INTERNATIONAL HUMAN RESOURCE MANAGEMENT

1. INTERNATIONAL HUMAN RESOURCE MANAGEMENT Week 5 IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

2. Training & Development • Human Resources are the most valuable resource in any organization • Human Resources cannot exist in a static state. The pool of knowledge, skills and abilities which individuals possess and have accumulated over time, and which is a crucial input for the organization, must be nurtured and promoted by organizations • Training and Development is the tool for improving the quality of an organization’s human resources IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

3. Training & Development • Training aims to improve current work skills and behaviour (current focus) • Development aims to increase an employee’s abilities in relation to some future position or job (future focus) IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

4. International Training & Development Recruitment & Selection International Team TRAINING DEVELOP- MENT Predeparture Training International Assignments External Hiring IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

5. Expatriate Training • Training is considered as an investment in boosting an expatriate’s performance • Expatriate training prior to dispatch to the foreign assignment location includes creating cultural awareness, especially in relation to assignments meant for “culturally tough” locations (learning to cope with unexpected events) • Research studies undertaken over the past approx. 20 years indicate that many organizations neglect to provide expatriates with adequate predeparture training, whereby differences exist between US, European and Japanese organizations • More organizations have started considering the requirements of the spouse and family in their predeparture training programs IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

6. Components of Predeparture Training Programs: Cultural Awareness • The goal of cultural awareness programs is to enhance the expatriate’s understanding of the host country so that he or she can adjust and behave accordingly, and avoid getting into difficult situations • Cultural awareness programs do not have a standard, universally applicable format, rather, they depend on factors such as the country of assignment, nature of the expatriate’s job, available time to undertake training • Typical training elements include things like area studies, cultural considerations, language skills, sensitivity training and field experiences IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

7. Components of Predeparture Training Programs: Cultural Awareness • Tung has proposed the following training framework for expatriates: • If the expected interaction between the expatriate and members of the host culture is low, and if the degree of cultural dissimilarity between the expatriate’s culture and the host culture is also low, then cultural issues in training can take on secondary importance in relation to task or job-related issues. The level of training rigour can be low in this case • If the expected interaction between the expatriate and members of the host culture is high, and if the degree of cultural dissimilarity between the expatriate’s culture and the host culture is also high, then cultural issues should be correspondingly high on the expatriate’s training agenda. The level of training rigour can be moderate to high in this case IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

8. Components of Predeparture Training Programs: Cultural Awareness • Mendenhall & Oddou have proposed a modified version of Tung’s training framework for expatriates • According to Mendenhall & Oddou, there are three dimensions: • Training Methods • Levels of Training Rigour (low, medium, high • Duration of the Training (relative to degree of interaction and culture novelty) IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

9. Components of Predeparture Training Programs: Cultural Awareness • If the expected interaction between the expatriate and members of the host culture is low, and if the degree of cultural dissimilarity between the expatriate’s culture and the host culture is also low, then the level of training rigour can be low and training could last for less than a week (cultural briefings, lectures, movies, books) • If the expatriate is going abroad for a longer period (2 – 12 monthes) and is expected to have some interaction with members of the host culture, then the level of training rigour can be higher and training could last longer (1 – 4 weeks) (cultural briefings, lectures, movies, books, role plays) IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

10. Components of Predeparture Training Programs: Cultural Awareness • If the expected interaction between the expatriate and members of the host culture is high, and if the degree of cultural dissimilarity between the expatriate’s culture and the host culture is also high, then the level of training rigour can be high and lasting up to 2 months (see methods above and also sensitivity training, field experiences, inter-cultural experiential workshops) IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

11. Components of Predeparture Training Programs: Preliminary Visits • Expatriates are sent to visit their host country before being sent there on an assignment • The purpose of a preliminary visit is help expatriates to assess their suitability for, and their interest in the assignment, introduce them to the business context, and to make better predeparture preparations • Research indicates that many organizations make use of the tool of preliminary visits for expatriates, or would consider its use • Generally, preliminary visits are not offered to expatriates if the expatriates are already familiar with the country, or if the country is considered culturally close IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

12. Components of Predeparture Training Programs: Language Training • Language training is an important aspect of any predeparture training program • Advantages of using the English language in global business • Widespread application • concentration of economic and corporate power • Disadvantages of using English in global business: • Tendency to rely exclusively on English and not to learn other languages • Foreign partners speak both English and their own languages and have an advantage over English-speakers • Difficulty to monitor some environmental factors such as competitors or protecting important technology in dealing with foreign organizations and in foreign locations IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

13. Components of Predeparture Training Programs: Language Training • Knowledge of the host country’s language offers several benefits: • Expatriate performance and negotiating ability is enhanced • Expatriates have easier access to important data and information needed for their assignments (for example, data and information on the host country’s economy and economic indicators, market structure, competition, investment climate, political trends) • closer direct interaction with host country stakeholders is possible • Research studies indicate that expatriates usually accord high importance to speaking the language of their host countries as a means of not only performing better on their assignments, but also for forming social support structures and in associating with the rest of the expatriate community • Language skill-building is often omitted from predeparture training programs because of the time factor and the difficulty of monitoring employees’ language skills IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

14. Practical Assistance for Expatriate and his Family • Providing the expatriate and his family practical assistance with the assumption of the new assignment, can relieve anxiety and pressure, and overcome negative feelings towards the host country • Types of practical assistance include: • Relocation Assistance • Local Orientation • Language Assistance • Some private companies are providing expatriate relocation and orientation services IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

15. Training of HCNs and TCNs • In theory, all expatriates should be provided with adequate predeparture training prior to their dispatch on an international assignment but • In practice, organizations often accord priority to training their PCNS, while (comparatively) neglecting the training needs of their HCNs and TCNs IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

16. Training of HCNs: Some Considerations • Often, organizations localize the training of their HCNs • In some instances, notable where skills and work practices are considered strategically important, HCNs may be trained in other subsidiaries in programs which are designed and implemented by the organization’s headquarters (Nissan and Honda example) • Training has the inherent danger, that trained employees may be wooed away from an organization by competitors with the promise of higher salaries and better opportunities IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

17. Training of HCNs: Some Considerations • There are several good reasons for transferring HCNs to the organizations headquarters or home-subsidiary units:” • Providing technical and managerial competency training (Pepsi example) • Building a sense of corporate identity (Ericsson example) • Personal networking • Transfer of particular skills (Ford Australia example) Note: HCNs must have good command of the corporate languagein order to participate in the training programs! IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

18. International Staff and Teams • Developing truly international teams with the corresponding level of experience involves providing the requisite training not only to PCNs, but also to non-PCNS (HCNs, TCNs) • Several techniques are used to develop international teams, including international job rotation and common attendance at training training programs, international meetings and networking amongst managers IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

19. Individual Career Development Predeparture Training International Assignment 5 – Reassign- ment 1 – Recruitment & Selection 4 – Exit Organization 3 – Premature Return 2 - Deselect Parent Repatriation IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan