Training for International Assignments - Term Paper Example

Training for International Assignments   Training for International Assignments                   The effects of globalization are being felt in all aspects of the economy and business life. Multinational corporations are a constant feature of the modern world, and their interconnected operations around the globe bring their own unique challenges for managers and business leaders. International assignments are an increasingly common part of larger organizations require specialized HR functions to oversee them as well. Special skills and an open mind set are required for international assignments and it is the job of the management to determine who exactly is most suitable for such a task and what recourses they may require is assisting them to complete their objectives successfully (Neill, 2008). The following is a discussion on some of the management aspects companies have to think upon when preparing the move into expatriate exchange programs.   Pre Departure Training                   Training is a crucial part of the orientation period for any new employee and an important developmental tool for the experienced ones. Those employees selected to be sent to other countries for a certain time period also require some de briefing before they can sent; it is a safe guard not just for their own performance but company performance and results as a whole. A prepared employee will be much more likely to achieve his or her goals than an unprepared one (Neill, 2008). There are four important components that should ideally make up the training regime for the employee: ·         General Culture training: Culture shock is a reality and employees have to be aware of the different aspects and norms of the social, public and private life that exist in the other culture in order to be able to transition smoothly. Culture sensitivity training can be conducted through presentation, seminars, reading materials etc and should cover the language, customs, culture expectations and culinary experience of the area of transfer. ·         Workplace Culture and communication training: The mode of conducting business and negotiations is very different from country to country. While some countries prefer an open, formal context culture, others may have a preference for a high context, informal culture. Understanding the time concept, workplace etiquettes and negotiation rules is crucial for an expatriate, as business cannot be conducted if two parties cannot communicate in an effective manner. ·         Sensitivity and training: Expatriates may be surprised by the different customs and traditions in place in another country. They don’t just need to know the differences; they also need to be respectful towards the other culture. Sensitivity training conducted through role play or case studies can prepare the employee about the appropriate reactions and mind set needed to accept the changes. It can also help them in interacting with their local co-workers or subordinates (Beitler, 2005). ·         Conflict Management: Another sub part of Workplace culture the employee has to be well versed in the local expectations by his co workers and sub ordinates, required for successful conflict resolution and discussions. ·         Leadership and career opportunity: Finally the company should spend some resource in helping the employee realize the benefits of such an assignment and what it means professionally for their career. A session or two could be conducted on the improvement in leadership skills and experience that the employee will get out of appointment and how it will help with their career progression. These assignments are often stressful and complex and unless the employee is fully motivated there is a high chance that they may fail to achieve their goals.   Performance Criteria                   Given the strenuous conditions and requirements for such an assignment and the resources that an organization will spend in training, recruiting and selecting for it, high performance is certainly expected from expatriates. Performance measurement is one of the key HR functions that help firms track the output of their employees (Beilter, 20050; for expatriates, however, the circumstances are different enough that often companies will fail to utilize the same performance management system for them as they use for the local employees. Keeping factors like culture shock and transitions times in mind, the performance can be measured using the following three broad categories: ·         Overall Subsidiary Performance: in the end, profits are what indicate an adequate level performance in any firm. If the expatriate is sent either  as the head of a subsidiary or as a trainer to support the performance of a subsidiary then the eventual increase in the results of that subsidiary should be made a part of their own performance appraisal. ·         Hard results (Key Performance indicator): these should be decided upon before the assignment is started and tailored according to the job description of the expatriate. Some measures relating to the international experience should be present e.g. negotiations with local business partners, deals signed, increase in market penetration, number of local employees trained etc.  ·         Soft Results (Behavioral, trait based): Since culture integration and sensitivity are crucial components of the whole process and research indicates these, more than anything else, determine the long term success of international assignments these should also be measured in the appraisal. Things like comfort with co-workers, successful mentoring of local employees etc can be determined through qualitative approach and surveys from the local subsidiary.   