International human resource management lesson 06

UNIT III LESSON ORIENTING AND TRAINING EMPLOYEES FOR GLOBAL ASSIGNMENTS CONTENTS 6.0 Aims and Objectives 6.1 Introduction 6.2 Orienting Employees for Global Assignment 6.3 Approaches to Training 6.3.1 Action Learning and the Experiential Approach 6.3.2 Transferability across Cultures 6.3.3 Organizational Learning 6.4 Integrating Business Strategy with International Training 6.4.1 Components of Effective Predeparture Training Programmes 6.4.2 Impact of Different Learning Styles on Training 6.4.3 Types of Cross-cultural Training 6.4.4 Cultural Assimilators 6.5 Let us Sum up 6.6 Lesson End Activity 6.7 Keywords 6.8 Questions for Discussion 6.9 Suggested Readings 6.0 AIMS AND OBJECTIVES After studying this lesson, you will be able to: Describe the need for orientation and training of employees going on global assignment Discuss the components of predeparture training Explain cross-cultural, action and organisational training 6.1 INTRODUCTION The management philosophy of a company, whether ethnocentric, polycentric, regiocentric, also influences the type of training For example, ethnocentric companies will provide all training at the headquarters and these will be designed and delivered by home nationals polycentric On the other hand, polycentric companies will rely on local managers to assume responsibilities for seeing that the training function is carried out wherever appropriate Geocentric companies organise training courses in different parts of the world, where a particular function is being best carried out 114 International Human Resource Management Today, more and more companies are spending substantial amounts of money on training and development of their employees to attain long-term organisational goals Training programmes are designed and delivered after extensive research and preparation so as to deliver acceptable returns on investment, and to secure sustainable competitive advantage The cost of expatriate failure is very high Therefore, MNCs take great pains to select the right persons and provide them with appropriate training before their departure as well as on arrival in a particular country This cross-cultural and job-related training is also necessary because multinationals have to deal with clients and suppliers from different countries and conduct negotiations to set up joint ventures and strategies alliances and manage subsidiaries abroad Therefore, they invest heavily on the training of all employees, particularly on expatriates Training is the process of altering employee behaviour, attitudes, and knowledge in a way that increases the probability of individual and organisational goal attainment Training aims to improve in relation to some future position or job, usually managerial When expatriates are unfamiliar with the customs, cultures and work habits of the local people, they often make critical mistakes, which can be avoided by providing them with proper training Box 6.1 provides an example Box 6.1: Cultural Ignorance is Bad Business An American company eager to business in Saudi Arabia sent over a sales manager to ‘get something going’ The salesman began calling contacts soon after his arrival After many disappointing appointments, the salesman ran into an old friend, who gave him an introduction to some basic rules of Saudi etiquette and how to business with the Arabs The salesman learned that he had repeatedly insulted his contacts by his impatience, refusal of coffee, ‘business first’ attitude and aggressive selling Even incidental acts such as handling people or papers with his left hand and exposing the side of his shoe while sitting on the floor were improper Saudi customs Effective training can prevent many errors and minimise the impact of others Some of the biggest complaints against expatriates revolved around personal shortcomings in areas such as politeness, punctuality, tactfulness, orderliness, sensitivity, reliability, tolerance and empathy Effective training programmes can minimise these personal problems Training can also improve the overall management style In terms of leadership, the locals would like their expatriate managers to be friendlier, more accessible, supportive and receptive to subordinates’ suggestions Recruitment and selection Training Pre-departure training Development International team International assignment Post-departure training Figure 6.1: Schematic Representation of Training and Development Proper training can address some of these demands It can enhance group decisionmaking skills, team work and leadership effectiveness Training and development is a subset of Organisational Development (OD), culture change and knowledge management Figure 6.1 is a schematic representation of training and development processes as practised by MNCs It also shows the link with the recruitment and selection process In order to compete successfully in a global market, more firms are focusing on the role of human resources as a critical part of their core competence and a source of competitive advantage As Kamoche (1996) points out, the human resource refers to the accumulated stock of knowledge, skills and abilities that the individuals possess, which the firm has built up over time into an identifiable expertise An indication of the importance of training and developing staff is the increasing number of multinationals that establish their own ‘universities’, or ‘schools’ Motorola, McDonald’s Hamburger, and Disney universities are good examples of these in-house training centres; several European, Japanese, and Korean firms have similar arrangements Training aims to improve current work skills and behaviour, whereas development aims to increase abilities in relation to some future position or job—usually managerial 6.2 ORIENTING EMPLOYEES FOR GLOBAL ASSIGNMENT International positions require an extensive orientation to familiarise the employee with culture, language and other unique aspects of the assignment Familiarisation trips could also be arranged for the prospective expatriates so that they can actually visit the country of their posting and live like natives there for a while The orientation programmes, generally cover areas such as: Pre-arrival Orientation (i) Cultural briefing: Explaining the traditions, customs, living conditions, clothing and housing requirements, health stipulations, etc (ii) Assignment briefing: Throwing light on length of assignment, vacations, compensation package, tax implications, repatriation policy etc (iii) Shipping requirements: Shipping, packing, storage, housing facility in the new location etc Post-arrival Orientation Once global employees arrive in the host