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Welcome to class of
Global Manager
byDr. Satyendra Singh
www.uwinnipeg.ca/~ssingh5
Objective• To develop Global Manager
– Understand culture– Function in new environment– Create structure– Implement strategy– …
• No premature return from long-term assignment from abroad– Costs of failure can be very high
• Diversified MNCs have special issues
Diversified MNC Managers Face Substantive Issues
• Integrate large intl. acquisitions• Build worldwide logistic capability - 5Cs
– Character, cost, coverage, control, continuity
• Develop country-specific strategies– political and economic environment
• Form beneficial collaborative arrangements worldwide
• Balance pressures for global integration and local demands
Need certain set of traits and skills
Global Manager Traits: Now vs. Future
Skills of Global Manager• Global mindset
– Beyond learning culture and language
• Ability to– 1 develop and use global strategic skills– 2 manage change and transition– 3 manage cultural diversity– 4 design and function in flexible orgn structure– 5 work with others and in team– 6 communicate– 7 learn and transfer knowledge in an orgn.
1 Global Strategic Skills• No parochial views • Flexible – required in different culture• Good knowledge of
– International relations, Foreign affairs– Global financial markets– Exchange rate movements (interest, inflation…)
• Standardization vs. customization• Local yet should fit global strategy
– Detergent: liquid vs. solid (Europe)– Retailing: family/value pack vs. sachets (EM)– McDonald (beer), KFC (rice)
2 Change and Transition• Change
– Unstable environment – ongoing challenge– Switch b/w standardization «» customization– Needs reorganization of resources
• Human, technology, marketing, distribution…
• Managers must agree with the strategy– Otherwise poorly implemented– Country Mgr feel lost control Resignations
• Moved from customization standardization (HO)
• Transition through Alliances or IJV– Alliances/IJV more difficult to change than wholly-owned subsidiary
• Requires multiple trusting relationship
3 Cultural Diversity - EPRG• SRC: Self Reliance Criteria
– one’s own cultural values, experiences, and knowledge as a basis for decisions
• EU ↑ multicultural than US Canada– ↓ multicultural may be ↑ conflicts
• HO culture sh’d not dominate entire orgn culture• Ethnocentric: HCN, reward, HO superiority, ↑ control, ↓ risky
venture – export, sales affiliates• Polycentric: Recognize diff, have confidence, local• Regiocentric: Recognize regional differences• Goecentric: Optimize resources, best practices, superiority is
not based on nationality.• Performance: Geo>Regio/Poly>Ethnocentric
4 Flexible Orgn: Design and Function• Learn, responsive and efficient• Help people do more effectively
– Develop strategic thinking and action– Open communication of plans– Alignment bw HO and BO re. decision-making– High tolerance for ambiguity
• Coordinate within and bw LOB – Financial, HR, marketing, manufacturing…
• Identify SCA and prioritize across different locations– Accommodate the new structure and process
5 Working with People, Team• Due to specialization of people, complexity• What is team
– IJV partners, suppliers, customers…• Becomes clear county requirement
– Accounting• Economic reality vs. just standard accounting• Accounting vs. legal requirements are met• So, team develops intl. auditing standards
– Operations relationship oriented…• Participation in global team global outlook
global manager• Ex- International Journal production
6 Communications…• Diverse Group
– Multilingual– Cross-cultural awareness
• Particularly important in advertisements• Lawsuit launched against global media by local media• Global media wish to retain advertising revenue• Local media wish to control advertising content
– Sensitivity to colleagues, customers…• It leads to forming trust• Becomes corporate Culture• Shared Global value system
• Global communications – effectiveness?– Ex. Kellogg Cereals, perfumes…
6 Communications…
6 Communications
7 Knowledge Transfer• Globally competent highly curious
– Experiment, take risks – calculated vs blind
• MNCs use the knowledge gained by Mgrs and transfer effectively in another country– Corporate management responsibility
• Not all MNCs do that– Particularly, if mgr re-enter home country
Ex: a visitor may learn > local, then wrote a book!
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