Assignment

On

Developing Global Managers

Chapter: 21

Course No: MGT-502

Submitted to

Dr. Md. Ataur Rahman

Professor

Department of Management Studies

University of Dhaka

Submitted by

Team Name:

“Global Managers”

MBA (SIM), 13th Batch,

Name Roll
Faisal Ahmed Reefat 261
Amirul Islam Titas 262
Ahmadullah 263

Date of Submission: 24th January, 2012

1
 Letter of Transmittal
January 24th, 2012
Dr. Md. Ataur Rahman
Professor
Department of Management Studies,
University of Dhaka.

Subject: “Solicitation for acceptance of the Assignment on the Global Manger”

Sir,
It is an immense pleasure for us to submit the assignment on “The Global Manger” which
we have prepared by performing vigilant knowledge search regarding the global manager
to fulfill the requirement of MBA degree on “Strategic International Management” in the
Department of Management Studies, University of Dhaka.

In the course of the preparation of this assignment, we have studied various documents and
also gathered practical knowledge. In this assignment, we have tried to give my best effort.
Besides this, there may be shortcomings. We shall be pleased to answer any kind of query
you think necessary.

Now, we have placed this report before you for your kind approval. For any of your further
queries, we would be at your disposal at your convenience.

Sincerely Yours,
“Global Managers”, MBA (SIM), 13th Batch,

Name Roll
Faisal Ahmed Reefat 261
Amirul Islam Titas 262
Ahmadullah 263

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 Acknowledgement

It is hard today to use the word "globalization" without a certain sense of irony, rueful or
otherwise. Raven by Ideology, religion, and mistrust, the world seems more fragmented,
more at odds, than at any time. But, however deep the political divisions, business
operations continue to span the globe and executives still have to figure out how to run
them efficiently and well. There is a proverb regarding the future:

“We are borrowing from the future…what we teach the next

generation is a reflection of ourselves………..”

Tommy Benjamin from Old Crow, at the 1999 summit in Mt.

Village, Alaska.

Global Managers have the same attributes just as the above. The main challenge here is to
integrate and coordinate these individuals in ways that will ensure success. People from
different cultures tend to misunderstand each other's behaviors or stereotype people from
other countries. It is essential to recognize the discrepancies between cultures in order to
work together effectively.

For this reason, it is our great privilege to express our gratitude to our creator Almighty for
such great opportunity to be in touch with some these evolutionary business concepts. We
also have to put our heartened feelings and gratitude for the kindness and assistance that
was provided to us to complete our assigned report as on the topic “The Global Manager.”
In preparing the proposed report we have taken great assistance, support and guidance
from the various professionals, articles, journals etc.

We also give our sincerest thankfulness to our course instructor “Professor Dr. Ataur
Rahman”, Department of Management Studies, University of Dhaka, to give us such an
opportunity to face these kinds of endeavors and provide platform to furnish our business
knowledge in the context of “International Management” and become effective and

3
efficient manager to make the business world more evolving and be a truly globalized
manager.

Preface

Multinational corporations need to recognize the importance of international management

development. Formal human resource programs, tied to business objectives, need to be
established. Ignoring the importance of global management development leads to missed
market opportunities. Understanding and support at the executive level is a necessity.
Human resource information systems need to include international data elements to help in
the identification of candidates. Training budgets have to shift course work from a
domestic focus to multicultural and international marketplace issues. The home and host
managers must agree to the objectives for the employee prior to the assignment start.
Repatriation assignments must align with the experience.

Success in today's international climate - a far cry from only a decade ago - demands
highly specialized yet closely linked groups of global business managers, country or
regional managers, and worldwide functional managers. This kind of organization
characterizes a transnational rather than an old-line multinational, interactional, or global
company. Transnational’s integrate assets, resources, and diverse people in operating units
around the world. Through a flexible management process, in which business, country, and
functional managers form a triad of different perspectives that balance one another,
transnational companies can build three strategic capabilities: global-scale efficiency and
competitiveness; national level responsiveness and flexibility; and cross-market capacity to
leverage learning on a worldwide basis.

While traditional organizations, structured along product or geographic lines, can hone one
or another of these capabilities, they cannot cope with the challenge of all three at once.
But an emerging group of transnational companies has begun to transform the classic
hierarchy of headquarters-subsidiary relationships into an integrated network of specialized
yet interdependent units. For many, the greatest constraint in creating such an organization

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is a severe shortage of executives with the skills, knowledge, and sophistication to operate
in a more tightly linked and less classically hierarchical network. In fact, in the volatile
world of transnational corporations, there is no such thing as a universal global
manager. Rather, there are four groups of Specialists;

 Business managers, (Strategist + Architect + Coordinator)

 Country managers, (Sensor + Builder + Contributor)

 Functional managers, (Scanner + Cross-Pollinator + Champion)

 Corporate managers, (Leader + Talent Scout + Developer)

And there are the top executives at corporate headquarters, the leaders who manage the
complex interactions among the four and can identify and develop the talented executives a
successful transnational requires.

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Introduction:
The global manager is a multidimensional individual who has developed the mind-set and
competencies to effectively function anywhere in the world. This individual is
knowledgeable in the arts, history, science, and the culture and psychology of people. It is
recognized that the standard managerial skills and competencies are not enough for the
global manager. He has to master more than concepts and theories. He will also have to
command new skills.

However there are certain competencies that only the global manager would require to be
effective. They are crucial to the function of the global manager in the global environment.
The design of the framework is important. It implies that all the competencies outlined are
interdependent of each other. One set of competencies cannot be achieved without
possessing the others and no one competency has greater weight than the other.

Meaning of Global Managers:

Traditional business methods are being made redundant by the surge of globalization.
Managers who continue to practice their traditional managerial skills long gained in
business schools are finding themselves ineffective in the global environment.
Globalization is a “conceptual situation where political borders become increasingly
irrelevant, economic interdependencies are heightened, and national differences due to
dissimilarities in societal cultures are central issues of business. The world, with its
complex and dynamic forces, becomes a global marketplace for global managers” (Kedia
and Mukherji 1999). In such a world only the ones who understand the impact
globalization wreaks and thus adapt accordingly will survive. Thus to be competitive in the
global marketplace the traditional managers must transcend and become global managers.

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Definition of Global Managers:
"When going global, you have to communicate to everyone what the company vision is
and what the long term goals are. And then you have to follow through and design
processes that force the interaction to continue. Every single employee must believe that
there is a great value in managing the company in an integrated way. To do that, you have
to bring people together on real projects that tackle real problems or that explores
opportunities on a cross border basis.”