Recruitment and Selection Strategy              Choosing the right person is half the job of planning an international transfer. The ideal candidate needs broad set skills which can be classed into:  ·         Technical Competency : required for the basic job that the person is selected for ·         Relational Skills : to handle cross cultural interactions, integrations and communication ·         Ability to cope with variables and ·         Family Situation: As the expatriate may be required to travel frequently and live away from home for an indeterminate time, family situation will determine their career trajectory. Further the firm also has to decide the level of support it can provide to the expatriates family (in travel, transfer etc) as one of the job benefits (Gnomes, 2012).   Focusing on these competencies the company can either go for internal or external hiring dependant on their size and strategy. In either case, once the initial applications have been received (perhaps from a mix of external and internal candidates) the process should follow the classical method of selection:   ·         Interview – structured interview ·         Psychological Testing- mentally fit for international assignment ·         Assessment centre – Competency assessment (Gnomes, 2012) These should thoroughly asses the person’s competency for the desired position.   Comparison of Staffing Alternatives             For international assignments and subsidiaries the company has two basic options for the staffing of their offices. The expatriate’s selection can be “Poly-Centric” meaning that the company chooses to select people who already belong to the local culture but have been trained according to global standards (Gnomes, 2012). The main advantage of such hires is that the possibility of cultural dissonance will be less and the person will have better local knowledge that can help the MNC deal with legal and market issues more efficiently. But managers may have to be given a higher level of autonomy and office culture may be influenced more by local characteristics than the desired company culture.             The other option is the “Ethno-centric” staffing where the expatriate positions are held by employees from the MNC host country who have a direct line of communication with the head quarters and can better communicate company mission, vision and culture into the local environment. The main requirement for this is the enhanced support the expatriate will need in form of culture training, mentorship etc and the fact that they will have to be very open and receptive towards the other culture in order to immerse themselves in the experience (Gnomes, 2012).             In the long term, it seems the best option for the MNC or any globally linked organization is to go for a dual strategy where they initially start off with support from the local employees in order to built up a solid operation base in the target country and at the same time invest in training of their host country employees for expatriate positions. As this will create a pool of experienced and willing employees who can more accurately transfer the company vision and goals to global subsidiaries.   Use of a Mentoring System                   Some of the world’s most successful expatriate operations utilize mentorship systems to support their employees. A good example is of the Japanese firms Support Programs that allow a year of training for their transfer employees and in the foreign country these expatriates work closely with mentors who help them cope with the challenges arising in an alien culture. These mentors have a direct link with the head office.                   The mentors not only provide professional guidance and direction to the foreign managers but can also provide valuable emotional support in the form of a link to their home culture (Littrell, 2007). Expatriates may feel isolated and confused initially in their new environments, providing capable mentors is one way to reduce such feelings in order for the expatriates to perform their jobs effectively.   ROI for international assignments                   Despite the development of training and support systems for expatriates, companies are still struggling with measuring the rates of returns on these assignments. The most common method is to determine the costs related with expatriates and then offsetting them against the perceived benefits for the company. The benefits may be more than just revenue or profits, also including the implicit benefits like developing trust in the local market or goodwill of local employees (Global Business News, 2008). Quantitative and useful results can be derived from the overall operations: ·         Costs: The package costs (salary, benefits, and allowances). Training costs (including language, culture and communication training) and relocation support costs (both ways to the foreign country and then back home). ·         Benefits/ Revenue: Increase in profitability, increase in market share, research and development benefits development of local employees and international managers and increase in knowledge of global culture and competencies.             References Neill, J., (2008) . The expatriate venture: what role does cross-cultural Training play and what theories guide research in the field?  University of Rhode Island. Available at: http://www.uri.edu/research/lrc/research/papers/Neill_Expatriate.pdf Beitler, M., (2005). Expatriate Training & Support. Available at:                   http://www.drbeitler.com/freestuff/articles/Expatriate-Training.pdf Gomes, S., (2012). Performance Management, Chapter – 4: (of IHRM). Available at:       http://xisspm.files.wordpress.com/2012/02/chap-6-performance-management.pdf Gomes, S., (2012). Recruitment and Selection (International Staffing) Chapter – 4: (of IHRM).   Available at: http://xisspm.files.wordpress.com/2012/02/chap-4-recruitment-and-selection.pdf Littrell, L.N., (2007). Mentoring Expatriate Employees: The Influence Of Multiple Mentors On             Overseas Experiences. A dissertation, M.S. University of Central Florida, Global business news., (2008). Companies Dont Measure ROI of International Assignments.             Available at:  http://www.globalbusinessnews.net/story.asp?sid=1138 Read More