Outline critical training packages that contribute to the development of international managers

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UoB No:09031620 IHRM 3/4/2011

BRADFORD UNIVERSITY SCHOOL OF MANAGEMENT

MDIS Singapore

Training Needs for International

Managers

International Human Resource Management

UoB no.09031620

Date of Submission: 24th June, 2010

Program: Master of Business Administration.

Lecturer: Dr. Wong Wee Chwee

Module Title: IHRM

MDIS Batch No: MBBE20915A

I certify that this assignment is a result of my own work and

does not exceed the word count stated below.

Word Count: 1,492 (Excluding appendices/bibliographies, tables and

diagrams)

This assignment contains a CD.

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UoB No:09031620 IHRM 3/4/2011

Table of Contents

Table of Contents................................................................................................................. 2Introduction:......................................................................................................................... 3

The role of training for International Managers:................................................................. 4Experimental Learning Theory (ELT):................................................................................ 5

Key Components of Effective Pre Departure Training:...................................................... 6

Pre Departure Expatriate Training Examined:................................................................. 7A different dimension to training for International Managers:............................................9

Expatriate Families:........................................................................................................... 10

Discussion and Conclusion:............................................................................................... 11References:......................................................................................................................... 12

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UoB No:09031620 IHRM 3/4/2011

Outline critical training packages that contribute to the development of

international managers.

Introduction:

In the new age of easy travel and e-business the contacts

between people of different cultures and nations are widespread. With

the increasing business dealings and cooperation among nations,

cross-national contacts are likely to be even more numerous and

extensive in the future. This implies that there will be a further demand

for individuals who can function effectively and efficiently in a foreign

environment. (Tung, 2001). As with expatriates, internationalmanagers adopting other methods of working on international

assignments, such as e-business, business travel, and short and non

standard assignments, face similar difficulties as expatriates, though at

a much less intense level. As international manager numbers increase,

it has been estimated that 10 to 40% of expatriates return before

completing their assignment. (Romero, 2002). These casualties not

only represent substantial costs to the companies involved, but

constitute a waste of human resources because most of those who

failed had good track records in the home office prior to assignment

overseas. (Tung, 2001).

In the light of the relatively high failure rate among expatriates,

the need to identify possible misfits (expat selection), and training

procedures to ensure better performance abroad, present itself with

great urgency. (Tung, 2001). Therefore, the way in which a multi

national enterprise (MNE) anticipates and provides suitable training is

an important first step. This is reflected in the growth of interest in,

and provision or, pre-departure training to prepare expatriates and

accompanying family members for the international assignment.

(Dowling et. al., 2008).

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The role of training for International Managers:Expatriates dont come cheap to start with and

underperformance or failure only adds to the bill. Contributing to the

high failure rates and costs is the lack of comprehensive expatriate

support to meet the myriad challenges of working and living in another

country. (Jack, Stage 2005). One of the major reasons for expatriate

failure is the expatriates or his/her familys inability to adapt to the

foreign culture of the assignment location, besides other reasons such

as lack of emotional maturity, insufficient technical skills and low levels

of motivation for being overseas. (Romero, 2002).

Figure 1: The need for expatriate pre departure training.

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Given that the primary expatriate selection criteria is technical

ability, since of course the primary role of expatriates is to train host

country nationals, through knowledge transfer and establish systems

and processes that work effectively, it is not surprising that there is a

emphasis on pre-departure training activities that are mainly

concerned with cultural awareness. This aspect has gained prominence

as there is a close link between expatriate failures and cultural

adjustments. (Dowling et al 2008). Failed or ineffective expatriate

assignments may be avoided by utilizing effective training to prepare

expatriates and his/her families for the assignment while still in the

home country. Cross cultural training (CCT) has been effective at

increasing cross-cultural skill development and job performance.

(Romero, 2002)

Experimental Learning Theory (ELT):

Though there is an increasing emphasis on training,

Experimental Learning Theory as proposed by Kolb (1984) remains the

most pervasive theories of how managers learn from experience.

Basing his model on the works of Dewey, Lewin, Paiget, James and

Freire, Kolb argued that experimental learning encompasses the

totality of the human learning process, where experience forms the

foundation for four modes of learning: feeling (Concrete Experience,

CE), reflecting (Observation & Reflection, RO), thinking (Abstract

Conceptualization, AC) and acting (Active Experimentation, AE). Taken

in order these four stages encompass the learning cycle and it can be

immediately appreciated how CE forms a basis for RO, in which theexperience is subsequently assimilated into AC. From AC, the

experience is then formed to AE, which signifies that the learning cycle

is complete and ensures that it begins anew by assisting the creation

of new experiences (CE). (Yamazaki, Kayes, 2004).

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Figure 2: Experimental Learning Dimensions and Learning Skills.

Source: Yamazaki, Kayes 2004.

Key Components of Effective Pre Departure Training:

After having selected the expatriate through a structured

selection process and evaluating his/her suitability for the assignment,

using factors that are critical to success, such as Technical

Competence, Personality Traits, Environmental Variables, his/her

family situation etc. (Tung,2001), it is now relevant to discuss the

constituents of expatriate training packages.

Studies indicate that the essential components of pre departure

training programs that contribute to a smooth transition to a foreign

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location include cultural awareness training, preliminary visits,

language instruction and assistance with practical day to day matters.

(Dowling et.al, 2008).

Pre Departure Expatriate Training Examined:

As can be seen from figure 1 expatriates, when exposed to a new

culture are likely to experience a culture shock. The impact of the

culture shock can be significantly reduced by proper culture awareness

training. (Fig.1). Tung (2001) identified five main components of a

culture awareness training namely, area studies programs, culture

assimilator, language training, sensitivity training and field

experiences.

