Handbook of International Human Resource Development: Context, Processes and People 9781781954188, 1781954186

Table of contents :
Front Matter
Copyright
Contents
List of figures
List of tables
List of contributors
1. International HRD: context, processes and people – introduction
PART I: CONTEXT
2. IHRD in MNCs
3. IHRD in international non-governmental organisations, nonprofit and public sector
4. IHRD in small firms and internationalising SMEs
5. IHRD: national cultural and cross‑cultural perspectives
6. IHRD: international perspectives on competence and competencies
7. IHRD: investment in human capital and performance
PART II: PROCESSES
8. Green IHRD, sustainability and environmental issues
9. IHRD and managing knowledge
10. IHRD, offshoring and outsourcing
11. IHRD and lean management
12. IHRD and strategic learning capability
13. IHRD and virtual HRD
14. IHRD, social capital and networking
PART III: PEOPLE DEVELOPMENT PRACTICES
15. IHRD: developing expatriates and inpatriates
16. IHRD and global careers
17. IHRD and leader development
18. IHRD and developing global teams
19. IHRD, diversity and inclusion
20. IHRD and global talent development
PART IV: RESEARCHING IHRD
21. Researching IHRD: context, processes and people
Index

Citation preview

HANDBOOK OF INTERNATIONAL HUMAN RESOURCE DEVELOPMENT

GARAVAN 9781781954171 PRINT.indd 1

22/09/2017 16:31

GARAVAN 9781781954171 PRINT.indd 2

22/09/2017 16:31

Handbook of International Human Resource Development Context, Processes and People

Edited by

Thomas Garavan Edinburgh Napier University, UK

Alma McCarthy National University of Ireland Galway, Ireland

Ronan Carbery University College Cork, Ireland

Cheltenham, UK • Northampton, MA, USA

GARAVAN 9781781954171 PRINT.indd 3

22/09/2017 16:31

© Thomas Garavan, Alma McCarthy and Ronan Carbery 2017 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, ­mechanical or photocopying, recording, or otherwise without the prior ­permission of the publisher. Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA

A catalogue record for this book is available from the British Library Library of Congress Control Number: 2017936586 This book is available electronically in the Business subject collection DOI 10.4337/9781781954188

ISBN 978 1 78195 417 1 (cased) ISBN 978 1 78195 418 8 (eBook)

02

Typeset by Servis Filmsetting Ltd, Stockport, Cheshire

GARAVAN 9781781954171 PRINT.indd 4

22/09/2017 16:31

Contents vii viii ix

List of figures List of tables List of contributors

  1 International HRD: context, processes and people – introduction1 Thomas Garavan, Alma McCarthy and Ronan Carbery PART I  CONTEXT   2 IHRD in MNCs Yanqing Lai, Thomas Garavan and Ronan Carbery   3 IHRD in international non-governmental organisations, nonprofit and public sector Hussain Alhejji and Thomas Garavan   4 IHRD in small firms and internationalising SMEs Ciara T. Nolan   5 IHRD: national cultural and cross-cultural perspectives Yanqing Lai

29

52 76 100

  6 IHRD: international perspectives on competence and competencies129 Jonathan Winterton   7 IHRD: investment in human capital and performance Maura Sheehan and Valerie Shanahan

149

PART II  PROCESSES   8 Green IHRD, sustainability and environmental issues Claire Valentin

171

  9 IHRD and managing knowledge Alexandre Ardichvili

194

v

GARAVAN 9781781954171 PRINT.indd 5

22/09/2017 16:31

vi  Handbook of international human resource development 10 IHRD, offshoring and outsourcing Valerie Anderson and Vijay Pereira

213

11 IHRD and lean management Meera Alagaraja

232

12 IHRD and strategic learning capability Hanna Moon and Wendy E.A. Ruona

249

13 IHRD and virtual HRD Elisabeth E. Bennett and Rochell R. McWhorter

268

14 IHRD, social capital and networking Claire Gubbins

295

PART III  PEOPLE DEVELOPMENT PRACTICES 15 IHRD: developing expatriates and inpatriates Gary N. McLean, Junhee Kim and Oranuch (Jued) Pruetipibultham

315

16 IHRD and global careers Michelle Hammond, Deirdre O’Shea and Jill Pearson

336

17 IHRD and leader development Nicholas Clarke

357

18 IHRD and developing global teams Gary N. McLean and Sewon Kim

377

19 IHRD, diversity and inclusion Julie Gedro

396

20 IHRD and global talent development Andrew Bratton, Thomas Garavan, Norma D’Annunzio-Green and Kirsteen Grant

417

PART IV  RESEARCHING IHRD 21 Researching IHRD: context, processes and people Anthony McDonnell

447

Index

463

GARAVAN 9781781954171 PRINT.indd 6

22/09/2017 16:31

Figures   1.1 A proposed framework for IHRD research 10 10.1 Forms of offshore outsourcing 221 10.2 Offshore outsourcing and IHRD 224 11.1 Factors facilitating lean implementation 235 12.1 Strategic learning process 252 13.1 Knowledge influence model in virtual HRD 272 13.2 Intersectionality of cultural relevance in international VHRD277 13.3 Integrating technology development in HRD 283 20.1 Perspectives on talent and talent management 423

vii

GARAVAN 9781781954171 PRINT.indd 7

22/09/2017 16:31

Tables   3.1 Key characteristics of different types of organisations and IHRD considerations 54   5.1 Cultural typologies 106   5.2 Summary of the significance of national cultural value dimensions in determining HRD policies and practices 117   7.1 Human development index (HDI); human capital investment (HCI) levels and quality: an international comparative perspective156   7.2 World Economic Forum (WEF) overall and educational human capital indices and global innovation rates 157   7.3 T&D policies and organisational performance outcomes: the influence of macro-level context 160   8.1 Green IHRD conceptual framework 175 15.1 Benefits of expatriation and inpatriation 319 15.2 Challenges of expatriation and inpatriation 320 15.3 Major success criteria for expatriate assignments 324 18.1 Summary of global team types, with benefits and shortcomings381 18.2 Virtual team training modules in importance by percentage order 386 19.1 Overview of HR diversity and inclusion activities, and proposed IHRD interventions 413 21.1 Useful references surrounding issues and challenges in undertaking IHRD research 459

viii

GARAVAN 9781781954171 PRINT.indd 8

22/09/2017 16:31

Contributors Meera Alagaraja is Associate Professor of Human Resource Development (HRD) at the University of Louisville. Her areas of scholarship revolve around foundations of HRD with a specific focus on strategic HRD, performance improvement through lean and employee wellbeing. Relying primarily on qualitative methods, her empirical work is focused on bridging scholar and practitioner interests. She has published in Human Resource Development Review, Human Resource Development International, and Human Resource Development Quarterly as well as the European Journal of Training and Development. She has presented to academic and practitioner audiences on a wide range of topics such as leadership development, strategic HRD and employee well-being in several countries. Hussain Alhejji, PhD, is Assistant Professor at the Department of Business and Accounting in Muscat College, Oman and a visiting lecturer at the University of Stirling, UK. He completed his PhD in HRD from the University of Limerick, Ireland. His research focuses on cross-cultural dimensions of diversity training, diversity at work from an institutional perspective, and international HRD. He has authored a number of publications on diversity management and international HRD, and lectures on international HRM, HRD, diversity management, cross-cultural management and research methods. He is a member of the editorial board for The European Journal of Training and Development, and a reviewer for a number of international journals and conferences. Valerie Anderson is Reader in Human Resource Development at Portsmouth Business School, UK. She has extensive HRM and HRD management and consultancy experience in a range of different public and private sector organizations and specializes in research into Business Education as well as HRD; managerial coaching; how professionals (including academic professionals) learn; and organizational issues associated with international and strategic human resource development. Valerie is a committed researcher-practitioner. Until September 2016, she was Director of the Portsmouth Business School Doctorate in Business Administration Programme. She is a co-editor of the leading HRD journal, Human Resource Development Quarterly. Alexandre Ardichvili, PhD, MBA, is Professor and Hellervik Endowed Chair at the University of Minnesota. He is President of the University ix

GARAVAN 9781781954171 PRINT.indd 9

22/09/2017 16:31

x  Handbook of international human resource development Council on Work and Human Resource Education, and past Editor-inChief of Human Resource Development International. Alexandre is the recipient of the Academy of Human Resource Development Outstanding HRD Scholar Award. He has published four books and more than 70 peer-reviewed articles and book chapters on international HRD, leadership development, entrepreneurship, business ethics, and knowledge management. Dr Ardichvili has provided consulting and applied research services to Caterpillar, 3M, Honeywell, the Carlson Companies, ADM, ADC, BI Worldwide, Target, and other organizations. Elisabeth E. Bennett is Associate Teaching Professor in Organizational Leadership Studies at Northeastern University, Boston, MA. Dr Bennett’s research includes virtual human resource development, organizational culture, and informal learning. She co-edited two Advances in Developing Human Resources issues on virtual HRD as well as writing book chapters and articles on the subject. Dr Bennett served on the board of the Academy of Human Resource Development and presently is a member of the editorial boards for Human Resource Development Quarterly, Adult Education Quarterly, Advances in Developing Human Resources, and New Horizons in Adult Education and Human Resource Development. Andrew Bratton is Associate Lecturer in Human Resource Management at Edinburgh Napier University Business School. He received his PhD in Human Resource Management from the University of Strathclyde, Glasgow. He teaches undergraduate, postgraduate and executive education students in Human Resource Management, Managing the Employment Relationship (delivered in Singapore) and MBA Research Methods. His research interests include sustainable workplaces, change management, and employee participation in environmental sustainability. Andrew’s current research centres on knowledge management and the application of lean and agile practices in SMEs. Ronan Carbery is Senior Lecturer in Management at Cork University Business School, University College Cork. He is co-editor of the European Journal of Training and Development and serves as an Editorial Advisory Board member on Human Resource Development Quarterly and Human Resource Development International. He has co-edited a number of leading texts including Human Resource Management: A Concise Introduction (2013), Human Resource Development: A Concise Introduction (2015), and Organisational Behaviour: An Introduction (2016) all published by Palgrave Macmillan. Nicholas Clarke is Professor of Organisational Behaviour at EADA Business School, Barcelona. Nicholas teaches and researches in the

GARAVAN 9781781954171 PRINT.indd 10

22/09/2017 16:31

Contributors  ­xi fields of learning and development and emotional intelligence. He has published extensively in these areas in a number of journals including Human Resource Development International, Management Decision, Journal of Workplace Learning, International Journal of Human Resource Management, Journal of Behavioural Science and International Journal of Training and Development. His research specifically in the areas of emotional intelligence and workplace learning has led to a number of invitations to speak at conferences and public seminars on these topics. He is a visiting professor at Toulouse Business School and the Work and Employment Research Unit at the University of Greenwich. Norma D’Annunzio-Green is Senior lecturer (HRM) at Edinburgh Napier University. Her research interests focus on performance management and talent management for HRM specialists and line managers. She has over 25 publications in academic journals including Personnel Review, Employee Relations, Human Resource Development International and International Journal of Contemporary Hospitality Management. She co-edited Human Resource Management, International Perspectives in Hospitality and Tourism. Norma has served on the Editorial Board of the International Journal of Contemporary Hospitality Management. Her co-edited special edition of Worldwide Hospitality and Tourism Trends on Talent Management has been awarded a Literati Award for Research Excellence and she is currently guest editing an update to this. Thomas Garavan is Research Professor of Leadership, specializing in leadership development, HRD and leadership, CSR and leadership, and cross-cultural leadership in Edinburgh Napier University Business School. He is co-editor of the European Journal of Training and Development and Associate Editor of Personnel Review. He is a member of the Editorial Board of Human Resource Management Journal, Human Resource Development Quarterly, Human Resource Development Review, Advances in Developing Human Resources, and Human Resource Development International. He is the recipient of the Academy of Human Resource Development Outstanding HRD Scholar Award 2013. His research interests include CSR and transformational leadership, cross-cultural dimensions of diversity training, tacit knowledge in manufacturing, international human resource management standards, and human resource management in MNCs. Julie Gedro is Associate Dean and Professor of Business with SUNY Empire State College. Julie holds a BA in Economics and English from the College of William and Mary; an MBA in Information Systems from Kennesaw State University; and a Doctorate of Education in Human Resource Development from the University of Georgia. Julie’s research

GARAVAN 9781781954171 PRINT.indd 11

22/09/2017 16:31

xii  Handbook of international human resource development and teaching includes a focus on critical theory and social justice, and emancipatory non-traditional, accessible, higher education. Kirsteen Grant is Lecturer in Human Resource Management at Edinburgh Napier University. A Chartered Fellow of the Chartered Institute of Personnel and Development (CIPD), she is programme leader for the MSc HRM (CIPD accredited) programme for KPMG. Kirsteen’s research interests centre mainly on professional, responsible and precarious work, (changing) nature and expectations of work, talent management, workplace skills utilization, and high performance working. Kirsteen’s current research is within the UK aviation industry and public services. Claire Gubbins is Associate Professor of Organizational Behaviour and HRM at DCU, Director of DCU’s Executive MBA Programme, Associate Editor for Human Resource Development Quarterly (an SSCI listed journal) and Deputy Director of LINK Research Institute (Knowledge and Learning). Awards for her research include: a Fulbright Scholarship, Career Enhancement Award, Government of Ireland Research Scholarship, a University of Limerick Registrars Scholarship, a US Academy of Human Resource Development (AHRD) finalist award for her dissertation; best paper runner-up for the Alan Moon Memorial prize at the International Conference on HRD Research and Practice; and best paper in track at the Irish Academy of Management. She is published in Human Resource Management (US), Organisation Studies, Journal of Management Inquiry, Human Resource Development Quarterly, Advances in Developing Human Resources, Human Resource Development Review and Journal of European Industrial Training, among others. Michelle Hammond is Assistant Professor of Management at Oakland University. She was previously Senior Lecturer in Organizational Behaviour at the Kemmy Business School at the University of Limerick. She received her MS and PhD in Industrial/Organizational Psychology from Pennsylvania State University. Her research focuses on understanding the influence of leadership on employee well-being at work, including factors such as meaningful work, work–life balance, and creativity and innova­tion. Additionally her research seeks to understand the process of leadership development across multiple domains. She co-authored an award-winning text on leader development entitled An Integrative Theory of Leader Development: Connecting Adult Development, Identity, and Expertise (Routledge, 2008) and has published in journals including Academy of Management Review, Human Resource Management Review, Journal of Vocational Behavior, and Journal of Managerial Psychology among others.

GARAVAN 9781781954171 PRINT.indd 12

22/09/2017 16:31

Contributors  ­xiii Junhee Kim (PhD, Texas A&M University) is an Assistant Professor of Organizational Leadership at Indiana University-Purdue University Indianapolis (IUPUI). He worked for multinational companies in Korea for eight years including two years as a human resource manager. His research and teaching interests revolve around the intersection between leadership and other organizational issues in the international/global context, including those such as competency development, learning organization, creative learning transfer, job attitudes, instructional technology, and program evaluation. Sewon Kim is Associate Professor of Management at State University of New York (SUNY) Empire State, USA. He received his PhD from Texas A&M University. His scholarly work has appeared in leading journals in human resources and organization development-related fields. He is a former recipient of the SUNY Chancellor’s Award for Excellence in Scholarship and Creative Activities as well as dissertation research awards from the ASTD, Academy of HRD, and Emerald/EFMD (highly commended). His teaching and practice interests include global management and leadership development, organizational behavior and change, strategic human capital, coaching and formal mentoring, and research methods. Yanqing Lai recently completed her PhD in Kingston University London, and is currently a Research Assistant in HRM/Leadership subject group in Edinburgh Napier University. Her research interests mainly lie within strategic human resource management, and strategy and performance in SMEs. She has been published in top-tier journals, including Journal of Business Venturing, International Small Business Journal, and Human Resource Management Review. Alma McCarthy is Head of the Department of Management and Senior Lecturer in Management at the National University of Ireland Galway. Her research interests include human resource development, leadership and work–life balance. She has published in peer-reviewed journals such as the International Journal of Human Resource Management, Human Resource Management Review, Advances in Developing Human Resources, and the Journal of Managerial Psychology and has authored a range of books and edited books. She recently served as elected Chair of the Irish Academy of Management. She is on the Editorial Board of Human Resource Development Quarterly, European Journal of Training and Development and the Journal of Managerial Psychology. Anthony McDonnell (PhD, BBS, MCIPD) is Professor of Management at the Cork University Business School, University College Cork, Ireland. Prior to joining UCC, Anthony was Head of the Management Department,

GARAVAN 9781781954171 PRINT.indd 13

22/09/2017 16:31

xiv  Handbook of international human resource development Director of the Centre for Irish Business and Economic Performance and Reader in Management at Queen’s University Belfast. Anthony is currently the (Co)Editor-in-Chief of Human Resource Management Journal and Adjunct Senior Research Fellow at the University of South Australia. His primary research interest and area of expertise is in the areas of talent management and international management, and more specifically, the HRM approaches of MNCs across countries. Gary N. McLean, President, McLean Global Consulting, Inc., teaches in the PhD, HROD, program, NIDA (National Institute for Development Administration) in Thailand and on a master’s program with the Autonomous University of Baja California, Mexico. He was Senior Professor, Texas A&M University, and is Professor Emeritus, University of Minnesota. He taught for six months on the MBA program at the International Islamic University of Malaysia. He was President of the Academy of HRD and the International Management Development Association. He is former editor of several peer-reviewed journals. His research interests focus on organization development and national and international HRD. Rochell R. McWhorter is an Associate Professor of Human Resource Development in the College of Business and Technology at The University of Texas at Tyler. She received her PhD degree in HRD from Texas A&M University. She edited two special issues of the Advances in Developing Human Resources journal and currently serves on their editorial board. She has published numerous journal articles and chapters on technology-facilitated learning, professional virtual conferences, ePortfolios, professional branding, qualitative methods, virtual human resource development, virtual scenario planning and online service-learning. She is the Member Chair for the Virtual HRD SIG for the Academy of HRD. Hanna Moon is a Research Fellow at the Korea Research Institute for Vocational Education and Training (KRIVET). She has conducted government-policy related projects that include Industry Skills Councils, National Competency Standards, and Programme for the International Assessment of Adult Competencies in KRIVET. She has published articles on strategic learning capability, sensemaking, decision-making, and woman’s leadership. Hanna received her PhD from the University of Georgia, with an emphasis on Human Resource and Organization Development (HROD). She serves on The Korean Association of Human Resource Development as a committee member. Ciara T. Nolan is Lecturer in Management, specialising in Human Resource Management, in the College of Business at the Dublin Institute

GARAVAN 9781781954171 PRINT.indd 14

22/09/2017 16:31

Contributors  ­xv of Technology (DIT). She is also a Fellow of the Higher Education Academy (UK). Prior to joining DIT, she worked as a Lecturer in HRM in the Department of Management and Leadership, Ulster University and in Dublin City University Business School. Her main research interests focus on the dynamics of human resource development in small and medium-sized enterprises, with a particular emphasis on professional service firms and the hospitality industry. She has presented at numerous conferences and published book chapters and  academic journal articles in such journals as  The International Journal of Management Reviews, Human Resource Development Quarterly and the Journal of European Industrial Training.  Prior to her academic career, Ciara worked as a human resource manager in the retail and hospitality industries, and as a human resource consultant.  Deirdre O’Shea, C.Psychol.Ps.S.I., is a Lecturer (Above the Bar) at the Kemmy Business School, University of Limerick. Her research interests include psychological interventions, self-regulation, work motivation, emotions, proactive behaviour, occupational health psychology, and voice and silence in the workplace, amongst others. Deirdre has published her research in outlets such as the Journal of Occupational Health Psychology, Journal of Occupational and Organizational Psychology, Applied Psychology: An International Review, Personality and Individual Differences, and Journal of Managerial Psychology, amongst others. In 2015, she co-edited a special issue in the Journal of Occupational and Organisational Psychology on the topic of resource-based interventions in the workplace. Jill Pearson is Lecturer and Course Director for the MSc in Work and Organizational Psychology at the University of Limerick. Jill received her MSc in Human Resource Management from the London School of Economics and her BA in Psychology from the University of Western Ontario, Canada. She has lectured at the London Business School and the London School of Economics. She has also worked as a Consultant to a number of multinationals and as an HR practitioner in both the private and public sectors. Jill was awarded the Government of Ireland Scholarship for her PhD research on “Managerial Career Mobility” which uses event history analysis. Her research interests include objective and subjective career success, student and employee absenteeism, and 360degree feedback. Vijay Pereira is Associate Professor at University of Wollongong, Dubai. He has industry, consultancy and academia experience. He has developed subject specialism in Strategic and International Human Resource Management. Dr Pereira has published and presented over 80 papers

GARAVAN 9781781954171 PRINT.indd 15

22/09/2017 16:31

xvi  Handbook of international human resource development worldwide in international journals such as HRM, JWB, IJHRM, JBR, SI and IJM and at numerous international conferences including the AOM, AIB, BAM and INDAM. He is currently on the international advisory board for the Routledge journal South Asian History and Culture and the FT listed Production and Operations Management Society (POMS) journal and an elected member of the Indian Academy of Management. Oranuch (Jued) Pruetipibultham is a full-time faculty member at the Graduate School of Human Resource Development, National Institute of Development Administration (NIDA), Thailand. Her research interest covers topics relevant to change management, cross-cultural management, expatriate development programmes, and organizational culture. Wendy E.A. Ruona is Associate Professor of Human Resource and Organization Development (HROD) at the University of Georgia. She has been actively working in the field for over 15 years. Wendy’s professional and scholarly work have primarily focused on organization change and effectiveness, strategic HR/HRD, performance improvement, theory and practice issues in HRD, and foundations of HRD (history, philosophy, theory). She served as the OD and Change Track Chair for the AHRD 2009 conference and has extensive editing experience, especially during her tenure as the Editor-in-Chief of Advances in Developing Human Resources. Wendy has also served three terms on the AHRD Board of Directors during the past ten years. Valerie Shanahan is Lecturer in HRM at Dublin City University and is currently on secondment at the Princess Nourah bint Abdulrahman University, Saudi Arabia. Valerie received her MSc in Human Resource Management from the University of Limerick and her Bachelor of Commerce from University College Cork. She has previously taught at the University of Limerick. As well as experience consulting in the areas of management and leadership development, she has almost ten years’ experience lecturing internationally in the area of human resource ­management/development and organizational management. Her research focuses on how human capital can add value to the organization, especially through learning, training and development initiatives. Maura Sheehan is Professor of International Management and Director of the International Centre for Management and Governance Research (ICMGR) at Edinburgh Napier University. She specializes in the relationship between HRM, HRD and organizational performance. Her work also examines factors that contribute to innovation in firms. She is an Associate Editor of Human Resource Development Quarterly (HRDQ) and Journal of Organisational Effectiveness: People and Performance.

GARAVAN 9781781954171 PRINT.indd 16

22/09/2017 16:31

Contributors  ­xvii Claire Valentin is a Senior Lecturer in Human Resource Development at the University of Edinburgh. She is currently Deputy Director for Postgraduate Studies in the Moray House School of Education. Her research and publications focus on the application of critical perspectives to the study and teaching of HRD. This has included HRD and sustainability, discourse perspectives on HRD, employee engagement, and critical pedagogy. She is author of the textbook Enhancing Participant Engagement in the Learning Process (2017, Kogan Page) and editor with John Walton of Human Resource Development: practises and orthodoxies (2014, Palgrave Macmillan). Jonathan Winterton is Professor of Employment and Executive Dean of the Faculty of Business and Law at Taylor’s University in Kuala Lumpur, Malaysia. He has worked extensively on the theory, policy and practice of human capital development, leading the team that developed the competence typology for the European Credit Transfer System for VET. He has also led competence development projects in Turkey, Vietnam and the UK and written a substantial number of academic and policy papers on qualifications and competence. His books include Developing Managerial Competence (Routledge, 1999, with Ruth Winterton) and Trade Union Approaches to Competence Development (Routledge, forthcoming, with Mark Stuart).

GARAVAN 9781781954171 PRINT.indd 17

22/09/2017 16:31

GARAVAN 9781781954171 PRINT.indd 18

22/09/2017 16:31

1. International HRD: context, processes and people – introduction Thomas Garavan, Alma McCarthy and Ronan Carbery

INTRODUCTION International human resource development (IHRD) has recently emerged as a key area of research within the field of HRD (Garavan and Carbery, 2012; Wang and McLean, 2007). Over a period of about ten years, HRD research and practice has shifted its focus from primarily exploring the development of people in domestic organisations towards the development of people in MNCs, international organisations, global not-for-profits, and public sector organisations. It is, however, a field that is in its infancy compared to International Human Resource Management (IHRM) but we have detected evidence of increased research activity and publication outputs in IHRD (Li, 2015; Modisane, 2015; Garavan, McCarthy and Morley, 2016). The research bases lacks cohesion and there is considerable ambiguity concerning the research boundaries of the IHRD construct. The overlap between what constitutes IHRD and related areas such as traditional HRD, cross-cultural management and international management remains blurred. Without some clarity about key constructs, it will prove difficult to explain what IHRD is really about. To date, despite some valuable contributions (Anderson, 2015; Wang and McLean, 2007; Garavan and Carbery, 2012), ambiguity remains. A key objective of this Handbook is to reflect on the nature and scope of IHRD, to advance our understanding of IHRD, and to propose an IHRD research agenda. This Handbook has as a key objective the exploration of insights on key debates within IHRD which will help the field to develop and prosper. In this introduction, we address a number of important issues. First, we briefly chart the landscape of IHRD and engage with four key strands of IHRD scholarship that point to its possible boundaries. Second, we map out a number of contextual drivers that are shaping IHRD as both an academic field of research and a set of organisational practices. We are necessarily selective in the choice of these contextual dimensions and focus on factors highlighted in the various chapter ­contributions in this Handbook. Third, we propose an 1

GARAVAN 9781781954171 PRINT.indd 1

22/09/2017 16:31

2  Handbook of international human resource development overarching framework to conceptualise the terrain of IHRD. Fourth, we summarise the focus of the Handbook and summarise the individual chapters and how they are organised. Finally, we propose a number of priority research areas that will help to give the construct legitimacy as a field of research. We engage in these debates while also acknowledging the emergent, dynamic and constantly evolving nature of the field.

DEFINING THE TERRITORY OF IHRD It is a reasonable assertion to make that the field of research and theorising on IHRD has, to date, developed in a fragmented way borrowing largely from sociology, economics and psychology resulting in a concept that is criticised for being abstract, elusive and lacking a clear identity (Garavan and Carbery, 2012). There is much that is haphazard and opportunistic about its development to date which has not followed a sequential trajectory of development as a concept. Anderson (2015) proposed that the field is quite broad and highlighted the value of Metcalfe and Rees’s (2005) definition which we consider very appropriate for the purposes of this introduction. They proposed that IHRD consists of “processes that address the formulation and implementation of HRD systems, practices and policies at global, societal and organisational levels” (Metcalfe and Rees, 2005, p. 455). Therefore, the limited body of literature emphasises that IHRD is primarily focused on issues that pertain to the development of people in multiple international contexts and these people development processes lead to a range of organisational, economic, social and sustainability outcomes. IHRD scholarship is difficult to compartmentalise or categorise. However, there is evidence of multiple notions of IHRD proposed in the literature. Therefore, consistent with theoretical contributions by Anderson (2015), Garavan and Carbery (2012) and Wang and McLean (2007), we focus on four strands of IHRD conceptualisation that are relatively independent of one another: global HRD, national HRD, HRD in the context of internationalising organisations, and comparative/ cross-cultural HRD. Global HRD The first strand focuses on global HRD. The notion of global HRD is relatively new to the literature (Garavan, McCarthy and Morley, 2016). It primarily draws its legitimacy from the need to address people development issues on a global scale. Therefore, a global HRD perspective can be found in debates on global mobility, and global talent development

GARAVAN 9781781954171 PRINT.indd 2

22/09/2017 16:31

International HRD: introduction  ­3 (Kim and McLean, 2012; Cascio, 2014). Labour markets are increasingly viewed as global in nature (Morley et al., 2015) and, therefore, organisations, irrespective of location or region, require a well-developed and highly skilled talent pool. Global mobility is now a major theme in the literature (Collings, 2014) and the evidence indicates that many emerging and developing economies experience difficulties in ensuring a strong mix of appropriately skilled employees in their national pool of labour. The global HRD strand emphasises the design of HRD systems, policies and practices that consider the domestic, regional, international and global level when considering people development issues. It highlights how global organisations use HRD to develop an employer brand that operates and is effective across all of the organisation’s locations and the need to develop HRD systems that fit the globalising organisation. Global HRD has important resonances for the way in which the field thinks about the dominance to date of particular perspectives or notions of HRD. For example, the USA and Western European perspectives have to date dominated the literature with limited consideration given to Asia centric and African-Middle East perspectives (Chermack, Lynham and Ruona, 2003; Garavan, McCarthy and Morley, 2016). The global strand of HRD calls attention to outcomes beyond economic ones and perspectives that are solely managerialist in focus. This strand, consistent with the definition proposed by Metcalfe and Rees (2005), highlights the social role for HRD. Therefore, global HRD has a major role to play in strengthening state institutions, in dealing with major societal issues such as poverty and corruption, and in enhancing the work of worldwide nongovernmental agencies (Berman, 2015). The global HRD scholarship strand brings into focus the need to consider a variety of sustainability and societal outcomes and has a particular concern with people sustainability (Thite, 2013; Kuchinke, 2010; Peterson, 1997). National HRD The second scholarship strand that comes within the boundaries of IHRD is national HRD. This strand of scholarship has experienced significant growth and expansion, notwithstanding the fact that there has been a lack of attention given to its theoretical development and empirical investigation. NHRD primarily focuses on skill capability and human capacity building of countries, the development of national-level policies, and national and regional institutions that develop and implement HRD policy (Anderson, 2015). The majority of conceptualisation and theory development has focused on stakeholders at multiple levels within a country and the role of vocational education and training systems and

GARAVAN 9781781954171 PRINT.indd 3

22/09/2017 16:31

4  Handbook of international human resource development other capability development mechanisms explored through a national lens (Busch, 2012; Wang and McLean, 2007). NHRD as a strand of IHRD scholarship focuses on how countries utilise skills formation processes, human capability development initiatives and the role of labour market institutions, national industrial relations systems, and other VET systems to enhance national human and social capital (Alagaraja and Wang, 2012; Stewart and Sambrook, 2012). To date, it is the most vibrant strand of research, however, it is currently under-theorised and methodologically nascent. The literature has focused on the description and analysis of individual countries and there is some evidence of efforts to develop categorisations and typologies of different countries in terms of their approaches to NHRD (Ahn and McLean, 2008). There is also significant development of models or frameworks that highlight important micro, meso and macro level factors that influence or drive NHRD in individual countries. Comparative and Cross-cultural HRD The third strand of IHRD scholarship focuses on the institutional and cultural context of IHRD. This strand investigates the influence of crosscultural and cross-institutional factors. Cseh, Davis and Khilji (2013) argue that the comparative component of HRD is underdeveloped and has not fully or comprehensively engaged in debates about how institutional differences explain convergence and divergence in approaches to IHRD. To date, there is an implicit assumption that the majority of research findings on HRD will apply in all circumstances and are generalisable to different contexts outside of those included in empirical investigations. Therefore, the roles of governments and regulations have received very limited attention in the context of IHRD. Some debates within the IHRM field propose that globalisation will lead to universal approaches to IHRM (Björkman, 2003; Rowley and Benson, 2002), however, there is limited insight within IHRD research to say whether this is the case or not for IHRD. Proponents of convergence suggest that the potential homogenisation of institutions, systems, policies and practices will lead to similar IHRD approaches (for example, Morley, 2007). Proponents of divergence suggest that due to institutional characteristics, approaches to IHRD will be highly heterogeneous because nations are slow to change and evolve (Branson, 2001; Pudelko, 2006; Whitley, 2000). Rosenzweig and Nohria (1994) proposed that HRM is one of the most localised of management practices. Therefore, it could be argued that HRD, as one component of HRM, will be different depending on the size of the country, its stage of economic development, whether it is

GARAVAN 9781781954171 PRINT.indd 4

22/09/2017 16:31

International HRD: introduction  ­5 monolingual or multilingual and how effectively established the country is politically. Cross-cultural perspectives focus on the extent to which national cultural differences in terms of traditions, values and attitudes influence HRD. Studies have, to date, tended to utilise the Hofstede framework to investigate issues central to IHRD such as cross-cultural competencies, cross-cultural leadership and learning styles (Peterson and Castro 2006; Hee Kim and Callahan, 2013). McLean (2016) is critical of the over-focus on the Hofstede (1980) framework and the over-focus on the country as the unit of analysis. As a concept, culture crosses national boundaries and can be significantly impacted by regional influences. Furthermore, within individual countries, there can be significant variations in culture that are not effectively captured using established national country level culture scales. There are, therefore, difficulties associated with the investigation of cross-cultural perspectives on IHRD and there are many gaps which remain in our understanding of this aspect of the field. Internationalising Organisations and Expatriates The majority of research within the internationalising organisations and expatriate scholarship strand has focused on the development issues related to expatriates and other categories of employees who undertake cross-border assignments (Anderson, 2015). In comparison, the internationalising organisation component of this scholarship strand is very nascent and fragmented. Within IHRM research, the primary focus of scholarship is on the MNC (Björkman and Welch, 2015; Pudelko, Reiche and Carr, 2015). However, within IHRD, the MNC has received significantly less attention and studies on international organisations other than MNCs is effectively absent. IHRD, given it social dimension, is also interested in other types of internationalising organisations that have primarily a social or humanitarian focus. Examples of international organisations that are of interest to IHRD, and in which people development issues are a concern, include non-governmental organisations, international organisations that have a worldwide reach and inter-governmental organisations (Lewis, 2009). Based on the four IHRD scholarship strands, it is possible to reach a number of tentative conclusions about the scope and boundaries of IHRD research. First, the construct is nascent in terms of theoretical and empirical development and is, therefore, quite fragmented which leads to some confusion about what it stands for and how it is distinct from other similar concepts such as IHRM and cross-cultural management. Second, across the four strands the focus of IHRD moves beyond the o ­ rganisation

GARAVAN 9781781954171 PRINT.indd 5

22/09/2017 16:31

6  Handbook of international human resource development to consider communities and countries and the people development issues that arise. This is an important differentiator that sets IHRD apart from IHRM where the unit of analysis to date has tended to be the MNC. Third, IHRD has priorities and concerns that include, but are not exclusively focused on, performative and managerialist issues but also include societal, sustainability and environmental issues. Therefore, we conclude that IHRD has as its primary focus the development of people in multiple country and organisational contexts and in understanding how IHRD systems, policies and practices can lead to economic, societal and sustainability outcomes.

THE CONTEXTUAL DRIVERS OF IHRD The context within which IHRD operates is highly dynamic and complex. It is subject to an array of influences including globalisation, technological developments, growth in the service and knowledge economy, and challenges and opportunities presented by diversity. This set of contextual drivers is, by necessity, highly selective. However, they inform some of the key issues debated in the contributions in this Handbook. They currently impact the growth trajectory of the field as a body of research and practice and are likely to do so into the future. We argue that these contextual dimensions will influence the types of IHRD research questions that are investigated, shape the goals that countries and organisations pursue, and impact the IHRD systems, policies and practices that are implemented. Globalisation and IHRD Globalisation is defined as a contextual element that impacts countries and organisations (commercial and non-commercial) operating on a global or international scale (Stone et al., 2015). Globalisation represents one of the most significant elements of context that shapes IHRD in countries and organisations. Dimensions of globalisation that are highlighted and frequently discussed include the challenges arising from cross-cultural differences, social, political and institutional differences, and differences in language. Therefore, countries and organisations have to consider how they approach the development of people and the implementation of IHRD in different locations. Issues related to the influence of globalisation are nascent in the context of IHRD across the four strands. However, Sparrow (2009) has argued that the problems of globalisation increasingly become more embedded in countries and organisations and shape the way in which people are developed in an international context. Globalisation

GARAVAN 9781781954171 PRINT.indd 6

22/09/2017 16:31

International HRD: introduction  ­7 presents both challenges and opportunities to countries and organisations that operate on a global scale. These include, but are not confined to, issues such as international competitiveness, country reputation, the promotion of diversity, CSR and sustainability and in the case of MNCs opportunities to develop new products and services and enter new markets (Stone et al., 2015). Information Technology and IHRD Technology, and in particular information technology, has emerged as an important driver of change in the way IHRD is undertaken (Strohmeier and Kabst, 2009). In the context of IHRD, it has led to the emergence of e-learning, the development of global learning management systems, and it has transformed how IHRD interacts with its customers and stakeholders (Salas, Sims and Burke, 2005). The use of technology in IHRD and its effectiveness is contested with both researchers and practitioners questioning whether technology-driven training systems such as online simulations, e-learning modules, and video conferencing are effective (Dulebohn and Johnson, 2013). Criticisms most frequently levelled at technologydriven IHRD include the lack of opportunities for learner engagement, the inflexibility of e-learning, the lack of face-to-face interaction, fewer opportunities for feedback and limited applications beyond knowledge-based objectives. The use of technology to enable or facilitate IHRD is insufficiently understood and researched. However, it is generally acknowledged that information technology will continue to change the way organisations practice IHRD into the future (Dineen and Allen, 2013). The Knowledge Economy and IHRD Significant changes have occurred within the global economy over the past decade. Two of the most significant changes are the shift towards the knowledge economy and the growth in the use of offshoring and outsourcing. The knowledge-based economy is a relatively loose concept but it generally emphasises the provision of services and the leveraging of technology to add value (Anderson and Corley, 2003). It is particularly significant to IHRD and the contribution that it makes to the achievement of country and organisational goals. Increasingly, IHRD practices will be used to help countries become knowledge economies and help organisations to broaden their skill bases, facilitate the sharing of tacit knowledge, and enhance the retention of employees with appropriate skill sets (Schuler, Budhwar and Florkowski, 2002). It presents significant challenges to IHRD to utilise new models of skill development and the

GARAVAN 9781781954171 PRINT.indd 7

22/09/2017 16:31

8  Handbook of international human resource development use of practices to enhance global mobility. It also provides opportunities for IHRD to reposition itself on national and organisational agendas and emphasise its criticality to the achievement of national and organisational goals. Both offshoring and outsourcing have emerged hand-in-hand as new ways of doing business (Anderson, 2015; Contractor et al., 2010). They are a prominent feature of globalisation and they occur in different manifestations including tactical, strategic and transformational approaches (Anderson, 2015). They highlight many research and practice challenges for IHRD at both country and organisation levels. They bring to the fore issues related to cross-business knowledge sharing, interorganisational learning, cross-cultural issues, and the importance of talent development. Diversity and IHRD Issues related to diversity have emerged as a key contextual influence and, as a consequence, both countries and organisations are concerned to effectively use IHRD practices to meet the needs of increasingly diverse labour pools and workforces. Key aspects of workplace diversity include the priorities and values of different generations of employees, gender, ethnicity and sexual orientation (Twenge et al., 2010). At the level of the country, the labour market is increasingly made up of individuals of multiple ethnicities, ages and generational differences. Evidence suggests that generational differences are increasingly challenging for organisations due to differences in values, attitudes and behaviours (Cennamo and Gardner, 2008; Deloitte, 2014). These generations give differing emphases to IHRD with the result that organisations will increasingly focus on greater customisation and individualisation of practices and develop ‘cafeteria systems’ where employees can select development practices suitable to their values, preferences and needs. Other dimensions of diversity that have come front and central include racial and ethnic diversity in the workforce (Stone, Stone-Romero and Lukaszewski, 2007), the employment of LGBT employees (Paisley and Tayar, 2016; Shrader, 2016) and age diversity (Boehm, Kunze and Bruch, 2014; De Meulenaere, Boone and Buyl, 2016; Li et al., 2011). These different forms of diversity are challenging for IHRD because they require national institutions and organisations to modify and reposition their IHRD practices to meet the requirements of an increasingly diverse labour market and workforce. The traditional approach where a set of homogeneous practices could be applied to the whole workforce is no longer valid. We focused here on a small but significant number of factors that currently shape and will continue to shape IHRD. These four dimensions surface in the various contributions found

GARAVAN 9781781954171 PRINT.indd 8

22/09/2017 16:31

International HRD: introduction  ­9 in this Handbook and they play an important role in shaping both the research and practice agenda for IHRD.

A FRAMEWORK FOR IHRD RESEARCH To date, a small number of contributions have identified the research issues that pertain to IHRD, however, there is little by way of an integrative or conceptual framework that unifies the various strands and adequately maps out the boundaries and territory. Our aim here is to propose a framework that captures the four strands we have identified and point to significant research opportunities for the IHRD field. We are conscious that IHRD takes a significantly broader remit than IHRM: IHRM research has primarily focused on the MNC (De Cieri and Dowling, 2006) whereas IHRD focuses on nations, regions, communities and organisations that pursue a multiplicity of economic and social goals (Garavan, McCarthy and Morley, 2016). Our framework consists of four levels of analysis. The first level of analysis focuses on the country (comprised of national institutions, legal systems, skill development systems, and economic and social conditions that influence national level skill development). The second level focuses on internationalising organisations and encompasses the diversity of international organisations to which IHRD practices have application. The third level focuses on the country unit or operation. Given the diversity of internationalising organisations, this may include subsidiaries in the case of MNCs, inter-organisational alliances and other types of entity or structure required to function effectively in the host country. The fourth level focuses on the individual and includes employees and other types of workers as well as the family. Our framework highlights four dimensions from left to right in Figure 1.1. These are: (1) influencing factors which are the antecedents and contextual factors that shape IHRD at each level; (2) IHRD, processes, policies and practices including the roles and delivery mechanisms used to achieve IHRD goals; (3) proximal outcomes which are defined as more immediate outcomes of IHRD; and (4) distal outcomes which are more long-term outcomes of IHRD. Figure 1.1 presents the multi-level framework and suggests content issues relevant to each level of analysis. The Country Level of Analysis The country level of analysis focuses on the NHRD strand of IHRD. The inclusion of the country level of analysis in conceptualisations of IHRD is necessary given the growth in this area of scholarship and debates about the

GARAVAN 9781781954171 PRINT.indd 9

22/09/2017 16:31

10  Handbook of international human resource development Influencing Factors Level of Analysis

Country

Internationalising Organisations

Host Country Unit/Operation

Individual

IHRD Processes, Policies and Practices

Proximal Outcomes

Distal Outcomes

• Globalisation • Natural economics and social conditions • National institutions and legislative frameworks • VET and skill-building infrastructure

• VET systems • National skill enhancing programmes • Targeted HRD programmes

• National human capital development • Increased national social capital development • Increased labour participation and employment

• Industry development • National economic performance • National social performance • Enhanced country reputation • Capacity to attract business and talent

• Globalisation, technology and diversity • Global ownership and coordination of organisational goals • Organisations’ global strategies • Organisational structural characteristics

• IHRD structures, roles and policy development and implementation processes • IHRD practice configuration • Different employee groups • Use of technology to deliver IHRD

• Enhanced human and social capital • Achievement of organisational goals • Enhanced shared values and beliefs • Enhanced organisational legitimacy • More effective control and coordination

• Enhanced organisational performance • Enhanced social performance • Enhanced resource utilisation

• International experience of unit/operation • Host country infrastructure • Governance and ownership of organisations • Type of organisations • Permanence of organisation • Level of independence from HQ • Types of employment relationships

• IHRD structures and roles in host country unit/operation • Local IHRD capabilities • Customisation and localisation of IHRD policies and practices

• Knowledge sharing and transfer • Local unit/operation effectiveness • Legitimacy of local unit/operation • Effective control and coordination of IHRD

• Financial performance • Social performance • Effective resource utilisation • Enhanced innovation, flexibility and agility

• Employee family context • Labour market and employment opportunities • International experience, education and training • Employee category • Career aspirations and motivations • Personal characteristics and tenure

• Customisation and individualisation of IHRD policies and practices • Employee involvement in design and implementation of IHRD practices

• Perceptions of value of IHRD practices • Human and social capital development • Employment opportunities • International adjustment and cross-cultural sensitivity

• Employment outcomes • Job performance • Global career mobility

Figure 1.1  A proposed framework for IHRD research role of NHRD in developing a country’s human and social capital. First, there are a number of theoretical perspectives that researchers could utilise to provide a strong theoretical foundation for empirical investigations. We suggest that researchers make use of economic development theory (Bauer, 1984; Harvey, 1985; Sen, 1985, 1999; Stiglitz, 1998), resource dependency theory (Boyd, 1990; Pfeffer and Salancik, 1978), stakeholder theory (Freeman,1984; Friedman and Miles, 2002; Mitchell, Agle and Wood, 1997), institutional theory (Meyer and Rowan, 1977; Scott, 2004;

GARAVAN 9781781954171 PRINT.indd 10

22/09/2017 16:31

International HRD: introduction  ­11 2008) and ecological perspectives (Bronfenbrenner, 1979) to investigate key issues around the dynamics and operation of NHRD. There are many research gaps that researchers can explore. Of particular significance are the influences of country differences in approaches to NHRD. These differences relate to the influence of economic development stage, the role of national legal and institutional characteristics, the sophistication of national skill development systems and the influence of industrial relations systems. Researchers can make greater use of institutional perspectives, for example, to explain differences in country level differences in the development of skills and competitiveness. Another important but unanswered question in the context of the country level of analysis concerns the inter-relationships between countries and their regions and communities. Significant differences are likely to be found across these domains in terms of the types of human and social capital outcomes that are generated. There are significant gaps in our understanding of the types in IHRD practices and policy interventions that are appropriate at the country level. What practices and policies are most appropriate in different development contexts such as underdeveloped economies, emerging economies and highly developed economies? One of the most significant gaps in the literature concerns the proximal and distal outcomes of NHRD. How, for example, does NHRD lead to country level human capital outcomes and employment? The links between the proximal and distal outcomes such as economic performance, social performance and enhanced country reputation are also under-explored in the IHRD field. Internationalising Organisations Level of Analysis The internationalising organisations level of analysis is sufficiently broad to encompass the types of organisations within which IHRD practices and policies are implemented. These include INGOs, internationalising SMEs, MNCs, international joint ventures, global public organisations, and other international organisations with a social remit. These organisations will differ greatly in their global or headquarter IHRD policies and practices and the characteristics of their IHRD departments. They will also vary in the amount of internationalising experience they have. The stage of internationalisation will influence the role, function and activities of IHRD (Sparrow, Brewster and Harris, 2004). The strategy that these organisations pursue will impact on how people are developed and the skills they require to realise their strategic goals. Organisational structural characteristics will influence IHRD policy and practice including how global or localised people development practices are and their concern with coordination and control mechanisms.

GARAVAN 9781781954171 PRINT.indd 11

22/09/2017 16:31

12  Handbook of international human resource development Research at this level can be grounded in a number of theoretical perspectives including the resource-based view (Barney, 1991; Wernerfelt, 1984; 1995), the knowledge-based view (Grant, 1996; Nonaka and Takeuchi, 1995), human capital theory (Becker, 1964; Mincer, 1993) and institutional theory (Meyer and Rowan, 1977; Scott, 2004; 2008). There are major gaps in our understanding of how IHRD is structured and the types of policies and practices that are used in the different types on internationalising organisations outlined above. There are also major gaps in knowledge concerning how accountability and responsibility for IHRD is distributed, the kinds of roles that are performed by IHRD and the specific role of the global IHRD function. Other dimensions of IHRD processes, policies and practices that need investigation include how IHRD strategies, policies and practices are developed and implemented, the types of frameworks that are used, and the way in which IHRD professionals build social capital and knowledge resources of value to the internationalising organisation. There is scope to conduct research on both the proximal and distal outcomes of IHRD at the level of the internationalising organisation. Questions that can be investigated include: How does IHRD in these different organisational contexts enhance organisational, human and social capital and facilitate the achievement of organisational goals? How does IHRD facilitate knowledge sharing and knowledge transfer across units of the internationalising organisation? The most challenging and under-researched area concerns the influence of IHRD on distal outcomes such as financial performance, social performance, global efficiency, flexibility and adaptability and responsiveness to global crises. The Host Country Unit/Location Level of Analysis The host country context of internationalising organisations will influence how they are structured, the types of governance mechanisms in place and how effectively the organisation operates within government constraints, legal requirements or political dynamics and uncertainty. The nature of the local operation, and whether it is permanent or temporary, is important as a contextual factor influencing IHRD policy and practice. However, we have limited understanding of how these factors and characteristics shape local IHRD provision and the types and effectiveness of practices that are implemented. Researchers can draw on a range of theoretical frameworks to better understand these issues including social network theory (Burt, 1992, 1997; Gubbins and Garavan, 2009; Lin, 1999; Wasserman and Faust, 1994), institutional theory (Meyer and Rowan, 1977; Scott, 2004; 2008), structuration theory (Giddens, 1984; Parker, 2000), stakeholder theory (Freeman,1984; Friedman and Miles, 2002;

GARAVAN 9781781954171 PRINT.indd 12

22/09/2017 16:31

International HRD: introduction  ­13 Mitchell, Agle and Wood, 1997) and the RBV (Barney, 1991; Wernerfelt, 1984; 1995). Concepts that are of value here include learning networks, employer brand, and organisational learning processes. There is scope to understand how different types of internationalising organisations implement IHRD practices locally. How similar are local HRD practices to practices at global headquarters? How are they localised to suit the host country conditions? How does the temporary or permanent nature of the organisation influence implementation? How effectively are IHRD practices transferred to foreign locations? What roles are performed by IHRD specialists at local or host country level? What types of partnering and outsourcing arrangements are used to deliver IHRD? These represent a sample of the many unanswered questions in the IHRD field. Our framework suggests a variety of proximal and distal outcomes that need to be researched. Proximal outcomes include local effectiveness of the unit or location, the enhanced legitimacy and efficiency of the unit and the extent of effective control and coordination of local and global IHRD processes. Distal outcomes that can be investigated include unit financial performance, social performance of the local unit, the effectiveness of resource utilisation and enhanced flexibility, innovation and agility. The Individual Level of Analysis The individual level of analysis focuses on the totality of employees within and associated with the internationalising organisation. Given the diversity of internationalising organisations that come within the remit of IHRD we take a necessarily broad view. According to Björkman and Welch (2015), any individual-level analysis should include members of the top management team, international assignees (traditional expatriates and inpatriates, self-initiated, short-term, business travellers), those employed by the organisation in its home country, local affiliate employees, accompanying partners and family members, and those working in cross-border teams. The individual level of analysis should include individuals in the labour market, those employed in partner organisations, those working in cross-border partnerships, those working in both home and host country organisations, those classified as international travellers and those on short-term assignments. Additionally, we include global careers, leader development, and global talent development as individual-focused IHRD practices. Researchers can draw on a number of theoretical frameworks here including psychological contract theory (Conway and Briner, 2005; Rousseau, 1989, 1998), career theory (Ibarra, 2003), social network theory (Burt, 1992, 1997; Gubbins and Garavan, 2009; Lin, 1999; Wasserman

GARAVAN 9781781954171 PRINT.indd 13

22/09/2017 16:31

14  Handbook of international human resource development and Faust, 1994), human capital theory (Becker, 1964; Mincer, 1993), and agency theory (Eisenhardt, 1989; Jensen and Meckling, 1976)). A variety of influencing factors merit investigation at the individual level of analysis including how individuals form different country context values regarding training, their participation in training and education at a national level as well as within organisations. In the context of internationalising organisations and host country unit scenarios, researchers can investigate individual attitudes to IHRD practices and the types of IHRD practices that individuals find most beneficial. There is scope to understand the mix of IHRD practices that internationalising organisations implement to address individual needs and the ways in which these practices are perceived. Researchers should investigate specific individual level proximal outcomes including enhanced employment and employability, human and social capital development, the extent of international adjustment and career satisfaction derived from IHRD. Distal outcomes that can be investigated include the extent of global career mobility, job performance and career progression.

CHAPTER SUMMARIES This Handbook brings together a wide range of contributions to explore IHRD. For the purposes of clarity, we structure the handbook into four sections: (1) the context of IHRD, (2) IHRD processes, (3) IHRD practices and (4) researching IHRD. Part I of the Handbook explores a number of contextual issues and contexts in which IHRD is practiced. The contexts in which we explore IHRD include MNCs, international non-governmental organisations, not-for-profit organisations, public sector organisations and internationalising SMEs. In Chapter 2, Lai, Garavan and Carbery explore the IHRD issues that arise in MNCs. The chapter discusses issues that arise at global headquarters and host country unit levels. It draws on RBV theory and the behavioural perspectives and discusses the complexities of the divergence and convergence debate in the context of IHRD. The chapter highlights issues related to the contradictory pressures towards global integration and local differentiation. The authors provide a discussion of the development of IHRD strategies in MNCs and issues of implementation. They conclude the chapter by drawing out a research agenda and highlight key issues for IHRD practice. In Chapter 3, Alhejji and Garavan explore IHRD in international nongovernmental organisations, not-for-profit organisations and international public sector organisations. These organisations primarily have social and

GARAVAN 9781781954171 PRINT.indd 14

22/09/2017 16:31

International HRD: introduction  ­15 humanitarian goals and operate on a worldwide basis. They implement IHRD policies and practices in the context of significant resource constraints and, due to their structural characteristics, they encounter unique formulation and implementation challenges. The chapter concludes by exploring the differences between these organisations from an IHRD perspective and offers research and practice suggestions. In Chapter 4, Nolan highlights the unique complexities that arise in respect of IHRD in internationalising SMEs. She argues that IHRD can play an important role in helping SMEs to internationalise and that internationalising SMEs have unique challenges in respect of resources and infrastructure to implement IHRD. The chapter concludes with calls for more research on the challenges of implementing IHRD in internationalising SMEs and the need for stronger theorising and use of more robust methodologies. The three remaining chapters in Part I focus on important cross-cultural, institutional and cross-country differences that have relevance to IHRD. In Chapter 5, Lai explores the role of national culture and crosscultural differences in explaining IHRD processes, policies and practices. The chapter specifically highlights how different typologies and categories of national culture shape notions about what constitutes NHRD and how these cultural dimensions shape the types of practices that are implemented and the ways in which IHRD policies are developed and implemented. In Chapter 6, Winterton discusses international perspectives on competence and competencies in the context of IHRD. The chapter engages with key debates around the definition of competence and competencies internationally and explores national and regional differences in how notions of competence and competencies are discussed, valued and conceptualised. The chapter concludes with a discussion of regional influences and differences and explains why these debates are more prevalent in specific geographic areas. In Chapter 7, Sheehan and Shanahan explore national differences in investment in human capital and the impact of this investment on both country and organisational performance. They specifically explore human capital investment at macro and micro levels. This macro–micro levels perspective is valuable because it highlights that IHRD can make a difference for both countries and organisations. The chapter concludes with a discussion of opportunities for future research as well as drawing out IHRD practice implications for countries and organisations. Part II of the Handbook focuses on processes that are important to IHRD. Processes in this context focus on the actions taken by organisations to globalise IHRD practices. There is little by way of insights on these processes in the IHRD context available in the literature to date.

GARAVAN 9781781954171 PRINT.indd 15

22/09/2017 16:31

16  Handbook of international human resource development Adopting Monks et al.’s (2013) line of argument about the link between HRM processes, philosophy and practice, we argue that processes are used to promote IHRD philosophy and to enact IHRD practice. These process dimensions play a crucial role in determining both IHRD practices and outcomes. Sparrow (2009), likewise, draws attention to the role of processes arguing that firm-level globalisation processes are key to understanding how various practices operate across geographical boundaries in international organisations. We highlight a variety of processes that can integrate existing resources such as knowledge management, lean management and virtual HRD with their focus on better use of existing resources. As well as the processes used by organisations to better manage existing resources, it is also important to explore how international organ­ isations manage strategic learning and social capital and networking as processes which can act as sources of competitive advantage to identify new opportunities. In Chapter 8, Valentin discusses the construct of green IHRD and draws out the key features of green IHRD using three orientations: tactical green IHRD; strategic green IHRD; and transformational green IHRD. She argues that green IHRD presents an opportunity for IHRD to build on its strengths in supporting individual and organisational development, learning and change. IHRD is well placed to take a leadership role in sustainability by leveraging the tenets of learning inherent in HRD. Moving from a tactical to transformational perspective on green IHRD will not only ensure greater organisational relevance for IHRD, but also help address the ethical tensions inherent in the HRD profession emanating from the ‘people versus performance’ or ‘organisation versus environment’ dichotomies. Knowledge management, knowledge creation and knowledge transfer have become central issues for organisational leaders and IHRD professionals. In Chapter 9, Ardichvili examines how knowledge transfer and knowledge co-creation and sharing impact knowledge management in international organisational settings. He discusses some of the main IHRD knowledge management issues in the context of knowledge transfer and creation between subsidiaries and parent organisations; transfer among subsidiaries; and transfer among business organisations and their customers, suppliers, and business network partners. International organisations need to ensure that HRD practitioners create formal IHRD mechanisms and procedures, including training and development, establishment of incentive mechanisms, and development of communication strategies, both for knowledge transmission and for recognition of the importance of transferred knowledge to ensure knowledge transfer occurs. In Chapter 10, Anderson and Pereira explore the growing trend of

GARAVAN 9781781954171 PRINT.indd 16

22/09/2017 16:31

International HRD: introduction  ­17 offshoring and outsourcing in international organisations in the context of IHRD. Offshoring and outsourcing have important consequences for IHRD practice, policy and strategy. They present an integrated conceptual model which underlines the importance of strategic understanding by HRD practitioners of the purpose and form of outsourcing agreements as there are different implications for IHRD. The implications of offshoring and outsourcing for training and development, organisation development, knowledge transfer and organisational culture in the IHRD context are explored. The HRD implications of the different forms of offshore outsourcing are set out and the implications for national HRD and IHRD are discussed and areas for further research are identified. Lean management is an organisational process which has gained much attention over the past decade for its potential to identify opportunities for more efficient and effective organisational functioning. In Chapter 11, Alagaraja discusses the importance of integrating IHRD in lean as a way to enhance and sustain flexibility, adaptiveness and responsiveness in organisations. She offers an integrative perspective on the factors that facilitate the adoption, implementation and sustainability of lean implementation in organisations as well as discussing the relevance of these factors for enhancing the strategic value of IHRD. The chapter reaches the conclusion that there is much greater scope for IHRD involvement in lean implementation which would benefit from further scrutiny. In Chapter 12, Moon and Ruona focus on an important IHRD process which they call strategic learning capacity. They propose that an organ­ isation’s capacity to retool rapidly to create and execute new strategy through learning at the individual and system levels in response to changes and uncertainties in complex environments is key to its success. Strategic learning capability can be conceptualised as an important dynamic capability that IHRD contributes to an organisation. The chapter concludes by examining the role of strategic learning capability for international organisations and discusses the implications for IHRD. In Chapter 13, Bennett and McWhorter explore virtual HRD (VHRD) in the context of IHRD. They provide an important historical overview of the role of technology in IHRD, explore the concept of VHRD, and discuss how technology development can be analysed and better understood from an IHRD perspective. They propose a framework for integrating VHRD and IHRD and highlight implications for both practice and research. The chapter specifically addresses issues related to knowledge, culture, learning, technical capacity, and the goals and boundaries of IHRD using a VHRD lens. In Chapter 14, the final chapter of the second section of the Handbook, Gubbins explores social capital and networking in the context of IHRD.

GARAVAN 9781781954171 PRINT.indd 17

22/09/2017 16:31

18  Handbook of international human resource development She focuses on the boundary of the network at the multinational level and on the interaction between national and international networks. She discusses the importance of the IHRD function and considers the impact of social capital in the transnational context for the development of leaders and managers and their careers. She also examines the importance of the impact of social capital and networks for the HRD professional operating in an international context. Part III of the Handbook focuses on important people development practices that come within the scope of IHRD. We focus on three sets of practices that are central to our understanding of the contribution of IHRD. IHRD research has to date focused on individual level practices with the majority of this emphasis placed on expatriate development issues. Comparatively little is known about the challenge of engaging the wider range of international employees. Other types of international assignees are starting to become more common than traditional expatriates. These different groups include: short-term assignees such as project assignees, development assignees and commuters; and employees who select a more permanent global career involving a variety of international jobs across difference companies and contexts. Team focused IHRD practices are designed to coordinate and integrate diverse team members’ knowledge and increase their efficiency, innovation, and performance while accounting for differences in work styles and time zones. Issues associated with global teamworking and the learning and knowledge transfer effects on non-managerial host country nationals employed in MNCs can be addressed by appropriate IHRD team focused interventions (Shaffer et al., 2012). We include leader development, developing global teams and global talent development as team-focused IHRD practices. IHRD is not simply about developing individual employees. It also includes practices that are directed at the total organisation. We highlight the important role of diversity and inclusion, and global talent development as organisational-focused IHRD practices. Each chapter in this part of the Handbook provides a deep dive on each IHRD practice highlighting important practice issues and research gaps. In Chapter 15, the first chapter in the third section of this book, McLean, Kim and Pruetipibultham look at whether expatriates and inpatriates can be developed, and, if so, how? They consider the determinants of success for expatriates and inpatriates, the link between selection processes and HRD processes, and the learning and development activities that can be used to increase the likelihood of the success of an expatriate or inpatriate. They highlight significant gaps in the field of IHRD research and discuss potential future research avenues in the field. In Chapter 16, Hammond, O’Shea and Pearson explore careers

GARAVAN 9781781954171 PRINT.indd 18

22/09/2017 16:31

International HRD: introduction  ­19 from the point of view of the individual and outline how careers and understanding of career success has changed with the rise of the global economy. They discuss how organisations and careerists manage the transitions associated with global work experiences and debate where the responsibility for career management lies, particularly in a global context. They conclude with a discussion of the challenges and opportunities for IHRD then highlight implications for IHRD research and practice. In Chapter 17, Clarke addresses leader development within the IHRD context. The chapter considers the manner in which leader development practices are subject to cross-cultural differences and cautions against the universal application of homogenous practices. He also explores how leader development has become a central focus for IHRD but highlights a number of key weaknesses regarding the theory and practice of global leader development and suggests specific avenues of research to address these deficiencies. Moving from the development of individual leaders to developing global teams, in Chapter 18 McLean and Kim discuss how global team development is an essential component of IHRD. The chapter considers different types of global teams, defines team success and details specific approaches to developing global teams. A number of challenges involved in developing global teams are outlined and the lack of extant research in the area is addressed with particular areas that require urgent attention highlighted. In Chapter 19, Gedro considers diversity and inclusion from an IHRD perspective and focuses on four key themes: the nature of workplace diversity and inclusion; how corporate social performance can provide a framework to understand the need for IHRD scholars and practitioners to assist organisational leaders with knowledge, skills, and dispositions to successfully lead and manage diverse and inclusive organisations; how the contested HRD perspectives of learning versus performance reconcile within an exploration of diversity and inclusion; and finally, how the field of IHRD can respond to organisational unevenness and exclusion, and contribute to both organisational efficiencies and effectiveness while concurrently working for social justice through workplace diversity and inclusion initiatives. In Chapter 20, the final chapter in this section, Bratton, Garavan, D’Annunzio-Green and Grant explore the issues surrounding IHRD and global talent development. They consider definitional issues concerning what is talent development. Different options for organising and managing global talent development and how it is related to other talent management functions such as talent acquisition and talent retention

GARAVAN 9781781954171 PRINT.indd 19

22/09/2017 16:31

20  Handbook of international human resource development are highlighted. They consider the key dimensions of the global talent development pipeline architecture and the main types of programmes that organisations utilise to develop talent. They consider regional differences and issues related to global talent development and conclude by proposing future areas of research on global talent development in international organisations, as well as recommendations for organisational practice. In Part IV of the Handbook, we consider the issues that arise when researching IHRD. In Chapter 21, McDonnell explores the methodological challenges and considerations in conducting research on IHRD. The chapter focuses on three fundamental issues relevant to conducting research on IHRD: (1) the use of equivalent measurement and construct characteristics; (2) the use of appropriate sampling frames; and (3) the issues involved in survey administration. He provides suggestions and recommendations for better handling these issues in IHRD research.

CONCLUSION AND IMPLICATIONS FOR FUTURE RESEARCH In this chapter, we have discussed some of the issues involved in defining IHRD, we have identified four distinct strands of IHRD scholarship, and discussed important contextual issues that shape IHRD research and practice. Following on from this discussion, we proposed and detailed an overarching framework that will assist IHRD researchers to make sense of a nascent field and we identify a range of important but as yet unanswered research questions for the field. Our overview of existing IHRD theorising reveals a field that is growing but very fragmented. The research base has a number of distinct features and strands that operate relatively independent of each other even though they share many common themes and issues. Scholars have suggested that fragmentation is a feature of an early stage developing field that is growing at a relatively fast pace (Björkman and Welch, 2015) and the IHRD field can be characterised in this way. Our integrated framework (Figure 1.1) suggests many different and as yet unanswered research questions. However, for the purposes of the discussion here, and having taken into consideration the content of the twenty-one chapters included in the Handbook, we highlight four key areas corresponding to the four dimensions of our framework where the most pronounced gaps exist. First, we have relatively little understanding of the most salient influencing factors that operate at the four levels of analysis presented in our framework in Figure 1.1. Therefore, IHRD scholars need to shed light on, for example, how national institutional,

GARAVAN 9781781954171 PRINT.indd 20

22/09/2017 16:31

International HRD: introduction  ­21 cultural and industry factors influence conceptualisations and manifestations of IHRD at the national level of analysis and within internationalising organisations and their local units. We also need insights on how different types of internationalising organisations respond to these contextual factors and the types of IHRD processes, policies and practices that they implement. Scholars can effectively utilise institutional end ecological perspectives to address these questions. A second area that has received scant attention in the IHRD literature concerns the global strategies of internationalising organisations. Each of the internationalising organisations discussed earlier in this chapter will have different global and international strategies and will take different positions on how strategy should be linked to IHRD. Therefore, we have a dearth of understanding of how internationalising organisations implementing different goals and strategies approach IHRD and in particular the mix of practices that they implement. Third, to the best of our know­ ledge, we found no contribution that has investigated the IHRD function, the roles that IHRD specialists perform and the ways in which IHRD policies and practices are formulated and implemented. We lack insights on how these dimensions will differ across different internationalising organisations and there are gaps in our understanding about the roles that IHRD actors perform and the strategies they implement to achieve important individual outcomes. The fourth area concerns investigation of the outcomes of IHRD. The lack of insight concerning both proximal and distal outcomes makes it challenging for IHRD practitioners to make the case for the value of these practices and their return on investment. Scholars could usefully utilise a contingency perspective to investigate these outcomes at the four levels of analysis in the framework. Researchers also have the scope to understand how moderating institutional context factors and cultural differences impact these outcomes. Given the multi-level nature of the framework, there is an urgent need to conduct research on outcomes that traverse these different levels. In conclusion, this Handbook seeks to establish IHRD as an academic area both in the need of and ripe for future theorising and research. The field is nascent but growing at a fast pace. This Handbook brings together a variety of research strands and provides useful foundations for further theory building and testing and it suggests avenues or paths for research that, to date, have not been well travelled.

GARAVAN 9781781954171 PRINT.indd 21

22/09/2017 16:31

22  Handbook of international human resource development

REFERENCES Ahn, Y.S. and McLean, G.N. (2008) Competencies for port and logistics personnel: An application of regional human resource development. Asia Pacific Education Review, 9(4), 542‒551. Alagaraja, M. and Wang, J. (2012) Development of a national HRD strategy model. Human Resource Development Review, 11(4), 407‒429. Anderson, B. and Corley, M. (2003) The theoretical, conceptual and empirical impact of the service economy (No. 2003/22). WIDER Discussion Papers//World Institute for Development Economics (UNU-WIDER). Anderson, V. (2015) International HRD and offshore outsourcing: A conceptual review and research agenda. Human Resource Development Review, 14(3), 259‒278. Barney, J.B. (1991) Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. Bauer, P.T. (1984) Reality and Rhetoric: Studies in the Economics of Development. London: Weidenfield & Nicolson. Becker, G.S. (1964) Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. Chicago: University of Chicago Press. Berman, E. (2015) HRM in development: Lessons and frontiers. Public Administration and Development, 35(2), 113–127. Björkman, I. (2003) The diffusion of human resource management practices among Chinese firms: The role of western multinational corporations. Asia Pacific Business Review, 9, 43–60. Björkman, I. and Welch, D. (2015) Framing the field of international human resource management research. The International Journal of Human Resource Management, 26(2), 136‒150. Boehm, S.A., Kunze, F. and Bruch, H. (2014) Spotlight on age-diversity climate: The impact of age-inclusive HR practices on firm-level outcomes. Personnel Psychology, 67(3), 667‒704. Boyd, B. (1990) Corporate linkages and organizational environment: A test of the resource dependence model. Strategic Management Journal, 11(6), 419‒430. Branson, D. (2001) The very uncertain prospect of ‘global’ convergence in corporate governance. Cornell International Law Journal, 34, 321–361. Bronfenbrenner, U. (1979) The Ecology of Human Development: Experiments by Nature and Design. Cambridge, MA: Harvard University Press. Burt, R.S. (1992) Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press. Burt, R.S. (1997) The contingent value of social capital. Administrative Science Quarterly, 42(2), 339. Busch, D. (2012) Cultural theory and conflict management in organizations: How does theory shape our understanding of culture in practice? International Journal of Cross Cultural Management, 12(1), 9‒24. Cascio, W.F. (2014) Leveraging employer branding, performance management and human resource development to enhance employee retention. Human Resource Development International, 17(2), 121‒128. Cennamo, L. and Gardner, D. (2008) Generational differences in work values, outcomes and person-organisation values fit. Journal of Managerial Psychology, 23(8), 891–906. Chermack, T.J., Lynham, S.A. and Ruona, W. E.A. (2003) Critical uncertainties confronting human resource development. Advances in Developing Human Resources, 5(3), 257‒271. Collings, D.G. (2014) Toward mature talent management: Beyond shareholder value. Human Resource Development Quarterly, 25(3), 301‒319. Contractor, F.J., Kumar, V., Kundu, S.K. and Pedersen, T. (2010) Reconceptualizing the firm in a world of outsourcing and offshoring: The organizational and geograph­ ical relocation of high-value company functions. Journal of Management Studies, 47(8), 1417‒1433.

GARAVAN 9781781954171 PRINT.indd 22

22/09/2017 16:31

International HRD: introduction  ­23 Conway, N. and Briner, R.B. (2005) Understanding Psychological Contracts at Work: A Critical Evaluation of Theory and Research. Oxford: Oxford University Press. Cseh, M., Davis, E.B. and Khilji, S.E. (2013) Developing a global mindset: Learning of global leaders. European Journal of Training and Development, 37(5), 489‒499. De Cieri, H. and Dowling, P.J. (2006) Strategic international human resource management in multinational enterprises: Developments and directions. In Gunter K. Stahl and Ingmar  Björkman (eds) Handbook of Research in International Human Resource Management, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing, pp. 15‒35. De Meulenaere, K., Boone, C. and Buyl, T. (2016) Unraveling the impact of workforce age diversity on labor productivity: The moderating role of firm size and job security. Journal of Organizational Behavior, 37(2), 193‒212. Deloitte (2014) Big demands and high expectations: What generation Y wants from business, government, and the future workplace. http://www2.deloitte.com/uk/en/pages/ press-releases/articles/big-demands-and-highexpectations-what-generation-y-wants.html (accessed 20 December 2016). Dineen, B.R. and Allen, D.G. (2013) Internet recruiting 2.0: Shifting paradigms. In Kang Yang Trevor Yu and Daniel M. Cable (eds) The Oxford Handbook of Recruitment. Oxford: Oxford University Press, pp. 382‒401. Dulebohn, J.H. and Johnson, R.D. (2013) Human resource metrics and decision support: A classification framework. Human Resource Management Review, 23(1), 71‒83. Eisenhardt, K.M. (1989) Agency theory: An assessment and review. The Academy of Management Review, 14(1), 57–74. Freeman, R.E. (1984) Strategic Management: A Stakeholder Approach. Boston: Pitman. Friedman, A.L. and Miles, S. (2002) Developing stakeholder theory. Journal of Management Studies, 39(1), 1–21. Garavan, T.N. and Carbery, R. (2012) A review of international HRD: incorporating a global HRD construct. European Journal of Training and Development, 36(2/3), 129‒157. Garavan, T.N., McCarthy, A.M. and Morley, M.J. (2016) Global Human Resource Development: Regional and Country Perspectives. London: Routledge. Giddens, A. (1984) The Constitution of Society: Outline of the Theory of Structuration. Cambridge: Polity Press. Grant, R.M. (1996) Toward a knowledge-based theory of the firm. Strategic Management Journal, 17, 109–122. Gubbins, C. and Garavan, T.N. (2009) Understanding the HRD role in MNCs: The imperatives of social capital and networking. Human Resource Development Review, 8(2), 245‒275. Harvey, D. (1985) The geopolitics of capitalism. Social Relations and Spatial Structures, 126, 128‒163. Hee Kim, J. and Callahan, J.L. (2013) Finding the intersection of the learning organization and learning transfer: The significance of leadership. European Journal of Training and Development, 37(2), 183‒200. Hofstede, G. (1980) Motivation, leadership, and organization: Do American theories apply abroad? Organizational Dynamics, 9(1), 42‒63. Ibarra, H. (2003) Working Identity: Unconventional Strategies for Reinventing Your Career. Brighton, MA: Harvard Business Publishing. Jensen, M.C. and Meckling, W.H. (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305‒360. Kim, S. and McLean, G.N. (2012) Global talent management necessity, challenges, and the roles of HRD. Advances in Developing Human Resources, 14(4), 566‒585. Kuchinke, K.P. (2010) Human development as a central goal for human resource development. Human Resource Development International, 13(5), 575‒585. Lewis, D. (2009) Non-governmental organizations. In Helmut K. Anheier and Stefan Toepler (eds) International Encyclopaedia of Civil Society. New York: Springer, pp. 195‒198. Li, J. (2015) Connecting the dots: understanding culture differences is the key in ­customizing

GARAVAN 9781781954171 PRINT.indd 23

22/09/2017 16:31

24  Handbook of international human resource development HRD research and practice around the world. Human Resource Development International, 18(2), 113‒115. Li, J., Chu, C.L., Lam, K.K. and Liao, S. (2011) Age diversity and firm performance in an emerging economy: Implications for cross-cultural human resource management. Human Resource Management, 50(2), 247‒270. Lin, N. (1999) Social networks and status attainment. Annual Review of Sociology, 25, 467‒487. McLean, G.N. (2016) Continuous improvement in international or global HRD research. Human Resource Development International, http://dx.doi.org/10.1080/13678868.2016.11 88585. Metcalfe, B.D. and Rees, C.J. (2005) Theorizing advances in international human resource development. Human Resource Development International, 8(4), 449‒465. Meyer, J.W. and Rowan, B. (1977) Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83, 340–363. Mincer, J. (1993) Studies in Human Capital. Aldershot, UK and Brookfield, VT, USA: Edward Elgar Publishing. Mitchell, R., Agle, B.R. and Wood, D.J. (1997) Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853–886. Modisane, K.T. (2015) HRD takes root in Botswana: From fledgling beginnings to positive steps. Human Resource Development International, 18(4), 429‒440. Monks, K., Kelly, G., Conway, E. and Flood, P. (2013) Understanding how HR systems work: The role of HR philosophy and HR processes. Human Resource Management Journal, 23(4), 379‒395. Morley, M.J. (2007) Of Infants and Adolescents: Progress and Pessimism in the Development Trajectory of International Human Resource Management. Keynote Presentation to the 9th Conference on International Human Resource Management, Tallinn: 12‒15 June. Morley, M., Scullion, H., Collings, D. and Schuler, R. (2015) Talent management: A capital question. European Journal of International Management, 9(1), 1‒8. Nonaka, I. and Takeuchi, H. (1995) The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. New York: Oxford University Press. Paisley, V. and Tayar, M. (2016) Lesbian, gay, bisexual and transgender (LGBT) expatriates: An intersectionality perspective. International Journal of Human Resource Management, 27(7), 766‒780. Parker, J. (2000) Structuration. Buckingham: Open University Press. Peterson, L. (1997) International HRD: What we know and what we don’t know. Human Resource Development Quarterly, 8(1), 63‒79. Peterson, M.F. and Castro, S.L. (2006) Measurement metrics at aggregate levels of analysis: Implications for organization culture research and the GLOBE project. The Leadership Quarterly, 17(5), 506‒521. Pfeffer, J. and Salancik, G.R. (1978) The External Control of Organizations: A Resource Dependence Perspective. New York: Harper & Row. Pudelko, M. (2006) A comparison of HRM systems in the USA, Japan and Germany in their socio-economic context. Human Resource Management Journal, 16, 123–153. Pudelko, M., Reiche, B.S. and Carr, C. (2015) Recent developments and emerging challenges in international human resource management. The International Journal of Human Resource Management, 26(2), 127‒135. Rosenzweig, P.M. and Nohria, N. (1994) Influences on human resource management practices in multinational corporations. Journal of International Business Studies, 25(2), 229‒251. Rousseau, D.M. (1989) Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2, 121‒139. Rousseau, D.M. (1998) The ‘problem’ of the psychological contract considered. Journal of Organizational Behavior, 19, 665–671. Rowley, C. and Benson, J. (2002) Convergence and divergence in Asian human resource management. California Management Review, 44, 90–109.

GARAVAN 9781781954171 PRINT.indd 24

22/09/2017 16:31

International HRD: introduction  ­25 Salas, E., Sims, D.E. and Burke, C.S. (2005) Is there a ‘Big Five’ in teamwork? Small Group Research, 36(5), 555‒599. Schuler, R.S., Budhwar, P.S. and Florkowski, G.W. (2002). International human resource management: Review and critique. International Journal of Management Reviews, 4(1), 41–70. Scott, W.R. (2004) Institutional theory. In George Ritzer (ed.) Encyclopedia of Social Theory. Thousand Oaks, CA: Sage Publications, pp. 408‒414. Scott, W.R. (2008) Institutions and Organizations: Ideas and Interests. Los Angeles, CA: Sage Publications. Sen, A. (1985) Commodities and Capabilities. Amsterdam: North Holland. Sen, A. (1999) Development as Freedom. Oxford: Oxford University Press. Shaffer, M.A., Kraimer, M.L., Chen, Y.-P. and Bolino, M.C. (2012) Choices, challenges, and career consequences of global work experiences: A review and future agenda. Journal of Management, 38, 1282–1327. Shrader, R. (2016) Broadening partner benefits to improve recruitment and retention among LGBT employees in United States institutions of higher education. Public Administration Quarterly, 40(1), 180‒207. Sparrow, P. (2009) Integrating people, process, and context issues in the field of IHRM. In P. Sparrow (ed.) Handbook of International Human Resource Management: Integrating People, Process, And Context. London: Wiley, pp. 3‒28. Sparrow, P., Brewster, C. and Harris, H. (2004) Globalizing Human Resource Management. London: Routledge. Stewart, J. and Sambrook, S. (2012) The historical development of human resource development in the United Kingdom. Human Resource Development Review, 11(4), 443‒462. Stiglitz, J. (1998) More instruments and broader goals: Moving toward the post-Washington consensus. Helsinki: Wider Annual Lecture United Nations University, World Institute for Development Economics Research. Stone, D.L., Stone-Romero, E.F. and Lukaszewski, K.M. (2007) The impact of cultural values on the acceptance and effectiveness of human resource management policies and practices. Human Resource Management Review, 17(2), 152‒165. Stone, D.L., Deadrick, D.L., Lukaszewski, K.M. and Johnson, R. (2015) The influence of technology on the future of human resource management. Human Resource Management Review, 25(2), 216‒231. Strohmeier, S. and Kabst, R. (2009) Organizational adoption of e-HRM in Europe: An empirical exploration of major adoption factors. Journal of Managerial Psychology, 24(6), 482‒501. Thite, M. (2013) Ethics and human resource management and development in a global context: A case study of an Indian multinational. Human Resource Development International, 16(1), 106‒115. Twenge, J.M., Campbell, S.M., Hoffman, B.J. and Lance, C.E. (2010) Generational differences in work values: Leisure and extrinsic values increasing, social and intrinsic values decreasing. Journal of Management, 36(5), 1117‒1142. Wang, X. and McLean, G.N. (2007). The dilemma of defining international human resource development. Human Resource Development Review, 6(1), 96‒108. Wasserman, S. and Faust, K. (1994) Social network analysis in the social and behavioral sciences. In S. Wasserman and K. Faust Social Network Analysis: Methods and Applications. Cambridge: Cambridge University Press, pp. 1–27. Wernerfelt, B. (1984) The resource-based view of the firm. Strategic Management Journal, 5(2), 171–180. Wernerfelt, B. (1995) The resource-based view of the firm: Ten years after. Strategic Management Journal, 16(3), 171–174. Whitley, R. (2000). Divergent Capitalisms: The Social Structuring and Change of Business Systems. Oxford: Oxford University Press.

GARAVAN 9781781954171 PRINT.indd 25

22/09/2017 16:31

GARAVAN 9781781954171 PRINT.indd 26

22/09/2017 16:31

PART I CONTEXT

GARAVAN 9781781954171 PRINT.indd 27

22/09/2017 16:31

GARAVAN 9781781954171 PRINT.indd 28

22/09/2017 16:31

2. IHRD in MNCs

Yanqing Lai, Thomas Garavan and Ronan Carbery

INTRODUCTION A multinational enterprise (MNE) or corporation (MNC) is defined as an enterprise that engages in foreign direct investment and owns or controls value-added activities in more than one country (Dunning, 1993, p. 73). In the country where the headquarters is based is known as the home country, while in other countries where MNEs have many foreign affiliates, subsidiaries and branches are known as host countries. MNCs vary considerably from domestic organisations. First, MNEs coordinate productions or service provisions among a sizeable number of foreign nations and internalise the coordination issue within a single organisational structure. Second, a substantial proportion of the transactions or operations in relation to the coordinated activity takes place across borders and national contexts. Third, their workforce, stockholders, owners and managers originate from many different countries. Fourth, MNEs do not simply market their products overseas, instead, they assign a package of capital, technology, managerial talent and marketing skills to carry out production and marketing in their host countries. Last but not least, notwithstanding a wide variation in management structures across foreign affiliates and subsidiaries, the decision-making process is centralised and the parent company (usually located in the home country) has the ultimate control when the international aspects of a subsidiary’s operation become important (Spero and Hart, 2010). Kostova and Zaheer (1999) suggest that multinationals embrace both heterogeneity and multidimensionality, operating in cross-border conditions and creating an external environment that is characterised by additionally complex, diverse, fragmented and nonmonolithic conditions. The internal contexts of MNCs also differ significantly from those of domestic counterparts in spatial, cultural and organisational distance, which is reflected in areas such as language barriers, inconsistencies and conflicts in values, practices and cultures (Peterson and Thomas, 2007). Such high degrees of distinctiveness and uniqueness embodied in various internal and external contextual factors require a diversity of organisational practices and careful strategic 29

GARAVAN 9781781954171 PRINT.indd 29

22/09/2017 16:31

30  Handbook of international human resource development IHRD planning to accommodate or conform to national norms or local influences. The international HRD (IHRD) function in global firms, particularly training and development, performs a wide range of purposes, including acquiring and transferring knowledge, managing foreign subsidiaries and maintaining communication coordination and control between subsidiaries and headquarters (Shah et al., 2012). In MNEs, the training and development usually originates at the HRD function of the HRM department at headquarters and corporate trainers are selected and assigned to subsidiaries to lead and coordinate IHRD programmes and activities in host environments. In other words, the choice of IHRD strategy and its related structure is centralised and designed by the parent company in order to maintain a high level of consistency. The particular features of the home country influence the international orientation as the general philosophy or approach adopted by headquarters in the design and creation of IHRD systems to be utilised by foreign affiliates (Vo and Hannif, 2012). In the training-focused approach, the central stage is for the global HRD professionals and practitioners who are responsible for designing educational and training programmes that not only maintain corporatewide integration but also adapt to local differentiation (Poell and Van Der Krogt, 2014). In addition, managers as the providers of assignments and employees as ‘clients’ also contribute to the effective deployment of IHRD/training programmes in MNCs. However, it is important to note that subsidiary actors involved in the design and delivery of training and development usually do not possess the same power as those in headquarters to manipulate and shape the particular IHRD practices (Ferner et al., 2005). IHRD strategy and practices in MNCs have typically been presented in starkly polarised terms, with arguably idealistic – ‘common global practices’ perspective, and on the other hand, the subsequently ‘local isomorphic’ view. MNCs, which are the drivers of and outcomes from globalisation and market integration, are argued to be destined to disseminate universal ‘best practice’ HRD knowledge and techniques globally (Kidger, Jackson-van Veen and Redfern, 2004). More importantly, they are pressured to coordinate IHRD activities among different foreign affiliates and to ensure a high level of internal equity and congruence throughout the organisation (Tregaskis, Heraty and Morley, 2001). They thus facilitate and endorse the uniformity and homogeneity of IHRD practices. Conversely, the local adaptation approach embedded in cultural and institutional frameworks postulates that contextual and institutional elements impinge on the transferability of IHRD policies and practices across host nations and therefore inhabit the standardisation (Harzing

GARAVAN 9781781954171 PRINT.indd 30

22/09/2017 16:31

IHRD in MNCs  ­31 and Noorderhaven, 2008). Hence, mapping the homogeneity and heterogeneity of IHRD strategy, policy and practices in multinationals and their overseas branches is crucial to secure a skilled and competitive international workforce in the global market. This chapter begins by discussing the role and importance of IHRD strategy in MNCs, built on the resource-based view (RBV) and behavioural psychology perspective. The next section provides theoretical insights into the complexities of the convergence versus divergence debate, addressing the contradictory pressures towards global integration and local differentiation by choosing a standardised approach or local adaptation to accommodate the needs of local operation. This is followed by a detailed discussion of primary IHRD strategies, the application and implementation of IHRD/training practices in MNCs, in relation to both international management groups and employees’ work in host countries. The final section concludes the whole chapter and provides implications for future IHRD research and practice in the context of MNCs.

UNDERSTANDING THE ROLE AND IMPORTANCE OF IHRD IN MNCs The potential benefits of having a quality pool of human capital to organisations have been widely and universally recognised and acknowledged, in terms of improving employee productivity and resulting in continual innovation and increased organisational productivity and profitability (Taylor and Davies, 2004). IHRD is viewed as an important mechanism to build up an effective global workforce and improve the competitive position of an organisation through continuous development and improvement of employees’ knowledge, skills and abilities (Cascio, 2006). Dowling and Welch (2004) argue that training and development are two independent concepts with different objectives. The former is used to improve current employees’ skills and behaviours; while the latter aims to increase abilities in relation to future job promotions, usually towards managerial positions. The resource-based view (RBV) of the firm (Barney, 1991) provides a clear and strong justification for the vital importance of IHRD/training and development to any transnational organisation, which includes MNCs. The RBV posits that a firm’s sustainable competitive advantage rests on its ability and capability to acquire, develop and maintain valuable, rare and distinctive resources that are difficult for rivals to imitate and substitute. Hence, the focus of the resource-based approach to firm strategy is to construct unique core competencies that generate superior long-term organisational performance. In contrast to other resources that

GARAVAN 9781781954171 PRINT.indd 31

22/09/2017 16:31

32  Handbook of international human resource development are relatively easier to imitate, managing human resources involves a more complex, ambiguous and dynamic process and therefore, yields a potential source of a significant and sustainable competitive advantage (Barney and Wright, 1998). An effective and quality workforce requires constant and continuous maintenance and improvement, in the form of investing in education, training and development (Blunch and Castro, 2005). HRD, conceptualised as “the integrated use of training and development, career development, and organisational development to improve individual, group and organisational effectiveness” (Paprock, 2003, p. 1), perfectly fits the criteria as a source for sustained organisational competencies. The argument stresses the significance of IHRD to the bottom-line performance of MNCs also can be situated within the behavioural psychology perspective that IHRD policies and practises affect organisational performance by shaping employee role behaviour, and if employees act in a way that is in line with organisational goals and objectives, firm performance should improve (Jiang et al., 2012). However, Wright, McMahan and McWilliams (1994) argue that international HRM/HRD systems themselves cannot be considered as strategic resources because they can be easily copied (Ferligoj, Prasnikar and Jordan, 1997). Instead, they can contribute to create sustainable competitive advantage through facilitating the development of employee and organisational competencies that are firm specific and yield tacit organisational knowledge (Lado and Wilson, 1994; Reed and DeFillippi, 1990). Regardless of the interpretation, both perspectives suggest that human capital plays a critical role in successful organisations, and that the adoption of an effective IHRD strategy is related to superior organisational performance. In the context of MNCs characterised by complex, geographically diverse local organisations, IHRD is viewed as a strategically critical and imperative component of a wide HRM strategy in global organisations, because of their function of creating, distributing and transferring competencies and capabilities around the overall network and specifically among foreign affiliates and subsidiaries (Bartlett and Ghoshal, 2000). On the other hand, the high degree of organisational complexity and the distinctive structure pressures global HRD professionals and practitioners to train and develop a wide variety of managers and employees, and work within a complicated set of coordination mechanisms (Werner, 2000). Indeed, MNCs not only significantly differ from indigenous firms in local environments, but also vary substantially among themselves, due to the distinctive institutional environments in their originating country (McGraw, 2014). Rosenzweig and Nohria (1994) argue that there are countervailing forces shaping the provision of training and development in multinationals: on the one hand, training and development needs are context bounded and

GARAVAN 9781781954171 PRINT.indd 32

22/09/2017 16:31

IHRD in MNCs  ­33 subject to local conditions; on the other hand, MNCs have corporate-wide training policies and management philosophies favouring certain forms of training to pursue parent practices. Hence, the recurring question in the IHRD literature on MNCs is that the extent to which various subsidiaries act and behave as local organisations and adapt to local IHRD practices, or adopt practices resemble those of the parent company.

THE CONVERGENCE–DIVERGENCE DEBATE: A GLOBAL OR LOCAL APPROACH? Competing in a global market and various complex national environments, MNEs strive to remain primarily rooted to their country-of-origin nation, but are also faced with relatively distinct national economies in different host environments, resulting in a ‘think global’, ‘act local’ paradox (Harzing and Noorderhaven, 2008). Scholars (for example, Tregaskis and Brewster, 2006) call for a global approach with standardised and universal IHRD practices to be implemented and promoted among MNCs, especially given intensified globalisation and market integration that led to uniformity and homogeneity in national employment systems across the globe. On the other hand, criticisms voiced from the opponents argue that transnational and international corporations should respect the variation in culture and institutions in local environment and acknowledge the need for a great variation in IHRD practices across subsidiaries (Quintanilla and Ferner, 2003). Such dichotomous debate between the global approach and local responsiveness is reflected in the convergence and divergence literature. The central debate lies in the “the incidence of homogeneity and heterogeneity in management practices across national borders” (Tregaskis and Brewster, 2006, p. 111). The convergence theories propose that MNCs cling to similar competitive advantage and adopt common organisational structures and systems and thus, their IHRD policies and practices are not subject to the constraints of national and institutional contexts. Kidger, Jackson-van Veen and Redfern (2004) suggest that IHRD practices are unified and converged in response to the pressure of globalisation and integration, and geography is not important. It creates a new homogeneous environment in which the coordination of resources, equipment, finance and people are becoming conspicuous (Sparrow, Brewster and Harris, 2004). The increasing integration leads to the proliferation of global management structures and the uniformity of management techniques around share notions of ‘best practice’ (Sera, 1992). Organisations that operate across the national borders are more exposed to the global competition and thus more

GARAVAN 9781781954171 PRINT.indd 33

22/09/2017 16:31

34  Handbook of international human resource development likely to adopt a global business strategy transcending both internal (for example, people, process and structure) and external (time and country) influences (Parker, 1998), accelerating the speed of convergence. Hence, MNCs are viewed as the primary drivers behind the diffusion of the best and universal IHRD practices (Kidger, Jackson-van Veen and Redfern, 2004). The findings of Zheng, Hyland and Soosay’s (2007) study support the possibility of using some uniform IHRD practices (for example, a similar emphasis on training) across different regions, regardless the wellknown differences in institutional settings and cultural norms between Asian and non-Asian organisations. Morley and Collings (2004) assert a welcome trend of standardisation of employment practices across countries led by powerful MNCs with little attention paid to the institutional constraints of the host countries. However, the convergence perspective is tempered by an opposing view advocating divergence. Quintanilla and Ferner (2003) argue that the increasing complexity and diversity faced by transnational organisations act as counterweights to pressures for convergence. The divergence approach contends that the extent to which MNCs transfer their IHRD policies and practices across borders are conditional on national institutional structures and contextual contingencies (Zheng, Hyland and Soosay, 2007). Such differences often manifested in national culture, legislative and education systems are strongly associated with the variation in IHRD among firms operating in different geographical locations (Carr and Pudelko, 2006). In relation to the coordinating mechanisms that organisations rely on to manage work processes, Anglo-American multinationals embrace the mutual adjustment which accords with the voluntaristic approach; whereas German organisations prefer to standardise skills and stress the establishment of common occupational qualifications for workers, and French global firms are apt to standardise work processes that reflect the emphasis of the top-down approach and a relatively bureaucratic management style (Markowitsch et al., 2001). Hence, a universal model of IHRD may be questionable and misleading. Drawing upon the institutional and culturalism theories, an alternative approach, named the contextual best fit model of IHRD or local adaptation, postulates that IHRD practices which differ across contextual and institutional environments as multinationals localise their practices is advanced. Institutional theories argue that organisations operating in the same environment will gradually adopt similar characteristics and become isomorphic with each other (Kostova and Roth, 2002) in three forms: (1) regulatory (where firms are forced to use specific practices); (2) cognitive (certain practices in relation to success are applied to avoid uncertainty); and/or (3) normative (behaviours considered appropriate to environment)

GARAVAN 9781781954171 PRINT.indd 34

22/09/2017 16:31

IHRD in MNCs  ­35 (Di Maggio and Powell, 1983). Multinationals need to accommodate the formal rules and unwritten norms of specific institutional contexts in order to maintain efficiency and legitimacy (Kostova and Roth, 2002). Confronting a multitude of different and conflicting context-specific factors, organisations that compete in the global market are placed under a myriad of differentiated institutional demands that represent the most challenging and important constraints on the ‘context generalisability’ of IHRD practices (Geppert and Williams, 2006). Each subsidiary of a MNC needs to establish and maintain the external legitimacy in host countries by becoming isomorphic with their multiple and institutional environment, leading to adaptation and local hybridisation of IHRD practices to suit local contexts (Poutsma, Ligthart and Veersma, 2006). Tregaskis, Heraty and Morley (2001) find significant cultural bias in the perception of skill-enhancement needs, lending some support to the institutionalist assertion that IHRD practices are shaped by country-contextual factors. Alternatively, proponents of cultural theories argue that the rationale behind the adaptation of IHRD/training practices to local environments that host MNCs’ subsidiaries is closely associated with cultural contexts that cut across national boundaries (Lao and Ngo, 2001). The influence of culture in different national settings can be manifested in key cultural values (for example, Hofstede’s four value dimensions, 1980), reflected in an integrated whole or social systems from ‘the insider’s point of view’ (Morris et al., 1999), or embrace a hybrid of both in a complementary fashion (Helfrich, 1999). Coget (2011) explain that IHRD practices are initiated and developed based on management’s perceptions of how the society is characterised through its respective culture, what employees are like, how they interpret the implications and how they will behave accorded with national cultures. In other words, firms with a global workforce have to accommodate to various sociocultural and value systems in terms of designing and developing an IHRD/training strategy that suits local differentiation (Kochan et al., 2003). The two contrasting divergence theories (that is, institutional and cultural theory), both advocating that MNCs should adopt a best-fit approach of IHRD in host nations, are not necessarily mutually exclusive; on the contrary, they can be complementary. Giacobbe-Miller et al. (2003) argue that specific cultural characteristics are reflected in individual and group cultural orientations, whereas organisations vary within specific cultures in line with institutional realties. Vo and Stanton (2011) agree with this proposition and reinforce that the critical role of the host country environment in the transfer of IHRD/ training practices is not only associated with the regulatory environment, the union presence and industrial relation systems, but also the history and culture of the host nation.

GARAVAN 9781781954171 PRINT.indd 35

22/09/2017 16:31

36  Handbook of international human resource development On the other hand, a sub-school of regulationist thinking suggests endemic dualities in IHRD practices in response to conflicting pressures towards global integration and local adaptation (Evans, Pucik and Barsoux, 2002; Kostova and Roth, 2002). MNCs may develop and implement IHRD practices characterised by a syndicated and integrated set of local and international practices (Tregaskis, Heraty and Morley, 2001). While MNCs strive to homogenise IHRD activities across national boundaries and endorse a global approach, invariably counterforces impel them to account for local influences. As a result, actual IHRD strategy may incorporate both national and global dimensions (Brewster, Wood and Brookes, 2008). Moreover, each subsidiary of the MNCs has to confront the challenge of establishing and maintaining both external legitimacy in the host country and internal consistency within the MNCs (Kostova and Zaheer, 1999). Probably, the need for internal consistency can be achieved at the level of macro IHRD strategy, and pressures of local variations can be coped with through micro IHRD activities. Noble (1997) argued that MNCs are polycentric or local isomorphic in training but ethnocentric in broader competitive IHRD strategies. On the one hand, foreign affiliates are given autonomy to operate independently; on the other hand, they tend to be influenced by the overall strategic IHRD of the parent company that prescribes their roles. Hence, duality theories may provide a more comprehensive theoretical framework to explain the co-existence of similarity and diversity in IHRD policies and practices adopted by MNCs. Tregaskis, Heraty and Morley (2001) suggests that local and global IHRD practices should be deployed in combination to lever competitive advantage from subsidiary resources and internal international labour markets, and to reflect the response to the multinationals’ international strategy and the international markets they compete in. Using an extensive international dataset of the Cranet survey, Brewster, Wood and Brookes (2008) find evidence of national differences in the manner in which MNCs manage their workforce but also evidence of a commonality in IHRD practice among MNCs. Similarly, a number of MNCs operating in the UK report the presence of strong worldwide and regional philosophies in their IHRD policy (Gunnigle et al., 2007), mainly because MNCs deploy ‘a broad worldwide philosophy and a more specific regional one within this’ (Edwards et al., 2007, p. 22).

GARAVAN 9781781954171 PRINT.indd 36

22/09/2017 16:31

IHRD in MNCs  ­37

IHRD STRATEGY, PRACTICES, ROLE AND IMPLEMENTATION IN MNCs IHRD Strategy and Roles in MNCs Given the contradictory needs of balancing the global coordination (that is, integration) and local responsiveness (that is, differentiation), the range of IHRD strategies in the subsidiaries of MNCs can be best described in Perlmutter’s (1969) and Bartlett and Ghoshal’s (1989) well-known typology: (1) ethnocentric, global strategy; (2) polycentric, multi-domestic strategy; and (3) geocentric, transnational strategy. Such classification corresponds to aforementioned convergence, divergence and dualistic views respectively. In the ethnocentric or global approach, the IHRD/ training and development decision is centralised and subsidiaries resemble the country-of-origin practices. MNCs apply standardised IHRD policies and practices devised within the parent company across the globe and thus create a high degree of internal consistency and corporate-wide integration. In contrast, the polycentric approach recognises prevailing conditions embedded in diverse national cultural phenomena, institutions and economic systems (Farnadale and Paauwe, 2005) and thus, subsidiaries are given autonomy to conform to local institutional and contextual specifications. A geocentric and transitional approach, as an alternative to the IHRD strategy of standardisation or differentiation taken by MNCs, combines strong local responsiveness with the ability to exchange and coordinate internationally or globally and therefore perform a balancing act (de Wit and Meyer, 2004). As Noble (1997) argued, MNCs may be polycentric in components of IHRD (for example, training and development) but ethnocentric in their broader competitive IHRD strategy. In relation to staffing, MNCs adopting the ethnocentric/global approach tend to select and assign parent country nationals (that is, expatriates) to subsidiaries. South Korean MNEs, that traditionally are reluctant to adapt or modify home-rooted IHRD practices to accommodate the institutional specifications of the host workforce, tend to adopt an ethnocentric staffing approach (Kang and Shen, 2012). Such practice relies heavily on expatriates to transfer knowledge and manage subsidiaries and for headquarters to exercise control (Shen, 2006). For multinationals following the polycentric/local approach, key positions in foreign affiliates are filled by host country nationals (HCNs). Findings of Wickam’s (1989) study show that subsidiary managers in MNCs in Ireland form a distinct social group and develop interests and aspirations that are independent from those of the parent company, supporting the local isomorphic view. The geocentric approach suggests that headquarters of MNEs select the best candidates

GARAVAN 9781781954171 PRINT.indd 37

22/09/2017 16:31

38  Handbook of international human resource development globally, such as the use of third-country nationals. Generally, the staffing policy involved in seeking for global managers and talents is closely linked to training and development for international assignments. This is particularly so for MNEs in favour of parent company nationals as expatriates (that is, ethnocentric, global staffing approach). IHRD Practices and Implementation in MNCs The pre-departure training programmes exert a significant influence in ensuring the country-of-origin candidate possesses the necessary and relevant skills and knowledge and meets the expatriate expectations by facilitating the adaptation to an international environment (Shen and Darby, 2006). Intercultural training is defined as any programmes that enhance an individual’s ability to live and work in a foreign setting (Tung, 1981) and thus, should be tailored to the specific requirements of the future expatriate’s job and cultural settings. Hence, the contingency framework used to determine the components of international management training programmes for expatriates should account for country of assignment, type of assignment, duration, purpose of transfer and the time available, and assignees (Dowling, Festing and Engle, 2013; Dowling and Welch, 2004). Scholars (for example, Shen and Darby, 2006) emphasise three critical components of pre-departure training should be provided to expatriates: cultural training, language instruction training, orientation and sensitivity training. Cultural training enables individuals to adjust more rapidly to the local environment and be more effective in their roles (Earley, 1987). Benson (1978) suggests that cultural adjustment is related to a number of dimensions, including language and communication skills, interactions, participation in host country activities and displaying appropriate behaviours. It is important to point out that a critical core of such aspects needs to be covered at least at a minimum level in training programmes in order to enable the expatriate to develop a realistic preview of colleagues, working environment and corporate culture in host nations (Spruell, 1985). Shen and Darby (2006) conclude that the major elements of pre-departure training implemented by leading Western MNEs, include cultural awareness training, language training, orientation (briefing on host environment, job roles) and sensitivity training. Tung (1988) reported that European multinationals emphasise language training more than their US counterparts. America-originated MNCs are deeply rooted in their country-of-origin traditions and norms and tend to be ill-prepared for overseas assignments because of a lack of multinational experience, historical perspective of different cultures and extensive formal training (Von Glinow and Milliman, 1990).

GARAVAN 9781781954171 PRINT.indd 38

22/09/2017 16:31

IHRD in MNCs  ­39 Littrell and Salas (2005) comment that the efficiency of the expatriate’s adjustment and work performance largely depends on the rigour of the training programmes. It is believed that experiential (interpersonal) training approaches are more effective than documentary (information) methods. However, Earley (1987) found that these two approaches are additive and mutually complementary, suggesting that using multiple approaches may be significantly more effective than a single one. Furthermore, evidence has shown that the pre-departure training within MNEs to expatriates is country-specific, in terms of availability, the method and design of training programmes. For instance, MNEs originating from Australia (for example, Shen and Lang, 2009), China and Taiwan (for example, Shen and Darby, 2006; Lin and Wei, 2005), and New Zealand (for example, Seak and Enderwick, 2008) tend to provide limited preparatory training, whereas European MNCs are more generous in terms of offering pre-departure training to international managers (Mitrev and Culpepper, 2012). In addition to this, the findings of Tung’s (1981; 1988) studies indicate that European and Japanese international training activities that utilise on-job exposure and involve both intellectual and emotion perspectives tend to be longer, more in-depth and more customised than those in the US. There is a long-standing literature emphasising the importance of involving spouses and family in pre-departure training (Adler, 1986; Tung, 1988). Partners and families of expatriates often experience greater difficulties and culture shocks, and are given fewer opportunities for them to establish extensive contacts and friendship in foreign cultures compared to the working expatriate (Adler, 1986; Harvey, 1985). The inability of the expatriate’s partner to adapt to different cultural and institutional environments is found to be a major contributor to high expatriate failure rate. Yet empirical findings reported in the existing research show that pre-departure training for expatriates’ spouses and families have been ignored or given less priority by the majority of MNCs (Shen and Darby, 2006; Welch, 1994; Mendenhall, Dunbar and Oddou, 1987). In parallel with pre-departure training, post-arrival training is another important dimension of international training for expatriates. It is an effective mechanism to help expatriates to adjust the structured pre-­departure training to their unstructured and unpredicted expatriate experience, and thus minimise the potential issues in relation to cultural adjustment (Wang and Tran, 2012; Kang, Shen and Xu, 2015). Compared to predeparture training, post-arrival training offers an important opportunity for expatriates to evaluate any emerging stressors and problems (Sanchez, Spector and Cooper, 2000). Nevertheless, the extant literature attributed to international training has remained largely a pre-departure training

GARAVAN 9781781954171 PRINT.indd 39

22/09/2017 16:31

40  Handbook of international human resource development phenomenon (Wood, 2011). Shen (2004) reports that there is no formal and compulsory policy about post-arrival training for expatriates made at the corporate level in many Chinese MNEs, and it is normally left to local managers to decide whether such training is needed. The polycentric and geocentric perspectives, on the other hand, suggest that the development of global managers should not exclude HCNs and third-country nationals (Debrah and Rees, 2011). However, promoting HCNs in managerial roles is a double-edged sword. On one hand, it enhances the morale of HCNs and overcomes language and cultural barriers with host country colleagues (Wong and Law, 1999). On the other hand, without well-built trust, the localisation progress can be disrupted if MNCs grant authorities and assign responsibilities to the nonexpatriate managers (Herrmann and Werbel, 2007). One plausible solution is to transfer talented HCN managers that have been appointed in subsidiaries to headquarters (that is, inpatriation) (Edstrom and Galbraith, 1977). Vo (2009) finds that US-owned MNCs offer HCNs opportunities to advance their leadership careers at both regional and global levels. Similarly, German MNCs are more likely to promote HCN subordinates if there are clear mutual benefits between their supervisors and them, or they are supported to achieve their objective through the organisation (Herrmann and Werbel, 2007). The onus for introducing training-efforts to upgrade the quality of a borderless workforce in MNCs is not only applied to management development, but also to host country nationals – those employees working in foreign affiliates (Dowling and Welch, 2004). Yet, the international training literature and research in multinational firms has focused on the training and development of expatriates and international management groups (for example, Neupert, Baughn and Dao, 2005; Osman-Gani, 2000). The comparative institutional theory discussed in preceding sections suggests that particular national- and institutional-bounded factors affect the approach that MNCs adopt to the human capital utilisation and IHRD practices. For example, a growing number of research applied to the cross-cultural analysis has demonstrated that the adoption and implementation of international IHRD/training policies and practices are culturally contingent (Peretz and Rosenblatt, 2006). An array of macroand micro-level contextual factors related to a home nation’s indigenous influence, host country effect and firm-specific attributes have been identified in IHRD literature to explain the localisation of IHRD policies and practices in MNCs, including ‘country of origin’ (COO), ‘country of host’ (COH), national educational level, legislative requirement, workforce size, the level of foreign ownership and industry. The COO and COH effect has a long pedigree in the extant literature

GARAVAN 9781781954171 PRINT.indd 40

22/09/2017 16:31

IHRD in MNCs  ­41 related to the local responsiveness of IHRD in MNCs (Ferner, 1994). The former refers to the nature of management practices in overseas affiliates, is influenced by the management ideology and techniques embedded in the MNC’s home country (Ferner, 1997), and argues that an MNC’s IHRD approach is dominated by home country traditions and norms (Gunnigle et al., 2007). The COO effect has been validated in Japanese and US multinational organisations by introducing their preferred work practices and work expectations into their European subsidiaries. For example, Gunnigle et al. (2007) find that US MNC subsidiaries in Ireland are most likely to report the presence of a global IHRD approach and the overriding influence of the parent practices, indicating an ethnocentric training approach. McGraw (2014) find the OCC patterns are evident regarding the investment in training and development among different originating MNCs: German and other European MNCs tend to invest significantly more on IHRD than Australian or Asian MNCs, because it is part of their institutional environment (McDonnell et al., 2011). Whitley (1992) argued that the distribution of the country-of-origin IHRD/training practices to MNC’s overseas branches is closely linked to the degree of openness and acceptance of the host-country environment. If a host environment embraces openness and permissiveness, the constraints imposed on the transfer of dominant best practices to an MNC’s foreign subsidiary are significantly fewer in contrast to the situation in a constraining/closed host-country environment. Nevertheless, the COO effect characterised by a high level of ethnocentricity (Perlmutter, 1969) is often challenged by proponents of the polycentric approach, arguing that the traditions and norms in host countries have a stronger prevailing effect on IHRD approach across multinationals’ foreign subsidiaries. Many scholars (for example, Drost et al., 2002 and Shen and Darby, 2006) have reinforced the importance of host-contextual factors and decentralising the control of the parent company in training and development, due to different skill levels, educational standards of the labour force, government policies, economic development, business practices, industrial trends and cultural characteristics. Tregaskis, Heraty and Morley’s (2001) study of MNCs in Ireland and the UK supports the polycentric view, and finds that MNCs adapt their IHRD practices to accommodate national difference in two host nations. Drost et al. (2002) suggest that the variations in training and development practices, results from the differentiated skill levels and educational standards of the local labour force, suggesting that national differences in educational levels (rather than individual educational attainment) shape the MNCs’ IHRD activities. For example, in Indonesia where the overall education level is much lower than that in Malaysia and Thailand, MNEs

GARAVAN 9781781954171 PRINT.indd 41

22/09/2017 16:31

42  Handbook of international human resource development are more likely to provide training to address the essential need for upskilling the labour force (ADB, 2005). Legislative requirements levied by host governments also contribute to the differences in IHRD practices across subsidiaries. For instance, at the early phases of the economic reform in China, foreign MNCs are obliged to train unskilled and low-level Chinese workers as part of a joint-venture deal (Tsang, 1994). Smith (2006) suggests that IHRD strategies in Australian MNCs are more influenced by the policy environment compared with organisationally driven and focused American counterparts. Workforce size may exert an influence on the level of investment in training and development programmes by MNEs (Smith, 2006). Generally, larger organisations are more likely to provide formal and structured training practices than their small and medium sized firms. This negative relationship between training and firm size can be explained by the resource-constraint view that smaller organisations are prone to financial constraint and are unable to achieve economies of scale like their larger counterparts do. Hence, they are less likely to capture the returns on training and conduct IHRD programmes that deliver primarily shortterm payoffs because of their cost-consciousness, low-risking taking and uncertain planning horizons (Szamosi, Duxbury and Higgins, 2004). In addition, Felstead and Green (1996) argue that the high level of training provided by larger firms characterised by more regulation and bureaucracy is a response to meet safety requirements. Foreign ownership is another important indicator of IHRD investment in foreign affiliates, because it reflects whether the subsidiary is wholly or partially owned by MNCs and the degree of integration or interdependence accorded to different parts of the whole organisation (Brewster, Wood and Brookes, 2008). The more MNCs invest in host countries, the more they invest in human capital through training and development (Lynch and Black, 1995). Zheng, Hyland and Soosay (2007) postulate that the investment in training and development in foreign subsidiaries is simultaneously and positively related to MNCs’ heavy investments in physical capital in order to enhance global workforce capability. There is supportive evidence of a positive association between foreign ownership of firms and levels of employee training in Mexico (Tan and Lopez-Acevedo, 2003), Taiwan and Malaysia (Tan and Batra, 1996) and China (Shen and Darby, 2006). Industry has emerged as a significant firm-specific explanatory factor as studies have indicated that a global firms’ approach to IHRD/­training functions may be industry-specific (Gunnigle et al., 2007; Tregaskis, Heraty and Morley, 2001). Specifically, an overall rule that there are more formal training programmes present in the service sector than the

GARAVAN 9781781954171 PRINT.indd 42

22/09/2017 16:31

IHRD in MNCs  ­43 manufacturing sector has been observed in IHRD literature and prior empirical research (for example, Blunch and Castro, 2005), indicating that MNCs competing in the tertiary sector are more likely to provide training to local nationals. One plausible explanation is the relatively high skill levels required in the majority of the service industry, for example, finance, insurance and business, social or personal services. To sum up, in line with the comparative institutional theory and local adaptation approach, international training and development programmes designed for expatriate managers (that is, parent country nationals) and employees in local subsidiaries (that is, local country nationals) both need to take a polycentric and local approach. The success of expatriate assignments largely relies on the rigour of pre-departure training programmes that account for host-contextual factors, including political, legal, economic and sociocultural aspects (Shen and Darby, 2006). While these contextual and institutional factors have a parallel impact on the design and delivery of training and development activities for HCNs at the employee level, the amount of investment in training and development for the largest occupational group is also shaped by unique organisationalspecific characteristics, such as workforce size, foreign ownership and industry.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE Drawing upon the globalisation theory that promotes the standardisation of elements including management systems, local cultures, institutional arrangements and labour practices (Hall and Soskice, 2001), the convergence thesis emphasises the inevitable tendency towards commonality and uniformity in multimodal practices. In relation to IHRD practices, a global approach that IHRD practices originated from parent companies that are universally applicable and valid beyond the national culture and institutional environment should be followed (Kucherov and Zavyalova, 2014). Nevertheless, the advocates of the divergence perspective, largely based on the comparative institutionalist and culturalist thinking, contend that the IHRD structure and process in global firms have to be aligned to the heterogeneity of the foreign environment hosts and their affiliates and conform to local differences. The search for and development of international managerial talents in MNCs has taken an ethnocentric, global perspective, largely relying on the use of parent country nationals or expatriates. However, international training and development programmes in relation to the success of international assignments in MNCs

GARAVAN 9781781954171 PRINT.indd 43

22/09/2017 16:31

44  Handbook of international human resource development do reflect the principles of a polycentric model, accounting for the host’s national diversity. Despite of being under-investigated in IHRD literature on MNCs, a polycentric, local training approach embedding social, institutional-specific influences and firm-specific attributes is promoted in relation to the training and development for lower level employee groups in foreign subsidiaries. The review of the IHRD literature in MNCs provides some avenues for future research. As the argument of convergent and divergent thesis continues, an alternative theory that embraces both homogeneity and heterogeneity in IHRD practices amongst multinational firms has attracted increasing attention in IHRD literature on MNCs (for example, Evans, Pucik and Barsoux, 2002; Kostova and Roth, 2002). Built on this research and theoretical underpinnings, future studies ought to further investigate the validity of the duality perspective and refine the understanding of the ‘think global’, ‘act local’ myth, particularly the strength of the relationship between national/institutional differences and the choice of multinationals’ IHRD strategy and practices. Despite the vital importance of international training and management, there is a lack of empirical studies to draw more definitive conclusions on how international training and development is implemented by MNCs (Shen, 2004). Future research should investigate the effectiveness and rigour of different IHRD programmes, methods and duration for international assignments. In this case, empirical data on training programmes and training provision for expatriates and low-level employees in subsidiaries that identify and foster global talents and a competitive international workforce is required to develop an international training and development approach. Facing the conflicting needs of globalising and localising IHRD practices across national borders, it is suggested that global HRD managers and practitioners should incorporate both national and global dimensions in IHRD strategy, policies and practices (Brewster, Wood and Brookes, 2008). The commonality and homogeneity in IHRD practices can be attained based on the closeness of national contexts and the macro nature of the IHRD issues, whereas the variation and heterogeneity can be met through micro IHRD activities (for example, perceived skill enhancement). For multinationals competing in different cultural environments, the application and transfer of parent-country IHRD practices is more likely to succeed in host countries that share similar institutional arrangements or traditions with the parent country, and/or where the cultural distance is minimal (Tregaskis, Heraty and Morley, 2001), and/or where there is an open and tolerant host-country environment (Whitley, 1992). So far, the most senior managers and executives of MNEs in host countries are often selected from the parent company and assigned to subsidiaries. In this

GARAVAN 9781781954171 PRINT.indd 44

22/09/2017 16:31

IHRD in MNCs  ­45 case, MNCs should provide wide-ranging rigorous pre-departure training, such as cultural awareness training, preliminary visits, language training, management and technical skills trading (Dowling, Festing and Engle, 2008). Particularly, given that the inability of the expatriates’ partners and families to adjust to the foreign culture and environment is one central reason of failing international assignments, organisations operating in the global market should provide respective formal preparatory training programmes (for example, language training classes and cultural adjustment sessions) to spouses or families for overseas placements. In addition to this, the international training should include post-arrival training that enables expatriates to combine explicit knowledge and information from their prior knowledge with real experience, which should be taken into account by MNCs (Mendenhall et al., 2002). On the other hand, such ethnocentric staffing policy may result in difficulties in attracting nonparent national talents and thus limit the global vision of the MNCs (Shen and Darby, 2006). Hence, MNCs should provide more opportunities to host country nationals and third country nationals in terms of developing and nurturing a truly global management team, gradually shifting towards a polycentric or geocentric approach.

CONCLUSION The importance of the training and development function in developing, maintaining and upgrading the quality of human capital to generate superior firm performance has been well-documented in IHRD literature. There is no exception for MNCs. The RBV provides a significant theoretical framework for understanding how competitive advantage within firms can be accomplished and sustained over time through continuously training, educating and developing their human capital (Eisenhardt and Martin, 2000). The RBV suggests that competitive advantage can only be found in the rare, imperfectly imitable, and non-substitutable resource already present in the firm, which is literally embodied in its staff (Boselie, Dietz and Boon, 2005; Barney, 1991). This relationship can also be directly inferred from the behavioural psychology perspective that IHRD/training activities can elicit and reinforce the set of employees’ behaviour that leads to better firm performance. In contrast to domestic and ingenious organisations, MNCs are physic­ ally dispersed in environmental settings, and coordinate and internalise operations and activities across many countries. Such unique characteristics suggest that MNCs are confronted with a great latitude of countervailing pressures towards internal consistency and external legitimacy

GARAVAN 9781781954171 PRINT.indd 45

22/09/2017 16:31

46  Handbook of international human resource development in organisational practices. The debate on what affects IHRD strategy, policy and practices in MNCs is dichotomous, represented by the dualistic view of convergence–divergence. Some suggest that the country context, and the institutionalisation that flows from it, are all important to devise an effective IHRD strategy (Tregaskis, Heraty and Morley, 2001); while others argue that IHRD practices are not subject to the constraint of local contextual and institutional influences. Notwithstanding that evidence is mixed, there is a dominant trend of using the combination of global and local HRD practices that both reflect multinationals’ IHRD strategy and accommodate the international markets (Brewster, Wood and Brookes, 2008), suggesting the increasing recognition of values of both approaches. Arguably, the particular characteristics of country-of-origin become an ingrained part of corporate identity, acting as a general philosophy guiding headquarters to develop IHRD practices that are specific to each host nation.

REFERENCES Adler, N.J. (1986). Women in management worldwide. International Studies of Management and Organisation, 3‒4: 3‒32. Asian Development Bank (ADB). (2005). Key indicators 2005 – labour markets in Asia: Promoting full productive, and decent employment. www.adb.org/documents/books/ key_indicators/2005/default.asp (accessed 3 March 2016). Barney, J. (1991). Firm resource and sustained competitive advantage. Journal of Management, 17(1): 99‒120. Barney, J.B. and Wright, P.M. (1998). On becoming a strategic partner: The role of human resource in gaining competitive advantage. Human Resource Management, 37(1): 31‒46. Bartlett, C.A. and Ghoshal, S. (1989). Managing Across Borders: The Transitional Solution. Boston, MA: Harvard Business School Press. Bartlett, C.A. and Ghoshal, S. (2000). Transnational Management (3rd edition). New York: McGraw-Hill. Benson, P.G. (1978). Measuring cross-cultural adjustment: The problem of criteria. International Journal of Intercultural Relations, Spring, 21‒37. Blunch, N. and Castro, P. (2005). Multinational enterprises and training revisited: Do international standards matter? Social Protection Discussion Paper Series, No. 0504, Social Protection Unit, Human Development Hub, the World Bank, Washington DC. Boselie, J.P., Dietz, G. and Boon, C. (2005). Commonalities and contradictions in research on human resource management and performance. Human Resource Management, 15(3): 67‒94. Brewster, C., Wood, G. and Brookes, M. (2008). Recent survey evidence on the human resource management policies of multinational corporations. British Journal of Management, 19: 320‒342. Carr, C. and Pudelko, M. (2006). Convergence of management practices in strategy, finance and HRM between the USA, Japan and Germany. International Journal of Cross Cultural Management, 6(1): 75‒99. Cascio, W.T. (2006). Managing Human Resource: Productivity, Quality of Work Life, Profits (7th edition). New York: McGraw-Hill-Irwin.

GARAVAN 9781781954171 PRINT.indd 46

22/09/2017 16:31

IHRD in MNCs  ­47 Coget, J. (2011). Does national cultural affect firm investment in training and development? Academy of Management Perspective, November, 85‒87. de Wit, B. and Meyer, R. (eds) (2004). Strategy: Process, Content and Context: An International Perspective (3rd edition). London: Thomson. Debrah, Y.A. and Rees, C.J. (2011). The development of global leaders and expatriates. In A.W. Harzing and A.H. Pinnington (eds), International Human Resource Management (3rd edition). London: Sage Publications, pp. 377‒414. Di Maggio, P. and Powell, W. (1983). The iron cage revisited. American Sociological Review, 48: 147‒160. Dowling, P.J. and Welch, D. (2004). International Human Resource Management: Managing People in Multinational Context (4th edition). London: Thomson Learning. Dowling, P.J., Festing, M. and Engle, A. (2008). International Human Resource Management (5th edition). South Melbourne: Thomson. Dowling, P.J., Festing, M. and Engle, A. (2013). International Human Resource Management (6th edition). London: Cengage Learning. Drost, E.A., Frayne, C.A., Lowe, K.B. and Geringer, J.M. (2002). Benchmarking training and development practices: A multi-country comparative analysis. Human Resource Management, 41(1): 67‒86. Dunning, J.H. (1993). Re-evaluating the benefits of foreign direct investment. In UNCTAD (ed.) Companies Without Borders: Transnational Corporation in the 1990s. London: Cengage Learning, pp. 73‒101. Earley, P.C. (1987). Intercultural training for managers: A comparison of documentary and interpersonal methods. Academy of Management Journal, 30: 685‒698. Edstrom, A. and Galbraith, J. (1977). Alternative policies for international transfers of managers. Management International Review, 17(2): 11‒22. Edwards, P., Edwards, T., Ferner, A., Marginson, P. and Tregaskis, O. (2007). Employment Practice of MNCs in Organisational Context: A Large-Scale Survey. Advance Feedback Report to Participating Companies. De Montfort, Kings College London and Warwick Business School. Eisenhardt, K.M. and Martin, J.A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10/11): 1105. Evans, P., Pucik, V. and Barsoux, J.L. (2002). The Global Challenge: Frameworks for International Human Resource Management. New York: McGraw-Hill/Irwin. Farnadale, E. and Paauwe, J. (2005). The role of corporate HR functions in MNCs: The interplay between corporate, regional/national and plant level. International Programs Visiting Fellow Working Papers, US: Cornell University. Felstead, A. and Green, F. (1996). Training and the business cycle. In A. Booth and D. Snower (eds) Acquiring Skills. Cambridge: Cambridge University Press, pp. 255‒284. Ferligoj, A., Prasnikar, J. and Jordan V. (1997). Competitive advantage and human resource management in SMEs in a transitional economy. Small Business Economics, 9(6): 503‒514. Ferner, A. (1994). Multinational companies and human resource management: An overview of research issues. Human Resource Management Journal, 4(3): 79‒102. Ferner, A. (1997). Country of origin effect and HRM in multinational companies. Human Resource Management Journal, 7(1): 19‒37. Ferner, A., Almond, P., Colling, T. and Edwards, T. (2005). Policies on union representation in US multinationals in the UK: Between micro-politics and macro-institutions. British Journal of Industrial Relations, 43(4): 703‒728. Geppert, M. and Williams, K. (2006). Global, national and local practices in multinational corporations: Towards a socio-political framework. The International Journal of Human Resource Management, 17(1): 49‒69. Giacobbe-Miller, J., Miller, D., Zhang, W. and Victorow, V. (2003). Cultural and organizational-level adaptation to foreign workplace ideologies. Journal of International Business Studies, 34(4): 389‒407. Gunnigle, P., Lavelle, J., McDonnell, A., Collings, D.C., Morley, M., Turner, T. and Wallace, J. (2007). Human Resource Practices in Multinational Companies in Ireland:

GARAVAN 9781781954171 PRINT.indd 47

22/09/2017 16:31

48  Handbook of international human resource development A Large-Scale Survey. Dublin: Employment Relations Research Unit, University of Limerick. Hall, P. and Soskice, D. (2001). An introduction to varieties of capitalism. In P. Hall and D. Soskice (eds), Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford: Oxford University Press, pp. 1‒70. Harvey, M.G. (1985). The executive family: An overlooked variable in international assignments. Columbia Journal of World Business, Spring, 84‒91. Harzing, A. and Noorderhaven, N. (2008). Headquarters–subsidiary relationships and the country-of-origin effect. In M.P. Feldman and G.D. Santangelo (eds) New Perspectives in International Business Research. Progress in International Business Research. Bingley: Emerald Group Publishing, pp. 13‒40. Helfrich, H. (1999). Beyond the dilemma of cross-cultural psychology: Resolving the tension between emic and etic approaches. Culture and Psychology, 5(2): 131‒154. Herrmann, P. and Werbel, J. (2007). Promotability of host country nationals: A cross cultural study. British Journal of Management, 18: 281‒293. Hofstede, G. (1980). Culture’s Consequences: International Differences in Work-related Values. Beverly Hills, CA: Sage Publications. Jiang, K., Lepak, D.P., Hu, J. and Baer, J.C. (2012). How does human resource management influence organisational outcomes? A meta-analytic investigation of mediating mechanism. Academy of Management Journal, 55: 1264‒1294. Kang, H. and Shen, J. (2012). International human resource management policies and practices of South Korean MNEs: A review of the literature. Asia Pacific Business Review, 20(1): 42‒58. Kang, H., Shen, J. and Xu, G. (2015). International training and management development policies and practices of South Korean MNEs in China. Thunderbird International Business Review, 57(3): 229‒240. Kidger, P., Jackson-van Veen, M. and Redfern, D. (2004). Transferring the investors in people concept for the UK to the Netherlands. Journal of European Industrial Training, 28(6): 499‒518. Kochan, T., Bezrukova, K., Fly, R., Jackson, S., Joshi, A., Jehn, K. et al. (2003). The effects of diversity on business performance: Report of the diversity research network. Human Resource Management, 42: 3‒21. Kostova, T. and Roth, K. (2002). Adoption of an organisational practice by subsidiaries of multinational corporations. Academy of Management Journal, 45(1): 215‒233. Kostova, T. and Zaheer, S. (1999). Organisational legitimacy under conditions of complexity: The case of the multinational enterprise. Academy of Management Journal, 45: 281‒290. Kucherov, D.G. and Zavyalova, E.K. (2014). HRD/HRM strategy and practices in MNCs in developed and developing countries: A cultural research. Working Paper, SaintPetersburg State University. Lado, A.A. and Wilson, M.C. (1994). Human resource systems and sustained competitive advantage: A competency-based perspective. Academy of Management Review, 19(4): 699‒727. Lao, C. and Ngo, H. (2001). Organisational development and firm performance: A comparison of multinational and local firms. Journal of International Business Studies, 32(1): 95‒114. Lin, C.Y.Y. and Wei, Y.C. (2005). An Eastern and SME version of expatriate management: An empirical study of small and medium enterprises in Taiwan. International Journal of Human Resource Management, 16: 1431‒1453. Littrell, L.N. and Salas, E. (2005). A review of cross-cultural training: Best practices, guidelines, and research needs. Human Resource Development Review, 4: 305‒334. Lynch, L.M. and Black, S.E. (1995). Beyond the incident of training: evidence from a national employer survey. NBER Working Paper No. 5231. New York: National Bureau of Economic Research. Markowitsch, J., Kollinger, I., Warmerdam, J., Moerel, H., Konrad, J., Burell, C. and Guile,

GARAVAN 9781781954171 PRINT.indd 48

22/09/2017 16:31

IHRD in MNCs  ­49 D. (2001). Competence and Human Resource Development in Multinational Companies in European Union Three Member States: A comparative Analysis between Austria, the Netherlands and the United Kingdom. Luxembourg: Office for Office Publication of the European Communities. McDonnell, A., Russell, H., Sablok, G., Stanton, P., Brugess, J. and Bartram, T. (2011). Methodology and research on human resource practices of multinational enterprise in Australia. Australian Bulletin of Labour, 37(2): 230‒245. McGraw, P. (2014). A review of human resource development trends and practices in Australia: Multinationals, locals, and responses to economic turbulence. Advances in Developing Human Resources, 16(1): 92-107. Mendenhall, M.E., Dunbar, E. and Oddou, G. (1987). Expatriate selection, training and career-pathing: A review and critique. Human Resource Management, 26(3): 331‒345. Mendenhall, M., Kuhlmann, T.M., Stahl, G.K. and Osland, J.S. (2002). Employee Development and Expatriate Assignments. London: Blackwell. Mitrev, S. and Culpepper, R. (2012). Expatriation in Europe: Factor and insights. Journal of International Business Studies, 36: 519‒538. Morley, M.J. and Collings, D.G. (2004). Contemporary debates and new directions in HRM in MNCs: Introduction. International Journal of Manpower, 25(6): 487–499. Morris, M., Leung, K., Ames, D. and Lickel, B. (1999). A view from the inside and the outside: Integrating emic and etic insights about culture and judgement. Academy of Management Review, 24(4): 781‒796. Neupert, K.E., Baughn, C.C. and Dao, T.T.L. (2005). International management skills for success in Asia. Journal of European Industrial Training, 29(2): 165‒180. Noble, C. (1997). The management of training in multinational corporations: Comparative case studies. Journal of European Industrial Training, 21, February/March, 102‒110. Osman-Gani, A.M. (2000). Developing expatriates for the Asia-Pacific region: A comparative analysis of multinational enterprise managers from five countries across the three continents. Human Resource Development Quarterly, 11(3): 213‒236. Paprock, K. (2003). A review of HRD research in East Asia. Unpublished Paper. Parker, B. (1998). Globalisation and Business Practice: Managing Across Boundaries. London: Sage Publications. Peretz, H. and Rosenblatt, Z. (2006). The role of national values in organisational training: A Comparative study in 16 countries. In M. Weaver (ed.), Proceedings of the Sixty-fifth Annual Meeting of the Academy of Management, ISSN 1543-8643. Perlmutter, H.V. (1969). The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4(1): 9‒18. Peterson, M.F. and Thomas, D.C. (2007). Organisational behaviour in multinational organ­ isations. Journal of Organisational Behaviour, 28: 261‒279. Poell, R.E. and Van Der Krogt, E.J. (2014). The role of human resource management in organisational change: Professional development strategies of employees, managers and HRD practitioners. In S. Billett, C. Harteis and H. Gruber (eds), International Handbook of Research in Professional and Practice-based Learning. New York: Springer, pp. 1043‒1070. Poutsma, E., Ligthart, P.E.M. and Veersma, U. (2006). The diffusion of calculative and collaborative HRM practices in European firms. Industrial Relations, 45(4): 513‒546. Quintanilla, J. and Ferner, A. (2003). Multinational and human resource management between global convergence and national identity. International Journal of Human Resource Management, 14(3): 363‒368. Reed, R. and DeFillippi, R.J. (1990). Causal ambiguity, barriers to imitation, and sustainable competitive advantage. Academy of Management Review, 15(1): 88‒102. Rosenzweig, P.M. and Nohria, N. (1994). Influences on human resource development practices in multinational corporations. Journal of International Business Studies, 25(2): 229‒251. Sanchez, J.I., Spector, P.E. and Cooper, C.L. (2000). Adapting to a boundaryless world: A developmental expatriate model. Academy of Management of Executive, 14: 96‒106.

GARAVAN 9781781954171 PRINT.indd 49

22/09/2017 16:31

50  Handbook of international human resource development Seak, N. and Enderwick, P. (2008). The management of New Zealand expatriates in China. International Journal of Human Resource Management, 19: 1298‒1313. Sera, K. (1992). Corporate globalisation: A new trend. Academy of Management Executive, 6(1): 89‒96. Shah, F.A., Yusaff, R.M., Hussain, A. and Hussain J. (2012). A critical review of multinational companies, their structure and strategies and their link with international human resource management. Journal of Business and Management, 3(5): 28‒37. Shen, J. (2004). International training and management development: Theory and reality. Journal of Management Development, 24(7): 656‒666. Shen, J. (2006). Factors affecting international staffing in Chinese MNEs. International Journal of Human Resource Management, 17(2): 295‒315. Shen, J. and Darby, R. (2006). Training and management development in Chinese multinational enterprises. Employee Relations, 28(4): 342‒362. Shen, J. and Lang, B. (2009). Cross-cultural training and its impact on expatriate performance in Australian MNEs. Human Resource Development International, 12: 371‒386. Smith, A. (2006). The development of employer training in Australia. Education + Training, 48(4): 252‒261. Sparrow, P., Brewster, C. and Harris, H. (2004). Globalising Human Resource Management. London: Routledge. Spero, J.E. and Hart, J.A. (2010). The Politics of International Economic Relations (7th edition). Boston: Wadsworth Publishing. Spruell, G. (1985). How do you ensure success of managers going abroad? Training and Development Journal, December, 22‒24. Szamosi, L.T., Duxbury, L. and Higgins, C. (2004). Toward an understanding of people management issue in SMEs: a South-Eastern European perspective. Education and Training, 46(8/9): 444‒465. Tan, H. and Batra, G. (1996). Enterprise training in developing countries: Overview of incidence, determinants and productivity outcomes. Private Sector Development Department. Occasional Papers, World Bank, Washington, DC. Tan, H. and Lopez-Acevedo, G. (2003). Mexico: In-firm training for the knowledge economy. World Bank Policy Research Working Paper, No. 2957, World Back, Washington DC. Taylor, R. and Davies, D. (2004). Aspects of training and remuneration in the accommodation industry: A comparison between Australian and Singaporean providers. Journal of European Industrial Training, 28(6): 466‒473. Tregaskis, O. and Brewster, C. (2006). Converging or diverging? A comparative analysis of trends in contingent employment practice in Europe over a decade. Journal of International Business Studies, 37: 111‒126. Tregaskis, O., Heraty, N. and Morley, M. (2001). HRD in multinationals: The global/local mix. Human Resource Management Journal, 11(2): 34‒56. Tsang, E.W.K. (1994). Human resource management problems in Sino-foreign joint ventures. International Journal of Manpower, 15(9/10): 4‒21. Tung, R.L. (1981). Selection and training for personnel for overseas assignments. Columbia Journal of World Business, 16(1): 68‒78. Tung, R.L. (1988). American expatriates abroad: From neophytes to cosmopolitans. Journal of World Business, 33: 125‒144. Vo, A. (2009). Career development for host country nationals: A case of American and Japanese multinationals companies in Vietnam. International Journal of Human Resource Management, 20: 1402‒1420. Vo, A. and Hannif, Z. (2012). The transfer of training and development practices in Japanese subsidiaries in Vietnam. Asia Pacific Journal of Human Resource, 50: 75‒91. Vo, A. and Stanton, P. (2011). The transfer of HRM policies and practices to a transitional business system: The case of performance management practices in US and Japanese MNEs operating in Vietnam. International Journal of Human Resource Management, 22(17): 3513‒3527. Von Glinow, M.A. and Milliman, J. (1990). Developing strategic international human

GARAVAN 9781781954171 PRINT.indd 50

22/09/2017 16:31

IHRD in MNCs  ­51 resource management: Prescriptions for MNC success. CEO Publication G90-4 (166). Centre for Effective Organisations, Los Angeles. Wang, Y.L. and Tran, E. (2012). Effects of cross-cultural and language training on expatriates’ adjustment and job performance in Vietnam. Asia Pacific Journal of Human Relations, 50: 327‒350. Welch, D. (1994). Determinants of international human resource management approaches and activities: A suggested framework. Journal of Management Studies, 31(2): 139‒164. Werner, S. (2000). Recent developments in international management research: A review of 20 top management journals. Journal of Management, 28: 277‒305. Whitley, R. (1992). Societies, firms and markets: The social structuring of business systems. In R. Whitely (ed.), European Business System Firms and Markets in Their National Contexts. Thousand Oaks, CA: Sage Publications, pp. 5‒45. Wickham, J. (1989). The over educated engineer? The work, education and careers of Irish electronic engineers. IBAR Journal of Irish Business and Administrative Research, 10(2): 1‒33. Wong, C.S. and Law, K.S. (1999). Managing localisation of human resources in the PRC: A practical model. Journal of World Business, 34: 26‒40. Wood, E.D. (2011). Post-arrival Performance Interventions that Assist Expatriates’ Adjustment and Performance (PhD thesis). The College of Graduate and Professional Studies. Terre Haute, Indiana, Indiana State University. Wright, P.M., McMahan, G.C. and McWilliams, A. (1994). Human resources and sustained competitive advantage: A resource-based perspective. International Journal of Human Resource Management, 5(2): 301‒326. Zheng, C., Hyland, P. and Soosay, C. (2007). Training practices of multinational companies in Asia. Journal of European Industrial Training, 31(6): 472‒494.

GARAVAN 9781781954171 PRINT.indd 51

22/09/2017 16:31

3. IHRD in international non-governmental organisations, nonprofit and public sector Hussain Alhejji and Thomas Garavan

INTRODUCTION This chapter examines the dynamics of IHRD in international nongovernmental organisations (INGOs), nonprofit and public sector. Non-governmental organisations can be based locally, regionally, or internationally; however, we focus on INGOs that are international in scope and have outposts around the world to deal with environmental concerns (for example, Greenpeace), human rights concerns (for example, Amnesty International), or humanitarian health assistance (for example, Médecins Sans Frontières) (O’Sullivan, 2010). What distinguishes INGOs from nonprofit agencies is that they are governed, legitimised, and substantially funded by governments or the for-profit/market sector (Khan and Ali, 2015). The nonprofit sector (also called the voluntary sector, the third sector, and the philanthropic sector) refers to organisations that are not government or private for-profit organisations, including: charities, clubs, churches, trade unions, and many of those associations’ publicly owned services (von Eckardstein and Brandl, 2004). The public sector is composed of several different government organisations, which are owned and managed by the state and people (Pynes, 2008). The government provides security and stability, maintains a system of law and justice, and offers direction for national HRD policy formulation and implementation. Our focus on INGOs, nonprofit, and public organisations is needed in the field of IHRD for three main reasons. First, these three organisation types are similar in how they define themselves according to their objectives or the services they provide. These services are often intangible and difficult to measure (Padaki, 2007). Second, INGOs, nonprofit and public sector experience similar challenges, including limited access to resources, force competition, and the need for efficiency and service performance improvement (O’Sullivan, 2010). Third, these organisations represent communities and movements, political and social, and are largely international in all features of their HRD. Their HRD policies and practices are global, and their employees often come from diverse countries and cultures. Despite these similarities, the nature, motivations and capacity of 52

GARAVAN 9781781954171 PRINT.indd 52

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­53 each of these organisations and their subsequent use of HRD systems will vary, depending on environmental contexts and international interactions (Bartram, Hoye and Cavanagh, 2014). For example, Ridder, Baluch and Piening (2012) argued the nonprofit and for-profit sectors are fundamentally different, and consequently, one cannot assume that IHRD practices in one sector effectively translate to the other sector. We structured this chapter in three main sections. First, we will discuss the importance of examining INGOs, nonprofit and public organisations from an international HRD perspective, as well as review the literature in order to identify key debates and critiques of current IHRD systems in each sector. Second, we will outline the challenges and opportunities relevant to international HRD in these three sectors. Third, we will discuss the implications for IHRD research and practice. We propose that IHRD scholars must take a proactive step in supporting and guiding INGOs, nonprofit and public organisations’ efforts to meet the changing aspects of their internal and external environments.

