BAM 6004

INTERNATIONAL HUMAN
RESOURCES MANAGEMENT

Session 5
 Functions of HRM

• HRM has 2 functions

– Management
–Operative
 Operative Functions of HRM

• Operative functions are related to:

1. Human Resources Planning

2. Staffing
3. Performance Management
4. Training and Development
5. Compensation and Benefits
6. Industrial relations
 Operative Functions of HRM

• Operative functions consists of:

1. Procurement
2. Development
3. Motivation & Compensation
4. Maintenance
5. Integration
6. Emerging Issues
 Operative Functions of HRM

2. Development FUNCTION

• Training
• Executive Development
• Career Planning & Development
• Human Resources Development
 Management development and
training

• Training and developing new skills and

adapt to new technology
• Educational programs
• Career development program
 Think about
the following!

What training and development do people receive

in their job? Is it appropriate? Why or why not?
 What is HRD?
 “HRD is about the combined use of learning and
interpersonal strategies and practices within an
organisation to accomplish high levels of individual and
organisational effectiveness” (Sofo, 2000, xxvi)

 “Human resource development refers to the

integrated use of training and development,
organizational development, and career development to
improve individual, group, and organizational
effectiveness” (Noe, 2002, p.29)
 What is Training?
Training is “a planned process

to modify attitude, knowledge or skill

behaviour

through learning experience

to achieve effective performance

in an activity or range of activities.

“Training sounds like

something you do to Its purpose, in the work situation, is to
people. Development is develop the abilities of the individual
what happens within and to satisfy the current and future
people.” needs of the organisation.”
- SkillSoft

Source: Manpower Services Commission. (1981) Glossary of Training Terms. (p. 62)
• Training is described as focusing on the
acquisition of KSAs needed to perform
more effectively on one’s current job.
• Training is the systematic process of
attempting to develop KSAs for current
or future jobs.
• In short, Training provides the
opportunity for learning and
development is the result of the
learning.
 Source: Pinnington, A. & Edwards, T. (2005) Introduction to Human Resource Management. University Press: Oxford. (pp. 190 – 192)
Pedler, M., Burgoyne, J. & Boydell, T. (1991) The Learning Company: A strategy for sustainable development. McGraw-Hill: London. (pp. 26 – 27)
Training Process
Systems Model of Training
Phase 4:
Evaluation
________________
Phase 3: • Reactions
Implementation • Learning
________________ • Behavior transfer
Phase 2: • On-the-job • Results
Design methods
________________ • Off-the-job
• Instructional methods
Phase 1:
• Management
Needs Assessment objectives development
________________ • Trainee
readiness
• Organization
analysis • Learning
principles
• Task analysis
• Person analysis
Systems Model of Training
Phase 4:
Evaluation
________________
Phase 3: • Reactions
Implementation • Learning
________________ • Behavior transfer
Phase 2: • On-the-job • Results
Design methods
________________ • Off-the-job
• Instructional methods
Phase 1:
• Management
Needs Assessment objectives development
________________ • Trainee
readiness
• Organization
analysis • Learning
principles
• Task analysis
• Person analysis
 The Needs Analysis Process

Person Characteristics
• Input
• Output
• Consequences
• Feedback
Organizational Analysis
• Strategic Direction
Do We Want To Devote Time and
• Support of Managers, Peers Money For Training?
& Employees for Training
Activities
• Training Resources Task Analysis or Develop a
Competency Model
• Work Activity (Task)
• KSAs
• Working Conditions
Systems Model of Training
Phase 4:
Evaluation
________________
Phase 3: • Reactions
Implementation • Learning
________________ • Behavior transfer
Phase 2: • On-the-job • Results
Design methods
________________ • Off-the-job
• Instructional methods
Phase 1:
• Management
Needs Assessment objectives development
________________ • Trainee
readiness
• Organization
analysis • Learning
principles
• Task analysis
• Person analysis
 What Is Learning?

Learning is a relatively
permanent change in human
capabilities that is not a
result of growth processes.
These capabilities are
related to specific learning
outcomes.
Program Design
How Trainers Can Make the Training Site
and Instruction Conducive to Learning:

Creating A Learning
Setting Preparation

Classroom
Management

Engaging Trainees
Managing Group
Dynamics
Systems Model of Training
Phase 4:
Evaluation
________________
Phase 3: • Reactions
Implementation • Learning
________________ • Behavior transfer
Phase 2: • On-the-job • Results
Design methods
________________ • Off-the-job
• Instructional methods
Phase 1:
• Management
Needs Assessment objectives development
________________ • Trainee
readiness
• Organization
analysis • Learning
principles
• Task analysis
• Person analysis
 Choosing a Training Method
1. Identify the type of learning outcome that
you want training to influence
2. Consider the extent to which the learning
method facilitates learning and transfer
of training
3. Evaluate the costs related to
development and use of the method
4. Consider the effectiveness of the training
method
Traditional Training Methods
Categories

