Mgt 485 CHAPTER 16 HUMAN RESOURCE DEVELOPMENT ACROSS CULTURES Irwin/McGraw-Hill [Modified by EvS] Applied Project Papers & Presentations Papers – Per Syllabus – Note – there is NO length specified – Keep it CRISP! Concise Relevant Informed Systematic, and Practical. Presentation – Nominal 10 minutes each Use PowerPoint or other aides Discuss Highlights (not details!) Lead to your conclusion Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-2 Paper development Opening sentence – Identify product, service, country Discuss RELEVANT domains – Social, technological, economic, political Narrow focus onto important aspects of – Cultural differences – Trade barriers, restrictions, fees, etc. – Review all exercises (important information) Discuss exactly how these issues will impact product and or service – Viability of pursuing the market? Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-3 Internet Sites - HR http://www.unitar.org/ http://www.itcilo.it/ http://www.trainingitc.com/ http://usinfo.state.gov/ http://www.t-bird.edu/ http://www.sit.edu/ http://www.wetfeet.com/asp/companyprofiles.asp?co mpanypk=1618 http://www.nam.org/institute/success/educomp.html Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-4 Training and MNC’s 30% of MNC’s offer formal cultural training programs 58% of MNC’s offer some cultural training to expatriates 91% of MNC’s offer cultural orientation to spouses 75% of MNC’s offer cultural orientation to children Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-5 MNC Management Philosophies Ethnocentric home-office personnel in charge of key management positions \ Polycentric local nationals in key management positions Regiocentric relies on local managers from a particular geographic region to handle operations Geocentric integrates diverse regions through a global approach to decision making Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-6 Reasons for Training Prior to Overseas Assignments Organizational reasons – – – To reduce ethnocentrism To Improve the flow of communication between home office and affiliates To increase MNC efficiency and profitability Personal reasons – – – – To improve abilities to interact with locals To dispel myths and stereotypes To overcome arrogance To assist with foreign language acquisition Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-7 TYPES OF TRAINING PROGRAMS Standardized (generic) management tools to be used regardless of where the mangers are sent in world – used by small firms Tailor-Made (custom) management tools created for the specific needs of the participants – used by larger MNC’s Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-8 The Process of Self-Evaluation What is your management style? – Factual - decisions based on data – Intuitive - innovative; jumps from idea to idea – Analytical- carefully weights alternatives – Normative- concerned with how things should be done Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-9 CULTURAL ASSIMILATORS A Cultural Assimilator is a learning tool designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs, and values of another Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-10 Problems with Assimilators Choice of content (critical incidents) – an expatriate interaction with a host national – a puzzling situation easily misinterpreted – accurate interpretation is probably given sufficient knowledge – the situation is relevant to the expatriates’ task requirements Validation – Does the instrument measure what it is designed to measure? Cost-Benefit Analysis – $40,000 per assimilator Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-11 Other Approaches for Overseas Preparation Visits to the host country Briefings by host-country managers In-house management programs Training in local negotiation techniques Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-12 ORGANIZATIONAL DEVELOPMENT Organizational Development (OD) - the deliberate and reasoned introduction, establishment, reinforcement, and spread of change for the purpose of improving an organizations effectiveness and health Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-13 OD Interventions Team building – sensitivity training and co-operation Management By Objectives (MBO) – joint setting of subordinates goals Confrontations meetings – information on intra- or intergroup conflict Third-party peacemaking – mediator to resolve conflict Survey feedback – using information to develop an action plan Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-14 Limitation of OD in International Settings Cultural barriers Language differences Power distance and uncertainty avoidance differences Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-15 Approaches to Cross-Cultural Training Length of Stay Length of Training 1-3 Years 1-2 Months+ Cross-Cultural Training Approach Impression Approach Assessment center Field Experiences Simulations Sensitivity training Extensive language training 2-12 Months 1-4 weeks Affective Approach Language training Role-playing Critical incidents Cases Stress-reduction training Moderate language training <1 Month < 1 Week Information-Giving Area briefings Cultural briefings Films / Books Use of interpreters "Survival-level" language training Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-16 Gillette Case Global Company – 4 main divisions North Atlantic Diversified Group Stationary Products International Group – Personal Care products – 3 geographic groups (Excluding North America & Western Europe • Africa, Latin America and Middle East • Eastern Europe • Asian Pacific Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-17 Gillette Case Global Company – 57 Manufacturing Facilities – 28 Countries – Products distributed to 200 countries – 75% of workforce is outside the U.S. – Close coordination Simultaneous launch of Sensor Excel razor in 19 countries Regio-centric approach – Each culture and clientele is unique – Country by country guidelines Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-18 Gillette Case Focus – Changed Began as philanthropic (internship) Converted to in-house Management Training – “Groom” for management jobs in home country – Management responsible for selecting candidates Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-19 Gillette Case Source: Prestigious Universities, top students – 6 months in home country – Transfer to one of 3 international headquarters (18 month assignments) Boston London Singapore – Slated to be future “senior International leaders” Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-20 Gillette Case Personal and organizational objectives – Ability to interact effectively with local people at foreign operations – Enhances individual’s competitiveness and marketability in and outside of Gillette 90% offered permanent jobs – 90% generally accept – Over half still with Gillette – Increased communication – Appreciation for different approaches More “open minded” Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-21 Gillette Case Beyond students – Expatriate experience for managers 80% of top 40 executives 50% in at least 3 countries “Transferability” of management is the “glue” Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-22 Gillette Case Focus = Future management needs Emphasis = Interpersonal skills, reduction of ethnocentricity, appreciation for diversity Effect upon the organization = Increased competitiveness, more flexibility in management Central aspect of their training = Regiocentric philosophy – Key objectives of “identify” “recruit” and “develop” management Cultural Adjustment = Extension of culture Would it work elsewhere? Irwin/McGraw-Hill [Modified by EvS] Mgt 470-16-23