IHRM

–PROF MAHAK BALANI, DEPT. OF MBA, AIT

INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Developing Global Mindset: Global Leadership
MODULE 4 NOTES
Module 4: (7 Hours)
Developing Global Mindset: Global Leadership, Cross cultural context and international
assignees, Current scenario in international training and development, training & development of
international staff, types of expatriate training, sensitivity training, Career Development, repatriate
training, developing international staff and multinational teams, knowledge transfer in multinational
companies.

Training:
• Training aims to improve employees’ current work skills and behavior, whereas
development aims to increase abilities in relation to some future position or job.
• In this chapter, we examine how the international assignment is a vehicle for both
training and development, as reflected in the reasons why international assignments
continue to play a strategic role in international business operations.
• The role of training in preparing and supporting personnel on international assignments is
also considered.
• To reduce the direct and indirect costs inherent with expatriate failure, multinational
corporations are striving to improve their capability to manage their expatriates before,
during and after international assignments.
International Training and Development

• It shows the link between international recruitment and selection and training and
development activities
• Most expatriates are internal hires, selected within the MNC operations, indicated by the
dotted line
• Some expatriates are hires externally for international assignment.
International Assignments as a Training and Development Tool:
• Expatriates are more successful when their organizations train them to prepare for their
life and work abroad. Lack of training is a major cause of expatriate failure.


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

• Expatriates are trainers, as a part of knowledge and competence transfer between various
units.
• Expatriates show how systems and procedures work, ensure adoption, and monitor
performance of HCNs
• International assignments are a form of job rotation to gain a broader perspective –
management development, and to assist in developing a pool of capable global operators.

Role of Expatriate training:

• Expatriate pre departure training activities that are mainly concerned with developing
cultural awareness
• The success of international assignment depends on cultural adjustment and pre departure
training is considered to be the next critical step in attempting to ensure the expatriate’s
effectiveness and success abroad
• Pre departure training is indicated as a subset of general training, it advocates and assists
individuals to adjust to new culture
• A major objective of intercultural training is to help people cope with unexpected events
in a new culture
Main objectives of expat training:
• To create Cultural Awareness
• To reduce Expatriate's Failure rates
• For dealing with adjustment issues with regard to Expatriate, Spouse and family
Components of effective pre-departure training:
1. Cultural Awareness Programs:
• Employee must adapt to and not feel isolated from the host country
• Training program vary according to the country of assignment, duration, purpose
of transfer and the provider of such programs
• Learning process are based on type of job, country assignment and time
availability.
• If expected interaction and cultural difference between the expat and host country
is low, then training focus on job related issues than cultural issues, the level on
rigor is low
• If expected interaction and cultural difference between the expat and host country
is high, then training focus on job related issues and cultural issues, the level on
rigor is high
2. Preliminary visits:
Means sending them on preliminary trip for the candidates and spouse provides a preview
to host country to allow them to assess the suitability and interest in the assignment
• Provides more informed pre-departure training programs
• Also assists in initial adjustment process
• Average length of visit will be of one week
• Not done if the country known or is perceived as culturally close
• More practiced by Koreans, Japanese, Singaporeans than US
• Problem with the method is whether it is a part of selection decision or pre-departure
training.
3. Language training:
• Role of English-Lang. of world business


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

• MNCs of UK, USA, Australia use this excuse for not giving additional training in
language of host country
• Disadvantages of not knowing host country lang. (speaker controls what is communicated
and understood, responses are reactive than proactive)
Host country language skills and adjustment
• Can improve expatriate’s effectiveness and negotiating ability
• Better cultural adjustment
Knowledge of Corporate Language
• Facilitates reporting
• Expats. can become language nodes
The impact of Language on power:

4. Practical assistance: Another component of a pre departure training program is that of

providing information that assists in relocation. Practical assistance makes an important
contribution towards the adaptation of the expat and his or her family to their new
environment
5. Training for training role: Expat are often used because of lack of suitably trained staff
in the host location. Expat often find themselves training HCNs as their replacement. The
ability to transfer knowledge and skills in a culturally sensitive manner perhaps should be
an integral part of pre-departure training programs – particularly if training is part of the
expat’s role in the host country
6. TCN & HCN expat training: Some firms pre-departure training may not be provided to
TCNs being transferred to another subsidiary, and for HCNs transferred into the parent
country operations. Australian working in the Japanese subsidiary of US multinational:
Australians are TCNs in Japan. The Americans received cultural training about Japan
before they left the US, we were just given our plane tickets.

