Reinventing IHRM Factors for Expatriate Satisfaction in IT Sector in Asia and Outside Asia.

 

Mrs. Vibha Sharma1, Dr. Mitu G. Matta2

1Research Scholar, Lingya’s University, Faridabad India.

2Associate Professor, Lingya’s University, Business Administration Department, Nachauli, Jasana Road, Old Faridabad, Haryana India

*Corresponding Author E-mail: vibha85sharma@gmail.com, mitu.matta@gmail.com

 

ABSTRACT:

Expatriates are significant workforce for any MNCs in IT Sector. As the world becomes a smaller place with different cultures workforce working together, the need for International Managers increases to understand clients and teams. It is critical to retain an expat employee in a competitive environment. The IHRM factors and policies and practices are critical for any IT organization to retain its talent. In the light of this the objective of the study is to analyse the various determinants and factors of IHRM in designing the policies and practices for expatriate. It is also worth analyzing what changes have occurred in these IHRM strategies in the light of global economic crisis.

 

KEYWORDS: Expatriate, Satisfaction, IHRM, Policies and Practices, Determinants.

 

 

 

1. INTRODUCTION:

The emerging significance of Multi-National Companies (MNCs) and the requirement to compete in a globalized market has led to the prominence and upsurge in international assignments. Ever since the ‘90s, the IT sector in India has drawn continuous attention across the globe (Upadhya, C. 2009). Multinational companies send their IT workers for onsite work, which is reflected to be as a primary requisite of IT work (Upadhya, C. 2009). An extremely small percentage of these employees move to their onsite appointments at client locations, to work closely with them and define project requirements, coordinate with the offshore team on a regular basis and secure business from clients. (Upadhya, C. and Vasavi, A.R. 2006; Agarwal, N.M., Khatri, N. and Srinivasan, R. 2012).

 

According to the NASSCOM report, Indian IT-BPM sector is expected to grow and achieve its estimated target of USD 225 billion by 2020. Since 1990 till 2015, the IT sector has shown a spectacular growth in revenue, employees, no of firms, GDP share, export share and global sourcing share. According to a NASSCOM report, IT-BPM Industry Global market in the year 2015 has aggregated a global spend of about USD 1.2 trillion and the global sourcing at USD 162-166 billion, with a phenomenal growth of 8.5% with the global presence in more than 80 countries. India is the top most sourcing locations in global IT-BPM market, with a presence in 50 locations. The Indian Market is showing a splendid growth in every field in revenue which has grown by (8.5%), exports are up by (10.3%), domestic are up by (3.2%) and employees are up by (6%).

 

The Global IT sector is growing rapidly and has become robust as well as the demand for international assignments is emerging as one of the important aspects of International HRM. In this globalized and competitive era, to retain clients internationally is a tremendous task of international managers and the global workforce.

 

INTERNATIONAL HUMAN RESOURCE MANAGEMENT:

The evolution of global business and economy has led to extensive search for human touch leads to search for global competence – managerial, cultural and operational. Global competence is embedded in organizational talent and its workforce with its systems and leadership that manages and deploys it, but it is increasingly embedded within a workforce that lies beyond the familiar boundaries of regular full-time employment, and is empowered by technologies, platforms and connectedness.

 

The field of IHRM is evolving regularly with Lot of scope and importance in this area. From the mid-1980s till 1990s, the field of IHRM was considered to be in its ‘infancy’ (Laurent, A. 1986). Since its early stages, there has both an evolution of territory covered by the IHRM field as well as more critical discussion of whether this evolution has been towards an expanded field or not. Thus, International Human Resource Management (IHRM) as a term has evolved and now it is defined to include several components/practices in its ambit. However, there is no consensus about what the term IHRM Covers, although most studies in the area have traditionally focused on the area of expatriation (Brewster, C., and Harris, H., 1999) In the initial phases, attention in IHRM is focused on the selection (identifying predictors of success) and compensation of expatriate employees (Reynolds, C. 1997; Schneider, S and Tung, R. 2001; Schuler, R.S., and Jackson, S.E., 2005). Today the management of expatriates continues to be a significant IHRM activity and an active area of research (Shaffer, M.A., Kraimer, M.L., Chen, Y.P. and Bolino, M.C., 2012).

