chapter 10: developing a global management cadre

© 2008 Pearson Prentice Hall

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Chapter 10: Developing a Global Management

Cadre

PowerPoint by

Hettie A. Richardson

Louisiana State University

© 2008 Pearson Prentice Hall

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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

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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

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Successful Repatriation Programs

Mentor programs

Career planning and guidance units

A system for maintaining contact with expatriates

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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

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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

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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

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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

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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

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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

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Challenges for “Virtual” Global Teams

Geographic dispersal

Cultural differences

Language and communication

Technology

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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

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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

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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?

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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?

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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?

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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?