Developing a Global Workforce

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Developing a Global Workforce

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  • Lecture 8: Developing A Global Workforce

    Connie ZHENG

  • AgendaUnderstand the importance of T &D of global workforce in MNCs;Conduct basic training need analysis for international employees;Grasp the process of T & D of international employees;Examine different components of pre-departure training programs for expatriates;Appreciate different training methods;Understand the issues of international training of HCNs;Evaluate various instruments for developing a global workforce.

  • Importance of Training & Development of International StaffMinimize expatriate failure rateglobalization processinternational competitionneed to market products worldwideinternational mergers & acquisitionnew market access opportunities (Easter Europe, China and former USSR)Previous training focusmarketing resource application; technology transfer; organizational configuration, not on addressing HR needsNew tasks & responsibilitiesadaptive ability; cultural sensitivitywell-equipped; best people sent abroad.

  • Training Needs AnalysisType of TrainingTechnical Training

    Management Training

    Domestic information

    Cross cultural training

    Language trainingExampleTechnology level, cultural and attitudinal constraints on technology transfer, leadership skills, handle responsibilties

    Organisational structure, spans of control, reporting relationships, communication structures,administrative procedures, government-business relationships, business environment, marketing issues, HRM issues, investment issues, ethnical considerations?

    Accommodation, schools, hospitals, medical and social services, shopping facilities and domestic services, issues related to vehicles, customs and procedures, insurance

    Information about other cultures, how to adjust

    Few words or phrases, basic understanding, needs of use of interpreters?

  • Components of Pre-departure Training ProgramCultural awareness training

    Preliminary visits

    Language instruction

    Practical assistance

  • Cultural Awareness ProgramsBeneficial to foster an appreciation of the host culture,Various focuses according to country of assignment, duration, purpose of the transfer and the provider of such programs.Contents of cultural awareness programenvironmental briefing and cultural orientationcultural assimilators;language training;sensitivity training; andfield experiences (Tung 1981)

  • Preliminary Visitsuseful techniques in orienting international employeesprovide expatriate and family members with a preview that allows them to assess their suitability for and interest in the assignmentserve to introduce candidates to the business context in the host locationencourage more informed pre-departure preparationexposure to the expatriate community.potential problem - part selection decision and part pre-departure training.

  • Language TrainingThe role of English as the language of world businessthe importance of language training is often downplayed by those English-speaking countriesHost-country language skills and adjustmentthe ability to speak a foreign language improves expatriates effectiveness and negotiating abilityKnowledge of the corporate languageimpact of adopting corporate language upon HRM activities within the MNCs, e.g. control v. coordination, standardization of information and reporting system.

  • Wright & Wright (1994) The other speaker controls what is communicated and what is understood. The monolingual English speaker has less room to maneuver, no possibility of finding out more that he/she is given. His position forces him to be reactive rather than proactive in the relationship. What he says and understands is filtered through the other speakers competence, over which he has no control (p. 5)

  • Practical AssistanceProvides information that assists in relocation

    Makes an important contribution toward the adaptation of expatriates and their family

    Utilises relocation specialists to provide this area of assistance

    May include language training or other types of local orientations.

  • T & D for HCNs and TCNs The shortage of international managers is becoming an increasing problem for international firms. While the faster pace of internationalisation was cited as the primary reason for shortages, failure to recruit effectively, retain and develop host country managers is another key reason to explain shortages of international managers

  • Issues of HCN TrainingThe issue of the expense of cheap labour;The level of HCN competence relating to training and cost of MNCs;The issue of mode of operation v. HCN training e.g. JV partners request of training unskilled labour.Training as incentives to attract and retain staffLocal v. HQ trainingtechnical training for operating employees in areas where certain skills and work practices are strategically essentialSatellite technology to deliver training.