7. Provision of training for non-traditional expat assignment: Receive little or no

preparation as pre-departure training primarily due to shortage of time. Now CD based or
web based training is being provided but the % of companies doing this is small.

Effectiveness of Pre-departure Training:

§ Limited data on how effective such training is and what components are considered most
essential:


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

Ø Use of mixture of methods makes evaluation of which method is most effective
difficult to isolate
Ø Large diversity of cultures involved
Ø What works for one may not work for another
Ø Complex jobs in multiple cultural contexts
§ Integrated cross-cultural training exhibited cultural proficiency earlier and appeared to
have greater job satisfaction than those with lesser training.
Training Strategies:
Training strategies bridge the gap between the capability of individual and the role &
responsibility of the job, the four strategies are as follows:
1. MNCs make use of Expatriates for short term or long term international job assignment
2. The staffing orientation that is adopted in the subsidiary units influences to take up
training.
3. The control and coordination linkages that the parent country wishes to establish with the
subsidiary drives the training budget and the strategy
4. The role and responsibilities of the position determines the extent and content of training.

Expatriate Training:
• In selecting an expat for a global assignment, the focus is on ascertaining the culture
awareness and the fit for the host country’s culture.
• MNCs offers cross cultural training (CCT) to teach their expatriates, the host country’s
appropriate norms and behavior
• CCT are planned intervention designed to increase the knowledge and skills of expatriate
to live and work effectively in host country
Phases of (cross cultural training) CCT Program:

• Phase 1: Training Objectives:

▫ Bridge the cultural gap between Home and Host country
• Phase 2: Type of global assignment
▫ The type of overseas assignment shall have its effect on such HR activities
(selection, CCT and repatriation)
▫ Chief executive officers: manages, directs entire subsidiary operations.
▫ Structure reproducer: responsible of building/helping the foreign subsidiary
▫ Trouble shooter
▫ Operative personnel
• Phase 3: Determine Training Needs: needs assessment diagnoses present problem and
identifies future challenges to be met through training and development


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

▫ Organizational analysis: culture, policies, structure and strategy and
▫ Individual performance enhancement needs
▫ Analysis and identify the assignment for expat
• Phases 4: Establish goals and Measures
▫ Establish its goals and identify measures to assess the effectiveness of cross
culture training. The goals of CCT can be short term or long term, which need to
be detailed and be measurable terms
• Phase 5: Develop and deliver the CCT program
▫ Course content: the specifies of a CCT consist of language training, cultural
training
▫ Identify the training methods: 4 methods of training are didactic culture general
training. Didactic culture specific training, experiential cultural general training
and experiential cultural specific training
▫ Sequencing of sessions: it refers to timing of the training session:
▫ 1. Pre departure CCT: preparing & imparting training for Expat to taking up
International assignment.
▫ 2. Post arrival or In country: learning by experiencing the host country culture,
belief and values
Methods of CCT Program:

• Phase 6: Evaluating the effectiveness of CCT: assessment of it effectiveness, collecting

information necessary to make decision regarding program. Evaluation through
interviews, questionnaires or survey etc. Kirkpatrick model to evaluate the effectiveness
of training


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

HCN Training:

Cross-cultural Training:
• Cross-cultural training: increases the relational abilities of future expatriates and their
spouses and families
• Training rigor: extent of effort by both trainees and trainers required to prepare the
trainees for expatriate positions
§ Low rigor training: Short time period; Lectures and videos on local cultures;
Briefings on company operations.
§ High rigor training: Last over a month; Experiential learning; Extensive language
training; Includes interactions with host country nationals
Tung’s Contingency Framework for CCT Methods Selection:
• Tung (1981) proposes a contingency framework for the selection of CCT methods.