The area studies program includes environmental briefing and

cultural orientation programs. They are designed to provide the trainee

with information about the particular countries sociopolitical history,

geography, stage of economic development and cultural institution

with the basic assumption that knowledge will increase empathy, and

empathy will modify behavior in such a way as to improve intercultural

relationships. (Tung, 2001). Such programs may also include

understanding the host nations legal and educational system, politics

economics, heritage, social structure and social business practices.

(McEnery, DesHarnais, 1990)

The culture assimilator is a series of 75 to 100 short

intercultural encounters which are judged by a panel of experts to be

critical to the interaction between intercultural members. (Tung, 2001).

Though the technique was designed for people who had to be assignedoverseas at short notice, studies designed to test the validity and

effectiveness of the this training technique reveal that it is apparently

very effective in assisting members of one culture to interact and

adjust successfully with a member of another culture. (Tung, 2001)

Language training is a seemingly obvious and desirable

component of expatriate pre departure training, but is often ranked

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below that of the desirability for cultural awareness training. (Dowling

et. al, 2008.). Besides the fact that English is considered as the world

business language, other factors that make language training less

desired for expatriates is the degree of contact with host country

nationals. MNEs also tend to adopt a common company language to

facilitate reporting and other control mechanisms. (Dowling et al

2008). On the other hand knowledge of the host country language is a

critical element of the host country culture. An expat manager with no

host country language skills may rely on interpreters, as easy as this

seems, day to day affairs pose significant problems for these

managers. (McEnery, DesHarnais, 1990).

According to Tung (2001), sensitivity training programs focus

on learning at the affective level and are designed to induce flexibility

in the individuals attitude, thereby making him/her accept that

unfamiliar modes of behavior and value systems can also be valid

ways of doing things in a different culture.

Field experiences or preliminary visits to the host country

provide the expatriate candidate and his family to have a preview that

allows them to assess their suitability for and their interest in the

assignment. A well designed trip will also aim to introduce the

expatriate candidate to the business context in the host country, thus

allowing the candidate to make a more informed pre departure

preparation. However sufficient attention needs to be paid to the

phases of cultural adjustment, where in the first stage is the tourist

phase and normally coincides with the preliminary visit. It is phase 2

and recovery from phase 2 (Culture Shock) that is of vital importance

for the successful performance of the expatriate. (Dowling et al, 2008).

Figure: 3 The Phases of cultural adjustment

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Source: Dowling et al 2008.

A different dimension to training for International

Managers:

According to Yamazaki and Kayes 2004, there are nine cross

cultural learning clusters and these can be classified into four learning

skill dimensions. The four learning skill dimensions are interpersonal,

informational, analytic and action. The clusters of adaptive skills

encompasses the learning clusters of adaptability and flexibility and

managing stress, and since these skills develop abilities to react to

different multicultural issues, are put under the developmental skills

learning area. Table 1 below summarizes the nine clusters of cross

cultural learning.

Phase 1:

Tourist

Phase 2: Crisis

Culture ShockMay Exist

Phase 3:

Pulling Up

Phase 4:

Adjustment

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Adjustment

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Table 1: Competencies for successful cross cultural adaptation for

expatriates.

Source: Yamazaki, Kayes, 2004.

Expatriate Families:

Two thirds of expatriate failures are related to lack of

interpersonal skills and factors relating to the family situation that

disrupt adaptation. The spouses and the childrens inability to adapt to

the new culture makes the family vulnerable to internal conflict at a

time when unfamiliar culture has already exerted significant pressure

on the family. If an employee is to take on an expatriate role, the

company may also want to evaluate the families motivation and ability

to adapt to the new culture. More often than not, training and

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development has focused on the employee performance,

promotability, and bottom line effectiveness. But research shows that

family adaptation or lack of it, will affect performance and thus the

companies bottom line. (McEnery, DesHarnais, 1990).

Discussion and Conclusion:

The vitality of training for international managers can be seen

from the fact that 2/3 of expat failures are due to a lack of

interpersonal skills and family factors. Less than 1/3rd of expatriate

failures are job related. (McEnery, DesHarnais, 1990). Therefore the

emphasis of an expatriate program has to shift from selecting the right

candidate with the right technical skills to an all round development of

the employee to prepare him/her and his/her family for the overseas

assignment. Technical skills are of course rated by most MNEs as the

most important criteria for expatriate selection, and the ORC

Worldwide 2002 survey indicated that 72% of the participating firms

selected expatriate candidates based on technical abilities. (Dowling et

al, 2008)

(1,492 Words)

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References:

1.) Tung R.L., (2001), Selection and Training of Personnel forOverseas Assignments, Columbia Journal of World Business, pg

68- 78.

2.) Romero, E. J., (2002), The Effect of Expatriate Training on

Expatriate Effectiveness, Journal of Management Research, Vol.

2, No. 2, pg 73-77.

3.) Dowling P. J., Festing M., Engle A. D., (2008), International

Human Resource Management, 5th Edition, United Kingdom:

Cenage Learning.

4.) Yamakazi Y., Kayes D.C., (2004), An Experimental Approach to

Cross Cultural Learning: A Review and Integration of

Competencies for Successful Expatriate Adaptation, Academy of

Management Learning and Education, Vol. 3, No. 4, pg 362-377.

5.) McEnery J., DesHarnias G., (1990), Culture Shock, Training and

Development Journal, April 1990, pg 43-47.

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Outline critical training packages that contribute to the development of international managers