 

International HRM is concerned with identifying and understanding how MNCs manage their geographically dispersed workforces in order to leverage their HR resources for both local and global competitive advantage (Schuler, R.S., Budhwar, P.S. and Florkowski, G.W. (2002).

 

According to P.V. Morgan model the main IHRM Activities are procurement, allocation and utilization of human resources focusing on all the six activities of domestics HRM i.e., HR planning, Employees Hiring, Training and Development, Remuneration, Performance Management and Industrial Relations. According to Black et al (1991) he develops a theoretical frame work of International adjustment which he divided into Anticipatory Adjustment which is prior to the assignment phase and In -country Adjustment which is identified as on assignment phase for expatriates. In the table 1.1 the IHRM practices are shown on the basis of pre assignment and on assignment phase and what are the various areas covered in these phases.

 

IHRM PRACTICES FOR EXPATRIATES:

Table1.1 IHRM Practices

Pre assignment Phase 

On Assignment Phase 

Candidate preparation

Organisational support system

Pre departure Training

Perceived organizational Support

Family Preparation.

Work factors

 

Non work factors

 

Family factors

 

Harvey, M. and Moeller, M., (2009), in their study proposed a model of IHRM process and identified eight stages of the HRM process for expatriates, Identification, Selection, Training and Development, Compensation, Performance Appraisal, Retention and Turnover, Succession Planning and Repatriation. Recently, definitions have been extended to cover localization of management, international coordination, global leadership development and the emerging cultural challenges of global knowledge management (Evans, P., Pucik, V. and Barsoux, J.L., 2002), This suggests that developing future global leaders is a key priority in the management of human resources in the global firm (Gregerson et al., 1998; Scullion, H. and Starkey, K., 2000).

 

2. REVIEW OF LITERATURE:

2.1 IT sector in India and HRM:

Agrawal, N.M. and Thite, M. (2003) in their paper had tried to explore Indian software industry with the focus on its one of critical challenges: HRM. In yet another study, Agarwal, et.al (2006) had discussed the difficulties faced by Indian IT project leaders in running their projects and the need for soft skills. Budhwar, P.S., Luthar, H.K. and Bhatnagar, J. (2006) in their study had attempted to examine the BPO of Indian IT industry and to distinguish the dynamics of Human Resource management practices and systems. Upadhya, C. and Vasavi, A.R. (2006), in their research report tried to examine the Indian IT workforce. The main objective of the report is to document the social and cultural transformations that have been set in motion by the rapid growth of the IT and ITES industries in India and to throw some light on big process of globalization. Friedmann, C., Holtbrugge, D. and Puck, J. (2008) in their article has highlighted that human resource management faces challenges in Indian software industry. However, this unprecedented growth of the software industry has brought several HRM opportunities to counter these challenges from an HR perspective. The above Extant literature on IT industry and HRM issues shows that there are researches in the IT industry and its HRM practices (Agrawal, N.M. and Thite, M. (2003), Budhwar, P.S., Luthar, H.K. and Bhatnagar, J. (2006), Paul, A.K. and Anantharaman, R.N. (2008), Friedmann, C., Holtbrugge, D. and Puck, J. (2008), Agarwal, N.M., Khatri, N. and Srinivasan, R. 2012) but they have not looked at the HRM issues while sending IT expatriates on international assignments.

 

2.2 IHRM Determinants and Expatriate Satisfaction:

In their seminal work, Naumann, E. (1993), in his study tried to explore the factors, which were under the control of the organization and has the potential to predict expatriate job satisfaction.

 

Downes, M., Thomas, A.S. and McLarney, C. (2000), in their study focused on international transfer of knowledge and corporate learning that were the determinants in overall satisfaction of expatriates. The results showed that satisfaction is significantly related to performance of the organization as a whole.

 

Bonache, J., Brewster, C. and Suutari, V. (2001), in their study focused on the critical issues like Expatriation Strategy, Selection and Pre-Departure training, Compensation, Performance Management, Repatriation and Career Management. The burgeoning research in the field is set into context and a plea made for a more varied and imaginative research agenda.

