary performance when used with both managers and nonmanagers. Of course, it isn't clear which specific development practices will have the most positive leverage with Russian employees and, ultimately, subsidiary perfor- mance.

Fey and Bjorkman's message is that a shotgun approach, one where the same practices are used across all employees, is probably not advisable. Instead, subsidiary performance is likely to be driven by different bundles of HRM practices tai-

lored to specific groups of employees. For example, the best bet with Russian managers may be to concentrate on feedback and information systems, while focusing on teamwork and group-based per- formance rewards for nonmanagers. In other words, not all HRM practices are equal, at least when it comes to achieving business success in Russia.

Source: Fey, C. F., & Bjorkman, I. 2001. The effect of human resource management practices on MNC subsidiary perfor- mance in Russia. Journal of International Business Studies, 32(1): 59-75.

When Managing Expatriate Adjustment, Don't Forget the Spouse Talya N. Bauer, Portland State University Sully Taylor, Portland State University

How can firms maximize the success of expatriate assignments? Thanks to globalization, many com- panies continue to send increasing numbers of expatriates abroad to manage their burgeoning foreign operations. Of course, expatriates repre- sent a potential competitive advantage for interna- tional corporations. But expatriates also represent a big financial drain for companies, especially when they fail. And failing can have serious neg- ative consequences for expatriates' careers.

In recent years, companies have improved the cross-cultural training offered to expatriates. But the spouses who relocate with them are often over- looked and given little or no training and support. This is a major oversight, since poor adjustment by a spouse is a key reason why expatriates return early from their assignments. What's staggering is the potential scope of this complex problem. Com- panies that ignore spouse adjustment may contrib- ute to the alienation experienced by the more than one million spouses who take part in international relocations.

One possible reason why spouses often are over- looked is that the factors that relate to their adjust- ment have received almost no research attention and aren't well understood. On top of that, what we know about expatriate adjustment isn't very useful for understanding the adjustment challenges that a spouse often faces. For example, spouses typi- cally interact more extensively with the local com- munity than expatriates.

Margaret A. Shaffer, a researcher from the Hong Kong Baptist University, and David A. Harrison, a researcher from Pennsylvania State University, un- dertook a two-part study to better understand spouse adjustment and the processes involved.

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136 Academy of Management Executive November

First, they conducted in-depth interviews with the spouses of expatriates who had returned from a variety of countries. Shaffer and Harrison included spouses who had adjusted well and those who had experienced significant adjustment difficulties.

After analyzing the interviews and previous re- search, they concluded that spouse adjustment consists of three dimensions: how well the spouse builds relationships with host-country nationals, how well the spouse adjusts to local customs and the culture in general, and the extent to which the spouse has a sense of becoming part of or feeling at home in the foreign country (a more inwardly focused dimension of personal adjustment). Shaf- fer and Harrison believe that achieving successful adjustment in all three dimensions depends on whether the spouse can reestablish his or her iden- tity in the new culture. When we enter a new cul- ture, our self-concept is often challenged because our normal ways of reinforcing identity don't work, such as how we interact socially.

Next, Shaffer and Harrison sent surveys to 221 expatriate couples to see if the factors that help establish these different identities led to better adjustment of the spouse. The expatriates worked for 10 different U.S. multinationals in 37 countries. Obtaining the views of the expatriates themselves helped corroborate the spouse's adjustment from another source. Their results showed that foreign- language skill was the factor that most influenced the ability to rebuild a personal sense of identity and, as a result, achieve greater adjustment. Hav- ing foreign-language skills has also been found to be very helpful for expatriates. Interestingly, Shaf- fer and Harrison found that a change in employ- ment status (e.g., the spouse's giving up a job to go overseas) had no impact on adjustment. But the researchers noted that they had little information about the spouse's previous employment history or career stage. Paradoxically, spouses who go into a foreign environment feeling that they have good social skills are actually somewhat less likely to adjust successfully. Perhaps some spouses be- came frustrated when their normally effective so- cial behaviors fell short abroad.

