expatriates, adjustment, cross cultural training, host country, culture, and research

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ACKNOWLEDGEMENT I would like to dedicate this work to my family whose unending support and guidance has been the reason for all my achievements and I express my deepest gratitude to them. I would also like to thank my friends have always been a great source of inspiration. I would like to sincerely thank my supervisor Dr. Tim Andrews for his patience and valuable guidance throughout the completion of this dissertation. My supervisor has given me the right suggestions to tone my skills and approach towards the dissertation. Finally, my sincere thanks to all the participants and respondents who helped me in my primary data collection. 1

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Expatriates, adjustment, cross cultural training, host country, culture, and research.

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ABSTRACT:

ACKNOWLEDGEMENT

I would like to dedicate this work to my family whose unending support and guidance has been the reason for all my achievements and I express my deepest gratitude to them. I would also like to thank my friends have always been a great source of inspiration.

I would like to sincerely thank my supervisor Dr. Tim Andrews for his patience and valuable guidance throughout the completion of this dissertation. My supervisor has given me the right suggestions to tone my skills and approach towards the dissertation. Finally, my sincere thanks to all the participants and respondents who helped me in my primary data collection. ABSTRACT:

There is a strong relationship between work related attitudes and culturally derived values which has been a tradition in cross- cultural research with the most notable work conducted by Hofstede (1980).The special cognition and behaviours that the workers develop are highly influenced by their deeply held cultural values .It is also explored through this research that situational variables like previous work experience, employees daily work experience, interaction with people of other cultures etc. have an influence on their work related attitudes. (Bennett, R.H (1999). Research was conducted on a sample of 15 Indian expatriates who have been working in the United Kingdom. Situational variables were shown to strongly influence the attitudes towards work. Suggestions for cross cultural training prior to arrival are also offered.

Numerous cases and examples of unsuccessful foreign assignments and experiences are mentioned in the literature review on expatriate management .The increase in the number of expatriate failures have raised concerns among researchers regarding the practices and methods followed by companies to retain their expatriates. (Tung, 1982; Landis and Bhagat, 1996). It therefore remains a challenge for MNCs to assure that the foreign assignments are successful and these assignments must provide adequate career opportunities. A lot of research has been done in order to identify the factors that cause failures. Expatriate failures due to adjustment problems also have serious impact on the overall productivity and performance of the firm. (Shaffer and Harrison, 1998; Selmer, 2001). Due to the fact that globalisation spreads rapidly around the world, companies are becoming more and more internationalised. This fact entitles employees at any level to sometimes work for a few years at foreign divisions, as expatriates. There are several advantages of staffing expatriates. However, there are many drawbacks and difficulties with expatriation and therefore companies should assist the expatriates in their new environments (Breiden, O 2002). Differences in national and individual cultures also require the expatriates to adjust to their work place. The literature review was framed with the research questions which further helped to realise what data has to be collected. The results derived can help to understand the issues faced by Indian expatriates due to work adjustment problems and can help in formulating appropriate strategies to further help the Indian expatriates and other human resource professionals and international sojourners to cope up with culture shock and expatriate adjustment. Keywords: Expatriates, adjustment, cross cultural training, host country, culture, and research. TABLE OF CONTENTS

ACKNOWLEDGEMENT 1ABSTRACT .2TABLE OF CONTENTS. 4LIST OF APPENDICES.. 6

LIST OF FIGURES.. 6LIST OF TABLES 6LIST OF CHARTS 6

CHAPTER 1: INTRODUCTION 71.1. Background 71.2. Expatriation 91.3. Purpose of Research 101.4. Objective of Study 101.5. Proposed Methodology 111.6. Outline of Subsequent Chapters.. 11CHAPTER 2: LITERATURE REVIEW .132.1. Culture 142.2. International Work Assignments and Expatriation 152.3. Expatriate Adjustment. .162.4. Diversity in United Kingdom.. .182.5. Culture Context-India vs. UK . 192.6. India Business Culture.. 202.7. UK Business Culture.. .. 242.8. Determinants of Cultural Differences.262.9. Differences in People and Practices across cultures ...282.10. Expatriate Culture Shock.. ..312.11. Potential Challenges Faced by Indian employees in UK.. .. 352.12. Defining Expatriate Competencies ...382.13. Building Cultural Understanding and Awareness 392.14. Meeting Cultural Challenges. .402.15. Outbound Assignments.. 422.16. Cultural issues faced by Indians in UK. 442.17. The need for research: A summary.. 48 CHAPTER 3: RESEARCH METHODOLOGY 503.1. Introduction 503.2. Research Aims .503.3. Research Approach. 523.4. Research Strategy 543.5. Research methods.. 553.6. Research Design. 563.7. Data Collection..593.8. Data Analysis.. .613.9. Methodological limitations to the study. .61CHAPTER 4: FINDINGS AND ANALYSIS. .634.1. Introduction. 634.2. Demographic Factors . 634.3. Factors of Adjustment .684.4. Summary of Findings .82CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 84CHAPTER 6: IMPLICATIONS AND LIMITATIONS 88REFERENCES 92LIST OF APPENDICESAPPENDIX A: Definition of Terms 102APPENDIX B: Questionnaire 103APPENDIX C: The process of expatriation - the cultural issues: A model for Analysis 107APPENDIX D: Ethnicity and Identity: Population in UK...108

APENDIX E: Consent Form 110LIST OF FIGURES

FIGURE 1: The Purpose of Expatriation 14FIGURE II: Emerging cultural Profiles 29FIGURE III: The U-Curve of Cross Cultural Adjustment 34FIGURE 1V: A conceptual Framework. 51FIGURE V: Forms of Primary research methods. 54FIGURE VI: The research process onion .55LIST OF TABLESTABLE I: Hofstedes cultural dimensions of India and UK.27TABLE II: Background to the Interviewees 58TABLE 1II: Descriptive Statistics of Respondents Demographic Factors .. .67TABLE IV: Descriptive Statistics of Expatriates Cultural Adjustment Stage......74LIST OF CHARTSCHART I: Respondents Age Ratio . . .64CHART II: English Fluency Analysis .. ..65CHART III: Situational Factors.66CHART IV: Cross cultural Training Analysis . ..71CHART V: Percentage of Racism among expats 73CHAPTER 1INTRODUCTIONThe following chapter will provide the reader with some background information on the subject of expatriation and why it is considered as an important aspect of international companies and firms/organisations employing employees from other cultures and backgrounds. The problem discussion will then bring up significant factors regarding expatriation, which will lead to the purpose of the research and the research questions for the thesis.

1.1 Background:

UK has been one of the most favourite destinations for Indians for the last decade. Indians have been pouring into this country for purposes of education, employment, short term assignments etc. A large number of students come to this country every year and eventually stay back and prefer to work here for some time (say 2 to 3 years or more) and many even plan to settle here. This has resulted in a large number of Indians being employed in British Organisations. (Edstrom, D and Jervfors, P 2007)

The trade relations between India and the UK have been growing since 1991. In Britain, Indian companies are the 2nd largest investors and fourth largest partners in trading. More than 500 companies of Indian origin, mainly information technology industries have invested and have many offices in Britain. Since the liberalisation started in the year 1991, India has become Britains third largest investor. The Confederation of Indian Industries (CII) has listed that there are many hurdles while moving the Indian executives and professionals to the United Kingdom in relation to the visa procedures. The visa rules in the UK are not conducive to free movement of professionals,

An increase in globalization is generating many opportunities for Indian companies to expand overseas. Many booming and developing industries in India like the information technology sector, telecommunications and Business Process Outsourcing are heavily dependant on these foreign markets. Subsequently this has increased the need for workers/employees working in diverse cultural environments. In the recent times number of cross-border mergers and acquisitions has increased significantly. The massive size of many cross border deals worth Millions of dollars (for example acquisition of Tetley, United Kingdom) indicates the global aspirations of the Indian organisations. This globalization trend is presenting a challenge to the Indian organizations- i.e. to develop proficient employees who would be competent enough and have the ability to work efficiently in multi-cultural settings and who will also be an important link between the home company and its subsidiaries. Further globalization has resulted in recruiting employees with different languages, cultures and origin adding complexities to the firms and the organisational culture. With differences in beliefs, norms, values, manners and etiquette there is plenty of room for misunderstandings and poor communication. Hence, the firms should develop processes and procedures in order to enable and train employees and managers on foreign assignments to handle cultural diversity. In order to help employees to cope up with the stress and cultural shock while dealing with a new culture they should be provided with the necessary cross-cultural training. Hence cross cultural training is essential for both employees and expatriates who are going to deal with employees of other cultures and origins. Even for Indian Companies getting into the BPO sector, cross-cultural training is essential as their clients may be from distinct cultural settings. It has become of vital importance for aspiring managers to Work effectively in cross-cultural environments (Harris and Kumar, 2000). This research proposal attempts to define the possible cross-cultural differences faced by the Indian Expatriates(which may include Indian Employees as well) working in the UK who come from different industry and company backgrounds, its effect on the business, skills required by the employees, the importance of pre-departure and post-arrival cross cultural training etc.,.