 

Downes, M., Thomas, A.S., Singley, R.B. (2002), in their study tried to examines the concept, as the companies gain experience in the global marketplace; the determinants of job satisfaction vary. Findings partially support this theoretical argument and confirm the expectation that the impact of mentoring on satisfaction will lessen over the course of firm internationalization. Further, the impact of training on expatriate satisfaction was more pronounced for highly internationalized firms than for those with limited exposure abroad.

 

In context of compensation, Schraeder, M. and Sims, R.H. (2005), identified compensation approaches as primarily focused on host country cost of living, housing, dependent education, tax implications and health care factors and secondary approaches. Yongsun Paik, K. Praveen Parboteeah and Wonshul Shim (2007), said compensation is significantly related to commitment is very important and it further suggested that commitment is positively related to job satisfaction and performance.

 

In relation to Organizational support and family adjustment, Avril, A.B. and Magnini, V.P., (2007), in their study focused on holistic Selection, Training and Organizational Support approach. The research laid emphasis on variables namely family status, emotional intelligence, dietary and exercise habits, and his/her learning orientation which helps in improving expatriate success in hotel industry. As per, Ching-Hsiang Liu Hung-Wen Lee, (2008) found the relationship between job satisfaction, family support, learning orientation, organizational socialization and cross-cultural training and cross-cultural adjustment in the proposed model. This study found that job satisfaction played an important role in the proposed model of expatriate adjustment in an international assignment. Also found to be of importance was the role of organization socialization.

 

Evelina, M. Ascalon, D. J., and Schleicher, M.B., (2008), in their study, suggested that Cross Cultural Social Intelligence (CCSI) is important for selecting and developing expatriates and other employees in Cross-culture context. Littrell, L.N. and Salas, E. (2005), in their study tried to find out what best practices are required for Cross-cultural training (CCT) and to know what the organization is doing right now and what they should be doing to understand expatriate needs.

 

Shortland, S., (2009), suggested the most promising theoretical explanation of women’s low participation as expatriates is identified as being linked to gender stereotyping reinforced within an isomorphic institutional framework.

 

Benson, G.S. and Pattie, M. (2009), found that The Host Country Supervisor had influences on present country and short term outcomes related to adjustment and completion of assignments. Home country supervisors have greater influences on overall fitness in the job and longer-term perceptions of how the overseas assignment will impact their career. The result suggested that home and host supervisor influence expatriates differently.

 

Moulik, S.R. and Mazumdar, S. (2012), in their study, tried to identify factors that impact expatriate satisfaction in the software industry. It was found that Job Considerations and Career Growth, Pre-assignment Preparedness, Acculturation and Adjustment, Family Issues and Organizational Attitude towards Repatriation were identified factors through exploratory factor analysis. There exists a significant relation between Job Considerations and Career Growth and Organizational Attitude towards Repatriation towards expatriate satisfaction.

 

The review of literature on IHRM helps in identifying collaborative variables which are vital for expatriates and companies who are sending them on international assignments. A large number of the researches are done in expatriate experience and adjustment on assignment, their job performance on international assignment, job satisfaction on international assignment. Researchers are done in individual fields also like Predictors for expatriate adjustment on international assignment, Cross culture adjustment, Pre-departure and CCT training and Repatriation adjustment, Women stereotyping as International Managers and Expatriate compensation. The present study is covering nearly eight demographics variables and 40 IHRM practices variables after doing a rigorous research review. The variables in the present study are generally covering the areas of Cross Cultural Training, Job Consideration, Organizational Support, Socialization, Compensation and allowances, Supervision and Promotional opportunities and Career Support and Skills, Colleagues, Language and Family Issues. They are important for employees as well as MNCs.

 

3. RESEARCH OBJETIVE:

1.    To propose IHRM factors influencing Expat satisfaction among Indian origin IT expats working on international assignment in Asia and outside Asia

2.    To relatively analyze the impact of these IHRM factors on overall Expat satisfaction.

·      H01: Cross-Cultural Training has no significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      Ha1: Cross-Cultural Training has a significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      H02: On- job support has no significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      Ha2: On- job support has a significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      H03: Social Acceptance has no significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      Ha3: Social Acceptance has a significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      H04: Pre-Departure Training has no significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      Ha4: Pre-Departure Training has a significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      H05 Remuneration has no significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      Ha5: Remuneration has a significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      H06: Role Importance has no significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      Ha6: Role Importance has a significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      H07: Expat Allowance has no significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      Ha7: Expat Allowance has a significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      H08: Promotional Opportunity and Supervision has no significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

·      Ha8: Promotional Opportunity and Supervision has a significant effect on overall Satisfaction for Indian origin expats on assignment in Asia and outside Asia.

