The growing demands that companies are facing nowadays to expand their competitiveness in the global market, makes the presence of best talents - regardless of their origins - very crucial. In line with the phenomenon, international assignments become an important - yet problematic topic in HR strategic function. Materials presented during The 6th GI Net, Strategic International HR Process, September 25, 2013 by Prof. Dr. Hora Tjitra, Director of Tjitra & associates

1. Media Partner :
Strategic
International HR Process
Successful in Doing Business Abroad
6th Roundtable Discussion of Global Indonesian Network
Prof. Dr. Hora Tjitra
Tuesday, September 25th 2012

2. Agenda
1 Internationalization Strategy and Process
2 The Strategic Role of International Assignment and Talent Development
3 Managing Cultural Differences
4 Measurement of Cross-cultural Effectiveness
5 a Culture-sensitive International HRM
Strategic International HR Process / Sep. 2012 2

3. Internationalization
Strategy
and
Process
Strategic International HR Process / Sep. 2012 3

4. Why
is
Business
More
Global?
Technological
Advances
Shorter Product Reduced Trade
Life Cycles New Motivations Barriers
Lower
New
Production
Market
Ballooning R&D Cost Increased Economic
Investments Development
Traditional Motivations
Key Supplies
Scale
of Materials
Economies
/ Energy
Go International / Global
Strategic International HR Process / Sep. 2012 4

5. The
World
is
Flat
Innovation & Collaboration
Information & Technology
Competition / Threats
Opportunities
The world is flat ...
Strategic International HR Process / Sep. 2012 5

6. The
Strategic
Focus
of
Globalization
Globalization is two-pronged, incorporating both market opportunities and resources.
• Companies may choose to compete in the domestic market or in global market.
• Companies can leverage resources domestically or globally.
Global Global Resourcers Global Players
Resource Utilization
Local Players
Competes solely in the domestic
Domestic market with domestic resources,
such is the case for numerous food Global Exporters
and beverage companies, retail and
department stores and
supermarkets.
Domestic Global
Market Opportunities
A. Yeung, K. Xin, W. Pfoertsch, S. Liu, The Globalization of Chinese Companies, 2011
Strategic International HR Process / Sep. 2012 6

7. Globalization
Tree:
Depth
of
a
Company’s
Globalization
Global business Global market share
opportunities Global sales revenue
• Number of overseas employees
• Number of oversea R&D centers
Distribution and
utilization of global • Number of overseas manufacturing centers
resources • Establishment of overseas sales channels
• Capital sourced overseas
• Procurement sourced oversea
Global leadership
Global Global mindset and cross-culture integration
organizational
capabilities Global structure and processes
Sharing of global knowledge/best practices
A. Yeung, K. Xin, W. Pfoertsch, S. Liu, The Globalization of Chinese Companies, 2011
Strategic International HR Process / Sep. 2012 7

8. The
Strategic
Role
of
International
Assignment
and
Talent
Development
Strategic International HR Process / Sep. 2012 8

9. International
HR
and
Talent
Development
Strategy
International
Coordinated
Approach
International
Multinational
Decentralized
Approach
Export
Multinational
Transnational
Global
Centralized
Approach
Domestic
Global
Strategic International HR Process / Sep. 2012 9

10. The
Role
of
Culture
in
Organizations
Domestic Export International Multinational Global/
Transnational
Domestic Ability Must adapt Localized Need to
multiculturalis required to approach and structure reduces manage
m making an negotiate and its products need for cross- cultural
impact do business and services to cultural diversity inside
with foreign local cultures. awareness and outside
distributors Global cultural the firm. All
diversity levels need
strongly affects cross-cultural
external management
relationships, skill for
especially with maximum
potential flexibility
buyers and
foreign
workers
HIGH
Strategic
Importance
of Culture
LOW
Strategic International HR Process / Sep. 2012 10

11. Internationalization
Process
is
High
Investment
on
Talent
too
Globalization has led to more and more employees been sent on
international assignment. (Torbiorn, 1994; Dolins,1999, Hechanova,2003).
However, 16% to 40% of assignments end in failure (Black, 1988).
Therefore, the effective management of expatriate assignments is
an important challenge .
Of the many factors affecting the success of international assignments, cross-
cultural adjustment has probably received the most attention from
researchers (Shaffer et al,1999).
Strategic International HR Process / Sep. 2012 11

