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!