1.2 Expatriation:Expatriation has been a means of organisational control for centuries. Politically, in the early phases of civilisation, ancient Roman created a mechanism which sent trusted representatives to manage distant subsidiaries, bringing different effects to success and failure in the overseas colonisation. This situation is also similar in the business field. The effective performance of expatriates has been regarded as decisive to business success and poor performance of expatriates has been co-related positively with business failure (Hoeckilin, 1995; Barber and Pittaway, 2000). For industry and commerce, expatriation was not a consideration until the aftermath of World War II. With the prosperity of international business and the rise of MNCs, expatriation became to a certain extent, an ideal option to manage overseas.

1.3 Purpose of the research:

This research is an exploratory research and the primary purpose of the present research is to analyse the occurrence of culture shock and to study some of the common cultural issues faced by the population of Indian expatriates working in the United Kingdom. This study will also compare the British and the Indian culture in detail by analysing the data collected from the fieldwork. The two cultures would be compared using the four dimensions of Hofstedes i.e., masculinity vs. Feminity, power distance, uncertainty avoidance and Collectivism vs. Individualism.

1.4 Objective of the study

To gain knowledge about culture, culture shock, expatriation and problems faced by Indian Expatriates.

To develop a wide knowledge base about literature relating to cultural issues. To study the cross cultural issues faced by employees due to different country and organisation cultures, different company and employee beliefs

To analyse how they cope up with the change, cultural shock and their transition to normalcy.

In short the objective is:

What are the cultural issues faced by Indian Expatriates in the United Kingdom and what are the various factors affecting expatriate adjustment?

The objectives will be achieved using primary data collection (through telephone interviews and questionnaires). The research outcome will contribute to further recommendations and suggestions.

1.5 PROPOSED METHODOLOGY

Only through a primary and secondary data collection, the results of this project could be achieved. In order to obtain and explore the necessary information and data relating to this research numerous case studies, online resources, articles, past research articles, books etc were used as a source. However such information may or may not be enough to actually derive to a final conclusion due to the unique nature of this topic. Moreover the limitation of the secondary research makes it necessary to carry out a primary research. A detailed explanation of the two types of methodologies used in this study is given in the Methodology part in this project.

1.6 OUTLINE OF SUBSEQUENT CHAPTERS:There are six chapters in this study:

CHAPTER 1: INTRODUCTION:

In this chapter the research topic is introduced. This chapter also discusses the background of the study, objectives of study and purpose of research. CHAPTER 2: LITERATURE REVIEW:

This chapter presents existing theories in this area of research which then helped to apply the most appropriate theory for this area of research.

CHAPTER 3: RESEARCH METHODOLOGY: This chapter discusses about the primary and secondary research. It also discusses about their implementation and various limitations and problems to the research. It also provides an overview of data analysis .This chapter analyses the data accumulated from quantitative research and provides the presentation of results using various graphs and tables.

CHAPTER 4: FINIDNGS AND ANALYSIS:This chapter concludes the research by answering the questions and achieving the aims and objectives o the research.

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS:This chapter provides the logical arguments and recommendations made after achieving the research objectives. CHAPTER 6: IMPLICATIONS AND LIMITATIONS OF THE RESEARCH

This chapter discusses the future practices that can be applied for the research and what can be done better to enhance the adjustment of Indian expatriates and studies the practical limitations faced while conducting the research. CHAPTER-2

LITERATURE REVIEW

The term expatriation represents a complicated procedure both before and after the assignment. This chapter strives to study expatriation which is broken into several stages. Here, the ample literature concerning expatriation will be divided into several sub topics to serve the discussion. Many experts in International Human resource Management have already brought up the importance of managing expatriation through the whole process instead of viewing it as single event (Napier and Peterson, 1991; Chen, 1995; Chang, 1996; Evans et. al., 2002). Making an expatriate assignment into a success for individual, the family, and the firm requires paying attention to many factors from the time of initial selection until repatriation. Before going any further this chapter will consider some background information on culture and expatriate adjustment. Edstrom and Galbraith (1977) proposed that expatriates are dispatched abroad for three reasons that sometime overlap. The first (demand driven) is simply to fill positions that cannot be staffed locally because of a lack of technical or managerial skills. The second reason (learning driven) is to support managerial development, enabling high potential individuals to acquire international experience. The third reason is organisational development, referring to the control and co-ordination and informal networks. MNCs rarely deploy for a single reason; the intention of applying it in their international management is usually incurred for more than one reason, or more often, a combination of the above three. Figure I combine the length and purpose of the assignment together into a framework for understanding the nature of expatriate role.

CORPORATE AGENCY

(Control/Knowledge Transfer)COMPETENCE DEVELOPMENT

PROBLEM SOLVINGCAREER ENHANCEMENT

LongASSIGNMENT

DURATION

Short

Demand driven Learning driven

ASSIGNMENT PURPOSE

Figure I: The Purpose of Expatriation

Source: Evans et. al., (2002)

2.1 Culture:

Culture is the commonly held and relatively stable beliefs, attitudes and values that exist within the organisation Williams et al (1993)What is culture? Hofstedes research states that culture is regarded as the collective programming of the mind which determines attitudes, values and behaviour. (Hofstede 1980). Children are given the best advice by their teachers and parents so that they can to prepare them for successful interactions in their own society and culture, where right and wrong, good and bad, abnormal and normal are clearly stated. It is quite unfortunate in a sense that children are given a different set of instructions by each cultural group, each equally important in their own environment. These learned regional and /or national concepts eventually become our core beliefs as we grow up and which is almost impossible for us to discard. We regard others beliefs and habits (Russian, Chinese, French...) as strange or unusual, mainly because they are unlike our own. There is no doubt about it- Japanese are not like American.

In general, however, our national or regional culture imposes itself on our behaviour rather than the other way round and we find that the closer we stick to the rules of our society, the more accepted we become (Lewis, R.D 2006). Consequently these differences also have reflective effects on the businesses and as a result limit the extent to which managerial procedures and theories could be applied in general across the boundaries.2.2 International Work Assignments and Expatriation: An Introduction

Due to a steady increase in the number of FDIs and cross border trade between economic regions, international organisations are challenged to promote, co-ordinate and effectively manage their international units abroad. As a result the selection , recruitment and preparation of international managers to face the challenges of the international world and demands of local markets has become vital (Tung and Miller, 1990; Schneider and Tung, 2001). Many studies and investigations have been done to determine the size of expatriate population, but not much research has been done on the worldwide trends in international human resource transfers. It has been observed that a total of 65,000 expatriates on short term projects and assignments have been employed in European organisations and firms are also striving for closer European Business integration and are increasing traditional and permanent transfers at the same time (Simpson, 1999). Clearly, in international firms there has been a desire to develop and promote international management skills. These international firms should take advantage of these growing opportunities and must have the skills to motivate and attract suitable "with the right blend of skills, personality and languages to take on new markets as they arise. Much care has to be taken in order to mange the expatriates due to the risk of costs which are incurred on cross border assignments and the latent threat of failure and premature return (Tung, 1987; Black, Mendenhall and Oddou, 1991; Landis and Bhagat, 1996). Consequently, researcher are now examining the success factors that will contribute to the adjustment of these international assignees. 2.3 . Expatriate adjustment:

An important area of concern in this research is expatriate adjustment. This is important as it measures the degree to which expatriates adjust themselves to the local work environment and establish relationships with the local community and staff. This not only impacts the overall productivity, good relations with local staff, long term customer relations but also raises questions regarding the effectiveness of pre-departure preparation packages but also the cross cultural training provided. It seems clear that the effectiveness of expatriates, also known as foreign assignees (Ronen, 1989), is highly dependent on their adjustment to their new work surroundings, the different culture and the new way of life to which they are exposed. Expatriate mangers are usually hired with employment contracts of usually two years of length. They are mostly selected based on technical criteria and the cultural adaptability is given very little attention. Most of these employees and expatriates are third country nationals. Expatriates are mostly hired as this provides the company with a pool of highly qualified applicants. Indeed, literature from the last two decades concerning expatriation highlights two alarming facts. First, the cost of sending expatriates and their families abroad is high. Second, the rate of expatriate failure is similarly high (McKenna, E and Beech, N. (2007). The last point is evident in the large number of expatriates who fail to make a successful transition to their new environment and return home before their mission is completed (Mendenhall and Oddou, 1985; Ronen, 1989; Tung, 1982). It is for these reasons that research on expatriation practices and expatriate adjustment flourished during the 1980s and 1990s.

