CU MBA SEM IV International HRM

12.1 INTRODUCTION Training is the process of giving employees with the necessary abilities to perform their jobs effectively, expertly, and qualitatively. Employee training is not continuous, but rather periodic and delivered over a set period of time. In most cases, training will be provided by a specialist or professional in a related field or employment. Training is essential at all levels of employment and for all employees. Training is essential for staying current with rapidly changing technologies, concepts, values, and the environment. In order to improve the quality of work of employees at all levels, training programmes are also required in any organisation. It's also essential when someone gets transferred from one job to another. Taking into account this context, this unit aims at providing insight into the concept, need and methods of training, also areas of evaluation of training, retraining and dimensions of organisational learning. Training is the process of mastering a set of pre-programmed actions. It is the application of knowledge that informs people of norms and processes that will regulate their behaviour. It aids in the constructive transformation of employees' knowledge, skills, and attitudes. Training is an investment in your talent's ability to produce more and higher-quality work. As a result, training is a procedure that aims to develop skills or expand knowledge so that a person is better equipped to execute his current job or is moulded to be suitable for a higher position with more responsibilities. It fills the gap between what an employee already has and what the work requires. Because training requires an organization's time, effort, and money, it is critical that a training programme be carefully designed. The training objectives and need should be clearly defined, and the technique or style of training should be chosen to meet those needs and objectives. After this is done correctly, an organisation should collect feedback on the training programme from trainees in the form of a structured questionnaire to determine whether the money and time spent on training was an investment or a total expenditure for the company. 12.2 DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT A formal definition of training & development is it is any attempt to improve current or future employee performance by increasing an employee’s ability to perform through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge. The need for training & development is determined by the employee’s performance deficiency, computed as follows: Training & Development need = Standard performance – Actual performance. 251 CU IDOL SELF LEARNING MATERIAL (SLM)

Training and development: It is possible to make a distinction among training, education and development. This distinction allows us to gain a better understanding of the terms' meanings. As previously said, training is the process of teaching specific abilities. On the other hand, education is limited to theoretical learning in classrooms. *Training refers to the process of imparting specific skills, whereas development refers to the possibilities for people to learn and improve. *Education is the study of theory in a classroom setting. Training and education are compatible, notwithstanding their differences in nature and orientation. An employee who goes through training, for example, is assumed to have some formal education. In addition, no training programme is complete without an educational component. In fact, the line between training and education is blurring more and more these days. As more employees are expected to make decisions and find alternate solutions to problems on the job, training programmes aim to broaden and develop individuals through education. Employees in well-paid jobs and/or in the service business, for example, may be forced to make independent decisions about their work and customer relationships. As a result, when establishing their training programmes, organizations must include parts of both education and training. Learning activities aimed to help employees progress are referred to as development. The focus of development is not largely on skills. Instead, it delivers general knowledge and attitudes that will be useful to higher-level employees. Personal motivation and ambition are frequently required for development efforts. The majority of development activities, such as those provided by management developmental programming, are optional. In terms of substance and goals, training and development are distinct from one another. Steinmetz (1969) distinguished them. While training is a short-term process in which non- managing individuals learn technical knowledge and skills for a specific purpose, she believes that development is a long-term process in which managerial personnel learn conceptual and theoretical knowledge for general use. “Training is the act of enhancing an employee's knowledge, competence, and attitude for executing a specific task,” says Flippo. During the training phase, employees learn new 252 CU IDOL SELF LEARNING MATERIAL (SLM)

