Cross-cultural Training And Workplace Performance

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NCVERCross-cultural training andworkplace performanceRobert BeanRobert Bean ConsultingThe views and opinions expressed in this document are those of the author/project teamand do not necessarily reflect the views of the Australian Government,state and territory governments or NCVER

Publisher’s noteAdditional information relating to this research is available in Cross-cultural training and workplaceperformance: Support document. It can be accessed from NCVER’s website http://www.ncver.edu.au/publications/2027.html .To find other material of interest, search VOCED (the UNESCO/NCVER international database http://www.voced.edu.au ) using the following keywords: cross cultural training; cultural awareness;workplace learning; capacity building; training provider; employee attitude; employer attitude. Australian Government, 2008This work has been produced by the National Centre for Vocational Education Research (NCVER)under the National Vocational Education and Training Research and Evaluation (NVETRE) Program,which is coordinated and managed by NCVER on behalf of the Australian Government andstate and territory governments. Funding is provided through the Department of Education,Employment and Workplace Relations. Apart from any use permitted under the Copyright Act 1968,no part of this publication may be reproduced by any process without written permission.Requests should be made to NCVER.The NVETRE program is based upon priorities approved by ministers with responsibility forvocational education and training (VET). This research aims to improve policy and practice in theVET sector. For further information about the program go to the NCVER website http://www.ncver.edu.au . The author/project team was funded to undertake this research via a grant underthe NVETRE program. These grants are awarded to organisations through a competitive process,in which NCVER does not participate.The views and opinions expressed in this document are those of the author/project team and donot necessarily reflect the views of the Australian Government, state and territory governmentsor NCVER.ISBNISBN978 1 921412 57 8 print edition978 1 921412 58 5 web editionTD/TNC 93.04Published by NCVERABN 87 007 967 311Level 11, 33 King William Street, Adelaide SA 5000PO Box 8288 Station Arcade, Adelaide SA 5000, Australiaph 61 8 8230 8400 fax 61 8 8212 3436email ncver@ncver.edu.au http://www.ncver.edu.au http://www.ncver.edu.au/publications/2027.html

About the researchNCVERCross-cultural training and workplace performanceRobert Bean, Robert Bean ConsultingThe 2006 census found that around 30% of people residing in Australia were born overseas, a trendunlikely to be reversed in the short-term, given the Australian Government’s recent decision tosignificantly boost the places in the permanent skilled migration program to help employers redresstheir skill shortages. In light of this, employers are likely to increasingly favour employees who can workand interact with people from different cultural backgrounds.This study by Robert Bean investigated the contribution to workplace performance of cross-culturaltraining, a term used to describe training that develops a person’s ability to interact effectively withindividuals from different cultures and in different cultural settings. The study is based on a survey of134 vocational education and training (VET) graduates. The practices and views of 38 training providersand 31 employers on the current and future provision of cross-cultural training are also described.The report highlights the positive experiences of VET graduates with cross-cultural training, as wellas employers’ support for it. It lists the challenges for cross-cultural training as perceived by trainers,a specific challenge being to ensure that there is sufficient and appropriate cross-cultural trainingembedded in training packages, particularly those covering sales and service industries, industries withhigh customer contact.Key messagesß The increasing cultural diversity of the Australian population and workforce means that the abilityto work across cultures is becoming a necessity for many workers.ß While employers acknowledge the benefits of having a culturally competent workforce, they donot yet see cross-cultural competencies as part of a generic skill set. Moreover, the current level ofcross-cultural training provision in vocational education and training courses appears to be quite low.ß Acquiring cultural competence is a lifelong process that can be assisted by the formalisation ofguidelines and criteria for the provision of cross-cultural training and the establishment of uniformbenchmarks for learner outcomes.Tom KarmelManaging Director, NCVERInforming policy and practice in Australia’s training system

AcknowledgementsThe author wishes to thank the following team members for their valuable advice andcontributions to this project: Nick Stone, Research Assistant Dr Carl Johann Rohlin, Statistician Michelle Circelli, NCVER Project Manager Giselle Mawer, Giselle Mawer and Associates Joanne Pyke, Victoria University of Technology.

ContentsTablesExecutive summaryBackground and introductionCross-cultural training in AustraliaDefinitionsCultural competence and cross-cultural training and the VET systemEffectiveness of cross-cultural trainingResearch objectives and methodology1112121315Contribution of cross-cultural training to workplace performanceof VET graduates17Profile of survey respondentsCross-cultural training experienceGraduates’ evaluation of cross-cultural trainingContribution of cross-cultural training to workplace performanceDemand and recommendations for future cross-cultural trainingComparisons with the public sector cross-cultural trainingeffectiveness studyCross-cultural training practice in VETProfile of survey respondentsCross-cultural training provisionCross-cultural training practiceEvaluation and benefits of cross-cultural trainingVET provider perceptions of workplace cultural competence trendsand practicesCross-cultural training facilitatorsComparisons with the public sector cross-cultural trainingeffectiveness studyDeveloping cultural competence through VETImplications of the research for VETDeveloping cultural competence through tions participating in the survey of VET current practiceOrganisations participating in the survey of employersFindings of the survey of VET graduatesFindings of survey of current practice in cross-cultural training invocational education and trainingE Findings of survey of employersSupport document 32343637384244485

