13.3 TRAINING METHODS 13.3.1 CROSS CULTURAL TRAINING METHODS: Companies use a variety of methods to teach expatriates cross-cultural skills, aimed at facilitating interactions with a foreign culture. This section gives an introduction to the main methods, their focus, timing and activities used to convey the training. A summary of different training methods along with their attributes has been compiled and is presented in Table 1. The summary includes the training methods identified from the different academic sources presented in this section, as well as sequential training where different methods are combined. While some methods are more commonly used than others, they have all been included to give a comprehensive overview of the subject. 1. Didactic Training: Didactic training is most often provided in informal briefings, which can be given in a classical lecture form or with less structured methods such as casual conversations with experts. It can also be provided with informational booklets, presenting facts on the host country. Didactic training is the most common form of CCT and more than two thirds of all multinational corporations offer didactic training in the form of informal briefings to their expatriates before deployment abroad (Brewster, 1995, p. 63). This type of training provides factual information regarding working and living conditions as well as cultural aspects of the host country. The content of the cultural aspect does, however, mainly address practical issues, such as shopping and dress codes in the host country. It represents the traditional way of learning used in schools and universities, where information is transferred using one-way communication (Bennett et al., 2000; Gertsen, 1990). The content in didactic training is often hard facts like requirements for the job, policies, travel arrangements etc., but it also contains aspects that help prepare expatriates to establish a framework for understanding and adapting to a new culture when they arrive in their host country and facilitate lifestyle adjustments. Besides pre-departure issues, it can also include information on repatriation issues (Bennett et al., 2000). The didactic training can have a more general culture content or it can be aimed towards understanding a specific culture (Gertsen, 1990). 301 CU IDOL SELF LEARNING MATERIAL (SLM)
Fact-oriented didactic training is based on the notion that knowledge will facilitate intercultural relationships. According to Tung (1981a) this concept is contested by some authors, claiming that there is little evidence to support a positive effect. Tung (1981a) also argues that since cultural differences between two nations are numerous, didactic training should not try to convey all the knowledge that an expatriate will need during his or her stay. Because of this, didactic training should not be used as the only way of preparing expatriates for a foreign assignment (Caligiuri et al., 2001), but should rather be combined with more experiential methods (Gertsen, 1990). Grove and Torbiörn (1985) also state that fact-oriented training on its own is not enough to prepare an expatriate 2. Experiential Training: Experiential training is conveyed using a number of methods including, not only, practical exercises, workshops and simulations, but also more genuine concepts such as look-see visits to the host country (Caligiuri et al., 2001). Look-see trips can provide a first real experience of the country for the expatriate and sometimes his or her family. They give the opportunity to meet people in the new country and get a view of the new environment and the workplace. To be effective they need to be well planned, which can make them costly. The problem can also be that since they are designed to give the expatriate a positive view, they may not show the true picture of the host country (Brewster, 1995, p. 63). Experiential training aims at preparing the expatriate in a more direct way, building beyond the mere intellectual experience. The experiential training can also be either culture general or aimed towards a specific culture (Gertsen, 1990). The training is based on the concept of learning by doing and is conveyed by using practical exercises. This prepares the expatriate intellectually and emotionally to adapt to the new culture and enables him or her to develop certain skills that can be used when confronted with the new culture (Grove & Torbiörn, 1985). This is, according to Grove and Torbiörn (1985), one of the most promising training methods. 3. Attribution Training: Attribution training tries to give the expatriate skills in thinking and acting as a host national. It is aimed at giving the expatriate an insight into the cultural point of view in the host country. This enables the expatriate to explain and understand host national behavior. By teaching such skills, the aim is to make the expatriate’s attributes more isomorphic to the new culture. Attribution training is closely connected, but not limited, to a 302 CU IDOL SELF LEARNING MATERIAL (SLM)
teaching method called “cultural assimilator” (Grove & Torbiörn, 1985). This method consists of a series of intercultural short episodes, judged to be critical for the interactions between members of two cultures. In the episodes, encounters between members of two different cultures are used to practice interactions with a new culture (Tung, 1981a). 4. Language Training: Language training involves teaching the expatriate the native language and/or the business language of the host country. While fluency can take months or even years to attain there are still benefits of using this training method (Tung, 1981a). The method is often used in CCT and is an effective way of preparing an expatriate since lack of language skills can slow down an adjustment process. Even though fluency in the native language is not attained, the ability to enter informal discussions, use common courtesies and show cultural empathy can help to facilitate adaptation to the host culture (Brewster, 1995, pp. 64-65). Forster (2000) also concludes that some knowledge of the local language is important to send visible signals of politeness and to better understand the culture of the host country. Language barriers can prevent the expatriate from processing information posted in the local language, both privately and at a professional level, and this prevents integration (Brewster, 1995, pp. 64-65). Knowledge of the local language does, as mentioned, facilitate cultural adjustment, and Puck et al. (2008) mention language skills as the dimension with the strongest effect on expatriate adjustment. In a study by Forster (2000), respondents did not regard pre-departure language training as very important, but criticism from respondents partly included the short duration of most of the courses. 5. Cultural Awareness Training The goal of Cultural Awareness training is to give the expatriate insight about the concept of culture and cultural differences, by teaching awareness about the home culture. Training activities include self-awareness building and value ranking charts, but the goals can also be reached with more culture-general approaches, such as simulation games and perceptual exercises (Grove & Torbiörn, 1985). Other methods include role-plays and self-assessments and can be a good way of building self-awareness, which translates into acceptance of oneself and an ability to adapt to the host culture 6. Interaction Training: The method of Interaction training is based on interactions between new expatriates and expatriates with more experience of the local culture. It can take place before departure with previous expatriates or at the arrival in the host country. Overlaps in 303 CU IDOL SELF LEARNING MATERIAL (SLM)
expatriate placements are a sometimes-used training method, which can be very beneficial for the expatriate’s adjustment process. Benefits with overlaps include the possibility to explain tasks, introduce contacts and otherwise coach in the management and operation of the workplace. Families can also benefit in a similar way from interactions with the outgoing family Although the benefits are clear with this model, most actors do not use it. The reasons are cost issues and doubts in its value. There are also problems with organizing since the development of expatriate placements are hard to predict, and often are the result of short notice. This makes overlaps hard to manage even for very skilled organizations (Brewster, 1995, p. 64). 2.4.7 7. Cognitive Behavior ModificationThis method is among the less used training methods when training an expatriate. The expatriates get to name what activities they find rewarding or punishing in the home culture context. By making such distinctions, the expatriate can hopefully apply the same process in the host country and enable him or her to identify and focus on rewarding activities and feel positive about facing challenges of the host culture (Grove & Torbiörn, 1985). 13.3.2 Sequential Training: The early ideas about CCT suggested that it should be carried out before the departure, and some researchers still think that pre-departure training helps the expatriate to form realistic expectations prior to arrival (Caligiuri et al., 2001). Several researchers have, however, suggested the training to be more efficient when parts of it are held after arrival in the new culture (Grove & Torbiörn, 1985). One reason to concentrate much of the training to the post- arrival phase is the very short time span between selection and departure, in some cases less than a month (Torbiörn, 1976, p. 106). Another reason is that it may be difficult to understand, and later recall, abstract social behavior of the host culture if it is learned in a non-authentic environment (Selmer et al., 1998). Consensus as to whether CCT should be held pre-departure or post-arrival has not been reached, and a new model – Sequential training – has been developed to combine the benefits of both pre-departure and post-arrival training (Littrell et al., 2006). This model is not a method in itself but constitutes a combination of different training methods applied at different times during the training process. It is based on the notion that the capacity for learning varies over time; thus, the 304 CU IDOL SELF LEARNING MATERIAL (SLM)