David Whitwam, CEO, Whirlpool

In a 1992 article for Harvard Business Review, HBS professor Christopher A. Bartlett and
co-author Sumantra Ghoshal tackled the question, "What is a Global manager?" Their
answer then was that "there is no such thing as a universal global manager." Indeed,
multinationals required three kinds of specialists: business managers, country managers,
and functional managers, with a group of senior executives to coordinate the efforts of the
specialists.

In 2003, as globalization has become a much more pressing issue and the talents of global
managers are in high demand, has Bartlett changed his views? Cynthia D. Churchwell
interviewed him at his office at Harvard Business School.

Cynthia Churchwell: Since your article "What is a Global Manager?" was first published
in the Harvard Business Review eleven years ago, what key differences have you seen in
global managers? How have your own views changed?

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Christopher Bartlett: Well, fortunately, the basic argument has held up. But the world has
evolved and we do see some new patterns emerging. But first let's focus on the things that
have stayed constant.

Today, global managers need to see the world not just as a collection of national
marketplaces, but also as a source of scarce information, knowledge, and expertise—the
key resources required in the development and diffusion of innovation worldwide. So this
increasingly important capability really is about using one's global presence to promote
worldwide innovation and learning.

Now these three strategic imperatives have to be reflected in the multinational company's
organizational capability. And that is where the role of the global manager is shaped. We
argued that companies should not define this as an offline specialist role, but neither must
they try to make everyone global managers. Rather, there are three key groups who should
be involved.

Another big change is that companies are finally recognizing that being global is not just
about entering incremental overseas markets. It is also about accessing scarce resources.
And the scarcest of all resources is the human resource, particularly management. So the
assumption that "all the smart, capable people were born within a ten-mile radius of our
head office" is being eroded. As an Australian, I am aware that the current CEOs of
Kellogg and of Coca-Cola, and the last CEOs of Ford and Philip Morris, are all
Australians. And a recent BusinessWeek cover story tracked the impact that Indian
managers have had on American management.

To sum up, a major challenge for global companies is to develop a cadre of managers, who
can understand and respond to the needs of the international business environment. These
managers need to go beyond a narrow national perspective towards a multidimensional
view, which takes into account the requirements of the entire global system. In other
words, these companies have to create a cadre of people who are comfortable with 'global'
careers.

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Nomenclature of Global Managers:
The term “Global Manager” implies diverse managerial roles being played by a manager.
These roles are named as below:

1. Business Managers

Global business or product-division managers have one overriding responsibility; to further

the company's global scale efficiency and competitiveness. This task requires not only the
perspective to recognize opportunities and risks across national and functional boundaries
but also the skill to coordinate activities and link capabilities across those barriers. The
global business manager's overall goal is to capture the full benefit of integrated worldwide
operations. To be effective, the three roles at the core of a business manager's job are:

a. To serve as the strategist for his or her organization,

b. The architect of its worldwide asset and resource configuration, and

c. The coordinator of transactions across national borders.

2. Country Managers

The building blocks for most worldwide companies are their national subsidiaries. If the
global business manager's primary objective is to achieve global-scale efficiency and
competitiveness, the national subsidiary manager's is to be sensitive and responsive to the
local market. Country managers play the pivotal role not only in meeting local customer
needs but also in satisfying the host government's requirements and defending their
company's market positions against local and external competitors. The need for local
flexibility often puts the country manager in conflict with the global business manager.

3. Functional Managers

While global business managers and country managers have come into their own,
functional specialists have yet to gain the recognition due them in many traditional
multinational companies. Relegated to support-staff roles, excluded from important

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meetings, and even dismissed as unnecessary overhead, functional managers are often
given little chance to participate in, let alone contribute to, the corporate mainstream's
global activity. In some cases, top management has allowed staff functions to become a
warehouse for corporate misfits or a graveyard for managerial has-beens. Yet at a time
when information, knowledge, and expertise have become more specialized, an
organization can gain huge benefits by linking its technical, manufacturing, marketing,
human resources, and financial experts worldwide.

4. Corporate Manager

Clearly, there is no single model for the global manager. Neither the old-line international
specialist nor the more recent global generalist can cope with the complexities of cross-
border strategies. Indeed, the dynamism of today's marketplace calls for managers with
diverse skills. Responsibility for worldwide operations belongs to senior business, country,
and functional executives who focus on the intense interchanges and subtle negotiations
required. In contrast, those in middle management and frontline jobs need well-defined
responsibilities, a clear understanding of their organization's transnational mission, and a
sense of accountability-but few of the distractions senior negotiators must shoulder.

Meanwhile, corporate managers integrate these many levels of responsibility, playing

perhaps the most vital role in transnational management. The corporate manager not only
leads in the broadest sense; he or she also identifies and develops talented business,
country, and functional managers-and balances the negotiations among the three. It's up to
corporate managers to promote strong managerial specialists who can translate company
strategy into effective operations around the world.

Despite nearly two decades of corporate globalization efforts, many organizations still
struggle to find managers who are comfortable and effective in the increasingly global
economy. Most suffer both from a lack of cultural awareness when dealing with employees
and partners overseas and from a lack of experience managing increasingly complex
processes over long distances. Though a few insightful corporate giants such as General

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Electric, Cisco Systems, and Intel have made strides in developing successful global
managers, many human resources leaders and senior executives continue to be frustrated
with the available skills and resources

Importance of Global Managers:

The dawn of the Internet has triggered companies around the world to open their doors and
reach out to customers around the world. In order to run an international company so
much more efficiently and economically, the term ‘global Manager’ was created that
not only emphasized in protecting the well being of the company, but also function as
quality assurance to its customers around the globe.

a. Coping with Challenges: if people weren't challenging enough to handle, foreign

managers will also have to deal with procuring the right permits to operate
overseas. Upon being legally allowed to set up their business, said company will
then have to ensure that their product and services comply to the foreign country's
laws as well.

b. Preparing the local managers: Once the global manager has been successfully
installed in foreign country; he usually teaches the local managers this expertise.
c. Accelerating the local growth: applying the dexterity, a global manager helps to
accelerate the growth a firm as well as the host country’s economy.

d. Utilizing the host country’s resources: All the countries have its own natural
resources. But all are not adept enough to utilize those efficiently. The global
manager can use his expertise to utilize the local resources.

e. Creating employment: It is not a true concept that a global manager takes the seat
of a local manager. But with his knowledge and experience, he creates more jobs
for the local people.