  • T & D for HCNs and TCNs A number of factors make recruitment of HCN managers difficult, they are:lack of knowledge of local labor markets;ignorance of the local education systems and the status of qualificationslanguage and cultural problems at interviewstrying to transfer recruitment methods which work well at home to foreign countries

  • T & D for HCNs and TCNs Management training provided to HCNs and TCNs should address:need to avoid the mistake of simply exporting Parent country T & D programs to other countriesthe management training for host country and TCNs need to be linked to the strategic situation in each country as well as to the overall strategy of the firmthe need to utilise much further the practice of developing HCN managers through developmental transfers to corporate headquarters

  • International Training of HCNsFacilitates specific firm-based training (e.g. technical, operative, managerial);

    Builds a sense of corporate identity through developing informal networks;

    Develops particular skills required in the most cost effective way (e.g. Ford - Capri);

    Broadens the outlook of domestic (HQ) employees about the firms diversified international workteam;

    Possibly transfer HCNs specific knowledge and skills to HQ.

  • Methods for Developing a Global WorkforceA team of international managers should cover PCNs, TCNs and HCNs for effective global operation;Developing a team with international experience through short-term assignments;International job rotation is one of techniques used to develop multinational teams and international operators;External training program using action learning;International meetings in various locations served as a way to foster interaction and personal networks that help build a global team;Emphasizes diversity for innovation, organizational learning and the transfer of knowledge.

  • The aim in a global business is to get the best ideas from everywhere. Each team puts up its best ideas and processes - constantly. That raises the bar. Our culture is designed around making a hero out of those who translate ideas from one place to another, who help somebody else. They get an award, they get praised and promoted.

    Jack Welch, CEO of GE

  • Effective Knowledge TransferCreation of global teams and networks of experts through the actual mobility of people;Maintaining effective communication systems and databases that people can draw from;Having a systematic evaluation of individual's experience upon completion of an international assignment and ensuring that where valuable knowledge has been acquired, this is built into the organizational routines and taught to others.Kamoche, 1997, p. 220

    Assumption that the more rigorous training will lead to lower incidence of poor performance.

    Information flow, strategy and control requirements will all affect the level of rigorous training can be taken by MNCs.Explain the systematic training cycle from Baumgarten (1995, p. 209)

    Technical might be related to Baumgardens ideal of job-related variables. Management training related to organizational variables.

    Domestic: situational variables

    cross-cultural/language - personal variables

    It must be aware that possible variations in expatriate training. Tung (1981) proposed a contingency framework for deciding the nature and level of rigor of training. Two determining factors were the degree of interaction required in the host culture and the similarity between the individuals native culture and the new culture.

    Mendenhall, Dunbar and Oddou (1987) propose three dimensions - training methods, low, medium and high levels of training rigor and duration of the training relative to degree of interaction and cultural novelty that are used as guidelines for determining an appropriate program.

    Black and Mendenhall (1989) thought the earlier studies are tow cultural in nature, with little integration of the individuals new tasks and the new host culture, so they used Banduras social learning theory and prior cultural awareness training models, and proposed 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 behaviors in the foreign location. This approach recognized that effective training is only the first step and that the expatriates willingness and ability to act on that training in the new environment is crucial to effective performance.

    But again, black and Mendenhall ignore the time factor and other contextual factors such as cultural toughness, length of assignment and the nature/type of the job - may have a bearing on the content, method and processes involved in the cultural awareness training program. (see also the figure in Baumgarten, 1995, p. 218)1989 survey by Columbia university of 1500 senior executives in 20 countries indicated that trained in a foreign language is important for Non-US respondents (64%) and 19% of the US respondents.

    Another study by Fixman (1990) also indicated that foreign language skills were seldom included as part of cross-cultural understanding and that language problems were largely viewed as mechanical and manageable problems that could be easily solved.

    Pucik (1985) comments on diminishing MNCs linguistic capacity could have significant strategic implication. For instance, it limits the MNCs ability to monitor competitors and process important information. Translation services, particularly those external to the firm, cannot make strategic inferences and firm-specific interpretations of language specific data (Eg. Russia volka and meat v. spirit and flesh, no standing v. sitting down).