training methods applied should vary over time as well. Sequential training starts before departure and then progresses in steps through the post-arrival adjustment phases, during which different types of CCT is applied, and can extend all the way to repatriation issues (Selmer et al., 1998). It can start a long or short period before the move and continue for months in the new country (Forster, 2000). Selmer et al. (1998) argue that joint sessions for sequential CCT together with other organizations operating in the same foreign culture can lead to synergistic effects; logistical problems will be reduced, and the expatriates can share experiences and learn from each other. If the time for pre-departure training is limited, didactic training about the cultural adjustment process should be in focus, to get the expatriate to develop realistic expectations about the situation and become aware of the phases that will emerge after the culture shock (Selmer et al., 1998). A fact-based training method may also teach tangible and understandable information about the certain characteristics and behaviors of the new culture that is important to know before, or just after, arrival. This may be delivered either before departure, after arrival in the host country, or both. If a cognitive-behavior modification approach is to be used, it can also be applied either pre-departure, post-arrival, or in both phases (Grove & Torbiörn, 1985). Both attribution training and cultural awareness training are best used before departure, but since attribution training is culture specific it is not applicable in a general training program. The cultural awareness training is very general in nature and can therefore be an effective part of a pre- departure training program that is directed at a group of expatriates that are going to very different regions (Grove & Torbiörn, 1985). Interactional learning is best used post-arrival, since the expatriate needs an authentic cultural context. Not until then will the expatriate realize many of the challenges he or she will be facing (Grove & Torbiörn, 1985). These personal experiences and realizations about the cultural differences between home country and host country have two positive effects: they can be used effectively in the CCT, and they further motivate the expatriate to participate in the training (Selmer et al., 1998). A certain level of language skills is necessary to have directly after arrival in the new country, so that common courtesies and basic greetings are mastered (Forster, 2000; Puck et al., 2008). The amount of language skills needed is not defined, but Puck et al. (2008) state that the person’s previous language skills and ability to learn new languages should be taken into account already during the selection process. The better the language skills are, the easier 305 CU IDOL SELF LEARNING MATERIAL (SLM)
will the adjustment process be, since language has a very strong effect on expatriate adjustment (Puck et al., 2008). The culture shock phase is the stage where the expatriate is the most susceptible to CCT. Both didactic and experiential training can be used, as well as explanations of observed behavior. The latter method is an effective way to develop appropriate behavior and learn how to learn more about the host culture (Grove & Torbiörn, 1985; Selmer et al., 1998). The adjustment phase is characterized by a growing consciousness with the expatriate, who at this stage needs to learn how to behave as the host nationals do. CCT should include on-the-job practice, both structured and unstructured situations, for expatriate-host national interactions (Selmer et al., 1998). 13.3.3 CROSS-CULTURAL INTELLIGENCE: Interactions over cultural borders require skills that can be labeled as cultural intelligence. Cultural intelligence can be present individually or collectively in the organization. Extensive training is required for a person to acquire sufficient cross-cultural intelligence. The training can include learning positive and negative aspects of the host culture, which can increase the cultural intelligence (Triandis, 2006). The concept of cultural intelligence can also be used as a tool in both the development process and the selection process of expatriates. Attributes connected to having cross-cultural intelligence are the ability to interpret verbal cues from persons of different cultures and to make correct social interferences during conversations. Another skill is the ability to reach social objectives through cultural negotiations, based on the own understanding and acceptance of the host culture. (Ascalon, Schleicher & Born, 2008). 13.4 MANAGEMENT DEVELOPMENT PROCESS 13.4.1 Concept: Management development process consists of assessing the company’s strategic needs appraising the managers’ current performance and developing the managers. Management development is the process by which managers learn and improve their management skills. In organisational development (OD), management effectiveness plays a dominant role in organisational success. So, the investment made in management development leads to direct economic benefit to the organisation. 306 CU IDOL SELF LEARNING MATERIAL (SLM)
Management development is concepts in which organizations help employees develop their personal and organizational skills. In organizational terms, development plans are intended to prepare persons to gain promotion and hold greater responsibility. Managerial development ensures that as and when the demand for managers arises, suitably qualified persons are ready to fill vacancies. Managerial development consists of all means by which executives learn to improve their performance. It is designed to improve the effectiveness of managers in their present jobs and to prepare them for higher jobs in future. Managerial development aims at helping the managers to realise their full potential. Management development is a way of improving the culture of the organization so that it could be geared to excellence. “People move organizations — not machines”. According to Edwin Flippo, “No organization has a choice of whether to develop employees or not; the only choice is that of method”. The need for management development is well accepted in the present business, which is fast changing due to technological and social developments. According to P.N. Singh, “Management development is an activity designed to improve the performance of existing managers, provide a supply of managers to meet the need of organizations in future and extend the understanding of the management activity by drawing from the following three resource areas- (a) Knowledge, (b) Experience, and (c) Trainee himself”. “Executive or management development is the planned, systematic and continuous process of learning and growth by which managers develop their conceptual and analytical ability to manage. It is the result of not only participation in formal courses of instruction but also of actual job experience. It is primarily concerned with improving the performance of the managers by giving them stimulating opportunities for growth and development.” 13.4.2 International Development Process: 307 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 13.4.1: International Training and Development Process The manner in which a multinational corporation anticipates and offers appropriate training for overseas assignments is a critical first step. This is evident in the rise in demand for pre- departure training to prepare expatriates and their accompanying family members for their abroad assignment, as well as the availability of such training. The international training and development process is depicted schematically in Figure 13.4.1. It demonstrates the relationship between international recruitment and selection, as well as training and development. The majority of expatriates are hired from inside the MNE's current activities. Some expatriates, as indicated by the dotted arrow in Figure, may be employed externally for a international assignments. 13.4.3: Methods of Development: 1. International Assignments: International assignments are often determined by duration and vary according to the purpose and objectives of the task. The categories of the International Assignment are as follows: 2. Inpatriate assignments: One alternative to expatriation is inpatriation, which involves the transfer of subsidiary managers to the HQ for a specific period of time (Harvey et al., 2000). This would allow key subsidiary managers to get to know the workings of the parent company and build up informal communication networks. It also allows the HQ to inculcate 308 CU IDOL SELF LEARNING MATERIAL (SLM)
the subsidiary managers into the corporate culture in a more direct way than would be possible by the transfer of expatriates. Inpatriation is also a useful option if tacit knowledge needs to be transferred from subsidiaries to the HQ and it has the added advantage of exposing parent company managers to an international perspective. At first sight, expatriate and inpatriate assignments only constitute alternative forms of establishing HQ-subsidiary linkages. Indeed, both groups of assignees may act as boundary spanners or may help to reduce existing information asymmetries between the HQ and its subsidiaries. However, despite their similarities expatriates and inpatriates differ along several dimensions: Status differences. Expatriates possess the status and influence related to their role as HQ representatives. Coming from the MNC’s periphery, inpatriates are, on the contrary, unlikely to receive the same level of respect (Harvey, Novicevic, Buckley, & Fung, 2005; Reiche, 2006). Cultural adjustment challenges. Barnett and Toyne (1991) delineate increased adjustment challenges for inpatriates in comparison to expatriates. They argue that inpatriates not only need to adjust to the national culture (see Section 5) but also need to be socialized into the MNC’s HQ corporate culture. Indeed, learning the HQ corporate culture is considered an important motive for inpatriating foreign nationals. Expatriates, in contrast, often impose elements of the HQ corporate culture upon the subsidiary they are sent to. Differences in the underlying MNC staffing policies. The use of inpatriates also increases the cultural diversity and multicultural staff composition at the HQ, thereby fostering a geocentric approach to the allocation of human resources in MNCs. In particular, a higher share of employees with diverse cultural backgrounds will be collaborating directly as inpatriates are, for instance, temporarily integrated into the HQ’s management teams. In contrast, the use of expatriates reflects an ethnocentric view towards international staffing and expatriates generally continue to coordinate with their own HQ management team. Inpatriation seems to be an important addition to the company repertoire and can help to transfer knowledge, improve HQ-subsidiary relationships and develop managers. However, 309 CU IDOL SELF LEARNING MATERIAL (SLM)
