16-1

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

16-2

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Part Four: Organizational

Behavior and Human Resource Management

International Management,5th ed.

16-3

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

International Management,

5th ed.

Hodgetts and Luthans

Chapter Sixteen

Human Resource Development Across Cultures

16-4

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

IDENTIFY the training process as used in international management, and note that people from different cultures often have different learning styles

DISCUSS the most common reasons for training and the types of training that often are provided

EXPLAIN how cultural assimilators work and why they are so highly regarded

IDENTIFY the term “organization development,” and discuss its use in international management

Objectives of the Chapter

16-5

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Training in International Management

Training Process of altering employee behavior and attitudes in a

way that increases the probability of goal attainment Cultural integrator

Responsible for ensuring that the operation’s business systems are in accord with those of the local culture

The most common topics in cultural training include: social etiquette customs economics history politics business etiquette

16-6

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Training in International Management (cont.)

Impact of Management Philosophy on Training Ethnocentric MNC - stresses nationalism and often puts

home-office people in charge of key international management positions

Polycentric MNC - places local nationals in key positions and allows these managers to appoint and develop their own people

Regiocentric MNC - relies on local managers from a particular geographic region to handle operations in and around that area

Geocentric MNC - seeks to integrate diverse regions of the world through a global approach to decision making

16-7

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Table 16-1 HRM Practices in Select Countries

StructuralEmpowerment

High Low

AcceleratedResource

DevelopmentHigh Low

EmployeeWelfare

EmphasisHigh Low

EfficiencyEmphasis

High Low

Long-Termism

High Low

United States X X X X XCanada X X X X XUnited Kingdom X X X X XItaly X X X X XJapan X X X X XIndia X X X X XAustralia X X X X XBrazil X X X X XMexico X X X X XArgentina X X X X XGermany X X X X XKorea X X X X XFrance X X X X X

16-8

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Training in International Management (cont.)

Impact of Different Learning Styles on Training and Development Learning

Acquisition of skills, knowledge, and abilities that results in a relatively permanent change in behavior

Learning organizations Continual focus on activities such as training and development

Teaching organizations Ensure that everyone in the organization passes their learning

on to others

Cultural differences can affect learning and teaching Learned behaviors must be reinforced

16-9

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Training in International Management (cont.)

Reasons for Training Organizational reasons

Overcome ethnocentricism Belief that one’s own way of doing things is superior to that of

others Improve the flow of communication between home office and

foreign subsidiaries Increase overall efficiency and profitability

Personal reasons Improve ability to interact effectively

Arrogant demeanor Overruling decisions of lower level managers Open criticizing by expatriate managers of home or host country

Improve overall management style

16-10

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Figure 16-1 Model for the Development of Multinational Managers

Increasing effectiveness ofexpatriate andrepatriate executives

Overall objectives Internal relationsExternal relationsFamily relationsRelations with hostgovernment

Problem recognition

Predeparture trainingBehavioral simulationCase methodPostarrival trainingReentry training

Developmentalobjectives

How muchdevelopment?

Assessment ofdevelopmental

needs

Predeparture trainingBehavioral simulationCase methodPostarrival trainingReentry training

Developmentmethods

Knowledge about cultural, political, economic, business, legal, and social factors of the host countryAwareness of the needs and expecta- tions of the different partiesAwareness of problems of family relations in the host country

Intermediate result

Effectivenessof expatriateexecutives

Desiredresult

Effectivenessof repatriateexecutives

Desiredresult

Reentrytraining

Developmentalmethod

16-11

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Types of Training Programs

Standardized vs. Tailor-Made Standardized or generic training does not have to be culturally

specific Tailor-made training is created for specific needs Designed to provide a new set of skills for a new culture Self-evaluation training provides personal insights

Factual manager Examines available information and makes decisions based on that data

Intuitive manager Imaginative, innovative, and able to jump from one idea to another

Analytical manager Systematic and logical and careful in weighing alternatives to problems

Normative manager Idealistic and concerned with how things should be done

16-12

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Types of Training Programs (cont.)

Standardized vs. Tailor-Made (cont.) Training approaches that are successful in one

geographic region may have to be modified substantially if they are to be effective elsewhere

Types of cross-cultural training programs Environmental briefings Cultural orientation Cultural assimilators Language training Sensitivity training Field experience Cross-cultural training often provided to expat families

16-13

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Types of Training Programs (cont.)