habits, enhanced abilities, and important knowledge that will aid them in increasing their performance. Training allows them to accomplish their current job more efficiently while simultaneously preparing them for a better position.” As a result, training is described as a systematic, coordinated, and planned programme aimed at improving employee performance and bringing about a measurable change in an employee's knowledge, skill, attitude, and social behaviour. Development is more comprehensive in nature and directed toward human requirements rather than job needs, and it is primarily intended for managerial personnel. The major goal of development is to give employees the opportunity to learn new skills and expand their capabilities beyond what is required for their current position. To put it another way, management development encompasses all learning opportunities provided to managerial staff in order to improve their knowledge. Difference # Training: 1. Process designed to bring about a relatively permanent change in employees’ skills, knowledge, attitude or behaviour in order to improve their performance in the currently held job 2. Imparts technical skills 3. Focuses on technical skills specific to the current job 4. Directed towards non-managerial personnel 5. Present-focused and short-run 6. Designed to perform an existing activity better Difference # Development: 1. Process designed to impart learning experiences in order to help managerial employees acquire skills and competencies for future responsibilities Imparts managerial skills 3. Focuses on broad range of skills or managing challenging situations 4. Directed towards managerial personnel 5. Future-focused and long-run 6. Designed to be a continuous process 12.3 EXPATRIATE TRAINING PROGRAMS Expatriate training programs are used when relocating employees, and their families, to an international location. The goal is to make sure employees can get quickly acclimated to living in their new country. While a lot of training courses provide guidance for the employee on how they can get adjusted to working in a new environment, the best courses focus on 253 CU IDOL SELF LEARNING MATERIAL (SLM)

helping families establish housing, find the best education programs for their children, and more. 12.3.1 Expatriate training should focus on Focus the expatriates' training on business issues, certainly, but also provide information that involves the employees' spouses and children. 1. Begin expatriates' training at the cultural level to emphasize communication and eliminate cultural missteps. 2. Continue expatriate training and family education with comprehensive programs that offer support for the length of the assignment. 3. Conclude courses for expatriates with repatriation training. 1. Provide cultural and business communication education for basic knowledge. Basic expatriate training and development should focus on the country of assignment – its culture, language and laws. Provide education for expatriates that properly prepares them to conduct business on your company's behalf without any delays due to misunderstandings with international stakeholders. In addition to business education, provide the employee with resources to help them get acclimated in their personal life. If an expatriate is struggling to adjust to daily life in a foreign country, the assignment could be a failure due to underperformance. By providing support in their host country, companies can help make the transition more comfortable for the expat and boost their performance. 2. Continue training while they are on assignment. Most training for expatriate assignments will introduce an employee to their new station, but it's just as important to offer consistent, always-available support in case the expat has a question for the pros. Develop an expatriate training program with a professional consulting service that educates, trains and supports international business employees throughout their assignments abroad. 3. Identify courses that offer repatriation training and support. One of the most important classes for expatriates is often overlooked. Global business studies by the Society for Human Resources Management have concluded that nearly half of all expats leave their current company for a competitor after an international assignment.  Many expat training consulting companies help expatriates' families establish housing, find children's educational facilities, and start online degree programs for employees and their spouses. They also offer counseling and peer-support linking services, so before you sign on with a provider of expatriate education, ask if the package includes these services. 254 CU IDOL SELF LEARNING MATERIAL (SLM)

 Provide links from your company's website for expatriates in need of support. Whether you link to your chosen expat training and consulting company or provide a discussion forum for expats and their families, show that you value your offsite employees and want their transition, assignment, and homecoming to be effortless and thoroughly supported. By showing support, expats will feel more connected and loyal to the company throughout their assignment and when they return home. 12.3.2 IMPORTANCE OF EXPATRIATE TRAINING: Investing in an expatriate can have expensive upfront costs, but ultimately spending the money on proper training will cost a company far less than a failed assignment. These are some of the benefits of training your expatriates. Less waste Not properly training an expatriate will result in a waste of resources. An expatriate needs to be properly prepared for a change in culture, new languages and new ways of interacting and working with others. Given that many of these international assignments and projects often cost millions, an ill-prepared employee can cause a wide variety of issues for a company. By ensuring the employee is trained properly, you reduce the risk of assignment failure and make the expatriate’s efforts worthwhile by setting them up for success ahead of time. Great performance A properly trained expatriate is also a better-performing one. Learning their duties in another country and/or language can make it difficult for the expatriate to fully understand and perform their duties. It’s important to remember that just because an employee gets the job done well in their home country, doesn’t mean additional preparation is needed before conducting business abroad. By ensuring they have been properly trained in their home country before embarking on their journey, you can also ensure that they are performing to the best of their abilities. Happy employees and families The family matters may not seem to be an immediate issue, proper training can help the expatriates maintain a stable family unit. This journey can be even harder for the family of expats, as they are often underprepared and not provided the same resources as the employee. Families can have a hard time adjusting to their new environments, so also providing them with resources can help both the expatriate and their family successfully adapt. This is imperative, as having a stable, supportive family is one of the main ways expats are able to remain content and focus on their assignments. 255 CU IDOL SELF LEARNING MATERIAL (SLM)

