HUMAN RESOURCE DEVELOPMENT ACROSS CULTURES

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HUMAN RESOURCE DEVELOPMENT ACROSS CULTURES
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TRAINING
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Training in International Management

• Training
• Process of altering employee behavior and
  attitudes in a way that increases the probability
  of goal attainment
• cultural integrator
• Responsible for ensuring that the operations
  business systems are in accord with those of the
  local culture
• The most common topics in cultural training
  include
• social etiquette
• customs
• economics
• history
• politics
• business etiquette

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Training in International Management (cont.)

• Impact of Management Philosophy on Training
• Ethnocentric MNC - stresses nationalism and often
  puts home-office people in charge of key
  international management positions
• Polycentric MNC - places local nationals in key
  positions and allows these managers to appoint
  and develop their own people
• Geocentric MNC - seeks to integrate diverse
  regions of the world through a global approach to
  decision making

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SPARROW BUDHWARS RESEARCH 5 HRM FACTORS

• STRUCTURAL EMPOWERMENT
• ACCELERATED RESOURCE DEVELOPMENT
• EMPLOYEE WELFARE
• EFFICIENCY EMPHASIS
• LONG TERMISM STRESSING LONG TERM RESULTS

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HRM Practices in Select Countries
United States X X X X
X Canada X X X
X X United Kingdom X
X X X
X Italy X X X
X X Japan X X X X
X India X X X
X X Australia X X
X X X Brazil X X X
X X Mexico X X X
X X Argentina X X X
X X Germany X X X X
X Korea X X X X
X France X X X X X
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IMPACT OF MANAGEMENT PHILOSOPHY ON TRAINING

• Ethnocentric approach all key management
  positions filled by parent-country nationals
• Polycentric approach host country nationals
  manage subsidiaries parent company nationals
  occupy key positions at corporate headquarters
• Regiocentric MNC - relies on local managers from
  a particular geographic region to handle
  operations in and around that area
• Geocentric approach seek best people for key
  jobs throughout the organization, regardless of
  nationality

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IMPACT OF DIFFERENT LEARNING STYLES ON TRAINING
DEVELOPMENT

• Learning
• Acquisition of skills, knowledge, and abilities
  that results in a relatively permanent change in
  behavior
• Learning organizations
• Continual focus on activities such as training
  and development
• Teaching organizations
• Ensure that everyone in the organization passes
  their learning on to others.
• Cultural differences can affect learning
  teaching
• Cultural differences can affect learning and
  teaching
• Learned behaviors must be reinforced

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REASONS FOR TRAINING

• Organizational reasons
• Overcome ethnocentricism
• Belief that ones own way of doing things is
  superior to that of others
• Improve the flow of communication between home
  office and foreign subsidiaries
• Increase overall efficiency and profitability
• Personal reasons
• Improve ability to interact effectively
• Arrogant demeanor
• Overruling decisions of lower level managers
• Open criticizing by expatriate managers of home
  or host country
• Improve overall management style

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Model for the Development of Multinational
Managers
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TRAINING PROGRAMMES

• Area studies programs
• Cultural assimilator
• Language training
• Sensitivity training
• Field experience

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CONTINGENCY FRAMEWORK TO SELECTION TRAINING

• Identify clearly task that has to be performed,
  the environment, the psychological
  characteristics of the individual under
  consideration

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TASK THAT NEEDS TO BE PERFORMED

• How much interaction with local community is
  called for?
• CEO head of functional area?
• Financial officer?

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ENVIRONMENTAL VARIABLES

• Extent of difference between political, legal,
  socioeconomic, cultural systems of home country
  vis-a-via host country - assess rank order

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PSYCHOLOGICAL CHARACTERISTICS OF THE INDIVIDUAL

• Does he or she want to serve abroad?
• If no, end things since no training program is
  capable of changing this basic attitude
• If yes, to what extent is individual tolerant of
  cultural differences how well can he/she work
  toward intercultural cooperation

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CONSTRUCT TYPE OF FLOW CHART

• First Can the job be filled by a local national?
• If not, determine how much individual will need
  to interact with local community.
• If extensively, relational abilities
  environmental variables critical.
• Training program varies according to needed
  degree of rigor

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ORGANIZATION DEVELOPMENT
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Organization Development (OD)

• OD
• Deliberate and reasoned introduction,
  establishment, reinforcement, and spread of
  change for the purpose of improving an
  organizations effectiveness
• Basic purpose is to reconcile individual-group-org
  anization differences
• Nature of OD
• OD change agent
• Individual skilled in the behavioral sciences who
  knows how to guide and facilitate the
  introduction and implementation of change

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TYPES OF OD INTERVENTIONS

• TEAM BUILDING
• MBO
• CONFRONTATION MEETINGS
• THIRD-PARTY PEACE MAKING
• SURVEY FEEDBACK

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CONDITIONS FOR SUCCESS

• Use of an outside OD consultant who will collect
  the data, determine how best to deal with the
  problem lead the intervention.
• Support for the effort from all levels of
  management
• Proper implementation of the OD intervention
• Follow-up to ensure that once things are
  improved, they do not slip back

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OD IN INTERNATIONAL SETTINGS

• Cultural barriers do exist
• Language problems
• Does not work in cultures with high distance
  high uncertainty avoidance
• In many countries, including in Europe, MBO does
  not work
• Confrontation may be very inappropriate
• Need to work with a local facilitator.

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THE WORLD OF BUSINESS WEEK REVISITED

• Using table 16-1 as your guide, how would the
  training and development programs that Liberty
  Media uses in Germany be different from those
  that it uses in Argentina?
• Again, using table 16-1 as your guide, how would
  the programs that it uses in Puerto Rico be
  different from those employed in Japan?
• How could the company profit from the creation of
  a global leadership development program? If it
  chose to do this, what would you expect to be
  included in the program?

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ARGENTINA
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QUESTIONS ON ARGENTINA

• What are some of the current issues facing
  Argentina? What is the climate for doing
  business in Argentina today?
• Do you agree with Paul that language training is
  needed?
• Should the firm develop a standardized or a
  tailor-made training program?
• What are some things that Americans need to know
  about management styles in South America? In your
  answer, incorporate data from table 16-4.

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A SOUTHERN EXPANSION
Cuzco City, Peru
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QUESTIONS

• What type of training would you recommend for the
  expatriate managers?
• Would you recommend the use of cultural
  assimilators? If no, why not? If yes, for whom?
• If there are operating problems, would it be
  possible to use OD techniques to resolve them?

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COVERAGE FOR 7/4/2003

• CASE ELLEN MOORE
• What are the problems and why do they exist?
• What alternatives exist at this point?
• In Andrews position, what would you do?
• What changes would you recommend making for
  future projects?