Cross-cultural Training for Expatriate Managers Essay Example for Free

Cross-cultural dressing for discharge Managers EssayThe emergence theories of charismatic and transformational leaders hold back formed our understanding of these topics in the past decade. sequence the terms charisma and transformational leading have a great deal been interchanged, Bass (1990) clarifies that charisma forms a part of transformational leadership.Within Basss approach, transformational leadership includes charisma (providing a vision and a sense of accusation and raising followers self-expectations), intellectual stimulations (assisting employees emphasize acute solutions and challenge old assumptions), and individualized consideration (developing employees and coaching). Furthermore, Bass (1990) emphasized that transformational leadership overly goes beyond trans personationional leadership (or contingent reward such as the exchange of rewards for efforts) in elevating leaders and helping followers reach higher levels of organizational functioning. Henc e with an step-upd level of interest in conceptual framework of transformational leadership, several(prenominal) studies have documented the benefits and importance of changing leadership styles. Koh et al. (1995) study show that there is a epochal correlation in the midst of transformational leadership facets and organizational functioning. In fact, the study shows that subordinates satisfaction with their supervisors is associated with the extent which supervisors manifest transformational leadership.In addition, several researches suggest the importance of transformational leadership as a precursor to some aspects of financial execution of instrument (Howell and Frost 1989, Howell and Avolio 1993). Ultimately, the signifi atomic number 50ce of transformational leadership in an organization cannot be adequately understood without comprehending how changing leadership styles is both possible and likely to result in changes in subordinates perceptions, attitudes, or instruction execution.Barling et al.s (1996) research suggests that an in force(p) nurture program on developing transformational leadership at diametric organizational levels can increase an employees morale, commitment, and overall capital punishment. Barling et al.s (1996) study also extends prior researches (Kirkpatrick and Locke 1996, Howell and Frost 1989) suggesting that there is strong supreme correlation between transformational leadership, commitment, and financial performance.In line with this, the case of United Motors Company (UMC) suggests developing the political party socialisation to better respond to the trade needs. As such, one of the goals of H. Arthur Grommet was to develop and to hone leadership skills at different managerial levels. Because Mr. Grommet had inherited the virtually conservative and bureaucratic management in the industry, he stand upd a management traineeship program wherein management trainees were recruited from top railway line schools in th e US, and plectron from internal management to participate in the teaching program was also done.The program, LeaderMex was then develop with the mission to identify, train, and monitor UMCs managers who have strong performance records and the desire to work for their new subsidiary in Mexico. The high-profile program indicates that participants will assume positions with high responsibility and is a fast-track program in identifying potential leaders within the company. Individuals who qualify for the program are expatriated to Mexico and bear with rotations within at least two incarnate divisions from three to five years. After which, the employees are promoted to higher positions after two years upon exit to the US. date the LeaderMex program is aimed at identifying internal leaders within the company, kind-hearted Resources has noted numerous problems that have face by expatriate managers. At the start, there was no human relations program in place. Managers undergo a th ree day seminar on labor law and complete a language naturally before going to Mexico. However, as human relations realize that language alone is not a barrier, the organization recognized the need for a specific training on cultural sensation and the effectuate of cultural differences on employee attitudes and performance.In response to the problems, a cultural awareness training program has been developed for managers prior to their relocation and assignment to Mexico. A series of trainings were developed for managers to understand how to work in different cultural environment and in how to handle human relations problems that may arise in the phone line of operations in Mexico.Top management has recommended the following goals for the training program design (1) introducing managers to the cultural differences between the United States and Mexico, (2) pre directing some typical problems American managers face in that company as well as solutions to the problems, and (3) reduc ing the amount of season needed to adapt to managing in Mexico. Top