Improved use of language No matter how well the expat may speak a foreign language, practice makes perfect. Terms and phrases that they are not familiar with will likely be a major part of the job. If an expat can’t communicate with others within their job, they won’t be able to effectively lead in their position. By taking the time to train them on using the language of the location they will be living in, you'll better prepare them to not only complete their assignments, but to thrive in another country. Seamless integration No matter how intelligent the expat may be, there is always a learning curve for both them and the company they work with. While the expat has to learn how to acclimate to the new workplace culture and get familiar with new employees, the company must learn the best ways to train and work with the expat to ensure they are set up for success. Expats should receive clear direction as to what is expected of them while on assignment and have proper guidance as they integrate into a new environment. Reasonable cultural expectations One of the greatest benefits of training expats is that it will allow you to manage their expectations beforehand in a controlled environment. According to UrbanBound, studies show that the most failed expat missions occur with American expats who are going to the U.K. Although this seems surprising, it actually makes sense when you consider the vast cultural differences outside of linguistics. Cultural differences are some of the hardest issues for expats to deal with and should be talked about when preparing for assignments. Americans are more likely to believe that there is not much of a cultural difference between America and the U.K. compared to other foreign countries, which is likely one of the reasons American expats fail in the U.K. This is why it's so important to set reasonable expectations for the expat and prepare them for the new culture before they relocate. 12.4 TRAINING PROCESS A training system for International projects may be defined as a rational arrangement of inputs, technology, people, materials, events and process designed to extract behavioral outputs, which produce further social or economical output, increasing organizational effectiveness. Training system receives a person as raw mat, a person having actual or potential deficiency in the job performance and process to modify behavior to match that has been specified in the training objectives. 256 CU IDOL SELF LEARNING MATERIAL (SLM)

This is done under defined rating conditions and constrains. Feedback is from the trained person to refine the system. The process consists of several factors such as trainer, subject matter, training techniques and aids, physical features, time and money including operating conditions and constrains. 12.4.1: International Training Process The Reasons for Employee Training and Development for INTERNATIONAL PROJECTS: Training and development can be initiated for a variety of reasons for an employee as well as the group of employees:  When a performance appraisal indicates performance is not up to the mark then there is a need for training.  Helps people to identify with the goals  Improve relationship between boss and subordinate.  Helps to prepare guidelines for different types of work.  Provides information for future needs in all areas of the organization  Helps individuals in making better decisions effectively increasing the problem- solving abilities.  To eliminates fear in attempting new works. PRE-TRAINING From the name, it is easy to determine that all the activities that are carried out before the training process is known as pre-training. The goal of the PTA is to assess what level the users are at as a group, as well as individually. The trainers can prepare for the training accordingly and identify who needs more attention and help, and which users could potentially be helping fellow users. Steps of Pre- Training : The pre-training stage can therefore be broken down into the following number of steps to be carried out successfully: 257 CU IDOL SELF LEARNING MATERIAL (SLM)

