Unit - 3

Training and Development

 Basic idea
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.
 Training and Development aims
 Gives employees the knowledge, skills, and
abilities to perform successfully.
 Improves the adaptation to local conditions
 Helps managers and employees acquire
international skills and in-depth knowledge of
local markets
Understands how training must be adapted to host
country workers
Shows the importance of Human capital:
Motorola, McDonald’s Hamburger & Disney
Universities
Training and Development Needs

Need for training and development varies by

country.
Differences in training and development due to:
 Differences in educational systems
 Values regarding educational credentials
 Cultural values regarding other personnel practices
 Differences in institutional pressures: Europe vs USA
Training Techniques
 Area studies, that is, documentary programs about the country’s
geography, economics, sociopolitical history, and so forth
 Culture assimilators, which expose trainees to the kinds of
situations they are likely to encounter that are critical to
successful interactions
 Language training
 Sensitivity training
 Field experiences – exposure to people from other cultures
within the trainee’s own country
 International Assignments as a Training
and Development Tool
Expatriates are trainers: transfer of knowledge and
values to HCNs (subsidiaries’ employees)
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.
International Training and Development
Components of Effective Pre-departure Training

Cultural awareness programs: foster the understanding

of the HC culture
Preliminary visits: provide a preview to allow the
employee to assess his suitability for the job
Language training: English, corporate language
Practical assistance: local orientation
Training for the training role : job-related aspects,
ways to approach tasks and problems
TCN and HCN expatriate training: weigh costs,
delegation to the local partner,
Non-traditional assignments and training : specific
universities, e-learning
 Effective Pre-departure Training: a
contingency framework
1. The level of expected interaction between the
expatriate and the HCNs: High or low; need of
cultural coping is lower if this level is low; so
focus on technical skills
2. The degree of dissimilarity between the
individual’s native culture and the host culture :
high or low; need of more cross-cultural
development if this degree is high
Cross - Cultural Training
MNC’s offer cross – cultural training
to teach
their expatriates, the host country’s
appropriate
norms and behaviors.
Cross-cultural Training
 Cross-cultural training: increases the relational
abilities of future expatriates and their
spouses and families
 Training Rigor (Strictness): 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.
Benefits and Drawbacks of CCT
Merits Demerits

Increase chances of success Develops a false sense of

in global assignment. confidence among
employees.
Provides a comprehensive May not remove cultural
global perspective for biases and prejudices.
managers.
Instills a sense of May not be taken seriously
confidence into people. by the recipients.
Benefits and Drawbacks of CCT
(Contd.)
Merits Demerits

Foreign employees can be May not make a visible

managed better. difference in business
volumes.

Reduces culture shock due Can never fully prepare an

to frequent travels abroad. assignee to face real
problems.
Phases in CCT Programme
1. Identify training objectives
2. Identify the types of global
assignment
3. Determining the cross-cultural
training needs
4. Establish goals and measures
5. Develop and deliver the CCT
programme.
6. Evaluating the program.
1. Identify the type of global assignments:
Chief Executive Officer
Structure Reproducer
Trouble-Shooter
Operative

2. Determining Training Needs :

Organizational Analysis
Individual Analysis
Assignment Analysis
3. Establish Goals and Measures:
Short Term
Long Term

4. Develop and deliver the CCT Programme:

Course Content
Identify methods of training:
 Didactic General Training
 Didactic Specific Training
 Experiential General Training
 Experiential Specific Training
Sequence Sessions
 Pre-Departure CCT
 Post-Arrival or In-Country
5. Evaluating the Programme:
Short Term Goals
Long Term Goals
Steps in HCN Training
 Objectives
 Types of HCN Assignment

• Managing Director/ Country Head / Centre Head

• Chief Operating Officer, Chief Technology Officer, Chief Information
Officer, Chief Finance Officer, HR Director/ HR Manager
• Unit staff

 Training Needs Analysis

 Training Goals and Measures
 Develop and Deliver the Training
 Identify the Methods of Training
 Evaluating the Effectiveness
Cultural Awareness Training and Assignment
Performance
Language Training
The role of English as the language of world business:
Organizational isomorphism = pressure to follow similar
paths in management practices
Host country-language skills and adjustment: improve the
expatriate’s negotiating ability, access to information
Knowledge of the common corporate language:
Vocabulary that tells people the correct, acceptable ways to
conduct business in the firm
The Impact of Language on Power
Practical Assistance for expatriates
Information that assists relocation
Assistance in finding suitable accommodation
and schooling
Further language training
Makes an important contribution to adaptation of
expatriate and accompanying family members to
the host location
 Effectiveness of Pre-departure Training
 Limited data on how effective such training is and what
components are considered most essential:
 Use of mixture of methods makes evaluation of which method
is most effective difficult to isolate
 Large diversity of cultures involved
 What works for one may not work for another
 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.
 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
 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.
Expatriate Career Decision Points
Emerging Trends in Training for
Competitive Advantage
Computer Based Training (CBT)
Video-books
Online Training
Corporate Sponsorship of Skills
Certification Programs
Quarterly/ Half Yearly Global Term
Reviews
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
How international teams benefit
the multinational
 Fosters innovation, organizational learning and
transfer of knowledge
 Assists breaking down of functional and
national boundaries
 Encourages diverse inputs
 Assists in developing broader perspectives
 Develops shared values