Page 123 - DMGT548_GLOBAL_HRM

Global HRM

Notes technology (also known as technical colleges or polytechnics). In addition to the basic training
required for a trade, occupation or profession, observers of the labour-market recognise the
need to continue training beyond initial qualifications: to maintain, upgrade and update skills
throughout working life. People within many professions and occupations may refer to this sort
of training as professional development.

7.1 Role of Expatriate Training

Today, more and more companies are spending substantial amounts of money on training and
development of their employees to attain long-term organisational goals. Training programmes
are designed and delivered after extensive research and preparation so as to deliver acceptable
returns on investment, and to secure sustainable competitive advantage. The management’s
philosophy of a company, whether ethnocentric, polycentric or regiocentric influences the type
of training.

Example:

1. Ethnocentric companies will provide all training at the headquarters and these will be
designed and delivered by home national’s polycentric.
2. Polycentric companies will rely on local managers to assume responsibilities for seeing
that the training function is carried out wherever appropriate.
3. Geocentric companies organise training courses in different parts of the world, where a
particular function is being best carried out.

Training has specific goals of improving one’s capability, capacity and performance. Training
aims to improve current work skills and behaviour, whereas development aims to increase
abilities in relation to some future position or job – usually managerial. Training is the process
of altering employee behaviour, attitudes and knowledge in a way that increases the probability
of individual and organisational goal attainment. It aims to improve in relation to some future
position or job, usually managerial. When expatriates are unfamiliar with the customs, cultures
and work habits of the local people, they often make critical mistakes which can be avoided by
providing them with proper training.

Example: Cultural Ignorance is Bad Business
An American company eager to do business in Saudi Arabia sent over a sales manager to ‘get
something going’. The salesman began calling contacts soon after his arrival. After many
disappointing appointments, the salesman ran into an old friend, who gave him an introduction
to some basic rules of Saudi etiquette and how to do business with the Arabs. The salesman
learned that he had repeatedly insulted his contacts by his impatience, refusal of coffee, ‘business
first’ attitude and aggressive selling. Even incidental acts such as handling people or papers with
his left hand and exposing the side of his shoe while sitting on the floor were improper Saudi
customs.
The cost of expatriate failure is very high. Therefore, MNCs take great pains to select the right
persons and provide them with appropriate training before their departure as well as on arrival
in a particular country. This cross-cultural and job-related training is also necessary because
multinationals have to deal with clients and suppliers from different countries and conduct
negotiations to set up joint ventures and strategies alliances and manage subsidiaries abroad.
Therefore, they invest heavily on the training of all employees, particularly on expatriates.
Proper training can enhance group decision-making skills, team work and leadership
effectiveness. Training and development is a subset of Organisational Development (OD), culture

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