country, they will require further assistance in ‘settling in’ Someone should receive them and help them in obtaining housing accommodation, establishing bank accounts, getting driving licenses, arranging admissions to school for dependent children etc (i) Cross-cultural training: Differences in culture, language and laws may make it difficult for the global employees to be on track quickly In order to lead a normal life, they need cross cultural as well as language training The failure to provide such training may create adjustment problems for the expatriate manager and the resultant culture shock (the inability to adjust to a different cultural setting) may compel the expatriate to quit the field altogether Firms can help employees avoid culture shock, of course, by using selection tools to choose the employees with the highest degree of cultural sensitivity An important part of an expatriate manager's training, further, should be an overview of the legal and ethical issues that are likely to be encountered on the overseas assignment 115 Orienting and Training Employees for Global Assignments 116 International Human Resource Management 6.3 APPROACHES TO TRAINING 6.3.1 Action Learning and the Experiential Approach An approach to both individual and organizational learning, based on this concept of learning by doing, which has widely adopted in British and international companies is that of ‘action learning’ This was originally developed in the UK in 1960s by Reg (Revans, 1965) who then began to set up educational programmes in Belgium, India and Egypt, based on these principles He sees learning as inextricably bound up with the process of management, arguing that everyone in the organization should be engaged in learning This presupposes the availability of information in the organization sufficient to enable learning to take place throughout the organization Revans (1965) suggests that there are four forces bearing on management decision-making: the need for economy of time and management effort; the analytical approach of the scientist, available to the manager, whilst not forgetting intuition which is the first weapon of management; the ability to understand and contain variability and risk by the use of statistical methods; a greater understanding, through the social sciences, of human beings as a determinant of success in the enterprises The first two aspects were seen as crucial in the upstream work of British Petroleum Revans goes on to develop this into a specific methodology of management learning that he calls ‘system beta’, with five phases: survey, the first phase of observation; hypothesis: theory development and conjecture; experiment: testing practice; audit: the comparing of actual and desired results; review: relating the specific result with the overall context Revans (1965) also describes a ‘system gamma’ that is the personal predisposition of the individual manager, his set or subjective consciousness This has an influence on the way problems are approached and tackled A further system, ‘system alpha’, describes the relationship between the impersonal situation and the personal value system of the individual manager It was on these basic principles that action learning was established on the premise that knowledge can only be the outcome of action Kolb (1976) developed the concept of experiential learning as a process or cycle comprising four stages, which also mirror Revans’ system beta, as follows: concrete experiences; followed by; observation and reflection; leading to; formation of abstract concepts and generalizations; leading to; testing of the implications of concepts for future action, which then leads to new concrete experiences Kolb sees this as the way learning happens, as it is governed largely by the pursuit of goals that are appropriate to our own needs 6.3.2 Transferability across Cultures In the cross-cultural context Hughes-Weiner (1986) qualifies the learning process described by Kolb as follows: Concrete experience: People from different cultures are likely to have different background and different experiences Reflective observation: As a result of different behaviour patterns, socialization and institutional and work experiences, individuals from different cultures may make different assumptions about what they see and understand through their experiences Abstract conceptualizing: Because people from different cultures have different cognitive frameworks, this may lead them to focus on irrelevant information or misinterpretations in a particular situation, thus drawing wrong conclusions and theories in a different cultural situation from their own Active experimentation: Behaviour differences between cultures may lead to misinterpretations and misinterpretations of the meanings of such behaviour outside their own cultures, leading to confusion and frustration In order to partly overcome the problems of simply transposing the experiential model on to other cultures, Jackson (1995) proposes four learning modalities as follows: Receptivity: Learners are predominantly receptive to practical stimuli or theoretical stimuli for learning depending on their cultural backgrounds and their experiences in national educational systems Perception: Learners are more intuitive about sorting and judging information, or are rational in a step-by-step approach in judging the quality of information that is the basis for making decisions Cognitive: Learners are more subjective in the way they make decisions and solve problems based on personal judgement, or base their decision-making more on logic and scientific approaches Control: Learners prefer to rely on their own initiative or on the direction of an instructor Results from surveying management ‘learners’ (both management students and managers) across the UK, France, Germany, Poland, Taiwan and Lithuania are as follows: Receptivity Modality In the practical-theoretical dimension, the main difference exists between the Polish and French groups, with the Polish management learners having an overriding preference for practical educational stimuli, whilst the French have a comparatively theoretical preference The learners from Taiwan are the most socially oriented, expressing a preference for learning with others The Lithuanian learners are somewhat different to the Polish on this dimension, in that they have a comparatively greater preference for learning from reading the text, but prefer to explore how to things rather than looking at underlying concepts The British too are social learners with a preference for practical activity and learning by doing The German learners express a preference for learning by doing and