Module 4

In this module, the following areas have been discussed:

1). Developing Global Mindset: Global Leadership

2). Cross cultural context and international assignees,

3). Current scenario in international training and development,

4). Training & development of international staff,

5). Types of expatriate training,

6). Sensitivity training,

7). Career Development,

8). Repatriate training,

9). Developing international staff and multinational teams,

10). Knowledge transfer in multinational companies.

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1). Developing Global Mindset: Global Leadership

The single critical success factor in globalizing business lies with an organization‘s pool of highly
competent global leaders who have the global knowledge of production and service capabilities,
of consumer demands for products and services around the world, and who can influence others
despite diverse cultural, political and institutional backgrounds that make them think, decide,
analyze, act and communicate differently than the leader. In other words, global leaders with
―Global Mindsetsǁ are the key to sustainable competitive advantage in the global economy.

Four recommendations for developing global leaders:

1. Organizations need strategic clarity about what kinds of skills a global leader needs.

2. Prospective global leaders need relevant developmental opportunities.

3. Prospective global leaders need appropriate levels of feedback, resources and support to help
them learn from the experiences they have.

4. People need international perspectives and exposure starting early in their careers to maximize
the quality of the globally competent expert pipeline.

The development of expert global leaders is complex. Their capabilities are developed over time
and build on threshold competencies that include a requisite level of inquisitiveness and openness
— natural abilities that are supported by cross-cultural knowledge — and build on a base of
business or technical skills. International experience contributes to their development as do
international management development programs and cross-cultural training programs. But these
interventions alone do not make someone an expert global leader. It takes a Global Mindset.

2). Cross cultural context and international assignees:

The human resource refers to the accumulated stock of knowledge, skills, and abilities that the
individuals possess, which the firm has built over time into an identifiable expertise.

Building a team with international orientation, committed and competent people who will support
the organization‘s strategic business and enhancing core competencies of organization needs
training and development

3). Current scenario in international training and development

With the world-wide expansion of companies and changing technologies, Indian Organizations
have realized the importance of corporate training. Training is considered as more of retention
tool than a cost.
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Today, human resource is now a source of competitive advantage for all organizations. Therefore,
the training system in Indian Industry has been changed to create a smarter workforce and yield
the best results. With increase in competition, every company wants to optimize the utilization of
its resources to yield the maximum possible results. Training is required in every field be it Sales,
Marketing, Human Resource, Relationship building, Logistics, Production, Engineering, etc. It is
now a business effective tool and is linked with the business outcome.

With increase in awareness of corporate training in Indian Industry, a gradual shift from general
to specific approach has been realized.

According to NASSCOM (National Association of Software and Services Companies), the IT

corporate training market is expected to reach Rs 600 crore in 2010 from Rs 210 Crore in 2006.

In Indian market, 50% of the training companies’ revenue comes from the retail training and rest
from other segments.

On the other hand, in many organizations training is regarded as non-essential or a need-based

activity. Some organizations start a training department in order to look modern. In fact, some
organizations are headed by unwanted employees rather than employees of outstanding merit.
While some organizations do not have a separate budget to hire highly qualified trainers for
training and development.

4). Training & development of international staff

MNCs spend substantial amount of money on training and development of employees

Cost of expatriate failure is very high which organizations cannot bear.

Selecting a right person and providing them with appropriate training before their departure as

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well as on arrival in a particular country is very important

• Should enable expatriates to determine in advance the appropriate cultural behaviors and
suitable ways of performing necessary tasks in the host country
• Should help expatriates cope with unforeseen events in the new culture and reduce
conflict due to unexpected situations and actions
• Should create realistic expectations for expatriates with respect to living and working in
the host country

5). Types of expatriate training

Language training

Practical assistance

Training for the training role

TCN and HCN expatriate training

Non-traditional assignments and training

Cultural awareness programs

Designed to adapt and appreciate host country culture so that expatriates can behave accordingly
or to develop coping patterns

Components of program may vary according to country of assignment, duration, purpose of

transfer and provider of programs

If expected interaction is low, degree of dissimilarities between cultures is low, training should
focus on task and job related issues and less cultural issues

• Low rigor training

Short time period

Lectures and videos on local cultures

Briefings on company operations

• High rigor training

Last over a month

Experiential learning

Extensive language training

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Includes interactions with host country nationals

Training Methods

• Reviewing available information about the host company: books, magazines, video tapes.
• Conversations with host country natives.
• Sensitivity training to become familiar with the customs and overcome prejudices.
• Temporary assignments to encourage shared learning.

Training Rigor: Techniques and Objectives

1. Preliminary visits
2. A well planned trip for the candidate and his spouse provides a preview and allows them
to assess their suitability and interest in assignment
3. Introduce expatriate to the business context
4. Making housing and schooling decisions
5. Exposure to community
6. Language training
7. The role of English as the language of world business
8. Host country-language skills and adjustment
9. Knowledge of the corporate language

Training for training role

• Need of expatriates may be due to lack of trained staff in host country

• Need to train HCNs as their replacement
• Ability to transfer knowledge and skills in a culturally sensitive manner should be very
important component of pre-departure training
• TCN and HCN expatriate training
• TCNs transferred to another country subsidiary
• HCNs transferred to parent country
• Provision of training for non-traditional expatriate assignments
• Non traditional assignments like commuting or international business travel

HCN training :

Pre-departure training

• Limited data on how effective such training is and what components are considered most
essential:
• Use of mixture of methods makes evaluation of which method is most effective difficult
to isolate
• Large diversity of cultures involved

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 • What works for one may not work for another
• Complex jobs in multiple cultural contexts

6). Sensitivity training

Sensitivity training involves such groupings as --T groups (T for training), encounter groups,
laboratory training groups, and human awareness groups are all names usually associated with
what is known as sensitivity training.

