Prentice Hall 2003Chapter 101 Developing a Global Management Cadre Chapter 10

Prentice Hall 2003Chapter 102 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 2003Chapter 103 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 2003Chapter 104 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 2003Chapter 105 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 2003Chapter 106 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 2003Chapter 107 The Expatriate Transition Process (Exhibit 10-1) Exit transition (anticipatory socialization) Home Country Exit 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 transition Host Country Entry 8. Departure and travel 9. Arrival and initial confrontation 10. On-site orientation and briefing 11. Culture shock Adjustment 12. Monitoring and support 13. Acculturation, adaptation 14. Failure or success

Prentice Hall 2003Chapter 108 The Expatriate Transition Process (contd.) Exit 15. Considered for transfer or repatriation 16. Withdrawal 17. Orientation, career counseling Entry transition Adjustment Home country or new host country Entry 18. Departure and travel 19. Arrival and initial confrontation 20. Orientation and briefing 21. Reverse culture shock or new culture shock Adjustment 22. Monitoring and support 23. Acculturation, adaptation Success Failure

Prentice Hall 2003Chapter 109 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 2003Chapter 1010 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 2003Chapter 1011 Global Teams in the Modern Global Enterprise (Exhibit 10-3) GlobalGlobalNetworkedInternational EnvironmentStrategyGlobalTeams 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

Prentice Hall 2003Chapter 1012 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 2003Chapter 1013 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 2003Chapter 1014 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 2003Chapter 1015 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 2003Chapter 1016 Dimensions of Workforce Diversity (Exhibit 10-5) National origin Gender Family situation Race Sexual orientation Marital status Language Religion Culture Ag e Physical ability Socioeconomic status Workforce Diversity

Prentice Hall 2003Chapter 1017 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 2003Chapter 1018 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 2003Chapter 1019 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 2003Chapter 1020 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 2003Chapter 1021 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 2003Chapter 1022 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 2003Chapter 1023 Trade Union Decline in Industrialized Countries (Exhibit 10-6) % of workforce in trade unions

Prentice Hall 2003Chapter 1024 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 2003Chapter 1025 Trends in Global Labor Relations Systems (Exhibit 10-7) Forces for Global Current SystemForces to Maintain or ConvergenceEstablish Divergent Systems Global competitiveness MNC presence or consolidation initiatives Political change New market economies Free-trade zones: harmonization (EU), competitive forces (NAFTA) Technological standardization, IT Declining role of unions Agencies monitoring world labor practices National labor relations systems and traditions Social systems Local regulations and practices Political ideology Cultural norms