IHRD IN INTERNATIONAL NON-GOVERNMENTAL ORGANISATIONS, NONPROFITS AND PUBLIC ORGANISATIONS In this section, we consider the IHRD issues that pertain to INGOs, nonprofit and public organisations. We describe the context of these three organisation types and explain the IHRD issues that emerge in each one. Table 3.1 provides an overview of the key characteristics of these different organisation types and sets out IHRD considerations in each. International Non-governmental Organisations INGOs represent various political and social interests: global environmental concerns, humanitarian health assistance, and international terrorism resistance. INGOs are very difficult to conceptualise because they have “complex geographical ranges and, in addition to being connected to one another, often are entangled with state or quasigovernmental agencies, as well as with businesses” (Roberts, Jones and Fröhling, 2005, p. 1845). Despite this complexity, INGOs have played a pivotal role in increasing global social expectations for business by influencing the perceptions of employees, consumers, investors, institutional actors, and other stakeholders (Egels-Zandén and Hyllman, 2006). O’Sullivan (2010) stated that INGOs have become powerful players in the global environment, particularly in the US and Canada, and their need for sophisticated training

GARAVAN 9781781954171 PRINT.indd 53

22/09/2017 16:31

54  Handbook of international human resource development Table 3.1 Key characteristics of different types of organisations and IHRD considerations Public

Nonprofit

International non-governmental

Meaning

The public sector is composed of a variety of organisations that are owned and operated by the government organisations

INGOs are a subset of NGOs, have formally associated in an international or global governance structure that operates autonomously of government

Area of  operation Objective(s)

Large

An organisation established to provide goods and services to people, which operates on the foundation that no member will receive share profit or losses of the entity Limited

To maintain a system of law, justice, and social organisation. It protects individual rights and freedoms, provides security and stability, and provides direction for the nation

To promote life through science, research, art, commerce, education or any other useful purpose

Involvement

Achieve more effective delivery of better public services both nationally and internationally

Organisational  structure

Public organisations have a variety of federal, state, and local government agencies

Nonprofits operate all over the world and in many different fields, including human services, arts and culture, health care, education, and civil rights Nonprofit include a diverse set of organisations, ranging from small, informal, community-based organisations to large profile

GARAVAN 9781781954171 PRINT.indd 54

Large To work for the betterment of society and economy, and, pursue activities at the global level to relieve suffering, promote the interests of poor, protect environmental and humanitarian issues or undertake community development Active in the efforts of international development and increasing the welfare of poor people in developing world

NGOs working through local partners across the developing world

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­55 Table 3.1  (continued) Public

Nonprofit

International non-governmental

Management  structure

Most government organisations are classic examples of vertical structures

INGOs vary very significantly in their structure and in the nature of their operation

Duration Funded

Permanent Local government

Different types of organisations within the sector have to be set up with the appropriate management structure. These organisations might take the form of Unincorporated association, Incorporated associations, Community Interest Companies and Charitable Incorporated Organisation Temporary Driven by volunteers and charitable

Patterns of  power Type of  employees

Coercive power

Normative power

Temporary Driven by volunteers, charitable and paternalistic or radical and ‘empowerment’-based Normative power

Permanent and part-time employees Yes Led by a range of entities, agencies, and institutions

Volunteers and unpaid employees

Volunteers and paid employees

No Professional managers in voluntary organisations are likely to be accountable to a number of interest groups ● Focus heavily on informal training ● Limited focus on leadership development

No Government, donor, internal governance and beneficiaries

Job stability Accountability

HRD context

GARAVAN 9781781954171 PRINT.indd 55

● Lack

use of training needs analysis ● Lack focus on retaining and

● Limited

use of leadership and global talent development

22/09/2017 16:31

56  Handbook of international human resource development Table 3.1  (continued)

Type of HRD

GARAVAN 9781781954171 PRINT.indd 56

Public

Nonprofit

International non-governmental

   developing

   programmes

● Lack

● Training

● Expatriate training ● Senior staff are

good talent at middle management levels ● Lack of effective strategies to address employees engagement, enablement and productivity ● Lack of staff reduction programme and cultural / behavioural issues ● Limited focus on global talent management strategy ● Bureaucracy and limited flexibility in HR policies has obstructed the engagement of IHRD ● HRD practices are not always determined by competence ● Leadership programme ● Internship programme ● Mentorship programme ● Cross-cultural awareness training

that help organisation to succeed in the future ● HRD practices originated from the private sector and often cultivated in the voluntary sector ● HRD practices based on performance is difficult to elaborate ● Skills gaps are apparent across the voluntary sector

manager initiatives ● Awareness-based training ● Mission-based training

of communication, up, down, sideways ● Lack of strategic IHRD focus ● Training is not good at addressing increasing international demands

more likely to receive training

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­57 Table 3.1  (continued)

IHRD  Evaluations

GARAVAN 9781781954171 PRINT.indd 57

Public

Nonprofit

International non-governmental

● Lack

● Limited

● Limited

of tools provided in the public service to measure training effectiveness ● Evaluation tools are not used to assess relevance of training to employee performance ● Impact assessment of training provided to achieve the strategic objectives of the departments and meeting the needs and expectations of stake­holders was thus not conducted ● Public organisations relied on questionnaires, with no actual on-the-job assessment of any improvement in the skills or the ability of the employee to do the work after such training

use of evaluation tools to measure training effectiveness

use of individualising development plans (i.e. assessment centres and 360 feedback instruments)

22/09/2017 16:31

58  Handbook of international human resource development and development has increased. Lambell et al. (2008) divided the objectives of INGOs organisations into service-based and advocacy-based. Service-based organisations include, for example, global social welfare or global humanitarian assistance on issues such as education, health, and training. Advocacy-based groups focus on aspects that directly impact people’s lives, such as public policy and resource-allocation decisions. Some of the advocacy strategies they undertake consist of lobbying local governments and organising governments, firms such as World Bank and the International Monetary Fund, and consumers. These strategies are starting to influence comprehensive initiatives on particular issues, such as education, human rights, and (broadly) the IHRD system. INGOs’ activ­ ities are also influencing institutional structure and changes in the public policy environment under which certain firms operate. The pressure of globalisation has made the interorganisational relationship in INGOs more complex and difficult to conceptualise analytically because of the density of potential connections (Roberts, Jones and Fröhling, 2005). Examining the role of HRD in INGOs, then, is fundamentally central. Globalisation has brought the assumption that for many INGOs’ missions, autonomous state action is inadequate (Russ-Eft and Hatcher, 2003). For example, Short and Callahan (2005) argued that the issue of increased international migration and ethnic conflict, producing enormous social tensions which have spread elsewhere, demonstrate that nation-states are not capable of resolving these challenges single-handedly. This provides the rationale for the establishment and development of global servants to support HRD solutions, not just at the national level but also in the international sphere, particularly in the case of INGOs. Regardless of their particular objectives, attention to INGOs has increased significantly as a result of the media (Padaki, 2007). This attention has promoted public awareness of global issues beyond both individual and community needs and the growing power and influence of business itself. INGOs involvement within intergovernmental organisations from the World Trade Organization to the UN has drawn scholars’ attention (Alagaraja and Wang, 2012). INGOs have taken an active part in creating a wider global social and organisational awareness of educational as well as support organisations in research and environmental protection. Despite their major objectives, INGOs have been relatively under-researched within the IHRD arena and they remain significantly less well understood than for-profit organisations (Bartram, Hoye and Cavanagh, 2014, Khan and Ali, 2015). As the mission of INGOs has expanded to solve multinational problems, Chang (2005) argued that the current literature has not systematically discussed how INGOs design and

GARAVAN 9781781954171 PRINT.indd 58

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­59 evaluate training practices that are implemented to prepare people who devoted themselves to work in underdeveloped foreign countries. The current IHRD literature on INGOs has shown that training interventions are generally adequate because of the values and mission they emphasise. Short and Callahan (2005) highlighted that training interventions implemented in INGOs showed positive outcomes among global civil society and in democratisation, particularly with disadvantaged citizens. However, Chang (2005) argued that in order to maintain these positive outcomes, policy-makers and HRD practitioners should consider the historical and geographic contexts in the local area (for example, national culture and local institutions) to better understand the role of INGOs and their possible contributions to the local socio-economic environments. With regard to training types, O’Sullivan (2010) found that orientation training for new employees was largely discussed in the HRD literature, as well as recommendations for different training methods for employees at entry, managerial and senior levels. Chang (2005) indicated that INGOs invest heavily in volunteer training as a means to enhance volunteers’ skills and knowledge for their mission. Several studies (for example, Padaki, 2007, Razvi and Roth, 2010) additionally noted evidence of the increased use of informal training methods in INGOs aimed at enhancing the cultural aspects of organisational development programmes. These informal trainings were designed as a global career network to mix employees from different locations around the world. The increased need for flexibility led INGOs to favour informal training as a substitute for classroom-style courses which provide the opportunity for employees from different areas to get to know one another in an off-site situation. In terms of expatriate training, research suggests that culture is a prominent factor that would influence HRD in INGOs for several reasons (Lambell et al., 2008). First, INGOs are established in international contexts where their missions require cross-cultural interactions. Second, as most INGOs aim to provide humanitarian assistance, cultural factors would influence both the internal and external activities where they operate. Third, INGOs rely on expatriates to provide services; having appropriate cross-cultural training is important to adjust them to different national contexts. In this vein, Anderson (2001) has examined the use of pre-departure cross-cultural training for missionary expatriates. However, his study offered limited information regarding the training methods and evaluation process undertaken in his study. Generally, the IHRD literature that addresses expatriate training in INGOs is scarce compared to the IHRD literature on for-profit organisations. Research on INGOs’ interventions within developing countries has received some attention among IHRD scholars, particularly in relation

GARAVAN 9781781954171 PRINT.indd 59

22/09/2017 16:31

60  Handbook of international human resource development to their role in supporting developing countries through HRD practices (Razvi and Roth, 2010). Khan and Ali (2014), for instance, investigate the effects of international organisations’ socio-economic and training programmes during natural disasters in Bangladesh. Results revealed the significant role training programmes played in helping the international organisations’ beneficiaries to protect themselves against vulnerability. Their findings support the claim made by Buckley (2002), who stated that HRD interventions have critical roles in preventing multinational issues as a response to the growing role of INGOs within the international community. While IHRD scholars have suggested that training and development practices can improve social and organisational efficiency, the increasing global focus of INGOs has highlighted that more non-governmental frameworks are needed to account better for the rise of third sector or society actors. Nonprofit Organisations The definition of nonprofit organisations has been largely discussed in the literature (Rodwell and Teo, 2004), yet there is still a lack of consensus among academic scholars and practitioners. In a review of the practitioner-oriented literature pertaining to nonprofit organisations, Pynes (2008) highlighted three features of nonprofit organisations: (1) It is usually designated as a nonprofit when established; (2) it may not distribute profits or capital among shareholders such as managers, officers, or the founders in the manner of business dividends; and (3) It may lawfully act to reach such objectives as are permitted for the organisation, dependant on status. According to the above characteristics, one might assume that nonprofit organisations are not banned from obtaining a profit, but their status depends on what is done with the profit obtained or otherwise received (Ridder, Baluch and Piening, 2012). In fact, some nonprofit organisations have attempted to adapt a for-profit strategy approach, to respond to a highly competitive environment that is characterised by increasing demands for efficiency, growing competition for contracts with public and for-profit organisations, declining government and volunteer support, and weakening employee commitment (Bartram, Hoye and Cavanagh, 2014). However, these attempts have been criticised for being ineffective in achieving nonprofit organisations’ missions. For example, Kong (2008) argued that the primary objective of nonprofit organisations is to invest in people rather than to profit. For-profit strategic management techniques are arguably compromising the principle of investing in human and social concerns.

GARAVAN 9781781954171 PRINT.indd 60

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­61 Another attempt has been made to distinguish nonprofit organisations from government organisations (Pynes, 2008). Nonprofit organisations, compared to public sector organisations, are more flexible in responding to social needs, are less bureaucratic in management style, and can quickly experiment with new practices. According to von Eckardstein and Brandl (2004), public organisations often financially support nonprofit organisations to enact specific programmes, particularly if these programmes are controversial and may cause public debate. Governments have some influence among nonprofit agencies that receive public funds but can quickly dismiss themselves from controversial programmes when things do not go as expected. Nonprofit organisations often provide services that are too expensive to be offered on a for-profit basis, and governments sometimes rely on nonprofit agencies to provide health, environmental, and human development services. Examples of those services include: domestic abuse prevention programmes, programmes that support disabled and elderly people, community and neighbourhood centres, and vocational training and development initiatives (Bromley and Meyer, 2014). The relationship between government and nonprofit organisations has been long established, as most nonprofit services depend on government funds and technical support. According to the US-based Urban Institute, the difficulty of dedicating human resources to adopting best practices in volunteer management was the greatest challenge facing charities (Butrica, Johnson and Zedlewski, 2007). The report further concluded that training employees on how to deal with volunteers may overcome some important issues (such as recruiting volunteers during working hours). Likewise, in a study of the charity retail industry, Stirling, Kilpatrick and Orpin (2011) proposes that managers should possess communication, volunteer management, and entrepreneurship skills, to promote the innovative and creative use of limited resources. Cornforth (2001), additionally, examined HRM issues in nonprofit organisations and pointed out that the skills of board members are a critical element in enhancing organisational effectiveness. In light of this tendency to manage the dual pressures mentioned above, HRD is considered to play a critical role in enhancing the performance of nonprofit organisations (Ridder, Baluch and Piening, 2012). As humans are viewed as strategically important assets, investment in HRD that enhances employees’ skills and knowledge is seen as critical to overcoming the current challenges facing nonprofit organisations. This argument emphasises the importance of investing in training and development activities to allow employees to be more innovative. HRD practices in nonprofit organisations adopt many interventions developed among for-profit organisations. HRD scholars have proposed

GARAVAN 9781781954171 PRINT.indd 61

22/09/2017 16:31

62  Handbook of international human resource development that such interventions in profit and volunteer organisations should be equivalent: The standard and procedures for nonprofits should be as rigid as those for businesses (Chang, 2005). Other scholars, however, have indicated that variances should be considered between the two types of organisations. This is because there are inherent differences between paid employees and volunteers, as well as structural differences, such as volunteer support from volunteer coordinators in nonprofits. Besides, nonprofit organisations, compared to for-profit organisations, have limited budgets to perform HRD interventions. Instead, informal training events are often sponsored by a group of neighbouring volunteer organisations (Nilsson and Ellström, 2012). Akingbola (2006) argued there are three main perspectives that make HRD a critical function in nonprofit organisations. First, the nature of services that are provided by nonprofit organisations prevents them from replacing employees with investment in physical capital. In other words, the employees are the services, and they are the most vital asset in such organisations. Second, employees of nonprofits are often recruited based on shared values and beliefs, particularly belief in the organisation’s mission. In this context, where employees’ social values and expectations influence the strategic goals of nonprofit organisations, HRD practices are of high importance. Third, nonprofit organisations are heavily reliant on their employees to deliver a professional service and are regularly held accountable for new funds. HRD systems have critical roles to play in such organisations. In terms of training design, Cunningham (2001) studied the training culture in 143 nonprofit organisations in the UK and found that nearly two-thirds focus on management training initiatives. In Canadian nonprofit organisations, Akingbola (2006) highlighted that two common trainings are widely adopted: awareness-based and mission-based training. Awareness-based training focuses on promoting employees’ awareness regarding actualising values and ethics. Mission-based training focuses on spreading the organisation’s mission across all individuals within the organisation. These two types of training, however, tend to be informal, with less emphasis on internal development of strategic HRD. Beyond this introductory requirement for HRD in nonprofit, the need to be creative, innovative, adaptable, and strategic in the era of limited government funding is crucial. As is the case for for-profit organisations, this adaptability makes nonprofits competitive in the search for new funding sources. HRD scholars argued that continuous learning is the main driver of innovation, which eventually leads to new skills requirements (von Eckardstein and Brandl, 2004). Overall, Birdi, Patterson and Wood (2007) argued that one cannot assume the average of training hours spent

GARAVAN 9781781954171 PRINT.indd 62

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­63 between nonprofit and for-profit organisations because comparative data is limited. In spite of the above discussion, the literature shows evidence that HRD practices are being implemented in nonprofit organisations. However, the current literature on nonprofit organisations has done little to advance HRD concepts or practices (Ridder, Baluch and Piening, 2012). It is difficult to find an agreed-upon definition or delimitation of nonprofit organisations. None of the above studies yields much new insight into what a nonprofit is, or how it should be structured. In addition, studies examining HRD in nonprofit organisations mainly focus on exploring the practices undertaken, with major focus on the recruitment and retention of volunteer workers (Bartram, Hoye and Cavanagh, 2014). There is limited overall understanding of how the various aspects of HRD policies and practices are implemented and evaluated in nonprofit organisations. In general, managing HRD in nonprofit organisations has become much more complex, and their ability to pursue charitable activities is threatened. Public Sector The profile of management in the public sector proposes that HRD is a major influence in public sector changes. This is because employees’ expectations and aspirations have changed dramatically as a result of the environmental flux in which they work. There is evidence that the traditional career structure of bureaucratic public organisations is no longer attractive to the younger generation or professional specialists (Bartlett, 2002). The way in which institutional structure, policy, and organisational changes influence public sector management style and the conditions of service is emphasised. While changes to the talent gap and increased employee and global demands to the public sector have had major influence on HRD systems, as well as the conditions under which organisations respond to these challenges (Treiber et al., 2013), limited attention has been given to the global approach of HRD in relation to the public sector (Mau, 2015). Traditionally, the application of HRD systems within the public sector displaced the general belief that public organisations offer poor training and development activities in terms of quality of service, and are considerably less capable (compared to the private sector) of adapting to current environmental changes (Khandelwal, 2007). Within this traditional view, training and development were an important function in personal management, and were “subjected to a bureaucratization of procedures to ensure that decisions and actions were consistent, formalized and s­ ystematically

GARAVAN 9781781954171 PRINT.indd 63

22/09/2017 16:31

64  Handbook of international human resource development addressed activities through a pre-defined application of rules and processes” (Brown, 2004, p. 306). This bureaucratisation included specialisation through functional responsibility; formalised rules and instructions; and a reliance on organisational position to attain legitimacy and, generally, career advancement (Pynes, 2008). Training and development, according to Bartlett (2002), were highly centralised and led by powerful actors that were in charge for all decision-making processes. More recently, in most developed countries there has been a dramatic shift in the public sector sphere towards a more competitive focus to enable efficiency and effectiveness outcomes (Garavan and McGuire, 2010). New Public Management (NPM) is based on the delivery of performance-related incentives to public workers and emphasises an M-form of organisational design, rather than a hierarchical structure. It increases innovation as well as local and global competition among public managers. NPM is an international or even global phenomenon, as it represents an attempt to overcome the efficiency and service delivery issues of traditional public organisations (Schraeder, Tears and Jordan, 2005). NPM grew from the assumption that organisational success depends largely upon the exploitation of human assets. Khandelwal (2007) mentioned that the NPM focus has provided strong rationale for public organisations to broadly explore the HRD perspective, rather than only focusing on training and development activities, in order to foster high-performing individuals, teams, and organisations. Other scholars argue that the NPM approach mirrors the arguments proposed in the resources-based view and the human capital theory, which are both largely focused on for-profit organisations. There may turn out to be some differences in the implementation of strategic HRD in both public and nonprofit organisations. Pynes (2008) revealed that there have been challenges of HRD reforms in the public sector, mainly because of the double bind that is raised by reform attempts: civil servants are supposed to commit themselves to modernising the public sector, while at the same time being asked to submit themselves to centralised and rigid HRD processes. Indeed, as public organisations are under continuous pressure to achieve sustainable development, public leaders and institutional actors are also confronted with this dual challenge to create an international HRD focus. This tension is currently inspired by opposing values and expectations and so, like the private sector, may eventually lead the HRM and HRD departments to be more market oriented than publicly traded (Alagaraja and Wang, 2012). The internationalisation of management practices in the public sector has also created more research and academic inquiry regarding the issue of international HRD. The elimination of trade barriers and the inception

GARAVAN 9781781954171 PRINT.indd 64

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­65 of the European single market have brought about increasing imperatives for internationalisation. Within the public sector, Ohemeng (2010, p. 460) defined internationalisation as “the movement of public management practices from one national political/social system to another”. Khandelwal (2007) argued that developing countries should not attempt to imitate any of the reforms that were being implemented in the developed continuum. This is because developing countries experience multiple socio-economic and political environments and are characterised by informal markets as well as a lack of formalised HRD system (Baek and Kim, 2014). Thus, applying HRD policies and practices that are taking place in developing countries would “be fraught with hazards” (Ohemeng, 2010, p. 457). The literature has failed to create a holistic framework to examine the cause and manifestation of the failures in comparative study (Alagaraja and Wang, 2012). Advocates of the NPM believe that adopting this model is necessary if developing countries are to overcome issues that impact their HRD system in order to adequately address the demands of the global economy. To fully benefit from the NPM reform, developing countries must establish suitable institutional frameworks that will enable them to adapt an HRD system to the traditional model of personnel management. Nowadays, many developing countries have experimented with a variety of these reforms, giving them a critical role in their public management globalisation or internationalisation agendas. Aid agencies which provide international development assistance, as well as the governments of the developing countries, offer support to HRD reform efforts (Mau, 2015). The adoption of these models has led to the argument of policy convergence, which restricts state influence as the models apply to both developing and developed countries. This has led to a one-size-fits-all approach to public sector frameworks (Ohemeng, 2010). The result of these models’ adoptions is the introduction of managerialism as a solution to the issues that are facing public organisations. Within the managerialism reform, public organisations in most developed countries have attempted to impose a narrow, rational, and marketoriented model of management (Treiber et al., 2013). Yet most public organisations have not been successful in this endeavour (Bartlett, 2002; Pynes, 2008). Boyne, Poole and Jenkins (2002) argue that the failure of managerialism was related to the fact that most public organisations were not extensively developing and retaining leaders to meet the new demands they faced. The emphasis on leadership development in this model was not sophisticated (Mau, 2015), as IHRD scholars now claim that leaders are more capable of bringing about transformative change that focuses on the democratic dimensions of public service.

GARAVAN 9781781954171 PRINT.indd 65

22/09/2017 16:31

66  Handbook of international human resource development

INTERNATIONAL NON-GOVERNMENTAL ORGANISATIONS, NONPROFIT AND PUBLIC ORGANISATIONS: IHRD CHALLENGES AND OPPORTUNITIES INGOs, nonprofit and public organisations are still facing major changes in their internal and external environments which have impacted their HRD strategies. There is considerable debate about their ability to identify and deal effectively with those changes, particularly with the increased pressure of globalisation and a knowledge-based economy (Roberts, Jones and Fröhling, 2005). The declines of the Cold War, and the increased number of migrants, have laid the foundation for civil wars and human­ itarian issues (Lambell et al., 2008). Global economic changes have created economic gaps as well as changes in the depth of poverty in most countries. Government and volunteer organisations have limited abilities to respond with new social initiatives. Public organisations, for instance, are now challenged by freeing themselves from hierarchical organisational structures which are unresponsive to environmental change (Ohemeng, 2010). In INGOs, the need for greater mobility becomes essential with the rise of international business. These organisations must be changed to cope with globalisation and neo-liberalism. Globalisation has forced organisations to largely consider a new direction and, in so doing, change the way they manage IHRD systems. To remain in this highly competitive environment, IHRD scholars argue that organisations are required to adopt more complex multidimensional strategic objectives, imbued with the contradictory tensions of efficiency, responsiveness, and innovation (Garavan and McGuire, 2010). Globalisation and migration have also resulted in significant demographic shifts in the workforce. The increased employment of women, racial and ethnic minorities, people with disabilities, and people from different cultural and linguistic backgrounds has dramatically impacted the demographics of the workforce (Pynes, 2008). The increased number of diverse employees represents more challenges and opportunities for INGOs, nonprofit and public organisations. Thus, organisations have implemented policies and practices to effectively manage diversity. Diversity training has become one of the most widely used programmes in organisations. One issue these programmes encounter is related to diversity paradigms: business versus social justice. Although HRD scholars have attempted to provide a more holistic set of perspectives to understand diversity training in organisations (Alhejji et al., 2016a), the business and social justice approaches in the public and voluntary sectors can be considered more complementary than competing, due to the nature of social justice

GARAVAN 9781781954171 PRINT.indd 66

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­67 targets in these sectors (Weisinger, Borges-Méndez and Milofsky, 2016). Another contemporary challenge to diversity paradigms is related to the philosophical underpinnings of the diversity approach. Tomlinson and Schwabenland (2010) argued that diversity in the voluntary sector is seen as a moral imperative to address social and organisational injustice. Thus, political representation and expression is an important part of the social movement that should allow organisational members to freely express and develop themselves; however, these discourses are not often included in the diversity paradigms. As diversity issues are contextually embedded, many approaches in diversity training encounter issues in the IHRD field. To improve, HRD practitioners should deeply understand the historical organisational context as well as short-term standardised approaches. In addition, although some organisations have shifted their views to emphasise that affirmative action and equal employment opportunity legislation are no longer necessary, recent contextual challenges seem to be emerging. These challenges are related to the issue of transformations in the labour force. At the national level, minorities are likely to seek jobs in the nonprofit sector and often show a greater interest in securing employment opportunities in the public or private sectors (Claus, Callahan and Sandlin, 2013). At the international level, minorities might move to different sectors and/or countries looking for challenging work and the opportunity to learn new skills and knowledge (Alhejji, Garavan and Carbery, 2016b). The global circulations of skilled talent and expanded immigration have led minorities to become the majority of both workers and customers. These transformations are changing the social distribution, and hence presenting new challenges to IHRD scholars and practitioners regarding the retention of talent (Nilsson and Ellström, 2012). In this context, HRD practitioners need to develop international talent management strategies that take the form of different policies and practices for the attraction, retention and promotion of diverse talent. These strategies should focus on the best use of all the possibilities and potential of internal talent, while resorting to external hiring in the case of so-called volunteers. The issue of transformations is also considered one of the most important drivers of the global talent shortage (Ingraham and Getha-Taylor, 2005). While in developed countries there is noticeable aging in the overall population, developing countries have an increasingly young population. Today organisations often face a number of generations of employees with different needs and career objectives working together in a team: trad­ itionalists (born between 1920 and 1945), baby boomers (born between 1945 and 1964), Generation Xers (born between 1965 and 1980), and millennials (born between 1981 and 2000) (Pynes, 2008). Each generation has different learning styles and training needs, and working with ­multiple

GARAVAN 9781781954171 PRINT.indd 67

22/09/2017 16:31

68  Handbook of international human resource development groups requires more flexible policies for talent, staff and diversity management. According to Garavan (2007), the profile of millennials in developed countries characterises them as having little loyalty and low levels of commitment. However, they consider learning and development to be the best incentives a company can offer to them, and they value professional progression greatly. The retirement of traditionalists and baby boomers has created more challenges to international talent management as INGOs, nonprofit, and public organisations need to ensure that local and/or international employees who pick up skills and knowledge from their retiring peers can be retained. The lack of knowledge transfer from the retiring workforce to newcomers has led to ‘knowledge gaps’ (Brown, 2004). IHRD practitioners should focus on developing strategies that enhance knowledge transfer from retiring to incoming generations. Such initiatives might take the form of coaching on how to share knowledge. Given the above discussion, managing talent seems to be a very crit­ ical issue facing IHRD in INGOs, nonprofit and public organisations. Khandelwal (2007) stated that young specialists are more attracted by dynamic work for private companies rather than non-creative jobs in public organisations. According to the Organisation for Economic Co-operation and Development (OECD, 2006), the average number of years people are likely to remain with one employer is around thirteen in Canada, the US, the UK, the Netherlands, and Australia, while the average in France, Germany, and Japan is about twenty-two years. The trends in the US and the UK suggest that this average length of time is likely to decline significantly as fewer employees are offered permanent jobs. The downward trend, in addition, reflected the change in organisational structure in which qualified professionals and managers are supported by contract specialists and flexible workforces of part-time and temporary employees. The downsizing of managerial employees in many organisations has also required line managers to master communication and critical skills as well as their practical skills (Weisinger, Borges-Méndez and Milofsky, 2016). Top managers must improve their skills in order to understand the external changes, at both national and international levels, and to develop strategic HRD objectives. Thus, INGOs, nonprofit, and public organisations need to modify their organisational cultures to align with environmental exigencies in order to reduce talent turnover. The current economy has added more pressure to IHRD in INGOs, nonprofit, and public organisations. Not only does it impact the talent pool, but it might impact organisations in managing and developing talent. According to the human capital theory, employees’ capabilities – such as knowledge, skills and health – are considered a critical part of the capital of a country. In this vein, Wang and Swanson (2008) characterised HRD

GARAVAN 9781781954171 PRINT.indd 68

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­69 as a multidisciplinary area of research, where they considered economics a crucial area that contributes to the theoretical framework of HRD. Zidan (2001, p. 439) further developed an inclusive framework where he outlines the confluence of organisational strategy and governmental economic development policy, “where the decisions are both based in part on issues of efficiency and cost-effectiveness”. There is still, however, a limited understanding of how the global economy may affect IHRD systems in INGOs, nonprofit, and public organisations. Nowadays, the dramatic changes in the international economy impact all national economies. This is because the integration of the global economies represents a critical influence on national economies, where agencies operate (Wang and Swanson, 2008). For example, any recession or growth in a country which plays an important part in the world economy might stimulate the same conditions in other economies. Therefore, whether HRD systems in INGOs, nonprofit, and public organisations would change for positive or negative depends on the international world economy. Khan and Ali (2014) revealed that the unstable terms of the world economy have not only affected the public organisations level of investment in HRD initiatives, but also create more challenges when balancing market demands and employees’ needs to promote their skills and knowledge. A further issue has been linked to funding opportunities, particularly for nonprofits and INGOs. Organisations from the voluntary sector are under pressure to improve their effectiveness and their quality and standards of service. These organisations are also facing greater accountability and transparency over how they utilise their money to meet regulatory standards. The fundraising event, according to Rodwell and Teo (2004), has become much more professionalised and competitive. In addition, the influence of the International Financial Institutions (IFIs) was noticeable among INGOs, nonprofit, and public organisations. Their influence has arisen from the agencies’ lack of resources, particularly financial and human, and the fact that the IFIs funded (and continue to fund) programmes for reform. The effect of this influence was that independence of action – in other words, the ability of sovereign governments to independently formulate and implement their own policies – was severely compromised (Zidan, 2001). In short, the reform process was deeply penetrated by these external institutions and by the donor community in general. Consequently, the reforms did not in any way empower their agents, that is, the bureaucrats that were supposed to have been in the forefront, especially at the micro-level. Despite all the above arguments, the applicability of international HRD to INGOs, nonprofit, and public organisations has started to increase

GARAVAN 9781781954171 PRINT.indd 69

22/09/2017 16:31

70  Handbook of international human resource development in recent years. These organisations need to identify, hire, train, and develop employees; establish an effective incentives strategy; set conditions of employment; and develop a coherent set of employment policies. However, as organisations focus on public or global interests outcomes rather than private interests, this shift may add a layer of complexity that does not easily fit with IHRD as a strategic partner in achieving social objectives. Kong (2008) noted that although new talent management strategies in the public and volunteer sectors have been implemented, organisations are caught between the demands for long-term strategy and a short-lived political cycle. INGOs, nonprofit and public organisations are threatened with recent cuts in government subsidies and reductions in skilled staff which increase the demands towards more performance-related management to manage their HRD systems (Akingbola, 2006). Calls for focus on HRD efficiency have emerged, as INGOs, nonprofit and public organisations need to improve their individual and organisational performance while spending fewer resources (Treiber et al., 2013). In light of this trend towards a more market-oriented focus, HRD practitioners need to manage such complexity when designing training and development initiatives that align with the market-oriented focus, while at the same time aiming to achieve the social mission. Strategic IHRD is a recent area that has emerged in INGOs, nonprofit, and public organisations. Recently, managers at INGOs, nonprofit and public organisations have come to realise that HRD strategy could overcome most of the challenges they are currently facing, influenced by the climate of globalisation. Garavan (2007) argued that organisations in different national contexts must use strategic HRD systems to improve the skills and knowledge of their employees to cope with local and international demands, and consequently to improve organisational performance. They must also seek more ways to meet the local and international expectations of clients, funders, boards of directors, institutional actors, international associations, and the media. Although research literature on INGOs, nonprofit and public organisations is increasingly acknowledging the need for HRD strategy to cope with the global environmental changes, the connection between IHRD and strategy has not been reached in the literature. Organisations that aim to provide high-quality services must plan IHRD strategies to maximise the potential of their workforce. Therefore, IHRD can provide an integral and overarching view of international development work. It has been argued that failure to change the culture of INGOs, nonprofit, and public organisations may lead to more pressure from the external environment. HRD’s role, thus, is to enable employees and managers

GARAVAN 9781781954171 PRINT.indd 70

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­71 to understand how to utilise training to change organisational culture. In the light of this, Schraeder, Tears and Jordan (2005) outlined that these three organisational structures can overcome some of the challenges by promoting cultural change through training. Authors outlined how training can be a possible strategy for instigating cultural change. INGOs, nonprofit and public organisations need to adopt new organisational cultures to remain aligned with the external environment (for example, changes in international laws, migration, global competition, and so on) Such change cannot be accomplished without a set of training initiatives. HRD research has widely shown that training is one of the most effective strategies in promoting cultural change. For example, the total quality management (TQM) initiatives can change values, beliefs and certain structures within an organisation. This is an important step to consider in overcoming the challenges that INGOs, nonprofit, and public organisations face in today’s global marketplace.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE INGOs, nonprofit and public organisations deal with the many challenges that inevitably arise during the implementation of HRD practices, as well as the additional impact those challenges may impose on individual, team, organisational and overall society outcomes. There is also little known about how these organisations deal with the emphasis on conforming to highly competitive environmental changes along with the limited resources that represent a major challenge to IHRD in INGOs, nonprofit, and public organisations. Much of the IHRD work is conducted in forprofit organisations, which suggests a possible central role for IHRD in other sectors. With respect to the implication for IHRD, it might be useful to focus on the following issues: (1) Improving the skills and competencies of employees and management. Recent studies have demonstrated the need for ongoing training and development activities for managers and senior leaders to address their skills and knowledge gaps. Hence, IHRD practitioners need to recognise the emerging required skills and competencies, as well as new ways of delivering these activities to employees, managers, and leaders. As more organisations nowadays are focusing on volunteer, part-time, and unpaid workers, there might be a need to emphasise ‘off-the-job’ training more than on-the-job training. (2)  The modern models of HRD in INGOs, nonprofit and public

GARAVAN 9781781954171 PRINT.indd 71

22/09/2017 16:31

72  Handbook of international human resource development ­ rganisations represent a view of human resources efficiency and o enable those organisations to achieve high performance congruent with the HRD objectives (Garavan and McGuire, 2010). Traditional methods of succession planning are problematic, for example, when recruiting a tenant representative from the community. The implication of all this is that HRD practitioners will need to be innovative in their approach to identifying, recruiting, and nurturing external people into management roles. In addition, the traditional modes of training and development might be problematic when applied to younger generations of professionals, particularly millennials. IHRD practitioners need to consider alternative and innovative ways of designing and implementing training programmes to be aligned with the internal and external demands. There is also a need to enhance managers’ skills in coaching and mentoring strategies, to overcome the lack of appropriate role models in today’s globalised environments. (3) One specific characteristic of nonprofit organisations is their reliance on volunteers for the fulfilment of their activities or for their management duties. In such contexts, HRD practitioners need to outline how volunteers can be supported and developed, as they are expected to contribute to the organisation’s strategic objectives. Volunteers need training practices that allow them to understand and appreciate the importance of relational practices when managing volunteer initiatives and organisations can use the psychological contract as a framework for enhancing satisfaction and performance (see Stirling, Kilpatrick and Orpin, 2011). (4) IHRD research is required to examine leadership and management learning across partner organisations in different national contexts and to evaluate the extent to which new technical and managerial knowledge can be appropriated. New ways of thinking can be encouraged within organisations to achieve knowledge transfer from retiring employees to incoming millennial employees, and to achieve organisational development that contributes to sustainable growth. (5) HRD research suggests that enhancing social networks among individuals is very important to maximise performance. The HRD literature highlighted a number of social activities, such as bringing people together, building communities of practices, helping employees gain access to social networks and creating counselling social networks, that have been implemented in some organisations to facilitate learning and increase retention. Research found that relational management styles are vital to volunteers, as feeling appreciated and respected are strong relational volunteer expectations (Stirling,

GARAVAN 9781781954171 PRINT.indd 72

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­73 Kilpatrick and Orpin, 2011). IHRD practitioners should consider instituting some of these events to promote the culture of learning in INGOs, nonprofit and public organisations.

CONCLUSION This chapter explored IHRD within INGOs, nonprofit and public organ­ isations. These organisations represent unique contexts within which to study IHRD. They are multi-stakeholder organisations and their objectives are nonprofit in orientation. Therefore, the purposes of IHRD are to enhance organisation efficiency and capacity to deliver services to their clients. INGOs, nonprofit and public organisations are recognised throughout the world as unique cases that have experienced several different features in their adoption and implementation of IHRD systems. However, they have to date been given less consideration in the IHRD literature and this lack of attention represents major gaps in theory and practice (Baek and Kim, 2014, Rusaw and Rusaw, 2008). A greater awareness of the development of IHRD policies and practices in global environments and a greater responsiveness to such development might help to improve the work of INGOs, nonprofit and public organisations. Employees’ abilities to solve problems, make decisions, and master leadership, technical, entrepreneurial, and soft skills result from human resources development (HRD) practices.

REFERENCES Akingbola, K. 2006. Strategy and HRM in nonprofit organizations: Evidence from Canada. The International Journal of Human Resource Management, 17(10), 1707‒1725. Alagaraja, M. and Wang, J. 2012. Development of a national HRD strategy model cases of India and China. Human Resource Development Review, 11(4), 407‒429. Alhejji, H., Garavan, T., Carbery, R., O’Brien, F. and McGuire, D. 2016a. Diversity training programme outcomes: A systematic review. Human Resource Development Quarterly, 27(1), 95‒149. Alhejji, H., Ng, E.S., Garavan, T. and Carbery, R. 2016b. The impact of formal and informal distance on gender equality approaches: The case of a British MNC in Saudi Arabia. Thunderbird International Business Review, doi: 10.1002/tie.21828. Anderson, B. 2001. Expatriate management: An Australian tri-sector comparative study. Thunderbird International Business Review, 43(1), 33–50. Baek, P. and Kim, N. 2014. Exploring a theoretical foundation for HRD in society: Toward a model of stakeholder-based HRD. Human Resource Development International, 17(5), 499‒513. Bartlett, K.R. 2002. An examination of the role of HRD in voluntary turnover in public service organizations. Performance Improvement Quarterly, 15(4), 45‒56. Bartram, T., Hoye, R. and Cavanagh, J.M. 2014. Special issue on human resource

GARAVAN 9781781954171 PRINT.indd 73

22/09/2017 16:31

74  Handbook of international human resource development ­ anagement in the NGO, volunteer and not-for-profit sector. The International Journal of m Human Resource Management, 25(22), 3178‒3180. Birdi, K.S., Patterson, M.G. and Wood, S.J. 2007. Learning to perform? A comparison of learning practices and organizational performance in profit-and non-profit-making sectors in the UK. International Journal of Training and Development, 11(4), 265‒281. Boyne, G., Poole, M. and Jenkins, G. 2002. Human resource management in the public and private sectors: An empirical comparison. Public Administration, 77(2), 407‒420. Bromley, P. and Meyer, J.W. 2014. ‘They are all organizations’ the cultural roots of blurring between the nonprofit, business, and government sectors. Administration & Society, doi:0095399714548268. Brown, K. 2004. Human resource management in the public sector. Public Management Review, 6(3), 303‒309. Buckley, P.J. 2002. Is the international business research agenda running out of steam? Journal of International Business Studies, 33(2), 365‒373. Butrica, B.A., Johnson, R.W. and Zedlewski, S.R. 2007. Volunteer transitions among older Americans. Washington, DC: The Urban Institute. Retirement Project Discussion Paper, 07-06. Chang, W.-W. 2005. Expatriate training in international nongovernmental organizations: A model for research. Human Resource Development Review, 4(4), 440‒461. Claus, V.A., Callahan, J. and Sandlin, J.R. 2013. Culture and leadership: Women in nonprofit and for-profit leadership positions within the European Union. Human Resource Development International, 16(3), 330‒345. Cornforth, C. 2001. What makes boards effective? An examination of the relationships between board inputs, structures, processes and effectiveness in non-profit organisations. Corporate Governance: An International Review, 9(3), 217‒227. Cunningham, I. 2001. Sweet charity! Managing employee commitment in the UK voluntary sector. Employee Relations, 23(3), 226‒240. Egels-Zandén, N. and Hyllman, P. 2006. Exploring the effects of union–NGO relationships on corporate responsibility: The case of the Swedish clean clothes campaign. Journal of Business Ethics, 64(3), 303‒316. Garavan, T.N. 2007. A strategic perspective on human resource development. Advances in Developing Human Resources, 9(1), 11‒30. Garavan, T.N. and McGuire, D. 2010. Human resource development and society: Human resource development’s role in embedding corporate social responsibility, sustainability, and ethics in organizations. Advances in Developing Human Resources, 12(5), 487‒507. Ingraham, P.W. and Getha-Taylor, H. 2005. Common sense, competence, and talent in the public service in the USA: Finding the right mix in a complex world. Public Administration, 83(4), 789‒803. Khan, M.A. and Ali, A.J. 2014. The role of training in reducing poverty: The case of the ultra-poor in Bangladesh. International Journal of Training and Development, 18(4), 271–281. Khan, M.A. and Ali, A.J. 2015. Do non-governmental organisations’ socio-economic and training programmes improve disaster prevention capacity of their beneficiaries? International Social Work, 58(4), 401‒420. Khandelwal, A.K. 2007. Moving HRD from the periphery to the centre for transformation of an Indian public sector bank: Keynote address, 4th Asian conference of the academy of HRD. Human Resource Development International, 10(2), 203‒213. Kong, E. 2008. The development of strategic management in the non-profit context: Intellectual capital in social service non-profit organizations. International Journal of Management Reviews, 10(3), 281‒299. Lambell, R., Ramia, G., Nyland, C. and Michelotti, M. 2008. NGOs and international business research: Progress, prospects and problems. International Journal of Management Reviews, 10(1), 75‒92. Mau, T.A. 2015. Leadership competencies for a global public service. International Review of Administrative Sciences, doi:0020852315576706.

GARAVAN 9781781954171 PRINT.indd 74

22/09/2017 16:31

IHRD in INGOs, nonprofit and public sector  ­75 Nilsson, S. and Ellström, P.E. 2012. Employability and talent management: Challenges for HRD practices. European Journal of Training and Development, 36(1), 26‒45. O’Sullivan, S.L. 2010. International human resource management challenges in Canadian development INGOs. European Management Journal, 28(6), 421‒440. Ohemeng, F. 2010. The dangers of internationalization and ‘one-size-fits-all’ in public sector management: Lessons from performance management policies in Ontario and Ghana. International Journal of Public Sector Management, 23(5), 456‒478. Organisation for Economic Co-operation and Development [OECD]. (2006). Ageing and employment policies: Live longer, work longer. Paris: OECD. Padaki, V. 2007. The human organisation: Challenges in NGOs and development programmes. Development in Practice, 17(1), 65‒77. Pynes, J.E. 2008. Human Resources Management for Public and Nonprofit Organizations: A Strategic Approach. San Francisco, John Wiley & Sons. Razvi, M. and Roth, G. 2010. Non-governmental organizations and the socio-economic development of low-income women in India. Human Resource Development International, 13(1), 65‒81. Ridder, H.-G., Baluch, A.M. and Piening, E.P. 2012. The whole is more than the sum of its parts? How HRM is configured in nonprofit organizations and why it matters. Human Resource Management Review, 22(1), 1‒14. Roberts, S.M., Jones, J.P., and Fröhling, O. 2005. NGOs and the globalization of managerialism: A research framework. World Development, 33(11), 1845‒1864. Rodwell, J.J. and Teo, S.T. 2004. Strategic HRM in for-profit and non-profit organizations in a knowledge-intensive industry: The same issues predict performance for both types of organization. Public Management Review, 6(3), 311‒331. Rusaw, A.C. and Rusaw, M.F. 2008. The role of HRD in integrated crisis management: A public sector approach. Advances in Developing Human Resources, 10(3), 380‒396. Russ-Eft, D. and Hatcher, T. 2003. The issue of international values and beliefs: The debate for a global HRD code of ethics. Advances in Developing Human Resources, 5(3), 296‒307. Schraeder, M., Tears, R.S. and Jordan, M.H. 2005. Organizational culture in public sector organizations: Promoting change through training and leading by example. Leadership & Organization Development Journal, 26(6), 492‒502. Short, D.C. and Callahan, J.L. 2005. ‘Would I work for a global corporation?’ and other ethical questions for HRD. Human Resource Development International, 8(1), 121‒125. Stirling, C., Kilpatrick, S. and Orpin, P. 2011. A psychological contract perspective to the link between non-profit organizations’ management practices and volunteer sustainability. Human Resource Development International, 14(3), 321‒336. Tomlinson, F. and Schwabenland, C. 2010. Reconciling competing discourses of diversity? The UK non-profit sector between social justice and the business case. Organization, 17(1), 101–121. Treiber, J., Kipke, R., Satterlund, T. and Cassady, D. 2013. The role of training in the evaluation of public programs. International Journal of Training and Development, 17(1), 54‒60. von Eckardstein, D. and Brandl, J. 2004. Human resource management in nonprofit organizations. In A. Zimmer and E. Priller (eds) Future of Civil Society: Making Central European Nonprofit-Organizations Work. Wiesbaden: VS Verlag für Sozialwissenschaften, pp. 297‒314. Wang, G.G. and Swanson, R.A., 2008. The idea of national HRD: An analysis based on economics and theory development methodology.  Human Resource Development Review, 7(1), 79‒106. Weisinger, J.Y., Borges-Méndez, R. and Milofsky, C. 2016. Diversity in the nonprofit and voluntary sector. Nonprofit and Voluntary Sector Quarterly, 45(1), 3S‒27S. Zidan, S. 2001. The role of HRD in economic development. Human Resource Development Quarterly, 12(4), 437‒443.

GARAVAN 9781781954171 PRINT.indd 75

22/09/2017 16:31

4. IHRD in small firms and internationalising SMEs Ciara T. Nolan

INTRODUCTION Research endeavours in international HRD (IHRD) have rarely extended to the realm of small and medium-sized enterprises (SMEs) (Nolan and Garavan, 2016). The strategic significance of SMEs and the critical role they play as engines of growth and innovation is borne out by global statistics. In the European Union, SMEs account for more than 99 per cent of all enterprises, employ almost 90 million people and generate 58 per cent of value added (European Commission, 2015). SMEs also constitute the backbone of the Asia-Pacific region, accounting for over 97 per cent of all enterprises, employ more than half of the workforce across Asia-Pacific Economic Cooperation (APEC) economies and contribute up to 50 per cent of GDP (APEC, 2016). In addition, data from the United States paints a similar picture with small firms constituting approximately 99.7 per cent of US employer firms and employing 48.5 per cent of the private sector workforce (SBA, 2014). Internationalisation has been defined in many ways, however, it is often conceptualised as firm-level economic behaviour that crosses national borders (Olejnik and Swoboda, 2012). Recent work in SMEs has also focused on internationalisation as a growth strategy undertaken to improve organisational performance (Hilmersson, 2013; Khavul, PérezNordtvedt and Wood, 2010). It has been argued that the ability to internationalise has become a competitive necessity for SMEs (Couerderoy et al., 2010) and many small firms are becoming increasingly international (Andersson and Florén, 2011). Notably, the reduction or elimination of trade barriers, combined with technological advances in telecommunications, transportation and information technology, have reduced small firms’ transaction costs of delivering goods and services to international customers (Hessels and Terjesen, 2010). Indeed, it has been argued that in a globalising economy, SMEs may face greater risks for failing to internationalise (Hilmersson, 2013). There is also growing recognition of the importance of internationalising entrepreneurial SMEs as important drivers of cross-border trade and foreign direct investment (FDI) in the world economy (Ghauri and Kirpalani, 2015). Yet, in spite of 76

GARAVAN 9781781954171 PRINT.indd 76

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­77 their growing importance as players in an international market, the role of SMEs is not actively discussed within the international management literature (Cerrato, Crosato and Depperu, 2016; Dowling, Festing and Engle, 2013). The most commonly used definition within the OECD area is that of the European Commission (2003). Three categories of firms are identified, including micro firms (less than 10 employees), small firms (10‒49 employees) and medium-sized enterprises (50‒249 employees). Annual turnover and/or balance sheet totals and firm autonomy (non-subsidiary and independent) are also invoked for eligibility. The United States Small Business Administration (SBA, 2012) broadly classifies a small business as an independent firm with fewer than 500 employees. The SBA also recognises the sector-specific nature of size and outlines a range of size standards for different industries. This approach is also adopted within the APEC region, which includes Australia, China, Japan, Malaysia, Peru and Singapore. Widespread variation in terms of numbers employed and turnover thresholds is also evident (APEC, 2011). Regardless of the precise definition applied, the numerical and economic significance of SMEs cannot be overstated. In the aftermath of the global financial and economic crisis, the ability of SMEs to survive and grow arguably holds the key to economic recovery in the coming years. The aim of this chapter is to reflect on the status of IHRD in SMEs. It is argued that SMEs constitute a critical place that can enhance our understanding and vision of IHRD. Nonetheless, it is paradoxical that the importance ascribed to SMEs lies in stark contrast to their lack of prominence on the IHRD research agenda. The current emphasis on arriving at a global HRD construct (Garavan and Carbery, 2012) is in serious doubt without due consideration being afforded to the SME context. As noted by Thassanabanjong, Miller and Marchant (2009, pp. 687‒688), research on HRD “simply sees SMEs as part of a global system of MNC production. This perspective neglects the vital role of SMEs in the economy in their own right”. The chapter begins by examining definitions of SMEs and the concept of ‘smallness’. The chapter then draws on international evidence to examine the key characteristics of SMEs and the nature and form of HRD in this context. Particular attention is devoted to exploring the barriers and enablers to IHRD in SMEs. With this understanding, the chapter moves to question perennial negative stereotypes surrounding SME IHRD. A number of key conceptual and theoretical deficiencies in the extant literature are identified. An argument for more careful theorising of IHRD in the SME context is proposed in order to avoid conceptual myopia, address current deficiencies and capture the multifaceted and complex nature of IHRD in SMEs. The remainder of the chapter suggests

GARAVAN 9781781954171 PRINT.indd 77

22/09/2017 16:31

78  Handbook of international human resource development promising directions for future research and identifies key implications for IHRD practice.

IHRD IN SMEs: KEY FEATURES, BARRIERS AND ENABLERS HRD is regarded as critically important in the volatile global environment of modern business (Dowling, Festing and Engle, 2013). However, much of extant international literature describes HRD in SMEs as unsophisticated (Sadler-Smith, Down and Field, 1999), insufficient (Kitching, 2007) and deficient (Hill, 2004). Studies from around the globe suggests that a formal HRD infrastructure characterised by a strategic, systematic approach to analysis of training needs, the development of plans and rigorous evaluation of activity is frequently lacking or poorly implemented (Keogh, Mulvie and Cooper, 2005; MacMahon and Murphy, 1999; Sabella and Analoui, 2015). Evidence also indicates a prevalence of and preference for informal and idiosyncratic HRD approaches in SMEs (Bishop, 2015; Coetzer, Redmond and Sharafizad, 2012). In the main, discussion within the international literature adopts a deficit perspective, centering on the barriers preventing SMEs from engaging in formal HRD. Evidence from the UK (Forth, Bewley and Bryson, 2006), Ireland (Birdthistle and Fleming, 2007), the Netherlands (de Kok, 2002), Sweden (Kock and Ellström, 2011), Poland (Marzec et al., 2009), and Finland (Saru, 2007) indicates that SMEs are less likely to undertake formal training and development than larger organisations. Similarly, research from Asia-Pacific countries reports an inverse relationship between firm size and formal HRD provision (Nguyen and Bryant, 2004; Padachi and Bhiwajee, 2016; Waddoups, 2011), coupled with a lack of willingness to invest time and money in formal interventions (Susomrith and Coetzer, 2015; Thassanabanjong, Miller and Marchant, 2009). Technologicallyfacilitated approaches to training delivery such as e-learning are also not prevalent in EU SMEs (Admiraal and Lockhorst, 2009; Mellett and O’Brien, 2014). Financial barriers to HRD figure prominently in the international literature. The high opportunity cost of utilising formal methods is highlighted in Castany’s (2010) research on Spanish industrial firms and in Greenidge et al.’s (2012) analysis of training methods in retail, manufacturing and tourism-oriented firms in Barbados. Studies from North America also echo such findings (Hite and McDonald, 2006; Lorenzet, Cook and Ozeki, 2006). Without doubt, the unique features of SMEs exert an important influence on their internationalisation behaviour, including their approach to

GARAVAN 9781781954171 PRINT.indd 78

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­79 HRD (Raymond and St-Pierre, 2011). These unique features mean that SMEs experience different operational and HR challenges to larger organisations when internationalising their operations (Dowling, Festing and Engle, 2013). They are generally regarded as having significant resource constraints, limited international experience and managerial competencies compared to large multinational organisations, which act as critical barriers to internationalisation (Andersson and Florén, 2011; Coviello and McAuley, 1999; Giovannetti, Ricchiuti and Velucchi, 2011; Hilmersson, 2013; Manolova et al., 2002). Financial resource limitations are cited as notably influential, as is an inadequate quantity of and/or untrained senior and operational personnel for internationalisation (OECD, 2009). Thus, many of the key obstacles facing SMEs that wish to internationalise are HRD-related. However, studies have also identified HRD as a key enabler of successful internationalisation in SMES. In their study of EU SMES, Gray and Mabey (2005) report that SMEs adopting more formal HRD practices achieve higher levels of growth. Moreover, in their analysis of the relationship between SMEs, FDI, FDI-training programmes and organ­ isational performance in Taiwanese firms, Chi, Wu and Lin (2008) highlight the importance of a formal, systematic approach to training needs analysis, design and implementation to the success of the internationalisation process. However, Hassid and Fafaliou (2006) report a strong preference for developing internationalisation-related competences through practical, results-oriented, on-the-job training interventions among SMEs in the Netherlands, Austria, Greece, Spain, Italy, Ireland and the UK. They also highlight a reluctance to participate in formal, external support programmes due to their high cost and perceived incompatibility with the needs of the firm. Matlay and Fletcher (2000) also identify obstacles in matching the specific needs of SMEs to become more globalised with the existing supply of relevant training in the market. Gold and Thorpe (2008) therefore suggest that the specific characteristics of SMEs can actually feed the absence of a formal HRD culture. Close proximity to external environmental forces creates vulnerability and uncertainty due to limited market power and influence (Westhead and Storey, 1996). Such vulnerability is undoubtedly more pronounced in an increasingly global marketplace. SMEs often respond by adopting a short-term approach to operations, favouring projects offering a quick return on investment (Storey and Greene, 2010). This leads to an IHRD agenda driven by operational and pragmatic concerns, whereby decisions and interventions reflect business needs and priorities (Barrett, 2015). Consequently, HRD tends to be predominantly reactive in nature, with the focus on managing skills shortages, addressing performance deficits, creating workforce mobility and flexibility (Kotey and Folker, 2007;

GARAVAN 9781781954171 PRINT.indd 79

22/09/2017 16:31

80  Handbook of international human resource development Morgan, Raidén and Naylor, 2008). Developmental activities tend to be embedded within the context of daily operations and routines and produce immediate, visible gains (Hill and Stewart, 2000). Love and Roper (2015) observe that while there is considerable evidence for the direct contribution of HR skills to success of internationalisation strategies in MNEs, the literature on SMEs is relatively limited. Nevertheless, it has been widely observed that SMEs face critical challenges in attracting, training and retaining talented employees (Kitching, 2015; Rutherford, Buller and McMullen, 2003; Williamson, 2000). Studies reveal that SMEs often lack the necessary professional expertise to accurately diagnose training needs (Klaas et al., 2005). They are also less likely to have internal HR systems (such as training policies, plans and budgets) to monitor the provision and outcomes of activity (Bishop, 2015; Curado and Teixeira, 2014; Hoque and Bacon, 2006). This leads Hornsby and Kuratko (2003) to assert that managerial incompetence in handling HRM issues such as training is a major source of firm failure, while Kotey and Sheridan (2004) suggest that the effective implementation of more sophisticated HR structures and procedures, which are necessary to support growth and internationalisation, is what distinguishes successful from unsuccessful SMEs. Key Actors in the HRD System: Owner-managers and Employees The pervasive role of the owner-manager is perhaps the most critical factor influencing IHRD in SMEs and has been the subject of much research attention (Kerr and McDougall, 1999; Storey, 2011). The internationalisation process often centres around one individual and their knowledge, education, experience, skills and network of relationships (Ruzzier et al., 2007), and thus the key features of the SME ownermanager or entrepreneur can exert a particularly significant impact (Festing, 2007). Specifically, the human capital and learning orientation of the owner-manager have been found to exert a positive and substantial influence on the decision to internationalise and its subsequent success (Harrison and Leitch, 2005; Javalgi and Todd, 2011; Van der Sluis, van Praag and Vijverberg, 2005). For example, Tocher and Rutherford (2009) suggest that increased levels of managerial expertise provides firms with the skills to analyse and resolve human resource issues which are central to the growth process. Moreover, Manolova et al. (2002) maintain that such human capital may help internationalised SMEs to overcome inadequacies in other resource stocks, thereby providing them with a significant source of differential advantage. In terms of HRD, not only does the attitude, values and motivation

GARAVAN 9781781954171 PRINT.indd 80

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­81 of the owner-manager strongly influence the priority afforded to IHRD and the initial decision to train, it also affects the type of interventions, formal and/or informal, that take place (Patton and Marlow, 2002). International evidence suggests that HRD for those employed in an SME usually follows the same pattern as that experienced by its ownermanagers (Deakins et al., 2012). Experiential learning from engagement in international relationships and transactions represents a critical form of competence development for many owner-managers and the learning process is often chaotic, opportunistic and incremental (Fletcher, 2004). The focus lies on the acquisition of contextual tacit knowledge through informal means rather than on gaining explicit knowledge via formal training programmes (Dowling, Festing and Engle, 2013). However, Rigg and Trehan (2002) also highlight the important role played by managerial engagement in formal HRD as a catalyst for other forms of internal HRD within SMEs. Employees are important actors in an HRD system, however, the IHRD literature is characterised by an overreliance on managerial respondents, whereby the recipients of HRD are often overlooked (Panagiotakopoulos, 2015). In their study of the internationalisation strategies of Belgian SMEs, Onkelinx, Manolova and Edelman (2015) highlight the importance of co-alignment and tailoring between a firm’s employee human capital resources and the chosen internationalisation strategy. The importance of the relationship between employee human capital and SME internationalisation is borne out by the critical and direct role played by employees in terms of strategy implementation and decision-making around daily operations. On the whole, however, there is mixed evidence regarding employee experiences and perceptions of IHRD in SMEs. Coetzer, Redmond and Sharafizad (2012) highlight examples of employees proactively seeking access to training and learning opportunities. However, some evidence suggests that SMEs’ employees may have fewer opportunities to contribute their suggestions for development (Hoque and Bacon, 2006; Wang et al., 2010). Pajo, Coetzer and Guenole (2010) note that the frequency of employee participation in HRD is associated with higher levels of job satisfaction, motivation, lower levels of turnover intentions and neglectful behaviour. Investment in HRD practices, both formal and informal, has also been found to have a positive impact on organisational commitment, quality of working life and employee self-confidence (Roffe, 2007; Rowden, 1995; 2002). Significantly, the informal, experiential nature of HRD in SMEs is cited by employees as particularly critical in enabling them to develop job competence and acquire valuable experience as they interact with colleagues and managers (Coetzer, 2006; Seymour and

GARAVAN 9781781954171 PRINT.indd 81

22/09/2017 16:31

82  Handbook of international human resource development Sandiford, 2005). Conversely, negative perceptions and experiences of training amongst employees are also evident. A lack of access to workplace HRD can have a negative impact on sustainable working amongst older employees (Zientara, 2009). Coetzer (2007) observes significant employee dissatisfaction with managerial support for and facilitation of learning at work, coupled with unfavourable attitudes regarding the provision of workplace learning opportunities and experiences. Kitching (2007) also highlights the lack of motivation and inclination for learning and development amongst those working in SMEs. A further pertinent point is raised by Lange, Ottens and Taylor (2000); rather than being regarded as ‘carrot’, training may be viewed by employees as a punishment for under-performance (a stick). These findings highlight a political dimension to HRD in SMEs, whereby the subjective orientations of employees are significant in shaping a firm’s approach to activity (Bishop, 2008; Coetzer, Redmond and Sharafizad, 2012). HRD in SMEs may therefore be mediated by a range of different interests and expectations amongst two key stakeholder groups in particular; ownermanagers undoubtedly exert considerable power, however, their influence will be tempered by employee attitudes, motivation, behaviours and orientations, both positive and negative. Importantly, owner-manager power is not absolute and employee input will colour how HRD is deployed and shape its operation. The nature and form of IHRD in SMEs is therefore the outcome of ongoing, dynamic and complex interactions within the idio­syncratic SME context (cf. Ram and Edwards, 2003). It is widely argued that IHRD will vary according to the cultural and institutional environment in which it is conducted (Kyriakidou et al., 2013). National differences are regarded as particularly critical and can lead to strongly contrasting ideas about what constitutes effective management practice (Brewster et al., 2011). In the context of IHRD, the influence of national culture at organisational level will be manifest in attitudes to training and specific practices utilised in the workplace. Collectivist cultures, such as those found in Asian countries, emphasise close personal ties and group cohesion and thus may resist the formalisation of HRD, with employees and owner-managers opting for more informal approaches that maintain social relationships (Marquadt, Berger and Loan, 2004). In contrast, individualist cultures such as the US reinforce individual achievement (Ardichvili and Kuchinke, 2002) and thus self-directed/initiated learning approaches may be more preferential. In addition, organisations in countries with high power distance (Hofstede, 1980), as found in many Asian and Latin countries, may pursue more autocratic leadership styles, which limit employee input. Employees may expect more formalised training styles and resist approaches that incorporate the provision of feedback

GARAVAN 9781781954171 PRINT.indd 82

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­83 to improve performance (Kyriakidou et al., 2013; Marquadt, Berger and Loan, 2004). Conversely, societies with low power distance, such as the US, UK and Scandinavian countries, tend to favour a more democratic and participative management style (Hofstede, 2001). In such cultures, training needs are frequently identified through performance appraisal systems and employees may feel more comfortable discussing issues in a more informal manner. In spite of the above discussion, the evidence suggests that the differences in HRD approaches between nations may not be as pronounced with respect to SMEs. By way of illustration, Nguyen and Bryant’s (2004) study of Vietnamese SMEs recognises that although HRD is influenced by a range of cultural, economic and institutional factors, significant consistency with findings from studies undertaken in developed contexts is evident. Similar results have been reported in relation to other Asian countries. In their study of Taiwan SMEs, Wang et al. (2010) found informal and incidental means of training and learning to be the most important form of HRD. Correspondingly, Teck-Hong and Yong-Kean’s (2012) study of Malaysian service firms confirmed the importance of informal training to the successful performance of SMEs. Research in Scandinavian countries does support the broader IHRD literature and highlights the importance of proactive employee participation in the HRD process, collaboration with colleagues and the receipt of direct feedback as vital to learning and competence development (Kock and Ellström, 2011; Saru, 2007). Similar accounts are also found with respect to the US, UK and Irish contexts (Birdthistle, 2008 Kerr and McDougall, 1999; Lorenzet, Cook and Ozeki, 2006), as well as in Australia and New Zealand (Coetzer, 2006; Walker and Webster, 2006). It may be the case that global market forces cause firms to operate in similar ways if they are remain competitive. Nevertheless, caution must be exercised with respect to such findings and sensitivity to differences within and between regions must be incorporated into research designs.

MOVING BEYOND THE IHRD DEFICIENCY MODEL Recent work has suggested that SMEs make ‘informed’ rather than ‘ignorant’ decisions regarding HRD (Gray 2004; Pajo, Coetzer and Guenole, 2010; Storey, 2004). Despite several decades of research around the globe, empirical associations between provision of formal IHRD and improved business performance remain weak (Storey and Greene, 2010). Thus, rather than representing a display of ignorance, an unwillingness to invest in formal IHRD may be derived from sound reasoning (Kotey and

GARAVAN 9781781954171 PRINT.indd 83

22/09/2017 16:31

84  Handbook of international human resource development Folker, 2007; Patton, 2005). Studies have found that SMEs may not have a perceived need/motivation to train because of current skill requirements or recruitment policies (Keogh, Mulvie and Cooper, 2005; Kitching and Blackburn, 2002). Furthermore, Boxall and Purcell (2011) maintain that pragmatic and informal approaches to address performance deficits or counteract the fear of poaching in SMEs are economically rational and should therefore not be criticised. Hence, avoiding investment may be justified and the motivation to engage in IHRD is likely to be unique to each firm (Kerr and McDougall, 1999). Empirical work has shown that informality fits well with the constraints under which SMEs operate in a global market, and may in fact be more appropriate and effective in enhancing business performance in this particular context (Coetzer, 2006). The conditions under which many SMEs operate suggest that a highly structured, standardised and bureaucratic IHRD architecture may be ill-suited to the “dynamic, informal conditions that prevail” (Chadwick et al., 2013, p. 312). By way of illustration, Ram (2000) found efforts to implement structured HRD processes in the dynamic and sometimes frenzied setting of the SME can interfere with the ability to respond to day-to-day issues that are more urgent. Informality therefore lends itself to the operational flexibility needed to effectively respond to external pressures. As a result, assumptions about the inferiority and absence of IHRD in SMEs have recently been called into question (Kitching, 2008) on the basis that the absence of a formal training culture does not correspond to a failure to train and learn in SMEs (Gold and Thorpe, 2008). While informality may be frowned upon in terms of IHRD practices, there is also evidence that employees consider it in a positive way as discussed earlier. Research in the IHRM field has reported that employees in SMEs are ‘happier’ (as evident in higher levels of job satisfaction, lower turnover, and absenteeism), and attribute this happiness to the informal manner in which these firms operate (Storey et al., 2010). Such findings may serve as a more convincing explanation for the relative lack of IHRD formality in the SME context. An HRD architecture that has simplicity and seamlessness via its informality does not equate to absence, inadequacy or inferiority (Hill, 2002). A more organic IHRD architecture may therefore represent a more effective ‘contextual fit’ (Dalley and Hamilton, 2000) for the SME. More in-depth analyses of empirical reality are undoubtedly needed to explore and explain the reasons particular practices appear rational and coherent courses of action for SMEs (Bacon, 1999; Fletcher, 2004). There is a growing movement in the IHRM and SME literatures of the need to study SME practice on its own terms, rather than in comparison to normative prescriptions (for example, Gilman and Edwards, 2008) and

GARAVAN 9781781954171 PRINT.indd 84

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­85 more nuanced and context-sensitive accounts of labour management in the SME setting are emerging (Atkinson, Mallett and Wapshott, 2016; Wu, Bacon and Hoque, 2014). As Marlow (2006, p. 474) has argued with respect to HRM, “what diverges from normative applications should not automatically be considered subversive” without due consideration to the circumstances of the SME. Such developments stem directly from the recognition that the differences between large and small firms are more than that of scale and that resultant theorising must be built on actual SME experience (Westhead and Storey, 1996; Taylor, 2006). Whilst size does matter and cannot be overlooked (Kitching, 1997), it is not a sufficient explanatory variable for organisational behaviour (Behrends, 2007). Ultimately, a multitude of internal and external contextual dynamics combines to shape and explain the behavioural characteristics of SMEs and their handling of the employment relationship in an international context (Ram and Edwards, 2003; Ram et al., 2001). Whilst not dismissing the value of formal approaches to IHRD, the evidence presented highlights the need to recognise that SMEs often obtain better outcomes from informal training. The key findings from a recent OECD (2010) study across six countries (Belgium, Canada, New Zealand, Poland and the United Kingdom) are testament to this. Consequently, the OECD maintains that national qualifications systems need to find a way to recognise and encourage informal skills development. It is suggested that industry associations and SMEs themselves need to play a greater role in creating user-friendly qualifications and that formal training organisations need to be incentivised to provide more demand-driven interventions. Importantly, it is argued that: Further resources need to be invested in researching and understanding the dynamics of informal skills development. Informal skills development should be a theme for the follow-up studies of the OECD Skills Strategy, in order to provide further evidence and exploration of sectoral and national variations. (OECD, 2010, p. 7)

In this regard, national HRD policy and systems clearly have an important role to play. In recent times, governments around the globe have placed the enhancement of the growth capability of SMEs at the heart of public policy in order to foster national competitiveness and productivity (Georgiadis and Pitelis, 2014). A central focus of the policy agenda has been the introduction and promotion of training supports and initiatives (including investments in higher education and subsidised accredited company training) that will stimulate higher level skills development and formal training in SMEs (Bishop, 2015). Yet, as observed by Panagiotakopoulos (2015), such

GARAVAN 9781781954171 PRINT.indd 85

22/09/2017 16:31

86  Handbook of international human resource development national initiatives have not adequately stimulated SME demand for training and development. This may be partly explained by the overly supply­driven nature of such initiatives, whereby providers lack understanding of and responsiveness to the specific needs of SMEs (OECD, 2013). Storey and Westhead’s (1997) analysis of why formal training provision is lower in small than in large firms may shed further light on this issue. They offer two explanations: the ignorance argument and market failure. The former refers to ignorance amongst SMEs regarding the benefits of training, while the latter refers to the lack of incentives among SMEs to avail of training opportunities in the marketplace. Marlow (1998) and Klaas et al. (2005) suggest that SMEs may lack awareness of the pay-back of training, including the ability to identify and nurture the needs of employees. However, as Bishop (2008) observes, this lack of awareness also extends to a lack of suitable information about the availability of training initiatives and a lower financial incentive on the part of training providers to contact SMEs (Storey and Westhead, 1997). It must be argued, however, that supply-driven provision acts as a more prominent barrier to SME participation in formal IHRD. Research in Australia (Walker et al., 2007), New Zealand (Deakins et al. 2012), Ireland (Birdthistle and Fleming, 2007) and the UK (Matlay, 2004) suggests that providers often neglect SME needs. Consequently, there are widespread perceptions that external training is irrelevant to the specific requirements of SMEs or is inconvenient and disruptive to business operations. Ownermanagers tend to view external providers with scepticism and question their credibility and relevance (Bishop, 2011). Storey’s (2004) analysis of research findings across the US, Canada, Japan, Germany and Finland also indicates that evidence increasingly points towards support for the market failure over the ignorance explanation. In his recent analysis of national skills systems, Bishop (2015) criticises the free market approach adopted in the UK and the USA, maintaining that such systems rely too heavily on formal training and qualifications, thereby running counter to the less structured, informal and resource-poor SME context. He suggests that corporatist systems, such as those found in Germany and Finland, may yield greater success due to their receptiveness to integrating informal learning into workplace practices and national qualification frameworks that focus on flexible, modularised training that allows SMEs to access tailored provision that meets their own specific needs. Bartlett et al.’s (2002) study of IHRD in East and South East Asian countries confirms the importance of national economic policies that can help to raise organisational commitment to HRD activities. However, the study acknowledges the associated challenges given the predominance of SMEs in such countries. The problems inherent within voluntarist

GARAVAN 9781781954171 PRINT.indd 86

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­87 institutional frameworks such as that of Ireland, the UK and Australia, particularly in terms of the lack of willingness amongst employers to engage with training initiatives have been observed (Rainbird, 1994). Hoque and Bacon (2008) concluded that the comparatively limited uptake of Investors in People (IiP)1 amongst UK SMEs is symptomatic of such problems. SMEs are widely found to resist external advice (Anderson and Boocock, 2002) and thus their engagement with voluntary State HRD initiatives has often been found wanting. In other countries such as Malaysia (Rowden and Ahmad, 2000), France (Gilman and Raby, 2013) and South Africa (Hirschsohn, 2008), skills development legislation is used to enforce national policy. In such contexts, the government plays a central role in ensuring that employers uphold their statutory duty to allocate a proportion of their labour costs towards HRD activities. However, in the main, evidence suggests that SMEs are often ignorant towards employment legislation, regarding it as a burden (Marlow, 2002). This can result in noncompliance or resistance whereby employees can risk losing out on their statutory entitlements (Atkinson and Curtis, 2004). Much of this evidence stems from the UK and thus it is unclear as to whether such findings will translate to other national contexts.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE A systematic review of the IHRD in SMEs literature (Nolan and Garavan, 2016) indicates that only a fraction of research involves a global team of researchers and the vast majority of output stems from two regions, namely the UK/Ireland and Australia/New Zealand. While this is surprising in light of the pervasiveness of SMEs in the global economy, it also presents opportunities for global research collaboration. Comparative studies are required to generate understanding about the characteristics of SME HRD in a range of international contexts, with a particular need to focus on developing countries from Asia and Africa. In addition, Wang et al. (2010) emphasise the importance of developing indigenous instruments that reflect culturally oriented factors. Research designs also need to be sensitive to within region variation as well as to variation between regions (Lawler, Walumbwa and Bai 2008). While the theoretical and empirical critiques of IHRD outlined earlier are useful, even more important is providing a range of improved alternatives (Kaufman, 2010) that may serve to better capture the complexity of IHRD arrangements within the SME domain. The credibility of the field would undoubtedly be strengthened by extending theories currently used

GARAVAN 9781781954171 PRINT.indd 87

22/09/2017 16:31

88  Handbook of international human resource development and employing a more diverse range of theoretical lenses and methodological approaches to enhance the research base. Of particular importance are perspectives that give significance affordance to capturing the complexity of both informality and context. One such perspective is that of social constructionism (Berger and Luckmann, 1966) in which the focus lies on understanding how people make sense of the social world in their everyday lives (Turnbull, 2002). Social constructionist theorists seek to explain how social experience is created and given meaning, thereby recognising the centrality of context (Schwandt, 2000). The focus moves to the specific, the particular and to situational understandings and discourses of HRD, whereby existing theoretical frameworks are redefined (Torraco, 2004). Key aims are to understand the phenomenon of IHRD through lived experiences of those who live it, to represent the actor’s construction of their HRD experiences and to give them voice in the research process, while maintaining sensitivity to context (Thomas and Linstead, 2002). Such an approach seems appropriate in light of earlier discussions that have challenged the objective basis of conventional knowledge about IHRD in SMEs and opens up possibilities for alternative means of understanding (Gergen, 1985). However, research has emphasised the importance of adopting a broader perspective that also incorporates country-specific contextual factors in the study of patterns of people management and development in particular (Gooderham, Nordhaug and Ringdal, 1999). This is because managers construct meaning from their respective global and national business contexts, as well as from local institutional processes (Geppert, Williams and Matten, 2003). It is increasingly acknowledged that SMEs are deeply embedded in a web of institutional, cultural, economic, political and social factors that impact upon their adoption and application of IHRM and IHRD practice (Edwards et al., 2006). A social constructionist approach therefore recognises the social embeddedness of individual actors and the extent to which the emerging meanings and interpretations of IHRD are connected to their respective social context (Gephart Jr. and Richardson, 2008). Hence, cross-cultural and international analyses should seek to uncover multiple and divergent meanings of IHRD. Indeed, as argued by Sackmann and Phillips (2004), a multiple perspective deliberately includes conflicting and contradictory findings as key dimensions of the research process. The primary aim is to understand and embrace diversity rather than to silence it and to surface differences across a range of idiosyncratic contexts (Gephart Jr. and Richardson, 2008). In-depth case study designs and ethnographic endeavours may therefore be particularly valuable in uncovering ‘how HRD works’ across diverse international contexts (Watson, 2011) through accessing ‘insider

GARAVAN 9781781954171 PRINT.indd 88

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­89 stories’ (Bacon, 1999). Investigations of the discursive resources employed (Sambrook, 2007) within SMEs may enhance our understanding of how diverse agents think and speak of IHRD. It may be particularly informative to explore whether employees as recipients of IHRD make use of communal or counter discourses to those of managers when talking about or doing HRD. A context-sensitive approach which focuses on practice in situ also serves to respect and accommodate informality and may lead to an improved understanding of how and why it works in SMEs (Nolan and Garavan, 2016). A further potentially useful theoretical perspective is the complex resource-based view of the firm (Colbert, 2007). This perspective extends the RBV by applying the lens of complexity and highlights the importance of viewing organisations as “complex adaptive systems that learn and create new responses to their contextual environment” (Colbert, 2007, p. 112). Thus, because informal practices can enable flexibility and responsiveness to the unpredictable and emergent demands of the internal and external international environment of the SME (Colbert, 2007), they can afford competitive advantage (Verreynne, Parker and Wilson, 2013), and may represent a valuable synchronous resource (Colbert, 2007). In this way, informality is not merely an evitable characteristic of SME IHRD (Ram et al., 2001); a conscious choice is made to pursue informality because it serves to strengthen competitive position (Marlow, Taylor and Thompson, 2010). This perspective also recognises that the manner in which key elements of the social system interact will shape the nature and form of IHRD in SMEs, and affords prominence to the intentions, choices and actions of people as they respond to contextual influences. The agency of internal stakeholders and their subjective orientations is significant in shaping approaches to IHRD in SMEs (Bishop, 2008). This suggests a more prominent role for strategic choice theory (Child, 1997). The heterogeneity of IHRD across SMEs may be explained by the idiosyncratic choices made by managers and employees in the SME context. As noted, the behaviour of social actors may stem from a combination of local, national and global contextual influences. Research in MNCs has highlighted the particularly influential role of national culture in determining managerial behaviour. Geppert, Williams and Matten (2003) found that national work patterns and norms were more deeply entrenched rather than giving way to global patterns. Further comparative research is undoubtedly needed to determine whether similar findings could be identified in SMEs, particularly in terms of uncovering what practices are deemed to be most effective and appropriate in a given cultural context (cf. Brewster et al., 2011). Another useful extension of the RBV is dynamic capabilities theory (Helfat et al., 2007). The dynamic capabilities

GARAVAN 9781781954171 PRINT.indd 89

22/09/2017 16:31

90  Handbook of international human resource development ­ erspective focuses attention on a firm’s ability to renew its resources to p cope with changes in the external environment. It has value in studying how IHRD achieves fit over time to address changes in the external environment. Sheehan (2014) advocates the potential of case study research as a means of mapping the role of internal and external contingencies in SMEs and their evolution over time. This may enable us to respond to Goergen et al.’s (2012) call for more nuanced and flexible conceptualisations of IHRD to capture the reality of practice in comparative studies. In terms of practice, enhancing the skills base within SMEs is paramount, however, the manner in which this is achieved needs to be carefully considered. The evidence presented suggests that policy interventions need to change and develop to overcome the scepticism of their credibility and relevance amongst many SMEs. Trust and confidence can be developed through greater recognition of the situational realities facing SMEs and the provision of guidance that addresses their individual priorities and aspirations is critical. Research by the OECD (2010) highlights the importance of the involvement of the social partners and the development of supply-driven interventions. However, Rigby questions the ability of existing comparative research to assess the effectiveness and transferability of particular tripartite models adequately, particularly when separated from their cultural context. What is clear is that initiatives need to exhibit greater contextual fit by provider greater support for ‘what works’ in terms of IHRD, while also encouraging SMEs to embrace a more strategic logic (Gold and Thorpe, 2008). Innovative responses to the contexts and issues facing SMEs with respect to IHRD must be pursued. Leveraging local and sector-specific networks may be a valuable means of offering demand-driven interventions that engage SME owner-managers with peers facing similar challenges (Birchall and Giambona, 2007; Harney and Nolan, 2014; McGovern, 2006). There is also the need to appoint personnel (translators) who by speaking the language of the SME, can help them to bridge the gap between external advice and enhancement of internal practice (Nolan and Garavan, 2014). While such initiatives may be readily embraced by SMEs in Western societies, those operating in countries with heavily centralised or transitional national HRD systems (Cho and McLean, 2004) may be more receptive to State appointed personnel with dedicated responsibility for SMEs. Regardless, there is a critical need for IHRD policy interventions to encourage SMEs to ‘get on board’ or risk being left behind.

GARAVAN 9781781954171 PRINT.indd 90

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­91

CONCLUSION This chapter has highlighted both the complexity and importance of exploring IHRD in SMEs, as well as reflecting on the IHRD agenda in the SME context. SMEs are major contributors to global economic growth, playing a vital role in the world economy, however, they are often neglected in IHRD research. As global competition intensifies, IHRD is essential for SMEs to keep pace with larger firms in terms of sustainable competitiveness. Despite some progression, international analyses of HRD in SMEs have not advanced significantly beyond the legacy of the deficiency model to recognise, accommodate and explain actual IHRD arrangements and practice and the way in which the SME context shapes HRD activity. The crucial role played by informality in this setting and its dynamics are not sufficiently recognised nor understood. Greater attention also needs to be paid to the role of employee human capital given the central role they play as participants and implementers in the internationalisation strategy process.

NOTE 1. Investors in People (IiP) is the UK’s national quality standard for people management. Launched in 1991, the standard aims to improve business performance by promoting best practice in managing and developing people. The latest figures indicated that over a third of the UK’s workforce is employed by IiP recognised employers or organisations working towards achieving recognition status. Further information is available from www.investorsinpeople.co.uk.

REFERENCES Admiraal, W. and D. Lockhorst (2009), ‘E-learning in small and medium sized enterprises across Europe: Attitudes towards technology, learning and training’, International Small Business Journal, 27 (6), 743‒767. Anderson, V. and G. Boocock (2002), ‘Small firms and internationalisation: Learning to manage and managing to learn’, Human Resource Management Journal, 12 (3), 5‒24. Andersson, S. and H. Florén (2011), ‘Differences in managerial behaviour between small international and non-international firms’, Journal of International Entrepreneurship, 9 (3), 233‒258. Ardichvili, A. and P. Kuchinke (2002), ‘The concept of culture in international and comparative HRD research: Methodological problems and possible solutions’, Human Resource Development Review, 1 (2), 145‒166. Asia Pacific Economic Cooperation (APEC) (2011), Study on SME Internationalization Best Practices Across Selected APEC Economies, Singapore: Spring Singapore/BDO. Asia Pacific Economic Cooperation (APEC) (2016), Small and Medium Enterprises Working Group, accessed 16 May 2016 at www.apec.org/groups/som-steering-committee-on-eco nomic-and-technical-cooperation/working-groups/small-and-medium-enterprises.aspx.

GARAVAN 9781781954171 PRINT.indd 91

22/09/2017 16:31

92  Handbook of international human resource development Atkinson, C. and S. Curtis (2004), ‘The impact of employment regulation on the employment relationship in SMEs’, Journal of Small Business and Enterprise Development, 11 (4), 486–494. Atkinson, C., O. Mallett and R. Wapshott (2016), ‘“You try to be a fair employer”: Regulation and employment relationships in medium-sized firms’, International Small Business Journal, 34 (1), 16‒33. Bacon, N. (1999), ‘The realities of human resource management’, Human Relations, 52 (9), 1179‒1187. Barrett, R. (2015), ‘Small firm training: Just meeting the day-to-day needs of the business’, Employee Relations, 37 (5), 517‒567. Bartlett K., J.J. Lawler, J. Bae, S. Chen and D. Wan (2002), ‘Differences in international human resource development among indigenous firms and multinational affiliates in East and Southeast Asia’, Human Resource Development Quarterly, 13 (4), 383‒405. Behrends, T. (2007), ‘Recruitment practices in small and medium sized enterprises: An empirical study among knowledge intensive professional service firms’, Management Revue, 18 (1), 55‒74. Berger, P.L. and T. Luckmann (1966), The Social Construction of Reality: A Treatise in the Sociology of Knowledge, Garden City, New York: Anchor Books. Bhattacharya, M., D.H. Doty and T.N. Garavan (2014), ‘The organizational context and performance implications of human capital investment variability’, Human Resource Development Quarterly, 25 (1), 87‒113. Birchall, D. and G. Giambona (2007), ‘SME manager development in virtual learning communities and the role of trust: A conceptual study’, Human Resource Development International, 10 (2), 187–202. Birdthistle, N. and P. Fleming (2007), ‘Under the microscope: A profile of the family business in Ireland. Irish Journal of Management, 28 (2), 135–170. Birdthistle, N. (2008), ‘Family SMEs in Ireland as learning organizations’. The Learning Organization, 15 (5), 421‒436. Bishop, D. (2008), ‘The small enterprise in the training market’, Education + Training, 50 (8), 661–673. Bishop, D. (2011), ‘The importance of being an insider’, Journal of European Industrial Training, 35 (4), 326‒344. Bishop, D. (2015), ‘Small firms and the failure of national skills policies: Adopting an institutional perspective’, International Journal of Training and Development, 19 (1), 69‒80. Boxall, P., and J. Purcell (2011), Strategy and Human Resource Management (3rd edition), London: Palgrave Macmillan. Brewster, C., P. Sparrow, E. Vernon and E. Houldsworth (2011), International Human Resource Management, London: CIPD. Castany, L. (2010), ‘The role of size in firms’ training: Evidence from Spain’, International Journal of Manpower, 31 (5), 563‒584. Cerrato, D., L. Crosato and D. Depperu (2016), ‘Archetypes of SME internationalization: A configurational approach’, International Business Review, 25 (1) Part B, 286‒295. Chadwick, C., S.A. Way, G. Kerr and J.W. Thacker (2013), ‘Boundary conditions of the high-investment human resource systems-small–firm labor productivity relationship’, Personnel Psychology, 66 (2), 311‒343. Chi, N-W., C-Y. Wu and C.Y-Y. Lin (2008), ‘Does training facilitate SME’s performance?’, The International Journal of Human Resource Management, 19 (10), 1962‒1975. Child, J. (1997), ‘Strategic choice in the analysis of action, structure, organizations and environment: Retrospect and prospect’, Organization Studies, 18 (1), 43‒76. Cho, E. and G.N. McLean (2004), ‘What we discovered about NHRD and what it means for HRD’, Advances in Developing Human Resources, 6 (3), 382‒393. Coetzer, A. (2006), ‘Employee learning in New Zealand small manufacturing firms’, Employee Relations, 28 (4), 311‒325. Coetzer, A. (2007), ‘Employee perceptions of their workplaces as learning environments’, Journal of Workplace Learning, 19 (7), 417‒434.

GARAVAN 9781781954171 PRINT.indd 92

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­93 Coetzer, A., J. Redmond and J. Sharafizad (2012), ‘Decision making regarding access to training and development in medium-sized enterprises’, European Journal of Training and Development, 36 (4), 426‒447. Colbert, B.A. (2007), ‘The complex resourced-based view: Implications for theory and practice in strategic human resource management’, in R.S. Schuler and S.E. Jackson (eds), Strategic Human Resource Management (2nd edition), London: Routledge, pp. 98‒123. Couerderoy, R., M. Cowling, G. Licht and G. Murray 2(010), ‘Young firm internationalization and survival: Empirical tests on a panel of “adolescent” new technology-based firms in Germany and the UK’, International Small Business Journal, 30 (5), 472‒492. Coviello, N.E. and A. McAuley (1999), ‘Internationalisation and the smaller firm: A review of contemporary empirical research’, Management International Review, 39 (2), 223–257. Curado, C. and S.M. Teixeira (2014), ‘Training evaluation levels and ROI: The case of a small logistics company’, European Journal of Training and Development, 38 (9), 845‒870. Dalley, J. and B. Hamilton (2000), ‘Knowledge, context and learning in the small business’, International Small Business Journal, 18 (3), 51–57. de Kok, J. (2002), ‘The impact of firm-provided training on production testing for firm-size effects’, International Small Business Journal, 20 (3), 271‒295. Deakins, D., M. Battisti, A. Coetzer and R. Roxas (2012), ‘Predicting management development and learning behaviour in New Zealand SMEs’, International Journal of Entrepreneurship and Innovation, 13 (1), 11‒24. Dowling, P.J., M. Festing and A.D. Engle (2013), International Human Resource Management (6th edition), Hampshire: Cengage Learning. Edwards, P., M. Ram, S. Sengupta and C.J. Tsai (2006), ‘The structuring of working relationships in small firms: Towards a formal model’, Organization, 13 (5), 701‒724. European Commission. (2003), ‘Commission recommendation of 6 May 2003/361/EC concerning the definition of SMEs’, Official Journal of the European Union, 36–41, Luxembourg, Belgium: Office for Official Publications of the European Communities. European Commission (2015), Annual Report on European SMEs: SMEs Start Hiring Again, Luxembourg: European Commission Publications Office. Festing, M. (2007), ‘Globalisation of SMEs and implications for international human resource management research and practice’, International Journal of Globalisation and Small Business, 2 (1), 5–18. Fletcher, D. (2004), ‘International entrepreneurship and the small business’, Entrepreneurship and Regional Development, 16 (4), 289‒305. Forth, J., H. Bewley and A. Bryson (2006), Small and Medium-sized Enterprises: Findings from the 2004 Workplace Employment Survey. London: Department of Trade and Industry. Garavan, T.N. and R. Carbery (2012), ‘Editorial: A review of IHRD: incorporating a global HRD construct’, European Journal of Training and Development, 36 (2/3), 129‒157. Gergen, K.J. (1985), ‘The social constructionist movement in modern psychology’, American Psychologist, 40 (3), 266‒275. Ghauri, P.N. and V.H.M. Kirpalani (2015), ‘Overview’, in P.N. Ghari and V.H.M. Kirpalani (eds), Handbook of Research on International Entrepreneurship Strategy: Improving SME Performance Globally, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing, pp. 3‒22. Gilman, M. and P. Edwards (2008), ‘Testing a framework of the organisation of small firms’, International Small Business Journal, 26 (5), 531‒558. Gilman, M. and S. Raby (2013), ‘National context as a predictor of high-performance work system effectiveness in small-to-medium-sized enterprises (SMEs): A UK–French comparative analysis’, The International Journal of Human Resource Management, 24 (2), 372‒390. Georgiadis, A. and C.N. Pitelis (2014), ‘The impact of employees’ and managers’ training on the performance of small- and medium-sized enterprises: Evidence from a randomised natural experiment in the UK service sector’, British Journal of Industrial Relations, early online publication, doi: 10.1111/bjir.12094.

GARAVAN 9781781954171 PRINT.indd 93

22/09/2017 16:31

94  Handbook of international human resource development Gephart Jr., R.P. and J. Richardson (2008), ‘Qualitative research methodologies and international human resource management’, in M.M. Harris (ed.), Handbook of Research in International Human Resource Management, New York: Lawrence Erlbaum Associates, pp. 29‒52. Geppert, M., K. Williams and D. Matten (2003), ‘The social construction of contextual rationalities in MNCs: An Anglo-German comparison of subsidiary choice’, Journal of Management Studies, 40 (3), 617–641. Giovannetti G., G. Ricchiuti and M. Velucchi (2011), ‘Size, innovation and internationalization: A survival analysis of Italian firms’, Applied Economics, 43 (12), 1511–1520. Goergen, M., C. Brewster, G. Wood and A. Wilkinson (2012), ‘Varieties of capitalism and investments in human capital’, Industrial Relations: A Journal of Economy and Society, 51, 501–527. Gold, J. and R. Thorpe (2008), ‘Training, it’s a load of crap!: The story of the hairdresser and his “Suit”,’ Human Resource Development International, 11 (4), 385‒399. Gooderham, P.N., O. Nordhaug and K. Ringdal (1999), ‘Institutional and rational determinants of organizational practices: Human resource management in European firms’. Administrative Science Quarterly, 44 (3), 507–531. Gray, C. (2004), ‘Management development in European small and medium enterprises’, Advances in Developing Human Resources, 6 (4), 451‒469. Gray, C. and C. Mabey (2005), ‘Management development: Key differences between small  and large businesses in Europe’, International Small Business Journal, 23 (5), 467‒485. Greenidge, D., P. Alleyne, B. Parris and S. Grant (2012), ‘A comparative study of recruitment and training practices between small and large businesses in an emerging market economy: The case of Barbados’, Journal of Small Business and Enterprise Development, 19 (1), 164‒182. Harney, B. and C. Nolan (2014), ‘HRM in small and medium-sized enterprises’, in B. Harney and K. Monks (eds), Strategic HRM: Research and Practice in Ireland, Dublin: Orpen Press, pp. 157‒173. Harrison, R. and C. Leitch (2005), ‘Entrepreneurial learning: Researching the interface between learning and the entrepreneurial context’, Entrepreneurship Theory and Practice, 29 (4), 351–371. Hassid, J. and I. Fafaliou (2006), ‘Internationalisation and human resource development in European small firms: A comparative study’, Production Planning and Control, 17 (3), 247‒256. Helfat, C.E., S. Finkelstein, W. Mitchell, M. Peteraf, H. Gingh, D. Teece and S. Winter (2007), Dynamic Capabilities: Understanding Strategic Change in Organisations, London: Blackwell. Hessels, J. and S. Terjesen (2010), ‘Resource dependency and institutional theory perspectives on direct and indirect export choices’, Small Business Economics, 34 (2), 203‒220. Hill R. (2002), ‘Researching HRD in small organisations’, in J. McGoldrick, J. Stewart and S. Watson (eds), Understanding Human Resource Development: A Resource-Based Approach, London: Routledge, pp. 122‒145. Hill, R. (2004), ‘Why HRD in small organisations may have become a neglected field of study’, in J. Stewart and G. Beaver (eds), HRD in Small Organisations, London: Routledge, pp. 8‒25. Hill, R. and J. Stewart (2000), ‘Human resource development in small organisations’, Journal of European Industrial Training, 24 (2/3/4), 105‒117. Hilmersson, M. (2013), ‘Small and medium-sized enterprise internationalisation strategy and performance in times of market turbulence’, International Small Business Journal, 32 (4), 386‒400. Hirschsohn, P. (2008), ‘Regulating the “animal spirits” of entrepreneurs? Skills development in South African small and medium enterprises’, International Small Business Journal, 26 (2), 181‒206. Hite, L.M. and K.S. McDonald (2006), ‘Diversity training pitfalls and possibilities: An

GARAVAN 9781781954171 PRINT.indd 94

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­95 exploration of small and mid-size US organizations’, Human Resource Development International, 9 (3), 365–377. Hofstede, G. (1980), Culture’s Consequences: International Differences in Work-Related Values, Los Angeles: Sage Publications. Hofstede, G. (2001), Culture’s Consequences: International Differences in Work-Related Values (2nd edition), Los Angeles: Sage Publications. Hoque, K. and N. Bacon (2006), ‘The antecedents of training activity in British small and medium sized enterprises’, Work, Employment and Society, 20 (3), 531‒552. Hoque, K. and N. Bacon (2008), ‘Investors in People and training in the British SME sector’, Human Relations, 61 (4), 451‒482. Hornsby, J. and D.F. Kuratko (2003), ‘Human resource management in US small businesses: A replication and extension’, Journal of Developmental Entrepreneurship, 8 (1), 73‒92. Javalgi, R.G. and P.R. Todd (2011), ‘Entrepreneurial orientation, management commitment, and human capital: The internationalisation of SMEs in India’, Journal of Business Research, 64 (9), 1004‒1010. Kaufman, B.E. (2010), ‘A theory of the firm’s demand for HRM practices’, The International Journal of Human Resource Management, 21 (5), 615‒636. Keogh, W., A. Mulvie and S. Cooper (2005), ‘The identification and application of know­ ledge capital within small firms’, Journal of Small Business and Enterprise Development, 12 (1), 76‒91. Kerr, A. and M. McDougall (1999), ‘The small business of developing people’, International Small Business Journal, 17 (1), 65‒74. Khavul, S., L. Pérez-Nordtvedt and E. Wood (2010), ‘Organizational entrainment and international new ventures from emerging markets’, Journal of Business Venturing, 25 (1), 104‒119. Kitching, J. (1997), Labour Regulation in the Small Service Sector Enterprise, Unpublished doctoral thesis, England: Kingston Business School, Kingston University. Kitching, J. (2007), ‘Regulating employment relations through workplace learning: a study of small employers’, Human Resource Management Journal, 17 (1), 42‒57. Kitching, J. (2008), ‘Rethinking UK small employers’ skills policies and the role of workplace learning’, International Journal of Training and Development, 12 (2), 100‒120. Kitching, J. (2015), ‘Between vulnerable compliance and confident ignorance: Small employers, regulatory discovery practices and external support networks’, International Small Business Journal, early online publication, doi: 10.1177/0266242615569325. Kitching J. and Blackburn R. (2002), The Nature of Training and Motivation to Train in Small Firms: Research Report No. 330, London: Department for Education and Skills. Klaas, B.S., H. Yang, T. Gainey and J.A. Mcclendon (2005), ‘HR in the small business enterprise: Assessing the impact of PEO utilization’, Human Resource Management, 44 (4), 433–448. Kock, H. and P.E. Ellström (2011), ‘Formal and integrated strategies for competence development in SMEs’, Journal of European Industrial Training, 35 (1), 71‒88. Kotey, B. and C. Folker (2007), ‘Employee training in SMEs: Effect of size and firm-type – family and nonfamily’, Journal of Small Business Management, 45 (2), 214‒238. Kotey B. and A. Sheridan (2004), ‘Changing HRM practices with firm growth’, Journal of Small Business and Enterprise Development, 11 (4), 474‒485. Kyriakidou, N., C. Ling-Zhang, P. Iles and N. Mahtab (2013), ‘Cross-cultural HRD’, in J.  Gold, R. Holden, P. Iles, J. Stewart and J. Beardwell (eds), Human Resource Development: Theory and Practice (2nd edition), Basingstoke: Palgrave, pp. 75‒104. Lange, T., M. Ottens and A. Taylor (2000), ‘SMEs and barriers to skills development: A Scottish perspective’, Journal of European Industrial Training, 24 (1), 5‒11. Lawler, J.J., F.O. Walumbwa and B. Bai (2008), ‘National culture and cultural effects’, in M.M. Harris (ed.), Handbook of Research in International Human Resource Management, New York: Lawrence Erlbaum Associates, pp. 5‒28. Lorenzet, S.J., R.G. Cook and C. Ozeki (2006), ‘Improving performance in very small firms through effective assessment and feedback’, Education + Training, 48 (8/9), 568‒583.

GARAVAN 9781781954171 PRINT.indd 95

22/09/2017 16:31

96  Handbook of international human resource development Love, J.H. and S. Roper (2015), ‘SME innovation, exporting and growth: A review of existing evidence’, International Small Business Journal, 33 (1), 28‒48. MacMahon, J. and E. Murphy (1999), ‘Managerial effectiveness in small enterprises: Implications for HRD’, Journal of European Industrial Training, 23 (1), 25‒35. Manolova, T.S., C.G. Brush, L.F. Edelman and P.G. Greene (2002), ‘Internationalisation of small firms: Personal factors revisited’, International Small Business Journal, 20 (1), 9‒31. Marlow, S. (1998), ‘So much opportunity – so little take up: The use of training in smaller firms’, Journal of Small Business and Enterprise Development, 5 (1), 38‒48. Marlow, S. (2002), ‘Regulating labour management in small firms’, Human Resource Management Journal, 12 (3), 25‒43. Marlow, S. (2006), ‘Human resource management in smaller firms: A contradiction in terms?’, Human Resource Management Review, 16 (4), 467‒477. Marlow, S., Taylor, S. and Thompson, A. (2010), ‘Informality and formality in mediumsized companies: Contestation and synchronization’, British Journal of Management, 21 (4), 944‒966. Marquadt, M., N. Berger and P. Loan (2004), HRD in the Age of Globalisation: A Practical Guide to Workplace Learning in the Third Millennium, New York: Basic Books. Marzec, I., B.I.J.M. Van der Heijden, D. Scholarios, E. Van der Schoot, P. Jędrzejowicz, N. Bozionelos, O. Epitropaki, P. Knauth, A. Mikkelsen and C. Van der Heijde (2009), ‘Employability management practices in the Polish ICT sector’, Human Resource Development International, 12 (5), 471‒492. Matlay, H. (2004), ‘Contemporary training initiatives in Britain: A small business perspective’, Journal of Small Business and Enterprise Development, 11 (4), 504‒513. Matlay, H and D. Fletcher (2000), ‘Globalisation and strategic change: Some lessons from the UK small business sector’, Strategic Change, 9 (7), 437‒449. McGovern, P. (2006), ‘Learning networks as an aid to developing strategic capability among small and medium-sized enterprises: A case study from the Irish polymer industry’, Journal of Small Business Management, 44 (2), 302–305. Mellett, S. and E. O’Brien (2014), ‘Irish SMEs and e-learning implementation: The strategic innovative approach’, British Journal of Education Technology, 45 (6), 1001‒1013. Morgan, A., A. Raidén and G. Naylor (2008), ‘Unlocking the potential to influence government skills policy: a case study of the UK construction industry’, International Journal of Training and Development, 12 (4), 238–252. Nguyen, T.V. and S.E. Bryant (2004), ‘A study of the formality of human resource management practices in small and medium-size enterprises in Vietnam’, International Small Business Journal, 22 (6), 595–618. Nolan, C. and T.N. Garavan (2014), ‘HRD in smaller firms: Current issues, insights and future directions for research and practice’, in N.E. Chalofsky, T.S. Rocco and M. Morris (eds), Handbook of Human Resource Development, New Jersey: Wiley, pp. 526‒546. Nolan, C. and T.N. Garavan (2016), ‘HRD in SMEs: A systematic review of the literature’, International Journal of Management Reviews, 18 (1), 85‒107. OECD (2009), The Impact of the Global Crisis on SME and Entrepreneurship Financing and Policy Responses, Paris: Centre for Entrepreneurship, SMEs and Local Development, Organisation for Economic Co-operation and Development. OECD (2010), Innovation in Skills Development in SMEs Highlights, Paris: Centre for Entrepreneurship, SMEs and Local Development, Organisation for Economic Co-operation and Development. OECD (2013), Skills Development and Training in SMEs, Local Economic and Employment Development (LEED), Paris: Centre of Entrepreneurship, SMEs and Local Development, Organisation for Economic Co-operation and Development. Olejnik, E. and B. Swoboda (2012), ‘SMEs’ internationalisation patterns: Descriptives, dynamics and determinants’, International Marketing Review, 29 (5), 466‒495. Onkelinx, J., T.S. Manolova and L.F. Edelman (2015), ‘Human capital and SME internationalization: Empirical evidence from Belgium’, International Small Business Journal, early online publication, doi: 10.1177/0266242615591856.

GARAVAN 9781781954171 PRINT.indd 96

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­97 Padachi, K. and S.L. Bhiwajee (2016), ‘Barriers to employee training in small and medium sized enterprises: Insights and evidences from Mauritius’, European Journal of Training and Development, 40 (4), 1‒18. Pajo, K., A. Coetzer and N. Guenole (2010), ‘Formal development opportunities and withdrawal behaviours by employees in small and medium-sized enterprises’, Journal of Small Business Management, 48 (3), 281‒301. Panagiotakopoulos, A. (2015), ‘Creating a high-skills society during recession: Issues for policy makers’, International Journal of Training and Development, 19 (4), 253‒269. Patton, D. (2005), ‘Training in smaller firms’, in S. Marlow, D. Patton and M. Ram (eds), Managing Labour in Small Firms, London: Routledge, pp. 83‒108. Patton, D. and Marlow, S. (2002), ‘The determinants of management training within smaller firms in the UK. What role does strategy play?, Journal of Small Business and Enterprise Development, 9 (3), 260‒270. Rainbird, H. (1994), ‘The changing role for the training function: A test for the integration of human resource and business strategies?’, Human Resource Management Journal, 5 (1), 72‒90. Ram, M. (2000), ‘Investors in people in small firms: Case study evidence from the business services sector’, Personnel Review, 29 (1), 69–91. Ram, M. and P. Edwards (2003), ‘Praising Caesar not burying him: What we know about employment relations in small firms’, Work, Employment and Society, 17 (4), 719‒730. Ram, M., P. Edwards, M. Gilman and J. Arrowsmith (2001), ‘The dynamics of informality: Employment relations in small firms and the effects of regulatory change’, Work, Employment and Society, 15 (1), 845‒861. Raymond, L. and J. St-Pierre (2011), ‘Strategic capability configurations for the internationalization of SMEs: A study in equifinality’, International Small Business Journal, 31 (1), 82‒102. Rigg, C. and K. Trehan (2002), ‘Do they or don’t they? A comparison of traditional and discourse perspectives of HRD in SMEs’, Education and Training, 44 (8/9), 388‒397. Roffe, I. (2007), ‘Competitive strategy and influences on e-learning in entrepreneur-led SMEs’, Journal of European Industrial Training, 31 (6), 416‒434. Rowden R.W. (1995), ‘The role of human resource development in successful small to midsized manufacturing businesses: A comparative case study’, Human Resource Development Quarterly, 6 (4), 355‒373. Rowden, R.W. (2002), ‘The relationship between workplace learning and job satisfaction in US small to midsize businesses’, Human Resource Development Quarterly, 13 (4), 407–425. Rowden, R.W. and S. Ahmad (2000), ‘The relationship between workplace learning and job satisfaction in small to mid-sized businesses in Malaysia’, Human Resource Development International, 3 (3), 307‒322. Rutherford, M.W. P.F. Buller, and P.R. McMullen (2003), ‘Human resource management problems over the life cycle of small to medium-sized firms’, Human Resource Management, 42 (4), 321–335. Ruzzier, M., B. Antoncic, R.D. Hisrich and M. Konecnik (2007), ‘Human capital and SME internationalization: A structural equation modeling study’, Canadian Journal of Administrative Sciences, 24 (1), 15‒29. Sabella, A.R. and F. Analoui (2015), ‘Managerial training and development in telecommunication organisations in Palestine’, Journal of Management Development, 34 (6), 685‒703. Sackmann, S.A. and M.E. Phillips (2004), ‘Contextual influences on culture research’, International Journal of Cross Cultural Management, 4 (3), 370‒390. Sadler-Smith, E., S. Down and J. Field (1999), ‘Adding value to HRD: Evaluation, Investors in People and small firm training’, Human Resource Development International, 2 (4), 369‒390. Sambrook, S. (2007), ‘Exploring the notion of “time” and “critical” HRD’, in C. Rigg, J. Stewart and K. Trehan (eds), Critical Human Resource Development: Beyond Orthodoxy, Harlow: Pearson Education, pp. 23‒42.

GARAVAN 9781781954171 PRINT.indd 97

22/09/2017 16:31

98  Handbook of international human resource development Saru, E. (2007), ‘Organizational learning and HRD: How appropriate are they are for small firms?’, Journal of European Industrial Training, 31 (1), 36‒51. SBA Office of Advocacy (SBA) (2012), Frequently asked questions about small business, September 2012’, accessed 15 September 2012 at http://www.sba.gov/advocacy/7495/29581. SBA Office of Advocacy (SBA) (2014), Frequently asked questions about small business March 2014, accessed 16 May 2016 at www.sba.gov/sotes/default/files/advocacy/FAQ/ March_2014_0.pdf. Schwandt, T.A. (2000), ‘Three epistemological stances for qualitative inquiry: Interpretivism, hermeneutics, and social constructionism’, in N.K. Denzin and Y.S. Lincoln (eds), Handbook of Qualitative Research (2nd edition). Newbury Park, CA: Sage Publications, pp. 189‒213. Seymour, D. and P. Sandiford (2005), ‘Learning emotion rules in service organizations: Socialization and training in the UK public-house sector’, Work, Employment and Society, 19 (3), 547‒564. Sheehan, M. (2014), ‘Human resource management and performance: Evidence from small and medium-sized firms’, International Small Business Journal, 32 (5), 545‒570. Storey, D.J. (2004), ‘Exploring the link, among small firms, between management training and firm performance: A comparison between the UK and other OECD countries’, International Journal of Human Resource Management, 15 (1), 112‒130. Storey, D.J. (2011), ‘Optimism and chance: The elephants in the entrepreneurship room’, International Small Business Journal, 29 (4), 303‒321. Storey, D.J. and F.J. Greene (2010), Small Business and Entrepreneurship, Harlow, UK: Pearson Education. Storey, D.J. and P. Westhead (1997), ‘Management training in small firms: A case of market failure?’, Human Resource Management Journal, 7 (2), 61–71. Storey, D.J., G. Saridakis, S. Sen-Gupta, P.K. Edwards and R.A. Blackburn (2010), ‘Linking HR formality with employee job quality: The role of firm and workplace size’, Human Resource Management, 49 (2), 305–329. Susomrith, P. and A. Coetzer (2015), ‘Employees’ perceptions of barriers to participation in training and development in small engineering businesses’, Journal of Workplace Learning, 27 (7), 561‒578. Taylor, S. (2006), ‘Acquaintance, meritocracy and critical realism: Researching recruitment and selection processes in smaller and growth organizations’, Human Resource Management Review, 16 (4), 478–489. Teck-Hong, T. and Yong-Kean, L. (2012), ‘Organizational commitment as a moderator of the effect of training on service performance: An empirical study of small-to medium-sized enterprises in Malaysia’. International Journal of Management, 29 (1), 65‒85. Thassanabanjong, K., P. Miller and T. Marchant (2009), ‘Training in Thai SMEs’, Journal of Small Business and Enterprise Development, 16 (1), 678‒693. Thomas, R. and A. Linstead (2002), ‘Losing the plot? Middle managers and identity’, Organization, 9 (1), 71‒93. Tocher, N. and M.W. Rutherford (2009), ‘Perceived acute human resource management problems in small and medium firms: an empirical examination’, Entrepreneurship: Theory & Practice, 33 (2), 455‒479. Torraco, R.J. (2004), ‘Challenges and choices for theoretical research in human resource development’, Human Resource Development Quarterly, 15 (2), 171‒188. Turnbull, S. (2002), ‘Social construction research and theory building’, Advances in Developing Human Resources, 4 (3), 317‒334. Van der Sluis, J., M. van Praag M and W. Vijverberg (2005), ‘Entrepreneurship selection and performance: A meta-analysis of the impact of education in developing economies’, World Bank Economic Review, 19 (2), 225–261. Verreynne, M.L., P. Parker and M. Wilson (2013), ‘Employment systems in small firms: A multilevel analysis’, International Small Business Journal, 31 (4), 405‒431. Waddoups, C.J. (2011), ‘Firm size and work-related training: New evidence on incidence, intensity, and training type from Australia’, Journal of Labour Research, 32 (4), 390‒413.

GARAVAN 9781781954171 PRINT.indd 98

22/09/2017 16:31

IHRD in small firms and internationalising SMEs  ­99 Walker, E. and B. Webster (2006), Management competencies of women business owners. The International Entrepreneurship and Management Journal, 2 (4), 495‒508. Walker, E., J. Redmond, B. Webster and M. Le Clus (2007), ‘Small business owners: Too busy to train?’, Journal of Small Business and Enterprise Development, 14 (2), 294–306. Wang, J., H. Tolson, T.L. Chiang and T.Y. Huang (2010), ‘An exploratory factor analysis of workplace learning, job satisfaction, and organizational commitment in small to midsize enterprises in Taiwan’, Human Resource Development International, 13 (2), 147‒163. Watson, M. (2011), ‘Human resource development: the organisational and national framework’, in J. Beardwell and T. Claydon (eds), Human Resource Management: A Contemporary Approach (6th edition), Harlow: Prentice Hall, pp. 283‒334. Westhead, P. and D. Storey (1996), ‘Management training and small firm performance: Why is the link so weak?’, International Small Business Journal, 14 (4), 13‒24. Williamson, I.O. (2000), ‘Employer legitimacy and recruitment success in small businesses’, Entrepreneurship Theory and Practice, 25 (1), 27‒42. Wu, N., N. Bacon and K. Hoque (2014), ‘The adoption of high performance work practices in small businesses: The influence of markets, business characteristics and HR expertise’, The International Journal of Human Resource Management, 25 (8), 1149‒1169. Zientara, P. (2009), ‘Employment of older workers in Polish SMEs: Employer attitudes and perceptions, employee motivations and expectations’, Human Resource Development International, 12 (2), 135‒153.

GARAVAN 9781781954171 PRINT.indd 99

22/09/2017 16:31

5. IHRD: national cultural and cross‑cultural perspectives Yanqing Lai

INTRODUCTION International HRD (IHRD) is a relatively new field of academic study, primarily of US origin, and widely established in North American and some European countries (for example, the UK, the Netherlands). It is essentially a heterogeneous concept that has reached varying stages of development of maturity from nation to nation (Wang and McLean, 2007). For the past two decades, numerous calls have been made in the IHRD literature to examine whether, how and why IHRD policies and practices differ across borders, especially given intensifying business internationalisation and market globalisation, as well as increased cross-national activities by multinational corporations (MNCs). Scholars (for example, Hassi and Storti, 2011; Aycan, 2005) in cross-cultural and IHRD fields have strongly suggested that the cross-cultural lens is of vital importance to addressing differences and variation in IHRD activities across cultures. From a crosscultural perspective, diversity in the types of institutions and approaches to IHRD in different societies or nations is closely linked to the variations in traditions, values, attitudes and experiences (Chang, 2004). So what is national culture? Definitions of national culture have been numerous, but the lack of a unifying definition is agreed upon by researchers. Kluckhohn (1951) describes culture as patterned ways of thinking, feeling and reacting, transmitted by symbols and constituting distinctive achievement of human groups. Hofstede (1980, p. 16) views such transmission as the “Collective programming of the mind which distinguishes members of one human group from another”, and stresses that ‘values’ are the building blocks of culture. Specifically, members of a society are socialised into distinctive value priorities, and are driven by internalised cultural value orientations to behave in a way that reflects the characteristics of their society (Leung and Morris, 2014). More recently, Vainman and Brewster (2015) conceptualise culture as acquired knowledge that shapes values, instils attitudes and affects behaviours, and is used by members of a society to interpret experience and generate social behaviour (Luthans and Doh, 2009). The common theme underpinning these definitions is that 100

GARAVAN 9781781954171 PRINT.indd 100

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 101 national culture embraces a set of fundamental values that differentiates one group of people from another. This value-based approach (especially the use of Hofstede’s value dimensions) has thus dominated cross-cultural studies in terms of defining and measuring culture. There is a growing interest in linking societal and cultural values to the IHRD domain, however, applying a cross-cultural analysis has been relatively rare. Updated, the most influential and prevalent work pertaining to national culture is Hofstede’s (1997; 2001) five value dimensions, which have been widely adopted to examine cultural differences and assist managers in understanding cultural diversity. Among the essential components of IHRD, training and development has received considerable attention in the IHRD literature. For instance, differences across national cultures in terms of values, perceptions, attitudes and behaviours clearly explain significant national culture and cross-cultural distinctiveness in the roles of training participants and the way in which they do things (Hassi and Storti, 2011), because culture is seen through the lens of the oppression of certain behaviours and the acceptance of other behaviours (Adler, 1997). Similarly, the culture-bounded view provides a clear justification for the level of investment in employees’ training and development across cultures. Peretz and Rosenblatt (2011) find that in low power distance, high future-oriented and high uncertainty avoidance societies, investment in training is viewed favourably in order to reduce power gaps, facilitate future development and performance improvement, and avoid ambiguity and uncertainty, respectively. However, there is a general understanding that the IHRD literature (for example, Peretz and Rosenblatt, 2006; Hansen, 2003) appears to be more descriptive than analytical in nature, failing to provide strong underlying theoret­ ical explanations or grounds for IHRD theory and practices (Hassi and Storti, 2011). This chapter begins by discussing the relevance of national and crosscultural differences in IHRD theory and practices, situated within an analysis of contingency or fit theory. The primary value dimensions of culture typologies are then explained, including Hofstede’s (1980; 2001) work on culture, Trompenaars and Hampden-Turner’s (1998) five value dimensions and the GLOBE project (House et al., 2004). The next section discusses how the national cultural and cross-cultural differences shape the notion of HRD as a concept within the field of IHRD. This is followed by a detailed explanation of how major value dimensions of culture inform HRD systems, policies and practices. The following section provides implications for both future IHRD research and practices. The final section concludes the chapter.

GARAVAN 9781781954171 PRINT.indd 101

22/09/2017 16:31

102  Handbook of international human resource development

THE RELEVANCE OF NATIONAL CULTURE AND CROSS-CULTURAL DIFFERENCES FOR IHRD THEORY AND PRACTICE Given rapid globalisation and integration across national boundaries and the drive to integrate process and systems, MNCs are increasingly likely to attempt to standardise management practices. On the other hand, MNCs with a global workforce have to accommodate cultural differences in terms of designing and developing an appropriate and effective IHRD strategy in the face of local differentiation (Kochan et al., 2003). This is consistent with the argument of much cross-cultural research which emphasises the significance of national culture on management practices and employee work attitudes and behaviours (Fischer et al., 2005; Smith, 2001). The most influential work on national culture is Hofstede’s (1980, 2001) seminal work, which introduced a five-dimensional framework of national culture and has achieved widespread recognition in the crossculture management literature, in terms of guiding managers and practitioners to account for cultural diversity and cross-cultural differences in organisational decision-making processes. Rosenzweig and Nohria (1994) argue that HRM is the field of management most likely to be subjected to national difference, including cultural factors. HRD is not only an important mechanism to support and encourage the development of employees’ knowledge, skills and abilities and thus create desirable employee attitudes (Hassi and Storti, 2011), but also to generate new knowledge and facilitate intra- and inter-knowledge transfer (Winkler, 2014). This is particularly important for global organisations employing a diverse human workforce with mixed backgrounds. The findings of the survey by Development Dimensions International (Wellins and Rioux, 2000) reveal that 88 per cent of MNCs find that local culture significantly influences the ways in which they perform training and business activities in host countries. In the past two decades, there is growing interest in investigating the role of national culture in an IHRD context. Scholars suggest that the HRD models of different nations are culturally bounded, and the interpretation and definition of IHRD is a function of both local culture and social history (Hassi and Storti, 2011). The so-called ‘culturalists’ suggests that national culture shapes some facets of organisational practices more than others (Aycan, 2005). Indeed, actual IHRD practices have demonstrated significant variation and distinctions among organisations, industries, sectors and nations, as organisations in different contexts continuously adapt, modify and alter HRD policies and practices. For instance, the findings of Tregaskis and Dany’s study (1996) showed significant differences in the focus of training and development between firms in France

GARAVAN 9781781954171 PRINT.indd 102

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 103 and the UK, which reflects a divergence of cultural attitudes and legislative environments. In conceptual research, Weinberger (1998) concluded that there exists several commonly held theories of IHRD, including Learning theory (that is, adult learning, learning organisation, organisation learning), Performance theory, System theory, Economic theory, and Psychological theory. Given the interdisciplinary nature of IHRD, a great deal of overlap and interdependence is indicated amongst these theories. For instance, performance is a critical component in Economic, Systems and Psychological theory and links them all together as an additional foundation theory of IHRD (Swanson, 1995). Most theories offer a primary and general foundation to explain why IHRD is important to organisations and how IHRD practices can be developed and implemented to maintain and improve bottom-line firm performance in a systematic manner. In addition to this, Kuchinke (2003) argues that the majority of IHRD theories and theoretical models are generic and universal rather than contextspecific. The universalistic perspective of strategic HRM proposes that HRD is one of the core HRM policies and practices that is universally associated with better firm performance (Delery and Doty, 1996). This forms the basis of the culture-free view that HRD practices are identical across the globe, and highlights similarities and regularities across culture. In particular, universality indicates that certain aspects of IHRD can be generalised across national boundaries (Wang and McLean, 2007). However, researchers are not just interested in which IHRD policies and practices are adopted, but also how they are adopted and implemented. It is this second question that is considered as context- and culture-specific. The universalist approach has been constantly criticised, and an alternative approach – fit or contingency theory – was advanced in the field of IHRD. The debate about which approach is more appropriate was settled long ago in favour of contingency theory, particularly because of the strong logic in the context of strategic fit with contextual factors (Guest, 2011). The culture-bounded perspective emphasises differences and variations in management practice and individual behaviours across different cultures. Hence, the development of IHRD is not universal but culturally contingent through a cross-cultural lens and holds repercussions for employees’ perceptions of HRD policies and practices. Studies that (though most authors usually explicitly identify underlying theory framing their analysis) consider the relevance of national culture or cross-culture diversity to the IHRD domain may situate their analysis within the contingent perspective. Contingency theorists argue that IHRD practices would be more effective only when integrated with a specific organisational and environmental context (Chang and Huang, 2005; Wright and Snell, 1998).

GARAVAN 9781781954171 PRINT.indd 103

22/09/2017 16:31

104  Handbook of international human resource development Firms develop, introduce and implement distinctive IHRD policies and practices as a result of their response to contextual and environmental factors or contingencies. The effectiveness of IHRD practices is thus conditional upon its optimal match to the context (Sillince, 2005; Nadler and Tushman, 1997). Cummings (1980) suggested that national context should be considered as a contingency factor in understanding organisational effectiveness. Hence HRD, as a primary predictor of organisational effectiveness, is subject to cultural interpretation. This dualistic view of crosscultural diversity (universalist versus contingency) in HRD corresponds to the discussion of convergence and divergence issues in the IHRD literature. The convergence theory postulates that MNCs are induced to implement similar approaches to HRD across different nations or countries under the force of globalisation and technology revolution, whilst divergence theory argues that HRD practices should be differentiated due to a variety of national and institutional forces (for example, cultural factors) (Garavan and Carbery, 2012). However, the convergence–divergence view has been largely under-explored in IHRD literature. Fischer et al. (2005) proposed that national values are associated with HRD practices in the following way: management and employees’ personal values are shaped by their respective cultures, and they vary in the importance they assign to HRD practices, as well as in how they interpret implications. Sparrow (1996) finds that national values influence social cues that managers use to decode information in their psychological contract. Societal or national values shape human behaviours, preferences and decision-making, and are subsequently reflected in management decisions (Hassi and Storti, 2011). In other words, HRD policies and practices are initially devised based on manager’s perceptions of how the society is characterised through value dimensions of national culture, assuming what employees are like and how they will behave (Coget, 2011). On the other hand, employees are not passive recipients of IHRD policies and practices; their individual perceptions, attitudes and behavioural outcomes are also substantially influenced by national culture and value systems (Aycan, 2000). In parallel, employees make sense of management behaviours and exhibit behaviours consistent with rationality rooted within their own cultural lens (Fischer et al., 2005). Marquardt and Engel (1993) emphasise the importance of diagnosing and understanding trainees’ cultural values in order to successfully introduce and implement global HRD programmes. Thus, HRD theory has mainly focused on common and standardised processes (such as training and development) or roles (such as trainer, consultants) and accompanying knowledge and skills, which is supported by a universalistic perspective. However, these concepts ignore the pervasive role of national context in which IHRD practices have been exercised by

GARAVAN 9781781954171 PRINT.indd 104

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 105 transitional or global organisations. This is consistent with the proposition of contingency theory that the effectiveness of IHRD policies and practices is conditional upon the context in which they are implemented. There is clear evidence in the IHRD literature that cross-cultural diversity has salience in explaining IHRD systems, policies and practices, particularly sociocultural contexts (Garavan and Carbery, 2012). Hence, differences in national culture should be considered as an important contingency factor in understanding IHRD theory and practices in different cultural environments.

TYPOLOGIES OF NATIONAL CULTURE The IHRD literature is replete with the dimensions of national culture used to differentiate people’s value orientation across cultures and nations (Dorfman, Hanges and Brodbeck, 2004; Hofstede, 2001). Many cultural typologies have drawn from theory and statistical techniques, such as factor analysis (for example, Hofstede, 1980), smallest space analysis (for example, Schwartz, 1994; 1990), and standard analytic issues (for example, Inkeles and Levinson, 1969). Hofstede (1980) introduced four cultural dimension associated with work values, including individualism/­ collectivism, uncertainty avoidance, power distance, and masculinity/ femininity. A fifth dimension – long-term versus short-term orientation was added later (Hofstede, 2001). Trompenaars (1993) and Trompenaars and Hampden-Turner (1998) propose a five-dimension framework of culture, including universalism, collectivism, neutral, diffuse and achievement. This model has not been fully validated through rigorous empirical studies and thus has not been completely accepted by academia. A relatively more recent categorisation – the GLOBE project (House et al., 2004) that involved multiple interviews and focus groups from 62 countries, yielded nine cultural dimensions: power distance, in-group collectivism, institutional collectivism, uncertainty avoidance, future orientation, gender egalitarianism, assertiveness, humane orientation and performance orientation (Dorfman, Hanges and Brodbeck, 2004). The GLOBE project examines the cultural values and practices from two perspectives, in terms of asking how the respondents perceive things and how they think they should be. Despite using different items and wording, these cultural typologies are largely based on value dimensions discussed in the literature and therefore, some are conceptually similar. A list of major value dimensions of culture and their descriptions are presented in Table 5.1. Amongst all frameworks examining cross-culture differences, Hofstede’s is the most influential and most widely examined one. Based on the survey

GARAVAN 9781781954171 PRINT.indd 105

22/09/2017 16:31

106  Handbook of international human resource development Table 5.1 Cultural typologies Cultural Dimensions

Representative Researchers

Descriptions

Power  distance

Hofstede (1980); House et al. (1999); House et al. (2004) Hofstede (1980); House et al. (1999); House et al. (2004)

The extent to which members of an organisation or a society accept status hierarchy and unequal distribution of power. The extent to which organisational and societal institutional norms and practices emphasise group interests and collective actions. People distinguish their in-group to look after them and in exchange for their loyalty. The extent to which individuals feel comfortable with unknown and ambiguity, and rely on societal and organisational practices and norms, rules and procedures to alleviate the uncertainty. The extent to which members of an organisation or a society value interpersonal harmony more than money and achievement. The extent to which an organisation or a society fosters virtues of personnel steadiness and stability, protect face, respect for tradition and reciprocation of greetings, favours and gifts. The extent to which individuals engage in future-oriented behaviours, e.g. planning, investing and delaying gratification. The extent to which an organisation or a society rewards members for performance improvement and excellence. The extent to which an organisation and a society stress consistent and uniform procedure, formalisation in changing the way business is conducted, and fairness by treating all like cases in the same way. The degree to which an organisation or a society value informal networks and private understandings, informal alteration of accustomed patterns, and fairness by treating all cases on their special merit.

Collectivism

Uncertainty  avoidance

Hofstede (1980)

Femininity

Hofstede (1980)

Long term  orientation

Hofstede (2001)

Future  orientation

House et al. (1999); House et al. (2004) House et al. (1999); House et al. (2004) Trompenaars (1993)

Performance  orientation Universalism

Particularism

GARAVAN 9781781954171 PRINT.indd 106

Trompenaars (1993)

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 107 Table 5.1 (continued) Cultural Dimensions

Representative Researchers

Descriptions

Specificity

Trompenaars (1993)

Diffuseness

Trompenaars (1993)

Ascription

Trompenaars (1993)

Paternalism

Aycan et al. (2000)

Fatalism

Aycan et al. (2000)

High and   low context

Hall and Hall (1995)

Assertiveness

House et al. (2004)

Gender  egalitarianism Humane  orientation

House et al. (2004) House et al. (2004)

The extent to which there is a clear separation between private and business agendas; better compliance is ensured by clear, precise and detailed instructions. The extent to which private and business agendas are interpenetrated; subtle and responsive interpretation are allowed as ambiguous and vague instructions are present. The extent to which societal status is determined based on social class, family background, educational background or title rather than merit or achievement. The extent to which people in authority provide care, guidance and protection to their subordinates are accepted. In return, subordinates are expected to show loyalty and deference. The extent to which members of an organisation or a society believe that it is impossible to completely control the outcome of actions. The extent to which members of an organisation or a society deliver messages explicitly. In high-context cultures, little information is coded, explicit; while in low-context cultures, the majority of information is vested in the explicit code. The extent to which members of an organisation or a society are assertive in social relationship. The extent to which an organisation or a society values gender equality. The extent to which members of an organisation or a society is rewarded for positive behaviours.

Sources:  Chhokar et al. (2007); Aycan (2005).

GARAVAN 9781781954171 PRINT.indd 107

22/09/2017 16:31

108  Handbook of international human resource development data of 100,000 IBM employees in over 70 countries, Hofstede’s (1980) initial cultural classification is a reflection of a psychological process (Bond et al., 1987), which facilitates cross-cultural psychologists to select cultures for comparison on an a priori basis (Bond and Forgas, 1984). It has been praised for being parsimonious and broadly encompassing, and useful for conducting research on cultural differences across a wide range of organisational dimensons (Taras, Kirkman and Steel, 2010), including IHRD. However, Hofstede’s model has been over-emphasised (Leung et al., 2005) and has received growing scrutiny and critiques in relation to its impact, usefulness and limitations. One of the primary criticisms arose from the use of country as proxy for national cultures. Taras, Steel and Kirkman (2015) propose a number of reasons for this limitation, including increased cross-border travel and long-term migration, lower costs of instant communication worldwide, globalisation of media, and internationalisation of educational systems. Some researchers (for example, McSweeney, 2002) also question the general validity of Hofstede’s dimensions because they were derived from an existing survey without the support of theoretical explanation. Sondergaard (1994) argued the model might be outdated and unable to reflect changes over time. On the other hand, a group of scholars (Hofstede, 2010; Javidan et al., 2006; Hofstede, 2001) provide an insightful exchange between different cultural typologies, and conclude that no cultural models are error-free (Smith, 2006). In a comprehensive review of all the instruments used to measure culture, Taras, Rowney and Steel (2009) find that many models of cross-cultural diversity do not deviate significantly from Hofstede’s, both in terms of content and measurement mechanisms. Alternatively, in a special issue of Journal of International Business Studies (2015), four articles that offer new and innovative approaches to addressing challenging questions and limitations of current work on conceptualising and measuring culture were published. Leung and Morris (2014) and Venaik and Midgley (2015) suggest alternative conceptualisations of culture (that is, a situated dynamic framework approach, and a focus on cultural archetypes by expanding upon the psychometric valuebased approach and current operationalisation of culture, respectively), which have direct implications on measurement by building on and transcending the existing focus on value (Caprar et al., 2015). Thomas and his colleagues (2015) present a simple mechanism to measure a complex and equally controversial construct – of cultural intelligence. Finally, Luiz (2015) expands the understanding and operationalisation of culture, in terms of linking the conceptualisation and measurement of culture to intra-national linguistic and ethnic diversity by using the concept of ethnolinguistic fractionalisation (ELF). In spite of showing potential progress

GARAVAN 9781781954171 PRINT.indd 108

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 109 in conceptualisation and measurement of culture, the validity and merits of these alternative theoretical frameworks ought to be empirically tested and examined in future research.

NATIONAL AND CROSS-CULTURAL INFLUENCES ON IHRD When defining the notion of IHRD, the majority of the IHRD literature and research are strongly and commonly influenced by the definition of the American Society for Training and Development proposed by McLagan in the late-1990s (Ruona, 2000; Weinberger, 1998). That is “Human resource development is the integrated use of training and development, career development, and organisational development to improve individual, group and organisational effectiveness” (Paprock, 2003, p. 1). On the other hand, IHRD deals with human perceptions and behaviours in global organisations and therefore, it is significantly shaped by the national context in which it is examined and practiced. In a special issue of the Human Resource Development International (2001), McLean and McLean (2001) observe that IHRD practitioners use different terms to identify and describe the concept of IHRD across different national contexts. By definition, national context is partially determined by culture, which in turn plays a critical role in understanding multinational organisations and IHRD (Peterson, 1997). Scholars (Peterson, 1997; Hillion and McLean, 1997) have expressed concerns about the over-reliance on a US perspective, arguing that the definition of IHRD varies across countries and understanding cross-cultural differences is crucial to determining the way in which IHRD practitioners work. IHRD theory and concepts are indigenous to the national culture, heavily shaped by their distinct characteristics manifested in sophisticated historical, social, philosophical and cultural contexts (McLean, 1996). McLean and McLean (2001) find that the cross-cultural differences, particularly the value systems, are reflected in the definitions of IHRD collected from several national contexts in which the concept has emerged (for example, China, the UK, France and Japan). Similarly, Hansen and Brooks (1994) suggested that IHRD practitioners across nations used culturally-based perceptions and attitudes to define work and its effectiveness that may vary from a US-based HRD conceptualisation. As argued by Hillion and McLean (1997), the definition of IHRD terms varies from one nation to another, and the sociocultural influence is an important factor in determining the way in which IHRD practitioners work. In other words, there are no universally definitive statements of the meaning of IHRD.

GARAVAN 9781781954171 PRINT.indd 109

22/09/2017 16:31

110  Handbook of international human resource development On the other hand, the intensifying levels of economic globalisation and integration have pressured IHRD scholars and practitioners to consider the emergence of a global HRD construct. It is critical for cross-national and transnational organisations to have a globally accepted definition of IHRD that accommodates commonalities in relation to cross-national HRD activities (Wang and McLean, 2007). Similarly, Garavan and Carbery (2012) emphasise the value of exploring a global HRD construct, given the challenges faced by globalisation processes and the critical importance of transnational organisations within the IHRD field. Sooner or later the core elements of the knowledge base of IHRD need to be determined, as well as arriving at a consensus about what IHRD is and where the boundaries lie relative to other fields (Gold, Rodgers and Smith, 2003). Wang and McLean (2007) propose that any nation’s HRD consists of two components: one is universal and the other is particular. The former dimension refers to aspects of IHRD that can be generalised across boundaries and cultures; whereas the latter denotes to the contextbounded supporting and foundational theories. If researchers focus on universality, the construction of a basic and universal IHRM theoretical framework is feasible. For example, Cho and McLean (2004) identify a set of emerging models on the basis of many national HRD experiences. However, what varies significantly from nation to nation is how they are perceived, adopted and implemented in different cultural environments. Scholars also acknowledge that establishing a globally accepted definition of IHRD does not necessarily suggest a closure or unification of knowledge (Gold et al., 2013). The field of IHRD is constituted of the meanings and practices characterised by diversity, creativity and constant debate. Societal factors (for example, value systems) influence the learning styles and local perception of the conceptualisation of IHRD, resulting in diversity in the mission and means of many developmental aspects of IHRD (Hansen and Brooks, 1994). Such differences play a crucial role in the formulation and application of IHRD or global HRD frameworks in cross-cultural and cross-national enterprises. Metcalfe and Rees (2005) propose IHRD as a broad term encompassing processes that address the formulation and practices of IHRD systems, practices and policies at the organisational and societal level. They further map the boundaries of IHRD and categorise it in the global arena into three headings: global HRD, comparative HRD and national HRD. In particular, the field that involves the analysis of international frameworks in which HRD is subject to national cultural influence is termed comparative HRD. It studies the IHRD process in its broadest sense and in the national context in which it exists (Metcalfe and Rees, 2005), in terms of examining broader social and cultural issues of IHRD in a purely intra-

GARAVAN 9781781954171 PRINT.indd 110

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 111 national context (Brewster et al., 1996; Beardwell and Holden, 2001). Nevertheless, some researchers (for example, Paprock, 2003; Marquardt and Berger, 2003) comment that a lack of comparative HRD literature may create a barrier to understanding and examining the role and nature of IHRD in various nations and cultures.