Conducting Needs Assessment: First stage of training instruction design process of any kinds of organization is to conduct the needs assessment. The needs assessment helps to determine whether training is necessary or not. Motivation to Learn: Motivation to learn is the desire of the trainee to learn the content of the training program which is related to knowledge gain, behavior change or skills acquisition in training programs. Managers need to ensure that employee’s motivation to learn is as high as possible through: Self-efficiency and understanding the benefits of learning: Self-efficiency is the employee’s belief that they can successfully learn the content of training program. Managers can increase employee’s self-efficiency level by: 1. Providing as much information as possible about the training program and purpose of training prior to the actual training. 2. Showing employees, the training success of their peers who are now in similar jobs. 3. Providing employees with feedback that learning is under their control and they have the ability and the responsibility to overcome any learning difficulties they experience in the program. Understanding the benefits of training to the employees by communicating to them the potential job-related, personal and career benefits they may receive because of attending the training program. TRAINING As stated earlier, training is any process by which the attitude, skills and abilities of employees to perform specific jobs has increased. In order to sustain economic and effective performance it is important to optimize the contribution of employees to the aims and goals of the necessary to ensure an adequate supply of staffs that are technically and socially competent and capable of career advancement into specialist department of management position. This is therefore, a continual need for the processes of staff training in order to fulfil part of this process for Int. Projects. POST-TRAINING Post- Training Definition: 258 CU IDOL SELF LEARNING MATERIAL (SLM)

In simple sense, post-training refers to the evaluation done after the training program is completed. It measures the benefits and cost of the training program in qualitative as well as quantitative forms, Company uses both forms of this information to evaluate its training program. Examining the outcomes of program helps to evaluate the training effectiveness. Post training program is evaluated in the following ways:  To determine whether the program is meeting the objectives or not.  To determine whether trainees believe that the content and administration of the program were satisfactory.  To determine the financial benefits and costs of the training program.  To compare the costs and benefits to different training programs to choose the best program  To market training programs and services to different clients. 12.5 DEVELOPING AN INTERNATIONAL MINDSET Developing a global mindset and leading with cultural intelligence are two phrases that are used quite often by management teams, and that can be defined as making oneself understood where cultural differences are at play. Training employees and giving them the tools needed to develop the global mindset needed to succeed prior to engaging in international endeavors is by far the most effective way to conduct international business and retain employees. International teams and leaders need to change their frame of reference from a local or national orientation to a truly international perspective. This involves understanding political and cultural influences, trends, practices and international economics. Team leaders, in particular, need to understand and develop competitive strategies, plans and tactics that are external to the confines of domestic marketplace orientation. International managers need not only to recognize the cultural differences but also to manage them effectively. If the team is to succeed, they need to develop processes for coaching, mentoring and assessing performance across a variety of attitudes, beliefs and standards. Here are a few components of a training regimen that highlights the basic needed modifications for international success: Develop Relationship Skills Employees must master these soft skills to be excellent team players, communicators and problem solvers. Learn the Language 259 CU IDOL SELF LEARNING MATERIAL (SLM)

Language Proficiency can play a role in refining relationship skills. One should seek opportunities to learn the language through specialised training programs or coursework that will help to adjust effectively in the host country. Understand the Culture and the Market From a cultural perspective, expatriates should learn what is held sacred and what is viewed negatively. Blending into the market as opposed to creating friction or embarrassment is necessary to help forge global partnerships. Know the Simple Differences It is also necessary to learn the basics of the market that one is working with. From time zones to measuring systems, these basics can prepare the expatriates for a smoother transition. Much of this research can be done on the internet through reliable sites before trip, call or email to show your knowledge of their practices. Be prepared for the Marketplace Understanding the essential elements of the international marketplace is fundamental knowledge required while working in the global domain. Having a high level of knowledge of international trade and monetary systems is part of the repository of knowledge essential to stay competitive. Find a Mentor or Trusted Partner Utilizing the knowledge of someone with experience in the chosen market can be instrumental in helping one adjust and succeed. Have Patience The global market can offer unique obstacles one may not have been expecting, but the opportunity to shine on a larger scale should be valued. Time should be taken to work through challenges to appreciate the role one is in. Example International Training – An Example In 1993, Zimbabwe asked the United Nations (UN) for help in developing an in-service family planning clinical-training package and in conducting group-based courses using these newly developed materials. However, this group-based approach experienced only limited success. 260 CU IDOL SELF LEARNING MATERIAL (SLM)

