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.