Tables123456Distribution of cross-cultural training units by nationaltraining packages, expressed as a proportion of respondents17Highest level of qualification achieved that includedcross-cultural training18Evaluations of six key aspects of cross-cultural trainingprograms reported as a Likert scale rating and as a percentage18Contribution of cross-cultural training to workplaceperformance, expressed as a proportion of respondents20Provision of cross-cultural training in national trainingpackage qualifications246Types of cross-cultural training included in units of competencyor other training, expressed as a percentage of respondents257VET graduates’ reported benefits of cross-cultural training268Learning objectives of cross-cultural training, expressed as apercentage of respondents and compared with percentagesof respondents in the SCIMA study30C1 Subject areas included in cross-cultural training programs39C2 Other experiences contributing to understanding ofcultural differences39C3 Comparative evaluations of cross-cultural training programs40C4 Comparative satisfaction ratings by mode of training delivery40C5 Comparative satisfaction ratings by style of training delivery40C6 Comparative satisfaction ratings by recency oftraining completion40C7 Comparative ratings of the importance of cultural competence41D1 Modes of cross-cultural training delivery42D2 Learning objectives of cross-cultural training compared withSCIMIA study43E1 Comparison of ratings of importance of employee culturalcompetence for working with culturally diverse customersand co-workers45E2 Inclusion of cultural competence in human resourcemanagement practices45Cross-cultural training and workplace performance

E3 Workplace benefits attributed to graduates’ cultural competence 45NCVERE4 Organisational estimates of demand for job applicants andexisting employees to be able to demonstrate culturalcompetence will increase or decrease over the next five years46E5 Organisations planning to provide cross-cultural training toemployees in the next five years46E6 Other employer strategies for developing employee culturalcompetence46E7 Comparison of percentages of employers and VET graduateswho believe cross-cultural training should be mandatory for allemployees in their organisation46E8 Comparison of percentages of employers and VET graduateswho believe cross-cultural training should be mandatory for allemployees in their organisation in customer contact roles477

Executive summaryThis study investigated the contribution made by cross-cultural training to the workplaceperformance of vocational education and training (VET) graduates and examined current practicein its delivery in VET. The study also sought the views of employers on cultural competence andthe role of cross-cultural training.Research background and rationaleThe role of education systems in contributing to social cohesion has been recognised nationally andinternationally in recent years (McGaw 2006), as has the importance of social capital to humancapital (Putnam 2000). In multicultural societies in particular, social capital is underpinned bycultural competence, broadly defined as the ability to work effectively in situations characterised bycultural diversity. A review of the Australian and international literature for this study highlighted abroad recognition of the importance of cross-cultural training in the development of culturalcompetence and social capital.A recent national study of cross-cultural training in the Australian public sector completed by theauthor found the training to be effective in improving workplace performance and in contributingto multicultural policy objectives (Standing Committee on Immigration and Multicultural Affairs2006). In that study, as in this, the majority of employers surveyed predicted increased demand forcultural competence and cross-cultural training over the next five years in response to theexpanding cultural diversity of employees and customers. Increasing globalisation of businesspractices was also predicted to affect demand for cultural competence and cross-cultural training.Most employers surveyed included cultural competence in career development strategies andplanned to conduct cross-cultural training programs. Cultural competence was also included inrecruitment and performance appraisal processes.As the need for cultural competence becomes more widely recognised, employers in manyindustries will increasingly look for cultural competence among new recruits and for ways todevelop it among existing staff. In anticipation of these trends and demands, this report set out toindentify what the VET sector needs to do to better understand the nature, scope and effectivenessof its current and potential capacity to provide cross-cultural training. Decisions to include crosscultural training in VET qualifications require evidence that it contributes to the performance oflearners in their workplaces and careers. A literature review, wide-ranging consultations with keystakeholders and online surveys of VET graduates, educators and employers were conducted toaddress four research questions: How has cross-cultural training undertaken by VET students contributed to their performancein the workplace and benefited their employers? What is the current extent and range of practices for teaching VET students culturalunderstanding and developing their cultural competence for employment? What approaches and models of cross-cultural training provision are most effective in particularoccupational and industry domains and settings? What strategies and processes will best enable VET providers to develop and offer vocationaltraining leading to cultural competence?8Cross-cultural training and workplace performance