12. Why
Sending
Expatriates?
Control by
Finding suitable country nationals
putting trusted expatriate staff
is often more difficult than finding
in key jobs especially
secondees within a Head Office
in the early stages of a venture
Expatriates as a Difficulty of finding
means of control suitable host
country nationals
Competence Development
& Global Talent Resources
Carriers of
organizational Expatriates as a
culture symbol commitment
To have a cadre of expatriates to Many people in developing countries
act as ‘cultural standard bearers’ for believe that the developed world fears
the employing organization them catching up
Strategic International HR Process / Sep. 2012 12

13. Managing
International
Assignment
Circle
10% - 50% of expatriates returning early from their assignment.
Expatriates’ difficulties are costly for MNCs, ranging from $250,000 to $1 million.
(Eschbach et al., 2001)
• Internal marketing to motivate
employee for international assignment
Marketing
Reintegration Selection
• Return planing and International
• Developing expatriate-profiles
reintegration seminar Assignment and conducting selection
Supporting Preparation
• Conceptualization of an escorting • Preparation of the expatriates and
system during the assignment their families (e.g. cultural
(e.g. coaching, mentoring, etc.) awareness training, etc.)
Different types of cultural awareness training is helpful for each stage of the circle
Strategic International HR Process / Sep. 2012 13

14. Managing
Cultural
Differences:
Being
Sensitive
and
Effective
Strategic International HR Process / Sep. 2012 14

15. International
Assignees’
Adjustment
Process
• Oberg (1960) proposed a most discussed U-curve model of adjustment overtime.
Stress level
Euphoric phase
Surface Adjustment Adaptation
Backsliding
Disorientation and Rejection phase
Time
• Bhaskar-Shrinivas et al. (2005) examined the trajectory • Recently, Friedman et al. (2009) found that adjustment may not
of adjustment overtime , proposed a “S” model. always be a single continuous process but instead may
sometimes be a discontinuous process of gains and losses–
repeated cycles of confusion and clarity.
Strategic International HR Process / Sep. 2012 15

16. À Rome, 郷に入っては郷に従う.
fais comme les Romains.
入乡随俗
Allá donde fueres,
Lain ladang lain belalang,
haz lo que vieres.
lain lubuk lain ikannya.
Andere Länder, andere Sitten.
Is Cross-Culture Adaptation a Universal Value?
Tolerance? Heightened Sensitivity?
Differences Harmonization?
16

17. What
is
Intercultural
Competence
and
Sensitivity?
“To be effective in another culture, people must be interested in other cultures, be sensitive enough to notice cultural
differences, and then also be willing to modify their behavior as an indication of respect for the people of other cultures ”
(Bhawuk and Brislin, 1992)
Intercultural Competence
Motivation Intercultural Intercultural
Sensitivity Communication
Technical Competence
knowledge & skill
Cultural empathy
Respect for Language skill
differences Awareness of
Stress tolerance communication
symbols Verbal &
non verbal
Harmony Attribution process expression
Self Control preservation of information
Strategic International HR Process / Sep. 2012 17

18. Assessment
and
Selection
for
International
Assignee
Strategic International HR Process / Sep. 2012 18

19. Basis
of
Selection
Procedure:
International
Assignee
Competencies
Stress Management • Basis of the selection process are defined
competencies
Intercultural Context
Decision Making • Professional competence is already taken
account in the pre-selection
Analytical Thinking • The compilation of personal competence
should be done through a personnel
Teamwork diagnostic procedure
• The different competencies should be
Conflict Management verified in an intercultural context.
Strategic International HR Process / Sep. 2012 19

20. Intercultural
Assessment
Center:
Tools
and
Players
Intercultural Diagnostic
Expert Expert
Presentation in
front foreign
Audience
Intercultural Group Discussion
Case Study
Intercultural
Assessment
Center Activities
“Critical Incident” Intercultural
Questionnaire Role Play
Computer Based
Business
Simulation
Company Foreign
Representative Role Player
Strategic International HR Process / Sep. 2012 20

21. Sample
Agenda
Applied
in
2-­‐Days
Intercultural
Assessment
Center
Day 1 15:00 17:00 19:00 21:00 Day 2 8:00 10:00 12:00 14:00 16:00 18:00 20:00
Feedback
Single task incl.
presentation
1: Team task 2: Team task
Arrival
Observer
conference
Welcome
informal get
together
Introduction
Case Study
Interview Presentation
Questionnaire
Strategic International HR Process / Sep. 2012 21

22. a
Culture
Sensitive
International
HRM
Developing
Intercultural
Competence
Strategic International HR Process / Sep. 2012 22

