1. © 2008 Pearson Prentice Hall 10-1 Chapter 10: Developing a Global Management Cadre PowerPoint by Hettie A. Richardson Louisiana State University

2. © 2008 Pearson Prentice Hall 10-2 Opening Profile: Foreign from the Start Philip Shearer, Group President, Clinique, Estée Lauder, NY Important to remain yourself if others are to perceive you as trustworthy and credible But necessary to adjust to local cultures too

3. © 2008 Pearson Prentice Hall 10-3 Preparation, Adaptation, Repatriation Reverse culture shock occurs because Reintegration is difficult Expatriates are often “out of sight, out of mind” Feelings of alienation from “home” Poor management of expatriates means fewer will be willing to take assignments

4. © 2008 Pearson Prentice Hall 10-4 Successful Repatriation Programs Mentor programs Career planning and guidance units A system for maintaining contact with expatriates

5. © 2008 Pearson Prentice Hall 10-5 The Role of the Expatriate Spouse 60% of expatriate spouses are employed before the assignment, but only 21% are employed during the assignment Spouse adjustment is more likely when: The firm seeks the spouse’s opinion The spouse initiates predeparture training

6. © 2008 Pearson Prentice Hall 10-6 The Expatriate Transition Process Exit from the home country Entry to the host country Entry transition Adjustment (adaptation) Exit transition Entry back to the home country Entry transition Adjustment

7. © 2008 Pearson Prentice Hall 10-7 Reasons for Poor Expatriate Retention Expatriates are highly marketable Overseas compensation packages are more generous than those at home Expatriates feel unappreciated at home and on assignment

8. © 2008 Pearson Prentice Hall 10-8 The Role of Repatriation in Developing a Global Cadre Successful expatriates acquire skills: Managerial skills Tolerance for ambiguity Multiple perspectives Ability to work with and manage others Ability to do business overseas

9. © 2008 Pearson Prentice Hall 10-9 The Role of Repatriation in Developing a Global Cadre Booz, Allen, Hamilton’s KOL intranet Best practices: Focus on knowledge creation/leadership development Use assignees with high technical and cross-cultural skills Have a deliberate repatriation process

10. © 2008 Pearson Prentice Hall 10-10 Global Management Teams The effects of multicultural teams: Domestic: Mostly internal operations International: Relationships among buyers, sellers and other intermediaries Multinational: Internal, across culturally diverse managers and technical people

11. © 2008 Pearson Prentice Hall 10-11 Challenges for “Virtual” Global Teams Geographic dispersal Cultural differences Language and communication Technology

12. © 2008 Pearson Prentice Hall 10-12 Future Needs for Virtual Training How to lead a virtual team meeting How to coach and mentor virtually How to monitor team progress How to use communication technologies How to manage team boundaries

13. © 2008 Pearson Prentice Hall 10-13 Managing Transnational Teams Honeywell Bull (HBI) A joint venture between three companies Teams have front-end involvement Goal is to integrate cultural values, traditions, and norms

14. © 2008 Pearson Prentice Hall 10-14 Criteria for Evaluating Transnational Team Success Do members work together with a common purpose? Has the team developed a common language or procedure? Does the team build on what works, learning to identify the positives?

15. © 2008 Pearson Prentice Hall 10-15 Criteria for Evaluating Transnational Team Success Does the team spell out matters within the limits of the cultural differences involved? Do members recognize the impact of their own cultural programming on individual and group behavior? Does the team have fun?

16. © 2008 Pearson Prentice Hall 10-16 Management Focus: Japan’s Neglected Resource By tradition women are hired primarily for clerical tasks and tea serving; they are known as “office ladies” Could expanding women’s roles help end Japan’s 13-year economic slump?

17. © 2008 Pearson Prentice Hall 10-17 Management Focus: Japan’s Neglected Resource Women’s lack of participation may shave.6% off annual growth Average profits are higher in companies comprised of 40-50% women Population decline could cause huge labor shortages

18. © 2008 Pearson Prentice Hall 10-18 Management Focus: Japan’s Neglected Resource Women are often illegally dismissed for pregnancy Government officials complain declining birth rates are due to the over-education of women Women say the problem is lack of day care and very long working hours

19. © 2008 Pearson Prentice Hall 10-19 The Role of Women in International Management Even US managers are reluctant to give women expatriate assignments Evidence suggests foreigners are viewed first as foreigners

20. © 2008 Pearson Prentice Hall 10-20 Working with Local Labor Relations Systems Labor relations and collective bargaining Three dimensions to consider: The participation of labor in firm affairs The role and impact of unions Human resource policies

21. © 2008 Pearson Prentice Hall 10-21 Working with Local Labor Relations Systems Labor relations constraints: Wage levels set by unions Limits on the firm’s ability to vary employment levels Limitations on the global integration of operations Example: Europe

22. © 2008 Pearson Prentice Hall 10-22 Organized Labor Around the World Union membership is in decline Industrial, craft, conglomerate, and general unions Labor unions must be understood within their given contextual environment

23. © 2008 Pearson Prentice Hall 10-23 Management Focus: China Empowers Unions The “iron rice bowl” China is adopting a new law to empower unions and protect workers’ rights Foreign companies operating in China are protesting this move

24. © 2008 Pearson Prentice Hall 10-24 Convergence in Labor Systems Forces for convergence: Merger of ICFTU and WCL MNC desire for consistency and coordination Increased monitoring of labor conditions Political and cultural shifts

25. © 2008 Pearson Prentice Hall 10-25 Divergence in Labor Systems Most MNCs still adapt practices to national traditions The role of political ideology, overall social structure, and history of industrial practices

26. © 2008 Pearson Prentice Hall 10-26 NAFTA and Labor Relations in Mexico Labor issues subject to review under NAFTA: minimum wages, child labor, and safety Workers believe MNCs use blacklists, intimidation and economic pressure to oppose union organization Example: General Electric

27. © 2008 Pearson Prentice Hall 10-27 Comparative Management in Focus: Labor Relations in Germany Codetermination law (mitbestimmung) is coming under pressure Union works councils are “co-managers” German unions are increasingly willing to make concessions Linde and IG Mettal

28. © 2008 Pearson Prentice Hall 10-28 Comparative Management in Focus: Labor Relations in Germany The influence of Daimler-Chrysler and the US The German model holds that competition should not be based on cost What is the value of codetermination?