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Chapter 10: Developing a Global Management Cadre
PowerPoint by
Hettie A. Richardson
Louisiana State University
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Maximising Global Human Resources Use international cadre through career
management to develop a top management with global expirience
Develop effective global management teams Promote the role of women and minorities Work with the host-country labor relations
systems to ease the strategic implementation and higher the productivity
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The Expatriate Transition Process
Entry transition (initial confrontation)
Adjustment (adaptation)
Exit transition (anticipatory socialization)
Entry transition (initial confrontation)
Adjustment (adaptation)
Exit transition (anticipatory socialization)
Entry transition (initial confrontation)
Adjustment (adaptation)
Exit transition (anticipatory socialization)
Home country
Home country or
New Host country
Host country
Preparation
Adaption
Repatriation
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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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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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Global Management Teams
The term Global Management Team describes a collection of managers in or from several countries who must rely on group collaboration if each member is experience optimum
success and goal achievement
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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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Global Teams in the Global Enterprise
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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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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?
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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Managing Global Business Teams
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The Role of Women in International Management
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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?