Chapter The Global Manager Key Points Issues facing

Chapter The Global Manager Key Points Issues facing Managers in DMNCs Skills of the Global Manager Managing International Assignments 11

Issues facing Managers in MNCs n Integrating large international acquisitions. n Understanding the meaning of performance and accountability in a globally integrated system of product flows. n Building and managing a worldwide logistics capability.

Issues facing Managers in MNCs n Developing country-specific corporate strategies that take into account the political as well as economic imperatives. n Forming and benefiting from collaborative arrangements around the world. n Balancing the pressures for global integration and local demands.

Skills of the Global Manager n Ability to develop and use global strategic skills. n Ability to manage change and transition. n Ability to manage cultural diversity.

Skills of the Global Manager n Ability to design and function in flexible organization structures. n Ability to work with others and in teams. n Ability to communicate. n Ability to learn and transfer knowledge in an organization.

Ability to Develop and Use Global Strategic Skills n n n Working knowledge of international relationships and foreign affairs, including global financial markets and exchange-rate movements. Balance between national responsiveness and exploitation of global economies of scale. “Think Globally, but Act Locally. ” - Know and understand the global strategy, yet enact it within the context of their local environment.

Ability to Manage Change and Transition n n Managers must be in agreement with the strategy Global managers will need the skills to manage the transitions from: q Independence/dependence to interdependence, q Control to coordination and cooperation, q Symmetry to differentiation.

Ability to Manage Cultural Diversity n Cultural awareness is important in order to: q q q Obtain high product acceptance in light of the fact that culturally rooted differences have a significant impact on a product’s success in a global market. Understand that the older the consumption pattern, the less likely a global product will be a success. Recognize universal themes by segmenting according to similarities instead of geographical differences.

Ability to Manage Cultural Diversity n Four distinct corporate attitude clusters: q q Ethnocentrism (Home Country Orientation). Polycentrism (Host Country Orientation). Regiocentrism (Regional Orientation). Geocentrism (World Orientation).

Ability to Manage Cultural Diversity (cont. ) n To manage diversity, domestically or globally, a modern human resource strategy requires some minimal orientations: q q An explicit recognition by headquarters that its own way of managing reflects the home culture values and assumptions. An explicit recognition by headquarters that foreign subsidiaries may have different ways of managing people, which may be more effective.

Ability to Manage Cultural Diversity (cont. ) n To manage diversity, domestically or globally, a modern human resource strategy requires some minimal orientations: q q A willingness to acknowledge cultural differences, and to take steps to make them discussible and, thus, usable. A commitment to the belief that more creative and effective ways of managing people can be developed as a result of cross-cultural learning.

Ability to Design and to Function in Flexible Organizations n Abilities and characteristics needed by the global manager to function in flexible organizations will be: q q High tolerance for ambiguity. New levels of creativity and inventiveness in organizational design. The ability to learn, be responsive, and be efficient, all simultaneously. The ability to identify and implement diverse managerial behaviors and ideas for ongoing renewal of the organization.

Ability to Design and to Function in Flexible Organizations n Abilities and characteristics needed by the global manager to function in flexible organizations will be: q q The ability to coordinate complicated financial, human resource, marketing and manufacturing interdependencies, not only across functions, but also within each business activity. The ability to recognize different manufacturing, marketing, and organizational problems and priorities across different locations and to accommodate these with new structures and processes.

Ability to Work with Others and in Teams n n Teams used solely for communication or to provide advice and counsel still exist, but more and more firms are also using teams in different and more participative and powerful ways. Global teamwork can do more than provide improved market and technological intelligence. It can yield more flexible business planning, stronger commitment to achieving worldwide goals, and closer collaboration in carrying out strategic change.

Ability to Work with Others and in Teams that span internal organization boundaries or that span the company’s outside boundary (joint venture partners, suppliers, customers) are often required

Ability to Communicate n Multilingual skills High levels of cross-cultural awareness and sensitivity. n Sensitive communications will also n q q Build trust, Build a strong corporate culture emphasizing shared, global value systems.

Ability to Learn and to Transfer Knowledge in an Organization n Managerial/Individual level skills: q q n Curiosity Broad Interests Openness to experiences Willingness to experiment and take risks Organizational skills: q q q Ability to coordinate, knowledge Ability to transfer knowledge Ability to use knowledge gained rapidly and effectively

Managing International Assignments n The process of developing globally minded managers with the requisite skills involves: q q q Selection Training Repatriation