Four years ago, Pressman Company, a U.S.-based firm, entered into a joint venture with a Polish firm to manufacture a variety of plumbing supplies, both for the internal Polish market and for export to neighboring countries. Last week Pressman received the resignation of Jonathan Smith, an expatriate from the home office who nine months ago was appointed general manager of the Polish subsidiary for a four-year term. In the previous 39 months, two other expatriate general managers had also decided to call it quits long before their foreign assignments expired. In addition, 13 of the 28 U.S. technicians sent to work in the Polish facility returned home early. George Stevens, a senior vice president in corporate headquarters, estimates that these expatriates resignations and early returns have cost the company at least $4 million in direct expenses and probably three times as much in lost production and delayed schedules. When he heard rumors of widespread discontent in the workforce and a threatened strike, Stevens decided to travel to the Polish facility to find out what was happening. In the course of interviewing five local supervisors and 10 workers with the help of a translator, he repeatedly heard three complaints: first, the American managers and technicians thought they knew it all and treated their Polish counterparts with contempt; second, the American employees had unrealistic expectations of what could be accomplished within the stipulated deadlines established at corporate headquarters; and third, American employees were making three times more money than their Polish counterparts and enjoyed looking down their noses at locals by driving fancy cars, living in expensive homes, and hiring an army of maids and helpers. When he arrived back in the States, Stevens also interviewed Jonathan Smith and five of the technicians who returned early. Some common reasons for their early resignations emerged from these interviews. First, they described their Polish colleagues as lazy and just doing the minimum to get by while keeping a close eye on the clock for breaks, lunches, and go-home time. Pushing them to work harder only provoked anger. Second, they indicated that the Polish workers and managers had a sense of entitlement with little intrinsic motivation and initiative. Third, they complained of loneliness and their inability to communicate in Polish. Finally, most reported that their spouses and children were homesick and longing to return to the States after the first month or so. As he sits in his office, George Stevens is staring blankly out the window, trying to decide what to do. Assignment Goal. You have been hired as a management consultant located in the United States to offer some suggestions as to how the situation should be handled. First diagnose the causes of the problem based on what you have learned during this course. Then develop a set of recommendations to best deal with the situation..

1. Four years ago, Pressman Company, a U.S.-based firm, entered into a joint venture with a Polish
firm to manufacture a variety of plumbing supplies, both for the internal Polish market and for
export to neighboring countries. Last week Pressman received the resignation of Jonathan Smith,
an expatriate from the home office who nine months ago was appointed general manager of the
Polish subsidiary for a four-year term. In the previous 39 months, two other expatriate general
managers had also decided to call it quits long before their foreign assignments expired. In
addition, 13 of the 28 U.S. technicians sent to work in the Polish facility returned home early.
George Stevens, a senior vice president in corporate headquarters, estimates that these
expatriates resignations and early returns have cost the company at least $4 million in direct
expenses and probably three times as much in lost production and delayed schedules. When he
heard rumors of widespread discontent in the workforce and a threatened strike, Stevens decided
to travel to the Polish facility to find out what was happening. In the course of interviewing five
local supervisors and 10 workers with the help of a translator, he repeatedly heard three
complaints: first, the American managers and technicians thought they knew it all and treated
their Polish counterparts with contempt; second, the American employees had unrealistic
expectations of what could be accomplished within the stipulated deadlines established at
corporate headquarters; and third, American employees were making three times more money
than their Polish counterparts and enjoyed looking down their noses at locals by driving fancy
cars, living in expensive homes, and hiring an army of maids and helpers. When he arrived back
in the States, Stevens also interviewed Jonathan Smith and five of the technicians who returned
early. Some common reasons for their early resignations emerged from these interviews. First,
they described their Polish colleagues as lazy and just doing the minimum to get by while
keeping a close eye on the clock for breaks, lunches, and go-home time. Pushing them to work
harder only provoked anger. Second, they indicated that the Polish workers and managers had a
sense of entitlement with little intrinsic motivation and initiative. Third, they complained of
loneliness and their inability to communicate in Polish. Finally, most reported that their spouses
and children were homesick and longing to return to the States after the first month or so. As he
sits in his office, George Stevens is staring blankly out the window, trying to decide what to do.
Assignment Goal. You have been hired as a management consultant located in the United States
to offer some suggestions as to how the situation should be handled. First diagnose the causes of
the problem based on what you have learned during this course. Then develop a set of
recommendations to best deal with the situation.