inpatriates have to cope with many of the same problems as expatriates, such as repatriation, and, as described above, in other cases even encounter additional problems such as increased adjustment pressures. It is therefore unlikely that they will ever completely replace expatriates. 3. Short-term assignments:Another alternative to expatriation that has received growing attention by practitioners and researchers alike and helps MNCs to contain their costs is short-term assignments. The literature commonly refers to short-term assignments as postings between 1 to 12 months in length (Collings, Scullion, & Morley, 2007). In contrast to traditional expatriate or inpatriate assignments, the assigned manager is usually unaccompanied by his/her family, thereby avoiding the disruption of relocating entire families. Moreover, selection and preparation procedures (see Section 5) for short-term assignments tend to be more informal and ad hoc. Short-term assignments are particularly useful when specific skills need to be transferred, for example in the scope of multinational project work, or particular problem-solving needs arise. Apart from the increased cost effectiveness, short-term assignments also require less bureaucratic effort and can be executed in a more flexible and timely manner. At the same time, research has highlighted that short-term assignees may fail to develop effective relationships with local colleagues and customers while also facing increased risks of marital problems (Tahvanainen, Worm, & Welch, 2005). A related but even more temporary staffing option is the use of business trips that may last from a few days to several weeks. These transfers are also frequently referred to in the literature as international business travel or frequent flyers assignments (Welch, Welch, & Worm, 2007), thereby characterizing work arrangements in which international travel forms an integral part. Frequent flyer trips are useful for conducting irregular specialized tasks such as annual budgeting meetings or for maintaining personal relationships with key colleagues and customers in the host country. Finally, companies make increased use of commuter and rotational assignments. Whereas the former refers to a work arrangement in which the individual commutes from his/her home unit to a foreign unit on a weekly or bi-weekly basis, the latter concerns alternations of intensive work postings abroad and prolonged periods of leave, as common on oil rigs. Given the increased levels of stress associated with these 310 CU IDOL SELF LEARNING MATERIAL (SLM)
assignment types, they are unlikely to be maintained over an extended period of time (Collings et al., 2007). 4. Self-initiated assignments: While the traditional view of international assignments has been to focus on the employing organization to initiate the transfer, a growing number of assignees make their own arrangements to find work abroad, facilitated by the introduction of free movement of labour in the European Union and other economic regions. In contrast to the aforementioned types of assignments, these so-called self-initiated assignees are employed on local work contracts. In their study of graduate engineers from Finland, Suutari and Brewster (2000) identified a series of distinct characteristics of self-initiated assignments compared to traditional expatriation. For example, self-initiated assignees tend to be slightly younger, single and female, work for organizations with a lower focus on international business activities, at lower hierarchical levels and on more temporary contracts than expatriates, be motivated to move abroad due to an interest in internationalism and poor employment situations at home, and receive no repatriation promises and see their relocation as a more permanent move. Overall, given the increased need for international and cross-culturally experienced personnel, self-initiated assignments serve as an important complementary staffing option for both domestic and international organizations. 5. Virtual assignments: Finally, companies have begun to make use of virtual assignments in order to address the competing needs for decentralization and global interrelation of work processes, in a more flexible way. A virtual assignment does not require the individual to physically relocate to a foreign organizational unit but rather distributes international responsibilities as managed from the individual’s home base (Welch, Worm, & Fenwick, 2003). The growth of virtual assignments has been facilitated by improvements in information technology over the last decade to the extent that whole teams now regularly collaborate and communicate via email, telephone and videoconferencing. Despite the many advantages of virtual assignments that often exceed those of short-term assignments, face-to- 311 CU IDOL SELF LEARNING MATERIAL (SLM)
face communication remains crucial in many circumstances, thus limiting the use of virtual work arrangements. Since expatriation fulfils many roles, these four alternatives are unlikely to completely replace expatriates. However, they are often a cheaper alternative to expatriation, especially in the case of virtual transfers, and it is much easier to involve a large number of managers through short-term postings or virtual assignments than it is through expatriation. Moreover, each alternative form of transfer may also serve distinct purposes that are directly related to the successful operation of the company, which is why they are instruments that should form part of the repertoire of any MNC. 2. Mentoring: Expat mentoring is a formalized process where a more experienced employee works with an expat employee to help them succeed on assignment. Expat mentoring is particularly helpful to first time expats, especially if they can be mentored by someone who has previously worked overseas. The expat and mentor meet on an agreed basis to discuss solutions to any difficulties the expat may be having professionally or personally. The other option is for employees at different levels and roles in the host country to mentor a newly arrived expat. This has been shown to help with relationship building as the newly arrived employee has a warm introduction to the office. 312 CU IDOL SELF LEARNING MATERIAL (SLM)
Importance: Common causes of expat failure include an inability to adapt to the culture in their host country, lack of social support, and isolation from their home country. Having a mentor who has successfully completed an expat assignment and understands the challenges of doing so is invaluable. Coupled with a reliable expat assistance programme, mentoring can enable an employee to thrive in their new role. Expat Mentoring Process: Fig 13.4.1: Expat Mentoring Process While every organisation will have to take their own existing processes into consideration when establishing an expat mentoring programme, there are five key steps every business will have to undertake: Establish requirements for participation These are likely to vary depending on the size of your business, the number of expat employees and your history of sending employees overseas. For example, if you have a long history of expat success to draw from you may be able to assign a mentor to every expat on assignment. If previous experience is limited or you only have a small number of employees to draw from, consider developing a pilot programme for first time expats. If you don’t have experienced expats to match as mentors then consider an expat support team, assigning an expat: a member of HR in head office, an experienced manager in their home office, and an experienced manager in their new location 313 CU IDOL SELF LEARNING MATERIAL (SLM)
Establish activities and guidelines Flaws in mentoring programme design and a lack of participant direction are two of the reasons many standard mentoring programmes fail. Set your programme up for success by establishing what mentors and mentees should do with their time together. Allow participants the freedom to agree frequency of contact however having a framework to follow is often useful, Preparation: participants get to know each other and outline what they hope to gain from the relationship. Establishing agreements: identifying the work participants want to complete during the mentorship. Enabling: this is where the actual work takes place, this phase is likely to last a long time, possibly the length of an assignment. Closure: this is a time to reflect on the mentorship, what succeeded and what they would do differently. In an expat on a short-term assignment this may take place on the employees return. It might be useful to have some documentation for each stage to formalise the process and make step 4 much easier. The key to success with HR documentation is to make it as simple and accessible as possible. See if this is something your HR software can facilitate so it can be updated easily online. Acquire mentors and expat assignees for the programme Once guidelines have been established and agreed, it’s time to recruit participants. It’s useful to have a two-step process for this: General communication plan: this should inform employees at large about the expat mentor programme and eligibility criteria for participation. Staff meetings, intranets and internal newsletters are great ways to get the word out. Targeted communication: this communication is to individuals you would like to consider taking part, those who have successfully completed expat assignments in the past and those who are likely to go on an expat assignment soon. 314 CU IDOL SELF LEARNING MATERIAL (SLM)
Match mentors with expats This step can be most difficult and organizations approach it in different ways. Again, the size of your organisation and number of expats is likely to impact how this is completed. Some suggestions from Chronos include: Self-matching: where participants choose their own mentor/mentee. This might work well if numbers are small and programme owners do not have specific goals in mind for each relationship. Admin matching: programme owners match participants, this is particularly effective when you know certain employees have experience that their mentee could benefit from. Bulk matching: this may be the best option if you work with a large multinational organisation. HR software is used for entering willing participants information into and then they are then matched based on various criteria. Hybrid matching: for many businesses a combination of the above options may work best. Monitor and evaluate results: Essential to the overall success of an expat mentorship programme is evaluation. Use a mix of hard and soft goals for this. Ultimately for an expat mentoring programme, you should see a decrease in expat failure and more successful assignments. However, it is also worth tracking the careers of those who have participated, do they have higher promotion or retention rates once they repatriate than those who did not? There is no doubt setting up a mentoring program is a lot of work for Human Resources and participants alike but if executed correctly the bottom-line results make it worthwhile. Expatriate mentoring models. 315 CU IDOL SELF LEARNING MATERIAL (SLM)
Harvey and Wiese (1998) proposed an expatriate mentoring model. Compared to other mentoring models in the domestic setting, the characteristics of this model are its alignment with the three expatriation phases and its focus on culture, level of change, and mentors’ roles. In each of the three expatriation phases, the model has three levels of main components: national culture, organizational culture, and mentor characteristics. The mix and integration of those three components influence expatriate mentoring in each phase. Downes, Thomas, and Singley (2002) summarized the appropriate mentor and mentor’s roles in each expatriation stage from Harvey and Wiese’s (1998) expatriate mode as follows. Harvey and Wiese’s model is very helpful in conceptualizing expatriate mentoring in terms of providing expatriation-specific points of consideration such as expatriation phases, national and organizational culture and their level of change. It also specifies the mentor’s nationality and the roles to which mentors can contribute to. Though the model provides a conceptual framework to better understand expatriate mentoring in the whole process, it does not explain much about the nature, antecedents, and outcomes in each stage of the expatriate mentoring. Fig 13.4.2 : Harvey & Wiese Mentor Model 13.5 EMERGING TREND IN EXPATRIATE TRAINING AND DEVELOPMENT Some of the emerging trends in the area of Expatriates Training and Development are mentioned below: 316 CU IDOL SELF LEARNING MATERIAL (SLM)
