International Human Resource Management Issues - Essay Example

?International Human Resource Management Table of Contents Table of Contents 2 Introduction 3 Literature Review 3 Key Cultural and al Issues to be Included in Expatriate Training Program 5 General Training Program 7 Specific Training Program 7 Expatriate Training Process 8 Cross-Cultural Training 8 Strategic Training 8 Bureaucratic Training 8 Conclusion 9 References 10 Bibliography 13 Introduction The process of globalisation around the world requires many organisations to assign their staff to foreign locations for the successful operations and control of the organisational subsidiary situated in foreign land. Employees are sent to foreign locations based on their skills and achievements that they have demonstrated in the native country (Kwintessential, 2004). However, the business culture and the business doing ways of the host country may visibly be different from the native country’s business culture. In such circumstances, it becomes difficult for the employees working in foreign countries to cope with culture that drastically varies in almost all aspects of the business (Ronny et al., 2007). This may create stressful impact on the expatriate employees. Hence, it becomes necessary for the organisation to provide necessary cross-cultural training to those employees selected for relocation in the foreign countries (Xu, 2011). Literature Review According to Nikolaeva (2010), it is vital for the organisations to provide and prepare expatriates with extensive training before departure in order to ensure that the expatriates are familiar with the cultural differences between the native and the host country. Accordingly, the author emphasises that proper training is extremely necessary for the expatriates, which should reduce any possibility of cultural shock (Nikolaeva, 2010). As per Scagliotti and Mujtaba (2010), pre-departure training creates a comprehensive support system for the expatriates and makes them familiar with the foreign culture that extensively helps them to reduce their stress in the foreign land. At the same time, they claim that providing cross-cultural training to the expatriates helps the entire organisation to gain substantial knowledge of the cultural differences between the native and the host nation (Scagliotti and Mujtaba, 2010). According to Morrison and Conaway (2007), the organisation operating internationally may suffer from the cultural shock which may hurt its profitability and render organisational initiatives to be inefficient. Hence, it is necessary for the organisation to provide training to expatriates so that they learn and understand the culture of the targeted country (Morrison and Conaway, 2007). According to Dowling et al. (2008), international business is closely related with the culture of the different countries where the business operates. Accordingly, the international business interacts and operates across the national boundaries. Therefore, it is crucial for the organisation to provide cross-cultural training relating with the targeted or the host country to its expatriates (Dowling et al., 2008). According Brewster and Packard (1994), cross-cultural training is essential for providing and enhancing skills and knowledge of the expatriates. Additionally, they emphasise that such training will enable the expatriates to operate efficiently in the unfamiliar foreign culture (Brewster and Packard, 1994). According to Tahir and Ismail (2007), cultural clash between the foreign and the local is inevitable. However, in between the expatriates have to face challenges in balancing the native and the host culture. In order to reduce the impact of cultural shock, they advocated providing cross-cultural training to the expatriates so that they can comfortably adjust in the host country (Tahir and Ismail, 2007). According to Mendenhall and Oddou (1985), the inability of the expatriates to cope with and adjust to the host culture (including both social and business ones) is often costly for the organisation and it may result in decreased productivity in the overseas operations of the organisation. Consequently, sending expatriate staff without training is often associated with the failure of the staff. Accordingly, they emphasised effective training of the staff before they are sent to the foreign nation (Mendenhall and Oddou, 1985). According to Barbian (2006), one of the major challenges confronted by the organisations in the process of its internalisation is the existence of cultural differences between the host and the native country. He considers that in order to minimise the failure of the expatriate staff, the organisations can at least provide pre-departure training to the respective staff before they are sent to the host country (Barbian, 2006). According to Aswathappa and Dash (2007), Cross-cultural training is a vital