learning from simulations in the classroom Perceptual Modality Again, on the intuitive-rational dimension, the Polish learners account for the major differences They express an overriding preference for dealing with information and ideas in a rational way British learners express this preference most strongly Both 117 Orienting and Training Employees for Global Assignments 118 International Human Resource Management Lithuanian learners and those from Taiwan express a preference more strongly for practicality over ingenuity Cognitive Modality The Poles, Lithuanian and German learners show the greatest preference for decision making through logical processes, with the learners from France, Britain and Taiwan being the most subjective in their approaches to making decisions Behaviour Modality The learners from Poland and Taiwan show the greatest preference for an instructordirected approach, with the Germans and Lithuanians the least so The French have the least preference for self-initiated learning, with the Germans and then British preferring a self-initiated approach It is evident from this study that British management ‘learners’ favour practical and social learning activities, are intuitive, subjective and favour taking the initiative in their learning This may be an ideal cultural basis on which to build concepts of a total learning organization 6.3.3 Organizational Learning Although organizations as entities cannot learn (only individuals as corporate agents can learn) conditions in the organization can be created in order to facilitate this learning Hence Argyris’ (1992) single- and double-loop learning represent a cyclical process where actions (single-loop) or governing variables (double-loop) are adapted or changed (Figure 6.2) Match Governing variables Actions Consequences Mismatch Single-loop Double-loop Figure 6.2: Argyris’ Single and Double Loop Learning Single-loop learning takes place when mismatches between the outcomes that are intended and those that actually occur are corrected by simply changing the actions that were initiated in the preceding cycle Double-loop learning occurs when these mismatches are corrected by examining and altering governing variables and then actions Such governing variables are sets of beliefs and values that can be seen to drive and guide people’s action as agents for the organization Senge (1990), who has had much influence in developing and propagating worldwide the concept of the learning organization, proposes five ‘component technologies’ that contribute towards developing learning organizations: Systems thinking: This is essentially an ability to see above the isolated parts of the system, and to see how it all fits together Personal mastery: This involves continually clarifying and deepening personal vision, to focus on energies, and developing patience in order to see reality objectively and to provide a commitment to develop mastery Mental models: This involves an ability to understand and change shared mental models which pervade the organization and prevent change Building shared vision: This is more than publishing a mission statement; it is developing an ability to unearth shared vision and foster commitment rather than compliance Team learning: This begins with capacity of members of a team to suspend judgement and start to think together and to recognize the patterns of interaction within a team that militate against learning Senge (1990) contends that teams are fundamental learning units in an organization Bovin (1998) suggests that the learning organization as a concept is a means of addressing the requirement for the future organization in the changing international environment This may also explain the differences between the concept of training and development as an organizational sub-system, and an organization to learn He contends that the classic business process in the 1970s and 1980s was that: (a) a mission was formulated; (b) strategy was developed to achieve overriding business goals; (c) detailed objectives were set to ensure the achievement of strategic goals; (d) in order to achieve these objectives the necessary structures and processes were established; (e) job structures and job descriptions were then formulated to fill the organizational structure; (f) people were acquired who had the appropriate competences to fill the jobs as specified; (g) people were developed to fit the organization ‘Advanced’ organizations (Bovin’s, 1998) are now realizing that this model is inappropriate because of change demographics, as the gross number of people and specialist skills available are decreasing Hence ‘human assets’ must be more ‘efficiently utilized’ At the same time, competition for those competent people is increasing Managers have to change their style to reflect more employee involvement, personal creativity and must move from positional power to team leadership based on empowerment There is a need to maximize on the currently available human potential, and for a more efficient control on the investment in people development Hence (Bovin’s 1998) suggested business process of the future seeks to recognize that people have different abilities, tending to what they are best at, and doing this more successfully as part of a team (Figure 6.3) A learning organization is “an organization which facilitates the learning of all its members and continuously transforms itself” (Pedler et al., 1989) Rather than the essence of the learning organization being training, this implies individual and organizational selfdevelopment, with an emphasis on the two aspects of learning by individuals and learning by the organization (Mumford, 1988) The former, the individual learns by handling his own responsibilities, but also by carefully monitoring performance The latter, the organization, learns by discovering and correcting deficiencies in its actions Clarity vision and key strategic objectives Identify critical issues, i.e areas that must be focused on or improved Design a programme or process involving key people to address and resolve issues Develop ability to improve and achieve signification results A vigorous follow-up process to ensure effective implementation and results Figure 6.3: Business Process of the Future 119 Orienting and Training Employees for Global Assignments 120 International Human Resource Management Check Your Progress What are the different approaches to expatriate training? 