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Critical Competencies of a Global Manager:
The global manager is a multidimensional individual who has developed the mind-set and
competencies to effectively function anywhere in the world. This individual is
knowledgeable in the arts, history, science, and the culture and psychology of people.
Below is a summary of the Seven (7) critical competencies from an INSEAD questionnaire
of more than 1,500 international managers.

1. Strategic Awareness:
The fundamental requirements of this competency are the continual
acquisition of information and the ability to synthesize that information to
produce new knowledge.

2. Adaptability in New Situations:

The key element of adaptability is being comfortable with not being in
control of how situations naturally evolve; particularly where chaos
appears to be occurring. The skill is to let go and trust the process.

3.
Sensitivity to Different Cultures:
The vital keys to cultural sensitivity are based upon resolving two
fundamental issues of human relationship: human equality and
ethnocentrism.
4. Ability to Work on International (or Multicultural) Teams:
International (or multicultural) teams are an absolute necessity for a
global operation. The fundamental requirements are valuing and
integrating cultural diversity to create a competitive advantage and
win/win situations.

5. Language Skills:
It is an inevitable necessity that any global manager be multilingual;

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 particularly with those countries where he or she conducts regular
business. It should be a necessity for those expatriates residing in
countries (or cultures) where the language is different from their native
language.

6. International Negotiating:
The essential competency in negotiation is to find a solution or an
agreement which is of mutual benefit to everyone involved. A successful
negotiation is a win/win situation for everyone.

7. Adaptability to Accelerated Change:

The most important element of adapting to change is a transformation in
mind-set from a resistant survival-base response to the realization that
change is viewed as a continual opportunity to mold the future, rather than
a crisis for movement.

Issues faced by Global Managers:

Some of the substantive issues faced by global managers in a diversified multinational
corporation are as below:

a. Integrating large international acquisitions.

b. Understanding the meaning of performance and accountability in a globally

integrated system of product flows.

c. Building and managing a worldwide logistics capability.

d. Developing country-specific corporate strategies that take into account the political
as well as economic imperatives.

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 e. Forming and benefiting from collaborative arrangement around the world.

f. Balancing the pressures for global integration and local demand.

Abilities of global managers:

Reviewing a wide range of literature review, we found some abilities of a global manager.

a. Ability to develop and use global strategic skills

b. Ability to manage change and transition.
c. Ability to manage cultural diversity.
d. Ability to design and function in flexible organization structures.
e. Ability to work with others and in teams.
f. Ability to communicate.
g. Ability to learn and transfer knowledge in an organization.

This review might lead the reader to conclude that an effective global manager is
superhuman. But keeping in mind the necessity of teamwork and the potential support to
the manager through effective organizational design, systems, and processes, the prospect
of developing global skills might be seen as an exciting challenge rather than an impossible
task. To develop skills to the level necessary will be a lifelong process because the
demands will likely expand along with the global economy. Each of us needs to continue to
improve in the aforementioned areas as we move through the beginning of the new century.

Roles of Global Managers:

A global manager is characterized by the nature of the work he or she does, typically
within an organization with global operations. He or she has the capability to manage amid
the complexity of business that is conducted across divergent cultures and time zones. A
global manager can also be an expatriate, living and working abroad, but this is not always
the case.

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Global managers can more specifically be seen in terms of three prototypical roles in a
global organization. These are:

1. The global business or product-division managers who are tasked with

global strategic positioning and asset co-ordination across the organization.

2. The country managers who bridge between the local market operations
and global business objectives of the organization.

3. The worldwide functional managers who help leverage knowledge and

innovations across the key functional departments throughout the
organization.

These three archetypes show that the knowledge and experience to carry out global work
can be fostered and expressed through an integrated network of specialized global talent.

In this way, we see that global experience is not tethered exclusively to the event of
expatriation but can be done by managers (whether at home or abroad) through their
globally-focused activities and responsibilities.

Global managers possess a certain perspective among the workforce, which uniquely
focuses them to operate in a globalised environment of diverse markets and cultures. They
need to manage information and resources from all parts of the world at once, not only
individual countries or regions, and integrate this for the development and diffusion of
innovation on a global scale. Today's global managers may be developed within traditional
corporate career paths. However, we are increasingly seeing employees starting out as
global managers as well. This is often the case with firms that are ‘born global’, such as
companies whose local markets are too small and so must operate immediately in a global
context.

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Functions of the Global Manager
Global competition has forced businesses to change how they manage at home and abroad.
The increasing rate of change, technological advances, shorter product life cycles, and
high-speed communications are all factors that contribute to these changes. The new
management approach focuses on establishing a new communication system that features a
high level of employee involvement. Organizational structures must also be flexible
enough to change with changing market conditions. Ongoing staff development programs
and design-control procedures, which are understandable and acceptable, are outcomes
from this new approach. Management values are changing, and managers must now have a
vision and be able to communicate the vision to everyone in the firm.

Although the international manager performs the same basic functions as the domestic
manager, he must adjust to more variables and environments. Therefore, each of the five
basic management functions must change when operating in a foreign market.

a. Planning

b. Organizing

c. Staffing

d. Leading

e. Controlling

I. Planning

The first stage of international planning is to decide how to do business globally: whether
to export, to enter into licensing agreements or joint ventures, or to operate as a
multinational corporation with facilities in a foreign country.

To develop forecasts, goals, and plans for international activities, the manager must
monitor environments very closely. Key factors include political instability, currency

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instability, and competition from governments, pressures from governments, patent and
trademark protection, and intense competition.

International firms should be sure that their plans fit the culture of the host country.
Typically, U.S. firms feel that long-term plans should be three to five years in length; but in
some cultures, this time period is too short. Many countries must plan with the assistance
of governmental agencies. And working through bureaucratic structures, policies, and
procedures is often time-consuming.

II. Organizing

International businesses must be organized so that they can adapt to cultural and
environmental differences. No longer can organizations just put “carbon copies” or clones
of themselves in foreign countries. An international firm must be organized so that it can be
responsive to foreign customers, employees, and suppliers. An entire firm may even be
organized as one giant worldwide company that has several divisions. Above all, the new
organization must establish a very open communication system where problems, ideas, and
grievances can quickly be heard and addressed at all levels of management. Without this,
employees will not get involved, and their insights and ideas are crucial to the success of
the business.

As an organization extends its operations internationally, it needs to adapt its structure.

When the organization increases its international focus, it goes through the following three
phases of structural change:

a) Pre-international stage. Companies with a product or service that incorporates the

latest technology, is unique, or is superior may consider themselves ready for the
international arena. The first strategy used to introduce a product to a foreign
market is to find a way to export the product. At this phase, the firm adds an export
manager as part of the marketing department and finds foreign partners.

