empirical developments in cross cultural human resource management1

8/8/2019 EMPIRICAL DEVELOPMENTS IN CROSS CULTURAL HUMAN RESOURCE MANAGEMENT1

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Presentation on Cross CulturalPresentation on Cross Cultural

developmentsdevelopments

Presented By,Presented By,JAY BHATTACHARJEEJAY BHATTACHARJEE


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EM PIRICAL D EVE LOP MENTS IN CRO SS EM PIRICAL D EVE LOP MENTS IN CRO SS CUL T URAL HU M AN R ES OURC E M ANAG EMENTCUL T URAL HU M AN R ES OURC E M ANAG EMENT

TheThe abilityability toto copecope withwith culturalcultural relativityrelativity isis thethe keykeyrequirementrequirement for for globalglobal managersmanagers toto succeedsucceed todaytoday andandtomorrowtomorrow. .

ToTo createcreate opportunitiesopportunities for for internationalinternational collaboration,collaboration,globalglobal leadersleaders mustmust learnlearn notnot onlyonly thethe customs,customs, courtesies,courtesies,andand protocols protocols of of their their counterpartscounterparts fromfrom other other countries,countries, theythey

mustmust alsoalso understandunderstand thethe nationalnational cultureculture andand mindsetsmindsets of of thethe people people..


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Ty pes of CrossTy pes of Cross- -Cultural GroupsCultural Groups

Groups with a single representative from aGroups with a single representative from adifferent culturedifferent culture -- The role of a singleThe role of a single

foreigner, sometimes called a token, hasforeigner, sometimes called a token, has been found to depend on his or her actual or been found to depend on his or her actual or perceived status. A token can be an extreme perceived status. A token can be an extremeinstance of minority, in which case he or sheinstance of minority, in which case he or shetends to be treated as invisible by the rest of tends to be treated as invisible by the rest of the teamthe team


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Groups with a majorit y/minorit y splitGroups with a majorit y/minorit y split . This. Thistype of crosstype of cross --cultural groups is usuallycultural groups is usually

associated with stereotypes and a somewhatassociated with stereotypes and a somewhatignorant behavior of the majority towards theignorant behavior of the majority towards theminority. This usually results in mistrust andminority. This usually results in mistrust anddislike among the team members.dislike among the team members.


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B icultural groupsB icultural groups with approximately equalwith approximately equalnumbers of representatives from each culture.numbers of representatives from each culture.

Although usually described as the optimalAlthough usually described as the optimalcomposition, workgroups of this type may alsocomposition, workgroups of this type may alsoexperience communication and cooperationexperience communication and cooperation

problems. It has been found that in cross problems. It has been found that in cross --

cultural settings people often find themselvescultural settings people often find themselvesmore attracted to those from their own culture.more attracted to those from their own culture.


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Groups with representatives from multipleGroups with representatives from multipleculturescultures with no obvious majority. These arewith no obvious majority. These are

frequently referred as global teams and havefrequently referred as global teams and have been mainly discussed in relation to increased been mainly discussed in relation to increasedlevels of complexity in crosslevels of complexity in cross --culturalculturalcommunication. On the other hand, if managedcommunication. On the other hand, if managed

properly, teams of this type are least likely to properly, teams of this type are least likely toexperience groupthink and are most likely toexperience groupthink and are most likely toachieve diversityachieve diversity -- based synergy. based synergy.


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Single event teamsSingle event teams . For example, teams representing. For example, teams representingtheir companies in a single negotiation episode. In thetheir companies in a single negotiation episode. In theliterature, the issues of crossliterature, the issues of cross --cultural communicationcultural communication

and differences in traditions and protocols are usuallyand differences in traditions and protocols are usuallydiscussed in relation to single event teams. Becausediscussed in relation to single event teams. Becausethe team members spend only a short period together,the team members spend only a short period together,they frequently have no time or interest to learn morethey frequently have no time or interest to learn moreabout each other. As a result, the team members mayabout each other. As a result, the team members maymisinterpret behavior of their counterparts andmisinterpret behavior of their counterparts andexperience misunderstandings and difficultiesexperience misunderstandings and difficultiesachieving agreement.achieving agreement.


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ShortShort--term project teamsterm project teams . For example, a team of . For example, a team of technical experts installing equipment for a foreigntechnical experts installing equipment for a foreign

partner. Short partner. Short -- project teams are usually described as project teams are usually described asthe least likely to experience serious problems causedthe least likely to experience serious problems caused

by cross by cross --cultural differences. First, project teamscultural differences. First, project teamsusually have a clear goalusually have a clear goal project completion project completion thatthatunites the team. Second, working together for only aunites the team. Second, working together for only ashort period of time, the team members may never short period of time, the team members may never reach the point where conflict becomes unbearablereach the point where conflict becomes unbearable


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Permanent workgroupsPermanent workgroups . Typically associated. Typically associatedwith stable, fullwith stable, full --time membership, permanentstime membership, permanentsworkgroups usually produce goods or provideworkgroups usually produce goods or provideservices. In most cases, permanent workteamsservices. In most cases, permanent workteamsare assumed to consist of grassrootsare assumed to consist of grassrootsemployees.employees.