ingredient in the expatriate training. They stress providing integrated training including general culture and the specific culture of the host nation to the expatriate staff. They advocate that such training will equip the expatriate staff with likely cultural differences and will contribute to enhancing better understanding of the host culture (Aswathappa and Dash, 2007). According to Mujtaba (2007), cultural differences have an immense impact on the private and the professional life of almost every person. He stresses that international or expatriate managers can best enhance the competiveness and the productivity of the organisation by understanding the management and the cross-cultural aspects of the host country (Mujtaba, 2007). Key Cultural and Institutional Issues to be Included in Expatriate Training Program The structure of expatriate training program should include both general and specific cultural aspects of the host nation (i.e. determined to be Japan). Essentially, the two approaches of cross-cultural training can be followed while designing an expatriate training program (Eriksson and Kobin, 2007). This includes an inductive training program which moves from specific training program to general training program. In contrast, another training program called deductive moves from general to specific training program. Furthermore, the general training program is divided into two phases, namely self-assessment and cultural awareness. Self-assessment is sub-divided into three stages which include dealing with change, managing stress and identifying attributes. On the other hand, specific training program is also divided into two phases: knowledge acquisition and skills training. Likewise, knowledge acquisition is also sub-divided into three stages, namely areas of studies, language studies and host attitudes (Ko and Yang, 2011). Similarly, the dimension of skills training is also sub-divided into case studies, areas of simulation and behaviour modelling. These stages are precisely described below: General Training Program Self-Assessment In the initial stage dealing with change, the expatriates should be informed about the purpose and the value of the training program. This will generate motivation and readiness for cultural change among the expatriates (Juhl and Fuglsig, 2009). In the next stage, managing stress will make them familiar with the likely stress that they may face in the host nation. In the last step, i.e. identifying attributes, they will determine strategies that will be help them to manage their stresses effectively in the new culture. Cultural Awareness The general dimension is the first stage in cultural awareness phase which will identify the differences in the culture. The second stage which includes national values will help expatriates to recognise their home culture for better interaction with the host culture. Finally, workplace incidents will assist the expatriates in adjusting to a new workplace. Specific Training Program Knowledge Acquisition In its initial stage, namely areas of studies, the expatriates will be briefed on the host country’s cultural environment. Secondly, language skills will provide training relating to the host nation that will help them to interact effectively with the host members. In the last stage called host attitude, the expatriates are made aware of the host attitudes. Skills Training The first stage of the phase is case studies which will introduce problems that expatriates may face in the new culture (Niskanen, 2009). Secondly, area simulation will provide the expatriates with environment similar to the host culture. Finally, the behaviour modelling will allow the expatriates to review the entire training program and obtain an insight into the program. Expatriate Training Process The pre-departure training process of the expatriates can be categorised into three broad heads, namely: Cross-Cultural Training The expatriates will be visiting a new culture; therefore, the central notion of training will be focussed on cultural learning. The capability to adjust and understand the norms and the values of the host country is a vital factor attributed to the success of the expatriates and the organisation as a whole. The prime focus of the training process should be on three Cs, i.e. on culture, customs and communication (Brown et al., 2007). Strategic Training The training process must adhere to the organisational objectives. The expatriates will be physically isolated from the home organisation but should not forget the objectives for which they sent to the new culture. The training process should provide the expatriates with necessary strategic training that will help them to take strategic decisions in a new culture, keeping in mind the interests of both home the organisation and the host nation (Shen, 2005). Bureaucratic Training The next process should include