UNIT - 4

DEVELOPING GLOBAL MINDSET

 1). Developing Global Mindset: Global Leadership
2). Cross cultural context and international assignees
3). Current scenario in international training and development
TOPICS 4). Training & development of international staff
TO BE 5). Types of expatriate training

COVERED 6). Sensitivity training

7). Career Development
8). Repatriate training
9). Developing international staff and multinational teams
10). Knowledge transfer in multinational companies.
 • The single critical success factor in globalizing business lies
with an organization‘s pool of highly competent global leaders

 - who have the global knowledge of production and

service capabilities, of consumer demands for products
and services around the world, and

 who can influence others despite diverse cultural, political

GLOBAL and institutional backgrounds that make them
LEADERSHIP - think,
- decide,
- analyze,
- act and communicate differently than the leader.

• In other words, global leaders with Global Mindsets are the key
to sustainable competitive advantage in the global economy.
 Four recommendations for developing global
leaders:
1) Organizations need strategic clarity about what
kinds of skills a global leader needs.
2) Prospective global leaders need relevant
DEVELOPING developmental opportunities.
GLOBAL 3) Prospective global leaders need appropriate
LEADERS levels of feedback, resources and support to
help them learn from the experiences they have.
4) People need international perspectives and
exposure starting early in their careers to
maximize the quality of the globally competent
expert pipeline.
 • The development of expert global leaders is complex.

• Their capabilities are developed over time and build on

threshold competencies that include a requisite level of
inquisitiveness and openness — natural abilities that
are supported by cross-cultural knowledge — and
build on a base of business or technical skills.
GLOBAL
MINDSET • International experience contributes to their
development as do international management
development programs and cross-cultural training
programs.

• But these interventions alone do not make someone an

expert global leader. It takes a Global Mindset.
 • The human resource refers to the accumulated
stock of knowledge, skills, and abilities that the
CROSS individuals possess, which the firm has built over
CULTURAL time into an identifiable expertise.
CONTEXT
AND • Building a team with international orientation,
committed and competent people who will support
INTERNATIONAL the organization‘s strategic business and
ASSIGNEES enhancing core competencies of organization
needs training and development
 • With the world-wide expansion of companies and
changing technologies, Indian Organizations have
realized the importance of corporate training.
CURRENT Training is considered as more of retention tool
SCENARIO than a cost.
IN
INTERNATIONAL • Today, human resource in the training system in
TRAINING Indian Industry has been changed to create a
smarter workforce and yield the best results.
AND
DEVELOPMENT
• With increase in competition, every company
wants to optimize the utilization of its resources to
yield the maximum possible results.
 • Training is required in every field be it Sales,
CURRENT Marketing, Human Resource, Relationship
building, Logistics, Production, Engineering, etc.
SCENARIO
IN
• It is now a business effective tool and is linked
INTERNATIONAL with the business outcome.
TRAINING
AND • With increase in awareness of corporate training in
DEVELOPMENT… Indian Industry, a gradual shift from general to
specific approach has been realized.
 • On the other hand, in many organizations training
CURRENT is regarded as non-essential or a need-based
SCENARIO activity.
IN • Some organizations start a training department in
order to look modern.
INTERNATIONAL
• In fact, some organizations are headed by
TRAINING unwanted employees rather than employees of
AND outstanding merit.
DEVELOPMENT… • While some organizations do not have a separate
budget to hire highly qualified trainers for training
and development.
 • MNCs spend substantial amount of money on training and
development of employees Cost of expatriate failure is very high
which organizations cannot bear.

TRAINING • Selecting a right person and providing them with appropriate

& training before their departure as well as on arrival in a particular
country is very important
DEVELOPMENT
OF • Should enable expatriates to determine in advance the appropriate
cultural behaviors and suitable ways of performing necessary tasks
INTERNATIONAL in the host country

STAFF • Should help expatriates cope with unforeseen events in the new
culture and reduce conflict due to unexpected situations and actions

• Should create realistic expectations for expatriates with respect to

living and working in the host country
 • Language training

• Practical assistance
TYPES OF
EXPATRIATE • Training for the training role
TRAINING
• TCN and HCN expatriate training

• Non-traditional assignments and training

 • Designed to adapt and appreciate host country culture so that
expatriates can behave accordingly or to develop coping
patterns