Over Reliance on Pre-departure Training As an aspect of broader cross-cultural training, pre-departure training programs tend to predominate. Schullion and Brewster (2001) draw attention to emerging European research which attacks the conventional wisdom behind expatriate training and development programmes. This research questions the validity of the assumption that cross-cultural training should take place only before the international transfer. It appears that there is still much informality in training (Celeya and Swift, 2006) and it is suggested that HRD for future expatriate managers is more likely to involve frequent crossborder job swaps, and short assignments working in global multicultural teams (Forster,2000; Schullion,2001). Tailored Expatriate Training After reviewing some of the American models of expatriate training and development, Schullion and Brewster (2001) propose that it may be worthwhile examining further some of the European models. In particular, they point to the nature of European frameworks which have tailored made programmes to suit the needs of the individual and the organization. They contend that in the future, a more tailored made approach to expatriate training is likely to be the way forward particularly in light of the rapidly changing training needs of expatriates (Collings et al., 2007). Use of Short-Term Overseas Assignments It is observed that more and more large firms are increasingly relying on short-term overseas assignments instead of the traditional expatriate posting (Colings et al., 20007). These developments and initiatives suggest new ways of developing international assignees and expatriates. Research evidence says that even the training which is provided to short term assignees is not so specific to the country and involves less extensive cross-cultural training than is offered to expatriates (Tahvanainem et al.,2005). But, it is argued that whether traditional expatriates or short term assignees all require cross-cultural training and awareness so as to reduce adjustment problems. 317 CU IDOL SELF LEARNING MATERIAL (SLM)
Real-time Training Mendenhall and Stahl (2000) direct attention away from the traditional topic of cross cultural training to discuss future training needs that organisations must focus on. They distinguish between two types of in-country training delivery methods: traditional and real time. Traditional is the formal classroom lecture where all the expatriates receive the same content. Hence, it is inflexible and does not meet the needs of individual assignees. Real-time delivery on the other hand is tailored to the needs of the individual in the form of personal counselling or coaching by experts. Given the advantage of real-time training, organisations incorporate it into their cross cultural training and development programmes. Assessment and Development Centres Another emerging issue in the development of expatriates is the use of assessment centres. Assessment centres are increasingly being used to equip expatriates with global management skills and cross cultural competency (Stahl, 2001). These centres are designed to evaluate managers who are nominated for an international assignment on their cross cultural skills and provide feedback on their strengths and weaknesses for such assignments. Self-training using Electronic Media This is another emerging area in HRD for expatriates for self-training based on electronic media such as software and the internet. In some cases, the electronic training media is highly suitable for expatriate’s families and other dependents who may not be participating in pre- departure training programmes offered by the employing organizations (Mendenhall and Stahl, 2000). International Job Rotation International job rotation involves sending employees on a series of short-term assignments to different countries. These kinds of training are increasingly used by companies due to increasing globalization and the need for cross-cultural skills which is making it more relevant for all employees involved in international work whether they are based in the home country or a subsidiary in a host country (Caligiuri et al., 2005; Harvey,1997). 318 CU IDOL SELF LEARNING MATERIAL (SLM)
Personal Security Finally, the issue of personal security particularly in relation to global terrorism, as an emerging issue in the area of expatriate training and development. Also, health-related problems linked to business travel are also of consideration in training and development of expatriates. Certain countries pose a threat for foreign nationals to stay and work there and hence companies need to deal with such personal issues. 13.6 SUMMARY Development - It is an on-going systematic procedure in which managerial staff learns to enhance their conceptual, theoretical knowledge Training Methods A. CROSS CULTURAL TRAINING METHODS: Didactic Training: Didactic training is most often provided in informal briefings, which can be given in a classical lecture form or with less structured methods such as casual conversations with experts. Experiential Training: Experiential training is conveyed using a number of methods including, not only, practical exercises, workshops and simulations, but also more genuine concepts such as look-see visits to the host country (Caligiuri et al., 2001). Attribution Training: Attribution training tries to give the expatriate skills in thinking and acting as a host national. Language Training: Language training involves teaching the expatriate the native language and/or the business language of the host country. Cultural Awareness Training The goal of Cultural Awareness training is to give the expatriate insight about the concept of culture and cultural differences, by teaching awareness about the home culture. Interaction Training: The method of Interaction training is based on interactions between new expatriates and expatriates with more experience of the local culture. 319 CU IDOL SELF LEARNING MATERIAL (SLM)
Cognitive Behavior Modification The expatriates get to name what activities they find rewarding or punishing in the home culture context and apply the same in the host country. B. Sequential Training - Sequential training starts before departure and then progresses in steps through the post-arrival adjustment phases, during which different types of CCT is applied, and can extend all the way to repatriation issues C. Cross Cultural Intelligence - Interactions over cultural borders require skills that can be labelled as cultural intelligence. Management development process consists of assessing the company’s strategic needs appraising the managers’ current performance and developing the managers. International Development Process - It demonstrates the relationship between international recruitment and selection, as well as training and development. Development Methods: International Assignments: International assignments are often determined by duration and vary according to the purpose and objectives of the task. Inpatriate assignments: One alternative to expatriation is inpatriation, which involves the transfer of subsidiary managers to the HQ for a specific period of time. Short Term Assignments: Postings between 1 to 12 months in length Self-Initiated Assignments: When assignees make their own arrangements to find work abroad. A virtual assignment does not require the individual to physically relocate to a foreign organizational unit but rather distributes international responsibilities as managed from the individual’s home base A. Expat mentoring is a formalized process where a more experienced employee works with an expat employee to help them succeed on assignment. 320 CU IDOL SELF LEARNING MATERIAL (SLM)
Expat Mentoring Process: o Establish requirements for participation o Establish activities and guidelines o Acquire mentors and expat assignees for the programme o Match mentors with expats o Monitor and evaluate results: Expatriate mentoring models- The phases and its focus on culture, level of change, and mentors’ roles. Emerging Trend in Expatriate Training and Development o Over Reliance on Pre-departure Training o Tailored Expatriate Training o Use of Short-Term Overseas Assignments o Real-time Training o Assessment and Development Centres o Self-training using Electronic Media o International Job Rotation o Personal Security 13.7 KEYWORDS 1. Briefing - an act or instance of giving precise instructions or essential information 2. Cognitive - relating to or involving the processes of thinking and reasoning 3. Short Episodes - an event that is distinctive and separate although part of a larger series 4. Annual Budget - An annual budget lays out a company's projected income and expenses for a 12-month period. 5. Decentralization - the transfer of control of an activity or organization to several local offices or authorities rather than one single one. 321 CU IDOL SELF LEARNING MATERIAL (SLM)
13.8 LEARNING ACTICV 1. Justify whether Interaction Training helps the expatriate’s adjustment process. _________________________________________________________________________ __________________________________________________________________________ 2. Discuss the benefits of Self- Initiated Assignments _________________________________________________________________________ __________________________________________________________________________ 13.9 UNIT END QUESTIONS A. Descriptive Questions: Short Answers: 1. Write a note on the concept of Development. 2. Compare any two Cross Cultural Training Methods. 3. Explain the Cross-Cultural Intelligence method of training 4. How Management Development process contribute in Organizational Development? 5. Describe the International Development Process. Long Answers: 1. Discuss the significance of Cross-Cultural Training methods with its types. 2. Describe the Sequential Training method and state its significance. 3. Brief about the mentoring method of Development. 4. What are different types of International Assignment? Explain each type. 5. Compare the International Training Methods with the International Development Methods. B. Multiple Choice Questions: 322 1. What is Covered in Didactic Training? a. Requirements for the job b. Includes Look See Trip CU IDOL SELF LEARNING MATERIAL (SLM)