6.4 INTEGRATING BUSINESS STRATEGY WITH INTERNATIONAL TRAINING Most expatriates, whether PCNs or TCNs, are selected from within the multinational’s existing operations, though, some expatriates may be hired externally Once an employee has been selected for an expatriate position, predeparture training is considered to be the next critical step This is an important attempt to ensure some cultural familiarity, especially if the expatriate’s host country is considered culturally tough Some form of cultural preparation is indicated because, functional ability alone does not determine success Effective cultural training also enables individuals to adjust more rapidly to the new culture As Earlay (1987) said a major objective of intercultural training is to help people cope with unexpected events in a new culture For these performance-related reasons, investing resources in training for international assignments can be justified easily (Robock et al., 1989) A large number of U.S multinationals have been reluctant to provide even a basic level of predeparture training U.S multinationals tended to use training programmes for expatriates less frequently than European and Japanese firms (Tung, 1982) A Price Waterhouse (1997) survey of European firms (including subsidiaries of nonEuropean multinationals) revealed that cultural awareness training remains the most common form of predeparture training, and that it is still offered on a voluntary basis rather than as a mandatory requirement 6.4.1 Components of Effective Predeparture Training Programmes Cultural Awareness Programmes It is generally accepted that to be effective the expatriate employee must adapt to and not feel isolated from the host country A well-designed cultural awareness training programme can be extremely beneficial, as it seeks to foster an appreciation of the host-country’s culture so that expatriates can behave accordingly, or at least develop appropriate coping patterns Sieve et al (1981) cite the culture of the Middle East to emphasize this point In the Middle East, emphasis is placed on personal relationships, trust and respect in business dealings; coupled with this is an overriding emphasis on religion that permeates almost every aspect of life Without an understanding of the host-country culture in such a situation, the expatriate is likely to face many difficulties during the international assignment The components of cultural awareness programmes vary according to country of assignment, duration, purpose of the transfer, and the provider of such programmes Tung, (1981) identified five categories of predeparture training, based on different learning processes, type of job, country of assignment, and the time available: Area studies programmes that include environmental briefing and cultural orientation; Cultural assimilators; Language training; Sensitivity training; and Field experiences To understand possible variations in expatriate training Tung (1981) proposed a contingency framework for dividing the culture and level of rigour of training Two determining factors were the degree of interaction required in the host culture and the similarity between the individual’s native culture and the new culture The related training elements involved the content of the training and the rigour of the training If the expected interaction between the individual and members of the host culture is low and the degree of dissimilarity between the home and host cultures is also low, then the training should focus on task- and job-related issues rather than culturerelated issues The level of rigour necessary for effective training should be relatively low If there is going to be high level of expected interaction with host nationals and large dissimilarities exist between the cultures, then training should focus on crosscultural skill development as well as on the new task The level of rigour should be moderate to high The duration of training also depends upon these factors It could be one to two weeks, in the first case, including focus on area briefing and sensitivity training; in the second case it can extend from two weeks to two months including language training, use of training assimilators and field experience in addition to area briefing and sensitivity training Mendenhall, Dunbar and Oddou (1987), propose three dimensions—training methods, low, medium, and the high levels of training rigour, and duration of the training relative to degree of interaction and culture novelty—as useful guidelines for determining an appropriate programme For example, if the expected level of interaction is low and the degree of similarity between the individual’s native culture and the host culture is high, the length of the training should probably be less than a week Methods such as area or cultural briefings via lectures, movies, or books would provide the appropriate level of training rigour On the other hand, if the individual is going overseas for a period of two to twelve months and is expected to have some interaction with members of the host culture, the level of training rigour should be higher and its length longer (one to four weeks) In addition to the information-giving approaches, training methods such as culture assimilators and role plays may be appropriate If the individual is going to a fairly novel and different host culture and the expected degree of interaction is high, the level of cross-cultural training rigour should be high and training should last as long as two months In addition to the less rigorous methods already discussed, sensitivity training, field experiences, and inter-cultural experiential workshops may be appropriate training methods in this situation Black and Mendenhall (1989), take three aspects of social learning theory—attention, retention, and reproduction—and show how these are influenced by individual differences in expectations and motivation, and the incentives to apply learned behaviours in the foreign location This approach recognizes that effective training is only the first step and that the expatriate’s willingness and ability to act on that training in the new environment is crucial to effective performance However, their theoretical model and related propositions have yet to be rigorously tested 121 Orienting and Training Employees for Global Assignments 122 International Human Resource Management Contextual and situational factors Individual Differences locus of control time available duration and nature cultural toughness efficacy expectations outcome expectations Skills Development self dimension Motivation relational perceptional Cultural Awareness Training Motivation Retention Reproduction Incentives Adjustment and performance Performance Management System Source: Dowling et al., International HRM (2001) p 160 Figure 6.4: Cultural Awareness Training and Assignment Performance Insufficient time is often given as a reason why multinationals