CULTURAL • Components of program may vary according to country of

AWARENESS assignment, duration, purpose of transfer and provider of
programs
PROGRAMS
• If expected interaction is low, degree of dissimilarities between
cultures is low, training should focus on task and job related
issues and less cultural issues
 LOW RIGOR TRAINING:

LOW RIGOR • Short time period

• Lectures and videos on local cultures
TRAINING AND • Briefings on company operations
HIGH RIGOR
TRAINING HIGH RIGOR TRAINING:

• Last over a month

• Experiential learning
• Extensive language training Includes interactions with
host country nationals
 • Reviewing available information about the host
company: books, magazines, video tapes.

• Conversations with host country natives.

TRAINING
• Sensitivity training to become familiar with the
METHODS customs and overcome prejudices.

• Temporary assignments to encourage shared

learning.
 1. Preliminary visits
2. A well planned trip for the candidate and his spouse provides a
preview and allows them to assess their suitability and interest in
TRAINING assignment
3. Introduce expatriate to the business context
RIGOR: 4. Making housing and schooling decisions
TECHNIQUES 5. Exposure to community
AND 6. Language training

OBJECTIVES 7. The role of English as the language of world business

8. Host country-language skills and adjustment
9. Knowledge of the corporate language
 • Need of expatriates may be due to lack of trained staff in host
country
• Need to train HCNs as their replacement
• Ability to transfer knowledge and skills in a culturally sensitive
TRAINING manner should be very important component of pre-departure
FOR training
• TCN and HCN expatriate training
TRAINING • TCNs transferred to another country subsidiary
ROLE • HCNs transferred to parent country
• Provision of training for non-traditional expatriate assignments
• Nontraditional assignments like commuting or international
business travel
 • Limited data on how effective such training is and what
components are considered most essential

• Use of mixture of methods makes evaluation of which method

is
most effective difficult to isolate
HCN TRAINING :
PRE-DEPARTURE • Large diversity of cultures involved
TRAINING
• What works for one may not work for another

• Complex jobs in multiple cultural contexts

 • Sensitivity training involves such groupings as - T groups
(T for training), encounter groups, laboratory training groups,
and human awareness groups are all names usually associated
with what is known as sensitivity training.

• Sensitivity training is about making people understand about

SENSITIVITY themselves and others reasonably, which is done by developing
TRAINING in them social sensitivity and behavioral flexibility.

- Social sensitivity in one word is empathy. It is ability

of an individual to sense what others feel and think
from their own point of view.

- Behavioral flexibility is ability to behave suitably in

light of understanding.
 • In one-way, Sensitivity training is the process of developing
emotional intelligence, which means "the mental ability an
individual possesses enabling him or her to be sensitive and
understanding to the emotions of others as well as being able to
SENSITIVITY manage their own emotions and impulses".

TRAINING…. • [Emotional intelligence, according to Merriam Webster,

"describes the ability, capacity, skill or, in the case of the trait,
to identify, assess, and manage the emotions of one's self, of
others, and of groups."]
 • Emotional intelligence enable employees to act according to
the situation in the organization faced by him.

• It develops the ability to understand others feeling and their

SENSITIVITY mental status and interact accordingly.

TRAINING…. • Conflicts and misunderstandings are mostly raised because of

lack of emotional intelligence possessed by the person which
leads to breakup in perception and relationship they main since
long time in organization and effects the productivity of the
organization.
 • Sensitivity Training Program requires three steps:
PROCEDURE
OF 1. Unfreezing the old values

SENSITIVITY 2. Development of new values

TRAINING
3. Refreezing the new ones
 • It requires that the trainees become aware of the inadequacy of
the old values. This can be done when the trainee faces
dilemma in which his old values is not able to provide proper
guidance. The first step consists of a small procedure:
1.
⁃ An unstructured group of 10-15 people is formed.
UNFREEZING ⁃ Unstructured group without any objective looks to the
trainer for its guidance
THE OLD ⁃ But the trainer refuses to provide guidance and assume
VALUES leadership
⁃ Soon, the trainees are motivated to resolve the uncertainty
⁃ Then, they try to form some hierarchy. Some try assume
leadership role which may not be liked by other trainees
⁃ Then, they started realizing that what they desire to do and
realize the alternative ways of dealing with the situation
 • With the trainer's support, trainees begin to examine their
interpersonal behavior and giving each other feedback.