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 b) International division stage. Pressure may mount through the enforcement of host
country laws, trade restrictions, and competition, placing a company at a cost
disadvantage. When a company decides to defend and expand its foreign market
position by establishing marketing or production operations in one or more host
countries, it establishes a separate international division. In turn, foreign operations
begin, and a vice president, reporting directly to the president or CEO, oversees the
operations.

c) Global structure stage. A company is ready to move away from an international

division phase when it meets the following criteria:

a. The international market is as important to the company as the domestic

market.

b. Senior officials in the company possess both foreign and domestic

experience.

c. International sales represent 25 to 35 percent of total sales.

d. The technology used in the domestic division has far outstripped that of the
international division.

As foreign operations become more important to the bottom line, decision making becomes
more centralized at corporate headquarters. A functional product group, geographic
approach, or a combination of these approaches should be adopted. The firm unifies
international activities with worldwide decisions at world headquarters.

III. Staffing

Because obtaining a good staff is so critical to the success of any business, the hiring and
development of employees must be done very carefully. Management must be familiar

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with the country's national labor laws. Next, it must decide how many managers and
personnel to hire from the local labor force and whether to transfer home-based personnel.

For example, U.S. firms are better off hiring local talent and using only a few key
expatriates in most cases, because the costs of assigning U.S.–based employees to positions
overseas can be quite expensive. Simply, expatriates (people who live and work in another
country) are expensive propositions even when things go well. Adding up all the extras—
higher pay, airfare for family members, moving expenses, housing allowances, education
benefits for the kids, company car, taxes, and home leave—means that the first year abroad
often costs the multinational company many times the expatriate's base salary. The total bill
for an average overseas stay of four years can easily top $1 million per expatriate. In any
case, managers need to closely examine how to select and prepare expatriates.

IV. Directing

Cultural differences make the directing function more difficult for the international
manager. Employee attitudes toward work and problem solving differ by country.
Language barriers also create communication difficulties. To minimize problems arising
from cultural differences, organizations are training managers in cross-cultural
management. Cross-cultural management trains managers to interact with several cultures
and to value diversity.

In addition, the style of leadership that is acceptable to employees varies from nation to
nation. In countries like France and Germany, informal relations with employees are
discouraged. In Sweden and Japan, however, informal relations with employees are
strongly encouraged, and a very participative leadership style is used. Incentive systems
also vary tremendously. The type of incentives used in the U.S. may not work in Europe or
Japan, where stable employment and benefits are more important than bonuses.

V. Controlling

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Geographic dispersion and distance, language barriers, and legal restrictions complicate the
controlling function. Meetings, reporting, and inspections are typically part of the
international control system.

Controlling poses special challenges if a company engages in multinational business

because of the far-flung scope of operations and the differing influences of diverse
environments. Controlling operations is nonetheless a crucial function for multinational
managers. In many countries, bonuses, pensions, holidays, and vacation days are legally
mandated and considered by many employees as rights. Particularly powerful unions exist
in many parts of the world, and their demands restrict managers' freedom to operate.

Marketing functions of Global Manager:

Marketing is involved in all activities of economic nature. From the economics point of
view it creates time, place, and possession utilities. Integrated Marketing
Communications (IMC) is the latest marketing model that a global manager follows to
compete with the global competition. IMC is the coordination and integration of all
marketing communication tools, avenues, functions and sources within a company into a
seamless program that maximizes the impact on consumers and other end users at a
minimal cost.

This management concept is designed to make all aspects of marketing communication

such as advertising, sales promotion, public relations, and direct marketing work together
as a unified force, rather than permitting each to work in isolation.

The IMC function/tools that a global manager uses are of four types.

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a) The Foundation - corporate image and brand management; buyer behavior; promotions
opportunity analysis.

b) Advertising Tools- advertising management, advertising design: theoretical frameworks

and types of appeals; advertising design: message strategies and executional frameworks;
advertising media selection. Advertising also reinforces brand and firm image.

c) Promotional Tools - trade promotions; consumer promotions; personal selling, database

marketing, and customer relations management; public relations and sponsorship
programs.

d) Integration Tools - Internet Marketing; IMC for small business and entrepreneurial
ventures; evaluating and integrated marketing program.

Technological functions of Global Managers:

Before a technology can be successfully adopted, there must be information available
about its functions and how it is used. There must be means of communicating this
information to potential users. It is not sufficient to provide new technology and expect the
target operators to learn its application automatically. So the technological functions of a
Global Manager will be:

1. Providing full information on the company’s goals in introducing the technology.

2. Full instructions on how to operate it.
3. Facilitate people to ask questions.
4. Answer their questions.
5. Explain the economic and other benefits they gain from using it.

General Competencies of Global Managers:

A literature review has been undertaken to identify the global mindset, and the skills and
competencies essential to the global managers. From the numerous frameworks, this paper
proposes a new framework design consisting of the below:

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(1) Knowledge competencies;
(2) Interpersonal competencies; and
(3) Personal competencies.

1. Knowledge competencies of Global Managers:

Knowledge competencies are concerned with factual information pertaining to a clear and
deep understanding of technology, business, and industry required to complete tasks
successfully. They are the basic building blocks for global managers’ journey towards a
global perspective (Jokinen, 2005). The competencies in this section include technology
savvy, international knowledge, cultural and cross-cultural awareness, business and
industry savvy, global risk management, and best practice standards.

General
Competencies
Of Global
Managers

Knowledge Interpersonal Personal

Competencies Competencies Competencies

Technology savvy Acculturation Self awareness

International Diversity
Inquisitiveness
knowledge management

Cross-cultural Leading &

Honesty & integrity
awareness motivating

Business & Cultural

Open mindedness
Industry savvy Networking skill

Global risk Creation of a

Adaptable
management Clear vision

Best practice Capacity for

Optimism
standard Managing conflict 22

Cultural knowledge Empathy

a) Technology savvy
The rapid onslaught of globalization has been largely due to advances in technology
interconnecting companies across the world. Goldsmith, Walt, and Doucet (1999) see
technology savvy as a key competency for global managers as it significantly impacts the
organization’s core business. Technology is not only vital for communication, and effective
information management, but also greatly impacts the organization’s production processes.
In the fast pace world of technology certain products, processes and services can be
outdated very quickly. It is therefore necessary for global managers to not only be able to
use technology, information systems and telecommunications effectively but also
understand its impact by assessing and analyzing the affect it has on the global operations
of the firm (Kedia and Mukherji 1999). Technology solutions that may be pertinent to the
global managers include Business Intelligence tools such as the SQL Server suite (Analysis
Services, Reporting Services) and Oracle; and collaborative tools such as Microsoft Office