Presentation Methods

Hands-On Methods

Group Building
Methods
 Presentation Methods
• Methods in which trainees are passive
recipients of information
• This information may include:
– facts or information
– processes
– problem-solving methods
• Presentation methods include:
– lectures
– audio-visual techniques
 Hands-on Methods
• Training methods • Methods include:
that require the – on-the-job training
trainee to be (OJT)
actively involved in – simulations
learning – case studies
– business games
– role plays
– behavior modeling
 Hand-on Methods: Business
Games
• Require trainees to gather information, analyze
it, and make decisions

• Primarily used for management skill

development

• Games mimic the competitive nature of business

 Transfer of Training
• Trainees effectively and continually applying
what they learned in training on their jobs

• The work environment plays an important role in

ensuring that transfer of training occurs

• Transfer of training is also influenced by:

– trainee characteristics
– training design
Obstacles in the Work Environment
that Inhibit Transfer of Training
Systems Model of Training
Phase 4:
Evaluation
________________
Phase 3: • Reactions
Implementation • Learning
________________ • Behavior transfer
Phase 2: • On-the-job • Results
Design methods
________________ • Off-the-job
• Instructional methods
Phase 1:
• Management
Needs Assessment objectives development
________________ • Trainee
readiness
• Organization
analysis • Learning
principles
• Task analysis
• Person analysis
Training evaluation provides the
data needed to demonstrate that
training does provide benefits to
the company.
The Evaluation Process

Conduct a Needs Analysis

Develop Measurable Learning Outcomes

and Analyze Transfer of Training

Develop Outcome Measures

Choose an Evaluation Strategy

Plan and Execute the Evaluation

 Why Should A Training Program Be
Evaluated? (1 of 2)
• To identify the program’s strengths and
weaknesses
• To assess whether content, organization,
and administration of the program
contribute to learning and the use of
training content on the job
• To identify which trainees benefited most
or least from the program
 Why Should A Training Program Be
Evaluated? (2 of 2)
• To gather data to assist in marketing
training programs
• To determine the financial benefits and
costs of the programs
• To compare the costs and benefits of
training versus non-training investments
• To compare the costs and benefits of
different training programs to choose the
best program
 Outcomes Used in Evaluating
Training Programs: (1 of 4)

Cognitive Skill-Based
Outcomes Outcomes

Return on
Affective Results Investment
Outcomes
 Outcomes Used in Evaluating
Training Programs: (2 of 4)
• Cognitive outcomes
– determine the degree to which trainees are familiar
with the principles, facts, techniques, procedures, or
processes emphasized in the training program
– measure what knowledge trainees learned in the
program
• Skill-based outcomes
– assess the level of technical or motor skills
– include acquisition or learning of skills and use of skills
on the job
 Outcomes Used in Evaluating
Training Programs: (3 of 4)
• Affective outcomes
–include attitudes and motivation
–reaction outcomes – trainees’ perceptions of
the program including the facilities, trainers,
and content
• Results
–determine the training program’s payoff for the
company
 Outcomes Used in Evaluating
Training Programs: (4 of 4)
• Return on Investment (ROI)
–comparing the training’s monetary benefits
with the cost of the training
• direct costs
• indirect costs
• benefits
Systems Model of Training
Phase 4:
Evaluation
________________
Phase 3: • Reactions
Implementation • Learning
________________ • Behavior transfer
Phase 2: • On-the-job • Results
Design methods
________________ • Off-the-job
• Instructional methods
Phase 1:
• Management
Needs Assessment objectives development
________________ • Trainee
readiness
• Organization
analysis • Learning
principles
• Task analysis
• Person analysis
Think about
the following!

Share your understanding of Training and

Development when it involves training
internationally
 Content of Training Programs

• Lack of training is one of the principal causes of failure among

employees working internationally. Those working internationally need
to know as much as possible about
• (1) the country where they are going
• (2) that country’s culture, and
• (3) the history, values and dynamics of their own organizations.

• Preparing for an international Assignment one should be acquainted

with the following aspects of the host country:

• Social and business etiquette

• History and folklore
• Current affairs
• Cultural values and priorities
• Geography, especially its major cities
• Source of pride and great achievements of the culture
• Practical matters such as currency, transportation, time zones
• The language
Figure 1 Necessary skills and abilities for international managers
 Think about
the following!

Do you agree that there can be expatriate failure?

Share your thoughts

• Expatriate failure - the early return of an expatriate
manager to his or her home country because of an
inability to perform in the overseas assignment.