Sensitivity training is about making people understand about themselves and others reasonably,
which is done by developing in them social sensitivity and behavioral flexibility.

• Social sensitivity in one word is empathy. It is ability of an individual to sense what

others feel and think from their own point of view.
• Behavioral flexibility is ability to behave suitably in light of understanding.

Procedure of Sensitivity Training

Sensitivity Training Program requires three steps:
1. Unfreezing the old values -It requires that the trainees become aware of the inadequacy of the
old values. This can be done when the trainee faces dilemma in which his old values is not able to
provide proper guidance. The first step consists of a small procedure:

• An unstructured group of 10-15 people is formed.

• Unstructured group without any objective looks to the trainer for its guidance
• But the trainer refuses to provide guidance and assume leadership
• Soon, the trainees are motivated to resolve the uncertainty
• Then, they try to form some hierarchy. Some try assume leadership role which may not
be liked by other trainees
• Then, they started realizing that what they desire to do and realize the alternative ways of
dealing with the situation

2. Development of new values - With the trainer's support, trainees begin to examine their
interpersonal behavior and giving each other feedback. The reasoning of the feedbacks are
discussed which motivates trainees to experiment with range of new behaviors and values. This process
constitutes the second step in the change process of the development of these values.

3. Refreezing the new ones - This step depends upon how much opportunity the trainees get to
practice their new behaviors and values at their work place.

In one way Sensitivity training is the process of developing emotional intelligence, which means
"the mental ability an individual possesses enabling him or her to be sensitive and understanding
to the emotions of others as well as being able to manage their own emotions and impulses".
[Emotional intelligence, according to Merriam Webster, "describes the ability, capacity, skill or,
in the case of the trait, to identify, assess, and manage the emotions of one's self, of others, and of
groups."] Emotional intelligence enable employees to act according to the situation in the
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organization faced by him. It develops the ability to understand others feeling and their mental
status and interact accordingly. Conflicts and misunderstandings are mostly raised because of lack
of emotional intelligence possessed by the person which leads to breakup in perception and
relationship they main since long time in organization and effects the productivity of the
organization.

7). Career Development:

International assignments as a training and development tool

• Expatriates are trainers

• Expatriates show how systems and procedures work, ensure adoption, and monitor
performance of HCNs
• International assignments a form of job rotation – management development
• Components of effective pre-departure training
• Cultural awareness programs
• Preliminary visits

Preparing for an International Assignment

1. Social and business etiquette

2. History and folklore

3. Current affairs, including relations between the host country and the parent

4. Cultural values and priorities

5. Geography, especially its major cities

6. Sources of pride and great achievements of the culture

7. Religion and the role of religion in daily life

8. Political structure and current players

9. Practical matters such as currency, transportation, time zones, hours of business

10. The language

8). Repatriate training:

Coming back is a challenge. The returning family will obtain the tools and methods to readjust
effectively into the Finnish everyday life and business life. Cultural and practical changes in the
society. Major adjustments in business life Cultural readjustment: changes in oneself and making
the best of cultural readjustment Guidance with procedures with authorities etc.

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Training is designed for the relocating assignee and family. The training helps individuals and their
families adjust to the new environment and prepare for successful interaction both in daily life and
business situations in the destination country. The training consists of the following parts: cultural
differences/culture shock, business life, daily life/city specifics. The training occurs over 8-12
hours. Separate, customized children‘s and young adult program (4 hours) is also available.

9). Developing international staff and multinational teams

Management development-Gain of international experience, help in career progression, develop

for future international business expansion

Organizational development-Accumulation of stock of knowledge, skills and abilities upon

which organization can grow in future

Individual development

Job rotation

Management development tool

New range of jobs, tasks and challenges

Financial gain and career advancement

How international teams benefit the multinational

Fosters innovation, organizational learning and transfer of knowledge

Assists breaking down of functional and national boundaries

Encourages diverse inputs

Assists in developing broader perspectives

Develops shared values

International Cadre: Another Choice

Separate group of expatriate managers who specialize in a career of international assignments

Have permanent international assignments

Move from international assignments to international assignments

10). Knowledge transfer in Multinational companies

The ultimate goal of a MNC is to increase its turnover and profits worldwide. The need of

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coordination among all the worldwide spread subsidiaries is thus necessary. Furthermore, in such
a global and competitive market, one of the most important things in order to earn market shares
is to stay constantly innovated.

On one hand, subsidiaries are considered to be on the frontline of the market. That means that they
are clearly exposed to the flexibility of the market such as market changes, trends and
opportunities.

On the other hand, it is strictly the task of the headquarters to grant any extent of support to
encourage autonomy and innovation.

A central issue carried out by several researches is concerning the spread of the knowledge gained
by subsidiaries through their innovation and practices.

Knowledge transfer is not solely perceived as a one-way movement of methods from HQ to foreign
subsidiaries. In fact, ―reverse knowledge transferǁ from subsidiary to HQ is increasingly becoming
an object of research.

We believe that the knowledge achieved by subsidiaries through best practices and innovation is
fundamental for the improvement of the overall performance of the MNC.

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