c. Practice Interactions d. Simulation Games 2. Which method may also teach tangible and understandable information about the certain characteristics and behaviors of the new culture that is important to know before, or just after, arrival? a.Cognitive Behavior Modification b. Fact Based Training c. Cultural Awareness Training d. Attribution Training 3.______________– has been developed to combine the benefits of both pre-departure and post-arrival training. a. Cross Cultural Intelligence b. Experiential Training c. Language Training d. Sequential training 4. What helps to fosters a geocentric approach to the allocation of human resources in MNCs? a. Short term Assignments b. Self- Initiated Assignments c. MNC staffing policies d. Virtual Assignments 5. Which mentor method is assumed to be the best option for a large multinational organisation? a. Self- matching b. Bulk matching c. Hybrid matching d. Admin matching 323 CU IDOL SELF LEARNING MATERIAL (SLM)
Answers 1 – a; 2 – b; 3 – d; 4 – c; 5 – b; 13.10 REFERENCE Text Book: Wilhelm Schmeisser, Dieter Krimphove, Rebecca Popp, International Human Resource Management and International Labour Law, De Gruyter Oldenbourg, Peter J. Dowling, Marion Festing and Allen D. Engle, Sr., International Human Resource Management, Cengage Learning EMEA By Veronica Velo, Cross-Cultural Management, Business Expert Press Srinivas R. Kandula International Human Resource Management , SAGE Publications Pvt. Ltd Pravin Durai, Human Resource Management, Pearson India Reference Book K Aswathappa , Sadhna Dash, International Human Resource Management, McGraw Hill Gary Dessler, Fundamentals of Human Resource Management, Pearson Ekta Sharma, Strategic Human Resource Management and Development, Pearson India Parissa Haghirian, Successful Cross-Cultural Management, Business Expert Press Open Sources: https://www.Shrm.org/ https://www.ncbi.nlm.nih.gov/ https://www.futurelearn.com/ International Journal of Human Resource Studies changingminds.org assignmentpoint.com interculturalmanagement.fandom.com diva-portal.org 324 CU IDOL SELF LEARNING MATERIAL (SLM)
cvs.edu.in strategy-business.com www.mbaknol.com (Integrity-Asia & ispatguru) publications.anveshanaindia.com smallbusiness.chron.com resources.workable.com whatishumanresource.com resources.workable.com jigsawacademy.com www.personio.com 325 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT - 14: CROSS-CULTURAL HRM STRUCTURE 14.0 Learning Objective 14.1 Introduction 14.2 Diversity In Workplace 14.2.1 Concept 14.2.2 Types Of Diversity Management: 14.2.3 Characteristics of Diversity Management 14.3 Diverse Workforce: Asset Or Liability 14.4 Diversity Audit Tool 14.5 Talent Management 14.6 International HR Practices 14.7 Summary 14.8 Keywords 14.9 Learning Activity 14.10 Unit End Questions 14.11 Reference 14.0 LEARNING OBJECTIVE After studying this unit, you will be able to: Explain the Performance Management in the International Business Describe the pre-requisites and factors affecting International Performance Management Outline the challenges in the International Performance Management Describe the significance of Developing Multinational Staff and Team 326 CU IDOL SELF LEARNING MATERIAL (SLM)
14.1 INTRODUCTION Companies may now hire and manage staff from all over the world and in multiple time zones thanks to technological advancements. Companies are developing particular policies and programmes to improve employee inclusion, promotion, and retention of employees from all origins and cultures. The programmes and policies are intended to create a friendly atmosphere for groups that have previously been denied access to employment and higher- paying occupations. The concept of diversity started in North America in the mid-1980s, spreading to other parts of the world afterward. Then United States President, Ronald Reagan, originally vowed to dismantle the equality and affirmative action laws that were viewed as legal constraints. Equality and affirmative action employees presented the argument that diversity management should be seen as a competitive advantage to US companies rather than as legal constraints. The discussion attracted research into the concept of diversity and the benefits of diversity management. The globalization of the world economy and the spread of multinational corporations brought a new twist into the concept, in that diversity management does not solely refer to the heterogeneity of the workforce in one country but to workforce composition across countries. 14.2 DIVERSITY IN WORKPLACE 14.2.1 CONCEPT Diversity in the workplace refers to an organization that intentionally employs a workforce comprised of individuals with a range of characteristics, such as gender, religion, race, age, ethnicity, sexual orientation, education, and other attributes. Diversity in the workplace leads to a plethora of benefits - both from an internal and external perspective. However, that doesn’t mean implementing diversity initiatives at work isn’t without its unique set of challenges. In the beginning, the term diversity was used primarily to address racial and ethnic diversity. However, in recent years, the term workplace diversity has been expanded to encompass many different characteristics, such as: Race, Ethnicity, Gender, Age Sexual 327 CU IDOL SELF LEARNING MATERIAL (SLM)
orientation, Physical abilities and disabilities, Religion, Political beliefs, Education, Socioeconomic background, Geographical orientation,Language, Culture Companies with diversified workforce experience many advantages over those who don't have diversified employees. Variety of different perspectives Increased creativity Increased problem-solving Increased profits Improved employee engagement Reduced employee turnover Improved company reputation Improved hiring results 14.2.2 TYPES OF DIVERSITY MANAGEMENT: The following are the two types of diversity management: 1. Intranational diversity management Intranational diversity management refers to managing a workforce that comprises citizens or immigrants in a single national context. Diversity programs focus on providing employment opportunities to minority groups or recent immigrants. For example, a French company may implement policies and programs with the aim of improving sensitivity and providing employment to minority ethnic groups in the country. 2. Cross-national diversity management Cross-national, or international, diversity management refers to managing a workforce that comprises citizens from different countries. It may also involve immigrants from different countries who are seeking employment. An example is a US-based company with branches in Canada, Korea, and China. The company will establish diversity programs and policies that apply in its US headquarters, as well as in its overseas offices. 328 CU IDOL SELF LEARNING MATERIAL (SLM)
The main challenge of cross-national diversity management is that the parent company must consider the legislative and cultural laws in the host countries it operates in, depending on where the employees live. 14.2.3 CHARACTERISTICS OF DIVERSITY MANAGEMENT 1. Voluntary Unlike legislation that is implemented through sanctions, diversity management is a voluntary organizational action. It is self-initiated by organizations with a workforce from different ethnicities, religions, nationalities, and demographics. There is no legislation to coerce or government incentives to encourage organizations to implement diversity management programs and policies. 2. Provides tangible benefits Unlike in the past when diversity management was viewed as a legal constraint, companies use the diversity strategy to tap into the potential of all employees and give the company a competitive advantage in its industry. It allows each employee, regardless of his/her race, religion, ethnicity, or origin to bring their talents and skills to the organization. A diverse workforce enables the organization to better serve clients from all over the world since diverse employees can understand their needs better. 3. Broad definition While legislation and affirmative action target a specific group, diversity management uses a broad definition since the metrics for diversity are unlimited. The broad definition makes diversity programs more inclusive and has less potential for rejection by the members of the majority group or privileged sections of the society. 329 CU IDOL SELF LEARNING MATERIAL (SLM)
14.3 DIVERSE WORKFORCE: ASSET OR LIABILTY Advantages of Diversity Management Program Diversity can be a sort of strategy which enables organization to gain competitive advantage in the market competitive landscape. Managing cultural diversity is one of the key factors differentiating a particular company at factors such as (1) efficient work practices or procedures, (2) technological innovation or change, (3) product or services related innovation and lastly, (4) client or consumers related services. However, there are more contributions of managing diversity to the strategic objectives of a company. Improved and enhanced competencies in terms of customer services. As a matter of fact, diverse workforce will often mean diverse expertise, talent, experience and capabilities in the employees. If a manager understands the intricacies and complexity of how to manage diversity effective, he will be able to put the right person into the correct position, by minimizing his weaknesses while enhancing the particular employee’s strength. From this perspective, a diverse workforce enables a manager to choose the correct candidate for a particular position in the organization. Able to compile and improve the strength of customer intelligence. As we employ diverse workforce, we can indirectly tap into the knowledge and experience of these workforce. In the era of information, we understand that marketing intelligence or customer intelligence has becoming more and more important. Diversity in workforce in this picture can help a company to compile and collect more relevant and effective data on the market place. Ability to operate effectively as well as efficiently in a global context. As a well- known fact, the entire world is a colorful depiction of diversity. Thus, to go global, a diverse workforce is some sort a basis requirement. We simply need the local experts to assist us in managing business units at foreign countries or simply to expand market share in the other countries. Thus, it is not hard for us to understand that a diverse workforce will enable a company to operate more effectively and efficiently. 330 CU IDOL SELF LEARNING MATERIAL (SLM)
