Global Dimensions of Management

1
Chapter 5

• Global Dimensions of Management

2
Planning Ahead Chapter 5

• What are the international management challenges
  of globalization?
• What are the forms and opportunities of
  international business?
• What is culture and how does it relate to global
  diversity?
• How do management practices and learning transfer
  across cultures?

3
What are the International Management Challenges
of Globalization?

• Key concepts in the challenges of globalization
• Global economy
• Globalization
• International management
• Global manager

4
Internationalization Management Globalization

• Globalization
• the process of growing interdependence among
  elements of the global economy
• International Management
• Involves managing operations in
• more than one country
• Global Manager
• Culturally aware and informed on international
  affairs

5
What are the International Management Challenges
of Globalization?

• Europe
• European Union (EU)
• Political and economic alliance European
  countries that agreed to support mutual economic
  growth
• Expanding to at 22 member countries with 375
  million consumers

6
What are the International Management Challenges
of Globalization?

• The Americas
• North American Free Trade Agreement (NAFTA)
• Agreement for free flow of goods and services
  between the Canada, Mexico, and United States
• Free Trade of the Americas (FTAA) Alaska to
  Chile is a possibility

7
What are the International Management Challenges
of Globalization?

• Asia and the Pacific Rim
• Economic power of China and Japan
• Growth in other Pacific Rim countries
• Asian countries represent a third of the global
  marketplace

8
What are the International Management Challenges
of Globalization?

• Africa
• Increased attention to stable countries
• Beckons international business
• South African Development Community (SADC) links
  14 countries in trade and economic development

9
Reasons for Engaging in International Business

• Profits
• Customers
• Suppliers
• Capital
• Labor

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Complications in the Global Business Environment

• Environment is complex, dynamic, and highly
  competitive.
• Global business executives must deal with
  differences in the environment of business in
  different countries.
• World Trade Organization resolves trade and
  tariff disputes among countries.
• Protectionism can complicate global trading
  relationships.

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CULTURE Shared ways of thinking and doing
things
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POPULAR CULTUREDifferences that the Traveler
Notices

• Time -- monochronic vs. polychronic
• Space -- interpersonal distance
  proxemics
• Language -- high context vs. low context
• Religion -- traditions and respect for them

CULTURE SHOCK -- discomfort felt
when experiencing cultural differences
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Management across Cultures

• Comparative management
• How management systematically differs among
  countries and/or cultures.
• Global managers
• Need to successfully apply management functions
  across international boundaries.

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Management across Cultures

• Planning and controlling
• Complexity of international environment makes
  global planning and controlling challenging.
• Planning and controlling risks
• Currency risk
• Political risk

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Management across Cultures

• Organizing and leading
• Multinational organization structures
• Global area structure
• Global product structure
• Staffing international operations
• Competent locals
• Expatriates

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Are Management Theories Universal?

• Are management theories universal?
• U.S. management theories may be ethnocentric.
• Participation and individual performance are not
  emphasized as much in other cultures.
• Not all Japanese management practices can be
  applied successfully abroad.

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How do Management Practices and Learning
Transfer across Cultures?

• Global organizational learning
• Companies can and should learn from each other.
• Readiness for global organizational learning
  varies based on managerial attitudes.
• Ethnocentric attitudes
• Polycentric attitudes
• Geocentric attitudes
• Be alert, open, inquiring, but always cautious.

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What are the key individual competencies
requiredfor success in global workplace?

• Make your list of competencies ..

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Competencies for Global Success

• Ability to value differences in people
• Flexibility
• Language skills
• Emotional adaptability and stability
• Interpersonal skills in listening, coaching
• ..continued next slide

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Competencies for global success, continued

• Sensitivity
• Ability to deal with conflict, ambiguity
• Social intelligence
• Ability to understand non-verbal styles
• of communication

Source Is Your Company Really Global, Business
Week (12/1/97).
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Chapter 5 Review

• What are the international management challenges
  of globalization?
• What are the forms and opportunities of
  international business?
• What is culture and how does it relate to global
  diversity?
• How do management practices and learning transfer
  across cultures?