not provide predeparture training; it would be difficult to develop appropriate predeparture training programmes in such cases Other contextual and situational factors – such as cultural toughness, length of assignment, and the nature/type of the job – may have a bearing on the content, method, and process involved in the cultural awareness training programme More importantly, monitoring and feedback should be recognized as important components of individual skill development, particularly as adjustment and performance are the desired outcomes of cultural awareness training Figure 6.4 draws together the components of the three models reviewed above It stresses the importance of attention paid by the potential expatriate to the behaviours and probable outcomes of a cultural awareness training programme, the individual’s ability and willingness to retain learned behaviours, and their reproduction as appropriate in the host location Preliminary Visits One useful technique in orienting international employees is to send them on a preliminary trip to the host country A well-planned overseas trip for the candidate and spouse provides a preview that allows them to assess their suitability for and interest in the assignment Such a trip also serves to introduce expatriate candidates to the business context in the host location and helps encourage more informed predeparture preparation Most firms that utilize preliminary visits, though, weigh their cost against premature recall and underperformance risks A potential problem exists in that the aim of the preliminary visit is often twofold—part selection decision and part predeparture training Combined with cultural awareness training, the preliminary visit is a useful component of a predeparture programme Exposure to the expatriate community, if one exists in the proposed host location, can also be a positive outcome of the preliminary visit Brewster and Pickarl (1994) found that an expatriate community has an influence on expatriate adjustment Language Training Language training is a seemingly obvious, desirable component of a predeparture programme However, there are three interrelated aspects related to language ability that need to be recognized: (i) Role of English as the Language of World Business: It is generally accepted that English is the language of world business, though the form of English is more “international English” than that spoken by native speakers of English Multinationals from English-speaking countries such as the United States, the United Kingdom, and Australia often use this fact as a reason for not considering language ability in the selection process, and for not stressing language training as part of predeparture programmes However, Pucik (1985) comments that an exclusive reliance on English diminishes the multinational’s linguistic capacity The resultant lack of linguistic competence has strategic and operational implications as it limits the multinational’s ability to monitor competitors and process important information For example, translation services, particularly those external to the firm, cannot make strategic inferences and firm-specific interpretations of language specific data (ii) Host-Country Language Skills and Adjustment: Clearly, the ability to speak a foreign language can improve the expatriate’s effectiveness and negotiating ability As Baliga and Bakar (1985) point out it can improve manager’s access to information regarding the host-country’s economy, government, and market Of course, the degree of fluency required may depend on the level and nature of the position that the expatriate holds in the foreign operation, the amount of interaction with external stakeholders such as government officials, clients, trade officials, as well as with host-country nationals The ability to speak the local language, regardless of how different the culture was from their home country, was as important as cultural awareness in their ability to adapt and perform on assignment Knowledge of the host-country language can assist expatriates and family members gain access to new social support structures outside of work and the expatriate community Language skills, therefore, are important in terms of task performance and cultural adjustment Hiring language competent staff to enlarge the “language pool” from which potential expatriates may be drawn is one answer, but its success depends on up-to-date information being kept on all employees, and frequent language auditing to see whether language skills are maintained (Marschan et al., (1997) (iii) Knowledge of the Corporate Language: For multinationals from non-Englishspeaking countries, the standardization of information and reporting systems tends to be handled in the language of the parent’s country of origin until geographical dispersal makes that problematical The multinational then adopts a common company language to facilitate reporting standardization and other control mechanisms, particularly normative control English has become the language of international business, and quite often, English becomes the common language within these multinationals Marschan et al (1997) suggest that the question of a common corporate arise to the same extent within multinationals from English-speaking countries such as the U.S English is automatically the chosen corporate language Language skills become an important aspect PCNs can find themselves 123 Orienting and Training Employees for Global Assignments 124 International Human Resource Management performing as communication conduits between subsidiary and headquarters, due to their ability to speak the corporate language It also can give added power to their position in the subsidiary as PCNs often have access to information that those not fluent in the corporate language are denied A PCN fluent in the parent-company language and the language of the host subsidiary can perform a gatekeeping role, whatever the formal position the expatriate may hold Practical Assistance Another component of a predeparture training programme is that of providing information that assists in relocation Practical assistance makes an important contribution toward the adaptation of the expatriate and his family to their new environment Being left to fend for themselves may result in a negative response toward the host-country’s culture, and/or contribute to a perceived violation of the psychological contract Many multinationals now take advantage of relocation specialists to provide this practical assistance Further language training for the expatriate and family could be provided, particularly if such training was not possible before departure While local