International Training and Development Chapter Five International Training and Development

Chapter Learning Objectives After reading this chapter, you should be able to: discuss the importance of the role of training in supporting expatriate adjustment and on-assignment performance identify the components of effective pre-departure training programs such as cultural awareness, preliminary visits and language skills, along with relocation assistance and training for trainers explain the effectiveness of pre-departure training

Chapter Learning Objectives define the developmental aspect of international assignments describe the process of training and developing international management teams identify trends in international training and development

Chapter Vignette Are You Ready? Expatriates require pre-departure training to deal with cultural adjustment foreign language and support including: preliminary visits relocation assistance training for trainers

Terms language training international English cultural awareness corporate language cultural awareness pre-departure training preliminary visits training development international business travelers international ‘cadre’

HR Core Competence and Source of Competitive Advantage Human resource accumulated stock of knowledge, skills, and abilities that the individuals possess, which the firm has built up over time into an identifiable expertise. Training and development way in which the multinational builds its stock of human resources – its human capital.

Training process aimed at improving employees’ current work skills and behaviour

Development process aimed at increasing employees abilities in relation to some future position or job

International Assignments Provide T&D T & D plays a strategic role in international business operations

International Assignments Provide T&D Expatriates are trainers through transfer of knowledge ensure that systems and processes are adopted gain management capabilities

International Training and Development (Figure 6-1)

Role of Expatriate Training Intercultural Training objective is to help people cope with unexpected events in a new culture remains the most common form of pre-departure training

Availability of Cross-Cultural Training in MNEs (Table 6-1)

Components of Effective Pre-Departure Training Programs cultural awareness preliminary visits language skills relocation assistance training for trainers

Cultural Awareness Programs Expatriates learn to adapt to and not feel isolated from the host country appropriate behaviours and coping patterns understand the host‑country value and belief system

Cultural Awareness Programs Components of cultural awareness programs vary according to country of assignment duration purpose of the transfer provider

Tung-Cultural Awareness Programs Based on different learning processes type of job country of assignment time available

Tung-Cultural Awareness Programs Area studies programs that include environmental briefing cultural orientation culture assimilators language training sensitivity training field experiences

Tung-Cultural Awareness Programs if the expected interaction and dissimilarity between the individual and the host culture is low, then training should be task‑ and job‑related and rigor low.

Tung-Cultural Awareness Programs if the expected interaction and dissimilarity between the individual and host culture was high, then training should focus on cross‑cultural skill development as well as on the new task and rigor high.

Tung-Cultural Awareness Programs Training should have more emphasis on life-long learning not ‘one-shot’ programs with an area-specific focus foreign language training levels of communication competence, not just verbal

Tung-Cultural Awareness Programs cross-cultural training assists in managing diversity the preview of the expatriate position should be realistic, as this facilitates effective performance

The Mendenhall, Dunbar and Oddou Cross-cultural Training Model (Figure 6-2)

Black and Mendenhall -Cultural Awareness Programs Three aspects of social learning theory attention, retention, reproduction influenced by individual differences in expectations and motivation, and the incentives to apply learned behaviors

Black and Mendenhall -Cultural Awareness Programs recognizes that the expatriate’s willingness and ability to act upon that training in the new environment is crucial to effective performance

Cultural Awareness Programs monitoring and feedback are important components of individual skill development, adjustment and performance

Cultural Awareness Training and Assignment Performance (Figure 6-3)

Preliminary Visits Well‑planned trip to the host country for the candidate and spouse allows them to assess their suitability for and interest in the assignment be introduced to the business context be encouraged to do more pre-departure preparation begin to adjust to the host location

Language Training Not given a high priority English is the language of world business ability to speak the host country’s language improves the expatriates effectiveness and negotiating ability able to speak the corporate language can give expatriates added power in the subsidiary

Language Training There should be more emphasis on the provision of foreign language training the levels of communication competence, not just verbal, so the person becomes bicultural and bilingual.

Practical Assistance Family adjustment support and relocation services can include housing issues household goods movement destination services settling in assistance yearly home visits eldercare assistance taxation policy

Practical Assistance visas and work permits relocation allowance compensation and benefits education assistance for families health and medical insurance and issues spousal employment and career assistance hardship allowances

Practical Assistance automobile allowances family preliminary visits and orientation factual knowledge about the other country and travelling abroad adjustment and adaptation to the foreign country host countries value and belief systems safety, human rights and other required code of conducts

Training for The Training Role Ability to transfer knowledge and skills in a culturally sensitive manner utilize knowledge transfer process of repatriates train expatriates on code of conduct train HCN and TCNs

Perceived Value of Cross-Cultural Preparation of Expatriates (Table 6-2)

Developing Staff Through International Assignments Outcomes management development organizational development

Developing Staff Through International Assignments important mechanism for MNEs to develop international expertise, cadre and a global mindset through management and organizational development

Developing Staff Through International Assignments ensures global competitiveness through the development of a globally-oriented and experienced management cadre

Management Development individual career progression pool of experienced international managers for future international assignments

Organizational Development a stock of knowledge, skills and abilities for future growth global mindset expatriates agents of control, socialization, knowledge transfer

Developing International Teams Through International Assignments (Figure 6-4)

MNEs Benefit from Using International Teams A mechanism for fostering innovation, organizational learning and knowledge transfer enhancing horizontal communication encouraging diverse inputs into decisions developing a global perspective developing shared values and control through socialization

Discussion Questions What are some of the challenges faced in training expatriate managers? How does an international assignment assist in developing a ‘cadre’ of international operators? Why is it necessary to have such a ‘cadre’? Why do some MNEs appear reluctant to provide basic pre-departure training?

Case: An International Career Move 1. What are the different personal and professional aspects John needs to consider before making a decision? 2. Evaluate the training provided by John’s company. What kind of additional training would you offer to John (if any)? 3. If John decides to accept the international assignment with DFB and take his wife and kids with him what type of additional training should DFB offer to him?