Paradoxically, spouses who go into a foreign environment feeling that they have good social skills are actually somewhat less likely to adjust successfully.

The survey also revealed that the greatest im- pact on adjustment comes from the spouses' arbility

to reestablish a social sense of themselves. Family was particularly important in that regard, but in an unexpected way. Spouses with strong extended families adjusted poorly, perhaps because they fo- cused on family members left back home. Like- wise, children played a key role, but their impact varied by age. In families with young children, spouses were better adjusted than in families with no children or school-age children. This may be the case because spouses with young children are car- rying out the same family responsibilities that they would at home. Consequently, they experience less disruption in this part of their social identities. An expatriate's adjustment also affects his or her spouse. Indeed, a negative spiral can occur, with each person's problems creating more adjustment difficulties for their partner.

Another surprising finding was that greater cer- tainty about the length of the foreign assignment did not improve adjustment. Knowing how long it will be until they can reunite with their extended families or resume their careers could have a calming effect on spouse anxiety. But when the spouse was living in a culture not too dissimilar from that of the home country, and when the living conditions were at least as good as those at home, adjustment was better regardless. According to previous research, this finding for spouses holds true for expatriate employees as well.

Shaffer and Harrison's model is an extremely useful way of conceptualizing how spouses can successfully adjust to a foreign environment. By viewing the spouse as having various identities that are challenged abroad, both companies and expatriate families can better prepare themselves, more clearly understand what is happening to them, and take proactive steps to successfully ad- just. Especially encouraging is the support found for several of the factors thought to affect identity and adjustment.

Because the model was developed from a limited amount of previous research and a fairly small set of 10 interviews, it needs to be tested and exam- ined in different contexts. Likewise, only five per- cent of the spouses were male. Since dual-career couples are increasingly likely to be sent overseas, we need to better understand any differences in the adjustment process between male and female spouses. Several results also need to be examined more closely before any practical applications are developed. In particular, it is premature to say that a change in employment does not affect a spouse's adjustment. We simply need to know more.

In the end, what is especially fascinating about these results is that many of the assets spouses believe they have going into a relocation context

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2001 Research Briefs 137

(e.g., perceived social skills) were often of no help, or actually worked against their successful adjust- ment. The implications are crystal clear. First, companies should give realistic job previews to spouses both prior to and during relocation. This will help spouses accurately identify the chal- lenges they will face as well as the personal assets they can bring to bear.

Companies should also take steps to ensure that spouses learn language skills, build good social networks, and establish a new social identity if they want to increase the odds of expatriate suc- cess. While some spouses may naturally form new social identities on their own, firms that help facil- itate this process by offering programs such as social events with host-country nationals, cultural counselors, pre-relocation training, and cultural education are doing themselves a favor. That is a small price to pay for avoiding many of the nega- tive consequences of premature expatriate depar- ture.

Source: Shaffer, M. A., & Harrison, D. A. 2001. Forgotten part- ners of international assignments: Development and test of a model of spouse adjustment. Journal of Applied Psychology, 86(2): 238-254.

The Journey From Heir Apparent to CEO: Win, Wait, or Walk? Deborah J. Bickford, University of Dayton

Waiting to assume his place as King of England, Prince Charles cannot don the crown until his mother, Queen Elizabeth, steps down. Since that action doesn't appear to be imminent, Charles must wait. And then wait some more. As it turns out, he's not alone.

According to research by Albert Cannella, of Texas A&M University, and Wei Shen, of Rutgers University, waiting is what CEO 'heirs apparent' do a lot of. In fact, of the 152 prospective CEOs Cannella and Shen studied, almost 40 percent were just sitting tight. They weren't leaving to pur- sue other opportunities or moving toward promo- tion. Instead, they were in a waiting mode. But why do some heirs apparent move toward the CEO's chair while others are stuck waiting around or finally decide to leave the firm? And what do the reasons imply for different constituents during this crucial period of transfer of power? Cannella and Shen explored these questions in their research.