orientation and language programmes are normally organized by the personnel staff in the host country, it is important that corporate HRM staff liaise with the sending line manager as well as the HR department in the foreign location to ensure that practical assistance is provided Job-Related Factors We know from the cross-cultural management literature that there are differences in the way people approach tasks and problems and that this can have an impact on the learning process (Park at al., 1996) The ability to transfer knowledge and skills in a culturally-sensitive manner should perhaps be an integral part of predeparture training programmes A related issue is that an international assignment can be a promotion to a managerial role for which the preparation is effectively the international assignment In some firms, predeparture training may not be provided to TCNs—at least to the extent of that available to PCNs This omission could create perceptions of inequitable treatment in situations where PCNs and TCNs work in the same foreign location As an Australian working in the Japanese subsidiary of a U.S multinational remarked, “We were third-class nationals in Japan The Americans received cultural training about Japan before they left the United States We were just given our plane tickets” (Welch, 1989) 6.4.2 Impact of Different Learning Styles on Training Two countries may be similar in ecology, climate and may have similar language and legal, educational and governmental infrastructure, but they may be markedly different in terms of beliefs, attitudes and values A recent study (Case, 1992) investigated learning styles by giving a questionnaire to British, Indian, East African middle managers Two dimensions of learning styles were measured: analysis and action The analysis dimension measured the extent to which the learner adopts a theory building and test approach as opposed to using an initiative approach The action dimension measured the extent to which the learner uses a trial and error approach as opposed to a contemplative or reflective approach The researcher found important differences in learning style in these three cultures Indian managers scored higher in analysis than the other two groups; British managers in action and East African managers scored the lowest in both analysis and action Therefore, it is important that not only are the contents of the training programmes designed differently, but the processes and learning environment also be matched according to national cultures Further, it needs to be remembered that even if learning does occur, the new behaviours will not be utilised if they are not reinforced One of the most common types of training is that of self-evaluation Participants in such training are provided personal insights about their behaviours, for example, whether their managerial style is intuitive, factual, analytical or normative A factual style manager looks at the available information and makes decisions based on the data An intuitive style manager is innovative and imaginative and can jump from one idea to another An analytical style manager is systematic and logical and carefully weighs alternatives to problems A normative style manager is idealistic of all four types of styles in varying degrees, but by learning their individual preferences, participants gain insights into their own approach to dealing with people 6.4.3 Types of Cross-cultural Training Tung (1982) Surveyed managers in Europe, Japan and the U.S and found six major types of cross-cultural training programmes: Environmental briefing is used to provide information about such things as geography, climate, housing and schools Cultural orientation is designed to familiarise the individual with cultural institutions and value systems of the host country Cultural assimilators using programmed learning approaches are designed to provide the participants with inter-cultural encounters Language training is aimed at increasing communication effectiveness Sensitivity training is designed to develop attitudinal flexibility Field experience is arranged to make the expatriate familiarise with the challenge of assignment Some organisations have now extended this idea to include cross-cultural training to family members, especially, children as they will be accompanying their parents Check Your Progress Mention the categories of pre-departure training as identified by Tung 6.4.4 Cultural Assimilators Cultural assimilator has become an important technique of cross-cultural training It is a programmed learning technique that is designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs and values of another culture These assimilators are developed for each pair of cultures: one culture where the candidate is currently working and the other culture is where he is proposed to be posted In most cases, these assimilators require the trainee to read a short episode of a cultural encounter and choose an interpretation of what has happened and why If the trainee’s choice is correct, he or she goes to the next episode If the response is incorrect, the trainee is asked to read the episode again and choose another response 125 Orienting and Training Employees for Global Assignments 126 International Human Resource Management MNC Training Many MNC training programmes, once patterned after the casual educational system found in the U.S are shifting to the more intense competitive, test-oriented, and resultoriented educational system used so well by Japan Overall, Japanese firms employ the most effective on-the-job training and developmental programmes in the modern business world The Germans (Saliven, 1993) are following the Japanese lead and are developing outstanding on-the-job training programmes For example, still, the German power tool company, has used apprentice training programmes to triple the productivity of its Virginia Beach, Virginia plant A similar apprenticeship training programmes are paying big dividends for Potter & Brumfield, Inc., another German-owned plant in the United States Developing and maintaining a qualified workforce is a prime directive in most developed nations A recent programme, including public education, relative levels of secondary schooling, and on-the-job training, computer literacy, and worker motivation The top ten nations, in order, were: Singapore United States Denmark Austria Germany Sweden Japan Netherlands Norway 10 Finland HCN Training There are many issues related to HCN training Consider the following case A multinational, as part of its cost leadership strategy, decides to build a production facility in Country X where labour costs are low It then finds it needs to