Global and Cultural Employee Training - Essay Example

Corporations are facing global markets. This global aspect has made global and cultural employee training a necessity. Employees from different partsof the world have to interact through emails, phone conversation, and in person. Traditions vary from culture to culture. It is no longer a matter of sexual harassment or bias when an American man is sent to Saudi Arabia over a woman. Culture diversity, especially when operating in a foreign market, is an important factor. Local laws must be followed in order to operate a successful business. Laws in the countries businesses operate in must be taught to employees, along with cultural boundaries. Businesses from around the world run global business this way. If an American business obeys a Saudi law by sending a man, Saudis must obey American Homeland Security laws by giving proper identification and taking off shoes when going through airport security. Global businesses can be profitable, if local laws and cultures are respected. This can only be accomplished through proper employee training. After World War II a global market opened up for business around the world. Business started expanding beyond their borders. IBM is an example of a global business. Early on IBM recognized the need for cultural diversity. Formal statements relating to diversity at IBM can be found as far back as 1953 by the then CEO Thomas J Watson Jr, who said: ‘it is the policy of IBM to hire people who have the personality, talent and background necessary to fill a given job, regardless of race, colour or creed.’ (Nicholson 2009) IBM recognized better business practices would be to incorporate the most qualified individual for each job. This task required cultural diversity, not only worldwide, but in their home country of the United States. The statement above was very progressive for the 1950’s. IBM started this policy and continued to this day by following: Three pillars that are in place to make up IBM’s diversity strategy are: • Creating a work/life balance. • Advancement of women. • Integration of people with a disability. (Nicholson 2009) This type of policy was brought about through laws like the American Disability Act, Affirmative Action, and other labor laws. The work/life balance is important to every country’s cultures. Different cultures expect different work days, work weeks, and vacation practices. The advancement of women can be achieved in the majority of countries that IBM operates in. However, in several Middle Eastern and other Islamic countries this is not legal or even possible. In Saudi Arabia, Malaysia, Iran, and other Islamic countries women do not experience the same freedoms as they do in the West. An example would be in Saudi Arabia women are not allowed to go into public without their husband or male relative. Women cannot drive in Saudi Arabia. This would hamper a woman’s advancement in IBM’s operation in Saudi Arabia. Finally integrating disabled is possible for a company like IBM since a large range of jobs is available within the company including desk jobs. In today’s society many jobs are available for disable. Looking at IBM’s three pillars can help an individual understand one company’s policy toward cultural diversity. The goal is to maximize business potential in every market globally. Cultural and global diversity helps businesses make more money. Cultural diversity can only be accomplished through employee training. IBM’s cultural diversity employee training has ten steps: 1. Start with good data, through quantifiable research if possible. 2. Build the business case, using industry benchmarks to find comparisons on measurements such as retention rates. 3. Find champions within the business, both senior management and employees. 4. Position the programs as an initiative for the whole business and not simply the HR team. 5. Look for the ‘low hanging fruit’ (IBMs first step was training and awareness). 6. Pilot each program before rolling out, as small steps and success builds momentum. 7. Staff focus groups are a good way to get buy-in. 8. Each program must be able to link directly to the organisation’s stated core values. 9. Don’t assume a huge budget is necessary. 10. Communicate successes. (Nicholson 2009) These cultural diversity employee training techniques work for IBM. Notice the training guidelines are broad enough to work within diverse societies. Not all companies are like IBM due to the diversity of the business plane. An example of another global business can be seen in Coca Cola’s operations. Coca Cola, although being a worldwide force, can lose business when not using culture diversity or training. An example is Coca Cola’s management of water worldwide. In India, Coca Cola was forced to shut down a plant due to local water shortages in 2007. One source reports: Citing the widespread water shortages being experienced by villages around Coca-Colas bottling plant…or either relocate or shut down the plant altogether. The report points out the heavy pollution present in the immediate vicinity of the Coca-Cola bottling plants and calls for additional studies. (Kudi & Srivastava 2007)In response to the water crisis in their India operating plants: Coca Cola was not operating in compliance with Indian law. This led to the mandatory shut down of the plant and a loss in a potentially successful market. As a result: The Coca-Cola Company (TCCC) pledged to lead its global beverage operations, including those of its franchise bottlers, to replace the water it uses in its beverages and their production. (AMEinfo.com 2009) This is an example of how Coca Cola had to change business practices to operate in regions with a low water supply. If only operating in the U.S., the concern of water might not have come up. However in cultures and areas like India, Egypt, Israel, and other arid countries this issue is a life and death matter. If the managers at the Coca Cola plant had proper employee training this situation might not have occurred. Coca Cola could have avoided having a plant shut