Contents

The Case of the Floundering Expatriate.............................................................................1

Factors impeding functioning of teams-.........................................................................2
Lack of Open Communication among each other:..........................................................2
Lack of team collaboration...................................................................................... 2
Lack of synergy (no pattern of interaction that involves everyone).....................................3
Lack of understanding for cultural differences / cultural awareness....................................3
Ways of addressing others (secretary versus manager)....................................................3
Staff morale........................................................................................................ 4
Culturally different leadership/working styles...............................................................4
Difference in the levels of fluency of the common language.............................................4
Possible Solutions.................................................................................................... 5
Link to case study:.............................................................................................. 6

The Case of the Floundering Expatriate

-By Gordan Adler, July-August 1995 Issue, Harvard Business Review
The Floundering Expatriate case study is an all-to-familiar example of problems associated
with the global marketplace and when businesses and their leaders transcend physical and
cultural boundaries yet fail to adapt to cultural. This analysis will begin with an introduction,
a set the stage, of the Floundering expatriate case study. Once key players have been
identified and the organizational environment discussed, an analysis will be presented. This
analysis will contain discussion on culture and communication issues along with
globalization. This paper will conclude with recommendations for future research.
The Floundering Expatriate case takes place in 1995 and surrounds the events of a
globalization effort by Argos International, a holdings company based in the United States.
The CEO of this holdings company, Bill Louin, recognized a rising corporate star in Detroit
and felt this new executive, Bert Donaldson, would be the perfect person to help facilitate
communication between recently acquired divisions in Europe. Bert Donaldsons resume was
impressive. He was a professor of American Studies in Cairo, Egypt for 5 years and while in
the United States, Bert made major improvements to the organizational structure by
implementing cross-functional teams, achieved considerable cost reductions, and much more.
In addition, Bert was charismatic, a hard worker, and very sharp, a proven leader within the
U.S. organization. Louin recognized the need for just such a can-do company man in Zurich.
(Adler et al., 1995)
Argos Diesel Europe is experiencing cross-cultural challenges among various divisions of the
company (Argos Diesel Europe, its European suppliers, local company employees and the
new member - an American expatriate). The company places high priority on achieving
results, and it is conscious that in order to achieve their financial targets they must become an
integrated team. However, the team's cultural diversity and lack of understanding for each
others differences, demonstrates an intense friction and cohesiveness among members.

Depending on the group members' nationalities, each one has a different degree of
expectation, motivation, participation and commitment.
The main factors affecting the company from becoming an efficient cross cultural integrated
team include:
Factors impeding functioning of teamsLack of Open Communication among each other:
'I tell you, Frank, they're just going to have to join the rest of us in the post industrial age,
learn to do things the Argos way'.
No direct confrontation to discuss the real issues and what can be done to improve problems
(ex: Donaldson lack of cultural awareness and the effect on the company, group perception of
him) - (back talk)
Between Frank Waterhouse and Bert Donaldson (lack of communication as to what is
expected from Bert, how he can better adjust to the culture, ways of solving friction between
Bert and the team)
Between Frank Waterhouse and Bill Loan - lack of understanding about each others
necessities and overall company performance. Bill does not want to be bothered in solving
the particular issues that the Zrich office is having.
Between Bert Donaldson and his department team
Between Bert Donaldson and the company's suppliers (as he delivered his speech, everyone
in the audience was already familiar with his team-building plan)
Donaldson and Frau Schweri (manager) - if proper communication was established at the
beginning Frau Schweri could have assisted in setting up the meetings and familiarize
Donaldson with the social/organisational etiquette
Arrival of trainers in Zrich
- Two year contract being offered to the trainers, "after Frau Schweri adviced him not to"
Lack of team collaboration
Lack of having an 'open mind' work approach
Individual vs collective attitude
Examples:
- Frank's self-centered attitude toward his own career plans in the US versus an overall
attempt to ensure everyone in the team properly adjusts to changes in culture to ensure
quality performance.
- Frank being one of the drivers for the European team program
- Emphasis should be on overall team performance and collaboration
Lack of response from managers to Donaldson multiple choice survey. '
Group culture (not 1 way of doing things is better than another) - everyone should cooperate
and find a middle ground

Lack of synergy (no pattern of interaction that involves everyone)

No formal support to Bert to ensure he becomes aware of the organization culture in Zrich /
no support to Bert's family (external and internal pressures)
He is unintentionally offending colleagues
No one confronts about the real problems (Waterhouse or Bert)
Team exclusion - Bert is not part of Frank's "inner circle"
Relationship conflict - "interpersonal incompatibilities, including tension, animosity, and
annoyance"
- Between Bert and the European managers
- Between Bert and Jacob Hassler, VP of HR at Schwyz Turbines
I told him I was interested in his ideas, so he pushed his chair back and said , 'Please let me
know what you expect.' I reminded him that we're on the same team, have only two more
years for major change, gave him a week to get back to me with a few ideas, and you know
what he said? He said, 'Ja,ja.
- Between Bert an Ursula Lindt (regarding Bert's reference to Bettina Schweri as a
'secretary", instead of referring to her with her appropriate title
All of them are back talking negatively about each other
Lack of understanding for cultural differences / cultural awareness
Lack of tolerance for individual differences (when things do not go as expected, European
managers and administrative team I in Zrich becomes frustrated and complaint. Instead, they
should be upfront and finding a solution/means to tell Bert what is expected of him, instead
of seeing him fail. After all, the importance is to learn to overcome each others differences to
ensure the company succeeds.
Stereotypes: 'the American', 'the Germans' vs 'the Portuguese'
Difference in perception of time (punctuality, meeting duration, the 'right' time to be part of
an international assignment)
Use of titles and names
Ways of addressing others (secretary versus manager)
Dress code (American trainers wearing Mickey Mouse sweaters)
Understanding of hierarchical organisations
Team involvement / management styles
- "management by walking"
- managers' unresponsiveness to Donaldson's multiple-choice survey
Use of humor
Presentation style and amount of information covered ("bombardment of information", not
providing "enough background information")