NATIONAL AND CROSS-CULTURAL INFLUENCES ON IHRD STRUCTURES, POLICIES AND PRACTICES It is widely acknowledged that sociocultural dimensions at national levels affect the adoption and execution of actual HRD systems, policies and practices in different cultural settings. A variety of research has stressed the importance of cross-cultural differences in explaining IHRD policies and practices (Garavan and Carbery, 2012), in particular, in the field of cross-cultural training. Coget (2011) observes a significant worldwide variation in the amount that finance resource organisations invest in employee training and development. On average, Bulgarian, US, Swedish and Greek organisations allocate 4 to 6 per cent of their payrolls to employee training compared to approximately 1 to 2 per cent of that in Cyprus, Iceland and Slovakia. The cross-cultural literature suggests that this variation can be explained by national cultural differences across countries. Scholars (for example, Fischer et al., 2014; Aycan, 2005) have advanced speculative propositions on the relationship between some value dimensions and IHRD practices. Evidence (for example, Rao, 2013; Peretz and Rosenblatt; 2011; Coget, 2011) has showed that cultural value diversity indeed affects the development and implementation of IHRD systems from nation to nation, potentially from the aspects of the level of investment in, the selection, the content and the method of devising and implementing IHRD policies and practices. Based on the aforementioned theoretical frameworks of major cultural typologies (Table 5.1) as well as the supportive evidence reported in cross-cultural IHRD studies, the significance of value dimensions in relation to the development and implementation of IHRD policies and practices is explained in the remaining section. Across all cultural dimensions, the most popular and influential cultural difference between countries is the individualism–collectivism dimension (Caprar et al., 2015). The difference in the construction of the individualism and collectivism centres on the relationship between the individual and the group, and the degree of interdependence between members that is aligned with people’s self-concept of ‘I’ (individual) or ‘we’ (group) (Hofstede, 1980). Individualists are emotionally detached from their

GARAVAN 9781781954171 PRINT.indd 111

22/09/2017 16:31

112  Handbook of international human resource development i­n-groups and emphasise self-reliance, independence, pleasure and the pursuit of happiness (Triandis, 1994). In contrast, collectivists are more concerned about the outcomes of their actions on in-groups, sharing resources with in-group members, feeling interdependent with in-group members and being involved in the lives of in-group members (Hui and Triandis, 1986). In collectivist cultures, group achievement is emphasised over individual’s goals, and in-group members share responsibility for addressing welfare issues (House et al., 2004). Earley (1994) suggests that the individual/collectivism value difference could reflect the content and method (that is, the way in which information is used in the process of training) of employee training and development. This proposition was supported by his experiment on Chinese and American employees, in which he revealed that group-focused training emphasised the collective self and enhancement of in-group capability was more effective among Chinese participants (collectivism), whereas the individual-focused training valued personal capability and private self among American participants (individualism). Moreover, the importance of training and development is more likely to be recognised in collectivistic cultures, because such activ­ ities serve an additional purpose of increasing loyalty and commitment to the organisation. Wong et al. (2001) observe that Chinese organisations provide training to their employees as a tool to instil the perception that firms treat them well in exchange for their hard work and commitment. In terms of who shall participate in training and development programmes that are closely linked to career advancement, Wilkins (2001) argues that there is in-group favouritism based on kinship or tribal ties in collective societies, such as personal relationships (that is, guanxi) in China. Hofstede (2001) argues that power distance and uncertainty avoidance are the most important dimensions for organisations. Power distance describes what power means to members of a society and whether the unequal distribution of power is accepted in an organisation or a society (Hofstede, 1997). One crucial aspect of power distance is the nature of interpersonal relationships in terms of hierarchy (Hofstede, 1980). In highpower distance cultures, power inequality and a social hierarchal order are accepted. Everyone has a place in society and the justification for power differences is not required. Uncertainty avoidance refers to the extent to which members of an organisation or society are comfortable with uncertainty and ambiguity. In strong uncertainty avoidance societies, people view unknown situations as threatening and uncomfortable, and organisational changes as undesirable. Clear and rigid social norms and formal rules and procedures are therefore applied to promise certainty and stability, and protect conformity (House et al., 2004). The uncertainty avoidance and power distance dimensions have impor-

GARAVAN 9781781954171 PRINT.indd 112

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 113 tant implications in relation to the level of investment in, and the design and delivery (that is, method) of HRD policies and practices across cultures. Peretz and Rosenblatt (2011) argue that in high power distance cultures or societies, HRD practices (that is, investment in training and development) are considered as undesirable because they may narrow power gaps in terms of making skills and competencies accessible to all levels of organisations. In contrast, cultures embedded in avoiding certainty are more likely to invest in training and development, because such IHRD practices stabilise firms’ control over the mixture and structure of the human capital pool (Peretz and Rosenblatt, 2006). Jeanquart and Van Eck Peluchette (2000) find that German firms that embrace high uncertainty avoidance allocate a significant proportion of corporate budget on training as opposed to that in US firms (Handy, 1988). Regarding the design and delivery of training, in both high uncertainty avoidance and high power distance societies one-way teaching or lecturing with definitive answers and guidelines provided by instructors is preferred instead of participative discussion (Parnell and Hatem, 1999; Thornhill, 1993; Laurent, 2006). Such cultures assume that wisdom resides in hierarchy and age and thus, training instructors are preferred to be high-level managers rather than external consultants and trainers (Peretz and Rosenblatt, 2011; Wright, Szeto and Cheng, 2002). In some high uncertainty avoidance Asian countries (for example, India, South Korea), firms tend to take a top-down or centralised approach in terms of delegating the main training and HRD responsibilities to middle managers or supervisors (Yadapadithaya and Stewart, 2003; Jeong, 2000). In addition to this, Tanova and Nadiri (2005) find that Turkish firms (score high on uncertainty avoidance) tend to adopt a documented policy for training and development rather than an ad hoc approach that is usually more prevalent in low uncertainty avoidance Scandinavian cultures (for example, Norway and Finland) (Hytonen, 2003; Skule, Stuart and Nyen, 2002). Other than social hierarchy, paternalism is considered as the other important component of power distance. It refers to a dyadic and differentiated hierarchical relationship between superiors and subordinate (Aycan et al., 2000). In a paternalistic relationship, superiors provide guidance, protection, nurturance and care to the subordinates and in return, subordinates are expected to be loyal and deferent to the superior. This mutual supporting and dependent relationship results in an emphasis on relationships and people. In such contexts, the needs of employee training and further career development are acknowledged and valued because paternalism is concerned with the well-being of employees through offering high levels of supports (Aycan, 2005). In addition to this, the training

GARAVAN 9781781954171 PRINT.indd 113

22/09/2017 16:31

114  Handbook of international human resource development needs and design are expected to be determined and delivered by paternalistic managers in an authoritarian or consultative way (Wilkins, 2001), due to the close and interpersonal relationship between superiors and their employees. Fatalism, as a less commonly studied cultural variable, is related to the uncertainty avoidance dimension. Aycan et al. (2000) refer to fatalism as a belief that it is impossible to control the outcomes of people’s actions. Trying too hard, making long-term plans and taking preventative action are considered as unnecessary because events are perceived to be beyond the control of individuals. Aycan (2005) suggest that fatalism affects managerial attitudes and decisions towards the level of investment in employee training and development. In societies that embrace fatalism, investments in HRD activities for long-term benefits are more likely to be capped because organisations tend to assume that employees are not changeable over time. Future orientation refers to the degree to which an organisation or a society values future-oriented behaviours, such as planning, investing in the future and delaying gratification (House et al., 2004). This value dimension also influences HRD practices, particularly the investment in HRD practices, such as employee training and development, which is among the most typical of future-oriented practices to cope with forthcoming organisational needs. Meredith (2008) and Dessler (2006) argue that learning and professional development play a central role in emphasising future employability in high future oriented cultures. Using a multiple case study approach, Rao (2013) reveals that is a society’s futureorientation value dimension is significantly and positively related to the adoption of several instructor-led and e-learning based training initiatives in India firms. Aycan (2005) suggests that performance orientation dimension is intrinsically linked to training and development HRD practice, including the level of investment and selection for people to receive training. Performance orientation refers to the extent to which members of a society are rewarded based on his/her performance improvement and excellence (Chhokar, Brodbeck and House, 2007). Training, on the other hand, is geared to improve employees’ skills and team capabilities that is associated with performance advancement and quality (Peretz and Rosenblatt, 2011). Hence, in performance-oriented cultures, there is a substantial budgetary allocation to and widespread deployment of training and development activities (Wilkins, 2001; Tsang, 1994). Furthermore, employees who perform well are more likely to be selected for attractive training and personnel development programmes as a reward for their performance excellence.

GARAVAN 9781781954171 PRINT.indd 114

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 115 The universalist dimension describes the degree to which consistency and uniformity are valued; the degree to which institutional formal ways are used to undertake changes in business, and fairness is ensured based on treating all like cases in the same way in the society (Trompenaars, 1993). This cultural variable is associated with the method of executing HRD policies and practices in the area of employee training and development, organisational development and career development. In universalistic cultures, a high level of consistency, formalisation and standardisation in HRD systems is expected as opposed to particularist cultures where systems are embedded in an informal and ad hoc manner. The universalist dimension also has implications for training. All members are expected to be treated equally in terms of receiving identical training programmes instead of having differentiating training agendas that suit personal needs. According to Trompenaars (1993), ascription-oriented cultures embrace societal class, family background, educational background or title rather than merits or achievement. Hence, this cultural value probably is negatively related to firms’ investment decisions in training and professional development, because the higher societal class status is expected to be attained by employees themselves. Where training and development and/or career advancement prospects do occur, the training selection process and/or received promotion process may be largely determined by the societal status of the individual rather than their excellence and accomplishment. The high–low context culture differs according to whether the information is delivered explicitly or implicitly in an organisation or society (Hall and Hall, 1995). In high-context societies, values, norms and traditions are interrelated to create an environment where subtle messages and meanings are clear to members of the society that requires no further detailed explanation (Hall, 1986). Hence, the high–low context framework affects the design and delivery of HRD policies and practices. Ndoye (2003) suggests that learning constitutes a collective experience rather than an individual activity among Senegalese farmers, largely because of a high context Senegalese culture in which members of the community are aware of the rules and roles and only a minimum amount of information needs to be transmitted through subtle messages and meanings. The feminine–masculine dimension, refers to the degree to which a society values relationship build-up, interpersonal harmony and modesty more than money, power and achievement (Hofstede, 1997), This appears to affect the method and design aspects of HRD policies and practices. In feminine cultures, the adoption of hard HRD policies and practices are inhibited and discouraged, whereas in masculine cultures soft practices are inclined to be avoided (Hassi and Storti, 2011). This is probably why

GARAVAN 9781781954171 PRINT.indd 115

22/09/2017 16:31

116  Handbook of international human resource development the concept of IHRD is more acceptable in feminine-oriented Scandinavia where social services and individuals’ well-being are emphasised in organ­ isations. Indeed, researchers observe a strong cooperation between the government, private sector organisations and employee federations with respect to labour issues in these nations (that is, Sweden, Denmark and Norway), including investment in employee training and development (Kjellberg, Soderstrom and Svensson, 1998; Madsen and Larsen, 1998; Skule, Stuart and Nyen, 2002). Last but not least, gender egalitarianism and humane orientation – two newly introduced cross-cultural variables from the GLOBE project – have not been widely examined in literature. Gender egalitarianism that examines the degree to which a society values gender equality (House et al., 2004) is expected to influence the selection of participants that will benefit from HRD policies and practices. In gender egalitarianism oriented cultures, female employees are expected to be given the same opportunities in the area of training and career development as their male counterparts. Humane orientation denotes the degree to which members of an organisation or society are rewarded for positive behaviours (House et al., 2004). One example of individuals’ positive behaviour is performance excellence and quality. Therefore, this value dimension may affect HRD policies and practices in a manner which is similar to performance orientation, that is, the level of investment in HRD and the selection of HRD beneficiaries. Understanding cultural differences and cross-cultural diversity is imperative for international organisations in order to develop and implement HRD strategy across countries, and to ensure the effectiveness of IHRD systems. Failing to take the host nations’ cultural beliefs and values into account may result in the unsuccessful adoption of performance improvement interventions (for example, training) (Tomé, 2011; Lavelle, 2006). Yet, empirical research applying a cross-cultural lens to IHRD policies and practices has been so far deficient. It is hoped that the above discussion (see the summary in Table 5.2) provides general and fundamental guidelines in stimulating future research in this area, and offers insights for managers and practitioners on how IHRD policies and practices are varied and adopted across cultures.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE The IHRD research has witnessed an increased interest in international, comparative and cross-cultural HRD, however, one of the important questions which remains to be answered in cross-cultural research is the

GARAVAN 9781781954171 PRINT.indd 116

22/09/2017 16:31

117

GARAVAN 9781781954171 PRINT.indd 117

22/09/2017 16:31

The level of investment in HRD is high in collectivism cultures as opposed to that in individualism cultures, based on the notion of exchange between employees and organisations. In high power distance uncertainty avoidance cultures, there is a tendency towards investing in HRD in order to stabilise firms’ control over the mixture and structure of human capital pool. In high power distance cultures, there is a low level of investment in HRD, due to the concern that it may narrow skill and competency gaps between different levels of employees.

In paternalism-oriented cultures, there is a high level of investment in HRD, because of the needs of employee training and future developments are acknowledged.

Collectivism/  Individualism

Paternalism

Power  distance

Uncertainty  avoidance

Levels of investment in HRD

Value dimensions

In collectivism cultures, there is in-group favouritism based on kinship or tribal ties.

Selection of employees benefit from HRD

In high uncertainty avoidance and high power distance, one-way teaching or lecturing with definitive answers and guidelines provided by instructors rather than participative discussion. Instructors are more likely to be middle managers or supervisors rather than external consultants or trainers. In paternalismoriented cultures, the training is provided by paternalistic managers in authoritarian or consultative way.

Design and delivery (i.e. method) of HRD practices

In paternalism-oriented cultures, the training contents are determined by paternalistic managers.

In collectivism cultures, group-focused HRD policies are favoured, whereas in individualism culture, individual-focused HRD polices are preferred.

The selection of HRD strategy and content

Table 5.2 Summary of the significance of national cultural value dimensions in determining HRD policies and practices

118

GARAVAN 9781781954171 PRINT.indd 118

22/09/2017 16:31

In fatalism-orientated cultures, investment in HRD for longterm benefits is not accounted for, because organisations tend to assume that employees are not changeable over time. In future-orientated cultures, there is a tendency towards investing in HRD, because learning and professional development is crucial to future employability in high future-orientated cultures. In performance orientated cultures, there is a substantial budgetary allocation to and widespread deployment of HRD activities in order to improve job performance.

Fatalism

Performance  orientation

Future  orientation

Levels of investment in HRD

Value dimensions

Table 5.2 (continued)

In performance orientated cultures, high-performing employees are more likely to be selected for attractive HRD activities as a reward for their performance excellence and quality.

Selection of employees benefit from HRD

Design and delivery (i.e. method) of HRD practices

The selection of HRD strategy and content

119

GARAVAN 9781781954171 PRINT.indd 119

22/09/2017 16:31

High/low context

Ascription

Universalist/  particularist

In ascription-orientated cultures, there is a low level of investment in HRD, because the higher societal class status is expected to be attained by themselves or by descent.

In universalistic cultures, all members of the society are expected to be treated fairly in terms of receiving identical HRD activities rather than differentiated HRD activities that suit personal needs. In ascription-orientated cultures, the selection process of employees sent to HRD programs is largely determined by the societal status of the individual rather than their excellence and accomplishment. In high-context cultures, HRD policies and practices are explicitly and clearly delivered, only a minimum amount of information regarding HRD needs to be transmitted through subtle messages and meanings.

In universalistic cultures, there is a high level of consistency, formalisation and standardisation in HRD compared to an informal and ad hoc approach in particularist cultures.

120

GARAVAN 9781781954171 PRINT.indd 120

22/09/2017 16:31

Humane  orientation

Gender  egalitarianism

Feminine/  masculine

Value dimensions

In Humane orientated cultures, there is potentially a high level of investment in HRD as a reward for positive employee behaviours.

Levels of investment in HRD

Table 5.2 (continued)

In gender egalitarianism orientated cultures, employees receive equal opportunities in HRD training and development programs, regardless the gender. In humane orientated cultures, employees who exhibit positive behaviours are more likely to be rewarded by attractive HRD activities.

Selection of employees benefit from HRD In feminine-orientated cultures, the adoption of hard HRD policies and practices are inhibited and discouraged, and soft practices are favoured, vice versa.

Design and delivery (i.e. method) of HRD practices

The selection of HRD strategy and content

IHRD: national cultural and cross-cultural perspectives  ­ 121 well-known difficulty of defining and measuring culture. In spite of continuous critiques and refinement of major cultural frameworks (that is, Hofstede and GLOBE models), there is a lack of theoretically clear and effective means of capturing the nature of culture, especially beyond the works of Hofstede and the GLOBE project. Many cultural practices are measured at national level, using country as an analysis unit (for example, Taras, Kirkman and Steel, 2010; Kirkman, Lowe and Gibson, 2006). However, there is growing evidence justifying the limitations of country as an appropriate container of culture, suggesting that national borders are not automatically aligned with ethnic and tribal boundaries (Caprar et al., 2015; Taras, Steel and Kirkman, 2015). For instance, McKenna (1998) studied national values in two Singaporean organisations and found that generalised dimensional differences identified by Hofstede did not sustain under scrutiny. Hence, future IHRD research are suggested to pay attention to intra-cultural variation, and examine possible regions or subcultures within a nation to avoid generalities and to refine our understanding of cultural influence in cross-border HRD activities, such as use of configuration and cross-level analysis and the polycontextual approach. Furthermore, cross-cultural HRD studies have been dominated by quantitative research methodology, using self-reported surveys and questionnaires based on stated preferences evaluated on Likert-type scales. However, an overreliance on a single approach to measure culture may perpetuate a reductionist view of culture (Caprar et al., 2015). A second sensible suggestion is to encourage and invite future research embedded in qualitative and mixed methods in order to address the issues associated with traditional and conventional conceptualisation and measure of culture in comparative HRD research. The comparative and cross-cultural HRD view advocates that the effectiveness of HRD policies and practices is congruent with societal and cultural factors, that is, national culture has a direct effect on HRD policies and practices adopted by transnational organisations. The literature to date has focused on the value constructs developed by Hofstede and the GLOBE project, and how HRD practices differ across societies. Based on both the existing conceptual and empirical work in cross-cultural research, future research can further investigate the extent to which sociocultural factors are associated with HRD practices, and explore whether a crosscultural context may lead to different HRD outcomes. Culture, on the other hand, may indirectly influence organisational behaviours through exercising a moderating effect. There are contingent factors that directly determine HRD strategy, whereas culturally driven preferences shape the exercise of such choice between alternative HRD practices (Child, 1981, p. 318). This reinforces the proposition of comparative studies of

GARAVAN 9781781954171 PRINT.indd 121

22/09/2017 16:31

122  Handbook of international human resource development HRD that national culture needs to engage with a variety of characteristics including national institutions, industry sectors and wider business environment, and distinctive configurations of such factors determine HRD outcomes at national, organisational and employee-levels (Garavan and Carbery, 2012). Future research can explore issues pertaining to the moderating effect of culture on IHRD, in terms of accounting for the interplay of national, cultural, institutional context and organisational characteristics. The culture-bounded perspective of HRD also makes significant contributions to and provides important implications for HRD practice, in terms of offering an in-depth understanding of why HRD practices differ significantly across nations or societies. More specifically, the crosscultural variation in HRD practices appears evident from four perspectives, including the importance of HRD to organisations reflected in the level of investment in HRD, the method of delivering HRD practices, the selection of HRD strategies and content, as well as the selection process of participants that attend HRD activities. In collectivistic, high uncertainty avoidance, low power distance, paternalism-orientated, futureorientated, performance-orientated and/or humane-orientated societies, multinational organisations that compete in such cultural environments are strongly recommended to allocate a large proportion of corporate budgets to HRD; whereas in fatalism- and or ascription-oriented cultures, levels of investment in HRD should be reduced. Regarding the selection process of employees assigned to attend HRD programmes, cultures that encompass value dimensions including collectivism (ingroup favouritism), performance orientation (performance excellence and quality), ascription orientation (societal status), humane orientation (positive behaviours), universalist (equal opportunities) and/or gender egalitarianism (equal opportunities regardless gender) should be taken into account by global managers and IHRD practitioners. In cultures or societies that embrace high uncertainty avoidance and power distance (one-way lecturing or teaching delivered by internal trainers or supervisors), paternalism (paternalistic managers in an authoritarian or consultative way), universalist (consistent formalised and standardised HRD practices), high-context (explicit and clear HRD practices) and feminine (soft HRD practices), the design and delivery of HRD practices should be culturally contingent. Last but not least, it is suggested that in collectivistic cultures group-focused HRD policies are preferred as opposed to individual-focused training in individualism cultures. In paternalismoriented societies, HRD practitioners should be aware that the training content or focus is in the determination of paternalistic managers in multinational firms.

GARAVAN 9781781954171 PRINT.indd 122

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 123

CONCLUSION Owing to globalisation and internationalisation of business, the importance of national, cultural and cross-cultural differences for multinational organisations has been more pronounced in the IHRD literature. For the past two decades, cross-cultural studies have demonstrated that national culture influences organisational behaviours, including HRD strategy, policies and practices (Fischer et al., 2014; House et al., 2004; Aycan et al., 2000; Adler, 1997). In spite of a burgeoning body of criticism in relation to its applicability, the value-based approach that primarily draws from Hofstede’s famous work on culture has dominated cross-cultural studies in terms of conceptualising and measuring national culture. Across all cultural typologies (for example, Hofstede, 1980, 2001; Trompenaars, 1993; Trompenaars and Hampden-Turner, 1998; House et al., 2004), Hofstede’s five value-dimension theoretical framework has been the most widely adopted and cited cultural model. More importantly, there are significant commonalities and similarities between different culture classifications, because of the heavy reliance on the value-based method. The culture-contingent perspective on IHRD clearly fits the propositions of contingency theory that HRD policies and practices are not universal but culturally bounded. The successful implementation of HRD policies and practices is conditional upon the optimal match between a proposed strategy and its context (Sillince, 2005). In the field of IHRD, national culture that encompasses norms, values and their subsequent implications for beliefs, expectations, orientations and behaviours predicts successful deployment and implementation of HRD strategy in a destination country.

REFERENCES Adler, N. (1997). International Dimensions of Organisational Behavior (3rd edition). Cincinnati, Ohio: South-Western College Publications. Aycan, Z. (2000). Cross-cultural Industrial and Organizational Psychology: Contributions, Past Developments and Future Direction. Journal of Cross-Cultural Psychology, 31(1), 110‒128. Aycan, Z. (2005). The Interplay between Cultural and Institutional/Structural Contingencies in Human Resource Management Practices. International Journal of Human Resource Management, 16(7), 1083‒1119. Aycan, Z., Kanungo, R.N., Mendonca, M., Yu, K., Deller, J., Stahl, G. and Shursid, A. (2000). Impact of Culture on Human Resource Management Practices: A 10-Country Comparison. Applied Psychology, 49(1), 192‒221. Beardwell, I. and Holden, L. (2001). Human Resource Management: A Contemporary Approach (3rd edition). England, Harlow: FT Prentice Hall. Bond, M.H. and Forgas, J.P. (1984). Linking Person Perception to Behaviour Intention

GARAVAN 9781781954171 PRINT.indd 123

22/09/2017 16:31

124  Handbook of international human resource development across Cultures: The Role of Cultural Collectivism. Journal of Cross-Cultural Psychology, 15 (3), 337‒352. Bond, M.H., Akhtar, H., Ball, P., Bhanthumnavin, D. and Boski, P. (1987). Chinese Values and the Search for Culture. Journal of Cross-Cultural Psychology, 18(2), 143‒164. Brewster, C., Tregaskis, O., Hegewisch, A. and Mayne, L. (1996). Comparative Research in HRD: A Review and an Example. International Journal of Human Resource Management, 7(3), 585‒604. Caprar, D.V., Devinney, T.M., Kirkman, B.L. and Caligiuri, P. (2015). Conceptualising and Measuring Culture in International Business and Management: From Challenges to Potential Solutions. Journal of International Business Studies, 46, 1011‒1027. Chang, W. (2004). A cross-cultural Case Study of a Multinational Training Program in the United States and Taiwan. Adult Education Quarterly, 54(3), 174‒192. Chang, W.A. and Huang, T.C. (2005). Relationship between Strategic Human Resource Management and Firm Performance: a Contingency Perspective. International Journal of Manpower, 26(5), 434‒449. Chhokar, J.S., Brodbeck., F.C. and House, R.J. (2007). Culture and Leadership across the World. The GLOBE Book of In-depth Studies of 25 Societies. New York: Lawrence Erlbaum Associates. Child, J.D. (1981). Culture, Contingency and Capitalism in the Cross-National Study of Organisations. Research in Organisational Behaviour, 3, 303‒356. Cho, E. and McLean, G.N. (2004). What We Discovered about NHRD and What it Means for HRD. Advances in Developing Human Resources, 6(3), 382‒393. Coget, J. (2011). Does National Cultural Affect Firm Investment in Training and Development? Academy of Management Perspective, November, 85‒87. Cummings, L. (1980). State of the Art: Organisational Behaviour in the 1980s. Decision Sciences, 12, 365‒377. Delery, J.E. and Doty, H.D. (1996). Modes of Theorising in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Configurational Performance Predications. Academy of Management Journal, 39(4), 802‒835. Dessler, G. (2006). Expanding into China. What Foreign Employers Should Know about Human Resource Management in China Today? SAM Advanced Management Journal, 71(4), 11‒23. Dorfman, P.W., Hanges, P.J. and Brodbeck, F.C. (2004). Leadership and Cultural Variation. In House, R., Hanges, P., Javidan, M., Dorfman, P. and Gupta, W. (eds), Culture, Leadership, and Organisations: The GLOBE Study of 62 Societies (pp. 779‒819). Thousand Oaks, CA: Sage Publications. Earley, P.C. (1994). Self or Group? Cultural Effects of Training on Self-Efficacy and Performance. Administrative Science Quarterly, 39(1), 89‒117. Fischer, R., Redford, P., Ferreira, M.C., Harb, C. and Assmar, E.M.L. (2005). Organisational Behaviour across Cultures: Theoretical and Methodological Issues for Developing Multilevel Framework Involving Culture. International Journal of Cross Culture Management, 5(1), 27‒48. Fischer, R., Ferreira, M.C., Assmar, E.M.L., Baris, G., Berberoglu, G., Dalyan, F., Wong, C.C. and Hassan, A. (2014). Organisational Practices across Cultures: An Exploration in Six Cultural Contexts. International Journal of Cross Cultural Management, 14(1), 105‒125. Garavan, T.N. and Carbery, R. (2012). A Review of International HRD: Incorporating a Global HRD Construct. European Journal of Training and Development, 36(2/3), 129‒157. Gold, J., Rodgers, H. and Smith, V. (2003). What is the Future for Human Resource Development Professionals? A UK Perspective. Human Resource Development International, 6(4), 437‒456. Gold, J., Holden, R., Stewart, J., Iles, P. and Beardwell, J.E. (2013). Human Resource Management, Theory and Practices (2nd edition). Basingstoke: Palgrave Macmillan. Guest, D. (2011). Human Resource Management and Performance: Still Searching for Some Answers. Human Resource Management Journal, 21(1), 3‒13.

GARAVAN 9781781954171 PRINT.indd 124

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 125 Hall, E.T. and Hall, M.R. (1995). Key Concepts: Underlying Structures of Culture. In Lane, H.W., Di Stefano, J.J. and Maznevski, M.L. (eds), International Management Behaviour (pp. 199‒204). Cambridge, MA: Blackwell. Hall, S. (1986). Cultural Studies – Two Paradigms. In Collins, R., Curran, J., Garnham, N., Scannell, P., Schlesinger, P. and Sparks, C. (eds), Media Culture & Society – A Critical Reader (pp.46‒47). London: Sage Publications. Handy, C. (1988). Understanding Voluntary Organisations. Harmondsworth: Penguin. Hansen, C.D. (2003). Cultural Myths in Stories about Human Resource Development: Analysing the Cross-Cultural Transfer to American Models of Germany and the Cote d’Ivoire. International Journal of Training and Development, 7(1), 16‒30. Hansen, K.D. and Brooks, A.K. (1994). A Review of Cross-Cultural Research on Human Resource Development. Human Resource Development Quarterly, 5(1), 55‒74. Hassi, A. and Storti, G. (2011). Organisational Training across Cultures: Variation in Practices and Attitudes. Journal of European Industrial Training, 35(1), 45‒70. Hillion, B. and McLean, G.N. (1997). The Status of Human Resource Development in French Companies. In Torraco, R.J. (ed.), Academy of Human Resource Development 1997 Conference Proceedings (pp. 694‒701). Baton Rouge, LA: AHRD. Hofstede, G. (1980). Culture’s Consequences: International Differences in Work-related Values. Beverly Hills, CA: Sage Publications. Hofstede, G. (1997). Cultures and Organisations: Software of the Mind. London: McGraw-Hill. Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations across Nations. Beverly Hills, CA: Sage Publications. Hofstede, G. (2010). The GLOBE Debate: Back to Relevance. Journal of International Business Studies, 41, 1339‒1346. House, R., Hanges, P., Javidan, M., Dorfman, P. and Gupta, V. (2004). Culture, Leadership, and Organisations: The GLOBE Study of 62 Societies. Thousand Oaks, CA: Sage Publications. House, R.J., Hanges, P.J., Ruiz-Quintanilla, S.A. Dorfman, P.W., Javidan, M., Dickson, M.W., Gupta, V. and 159 co-authors (1999). Cultural influences on leadership and organ­ izations: Project GLOBE. In W. Mobley, J. Gessner and V. Arnold (eds), Advances in Global Leadership (pp. 171‒233). Stamford, CN: JAI Press. Hui, C.H. and Triandis, H.C. (1986). Individualism–Collectivism: A Study of Cross-Cultural Researchers. Journal of Cross-Cultural Psychology, 17, 225‒248. Hytonen, T. (2003). International Briefing 14: Training and Development in Finland. International Journal of Training and Development, 7(2), 124‒137. Inkeles, A. and Levinson, D.J. (1969). National Character: The Study of Model Personality and Sociocultural Systems. In Lindzey, G. and Aronson, E. (eds), The Handbook of Social Psychology IV (pp. 418‒506). New York: McGraw-Hill. Javidan, M., House, R.J., Dorman, P.W., Hanges, P.J. and Sully de Luque, M. (2006). Conceptualising and Measuring Cultures and Their Consequences: A Comparative Review of GLOBE’s and Hofstede’s Approaches. Journal of International Business Studies, 37, 897‒914. Jeanquart, S. and Van Eck Peluchette, J. (2000). The Use of Training by US and German Firms: Does Culture Make a Difference? Unpublished Proceedings of the Midwest Academy of Management, Chicago. Jeong, J. (2000). Skill Formation of Engineers in Large Korean firms: An Analysis from a Comparative Perspective. International Journal of Training and Development, 4(1), 66‒78. Kirkman, B.L., Lowe, K.B. and Gibson, C.B. (2006). A Quarter Century of Culture’s Consequences: A Review of Empirical Research Incorporating Hofstede’s Cultural Values Framework. Journal of International Business Studies, 37, 285‒320. Kjellberg, Y., Soderstrom, M. and Svensson, L. (1998). Training and Development in the Swedish Context: Structural Change and a New Paradigm. Journal of European Industrial Training, 22(4‒5), 205‒216. Kluckhohn, C.K. (1951). Values and Value Orientations in the Theory of Action. In Parsons, T. and Shils, E.A. (eds), Towards a General Theory of Action (pp. 388‒433). Cambridge, MA: Harvard University Press.

GARAVAN 9781781954171 PRINT.indd 125

22/09/2017 16:31

126  Handbook of international human resource development Kochan, T., Bezrukova, K., Ely, R., Jackson, S., Joshi, A. and Jehn, K. (2003). The Effects of Diversity on Business Performance: Report of the Diversity Research Network. Human Resource Management, 42(1), 3‒21. Kuchinke, K.P. (2003). Contingent HRD: Towards a Theory of Variation and Differentiation in Formal Human Resource Development. Human Resource Development Review, 2(3), 294‒309. Laurent, A. (2006). The Cross-Cultural Puzzle of International Human Resource Management. Human Resource Management, 25(1), 91‒102. Lavelle, J. (2006). It’s All about Context and Implementation. Some Thoughts Prompted by: Unlocking the Human Potential for Public Sector Performance – The United Nations World Public Sector Report 2005. Public Personnel Management, 35(3), 217‒238. Leung, K. and Morris, M.W. (2014). Values, Schemas, and Norms in the Culture–Behavior Nexus: A Situated Dynamics Framework. Journal of International Business Studies, 46, 1028‒1050. Leung, K., Bhagat, R.S., Buchan, N.P., Erez, M. and Gibson, C.B. (2005). Culture and International Business: Recent Advances and Their Implications for Future Research. Journal of International Business Studies, 36(4) 357‒378. Luiz, J.M. (2015). The Impact of Ethno-Linguistic Fractionalisation on Cultural Measures: Dynamics, Endogeneity and Modernisation. Journal of International Business Studies, 46, 1080‒1098. Luthans, F. and Doh, J.P. (2009). International Management: Culture, Strategy and Behaviour (8th edition). New York: McGraw-Hill Irwin. Madsen, P. and Larsen, H.H. (1998). Training and Development in the Danish Context: Challenging Education? Journal of European Industrial Training, 22(4‒5), 158‒170. Marquardt, M. and Berger N.O. (2003). The Future: Globalisation and New Roles for HRD. Advances in Human Resources, 5(3), 283‒295. Marquardt, M.J. and Engel, D.W. (1993). Global Human Resource Development. New Jersey: Prentice Hall. McKenna, S. (1998). Cross-Cultural Attitudes towards Leadership Dimensions. Leadership and Organisation Development Journal, 19(2), 102‒112. McLean, G.N. (1996). Action Research in OD: RIP? Human Resource Development Quarterly, 7(1), 1‒3. McLean, G.N. and McLean, L. (2001). If We Can’t Define HRD in One Country, How Can We Define it in an International Context? Human Resource Development International, 4(3), 313‒326. McSweeney, B. (2002). Hofstede’s Model for National Cultural Differences and Their Consequences: A Triumph of Faith – A Failure of Analysis. Human Relations, 55, 89‒117. Meredith, R. (2008). The Elephant and the Dragon. The Rise of India and China and What It Means for All of Us. New York: W.W. Norton Company. Metcalfe, B.D. and Rees, C.J. (2005). Theorising Advances in International Human Resource Development. Human Resource Development International, 12, 117‒133. Nadler, D.A. and Tushman, M.L. (1997). Competing by Design: The Power of Organisational Architecture. New York: Oxford University Press. Ndoye, A. (2003). Experiential Learning, Self-Beliefs, and Adult Performance in Senegal. International Journal of Lifelong Education, 22(4), 353‒366. Paprock, K. (2003). A Review of HRD Research in East Asia. Unpublished Paper. Parnell, J.A. and Hatem, T. (1999). Cultural Antecedents of Behavioural Differences between American and Egyptian Managers. Journal of Management Studies, 36(3), 399‒418. Peretz, H. and Rosenblatt, Z. (2006). The Role of National Values in Organisational Training: A Comparative Study in 16 Countries. In Weaver M. (ed.), Proceedings of the Sixty-fifth Annual Meeting of the Academy of Management, ISSN 1543-8643. Peretz, H. and Rosenblatt, Z. (2011). The Role of Societal Cultural Practices in Organisational Investment in Training: a Comparative Study in 21 Countries. Journal of Cross-Cultural Psychology, 1‒15. Online: doi:10.1177/0022022111406786.

GARAVAN 9781781954171 PRINT.indd 126

22/09/2017 16:31

IHRD: national cultural and cross-cultural perspectives  ­ 127 Peterson, L.A. (1997). International HRD: What We Know and Don’t Know. Human Resource Development Quarterly, 8(1), 63‒79. Rao, P. (2013). The Role of National Culture on ‘Best’ Practices in India: A Multiple Case Study Approach. Journal of Indian Business Research, 5(2), 122‒143. Rosenzweig, P.M. and Nohria, N. (1994). Influence on HRM Practices in Multinational Corporations. Journal of International Business Studies, 25(2), 229‒251. Ruona, W.E.A. (2000). Should We Define the Profession of HRD? Views of Leading Scholar’s. In Kuckinke, K.P. (ed.), Proceedings of the Annual AHRD Conference (pp.188‒198). Raleigh, Durham, NC: AHRD. Schwartz, S.H. (1990). Individualism–Collectivism: Critique and Proposed Refinement. Journal of Cross-Cultural Psychology, 21, 139‒157. Schwartz, S.H. (1994) Are There Universal Aspects in the Content and Structure of Values? Journal of Social Issues, 50, 19‒45. Sillince, J.A.A. (2005). A Contingency Theory of Rhetorical Congruence. Academy Management Review, 30(3), 608‒621. Skule, S., Stuart, M. and Nyen, T. (2002). International Briefing 2: Training and Development in Norway. International Journal of Training and Development, 6(4), 263‒276. Smith, P.B. (2001). Cross-Cultural Psychology: Where Next? Psychology and Developing Societies, 13(2), 141‒151. Smith, P.B. (2006). When Elephants Fight, the Grass Gets Trampled: The GLOBE and Hofstede Projects. Journal of International Business Studies, 37(6), 915‒921. Sondergaard, M. (1994). Research Note: Hofstede’s Consequences: A Study of Reviews, Citations and Replications. Organisation Studies, 15(3), 447‒456. Sparrow, P.R. (1996). Transitions in the Psychological Contract: Some Evidence from the Banking Sector. Human Resource Management Journal, 6(4), 75‒92. Swanson, R.A. (1995). Performance is the Key. Human Resource Development Quarterly, 6(2), 207‒213. Tanova, C. and Nadiri, H. (2005). Recruitment and Training Policies and Practices: The Case  of Turkey as an EU Candidate. Journal of European Industrial Training, 29(9), 694‒711. Taras, V., Kirkman, B.L. and Steel, P. (2010). Examining the Impact of Culture’s Consequences: A Three-Decade, Multilevel, Meta-Analytic Review of Hofstede’s Cultural Value Dimensions. Journal of Applied Psychology, 95(3), 405‒439. Taras, V., Rowney, J. and Steel, P. (2009). Half a Century of Measuring Culture. Journal of International Management, 15(4), 357‒373. Taras, V., Steel, P. and Kirkman, B.L. (2015). Does Country Equal Culture? Beyond Geography in the Search for Cultural Entities. Working Paper, University of North Carolina at Greensboro. Thomas, D.C., Liao, Y., Aycan, Z., Cerdin, J., Pekerti, A., Ravlin, E.C. et al. (2015). Cultural Intelligence: A Theory-based, Short Form Measure. Journal of International Business Studies, 46, 1099‒1118. Thornhill, A.R. (1993). Management Training across Cultures: The Challenges for Trainers. Journal of European Industrial Training, 17(10), 423‒451. Tomé, E. (2011). Human Resource Development in the Knowledge-based and Services Driven Economy: An Introduction. Journal of European Industrial Training, 35(6), 524‒539. Tregaskis, O. and Dany, F. (1996). A Comparison of HRD in France and the UK. Journal of European Industrial Training, 20(1), 20‒30. Triandis, H.C. (1994). Culture and Social Behaviour. New York: McGraw-Hill. Trompenaars, F. (1993). Riding the Waves of Culture. London: The Economist Books. Trompenaars, F. and Hampden-Turner, C. (1998). Riding the Waves of Culture: Understanding Cultural Diversity in Global Business. New York: McGraw-Hill. Tsang, E.W.K. (1994). Human Resource Management Problems in Sino-Foreign Joint Ventures. h, 15(9), 4‒22. Vainman, V. and Brewster, C. (2015). How far do cultural differences explain the ­differences

GARAVAN 9781781954171 PRINT.indd 127

22/09/2017 16:31

128  Handbook of international human resource development between nations? Implications for HRM. International Journal of Human Resource Management, online: doi:10.1080/09585192.2014.937969. Venaik, S. and Midgley, D. (2015). Mindscapes across Landscapes: Archetypes of Transnational and Subnational Culture. Journal of International Business Studies, 46, 1051‒1079. Wang, X. and McLean, G.N. (2007). The Dilemma of Defining International Human Resource Development. Human Resource Development Review, 6(1), 96‒108. Weinberger, L.A. (1998). Commonly Held Theories of Human Resource Development. Human Resource Management International, 1(1), 75‒93. Wellins, R. and Rioux, S. (2000). The Growing Pain of Globalising HR. Training & Development, 54(5), 79‒85. Wilkins, S. (2001). International Briefing 9: Training and Development in the United Arab Emirates. International Journal of Training and Development, 5(2), 153‒165. Winkler, R. (2014). Training and Knowledge Transfer at the Interface of Cultures. Management, 18(1), 227‒240. Wong, C.S., Hui, C., Wong, Y.T. and Law, K.S. (2001). The Significant Role of Chinese Employees. Organisational Commitment: Implications for Managing Employees in Chinese Societies. Journal of World Business, 36(3), 326‒340. Wright, P. and Snell, S.A. (1998). Toward a Unifying Framework for Exploring Fit and Flexibility in Strategic Human Resource Management. The Academy of Management Review, 23(4), 756‒772. Wright, P., Szeto, W.F. and Cheng, L.T.W. (2002). Guanxi and Professional Conduct in China: A Management Development Perspective. Human Resource Management, 13(1), 156‒182. Yadapadithaya, P.S. and Stewart, J. (2003). Corporate Training and Development Policies and Practices: A Cross-National Study of India and Britain. International Journal of Training and Development, 7(2), 108‒123.

GARAVAN 9781781954171 PRINT.indd 128

22/09/2017 16:31

6. IHRD: international perspectives on competence and competencies Jonathan Winterton

INTRODUCTION This chapter discussed the role of competence and competency within international human resource development (IHRD). Competence-based approaches came to prominence in education and training policy 20 years ago, mainly as a result of efforts to improve the ‘employability’ of young people by ensuring their development was aligned to labour market needs. However, the interpretation of competence conceptually and its implementation operationally has differed substantially between vocational education and training (VET) and higher education (HE) as well as between countries with very different training systems and labour market regimes. Tensions between the worlds of education and work, between school-based and workplace-focused training systems, and between regulated and liberal labour markets, are apparent in the different ways that competence is interpreted and operationalised in these diverse contexts. Moreover, whatever nuanced differences might be intended or assumed between competence and competency, in practice these terms are now indistinguishable and often used interchangeably with skill. After defining some of the terms, an historical overview explains why and how competence and competency have become central concepts in education and training policy, elaborating further why the concepts are important for IHRD. Key theoretical debates around competence and competency are explored exposing further the terminological and conceptual confusion that is still all too apparent both in the literature and in policy documents. The different ways in which competence is interpreted around the globe are not accidental but reflect fundamental differences in approaches to HRD. These contextual differences and different interpretations of competence represent a major challenge for IHRD, yet at the same time the adoption of competence-based approaches is also an opportunity for creating greater comparability and transparency in qualifications, and thereby enhancing labour mobility. Some of the implications of this complexity for IHRD research and practice are discussed before a summary concluding section. 129

GARAVAN 9781781954171 PRINT.indd 129

22/09/2017 16:31

130  Handbook of international human resource development

DEFINING COMPETENCE AND COMPETENCY While competence has become pervasive in international policy discourse, theoretically it remains an elusive ‘fuzzy concept’ lacking any universally accepted definition (van der Klink and Boon, 2003). To explain the terminological confusion it is useful to retrace the origins of competence-based approaches to education and training and the adoption in managerial discourses, particularly, but not exclusively in relation to HRM and HRD. Mulder (2011, p. 1) has argued that the concept of competence has antecedents in the ancient world, appearing in the Code of Hammurabi, but this chapter will limit discussion to the use of competence in the context of IHRD. Harvard psychologist Robert White (1959) was one of the first to use the term competence in a management context, defining it in terms of personality characteristics associated with superior performance. Using these psycho-social characteristics as an alternative to intelligence tests in recruitment, White’s colleague David McClelland (1973) developed measures of competence (competences in the plural), but later used the term ‘competency’ (competencies in the plural) without changing the definition. Spencer and Spencer (1993), who worked with McClelland, continued to use the term competence to describe psycho-social characteristics associated with superior performance. There have been some valiant efforts to distinguish competency and competence, typically by treating the former as ‘input’ characteristics (or the potential to develop competence) and the later as ‘output’ characteristics (or the demonstrated ability to perform in a competent manner) (see, for example, Boak, 1991; Tate, 1995; Winterton and Winterton, 1999; Woodruffe, 1991). However, usage is too inconsistent and confused for the distinction to be sustainable (Mangham, 1986; Mansfield, 2004; Weinert, 2001). Indeed, ‘competency’ did not originally exist in UK English: the 1933 Oxford English Dictionary only listed competence. In this chapter, the term competence (competences in plural) is used in a holistic sense to include the three fundamental dimensions proposed as a competence typology for the European Credit Transfer System for Vocational Education and Training (ECVET): cognitive competence (knowledge); functional competence (skills); and social competence (attitudes and behaviours). It is recommended that the term competence without a qualifying adjective should only be used in this holistic sense and that an adjective (cognitive, functional or social) should be added when considering just one of the building blocks (Winterton, Le Deist and Stringfellow, 2006). These three dimensions equate to the familiar KSA (knowledge, skills and attitudes) of the training world, although it can

GARAVAN 9781781954171 PRINT.indd 130

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­131 be argued that it is behaviours, rather than underpinning attitudes, that training aims to instil in employees. Meta-competences (such as learning to learn, coping with uncertainty) are seen both as a means to developing competence and an outcome of doing so. In addition to these fundamental conceptual constructs, in a particular context it is possible to identify basic competences, core competences, key competences, transversal competences and so on, but these are specific competence sets that encompass all three dimensions. Basic competences (such as literacy and numeracy) are invariably transversal (applicable to a variety of occupations and sectors) while key competences (essential for an occupation) and core competences (usually defined as those essential for the enterprise) are by definition highly context specific. Indeed, the defining characteristic of competence as a theoretical construct is that it can (only) be demonstrated by an individual in a work context (or a simulated work environment). Competency (competencies in plural), if a logical theoretical distinction can be made based on the psycho-social approach pioneered by White (1959) and McClelland (1973), can be measured outside the work context since it relates to individual personality and psycho-social characteristics. These characteristics have been associated with individuals who have in the past performed particularly well in a particular job role, so the assumption is that others with a similar psychological profile also have the potential for high performance. If used in this sense competency is about individual potential and competence is about observable work behaviour. The extent to which competency correlates with competence depends upon contextual factors just as competence (or ability) only translates into performance in the presence of both motivation and opportunity (Appelbaum et al., 2000). Interestingly exactly this distinction, between input and output competences is reflected in two words in Lithuanian that are both translated as competence in English: kompetencija and kompetetingumas (Laužakas, Tūtlys and Spūdytė, 2009). Skill has already been distinguished above as the functional dimension of competence: the ability to perform specific work tasks. In labour market discourse, however, skill is most often used as a generic term that has the same sense as the holistic definition of competence offered above. The term ‘skilled worker’ does not simply imply someone who can adequately perform the requisite functional tasks, but who also has the necessary underpinning knowledge and has been inducted in appropriate work behaviours. A classic apprenticeship involves theoretical instruction to raise cognitive competences, practical instruction in operations and work methods to develop functional competences and socialisation in appropriate behaviours befitting a member of the craft. In labour economics the label ‘skilled’ also has connotations for remuneration, while

GARAVAN 9781781954171 PRINT.indd 131

22/09/2017 16:31

132  Handbook of international human resource development sociology reminds us that such labels are socially constructed. The seminal work on skill by Cox (1934, p. 1) focused on ‘manual’ activities, typically assembly work in the engineering industry, and the first paragraph noted that the operations “differed considerably in the kind and degree of skill required for their performance . . . [and] the relative amounts of ‘mind’ and ‘muscle’ they seemed to require”. The most comprehensive treatment of skill acquisition and performance (Proctor and Dutta, 1995) similarly deals with perceptual and motor skills, problem solving skills and the development of expertise. Skill, in brief, is rarely equated in an atomistic sense with manual qualities such as dexterity and the cognitive dimension is ever present. Finally, in a semantic sense, ‘skill’ implies a level of expertise, whereas competence suggests mere adequacy, while ‘unskilled’ is a far less pejorative term than ‘incompetent’.

THE EVOLUTION OF COMPETENCE AND COMPETENCY DEVELOPMENT IN IHRD Debates about competence and competency in IHRD can be traced back to the 1990s. At that time, a global consensus emerged on the importance of developing competence-based approaches to education and training, reflected in policy documents of international organisations like the International Labour Organization (ILO) and the Organisation for Economic Co-operation and Development (OECD), as well as suprastate regional bodies like the European Union (EU) and the Asia-Pacific Economic Cooperation forum (APEC). HRD and IHRD, the discipline within which much of the competence and competency debates are located, has become a central concern of international and supra-national organ­ isations as well as governments of nation states in the past few decades (Winterton and Haworth, 2013). In 1997 the ILO published a report demonstrating the diversity of approaches to competence-based training around the world and proposing the need to develop global approaches (ILO, 1997). Simultaneously, the OECD launched a Programme for International Student Assessment (PISA) and initiated the Definition and Selection of Competencies (DeSeCo) project concerned with competencebased education. The OECD report concerned with theoretical and conceptual foundations of the competency debate focused on the world of education and adopted an American perspective (OECD, 1999). The ILO approach, by contrast, was more concerned with the world of work and had a more international approach to competence, accommodating European and Asian models more comfortably. These differences are important, not least because both international bodies have considerable

GARAVAN 9781781954171 PRINT.indd 132

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­133 influence on policies developed by regional organisations like the EU and APEC (Gonczi, 2006; Haworth and Winterton, 2012). Moreover, these differences reflect two tensions that recur in discussions of competence: between formal education and workplace learning; and between national approaches and universal constructs. Notwithstanding the different approaches, what explains this policy consensus on competence at this particular time? It appears that a conjuncture of several factors drove the adoption of competence-based approaches to education and training. First, technological innovation and demographic changes increased the importance of adaptive training and work-based learning (Winterton and Winterton, 1997). Second, there was a widespread recognition that traditional supply-driven education systems were inadequately aligned with labour market needs and should be replaced with demand-driven models (Mansfield, 2004). Third, the development of lifelong learning policies put a new emphasis on informal and non-formal experiential learning, which can best be accredited through assessment of competence at work (Bjørnåvold, 2000). Fourth, such recognition of competence, irrespective of the route of acquisition, offered opportunities for those having few opportunities for formal education and training (Rainbird, 2000). Fifth, the adoption of competencebased approaches facilitated permeability between vocational training and higher education (Winterton, 2005). Competence-based approaches to education and training have particular significance for IHRD and for labour mobility because they introduce the principle of comparability based on learning outcomes rather than curriculum content or other input measures. In Higher Education (HE), the credit transfer system (ECTS) developed under the Bologna Declaration of 1999 was originally based on principles of notional workload but the Berlin Communiqué of September 2003 introduced the idea of comparability of learning outcomes with the purpose of improving the labour market relevance of HE. Vocational education and training (VET) had traditionally used a competence-based approach so the associated credit transfer system (ECVET) was designed on this basis from the outset. The Berlin Communiqué also demanded comparability and compatibility between the HE and VET systems because this would increase permeability between the parallel systems and facilitate the development of an integrated European Qualifications Framework (EQF) including initial education and postcompulsory education, whether VET or HE (Winterton, 2005). HE institutions were traditionally critical of competence-based approaches, arguing that these are reductionist in nature, but the learning outcomes approach, which amounts to the same thing, has been accepted in the interests of improving graduate employability (Mulder et al., 2009).

GARAVAN 9781781954171 PRINT.indd 133

22/09/2017 16:31

134  Handbook of international human resource development Improving the labour market relevance of education and training, both VET and HE, is not made any easier by the difficulty employers have in articulating the competences they need now and in the future. In practice employers often use ‘skills’ as a catch-all term covering not only what people can do but also psychological characteristics, social behaviours and attitudes, which could be properly included under competence in the holistic sense. Indeed skill and competence are often used interchangeably and these dimensions are further conflated in employer discourses with motivation and commitment, which are clearly distinct theoretical constructs. Stasz (1997) famously questioned whether employers need the skills they want, while work on the Skills Foresight exercise for the UK garment industry demonstrated equally that employers do not always want the skills they need: in this study, employers often articulated needs that were inconsistent with the business strategies they elaborated (Winterton and Winterton, 2002). Employers are not the only ones contributing to the confusion over skills and competence. As Attewell (1990) noted, theoretical ambiguities in sociological conceptions of skill arise from the existence of four distinct approaches to skill (positivist, ethnomethodological, Weberian and Marxist). Positivist approaches emphasise the technical content of work and the time to acquire skills as reflecting something concrete that can be measured while the most existentialist of the ethnomethodological schools view skill as nothing more than a social construct. A more measured approach would acknowledge that there is a concrete basis of skill (as anyone will confirm who has attempted to plaster a wall) but that there are inevitable processes of social construction that act as a veneer in the form of skill labels. The social construction includes institutions of labour relations so that organised workers are more likely to be acknowledged as ‘skilled’; the processes are also infamously confounded by gender issues so that ‘women’s work’ has historically been undervalued and deemed ‘unskilled’ (Cockburn, 1983). These issues reappear in debates over conceptual approaches to competence to which can be added a polarisation between the detractors of competence and the enthusiasts who see competence-based approaches as the panacea for reforming education and training. The key debates explored in the next section discuss this polarisation and fundamental differences rooted in national systems of education and training.

GARAVAN 9781781954171 PRINT.indd 134

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­135

REGIONAL INFLUENCES AND COUNTRY DIFFERENCES IN CONCEPTUALISATION OF COMPETENCE AND COMPETENCY DEVELOPMENT As noted earlier, the work of White (1959) and his disciple McClelland (1973) marked a watershed in competence theory but this approach has little connection with the modern competence movement and European competence models that developed in the 1980s. McClelland was one of the founders of the consulting group Hay McBer and that company exported the American competence model into Europe, but home-grown European competence models share a common point of departure in the characteristics of job tasks rather than personal psycho-social attributes. The three dominant competence models are represented by the cases of the UK, France and Germany, which introduced competence-based approaches to VET from the 1980s onwards. Most other EU member states have adopted models that are close to one or other of these three (Le Deist and Winterton, 2005), albeit with more or less nuanced differences (Winterton, 2009). The UK VET system was reformed in the 1980s with the adoption of competence-based qualifications based on occupational standards of competence, grounded in functional analysis of occupations in a variety of contexts (Mansfield and Mitchell, 1996). The emphasis in the UK competence model was on functional competence and the ability to demonstrate performance to the standards required of employment in a work context (Knasel and Meed, 1994). The definition of occupational competence provided by the Manpower Services Commission (MSC, 1986) and adopted by Investors in People (IiP, 1995, p. 41) was “the ability to perform activities in the jobs within an occupation, to the standards expected in employment”. However, the definition also included ‘mastery of skills and understanding’ and ‘aspects of personal effectiveness’. As Mansfield and Mitchell (1996, p. 46) note, this definition “appears to include a mix of models: work expectations, input measures (knowledge and skills) and psychological attributes”. As soon as NVQs (National Vocational Qualifications in England and Wales, Scottish Vocational Qualifications in Scotland) were introduced, they came under attack from educationalists. It has been variously claimed that competence-based approaches are reductionist (Hyland, 1993; 1997), lack underpinning knowledge (Grugulis, 2003) and neglect the more holistic development of individuals (Young, 2007). The NVQ dichotomy of ‘competent/not yet competent’ was also seen to pay insufficient attention to progression beyond basic occupational competence (Eraut, 1998). In France a competence movement also developed in the 1980s and was

GARAVAN 9781781954171 PRINT.indd 135

22/09/2017 16:31

136  Handbook of international human resource development led by enterprises seeking to develop employees in line with future organ­ isational needs (Cannac and CEGOS, 1985). The state introduced an accreditation system (Validation des Aquis Professionnelles) for employees who acquired skills experientially (Paradeise, 1987) and in 1991 introduced a right for individuals to have a skills audit (Bilan de Compétences) undertaken by independent organisations to provide a basis for personal development (Joras, 2002). The HRM profession developed the technique GPEC (Gestion Prévisionnelle des Emplois et des Compétences GPEC) for managing and forecasting jobs and skills (Raoult, 1991), which was the foundation for ETED (Emploi Type Etudié dans sa Dynamique) a more dynamic approach to functional analysis of emerging jobs (Mandon and Liaroutzos, 1994). The national employment agency (Agence National de l’Emploi) adopted competence descriptors when it revised the framework of occupations in 1993 (Le Boterf, 1994) thereby supporting the move to a logic of competence in place of the dominant logic of qualification (Oiry and d’Iribarne, 2001). In 2002 the employers’ association MEDEF (Mouvement des Entreprises de France) promoted the use of competence within enterprises through the initiative Objectif compétences (MEDEF, 2002). Le Deist (2009) characterises the French competence model as a triptyque comprising knowledge (savoir or compétences théoriques), skills or functional competences (savoir-faire or compétences pratiques) and social and behavioural competences (savoir-être or compétences sociales). In Germany, educational reforms in the 1990s led to the adoption of vocational action competence (Handlungskompetenz) broadly understood as ‘capabilities to act’ (Gehmlich, 2009) or berufliche Handlungsfähigkeit, the ability or capacity of the individual to act in the labour process (Brockmann, Clarke and Winch, 2009). Competences are defined in relation to specific domain competence (Fachkompetenz), work process know­ ledge (Methodenkompetenz), personal competence (Personalkompetenz) and social competence (Sozialekompetenz). All of these are construed within a defined Beruf, which constitutes a precisely defined occupation and embodies wider notions of occupational identity and culture. Attempts to simplify the occupational structure and its associated qualifications framework were resisted because of fears that the adoption of modular approaches to VET and the pursuit of flexibility would compromise the integrity of Beruf and the associated holistic notion of competence. Whilst most EU countries have adopted positivist structural approaches to competence that resemble the UK, French or German models, interpretative processual approaches have also played a role in the development of competence. Simplified descriptions of competence inevitably fail to reflect the complexity of competence in work performance (Norris, 1991) and interpretative approaches view competence as governed by

GARAVAN 9781781954171 PRINT.indd 136

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­137 the context in which it is applied. Dreyfus and Dreyfus (1986) pioneered interpretative studies with pilots demonstrating how attributes acquire context-dependency through individuals’ experience of work. As Fischer et al. (1993, p. 113) argue, “people do not have competences independent of context” or as Sandberg (2000, p. 50) puts it, “worker and work form one entity through lived experience of work”. One of the advantages of the interpretative approach is in acknowledging workers’ tacit knowledge and skills (Polanyi, 1967), which can be overlooked if competence is treated as context-free since the way people work in practice seldom accords with the formal job description. Even without the complication of interpretative approaches, it is clear that notions of competence are very much context-specific and that meanings vary enormously with context. Different countries have different approaches that are explicable in terms of differences in training regimes, work cultures and histories (Brockmann, Clarke and Winch, 2009; Winterton, 2012) but sector differences are also apparent, which limit the potential for inter-sectoral mobility (Markowitsch and Plaimauer, 2009). Moreover, as evidenced by the confusion surrounding competence in the EQF, there are competing hierarchies each offering a different interpretation: an educational (or systemic knowledge) hierarchy; an occupational (or competence) hierarchy; and a skills (or individual attributes) hierarchy (Markowitsch and Loumi-Messerer, 2008, p. 53). A dramatic example of the different interpretations of competence in the worlds of work and education is provided by the case of Lithuania, referred to earlier, where kompetencija, referring to the certified knowledge and skills that a person possesses is most used by educationalists and kompetetingumas, referring to the ability to mobilise such knowledge and skills in a work context is most used by employers (Laužakas, Tūtlys and Spūdytė, 2009).

COMPETENCE AND COMPETENCY DEVELOPMENT: DEVELOPING A EUROPEAN FRAMEWORK Clearly differences in competence models present a challenge for IHRD but at the same time the adoption of competence-based approaches offers the opportunity to establish international and cross-sector comparability and transparency in qualifications frameworks. One of the driving forces for developing ECVET and the EQF was the need to increase labour mobility to reduce skills shortages and in principle, the EQF offers just such a translation tool for qualifications from different countries that can facilitate the integration of skilled migrants (Le Deist and Tūtlys, 2012).

GARAVAN 9781781954171 PRINT.indd 137

22/09/2017 16:31

138  Handbook of international human resource development Competence-based approaches also have the potential to establish comparability between the worlds of work and education, which can encourage permeability between vocational and higher education. The EQF provides a framework for international sector or occupational bodies to establish a system for the mutual recognition of qualifications (Brockman, Clarke and Winch, 2009), creating what Coles and Oates (2005) described as Zones of Mutual Trust. European-level qualifications had already been developed in some areas by projects in the Leonardo da Vinci Programme and more recently through ECVET and EQF pilots and testing. Member states were required to map their National Qualifications Frameworks (NQFs) to the EQF by 2010 and several new member states did so ahead of schedule (Hozjan, 2008; Tūtlys and Winterton, 2006). For countries like Germany with training regimes that are rooted in notions of occupational identity (Beruf), the mapping posed a problem (Gehmlich, 2009), as it did also in France where qualifications play a determining role in accessing the labour market (Le Deist, 2009). In practice, differences in underpinning concepts of competence limit the extent to which translation is possible. Bohlinger (2008) controversially suggests that the ECVET and EQF conception of competence is aligned with Anglophone countries because it is based on outputs, whereas competence in the German speaking countries is focused on inputs, yet German qualifications are being aligned with the EQF on the basis of outcomes. In both a country and a sectoral sense, context is all important, so best fit ‘approximation’ had replaced best practice ‘harmonisation’ ambitions in most EU policy even before the economic and financial crisis that started in 2007. Various EU instruments have been developed to support the alignment of different HRD systems and their associated competence models but far from resolving the difficulties these have introduced further conceptual confusion and discrepancies (Winterton, 2011). European agencies have also published misleading comments suggesting that the zones of mutual trust in the reference levels document produced by Coles and Oates (2005) was somehow a conceptual alternative to the competence typology (Bohlinger, 2008, p. 101), whereas they explicitly incorporated the typology in their explanation of how such trust is developed. The reference levels document defined the vertical axis and our typology the horizontal axis of ECVET, while the third component dealt with the transfer system (Le Mouillour, 2005). The European Skills, Competences and Occupations taxonomy (ESCO) had the aim of linking the EQF to occupational groups as defined by the ILO International Standard Classification of Occupations (ISCO), yet instead of using the EQF terminology of ‘knowledge, skills and competences’, it introduced further confusion with ‘skills, competencies and capabilities’

GARAVAN 9781781954171 PRINT.indd 138

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­139 (EC, 2010a, p. 1). In suggesting that “skills, competencies and capabilities complement formal qualification-based approaches” it also neglected the role of qualifications as the formal certification of competence. A stakeholders’ conference in Brussels on 17‒18 March 2010 resolved some of these anomalies and focused on the objective of creating “a common language between education/training and the world of work” (EC, 2010b, p. 1). A subsequent description of work in progress on ESCO referred to ‘skills and competences’ as the link between on the one side occupations and the labour market and on the other side qualifications and education/training (EC, 2010b). Expanding the scope to include qualifications, ESCO henceforth became the European taxonomy of Skills, Competences, Qualifications and Occupations. The development of ESCQO has subsequently drawn on classifications already in use through the EU job mobility portal, EURES, and research undertaken by the project DISCO. The value of achieving consensus over a European competence framework has been widely recognised (Brockmann, Clarke and Winch, 2009; Garavan and McGuire, 2001) yet despite progress made with initiatives such as ECVET, the EQF and ESCQO, “a convincing transparency of vocational competences has yet to be developed” (Markowitsch et al., 2008, p. 171). An overarching common framework of competences is, however, essential to facilitate transnational and sectoral comparisons as well as to promote permeability between VET and HE. Unless and until such a framework is developed, dialogue between the worlds of education and work will be impeded as will the mobility of labour between countries and sectors. In the absence of a European competence framework that can accommodate the very different conceptual models in EU Member States, transnational corporations are obliged to develop enterprise level competence frameworks to facilitate mobility of employees. Such frameworks could inform sector EU policy, yet the more likely outcome is a proliferation of independent competence frameworks that serve the needs of individual employers. Enterprises like Airbus that are making progress in this direction are to be applauded, but this is unlikely to resolve the more embedded challenges posed by country and sector differences or the contrasting perspectives of education and work.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE The above analysis has several implications for IHRD research, which can be grouped into substantive and procedural matters.

GARAVAN 9781781954171 PRINT.indd 139

22/09/2017 16:31

140  Handbook of international human resource development In substantive terms, there is clearly a need for further comparative research on competence models to explore areas of common ground for alignment. This work was begun by the EUCLID network (see Winterton, 2009) and a further contribution will be made by an edited collection on competence currently under development (Mulder, 2016). A systematic analysis of existing approaches to competence in all countries is a necessary pre-requisite for any attempt to align the different models at the EU or global level. Any common understanding of competence must be theoretically grounded and needs to reconcile Bloom’s taxonomy, Jacques’s time-span of discretion and the Dreyfus ladder of professional expertise. The three principal competence dimensions proposed for ECVET were reasonably consistent with Bloom’s taxonomy of learning (Winterton, Le Deist and Stringfellow, 2006). Jacques’s categorisation of levels of jobs in terms of responsibility influenced the determination of reference levels for ECVET (Coles and Oates, 2005). Markowitsch et al. (2008) proposed new groups of ‘competencies’ based on work-related tasks and contexts, mapping these to the Dreyfus ladder of professional expertise. These three approaches are overlapping and do not correspond neatly with the three hierarchies of the EQF identified by Markowitsch and Loumi-Messerer (2008), so substantial further research is necessary to establish a sound theoretical basis. In procedural terms, research is also necessary into the processes associated with alignment and accommodation. Analogies can perhaps be drawn with transfer of innovation and policy learning, where best fit approaches are more plausible than best practice models. Transfer is easier between countries that share common characteristics such as similar forms of labour market regulation, training regimes and conceptual frameworks for skills and qualifications. Esping-Anderson (1990) contrasted three approaches to welfare capitalism: Liberal, Conservative and Social Democratic and the relevance of welfare regimes to labour market issues is amply elaborated by Korpi’s (2006, p. 167) note that under the post-war logic of industrialism, “welfare states were viewed as functional complements to industrial production requiring a labour force differentiated in terms of occupations and skills”. Amable, Barré and Boyer (1997) grouped countries according to relations between systems of macroeconomic regulation and enterprise organisation. Hall and Soskice (2001) used a similar approach in defining Varieties of Capitalism and contrasted the coordinated regimes of continental Europe and the Nordic countries with the liberal market regimes of the UK and Ireland. More nuanced clusters were proposed by Amable (2003), who maintained the distinction of the liberal market economies but contrasted three different forms of coordinated market regimes: the social democratic (Nordic) states; mainstream con-

GARAVAN 9781781954171 PRINT.indd 140

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­141 tinental Europe (such as Germany and France); and southern European states (such as Spain and Greece). Since EU enlargement in 2004, a fifth ‘transitional’ category has been proposed for central European former soviet economies (Amable, 2005; Goergen, Brewster and Wood, 2009). It is clear that the institutions, sectoral and national, which shape processes of HRD also heavily influence the nature of the competence models that emerge as dominant within that particular context. As Lane (1989, p. 62) put it: “the nature, quantity and distribution of skill in industry are mainly determined by a country’s system of vocational education and training”. Rainbird (1993, p. 185) noted that different national training systems are “embedded in broader systems of social relations with which they interact”, reflecting economic, social, political and cultural conditions and traditions. Various typologies of skill formation have been proposed that cluster countries according to their predominant training regimes. Furth (1985) distinguished three families of VET systems: the schooling system, where most provision is integrated into formal education, typified by the USA and Japan; the dual system with its emphasis on apprenticeships and workplace learning supported by periods spent in vocational schools, typified by Germany and Switzerland; and the mixed system where more importance is attached to the non-formal sector, as in the UK. Campinos-Dubernet and Grando (1988) identified three models of VET based on similar distinctions. Lundvall (1988; 2002) focused on institutions which shape processes of learning and competence development, identifying distinct ‘national systems of innovation’ according to the extent to which there are opportunities for learning at work. Such an approach is helpful in the present analysis because it emphasises the importance of considering the way skills are utilised and developed at work rather than relying on proxies like qualifications (Lundvall and Borras, 1999). Within Europe, it is common to distinguish the ‘schooling model’ where VET provision may be integrated within general education or delivered through separate VET institutions, the consensual ‘dual model’ where the emphasis is on apprenticeship, and voluntarist, market-led or enterpriseled models, which may be associated with high- or low-skills strategies. With some simplification, two key dimensions of VET systems allow an adequate typology: the focus of skill formation (workplace or school) and the regulation of the VET system (state or market). Four countries illustrate the differences in these terms: France, Germany, Italy and the UK. In terms of its focus, VET is mostly industry-led and centred on the workplace in the UK and Germany, whereas training is educationled and centred on vocational training schools in Italy and France. The German dual system entails instruction in VET schools in parallel with

GARAVAN 9781781954171 PRINT.indd 141

22/09/2017 16:31

142  Handbook of international human resource development ­ ork-based training, but like the UK, the curricula focus on workplace w needs. Whereas VET is regulated by the state in Germany and France, in the UK and Italy arrangements are market-led, with responsibility for training largely devolved to employers (Winterton, 2000). Combining different training regimes with different approaches to labour market regulation creates a number of distinct labour market/ training regime combinations: social democratic (Nordic) states have state-regulated school-based systems with VET integrated into normal schools; continental European labour markets based on concerted regulation all have state-regulated training regimes but within this group two sub-groups may be discerned according to whether training provision is school-based (as in Belgium and France) or work-based under the dual system (as in Germany and Austria); liberal market economies (Ireland, UK) have market led, work-based training regimes; Southern European states have state-regulated school-based systems, although the degree of regulation varies substantially; and transitional economies have similar labour market regulation issues but there is some diversity with respect to training regimes, ranging from the dual system (Slovenia) to stateregulated school-based systems (such as Lithuania). Different conceptual approaches to competence, skills and qualifications across Europe correspond closely with the above country clusters, reinforcing the argument for using these in any theoretically-driven alignment of competence models. There are many implications for IHRD practice of the above analysis of competence and its role in IHRD but perhaps two areas are most obvious priorities for attention: establishing arrangements for workplace learning that are most conducive to developing competence and targeting competence development that will give the most sustainable returns on performance. Clearly the two are related but can be treated as separate sequential events. Like the adoption of competence-based HRD, renewed interest in workplace learning is related to the rapid and profound restructuring that started even before the current economic and financial crises. The changes create demand for learning to maintain the employability of those displaced and adaptive training for those remaining in newly configured work environments (Winterton and Forde, 2013). In such a context there are obviously advantages in developing what Fuller and Unwin (2003) describe as an ‘expansive learning environment’. HRD practitioners will need to provide more opportunities for learning at work (Billett, 2001) and develop mechanisms for maintaining a strategic involvement in promoting learning at work (Felstead et al., 2010). Since forms of work organisation have a major impact on both the need and opportunity for learning

GARAVAN 9781781954171 PRINT.indd 142

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­143 at work, HRD practitioners must equally become involved in job design (Osterman, 2000). Another area of concern for HRD practitioners is making explicit the link between competence and performance by demonstrating sustainable performance improvements that are unambiguously attributable to competence development. White (1959) and McClelland (1973) treated competence as a motivational concept, which causes confusion when seeking to identify how competence contributes to productivity. The AMO framework proposed by Appelbaum et al. (2000) provides a useful starting point by making it clear that motivation and competence (‘ability’ in their term­ inology) are separate constructs that must both be present, along with the ‘opportunity’ to apply them, before performance improvements are likely to be manifest. If HRD practitioners in transnational organisations address these concerns, providing appropriate learning environments to promote competence development and surfacing evidence of the links between competence development and sustainable performance, empirical evidence will become available for testing the links between learning and performance in the workplace. At the same time, theoretical work must be continued to explore the extent to which divergent models of competence are susceptible to alignment. Given the origins of the diversity of competence models, the compromise of ‘best fit’ approximation would appear a more fruitful avenue of investigation than the pursuit of the holy grail of a ‘best practice’ universal competence model.

CONCLUSION Debates about competence and competency within IHRD largely arose from a conjuncture of a specific set of circumstances in the last years of the twentieth century and which had a determining influence on policy for the following two decades primarily in Europe. The extent to which these debates have transferred to other regions, such as North America and Asia, is less clear. The financial and economic crises that unfolded from 2007 did nothing to reduce the urgency to align education and training with the needs of employment, while the ensuing restructuring required existing workers to develop new competences, supporting both adaptability to cope with workplace change and employability in the wider labour market. At the same time, economic downturns are invariably associated with reduced investment in education and training, by nation states, employers and individuals, making it even more difficult to bridge competence gaps and shortages.

GARAVAN 9781781954171 PRINT.indd 143

22/09/2017 16:31

144  Handbook of international human resource development Various European actions designed to establish a common understanding of competence and a rational alignment of qualifications have only partially succeeded because of internal conceptual confusions within the different initiatives. Moreover, underlying differences in training (and labour market) regimes mean that competence is still perceived differently according to country context. Nevertheless, progress was made in harmon­ isation (or ‘approximation’ as the Commission preferred to say post-2004) but whether this had any impact on intra-EU migration of skilled workers has become a moot point as immigration from outside the EU now dominates European political discourse. As the number of immigrants seeking to enter the EU increased, EU Member States began restricting the flow to refugees from war zones and turning back ‘economic migrants’ although exceptions were made for those with high or scarce skills coming from Africa, which could have potentially disastrous consequences for African economies. There has been surprisingly little discussion of the potentially damaging effects of skilled emigration on home economies beyond the EU but this ought to be on the agenda in debates about IHRM. Finally, irrespective of how competence (or competency) is defined, its importance for IHRD is self-evident: HRD is by definition concerned with developing a competent workforce and since competence needs continually change, this also implies increasing emphasis on learning at work and through work. Similarly, because all operations are becoming increasingly global, those opportunities for learning must also become international in nature and involve exposure to different cultures and institutions. Perhaps, by accident rather than design, these needs may be met for the EU by increased immigration, but IHRD also must consider how to rebuild competent workforces in the donor countries or follow the lead of China in promoting expatriation to Africa, since otherwise the disparities between ‘developed’ and ‘developing’ economies are liable to be exacerbated.

REFERENCES Amable, B. (2003), The Diversity of Modern Capitalism, Oxford: Oxford University Press. Amable, B. (2005), Les cinq capitalismes: Diversité des systèmes économiques et sociaux dans la mondialisation, Paris: Seuil. Amable, B., B. Barré and R. Boyer (1997), Les systèmes d’innovation à l’ère de globalisation, Paris: Economica. Appelbaum, E., T. Bailey, P. Berg and A. Kalleberg (2000), Manufacturing Advantage: Why High-Performance Work Systems Pay Off, Ithaca, NY: ILR Press. Attewell, P. (1990), ‘What is skill?’ Work and Occupations, 17 (4), 422‒448. Billett, S. (2001), ‘Learning through work: Workplace affordances and individual engagement’, Journal of Workplace Learning, 13 (5), 209‒214.

GARAVAN 9781781954171 PRINT.indd 144

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­145 Bjørnåvold, J. (2000), Making Learning Visible, Thessaloniki: CEDEFOP. Boak, G. (1991), Developing Managerial Competences: The Management Learning Contract Approach, London: Pitman. Bohlinger, S. (2008), ‘Competences as the core element of the European Qualifications Framework’, European Journal of Vocational Training, 42/43 (3/1), 96‒112. Brockmann, M., L. Clarke and G. Winch (2009), ‘Competence and competency in the EQF  and in European VET systems’, Journal of European Industrial Training, 33 (8/9), 787‒799. Campinos-Dubernet, M. and J-M. Grando (1988), ‘Formation professionnelle ouvrière: trois modèles Européens’, Formation/Emploi, 22, 5‒29. Cannac, Y. and CEGOS (1985), La Bataille des compétences: l’éducation professionnelle permanent au cœur des stratégies de l’entreprise, Paris: Editions Hommes et Techniques. Cockburn, C. (1983), Brothers. Male Dominance and Social Change, London: Pluto Press. Coles, M. and T. Oates (2005), European reference levels for education and training: promoting credit transfer and mutual trust, Cedefop Panorama series 109, Luxembourg: Office for Official Publications of the European Communities, http://www.cedefop.europa.eu/EN/ publications/13065.aspx (accessed 9 May 2017). Cox, J.W. (1934), Manual Skill: Its Organization and Development, Cambridge: Cambridge University Press. Dreyfus, H.L. and S.E. Dreyfus (1986), Mind over Machine: The Power of Human Intuition and Expertise in the Era of the Computer, New York: Free Press. Esping-Anderson, G. (1990), The Three Worlds of Welfare Capitalism, Princeton, NJ: Princeton University Press. European Commission (EC) (2010a), Presentation fiche: ESCO, the forthcoming European Skills, Competencies and Occupations taxonomy, online text, http://ec.europa.eu/social/ BlobServlet?docId54654&langId5en (accessed 9 May 2017). European Commission (EC) (2010b), Overview of ESCO – a European classification of Skills, Competences and Occupations, online text, http://ec.europa.eu/eures/docs/ESCO_ overview_note.pdf (accessed 9 May 2017). Eraut, M. (1998), ‘Concepts of competence’, Journal of Interprofessional Care, 12 (2), 127‒139. Felstead, A., D. Gallie, F. Green and Y. Zhou (2010), ‘Employee involvement, the quality of training and the learning environment: an individual level analysis’, International Journal of Human Resource Management, 21 (10), 1667‒1688. Fischer, K.W., D.H. Bullock, E.J. Rotenberg and P. Raya (1993), ‘The dynamics of competence: How context contributes directly to skill’, in R.H. Wozniak and K.W. Fischer (eds), Development in Context: Acting and Thinking in Specific Environments, Hillsdale, NJ: Erlbaum, pp. 93‒117. Fuller, A. and L. Unwin (2003), ‘Learning as apprentices in the contemporary UK workplace: Creating and managing expansive and restrictive participation’, 16 (4), 407‒426. Furth, D. (1985), Education and Training after Basic Schooling, Paris: Organisation for Economic Co-operation and Development. Garavan, T. and D. McGuire (2001), ‘Competencies and workplace learning: Some reflections on the rhetoric and the reality’, Journal of Workplace Learning, 13 (3/4), 144‒164. Gehmlich, V. (2009), ‘“Kompetenz” and “Beruf” in the context of the proposed German Qualifications Framework for Lifelong Learning’, Journal of European Industrial Training, 33 (8/9), 736‒754. Goergen, M., C. Brewster and G. Wood (2009), ‘Corporate governance and training’, Journal of Industrial Relations, 51 (4), 459‒487. Gonczi, A. (2006), ‘The OECD: its role in the key competencies debate and in the promotion of lifelong learning’, in P. Hager and S. Holland (eds), Graduate Attributes, Learning and Employability, Chicago: Springer, pp. 105‒124. Grugulis, I. (2003), ‘The contribution of National Vocational Qualifications to the growth of skills in the UK’, British Journal of Industrial Relations, 41 (3), 457‒475. Hall, P.A. and D. Soskice (2001), ‘An introduction to varieties of capitalism’, in P.A. Hall

GARAVAN 9781781954171 PRINT.indd 145

22/09/2017 16:31

146  Handbook of international human resource development and D. Soskice (eds), Varieties of Capitalism: The Institutional Foundation of Comparative Advantage, Oxford: Oxford University Press, pp. 1‒70. Haworth, N. and J. Winterton (2012), ‘Regional integration and vocational training strategies: The EU and APEC compared’ in M. Lee (ed.), International Human Resource Development, London: Routledge, pp. 91‒101. Hozjan, D. (2008), ‘European qualifications framework influences on a national framework: The case of Slovenia’, European Journal of Vocational Training, 42/43 (3/1), 143‒155. Hyland, T. (1993), ‘Professional development and competence-based education’, Educational Studies, 19 (1), 123‒132. Hyland, T. (1997), ‘Reconsidering competence’, Journal of Philosophy of Education, 31 (3), 491‒503. IiP (1995), The Investors in People Standard, London: Investors in People UK. ILO (1997), Competence Based Training, Cintefor, Montevideo [for International Labour Office]. Joras, M. (2002), Le Bilan de Compétences, Paris: PUF [collection Que sais-je? No. 2979] (3rd edition). Knasel, E. and J. Meed (1994), Becoming Competent: Effective Learning for Occupational Competence, Sheffield: Employment Department. Korpi, W. (2006), ‘Power resources and employer-centred approaches in explanations of welfare states and varieties of capitalism. Protagonists, consenters and antagonists’, World Politics, 58 (2), 167‒206. Lane, C. (1989), Management and Labour in Europe: The Industrial Enterprise in Germany, Britain and France, Aldershot, UK and Brookfield, VT, USA: Edward Elgar Publishing. Laužakas, R., V. Tūtlys and I. Spūdytė (2009), ‘Evolution of competence concept in Lithuania: From VET reform to development of National Qualifications System’, Journal of European Industrial Training, 33 (8/9), 800‒816. Le Boterf, G. (1994), De la compétence: Essai sur un attracteur étrange, Paris: Editions d’Organisation. Le Deist, F. (2009), ‘Compétence: concepts and practice in France’, Journal of European Industrial Training, 33 (8/9), 718‒735. Le Deist, F. and V. Tūtlys (2012), ‘Limits to mobility: Competence and qualifications in Europe’, European Journal of Training and Development, 36 (2/3), 262‒285. Le Deist, F. and J. Winterton (2005), ‘What is competence?’ Human Resource Development International, 8 (1), 27‒46. Le Mouillour, I. (2005), European approaches to (credit) transfer systems in VET, Cedefop Dossier series 12, Luxembourg: Office for Official Publications of the European Communities. Lundvall, B-Å. (1988), ‘Innovation as an interactive process: From user-producer interaction to the national innovation systems’, in G. Dosi, C. Freeman, R.R. Nelson, G. Silverberg and L. Soete (eds), Technical Change and Economic Theory, London: Pinter, pp. 349‒367. Lundvall, B-Å. (2002), Innovation, Growth and Social Cohesion. The Danish Model, Oxford: Oxford University Press. Lundvall, B-Å. and S. Borras (1999), The Globalising Learning Economy: Implications for Innovation Policy, Luxemburg: Office for Official Publications of the European Communities. Mandon, N. and O. Liaroutzos (eds) (1994), La gestion des compétences: La méthode ETED en application, Documents No 97, CEREQ, Marseille. Mangham, I. (1986), ‘In search of competence’, Journal of General Management, 12 (2), 5‒12. Mansfield, B. (2004), ‘Competence in transition’, Journal of European Industrial Training, 28 (2/3/4), 296‒309. Mansfield, B. and L. Mitchell (1996), Towards a Competent Workforce, London: Gower. Markowitsch, J. and K. Loumi-Messerer (2008), ‘Development and interpretation of descriptors of the European Qualifications Framework’, European Journal of Vocational Training, 42/43 (3/1), 33‒58. Markowitsch, J. and C. Plaimauer (2009), ‘Descriptors for competence: Towards an interna-

GARAVAN 9781781954171 PRINT.indd 146

22/09/2017 16:31

IHRD: international perspectives on competence and competencies  ­147 tional standard classification for skills and competences’, Journal of European Industrial Training, 33 (8/9), 817‒837. Markowitsch, J., K. Loumi-Messerer, M. Becker and G. Spöttl (2008), ‘Putting Dreyfus into action: The European credit transfer system’, Journal of European Industrial Training, 32 (2/3), 171‒186. McClelland, D. (1973), ‘Testing for competence rather than for “intelligence”’, American Psychologist, 28 (1), 1‒14. MEDEF (2002), Objectif Compétences: Des pratiques Européenne innovantes, Paris: Mouvement des Entreprises de France. MSC (1986), SASU Note 16: Guidance on Designing Modules for Accreditation, Sheffield: Standards and Assessment Support Unit. Manpower Services Commission [mimeo]. Mulder, M. (2011), ‘The concept of competence: blessing or curse?’ in I. Torniainen, S. Mahlamäku-Kultanen, P. Nokelainen and P. Ilsley (eds), Innovations for Competence Management, Lahti: Lahti University of Applied Sciences, pp. 11‒24. Mulder, M. (ed.) (2016), Competence-based Vocational and Professional Education: Bridging the World of Work and Education, Berlin: Springer, forthcoming. Mulder, M., J. Gulikers, H. Biemans and R. Wesselink (2009), ‘The new competence concept in higher education: error or enrichment?’ Journal of European Industrial Training, 33 (8/9), 787‒799. Norris, N. (1991). ‘The trouble with competence’, Cambridge Journal of Education, 21 (3), 331‒341. OECD (1999), Projects on Competencies in the OECD Context: Analysis of Theoretical and Conceptual Foundations, Neuchâtel: Swiss Federal Statistical Office. Oiry, E. and A. d’Iribarne (2001), ‘La notion de compétence: continuités et changements par rapport à la notion de qualification’, Sociologie du Travail, 43 (1), 49‒66. Osterman, P. (2000), ‘Work reorganization in an era of restructuring: Trends in diffusion  and effects on employee welfare’, Industrial and Labor Relations Review, 53 (2), 179–196. Paradeise, C. (1987), ‘Des savoirs aux compétences: qualification et régulation des marchés du travail’, Sociologie du Travail, 29 (1), 35‒46. Polanyi, M. (1967), The Tacit Dimension, London: Routledge and Kegan Paul. Proctor, R.W. and A. Dutta (1995), Skills Acquisition and Human Performance, Thousand Oaks, CA: Sage Publications. Rainbird, H. (1993), ‘Vocational education and training’, in M. Gold (ed.), The Social Dimension: Employment Policy in the European Community, London: Macmillan, pp. 184‒202. Rainbird, H. (2000), ‘Skilling the unskilled: Access to work-based learning and the lifelong learning agenda’, Journal of Education and Work, 13 (2), 183‒197. Raoult, N. (1991), Gestion prévisionnelle des emplois et des compétences en milieu hospitalier. Paris: L’Harmattan. Sandberg, J. (2000), ‘Competence – the basis for a smart workforce’ in R. Gerber and C. Lankshear (eds), Training for a Smart Workforce, London: Routledge, pp. 47‒72. Spencer, L. and S. Spencer (1993), Competence at Work: A Model for Superior Performance, New York: Wiley. Stasz, C. (1997), ‘Do employers need the skills they want? Evidence from technical work’, Journal of Education and Work, 10 (3), 205‒233. Tate, W. (1995), Developing Managerial Competence: A Critical Guide to Methods and Materials, London: Gower. Tūtlys, V. and J. Winterton (2006), ‘Impact of human resource development structure upon the creation of the National Qualification System in Lithuania’, Vocational Training: Research and Reality, 12, 90‒103. van der Klink, M.R. and J. Boon (2003), ‘Competencies: the triumph of a fuzzy concept’, International Journal of Human Resources Development and Management, 3 (2), 125‒137. Weinert, F.E. (2001), ‘Concept of competence: A conceptual clarification’, in D.S. Rychen

GARAVAN 9781781954171 PRINT.indd 147

22/09/2017 16:31

148  Handbook of international human resource development and L.H. Salganik (eds), Defining and Selecting Key Competencies, Göttingen: Hogrefe, pp. 45‒66. White, R. (1959), ‘Motivation reconsidered: The concept of competence’, Psychological Review, 66, 279‒333. Winterton, J. (2000), ‘Social dialogue over vocational training in market-led systems’, International Journal of Training and Development, 4 (1), 26‒41. Winterton, J. (2005), ‘From Bologna to Copenhagen: Developing a European system for credit transfer in VET’, International Journal of Training Research, 3 (2), 47‒64. Winterton, J. (2009), ‘Competence across Europe: Highest common factor or lowest common denominator?’ Journal of European Industrial Training, 33 (8/9), 681‒700. Winterton, J. (2011), ‘Competence in European policy instruments: A moving target for developing a National Qualifications Framework?’ Journal of Contemporary Educational Studies, 62 (5), 72‒87. Winterton, J. (2012), ‘Varieties of competence: European perspectives’ in M. Plitz (ed.), The Future of Vocational Education and Training in a Changing World, Bonn: Springer, pp. 455‒480. Winterton, J. and C. Forde (2013), ‘Europe en crise: vers un modèle heuristique de la restructuration’ in F. Le Deist (ed.), Restructurations et santé au travail: regards pluridisciplinaires, Toulouse: Octarès, pp. 27‒46. Winterton, J. and N. Haworth (2013), ‘Government policy and human resource development’, in G. Saridakis and C. Cooper (eds), How Can Human Resources Drive Growth? Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing, pp. 74‒99. Winterton, J. and R. Winterton (1997), ‘Workplace training and enskilling’, in S. Walters (ed.), Globalization, Adult Education and Training: Impacts and Issues, London: Zed Books, pp. 154‒164. Winterton, J. and R. Winterton (1999), Developing Managerial Competence, London: Routledge. Winterton, J. and R. Winterton (2002), ‘Forecasting skill needs in the UK clothing industry’, Journal of Fashion Marketing and Management, 6 (4), 352‒362. Winterton, J., F. Le Deist, F. and E. Stringfellow (2006), Typology of knowledge, skills and competences: Clarification of the concept and prototype, Cedefop Reference series 64, Luxembourg: Office for Official Publications of the European Communities. Woodruffe, C. (1991), ‘Competent by any other name’, Personnel Management, September: 30‒33. Young, M. (2007), Bringing Knowledge Back In: From Social Constructivism to Social Realism in the Sociology of Education, London: Routledge.

GARAVAN 9781781954171 PRINT.indd 148

22/09/2017 16:31

7. IHRD: investment in human capital and performance Maura Sheehan and Valerie Shanahan

INTRODUCTION The importance of economic development cannot be over-emphasised. Economic development depicts a wide range of indicators, including growth in gross domestic product (GDP), growth in income per capita, increased employment opportunities, improved standards and quality of life. Human capital is the “accumulated stock of skills and talents, and manifests itself in the educated and skilled workforce in the region” (Mathur, 1999, p. 205). While human capital, at any one point in time, is a level variable – albeit subject to depreciation – investment in education and/or training (formal and informal) will increase levels of human capital within an organisation, region, nation and globally and thus has the potential to generate economic change and growth. At the macro-level, there is significant theoretical and empirical evidence that higher rates of human capital investment positively impacts economic growth rates, especially within and across nations (Sunde and Vischer, 2011). At the organisation/firm (‘micro’) level, Becker’s (1962) seminal work on human capital predicts that investment in human capital will enhance employee’s productivity which, in turn, is likely to have a positive impact on organisational level productivity and even financial performance. These two levels of human capital analysis – macro and micro – are generally disconnected within the economics, human resource development (HRD) and training and development literatures. There is a general consensus in the literature that training, and in particular, an organisation’s investment in human resource development (HRD) is associated with increased company performance (Aragon and Sanz-Valle, 2013) and this underlying assumption suggests that HRD does this by enhancing the level and quality of human capital (Bartel, 1994). Individuals rely on HRD opportunities to improve their current skills and competencies and learn new ones (Mathieu, Tannenbaum and Salas, 1992). Organisations rely on HRD to enhance the productivity and performance of their employees which is likely to enhance organisational competitiveness and sustainability. 149

GARAVAN 9781781954171 PRINT.indd 149

22/09/2017 16:31

150  Handbook of international human resource development Organisations that aim to survive and compete in the contemporary knowledge-based global economy, have to acquire and develop worldclass human resource (HR, hereafter) competencies and as well as practices to successfully manage such resources (Moideenkutty, Al-Lamki and Murthy, 2011; Pfeffer, 1994, 1998). Acknowledgement of this relationship has led to research which examines the link between HRD policies and organisation performance. A number of studies have found a positive association between including HRD/training and organisation performance (see, for example, Delery and Doty, 1996; Huselid, 1995; MacDuffie, 1995; Moideenkutty, Al-Lamki and Murthy, 2011; Razouk, 2011; Sheehan, 2012; Wright and Boswell, 2002). The problem of evaluating the results of HRD policies on performance is still perceived as a ‘black box’ and in need of further investigation (Glaveli and Karassavidou, 2011). There are a number of reasons for the existence of this problematic ‘black box’. First, while institutions, such the European Union (EU) (for example, ‘Competitiveness for Growth and Employment’ initiative); the Organisation for Economic Co-operation and Development (OECD) (for example, ‘Skills for Competiveness’ initiative); and the Chartered Institute of Personnel and Development (CIPD), have been emphasising the benefits of HRD for firm and national level competitiveness for at least two decades, many companies maintain an ambiguous position regarding investment in training and development. While companies generally recognise that HRD is an important way to improve workers’ productivity, historically, it is often one of the first resources to be cut when economic growth slows (McCarthy and Sheehan, 2014). This paradoxical situation is influenced, in part, by the fact that companies often do not understand and struggle to demonstrate how investments in HRD can enhance organisational and performance outcomes (Kraaijenbrink, 2011). This often reflects a lack of evaluation of HRD investments (see Riley et al., 2017 for a recent discussion). The key aims of this chapter are to: (a) provide an overview of national measures of levels and quality of human capital investment; and (b) report on findings from a meta-analysis of the association between training and development (T&D, hereafter) policies and organisational outcomes. The results from the meta-analysis are presented in the context of levels and regions of economic development within which organisations are located (for example, advanced economies; emerging; and developing). This enables an initial insight into the potential inter-relationship between macro levels of human capital – including quality – and firm-level T&D policies and performance outcomes. Second, with some important notable exceptions (for example, Sung

GARAVAN 9781781954171 PRINT.indd 150

22/09/2017 16:31

IHRD: investment in human capital and performance  ­151 and Choi, 2014) research on the effects of training on organisational results remains scarce. Firms that do evaluate training often only use selfadministered reports completed by the trainees. Few firms measure the impact of training on performance at an organisational level (Alliger et al., 1998; Aragon and Sanz-Valle, 2013; Kraiger, McLinden and Casper, 2004; Riley et al., 2017). Generally, there has not been the same degree of progress in empirically measuring the link between T&D and organisational outcomes as there has been at the individual level of analysis (that is, from the trainees’/learners’ perspectives) (Rahman et al., 2013; Tharenou, Saks and Moore, 2007). While the importance of organisational-level analyses of any association between HRD policies and performance outcomes is important, we also argue that the potential positive (as well as negative) synergies between HRD policies and the broader macro-economic environment, including the level and quality of national human capital and gross domestic product (GDP, hereafter) growth rates are generally ignored in evaluations of HRD policies. It is argued that analyses of organisationallevel performance outcomes (for example, productivity and financial performance) associated with HRD policies will be enhanced by bridging organisational and national levels of analyses. Such analysis reflects the call by Garavan, McGuire and O’Donnell (2004) for the research and practice of HRD to acknowledge the importance of various levels of analysis and in particular, for more rigorous investigation of levels other than that of the organisation which they suggest have over-shadowed current analyses. The chapter starts by providing an overview of the theory of human capital and economic growth rates. It is emphasised that both the level and quality of human capital will be important for economic growth and that potential organisational level outcomes associated with HRD policies should be analysed within this broader national-level human capital framework. Data are then presented for a sample of countries on the levels and quality of human capital. Drawing upon findings of a meta-analysis of the literature on T&D policies and organisational level outcomes, the chapter then provides an initial analysis of whether the returns to HRD policies appear to influenced – or moderated – by national human capital. Based on the analysis reported in the chapter, implications for synthesising macro and micro-levels of analysis for HRD and performance research are considered. The chapter concludes with recommendations for future research.

GARAVAN 9781781954171 PRINT.indd 151

22/09/2017 16:31

152  Handbook of international human resource development

UNDERSTANDING HUMAN CAPITAL IN THE CONTEXT OF IHRD Micro-level Perspectives of Human Capital While the theoretical underpinning of human resource development (HRD) are diverse (Weinberg, 1998), our focus draws primarily on the interaction between (a) human capital theory (HCT) reflecting an individual’s and/or firm’s discretionary decision to invest in education and/or training and development; and (b) national human resource development (NHRD) reflecting the potential economic and societal benefits of higher levels and quality of an educated workforce (Cornachione and Daugherty, 2008). The former reflects what we refer to here as ‘micro-level’ ­analysis – which has received greater emphasis in the economics and HRD literatures – and the latter, the ‘macro’-level. Critically, it is argued that researchers and practitioners should utilise both levels of analysis when making decisions about and evaluating HRD policies. Human capital (HC, hereafter) theory is based on the assumption that ‘capital’ investments in plant and machinery are similar to the most common type of ‘human’ capital investment: education and training. Becker (1962; 1992) posited that general education and training (for example, University degrees) would be paid for by individuals (and in some contexts, governments), because such qualifications were highly ‘portable’ and transferable by individuals; firm-specific skills (for example, training on a highly customised piece of machinery or operating system) would have limited portability and transferability and would likely need to be paid by the firm; and the costs of any type of education and/or training investment that had dimensions of both general and firm-specific components would be shared by the firm and the employee. Becker’s (1962; 1992) work was premised on the notion of ‘economic rationality’ whereby human capital investment decisions by any and all stakeholders (in particular, individuals, firms/organisations and governments) require returns (including future returns) to such investment to exceed the costs (direct and indirect costs depreciated over time). In practice, however, differentiating between types of human capital investment is difficult and given the knowledge-based focus of so many economies, fewer types of investments are likely to be firm-specific. Moreover, many firms pay, in full, for general types of education and training (for example, MBA; MSc degrees) to ensure the attraction and retention of global talent (Cascio, 2014). Despite the challenges associated with measuring potential returns to HC investment for both individuals and firms, the resource-based view (RBV) theory of the firm is fundamentally premised on the notion that

GARAVAN 9781781954171 PRINT.indd 152

22/09/2017 16:31

IHRD: investment in human capital and performance  ­153 firm-level resources are heterogeneous and differences in combinations of resources over time lead to sustainable competitive advantage (Amit and Schoemaker, 1993; Barney, 1991; Eisenhardt and Martin, 2000). According to Barney (1991), a firm’s internal resources or capabilities have the potential to generate sustainable competitive advantage if these resources possess the following attributes: value, rarity, inimitability, and non-substitutability (VRIN). One of the main resources identified as potentially critical for sustainable competitive advantage is human resources (Barney, 1991; Delery, 1998) as they have the potential to fulfil the VRIN typology (Chadwick and Dabu, 2009). A key tenet of the RBV is that resources, including human resources, are created and developed in a causally ambiguous way (Barney, 1991). Investment in human capital can develop firm-specific employee capabilities that can enhance sustainable competitive advantage (Barney and Wright, 1997; Huselid, 1995). Such employee capabilities generated by HR practices, especially HRD policies, are likely to be unique, valuable and difficult for competitors to imitate or transfer, at least in the short-run, thereby enhancing competitive advantage (Lepak and Snell, 1999). The RBV theory has been criticised for its lack of empirical testability – especially if linked to the utilising criteria of economic rationality and the calculation of returns over time. Moreover, RBV theory focuses only at the micro-level and does not consider the important potential influence of macro-level variables such as levels and quality of human capital. Macro-level Perspectives of Human Capital It is at the macro-level (national-regional and global) whereby any somewhat manageable cost–benefit analysis of returns to human capital investment become far more challenging. Solow (1956) and Romer’s (1990) seminal works predict that human capital is one of the main determinants of economic growth through two distinct channels. One the one hand, human capital might accelerate growth by augmenting or complementing the existing factors of production as in an augmented Solow (1956) framework or in a model along the lines of Lucas (1988). On the other hand, human capital might affect growth through facilitating the diffusion and adoption of new technologies as suggested by Nelson and Phelps (1966) or through innovation as specific in endogenous growth models of Romer (1990; see also Aghion, Howitt and Murtin, 2009; Hanushek and Woessmann, 2008). As demonstrated by Sunde and Vischer (2011) if indeed both of these channels for human capital to impact economic growth are relevant, estimates which are based on restrictive specifications are likely to suffer from omitted variable bias and under-estimate human

GARAVAN 9781781954171 PRINT.indd 153

22/09/2017 16:31

154  Handbook of international human resource development capital’s contribution to economic growth. Sunde and Vischer (2011) estimate the first channel by including the effect of changes in the stock of human capital on growth (this variable could help to capture governments and or organisations investing in more education and training, as well as individuals availing of new opportunities); while the second channel is reflected in the effect of the initial level of human capital on growth. Indeed, Sunde and Vischer (2011) show that estimations of the effects of human capital on economic growth which do not include both channels fail to provide an accurate estimate of the overall relevance of human capital for growth. The authors’ findings – as well as related work by Erosa, Koreshkova and Restuccia (2010) – have important implications for countries at different levels of economic development and for policy. In particular, significant differences are found to the returns to human capital when it is interacted with differences in technological development (that is, higher levels of technological advancement yield higher returns to human capital levels and quality, ceteris paribus). As emphasised by Sunde and Vischer: These results have relevant policy implications and suggest that large scale improvements in education in developing countries might be associated with a double dividend: allowing a country to adopt and operate leading technologies and thereby facilitating the convergence process. In addition, a large stock of knowledge embodied in the population enables countries to innovate and advance the technology frontier in the medium run. (Sunde and Vischer, 2011, p. 18)

Such analysis shows there is potential for significant synergies between macro-level influences and firm’s investment in T&D and HRD policies. Finally, in terms of quality and type of human capital, Science, technology, engineering, and mathematics (STEM) graduates are found to have especially strong benefits for both individuals and society more generally (Kerr and Lincoln, 2010; Winters, 2015). While the benefits of STEM graduates are likely to be more quickly realised in developed countries, reflecting higher levels of accumulated human and technological capital, it is critical that in developing and emerging markets, governments invest in both the level and quality of education, with a particular emphasis on improving primary and secondary maths and science education. Such investments will help to develop critical pipelines of STEM graduates from emerging economies which will enhance future innovation and growth in these economies. Greater numbers of employees with STEM qualifications also has potentially important implications for firm’s recruitment and training and development policies. While the econometric studies outlined provide robust evidence of a

GARAVAN 9781781954171 PRINT.indd 154

22/09/2017 16:31

IHRD: investment in human capital and performance  ­155 positive association between economic growth, innovation and the level and quality of human capital, we now examine examples of these potential relationships in a sample of countries.

COUNTRY DIFFERENCES IN HUMAN CAPITAL INVESTMENT It has been suggested that you can assume that a country can be considered equal to that of an organisation in the sense that they are both based on a similar economic analysis approach of groups of people belonging together and treated as one unit (Verkhohlyad and McLean, 2012). However, to fully understand the impact of human capital investment on a national level you need to consider things such as GDP per capita, total public spending on education (percentage of GDP), expenditure per student on tertiary education (percentage of GDP per capita), educational attainment for total population (Tertiary Age 25+) and FDI per capita. These are just some of the ways to analyse returns to human capital investment on an international scale. We will focus on the some of these in this section. Table 7.1 (columns 1 and 2) shows that among the countries with the 10 highest HDI rankings, 9 of the 10 countries had expenditure on public education as a percentage of GDP (HCI) at ‘very high’ rates (over 5 per cent) (the exception was Singapore, 3.3 per cent). This may reflect a ‘virtuous cycle’ between higher per capita incomes and higher public expenditure on education. Consistent with the econometric findings outlined above, these descriptive data call into question the assumption made by neoclassical economists of an inherent ‘diminishing return’ associated with higher levels of human capital. Rather, it appears higher levels of human capital are likely to be associated with greater technological change, innovation and improved efficiency levels (for example, Tzeremes, 2014). With the exceptions of Denmark and Iceland, the countries with the highest current levels of human capital investment (HCI) are developing economies, with half of these countries located in Africa (Botswana; Ghana; Djibouti; Lesotho; Swaziland). These patterns may be quite important indicators of future development and growth in these currently very poor countries. Moreover, such improvements in the level of education, especially in terms of wider access, should also make these countries more attractive to foreign investors and increase returns made by firms to their T&D/HRD policies. High levels and high rates of investment in human capital do not necessarily correlate with a high quality of human capital. While there is quite significant debate on how to measure human capital quality, the OECD’s PISA survey (OECD, 2014) is widely used as a proxy for quality

GARAVAN 9781781954171 PRINT.indd 155

22/09/2017 16:31

156  Handbook of international human resource development Table 7.1 Human development index (HDI); human capital investment (HCI) levels and quality: an international comparative perspective Human Development Index Rank (HDI)1 & Human Capital Investment2,3 (HCI: Expenditure on Education, Public (% of GDP), 2012 (1)

Human Development Index Rank (HDI) & Countries with the Highest Rates of HCI, 2012

PISA Country

(2)

(3) OECD Average: 494

 1 Norway (6.9)

162 Lesotho (13)

 2 Australia (5.1)  3 Switzerland (5.4)  4 Netherlands (6.0)

44 Cuba (12.9) 128 Timor-Leste (10.1) 10 Denmark (8.7)

  5 United States (5.6)  6 Germany (5.1)   7 New Zealand (7.2)  8 Canada (5.5)  9 Singapore (3.3) 10 Denmark (8.7)

114 Moldova (8.6) 170 Djibouti (8.4) 138 Ghana (8.2) 13 Iceland (7.8) 109 Botswana (7.8) 148 Swaziland (7.8)

Shanghai – China Singapore Hong-Kong China China – Taipei Korea Macao-China Japan Liechtenstein Switzerland Netherlands

PISA PISA PISA Mean Mean Mean score score score Maths, Reading, Science, 2012 2012 2012 (4)

(5)

(6)

OECD OECD OECD Average: Average: Average: 494 496 501 613

570

580

573 561

542 545

551 555

560

523

523

554 538 536 535 531 523

536 509 538 516 509 511

538 521 547 525 515 522

Notes: 1.  The Human Development Index (HDI) is a composite statistic comprising life expectancy, education and per capital income levels which is used to rank countries into four tiers of economic development. Human Development (HDI) scores of 5.3 5 ‘very high’ (rate of human development); 5 4.6 5 ‘high’; 5 3.8 ‘medium’; 5 3.7 ‘low’. 2. Human Capital Investment (HCI) measures total public expenditure (current and capital) on education expressed as a percentage of GDP. Higher shares reflect a greater commitment by a government to investing in education. 3.  HDI is only available for Hong Kong–China, ranked 16th and HCI in 2011 was 3.4%. Sources: Columns 1 and 2: World Bank (2013). Columns 3‒6: OECD (2014). PISA 2012 Results in Focus: What 15-year-olds know and what they can do with what they know.

of ­education held by 15-year-olds in maths, reading and science. The overlap observed earlier between the human development index (HDI) and human capital investment (HCI) measures are not observed, at least in this cross-sectional context (see Table 7.1, columns 3‒6). Shanghai–China

GARAVAN 9781781954171 PRINT.indd 156

22/09/2017 16:31

IHRD: investment in human capital and performance  ­157 Table 7.2 World Economic Forum (WEF) overall and educational human capital indices and global innovation rates

(1)

Education Pillar: Access; Quality; Attainment2 (2)

(3)

Switzerland (1) Finland (2) Singapore (3) Netherlands (4) Sweden (5) Germany (6) Norway (7) United Kingdom (8) Denmark (9) Canada (10)

Finland (1) Canada (2) Singapore (3) Switzerland (4) New Zealand (5) Belgium (6) Netherland (7) Iceland (8) Ireland (9) United Kingdom (10)

Switzerland (1) United Kingdom (2) Sweden (3) Finland (4) Netherlands (5) United States (6) Singapore (7) Denmark (8) Luxembourg (9) Hong King (China) (10)

Overall Human Capital Index1

Global Innovation Index3

Notes: 1. The Overall Human Capital Index is a composite statistic comprising four pillars: education; health and wellness; workforce and employment; the enabling environment (see World Economic Forum (WEF), 2013 for a detailed discussion). 2. The Education Pillar reflects access to education; quality of education; and educational attainment (WEF, 2013, p. 4). 3. Global Innovation Index available at: http://www.globalinnovationindex.org/content. aspx?page5gii-full-report-2014.

and Singapore were top in maths, with students in Shanghai scoring the equivalent of nearly three years of schooling above most OECD countries. Hong Kong–China, Chinese Taipei, Korea, Macao–China, Japan, Liechtenstein, Switzerland and the Netherlands were also in the group of top-performing countries. Among EU countries, only the Netherlands ranks in the top 10 for levels and quality of human capital (4th for HCI and overall 10th on the PISA ranking and above the OECD average for all measures). While Singapore ranked second highest on Pisa it has the lowest HCI rate among the countries with the highest rate of human development. It is important to note this may be a statistical outlier for 2012 as over the past several years the government in Singapore spends close to 20 per cent of its annual budget on education which has contributed to rapid improvements in both the level and quality of human capital and high rates of economic growth (World Bank, 2014). Table 7.2 (column 2) shows that half of the countries that are in the top ten for education (Finland; Canada; Singapore; Switzerland; and the UK)

GARAVAN 9781781954171 PRINT.indd 157

22/09/2017 16:31

158  Handbook of international human resource development are also in the overall human capital index (column 1), indicating a high although imperfect correlation between the two measures. In terms of innovation rankings, only the United States and Luxembourg are ranked in the top 10 for global innovation but are not ranked among the top 10 for either the overall human index or the educational pillar. Thus, broadly consistent with the theory, high levels and quality of human capital appear to be significantly associated with higher standards of living (proxied by the HDI indices) and innovation rates. This analysis, albeit descriptive and cross-sectional, demonstrates the importance for both researchers and practitioners of utilising a holistic approach to analysing human capital – examining human capital in a wider context, for example drawing on the four pillars of the World Economic Forum’s overall human capital index (discussed more below), analysing current levels of human capital investment by governments (estimated by HCI); and evaluating the quality of human capital (proxied here by PISA results). The above would has several implications for IHRD. Firstly, at a national level, it is important to acknowledge that it can take years to introduce change and see the rewards to HRD investments, thus a longterm outlook is critical (Mankin, 2009, p. 20). It is important that government policy in relation to educational expenditure becomes deep-rooted in national political agendas in collaboration with political parties, unions, and educational boards, as exemplified by Singapore. Changes to investment in education can happen opportunistically and often in response to market demands. Changes are also contingent on GDP, economic position and budget priorities in respective countries. Secondly, Verkhohlyad and McLean (2012) highlight the concept of ‘human capital emigration’ which is a loss to a country’s human capital investment and high levels of human capital investment may actually exacerbate high levels of emigration (for example, ‘a brain drain’). Countries, such as Ireland, with a high percentage of GDP spent on education (6.49 per cent) have faced high levels of emigration (averaging 80,000 people per year) since 2009. A brain drain will potentially have a negative impact on economic growth, GDP levels and FDI; unless highly educated emigrants are encouraged to return when national economy’s economic growth rates improve which was done in Ireland in the late 1990s/early 2000s and is currently being used in Poland. And third, most studies have relied on education as the variable for human capital, and this has usually been measured by the average number of years of schooling or the percentage of population finishing secondary or tertiary studies. However, Ramos, Surinach and Artís (2009, p. 2) demonstrate that if the supply of highly educated workers is not matched by demand, then the impact of education on economic growth is not

GARAVAN 9781781954171 PRINT.indd 158

22/09/2017 16:31

IHRD: investment in human capital and performance  ­159 automatically positive, particularly if geographical labour mobility is restricted. Moreover, if highly educated workers do not find a suitable job, the fact that they remain in the region as unemployed or underemployed can also constrain economic growth (Korpi and Tahlin, 2009).

ORGANISATIONAL INVESTMENT IN HUMAN CAPITAL: INTERNATIONAL COMPARISONS Table 7.3 reports the findings from a meta-analysis of peer-reviewed studies that examined the reported relationships between (T&D) pol­ icies and their association with organisational level outcomes. The table examines whether macro-level factors – in particular, the country’s stage of economic development – is associated with organisational and financial performance outcomes. Given the theoretical discussion presented earlier, no a priori assumptions were made about the likely signs of any such associations. Table 7.3 shows that three-quarters of all studies on T&D and performance have been conducted in advanced economies. Just over 10 per cent (n 5 9) have been conducted in the developing world where the majority of the world’s population lives. Given the small sample sizes in noneconomically advanced countries the patterns reported in Table 7.3 have to be interpreted very carefully. In order to avoid very small cells, all nonadvanced economy studies are aggregated for the initial analysis (that is, BRICs; Developing; and MIKT). This analysis finds that of the 19 studies conducted in non-advanced economies, where measures of organisational performance outcomes are available, there is a positive statistically significant relationship with T&D in 16 (84.2 per cent). Of the nine available for financial performance outcomes, eight (88.9 per cent) are positive and statistically significant. Cautiously disaggregating the analysis, in the 10 studies conducted in BRIC countries, for organisational performance, eight were positive and significantly related to T&D policies (one was ambiguous and one study did not measure T&D) and of the three studies that measured financial performance outcomes, all three were positively and significantly associated with T&D interventions. A similar pattern is found for the MIKT countries: for organisational performance all three of the studies were positive and significant; for financial performance, two of the three studies were positive and significant (one study did not find statistical significance). Given the small sample, caution must be used when interpreting this analysis, but these findings do seem to suggest that returns to T&D

GARAVAN 9781781954171 PRINT.indd 159

22/09/2017 16:31

160  Handbook of international human resource development Table 7.3 T&D policies and organisational performance outcomes: the influence of macro-level context Economic Context

Organisational Performance Outcomes

Financial Performance Outcomes

Advanced EU  countries (n 5 26)

Significant 5 18 (81.8%) Non-significant 5 3 (13.6%) Ambiguous 5 1 (4.5%) Measured 5 22 Not measured 5 4 Significant 5 19 (63%) Non-significant 5 5 (18.5%) Ambiguous 5 3 (11.1%) Measured 5 27 Not measured 5 11 Significant 5 8 (88.9%) Non-significant 5 Ambiguous 5 1 (11.1%) Measured 5 9 Not measured 5 1 Significant 5 5 (71.4%) Non-significant 5 2 (28.6%) Ambiguous 5 Measured 5 7 Not measured 5 2 Significant 5 3 (100%) Non-significant 5 Ambiguous 5 Measured 5 3 Not measured 5 -

Significant 5 6 (50.0%) Non-significant 5 5 (41.7%) Ambiguous 5 1 (8.3%) Measured 5 12 Not measured 5 14 Significant 5 10 (62.5%) Non-significant 5 4 (25.0%) Ambiguous 5 2 (12.5%) Measured 5 16 Not measured 5 21 Significant 5 3 (100%) Non-significant 5 Ambiguous 5 Measured 5 3 Not measured 5 7 Significant 5 3 (100%) Non-significant 5 Ambiguous 5 Measured 5 3 Not measured 5 6 Significant 5 2 (66.7%) Non-significant 5 1 (33.3%) Ambiguous 5 Measured 5 3 Not measured 5 -

Advanced  non-EU countries (n 5 38) BRICS (n 5 10)

Developing (n 5 9)

MIKT (n 5 3)

N 5 86

Note:  Notable indicators used to measure organisation performance are divided into two categories: Organisation Performance Outcomes and Financial Outcomes. We then located the country of study of each article and categorised the country into the above typologies based on geographical location and GDP per capita.

policies may be quite significant in developing economies which is broadly consistent with the wider theory and empirical discussions highlighted earlier. These micro-level findings may also reflect high incremental returns (increasing marginal product/productivity per worker) to firms’ T&D policies in economic contexts where the level and/or quality of human capital is relatively low which would be predicted by traditional neoclassical economic theory (Johnson, 2015). However, at the macro-

GARAVAN 9781781954171 PRINT.indd 160

22/09/2017 16:31

IHRD: investment in human capital and performance  ­161 level, we have seen that these neoclassical assumptions of diminishing returns to human capital do not seem to hold, reflecting positive and highly synergetic interactions between human capital investment, economic growth and innovation rates. It is likely that such positive returns reflect both positive externalities and social effects associated with human capital investment. Externalities are outcomes that are due to the investment decision of some individuals but affect people who did not invest in education and for which no compensation is paid. Lucas (1988) and Jovanovic and Rob (1989) consider technological externalities, where the free movement of workers between firms within the same industry sectors and similar production technologies facilitates the transfer of knowledge and ideas (a positive externality). Another positive externality associated with acquiring human capital may be that jobs which require more schooling are likely to be more desirable on both monetary and non-monetary grounds (Rosen, 1985) but are not a direct outcome of the investment. There is also considerable evidence on many of the social effects of human capital and in particular education (Behrman and Stacey, 1997; Haveman and Wolfe, 1984) which can offset the traditional assumption of diminishing returns. Specifically, human capital has been related to improved health outcomes (for example, Grossman and Kaestner 1996); lower crime rates (Grogger, 1998 and Lochner and Moretti, 2004); and measures of social capital, trust and social participation (Helliwell and Putnam, 1999; Milligan, Moretti and Oreopoulos, 2003 and Schuller et al., 2001). Such findings are also broadly consistent with the RBV theory of the firm, at the micro-level, within the management literature. These trends are even more likely in knowledge-intensive economies and industries. In sum, by utilising a multi-level lens, the analysis presented here suggests that human capital investment – whether by governments or firms – generates positive returns in highly heterogeneous contexts.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE This chapter has presented a macro and micro level analysis of human capital investment in an international context. It has important implications for IHRD research and practice. The most important theme is that IHRD researchers and practitioners should utilise holistic and dynamic measures of human capital. At the macro-level, the analysis presented in this chapter provided an overview of the relationship between measures of a country’s quality of life (proxied by the human development index, HDI; human capital investment, HCI measured as public expenditure on

GARAVAN 9781781954171 PRINT.indd 161

22/09/2017 16:31

162  Handbook of international human resource development education as a percentage of GDP); education index (measured by access; quality; attainment to education); estimates of the quality of maths, reading and sciences; and critically, in terms of future competitive and dynamic sustainability, global innovation rankings. At the micro-level, the majority of studies included in the meta analysis found positive associations between T&D policies and organisational performance outcomes – with the strongest outcomes reported for non-advanced/developing economies. The macro-level analysis reported that within the 10 countries with the highest rates of HCI, eight are within developing economies, including four in Africa. High levels of educational quality (especially proficiency in mathematics and sciences) will help to establish future pipelines of employees competent to work in STEM-related occupations and thus has potential significant benefit for innovation rates and could help reduce the current scarcity of such employees faced by so many firms currently. The analysis of PISA rankings presented in Table 7.2 illustrate that many Asian countries have very high rates of educational quality, with only three European countries (Liechtenstein, Netherland and Switzerland) ranked in the top 10 and none were in North or South America or Africa. Thus, both governments and firms have considerable opportunity to enhance the quality of education in almost all regions of the world. Moreover, given the positive relationships found between human capital levels, quality and investment rates, on the one hand, economic and firm-level outcomes, on the other hand, governments and foreign direct investors, especially HRD specialists within MNCs located, should take a multi-level approach to T&D and HRD policies. While this chapter has emphasised the importance of linking macro and micro-levels of analysis to HRD and T&D research and practice, at the macro-level it focused on only one pillar of the World Economic Forum’s (WEF, 2013) recommend measures of human capital: the education pillar. The WEF’s aggregate measure of the education pillar: (a) access to ­education – critical for reducing gender gaps in developing countries (World Bank, 2011); (b) quality of education and (c) educational attainment was briefly examined (see Table 7.2). At the micro-level, given that the organisational performance outcomes reported in Table 7.3 show an interesting initial association between micro and macro-level outcomes, we believe this has important implications for future IHRD research and practice. In particular, we encourage IHRD researchers and practitioners to engage with and utilise the WEF’s three other pillars of human capital: (1) Health and Wellness (indicators relating to a population’s physical and mental well-being from childhood to adulthood); (2) Workforce and Employment (indicators relating to experience, talent and training in a

GARAVAN 9781781954171 PRINT.indd 162

22/09/2017 16:31

IHRD: investment in human capital and performance  ­163 country’s workforce (it is appreciated many organisations will have such measures in place already but we encourage that they are linked to the other human capital pillars)); and (3) Enabling Environment which captures the legal framework and other factors that enable returns on human capital (this may influence some of the differences in findings in Table 7.3 between EU and non-EU advanced countries). In addition to these metrics, IHRD researchers and practitioners also need to be cognisant of other global human capital trends that have emerged in recent research in relation to engaging the twenty-first century workforce (Deloitte University Press, 2014). In particular: (1) the need to address leadership shortfalls, at all levels; (2) attract, engage and retain global talent – and to ensure talent management is inclusive and diverse (Sheehan and Anderson, 2015); and (3) ensure that the HR and HRD teams at all levels (whether local, regional, national, global) are themselves equipped with the most current level and quality of human capital to enable competitive and strategic contributions. Indeed, as this analysis has shown levels and quality of human capital, which influence the presence of critical new skills – and their uneven distribution around the world – should spur governments and firms to develop new ways to attract and develop capabilities and share knowledge and expertise.

CONCLUSION This chapter has aimed to bridge the gap between two levels of human capital analysis – macro (that is, national level analysis) and micro (that is, organisational/firm level analysis). The chapter provided an overview of national measures of levels and quality of human capital and human capital investment and reported findings from a meta-analysis of the association between training and development (T&D) policies and organisational outcomes, set within broad national contexts of developed, emerging and developing economies. At the micro-level, the analysis suggests that macrolevels of human capital are likely to be a pivotal moderator in associations between T&D inputs and organisational level performance outputs. The analysis has important implications for both developed and developing economies. For developed economies a ‘virtuous cycle’ of high levels of human capital and high levels of human development emerged; for rapidly emerging economies such as Singapore and Hong-Kong high quality human capital investment is likely to be critical for future growth and innovation; and for developing economies such as Lesotho, Moldova and Timor, the retention of current high levels of human capital investment is likely to be critical for future economic development.

GARAVAN 9781781954171 PRINT.indd 163

22/09/2017 16:31

164  Handbook of international human resource development The uncertainties that the UK’s decision to exit the EU (“Brexit”) and changes to US immigration under President Trump is generating unchartered global scenarios in relation to international migration flows and associated IHRD. These changes are likely to influence the future of IHRD in Western economies for decades. Given the globalised world in which IHRD researchers and practitioners work, we encourage both groups to use globalisation as a rationale to bridge and synthesise levels of analysis – in particular – organisational and national contexts. Regions and regional variances in the measures reported here is also an important area for future research. Both the theory and practice indicate that there are potentially very high rates of return associated with educating and developing currently under-utilised population cohorts – in particular women and other marginalised groups such as ethnic minorities and the disabled – especially in emerging economy contexts. These often untapped and under-utilised groups should be given particular emphasis in future research and investment decisions by governments and firms. As the analysis presented in this chapter has shown human capital investment appears to be a ‘win-win’ at multiple-levels of analysis and for multiple stakeholders.

REFERENCES Aghion, P., Howitt, P. and Murtin, F. (2009). The relationship between health and growth: when Lucas meets Nelson-Phelps. Mimeo, Boston: Harvard University. Alliger, G.M., Tamnenbaum, S.I., Bennett Jr, W., Traver, H. and Shotland, A. (1998).  A Meta-analysis of the Relations Among Training Criteria. Executive Consulting Group. New York: Slingerlands. Amit, R. and Schoemaker, P. (1993). Strategic assets and organisational rent. Strategic Management Journal, 14, 33‒46. Aragon, I. and Sanz-Valle, R. (2013). Does training managers pay off?  The International Journal of Human Resource Management, 24(8), 1671‒1684. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99‒120. Barney, J.B. and Wright, P.M. (1997). On becoming a strategic partner: The role of human resources in gaining competitive advantage. CAHRS Working Paper #97-09. Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies. http://digitalcommons.ilr.cornell.edu/cahrswp/150 (accessed 9 May 2017). Bartel, A.P. (1994). Productivity gains from the implementation of employee training programs. Industrial Relations: A Journal of Economy and Society, 33, 411–425. Becker, G.S. (1962). Investment in human capital: a theoretical analysis. Journal of Political Economy, 70(1), 9‒49. Becker, G.S. (1992). Education, labor force quality, and the economy: The Adam Smith address. Business Economics, 27(1), 7‒12. Behrman, J.R. and Stacey N. (1997). The Social Benefits of Education. Ann Arbor: University of Michigan Press. Cascio, W. (2014). Investing in HRD in uncertain times now and in the future. Advances in Developing Human Resources, 16(1), 108‒122.

GARAVAN 9781781954171 PRINT.indd 164

22/09/2017 16:31

IHRD: investment in human capital and performance  ­165 Chadwick, C. and Dabu, A. (2009). Human resources, human resource management, and the competitive advantage of firms: Toward a more comprehensive model of causal linkages. Organization Science, 20(1), 253‒272. Cornachione, E. and Daugherty, J. (2008). National HRD and investment in human capital: Opportunity costs of US postsecondary education. Mimeo, University of Illinois at Urbana-Champaign. Delery, J.E. (1998). Issues of fit in strategic human resource management: Implications for research. Human Resource Management Review, 8(3), 289‒309. Delery, J.E. and Doty, D.H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of Management Journal, 39(4), 802‒835. Deloitte University Press (2014). Global Capital Trends 2014: Engaging the 21st-century workforce. Deloitte Consulting LLP and Bersin by Deloitte. Eisenhardt, K.M. and Martin, J.A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10‒11), 1105‒1121. Erosa, A., Koreshkova, T. and Restuccia, D. (2010). How important is human capital? A quantitative theory assessment of world income inequality.  The Review of Economic Studies, 77(4), 1421‒1449. Garavan, T.N., McGuire, D. and O’Donnell, D. (2004). Exploring human resource development: A levels of analysis approach. Human Resource Development Review, 3(4), 417‒441. Glaveli, N. and Karassavidou, E. (2011). Exploring a possible route through which training affects organizational performance: The case of a Greek bank. The International Journal of Human Resource Management, 22(14), 2892‒2923. Grogger, J. (1998). Market wages and youth crime. Journal of Labor Economics, 16(4), 756‒791. Grossman, M. and Kaestner, R. (1996). Effects of education on health, in J.R. Behrman and N. Stacey (eds), The Social Benefits of Education. Philadelphia: University of Pennsylvania, pp. 69‒124. Hanushek, E.A. and Woessmann, L. (2008). The role of cognitive skills in economic development. Journal of Economic Literature, 46(3), 607‒668. Haveman, R. and Wolfe, B. (1984). Schooling and economic well-being: The role of nonmarkets effects. Journal of Human Resources, 19(3), 377–407. Helliwell, J.F. and Putnam R.D. (1999). Education and social capital. NBER Working Paper 7121. Huselid, M.A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635‒672. Johnson, P. (2015). A glossary of political economy terms: The law of diminishing returns. http://www.auburn.edu/~johnspm/gloss/diminishing_returns_law_of (accessed August 2015). Jovanovic, B. and Rob, R. (1989). The growth and diffusion of knowledge. Review of Economic Studies, (56), 569‒582. Kerr, W. and Lincoln, W. (2010). The supply side of innovation: H-1B visa reforms and US ethnic invention. Journal of Labor Economics, 28(3), 473‒508. Korpi, T. and Tahlin, M. (2009). Educational mismatch, wages, and wage growth: Overeducation in Sweden, 1974‒2000. Labour Economics, (16), 183–193. Kraaijenbrink, J. (2011). Human capital in the resource-based view, in Alan Burton-Jones and J.-C. Spender (eds), The Oxford Handbook of Human Capital. Oxford: Oxford University Press, pp. 218‒237. Kraiger, K., McLinden, D. and Casper, W.J. (2004). Collaborative planning for training impact. Human Resource Management, 43(4), 337‒351. Lepak, D.P. and Snell, S.A. (1999). The human resource architecture: Toward a theory of human capital allocation and development. Academy of Management Review, 24(1), 31‒48. Lochner, L. and Moretti, E. (2004) The effect of education on crime: Evidence from prison inmates, arrests, and self-reports. American Economic Review, 94(1), 155‒189.

GARAVAN 9781781954171 PRINT.indd 165

22/09/2017 16:31

166  Handbook of international human resource development Lucas, R.E. (1988). On the mechanics of economic development.  Journal of Monetary Economics, 22(1), 3‒42. MacDuffie, J.P. (1995). Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry. Industrial & Labor Relations Review, 48(2), 197‒221. Mankin, D. (2009). Human Resource Development. Oxford: Oxford University Press. Mathieu, J.E., Tannenbaum, S.I. and Salas, E. (1992). Influences of individual and situational characteristics on measures of training effectiveness.  Academy of Management Journal, 35(4), 828‒847. Mathur, C. (1999). Human capital-based strategy for regional economic development. Economic Development Quarterly, 13(3), 203‒216. McCarthy, A. and Sheehan, M. (2014). Uncertainty and ongoing economic turbulence: Implications for HRD. Advances in Developing Human Resources, 16(1), 1‒12. Milligan K., Moretti, E. and Oreopoulos, P. (2003) Does education improve citizenship? Evidence from the US and the UK, NBER Working Paper 9584. Moideenkutty, U., Al-Lamki, A. and Sree Rama Murthy, Y. (2011). HRM practices and organizational performance in Oman. Personnel Review, 40(2), 239‒251. Nelson, R. and Phelps, E. (1966). Investment in humans, technological diffusion, and economic growth. American Economic Review, 51(2), 69‒75. OECD. (2014). PISA 2012 Results in Focus: What 15-year-olds know and what they can do with what they know. Paris: OECD. Pfeffer, J. (1994). Competitive advantage through people.  California Management Review, 36(2), 9. Pfeffer, J. (1998).  The Human Equation: Building Profits By Putting People First. Boston: Harvard Business Press. Rahman, A.A, Ng, I.S., Sambasivan, M. and Wong, F. (2013). Training and organizational effectiveness: Moderating role of knowledge management process.  European Journal of Training and Development, 37(5), 472‒488. Ramos, R., Surinach, J. and Artís, M. (2009). The effectiveness of regional active labour market policies to fight against unemployment: An analysis for Catalonia. IZA Discussion Paper. Razouk, A. (2011). High-performance work systems and performance of French small- and medium-sized enterprises: Examining causal order.  The International Journal of Human Resource Management, 22(02), 311‒330. Riley, S., Michael, S., and Mahoney, J. (2017). Human capital matters: Market valuation of firm investments in training and the role of complementary assets. Strategic Management Journal. doi: 10.1002/smj.2631. Romer, P. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71‒S102. Rosen, S. (1985). The theory of equalizing differences, in O. Ashenfelter and R. Layard (eds), Handbook of Labour Economics. Amsterdam: North-Holland, pp. 357‒386. Schuller, T., Bynner, J., Green, A., Blackwell, L., Hammond, C. and Preston, J. (2001). Modelling and measuring the wider benefits of learning: A synthesis. Wider Benefits of Learning Papers No. 1. London: Institute of Education. Sheehan, M. (2012). Investing in management development in turbulent times and perceived organisational performance: A study of UK MNCs and their subsidiaries. The International Journal of Human Resource Management, 23, 2491‒2513. Sheehan, M. and Anderson, V. (2015). Editorial: Talent management and organisational diversity: A call for research. Human Resource Development Quarterly, 26(4), pp. 349–358. Solow, R.M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65‒94. Sunde, U. and Vischer, T. (2011). Human capital and growth: Specification matters. IZA Discussion Paper (DP): 5991.Bonn: IZA. Sung, S.Y. and Choi, J.N. (2014). Do organizations spend wisely on employees? Effects

GARAVAN 9781781954171 PRINT.indd 166

22/09/2017 16:31

IHRD: investment in human capital and performance  ­167 of training and development investments on learning and innovation in organizations. Journal of Organizational Behavior, 35(3), 393‒412. Tharenou, P., Saks, A.M. and Moore, C. (2007). A review and critique of research on training and organizational-level outcomes.  Human Resource Management Review,  17(3), 251‒273. Tzeremes, N.G. (2014). The effect of human capital on countries’ economic efficiency. Economics Letters, 124(1), 127‒131. Verkhohlyad, O. and McLean, G.N. (2012). Applying organizational commitment and human capital theories to emigration research.  European Journal of Training and Development, 36(2/3), 308‒328. Weinberg, L.A. (1998). Commonly held theories of human resource development. Human Resource Development International, 1(1), 75‒93. Winters, J. (2015). Do high levels of education and skills in an area benefit wider society? IZA World of Labor, 130, 1‒10. World Bank (2011). World Bank Group Education Strategy 2020. Washington DC: World Bank. World Bank (2013). World Development Indicators 2013, Washington, DC: World Bank. http://data.worldbank.org (accessed August 2015). World Bank (2014). Singapore economic data, Washington, DC: World Bank. http://data. worldbank.org/indicator/NY.GDP.MKTP.KD.ZG (accessed August 2015). World Economic Forum (WEF) (2013). The Human Capital Report 2013. Insight Report. Switzerland: The World Economic Forum. Wright, P.M. and Boswell, W.R. (2002). Desegregating HRM: A review and synthesis of micro and macro human resource management research. Journal of Management, 28(3), 247‒276.

GARAVAN 9781781954171 PRINT.indd 167

22/09/2017 16:31

GARAVAN 9781781954171 PRINT.indd 168

22/09/2017 16:31

PART II PROCESSES

GARAVAN 9781781954171 PRINT.indd 169

22/09/2017 16:31

GARAVAN 9781781954171 PRINT.indd 170

22/09/2017 16:31

8. Green IHRD, sustainability and environmental issues Claire Valentin

INTRODUCTION There has been a growing interest in environmentally conscious or ‘green’ HRD practice, but green international HRD (IHRD) has to date been under-researched. Green IHRD is concerned with IHRD interventions to facilitate individual learning and organizational development which contribute to sustainable international organizational policies and practices. Sustainable organizational practices and policies should increase the positive environmental impact and decrease the negative environmental and social consequences of organizational behaviours. Learning is central to developing organizational sustainability, and IHRD practitioners can play a key role in the education of employees on green issues (Williams and Turnbull, 2015). IHRD with its focus on learning and development is ideally placed to play a central role in organizational sustainability, to support learning for and about sustainability within organizations. Sustainability has increasingly become a strategic issue for organizations, and thus needs a strategic focus from IHRD. IHRD risks becoming marginalized if it does not develop a strategic role in the development and implementation of sustainability policies and practices (Harris and Tregidga 2012). However, sustainability presents challenges to some of the premises underpinning IHRD. Whereas strategic IHRD suggests a focus on the requirements for organizational success, a sustainability focus on the triple bottom line (Elkington, 2004) looks beyond the organization, to society and to the environment. Sustainability requires approaches which encourage learning about new things and learning in new ways (Valentin 2015). This chapter presents some ways of thinking about green IHRD. A conceptual framework for green IHRD is presented, which highlights how competing ways of thinking about sustainability are reflected in differing organizational and IHRD practices. Some lessons for IHRD are drawn out and suggestions presented for the future research and practice agenda. The chapter draws on literature on HRD and sustainability, HRM 171

GARAVAN 9781781954171 PRINT.indd 171

22/09/2017 16:31

172  Handbook of international human resource development l­iterature which has an international focus on sustainability and learning and development, literatures on sustainability and learning, and on critical management research. The chapter first examines the construct of green HRD, and then goes on to draw out the key features of green IHRD, though the lens of a conceptual framework, which identifies three orientations to green IHRD. These three orientations are then examined in some detail, exploring how they could be reflected in different aspects of the practice of green IHRD. This is followed by a discussion on the implications for IHRD research and practice, and final conclusions are then drawn.

DEFINING GREEN IHRD IHRD authors have addressed green IHRD from a number of perspectives. Some have sought to deepen understanding of IHRD sustainability practices. Garavan and McGuire (2010) explore HRD’s role in embedding corporate social responsibility (CSR) and sustainability in organizations; Garavan et al. (2010) explore behavioural barriers to CSR. Others present guidance on implementation of green HRD practices. McGuire (2014) presents a model of green HRD, which proposes 6 R’s of sustainable environmental activity – reduce, reuse, recycle, redesign, renew, re-educate. Overarching this is the need for green leadership, communication, and the promotion of shared environmental vision in the organization. Others have sought to develop conceptual understandings of green HRD. Ardichvili (2013) provides a conceptual framework incorporating corporate social responsibility (CSR), corporate sustainability, and business ethics, linked in a triad, and argues that analysis is needed at the level of the individual, the organization, and society; Scully-Russ (2015) provides a green HRD conceptual framework incorporating three types of knowledge (performative, narrative and scientific), which stressed a multidisciplinary approach to understanding, noting dynamic tensions between competing knowledges. The main contribution of IHRD is to support the organization towards sustainability, through its focus on individual and organizational learning, change and development (Sadler-Smith, 2015). HRD can contribute towards building organizational capabilities for change in economic, social and environmental terms (Colbert and Kurucz, 2007). Moving towards sustainability requires new conceptual knowledge, management knowledge, and practical knowledge (Fenwick, 2007). Implementing sustainable development may require organizational culture change, the development of new leadership competencies, changes in staff awareness

GARAVAN 9781781954171 PRINT.indd 172

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­173 and knowledge, and new behaviours (Rimanoczy and Pearson, 2010). As Siebenhuner and Arnold (2007, p. 340) note, “processes and products need to be re-invented, controlling systems have to integrate new sets of data, external and internal communication strategies require revisions and basic values and knowledge systems need to adapt”. HRD can contribute insights into systems change, human capacity and performance development, and the development of leaders’ knowledge and skill (Scully-Russ, 2012). Haddock et al. (2010) see green HRD aligning economic, environmental and social growth, through “a cyclic process of continuous development and transformation of self, others and the organization” (Haddock et al., 2010, p. 3).

IDENTIFYING THE COMPONENTS OF GREEN IHRD This section examines green HRD from the perspective of IHRD. It draws on a number of relevant conceptions of green HRD to create a conceptual framework for green IHRD. Whilst there is increasing focus on green HRD, much of which is of relevance to IHRD, to date there has been little focus in the HRD literature on green IHRD. The international focus potentially presents a wide agenda for green IHRD. The IHRD contribution to sustainability is linked to the status, roles, strategies and practices of HRD in individual organizations, at different developmental stages, operating in varying business environments. Sustainable practice needs to be contextualized within the organization, the business and national/international context. Whilst there can be no blueprints or standard practices for green IHRD, a key focus of IHRD, organizational learning, provides a central platform for developing green IHRD. Conceptual frameworks on green HRD and on IHRD developed by a number of HRD scholars provide a basis for mapping the components of green IHRD. Valentin (2015) proposes a Triple Bottom Line conceptual framework for framing HRD and sustainability with respect to practice, teaching and research. Drawing on Habermas’s (1972) three knowledge constitutive interests, ‘technical’, ‘practical’ and ‘emancipatory’ reasoning, she identifies three orientations for organizational and HRD responses to sustainability, ‘Compliance’, ‘Cooperation’ and ‘Co-existence’. Organizational ‘Compliance’ with environmental regulations and a shareholder locus, with an HRD input of training, is a necessary but limited response. A ‘Cooperation’ orientation involves HRD stimulating a more questioning and awareness raising approach, and taking a wider stakeholder perspective towards the challenges presented by sustainability, emphasizing the need for deep learning. An orientation

GARAVAN 9781781954171 PRINT.indd 173

22/09/2017 16:31

174  Handbook of international human resource development of ‘Co-existence’ recognizes that the complex challenges of sustainability involve a problem-posing approach for HRD. Garavan and McGuire (2010) propose the HRD contribution to sustainability operates across three levels: foundation – building foundations for sustainability; traction – gaining a foothold for sustainability in the organization; and integration – where sustainability is fully integrated into the organization. They suggest that the challenge for HRD is to support the organization to move through these stages, to develop an integrated approach to sustainability, representing a move from a functionalist to a learning approach. From the perspective of IHRD, Anderson (2015) identifies three distinct but overlapping conceptions in examining HRD and offshore outsourcing – tactical, strategic, and transformational. For both Anderson and Garavan and McGuire’s frameworks, moving from one stage to the next is not an inevitable trajectory, as it may involve radically different approaches. This suggests a continuum of practices for IHRD, characterized by different underpinning ideological assumptions. Drawing on Valentin (2015), Garavan and McGuire (2010) and Anderson (2015), a conceptual framework for green IHRD is proposed (Table 8.1). The Green IHRD Conceptual Framework identifies three orientations to green HRD: Tactical Green IHRD, Strategic Green IHRD, and Transformational Green IHRD. Six aspects of green IHRD are posited, which identify underpinning assumptions about the organization with respect to sustainability, the locus of stakeholder engagement, and how this translates into IHRD practice. The six foci are: knowledge constitutive interest, sustainability conceptualization, stakeholder focus, HRD focus, HRD practice, and learning focus. These are elaborated upon in the following sections.

GREEN IHRD CONCEPTUAL FRAMEWORK This section examines the different components of the green IHRD conceptual framework. The three proposed orientations to green IHRD – tactical, strategic, and transformational are explained and the HRD role is explored, including how this manifests itself in IHRD practices and interventions (see Table 8.1). Each section is followed by a critique of the particular orientation.

