Developing a Global Management Cadre Chapter 10

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.

Skills Learned Abroad Managerial skills Tolerance for ambiguity Multiple perspective Ability to work with and manage others

Developing an International Management Cadre Preparation, Adaptation, and Repatriation The Role of the Expatriate Spouse Expatriate Career Management The Role of repatriation in developing a global management cadre

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.

Organizational Culture Organizational Socialization The Adjustment Model Job Nonwork Individual Mode of Adjustment Organizational Culture Organizational Socialization

Culture Shock Culture shock is a state of disorientation and anxiety about not knowing how to behave in an unfamiliar culture. The cause of culture shock is the trauma people experience in new and different cultures, where they lose the familiar signs and cues that they had used to interact in daily life and where they must learn to cope with a vast array of new cultural cues and expectations.

Stages of Culture Shock Honeymoon – when positive attitudes and expectations, excitement, and a tourist feeling prevail Irritation and hostility – the crisis stage when cultural differences result in problems at work, at home, and in daily living Gradual adjustment – a period of recovery in which the “patient” gradually becomes able to understand and predict patterns of behavior, use the language, and deal with daily activities, and the family starts to accept their new life Biculturalism – the stage at which the manager and family members grow to accept and appreciate local people and practices and are able to function effectively in two cultures

Subculture Shock Subculture shock occurs when a manager is transferred to another part of the country where there are cultural differences – essentially from what she or he perceives to be a “majority” culture to a “minority” one.

Categories of Success for Expatriate Managers Job factors Relational dimensions such as cultural empathy and flexibility Motivational state Family situation Language skills

Major Causes of Expatriate Failure Selection based on headquarters criteria rather than assignment needs Inadequate preparation, training, and orientation prior to assignment Alienation or lack of support from headquarters Inability to adapt to local culture and working environment Problems with spouse and children – poor adaptation, family unhappiness Insufficient compensation and financial support Poor programs for career support and repatriation

Repatriation of Expatriates Reasons for Returning Duty is finished overseas Want children educated in a home-country school Not happy with the overseas assignment Spouse or children do not want to stay Fail to do a good job at the task assigned

Repatriation of Expatriates Readjustment Problems The “out of sight, out of mind” syndrome Organizational changes made during the time the individual was abroad may make one’s position redundant Technological advances in the parent headquarters may render one’s existing skills and knowledge obsolete

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.

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.

Global Teams in the Modern Global Enterprise (Exhibit 10-2) Global Global Networked International Environment Strategy Global Teams Organization Global competition; Technological developments; Markets; Government policies Optimizing global resources for competitive advantage Global coordination and integration; local responsiveness; organizational structure, systems; personnel policies and reward systems that support cooperation Cosmopolitan HQ’s teams; strategic development teams; HQ’s subsidiary teams; technology transfer teams; coalition (joint venture) teams

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.