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

• This framework is based on 2 variables:
1. The degree of Interaction between the Parent and Host country
2. The culture novelty, implying how different is the culture of the expat from that of the
host country
• The interplay of three considerations:
• Job analysis, in terms of the extent of interaction with the local community;
• Target country, in terms of the degree of cultural similarity between the home country
and the host country;
• Personal characteristics, in terms of the trainee and his spouse’s ability to function in a
foreign cultural setting.
The Mendenhall, Dunbar and Oddou Cross-cultural Training Model:

• The Mendenhall, Dunbar and Oddou Cross-cultural Training Model. The elements of
‘degree of interaction’ and cultural novelty are retained from Tung’s model.
• The framework includes 3 key elements
1. Training methods
2. Training rigour
3. Duration of training.
• If the expected level of interaction is low and degree of similarity between individual
home country and host country is high, then length of training should be less than 1
week. Then training methods are lecture, films and books.
• If individual is going overseas for a period of 2 -12 months and expected to have some
interaction with host country, then training rigor should be high and its length of training
is 1 – 4 weeks. Then training methods would be cultural assimilators and role plays
• If individual is going fairly novel and different host culture and expected degree of
interaction is high, the level training rigor should be high and training last as long as 2
months. Then training methods are sensitivity training, field experience and intercultural
workshops


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

Black and Mendenhall’s Model:
• This model combines the methods of expat training and evaluation of their success.
• Model is built on 3 steps
1. Individual become aware of important cultural behavior
2. Individual think about what he/she has learned, seen and heard
3. The expat practices the important behavior

Cultural Awareness Training and Assignment Performance:

• It stresses the importance of attention paid by the potential expatriate to the behavior and
outcomes of a cultural awareness training program
• The individual’s ability and willingness to retain learned behavior; and their reproduction
as appropriate in the host location
• Poor performance could be addressed by clarifying incentives for more effective
reproduction of the required level of behavior, or by providing additional cultural
awareness training during international assignment


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

• We combine adjustment and performance and link it to the performance management
system
Cultural Awareness Training and Assignment Performance: Social learning theory”
• Attention: In order to learn, observers must attend to the modeled behavior. Attention is
impacted by characteristics of the observer (e.g., perceptual abilities, cognitive abilities,
arousal, past performance)
• Retention: In order to reproduce an observed behavior, observers must be able to
remember features of the behavior.
• Reproduction: To reproduce a behavior, the observer must organize responses in
accordance with the model. Observer characteristics affecting reproduction include
physical and cognitive capabilities and previous performance.
• Motivation: The decision to reproduce (or refrain from reproducing) an observed
behavior is dependent on the motivations and expectations of the observer, including
anticipated consequences and internal standards.
Career Development :

• A career refers to the individual sequence of attitudes and behavior associated with work-
related experiences and activities over the span of the person’s life.
• Career development is the process by which employees progress through a series of
stages, each characterized by a different set of development tasks, activities and
relationships
Repatriation:
Repatriation: “Refers to the termination of the overseas assignment and coming back to the home
country – to the country where the HQ is located or to the home country subsidiary from where
he/she was expatriated.”

• Expatriation process also includes repatriation: the activity of bringing the expatriate
back to the home country
• Repatriate: “Person returning to home country after completing international
assignment.”
• The multinational’s ability to retain current and attract future expatriates is affected by
the manner in which it handles repatriation.

Repatriation:


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

Repatriation Process:

1. Preparation – Developing plans for the future, and gathering information about the new
position
2. Physical relocation – Removing personal effects, breaking ties with colleagues and
friends, and traveling to the next posting, usually the home country
3. Transition – Settling into temporary accommodation where necessary, making
arrangements for housing and schooling, and carrying out other administrative tasks (e.g.,
renew driver’s license, applying for new health insurance, banking, etc.)
4. Readjustment – Coping with changes (e.g., company changes, reverse culture shock,
career demands, etc.)