GARAVAN 9781781954171 PRINT.indd 174

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­175 Table 8.1 Green IHRD conceptual framework

Knowledge constitutive interest Sustainability conceptualization Stakeholder focus

IHRD focus

IHRD practice

Learning focus

Tactical Green IHRD

Strategic Green IHRD

Transformational Green IHRD

Technical  reason

Practical reason

Emancipatory  reason

Legal compliance Bounded  rationality Consensus Shareholder focus

Triple bottom  line Accommodation  discourse Stakeholder  focusorganization/ business stakeholders Strategic HRD

Eco-consciousness Embedded  sustainability Wicked problems Broad stakeholder  focus, networks, alliances, fuzzy boundaries

Principle,  awareness raising, development, best practice Single and  double-loop learning, questioning prescriptive, explanatory

Problem posing,  challenge, critique Exploratory, dissensus

CSR,  Sustainability, ethics, Problem solving,  HRD as a business service Pragmatism,  information, recycling, training, CSR framework Single-loop  learning Descriptive

HRD as  sustainability leader

Deutero learning Collaborative  learning Reflexivity,  problematization Multidisciplinary

TACTICAL GREEN IHRD Knowledge Constitutive Interest Technical reason focuses on means to secure ends that prioritize the interests of the organization. Willmott (2003 p. 36) notes that the technical interest “prioritises prediction and control over natural and social forces, concentrating on improving efficiency and effectiveness”. Technical

GARAVAN 9781781954171 PRINT.indd 175

22/09/2017 16:31

176  Handbook of international human resource development reason in IHRD focuses on more effective and efficient ways to enhance the interests of the organization. Sustainability Conceptualization Sustainability in this context focuses on the relationship between economic outcomes and sustainability outcomes, with the aim to increase efficiency of resource exploitation via innovation (Kramar, 2014). The triple bottom line is addressed from the perspective of enlightened self-interest (Kopnina, 2013). Organizational practice might include compliance with legal and regulatory requirements and a focus on sustainability to the extent that the company can carry out its business as usual. Simon’s (1991) concept of ‘bounded rationality’ argues that decision makers face limitations both in the information available to them, and their cognitive and temporal ability to handle its complexity, and thus can only review a limited range of factors and possibilities (Clegg, Kornberger and Pitsis, 2008, p. 286). In conditions of uncertainty, the most appropriate decisions are those that are sufficient and satisfying rather than optimally rational, referred to as ‘satisficing’ (Clegg, Kornberger and Pitsis, 2008). Thus managers may make decisions that serve to satisfy the commercial needs of the organization to maximize shareholder value, but tend to be focused on short-term results (Garrity, 2012). Stakeholder Focus The shareholder perspective on management sees the main role of the firm as maximizing shareholder value. Stakeholder engagement with respect to environmental issues aims to minimize any adverse impacts on the profitability of the firm, or maximize benefit to the firm. This might include paying attention to local stakeholders of a global firm, and international bodies requiring compliance with regulations. IHRD Focus The IHRD role is predominantly one of business service, providing support for the organization to start to focus on reducing waste, reusing and recycling, and development of a corporate social responsibility (CSR) and sustainability policies, and environmental education for staff. The IHRD contribution is functionalist and emphasizes performance, focused on the needs of the marketplace and the agenda of profitability (Garavan and McGuire, 2010; Kramar, 2014). The IHRD focus may be on leadership roles for increasing sustainability, facilitating communication and

GARAVAN 9781781954171 PRINT.indd 176

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­177 coordination across geographically dispersed organizations (Gubbins and Garavan 2009). IHRD Practice HRD practice takes a largely ‘training’ focus (McCracken and Wallace, 2000), for example training about regulatory requirements and technical standards, and to develop relevant technical skills. Training would aim to increase employee awareness of the organization’s environmental goals and strategy (Jackson et al., 2011). It would provide training on the social and environmental responsibilities of the organization, present the business case for sustainability, and implement IHRD practices and support culture changes to further the company’s business and sustainability goals (Lockwood, 2004; Schramm, 2008). The IHRD role includes developing employees’ cultural competence, expatriate manager training in cultural awareness and ethics, development of global managers, developing communication skills, working with cross functional teams (Garavan and McGuire 2010, Gubbins and Garavan (2009). Sustainability would be mapped onto these activities. Employee training in environmental management would focus on such things as: increasing staff awareness of the organizational environmental impact and ‘eco-literacy’; developing skills, such as collecting waste data; training for green jobs (Renwick, Redman and Maguire, 2012). Learning Focus In terms of organizational learning for sustainability, when operating within the shareholder paradigm, organizational learning is inwardly focused, predominantly displaying mechanistic single loop learning, which leads to behaviour change but without challenging basic organizational assumptions about the organizational role with respect to sustainability (Neale, 1997). Thus the organization adapts to the changing regulatory, commercial or consumer environments, not from any deep ethical commitment to sustainability, but purely from the commercial concern. Critique of Tactical Green IHRD IHRD certainly needs to be business focused – the business partner model is well established, and practitioners of IHRD need to develop a high level of business literacy to effectively engage in the full role of IHRD. The shareholder model suggested here may also incorporate a high level of analysis and understanding of organizational stakeholders, the better

GARAVAN 9781781954171 PRINT.indd 177

22/09/2017 16:31

178  Handbook of international human resource development to understand the sustainability concerns of customers, for example. However, the prime purpose is seen to satisfy shareholder value; the shareholder model puts the needs of the business to the fore. The strategic IHRD role is a unitarist one of supporting the bottom line of economic success within the market (Parkes and Borland, 2012). Decisions made without any deep ethical commitment to environmental stewardship can result in a façade of ‘green washing’. Jermier and Forbes (2003, p. 166) comment on “ceremonial greening. . .public, ceremonial displays, obscuring the alternative reality of organizational minimalism, inaction or even malfeasance”. Bounded rationality helps decision makers to focus on solutions to complex and intractable problems presented by sustainability, but a seemingly win–win case does not in fact guarantee the identification of the most sustainable strategy options (Hahn and Figge, 2011). Organizational satisficing does not sufficiently take into account the impact on the wider environment or community, or focus on the longer term public interest. A bounded notion of instrumentality ‘establishes a systematic a-priori predominance of economic organizational outcomes over environmental and social aspects’ (Hahn and Figge, 2011, p. 325). This ‘business as usual’ world view is ‘technocentric’ and will do little to address the deep and complex problems associated with a concern for sustainability (Kurucz, Colbert and Marcus, 2014; Kopnina, 2013, p. 52). For example, a recent study (Carrington, 2016) warns of the risks to the financial economy from climate change, but noted that awareness in the financial sector was low. The following two perspectives move the focus beyond the needs of the business to that of the wider context of stakeholders and the environment.

STRATEGIC GREEN IHRD Knowledge Constitutive Interest Practical reason focuses on the facilitation of communication and advancement of mutual understanding, to gain appreciation of differing perspectives and experiences. For sustainability, IHRD looks beyond the narrow confines of market forces to see the organization as part of a wider environmental and social context. Sustainability Conceptualization A strategic approach to sustainability recognizes interconnection and interaction of stakeholders, organization and the environment, which

GARAVAN 9781781954171 PRINT.indd 178

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­179 incorporates organization performance measures to encompass “employee well-being, community well-being and quality of life” (Kramar, 2014, p. 1072). It looks beyond profit maximization to focus on social and environmental values, and moral obligations to all those who have a stake in the business (Mankin, 2009). It should seek to cultivate a corporate conscience, and pay “balanced attention to environmental, economic and social elements of the system” (Ardichvili, 2013, p. 457). Stakeholder Focus The sustainability focus sees the organization within a wider context of stakeholders. A stakeholder orientation to management argues that an organization needs to pay attention to relationships with a wide range of people or groups who may be able to influence or who are affected by its activities, both internal and external, and direct and indirect stakeholders. In contrast to a shareholder focus solely on finance and performance, the organization acknowledges responsibility for people and environments affected by its actions (Fenwick and Bierema, 2008). Hatcher (2002) suggests seeing the environment as a stakeholder. IHRD is expected to balance a competing set of stakeholder demands (MacKenzie, Garavan and Carbery, 2012, p. 354). A stakeholder-based IHRD respects the plurality of stakeholder interests, earns legitimacy from various internal and external stakeholders, and recognizes the interdependency of stakeholder interests (Baek and Kim, 2014). IHRD Focus A strategic approach to IHRD assumes that HRD activities need to be integrated with organization strategic objectives, and that HRD activ­ ities contribute to organizational performance. As MacKenzie, Garavan and Carbery (2012) argue, “the shift from operational and tactical HRD to strategic HRD has witnessed a metamorphosis for HRD practitioners increasingly becoming partners in the business tasked with aligning people, strategy and performance rather than simply promoting learning and development” (MacKenzie, Garavan and Carbery, 2012, p. 354). IHRD focuses on enhancing global effectiveness through organizational structures and systems to enable global integration and local responsiveness; this gains a further dimension, that of sustainability. Sustainability becomes part of the cultural ‘corporate glue’ (Harris, Brewster and Sparrow, 2003) needed to create a unified sense of mission around a wider vision of the organization.

GARAVAN 9781781954171 PRINT.indd 179

22/09/2017 16:31

180  Handbook of international human resource development IHRD Practice A strategic IHRD focused on sustainability needs to account for stakeholder influences, and work with stakeholders to advance sustainability goals. This entails organizational monitoring and cooperation with external agencies. HRD can position itself in a leadership role in the organization with respect to sustainability (Garavan and McGuire, 2010). The well-established literature on strategic HRD can be adopted to focus on a strategic approach to sustainability. Stakeholder analysis, organizational and environmental analysis, goal setting, partnership approaches, can all be infused with a focus on sustainability, as well as form the basis for developing green HRD strategies. Green HRD practices are enhanced by specialized and customized environmental training, linked to a focus on organizational culture and teamwork, including the development of ‘green teams’ with enhanced ability to deal with emerging issues related to sustainability (Cherian and Jacob, 2012). There is an important role for leadership development, developing leadership capacity towards sustainability alignment objectives. Development processes (mentoring, career development) should be informed by sustainability intentions, and focus on capacity building, and skill-building towards sustainability objectives (Colbert and Kurucz, 2007). Commitment from senior management is important (Cherian and Jacob, 2012). Garavan et al. (2010) note the importance of supervisory support to influence employees’ attitudes towards environmental initiatives. Attention needs to be paid to organizational-level factors such as culture and climate, structures, teamwork, senior management values and leadership. Environmental training and education and establishing a culture of employee accountability for environmental outcomes help the development of green practices (Jackson et al., 2011). The capabilities required to manage ecological outcomes of decisions need to be identified. Capabilities “include systems thinking, teamwork, critical thinking, refection, collaboration, individual self-knowledge and awareness of values” (Kramar, 2014, pp. 1074‒1075) can be reflected in competency frameworks and staff development initiatives. Learning Focus This suggests a more questioning and awareness raising focus for HRD, to align with a broader strategic HRD focus. As Neale (1997) notes, environmental innovation needs organizational learning, and enhanced capacity for engagement and collaboration with external stakeholders.

GARAVAN 9781781954171 PRINT.indd 180

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­181 Double-loop learning is necessary for critical reflection on the values, policies, principles and procedures of an organization, and innovation may require radical change such as a major change in strategic direction (Cramer, 2005). As Smith (2012, p. 6) notes “the more complex, dynamic, turbulent, and threatening the organization’s environment, the more necessary double-loop learning is considered to be”. The strategic focus for HRD is to facilitate and support a learning culture and “foster reflection, creativity, and continuous learning” (Ardichvili, 2013, p. 460). Ardichvili (2013) notes that this goes beyond awareness-raising through training and programmes, to the “development of ethical and responsible organizational cultures as a result of long-term change efforts, involving, among other things, redesigned formal and informal processes and routines” (Ardichvili, 2013, p. 459). Sustainability-focused organizational learning requires organizations to question core business practices and values. Creating opportunities for social learning and engagement with stakeholders is important (Garavan et al., 2010). The IHRD contribution focuses on developing understanding, encourages questioning, deepening knowledge of arguments for environmentalism, for example. It moves beyond a focus on the interests of the organi­za­tion, to encourage debate on the relationship of business with wider society and the environment, and practical and moral dilemmas that arise. Critique of Strategic Green IHRD Sustainable HRD presents a challenge to the IHRD business partner role, where this focuses solely on how HRD interventions contribute to business outcomes (Kramar, 2014). It highlights the moral dimensions and underpinning purposes of HRD, and recognizes that there are “ambiguities, paradoxes and dilemmas” in practice (Kramar, 2014, p. 1073). The strategic IHRD focus, however, is predominantly a functional one which prioritizes organizational efficiency and performance, an “economic-centric orientation of HRD interventions” (MacKenzie, ­ Garavan and Carbery, 2012, p. 357). SHRD has been criticized for this close alignment to market needs, resulting in a short-term focus on performance and profitability (Garavan and McGuire, 2010). MacKenzie, Garavan and Carbery (2012, p. 354) note, “the close alignment of HRD practices and interventions with organizations goals may detach HRD practitioners from their espoused values”. They argue that the business partner role of close alignment of HRD strategy with organizational strategy aimed at competitive advantage may result in exclusion of an HRD focus on environmental concerns. Short-term business pressures may

GARAVAN 9781781954171 PRINT.indd 181

22/09/2017 16:31

182  Handbook of international human resource development make it difficult for IHRD practitioners to balance diverse stakeholder demands. The concept of sustainable development is an ‘accommodation discourse’, which aims to balance the needs of the company, society and the environment. However, this notion of balance assumes no change to the overall frameworks of consumer capitalism (Newton, 2009). The accommodation approach tends to focus on the cost–benefit analysis of how greening can enhance competitiveness (Jermier and Forbes, 2003). This ecological modernization paradigm has emphasized win–win perspectives, seeking profitability and sustainability at the same time (Ahlstrom, Maquet and Richter, 2009). “Thus, sustainable development as it is now conceived is simply another business strategy that enables more growth” (Garrity, 2012, p. 2461, italics in original). In the global corporation, resources, both human and natural, “are exploited in the service of accumulation imperatives” (Jermier and Forbes, 2003, p. 161). This results in a ‘sustainability paradox’, where “our dominant approaches to wealth creation degrades both the ecological systems and the social relationships upon which their very survival depends” (Kurucz, Colbert and Marcus, 2014, p. 438). Unless the organization focuses on the wider context, ultimately (and ironically) a shareholder focus hastens the inevitability of adverse environmental conditions impacting on the ability of the organization to carry out its business. In practice shareholder expectations may not coincide with sustainability initiatives and discourage managers from taking a proactive approach to sustainability (Quairel-Lanoizelée, 2011; Garrity, 2012). Competition acts as a constraint on the social and environmental policies. The discourse of balance downplays and disguises political power, institutional influence, self-interest, stock market pressures and the drive for profit that operates on organizations (Sanders, 2012). Whilst paying attention to stakeholders, shareholder theory still operates as the predominant business model, and ecological criteria take second place to the priority of profit maximization to optimize shareholder wealth (Jermier and Forbes, 2003). These pressures are often not disclosed in company environmental reporting, which show only the positive information on CSR (Quairel-Lanoizelée, 2011).

TRANSFORMATIONAL GREEN IHRD Knowledge Constitutive Interest Emancipatory reason is concerned to develop deep understanding of structures of relations of power and domination (Willmott, 2003). The traditional growth model of competition encourages expanding consump-

GARAVAN 9781781954171 PRINT.indd 182

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­183 tion and consumerism; as argued by Shrivastava (1995) sustainability requires approaches to economic development which re-conceptualize the relationship between society and nature. This requires the development of deep understanding, questioning of underlying values and assumptions in society and organization, creation of new mental models, and deep systemic organizational change (Scully-Russ, 2012). Sustainability Conceptualization Sustainability presents wicked problems, ones where different parties may have different perspectives on both problem identification and solutions. Sadler-Smith (2015) for example highlights the difficulties with predicting the passage and impact of global warming. Tipping points may result in changes in the natural environment which are irreversible, leading to the need for humans to adapt to a new, possible disadvantageous, equilibrium. “Wicked problems suffer from a chronic lack of problem definition, the problem boundary and relation to other social issues requiring input, and unrepeatable solutions” (Castle and Culver, 2013, p. 36). Solutions cannot simply accommodate different perspectives, and need to focus on disagreements as well as areas of agreement. Some critique the notion of ‘development’ itself. Kopnina (2013) argues that modernity’s emphasis on progress subjects nature to an economic valuation, rather than other types of value, creating an imbalance between humans and the environment. Thus sustainable development is an anthropocentric notion, concerned for quality of life for current and future generations of humans, in contrast to ecocentric notions and deep green views (Hahn and Figge, 2011). Kurucz, Colbert and Marcus (2014) see this as an ethos of human domination, and argue this needs to be transformed “into one of co-evolution of human development and biospheric integrity” (p. 443). Gladwin, Kennelly and Krause (1995) however argue that an ecocentric paradigm diminishes human distinctiveness, and propose a sustaincentric rather than a sustainability paradigm, which is both people and conservation based. Stakeholder Focus A broad stakeholder focus takes in not only the stakeholders who have direct relationships with the business, but spreads out to a deeper network of relevant stakeholders. This might include representatives of the environmental movement, for example. Informal networks and alliances with community groups, trade unions and environmental activists go beyond the traditional pool of organization stakeholders, as noted by Fenwick (2007).

GARAVAN 9781781954171 PRINT.indd 183

22/09/2017 16:31

184  Handbook of international human resource development IHRD Focus From the transformational green IHRD orientation the goal is to embed sustainability into organizational and IHRD practices. Equipping people in organizations to face the complex challenges of sustainability requires a problem posing approach for HRD, which facilitates deep questioning and change. The IHRD role is to foster deep organizational learning, to support creativity, leadership and problem solving skills, the development of expertise in management of learning, surfacing implicit knowledge, and sharing best practice behaviours (Gloet, 2006). Enabling interdisciplinary and intersectoral discussion can help to expose gaps and highlight different perspectives and facilitate the development of a shared vocabulary to address wicked problems. The organizational role of IHRD professionals means that they are well placed to become sustainability leaders (Ferdig, 2007). IHRD initiatives can foster the corporate focus on sustainability, broadening the strategic frame of reference of the organization, and its conception of capability regarding sustainability. Organizational culture needs to become imbued with a sustainability focus, and values in relation to ecological sustainability need to be integrated throughout the organization. As Jermier and Forbes (2003) caution, organizations are not uniform integrated systems, where culture is identified as a consistent, organization-wide force managed by top management initiatives. There will be ambiguity as well as homogeneity within various subcultural groups. IHRD Practice Culture and leadership are seen to be central facets in enabling the development of creative business strategies for ecological sustainability. A shift towards a more sustainable orientated culture needs to focus on behaviours and attitudes; both core belief structures and core values are likely to need to be transformed (Parkes and Borland, 2012). Staff require the capabilities required to manage ecological outcomes of decisions, and these should include “systems thinking, teamwork, critical thinking, refection, collaboration, individual self-knowledge and awareness of values” (Kramar, 2014, pp. 1074‒1075). Leadership for sustainability may require new leadership styles and competencies. Hatcher (2002) for example argues that sustainability leadership needs a shift from transactional to transformational, ethical and values-based leadership. IHRD needs to seek stakeholder involvement in the development of reflective leaders who exhibit critical and creative thinking and partnership working, and focus on the long-term (Williams and Turnbull, 2015). Sustainability requires

GARAVAN 9781781954171 PRINT.indd 184

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­185 leadership capabilities to support learning across boundaries and create new networks, and bridges between different communities or islands of knowledge (Clarke and Roome, 1999). Ranciere (in Gershon, 2012) notes that efforts to gain consensus between parties usually seek to integrate views from different parties and limit polarization, but that this results in narrowing of perspectives and abandoning different options. He proposes a perspective of dissensus to allow “the possibility for inclusion of multiple even contrary ­perspectives. . .without the need to reduce discussion to only those with whom one’s perspective resonates” (Gershon, 2012, p. 367). As Castle and Culver (2013) argue, efforts to gain consensus often fail to address deep disputes about knowledge values and policy goals. They note “policy problems of great social significance and of large scale and complexity typically defy easy expression” (Castle and Culver, 2013, p. 35). They introduce a method of contested exchange as a model in policy-making, which focuses on multiple and marginalized perspectives, enriched by multidisciplinary frames of reference. Learning Focus In seeking sustainability, learning is central to address problems involving the interaction of ecological, social and economic systems, high levels of uncertainty and long time horizons (Siebenhuner and Arnold, 2007). This requires deutero learning – “an improvement in organizational learning processes themselves” (Cramer, 2005, p. 255). Learning is required at individual, group and organization levels (Gloet, 2006). There is a need to foster multi-level thinking, involving collaboration across traditional, professional and functional boundaries, and linking link local, regional and global perspectives (Siebenhuner and Arnold, 2007). Learning processes need to support the development of shared understandings and “transdisciplinary synthesis of perspectives” (Castle and Culver, 2013, p. 39). Interdisciplinary and intersectoral discussion can expose gaps, highlight different perspectives and help to develop a shared vocabulary. Ardichvili and Kuchinke (2002) argue for the need to create interpretive spaces for mutual meaning making through collaborative learning. They advocate using appreciative enquiry and perspective-taking in crosscultural settings to involve different actors holding competing definitions of a problem. This approach seeks to promote mutual learning and understanding across cultural contexts. Gloet (2006) discusses boundary-spanning learning, arguing that “know­ ledge of sustainability highlights the need for new knowledge, the new ways of managing knowledge and for new work practices to support this

GARAVAN 9781781954171 PRINT.indd 185

22/09/2017 16:31

186  Handbook of international human resource development process” (Gloet, 2006, p. 403). This includes a willingness to engage in alliances with other firms and/or environmental groups and NGOs (Neale, 1997). This could foster the creation of networks which connect staff with external stakeholders, as suggested by Fenwick (2007). Clarke and Roome (1999) promote “learning action networks. . .a set of relationships which lay over and complement formal organizational structures linking individuals together by the flow of knowledge, information and ideas” (Clarke and Roome, 1999, p. 297). These are supported by network-like structures and bridges “involves learning and action by many people in the company and by many people and organizations in the company’s ‘stakeholder field’” (Clarke and Roome, 1999, p. 307). Collaborative social learning can help to build resilience and develop adaptive capacity. Triple loop learning sets learning within the social and political context (McCarthy et al., 2011). The approach of problematization involves identifying and challenging the assumptions underlying existing theories (Alvesson and Sandberg, 2011). IHRD professionals can encourage reflexive learning, in which staff ‘learn to question and challenge everyday practices or social arrangements by discussing with others the extent to which they can be justified’ and challenge “rules of debate, argument assessment, and decisionmaking processes that the dominant culture favours” (Brookfield, 2005, pp. 249‒250). Problem-posing education, as advocated by Freire (1972), should encourage questioning, the development of critical understanding of a “moving and changing” material reality (Allman, 1988, p. 96). The role for the IHRD professionals is one of seeking relevant resources (literature, case studies, invited speakers), posing challenging questions and facilitating dialogue. They should work in collaboration with learners “to create a more complex way of understanding” (Allman, 1988, p. 97). Critique of Transformational Green IHRD As Baek and Kim (2014, p. 501) argue, the triple bottom line “indicates a paradigm shift in HRD’s philosophy from one of narrow, business focused interests to a broader, planet focused approach”. The notion of transformational green IHRD is a call to reposition IHRD. A particular feature is a rethinking of the close alignment of IHRD with business interests, as in strategic IHRD. Commenting on the HRD contribution to the recent financial crisis, MacKenzie, Garavan and Carbery (2012) argue that the performance orientation of HRD resulted in a coupling of HRD with misaligned social objectives in many financial organizations, leading to dire consequences. They note that “the irony is that in the push to think, act and positioned strategically, HRD arguably has lost its ability to critically

GARAVAN 9781781954171 PRINT.indd 186

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­187 reflect and see beyond the next financial quarter” (MacKenzie, Garavan and Carbery, 2012, pp. 357‒358). To avoid this happening, HRD needs to engage in ‘strategic decoupling’. This will enable it to develop a necessary distance, from which it must engage in critical reflection on organizational values and actions. This can contribute to “the development of human intellectual capital that is ethically cognizant, organizationally aware and socially responsible” (MacKenzie, Garavan and Carbery, 2012, p. 359). This argument for strategic decoupling can equally be applied to the development of green IHRD. A core function of green IHRD is that of helping organizations engage in transformational change (Sadler-Smith, 2015). Gubbins and Garavan (2009) note the need for HRD professionals to develop global mindsets, arguing that HRD has moved from an activity based to a results based role, from transactional to transformational. Social capital and social networking competency are also increasingly important in the HRD role; in what they term “the transformational HRD professional” (Gubbins and Garavan, 2009, p. 265). The transformational green IHRD orientation ostensibly presents the most challenges to IHRD ‘business as usual’. But it also presents an opportunity for IHRD to get ahead of the game and position itself to make a meaningful contribution to organization practices of sustainability. The focus on deep learning and reflection, critical thinking, collaboration, stakeholder engagement and boundary-spanning learning, together with an emphasis on organizational culture change and the development of sustainability-focused leadership, provide openings for organizations to address sustainability in more meaningful ways. Some organizations may embrace the opportunities provided by these approaches. Others may be reluctant or even hostile. What cannot be in doubt is that at various points in the future all organizations will need to adapt.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE IHRD focus on sustainability involves learning and development interventions to facilitate individual learning and the encouragement of an organ­ izational culture that prioritizes sustainability. The HRD implications of sustainability in the different countries of operation of global businesses need to be ascertained, particularly through strategies to facilitate greater shared sustainability learning between the various companies and countries that might be involved, either as members of a global corporation or as stakeholders of an international business. Learning interventions can

GARAVAN 9781781954171 PRINT.indd 187

22/09/2017 16:31

188  Handbook of international human resource development aim to increase intercultural awareness regarding sustainability, and serve to strengthen the corporate glue with a sustainability focus (Walton 1999). Haddock et al. (2010) note three aspects to green HRD, which has a useful strategic focus, as it proposes analysis, planning and supporting: mapping – identifying where the organization and HRD currently stands regarding green practices; nurturing – stimulating new possibilities; and nourishing – sustaining change and generating future action. This approach could form a basis for a planning framework for green IHRD, along with Garavan and McGuire’s (2010) levels of foundation, traction, and integration. A strategic HRD contribution to sustainability includes a strategic planning process – policies, strategies, and action plans, monitoring and reporting, and learning and culture change programmes to develop organizational resilience (Neale, 1997). As a starting point there could be a strategic analysis process of organizational and environmental analysis (a green SWOT and PESTLE analysis, stakeholder analysis, cultural analysis, and so on). This would assess the organization’s TBL sustainability focus, and leadership sustainability competencies. It could incorporate a sustainability learning and training needs analysis. It would involve assessing the particular IHRD structure and strategy for HR/D, according to the stage of internationalization of the business. IHRD strategies of firms are influenced by context, including national, sectoral and organizational factors (Boxall and Purcell 2000). IHRD needs to be cognisant of the stage of development of HRD which varies from country to country (Wang and McLean, 2007). Factors such as national culture, national institutions, industry sectors and the wider business environment which impact on firms (Garavan and Carbery, 2012) must be taken into account in developing an IHRD focus on sustainability. As McGuire (2014) argues, the internationalization process is a complex, multi-stage and evolving process, organizations will take different approaches at any one time, stakeholders will vary, and the role and actors in IHRD will vary. For example, McGuire (2014) presents a framework describing four phases of internationalization – multi-domestic, international, multinational and transnational – and outlining structural issues, cultural issues, and the HRD priorities under each phase. The green IHRD conceptual framework provides a basis for reflection on the analysis, and consideration of the nature and scope of potential IHRD interventions to support organizational learning regarding sustainability. This needs to be contextualized within the particular business, countries of operation, and organizational structures and processes. It is likely that the most common scenario identified initially will be somewhere between a tactical and strategic focus on sustainability. The goal of IHRD will be to consolidate training for sustainability as noted under the

GARAVAN 9781781954171 PRINT.indd 188

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­189 tactical green IHRD mode, and move towards a strategic focus for green IHRD. It can then start to incorporate some of the ideas for transformational learning that are listed under transformational green IHRD, to help the organization develop deeper learning processes. There will be tensions between short and longer term goals, and a blend of IHRD practices will be needed, particularly ones that are dynamic and responsive (Boxall and Purcell 2000). With regard to implications for green IHRD research, there is a pressing need for more research in this domain. Conceptual research would be useful to help guide future research and practice. This might usefully build further on the research into green HRD generally, which this chapter has aimed to do. This would involve further mapping of IHRD frameworks and models onto green HRD and building on conceptual frameworks of green HRD and IHRD. Research is not value-neutral. The three knowledge constitutive interests incorporated into the green IHRD conceptual framework in this chapter highlights differing assumptions that underpin IHRD research, and will lead to different research foci and practices. Research from a tactical green IHRD perspective could be useful in providing descriptive/ analytical insights into green HRD practices. This could include examining how organizations are starting out on introducing a green perspective to IHRD, and explanation and analysis of training and development interventions informed by sustainability concerns. A technical-rationalist approach to research limits the potential for ethical considerations regarding the object of study (Alvesson and Willmott 2012) (although it may well comply with ethical guidelines for research practice – it is not in this sense intrinsically unethical). A strategic green IHRD focus informing research could focus on a range of aspects, such as: emerging best practices in green IHRD; analyzing the application of SHRD to incorporate a sustainability focus to IHRD; how organizations engage with stakeholders to address green issues in an international context; how learning for and about sustainability is carried out in different organizational contexts; international comparative perspectives on green IHRD. A transformative-informed green IHRD research opens the door for exploratory, interdisciplinary studies. This must challenge conventional wisdom, explore alternatives, involve a wide range of stakeholders, especially those marginalized or ignored, examine ways in which IHRD practices can provide spaces for reflection, collaborative learning and creativity. Alvesson and Skoldberg (2009) distinguish between ‘data-driven’ and ‘insight-driven’ research, of which there is need for both in green IHRD. Empirically-based research informed by emancipatory reason is

GARAVAN 9781781954171 PRINT.indd 189

22/09/2017 16:31

190  Handbook of international human resource development reflexive and recognizes “that ‘data’ are not regarded as ‘raw’ but as a construction of the empirical conditions, imbued with consistent interpretive work” (Alvesson and Skoldberg, 2009, pp. 283‒284). Insight-driven research pays more attention to the interpretive processes. Research approaches can be informed by dissensus, seeking to draw out competing perspectives. Problematization in research involves identification and challenge of assumptions underlying existing theories, to help to generate novel research questions, as an alternative to the common approach of seeking gaps in current research (Alvesson and Sandberg, 2011).

CONCLUSION Developing an approach to green IHRD is not an optional choice for IHRD – sustainability is an increasingly important issue for organizations and for societies. To date there has been little literature exploring green IHRD. Whilst there may be some innovative if little documented practice, IHRD has generally been slow to grasp the mantle of sustainability. Developing green IHRD theory and practice presents both challenges and opportunities to IHRD. A particular challenge is to the strategic business partner role of IHRD, which has aligned HRD too closely with the interests of the organization rather than the environment. Developing sustainable practice presents multiple challenges to organizations, and these will be reflected as challenges for developing green IHRD. However, if IHRD does not engage more actively in the sustainability agenda, it risks becoming marginalized and less relevant to organizational concerns and practices. Green IHRD presents an opportunity for IHRD to build on its strengths in supporting individual and organizational development, learning and change. IHRD is well placed to take a leadership role in sustainability, with its expertise in sustaining learning. Not only will this ensure greater organizational relevance for IHRD, it will also help to address the ethical tensions inherent in the HRD profession and in practice, reflected (simplistically but strikingly) in the ‘people versus performance’ or ‘organization versus environment’ dichotomies. The conceptual framework and discussion presented in this chapter provides some pointers for positioning and developing green IHRD practice and research. The arguments presented here suggest that research and practice within a framework of technical reason is insufficient to address the complex challenges to IHRD presented by sustainability. Practical reason can provide useful pointers for development of theory and practice in green IHRD. But IHRD can make a particular contribution if practice

GARAVAN 9781781954171 PRINT.indd 190

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­191 and research is informed by emancipatory reason and the promotion and support of collaborative and critical learning processes.

REFERENCES Ahlstrom, J., Maquet, M. and Richter, U. (2009), ‘The lack of a critical perspective in environmental management research: distortion in the scientific discourse’, Business Strategy and the Environment, 18(5), 334‒346. Allman, P. (1988), ‘Gramsci, Freire and Illich: Their contributions to education for socialism’, in Tom Lovett (ed.), Radical Approaches to Adult Education: A Reader, New York: Routledge, pp. 85‒113. Alvesson, M. and Sandberg, J. (2011), ‘Generating research questions through problematization’, Academy of Management Review, 36(2), 247–271. Alvesson, M. and Skoldberg, K. (2009), Reflexive Methodology: New Vistas for Qualitative Research (2nd edition), London: Sage Publications. Alvesson, M. and Willmott, H. (2012), Making Sense of Management: A Critical Introduction (2nd edition). London: Sage Publications. Anderson, V. (2015),’International HRD and offshore outsourcing: A conceptual review and research agenda’, Human Resource Development Review, 14(3), 259‒278. Ardichvili, A. (2013), ‘The role of HRD in CSR, sustainability, and ethics: A relational model’, Human Resource Development Review, 12(4), 456–473. Ardichvili, A. and Kuchinke, P.K (2002), ‘The concept of culture in international and comparative HRD research: Methodological problems and possible solutions’, Human Resource Development Review, 1(2), 145‒188. Baek, P. and Kim, N. (2014), ‘Exploring the theoretical foundation for HRD in society: Towards the model of stakeholder-based HRD’, Human Resource Development International, 17(5), 499‒513. Boxall, P. and Purcell, J. (2000), ‘Strategic human resource management: Where have we come from and where should we be going?’, International Journal of Management Reviews, 2(2), 183‒203. Brookfield, S.D. (2005), The Power of Critical Theory for Adult Learning and Teaching, New York: Open University Press. Carrington, D. (2016), ‘Climate change will blow a $2.5tn. holes in global financial assets, study warns’, The Guardian, Monday 4 April. Castle, D. and Culver, K. (2013), ‘Getting to “No”: The method of contested exchange’, Science and Public Policy, 40(1), 34–42. Cherian, J. and Jacob, J. (2012), ‘A study of green HR practices and its effective implementation in the organization: A review’, International Journal of Business and Management, 7(21). Clarke, S. and Roome, N. (1999), ‘Sustainable business: Learning-action networks as organ­ izational asset’, Business Strategy and the Environment, 8(5), 296‒310. Clegg, S., Kornberger, M. and Pitsis, T. (2008), Managing and Organization, London: Sage Publications. Colbert, B.A. and Kurucz, E.C. (2007), ‘Three conceptions of Triple Bottom Line business sustainability and the role for HRM’, Human Resource Planning, 30(1), 21‒29. Cramer, J. (2005), ‘Company learning about corporate social responsibility’, Business Strategy and the Environment, 14(4), 255‒266. Elkington, J. (2004), ‘Enter the triple bottom line’, in A. Henriques and J. Richardson (eds), The Triple Bottom Line: Does It All Add Up? London: Earthscan, pp.1‒16. Fenwick, T. (2007), ‘Developing organizational practices of ecological sustainability: A learning perspective’, Leadership and Organization Development Journal, 28(7), 632‒645. Fenwick, T. and Bierema, L. (2008), ‘Corporate social responsibility: Issues for human

GARAVAN 9781781954171 PRINT.indd 191

22/09/2017 16:31

192  Handbook of international human resource development resource development professionals’, International Journal of Training and Development, 12(1), 24–35. Ferdig, M.A. (2007), ‘Sustainability leadership: Co-creating a sustainable future’, Journal of Change Management, 7(1), 25‒35. Freire, P. (1972), Pedagogy of the Oppressed, Harmondsworth: Penguin Books. Garavan, T.N. and Carbery, R. (2012), ‘A review of international HRD: Incorporating a global HRD construct’, European Journal of Training and Development, 36(2/3), 129‒157. Garavan, T.N. and McGuire, D. (2010), ‘Human resource development and society: Human resource development role in embedding corporate social responsibility, sustainability, and ethics in organizations’, Advances in Developing Human Resources, 12(5), 487‒507. Garavan, T.N., Heraty, N, Rock, A. and Dalton, E. (2010), ‘Conceptualizing the behavioural barriers CSR and CS in the organizations: A typology of HRD interventions’, Advances in Developing Human Resources, 12(5), 586‒613. Garrity, E.J. (2012), ‘Tragedy of the commons, business growth and the fundamental sustainability problem’, Sustainability, 4(12), 2443–2471. Gershon, W.S. (2012), ‘Troubling notions of risk: Dissensus, dissonance, and making sense of students and learning’, Critical Studies in Education, 53(3), 361–373. Gladwin, T.N., Kennelly, J.J. and Krause, T.S. (1995), ‘Shifting paradigms for sustainable development: Implications for management theory and research’, Academy of Management Review, 20(4), 874‒907. Gloet, M. (2006), ‘Knowledge management and the links to HR’, Management Research News, 29(7), 402–413. Gubbins, C. and Garavan, T.N. (2009), ‘Understanding the HRD role in MNCs: The imperatives of social capital and networking’, Human Resource Development Review, 8(2), 245‒275. Habermas, J. (1972), Knowledge and Human Interest, London: Heinemann. Haddock, J., Jeffrey, J., Miles, D., Muller-Camen, M. and Hartog, M. (2010), ‘Green HRD: The potential contribution of HRD concepts and theories to environmental management’, Paper presented at 11th International conference on HRD Research and Practice across Europe, Pecs, Hungary. Hahn, T. and Figge, F. (2011), ‘Beyond the bounded instrumentality in current corporate sustainability research: Toward an inclusive notion of profitability’, Journal of Business Ethics, 104(3), 325–345. Harris, C. and Tregidga, H. (2012), ‘HR managers and environmental sustainability: Strategic leaders or passive observers?’, The International Journal of Human Resource Management, 23(2), 236‒254. Harris, H., Brewster, C. and Sparrow, P. (2003), International Human Resource Management, London: CIPD. Hatcher, T. (2002), Ethics and HRD, Cambridge MA: Basic Books. Jackson, S.E., Renwick, D.W.S., Jabbour, C.J.C. and Muller-Camen, M. (2011), Stateof-the-art and future directions for green human resource management: Introduction to special issue, Zitschrift fur Personalforschung, 25(2), 99‒116. Jermier, J.M. and Forbes, L.C. (2003), ‘Greening organizations: Critical issues’, in M.  Alvesson and H. Willmott (eds), Studying Management Critically, London: Sage Publications, pp. 157‒176. Kopnina, H. (2013), Forsaking nature? Contesting ‘biodiversity’ through competing discourses of sustainability. Journal of Education for Sustainable Development, 7(1), 51–63. Kramar, R. (2014), ‘Beyond strategic human resource management: Is sustainable human resource management the next approach?’ The International Journal of Human Resource Management, 25(8), 1069‒1089. Kurucz, E.C., Colbert, B.A. and Marcus, J. (2014), ‘Sustainability as a provocation to rethink management education: Building a progressive educative practice’, Management Learning, 45(4), 437–457. Lockwood, N.R. (2004), ‘Corporate social responsibility: HR’s leadership role’, Society for Human Resource Management Research Quarterly, 49(2), 1‒10.

GARAVAN 9781781954171 PRINT.indd 192

22/09/2017 16:31

Green IHRD, sustainability and environmental issues  ­193 MacKenzie, C.A., Garavan, T.N. and Carbery, R. (2012), ‘Through the looking glass: Challenges for human resource development (HRD) post the global financial crisis – business as usual?’, Human Resource Development International, 15(3), 353‒364. Mankin, D. (2009), Human Resource Development, Oxford: Oxford University Press. McCarthy, D.D.P., Crandall, D.D., Whitelaw, G.S., General, Z. and Truji, L.J.S. (2011), ‘A critical systems approach to social learning: Building adaptive capacity in social, ecological, epistemological (SEE) systems’, Ecology and Society, 16(3), 18. McCracken, M. and Wallace, M. (2000), ‘Towards a re-definition of strategic HRD’, Journal of European Industrial Training, 24(5), 281. McGuire, D. (2014), Human resource development (2nd edition), London: Sage Publications. Neale A. (1997), ‘Organizational learning in contested environments: Lessons from Brent Spar’, Business Strategy and Environment, 6(2), 93‒103. Newton, T. (2009), ‘Organizations and the natural environment’, in M. Alvesson, T. Parkes, C. and Borland, H. (2012), ‘Strategic HRM: Transforming its responsibilities toward ecological sustainability – the greatest global challenge facing organizations’, Thunderbird International Business Review, 54(6), 811‒824. Quairel-Lanoizelée, F. (2011), ‘Are competition and corporate social responsibility compatible?’, Society and Business Review, 6(1), 77–98. Renwick, D. and Redman, T. and Maguire, S. (2012), ‘Green human resource management: a review and research agenda’, International Journal of Management Reviews, 15(1), 1‒14. Rimanoczy, I. and Pearson, T. (2010), ‘Role of HR in the new world of sustainability’, Industrial and Commercial Training, 42(1), 11–17. Sadler-Smith, E. (2015), ‘Communicating climate change risk and enabling pro-­environmental behavioral change through human resource development’, Advances in Developing Human Resources, 17(4), 442‒459. Sanders, P. (2012), ‘Is CSR cognizant of the conflictuality of globalisation? A realist critique’, Critical Perspectives on International Business, 8(2), 157–177. Schramm, J. (2008), ‘Sustainable strategy’, HR Magazine, September. Scully-Russ, E. (2012), ‘Human resource development and sustainability: Beyond sustainable organizations’, Human Resource Development International, 15(4), 399–415. Scully-Russ. E. (2015), ‘The contours of green human resource development’, Advances in Developing Human Resources, 17(4) 411‒425. Shrivastava, P. (1995), ‘The role of corporations in achieving ecological sustainability’, Academy of Management Review, 20(4), 936‒960. Siebenhuner, B. and Arnold, M. (2007), ‘Organizational learning to manage sustainable development’, Business Strategy and the Environment, 16(5), 339‒353. Simon, H.A. (1991), ‘Bounded rationality and organizational learning’, Organization Science, 2(1), 125‒134. Smith, P. (2012), ‘The importance of organizational learning for organizational sustainability’, The Learning Organization, 19(1), 4‒10. Valentin, C. (2015), ‘Greening HRD: Conceptualizing the triple bottom line for HRD practice, teaching, and research’, Advances in Developing Human Resources, 17(4), 1‒16. Walton, J. (1999), Strategic Human Resource Development, Harlow: Pearson Education. Wang, X. and McLean, G.N. (2007), ‘The dilemma of defining international human research development’, Human Resource Development Review, 6(1) 96‒108. Williams, S. and Turnbull, S. (2015), ‘Developing the next generation greatly responsible leaders: Generation Y perspectives and the implications for green HRD’, Advances in Developing Human Resources, 17(4), 504‒521. Willmott, H. (2003), ‘Organization theory as critical science? Forms of analysis and new organizational forms’ in H. Tsoukas and C. Knudsen (eds), The Oxford Handbook of Organization Theory, Oxford: Oxford University Press, pp.1‒36.

GARAVAN 9781781954171 PRINT.indd 193

22/09/2017 16:31

9. IHRD and managing knowledge Alexandre Ardichvili

INTRODUCTION According to the knowledge-based view of the firm, knowledge is the most valuable asset of modern organizations and the main source of their competitive advantage (Davenport and Prusak, 1998; DeNisi, Hitt and Jackson, 2003). As De Long and Fahey (2000, p. 113) put it, “creating, organizing, and using knowledge assets are the essence of what firms do”. IHRD plays a major role in helping businesses create, share, and utilize knowledge on organizational, group, and individual levels (Ardichvili, 2001; Gourley, 2001). In today’s global business environment, cross-border and cross-cultural knowledge management is one of the most important enablers of organ­ izational competitiveness and long-term success. There are numerous domains of international and cross-cultural business where knowledge management is playing a key role. First, most large business organizations (and, increasingly, start-ups and smaller entrepreneurial ventures) are involved in international joint ventures, outsourcing, mergers and acquisitions, or are setting up production and/or distribution operations in other countries. All these modes of international operation require management of transfer of various types of knowledge, including management and leadership skills, technical skills and know-how, and procedural and operational knowledge. International HRD experts can play a key role in these transfer processes in a variety of ways, which may include designing, delivering, and/or facilitating soft and hard skills training, managing change initiatives, and facilitating career development and transition for long-term expatriates and temporary international transfer assignees. Furthermore, due to the increasingly virtual and distributed nature of organizational work, numerous members of research, product development, and production and service teams are working remotely from multiple locations in different countries. New knowledge is being created routinely as part of such collaborative efforts. This implies that in addition to knowledge transfer from one location to another, knowledge sharing and knowledge co-creation in distributed work environments are becoming crucially important factors in improving organizational performance. IHRD professionals can support knowledge creation and sharing in glob194

GARAVAN 9781781954171 PRINT.indd 194

22/09/2017 16:31

IHRD and managing knowledge  ­195 ally distributed work processes in numerous ways: by facilitating team formation and development and providing teamwork training for members of virtual teams; by developing leaders, capable of organizing and leading virtual teams of employees; and by providing organizational and technology support of knowledge sharing through globally distributed commun­ ities of practice. The goal of this chapter is to explore the role of IHRD in cross-border and cross-cultural knowledge management processes. The chapter starts with a discussion of how organizations develop and transfer their know­ ledge assets. We will explore two main streams of literature that are based on two different views of organizational knowledge and learning: the knowledge transfer and the knowledge sharing paradigm. Next, we will discuss how organizational knowledge is created, transferred, and shared in international and cross-cultural contexts. Finally, we will consider challenges and opportunities for IHRD, presented by the complex task of managing knowledge in global and international settings.

KNOWLEDGE TRANSFER AND KNOWLEDGE SHARING Davenport and Prusak (1998) defined knowledge as a “Fluid mix of framed experiences, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information. It originates and is applied in the minds of knowers. In organizations, it often becomes imbedded not only in documents or repositories but also in organizational routines, processes, practices, and norms” (Davenport and Prusak, 1998, p. 5). For De Long and Fahey (2000), knowledge is a resource, “embedded in a routine or process”; it is possessed by either an individual, or a group, a collective. And it is “embodied in language, stories, concepts, rules, and tools, know­ ledge results in an increasing capacity for decision making and action. . .” (De Long and Fahey, 2000, p. 114). The above quotes suggest that knowledge is viewed as a resource that can be created, stored, transferred, and utilized for productive purposes (Winter, 1987). Knowledge can reside in individuals or in groups. It is made explicit in organizational documentation and manifests itself in procedures and routines. A large portion of organizational knowledge is tacit and imbedded in individuals who often find it hard to articulate what they know. The logic of the knowledge-based view of the firm leads to the emphasis on ways this resource is transferred and utilized. Under this paradigm, the major goal of knowledge management (KM) and HRD

GARAVAN 9781781954171 PRINT.indd 195

22/09/2017 16:31

196  Handbook of international human resource development professionals is to help individuals and groups transform tacit knowledge into explicit knowledge, and then store it in databases and documentation, making it available for transfer to others in the organization and/or beyond its boundaries. Issues of knowledge transfer are among the most often discussed and researched topics in the KM and IHRD literature. Easterby-Smith, Lyles and Tsang (2008) define knowledge transfer as “an event through which one organization learns from the experience of another”. They point out that such transfer is a complex phenomenon and underscore that “successful transfer is often not easy to achieve” (Easterby-Smith, Lyles and Tsang, 2008, p. 677). Chances of successful transfer progressively decrease as attempts are made to transfer knowledge within the same organization, between organizations in the same country or culture, and across national and cultural boundaries. One of the main reasons for this decline in rates of success is the added complexity, introduced by multiple layers of culture: differences in professional and organizational subcultures of divisions of the same company are already important obstacles to knowledge transfer; adding to this national or ethnic culture differences makes the task of knowledge transfer even more complicated. The view of knowledge as a transferrable asset is grounded in the empiricist tradition of philosophy that treats knowledge as entities or “mental representations in people’s heads, that correspond to other real entities located in the pre-given external world” (Gourley, 2001, p. 32). The empiricist perspective leads to a focus on generation, codification, and transmission of explicit knowledge. Knowledge transfer becomes the main focus of KM under this perspective. HRD practices that can be used to manage knowledge transfer under this approach are mostly associated with formal and informal training (Ardichvili, 2001). Gourley (2001) points out that another perspective, stemming from Cartesian rationalism, views knowledge as constructed by human minds according to rational criteria. A more recent theory, that shares rationalism’s assumptions, is autopoiesis (Venzin, von Krogh and Roos, 1998). It suggests that knowledge is embodied in individuals and cannot be separated from them. An implication of this theory is that “knowledge itself cannot be managed – only the conditions under which it exists can be influenced” (Gourley, p. 34). Unlike empiricism, the rationalist perspective on KM acknowledges that much knowledge is tacit and difficult to articulate and codify. HRD practices, associated with this perspective, are OD interventions, aimed at building the culture of knowledge sharing, development and ongoing support of communities of practice (CoPs), promotion of organizational learning, and the creation of learning organizations.

GARAVAN 9781781954171 PRINT.indd 196

22/09/2017 16:31

IHRD and managing knowledge  ­197 The rationalist and empiricist perspectives ignore the fact that much of organizational knowledge is socially constructed in complex interactions among multiple organizational players. An alternative to these approaches, identified by Gourley (2001), is the situated learning and activity theory perspective that views organizational knowledge as a product of work activities. Under this view, knowledge representations acquire meaning through action and knowledge is useful only when applied in situated activities; knowledge (noun) is replaced by knowing (verb) (Cook and Brown, 1999), and is described as a product of collective practice (Gherardi, 2001). This perspective stresses the importance of such HRD approaches, as on-the-job training, support for informal and incidental learning, mentoring, and apprenticeships.

INTERNATIONAL AND CROSS-BORDER KNOWLEDGE TRANSFER The business world is becoming increasingly characterized by cross-cultural, cross-organizational, and cross-border transactions and collaboration. Therefore, it is not surprising that issues of international knowledge transfer are prominent in the KM literature. KM and IHRD scholars and practitioners are asking how to transfer knowledge to subsidiaries in MNCs (Pérez-Nordtvedt et al., 2008); how to transfer knowledge, available in subsidiaries, to parent organizations and headquarters (Asmussen, Foss and Pedersen, 2013); how to transfer knowledge between countries in international development and educational collaboration projects (Kanu, 2005); how to transfer knowledge between organizations, involved in mergers and acquisitions (Kongpichayanond, 2009); how to transfer management know-how internationally (Michailova and Hollinshead, 2009); and how to manage the transfer of knowledge between members of globally distributed and multicultural teams. Duan, Nie, and Coakes (2010) pointed out that transnational knowledge transfer can happen in MNCs, international joint ventures, and in various types of international projects, sponsored by governments, United Nations and its affiliated organizations, and other international, national, and local organizations whose mission is to help people in developing countries. The international knowledge transfer literature focuses largely on two key issues: cultural and institutional barriers or enablers of know­ledge transfer (Boh, Nguyen and Xu, 2013; Kostova, 1999), and various strategies for increasing the success of transfer (Pérez-Nordtvedt et al., 2008; Ruisala and Suutari, 2004). Bhagat et al. (2002) discussed cultural variations in knowledge transfer, indicating that culture’s levels of ­individualism

GARAVAN 9781781954171 PRINT.indd 197

22/09/2017 16:31

198  Handbook of international human resource development or ­collectivism affect the effectiveness of transfer of various types of know­ ledge. Boh, Nguyen and Xu (2013) studied factors that impacted knowledge transfer from a Norwegian parent corporation to its subsidiaries located in Vietnam. They found that subsidiary employees’ belief in trustworthiness of the headquarters and their openness to diversity were significant factors in facilitating employees’ learning and knowledge acquisition from the parent organization. Interestingly, cultural value differences or similarities appeared not to make any difference in transfer success. Javidan et al. (2005) applied the GLOBE model of cultural dimensions to the case of international knowledge transfer between a North European and a South Asian organization, and found that cultural differences determine the effectiveness of transfer for a number of reasons. Specifically, they found that culture shapes perceptions of the value of transferred knowledge, thus determining whether or not the recipient will be willing to invest more or less effort in acquiring and absorbing the knowledge; ingroup or out-group orientation has a significant influence on motivation to transfer (strong in-group orientation leads to focus on transfer to the in-group members only and the lack of attention to the out-group’s know­ ledge needs); and culture determines which communication channels will be favoured, thus creating problems with communication effectiveness. Ruisala and Suutari (2004) discussed the use of expatriate assignments as a mean of international knowledge transfer. Their study suggested that expatriates transfer not only specific technical know-how but, most importantly, cultural knowledge and management know-how. It was also recognized that expatriates facilitate transfer in both directions: not only from the headquarters to the subsidiaries, but also from subsidiaries to the parent organization. Van Wijk, Jansen and Lyles (2008) found that in intra-organizational knowledge transfer cultural distance presents serious barriers to such transfer. Interestingly, cultural distance did not seem to matter in inter-organizational transfer of knowledge. Duan, Nie and Coakes (2010) carried out a literature review that described three groups of factors affecting knowledge transfer: Actors, Context, and Content. Characteristics of Actors that contributed positively to knowledge transfer included openness to new experiences and information, relevant prior experience, trust, motivation, and leadership support. At the Context level differences in absorptive capacity have been found to hinder knowledge transfer in many cases. Other contextual factors affecting transfer were relationships between organizational players, level of social capital, physical distance, and organizational infrastructure in support of knowledge transfer. Finally, Content of knowledge to be transferred did not seem to influence the rate and effectiveness of transfer (except for one component of this group of factors – Objectives and Focus of the transfer effort).

GARAVAN 9781781954171 PRINT.indd 198

22/09/2017 16:31

IHRD and managing knowledge  ­199 Knowledge Brokering in International Knowledge Transfer An important stream of knowledge transfer literature is dealing with knowledge brokering. Knowledge brokering is defined as “a specific phenomenon within the wider knowledge mobilization literature, defined as getting the right knowledge, into the right hands, at the right time” (Currie, Burgess and Hayton, 2015, p. 793). Discussing examples of knowledge brokering in hospital settings, Currie, Burgess and Hayton (2015, p. 794) described knowledge brokering roles of middle managers, who act as mediators, “capable of working through sets of ideas belonging to management and those belonging to clinical practice”. In the contexts of international knowledge transfer, such brokering roles are played by expatriate managers and professionals. Harzing, Pudelko and Reiche (2015), in their study of more than 800 subsidiaries of MNCs in 13 countries, documented the mediating and brokerage role of various categories of expatriates. Harzing, Pudelko and Reiche (2015) argued that international assignees engage in two types of knowledge transfer. The first is the direct transfer, when they share knowledge about culture or procedures of headquarters with their host country co-workers, or bring knowledge from the host country subsidiary to the headquarters. The second type, indirect transfer, occurs when expatriates act as brokers in the process of creating shared social capital among home- and hostcountry nationals. Being capable of understanding values, meanings, and language of both home- and host-country employees, expatriate brokers facilitate the cross-unit transfer and increase units’ absorptive capacity (defined as the ability not only to recognize the value of the transferred knowledge, but also to apply it productively) (Harzing, Pudelko and Reiche, 2015, p. 3). Based on the results of their study, Harzing, Pudelko and Reiche concluded that expatriates are more effective brokers when transferring knowledge from headquarters to subsidiaries, and less effective in transferring knowledge back to headquarters.

KNOWLEDGE CREATION AND KNOWLEDGE SHARING Thomas Wolfe (quoted in Harman and Brelade, 2000, p. 2), described knowledge in the following way: “It is finding out something for oneself with pain, with joy, with exultancy with labour and with all the little ticking breathing moments of our lives until it is ours”. This view of knowledge is fundamentally different from the resource-based view. It assumes that knowledge is not an object that can be packaged, stored, shipped, and then

GARAVAN 9781781954171 PRINT.indd 199

22/09/2017 16:31

200  Handbook of international human resource development “unpacked” by a recipient. Rather, knowledge is developed as a result of long practice, of trial-and-error, of making mistakes and experiencing not only successes, but also failures. Tsoukas and Mylonopoulos (2004) asserted that knowledge cannot be viewed as discrete chunks of information to be transferred; it has to be developed by doing; and it is constructed in social interaction. Furthermore, issues of power and of privileging of certain types of knowledge over others always need to be considered. Thus, under the social constructionist view of knowledge, personal experiences and sharing of these experiences become central to knowledge generation and use. For scholars who eschew the transfer paradigm, knowledge is always situated and generated in specific cultures and organizational systems (Gourley, 2001). As noted by Holden (2001, p. 159), “if the context changes (e.g., culture), knowledge also changes”. Furthermore, “it might be helpful if [researchers] begin to understand culture as infinitely overlapping and perpetually redistributable habitats of common knowledge and shared meanings” (Holden, 2001, p. 162). Holden called for a new view of culture and knowledge, in which we will “contemplate culture as a form of know­ ledge and from there to treat the culture as an organizational resource and accordingly as an object of knowledge management” (Holden, 2001, p. 162), promoting collaboration and cross-cultural learning. Knowledge Creation and Communities of Practice When knowledge is viewed as something that cannot be packaged and transferred as a discrete object, the emphasis is not on transfer mechanisms, but on conditions, enabling knowledge co-creation and sharing. Such co-creation occurs when people are engaged in productive activities or jointly explore issues of mutual interest. In many organizations that have adopted the knowledge co-creation and sharing paradigm, communities of practice (CoPs) have become popular vehicles of collective learning and knowledge generation (Ardichvili, Page and Wentling, 2003; Ardichvili, 2008). According to Lave and Wenger (1991) and Wenger (1998), CoPs are systems in which participants have common interests, and engage in some form of productive activity, driven by these interests. CoPs are regarded as a major vehicle of organizational and community learning, since members of CoPs are learning from each other, and less experienced members of communities develop their understanding of the subject matter through interaction with other, more experienced members (Brown and Duguid, 1991). While the early research on CoPs was focusing mostly on local and co-located communities of practice (for example, copy machine repair

GARAVAN 9781781954171 PRINT.indd 200

22/09/2017 16:31

IHRD and managing knowledge  ­201 technicians, sharing their experiences during lunch breaks and at the proverbial water cooler), two converging trends – globalization and proliferation of IT – have led to the prominence of virtual CoPs (VCoPs). VCoPs are comprised of geographically dispersed individuals, who often live and work in completely different parts of the world and never meet face-to-face. Nevertheless, thanks to the communication technologies, these VCoPs could be “a more effective organizational form for know­ ledge creation than traditional and formal ways of structuring interaction” (Von Wartburg, Rost and Teichert, 2006, p. 299). There are numerous documented examples of successful use of VCoPs as vehicles of knowledge management in global organizations such as Caterpillar, Chevron, Ford, Xerox, Raytheon, IBM and Shell (Ardichvili et al., 2006; Haimila, 2001; Powers, 2004). VCoPs can be successful facilitators of knowledge creation and sharing only if participants feel comfortable contributing to community discussions through virtual communication technology and online forums. People in organizations often resist sharing their knowledge for a variety of reasons, ranging from considerations of power and competitiveness to misalignment between goals of knowledge sharing and organizational incentive schemes (Scarbrough, 2003). Contrary to popular belief, barriers to sharing often don’t have anything to do with selfish considerations of knowledge hoarding, and instead are based on fear of criticism, fear of misleading others, or the lack of understanding how to best share the knowledge (Ardichvili et al., 2006; Ardichvili, 2008). On the other hand, members of VCoPs could be motivated to share their knowledge by altruistic considerations (‘sharing contributes to common good’; ‘it is time to give back to the society’), and/or by individuals’ desire to establish themselves as recognized experts. Chiu, Hsu and Wang (2006) found that social ties, level of trust, considerations of reciprocity, strong identification with the community and its goals, shared values and vision, and common language influence employees’ willingness to share knowledge with VCoP members. In multicultural VCoPs (and we must stress that in today’s world most of VCoPs are likely to be multicultural), willingness to share knowledge depends largely on members’ culturally conditioned assumptions about appropriate and inappropriate ways of communicating and behaving. According to Wenger, McDermott and Snyder (2002, p. 118), “People’s willingness to ask questions that reveal their ‘ignorance’, disagree with others in public, contradict known experts, discuss their problems, follow others in the thread of conversation—all these behaviors vary greatly across cultures.” Ardichvili et al.’s (2006) review of cross-cultural KM research suggested that knowledge-sharing behaviour in multinational

GARAVAN 9781781954171 PRINT.indd 201

22/09/2017 16:31

202  Handbook of international human resource development firms is influenced by such cultural characteristics as in-group and outgroup orientation, face saving behaviour, differing perceptions of what constitutes modest behavior, and power distance. Specifically, when in-group orientation is high, employees will be willing to share know­ ledge with members of their in-groups, but will be reluctant to share with anybody else (even with members of the same larger ethnic group, who do not belong to the smaller in-group). Furthermore, knowledge sharing in VCoPs can be significantly hampered by the fear of losing face. In cultures where face saving is highly important (for example, China, Japan, Korea), employees may be reluctant to contribute to online discussions out of fear of losing face or causing somebody else to lose face (Li et al., 2007). Another culturally conditioned barrier to sharing is perception of what is modest and immodest behavior. For example, in some cultures posting lengthy and detailed knowledge entries online may be considered a form of immodest bragging. Finally, in high power distance cultures (Hofstede, Hofstede and Minkov, 2010) knowledge sharing can be constrained by subordinates’ reluctance to contradict their superiors or to act without “sanction from above.” In summary, both knowledge transfer and knowledge sharing literatures emphasize that success of transfer or sharing in international contexts depends on cultural distance between participants. Furthermore, this success depends on whether organizational culture and support systems (including HRM and HRD systems and processes) are conducive to sharing and transfer. In the next section of this chapter we will discuss HRD strategies that can be used in assisting organizations in creating, enabling, and managing KM systems in international and cross-cultural contexts.

THE ROLE OF IHRD IN KNOWLEDGE CREATION, TRANSFER, AND SHARING The role of IHRD in KM differs depending on what view of knowledge is adopted: the transfer metaphor or the co-creation metaphor. Under the first approach, the goal will be to increase capacity of individuals, groups, and organizations for knowledge transfer, adoption and use. Specific strategies could include: ●

Training and development activities, focused on explaining the value of knowledge to be transferred (note that different cultures may have divergent perceptions of what constitutes valuable knowledge).

GARAVAN 9781781954171 PRINT.indd 202

22/09/2017 16:31

IHRD and managing knowledge  ­203 ●

Development of skills in using knowledge databases and commun­ ication technologies. ● Creation of opportunities for informal knowledge exchange at conferences and international meetings. ● Creation of expert databases and technological tools, aimed at facilitating searching and contacting experts from around the world. ● International job rotations, internships, and short-term and longterm expatriate assignments. Under the second metaphor (stressing knowledge co-creation rather than transfer), development of a culture, conducive to joint knowledge creation, and long-term learning and development approaches (like apprenticeships and mentoring) are more suitable. HRD’s role, thus, is to help people in organizations to understand how to learn from each other (not just what to learn). Training becomes a means for developing capability for making generalizations and applying knowledge. Training sessions, using Argyris’s double-loop learning and Bateson’s “learning how to learn” (or deutero learning), could be implemented to facilitate such capacity expansion (Argyris and Schön, 1978). OD activities, on the other hand, become focused on creating a culture conducive to learning, and on creating a learning organization. At the same time, OD practitioners can focus on creating conditions for inter-cultural social interactions, both face-to-face and those conducted through online forums and social media. Liu, Pucel and Bartlett (2006) discussed strategies for promoting know­ ledge transfer in MNCs and suggested that it is imperative to make sure that employees appreciate the importance of transfer and are prepared to participate in it. This requires changes in the communication strategy, training and development, and culture change efforts. Furthermore, since there are different types of transferred knowledge, effort needs to be made to identify the types of knowledge to be transferred internationally and to develop support strategies for each of these types. Liu, Pucel and Bartlett (2006) discussed five types of knowledge transferred in MNCs in China’s information technology industry (management knowledge, knowledge of external environment, knowledge of culture, knowledge of market, and knowledge of technology), and identified transfer support practices used for each of the types of knowledge. The study determined that management knowledge transfer required various types of management training, while transfer of culture knowledge, in addition to training, required more long-term and outside the classroom strategies (for example, promoting mutual respect between managers from the home country and China, or creating opportunities for face-to-face interaction between employees from the two countries). Furthermore, transfer of knowledge of markets

GARAVAN 9781781954171 PRINT.indd 203

22/09/2017 16:31

204  Handbook of international human resource development required developing strategic alliances with other companies and working on joint projects with them, and the use of review teams to evaluate projects. Transfer of technology, in addition to skills training, required sending Chinese employees to the parent company for extended internships, and assigning foreign expats to supervise operations in China. Liu, Pucel and Bartlett (2006) concluded that HRD professionals who try to facilitate knowledge transfer in MNCs need to be able to first determine types of knowledge to be transferred, and then develop specific for each type of knowledge strategies, including both training and culture change efforts. Bhagat et al. (2002, p. 207) pointed out that “knowledge transferred through a long process of apprenticeship or mentoring is characterized by high viscosity, with the recipient gaining a significant amount of tacit knowledge, but only after a long period of time”. This suggests that transfer of complex and tacit knowledge requires strategies that are different from those, appropriate for transfer of explicit or less complex knowledge. Since a lot of work in multinational organizations is conducted in multicultural teams, IHRD practitioners need to develop a capacity for facilitating knowledge sharing in global and multicultural teams. A lot of this work will involve using virtual communication technologies and, accordingly, understanding of issues of virtual team collaboration, management and leadership. However, many multicultural teams work face-to-face and simple, not necessarily technology-based solutions could be highly effective in these cases. Thus, Harryson, Dudkowski and Stern (2008) described the case of the development of a new car, a Volvo C70, where teams of Swedes, Germans, and Italians have overcome cultural barriers by using socialization strategies aimed at helping the team members to get to know each other better (for example, watching soccer games together). Javidan et al. (2005) discussed various ways of overcoming cultural barriers to knowledge transfer that could be useful to IHRD professionals in developing appropriate learning and development strategies. Thus, they suggested that both parties need to agree on the goals of transfer, and establish criteria for measuring success in advance. This is important because culturally-conditioned perceptions of what is valuable knowledge can differ widely, and there could be no common understanding of what knowledge needs to be transferred and what channels can be used. Javidan et al. (2005) stated that power distance determines whether hierarchy will be used for organizational communication; in-group collectivist orientation will shape the level of acceptance and implementation of leadership concepts; and high uncertainty avoidance of the recipient (often manifested in resistance to new practices and procedures) means that more time will be needed to ensure that training results are implemented throughout

GARAVAN 9781781954171 PRINT.indd 204

22/09/2017 16:31

IHRD and managing knowledge  ­205 the organization. Javidan et al. (2005) suggest that cultural profiles of involved parties need to be mapped and discussed by transfer participants in special training sessions; relationship managers needs to be assigned; and deliberate efforts need to be made to learn from the initial transfer efforts and knowledge about the barriers and enablers of transfer needs to be disseminated. Another important area of focus for IHRD practitioners, concerned with knowledge transfer and sharing, is expatriate and repatriate preparation and development. Nery-Kjerfve and McLean (2012) explored the role of repatriates in knowledge transfer from subsidiaries to headquarters, pointing out that “repatriates often possess large amount of tacit know­ ledge that . . . provides a deeper understanding of the business operations and cultural dealings in international environments” (Nery-Kjerfve and McLean, 2012, p. 622). Despite the fact that repatriates’ knowledge is highly valuable, most organizations do not make a concerted effort to facilitate such transfer, and organizational rigidity of structures, rules, and cultural norms creates barriers to transfer. Oddou, Osland and Blakeney (2009) pointed out that, while expatriates and repatriates are a most valuable source of organizational knowledge and tool of knowledge transfer, most organizations have low levels of recognition of the value of expatriates and their stock of knowledge. IHRD practitioners need to create deliberate mechanisms for facilitating know­ ledge transfer utilizing expatriates and repatriates. Thus, Nery-Kjerfve and McLean (2012) argue for the creation of both formal and information processes in support of knowledge transfer. These may include processes for communication and encouraging interaction between repatriates and other employees (for example, assigning the repatriates to global teams, or giving them coaching and mentoring assignments). Oddou, Osland and Blakeney (2009) discuss the role of repatriates in knowledge creation and sharing and point out that repatriates will be most likely to share their knowledge if they will feel valued by the organization and other employees, feel that their knowledge is needed. Thus, deliberate strategies for re-socialization of repatriates, recognition of their importance, and promotion of their participation in social networks and facilitation of their feedback seeking behavior are important. To overcome barriers to knowledge transfer through expatriates, Oddou, Osland and Blakeney (2009) proposed that an organizational learning approach should be implemented at all stages of the expatriation–repatriation cycle. Specifically, it was suggested that organizational leaders need to create conditions in which repatriates will be perceived as experts. This can be achieved by showcasing repatriate’s knowledge and modeling related behavior by requesting repatriate’s input in problem

GARAVAN 9781781954171 PRINT.indd 205

22/09/2017 16:31

206  Handbook of international human resource development solving. At the same time, IHRD practitioners would need to provide repatriates with coaching on how to share their knowledge, how to become mentors to other employees, and how to transfer their knowledge to others. Furthermore, Oddou, Osland and Blakeney (2009) pointed out that training events alone are not sufficient: OD interventions, aimed at changing organizational routines (developing new routines, aimed at capturing the knowledge of repatriates), and creation of incentive mechanisms for encouraging the sharing and utilization of repatriate knowledge are equally important. OD professionals can engage in activities, aimed at developing trusting relationships between repatriates and other employees, creating a sense of community. Likewise, Crowne (2009) argued for creating a culture of continuous learning that will ensure that future expatriates will expect to share their knowledge, acquired on an international assignment, upon returning to the headquarters. In support of such cultures of learning firms would need to develop formal methods of gathering information about expatriate experiences. In addition to providing valuable information, such systems of data collection will provide an added benefit: the fact that the organization decided to invest in the development of these systems will be viewed as a sign that expatriate experience is valued. Crowne (2009) discussed further strategies for creating conditions under which expatriates’ knowledge is likely to be utilized to a large extent. First, she proposed to institute procedures for encouraging feedback seeking behavior, defined as “conscious effort toward establishing the correctness and adequacy of behaviors to achieve a valued end” (Crowne, 2009, p. 135). The second strategy is to facilitate and promote the use of social networks as vehicles of knowledge sharing. Discussing specific steps in implementing the two strategies, Crowne (2009) suggested that to promote feedback seeking, firms could create routines requiring regular conference calls, email exchanges, and meetings (either face-to-face or facilitated by distance communication technology). Our earlier discussion of knowledge brokering suggests that there are specific strategies that IHRD professionals can implement to assist expatriates in exercising their brokering function. Thus, expatriate training could include a discussion of two main transfer roles (direct and indirect); exercises, aimed not only at developing the expatriates’ ability to facilitate direct transfer of knowledge, but also focused on developing capabilities for developing social capital, for understanding hidden meanings and values, and developing ability to articulate and share this knowledge with others. While the above discussion focuses on knowledge flows from foreign subsidiaries to parent companies, or from headquarters to subsidiaries,

GARAVAN 9781781954171 PRINT.indd 206

22/09/2017 16:31

IHRD and managing knowledge  ­207 IHRD professionals also need to pay attention to knowledge transfer between subsidiaries. Thus, Miao, Choe and Song (2011) proposed to facilitate knowledge flows from subsidiaries to parent companies “by establishing efficient formal mechanisms such as an expatriation policy, a subsidiary performance evaluation system, etc.” (Miao, Choe and Song, 2011, p. 478). At the same time, IHRD practitioners would need to develop channels and mechanisms for peer-to-peer knowledge sharing between subsidiaries. As mentioned earlier, CoPs are regarded as important vehicles of knowledge sharing in numerous MNCs and other global and multinational organizations. Research shows that CoPs and VCoPs tend to be successful when they emerge spontaneously and are driven by members’ interest in the subject matter, rather than by organizational mandate or incentives. Therefore, the role of IHRD professionals becomes that of creators and supporters of conditions that are conducive for knowledge sharing and collaboration. To this end, IHRD would need to pay special attention to interventions, aimed at creating the sense of community and belonging. While in co-located communities (for example, located in the building or the same city), this could involve large group meetings, retreats, and interactive training sessions with participative exercises, in VCoPs opportunities for such face-to-face interactions will be limited. Therefore, IHRD professionals would need to think through strategies for creating a sense of community and trust building, appropriate for virtual environments. For example, it will be important to insist on organizing at least one initial face-to-face meeting of community members, and providing regular live videoconferences or Skype “meetings”, during which participants can get familiar with other community members’ appearance and nonverbal communication styles. Success of knowledge sharing through CoPs depends to the large extent on how differences in cultural norms are managed. Therefore, IHRD professionals in global and multinational firms need to study values and cultural preferences of employees from various locations and cultural groups and should use appropriate strategies when designing interventions. In addition, the use of local knowledge intermediaries (those familiar with local culture and values) is paramount.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE The above discussion of challenges and opportunities for IHRD as facilitator of international KM suggests that there is a plethora of o ­ pportunities

GARAVAN 9781781954171 PRINT.indd 207

22/09/2017 16:31

208  Handbook of international human resource development for research on the intersection of IHRD and KM. Literally all the areas of IHRD work, aimed at facilitating international KM, are still underexplored in the HRD literature and could become a base for substantial streams of empirical research. Here we will briefly consider three examples of potential areas for further investigation. First, as mentioned in the previous section, a growing area of IHRD work is the facilitation of knowledge transfer, creation, and sharing in globally distributed teams. While the literature on virtual and distributed teams is growing, studies, exploring the role of IHRD in development and facilitation of such teams are hard to find. Especially conspicuous is the lack of empirical studies on training and development approaches, best suited to the promotion of teams’ capacity for not only accomplishing their immediate production goals, but also for becoming effective conduits for knowledge transfer and creation. Second, research on expatriates as knowledge brokers is limited, and research on the potential role of IHRD in this brokerage process is non-existent. It would be important to identify how effective different IHRD interventions are in supporting expatriates’ brokerage activities. Furthermore, it would be important to study which specific training and development methods and techniques are most suitable for developing abilities to create social capital, to detect and articulate hidden cultural meanings and values, and to act as broker and mediator in two-way interaction between the headquarters and host country subsidiaries. Third, while there is fairly large body of research on knowledge sharing through communities of practice, including virtual and globally distributed communities, research on the role of IHRD in supporting such communities and knowledge sharing activities is highly limited, and research on the role of IHRD in cross-border CoP-based knowledge sharing is even more limited. Important questions to investigate in this context relate to the role of IHRD professionals in developing support infrastructure for global CoPs; the role of cultural differences in managing such CoPs and in effective training and development in support of CoPs; and the role of the interaction of organizational, professional, and national cultures in the emergence of CoP-based knowledge sharing organizational climates.

CONCLUSION Knowledge is a core asset of many organizations today, and managing knowledge creation and transfer has become a central concern for business executives and IHRD professionals. Much of KM work is conducted in international and multicultural settings, which suggests a central role

GARAVAN 9781781954171 PRINT.indd 208

22/09/2017 16:32

IHRD and managing knowledge  ­209 for IHRD. Two main areas of practice and research, related to know­ ledge management in international settings, were discussed in this chapter: knowledge transfer and knowledge co-creation and sharing. Among the main IHRD issues of KM are transfer of knowledge between subsidiaries and parent organizations; transfer among subsidiaries; and transfer among business organizations and their customers, suppliers, and business network partners. To facilitate such transfer, IHRD practitioners would need to create formal mechanisms and procedures, including training and development, establishment of incentive mechanisms, and development of communication strategies, both for knowledge transmission and for recognition of the importance of transferred knowledge. Expatriates and repatriates, virtual and globally distributed teams, and short-term rotational assignments and developmental overseas projects can be used to promote knowledge transfer. The knowledge sharing paradigm, on the other hand, is emphasizing knowledge creation as integral part of work practices, and calls for designing conditions that are conducive for co-creation of new knowledge through collaboration. Communities of practice, including Virtual CoPs, are regarded as important vehicles for such collaboration and knowledge co-creation and sharing. Important goals of IHRD practitioners, concerned with knowledge creation and sharing, are promoting the culture of organizational learning and continuous improvement, and supporting the use of VCoPs, mentoring, and informal learning in the workplace. It must be noted that the long-term success of organizational know­ ledge transfer and knowledge creation strategies requires participation and collaboration of multiple organizational players. In addition to IHRD and KM professionals, this group of relevant players could include HR generalists, IT specialists, corporate librarians, compliance officers, and line managers. To ensure the success of such collaboration, IHRD professionals would need to use their organization development and facilitation skills to help representatives of various professional groups surface their divergent assumptions, exchange ideas, and jointly create new approaches to solving international knowledge management problems.

REFERENCES Ardichvili, A. (2001), ‘The role of human resource development in transitioning from technology-focused to people-centered knowledge management’, in C. Sleezer, T. Wentling and R. Cude (eds), Human Resource Development And Information Technology: Making Global Connections, Boston: Kluwer Academic Publishers, pp. 89‒104. Ardichvili, A. (2008), ‘Learning and knowledge sharing in virtual communities of practice:

GARAVAN 9781781954171 PRINT.indd 209

22/09/2017 16:32

210  Handbook of international human resource development Motivators, barriers and enablers’, Advances in Developing Human Resources, 10(4), 541‒554. Ardichvili, A., Page, V. and T. Wentling (2003), ‘Motivation and barriers to participation in virtual knowledge sharing teams’, Journal of Knowledge Management, 7(1), 64‒77. Ardichvili, A., Maurer, M., Li, W., Wentling, T. and R. Stuedemann (2006), ‘Cultural influences on knowledge sharing through online communities of practice’, Journal of Knowledge Management, 10(1), 94‒107. Argyris, C. and Schön, D. (1978). Organizational Learning: A Theory of Action Perspective. Reading, MA: Addison-Wesley. Asmussen, C., Foss, N. and T. Pedersen (2013), ‘Knowledge transfer and accommodation effects in multinational corporations: Evidence from European subsidiaries’, Journal of Management, 39(6), 1397‒1429. Bhagat, R. Kedia, B., Harveston P. and H. Triandis (2002), ‘Cultural variations in the crossborder transfer of organizational knowledge: An integrative framework’, Academy of Management Review, 27(2), 204‒221. Boh, W., Nguyen, T.T. and Y. Xu (2013), ‘Knowledge transfer across dissimilar cultures’, Journal of Knowledge Management, 17(1), 29‒46. Brown, J.S. and P. Duguid (1991), ‘Organizational learning and communities of practice’, Organization Science, 2(1), 40‒57. Chiu, C., Hsu, M. and E. Wang (2006), ‘Understanding knowledge sharing in virtual communities: An integration of social capital and social cognitive theories’, Decision Support Systems, 42(3), 1872‒1888. Cook, S. and J.S. Brown (1999), ‘Bridging epistemologies: The generative dance between organizational knowledge and organizational knowing’, Organization Science, 10(4), 381‒400. Crowne, K.A. (2009), ‘Enhancing knowledge transfer during and after international assignments’, Journal of Knowledge Management, 13(4), 134–147. Currie, G., Burgess, N. and J. Hayton (2015), ‘HR practices and knowledge brokering by hybrid middle managers in hospital settings: The influence of professional hierarchy’, Human Resource Management, 54(5), 793–812. Davenport, T. and L. Prusak (1998), Working Knowledge: How Organizations Manage What They Know. Boston: Harvard Business School Press. De Long, D. and L. Fahey (2000), ‘Diagnosing cultural barriers to knowledge management’, Academy of Management Executive, 14(4), 113‒127. DeNisi, A., Hitt, M.A. and S.E. Jackson (2003), ‘The knowledge-based approach to sustaining competitive advantage’, in S.E. Jackson, M.A. Hitt and A. DeNisi (eds), Managing Knowledge for Sustained Competitive Advantage. San Francisco, CA: John Wiley & Sons, pp. 3‒33. Duan, Y., Nie, W. and E. Coakes (2010), ‘Identifying key factors affecting transnational knowledge transfer’, Information and Management, 47, 356‒363. Easterby-Smith, M., Lyles, M. and E.W. Tsang (2008), ‘Inter-organizational knowledge transfer: Current themes and future prospects’, Journal of Management Studies, 45, 677‒690. Gherardi, S. (2001), ‘From organizational learning to practice-based knowing’, Human Relations, 54(1), 131‒139. Gourley, S. (2001), ‘Knowledge management and HRD’, Human Resource Development International, 4(1), 27‒46. Haimila, S. (2001), ‘Shell creates communities of practice’, KM World, 19, 1‒2. Harman, C. and S. Brelade (2000), Knowledge Management and the Role of HR. London: Prentice Hall. Harryson, S.J., Dudkowski, R. and A. Stern (2008), ‘Transformation networks in innovation alliances – the development of Volvo C70’, Journal of Management Studies, 45, 730‒758. Harzing, A-W., Pudelko, M. and B.S. Reiche (2015), ‘The bridging roles of expatriates and inpatriates in knowledge transfer in multinational corporations’, Human Resource Management, online first publication, doi:10.1002/hrm.21681.

GARAVAN 9781781954171 PRINT.indd 210

22/09/2017 16:32

IHRD and managing knowledge  ­211 Hofstede, G., Hofstede, G.J. and M. Minkov (2010), Cultures and Organizations: Software of the Mind (3rd edition). New York: McGraw-Hill. Holden, R. (2001), ‘Knowledge management: Raising the spectre of the cross-cultural dimension’, Knowledge and Process Management, 8(3), 155‒163. Javidan, M., Stahl, G., Biodbeck, F. and C. Wilderom (2005), ‘Cross-border transfer of knowledge: Cultural lessons from Project GLOBE’, Academy of Management Executive, 19(2), 59‒76. Kanu, Y. (2005), ‘Tensions and dilemmas of cross-cultural transfer of knowledge: Poststructural/postcolonial reflections on an innovative teacher education in Pakistan’, International Journal of Educational Development, 25, 493–513. Kongpichayanond, P. (2009), ‘Knowledge management for sustained competitive advantage  in mergers and acquisitions’, Advances in Developing Human Resources, 11(3), 375‒387. Kostova, T. (1999), ‘Transnational transfer of strategic organizational practices: A contextual perspective’, Academy of Management Review, 24, 308‒324. Lave, J. and E. Wenger (1991), Situated Learning: Legitimate Peripheral Participation. New York: Cambridge University Press. Li, W., Ardichvili, A., Maurer, M., Wentling, T. and R. Stuedemann (2007), ‘Impact of Chinese cultural values on knowledge sharing through online communities of practice’, International Journal of Knowledge Management, 3(3), 46‒59. Liu, Y., Pucel, D. and K. Bartlett (2006), ‘Knowledge transfer practices in multinational corporations in China’s information technology industry’, Human Resource Development International, 9(4), 529‒552. Miao, Y., Choe, S. and J. Song (2011), ‘Transferring subsidiary knowledge in the global learning context’, Journal of Knowledge Management, 15(3), 478–496. Michailova, S. and G. Hollinshead (2009), ‘Western management training in Eastern Europe: Trends and developments over a decade’, Human Resource Development International, 12(2), 117–133. Nery-Kjerfve, T. and G. McLean (2012), ‘Repatriation of expatriate employees, knowledge transfer, and organizational learning: What do we know?’ European Journal of Training and Development, 36(6), 614‒629. Oddou, G., Osland, J. and R. Blakeney (2009), ‘Repatriating knowledge: Variables influencing the “transfer” process’, Journal of International Business Studies, 40(2), 181‒199. Pérez-Nordtvedt, L., Kedia, B., Datta, D. and A. Rasheed (2008), ‘Effectiveness and efficiency of cross-border knowledge transfer: An empirical examination’, Journal of Management Studies, 45(4), 714‒744. Powers, V. (2004), ‘Virtual communities at Caterpillar foster knowledge sharing’, Training and Development, 58(6), 40‒45. Ruisala, K. and V. Suutari (2004), ‘International knowledge transfers through expatriates’, Thunderbird International Business Review, 46(6), 743–770. Scarbrough, H. (2003), ‘Why your employees don’t share what they know’, KM Review, 6(2), 16‒20. Tsoukas, H. and N. Mylonopoulos (2004), ‘Introduction: Knowledge construction and creation in organizations’, British Journal of Management, 15, S1‒S8. Van Wijk, R., Jansen, J. and M. Lyles (2008), ‘Inter- and intra-organizational knowledge transfer: A meta-analytic review and assessment of its antecedents and consequences’, Journal of Management Studies, 45, 815‒838. Venzin, M., von Krogh, G. and J. Roos (1998), ‘Future research into knowledge management’, in G. von Krogh, J. Roos and D. Kleine (eds), Knowing in Firms: Understanding, Managing and Measuring Knowledge, London: Sage Publications, pp. 26‒66. Von Wartburg, I., Rost, K. and T. Teichert (2006), ‘The creation of social and intellectual capital in virtual communities of practice: Shaping social structure in virtual communities of practice’, International Journal of Learning and Change, 1(3), 299‒316. Wenger, E. (1998), Communities of Practice: Learning, Meaning and Identity. Cambridge: Cambridge University Press.

GARAVAN 9781781954171 PRINT.indd 211

22/09/2017 16:32

212  Handbook of international human resource development Wenger, E., McDermott, R. and W. Snyder (2002), Cultivating Communities of Practice: A Guide to Managing Knowledge. Boston, MA: Harvard Business School Press. Winter, S.G. (1987), ‘Knowledge and competence as strategic assets’, in D.J. Teece (ed.). The Competitive Challenge. New York: Harper & Row, pp. 159‒184.

GARAVAN 9781781954171 PRINT.indd 212

22/09/2017 16:32

10. IHRD, offshoring and outsourcing Valerie Anderson and Vijay Pereira

INTRODUCTION Offshoring and outsourcing are increasingly important to the business model of organisations of all types and sizes. The context of economic globalisation and technological development makes possible operations across borders regardless of boundaries of time or geography. Those who advocate outsourcing and offshoring point to at least four potential benefits for an organisation that chooses to outsource some of its production processes or services. First, operational and labour costs can be reduced. Second, the delegation of transactional tasks to external service providers enables a focus on ‘core business’. Third, it is possible to gain access to specialist resources not available internally. Fourth, it is a way of mitigating risk, particularly when access to new market areas is desired and the provider is closer to the end-user point of production or service delivery. As the phenomenon of offshored outsourcing has occurred so has increasing scrutiny and critique of the strategy as scandals and concerns have arisen about issues including child labour, hazardous working conditions, excessive working hours, poor wages and lack of appropriate training and development that are associated with some offshored outsourced arrangements. As a result the level of non-governmental organisation (NGO) and activist group scrutiny of the sourcing practices of multinational corporations (MNCs) in particular has increased as offshore outsourcing has become more prominent as a business strategy (Aldashev, Limardi and Verdier, 2015). Offshoring and outsourcing have important consequences for IHRD practice, policy and strategy; there are implications for training and development but also for organisation development, knowledge transfer and organisational culture. However, little attention has been given, in practice and by scholars to the IHRD issues. In this chapter we examine the emergence of outsourcing and the growing trend to ‘disperse’ outsourcing contracts to offshore destinations. We illustrate our points with short ‘case illustrations’. The argument of this chapter is that different forms of offshoring and outsourcing present various possibilities and challenges for IHRD although these are under-researched and underdeveloped in the IHRD policy arena. 213

GARAVAN 9781781954171 PRINT.indd 213

22/09/2017 16:32

214  Handbook of international human resource development Outsourcing occurs when one company provides business services for another organisation that would usually be delivered ‘in-house’. Training and development services have traditionally been prime candidates for outsourcing. In many organisations consultancy provision is ‘bought in’ where there is limited in-house capability to deliver individual and organ­ isational training to meet development needs in a cost and time effective way (Gainey and Klaas, 2005). This chapter is not concerned with the particulars of training and development outsourcing. It focuses on the wider HRD issues resulting from the outsourcing of processes or services from any area of the business and the IHRD issues associated particularly with offshore outsourcing. This chapter addresses three objectives. First, it examines different strategies of offshoring and outsourcing and the principal factors that influence these strategic decisions. Second, it considers the IHRD implications of different offshoring and outsourcing decisions and develops an integrated model of offshore outsourcing and IHRD. Finally the IHRD issues and challenges associated with offshoring and outsourcing are discussed and implications for IHRD policy, practice and research are identified.

OUTSOURCING AND OFFSHORING: DEFINITIONS AND EXAMPLES In this section we offer definitions of outsourcing and offshoring and provide examples to indicate the potential effects for employment practices and IHRD more generally. Our definition of IHRD is outlined later in the chapter when IHRD perspectives on these issues are discussed. Outsourcing is the time-limited arrangement for business processes or services that could be performed ‘in-house’ to be handed over to a process or service provider referred to as the vendor (Kedia and Lahiri, 2007). An increasing range of business functions can be outsourced such as software development; digitised business processes; order processing; insurance claims and billing; customer service, accounts and payroll; telemarketing; transcription; tax preparation; legal services; research and development, human resource management (HRM) and HRD. Outsourcing tends to be undertaken more by medium or larger enterprises although smaller firms increasingly form part of the outsourcing market (Stack and Downing, 2005). Outsourcing arrangements can have significant consequences for employees in vendor and client organisations. The case of IBM and JP Morgan, drawn from the IBM website (www.ibm.com) provides a useful

GARAVAN 9781781954171 PRINT.indd 214

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 215 illustration of the potential scope and consequences of outsourcing as well as the reverse phenomenon (sometimes referred to as ‘backsourcing’). In December 2002 the North American financial services firm JP  Morgan announced a seven-year outsourcing arrangement with IBM. This contract involved provision of services through data centres, help desks, distributed computing, and data and voice networks. In addition to cost reduction the aim of the arrangement, from JP Morgan’s perspective, was to achieve the upgrading of the technological infrastructure of the organisation and to create the capacity for growth, innovation and increased quality. At the time, this $5 billion contract was the largest outsourcing contract on record and some JP Morgan employees transferred to IBM as part of the arrangement. Two years later JP Morgan merged with Chicago-based Bank One, which itself had cancelled an outsourcing contract with IBM and AT&T a few years earlier. Two and a half months later the merged company announced that it would be ending its IBM arrangement early and ‘backsourcing’ its information technology back to ‘in-house’ provision. During the backsourcing process redundancies occurred although some of these were merger-related. However, not all of the employees who had transferred to IBM were re-employed. Offshore outsourcing refers to the practice of handing over business process or service functions to vendors located in one or more foreign countries where the client organisation does not have direct ownership, authority or control. This can involve firms setting up their own ‘service centres’ in another country and retaining full control (referred to as captive offshoring) or it can involve independent third party offshore outsourcing (Kedia and Lahiri, 2007; Carmel and Nicholson, 2005). Although the negotiation of outsourcing contracts requires considerable planning and expertise, offshore outsourcing contracts involve further complexity. Most outsourcing ‘client’ organisations come from North America, Europe and Japan but the range of offshoring locations offered by vendors has expanded rapidly to include countries such as India, China, Philippines, Russia, Ireland, Mexico, Romania, Argentina, Costa Rica, Vietnam, Poland, Nicaragua, Botswana, Sri Lanka, South Africa, Malaysia, Jordan, Ghana and Tunisia (Kedia and Lahiri, 2007; Thite, 2012). An example of captive offshoring is the establishment of a Service Centre to support the UK-based retailer Tesco (www.tescohsc.com). Although problems in sustaining its rate of growth and market share emerged from around 2010 as food retail markets in UK underwent significant restructuring Tesco none-the-less recorded a turnover of over £72 billion ($115 billion) in 2013 with a presence in twelve countries. In six of these countries it was considered to be a market leader. In 2013 Tesco employed

GARAVAN 9781781954171 PRINT.indd 215

22/09/2017 16:32

216  Handbook of international human resource development more than 500,000 employees in its 6,600 stores and online business. Back in 2004, as part of its strategy to achieve competitive advantage Tesco set out to lead the retail sector in developing its online capability. At that time it became the first international retailer to develop a fully-owned support centre in India. The Hindustan Service Centre (HSC) in Bangalore, India was established to provide a worldwide operations and technology centre. The aim was to enable standardisation and build centralised capabilities and competencies to be leveraged across the whole of the Tesco Group. Although Tesco was looking for cost–benefits through this strategic development the decision to establish the service centre offshore was influenced by the ready availability of a highly skilled labour workforce and the technological capabilities in India. The rationale espoused by Tesco for establishing a fully-owned and controlled service centre was to encourage a full sharing of company values and commitment to customer focus with the offshore service provider. At its height the service centre that resulted employed 6500 people involved in creating and delivering transactional day to day support for stores and online business as well as contributing to more strategic functions associated with the planning and implementation of new offerings across the business function spectrum of retail including IT, HR, Business, Finance, Commercial and Supply Chain and Property Services.

THE DEBATE ABOUT OFFSHORING AND OUTSOURCING Neither outsourcing nor offshoring are new phenomena although increasing economic globalisation and the rate of innovation underpinning technological developments have exacerbated the trend to consider these options as part of strategic business thinking. Outsourcing and offshoring strategies have been evident amongst some large organisations since at least the 1980s (Robinson and Kalakota, 2004) and by 2008 it was estimated that the global market for process and services offshore outsourcing had increased to US $975 billion. In times of economic growth as well as ‘austerity’ offshore outsourcing has continued to be undertaken (Rowan, 2008). The debate amongst business strategists has shifted from ‘what and how’ to ‘where and how’ to outsource. Although, as illustrated by the Tesco example earlier in this chapter, some organisations choose to establish their own ‘service centres’ in another country and retain full control most organisations develop business relationships with third-party services providers. Outsourcing and offshoring decisions have significant consequences for employing organisations as well as for those in the

GARAVAN 9781781954171 PRINT.indd 216

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 217 vendor organisation who undertake work on their behalf. Two areas of debate about the implications of offshore outsourcing highlight fundamental differences in perspective that are also represented in IHRD scholarship and practice. The first area of debate relates with the ‘people consequences’ of offshore outsourcing strategies. The economic case for the dispersal of service or process delivery away from the originating organisation is grounded in the potential to reduce cost, improve quality, achieve faster delivery times, provide scope for a focus on ‘core issues’, share risk, increase flexibility and achieve better penetration of overseas markets. In economic terms this means that some fixed employment structures can be transformed into variable-cost structures so that transaction costs can change in response to the business climate without a direct effect on the client organisation. However, concerns raised about the consequences of outsourcing and offshoring focus on the negative effect on skills development and the increasing job insecurity consequences of outsourcing decisions (Adya, 2008; Chermack, Lynham and Ruona, 2003; Cho, Cho and McLean, 2009; Lane Morris, 2008; Rothwell and Kolb, 1999). From an HRD perspective offshore outsourcing is frequently portrayed as a strategy that ‘de-skills’ workers in ‘home’ areas and limits or destroys the local labour market. In addition critics highlight further negative implications relating to the impact and trauma for individuals and organisations of structural change resulting from large-scale outsourcing and the severe and negative consequences for employee trust and commitment (Gainey and Klaas, 2005; McGuire, Cross and O’Donnell, 2005). Some HRD scholars have claimed that the offshore outsourcing process is difficult to reconcile with the traditional humanist discourse of learning and development (McGuire, Cross and O’Donnell, 2005). An alternative perspective, underpinned by the performative model of HRD (Swanson, 1995), is that offshore outsourcing provides potential business benefits through achieving maximum return on skills and capabilities, wherever they may be found. The second enduring debate within the domains of both IHRD and IHRM is the extent to which globalisation and business strategies relating to offshore outsourcing lead to a convergence or divergence of business cultures and practices. From one perspective the tendency for organisations to adopt different HRD policies and practices according to their ‘corporate evolution’ will determine whether their business model is fundamentally ‘domestic’, ‘international’, ‘multinational’ or ‘global’ (Adler and Ghadar, 1990). From this perspective the extent to which the global/ local dilemma (Harris and Brewster, 1999) is resolved depends on the extent to which decision makers require operating units across the world

GARAVAN 9781781954171 PRINT.indd 217

22/09/2017 16:32

218  Handbook of international human resource development (including outsourcing service providers) to be differentiated or integrated and how they should be controlled and coordinated. Alternative strategies are possible. The ethnocentric policy in which the company’s culture predominates and HRM and HRD are centralised and relatively standardised is one approach. Alternatively the polycentric or decentralised model provides for people management and development responsibility to be devolved to subsidiaries and managed in line with local norms and values. Advocates of the convergence thesis argue that offshore outsourcing reinforces the trend for different business and cultural norms and values to converge as the global market economy emphasises cost and quality considerations; productivity pressures and transactions across borders (Brewster, 2004). Critics of the convergence argument, however, draw attention to the complexities of operating in different countries and of employing different national categories of workers which require a distinction between domestic and international HRD (Dowling, 1999). Those who support the divergence theory highlight the variables that moderate differences between domestic and international practices regardless of the occurrence of offshore outsourcing such as the local cultural environment; the industry (or industries) with which the organisation is primarily involved; and the culturally informed attitudes of senior management. A third position, ‘crossvergence’ has also been advanced. This approach claims to reflect the way that organisations operating in more than one country are able to pragmatically identify what features of the home culture should be privileged; what features of the destination region are valuable and what elements of HRD have universal relevance (Yeung, 2011) through complementing cultures and practices from both home and ‘destination’ countries. From this perspective it is possible to argue that elements of the business culture of both parties to the offshore outsourcing arrangement might be synthesised to enable the development of new and innovative business principles, modes of operation, and values.

FORMS OF OFFSHORE OUTSOURCING Although globalisation provides the context for offshore outsourcing in the contemporary business environment a number of different theories have been put forward in the international business literature to describe and explain different forms of the phenomenon and these are briefly outlined in this part of our chapter.

GARAVAN 9781781954171 PRINT.indd 218

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 219 The Tactical Form of Offshore Outsourcing Transactional Cost Economics (TCE) theory (Coase, 1937; Williamson, 1975) underpins what is often referred to as tactical or transactional outsourcing decisions. TCE highlights the ‘make or buy’ opportunities for organisations to lower the costs of planning, adapting, and implementing transactional business processes. This thinking can be applied as much to decisions about where to site manufacturing processes as where to arrange for the delivery of other business processes and services (Benson and Zhu, 2002). The business relationships that develop between the vendor and the client organisation from this form of outsourcing are tactical (Coase, 1937; Williamson, 1975) and the business arrangement will last for as long as there is benefit on both sides. However, the expected benefits and outcomes are transactional rather than transformational. The Strategic Form of Offshore Outsourcing The resource-based view of the firm (RBV) (Barney, 1991, 2001) which is a more familiar theory in the strategic HRM and strategic HRD domains, is also used to describe and explain what is often referred to as longer term ‘strategic partnering’ arrangements between an outsourcing or offshoring vendor and a client organisation. The RBV approach is premised on the assumption that competitive advantage for any organisation is achieved through the application of a bundle of available organisational resources. Therefore, organisations may choose to outsource processes and services to enable them to focus on and exploit the internal strengths which contribute to strategic added value (Barney, 1991). Those who advocate outsourcing within the RBV framework suggest that working with outsourcing providers can generate opportunities to enhance knowledge creation and organisational renewal (Boxall and Purcell, 2000; Wright et al., 2001). In this way outsourcing can be part of a strategy of differentiation of human capital assets to add value to the organisation’s ‘social capital’, absorptive capacity and strategic innovation capability (Collins and Smith, 2006; Minbaeva et al., 2003). As example of this form of partnership initiated in 2006, drawn from the Accenture website (http://nstore.accenture.com) involved the Bank of Ireland and Accenture, a large management consulting, technology and outsourcing services company operating in 200 cities and 52 countries around the world. The Accenture account of this arrangement suggests that the arrangement they entered into was to enable the Bank of Ireland to take forward its performance strategy through developing as a learning organisation. The outsourcing process had major implications for the

GARAVAN 9781781954171 PRINT.indd 219

22/09/2017 16:32

220  Handbook of international human resource development HRD function as the decision was made to centralise and outsource all training and development. All functions relating to training content development, course administration, scheduling and training delivery management were outsourced to Accenture. Accenture implemented its services through developing a Learning Management System (LMS) and provided input into the curriculum and an annual training planning process for the bank to provide the basis for a strategic change of training processes and provide increased opportunities for employees to access the LMS online to view a comprehensive training catalogue and to self-register for e-learning and face-to-face training programmes based on core banking and management competencies established by the Bank of Ireland. The Transformational Form of Offshored Outsourcing Resource dependency theory (RDT) (Pfeffer and Salancik, 1978) is used to describe and explain what have been termed as ‘transformational partnerships’ with vendor organisations. This theory focuses on the power relationships and resource exchange involved between an organisation and its different stakeholder constituencies. RDT suggests that partnership with an offshored or an outsource services provider offers opportunities for capability enhancement and mutual access to expert resources that would otherwise be unavailable. In cross-border arrangements, for example, a contract for the delivery of offshored services might address the client organisation’s lack of suitably qualified people in one or more countries of operation. It might also be a way to address work permit restrictions and, more pertinently for the transformative approach, it might open up international management development opportunities. However, such a strategy is not without risk as it involves some loss of control by the initiating partner (Kedia and Lahiri, 2007). Theoretical explanations grounded in TCE, RBV and RDT are helpful to an understanding of different forms of offshoring and outsourcing but the migration of business processes and services from one organisation to another that may be sited thousands of miles away is far from simple. An initial decision to outsource may result from business decisions motivated by cost economics and transactional issues but aspirations and motivations may change to focus more on achieving sustained and strategically orientated partnerships to enable knowledge transfer, organisational learning and organisational development. These different forms of outsourcing and offshoring and the theories most frequently used to explain them are depicted in Figure 10.1. Figure 10.1 sets out the different forms of offshoring or outsourcing and the theoretical explanations that are often advanced. However, what

GARAVAN 9781781954171 PRINT.indd 220

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 221

Cost efficiency

Form of offshore outsourcing

Theoretical grounding

Transformational

Resource dependency

Strategic

Resourcebased view of the firm

Tactical

Transaction cost economics

Commitment

Risk

Strategic motivation Shared risk. Business transformation Core competence. Access to skills and knowledge

Figure 10.1  Forms of offshore outsourcing is less clear in the literature is the extent to which a linear developmental relationship from the most basic (tactical) form of offshored outsourcing to the transformational form occurs in practice. One illustration of a transition from one offshore outsourcing form to another is provided in research reported by Pereira and Budhwar (2015). Bank I (a pseudonym used for the purposes of this chapter) was established in 2007 as a small business to deliver outsourced recruitment research and intelligence to executive search firms around the globe. It was UK owned and headquartered and within a year of its formation the business had grown to employ 180 people. A merger with a UK-based executive recruitment outsourcing organisation occurred in 2008 and by 2013 the number of staff in the organisation had risen to 450 with 80 per cent of employees based in India. The ‘reach’ of the company soon expanded beyond the UK and client organisations were attracted from US, parts of EU, the Middle East, Asia-Pacific and Australasia from three main industry sectors: financial services, construction and HR consultancy organisations. Over time the service offering of the organisation developed to focus more exclusively on Executive level recruitment services which it considered to involve longer-term and more profitable client relationships representing a ‘high-end’ service of planning, structuring, and operationalising executive recruitment processes on behalf of clients. As a result of these changes the role and expectations of UK-based Bank I employees radically altered to focus on working with the clients’ account teams on a day-to-day basis and overseeing performance and service delivery issues. However, to ensure ‘business continuity’ in addition to

GARAVAN 9781781954171 PRINT.indd 221

22/09/2017 16:32

222  Handbook of international human resource development c­ lient-facing ‘relationship management’ their role also involved coaching people in India to help them interact with the different client organisations and ensure that ‘business traffic’ could be directed to appropriate channels. In this way opportunities for knowledge sharing between client and vendor organisation were enhanced.

OFFSHORING AND OUTSOURCING: THE IHRD CHALLENGES In this chapter IHRD is defined as: “processes that address the formulation and practice of HRD systems, practices and policies at the global, societal and organisational levels” (Metcalfe and Rees, 2005, p. 455). The diversity of IHRD practice and scholarship reflected in the literature is testament to the range of different understanding in various parts of the world about the purpose and scope of HRD (Wang and McLean, 2007). Topics ‘within scope’ of IHRD include: comparative and cross-cultural HRD, national HRD (NHRD), global HRD, and research into the career issues of those in internationalising organisations who work across borders (Anderson, 2015). A range of different theoretical perspectives underpin different features of IHRD scholarship, some of which also feature in the offshore outsourcing literature. Theories within the IHRD domain include, but are not limited to: RBV and the knowledge-based view (KBV) of the firm, human capital theory; institutional theory, social network/social capital theories, structuration theory and stakeholder theory (Anderson, 2015). Although the IHRD research stream is very vibrant the issues of offshoring and outsourcing are under-researched and little is known about the IHRD implications of this business model (Anderson, 2015). However, drawing on the conceptualisations that underpin both IHRD and theories of offshore outsourcing we now propose five HRD issues that organisations who undertake some form of offshoring or outsourcing are likely to encounter. As HRD is concerned with learning and performance at individual, team, organisational and institutional levels the first issue to be addressed is the requirement for a focus on learning needs of vendor organisations as well as for the client business. When taking forward offshoring or outsourcing processes many organisations establish some form of outsourcing ‘Programme Management’ function to manage the outsourcing processes but research suggests that supplier capabilities and the identification of training needs for both internal and supplier staff, transactional structural interfaces and performance metrics are given scant attention (Lacity, Willcocks and Rottman, 2008). We argue that, whatever form of offshored outsourcing is enacted (even where aspirations

GARAVAN 9781781954171 PRINT.indd 222

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 223 are limited to transactional and cost-containment outcomes) a proactive approach to identify the importance of skills development, career and talent management issues in both ‘client’ and ‘vendor’ organisations is necessary if the technical capabilities required to deliver, measure and performance-manage process effectiveness are to be developed and sustained. Second, the decision to outsource offshore requires HRD attention to the NHRD policies in destination countries (Alagaraja and Wang, 2012; Benson and Zhu, 2002; Osman-Gani and Chan, 2009). In a context where NGOs and other activist groups are increasing the levels of scrutiny on global employment patterns due-diligence by the HRD function is necessary to examine different policy and institutional approaches to skill development in the context of different national systems of employee relations. Without an understanding of workforce demographics and labour market issues it is possible that any benefits that might accrue from offshored provision may be negatively offset by poor performance or reputational damage caused as a result of employment scandals exposed by international agencies that have in the past included headlines about excessive hours of work, avoidable fatal factory accidents and transactional fraud (see for example Responsible Trade Worldwide, www.responsibletrade worldwide.com/). A third important issue of HRD relevance for offshoring and outsourcing is the requirement for the development of change management and virtual teamworking capability, across multiple time zones, geographic regions and cultural barriers (Chermack, Lynham and Ruona, 2003; Fisher et al., 2008; Rothwell and Kolb, 1999; Yeo, 2008). Our conceptual analysis indicates that management learning and organisation development processes are required if new ideas, values, systems, and techniques are to be developed in a context of different cultural and business assumptions that may persist in the initiating and provider organisations (Thite, 2013; Baruch et al., 2013; De Cieri, Cox and Fenwick, 2007). As offshoring relationships develop beyond the transactional towards strategic partnerships so issues such as organisational capability development, absorptive capacity and collaborative innovation are important for HRD to address to contribute to sustainable performance. Fourth, although concepts of talent management now form part of the IHRD discourse attention is most usually focused on international ‘elite’ executives and managers grounded in the headquarters of organ­ isations that utilise offshoring and outsourcing strategies. Our analysis suggests that attention is also needed on the HRD and social and inter-­ organisational learning needs of employees that may be termed ‘glocals’ who work across cultures in offshored outsourcing contexts without leaving home. Important issues for HRD to address include the ­development of

GARAVAN 9781781954171 PRINT.indd 223

22/09/2017 16:32

224  Handbook of international human resource development r­ elationship trust capability and knowledge transfer opportunities (Lacity, Willcocks and Rottman, 2008). Fifth, global HRD approaches highlight the importance of both ­know­ledge-based and resource-based capabilities and the development of value creation through human agency and social capital development so that in complex and longer-term (transformational) forms of offshoring or outsourcing partnerships HRD strategies in both client and vendor organisations can be aligned (Wang and Sun, 2012). In line with perspectives about ‘crossvergence’ it is possible that non-Western forms of HRD might enrich the global HRD approach of the organisation (Thite, 2012, 2013). Figure 10.2 represents an integrated framework that brings together these issues, developed on the basis of a synthesis of the IHRD and offshore outsourcing literatures that have been outlined in this section of the chapter. This forms the basis for further discussion of the implications of offshoring and outsourcing for the role of IHRD.

Global HRD Management learning

Offshore service provider

NHRD

Transformational Knowledge transfer Strategic Technical capabilities CrossTactical cultural; cross‐time zone; Virtual communication; Contracting, metrics,

Development of ethical and legal framework and values

Relationship trust capability

Initiating organisation

Organisation development

NHRD

Emergence of cross‐vergent models of HRD

Figure 10.2  Offshore outsourcing and IHRD

GARAVAN 9781781954171 PRINT.indd 224

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 225

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE In a context where limited research attention has so far been paid to the IHRD implications of offshored outsourcing, we now discuss the emerging research agenda for this developing area. First, IHRD research is needed into the social and skill development issues that affect inter-organisational relationships. In particular research is needed to understand and explain patterns of inter-organisational trust and collaboration between vendor organisations and client organisations. The impact of culture on know­ ledge management in international teams remains an under-researched area although cultural and social issues are accepted as important influences on the effectiveness of knowledge exchange processes. Second, scant research has so far been undertaken into the leadership and management learning processes that occur across vendor and client organisations. In contexts where strategic or transformation partnerships are intended then IHRD research is needed into the extent to which technical and managerial knowledge can be shared to achieve knowledge transfer and organisation development. Important research questions about the cultural and knowledge deployment antecedents and outcomes of offshore outsourcing may be posed. In addition little is known about the factors that stimulate and follow from changes in organisational capability and collaborative innovation. More research is needed on what influences processes of assimilation of new ideas, values, systems and techniques in offshore outsourcing contexts. Study of offshoring and outsourcing offers the potential for fresh insights into NHRD. A third area of research is into the effect that outsourcing contracts have on different regions of the world, the effect on national vocational education and training (NVET) and skills policies and the role of other institutions, such as NGOs. For example, in what ways have NHRD policies in different regions of the world been influenced by increased competition for offshored contracts? What effect have different national vocational education and training (NVET) and skills policies had on the decision processes relating to offshore outsourcing? What labour market issues are raised by the continuing trend to offshore outsourcing as a feature of international business models? To what extent does ‘cultural distance’ affect the trajectory of and execution of offshore outsourcing processes? Fourth, questions relating to cross-national and global forms of HRD also arise from the framework indicated in Figure 10.2. For example, to what extent have institutional offshore outsourcing arrangements led to a convergence of HRD systems, processes and thinking? What is the effect

GARAVAN 9781781954171 PRINT.indd 225

22/09/2017 16:32

226  Handbook of international human resource development of offshore outsourcing on indigenous HRD practices in destination countries? To what extent do the providers of offshore services and processes influence the HRD thinking and practices of their client organisations? Linked with this is the need to examine the HRD role in embedding coherent ethics and values throughout organisations involved in offshore outsourcing. Further questions remain about the extent to which offshore outsourcing provides a basis for HRD professionals to better understand and integrate intercultural practices into their global HRD operations. To summarise, there are many areas where new knowledge is required. Little is known about the factors that affect the assimilation (or rejection) of new ideas, values, systems, and techniques that emerge as offshore outsourcing processes are undertaken. Talent management and leadership development issues require research attention. Offshoring and outsourcing may be important for organisational capability, absorptive capacity, and collaborative innovation so more research is needed into these concepts and their likely achievement through offshored outsourcing. More research is needed into virtual, cross-institutional teamworking arrangements in offshore outsourcing contexts. Finally, as indicated already in this chapter, too much HRD research focuses on the needs of the client or ‘initiating’ organisation and more research attention is needed to examine and understand the experience of the vendor organisation. The extensive scope of the research agenda into the IHRD implications of offshoring and outsourcing that we have suggested here requires research that is descriptive, exploratory and explanatory; different research paradigms and methods are necessary to answer different research questions in valid and credible ways. The multi-layered and complex nature of IHRD in offshore outsourcing contexts suggests that cross-sectional research may be less useful but multilevel, longitudinal, comparative and case study research strategies are all appropriate. In addition, it is likely that a range of theoretical perspectives will provide interesting explanations of the connections between strategy, leadership, structure and organisation culture that are important for understanding offshore outsourcing practices. Figure 10.2 highlights the importance of strategic understanding by HRD practitioners of the purpose and form of outsourcing agreements with which their organisations may be involved as there are different implications for IHRD. It is important to understand the implications of the different forms of outsourcing and offshoring for IHRD research and practice. First, transactional forms of outsourcing are often predicated by a need for ‘systems convergence’ across national and organisational borders. Transactional outsourcing arrangements are unlikely to deliver the efficiencies expected unless adaptation to new systems and the development of appropriate communication infrastructures are planned and

GARAVAN 9781781954171 PRINT.indd 226

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 227 implemented from a learning and development perspective. Increasingly convergence relies on ‘real-time data’ and expectations by both parties of enhanced productivity to maximise efficiency but at the same time to maintain data and process safety and security. In such circumstances HRD practitioners can add value to the process by developing training and work-based learning strategies to support convergence of both systems and practices for implementation in vendor and client organisations. A second implication of transactional forms of outsourcing is the opportunity for IHRD professionals to support the development of contracting skills and contract performance management processes within the client organisation. These capabilities are prerequisites of effective contract monitoring, evaluation and the development of appropriate inter-organisational working relationships (Doh, 2005). Related to the development of contract management capability is the necessity of fostering both ‘technical’ and ‘transactional’ trust between those whose work is based in both client and vendor organisations. In transactional relationships ‘deep-seated’ trusting relationships are unlikely but clarity about the services required and the skills necessary to deliver those services, by both parties involved, is essential (Doh, 2005; Gainey and Klaas, 2005). Third, where an organisation determines to undertake a more strategic form of outsourcing the model suggests that a priority for IHRD is the identification of core competencies, knowledge creation opportunities and organisational renewal prospects in order to support appropriate knowledge transfer processes between both parties. The model suggests that sustained performance of a strategic outsourcing partnership requires an IHRD focus on cross-cultural, cross-border and cross-organisational HRD systems to enable information, ideas and practice to be effectively shared and transferred between different business organisations operating across cultures and contexts (Clark and Geppert, 2002). The strategic form of outsourcing or offshoring provides HRD practitioners with the opportunity to develop new approaches to communication and collaboration. Those in the HRD field are uniquely placed to explore opportunities for the development of developmental ‘bridges’ that mediate between those who work on behalf of the organisation whether in the client or the vendor organisation (Boden et al., 2012). The integrated model we have developed also indicates opportunities for IHRD practices associated with ‘transformational’ forms of offshore outsourcing. Successful transformational partnerships requires an acceptance that organisational culture is not ‘static’ but is re-negotiated and adjusted over time to fit the objectives and aspirations underpinning the partnership relationship between those in client and vendor organisations. This is a key issue if those undertaking work on behalf of the organisation,

GARAVAN 9781781954171 PRINT.indd 227

22/09/2017 16:32

228  Handbook of international human resource development whether in the client or vendor organisation are to move beyond national or organisational stereotypes and investigate creative and site-specific modes of operating to provide the basis for productive knowledge sharing practices developed over the long term from both ‘onshore’ and offshore perspectives (Boden et al., 2012). Life cycle models of HRD (Wilson, 2005) suggest that transactional and cost-centric approaches are unsustainable as organisational growth occurs and HRD has an important role to play in facilitating management development to ensure distinctive and innovative HRD approaches that reflect elements of Western and indigenous approaches to people management and development can be fostered to support and enable a more indigenous (and less competitively replicable) approach to sustained business performance (Thite, 2012).The medium and long-term nature of transformational offshore outsourcing contracts provides an opportunity for IHRD practitioners to examine different management and HRD models developed in successful offshored organisations and consider the extent to which integrated and adaptive approaches can be developed as a result of the cross-transfer of different organisational practices (Thite, 2012). In this way IHRD strategies can facilitate the assimilation of new ideas, values, systems and techniques as part of the process of achieving change or transformation of business practices and processes that go beyond technical knowledge and enable new ways of thinking and behaviour (Clark and Geppert, 2002; Thite, 2012).

CONCLUSION Economic globalisation and technological developments that make possible business undertaken across boundaries of time, space and geography form the context for this chapter. In response to the challenges of achieving competitive distinctiveness whilst minimising transaction costs, many organisations make the decision to transfer responsibility for a range of business processes and services to vendor organisations in domestic or foreign destinations. This feature of business strategy has received limited attention by HRD practitioners and scholars. In this chapter we have examined the implications of global offshore outsourcing for HRD and assessed the principal factors that influence the choice of offshore or outsourcing strategy for employing organisations. We have identified areas of potential synergy between the offshore outsourcing and the IHRD literatures and presented a typology of offshore outsourcing contracts or partnerships: ‘tactical’, ‘strategic’ and ‘transformational’. We have also highlighted different features of IHRD. In presenting an integrated frame-

GARAVAN 9781781954171 PRINT.indd 228

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 229 work that bridges scholarship in offshore outsourcing and IHRD we have been able to discuss the implications and priorities for IHRD research and practice. The framework we provide here can act as a basis for describing and making sense of different forms of offshoring and outsourcing so that IHRD practitioners and researchers can initiate appropriate actions and practices to enhance and sustain performance at individual and organisational levels. The implications for the role of IRHD that arise from the integrated framework presented in this chapter span four main areas. First, practical issues and opportunities for HRD practitioners at the organisational level are illuminated. Second, the HRD implications of the different forms of offshore outsourcing are highlighted. Third, the National HRD research opportunities; the implications for Global HRD, and some further research questions are introduced. In particular many of the questions arising from this integrated framework suggest that longitudinal, comparative and case study research strategies are required. This provides an opportunity for HRD scholars to work in partnership with practitioners to investigate and add to the knowledge base about the complex issues associated with offshore outsourcing. Although the initial business decision to outsource offshore may result from decisions motivated by transaction cost economics the framework developed in this chapter suggests that IHRD professionals might play an important role in developing sustained partnerships if organisations are to move beyond a tactical and transactional form of outsourcing and incorporate a strategic or transformational element into their decision thinking. As a result, although the decision to outsource can be seen as a challenge to humanistic assumptions about HRD, there are implications that arise from this framework that relate to knowledge transfer, organisational learning and organisational development in relation to both parties to the offshore outsourcing arrangement. In examining the HRD implications of global patterns of development for individuals, teams, organisations, national societies and geographic regions of the world, therefore, the IHRD community cannot afford to overlook the offshore outsourcing phenomenon.

REFERENCES Adler, N. and Ghadar, F. (1990). Strategic human resource management: A global perspective, in R. Pieper (ed.), Human Resource Management. Berlin: de Gruyter, pp. 231‒260. Adya, M.P. (2008). Women at work: Differences in IT career experiences and perceptions between South Asian and American women. Human Resource Management, 47(3), 601‒635.

GARAVAN 9781781954171 PRINT.indd 229

22/09/2017 16:32

230  Handbook of international human resource development Alagaraja, M. and Wang, J. (2012). Development of a national HRD strategy model. Human Resource Development Review, 11(4), 407‒429. Aldashev, G., Limardi, M. and Verdier, T. (2015). Watchdogs of the invisible hand: NGO monitoring and industry equilibrium. Journal of Development Economics, 116, 28‒42. Anderson, V. (2015) International HRD and offshore outsourcing: A conceptual review and research agenda. Human Resource Development Review, 14, 259‒278. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99‒120. Barney, J.B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643‒650. Baruch, Y., Dickmann, M., Altman, Y. and Bournois, F. (2013). Exploring international work: Types and dimensions of global careers.  The International Journal of Human Resource Management, 24(12), 2369‒2393. Benson, J. and Zhu, Y. (2002). The emerging external labor market and the impact on enterprise’s human resource development in China. Human Resource Development Quarterly, 13(4), 449‒466. Boden, A., Avram, G., Bannon, L. and Wulf, V. (2012), Knowledge sharing practices and the impact of cultural factors: Reflections on two case studies of offshoring in SME. Journal of Software Evolution and Process, 24, 139–152. Boxall, P. and Purcell, J. (2000). Strategic human resource management: Where have we come from and where should we be going? International Journal of Management Reviews, 2(2), 183‒203. Brewster, C. (2004). European perspectives on human resource management. Human Resource Management Review, 14(4), 365‒382. Carmel, E. and Nicholson, B. (2005). Small firms and offshore software outsourcing: High transaction costs and their mitigation. Journal of Global Information Management, 13, 33‒54. Chermack, T.J., Lynham, S.A. and Ruona, W.E.A. (2003). Critical uncertainties confronting human resource development. Advances in Developing Human Resources, 5(3), 257‒271. Cho, Y., Cho, E. and McLean, G.N. (2009). HRD’s role in knowledge management. Advances in Developing Human Resources, 11(3), 263‒272. Clark, E. and Geppert, M. (2002). Management learning and knowledge transfer in transforming societies: Approaches, issues and future developments. Human Resource Development International, 5(3), 263‒277. Coase, R.H. (1937). The nature of the firm. Economica, 4, 386‒405. Collins, C.J. and Smith, K.G. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Academy of Management, 49(3), 544‒560. De Cieri, H., Cox, J.W. and Fenwick, M. (2007). A review of international human resource management: Integration, interrogation, imitation. International Journal of Management Reviews, 9(4), 281‒302. Doh, J.P. (2005). Offshore outsourcing: Implications for international business and strategic management theory and practice. Journal of Management Studies, 42(3), 695‒705. Dowling, P. (1999). Completing the puzzle: Issues in the development of the field of international human resource management. Management International Review, 39(3), 27‒43. Fisher, S.L, Wasserman, M.E., Wolf, P.P. and Hannan Wears, K. (2008). Human resource issues in outsourcing: Integrating research and practice. Human Resource Management, 47(3), 501‒523. Gainey, T.W. and Klaas, B.S. (2005). Outsourcing relationships between firms and their training providers: The role of trust. Human Resource Development Quarterly, 16(1), 7‒25. Harris, H. and Brewster, C. (1999). International Human Resource Management. London: Routledge. Kedia, B.L. and Lahiri, S. (2007). International outsourcing of services: A partnership model. Journal of International Management, 13, 22‒37. Lacity, M.C., Willcocks, L.P. and Rottman, J.W. (2008). Global outsourcing of back office

GARAVAN 9781781954171 PRINT.indd 230

22/09/2017 16:32

IHRD, offshoring and outsourcing  ­ 231 services: Lessons, trends, and enduring challenges. Strategic Outsourcing: An International Journal, 1(1), 13–34. Lane Morris, M. (2008). Combating workplace stressors: Using work–life initiatives as an OD intervention. Human Resource Development Quarterly, 19(2), 95–105. McGuire, D., Cross, C. and O’Donnell, D. (2005). Why humanistic approaches in HRD won’t work. Human Resource Development Quarterly, 16(1), 131–137. Metcalfe, B.D. and Rees, C.J. (2005). Theorizing advances in international human resource development. Human Resource Development International, 8(4), 449‒465. Minbaeva, D., Pedersen, T., Björkman, I., Fey, C.F. and Park, H.J. (2003). MNC knowledge transfer, subsidiary absorptive capacity, and HRM. Journal of International Business Studies, 34(6), 586–599. Osman-Gani, A.M. and Chan, T.H. (2009). Trends and challenges of developing human capital in Singapore: An analysis of current practices and future potentials. Human Resource Development International, 12(1), 47–68. Pereira, V. and Budhwar, P. (2015). HRM and firm performance: The case of the Indian IT/ BPO industry, in A. Malik and C. Rowley (eds), Business Models and People Management in the Indian IT Industry: From People to Profits. Abingdon: Routledge, pp. 58–78. Pfeffer, J. and Salancik, J. (1978). The External Control of Organizations. New York: Harper & Row. Robinson, M. and Kalakota, R. (2004). Offshore Outsourcing: Business Models, ROI and Best Practices. Atlanta: Mivar Press. Rothwell, W.J. and Kolb, J.A. (1999). Major workforce and workplace trends influencing the training and development field in the USA. International Journal of Training and Development, 3(1), 44‒53. Rowan, L. (2008). Worldwide HR BPO Vendor Analysis. Framingham, MA: IDC. Stack, M. and Downing, R. (2005). Another look at offshoring: Which jobs are at risk and why? Business Horizons, 48, 513‒523. Swanson, R.A. (1995). Human resource development: Performance is the key.  Human Resource Development Quarterly, 6(2), 207‒213. Thite, M. (2012). Strategic global human resource management: Case study of an emerging Indian multinational. Human Resource Development International, 15(2), 239‒247. Thite, M. (2013). Ethics and human resource management and development in a global context: A case study of an Indian multinational. Human Resource Development International, 16(1), 106‒115. Wang, G.G. and Sun, J.Y. (2012). Toward a framework for comparative HRD research. European Journal of Training and Development, 36(8), 791‒808. Wang, X. and McLean, G.N. (2007). The dilemma of defining international human resource development. Human Resource Development Review, 6(1), 96‒108. Williamson, O.E. (1975). Markets and Hierarchies: Analysis and Antitrust Implications. New York: Free Press. Wilson, J. (ed.) (2005). Human Resource Development. London: Kogan Page. Wright, P.M., McMahan, G.C., Snell, S.A. and Gerhart, B. (2001). Comparing line and HR executives’ perceptions of HR effectiveness: Services, roles, and contributions. Human Resource Management, 40(2), 111‒123. Yeo, R.K. (2008). How does learning (not) take place in problem-based learning activities in workplace contexts? Human Resource Development International, 11(3), 317‒330. Yeung, A. (2011). Celebrating 50 years: How robust and relevant is our HR knowledge? Human Resource Management, 50(4), 451‒453.

GARAVAN 9781781954171 PRINT.indd 231

22/09/2017 16:32

11. IHRD and lean management Meera Alagaraja

INTRODUCTION The global economy is placing a premium on flexibility, adaptability and responsiveness of human resources as a key towards sustaining competitive advantage (Swanson and Holton, 2009). Under the influence of external environmental pressures, organizations undergo continuous transformation through a series of acquisitions, mergers, partnerships and alliances with virtually every aspect of their value chain. The emergence of the new economy has implications for organizations in terms of human resource development (HRD) capabilities that add value to knowledge development, improvement and innovation (Swanson and Holton, 2009). On the one hand, this transforming economy demands organizations to continuously learn, adapt and improve. New ideas, processes, business models and interventions are constantly emerging in the hope of ushering substantive change, deep learning and performance improvement at multiple levels in the organization. As a result, companies are beset with problems of choosing the ‘right’ interventions, business models or ideas and selecting an appropriate route for their successful implementation in the workplace. The adoption of appropriate interventions can no doubt benefit organizations. But inhibited by competition and market pressure to consistently deliver profits and dividends for shareholders, firms are tempted to adopt different strategies and business models that in reality often do not yield rich dividends benefits nor guarantee return on investment over the long term (Hale, 2007). In fact, achieving flexibility, adaptability and responsiveness in organizations requires a tremendous investment in people and talent management. In the recent past, the adoption of lean strategy drastically changed the business landscape of many companies. As a major organizational intervention, lean strategy or lean management has received much attention. Womack and Jones (1996) popularized lean strategy, coining the term ‘lean thinking’, which was foundational to modem manufacturing practices especially in organizations such as Toyota. Change interventions such as lean strategy are often characterized as being technologically superior. They offer newer ways of approaching business challenges as companies continue to evolve. The 232

GARAVAN 9781781954171 PRINT.indd 232

22/09/2017 16:32

IHRD and lean management  ­233 arguments in favour of ‘JIT’ (just-in-time), ‘TQM’ (total quality management) and ‘lean’ suggest that the adoptions of these interventions increase the likelihood of dramatically improving organizations’ performance. Even though many organizations have reported improvements in the short term, few organizations report long-term success with lean implementation over time. Thus, it is imperative to understand ways in which organizations can leverage the full effect of lean for achieving lasting performance. In this chapter, the impact of the popular lean strategy is investigated. The chapter draws from the scholar-practitioner literature to develop an understanding of the factors that facilitate lean strategy implementation. Additionally, the IHRD role and linkage in supporting organizational interventions is also examined to highlight the need and importance of integrating IHRD in lean as a way to enhance and sustain flexibility, adaptiveness and responsiveness in organizations. The chapter offers an integrative perspective on the factors that facilitate the adoption, implementation and sustainability of lean implementation in organizations as well as explicate the relevance of these factors for enhancing the strategic value of IHRD. The facilitating factors in the successful implementation of lean and their relevance to IHRD are elaborated. Organizations can identify and leverage critical factors that facilitate lean to maximize implementation success. Further, organizations can also recognize and devise ways for removing barriers to performance and learning that can emerge during the implementation of lean strategy (Alagaraja, 2014). Finally, the chapter presents implications for IHRD theory, research and practice.

LEAN MANAGEMENT: AN OVERVIEW The evolution of lean management has undergone several conceptualizations beginning with the emergence of the TQM in the early 1950 (Hines, Holweg and Rich, 2004). Lean initiatives started out initially in the automotive industry and subsequently adopted by a variety of industries such as healthcare, construction, and service industries. Lean management involves JIT, total quality control (TQC), flexible programmable technology, and other revolutionary shop floor manufacturing practices with the singular aim of enhancing flow and attaining perfection in the production process (Appelbaum and Batt, 1994; Taira, 1996; Womack and Jones, 1996). In fact, the central idea of lean management is founded on the principles of creating value, recognizing important value streams in an organization’s processes, pursuing efficiency and effectiveness in ­achieving

GARAVAN 9781781954171 PRINT.indd 233

22/09/2017 16:32

234  Handbook of international human resource development optimal flow in key processes, enabling customer demand as a way to ‘pull’ or drive organizational decision-making and finally, attaining perfection through continuous improvement process of identifying and eliminating wasteful activities (Womack and Jones, 1996). The popularity of lean management in organizations spurred subsequent interest in research. Scholars began to investigate the impact and effect of lean implementation for improving operational as well as overall organizational performance. Despite increasing interest in lean, few organizations apart from Toyota and Wiremold report sustained success in the implementation of lean related initiatives, programmes and practices. In fact, several studies offer contradictory findings with regard to the implementation of lean strategy (for example, Achanga et al., 2006; Piercy and Rich, 2004; White, Ojha and Kuo, 2009). The focus of this chapter is to identify critical organizational factors that support lean (Shah and Ward, 2003; Timans et al., 2012; Worley and Doolen, 2006). The recognition of these factors are important considerations for understanding the formulation and implementation of important organizational strategies (Alagaraja and Egan, 2013). The investigation of the factors supporting lean are not only important for operations and management sciences, but also for IHRD as they suggest an important and different approach towards involving HRD practitioners in organizational strategy formulation and implementation. Far too often, HRD professionals are left out of important discussions related to the formulation and implementation of important initiatives, programmes and strategies.

FACTORS FACILITATING LEAN IMPLEMENTATION Several articles describe antecedent or contributing characteristics that facilitate and enhance organizational experiences in implementing lean. From this literature, seven major factors were identified as follows: necessary conditions, mechanisms, tools and practices, partnerships, long-term focus and communication (including training) (Achanga et al., 2006; Hines, Holweg and Rich, 2004; Scherrer-Rathje, Boyle and Deflorin, 2009; Sohal and Eggleston, 1994; Terziovski, Sohal and Samson, 1996; Valerdi, Nightingale and Blackburn, 2008; White, Ojha and Kuo, 2009). A visual representation of important factors in the successful implementation of lean is illustrated in Figure 11.1. Each factor and its relevance to IHRD are described as follows.

GARAVAN 9781781954171 PRINT.indd 234

22/09/2017 16:32

IHRD and lean management  ­235

Necessary Conditions Partnerships

Mechanisms

Lean Strategy Long-term focus

Tools

Training

Communication

Figure 11.1  Factors facilitating lean implementation

NECESSARY CONDITIONS FOR LEAN IMPLEMENTATION The first factor essentially describes the specific nature of extant organizational conditions as an important facilitator of lean implementation. This factor describes embedded ecological characteristics in the organization’s external and internal environment. For example, environmental conditions external to the organization significantly influence the selection and choice of lean. Competitors, industry and market conditions, as well as customers create enabling conditions in the adoption of lean. For example, supply chain partners, demanding customers and a thriving competition in the market hastened lean adoption in some organizations (Mahapatra and Mohanty, 2007). In addition to these contextual considerations, internal characteristics such as business capabilities including financial, structural and product portfolios were also deemed as necessary for lean success (Achanga et al., 2006; Sohal and Eggleston, 1994). For instance, financial investment secured long-term focus on the lean implementation process. Strong financial capabilities enabled recruitment of external

GARAVAN 9781781954171 PRINT.indd 235

22/09/2017 16:32

236  Handbook of international human resource development lean consultants as well as investments in the design and delivery of lean related training. Financial capabilities also afforded implicit advantages for organizations undergoing lean implementation. The symbolic leverage of financial capabilities meant that Line and IHRD managers were able to pull workers out of production lines for lean training without adverse loss to the business. Thus, internal characteristics were also critical in the adoption and implementation of lean. Four such internal characteristics – ­leadership, business capabilities, mindsets and management commitment were identified. The importance of leadership in providing direction and focus during implementation is a necessary condition and is examined next. Leadership. Gaining support for company mission and vision, timeliness, innovation, cost, commitment to change, and inspiring the workforce were noted by several scholars as important for lean execution (Terziovski, Sohal and Samson, 1996). Leaders are involved in fostering knowledge, skill enhancement, tactical management, as well as acquisition of new ideas for organizational competitiveness (Achanga et al., 2006). Thus, leadership is a significant necessary condition for lean. Business capabilities. The concept of focused factory underscores inherent business capabilities associated with processes, products and people that can sustain lean implementation (White, Ojha and Kuo, 2009). A focused factory model draws attention towards simplifying organizational structure, reducing number of products and processes, and minimizing complexities of physical constraints (White, Ojha and Kuo, 2009). This model reduces structural and technological constraints, strengthens linkages between tactical metrics while emphasizing crucial enterprise level concerns (Valerdi, Nightingale and Blackburn, 2008). Put together, business and financial capabilities are critical in facilitating conditions that can be considered as necessary for lean. These conditions are important for IHRD as they provide facilitating conditions for the implementation of important IHRD initiatives such as training, development as well as emphasize the need for long-term focus on talent management strategies. IHRD professionals must recognize these embedded ecological characteristics as necessary conditions for the formulation as well as implementation of strategic IHRD. Two additional conditions – mindsets and management commitment – recognize the importance of the extant organizational culture which is an important factor for lean implementation. Without these conditions, the chances of lean success were considered remote. These conditions are very significant considerations for IHRD professionals as organizational mindsets, schemas, values and norms shape managerial sense making of the organization’s internal and external contexts and are elaborated as follows.

GARAVAN 9781781954171 PRINT.indd 236

22/09/2017 16:32

IHRD and lean management  ­237 Mindsets. Developing a lean mindset involves the adoption of specific attitudes that support continuous improvement. A continuous improvement mindset was considered as a significant factor in upgrading systematic production capabilities (Helper and Kiehl, 2004). Furthermore, adopting an enterprise level perspective helped in addressing continuous improvement issues across the supply chain (Valerdi, Nightingale and Blackburn, 2008). The combined effect of developing a continuous improvement mindset through the involvement of leadership, establishing union agreements that support long-term job security facilitate a continuous improvement mindset. A supportive work culture which emphasizes continuous improvement describes a lean mindset. The ability of senior leadership to operate in diverse environments, setting direction for and guiding change help in the development of a continuous improvement mindset in the organization (Achanga et al., 2006, Bhasin and Burcher, 2006). The pursuit of organ­ izational improvements in quality, cost, delivery and design eventually lead to continuous improvement across the supply chain (van Hoek, Harrison and Christopher, 2001). Several authors (for example, Hall, 1995; Lathin, 2000) suggest that comprehensive lean programmes can be successfully implemented only when companies focus both on soft and hard aspects of quality management. Management commitment. Top management support was a crucial factor for carrying out continuous improvement efforts in the organization (Scherrer-Rathje, Boyle and Deflorin, 2009). Management commitment contributed to general improvements in the visual management of the shop floor. With top management commitment, employees recognized the importance of allocating time or resources on lean related projects. In addition, employees felt more supported when dealing with work issues because they knew lean was a top priority for the management. Management commitment ensured that employees realized not only the importance of lean, but also the interconnections of lean with other organizational initiatives. Furthermore, management involvement provided lean implementers access to resources and support structures thereby, facilitating shorter times for decision-making as well as preventing communication breakdowns. IHRD professionals have an important role in shaping the organizational mindset as well as gaining management commitment for important IHRD related initiatives. IHRD professionals are skilled in leading organizational change and development and these skills are particularly significant for lean success. IHRD must also become involved in the formulation as well as implementation of lean strategy. The transformation of embedded attitudes, values and norms cannot happen successfully

GARAVAN 9781781954171 PRINT.indd 237

22/09/2017 16:32

238  Handbook of international human resource development without the involvement of IHRD. However, far too few organizations consider the role and value of strategic IHRD in strategy formulation and implementation.