 

4. RESEARCH METHODOLOGY:

This research is conducted in 2015-2016.An exploratory-cum-descriptive research design is used to understand the review of literature and helps in the formulation of objectives and hypothesis as well as identifying the variables for the present study. It is later on followed by descriptive research to design a questionnaire, data is collected using quantitative survey with the help of Likert five point scales, analyzing the data, testing the hypothesis and drawing the final conclusion. A systematic non-probability judgmental sampling is used as a technique to collect data. A structured questionnaire is constructed from the Scales of expatriation studies of Naumann 1993; Downes 2000; Koteshwari and Bhattacharya, 2007, Black (1980), Selmer (1995) and Adler (2002), Christelle Tornikoski (2011) and ABRIDGE JDI INDEX, Bowling Green State University 1975-2000 and one or two questions developed by author of the research also.

 

The data collection was done with help of on line websites to collect the data and is sent to respondents in Asia (Thailand, Malaysia and Singapore) and Non Asia (US and UK), via: Facebook – Expat community pages, Linkedin – Expat professional groups, Gmail contacts of known Expats, face to face interaction by visiting IT companies (TCS, Infosys, Cognizant, DTAC, IBM, and DUNNHUMBY etc.) and by participating in Expat community social events.

 

The validity of the questionnaire is established taking items from many constructs and reliability is also established using Cronbach’s alpha. The table 4.1 indicates the reliability statistics of all the items.

 

Table 4.1 Reliability statistics of all the items

Reliability Statistics

Cronbach's Alpha

N of Items

.943

45

 

5. ANALYSIS OF FINDINGS:

IHRM factors impacting the Expat satisfaction is Factor analysed using the Exploratory Factor Analysis technique (EFA). The tools for analyzing the data are MS Excel for data entry and analysis of data is done using SPSS 19.0. In total data is collected through 141 expatriate working in Asia and outside Asia. Out of 141questionnaires collected

·      80.9 % were males and 19.1% were females

·      Maximum respondents are from the age group of 25-35 years and 35-45 years.

·      54.6% of the respondents are married with children.

·      Most of the respondents are at the middle level i.e. 53.9 % and senior positions 44%.

·      As far as region, 73 respondents out of 141 are from Asia and 68 respondents out of 141 are from Non Asian countries.

·      In Expat tenure the majority of respondents are above 5 years of experience i.e. 42.1%.

 

5.1 FACTOR ANALYSIS:

Factor analysis also called as the ‘Exploratory Factor Analysis’ (EFA) is a method used for reducing the number of variables in a data. At the onset it was pertinent to check whether the data set was suitable for Factor Analysis or not. This was checked using the KMO and the Bartlett tests shown in table 5.1 which yielded desirable values to proceed further with Factor Analysis.

Table 5.1: Table Of KMO and Bartlett's Testa

KMO and Bartlett's Testa

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.884

Bartlett's Test of Sphericity

Approx. Chi-Square

3629.096

Df

780

Sig.

.000

a. Only cases for which Segment = ALL are used in the analysis phase.

 

The Kaiser-Meyer-Olkin measure of sampling adequacy shown in table 5.1 was. 884, above the commonly recommended value of. 6, and Bartlett’s test of sphericity was significant χ2 = 780, p < .05. As a step further, Reliability tests were also conducted using the Cronbach Alpha scores and it was found satisfactory. The overall reliability score of all the 45 variables is .943 and all the 9 factors combine is .856. The values of the Cronbach Alpha for the factors so extracted are individually presented in the table no 5.2. And factor loading column shows all the highest values ranging from (-1 to +1).