An online survey of VET graduates who had completed cross-cultural training as part of theirqualification in the last five years generated 134 responses. The graduates had received an average of31 hours of training in cross-cultural communication and working with cultural diversity. About 80%were employees in government agencies or private enterprises, the rest working for community andvoluntary organisations. The cross-cultural training undertaken focused on general awareness,specific cultures and working with or managing diversity within 12 national training packages.Sixty-one managers and teachers from 38 training providers who were identified as providing crosscultural training within the relevant training packages responded to an online survey. Cross-culturaltraining was also provided as part of English language training, staff induction, professionaldevelopment, Aboriginal cultural awareness and community programs. The most commonobjectives of cross-cultural training were to improve: customer service; workplace communication;community relationships; and compliance with equity policies and laws.A telephone survey was conducted with executives and middle managers from 34 medium-to-largeorganisations (18 private, 16 public sector), representing a wide range of industries, and fourindustry skills councils, covering the relevant national training packages.Contribution of cross-cultural training to VET graduates’workplace performanceAlmost 60% of graduates who responded rated their overall satisfaction with their cross-culturaltraining as above average or excellent. Around 70% stated that the training had greatly or verygreatly improved their: understanding of cultural diversity issues; cultural self-awareness; knowledgeof cross-cultural communication skills; understanding of other cultures; and confidence in dealingwith people from different cultures. Over 80% of graduates rated highly the importance of culturalcompetence for working with culturally diverse co-workers, clients and customers. These findingswere supported by the graduates’ qualitative responses, which commonly reported increasedawareness, acceptance, recognition, understanding and greater patience and empathy.These positive messages are reinforced by the findings that over 60% of graduates would likefurther cross-cultural training, 85% would recommend cross-cultural training to others, and 89%believe cross-cultural training should be mandatory for all employees in customer contact positions.The findings from the graduate survey are similar to those reported in the survey for the StandingCommittee on Immigration and Multicultural Affairs (2006) report. Together, the two studiesconfirm the effectiveness and contribution of cross-cultural training, while identifying areas forimprovement in the design, duration and approaches of cross-cultural training, organisationalsupport and follow-up, and the professional development of cross-cultural training facilitators.Current practice in cross-cultural training in VETThe VET providers’ ratings of perceived student satisfaction with their cross-cultural training andtheir improvements in workplace performance were very similar to those given by the graduatesthemselves. Providers’ ratings of the degrees of importance placed on cultural competence alsoclosely matched the ratings given by graduates and employers. This general congruence of ratingsacross the three groups lends validity to the results, as does their close similarity to the findings ofthe public sector study (Standing Committee on Immigration and Multicultural Affairs 2006).Over 90% of VET providers who responded expected increased demand over the next five yearsfrom employers for VET graduates to be culturally competent, particularly in the areas ofcommunity, health, business, government, hospitality, tourism and training. However, the currentscope of cross-cultural training provision appears limited. Fewer than 23% of the training providersidentified as providing qualifications that include diversity units responded, with several declining toNCVER9

participate because they did not provide cross-cultural training as such or had not done so in thestudy period of the previous five years.While over two-thirds of the 31 responding VET cross-cultural trainers had more than six yearscross-cultural training experience, 75% had not received any formal training in this area. Eight inten indicated they would like professional development and about half recommended thedevelopment of training resources reflecting the Australian context. They also identified areas forfurther research and the need for more consistency in policy and provision of cross-culturaltraining in the VET system. Their responses closely matched those of trainers in the StandingCommittee on Immigration and Multicultural Affairs (2006) study.Cross-cultural training effectivenessThe study identified numerous models and learning pathways for cross-cultural training, most ofwhich recognise that acquiring cultural competence is a lifelong process. While there are guidelinesand criteria for training and trainer effectiveness, the cross-cultural training field is diverse andcomplex and, furthermore, contains no universal benchmarks for quality or outcomes of training.The most common and most highly rated types of cross-cultural training undertaken by theresponding graduates were general cultural awareness, working with or managing cultural diversityand culture-specific training. The most highly rated training approaches balanced lecturing andinteractive exercises or combined lecturing and fieldwork. The knowledge and skills of the trainerswas also rated as one of the best aspects of cross-cultural training.Satisfaction ratings by graduates for elective cross-cultural training units were 12% higher than forcore units. While three-quarters of responding graduates said the duration of cross-cultural trainingwas appropriate, half suggested that increased time would improve the training. They alsorecommended increased interaction and content.Strategies for developing cultural competence through VETGiven the positive views on the value of cultural competence among graduates and employers andthe significant performance benefits reported, the VET sector should give serious consideration toexpanding the current cross-cultural training provision. The policy, curriculum and qualityframeworks are already in place. Support for the engagement and professional development ofcross-cultural training facilitators would help to ensure capacity and capability to meet theanticipated growth in demand. A study of the quality and availability of existing training resourceswould assist in identifying areas for new resource development.VET organisations need to be encouraged to formally review their current practices in theprovision of cross-cultural training, in terms of student and industry needs. Using these researchfindings as a basis for benchmarking, longitudinal evaluations of the vocational contribution ofcross-cultural training should be encouraged. The design and delivery of cross-cultural trainingshould also include strategies to increase the teaching and learning focus on the deeper cognitiveand attitudinal objectives of cross-cultural training and to ensure support for participants tocontinue their learning and apply it in their workplaces and communities.ConclusionThe findings of this study provide further evidence of the importance of cultural competence forindividual and or

not yet see cross-cultural competencies as part of a generic skill set. Moreover, the current level of cross-cultural training provision in vocational education and training courses appears to be quite low. ß Acquiring cultural competence is a life

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