down and other woes over water if following the practices for training employees would have been followed: Strategic thinking locally, regionally, and globally Understand and react to the challenges of a global marketplace Managing increasingly complex processes over long distances Ability to work with the politics and legal and economic systems of other nations Cultural Awareness/Value diversity (Robinson n.d.) Coca Cola thinks globally, but in this case did not think of local or regional water woes. Coca Cola did understand and react to challenges of the marketplace by taking steps to conserve water with a basic plan. This situation was dealt with over a long distance, but also with Indian politics, law, and economic system. After realizing what the water meant to the Indians cultural awareness dawned. All good employees training on a global level must have these elements to succeed. Not as many companies are as successful as IBM or Coca Cola. Too many businesses are losing money due to the lack of cultural diversity employee training. One author reports: 1. That a great deal of evidence has accrued to suggest that changes taking place in the global business environment often are not accompanied by complementary changes in human resource management practices leading to a situation whereby the failure of some firms is due to the mismanagement of people rather than to problems with technical systems. 2. This is because organizations have achieved relatively low levels of effectiveness in implementing Strategic Human Resource Management (SHRM) practices). 3. That in order to manage employees for competitive edge in a period of globalization, human resource personnel must possess competencies relevant for effective implementation of such strategic HRM policies and training. (Rajar and Shah, n.d.:2) All three of the problems above are avoidable with a well planned cultural diversity training course for each individual business. Upon knowing the elements of a good cultural diversity training program, a company has to implement the program that is uniquely developed to comply with its mission statement. An example could be Company X. Company X is a leader in widgets worldwide. Company X’s mission statement is to make quality widgets for affordable prices. In order for the company to keep affordable prices Company X must buy screws from a company in India. In order to train employees in cultural diversity to travel and work with local Indians, the company must take into consideration the laws, culture, and customs of India. For example, the water issues in India would have to be taken into account. Another example, in Israel Company X cannot legally work on Saturday, the Sabbath. Any other day Company X could ship widgets in and out of the country. These small cultural differences could mean Company X’s success or failure. Going back to IBM’s ten rules for creating a good employee training program (Nicholson 2009), Company X should gather data about each region. Knowing beforehand that shipping, travel, and sales cannot be possible on Saturday would help employees to plan business around the regional laws. Finding local contacts (Nicholson 2009) is also a necessity. This helps a company from making a faux paux in the region. All employees should be aware of a cultural diversity policy in each region. Individuals going from region to region need to be briefed about laws and business practices in the targeted region. Training and awareness (Nicholson 2009) can help employees know what to expect in another market. Every policy needs to fit with the company’s mission statement. Company X’s mission is quality widgets at an affordable rate. If a region cannot fulfill this statement, Company X should not operate their business in that region. Training does not take a huge budget (Nicholson 2009). Employees can create a global employee training program using common sense and company needs. Finally (Nicholson 2009) communication with all involved is a must. Communication with employees, human resources, local government, and everyone else involved can make a business profitable. Mistakes can be avoided through this communication. Global relations depend on a company’s cultural diversity. The only way to achieve this cultural diversity is a custom tailored employee training program. Companies must develop their own cultural diversity employee training program, either on their own or with help of a human resource company with the specialty being global relations. The employee training program must comply with regional laws, culture, and customs while also fulfilling the company’s mission statement as well. Without a cultural diversity employee training program a company will not survive in the global market. Bibliography AMEinfo.com. (2009). The Coca Cola Company pledges to replace the water it uses in its beverages and their production. Retrieved December 1, 2009, from AMEinfo.com http://www.ameinfo.com/122535.html Online. Elmuti, D., Tück, B., & Kemper, F. (2008, September). Analyzing cross-cultural Adaptability among business students: An qmpirical investigation. Retrieved December 1, 2009, from bnet: http://findarticles.com/p/articles/mi_qa5440/is_200809/ai_n30992463/ Online. Kudi, R. & A. Srivastava. (2007). Coca-Cola Asked to Shut Plant in India. Retrieved December 1, 2009, http://www.indiaresource.org/news/2008/1001.html Online. Nicolson, K. (2009, August 19). Cultural diversity, IBM style. Retrieved December 1, 2009, from Human Resource Leader: http://www.humanresourcesmagazine.com.au/articles/74/0C021774.asp?Type=60&Category=903 Online. Rajar, S. S., & Shah, A. (n.d.). The challenges of globalization and the role of human resources. Hyderabad, Pakistan. Online. Robinson, D. A. (n.d.). Developing skills and behaviors essential for success in the workplace. Retrieved December 1, 2009, from The Center for Business Education and Training: http://74.125.95.132/search?q=cache:8EVofhESyvsJ:www.ocean.edu/cbet/Think_Global.ppt+global+and+cultural+employee+Training+business&cd=51&hl=en&ct=clnk&gl=us Online. Read More