    Fixman raises the question of protecting important technology in international JV activities: it would seem that the less one understands of a partners language, the less likely one is to detect theft of technology.

    A recent study by Tung-Arthur Adnersen (1997) indicated that the ability to speak the local language regardless how different the culture was to their home country, was as important as cultural awareness in their ability to adapt the perform on assignment. Knowledge of the host-country language can assist expatriates and family members gain access to new social support structure outside of work and the expatriate community.They point out in studying British firms that to accept English as the defacto language of international business gives the advantage to the other person:

    Disregarding the importance of foreign language skills may reflect a degree of ethnocentrism - Wright & Wright called for use of international English rather than poor and broken English. Macquarie University advanced in collecting spoken English by Asian

    Hall and Gudykunst (1989) showed that the lower the level of perceived ethnocentrism in an MNC, the more training it provides in cultural awareness and language training.

    Pricewaterhowuse survey 1997-98 indicated that the importance of language training has been picked up the MNCs, they even extend the training to family members, spouse.

    As a result of the increased global competitive pressures, and growing awareness of its strategic and operational importance, more MNCs are requesting business schools to include foreign languages in their curricula and are giving hiring preference to graduates with foreign language skills.Theoretically, pre-departure training should also be provided for TCNS, but often, this is the area of neglect. Such omission could create perceptions of inequitable treatment in situations where PCNs and TCNs work in the same foreign location. One Australian working in the Japanese subsidiary of a US MNC comments: we were the third class in Japan. The American received cultural training about Japan, we were just given plan tickets.To save costs, some MNCs are now using satellite technology to deliver custom-designed training courses from home-country locations.The last one has been argued that this type of international transfer exposes HCNs and TCNs to the headquarters corporate culture and facilitates their developing a corporate perspective, and it is very effective in helping to develop global management teams, is a necessary part of successfully operating a truly internationalised firm.

    It is often hard to bring foreigners to head office. The type of incentive and compensation packages for those hard-to-move high potential managers will also be an important dimension in a companys ability to bring people to the corporate office.Cultural adjustment is inherent in international staff transfer. HCNs require cultural training also. Besides, adequate language skills is prerequisite for transfer training. A study of a Finnish company indicates that lack of language competency may be a major barrier in terms of access to corporate training program.Successful companies such as Swedish-Swiss conglomerate ABB practice developing a small cadre of international employees rather than internationalizing everyone.

    The global leadership program - 5 week, learn global business skills by seminars, lectures, adventure-based exercises and field trips to investigate business opportunities in countries such as Brazil, China and India. The objective is to produce individuals with a global perspective. But the success of the programs depends on participants being able to apply these skills in their home location and assist in the development of multinational, cross border and cross-functional teams.

    Kamoche (1997) also criticized that previous studies on IHRM much focus on knowledge transfer from HQ to subsidiaries, rather than the other way around, and called for adopting the approach of organizational learning, so that firm is able to create HR capabilities which reflect the firms core competence in the pattern of policies and practices pertaining to selection, appraisal, training, rewarding and career management.A concept of individual learning should be embedded in a concept of group learning, which in turn should be embedded in a concept of organization learning.

    Individual level of learning is concerned with interpreting;the group level with integrating; andthe organizational level with institutionalizing (Inkpen & Crossan, 1995, Believing is seeing: JV and organizational learning, Journal of Management Studies, 32:5, 595-618.)

    hence, effective communication systems and a willingness to challenge traditional wisdom are the cornerstones of the mechanisms for the diffusion of knowledge.

    There are a number of research issues remained:1) under which circumstances, some learning mechanism are more suitable than the others;2) integrating process of group-level learning may be appropriate where teamwork exists, but in the case of individuals working on their own, learning might proceed by direct coaching or through mentoring3) a closer examination of the relations between subsidiaries a d sub-units in terms of power structure, dependencies and conflicts in the learning process4) in the area of comparative HRM, through planned transfer of management practices from one country to another can be quite complex if need to take cultural consideration, communication problems and methodological issues into to account.