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