Tung (1982) states that the cultural differences are one of the most important factors responsible for the failure of foreign assignments. Despite the increased contacts between India and the United Kingdom differences still exist in many business sectors and are believed to be culture based. UK is a current and potential market for International business firms. However UK is a challenging destination for the Indians Expatriates and employees and is distinctly different from India. Their need for effective cross-cultural skills appears to be substantial, as they have to adjust to a fundamentally different cultural and social context than their own. In this chapter the existing research done by authors on expatriates and the perceptions and challenges faced by Indians in UK and the tension between the expatriates and the local staff is studied and also reflects some of the issues faced by British firms who continue to employ Indians inspite of having sufficient local talent (Hailey, J (1994)). Expatriation in UK is not a new phenomenon. In order to survive living and working in a new country (in this case UK) which offers a different set of experiences and lifestyle, the employees must be mentally prepared to face challenges and make the adjustments which are needed. These cross cultural changes encountered during the transitions may appear to be depressing, frustrating and stressful and these adjustments consume money, effort and time. Moreover the employees should be patient and interested to adapt to the changes. Many employees also feel that these challenges also have a big influence on the decision to continue working in the host company and country. 2.4 Diversity in United KingdomUK has become much more diverse compared to the past years. For many years the British multicultural policies have been centred mainly on the African and Asian communities. These two communities mainly constituted the immigrants in Britain. But according to the present statistics it is noted that when compares to the immigrants between 1950s and 1970s and between 1991 and 2001, we find that in the latter years migrants in UK came from a wide range of countries. The current immigrant diversity is much more complicated than the past- we can call it super diversity in fact.

Ethnicity, religion and language are a few important factors that determine how immigrants interact with people in this country and how they organise and identify themselves. Languages, ethnicity, origin and religions are not the only immigrant characteristics that have an effect on the integration and socialization process. There are many more factors. (Vertovec, S 2005)Lets say for instance, in recent times immigrants have come to this country through many different channels and for different purposes when compared to the past. The kind of work they do, the public services and the types of housing they use largely depends on an immigrants legal status and migration channel. The people who migrate into Britain are highly skilled and consist of entrepreneurs from the business, computing and finance field. The peoples plans on how long they wish to stay in the country also depend on the immigration patterns and rules, social interaction and legal status. Some of them may wish to stay for a short time, some a little longer and many may wish to settle permanently. 2.5. Culture context- India versus UK The British Rule left both a social and cultural influence on many Indians. Commonalities with British include cricket, tea, army traditions, a democratic constitution, early industrialism, and the English language as a carrier of administration and culture and a legalised system (Lewis, R.D (2006).

Indians have a special and unique culture that varies considerably from those of East Asia. Their communicative style is more loquacious than the Chinese, Japanese and the Korean, and they are dialogue-oriented than most Latins. Essentially multi-active they have created a society where privacy is rarely indulged in and even more rarely sought. They make little attempt to conceal their feelings.

2.6 Indian business cultureGeert Hofstedes study about India portrays India is a country with a large power distance culture/ society. This large power distance in India indicates a high level of inequality of distribution of wealth and power within the society. Between the values of men and women there is a huge gap. Women are expected to wear conservative dresses. Uncertainty Avoidance is Indias lowest ranking Dimension. This ranking indicates that the culture may be more open to unstructured situations and ideas.

Even before business is discussed, Indians will generally take a great deal of time than the British to meet and develop relationships with the employees at all levels. This kind of an approach may cause conflict as the Brits normally expect things to be done quickly right from the start of the deal. Indians always believe that there is a reason for everything that happens this is still obvious in the decision making and negotiating process. This may also influence the time concept in India where negotiations are never rushed and as a result the business discussions may consume more time. In India people believe less in the concept of personal space and there is an obvious lack of privacy. Developing interpersonal relationships, avoiding conflict and an indirect approach to communication are of significant importance in Indian business practises. (Fehir, S 2006) Indian Working practices Punctuality is well appreciated by Indians but they generally not reciprocated. A flexible schedule will prove useful.

In the Indian Culture and work environment decisions are often made slowly and are normally a thoughtful process in the Indian culture. Rushing deadlines is seen as rude, aggressive and disgraceful.

Structure and hierarchy in Indian companies In the Indian system of hierarchy in the work place, elders and especially senior colleagues respected and obeyed. Most of the time discussions are lead by the senior most people.

The highest ranking and senior people normally take the final decision; hence it is essential to sustain strong relationships with superior employees and executives in the businesses in India.

Working relationships in India It is the responsibility of the higher ranking management to look after, monitor and check their subordinates.

Indian businesses criticism must be done carefully as self esteem is very important to them and they are very sensitive. Business practices in India

A friendly small talk will generally be carried out before the start of meetings in India. This conversation may include questions of personal nature (mostly about family and their life) and is seen as a technique of developing trust and rapport (Suroor, H 2008).

In order to establish successful business relationships in India, the family values are important and therefore showing that you are interested and giving respect towards the Indian counterparts family is very important.

The word no is rarely used in a direct manner and Culture disagreement in India is avoided and rarely expressed and is replaced by other indirect forms of communication and non-verbal cues. Cultural concepts and factors in Communication

Leadership and Status;

Working on time and by the clock is not a common trait among the Indians; however, work ethic in the Indian commerce is quite strong and visible, especially when people are working in their own or family business. There is an easy acceptance of foreigner in business dealings; Indians do not fear foreigners-many invasions have brought familiarity. They are however suspicious of the iniquity that the foreigners may bring with them (perhaps a certain fear of division and subsequent loss of national identity. Nepotism is a way of life in traditional Indian companies. Family members hold key positions and work in close unison.

Communication Pattern:

Indian English is old fashioned, flowery and verbose. It is essentially a human, sympathetic language showing respect and often humility to the listener. They praise generally yet are hesitant to criticise, since failure in Indian business may quickly be attributed to bad karma. The language of the Indian manger emphasises the collective nature of the task and challenge.

Behaviours at meetings and negotiations;

Indians remain polite while modifications are proposed, and repackage energetically to reach an agreement. They hate turning down any business. As far as negotiating style is concerned, the Indians have a few superiors. Although highly collective in their local group, they develop individuality and brilliance when dealing on their own with outsiders.

Manners and taboos:

Hinduism dominates Indians social behaviour, with the associated taboos. Women show great deference to men. Dress is opulent, often ostentatious.

How to empathize with Indians

Indians tend to complain openly about the injustices of the colonial period. If treated with respect they quickly put the past behind them, especially when good business in the offing. Indians emanate and expect warmth, respect and proneness. Do not risk of joking with them they tend to take things seriously. Be flexible at all times. But we must accept that there is a lot of chaos and also keep in mind that they manage it better than you do. Learn to cope with the Indian bureaucracy, which can be slow and tedious. They maintain multiple channels of communication, both with government and commercial entities. In India oral agreements are weightier than documents.

2.7 UK business culture UK has an increasingly diverse and multi-cultural work force unlike India. UK business culture is very different from the Indian Culture. Let us consider punctuality. UK is clock conscious. Time is valued like money and being late for an appointment or work is the considered unprofessional and you will be regarded as being highly unmannered. However, this is not true in India. Not going in time for an appointment or work is acceptable and would not have harmful repercussions. The work environment in the United Kingdom is a reasonably informal and relaxed one.