Many trainees returned to sites where they were not able to practice their newlyacquired skills because of other job responsibilities, low action sponsor/beneficiary caseload for themethod in which they were trained, or inappropriate and inadequate supervision. Results of this evaluation suggested that traditional instructor-led courses might notalways be the most appropriate or effective way to ensure application of new skills onthe job. Given these findings, the evaluation team recommended that the UN assist Zimbabwe in developing a structured OJT package for clinical training. To develop this, the UN team needed to know what types of activities the trainee would complete, both individually and with the trainer in order to practice or apply newly acquired information. Also, how would the trainee and trainer know when specific activities (e.g., trainee to read a specific chapter, trainer to give a demonstration) were to occur? When would the supervisor administer the final knowledge and skill assessment? The answers to these and similar questions, coupled with the results of the discussion about roles and responsibilities, helped to form the basis for the Zimbabwe OJT strategy. The output of the strategy design phase was a clear, concise description of how OJT would work in Zimbabwe. If the UN were to develop an OJT approach for another country, it would have to go through the same strategy design process again. OJT will necessarily differ in each setting—either slightly or a great deal—to meet the specific requirements of the country. 12.6 SUMMARY  Training refers to the process of imparting specific skills.  Development refers to the learning opportunities & designed to help employees grow.  Education is theoretical learning in classroom.  Expatriate training programs are used when relocating employees, and their families, to an international location. The goal is to make sure employees can get quickly acclimated to living in their new country.  Expatriate training should focus on 261 CU IDOL SELF LEARNING MATERIAL (SLM)

o Provide cultural and business communication education for basic knowledge. o Continue training while they are on assignment. o Identify courses that offer repatriation training and support. o Less waste o Great performance o Happy employees and families o Improved use of language o Seamless integration o Reasonable cultural expectations  Training Process - A training system for International projects may be defined as a rational arrangement of inputs, technology, people, materials, events and process designed to extract behavioral outputs, which produce further social or economical output, increasing organizational effectiveness.  Pre- Training - The goal of the PTA is to assess what level the users are at as a group, as well as individually. Steps of Pre- Training: o Conducting Needs Assessment: o Motivation to Learn: o Self-efficiency and understanding the benefits of learning: o Understanding the benefits of training to the employees by communicating to them  TRAINING: Training is any process by which the attitude, skills and abilities of employees to perform specific jobs has increased.  POST-TRAINING: In simple sense, post-training refers to the evaluation done after the training program is completed. It measures the benefits and cost of the training program in qualitative as well as quantitative forms.  Few components of a training regiment that highlights the basic needed modifications for international success. o Develop Relationship Skills o Learn the Language 262 CU IDOL SELF LEARNING MATERIAL (SLM)

o Understand the Culture and the Market o Be prepared for the Marketplace o Find a Mentor or Trusted Partner o Have Patience 12.7 KEYWORDS 1. Global Partner - an organization that works with one in a different part of the world. 2. International trade is the exchange of goods and services between countries. 3. Monetary system is a system by which a government provides money in a country's economy. Modern monetary systems usually consist of the national treasury, the mint, the central banks and commercial banks. 4. Mentor - a wise and trusted counsellor or teacher. 5. Competencies are the job behaviour people need to display in order to do a job effectively 12.8 LEARNING ACTIVITY 1. Why pre- training is important for international assignments? ________________________________________________________________________ ________________________________________________________________________ 2. What is the importance of Post Training Program in International Assignment? ________________________________________________________________________ ________________________________________________________________________ 12.9 UNIT END QUESTIONS A. Descriptive Questions: Short Answers 263 CU IDOL SELF LEARNING MATERIAL (SLM)