Able to produce more satisfied workforce, and thus leading to more productive workforce. If a company can manage diversity in a proper way, then the individual employee will no longer need to clone or purposely changed himself to adaption of the corporate culture. This can often lead to a more satisfied workforce. A more satisfied workforce, will in turn, leads to more productive workforce. Effective managing of diversity enables reduction in industrial disputes. Of course, proper management of diversity can also ensure less industrial dispute or court case arises from employees’ issues. Diverse workforce can lead to increased creativity and innovation. Diversity can produce synergy and creativity and innovative as well. A group of different people is better than a result produced by a single person. The combined efforts are always much outstanding. Having better chance to attract higher quality employees from a larger pool of employees. As a company prepare or has already adopted the mindset of having diversity is beneficial, then the company automatically access to a diverse pool of human talents, which means that the company can choose the employees from a larger pool of workforce. As now the choices are enlarged, then we can have access to better talents around the world, or in other words, we can access to the world class talents around the globe. Disadvantages of Diversity Management Program: Poorly integrated heterogeneous groups can be as damaging to the organization as overly integrated homogeneous groups. Apparently, managing diversity is an art, while although the contribution to a company strategic management picture is bright, the execution is nothing easy. Besides, unfortunately, there are also evidences that diversity can bring disadvantages to companies as well. For example, it is found that teams with diverse employees usually take longer to perform effectively. Besides, diversity also brings numerous communication problems as well as “faultiness” in informal group dynamics. At some serious cases, diversity can also be a source of conflict, that can cause issues such as reluctant to share information among workforce, employee morale deterioration problems, and higher turnover due to degradation of job satisfaction. 331 CU IDOL SELF LEARNING MATERIAL (SLM)
Not only that, it is also mentioned that there can be various drawbacks due to implementation of diversity management program in the short term. For example, if handled insensitively, a diversity management program may invade employee privacy. Also, implementation of the diversity management program may be expensive in the short term. Apart from that, during the implementation process, deep seated prejudices within employees may be brought into the open, causing short-term tension. Particularly for a poorly handled program, conflicts and ill-feeling may be the end results for managers to handle. Case: There are various cases or real-life stories showing that diversity management can contribute to improved productivity, sales, market share, or profitability. There are three examples shown in the following section. 1. The McGraw-Hill Companies emphasizes diverse workforce management. The reason is to tap into different talents available and critical to enhance the company presence worldwide. One program of the company talent management strategy is called the Associate Development Program (ADP). Since the program began in 1993, it has attracted talented individuals from top MBA business schools who are diverse in race, ethnicity, experience and perspective. All these diversity management programs had enable the McGraw-Hill Companies to leverages talent in global markets, on a worldwide basis. 2. Reebok, the well-known sport company has also been benefiting from a diversity management program. In the year of 1980s, a group of women at Reebok complained the fact that they could not find a good aerobics shoe. Listening to that complaint, Reebok began marketing aerobics shoes. The outcome is outstanding – within just a period of two years, the company went from a $12 million-a-year shoe company to a $3 billion powerhouse. Since the incident, the company started to be aware of the importance of diversity. According to the CEO, Paul Fireman said that in order to become diverse and compete globally, a company must find people with different stories to tell at every level of employment, and then provide chances and opportunity for them to talk and perform. 332 CU IDOL SELF LEARNING MATERIAL (SLM)
3. IBM has a century-long diversity heritage based on the company’s belief and philosophy that diversity is the “bridge between the workplace and the marketplace”. Such a belief and the act of valuing diversity are central to the company’s ability to win in the global marketplace. Today, diversity management permeates every corner of IBM’s management and technical operations and management style. 30 members of IBM’s Worldwide Executive Council are involved in guiding specific corporate- wide diversity initiatives. They are held accountable for recruitment, retention and advancement of all talent and, most important, linking IBM’s diversity initiatives to the global marketplace, which is in turn the main reason that IBM has been able to stay on top of the business landscape for decades. 14.4 DIVERSITY AUDIT TOOL The Diversity Audit Tool (DAT) was developed by investigating practices in the Information Communications and Technoloy (ICT) Sector (Cukier, 2009). It was refined through examining other employment sectors including: financial services, police services, education, and health care. The initial tool was informed by the current state of women in the ICT sector – including barriers to and strategies aimed at increasing their participation. Interviews with organizations in the sector, along with secondary research, identified practices that had previously been successful to increase participation and advancement. These results were used to create the DAT for organizations to assess their policies and practices. The six categories of the DAT systemically catalogue the ways in which an organization can communicate its commitment to increasing diversity and inclusiveness at a number of different levels. The six key areas of the DAT are as follows: 1. Leadership and Governance: This aspect demonstrates the importance of the top- down implementation of diversity practices and policies. For diversity initiatives to be successful, they must have the support and commitment of senior management who also have the power to influence change across the organization. 2. Strong and Transparent Human Resources Practices: These represent the changes that the organization makes to how it recruits, develops, manages, and engages with 333 CU IDOL SELF LEARNING MATERIAL (SLM)
its employees. The commitment to diversity is, in other words, “reinforced by changing the organizational policies and processes” (Kreitz, 2007, p. 3) in order to attract, develop, and retain individuals from diverse groups. 3. Quality of Life and Organizational Culture: Improving the quality of life offered by the organization as well as improving the organizational culture so that it is more inclusive aims to reduce barriers to entry, increase the retention of employees, and create an environment where the needs of employees from diverse and underrepresented groups are met in ways that are beneficial to the organization as a whole. In other words, to create an organizational culture and quality of life for its employees that is sensitive to the needs of a diverse workforce. 4. Measure and Track Diversity: Unless the organization measures and tracks the results of the implementation of these policies and practices ensure that the stated commitment to diversity is translated into action. Furthermore, tracking diversity through surveys and interviews as well as publishing those results serves to reinforce the organization’s commitment to diversity. Similarly, these results can also be used as a benchmark against which an organization can measure its progress in relation to other firms in its sector or industry. 5. Integrate or Mainstreaming Diversity across the Value Chain: This allows the organization to clearly and actively communicate its commitment to diversity both internally and externally. This aspect of the DAT demonstrates that organizations cannot just passively enact a commitment to diversity. Rather, for these initiatives to be successful, diversity policies and practices must be extend throughout the value chain and outwards towards the external environment. 6. Developing the Pipeline: This section of the DAT measures the efforts of the organization to develop its resources – including efforts to proactively reach out to groups in order to attract future participants in the labour force. (Cukier, 2009) Planning and implementing a diversity audit are an essential process. Since it is in the nascent stages as yet in India, here are a few key pointers on what to bear in mind when conducting this. 334 CU IDOL SELF LEARNING MATERIAL (SLM)
The audit should cover all groups of employees and as many HR processes of the organization as it can, since diversity impacts all people and business-related elements. Also, the audit could focus on both qualitative and quantitative data. Defining the purpose is critical – Apart from assessing current situation, the audit may have multiple purposes such as gauging employee feedback, assessing business impact of diversity interventions ( ROI), future course of action, deviation from the overall strategy if any and so on. At this stage, it is also important to define how frequently you want to conduct the audit. Typically once a year would be suitable. Team – The team that will conduct and analyse the results of the survey should be created. In this team not only is it important to have members from all levels of the organization it should also cover demographic and locational differences. Representation from as many segments as is practically possible should be the aim. Questionnaire – The questionnaire is of paramount importance, since the design of this will determine the quality of responses that the team will receive, from the audit. It will also determine how easy or hard it will be to analyse the data and connect it to business impact. Hence spending time and effort on this is important. Some aspects that this should capture for the diversity audit to be successful, are as follows – o Alignment of manager behaviour to organization’s diversity goals o Benefits and Workplace flexibility ( e.g. leave, flexi-timings etc) o Infrastructure ( e.g. for new mothers, differently abled employees etc) o Employer Brand and Website o Employee feedback on people processes that foster inclusion o Employee feedback on diversity policy’s application and changes needed o Coverage of diversity elements across HR processes ( e.g. recruitment, training, performance management) to indicate a strong strategy. o Feedback on the grievance redressal procedure in the event of harassment on diversity grounds. Communication plan – The communication plan before, during and after the audit will drive the audit results. Before the survey’s launch emphasising on open and frank participation is essential. It is also critical to let the employees know that their 335 CU IDOL SELF LEARNING MATERIAL (SLM)