 

 

 

Table 5.2 FACTOR ANALYSIS FOR COMPONENTS AND VARIATION

Name of the Dimension

Item No

Statements

Factor Loadings

Variation %

Reliability Cronbach’s Alpha

Cross Cultural Training

6

Please rate the effectiveness of Attribution training

.865

33.783

0.943

7

Please rate  the effectiveness of Cultural Awareness Training

.823

8

Please rate  the effectiveness of Language training

.849

9

Please rate the effectiveness of Didactic training

.902

10

Please rate the effectiveness of Experiential training

.837

On Job Support

17

I can communicate and socialize with my work group in the new country.

.461

8.685

0.892

18

I receive support from colleagues in my expat assignment without any discrimination as to my nationality.

.723

19

My co-workers are willing to listen to my personal problems if I approach them, like they would in my native place.

.644

20

My supervisor back home explained how this job would positively impact my career

.535

21

I shall be considered for future opportunities if I perform well in this assignment as compared to other employees in the host country.

.709

22

I am given adequate opportunity for learning and development in the course of my assignment as others employees in the host country.

.654

23

I can understand my career progression compared to my national employees in relation to my present assignment

.663

Social Acceptance

25

I feel that my immediate family has adjusted to the new culture and environment.

.601

5.734

0.840

26

I understand the ‘dual career spouse issues’ on my expat assignment.

.367

27

 I celebrate Festivals with the usual spirit as in my home country

.643

28

I am comfortable in participating in ethnic group activities

.710

29

I feel comfortable in socializing with locals outside my work

.783

30

I like Culinary/food choices that I find here

.698

Pre Departure Training

1

My willingness to relocate was discussed with me prior to my selection for the assignment

.672

4.508

0.859

2

On selection I was clearly briefed of my responsibilities/job requirements.

.537

3

On selection I was supported by HR for relocation expenses, like air fare expenses, housing facilities, and kids schooling

.596

4

I got sufficient time to prepare prior to leaving for the assignment.

.648

5

Pre-departure training including, Visa interview training were provided to me prior to my assignment.

.726

16

I have ample connectivity with team back home w.r.t my assignment

.462

Expat Remuneration

14

I feel that my remuneration package is at par with other expats in the region.

.663

4.233

0.775

15

I am given due vacation adjustments to visit home.

.642

38

Think of the pay you get now.

.666

Role Importance

11

I feel that my work responsibilities here are more than work back home

.776

3.500

0.781

12

I am given ample autonomy for my performance as compared to other employees

.649

13

My role is significant in the project as compared to other employees.

.640

24

I expect to gain significant business skills during my expat assignment

.485

Expat Allowance

32

I feel that the Travel , Health and Accident insurance coverage is adequate as per my expectations on assignment

.755

3.332

0.757

33

I feel that the  Housing allowance, Education and Travel allowance is adequate as per my expectations on assignment

.519

35

I have the provision of Relocation allowance (compensation for cost of physical transfer for entire family)

.625

Promotional Opportunity and Supervision

39

I am satisfied with the promotional opportunities in this expat assignment

.721

2.916

0.677

40

I am satisfied with the kind of supervision I have received

.735

Local Barriers, People and Language

31

I am conversant with local language in my present assignment.

.464

2.577

0.412

36

I am satisfied with majority of the peers with whom I work

.538

37

I am satisfied with my current job profile.

.705

 

 

IHRM Factors /Components:

The 9 significant factors are tested for reliability using the technique of Cronbach’s Alpha and all the factors scores are greater than 0.6 except one. Two factors are dropped one dual career allowance that include only one question and local barrier people and language is dropped because the reliability score is less that .6 and From the ten  major factors ,eight factors are important for expatriates IHRM practices.

 

CROSS CULTURAL TRAINING (CCT) contain 5 items and explained 33.783% variance in the data. CCT has been identified as a major technique for improving the cross-cultural effectiveness of managers (Bhagat and Prien, 1996; Bhawuk and Brislin, 2000; Deshpande and Viswesvaran, 1992).

 

ON-JOB SUPPORT contains 7 items and explained 8.685% variance in the data. For expats on job support generally deals with the support from the oragnisation to better adjust to the international assignment. The work environment with colleagues should be conducive and open so that expat can easily interact with the work group and feel a sense of togetherness as a team.

