Chapter 7

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Chapter 7
International Training,
Development and Career
IHRM, Dr. N. Yang
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Chapter Objectives
 Define and contrast between training and
development
 Explore 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
 Examine the role of training in preparing and
supporting personnel on international assignments
 We examine the before, during, and post assignment
issues:
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Training and Development
 Training aims to
improve employees’
current work skills and
behavior
 Development aims to
increase abilities in
relation to some future
positions or jobs.
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International Assignments as a Training
& Development Tool
 Expatriates are trainers
Part of knowledge & competence transfer
Expected to help train & develop HCNs
 Expatriate ensure adoptions
Show how systems and procedures work
Monitor performance of HCNs
 A form of management development
Job rotation to gain a broader perspective
Assist in developing a pool of capable global operators
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Figure
7.1
International training and development
IHRM, Dr. N. Yang
IHRM Chapter 6
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Pre-departure Training Programs
 U.S. MNCs were found
reluctant to provide
pre-departure training
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U.S. firms 32%
European firms 69%
Japan 57%
 GMAC-GRS 2004
 62% firms provided at
least a 1-day training
 74% made it optional
 Most firms include
family:
 Primary reason:
 Top managers saw it
as not necessary or
effective
 No time
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Whole family 28%
Spouse 27%
Employee only 5%
None 40%
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Table
7.1
Availability of cross-cultural training in MNEs
Brookfield
2009
Brookfield
2011
CCT available
81%
74%
CCT attendance optional
78%
75%
 Employees only
7%
4%
 Employee and spouse
32%
46%
 Whole family
56%
49%
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IHRM Chapter 6
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Components of Pre-departure
Training
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Cultural awareness programs
Preliminary visits
Language training
Practical assistance
Security briefings
Training for the training role
TCN and HCN expatriate training
Non-traditional assignments and training
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Black & Mendenhall’s Three Key
Dimensions for Cross-cultural Training
 Training methods
 Levels of training rigor
 Duration of training, relative to
Expected degree of interaction
Culture novelty – how different host culture is
from native culture
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Information-giving approach
Low interaction,
similar cultures
Length of training
< 1 week
CCT methods emphasize an information-giving
approach:
 Area or cultural briefings
 Lectures, movies, books
 Interpreters
 ‘Survival-level’ language training
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Affective approach
2-12 month assignment,
some interaction
More training rigor
1-4 + weeks long
CCT methods emphasize an affective approach:
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Role-playing
Critical incidents
Culture assimilator training
Case studies
Stress reduction training
Moderate language training
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Immersion approach
High interaction,
novel culture
More training rigor
2+ months long
CCT methods emphasize an immersion approach:
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Assessment center
Field experiences
Simulations
Sensitivity training
Intercultural web-based workshop
Extensive language training
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Degree of Cultural novelty
The Mendenhall, Dunbar and Oddou
Cross-cultural Training Model
Degree of Interaction with HCNs
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Figure
6-3
Cultural awareness training and assignment
performance
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Table
7.2
Perceived value of cross-cultural
preparation of expatriates
Value Rating
Brookfield
2011
Brookfield
2009
Of great value
25%
19%
Of high value
64%
60%
Of medium value
11%
19%
Of little value
0%
2%
Source: Brookfield Global Relocation Trends 2009 and 2011, LLC.
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IHRM Chapter 6
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Developing Staff through
International Assignments
 Management development
 Organizational development
 Individual development
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PNNs, HCNs, TCNs
Non-traditional expatriate assignments
International business travelers
 Overcome time and resource constraints
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Expected Outcomes of International
Assignments
 Management development
 Individuals get experience, advance careers
 MNE gets cadre of experienced international
operators
 Organizational development
 MNE accumulates knowledge, abilities
 MNE & individuals develop a global mindset
 MNE gets direct control & socialization, which assist
the transfer of knowledge and competence
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Networked MNEs’ Benefits from
International Teams
 A mechanism for fostering innovation, organizational
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learning, knowledge transfer
A means of breaking down functional & national
boundaries, enhancing information flows
A method for encouraging diverse decision-making,
problem-solving, and strategic assessments
An opportunity for developing a global perspective
A technique for developing shared values; thus helping
MNE with informal, normative control through
socialization
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Figure
7.2
Developing international teams through
international assignments
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Trends in internationals training and
development
 Convergence for T&D from the pressure of globalization
 Divergence with growing realization of the importance of the
national context
 Host-countries pressure for localization of T&D initiatives
 Increasing awareness of NGOs’ importance
 The rise of China and T&D focused on China
Motorola University, Siemens Business School, European
Management Institution, HP Business School, Hairer University, IBM
Research Labor, Ericsson China R&D Institute
CPA tests, ETS exams
The U.S. 100,000 Strong Educational Exchange Initiatives, May 2010
 Realizing the need to address global, comparative, and
national contexts for effective T&D programs
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Figure
7.3
Expatriation includes repatriation
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Figure
7.4
Repatriation activities and practices
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IHRM in
Action
7.1
Repatriation and loss prevention at
ISCAM
 Wayne Bullova took an international assignment for
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three years as Loss Prevention and Safety Director at
ISCAM’s new regional center in central Peru.
