Although Root and Heenan (1972) and Holley and Jennings (1987) have indicated that there is a trend in the US toward using more local nationals to staff overseas companies, the incidence of expatriate managers working abroad is significant to many multinational companies. This seems to be the result, in part, of greater free trade and more open political relationships around the globe. Companies from various parts of the world see opportunities to do business in other countries and also see advantages of establishing offices and/or production outlets in these foreign locations. Unfortunately, numerous difficulties accompany interpersonal relationships involving the expatriate working abroad. The paper focuses on managers attempting to understand unfamiliar personnel problems in cross‐cultural work encounters.