Business meetings in Britain include criticising, brainstorming and gaining consensus. In India however, the above mentioned is quite uncommon. Decisions are mostly conveyed then made in meetings and challenging and criticising the ideas of seniors and co-workers would be not be acceptable and would result in the loss of honour and face. An Indian in UK would be mis understood if he arrives late constantly for appointments and meetings and doesnt contribute as a part of it.

In UK the boss provides constant motivation and support and acts as a coach. In The United Kingdom people prefer to be addressed with their names where as in India it is rude to call people elder to you with names. A person working in a higher level would expect you to call him sir at all times (even if a younger person is working in a higher post than you, he would expect the same).The individuals are responsible and accounted for any errors or wrong implementation and team work is given a lot o importance. The Brits respect personal space and dont prefer to answer personal questions.

One of the major causes of cross cultural conflict between the two is the accent. The Indian accent of English is completely different than the English. Most of the Indians speak slowly and tend to make a lot of grammatical mistakes. (Jodie R. and Gorrill, M.A 2007). Many times what the either try to convey to each other might be totally mis-understood or mis-interpreted and this leads to confusions, delays and taking wrong decisions.

From the above descriptions (Culture context of India and UK) we see how different the two cultures are.

2.8. Determinants of cultural differences:

The work of Geert Hofstede is one of the most influential research works with relation to National Cultures (1980; 2001).In the field of intercultural management Hofstedes study is often used by practitioners and researchers. Hofstedes study differentiated and defined various cultural dimensions they are; power distance, masculinity vs. feminity, individualism vs. collectivism , avoidance of uncertainty, and long vs. short term orientation. The author has classified a number of countries on these dimensions. These can be defined as:

1. Power distance: This is the level of inequality in power between a more powerful and less powerful individual of the same society. In organisational terms this relates to the centralisation of authority and the degree of autocratic leadership. Societies with high power distance are those where the superior is seen to be more powerful than the subordinates. In contrast low power distance societies favour a more democratic style of management and flatter organisational structures. 2. Uncertainty avoidance: is the extent to which societies feel threatened and uncertain and the degree to which they try to avoid uncertain situations. Countries with high uncertainty avoidance, organisations adopt stability and high bureaucracies and generally dis-courage activities that are risky. On the other hand societies with low uncertainty avoidance will encourage flexibility and adopt more diverse views.

3. Masculinity vs. feminism: According to Hofstede gender roles are more firmly defined in masculine societies unlike feminine societies. Masculinity measure the extent to which male values in Hofstedes term dominant values are aggressiveness, ego, assertiveness, career oriented and not caring etc.

4. Collectivism vs. Individualism: It is the extent to which the employees are believed to look after and take care of themselves or stay incorporated into groups. Where individualism is high-for example in the USA-people are expected to take care of themselves and their immediate family only. In Japan however, which is a collectivist society people are integrated into strong groups, which throughout peoples lifetimes continue to protect them in exchange of unquestioning loyalty. Whereas in individual societies the individuals are keener to achieve self-respect and a strong hold, in collectivist societies, the aim is on fitting in harmoniously. Hofstedes cultural dimensionsPower DistanceUncertainty AvoidanceMasculinity vs. FeminismIndividualism vs. collectivism

Great BritainLowLowLow-MasculinityHigh-individualism

Low-collectivism

IndiaHighLowHigh-MasculinityLow-individualism

High-collectivism

Table I: Hofstedes cultural dimensions of India and UK These differences in culture may affect organisational design and structure, collectivism and motivational factors at the work place etc. Paradoxes and perceptions have been linked with the cultural differences (Osland and Bird (2000)). Cultural myopia (perceptual schemas) and a lack of experience create these paradoxes and theoretical limitations which present biased views of the cultures. The tendency for observers to misunderstand role differences, cultural values, group and individual values are reasons for misunderstandings. The trainers and employees who receive the training should keep in mind the differences in business practises and the varying approaches.

2.9. Differences in people and practises across cultures:The way people react to a stimulus depends largely on the differences in cultures. Managers and executives have different motivational needs depending on their respective culture. The Indian Expatriates/employees have to understand the fundamental differences in the behaviour of the employees as the factors of motivation that might be used in India might not work in the United Kingdom (Amble, B 2006). The manufacturing procedures and operations of companies may be similar across their subsidiaries but the behaviour and culture of the employees in these subsidiaries might not be the same. (Mayfield, Mayfield, Martin, Herbig, 1997)

Figure II: Emerging cultural Profiles

Source: Hofstede, G (1991).

The topic of cross culture is gaining significant importance in the recent times along with business values and practices. The cross-cultural differences can be measured using the basic four dimensions of power distance, time conception, the context of communication and individualism vs. collectivism. In this context of cross border businesses the time factor is very important as people have different perceptions and perspectives related to time as they come from different countries and cultures. For Example in USA employees prefer to commence and end the meeting on the right time, while in many countries for example India people may just take their own time. (Mayfield, Mayfield, Martin and Herbig, 1997). Time also has an impact on the relationship dynamics of negotiations i.e. People might like to establish new relationships during meetings in a collectivist culture where as in an individualistic culture people may not want to bring in the relationship aspect in their meetings. (Example USA).Employees from the collectivist cultures would indulge more or give more time on positioning and non-task negotiating activities (Gulbrow and Herbig (1999) and negotiators from the high power distance societies spend minimal time on compromising and people coming from a masculine culture were observed to engage into less persuasion. According to George, Jones and Gonzalez (1998) the differences which may affect the employees emotions are classified into three different categories of differences which include: cross-cultural differences (expressions of Emotions , different linguistic styles, Internalized cultural norms and values) individual differences which include previous experiences in cross-cultural negotiations and finally the contextual differences which comprise of (the degree of trust between the negotiators and the relationship between the employees ). Emotions are expressed differently in different cultures for example the hand gestures and the facial expressions may convey a different meaning in one culture and a different in the other culture. The analysis by Weber and Hsee (1998) also states that considerable differences are evident even in the way risk is perceived by people of different cultures and which may be of significant importance during business negotiations across borders.

2.10 Expatriate culture shockCulture shock is one of the most complex and unique transition we face when we move across a country or to other parts of the world. Feeling out of place, confusion, anxiety, stress are a few of the symptoms of culture shock. It ultimately changes the way we think about others and ourselves and the way it affects our emotions and our interactions with others (Kotter, J.P and Hesketh, JL (1992). A sudden change in everything around including the processes and peers makes the employee feel lonely and develops a dislike towards the new work environment and the culture of the organization, which is quite natural. As a result the employees react by comparing their own beliefs and values to the new culture and are mostly not able to accept the change between both. Culture shock often results in conflicts with co-workers, slow career development, low self confidence and job satisfaction and lesser return on investment for the firm and for the employee. Symptoms of culture shock are homesickness, boredom, lethargy, irritability and hostility to the host culture (Jassawalla, A., Truglia, C., and Garvey, J (2004). Companies, both national and international have now realised that a cultural clash can and does have a vast affect on the success of the business. Ethnocentricity also seems to cause cross-cultural conflict.