invest heavily in training local employees, thereby automatically increasing the cost of that labour Not only does the unit cost of labour rise over time, but trained employees may well become attractive to its foreign and local competitors, who simply offer higher wages to lure them away If this ‘poaching’ of HCNs is successful, the multinational discovers that its competitors reap the training benefits while it receives little return for its investment in human capital Thus, the level of HCN competence has important training and cost consequences although these may not be initially recognized during country selection Mode of operation is another issue related to HCN training For instance, entering into a joint venture arrangement can lead to unexpected training costs if the local partner regards the joint venture operation as a convenient way of re-deploying surplus employees who may not have the skills required The multinational has to invest heavily in the training of the joint venture HCNs in order to achieve its strategic objectives for the foreign market, leading to costs perhaps not ‘factored in’ the original market-entry decision When it comes to HCN training programmes, given our understanding of cultural differences, it could be assumed that this is an area that the multinational would automatically delegate to the local operation To a certain extent, training programmes are localized, but there are many cases where multinationals have successfully replicated work practices in their foreign subsidiaries through intensive training programmes designed and implemented by headquarters Japanese multinationals such as Nissan and Honda have been able to train substantial numbers of HCNs in their U.S., U.K., and European subsidiaries with reasonable successes To save on costs, some multinationals are now using satellite technology to deliver custom-designed training courses from home-country locations (Givsti et al., 1991) International Training of HCNs HCNs can be transferred into the parent country, into either its headquarters or homesubsidiary operations There are various motives for HCN staff transfers: It facilities specific firm-based training The Pepsi-Cola International Management Institute is an umbrella system for the delivery of training programmes such as sales force management or production techniques for the manufacturing or Pepsi brands Fiat, the Italian automobile manufacturer, uses staff transfers as part of its training programme, with HCN recruits spending time at corporate headquarters While technical and managerial training may be the primary goal, there is often a secondary, yet equally important, objective of building a sense of corporate identity The Swedish telecommunications company, L.M Ericsson (Barham, etc 1990) has two levels of formal management programmes One caters to the top 300 managers in the group, the other the 1,500 middle managers As part of its approach, the company established the Ericsson Management Institute These types of corporate training centres serve as a useful venue for HCNs from various countries to meet and develop personal networks that facilitate informal communication and control Particular skills may be required in the subsidiary and the most cost effective way is to bring certain HCN staff into the parent operations For example, in the late 1980s when Ford Australia began manufacturing the Capri model—a sports car aimed at the U.S market—Australian production and engineering employees spent time in Ford’s U.S factories to quickly gain the necessary knowledge required to meet U.S safety regulations The presence of HCNs may assist in broadening the outlook of parent-company employees Also, it may be that HCNs have particular knowledge and skills that can be transferred into parent operations Cultural adjustment is inherent in international staff transfers, regardless of the direction of the transfer—that is, whether it is the PCN moving to a subsidiary, a HCN coming into parent operations, or transferring to another subsidiary In order to design and implement HCN predeparture training, local management, particularly those in the HR department, need to be conscious of the demands of an international assignment A related aspect is that HCNs require adequate language skills in order to gain the maximum benefit from parent-based training Lack of language competence may be a major barrier in terms of access to corporate training programmes since these are conducted in the parent/corporate language As a study (Marschan et al., 1997) a Finnish multinational—Kone Elevators—found, subsidiary staff who would have benefited from attendance at the corporate training centre in Finland were often excluded on the grounds of lack of competence in English, the corporate language Provision of corporate language may be an important component of HCN training Developing International Staff Foreign assignments have long been recognized as an important mechanism for developing international expertise—for both management and organizational development (Ondark, 1985) Many multinationals are conscious that they need to provide international experience to many levels of managers (regardless of nationality) and not just to a small cadre of PCNs One technique used to develop larger pools of employees with international experience is through short-term development assignment ranging from a few months to several years However, the Swedish-Swiss conglomerate ABB, have carried on the practice of developing small cadres of international employees rather than internationalizing everyone International job rotation, therefore, is a well-established technique for developing multinational teams and international operators It may be supported by PCN, TCN, and 127 Orienting and Training Employees for Global Assignments HCN attendance at common training and development programmes held either in the parent country, or regional centres, or both The Global Leadership Programme at the University of Michigan is an example of externally provided training programmes For a period of five weeks, teams of American, Japanese, and European executives learn global business skills through action learning To build cross-cultural teams, the programme utilizes seminars and lectures, adventure-based exercises, and field trips to investigate business opportunities in countries such as Brazil, China, and India The overall objective of the Global Leadership Programme is to produce individuals with a global perspective (Main, 1989) In line with a general trend towards an emphasis on work teams (Kirkman, etc 1997) there is a suggestion in the literature that multinationals would benefit from building