International and Comparative HRM

Lecture 8
Training and Management Development in the
Multinational Company

Alhajie Saidy Khan (alhajie.saidykhan@anglia.ac.uk)

Lord Ashcroft International Business School
 Learning Outline

Definitions of training and development

Changes in context and scope of international Training and Development
Explain the underpinning cultural and institutional factors that impact a
comparative understanding of training and development

Evaluate how differences in public policy and institutional arrangements across

different country impact organisational learning

Broad training and development initiatives used by MNCs related goals

Examine the reasons behind the heightening levels of interest in management
development and differences this may have in different contexts
 Defining Training and Development

Training: The planned and systematic modification of behaviour

through learning events, programmes and instruction which enable
individuals to achieve the levels of knowledge, skill and
competence to carry out their work effectively.

Development: The growth or realisation of a persons ability and

potential through the provision of learning and educational
experiences.

Learning: A relatively permanent change in behaviour that occurs

as a result of practice or experience.
 International T & D: levels of analysis & application

Global orientation: Anglo-America outlook on management

development and HR policy on international scale (MNC)

Comparative orientation: T and D as process and analyse on

basis of national differences (institutional & cultural)

National level: an outlook of T and D as integral part of national

social and economic development strategy and therefore focuses on
institutional development including public/private T and D
partnership schemes

Harzing and Pinnington, 2011

 Changing context & scope of International T & D

The neo-colonial model

HRD practices and innovations focused on home operations
international managerial opportunities limited as reward to mid to late career men
T and D limited pre-departure awareness programmes
High levels of expatriate failure and attrition

In context of globalisation
Integrated production networks require new types of international manager
Increase demand for international managerial talent
Contradiction of centralised HRM strategy and policy
Variety of international managerial roles demands news international skills sets
and approaches to development
Edwards and Rees, 2011
 National and organisational interface in
relation to training & development

Nikandrou et al. (2008) Training and firm performance in Europe: the impact of national and
organisational characteristics in Brewster et al., 2011
 Varieties of Capitalism and the role of the State

Almost all countries provide for a period of compulsory education

until young people reach a certain age (16 years in the UK).

The next stage is VET (vocational education and training) and

provision varies across different states depending on degree of state
involvement and protection of stakeholder interests.

Co-ordinated, insider model market economies (CMEs) have more

stakeholder oriented environments and tend to have higher levels of
coverage of VET programmes and a longer term view.

Liberal, outsider model market economies (LMEs) stakeholder

interests are less protected, therefore more power accorded to
management and shorter term focus in likely.

Brewster et al, 2011; Edward and Rees, 2006, 2011

 Model National Vacation and Educational
Training systems

Differentiation is based on the relative the extent and nature

of state involvement in vocational education and training:

Voluntarist model: free market, internal labour focus and generally

management driven approach (e.g.: UK and USA)

Dual model of VET: social partnership approach, with role for

employers, trade unions and the state and thus dual labour market
approach to VET (Germany and, to a lesser extent, France)

Developmentalist VET as instrument of national economic and

social development (Most emerging and developing countries)
Rubery Grimshaw, (2003)
 Types of Vocational Education and Training

Dual apprenticeship Germany, Austria, Switzerland.

Vocational colleges Norway, Sweden and Finland.
Company based Japan, Italy and France.
Mixed Belgium, Netherlands and Denmark.
Variable/weak provision UK, USA, Canada, Australia and New
Zealand.

Brewster et al. 2011

 Drivers and Skills for International managers

Cultural: Understanding of and sensitivity to etiquette, social norms, religions

and ethnical characteristics and language

Relationship: Ability to build and maintain a network of contacts; ability to

negotiate, Learn and Communicate without arrogance

Leadership: Ability to motivate, inspire trust, teach and coach, to lead teams,
play role model

Political: Ability to understand the local political context and subtleties;

communicate with opinion leaders and key decision-makers and, to integrate
local priorities into Business strategies and practices

Professional: Knowledge and expertise in product and services, performance by

demonstration
Competencies for international Management success
Open-minded and flexible
Cultural awareness & sensitivity
Able to deal with complexity
Resilience, optimistic and
enthusiastic
Honesty and integrity
Stability
Technical/professional skills
Ability to live and work in variety
social, political and cultural context
Respect for others culture and point of
view, non-judgemental
Comfortable with ambiguity, and ability
to wade through many variables to
address problems
Ability to respond to challenge and
adversity, self reliant & creative
Authentic, consistent & trustworthy
Ability to manage stress individually and
or having stable social support system,
(usually family)
Credible technical and managerial
 Importance of developing an international
management Teams