When the employees experience culture shock, it may also result in the pre-mature return of the employee manager to the home country before the period of assignment is completed. A high percentage of the employee/expatriate failures are related to the inability to adjust in new cultures. Failed assignments can result in huge losses, unsatisfied customers and lost contracts which may result in conflicts with family, unclear goals, feelings of failure etc. The most common reasons for assignment failure are lack of adjustment, inability of spouse to adjust, national differences, dual career issues, mis-communication personal and emotional problems, and language barriers. Tung (1998) carried out a study on 409 expatriates assigned to 50 countries in which it was noted that most of the employees took around 6 to 12 months to adjust to the new cultural setting. Studies have found that between 16 and 40% of all employee managers end their foreign assignments early because of their poor performance or their inability to adjust to foreign environment (Black, 1988).The previous literature on cross culture in international companies states that incongruity or strangeness between the values of expatriate managers and employees and the host country managers/workers has caused the latter to be paranoid sometimes. Failure to adjust results in higher employment expenses, poor productivity and performance. (Badar et al., 1982) Research carried out over the past 16 months by the Chartered Management Institute (CMI) has revealed that more than six out of 10 managers believe their organisation's culture has an impact on decision-making. Three aspects of adjustments have been identified by Aycan (1997) namely socio-cultural, psychological and work adjustments. CCT helps to prepare the employees to be able to manage these changes. The goal of cross culture training (CCT) is to reduce culture shock when on foreign operation and to improve the managers cross cultural experience (Caliguiri (2000)). Therefore it is important to provide cross-cultural training to the expats before, during and after foreign assignments, develop and train employee families and develop the headquarters staff responsible for planning, organisation and control of overseas operations. (Pande, A 2006)Firms are mostly blamed for the poor performance of the employees. Firms are blamed by scholars for;

Firms Select employees mainly based on their technical experience and skills while neglecting issues of adjusting nature, personality etc;

Pre-departure training that is poor and very rarely focussed on the importance of interacting with people of other cultures while focused often on cultural figures and facts. (Sanchez et al., 2000):It is ideal for an employee/expatriate to possess the following personal characteristics: (1) having empathy for others; (2) being culturally sensitive (3) willing to accept intercultural experiences and challenges; and (4) being culturally prepared for the assignment.

Culture shock and associated stress: (Dealing with a different culture)

The differences in culture lead to cultural shock, which is-a state of mental stress caused by minute and delicate changes in the culture (McEnery and DesHarnais, 1990). This process of accepting and adapting to the new changes (Nicola, 1993) or the acculturation process in other words can be categorised in 4 stages. They are: The honeymoon or Initial stage. The culture shock or depression stage.

The stage of Gradual improvement or adaptation and adjustment.

The Final Mastery stage

Figure III: The U-Curve of Cross Cultural AdjustmentSource: Pires, G., Stanton, J. and Ostenfield, S (2006). Caligiuri (2001) classifies the four acculturation stages: Stage I- the honeymoon or initial stage; Stage II- the culture shock or disillusionment stage; Stage III, the gradual improvement stage and finally Stage IV- the final mastery stage. The initial stage is a phase which lasts no more than two months. In this stage the new experience causes excitement to the expatriate. In the disillusionment stage the employee copes seriously with adjusting and adapting on a daily basis to living in the new cultural environment. In this stage a lack of knowledge of the culture makes the individual aware of what is right and what is wrong or unacceptable and these differences in the new cultural environment results in frustration, uncertainty, depression and nervousness. The depressions and disappointment occurs as the individual starts to recognize that his past behaviours are unacceptable in the host culture but he has not yet learned which type of behaviour is appropriate or suitable. The third stage of adaptation is characterized by an increased capacity to familiarize yourself with the new culture and environment and in the final stage the anxiety is gone and the adjustment is about as complete as possible. The reactions to a different culture are grouped in three categories which are adaptation, flight and fight (Rhinesmith (1970). Under the flight category, reactions of withdrawing from opportunities of interaction and rejecting the new people situations and culture cause discomfort to the employee/expatriate. In the Fight stage the employees approach the new culture with hostility and the in adaptation stage people actually carry out the practice of accepting the cultural differences and adjusting to the new environment. 2.11 Potential Challenges faced by Indian Employees in UK :

The Indian Community constitutes about 2% of UKs population and has well assimilated into the British culture and are in their third generation. Indians are very professional, have achieved high in education and have low crime rates There are more than 200 temples and over four hundred Indian Organizations in the United Kingdom. The Indian Community in UK have also set up many learning and teaching centres and also centres which promote the Hindu religion and culture.

There are a number of potential challenges faced by Indians in this UK, the major one being identity (Morris, N 2008). This is because even today most of the Indians are labelled as Asians by the media- the term referring to anyone who belongs to India. This issue has had many negative impacts on the Indians in the UK.

For Example:

In the year 2001, there way riots between the Pakistanis and the whites in Northern England. The media described this incident as riots between the whites and the Asians. These generalizations have had many negative impacts and hence the term Asian has now been rejected by many Indians. (Shah, D 2008)Negative stereotypes: Many Indian employees in the UK have said that negative stereotypes help by their co-workers against them is a major cause of conflict between the two. One manager cited that employee Indians are viewed as gringos (who) come in and stay for two to three years, fill their pockets, and leave. Indian employees have also stated problems as they feel they are prevalent in the UK and that the host country perceives them as the exploiter of the local people and who dont invest in their local community.

Ethical Dilemmas: In other words Indian employees feel that there are too many laws which are unclear and almost any action which is taken by the host organization and Indian would be considered as the disobedience of the law.

Different value systems: Another cause of conflict could be the differences in value systems. In India bribes are paid to the officials and government people to get things done quickly without any hassles. When they are assigned in UK they must be careful not to offer bribes to anyone as this might result in serious action being taken against them.

Different perceptions of urgency, time and implementation : Another major cause of stress and conflict that can be recounted as a problem is the difference is work ethic. Many examples of cultural differences relating to time and urgency have been cited by the Indian employees which they have experienced during their overseas assignments. For Example they have cited that the UK mangers are:

(1) Without much worry and regard about the hours they devote to work, the UK managers always work towards finishing the project on time (very good at working towards deadlines).

(2)The British employees would start and wok until late if they have to complete a project. A British Manager notes that the Indians describe the British as work driven and ambitious and that Indians like to devote more time to their family and social life.

Different business practices Indians have a different style of conducting meetings which are generally unstructured and comprises of open discussions. The power distance dimension (Hofstede, 2001) plays a vital role in the conduct in meetings.

2.12 Defining Expatriate Competencies

The same sets of functions have to be performed by the expats even in the new environment and this causes a lot of depression and stress. This stress has a huge impact on their work. Lack of adjustment in the new culture is a major reason or the expatriate failure. Human Resource professionals should also keep in mind that soft skills like the ability to adapt, be patient towards the new culture and have the capacity to develop interpersonal relationships are very important to define the expatriate competencies. (Hofstede, 2001) stated that skills required for successful cross cultural adjustment are as follows:

Should have a flexible attitude

Must have a non-judgemental attitude

Should show empathy

The ability to communicate respect

Must be able to tolerate ambiguity

Emotional maturity and soft skills are imports skills which the expatriates must possess. The expatriates should also possess the ability to understand the context of the conversations and meetings without bringing in their own biases and perceptions. A combination of three different dimensions are required to be culturally competent (Black and Mendenhall, 1990), they are: the relationship dimension (ability to develop relationships with host country nationals), self-maintenance dimension (self esteem and confidence, reduction of stress and psychological comfort), and finally the perceptual dimension (the expats perception about the social system and culture). Perceptions thus play an important role in defining competencies. Perceptions lead to stereotyping and cause wrong notions about the host culture (Pande, A 2006). Employees shouldnt judge and form opinions about the host culture before they spend some amount of time overseas. Cultural values, social and political systems are the events which form a strong background and changes the perceptions of the employees. The expatriates must be able to work in ambiguous and unstructured situations and also have the ability to decode non verbal and verbal forms of communication. (Demers, 2002). The expatriate employees must have empathy for others, the willingness to communicate and be able to deal with isolation and alienation. (Mendenhall and Oddou, 1986).

2.13. Building cultural understanding and awarenessHofstede devised a framework which helped in developing competencies which are required for operating in a cross cultural setting. The framework may be summarised as follows.

(1) To create an awareness

Of ones own culture and

Of the cultural differences

(2) To develop knowledge

Of the impact of cultural differences.

And the relative advantages and disadvantages of different cultures in a managerial setting.

(3) To build skills

To adapt behaviours to achieve effective results.

2.14. Meeting Cultural Challenges

Organizations have long depended on the cross-border mobility of their employees to enhance the value of their businesses.(Marshall, J 2003) Whether related to the creation of new markets or intended to reduce the cost of doing business, employee mobility plays an important role. Companies in India, with a growing presence in global markets, are increasingly using both inbound and outbound employee mobility programs-both of which present challenges to an organization. (Aras, B 2006)Cultural issues also play a role in ensuring the success of outbound mobility programs. In an example affecting daily life, many Indians are vegetarians. However, if they are unable to find familiar foods-as may occur if they are assigned to small U.S. towns or cities-they may return home long before the project is complete.