Factors influencing repatriate adjustment:


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

Repatriation Program:
ü Preparation, Physical relocation and transition information
ü Financial and tax assistance
ü Re-entry position and career path assistance
ü School system and children’s education and adaptation
ü Work Place changes
ü Stress management, communication related training
ü Establishing networking opportunities
ü Help in forming new social contracts
Repatriate Training:

Stages of Reverse Cultural Shock:


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

Repatriate Training:
1. Dealing with Reverse Culture Shock. Repatriates were often thrown back into their jobs
with no discussion of their international assignments. Research has shown that a home culture
can seem strange after having spent a period of time negotiating a new culture.
2. Transferring knowledge. Sound repatriate training should include time for the repatriate to
discuss how to transfer the knowledge he or she has learned. This may best be done on an
informal, just-in-time basis during a special project, or during meetings with the boss, or during
special meetings of their team.
3. Mentoring expatriates. The repatriate can serve a key role in helping the organization
develop a global workforce by serving as a mentor to expatriates going to the same country or
part of the world. The information exchange between the repatriate and expatriate can help
ensure a positive experience for the expatriate by alerting him or her to the challenges faced
when working abroad.
4. Conducting repatriate forums. Organizing a group of repatriates who can share their
knowledge of international business during regularly scheduled presentations gives a clear signal
to all employees that global experience is valued.
5. Providing career paths. The strain and uncertainty of the overseas assignment can be reduced
when the expatriate knows what career opportunities are available upon return. This knowledge
also can create a much smoother transition once the employee returns home.

The Use of Mentors:

• Aims to ease the ‘out-of-sight, ‘out-of-mind’ feeling by keeping expatriate informed
• Mentor should ensure that the expatriate is not forgotten when important decisions are
made regarding positions and promotions
• Effective mentoring needs managing
• Mentoring duties include:
▫ Maintaining contact with the expatriate throughout the assignment
▫ Updating developments in the home country
▫ Informing management developments
▫ Providing assistance in the repatriation process
The readjustment challenge:


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

Managing Repatriation:
• Treat as re-expatriation : similar to expatriation plan and execute systematically
• Repatriation program : provide mentoring for finding a new role, information on the
challenges as a result of the repatriation, provide assistance
• Repatriation strategies : time-bound expatriation helps provide better preparedness where
the expat is aware from the beginning when his/her assignment ends and can plan for
next steps supported by the organization
How international teams benefit the multinational:
v Fosters innovation, organizational learning and transfer of knowledge
v Assists breaking down of functional and national boundaries
v Encourages diverse inputs
v Assists in developing broader perspectives
v Develops shared values

Developing Staff through International Assignments:

§ Management Development
• Individuals gain international experience which assists career progression: short-
term missions for cadre team, job rotation
• Multinational gains through having a pool of experienced operators on which to
draw for future international assignments: build a global team
Expatriate Career Decision Points:


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

International Cadre: Another Choice:

• Separate group of expatriate managers who specialize in a career of international
assignments
§ Have permanent international assignments
§ Move from international assignments to international assignments
§ Recruited from any country
§ Sent to worldwide locations to develop cross-cultural skills
Developing Staff through International Assignments (2):
§ Organizational Development
• Accumulating a stock of knowledge, skills and abilities: fostering innovation and
proficiency
• Developing a global mindset: fostering a sense of corporate identity despite
cultural diversity
• Expatriates as agents of direct control and socialization in the transfer of
knowledge and competence.


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT

Knowledge transfer in multinational companies:

• Knowledge: Information combined with experience, context, interpretation and reflection
forms a high value form of information
• Different types of Knowledge: Explicit and Implicit/Tacit knowledge
• knowledge transfer is the practical problem of transferring knowledge from one part of
the organization to another.
• Knowledge transfer seeks to organize, create, capture or distribute knowledge and ensure
its availability for future users
• The act of transferring knowledge from one individual to another by means of mentoring,
training, documentation, and other collaboration.
• Multinational companies are an important playground for learning and for cross-border
knowledge transfer.
• They also play critical roles in knowledge sharing, since mergers and acquisitions
provide excellent opportunities for both parent and subsidiary to renew their knowledge
base and to add knew knowledge to it
• Expatriates are seen as an important means of identifying new knowledge and
transferring tacit knowledge in multinational corporations
• knowledge transfer of multinational companies is the knowledge sharing ability of the
sharing person.
• Knowledge flows within multinational companies include, along with the traditional
vertical knowledge transfer from the headquarters to the subsidiaries, also knowledge
transfer in the opposite direction: knowledge flows from subsidiary to headquarters, the
so-called reverse knowledge transfer.


IHRM –PROF MAHAK BALANI, DEPT. OF MBA, AIT