Why Do Some MNEs Appear Reluctant To Provide Basic Pre-Departure Training?

Abstract

Multinational Enterprises (MNEs) must have the ability to teach and improve their employees in order to compete in today’s global marketplace. In order to properly manage the international human resource management (IHRM) of their employees, multinational corporations (MNEs) must train expatriates and their families in the host country and in third-country nations (TCNs). The quality of training programs affects employees’ ability to assist expatriates in achieving the operational goals of MNEs. International training and development should be properly understood by coaches, executives, and organizations. As a result, this paper offers a review of the available literature on multinational enterprise (MNE) worldwide training and development. It shows how countries are training and developing their IHRM practices. International training and management development is well-served by the countries listed in this study. Additional recommendations for trainers and the MNE’s HR manager are included in the final section of this article. In addition, the topic will be presented from three perspectives: Pre-departure training is not considered necessary or effective by the company’s top executives. Prior to a foreign assignment, time and resources are at a minimum, and the effectiveness of practices for the achievement of an assignment must be demonstrated.

1.0 Introduction

International human resource management (IHRM) is an important management skill that contributes to the survival of many multinational corporations (MNEs). Human resources management is made up of many different roles that have to do with a company’s ability to hire and train people for international operations. Strategic planning, external conditions, and IHRM policies and procedures are the focus of these elements of IHRM IHRM policies and practices place a high priority on training and development (Kroese, 2022.p 708). In addition, IHRM’s international training and development is a critical activity with numerous potential benefits. MNEs need effective international training and management development from their managers if they are to achieve their objectivesThey care about the quality and impact of training programs since they can help expatriates achieve better in their jobs.

Expatriates require education and training to enhance their current work habits and abilities. Developing transferable skills is a priority for the company’s employees. Recognizing, developing, fostering, and deploying internal managers face a number of major challenges. In order to successfully integrate worldwide operations and cultivate a cross-national corporate culture, international management development is critical for MNEs (Kozhakhmet and Nurgabdeshov, 2022.p 628). Expat workers are also given training by multinational corporations, according to research. It improves the ability of local workers to integrate newly arrived expats. Cultural training is needed for expatriates and their families on Middle Eastern postings to help them understand housing, schools, currency, and health care issues. For expatriates and their families, cultural immersion is essential, and training helps them avoid any complications that can arise from their daily routines.

The question posed above will therefore be addressed in this study from the following three perspectives: Pre-departure training is considered unnecessary or ineffective by the company’s top management. Pre-departure pressures, such as limited time and resources; programs’ efficacy in ensuring a successful abroad assignment must be demonstrated.

2.0 International Training Provision

MNEs’ training programs, cost, and issues in Asian countries are examined by a number of academic articles (Malaysia, Philippines, Thailand and Singapore). Asian and non-Asian MNEs are compared in terms of training methods to identify relevant and successful training programs for practitioners and HR personnel (Tahir and Ertek, 2018.p 59). These programs help companies succeed in the fast-paced Asian business world. According to training literature and training practices, MNEs can’t manage all of the programs that are implemented in the workplaces. There are instances where training programs are successful for parent companies in their home nation but not for subsidiaries in other countries. Organizational characteristics like culture, structure, worldwide business strategy, and managerial philosophy may also play a role in training operations (Shen and Kim, 2022.p 342). In order to accurately estimate the results of training exercises, companies should take these aspects into account before beginning actual operations. Asian executives are also reported to be displeased with the training procedure, believing that these agendas are not necessary for local staffs to complete their professional development. They make the mistaken assumption that these training courses are of poor quality.

Only a handful of Chinese multinationals have their own training school for their employees or expats. No official mechanism exists for evaluating the performance or appraisal of expatriates in China’s multinational corporations (MNCs). MNEs rely heavily on in-house training provided by top managers or academics from outside the company. External consultants are not used by multinational enterprises. All expatriates are educated in the same manner. The various ways of training are also provided by MNES, such as reconnaissance trips overseas and probation. Europe or other non-Asian management expect MNE headquarters training programs to help local staff perform better (Tahir, 2020.p 417). There is an assumption that training programs that are useful and vital for firms in the current competitive business environment are assumed to exist. When it comes to training for personnel with higher education levels, MNEs want to focus on the cost-benefit ratio. Training the workforce with increased learning capacity suggests that the training strives to increase employee performance. Irish MNEs receive comprehensive training packages, similar to those that other companies offer their staff who travel to foreign countries.