2. • The reasoning of the feedbacks are discussed which motivates

DEVELOPMENT trainees to experiment with range of new behaviors and values.
OF NEW VALUES
• This process constitutes the second step in the change process
of the development of these values.
 3.
This step depends upon how much opportunity the trainees get to
REFREEZING practice their new behaviors and values at their workplace.
THE NEW ONES
 • Expatriates are trainers
CAREER
DEVELOPMENT: • Expatriates show how systems and procedures work, ensure
adoption, and monitor performance of HCNs
INTERNATIONA
L ASSIGNMENTS • International assignments a form of job rotation – management
development
AS A TRAINING
AND • Components of effective pre-departure training
DEVELOPMENT
TOOL • Cultural awareness programs

• Preliminary visits
 1. Social and business etiquette
2. History and folklore
3. Current affairs, including relations between the host country
PREPARING and the parent

FOR AN 4. Cultural values and priorities

5. Geography, especially its major cities
INTERNATIONAL 6. Sources of pride and great achievements of the culture
ASSIGNMENT 7. Religion and the role of religion in daily life
8. Political structure and current players
9. Practical matters such as currency, transportation, time zones,
hours of business
10. The language
 • Coming back is a challenge.

• The returning family will obtain the tools and methods to

readjust effectively into the Finnish everyday life and business
life.
REPATRIATE
• Cultural and practical changes in the society.
TRAINING
• Major adjustments in business life Cultural readjustment:
changes in oneself and making the best of cultural
readjustment Guidance with procedures with authorities etc.
 • Training is designed for the relocating assignee
and family.
• The training helps individuals and their families
adjust to the new environment and prepare for
successful interaction both in daily life and
REPATRIATE business situations in the destination country.
TRAINING • The training consists of the following parts:
cultural differences/culture shock, business life,
daily life/city specifics.
• The training occurs over 8-12 hours.
• Separate, customized children‘s and young adult
program (4 hours) is also available.
 DEVELOPING • Management development-Gain of international experience, help in
career progression, develop for future international business
INTERNATIONAL expansion Organizational development - Accumulation of stock of
knowledge, skills and abilities upon which organization can grow
STAFF AND in future Individual development Job rotation Management
development tool
MULTINATIONAL
TEAMS • New range of jobs, tasks and challenges Financial gain and career
advancement How international teams benefit the multinational
 • Fosters innovation, organizational learning and transfer of
DEVELOPING knowledge Assists breaking down of functional and national
boundaries Encourages diverse inputs
INTERNATIONAL
STAFF AND • Assists in developing broader perspectives Develops shared values
International Cadre: Another Choice
MULTINATIONAL
TEAMS … • Separate group of expatriate managers who specialize in a career
of international assignments Have permanent international
assignments Move from international assignments to international
assignments
 • The ultimate goal of a MNC is to increase its turnover and
profits worldwide.

• The need of coordination among all the worldwide spread

KNOWLEDGE subsidiaries is thus necessary.
TRANSFER IN
MULTINATIONAL • Furthermore, in such a global and competitive market, one of
the most important things in order to earn market shares is to
COMPANIES stay constantly innovated.

• On one hand, subsidiaries are considered to be on the frontline

of the market. That means that they are clearly exposed to the
flexibility of the market such as market changes, trends and
opportunities.
 • On the other hand, it is strictly the task of the headquarters to
grant any extent of support to encourage autonomy and
innovation. A central issue carried out by several researches is
concerning the spread of the knowledge gained by subsidiaries
KNOWLEDGE through their innovation and practices.

TRANSFER IN • Knowledge transfer is not solely perceived as a one-way

MULTINATIONAL movement of methods from HQ to foreign subsidiaries. In fact,
―reverse knowledge transfer from subsidiary to HQ is
COMPANIES increasingly becoming an object of research.

• It is believed that the knowledge achieved by subsidiaries

through best practices and innovation is fundamental for the
improvement of the overall performance of the MNC.
THANK Dr S JOHN MANOHAR.,
YOU KS School of Engineering and Management