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SharePoint Server, Skype, Microsoft Groove 2007, Google Apps, and instant messaging
tools such as MSN Messenger (P. Culmsee, personal communication. May 3, 2008).
Solutions such as those listed above may not be required by all managers as it depends on
the type of industry they are in, and the organization itself.

b) International knowledge
Competency in this field means an understanding of the different socio-political and
economic policies governing each country. A global organization operates world-wide
abiding by the rules and regulations that govern that particular nation. Therefore it is
essential to clearly understand the structure of these systems, their decision-making
processes, and how they impact business operations and those around them (Whitfield
2003). Subject matter such as international finance, international law, and comparative
labour relations should be familiar to the global manager (Caligiuri 2006). Knowledge in
this field not only assists in penetrating foreign markets distribution networks (Tan,
Erramilli, and Liang 2001) and the smooth running of the business but it can be a
competitive advantage.

Take Procter & Gamble for example. In the early 1980’s, in their fight for higher margins
from the pharmaceutical industry, Indian pharmacists nationwide targeted the company by
boycotting Vicks products. Gurcharan Das, CEO of Procter & Gamble’s Indian subsidiary
realized that the Vicks products contained all natural herbal ingredients, found in the age-
old Sanskrit texts. Products compliant under this Ayurvedic system of medicine in India
could be sold in food shops, general stores, and street kiosks. Das proved this compliance
to the Delhi government and the local FDA and had the registration changed from Western
medicine to Indian medicine. With the new registration, the company was able to expand
its distribution channel beyond pharmacies and build a new plant for Vicks, enjoying the
tax-advantages and lower labour costs (Das 1994, 197-210).

c) Cultural and cross-cultural awareness

This pertains to the understanding and appreciation of the country and its society’s norms,
beliefs, rites, rituals, symbols, behaviors, motivations and stories. Effective global

24
managers value and manage cultural diversity and consider this diversity an asset not a
hindrance (Caligiuri 2006). Nardon and Steers (2008) state that many inter-culture
assignments occur on short notice thereby giving managers limited time to learn about that
particular culture, and intimate understanding of the cultural diversity may be difficult due
to geography. In these circumstances cultural and cross-cultural awareness is learnt “on the
fly”. Despite the obstacles, understanding this diversity will be of great benefit to the
global managers.

Procter & Gamble will be mentioned again to illustrate this issue in relation to business.
Das (1994, 197-210) noticed that the company had trouble selling Vicks Vaporub to
Northern India, whereas sales in the South were high. He decided to capitalize on the high
market sales in the South instead of attempting to correct the market in the North. The
company profited. Das later discovered that the reason for the poor sales in the North was
due to the fact that people in this region did not like to rub things on their body. Had Das
ignored the market trend and decided to expend resources attempting to impose the product
on the North, poor sales figures would likely have continued as products would remain on
the shelves.

d) Business and Industry Savvy

Coupled with technology savvy, business acumen, a thorough understanding of the
business and its industry is critical for achieving organizational goals and objectives
(Parker 2005). Global managers must intimately comprehend not only the company’s
business strategies, products, and resources, but also the structure of its global operations,
worldwide market opportunities (Aycan 2001, 119-135; Osland 2001, 137-156) and
competitive conditions (Osland 2001, 137-156). Bartlett and Ghoshal’s (1994, 77-91) role
of the scanner will be required here to achieve this savvy. They will need to filter, analyze
and interpret the scanned knowledge. This knowledge can then be communicated across
the organization. This breadth of understanding will assist the global manager to recognize
as well as anticipate change (Parker 2005), stay on strategy, and find and overcome threats
(Kedia and Mukherji 1999).

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 e) Global risk management
Parker (2005, 468) quotes Mihaly Simai’s definition of international risk as “important,
potential disturbing and destabilizing factors or acts originating with, or generated by,
various actors on different structural levels, and having spillover consequences for other
members of the international community”. Some of these risks include political, currency-
exchange, and corruption. Globalization provides many potential techniques to allow
global managers to improve the organization’s bottom line, from the productivity gains of
operating in lower cost countries to the ability to leverage global position in pricing
negotiation with suppliers. Due to the nature of their role, the global manager would need
to have a higher risk tolerance level to deal with uncertainty in the global market. However,
there have been cases where appropriate safeguards have not been taken to assess and
minimize risk. An excellent example of the differences in risk management maturity
occurred in early 2000 (SCM n.d).

In Albuquerque, New Mexico, a thunderstorm set fire to a factory at a plant producing

mobile phone semiconductors resulted in contamination that destroyed millions of mobile
phones worth of chips. This plant was owned by Phillips NV, a major supplier to Nokia. In
Finland, Nokia’s computer system indicated delay in the arrival of shipments of phone
chips from Phillips. Three days after the fire, Phillips notified Nokia about the situation and
advised them of the one week delay in the shipment. The fire impacted the production of
some 4 million handsets. Nokia required the chips for their new generation of phones. This
delay would mean that more than 5% of the company’s annual production might be
disrupted during a time of booming phone sales. Strategies were formulated and acted
upon. Phillips and Nokia agreed to join forces temporarily to overcome the crisis. Nokia
was able to launch their new phones to very satisfied customers on schedule. Ericcson, on
the other hand, received the call from Phillips but did not act. They assumed that the one
week delay would not affect their business. When they realized the full extent of the
problem (three weeks after the fire) it was too late. They could not find suppliers with the
available chips for their new generation phones. At the end of 2000, Ericsson reported a
loss of US$1.68 billion in the company’s mobile phone division.

26
 f) Best Practice standards
In a highly competitive global market it is advantageous for the global managers, and thus
the organization, to understand and comply with/implement best practice standards as those
involved in business have higher expectations and standards. These standards exist to
provide independently verifiable assurance to a variety of stakeholders, assuring these
stakeholders that the organization is performing in accordance with the requirements of
these standards. Examples of these are legislative frameworks: SOX and HIPAA
(Healthcare) in the USA, and BASEL II (financial risk management) in the European
Union; Compliance frameworks such as GAAP (Accounting), COBiT, COSO (control
frameworks), ISO9001 (Quality); Frameworks to improve process/visibility such as Six
Sigma, LEAN, and Kaizen; Frameworks to improve specific disciplines such as PMBOK
and, Prince II (Project Management) (P. Culmsee, personal communication. May 4, 2008).