ISCAM did a good job to prepare him and his family
for the difference between Lima and Denver.
His wife enjoyed local life, and his children quickly
adjusted to the American school in Peru.
Wayne immediately enjoyed the increased
responsibility and centrality of his new role.
He returned to a very different world upon repatriation.
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IHRM in
Action
7.1
Repatriation and loss prevention at
ISCAM
 The corporate restructuring occurred a year into his expatriate
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assignment. His long-time mentor and friend Herman Balkin took
reportedly a generous early retirement package. His network
dissolved, with a series of junior new executives.
He spent the better part of a month trying to get an office and to
understand his new job. The counter-terrorism and security
protocols he developed in Peru were either ignored or modified
by his supervisors.
Wayne placed his children in a city school district that the children
were having problems with, and his wife started to complain
about Denver’s winter.
After taking a 5-week vacation he was due, Wayne wrote up a
letter of resignation.
What went wrong? Could that be prevented?
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The Repatriation Process
 Assign home sponsors or mentors
 Home leaves, work-related information
exchanges, and pre-departure orientation
process
 After return orientation to the new job
assignment and local work group
 Reconnection to local social network, assisting
and coping with factors that drive postassignment family and career anxieties
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Expatriate Turnover (GMAC-GRS 2011)
 Expatriate average annual turnover 8%
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During assignment 22%
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Within 1 yr. of return 28%
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Between 1-2 yrs. of return 24%
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Over 2 yrs. 26%
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International Assignment Failure
GMAC-GRS 2011
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Brookfield 2010
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Failure rate 4%
Leading causes
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Premature return 7%
 Leading causes
Spouse/partner
dissatisfaction 18%
Poor candidate choice 16%
Poor job performance13%
Inability to adapt 12%
Other family concerns 8%
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Spouse/partner
dissatisfaction 65%
Other family concerns 47%
Poor candidate selection 39%
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Effectiveness of Ways to Reduce
Expatriate Turnover (GMAC-GRS 2011)
In order of high, medium, or low
effectiveness:
 Opportunity to use experience
35%
 Position choices upon return
22%
 Recognition
16%
 Repatriation career support
13%
 Improved performance evaluation
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9%
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Individual Reactions to Re-entry
 Job related factors
 Social factors
 Personal and organizational outcomes
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Figure
7.5
Factors influencing repatriate
adjustment
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Table
7.3
Career impacts of international
assignments
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Language Training
 The role of English as the language of
world business
 Host country-language skills and
adjustment
 Knowledge of the corporate language
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The Impact of Language on Power
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Shadow Structure Based on Language
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Responses by the MNE
 Staff availability and career expectations
 Boundaryless and protean careers
 International itinerants
 Return on investment (ROI)
 Direct and indirect costs
 Using TCNs and HCNs as a way to reduce costs
 Knowledge transfer
 Identifying critical, implicitly held knowledge assets
inherent in expatriation-repatriation
 Reducing resistance and building trust
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Figure
7.6
Linking repatriation process to
outcomes
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Knowledge & Skills Acquired from
International Assignment
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Market specific knowledge – Local systems
(political, social, economic), language, customs
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Personal skills – Inter-cultural knowledge, selfconfidence, flexibility, tolerance
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Job-related management skills – Communication,
project management, problem-solving
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Network knowledge – Meeting diverse people
General management capacity – An enlarged job
description, broader job responsibilities, exposure to
other parts of the organization
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Table
7.4
Topics covered by a repatriation program
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Proactive Strategies for Smooth
Re-entry
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Pre-departure briefings on what to expect during the assignment &
upon return
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Multiple career planning sessions
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Written repatriate agreements clarifying available assignments upon
return
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Mentoring programs that continue after return
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Extended home visits to keep up with social, family, & organizational
changes
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Reorientation programs on changes in organization
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Personalized orientation on emotionally-charged issues
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Personalized reorientation on financial & tax advice
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Providing an adjustment period upon return
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Visible and concrete expressions of the repatriate’s value to the firm
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Summary
 T&D through international assignments
 CCT components and effectiveness
 The importance of language training
 ROI and knowledge transfer
 Key issues through the expatriation-
repatriation process
 Trends and proactive strategies in managing
international assignments, expatriate
retention, and careers
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Vocabulary
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T&D = training & development, the human resource, NGOs
internal hires
cultural awareness training, CCT, field experiences, degree of expected interaction,
cultural novelty or similarity
information-giving, affective, & immersion approaches, security briefings
role-playing
preliminary visit
Additional types of training:
international cadre
 Language
multinational, virtual teams
 Critical incidents
repatriation, ROI
 Culture assimilator
reverse culture shock
mentors, repatriation program
 Stress reduction
career anxiety, work adjustment
 Simulations
family adjustment, social networks
 Sensitivity
boundaryless careers, protean careers
international itinerants
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Discussion Questions
1.
2.
3.
4.
What are some of the challenges faced in training expatriate
managers?
Assume you are the HR director for a small company that has begun to
use international assignments. You are considering using an external
consulting firm to provide pre-departure training for employees, as you
do not have the resources to provide this ‘in-house’. What components
will you need covered? How will you measure the effectiveness of the
pre-departure training program provided by this external consultant?
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?
IHRM Chapter 6
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