TRANSFERRING TO WORK IN THE PHILIPPINES FOR A FEW YEARS

Globalization and competitive considerations in foreign marketplaces have had a considerable impact on the business environment. Managers working for global organizations may be sent to work in foreign nations on a permanent or temporary basis. In this context, cross-border mobility of human resources has become a regular feature of international corporate management. Expatriates frequently confront difficulties as a result of cultural differences and language problems. The foreign assignment may fail to fulfill its intended goals if they are not appropriately planned from pre-expatriation to repatriation. This report provides an assessment of the factors that are likely to be encountered in an expatriation exercise in Philippines. It evaluates the steps to be taken and issues to be considered during pre-expatriation, expatriation and repatriation to make the exercise successful. Each of these stages of international assignments has a significant impact on the success of the company in international management.

Country Overview

Philippines is an important case study for international management exercise because it has a unique culture; yet it has a great potential for businesses to expand. An American or European company that is planning to do business in emerging markets of Asia can choose Philippines as their entry point. The country’s economy is resilient to global economic distress due to low dependence on exports and international securities. The Philippine culture is characterized by some aspects with Malay heritage including traditional festivals and dances.

Based on Hofstede’s six dimensions of national culture, Philippines has a highly collectivist culture, very high power distance, high masculinity, low long-term orientation index, low uncertainty avoidance and low indulgence (Geert Hofstede, n.d.). Most notable is the country’s high power distance orientation. This culture indicates that individuals in Philippine societies are not equal. There is a huge power gap and hierarchy between subordinates and managers in organizations. Furthermore, people value collectivism whereby members of the organization work in groups to protect the interests of the organization or teams.

Although Philippines and the U.S. have some cultural differences, it is a good destination for American multinationals due to some similarities between the two countries. Philippines has some western values and cultural aspects due to American and Spanish impacts of colonization. Due to these foreign occupations, Philippines adopted Christian religion and English language. In this regard, expatriates are likely to experience little language barriers and religious differences.

Pre-Expatriation

Before full-scale expatriation and international assignments, the people involved should take some time to learn, prepare and plan how to operate effectively in the host country. The expat should understand the festivities, cultures, language, attitudes and values of the Philippines before travelling. The expatriate should abandon the old business habits and communication approaches of the home country and adopt new ones that reflect the host country’s culture (Ko, H.K., and Yang, 2011). This process may be difficult and expensive; so it is necessary for the expatriate to get quality training to get a good understanding of the host country.

Training enhances increased chances of success of the international assignment. Expatriate training influences the attitudes, skills and ability of the expatriate to accomplish the tasks of expatriation. Pre-expatriation also involves environmental briefing, cultural assimilation, cultural awareness, language orientation and provision of country-specific information. It also includes briefing about the local business norms in the host country (Ko and Yang, 2011). People in Philippines usually require cordial and friendly greetings with high concern for organizational interests rather than individual needs. An expatriate should learn how to handle this situation in the host country.

Singh (2010) provides four aspects of acculturation that should occur in pre-expatriation exercise: self-orientation, other-orientation, perceptual skills, and cultural toughness. Self-orientation entails identifying and carrying out activities that may strengthen one’s self-esteem and confidence. On the other hand, other-orientation involves developing the ability to relate positively with people in the host country. For instance, an American expatriate may be required to adjust their individualistic approach to meet the collectivist approach in Philippines.

Expatriation

As an expatriate in Philippines, adjustment is now important to fit into the culture and business environment of the host country. During the expatriate’s stay in the host country, they go through four stages of adaptation: honeymoon, culture shock, recovery and adjustment (Oberg, 1960). In the honeymoon stage, the expatriate experiences positive attitudes towards the host country and its culture. They become enthusiastic and excited about the new experiences. In Philippines, the expatriate should look for an English-speaking person or a translator who can be trusted to show them around towns, find accommodation and visit new places, and help them to adjust to the new environment.

In the second stage, the expatriate is shocked by the new culture. They become irritated by the way people do things in the host country. In Philippines, the way people communicate and interact may be irritating to an American because people value cordial and friendly relationships. An American may want to go straight into business, but the Philippines will be nagging with questions, talks, laughter and interactions. Furthermore, Philippines is characterized by hierarchy which may make the expatriate to face difficulties on how to communicate with subordinates. It is important in this stage to avoid their home cues and communication styles, and start to use the language used by Philippines when communicating with subordinates.

In the recovery stage, the expatriate deals with their emotions and start to develop positive attitude towards the new environment. In this stage, it is also important to observe and use gestures, words and facial experiences of the local people to avoid miscommunication (Oberg, 1960). They may also attend the Philippine festivals and dances which are common parts of the host culture and traditions. The expatriate should also seek help from Philippine coworkers and gradually adapt to the host country’s work environment.

In the last stage, the expatriate should be able to overcome their culture shock and adjust completely to the host country. The expatriate is used to the drinks, food, language, interactions and customs of the Philippines. At this stage, the expatriate should use the local approaches to interact, communicate, and perform tasks of expatriation.

Repatriation

During repatriation, individuals reenter their home country after living in a foreign land for a long time. The expatriate is used to the foreign country, but also needs to readjust to the home country. They need to communicate and interact with home country colleagues and friends. They also experience high moods and excitement followed by a period of low moods. In this regard, the expatriate should go through repatriation courses. Companies often give their employees repatriation courses to prepare them about all the challenges and readjustment processes. Repatriation courses may include counseling sessions, handbooks, seminars, films, get-togethers and group discussions. The content of these approaches should be aligned to the individual needs of the expatriate.

The expatriate’s organization should provide coping strategies and methods to deal with psychological and emotional challenges. The expatriates also go through political, economic and social changes including cost of living, security and law (Lazarova & Caligiuri, 2001). Therefore, they require reorientation into the country’s and organizational law, policies and activities. The expatriate should also review financial planning to manage his or her financial needs in his home country. Lastly, the expatriate should learn to adjust to family demands e.g. children’s education.

Conclusion

Indeed, international assignments are essential elements of international management. An international assignment for an American going to Philippines is quite difficult. Philippines has several differences with USA, including collectivism, hierarchy and customs. The expatriate should be prepared early through the pre-expatriation process. In this stage, the expatriate is taught about the culture and values of Philippines. Expatriation requires the expat to go through four stages: honeymoon, culture shock, recovery, and adjustment. In each stage, the expatriate should concentrate on his or her duties and use the host country’s approaches to deal with challenges and opportunities. They should use the warm cordial language and hierarchical methods of communication to meet the needs of the host country. During repatriation, the expatriate is reoriented to the American systems to enable them to readjust to the new political, social and economic experiences. Repatriation courses should be offered to help them recover psychologically and emotionally to face the new environment in the home country.

References

Geert Hofstede (n.d.). Country Comparison: Philippines. [Online] Accessed from https://geert-hofstede.com/philippines.html June 18, 2017.

Ko, H.K., and Yang, M.L. (2011). The Effects of Cross-Cultural Training on Expatriate Assignments. Intercultural Communication Studies, 20(1), 158-174.

Lazarova, M. & Caligiuri, P. (2001). Retaining Repatriates: The Role of Organizational Support Practices. Journal of World Business, 36(4), 389-401.

Oberg, K. (1960). Cultural Shock: Adjustment to New Cultural Environments. Practical Anthropology, 7, 177-182.

Singh, S. (2010). The Journey of Expatriates from pre Expatriation to post Expatriation. Review of International Comparative Management, 11(2), 308-315.