Managers must also incorporate ethics and corporate social responsibility into their
business as part of best practice. This voluntary benchmarking can build trust, demonstrate
that they possess integrity and honesty, and can be a competitive advantage as it will
enhance reputation. Environmental and social ethics and business were once seen as
opposite ends of the business spectrum however, with increasing social awareness and
empowerment, society and NGOs are leading the way to ensure that industries are
respectful of community and the environment. As businesses increasingly come under fire
for their lack of environmental and social ethics, it is safe to conclude that embracing
ethics and CRS is good business practice.

2. Interpersonal competencies:
It is not sufficient for global managers to only gain knowledge but also critical for them to
possess the appropriate skills to transfer this knowledge into action effectively.
Interpersonal competencies are those that relate to the social/relationship interaction or
management of others. Competency in this area will lead to fruitful results when dealing
with others. These competencies, acculturation, diversity management, leading and

27
motivating a diverse workforce, cultural networking skills, creation and conveyance of a
clear vision, and capacity for managing uncertainty and conflict in the global environment,
are described below.

a) Acculturation
“Acculturation is the process whereby the attitudes and/or behaviors of people from one
culture are modified as a result of contact with a different culture” (Maxwell n.d.).
Awareness of cross-cultural differences is vital but not enough. The challenge for the
global managers, after gaining cross-cultural knowledge, is the willingness and ability to
embrace and integrate multiple perspectives (Aycan 2001, 119-135) and use it to their
advantage. To achieve this they must learn to let go of their own cultural certainty,
unquestioned acceptance of basic assumptions, personal frames of references, unexamined
life, accustomed role or status, social reinforcement knowledge, accustomed habits and
activities, and known routines (Osland 2001, 137-156), accept that differences do matter
(but not inferior), be open and receptive to new ideas, ready to accept another perspective
(Rifkin 2006) and be able to master both non-verbal and verbal communications (Jokinen
2005) pertinent to the culture. Caligiuri (2006) recommends fluency in language to assist in
effective verbal communication.

An example of how acculturation will benefit the global manager can be demonstrated by
the understanding of a brief explanation of the Japanese negotiation style (Adachi n.d.).
Japan still maintains a hierarchical business structure. Prior to commencing the negotiation,
they ascertain their standing/ranking and that of their organization in respect to others.
Their language is indirect, ambiguous and controlled (agreeable) as harmony and the
concept of ‘face-saving’ is important to them. The subject matter is talked around rather
than being approached directly. Even if they have strong views or oppose someone else’s
view, they will avoid offence preferring to skate around the subject so as to maintain the
relationship. They value long-term relationship over short-term monetary gain. If an
agreement cannot be reached, they are more likely to change the subject or ignore it all
together. Information gathering about the other is important and negotiations will not be

28
commenced until they obtain what is needed. A broad agreement is first made from the
negotiation, and detailed agreements later.

b) Diversity management
Managers who perceive diversity as important and have the ability to manage this diversity
can leverage these differences for mutual business gains (Whitfield 2003). Managing
diversity pertains to the ability to co-ordinate groups of people from differing backgrounds,
characterized by culture, gender, age, religion, etc., working effectively and productively
together on the same tasks. To manage diversity effectively, the organization’s culture must
value its diversity. For behavior and thinking to change this value of diversity must be
embedded in processes and structures (Parker 2005). With globalization comes culture
diversity. To be successful, it is crucial for global managers to be competent in this skill.

c) Leading and motivating a diverse workforce

Leadership skills are essential to all managers however the ability to lead and motivate a
diverse workforce in the organization’s global environment is specific to global managers
due to the nature and composition of the workforce. Inspire (Kedia and Mukherji 2001).
This can be made more difficult task when the “team’ members are located in different
parts of the globe. A critical aspect of an effective global leader is to facilitate integration,
lead in a manner consistent with the follower’s cultural expectations while simultaneously
helping the members develop a set of norms that allow for differences in social-interaction
preferences (Stahl 2001, 197-210). To be effect they must inspire others, go against
outdated or ineffective practices, build trust amongst the team, delegate, be a mentor, and
demonstrate sensitivity and empathy to those they lead (Tubbs and Shultz 2006).

d) Cultural networking skills

These are ‘relationship management’ skills (Jokinen 2005) created and maintained to
further the organization’s interest within the global environment. Global managers will
need to understand the culture for effective networking. Goldsmith, Walt and Doucet
(2000) report that the ability to negotiate alliances and manage this complex network of
relationships is vital to the success of a global venture. Building a positive long-term

29
relationship with others is critical. Khan (2007) believes that the adage “It doesn’t matter
what you know, it’s who you know that matters” holds true in most countries. To further
themselves and their organization Khan suggests that it is necessary for global managers to
develop good relations with the “influential and effective people” around the world who
will impact the business positively.

e) Creation and conveyance of a clear vision

Part of the global manager’s role is the accomplishment of organizational objectives
through the work of others those who are able to set and pursue the organization’s goals
will assist in the success for the organization. Effective managers have the ability to, not
only set visions, but they also have the ability to articulate these visions effectively for all
to understand. Effective communication of the vision in a global environment transcends
all organizational, geographical, and cultural barriers and boundaries (Parker 2005). The
ability to manage the change process within the organization is of utmost importance to
succeed in the envisioning of goals. The visions set should be clear, measureable,
motivating and pertinent to the organizational goals. There must be accountability and
ownership throughout the process, thus employee empowerment is critical. Leadership
skills such as building trust, inspiring and motivating others in the achievement of the
goals, evaluating others and delegation of responsibly accordingly also required for the
achievement of the vision (Tubbs and Shultz 2006).

f) Capacity for managing uncertainty and conflict in the global environment

This is an ability to function effectively in unfamiliar constantly changing, complex and
paradoxical environment (Kedia and Mukherji 1999) while maintaining patience and
composure (Stahl 2001, 197-210) demonstrating a high tolerance for ambiguity. Global
managers in this environment feel comfortable/at eased with rapid change and corporate
forecasting, and have a greater capacity for overcoming adversity (Tubbs and Shultz 2006).
This indicates an appreciation of challenge and an ability to deal with situations and crisis
directly rather than displaying an avoidance attitude. In order to achieve this, others skills
such as sound verbal and non-verbal communication, for examples active listening,

30
negotiation, interviewing, and non-verbal cues), ability to scan the world for information,
and an understanding of diversity and its impact are a necessity.