 

SOCIAL ACCEPTANCE contains 6 items and explained 5.734% variance in the data. Expats who are more open to culture and are more extroverts and are more cultural flexible to accept new environment, traditions and behavior and think of them as of the same value not less than other and are sensitive to other culture have better adjustment abilities and job performance.

 

PRE- DEPARTURE TRAINING contains 6 items and explained 4.508 %variance in the data. It is the orientation and training that expatriates and their families receive before departure and have a major impact on the success of the overseas assignment. Companies should have formal training programs for expatriates and their families, so that it helps and have a positive effect on cross-cultural adjustment.

 

EXPAT REMUNERATION contains 3 items and explained 4.293%variance in the data. Remuneration should be at par with market scenario of expats at global level and with other colleagues, including all the major components of expat pay and vacations. It is one of the key factors for expat satisfaction. Extrinsic compensation includes both monetary and non-monetary rewards like:

·      Premiums: Expat premium, COLA, Mobility and installation cost.

·      Tax: Tax and social security equalization and Tax and social security protection.

·      Benefits in kinds: Allowances for house, car, moving and storage, health care and insurance.

·      Family Package: Children scholarship and Assistance to spouse to find a job.

·      Departure Package: Intercultural training language training and pre visit trip.

 

ROLE IMPORTANCE contains 4 items and explained 3.500 %variance in the data. It is one of the work factors that play an important part in adjustment of expatriates. Role importance implies how critical expat’s assignment is to overall organizational success. Expats wants their role to be important in the present job profile which motivates them to work efficiently and satisfied as this may significantly impact expat’s perception of his assignment.

 

EXPAT ALLOWANCE contains 3 items and explained 3.332 %variance in the data. Major expat allowances are as follows i.e. The Travel, Health and accidental insurance cover, Housing allowance, Educational and travel allowances, relocation allowance. Most of the companies include allowances in expatriate packages and called as benefits of expat packages like housing, education, automobile, Home Travel, Hardship and other benefits include language courses and medical and health care facility etc.

 

PROMOTIONAL OPPORTUNITY AND SUPERVISION contains 2 items and explained 2.916 % variance in the data. The supervisor role is very important on the job as he is the only one who appraises the performance and provides guidance for future career path. It is said if your supervisor is good and supportive; the employee will be stress free and works efficiently and more satisfied with the job.

 

LOCAL BARRIERS, PEOPLE and LANGUAGE contains 3 items and explained 2.727% variance in the data and value of CronBach’s alpha is .412 < .6 for this factor which is less than .6, so this particular factor has been dropped. The culture and language plays an important part in Asian countries where the people are very strict about language and culture.

 

So, conclusively, the 8 IHRM factors namely Cross Culture Training, On JOB Support, Social Acceptance, Pre departure Training, Remuneration, Role Importance ,Expat Allowance and Promotional Opportunity and Supervision have been retained form the analysis of this study. These factors are consistent with the findings of other researchers studies of J. STEWART Black, MARK MENDENHALL and GARY ODDOU (1991), Earl Naumann (1993) , Meredith Downes, Anisya S. Thomas, Rodger B. Singley, (2002), Robert H. Sims, Mike Schraeder, (2005), Yongsun Paik, K. Praveen Parboteeah and Wonshul Shim (2007),Ching-Hsiang Liu Hung-Wen Lee, (2008), Ma. Evelina Ascalon Deidra J. Schleicher Marise Ph. Born, (2008)

 

Regression Analysis:

Further, Regression analysis is conducted on these 8 IHRM factors to understand their relative impact on the overall Expat Satisfaction. Regression Analysis provides us with the equation which describes a statistical relation between one or more predicted variable and response variable.

 

The table 5.3 indicates the value of R square = .540 and: the 8 major factors are used as predictors variables and the dependent variable is overall satisfaction. It shows there is significant relationship between predictors and the overall external satisfaction. And the Durbin Watson value=1.924.