• High failure rate of expatriate assignments

• The selection process in international firms is particularly

important because of the high cost of expatriate failure
(between US$40,000 and US$250,000).

• When selecting from a pool of prospective managers, HR

managers look for individuals who are competent
managers, have appropriate training, and can adapt to
new situations.

• A combination of tests and interviews.

Compensation for expatriates
• International firms need to provide compensation
packages for their managers which are
competitive in each market.
• Compensating expatriate managers is a complex
process - differences in currency valuation,
standards of living, lifestyle norms, and other
factors.
• Benefits packages for expatriate managers:
– Housing, education for family members, medical
insurance, travel to the home country
Think about
the following!

What is your understanding of Culture Shock?

• Expats on foreign assignments may experience
culture shock.
• Cultural shock is a psychological phenomenon that
may lead to feelings of fear, helplessness,
irritability, and disorientation.
• An expatriate suffering from culture shock may be
less effective and productive.
• Acculturation is the processes by which a person
understands a foreign culture and modifies their
behaviour to fit into it.
• Culture shock and acculturation typically proceeds
through several phases (see over)
Figure 3 Phases in acculturation
Culture shock can lead to :

– Behavioral manifestations (eg absenteeism, health issues)

– Psychological manifestations
• Anxiety; nervousness; hysterical reactions, depression;
fatigue. tension, insomnia
• Feelings of hopelessness and a strong desire to interact
only with members of one's own nationality.
• Repatriation - bringing a manager back home
after a foreign assignment has been completed.
• Individuals who successfully adapted to the
foreign environment may experience culture
shock upon returning to their own country.
• Approximately 90% of repatriates leave their
organization within a year of returning to home
base
• Minimizing problems associated with
expatriation
– Providing training and development
– Social functions
– Social support
– Realistic preview/description of the job and
lifestyle
– Job search assistance for spouse
– Continuing education benefits for spouse
(distance learning)
Training and development
• Three-levels of cross-cultural training:
– Information-giving
– Affective approaches (critical incidents, role-
plays)
– Immersion (field experience, visits, simulations)
The importance of internationalizing young
managers early in their careers
Preparing for the experience
Try to find people who are from your country and
have a balanced point of view. Ask them …
• What things were most surprising?
• What was the hardest to adjust to?
• What suggestions do they have
 Improving Acculturation
• Be culturally prepared (social and business
etiquette)
• Learn the language
• Interact with host nationals
• Explore the new culture
• Be culturally sensitive
• Recognize cultural complexities
• Understand yourself and your cultural views
• Be patient and understanding
• Accept (and enjoy) the challenges of
intercultural experiences
Think about
the following!

Share your understanding of Repatriation

 Repatriation

• When they return home, however, their responsibilities are often

significantly diminished.

• In fact, the evidence suggests that only a fraction of them are actually
promoted. It is also not at all uncommon for employees to return home
after a few years to find that there is no position for them in the firm
and that they no longer know anyone who can help them – their
longtime colleagues have moved to different departments to even
different companies. This frequently leaves the repatriated employees
feeling alienated.

• Even when employees are successfully repatriated, their companies

often do not fully utilize the knowledge, understanding, and skills
developed on their assignments. This hurts the employee, of course,
but it also hurts the firm’s chances of utilizing the employee’s
expertise to gain a competitive advantage.
 Repatriation

• Not all companies have career development programs designed for

repatriating employees. Several studies have found that the majority of
companies do not do an effective job of repatriation.

• Some findings:

• Only about one-third of companies had a repatriation plan

• Another third typically don’t begin formal repatriation discussions
until two to six months before the end of an expatriate’s
assignment.
• The remaining third of companies never engage in a repatriation
discussion with their employees.

• Employees often lament that their organizations are vague about

repatriation, their new roles within the company, and their career
progression. In many cases, employees abroad have learned how to
run an entire international operation-or at least significant parts of it.
 The repatriation process

Recruitment and Pre-departure On assignment

Selection training

Re-entry or
reassignment
 Deployment Systems

- Stage 1 – Personnel and Program

Assessment

- Predeparture Assessment
- On-site Assessment
- Continuing System Improvements
- Selection Criteria
 Deployment Systems

- Stage 2 – Personnel Orientation

and Training

- General Culture/Area Orientation

- Language Orientation
- Culture Specific Orientation
- Job Environment/Organisation
Orientation
 Deployment Systems

- Stage 3 – Support Service: On-site

support and monitoring

- Adjustment Survey
- Data analysis and reporting
- Organizational Communication
 Deployment Systems

- Stage 4 – Reacculturation: Reentry

Program
Checking out

Questions?
Final thoughts ...
Evaluation