responses will remain confidential. The focus should also be on ensuring that there is an element of trust about the fact that this information will be assessed in seriousness and action steps taken accordingly. Organizations that realize the positive and negative impact of diversity, will put in significant effort to diversify their workforce and also ensure that a regular tracking mechanism is in place to measure their success, in a tangible and intangible manner. The reason for same is that investments in diversity interventions will need to be justified since it is often difficult to link the financial results that diversity can have. Hence, an audit or survey, is not only introspective but also a critical buy-in tool to have the top management aligned to the thought process. Diversity interventions and approaches will need the support of the leadership, which will typically come when they see the business connect. That is what an audit provides in a succinct yet pertinent manner. How Can Diversity Management Help Companies? Here are some of the key benefits when it comes to workplace diversity benefiting companies: Promoting an understanding of target groups from other cultures. Ensuring improvements in customer service. Driving innovative thinking in the company. Boosting research and development. Optimizing decision-making processes thanks to different perspectives. Establishing new business relationships and partnerships. Opening up new markets. But, diversity management and managing diversity, more broadly, does not only have a positive effect on the economic potential of a company. Businesses also benefit from genuine diversity in terms of their employees. How Can Diversity Management Benefit HR Leaders? HR departments also benefit from diversity in the workplace. When done right, it can lead to: Greater employee satisfaction, because the team feels understood and valued. An interesting and inspiring working environment for employees. 336 CU IDOL SELF LEARNING MATERIAL (SLM)
A positive company image that attracts top talent and high potential associates. The enrichment of corporate culture. Stronger employee loyalty to the company. So, how can you take the importance of diversity management and make it real? Here’s how diversity management is implemented in a way to drive business… 14.5 TALENT MANAGEMENT A Talent Management strategy is a construction of ideas, methodology and processes that help interconnect employee interests to align with greater business objectives and goals. It’s also used to support: Learning and succession planning for employees Enhancing the recruiting to onboarding for new hires Building a company culture worth working for through proper performance evaluations Growing employer brand Attaining and retaining top talent When an employer has all of these processes aligned with one another, they flourish. How one can proactively attract a diverse workforce Attracting a more diverse workforce is becoming important because businesses are realizing that in order to really attain the best talent out there, they will need to appeal to a vast amount of people. Employers can implement a talent management strategy with proven methods to attract a more diverse workforce. Some talent management practices they should consider to implement to help improve diversity include: Blind resume screening Building a diverse talent-acquisition team Ensuring inclusive keywords in job descriptions Emphasizing value-based hiring Finding niche job boards to seek out nontraditional candidates 337 CU IDOL SELF LEARNING MATERIAL (SLM)
By implementing strategies directed at improving diversity, employers and employees will find themselves building a culture they enjoy working for, which will help improve overall operations significantly over time. How a talent management strategy provides a competitive advantage After successfully implementing a winning talent management strategy, employers will enjoy numerous fruits to their labor by aligning their interests with their employees’ goals, ambitions and influences. With this harmonic collaboration and access to the right HR automated solutions, employers will build their competitive advantage over their competitors by: Simplifying the recruiting process for applicants significantly Creating the perfect onboarding program for new hires to be successful Aligning employee goals with greater business strategy and objectives Continuing education for employees to learn and grow new skills Strategizing succession plans for promising employees as well as for future movement Strengthening employer brand by improving talent management processes and giving employees access to technology Developing a culture that attains and retains the best talent How to Build a Talent Management Strategy When designing a new talent management strategy, employers will need to think about what every workflow will look like within their processes of: Recruitment and applicant tracking Onboarding Performance management Learning management Succession planning 338 CU IDOL SELF LEARNING MATERIAL (SLM)
Figuring out how to identify and improve workflows is no easy task, however. For each process under the talent management umbrella, businesses will need to run through a number of steps to be successful. Steps to fix/improve a talent management strategy Building and improving a talent management strategy should begin with the steps below. 1. Identify business strategy, priorities, objectives and goals Think about what the long-term goals are Consider whether there are new directions to go 2. Pinpoint business motivators and what challenges are being faced Think about both internal and external challenges Industry changes? Compliance changes? Technology issues? Change in employee behavior? 3. Plan a Gap Analysis Future trip where you need to be and evaluate where you currently are Identify risks of not addressing gaps Example: A business wants to shorten its application process significantly for interested candidates. They will need to identify the areas in their process where candidates get hung up on the most, find the gaps and address it. They may have identified that their online application is asking candidates for too much information which ultimately turns them off from even completing the forms. After identifying the problem, employers can address it and improve the process. 4. Focus on defining HR priorities and objectives After challenges and goals are pinpointed, align with the HR department to create SMART goals that help center the employee population with employer goals. SMART is defined as Specific, Measurable, Achievable, Realistic/relevant and Time-bound. When measuring the successes of their talent management strategy, businesses should include both the implementation and effectiveness ratings. 339 CU IDOL SELF LEARNING MATERIAL (SLM)
5. Measure results and be transparent As processes are updated over time, it’s important that employers continue to measure the effectiveness of them to make sure their changes are indeed working or not. After evaluating the results, they should be communicating the successes and needed improvements to help increase transparency. With access to quality reporting, employers will be able to address changes to their talent management processes confidently and head on. Best Practices of Diversity Management Organizations can implement these best practices to maintain a competitive business advantage and also capitalize on the potential of its diverse workforce. The following are the best practices that an organization can implement: 1. Commitment from top management Workforce diversity can succeed if it is adopted by a shared vision within the company’s top management. The senior executives of an organization are responsible for policy formulation, and they can promote or eliminate workplace diversity depending on the policies they make. When the senior management fails to show commitment to implementing the diversity strategies, the diversity plan becomes severely limited. 2. Identify new talent pools In an organization where more people are leaving the workforce than are being hired, management must immediately employ fresh talents. Most companies prefer traditional new- employee sources, such as competitor organizations and graduate schools, to recruit the best talent. Companies should look beyond the traditional new-hire sources and explore other talent pools, such as veterans exiting the military, minority groups, and talents from other regions or countries. Hiring individuals with diverse skills and knowledge can help companies to deliver better quality services to a global client base. 3. Provide a safe avenue for dialogue on diversity-related issues 340 CU IDOL SELF LEARNING MATERIAL (SLM)
Organizations should create resource groups where employees from similar backgrounds can connect and communicate their concerns in a safe environment. People from minority groups often feel isolated from organizations and may, therefore, increase employee turnover. Creating avenues for mentorship, networking, and socializing helps to increase employee engagement and performance levels. Successful staff members can demonstrate how they found success within the organization and mentor new staff members. 4. Make diversity part of the company’s objectives An organization that practices workforce diversity should not shy away from letting the world know that the organization embraces diversity and works with people from all backgrounds. The organization can start by encouraging and supporting its staff who volunteer in different causes such as a disability walk or an HIV/AIDs awareness forum. It can sponsor fund drives to raise funds to support vulnerable and underrepresented populations. The organization can also offer internships and scholarships to minority groups. 5. Distinguish between diversity and affirmative action Various governments around the world have implemented affirmative action programs to provide opportunities for women and other minority groups. While such affirmative actions complement diversity, organizations should make a distinction between affirmative action and diversity. Diversity is proactive rather than reactive, and it requires a change in the organization. People from diverse cultures, backgrounds, and beliefs bring a range of work styles, thoughts, and perspectives that an organization can use to improve efficiency and encourage creativity in product development. 14.6 INTERNATIONAL HR PRACTICES: As the year draws to a close, diversity, equity, and inclusion (DEI) remain top of mind for HR and learning and development professionals. A focus on DEI, both as an organizing principle of workplace culture and as a strategic business advantage, is an increasingly important topic for organizational leaders outside of the HR department in 2021. The 341 CU IDOL SELF LEARNING MATERIAL (SLM)
