Page 137 - DMGT548_GLOBAL_HRM

Global HRM

Notes

Notes MNC Training
Many MNC training programmes in the U.S. are shifting to the more intense competitive,
test-oriented, and result-oriented educational system used so well by Japan. Japanese
firms employ the most effective on-the-job training and developmental programmes in
the modern business world. The Germans are following the Japanese lead and are
developing outstanding on-the-job training programmes. MNC training programmes
include public education, relative levels of secondary schooling, and on-the-job training,
computer literacy, and worker motivation.

Example: The German power Tool Company has used apprentice training programmes
to triple the productivity of its Virginia plant. A similar apprenticeship training programmes
are paying big dividends for Potter and Brumfield, Inc., another German-owned plant in the
United States.

Task You are HR manager of the company. Analyse the training program you will
design for the employees of your company who will be leaving for USA in next 2 months
to handle a business assignment.

7.2.11 International Training of HCNs

HCNs can be transferred into the parent country, into either its headquarters or home-subsidiary
operations. There are various motives for HCN staff transfers:
1. It facilities specific firm-based training.

Example:
(a) The Pepsi-Cola International Management Institute is an umbrella system for the delivery
of training programmes such as sales force management or production techniques for the
manufacturing or Pepsi brands.
(b) Fiat, the Italian automobile manufacturer, uses staff transfers as part of its training
programme, with HCN recruits spending time at corporate headquarters.
2. While technical and managerial training may be the primary goal, there is often a secondary,
yet equally important, objective of building a sense of corporate identity.

Example: The Swedish telecommunications company, L. M. Ericsson has two levels of
formal management programmes catering the top managers and middle managers. As part of
its approach, the company established the Ericsson Management Institute. These types of corporate
training centres serve as a useful venue for HCNs from various countries to meet and develop
personal networks that facilitate informal communication and control.

3. Particular skills may be required in the subsidiary and the most cost effective way is to
bring certain HCN staff into the parent operations.

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