The Importance of Training the Employees - Coursework Example

Business Introduction Expatriate managers overseeing the operations of businesses in foreign countries, experience numerous challenges that come as a result of cultural and linguistic differences. Not only do these managers have to discharge their managerial duties but they also have to supervise employees who speak a different language and are culturally distant. This might in turn pose as a major challenge to them. Therefore, foreign language and cultural training is very crucial especially for businesses that have expanded or want to expand their businesses to foreign or international markets (Celaya & Swift 2006). As businesses expand, they become more interactive (Aijo, 1985), thus effective communication is crucial. For any business to realise success in the foreign market, they have to learn how to communicate effectively with their employees and communication. Language training facilitates effective communication by equipping leaders with the prerequisites of effectively communicating in foreign markets. Expatriates should familiarise themselves with the language of their host countries as this may improve their negotiation ability and overall effectiveness. It can also improve the ability of the manager to access information about the host country’s economic condition and the market. On the other hand, cultural training is an aspect of business training that seeks to sensitise business leaders on the impact of culture in business. Through cultural training, business leaders are able to familiarise themselves with important elements of the foreign culture that may influence the success of their businesses (Aswathappa, 2010). Over time, most companies seeking to expand their business operations into foreign markets have instituted language and cultural training programs in order to equip their expatriate managers with the right skill set and knowledge that will help them to become competitive in foreign markets. Furthermore, the main aim of these cultural training programs is to ensure that organisations are equipped with the necessary intercultural skills so as to be productive in the global marketplace. The right intercultural management skills help businesses to maintain their competitive edge in the foreign market. Culture training has become such an important element in the global marketplace that the course is constantly being developed to suit the changes in this dynamic market. For instance, when the Disney theme park was being opened in Marne-la-Vallee, France, the management of the company had to develop expatriate cross cultural training programs so as to equip its mangers with relevant skills that will enable them to run the business successfully in a foreign country (Luthans, & Doh, 2009).Today, cultural training courses are divided into specific categories. These categories include cultural training designed for business and management, cultural training tailored for public corporations, cultural training meant for human resources, and cultural training courses for relocation. Other important elements of cultural training include cross-cultural communication, cultural diversity training, culture training, intercultural training, intercultural training, expatriate intercultural training, and expatriate cross cultural training programs (Aswathappa, 2010; Luthans, & Doh, 2009). A survey conducted by Ernst &Young established that a lack of proper understanding of foreign markets and customers is one of the leading barriers to realising success in foreign markets (Griffin and Pustay, 2003). Thus companies increasingly invest in cultural and language training. There are numerous training programs with different training philosophies. This in turn makes it difficult for companies to choose which programs are effective. According to Tarique and Caligiuri (2004) it is important for companies to determine which programs will effectively equip expatriates with effective cultural knowledge and language skills. In determining which programs are effective variables such as resources available, the managerial role to be undertaken and the country of destination must be taken into account (Tarique and Caligiuri 2004). As the HR training manager there are several factors that I have to take into account in the formulation of strategies relating to language and cultural training for expatriate managers to be sent to Spain. In the formulation strategies relating to language and cultural training, several issues are bound to emerge. For instance, balancing or prioritising resources in order to ensure that enough attention has been provided for these two aspects of training is very important. As the HR training manager, I will be faced with the task of ensuring that they balance and prioritise their resources in order to maintain efficiency in the course of training. Another major issue will involve deciding on the kind of training program to be used. There are various programs for language and cultural training. Some of these programs include; Programmed Instruction, On-job training, field experiences and language drill tutorials. As a type training program, programmed instruction involves the use of computerized simulation cultural assimilators. This approach is cost-effective but is often viewed as artificial (Celaya & Swift 2006). Fiedler et al. (1971), established that US employees who received cultural assimilator training before working in Honduras became better adjusted to foreign countries and performed their work better (Fiedler et al, 1971). On-job training will involve coaching the managers through practical and actual work experience. This approach is effective since it provides managers a real appreciation for the foreign culture and how it impacts on their day to day management roles. However, this approach can be challenging since it puts extra pressure on the trainee expatriate managers. On the other hand, field experiences periodic stay in the host country so as to enable expatriate managers to familiarise themselves with the culture of the host country. Nevertheless, this training approach is expensive and time consuming. Language drill tutorials involve regular language coaching. This training approach is an effective way of helping expatriate managers to familiarise themselves with the foreign language. However, it is also expensive and time consuming (Celaya & Swift 2006; Swift 2000; Luthans, & Doh, 2009). Moreover, as the HR training manager there are a number of important things to take note of in the process of decision making. One of the important elements in the process of decision making and formulation of a strategy is time. The expatriate managers will be in the international program for five year period. This time