BU IHRM Mod 1 - 3 T&D Performance, Expatriates

7/30/2019 BU IHRM Mod 1 - 3 T&D Performance, Expatriates

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Mod 1(3)Training & Development, Performance

management, Remuneration, Repatriation& employee relations. Socio-Political

Economic System U.S, U.K, Japan andIndia a comparative analysis.


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Exp atr iate Select io n and Training

There can be little doubt that a great contributor to the problemsand failure rates of expatriates is the selection and training of expatriates by MNCs.

Hixon (1986) reports that U.S. expatriates fail because of threecritical factors:

(1) they are selected solely on their domestic track record;(2) they lack adequate cross-cultural training; and(3) their family situation is misjudged or is not even considered in

the selection process.Other studies [Mendenhall et al. , 1987) find that most U.S.-based

firms make their expatriate selections based on technical

competence, not on the factors noted above, that lead toexpatriate failure.

contd .


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Unfortunately, the training programmes used byU.S-based MNCs surveyed offer no formalisedtraining at all for overseas postings. A 1986study by Dunbar and Ehrlich (1986) found that56% of the responding corporations offered nocross-cultural training to expatriates. That studyalso found that those cross-cultural programmesthat are offered are not comprehensive trainingprogrammes, and 57% of them last only one

week or less.


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Reasons for Training Management Phi loso phy and Train ing : The

management philosophy of a company, whether ethnocentric, polycentric or regiocentric influencesthe type of training. For example, ethnocentriccompanies will provide all training at the headquartersand these will be designed and delivered by home

nationals polycentric. Today, more and more companies are spendingsubstantial amounts of money on training anddevelopment of their employees to attain long-termorganisational goals. Training programmes are

designed and delivered after extensive research andpreparation so as to deliver acceptable returns oninvestment, and to secure sustainable competitiveadvantage.


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Schematic Representation of Training and Development

Effective training can prevent many errors and minimise the impact of others. Some of the biggest complaints against expatriates revolvedaround personal shortcomings in areas such as politeness,punctuality, tactfulness, orderliness, sensitivity, reliability, tolerance,

and empathy.

Recruitmentand

selectionTraining Development Internationalteam

Pre-departuretraining

Post-departuretraining

Internationalassignment


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Areas of global training and development:1. Technical training

2. Functional training3. Strategic management skills training4. Soft skills / Human relations training5. Cross cultural training6. Language training7. Pre-departure training8. Expatriate training9. Training for short term assignments10. On the job training assignments11. Global mind set training12. Team training13. Management development


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Expatriate TrainingComponents of Effective Predeparture TrainingProgrammesCultural Awareness ProgrammesThe components of cultural awareness programmes vary

according to country of assignment, duration, purpose of the transfer, and the provider of such programmes. Tung,(1981) identified five categories of predeparture training,based on different learning processes, type of job,country of assignment, and the time available:

Area studies programmes that include environmentalbriefing and cultural orientation; Cultural assimilators; Language training; Sensitivity training; and Field experiences.


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Preliminary VisitsLanguage TrainingLanguage training is a seemingly obvious, desirable component of apredeparture programme. However, there are three interrelated aspectsrelated to language ability that need to be recognized: The Role of English as the Language of World Business Host-Country Language Skills and Adjustment Knowledge of the Corporate LanguagePractical Assistance

Another component of a predeparture training programme is thatof providing information that assists in relocation. Practicalassistance makes an important contribution toward the adaptationof the expatriate and his family to their new environment.

Job-Related Factors We do know from the cross-cultural management literature that

there are differences in the way people approach tasks andproblems and that this can have an impact on the learningprocess (Park at al., 1996).


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Types of Cross-Cultural Training

Tung (1982) Surveyed managers in Europe, Japan and the U.S.and found six major types of cross-cultural trainingprogrammes:

1. Environmental briefing is used to provide information aboutsuch things as geography, climate, housing and schools.

2. Cultural orientation is designed to familiarise the individualwith cultural institutions and value systems of the host

country.3. Cultural assimilators using programmed learning approachesare designed to provide the participants with inter-culturalencounters.

4. Language training is aimed at increasing communication

effectiveness.5. Sensitivity training is designed to develop attitudinal flexibility.6. Field experience is arranged to make the expatriate familiarise

with the challenge of assignment.


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Developing International Staff Foreign assignments have long been recognized as an important

mechanism for developing international expertise for both

management and organizational development (Ondark, 1985).Many multinationals are conscious that they need to provideinternational experience to many levels of managers(regardless of nationality) and not just to a small cadre of PCNs. One technique used to develop larger pools of employees with international experience is through short-term

development assignment ranging from a few months toseveral years.Individual Career DevelopmentThere is an implicit assumption that an international assignment

has per se management development potential; perceivedcareer advancement is often a primary motive for acceptingsuch postings (Dowling, 2001). Attempts to illustrate asequence that may be common to all expatriates PCNs aswell as HCNs who accept assignments to either the parentoperations, or to other subsidiaries (thus becoming TCNs).


