Globalization On The Waterfront By Harold Torrence

The substantial part of the article concentrates on the way companies and their managers should embrace contemporary multinational market. The author claims: “Adaptation strategies are better suited to opportunities opened by the shift in the locus of teh global growth. (..)Western markets must compete in big emerging markets like China and India. But they can;t forcé their way in.” That is why, it is critical to pay careful attention to political, economic, or cultural diversity. Ghemawat is skilled in giving pieces of advice to those who underestimate the importance of countries differences and similarities. He also says: “I propose that every MBA gradúate – and presumably every global manager – have a mínimum body of globalization related knowledge, including (..)an understading of how differences between countries can influence cross-border interactions; awareness of the benefits of teh additional cross-border integration’.

For avoiding failure, expatriate managers must have certain competencies. Here the competencies to ‘handle stress’ and ‘cultural adaptability’ are discussed. Ability to handle stress is an essential competence that all successful managers must have. Expatriate mangers experience stress due to the culture shock, unhappy family settings, work load, increased responsibilities and due to difficulties of everyday expatriate life. If the manager is competent to manage stress using sufficient stress management techniques, he will be able to control the situation and can become a successful manager. Another important competency required for the expatriate managers is cultural adaptability. An expatriate manage can perform well abroad if he has the competency to adapt to multi-cultural environments. If they have competence of cultural adaptability, they can easily develop a global perspective for their business. Such expatriate managers are able to recognize cross-border opportunities and can identify risks with a global perspective.

Most of the MNCs emanate from the developed countries and most of their investments target the diverse cultural societies in the developing nations, whose societies continue to change. These MNCs must undertake a number of strategic decisions in order to ensure their success in the multicultural societies.

Leadership in a globalizing world. The global economy has changed the way the corporations do business today. The melting of trade barriers among nations and their increasing inter connectedness, accelerated by technology has brought a profound impact on global business. The expanding global environment has extended the reach and goals of the companies with greater access to wider markets. Managers are looking to globalize operations, developing new markets for their products for better strategic business outcomes. Consumers also have better access to a greater variety of goods and services; and the competition to reach to the new markets with the right product is getting stronger among businesses. Globalization gives businesses better access to a global workforce, enables them to tap into international raw materials and financial resources. As the world economy is fast becoming a single interdependent system, businesses have competitors, customers, employees from anywhere in the world.

Charles Ray (2010) describes the effect of globalization on leadership by focusing on two main aspects of leadership: leadership and personnel management. Ray believes that globalization greatly complicates the planning process. “Establishing a clear vision in a closed market is a matter of understanding the environment and customers, and for a company that

For many global organizations, or organizations that produce or sell goods or services in more than one country, a difficult question is how to develop and place managers in foreign operations. Some people believe organizations should let foreign managers run foreign subsidiaries because of the large differences among national cultures while others believe that domestic managers should be trained to run foreign subsidiaries because of loyalty issues.

Most companies in the U.S. are going global. Whether its for cheaper labor or convenient supply networks, companies are competing in a global market. Management needs to start globally and culturally understanding their workforce based on their location to better manage this ever-changing workforce. On a

Companies strive for globalization, but the world just becomes more fragmented because of ideology, religion and mistrust. Studies have also shown that there’s no such thing as universal global manager instead, global manager is characterised by the nature of the work he or she does within an organisation with global operations. He or she has the capability to manage the complexity of business that is conducted across divergent cultures and time zones. (Financial Times Lexicon). Multinational with global business operations instead require four types of managers to succeed. They develop four kinds of managers and then unite them in a common purpose. They are the business manager, country managers, and functional managers and a set of senior executives to nurture the specialists and coordinate their efforts (critical skills needed today as compared to a decade ago). In the article, Bartlett and Ghoshal provide comprehensively researched examples of all four types of managers, exploring the different skills and perspectives they require to succeed. Their article lays out a model for a management structure that balances the local, regional, and global demands placed on companies operating across the world’s many borders (Financial Times Lexicon).

There are many factors, which determine which type of international employee MNCs will target. Factors such as living costs in the host country, cultural distance between subsidiaries and its headquarters and international employee’s role expectations need to be considered (Treven, 2006). MNCs also need to examine the advantages and disadvantages of each alternative approach and determine a general approach to international recruitment and selection. An ethnocentric approach is where the cultural values and business practices of the home country are executed because key management positions are all held by parent-country nationals (PCNs). Companies utilising the ethnocentric approach assume that their home country approach is the most successful for international recruitment and selection as it facilitates communication between subsidiaries and its headquarters and enables deeper understanding of the MNC’s goals (Kang & Shen, 2013). However, this approach should only be used when the business needs to maintain close control with the host country or when there is a lack of suitable HCNs. There are also negative consequences resulting from an ethnocentric approach, which include high costs associated with maintaining PCNs and their families in host countries, difficulties in adapting to the host-country environment and limited job and career opportunities for HCNs (Caligiuri & Stroh, 1995). In contrast, the polycentric approach

the skill sets and aptitudes to manage in global organizations. These skills include the culture, the

Economic liberalization in the world has led to the expansion of many business organizations on a global scale. This global economy has in turn increased the number of cross-cultural interactions among various multinational companies. Globalization refers to a process which deals in developing relatively standardized products with global appeals, as well as rationalizing operations throughout the world (Barto and Martin, 1998). To achieve these objectives, organizations require sending their selected representatives for overseas assignments to keep a check on the standards of their products and services abroad. Human resource experts all over the world agree that it is essential for any Multinational Company (MNC) to select, train, develop and retain employees who can work and live efficiently beyond their national boundary (Caligiuri, 2000).

A multinational corporation (MNC) or multinational enterprise (MNE) is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international

The impact of management in the globalization of business. The multinational corporation The impact of globalization on international business International business refers to a wide range of business activities undertaken across national borders. Along with rapidly increasing globalization, international business has become a popular topic and has drawn the attention of business executives, government officials and academics. International business is different from domestic business. At the international level, the globalization of the world economy and the differences between countries present both opportunities and challenges to international businesses. Business managers need to take account of the globalised business environment when making international strategic decisions and in managing ongoing international operations Globalization simplifies business management in the world. This is due to the advancement in technology, transport, communication, education, and regulations of trade that makes trade fair to all parties. This attracts more people to engage in international business and international trade. Managers within the global face a lot of challenges due to high competition in the industry, good decisions must be made in order to satisfy and maintain their customers and attract more customers for their products. Culture shock experienced by managers who work abroad Traditionally MNCs have sent one of their top performers abroad for senior roles abroad.

Globalization can be define as a process where regional economies, societies and cultures have become integrated through a globe-planning network of communication and trade. In my own point of view, management has stimulated the entire affair of modern business and trade.

This essay is about the impact of management on the globalization of business. The impact of management will be on the following management topics: the multinational corporation; culture shock experienced by managers who work abroad; fair trade issues; ethical issues faced by managers in dealing with international business; the difference managerial styles in selected countries (for example Japan vs. the U.S. or Saudi Arabia vs. the U.S.); and the managerial culture of a selected country.