23. “I hear and I forget,
I see and I remember,
I do and I understand.”
Learning is a process whereby the learners study their own actions
and experience in order to improve performance.
While classroom learning focuses on presentation of knowledge and
skills, action learning focuses on research into action taken and
knowledge emerges as a result that should lead to the improvement of
skills and performance.
23

24. Culture
sensitive
International
HRM
Individual Level
Type Field Culture
• International Assignees • Sales and Marketing
& Family • Country Specific
• Negotiation
• Virtual Worker • Regional focus
• Leadership & Teamwork
• Local Employees • General Awareness
• Technology Transfer
• Global Manager • (Diversity approach)
• Purchasing and Sourcing
• Decision Maker • ....
• ...
Group Level Organizational Level
• Cross-cultural Team Building • Business and Corporate Strategy
• International Project Management • HR and Diversity Policy (Guideline)
• Global Virtual Teamwork • Organizational Culture and Development
Strategic International HR Process / Sep. 2012 24

25. Diverse
Intercultural
Competence
Development
for
Different
Levels
• for Young Professionals: Accelerated Learning Program One month One month
Classroom Learning
Social Learning
Action Learning
Culture Experience
Best Practice Discussion
• for Executives: Executive Coaching
• for Management Team: Cross-Cultural Training/Workshop
In-Depth
Biography & Profiling Interviews
Personality w. Superiors
Interview
Behavioral Coaching
Feedback & Development Plan
around 9 months
Short Lecture
Overview on ...
Coaching discussion
Critical Incidents
Behavioral Coaching
Intercultural Competence
Strategic International HR Process / Sep. 2012 25

26. International
Management
and
Leadership
Program
Utilization & Optimization
Individual & Team Development
Knowledge
Assessment Team Coaching
Flash analysis & Material development
& Profiling Individual Coaching
Nine-months Action & Web-based Learning
Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.
Acquisition & Possession
Multiple Modules Classroom Learning & Benchmarking Study
Knowledge
Creating Action Managing Developing Creating Leading
Benchmark Final Presentation
aspirational Learning social network & Corporate Strategy & asp. org. transformation &
Study & Graduation
organization (1) Kick-Off enterprise knowledge Technology Innovation (2) diversity workforce
- Event 1 - - Event 2 - - Event 3 - - Event 4 - - Event 5 -
3 Days in Singapore 3 Days in Germany 4 Days in Switzerland 4 Days in China 1 Day in Indonesia
Strategic International HR Process / Sep. 2012 26

27. Tjitra&associates
Companies and Organizations
we have been working with ... *
• Tjitra & associates is a management consultancy founded by Dr.
Tjitra with offices in Hong Kong, Shanghai, Hangzhou and
Jakarta. Our work focuses on the CULTURE, TALENT and CHANGE.
• Over the last fifteen years, Dr. Tjitra and his team have collected
International project experiences at the global, regional and
national level in the US, Europe and Asia with senior leaders from
over forty countries.
• A team of multilingual psychologists are dedicated to strive for
excellence and provide tailor-made service solutions.
We devote ourselves in ensuring sustainable business results by
understanding the exact needs and situation of our clients.
* only selected list and not complete
Strategic International HR Process / Sep. 2012 27

28. Contact
Address
Hong Kong: Shanghai:
31/F, Tower One, Times Square 1F, No. 1388 Shan Xi North Road, Putuo District,
1 Matheson Street, Causeway Bay, HONG KONG Shanghai, 200060, P.R. China
香港銅鑼灣勿地臣街 1 號時代廣場⼀一座31樓 中国上海市普陀区陕西北路1388号⼀一楼
Phone +852 2824 8521 Phone +86 21 6149 8264
Fax +852 2107 3699 Fax +86 21 6149 8001
Contact Person:
Hangzhou: Jakarta: Kristina Aryanti
Suite 810, Guangyin Plaza, 42 East Fengqi Rd., Menara BCA 50th Floor, Jl. MH. Thamrin No. 1
Hangzhou 310010 P.R. CHINA Jakarta 10310, INDONESIA Phone + 62 21 2358 4616
Fax + 62 21 2358 4401
中国浙江省杭州市凤起东路42号广茵大厦810 Phone + 62 21 2358 4616
Fax + 62 21 2358 4401 Email: info@tjitra.com
Phone + 86 571 8763 1203
Fax + 86 571 8763 1210
Strategic International HR Process / Sep. 2012 28