Post on 25-Dec-2015
Prentice Hall 2003 Chapter 10 1
Developing a Global Management Cadre
Chapter 10
Prentice Hall 2003 Chapter 10 2
Developing a Global Management Cadre
Preparation, adaptation, and repatriation Global management teams The role of women in international management Global multiculturalism: Managing diversity Working within local labor relations systems
Prentice Hall 2003 Chapter 10 3
Maximizing Global Human Resources
Important areas of attention To maximize long term retention and use of international cadre
through career management so that the company can develop a top management team with global experience
To develop effective global management teams To understand, value, and promote the role of women and minorities
in international management in order to maximize those underutilized resources
To maximize the benefits of an increasingly diverse workforce in various locations around the world
To work with the host country labor relations system to effect strategic implementation and employee productivity.
Prentice Hall 2003 Chapter 10 4
Support Systems for a Successful Repatriation Program
(as recommended by Tung)
A mentor program to monitor the expatriate’s career path while abroad and upon repatriation
As an alternative to the mentor program, the establishment of a special organizational unit for the purposes of career planning and continuing guidance for the expatriate
A system of supplying information and maintaining contacts with the expatriate so that he or she may continue to feel a part of the home organization.
Prentice Hall 2003 Chapter 10 5
The Role of the Expatriate Spouse
Effective cross-cultural adjustment by spouses is more likely
when firms seek the spouse’s opinion about the international assignment and the expected standard of living, and
when the spouse initiates his or her own predeparture training (thereby supplementing the minimum training given by most firms).
Prentice Hall 2003 Chapter 10 6
Phases in the Expatriate Transition Process
The exit transition from the home country, the success of which will be determined largely by the quality of preparation the expatriate has received;
the entry transition to the host country, in which successful acculturation (or early exit) will depend largely on monitoring and support; and
the entry transition back to the home country or to a new host country, in which the level of reverse culture shock and the ease of re-acculturation will depend on previous stages of preparation and support.
Prentice Hall 2003 Chapter 10 7
The Expatriate Transition Process(Exhibit 10-1)
Exit transition(anticipatorysocialization)
Home CountryExit• Considered for expatriation• Sensitivity to other cultures• General training, int’l business expertise• Considered for assignment• Sensitivity to the host culture• Predeparture training• Selection
Entry transition(initial confrontation)
Adjustment(adaptation)
Exit transitionHost Country
Entry8. Departure and travel9. Arrival and initial confrontation10. On-site orientation and briefing11. Culture shockAdjustment12. Monitoring and support13. Acculturation, adaptation14. Failure or success
Prentice Hall 2003 Chapter 10 8
The Expatriate Transition Process(contd.)
Exit15. Considered for transfer or repatriation16. Withdrawal17. Orientation, career counseling
Entry transition
Adjustment
Home country or new host country
Entry18. Departure and travel19. Arrival and initial confrontation20. Orientation and briefing21. Reverse culture shock or new culture shockAdjustment22. Monitoring and support23. Acculturation, adaptation
SuccessFailure
Prentice Hall 2003 Chapter 10 9
Good Practices Used by Companies in Making International Assignments
They focus on knowledge creation and global leadership development
They assign overseas posts to people whose technical skills are matched or exceeded by their cross-cultural abilities
They end expatriate assignments with a deliberate repatriation process.
Black and Gregersen
Prentice Hall 2003 Chapter 10 10
Global Management Teams
The term global management teams describes collections of managers from several countries who must rely on group collaboration if each member is to experience the optimum of success and goal achievement.
Prentice Hall 2003 Chapter 10 11
Global Teams in the Modern Global Enterprise(Exhibit 10-3)
Global Global Networked InternationalEnvironment Strategy Global Teams
Organization
Global competition;Technologicaldevelopments;Markets;Government policies
Optimizingglobalresources forcompetitiveadvantage
Global coordinationand integration;local responsiveness;organizationalstructure, systems;personnel policiesand reward systemsthat support cooperation
CosmopolitanHQ’s teams; strategicdevelopment teams;HQ’s subsidiary teams;technology transferteams; coalition (jointventure) teams
Prentice Hall 2003 Chapter 10 12
Criteria for Evaluating the Success of International Teams
Do members work together with a common purpose? Is this purpose something that is spelled out and felt by all to be worth fighting for?
Has the team developed a common language or procedure? Does it have a common way of doing things, a process for holding meetings?
Does the team build on what works, learning to identify the positive actions before being overwhelmed by the negatives?
Does the team attempt to spell out things within the limits of the cultural differences involved, delimiting the mystery level by directness and openness regardless of the cultural origins of participants?