3. Personal competencies:
The fundamental personal characteristics or traits of a person will not only affect the
attainment of knowledge but also how and if the knowledge will be executed. Knowledge
and skills alone do not make a global manager. It is the personal traits of the person that
will drive the acquisition of the knowledge and affect how the skills are performed.

a) Self-awareness/Emotional Intelligence
To be self-aware, the global managers would have an astute insight of how they are
perceived by others, clear insight of themselves, and a clear insight of their own roles with
respect to others in the group (Maznevski and Zander 2001). Self-awareness will assist
towards the development of emotional intelligence, which is “the subset of social
intelligence that involves the ability to monitor one’s own and others’ feelings and
emotions, to discriminate among them and to use this information to guide one’s thinking
and actions” (Salovey and Mayer, 1990). It is this deep understanding and intuitiveness of
self and others that will assist the manager to transform and develop.

b) Inquisitiveness
The inquisitive mind is one that has an insatiable demand for knowledge. It will assist
global managers in seeking information and strive for continuous learning (Parker 2005).
The inquisitive mind will question and probe until the best course of actions and results are
obtained. Global managers with inquisitive minds are adventurous and will always have
up-to-date knowledge and skills to achieve their goals.

c) Honesty and integrity

Global managers who possess and exhibit honesty and integrity demonstrate respect for
their peers, value and accept others for who they are. These managers are keen to build and
maintain trust. They place the organization and others’ interest above their own. They are

31
just and fair and will do what is best for others. Global managers with honesty and integrity
will ensure that best practice standards are implemented and maintained. Employees
working for them will be empowered (Parker 2005). This trait will assist the global
managers to lead and motivate their team. The case below, taken from Parker’s (2005, 387)
book, demonstrates the ultimate act of integrity through leading by example and trust
building, exemplified by the actions of Norbert Reinhart.

d) Open-mindedness
Global managers with open minds are less likely to be judgmental and view diversity as
inferior. They will be more receptive to new experiences and ideas, and be able to see and
accept change more readily (Caligiuri 2006).

e) Adaptable/flexible
This is the capacity to adjust or vary one’s thoughts and thus behavior according to the
immediate requirements of the condition or situation. An adaptable or flexible mind will
assess and analyze the foreign culture, compromise, and then find innovative and creative
ways to arrive at a solution (Stahl 2001, 197-210).

f) Optimism
Optimism is a mindset that looks on the positive side of a given situation. Optimistic
managers are forward thinkers, will most likely persevere, learn from their mistakes, and
encourage and motivate others to succeed. They themselves will be more motivated and
pro-active. This positive outlook will also assist the global managers to cope in unfamiliar
and uncertain situations and people (Jokinen 2005).

g) Empathy
Empathy is a genuine understanding, concern and respect for another’s thoughts, feelings,
needs, motives and assumptions and one’s capacity to respond to those factors
appropriately. Empathetic managers will consider someone else’s situation, “show
appropriate discretion”, and “argues from position of the host country” (Stahl 2001, 197-
210). This trait will assist the global managers in their relationship with people worldwide
as their listening skills will improve, and are able to appreciate differing viewpoints. This

32
understanding of others will lead to cross-cultural sensitivity and expertise in global human
resource management (Jokinen 2005).

Global Mindset for a Global Manager:

To complete the manager’s global perspective, global managers must possess a global
mindset. It is a way of being, described by Rhinesmith (1992) as “a predisposition to see
the world in a particular way that sets boundaries and provides explanations for why things
are the way they are, while at the same time establishing guidance for ways in which we
should behave” acting as a filter.

Rhinesmith sees those with global mindsets to always drive for the bigger, broader picture;
accept the balance of contradictions; look towards organizational processes rather than
structure when dealing with uncertainty; value and leverage diversity of teamwork and
play to their advantage; view change as an opportunity rather than a hindrance; and open to
surprises, embracing challenge and uncertainty, and always question the status quo. They
are proactive and their thoughts and actions are not limited to boundaries. They have the
ability to effectively manage competition, complexity, adaptability, diverse teams,
uncertainty, and learning. Rhinesmith also characterizes them as having astute knowledge
in technology, business and the industry; highly developed conceptual capacity; flexibility
to deal with the constant changing global and local market demands; sensitivity to cultural
diversity; judgment in making risky decisions with little information; and the capacity for
reflection in seeking continuous improvement.

Leadership Skills for global managers:

In our work with a wide range of international companies operating across many different
markets and industries, it has become clear that the most successful business leaders
consistently demonstrate a specific set of competencies. These Leadership skills set this
group apart from other managers. Successful global managers, particularly those leading
the internationalization of domestic companies, demonstrate these same Leadership

33
competencies but in a very distinctive way. In our view these competencies fall into four
distinct areas.

These are as below:

a) Business leadership
Business leadership in a global company has very specific challenges. In new markets,
particularly new international markets, there is an overriding imperative to form strategic
alliances and partnerships. Whether due to the need to gain distribution in a foreign
environment, to gain lower cost production through scale, or to navigate the regulatory
environment of foreign countries; the ability to build alliances and business partnerships is
a key to successful business leadership in new markets.

"It's not sufficient to mirror head office structures..."

A second imperative relates to company structure and organizational dynamics. It is not

sufficient, and indeed it might even be counter-productive, to simply mirror the head office
structure in new or emerging markets. The most successful businesses in new markets are
flexible and responsive. The lack of critical mass and the geographic dispersion of
operations require a high degree of ambiguity in terms of roles and reporting lines. In this
situation, it is critical that there are effective links between the new, evolving business and
head office. Inevitably, this requires constant communication and a lot of travel.

Finally, business leadership in the context of an internationalizing company creates special

demands in terms of communicating the corporation's shared values and strategy. The
successful business leader has an almost evangelical role. He or she must infuse the local
management team with the corporation's vision and culture otherwise the company will
never be institutionalized in the local market and, long term, will probably fail.2

b) Functional leadership
Functional leadership is typically defined in terms of the specific functional skills an
individual brings to a business situation. In the context of a globalizing company specific

34
functional skills are often critical and relate to the challenges facing the business, such as
in the areas of marketing, manufacturing or logistics.

"Deep functional skills give the global manager credibility..."

But over and above the specific functional requirements of a particular situation, deep
skills in a functional area of relevance are critical because they give the global manager
credibility. The executive brings something to the party. He or she has neither simply been
'parked' by the corporation nor are they passing through as part of a career development
plan. This is most relevant in situations where there has been high turnover of expatriate
managers who, often due to the short tenure of their appointment, have not had a positive
or lasting impact on local operations.