management has assigned the Human Resources staff members, and possibly using the services of external consultant, in conducting the training program.The value of the cultural awareness program in this case cannot be overemphasized. UMCs move to set-up a subsidiary in Mexico however presents the increased internationalization and intersomebodyal cross-cultural contact within the company. In an effort to regain battle in the world-wide automotive industry, the need for UMC to develop the requisite skills in its employees to work within various cultures has become an important component in its strategy.Moreover, as UMC has created the LeaderMex program to expatriate leaders in ordination to build and integrate the technology and culture of the new subsidiary, UMC must provide support functions for expatriate leaders in the new subsidiary. As such, a number of studies advocate cross-cultural training as a means of facilitating the expatriates ability to adjust to the new environment (Brislin 1981 Landis and Brislin 1983 Mendenhall and Oddou 1986 Tung, 1987).The need for the support anatomical structures in training for the expatriate program can be seen in the personify of an expatriate assignment. According to the discipline Foreign Trade Council (NFTC) survey in 2002, a three year expatriate assignment for an employee with a $75,000 to $100,000 base salary costs an employer $1 million total.Moreover, the cost of a poor staffing decision could hunt from $200,000 to $1.2 million (the figure only includes identifiable costs associated with compensation, training, development, etc.), and the rate of expatriate failures1 ranges from 10% to 45%. The cost of an expatriate assignment, therefore, demonstrates how measurement and evaluation of the assignments are crucial for companies. Ultimately, the lack of necessary preparation, HR assistance and suppress support for repatriation is the culpr it for expatriates failure.In fact, the lack of understanding on the different dimensions of national culture in Mexico can lead to expatriates failures. Hostede (1993) identified the five dimensions of national culture as follows (1) individualism-collectivism2, (2) uncertainty avoidance3, (3) masculinity-feminity4, (4) power distance5, and (5) time druthers6. Awareness of these dimensions will help develop cross-cultural preparation programs that include meaningful culture regarding the culture the expatriates will find themselves working in.In addition, Minehan (2004) suggests that US expatriates in Mexico should understand cultural dimensions in cardinal aspects. First, American assignees need a real understanding of the relationship between the two nations, Mexico and the U.S. In most cases Mexican colleagues will have a lot more knowledge of the U.S. than vice versa. Second, Americans are comprehend to be arrogant and inflexible.For Mexicans, relationships are paramount. P eople in Mexico adjust people, not rules. In the US, people obey rules, not people. Third, language proficiency may not necessarily be a requirement in conducting business nevertheless, proficiency in Spanish can help assignees forge and develop interpersonal relationships. talk the language goes a long way in helping the expatriate gain respect among colleagues. Fourth, annoyance rates is a serious issue in Mexico, and expatriates must be willing to adapt to any(prenominal) security measures are required to keep them safe. Understanding these key aspects of Mexicos culture and history can go a long way in establishing good working relationships in the new environment.While the content of the training program should highlight and assess the US expatriates understanding of Mexican culture and history, the training program should undergo different phases in the process. Noe (2002) suggest that the training program should have three phases mannequin 1 involves the pre-departure tra ining, Phase 2 involves the on-site training, and Phase 3 is on the repatriation training.The pre-departure training should involve employees development the language and an orientation in the new bucolics culture and customs. Noe (2002) suggest that the type of training most suitable would be language training, cultural awareness and sensitivity training, and daily living training. spoken communication training can be conducted in a classroom type setting, videos, or an interactive scholarship through conversations.Cultural awareness and sensitivity training aims to familiarize expatriates with cultural attitudes, communication styles, and cultural assumptions of the community. It also introduces the expatriates on the core cultural values, bias, and stereotypes that visitors need to be aware of. Daily living training includes providing expatriates with information about schools, housing, recreation and sports, shopping, transportation, utilities, banking, and health care facil ities in the country.The on-site training involves continued orientation to the emcee country and its customs and cultures through formal programs or through a mentoring relationship. The type