Although Indians typically speak English, linguistic subtleties and unfamiliar pronunciations can still trip the unwary. It is also a cultural difference that may sometimes produce interpersonal tensions and hamper productivity. Indians often need regular supervision and guidance, which is not the custom in many host countries. Further, they are perceived to be interpersonal/relationship oriented, whereas the host-country environment may be more task oriented.

Culture change can lead to culture shock and impede job performance. It takes time to learn which behaviors are appropriate in a new setting and to feel at home. That time may not be available in short-term assignments, making thorough preparation in advance of the assignment essential. (Burchell, R and Gilden, A 2008)Organizations should select adaptable individuals with good interpersonal skills for cross-border assignments. They should also provide cross-cultural training and support to assignees and, when families are accompanying the employees, to their families as well. Relevant "soft skills" training offered by a growing number of companies include social etiquette, language, and cultural differences. More intensive training focuses on negotiating styles and the work culture of the host location.( Hoecklin L. 1995) While four out of five organizations provide formal cross-cultural training to at least some expatriate employees some of the time, the 2005 Global Relocation Trends Survey found that only 20% make it mandatory.

2.15. Outbound Assignments

Outbound assignments for Indian companies are relatively new and present new challenges-as well as opportunities-for Indian companies doing business in overseas markets and for Indian employees of Indian subsidiaries moving to the headquarter locations of parent companies. Also, in the last two to three years, Indian companies have made entries into several new locales, and acquisitions outside India, a trend that is expected to continue. As a result, more and more Indian nationals are on cross-border assignments overseas. In fact, where India generally dealt with inbound assignments in the past, there appears to be a significant shift in the outward direction.

A large majority of outbound employees from India currently tend to be junior management and technology personnel sent abroad on short-term assignments. Sectors contributing to this outbound movement include software and business process outsourcing (BPO)-currently employing about one million people, according to National Association for Software Companies (NASSCOM) data-along with qualified information technology (IT), pharmacy, and chemical engineering. This rotating mobile population, part of a large pool of highly educated graduates seeking international experience, may spend four or five months overseas, return to India for a short time, and then go to another country. According to a 2005 survey by GMAC Global Relocation Services, more and more expats are young, unmarried, and eager to accept short-term assignments to garner international experience.

In general, the challenges inherent in moving Indian citizens abroad include immigration issues, compensation package design, tax consequences, cultural adaptation, and repatriation to India at the end of the assignment. On the immigration front, the biggest current challenge may lie in securing visas and local work permits. Delays of several months are common, presenting a huge administrative task when employees are needed onsite immediately, as is common, in mid-project. It recently took several months for an Indian multinational company to secure the necessary work permits for the 100+ employees urgently needed in a European country for a client project. Another issue is the need to conform to local employment laws that, in countries such as the U.K., Ireland, and Australia, require the payment of minimum wages (which are generally higher than Indian wages, including the overseas allowances) and the maintenance of payroll in the host country. Companies that readily handled 150 to 200 inbound employees on long-term assignments are finding it far more difficult to cope with thousands of short-termers going to different destinations.

Outbound movement will continue, but moving employees out of India on both short and long-term assignments presents challenges to organizations in human resources (HR) and tax management. HR challenges include equity, training, and compliance. Overseas assignments are generally attractive to Indians. However, to make the assignments successful and productive for both the employer and the assignee, it is essential that the assignee is appropriately trained to adapt to the host-country environment. Also, it is necessary to provide essential facilities (e.g., vegetarian food), as a leading banking and investment firm found. Further, to motivate employees to accept an international assignment, companies need to provide the right compensation package, whether those employees are going to a high-tax country like the U.K. or a low-tax country like Saudi Arabia. Tax equalization packages, although sometimes expensive, can be a way to achieve equity among employees moving globally. However, tax equalization may not be the only option for many employees and careful consideration must be given before selecting a compensation package.

(Shim, I 2001) 2.16. Cultural issues faced by Indians in UK:Indians working in call centres and other organisations in the UK have repeatedly reported cultural issues which they face in their work place.

Some of the instances where they faced problems are listed below:

Irate customers

This factor has been cited as one of the most important reasons for Indian employees in call centres to quit and because of this many employees are under a lot of stress and many UK organisations have started appointing counsellors and psychiatrists to help the employees cope.

An increasing number of Indian employees (mainly call centre employees) are quitting their jobs as they are unable to handle the abuse from British customers and cope up with the stress and persistent rudeness. Below are a few examples of the types of verbal abuse faced by Indian Employees in UK call centers:

Example:1- Eugene, 27, an employee from Spectrumind( a company which provides accounts services for BT) was abused by a customer as a Paki and was asked not to call the customer again. She was very depressed and was reduced to tears on this. She also said that once the customers detected from their accent that they werent English they used to discriminate them a lot.

Example 2:- Even Pooja Chopra another Indian who used to work for BT and America Online received similar abuse and racism; She had a customer who said "You're a Paki; I don't want to talk to you, pass me to someone who can speak my language".

Employees faced a spectrum of rudeness - from open racism and discrimination to sexual harassment and anger at unsolicited sales calls. Analysts have noticed that the number of racist customer and clients is constantly growing in the recent years and the customers have expressed anger due to more and more customer service jobs being allocated to Indians which has become a sensitive issue now. Hostility from clients was cited as one of the major reasons for Indians to quit their jobs.

This concept of racism has become a growing problem and anger has been expressed from the West because of job losses and the fear of off shoring. People will just call up with difficult questions putting you in an uncomfortable position to converse with them. For Example-"You're from India. You don't know anything. I don't want to speak to you".

Companies are battling a departure rate of 60%-70% annually with staff turnover being a major problem. Firms are therefore taking many steps to help the employees to be to deal with abuse as most of the staff are quite young and dont have the required skills and ability to help them cope up with the stress. Employees are already stressed as they have to work in the nights and this has resulted in low overall productivity. In this stage any abuse really lowers their self esteem and confidence as they are very vulnerable. They dont want to deal with anyone for sometime and the final productivity is affected.

Current research shows that more than 50% of the Indian employees would like to receive counseling and the counselors are also making the expats understand not to take the abuse personally. Many companies have now suggested that staff should anglicize their names adopting fore names like Paul and Mary.

The call centre Unionist, Gautam Mody has stated that there are no workers collectivists in the UK for the 350,000 Indian Employees in call centers in UK.

Organizations are now allowed to legally permit the staff to hang up on customers after warning them thrice to mind their language (which was a sackable offence till now). Trainers have also started to train the staff about the different forms of cultural rudeness the staff might face. British customers can be very rude but in a polite way, Anita Bhuttar, training vice-president of GTL, a Mumbai-based company, said. The British customers generally wouldnt use abusive language but they can from their voice you can make out that they are angry. (Gentleman, A 2005). It has been observed that if cultural diversity is an asset to the organization if it is managed well and on the other hand it leads to poor performance if its not handled in the right way. The nature of the impact of the positive or negative consequences of diversity depends more on the type of diversity climate rather than the diversity itself (Bhaduri et al, 2000). In case he employees are not able to communicate effectively they feel that they are excluded and feel discomfort and develop suspicions. Every facet of the life of employees and expatriates and their families can be affected by communication impediments hindering their happiness in their current surroundings and adjustment to the host culture and country. All these factors may result in the expats becoming inefficient in group and individual processes, have a slow career progression, ambiguity, complexity, psychological stress and confusion and finally results in getting potentially devastated.

An increase in cultural diversity has made the managers realize the importance of cross cultural training in order to help employees and expatriates to effective adjust in the new environment. (Hung Wen, L 2007)2.17 The need for research-A Summary:

The Literature Review suggests that although a lot of research has been done on expatriates/expatriation, only very little research has been done on Indian Expatriates in the United Kingdom. There is very limited information on the cultural issues faced by them and what steps and measures have actually been taken to solve these cultural issues. The different issues will be explored in this research by conducting interviews with Indian Expatriates and also sending some open ended questionnaires to Indian expatriates. This research/study therefore sets out to look at the most common issues faced by Indian employees and the reasons behind them.

Review of literature as put forward above and personal interest in the subject area have led to the development of certain key objectives for this research. Many gaps are found in the research regarding Indian Expatriates in the UK which have to be filled. These gaps led to the collection of primary data. Some of the gaps which were identified in the previous literature are listed below.

To study if their expatriate assignment help them in career progression?