 

 

Table 5.3 Model Summaryb

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Change Statistics

Durbin-Watson

R Square Change

F Change

df1

df2

Sig. F Change

1

.735a

.540

.520

.5261

.540

26.237

6

134

.000

1.924

a.       Predictors: (Constant), Promotional Oprtny andamp; Supervision , Pre-Departure Training, Role Importance, Expat Allowances, Social Acceptance, Expat Renumeration

b        Dependent Variable: overall external satisfaction

 

 

The results of the Regression analysis in Table no 5.4 performed on all the 8 major factors reveal that the significance value of 2 factors was insignificant. So, we reject the alternate hypotheses Ha1 andHa2 and accept the null hypothesis for H01 and H02 for factors Cross culture training and on job support. Two IHRM factors influencing the overall Satisfaction of the expats, namely, Cross cultural Training p=0.666, On Job Support, p=0 .248 are insignificant factors so they are rejected.

 

 

Table 5.4: Regression Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

T

Sig.

95.0% Confidence Interval for B

B

Std. Error

Beta

Lower Bound

Upper Bound

1

(Constant)

.543

.311

 

1.750

.083

-.071

1.158

Cross Cultural Training

.023

.052

.031

.432

.666

-.081

.126

On job support

.110

.095

.111

1.161

.248

-.077

.297

Social Acceptance

.148

.092

.132

1.612

.109

-.034

.331

Pre-Departure Training

.097

.084

.105

1.162

.247

-.068

.263

Expat Renumeration

.124

.072

.142

1.705

.091

-.020

.267

Expat Allowances

.231

.070

.254

3.288

.001

.092

.369

Role Importance

.088

.095

.074

.921

.359

-.101

.277

Promotional Oprtny andamp; Supervision

.104

.055

.134

1.871

.064

-.006

.213

a. Dependent Variable: overall external satisfaction

 

 

For a more robust analysis and clarifying the results once again, after eliminating the 2 factors, Regression analysis was carried out on 6 major factors; the results of which are shown in the table 5.5. Table 5.5 indicates that 5 major factors are significant factors, so the null hypotheses is rejected and the alternate hypothesis is accepted Ha3, Ha4, Ha5, Ha6 and Ha8 who’s significant value i.e. p value <.05 which are as follows Social Acceptance, Pre-departure Training, Expat remuneration, Expat allowances and Promotional Opportunity and Supervision. It means there is a significant relationship between the predictor variables and the dependent variable i.e. overall external satisfaction.

 

 

Table 5.5: Regression Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

T

Sig.

95.0% Confidence Interval for B

Collinearity Statistics

B

Std. Error

Beta

Lower Bound

Upper Bound

Tolerance

VIF

1

(Constant)

.582

.307

 

1.895

.060

-.025

1.190

 

 

Social Acceptance

.196

.085

.175

2.294

.023

.027

.364

.593

1.687

Pre-Departure Training

.154

.073

.166

2.111

.037

.010

.299

.552

1.812

Expat Remuneration

.129

.072

.148

1.801

.074

-.013

.271

.507

1.974

Expat Allowances

.229

.070

.252

3.264

.001

.090

.367

.575

1.740

Role Importance

.090

.092

.076

.981

.328

-.092

.272

.578

1.729

Promotional Oprtny andamp; Supervision 

.113

.055

.147

2.055

.042

.004

.222

.675

1.481

 

 

The linear model fit equation expressing the relationship between these 5 IHRM factors (Independent Variable) and the Overall Expat satisfaction (Dependent Variable) is expressed as follows:-

 

Final Linear Model Fit Equation

Overall satisfaction= .582 (constant) + .196 * Social acceptance + .154 * Pre departure Training + .129 * Expat Remuneration + .229 * Expat Allowance + .113 * Supervision and promotional opportunity.

 

 

The regression equation mentioned above indicates that OVERALL EXPAT SATISFACTION will increase if SOCIAL ACCEPTANCE is higher in host country, or if more emphasis is given on PRE DEPARTURE TRAINING in home country, or if higher EXPAT RENUMERATION and EXPAT ALLOWANCE is provided, or if higher SUPERVISION and PROMOTIONAL OPPORTUNITY exists in expat assignment.

 

The estimated increase in the OVERALL EXPAT SATISFACTION for every unit increase in these individual independent variables is given by coefficient values of these respective variables. That implies, if SOCIAL ACCEPTANCE is increased by 1 scale unit, then OVERALL EXPAT SATISFACTION is estimated to increase by 0.196, other independent variables remaining constant. Similarly if the level of PRE DEPARTURE TRAINING is increased by 1 scale unit, then OVERALL EXPAT SATISFACTION is estimated to increase by 0.154, other independent variables remaining constant.