Prentice Hall 2003 Chapter 10 13
Criteria for Evaluating the Success of International Teams
(contd.)
Do the members recognize the impact of their own cultural programming on individual and group behavior? Do they deal with, not avoid, their differences in order to create synergy?
Does the team have fun? (Within successful multicultural groups, the cultural differences become a source of continuing surprise, discovery, and amusement rather than irritation or frustration.)
Indrei Ratiu
Prentice Hall 2003 Chapter 10 14
The Role of Women in International Management
(Adler’s recommendations)
Avoid assuming that a female executive will fail because of the way she will be received or because of problems experienced by female spouses
Avoid assuming that a woman will not want to go overseas
Give female managers every chance to succeed by giving them the titles, status, and recognition appropriate to the position – as well as sufficient time to be effective.
Prentice Hall 2003 Chapter 10 15
Global Multiculturalism: Managing Diversity
Benefits of managing diversity Reducing costs of high levels of turnover and
absenteeism Facilitating recruitment of scarce labor Increasing sales to members of minority culture groups Promoting team creativity and innovation Improving problem solving Enhancing organizational flexibility
Prentice Hall 2003 Chapter 10 16
Dimensions of Workforce Diversity(Exhibit 10-5)
National originGender
Family situation
Race
Sexual orientation
Marital status
Language
Religion
Culture
Age
Physical abilitySocioeconomic status
WorkforceDiversity
Prentice Hall 2003 Chapter 10 17
Diversity Program Guidelines
Develop and communicate a broad definition of workplace diversity, including all kinds of differences, such as race, gender, age, work, and family issues.
Attain visible commitment from top managers to support programs, and communicate to employees the importance of diversity to the firm’s competitive stance – that it is not just a matter of sensitivity training. Hold managers accountable for meeting diversity goals.
Avoid stereotyping groups of employees by using titles for them; focus instead on what all employees have in common, and on each individual’s value to the firm.
Prentice Hall 2003 Chapter 10 18
Diversity Program Guidelines(contd.)
Set up a broad, diverse pool of talented people to be trained and eligible for job promotion or selection; but let it be known that the best person will get the job – and stick by that.
Set up regular training programs with the goal to gradually change the corporate culture by educating workers about employee similarities as well as differences and the value those differences bring to the firm.
Prentice Hall 2003 Chapter 10 19
GE Diversity Practices
Top management commitment and involvement Integrated diversity strategy Campus recruiting Hires expanded at top level to signal commitment and provide role
models Career management Management of work/family issues (e.g., child care and flextime) Diversity education and training Communications Community outreach
Prentice Hall 2003 Chapter 10 20
Labor Relations
The term labor relations refers to the process through which managers and workers determine their workplace relationship. This process may be through verbal agreement and job descriptions, or through a union written labor contract which has been reached through negotiation in collective bargaining between workers and managers.
Prentice Hall 2003 Chapter 10 21
Dimensions of the Labor-Management Relationship
The participation of labor in the affairs of the firm, especially as this affects performance and well-being
The role and impact of unions in the relationship Specific human resource policies in terms of
recruitment, training, and compensation.
Prentice Hall 2003 Chapter 10 22
Constraints in the Labor-Management Relationship
Wage levels which are set by union contracts and leave the foreign firm little flexibility to be globally competitive
Limits on the ability of the foreign firm to vary employment levels when necessary
Limitations on the global integration of operations of the foreign firm because of incompatibility and the potential for industrial conflict.
Prentice Hall 2003 Chapter 10 23
Trade Union Decline in Industrialized Countries(Exhibit 10-6)
0 20 40 60 80 100
1995
1985
Sweden
Australia
UK
Germany
New Zealand
Japan
US
France
% of workforce in trade unions
Prentice Hall 2003 Chapter 10 24
Convergence in Labor Systems
Convergence in labor systems occurs as the migration of management and workplace practices around the world results in the reduction of workplace disparities from one country to another. This occurs primarily as MNCs seek consistency and coordination among their foreign subsidiaries, and as they act as catalysts for change by “exporting” new forms of work organization and industrial relations practices.
Prentice Hall 2003 Chapter 10 25
Trends in Global Labor Relations Systems(Exhibit 10-7)
Forces for Global Current System Forces to Maintain orConvergence Establish Divergent Systems
Global competitivenessMNC presence or consolidationinitiativesPolitical changeNew market economiesFree-trade zones: harmonization(EU), competitive forces (NAFTA)Technological standardization, ITDeclining role of unionsAgencies monitoring world labor practices
National labor relationssystems and traditionsSocial systemsLocal regulations and practicesPolitical ideologyCultural norms