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Training and management development in the multinational enterprise

Summary: Training and management development in the multinational enterprise

The responsibility for training and development of employees whether in local organisations or the global marketplace essentially belongs to the human resource department. For multinational enterprises (MNEs), training and development takes the centre stage as international firms have to contend with the reality of promoting the skills and competence of their workers in the dispersed subsidiaries. Therefore, underlying argument is that the human capital is essentially an MNE’s most significant source of competitive advantage.

When an MNE manages to effectively train its workforce to make it more competent, it gets to become competitive in the international marketplace (Tiwari 2013). The seven major imperatives for training and development that can be used by MNEs include thinking and acting globally, making sure that the organisation becomes an equidistant global learning organisation, creating global leadership skills, empowering teams to enable a global future, make learning a core competence areas, and reinventing the organisation within the global marketplace.

Regarding the issues linked to training and development of employees with the global context, the instructional model called ADDIE (which is short for analysis, design, development, implementation, and evaluation) can help focus the training on relevant stages of employee development. It is particularly significant because of the diverse languages, cultures, and locations that characterise MNEs. Still, a localised approach for training and development of employees on global basis can also be used. This is particularly significant as cross-cultural differences play a crucial role in designing, developing and implementing training and development for MNEs (Shen et al. 2009). Several issues of training and development into localisation include language, cultures, educational forms, and levels, learning styles, transfer of learning, local training and development laws.

Although many cultural reasons exists that promote a necessity to localise training, there is still a need for MNEs to integrate their training and development activities to attain economies of scale and to ensure that similar standards of training and development is applied across all other subsidiaries. Currently, MNEs are leveraging technological advancement to make training programs accessible virtually to all employees via the internet. In the modern-day, many organisations see a need for employees to work progressively more in teams. This is particularly the case because of the trends of delocalisation, global interconnectedness, and disassembly of work in manufacturing industries.

The increased relevance of using teams in the MNEs has meant that MNEs have to reorganise their training programmes to surround team creation and management. As can be established, the critical success factors for the teams to work effectively include accountability, trust, effective management of conflicts, and commitment. Therefore, as MNES may be forced to use virtual teams or teams that have to link up across wide geographies, they have to set up training programmes that can help encourage productive teamwork.

According to Lynda Gratton, an effective team work in MNEs can be developed and maintained by investing in signature relationships, ensuring collaboration by the top management, establishing a gift culture, encouraging communal felling among the team members, developing leaders who are task-oriented and relationship-oriented, building on heritage relationships, and lastly, ensuring that there is role clarity among the members, as this would avoid duplicating of roles or chaos where some people may take up tasks that do not belong to them.

Global development of leaders across an MNE’s subsidiaries is also crucial. A vital aspect of training and development programme is developing managers or leaders for the MNE who can effectively work in collaboration with global enterprises.

Several theories can be applied to explain the significance of global development. An example includes transformational leadership, which is generally accepted among many factors. By description, it refers to agents of morality who are focused on attaining higher-level. The agent commit time to understand their subordinate in addition to their performance. Therefore, transformation leaders would be expected to depend on the traditional leadership of exhibiting competence, and encouraging other employees to be highly motivated. Still, for MNEs to identify leaders of high potential, they would need to understand that leadership is subject to cultural practices, where different leader are likely to use different approaches based on their cultures. A popular approach that can be used in this regard is the ‘elite cohort’ approach, which is vital for the identification of talent during the recruiting process of the cohorts. An alternative approach is the managed development approach, which contends that the decentralised obligation has its origin in the entire process of development management. Generally, effective global leadership is a vital function of competence and demonstrated interests in global business.

Developing a global mind-set is also crucial when it comes to global business leadership and management. A global mind-set consists of having a high sensitivity to many cultures, employment experiences among many countries. Technically, a global mind-set means the quality of a person being orientated to the world that allows him to conceive the world in ways that others may not. It is critical for leaders, as it allows them to balance off different perspectives to maintain a global perspective. Hence, an employee with a global mind-set has a capacity to manage the global competitiveness, work collaboratively and interact with diverse cultures, manage the complexities associated with global business operations and lastly, managed the capacity for MNEs to be adaptable. They should also have the capacity to manage multicultural teams, uncertainties and personal or the organisation’s global learning.

On the other, an organisation classified as having a global mindset tends to be geocentric in nature and would inherently have the goal of creating an organisation with a business system that is integrated across the globe yet has leadership and an employee base that possess global viewpoint of issues of operating the business in a global environment. Essentially, an HR manager would have to train and prepare international assignees to have a global mindset yet also improve their competence. Yet still, the international assignees would need to be trained on cross-cultural adjustment to enable them adjust to new environments.

Overall, the training of international trainees needs to concentrate on employees’ cognitive competence, behavioural competence, and performance competence.

Reference List

Shen, J, Chandaa, A, D’Nettob, B & Mongaa, M 2009, “Managing diversity through human resource management: an international perspective and conceptual framework,» The International Journal of Human Resource Management, vol 20 no 2, pp.235–251

Tiwari, N 2013, «Managing Human Resources in International Organizations.» Global Journal of Management and Business Studies, vol 3 no 4, pp.355-360