training and introduction of the host country’s laws and regulations. The expatriates are often unfamiliar with the governmental regulations and laws of the host country. Hence, expatriates should be provided with training relating to the laws of the host country in order to make them familiar with political and legal environment of the host country. This will enable them to discharge their duties within the prescribed laws of the host country (Juhl and Fuglsig, 2009). Conclusion The globalisation process has provided national organisations with ample opportunities to expand their businesses internationally. However, the expansion of the businesses internationally requires relocation of home staff to the host country. Consequently, the expatriate employees often face difficulties to cope with and to adjust in the new culture. In such circumstances, there arises a greater need for training the expatriates in order to acclimatise them with the host culture. The cross-cultural training structure should primarily include both the general and the specific modes of the host culture. Furthermore, the training program can be categorised into three vital processes; i.e. cross-cultural training, strategic training and bureaucratic training. A successful training program will help the expatriates to acquire and to develop necessary skills and knowledge that will aid them to adjust in a new culture. References Aswathappa, K. and Dash, S., 2007. International human resource management. Tata McGraw-Hill Education. Barbian, D., 2006. Expatriates pre-departure training: an investigation into the approach of two German-based MNCs. GRIN Verlag. Brown, D. et al., 2007. Training basics. The multinational enterprise: managing the training of American expatriates. [Online] Available at: http://heyroth.tripod.com/angela/examples/expatpaper.pdf [Accessed September 22, 2012]. Brewster, C. and Packard, J., 1994. Evaluating expatriate training. International Studies of Management & Organisation, 24 (3), pp. 18–35. Dowling, P. et al., 2008. International human resource management: managing people in a multinational context. Cengage Learning. Eriksson, S. and Kobin, U., 2007. The design of cross – culture training programs for expatriates. International human resource training in Swedish MNCs. pp. 9-16. Juhl, B. and Fuglsig, S. C. S., 2009. Motivational theory. A study on motivational factors influencing the expatriate through the expatriation cycle. [Online] Available at: http://pure.au.dk/portal-asb-student/files/8430/217153.pdf [Accessed September 22, 2012]. Ko, H. C. and Yang, M. L., 2011. Introduction. The effects of cross-cultural training on expatriate assignments. [Online] Available at: http://www.uri.edu/iaics/content/2011v20n1/12Hsiu-ChingKoMu-LiYang.pdf [Accessed September 22, 2012]. Kwintessential, 2004. Cultural services. Expatriate cross cultural training. [Online] Available at: http://www.kwintessential.co.uk/cultural-services/articles/expat-cultural-training.html [Accessed September 22, 2012]. Mujtaba, B. G., 2007. Culture and management. Cross cultural management and negotiation practices. pp. 2–3. Morrison, T. and Conaway, W. A., 2006. Kiss, bow, or shake hands: the bestselling guide to doing business in more than 60 countries. Adam Media Publication. Mendenhall, M. and Oddou, G., 1985. The Dimensions of expatriate acculturation: a review. The Academy of Management Review, 10 (1), pp. 39–47. Niskanen, I., 2009. Cross-cultural training. Cultural problems that expatriates from Balkan are facing In Finland. [Online] Available at: https://publications.theseus.fi/bitstream/handle/10024/5775/Irena_Niskanen.pdf?sequence=1 [Accessed September 22, 2012]. Nikolaeva, T. G., 2010. Expatriate preparation and training. The challenges of expatriation and repatriation. pp. 5–9. Ronny, H. et al., 2007. Motives and roles of expatriation. Expatriate management selection and training in the expatriation process. pp. 4–7. Shen, J., 2005. International training and management development: theory and reality. Journal of Management Development, 24 (7), pp. 656–666. Scagliotti, G. and Mujtaba, B., 2010. Take a bow: culturally preparing expatriates for doing business in Japan. Journal of Comprehensive Research, pp. 57–58. Tahir, A. H. M. and Ismail, M., 2007. Cross-cultural challenges and adjustments of expatriates: a case study in Malaysia. Turkish Journal of International Relations, 6 (3 & 4), pp. 72–99. Xu, X., 2011. Conclusion. Inadequate training is a major reason that leads to expatriates’ inadequate cross-cultural business communication competence – a case study with a China-based company. [Online] Available at: http://businesscommunication.org/wp-content/uploads/2011/04/16ABCAsiaPac07.pdf [Accessed September 22, 2012]. Bibliography Golz, N., 2007. Training expatriates – crucial components in preparing for overseas assignments. GRIN Verlag. Read More