1. State the difference between Training and Development. 2. Write the benefits associated with Expatriate Training Program. 3. Explain the concept of Training. 4. Why it is important to include repatriation training and support? 5. What difference is expected from Improved use of Foreign language in International Assignment? Long Answers: 1. Explain the training process. 2. What is the focus of Expatriate Training Programs? 3. Discuss the significance of Developing an International Mindset. 4. Compare the similarity and difference between Training and Expatriate Training. 5. Write a note on important points to be considered in the Expatriate Training Program. B. Multiple Choice Questions: 1. Complete the following: Training & Development need = Standard performance____________________ a. + Actual Performance b. * Actual Performance c. / Actual Performance d. – Actual performance 2. Why training begins at cultural level? a. to emphasize the Communication b. To emphasize the Psychological need c. to fulfill the social need d. To emphasize the peer co-ordination 3. Why it is important to offer repatriation support? 264 a. Ensures Commitment b. Employees feel more connected c. Transition is smooth CU IDOL SELF LEARNING MATERIAL (SLM)

d. All of the above. 4. Which phase of training process emphasized on learning the basics? a. Post Training Phase b. Development Phase c. Pre-Training Phase d. Training Phase 5. ______________is the employee’s belief that they can successfully learn the content of training program. a. Trust b. Self-efficiency c. Confidence d. Good aptitude Answers 1 – d; 2 – a; 3 – d; 4 – c; 5 – b; 12.10 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 265 CU IDOL SELF LEARNING MATERIAL (SLM)

 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  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 266 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 13: INTERNATIONAL TRAINING AND DEVELOPMENT STRUCTURE: 13.0 Learning Activity 13.1 Introduction 13.2 Development 13.3 Training Methods 13.3.1 Cross Cultural Training 13.3.2 Sequential Training 13.3.3 Cross-Cultural Intelligence: 13.4 Management Development Process 13.4.1 Concept 13.4.2 International Development Process: 13.4.3: Methods of Development: 13.5 Emerging Trend in Expatriate Training and Development 13.6 Summary 13.7 Keywords 13.8 Learning Activity 13.9 Unit End Questions 13.10 References 13.0 LEARNING OBJECTIVE After studying this unit, you will be able to:  Describe the significance and concept of Development in Global Organization 267 CU IDOL SELF LEARNING MATERIAL (SLM)

 Comprehend the Management Development Process in Global Organization  Illustrate the different Development Methods  Highlight the Emerging trends in Expatriate Training and Development 13. 1 INTRODUCTION Companies that invest in their employees' development are investing in their own success and growth. They are establishing a workplace that is growing, developing, and adapting to the new and expanding business environment through training their personnel. While there are several training programmes available, there are a few key courses that are required for individuals to succeed at work. Employees' abilities and experience are priceless. It is critical for any firm to develop a knowledge strategy. Knowledgeable employees are a valuable asset who provide the organisation a distinct identity. Leadership is critical to a company's success. A corporation can differentiate itself from the competition by introducing new employees to the organisation and providing them with suitable training. Every effective training and development programme considers both present and future leadership requirements. This promotes manager growth, and it is a company's leadership style that propels it forward and distinguishes it as distinct and profitable. Create a learning culture in your company. It's critical to let employees know that the organisation expects them to keep current in their professions or sectors of work. Provide the materials they need to improve their talents and achieve their aim. Inform staff on the unique training requirements and expected outcomes. 13.2 DEVELOPMENT The training for the top-level employees is considered as development, also known as management or executive development. It is an on-going systematic procedure in which managerial staff learns to enhance their conceptual, theoretical knowledge. It helps the individual to bring efficiency and effectiveness in their work performances. Development is not only limited to a particular task, but it aims to improve their personality and attitude for their all-round growth which will help them to face future challenges. It changes the mindset of the employees and makes them more challenging or competing. As the technology needs updating, the manpower of the organisation also needs to be updated, so the development is a must. Development is an educational process which is unending, as education has no visible end. It involves training a person for higher 268 CU IDOL SELF LEARNING MATERIAL (SLM)