on their inherent diversity to foster innovation, organizational learning, and the transfer of knowledge Fostering a sense of corporate identity and teamwork seems an important aspect of leverage resources and ideas from all parts of the multinational Individual Career Development There is an implicit assumption that an international assignment has per se management development potential; perceived career advancement is often a primary motive for accepting such postings (Dowling, 2001) Figure 6.5 attempts to illustrate a sequence that may be common to all expatriates—PCNs as well as HCNs who accept assignments to either the parent operations, or to other subsidiaries (thus becoming TCNs) Figure 6.5 follows the stages of expatriation from recruitment and selection to completion of the particular assignment The numerals are positioned at what have been identified as critical decision points For example, Decision Point occurs during recruitment and selection for a specific assignment, for an international assignment Decision Point is ‘deselect’ There may be some career considerations as to whether a voluntary withdrawal at the point would have a negative consequence upon the person’s future Such a perception may influence the individuals decision to accept rather than reject the assignment Predeparture Training International Assignment Reassignment Exit Organization Recruitment and Selection ○ ○ ○ ○ ○ ○ ○ ○ ○ Premature Return Deselect ○ ○ ○ ○ ○ ○ ○ ○ 128 International Human Resource Management ‘Parent’ Organisation Source: Dowling P J, International HRM (2001) Figure 6.5: Expatriate Career Decision Points Repatriation The expatriate may decide to leave the international assignment (as indicated in Decision Point 3—Premature Return) The individual is then assigned a position back in the ‘parent’ operation The premature return may or may not have career advancement consequences Alternatively, as indicated by Decision Point 4, the expatriate may decide to exit the organization—promoted by another job offer that is perceived to be better in terms of the person’s career There is a suggestion that turnover among repatriates may be as a consequence of a perceived lack of career advancement on the basis of the international experience Decision Point can be relevant at this stage, as indicated by the dotted arrow connecting “repatriation” with “exit organization.” 6.5 LET US SUM UP The cost of expatriate failure is very high Therefore, MNCs take great pains to select the right persons and provide them with appropriate training before their departure as well as on arrival in a particular country Once an employee has been selected for an expatriate position, predeparture training is considered to be the next critical step Some form of cultural preparation is indicated because, functional ability alone does not determine success A well-designed cultural awareness training programme can be extremely beneficial, as it seeks to foster an appreciation of the host-country’s culture so that expatriates can behave accordingly, or at least develop appropriate coping patterns The components of cultural awareness programmes vary according to country of assignment, duration, purpose of the transfer, and the provider of such programmes One useful technique in orienting international employees is to send them on a preliminary trip to the host country Combined with cultural awareness training, the preliminary visit is a useful component of a predeparture programme Language training is a seemingly obvious, desirable component of a predeparture programme Another component of a predeparture training programme is that of providing information that assists in relocation Practical assistance makes an important contribution toward the adaptation of the expatriate and his family to their new environment Cultural assimilator has become an important technique of cross-cultural training It is a programmed learning technique that is designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs and values of another culture 6.6 LESSON END ACTIVITY Assuming you accepted a foreign job, what should be the content of the pre-departure training for you and your family? 6.7 KEYWORDS Orientation: An inter-related set of planned activities designed to acquaint the new employee with key aspects of the organisation and the job in question Training and Development: Training and development result from a planned organisational effort to help employees to learn and to improve work behaviours Cultural assimilator: It is a programmed learning technique that is designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs and values of another culture Action learning: An approach to both individual and organisational learning based on the concept of learning by doing and the premise that knowledge can only be the outcome of action 129 Orienting and Training Employees for Global Assignments 130 International Human Resource Management 6.8 QUESTIONS FOR DISCUSSION Why is training necessary for expatriates, whether PCN or TCN? What factors should be taken into account for an effective pre-departure training programme? What are the types of cross-cultural training? Is it necessary that such a training be given to family members? What are the motives for HCN staff transfers to either headquarters or home subsidiary operations? How does one develop international staff and multinational teams? Check Your Progress: Model Answers CYP Approaches to Expatriate Training: (i) Action learning and experimental approach (ii) Transferability across cultures (iii) Organisational learning CYP Categories of Pre-departure Training: (i) Area studies programmes (ii) Cultural assimilators (iii) Language training (iv) Sensitivity training (v) Field experiences 6.9 SUGGESTED READINGS P.L Rao, International Human Resource Management, Excel Books, New Delhi, 2008 Briscoi, Schuler and Claus, International Human Resource Management, Routledge, 2008 Breuester, Sparrow and Vernon, International Human Resource Management (3rd edition) P J Dowling and D.E Welch, International Human Resource Management, Thomson, London, 2004  ... Rao, International Human Resource Management, Excel Books, New Delhi, 2008 Briscoi, Schuler and Claus, International Human Resource Management, Routledge, 2008 Breuester, Sparrow and Vernon, International. .. 2008 Breuester, Sparrow and Vernon, International Human Resource Management (3rd edition) P J Dowling and D.E Welch, International Human Resource Management, Thomson, London, 2004 ... 120 International Human Resource Management Check Your Progress What are the different approaches to expatriate training? 6.4 INTEGRATING BUSINESS STRATEGY WITH INTERNATIONAL