The aim in a global business is to get the best ideas from

everywhere. Each team puts up its best ideas and processes
constantly. That raises the bar. Our culture is designed
around making a hero out of those who translate ideas from
one place to another, who help somebody else. They get an
award, they get praised and promoted.
Jack Welch, CEO of GEC
 Global management Develop

Ensure equal opportunities: geocentric approach to leadership

development programmes.
Long-term international assignments as learning strategy.
Short-term foreign travel for potential managers to expose them to
different cultures, economy, political system, market, and other social
and institutional details.
Establish multinational project teams including individuals with diverse
backgrounds and perspectives to work closely together.
Design structured Cross-cultural training and experiential action
learning programmes
 International T & D: building an International
management team
This model is based on a strategic outlook of international training and
development as integrated with international recruitment and selection and an
integral part of an effective performance management system.

Recruitment International
and Selection Training Development Team

Pre-departure International
Training Assignments

Dapted from Suutari and Brewster (2003) International Journal of HRM, 13.1 (pp. 55-75
 Theorising MNE international T & D approaches

According to Torrington et al, MNCs international training

and developing orientation is reflected by the rigor - to
which they prepare their employees for international
assignments. Whether It is:

Low rigor training

Median rigor
High Rigor
Torrington et al., 2007, 2010
 Low rigor Training

Techniques: Lectures,
videotapes, reading
Short training period background material.
Lectures
Videos and local culture Objectives: Provide
Briefing on company Low background information on
operations Training host country business and
Rigor national cultures, basic
information on company
operations.
 Median level rigor Training

Techniques:
Experiential learning
Period, nature and exercises, role playing,
content of training
Mid- simulations, case
falls between low
and high rigor level studies, survival
Training language training.
training approaches
Rigor
Objectives: General and
specific knowledge of
host country culture,
reduce ethnocentrism.
 High rigor training
Longer training period
Experiential learning
Extension language training
Some interactions with
host country national
Regular interactive
briefings/debriefings involving
international team of managers
Techniques: Field trips to
host country, meetings
High with managers experienced
Training in host country, meetings
Rigor with host country
nationals, intensive
language training.
Objectives: Develop
comfort with host country
national culture, business
culture, and social
institutions.
 Caligiuri et als theory of training initiatives
MNE managers

The three broad groups of training initiatives used by MNCs

(individually or in conjunction) are:

Cross-cultural training

Diversity training

Language training
Caligiuri et al, 2001 in Scullion and Linehan, 2005
 Cross-cultural training

Helping international managers adjust to living and working across

cultures by:

learning appropriate behaviour and ways of performing tasks in

another country

developing coping strategies to deal with and navigate unexpected

events and situations in new cultures

forming realistic expectations about living and working in other

countries
 Diversity training

Has general applicability and can be offered to all employees (not

just managers) to help them to:

More effectively work with a diverse workforce (including

different cultural and religious backgrounds)

Increase awareness of both individual, but especially group-base

differences within the workforce

Decrease negative stereotyping

 Language training

Useful complement for the other initiatives and particularly

helpful to global assignees

Ease of communication among colleagues in different countries

Training of key employees in host countries in the common
corporate language can help improve both horizontal (between
subsidiaries) & vertical (subsidiary to headquarter)
communication
 Management Developmental initiatives for MNCs

Initiative Objectives
Pre-departure cultural To live and work comfortably in host country
awareness
In-country cultural training Increase cultural adjustment capability

Diversity training Improve awareness and appreciation of multiple

cultural perspectives
Language training Fluency in other language

Formal education To enhance international business insight and

knowledge
Cross-border global team Learning new skills from debriefings multicultural
perspective
International assignment rotations Learn & develop greater appreciation for diversity &
international leader competence

Chapter 4 in Scullion and Linehan, 2005

 Summary: key points

There are differences in the national systems of (VET) and these impact the type and extent of in
work training and development by organisations.

The legislative and institutions frameworks as they relative to theories of varieties of capitalism
(VoC) is the critical distinguishing factor

Levels of attainment in compulsory education differ between national contexts and these
differences are a key factor in MNEs location decisions (ref Dunningss locational advantage
theory).

Regardless of context most MNEs have a written policy for training and development, and apart
from pay and benefits, this is more common than any other HRM policy.

Nevertheless and despite evidence general upward trend in training activity among MNEs, there
are no signs of convergence in terms of training opportunity and/or training investment.

Although perceived importance of Management development has increased, there is no universal

best approach. Brewster et al, 2011