Cultural Assimilators Programmed learning technique designed to expose

members of one culture to some of the basic concepts, attitudes, role perceptions, customs, and values of another culture

Choice of Assimilator Content Content must be important

Critical incidents Validation of the Assimilator

Validity Quality of being effective, of producing the desired results Valid test or selection technique measures what it is

intended to measure Cost-Benefit Analysis of Assimilators

16-14

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Organization Development (OD)

OD Deliberate and reasoned introduction, establishment,

reinforcement, and spread of change for the purpose of improving an organization’s effectiveness

Basic purpose is to reconcile individual-group-organization differences

Nature of OD OD change agent

Individual skilled in the behavioral sciences who knows how to guide and facilitate the introduction and implementation of change

16-15

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Figure 16-2 Contingency Approach to Cross-Cultural Training

Cross-Cultural Training Approach

LOW MODERATE HIGH

Degree of Integration

Length of Stay1 Month

or less 1 - 3

Years 2 - 12

Months

Level ofRigor

HIGH

LOW

Length of Training

1-2 Months

Less thana Week

1-4 Weeks

Immersion Approach

Information GivingApproach

Affective Approach

16-16

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Organization Development (cont.)

Nature of OD (cont.) OD intervention

Structured activity for targeted individuals to accomplish task goals related to OD

Team building Extension of classic T-groups and sensitivity training Geared to enhancing organizational effectiveness through

cooperation and a ‘team’ effort of key personnel Management by objectives (MBO)

System for the joint setting of subordinate goals, coaching and counseling personnel, and providing feedback on their performances

Confrontation meetings Gathering and analysis of information related to intra- and

intergroup conflict followed by the formulation of a plan of action by the participants for the purpose of resolving these problems

16-17

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Organization Development (cont.)

Nature of OD (cont.) OD intervention (cont.)

Third-party peacemaking Diagnosis of group conflict followed by the use of an outside party

(usually the OD change agent) to facilitate a constructive resolution of a problem

Survey feedback Involves the gathering and analysis of information related to group

behavior and problems and the feeding back of this information to develop effective action plans

OD in International Settings Cultural barriers limit the usefulness of OD

Some OD concepts are difficult to translate into a foreign language OD interventions must be adapted to local conditions

16-18

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Organization Development (cont.)

Organizational Behavior Modification (O.B.Mod.) Behavioral management approach, if applied properly, can

improve performance across cultures In the U.S., O.B.Mod. has positive impact on employee

performance in manufacturing and service settings Global Leadership Development

A number of leadership training approaches can be used Effective MNCs now encourage strong leadership in hard and

soft organizational issues GLP Program

Consortium of leading U.S., European, and Japanese firms, global faculty, and participating host countries

Provides intensive international experience to develop global mindset Blends rigorous intellectual development of global leaders

16-19

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Figure 16-3 OB Modification Model

YesEvaluate

Intervene

No Behavior modified?

MeasureBaseline frequency

AnalyzeFunctional consequences

MeasurePost-test frequency

IdentifyBehaviors for change must be

•Observable•Measurable•Task-related•Critical to the task

Behavioralcontingencies

A B C

Considerorganizationalcontingencies

•Industry•Structure•Size•Processes•Technology

use

Positive reinforcement•Financial•Nonfinancial•Social•Combination

use•Direct observation•Time-sampling•Archival data•Historical data Time

%

useSchedules of

reinforcement

•Continuous•Interval

•Ratio•Interval

Develop intervention

Apply intervention

16-20

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.

Figure 16-4 Tichy Development Matrix

RequiredApproach:

Action Learning

CurrentApproach:Old Way

EmergingTrend

Dev

elop

ing

Fu

nd

amen

tal

Ch

ange

Dev

elop

ing

New

Pro

ble

m-s

olvi

ng

Ap

pro

ach

es

Dev

elop

ing

Sk

ills

Dev

elop

ing

Cog

nit

ive

Un

der

stan

din

g

Dev

elop

ing

Aw

aren

ess

Depth of ChangeDeep

High riskLong Time

SuperficialLow RiskLittle Time

Team

Organization

Pair

Individual

Deep

Superficial

LongTime

LittleTime

HighRisk

LowRisk

Targetof

Change