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PERFORMANCE:MNCs expect foreigners to perform distinctly and

create, contribute and add significant value to theorganisational activities. The expectations arediversified and varied widely. Employees alsoaim to making multi faceted and variedcontribution to the stake holders andorganisational goals and objectives. Crucialaspects of Performance Management are -

a. Organisational needb. Strategic requirementsc. Customer preferences


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CHALLENGES in Performance Management:1.Total company v/s part of it

2. Uniformity of data of performance3. Environmental variations4. Validity of performance creteria5. Time and distance variations

6. Varied levels of maturity7. raters competence 8. Rater bias - including halo effect, error of central

tendency, leniency &strict ness bias, personalprejudices, and recency effect

9. Host environment10 cultural adjustment11. Uniformity of data of performance


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AREAS REQUIRED TO BE APPRAISED:1. The CEO2. Structure producer 3. Trouble shooter

4. Operative5. The strategist6. The consultant

7. The innovator 8. Skill transferor


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Main areas to be appraised:

1. Parent country nationalsa. Role perceptions from PCNsb. Subsidiary expectations from PCNsc. Organisational roles of the subsidiaryd. Host countrys culture e. Culture of parent companys country

f. Organisational culture of parent companyg. Parent companys expectations from the PCNs


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2. Third country nationalsa. Role perception of TCNb. Subsidiarys expectations from TCNs c. Organisational norms of subsidiaryd. Host countrys culture e. Culture of org where TCN worked earlier f. Culture of TCNs country g. Organisational culture of the parent companyh. Parent companys expectations from TCNs


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3. Host country nationals

a. Role perceptions of HCNb. Subsidiary expectations from HCN

c. Organisational culture of the subsidiaryd. Organisational culture of Parent countrye. Parent companys expectations from

HCN


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SYSTEM / PROCESS OF PERFORMANCE APPRAISAL:1. Establish performance standards seperately for each

category of employees like PCNs, TCNs, HCNs, shortterm assignees, long term assignees, immigarents andreturnees.

2. Communicate standards / expectations to employees aswell as evaluators

3. Deciding upon performance appraisal formats4. Measuring actual performance5. Frequency of appraisal6. Adjust actual performance due to environmental

influence7. Compare the adjusted performance with that of others

and previous contd..


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8. Compare the actual performance withstandards and find out deviations, if any

9. Feed back to the appraisee10. Suggest changes in job analysis and

standards, if any11. Consider the appraisal results for contract renewal and promotion

12. Plan for employee training anddevelopment


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Problems of Performance Appraisal:1. Content bias2. Ineffective rators3. Recency effect

4. Distance work places5. Appraisal forms6. Failure of superiors in conducting

appraisal interviews7. Use of performance data


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How to make Performance Appraisal effective?1. Reliability and validity

2. Appraisal should be relevant3. Customisation of Appraisal forms4. Consensus of the appraiser and appraisee

5. Open and continuous communication6. Sensitive to ground realities7. Appraisees access to results

8. Easy to operate9. Raiters knowledge of the appraisee


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Managin g Expatr iates An expatriate is a home country or third country national

who is assigned to a country operational location. Mostexpatriates are managers or highly-trained technicalexperts. Studies by Gross and Kujawa (1992) wereconducted to identify the major advantages anddisadvantages of using expatriates. Among theadvantages of using expatriates are:

Expatriates usually have the necessary technical andmanagerial skills.

Expatriates enhance communication between theparent company and the foreign subsidiary.

Expatriates are more familiar with corporate culture,enhancing parent- subsidiary relations.

Assigning expatriates to foreign posts is an essentialingredient of their management-developmentprogramme and their progress toward becoming aninternational manager.


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The dis advantages of us in g expatr iates includ e:

The total compensation paid to the expatriate is usually

much greater than that paid to a host country national. Host country nationals do not require special training in

adaptation to the local culture. The use of host country nationals is consistent with

promote-from-within policies espoused by many MNCs. Host country nationals do not require work permits. Using host country nationals enhances the firms local

image.

Using expatriates with special employment contractsmay block promotional opportunities for locals and be inviolation of local equal employment opportunityregulations.


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Tung R.L. (1987) studied the factors that contribute toexpatriate success or failure, and identified eighteenvariables that affect success. She groups them into five

general categories: job competence, personality traits,relational abilities, environment variables and familyvariables. She also highlights the importance of familyconsiderations in cultural acculturation. Taken together the expatriate selected must meet six criteria:

They must be willing and motivated to go overseas; They must be technically able to do the job; They must be adaptable; They must have good interpersonal skills and be able

to form relationships; They must have good communication ability; and They must have supportive families.


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Expatriate failure What do we mean by expatriate failure? The term expatriate failure has been defined as the

premature return of an expatriate (that is, a returnhome before the period of assignment is completed). What is the magnitude of the phenomenon we call

expatriate failure? Harzing (1995) questioned the reported failure rates in

the US literature, claiming that there is almost noempirical foundation for the existence of highfailure rates when measured as premature re-entry.

What are the costs of failure? These can be both direct and indirect. Direct costs

include airfares and associated relocation expensesand salary and training. The invisible or indirect costsare harder to quantify in money terms but canprove to be more expensive for the company.


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The Roles of the Expatriate The reasons for using expatriates are not

mutually exclusive. They do, however, underpinexpectations about the roles staff play as aconsequence of being transferred from onelocation to another country. We shall now take alook at these roles.

The Expatriate as an Agent of Direct Control The Expatriate as an Agent of Socialization

Expatriates as Network Builders Expatriates as Boundary Spanners Expatriate as Language Nodes

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BU IHRM Mod 1 - 3 T&D Performance, Expatriates