period requires an expatriate training program that will remain effective over the course of five years. Another important element to take into account is the commitment that has been made by the company. Within the course of one year, the company has set a goal to purchase other companies. In the strategy, the company will be forced to ensure that the training program chosen aids in this purchase. In choosing a training program for language and culture training, there should be a special focus on business and marketing language. This is important as it will enable the organization to learn how to negotiate in the international business platform. Cultural training will be important in the making important decisions in the course of the purchase. As the business organization draws towards achieving its set goals, it is important that they realize the important cultural aspects that will affect its expansion. These cultural aspects will ensure that the process is maintained at optimum efficiency. Spain is one of the leading countries with regards to fashion. In Europe, the country is a fashion giant and a major player with regards to trendsetting. Due to this, the company will be required to conduct extensive and comprehensive analysis with regards to the fashion industry in Spain. This information will be important with regards to formulating and implementing a strategy to venture into the international market in Spain (Kettaneh 2001; Luthans, & Doh, 2009). After deciding which programs are suitable, the company can choose to outsource for training professionals or handle the training program internally. Outsourcing is important with regards to continuity and risk management. As the firm seeks to grow internationally, there will be a high employee turnover. This high turnover will introduce inconsistency and uncertainty to the processes and operations in the company. Ensuring that the important tasks are outsourced will keep the company in continuous motion and ensure the risk is maintained at low levels. The flexibility of staffing is also maintained at high levels in the course the company chooses to outsource. Outsourcing presents the company with operational control and reduced overhead costs. In the course of outsourcing, the focus is maintained on the core activities and the costs are kept at efficient levels. Outsourcing also comes with efficient saving options. Nevertheless, there are a number of disadvantages attached to this option. The loss of information and confidentiality is one of the greatest risks. The competition in the fashion industry is cut-throat in nature. This option also presents the company with reduced control of the outsourced operations. Outsourcing is also dangerous especially if the professionals hired are working with more than one company. Outsourcing is also disadvantageous as there may be miscommunication, low productivity, legal problems, and hidden costs (Luthans, & Doh 2009; Aswathappa 2010). Handling the training processes internally also provides the company with a number of advantages as well as disadvantages. By handling the different tasks internally, the company will be assured of increased control. There will be no hidden costs as the company chooses to train the managers with regards to language and culture. Managerial controls will be maintained within the company’s internal departments. The confidentiality and security of the company will be assured as a result of this choice. In the event the company chooses to train the managers and have them handle the various tasks, there will be increased flexibility. The various changes that take place in the business environment will be well accounted for and this will ensure that the business processes are maintained at effective levels (Luthans, & Doh 2009; Aswathappa 2010). Industry sector In the clothing industry, there are a number of cultural linguistic requirements. The cultural linguistic requirements represent an important element of success with regards to the goals that have been set by the organization. The company is looking to purchase two smaller outdoor clothing companies. Understanding the cultural linguistic requirements of the clothing industry in Spain will ensure that the company is well-advised with regards to this goal. The information in cultural linguistic requirements is also important as it will enable the company to effectively manage the two companies after the purchase is done. The cultural linguistic requirements are also important as the company seeks to invest in the new markets (Luthans, & Doh 2009; Aswathappa 2010). The clothing industry in Spain is made up of different cultural and linguistic elements. With regards to culture, there are a number of important things a new firm needs to take note as they come into this extensive market (Hofstede, 1991). In the Spain fashion market, size is a very important fashion element. Unlike other fashion markets in the world, the Spanish market has unique specifications for size. What is medium in the international market might be extra large or small in the Spanish fashion market. Size is an important element as it will affect the other processes involved in production and manufacturing (Grosse, 2004). This is a major adjustment and the company will be forced to ensure that they are aligned with the requirements of production and marketing as stipulated by the Spanish fashion industry. Another important element to take note of is the place taken up by the Spanish market with regards to the international fashion industry. Here, information about imports and exports is of great importance. Are the top fashion firms exporting or importing? Who are the major business partners with regards to the Spanish fashion market? What is the business cultural setting with regards to this international market? What are the languages being used in the international transactions? What is the nature of communication between Spain and its local clients? What kind of communication shapes the international interaction between Spain and the international markets? These are some of the questions that will shape the background analysis with regards to the cultural and linguistic setting of the Spanish fashion industry (Ford, Hakansson and Johanson, 1986). The cultural and linguistic analysis will also touch on the local business setting. In this case, the business is analyzed with regards to the local culture and language that is employed in the daily business activities (Swift, 1991). The level of formality in the market is important. This determines the manner in which the businesses and other parties interact in the course of the various business activities. In the clothing industry, suppliers are very important. Ensuring that the company has suppliers that are dependable