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M anagement or executive teamsM anagement or executive teams . These are. These areresponsible for providing direction andresponsible for providing direction andcoordination of subunits. Although executivecoordination of subunits. Although executiveteams are typically created to work together teams are typically created to work together over an extended period of time, the teamover an extended period of time, the teammembers usually meet only periodically for members usually meet only periodically for

problem problem --solving or improvementsolving or improvement --orientedoriented projects projects


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Strategic Role of InternationalStrategic Role of International

Assignments for OrganizationsAssignments for OrganizationsTheThe keykey toto successsuccess for for internationallyinternationally activeactive organizationsorganizations isisdevelopingdeveloping globalglobal leadersleaders.. GlobalGlobal firmsfirms understandunderstand thisthis.. AtAtDaimlerChrysler,DaimlerChrysler, Dieter Dieter ZetscheZetsche firstfirst turnedturned aroundaround thetheChrysler Chrysler operationsoperations. . Now Now hehe isis CEOCEO of of thethe entireentire groupgroup.. HisHisformer former colleaguecolleague atat Chrysler,Chrysler, WolfgangWolfgang Bernhard,Bernhard, became became thethenumber number twotwo executiveexecutive of of thethe competitor competitor VolkswagenVolkswagen andand isisnownow responsibleresponsible for for thethe VolkswagenVolkswagen brand brand car car operationsoperations. .TheseThese examplesexamples showshow thatthat thethe childrenchildren of of globalizationglobalization havehaveaa competitivecompetitive advantageadvantage over over rivalsrivals withoutwithout thisthis kindkind of of internationalinternational experienceexperience. . TodayToday itit isis understoodunderstood inin toptop

managementmanagement thatthat thethe realizationrealization of of opportunitiesopportunities alsoalso isis aafunctionfunction of of internationalinternational experienceexperience andand perspective perspective. . AtAt thethesamesame time,time, internationalinternational assignmentsassignments areare thethe singlesingle mostmostexpensiveexpensive per per -- person person investmentinvestment inin globalizingglobalizing thethe workforce,workforce,andand theythey areare aa riskyrisky business business. .


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When integration into the next responsibility fails, the best talents leave.When integration into the next responsibility fails, the best talents leave.Wolfgang Bernhard serves as an example again. After having been highlyWolfgang Bernhard serves as an example again. After having been highlysuccessful as head of DaimlerChryslers AMGsuccessful as head of DaimlerChryslers AMG --division and the Sdivision and the S --classclass

production, he was sent to Chrysler for some years. There he had a cost production, he was sent to Chrysler for some years. There he had a costcutting agenda and developed a consistent mentality andcutting agenda and developed a consistent mentality andstraightforwardness. Upon his return to corporate headquarters, he wasstraightforwardness. Upon his return to corporate headquarters, he wasnominated to be the leader of the Mercedes car division. Two days beforenominated to be the leader of the Mercedes car division. Two days beforehis assumption of office, he had lost the confidence of his predecessor andhis assumption of office, he had lost the confidence of his predecessor andthe workers council alike due to his culturally surprisingthe workers council alike due to his culturally surprisingoutspokenness.DaimlerChryslers CEO, Jrgen Schrempp, declined hisoutspokenness.DaimlerChryslers CEO, Jrgen Schrempp, declined hisappointment.appointment.

To overcome such obstacles and to improve the return on theTo overcome such obstacles and to improve the return on theinvestment in internationally operating leaders, companies must understandinvestment in internationally operating leaders, companies must understand

best practices and the body of scientific research. best practices and the body of scientific research.