To study if the Indian expatriates received any pre departure training before coming here (to the United Kingdom)?

To study if the respondent received any kind of impartiality (racism or discrimination) from the employer or other employees or customers?

To study if the lack of fluency of the language has led to any cultural differences?

To study what they felt like being in the new place etc.

In order to fill these gaps an empirical study was done which sought to answer and study the questions which were not researched previously and the questions of the research are listed in the questionnaire which is attached in the appendices section (Appendix B) of the project.

CHAPTER 3

RESEARCH METHODOLOGY3.1 IntroductionIn the literature review the questions which need to be answered for the research are stated and in this chapter the methodological approach which has been chosen to fulfil the research is discussed. Each of the following sections will form a part of the research process. This will follow with the collection of primary and secondary data which will fulfil the aims and purpose of the study. The methodology was chosen depending on the purpose, objectives, scope and aims of the study and justifies it. This was an empirical study which is one of the most common forms of research report or dissertation.

3.2. Research aims:

The present research was based on Indian Expatriates in the UK. The prime reason of the current research was to investigate the cross cultural issues and other reasons which lead to culture shock within the population of Indian Expatriates/Employees. This research in particular has helped to determine the significance of numerous variables and factors that lead to culture shock. An evaluation of the previous literature on this topic/area suggests that a number of factors influence the adjustment process in the new settings.

An initial framework was formed for the empirical research in which the variables relating to culture shock were placed in 2 categories. In the first category the factors that would impact on an individuals inter-cultural sensitivity like gender, age, previous international experience, duration in the present organisation etc were placed. Variables which function with an individuals inter-cultural sensitivity like the fluency of the English language, cross cultural training, difficulties faced while communicating with the British employees, perceptions about host and home country culture, racism and/or any sort of discrimination received etc. were placed in the second category. This framework is summarised in Figure 1V.

Figure IV: A conceptual Framework

Source: Chang, C. T (1996)

3.3 Research approachBoth a qualitative and quantitative study was applied for this research as it attempted to explore the experiences in terms of challenges and adjustments of employees in the context of cross-cultural setting. Thus it was required to interpret the experiences that the informants encountered during their assignments. The qualitative study had helped to understand how the individuals give structure to their lives in the host country and to analyse the perceptions of the employees. Qualitative research often works with small samples of people. Hence the samples need to be more purposive than random (Gary, 2004). In Qualitative research 4 methods are used typically for collecting data: They are listed as follows

(1)Direct observation: Respondents words and or actions are recorded without necessarily asking them questions.

(2)Analysis of materials and documents: written materials such as archives, legal statutes, minutes of meetings, letters, memos and communications.

(3)Interviews: Verbal responses to questions are gathered from individuals or focus groups of respondents. (Silverman, D. (2000) A Quantitative research in this study open ended questionnaires were framed to be distributed among Indian expatriates who were not available for interviews. These questionnaires were used to interpret the results of the study in the form of graphs, bar charts and tables etc. Some of these questionnaires were distributed personally and some were sent through e-mails as some respondents were located in different cities in UK and said they would prefer sending it through mails rather than to have a telephone interview with them. (Ghauri, P and Gronhaugh, K. (2002) The employees were expected to have some knowledge of management, well exposed to interactions among the locals either at their workplace or otherwise. Moreover, the employee must be a professional in any of these areas, namely, business, academic, medicine, communications or engineering, since these were mainly the common areas where skills and knowledge of the employees are most needed in this country.

For this research an inductive approach was used as in an inductive approach the researcher would normally develop and collect the theory and data and would develop a theory after analysing the data and moreover in an inductive approach the researcher has less concerns with the need to generalise and uses a more flexible structure to implement the necessary changes in the research as the research progresses. Inductive reasoning applies to situations where specific observations or measurements are made towards developing broader conclusions, generalizations and theories. (Saunders et al. 2003)

Using multi methodsMulti methods have been used in this research which means that the study has used both secondary and primary data and a qualitative and quantitative approach. (Trochim, W.M.K 2006). Multi methods were used because, for example, interviews were also conducted to get a feel of the key issues and also to develop a questionnaire.

Figure V: Forms of Primary research methods

Source: Saunders et. al, (2003)3.4 Research strategyThe research strategy is a broad plan of how the researcher goes about answering the research questions. An exploratory study id the research strategy used for this research. Exploratory studies are important means of finding out what is happening; to seek new insights; to ask questions and to assess phenomena in new light (Robson, 2002).It was helpful to understand the problem with clarity. The advantage of using an exploratory study is that it is adaptable and flexible to change.

Figure VI: The research process onion

Source: Saunders et. al, 20033.5. Research methods Methods are tools for data generation and analysis. Practically methods are chosen on the basis of criteria related to or even dictated by the major elements of the methodology in which they are embedded such as perception of reality, definition of science, perception of human beings , purpose of research, type of research units and so on( Sarantakos, 1998). 3.6. Research DesignIn order to finalize the research instrument for the empirical study and to gain partial acceptance and co-operation from the respondents, exploratory discussions were conducted in the start of the research with Indian employees in order to get knowledge of the types of cultural issues faced by them. The participants of the research were employees (both male and female) who are presently working and living in the United Kingdom for at least one year. A total of 15 expatriates were used as the sample for this research. Employees of Information Technology Companies were identified as key respondents. In order to avoid any kind of unwillingness or non response it was essential to conduct preliminary discussions. An exploratory research had helped to access a wide array of experiences experienced by the employees.

Many leading organisations were contacted to gather data. It was also learnt that the Information Technology sector was the primary industry where Indian employees were sent on International Assignments. Therefore Expatriates were contacted from major companies like Capita, Tech Mahindra and BeCogent. Their telephone numbers were obtained through personal contacts and telephone interviews were conducted with them. Questionnaires were also given personally and some sent via e-mails to some expatriates who werent available for the interviews. The questions asked for the interview and the questions that were asked for the interview are listed in the questionnaire attached in the appendix. On the whole 5 expatriates were interviewed and questionnaires were given to the other 10. A few employees who had prior intercultural experience were chosen to test the validity of the questionnaire. Validity can be defined as the meaningfulness, usefulness and appropriateness of the specific inferences made from the test score (Gall, Borg and Gall, 1996).

Background to the Interviewees:It is also useful to introduce some of the basic biographical information for each interviewee before going further. The names of the companies where the interviewees work are mentioned in the table below and the respondents are chosen from various other companies (mostly chosen from BeCogent Ltd.) Table II contains the indicators of personal data of the 5 interviewees to give a clear picture of the information in order to develop a better comprehension of the following analysis. Interviewee AInterviewee BInterviewee CInterviewee DInterviewee

E

GenderFemaleMaleMaleMaleFemale

Company NameCapitaTech MahindraTech MahindraBecogentCapita

Position in the organisationTesterTechnical AssociateTechnical AssociateBusiness AnalystTester

Been Expatriate for ( till August 7th)6 months3 years9 months4 years2 years

Previous International Work ExperienceNoNoNoNoNo

Living with familyNoNoNoNoNo

Table II: Background to the Interviewees Constructed by the researcher.

All the interviewees were interviewed after their shifts and the interviewees took approximately 15 minutes each and the questionnaires were returned personally and through e-mails in maximum two days. The interviewees were highly participative and ready to answer the questions in general. Interviewees were asked about their adjustment so far and if they were offered any kind of training pre and post arrival. In addition they were asked to share their recommendations for the future expatriates.