assignments. It digs out the talents of the managerial staff and helps in applying the new knowledge, which is a requirement of the organisation. Coaching, mentoring, counselling, job-rotation, role playing, case study, conference training, special projects are some of the methods of development. The performance of an organisation is based on the quality of its employees, and so the greater the quality of employees, the greater will be their performance. The primary purpose of development is that the second list of managers or executives is prepared for future replacement. Comparison Between Training and Development: The major differences between training and development are as under: Training is a learning process for new employees in which they get to know about the key skills required for the job. Development is the training process for the existing employees for their all-round development. Training is a short-term process i.e. 3 to 6 months, but development is a continuous process, and so it is for the long term. Training focuses on developing skill and knowledge for the current job. Unlike, the development which focuses on the building knowledge, understanding and competencies for overcoming with future challenges. Training has a limited scope; it is specific job oriented. On the other hand, development is career oriented and hence its scope is comparatively wider than training. In training, the trainees get a trainer who instructs them at the time of training. In contrast to development, in which the manager self-directs himself for the future assignments. Many individuals collectively attend the training program. Development is a self-assessment procedure, and hence, one person himself is responsible for one’s development. 13.3 TRAINING METHODS 13.3.1 CROSS CULTURAL TRAINING METHODS: 269 CU IDOL SELF LEARNING MATERIAL (SLM)

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). 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 270 CU IDOL SELF LEARNING MATERIAL (SLM)

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 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 271 CU IDOL SELF LEARNING MATERIAL (SLM)

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 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 272 CU IDOL SELF LEARNING MATERIAL (SLM)

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 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 273 CU IDOL SELF LEARNING MATERIAL (SLM)

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 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 274 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 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 275 CU IDOL SELF LEARNING MATERIAL (SLM)

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: 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 276 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, 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. 277 CU IDOL SELF LEARNING MATERIAL (SLM)

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 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. 278 CU IDOL SELF LEARNING MATERIAL (SLM)

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- 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. 279 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 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 280 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 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. 281 CU IDOL SELF LEARNING MATERIAL (SLM)

 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. 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. 282 CU IDOL SELF LEARNING MATERIAL (SLM)

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: 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 283 CU IDOL SELF LEARNING MATERIAL (SLM)

short term assignees all require cross-cultural training and awareness so as to reduce adjustment problems. 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). Personal Security 284 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 285 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. 286 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. 13.8 LEARNING ACTIVITY 1. Justify whether Interaction Training helps the expatriate’s adjustment process. _________________________________________________________________________ __________________________________________________________________________ 2. Discuss the benefits of Self- Initiated Assignments 287 CU IDOL SELF LEARNING MATERIAL (SLM)

_________________________________________________________________________ __________________________________________________________________________ 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: 1. What is Covered in Didactic Training? a. Requirements for the job b. Includes Look See Trip c. Practice Interactions d. Simulation Games 288 CU IDOL SELF LEARNING MATERIAL (SLM)

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 289 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: 290  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 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 291 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 14: INTERNATIONAL 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 Suggested Readings 14.0 LEARNING OBJECTIVE After studying this unit, you will be able to:  Explain the importance of Diversity Management in the International Business  Compare the Merits and Demerits of Workplace Diversity  Describe the Diversity Audit Tool  Outline the Talent Management and International HR Practices 292 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 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. 293 CU IDOL SELF LEARNING MATERIAL (SLM)

 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. 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 294 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 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 295 CU IDOL SELF LEARNING MATERIAL (SLM)

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.  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 296 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 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. 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 297 CU IDOL SELF LEARNING MATERIAL (SLM)

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 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 298 CU IDOL SELF LEARNING MATERIAL (SLM)

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.  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. 299 CU IDOL SELF LEARNING MATERIAL (SLM)

 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 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. 300 CU IDOL SELF LEARNING MATERIAL (SLM)