MECHANISMS In order to realize the benefits of lean, it is imperative that organizations develop formal and informal mechanisms for translating lean principles and philosophy in the real world. Participative (for example, employee suggestion programmes) and consultative mechanisms (for example, small group activities, cross functional teams) enable the translation of lean principles in practice at the individual, team and organization levels and are elaborated as follows. Impact on individuals. Formal mechanisms such as employee suggestion programmes provide a sense of ownership of lean related changes and also enhance buy-in from employees. Consultative mechanisms enable employee autonomy, provide greater opportunity for productivity gains and continued support for lean improvement initiatives. At the individual level, these mechanisms ensure shared understanding of lean related goals. In addition to employee suggestion schemes, recognition for employees who actively promote lean, as well creating a culture where employees can effect work improvements without fear of failure also benefit lean efforts. These systemic improvements prevent employees from reverting to their pre-lean implementation behaviours where a lack of participation and involvement in work can lead to productivity and performance related challenges for individuals and the organization. Furthermore, consultative and participatory mechanisms enhance employee autonomy as well as engagement in work, which can sustain continued support for lean improvement initiatives. The literature advocates emphasizing formal support for employee autonomy in decision-making (Boyer and Sovilla, 2003; Spear and Bowen, 1999), demonstrating the benefits of lean early on in the implementation and, accumulating evidence of long-term sustainability of lean efforts (Hines, Holweg and Rich, 2004). Employee involvement in the early stages of lean implementation was identified as a significant factor in increasing the likelihood of success for lean efforts that followed. Impact on teams. Institutionalizing mechanisms that facilitated teamwork through a number of small group activities are important in the successful implementation of lean. White, Ojha and Kuo (2009) declare the importance of teams for addressing workflow and process related responsibilities. Consultative and participatory mechanisms at the team

GARAVAN 9781781954171 PRINT.indd 238

22/09/2017 16:32

IHRD and lean management  ­239 level help to build and develop cross functional synergies (Ahlström, 1998). These synergies are important as they revitalize key value streams in the organization, as well as identify important processes that cut across departmental and functional silos. Improvements in non-value added performance across different levels and functions in the organization at the team level impact performance and learning at the individual level while accruing benefits at the level of the organization. Impact on organizations. A number of organizational level mechanisms were reported by scholars in total quality management (TQM), JIT and lean (Ahlström, 1998; Piercy and Rich, 2004; Scherrer-Rathje, Boyle and Deflorin, 2009; White, Ojha and Kuo, 2009). Lean principles reinforce the importance of systems level perspectives and thus, deployment of an enterprise level process model is essential for lean transformation. Formal mechanisms such as identifying process owners and champions for lean deployment are important structural arrangements that enhance organ­ izational performance (Piercy and Rich, 2004). For example, ScherrerRathje, Boyle and Deflorin (2009) propose structural alterations and the need for interdisciplinary teams. A systems level perspective also aids in recognizing non-value added processes across the organizational value chain (White, Ojha and Kuo, 2009). In other words, the implementation of lean systems in a holistic manner was a significant factor in enhancing implementation efforts. In addition to the consultative and participatory mechanisms, continual evaluation of process improvement efforts at the three levels (individual, team and department) was also deemed important. Continual evaluation was identified as a critical system level mechanism which influenced lean implementation. Addressing mistakes through periodic evaluations ensured that the implementation efforts stayed on track. These evaluation efforts institutionalized a learning culture through constant reflection. The use of external consultants provided validation and evaluation of progress in meeting lean objectives (Scherrer-Rathje, Boyle and Deflorin, 2009). The efficiency of single departments or the units to maximize results can be addressed by continual evaluation. Valerdi, Nightingale and Blackburn (2008) suggest optimizing operational resource flexibility as well as capacity utilization for improving relationships and linkages across vertical or horizontal structures and processes within the organization for maximizing enterprise level efficiencies and effectiveness. To bring about transformative level change at a systems level entails long-term focus on the organizational vision and mission. Long-term results can only result from the vision and commitment of the senior leadership team to systems level change and behaviour modification. The steadfast adherence to lean principles demand organizations develop this long-term focus.

GARAVAN 9781781954171 PRINT.indd 239

22/09/2017 16:32

240  Handbook of international human resource development

LONG-TERM FOCUS Long-term focus contextualizes the importance of thinking about the organizational change and development at the level of the enterprise or supply chain. Valerdi, Nightingale and Blackburn (2008) strongly emphasize enterprise level thinking in the organization as a framework for decision-making. This context offers long-term focus in measuring and evaluating lean implementation. Thus, organizations that have a long-term focus prioritize the need for balancing non-financial as well as financial metrics which, in turn, expands the scope of measuring value added performance measures. Bhasin and Burcher (2006) also recommend the usage of indices such as training hours per employee as a measure by which the organization is able to create a nurturing learning environment. Long-term focus also provides an operational guide for planning and execution of several strategic initiatives in a gradual and appropriately sequenced manner (White, Ojha and Kuo, 2009) According to them, the comprehensive implementation of JIT (just-in-time) systems and its effect on organizational capability building provided the foundation for building other capabilities such as on time delivery, and volume flexibility at low cost. Long-term focus emphasized prioritization of initial capability building efforts through employee involvement, as well as enhancing autonomy through participative and consultative mechanisms. These initial capability-building efforts focus on process flow, value stream mapping as well as developing cohesive structural arrangements that impact performance at multiple levels in the organization. Helper and Kiehl (2004) developed the notion of ‘systematic production capabilities’ for achieving high quality production performances that involve not only streamlining the work processes, but also changing attitudes (values and culture), incentives (structure), and relationships, both internal and external (suppliers and customers) to the organization. These initiatives can emerge only from having a long-term vision and focus. Long-term focus enhances systemic capacity and capability building for the achievement of current and future organizational outcomes. Longterm focus also creates an environment where learning is encouraged as a way to engage individuals, teams and other key stakeholders. In order to increase employee involvement and participation, it is imperative that lean related knowledge and tools are disseminated so that employees can reexamine existing tasks, responsibilities, roles, processes and reporting relationships. In fact, the introduction of several lean tools was deemed necessary for implementing lean. The application of the right combination of tools at the shop floor enabled employees to experience the benefits of lean (Abdulmalek and Rajgopal, 2007).

GARAVAN 9781781954171 PRINT.indd 240

22/09/2017 16:32

IHRD and lean management  ­241

TOOLS Several research studies examined the use and effect of lean related tools on operational and strategic performance at different levels of the organ­ ization (Brau, Fawcett and Morgan, 2007; Soderquist and Motwani, 1999; White, Ojha and Kuo, 2009). For instance, White, Ojha and Kuo (2009) examined several tools, grouping applications based on their utility and impact on different aspects of operational and strategic performance. TQC (total quality control) was viewed as strategic top management initiative driving continuous improvement. TQC reduced variation in the production process and was recommended for early adoption during lean implementation. Soderquist and Motwani (1999) recommended integration and consistency in the tool applications without specifying a gradual, sequential implementation plan. In similar lines, Bhasin and Burcher (2006) suggested the simultaneous implementation of multiple lean tools through extensive training. Brau, Fawcett and Morgan (2007) advocated for continued investment in lean related tools and technology. The application and implementation of tools as a bundle of interrelated practices and their introduction in a gradual and sequential manner influenced lean implementation outcomes.

TRAINING Lean quality strategies demand employees with higher levels of skills, knowledge and expertise (Achanga et al., 2006; Bamber and Dale, 2000; Hancock and Zayko, 1998). Multifunctioning employees ensure uninterrupted flow of the organization’s operations. Multi-skilled employees not only enhance the quality of products and services but also enhance supply chain-wide lean efforts which is important for maintaining continuity of workflow, strengthening problem solving capabilities and effectively responding to turnover and absenteeism challenges. There is an overall streamlining of labour requirements through multi skilling (Mahapatra and Mohanty, 2007). Bonazzi and Botti (1995) view the training process and outcomes associated with multi skilling as a way of “increasing more responsible ways of working” (Bonazzi and Botti, 1995, p. 411). The adoption of lean not only provides meaning and purpose at work; it also sensitizes employees in recognizing the importance of quality as well as the interdependent nature of tasks and processes. As a result, problem solving capabilities within employee groups and teams are enhanced. The breadth of job and skills training permits problem solving, as well as addresses quality

GARAVAN 9781781954171 PRINT.indd 241

22/09/2017 16:32

242  Handbook of international human resource development related issues. Training employees in technical, analytical, planning and interpersonal related work brings forth the necessary depth of understanding work processes and the interdependent nature of tasks and work outputs. IHRD approaches of training, development and involvement are needed to support and enable empowerment of multi-skilled employees (Mahapatra and Mohanty, 2007). IHRD professionals need to involve top management in the systematic training and development of their human resources as this can build a strong business case for greater IHRD role in lean strategy implementation (Alagaraja and Egan, 2013).

COMMUNICATION Several studies also reported communication as a significant factor for enhancing lean implementation (Scherrer-Rathje, Boyle and Deflorin, 2009; Soderquist and Motwani, 1999). The explicit communication of lean goals and objectives was important for declaring management commitment, addressing potential employee concerns regarding their role, responsibilities and implicit changes in the work flow accompanying lean implementation. Scherrer-Rathje, Boyle and Deflorin (2009) interviewed senior management, middle managers and shop floor employees to compare and contrast two major lean implementation efforts within a single organization. The first lean project was reportedly a failure. In contrast, the second lean project implemented after an interval of nine years, was a success. Gaining initial support from employees regarding lean related changes, and communication of overall vision contributed to the success of the second lean project. Through communication, the management team was able to reduce resistance to change, as well as dispelling rumors and doubts regarding job security. Soderquist and Motwani (1999) recommend explicit communication of quality objectives through general meetings, memos, notes and training to communicate overall lean objectives and goals. Communication of challenges, risks and benefits associated with lean implementation enhance transparency of strategic goals. Communication of early lean wins from the outset increase support from employees and managers, as the entire workforce gains a better understanding of the benefits. Additionally, there was greater buy-in as well as excitement over the implementation in other parts of the organization (Scherrer-Rathje, Boyle and Deflorin, 2009). Soderquist and Motwani (1999) emphasized balancing top-down communication with a bottom-up information exchange approach to ensure continual evaluation and comprehensive analysis of lean efforts through employee feedback and communication with top leadership. As a result,

GARAVAN 9781781954171 PRINT.indd 242

22/09/2017 16:32

IHRD and lean management  ­243 communication of management vision through concrete interventions provided the means of communicating management commitment towards quality as well as dissemination of tools and methods to all employees. Lean thus, demanded greater understanding of the interdependent nature of tasks, processes, roles and responsibilities among key stakeholders. Since the goal is enterprise level improvement, partnership between key internal stakeholders was deemed pivotal for facilitating lean implementation.

PARTNERSHIPS The evolving nature of trust among stakeholders is key towards the successful transition to lean production. Bonazzi and Botti (1995) emphasize the necessity for developing diverse patterns of reciprocity and obligation among key stakeholders. The production of trust through intentional interactions between stakeholders over time helps to develop reputation and credibility and characterized successful change management efforts and interventions. Accumulation of knowledge through cross-functional interface was also crucial to lean performance. Riis, Mikkelsen and Andersen (2008) recommend developing interdependencies across disciplines and functions as well as across improvement initiatives to ensure contributions from different functions in the organization. In addition, improvement initiatives also need to be integrated for creating an appropriate degree of synergy within and between functions. Learning from project failures and successes enhanced the learning capacity of the organization (Motwani, Kumar and Antony, 2004). Not surprisingly, senior executives valued learning from unsuccessful projects as valuable to the organization (Lifvergren et al., 2010). Constant reframing of expectations among internal stakeholders reinforced stakeholder coalitions and internal partnerships. The ultimate goal was to integrate diverse organizational processes, people and systems to provide customer value. In addition, organizations also needed to simultaneously strengthen external partnerships with customers and suppliers. The quality of supplier partnerships was identified as an important factor (Soderquist and Motwani, 1999) for lean implementation. Strong external partnership positively influenced integration and consistency of the manufacturing process. Suppliers played an important role in ensuring that the organization maintained a steady flow of products and services. According to Brau, Fawcett and Morgan (2007), alliances with suppliers and customers provide access to inter-organizational skills and resources. They not only improved information flows, but also stabilized demand

GARAVAN 9781781954171 PRINT.indd 243

22/09/2017 16:32

244  Handbook of international human resource development patterns, organizational efficiency, effectiveness, productivity and quality (Chutima and Kaewin, 2007). Soderquist and Motwani (1999) believe that close personalized contacts with customers and suppliers benefit the strategic positioning of the organization. When suppliers and customers jointly addressed performance issues, measurements and improvement plans, there was greater benefit and value across the entire supply chain spanning several firms. Womack and Jones (1996) also recommend the conduct of joint audits involving suppliers and customers.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE A review of the extant literature revealed extensive focus on the practice of lean tools and techniques for improving operational performance (for example, Soderquist and Motwani, 1999; White, Ojha and Kuo, 2009). This literature brought to light the application of various lean practices and their effect on operational performance. Scholars and practitioners also shared strong agreement on the effect of lean strategy on organizational performance – although empirical support for this claim remains inconclusive. Furthermore, understanding the process of implementing lean strategy from an IHRD perspective has received limited empirical support. In addition to addressing this gap, the chapter also exposed the need for examining the sustainability of lean strategy implementation over time. The chapter reframes existing literature on lean from an IHRD lens as a way to examine the potential role for IHRD in supporting lean in organizations. The focus on managing and developing people in organizations during the implementation of lean is an important outcome, even though few scholars in IHRD and other disciplines have addressed this important issue. For example, the operations and management sciences literature emphasizes performance leaving out dimensions of learning that takes place at multiple levels in the organization. In fact, an over-emphasis on learning or performance can be detrimental to the sustained success of any organizational initiatives. Thus, framing lean strategy implementation from an IHRD lens not only complements the performance oriented emphasis in the lean literature but also can provide a more accurate and credible picture for understanding how organizations can increase their likelihood of successfully implementing lean. Haggerty and Wright (2009) provide a number of organizational factors such as size, strategy, environment complexity, technology, workforce profile, task complexity as factors influencing IHRD strategy. In

GARAVAN 9781781954171 PRINT.indd 244

22/09/2017 16:32

IHRD and lean management  ­245 addition, structure and relational aspects of organization’s hierarchical arrangements need to be examined to understand how functional engagement within and between IHRD and Operations functions was achieved (Alagaraja and Egan, 2013). It is necessary to focus on the leveraging organizational structure, frequency and quality of interactions with line management, existing IHRD practices and processes to correlate employee behaviours with firm performance. Scrutinizing the total IHRD system in the context of the business and highlight the need for capable practitioners and demanding line managers for maximizing IHRD impact on firm performance. In fact, Becker, Huselid and Beatty (2009) explicitly state the power of line managers and senior executive officers in strategizing IHRD. From both perspectives, the influence of line managers and the Operations function in implementing IHRD strategy cannot be ignored (Alagaraja, 2013b). As lean is implemented over time, organizations are likely to develop and sustain strong performance characteristics as well as emphasize IHRD perspectives which emphasize a learning orientation. Practitioners and scholars involved in the lean literature often fail to emphasize the influence of multilevel learning as well as the need for structures and processes that facilitate learning (Alagaraja, 2013a). In fact, firms reporting successful lean efforts display strong implementation capability, which strengthens both the learning capacity and performance capability of the organization (for example, Toyota). Organizations that fail to assess the learning capacity or have weak learning capacities are more likely to fail in lean implementation (Alagaraja, 2014). IHRD professionals need to advance the importance of training, development, learning and growth for enhancing lean implementation. In doing so, IHRD professionals would not only impact the role and relevance of IHRD in the organization but also establish stronger linkages to organizational performance. Ignoring IHRD implications can hinder lean implementation (Piercy and Rich, 2004). The involvement of IHRD professionals in enabling lean training for employees would be valuable for enhancing the quality of lean implementation. More importantly, IHRD policies can appropriately target worker commitment, skill, engagement and motivation that are critical for operational success. Recruitment, training, enabling employee and team autonomy, linking performance with skills acquisition and reducing barriers between managers and workers contribute towards optimization of the workforce (Pil and MacDuffie, 2000). However, as authority and responsibility get pushed down to lower levels of the organ­ ization through process deployment, a delayering or flattening of structure occurs in the organization (Ahlström, 1998). Managers are reluctant in accepting the erosion of authority and control due to organizational

GARAVAN 9781781954171 PRINT.indd 245

22/09/2017 16:32

246  Handbook of international human resource development ­ e-layering (Terziovski, Sohal and Samson, 1996). IHRD professionals d should therefore consider developing lateral transitional paths for middle level managers who are important stakeholders for lean. Managing middle management resistance to lean as well as employee reluctance to change requires more than just an operational focus on performance metrics. IHRD function has an important role in addressing organizational change and development efforts emerging from lean implementation. Thus, ignoring IHRD implications of lean implementation could easily derail lean implementation progress.

CONCLUSION A systemic perspective of the organizational resources and capabilities is imperative for the success of lean. Lean practitioners are often unaware of organizational factors that facilitate lean implementation. Knowledge and the application of these factors can help practitioners leverage existing sources of organizational strength. Often, organizations lose their focus or choose the wrong interventions leading to lean failures. Each facilitating factor and their combining effect on lean have significant implications for IHRD. Even though the IHRD connection to lean has not been empirically well established, the aforementioned factors suggest the need and importance for IHRD involvement in lean implementation. There is paucity of scholarly attention investigating organ­ izational strategy with regards to specific intersections of IHRD and lean. More recently, a few articles in IHRD have begun to explore the intersections of IHRD and lean as a way to enhance the strategic role of IHRD in strategy implementation (Alagaraja and Egan, 2013; Alagaraja, 2013b). Workforce related issues such as formalized union agreements, productivity improvement, cross functional teams, job security, multi-skilling, individual acquisition of knowledge, skills and attitudes through training are important aspects of IHRD. Furthermore, the strategic value of IHRD can be more fully operationalized and realized when IHRD professionals are able to leverage these factors as a way to enhance and expand their role and involvement in lean implementation. Addressing the IHRD role, involvement and leadership in integrating these factors into daily IHRD work is crucial for operational strategy execution, which in turn impacts organizational performance.

GARAVAN 9781781954171 PRINT.indd 246

22/09/2017 16:32

IHRD and lean management  ­247

REFERENCES Abdulmalek, F.A. and Rajgopal, J. (2007). Analyzing the benefits of lean manufacturing and value stream mapping via simulation: A process sector case study. International Journal of Production Economics, 107(1), 223‒236. Achanga, P., Shehab, E., Roy, R. and Nelder, G. (2006). Critical success factors for lean implementation within SMEs. Journal of Manufacturing Technology Management, 17(4), 460–471. Ahlström, P. (1998). Sequences in the implementation of lean production. European Management Journal, 16(3), 327–347. Alagaraja, M. (2013a). HRM and HRD perspectives on organizational performance. Human Resource Development Review, 12, 117–143. Alagaraja, M. (2013b). The strategic value and transaction effectiveness of HRD: A qualitative study of internal customer perspectives. European Journal of Training and Development, 37(5), 436–453. Alagaraja, M. (2014). A conceptual model of organizations as learning-performance systems: Review of lean literature. Human Resource Development Review, 12, 117–143. Alagaraja, M. and Egan, T. (2013). The strategic value of HRD in lean strategy implementation. Human Resource Development Quarterly, 24(1), 1–27. Appelbaum, E. and Batt, R. (1994).  The New American Workplace: Transforming Work Systems in the United States. Ithaca, NY: Cornell University Press. Bamber, L. and Dale, B.G. (2000). Lean production: A study of application in a traditional manufacturing environment. Production Planning and Control, 11(3), 291–298. Becker, B.E., Huselid, M.A. and Beatty, R.W. (2009).  The Differentiated Workforce: Transforming Talent into Strategic Impact. Cambridge, MA: Harvard Business Press. Bhasin, S. and Burcher, P. (2006). Lean viewed as a philosophy. Journal of Manufacturing Technology Management, 17(1), 56–72. Bonazzi, G. and Botti, H.F. (1995). Asymmetric expectations: Cross-national coalitions in a Japanese transplant in Italy. International Executive: John Wiley & Sons. Boyer, M. and Sovilla, L. (2003). How to identify and remove the barriers for a successful lean implementation. Journal of Ship Production, 19(2), 16–20. Brau, J.C., Fawcett, S. and Morgan, L. (2007). An empirical analysis of the financial impact of supply chain management on small firms. Journal of Entrepreneurial Finance and Business Ventures, 12(1), 55–82. Chutima, P. and Kaewin, K. (2007). Using lean and business process reengineering BPR model for improving agility, in Proceedings of the IE Network Conference. Haggerty, J.J. and Wright, P.M. (2009). Strong situations and firm performance: A proposed re-conceptualization of the role of the HR function. In A. Wilkinson, N. Bacon, T. Redman and S. Snell (eds), The Sage Handbook of Human Resource Management (pp. 100‒114). London: Sage Publications. Hale, J.A. (2007). The Performance Consultant’s Fieldbook: Tools and Techniques for Improving Organizations And People. San Francisco, CA: Wiley & Sons. Hall, A. (1995). Principles and Practices of Lean Manufacturing. Lexington, KY: University of Kentucky. Hancock, W. and Zayko, M. (1998). Lean production: Implementation problems, IIE Solutions, 30(6), 38‒42. Helper, S. and Kiehl, J. (2004). Developing supplier capabilities: Market and non-market approaches. Industry & Innovation, 11(1/2), 89‒107. Hines, P., Holweg, M. and Rich, N. (2004). Learning to evolve. A review of contemporary lean thinking. International Journal of Production Management, 24(17), 994‒1011. Lathin, D. (2001). Lean manufacturing. American Society for Quality Journal, December, 2–9. Lifvergren, S., Gremyr, I., Hellström, A., Chakhunashvili, A. and Bergman, B. (2010). Lessons from Sweden’s first large-scale implementation of Six Sigma in healthcare.

GARAVAN 9781781954171 PRINT.indd 247

22/09/2017 16:32

248  Handbook of international human resource development Operations Management Research Advancing Practice through Theory. doi:10.1007/ s12063-010-0038-y. Mahapatra,  S.S.  and  Mohanty,  S.R.  (2007).  Lean manufacturing in continuous process industry: An empirical study. Journal of Scientific & Industrial Research, 66(1), 19–23. Motwani, J., Kumar, A. and Antony, J. (2004). A business process change framework for examining the implementation of Six Sigma: A case study of Dow Chemicals. The TQM Magazine, 16(4), 273‒283. Piercy, N.C. and Rich, N. (2004). Strategic marketing and operations relationships: The case of the lean enterprise. Journal of Strategic Marketing, 12(3), 145‒161. Pil, F.K. and MacDuffie, J.P. (2000). What makes transplants thrive: managing the transfer of ‘best practice’ at Japanese auto plants in North America.  Journal of World Business, 34(4), 372‒391. Riis, J., Mikkelsen, H. and Anderson, J. (2008). Orchestrating lean implementation. In E.  Koch and R. Tomasz (eds), Lean Business Systems and Beyond (pp. 285‒293). New York: Springer. Scherrer-Rathje, M., Boyle, T.A. and Deflorin, P. (2009). Lean, take two! Reflections from the second attempt at lean implementation. Business Horizons, 52(1), 79‒88. Shah, R. and Ward, P.T. (2003). Lean manufacturing: Context, practice bundles, and performance. Journal of Operations Management, 21(2) 129‒149. Soderquist, K. and Motwani, J. (1999). Quality issues in lean production implementation: A case study of a French automotive supplier. Total Quality Management, 10(8), 1107‒1122. Sohal, A. and Eggleston, A. (1994). Lean production: experience amongst Australian organ­ isations. International Journal of Operations & Production Management, 14, 1‒17. Spear S. and Bowen H.K. (1999). Decoding the DNA of the Toyota Production System. Harvard Business Review, 77, 97–106. Swanson, R.A. and Holton, E.F. (2009). Foundations of Human Resource Development. San Francisco, CA: Berrett-Koehler. Taira, K. (1996). Compatibility of human resource management, industrial relations, and engineering under mass production and lean production: An exploration. Applied Psychology: An International Review, 45(2), 97‒117. Terziovski, M., Sohal, A. and Samson, D. (1996). Best practice implementation of total quality management: Multiple cross case analysis of manufacturing and service operations. Total Quality Management, 7(5), 459‒481. Timans, W., Antony, J., Ahaus, K. and van Solingen, R. (2012). Implementation of lean Six Sigma in small- and medium-sized manufacturing enterprises in the Netherlands. Journal of the Operational Research Society, 63, 339–353. Valerdi, R., Nightingale, D. and Blackburn, C. (2008). Enterprises as systems: Context, boundaries, and practical implications.  Information, Knowledge, Systems Management, 7(4), 377‒399. van Hoek, R.I., Harrison, A. and Christopher, M. (2001). Measuring agile capabilities in the supply chain. International Journal of Operations & Production Management, 21(1/2), 126‒148. White, R.E., Ojha, D. and Kuo, C. (2009). A competitive progression perspective of JIT systems: Evidence from early US implementations. International Journal of Production Research, 48(20), 6103‒6124. Womack, J.P. and Jones, D.T. (1996). Lean Thinking. New York: Simon & Schuster. Worley, J.M. and Doolen, T.L. (2006). The role of communication and management support in a lean manufacturing implementation. Management Decision, 44(2), 228–245.

GARAVAN 9781781954171 PRINT.indd 248

22/09/2017 16:32

12. IHRD and strategic learning capability Hanna Moon and Wendy E.A. Ruona

INTRODUCTION The global environment offers many exciting, and sometimes unexpected, opportunities as well as potential threats for modern organizations. Strategy is the key to sustainability for organizations; however little is predictable, and few organizations can guarantee their success or long-term survival. As organizations face uncertainties, they must become increasingly agile to respond quickly and efficiently to customers’ needs and to develop and implement innovative and competitive strategies that foster a unique and valuable position in the industry (Porter, 1996). Outstanding companies continually create wise strategies and develop the processes to actually achieve them – indeed, this becomes embedded in the DNA of today’s most successful companies (Collins, 2001). Organizations are even more challenged to develop global strategies. The global context requires a deep understanding of complex political and economic dynamics (Porter, 1998) and cultural differences in multinations (Ghemawat, 2011). Running a business in another nation or in multiple nations introduces many tenuous challenges such as complex trade deals, relations between the national government and the organ­ ization, different laws and norms related to the workforce, imbalanced power between nations and stakeholders, and a multitude of cultural differences. These challenges (and many others too numerous to list here) must be carefully navigated and will all deeply influence the strategy process. To innovatively grow in the global marketplace, organization leaders need improved ways to understand and approach the complex external environment (Szulanski and Amin, 2001) and to cope with increasing uncertainties. Furthermore, strategy making is no longer an isolated, onetime event conducted solely (or even largely) by executives. Narrowing the gap between a strategic decision and an effective implementation of strategy requires flat hierarchies and “empowerment of the organizational periphery” (Deiser, 2009, p. 72). Thus, the very nature of strategic planning and management is shifting in organizations today. International human resource development (IHRD) professionals must  shift, too, and innovate how we think about strategic processes in 249

GARAVAN 9781781954171 PRINT.indd 249

22/09/2017 16:32

250  Handbook of international human resource development ­ rganizations so we can effectively prepare leaders to engage in them as o well as help to facilitate them. A strategic perspective on IHRD practices that brings value to the firm can help organizations gain a global competitive advantage (Garavan, 2007). Strategic HRD in an international context is viewed as a proactive, system-wide intervention, linked to strategic planning and cultural change (Wilson, 2012). Supporting an organ­ ization’s strategy process is one of the important functions of IHRD. This chapter aims to explore one of the emerging concepts in our field – strategic learning – so that IHRD professionals can be better positioned to nurture an organization’s strategic learning capability. To accomplish that, implementing IHRD interventions is imperative for successful strategic planning and implementation. Applying only an analytical approach towards strategic planning and implementation is no longer viable – both analytical and intuitive approaches should be applied in the strategic process, and then learning plays its role to facilitate innovative and creative thinking in the process. Various strategic learning activities take place in the strategy process, and those can be embedded as organizational competencies. IHRD should help organizations craft better strategies and transform their strategic processes so that they can become more agile and ambidextrous in global competition. This chapter introduces the notion of strategic learning capability, discusses the strategic learning process, and explores the challenges and opportunities related to all of this. The chapter concludes by outlining a few specific implications for IHRD research and practice.

STRATEGIC LEARNING CAPABILITY Organizations are goal-based systems – and it is an organization’s learning activities that can help reduce differences between what was expected and what was achieved in the global market. Learning bridges the gaps that naturally emerge in organizational routines and targets. Strategic learning capability is the organization’s capacity to retool rapidly to create and execute new strategy through learning at the individual and system levels in response to changes and uncertainties in complex environments. Strategic learning capability is a concept that focuses on the ability of the organization (and its leaders/members) to engage in specific tasks or actions around the strategic learning process. Moon, Ruona and Valentine (2017) have worked to identify the specific dimensions of strategic learning capability, however, a rigorous discussion of those dimensions is beyond the scope of this chapter. For this chapter, we’ll focus on the basic notions that strategic learning capability involves

GARAVAN 9781781954171 PRINT.indd 250

22/09/2017 16:32

IHRD and strategic learning capability  ­251 (a) building the adaptive capacity of an organization so that the organ­ ization can shift and adjust through strategic complexity and (b) successfully navigating the strategic learning process, which is described in the next section.

STRATEGIC LEARNING Scholars in varied disciplines have increasingly focused on this relatively new idea of strategic learning in the past 10‒15 years. Strategy guru Henry Mintzberg (1987) helped to stimulate this important focus in his call to focus on emergent, rather than deliberate, strategy and to emphasize learning in the strategy process. Since then various models have been generated to explain and conceptualize strategic learning – at the individual, team/group, and organizational levels. Some scholars (Casey and Goldman, 2010; Sloan, 2006) have focused on fostering strategic thinking at the individual level, and others (Crossan, Lane and White, 1999) have focused on the way in which individual learning becomes organ­ izational learning. Grundy (1994) proposed a strategic learning model as a ­problem-solving tool that can be used for all three levels. Pietersen’s model (2002; 2010) was developed to foster personal growth as well as organizational renewal. After reviewing and synthesizing the strategic learning literature (see Moon and Ruona, 2011 and Moon and Ruona, 2012 for detailed reviews), we have come to understand strategic learning to be a dyadic process of learning (Mintzberg, 1987) and unlearning (Argyris and Schon, 1996; Hedberg, 1981; Tsang and Zahra, 2008) repeatedly during strategy generation, formulation, and execution (see Figure 12.1). This process involves both strategy removal and the adoption of new strategy – as organizational leaders and stakeholders engage in sense-making and decision-­ making. It is important to note that the learning and unlearning processes are happening continuously throughout the strategy process and in ‘messy’ and often unpredictable ways – there is little that is orderly, linear, or sequential about the learning process (as has been emphasized by many scholars such as Pietersen, 2002; 2010; Siren, 2012; Thomas, Sussman and Henderson, 2001). As Figure 12.1 depicts, we believe there are at least four key processes happening throughout the strategic learning process that are worthy of focus for HRD professionals trying to nurture strategic learning capability. These are (a) sense-making, (b) decision-making, (c) learning, and (d) unlearning. These are each discussed below.

GARAVAN 9781781954171 PRINT.indd 251

22/09/2017 16:32

252

GARAVAN 9781781954171 PRINT.indd 252

22/09/2017 16:32

sensemaking

Generation sensemaking

Formation

Strategy

Unlearning

sensemaking

sensemaking

Execution

Strategy

sensemaking

Decision-Making

sensemaking

Strategy

Figure 12.1  Strategic learning process

Source:  Moon and Ruona (2015).

sensemaking

Learning

IHRD and strategic learning capability  ­253

SENSE-MAKING AND DECISION-MAKING Sense-making and decision-making activities are tightly coupled in the strategic learning process (see Figure 12.1). Sense-making helps organ­ izational leaders to understand all that’s going on around them. Decisionmaking is necessary to act on what sense is made. Decision-making without valid information through sense-making is unimaginable. Sense-making Sense-making refers to those processes of interpretation and meaning production (Brown, 2000) which involve turning circumstances into a situation that is explicitly comprehensible in words and will be turned into action (Weick, Sutcliffe and Obstfeld, 2005). The sense-making phenomenon can be described as individuals’ sharing meanings they have jointly negotiated. Accordingly, individuals and groups collectively reflect on and interpret phenomena and come up with an inter-subjective description (Brown, 2000). Strategic sense-making is a process of scanning, interpreting, and taking action on organizational information (Pandza and Thorpe, 2009). The process is connected through a feedback loop, and scanning and interpretation are the examination of experiences learned through action. Scanning and interpretation are central in sense-making (Daft and Weick, 1984). The actual experiences are specific and concrete, whereas what is learned from the experience is abstract and encyclopedic. Thus, sense-making engages concrete experiences as well as abstract knowledge (Weick, Sutcliffe and Obstfeld, 2005). Decision-making Researchers have investigated the process of decision-making (Papadakis, Lioukas and Chambers, 1998) and the concepts required to understand decision-making (Nutt, 1993) for many years. Organizational decisionmaking is “the execution of a choice made in terms of objectives from among a set of alternatives on the basis of available information” (Cyert and March, 1963, p. 19). Nutt (1993) describes the decision process as “a stream of action-taking steps that begins with claims by stakeholders drawn from signals that seem important and ends when a decision has been adopted” (Nutt, 1993, p. 227). Drucker (1967) refers to decisionmaking as a systematic process with clearly defined elements and in a distinct sequence of steps, which is clearly illustrated into a five-step decision process: (1) establish a context for success, (2) frame the issue properly, (3) generate alternatives, (4) evaluate the alternatives, and (5) choose the

GARAVAN 9781781954171 PRINT.indd 253

22/09/2017 16:32

254  Handbook of international human resource development alternative that appears best. In essence, decision-making involves making implicit choices into explicit ones, leading to specific decision-making outcomes. The Interplay of Rationality and Intuition Whereas sense-making requires interpretation and creative synthesis to make meaning from the data, good decision-making is said to be highly rational and based on logic, data, and evidence. Thus, the interplay between intuition and rationality in strategic learning becomes very interesting. Scholars (Hart, 1992; Slevin and Covin, 1997) have heavily discussed rationality. Decisions are mostly made as a result of decision maker’s cognition, “because individuals approach complex decisions with previously constructed heuristics or cognitive models that are reflected in personal characteristics” (Hitt and Tyler, 1991, p. 332). Strategies for exploitation rely on calculated rationality, which is the basis of strategic management (Levinthal and March, 1993). Calculated rationality deals with “the information availability”, “the information processing capability of organizations”, and “the preference axioms of rationality” (Levinthal and March, 1993, p. 96). Rational behavior reflects the integration of emotional and cognitive information so that individuals can bring a broad spectrum of additional emotional information into the decision process (De Martino et al., 2006). The interesting interplay lies in “the experience of cognition [that] is anchored in the role of experience in interpretation of and response to changes in the environment” (Mitchell, Shepherd and Sharfman, 2011, p. 686). However, several contextual factors (for example, power effect, ample information and leadership style) that are inter-related around the decision-making process make rationalist decision-making more challenging. Therefore, the way in which intuition plays into the decision-making process becomes salient. Understanding intuition is important both at the individual and the collective levels in terms of sense-making, interpretation, and the development of shared meaning (Sadler-Smith, 2008). It is important to note that individuals, not organizations, are the agents who can intuit. From the rational normative model of strategy formulation, decision-making depends on rational and analytical processes (Hitt and Tyler, 1991), but this approach has ignored individual factors affecting decision-making (for example, creativity, exploration and understanding discontinuity). It is important to enlighten the strategic choices that individuals make and the generation of intuition in the process of integrating pieces of informa-

GARAVAN 9781781954171 PRINT.indd 254

22/09/2017 16:32

IHRD and strategic learning capability  ­255 tion. Intuition can be created many ways, such as through journaling and mind-mapping exercises (Sadler-Smith and Burke, 2009).

UNLEARNING Strategic learning requires organizational unlearning. Unlearning is selectively letting go of patterns or routines from the past (Hamel and Prahalad, 1994; Mintzberg, 1987). The intentional discarding of routines is unlearning and the unintentional loss of routine is forgetting. Based on a review of definitions, Tsang and Zahra (2008) reveal that organizations discard four types of knowledge: obsolete, misleading, redundant, and unsuccessful. It is important to note that unlearning primarily emphasizes “a decrease in the range of potential behaviors, rather than to indicate a qualitatively different process” (Huber, 1991, p. 104). That is, unlearning is (not so simply) removing patterns or routines, but rather it is replacing them with better ones that would be more useful for strategic success. Starbuck and Hedberg (2001) identify the prolonged success of an organization as a hindrance to radically unlearning and strategically reinventing. Moreover, things that prevent companies from creating the future are “an installed base of thinking – the unquestioned conventions, the myopic view of opportunities and threats, and the unchallenged precedents that comprise the managerial frame” (Hamel and Prahalad, 1994, p. 61). It is more difficult to unlearn “if an organization’s cognitive structures are firmly established and integrated” (Hedberg and Wolff, 2001, p. 539), and changing cognitive structures is necessary to reorient organ­ izations (Nystrom and Starbuck, 2004). Factors such as change of leadership (Hedberg and Wolff, 2001) facilitate unlearning because the existing mental model of leadership can be interrogated and more readily replaced. Another method discussed in the strategy literature related to unlearning is the act of challenging imagination – that is challenging decision makers’ assumptions and mental models to help them delete a function of past success from a specific paradigm (Gibbert, 2004). For example, under pressure due to low-end models from Japanese companies, top management in Porsche decided to discontinue any entry-level cars (Hamel and Prahalad, 1989).

LEARNING The strategy process includes many activities such as scanning the external environment; paying attention to customers; exploring new ­opportunities;

GARAVAN 9781781954171 PRINT.indd 255

22/09/2017 16:32

256  Handbook of international human resource development generating strategic choices; reflecting on risky issues and dialoguing about them; responding to signals from the market; and being open to unexpected situations in the strategy execution (Moon, Ruona and Valentine, 2017). During all of these kinds of activities there is a wide array of different kinds of learning going on. A few key scholars (Anderson, Covin and Slevin, 2009; Crossan and Berdrow, 2003; Siren, 2012) have focused on the way in which organizational learning is connected to strategic learning. While this is certainly important, especially to foster the culture that cultivates strategic learning, it is also important for HRD scholars to recognize the other specific kinds of learning that are involved in the processes of strategy generation, formation, and implementation. During strategy generation, learning fosters creative and innovative thinking (Szulanski and Amin, 2001). During strategy formation, learning facilitates strategic dialogue/conversation (Sloan, 2006; Voronov and Yorks, 2005). Some scholars (Casey and Goldman, 2010) have focused on learning in the cognitive domain as related to strategic thinking, and others (Kuwada, 1998; Thomas, Sussman and Henderson, 2001) have highlighted strategic knowledge formation through learning. Strategy implementation involves learning from trial-and-error by responding to challenges during the implementation process (Argyris, 1989).

FOSTERING STRATEGIC LEARNING CAPABILITY IN ORGANIZATIONS Not many organizations likely have an organizational learning system that proactively fosters strategic learning (Kuhn, 2009). The importance of strategic learning is just being acknowledged by many organizations; and, even those organizations that perceive it as important surely discover how difficult it is to engage in the kind of deep learning processes discussed above during the strategy process (generation, formation, and execution). Strengthening an organization’s capacity to ‘learn through’ strategy requires the organization to consciously invest in processes and supports. This section suggests a few specific ways that HRD professionals can help individuals and organizations with this.

GARAVAN 9781781954171 PRINT.indd 256

22/09/2017 16:32

IHRD and strategic learning capability  ­257

APPLYING STRATEGIC LEARNING MODELS TO BUILD STRATEGIC LEARNING CAPABILITY How to retool rapidly as an organization is a challenging task for organ­ izations in the global competition, and thus strategic learning models can be helpful in terms of providing the processes or methods to foster and embed strategic learning capability. In 2012, we conducted an analysis of existing strategic learning models and found six valuable models, each emphasizing different aspects related to strategic learning and each with its own underlying theories and processes (see Moon and Ruona, 2012 for more information about each). For instance Pietersen’s (2010) strategic learning model provides practical guidelines with four action steps – learn, focus, align, and execute – that help create a winning strategy. And, Sloan’s (2006) three-stage model – preparation, evaluation, and reevaluation – is useful to facilitate strategic thinking at the individual level. That analysis led us to identify the characteristics that seem critically important to the process of strategic learning and informed our development of the model introduced earlier in this chapter (Figure 12.1). Regardless of what model an IHRD professional chooses to use, we’re certain that a model such as these is necessary to operationalize and more deeply understand the multiple steps, activities, and types of learning that are happening as leaders engage in a more conscious and generative learning during strategy generation, formation, and execution.

HELPING INDIVIDUALS AND ORGANIZATIONS STRATEGICALLY LEARN Strategic thinking is a prerequisite to strategic planning, which allows leaders to create a mental blueprint before designing an organization’s future (Zabriskie and Huellmantel, 1991). Strategic thinking can open up possibilities to challenge assumptions and generate creative ideas regarding companies’ value proposition. Mintzberg (1994b) highlighted that strategic thinking is more appropriate than analytic thinking for strategic planning, which implies that strategic planning is more of a synthesis than an analysis. Thus, the way in which we can stimulate strategic learning and thinking is an important agenda. Some techniques have been shown to be effective to facilitate learning to think strategically (Easterby-Smith and Davies, 1983), and a few of these are discussed below.

GARAVAN 9781781954171 PRINT.indd 257

22/09/2017 16:32

258  Handbook of international human resource development Action Learning Action learning is a powerful tool to facilitate strategic thinking. Kuhn (2009) examined how action learning facilitated strategic thinking of leaders at the senior-level through an executive development programme. This research identified sub-dimensions of the cognitive domain such as sense-making, strategic thinking, critical thinking, divergent thinking, conceptual capacity, and malleable learning orientation because developmental experiences unfold in each domain. Kuhn’s study found that these kinds of developmental experience helped leaders to come up with an innovative business model or catalyze an industry transformation, but the work was not fully supported by organization’s rewards and recognition systems (Kuhn, 2009) and, thus, often fell short of being fully realized. Therefore, as it was discovered in Kuhn’s study, HRD interventions need to be integrated into HR and business practices to enhance strategic thinking and channel that into generating better strategy in the long-run. Simulations It is difficult to understand how organizations learn through complexity, but a simulation can unfold the organizational processes that yield various outcomes (Mezias and Glynn, 1993). Simulations can be used to clarify and work through innovative ideas and to help organizational leaders see potential intended and unintended outcomes (Mezias and Glynn, 1993). Leaders take action when mental simulation validates the plausibility of a hypothesis, and if a mental simulation fails to confirm the hypothesis, organizational leaders will imagine new possibilities and test the validity of those (Rudolf, Morrison and Carroll, 2009). This kind of imitation exercise fosters strategic thinking, which provides special insight to strategic planners. Dialogue/Strategic Conversation Strategic conversation is a way to enhance strategic learning capability and vice versa (Sloan, 2006). An organization with a strong strategic learning capability will create a space for constructive discourse (Deiser, 2009). This requires organizational leaders to engage in real dialogue – “a discipline of collective thinking and inquiry, a process of transforming the quality of conversation, and, in particular, the thinking that lies beneath it” (Sloan, 2006, p. 107). This type of conversation can occur formally and informally by discussing and debating strategic challenges and opportun­ ities (van der Heijden, 1996).

GARAVAN 9781781954171 PRINT.indd 258

22/09/2017 16:32

IHRD and strategic learning capability  ­259 Action Inquiry Action inquiry can be useful to delve deeply into the assumptions that underlie strategic challenges. Inquiry “constructs new knowledge, fosters learning, and develops shared meaning” (Sloan, 2006, p. 117). Fisher, Rooke, and Torbert (2001) provide four parts of speech that can be used to foster action inquiry and conversational experiments. These each involve: ●

Framing: Explicitly stating what the purpose is for the present occasion, what the dilemma is that needs to be resolved, what assumptions are shared or not shared (and need to be tested out loud to be sure). ● Advocating: Explicitly asserting an option, perception, feeling, or proposal for action in relatively abstract terms. ● Illustrating: Telling concrete stories to illustrate assumptions and perceptions more fully so others can see more clearly and work towards more shared understanding. ● Inquiring: Questioning others in order to learn something from them. Questioning allows planning groups to uncover the problems layered around the core issue to explore the solution (Sloan, 2006). Scenarios and Scenario Building Scenarios are a powerful mechanism that can help to shift the thinking of leaders within organizations (Wack, 1985). A scenario is “a description of a possible future state of an organization’s environment” (Bunn and Salo, 1993, p. 292). Working with scenarios can stimulate and guide conversation, and, thus, increase learning opportunities through “experiment[ing] with ideas and perceptions by taking facts and data into imagined or speculative worlds” (Chermack, 2011, p. 33). Well-developed scenarios act as a potential guide to explore plausible futures (Weick, 2005) and to generate new ideas related to those potential futures (van der Heijden, 1996). In this way, scenarios are a tool to facilitate “a change in the assumptions and expectations of decision-makers about what the future can possibly hold” (Chermack, 2007, p. 4). This helps leaders to become more proactive than reactive as they face the future (Zabriskie and Huellmantel, 1991). Scenario planning is a more specified activity than management development such as “games, simulation, and role-playing exercises” (Bunn and Salo, 1993, p. 292). Many organizations are increasingly using this methodology to enhance their long-range planning. Companies such as Royal Dutch/Shell that have used scenario planning for strategy development have been more effective at maintaining their fit to external e­ nvironment

GARAVAN 9781781954171 PRINT.indd 259

22/09/2017 16:32

260  Handbook of international human resource development (Chermack, 2011; de Geus, 1988; Schwartz, 1991). Therefore, embedding scenario planning as a part of the informal and formal strategy development process is ideal so that strategic learning becomes an ongoing organ­ izational process (van der Heijden, 1996).

LEARNING CULTURES AND HRD INTERVENTIONS As a condition for strategic learning to occur, a learning culture (Watkins and Marsick, 1993) is critical because it enables individuals to take the initiative and develop in their own strategic thinking process (Korte and Chermack, 2006). Furthermore, corporate culture influences organizational actions that involve behavioral and cognitive development (Fiol and Lyles, 1985). And, Goh (2003) evidences in his empirical study that an experimenting culture enhances organizational learning capability. However, building a learning culture is a long-term and systemwide intervention. We can easily see cultural artifacts in organizations, but espoused values and underlying assumptions are deeply embedded (Schein, 1992). These espoused values guide people’s behaviour in organizations, and are hard to change. Therefore, a learning culture should reflect a theory-in-use that can influence individuals’ behaviour. Organizations enacting a learning culture will enhance strategic learning capability and strategic actions. Ultimately, it is expected that a learning organization becomes a strategic learning organization. Empower People Towards a Collective Vision Building a shared vision (Goh, 2003; Senge, 1990) through all levels of employees will empower them to be involved in decision-making. Watkins and Marsick (1993) see empowerment as interactive and active in that employees and leaders engage in a dialogue, which reinforces mutual interests. Empowerment allows individuals to do something with power. It is important to empower employees so they feel the energy and confidence to act, appropriate to their role and developmental stage. Collective vision means that individuals participate in creating organizational vision. Newer models of collective vision involve moving away from creating a vision at the top and diffusing it down the hierarchy, and instead emphasize visions emerging from ‘the bottom’ and all over the organization to contribute towards higher-level goals. People become more engaged and collaborate when they are empowered to create something their own. And, leadership is critical in order to move people towards a collective vision. Systemic support is recommended to generate strategic insight and this

GARAVAN 9781781954171 PRINT.indd 260

22/09/2017 16:32

IHRD and strategic learning capability  ­261 kind of constructive action (Nicolaides and Yorks, 2009). Action plans are suggested as follows: ●

Empower individuals to make decisions on important matters. Institutionalize the empowerment process in order to clarify and support individual decision-making at the appropriate level. ● Build informal groups (for example, communities of practice) and meetings to facilitate communication. ● Build internal social networks to diffuse corporate visions and values. ● Build various value-sharing channels to spread the corporate vision (for example, newspapers, board, and so on). ●

Provide Strategic Leadership for Learning To support this kind of holistic and systemic learning environment, the role of the top leadership is important. When leaders identify issues that require creative thinking, they need to find multiple ways to encourage new perspectives on these issues (Beinhocker and Kaplan, 2002, p. 56). Research shows that effective strategic leadership mediates learning components in other dimensions, which indicates that the degree of leaders’ understanding in the relationship between the strategic role of learning and performance and that of knowledge creation affects the successful implementation of a learning culture (Watkins and Marsick, 2003; Yang, Watkins and Marsick, 2004). Leadership should provide effective feedback to employees so that individuals and teams can learn during the process. In order to facilitate learning, leaders should maintain their role as mentors, helpers, or coaches. Leaders are the ‘chief motivation officers’ and are critically important to foster strategic thinking (Pietersen, 2010, p. 160). At the same time, leaders should be open-minded to accept criticism from their employees (Goh, 1998). If leaders want to help their employees to learn to think strategically, they must be change agents who can advocate, support, and adapt.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE The challenge for organizations lies in how to provide the context and channel for great strategy to emerge. This precedes innovation in organ­ izational strategy, processes, structure, and culture. Goh’s (1998) framework of the strategic building blocks of a learning organization provides

GARAVAN 9781781954171 PRINT.indd 261

22/09/2017 16:32

262  Handbook of international human resource development three ways to approach organizational challenges – transfer of knowledge, an experimenting organizational culture, and shared leadership and involvement. First, to transfer knowledge to performers on the job or to other parts of an organization to create new knowledge, the mechanisms and systems should be maintained to support the process. Second, organizational culture encourages employees to implement their new strategies through an experimenting culture. Creating and supporting the atmosphere that values experimentation is important. Lastly, the role of leadership is critical in strategic learning in their role as a change agent, facilitator, coach, or mentor affects employees’ decision-making processes and strategy implementation. From a critical management perspective, this framework emphasizes the power effect and negotiation occurring in communication channels (Vince, 2004; Voronov and Yorks, 2005). The power differential among organizational members can be an inhibitor for their learning and can influence implementation of strategic actions. Therefore, more attention to the aforementioned aspects is needed in designing organizational interventions to support strategic learning. Organizations face strategic challenges during the strategy execution, and support from the key leadership plays a critical role in that process. If leadership does not have foresight or strategic learning capability to envision an organization’s future, the strategy execution might not be successful (McGuire and Rhodes, 2009), even if the management systems and structures in the organization are aligned. Shifting the mindset and belief systems of leadership towards the strategy level is important; as is increasing awareness of why and how leaders make decisions as this will eventually affect strategy execution. The impact of strategic leadership development has been emphasized in terms of making sense of and giving meaning to signals from external environment (Boal and Schultz, 2007; Jansen, Vera and Crossan, 2009). However, clearly nurturing strategic learning capability and processes in organizations requires more from organizational leaders. Indeed, an organization’s capacity to learn changes depending on the types of behaviors that leadership enact (Jansen, Vera and Crossan, 2009). For example, transformational leadership behaviour is related to exploratory innovation, whereas transactional leadership behaviour is related to exploitative innovation. All of this affects the way in which strategic leaders can contribute to the development of different types of innovations during turbulent times. Effective strategic leadership can provide a sense of equilibrium between stability and disorder (Boal and Schultz, 2007), even as increasingly uncertain futures unfold. Strategic learning capability creates the opportunity for organizations

GARAVAN 9781781954171 PRINT.indd 262

22/09/2017 16:32

IHRD and strategic learning capability  ­263 so that leaders can make better decisions in turbulent times and become proactive to the anticipation of internal and external needs. In order to make solid decisions, Sadler-Smith (2008) suggests that uncertainty should be reduced and tolerated. Uncertainty can be reduced by identifying and collecting the data needed for decision-makers. Making a viable data incorporates analysis as well as synthesis. Strategic learning capability facilitates learning in the process of data analysis and data synthesis. In this situation, it is important to create unstructured situations rather than tightly-structured situations for intuition to chime in. Strategic learning capability will help diminish uncertainties and complexities by collecting valid information for informed decisions and interpreting experiences. Sadler-Smith (2008) elucidates several ways to tolerate uncertainty in a global context. Experienced decision-makers can decide whether to delay the decision or to make a move within the limited information. They can also make reasonable assumptions or educated estimates or admit that uncertainty is inevitable in some situations (Sadler-Smith, 2008). Building scenarios that play out all the possibilities in the future can make decision makers ready for unexpected change. Scenario exercise is a powerful learning tool to build tolerance towards uncertainty during the strategy process. In international business, strategic learning capability creates opportun­ ities to enhance agility and responsiveness of an organization. Organizations strategically learn through exploring external environments and identifying various needs of customers. They can transform into agile and responsive organizations in terms of organizational structure, culture, and processes through the strategic learning process so that they can reshape themselves as the global business shifts.

CONCLUSION Strategic learning capability highlights important aspects needed in order to generate, formulate, and implement strategy in the global business environment. This overview of strategic learning and the need for strategic learning capability was introduced to help organizations begin to tackle strategic challenges in global competition. Building strategic learning capability allows organizations to shift and adjust through strategic complexity. As a long-term adaptive capability, strategic learning capability fosters learning and unlearning iteratively in the strategic planning and implementation process in that organizational learning and development can be reinvented and realigned with

GARAVAN 9781781954171 PRINT.indd 263

22/09/2017 16:32

264  Handbook of international human resource development ­rganizational strategy. Strategic learning process incorporates senseo making and decision-making. Through the process of sense-making  – scanning, interpreting, and taking action – organizations gather valid information to help organizational leaders make decisions. With rationalist thinking, information can be analyzed, but it could be synthesized as well as using intuition. The strategic learning process introduced in this chapter explores multiple types of learning happening during the strategy process in detail so that they can be facilitated through various interventions. Successful organizational adaptation through strategic learning capability can be achieved through action learning, simulations, dialogue, strategic conversation, action inquiry, scenarios, and a strong learning culture across different cultures. This chapter demonstrates how HRD can bring value to the strategy process in response to international business context. The aforementioned HRD interventions will foster building strategic learning capability regardless of global diversities of organizations.

REFERENCES Anderson, B.S., Covin, J.G. and Slevin, D.P. (2009). Understanding the relationship between entrepreneurial orientation and strategic learning capability: An empirical investigation. Strategic Entrepreneurship Journal, 3(3), 218‒240. Argyris, C. (1989). Strategy implementation: An experience in learning. Organizational Dynamics, 18(2), 5‒15. Argyris, C. and Schon, D.A. (1996). Organizational Learning II: Theory, Method, and Practice. Reading, MA: Addison-Wesley Publishing. Beinhocker, E.D. and Kaplan, S. (2002). Tired of strategic planning? Many companies get little value from their annual strategic-planning process. It should be redesigned to support realtime strategy making and to encourage ‘creative accidents’. The McKinsey Quarterly, 49‒58. Boal, K.B. and Schultz, P.L. (2007). Storytelling, time, and evolution: The role of strategic leadership in complex adaptive systems. The Leadership Quarterly, 18(4), 411‒428. Brown, A.D. (2000). Making sense of inquiry sensemaking.  Journal of Management Studies, 37(1), 45-75. Bunn, D.W. and Salo, A.A. (1993). Forecasting with scenarios.  European Journal of Operational Research, 68(3), 291‒303. Casey, A.J. and Goldman, E.F. (2010). Enhancing the ability to think strategically: A learning model. Management Learning, 41(2), 167‒185. Chermack, T.J. (2007). Disciplined imagination: Building scenarios and building theories. Futures, 39, 1‒15. Chermack, T.J. (2011). Scenario planning in Organizations: How to Create, Use, and Assess Scenarios. San Francisco, CA: Berrett-Koehler Publishers. Collins, J. (2001). Good to Great. New York: Harper Collins Publishers. Crossan, M.M. and Berdrow, I. (2003). Organizational learning and strategic renewal. Strategic Management Journal, 24(11), 1087‒1105. Crossan, M.M., Lane, H.W. and White, R.E. (1999). An organizational learning framework: From intuition to institution. Academy of Management Review, 24(3), 522‒537. Cyert, R.M. and March, J.G. (1963). A Behavioral Theory of the Firm. Englewood Cliffs, NJ: Prentice Hall.

GARAVAN 9781781954171 PRINT.indd 264

22/09/2017 16:32

IHRD and strategic learning capability  ­265 Daft, R.L. and Weick, K.E. (1984). Toward a model of organizations as interpretation systems. Academy of Management Review, 9, 284‒295. de Geus, A.P. (1988). Planning as learning. Harvard Business Review, March–April, 70‒74. De Martino, B., Kumaran, D., Seymour, B. and Dolan, R.J. (2006). Frames, biases, and rational decision-making in the human brain. Science, 313(5787), 684‒687. Deiser, R. (2009). Designing the Smart Organization: How Breakthrough Corporate Learning Initiatives Drive Strategic Change and Innovation. San Francisco, CA: Jossey-Bass. Drucker, P.F. (1967). The effective decision. Harvard Business Review, 45(1), 92–98. Easterby-Smith, M. and Davies, J. (1983). Developing strategic thinking. Long Range Planning, 16(4), 39‒48. Fiol, C.M. and Lyles, M.A. (1985), Organizational learning. Academy of Management Review, 10(4), 803‒810. Fisher, D., Rooke, D. and Torbert, B. (2001). Personal and Organisational Transformations: Through Action Inquiry. London: Edge/Work Press. Garavan, T.N. (2007). A strategic perspective on human resource development. Advances in Developing Human Resources, 9(1), 11‒30. Ghemawat, P. (2011). World 3.0: Global Prosperity and How to Achieve It. Boston, MA: Harvard Business Press. Gibbert, M. (2004). Crafting strategy imaginatively: Lessons learnt from Siemens. European Management Journal, 22(6), 669‒684. Goh, S.C. (1998). Towards a learning organization: The strategic building blocks. Advanced Management Journal, 63(2), 15‒22. Goh, S.C. (2003). Improving organizational learning capability: Lessons from two case studies. The Learning Organization, 10(4), 216‒227. Grundy, T. (1994). Strategic Learning in Action: How to Accelerate and Sustain Business Change. New York: McGraw-Hill. Hamel, G. and Prahalad, C.K. (1989). Strategic intent. Harvard Business Review, 148‒161. Hamel, G. and Prahalad, C.K. (1994). Competing for the Future. Boston, MA: Harvard Business School Press. Hart, S.L. (1992). An integrative framework for strategy-making process, The Academy of Management Review, 17(2), 327‒351. Hedberg, B. (1981). How organizations learn and unlearn, in P.C. Nystrom and W.H. Starbuck (eds), Handbook of Organization Design (Vol. 1, pp. 3‒27). London: Oxford University Press. Hedberg, B. and Wolff, R. (2001). Organizing, learning, and strategizing: From construction to discovery, in M. Dierkes (ed.), Handbook of Organizational Learning and Knowledge (pp. 536‒556). Oxford: Oxford University Press. Hitt, M.A. and Tyler, B.B. (1991). Strategic decision models: Integrating different perspectives. Strategic Management Journal, 12(5), 327‒351. Huber, G.P. (1991). Organizational learning: The contributing processes and the literatures. Organization Science, 2(1), 88‒115. Jansen, J.J., Vera, D. and Crossan, M. (2009). Strategic leadership for exploration and exploitation: The moderating role of environmental dynamism. The Leadership Quarterly, 20(1), 5‒18. Korte, R.F. and Chermack, T.J. (2006). Changing organizational culture with scenario ­planning. Future, 39, 645‒656. Kuhn, J.S. (2009). Using action learning to develop the cognitive dimensions of strategic innovation: Program design, methodological, and person-environment considerations. Doctoral dissertation, Teachers College, Columbia University. Kuwada, K. (1998). Strategic learning: The continuous side of discontinuous strategic change. Organization Science, 9(6), 719‒736. Levinthal, D.A. and March, J.G. (1993). The myopia of learning. Strategic Management Journal, 14, 95‒112. McGuire, J.B. and Rhodes, G. (2009) Transforming Your Leadership Culture. San Francisco, CA: John Wiley & Sons.

GARAVAN 9781781954171 PRINT.indd 265

22/09/2017 16:32

266  Handbook of international human resource development Mezias, S.J. and Glynn, M.A. (1993). The three faces of corporate renewal: Institution, revolution, and evolution. Strategic Management Journal, 14, 77‒101. Mintzberg, H. (1987). Crafting strategy. Harvard Business Review, 65(4), 66‒75. Mintzberg, H. (1994b). Rethinking strategic planning part II: New roles for planners. Long Range Planning, 27(3), 22‒33. Mitchell, R.J., Shepherd, D.A. and Sharfman, M.P. (2011). Erratic strategic decisions: When and why managers are inconsistent in strategic decision making. Strategic Management Journal, 32(7), 683‒704. Moon, H. and Ruona, W.E.A. (2011). Understanding strategic learning: Review and synthesis of the literature, in K. Dirani and J. Wang (eds), Proceedings of the 2011 Academy of Human Resource Development International Research Conference (pp. 3999‒4010). St. Paul, MN: Academy of Human Resource Development. Moon, H. and Ruona, W. (2012). Towards further conceptualizations of strategic learning, in J. Wang and J. Gedro (eds), Proceedings of the 2012 Academy of Human Resource Development International Research Conference (pp. 3584-3263). Moon, H. and Ruona, W. (2015). Towards a deeper understanding of strategic learning. Leadership & Organization Development Journal. 36(6). 657-674. Moon, H., Ruona, W. and Valentine, T. (2017). Organizational strategic learning capability: Exploring the Dimensions. European Journal of Training & Development 41(3). 222–240. Nicolaides, A. and Yorks, L. (2009). Developing competency and capacity for strategic insight through action inquiry. Proceedings from 2009 Strategic Management Society Annual meeting. Washington, DC. Nutt, P.C. (1993). The formulation processes and tactics used in organizational decision making. Organization Science, 4(2), 226‒251. Nystrom, P.C. and Starbuck, W.H. (2004). To Avoid Organizational Crises, Unlearn. How Organizations Learn (2nd edition). London: Thomson Learning. Pandza, K. and Thorpe, R. (2009). Creative search and strategic sense-making: Missing dimensions in the concept of dynamic capabilities. British Journal of Management, 20(1), 118‒131. Papadakis, V.M., Lioukas, S. and Chambers, D. (1998). Strategic decision-making processes: The role of management and context. Strategic Management Journal, 19(2), 115‒147. Pietersen, W. (2002). Reinventing Strategy: Using Strategic Learning to Create and Sustain Breakthrough Performance. New York: John Wiley & Sons. Pietersen, W. (2010). Strategic Learning: How to be Smarter Than Your Competition and Turn Key Insights into Competitive Advantage. New Jersey: Wiley & Sons. Porter, M.E. (1996). What is strategy? Harvard Business Review, November–December, 61‒78. Porter, M.E. (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. Rudolph, J.W., Morrison, J.B. and Carroll, J.S. (2009). The dynamics of action-oriented problem solving: Linking interpretation and choice. Academy of Management Review, 34(4), 733‒756. Sadler-Smith, E. (2008). The role of intuition in collective learning and the development of shared-meaning. Advances in Developing Human Resources, 10(4), 494‒508. Sadler-Smith, E. and Burke, L.A. (2009). Fostering intuition in management education activities and resources. Journal of Management Education, 33(2), 239‒262. Schein, E.H. (1992). Organizational Culture and Leadership. San Francisco, CA: Jossey-Bass. Schwartz, P. (1991). The Art of the Long View. New York; Doubleday. Senge, P.M. (1990). The Fifth Discipline: The Art and Practice of Learning Organization. New York: Doubleday Currency. Siren, C.A. (2012). Unmasking the capability of strategic learning: A validation study, The Learning Organization, 19(6), 497‒517. Slevin, D.P. and Covin, J.G. (1997). Strategy formation patterns, performance, and the significance of context. Journal of Management, 23(2), 189‒209. Sloan, J. (2006). Learning to Think Strategically. Amsterdam: Elsevier.

GARAVAN 9781781954171 PRINT.indd 266

22/09/2017 16:32

IHRD and strategic learning capability  ­267 Starbuck, W. and Hedberg, B. (2001). How organizations learn from success and failure, in M. Dierkes, A.B. Antal, J. Child and I. Nonaka (eds), Handbook Of Organizational Learning and Knowledge (pp. 327‒350). Oxford: Oxford University Press. Szulanski, G. and Amin, K. (2001). Learning to make strategy: Balancing discipline and imagination. Long Range Planning, 34, 537‒556. Thomas, J.B., Sussman, S.W. and Henderson, J.C. (2001). Understanding ‘Strategic Learning’: Linking organizational learning, knowledge management, and sensemaking. Organization Science, 12(3), 331‒345. Tsang, E.W.K. and Zahra, S.A. (2008). Organizational unlearning. Human Relations, 61(10), 1435‒1462. van der Heijden, K. (1996). Scenarios: The Art of Strategic Conversation. Chichester: John Wiley & Sons. Vince, R. (2004). Rethinking Strategic Learning. New York: Routledge. Voronov, M. and Yorks, L (2005). Taking power seriously in strategic organizational learning. The Learning Organization, 12(1), 9‒25. Wack, P. (1985). Scenarios: Shooting the rapids. Harvard Business Review, November– December, 139‒150. Watkins, K.E. and Marsick, V.J. (1993), Sculpting the Learning Organization: Lessons in the Art and Science of Systemic Change. San Francisco, CA: Jossey-Bass. Weick, K.E., Sutcliffe, K.M. and Obstfeld, D. (2005). Organizing and the process of sensemaking. Organization Science, 16(4), 409‒421. Wilson, J.P. (2012). International Human Resource Development: Learning, Education and Training for Individuals and Organizations. London: Kogan Page. Yang, B., Watkins, K. and Marsick, V.J. (2004). The construct of the learning organization: Dimensions, measurement, and validation. Human Resource Development Quarterly, 15(1), 31‒55. Zabriskie, N.B. and Huellmantel, A.B. (1991). Developing strategic thinking in senior ­management. Long Range Planning, 24(6), 25‒32.

GARAVAN 9781781954171 PRINT.indd 267

22/09/2017 16:32

13. IHRD and virtual HRD

Elisabeth E. Bennett and Rochell R. McWhorter

INTRODUCTION Since the early roots of globalization, there has been a call for the field of human resource development (HRD) to take an active role in international firms, particularly multinational corporations that manage across home and host country entities (Bartlett et al., 2002; Marquardt, 1999). It is hard to imagine this endeavor without virtual human resource development (VHRD), given how technology mediates communication, assists with training delivery, develops and improves organizations, and carries out the day-to-day functions of a workplace. Globalization also means greater opportunity for creativity and innovation when people are exposed to alternative ways to solve problems and to see life from new perspectives. Conversely, negative stereotyping and misunderstandings may accompany cultural exchange. In this vein, international HRD (IHRD) must wrestle with deep cultural issues resulting from globalization (Ruona, Lynham and Chermack, 2003). International economic and cultural knowledge may be exchanged through what Marquardt and Berger (2003) described as the four ‘Ts’: technology, travel, trade, and television. Technology can be a means of knowledge exchange that promotes international learning and, thus, IHRD. The outcomes of IHRD involve mutual understanding, improved performance, increased standards of living and quality of life, reduced conflict, and “any other criteria that would be deemed useful by the involved entities. International HRD is aspirational rather than realized and serves as a challenge for continuous efforts at improvement” (Wang and McLean, 2007, p. 105). Impact of IHRD may ripple through society, as much as through organizations. Wilson (2012, p. 14) noted that IHRD “involves the process for increasing the cognitive, affective and behavioural capacities of all people, organizations and societies globally”, encompassing individual education and training, formal education, training and development initiatives within organizations, and national and international levels of learning and skill-building. IHRD urges scholars and practitioners to move their thinking of HRD in domestic settings to the international and 268

GARAVAN 9781781954171 PRINT.indd 268

22/09/2017 16:32

IHRD and virtual HRD  ­269 global context (Garavan and Carbery, 2012), and, we add, to the digital context. Although IHRD has not been explicitly discussed with regard to VHRD, there are inherent connections this chapter aims to illuminate. The chapter begins with an overview of VHRD, connects VHRD with IHRD, introduces technology development from an IHRD perspective, and offers implications for practice and research. Interwoven through this chapter are issues of knowledge, culture, learning, technical capacity, and the goals and boundaries of HRD.

OVERVIEW OF VIRTUAL HRD Virtual HRD has become a new area of inquiry that shifts the paradigm of IHRD activity into the virtual realm or space, though it does not supplant traditional HRD definitions and processes (Bennett, 2010; Bennett and McWhorter, 2014; McWhorter, 2010). Where HRD has been defined previously as a process or ‘use of’ various developmental strategies (Harbison and Myers, 1964; McLagan, 1989; Swanson, 2008), VHRD is focused on the virtual context or environment created by rich and sophisticated technologies within which people work and learn (Bennett, 2009, 2010; Bennett and Bierema, 2010). Virtual HRD is fundamentally underpinned by organizational culture and knowledge management theories through analysis of how these conceptual areas intersect with networking technology (Bennett, 2009), but there are also empirical roots of VHRD outlined in Bennett and McWhorter (2014). Virtual HRD is defined as a “media rich and culturally relevant web environment that strategically improves expertise, performance, innovation, and community-building through formal and informal learning” (Bennett, 2009, p. 364). Here, web is a small ‘w’ to denote all relevant networked systems, rather than just the World Wide Web or Internet. Where the Internet is connected to VHRD, it becomes part of a personal or organizational web; however, most stable components of an organ­ izational network will be behind a firewall or within an intranet. In daily life, connections to the Internet are made and disconnected with high frequency and the organization cannot control the Internet servers they do not own, even if the connection appears seamless; however, they can determine how to use Internet resources for learning and performance. Internet resources and applications that exist outside of their territory are webbed into corporate networks on a temporary basis. Where external resources are a more stable component of a webbed network is when there is organization–vendor agreement. For example, many academic

GARAVAN 9781781954171 PRINT.indd 269

22/09/2017 16:32

270  Handbook of international human resource development i­nstitutions partner with learning management system (LMS) vendors who host online courses. Faculty and students authenticate through a portal in the institutional system to the vendor system. This demonstrates the inherent flexibility of VHRD to expand and contract to meet work and learning needs. Within the backdrop of massive change in the field due to globalization generally and technology specifically, IHRD professionals need new skills as they adapt to the role of environmental designers for individual, group, and organizational development (Bennett, 2010); however, the field is only just beginning to address how to prepare IHRD professionals for working with sophisticated and complex technologies across cultural boundaries. Given the reach of technology, some have called for technology development to be added as a fourth pillar of HRD, in addition to training, career development, and organization development (Bennett, 2010, 2014a). Technology development will be covered later in this chapter. In this overview, we further focus on knowledge and culture in the webbed environment, learning, and other key issues in VHRD. Knowledge, Culture, and the Webbed Environment VHRD is predicated on a virtual or webbed environment that can be connected either literally through physical networking infrastructure or virtually through digitization or even through connections in one’s mind (Bennett, 2011a, 2014a). IHRD professionals should be interested in what happens in that environment where performance, development, and learning are concerned. Organizations use rich media internally to manage knowledge for work purposes, but also manage values and behaviours occurring within or as a result of technical access. Several authors have advocated for the field to look beyond a purely technical perspective and consider the sociocultural context or ecology of technology (Bennett, 2006; Bennett and Bierema, 2010; Githens et al., 2008). This sociocultural context includes organizational culture. Bennett (2006, 2009) and Plakhotnik (2014) recognized the potential for network systems to reinforce or alter cultural practices, beliefs, and values in an organization. Further, empirical work has demonstrated that intranets – webbed environments that started as knowledge management systems – provide opportunities for adults to learn organizational culture, including community building by connecting people on different shifts and at remote locations to the wider context and values of the organization (Bennett, 2014b). This means that there are far more things being managed, whether intentionally or implicitly, and more things experienced in a webbed environment than we have accounted for in the field. Specifically, Nonaka (1998)

GARAVAN 9781781954171 PRINT.indd 270

22/09/2017 16:32

IHRD and virtual HRD  ­271 pointed to symbols, stories, and other artifacts imbued with meaning as a way to convey social culture that may be learned tacitly, and these elements are founded in webbed systems and digital artifacts. Much has been written about different forms of knowledge, particularly explicit and tacit knowledge (Ardichvili, 2002; Bennett, 2009; Cho, Cho and McLean, 2009; Polanyi, 1966), and these forms are embedded in the very web technology that creates the backbone of many organ­ izations. Many organizational members do not realize how far reaching a given system is because few have access to all areas. Sensitive and proprietary information needs to be restricted based on organizational role type – roles that are culturally driven and navigated. As systems are designed, organizations need to decide whether to move local knowledge to leaders or move decision rights to those with local knowledge (Jensen and Meckling, 1996), or engage in collaborative knowledge exchange and decision-making. Local knowledge of customs, markets, laws, resources, and vendor practices are among the things that can facilitate or hinder IHRD. Culture and customs must allow collaboration, but there are cultural limits to collaboration, such as conflicting values or trustworthiness, but also where international laws control access to strategic technologies. Organizational practice has moved far beyond the basic backbone of information systems, and technology now facilitates informal interaction important for social bonding, knowledge creation, collaboration, and for developing new innovations along with accomplishing day-to-day work. The amount of things – knowledge, programmes, resources and so on – that can be webbed into an organization’s systems is virtually unlimited (Bennett, 2014a) as an organization manages the vast amount of information it encounters, made more vast through globalization. Organizational culture and general knowledge management practices have a mutual influence, which was modelled by Bennett (2009) and depicted in Figure 13.1. The figure shows that there is a continuum of knowledge in an organization that involves tacit and explicit forms when all expertise is considered. Organizations reinforce or alter organizational culture through the way in which they embed cultural knowledge in systems and resources. This embedding process helps to create cultural relevance for an organization so that they store, retain, and consume knowledge that is useful and effective. Conversely, organizational culture – including values, norms, and beliefs – acts as a filter through which members determine relevance, meaning, and potential actions when they encounter new information. An action might be to ignore information since one cannot possibly pay attention to all information in the global environment. Culture provides an interpretive frame that allows information to become organizational knowledge and useful for a given context. Although VHRD has p ­ rimarily

GARAVAN 9781781954171 PRINT.indd 271

22/09/2017 16:32

272  Handbook of international human resource development Explicit

Organizational Knowledge Continuum

Tacit

Interpret information. Determine relevance, meaning and action within context.

Knowledge Management • Wisdom • Tacit Knowledge • Explicit Knowledge • Information • Date

Re f l e c t ive Fe e d b a c k

Organizational culture • Beliefs • Tacit Assumptions • Espoused Values • Norms • Artifacts

Maintain or change organizational culture content. Manage corporate perceptions.

Source:  Used with permission, Bennett (2009).

Figure 13.1  Knowledge influence model in virtual HRD addressed organizational culture since organizations are where most professional work is accomplished, cultural relevance naturally draws in national culture or cross-cultural perspectives where they intersect with virtual environments, and there is potential for people to learn and act in diverse ways when different cultural values are brought to bear on organ­ izational problems. Learning in VHRD Both formal and informal learning are fundamental processes in VHRD that not only underpin performance of individuals, groups and organizations, but also foster community building, expertise development, and meaning-making (Bennett, 2009). Few IHRD professionals would argue against the idea that organizational learning is important to what we do,

GARAVAN 9781781954171 PRINT.indd 272

22/09/2017 16:32

IHRD and virtual HRD  ­273 and individual learning is necessary for organizational learning to occur (Swanson and Arnold, 1996). Indeed, individual learning is important for a learning society desired in IHRD. Although the field tends to focus on formal learning, such as designed training, Marsick and Watkins (1990) indicated that a large majority of learning in organizations is informal and incidental. Informal learning is theorized to be the larger partner in VHRD (Bennett, 2009); however, more research is needed to help the field understand informal learning, especially as it relates to technology, and how our work can foster or hinder informal learning. Inspired by the conundrum of what to do with tacit knowledge in VHRD, four modes of informal learning were theorized from earlier work done by Schugurensky (2000) who identified three types of informal learning, which varied according to whether they were conscious or unconscious and intentional or unintentional. The four modes are selfdirected, incidental, tacit, and integrative (Bennett, 2011a, 2011b, 2012). Culture can be learned or rejected tacitly, but conscious awareness of cultural conflict or the experience of dissonance could create fodder for incidental or self-directed learning within VHRD. Integrative learning is unconscious but intentional learning that occurs behind the scenes, often yielding sudden insight, and it has been considered an important key to tacit knowledge in VHRD (Bennett, 2011b). National culture was analyzed for how it impacted informal learning based on Hofstede’s (2001) five dimensions of culture and the authors found in their review of a number of international studies that culture may affect informal learning through power distance of supervisors, level of self-direction, and motivations to learn through relationship with instructors or by valuing competition and achievement, among other things (Kim and McLean, 2014). Given that tacit knowledge can be embedded into technology, and people can learn tacitly through technology, there are likely other cultural facets to learning, whether formal or informal, that IHRD has yet to discover. Discovery studies, though, will be influenced by how the field steps forward on key issues in VHRD.

KEY ISSUES IN VHRD Knowledge management is related to organizational learning and posited as a critical part of VHRD (Bennett, 2009); however, as of 2008, 12 per cent of technology-related HRD publications addressed virtual teams and only 6 per cent addressed knowledge management, whereas 61 per cent were focused on e-learning and education technology (Githens et al., 2008). A key debate in the field is whether technology is simply a tool or

GARAVAN 9781781954171 PRINT.indd 273

22/09/2017 16:32

274  Handbook of international human resource development if the sophistication of advanced technologies, such as 3-D screen-based virtual reality (Ausburn and Ausburn, 2014), virtual environments such as SecondLife™ (Mancuso, Chlup and McWhorter, 2010; McWhorter and Lindhjem, 2013) or corporate intranets (Bennett, 2009; Bennett and Bierema, 2010) have created a much larger and broad sweeping impact on IHRD practice. We argue the latter and recognize that many publications often leave technology out of the accounts of research and practice. Although e-learning is a critical part of VHRD, and it is the focus of many of the technology-related articles prior to the field defining VHRD, it should not be confined to discrete uses of instructional technology and simple pedagogical discussions. Organizational systems are much more complex than this, and involve many other assistive strategies. For example, an employee that takes an online training class may have results placed in a talent management system, which may simultaneously feed into annual performance evaluation as well as diagnosis of future organ­ izational leadership plans and scenarios. Results can be used to discover learning gaps, set goals, and suggest new courses or materials to fill those gaps. Customized programming allows for data to report over to other systems, even recommend or automatically enroll employees in various programmes. Data is used for multiple purposes, analyzed individually and aggregated to benchmark one group or department against another (Bennett, 2014a). Additionally, people learn through the experience of using technology, and may self-direct their short-term and longer term development goals. It is important to recognize the technical environment is part of the development equation and we need not confine IHRD activ­ ities to discrete programmes and services. Further, technology has become integral to the workplace, now requiring the adoption or creation of new theories and techniques in the field. Since VHRD is considered an environment or context, any number of theories, tools, and processes can be applied to it. For example, Wu and Zhang (2014) employed social network analysis to map employees’ positions in a virtual working community and related it to job performance. Another example is Chung et al.’s (2016) application of information processing theory to VHRD and national culture. They emphasized that VHRD puts learners into contact with different cultures, requiring them to adapt quickly, but culture also influences the learners’ use of tools and features. A key issue for the field is how to draw in new concepts and develop inter-professional as well as intercultural partnerships to foster VHRD. Given the role of technology to manage workload, communication, training, cultural negotiation, and knowledge management across international boundaries, technology is a critical part of international HRD.

GARAVAN 9781781954171 PRINT.indd 274

22/09/2017 16:32

IHRD and virtual HRD  ­275

VHRD AT THE CENTRE OF IHRD CONTEXTS Within the literature and in practice, multiple types of HRD are evident, each of which could have some international dimension, but all have cultural dimension. IHRD, however, is the only type that is wholly focused on the international and intercultural. The discussion of IHRD draws in the question of boundaries. When is IHRD also National HRD (NHRD), another recent discussion in the field, and where might these types conflict? National HRD is highly concerned about culturally-based HRD. Various HRD scholars have discussed different dimensions and typologies of national culture and how they affect organizations, such as OsmanGani (2014) and Kim and McLean (2014); and, thus, it follows that these dimensions affect IHRD. Issues include culturally-based reactions to sexual harassment as well as contextual differences that may make some cultures more prone to harassment than others, which Merkin (2012) stated is a concern for communication in multinational corporations. However, the way in which national culture is applied within an organizational setting is idiosyncratic as business needs change and culture adapts to solve problems over time. Some members of given national cultures could feel isolated or even ostracized within technology-mediated work. Additionally, some organ­ izational cultures may countermand national cultural values, such as embedded ethnic, religious, or sex-based discrimination. For example, an organization may value equal opportunity as India transitions to a freer market economy, which means balancing opportunities for women that conflict with deeply held cultural beliefs about gender roles that provide females with much less access to nutrition, healthcare, and education regardless of caste (Alagaraja and Wilson, 2016). In this example, a corporate culture conveyed through technology must overcome elements of national culture. McLean (2004) indicated that government is the primary driver of NHRD. Although we agree that government is an important engine for NHRD, most especially evident in developing nations that are government-driven, we believe it is not the only primary driver. National HRD (and by extension IHRD) is a partnership among a number of sectors to advance various development goals. For example, institutions of higher education are important for fostering NHRD and IHRD because they provide important learning resources and credentialing services. Indeed, exposure to learning in higher education may help international employees become more trainable in the work setting (Bartlett et al., 2002). When higher education develops international student exchanges for the specific purpose of fostering future employability skills for international

GARAVAN 9781781954171 PRINT.indd 275

22/09/2017 16:32

276  Handbook of international human resource development and domestic students in a global economy, it has been called ‘pre-HRD’ (Burkhardt and Bennett, 2015). Pre-HRD capitalizes on the culture of academia or of professional associations that develop people for a future professional contribution, and it is more general rather than tailored to a given organization’s specific needs. Much of our work is done in organizational-based HRD, but industry-wide or sector HRD is also part of the partnership. Where these differ from pre-HRD is that they are readily applicable to currently held jobs and reflect industry-wide values of a sector. For example, terms such as ‘Big Oil’, ‘Green Energy’, ‘Silicon Valley’, and ‘Investment Banking’ are often associated with values, skills, and jobs requirements that are stable and distinct parts of these industries, and sector organizations sometimes band together to promote quality standards across an industry. Examples might include stock broker exams, information technology certifications, or food service safety training. Metcalfe and Rees (2005) defined IHRD broadly and wrote that it was concerned with HRD processes, practices, and systems at various levels, including society and globally, including governmental agencies, international organizations, society and national HRD. IHRD is known by multiple names that demonstrate a cross-cultural nature. Wang and McLean (2007) indicated that IHRD may be synonymous with cross-national HRD, transnational HRD and global HRD. They identified IHRD both as a field of study and of practice focused on for-profit, not-for-profit, and/or governmental entities and individuals cooperating in some form across national borders. Their definition also included levels of work, community, society, culture, and political expertise. Putting it all together, Figure 13.2 demonstrates a non-linear continuum of VHRD contexts, each with a prevailing culture. Although the other types of culture most certainly affect each type, the prevailing cultures have the most specific and determinist effect on VHRD where it intersects with the contexts. For example, IHRD must be concerned with not one single national culture, but cross-cultural issues. National culture is the prevailing concern in NHRD, as organizational culture is for VHRD. The cultural relevancy of VHRD is flexible to address any of these cultures, and particularly where they intersect and potentially conflict. The importance of depicting these contexts and cultures is to help IHRD professionals work within and leverage culture, even to the point of revealing tacit values and assumptions in their work. In the same way that flatter and more decentralized organizations may be more fitting for developing expertise and innovation because they facilitate communication, we recommend not viewing the contexts in Figure 13.2 as hierarchical, but rather collaborative and capable of cross-integration to foster development of individuals, groups, organiza-

GARAVAN 9781781954171 PRINT.indd 276

22/09/2017 16:32

IHRD and virtual HRD  ­277 S In Se ecto dust cto r ry r C HR ul D tu re

VHRD Cultural Relevance Pre-HRD Education/ Association Culture

HRD Org aniz a Cult tional ure

D IHR ltural u C ssCro

ial RD Soc H N nal/ re io ltu at u N C

Figure 13.2 Intersectionality of cultural relevance in international VHRD tions, industries, and countries. In essence, we view IHRD as HRD that spans cultural and country boundaries, and VHRD is many times the vehicle that bridges these boundaries. A key debate is whether IHRD overlaps with general human development, as proposed by Wang (2008) and McLean (2004). Certainly, ethical practice and humanitarian ideals are important in IHRD; however, purely humanitarian goals could also place HRD professionals in conflict with organizational goals and pragmatic needs in a competitive international business environment. Next, we further explore VHRD and IHRD.

CHALLENGES AND OPPORTUNITIES FOR IHRD IN VIRTUAL HRD Given that technology plays a central role in globalization, there are many opportunities and challenges for IHRD with regard to VHRD. The following sections highlight major discussions around technology, including access and other global issues. Technology Access and International Context The Organisation for Economic Co-operation and Development (OECD) comprises 34 democratic nations (including the US, Canada, Mexico, Sweden, Norway, United Kingdom, Japan, Korea, Spain, Portugal,

GARAVAN 9781781954171 PRINT.indd 277

22/09/2017 16:32

278  Handbook of international human resource development Australia, Turkey and others) who work together and also cooperate with 70 non-member economies to achieve their mission of promoting “economic growth, prosperity, and sustainable development” (USOECD, 2015, para. 1) and the OECD has been working for more than 50 years on comparing policies, looking for answers to complex problems, highlighting effective practices, and coordinating policies both domestically and internationally (Coglianese, 2012; OECD, 2015). Reports from the OECD are useful in the discussion of IHRD and VHRD because they provide current comparative nation-to-nation metrics that describe such measures as technology access, digital natives, skills in the digital economy, and user sophistication, among others (OECD, 2015). One recent OECD (2015) report described worldwide access to the Internet through various technologies. For instance, broadband communication networks (BCNs) support both social and economic activities with the potential to increase expertise and innovation and subscriptions for BCNs increased from 23 per cent (in 2009) to 28 per cent (in 2014) in OECD economies and worldwide. Most BCNs are provided through fixed BCNs such as DSL (48 per cent), cable modem (32 per cent), and direct fibre connections (17 per cent). However, the largest gain in access to the Internet was mobile broadband where the penetration rate was 81 per cent (for all OECD members) in 2014 (up from 11 per cent in 2009). Developed nations such as Australia, Finland, Japan, Sweden and the US saw a 100 per cent penetration rate in 2014 for mobile broadband that allowed Internet access for mobile devices such as smart phones and digital tablets. The Challenge of Digital Divides Digital divides in several categories were noted by the OECD (2015). For instance developing nations in the OECD were at only 44 per cent penetration as compared to 100 per cent in developed nations regarding mobile broadband access, which demonstrates the digital divide still exists among developing and developed nations. Also, citizens with lower income had a significantly lower rate of access to technology and the Internet than did their upper income counterparts. Digital divides are still seen in age brackets with the elderly (those 55 and over) at a great disadvantage of access to and expertise in using digital devices, such as performing online activities like searching, emailing, and making purchases online that are measures of user sophistication. With so many resources going online, Internet access also means access to health information and support groups, although trustworthiness of information remains a problem. Educating citizens to be critical consumers of information is important for their own well-being and for

GARAVAN 9781781954171 PRINT.indd 278

22/09/2017 16:32

IHRD and virtual HRD  ­279 their dependents (including elder care). This necessarily involves informal learning, which we have previously identified as a central process in VHRD, because users need to look for clues to authoritative or truthful information. Learning might include a process of searching and crosschecking with reliable sources to formulate judgment on the material. Some initiatives have been put in place to combat the disparity of access by giving the elderly support through mentoring and service-learning initiatives as they are introduced and trained to use mobile devices for connecting to family members and for personal development (Delello and McWhorter, 2015; Tsai, Shillair and Cotten, 2015). This kind of human­ itarian learning in society may indirectly benefit organizations when personal burdens of their members are eased and for the most advantageous usage of employer-sponsored benefits and to promote knowledge among consumers of their products and services. Global Challenges Although technology access is increasing, there are global challenges that IHRD can help resolve, especially given humanitarian and developmental values in the field. This section highlights global challenges as a backdrop for VHRD that includes the international migrant crisis, fair trade, and sustainability initiatives. The international migrant crisis The current migrant crisis has also shown to be an undertaking that began at national levels that soon spread to a globalized world. At the same time, many European countries, such as Germany, were reporting low birth rates and suffering labour shortages (Myre, 2015). According to UNHCR. org (2007), the United Nations Refugee Agency noted that during the preceding decade, the movement of refugees and asylum seekers was part of a “broader phenomenon of international migration” (p. 1). In a more recent report, the BBC (BBC News, 2015) news agency stated that “vast numbers of migrants have made their way across the Mediterranean to Europe in 2015, sparking a crisis as countries struggle to cope with the influx. . .more than 750,000 migrants are estimated to have arrived by sea so far this year” (para. 1). Further, they reported that the migrant crisis has created conflict in the EU over how best to handle the resettling of the migrants. There is a corresponding higher birthrate in Islamic countries; however, the number of youth has not translated into widespread technology capacity, which means a number of Islamic nations are falling behind in the ability to foster internal economic development (Bashir et al., 2015). These factors contribute to migration patterns and cross-cultural tensions.

GARAVAN 9781781954171 PRINT.indd 279

22/09/2017 16:32

280  Handbook of international human resource development Building learning and technical capacity is an important answer for recent migration and birth rate trends. Where citizens have good access to technology, technology capacity grows, as does economic and cultural disparity with countries whose citizens have little access. VHRD could provide a means for more democratic participation with technology and, thus, help grow the capacity for innovation in a society. Fair trade: an international issue Another issue of a globalized nature is that of fair trade. According to DiMarcello, Hooker and Marconi (2014, p. 1), the fair trade movement “was created to promote the ethical exchange of goods from production to shelf. At its core, fair trade is meant to benefit the producers; typically, the poorest farmers and laborers in developing countries”. The World Fair Trade Organization (2015) explained that the fair trade movement promotes greater justice in world trade and that through various changes, “a successful business can also put people first” (para. 2). Thus, through the fair trade movement, goods can be purchased through producers in developing nations and develop a supply chain that opens untapped markets for small businesses throughout the world. Online marketplaces allow direct-consumer purchases and so training to engage in online marketing and order fulfillment is essential. Embedded in the fair trade concern are prohibitions on technology transfer, or keeping national and trade secrets, which affect trade agreements. Global economic and trade cooperation – as well as fostering mutual recovery from economic collapse – are important concerns for IHRD, but they also force limits on VHRD. Environmental sustainability initiatives Global efforts are underway to improve environmental sustainability for all nations with new universal values being adopted by various international organizations. For instance, a recent meeting of the United Nations (UN) Conference on Sustainable Development noted their primary goals included the sustainability of urban areas, access to modern energy services, and the security of food and nutrition for all countries and areas of the world (UN, 2013). Similarly, McWhorter and Delello (2015) highlighted a number of public and private entities seeking to improve environmental sustainability efforts with technology playing a major role in these interventions. Fazarro and McWhorter (2011) discussed a movement toward the use of more ‘green’ products and processes that increase sustainability and work their way down the supply chain, bringing awareness to both consumers and regulatory bodies resulting in new ways of doing business. Also, according to Baya and Gruman (2011), specific industries have

GARAVAN 9781781954171 PRINT.indd 280

22/09/2017 16:32

IHRD and virtual HRD  ­281 been designating their own metrics for their environmental footprint such that the Sustainable Chemistry Index defined by Dow Chemical and the Considered Apparel Index defined by Nike. These leadership initiatives distributed awareness of sustainability efforts globally. Recycling efforts have been introduced by numerous organizations to reduce carbon emissions and apply green supply management practices organization-wide (University Alliance, 2014). One successful example of recycling is eBay.com (2015) whose business model facilitates a profitable way for individuals and companies to easily exchange and reuse goods globally rather than throwing them in a landfill and their website also provides a way to locate greener products online. Global issues require global technologies, including knowledge to solve problems (Bashir et al., 2015). The next section will discuss technology development and future technologies initiatives relevant to VHRD.

TECHNOLOGY DEVELOPMENT AND LOOKING INTO THE FUTURE Virtual work has become an ever increasingly popular working arrangement. Virtual companies with remote workers almost tripled in 2014 over previous years and is expected to increase in the future (Kane, 2015), which Bennett and Bierema (2010) called alternative workplace strategies that not only benefit workers with flexibility, but organizations realize savings from reduced usage of physical infrastructure. A significant commuter savings reduces pollution and may allow more time for work and personal life. According to Johns and Gratton (2013), the workplace has seen three waves of the virtual work: virtual freelancers, virtual corporate colleagues, and now global virtual coworkers that communicate remotely. It is vital to VHRD that organizations recognize the need to support virtual employees. As virtual work has become pervasive in recent years, it can be seen more widely used in international settings with companies communicating between nations, mediated by technologies with instances of outsourcing, such as call centres in India that give customer service to global clients (Aneesh, 2015). This type of global virtual work enhances profitability but also has an advantage for IHRD by developing people in the host country to learn technical skills and subsequently increases the technical and financial capacity within the host countries. With the availability of satellites and a range of portable devices, virtual networks are expanding into relatively underdeveloped terrain and allow for profitable virtual work in a 24/7 economy. With increasing virtual work as a backdrop, we turn our

GARAVAN 9781781954171 PRINT.indd 281

22/09/2017 16:32

282  Handbook of international human resource development attention to technology development and the trends in future technologies that IHRD will address at some point. Technology Development in VHRD Where VHRD is theorized to be a context or environment in which IHRD processes take place (Bennett, 2009), technology development is the tactical component that builds VHRD and it is more akin to the traditional techniques and processes in HRD. The term ‘development’ here is aligned with how the field uses it in career development, training and development, and organizational development, and it can include creating non-digital technologies. Technology development is defined as the “integration of technology with HRD objectives and processes to improve learning capacity and performance” (Bennett and McWhorter, 2014, p. 581). Learning capacity in this view could be individual or collective, such as organizational learning capacity. Similarly, performance can be individual or collective. We advocate that the field consider cognitive, affective, and metacognitive dimensions of learning so that both learning and performance have short- and long-term outcomes that serve to enhance expertise and flexibly meet the mission of the organizational or other professional context over time. Bashir, Asrar and Babar (2015) identified knowledge as an important facet of technology development, which shows the value of learning for growth of an economy. Simply put, people develop technology and technologies can develop people. Given the nature of VHRD and the major types of HRD shown in Figure 13.2, which the field is addressing and defining at present, technology development needs to become an important pillar of IHRD practice and research. Figure 13.3 demonstrates how technology development integrates with the other three pillars of HRD: training and development, career development, and organizational development. There are two modes of technology development depicted in the figure first published in Bennett (2014a), also depicted in Figure 13.3. The first mode is more common for IHRD when we consider technology as simply a tool or affordance. An example of mode one is found in Bennett (2014a) in which a hospital was seeking feedback on pain management practices from a variety of different healthcare providers that were distributed in different buildings of a large campus and worked different shifts of the workday. The project was part of an initiative to build palliative care, which is most often associated with comfort measures during stages of dying. A SWOT analysis (SWOT stands for Strengths, Weaknesses, Opportunities, and Threats) was adapted to an online forum. Given that the software used to deliver the SWOT was mechanically dif-

GARAVAN 9781781954171 PRINT.indd 282

22/09/2017 16:32

IHRD and virtual HRD  ­283

Human Resource Development

Training & Development

Organization Development

Career Development

Mode 1: Integrate Tech to Support HRD Interventions, Create On-line Learning

Mode 2: Integrate HRD Techniques to Assist/Lead Technology Projects

Technology Development Build VHRD by Integrating Technology with HRD Objectives and Processes to Improve Learning Capacity

Source:  Used with permission, Bennett (2014b).

Figure 13.3  Integrating technology development in HRD ferent than posting a form or poster in physical room, instructions and methods had to be altered to make the process meaningful and successful. Mode two represents unrealized and under-tapped potential in the field of HRD and it occurs when traditional techniques, theories, and IHRD processes are applied to developing, implementing, and leading technology projects, such as new enterprise-wide programmes (Bennett, 2014a). An example of mode two can be found in Bennett (2013) in which IHRD techniques were used as a critical first phase for implementing a patient hand-off tool that would become part of a large hospital’s clinical information system. Four focus groups were designed and led by an HRD professional to facilitate dialogue between staff in the emergency medicine and the internal medicine departments. Participants were primarily doctors responsible for a hand-off process that is largely done through the information system. The first part of each focus group involved general discussion regarding the current process and the second part was analysis and collective reaction to a mock-up of an information tool that included an acuity scale to gauge the condition of each patient to determine if certain conditions should be seen first or if chronological order was appropriate for queueing patients. Data were collected to be analyzed to foster an improved and collectively negotiated system. Clinical information systems were initially implicated in a tragic case of Ebola that went undetected in an Emergency Room visit at a hospital in

GARAVAN 9781781954171 PRINT.indd 283

22/09/2017 16:32

284  Handbook of international human resource development Texas. An international crisis became a local crisis when an Ebola-infected patient was sent home. Initially, blame was placed on the electronic health records (EHRs) for the lack of accurate diagnosis due to miscommunication between the nurse who interviewed the patient and the physician on duty, but this was later retracted (McCann, 2014). It was found that the pertinent information only resided in the EHR and the panel investigating the incident noted “The health care team apparently relied too heavily on communication through the electronic health record” (VOA News, 2015, para. 8). This case highlights that hospital staff needed to learn about the patient through the electronic system, and the need for having a new process within or outside of the system for such deadly infectious diseases that promotes timely and accurate learning ahead of diagnosis. VHRD stresses informal learning as a critical component of human work and learning, and learning occurs through interaction with the systems that comprise an organization’s web environment. We do not know to what extent IHRD professionals were involved in the design of the system or staff training, but clearly these examples underscore the potential for IHRD to assist with technology development that, perhaps indirectly, saves lives and improves the organizational environment. IHRD can leverage technology to ensure that timely information and training is supplied during a global crisis. Indeed, critical knowledge exchanges can occur in virtual environments where there is no risk of spreading disease as there would be through face-to-face contact. This training could include showing pictures and videos of symptoms, or virtualizing demonstrations of techniques using avatars. We predict that technology development will become increasingly important as networks are expanded to more remotely-enabled nodes, such as within private residences, and as new waves of human-like technology are brought into the physical realm of work. Next, we walk through examples of future trends in technology. Looking to the Future A number of technologies currently being developed have great potential to become a part of VHRD in the future. For instance, imagine virtual conferencing with sophisticated technologies where attendees see holograms of other attendees (3D visuals) and shake hands through haptic sensors that enhance their telepresence, allowing them to feel they are in the same physical space while meeting ‘within’ the technology (Culpan, 2015; Fazarro and McWhorter, 2011; McWhorter, 2010). The Internet of Things (IoT) has been a growing trend in business that is expected to be increasingly important in the future (McWhorter,

GARAVAN 9781781954171 PRINT.indd 284

22/09/2017 16:32

IHRD and virtual HRD  ­285 2014). As smart devices are currently being equipped with Internet-ready sensors and then networked, they are beginning to promote the efficiency of workplaces such as healthcare facilities, transportation, manufacturing, and global supply chains as devices take actions independently in a self-organized, networked way (IBM, 2015; McKendrick, 2015). IoT is expected to offer a potential global economic impact in the trillions of dollars by 2025 (Manyika et al., 2015). We expect IoT will become part of VHRD as these networks of devices are webbed into existing digital ecosystems and the data stored can be utilized for IHRD purposes. This includes greater decision-making efforts for strategically linking these devices in innovative ways and analysis of the ‘big data’ (McWhorter and Delello, 2015) they generate. Another development is the use of artificial intelligence (AI) such as ‘Amy’ that is a virtual assistant that schedules meetings via email with various stakeholders (Knight, 2015) or ‘Ivy’, a round-the-clock virtual assistant utilized by TXU Energy that handles customer service in a 24/7 world (Reuters.com, 2014). We predict that AI will become a part of VHRD because the data collected and stored in the system through AI could be utilized for IHRD purposes as people interact with and perhaps learn from AI. Indeed, many large technology companies are continually evolving virtual assistant personas, such as Amazon’s ‘Alexa’, Microsoft’s ‘Cortana’, and Apple’s ‘Siri’ (Kelly, 2015). From a cultural perspective, a researcher might ask why many of these assistants seem to have femalegendered names and voices. Two other examples of technologies expected to impact VHRD include facial image technology and social robots. A current study at the University of Iowa is using a camera mounted on campus that is scanning faces for the purpose of collecting and calculating moods through facial encoding data with potential uses in marketing, advertising, and political campaigns (Hardy, 2016). Biometric identification and diagnosis are fast becoming realities. Social robots (NTU.edu, 2015; Yale University, 2015) are also becoming more prevalent in research and have been put into the workplace on a temporary basis (NTU.edu, 2015). According to Yale University (2015), socially interactive robots explore social development that is difficult or impossible using other methodologies. Technology development is increasingly mirroring sociocultural interaction, and expanding the webbed environment in remote devices that someday will walk themselves into our homes and offices. Clearly, these developments and the other considerations in this chapter have implications for the field of IHRD.

GARAVAN 9781781954171 PRINT.indd 285

22/09/2017 16:32

286  Handbook of international human resource development

IMPLICATIONS FOR IHRD PRACTICE AND RESEARCH Globalization creates an international environment that increases competition for firms with international business, which may push IHRD practices to become more universal (Bartlett et al., 2002). This environment is characterized by coopetition, which McLean (2004) identified as occurring when nations compete at the same time they cooperate. Certainly, humanitarian causes are an important area for cooperation where IHRD’s human and economic development values can improve life for many in the world. Coopetition is just as relevant in the physical world as the world of VHRD, and it will affect how the field engages in practice and research. IHRD literature seems to be more focused on training expatriates to work within new cultures rather than training host country non-­ managerial staff (Bartlett et al., 2002; Osman-Gani, 2014). Bartlett et al.’s (2002) extensive examination of differences in IHRD between domestic firms and multinational affiliates in East and Southeast Asia resulted in a projection that as global competition, advances in technology, and free trade agreements offer further expansion for international business, IHRD practices will remain a crucial area of inquiry. There are three areas of practical implications that we address (a) access, ethics, and sustainability, (b) enterprise systems to ecosystems, and (c) learning agility, and then research implications. Access, Ethics, and Sustainability International VHRD raises the issue of access to technology and the development of infrastructure so that citizens and organizations alike can participate in global citizenship and economic development. Both governments and large organizations in developed worlds provide hardware, software, and education to the developing and under-developed world. There are both humanitarian and viability reasons to do so. These actions open more borders for trade, foster efficient use of resources, offshoring opportunities, and they help struggling countries to meet crises with more self-reliance and independence. Ethical issues arise when engaging in IHRD, especially where cultural conflict and adaptation occur. Engaging in IHRD necessarily means becoming intercultural, and likely changing culture along the way. The level of centralization or decentralization of technology access and use affects how knowledge is managed and created (Bennett, 2006), which is a particular concern for highly centralized countries. Additionally, many trade transactions represent opportunities to use sustainable business practices so that developing nations are not strip-

GARAVAN 9781781954171 PRINT.indd 286

22/09/2017 16:32

IHRD and virtual HRD  ­287 mined of their natural resources and, instead, foster fair trade. Developed countries can demonstrate by example how to engage in green-friendly businesses and green computing. Putting efforts into resolving the digital divide can also bridge cultural divide. Thomas (2014) cautioned that digital access can create a 24/7 expectation for workers that crosses boundaries in unhealthy ways. IHRD professionals should examine systems, including access rights, to ensure that practice is ethical and humane as well as effective. Enterprise Systems to Ecosystems There have been a number of costly corporate technology failures, particularly with enterprise systems (Bennett and McWhorter, 2014). We anticipate that there will be a trend away from expensive and cumbersome enterprise systems to that of more adaptable digital ecosystems, or what has been called the ecology of VHRD (Bennett and Bierema, 2010). This requires special programming to interface with existing systems to add on applications and report data between systems. There is great opportunity to build workplace apps (applications) that are narrowly focused on solving needs, but can be deleted or replaced easily when their usable life­span is over. This will allow for flexibility and customization. For example, academic institutions or large training units can still use the current LMS, but create and link to other applications. This will require IHRD professionals to ‘web in’ resources (Bennett, 2014a), to be able to map the ecosystem and imagine how new applications should function and to develop job aids. Applications could take many forms, including that of virtual worlds (Li, D’Souza and Du, 2011) and games, but they should not be done solely for fun but for engaged learning (see the work of Reeves and Read, 2009). We propose a term, ‘engament’, to remind developers to focus on creating game applications that are not simply for entertainment, but are compelling, useful, and engaging so that they develop people. In other words, people are playing with a purpose. IHRD professionals need to know how to interface with technologists, and a rudimentary knowledge of networking and database design. In some cases, some knowledge of programming is useful. Learning will increasingly be done through multiple modes in the ecosystem where learning is blended with working. There will be a continual need to address the crosscultural nature of IHRD in the ecosystem, which should allow some level of decentralized structure to create greater flexibility and personalization.

GARAVAN 9781781954171 PRINT.indd 287

22/09/2017 16:32

288  Handbook of international human resource development Learning Agility The webbed environment of VHRD allows for greater learning agility so that people can access a number of different resources at the moment of need. This will not only be asynchronous access, but also the potential for synchronous remote coaching in the work environment. Technology allows for real-time access to remote locations, barring some small transmission delay, which solves some limitations on what mentors or experts can participate in from remote locations, such as immediate debriefing after a simulation or practice encounter. Virtual coaching could cross international boundaries. Organizations are likely to move away from large, formal orientations and training programmes, to a model where learning is interwoven in the work environment. This can be done a number of ways, including incorporating web cameras, microphones, and other technologies that can put a learner in touch with an expert or mentor the moment help is needed. This matches the very definition of VHRD (Bennett, 2009) that capitalizes on informal learning in addition to formal training. International VHRD requires new skills for IHRD professionals to foster learning agility. Prior pieces have listed numerous new skills for the field (Bennett, 2009, 2010, 2014a; Bennett and Bierema, 2010; Bennett and McWhorter, 2014; McWhorter and Lynham, 2014). Given that technology development is a very new aspect to the field, we recommend more training on technical architecture and how to conduct usability studies. Usability in HRD has been discussed in Bennett (2014a) and McWhorter (2014). Interestingly, technology and VHRD are absent from the list of core HRD topics recommended for academic programmes as described in Dooley (2014). We recommend that HRD programmes in higher education or industry certificates include more training to foster technology development, as well as make explicit calls for more research in VHRD. This training should go beyond instructional design and help IHRD professionals understand agile work systems (Bennett, 2014a). Finally, assessing learning agility will be a challenge since it would include traditional assessment strategies – such as testing and demonstration – but might include metacognitive ability to make sense of developing conditions on the ground. Research Implications Many of the implications for practice have implications for research in international VHRD. First and foremost, research needs to be done addressing the nexus of technology and cross-cultural work. Some work has already been done on cross-cultural virtual teams (Duus and Cooray,

GARAVAN 9781781954171 PRINT.indd 288

22/09/2017 16:32

IHRD and virtual HRD  ­289 2014; Krumm, Terwiel and Hertel, 2013), but this work needs to be broadened. IHRD should address how virtual teams adapt quickly to the work at hand, and the best ways to resolve cross-cultural tensions. Research that illuminates what corporations are actually doing to configure technology for optimal work and learning and for creating ecosystems will be important for the field. Given IHRD’s focus on humanitarian concerns, research is needed on how international VHRD can support humanitarian causes. This includes fostering economic development and technology capacity. IHRD researchers could look for opportunities to study how technology supports the international work of aid agencies, many of which also have connections to higher education. There is a dearth of research in the field on technology and informal learning, yet this is the biggest growth area for employee development in the future. Researchers can move knowledge forward by investigating how culture affects tool choice and navigation of webbed resources, or strategic searching schemas, or how problems are solved through cross-cultural interaction in VHRD. We have recommended that IHRD professionals learn how to conduct usability studies as a practical action to improve technology, but these studies could also provide research data on informal learning and best methods for design. As IHRD incorporates VHRD into research and practice, we anticipate that there will be many more opportunities to apply different theoretical frameworks or develop new ones.

CONCLUSION International Virtual HRD is not only a virtual space predicated on technology, but also a social and intercultural space. To work with VHRD means working cross-culturally, whether practices involve bridging subgroup culture in one organization, industry cultures, or national cultures and the culture in collaborative global associations. Cultural relevancy will always remain a critical part of VHRD where technology supports and extends human work. There is clearly a need for the field to address ethical issues, such as who owns data, privacy policies, and best practices for balancing management and evolving needs of the virtual workplace; this will include consumer stakeholders since corporations are selling more products that expand their webbed environments into private spaces and maintain contact through wired or wifi connections. It is not hard to imagine that various constituents may not understand the breaches of privacy built into various applications. Additionally, healthy skepticism of technology and using one’s imagination to model how systems are or can

GARAVAN 9781781954171 PRINT.indd 289

22/09/2017 16:32

290  Handbook of international human resource development be interconnected are important for IHRD (Bennett and Bierema, 2010). HRD professionals will need to help train employees to determine what is real and what is not as virtual reality becomes everyday (see Miller and Nicks, 2013); and, build procedures for how to handle the opportunities and challenges of artificial intelligence. Standards of ethics require IHRD to look at the various ways that we help respond to international crises, and the role technology plays in that response. Finally, Virtual HRD can be – and we emphatically state it already is – involved in all levels of IHRD where there is a cross-cultural focus, whether it is pre-HRD, organizational, industry-wide, or national HRD. Therefore, continued efforts in IHRD and technology are critical for socio-economic growth in developing nations (Bashir et al., 2015) as well as the developed world.

REFERENCES Alagaraja, M. and Wilson, K. (2016). The confluence of individual autonomy and collective identity in India: A narrative ethnography using an Indian–US sociocultural lens. Advances in Developing Human Resources, 18(1), 26‒37. Aneesh, A. (2015). Neutral Accent: How Language, Labor and Life Become Global. Durham, NC: Duke University Press. Ardichvili, A.A. (2002). Knowledge management, HRD, and the Internet technology. Advances in Developing Human Resources, 4(4), 451‒463. Ausburn, L.J. and Ausburn, F.B. (2014). Technical perspectives on theory in screen-based virtual reality environments: Leading from the future in VHRD. Advances in Developing Human Resources, 16(3), 371‒390. Bartlett, K.R., Lawler, J.J., Bae, J., Chen, S. and Wan, D. (2002). Differences in international human resource development among indigenous firms and multinational affiliates in East and Southeast Asia. Human Resource Development Quarterly, 13(4), 383‒405. Bashir, T., Ali, T.M., Asrar, M. and Babar, S. (2015). Performance and progress of OIC countries towards building technology development capacity. Current Science, 109(5), 878‒888. Baya, V. and Gruman, G. (2011). Sustainability: Moving from compliance. http://www. pwc.com/us/en/technology-forecast/2011/issue4/features/feature-sustainability-as-normalbusiness.html#the-emerging-context-of-business-operations (accessed 11 May 2017). BBC News (2015, 9 November). Migrant crisis: Migration to Europe explained in graphics. http://www.bbc.com/news/world-europe-34131911 (accessed 11 May 2017). Bennett, E.E. (2006). Organizational intranets and the transition to managing knowledge, in M. Anandarajan, T.S.H. Teo and C.A. Simmers (eds), The Internet and Transformation of the Workplace (pp. 83‒103). Armonk, NY: ME Sharpe. Bennett, E.E. (2009). Virtual HRD: The intersection of knowledge management, culture, and intranets. Advances in Developing Human Resources, 11(3), 362‒374. Bennett, E.E. (2010). The coming paradigm shift: Synthesis and future directions for virtual HRD. Advances in Developing Human Resources, 12(6), 728‒741. Bennett, E.E. (2011a). Informal adult learning in simulated and virtual environments, in Information Resources Management Association (ed.), Gaming and Simulations: Concepts, Methodologies, Tools and Applications (pp. 1914‒1932). Hershey, PA: IGI Global. Bennett, E.E. (2011b). Integrative informal learning in virtual HRD: The key to tacit know­ ledge? J. Storberg-Walker, C.M. Graham and K. Dirani’s (eds), Proceedings of the 2011 Academy of Human Resource Development Research Conference in the Americas: AHRD.

GARAVAN 9781781954171 PRINT.indd 290

22/09/2017 16:32

IHRD and virtual HRD  ­291 Bennett, E.E. (2012). A four-part model of informal learning: Extending Schugurensky’s Conceptual Model. Proceedings of the Adult Education Research Conference. Saratoga Springs, NY: AERC. Bennett, E.E. (2013). Illuminating tacit knowledge during technology development of a patient handoff tool. Academy of Human Resource Development International Conference, 13‒16 February, Arlington, VA. Bennett, E.E. (2014a). Introducing new perspectives on virtual HRD. Advances in Developing Human Resources, 16(3), 263‒280. Bennett, E.E. (2014b). How an intranet provides opportunities for learning organizational culture: Implications for virtual HRD. Advances in Developing Human Resources, 16(3), 296‒319. Bennett, E.E. and Bierema, L.L. (2010). The ecology of virtual human resource development. Advances in Developing Human Resources, 12(6), 632‒647. Bennett, E.E. and McWhorter, R.R. (2014). Virtual human resource development, in N.E. Chalofsky, T.F. Rocco and M.L. Morris (eds), The Handbook of Human Resource Development: The Discipline and the Profession (pp. 567‒589). Hoboken, NJ: Wiley. Burkhardt, J.B. and Bennett, E.E. (2015). Shaping the future of a globalized world: A qualitative study of how undergraduate international students’ everyday cross-cultural experiences were impacted by university diversity initiatives. European Journal of Training and Development, 39(3), 162‒181. Cho, E., Cho, Y. and McLean, G.N. (2009). HRDs role in knowledge management. Advances in Developing Human Resources, 11(3), 263‒272. Chung, C., Angnakoon, P., Li, J. and Allen, J. (2016). Virtual HRD and national culture: An information processing perspective. European Journal of Training and Development, 40(1), 21‒35. Coglianese, C. (2012). Measuring regulatory performance: Evaluating the impact of regulation and regulatory policy. https://www.oecd.org/gov/regulatory-policy/1_coglianese%20 web.pdf (accessed 11 May 2017). Culpan, D. (2015). You can actually touch these 3D holograms. Wired.Co.Uk. http://www. wired.co.uk/news/archive/2015-07/03/haptic-japanese-holograms (accessed 11 May 2017). Delello, J.A. and McWhorter, R.R. (2015). Reducing the digital divide: Connecting older adults to iPad technology. Journal of Applied Gerontology, 1‒23. http://jag.sagepub.com/ content/early/2015/06/16/0733464815589985.full.pdf?ijkey52zPhhLVDmBZC7tW&keyt ype5finite (accessed 11 May 2017). DiMarcello, N., Hooker, N.H. and Marconi, N. (2014). Comparing the United States and Canadian fair trade markets to the rest of the world. Choices. http://choicesmagazine. org/choices-magazine/submitted-articles/comparing-the-united-states-and-canadian-fairtrade-markets-to-the-rest-of-the-world#sthash.RjlSlxtn.dpuf (accessed 11 May 2017). Dooley, L.M. (2014). Standards and accreditation of HRD Academic programs, in N.E. Chalofsky, T.F. Rocco and M.L. Morris (eds), The Handbook of Human Resource Development: The Discipline and the Profession (pp. 673‒687). Hoboken, NJ: Wiley. Duus, R. and Cooray, M. (2014). Together we innovate: Cross-cultural teamwork through virtual platforms. Journal of Marketing Education, 36(3), 244‒257. eBay.com (2015). Find greener products on eBay.com. http://pages.ebay.com/html/green plan.html (accessed 11 May 2017). Fazarro, D. and McWhorter, R. (2011). Leveraging green computing for increased viability and sustainability. Journal of Technology Studies, 37(2). https://scholar.lib.vt.edu/ejour nals/JOTS/v37/v37n2/fazarro.html (accessed 11 May 2017). Garavan, T.N. and Carbery, R. (2012). A review of international HRD: incorporating a global HRD construct. European Journal of Training & Development, 36(2/3), 129. Githens, R.P., Dirani, K., Gitonga, J.W. and Teng, Y.T. (2008). Technology-related research in HRD publications: An analysis of content and metaperspectives from 2000 to 2006. Human Resource Development Quarterly, 19(3), 191–215. Harbison, F.H. and Myers, C.A. (1964). Education, Manpower, and Economic Growth: Strategies of Human Resource Development. New York: McGraw-Hill.

GARAVAN 9781781954171 PRINT.indd 291

22/09/2017 16:32

292  Handbook of international human resource development Hardy, K. (2016). Eye in the sky computes your emotions. The Des Moines Register. http:// www.desmoinesregister.com/story/money/business/2016/01/01/eye-sky-computes-youremotions/76599442/ (accessed 11 May 2017). Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations. Thousand Oaks, CA: Sage Publications. IBM (2015). IBM analytics. http://www.ibm.com/analytics/us/en/industry/ (accessed 11 May 2017). Jensen, M.C. and Meckling. W.H. (1996). Specific and general knowledge, and organizational structure, in P. Myers (ed.), Knowledge Management and Organizational Design (pp. 17‒38). Newton, MA: Butterworth-Heinemann. Johns, T. and Gratton, L. (2013). The third wave of virtual work. Harvard Business Review. https://hbr.org/2013/01/the-third-wave-of-virtual-work/ (accessed 11 May 2017). Kane, C. (2015). Why some employees are ditching the office – literally. Fortune. http:// fortune.com/2015/05/15/office-less-virtual-companies/ (accessed 11 May 2017). Kelly, H. (2015). Which is the best digital assistant: Siri, Cortana, Alexa or Google Now? CNN Money. http://money.cnn.com/2015/07/28/technology/digital-assistant-interview/ (accessed 11 May 2017). Kim, S. and McLean, G.N. (2014). The impact of national culture on informal learning in the workplace. Adult Education Quarterly, 64(1), 39–59. Knight, W. (2015). Is now a good time to meet your new virtual assistant? http://www.technologyreview.com/news/538841/is-now-a-good-time-to-meet-your-new-virtual-assistant/ (accessed 11 May 2017). Krumm, S., Terwiel, K. and Hertel, G. (2013). Challenges in norm formation and adherence: The knowledge, skills, and ability requirements of virtual and traditional cross-cultural teams. Journal of Personnel Psychology, 12(1), 33‒44. Li, J., D’Souza, D. and Du, Y. (2011). Exploring the contribution of virtual worlds to learning in organizations. Human Resource Development Review, 10(3), 264‒285. Mancuso, D.S., Chlup, D.T. and McWhorter, R.R. (2010). A study of adult learning in a virtual world. Advances in Developing Human Resources, 12(6), 681‒699. Manyika, J., Chui, M., Bisson, P., Woetzel, J., Dobbs, Bughin, J. and Aharon, D. (2015). Unlocking the potential of the Internet of Things. http://www.mckinsey.com/insights/ business_technology/the_internet_of_things_the_value_of_digitizing_the_physical_world (accessed 11 May 2017). Marquardt, M.J. (1999). The global age and global economy. Advances in Developing Human Resources, 1(4), v‒viii. Marquardt, M. and Berger, N.O. (2003), The future: globalization and new roles of HRD. Advances in Developing Human Resources, 5(3), 283‒295. Marsick, V.J. and Watkins, K. (1990). Informal and Incidental Learning in the Workplace. London and New York: Routledge. McCann, E. (2014). Missed Ebola diagnosis leads to debate. http://www.healthcareitnews.com/news/epic-pushes-back-against-ebola-ehr-blame-shifting (accessed 11 May 2017). McKendrick, J. (2015). In search of the true value in the Internet of Things. Forbes. http:// www.forbes.com/sites/joemckendrick/2015/05/10/in-search-of-the-true-value-in-the-inter net-of-things/ (accessed 11 May 2017). McLagan, P.A. (1989). Systems model 2000: Matching systems theory to future HRD issues, in D.B. Gradous (ed.), Systems Theory Applied to Human Resource Development (pp. 61‒90). Alexandria, VA: ASTD. McLean, G.N. (2004). National human resource development: What in the world is it? Advances in Developing Human Resources, 6(3), 269‒275. McWhorter, R.R. (2010). Exploring the emergence of virtual human resource development. Advances in Developing Human Resources, 12(6), 623‒631. McWhorter, R.R. (2014). A synthesis of new perspectives on virtual HRD. Advances in Developing Human Resources, 16(3), 391‒401. McWhorter, R.R. and Delello, J.A. (2015). Green computing through virtual learning envi-

GARAVAN 9781781954171 PRINT.indd 292

22/09/2017 16:32

IHRD and virtual HRD  ­293 ronments, in F. Nafukho and B. Irby (eds), Innovative Technology Integration in Higher Education (pp. 1‒28). Hershey, PA: IGI Global. McWhorter, R.R. and Lindhjem, K.A. (2013). Virtual learning environments: How they can benefit nanotechnology safety education. IEEE Nanotechnology Magazine, 7(2), 15‒17. McWhorter, R.R. and Lynham, S.A. (2014). An initial conceptualization of virtual scenario planning. Advances in Developing Human Resources, 16(3), 335‒355. Merkin, R.S. (2012). Sexual harassment indicators: The socio-cultural and cultural impact of marital status, age, education, race, and sex in Latin America. Intercultural Communication Studies, 21(1), 154‒172. Metcalfe, B.D. and Rees, C.J. (2005). Theorizing advances in international human resource development. Human Resource Development International, 8(4), 449‒465. Miller, Z. and Nicks, D. (2013). Meet the robot telemarketer who denies she’s a robot. Time Magazine. http://newsfeed.time.com/2013/12/10/meet-the-robot-telemarketer-who-deniesshes-a-robot/ (accessed 11 May 2017). Myre, G. (2015). The migrant crisis, by the numbers. NPR. http://www.npr.org/sections/­ parallels/2015/09/08/438539779/the-migrant-crisis-by-the-numbers (accessed 11 May 2017). Nonaka, I. (1998). The knowledge-creating company. In Harvard Business Review on Knowledge Management (pp. 21‒45). Boston, MA: Harvard Business School Press. NTU.edu (2015). NTU scientists unveil social and telepresence robots. http://media.ntu.edu. sg/NewsReleases/Pages/newsdetail.aspx?news5fde9bfb6-ee3f-45f0-8c7b-f08bc1a9a179 (accessed 11 May 2017). OECD. (2015). OECD Science, Technology and Industry Scoreboard 2015: Innovation for Growth and Society. Paris, OECD Publishing. Osman-Gani, A.M. (2014). International and cross-cultural perspectives of HRD. In N.E. Chalofsky, T.F. Rocco and M.L. Morris (eds), The Handbook of Human Resource Development: The Discipline and the Profession (pp. 326–349). Thousand Oaks, CA: Sage Publications. Plakhotnik, M. (2014). Organizational culture and HRD: The roots, the landscape and the future, in N.E. Chalofsky, T.F. Rocco and M.L. Morris (eds), The Handbook of Human Resource Development: The Discipline and the Profession (pp. 80–94). Thousand Oaks, CA: Sage Publications. Polanyi, M. (1966). The Tacit Dimension. Garden City, NY: Anchor Books. Reeves, B. and Read, J.L. (2009). Total Engagement: Using Games and Virtual Worlds to Change the Way People Work and Businesses Compete. Boston, MA: Harvard Business Press. Reuters.com (2014). Meet Ivy: The welcoming new voice of TXU Energy. http://www. reuters.com/article/tx-txu-energy-idUSnBw085983a+100+BSW20140408 (accessed 11 May 2017). Ruona, W.E.A., Lynham, S.A. and Chermack, T.J. (2003). Insights on emerging trends and the future of human resource development. Advances in Developing Human Resources, 5(3), 272‒282. Schugurensky, D. (2000). The forms of informal learning: Towards a conceptualization of the field. NALL Working Paper #19-2000. http://www.nall.ca/res/19formsofinformal.htm (accessed 11 May 2017). Swanson, R.A. (2008). Brief on Human Resource Development. https://www.uttyler.edu/cbt/ hrd/documents/HRD_Foundation_Brief_2008%20swanson.pdf (accessed 11 May 2017). Swanson, R.A. and Arnold, D.E. (1996). The purpose of human resource development is to improve organizational performance. New Directions for Adult and Continuing Education, 72, 13‒19. Thomas, K.J. (2014). Workplace technology and the creation of boundaries: The role of VHRD in a 24/7 work environment. Advances in Developing Human Resources, 16(3), 281‒295. Tsai, H.S., Shillair, R. and Cotten, S.R. (2015). Social support and ‘playing around’: An examination of how older adults acquire digital literacy with tablet computers. Journal of

GARAVAN 9781781954171 PRINT.indd 293

22/09/2017 16:32

294  Handbook of international human resource development Applied Gerontology: The Official Journal of The Southern Gerontological Society. http://jag. sagepub.com/content/early/2015/10/20/0733464815609440.long (accessed 11 May 2017). UNHCR.org (2007). UNHCR, refugee protection and international migration. http://www. unhcr.org/4a24ef0ca2.html (accessed 11 May 2017). United Nations (UN) (2013). World Economic and Social Survey 2013: Sustainable Development Challenges. https://sustainabledevelopment.un.org/content/documents/2843WESS2013.pdf (accessed 11 May 2017). University Alliance (2014). Three companies with best practices in environmental sustainability. University of San Francisco. http://www.usanfranonline.com/resources/supplychain-management/three-companies-with-best-practices-in-environmental-sustainability/# (accessed 11 May 2017). USOECD (2015). About the OECD. http://usoecd.usmission.gov/mission/overview.html (accessed 11 May 2017). VOA News (2015, September 4). Report: Texas hospital wasn’t prepared for Ebola crisis. http://www.voanews.com/content/report-texas-hospital-wasnt-prepared-for-ebola-cri sis/2946774.html (accessed 11 May 2017). Wang, G.G. (2008). National HRD: A new paradigm or reinvention of the wheel, Journal of European Industrial Training, 32(4), 303‒316. Wang, X. and McLean, G.N. (2007). The dilemma of defining international human resource development. Human Resource Development Review, 6(1), 96‒108. Wilson, J.P. (2012). International Human Resource Development: Learning, Education, and Training for Individuals and Organizations (3rd edition). London: Kogan Page. World Fair Trade Organization (2015). Definition of fair trade. http://wfto.com/fair-trade/ definition-fair-trade (accessed 11 May 2017). Wu, F. and Zhang, S. (2014). Employees’ positions in virtual working community and their job performances: A social network analysis. Human Resource Development International 17(2), 231‒242. Yale University (2015). Social robotics lab. http://scazlab.yale.edu/ (accessed 11 May 2017).

GARAVAN 9781781954171 PRINT.indd 294

22/09/2017 16:32

14. IHRD, social capital and networking Claire Gubbins

INTRODUCTION Individuals, groups, processes, and organisations always exist in a relational system. Artificially separating an entity (person, process, or group) from its system will produce a flawed understanding (Oshry, 1996). Researchers in the human resource development (HRD) field recognise that the emerging challenges facing HRD and IHRD require developing the social capital, or the “asset value of human relationships” (Harrison and Kessels, 2004, p. 88) embedded in the informal structure of the organ­ isation. A social capital perspective generates ideas and research questions that focus on the relations between, rather than an exclusive focus on the characteristics of, individuals, groups, processes, or organisations (Mehra, Kilduff and Brass., 2001; Rodan and Galunic, 2004). In the context of international HRD (IHRD), the boundary of the network of interest is at multinational level and the focus is on the interaction between national networks. However, the extent of research on social capital and social networks within the field of HRD and IHRD is limited (Gubbins and Garavan, 2005; Korte, 2012; Morton et al., 2004; Storberg-Walker and Gubbins, 2007). This chapter begins by discussing the various debates around conceptualising social capital. The theoretical underpinnings and scope of social capital theories are then reviewed. This includes consideration of the social capital or social network perspectives and how these can inform IHRD research agendas. While the purpose of this chapter is not to present an exhaustive review of all the social network and social capital theories that are available, an outline of a number of the more frequently cited theories are presented (see Payne et al., 2011 for a review). A review of the available empirical research on key topics within the IHRD field is presented. The chapter concludes with a presentation of the resultant implications and directions for future IHRD research.

295

GARAVAN 9781781954171 PRINT.indd 295

22/09/2017 16:32

296  Handbook of international human resource development

DEFINING AND UNDERSTANDING SOCIAL CAPITAL The concept of social capital is grounded in social relations (Coleman, 1988), in contrast to human capital, which refers to individual knowledge and skills. Generally, social capital is defined as the resources or goodwill, which are derived from relationships and which can facilitate action (Adler and Kwon, 2002; Bourdieu, 1985, 1997, Coleman, 1988). However, there is significant variation in the many definitions of social capital that exist. Definitions focus on the structure of relations among actors in a network, the characteristics of the actors, both the characteristics and the structure of the social relationships and the resources possessed by and available to the actors in a network. Structurally, the concept of social capital is considered from the perspective of whether the social relations are internal or external. The internal view refers to ‘bonding’ (Adler and Kwon, 2002) or ‘linking’ (Oh, Kilduff and Brass, 1999) forms of social capital. The external view refers to ‘bridging’ (Adler and Kwon, 2002) or ‘communal’ (Oh, Kilduff and Brass, 1999) forms of social capital. The bonding view of social capital focuses on the internal ties of a given collective (organisation, community, nation and so on) and especially those features that give the collective cohesiveness. The bridging view focuses on social capital as a resource embedded in the social network tying an actor to other actors external to the collective. Those definitions that are neutral consider that the distinctions between the views are a matter of perspective and unit of analysis and they are not mutually exclusive. There is a debate in the definitional literature on social capital between the structural characteristics of relations and the social resources available in the network. Leenders and Gabbay (1999) specify that social capital comprises the beneficial resources actors draw from their social networks, rather than the relationships that constitute those social networks. Conversely, Burt (1992) states that social capital is, at once, the resources that contacts hold and the structure of contacts in a network. He posits that the resources describe ‘who’ you reach and the structure describes ‘how’ you reach. Lin, Dayton and Greenwald (1978), Lin Ensel and Vaughn (1981) and Lin (2001) argue that it is not the strength of the ties per se nor their bridging properties, but the fact that such ties are more likely to reach more valuable resources. Other definitions add further complexity by incorporating components of social capital into the definition. While others still argue that these components are antecedents to, effects of or outcomes of social capital (Lin, 1999; Burt, 1992; Uzzi, 1999). Putnam (2000) posits that trust is fun-

GARAVAN 9781781954171 PRINT.indd 296

22/09/2017 16:32

IHRD, social capital and networking  ­297 damental to all definitions of social capital as without trust, cooperation is limited to activities that are easy to monitor and thus trust is primary for further cooperation. He also argues that by working together people further build trust, so the two concepts have some interactive simultaneity. Adler and Kwon (2002) suggest that goodwill, which is defined as the sympathy (Robison, Schmid and Siles, 2002), trust (Adler, 2001; Leana and Van Buren, 1999) and forgiveness (Williamson, 1985) offered to an individual by friends, family and acquaintances, are the substance of social capital. Other definitions suggest these components are sources of social capital. Other sources considered include motivation (Portes, 1998), norms (Putnam, 1993), trust, associability and ability (Leana and Van Buren, 1999). Social capital researchers also debate the appropriate level of analysis of social capital. Thus, the meaning attributed to ‘actor’ in any definition is dependent on whether a macro or micro perspective on social capital is adopted and subsequently on whether the focus is on the public or private resources obtainable. From a micro perspective, it is defined in terms of individual networks (Burt, 1992), firms in their interactions with other firms (Baker, 1990) and individual actors (Belliveau, O’Reilly and Wade, 1996; Portes and Sensenbrenner, 1993). This private good view focuses explicitly on the individual and his/her accrued social assets, such as prestige, educational credentials and social clubs (Lin, Ensel and Vaughn, 1981; Burt, 1997; Belliveau, O’Reilly and Wade, 1996). From the macro perspective, social capital is considered to be an attribute of nations or geographic regions (Fukuyama, 1995) and communities (Putnam, 1993). The public good perspective emphasises the secondary nature of individual benefits (Coleman, 1990; Fukuyama, 1995). It is argued that one reason for the diverse conceptualisations of social capital is due to there being two major paradigms on social capital: the economic or capital perspective and the sociological or social perspective (Storberg-Walker, 2007). It is argued that social capital has not achieved ‘capital’ status alongside economic and human capital (Herreros, 2004; Fine, 2001). Evaluations of the concept of social ‘capital’ against the properties of ‘capital’ report that the concept possesses some of the properties of capital but not all (Robison, Schmid and Siles, 2002; Adler and Kwon, 2002; Araujo and Easton, 1999). With such extensive debate and a myriad of definitions, concerns have been raised that the social capital concept will have limited value as an analytical construct (Robison, Schmid and Siles, 2002) unless it is used with some degree of precision and in a comparable manner (Castle, 1998). Woolcock (1998) argues that one way to overcome this problem may be to recognise that there are different types or dimensions of social capital

GARAVAN 9781781954171 PRINT.indd 297

22/09/2017 16:32

298  Handbook of international human resource development that respond differently to various situations and can be combined in different configurations for different purposes. Equally critics of those who refer to social capital as a form of ‘capital’ (Baron and Hannan, 1994) imply that social capital should not be called capital because it is not literally ‘capital’. However, Andriessen and Gubbins (2009) argue that as the concept gets its meaning from metaphorical mapping, it is legitimate for it to possess certain characteristics of capital and not others.

SOCIAL CAPITAL AND/OR SOCIAL NETWORK THEORIES AND MODELS Though the fields of social capital and social networks are separate, they substantively address the same topics (Moody and Paxton, 2009). The literature on social networks is focused on the structure of networks. This includes research on the methods and theory about network structure (Moody and Paxton, 2009), how structural characteristics determine outcomes (for example, Bienenstock and Bonacich, 1997) and issues about social support, family, migration and community (for example, Widmer, 1999). Research in this perspective is grounded in two theories focused on the structural properties of networks; namely Granovetter’s (1973) weak tie theory and Burt’s (1992) structural hole theory (discussed later in this chapter). Conversely, the literature on social capital is most concerned with the content of social capital. It addresses issues about defining social capital, topics on community, health, getting a job, economic development, social support and the relationship between social capital and concepts and outcomes such as trust, civil society, community and socialproblem applications such as that on schools and finding a job (see Moody and Paxton, 2009). The fundamental difference in these fields is that research on social capital which does not focus on network structure and connections refers to relations, feelings or norms that are a generalised result of social embeddedness (Fukuyama, 1995; Paldam and Svendsen, 2000). The social capital perspective makes implicit assumptions about the existence of social capital by virtue of being part of some in-group. For example, it could assume that two individuals who were part of the same organisation share the same values, when in reality, individuals within this organisation whom are less well connected (for example, different subsidiaries) may possess different values to the majority. This information is only evident where a social network perspective is used to analyse the extent of connection and the likelihood of values being shared. Conversely, research on social networks which does not focus on content refers to connection

GARAVAN 9781781954171 PRINT.indd 298

22/09/2017 16:32

IHRD, social capital and networking  ­299 without reference to what type of connection it is, such as friendship or support or the qualities of relationships which shape interaction within the in-group, such as trust and reciprocity. For example, despite ‘connection’ across subsidiaries, it is not possible to assume equal diffusion of information as individuals choose whom they share information with. In recognition of the weaknesses’ in either perspective in isolation, Moody and Paxton (2009) argue that research at the intersection of the two literatures yields better theory, predictions and measurement. For example, Levin and Cross (2004) found that trusted (social capital perspective) weak ties (social network perspective) over and above trusted strong ties and untrusted weak ties yielded the most useful knowledge of all. Seibert, Kraimer and Liden (2001), Gubbins and Garavan (2005) and Wong (2008) propose research models that integrate the social network and social capital perspectives. Social Network Theories Weak tie theory Granovetter (1973) introduced weak tie theory to explain how people internal to a group became connected to external groups. He argued that strong ties exist between two individuals within a group; these are defined as emotionally intense, frequent and involving multiple types of relationships, such as those with family, friends, advisors and co-workers. Weak ties exist between any member of this group and an individual external to the group; these ties are defined as not emotionally intense, infrequent and restricted to one narrow type of relationship. Granovetter (1973) proposed that strong ties are more effective at reinforcing cohesion and trustworthy behaviour in a group due to the more intensive dyadic interaction. Consequently, strong ties are instrumental in mobilising or restraining others’ actions (Meyerson, 1994) and facilitating information flow; though that information is likely to be redundant. Conversely, weak ties enable an individual to reach beyond his/her small well-defined social circle in order to make connections with parts of the internal and external social structure not directly accessible to him/her. This produces a looseknit network and provides access to non-redundant information, ideas, influence and resources. Structural hole theory Burt (1992) proposed structural hole theory and defines a structural hole as that which exists between two individuals who are not connected to each other and who circulate in different flows of information (Burt, 1992). Structural hole theory argues that if, in general, information

GARAVAN 9781781954171 PRINT.indd 299

22/09/2017 16:32

300  Handbook of international human resource development c­ irculates more within than between groups, then a key source of social capital is a network of ties characterised by many structural holes or linkages to groups not otherwise connected. An individual who spans the structural hole has access to the information flowing in the social circles at either sides of the hole and most likely receives that information before those who are unconnected. Additionally, structural holes yield power and control benefits; those whom bridge the structural hole have the opportunity to play the two disconnected contacts off against each other so as to achieve their own goals (Burt, 1997). Integrative Social Network/Social Capital Theories Social resource theory Social resource theory, as proposed by, Lin, Ensel and Vaughn (1981) focuses less on social network structure, though it was included, and more on the social resources embedded in an individual’s social network. Lin, Ensel and Vaughn (1981) argue that it is not the weakness of the tie per se nor the bridging property of ties that is important, but the fact that such ties are more likely to reach an individual with the resources or information that the focal individual requires to fulfill his/her objectives. Social resources are thus defined as “the wealth, status, power as well as social ties of those persons who are directly or indirectly linked to the individual”. This concept contrasts and complements the concept of personal resources (Sørensen, 1977). While personal resources involve the individual’s wealth, status and power, social resources are embedded in the positions of contacts an individual reaches through his/her social network. Consequently, an individual who possesses characteristics or controls resources instrumental to the attainment of a focal individual’s goals is considered a social resource (Lin, 1982). Social capital theory by Nahapiet and Ghoshal Social capital is defined by Nahapiet and Ghoshal (1998) as comprising both the network and the assets that may be mobilised through that network. They propose that social capital is composed of three clusters, namely the structural, relational and cognitive. The structural dimension refers to the impersonal configuration of linkages between people and units and thus the structural characteristics of a network (Burt, 1992). Within this cluster are facets such as the presence of network ties (Wasserman and Faust, 1994) and network density, connectivity and hierarchy (Krackhardt, 1989). The relational dimension describes the kinds of personal relationships among individuals. This dimension incorporates such facets as: trust (Putnam, 1993); norms and

GARAVAN 9781781954171 PRINT.indd 300

22/09/2017 16:32

IHRD, social capital and networking  ­301 sanctions (Coleman, 1990); obligations and expectations (Coleman, 1990); identity and identification (Snehota and Hakansson, 1995). The cognitive dimension of social capital refers to that which provides shared interpretations, understandings, language, codes, narratives and systems of meaning among the members of a group (Cicourel, 1973).