2.1 Reasons for not Providing Adequate Training

Many host countries lack efficient English training, according to some academics. The training program is too short since MNEs don’t give employees enough time to work through the material they’ve learned. No, it won’t assist expatriates learn how to speak English better. It’s also unclear how the training practices of Asian MNEs, such as in China and Indonesia, differ from one another.

3.0 Effectiveness of Pre-Departure Training

Virtual, metropolitan, and remote assignments are being used by certain companies to avoid travel limitations and the accompanying costs of expatriate assignments, which can run into the tens of thousands of dollars. Many companies will continue to see the value of global mobility in their growth and workforce development plans. Pre-departure training will continue to be a key part of these employees’ preparations for moving away from the assistance of family and friends to a new nation and culture. Management issues for expats might arise at any stage of their assignment from an HR perspective. As they prepare to relocate, this is one of the most challenging times. As they prepare to leave, many expats must balance the demands of their business with those of their families. As global mobility becomes the ‘new normal,’ it will be critical to develop an effective pre-departure training program that includes cross-cultural training.

3.1 Models to measure the effectiveness of pre-departure training

A variety of training models have been created throughout the years to allow people who provide training to explore and analyse the effectiveness of that training in changing behaviour in the desired direction. It’s great that most models can be applied to nearly any training method. An evaluation method known as the Kirkpatrick model (Elvis et al, 2020. P.79) is used as a foundation for many others. It was developed in the 1950s and is a four-step process:

Level 1: Reaction

How did the attendees feel about the training session? If the majority of responses are favourable, it indicates that the circumstances for learning were present in the individual company. If this isn’t the case, the company needs to figure out why and make adjustments to the content or delivery method.

Level 2: Learning

Assessments are a common feature of most training courses. In other words, it’s theoretical or it’s real. As a result, it’s easier to make sure that everyone in attendance comprehended what was spoken.

Level 3: Behavioural

Only after training, in the weeks and months that follow, can this level be evaluated. It is the most critical component of all training, as it demonstrates whether or not the instruction has had the intended effect on performance.

Level 4: Results

Stakeholder expectations, or ROE, is a key component of the Kirkpatrick model (Return on Expectations). Setting realistic training objectives is critical for all types of exercise. When a corporation gathers data following a training session, it can utilize this information to determine if the training was successful or not and make adjustments for future sessions.

However, there are a number of additional training assessment models suitable for pre-departure training, such as the Philips ROI model, which also takes into account training costs and expat assignments when assessing its performance.

4.0 Time and resource constraints before the start of an international assignment

Increasing numbers of organizations are expanding internationally, and they are increasingly depending on expatriates to run their worldwide operations. Employers are more likely than not to provide short-term assignments, long-term assignments, and lasting transfers according to the KPMG poll (Kubovcikova and van Bakel, 2022. P 534).

According to Robert Lockley, a former principal in Mercer’s worldwide division, “the growth in global assignment has been pushed by organizations’ ambition to be globally competitive (Elvis et al, 2020. P.71).” If a company wants to get a leg up on the competition by launching new businesses abroad, they bring in specialists from other countries to develop a solution on a short-term basis.

4.1 Identifying the Need for International Assignment

There are a variety of reasons why an employee might be sent to another country:

• Making a difference in an existing process.
• Incorporating a client’s technology or knowledge into one’s own workplace.
• Personal and professional growth in an international context through the accomplishment of difficult tasks.
• Analysis of the marketplace to see if the company’s products and services will be appealing to consumers and other customers.
• A brand-new product or service is being introduced to the market.
• Longevity and identification of potential employees are both dependent on the international assignment’s purpose.

4.1.1 Selection Process

Selecting the right person for the job will be easier if you know what you want out of the experience. However, a techie may be better adapted for the implementation of new technologies and services than a sales executive.

If company is going to send someone to another country for a job, company need to make sure they have a global mentality as well as the technical capabilities necessary for the position. This is especially true in light of the rising importance of international assignments in leadership and staff training.

