CHAPTER 6: Training and management development in the multinational enterprise

Learning objectives (chapter 6) Advocate for training and development programs for the MNE’s

global managers and workforce. Identify the challenges of training an international workforce. Explain key learning objectives that drive training programs

aimed at enabling a productive global workforce. Design cross-cultural training programs that enable international

assignees to successfully complete their assignments and develop an effective global management team.

Develop a global mindset, global competencies, and global leadership in the international organization.

Improve the effectiveness of global and virtual teams.

Overview chapter 6:

Training in the MNE Issues related to global training and development Virtual and global teams Global leadership development Development of a global mindset Cross-cultural preparation for international

assignees Knowledge management in the MNE

Training in the MNE

T&D Imperatives

Think and act globally Equidistant global learning organization Focus on the global system Global leadership skills Empower teams Learning as a core competency Reinvent yourself and the global organization

Issues related to global training and development

Localized approach to global T&D Culture Learning styles Education levels and forms Language Laws Transfer of training

Box 6.1 Match training techniques to country culture

Country High PDI/Strong UAI Didactic Training Technique

Guatemala ReadingsMexico Panel

Venezuela LectureCosta Rica Case studiesIsrael Role playsNew Zealand FishbowlSweden T-group

Weak UAI/Low PDI Experiential

Standardized approach to global T&D Common processes, practices and principles E-learning

Virtual and global teams

Creating global teams

Size Effectiveness Belbin® team roles Contextual variables Best practices

Figure 6.1: Effectiveness of homogenous and heterogeneous teams

Number of Teams

Performance

Diverse Teams Managed Well

Diverse Teams Managed Poorly

Homogeneous Teams

Source: Di Stefano & Maznevski, 2000

Global leadership development

Global leadership theories

GLOBE research Trompenaars and Hampden-Turner Kets de Vries

Identification of high potential leaders Cultural models:

Elite Cohort (Japanese model) Elite Political (Latin model) Functional (Germanic model) Managed Development (Multinational model)

Source: Evans, Pucik and Barsoux , 2002

Development of leaders

“Global Explorers” Competencies Adler’s research

Box 6.2: Skills of transnationally competent managers vs. traditional international managers Transnational skills Transnationally competent manager Traditional international managers

Global perspective Understand worldwide business environment from a global perspective

Focus on a single foreign country and on managing relationships between HQs and that country

Local responsiveness Learn about many cultures Become an expert on one culture

Synergistic learning Work with and learn from people of many cultures simultaneously

Work with and coach people in each foreign culture separately or sequentially

Create a culturally synergistic environment

Integrate foreigners into theOrganizational headquarters’ national organizational culture

Transition and adaptation Adapt to living in many foreign cultures Adapt to living in a foreign culture

Cross-cultural interaction Use cross-cultural interaction skills on a daily basis throughout assignments

Use cross-cultural interaction skills primarily on foreign assignments

Collaboration Interact with foreign colleagues as equals

Interact within clearly defined hierarchies of structural and cultural dominance

Foreign experience Transpatriation for career and organization development

Expatriation or inpatriationprimarily to get the job done

Development of a global mindset

Definition of a global mindset

Personal and professional aspects Multiple definitions

Characteristics of a global mindset The ability to master and effectively apply

multiple competencies

Characteristics of organizations with a global mindset Geocentric Consider IBM

Acquiring a global mindset

Four T’s (training, transfer, travel, team) Developing a new perspective Experiential learning

Cross-cultural preparation for international assignees

Cross-cultural adjustment

Sacrifices Culture shock/reversed cultural shock

Preparation for the international assignment Orientation Training

Box 6.3: Preparation and training for international assignees

Establishing and maintaining relationships Preparation objectives Forms of training Training outcomes

Training focuses

Cognitive Behavioral Performance Adjustment Counseling

Design and delivery of cross- cultural training Behavioral awareness Cultural understanding Practical application HR checklist

Global executives: Developing managers in the global enterprise Parent country managers Development of local staff

Patterns of global management development Identify and develop management talent Common practices Management shortage

Knowledge management in the MNE

Key terms

Cross-cultural adjustment Cross-cultural training Cultural shock Global competencies Global mindset Global leadership Glue technology Knowledge management Virtual/global teams