is very important. Interaction between the business and the various suppliers is established through a specific cultural setting. Understanding this setting is very important. The cultural analysis of the Spanish fashion industry is also concerned with legal interactions. The impact of the legal bodies and the impact these bodies have in the market is of great importance. Understanding the cultural and linguistic setting of that has existed between these two bodies is important. Spain is a major player with regards to the fashion industry in Europe and the world as well. Identifying the cause of the strong points is of this fashion giant is very important. Other important things to analyze include the nature and level of employment within this sector. The role played by Spain’s fashion industry in the local, regional, and international economies is also important to analyze (Dhir, 2004; Kettaneh 2001). Markets With the information about the different strategies at the company’s disposal as well as the cultural and linguistic environments, it is possible to identify a broad strategy through which the training can takes place. The market that the company is looking to venture into is broad. The company should assess its resources so as to establish whether it is in a position to comfortably take on the various tasks on its own (Marschan and Welch and Welch, 1997). The best option for the company is to outsource some of the tasks as it takes on the major processes in the course of addressing the major tasks. The analysis about the two small outdoor companies to purchase should be conducted by the company itself. Here, the company should assess the company with regards to the external and internal settings. The company’s records with respect to the market should be an area of intense analysis. Each of the two companies should be analyzed with regards to how they have faired in the Spanish fashion arena. The manner in which these companies have reacted to the changes in the market setting is also grounds for analysis. The information about this analysis is sensitive in nature and should be done in an in-house setting. The company should outsource the analysis that is concerned with exports and imports (Dhir and Goke-Pariola 2005). This is because there are already professional firms who have been involved with this. In the course of training, the expatriate managers need to be advised with regards to the local business interactions in the Spanish fashion industry. Here, the managers have to learn how to interact with other important business entities as well as with other parties involved in the day to day business activities. The training program employed by the company to train the expatriate managers should also be extensive and detailed (Gill & Butler, 1996). Since the managers will be in the Spanish market for a period of not less than five years, it is important they learn the various cultural details shaping up the Spanish fashion industry. The section of analysis that will involve direct communication should be done by the company’s staff. In the event the company should outsource any of the analytical tasks, the communication between the clients and the outsource firm should be under constant monitoring (Andersen and Rasmussen, 2004, pp. 245). The training program employed by the company should be cost effective. The company should assess its budget and resources so as to ensure it does not bite more than it can chew. Here, the company ought to employ a training program that is within its cost ability. The program chosen will be employed for a long period (Celaya and Swift, 2006, pp. 260). The company should therefore ensure that the program employed for training the expatriate managers is effective in both the long and short terms. Balancing between quality and costs is one of the major issues with regards to choosing a training program. In choosing a training program, the company is supposed to place quality above costs. This translates to a flexible budget. The budget to be adopted for the training purpose should be flexible so as to ensure that quality is not compromised. In choosing a training program for the expatriate managers, the company should ensure that international standards are taken into account (Moller and Wilson, 1995). The company should opt for a training program that adheres to the international standards. A cultural training program that is based in Spain would be preferable due to proximity of the real study market. The expatriate managers should undertake a training program that is based near the heart of the Spanish fashion industry (Conway and Swift 2000). This will enable the managers to learn about the market as they get to assess the various elements that make up this market. This would also help the managers as they would be provided with first hand information about the impact of the Spanish market in the international market arena. In the event the company should choose to employ outsourcing firms for analytical purposes, it is important to ensure that they learn from their practices. For instance, it will be important for the company to have the outsourcing firms working hand in hand with the company’s staff. Outsourcing firms are usually professionals in their various fields and such an opportunity would provide the company with an opportunity to learn. Working in close contact with the outsourcing firms would also enable the company to monitor progress and manage the various costs (Ferney, 1990). This would benefit the company as it would get its money’s worth as well as ensure the quality of the service being provided remains at high standards throughout the entire course (Swift, 1991). Bibliography Aijo, T. 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Luthans, F. & Doh, J., 2009, International management: culture, strategy, and behavior. 7th Ed. McGraw-Hill, New York. Marschan, R., Welch, D., and Welch, L. , 1997, “Language: The Forgotten Factor in Multinational Management”, European Management Journal, Vol. 15 (5), pp. 591-598. Moller, K., and Wilson, D.T. ,1995, Business relationships – An Interaction Perspective in K. Moller and DT Wilson (Eds.) Business Marketing: An Interaction and Network Perspective, Kluwer Academic Publishers, pp. 23-52. Swift, J.S. , 1991, “Foreign Language Ability and International Perspective”, Management Decision, Vol. 35 (4), pp. 319-321. Swift, S., 2000, “Foreign Language Competence: A strategic Issue for UK Businesses?” The International Journal of Applied Management, Vol 1, Issue 1, pp. 37-53. Tarique, I. & Caligiuri, P., 2004, ‘‘Training and development of international staff’’, in Harzing, A.-Wand Van Ruysseveldt, J. (Ed.), International Human Resource Management), 2nd ed.,Sage Publications, London, pp. 283-306 Read More