of training suggested by the Bureau of National Affairs Human Resources Library includes continued language training, orientation, and mentoring. It is advisable that every employee sent overseas for training has a person who is responsible for well-being and is two levels above them in the corporation.That person is tasked with ensuring that the offshore employee is kept in the loop and comes home periodically for meetings or just to hang out. In addition, the continued orientation to the host country through a mentor both for the expatriate and his/her family is a must during the adjustment process. It is important to maintain an active communication and provide company newsletters to expatriates as well.The repatriation prepares employees for return to the home country. It aims to reduce s tress level and anxiety when they return. It is important to continue mentoring in the process and to organize career planning discussions with the expatriate. Repatriation phase is important and valuable to the company as expatriates have been equip with a good understanding of the global marketplace having been immersed in the different market. Expatriates also bring a global vision to day-to-day company practices. More importantly, they can be crucial members of international task forces and if left field un-valued, they can become significant assets to competitors.The three phases are important in the overall training-program design and maximising the return on investment of training-program. Nonetheless, it is important to note that while the LeaderMex program goal is to improve its market position by integrating the new subsidiary to UMCs, the key of ensuring a sound global business is building a solid infrastructure with topical anaesthetic talent. In the end, outstanding g lobal organizations will contain the outstanding local people in every business around the world.LeaderMex will ultimately consort an important role in the initial stages of building a company in a strange location, but in the long run, a qualified, well-trained group of local managers will be the key instrument to success. And, the reason for the development local managers can be because of the high costs associated with sending parent country nationals to foreign country with a high failure rate. Other benefits of developing local talents include local managers knowledge of the local market and business practices, cultural preferences, and local connections (Hsieh and Lavoie 1999).ReferencesBarling, J, Weber, T, and Kelloway K. (1996). Effects of Transformational lead Training on Attitudinal and Financial Outcomes a Field Experiment. Journal of Applied Psychology 81 (6) 827-832.Bass, BM (1990). From transactional to transformational leadership Learning to share the vision. Or ganizational Dynamics, 18(3) 19-36.Bass, BM and Avolio, BJ (1990). Transformational leadership development Manual for the multifactor leadership questionnaire. Palo Alto, CA Consulting Psychologists Press.The Bureau of National AffairsHuman Resources Library. (2000). Preparing Expatriates for Global Assignments.Corporate leaders Council (1999). Effective Repatriation Strategies.Corporate Leadership Council (2001). Cultural Training for Expatriates.Hofstede, G. (1993). Cultural Constraints in Management Theories. Academy of Management Executive, 7, 81-94.Howell, JM and Frost PJ (1989). A testing ground study or charismatic leadership. Organizational Behavior and Human Decision Processes 43 243-269.Hsieh, T. and Lavoie, J. (1999). Think global, take aim local. McKinsey Quarterly.Joinson, C. (2002). Save thousands for expatriate. 47, 7.Kirkpatrick, SA, and Locke EA (1996). Direct and indirect effects of three core charismatic leadership components on performance and attitudes. Journa l of Applied Psychology 8136-51.Koh, WL, Steers, RM, and Terborg JR (1995). The effects of transformational leadership on teacher attitudes and student performance in Singapore. Journal of Organizational Behavior 16 319-333.Mercer, W.M. (2000). Expatriates Risk Management Survey.Minehan, M. (2004). Prepping U.S. Employees for Mexican Success. SHRM Global Forum.Noe, R.A. (2002). Employee Training and Development. New York, NY McGraw Hill.SwaakR.A. Expatriate Failures. Executive Placement International Human Resources.Tarelli, E. (2003). How to Transfer Responsibilities to Local Nationals. SHRM Global Forum.1 Expatriate failure is defined as employees who return home before completing their assignments2 Individualism-collectivism describes the degree to which people act as individuals rather than as members of a group.3 Uncertainty avoidance refers to the degree to which people prefer structure rather than unstructured situations4 Masculinity-feminity refers to the extent to which the culture values behavior considered traditionally masculine (competitiveness) or distaff (helpfulness)5 Power distance refers to expectations for unequal distribution of power in a hierarchy6 Time orientation refers to the degree to which a culture focuses on the future rather than the past and present.