Given the importance of leadership renewal, it is not surprising that executive succession has at- tracted considerable research attention. But the lion's share of that attention has centered on the

time surrounding an actual change in leadership, often with an eye on the characteristics of the in- coming CEO. Much less attention has been paid to what happens before the transfer of power, espe- cially during the pre-ascension stage when an heir apparent emerges and is groomed for the top spot.

Cannella and Shen believe that theirs is the first empirical study to address this important area of leadership selection and development. They view CEO succession as the result of a political process that reflects the relative distribution of power among the three parties directly involved in the succession: the incumbent CEO, the outside mem- bers of the board of directors, and the heir appar- ent. Cannella and Shen make a compelling argu- ment for the need to know how these power issues affect what happens to heirs apparent-why some are promoted to CEO positions and others are not. Armed with such knowledge, incumbent CEOs, outside directors, and heirs apparent could all make more informed decisions about navigating a process critical to the orderly transfer of power in corporations.

Cannella and Shen collected data on heir-appar- ent promotion and exit from 168 large American manufacturing companies over a 10-year period from 1986 to 1996. Through a laborious process, Cannella and Shen were able to identify 152 heirs apparent and what happened to them over time. They also looked for pattern differences in what heirs apparent experienced during periods of high and low firm performance.

What they found is intriguing. As it turns out, incumbent CEOs are highly influential in the power- transfer process. When CEO power is strong, heirs apparent are less likely to make it to the top, per- haps because powerful CEOs maneuver to avoid the loss of influence, prestige, and money that comes with stepping down. At the same time, how- ever, when the firm is performing poorly, having a powerful CEO makes it less likely that an heir apparent will depart.

When CEO power is strong, heirs apparent are less likely to make it to the top, perhaps because powerful CEOs maneuver to avoid the loss of influence, prestige, and money that comes with stepping down.

Cannella and Shen also found interesting effects for outside directors. On the one hand, outside directors often limit themselves to monitoring the succession process atnd counterbalatncing the

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Article Contentsp. 135p. 136p. 137

Issue Table of ContentsThe Academy of Management Executive (1993-2005), Vol. 15, No. 4, Themes: Business Strategies and Employee Development (Nov., 2001), pp. 1-154Volume Information [pp. 151-153]Front Matter [pp. 1-4]From the Editor [pp. 5-8]Country Close-Up: RussiaCountry at a Glance [p. 9]Deputy Prime Minister Aleksei Kudrin on Creating a Positive Business Climate in Russia [pp. 10-15]Troika Dialog's Founder Ruben Vardanian on Building Russia's First Investment Bank [pp. 16-23]Navigating the Hostile Maze: A Framework for Russian Entrepreneurship [and Executive Commentary] [pp. 24-38]

Executive VoiceMedtronic's Chairman William George on How Mission-Driven Companies Create Long-Term Shareholder Value [pp. 39-47]

Are You Sure You Have a Strategy? [pp. 48-59]Improving Firm Performance through Entrepreneurial Actions: Acordia's Corporate Entrepreneurship Strategy [pp. 60-71]Learning from Successful Local Private Firms in China: Establishing Legitimacy [pp. 72-83]The Power of Emotional Appeals in Promoting Organizational Change Programs [and Executive Commentary] [pp. 84-95]How to Keep Your Best Employees: Developing an Effective Retention Policy [and Executive Commentary] [pp. 96-109]Learning, Not Litigating: Managing Employee Development and Avoiding Claims of Age Discrimination [pp. 110-121]Management Fads: Emergence, Evolution, and Implications for Managers [pp. 122-133]Research BriefsHuman Resource Practices and the Bottom Line in Russian Subsidiaries [pp. 134-135]When Managing Expatriate Adjustment, Don't Forget the Spouse [pp. 135-137]The Journey from Heir Apparent to CEO: Win, Wait, or Walk? [pp. 137-138]

Book ReviewsReview: untitled [pp. 139-140]Review: untitled [pp. 140-142]Review: untitled [pp. 142-143]Review: untitled [pp. 143-145]Review: untitled [pp. 145-147]Review: untitled [pp. 147-148]

Back Matter [pp. 149-154]