3.7 DATA COLLECTIONResearch instrumentData was gathered using primary and secondary data. Subsequent to the initial discussions which are described above, a questionnaire (the research instrument) was designed which listed the final questions that had to be asked during the interview and also which was distributed to the expatriates. The collection of actual opinions of the Indian Expatriates was considered crucial in this study and the best way of getting their opinions was through interviews (telephone interviews in this study were conducted due to practical difficulties). Telephone interviews and distribution of questionnaires helped to keep a relaxed relationship between the interviewer/researcher and the interviewee/respondent. Qualitative data can be collected by using semi-structured interviews or discussions in which an interview situation is set up which gives the respondents the time to answer the questions and give their opinions on the subject. An interview is a purposeful discussion between two or more people (Kahn and Cannell, 1957). This method gives the researcher insights into how individuals think about their world. Interviews help the researcher to gather important, reliable and valid data which are relevant to the research questions.( Kosgi, H.M (2004)

For the researcher, conducting interviews can be quite challenging because it requires the ability to handle the interview as diplomatically and non-judgementally as possible (Clark et. al., 1998). In order to avoid making generalizations on the behaviour the researcher must understand the respondents view point. Mostly personal contacts were used to conduct the research. Besides due to the time constraint, the interviewer should also be capable of controlling the progression of the interviews. Furthermore, it was important to strike a balance between allowing the interviewees to talk freely an keep them on track or it was very likely that the researcher got far more of the interviewees own personal views than what the researcher actually wants. Therefore the structure and objective of the interview should be carefully framed beforehand so that the cost, mainly of the time aspect, of conducting interviews can be kept at the lowest level. The telephone interviews were conducted and questionnaires were distributed in the first week of August. To some of the respondents an English questionnaire was distributed as those respondents couldnt attend the interview and the questionnaire was very simple to understand. The questionnaire comprised of biographical data which included age, gender; the ability to speak the English Language and other variables like the duration spent working for the present organisation/company/firm and time spent working in the United Kingdom. 3.8. Data analysisThis research identified factors which affected the adjustment of Indian Expatriates. This study also helped to list the suggestions for future Indian expatriates coming to the UK and also suggestions for the MNCs and managers to recruit expatriates with the right skills. The main objective was to study the potential problems an issues faced by the Indian Expatriates in United Kingdom. The interviews and questionnaires helped to get a better understanding of the challenges and the support received from the organisations. The research was conducted in MNCs in UK who had Indian Expats. Data was further organised according to the research objective and the data collected from the 15 respondents was separately analysed against each factor which is then given in detail in the next chapter called Findings and Analysis. A percentage analysis was done for the various factors of adjustment and is represented in the form of tables, charts and pie diagrams which then helped to develop a better understanding of the importance of various factors and the issues faced in percentages. 3.9. Methodological Limitations to the Study:

One of the important decisions in the cross cultural research design is the extent of population coverage. Different comparable samples had to be taken to be truly representative. Due to resource constraints only a small sample could be analysed for this study and this has limited the scope and results of the research. This research uses a convenience sample since even employees with less than one year experience have been chosen as respondents for the research. They cannot be considered to be truly representative samples of the entire Indian employee and expatriate population in UK. One of the practical difficulties faced during the approach was that it was not easy to get in contact with many expatriates. So the sample size is also small (15 expatriates). Another important challenge was that all the 15 expatriates were not available either for personal or telephone interviews and so questionnaires were developed for those who couldnt attend the interviews and these questionnaires were distributed personally and some via e-mails. However it can also be concluded that the results of the study from these respondents could represent the trend of this cultural group.

CHAPTER -4

FINDINGS AND ANALYSIS4.1. Introduction:In this chapter the research questions that are mentioned in Chapter 1 are analysed and an attempt has been made to try to answer the same. This chapter aims to provide an analysis of the opinions of the respondents to compare the practices and consequently to present suggestions for the MNCs to develop a better expatriation system in the future. A percentage analysis was done to study the various factors of adjustment (demographic, situational factors etc.). The percentage analysis for the various factors is represented in the form of bar charts, pie diagrams and tables. It was observed that a number of factors influenced the adjustment of the Indian Expatriates in the UK. The factors are studied below in detail. 4.2. Demographic Factors:

It is observed that respondents were mostly male. Other demographic factors that were used in this study are age, duration of stay, fluency of the English Language, work experience, whether or not the respondent is living with the family etc. are discussed below. The questionnaire also included a question on the expatriates position in the organisation. (Appendix B). Age:

Respondents were distributed over the age range 20 to 30 years, Most of the respondents from the total of 15 (60%) were between 25-30 years and 40% of the respondents were between 20 and 25 years of age.

Chart I: Respondents Age RatioDuration spent in the United Kingdom:

73% of the respondents said they have been living in the United Kingdom for less than 1 year now and 27% have been living for1-2 years.

English language:

Language is an important variable in cross cultural adaptation. There is a positive relationship between language proficiency and the social interactions with the host country nationals. Therefore the expatriates should not only possess language proficiency but at the same time must have good information gathering, observation and listening skills, problem solving, cultural awareness and human relation skills.(Church, 1982)

Taking the entire sample, surprisingly, only 40% answered that they had fluent English and 60% said they has only a conversational ability and that their English was average. Expatriated also remarked that when they dint converse in fluent English with their colleagues and general public they faced a lot of abuse and difficulty.

Chart II: English Fluency AnalysisDuration Spent in the present Organisation: 60% of the respondents that were used for this study have been working in the present organisation for less than a year, which means they have come into the country just recently and about 40% said they have been working for more than a year now. Previous International Experience:

73% percent of the sample does not have previous international work experience and 27% of them have worked in other countries before coming to the United Kingdom. The 27% who said they had previous international experience dint find great difficulty in adapting and that previous experience also minimises the initial difficulty in the host country.

Chart III: Situational FactorsLiving with Family:90% of the respondents said they are not living with their family and 10% of the respondents answered that they were living with their family.

Descriptive Statistics of Respondents Demographic Factors:

VariablesPercentage

Age20-25

25-3060%

40%

GenderMale

Female90%

10%

Duration spent in the present organisation< 1year

1-2 years

>2 years 60%

40%

0%

Duration in UK < 2 years

>2 years73%

27%

Table: 1II: Descriptive Statistics of Respondents Demographic Factors:

4.3 Factors of adjustment:In this section the various factors relating to adjustment and the situations in which cultural differences arose are discussed in detail. Questions relating to their perceptions and views of the UK, the cultural challenges they faced and importance of cross cultural training are also discussed.

Purpose of the assignments For many MNCs expatriation has become an ideal option, to a certain extent, to facilitate the operations of their overseas subsidiaries. But the purpose of expatriation can be varied. Evans et al. (2002) proposed that expatriation usually could be categorised into demand-driven type and learning driven type. The former type of expatriation is needed mainly when the knowledge and competencies of the expatriates are not available locally, while the latter type of expatriation normally takes place when the local capabilities have been developed and it is beneficial for the expatriates or the MNCs to cultivate greater abilities to local management. Naturally the 15 participants /respondents in this research carry different purposes as well.( Brewster, C., Sparrow, P. & Vernon, G. (2007)1. Career progression:

The purpose of career enhancement assignments is to serve young professionals and managers as an integral part of career development (Black et al., 1999), and some of the respondents were eager to get such a chance.

When asked if their expatriate assignment helped in any kind of career development, 83% of the expatriates said their overseas assignment did not help them in career progression and only 17% said their assignment helped them in enhancement of their career.

Most of the interviewees said they were expatriated on a demand driven basis, while a few had different intentions (i.e., they volunteered which means they were learning driven type)

One of the interviewees who said her assignment helped her in career assignment quoted:I got the idea to study in the UK because I thought it is a way to get a job in the UK and now since I have got a job I like it because I like to gain career experience in a different country. (Interviewee B).

Another respondent said Yes. It is a good learning experience. As a professional I am learning hoe to work and live in a different country and culture.____________________________________________________________________Names of the Interviewees and the respondents are not disclosed due to anonymity.2. Pre-Departure Cross cultural Training for respondents:

Most academics approved of the effects of pre departure training on enhancing the performance of expatriates (Wang, 1997; Stanek, 2000). Wright et al. (1996) presented a systems approach in which the training details were organised into a systematic process to manage expatriates. Apart from this systematic approach, more classical model of cross cultural training, proposed by Mendenhall and Oddou (1986), stimulated more vivid discussions among researchers. It is found that cross-cultural training is positively correlated to the development of candidates confidence in their own abilities to interact with effectiveness in a foreign setting.

From the data collected through interviews and questionnaires it was observed that, shockingly, 100% of expatriates did not receive any pre-departure training for their overseas assignments (Oddou, 1991). The companies that were chosen didnt really provide any pre departure cross cultural training as expected. All the respondents said that they did not take any predeparture training before they assumed their responsibilities. It could be inferred that the procedure of pre-departure training was shortened or omitted, thus saving the cost of operation.

An interviewee expressed her frustration due to a lack of cross-cultural exposure in terms of work: She said

The first couple of wee