IHRD: THE SOCIAL NETWORK/SOCIAL CAPITAL PERSPECTIVE Using social networks and social capital as a lens for investigating international HRD requires a broader social systems view that encompasses the teams, organisations, national and international subsidiaries within which individuals work. At this level of analysis, transnational HR interventions such as global management development, knowledge sharing and learning communities are identified as being especially important areas for development and research (Metcalfe and Rees, 2005; Connor, 2000; Oddou, Mendenhall and Ritchie, 2000). The following sections discuss the contributions of these theories and models of social capital/social networks for these IHRD topics. Transnational Management and Career Development Through a Social Capital Lens Social capital has long been recognised as beneficial for a wide range of individual outcomes such as career mobility (Seibert, Kraimer and Liden, 2001; Burt, 1997; Lin, 2001) and employment (De Graaf and Flap, 1988). Social capital is also found to enable faster access to more diverse information to enable individuals to accomplish work tasks and reduce the amount of time required to complete tasks (Nahapiet and Ghoshal, 1998). It can also facilitate collective action (Leana and Van Buren, 1999). Access to such network benefits subsequently improves an individual’s job performance (Sparrowe et al., 2001; Cross and Cummings, 2003). However, with the increase in the number of individuals working across borders (Peiperl and Jonsen, 2007; Solimano, 2008), individuals’ social capital requirements are becoming more transnational. It is accepted that employees who pursue transnational careers or who engage in transnational assignments must develop and indeed do possess larger and more diverse social networks than those involved in domestic activities (Antal, 2000; Makela, 2007; Levy, Peiperl and Bouquet, 2013). Indeed, it is frequently argued that the development of transnational social capital is one of the important purposes and/or outcomes of overseas assignments

GARAVAN 9781781954171 PRINT.indd 301

22/09/2017 16:32

302  Handbook of international human resource development (Harzing, 2001). However, there is a dearth of research investigating the antecedents (Payne et al., 2011), characteristics and most importantly impact of such transnational networks on individual career outcomes, professional development and job performance (Makela and Suutari, 2009; Levy, Peiperl and Bouquet, 2013). Empirical studies have relied on interviews and identified the characteristics of the social networks more than the impact on outcomes (Dickmann and Doherty, 2008; Jokinen, 2010). Other studies have used international experience as a proxy for transnational social capital (Shrader, Oviatt and McDougall, 2000; McDougall, Oviatt and Shrader, 2003), which does not systematically correlate with transnational social capital due to the difficulties associated with creating and maintaining social relations across national and cultural boundaries (Taylor, 2007). This section summarises the empirical research available in this area, which provides some tentative insights as to the characteristics of transnational social networks and the opportunities and disadvantages for individuals’ career, professional development and job performance outcomes. Transnational networks are characterised as consisting of both internal and external strong and weak ties (Makela and Suutari, 2009). Global managers have broad international networks of weak ties bridging a number of different geographies and functions (Makela and Suutari, 2009). This provides information benefits so work can get done quicker. However, such managers also experience a weakening of their ties with the home organisation and a loss of access to home organisation information which they can only obtain by being physically present. There is some evidence that repatriates experience negative relationships in their home organisation due to jealousy about their international assignment though for the most part the relationships were as they expected (Suutari and Brewster, 2003). Global managers, positioned away from the home organisation also suffer from the ‘out of sight, out of mind’ problem and so can be forgotten in cases of organisational restructuring and promotions (Makela and Suutari, 2009). Global managers also have a diverse network of internal and external strong ties which facilitate access to mentoring and support for problems they experience. These strong ties include contacts in higher hierarchical levels (Makela and Suutari, 2009). However, the downside of strong ties with the home organisation is that it does not have sufficient knowledge, experience or understanding of the international arenas to help with problems. The lack of valuable resources available from the home network can consequently result in a weakening of this network. The characteristics of global managers’ social networks are also reported to vary with the type of global assignments pursued. Bozkurt and Mohr (2011) found that short-term assignments and business

GARAVAN 9781781954171 PRINT.indd 302

22/09/2017 16:32

IHRD, social capital and networking  ­303 travel helped initiate cross-unit ties in a larger number of locations and with larger numbers of partners than expatriate contracts and localised transfers. However, traditional expatriation generates stronger more durable cross-unit ties than other forms of mobility. The value of social networks gained from international assignments on career outcomes is unclear due to a lack of research. The impact of international assignments on the internal careers of individuals after repatriation is reported to be difficult and disappointing (Bossard and Peterson, 2005; Stahl, Miller and Tung, 2002; Suutari and Brewster, 2003). We can only assume that weakened home social networks, the ‘out of sight, out of mind’ mentality and a lack of understanding in the home organisation network as to the competencies gained by the individual on international assignment, is in part responsible for this. Carraher, Sullivan and Crocitto’s (2008) study on the negative impacts on individual careers found that expatriates who had a mentor, either in the host or home country, were more likely to be promoted. From the perspective of the external career, the impact of international assignments on global managers’ careers is more positive; though also under-researched from a social capital perspective. Transnational social capital provides access to information about job opportunities in many countries and facilitates cross-border job mobility (Wong and Salaaf, 1998). Additionally, Lazarova and Cerdin (2007) found that repatriates who engaged in proactive behaviours such as obtaining advice and interventions and outside information gathering (proxies for social networking behaviour) displayed greater intentions to leave the present employer organisation. The professional development of managers, particularly those crossing geographic and cultural boundaries, who can successfully develop social capital in multiple cultural settings is key for MNC’s (Taylor, 2007, p. 337). Competencies such as the ability to create social connections in crosscultural settings, boundary spanning skills, creating and building trust, relational ability and a global mindset are key competencies required for successful global managers and those involved in expatriate assignments (Arthur and Bennett, 2006; Bhaskar-Shrinivas et al., 2005; Bird et al., 2010; Osland, Bird and Mendenhall, 2012; Levy et al., 2007). There are arguments that exposure to diverse cultural and business environments (Arora et al., 2004; Gupta and Govindarajan, 2002) and international assignments (Stahl and Cerdin, 2004; Cerdin and Pargneux, 2009) should cultivate such competencies. However, beyond studies that identify that early career employees with global travel experience develop global social networks (Mayerhofer, Hartmann and Herbert, 2004; Starr and Currie, 2009) and corporate expatriates acquire more knowing-whom c­ompetencies than

GARAVAN 9781781954171 PRINT.indd 303

22/09/2017 16:32

304  Handbook of international human resource development self-initiated expatriates (Bozkurt and Mohr, 2011; Jokinen, Brewster and Suutari, 2008), empirical research investigating how global experience facilitates the development of these competencies is lacking. In addition to the HRD function considering the impact of social capital in the transnational context for the development of leaders or managers and their careers, it is also necessary to consider the impact for the HRD professional. Gubbins and Garavan (2009) argue that global HRD professionals in MNC’s must adapt their social networks to suit the globalisation strategy in use by the MNC, that is, convergence or divergence. MNC’s that tend towards convergence, require a strong center for global strategy (de Wit and Meyer, 2004) and each subsidiary must reflect the HRD strategies, policies, practices, and approaches of the national business system in which it originated. Thus, HRD professionals must enable the dissemination of ‘best practice’ throughout the MNC. Consequently, HRD professionals must increase the size and quality of their social networks. Their social network needs to facilitate information diffusion with international suppliers, subsidiaries, alliance partners, and customers (Parker, 1996). The alternative, divergence strategy, suggests that MNC’s should segment their processes so that distinct parts are located in different countries. De Wit and Meyer (2004) argue that each country’s unique circumstances are an opportunity to be exploited. Each country possesses a different national climate, poses different challenges and requires different competences. Thus, the global HRD professional needs to develop strong relationships with those best placed and most knowledgeable in the local context to implement HRD strategies and respond to and deal with national peculiarities. Alternatively, they need to build relationships with  those, in each national subsidiary, who can share local knowledge with them and facilitate the co-design and implementation of appropriate HRD interventions. Transnational Knowledge Sharing and Learning Through a Social Capital Lens Knowledge sharing, acquisition and creation have been identified as direct benefits of social capital (Adler and Kwon, 2002; Nahapiet and Ghoshal, 1998). Research into how particular structural or content components of social capital enable such knowledge processes is more readily available, though further work is required with regard to, specifically, transnational or intra-organisational (between subsidiaries) network structures. This section reviews some of the available empirical studies, which explore the structural, relational and cognitive (Nahapiet

GARAVAN 9781781954171 PRINT.indd 304

22/09/2017 16:32

IHRD, social capital and networking  ­305 and Ghoshal, 1998) components of social capital and how they impact knowledge processes. Empirical research into the structural dimensions of social capital and their impact on intra-organisational (between-subsidiary) knowledge processes such as knowledge acquisition and sharing is more frequently explored than that of the relational or cognitive components. Informal social relationships established due to intra-organisational personnel transfers or expatriate assignments across MNC subsidiaries are identified as key for diffusing ideas, skills and techniques throughout the organisation (Orlikowski, 2002). These informal social ties facilitate knowledge sharing whereas highly centralised organisational structures inhibit intra-organisational knowledge sharing (Tsai, 2002). Cross and Cummings (2004) found that more geographic diversity resulted in greater external-to-the-group, knowledge sharing and consequently better withingroup performance. More specifically, Hansen, Mors and Løvås (2005) investigated the impact of the specific network structure characteristics of network density, network size, and frequency of interaction on knowledge processes. They found that the higher the density of a within-team (project team members) network and the higher the average strength of relations in a within-team network, the less likely the team is to seek knowledge across subsidiaries. The greater the inter-subsidiary network size, the higher the probability of seeking knowledge across subsidiaries (Hansen, Mors and Løvås, 2005). Additionally, and in line with Granovetter’s (1973) propositions about strong ties being less useful for accessing unique knowledge, Hansen, Mors and Løvås (2005) found that inter-subsidiary relationship strength increased the costs of searching for novel knowledge but reduced transfer costs in the case of tacit knowledge. The most frequently investigated relational component of social capital is trust. In the context of intra-organisational networks, there is an environment composed of both cooperation (by virtue of all members belonging to the same organisational entity) and competition (by virtue of subsidiaries oftentimes competing with each other to obtain the highest metrics). The competitive element of this environment can reduce levels of relational trust and consequently knowledge sharing (Tsai, 2002). However, Tsai (2002) also found that informal social relationships can bypass systems of centralisation to enable knowledge flow even in conditions where different organisational subsidiaries are in competition. In a similar exploration, Hansen, Mors and Løvås (2005) identified that degree of perceived inter-subsidiary competition increased knowledge searching and transfer costs as the knowledge source is likely to hide or neglect to inform the seeker of the knowledge available. Another facet of relational social capital is identity or identification.

GARAVAN 9781781954171 PRINT.indd 305

22/09/2017 16:32

306  Handbook of international human resource development Though also under-researched, Tagliaventi, Bertolotti and Macrì (2010) reported that an enabler of intra-organisational knowledge sharing was professional identification. International community of practice members desired interaction with those who have similar interests, values, procedures and technical language. This enabled them to translate headquarter directions into operational and locally relevant practices (Tagliaventi, Bertolotti and Macrì, 2010). The availability of research investigating the impact of the cognitive dimension of social capital in transnational organisations is limited. However, Inkpen and Tsang (2005) argue that where a shared vision is present in the transnational network, members will have similar perceptions about how to interact with each other which should promote mutual understandings and exchanges of ideas and resources. A lack of clarity about organisation goals can cause conflict (Schnake and Cochran, 1985) which is not conducive to knowledge flow. Arguments as to the adoption of a shared culture and its impact on knowledge processes reflect the convergence and divergence perspectives on MNC strategies. Inkpen and Tsang (2005) argue that though headquarters may try to establish a shared corporate culture in all its geographical subsidiaries, this may not be appropriate to local or national cultures. Thus, local or national culture needs to be understood and accommodated to avoid cultural conflicts and enable knowledge transfer (see Bhagat et al., 2002). Indeed, Tagliaventi, Bertolotti and Macrì (2010), in their qualitative study, suggest that the barriers to knowledge sharing caused by centralised networks (Tsai, 2002) may be removed or reduced in the context of multi-subsidiary organisations as they try to interpret and adapt headquarter strategies and practices for local and national cultures. They report that in these circumstances, there is intense knowledge sharing between business unit managers as they work to operationalise headquarter directions.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE The abundance of discussion in relation to the definition of social capital is in part due to varying researchers’ perspectives and research agendas in terms of whether they are interested in exploring: economic, instrumental outcomes or social, collective outcomes; social network structure, the content of relationships or some combination of both; the collective or individual level or both. Each and all of these perspectives on social capital or social networks provide a unique and valuable lens through which to investigate IHRD. A social network/social capital perspective focuses

GARAVAN 9781781954171 PRINT.indd 306

22/09/2017 16:32

IHRD, social capital and networking  ­307 on the collective elements of organisations and the relationships between these collectives and the consequences for a variety of outcomes. Inside a multiunit organisation, development, learning, knowledge sharing and performance outcomes involve the social processes through which one unit is affected by another (Tsai, 2002). While many studies elaborate on these outcomes at individual and organisational level, there is much less systematic understanding of the social processes that influence these outcomes in terms of inter-subsidiary interaction. A social network perspective provides opportunity to advance our understanding of these intra-organisational social processes. It provides scientific measures through which to investigate social network characteristics, dynamics and impact. It provides measures and analyses techniques, in the form of social network analysis, which improve on current methodologies in use, which rely on qualitative data or proxy measures of social network structure. The social capital perspective provides a framework to investigate relational and cognitive components of social capital, which influence how social network structure delivers value. For example, understanding the impact of; cooperation, competition or conflict between subsidiaries; the cultural and social norms that govern thought and behaviour between subsidiaries in different national settings; the cognitive similarities and differences between subsidiaries; and the shared understandings, language and systems of meaning between subsidiaries. Questions about the career outcomes and performance of individuals working in intra-­organisational assignments and questions about effective management strategies for transnational organisations to achieve the best knowledge sharing and learning outcomes are still under-researched. Consequently there is limited insight for management and HRD practitioners as to how best to coordinate, manage and govern global careerists and transnational organisations.

CONCLUSION The concepts of social capital and networking are central to our understanding of IHRD in the context of research and practice. Given that IHRD is practiced within MNCs, international organisations, non-governmental organisations and nonprofits, the importance of social capital and networking are particularly relevant. IHRD actors, therefore, must develop international networks to more effectively operate in a global context. Areas where social capital and networking emerge as relevant include international careers, international management, transnational knowledge sharing and the development of learning collaborations and networks.

GARAVAN 9781781954171 PRINT.indd 307

22/09/2017 16:32

308  Handbook of international human resource development

REFERENCES Adler, P.S. (2001). Market, hierarchy and trust: The knowledge economy and the future of capitalism. Organization Science, 12, 215‒234. Adler, P.S. and Kwon, S.W. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27, 17–40. Andriessen, D. and Gubbins, C. (2009). Metaphor analysis as an approach for ­exploring theoretical concepts: The case of social capital. Organization Studies, 30(8), 845‒863. Antal, B.A. (2000). Types of knowledge gained by expatriate managers. Journal of General Management, 26(2), 32‒51. Araujo, L.M. and Easton, G. (1999). A relational resource perspective on social capital. In R. Leenders and S. Gabbay (eds), Corporate Social Capital and Liability. Dordrecht: Kluwer Academic Publishers, pp. 68‒87. Arora, A,. Jaju, A,. Kefalas, A.G. and Perenich, T. (2004). An exploratory analysis of global managerial mindsets: A case of US textile and apparel industry. Journal of International Management, 10(3), 393–411. Arthur, W. and Bennett, W. (2006). The international assignee: The relative importance of factors perceived to contribute to success. Personnel Psychology, 48(1), 99–114. Baker, W. (1990). Market networks and corporate behaviour. American Journal of Sociology, 96, 589‒625. Baron, J.N. and Hannan, M. (1994). The impact of economics on contemporary sociology. Journal of Economic Literature, 32, 1111‒1146. Belliveau, M.A., O’Reilly, C.A.I. and Wade, J.B. (1996). Social capital at the top: Effects of social similarity and status on CEO compensation. Academy of Management Journal, 39, 1568‒1593. Bhagat, R.S., Kedia, B.L., Harveston, P.D. and Triandis, H.C. (2002). Cultural variations in the cross-border transfer of organizational knowledge: An integrative framework. Academy of Management Review, 27(2), 204‒221. Bhaskar-Shrinivas, P., Harrison, D.A., Shaffer, M.A. and Luk, D.M. (2005). Input-based and time based models of international adjustment: Meta analytic evidence and theoretical extensions. Academy of Management Journal, 48(4), 257‒281. Bienenstock, E.J. and Bonacich, P. (1997). Network exchange as cooperative game. Rationality and Society, 9, 37‒65. Bird, A., Mendenhall, M., Oddou, G. and Stevens, M. (2010). Defining the content domain of intercultural competence for global leaders. Journal of Managerial Psychology, 25(8), 810–828. Bossard, A. and Peterson, R.B. (2005). The repatriate experience as seen by American expatriates. Journal of World Business, 40(1), 9‒28. Bourdieu, P. (1985). The forms of capital, in J.G. Richardson (ed.), Handbook of Theory and Research for the Sociology of Education (pp. 241‒258). New York: Greenwood. Bourdieu, P. (1997). The forms of capital, in A.H. Halsey, H. Lauder, P. Brown and A. Stuart Wells (eds), Education: Culture, Economy, Society (pp. 46‒58). Oxford: Oxford University Press. Bozkurt, Ö. and Mohr, A.T. (2011). Forms of cross-border mobility and social capital in multinational enterprises. Human Resource Management Journal, 21, 138‒155. Burt, R.S. (1992). Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press. Burt, R.S. (1997). The contingent value of social capital. Administrative Science Quarterly, 42(2), 339. Carraher, S.M., Sullivan, S.E. and Crocitto, M.M. (2008). Mentoring across global boundaries: An empirical examination of home- and host-country mentors on expatriate career outcomes. Journal of International Business Studies, 39, 1310‒1326. Castle, E.N. (1998). A conceptual framework for the study of rural places. American Journal of Agricultural Economics, 80, 621–631.

GARAVAN 9781781954171 PRINT.indd 308

22/09/2017 16:32

IHRD, social capital and networking  ­309 Cerdin, J.L. and Pargneux, M.L. (2009). Career and international assignment fit: Toward an integrative model of success. Human Resource Management, 48(1), 5‒25. Cicourel, A.V. (1973). Cognitive Sociology. Harmondsworth: Penguin Books. Coleman, J.S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94(supplement), S95–S120. Coleman, J.S. (1990). Foundations of Social Theory (1st edition). Cambridge: Cambridge University Press. Connor, J. (2000). Developing the global leaders of tomorrow. Human Resource Management, 39(2‒3), 277‒285. Cross, R. and Cummings, J.N. (2003). Relational and structural network correlates of individual performance in knowledge intensive work. Academy of Management Annual Conference Best Papers, 2003. Cross, R. and Cummings, J.N. (2004). Tie and network correlates of individual performance in knowledge intensive work. Academy of Management Journal, 47(6), 928–937. De Graaf, N.D. and Flap, H.D. (1988). With a little help from my friends: Social resources as an explanation of occupational status and income in West Germany, the Netherlands, and the United States. Social Forces, 67, 452–472. de Wit, B. and Meyer, R. (eds) (2004). Strategy: Process, Content and Context: An International Perspective (3rd edition). London: Thomson. Dickmann, M. and Doherty, N. (2008). Exploring the career capital impact of international assignments within distinct organizational contexts. British Journal of Management, 19(2), 145–161. Fine, B. 2001. Social Capital Versus Social Theory: Political Economy and Social Science at the Turn of the Millennium. New York: Routledge. Fukuyama, F. (1995). Trust: The Social Virtues and the Creation of Prosperity. New York: Free Press. Granovetter, M.S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360‒1380. Gubbins, C. and Garavan, T.N. (2005).Studying HRD practitioners: A social capital model. Human Resource Development Review, 4(2), 189–218. Gubbins, C. and Garavan, T.N. (2009). Understanding the HRD role in MNCs: The imperatives of social capital and networking. Human Resource Development Review, 8(2), 245‒275. Gupta, A.K. and Govindarajan, V. (2002). Cultivating a global mindset. The Academy of Management Executive, 16(1), 116–126. Hansen, M.T., Mors, M.L. and Løvås, B. (2005). Knowledge sharing in organizations: Multiple networks, multiple phases. Academy of Management Journal, 48(5), 776‒793. Harrison, R. and Kessels, J. (2004). Human Resource Development in a Knowledge Economy: An Organisational View. New York: Palgrave Macmillan. Harzing, A.W. (2001). Of bears, bumble-bees and spiders: The role of expatriates in controlling foreign subsidiaries. Journal of World Business, 36(4), 366–379. Herreros, F. (2004). The Problem of Forming Social Capital: Why Trust? New York: Palgrave Macmillan. Inkpen, A.C. and Tsang, E.W. (2005). Social capital, networks, and knowledge transfer. Academy of Management Review, 30(1), 146‒165. Jokinen, T. (2010). Development of career capital through international assignments and its transferability to new contexts. Thunderbird International Business Review, 52(4), 325–335. Jokinen, T., Brewster, C. and Suutari, V. (2008). Career capital during international work experiences: Contrasting self-initiated expatriate experiences and assigned expatriation. International Journal of Human Resource Management, 19(6), 979–999. Korte, R. (2012). Exploring the social foundations of human resource development: A theoretical framework for research and practice. Human Resource Development Review, 11(1), 6‒30. Krackhardt, D. (1989). Graph theoretical dimensions of informal organization. Paper presented at the Annual Meeting of the Academy of Management, Washington, DC.

GARAVAN 9781781954171 PRINT.indd 309

22/09/2017 16:32

310  Handbook of international human resource development Lazarova, M.B. and Cerdin, J.L. (2007). Revisiting repatriation concerns: Organizational support versus career and contextual influences. Journal of International Business Studies, 38, 404‒429. Leana, C.R. and Van Buren, H.J., III (1999). Organizational social capital and employment practices. Academy of Management Review, 24, 34–59. Leenders, A.J. and Gabbay, S.M. (eds) (1999). Corporate Social Capital and Liability. London: Kluwer. Levin, D.Z. and Cross, R. (2004). The strength of weak ties you can trust: The mediating role of trust in effective knowledge transfer. Management Science, 50(11), 1477–1490. Levy, O., Beechler, S., Taylor, S. and Boyacigiller, N. (2007). What we talk about when we talk about ‘global mindset’: managerial cognition in multinational corporations. Journal of International Business Studies, 38(2), 231–258. Levy, O., Peiperl, M. and Bouquet, C. (2013). Transnational social capital: A conceptualization and research instrument. International Journal of Cross Cultural Management, 13(3), 319–338. Lin, N. (1982). Social resources and instrumental action. In N. Lin (ed.), Social Structure and Network Analysis (pp. 131‒145). Beverly Hills, CA: Sage Publications. Lin, N. (1999). Social networks and status attainment. Annual Review of Sociology, 25, 467‒487. Lin, N. (2001). Social Capital: A Theory of Social Structure and Action. Cambridge: Cambridge University Press. Lin, N., Dayton, P.W. and Greenwald, P. (1978). Analysing the instrumental use of relations in the context of social structure. Sociological Methods and Research, 7, 149‒166. Lin, N., Ensel, W.M. and Vaughn, J.C. (1981). Social resources and strength of ties: Structural factors in occupational status attainment. American Sociological Review, 46(4), 393‒405. Makela, K. (2007). Knowledge sharing through expatriate relationships: A social capital perspective. International Studies of Management and Organization, 37(3), 108‒125. Makela, K. and Suutari, V. (2009). Global careers: A social capital paradox. The International Journal of Human Resource Management, 20(5), 992–1008. Mayerhofer, H., Hartmann, L.C. and Herbert, A. (2004). Career management issues for flexpatriate international staff. Thunderbird International Business Review, 46, 647‒666. McDougall, P.P., Oviatt, B.M. and Shrader, R.C. (2003). A comparison of international and domestic new ventures. Journal of International Entrepreneurship, 1(1), 59–82. Mehra, A., Kilduff, M. and Brass, D.J. (2001). The social networks of high and low self monitors: Implications for workplace performance. Administrative Science Quarterly, 46, 121–146. Metcalfe, B.D. and Rees, C.J. (2005). Theorizing advances in international human resource development. Human Resource Development International, 8(4), 449‒465. Meyerson, E.M. (1994). Human capital, social capital and compensation: The relative contribution of social contacts to. Acta Sociologica, 37(4), 383. Moody, J. and Paxton, P. (2009). Building bridges linking social capital and social networks to improve theory and research. American Behavioral Scientist, 52(11), 1491‒1506. Morton, S.C., Brookes, N.J., Smart, P.K., Blackhouse, C.J. and Burns, N.D. (2004). Managing the informal organization: Conceptual model. International Journal of Productivity and Performance Management, 53(3), 214–232. Nahapiet, J. and Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23, 242–266. Oddou, G., Mendenhall, M.E. and Ritchie, J.B. (2000). Leveraging travel as a tool for global leadership development. Human Resource Management, 39(2‒3), 159‒172. Oh, H., Kilduff, M. and Brass, D.J. (1999). Communal social capital, linking social capital, and economic outcomes. Paper presented at the Annual Meeting of the Academy of Management, Chicago. Orlikowski, W.J. (2002). Knowing in practice: Enacting a collective capability in distributed organizing. Organization Science, 13(3), 249‒273.

GARAVAN 9781781954171 PRINT.indd 310

22/09/2017 16:32

IHRD, social capital and networking  ­311 Oshry, B. (1996). Seeing Systems: Unlocking the Mysteries of Organizational Life. San Francisco, CA: Berrett-Koehler. Osland, J.S., Bird, A. and Mendenhall, M. (2012). Developing global mindset and global leadership capabilities, in G. Stahl, I. Björkman and S. Morris (eds), Handbook of Research in International Human Research Management (pp. 220–252). Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing. Paldam, M. and Svendsen, G.T. (2000). Missing social capital and the transition in Eastern Europe. Journal for Institutional Innovation, Development, and Transition, 5, 21‒34. Parker, B. (1996). Evolution and revolution: From international business to globalization, in W. Nord (ed.), Handbook of Organization Studies (pp. 484‒506). London: Sage Publications. Payne, G.T., Moore, C.B., Griffis, S.E. and Autry, C.W. (2011). Multilevel challenges and opportunities in social capital research. Journal of Management, 37(2), 491‒520. Peiperl, M. and Jonsen, K. (2007). Global careers, in H. Gunz and M. Peiperl (eds), Handbook of Career Studies (pp. 350–372). Thousand Oaks, CA: Sage Publications. Portes, A. (1998). Social capital: Its origins and applications in modern sociology. Annual Review of Sociology, 24(1), 1. Portes, A. and Sensenbrenner, J. (1993). Embeddedness and immigration: Notes on the social determinants of economic action. American Journal of Sociology, 98, 1320‒1350. Putnam, R.D. (1993). Making Democracy Work: Civic Traditions in Modern Italy. Princeton: NJ: Princeton University Press. Putnam, R.D. (2000). Bowling Alone: The Collapse and Revival of American Community. New York: Simon & Schuster. Robison, L.J., Schmid, A.A. and Siles, M.E. (2002). Is social capital really capital?. Review of Social Economy, 60, 1–21. Rodan, S. and Galunic, C. (2004). More than network structure: How knowledge heterogeneity influences managerial performance and innovativeness. Strategic Management Journal, 25, 541–562. Schnake, M.E. and Cochran, D.S. (1985). Effect of two goal-setting dimensions on perceived intraorganizational conflict. Group & Organization Management, 10(2), 168‒183. Seibert, S.E., Kraimer, M.L. and Liden, R.C. (2001). A social capital theory of career success. Academy of Management Journal, 44(2), 219. Shrader, R.C., Oviatt, B.M. and McDougall, P.P. (2000). How new ventures exploit tradeoffs among international risk factors: lessons for the accelerated internationalization of the 21st century. Academy of Management Journal, 43(6), 1227–1247. Snehota, I. and Hakansson, H. (eds) (1995). Developing Relationships in Business Networks. London: Routledge. Solimano, A. (ed.) (2008). The International Mobility of Talent: Types, Causes, and Development Impact. Boston, MA: Oxford University Press. Sørensen, A.B. (1977). The structure of inequality and the process of attainment. American Sociological Review, 965‒978. Sparrowe, R.T., Liden, R.C., Wayne, S.J. and Kraimer, M.L. (2001). Social networks and the performance of individuals and groups. Academy of Management Journal, 44(2), 316‒325. Stahl, G. and Cerdin, J.L. (2004). Global careers in French and German multinational ­corporations. Journal of Management Development, 23(9), 884‒902. Stahl, G.K., Miller, E.L. and Tung, R.L. (2002). Toward the boundaryless career: A closer look at the expatriate career concept and the perceived implications of an international assignment. Journal of World Business, 37(3), 216‒227. Starr, T. L. and Currie, G. (2009). Out of sight but still in the picture: Short-term international assignments and the influential role of family. International Journal of Human Resource Management, 20, 1421‒1438. Storberg-Walker, J. (2007). Borrowing from others: Appropriating social capital theories for ‘doing’ HRD. Advances in Developing Human Resources, 9(3), 312‒340. Storberg-Walker, J. and Gubbins, C. (2007). Social networks as a conceptual and ­empirical

GARAVAN 9781781954171 PRINT.indd 311

22/09/2017 16:32

312  Handbook of international human resource development tool to understand and ‘do’ HRD. Advances in Developing Human Resources, 9(3), 291‒311. Suutari, V. and Brewster, C. (2003). Repatriation: Empirical evidence from a longitudinal study of careers and expectations among Finnish expatriates. International Journal of Human Resource Management, 14(7), 1132‒1151. Tagliaventi, M.R., Bertolotti, F. and Macrì, D.M. (2010). A perspective on practice in interunit knowledge sharing. European Management Journal, 28(5), 331‒345. Taylor, S. (2007). Creating social capital in MNCs: The international human resource ­management challenge. Human Resource Management Journal, 17(4), 336–354. Tsai, W. (2002). Social structure of ‘coopetition’ within a multiunit organization: Coordination, competition, and intraorganizational knowledge sharing.  Organization Science, 13(2), 179‒190. Uzzi, B. (1999). Embeddedness in the making of financial capital: How social relations and networks benefit firms seeking financing. American Sociological Review, 64, 481–505. Wasserman, S. and Faust, K. (1994). Social Network Analysis: Methods and Applications. Cambridge: Cambridge University Press. Widmer, E.D. (1999). Family contexts as cognitive networks: A structural approach to family relationships. Personal Relationships, 6, 487‒503. Williamson, O.E. (1985). The Economic Institutions of Capitalism. New York: Free Press. Wong, S. (2008). Task knowledge overlap and knowledge variety: The role of advice network structures and impact on group effectiveness. Journal of Organizational Behavior, 29, 591‒614. Wong, S. and Salaaf, J. (1998). Network capital: emigration from Hong Kong. British Journal of Sociology, 49(3), 258–274. Woolcock, M. (1998). Social capital and economic development: Toward a theoretical ­synthesis and policy framework. Theory and Society, 27, 151‒208.

GARAVAN 9781781954171 PRINT.indd 312

22/09/2017 16:32

PART III PEOPLE DEVELOPMENT PRACTICES

GARAVAN 9781781954171 PRINT.indd 313

22/09/2017 16:32

GARAVAN 9781781954171 PRINT.indd 314

22/09/2017 16:32

15. IHRD: developing expatriates and inpatriates Gary N. McLean, Junhee Kim and Oranuch (Jued) Pruetipibultham

INTRODUCTION It is commonly accepted that multinational corporations (MNCs) and global nonprofit or non-governmental organizations (NGOs), as major vehicles of globalization, have fundamentally changed the way in which financial capital and human resources are organized. In response to these changes, the concept of expatriates as a group of highly mobile and well compensated employees has been highlighted and gained increasing interest during the past decades in the field of international human resource development (IHRD). Further, IHRD professionals are progressively facing new challenges related to the development of inpatriates and repatriates when filling global positions. While the theories and practices regarding expatriation have been widely studied, the concepts of inpatriation and repatriation have been relatively underexplored. Despite evidence that reveals an expatriate failure rate that is not as high as frequently claimed (Harzing, 1995; Insch and Daniels, 2002; Lee, 2007; McEvoy, 2011), a number of references have suggested a fairly high number of expatriates or members of their families who have encountered difficulties coping with the local workforce or culture of the host countries. This, often, results in premature return to their home countries (Black and Mendenhall, 1990; Mahajan and De Silva, 2012; Stroh, 1995). Essentially, previous research studies generally have contended that the predominant factor for such problems was not the technical incompetence of the expat/inpat managers, but the inability of the expatriates and their families to adjust to the international environment (Brookfield Global Relocation Services, 2013; Lazarova and Thomas, 2012). Brookfield Global Relocation Services (2013) reported the top family challenges identified as highly critical to the respondents’ multinational corporations (MNCs) were spouse/partner resistance to international relocation, family adjustment, children’s education, and spouse’s/ partner’s career. Other possible reasons for failure involved inadequate language and cultural preparation, a lack of motivation, mistakes made 315

GARAVAN 9781781954171 PRINT.indd 315

22/09/2017 16:32

316  Handbook of international human resource development in the selection process, and dissatisfaction with the quality of life in the new environment. Lazarova and Thomas (2012) stated that literature on expatriation during the 1970s and early 1980s contended that adjustment was vital for successful international assignments and that selection and training programs should be designed to facilitate this adjustment. Lazarova and Thomas (2012, p. 272) suggested that “the tradition of focusing on adjustment as the key outcome of interest in the study of expatriates continued during the explosion of research on the topic to the late 1980s to the 1990s and to some extent, this has continued to the present day.” As a result, in this chapter, we revisit the notion of how effective selection and training and development programs aid expat/inpat overseas achievement. In addition to screening and training processes, we believe it is vital to explore expats’ trailing spouses as a strong body of literature has suggested that failure to consider the contribution of the accompanying spouse/partner has resulted in premature returns from the overseas assignment (Black and Gregersen, 1991; Cole and Nesbeth, 2014; Lee and Kartika, 2014; McNulty, 2012; Shaffer and Harrison, 2001). Despite the attempt to enhance the quality of expatriates’ spouse/partner management by MNCs in the past several years, a recent survey by Brookfield Global Relocation Services (2013) revealed that family issues were the top challenges for expatriate success. Apart from expatriation, inpatriation is highlighted in this chapter as a way to achieve greater success through the establishment of cross-cultural teams (Harvey and Buckley, 1997; Harvey, Novicevic, and Speier, 2000; Reiche, Kraimer, and Harzing, 2008). As MNCs attempt to expand business operations in developing and emerging countries, they encounter the challenges of accessing, developing, and leveraging local knowledge to compensate for their lack of experience in the assigned locations where local staff frequently provide a vital source of context-specific knowledge and expertise. Therefore, this essentially makes the management of inpatriates distinct from that of their expatriate counterparts. In this chapter, definitions of expatriation and inpatriation are provided. We explain the criteria for success of both expatriates and inpatriates. After discussing benefits of expatriate/inpatriate assignments, we address pre-departure preparation approaches, IHRD support during an assignment, and pre-return preparations. We present challenges that expatriates and inpatriates face and discuss the implications for IHRD research and practice.

GARAVAN 9781781954171 PRINT.indd 316

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­317

DEFINING EXPATRIATES AND INPATRIATES The two key words of the chapter title require definition. Few people will wonder about the meaning of expatriate, though there are some technicalities that lead to different understandings of the word. As used in this chapter, we refer to expatriates as employees of an organization who are sent to a country within the company other than the headquarters country to work, either voluntarily or involuntarily. This is almost always for a limited and, usually, pre-specified period of time and usually exceeds six months. The employee is usually paid a relocation bonus and, depending on the difficulty of the assignment or the cost of living differential from the home country, receives additional compensation. Expatriation is used by ethnocentric organizations to carry the culture of the home office (and often the country in which the home office is located) to the country of assignment. The expatriate may be sent to another country to transfer his or her expertise or skills to that country. And, in culturally sensitive organizations, they may be sent simply because they are the best person for that position. The expatriate is not always from the home office. For example, a manager from France, in a company headquartered in Canada, may be sent to India because she/he is the best manager the company has for that situation. This would occur only in companies that were truly geocentric (Caligiuri and Stroh, 1995; Heenan and Perlmutter, 1979; Sharma, Bhatt, and Singh, 2014). Heenan and Perlmutter (1979) is a classic as the first to describe how companies approach the issue of choosing managers and operating business in multinational organizations using the now widely used terms of ethnocentric, polycentric, regiocentric, and geocentric. An inpatriate, in contrast, while sharing many of the characteristics of an expatriate, is usually a company employee who is being called by the home office to leave his or her country or country of assignment and travel to the country where the home office is located (Collings, Morley, and Gunnigle, 2008; Harvey, Reiche, and Moeller, 2011). This is not a term that is universally accepted, yet it is widely used. For example, Torbiorn (2005) suggested that the term inpatriate could refer to a category of expatriation representing an ethnocentric view. In a similar vein, Dowling, Festing, and Engle (2009) pointed out that in literature inpatriates are not only defined as the same as expatriates, but also are viewed as host country nationals (HCNs) who are transferred to the parent-country operations as expatriates. However, given the wide use of the term (Collings, Scullion, and Dowling, 2009; Dowling, Festing, and Engle, 2009) and the difference in “appropriate characteristics” between expatriate and inpatriate (Moeller, Harvey, and Williams, 2010, p. 174), we adopted the d ­ efinition

GARAVAN 9781781954171 PRINT.indd 317

22/09/2017 16:32

318  Handbook of international human resource development of inpatriate by Collings, Morley, and Gunnigle (2008) and Harvey, Reiche, and Moeller (2011) above. As with expatriation, there can be many reasons for using inpatriates. The organization may use such an assignment as a development tool (Collings, Morley, and Gunnigle, 2008; Harvey, Reiche, and Moeller, 2011; Moeller, Harvey, and Williams, 2010). It may use such an approach to try to instill the company culture into a leading executive who will be returning to the home country to shape them into the company’s culture (Harvey, Reiche, and Moeller, 2011; Moeller, Harvey, and Williams, 2010). They may be being groomed for higher positions within the organ­ ization (Harvey, Reiche, and Moeller, 2011), or the organization may want them to learn better the language in which the company is doing business. A progressive company may wish to bring an inpatriate to the home office to learn more about their own business globally or how business is carried out in other countries (Moeller, Harvey, and Williams, 2010). Thus, the primary distinction is that an expatriate is being sent out from their home country to a country other than the company’s home country, whereas an inpatriate is someone who is being called in to the home country on a temporary assignment.

BENEFITS AND CHALLENGES OF EXPATRIATE/ INPATRIATE ASSIGNMENTS As shown in Table 15.1, a good expatriation or inpatriation assignment can be beneficial at many levels, from the individual and his or her family to the host or home organization (Brewster et al., 2014; Harvey, Reiche, and Moeller, 2011; Kim and Tung, 2013; Lee, 2007; McEvoy, 2011; Minbaeva et al., 2003; Moeller, Harvey, and Williams, 2010; Rahim, 2012). Other benefits are anticipated from such assignments, as determined from Pedersen & Partners Executive Search’s (2012) survey, all of which are substantial (chosen by more than 50 percent of the respondents), except for the last two: “develop local talent, no local talent available, solve a management problem, oversight of local management, independence from local (political) environment, solve a technical problem” (Item 2). Traditionally, researchers have examined the benefits of international assignments at two levels (Brewster et al., 2014): organizational benefits dominated by economic perspectives, such as transaction cost theory, agency theory, and resource-based view; and individual expat/inpat outcomes, based on micro psycho-social theories, such as equity theory

GARAVAN 9781781954171 PRINT.indd 318

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­319 Table 15.1  Benefits of expatriation and inpatriation Level Individual

Benefits Individuals may experience the following benefits: advancement (Brewster et al., 2014; Harvey et al., 2011; Kim and Tung, 2013; Lee, 2007) ● Knowledge acquisition of the global organization (Moeller et al., 2010) ● Financial, with increased compensation and benefits and decreased taxes (Brewster et al., 2014; Lee, 2007; McEvoy, 2011; Rahim, 2012) ● Access to better housing with employees (Rahim, 2012), e.g. cooks, maids, drivers, nannies, etc. ● Opportunity for international travel (Lee, 2007; McEvoy, 2011) ● Expanded organizational networks and friends (Harvey et al., 2011) ● Career

Family

If an expatriate has a family, in addition to many of the above benefits that are shared with the family, the family also benefits from: ● Opportunities to learn a second (or more) language (McEvoy, 2011) ● Opportunities to attend an international school (Rahim, 2012) ● Bonding with other family members, through international trips and through an inclination to focus on the family until friends are made in the new culture ● Acquire stories to share with friends – by Skype or on return

Host Organization

There are potentially a number of benefits that can be acquired by the host organization through receiving an expatriate or inpatriate: ● Receive knowledge or technology transfer (Brewster et al., 2014; Minbaeva et al., 2003; Moeller et al., 2010) ● Help resolve a specific problem (Harvey et al., 2011) ● Experience a better understanding of the company culture (Harvey et al., 2011; Moeller et al., 2010) ● Create opportunities for a reverse assignment

Sending Organization

According to Pedersen & Partners Executive Search (2012), companies assign expatriate country managers for three main reasons: ● Business needs in the host country: The main goals are to grow business and help develop local talent ● Implement corporate culture, structures, and processes in the local organization ● Develop the management skills of the expatriate: In many companies, a successful international assignment is a prerequisite for further career development within the corporation and part of the leadership strategy. (Item 2)

GARAVAN 9781781954171 PRINT.indd 319

22/09/2017 16:32

320  Handbook of international human resource development Table 15.2  Challenges of expatriation and inpatriation Level

Challenges

Individual

●  Lack

Family

Organization

Government

of cultural sensitivity of expat/inpat (Haile et al., 2013) – potentially causing cultural tensions. ●  Language deficiencies (Ko and Yang, 2011). ●  Failure of family to adjust (Brewster et al., 2014) – it is often more difficult for the trailing spouse to adjust as the employee has a job to go to and kids have school to go to, but because it may be impossible to get a work permit for the trailing spouse, there is less for the trailing spouse to do. The trailing spouse also may have greater needs to figure out transportation systems, government regulations, need the language to negotiate shopping, and so on. ●  Lack of cultural sensitivity of host organization (Harvey et al., 2011; Ko and Yang, 2011) – also causing cultural tensions and confusion. ●  Poor selection process (Haile et al., 2013). ●  Insufficient resources, including decision latitude and technology (Kim and Tung, 2013). ●  Government red tape (Nooriafshar and Vibert, 2012) – this can be experienced around work permits, importing or exporting of personal possessions, visas, and so on.

and job characteristics theory. Recently, researchers have begun paying attention to the family level of benefits. Still, there is a dearth of research dealing with family benefits, such as partner career satisfaction and children’s internationally oriented development. There are significant challenges that may cause difficulty for the expatriate/inpatriate and family (Brewster et al., 2014; Gupta, Banerjee, and Gaur, 2012; Haile, Jones, and Emmanuel, 2013; Harvey, Reiche, and Moeller, 2011; Kim and Tung, 2013; Ko and Yang, 2011; Nooriafshar and Vibert, 2012). As most of these challenges are straightforward, they will simply be provided below at different levels in Table 15.2. These challenges faced by expatriates and inpatriates have been discussed from various theoretical perspectives, such as family system theory, spillover theory, cultural novelty theory, and the job demandsresources (JD-R) model. Family system theory suggests that the family is required to restructure and adapt the family dynamics in response to the demands of an overseas assignment (Lee and Kartika, 2014). Spillover theory (Lazarova, Westman, and Shaffer, 2010) is used to describe how the moods, values, and behaviors are transferred from the work role to

GARAVAN 9781781954171 PRINT.indd 320

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­321 the family role and vice versa. Accordingly, failure of a family to adjust could negatively affect an assignee’s job performance. Despite this, an assignee’s family, including the trailing spouse and children, often do not receive any cultural training to prepare them for living in a foreign country (Mansour and Wood, 2010). According to the cultural novelty theory (Gupta, Banerjee, and Gaur, 2012), cross-cultural adjustment can be viewed as a process of reducing the perceived distance between the home and host country cultures. Lack of cultural sensitivity of expats/inpats and host organizations may prolong the time necessary to reduce their cultural novelty, resulting in cultural tensions and confusion. Finally, the JD-R model provides an understanding of expats’/inpats’ challenges that are caused by imbalance between high job demands and insufficient resources, such as authority to make a decision, domestic help, and technology, to name a few (for a detailed list of job demands and resources of a foreign assignment, see Lazarova, Westman, and Shaffer, 2010).

CRITICAL SUCCESS FACTORS FOR EXPATRIATES AND INPATRIATES Defining success for expatriates and inpatriates is very difficult, making it difficult to determine success rates and to establish the criteria on which to make selection decisions. As it is objective and easy to measure, the most common criterion is whether the employee completes the length of time specified at the time of the assignment; that is, whether the employee prematurely returns to the home country (Ashamalla, 1998; Cole and Nesbeth, 2014; Insch and Daniels, 2002; Simeon and Fujiu, 2000). The assumption around this criterion is that successful employees have no reason to come home early; therefore, if they come home early, it is because they (or a member of their family) did not make an adequate adjustment to the new context. A closely related criterion, but one that is more difficult to measure, is whether the employee met his or her objectives for the assignment or completed the assignment (Brewster et al., 2014; Harzing, 1995; Lee, 2007). This accounts for the fact that an employee may come home early because the assignment was successfully completed faster than anticipated at the time of the assignment (McEvoy, 2011). A third criterion is more subjective; how satisfied was the employee with his or her assignment (Brewster et al., 2014; McEvoy, 2011; Reiche, 2006), and how satisfied was the hosting organization with the employee (Bonache, Sanchez, and Zárraga-Oberty, 2009; Toh and DeNisi, 2005)? These could be seen as dual criteria, though they may be reciprocal.

GARAVAN 9781781954171 PRINT.indd 321

22/09/2017 16:32

322  Handbook of international human resource development On both sides, the degree of satisfaction could be determined through interviews (of the employee, family members, and hosting organization supervisor or manager). These same individuals could be polled using a questionnaire, perhaps one that has been standardized when the expatriate and inpatriate populations are large. Multi-rater feedback might be used appropriately for determining developmental needs of the employee. In addition to the standard inclusion of the self, supervisor(s), subordinates, and peers, customers and vendors might also be included. These criteria are consistent with those proposed by Harrison and Shaffer (2005, p. 1454): “Expatriate performance is conceptualized in terms of task completion, relationship building and overall performance.” Recognizing this “discord,” Hemmasi, Downes, and Varner (2010) used interviews with expatriates in the US to develop a “multidimensional model” to determine success “or effectiveness,” using the following scales: “cultural adjustment, work-related adjustment, career development, headquarters (HQ)–subsidiary coordination, assignment completion, professional/skill development, shaping and controlling the subsidiary, satisfaction and overall assignment effectiveness” (Hemmasi, Downes, and Varner, 2010, p. 982). Clearly, the process of determining success is very complicated. As a result of this complication, it is difficult to determine the relative success that companies in countries around the world have with their expatriate and inpatriate assignments. Pedersen & Partners Executive Search (2012) conducted an extensive survey of US and Western European company expatriates assigned throughout the world. Their conclusion is interesting: On average, companies are satisfied with their expatriate programs. Their experience shows that it is easiest to reach goals related to the implementation of corporate structures and processes. Given the limitations of language and cultural barriers they report the greatest difficulties in people related issues. Expatriates can in many cases only be leaders and facilitators while they depend on locals for implementation and execution. Therefore, many companies report that success largely depends on the individual manager and less on the system of expatriation. (Pedersen & Partners Executive Search, 2012, Item #7)

It would be extremely helpful if we could determine whether there are differences in success across countries, as a means of helping us understand either the desired personal characteristics or the effectiveness of differences in preparing and managing expatriates and inpatriates. Unfortunately, the literature just does not exist in any trustworthy way to help in answering this question. Chang (2008) did find that Korean expatriate managers working in Australia exceeded on almost every measure

GARAVAN 9781781954171 PRINT.indd 322

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­323 Australian expatriates working in Korea; however, all measures were selfreport. So, success factors may not have been higher, but there may be differences in how Koreans and Australians respond based on their cultural context. Chang hypothesized that the difference was due to a difference in family stability. Even finding such information in the US is difficult. Relatively old references, summarized by Bhagat and Prien (1996), show failure rates falling between 16 percent and 40 percent at a cost between $250,000 to $1 million per failed assignment. But these are old data, they seem to be repeated without any evidence of their validity (Lee, 2007), and no indication of how such numbers were determined appears to be available. This is definitely an area in which additional research is needed. For example, McEvoy (2011) conducted a case study of two US companies and found that the failure rate was almost zero, where failure was defined as low performance and low adjustment of expatriates. Based on an extensive literature review and a factor analysis of a constructed instrument, McLean and Tolbert (1997) identified seven major success (and, thus, selection) criteria for expatriate assignments, each with multiple sub-factors, as presented in Table 15.3. For inpatriate managers, likewise, the traditional method of selecting individuals based on job performance is likely to decrease. There are various factors worth considering when it comes to inpatriate selection. A number of scholars have contended that the inpatriates’ home country culture plays a vital role in determining the difficulty of adjustment to the headquarters’ culture (Harvey, Novicevic, and Speier, 1999; Harvey, Reiche, and Moeller, 2011; Mendenhall and Oddou, 1985). Mendenhall and Oddou (1985) and Harvey, Reiche, and Moeller (2011) suggested that inpatriate selection involves comparing the home country and headquarters’ country’s political, legal, socio-economic, business, and cultural systems; this allows for establishing a better understanding of both cultures. Similar to expatriate selection, Caligiuri et al. (2001) found that there are many additional factors that play a part in defining the successful inpatriate, including previous experience in the home country of the organization, job type, fluency of the language used, and ability to socialize with local nationals, as well as with individuals from the inpatriates’ home country. Harvey, Novicevic, and Kiessling (2002) suggested a means for selecting inpatriate managers based on maps of multiple intelligences (for example, cognitive quotient, emotional quotient, cultural quotient, network quotient) to match the candidates’ portfolio of abilities with the kind of international assignments. Essentially, a number of scholars have supported the use of cultural intelligence (CQ) as a selection tool, as

GARAVAN 9781781954171 PRINT.indd 323

22/09/2017 16:32

324  Handbook of international human resource development Table 15.3  Major success criteria for expatriate assignments Success Criteria

Sub-factors

Flexibility

●  Reflective

Adaptability Cultural Awareness/Values Comfort with Ambiguity

Relationships Communication Skills Motives

●  Willingness

to think outside of the box to change behavior ●  Change behavior ●  Knowing and valuing own culture ●  Knowing and valuing other cultures ●  Valuing diversity ●  Comfort with unknown ●  Don’t need to be right ●  Acceptable not to have one answer ●  Multiple answers exist ●  Resiliency ●  Genuinely liking people ●  Sense of humor ●  Speaking ●  Listening ●  Writing ●  Career development ●  Personal growth ●  Sense of adventure ●  Helping others – mutual ●  Escape current circumstances (negative) ●  Bragging rights (negative) ●  ‘Helping’ others – non-reciprocal (negative) ●  Willingness

individuals with a high level of CQ can smoothly navigate and understand unfamiliar cultures, though the measurement of CQ is still problematic. Expatriate managers are theoretically expected to be more successful when working in countries other than their own (Ang et al., 2007; Earley, 2002).

IHRD ISSUES FOR EFFECTIVE EXPATRIATION AND INPATRIATION Pre-departure Preparation Issues There are many approaches that can be used to prepare people for an outof-country assignment. In ideal circumstances, preparation is offered to the whole family, not just the expatriate. Sadly, in the United States, com-

GARAVAN 9781781954171 PRINT.indd 324

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­325 panies appear not to take the task of preparation for international assignments very seriously, offering only one or two of the following options and limiting the number of hours dedicated to such preparation (Littrell et al., 2006; Toh and DeNisi, 2005). In every case, the focus can be culturegeneral (preparation for any international assignment, ideally used when a person is going to be active in many countries) and culture-specific (when the assignment is extended in one country). Researchers and scholars (for example, Bhawuk, 2001; Blake, Heslin, and Curtis, 1996; Ko and Yang, 2011; Littrell et al., 2006; Reiche, 2012) have provided detailed discussion about the many approaches to training and development that can be used prior to overseas assignments. Cognitive Knowing something about the overseas assignment, the country, and its culture is important but not sufficient. Unfortunately, some employees facing an international assignment receive no training beyond this cognitive aspect (Littrell et al., 2006; Mansour and Wood, 2010; Toh and DeNisi, 2005). When this is the only training or preparation received, there can be a false sense of confidence about preparation for the assignment. Self-study can focus on travel books, CIA fact sheets, websites, discussions with people from that country (perhaps students at a local university), and so on. Behavior modification Changing one’s behavior is certainly more difficulty than simply learning something about another culture. Role playing or simulations can be used in a pre-departure training program to highlight areas in which one’s behavior may need to be changed. Getting feedback from others in a network or cultural “buddies or mentors” can also effectively assist in changing behaviors (Toh and DeNisi, 2005, p. 143). Experiential With some overlap with the previous type, experiential activities can be helpful in beginning the process of making adjustments to the new culture (Littrell et al., 2006). Participating in local fairs sponsored by an ethnic group from the culture to which one is headed can be fun and useful. Many large cities have areas with a heavy concentration of people from other cultures, which usually include restaurants and stores reflecting that culture. The ideal of the “look-see visits,” of course, is to travel to the country ahead of time, perhaps as a company paid vacation (Ko and Yang, 2011, p. 161; Littrell et al., 2006, p. 372).

GARAVAN 9781781954171 PRINT.indd 325

22/09/2017 16:32

326  Handbook of international human resource development Cultural self-awareness Cultural training is essential even when the expats/inpats share the same language with the host country (Toh and DeNisi, 2005). Directed, personal reflection can help people discover their own culture in ways that most people do not understand. Yet, unless a person understands his or her own culture, other cultures will be outside the realm of understanding (Reiche, 2012). Journaling by using a myriad of applications for computing devices, as well as traditional pen and paper, is an effective method for sojourners to use to reflect on the experiences and challenges in the new cultural context. HRD professionals may explore “apps” (Clapp-Smith and Wernsing, 2014, p. 675) to provide platforms that enable easy journaling as a means to compare a new cultural experience to a home culture. Interaction Interaction can be experienced in many ways, including those discussed previously. Conversations with people from the culture can be helpful, as can conversation in simulations or role plays. Interaction with the expatriates or inpatriates currently occupying their positions in the country is perhaps the most useful (Littrell et al., 2006). In particular, mentoring and buddy systems have often been very effective in many organizations because the stress of adjusting to a new work and culture could be relieved by supportive relationships with others (Toh and DeNisi, 2005). Attribution (culture assimilator) Bhawuk (2001, p. 141) explored the evolution of the cultural assimilator, “the most researched method of cross cultural training.” Cultural assimilators consist of short case studies of a cross-cultural dilemma, either culture-general or culture-specific. For each case, typically four alternative actions are suggested. Training participants select their choice and then discuss their decision in small groups. Following discussion, the correct answer, based on research, is given with a rationale. Rationales are also given for the remaining three options. This approach combines interaction, cognitive, and behavior modification (Pruetipibultham, 2012). Integrated The integrated approach combines many (preferably all) of the approaches  presented here. This allows the trainee to acquire the best of all of the approaches that can be used (Ko and Yang, 2011; Littrell et al., 2006). This approach also, generally, incorporates more time into a comprehensive approach to developing the expatriate for his or her assignment.

GARAVAN 9781781954171 PRINT.indd 326

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­327 IHRD Support During the Assignment All of the pre-departure training is somewhat abstract, as the expatriate doesn’t really know how he or she will respond to the new culture. However, once in the new culture, the reality comes home, and that’s when support is really needed. Many approaches can be used to provide such support. Culture shock and coaching Companies can help expatriates deal with culture shock. Abbott, Stening, and Atkins (2006) suggested evidence-based executive coaching to aid and develop expatriation by using current knowledge to coach expatriates, and in designing interventions for them; as “Best current knowledge is up-todate information from relevant, valid research, theory and practice, found in the established literature in related fields in addition to coach-specific literature” (Abbott, Stening, and Atkins, 2006, p. 300). In addition, while training per se may not always result in better performance, research has revealed that training accompanied by follow-up and one-to-one coaching dramatically improved transfer of training (Olivero, Bane, and Kopelman, 1997). Abbott, Stening, and Atkins (2006) contended that coaching that was associated with acculturation can be extremely useful in helping expatriates discover their training needs and develop interventions and solutions in an individualized manner. Cultural coaches can also use several techniques to aid newcomers. One of the interesting and entertaining techniques is storytelling/narrative through media. McLean (2006, p. 216) suggested, “The narrative or storytelling can be a rich source of information about cultures that will help others learn about a specific culture.” Storytelling-through-media may be especially effective when used to assist expatriates’ significant others/ trailing spouses and children in pursuit of deeper understanding of the new culture. We suggest that coaches learn to use evidence-based coaching with meaningful stories as an intervention during the culture shock period. Network In addition to the provision of coaching, enriching expatriates’ networks can be invaluable support during their assignment. Research has highlighted the benefits associated with the size of expatriates’ networks for general adjustment (Black and Gregersen, 1991). Johnson et al. (2003) found that the number of relationships that expatriates developed with host country nationals positively influenced general, interaction, and work adjustment. Wang and Kanungo (2004) studied expatriates from East Asia, North America, and Europe working in China; they found that a

GARAVAN 9781781954171 PRINT.indd 327

22/09/2017 16:32

328  Handbook of international human resource development balanced network composed of both local and peer expatriates indicated the social integration of expatriates in the local environment and thus is highly correlated with expatriate psychological well-being, especially when interacting with social partners. Pruetipibultham and McLean (2010) studied expatriates in the emerging economies in Southeast Asia and found that closeness with other expats and local employees in their social networks helped with expatriates’ overall adjustment. Connection with home office Last, staying in touch with people in the home office while away can help expatriates avoid feelings of rejection and isolation they may have on returning home. Maintaining relationships in their home office can also be helpful if expatriates can align their career aspirations, home colleagues, and the new skills acquired during their international assignment. Shortland (2011) studied women expatriates’ networks and found that expatriates essentially used informal networks to learn of potential vacancies and make career advances; they used formalized networks to supplement and secure their links. Their home office can develop formal and informal networking interventions to aid and support their international sojourners. Successful Pre-repatriation While still in the country of assignment but before returning home (repatriation), there are things that can be done to make the transition easier. Reverse culture shock While expatriation has been the major focus for scholars in the international HRD field, repatriation has been relatively underexplored. Studies have revealed that re-entry entails new difficulties as repatriates deal with reverse culture shock. Stroh, Gregersen, and Black (2000) contended that expatriates and their families acculturate to the host-country culture during international assignments; the living and working experience often times change their worldview and routine behaviors. Thus, prior to their return, it is important to help returnees understand that they will likely experience reverse culture shock and remind them of the process of acculturating that they used initially in the expatriation process. Preparation for acceptance in home country Torbiorn (1985, p. 69) suggested that, as long as “the repatriate’s identity and basic values are still bound up in the culture of the home country, the strain of adjusting to conditions at home will be slight.” However,

GARAVAN 9781781954171 PRINT.indd 328

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­329 practitioners and researchers alike have inadequately addressed the issues of re-acclimatizing expatriates who return home after the completion of an international assignment. Despite the attempt of MNCs to establish procedures to help returning employees to re-adjust to their home settings, repatriation can present a challenging adjustment and failure for both employees and companies (Vidal, Valle, and Aragon, 2008). Kraimer, Shaffer, and Bolino (2009) found that, in several cases, expatriates resigned from their companies within two years after their return from an international assignment. Expatriate turnover can incur cost from the loss of knowledge, skills, and networks expatriates acquired during the overseas assignment. The loss also comes from the company’s decreased ability to recruit future expatriates if potential candidates perceive that their careers may be negatively affected. To increase repatriate adjustment, organizations providing a mentor in the home country helps with their return. A fluent and ongoing communication system should include a pre-departure briefing, reorientation programs, agreement on the position upon repatriation, and training for the new job prior to return, as well as the financial package and lifestyle assistance/counseling (Lazarova and Caligiuri, 2001; Vidal, Valle, and Aragon, 2008). Practical considerations In spite of the existence of the aforementioned practices, Lazarova and Caligiuri (2001) suggested that perceptions of organizational support programs were significantly associated with repatriates’ intentions to stay. They argued, however, that these support practices were not the most important issues to address repatriate turnover. Repatriates were convinced that organization-wide appreciation of their international experiences, care for their well-being upon return, and career-planning programs were the most vital pre-repatriation support practices. Successful Post-repatriation Opportunity to share learning experience The smooth transition of repatriates to their home offices not only reduces turnover rates, but also encourages knowledge transfer to the company’s incumbent and future expatriates. The knowledge repatriates acquired during the international assignment is essential for organizational learning. However, few multinational corporations actively reap the learning benefits from their returning expatriates; also, little empirical research on this topic exists to date (Oddou, Osland, and Blakeney, 2009). Minbaeva et al. (2003) suggested that MNCs need to pay closer attention to the transfer

GARAVAN 9781781954171 PRINT.indd 329

22/09/2017 16:32

330  Handbook of international human resource development of knowledge. Oddou, Osland, and Blakeney (2009) contended that it is crucial to develop expatriate ability in relation to networks, relationship, expertise, and job-related attributes in the form of position power to aid transfer of knowledge; also, their motivation to transfer knowledge associates to career consideration and organizational commitment. Returnees often return full of excitement and stories about their assignment, only to find that no one is interested in hearing their stories. Providing opportunities in brown bag lunches or offering the employees to make presentations in local schools or places of worship might give them an opportunity to share their experiences with audiences that are interested. Replace loss of prestige, power Returnees have often had positions of power or authority in their international assignments. They may find it difficult to return to find that they no longer have such authority and, further, may miss having access to maids, drivers, cooks, nannies, and so on, causing some depression (Kim and Tung, 2013; Sharma, Bhatt, and Singh, 2014). These issues are not going to be eliminated. However, offering counseling services to the returnee and the family could help to alleviate the feelings of loss that are likely to be experienced (Bonache, Brewster, and Suutari, 2001). Career opportunities In companies that require an international assignment before enhanced career opportunities are available, this will not be an issue. Not every company has such an expectation, however. In those cases, there will be a need to work closely with HR to identify new career opportunities in which knowledge of the international contexts of the company will be beneficial (Nery-Kjerfve and McLean, 2012).

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE Bader and Berg (2013) studied the impact of terrorism-induced stress on attitudes and the performance of 143 expatriate managers in high-risk locations and found that several terrorism-related stressors created a significant stress level for individuals, resulting in negative attitudes toward their host-country colleagues and plummeting performance. Interestingly, they found that intra-family conflicts due to terrorism had the strongest effect of all the relevant stressors. Research needs to focus on how the stressors caused by potential terrorism can be alleviated by organizations.

GARAVAN 9781781954171 PRINT.indd 330

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­331 While there are indications that culture mentors and coaches are increasingly being used by MNCs (Barosa-Pereira, 2014; Crocitto, Sullivan, and Carraher, 2005; Jassawalla, Asgary, and Sashittal, 2006; Zhuang, Wu, and Wen, 2013), future research can focus on the role of mentoring and coaching related to cultural adjustments and further compare the differences in home and host country mentors or coaches. Zhuang, Wu, and Wen (2013) suggested that mentors’ psychosocial support, role modeling, and career development functions were positively related to the protégés’ general adjustment, office interaction adjustment, and work adjustment. The mentoring/coaching competencies for overseas assignments can, therefore, be a focus for future research. Future research can also emphasize the process of selecting coaches/mentors and the deployment of suitably qualified and experienced mentors and coaches, especially in hardship posts where the need may be vital (Abbott, Stening, and Atkins, 2006). As highlighted earlier, there is a dearth of information about success rates, both in the US and across countries. Likewise, there is need for more current and more accurate information on the cost of an unsuccessful assignment. While there has been increasing attention to the role of repatriation in the expatriation cycle, there is still a shortage of information on the process and empirical evidence of the steps that can be used effectively to improve the repatriation process. Finally, almost all of the references we have had to rely on in writing this chapter have come from the US or has focused on US MNCs, with only a few exceptions. All of the topics in this chapter are important to corporations and their employees, and we need many more scholars from around the world to focus on these topics from the perspective of their country.

CONCLUSION While technology improvements may continue to reduce the size of the globe and reduce the need for people to fly or travel to other countries, there will also be a need for expatriates and inpatriates. It becomes critical, therefore, for HRD scholars to continue to focus on improving the process of movement, not only for individuals and families, but also for the host and home organizations. But to do this more effectively, we need much more research, so that conclusions related to this population can be based on more empirical evidence than on many of the widely circulating statements that may or may not be true. In a world full of tension, we need HRD to use its skills to improve the world (McLean and McLean, 2001), and working with expatriates and inpatriates is a good beginning.

GARAVAN 9781781954171 PRINT.indd 331

22/09/2017 16:32

332  Handbook of international human resource development

REFERENCES Abbott, G.N., Stening, B.W., and Atkins, W.B. (2006). Coaching expatriate managers for success: Adding value beyond training and mentoring. Asia Pacific Journal of Human Resources, 44(3), 295‒317. Ang, S., Van Dyne, L., Koh, C.K.S., Ng, K.Y., Templer, K.J., Tay, C., and Chandrasekar, N.A. (2007). Cultural intelligence: Its measurement and effects on cultural judgment and decision making, cultural adaptation, and task performance. Management and Organization Review, 3, 335‒371. Ashamalla, M.H. (1998). International human resource management practices: The challenge of expatriation. Competitiveness Review, 8(2), 54‒65. Bader, B., and Berg, N. (2013). An empirical investigation of terrorism-induced stress on expatriate attitudes and performance. Journal of International Management, 19(2), 163‒175. Barosa-Pereira, A. (2014). Building cultural competencies in coaching: Essay for the first steps. Journal of Psychological Issues in Organizational Culture, 5(2), 98‒112. Bhagat, R.S., and Prien, K.O. (1996). Cross-cultural training in organizational contexts. In D. Landis and R.S. Bhagat (eds), Handbook of Intercultural Training (2nd edition) (pp. 216‒230). Thousand Oaks, CA: Sage Publications. Bhawuk, D.P.S. (2001). Evolution of culture assimilators: Toward theory-based assimilators. International Journal of Industrial Relations, 28, 141‒163. Black, J.S., and Gregersen, H.B. (1991). The other half of the picture: Antecedents of spouse cross-cultural adjustment. Journal of International Business Studies, 22(3), 461‒478. Black, S., and Mendenhall, M. (1990). Cross-cultural training effectiveness: A review and theoretical framework for future research. Academy of Management Review, 15, 113‒136. Blake, B.F., Heslin, R., and Curtis, S.C. (1996). Measuring impacts of cross-cultural training. In D. Landis and R.S. Bhagat (eds), Handbook of Intercultural Training (2nd edition) (pp. 165‒182). Thousand Oaks, CA: Sage Publications. Bonache, J., Brewster, C., and Suutari, V. (2001). Expatriation: A developing research agenda. Thunderbird International Business Review, 43(1), 3‒20. Bonache, J., Sanchez, J.I., and Zárraga-Oberty, C. (2009). The interaction of expatriate pay differential and expatriate inputs on host country nationals’ pay unfairness. The International Journal of Human Resource Management, 20(10), 2135‒2149. Brewster, C., Bonache, J., Cerdin, J.L., and Suutari, V. (2014). Exploring expatriate outcomes. The International Journal of Human Resource Management, 25(14), 1921‒1937. Brookfield Global Relocation Services. (2013). 2013 Relocation Trends: Global Relocation Trends Survey. Retrieved on June 28, 2013 from www.brookfieldgrs.com. Caligiuri, P.M., and Stroh, L.K. (1995). Multinational corporation management strategies and international human resources practices: bringing IHRM to the bottom line. The International Journal of Human Resource Management, 6(3), 494‒507. Caligiuri, P.M., Phillips, J., Lazarova, M., Tarique, I., and Buergi, P. (2001). The theory of met expectations applied to expatriate adjustment: the role of cross-cultural training. The International Journal of Human Resource Management, 12(3), 357‒372. Chang, H. (2008). Cross-cultural adjustment of expatriate managers: A comparative study of Australian managers working in Korea and Korean managers working in Australia. Professional Doctorate thesis, Murdoch University. Retrieved April 2, 2014 from: http:// researchrepository.murdoch.edu.au/649/. Clapp-Smith, R., and Wernsing, T. (2014). The transformational triggers of international experiences. Journal of Management Development, 33(7), 662‒679. Cole, N., and Nesbeth, K. (2014). Why do international assignments fail? The expatriate families speak. International Studies of Management and Organization, 44(3) 66‒79. Collings, D.G., Morley, M.J., and Gunnigle, P. (2008). Composing the top management team in the international subsidiary: Qualitative evidence on international staffing in US MNCs in the Republic of Ireland. Journal of World Business, 43(2), 197‒212. Collings, D.G., Scullion, H., and Dowling, P.J. (2009). Global staffing: A review and the-

GARAVAN 9781781954171 PRINT.indd 332

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­333 matic research agenda. The International Journal of Human Resource Management, 20(6), 1253‒1272. Crocitto, M.M., Sullivan, S.E., and Carraher, S.M. (2005). Global mentoring as a means of career development and knowledge creation: A learning-based framework and agenda for future research. Career Development International, 10(6–7), 522–537. Dowling, P., Festing, M., and Engle Sr., A.D. (2009). International Human Resource Management: Managing People in a Multinational Context (5th edition). Mason, OH: Thomson Higher Education. Earley, C. (2002). Redefining interactions across cultures and organizations: Moving forward with cultural intelligence. Research in Organizational Behavior, 24, 271‒299. Gupta, R., Banerjee, P., and Gaur, J. (2012). A key challenge in global HRM: Adding new insights to existing expatriate spouse adjustment models. Qualitative Report, 17(88), 1‒30. Haile, S., Jones, M.D., and Emmanuel, T. (2013). Cultural differences: The challenges faced by expatriates. European Journal of Management, 13(3), 17‒24. Harrison, D.A., and Shaffer, M.A. (2005). Mapping the criterion space for expatriate success: Task- and relationship-based performance, effort and adaptation. The International Journal of Human Resource Management, 16(8), 1454‒1474. Harvey, M., and Buckley, M. (1997). Managing inpatriates: Building a global core competency. Journal of World Business, 32(1), 35–52. Harvey, M., Novicevic, M.M., and Kiessling, T. (2002). Development of multiple IQ maps for use in the selection of inpatriate managers: a practical theory. International Journal of Intercultural Relations, 26, 493‒524. Harvey, M., Novicevic, M.M., and Speier, C. (1999). Inpatriate managers: How to increase the probability of success. Human Resource Management Review, 9(1), 51‒81. Harvey, M., Novicevic, M.M., and Speier, C. (2000). Strategic global human resource management: The role of inpatriate managers. Human Resource Management Review, 10(2), 153‒175. Harvey, M., Reiche, B.S., and Moeller, M. (2011). Developing effective global relationships through staffing with inpatriate managers: The role of interpersonal trust. Journal of International Management, 17(2), 150‒161. Harzing, A.W.K. (1995). The persistent myth of high expatriates failure rates. The International Journal of Human Resource Management, 6(2), 457‒474. Heenan, D., and Perlmutter, H. (1979). Multinational Organization Development. New York: Addison-Wesley. Hemmasi, M., Downes, M., and Varner, I.I. (2010). An empirically-derived multidimensional measure of expatriate success: Reconciling the discord. The International Journal of Human Resource Management, 21(7), 982‒998. Insch, G., and Daniels, J. (2002). Causes and consequences of declining early departures from foreign assignments. Business Horizon (November–December), 39‒48. Jassawalla, A.R., Asgary, N., and Sashittal, H.C. (2006). Managing expatriates: The role of mentors. International Journal of Commerce and Management, 16(2), 130‒140. Johnson, E.C., Kristof-Brown, A.L., Van Viannen, A.E.M., De Pater, I.E., and Klein, M.R. (2003). Expatriate social ties: Personality antecedents and consequences for adjustment. International Journal of Selection and Assessment, 11, 277‒288. Kim, H.D., and Tung, R.L. (2013). Opportunities and challenges for expatriates in emerging markets: An exploratory study of Korean expatriates in India. The International Journal of Human Resource Management, 24(5), 1029‒1050. Ko, H.C., and Yang, M.L. (2011). The effects of cross-cultural training on expatriate assignments. Intercultural Communication Studies, 20(1), 158‒174. Kraimer, M.L., Shaffer, M.A., and Bolino, M.C. (2009). The influence of expatriate and repatriate experiences on career advancement and repatriate retention. Human Resource Management, 48(1), 27‒47. Lazarova, M.B., and Caligiuri, P. (2001). Retaining repatriates: The role of organizational support. Journal of World Business, 36(4), 389‒402. Lazarova, M.B., and Thomas, D. (2012). Expatriate adjustment and performance revisited.

GARAVAN 9781781954171 PRINT.indd 333

22/09/2017 16:32

334  Handbook of international human resource development In G.K. Stahl, I. Björkman, and S. Morris. (eds), Handbook of Research in International Human Resource Management (pp. 271‒292). Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing. Lazarova, M.B., Westman, M., and Shaffer, M.A. (2010). Elucidating the positive side of the work–family interface on international assignments: a model of expatriate work and family performance. Academy of Management Review, 35(1), 93‒117. Lee, H.W. (2007). Factors that influence expatriate failure: An interview study. International Journal of Management, 24(3), 403‒413. Lee, L.Y., and Kartika, N. (2014). The influence of individual, family, and social capital factors on expatriate adjustment and performance: The moderating effect of psychology contract and organizational support. Expert Systems with Applications, 41(11), 5483‒5494. Littrell, L.N., Salas, E., Hess, K.P., Paley, M., and Riedel, S. (2006). Expatriate preparation: A critical analysis of 25 years of cross-cultural training research. Human Resource Development Review, 5(3), 355‒388. Mahajan, A., and De Silva, S.R. (2012). Unmet role expectations of expatriates, host-­ country national support, and expatriate adjustment. International Journal of CrossCultural Management, 12(3), 349‒360. Mansour, B.E., and Wood, E. (2010). Cross-cultural training of European and American managers in Morocco. Journal of European Industrial Training, 34(4), 381‒392. McEvoy, G.M. (2011). Reducing the cost of expatriation in austere times: A case study of two organizations. Journal of International Management Studies, 6(1), 1‒10. McLean, G.N. (2006). Organization Development: Principles, Processes, Performance. San Francisco, CA: Berrett-Koehler Publishers. McLean, G.N., and McLean, L.D. (2001). If we can’t define HRD in one country, how can we define it in an international context? Human Resource Development International, 4(3), 313‒326. McLean, G.N., and Tolbert, A. (1997). Global Effectiveness Profile. Arden Hills, MN: ECCO. McNulty, Y. (2012). ‘Being dumped in to sink or swim’: An empirical study of organizational support for the trailing spouse. Human Resource Development International, 15(4), 417‒434. Mendenhall, M., and Oddou, G. (1985). The dimensions of expatriate acculturation: A review. Academy of Management Review, 10(1), 39‒47. Minbaeva, D., Pedersen, T., Björkman, I, Fey, C.F., and Park, H.J. (2003). MNC know­ ledge transfer, subsidiary absorptive capacity, and HRM. Journal of International Business Studies, 34(6), 586‒599. Moeller, M., Harvey, M., and Williams, W. (2010). Socialization of inpatriate managers to the headquarters of global organizations: A social learning perspective. Human Resource Development Review, 9(2), 169‒193. Nery-Kjerfve, T.N., and McLean, G.N. (2012). Repatriation of expatriate employees, knowledge transfer, and organizational learning: What do we know? Journal of European Training and Development, 36(6), 614‒629. Nooriafshar, M., and Vibert, C. (2012). A heuristic model – the case of challenges facing Western business people in Japan. Asian Journal of Social Sciences and Humanities, 1(1), 66‒75. Oddou, G., Osland, S.J., and Blakeney, N.R. (2009). Repartriating knowledge: Variables influencing the transfer process. Journal of International Business Studies, 40(2), 181‒199. Olivero, G., Bane, K.D., and Kopelman, R.E. (1997). Executive coaching as a transfer of training tool: Effects on productivity in a public agency. Public Personnel Management, 26(4), 461‒469. Pedersen & Partners Executive Search. (2012). Top line survey results: Expatriate country managers. Retrieved April 2, 2014, at: http://www.pedersenandpartners.com/articles/ top-line-survey-results-expatriate-country-managers-0. Pruetipibultham, O. (2012). Developing human resource development interventions to

GARAVAN 9781781954171 PRINT.indd 334

22/09/2017 16:32

IHRD: developing expatriates and inpatriates  ­335 aid expatriates’ cultural adaptation: Insights to the Javanese culture. Human Resource Development International, 15(1), 109‒117. Pruetipibultham, O., and McLean, G.N. (2010).  The influence of social networks on the cultural adjustment of Thai expatriates in the Lao PDR and Indonesia. Human Resource and Organization Development Journal, 4(2), 11‒37. Rahim, S.A. (2012). Compensation issues relating to expatriate managers: A review of related literature. ASA University Review, 6(2), 185‒196. Reiche, B.S. (2006). The inpatriate experience in multinational corporations: An exploratory case study in Germany. The International Journal of Human Resource Management, 17(9), 1572‒1590. Reiche, B.S. (2012). Want to become more culturally competent? Start with your cultural self-awareness. Retrieved April 2, 2014, at: http://blog.iese.edu/expatriatus/2012/12/05/ want-to-become-more-culturally-competent-start-with-your-cultural-self-awareness/. Reiche, B.S., Kraimer, M.L., and Harzing, A.W. (2008). Inpatriates as agents of crossunit knowledge flows in multinational corporations. In P. Sparrow (ed.), Handbook of International Human Resource Management (pp. 151‒170). Oxford: Wiley-Blackwell. Shaffer, M.A., and D.A. Harrison (2001). The forgotten partners of international assignments: Development and test of a model of spouses adjustment. Journal of Applied Psychology, 86, 238‒254. Sharma, N., Bhatt, J.K., and Singh, M. (2014). Effectively managing expatriate assignments with HRM policies and practices. Journal of Resources Development and Management, 3, 17‒21. Shortland, S. (2011). Networking: A valuable career intervention for women expatriates? Career Development International, 16(3), 271‒292. Simeon, R., and Fujiu, K. (2000). Cross-cultural adjustment strategies of Japanese spouses in Silicon Valley. Employee Relations, 22(6), 594‒611. Stroh, L.K. (1995). Predicting turnover among repatriates: Can organizations affect retention rates? The International Journal of Human Resource Management, 6(2), 443‒456. Stroh, L.K., Gregersen, H.B., and Black, J.S. (2000). Triumphs and tragedies: Expectations and commitments upon repatriation. The International Journal of Human Resource Management, 11(4), 681‒697. Toh, S.M., and DeNisi, A.S. (2005). A local perspective to expatriate success. The Academy of Management Executive, 19(1), 132‒146. Torbiorn, I. (1985). The structure of managerial roles in cross-cultural settings. International Studies of Management & Organization, 15(1), 52‒74. Torbiorn, I. (2005). Staffing policies and practices in European MNCs: Strategic sophistication, culture-bound policies or ad hoc reactivity. In H. Scullion and M. Linehan (eds), International Human Resource Management: A Critical Text (pp. 47–68). Basingstoke: Palgrave Macmillan. Vidal, E.S., Valle, R.S., and Aragon, I.B. (2008). International workers’ satisfaction with the repatriation process. The International Journal of Human Resource Management, 19(9), 1683‒1702. Wang, X., and Kanungo, R.N. (2004). Nationality, social network and psychological wellbeing: Expatriates in China. The International Journal of Human Resource Management, 15(4‒5), 775‒793. Zhuang W.L., Wu, M., and Wen, S.L. (2013). Relationship of mentoring functions to expatriate adjustments: Comparing home country mentorship and host country mentorship. The International Journal of Human Resource Management, 24(1), 35‒49.

GARAVAN 9781781954171 PRINT.indd 335

22/09/2017 16:32

16. IHRD and global careers

Michelle Hammond, Deirdre O’Shea and Jill Pearson

INTRODUCTION Global careers can take many different forms for individuals, their families, and their organisations. The motivation for the overseas experience may come from the organisation, the individual or external pressure, and may differ dramatically in the levels of support offered. The term ‘career’ refers to an evolving sequence of experiences that individuals take on over their lifetimes (Arthur, Hall and Lawrence, 1989; Niles and Harris-Bowlsbey, 2002). Careers, then, refer to a process or a sequence, rather than position or progression. Global careers can likewise be conceptualised with the addition that part of those experiences take place in another country (Dickmann and Baruch, 2011). These definitions highlight that the focus of careers is on individuals’ experiences and are not limited to work, occupations or jobs. Furthermore, careers can be understood from an organisational perspective, in which a career is a structural property of an occupation or organisation (Adamson, Doherty and Viney, 1998; Barley, 1989). Within this perspective, we might consider a career in management as being comprised of a set of positions typically held by successful managers including middle manager, senior manager, and so on, or as a mobility path within a certain organisation. A career in this context may be relevant for succession planning, for example. For the purposes of this chapter we take the individual approach as the primary focus, while also acknowledging the organisational approach. In recent times, the global economy has been and is continuing to change rapidly due to technological innovations, economic fluctuations, and the rise of service and knowledge work, among others (Gunz and Peiperl, 2007). Goods, services, and capital frequently flow across borders, and organisations need to move beyond a local focus for growth, innovation, and efficiency. The context, where many people complete work and craft their careers, has changed as well. Work and careers are now interwoven within a global context. The implications for the study of careers can be examined in at least three ways: (a) by examining cross-border work 336

GARAVAN 9781781954171 PRINT.indd 336

22/09/2017 16:32

IHRD and global careers  ­337 experiences, such as expatriation and migration, (b) by examining the cross-cultural perspectives on careers, such as how careers are understood in various cultural contexts, and (c) by examining how individuals make sense of careers in light of a global economy and adjust to global changes (Tams and Arthur, 2007). Relevance to IHRD, therefore, includes notions of international experiences of employees, a culturally-contextualised understanding of careers, as well as a general global perspective of one’s career. Global careerists seek to “develop skills and networks relevant to that economy and connect to the wider world in its diversity of cultures and geographies” (Cappellen and Janssens, 2010, p. 687). These include building knowledge and skills that are valuable internationally and may include a ‘global mindset’ or cosmopolitan orientation (Shokef and Erez, 2008). Thomas, Lazarova and Inkson (2005) summarise three changes to the international business environment that influence the global aspect of careers. First, the very nature of the competitive environment is truly global through the arrival of free trade and cooperative strategic firm-tofirm alliances or industry networks. In this context, individuals might view their career in these networks of firms rather than a single organisation. Second, the development of global leaders for a firm’s success has been highlighted as the most important goal of human resources for organisational success (Csoka and Hackett, 1998). Within a careers perspective, identifying talent on a global basis, identifying competencies in support of building global leadership, and identifying ways in which global leader competence can be developed inside or outside an overseas assignment become relevant. Finally, profiles of employees who are interested in overseas assignments are changing, and coinciding with this demographic change come different perspectives on careers. Whereas women’s participation in expatriate experiences has risen in recent years, these experiences are still primarily (approximately 80 per cent) completed by men (Brookfield Global Relocation Services, 2009). Women may face several barriers to traditional expatriate experience and many have looked to other forms of global careers. For example, Hutchings, Lirio and Metcalfe (2012) report: [W]hereas North American women stressed that global work performed through international business travel and virtual work allowed them to balance work and family demands and to achieve a global profile, the Middle Eastern women said that due to societal values and lack of government and organisational support it would actually be harder for them to undertake such forms of global work or short-term international assignments, so they would favour traditional long-term postings abroad. (Hutchings, Lirio and Metcalfe, 2012, p. 1781)

GARAVAN 9781781954171 PRINT.indd 337

22/09/2017 16:32

338  Handbook of international human resource development Further, dual career partnerships bring added complexity (Mäkelä, Känsälä and Suutari, 2011). Taking these together, the understanding of careers cannot be taken out of an international context. Following on from these changes, the following questions are relevant: (1) How have careers changed with the global economy? (2) What does career success mean considering changes to the global economy? and (3) How do organisations and careerists manage the transitions associated with global work experiences? When discussing these questions, we engage in the debate around where the responsibility for career management lies, particularly in a global context. We present a brief review of the literature on these topics by identifying and discussing challenges and opportunities for IHRD then discussing implications for IHRD research and practice. As “the global economy is not only a context for strategic action by organizations, but also by individuals who seek to position their career identity within it” (Cappellen and Janssens, 2010, p. 691), we highlight the need for integration between the employer and employee perspective on global careers.

TRADITIONAL VERSUS CONTEMPORARY CAREER CONCEPTS Until the late 1980s, career scholars focused almost exclusively on what are now termed traditional careers. Traditional careers typically took place within a single organisation, where employees exchanged loyalty and hard work for an implied promise of job security and steady, upward progression (for recent discussions see Baruch, 2006; Chudzikowski, 2012; Sullivan and Baruch, 2009). The typical career holder was a male breadwinner who had a wife to support him on his ascent (Schneer and Reitman, 2002). In the global context, these careers often incorporated at least one international assignment. Those who did not fit this norm of upward, linear careers were rarely studied and when they were, they were typically associated with negative career outcomes (for example, Morrison, 1977). The economic downturn in the 1980s and 1990s resulted in changes to careers and to how scholars thought about careers. Major layoffs and the downsizing of organisations that had been able to withstand such pressures in the past meant that the psychological contract had changed; employers could no longer offer jobs for life (Rousseau, 1989, 1995). Employment security was replaced by a new concept: employability security and the psychological contract, which had been relational, was changed to one that was transactional. Employees had to take responsibility for their own career – ensuring that their knowledge, skills and abilities were up-to-date

GARAVAN 9781781954171 PRINT.indd 338

22/09/2017 16:32

IHRD and global careers  ­339 and had value on the labour market – rather than assuming that a benevolent, paternalistic employer would be accountable for them and their career progression (Hall, 1996a, 1996b). Flatter structures meant that individuals could no longer expect regular, upward career progression. Lateral and even downward moves within an organisation and/or moves across organisations were now considered the norm (Arthur, 1994b; Arthur and Rousseau, 1996). As discussed below, notions of success that were once assessed objectively such as by the hierarchical level reached, were now determined subjectively by individuals themselves. Career commentators, who emphasised the changes that were occurring, introduced new terms into the careers lexicon, the most important of which were: boundaryless careers and protean careers. The boundaryless career is the antonym of the ‘bounded’ or ‘organisational’ career (Arthur, 1994a) and includes movement across both physical and psychological boundaries. Physical mobility refers to movement between jobs, organisations, industries, occupations and countries whereas psychological mobility refers to one’s perception of one’s own capacity to make transitions. A bartender who had worked in a local pub for many years has low physical mobility may also have low psychological mobility if not building on skills and preparing for potential career moves, whereas a software engineer who moves from employer to employer in Silicon Valley while building valuable skills and competencies would have high physical and psychological mobility (Sullivan and Arthur, 2006). Protean career attitudes are needed to survive and prosper within a boundaryless world. The Greek god Proteus, who could change his shape at will, was a metaphor used by Hall (Hall, 1996a, 1996b; Hall and Moss, 1998) to describe individuals who could retain their marketability by repackaging their knowledge, skills and abilities to fit the ever changing work environment. According to Hall, protean careerists take responsibility for their own career; they value freedom, flexibility, intrinsic rewards and continuous learning (For critical reviews see Gubler, Arnold and Coombs, 2014; Inkson et al., 2012; Sullivan and Baruch, 2009). This contemporary career lens meant the focus on global careers, which had been almost exclusively on corporate expats, broadened to include self-initiated expats and others (Shaffer et al., 2012). Self-initiated expats exemplify both protean and boundaryless careers: they manage their own career and they choose to cross international borders. While some are still forecasting how changeable careers will be in the future (Future Workplace, 2012), many researchers have been questioning whether careers have actually changed at all, or whether they have changed to the extent that it has been suggested in the literature (Clarke, 2013). Sullivan and Baruch (2009, p. 1556) stated that “Career ­scholars. . .may be

GARAVAN 9781781954171 PRINT.indd 339

22/09/2017 16:32

340  Handbook of international human resource development guilty of shifting from one extreme to another.” Similarly, Baruch (2006) argued that the changes have not been “overwhelming and colossal” (p.125) as suggested by many scholars. Hall (1996a), who had originally declared that the traditional, organisational career was dead has reevaluated his position; “We were wrong: the organizational career is alive and well” (Hall and Las Heras, 2009, p. 182). Careers are not as predictable and rigid as depicted in the traditional model; nor are they chaotic, dynamic and boundaryless as depicted in the new models. Almost two decades ago, Guest and Davey (1996) suggested even with downsizing and flatter organisational structures, very few organisations have introduced fixed-term contracts for managers and most are hiring for potential career rather than just for the current vacant position. More recently, Rodrigues and Guest (2010) contended that stronger empirical evidence is needed to support the widely accepted claim that organisational careers have been replaced by boundaryless careers. The empirical evidence that does exist is mixed. It seems that longterm employment is actually growing. Reporting on data from the UK Labour Force Survey, the European Labour Force Survey, the Bureau of Labor Statistics in the United States, and Statistics Canada, Doogan (2001, 2009, 2011) found that the percentage of people working with the same employer for ten years or longer has actually grown significantly in recent years. This growth in long-term employment was far greater than the growth in total employment during the same period and happened in service and production sectors, growing and declining sectors, private and public sectors and for men as well as women. Furthermore, it seems that many people, including recent graduates, actually want the upward, intraorganisational progression and long organisational tenure associated with traditional careers (King, 2003; Sturges and Guest, 2001; Wajcman and Martin, 2001). Alternatively, in a comparison of two cohorts of Austrian business graduates, the 1990 cohort had less traditional careers than their 1970 counterparts (Chudzikowski, 2012). Although upward, withinorganisation transitions were the most frequent form for both groups, the younger cohort experienced significantly more career transitions and more complex transitions in their first fifteen years of working than did the cohort who graduated twenty years earlier. The contradictory evidence may highlight what many careers scholars believe: traditional careers sit side-by-side with newer career forms. Scholars who have devised categorisation schemes include traditional careers as one of the many forms of careers that currently exist (for example, Pfeffer and Baron, 1988; Rousseau, 1989; Sullivan, Carden and Martin, 1998). Even advocates of the newer career forms acknowledge that traditional careers still exist, if only for “privileged workers” (Hall

GARAVAN 9781781954171 PRINT.indd 340

22/09/2017 16:32

IHRD and global careers  ­341 and Moss, 1998, p. 24), working in a limited number of large, stable organisations (Peiperl and Baruch, 1997). This distinction resembles the dichotomy identified in dual labour market theory (Doeringer and Poire, 1971) whereby only employees in the primary sector (also known as core, permanent or relational workers) benefit from membership of their organisation’s internal labour market where they are protected from external competition. Recent work suggests high potential employees and key experts were more likely to have traditional-organisational careers whereas average performers were more likely to have boundaryless features to their careers (Dries, Van Acker and Verbruggen, 2012). It seems while traditional careers may not exist for all employees, they do exist for employees who are highly valued by their organisation, employees like corporate expats who are part of their organisation’s high potential programme (Gratton and Pearson, 1994; McCarthy and Pearson, 2002). Whereas the evidence is not conclusive, particularly in an international context where the career context is not homogeneous (Mayrhofer et al., 2004; Sturges, Conway and Liefooghe, 2008), it is clear that the stark contrast between the traditional notions of careers and our new notions has been overplayed. Furthermore, careers of some people, at least for part of their working lives, operate in very traditional ways. Finally, it is important to note that there may be differences in the extent to which individuals’ desire traditional versus boundaryless careers. It is arguable if one can have a successful traditional career in a global environment. This brings the notion of defining career success to the forefront.

GLOBAL CAREER SUCCESS Most researchers conceptualise career success as having both objective and subjective elements. Objective (or extrinsic) career success is often measured by the position in an organisation and/or the rate of progress through an organisational hierarchy or pay structure (Abele and Spurk, 2009b; Arnold and Cohen, 2008). Objective success can be observed and evaluated by others. Alternatively, subjective (or intrinsic) career success is considered to be an individual’s evaluation of their own career (Abele and Spurk, 2009a; Arnold and Cohen, 2008; Dries, Pepermans and Carlier, 2008), and often includes reactions to actual and anticipated career-related attainments across a broader timeframe than one’s immediate job, and across a wider range of outcomes such as a sense of identity, purpose and work–life balance (Heslin, 2005). Whereas the notions of subjective and objective career success have been around since first introduced by (Hughes, 1937), the gaining popu-

GARAVAN 9781781954171 PRINT.indd 341

22/09/2017 16:32

342  Handbook of international human resource development larity of protean and boundaryless careers, discussed above, changed the focus of career scholars from objective to subjective criteria. First of all, identifying and measuring success objectively became more difficult as careers became more boundaryless. Second, researchers who promoted increased agency argued that success can and should be assessed by individuals themselves. According to Hall (1996b, p. 8) “The ultimate goal of the career is psychological success, the feeling of pride and personal accomplishment that comes from achieving one’s most important goals in life, be they achievement, family happiness, inner peace, or something else.” The focus on careers, beyond traditional careers, led to correspondingly broader notions of career success. Although evaluations of subjective career success are determined by individuals themselves, they are dependent on a comparison standard: either one’s personal standards or the attainments and expectations of others. Self-referent subjective success is frequently measured as satisfaction with one’s career, job, or life, or beliefs about employability, as the individual compares his or her career to personal standards and aspirations (Arnold and Cohen, 2008; Boudreau and Boswell, 2001). In otherreferent subjective success, an individual compares his/her career to an external standard, such as a reference group or a reference person (Abele and Spurk, 2009a). The reality is that people often define their own personal criteria of career success (Arnold, 2011). For example, Heslin (2005) suggests that both contextual and individual factors are associated with the relative salience of objective and subjective criteria of career success. Careers researchers have recently started asking about the relationship between objective and subjective success over time. Do those who move up quickly, whether within or across boundaries, also feel more successful, for example? In an investigation of the inter-relationships between objective and subjective career trajectories over time, Abele and Spurk (2009a) found a curvilinear growth path for objective success, whereby there was a steady increase in objective success for the first seven years of professional experience, and after this the growth slowed. They found strong evidence that both forms of subjective success (other- and self-referent) influenced the changes in objective success over time. In other words, those who move up quickly did perceive themselves as more successful, but more than that, those who feel successful subjectively lead to objective indicators of success. Hence, the subjective nature of career success is important to consider in the context of global human resource development. Not only will subjective career success influence the extent to which an individual will experience job and/or career satisfaction if provided with an opportunity to ‘globalise’ their career, but it will also influence the extent to which an individual will perceive a global career as successful. This view

GARAVAN 9781781954171 PRINT.indd 342

22/09/2017 16:32

IHRD and global careers  ­343 suggests that individuals will differ in their perception of an international assignment or international move abroad as a factor contributing to or inhibiting their success. Determinants of these differing perceptions may be individual (for example, protean or boundaryless career attitudes; goal orientations), contextual (for example, the global economy) or organisational (for example, whether the request to move abroad is considered a positive or negative action on the part of the organisation’s leaders and managers) (Joo, Park and Oh, 2013; O’Shea and Kirrane, 2008; O’Shea, Monaghan and Ritchie, 2014; Shaffer et al., 2012). Definitions of success may also vary by cultural context, as countries differ in their power structure, taxation systems, economic and social stratification and markers of status (Heslin, 2005; Hollenbeck and McCall, 2003). For example, whereas the development of technical skills was an important indicator of career success for Germans and therefore value overseas experience, being labelled as ‘high potential’ was most important for French managers and only valued overseas experiences if it was instrumental in receiving such an accolade (Stahl and Cerdin, 2004). Within a global careers context, criteria for both objective and subjective career success are likely to become even more diverse, influenced by national cultural contexts, local labour markets and industry considerations (Arnold and Cohen, 2008; Dries, 2011; Lau, Shaffer and Au, 2007). Furthermore, and most relevant to global careers, is that employees are moving away from within-organisation perspectives of career success to success that evolves across organisational, national and international boundaries (De Vos, De Clippeleer and Dewilde, 2009). A number of factors are pertinent to consider when examining career success in the context of global careers. First, the perception of free choice or personal agency in deciding to work globally is an important consideration for subjective perceptions of success. Individuals who choose to move abroad or to take an international assignment normally do so because they feel it is something that they want to do, or something that will be of benefit to them in their job and/or career (Stahl, Miller and Tung, 2002). On the other hand, if an individual feels that they have no choice but to emigrate in order to progress their career (for example, Ahmed from the examples in the introduction), the global aspect of their career is likely to be viewed less desirably. Arnold and Cohen (2008) suggest that the extent to which a person has avoided involuntary unemployment should be considered as a criterion for career success, and the salience of this criterion may precede a choice to emigrate not by preference. A further possibility is that an individual may choose to engage in global work by changing both the organisation and the country in which they work. Although still classified as a type of immigrant, the individual here has made a free choice to

GARAVAN 9781781954171 PRINT.indd 343

22/09/2017 16:32

344  Handbook of international human resource development engage in global work, and is likely to perceive the global aspect of their career to be a key element in furthering their career. Second, global career success may depend on the career stage of the individual. If the individual is in the early stages of their career stage, they may see the move abroad as an opportunity to gain valuable experience either in terms of life experience, or experience in their field or profession (McDonald and Hite, 2008). On the other hand, if the individual is in the middle to late stages of their career, they may see global work or international work experience as less desirable. This may be further complicated by work-family considerations that are more likely to be pertinent in middle career stages than early ones. For example, research by Pearson et al. (2011) demonstrated that perceptions of subjective success of Polish immigrants to Ireland changed over time. Whereas immigrants were content in being ‘underemployed’ temporarily to build language skills, earn money, and enjoy non-work pursuits, many began to experience dissonance after some period of time had passed. Past research on jobs and careers have been criticised for neglecting to incorporate the context of time (Fried et al., 2007), but it is clear from these examples that a temporal consideration of career stages is a key aspect determining the extent to which global careers are viewed positively or negatively by individuals. Finally, it is important to contrast within- and cross-organisational assignments. Corporate expatriation is a frequent means of achieving heightened career success within an organisation, contributing to international experience, global career competencies, cultural adaptability, a global mindset and career capital, which are valued by many organisations (Dickman and Harris, 2005; Harvey et al., 2013; Pulakos et al., 2000; Takeuchi and Chen, 2013). However, whether this expatriation does indeed increase objective career success depends on a number of factors, which we discuss in more detail below. Importantly, the significance of these competencies and experiences depends on how an individual deploys them and how other people evaluate them (Arnold, 2011). Perception of control with regard to international work experience, career and life stage of the individual, and within versus cross-­ organisational assignment may differentially affect the success of the global experience; yet they all involve transitions for individuals. Hence, we now turn our focus to the consideration of career transitions.

GARAVAN 9781781954171 PRINT.indd 344

22/09/2017 16:32

IHRD and global careers  ­345

CAREER TRANSITIONS IN AN INTERNATIONAL CONTEXT Career transitions refer to movement from one career stage to another. Schlossberg (1984) identified a tripartite categorisation of transitions: nonnormative events, normative role transitions, and persistent occupational problems. Non-normative events are neither anticipated nor voluntary, may be negative events leading to crisis such as being fired or made redundant or unanticipated positive or neutral events such as promotion or transfer. Normative transitions are anticipated and voluntary and may include entering the workforce, re-entry following an extended leave (for example, maternity leave), or retirement. In the context of global careers, many transitions may be normative such as temporary overseas experiences, extended expat assignments, or self-initiated migrations. Finally, persistent occupational problems may be less dramatic transitions than the aforementioned events, but may persist and cumulate over a longer period of time leading to a transition crisis. Such problems may include unsatisfactory working conditions, job pressure, or problematic relationships with bosses or colleagues. Career transitions often have a profound effect on a professional’s psychological and social status, relationships within the family, physical health and well-being, and lifestyle (Jokisaari, 2003). Liu, Englar-Carlson, and Minichiello (2012) suggest that during transitions, individual differences and identity (personhood), relationships (both work and non-work), lifestyle, and factors of the work environment interact to determine the successful navigation through the transition. Furthermore, changes to one’s identity frequently come through career transitions (Ibarra, 1999). An international experience may include a change to one’s identity, such as to view one’s self as more cosmopolitan or a world citizen. Transitions involve the linking of work experiences through the sequence of one’s career. When the experiences are marked with a high level of both career competence transference and coping competence transference, transitions are smoother and more successful (Haynie and Shepherd, 2011). Career competence transference refers to links between knowledge, skills, and abilities gained in one work role that are linked and useful in the emerging new role, whereas coping competence transference refers to knowledge, skills, and abilities that are gained as a result of coping with a trauma or event which brought on a transition to the emerging new work experience. Successful transitions promote growth, satisfaction, and engagement when learning both on-the-job (career competence) and offthe-job (coping competence) is applicable to a new role. Transitions may be viewed as a ‘mini-career cycle’ in and of themselves

GARAVAN 9781781954171 PRINT.indd 345

22/09/2017 16:32

346  Handbook of international human resource development (Dickmann and Baruch, 2011). Each transition, such as an experience working overseas, may involve a process of entry, advancement, reevaluation, and reinforcement. At the early stages of a new experience, the expatriate, for example, will need to learn and cope with a new culture, regulations, and norms, duties both inside and outside of the workplace (entry). After successful navigation of the entry stage, the expatriate may advance in performance and learning from the experience (advancement). Re-evaluation may occur as one considers if the benefits outweigh the sacrifices and make a decision to progress with the experience or return. After a decision is made, the choice to continue is either reinforced or the cycle is begun again through another transition (Dickmann and Baruch, 2011). The notion of a boundaryless career is one marked by transitions (Thomas, Lazarova and Inkson, 2005) in that career competencies and labour market value are built through transfers across boundaries, whether they be physical or psychological. As such, expat experiences and self-initiated migrations are the two most frequently examined transitions in the global careers field. It is also important to understand career transitions in light of our discussion on career success. Although international assignments are meant to promote career development opportunities for employees upon repatriation (objective career success), they often fail to do so. A number of studies suggest repatriates report negative, rather than positive, career consequences such as limited opportunities to use competence developed internationally (Adler, 2002), less satisfying and challenging work upon return, and a perceived lack of value of the experience (Caligiuri et al., 2001; Stahl, Miller and Tung, 2002). Many decisions to take international assignments are based on internal, rather than external, career success. In other words, these individuals are motivated by opportunities for personal development, rather than intra-company hierarchical advancements. These opportunities might not be available at home and may include opportunities to develop general management skills, acquire a global mindset, and build international network contacts (Gregersen, Morrison and Black, 1998; Mendenhall, 2001). Similarly, others have noted that individuals transitioned better after traumatic life events when they were motivated by subjective rather than objective measures of success (Haynie and Shepherd, 2011).

IHRD INTERVENTIONS AND GLOBAL CAREERS There are a number of points at which organisations can support the success of global careers of employees because these types of careers can manifest themselves in many different forms. First, and perhaps, most

GARAVAN 9781781954171 PRINT.indd 346

22/09/2017 16:32

IHRD and global careers  ­347 obviously, organisational interventions to support employees through cross-border work experiences, such as expatriation and international assignments. Global careers are relevant across the range of IHRD interventions such as selection, training and development, and performance appraisal. Research has demonstrated the effectiveness of training and supports prior to and during international assignments for improved adjustment and job effectiveness. For example, supports for expatriates and their families include language and cultural training, career development and psychological counselling, assistance with logistical details around the transition, family mentoring, and social or networking activ­ ities (Bhatti, Battour and Ismail, 2013). Whereas organisations may often consider supports for expatriates prior to and during their international experiences, they should not overlook interventions providing support for their return. IHRD repatriation interventions should start prior to the international experience by providing career counselling relevant to providing clarity about career options upon return (Ahad, Osman-Gani and Hyder, 2008). Further, training programmes can support repatriates from experiencing reverse culture shock and help organisations to benefit from the increased knowledge and experience of the employee (Nery-Kjerfve and McLean, 2012). Relatedly, IHRD interventions focused on expanding the global mindset and sensitivity of the entire organisation can be beneficial for setting a positive international culture in which the individual can return. For example, research on diversity training programmes have shown positive outcomes such as improved awareness and attitudes towards diversity issues, improved skills in handling diversity issues, improved relationships, greater tolerance towards minorities, and more confidence in working with diverse groups (Alhejji et al., 2015). Further, leadership development and coaching are beneficial for enhancing the global mindset of organisational leaders as is promoting multiple language development and international experiences of leaders themselves (Javidan and Bowen, 2013). Additionally, it would be useful to consider expatriation within the context of a broader talent management framework and linked within a strategic approach to human resource management (Cerdin and Brewster, 2014). Global talent management initiatives (Schuler, Jackson and Tarique, 2011) are needed to effectively manage through the complex, non-routine, dynamic, and often ambiguous global environment. These involve the use of specific HR policies and practices systematically to confront the global talent challenges that a firm experiences and may include policies on location and relocation management, planning and forecasting, staffing (to include attracting, selecting, retaining, reducing and removing), training and developing, and performance management. Best

GARAVAN 9781781954171 PRINT.indd 347

22/09/2017 16:32

348  Handbook of international human resource development practice with reference to talent management from a global perspective would include the use of transparent selection, performance appraisal, and promotion or rewards systems in support for retaining top talent (Baruch and Reis, 2016). Most importantly, these policies and practices need to be strategically matched with the organisation’s strategy and talent management situation to sustain a global competitive advantage (Schuler, Jackson and Tarique, 2011).

CHALLENGES AND OPPORTUNITIES FOR IHRD We believe consideration of IHRD through a careers lens is both powerful and necessary. Cappellen and Janssens (2010, p. 688) specify, “The power of career as a concept is exactly that it links the individual to the organ­ ization and to the wider, changing social world.” Successful IHRD initiatives need to simultaneously consider the employee, employer and wider context. We suggest the consideration of both individual and employer perspective within the wider context presents both challenges and opportunities for IHRD, and the implication of the understanding global careers lies in this multiple consideration. One exemplary model, Dickmann and Baruch (2011) framework of global careers highlights both these multiple considerations. For the organisation, career management, next move and reintegration, career planning and progression, knowledge management, international development, performance management, and resourcing, selection, and preparation are highlighted as the challenges for global careers. Likewise, individual international careering, use of career capital and overseas experiences, family and partner issues, adjustment, and preparation, planning, and negotiation are primary concern from the individual perspective. An approach that integrates both perspectives within a global context is required, especially with regard to successful overseas assignments and career management. Furthermore, Yan, Zhu and Hall (2002) present a theoretical model in which the success of overseas assignments lies in the alignment of organ­ isational and individual expectations throughout the process of leave and return. Success itself includes not only completion of the assignment, achievement of objectives, and individual development, but also the continued development of the individual, as well as the retention of the individual, and utilisation and transfer of new expertise. In other words, success is concerned with both the individual’s and organisation’s strategic stake in the process, and expatriation and repatriation are “inseparable components of an integrated process” (Yan, Zhu and Hall, 2002, p. 387).

GARAVAN 9781781954171 PRINT.indd 348

22/09/2017 16:32

IHRD and global careers  ­349 Their alignment model suggests that “it is the matched or mismatched expectations of the assignment contract that determine the success of the assignment” (Yan, Zhu and Hall, 2002, p. 387). The implications for IHRD in the successful management of expatriation and repatriation transitions are evident: engaging in ongoing dialogue about expectations for both employees and employers are critical prior-to, during, and post-assignment. These models are especially useful in addressing the challenge for employers to capitalise on the learning gained during an overseas assignment. Because careers operate as repositories of knowledge (Bird, 1996), knowledge transfer from overseas assignments, whether short or long, is of concern. As a significant proportion of individuals leave their organ­ isation soon after repatriation (Windham International, 1999), not only might the investment provided by the company be lost, but also know­ ledge gained may be transferred to a competitor (Lazarova and Caligiuri, 2001). As such, the challenge for employers is to support the expat through repatriation and also to ensure organisational learning or knowledge transfer from the experience. Furthermore, the advent of global careers, protean careers, and boundaryless careers opened a debate regarding who is responsible for the management of careers and career success. Traditional notions of careers meant that individuals relied primarily on their organisation to provide them with a job for life, and career success was closely linked with tenure in an organisation. With the frequent change associated with modern work, longevity in an organisation is no longer a likely reality. The concept of career management has moved to career self-management and in this context, global career success is likely to be played out across multiple organisations, and often multiple nations. Thus, a decision to engage in global work may go hand in hand with a decision to leave one’s current job. This may represent a subjective career response to an objective career reality, such as the length of time an individual is employed in the same job (Arnold and Cohen, 2008). Thus, individuals need to take responsibility for the self-management of their global careers in a proactive manner (Seibert, Crant and Kraimer, 1999). Protean career theorists and career coaches are sharing the message career guidance counsellors have been touting for decades: “Your career is too important to leave to someone else”, especially to employers whose responsibilities to employees are not permanent and may conflict with their responsibilities to shareholders. Recognising the importance of individual responsibility for one’s own career has important implications for individuals and managers whether they are operating globally or not. For example, both a boundaryless mindset and a protean career orientation are related to career success

GARAVAN 9781781954171 PRINT.indd 349

22/09/2017 16:32

350  Handbook of international human resource development and psychological well-being through their relationship on active coping (Briscoe et al., 2012). Further, a protean career orientation is related to internal and external career success through its effect on commitment and expectation (Grimland, Vigoda-Gadot and Baruch, 2012). For individual employees, it is vital that they are proactive in terms of career self-management. They must assess their skills, interests and goals, reflect on their current situation to see to what extent their current job fits with their career objectives and also plan for their short- and long-term career. Having knowledge about the world of work (for example, what opportunities exist) and how to maximise their chances of finding future employment that meets their skills, interests and goals (for example, through networking) is also important. Employees must consider this within their current organisation as well across organisational and international boundaries. The extent to which individuals pursue their own conceptualisation of career success in a self-directed and self-managed way may determine the level of job crafting they pursue. Job crafting, or the ways in which individuals seek to mould their job to fit their personal preferences and plans (Arnold, 2011; Wrzesniewski and Dutton, 2001) may play an important role in career success. Individuals with a long-term temporal orientation are likely to craft their job in ways that it can benefit their future career beyond their present job (Arnold, 2011; Fried et al., 2007). The implications of this for managers is that employees need sufficient autonomy to be able to do this. Furthermore, employees need to be supported in crafting their jobs if organisations aim to retain their high performers. This is not a traditional remit for managers and suggests ways in which a manager’s role has changed and evolved, which has implication for training and development of managers, as well as employees, in order to support a workforce with protean and boundaryless attitudes. Still, there is agreement that managers have a responsibility to help ensure the successful career management of its employees (Dickmann and Baruch, 2011; Hall and Moss, 1998). The new role is thought to be one of “supporter, enabler, developer of its human assets” (Dickmann and Baruch, 2011, p. 14), where the manager is thought to be a facilitator and partner (Carbery and Garavan, 2007). It is important the employees do not feel abandoned by their organisation as the responsibility is moved from employer to employee. Furthermore, although the expendable nature of a contingent workforce has left organisations free to downsize as needed, it has reduced the organisational commitment of the workforce. Thus, a common concern in the organisational career management literature is whether the provision of career management interventions for employees results in higher commitment to the organisation, or whether it just equips

GARAVAN 9781781954171 PRINT.indd 350

22/09/2017 16:32

IHRD and global careers  ­351 them to leave (Arnold and Cohen, 2008). Combining career management support with job crafting autonomy may be a way of combating turnover of high performers with strong protean and boundaryless career attitudes. Maintaining employees’ internal employability may enhance their retention and mean that they are less concerned with external employability (Thijssen, Van der Heijden and Rocco, 2008).

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE As illustrated in the cases at the start of the chapter, there is huge variation in what is included as a global career. Only recently have researchers begun to create taxonomy of global work experiences (Shaffer et al., 2012). Further research is needed to continue to develop consistency in how these experiences are classified. Following on, these categorisations need to be looked at systematically in order to understand the issues surrounding as well as the implications for individuals and organisations for various experiences. Further, in order to advance the field of global careers, it is imperative that researchers consider issues of context and time (Johns, 2001, 2006; Shapiro, Von Glinow and Xiao, 2007). Careers, whether global or local, occur over time, across both life and career stages, in different organisations and in different countries. To truly capture the complexity of the nature, occurrence and trajectories of global careers, it is imperative that researchers consider both the omnibus and discrete contexts in which they evolve, as well as their unfolding over time and life/career stages. To truly capture the complexity, both longitudinal and multilevel studies are needed. To this end, narrative approaches to lived experiences may also be useful, such as those used by Haynie and Shepherd (2011). Furthermore, the interplay between the sequences of work experiences and the goals that a person is seeking in other arenas of their life is a career phenomenon that has rarely been investigated (Arnold, 2011), but has important implications for the subjective experience of career success.

CONCLUSIONS To echo our previous comments, we believe an awareness of issues surrounding global careers is both powerful and necessary. We highlighted the importance for three major themes within the careers literature: transitional versus contemporary careers, definitions of career success,

GARAVAN 9781781954171 PRINT.indd 351

22/09/2017 16:32

352  Handbook of international human resource development and ­successful management of transitions, especially as associated with overseas work experiences and their relevance for IHRD. Throughout our discussion, we highlighted the importance of consideration of employee perspective, organisational perspective, and broader global context as being the primary concern for IHRD practitioners.

REFERENCES Abele, A.E. and Spurk, D. (2009a). How do objective and subjective career success interrelate over time? Journal of Occupational and Organizational Psychology, 82(4), 803‒824. Abele, A.E. and Spurk, D. (2009b). The longitudinal impact of self-efficacy and career goals  on objective and subjective career success. Journal of Vocational Behavior, 74(1), 53‒62. Adamson, S.J., Doherty, N. and Viney, C. (1998). The meanings of career revisited: Implications for theory and practice. British Journal of Management, 9(4), 251‒259. Adler, N.J. (2002). International Dimensions of Organizational Behavior (4th edition). Cincinnati, OH: South-Western College Publishing. Ahad, M., Osman-Gani, A. and Hyder, A.S. (2008). Repatriation readjustment of international managers: An empirical analysis of HRD interventions. Career Development International, 13(5), 456‒475. Alhejji, H., Garavan, T., Carbery, R., O’Brien, F. and McGuire, D. (2015). Diversity training programme outcomes: A systematic review. Human Resource Development Quarterly, 1‒55. Arnold, J. (2011). Career concepts in the 21st century. Psychologist, 24(2), 106‒109. Arnold, J. and Cohen, L. (2008). The psychology of careers in industrial and organizational settings: A critical but appreciative analysis. In G.P. Hodgkinson and J.K. Ford (eds), International Review of Industrial and Organizational Psychology (Vol. 23, pp. 1‒44). New York: John Wiley & Sons. Arthur, M.B. (1994a). The boundaryless career: A new perpsective for organizational inquiry. Journal of Organizational Behavior, 15(4), 295‒306. Arthur, M.B. (1994b). The boundaryless career: A new perspective for organizational inquiry. Journal of Organizational Behavior, 15(4), 295‒306. Arthur, M.B. and Rousseau, D.M. (1996). The Boundaryless Career. Oxford: Oxford University Press. Arthur, M.B., Hall, D.T. and Lawrence, B.S. (1989). Generating new directions in career theory: The case for a transdisciplinary approach. In M.B. Arthur, D.T. Hall and B.S. Lawrence (eds), Handbook of Career Theory (pp. 7‒25). Cambridge: Cambridge University Press. Barley, S.R. (1989). Careers, identities, and institutions: The legacy of the Chicago school of sociology. In D.T. Hall, B.S. Lawrence and M.B. Arthur (eds), The Handbook of Career Theory (pp. 41‒60). Cambridge: Cambridge University Press. Baruch, Y. (2006). Career development in organizations and beyond: Balancing traditional and contemporary viewpoints. Human Resource Management Review, 16, 125‒138. Baruch, Y. and Reis, C. (2016). How global are boundaryless careers and how boundaryless are global careers? Challenges and a theoretical perspective.  Thunderbird International Business Review, 58(1), 13‒27. Bhatti, M.A., Battour, M. and Ismail, A.R. (2013). Expatriates adjustment and job performance: An examination of individual and organizational factors. International Journal of Productivity and Performance Management, 62(7), 694‒717. Bird, A. (1996). Careers as repositories of knowledge: Considerations for boundaryless careers. In M.B. Arthur and D.M. Rousseau (eds), The Boundaryless Career (pp. 150‒169). Oxford: Oxford University Press.

GARAVAN 9781781954171 PRINT.indd 352

22/09/2017 16:32

IHRD and global careers  ­353 Boudreau, J.W. and Boswell, W.R. (2001). Effects of personality on executive career success in the United States and Europe. Journal of Vocational Behavior, 58(1), 53‒81. Briscoe, J.P., Henagan, S.C., Burton, J.P. and Murphy, W.M. (2012). Coping with an insecure employment environment: The differing roles of protean and boundaryless career orientations. Journal of Vocational Behavior, 80, 308‒316. Brookfield Global Relocation Services. (2009). Global Relocation Trends 2009 Survey Report. Caligiuri, P.M., Phillips, J., Lazarova, M., Tarique, I. and Burgi, P. (2001). The theory of met expectations applied to expatriate adjustment: the role of cross-cultural training. International Journal of Human Resource Management, 12(3), 357‒372. Cappellen, T. and Janssens, M. (2010). Enacting global careers: Organizational career scripts and the global economy as co-existing career referents. Journal of Organizational Behavior, 31(5), 687‒706. Carbery, R. and Garavan, T.N. (2007). Conceptualizing the participation of managers in career-focused learning and development: A framework. Human Resource Development Review, 6(4), 394‒418. Cerdin, J.L. and Brewster, C. (2014). Talent management and expatriation: Bridging two streams of research and practice. Journal of World Business, 49(2), 245‒252. Chudzikowski, K. (2012). Career transitions and career success in the ‘new’ career era. Journal of Vocational Behavior, 81(2), 298‒306. Clarke, M. (2013). The organizational career: Not dead but in need of redefinition. The International Journal of Human Resource Management, 24(4), 684‒703. Csoka, L. and Hackett, B. (1998). Transforming the HR function for global business success (Report). New York: The Conference Board. De Vos, A., De Clippeleer, I. and Dewilde, T. (2009). Proactive career behaviours and career success during the early career. Journal of Occupational and Organizational Psychology, 82(4), 761‒777. Dickmann, M. and Baruch, Y. (2011). Global Careers. Abingdon: Taylor & Francis. Dickman, M. and Harris, H. (2005). Developing career capital for global careers: The role of international assignments. Journal of World Business, 40(4), 399‒420. Doeringer, P.B. and Poire, M.J. (1971). Internal Labor Markets and Manpower Analysis. London: Sharpe. Doogan, K. (2001). Insecurity and long-term employment. Work, Employment and Society, 15(3), 419‒441. Doogan, K. (2009). New capitalism? The Transformation of Work. Cambridge: Polity. Doogan, K. (2011). Austerity, labour market change and the transformation of work. International Journal of Management Concepts and Philosophy, 5(2), 127‒137. Dries, N. (2011). The meaning of career success Avoiding reification through a closer inspection of historical, cultural, and ideological contexts. Career Development International, 16(4‒5), 364‒384. Dries, N., Pepermans, R. and Carlier, O. (2008). Career success: Constructing a multidimensional model. Journal of Vocational Behavior, 73(2), 254‒267. Dries, N., Van Acker, F. and Verbruggen, M. (2012). How ‘boundaryless’ are the careers of high potentials, key experts and average performers? Journal of Vocational Behavior, 81(2), 271‒279. Fried, Y., Grant, A.M., Levi, A.S., Hadani, M. and Slowik, L.H. (2007). Job design in temporal context: A career dynamics perspective. Journal of Organizational Behavior, 28(7), 911‒927. Future Workplace. (2012). Multiple Generations @ Work: Findings From a Global Survey of Employees and Managers. http://futureworkplace.com/the-2020-workplace/ (accessed 12 May 2017). Gratton, L. and Pearson, J. (1994). Empowering leaders: Are they being developed? In C. Mabey and P. Iles (eds), Managing Learning (pp. 87‒104). London: Routledge. Gregersen, H.B., Morrison, A.J. and Black, J.S. (1998). Developing leaders for the global frontier. Sloan Management Review, 40(1), 21‒31.

GARAVAN 9781781954171 PRINT.indd 353

22/09/2017 16:32

354  Handbook of international human resource development Grimland, S., Vigoda-Gadot, E. and Baruch, Y. (2012). Career attitudes and success of managers: The impact of chance event, protean, and traditional careers. The International Journal of Human Resource Management, 23(6), 1074‒1094. Gubler, M., Arnold, J. and Coombs, C. (2014). Reassessing the protean career concept: Empirical findings, conceptual components, and measurement. Journal of Organizational Behavior, 35, 23‒40. Guest, D. and Davey, K.M. (1996). Don’t write off the traditional career. People Management, 2(4), 25‒44. Gunz, H. and Peiperl, M. (2007). Introduction. In H.P. Gunz and M. Peiperl (eds), Handbook of Career Studies (pp. 1‒10). Thousand Oaks, CA: Sage Publications. Hall, D.T. (1996a). Long live the career. In D.T. Hall (ed.), The Career is Dead – Long Live the Career (pp. 1‒12). San Francisco, CA: Jossey-Bass. Hall, D.T. (1996b). Protean careers of the 21st century. Academy of Management Executive, 10(4), 8–16. Hall, D.T. and Las Heras, M. (2009). Long live the organisational carrer. In A. Collin and W. Patton (eds), Vocational Psychology and Organisational Perspectives on Career: Toward a Multidisciplinary Diaglogue (pp. 181–196). Rotterdam: Sense. Hall, D.T. and Moss, J.E. (1998). The new protean career contract: Helping organisations and employees adapt. Organisational Dynamics, 26, 23–37. Harvey, M., Fisher, R., McPhail, R. and Moeller, M. (2013). Aligning global organizations’ human capital needs and global supply-chain strategies. Asia Pacific Journal of Human Resources, 51(1), 4–21. Haynie, J.M. and Shepherd, D. (2011). Toward a theory of discontinuous career transition: Investigating career transitions necessitated by traumatic life events. Journal of Applied Psychology, 96(3), 501–524. Heslin, P.A. (2005). Conceptualizing and evaluating career success. Journal of Organizational Behavior, 26(2), 113–136. Hollenbeck, G.P. and McCall, M.W. (2003). ‘Not in my wildest imagination’: The global effect. Paper presented at the Annual Meeting of the Society of Industrial/Organizational Psychology, Orlando, FL. Hughes, E.C. (1937). Institutional office and the person. The American Journal of Sociology, 43(3), 404–413. Hutchings, K., Lirio, P. and Metcalfe, B.D. (2012). Gender, globalisation and development: a re-evaluation of the nature of women’s global work. International Journal of Human Resource Management, 23(9), 1763–1787. Ibarra, H. (1999). Provisional selves: Experimenting with image and identity in professional adaptation. Administrative Science Quarterly, 44(4), 764–791. Inkson, K., Gunz, H., Ganesh, S. and Roper, J. (2012). Boundaryless careers: Bringing back boundaries. Organization Studies, 33(3), 323–340. Javidan, M. and Bowen, D. (2013). The ‘global mindset’of managers: What it is, why it matters, and how to develop it. Organizational Dynamics, 42(2), 145–155. Johns, G. (2001). In praise of context: Commentary. Journal of Organizational Behavior, 22(1), 31–42. Johns, G. (2006). The essential impact of context on organizational behavior. Academy of Management Review, 31(2), 386–408. Jokisaari, M. (2003). Regret appraisals, age, and subjective well-being. Journal of Research in Personality, 37(6), 487–503. Joo, B.-K., Park, S. and Oh, J.R. (2013). The effects of learning goal orientation, developmental needs awareness and self-directed learning on career satisfaction in the Korean public sector. Human Resource Development International, 16(3), 313–329. King, Z. (2003). New or traditional careers? A study of UK graduates’ preferences. Human Resource Management Journal, 13(1), 5–26. Lau, V.P., Shaffer, M.A. and Au, K. (2007). Entrepreneurial career success from a Chinese perspective: Conceptualization, operationalization, and validation. Journal of International Business Studies, 38(1), 126–146.

GARAVAN 9781781954171 PRINT.indd 354

22/09/2017 16:32

IHRD and global careers  ­355 Lazarova, M.B. and Caligiuri, P. (2001). Retaining repatriates: The role of organization support practices. Journal of World Business, 36(4), 389–401. Liu, Y., Englar-Carlson, M. and Minichiello, V. (2012). Midlife career transitions of men who are scientists and engineers: A narrative study. The Career Development Quarterly, 60(3), 273‒288. Mäkelä, L., Känsälä, M. and Suutari, V. (2011). The roles of expatriates’ spouses among dual career couples. Cross Cultural Management: An International Journal, 18(2), 185‒197. Mayrhofer, W., Meyer, M., Iellatchitch, A. and Schiffinger, M. (2004). Careers and human resource management: A European perspective. Human Resource Management Review, 14, 473–498. McCarthy, A. and Pearson, J. (2002). 360o feedback in the global HRM arena and expatriate management process. In M. Linehan, M.J. Morley and J.S. Walsh (eds), International Human Resource Management and Expatriate Transfers: Irish Experiences (pp. 69‒100). Dublin: Blackhall Publishing. McDonald, K.S. and Hite, L.M. (2008). The next generation of career success: Implications for HRD. Advances in Developing Human Resources, 10(1), 86‒103. Mendenhall, M.E. (2001). New perspectives on expatriate adjustment and its relationship to global leadership development. In M.E. Mendenhall, T.M. Kuhlmann and G.K. Stahl (eds), Developing Global Business Leaders (pp. 1‒16). Westport: Quorom. Morrison, R.F. (1977). Career adaptivity: The effective adaptation of managers to changing role demands. Journal of Applied Psychology, 62(5), 549‒558. Nery-Kjerfve, T. and McLean, G.N. (2012). Repatriation of expatriate employees, know­ ledge transfer, and organizational learning: What do we know?.  European Journal of Training and Development, 36(6), 614‒629. Niles, S.G. and Harris-Bowlsbey, J. (2002). Career Development Interventions in the 21st Century. Columbus, OH: Merrill Prentice Hall. O’Shea, D. and Kirrane, M. (2008). The transmission of work related attitudes: A social learning analysis. Journal of Managerial Psychology, 23(5), 424‒457. O’Shea, D., Monaghan, S. and Ritchie, T. (2014). Early career attitudes and satisfaction during recession. Journal of Managerial Psychology, 29(3), 226‒245. Pearson, J., Hammond, M., Heffernan, E. and Turner, T. (2011). Careers and talents not to be wasted: Skilled immigrants’ journeys through psychological states en route to satisfying employment. Journal of Management Development, 31, 102‒115. Peiperl, M.A. and Baruch, Y. (1997). Back to square zero: The post-corporate career. Organisational Dynamics, 25(4), 6‒22. Pfeffer, J. and Baron, J.N. (1988). Taking the workers back out: Recent trends in the structuring of employment. In B. Staw and L. Cummings (eds), Research in Organizational Behavior (Vol. 10, pp. 257‒303). Greenwich, CT: JAI Press. Pulakos, E.D., Arad, S., Donovan, M.A. and Plamondon, K.E. (2000). Adaptability in the workplace: Development of a taxonomy of adaptive performance. Journal of Applied Psychology, 85(4), 612‒624. Rodrigues, R.A. and Guest, D. (2010). Have careers become boundaryless? Human Relations, 63(8), 1157‒1175. Rousseau, D.M. (1989). Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2, 121‒139. Rousseau, D.M. (1995). Psychological Contracts in Organizations. Thousand Oaks, CA: Sage Publications. Schlossberg, N.K. (1984). Counseling Adults in Transition: Linking Practice with Theory. New York: Springer. Schneer, J.A. and Reitman, F. (2002). Managerial life without a wife: Family structure and managerial success. Journal of Business Ethics, 37(1), 25‒38. Schuler, R.S., Jackson, S.E. and Tarique, I. (2011). Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of World Business, 46(4), 506‒516.

GARAVAN 9781781954171 PRINT.indd 355

22/09/2017 16:32

356  Handbook of international human resource development Seibert, S.E., Crant, J.M. and Kraimer, M.L. (1999). Proactive personality and career success. Journal of Applied Psychology, 84(3), 416‒427. Shaffer, M.A., Kraimer, M.L., Chen, Y.P. and Bolino, M.C. (2012). Choices, challenges, and career consequences of global work experiences: A review and future agenda. Journal of Management, 38(4), 1282‒1327. Shapiro, D.L., Von Glinow, M.A. and Xiao, Z. (2007). Toward polycontextually sensitive research methods. Management and Organization Review, 3(1), 129‒152. Shokef, E. and Erez, M. (2008). Cultural intelligence and global identity in multicultural teams. In A. Soon and L. Van Dyne (eds), Handbook of Cultural Intelligence: Theory, Measurement and Applications (pp. 177‒191). Armonk, ME: Sharpe. Stahl, G.K. and Cerdin, J.L. (2004). Global careers in French and German multinational corporations. Journal of Management Development, 23(9), 885‒902. Stahl, G.K., Miller, E.L. and Tung, R.L. (2002). Toward the boundaryless career: a closer look at the expatriate career concept and the perceived implications of an international assignment. Journal of World Business, 37(3), 216‒227. Sturges, J. and Guest, D. (2001). Don’t leave me this way! A qualitative study of influences on the organisational commitment and turnover intentions of graduates early in their career. British Journal of Guidance and Counselling, 29(4), 447‒462. Sturges, J., Conway, N. and Liefooghe, A. (2008). What’s the deal? An exploration of career management behaviour in Iceland. The International Journal of Human Resource Management, 19(4), 752‒768. Sullivan, S.E. and Arthur, M.B. (2006). The evolution of the boundaryless career concept: Examining physical and psychological mobility. Journal of Vocational Behavior, 69(1), 19‒29. Sullivan, S.E. and Baruch, Y. (2009). Advances in career theory and research: A critical review and agenda for future exploration. Journal of Management, 35(6), 1542‒1571. Sullivan, S.E., Carden, W.A. and Martin, D.F. (1998). Careers in the next millennium: Directions for future research. Human Resource Management Review, 8(2), 165‒185. Takeuchi, R. and Chen, J. (2013). The impact of international experiences for expatriates’ cross-cultural adjustment: A theoretical review and a critique. Organizational Psychology Review, 3(3), 248‒290. Tams, S. and Arthur, M.B. (2007). Studying careers across cultures: Distinguishing international, cross-cultural, and globalization perspectives. Career Development International, 12(1), 86‒98. Thijssen, J.G.L., Van der Heijden, B.IJ.M. and Rocco, T.S. (2008). Toward the employability–link model: Current employment transition to future employment perspectives. Human Resource Development Review, 7(2), 165‒183. Thomas, D.C., Lazarova, M.B. and Inkson, K. (2005). Global careers: New phenomenon or new perspectives? Journal of World Business, 40(4), 340‒347. Wajcman, J. and Martin, B. (2001). My company or my career: Managerial achievement and loyalty. British Journal Of Sociology, 152(4), 559‒578. Windham International. (1999). Global relocation trends: 1999 survey report. New York: Windham International. Wrzesniewski, A. and Dutton, J.E. (2001). Crafting a job: Revisioning employees as active grafters of their work. Academy of Management Review, 26(2), 179‒201. Yan, A.M., Zhu, G.R. and Hall, D.T. (2002). International assignments for career building: A model of agency relationships and psychological contracts. Academy of Management Review, 27(3), 373‒391.

GARAVAN 9781781954171 PRINT.indd 356

22/09/2017 16:32

17. IHRD and leader development Nicholas Clarke

INTRODUCTION The multitude of definitions and increasing theoretical perspectives on leadership make it one of the most contested areas within the social sciences (Yukl, 2006). Although it is beyond the scope of this chapter to review the range of perspectives and theories on leadership, the argument that notions of leadership and, indeed, leadership effectiveness might be contested, becomes an important consideration in a chapter that seeks to examine the intersection of leadership and international human resource development (IHRD). It prompts key questions that can help to delineate the terrain that such a chapter as this might cover. First and perhaps selfevident, is to what extent are aspects of leadership culturally distinctive? If there are differences in how effective leadership is perceived in different cultures, what implications does this have for theory and practice in leader development? Second, to what extent is or could leadership development practices be subject to cultural differences? Could for example, cultural values or national differences in HR practices potentially influence either the choice or effectiveness of those methods traditionally used in the West to develop leaders from differing cultural backgrounds? The aim of this chapter is to explore these questions based on what we know to date from the literature. The focus of this chapter is on international leader development rather than leadership development, since this has been the dominant model that has appeared in the literature to date. The difference between these two terms is more than a question of semantics. Although often used interchangeably in the past, they have now come to mean two different things. Leader development refers to a range of processes associated with developing the skills, knowledge, and aptitudes of an individual either occupying or moving into a formal leader role. McCauley and Van Velsor (2004, p. 2) define it as “the expansion of a person’s capacity to be effective in leadership roles and processes”. As such, leader development targets intra-individual capacities such as self-awareness, self-regulation and selfmotivation (Day, 2000). It is also concerned with providing both formal and informal learning experiences that support the development of leader identity (Day, Harrison and Halpin 2009; Day and Sin, 2011). Leader 357

GARAVAN 9781781954171 PRINT.indd 357

22/09/2017 16:32

358  Handbook of international human resource development development is therefore best perceived as a journey of personal transformation. This contrasts with the more recent notion of leadership development. The focus here is perceiving leadership as not the property of an individual, but more as a relational process that involves both leaders and followers (Uhl-Bien 2006). Leadership is characterised as a property of the relational space that exists between leaders and followers and it is this relationship quality through which leadership exerts its effects (Uhl-Bien and Ospina, 2012). One aspect of leadership development is therefore how trust and respect can be developed in these leadership relationships (Burke et al., 2007; Clarke, 2011; Lapidot, Kark and Shamir 2007). A second aspect is that leadership is seen more as an emergent property within a social system. So rather than just a focus on formal leader roles, leadership is a fluid concept where individuals move in and out of leadership roles depending upon the situation and the needs at the time. Here then, leadership is a more collective social concept (Clarke, 2010; Hillier, Day and Vance, 2006; O’Toole, Galbraith and Lawler, 2002; Yukl, 2002). The focus of leadership development is therefore concerned with developing the social system so that leadership roles can emerge. McCauley, Moxley and Van Velsor (1998) for example, define leadership developed from this perspective as expanding the collective capacity of organisational members to engage effectively in leadership roles and processes. Instead of human capital, the focus in leadership development shifts towards the development of social capital (Clarke, 2012). The literature relating to leadership and IHRD has predominantly adopted a leader-centric focus and therefore falls within the area of leader development rather than leadership development. We return to this point towards the end of the chapter. The chapter is organised as follows. First, the literature identifying cross-cultural differences for particular types of leadership styles and behaviours is discussed to highlight the importance of cultural congruence theory. This emphasises that behaviours are more acceptable to the extent that they fit with the cultural values that pertain to a particular country. Next, the literature on international leader development is critically reviewed drawing upon McCauley, Van Velsor and Ruderman’s (2010) three dimensional model of leader development. Cross-cultural congruence theory is then applied to highlight problems and challenges with applying Western notions of international leader development to other cultures. We then turn to the limitations associated with current practices in global leader development, again through the lens of cultural congruence theory. The chapter concludes with highlighting key areas for future research in international leader development and considering the advantages of moving more towards an international leadership development perspective than has been the case to date.

GARAVAN 9781781954171 PRINT.indd 358

22/09/2017 16:32

IHRD and leader development  ­359

CROSS CULTURAL DIFFERENCES IN LEADERSHIP Following Hofstede’s seminal work on cultural differences in work related values (1980, 2001), a significant body of research has accumulated exploring the extent to which aspects of leadership are universal or culturally specific (Dickson, Den Hartog and Mitchelson, 2003; House et al., 2003; Jung and Avolio, 1999). The argument that leadership may have cultural specificities, draws upon two theoretical premises in particular. The first, cultural congruence theory, posits that particular leader behaviours are likely to be perceived as more acceptable in particular countries, to the extent that they are consistent with cultural values (House, Wright and Adita, 1997). The second, implicit leadership theory, suggests that individuals perceive leadership in terms of prototypes which are culturally determined (Lord, Foti and De Vader, 1984). Again, leadership behaviours are more likely to be appropriate to the extent they are deemed congruent with an individual’s own cultural values and self-concept (Pekerti, 2005). A good example of this is research showing that Chinese managers usually exhibit a conflict avoidance management style, whilst US managers by contrast adopt a more competitive style when managing conflict. Both cases support the idea that the acceptable leader behaviours are congruent with the dominant wider cultural values. Collectivism in China, with its emphasis on the group and maintaining harmony whilst the need for achievement tends to be a US value (Morris et al., 1998). Dorfman et al. (1997) compared the preference for leadership styles in Western and Asian countries. Although supportive, contingent reward and charismatic styles were universally shared across cultures they found directive, participative and contingent punishment leadership styles were far more culturally contingent. Whereas contingent punishment had positive effects in the US, it was not found to be the case in other countries. Triandis (1995) suggested that this can partially be explained by fundamental differences between individualistic and collectivist cultures. For example, in collectivist cultures where considerable emphasis is placed on maintaining the harmony of the group, then paternalistic and supportive leadership behaviours are more desirable (Dickson, Den Hartog and Mitchelson, 2003). In one of the largest multinational studies ever undertaken involving 62 countries and over 18,000 managers, the GLOBE project explored the extent to which nine dimensions of leadership were shared across cultures. These nine dimensions were performance ­orientation, assertiveness orientation, future orientation, humane orientation, institutional collectivism, family (in group) collectivism, gender egalitarianism, power distance and uncertainty avoidance. Although many attributes were indeed found to be universal (for example, charismatic/future orientation), there were

GARAVAN 9781781954171 PRINT.indd 359

22/09/2017 16:32

360  Handbook of international human resource development some major differences. Values such as power distance and uncertainty avoidance for example, predicted the preference for participative leadership. Power distance is defined as the extent to which power in society and its institutions is unequally shared (Hofstede 1980). In societies with relatively high power distance, individuals have less need for their leaders to involve them in decision-making, they tend to expect more guidance and find an autocratic style of leadership more acceptable. Similarly, uncertainty avoidance was found also to explain certain aspects of leadership behaviour deemed more preferable in a number of cultures. This was associated with the extent to which leaders were formal, procedural, risk adverse and/or cautious. Leaders from high uncertainty avoidance countries again tended to be far more controlling and less concerned with involving followers in decision-making or delegating.