6. MANAGERIAL IMPLICATIONS:

The main Implication of this research is identification of various factors that affect the expat satisfaction and then carefully identifying their impact on overall expat satisfaction. Out of these 10 factors the results shows that 8 major factors are significant for expat satisfaction. So HR of IT sector industries should keep these major aspects and factors in designing the policy for expats. The 8 major factors are as follows: CCT, On job support, Social Acceptance, Pre Departure Training, Expat Remuneration, Role Importance, Expat Allowance and Promotional Opportunity and Supervision.

 

The 5 major factors that came out as significant for expatriates are Social Acceptance, Pre Departure Training, Expat Remuneration, Expat Allowance and Promotional Opportunity and Supervision. This is consistent with the factors highlighted in the study of Liu, C.H. and Lee, H.W., (2008), and Moulik, S.R. and Mazumdar, S. (2012).  The former researchers had proposed that for ‘Job satisfaction’ –, family support, learning orientation, organizational socialization and cross-cultural training to be very important. HR managers should incorporate and focus on these factors for expatriates on international assignment. The paper recommends that the linear model fit equation will help HR managers to find out the overall satisfaction level of expatriates and work accordingly.

 

So, it can be recommended in this perspective that cross-cultural adjustments (including family adjustments) should be duly considered for the expatriates. Moreover, firms should be concerned with the meeting the Career Growth aspirations even in after repatriation. IHRM policies should give weightage to aspects, like Pre-assignment preparedness, of the expatriates Acculturation and Adjustment, Family Issues and Organizational Attitude towards Repatriation.

 

So, it is recommended that while designing IHRM policies, it is important consider host-country cost of living, housing, dependent education, tax implications and health care along with the pay differentials. Infact, Compensation is a major reason behind expatriation and so there are lots of expectations in this regard. This is consistent with the results of Yongsun Paik, Y., Parboteeah, K.P. and Shim, W. (2007) and Tornikoski, C. (2011). It can be recommended that one of the primary approaches to a good expatriate Compensation design should include destination-based considerations and address the risk associated with relocations, including the family cost of adjustments in a new culture.

 

It was found that significant factors ranked i.e. Remuneration, allowance, social acceptance and Pre-departure Training is more important. Hence, HR mangers should highly focus on these significant factors for male and female expatriates, so proper training facilities to employees and their families, visa interviews and air travel arrangements and at par remuneration will lead towards their satisfaction more.

 

It is further recommended from the observations of this study that HR managers should offer an equal opportunity to women also for expatriate assignments and they should be provided with proper Pre-departure training and Remuneration which should be at par with men. These findings are consistent with the research studies of Hutchings, K., French, E. and Hatcher, T. (2008), who examined an organizational and social network support for female expatriates and suggested that there are significant gender related differences. Shortland, S. (2009), also suggested that women’s low participation as expatriates was linked to gender stereotyping. The data showed that majority of people are married with children and married without children who are on expats roles.HR should have proper policies of allowances in place for expatriate and their families so that it covers their education health care and spouse adjustments also and Expat allowances is one of the factor came out from the study also. This is consistent with the research of Kelly P. Weeks, M., Weeks, K. and Muller, W., (2009) suggested that adolescents are effectively adjusted abroad that might lead to expatriates’ longer stay on assignment than planned and effective pre-departure training for all family members is important to expatriate success. Schoepp, K. and Forstenlechner, I. (2010), suggested that that the environment which has some stressors related to living abroad have been mitigated and family act as a motivation to stay longer on the assignment than to leave. It was found that region ratio is around 52:48. HR people of IT companies should pay attention to people moving in Asian region. To provide them with proper pre departure training, language training and cross culture training should be given to expatriates and their families so that they better adjust to the environment. It was found most of the expatriate are in young and middle age group people so HR should invest in their young talent pool through training and development and try to retain them.

 

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Received on 31.05.2017                Modified on 11.08.2017

Accepted on 28.09.2017            © A&V Publications All right reserved

Asian Journal of Management. 2018; 9(1):227-238.

DOI: 10.5958/2321-5763.2018.00035.5