recognition of the workplace as a working and learning community for an increasingly diverse workforce has made all of us more attuned to the need for continued discourse, education, and HR training around diversity, equity, and inclusion. Today’s workforce is one of the most diverse in our nation’s history. In the workplace, the definition of “diversity” is both expanding upon quantifiable demographic traits like race, ethnicity, and gender; and recognizing the importance of the intersection of identities on the employee experience. While there is a clear through line of a diverse workforce to better business outcomes such as generating new, innovative ideas and better business performance; leaders are having to focus intentionally on the organization’s workplace culture, employee engagement and satisfaction, and the legal implications of bringing together a workforce that is anything but homogenous. Let’s take a look at 4 diversity, equity, and inclusion trends for 2021. 1. A Focus on the Multigenerational Workforce The workforce is aging—and changing considerably in terms of generational makeup. There are now five, or more, generations in the workplace ranging from the Silent generation (those born between 1928 and 1945 with some still holding down full or part-time jobs), Baby Boomers (born between 1946 and 1964), Generation X (born between 1965 and 1980), Millennials or Generation Y (born between 1981 and 1996) and the newest cohort, Generation Z (born since 1997). With each of these generations comes distinct employee expectations around topics such as reskilling/upskilling in the age of automation, holistic employee wellness programs (with a fine point on mental wellness), connecting work to social impact and purpose, flexible work arrangements, leveraging social media within and outside the workplace, crystallizing what it means to “bring your full self to work”, and a myriad of other issues that will impact future inclusion and diversity training. 2. The Impact of Unconscious Bias in the Workplace Implicit or unconscious bias, the tendency to process information based on unconscious associations or feelings, is not necessarily a new discussion topic in the workplace. What you can expect to see is a focused lens on how the biases, particularly of managers and leaders, 342 CU IDOL SELF LEARNING MATERIAL (SLM)
have an impact on an organization’s culture and the progress (or lack thereof) towards a diverse and inclusive workplace. A recent Harvard Business Review Article highlights the impact that affinity and gender bias have on the relationships between women in the workplace. Bringing together a workforce that has a variety of perspectives, experiences, lived experiences and is representative of the communities that organizations serve is the comparative advantage of diversity. You can expect more information on how our personal biases (because we all have them!) influence workplace decisions and ways business leaders can minimize the impact of unconscious bias. 3. Supporting Gender Identity and Expression Gender identity and gender expression/presentation have been a much-talked-about subject in recent years, with rising awareness of the challenges faced by employees who do not identify with their sex assigned at birth. In September, Merriam-Webster recognized “they” as a singular, non-gender-specific pronoun. Organizations around the country—from retail settings like Target to corporations—are grappling with issues related to the use of gender-specific restrooms, many simply offering gender-neutral options. HR departments are focused on providing healthcare benefits that are inclusive of employees who are transitioning. Managers are in need of education around the language and their responsibility related to an employees’ gender identity and expression. As the movement to recognize and accept transgendered and gender non-binary employees continue, it’s likely we’ll see more focus on updating diversity, equity, and inclusion training along with a need to have internal conversations and education around gender-inclusivity. 4. Shifting From Diversity and Inclusion to Diversity, Equity, and Inclusion The past few years have brought to the forefront that a focus on diversity, or increasing representation of people from various backgrounds, perspectives, and experiences, is only part of the equation. Inclusion, making space and amplifying the voices of everyone in the workplace, equally, is another. Both of these concepts will remain a top focus for organizations in years to come. 343 CU IDOL SELF LEARNING MATERIAL (SLM)
Many forward-leaning organizations are also focusing on the idea of ‘equity’ as part of their overall strategy. Equity in the workplace manifests in a range of ways from unpacking decision points that lead to pay inequity, exploring equity in talent development investments, and leveraging initiatives like Business Resource Groups (or Affinity Groups) as a vehicle to address equity succession planning. The focus on equity in the workplace will be a magnified topic as businesses are being called to operate with a deeper level of transparency around compensation reporting, board representation, harassment reporting, advancement, and other talent management practices. 14.7 SUMMARY Diversity in the workplace refers to an organization that intentionally employs a workforce comprised of individuals with a range of characteristics, such as gender, religion, race, age, ethnicity, sexual orientation, education, and other attributes. Companies with diversified workforce experience many advantages. Types of Diversity Management: Intranational diversity management- Intranational diversity management refers to managing a workforce that comprises citizens or immigrants in a single national context. Cross-national diversity management- Cross-national, or international, diversity management refers to managing a workforce that comprises citizens from different countries Characteristics of Diversity Management o Voluntary o Provides tangible benefits o Broad definition The six key areas of the DAT are as follows: o Leadership and Governance: o Strong and Transparent Human Resources Practices: o Quality of Life and Organizational Culture: 344 CU IDOL SELF LEARNING MATERIAL (SLM)
o Measure and Track Diversity: o Integrate or Mainstreaming Diversity across the Value Chain: o Developing the Pipeline: A Talent Management strategy is a construction of ideas, methodology and processes that help interconnect employee interests to align with greater business objectives and goals. Steps to fix/improve a talent management strategy o Identify business strategy, priorities, objectives and goals o Pinpoint business motivators and what challenges are being faced Plan a Gap Analysis Focus on defining HR priorities and objectives Measure results and be transparent Best Practices of Diversity Management o Commitment from top management o Identify new talent pools o Provide a safe avenue for dialogue on diversity-related issues o Make diversity part of the company’s objectives o Distinguish between diversity and affirmative action International HR Practices o A Focus on the Multigenerational Workforce o The Impact of Unconscious Bias in the Workplace o Supporting Gender Identity and Expression o Shifting From Diversity and Inclusion to Diversity, Equity, and Inclusion 14.8 KEYWORDS 1. A value chain is a step-by-step business model for transforming a product or service from idea to reality. 2. Corporate culture refers to the beliefs and behaviours that determine how a company's employees and management interact. 3. Attuned - to adjust or accustom 345 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Unconscious bias (or implicit bias) is often defined as prejudice or unsupported judgments in favor of or against one thing, person, or group as compared to another, in a way that is usually considered unfair. 5. Gender identity is a term used to refer to an individual's internal identification with being male or female. 14.9 LEARNING ACTIVITY 1. Present the challenges involved in Workforce Diversity Management. ________________________________________________________________________ ________________________________________________________________________ 2. What factors are considered in planning and implementing a diversity audit ? ________________________________________________________________________ ________________________________________________________________________ 14.10 UNIT END QUESTIONS A. Descriptive Questions: Short Answers: 1. What is Diversity at Workplace? 2. Explain different types of Diversity Management. 3. State and explain any three key areas of DAT. 4. How Can Diversity Management Help Companies? 5. Write a note on the best Practices of Diversity Management. Long Answers: 1. Describe the Characteristics Of Diversity Management. 2. Justify the Diversity Management function is termed as an asset for global business. 3. Discuss Diversity Audit Tool. 4. Explain the Talent Management concept with reference to an International Business. 5. Brief about International HR Practices 346 CU IDOL SELF LEARNING MATERIAL (SLM)
B. Multiple Choice Questions: 1. Which diversity management may also involve immigrants from different countries who are seeking employment? a. Cross Cultural Diversity Management b. Intranational diversity management c. Standard Diversity Management d. Immigrational Diversity Management 2. Diversity also brings numerous communication problems as well as ________ in informal group dynamics. a. Irregularity b. “faultiness c. spoils d. complicates 3. What will determine the quality of responses in the audit? a. Interviews b. Observations c. Logs d. Questionnaire 4. Diversity interventions and approaches will need the support of the _______________ a. Strategic Plan b. Leadership c. Management Development Programs d. Training 347 CU IDOL SELF LEARNING MATERIAL (SLM)
5. How Can Diversity Management Benefit HR Leaders? a. The enrichment of corporate culture. b. Alignment of manager behaviour to organization’s diversity goals c. Benefits and Workplace flexibility ( e.g. leave, flexi-timings etc) d. Infrastructure Answers 1 – a; 2 -b; 3 – d; 4 – b; 5 – a; 14.11 REFERENCE Text Book: Wilhelm Schmeisser, Dieter Krimphove, Rebecca Popp, International Human Resource Management and International Labour Law, De Gruyter Oldenbourg, Peter J. Dowling, Marion Festing and Allen D. Engle, Sr., International Human Resource Management, Cengage Learning EMEA By Veronica Velo, Cross-Cultural Management, Business Expert Press Srinivas R. Kandula International Human Resource Management , SAGE Publications Pvt. Ltd Pravin Durai, Human Resource Management, Pearson India Reference Book K Aswathappa , Sadhna Dash, International Human Resource Management, McGraw Hill Gary Dessler, Fundamentals of Human Resource Management, Pearson Ekta Sharma, Strategic Human Resource Management and Development, Pearson India Parissa Haghirian, Successful Cross-Cultural Management, Business Expert Press Open Sources: https://www.Shrm.org/ https://www.ncbi.nlm.nih.gov/ https://www.futurelearn.com/ International Journal of Human Resource Studies 348 CU IDOL SELF LEARNING MATERIAL (SLM)
changingminds.org assignmentpoint.com interculturalmanagement.fandom.com diva-portal.org cvs.edu.in strategy-business.com www.mbaknol.com (Integrity-Asia & ispatguru) publications.anveshanaindia.com smallbusiness.chron.com resources.workable.com whatishumanresource.com resources.workable.com jigsawacademy.com www.personio.com 349 CU IDOL SELF LEARNING MATERIAL (SLM)
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