Networking (allow breaks in between presentations to allow people to interact)

Staff morale
Networking and socializing is a central part of Argo's Zrich office culture
Differences in culture, work habits, and management styles are affecting the staff morale in
the office
Culturally different leadership/working styles
"Management by walking" (Bert's attempt to involve the entire department to obtain "ideas,
plans, or solutions")
Working habits (ex: working during lunch time and until midnight)
Presentation style, material covered, and duration (meetings running too short, or not
allowing for enough breaks to network)
Decision making (individual vs collective)
Difference in the levels of fluency of the common language
Everyone in the office, except from Bert is fluent in Swiss German
Bert's lack of attempt to speak Swiss German is viewed negatively by the team
- As a leader it is expected to have basic command of the language
Cross cultural issues and managerial issues
To sum it up the cross-cultural management issues in the case were as follows:
1.
2.
3.
4.
5.

Cultural Awareness (Hofstedes 6- cultural Dimension Theory)

Barriers to Cross-Cultural Communication in the team
Cultural Conflict
Staff Morale
Diversity

Hofstede's Six Dimensions of Culture

Psychologist Dr Geert Hofstede published his
cultural dimensions model at the end of the 1970s, based on a
research. Since then, it's become an internationally
recognized standard for understanding cultural
differences.
Hofstede studied people who worked for IBM in more
50 countries. Initially, he identified four dimensions
could distinguish one culture from another. Later, he
fifth and sixth dimensions, in cooperation with Drs
Bond and Michael Minkov. These are:
Power Distance Index (high versus low)
Individualism versus Collectivism
Masculinity versus Femininity

decade of

than
that
added
Michael H.

Uncertainty Avoidance Index (high versus low)

Pragmatic versus Normative
Indulgence versus Restraint1
Barriers to Cross-Cultural Communication
There are a few barriers in the process of cross-cultural communication. They include:
1.) Cultural Barriers
2.) Emotional Barriers
3.) Perceptual Barriers
4.) Language Barriers (Gore,V. 2013)
Cultural Conflict
Diversity
Cultural diversity is an inescapable reality and a concern in many businesses where it can
often posit ethical questions and dilemmas. Donaldson is working in a very diverse work
setting to what he previously worked in. This new environment. Presents the practical
consequence that people from different cultural backgrounds may have different belief
structures, priorities, perceptions, assumptions about future events, beliefs about the role of
information, and information-processing methods
Donaldson must act with his team accordingly to break down this diversity barrier. Building
a culture that embraces diversity and fosters humanity
Staff Morale
A winning business requires workers who are inspired by the mission; who take pride in their
contribution; and who are excited about coming to work most days.
The better trained worker is more alert, motivated and engaged to stop or reduce problems
before they happen or as early in the process as possible.
Possible Solutions
An action plan which Bert could suggest to his team:

Leadership Process- This could be about the acquire, apply and assess model of
leadership. These three could be done in order with the help of support from the
management and a smooth intervention could be possible with its help.
Staff Morale- A winning business requires workers who are inspired by the mission;
who take pride in their contribution; and who are excited about coming to work most
days. The better trained worker is more alert, motivated and engaged to stop or reduce
problems before they happen or as early in the process as possible.
Cross Cultural Communication- If cultures are such powerful influencers of
behaviour, managers must work hard to understand and manage them. To be honest
about ones intentions, goals, and interests can help to build trust and create a positive
bargaining zone.
Respecting culture difference and being patient in waiting for a response will be the
second step toward a successful negotiation. Extra services or practical favours
cement Friendship and sincerity in business transactions Get cultural informants
involved in decision-making. Cultural informants could be local businesspeople.

1 https://www.mindtools.com/pages/article/newLDR_66.htm

Culture to culture business can be enhanced when managers are cross-culturally

trained to be aware of areas likely to create communication roadblocks and conflict.
HR intervention- Leadership becomes more visible, model the desired behaviour.
Employees will receive a powerful statement from their leader. This will includeo Skill Management
o Time Management
o Training and Development
o Personnel Administration

Further recommendations would include:

Improving the communication within the company

Improvement of staff morale
Create a friendly and healthy working environment
Bring departments to work together as a close knit community making them cognizant
of each other
Provide personal support
Invest time in learning about the local culture
Do more informal interaction, like a morning coffee

In conclusion we like to say that Argos should train their expatriates in order for them to
efficiently do business in another country. Bert performed poorly because of his lack of
knowledge of European traditions, culture and environment.

Link to case study:

https://hbr.org/1995/07/the-case-of-the-floundering-expatriate#