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Selection and T raining of GlobalSelection and T raining of Global

M anagersM anagersIdentifying and selecting the right people is the first crucialIdentifying and selecting the right people is the first crucialtask in the global assignment success cycle. Companies findtask in the global assignment success cycle. Companies findanswers to questions about what characteristics should be usedanswers to questions about what characteristics should be usedin selecting expatriates, why expatriates are likely toin selecting expatriates, why expatriates are likely toaccept/reject international assignments, or how a larger pool of accept/reject international assignments, or how a larger pool of

potential international assignees can be identified and potential international assignees can be identified anddeveloped. The instruments suited for screening and selectingdeveloped. The instruments suited for screening and selectingfuture global leaders like interviews, questionnaires, or future global leaders like interviews, questionnaires, or assessment centres also need to be identified. These tools helpassessment centres also need to be identified. These tools help

to understand who is more likely to be successful overseas.to understand who is more likely to be successful overseas.Only recently, a metaOnly recently, a meta --analysis with more information aboutanalysis with more information aboutthe validity of predictors to be used in instruments becamethe validity of predictors to be used in instruments becameavailableavailable


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The competency model by Khlmann and Stahl (2001) and KhlmannThe competency model by Khlmann and Stahl (2001) and Khlmann(2004) applied in intercultural assessment centers comprehends the(2004) applied in intercultural assessment centers comprehends thefollowing elements:following elements: tolerance of ambiguity tolerance of ambiguity behavioural flexibility (ability to quickly adjust to changing environment behavioural flexibility (ability to quickly adjust to changing environment

and to use a wide behavioural repertoire)and to use a wide behavioural repertoire) goal orientation goal orientation sociableness/openness to experience (actively manage social contacts) sociableness/openness to experience (actively manage social contacts) empathy empathy polycentrism (to be without prejudice to opinions, attitudes and polycentrism (to be without prejudice to opinions, attitudes and

behaviours) behaviours) meta meta--communicative competence (ability to actively control difficultcommunicative competence (ability to actively control difficult

conversations and to solve communication problems)conversations and to solve communication problems)


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Integration of Assignees into aIntegration of Assignees into a

Subsequent T ask Subsequent T ask Expatriates change during an internationalassignment. Most of these managers have acquirednew skills and new mental maps during their years ina different culture. For companies, it is now a crucialtask to find new challenges for these individuals thatthey and their families look forward to. In manycases, the process leading to a subsequent task is not

planned well, or even worse, not planned at all. Thiscontributes to a high turnover rate after thecompletion of a global assignment.


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A brief example of DaimlerChrysler Financial Services showsA brief example of DaimlerChrysler Financial Services showshow this process can be managed professionally .how this process can be managed professionally .DaimlerChrysler Financial Services has developed this routineDaimlerChrysler Financial Services has developed this routineto enhance return on investment by focusing greater attentionto enhance return on investment by focusing greater attentionon the process of identifying a subsequent position. Theon the process of identifying a subsequent position. Thecompany increased the number of discussions with expatriatescompany increased the number of discussions with expatriatesabout their performance and potential while they are on aabout their performance and potential while they are on aglobal assignment. Career development discussions are nowglobal assignment. Career development discussions are nowrealized with the management in both host and home countriesrealized with the management in both host and home countries

of the assignee. To support a smooth process leading to aof the assignee. To support a smooth process leading to asubsequent task, a development committee composed of allsubsequent task, a development committee composed of allheads of business divisions was inaugurated.heads of business divisions was inaugurated.


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The committee meets quarterly to discussThe committee meets quarterly to discussinternational talent available for succession planninginternational talent available for succession planningand job openings worldwide. This process isand job openings worldwide. This process is

supported by the identification of mentors in thesupported by the identification of mentors in thehome country to insure that managers working abroadhome country to insure that managers working abroadare made aware of new developments at home.are made aware of new developments at home.Additionally, the mentor is made aware of changesAdditionally, the mentor is made aware of changesaffecting the employee on the assignment. Thisaffecting the employee on the assignment. This

process starts nine to twelve months before the process starts nine to twelve months before thetermination of any expatriates contract.termination of any expatriates contract.


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Patterns of GlobalizationPatterns of GlobalizationAlthough the before mentioned aspects of people management apply to all firmsengaged in transferring people across national borders, different issues emerge as afunction of the stage or pattern of a firms globalisation. In export firms, theregenerally is a low use of expatriate managers. Home - based managers withgeographical or product responsibilities visit various countries. Some internationalmanagers exist having broad geographical responsibilities.

Global Strategy Multinational Corporations (MNCs), such as DaimlerChrysler or Volkswagen, have extensive coordination among their international units. Theyutilize more international managers for coordination and control using a commonorganizational culture across worldwide operations. MNCs depend on their expatriates contribution to international strategy formulation and implementation.They need to have effective succession management and repatriation policies tostaff its management ranks with global leaders with the requisite international

knowledge and experience the company needs to compete effectively. Multi -focalCorporations, like Airbus Industries, are within industries in which a firms positionin one country is influenced by its competitive position in another. Multi -focalCorporations would like to place individuals with specific skills in appropriateinternational locals. They must still focus on developing managers and executiveswith global leadership capabilities independent of nationality.


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T hank YouT hank You

empirical developments in cross cultural human resource management1

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