As an expatriate, your capacity to influence individuals, teams, and organizations with a distinct cultural perspective is critical for your success. An investigation by the Thunderbird School of Global Management and the Worldwide ERC Foundation for Workforce Mobility has found that cultivating certain personal characteristics in employees might help them develop a global mindset (Mencutek, Z.S., 2022.p 192).

Worldwide ERC Foundation interviews with senior industry executives demonstrate that expats have little time to learn on-the-job, and thus they must be well-prepared when they arrive in a new location. As a result, businesses must incorporate a test to determine whether or not a candidate has a global mentality in the hiring process.

The study found that successful expatriates have three main characteristics:

The ability to think critically and creatively: Complexity of thought; knowledge, talents, and understanding

Mental capital: Learning and adapting successfully to the culture of the host country requires an openness to new ideas and a willingness to accept new ideas.

A person’s ability to influence others: An organization’s trustworthiness is based on its capacity to establish and maintain relationships with a wide range of local stakeholders.

Caroline Kersten, a Global HR Consultant, says that global administration differs significantly from home administration, and that expatriates must be equipped with skills that allow them to thrive in an international setting. Both men and women are expected to have the ability to be culturally sensitive, open-minded, and adaptable in their leadership roles around the world.

5.0 Effectiveness of programs for the success of an international assignment

There has been a long-held belief that international assignments are a once in a lifetime experience, and hence they are treated as such. The short-term demands of the assignee, particularly, are given considerable attention throughout the process. The usual approach will no longer suffice in the face of the current economic crisis and the growing number of personnel participating in these expensive international endeavours — a single long-term assignment can easily exceed $1 million in US dollars (Shen et al., 2021.p 332). There must be consideration of long-term as well as short-term goals for both companies and employees when making such large-scale assignments, in order to ensure that a business is well-positioned for long-term and short-term performance. Boosting the efficacy of overseas assignments by aligning them with the objectives of a company and its assignees is a key step toward increasing the number of international assignments.

6.0 Recommendation

As part of the pre-deployment process, multinationals should choose home sponsors or mentors who are responsible for informing the expatriate on changes in the host country. An organized pre-return orientation and the sharing of work-related information must take place during the assignment. Expatriates and their families will benefit from the ability to return to their home country on a regular basis in order to maintain contact with co-workers, family members, and friends while also keeping up with the ever-changing business environment (Situmorang and Japutra, 2019.p71) When you get back, you’ll have to take care of housing difficulties. Relocation of children’s schools and family survival activities necessitates new locales. Expats should be provided with a new work place as well as an introduction to their new employer’s culture. Re-establishing ties with the company’s local and social networks, as well as making adjustments to one’s personal and professional life, are all part of the process of moving back to one’s home country.

Expats must possess a number of essential qualities to succeed when working abroad.

The following are examples of qualities that are required:

• Individualism, persistence, and a strong work ethic all contribute to a sense of self-confidence.
• Resilience, adaptability, and the able to handle with uncertainty are all aspects of flexibility and problem-solving ability.
• Social awareness, observation, listening, and communication abilities.
• Personal motivations and anchors, as well as a willingness to take chances, are necessary for change management skills.

The younger generation’s enthusiasm in and placement in international assignments is on the rise. Female expats are also needed, say experts, because of the predicted leadership shortfall and the value businesses place on gender-mixed management teams.

7.0 Conclusion

In the administration of multinational corporations, international human resource management is a key component. In order to be a successful firm, training and management development are critical. International education and training have numerous advantages. Expatriates’ present working skills can be improved through training. An enhancement for future effort is what we mean when we say that something has been developed. The development of cross-national cultures and the integration of multinational operations are both encouraged by international management development for expatriate employees around the world, too. In addition, it enables expatriates and their families comprehend the culture of the host country. Expatriates who work well with their co-workers from other countries. Their families are capable of handling day-to-day tasks with ease. Additionally, MNEs benefit from training and management development, which aids in the exchange of employee expertise. For MNES to succeed in international competitiveness, international training and development are critical. MNEs should offer training and management development to their entire workforce. They should have a clear training strategy in order to encourage their personnel to recognize the relevance of training and development programs. Trainers should have an understanding of the culture of expatriates. Visitors to another nation should be ready to learn the local language and customs before arriving. In addition, they learn about some of the methods they will use on the job.

8.0 Reference

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