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TRAINING GLOBAL MANAGERS

One of the reasons why the Japanese have been so successful in penetrating world markets is that they have understood and responded to the challenges of doing business in alien countries and cultures. Japanese expatriate personnel are far better equipped than their American counterparts for living and working abroad.

In a recent survey, three-quarters of the 80 US corporations responding reported that between 10% and 40% of their person­nel assigned overseas had to be recalled or dismissed due to poor performance. Only 14% of the 35 Japanese companies responding reported a failure rate of over 10% and in no case did it reach 20%.

Maintaining a US family overseas costs an average of $200,000 per year. Recalling key personnel is not only expensive but also highly disruptive, often leading to confusion and lost opportu­nities. Furthermore, an expatriate who is recalled will, in most cases, leave the company even though his or her performance may have been good prior to the overseas assignment. Replacing him or her means that the company has permanently lost a valuable human asset.

Even those US expatriates who complete their assignments may not be working to full capacity and although technically they have not failed, they may be costing their company a great deal in foregone profits.

The reason why Japanese and American expatriates perform so differently may be explained by the better preparation and support which Japanese managers and technicians receive. In Japanese companies, a thorough selection is made at least one year before the assignment is to begin, so that anybody at risk is rejected.

The selection procedure is followed by a training programme where assignees learn the culture, customs, language and ways of doing business in the host country. They learn that they will have to do without many home-country comforts, and to accept, respect and even enjoy inconvenient customs and procedures.

Upon arrival in the country, the Japanese expatriate is as­signed a mentor. This is usually a local person who will help the newcomer to settle in and get through the first year or so.

During their assignments Japanese managers or technicians are in constant contact with head office. They are kept up-to-date on any changes that take place during their absence and this reduces any worries about returning home. They also know that their foreign assignments are an integral step in their career plans.

Two-thirds of American companies have no formal training programs to prepare personnel for overseas work. The other third limit their training to an informational briefing just before de­parture, but with no simulation activities or question-and-answer sessions with host nationals. Furthermore, no attempt is made to involve the family in preparing themselves for their new environment. Many expatriate personnel are recalled because their spouse or children cannot adapt, and this creates immense pressure on the whole family.

One of the reasons why American companies are so reluctant to set up effective training and support programmes is that a trend has developed to replace expatriate personnel by host-country nationals. However, the increasing globalisation of business has led to a net increase in the number of Americans working overseas, in spite of the trend to replace them. This increase is likely to continue if American headquarters want to maintain and strengthen links with their overseas businesses.



Expatriate personnel may be divided into three categories, each with its own set of needs. Firstly, there are the short-stay technicians engaged in technical assistance or the transfer of technology. Because they rarely stay for more than a few months abroad their needs are mainly limited to techniques for survival. For example, they will need to know something of the uniqueness of the host-country culture and learn to engage in activities which make life in an alien land tolerable.

Secondly, there are the long-term expatriates whose needs go beyond pure survival. Learning to be effective is a major chal­lenge, and this means knowing what to expect, how to read cues, and how to adjust one's management style to the foreign culture. Furthermore, learning to enjoy the foreign culture is essential in order to avoid culture fatigue.

The third type of expatriate is the foreign national coming to America, and they too have their own needs which must be met.

Any training programme must take into account the different needs of these three groups. It should also be specific to the country of assignment or, in the case of foreign nationals coming to America, the country of origin. Cultural differences encoun­tered in France are very different from those in Russia, Nigeria or Saudi Arabia, and it is the instructor's job to identify these differences, explain why they might be problematic and teach the skills necessary to cope with them and, ultimately, to appreciate them.

 

Exercise 1

1. How do US and Japanese expatriate personnel cope with overseas assignments?

2. What are the costs of the high rate of failure among US expatriates?

3. What do the Japanese do to minimise their failure rate?

4. What training activities are available for American managers and technicians working overseas?

5. What are the three kinds of expatriates and what are their needs?

 

Exercise 2

In small groups choose a host country and an expatriate group. Make a list of all the cultural differences which an expatriate and his or her family may encounter in that country and which may be problematic.

 

Example:

Host country: USA

Expatriate group: Algerian technicians on a six-month technology transfer assignment

Cultural differences: food (need to adapt to a diet of highly processed food; difficulties in obtaining basic items)

sex roles (women have equal status and identical rights)

smoking (forbidden in public places; frowned upon by many Americans)

punctuality (for both professional and social activities)

informality (in dress, use of Christian names)

Here are some further ideas to help you get going:

 

Exercise 3

Greetings: How do people greet each other? Do they embrace, shake hands, avoid physical contact? Do they use first names or surnames? Is there a high regard for rank or social position? How is this manifested? Is there a rigid code for greetings or are many things permissible?

 


 

Unit VII


Date: 2014-12-21; view: 1259


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