LEADER DEVELOPMENT CULTURAL CONSIDERATIONS Most of the writing on leader development (LD) assumes a universalist perspective, that suggests LD practices can simply be transposed between differing contexts (organisational, business, social and cultural) without much difficulty. Indeed, the literature on leadership development generally has had little to say on whether contextual influences play any role at all on determining the adoption, implementation or effectiveness of particular LD practices. Of course, formal education programmes such as MBA programmes located in universities are one route by which leaders are exposed to leadership development and through which Western dominant ideologies in leadership and management have been promoted (Mellahi, 2000). On this basis, one might think that this suggests little scope for cultural variation in leadership development. However, research has found national differences in the approaches taken to develop managers (Mabey and Ramirez, 2012). While other writers have highlighted how educational theories and practices are shaped by dominant cultural values which influence learning preferences (Elliott and Grigorenko, 2007). Together, this suggests a closer examination of this topic is required. In order to explore whether leader development might be subject to cultural contingencies we need to first understand what might be meant be the term leader development. Over recent years, huge strides have been made to understand better the processes by which leaders develop, where formal education programmes are recognised as playing a relatively minor role. One of the more useful models has been developed by McCauley, Van Velsor and

GARAVAN 9781781954171 PRINT.indd 360

22/09/2017 16:32

IHRD and leader development  ­361 Ruderman (2010). This model captures more comprehensively the range of factors that influence how leaders develop in organisations. They highlight Assessment, Challenge and Support as the three essential elements that together enhance leader development experiences in the following ways. (1) Assessment: Leaders first need to know their current strengths and performance capabilities in order to gain some insight into what their development needs are. (2) Challenge: Next, they need to engage in challenging experiences that offer unique learning opportunities through which they can develop new skills. (3) The third key element, involves gaining support from many different sources, coaches, mentors, their managers, peers, family, and friends to help them through the process of learning and change. Alongside these three key elements, leaders need to engage in a variety of developmental activities where the leader’s ability and readiness to learn will also affect their development. One of the most notable aspects of this model, is the emphasis these authors place on the importance of context as influencing developmental outcomes. Here they cite aspects such as age, gender, business strategy and culture as having significant effects. This development framework can also help us to identify specific methods or mechanisms that could be used as part of a leader development programme. Although formal education and training programmes continue to be an important part of leader development, organisations have turned towards more informal or on-the-job methods. Among those that are increasingly used by organisations include (1) 360 degree feedback, (2) developmental job challenge and (3) self-directed learning. Such is the popularity of these methods that they have become part of the staple components of many leader development programmes that are reported in the literature (Day, 2000). Yet we need to bear in mind that most of the literature describing the use and effectiveness of such methods originates predominantly from the US and the UK. A key question arises, which is to what extent should such methods be as effective if used within differing cultural settings to these? Our understanding of how IHRD processes differ across cultures is limited. Empirical studies examining IHRD processes such as leader development are virtually non-existent in the literature. However, research from comparative differences between nations and cultures on HRM particularly at the level of work processes (Odenwald, 1993) suggests these traditional leader development methods may not transpose as well in other cultures.

GARAVAN 9781781954171 PRINT.indd 361

22/09/2017 16:32

362  Handbook of international human resource development 360 Degree Feedback In terms of helping leaders develop their self-awareness, 360 degree feedback allows leaders to obtain insights on their performance, leadership style and interpersonal skills from a range of differing sources (McCarthy and Garavan, 2001). The effectiveness of the method increases when the leader is (a) open to the feedback they receive and (b) there is greater concordance between the differing sources on the information obtained (King and Santana, 2010). There are a number of ways in which cultural differences potentially influence the effectiveness of 360 degree feedback. This includes the extent to which feedback is sought (particularly from direct reports) as well as in the nature and perception of communication that is provided (Aycan and Kanungo, 2001). An important cultural consideration here is the degree of power distance found in different cultures. This places parameters on how individuals interact. In low power distance countries there is less attention attributed to status or authority by virtue of position, and greater expectation to be involved in decisionmaking or invited to offer views and opinions (Sagiv and Schwartz, 2000). In contrast, high power distance cultures place far greater emphasis on attributing status and respect by virtue of position in the hierarchy, and individuals are far less likely to disagree with their managers (Adsit et al., 1997). Consequently, employees in high power distance cultures are far more reluctant to offer feedback to individuals in leader positions. Whilst leaders have also been found to request feedback or information far less from those reporting to them (Millman, Taylor and Czaplewski, 2002), these leaders may also find it difficult to accept any feedback from their direct reports particularly if it contrasts significantly with their own selfperception (Fletcher and Perry, 2001). Problems may also be encountered in collectivist cultures. Collectivist values place an emphasis on maintaining group harmony and avoiding conflict. Offering feedback that might be perceived as criticism is therefore less likely due to the impact this may have on an individual’s concern with face saving behaviour. Developmental Job Challenge Developing leader skills on the job requires the job to be characterised as developmental. By this is meant it offers opportunities for an individual to develop their skills and competences through undertaking the tasks and responsibilities associated with the role (Ohlott, 2004). An important aspect here is the challenge or ‘stretch’ that the job provides, so the leader can gain insights into their current skills as well as recognise where development is needed. Developmental aspects found to be particularly

GARAVAN 9781781954171 PRINT.indd 362

22/09/2017 16:32

IHRD and leader development  ­363 important include high level responsibility, managing change, undertaking unfamiliar tasks, managing diversity and working across boundaries (DeRue and Wellman, 2009). The use of such an approach for developing leaders may similarly be culturally contingent. Hofstede’s dimension of uncertainty avoidance captures key differences between cultures in the extent to which individuals tolerate ambiguity, are risk averse and the degree of structure and formal­ isation associated with work processes, task allocation and rigidly defined responsibilities. In countries characterised as high in uncertainty avoidance such as the UK and US where this developmental process is common, there is far greater flexibility found within jobs, increased job mobility and an emphasis on developing more generalised and transferable skills. All of these features contribute to the effectiveness of developmental job challenge as a mechanism for developing leader skills. In cultures with low uncertainty avoidance, there is a far greater emphasis on the formalisation of job roles, more clearly defined scope of responsibilities and a more rigid career structure (Dickson, Den Hartog and Mitchelson, 2003). For example, in a study comparing career management activities between German and British managers, German managers were found to place greater value on specialisation and occupied a specific job for a greater length of time (Stewart et al., 1994). Similarly a study comparing Irish and German managers found far greater emphasis on planning to meet customer needs on time rather than flexibility (Rauch, Frese and Sonnentag, 2000). These findings can be explained given that Germany is a country rated high in uncertainty avoidance whereas both the UK and Ireland are by contrast seen as low. Hofstede’s dimension of power distance might also have some influence given that in high power distance countries, managers appear to rely far more on rules, regulation and top down guidance when carrying out everyday responsibilities and tasks associated with their jobs (Smith et al., 2002). Differences observed between individualist and collectivist societies could also be significant. In particular, autonomy and job challenge have been found to be characteristics far more common in individualist rather than collectivist cultures (Triandis, 1995). We might consider then, that the way jobs are designed and cultural preferences for how they are carried out, may well impact on the effectiveness of developmental job challenge as a mechanism for leader development in some cultures. Self-directed Learning Self-directed learning has been identified as a key HRD process where individuals take responsibility for undertaking learning themselves (Ellinger,

GARAVAN 9781781954171 PRINT.indd 363

22/09/2017 16:32

364  Handbook of international human resource development 2004). Its relevance for leader development has also been highlighted in the literature (Brown and Posner, 2001). Although its use is widespread in both formal education and HRD in organisations, there has been very little analysis of the extent to which this approach to personal development may be influenced by cultural differences. Despite the diffusion of this educational method across the globe, some question whether the values of democracy, individualism and egalitarianism that are said to underpin it, transfer easily within differing cultural settings (Nah, 2000). Although empirical studies are rare, a recent study by Frambach et al. (2012) highlighted some important differences between Dutch, Middle Eastern and Hong Kong medical students in their preference for this learning mechanism. Middle Eastern students (typically characterised as high in uncertainty avoidance) found the lack of external direction difficult to cope with and represented a challenge to their ‘traditional’ values and norms regarding education and learning. These students required significant guidance in order to identify their learning objectives and to trust in the process. Students from Hong Kong by contrast, had great difficulty in trusting their skills to secure and interpret appropriate knowledge that might be deemed to represent the ‘truth’ or the one authoritative and objective reality. Goh (2009) has suggested that there are significant cultural differences between individualist and collectivist societies in those factors likely to motivate employees that are relevant here. The values underpinning learning in individualist cultures include freedom of expression of views and opinions and independent thinking. Involvement in setting goals is seen to be the norm. In collectivist cultures the values are different and instead include the restricted expression of views and opinions and the requirement to think and act in relation to significant others. This emphasises learning through a hierarchical set of frameworks including ruler/subject, parent/child, husband/wife and leader/follower (Kirkbride, Tang and Westwood, 1991). In this instance, goals are expected to be assigned rather than set oneself. Other researchers too, note that specifically in relation to Chinese managers, learning is viewed in far more passive terms to the extent that even group-based discursive activities may not be well liked or received (Branine, 2005). Self-directed learning places at its centre expectations that learners wish both autonomy to set their own goals as well the independence to pursue them (Nah, 2000). On this basis, one would expect self-directed learning to fit the learning styles and values of individualist far more than collectivist cultures.

GARAVAN 9781781954171 PRINT.indd 364

22/09/2017 16:32

IHRD and leader development  ­365

GLOBAL LEADER DEVELOPMENT We now turn to consider the area of global leader development and examine some of this literature in light of some of the propositions just highlighted regarding cross-cultural differences in leader development practices. Given that cultural differences have been found to exist in these implicit leadership theories, enabling leaders to understand differences in these schemata and adopting more culturally appropriate leader behaviours has been a central focus of global leadership development. The activities typically associated with global leader development can broadly speaking, be classified into two strands. The first focuses on developing competences thought to underpin the performance of successful global leaders. The second identifies IHRD practices that offer learning opportunities through which such competences might then develop. Global Leader Competences Developing sets of global competencies has dominated much of the literature to the extent there now exist a cacophony of standards and competences potentially expected from global leaders, and upon which there is no shared consensus (Suutari, 2002). Mendenhall and Bird (2013) reported having identified over 100 separate competences associated with global leadership which they found could be organised into six core dimensions. They described these as (1) relationship building in cross cultural contexts, (2) personality traits or behavioural tendencies, (3) global business knowledge (4) cross cultural administrative expertise, (5) cognitive abilities relating to world view and information processing, and (6) the ability to articulate and gain support for the organisation’s vision. The vast majority of global competency frameworks that have appeared in the literature have limited if any empirical validation however. Nevertheless, the general approach adopted by international firms is to develop global leader competences and then tailor a global leader talent management programme to support them (Browne, 2006). Global Leader Development Practices A significant array of GLD practices are now reported in the literature. These include undertaking international assignments (Dickmann and Doherty, 2010); formal education and training programmes (American Management Association, 2010; Gregersen, Morrison and Black, 1998); in country training (Mendenhall and Stahl, 2000); engaging in global travel to learn from colleagues (Oddou, Mendenhall and Ritchie, 2000)

GARAVAN 9781781954171 PRINT.indd 365

22/09/2017 16:32

366  Handbook of international human resource development and ­participating in global teams (Maznevski and DiStefano, 2000). These draw upon a number of theoretical bases that range from more general theories such as social learning theory (Bandura, 1977) and the contact hypothesis (Allport, 1954) to more specific theories and models such as Bennett’s (1993) developmental model of intercultural sensitivity. These all share the common theme that interaction with people from different cultures is critical if learning is to occur. Empirical studies examining the impact of global leadership development programmes are rare however, and of those that have appeared in the literature the results have been variable (Suutari, 2002). Much of the research both in the area of global talent management and development has tended to be based on anecdotal accounts or case studies (McDonnell et al., 2010). Only half of the 939 organisations in a recent survey by the American Management Association suggested that their global leadership development activity was highly effective in developing the necessary leadership skills (AMA, 2010).

GLOBAL LEADER DEVELOPMENT: CURRENT LIMITATIONS, CHALLENGES AND THE ETHNOCENTRIC PARADOX Given the relatively poor data that exists regarding the impact of global leader development how might this be explained and what are the potential ways forward in order to advance both theory and practice in this important area of IHRD? There are four areas where we need to focus attention: (1) The gap between evidence and practice, (2) Research to advance theory, (3) The ethnocentric paradox in GLD and (4) Moving beyond competences. The Gap Between Evidence and Practice Although evidence for the impact of global leadership development has been disappointing, the use of international assignments as a GLD practice does appear to be the most effective. International assignments have been suggested as the most powerful way to develop global leaders (Evans, Pucik and Barsoux, 2002; Caliguri and Tarique, 2012). Yet although evidence of impact here seems the most promising, organisations seem to prefer to use other development mechanisms. McDonnell et al. (2010) for example found that sending people on international assignments was the least extensively IHRD practice used by the MNEs they surveyed. Instead this study found that sending people on qualification programmes was the

GARAVAN 9781781954171 PRINT.indd 366

22/09/2017 16:32

IHRD and leader development  ­367 most extensively used development practice, with nearly nine in ten MNEs in their survey using this practice. Clearly, cost pressures always play a part in determining how IHRD is designed and delivered. However, at least in the short term, the costs associated with international assignments that demonstrate some efficacy need to be balanced against the costs associated with choosing to use development practices of which the evidence for their effectiveness is much poorer at best. Research to Advance Theory Given that international assignments show the most promise as an effective means for developing global leaders, we need to know far more about the theoretical mechanisms that underpin this. International service experiences are suggested as important methods for changing the cognitive mindsets of global leaders (Cherry, Lee and Chien, 2003). However, our understanding of the factors associated with their effectiveness is limited. The question we need to ask is: What is it about these experiences that determines their impact? Kayes, Kayes and Yamazaki (2005) argue that learning occurs through a range of knowledge absorption abilities including valuing cultural differences, dealing with ambiguity, relationshipbuilding and problem solving. Others suggest that these experiences cause cognitive dissonance that ultimately results in growth and development (Wilson, 2008). Although these are all potential explanations, the learning processes involved very much remain a black box. Most models assume that as one’s experience of intercultural challenges both increase and become more complex, then the appropriate intercultural competences will develop. Yet similar to problems encountered more generally in both management and leadership training and development, whereas GLD programmes can and do result in increasing knowledge and skills, their actual impact on the performance of global leaders is often far more difficult to determine (Mendenhall et al., 2004; Mendenhall 2006). We need to know more about the individual and contextual factors that may be important moderators affecting the effectiveness of international assignments. Individual characteristics particularly personality, seems to be significant in determining the impact of cross cultural learning experiences on developing global leaders (O’Sullivan, 1999). Some studies have found that extraversion moderates the impact of cross cultural learning experiences on global leader effectiveness (Caliguri and Tarique, 2012). Cultural intelligence has also been shown to increase the likelihood that individuals will engage in experiential learning on international assignments and that this then leads to outcomes such as global leadership self-efficacy (Ng, Van Dyne and Ang, 2009). Browne (2006) suggests that

GARAVAN 9781781954171 PRINT.indd 367

22/09/2017 16:32

368  Handbook of international human resource development identifying key personal characteristics is just as important in developing knowledge and skill in global leadership. Research that identifies how personality factors interact with GLD would be of considerable help in selecting candidates likely to benefit most. Questions also remain concerning the most appropriate amount of time required for development to occur on international assignments. Some writers take the view that this cannot be predicted since it depends on the scale of difference between the host culture and the leader (Brodbeck et al., 2000). Nevertheless, studies comparing the effect of time spent on international assignments would be of considerable value both in terms of gaining a better understanding of the learning processes involved and in addressing cost issues. The Ethnocentric Paradox in GLD It is somewhat of an irony that despite cultural intelligence being a desirable outcome expected through global leadership development, that much of the writing in this area could be accused of being derived from ethnocentric notions concerning how best this should be done. At the head of this charge is the dominance of designing global leader competences as the key means to direct learning and development. Some argue that there is a need to gain some uniformity across organisations in the training and development processes and practices used to develop global leaders (Briscoe, Schuler and Claus, 2008). In so doing, this should support the transferability of learning and development between organisations (McDonnell, Gunnigle and Lavelle 2009). McDonnell et al. (2010) suggest that the environmental factors impacting on organisations are leading to some degree of conformity due to each adopting supposed best practices, as well as increasing global integration driving the standardisation of training and development. The latter authors’ research examining talent management in MNEs, although finding some variation between MNEs depending on their home base, tended to confirm moves towards greater convergence with 78 per cent of companies assessing performance against global management competencies, 76 per cent utilising global management training, and 74 per cent and 65 per cent using short-term and long-term international assignments respectively. Although they did find significant variation between MNEs in their reports of how extensively they used these practices, the findings nevertheless suggest some convergence in the use of competences and assessment against them. Debates on the appropriateness of designing and using competences in leadership development are not new. Critics (Burgoyne, 1989; Hayes, Rose-Quirie and Allinson, 2000) argue that since managerial behaviour is both uncertain and unpredictable competences are both irrelevant and

GARAVAN 9781781954171 PRINT.indd 368

22/09/2017 16:32

IHRD and leader development  ­369 impractical. Deconstructing sophisticated areas of performance into individual knowledge and behavioural components is not only reductionist, but fails to understand the contextual and complex nature of job performance (Garavan and McGuire, 2001). Leaving aside these arguments, the use of competences in global leader development is fraught with two other significant problems. The first is that there is no real understanding as to what competences are the most critical (Morrison, 2000). But even if there were, the question remains of how much an array of general competences would really be significant in predicting performance given that both perceptions and the practice of leadership has cultural variation. Adding further complication, we also know that there are considerable differences between nations in how they perceive the notion of competence (see Winterton, Chapter 6 this volume). The second major problem is that competences are rarely designed in the absence of some standard(s) against which to benchmark and assess. Indeed, McDonnell et al.’s (2010) study supports this. Elsewhere, the literature also reports the use of 360 degree evaluation of global competences and global assessment centres (Simmonds and Tsui, 2010; Stahl, 2001). Earlier, this chapter outlined a number of limitations with the use of 360 degree feedback in differing cultural settings. Both competences and the use of 360 degree feedback are traditional approaches to undertake leader development in the Anglo sphere of countries. The extent to which global leader development is about focusing on leaders from all nationalities and cultures to be effective, must lead us to question how useful competences and their assessment through 360 degree feedback is as a mechanism for global leader development. Moving Beyond Competences Recent surveys suggest that developing the skills of global leaders is a top priority for firms operating internationally (EABIS, 2011; PWC, 2011). Yet arguably, the focus on global leader competences has failed to deliver against expectations. Mendenhall and Bird (2013) argue that many organisations have failed to understand either what global leadership is or the core competences of global leadership. They suggest there has been a disconnect between theory and practice. Instead, they have posited a new framework that consists of two core dimensions, complexity and boundary spanning. They define complexity as the dynamic interplay between multiplicity, interdependence, ambiguity and flux. Their argument is based on recognising how the expansion of people and issues that global leaders have to deal with causes such bewilderment that managing partnerships cross culturally is necessary to manage the interdependence.

GARAVAN 9781781954171 PRINT.indd 369

22/09/2017 16:32

370  Handbook of international human resource development A recent report has similarly suggested redirecting our thinking as to what we should expect from global leadership (EABIS, 2011). This report identified three distinct clusters of skills and knowledge. The first, context, suggests leaders need to know how business is changing and how business is conducted across different cultures. Next, global leaders need to understand how to manage and work with complexity. The third set of skills is identified as connectedness and captures the need for global leaders to have the skill set to interact with more extensive networks of stakeholders (such as NGOs, national and international regulators) than has previously been the case. There are some important implications that arise from this. The first is that issues of sustainability are increasingly being perceived as significant elements of global leadership that require a different focus than what has been looked at in competence frameworks to date (Pless, Maak and Stahl, 2011). Instead, recognising global leadership is as much about managing complexity and connectedness as it is about managing crosscultural understanding which suggests we need to think far more in terms of global (leadership) rather than (global) leader development (Day, 2000) and systems level leadership concepts (Clarke, 2012), as more suitable frameworks to guide practice in this area. Importantly, these models may also offer greater insights into how and why international assignments appear more effective mechanisms for developing global leadership.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE We need to understand far more how traditional activities used in leader development work in differing cultural settings. Here we identify 360 degree feedback and self-directed learning as two well established processes that may not be as effective when transposed to other cultures. Qualitative studies can help us gain insights in how these activities are actually received in practice within differing cultural settings and whether this influences their effectiveness. Comparative quantitative studies can also shed light on cross-cultural variations in perceptions of their effectiveness as development interventions by leaders. There are no cross-cultural studies to date that have examined the extent to which job challenge is a preferred form of leader development in different cultures. Theoretically, there is good reason to believe that cultural values might affect the extent to which such practices are part of how organisations constitute their leader development as well as individual preferences for how they wish to develop the knowledge and skills in leader roles. There is also a need to evaluate some of the major global leader competence frameworks that

GARAVAN 9781781954171 PRINT.indd 370

22/09/2017 16:32

IHRD and leader development  ­371 have been readily taken up by multinational companies. Studies need to determine whether such competence frameworks offer predictive validity for successful global leader performance controlling for factors such as cultural knowledge/intelligence and personality, both for which are likely to affect performance in such positions. Similarly, there is limited evidence regarding the effectiveness and impact of many of the global leader development practices that are increasingly being adopted by organisations. Given that international assignments are becoming less preferred, research designed to gain a better understanding of what determines the impact of cross-cultural assignments on global leader performance would help significantly in helping to design more cost-effective IHRD interventions that might be able to replicate this development experience without necessarily resorting to long-term international assignments. It may be that shorter term cultural exposure might be just as effective in some circumstances with the support of intensive at home training and development, if the actual content of the learning experience in influencing global leader performance can be more accurately determined. Finally, the shift away from global leader and more towards global leadership development suggests a completely new direction for research. Ideas can be drawn from the areas of responsible leadership and complexity leadership development to incorporate the need for global leaders to operate more effectively dealing with wicked problems in an increasingly connected world where sustainability is high on the agenda. Clarke’s model of complexity leadership development suggests that dealing with complexity requires both systemic as well as individual IHRD interventions (Clarke, 2013). Systemic interventions should focus on how to build more effective networks supporting knowledge transfer that result in more effective problem solving. IHRD interventions at the individual level should target developing more trusting and respectful relationships between organisations and stakeholders in a global network. This can be applied in the context of global leadership development. Qualitative research can begin by capturing how these types of interventions affect leadership effectiveness for organisations operating cross-culturally. Case studies can help to illuminate how such interventions interact with context in a dynamic way to reveal changes in global leadership effectiveness over time. Together these new directions for research represent a shift away from the traditional ways we have sought to develop leadership in organ­ isations based on the solo, heroic model of leadership towards identifying and evaluating leadership development interventions located within a more relational perspective of leadership and its development (Clarke, forthcoming).

GARAVAN 9781781954171 PRINT.indd 371

22/09/2017 16:32

372  Handbook of international human resource development

CONCLUSION This chapter has examined the issues that lie at the intersection of leadership and IHRD. It has identified two domains of literature that are central to this aspect of IHRD. The first posited a number of propositions suggesting that leader development practices may be subject to cultural contingencies and therefore may not be universally effective when applied in different cultural contexts. The second domain has considered what we know from the current literature on global leader development. With the growth of firms internationalising as markets become more global, the global leader has become a central focus for IHRD. Securing, developing and managing leadership talent to successfully operate in an international context is thought to be a key component in contributing to successful international business. What is interesting is that when the latter literature is seen in light of the former, it does lead to some interesting critical observations regarding the theory and practice of global leader development as it has been conceptualised to date. A particular problem is the limited empirical support for the effectiveness of GLD. Despite international assignments showing perhaps the greatest efficacy, there is still much we do not know about the underlying theoretical mechanisms. A further challenge has been the charge that the literature on GLD could be seen as somewhat ethnocentric given the dominant focus of much of the writing here on global competences and their assessment. There is a sense though that a breakthrough is beginning to be made in at least some areas. More recently, a number of authors have extended our understanding of the skills and knowledge necessary for global leaders arguing that understanding and managing cross-cultural differences is insufficient and that recognising it from a complexity perspective may prove more fruitful.

REFERENCES Adsit, D.J., London, M., Crom, S. and Jones, D. (1997). ‘Cross-cultural differences in upward ratings in a multinational company’, International Journal of Human Resource Management, 8, 385‒401. Allport, G. (1954). The Nature of Prejudice. Cambridge, MA: Addison-Wesley. American Management Association (AMA) (2010). Developing Successful Global Leaders: A Global Study of Challenges and Opportunities. New York: American Management Association. Aycan, Z. and Kanungo, R.N. (2001). ‘Cross-cultural industrial and organizational psychology: A critical appraisal of the field and future directions’. In N. Anderson, D. Ones, H.K. Sinangil, and C. Wiswesvaran (eds), Handbook of Industrial, Work and Organizational Psychology: Volume 1: Personnel Psychology (pp. 385‒408). Thousand Oaks, CA: Sage Publications. Bandura, A. (1977). Social Learning Theory. Upper Saddle River, NJ: Prentice Hall.

GARAVAN 9781781954171 PRINT.indd 372

22/09/2017 16:32

IHRD and leader development  ­373 Bennett, M.J. (1993). ‘Towards ethnorelativism: A developmental model of intercultural sensitivity’. In R.M. Paige (ed.), Education for the Intercultural Experience (pp. 27‒71). Yarmouth, ME: Intercultural Press. Branine, M. (2005). ‘Cross-cultural training of managers: An evaluation of a management development programme for Chinese managers’. Journal of Management Development, 24, 459. Briscoe, D., Schuler, R. and Claus, L. (2008). International Human Resource Management. New York: Routledge. Brodbeck, F.C., Frese, M., Akerblom, S., Audia, G., Bakacsi, G., Bendova, H. et al. (2000). ‘Cultural variation of leadership prototypes across 22 European countries’. Journal of Occupational and Organizational Psychology, 73, 1‒29. Brown, L.M. and Posner, B.Z. (2001). ‘Exploring the relationship between learning and leadership’. Leadership & Organization Development Journal, 22, 274‒280. Browne, J. (2006). ‘Meeting the competency needs of global leaders: A partnership approach’. Human Resource Management, 45, 309‒336. Burgoyne, J. (1989). ‘Creating the management portfolio: Building on competency approaches to management development’. Management Education & Development, 20, 56‒61. Burke, C.S., Sims, D.E., Lazzara, E.H. and Salas, E. (2007). ‘Trust in leadership: A multilevel review and integration’. The Leadership Quarterly, 18, 606‒632. Caliguri, P. and Tarique, I. (2012). ‘Dynamic cross-cultural competencies and global leadership effectiveness’. Journal of World Business, 47, 612‒622. Cherry, J., Lee, M. and Chien, C.S. (2003). ‘A cross-cultural application of a theoretical model of business ethics: Bridging the gap’. Journal of Business Ethics, 44, 359‒376. Clarke, N. (2010). ‘Emotional intelligence and its relationship to transformational leadership and key project manager competences’. Project Management Journal, 41(2), 5‒20. Clarke, N. (2011). ‘An integrated conceptual model of respect in leadership’. The Leadership Quarterly, 22, 316–327. Clarke, N. (2012). ‘Shared leadership in projects: A matter of substance over style’. Team Performance Management, 18, 196–209. Clarke, N. (2013). ‘Model of complexity leadership development’. Human Resource Development International, 16(2), 135‒150. Clarke, N. (forthcoming). Relational Leadership: Theory, Practice and Development. London: Routledge. Day, D.V. (2000). ‘Leadership development: A review in context’, Leadership Quarterly, 11, 581‒613. Day, D.V., Harrison, M.M. and Halpin, S.M. (2009). An Integrative Approach to Leader Development: Connecting Adult Development, Identity and Expertise. New York: Routledge. Day, S.V. and Sin, H.P. (2011). ‘Longitudinal tests of an integrative model of leader development: Charting and understanding developmental trajectories’. The Leadership Quarterly, 22, 545–560. DeRue, D.S. and Wellman, N. (2009). ‘Developing leaders via experience: The role of developmental challenge, learning orientation, and feedback availability’. Journal of Applied Psychology, 94, 859–875. Dickmann, M. and Doherty, N. (2010). ‘Exploring organizational and individual career goals, interactions, and outcomes of developmental international assignments’. Thunderbird International Business Review, 52, 313–324. Dickson, M.W., Den Hartog, D.N. and Mitchelson, J.K. (2003). ‘Research on leadership in a cross-cultural context: Making progress, raising new questions’. Leadership Quarterly, 14, 729‒768. Dorfman, P.W., Howell, J.P., Hibino, S., Lee, J.K., Tate, U. and Bautista, A. (1997). ‘Leadership in Western and Asian countries: Commonalities and differences effective leadership processes across cultures’. Leadership Quarterly, 8, 233‒274. EABIS (2011). Developing the global leader of tomorrow. European Academy of Business

GARAVAN 9781781954171 PRINT.indd 373

22/09/2017 16:32

374  Handbook of international human resource development in Society and Ashridge Business School. UNGC principles for responsible management education. Ellinger, A.D. (2004). ‘The concept of self-directed learning and its implications for human resource development’. Advances in Developing Human Resources, 6, 158‒177. Elliott J. and Grigorenko, E.L. (2007). ‘Are Western educational theories and practices truly universal?’,Comprehensive Education, 43, 1–4. Evans, P., Pucik, V. and Barsoux, J-L. (2002). The Global Challenge. Frameworks for International Human Resource Management. New York: McGraw-Hill. Fletcher, C. and Perry, E.L. (2001). ‘Performance appraisal and feedback: A consideration of national culture and a review of contemporary research and future trends’. In N. Anderson, D. Ones, H.K. Sinangil and C. Viswesvaran (eds), Handbook on Industrial, Work and Organizational Psychology: Volume 1. Personnel Psychology (pp.127‒144). Thousand Oaks, CA: Sage Publications. Frambach, J.M., Driessen, E.W., Chan, L-C. and Van der Vleuten, C.P.M. (2012). ‘Rethinking the globalisation of problem-based learning: How culture challenges selfdirected learning’. Medical Education, 46, 738‒747. Garavan, T. and McGuire, D. (2001). ‘Competencies and workplace learning: Some reflections on the rhetoric and the reality’. Journal of Workplace Learning, 13, 144‒163. Goh, J.W-P. (2009) ‘Parallel leadership in an unparallel world: Cultural constraints on the transferability of Western educational leadership theories across cultures’. International Journal of Leadership in Education: Theory and Practice, 12, 319‒345. Gregersen, H.B., Morrison, A.J. and Black, J.S. (1998). ‘Developing leaders for the global frontier’. Sloan Management Review, Fall, 21‒32. Hayes, J., Rose-Quirie, A. and Allinson, C. (2000). ‘Senior managers’ perceptions of the competencies they require for effective performance: Implications for training and development’. Personnel Review, 29, 92‒105. Hillier, N.J., Day, D.V. and Vance, R.J. (2006). ‘Collective enactment of leadership roles and team effectiveness: A field study’. Leadership Quarterly, 17, 387–397. Hofstede, G. (1980). Culture’s Consequences. International Differences in Work Related Values. Beverly Hills, CA: Sage Publications. Hofstede, G. (2001). Culture’s Consequences. Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Thousand Oaks, CA: Sage Publications. House, R.J., Wright, N.S. and Adita, R.N. (1997). ‘Cross-cultural research on organizational leadership: A critical analysis and a proposed theory’. In P.C. Earley and M. Erez (eds), New Perspectives in International Industrial Organizational Psychology (pp. 553‒625). San Francisco, CA: New Lexington. House, R.J., Hanges, P.W., Javidan, M. et al. (eds) (2003). Culture, Leadership and Organizations: Project GLOBE. Thousand Oaks, CA: Sage Publications. Jung, D.I. and Avolio, B.J. (1999). ‘Effects of leadership style and followers’ cultural orientation on performance in group and individual task conditions’. Academy of Management Journal, 42, 208‒218. Kayes, D.C., Kayes, A.B. and Yamazaki, Y. (2005). ‘Essential competencies for crosscultural knowledge absorption’. Journal of Managerial Psychology, 20, 578–589. King, S.N. and Santana, L.C. (2010). ‘Feedback intensive programs’. In E. Van Velsor, C.D. McCauley and M.N. Ruderman (eds), The Center for Creative Leadership Handbook of Leadership Development (pp. 97–123). San Francisco, CA: John Wiley & Sons. Kirkbride, P.S., Tang, S.F.Y. and Westwood, R.I. (1991). ‘Chinese conflict preferences and negotiating behavior: Cultural and psychological influences’. Organization Studies, 12, 365–386. Lapidot, Y., Kark, R. and Shamir, B. (2007). The impact of situational vulnerability on the development and erosion of followers’ trust in their leader. The Leadership Quarterly, 18, 16‒34. Lord, R.G., Foti, R. and De Vader, C. (1984). ‘A test of leadership categorization theory: Internal structure, information processing, and leadership perceptions’. Organizational Behavior and Human Performance, 34, 343‒378.

GARAVAN 9781781954171 PRINT.indd 374

22/09/2017 16:32

IHRD and leader development  ­375 Mabey, C. and Ramirez, M. (2012). ‘Comparing national approaches to management development’. In C.J. Brewster and W. Mayrhofer (eds), A Handbook of Research on Comparative HRM (pp. 185‒210). Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing. Maznevski, M. and DiStefano, J. (2000). ‘Global leaders are team players? Developing global leaders through membership on global teams’. Human Resource Management, 39, 195‒208. McCarthy, A. and Garavan, T. (2001). ‘3600 feedback process: Performance, improvement and employee career development’. Journal of European Industrial Training, 25, 5‒32. McCauley, C.D., Moxley, R.S. and Van Velsor, E. (eds) (1998). The Center for Creative Leadership Handbook of Leadership Development. San Francisco, CA: John Wiley & Sons. McCauley, C.D. and Van Velsor, E. (2004). Handbook of Leadership Development (2nd edition). San Francisco, CA: Jossey-Bass. McCauley, C.D., Van Velsor, E. and Ruderman, M.N. (2010). ‘Introduction: Our viewpoint of leadership development’. In E. Van Velsor, C.D. McCauley and M.N. Ruderman (eds), The Center for Creative Leadership Handbook of Leadership Development (pp. 1–26). San Francisco, CA: John Wiley & Sons. McDonnell, A., Gunnigle, P. and Lavelle, J. (2009). ‘Learning transfer in multinational companies: Explaining inter-organisation variation’. Human Resource Management Journal, doi:10.1111/j.1748-8583.2009.00104.x. McDonnell, A., Lamare, R., Gunnigle, P. and Lavelle, J. (2010). ‘Developing tomorrow’s leaders: Evidence of global talent management in multinational enterprises’. Journal of World Business, 45, 150‒160. Mellahi, J.H. (2000). ‘The teaching of leadership on UK MBA programmes: A critical analysis from an international perspective’. Journal of Management Development, 19, 297‒308. Mendenhall, M.E. (2006). ‘The elusive, yet critical challenge of developing global leaders’. European Management Journal, 24, 422‒429. Mendenhall, M.E. and Bird, A. (2013). ‘In search of global leadership’. Organizational Dynamics, 42, 167‒174. Mendenhall, M.E. and Stahl, G.K. (2000). ‘Expatriate training and development: Where do we go from here?’ Human Resource Management, 39(2/3), 251. Mendenhall, M., Stahl, G., Ehnert, I., Oddou, G., Kuhlmann, T. and Osland, J. (2004). ‘Evaluation studies of cross-cultural training programs: A review of the literature from 1988‒2000’. In D. Landis and J. Bennett (eds), The Handbook of Intercultural Training (pp. 129–144). Thousand Oaks, CA: Sage Publications. Millman, J., Taylor, S. and Czaplewski, A. (2002). ‘Cross-cultural performance feedback in multinational enterprises’. Human Resource Planning, 25, 29‒43. Morris, M.W., Williams, K.Y., Leung, K., Larrick, R., Mendoza, M.T., Bhatnagar, D. et al. (1998). ‘Conflict management style: Accounting for cross-national differences’. Journal of International Business Studies, 29, 729‒747. Morrison, A.J. (2000). ‘Developing a global leadership model’. Human Resource Management, 39, 117‒132. Nah, Y. (2000). ‘Can a self-directed learner be independent, autonomous and interdependent?: Implications for practice’. Adult Learning, 11, 18‒25. Ng, K-Y., Van Dyne, L. and Ang, S. (2009). ‘From experience to experiential learning: Cultural intelligence as a learning capability for global leader development’. Academy of Management Learning & Education, 8, 511‒526. O’Sullivan, L. (1999). ‘The distinction between stable and dynamic cross-cultural competences: Implications for expatriate trainability’. Journal of International Business Studies, 40, 709‒725. O’Toole, J., Galbraith, J. and Lawler, E.E. (2002). When Two or More Heads Are Better Then One: The Promise and Pitfalls of Shared Leadership. Los Angeles: Centre for Effective Organizations; University of Southern California. Oddou, G., Mendenhall, M.E. and Ritchie, J.B. (2000). ‘Leveraging travel as a tool for global leadership development’. Human Resource Management, 39, 159‒172.

GARAVAN 9781781954171 PRINT.indd 375

22/09/2017 16:32

376  Handbook of international human resource development Odenwald, S.B. (1993). Global Training: How to Design a Program for the Multinational Corporation. Homewood, IL: Business One Irwin. Ohlott, P. (2004). ‘Job assignments’. In C.D. McCauley and E. Van Velsor (eds), The Center for Creative Leadership Handbook of Leadership Development (pp. 151–182). San Francisco, CA: John Wiley & Sons. Pekerti, A.A. (2005). ‘Cross-cultural perceptions in the leadership process: Theoretical perspective on the influence of culture on self-concepts and manager-worker attributions’. Thunderbird International Business Review, 47, 711‒735. Pless, N.M., Maak, T. and Stahl, G.K. (2011). ‘Developing responsible global leaders through international service learning programs: The Ulysses experience’. Academy of Management Learning and Education, 10, 237‒260. PriceWaterhouseCoopers’ Annual Global CEO Survey (PWC) (2011). Growth reimagined: Prospects in emerging markets drive CEO confidence. PriceWaterhouseCoopers. Rauch, A., Frese, M. and Sonnentag, S. (2000). ‘Cultural differences in planning/success relationships: A comparison of small enterprises in Ireland, West Germany and East Germany’. Journal of Small Business Management, 38, 28‒41. Sagiv, L. and Schwartz, S.H. (2000). ‘A new look at national culture: Illustrative applications to role stress and managerial behavior conference presentations’. In N. Ashkanasy, M. Peterson and C. Wilderom (eds), Handbook of Organizational Culture and Climate (pp. 417‒437). Thousand Oaks, CA: Sage Publications. Simmonds, D. and Tsui, O. (2010). ‘Effective design of a global leadership programme’. Human Resource Development International, 13, 519‒540. Smith, P.B., Peterson, M.F., Schwartz, S.H., Ahmad, A.H., Akande, D., Andersen, J.A. et al. (2002). ‘Cultural values, sources of guidance, and their relevance to managerial behaviour: A 47-nation study’. Journal of Cross-Cultural Psychology, 33, 188‒208. Stahl, G.K. (2001). ‘Using assessment centers as tools for global leadership development: An exploratory study’. In M. Mendenhall, T.M. Kuhlman and G.K. Stahl (eds), Developing Global Business Leaders: Policies, Processes and Innovations (pp. 197‒210). Westport, CT: Quorum. Stewart, R., Barsoux, J.L., Kieser, A., Ganter, H.D. and Walgenbach, P. (1994). Managing in Britain and Germany. Berlin: Springer. Suutari, V. (2002). ‘Global leader development: An emerging research agenda’. Career Development International, 7, 218‒233. Triandis, H.C. (1995). Individualism and Collectivism. Boulder, CO: Westview Press. Uhl-Bien, M. (2006). ‘Relational leadership theory: Exploring the social processes of leadership and organizing’. The Leadership Quarterly, 17, 654–676. Uhl-Bien, M. and Ospina, S.M. (2012). Advancing Relational Leadership Research: A Dialogue Among Perspectives. Charlotte, NC: Information Age Publishing. Wilson, C.E. (2008). ‘Faith-based motivation and leader development: International service experiences as a catalyst for moral development and cultural intelligence’. Culture and Religion: An Interdisciplinary Journal, 9, 287‒300. Yukl, G. (2002). Leadership in Organizations (5th edition). Upper Saddle River, NJ: Prentice Hall. Yukl, G. (2006). Leadership in Organizations (6th edition). Upper Saddle River, NJ: Pearson Prentice Hall.

GARAVAN 9781781954171 PRINT.indd 376

22/09/2017 16:32

18. IHRD and developing global teams Gary N. McLean and Sewon Kim

INTRODUCTION In today’s business environment, it is common to see project teams that consist of members with diverse cultural backgrounds. In its most simple form, a global team can be defined as “teams that span multiple geographic, temporal, and cultural boundaries” (Connaughton and Shuffler, 2007, p. 387). We will say more about types of global teams in the next section. Global team members are often not co-located nor do they necessarily sit in close physical proximity, but they still work together as if they were in a traditional face-to-face team (Martins, Gilson, and Maynard, 2004). It no longer matters to Nike, for example, if product designers are located on the west coast of the US, some product-manufacturing engineers are in China, other engineers are in Mexico, and distribution specialists exist throughout the globe. Similarly, BP, Royal Dutch Shell, Siemens, Samsung Electronics, Toyota, Microsoft, and many others also have engineering or programming teams that are spread across the world, just to name a few. A study conducted by Minton-Eversole (2012) for the Society for Human Resource Management (SHRM) found that almost half of the US surveyed companies used virtual teams. Further, from a global perspective, “organizations with multinational operations are more than twice as likely (66 percent) to use virtual teams compared with those having US-based operations (28 percent)” (Minton-Eversole, 2012, para. 2). Another recent survey, also in the United States, by the Institute for Corporate Productivity (Castellano, 2012), reported that over 90 percent of surveyed companies answered that they would increase or at least maintain the size of their global workforce during the coming years. Thus, many businesses today have multiple global teams working together on a single product or process, and there exists little debate on whether globalization is an everyday reality (Tannenbaum et al., 2012). Moreover, it is expected in contemporary business environments that professionals and organizational managers will recognize and be prepared for the rising demand for multicultural collaboration. A global survey (Paradis, 2008) reported that nearly a quarter of 377

GARAVAN 9781781954171 PRINT.indd 377

22/09/2017 16:32

378  Handbook of international human resource development ­ articipating firms have workforces of more than 10 nationalities. Many p of these firms have global operations in Europe, Asia, North America, Latin America, the Middle East, or Africa or plan to expand to those regions within the next few years. The driving forces for this growing worldwide connection are revenue growth opportunities, maximizing firm value to shareholders, developing international visibilities, improving support for global customers, and capitalization of novel markets. This globalization trend will bring an increase in the number of global teams and make their use unavoidable for future business success. Developing global teams will also become more central for effective IHRD strategies and activities in this multinational business environment. As well as the reported interest and increase in the use of global teams, in which two or more individuals with different national, racial, language, and/or cultural backgrounds come together to achieve a common goal (Connaughton and Shuffler, 2007; McDonough, Kahnb, and Barczaka, 2001), the emergence of global teamwork is becoming a significant theme in contemporary business environments – because organizations are expanding their operations globally via alliances, mergers and acquisitions, and joint ventures for easier access to world markets and resources, product localization, and other potential advantages (Deresky, 2013). The development of global teams and workforce is playing a more substantial role in leveraging businesses’ competitive advantages for strategic and international HRD. Accordingly, this chapter explores global teams by presenting their benefits; introducing theories and research, as well as practice implications, related to global team operations and types; critical factors for global team success; and challenges and approaches for developing global teams. Future trends and directions for research are also discussed.

DEFINING DIFFERENT TYPES OF GLOBAL TEAMS There are many ways to view types of work teams. This chapter focuses on the three most important dimensions of global business teams – whether they are virtual or on-site, cross-functional or functional, and vertical or horizontal. Martins, Gilson, and Maynard (2004) added to these, crossorganizational, to include teams mixed with employees from vendors or from joint ventures; we have not included this type in this chapter because of space. Other dyadic comparisons that might have been included are formal/informal, ongoing/project-based, and single country/global.

GARAVAN 9781781954171 PRINT.indd 378

22/09/2017 16:32

IHRD and developing global teams  ­379 Within each dimension, the advantages and disadvantages of each in terms of global teams are set out. Virtual/On-site As technology has developed, the effectiveness and efficiency of virtual global meetings has improved. The progression of technology has moved from conference telephone calls to the use of web-based meeting software that now allows for multiple participants (for example, Skype Premium allows for up to 12 participants synchronously) to Cisco’s TelePresence™. The latter mentioned technologies overcome the major disadvantage of telephone conferencing – the inability to view a participant’s body language. TelePresence™ is still relatively new and has the disadvantage of requiring an installed system at both ends of the conversation, which is expensive. The system, however, is amazing, allowing for life-sized participation in three-dimensional images (Lichtman, 2006). At the same time, there remain times when a face-to-face meeting is preferable, especially at the top levels of an organization (Hertel, Geister, and Konradt, 2005), yet this may be changing with the emergence of new technology. Travel costs, jet leg, travel time away from the home workplace, and threats from terrorism (DeFrank, Konopaske, and Ivancevich, 2000) are all downsides of face-to-face meetings. In spite of these costs, however, there are two primary advantages of bringing people together on site for a meeting. First, no technology currently available can give a perfect replication of face-to-face behavior. This can happen only when people are brought together in one room for a meeting. A second advantage is that, as with many meetings, the most effective time is what takes place outside of the meeting in one-on-one conversations (Oshri, Kotlarsky, and Willcocks, 2007). Functional/Cross-functional Another way of viewing global team types is by function or cross-functionally (Gluesing and Gibson, 2004). Functional teams in global organizations are very common. I (McLean) have worked with organizations with global teams comprised of sales, marketing, human resources, IT, R&D, production, or distribution. Each of these companies has some structure in place to coordinate the activities of employees around the world who share common functions. These are critical teams as they are often coordinating day-to-day activities. Whenever an organization is decentralized, it will need global functional teams. At the same time, there are other teams, usually project-based, that are

GARAVAN 9781781954171 PRINT.indd 379

22/09/2017 16:32

380  Handbook of international human resource development enhanced when members are cross-functional, representing different views of the company. In fact, many organizations are limited because their functions operate as silos, without sharing of information across the functions. When cross-functional global teams are in place and operating well, there is a greater likelihood that each function will know and understand what other functions and other geographies are planning and doing (Zolin et al., 2004). Vertical/Horizontal Because power distance is one of the variables identified by Hofstede, Hofstede, and Minkov (2010) and House et al. (2004; see also Littrell, 2012) as a factor differentiating cultures, the distinction between vertical and horizontal in forming global teams is very important. Vertical teams will include persons from different levels within the organization, while horizontal teams will try to keep team membership open only to persons at the same level in the organization. In countries where power distance is low, this may not be a particularly important distinction to make. But in countries with high power distance, such as India or Korea, having persons from different levels in the organization on the same team may make it very difficult for those at lower levels to participate fully and honestly, because of fear of appearing disrespectful to those in higher authority. Even those in higher authority may be stifled in their participation for fear of losing face with subordinates. Thus, great care and understanding of the cultures in which the company functions is necessary in putting global teams together in understanding whether a team needs to be horizontal to be most effective, or whether a vertical team can benefit from the varied experiences of team members without impeding the performance of individual members. The types of teams, with their benefits and shortcomings, are presented in a brief summary in Table 18.1.

CRITERIA FOR SUCCESSFUL GLOBAL TEAMS There is essentially one criterion to use in measuring the success of any business team: did it accomplish its purpose (Adler and Gundersen, 2007; Prasad and Akhilesh, 2002)? This is a little simplistic, however, in measuring the success of a team in a global context. Other criteria (Mathieu et al., 2008) could include:

GARAVAN 9781781954171 PRINT.indd 380

22/09/2017 16:32

IHRD and developing global teams  ­381 Table 18.1  Summary of global team types, with benefits and shortcomings Type, with Definition

Benefits

Shortcomings

Virtual: at  a distance, facilitated by technology

● More

● Cost

On-Site:  co-located, meeting face-to-face

Functional: all  members from same function

Cross-functional:  members represent different functions

GARAVAN 9781781954171 PRINT.indd 381

frequent interaction ● Less cost for travel ● Less stress from travel and jet lag ● More time at home office ● Reduces terrorism threat ● Feels more authentic ● Greater opportunity for informal social interaction ● Reduced technology costs ● Increased communications through body language ● Takes a globally strategic view of the function ● Shares common work-related activities and accountabilities ● Shares a common business vocabulary ● Shares a comfort zone in meeting agendas ● Allows team to see big picture of the system ● More likely to include representation from more locations ● May contribute to breaking down silos ● Optimizes the whole system, not just one function

of technology informal social interaction ● Often, less body language feedback ● Does not feel real ● Reduced

● Increased

costs for travel stress from travel and jet lag ● Increased time away from the office ● Greater risk of terrorism threat ● Infrequent opportunities to be together ● Maintains function silos, isolating the function ● By optimizing the function, may sub-optimize the system ● Fails to gain strategic insights from other functions ● All locations may not have the function, thus isolating that location ● Increased

● May

not share same interest in agenda ● May not understand business vocabulary of all functions ● May not understand the activities and accountabilities of all functions

22/09/2017 16:32

382  Handbook of international human resource development Table 18.1  (continued) Type, with Definition

Benefits

Shortcomings

Vertical:  members are from different levels

● Senior

● Junior

Horizontal:  members are from the same level

members get to hear from junior members, and vice versa ● Senior members more likely to implement outcomes of team agendas ● Senior members are in a better position to provide needed resources for the team’s agenda ● Senior members are more likely to have a big picture of the organization ● More egalitarian participation ● All members more likely to carry their own weight in team assignments ● More likelihood of fuller participation

members may be intimidated by senior members, especially in high power distance cultures ● Senior members may be too busy to participate in team meetings

● Lack

senior level champions for resources and implementation ● May lack a big picture of the organization ● May create a knowledge gap, as senior level does not hear from those closest to the work

●

Did each person, regardless of position or country represented, have an equal opportunity to participate, even if actual participation was not equal by choice (McLean, 2006)? ● Were the cultural norms of each participant honored, even if not followed? (It is not always possible to follow conflicting cultural values, for example, the disparate views of male and female roles and participation.) (Connaughton and Shuffler, 2007) ● Did each member of the team feel valued as a team member? Was everyone on the team able to save face? Were approaches used to make it easier for those for whom the core language was a second language to understand and participate? Language competence differences can create different tiers of participation. (McDonough, Kahnb, and Barczaka, 2001)

GARAVAN 9781781954171 PRINT.indd 382

22/09/2017 16:32

IHRD and developing global teams  ­383 ●

Were efforts made to equalize the burden of different time zones in scheduling meetings? (Martins, Gilson, and Maynard, 2004) ● Were efforts made to help team members get to know other team members, for example, sharing pictures (if non-visual means were used for meetings), sharing family and personal stories, having occasional opportunities to get together in person, sharing important dates, and so on? ● Did learning take place about culture, geography, global business practices, global current events, and so on? (Baba et al., 2004); did the team learn from its mistakes rather than blame? (Senge, 2014); was genuine praise and gratitude shared among team members? There are a number of steps that a global team could take before beginning their work together (Dyer, Dyer, and Dyer, 2013; McLean, 2006). First, they can discuss and agree on the primary purpose for which the team has been created. Second, the team can brainstorm a list of team values that they want to use to monitor their interactions and that could also be used to determine whether they were successful as a team. This list should be a live one for which items should be added as needed and others deleted as they no longer serve the team. The responsibility for monitoring these values should be shared and should not fall on the facilitator alone. Third, each member of the team might indicate any concerns that they have about their participation in the team, with discussion following about how to address the concern and use those responses to increase the likelihood of the team’s success.

DEVELOPING GLOBAL TEAMS: THE IHRD ISSUES Stages of Global Team Development Many researchers have studied how newly created teams develop into functioning, mature teams (for example, a natural history (Baba et al., 2004); a temporal rhythm (Manzevski and Chudoba, 2000); the role of trust (Jarvenpaa, Shaw, and Staples, 2004); virtual teams (Martins, Gilson, and Maynard, 2004); conflict and collaborative management styles (Paul et al., 2004); and so on). Although there is no commonly accepted model or theory on global team development, it is helpful to understand key models for traditional team development that are potentially applicable in a global team context. The five-stage model, one of the most popular team development models, characterizes teams proceeding through the five sequential stages of forming, storming, norming, ­performing, and

GARAVAN 9781781954171 PRINT.indd 383

22/09/2017 16:32

384  Handbook of international human resource development adjourning (Tuckman, 1965), a model developed in the US and compatible with US cultural norms. The first stage, forming, is characterized by a beginning period in which team members try to determine what kinds of behaviors are acceptable for their team’s purpose, structure, procedures, and leadership. The storming stage is one of intrateam conflict among team members as they resist the influence the team has on individuality, clearly more acceptable in an individualistic culture, rather than collectivist cultures, especially those focused on harmony (Li, 2006). The norming stage starts when team members establish close relationships and cohesiveness, find new collective ways to work together, and set appropriate norms for their behaviors in the context of the team (Taggar and Ellis, 2007), a process that may work better in a collectivist culture. In the fourth, performing stage, the team displays proficiency in working toward achieving the designated goals. The last stage, adjourning – applicable only for temporary teams – is a final period of wrapping up team activ­ ities and preparing to separate. This linear model is often interpreted as the team becoming more effective as it progresses through the identified sequential stages. Yet, even if these stages occur throughout the lifetime of the team, it is unlikely that they will occur in the same way in all teams, nor is it likely that they will occur sequentially without revisiting some of the stages from time to time (Miller, 2003). Since its inception, the model has been applied in a variety of organ­ izational contexts, domestically and internationally, and has become one of the most widely acknowledged among field practitioners and scholars (Bonebright, 2010). Although this traditional model serves as a useful lens for grasping team dynamics in a simplified manner; however, critical researchers have questioned if one model can fit all teams (Cassidy, 2007; Sundstrom, De Meuse, and Futrell, 1990). What makes a team effective is actually far more complex and often multilayered, especially in a global or multicultural context (Connaughton and Shuffler, 2007; Miller, 2003). An alternative model for temporary team development is the ­punctuated-equilibrium model (Gersick, 1988). Gersick found that temporary teams with deadlines do not follow the typical five-stage model and, instead, focus mainly on the timeframe set for a team’s project. Five time segments characterize this alternative model. The first transition point begins when the team has its first meeting and sets the team’s initial direction. The team experiences a period of inertia until the first half of the team cycle is complete. The second transition point starts when the team members realize that their time is limited, and they need to move forward to accomplish the team project. Usually, this point triggers major changes on team-wide issues, including revising the team’s direction. Then, a

GARAVAN 9781781954171 PRINT.indd 384

22/09/2017 16:32

IHRD and developing global teams  ­385 period of second inertia follows the transition. The last transition point is characterized by remarkably accelerated team activities to complete the given project. Rhythmic patterns similar to those of the punctuatedequilibrium model have also been observed in contemporary global team studies (Baba et al., 2004; Brown and Eisenhardt, 1997; Manzevski and Chudoba, 2000). As many global teams, particularly virtual teams, are temporary task groups, this model provides practical insights in guiding a global team’s life cycle and its effective development. Team Building A popular approach in developing teams is team building. In his classic work in this area, Beckhard (1969) recommended the following objectives, in order, for team building: (1) founding a team’s purpose and goals; (2) establishing clarity in team members’ roles and responsibilities; (3) forming team policies and procedures; and (4) developing interpersonal relationships. Team building can be applied at various developmental stages and in different situations. When team building is applied for a team design phase, the following steps are particularly helpful (Dyer, Dyer, and Dyer, 2013). First, the global team develops a shared priority level, as, in the beginning period of team formation, each person brings in differing levels of priority or commitment to the work of the global team. Next, the team identifies positive and negative expectations of team members on the new team’s processes and outcomes. Third, the team clarifies a core mission and goals and develops a consensus. Fourth, the team formulates ground rules and operating guidelines. Some of the areas where rules and guidelines may be useful are, among others: How are we going to make a decision? How are we going to ensure that everyone discusses an issue and expresses a concern? How are we going to handle a disagreement? How are we going to make sure that the work of the team gets done within the deadline? How are we going to evaluate and change things not contributing to achieving a core mission and goals? Team building for virtual global teams may follow the same processes but may be more difficult to implement. Huang et al. (2003) supported the concept of incorporating the objectives of team building into virtual global teams. They found that: [A] GSS [group support system] with an embedded goal-setting structure helped virtual teams to foster better team cohesion, better team commitment, and better collaboration climate than a GSS without the goal-setting ­structure. . .[they] also had better perceived decision quality and generated more decision alternatives. (Huang et al., 2003, p. 359)

GARAVAN 9781781954171 PRINT.indd 385

22/09/2017 16:32

386  Handbook of international human resource development Table 18.2 Virtual team training modules in importance by percentage order   1. Training on how to lead a virtual team meeting   2. Leader training on how to coach and mentor team members virtually   3. Training on how to monitor team progress, diagnose team problems, and take corrective actions   4. Training to use communications technologies   5. Leader training on how to manage team boundaries, negotiate member time commitments with local managers, and stay in touch with team sponsors   6. Training on how to establish trust and resolve conflicts in virtual teams   7. Communications skills training – cultural sensitivity, etc.   8. Team-building training for new virtual teams   9. Training to select the appropriate technologies to fit team tasks 10. Leader training on how to evaluate and reward individual contributions on the virtual team 11. Training on how to select virtual team members, establish a virtual team charter, and assign virtual team roles 12. Realistic preview of virtual team challenges 13. Training on what qualities to look for in prospective virtual team members and leaders

(71.5) (69.5) (68.1) (64.5) (64.5) (61.1) (58.4) (57.2) (57.1) (56.1) (53.5) (52.8) (51.1)

Note:  Adopted from Rosen et al. (2006), with permission of the author and publisher. Percent of respondents stating that each module is very or extremely valuable is shown in parentheses.

Training Training content for global teams can cover various topics, including cultural orientation, communication, team processes, conflict management, leadership, technologies, and so on. Table 18.2 shows the relative priority of training modules for virtual teams drawn from a survey of 440 HR professionals in the United States (Rosen, Furst, and Blackburn, 2006). Recipients of training can be a team leader, team members, or an intact team. Training for task-related skills is better directed at individual team members, while training for relationship-related skills or teamwork relevant attitudes and behaviors is best directed at an intact team (Mathieu et al., 2008). Multiple formats can be applied for the delivery of cross-

GARAVAN 9781781954171 PRINT.indd 386

22/09/2017 16:32

IHRD and developing global teams  ­387 cultural training. They include attribution (enabling trainees to make isomorphic attributions), cultural awareness training (understanding and appreciating cultural differences), interaction training (on-the-job training from experienced employees), language training (facilitating team adjustment), didactic training (giving factual information), and experiential training (learning by doing) (Littrell et al., 2006). Cultural assimilators, in which trainees are given a brief case study with four possible options for action with only one correct, have been shown to be very effective in cross-cultural training (Brislin et al., 1986) and could well be used for brief experiences each time a virtual team comes together. Often, readiness for learning is at its peak when people are experiencing challenges due to global team dynamics. Experiential learning can be among the most effective approaches to cross-cultural understanding. There is an old saying in Confucius cultures, “I hear and I forget; I see and I remember; I do and I understand.” As indicated in this quote, most effective programs on cross-cultural training use not only a traditional didactic approach, but also an experiential approach (Yamazaki and Kayes, 2004). Experiential learning is basically learning by reflection on doing. A key element of experiential learning is that learning takes place best as individuals meaningfully engage in a total experiential process. The global team context is rich for learning, as knowledge, attitudes, and skills can be obtained through reflection and practice. Some firms use multicultural team membership to develop future global leaders (Maznevski and DiStefano, 2000).

DEVELOPMENTAL CHALLENGES FOR GLOBAL TEAMS Several challenges exist in effective global team functioning and development. Among them, the most often identified critical factors include communication, distance and dispersion, decision-making, motivation, and leadership (Connaughton and Shuffler, 2007; Maznevski and DiStefano, 2000; House et al., 2004; Hertel, Geister, and Konradt, 2005; McLean, 2006), all concepts that are essential in high quality IHRD approaches. Communication describes the process of sharing meaning by exchanging messages via words (verbal or written) and behaviors. Unfortunately, in a global team context, this communication process is often interrupted by cultural noise, and the meaning of a word or perception of behavior can be distorted by a team member’s cultural assumption (Storti, 1994). For example, let’s imagine that a US team leader asks his or her Russian team member, “How long will it take you to finish this project?” While the US

GARAVAN 9781781954171 PRINT.indd 387

22/09/2017 16:32

388  Handbook of international human resource development team leader intended to invite the team member to participate in decisionmaking from a US cultural perspective (team and horizontal relationship approach), the Russian team member may interpret it from a Russian cultural lens (boss-subordinate vertical relationship approach) as, “Why doesn’t s/he just tell me when it is due? S/he is the boss!” and becomes frustrated (Hofstede et al., 2010; House et al., 2004). Moreover, virtual global team members are mostly limited in handling non-verbal messages because of their physical distance, and this can contribute to increased misunderstanding and distrust among team members (Martins, Gilson, and Maynard, 2004). This issue of cross-cultural communication can be severe in negotiation and conflict management situations and, consequently, may decrease team members’ commitment and engagement levels in the long run (Ferriera et al., 2014). Thus, communication is a vital component in managing global team processes effectively. Another challenge that global teams face is the need for motivating, coordinating, and leading team members from different cultures (Hertel, Geister, and Konradt, 2005; Mathieu et al., 2008; Yorks et al., 2003). Individual motivation at work is influenced by what each worker values and why s/he is engaged in his or her work. The meaning of work (MOW) study (Meaning of Work International Research Team, 1987) asked study participants if they would continue to work after winning a large sum of money. The respondents’ percentages ranged from 94 percent in Japan to 69 percent in the UK and indicated that there existed a significant variation in work centrality across cultures. In a more recent MOW study, by two leading HRD scholars, Ardichvili and Kuchinke (2009) also found that individuals are motivated, in addition to earning the necessities of life, by other factors (for example, social gratification). Incentives and rewards work differently in different cultures (Marquardt and Egnel, 2001). For example, Japanese compensation and promotion systems, while changing, have historically been based on seniority and lifetime employment. In China, relatively low wage earners are compensated with free housing, medical care, and education. A Nigerian team member is probably uncomfortable with individual achievement recognition, as the Nigerian and sub-Saharan African society values harmony and neutrality. Even within one culture, administering rewards and recognition can be difficult, as noted by Kohn (1992, 1993). Due to this complexity escalated by cultural and other related factors, leading a global team is not an easy task (Thomas, 2008). Cross-cultural studies have found that cultures moderate the anticipated relationships between leadership behaviors and follower outcomes (Hofstede et al., 2010; House et al., 2004; Kim, Egan, and Moon, 2014).

GARAVAN 9781781954171 PRINT.indd 388

22/09/2017 16:32

IHRD and developing global teams  ­389 Participative leadership, that usually has generated positive results among US employees, has been recently questioned in its effectiveness in several other cultural contexts, such as Arabic cultures (Northouse, 2013). Interestingly, however, Chu (2013) recently found that there is growing evidence of acceptance of participative leadership among Chinese workers who would traditionally have not expected to find participative leadership. In Latin American cultures, team leaders are expected to be a whole person rather than a task-oriented functional. On the other hand, Dutch and Scandinavian people place emphasis on egalitarianism and are often skeptical about the value of dominant leadership. In line with these perspectives, the GLOBE study (House et al., 2004) involving 17,000 respondents in 62 countries found that culture influences leadership behaviors and attributes and subordinate perceptions or responses in a global context. In extending Hofstede’s work, GLOBE researchers identified nine cultural dimensions (performance orientation; assertiveness; uncertainty avoidance; power distance; institutional collectivism; in-group collectivism; gender egalitarianism; future orientation; and humane orientation) and ten regional clusters (sub-Saharan Africa; Latin Europe; Middle East; Southern Asia; Confucian Asia; Eastern Europe; Germanic Europe; Anglo; Nordic Europe; and Latin America) that represent a more comprehensive way to understand different cultures and motivational factors (Javidan et al., 2006). They further identified six leadership behaviors (charismatic/value-based, team-oriented, participative, humane-oriented, autonomous, and self-protective) based on implicit leadership theory and reported how each leadership behavior was perceived to be effective in each regional cluster (House and Javidan, 2004). Although different leadership approaches were found to be important in different cultural contexts, interestingly, the GLOBE project also indicated that there were universally endorsed ineffective leadership attributes across cultures; they included being a loner, asocial, uncooperative, dictatorial, non-explicit, and irritable, among others (House et al., 2004; Northouse, 2013).

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE Although a few recent studies have identified factors and processes imperative for effective global team management and development, many have been conducted in controlled settings, such as graduate schools or laboratories (Mathieu et al., 2008) or with small samples. In order to have accurate understanding and application, future research must employ

GARAVAN 9781781954171 PRINT.indd 389

22/09/2017 16:32

390  Handbook of international human resource development more real working professionals and organizations for global team investigation. Diversity is often connected with synergistic effects in conventional team development settings, assuming that various perspectives and areas of expertise raise the level of team effectiveness and maturity. However, interrupted or limited communication opportunities, especially in a global virtual team setting, may be problematic in utilizing diversity in a constructive way (Hertel, Geister, and Konradt, 2005). Related to this, there might be a certain cultural background that is more beneficial in a global team setting from an international HRD perspective. For instance, team members from collectivistic cultures can easily identify with the team and shorten an acculturated developmental period, while team members from individualistic cultures might better cope with isolated task conditions, particularly in virtual team settings. Future research might investigate these diversity issues more systematically. Although team development has been an important area of HRD research since its formal beginnings, there has been little research on dynamic global team processes (Bonebright, 2010; Mathieu et al., 2008). Extant studies explored participating team structures or leader behaviors at one point in time and relevant variables at other points, usually in later times, and examined the association between the two. However, team environments can change during the life of the team for several reasons (for example, team member turnover or adjusted project deadline), resulting in team dynamics and structure changes. In addition, there exist very few studies investigating the overall life and development cycle of a global team. Thus, future researchers can employ longitudinal studies to address the aforementioned matters. Organizational learning theorists have suggested that teams play a key role in organizational learning processes (Senge, 2014). This is especially needed in international joint venture contexts as global team members are brought together to leverage organizational knowledge, streamline business processes, and maximize performance across geographic locations. However, there are limited empirical studies that adequately address the link between global teams and organizational learning (Roloff, Woolley, and Edmondson, 2011). Future research is warranted to illustrate the link and processes applied between the two, as well as to identify what serves as a facilitator or barrier for knowledge transfer and transformation in multinational teams. Future studies should expand the conceptualization of culture to include team and organizational cultures, as well as countries and demographics. There is an increasing notion that different sectors and industries have different characteristics, and subcultures exist even within an organization (Connaughton and Shuffler, 2007). As one framework

GARAVAN 9781781954171 PRINT.indd 390

22/09/2017 16:32

IHRD and developing global teams  ­391 cannot fit all situations, future research is warranted to adopt multilevel or multifaceted views of culture in global team studies. Technology is accelerating the globalization phenomenon and thus contributing to the greater use of global teams. A variety of group support systems and tools are continuously being developed to assist global teams. These include electronic bulletin boards, electronic data interchange, video-conferencing, electronic meeting systems, group decision systems, electronic brainstorming systems, voting tools, electronic performance monitoring systems, and so on (Martins, Gilson, and Maynard, 2004). Hence, advanced technology will enable firms to be better equipped to respond to the dynamic environments of global business, especially in a global virtual team context. There is increasing agreement that globalization and technology drastically change the nature of work (Ardichvili and Kuchinke, 2009). Laborintensive jobs will move to more cost competitive places or countries; artificial intelligence and automated technology will replace many existing jobs; future global workforces will become more mobile; and there will be an unceasing restructuring of labor markets (Deresky, 2013; Marquardt and Egnel, 2001). These events will introduce changes in several areas of global teams, including task types, business processes, team composition, and motivation factors. As with any changes, continuous learning and unlearning will be a central component for effective global team development. There is an increasing demand for informal learning in developing global talents. A survey by ASTD and the Institute for Corporate Productivity signaled the growing popularity of social media for employee learning and development; managers in over three quarters of the surveyed global businesses (out of 3,800 global organizations) indicated their increased use of various types of social media, including wikis, micro-blogging, expert directories, repositories of learning videos, or community of practice (Zielinski, 2012). Many global companies (for example, Accenture or Microsoft) have started to use these informal learning methods or plan to use them more actively for the coming years. Sharing and cooperation of informal learning will become key means for developing human capital in the future global network era. The more difficult question to answer, however, would have been, “Are global teams developed?” Unfortunately, as with many aspects of global­ ization, organizations take it for granted that people will be able to adjust on their own. So, little thought is given to how teams are organized, how members are assigned, how to deal with conflict or cultural differences, and how leadership is determined or implemented. But, what we have emphasized throughout this chapter is that creating effective and efficient

GARAVAN 9781781954171 PRINT.indd 391

22/09/2017 16:32

392  Handbook of international human resource development global teams is hard work. It takes dedication, commitment, energy, resources, and time for such teams to develop.

CONCLUSION The development of global teams is a major topic within IHRD. Global teams have become a significant structural form within contemporary international organizations, including MNCs. To be effective, organizations need to invest in the development of global teams. It is insufficient to assume that simply putting a geographically diverse group of employees together will achieve the desired outcomes. IHRD practitioners can use a variety of training interventions and experiential learning processes to help enhance the effectiveness of global teams. Organizations have a tendency to think ethnocentrically and, therefore, ignore significant culture differences that exist within and between global teams. It is incumbent on IHRD researchers and practitioners to engage better with the nature and challenges of global teams to ensure that organizations leverage their considerable benefits and opportunities.

REFERENCES Adler, N.J., and Gundersen, A. (2007). International Dimensions of Organizational Behavior. Mason, OH: Cengage Learning. Ardichvili, A., and Kuchinke, K.P. (2009). International perspectives on the meanings of work and working: Current research and theory.  Advances in Developing Human Resources, 11(2), 155‒167. Baba, M.L., Gluesing, J., Ratner, H., and Wagner, K.H. (2004). The contexts of knowing: Natural history of a globally distributed team. Journal of Organizational Behavior, 25(5), 547‒587. Beckhard, R. (1969). Organization Development: Strategies and Models. Reading, MA: Addison-Wesley. Bonebright, D.A. (2010). 40 years of storming: A historical review of Tuckman’s model of  small group development. Human Resource Development International, 13(1), 111‒120. Brislin, R.W., Cushner, K., Cherrie, C., and Yong, M. (1986). Intercultural Interactions: A Practical Guide. Beverly Hills, CA: Sage Publications. Brown, S.L., and Eisenhardt, K.M. (1997). The art of continuous change: Linking complexity theory and time-paced evolution in relentlessly shifting organizations. Administrative Science Quarterly, 42(1), 1‒34. Cassidy, K. (2007). Tuckman revisited: Proposing a new model of group development for practitioners. Journal of Experiential Education, 29(3), 413‒417. Castellano, S. (2012). Going global. T+D, 10(66), 15. Chu, C. (2013). Participative leadership behavior among business leaders in China. Unpublished doctoral dissertation, University of Minnesota, Minneapolis, MN. Connaughton, S.L., and Shuffler, M. (2007). Multinational and multicultural distributed teams: A review and future agenda. Small Group Research, 38(3), 387‒412.

GARAVAN 9781781954171 PRINT.indd 392

22/09/2017 16:32

IHRD and developing global teams  ­393 DeFrank, R.S., Konopaske, R., and Ivancevich, J.M. (2000). Executive travel stress: Perils of the road warrior. Academy of Management Perspectives, 14(2), 58‒71. Deresky, H. (2013).  International Management: Managing Across Borders and Cultures (8th edition). Boston: Prentice Hall. Dyer, W.G., Dyer, J.H., and Dyer, W.G. (2013).  Team Building: Proven Strategies for Improving Team Performance (5th edition). San Francisco, CA: Jossey-Bass. Ferriera, P., Oliveira, E.R., McLean, G.N., Brito, P., and Nunes, S. (2014). Linking HR Skills and Competences to Organizational and HR Outcomes Through Employee Engagement: Final Report. Alexandria, VA: Society for Human Resource Management (SHRM). Gersick, C.J. (1988). Team and transition in work teams: Toward a new model of group development. Academy of Management Journal, 31, 9–41. Gluesing, J.C., and Gibson, C.B. (2004). Designing and forming global teams. In H.W. Lane, M. Maznevski, M.E. Mendenhall, and J. McNett (eds), The Blackwell Handbook of Global Management: A Guide to Managing Complexity (pp. 199‒226). Malden, MA: Blackwell Publishing. Hertel, G., Geister, S., and Konradt, U. (2005). Managing virtual teams: A review of current empirical research. Human Resource Management Review, 15(1), 69‒95. Hofstede, G., Hofstede, G.J., and Minkov, M. (2010). Cultures and Organizations: Software of the Mind: Intercultural Cooperation and its Importance for Survival (3rd edition). New York: McGraw-Hill. House, R.J., and Javidan, M. (2004). Overview of GLOBE. In R.J. House, P.J. Hanges, M. Javidan, P.W. Dorfman, V. Gupta, and Associates (eds), Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies (pp. 9‒28). Thousand Oaks, CA: Sage Publications. House, R.J., Hanges, P.J., Javidan, M., Dorfman, P.W., Gupta, V., and Associates (eds) (2004). Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Thousand Oaks, CA: Sage Publications. Huang, W.W., Wei, K.K., Watson, R.T., and Tan, B.C.Y. (2003). Supporting a virtual teambuilding with a GSS [group support system]: An empirical investigation. Decision Support Systems, 34(4), 359‒387. Jarvenpaa, S.L., Shaw, T.R., and Staples, D.S. (2004). Toward contextualized theories of trust: The role of trust in global virtual teams. Information Systems Research, 15(3), 250‒267. Javidan, M., Dorfman, P.W., De Luque, M.S., and House, R.J. (2006). In the eye of the beholder: Cross cultural lessons in leadership from Project GLOBE. Academy of Management Perspectives, 20(1), 67‒90. Kim, S., Egan, T.M., and Moon, M. (2014). Managerial coaching efficacy, work-related attitudes, and performance in public organizations: A comparative international study. Review of Public Personnel Administration, 34(3), 237–262. Kohn, A. (1992). No Contest: The Case Against Competition: Why We Lose in Our Race to Win. New York: Houghton Miflin. Kohn, A. (1993). Punished by Rewards: The Trouble With Gold Stars, Incentive Plans, as Praise, and Other Bribes. New York: Houghton Miflin. Li, C.Y. (2006). The Confucian ideal of harmony. Philosophy East and West, 58(4), 563‒603. Lichtman, H.S. (2006). Telepresence, effective visual collaboration and the future of global business at the speed of light. Human Productivity Lab. Retrieved on August 20, 2014, at: http://www.ivci.com/pdf/whitepaper-telepresence-effective-visual-communication.pdf. Littrell, L.N., Salas, E., Hess, K.P., Paley, M., and Riedel, S. (2006). Expatriate preparation: A critical analysis of 25 years of cross-cultural training research. Human Resource Development Review, 5(3), 355‒388. Littrell, R.F. (2012). Critical value dimensions theories: Hofstede – A work in progress. Academy of International Business Insights, 12(4), 3‒6. Manzevski, M.L., and Chudoba, K.M. (2000). Bridging space over time: Global virtual team dynamics and effectiveness. Journal of Organizational Behavior, 11(5), 473‒492. Marquardt, M.J., and Egnel, D.W. (2001). Global Human Resource Development. Englewood Cliffs, NJ: Prentice Hall.

GARAVAN 9781781954171 PRINT.indd 393

22/09/2017 16:32

394  Handbook of international human resource development Martins, L.L., Gilson, L.L., and Maynard, M.T. (2004). Virtual teams: What do we know and where do we go from here? Journal of Management, 30(6), 805‒835. Mathieu, J., Maynard, M.T., Rapp, T., and Gilson, L. (2008). Team effectiveness 1997‒2007: A review of recent advancements and a glimpse into the future. Journal of Management, 34(3), 410‒476. Maznevski, M.L., and DiStefano, J.J. (2000). Global leaders are team players: Developing global leaders through membership on global teams.  Human Resource Management, 39(2‒3), 195‒208. McDonough III, E.F., Kahnb, K.B., and Barczaka, G. (2001). An investigation of the use of global, virtual, and colocated new product development teams. Journal of Product Innovation Management, 18(2), 110‒120. McLean, G.N. (2000). It depends. Advances in Developing Human Resources, (7), 39‒43. McLean, G.N. (2006). Organization Development: Principles, Processes, Performance. San Francisco, CA: Berrett-Koehler. Miller, D. (2003). The stages of group development: A retrospective study of dynamic team processes. Canadian Journal of Administrative Sciences, 20(2), 121–143. Minton-Eversole, T. (2012). Virtual teams used most by global organizations, survey says.  SHRM Online. Retrieved on August 20, 2014, at: http://www.shrm.org/hrdis ciplines/orgempdev/articles/pages/virtualteamsusedmostbyglobalorganizations,surveys ays.aspx. MOW International Research Team. (1987). The Meaning of Working. London: Academic Press. Northouse, P.G. (2013). Leadership: Theory & Practice (6th edition). Thousand Oaks, CA: Sage Publications. Oshri, I., Kotlarsky, J., and Willcocks, L.P. (2007). Global software development: Exploring socialization and face-to-face meetings in distributed strategic projects. Journal of Strategic Information Systems, 16(1), 25‒49. Paradis, A. (2008). Learning and globally dispersed workforces. T+D, 66(2), 60‒67. Paul, S., Seetharaman, P., Samarah, I., and Mykytyn, P.P. (2004). Impact of heterogeneity and collaborative conflict management style on the performance of synchronous global virtual teams. Information & Management, 41(3), 303‒321. Prasad, K., and Akhilesh, K.B. (2002). Global virtual teams: What impacts their design and performance? Team Performance Management, 8(5/6), 102‒112. Roloff, K.S., Woolley, A.W., and Edmondson, A.C. (2011). The contribution of teams to organizational learning. In M. Easterby-Smith, and M. Lyles (eds), Handbook of Organizational Learning and Knowledge Management (pp. 249–272). London: John Wiley & Sons. Rosen, B., Furst, S., and Blackburn, R. (2006). Training for virtual teams: An investigation of current practices and future needs. Human Resource Management, 45(2), 229‒247. Senge, P.M. (2014). The Dance of Change: The Challenges to Sustaining Momentum in a Learning Organization. New York: Crown Publishing Group. Storti, C. (1994).  Cross-cultural Dialogues: Seventy-four Brief Encounters with Cultural Difference. Boston, MA: Intercultural Press. Sundstrom, E., De Meuse, K.P., and Futrell, D. (1990). Work teams: Applications and effectiveness. American Psychologist, 45(2), 120. Taggar, S., and Ellis, R. (2007). The role of leaders in shaping formal team norms. Leadership Quarterly, 18(2), 105‒120. Tannenbaum, S.I., Mathieu, J.E., Salas, E., and Cohen, D. (2012). Teams are changing: Are research and practice evolving fast enough? Industrial and Organizational Psychology, 5(1), 2‒24. Thomas, D.C. (2008). Cross-cultural Management: Essential Concepts. Thousand Oaks, CA: Sage Publications. Tuckman, B.W. (1965). Developmental sequence in small groups. Psychological Bulletin, 63(6), 384‒399. Yamazaki, Y., and Kayes, D.C. (2004). An experiential approach to cross-cultural learning:

GARAVAN 9781781954171 PRINT.indd 394

22/09/2017 16:32

IHRD and developing global teams  ­395 A review and integration of competencies for successful expatriate adaptation. Academy of Management Learning & Education, 3(4), 362‒379. Yorks, L., Marsick, V.J., Kasl, E. and Dechant, K. (2003). Contextualizing team learning: Implications for research and practice. Advances in Developing Human Resources, 5 (1), 103‒117. Zielinski, D. (2012). Group learning. HR Magazine, 57(5), 49‒52. Zolin, R., Hinds, P.J., Fruchter, R., and Levitt, R.E. (2004). Interpersonal trust in cross-functional, geographically distributed work: A longitudinal study. Information and Organization, 14(1), 1‒26.

GARAVAN 9781781954171 PRINT.indd 395

22/09/2017 16:32

19. IHRD, diversity and inclusion Julie Gedro

INTRODUCTION The workplace has become ubiquitously characterized by diversity, which is a characteristic of corporations that has become explored with increasing vigor in management, leadership, human resource development, and other related business and educational disciplines. This chapter is mostly conceptual; it will explore international human resource development’s (IHRD) role in fostering diverse and inclusive workplace environments. It is framed by four fundamental questions, designed to organize the ideas presented, as well as to encourage the access of this chapter as a resource to consider when designing both research projects as well as organizational and practitioner initiatives. From the largest multinational corporations, to the smallest private companies, to the individuals in developing economies whose efforts are funded through micro-finance initiatives, all enterprises are impacted by the globalization, and by shifting demographics in the world of work. While the intent of this chapter would be to imagine the workplace in a broad manner, it mostly restricts its analysis to, as Garavan and Carbery (2012) suggest, the multinational corporation. However, the substance of the suggestions could be extended, at least in spirit, to any employer. It is large employers that face the scrutiny of employment legislation, that have the international considerations of a diversified and distributed workforce, and that have the resources to bring to bear on the challenge and the opportunities of workforce diversity. In the United States, for example, organizational size is quite relevant when it comes to managing diversity. The reason is that Title VII of the Civil Rights Act of 1964, perhaps the most significant piece of employment legislation with respect to employee diversity, applies to employers who have fifteen or more employees (EEOC, 2013). However, the fundamental notion guiding this chapter is one of diversity and inclusion orientation, which includes diversity management, but extends farther and deeper into the consciousness of individuals, teams, groups, systems, and organizations. When an organization is focused strictly on compliance with existing employment laws that prohibit discrimination based upon pre-defined categories without a corresponding IHRD effort that seeks to provide training, education and awareness to break down barriers of fear, preju396

GARAVAN 9781781954171 PRINT.indd 396

22/09/2017 16:32

IHRD, diversity and inclusion  ­397 dice, stereotyping, and the marginalization and subordination that are likely to result (however subtly and tacitly), that restriction has a limiting effect on how richly the organization can develop as a truly diverse and inclusive one. The main purpose of this chapter is to explore, with ideas that are current, relevant, and expansive: (1) What is workplace diversity and inclusion? How are these separate but intertwined constructs? (2) How can the construct of corporate social performance provide a framework to understand the necessity for IHRD scholars and practitioners to help provide organizational leaders with knowledge, skills, and dispositions to successfully lead and manage diverse and inclusive organizations? (3) How can the contested HRD perspectives of learning versus performance reconcile within this exploration of diversity and inclusion? (4) How does scholarship and practice in the field of IHRD respond to organizational unevenness and exclusion, and contribute in both organizational efficiencies and effectiveness while concurrently working for social justice through workplace diversity and inclusion? The chapter is informed by selected scholarship of workplace diversity, and it is inspired by the concept of inclusion. Diversity refers to the characteristic, or composition of an organization. Inclusion refers to the response of the organization to its diversity. For the purposes of this chapter, the constructs of diversity and inclusion are intertwined. To be even clearer, an organization could have a diverse workforce and it could concurrently have a non-inclusive culture. Minorities within that illustrative organization, in a non-inclusive culture, feel marginalized and limited. However, a diverse environment characterized by an inclusive culture seeks to recruit, select and retain a diverse employee base and it strives to create a culture in which employees of all demographics sense that they are welcomed and valued. Roberson (2006) noted that diversity focuses on workforce heterogeneity, and that inclusion focuses on “employee involvement and the integration of diversity into organizational systems and processes” (Roberson, 2006, p. 228). To do justice to the expanse of scholarship on workplace diversity, an entire volume would be necessary. Therefore, a selection of peer-reviewed literature is used, with “international workplace diversity,” “globalization and workplace diversity,” and “workplace diversity training and development” drawing upon management databases ProQuest and EBSCO Host. Additionally, selected texts and websites related to workplace diversity are consulted.

GARAVAN 9781781954171 PRINT.indd 397

22/09/2017 16:32

398  Handbook of international human resource development

UNDERSTANDING THE CONCEPTS OF DIVERSITY AND INCLUSION In order to situate this exploration, a few definitions of “diversity” will be offered. In very general terms, “diversity is often discussed as a general concept” (SHRM, 2009, p. 10), which manifests as the intentional fostering of broad heterogeneity in the workplace. Sultana et al. (2013) stated that even though ‘diversity’ has become a term with varied meanings and definitions, it has “a necessity for managers to understand the depth of the cultural diversity and to be able to implement strategies to fit individual identities within the collective group to ensure a harmonious relationship in organizational framework to achieve the organizational goal” (Sultana et al., 2013, p. 133). Taylor Cox (2001, p. 3) has defined diversity as “the variation of social and cultural identities among people existing together in a defined employment or market setting.” The Society for Human Resource Management (SHRM) emphasizes the need for the capable management of workplace diversity: That world, increasingly, is disappearing. Today, just as national boundaries are eroding in the “global village,” so are cultural and gender barriers weakening in the global workforce. The concept of workforce Diversity is no longer an abstraction; it is part of everyday life in many countries in the developed world. Driven by a need to compensate for talent shortages – and compete in an increasingly diverse marketplace companies are extending their recruiting and promotion efforts to groups that traditionally were under-represented or not present at all. (SHRM, 2009, p. 5)

R. Roosevelt Thomas, Jr. was one of the first diversity scholars to problematize the over-use of the term “diversity,” and to hint that the term has become clichéd, and even “code:” Every decade or so, people who concern themselves with the vigor of US business organizations fasten onto a particular word or phrase that surfaces from a general, wide-ranging issue. For a time, the buzzword is extra hot. Before long, the word begins to take on a symbolic meaning: It serves as a simple verbal code for the complex problem from which it originated, but no one is really sure any longer what it actually means. (SHRM, 2009, p. 11)

Branine (2011) used a garden metaphor to highlight the fact that diversity does not mean assimilation, and that each employee deserves to be treated with respect, inclusion, and with some reverence for his or her individuality: [M]anaging diversity in any organization in any country may be described as a process of looking after a garden of different types of flowering plants. The

GARAVAN 9781781954171 PRINT.indd 398

22/09/2017 16:32

IHRD, diversity and inclusion  ­399 issue is not so much the existence of many different types of plants, or many different types of employees in an organization, but rather looking after them properly and effectively. Different types of plant require different types and amounts of fertilizer and water, sunlight, warmth, etc. Similarly, different employees have different needs. Managing diversity involves looking after every individual employee just like looking after every plant in the garden. This process requires managing change effectively and adapting to changes in the workforce to meet organizational objectives. (Branine, 2011, p. 567)

Categories of ‘difference’ such as gender, race, age, ethnicity, sexual orientation and ability are useful as fundamental organizing categories of diversity. These types of dimensions are considered to be primary, that is, they are mostly fixed and visible (Harvey and Allard, 2009). Secondary dimensions are more fluid, and can change over the life course. These dimensions include income, religion, education, communication style, and organizational role (Harvey and Allard, 2009). It is however, not only impractical, it is impossible, for HR professionals and scholars to anticipate and then codify every single type of characteristic that a person brings to the workplace. People are complex. However, human complexity is not a rationale for not making an effort to identify some broad, perhaps sustainable, categories of diversity in order to have a framework upon which to anchor IHRD efforts. Alfred and Chlup (2010) noted that although there are those who hold a view that diversity should not be categorized according to characteristics such as race, class, gender and sexual orientation (as examples), they feel that the term ‘diversity’ must be troubled in order to find out “what it means for individuals and groups most affected by the impact of various dimensions of diversity” (Alfred and Chlup, 2010, p. 335). In other words, because different types of diversity result in different types of treatment or marginalization, it is important to retain specific categories of diversity in order to interrogate their effects. Repečkienė, Kvedaraitė and Jankauskienė (2011) note that although “different authors declare varying opinions on the notion and dimensions of cultural diversity, however, they are unanimous about the benefit of cultural diversity management obtained through possible synergic effect: promotion of cooperation is promoted that ensures international success, new markets (segments) are occupied and better relationships are maintained with customers and employees” (Repečkienė, Kvedaraitė and Jankauskienė, 2011, p. 884). Back in 1990, Swanson predicted the competitive environment that resulted from globalization (Swanson, 1990, p. 106): The global economy does not allow cultural differences to justify poor performance. The global economy does not allow managers to persuade local or

GARAVAN 9781781954171 PRINT.indd 399

22/09/2017 16:32

400  Handbook of international human resource development national politicians to intercede on their behalf as they have in the past. The global economy does not allow managers to profit as easily from their own below-average performances. In the global economy, the total quality movement, with its critical HRD component, has the opportunity to put out of business competitors who unjustly exploit the spirit and labor of workers.

Hite and McDonald (2010) offered a substantive rationale for the link between diversity and HRD. HRD resonates with diversity because of its commitment to developing people and organizations. This commitment extends into a response to “societal needs” (Hite and McDonald, 2010, p. 284) as well as helping develop proactive interventions and serving as an advocate for diversity research and practice. HRD, Hite and McDonald observed, is directly involved with diversity initiatives through diversity training, organizational development, diversity cultural change efforts, and career development activities for under-represented groups. Diversity Management in an International Context Diversity management rests upon the practice, played out in corporations; of dominant in-groups which have historical presence and visibility, and whose identity is implicitly established as what is normal and natural. Thomas and Ely (1996) have offered a paradigm that consists of three perspectives for diversity initiatives. The first, known as ‘discrimination and fairness,’ represents diversity initiatives as motivated by compliance with employment laws that prohibit discrimination based upon certain categor­ ies, or classes, of people. This perspective attempts to “ensure justice and eliminate discrimination” (Ely and Thomas, 2001, p. 248). This represents instrumentality, the notion of taking an action because of the material benefit of that action. The second, known as ‘access and legitimacy,’ is based upon the notion of diversity as increasing an organization’s appeal for its prospective employees, current employees, and target market. This perspective seeks to “gain access to and legitimacy with diverse markets and clients” (Ely and Thomas, 2001, p. 248). This is also instrumentalist in nature. Both of these perspectives place a limited value on cultural identity. The third, known as learning and effectiveness, is intended to value the diversity within its employee base, as it seeks to “inform and enhance core work and work processes” (Ely and Thomas, 2001, p. 248). The learning and effectiveness perspective is inspired by an authentic desire to assess the potential of people based upon merit, and to value and respect people for who they are, and for their talents, skills, abilities and contributions.

GARAVAN 9781781954171 PRINT.indd 400

22/09/2017 16:32

IHRD, diversity and inclusion  ­401 Minorities: race, sexual orientation, diversity management, and discrimination The Society for Human Resource Management’s Global Diversity and Inclusion Report (SHRM, 2009, p. 13) identified seven groups to which its survey and research participants directed their diversity and inclusion efforts: women; ethnic minorities; people over the age of 50; individuals with disabilities, religious minorities; and acknowledged gays, lesbians, bisexuals, and transgenders; and people who hold unpopular social or political views. The term ‘minority’ must be problematized, in order to get a firm grasp on the issues of diversity in an international context. What constitutes a ‘minority?’ There are quantitative measures that indicate that sub-groups are minorities, but the absolute notion of ‘minority’ is context-dependent. Women, for example, might be considered a minority, because they comprise significantly fewer positions of senior leadership in organizations. However, in terms of population (that is, number of men versus number of women), whether or not women are a minority depends upon the location of analysis. For example, in healthcare, are women minorities, or are they minorities in the professional of healthcare because they are typically found in subordinate (nurses, instead of doctors) positions? Are women minorities in business, because they tend to be in administrative, supervisory and (perhaps) middle management positions, rather than senior executive positions? Sexual minorities present yet another dimension of ‘minority,’ one less visible than gender minor­ities (women). Sexual minorities have the ‘dubious luxury’ (Gedro, 2010) of disclosing and confirming their sexual minority status, but they also can operate from the confines of a closet. This type of minority status within an organization presents a particular set of challenges due to this notion, of the closet. There are minorities who are disabled, such as recovered alcoholics (Gedro, Mercer and Iodice, 2012), who might face potential discrimination and stigmatization were they to self-disclose. These are but a few examples, for illustration, of the notion of ‘minority’ and the point is that it is not a simple construct. It is context-dependent, there are different types of minorities, and different types of minorities face different sets of risks, depending upon the inclusiveness of the workplace culture. Minorities, or under-represented groups, are the out-group, the target of diversity efforts. For example, in the United States (as well as Europe and other countries), whiteness is natural, normal, and dominant, as is heterosexuality. Critical race theory (CRT) represents a way of understanding the presumed naturalness of whiteness (Alfred and Chlup, 2010). There are four tenets of CRT. First, racism is “seen as normal and is part of the social fabric of a nation” (Alfred and Chlup, 2010, p. 339). Second, the majority group (whites) supports the advancement of people of color

GARAVAN 9781781954171 PRINT.indd 401

22/09/2017 16:32

402  Handbook of international human resource development when it advances their own interests. Third, racism is a social construction, whose categories change as society invents, or re-invents them. Finally, liberalism and its promotion of ‘colorblindness’ are rejected as a way of addressing race issues (Alfred and Chlup, 2010). Queer theory, another perspective that is relevant to this problematizing of categories, as well as the interrogation of dominance, posits that identity categories and labels like heterosexual, homosexual, and bisexual operate as “regulatory mechanisms of the dominant culture” (Chapman and Gedro, 2009, p. 97). Linking IHRD and IHRM for Effective Diversity Management It is difficult to imagine an organizational imperative that provides more fertile ground for the efforts of IHRM and IHRD to be drawn into partnership together. Diversity and inclusion necessitates both a focus on compliance to legal and policy matters affected equal employment and anti-discrimination, which are IHRM matters. In order to develop organizations that have reached the learning and effectiveness stage (Ely and Thomas, 1996) of diversity and inclusion, IHRD professionals have the opportunity to contribute with research and practice through diversity training and education. By partnering, whether the partnership is structural, functional, or conceptual, IHRM and IHRD can leverage each other’s contributions to create compliant practices, and engaged employees. It is possible to design and conduct diversity ‘training,’ but the results of such training might produce unpredictable and undesirable consequences. The issue is the extent to which diversity training flows in an authentic way from the leadership ethos of the organization (Cox, 2001). Such commitment is, without question, one of the most important facets of successful workplace diversity (Wentling and Palma-Rivas, 1998). Training is behaviorally-based, whereas education provides people with an opportunity to learn about ‘difference’ in a way that is richer, and less compliance-focused. In today’s business environment, it is imperative that managers are culturally sensitive, and that they develop dispositions of “tolerance, persistence, flexibility, and self-esteem” while embarking on the “psychological odyssey of self-questioning and self-awareness” (Ramburuth and Welch, 2005, pp. 7‒8). Perhaps most important, with respect to considering IHRD and diversity, is a set of principles that can guide initiatives to create and maintain truly inclusive environments. By tethering an organization to principles, rather than investing resources only in an attempt to anticipate categories of ‘difference’ to which IHRM and IHRD respond with compliance and policy-laden projects to address such ‘difference,’ it might be worthwhile to consider a deeper framework,

GARAVAN 9781781954171 PRINT.indd 402

22/09/2017 16:32

IHRD, diversity and inclusion  ­403 a diversity and inclusion mentality, if you will, that guides rather than prescribes. It is only when diversity and inclusion are grounded in a culture that seeks to learn, to include, to improve the way that it values people as it works to achieve organizational or corporate goals and objectives, is diversity and inclusion a sustainable and resilient proposition (Ely and Thomas, 2001). Perhaps most important is the strong foundation of mission of an organization that all employees are expected to embrace. However, it is possible for the heterogeneity, creativity, and richness that springs forth from an inclusive culture, to support and enhance an organizational mission. These characteristics are mutually supportive. The SHRM report (SHRM, 2009) indicated that across a number of countries, diversity initiatives are most heavily operationalized as the recruitment and the development of women. Certainly, these efforts are warranted. It is when leaders are authentic about their conviction that opportunities await anyone qualified and motivated, regardless of demographic, that they can then be honest about how they determine who advances and who is provided with opportunities in the organization, including the opportunity to join the organization. In other words, when leaders and other decision makers and influencers internalize and understand what diversity means, how it operates as the fabric of dominance and hegemony, when they are educated, aware, and emboldened to act in ways that model inclusivity, when they divest themselves of the moral blind spots around the impact of implicitly heternormative, or gendered, or racialized (as examples) behavior, they can, without guilt or self-consciousness, offer or withhold opportunities based upon a truly inclusive and merit-based system. If for example, a minority person finds it difficult to obtain upward mobility or something else that represents a desired state in an organization, having a culture of diversity and inclusion and committed leaders, means that if that person is denied such an opportunity, there is little to no justification for the notion that they were denied because of their race, gender, sexual orientation, ethnicity, religion, or other dimension of identity considered ‘diverse.’ Admittedly, this is an ideal. There is evidence, both on the positive and the negative side that supports the idea that the investment in diversity training and education, and the commitment to creating an organization that embraces diversity, pays off beyond the initial outlay of resources invested in these efforts. Having a heterogeneous employee base does not inevitably lead to the positive consequences such as productivity, profitability, quality, excellent customer service, employee engagement, and overall corporate performance. Heterogeneity brings with it consequences of conflict, marginalization, discrimination, bullying, and harassment. Therefore, diversity is insufficient to characterize the aspiration intended by this chapter. It is when

GARAVAN 9781781954171 PRINT.indd 403

22/09/2017 16:32

404  Handbook of international human resource development people feel included, welcomed, respected, and valued for the perspectives they bring, the talents and skills they demonstrate, and the particular worldview that they possess and offer to the benefit of the organization, that diversity is an exciting, positive, desirable characteristic. Pieterse, Knippenberg, and Dierendonck (2013, p. 782) noted that “the performance benefits of (cultural) diversity arise to the extent that diversity engenders information elaboration – that is, the exchange, discussion, and integration of task-relevant information and perspectives.” Diversity training is, arguably, insufficient as a means of achieving the kind of deep inclusion that is imagined here. Holladay and Quinones (2005, p. 530) examined reactions to diversity training, and identified three “fundamental goals” of diversity training programs. The first goal is to improve work performance among all employees, achieved by making employees aware of bias and discrimination. The second is improving work relationships, which is achieved through having employees acknowledge their own biases and prejudices, and to identify strategies for managing such biases. The third goal is to improve individual performance, which is achieved through understanding how diversity can be an asset. Bierema (2010, p. 566) noted that “diversity training is promoted as both a resolution to problematic workforce relations and as a strategy to become more diversified in terms of customer and geography. In spite of this commitment, diversity programs rarely challenge the status quo.” The construct of inclusion should be drawn explicitly into a discussion of diversity, because “inclusion goes beyond diversity management” (Sabharwal, 2014, p. 202) because it enables employees to feel valued for their individuality and at the same time, invites and encourages them to engage in the organization. Green and Kalev (2008, in Nishii, 2013) noted that diversity management reduces bias in key human resource decision-making, yet diversity management does not systematically remove the sources of discrimination. Allport (1954, in Nishii, 2013), explained how inclusion means that people are roughly equal in status, that they have an opportunity to get to know each other, and that there is participative decision-making. Just as diversity requires intentionality, inclusion requires intentionality. Stereotypes, prejudices and biases are persistent and often subtle phenomena that must be cultivated, monitored and maintained. Inclusion represents an aspect of diversity management that warrants further research. It could be one of the diversity topics that the field of IHRD, which lacks substantive research into diversity topics (Bierema, 2010), explores in the future. Over twenty years ago, Cox (1991) stressed the need for the successful management of workforce diversity, providing data around changing workforce demographics and the imperative for organizational leadership and management to respond to these changes with thoughtful and proac-

GARAVAN 9781781954171 PRINT.indd 404

22/09/2017 16:32

IHRD, diversity and inclusion  ­405 tive measures that create inclusive workplace environments. Cox not only emphasized the corporate social responsibility dimension of diversity and inclusion, he also identified six key arguments – in effect, a business case – for diversity management. These arguments are: (1) Cost: Increasing workforce diversity necessitates strategic workforce diversity management; the cost of “a poor job of integrating workers” (Cox, 1991, p. 47) will increase; (2) Resource-acquisition: Companies who develop strong reputations for diversity and inclusiveness reap the advantages of being able to attract the talent that they need; because the labor pool is becoming increasingly diverse, the ability to recruit and retain women and minorities will become more and more important; (3) Marketing: Multinational corporations benefit from the insights and cultural sensitivities of a diverse pool of employees, who bring their perspectives to bear on all phases of marketing efforts; (4) Creativity: When diverse perspectives are valued, and when less emphasis is placed on past corporate norms, creativity is likely to increase; (5) Problem-solving argument: The results of an inclusive decision-making process that welcomes diverse perspectives are potentially stronger than those from homogenous perspectives; (6) System flexibility: The increased fluidity of a diverse workplace environment results in a greater flexibility to respond to changes in the environment. This results in increased speed and decreased cost.

CHALLENGES FOR IHRD OF DIVERSITY AND INCLUSION The construct of diversity presents a fertile context for Ruona and Gibson’s (2004) description of the convergence of IHRM, IHRD, and OD. Diversity, or the management of diversity, or the creation of a diverse and inclusive culture, requires the wisdom and expertise of three of these fields: HRM, which recruits, hires, compensates, performance manages; HRD, which provides hard and soft skills training (including diversity training), and OD, which guides systems toward change necessary to embrace and leverage ‘difference.’ All three fields are necessary with respect to diversity; one cannot thrive in isolation. “Even in countries with diverse workforces, the members of demographically dominant groups tend to have more influence and face fewer barriers to recruitment and advancement than the newcomers” (SHRM, 2009, p. 5).

GARAVAN 9781781954171 PRINT.indd 405

22/09/2017 16:32

406  Handbook of international human resource development The Psychology of Diversity Psychology helps explain the relevance of a continued examination of diversity in IHRD, because it provides a larger context to appreciate the friction that feels, perhaps, inevitable when people are arranged in organ­izational structures, and the intersection of changing demographics, worldwide connection through technology and the global movement of capital, and the laws that prohibit discrimination in employment practices against people who fall into particular categories. Marsella (2009) explains that diversity is a source of conflict, as well as a source of survival. Drawing upon evolutionary psychology, Marsella notes that “the human brain’s response to differences is typically arousal, alarm, and sometimes attack” (Marsella, 2009, p. 121) and the resulting problems of perception provide an eye-opening yet realistic insight into the challenges – the real challenges those of human perception – that IHRD professionals and organizational leaders face when designing initiatives to transform organizational culture: ● ●

● ●

● ● ● ● ●

Perception of danger to survival, identity, well-being; Perception of ‘Other’ as evil, dangerous, threatening; Perception of the situation as unjust, unequal, unfair, humiliating, punishing; Perception of competition for limited resources; Perception of self as self-righteous, moral, justified, and ‘good’ by virtue of religion, history, identity; Perception that normal pathways for resolution may no longer be available accessible, and/or acceptable; Availability of military or police strength and other means to engage in violence and war; Availability of media for hyping positions through lies, deception, and delusions; and Availability of ‘people’ willing to fan conflicts for personal, economic and political gain (Marsella, 2009, p. 121).

Lest this list of perceptual problems seem overly dramatic, and not directly applicable to workplace environments across the world, with few exceptions (the reference to military and police strength, perhaps the only one that would be removed from this list for such non-applicability), these problems exist in the workplace. Examples explored in the IHRD and management literature include the backlash and blowback that LGBT diversity initiatives face by straight majoritarians who feel that LGBT people are being unjustly privileged (Hill, 2009), resistance to diversity

GARAVAN 9781781954171 PRINT.indd 406

22/09/2017 16:32

IHRD, diversity and inclusion  ­407 (Bierema, 2010), and perception that diversity programs are a direct relation of affirmative action programs, which inevitably result in reverse discrimination, provide overt and perceptible demonstration that workplace diversity and its accompanying HR initiatives, are not a simple proposition whose efforts are welcomed and embraced, and internalized by all. The challenge of creating deep and authentic diversity is no reason to withhold the resources that are needed to do so. Difficult does not make it right to ignore. Marsella (2009) explains the psychology of diversity, which provides a helpful lens to understand why diversity presents such a persistently challenging endeavor. Diversity, he says, is a source of survival. People have different types of reactions to ‘difference.’ Although it is helpful to study the experiences and the challenges and opportunities of different sets of people in order to acquire insights about those experience, and thus deepen one’s sense of empathy and awareness. However, ultimately those categories may or may not remain stable over time, which means that the sands shift underneath the ground of diversity efforts that are attached to those categories. Rather, in order to create a lasting and palpably inclusive organizational culture, the organization should embrace training and education designed to encourage, or perhaps even set the expectation, that organizational members are inquisitive and are open and are excited about working with those who come from different backgrounds, or have different dialects, or have different types of family structures than they do. It is when someone has an orientation that seeks, in a respectful and an authentic way, to learn about those who have different characteristics than they, that categories become less important than the disposition that someone has, toward learning and engaging with another (Paul, Meyskens, and Robbins, 2011). Moral Conventions as a Guidepost There are moral conventions to which, one would hope, any IHRD practitioner or scholar could agree: people deserve truth, and justice, and opportunity. When talking, writing, researching, teaching, and training diversity and inclusion, language becomes critical. For the sake of conceptual clarity, there are two frameworks that organize this discussion. First, of utmost importance is the way that diversity and difference are discussed. The use of the term ‘tolerance’ is patently unacceptable, because implicit in the term is the suggestion that there is something unpleasant about the subject of the toleration. Therefore, it is strongly suggested, if not implored, that IHRD scholars and practitioners refrain from using the term “tolerance” in the same sentence as a minority group (For example:

GARAVAN 9781781954171 PRINT.indd 407

22/09/2017 16:32

408  Handbook of international human resource development “We at Company X are committed to tolerance of LGBT people”). Rather, the term ‘inclusion’ signals that minorities, or a particular sub-group of minorities, are included in the organization. “Inclusion helps to ensure that employees from diverse backgrounds are able to contribute, remain with the company and flourish” (SHRM, 2009, p. 7). This sends a particular message of intentionality, of respect, and of purpose. Second, although the thrust of this chapter has advocated for individuals, groups, systems, and organizations to avoid fixating upon rigid categories (particularly binaries such as gay/straight, or black/white) because of the limiting nature of so doing, in order to exemplify inclusion and all that inclusion entails, it is a worthy investment for IHRD professionals to learn and then keep abreast of the current nomenclature preferred by minority sub-groups. For example, while at one time earlier in their history, LGBT people were referred to as ‘homosexuals,’ that term is now outdated, and LGBT is an umbrella term that is generally and contemporarily accepted to refer to sexual minorities. (Please note that this chapter has provided examples of outdated language, versus current language and as such, risks dating itself as future readers access this chapter. However, examples are necessary, even if they date themselves in the future, in order to provide illustration.) Power Relations and Structures The challenges that persist are related to the underlying mindsets, which then manifest structurally, politically, behaviorally, and then, culturally within organizations. It is an imperative, if an organization is to achieve diversity and inclusion that education occurs around power relations and structures that are often beneath what is readily apparent. Even though, for example, women are the targets of diversity recruitment efforts all over the world (SHRM, 2009), women still lag behind men in their access to senior leadership positions. Kilian, Hukai, and McCarty (2005) noted that the main reasons for this include the “lack of mentors and role models; exclusion from informal networks of communications; stereotyping of roles and abilities; and lack of significant line experience, visible and challenging assignments; and commitment to personal and family responsibil­ ities” (Kilian, Hukai, and McCarty, 2005, p. 156). Racism, homophobia, ableism, lookism, and even social class (see McNamee and Miller, 2009) create the conditions by which diversity persists as an organizing framework of exclusion (Bierema, 2010; Gedro, Cervero, and Johnson-Bailey, 2004). In order to negotiate the tacit discrimination that persists in organ­ izations, despite diversity initiatives, minorities tend to have a ‘sixth sense’ when it comes to discerning the inclusivity of an organization. Sue (2010) noted that African Americans, for example, look for ‘diversity cues’ such

GARAVAN 9781781954171 PRINT.indd 408

22/09/2017 16:32

IHRD, diversity and inclusion  ­409 as the number of minority members, and the diversity philosophy communicated through corporate publications such as brochures. Gedro, Cervero, and Johnson-Bailey (2004) learned that lesbians in corporate America ‘pre-screen’ an employer, group or work situation to determine the receptivity toward lesbianism. This is a survival instinct that lesbians have internalized. The unevenness of protections for sexual minorities provides the larger explanation for this ‘pre-screening,’ and it is certainly not limited to those in the US. Gedro et al. (2013) explained the complex human rights situation for sexual minorities across the world, confounded by the variation in anti-discrimination laws as well as the variance in receptivity to them. Proactive Engagement of IHRD Moral neutrality is necessary when creating and sustaining deeply inclusive, heterogeneous workplace cultures. Because of the breadth of types of ‘difference’ that can exist among employees, and among prospective employees, IHRD practitioners would benefit from understanding the reasons for this unevenness, in order that that may respond to these variances. A company or organization can be diverse, but that does not necessarily mean that it is inclusive. There numbers of ‘minorities’ (defined broadly) could be plentiful, and those minorities could be stifled in jobs that do not reflect their true ability to contribute. Moreover, the environment for minorities could be difficult and segregating. It is when an organization is diverse and inclusive, that it rises to the level of moral, ethical, sustainable, financial, operational, and reputational excellence. IHRD has an obligation to engage in the most active way, through research and through practice, in serving to help organizations achieve such excellence. Although the business case for diversity provides the primary rationale, and the justice and fairness dimension is also a reason, it is the legal compliance dimension that represents the most significant reason that companies embrace diversity and inclusion efforts. In the SHRM Diversity and Inclusion Report (SHRM, 2009), 67 percent of companies surveyed (80 percent from Western Europe, 66 percent from the Asia-Pacific, and 58 percent from North America) indicate that they monitor legislative developments that could affect their diversity and inclusion efforts. There is an opportunity for IHRD to help inform IHRM research and practice, and to work to blur the lines that have traditionally existed between the fields (Ruona and Gibson, 2004; Metcalfe and Rees, 2005). Diversity and inclusion provides opportunities for employees to feel engaged, and for the organization to benefit in multiple ways from that engagement.

GARAVAN 9781781954171 PRINT.indd 409

22/09/2017 16:32

410  Handbook of international human resource development

CORPORATE SOCIAL PERFORMANCE AS A MEANS OF RECONCILING IHRD PERSPECTIVES A long-standing debate within the field of IHRD exists between scholars who posit that the field should focus on performance (Swanson, 1995) versus those who argue that the field should take a critical approach by expanding the field’s efforts, to focus not strictly on performance, but on learning and development of the individual (Bierema, 2010). The construct of corporate social performance reconciles these dichotomous perspectives, as it concurrently suggests that by taking into account the needs and interests of stakeholders, the firm achieves its quantitative, objective performance targets. When thinking about employee diversity, it is necessary to think about the broader construct under which, as a business consideration, it falls. This construct is that of corporate social performance, which takes into account an array of considerations that shine bright lights on not just profitability, but also, the extent to which a corporation thoughtfully engages in its entire ecosystem. An underpinning concept of corporate social performance is the notion of the stakeholder (Paul, Meyskens, and Robbins, 2011). Employees (both past, current and prospective) customers, shareholders, suppliers, competitors, and the environment form this ecosystem, and they are the parties who have a ‘stake’ in the actions of the corporation. They have vested interests, and they represent a variety of such interests. Employees, for example, might certainly care about corporate profits because inherent in profitability might be the operating assumption that a firm’s financial performance implies continued employment for employees; it might also have a financial dimension for employees who are vested in employee stock purchase plans or other financial arrangements in which firm performances translates into employee financial gain. Thinking about, then, corporate social performance necessitates a close look at how a firm treats its employees. This close look must take into account the way the organ­ ization fosters a sense of welcoming, a sense of inclusion, for employees who belong to historically under-represented groups, and also, employees who do not neatly fall into demographic ‘norms’ within the organization. Dennis et al. (2008) identified four dimensions of corporate social performance: (1) The community, which takes into account the corporation’s philanthropic contributions; (2) The environment, which considers efforts by the corporation to be mindful of the environmental impact (pollution, global warming, pollution) that it has, and to take steps to minimize its environmental impacts; (3) Employee diversity, which measures a corporation’s commitment to hiring, training, developing, evaluating and promotion policies as they impact women and minorities; and (4) Employee relations,

GARAVAN 9781781954171 PRINT.indd 410

22/09/2017 16:32

IHRD, diversity and inclusion  ­411 which examines the extent to which a company engages in socially responsible practices such as innovative employee engagement and profit sharing. Workplaces across the world which are committed to diverse and inclusive organizational cultures have to invest resources that might otherwise be allocated to other profit-seeking behaviors. However, the investment of resources toward diversity and inclusion efforts serves to benefit stockholders as well as stakeholders. In order to create and sustain corporations and organizations that are diverse and inclusive, there must be a commitment from the top leadership to invest the time, talent, resources, and influence necessary. These benefits include greater creativity, innovation, enhanced reputation, and higher employee commitment and engagement. Although a distinction between human resource management, human resource development, and organizational development are necessary because those distinctions arise from the historical trajectory of each discipline (Ruona and Gibson, 2004), those boundaries between each become less demarcated, as they are necessarily intertwined with respect to workplace diversity.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE Future research could include examining the link between the extent to which companies have entered into the ‘learning and effectiveness’ dimension of diversity as set forth by Thomas and Ely (1996) and the extent to which they are engaged in employment litigation or other forms of legal issues such as charges of employment discrimination and OFCCP problems. Intuitively, it might seem that the relationship is inverse (the higher the learning and effectiveness, the lower the legal problems) but this merits further exploration. SHRM (2009, p. 13) identified four types of explanatory factors for organizational diversity and inclusion efforts: The drivers of Diversity fall into four main categories. For a minority of companies, Diversity is mainly about fairness and justice – ensuring an equal chance for members of disadvantaged groups. For others – and these are the majority – increasing Diversity is a way to guarantee a large enough talent pool in the future. Still other firms are interested in mirroring the customer base and thereby improving understanding of customers, and delivering decisions that are based on a broader palette of considerations. A fourth group cites legal compliance. Naturally, these categories are not mutually exclusive; companies typically have multiple reasons for promoting Diversity and Inclusion.

With respect to providing training and education around diversity, where is the boundary between identifying and proselytizing a set of values

GARAVAN 9781781954171 PRINT.indd 411

22/09/2017 16:32

412  Handbook of international human resource development that employees or other stakeholders are expected to internalize, and granting people the freedom to self-select their values? Is there a universal set of values regarding human dignity that could be agreed upon? Again, it is not possible to create a ‘schedule’ of diversity, or a toolkit, that IHRD practitioners could consult when designing programs. Perhaps there is? This might even be a debate. To what extent is it the business, for example, of IHRD to change the cultures of countries that devalue women? What about those that demonize LGBT people? Where is that line? This represents one of the most significant implications for IHRD scholarship, to examine these questions, to consider where the boundaries are, and then to develop resources and conduct research that explores these issues. Table 19.1 illustrates the opportunities for IHRD scholarship and practice to enhance current HR diversity and inclusion related efforts, by linking and by enhancing these activities with learning, and creating cultures of deep diversity and inclusion, rather than surface, compliance and profit-seeking rationales only. The table is informed by the work of Cox (2001), Ely and Thomas (2001), Thomas and Ely (1996), and SHRM (2009). The dimensions of diversity offered by the discrimination and fairness paradigm, and the access and legitimacy paradigm (Thomas and Ely, 1996), are positioned alongside the corresponding diversity and inclusion HR activities described by SHRM (2009). In short, using the ‘business case’ for diversity has the potential to not only incite backlash from majoritarian, in-group members, it can also result in discrimination unless there is a corresponding emphasis on inclusion (Scroggins and Benson, 2010). This chapter’s relevance extends beyond IHRD scholars and practitioners directly interested and involved in researching, designing and delivering diversity training programs, and organizational development initiatives aimed at creative diverse and inclusive cultures. To be sure, it is relevant for those directly involved. However, it has provided an overview of the linkages between a stakeholder model of the firm, corporate social performance, and the increasing complexity of workforce demographics, with the intention of providing insights around the business case, which represents rationalist instrumentality, as well as the social justice case, which represents a more authentic, credible, sustainable case for diversity and inclusion. Anyone who practices, researches, or teaches IHRD is impacted by diversity. How do HRD researchers and practitioners engage in research and practice that helps to create not only diverse organizations, but also, inclusive ones? Diversity, as this chapter has explained, is focused on the HR decisions, such as recruitment, selection, promotion, termination, and those decisions take into account the demographics of those affected by the decisions. Inclusion requires mindful cultivation of organizational environments in

GARAVAN 9781781954171 PRINT.indd 412

22/09/2017 16:32

IHRD, diversity and inclusion  ­413 Table 19.1 Overview of HR diversity and inclusion activities, and proposed IHRD interventions Diversity and Inclusion Paradigm

HR Activity

Results and Comments

Discrimination  and Fairness (legal compliance) Access and Legitimacy  (business enhancement) Discrimination  and Fairness (legal compliance) Access and Legitimacy  (business enhancement) Discrimination  and Fairness (legal compliance) Access and Legitimacy  (business enhancement) Discrimination  and Fairness (legal compliance) Access and Legitimacy  (business enhancement) Discrimination  and Fairness (legal compliance) Access and Legitimacy  (business enhancement)

Systematically widening  recruitment pools to tap new sources of talent

Critique: Simply  increasing the number of hires from an underrepresented group can result in backlash (Ely and Thomas, 2001) Mandatory diversity  training produces unpredictable results (Holladay and Quinones, 2005)

Employee training to  enhance respect for cultural differences

Employee training and  development to improve the advancement potential of minorities

Mandatory diversity  training produces unpredictable results

Offering language  courses to increase awareness of other cultures

HRD can serve to  provide these educational opportunities

Setting benchmarks and  goals for managers to ensure diversity on their staffs

Mandatory procedures  without a corresponding educational component results in a temporary ‘fix’ of a representation by minorities

Source:  Adapted from Cox (2001), Thomas and Ely (1996), Ely and Thomas (2001), and the Society for Human Resource Management Diversity and Inclusion Report (2009).

which all employees feel part of the organization and all employees are respected and valued, and not pressured to assimilate their identities into a mainstream, majoritarian, ideal. Ultimately, the most effective measure of the success of our efforts in the field of IHRD, is the extent to which the workplace has become a

GARAVAN 9781781954171 PRINT.indd 413

22/09/2017 16:32

414  Handbook of international human resource development meritocracy rather than a recreation of social inequities omnipresent in the larger milieu. The extent to which an organization engages in efforts to manage an inclusive workforce because of external pressures, policies, rules and regulations raises a level of caution about how ultimately effective those efforts will be. Admittedly, this chapter has been permeated with idealism. There are hurdles, inherent in several ways, to achieving workplaces that value diversity that resist the shortcuts of instrumentality, compliance, assimilation, and pre-determined categories, or labels, of types of people. However, idealism derives from ‘ideal,’ and the ­underlying ideals that organize these thoughts is the ideals of human freedom and dignity. This is worth the efforts of IHRD professionals.

CONCLUSION This chapter has brought together several areas of contestation within the IHRD field through its discussion of diversity and inclusion and its critique of the focus on performative, business case paradigms. In many ways, the subject of diversity and inclusion is like a ball of twine that could be unraveled for a long, long time. However, it is important, perhaps critical, for IHRD scholars and practitioners to continue to wrestle with the issues and the problems raised here. It is unlikely that the world, individual societies, and workplaces, will become less complex and diverse. It is also unlikely that without intentional management and leadership – in fact, championship – to create diverse and inclusive workplaces – that workplaces are naturally, or organically, diverse ­ and inclusive. Prejudices, stereotypes and biases are tricky, persistent and even sometimes unintentionally and subconscious phenomena. Therefore, the field of IHRD has an opportunity to research different aspects of d ­ iversity and inclusion through a variety of methods and contexts. Hopefully, the knowledge and wisdom offered by such research will reach and benefit practitioners and those in positions of influence within organizations.

REFERENCES Alfred, M., and Chlup, D. (2010). Making the invisible, visible: Race matters in human resource development. Advances in Developing Human Resources, 12(3), 332‒351. Allport, G.W. (1954). The Nature of Prejudice. Reading, MA: Addison-Wesley. Bierema, L. (2010). Resisting HRD’s resistance to diversity. Journal of European Industrial Training, 34(6), 565‒576. Branine, M. (2011). Managing Across Cultures. Thousand Oaks, CA: Sage Publications.

GARAVAN 9781781954171 PRINT.indd 414

22/09/2017 16:32

IHRD, diversity and inclusion  ­415 Chapman, D.D., and Gedro, J. (2009). Queering the HRD curriculum: Preparing students for success in the diverse workforce.  Advances in Developing Human Resources,  11(1), 95‒108. Cox, T. (1991). Managing cultural diversity: Implications for organizational competitiveness. The Executive, 5(3), 45‒56. Cox, T. (2001). Creating the Multicultural Organization. San Francisco, CA: Jossey-Bass. Dennis, B., D’Intino, R., Houghton, J., Neck, C., and Boyles, T. (2008). Corporate social performance: Creating resources to help organizations excel. Global Business and Organizational Excellence, 26‒41. Ely, R.J., and Thomas, D.A. (2001). Cultural diversity at work: The effects of diversity perspectives on work group processes and outcomes. Administrative Science Quarterly, 46(2), 229‒273. Equal Employment Opportunity Commission (EEOC) (2013). Title VII of the Civil Rights Act of 1964. http://www.eeoc.gov/laws/statutes/titlevii.cfm (accessed May 14, 2017). Garavan, T., and Carbery, R. (2012). A review of international HRD: Incorporating a global HRD construct. European Journal of Training and Development, 36(2/3), 129‒157. Gedro, J. (2010). Understanding, designing, and teaching LGBT issues. Advances in Developing Human Resources, 12(3), 352‒366. Gedro, J.A., Cervero, R.M., and Johnson-Bailey, J. (2004). How lesbians learn to negotiate the heterosexism of corporate America. Human Resource Development International, 7(2), 181‒195. Gedro, J., Mercer, F., and Iodice, J.D. (2012). Recovered alcoholics and career development: Implications for human resource development.  Human Resource Development Quarterly, 23(1), 129‒132. Gedro, J., Mizzi, R., Rocco, T., and van Loo, J. (2013). Going global: Professional and mobility concerns for LGBT workers. Human Resource Development International, 16(3), 282‒297. Green, T.K., and Kalev, A. (2008). Discrimination-reducing measures at the relational level. Hastings Law Journal, 59, 1435–1461. Harvey, C., and Allard, J. (2009). Understanding and Managing Diversity (4th edition). Upper Saddle River, NJ: Pearson Prentice Hall. Hill, R. (2009). Incorporating queers: Blowback, backlash, and other forms of resistance to workplace diversity initiatives that support sexual minorities. Advances in Developing Human Resources, 11(1), 37‒53. Hite, L.M., and McDonald, K.S. (2010). Perspectives on HRD and diversity education. Advances in Developing Human Resources, 12(3), 283‒294. Holladay, C., and Quinones, M. (2005). Reactions to diversity training: An international comparison. Human Resource Development Quarterly, 16(4), 529‒545. Kilian, C., Hukai, D., and McCarty, C. (2005). Building diversity into the corporate pipeline. The Journal of Management Development, 24(1/2), 155‒168. Marsella, A. (2009). Diversity in a global era: The context and consequences of difference. Counseling Psychology Quarterly, 22(1), 119‒135. McNamee, S., and Miller, R. (2009). The Myth of Meritocracy. Lanham, MD: Rowman & Littlefield. Metcalfe, B., and Rees, C. (2005). Theorizing advances in international human resource development, 8(4), 449‒465. Nishii, L. (2013). The benefits of climate for inclusion for gender-diverse groups. Academy of Management Journal, 56(6), 1754–1774. Paul, K., Meyskens, M., and Robbins, S. (2011). Components of a global mindset: Corporate social responsibility and cross-cultural sensitivity. Journal of International Business and Cultural Studies, 5, 1–18. Pieterse, A., Knippenberg, D., and Dierendonck, D. (2013). Cultural diversity and team performance: The role of team member goal orientation. Academy of Management Journal, 56(3), 782‒804. Ramburuth, P., and Welch, C. (2005). Educating the global manager: Cultural diversity

GARAVAN 9781781954171 PRINT.indd 415

22/09/2017 16:32

416  Handbook of international human resource development and cross-cultural training in international business education. Journal of Teaching in International Business, 16(3), 5‒27. Repečkienė, A., Kvedaraitė, N., and Jankauskienė, V. (2011). Intercultural competence as precondition for cultural diversity management. Economics and Management, 16, 882‒891. Roberson, Q. (2006). Disentangling the meaning of diversity and inclusion in organizations. Group & Organization Management, 31(2), 212‒236. Ruona, W., and Gibson, S. (2004). The making of twenty-first-century HR: An analysis of the convergence of HRM, HRD, and OD. Human Resource Management, 43(1), 49‒66. Sabharwal, M. (2014). Is diversity management sufficient? Organizational inclusion to further performance. Public Personnel Management, 43(2), 197‒217. Scroggins, W., and Benson, P. (2010). International human resource management: Diversity, issues and challenges. Personnel Review, 39(4), 409‒413. Society for Human Resource Management (SHRM) (2009). Global Diversity and Inclusion: Perceptions, Practices, and Attitudes. Alexandria, VA: Society for Human Resource Management. http://graphics.eiu.com/upload/eb/DiversityandInclusion.pdf (accessed May 14, 2017). Sue, D.W. (2010). Microaggressions in Everyday Life: Race, Gender, and Sexual Orientation. New York: John Wiley & Sons. Sultana, M.A., Rashid, M.M., Mohiuddin, M., and Mazumder, M.N.H. (2013). Crosscultural management and organizational performance: A content analysis perspective. Journal of International Business and Management, 8(8), 133‒146. Swanson, R.A. (1990). Human resource development and the global economy. Human Resource Development Quarterly, 1(2), 105‒107. Swanson, R.A. (1995). Human resource development: Performance is the key.  Human Resource Development Quarterly, 6(2), 207‒213. Thomas, D., and Ely, R. (1996). Making differences matter: A new paradigm for managing diversity. Harvard Business Review, September–October, 79‒90. Wentling, R., and Palma-Rivas, N. (1998). Current status and future trends of diversity initiatives in the workplace: Diversity experts’ perspective. Human Resource Development Quarterly, 9(3), 235‒253.

GARAVAN 9781781954171 PRINT.indd 416

22/09/2017 16:32

20. IHRD and global talent development

Andrew Bratton, Thomas Garavan, Norma D’Annunzio-Green and Kirsteen Grant

INTRODUCTION As the world of work continues to evolve at a rapid pace, learning and development (L&D) professionals are increasingly recognizing the importance of understanding business needs and commercial awareness. Although most L&D professionals report that they are increasingly aligned to business goals and objectives, it is also clear that many still struggle to evaluate the impact of talent development activity on the organization (CIPD, 2015). The state of the world economy at local, national, regional and global levels greatly impacts both the business activities of multinational corporations (MNCs) but also the activities of international organizations. First, economic conditions within particular countries as they grow or decline will change how attractive they are as investment destinations for MNCs. Differences in the economic favorability will motivate MNCs to shift their business activity to enhance profitability, resulting in differing L&D requirements in different regions and countries. Second, most MNCs must manage talent in emerging markets, such as China, India, Africa and the Middle East. This represents part of the broader challenge of how to respond to local demands while maintaining a coherent international human resource development (IHRD) strategy and L&D approach (Gomes et al., 2015; Horwitz, Budhwar, and Morley, 2015; Stahl, Björkman, and Morris, 2012b). International organizations are required to respond to complex and challenging conditions created by negative economic conditions that drive poverty related consequences (Missoni and Alesani, 2013). Economic uncertainty has potential negative implications for IHRD. There may be a greater or reduced requirement for learning and development activities. MNCs will adjust their learning and development policies and practices to align with prevailing economic conditions (CrowleyHenry and Heaslip, 2014). In this challenging environment, international talent development therefore concerns the right talent, at the right time and in the right place. In this chapter, highlighting the important role 417

GARAVAN 9781781954171 PRINT.indd 417

22/09/2017 16:32

418  Handbook of international human resource development of international talent development should serve to benefit academic research as well as facilitate the practical pursuit of IHRD practice in MNCs and other international organizations. This chapter is structured as follows: first, we begin by defining international talent development and we highlight issues concerning different approaches to talent development. Second, we identify options for organizing and managing talent development. Third, we identify the main types of programs that organizations utilize to develop talent. Fourth, we examine talent development in international organizations and across different regions. Finally, we conclude by proposing future areas of research on talent development in international organizations, as well as recommendations for IHRD practice.

DEFINING TALENT AND TALENT DEVELOPMENT IN AN IHRD CONTEXT There is considerable conceptual confusion and lack of clarity regarding the definition, scope and overall goals of the concept (Devins and Gold, 2014; Garavan, Carbery, and Rock, 2012; Maycock and Ikuomola, 2015). Some researchers treat the subject as synonymous with HRM and the questions of what talent means and how organizations should manage talent are still subject to debate (Collings and Mellahi, 2009; Thunnissen, Boselie, and Fruytier, 2013). However, it is acknowledged that talent development represents an important component of global talent management (Kim and McLean, 2012; Scullion and Collings, 2011; Stahl et al., 2012a). In order to advance the study of talent development it is necessary not only to define the (scope of the) phenomenon, but also to identify relevant approaches found in the literature. We propose that in order to understand the scope of international talent development, the following questions should be considered: What is talent for the purpose of development? Does talent development focus on technical or generic competences or both? What are the learning needs that are the primary focus of talent development, organizational or individual or some combination? Does talent development occur in an accelerated or traditional way? What are the pathways, programs and processes that contribute the architecture of talent development? Answers to these questions should help to bring some coherence to the scope of the concept. For the purpose of this chapter we define talent development within an international organization as follows: Talent development focuses on the planning, selection and implementation of development strategies for all or part of the talent pool to ensure that the

GARAVAN 9781781954171 PRINT.indd 418

22/09/2017 16:32

IHRD and global talent development  ­419 organization has both the current and future supply of talent to meet strategic objectives locally and internationally and that development activities are aligned with organizational talent management processes.

The knowledge base on talent development is both theoretically and empirically underdeveloped and most of the literature in the field is practitioner- or consultancy-based (Dries, 2013; Gallardo-Gallardo, Dries, and González-Cruz, 2013). However, the existing evidence suggests that workplaces are designing talent development processes unique to their organization. Moreover, it is also clear from the extant literature that many definitions or descriptions of talent development adopt an exclusive approach that focuses on individuals and emphasizes leadership talent development (Tansley, 2011). Nonetheless, there remains the problem about the meaning of the term talent in organizations. The concept of ‘talent’ is defined differently in various organizations and its use in IHRD is varied and can cause confusion (Devins and Gold, 2014). For example, some commentators see talent consisting of those individuals or ‘A-players’ who can make a difference to organizational performance, whether through their immediate contribution or in the longer term by demonstrating high levels of potential (Groysberg, 2010; Tansley et al., 2006; Tansley and Tietze, 2013). Others recognize that talent can be found more widely in the organization, so every employee has talent and potential (McDonnell, Björkman, and Ehrnrooth, 2010; Redford, 2005). Alternatively, others view talent as a collective phenomenon based on relationships, leadership, networks and teamwork, all aspects of social capital shared between people (Collings and Mellahi, 2009; Iles, Chuai, and Preece, 2010). Engaging fully with the conceptualization of talent is beyond the scope of this chapter, but it is necessary here to highlight the socially constructed nature of talent and its definition and our view that there are social responsibility and sustainability inherent in mainstream management concepts and ideas about talent and its identification (Downs and Swailes, 2013; Sheehan, Garavan, and Carbery, 2014). For example, the Chartered Institute of Personnel and Development defines talent as “those individuals who can make a difference to organizational performance either through their immediate contribution or, in the longer term, by demonstrating the highest level of potential” (CIPD, 2015, p. 2). Although talent exists in all parts of a workforce, organizational talent programs usually focus on leadership and management capabilities and can exclude all or most employees (Farndale, Scullion, and Sparrow, 2010). In a review of the talent development literature Gallardo-Gallardo, Dries, and González-Cruz (2013) outline that in the context of work

GARAVAN 9781781954171 PRINT.indd 419

22/09/2017 16:32

420  Handbook of international human resource development organizations two dimensions are important in defining talent. The first dimension makes a distinction between talent as characteristics of people, such as abilities, knowledge and/or competencies (object approach) and talent as people (subject approach). The second dimension relates to differentiation of the workforce. Definitions can be divided into an exclusive (that is, talent understood as an elite subset of an organization’s workers) or inclusive (that is, talent understood as all employees of an organization) approach to talent development. The inclusive approach, on the one hand, is based on the assumption that that all employees have their own strengths and, given an opportunity to develop and apply their knowledge and skills, can potentially add value to their organization by contributing to its core competence (Devins and Gold, 2014). The exclusive approach, on the other hand, is based on the segmentation of the workforce and the identification of a select group of employees who rank near the top in terms of performance and capability. Within this group Brittain (2007) separates into two groups: first the high performers identified as the future leaders, representing between 2 percent and 10 percent of people in organizations; second a further 5‒10 percent of employees with essential knowledge, skills or ‘know-how,’ such as commercial contacts. Iles, Chuai, and Preece (2010) have highlighted the lack of consensus concerning where talent may fall within the scope of a talent development process. They emphasize four possible scenarios: (1) an inclusive approach that focuses on developing each potential employee; (2) an inclusive approach that emphasizes the development of social capital more generally in the organization; (3) an exclusive approach that focuses on developing specific individuals, or (4) an exclusive approach that focuses on key positions, roles and develops talent to fulfil these roles. The empirical evidence suggests a mixture of approaches in organizations. A CIPD (2015) annual of survey of L&D with over 500 respondents found that many organizations have adopted an exclusive approach. In nearly three-fifths of organizations talent management activities cover all or most employees, but most focus on high-potential employees and senior managers. Although McKinsey Consulting Group initially advocated an exclusive approach to talent development, they now advocate a more inclusive approach that targets development for not just ‘A players’ but also ‘B players’ (Ernst & Young, 2010). However, relatively few organizations in the private sector adopt inclusive approaches. A study reported in Public Personal Management (Reilly, 2008) suggests that inclusive approaches to talent development are more likely to be found in public sector organizations. Such an approach is consistent with an innovation perspective on talent (Christensen, Johnson, and Horn, 2010). This suggests that all employees should be seen as talent given their potential to

GARAVAN 9781781954171 PRINT.indd 420

22/09/2017 16:32

IHRD and global talent development  ­421 generate creative ideas. The hybrid approach advocated by van der Sluis and van de Bunt-Kokhuis (2009) has the advantage of combining the two approaches to reap the maximum benefit. Maycock and Ikuomola (2015) also suggest that a hybrid approach to talent development may be more appropriate in term of fairness and employee motivation. Talent Development: Technical or Generic Competencies or Both? Whether talent development processes should focus on the development of technical or generic competencies or both represents a significant debating point within the literature (Garavan, Carbery, and Rock, 2012). Traditionally authors posited that the overriding factors leading to effective performance included technical credibility and the ability to use systems and processes to meet performance standards. Managers in the initial stages of their careers often place more focus on technical competencies while giving generic competencies less credence. As a consequence, they frequently fell short of the performance expectations required of the role. Traditional talent development processes such as training are extremely effective at imparting technical competencies. They can in many cases be developed in isolation from the workplace (Lahti, 1999; Hirsh, 2009). However, it is increasingly emphasized that high potential talent must be proficient in working in diverse work contexts (Dierdorff and Morgeson, 2007), and are inextricably linked to features or characteristics of context. As a consequence, there is an increased focus on generic competencies. The shift to generic competencies is something that has occurred in the past 10‒15 years. The term ‘generic competencies’ emphasizes a range of qualities and capabilities that are important in the workplace. These include skills such as problem solving and analytical skills, communication skills, teamwork competencies and skills to identify access and manage knowledge. Generic competencies also include personal attributes such as imagination, creativity and intellectual rigor and personal values such as persistence, integrity and tolerance (Garavan, Hogan, and CahirO’Donnell, 2009; Garavan, Carbery, and Rock, 2012; Sandberg, 2000). Generic competencies are considered to be important for potential and career advancement; however, it is clear that such generic competencies are also highly contextual (Dierdorff, Rubin, and Morgeson, 2009). Context consists of task, social and physical dimensions. Task context emphasizes informational and structural features of the role, ambiguity, uncertainty levels of accountability and autonomy (Johns, 2006). Social context dimensions focus on aspects of the role that are interpersonal in nature such as interpersonal conflict, the degree of interdependence and

GARAVAN 9781781954171 PRINT.indd 421

22/09/2017 16:32

422  Handbook of international human resource development density of human interaction. Physical context focuses on issues such as the working conditions like degree of risk, hazard, noise and so on, which influences work performance and behavior. Unlike technical competence, generic competencies provide more significant development challenges. They tend to be holistic, to overlap, and interweave (Capaldo, Landoli, and Zollo, 2006), and they are intrinsically related to the kind of person that one is. They are related to issues such as self-confidence and selfesteem of the learner. Therefore, it is clear that MNCs and international organizations value skills that go beyond the technical and include a full spectrum of soft skills. Talented employees are expected to display these generic competencies in combinations that meet the demands of a unique and continually changing work environment (Garazonik, Nethersell, and Spreier, 2006). It suggests that ongoing talent development processes need to be flexible, adaptable, and capable of scalability and in tune with the evolving local and international context. As a consequence, talent development must increasingly be work-based in order to develop capabilities to cope with the temporality or dynamism of work in an international context.

THE DIMENSIONS OF TALENT DEVELOPMENT The dimensions of talent development will depend on whether the focus is on the individual or the organization and whether the talent pool is perceived scarce or plentiful. Figure 20.1 shows that these different perspectives on talent development can be differentiated, on the one hand, between those that see talent as exceptional or rare, and those that see talent as potentially broad, and on the other hand, between those that focus on individual capability and those that focus on organization-wide capacity (Devins and Gold, 2014; Stewart and Rigg, 2011). This variation then affects what is meant by talent development and the kinds of interventions required to develop talent. So far we have focused on the meaning of talent development and the contribution it makes to the functioning of the work organization. We now turn to an important part of the talent development discourse, the search for its defining features, which potentially can demonstrate the connectedness between talent development and improved knowledge and skills and high performance workplaces. Gandz (2006) suggests the notion of a talent development pipeline architecture. This architecture consists of a clear statement of talent development needs, developmental pathways, effective HR systems to support identification, assessment and development of talent and a blend

GARAVAN 9781781954171 PRINT.indd 422

22/09/2017 16:32

IHRD and global talent development  ­423 Individual focus Stars

L&D and HR processes to maximize everyone’s potential

High-flyers

Organization process to attract, Ensure right person in right nurture and keep exceptionally job talented people for future top positions Talent as scarce resource

Succession planning – integrated organization processes to nurture supply of future managers/leaders for key positions Configuration of organization resources to enable talented people to achieve full potential

Interventions to develop talent pool across the workforce

Talent as plentiful

Developing collective organization capacity

Organization focus

Source:  Stewart and Rigg (2011, p. 28).

Figure 20.1  Perspectives on talent and talent management of developmental strategies (Garavan, Carbery, and Rock, 2012). The notion of a pipeline architecture is central to the arguments made by Stahl et al. (2012a) who examine different approaches according to the different contributions employees make in multinational companies. Therefore, the talent development architecture is not a one size fits all approach but should be differentiated. It is argued that it is necessary to understand the processes that support talent development in order to understand its contribution to achieving competitive advantage (Festing and Eidems, 2011). Consistent with the dynamic capabilities perspective, it is important to consider how those responsible for managing talent development manage the architecture. In particular, it focuses on issues of stakeholder engagement, communication activities and decisions concerning the target groups for talent development activities and the extent of standardization of talent development processes and systems across the organization (Downs and Swailes, 2013; Lewis and Heckman, 2006; Thunnissen, Boselie, and Fruytier, 2013).

GARAVAN 9781781954171 PRINT.indd 423

22/09/2017 16:32

424  Handbook of international human resource development Articulation of Talent Needs Many MNCs and international organizations utilize competency maps to guide competence development and provide a common language around which to discuss talent development needs (Isrealite, 2010). These maps or frameworks are typically standardized across all units of the organization and are used to identify individual and business unit development needs. There is a set of mixed views concerning the use of competency models especially in the context of identifying and developing high potentials (Hollenbeck, McCall, and Silzer, 2006). However, they are very popular in many international organizations. Competency models typically articulate behavioral standards that frequently look to the past rather than the future (Tornow and Tornow, 2001). Many international organizations make use of systematic, formal talent review processes, which focus on assessing future development potential. These processes typically focus on the identification of high potentials and their unique development needs. Many of those processes tend to be complex and the main aim is to strategically align talent with critical organizational capabilities. Mäkelä, Björkman, and Ehrnrooth’s (2010) qualitative case study research on a single world-leading multinational manufacturing firm shows that talent review processes usually involve senior management in identifying development needs. McDonnell’s (2011) research indicates that such processes may lead to ‘cloning’ and there may be too much of a focus on the present rather than the future. It examines the issue of organizational politics. Senior management may characterize particular high potential candidates in overly positive terms. For example, there may be a lack of candor concerning other people’s strengths and development needs and information about the best performers and those with most potential may be suppressed in an effort to protect particular individuals who they do wish to choose (Mellahi and Collings, 2010). There are also definitional problems particularly with what constitutes potential. Silzer and Church (2010) argue that the term ‘high potential’ is over-used and it is not always clear what people mean when they use the term in management and organizational discourse. Creating Developmental Pathways Developmental pathways are defined as “experiences, exposures and challenges” (Gandz, 2006, p. 2) that talent must work through in order to emerge as the talent of the future. Experiences are highlighted as central to the design of talent development pathways (Carpenter, Sanders, and Gregersen, 2000). They can lead to significant career advancement and

GARAVAN 9781781954171 PRINT.indd 424

22/09/2017 16:32

IHRD and global talent development  ­425 confer strategic advantage on the organization. Ruddy and Anand (2010), for example, cite an interview with Erin Lap from Hay Associates in which she emphasized four key strengths of a series of experiences in the context of talent development: the development of an enhanced understanding of complex business issues and a broader perspective; enhanced organ­ izational and cultural awareness; enhanced respect for differences and a greater sense of curiosity; and the opportunity to build relationships and enhance networking skills. The concept of exposure is also an important dimension of development. Exposures in this context mean opportunities to work in different contexts and situations (Garavan, Carbery, and Rock, 2012). These may be achieved through job rotation, secondments, project and international assignments (Evans et al., 2011). These exposures provide talent with opportunities to experience different organizational, cultural, cross-­ cultural and work practice situations. Exposures help to develop technical expertise, judgment and decision-making, drive for results, strategic thinking and business acumen (Yost and Mannion-Plunkett, 2010; Vaiman, Scullion, and Collings, 2012). Developmental challenges or hardship challenges are an important component of the talent development process. These may include challenges such as business turnaround, a business start-up, downsizing or business closure. These challenges allow employees to learn from mistakes and failures, develop their resilience, deal with stressful situations and ­recognize personal limitations. Effective HR Systems to Support Identification, Assessment and Development of Talent The components of an effective HR system to support talent development are well documented (Iles, Chuai, and Preece, 2010). It includes human resource planning, effective selection of talent, performance management, career management processes and succession planning (Dickmann, Brewster, and Sparrow, 2016). McDonnell and Collings (2011) advocate a contingency approach to the design of HR systems to support talent development. These systems should be based on business strategy imperatives and objectives. They also highlight the importance of cultural fit and the involvement of stakeholders in the full spectrum of talent management processes. For example, IKEA selects applicants using tools that focus on values and cultural fit; the standard questionnaire largely ignores academic credentials, skills and experience and instead explores candidates’ beliefs and values, which become the basis for screening, interviewing and leaning and development (Stahl et al., 2012a).

GARAVAN 9781781954171 PRINT.indd 425

22/09/2017 16:32

426  Handbook of international human resource development Avedon and Scholes (2010) identify four levels of talent integration. They suggest that in the initial stages the HR system will consist of separate programs and a strong emphasis on tools. At level two, there will be evidence of a more systematic approach emphasizing integrated and aligned processes and programs. At level three, the organization’s business strategy will drive HR system integration and alignment. At level four, there exists a talent management mindset within the organization. Accordingly, Kaye (2002) conceptualizes talent development as a threeway process. For example, the individual, the manager, and the organization have particular accountabilities for talent development. Individuals set career goals, seek development opportunities and implement development action plans. Managers play a role in assessing needs, clarify and discuss goals, support development, provide feedback and monitor development. Organizations provide resources, tools, values and culture, as discussed below. Organizational-level Focus The organizational challenges enveloping talent and talent development are generally more complex for organizations operating globally, then for those operating out of a single location (Minbaeva and Collings, 2013). For example, MNCs need to be cognizant of and respond to different demographic challenges and transient labor market conditions (Schuler et al., 2011b). This dictates that MNCs are adept at continuously monitoring and predicting future skills needs and gaps, particularly within high skilled occupations or when operating within volatile labor markets where skill deficits are prevalent. Similarly, MNCs need to recognize the extent to which key talent may or may not be portable across the global organization. For instance, societal and organizational norms and culture can vary considerably across geographical boundaries (Minbaeva and Collings, 2013), resulting in potentially negative outcomes for talent development and the realization of individual performance expectations. For MNCs these challenges bring to the fore the imperative to ensure the adequacy and sustainability of talent pipelines through effective and proactive talent identification, development and succession planning processes. We have seen that while the exclusive (targeted) approach to international talent development remains most prevalent, an inclusive (whole workforce) approach is most commonly found in public and service sector organizations (Reilly, 2008). Thus, the impetus for talent development may be considered differently not just across geographical boundaries, but also across localized industry sectors and markets. Despite budgetary and resource constraints, governance and management within public

GARAVAN 9781781954171 PRINT.indd 426

22/09/2017 16:32

IHRD and global talent development  ­427 and service sector organizations tend to be more accepting – advocates even – of the unitarist assumption that everyone has talent and is capable of contributing to organizational performance. In contrast, profit-driven enterprises generally found within the private sector are differentiated by their emphasis on diverse (and often competing) stakeholder needs (Thunnissen, Boselie, and Fruytier, 2013) and on maximizing shareholder return (Collings, 2014). In this context exclusive or more targeted approaches to talent identification and development may be justifiable in the search for strategic ‘fit’ between individuals’ contribution and the realization of organizational needs and goals (enhanced organizational performance). However, reaffirming the potential value of utilizing a hybrid approach, as advocated by van der Sluis and van de Bunt-Kokhuis (2009), the challenges of focusing largely on exclusive or targeted approaches to talent development center on parity and ensuring equitable access to talent development, and on motivating and engaging those who may not be considered as emerging or top ‘talent’ (Maycock and Ikuomola, 2015). The danger herein resides in HR systems and practices which are incapable of strategically aligning individual contribution and value with organizational needs and imperatives (Stahl et al., 2012a). Nevertheless, no matter the approach adopted to international talent development, a number of consistencies are apparent in the types of programs which tend to be utilized. Programs to Enable Talent Development The types of programs that organizations utilize to develop talent fall into four categories: (1) formal programs; (2) relationship-based developmental experiences; (3) job-based developmental experiences; and (4) informal/ non-formal developmental activities (Byham, Smith, and Paese, 2002; Conger, 2010; Garavan, Carbery, and Rock, 2012; McCall, Lombardo, and Morrison, 1988). Some commentators have suggested a 70:20:10 strategy whereby 70 percent of talent development takes place through work activities; 20 percent through relationships and 10 percent through formal development activities (Wilson et al., 2011). It is an extremely popular framework; however, it is rarely implemented in a systematic way. The model is largely too high-level and does not offer much in terms of detailed guidance nor does it specify the lessons learned from each experience. Wilde (2010) argues that this model overstates the role of experience in talent development and it underestimates the value of learning from others. Day (2010) has also highlighted the difficulties involved in learning from experience

GARAVAN 9781781954171 PRINT.indd 427

22/09/2017 16:32

428  Handbook of international human resource development and other researchers have highlighted the tendency to fall back on the 10 percent component, which then becomes the 70 percent (Wilson and van Velsor, 2011; Wilson and Yip, 2010). Therefore, in reality the reverse is the case with the majority of talent development activities concentrated in the 10 percent category. Formal Talent Development Programs Formal talent development programs cover a broad spectrum of strategies including conceptual and skill-based development programs, personal growth development programs, feedback-based development interventions and action focused development interventions (Conger, 2010). The majority of formal programs are designed to enhance generic skills and behaviors. These types of programs are typically targeted toward middle and senior managers and technical/professional talent categor­ ies. Action learning interventions are typically directed at management talent groups and are designed to enhance generic competencies such as teamwork, problem solving and strategic awareness. The research on this group of development strategies is mixed and it fails to establish whether it enhances talent effectiveness and potential (Baruch, 2006; Ready and Conger, 2007). Relationship-based Talent Development Interventions Relationships are increasingly considered central to the talent development process (McCauley and Douglas, 2004; Rock and Garavan, 2006). The relationships considered most significant include peers, senior leaders, customers and suppliers. They are considered important to the talent development context because they have helped talented employees see new perspectives and understand bigger picture issues (Balkundi and Kilduff, 2006). Developmental relationships are conceptualized by Higgins and Kram (2001) as relationships where an individual takes an active interest and action to advance the career of another individual. They provide a variety of developmental functions such as sponsorship, coaching, mentoring, psycho-social support and career advice (Friday, Friday, and Green, 2004). Developmental relationships are increasingly used to develop high potential talent (CIPD, 2015; Novations, 2009). Developmental relationship strategies present a number of significant challenges for organizations: finding the appropriate number of individuals who can perform roles as coaches and mentors, specific gender issues when matching mentors and mentees. Higgins, Dobrow, and Roloff (2010) highlights that

GARAVAN 9781781954171 PRINT.indd 428

22/09/2017 16:32

IHRD and global talent development  ­429 the role of optimism may be important in explaining both the structure and quality of an individual’s developmental network. Lombardozzi and Casey (2008) found that the processes in developmental relationships involved an iterative interplay between specific designer-led learning activities, learner-led activities, interaction with others and learner action and cognition processing. They represent an important and effective talent development strategy because development takes place in context and learning is ‘embedded’ in the learners’ working practices. Using the Job as the Basis for Development The job represents a primary source of development and various aspects of the job are highlighted. Wilson et al. (2011) argue that the job provides five significant developmental opportunities: bosses and superiors; turnaround situations; increases in job scope; horizontal job moves; and new initiatives such as doing a stretch task, implementing change and developing new practice. These job-based experiences need to meet a number of design requirements to be effective (Ohlott, 2004). Job tasks need to have high instability and the potential to be successful; they should involve some form of cross-functional influence; take learners outside of their comfort zones, have a major strategic component and involve dealing with different bosses. Job experiences are frequently taken for granted as talent development strategies (Garavan, Carbery, and Rock, 2012; van Velsor and Guthrie, 1998). They are often viewed as opportunities to get work done and the mindset of key managers may be anti-development. They require significant levels of self-confidence on the part of the learner and the climate and culture of the organization may not be conducive to the recognition of job activities as development opportunities. Informal and Non-formal Talent Development Opportunities The majority of the talent development literature emphasizes formal development strategies (Garavan, Carbery, and Rock, 2012). However, the contingent nature of work in organizations suggests that talent development strategies should also focus on the informal and non-formal. Marsick and Watkins (2001) make a number of important distinctions between informal, incidental and implied development. Informal development is unplanned, ad hoc with no specified outcomes. It is predominantly experiential. Incidental development is unintentional, a bi-product of another activity. They see it as a subcategory of informal learning. Implicit development consists of learning that occurs independent of conscious attempts to learn. Eraut (2004) argues that this is development that occurs

GARAVAN 9781781954171 PRINT.indd 429

22/09/2017 16:32

430  Handbook of international human resource development without awareness or explicit knowledge. Sadler-Smith (2006) suggests that implicit development is broadly equivalent to incidental learning. Non-formal learning is structured in terms of learning outcomes and is considered intentional development (Colley, Hodkinson, and Malcolm, 2002). Alternatively, research suggests that there is no such thing as informal learning because whatever people do will result in learning (Billett, 2001). With the increasing emphasis on a social capital perspective and collective learning processes, informal talent development processes will become more used and researched (Wang-Cowham, 2011). In the context of international talent development it is important to consider how systems operate and differ across different regional contexts, where industry and culture collide and magnify the importance of international talent development practice (Scullion and Collings, 2011). The following section will examine three geographic regions: United Kingdom, Asian and United States.

TALENT DEVELOPMENT IN DIFFERENT GLOBAL CONTEXTS UK Context The current UK labor market is characterized by a situation where low inflation, expanding labor supply and a lack of productivity growth is reducing economic pressure on employers to implement pay rises for staff (CIPD, 2016). UK businesses report that they lack the knowledge and capability to deal with the productivity challenges and many are stuck in a cycle of “low investment, low training and low ambition in a jobs-rich and pay-poor environment” (Beatson, 2016, n.p.). On the positive side, shortterm prospects are good with many job opportunities and an adequate supply of workers to fill these. This situation creates both challenges and opportunities for global talent development strategy and activity. Research into the current state of talent management and development in the UK (CIPD, 2006a) suggests that the majority of talent activities focus on high-potentials, followed by senior managers, graduates, middle and junior managers, and technical staff. More than a quarter of organizations include all staff in the talent management activities. There is a growing priority given by individuals to work–life balance (Bonney, 2005) which has implications for the design and implementation of talent development strategies, for example attempts to align flexible working policies with career development schemes provides scope for innovative design of talent development processes.

GARAVAN 9781781954171 PRINT.indd 430

22/09/2017 16:32

IHRD and global talent development  ­431 Ongoing pressures to better utilize the talents of the older workforce will continue to grow in the UK due to workforce demographics, and talent development will not only focus upon different categories of staff but also on different generations with varying talent development needs and priorities, including an increase in workers who are over-qualified for their current role. This reinforces research that shows the important role of the line manager in creating space to understand and plan for relevant talent development interventions (D’Annunzio-Green, 2008). Some of the most sophisticated talent development approaches in the UK context are strongly linked to graduate intakes and their development through the firm. Success in attracting and retaining the ‘noughties’ generation will come from talent development and reward packages that are tailored to the general trends in attitudes and values. One clear aspect of this is the need for more personal and individualized approaches offering new learning opportunities to employees as part of their development (CIPD, 2006a). The UK National Health Service approach to talent management for example, recognizes the need to maintain the motivation and energy of talented people. Their talent development proposition seeks to address this through developing opportunities for secondments and exchanges in other sectors. These serve to extend, the depth and breadth of knowledge of leaders in the NHS while providing an opportunity to reflect and refresh skills and thinking CIPD (2006a, 2006b). Asian Context There is a relatively high level of engagement in global talent development activities in Asia (CIPD, 2012), with a focus on developing high-potential employees, retaining key staff and growing future senior managers/ leaders. In the Asian context the complexities of historical context, the legacy of the state planned economy, economic transformation and rapid growth has created both challenges and tensions for IHRD. A severe lack of people resources and high staff turnover leads to a more active internal labor market and a focus on developing local staff as part of their global talent development priorities (Cooke, 2012). Talent shortages and poaching of staff has resulted in less resource allocation to global talent development (Cooke, Saini, and Wang, 2014; Cooke, 2011). Rather than invest in resource intensive development programs that employees may use as a ‘lever’ for employment at other MNCs, employers in China are more cautious and focus on more personalized global talent development process which helps retain staff. One such approach which has increased in popularity is formal

GARAVAN 9781781954171 PRINT.indd 431

22/09/2017 16:32

432  Handbook of international human resource development ­ entoring processes which extend beyond traditional mentoring (common m in Chinese apprenticeship programs, with a focus on technical and behavioral skills development), toward a more relational focus on “professional development and personal growth of the mentee and the alignment of their needs with those of the organization” (Cooke, 2011, p. 144). The incorporation of a knowledge-sharing socialization mechanism within talent development programs has been found to have a nurturing and supporting effect on learning and development (Wang-Cowham, 2011). Asia is thought to contain a cultural context that emphasizes power distance, paternalism, collectivism, and social relations (Hofstede, 2007). Such contextual and institutional characteristics may create unique leadership behaviors, while influencing the processes underlying the leadership effect, as well as the role of leaders in broader organizational and socioeconomic contexts (Fu et al., 2007). In the context of IHRD, this can be illustrated in the approach taken toward talent classification. Cooke, Saini and Wang (2014) found that: ●

Managerial respondents in India and China tend to adopt an elitist perspective in terms of conceptualizing talent, that is, focusing on those who are the best eduated, best performing and/or with the highest potential and this is where the talent development resource is directed. ● This conceptualization reflects the traditional hierarchy-orientated culture in Asia and the competitive nature of firms with talent development processes that focuses on present needs more than future demands. ● Talent development approaches tend to be more tranasactional than relational, focusing on the competitiveness of the individual and their value to the firm. Research by Mathew (2005) suggests that leadership and succession planning, while important is not being seen as an integral step toward strategic global talent development in Asia. This is worrying in the context of Asian countries being a net exporter of talent, signaling a potential skills drain. Asian economies, including India and China, are faced with the loss of their home-grown talent as qualified and experienced professionals and executives move to foreign-owned MNEs, or to off-shore appointments, rather than remain employed in domestic firms and in the domestic economy (Cooke, 2011).

GARAVAN 9781781954171 PRINT.indd 432

22/09/2017 16:32

IHRD and global talent development  ­433 US Context There are a number of trends in the US influencing IHRD practice. These include embracing multiculturalism at work and providing better education and development opportunities for ethnic groups and the aging workforce (Moss Kanter, 2013), forcing employers to re-evaluate their employee value propositions for multi-generational talent pools. These have implications for IHRD strategies to enable the necessary talent requirements and retain productive employees. This may involve initiatives relating to development opportunities for longer serving employees, as well as management development programs which recognize longer term career trajectories and more intergenerational competition for promoted positions, putting the spotlight on the respective values and requirements of the multi-­generational workforce. Retention is also a key priority for US firms as employee mobility continues to grow due to globalization and demographic trends, the impact of the knowledge-based economy and changing career expectations, especially amongst younger workers (Schuler, Jackson, and Ibraiz., 2011a). From an IHRD perspective this represents an important challenge as US firms embrace a more market-driven strategy toward retention (Cappelli, 2000, 2008). This approach directs the retention and development effort at those employees whose contribution is the most significant to the firm’s longer term success. These ‘A players’ (Huselid, Beatty, and Becker, 2005), are those in strategic jobs for which investments in human resource development show the highest returns (Cappelli and Keller, 2014), driving firms toward an exclusive (Gallardo-Gallardo, Dries, and González-Cruz, 2013) approach to talent development. Associated concerns about the knowledge drain and subsequent implications for decisions around where to invest scarce and valuable IHRD resource has become a prevailing concern with a range of strategic responses (Somaya and Williamson, 2011), the most innovative of which refers to actions taken by US firms to maintain positive relations with former employees. Termed the ‘relational approach’ (Somaya and Williamson, 2011, p. 79) this encourages organizations to build an active data base of former workers with tacit knowledge and established networks to help fill skills gaps, work collaboratively and enable a range of development opportunities for alumni and current employees. There is recognition in many US MNS’s around the high levels of uncertainty in supply and demand of labor, and the impact on IHRD investments decisions. As a result, internal development has become popular in addressing more predictable areas of demand with scarce or less predictable skills ‘bought-in’, possibly changing the role and focus of the HRD department (Cappelli and Keller, 2014).

GARAVAN 9781781954171 PRINT.indd 433

22/09/2017 16:32

434  Handbook of international human resource development For many US firms, HRD resources are directed at leadership development, in both a multicultural and MNC context, with associated priorities for cross-cultural competency development. The development of current and aspiring leaders is still a key challenge, specifically in terms of how HRD interventions yield successful outcomes (Dugan and O’Shea, 2014). In terms of global talent development, Dugan and O’Shea’s research suggests that most successful leader development program in the US will reflect clear links between the program and the organizational strategy; organizational culture and HR systems that align with leadership development principles (to include accountability to support leader development and senior leader support), providing challenging and novel experiences for those involved, as well as the common concern around effective program evaluation. Finally, while there are specific international HRD issues influenced by context, reflected in the three geographical perspectives briefly reviewed here, we also suggest that some of the concerns transcend geographical boundaries and illustrate the universal challenges inherent in IHRD.

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE Based on this review of talent development in international organizations it is possible to draw a number of tentative conclusions. Talent development is a significantly under-developed and under-researched concept. It is almost invariably highlighted as a key component of talent management, which in turn is put forward as one of the most significant challenges facing organizations today. There is also a degree of skepticism as to whether talent development differs from L&D or whether it represents a significant paradigm shift in terms of how L&D is conceptualized and practiced in organizations. It is our view that there is scope in the talent development concept (Garavan, Carbery, and Rock, 2012). It raises a number of important questions concerning who should be developed, to what degree and in what way. The analysis in this chapter has implications for our understanding of talent development in international organizations and results in some practical questions and research avenues to consider. What are the talent development needs of the organization? How customized or personalized are talent development strategies? How effective are managers in their role as facilitators of learning? Does the talent development architecture provide on time access and facilitate self-directed learning? What is the appropriate blend of talent development programs to achieve talent devel-

GARAVAN 9781781954171 PRINT.indd 434

22/09/2017 16:32

IHRD and global talent development  ­435 opment objectives? These represent fundamental questions that we consider in this chapter and to which we in some cases provide only the most tentative of conclusions. However, our review does point to a number of conclusions and useful avenues for future research. An Exclusive Focus on Strategic Talent There is a particularly strong focus in research on talent management to consider the development of strategic or pivotal talent as a key concern of talent development. Talent development strategies can be considered a key dimension of a bundle of high performance work practices that are associated with superior organizational performance. The key issue in this context concerns the ways in which talent development processes are implemented and how they are communicated in organizations. It is not just their presence that is of significance. There is a clear requirement for talent development processes to be integrated with business strategies. There is considerable debate concerning the merits and demerits of exclusive and inclusive approaches to talent development; however, there is significant scope to more fully understand how these two generic approaches influence business performance and the engagement of employees who are not included in an exclusive approach (Thunnissen, Boselie, and Fruytier, 2013; Devins and Gold, 2014). The Role of Line Managers in Championing Talent Development Line managers play a crucial role in talent development by providing coaching and stimulating learning within teams. For example, Procter & Gamble, the world’s largest consumer products company, consistent with its promote-from-within policy encourages line managers at all levels to participate in talent development and evaluations and compensation of line mangers depends partly on their development of employees (Stahl et al., 2012a). Where line managers have the ability to build teams, manage performance and coach employees, they can be key champions of worker development (Devins and Gold, 2014). However, line managers have often had little to no training in supervision let alone opportunities to develop employees, especially at lower levels of the organization (Devins and Gold, 2014). Moreover, a significant factor to the effectiveness of managers in supporting talent development is the attitudes and beliefs of managers themselves (O’Neil and Marsick, 2014; Warhurst, 2013), where they take on the role identify as a ‘facilitator of learning’ as well as that of a manager (Campbell and Evans, 2016). Future research should consider how different organizational contexts influence managers’ s­elf-perceptions of the

GARAVAN 9781781954171 PRINT.indd 435

22/09/2017 16:32

436  Handbook of international human resource development priorities and importance of their role as facilitators of learning (Campbell and Evans, 2016). A Shift toward Customization and Personalization The notion of a one-size fits all approach in terms of talent development is considered to be ineffective. There is an increased emphasis on customizing talent development strategies to meet the needs of individuals. These talent development strategies will need to take account of individual needs, learning styles and current work priorities. Talent development processes therefore need to be less prescriptive and far more about the needs of individual talent. Such a strategy represents a major investment for organizations. It places a significant reliance on effective talent assessment processes and the utilization of the information generated to select best-fit talent development strategies. Personalization and customization bring to the fore the value of individual development planning processes and the design of development pathways current and future needs of individual learners. There is a paucity of research on how these customized and personalized strategies work and the types of talent development architecture required to support them (El Bouhdidi et al., 2010; Garavan, Carbery, and Rock, 2012). A Shift from Organizationally Managed to Self-managed Development Increasingly the onus is shifting to the individual to plan and implement development activities. The locus of decision-making has shifted toward the individual learner making informed choices concerning development. Self-directed talent development activities highlight the need for learner insight and self-awareness, self-confidence and persistence. It also raises questions concerning the developmental stability (resilience) of individuals. There are significant challenges for organizations to develop technologies to support self-directed development. There are also challenges involved in linking self-development activities to organizational goals. Self-directed learning concepts highlight the value of community of practice approaches to talent development, and the notion that development is organized through the practices by which employees’ structure conversations. Indeed, there is a major gap in our understanding of individual characteristics that facilitate self-directed learning, the nature of self-development behavior and the influence of group and organizational factors that facilitate self-development in the context of talent development (Frambach et al., 2012; Gureckis and Markant, 2012).

GARAVAN 9781781954171 PRINT.indd 436

22/09/2017 16:32

IHRD and global talent development  ­437 Continuous, Just-in-Time, Blended Talent Development Processes There will be a continuous demand for talent development processes with the result that such processes will need to be flexible and move away from the classroom. Talent development must also be delivered ‘just-in-time’ (Garavan, Carbery, and Rock, 2012). This has led to talent development processes that focus on delivering learning in bite-size chunks. It means instant access to development. This imperative has resulted in an increasing emphasis on the use of online resources and signposting to learners the most appropriate learning strategy given the amount of time they have available to learn. Blended learning that combines the formal with the informal represents a key challenge for organizations. However, it is clear that while some organizations say they utilize a 70:20:10 approach, in reality there still exists a strong focus on the classroom. Increasingly the lines between work and non-work have become blurred resulting in a 24/7 philosophy on access to talent development resources. Technology is increasingly used as a means to provide this access; however, there is much to be learned concerning the effectiveness of online development strategies (Lim and Morris, 2009; So and Bonk, 2010). To explore the dynamic connection between IHRD strategy and talent development practice future researchers need to employ research designs that utilize both quantitative and qualitative multi-year longitudinal approaches over an extended period of time (Dries, 2013). For example, through analyzing interpretative practice (Holstein and Gubrium, 2000, p. 488), research could examine the ideology, rhetoric and practice of formal and non-formal learning programs involving engagement between managers, other employees and unions over several points in time. Future research should also adopt a more inclusive approach to talent development and therefore could consider the experiences of low-skilled workers (Devins and Gold, 2014) and the contribution of trade unions in making a positive contribution to workplace learning (Findlay and Warhurst, 2011). This could serve to enrich both the theoretical and empirical base of the existing talent development literature and also contribute to the management research agenda.

CONCLUSION Talent development has emerged as a contemporary issue within IHRD. While talent development has largely been the preserve of MNCs, it is increasingly important and relevant to other types of international organizations. The chapter considered a variety of approaches to the

GARAVAN 9781781954171 PRINT.indd 437

22/09/2017 16:32

438  Handbook of international human resource development ­ evelopment of talent focusing on inclusive and exclusive approaches. d The more effective talent development interventions are premised on the notion that inclusive approaches are better than exclusive approaches. There is also evidence that approaches to talent development will vary depending on geographical region.

REFERENCES Avedon, M.J., and Scholes, G. (2010). Building competitive advantage through integrated talent management. In R. Silzer and B.E. Dowell (eds) Strategy-Driven Talent Management: A Leadership Imperative (pp. 73‒122). San Francisco, CA: Jossey-Bass. Balkundi, P., and Kilduff, M. (2006). The ties that lead: A social network approach to leadership. The Leadership Quarterly, 17(4): 419‒439. Baruch, Y. (2006). Career development in organizations and beyond: Balancing traditional and contemporary viewpoints. Human Resource Management Review, 16(2): 125‒138. Beatson, M. (2016). CIPD Press Release: Pay growth for most employees likely to remain stuck in the slow lane until at least the end of the decade, May 16. Billett, S. (2001). Learning throughout working life: Interdependencies at work. Studies in Continuing Education, 23(1): 19‒35. Bonney, N. (2005). Overworked Britons? Part-time work and work–life balance. Work, Employment and Society, 19(2): 391‒401. Brittain, S. (2007). How to manage key talent. People Management, 13(12): 46‒47. Byham, W.C., Smith, A.B., and Paese, M.J. (2002). Grow Your Own Leaders: How to Identify, Develop, and Retain Leadership Talent. Upper Saddle River, NJ: Development Dimensions International and Prentice Hall. Campbell, P., and Evans, P.J. (2016). Reciprocal benefits, legacy and risk: Applying Ellinger and Bostrom’s model of line manager role identity as facilitators of learning.  European Journal of Training and Development, 40(2): 74‒89. Capaldo, G., Landoli, L., and Zollo, G. (2006). A situationalist perspective to competency management. Human Resource Management, 45(3): 429‒448. Cappelli, P. (2000). A market-driven approach to retaining talent, Harvard Business Review, 78(1): 103‒111. Cappelli, P. (2008). Talent on Demand: Managing Talent in an Age of Uncertainty. Boston, MA: Harvard Business Press. Cappelli, P., and Keller, J.R. (2014). Talent management: Conceptual approaches and practical challenges. The Annual Review of Organisational Psychology and Organisational Behaviour, 1: 305‒331. Carpenter, M.A., Sanders, W.G., and Gregersen, H.B. (2000). International assignment experience at the top can make a bottom-line difference. Human Resource Management, 3(2‒3): 277‒285. Chartered Institute of Personnel and Development (CIPD) (2006a). Reflections on Talent Management (online). London: CIPD. http://www.cipd.co.uk/onlineinfodocuments (accessed May 14, 2016). Chartered Institute of Personnel and Development (CIPD) (2006b). Talent Management: Understanding the Dimensions. London: CIPD. Chartered Institute of Personnel and Development (CIPD) (2012). Learning, Talent and Innovation in Asia. London: CIPD. Chartered Institute of Personnel and Development (CIPD) (2015). Learning and Talent Development. London: CIPD. Chartered Institute of Personnel and Development (CIPD) (2016). Labour Market Outlook, Views from Employers, Spring. London: CIPD.

GARAVAN 9781781954171 PRINT.indd 438

22/09/2017 16:32

IHRD and global talent development  ­439 Christensen, C.M., Johnson, C.W., and Horn, M.B. (2010). Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns. New York: McGraw-Hill. Colley, H., Hodkinson, P., and Malcolm, J. (2002). Non-formal learning: Mapping the conceptual terrain: A consultation report. University of Leeds Lifelong Learning Institute, Leeds. Collings, D.G. (2014). Toward mature talent management: Beyond shareholder value. Human Resource Development Quarterly, 25(3), 301‒319. Collings, D.G., and Mellahi, K. (2009). Strategic talent management: A review and research agenda. Human Resource Management Review, 19(4): 304‒313. Conger, J.A. (2010). Developing leadership talent: delivering on the promise of structured programmes. In R. Sitzer and B.E. Dowell (eds) Strategy-Driven Talent Management (pp. 281‒312). San Francisco, CA: Jossey-Bass. Cooke, F.L. (2011). Talent management in China. In H. Scullion and D.G. Collings (eds) Global Talent Management (pp. 132‒154). New York and Abingdon, VA: Routledge. Cooke, F.L. (2012). Human Resource Management in China, New Trends and Practices. London: Routledge. Cooke, F.L., Saini, D.S., and Wang, J. (2014). Talent management in China and India: A comparison of management perceptions and human resource practices. Journal of World Business, 49: 225‒235. Crowley-Henry, M. and Heaslip, G. (2014). Short-term international assignments. Military perspectives and implications for international human resource management.  European Management Journal, 32(5): 752‒760. D’Annunzio-Green, N. (2008). Managing the talent management pipeline. International Journal of Contemporary Hospitality Management, 20(7): 807‒819. Day, D.V. (2010). The difficulties of learning from experience and the need for deliberate practice. Industrial and Organizational Psychology, 3(1): 41‒44. Devins, D., and Gold, J. (2014). Re-conceptualising talent management and development within the context of the low paid.  Human Resource Development International,  17(5): 514‒528. Dickmann, M., Brewster, C., and Sparrow, P.R. (eds) (2016). International Human Resource Management: Contemporary Issues in Europe. London: Routledge. Dierdorff, E.C., and Morgeson, F.P. (2007). Consensus in work role requirements: The influence of discrete occupational context on role expectations. Journal of Applied Psychology, 92(5): 1228‒1241. Dierdorff, E.C., Rubin, R.S., and Morgeson, F.P. (2009). The milieu of managerial work: An integrative framework linking work context to role requirements. Journal of Applied Psychology, 94(4): 972‒988. Downs, Y., and Swailes, S. (2013). A capability approach to organizational talent management. Human Resource Development International, 16(3): 267‒281. Dries, N. (2013). The psychology of talent management: A review and research agenda. Human Resource Management Review, 23(4): 272‒285. Dugan, B., and O’Shea, P. (2014) Leadership development: growing talent strategically. SHRM-SIOP Science of HR White Paper Series. February. El Bouhdidi, J., Ghailani, M., Abdoun, O., and Fennan, A. (2010). A new approach based on a multi-ontologies and multi-agents system to generate customized learning paths in an e-learning platform. International Journal of Computer Applications, 12(1): 1‒6. Eraut, M. (2004). Informal learning in the workplace. Studies in Continuing Education, 26(2): 247‒273. Ernst & Young (2010). Managing Today’s Global Workforce: Evaluating Talent Management to Improve Business. London: Ernst & Young. Evans, P.A., Smale, A., Björkman, I., and Pucik, V. (2011). Leadership development in multinational firms. In J. Storey (ed.) Leadership in Organisations: Current Issues and Key Trends (pp. 207‒222). London: Routledge. Farndale, E., Scullion, H., and Sparrow, P. (2010). The role of the corporate HR function in global talent management. Journal of World Business, 45(2): 161‒168.

GARAVAN 9781781954171 PRINT.indd 439

22/09/2017 16:32

440  Handbook of international human resource development Festing, M., and Eidems, J. (2011). A process perspective on transnational HRM systems: A dynamic capability-based analysis. Human Resource Management Review, 21(3): 162‒173. Findlay, P., and Warhurst, C. (2011). Union learning funds and trade union revitalization: A new tool in the toolkit? British Journal of Industrial Relations, 49(1): 115‒134. Frambach, J.M., Driessen, E.W., Chan, L.C., and van der Vleuten, C.P. (2012). Rethinking the globalisation of problem-based learning: How culture challenges self-directed learning. Medical Education, 46(8): 738‒747. Friday, E., Friday, S.S., and Green, A.L. (2004). A reconceptualization of mentoring and sponsoring. Management Decision, 42(5): 628‒643. Fu, P.P., Wu, R., Yang, Y., and Ye, J. (2007). Chinese culture and leadership. In J. Chhokar, F. Brodbeck and R. House (eds) Culture and Leadership across the World: The Globe Book of in-depth Studies of 25 Societies (pp. 875‒907). London: Taylor & Francis. Gallardo-Gallardo, E., Dries, N., and González-Cruz, T.F. (2013). What is the meaning of ‘talent’ in the world of work? Human Resource Management Review, 23(4): 290‒300. Gandz, J. (2006). Talent development: The architecture of a talent pipeline that works. Ivey Business Journal Online, January/February, pp. 1‒4. Garavan, T.N., Carbery, R., and Rock, A. (2012). Mapping talent development: Definition, scope and architecture. European Journal of Training and Development, 36(1): 5‒24. Garavan, T.N., Hogan, C., and Cahir-O’Donnell, A. (2009). Developing Managers and Leaders. Dublin: Gill & MacMillan. Garazonik, R., Nethersell, G., and Spreier, S. (2006). Navigating through the new leadership landscape. Leader to Leader, 39, Winter: 30‒39. Gomes, E., Sahadev, S., Glaister, A.J., and Demirbag, M. (2015). A comparison of international HRM practices by Indian and European MNEs: Evidence from Africa.  The International Journal of Human Resource Management, 26(21): 2676‒2700. Groysberg, B. (2010). Chasing Stars: The Myth of Talent and the Portability of Performance. Princeton, NJ: Princeton University Press. Gureckis, T.M., and Markant, D.B. (2012). Self-directed learning: a cognitive and computational perspective. Perspectives on Psychological Science, 7(5): 464‒481. Higgins, M., and Kram, K.E. (2001). Reconceptualizing mentoring at work: A developmental network perspective. The Academy of Management Review, 26(2): 264‒288. Higgins, M., Dobrow, S.R., and Roloff, K.S. (2010). Optimism and the boundaryless career: The role of developmental relationships. Journal of Organizational Behavior, 31(5): 749‒769. Hirsh, W. (2009). Talent Management: Practical Issues in Implementation. Brighton: Institute for Employment Studies. Hofstede, G. (2007). Culture: Organisations, personalities and nations. European Journal of International Management, 1(1/2): 14‒22. Hollenbeck, G.P., McCall, M., and Silzer, R. (2006). Do competency models help or hinder leadership development? A debate. The Leadership Quarterly, 17(4): 398‒413. Holstein, J.A., and Gubrium, J.F. (2000).  The Self We Live By: Narrative Identity in a Postmodern World. New York: Oxford University Press. Horwitz, F., Budhwar, P., and Morley, M.J. (2015). Future trends in human resource management in emerging markets. In F. Horwitz and P. Budhwar (eds) Handbook of Human Resource Management in Emerging Markets (pp. 470‒488). Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing. Huselid, M.A., Beatty, R.W., and Becker, B.E. (2005). ‘A players’ or ‘A positions’? The ­strategic logic of workforce management. Harvard Business Review, 83(12): 110‒117. Iles, P., Chuai, X., and Preece, D. (2010). Talent management and human resource management in multinational companies in Beijing: Definitions, differences and drivers. Journal of World Business, 45(2): 179‒189. Isrealite, L. (2010). Thinking about talent. In: L. Israelite (ed.) Talent Management Strategies for Success from Six Leading Companies (pp. 1‒14). Boston, MA: ASTD Press. Johns, G. (2006). The essential impact of context on organizational behavior. Academy of Management Review, 31(2): 386‒408.

GARAVAN 9781781954171 PRINT.indd 440

22/09/2017 16:32

IHRD and global talent development  ­441 Kaye, B. (2002). Up Is Not the Only Way: A Guide to Developing Workforce Talent. Palo Alto, CA: Consulting Psychologists Press. Kim, S., and McLean, G.N. (2012). Global talent management necessity, challenges, and the roles of HRD. Advances in Developing Human Resources, 14(4): 566‒585. Lahti, R.K. (1999). Identifying and integrating individual level and organizational level core competencies. Journal of Business and Psychology, 14(1): 59‒75. Lewis, R.E., and Heckman, R.J. (2006). Talent management: A critical review. Human Resource Management Review, 16(2): 139‒154. Lim, D.H., and Morris, M.L. (2009). Learner and instructional factors influencing learning outcomes within a blended learning environment. Educational Technology & Society, 12(4): 282‒293. Lombardozzi, C., and Casey, A. (2008). The impact of developmental relationships on the learning of practice competence for new graduates. Journal of Workplace Learning, 20(5): 297‒315. Mäkelä, K., Björkman, I., and Ehrnrooth, M. (2010). How do MNCs establish their talent pools? Influences on individuals’ likelihood of being labeled as talent. Journal of World Business, 45(2): 134‒142. Marsick, V.J., and Watkins, K.E. (2001). Informal and incidental learning. In S.B. Merriam (ed.) The New Update on Adult Learning Theory, New Directions for Adult and Continuing Education, No. 89 (pp. 25‒34). San Francisco, CA: Jossey-Bass. Mathew, A. (2005). Talent management practices in select organisations in India. Global Business Review, 16(1): 137‒150. Maycock, E., and Ikuomola, O. (2015). Learning and talent development: A review in context. International Journal of Advanced Research in Engineering & Management, 1(2): 98‒111. McCall, M., Lombardo, M., and Morrison, M. (1988). The Lessons of Experience: How Successful Executives Develop on the Job. Lexington, MA: Lexington Books. McCauley, C.D. and Douglas, C.A. (2004). Developmental relationships. In C.D. McCauley and E. van Vestor (eds) The Centre for Creative Leadership Handbook of Leadership Development (pp. 85‒115). San Francisco, CA: Jossey-Bass. McDonnell, A. (2011). Still fighting the ‘war for talent’? Bridging the science versus practice gap. Journal of Business and Psychology, 26(2): 169‒173. McDonnell, A., and Collings, D.G. (2011). The identification and evaluation of talent in MNEs. In H. Scullion and D.G. Collings (eds) Global Talent Management (pp. 56‒73). London: Routledge. McDonnell, A., Lamare, R., Gunnigle, P. and Lavelle, J. (2010). Developing tomorrow’s leaders: Evidence of global talent management in multinational enterprises.  Journal of World Business, 45(2): 150‒160. Mellahi, K., and Collings, D.G. (2010). The barriers to effective global talent management: The example of corporate elites in MNEs. Journal of World Business, 45(2): 143‒149. Minbaeva, D., and Collings, D.G. (2013). Seven myths of global talent management. The International Journal of Human Resource Management, 24(9): 1762‒1776. Missoni, E., and Alesani, D. (2013).  Management of International Institutions and NGOs: Frameworks, Practices and Challenges. London: Routledge. Moss Kanter, E. (2013) How will changing demographics in the US influence business in the coming decade? Wall Street Journal, November 29 http://www.wsj.com/articles/SB10001424 052702303562904579228000262387472 (accessed May 18, 2016). Novations (2009). Talent Development Issues Study (pp. 1‒20). Long Island, NY: Novations Group. O’Neil, J., and Marsick, V.J. (2014). Action learning coaching.  Advances in Developing Human Resources, 16(2): 202‒221. Ohlott, P.J. 2004. Job assignments. In C.D. McCauley and E. van Velsor (eds) Handbook of Leadership Development (2nd edition) (pp. 127‒159). San Francisco, CA: Jossey-Bass. Ready, D.A., and Conger, J.A. (2007). Make your company a talent factory. Harvard Business Review, 85(6): 68‒77.

GARAVAN 9781781954171 PRINT.indd 441

22/09/2017 16:32

442  Handbook of international human resource development Redford, K. (2005). Shedding light on talent tactics. Personnel Today, 26: 22. Reilly, P. (2008). Identifying the right course for talent management. Public Personnel Management, 37(4): 381‒388. Rock, A.D., and Garavan, T.N. (2006). Reconceptualizing developmental relationships. Human Resource Development Review, 5(3): 330‒354. Ruddy, T., and Anand, P. (2010). Managing talent in global markets. In R. Silzer and B.E. Dowell (eds) Strategy-Driven Talent Management: A Leadership Imperative (pp. 549‒594). San Francisco, CA: Jossey-Bass. Sadler-Smith, E. (2006). Learning and Development for Managers. Oxford: Blackwell Publishing. Sandberg, J. (2000). Understanding human competence at work: An interpretative approach. The Academy of Management Journal, 43(1): 9‒25. Schuler, S.R. Jackson, S.E., and Ibraiz, R.T. (2011a). Framework for global talent management: HR actions for dealing with global talent challenges. In H. Scullion and D.G. Collings (eds) Global Talent Management (pp. 17‒36). New York: Routledge. Schuler, S.R, Jackson, S.E., and Tarique, I. (2011b). Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of World Business,  46(4): 506‒516. Scullion, H., and Collings, D.G. (2011). Global Talent Management. New York: Routledge. Scullion, H., and Linehan, M. (2005). International Human Resource Management: A Critical Text. London: Palgrave. Sheehan, M.N., Garavan, T., and Carbery, R. (2014). Sustainability, corporate social responsibility and HRD. European Journal of Training and Development, 38(5): 370‒386. Silzer, R.F., and Church, A.H. (2010). Identifying and assessing high potential talent: Current organizational practices. In R. Silzer and B.E. Dowell (eds) Strategy-Driven Talent Management: A Leadership Imperative (pp. 213‒281). San Francisco, CA: Jossey-Bass. So, H.J., and Bonk, C.J. (2010). Examining the roles of blended learning approaches in computer-supported collaborative learning (CSCL) Environments: A Delphi study. Educational Technology & Society, 13(3): 189‒200. Somaya, D., and Williamson, I. (2011). Moving beyond the ‘war for talent’. In H. Scullion and D.G. Collings (eds) Global Talent Management (pp. 74‒86). New York: Routledge. Stahl, G., Björkman, I., Farndale, E., Morris, S.S., Paauwe, J., Stiles, P., and Wright, P. (2012a). Six principles of effective global talent management.  Sloan Management Review, 53(2): 25‒42. Stahl, G.K., Björkman, I., and Morris, S. (eds.) (2012b).  Handbook of Research in International Human Resource Management. Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing. Stewart, J., and Rigg, C. (2011). Learning and Talent Development. Basingstoke: McGraw-Hill. Tansley, C. (2011). What do we mean by the term ‘talent’ in talent management? Industrial and Commercial Training, 43(5): 266‒274. Tansley, C., and Tietze, S. (2013). Rites of passage through talent management progression stages: An identity work perspective. The International Journal of Human Resource Management, 24(9): 1799‒1815. Tansley, C., Harris, L., Stewart, J., and Turner, P. (2006), Talent management: Understanding the dimensions. In CIPD (ed.), Change Agenda (pp. 1‒16). London: CIPD. Thunnissen, M., Boselie, P., and Fruytier, B. (2013). A review of talent management: ‘Infancy or adolescence?’.  The International Journal of Human Resource Management,  24(9): 1744‒1761. Tornow, W.W., and Tornow, C.P. (2001). Linking multi-source feedback content with organizational needs. In D. Bracken, C.W. Timmreck and A.H. Church (eds) The Handbook of Multisource Feedback (pp. 48‒62). San Francisco, CA: Jossey-Bass. Vaiman, V., Scullion, H., and Collings, D. (2012). Talent management decision making. Management Decision, 50(5): 925‒941. van der Sluis, L., and van de Bunt-Kokhuis, S. (2009). Competing for Talent. Van Gorcum: Assen.

GARAVAN 9781781954171 PRINT.indd 442

22/09/2017 16:32

IHRD and global talent development  ­443 van Velsor, E., and Guthrie, V.A. (1998). Enhancing the ability to learn from experience. In C. McCauley, R. Moxley and E. van Velsor (eds) The Center for Creative Leadership Handbook of Leadership Development (pp. 242‒261). San Francisco, CA: Jossey-Bass. Wang-Cowham, C. (2011). Developing talent with an integrated knowledge sharing mechanism. An exploratory investigation from a Chinese human resource managers’ perspective. Human resource development international, 14(4): 391‒407. Warhurst, R.P. (2013). Learning in an age of cuts: Managers as enablers of workplace ­learning. Journal of Workplace Learning, 25(1): 37‒57. Wilde, K.D. (2010). In memoriam 70/20/10. Talent Management Magazine, 16. Wilson, M.S., and van Velsor, E. (2011). A new terrain of leadership development: An Indian perspective. In S. Verma (ed.) Towards the Next Orbit: Corporate Odyssey (pp. 267‒284). Delhi: Sage Publications. Wilson, M.S., and Yip, J. (2010). Grounding leader development: Cultural perspectives. Industrial and Organizational Psychology, 3(1): 52‒55. Wilson, M.S., van Velsor, E., Chandra, A., and Criswell, C. (2011). Grooming Top Leaders: Cultural Perspectives from China, India, Singapore and the United States. Greensboro, NC: Centre for Creative Leadership. Yost, P.R., and Mannion-Plunkett, M. (2010). Developing leadership talent through experiences. In R. Silzer and B.E. Dowell (eds) Strategy-Driven Talent Management (pp. 313‒349). San Francisco, CA: Jossey-Bass.

GARAVAN 9781781954171 PRINT.indd 443

22/09/2017 16:32

GARAVAN 9781781954171 PRINT.indd 444

22/09/2017 16:32

PART IV RESEARCHING IHRD

GARAVAN 9781781954171 PRINT.indd 445

22/09/2017 16:32

GARAVAN 9781781954171 PRINT.indd 446

22/09/2017 16:32

21. Researching IHRD: context, processes and people Anthony McDonnell

INTRODUCTION In recent years, management research (for example, strategic management) has received some attention and criticism for limited methodological rigour (for example, Boyd et al., 2013). However, it is clear that methodological advancements have occurred in much management research whereby studies tend to now involve more rigorous research designs and incorporate the use of a greater diversity of quantitative and, increasingly, qualitative methods. This summation of improved methodological approaches in management research is one that can also arguably be applied to human resource development (HRD). Given that cross-cultural and country management studies only started to increase over the past two decades and that HRD can be traced back to the mid-1960s, the limited development of international HRD (IHRD) as a distinct body of work is unsurprising. While there is little doubt that the situation has improved immeasurably, the international dimension still receives comparatively less attention. Part of the reason for this may be one of resources and the difficulty in conducting international research. Engaging in international or cross-country research brings many additional complexities and challenges that domestic focused research does not face. This chapter provides an overview and engages with some of the foremost issues and challenges faced by scholars in the IHRD research domain. With any new development, setting a strong and sound foundation is imperative to it becoming long-lasting. “Research built on a shaky foundation has the potential to be nothing more than castles in the sand” (Boyd et al., 2013, pp. 11‒12). Consequently, the more comprehensive, reliable and valid the data that are collected and analysed, the more confident we can be in terms of the conclusions drawn. Considering that there are numerous methodologies which inevitably bring differential challenges the focus of this chapter will be on a small number of salient issues related to quantitative research. A recent review by Garavan and Carbery (2012) on IHRD illustrates that, surprisingly, quantitative methods do not encompass the majority of papers. This appears at odds with most other 447

GARAVAN 9781781954171 PRINT.indd 447

22/09/2017 16:32

448  Handbook of international human resource development management fields of research and may reflect some of the inherent difficulties from cross-country surveys. It is unfortunately beyond the scope of the chapter to incorporate cross-country and cultural qualitative methodologies but it is important to note the importance of this type of research in advancing IHRD. Whilst dependent on the research question, qualitative approaches are likely to be particularly important given IHRD research is still in its infancy of development. There are some useful articles for scholars wishing to address IHRD research questions that are best done by a qualitative methodology (for example, Teagarden et al., 1995; Marschan-Piekkari and Welch, 2004). Before moving specifically to the role of quantitative methods in advancing this research stream it is important to reiterate a key tenet of the first chapter in this collection regarding the lack of clarity over the boundaries of IHRD. Without parameters on what should be included under the ‘umbrella’ of IHRD discussions of methodology are arguably of far less consequence. For the specific purposes of this chapter, IHRD is viewed as encompassing the way that MNCs (that is, firms that operate across country borders) develop their employees and build human capital and (adopting a more comparative aspect), analysing and understanding why HRD differs across countries. While far from being an exhaustive discussion of methodological issues and challenges in undertaking quantitative data collection in IHRD the proceeding content focuses on three critical areas. First, the use of equivalent measurement and construct characteristics is discussed. Second, the issue of utilizing appropriate sampling frames is considered. Finally, the area of survey administration is discussed. Rather than seek to identify all of what is wrong, the chapter attempts to outline some of the most pertinent issues and provides some suggestions on ways of dealing with them.

DEVELOPING A COMMON RESEARCH DESIGN – THE EQUIVALENCE OF MEASURES We in the organizational sciences do seem to have a fascination with data analysis, and this is not to be discouraged. When attention to data analysis draws attention away from the ways in which the data were generated, however, we have a problem. It is our opinion that good analysis is unlikely to fix bad data. Said another way, if you have bad data, you have a design problem, not an analysis problem. (Vandenberg and Cortina, 2013, p. 499)

According to de Leeux, Hox and Dillman (2008, p. 1), “the idea of conducting a survey is deceptively simple”. The reality is however quite

GARAVAN 9781781954171 PRINT.indd 448

22/09/2017 16:32

Researching IHRD: context, processes and people  ­449 different. Conducting a high quality, valid and reliable survey is without question challenging. Moving a survey to an international or comparative domain increases the research challenge immeasurably. Schaffer and Riordan (2003) observed that conducting comparative studies requires efforts that go beyond that required in single country studies. The most obvious aspect that cross-country research involves that is not the case in a single country study is the fact that different cultures and perspectives will inevitably exist. Consequently, being able to adequately deal with cultural and institutional differences (for example, expected ethical standards, norms of high quality research) is a foremost issue to be addressed. Due to different countries and cultures viewing life differently, measures will often need to be considered within this vacuum. Does a measure conceived in one culture mean the exact same thing in another? To make valid, reliable and generalizable conclusions common research designs are vital. This requires due cognizance being provided to the case of comparable or equivalent measures. In other words, there is a need for measures used in cross-country studies to be relevant and understood by participants within given countries but which allow comparative analysis to also take place (Harkness, 2008; 2010). This does not merely mean that one engages in effective translation of a measure developed in one country to the language of the other country although this is imperative if different languages are spoken in the different contexts under investigation. The issue of conceptual and scaling equivalence must also be concerned and should be treated no less importantly than linguistic equivalence. Practice developed over time suggests that to ensure semantic and linguistic equivalence of measures researchers should employ the t­ ranslation/ back translation technique (Hui and Triandis, 1985; Schaffer and Riordan, 2003; Cascio, 2012). This technique involves a bilingual expert (ideally more than one expert) translating each survey item from the original language to the necessary language and then a different individual, who has not seen the original survey items, translating it back to the original language. The two versions are then checked for consistency. If conformity fails to be established then the item may need to be re-worded or potentially removed from the instrument. To have translation equivalence, the meaning of each item needs to be consistent amongst respondents from each culture or country post translation taking place. Conceptual equivalence is about ensuring that the same conceptual item is actually being tested across different cultures. In other words, conceptual equivalence is about ensuring that the meanings of specific constructs are the same across cultures (Riordan and Vandenberg, 1994). It is imperative to show that the attributes being measured in a study share a similar meaning across cultures. This is viewed as something that has

GARAVAN 9781781954171 PRINT.indd 449

22/09/2017 16:32

450  Handbook of international human resource development received far too little attention in international and comparative management research (Schaffer and Riordan, 2003; Cascio, 2012). House, Wright and Aditya (1997) provide an example of poor conceptual equivalence with respect to considering the concept of ‘leadership’ in the context of North American and Asian countries. They observe that leadership in the US refers to organizational leadership but is typically associated with political leadership in Asia. Consequently, there are significantly different frames of reference being used in this scenario. Asia, like Europe encompasses a wide range of different countries and cultures which means there is little value in categorizing all countries under the bracket of Asia like it represents one equivalent entity. Thus, conceptual equivalence is vital to being confident that a shared meaning existed between study participants so that just conclusions and generalizations can be made. Scaling equivalence refers to whether participants from different cultures interpret the scales used in a questionnaire in the same way. The issue of scaling equivalence appears to also have received insufficient attention in international and comparative management research with assumptions often made that various cultural groups treat scales (for example, Likert scale) similarly. Schaffer and Riordan (2003) point out an example where differences have been found to exist in the case of individualistic and collectivist samples. Specifically, collectivist samples have been found to be more likely to select the middle or undecided option in Likert scales. Relatedly, Cascio and Aguinis (2011) remark that, the common Anglo world survey scale response, ‘neither agree nor disagree’ may be viewed as slight agreement in one culture but indifference in another. Consequently, there is a need for attention to these issues in designing survey instruments for IHRD with a key question for researchers being, will respondents treat the scale options in a similar fashion? Given that HRD and IHRD research is relatively recent, conceptual and scaling equivalence are especially important. Pfeffer (1993) observed that new fields of research inevitably lack consensus. Boyd et al. (2013) advise that in new research fields it is especially important to expect to have your measures challenged by reviewers even where a measure may be well cited. They highlight the continuing reliance and danger of single item measures (also see Ketchen, Boyd and Bergh, 2008 in strategic management and Crook et al., 2010 for discussion on entrepreneurship measures). They provide an interesting discussion around construct measurement in early stage research fields (though specifically writing on strategic management). Specifically, they note the dangers of strong adherence to particular measures in early stage research as it may lead to an institutionalization of poor measures. On the other hand, they raise the difficulty in integrating cross-study findings if measures are changed continually. As a result,

GARAVAN 9781781954171 PRINT.indd 450

22/09/2017 16:32

Researching IHRD: context, processes and people  ­451 there is a need for due care and consideration in the initial development of measures and in slavishly sticking to them or continuously revising them (Boyd et al., 2013). In summary, measures that are developed in, or from, one culture that will be used in another need to be assessed for translation, conceptual and scaling equivalence. Without establishing equivalence in cross-cultural studies, empirical results and theoretical inferences are fraught with the danger of bias. One means of establishing an appropriate research design in crosscountry and cultural IHRD research and thus addressing concerns about equivalence is the use of country-specific literature rather than solely developing constructs on extant domestic literature and then extending to another culture. Second, the use of culturally appropriate teams whereby those charged with research design (including instrument development and method of administration) encompass individuals from the different jurisdictions in which the study will be conducted makes much sense. While the development of effective cross-cultural research teams is both challenging and demanding, doing so has enhanced potential for one to make more valid and reliable interpretations (see Teagarden et al., 1995 and EasterbySmith and Malina, 1999 for useful reviews of cross-cultural, collaborative research team challenges and recommendations). Third, there should be greater use of piloting. The idea of piloting draft survey instruments is well established in quantitative research, however Smith (2004) suggests that this is relatively uncommon in cross-country studies. There is little doubt that the cost of ‘testing’ draft surveys in the different countries of interest will add considerable time and financial costs but there are considerable benefits from doing so as the final questionnaire is likely to have increased levels of equivalence. Undertaking such pilot testing in different countries will be useful in assisting translation equivalence and even more so with respect to conceptual and scaling equivalence. The three suggestions highlighted are not meant to be viewed as an exhaustive means of ensuring equivalence but they represent important steps and options.

DEVELOPING THE POPULATION AND SAMPLING STRATEGY The issue of population development and the ability to generalize results is often only given very cursory attention by researchers in the methodology section of papers and thus there must be some concern at times over the appropriateness of conclusions drawn. Common treatment of the issue of generalizability in the international human resource management field

GARAVAN 9781781954171 PRINT.indd 451

22/09/2017 16:32

452  Handbook of international human resource development is usually by way of a line or two towards the end of a paper about the limitations of generalizability. This situation appears to also be very much the case in IHRD papers when one evaluates the empirical papers that were incorporated in the most recent IHRD review paper by Garavan and Carbery (2012). A key issue that impacts on generalizability is the population that the study draws from and the sample selected. It appears that convenience sampling dominates which raises major questions over the validity of results. External validity of results is at great risk if the selected sample fails to accurately depict the total population. This inevitably raises question marks over how generalizable the findings can be. [M]ore important [than the response rate] is that the respondents be representative of the population being studied – that they are not systematically different in any meaningful way from the overall group. (Baruch and Holtom, 2008, p. 1153)

In cross-country studies, the sampling strategy employed needs to be as similar as can be across countries to facilitate valid interpretations of any differences that exist between the populations. Hader and Gabler (2003) highlight and propose the need for more comprehensive sampling frames to be generated by scholars. In other words, they call for greater attention to be placed on how the study population is developed. Much has been said about lower response rates and the negative impact on statistical power and how bias may be introduced (Rogelberg et al., 2003) whereas less has been made on how the population used in sampling originates and the potential weaknesses of research that pays insufficient attention to this issue. While the focus here is on quantitative research, it is also of note in qualitative studies because recent bibliometric analysis of international business research by Collinson and Rugman (2010) identified a strong bias of case-study work towards the most well-known, global and largest US owned manufacturing MNCs. The limitations of research studies focused on the management practices of MNCs is an issue that colleagues and I have also highlighted in recent years in conducting a large international study into the HRM practices of MNCs in different countries (see McDonnell et al., 2007; Edwards et al., 2008; McDonnell et al., 2011; Edwards, Marginson and Ferner, 2013). What does this all mean for research practice? Rather than using the most easily available company listing source which appears common, greater time and effort should be placed on understanding the merits and drawbacks of the list being used and whether additional lists are required, and if extra work needs to be put in to ensure a more comprehensive and

GARAVAN 9781781954171 PRINT.indd 452

22/09/2017 16:32

Researching IHRD: context, processes and people  ­453 accurate population. When engaging in international and comparative studies this takes on even more importance in terms of whether a similar process has taken place which will enable comparisons to be made across samples. Consequently, a vital early step in undertaking international HRD research is to agree on a process of population development. This should involve clearly defining the population of interest and discussing and agreeing on how the population is developed based on the aims and parameters of the study. If the aim is to conduct a representative study of MNCs then the ideal scenario would be to draw on a range of sources to develop the population and undertake a series of cross-checking (see McDonnell et al., 2007, Edwards et al., 2008; McDonnell et al., 2011; Edwards, Marginson and Ferner, 2013 for additional discussion of this point). This process will be costly and time-consuming and arguably even-more so in developing countries where company details may be even more difficult to obtain. It will however add to data quality. Cascio (2012) echoes the calls made of scholars in the INTREPID project (INTREPID is an international research collaboration examining the employment policies and practices of multinational companies MNCs in a series of countries – see Edwards, Marginson and Ferner, 2013 for further detail) in calling on scholars engaged in international HRM survey research to: [A]t the very least, use multiple databases and multiple research methods to define and list populations of interest, and use cross-checks to assure to the reliability and validity of the sampling unit in questions. (Cascio, 2012, p. 2542)

Moreover, through more thorough attention to the development of the total population researchers will be better placed to assess issues of nonresponse bias (Rogelberg et al., 2003; Cascio, 2012). Doing so will allow one to analyse respondents against non-respondents more accurately which will better enable a more just interpretation of generalizability. A related issue to that of population development is the choice of sampling because such studies are usually beyond the scope of researchers. The use of a stratified random sample as employed in the INTREPID study is one means in which the risk of external validity can be reduced. This involves selecting subsets of the population which are of key importance and interest. A random sample is then selected from each stratum with the aim being to select a number in each stratum that compares to the total population. These are then pooled together to form your total sample. Steinmetz et al. (2011) discuss the issue of sampling in the context of Cranet, the comparative HRM study, and suggest that a way in which their own network may look at improving the sampling standards would be by adopting a multi-stage process. Specifically, they propose the idea of

GARAVAN 9781781954171 PRINT.indd 453

22/09/2017 16:32

454  Handbook of international human resource development constructing a sampling frame of macro-units (for example, postal areas, counties) which would be organized into strata of key population characteristics. The next stage would involve random sampling from these strata. They also suggest that a random sample of macro-units and looking to conduct a census of all organizations within that strata as a possibility. The previous section discussed the issue of equivalence which also needs due consideration by researchers in the context of sampling equivalence. For instance, there is a need to reduce the effects of sample differences which are particularly relevant to the primary purpose of the study. Schaffer and Riordan (2003) raise a range of examples in both a macro and micro international sense which have relevance for IHRD. For example, whether organizations in the samples are from similar or different industries, are they of different sizes or are the workforce demographics similar – employees from one sample may be predominantly expatriates whereas the other sample mainly incorporates local or host country staff. Identifying equivalence of samples in terms of the effects of sample differences like these will be particularly challenging in IHRD research, but if these factors are taken into consideration and controlled for, we can have greater confidence that the differences found are due to the hypothesized effects. Harzing, Reiche and Pudelko (2012) have recommended the use of matched samples along with the inclusion of relevant control variables to improve internal validity and the use of stratified random sampling to aid external validity. Thus, there are different options available which should be considered in the context of each study and the resources available. By paying greater attention to how the population is developed and the sampling strategy adopted, internal validity (the extent to which an independent variable can be interpreted as the cause of a change in the dependent variable) and external validity will be improved.

ADMINISTERING THE SURVEY The final key methodological challenge in IHRD that is considered here relates to the administration of the survey. Again, the message of consistency and equivalence is important. In this context, there should be considerable procedural equivalence in terms of data collection and timing. Will the same method of administration be used across countries? If not, has there been due consideration and analysis of whether findings may result from the different methods of administration? These two questions should be engaged with by researchers at an early stage. Ideally there should be considerable uniformity in survey administration procedures and explicit instructions should be provided in a relatively consistent manner across

GARAVAN 9781781954171 PRINT.indd 454

22/09/2017 16:32

Researching IHRD: context, processes and people  ­455 samples (Schaffer and Riordan, 2003). Consequently, the same method of distributing the questionnaire may ideally occur, a similar cover letter and instructions provided to the targeted respondents, a similar process followed in terms of following up non-response and so forth. However doing so as a given without due consideration being given to the specific study of focus and the resources available is not advisable. There may need to be some adaptations due to cultural idiosyncrasies or because the ideal means of conducting the study is impossible due to time or financial constraints. Further considerations in determining the most appropriate form(s) of administration may include the potential response rate from each method in each country. Existing research demonstrates significant differences in response rates between different methods of administration, as well as across different occupational groups and countries (Harzing, 1997, 1999; Sheehan, 2001; Cycota and Harrison, 2006). There has also been much debate about the use of incentives and the cosmetic nature of the structure of surveys. Much of the extant literature on these topics has been domestic­ ally focused. Hence, these are areas that need to be considered within the context of any given study. For example, a particular incentive to complete a survey may be useful for a particular occupational group in one country but serve little to no purpose in another context. Furthermore, Harzing, Reiche and Pudelko (2012) note that the use of particular colours and pictures in a survey in one culture can mean something entirely different elsewhere. There is therefore a range of minute, practical but important issues that deserve due consideration in research design. In an ideal scenario there should be full consistency in approach to survey administration but there are many constraints that may prevent this from taking place fully in practice. All studies have limitations making it especially important for researchers to critically reflect upon the procedures followed and looking at providing greater documentation and description of the process followed in publications. This can allow greater determinations of generalizability to be made. In saying that, there are word-count constraints and there may be concern amongst scholars, particularly those at the early career stage, that by engaging more fully with the research limitations in one’s work that there may be a negative impact on the paper’s publication probability. The establishment of comparable data collection procedures minimizes threats to validity. While maintaining equivalence in data collection procedures would appear straightforward, differences across countries in regulation (e.g., whether or not telephone interviews are allowed), cultural norms (e.g., cultural differences in responsiveness to telephone, in-person, and mail survey administration), mail systems (e.g., reliability and timeliness of mail delivery), etc., often lead to differences in data collection procedures. (Hult et al., 2008, p. 1037)

GARAVAN 9781781954171 PRINT.indd 455

22/09/2017 16:32

456  Handbook of international human resource development Given the turbulent global economic conditions of recent times, the issue of survey timing is vividly highlighted. Schaffer and Riordan (2003) have identified the potential impact on the quality of data in cross-cultural research if there are significant economic changes during the period of data collection. Ideally, the suggestion is that studies should be conducted in a similar timeframe. This is an issue that requires further thought and consideration because it is not so straightforward. Some research conducted pre and during the most recent global financial crisis (GFC) is likely to be faced with potential criticisms from reviewers who will question the relevance given such significant ‘external events’. Some aspects of IHRD would arguably be more susceptible to changes as a result of the major external environment impact like the GFC. For example, it could be proposed that training and development investment may be an area that would be especially likely to have been negatively impacted from the GFC whereas the existence of a formal management development programme may be less impacted, though perhaps the make-up of the programme would be. Consequently, there is a need for critical and fair reflection of this issue on a case by case basis rather than adopting a straightjacket approach on whether different timelines would have impacted results or strike them no longer useful. External events like the GFC are not typically predicted well in advance so this is a challenging issue. There appears to be some merit in introducing a timing variable into the lines of analysis to establish if any differences can be attributed to the timing of the survey. It is advocated that scholars should consider the issue of appropriate study timeframes in the early stages of project development. What is an appropriate timeframe in which the data should be collected across countries? There is little concrete guidance that can be offered but should be considered on a case by case basis. The Cranet survey seeks to have all country data collection completed within 18 months (Steinmetz et al., 2011). Previously this had been 12 months but due to the expansions of countries involved a decision to extend the timeframe for data collection was made as without doing so would have rendered the administration of the study across all countries unfeasible. The issue of project timing and execution of cross-country research is further impacted by the issue of funding. Cross-national studies inevitably require some level of funding if the research is to be successfully conducted. The availability of supra-national funding sources (for example, European Frameworks) are typically few and far between and are likely to be especially challenging for scholars in the HRM and HRD domain. Securing funding for research to be conducted in other countries and which will involve scholars from other countries can be an especially difficult thing to achieve. Often it may require those involved in different countries to

GARAVAN 9781781954171 PRINT.indd 456

22/09/2017 16:32

Researching IHRD: context, processes and people  ­457 secure their own research for their national node of the study. This can have a significant impact on the ability to collect the data within particular timelines as a team may be unsuccessful in their application or the dates for applications are different to others and so forth. Consequently, the issue of funding and the identification of different scenarios and alternatives is an area that merits great consideration by research teams.

CHALLENGES AND OPPORTUNITIES FOR IHRD A great challenge in moving IHRD research forward and answering today’s complex questions involves us overcoming our inherent discomfort in moving outside our comfort zones. Aguinis and Edwards (2013) suggest that the management discipline could be accused of following an almost ritualistic use of particular methods. Along a similar vein, Kulik (2011, p. 447) remarks that: If we want to address the theoretical questions that are most relevant today, we have to pick fruit that his hanging much higher on the tree, and those questions demand more complex and sophisticated research methodologies. Over time the questions become more interesting, but the challenges of answering those questions become greater, and our standards for evaluating the quality of research get higher.

There is little doubt that Kulik’s (2011) observations are important if there is a desire to push and break beyond existing knowledge bases and, therefore there is merit in scholars considering and reflecting upon them in planning our research programmes. Yet, although there is an onus on researchers to consider more comprehensively the methodological standards applied and how these are described in study write-ups, there is also an onus on reviewers and editors to be more aware of the additional complexity involved in international research and encourage greater discussion of the methodological process and limitations inherent (see Hult et al., 2008 for useful checklist that could be considered by reviewers in determining how data collection equivalence was treated in a paper). Unless there is such support then the opportunity for greater innovation and experimentation in methodological approaches is unlikely to be realized. On the point of support there comes the question whether various professional bodies (for example, AHRD, UFHRD) can play a more important role in conducting high-quality IHRD research. There may, for instance, be a case for such bodies to play a central planning and management role in a large-scale international and comparative research agenda.

GARAVAN 9781781954171 PRINT.indd 457

22/09/2017 16:32

458  Handbook of international human resource development

IMPLICATIONS FOR IHRD RESEARCH AND PRACTICE It is from the use of thorough methodological approaches whereby we can have confidence in the reliability, validity and generalizability of results that IHRD can advance as a key research area. In so doing, the key implication for research is that IHRD can move from being in a position of ‘early childhood’ development to ‘adulthood’. If scholars in this field provide leadership in making such methodological advancements then there may also be positive implications for related fields of research (for example, international HRM, strategic HRM). With the concept of impact appearing to become ever more important, at least in AngloSaxon contexts, there will be a need to push beyond existing boundaries. In saying that, Kulik (2011) sounds a note of caution in discussing the impact of specifically considering the use of multilevel, multi-source and longitudinal research designs in that there is potential to increase rather than reduce the gap between research and practice. She notes that these advanced methods may lead academics to write more complex papers which may further reduce the practical impact of our research. Consequently, while advancing research methods is important to address the increasingly complex research questions that merit investigation it is absolutely imperative that the practitioner or non-academic audience does not become even more isolated.

CONCLUSION There has been little consideration and discussion in terms of HRD journal articles on the methodological challenges and issues in IHRD research. This chapter has focused on a small number of issues of what entails a sound methodology in conducting quantitative international management research. The first aspect that was focused upon in the chapter was around that of equivalence of measures. Linked to this is the need for greater use of conceptual frameworks in organizing and explaining data. Through the use of a conceptual framework there will be greater ability to make inferences about how constructs relate to other constructs (see Cascio and Aguinis, 2011). The second key point discussed surrounded how study populations were developed and samples selected. An argument was made that insufficient attention is paid to such an integral step in the research process. Finally, the chapter considered the administration of international studies noting the difficulty that may exist in pursuing a common strategy across

GARAVAN 9781781954171 PRINT.indd 458

22/09/2017 16:32

Researching IHRD: context, processes and people  ­459 Table 21.1 Useful references surrounding issues and challenges in undertaking IHRD research Authors and year of publication

Focus

Steinmetz et al. (2011) Cascio (2012) Edwards et al. (2013)

Discusses the methodological process  and statistical analysis techniques in international and comparative HRM research through the experience of the Cranet and INTREPID research project Population development, sampling issues  and biases in management research on MNCs

McDonnell et al. (2007) Edwards et al. (2008) Collinson and Rugman (2010) McDonnell et al. (2011) Schaffer and Riordan (2003) Hult et al. (2008) Harkness (2010) Wright et al. (2001) Podaskoff et al. (2003) Chang et al. (2010) Rogelberg and Stanton (2007) Teagarden et al. (1995) Easterby-Smith and Malina (1999)

Instrument design and equivalence issues Common method bias Non-response bias Cross-cultural, collaborative management  research teams

different countries. It is proposed that we cannot always carry out the ‘perfect’ study but that we must seek to be more thorough and be more open and reflective on the research process. There is therefore an onus to ensure methodological rigour in our research so as to make valid interpretations. Citations for articles around these and some additional issues that IHRD researchers may wish to acquaint themselves with and consider when designing their own methodologies are included in Table 21.1. For example, the problem of common method variance which refers to the introduction of bias though key variables being derived from the same participant (see Wright et al., 2001; Podaskoff, MacKenzie and JeongYeon, 2003 and Chang, Witteloostuijn and Eden, 2010) and non-response bias (Rogelberg and Stanton, 2007) were not discussed here but are of great importance because of the acute impact they have on the validity and reliability of data.

GARAVAN 9781781954171 PRINT.indd 459

22/09/2017 16:32

460  Handbook of international human resource development

REFERENCES Aguinis, H. and J.R. Edwards (2013) ‘Methodological wishes for the next decade and how to make wishes come true’, Journal of Management Studies, doi:10.1111/joms.12058. Baruch, Y. and B.C. Holtom (2008) ‘Survey response rate levels and trends in organizational research’, Human Relations, 61 (8), 1139‒1160. Boyd, B.K., D.D Bergh, R.D. Ireland and D.J. Ketchen jr. (2013) ‘Constructs in strategic management’, Organizational Research Methods, 16 (1), 3‒14. Cascio, W. (2012) ‘Methodological issues in international HR management research’, The International Journal of Human Resource Management, 23 (12), 2532‒2545. Cascio, W. and H. Aguinis (2011) Applied Psychology in Human Resource Management (7th edition). New Jersey: Pearson. Chang, S-J., A. Witteloostuijn and L. Eden (2010) ‘From the editors: Common method variance in international business research’, Journal of International Business Studies, 41 (2), 178‒184. Collinson, S. and A. Rugman (2010) ‘Case selection biases in management research: The implications for international business studies’, European Journal of International Management, 4 (5), 441‒463. Crook, T.R., C.L. Shook, M.L. Morris and T.M. Madden (2010) ‘Are we there yet? An assessment of research design and construct measurement practices in entrepreneurship research’, Organizational Research Methods, 13, 192‒206. Cycota, C.S. and D.A. Harrison (2006) ‘What (not) to expect when surveying executives: A meta-analysis of top manager response rates and techniques over time’, Organizational Research Methods, 9 (2), 133‒160. de Leeux, E.D., J.J. Hox and D.A. Dillman (2008) ‘The cornerstones of survey research’, in E.D. de Leeux, J.J. Hox and D.A. Dillman (eds), International Handbook of Survey Methodology (pp. 1‒17), New York and Hove: Psychology Press. Easterby-Smith, M. and D. Malina (1999) ‘Cross-cultural collaborative research: Toward reflexivity’, Academy of Management Journal, 42 (1), 76‒86. Edwards, T., P. Marginson and A. Ferner (2013) ‘Multinational companies in cross-national context: Integration, differentiation and the interactions between MNCs and nation states’, Industrial and Labor Relations Review, 66 (3), 547‒587. Edwards, T., O. Tregaskis, P. Edwards, A. Ferner and P. Marginson (2008) ‘Charting the contours of multinationals in Britain: methodological issues arising in survey research’, Warwick Papers in Industrial Relations, No. 86, Coventry: IRRU/Leicester Business School Occasional Paper, Leicester: De Montfort University. Garavan, T.G. and R. Carbery (2012) ‘A review of international HRD: Incorporating a global HRD construct’, European Journal of Training and Development, 36 (2/3), 129‒157. Hader, S. and S. Gabler (2003) ‘Sampling and estimation’, in J.A. Harkness, F. Van de Viijver and P.P. Mohler (eds), Cross-cultural Survey Methods (pp. 117‒134), New Jersey: John Wiley. Harkness, J.A. (2008) ‘Comparative survey research: goals and challenges’, in E.D. de Leeux, J.J. Hox and D.A. Dillman (eds), International Handbook of Survey Methodology (pp. 56‒77), New York and Hove: Psychology Press. Harkness, J.A. (2010) ‘Cross cultural survey guidelines: VIII. Translation: Language harmonization’. http://ccsg.isr.umich.edu/pdf/08b_LanguageHarmonizationNov2010.pdf (accessed 29 October 2013). Harzing, A-W. (1997) ‘Response rates in international mail surveys: Results of a 22-country study’, International Business Review, 6 (6), 641‒665. Harzing, A-W. (1999) Managing the Multinationals: An International Study of Control Mechanisms, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing. Harzing, A-W., B.S. Reiche and M. Pudelko (2012) ‘Challenges in international survey research: A review with illustrations and suggested solutions for best practice’, European Journal of International Management, 7 (1), 112‒134. House, R.J., N.S. Wright and R.N. Aditya (1997) ‘Cross-cultural research on organizational

GARAVAN 9781781954171 PRINT.indd 460

22/09/2017 16:32

Researching IHRD: context, processes and people  ­461 leadership: a critical analysis and a proposed theory’, in P.C. Earley and M. Erez (eds), New Perspectives on International Industrial and Organizational Psychology (pp. 535‒625), San Francisco, CA: New Lexington Press. Hui, C.H. and H.C. Triandis (1985) ‘Measurement in cross-cultural psychology’, Journal of Cross-Cultural Psychology, 16 (2), 131‒152. Hult, G.T.M., D.J. Ketchen jr., D.A. Griffith, C.A. Finnegan, T.G. Gonzalez-Padron, N. Harmancioglu, Y. Huang, M.B. Talay and S.T. Cavusgil (2008) ‘Data equivalence in cross-cultural international business research: assessment and guidelines’, Journal of International Business Studies, 39, 1027–1044, Ketchen, D., B.K. Boyd and D.D. Bergh (2008) ‘Research methods in strategic management: Past accomplishments and future challenges, Organizational Research Methods, 11 (4), 643‒658. Kulik, C.T (2011) ‘Climbing the higher mountain: the challenges of multi-level, multisource, and longitudinal research designs’, Management and Organization Review, 7 (3), 447‒460. Marschan-Piekkari, R. and Welch, C. (2004) Handbook of Qualitative Research Methods for International Business, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing. McDonnell, A., J. Lavelle, P. Gunnigle and D.G. Collings (2007) ‘Management research on methodological corporations: a methodological critique’, Economic and Social Review, 38 (2), 235‒258. McDonnell, A., H. Russell, G. Sablok, P. Stanton, J. Burgess and T. Bartram (2011) ‘Methodology and research on the human resource practices of multinational enterprises in Australia, Australian Bulletin of Labour, 37 (2), 230‒245. Pfeffer, J. (1993) ‘Barrier to the advance of organizational science: Paradigm development as a dependent variable’, Academy of Management Review, 18 (4), 599‒620. Podaskoff, P., S. MacKenzie and L. Jeong-Yeon (2003) ‘Common method biases in behavioral research: A critical review of the literature and recommended remedies’, Journal of Applied Psychology, 88 (5), 879‒903. Riordan, C.M. and R.J. Vandenberg (1994) ‘A central question in cross-cultural research: Do employees of different cultures interpret work-related measures in an equivalent manner?’ Journal of Management, 20, 643‒671. Rogelberg, S.G. and P. Stanton (2007) ‘Introduction: understanding and dealing with  organizational survey nonresponse’, Organizational Research Methods, 10 (2), 195‒209. Rogelberg, S.G., J.M. Conway, M.E. Sederburg, C. Spitzmuller, S. Aziz and W.E. Knight (2003) ‘Profiling active and passive nonrespondents to an organizational survey’, Journal of Applied Psychology, 88 (6), 1104‒1114. Schaffer, B.S. and C.M. Riordan (2003) ‘A review of cross-cultural methodologies for organizational research: A best practices approach’, Organizational Research Methods, 6 (2), 169‒215. Sheehan, K. (2001) ‘E-mail survey response rates: a review’, Journal of Computer-Mediated Communication, 6 (2), doi: 10.1111/j.1083-6101.2001.tb00117.x. Smith, T.W. (2004) ‘Developing and evaluating cross-national survey instruments’, in S. Presser, J. Rothgeb, M.P. Couper, J.T. Lessler, E. Martin, J. Martin and E. Singer (eds), Methods for Testing and Evaluating Survey Questionnaires (pp. 431‒452), New Jersey: Wiley. Steinmetz, H., C. Schwens, M. Wehner and R. Kabst (2011) ‘Conceptual and methodological issues in comparative HRM research: The Cranet project as an example’, Human Resource Management Review, 21, 16‒26. Teagarden, M.B., M.A. Von Glinow, D.E. Bowen, C.A. Frayne, S. Nason, Y.P. Huo, J.  Milliman, M.E. Arias, M.C. Butler, J.M. Geringer, N-M. Kim, H. Scullion, K.B. Lowe and E.A. Drost (1995) ‘Toward a theory of comparative management research: An idiographic case study of the best international human resources management project’, Academy of Management Journal, 38, 1261‒1287.

GARAVAN 9781781954171 PRINT.indd 461

22/09/2017 16:32

462  Handbook of international human resource development Vandenberg, R.J. and J.M. Cortina (2013) ‘Introduction to the research design feature topic’, Organizational Research Methods, 16 (4), 499‒500. Wright, P.M., T. Gardner, L. Moynihan, H-Y. Park, B. Gerhart and J.E. Delery (2001) ‘Measurement error in research on human resources and firm performance: Additional data and suggestions for future research’, Personnel Psychology, 54 (4), 875‒902.

GARAVAN 9781781954171 PRINT.indd 462

22/09/2017 16:32

Index 70:20:10 strategy 427–8 360 degree feedback 361, 362, 370 Abbott, G. N. 327 Abele, A. E. 342 absorptive capacity 198, 199, 219, 223, 226 Accenture 219–20 access and legitimacy perspective 400 accountability (organisational characteristic) 55 ‘act local’ 33, 44 action inquiry 259, 264 action learning 258, 264, 428 Actors (knowledge transfer factor) 198 Aditya, R. N. 450 adjourning (five-stage developmental model) 384 Adler, P. S. 297 advocacy-based organisations 58 advocating (action inquiry) 259 Aguinis, H. 450, 457 AI (artificial intelligence) 285 Akingbola, K. 62 Alfred, M. 399 Ali, A. J. 60, 69 Allport, G. W. 404 Alvesson, M. 189 AMA (American Management Association) 366 Amable, B. 140 American Society for Training and Development 109 Anand, P. 425 Andersen, J. 243 Anderson, B. 59 Anderson, V. 2, 174 APEC (Asia-Pacific Economic Cooperation) economies 76, 77, 132, 133 ‘A players’ 419, 420, 433 Appelbaum, E. 143 Ardichvili, A. 172, 181, 185, 201–2, 388

area of operation (organisational characteristic) 54 Argyris, C. 203 Arnold, J. 343 Arnold, M. 173 Artís, M. 158–9 ascription-oriented cultures 107, 115, 119, 122 Asrar, M. 282 assertiveness orientation 359 Assessment (leader development model) 361 Atkins, W. B. 327 Attewell, P. 134 attribution (culture assimilator) 326 autopoiesis 196 Avedon, M. J. 426 awareness-based training 56, 62 Aycan, Z. 114 Babar, S. 282 ‘backsourcing’ 215 Bacon, N. 87 Bader, B. 330 Baek, P. 186 Baluch, A. M. 53 Bank of Ireland 219–20 Barney, J. B. 153 Barré, B. 140 Bartlett, C. A. 37 Bartlett, K. 64, 86, 203–4, 286 Baruch, Y. 340, 348 Bashir, T. 282 basic competences 131 Baya, V. 280–81 BCNs (broadband communication networks) 278 Beatty, R. W. 245 Becker, B. E. 245 Becker, G. S. 149, 152 Beckhard, R. 385 behaviour modification 325 behavioural psychology 31, 32, 45

463

GARAVAN 9781781954171 PRINT.indd 463

22/09/2017 16:32

464  Handbook of international human resource development Bennett, E. E. 269, 271, 281, 282–3, 288 Bennett, M. J. 366 Benson, P. G. 38 Berg, N. 330 Berger, N. O. 268 Bertolotti, F. 306 Beruf 136, 138 ‘best practice’ 30, 33, 41, 61, 138, 140, 143, 184, 189, 289, 304, 368 Bhagat, R. 197–8, 204, 323 Bhasin, S. 240, 241 Bhawuk, D. 326 Bierema, L. L. 281, 404 Bird, A. 365, 369 Birdi, K. S. 62–3 Bishop, D. 86 Björkman, I. 13, 424 Black, J. S. 328 Blackburn, C. 239, 240 Blakeney, N. R. 330 Blakeney, R. 205–6 blended talent development 437 Boh, W. 198 Bohlinger, S. 138 Bolino, M. C. 329 Bonazzi, G. 241, 243 Botti, H. F. 241, 243 boundaryless careers 339–40, 341, 342, 343, 346, 349–50, 351 ‘boundary–spanning learning’ 185–6, 187 ‘bounded rationality’ 175, 176, 178 Boxall, P. 84 Boyd, B. K. 450–51 Boyer, R. 140 Boyle, T. A. 239, 242 Boyne, G. 65 Bozkurt, Ö. 302–3 ‘B players’ 420 Brandl, J. 61 Branine, M. 398–9 Brau, J. C. 241, 243–4 Brewster, C. 36, 100 Brexit 164 Brittain, S. 420 Brookes, M. 36 Brookfield Global Relocation Services 315, 316 Brooks, A. K. 109

GARAVAN 9781781954171 PRINT.indd 464

Browne, J. 367–8 Bryant, S. E. 83 Buckley, P. J. 60 Budhwar, P. 221 Burcher, P. 240, 241 bureaucratization (of training and development) 63–4 Burgess, N. 199 Burt, R. S. 296, 298, 299–300 business capabilities (lean management characteristic) 236 ‘cafeteria systems’ 8 calculated rationality 254 Caligiuri, P. 323, 329 Callahan, J. L. 58, 59 Campinos-Dubernet, M. 141 Cappellen, T. 348 captive offshoring 215–16 Carbery, R. 2, 110, 179, 186–7, 396, 447, 452 career competence transference 345 Carraher, S. M. 303 ‘carrot and stick’ training 82 Cascio, W. 450, 453 Casey, A. 429 Castany, L. 78 Castle, D. 185 Cerdin, J. L. 303 ‘ceremonial greening’ 178 Cervero, R. M. 409 Challenge (leader development model) 361 challenges (developmental pathways) 425 Chang, H. 322–3 Chang, W. -W. 58–9 Chi, N. -W. 79 Chiu, C. 201 Chlup, D. 399 Cho, E. 110 Choe, S. 207 Chu, C. 389 Chuai, X. 420 Chung, C. 274 Church, A. H. 424 CIPD (Chartered Institute of Personnel and Development) 150, 419, 420, 431 Civil Rights Act (1964) 396

22/09/2017 16:32

Index  ­465 Clarke, N. 371 Clarke, S. 186 clinical information systems 283–4 coaching/mentoring 68, 72, 204, 205–6, 279, 288, 302, 326–7, 331, 432 Coakes, E. 197, 198 Code of Hammurabi 130 Coetzer, A. 81, 82 ‘Co-existence’ orientation (Green IHRD) 173–4 Coget, J. 35, 111 cognitive competence 130 cognitive training and development 325 COH (country of host) 40–41 Cohen, L. 343 Colbert, B. A. 183 Coles, M. 138 collective vision 260–61 collectivist cultures 82, 105, 106, 111–12, 117, 122, 359, 362, 363–4, 384, 389–90 Collings, D. G. 34, 425 Collinson, S. 452 ‘common global practices’ 30 communication (lean management factor) 234–5, 242–3 communication challenges (global teams) 387–8 community (corporate social performance dimension) 410 competence/competencies 129–32, 143–4 developing a European framework 137–9 evolution within IHRD 132–4 and Green IHRD 187, 188 implications for IHRD research and practice 139–43 and leader development 365, 368–71, 372 offshoring and outsourcing 216, 220, 221, 227 regional/country conceptualisations of 135–7 and skill 131–2, 134, 135–6, 138–9, 141 social capital and networking 187, 303–4 and talent development 418, 420, 421–2, 424

GARAVAN 9781781954171 PRINT.indd 465

vocational education and training 129–30, 133–4, 135, 136, 139, 141–2 competency maps 424 competitive advantage 31–2, 33, 36, 45, 89, 153, 181, 194, 216, 219, 232, 250, 348, 378, 423 ‘Compliance’ orientation (Green IHRD) 173 conceptual equivalence 449–50 conceptualising IHRD 1–2 Considered Apparel Index 281 consultative mechanisms 238–9, 240 contemporary global careers 338–41 Content (knowledge transfer factor) 198 Context (knowledge transfer factor) 198 ‘context generalisability’ (of IHRD practices) 35 contextual drivers of IHRD 6–9 contingency (fit) theory 101, 103–5, 121, 122, 123 convenience sampling 452 convergence–divergence debate 33–6, 43–4, 46, 104, 217–18, 226–7 COO (country of origin) 40–41, 46 Cooke, F. L. 432 ‘Cooperation’ orientation (Green IHRD) 173 coping competence transference 345 CoPs (communities of practice) 196, 200–202, 207, 208, 209 core competences 131 Cornforth, C. 61 corporate social performance 410–11 Cortina, J. M. 448 country level analysis (IHRD research framework) 9–11, 20–21 Cox, J. W. 132 Cox, T. 398, 404–5, 412 Cranet survey 36, 453, 456, 459 Crocitto, M. M. 303 cross-cultural congruence theory 358 cross-cultural perspectives 4–5, 40, 110–11, 337, 387, 388 contingency (fit) theory 101, 103–5, 121, 122, 123 defining national culture 100–101

22/09/2017 16:32

466  Handbook of international human resource development and diversity 100, 101, 102, 103–4, 105, 108, 110, 111, 116 and globalisation 100, 102, 104, 108, 110, 123 implications for IHRD research and practice 116, 121–2 and knowledge management 194, 195, 197, 200, 201–2 and leader development 358, 365, 370–72 national and cross‑cultural influences on IHRD 109–16 offshoring and outsourcing 222, 227 relevance for IHRD theory and practice 102–5 researching IHRD 447, 451, 456, 459 training and development 101, 102–3, 104, 109, 111, 112–16, 120 typologies of national culture 105–9, 111–16, 123 and virtual HRD 272, 276, 277, 279, 287, 288–90 Cross, R. 299, 305 ‘crossvergence’ 218, 224 Crowne, K. A. 206 CRT (critical race theory) 401–2 Cseh, M. 4 CSR (corporate social responsibility) 7, 172, 175, 176, 182, 405 cultural congruence theory 358, 359 cultural intelligence (CQ) 108, 323–4, 367–8 cultural novelty theory 320, 321 cultural self-awareness 326 cultural training 38, 45, 59, 71, 111, 205, 321, 325–6, 347, 387 ‘culturalists’ 102 culture-bounded perspective 101, 103, 122 culture shock 327, 328 Culver, K. 185 Cummings, J. N. 305 Cummings, L. 104 Cunningham, I. 62 Currie, G. 199 Dany, O. 102–3 Darby, R. 38 Davenport, T. 195

GARAVAN 9781781954171 PRINT.indd 466

Davey, K. M. 340 Davis, E. B. 4 Day, D. V. 427–8 Dayton, P. W. 296 decision-making (strategic learning capability) 251, 252, 253–4, 260, 261, 262, 264 deficiency model 77–8, 84, 91 defining IHRD territory 2–6 Deflorin, P. 239, 242 de Leeux, E. D. 448–9 Delello, J. A. 280 De Long, D. 194, 195 Dennis, B. 410 DeSeCo (Definition and Selection of Competencies) project 132 Dessler, G. 114 developing countries 3, 87, 144, 197, 396, 453 and human capital investment 154, 155, 160, 162, 163 INGOs, nonprofit and public sector organisations 59–60, 65, 67–8 and virtual HRD 275, 278, 280, 286–7, 290 Development Dimensions International 102 developmental job challenge 361, 362–3 developmental relationships 428–9 de Wit, B. 304 dialogue/strategic conversation 256, 258, 260, 264 Dickmann, M. 348 didactic training 387 Dierendonck, D. 404 digital divides 278–9, 287 Dillman, D. A. 448–9 DiMarcello, N. 280 discrimination and fairness perspective 400 distal outcomes (IHRD research framework) 9, 10, 11, 12, 13, 14, 21 diversity 396–7, 414 challenges for IHRD 405–9 conceptualizing 398–405 and convergence–divergence debate 34, 43–4 corporate social performance 410–11

22/09/2017 16:32

Index  ­467 diversity training 66–7, 347, 397, 400, 402–4, 411–12, 413 as driver of IHRD 8 and globalisation 396, 397, 399 and global teams 390 IHRD and effective diversity management 402–5 implications for IHRD research and practice 411–14 INGOs, nonprofit and public sector organisations 66–7, 68 international diversity management 400 minority groups 401–2, 407–8 and moral conventions 407–8 national cultural/cross‑cultural perspectives 100, 101, 102, 103–4, 105, 108, 110, 111, 116 power relations and structures 408–9 proactive engagement of IHRD 409 psychology of 406–7 and ‘tolerance’ 407–8 Dobrow, S. R. 428–9 Doogan, K. 340 Dooley, L. M. 288 Dorfman, P. W. 359 double-loop learning 175, 181, 203 Dowling, P. 31, 317 Downes, M. 322 Dreyfus, H. L. 136, 140 Dreyfus, S. E. 136, 140 Dries, N. 419–20 Drost, E. A. 41–2 Drucker, P. F. 253 Duan, Y. 197, 198 Dudkowski, R. 204 Dugan, B. 434 duration (organisational characteristic) 55 dynamic capabilities perspective 89–90, 423 Earley, P. C. 39, 112 Easterby-Smith, M. 196 eBay.com 281 EBSCO Host 397 EC (European Commission) 77 economic instability 68–9 Economic theory 103

GARAVAN 9781781954171 PRINT.indd 467

ecosystems 287, 289 ECTS (European Credit Transfer System) 133 ECVET (European Credit Transfer System for Vocational Education and Training) 130, 133, 137, 138, 139, 140 Edelman, L. F. 81 Education Pillar (WEF) 157, 162 educational levels factor 41–2 Edwards, J. R. 457 Ehrnrooth, M. 424 EHRs (electronic health records) 284 e-learning 7, 78, 114, 220, 273–4 ELF (ethnolinguistic fractionalisation) 108 Ely, R. 400, 411, 412 employability security 338–9 employee diversity (corporate social performance dimension) 410 employee relations (corporate social performance dimension) 410–11 empowerment 260–61 Enabling Environment Pillar (WEF) 163 Engel, D. W. 104 Englar-Carlson, M. 345 Engle, A. D. 317 Ensel, W. M. 296, 300 enterprise systems 287 environment (corporate social performance dimension) 410 EQF (European Qualifications Framework) 133, 137–8, 139, 140 equivalence of measures 448–51, 454, 455, 457, 458–9 Erosa, A. 154 ESCO (European Skills, Competences and Occupations) 138–9 Esping-Anderson, G. 140 ETED (Emploi Type Etudié dans sa Dynamique) 136 ethnocentric paradox 368–9 ethnocentric/global approach 37, 41, 43, 45 EU (European Union) 132, 133, 137–9, 140, 141–2, 144, 150, 164 exclusive approach (talent development) 420 expatriates/inpatriates 5–6, 315–18, 331

22/09/2017 16:32

468  Handbook of international human resource development benefits and challenges of assignments 318–21 critical success factors 321–4 and cultural training 45, 59, 177, 325–6, 329 family level benefits/challenges 319, 320 and global careers 337, 346, 347, 349 IHRD support 327–8 implications for IHRD research and practice 330–31 individual level benefits/challenges 318, 319, 320 and knowledge management 194, 198, 199, 203, 205–6, 207, 208, 209 and MNCs 37–9, 40, 43–5, 315–16, 329–31 organizational level benefits/ challenges 318, 319, 320 post-repatriation 329–30 pre-departure preparation 316, 324–6, 329 pre-repatriation 328–9 social capital and networking 303–4, 305 spouse/partner management 315–16 training and development 316, 325–6 experiences (developmental pathways) 424–5 experiential training 325, 387 explicit knowledge 45, 81, 195–6, 204, 271, 272, 430 exposures (developmental pathways) 425 ‘external events’ 456 facial image technology 285 Fafaliou, I. 79 Fahey, L. 194, 195 fair trade 280 family (in group) collectivism 359 family system theory 320 fatalism 107, 114, 118, 122 Fawcett, S. 241, 243–4 Fazarro, D. 280 FDI (foreign direct investment) 29, 76, 79, 155, 158

GARAVAN 9781781954171 PRINT.indd 468

Felstead, A. 42 feminine/masculine cultural dimension 106, 115–16, 120, 122 Fenwick, T. 183, 186 Ferner, A. 34 Festing, M. 317 financial capabilities 235–6 Fischer, K. W. 137 Fischer, R. 104 Fisher, D. 259 five-dimensional framework of national culture 101, 102, 105, 108, 123 five-stage developmental model 383–4 Fletcher, D. 79 focused factory 236 Forbes, L. C. 178, 184 foreign ownership factor 42 formal mentoring 431–2 forming (five-stage developmental model) 383–4 foundation conceptions (Green IHRD) 174 Frambach, J. M. 364 framework for IHRD research 9–14, 20–21 framing (action inquiry) 259 Fuller, A. 142 functional competence 130 functional/cross-functional global teams 378, 379–80, 381 funded (organisational characteristic) 55 Furth, D. 141 future orientation 106, 114, 118, 359, 389 ‘fuzzy concepts’ 130 Gabbay, S. M. 296 Gabler, S. 452 Gallardo-Gallardo, E. 419–20 Gandz, J. 422 Garavan, T. N. 2, 68, 70, 110, 151, 172, 174, 179, 180, 186–7, 188, 304, 396, 447, 452 Gedro, J. A. 409 gender egalitarianism 107, 116, 120, 122, 359, 389 generational learning styles 67–8 generic competencies 418, 421–2, 428

22/09/2017 16:32

Index  ­469 geocentric/transnational approach 37–8, 40, 45 Geppert, M. 89 Gersick, C. J. 384 GFC (global financial crisis) 456 Ghoshal, S. 37, 300–301 Giacobbe-Miller, J. 35 Gibson, S. 405 Gilson, L. L. 378 Gladwin, T. N. 183 global careers 336–8, 351–2 boundaryless careers 339–40, 341, 342, 343, 346, 349–50, 351 career transitions 345–6 challenges and opportunities for IHRD 348–51 employee profiles 337 expatriates and repatriates 337, 346, 347, 349 free choice/ personal agency 343–4 IHRD interventions 346–8 implications for IHRD research and practice 351 objective and subjective career success 341–4 protean careers 339, 342, 343, 349–50 talent management 347–8 traditional and contemporary careers 338–41 global HRD perspective 2–3, 30, 32, 44, 77, 104, 110, 222, 224, 229, 276, 304 Global Innovation Index 157 global mindset 187, 303, 337, 344, 346, 347 global teams 377–8, 392 criteria for successful teams 380, 382–3 developmental challenges 387–9 functional/cross-functional teams 378, 379–80, 381 implications for IHRD research and practice 389–92 stages of team development 383–5 team building 385 training content 386–7 types of 378–80, 381–2 vertical/horizontal teams 378, 380, 382

GARAVAN 9781781954171 PRINT.indd 469

virtual/on-site teams 378, 379, 381, 385–6, 388 globalisation and diversity 396, 397, 399 as driver of IHRD 6–7 global careers see global careers global teams see global teams INGOs, nonprofit and public sector organisations 58, 65, 66, 70, 72 and knowledge economy 8 and MNCs 7, 30, 33, 43 national cultural/cross‑cultural perspectives 100, 102, 104, 108, 110, 123 offshoring and outsourcing 213, 216, 217, 218, 228 and SMEs 76, 79 and virtual HRD 268, 270, 271, 277, 279–80, 286 GLOBE project 105, 116, 121, 198, 359–60, 389 ‘glocals’ 223 Gloet, M. 185–6 Goergen, M. 90 Goh, J. W. -P. 364 Goh, S. C. 260, 261 Gold, J. 79 González-Cruz, T. F. 419–20 Gourley, S. 196, 197 GPEC (Gestion Prévisionnelle des Emplois et des Compétences) 136 Grando, J. -M. 141 Granovetter, M. S. 298, 299, 305 Gratton, L. 281 Gray, C. 79 Green IHRD 171–3, 190–91 components of 173–4 conceptual framework 173–5, 190 corporate social responsibility 172, 175, 176, 182 IHRD focus 174, 175, 176–7, 179, 184 IHRD practice 174, 175, 177, 180, 184–5 implications for IHRD research and practice 187–90 increased focus on sustainability 171–3 knowledge constitutive interest 174, 175–6, 178, 182–3

22/09/2017 16:32

470  Handbook of international human resource development learning and development 171, 172, 179, 187, 189 learning focus 174, 175, 177, 180–81, 185–6 stakeholder focus 174, 175, 176, 179, 183 Strategic Green IHRD 174, 175, 178–82 sustainability conceptualization 174, 175, 176, 178–9, 183 Tactical Green IHRD 174, 175–8 Transformational Green IHRD 174, 175, 182–7 ‘triple bottom line’ focus 171, 173, 175, 176, 186 and virtual HRD 280–81, 286–7 ‘green washing’ 178 Green, F. 42 Green, T. K. 404 Greenidge, D. 78 Greenwald, P. 296 Gregersen, H. B. 328 Gruman, G. 280–81 Grundy, T. 251 GSS (group support system) 385 guanxi relationships 112 Gubbins, C. 187, 304 Guenole, N. 81 Guest, D. 340 Gunnigle, P. 41 Haddock, J. 173, 188 Hader, S. 452 Haggerty, J. J. 244 Hall, D. T. 339, 340, 342, 348 Hall, P. A. 140 Hampden-Turner, C. 105 Hansen, K. D. 109 Hansen, M. T. 305 Harrison, D. A. 322 Harryson, S. J. 204 Harvey, M. 323 Harzing, A. -W. 199, 454, 455 Hassid, J. 79 Hatcher, T. 179, 184 Haynie, J. M. 351 Hayton, J. 199 HCNs (host country nationals) 18, 37, 40, 45, 317, 327

GARAVAN 9781781954171 PRINT.indd 470

HDI (Human Development Index) 155, 156, 161 HE (Higher Education) 129, 133–4, 139 Health and Wellness Pillar (WEF) 162 Hedberg, B. 255 Heenan, D. 317 Helper, S. 240 Hemmasi, M. 322 Heraty, N. 35, 36, 41 Heslin, P. A. 342 heterogeneity 4, 29, 31, 33, 43, 44, 89, 100, 153, 161, 397–8, 403, 409 Higgins, M. 428–9 ‘high performers’ 350–51, 420 high/low context culture 107, 115, 119 Hillion, B. 109 Hindustan Service Centre 216 Hite, L. M. 400 Hofstede, G. 5, 35, 100, 101, 102, 105, 108, 112, 121, 123, 273, 359, 363, 380, 389 Hofstede, G. J. 380 Holden, R. 200 Holladay, C. 404 home country acceptance (expatriates) 329 home office connection (expatriates) 328 homogeneity 4, 8, 19, 30–31, 33, 36, 44, 184, 341, 405 Hooker, N. H. 280 Hoque, K. 87 Hornsby, J. 80 host country unit/operation (IHRD research framework) 9, 10, 12–13 House, R. J. 380, 450 Hox, J. J. 448–9 Hsu, M. 201 Huang, W. W. 385 Hukai, D. 408 Hult, G. 455 ‘human capital emigration’ 158 human capital investment 149–51, 163–4 and developing countries 154, 155, 160, 162, 163 and Human Development Index 155, 156, 161

22/09/2017 16:32

Index  ­471 implications for IHRD research and practice 161–3 international comparisons 159–61 macro-level perspectives 153–5, 159, 160–62, 163 micro-level perspectives 152–3, 160–62, 163 in MNCs 31, 32, 40, 42, 45 national comparisons 155–9 resource-based view 152–3, 161 training and development 149, 150–51, 152, 154, 155, 159–62, 163 human capital theory 12, 14, 64, 68, 152, 222 Human Resource Development International 109 humane orientation 107, 116, 120, 122, 359, 389 Huselid, M. A. 245 Hutchings, K. 337 Hyland, P. 34, 42 IBM 214–15 identity/identification 305–6, 328, 338, 341, 345, 400, 402, 403, 406 IFIs (International Financial Institutions) 69 IHRD focus (Green IHRD) 174, 175, 176–7, 179, 184 IHRD practice (Green IHRD) 174, 175, 177, 180, 184–5 IiP (Investors in People) 87, 135 IKEA 425 Ikuomola, O. 421 Iles, P. 420 illustrating (action inquiry) 259 ILO (International Labour Organization) 132, 138 IMF (International Monetary Fund) 58 impact on individuals 238 impact on organizations 239 impact on teams 238–9 implicit development 429–30 implicit leadership theory 359, 365, 389 incidental development 429, 430 inclusion 396–7, 414 challenges for IHRD 405–9 conceptualizing 398–405

GARAVAN 9781781954171 PRINT.indd 471

corporate social performance 410–11 diversity training 397, 400, 402–4, 411–12, 413 IHRD and effective diversity management 402–5 implications for IHRD research and practice 411–14 international diversity management 400 minority groups 401–2, 407–8 and moral conventions 407–8 power relations and structures 408–9 proactive engagement of IHRD 409 psychology of diversity 406–7 and ‘tolerance’ 407–8 inclusive approach (talent development) 420 individual level of analysis (IHRD research framework) 9, 10, 13–14, 21 individualist cultures 82, 105, 111–12, 117, 122, 197, 359, 363, 364, 384, 390, 450 industry factor 42–3 influencing factors (IHRD research framework) 9, 10, 11–13, 14, 20–21 informal learning 429–30 information technology (as driver of IHRD) 7 INGOs (international nongovernmental organisations) 52–3, 73 and cultural training 59 current IHRD literature 58–60 and developing countries 59–60 and globalisation 58 growing importance of 53, 58 HRD context 55–6 IHRD challenges and opportunities 66–71 IHRD evaluations 57 implications for IHRD research and practice 71–3 key characteristics and IHRD considerations 54–7 type of HRD 56 Inkpen, A. C. 306 Inkson, K. 337 inpatriates see expatriates/inpatriates

22/09/2017 16:32

472  Handbook of international human resource development input competences 130, 131 inquiring (action inquiry) 259 ‘insider stories’ 88–9 Institute for Corporate Productivity 377, 391 institutional collectivism 359 institutional theory 12, 25, 40, 43, 222 integrated training and development 326 integration conceptions (Green IHRD) 174 interaction 326 interaction training 387 intercultural sensitivity model 366 internationalising organisations 5–6, 9, 10, 11–14, 21, 222, 372 SMEs see under SMEs Internet 269–70, 278–9, 284–5 intranets 269, 270, 274 INTREPID project 453, 459 intuition 254–5, 263, 264 involvement (organisational characteristic) 54 IoT (Internet of Things) 284–5 ISCO (International Standard Classification of Occupations) 138 Jackson-van Veen, M. 33 Jankauskienė, V. 399 Jansen, J. 198 Janssens, M. 348 Javidan, M. 198, 204–5 JD-R (job demands-resources) model 320, 321 Jeanquart, S. 113 Jenkins, G. 65 Jermier, J. M. 178, 184 JIT (just-in-time) management 233, 239, 240, 437 job crafting 350–51 job stability (organisational characteristic) 55 Johnson-Bailey, J. 409 Johnson, E. C. 327 Johns, T. 281 Jones, D. T. 232, 244 Jordan, M. H. 71 Journal of International Business Studies 108

GARAVAN 9781781954171 PRINT.indd 472

Jovanovic, B. 161 JP Morgan 214–15 Kalev, A. 404 Kanungo, R. N. 327 Kaye, B. 426 Kayes, A. B. 367 Kayes, D. C. 367 Kennelly, J. J. 183 Khan, M. A. 60, 69 Khandelwal, A. K. 64, 65, 68 Khilji, S. E. 4 Kidger, P. 33 Kiehl, J. 240 Kiessling, T. 323 Kilian, C. 408 Kilpatrick, S. 61 Kim, N. 186 Kirkman, B. L. 108 Kitching, J. 82 Klaas, B. S. 86 Kluckhohn, C. K. 100 Knippenberg, D. 404 knowledge brokering 199, 206, 208 knowledge constitutive interest (Green IHRD) 174, 175–6, 178, 182–3 knowledge creation/co-creation 194, 199–203, 205–7, 208, 209 knowledge economy/knowledge-based economy 6, 7–8, 12, 66, 150, 152, 194, 195, 222, 224, 433 knowledge influence model 272 knowledge management 194–5, 208–9 communities of practice 196, 200–202, 207, 208, 209 expatriates and repatriates 194, 198, 199, 203, 205–6, 207, 208, 209 implications for IHRD research and practice 207–8 international and cross border knowledge transfer 197–9 knowledge brokering 199, 206, 208 knowledge creation/co-creation 194, 199–203, 205–7, 208, 209 knowledge sharing 194, 195–7, 199–202, 204, 205–7, 208, 209, 304–6 knowledge transfer 194, 195–9, 202–7, 208–9, 262 in MNCs 197, 199, 203–4, 207

22/09/2017 16:32

Index  ­473 offshoring and outsourcing 225 role of IHRD 202–7 training and development 202–3, 204, 208, 209 knowledge sharing 194, 195–7, 199–202, 204, 205–7, 208, 209, 304–6 knowledge transfer 12, 68, 102, 194, 195–7, 202–7, 208–9, 262, 306, 329, 349, 371, 390 international and cross border 197–9 offshoring and outsourcing 213, 220, 224, 225, 227, 229 Kong, E. 60, 70 Kopnina, H. 183 Koreshkova, T. 154 Korpi, W. 140 Kostova, T. 29 Kotey, B. 80 Kraimer, M. L. 329 Kram, K. E. 428 Krause, T. S. 183 KSA (knowledge, skills and attitudes) model 130–31 Kuchinke, K. P. 103, 185, 388 Kuhn, J. S. 258 Kulik, C. T. 457, 458 Kuo, C. 238–9, 241 Kuratko, D. F. 80 Kurucz, E. C. 183 Kvedaraitė, N. 399 Kwon, S. W. 297 Lambell, R. 58 Lane, C. 141 Lange, T. 82 language training 38, 45, 387 Lap, Erin 425 Lave, J. 200 Lazarova, M. B. 303, 316, 329, 337 leader development 357–8, 372 360 degree feedback 361, 362, 370 and complexity 367, 369–70, 371, 372 contrast with leadership development 357–8 cross-cultural differences in leadership 359–60 cultural considerations 360–64

GARAVAN 9781781954171 PRINT.indd 473

developmental job challenge 361, 362–3 ethnocentric paradox 368–9 evidence and practice gap 366–7 global leader competences 365, 368–71, 372 global leader development 365–70 implications for IHRD research and practice 370–71 individualist and collectivist cultures 359, 362, 363–4 research to advance theory 367–8 self-directed learning 361, 363–4, 370 leadership (lean management characteristic) 236 leadership challenges (global teams) 388–9 lean management 232–4, 246 communication 234–5, 242–3 factors facilitating lean implementation 234–5 implications for IHRD research and practice 244–6 long-term focus 234–5, 240 mechanisms 234–5, 238–9 necessary conditions 234–8 partnerships 234–5, 243–4 tools and practices 234–5, 241 training 234–5, 241–2 learning action networks 186 learning agility 288 learning and development see training/ learning and development learning and effectiveness perspective 400, 411 learning focus (Green IHRD) 174, 175, 177, 180–81, 185–6 Learning theory 103 Leenders, A. J. 296 legislative requirements factor 42 Leonardo da Vinci Programme 138 Leung, K. 108 Levin, D. Z. 299 LGBT minority group 406–7, 408, 412 Lin, C. Y. -Y. 79 Lin, N. 296, 300 Lirio, P. 337 Littrell, L. N. 39 Liu, Y. 345

22/09/2017 16:32

474  Handbook of international human resource development LMS (Learning Management System) 220, 270 local adaptation approach 30–31, 34, 36, 43 local knowledge 207, 271, 304, 316 Lombardozzi, C. 429 long-term focus (lean management factor) 234–5, 240 Loumi-Messerer, K. 140 Løvås, B. 305 Love, J. H. 80 Lucas, R. E. 153, 161 Lui, Y. 203–4 Luiz, J. M. 108 Lundvall, B. -Å. 141 Lyles, M. 196, 198 Mabey, C. 79 MacKenzie, C. A. 179, 186–7 Macrì, D. M. 306 Mäkelä, K. 424 management commitment (lean management characteristic) 236, 237 management structure (organisational characteristic) 55 managerialism 65 Manolova, T. S. 80, 81 Manpower Services Commission 135 Mansfield, B. 135 Marchant, T. 77 Marconi, N. 280 Marcus, J. 183 Markowitsch, J. 140 Marlow, S. 85, 86 Marquardt, M. J. 104, 268 Marsella, A. 406, 407 Marsick, V. J. 260, 273 Martins, L. L. 378 Mathew, A. 432 Matlay, H. 79 Matten, D. 89 Maycock, E. 421 Maynard, M. T. 378 McCarty, C. 408 McCauley, C. D. 357, 358, 360–61 McClelland, David 130, 131, 135, 143 McDermott, R. 201 McDonald, K. S. 400

GARAVAN 9781781954171 PRINT.indd 474

McDonnell, A. 366–7, 368, 369, 424, 425 McEvoy, G. M. 323 McGraw, P. 41 McGuire, D. 151, 172, 174, 188 McKenna, S. 121 McKinsey Consulting Group 420 McLean, G. N. 2, 5, 109, 110, 158, 205, 275, 276, 277, 323, 327, 328 McLean, L. 109 McMahan, G. C. 32 McWhorter, R. R. 269, 280, 288 McWilliams, A. 32 meaning (organisational characteristic) 54 mechanisms (lean management factor) 234–5, 238–9 MEDEF (Mouvement des Entreprises de France) 136 Mendenhall, M. 323, 365, 369 mentoring/coaching 68, 72, 204, 205–6, 279, 288, 302, 326–7, 331, 432 Meredith, R. 114 Merkin, R. S. 275 meta-competences 131 Metcalfe, B. D. 3, 110, 276, 337 Meyer, R. 304 Miao, Y. 207 Midgley, D. 108 migrant crisis 279–80 Mikkelsen, H. 243 Miller, P. 77 Minbaeva, D. 329–30 mindsets (lean management characteristic) 236, 237 ‘mini-career cycles’ 345–6 Minichiello, V. 345 Minkov, M. 380 Minton-Eversole, T. 377 Mintzberg, Henry 251, 257 mission-based training 62 Mitchell, L. 135 MNCs (multinational corporations) 29–31 and competitive advantage 31–2, 33, 36, 45 convergence–divergence debate 33–6, 43–4, 46 diversity and inclusion 396, 405

22/09/2017 16:32

Index  ­475 ethnocentric/global approach 37, 41, 43, 45 expatriates and inpatriates 37–9, 40, 43–5, 315–16, 329–31 framework for IHRD research 9, 11 future research areas 44–5 geocentric/transnational approach 37–8, 40, 45 and globalisation 7, 30, 33, 43 homogeneity and heterogeneity of IHRD strategy 29, 30–31, 33, 36, 43, 44 human capital investment 31, 32, 40, 42, 45 IHRD practices and implementation 38–43 IHRD strategy and roles 37–8 implications for IHRD research and practice 43–5 and internationalising organisations 5–6 and knowledge management 197, 199, 203–4, 207 and leader development 366–7, 368 local adaptation approach 30–31, 34, 36, 43 national cultural/cross‑cultural perspectives 100, 102, 104, 109, 122–3 offshoring and outsourcing 213 polycentric/multi-domestic approach 37, 40, 41, 43, 45 post-arrival training 39–40, 45 pre-departure training 38–9, 43, 45 role and importance of IHRD 31–3 social capital and networking 303–5, 306, 307 and talent development 417–18, 422–3, 424, 426, 431, 437 training and development function 30, 31–3, 37–8, 40–44, 45 MNEs (multinational enterprises) see MNCs Moeller, M. 323 Mohr, A. T. 302–3 Moody, J. 299 Moon, H. 250 moral conventions 407–8

GARAVAN 9781781954171 PRINT.indd 475

Morgan, L. 241, 243–4 Morley, M. 34, 35, 36, 41 Morris, M. W. 108 Mors, M. L. 305 motivation challenges (global teams) 388 Motwani, J. 241, 242, 244 MOW (meaning of work) study 388 Moxley, R. S. 358 Mulder, M. 130 Mylonopoulos, N. 200 Nadiri, H. 113 Nahapiet, J. 300–301 national culture 100–101 contingency (fit) theory 101, 103–5, 121, 122, 123 and diversity 100, 101, 102, 103–4, 105, 108, 110, 111, 116 and globalisation 100, 102, 104, 108, 110, 123 implications for IHRD research and practice 116, 121–2 influences on IHRD 109–16 relevance for IHRD theory and practice 102–5 training and development 101, 102–3, 104, 109, 111, 112–16, 120 typologies of 105–9, 111–16, 123 ‘national systems of innovation’ 141 Ndoye, A. 115 Neale, A. 180 necessary conditions (lean management factor) 234–8 Nelson, R. 153 neo-liberalism 66 Nery-Kjerfve, T. 205 networks, expatriate 327–8 Nguyen, T. 83, 198 NHRD (national HRD) perspective 3–4, 9–11, 20–21, 110, 152, 222, 223, 225, 229, 275 NHS (National Health Service) 431 Nie, W. 197, 198 Nightingale, D. 239, 240 Noble, C. 36, 37 Nohria, N. 4, 32–3, 102 Nonaka, I. 270–71 nonnormative events 345

22/09/2017 16:32

476  Handbook of international human resource development nonprofit organisations 52–3, 73 critical function of HRD 62 defining 60–61, 63 and for-profit strategies 60 HRD context 55–6 IHRD challenges and opportunities 66–71 IHRD evaluations 57 implications for IHRD research and practice 71–3 intervention strategies 61–2 key characteristics and IHRD considerations 54–7 relationship with government 61 training design 62–3 type of HRD 56 normative role transitions 345 norming (five-stage developmental model) 383–4 Novicevic, M. M. 323 NPM (New Public Management) 64, 65 NQFs (National Qualifications Frameworks) 138 Nutt, P. C. 253 NVET (national vocational education and training) 225 NVQs (National Vocational Qualifications) 135 O’Donnell, D. 151 O’Shea, P. 434 O’Sullivan, S. L. 53, 58, 59 Oates, T. 138 object approach (talent development) 420 objective career success 341–4 objective(s) (organisational characteristic) 54 Oddou, G. 205–6, 323, 330 OECD (Organisation for Economic Co-operation and Development) 68, 85, 90, 132, 150, 155–7, 277–8 offshoring 7–8, 213–14, 215–16, 228–9 convergence–divergence debate 217–18, 226–7 debates surrounding 216–18 forms of 218–22 and globalisation 213, 216, 217, 218, 228

GARAVAN 9781781954171 PRINT.indd 476

IHRD challenges 222–4 implications for IHRD research and practice 225–8 knowledge transfer 213, 220, 224, 225, 227, 229 ‘people consequences’ of 217 resource-based view 219, 220, 221, 222, 224 resource dependency theory 220, 221 strategic offshore outsourcing 219–20, 221, 223, 224, 225, 227, 228–9 tactical offshore outsourcing 219, 221, 224, 228, 229 transactional cost economics theory 219, 220, 221 transformational offshore outsourcing 220–22, 224, 225, 227–9 Ohemeng, F. 65 Ojha, D. 238–9, 241 Onkelinx, J. 81 organisational structure (organisational characteristic) 54 organizational learning 172–3, 177, 180–81, 184–5, 188, 196, 205, 209, 251, 256, 260, 272–3, 329, 390 orientation training 38, 59 Orpin, P. 61 Osland, J. S. 205–6, 330 other-referent subjective success 342 Ottens, M. 82 output competences 130, 131 outsourcing 7–8, 213–24, 228–9 convergence–divergence debate 217–18, 226–7 debates surrounding 216–18 forms of 218–22 and globalisation 213, 216, 217, 218, 228 IHRD challenges 222–4 implications for IHRD research and practice 225–8 knowledge transfer 213, 220, 224, 225, 227, 229 ‘people consequences’ of 217 resource-based view 219, 220, 221, 222, 224 resource dependency theory 220, 221

22/09/2017 16:32

Index  ­477 strategic offshore outsourcing 219–20, 221, 223, 224, 225, 227, 228–9 tactical offshore outsourcing 219, 221, 224, 228, 229 transactional cost economics theory 219, 220, 221 transformational offshore outsourcing 220–22, 224, 225, 227–9 owner-managers (SMEs) 80–81, 82, 86 Pajo, K. 81 Panagiotakopoulos, A. 85–6 participative leadership 360, 389 participative mechanisms 238–9, 240 particularist cultures 106, 115, 119 partnerships (lean management factor) 234–5, 243–4 paternalism 107, 113–14, 117, 122, 339, 359, 432 patterns of power (organisational characteristic) 55 Patterson, M. G. 62–3 Paxton, P. 299 Pearson, J. 344 Pedersen & Partners Executive Search 318, 322 Pereira, V. 221 Peretz, H. 101, 113 performance orientation 106, 114, 116, 118, 122, 186, 359, 389 Performance theory 103 performing (five-stage developmental model) 383–4 Perlmutter, H. V. 37, 317 persistent occupational problems 345 personal competence 136 Pfeffer, J. 450 Phelps, E. 153 Phillips, M. E. 88 physical mobility 339 Piening, E. P. 53 Pieterse, A. 404 Pietersen, W. 251, 257 pipeline architecture (talent development) 422–3, 426 PISA (Programme for International Student Assessment) 132, 155–7, 158, 162

GARAVAN 9781781954171 PRINT.indd 477

polycentric/multi-domestic approach 37, 40, 41, 43, 45 Poole, M. 65 post-arrival training 39–40, 45 power distance 82–3, 202, 204, 273, 432 and global teams 380, 382, 389 and leader development 359–60, 362, 363 national cultural/cross‑cultural perspectives 101, 105, 106, 112–13, 117, 122 pre-departure training 38–9, 43, 45, 59, 316, 324–6, 329 Preece, D. 420 pre-HRD 276 Prien, K. O. 323 problematization approach 186, 190 processes, policies and practices (IHRD research framework) 9, 10, 11, 12, 13, 14, 21 Procter & Gamble 435 ProQuest 397 protean careers 339, 342, 343, 349–50 proximal outcomes (IHRD research framework) 9, 10, 11, 12, 13, 14, 21 Pruetipibultham, O. 328 Prusak, L. 195 psychological mobility 339 Psychological theory 103 Public Personal Management 420 public sector organisations 52–3, 73 and developing countries 65 HRD context 55–6 IHRD challenges and opportunities 66–71 IHRD evaluations 57 implications for IHRD research and practice 71–3 influence of HRD 63 internationalisation of management practices 64–5 key characteristics and IHRD considerations 54–7 and New Public Management 64, 65 training and development in 63–4 type of HRD 56 Pucel, D. 203–4 Pudelko, M. 199, 454, 455

22/09/2017 16:32

478  Handbook of international human resource development punctuated-equilibrium model 384–5 Purcell, J. 84 Putnam, R. D. 296–7 Pynes, J. E. 60, 64 Quinones, M. 404 Quintanilla, J. 34 Rainbird, H. 141 Ram, M. 84 Ramos, R. 158–9 Rao, P. 114 RBV (resource-based view) 31–2, 45, 89, 152–3, 161, 199, 219, 220, 221, 222, 224 RDT (resource dependency theory) 220, 221 Redfern, D. 33 Redmond, J. 81 Rees, C. J. 3, 110, 276 Reiche, B. S. 199, 323, 454, 455 ‘relational approach’ 433 repatriates 205–9, 209, 302, 303, 315, 328–9, 346, 347 Repečkienė, A. 399 researching IHRD 447–8, 458–9 administering the survey 454–7 challenges and opportunities for IHRD 457 developing a common research design 448–51 developing population and sampling strategy 451–4 equivalence of measures 448–51, 454, 455, 457, 458–9 implications for IHRD research and practice 458 quantitative and qualitative approaches 447–8, 452, 458 Restuccia, D. 154 reverse culture shock 328 Ridder, H. -G. 53 Rigg, C. 81 Riis, J. 243 Riordan, C. M. 449, 450, 454, 456 Rob, R. 161 Roberson, Q. 397 Rodrigues, R. A. 340 Rodwell, J. J. 69 Roloff, K. S. 428–9

GARAVAN 9781781954171 PRINT.indd 478

Romer, P. 153 Rooke, D. 259 Roome, N. 186 Roper, S. 80 Rosenblatt, Z. 101, 113 Rosenzweig, P. M. 4, 32–3, 102 Rowney, J. 108 Ruddy, T. 425 Ruderman, M. N. 358, 360–61 Rugman, A. 452 Ruisala, K. 198 Ruona, W. 250, 405 Rutherford, M. W. 80 Sackmann, S. A. 88 Sadler-Smith, E. 183, 263 Saini, D. S. 432 Salas, E. 39 sampling equivalence 454 Sandberg, J. 137 ‘satisficing’ 176, 178 SBA (Small Business Administration) 77 scaling equivalence 450 scenarios/scenario building 259–60, 263, 264 Schaffer, B. S. 449, 450, 454, 456 Scherrer-Rathje, M. 239, 242 Schlossberg, N. K. 345 Scholes, G. 426 ‘schooling model’ 141 Schraeder, M. 71 Schugurensky, D. 273 Schwabenland, C. 67 Scottish Vocational Qualifications 135 Scully-Russ, E. 172 self-directed learning 361, 363–4, 370 self-managed development 436 self-referent subjective success 342 sense-making 251, 252, 253, 254, 258, 268 sensitivity training 38 service-based organisations 58 ‘service centres’ 215, 216 Shaffer, M. A. 322, 329 Sharafizad, J. 81 sharing learning experiences (expatriates) 329–30 Sheehan, M. 90 Shen, J. 38

22/09/2017 16:32

Index  ­479 Shepherd, D. 351 Sheridan, A. 80 Short, D. C. 58, 59 Shortland, S. 328 Shrivastava, P. 182–3 SHRM (Society for Human Resource Management) 377, 398, 401, 403, 411, 412 Siebenhuner, B. 173 Silzer, R. F. 424 Simon, H. A. 176 simulations 258, 259, 264, 325, 326 skill (competency) 131–2, 134, 135–6, 138–9, 141 Skills Foresight 134 Skoldberg, K. 189 Sloan, J. 257 SMEs (small and medium-sized enterprises), internationalising 76–8, 91 contextual factors 84–5 current perspectives and strategy 83–7 deficiency model 77–8, 84, 91 dynamic capabilities perspective 89–90 employees 81–3 formal and informal training 78, 79, 81, 82–6, 88, 89, 91 and globalisation 76, 79 implications for IHRD research and practice 87–90 key actors in the HRD system 80–83 key IHRD features, barriers and enablers 78–83 owner-managers 80–81, 82, 86 resource-based view 89 social constructionist approach 88 training and development 78–80, 81, 82–3, 86 Smith, P. 181 Smith, T. W. 451 Snyder, W. 201 social capital 295–8, 307 bonding view of 296 bridging view of 296 and competencies 187, 303–4 economic or capital perspective 297 identity/identification 305–6

GARAVAN 9781781954171 PRINT.indd 479

implications for IHRD research and practice 306–7 sociological or social perspective 297 strong and weak ties 296, 298, 299, 302–3, 305 theories and models 298–301 transnational knowledge sharing and learning 304–6 transnational management and career development 301–4 and trust 296–7, 299, 305 social capital theory 300–301 social competence 130, 136 social constructionism 88, 200 social justice 19, 66–7, 397, 412 social networks 295, 307 implications for IHRD research and practice 306–7 theories and models 298–301 transnational knowledge sharing and learning 304–6 transnational management and career development 301–4 social resource theory 300 social robots 285 Soderquist, K. 241, 242, 244 Solow, R. M. 153 Sondergaard, M. 108 Song, J. 207 Soosay, C. 34, 42 Soskice, D. 140 Sparrow, P. 6, 104 specific domain competence 136 Spencer, L. 130 Spencer, S. 130 spillover theory 320–21 Spurk, D. 342 stakeholder focus (Green IHRD ) 174, 175, 176, 179, 183 Stanton, P. 35 Starbuck, W. 255 Stasz, C. 134 Steel, P. 108 Steinmetz, H. 453–4 STEM (science, technology, engineering, and mathematics) graduates/occupations 154, 162 Stening, B. W. 327 Stern, A. 204 Stirling, C. 61

22/09/2017 16:32

480  Handbook of international human resource development Storey, D. J. 86 storming (five-stage developmental model) 383–4 strategic choice theory 89 strategic conceptions (Green IHRD) 174 ‘strategic decoupling’ 187 Strategic Green IHRD 174, 175, 178–82 strategic leadership 261, 262–3 strategic learning capability 249–51, 263–4 applying strategic learning models 257 decision-making 251, 252, 253–4, 260, 261, 262, 264 fostering strategic learning capability in organizations 256 helping individuals and organizations strategically learn 257–60 implications for IHRD research and practice 261–3 learning 251, 252, 255–6 learning cultures and HRD interventions 260–61 rationality and intuition 254–5, 263, 264 sense-making 251, 252, 253, 254, 258, 268 strategic leadership 261, 262–3 ‘strategic learning’ 251–2 unlearning 251, 252, 255, 263 strategic offshore outsourcing 219–20, 221, 223, 224, 225, 227, 228–9 strategic talent 435 Stroh, L. K. 328 strong ties 298, 299, 302–3, 305 structural hole theory 298, 299–300 subject approach (talent development) 420 subjective career success 341–4 Sue, D. W. 408–9 Sullivan, S. E. 303 Sultana, M. A. 398 Sunde, U. 153–4 supply-driven interventions 86, 90, 133 Support (leader development model) 361 Surinach, J. 158–9

GARAVAN 9781781954171 PRINT.indd 480

sustainability 3, 6, 7, 16, 17, 149, 162, 370, 371 Green IHRD see Green IHRD and talent development 419, 426 and virtual HRD 279, 280–81, 286–7 sustainability conceptualization (Green IHRD) 174, 175, 176, 178–9, 183 Sustainable Chemistry Index 281 Swanson, R. A. 68–9, 399–400 SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis 282–3 System theory 103 systematic production capabilities 237, 240 tacit knowledge 81, 137, 195–6, 204, 205, 271, 272, 273, 305, 433 tactical conceptions (Green IHRD) 174 Tactical Green IHRD 174, 175–8 tactical offshore outsourcing 219, 221, 224, 228, 229 Tagliaventi, M. R. 306 talent development 2–3, 8, 13, 417–18, 437–8 articulation of talent needs 424 Asian Context 431–2 continuous demand for 437 creating developmental pathways 424–5 customization and personalization 436 developmental relationships 428–9 dimensions of 422–30 effective HR systems 425–6 exclusive approach 420 formal talent development programs 428 implications for IHRD research and practice 434–7 in IHRD context 418–22 inclusive approach 420 informal/non-formal talent development programs 429–30 job-based development programs 429

22/09/2017 16:32

Index  ­481 learning and development 417, 420, 423, 434 object approach 420 organizational-level focus 422, 423, 426–7 pipeline architecture 422–3, 426 role of line managers 435–6 self-managed development 436 strategic talent focus 435 subject approach 420 talent development programs 427–30 technical and generic competencies 418, 421–2, 425, 428 UK context 430–31 US Context 433–4 Tanova, C. 113 Taras, V. 108 Taylor, A. 82 TCE (transactional cost economics) theory 219, 220, 221 team building 385 Tears, R. S. 71 technical competencies 418, 421–2, 425, 428 Teck-Hong, T. 83 TelePresence 379 Teo, S. T. 69 Tesco 215–16 Thassanabanjong, K. 77 ‘think global’ 33, 44 Thomas, D. C. 108, 316, 337, 400, 411, 412 Thomas Jr., R. Roosevelt 398 Thomas, K. J. 287 Thorpe, R. 79 Tocher, N. 80 Tolbert, A. 323 ‘tolerance’ 407–8 Tomlinson, F. 67 tools and practices (lean management factor) 234–5, 241 Torbert, B. 259 Torbiorn, I. 317, 328 Toyota 232, 234, 245 TQC (total quality control) 233, 241 TQM (total quality management) 71, 233, 239 traction conceptions (Green IHRD) 174

GARAVAN 9781781954171 PRINT.indd 481

traditional global careers 338–41 training (lean management factor) 234–5, 241–2 training/learning and development diversity and inclusion 397, 413 expatriates and inpatriates 316, 325–6 and global careers 347, 350 and Green IHRD 171, 172, 179, 187, 189 human capital investment 149, 150–51, 152, 154, 155, 159–62, 163 INGOs, nonprofit and public sector organisations 60, 61, 63–4, 67–8, 70, 71–2 knowledge management 202–3, 204, 208, 209 and leader development 367, 368, 371 in MNCs 30, 31–3, 37–8, 40–44, 45 national cultural/cross‑cultural perspectives 101, 102–3, 104, 109, 111, 112–16, 120 offshoring and outsourcing 213–14, 220 and researching IHRD 456 in SMEs 78–80, 81, 82–3, 86 and talent development 417, 420, 423, 434 and virtual HRD 268, 282 transformational conceptions (Green IHRD) 174 Transformational Green IHRD 174, 175, 182–7 transformational offshore outsourcing 220–22, 224, 225, 227–9 translation/back translation technique 449 transnational management and career development 301–4 Tregaskis, O. 35, 36, 41, 102–3 Trehan, K. 81 Triandis, H. C. 359 ‘triple bottom line’ 171, 173, 175, 176, 186 Trompenaars, F. 105, 115 Trump, Donald 164

22/09/2017 16:32

482  Handbook of international human resource development trust 90, 138, 243, 271, 278, 358, 364, 371 and knowledge management 198, 206, 207 offshoring and outsourcing 217, 224, 225, 227 social capital and networking 296–7, 299, 305 Tsai, W. 305 Tsang, E. W. 196, 255, 306 Tsoukas, H. 200 Tung, R. L. 38, 39 type of employees (organisational characteristic) 55 UN (United Nations) 58, 197, 279, 280 uncertainty avoidance 101, 105, 106, 112–13, 117, 122, 204, 359–60, 363, 364 universalist dimension 106, 115, 119, 122 unlearning 251, 252, 255, 263 Unwin, L. 142 Urban Institute 61 Vainman, V. 100 Valentin, C. 173–4 Valentine, T. 250 Valerdi, R. 239, 240 value-based approach 101, 123 van de Bunt-Kokhuis, S. 421, 427 van der Sluis, L. 421, 427 Van Eck Peluchette, J. 113 Van Velsor, E. 357, 358, 360–61 Van Wijk, R. 198 Vandenberg, R. J. 448 Varner, I. I. 322 Vaughn, J. C. 296, 300 VCoPs (virtual communities of practice) 201–2, 207, 209 Venaik, S. 108 Verkhohlyad, O. 158 vertical/horizontal global teams 378, 380, 382 VET (vocational education and training) 3–4, 10, 129–30, 133–4, 135, 136, 139, 141–2, 225 VHRD (virtual HRD) 268–73, 289–90 challenges and opportunities for IHRD 277–81

GARAVAN 9781781954171 PRINT.indd 482

cross-cultural perspectives 272, 276, 277, 279, 287, 288–90 cultural relevance in 276, 277 and culture 271–2, 275, 276, 277 and digital divides 278–9, 287 ecosystems 287, 289 ethical issues 286–7 global challenges 279–81 and globalisation 268, 270, 271, 277, 279–80, 286 in IHRD contexts 275–7 implications for IHRD research and practice 286–9 Internet and webbed environment 269–72, 278–9, 284–5, 288, 289 key issues 273–4 and knowledge 271, 272 and learning agility 288 learning in 272–3 looking to the future 281, 284–5 and sustainability 280–81, 286–7 technology access and international context 277–8, 286 and technology development 281–4 virtual work 281–2 virtual/on-site global teams 378, 379, 381, 385–6, 388 Vischer, T. 153–4 Vo, A. 35 von Eckardstein, D. 61 VRIN (value, rarity, inimitability, and non-substitutability) typology 153 Wang, E. 201 Wang, G. G. 68–9, 277 Wang, J. 83, 87, 432 Wang, X. 2, 110, 276, 327 Watkins, K. 260, 273 weak ties 298, 299, 302 webbed environment 270–72, 285, 288, 289 WEF (World Economic Forum) 157–8, 162–3 Weinberger, L. A. 103 Welch, D. 13, 31 Wen, S. L. 331 Wenger, E. 200, 201 Westhead, P. 86 White, R. E. 238–9, 241 White, Robert 130, 131, 135, 143

22/09/2017 16:32

Index  ­483 Wickam, J. 37 wicked problems 175, 183, 184, 371 Wilde, K. D. 427 Wilkins, S. 112 Williams, K. 89 Willmott, H. 175 Wilson, J. P. 268 Wilson, M. S. 429 Wolfe, Thomas 199 Womack, J. P. 232, 244 Wong, C. S. 112 Wood, G. 36 Wood, S. J. 62–3 Woolcock, M. 297–8 work process knowledge 136 Workforce and Employment Pillar (WEF) 162–3 workforce size factor 42 work–life balance 430 World Bank 58 World Fair Trade Organization 280

GARAVAN 9781781954171 PRINT.indd 483

Wright, N. S. 450 Wright, P. M. 32, 244 WTO (World Trade Organization) 58 Wu, C. -Y. 79 Wu, F. 274 Wu, M. 331 Xu, Y. 198 Yamazaki, Y. 367 Yan, A. M. 348 Yong-Kean, L. 83 Zaheer, S. 29 Zahra, S. A. 255 Zhang, S. 274 Zheng, C. 34, 42 Zhu, G. R. 348 Zhuang, W. L. 331 Zidan, S. 69 Zones of Mutual Trust 138

22/09/2017 16:32

GARAVAN 9781781954171 PRINT.indd 484

22/09/2017 16:32