One way that functional leadership is demonstrated very tangibly in the context of global
companies is in the individual's ability to leverage the corporate network. Is he, or she,
plugged in? Can the leader get his or hands on the necessary information from head office?
Can the leader get decisions made quickly and efficiently?

Successful functional leadership also requires the individual to maintain a functional edge.
It is imperative that the leader does not become isolated from best practice. This is
especially true of executives leading operations in isolated situations such as parts of
China. The successful global executive must continue to invest in the development of his
or her functional area of competence, even when based in remote locations.

"The dominant culture can be alien to the business leader..."

c) Team leadership
Team leadership is the first of the two 'soft' competencies that we believe sets successful
global business leaders apart from other managers. Global markets are typically

35
characterized by rapid change and a high degree of uncertainty. Typically, the dominant
culture of the working environment is alien to that of the business leader and the
organization’s operations can cover a large and diverse geography.

Keeping the team focused and motivated in such an environment creates particular team
leadership challenges for the manager of an internationalizing business. Mentoring,
coaching, motivating, and even day-to-day communication can be difficult in an
environment where cultural norms, symbols and values are all fundamentally different to
those of the leader.

Leading change is particularly challenging in new and emerging markets. The political,
regulatory and business landscape can change quickly and without warning, as has been
the case in South East Asia in recent years. In China, for example the Government will
often change the regulatory environment, seemingly on a whim, creating dramatically new
competitive dynamics overnight. The ability to communicate a consistent vision, and
inspire the troops to action in such an environment, requires a special kind of leadership.3

d) Personal leadership
Personal leadership is the other 'soft' competency that defines successful managers,
particularly in the context of internationalizing companies. This, perhaps more than the
other competencies, sets successful global managers apart from their domestic
counterparts. We often forget how much we rely on our home environment for support and
structure. Our family life, sports clubs or religious affiliations, all provide rhythm and
context for our business activities.

"We forget how we rely on our home base for support..."

Business leaders in the international context often lack these supports and accordingly
require a level of personal leadership well beyond what is typically needed in a domestic
environment. For the executive who is constantly travelling, living in hotels, regularly
crossing time zones and doing business over meals and late evenings, it is challenging to
maintain energy and balance. It takes discipline, focus and maturity.

36
Another aspect of personal leadership that is specific to working in foreign environments
relates to cultural identity. If an executive is to be successful working in another culture he
or she must demonstrate a deep respect for, and sensitivity to, cultural differences. This
does not mean however those successful managers 'go native'. To the contrary, if the
individual is to be truly respected by the local team, he or she must also remain grounded
in his or her own culture and national identity. Finding this balance is a defining
characteristic of the most successful global managers.

A further aspect of personal leadership of successful global managers is the ability to

continue to manage their own personal growth and career development. This is an
imperative, particularly for executives working for extended periods at locations a long
way from head office. Keeping networks alive and fresh, staying on the corporate radar
screen, and maintaining one's edge when working at the coalface of international business
is extremely difficult.

Developing Global Managers:

American companies went through a period of reducing the number of expatriates they sent
overseas for many reasons. One major reason was the expense associated with relocating
them and their families. Their salaries were usually higher then those of local managers
and they usually received benefits to make an overseas move attractive. Many of these
benefits were not usually provided to local managers or employees. Benefits often included
items like housing or housing allowance, moving expenses, tax equalization, home leave,
overseas premiums, cost of living allowance, and schooling for children. The incremental
costs to the MNE of using of expatriates can be shockingly high particularly in some
locations. In addition to lowering costs having fewer expatriates has resulted in reduced
conflict between employees and groups in the local environment. As well, it has increased
the development of host country managerial and technical capabilities.

Although this trend could be seen as a positive step in the globalization process of
American companies, there is a question about whether the real reason for the reduction
was Americans’ inability to function abroad successfully. Estimates of expatriate failure

37
rate run between 20 percent and 50 percent, and the average cost per failure to the parent
company ranges from $55,000 to $150,000. There are studies claiming the failure rate is
between 30 and 70 percent. The accurate identification of the actual rate of failure is less
important than how high the range is. The fact that this range represents a large number of
managers who cannot function successfully in other culture is disturbing. The reduction in
expatriate personnel also has ramifications for strategic management and control, such as
less identification with, and knowledge about, the globe operations and organization, and
less control by headquarters over local subsidiaries. Thus:

…there is increasing value to expatriate assignment as firms become global

competitors... A means must be found to provide this experience to as many managers as
possible. That would probably involve shorter-term expatriate assignments whose purpose
is avowedly developmental…for both the individual and the organization.

Managing International Assignments:

There are strategic implications to use of expatriates personnel. MNCs must think about
expatriation as a strategic tool that is used to develop managers with a global orientation,
but also that is used to manage key organizational and country relationship. Though
organizational and management development are important, the emphasis should be on
three things. Those are as below:

a) Selection: The important consideration given in selecting a global manager is on

his ability to adapt to, and function in another culture. It does no good to send the
most technically qualified engineer or finance manager to a foreign location if he
cannot function there and has to be brought home prematurely. As noted earlier, the
cost of bad selection decisions is high to the corporation as well as to the individual
and to his or her family.

b) Training: The training that a person undergoes before expatriation should be a

function of the degree of cultural exposure to which he or she subjected. Two
dimensions of cultural exposure are the degree of integration and the duration of

38
 stay. The integration dimension represents the intensity of the exposure. A person
could be sent for a short term, technical, trouble-shooting matter and experience
little significant contact with the local culture. On the other hand, a person could be
sent for brief negotiation where the cultural interaction could be very intense. So,
the training is different and it depends of the dimension of the visit. Effective
preparation would also stress the realities and difficulties of working in another
culture and the importance of establishing good working relationships with the
locals.

c) Repatriation: Selecting the right people, train them up, and sending them to
foreign posting is not the end of the exercise. Getting these people back and
integrated into the company so that the company can continue to benefit from their
experience and expertise has been shown to be a problem. Research suggests that
the average repatriation failure rate. Those people who return from an overseas
assignment and then leave their companies within on year is 25%. To hold them in
the company, they need to adopt a better repatriation strategy.

Emotional Intelligence of Global Managers:

Team leadership and personal leadership are linked through an overarching competence
Professor Daniel Goleman, the Rutgers academic, calls Emotional Intelligence. This is an
old concept that was recently revisited and popularized by Goleman with the publication of
his international best seller by the same title. Goleman argues persuasively that emotional
intelligence is a much better predictor of success in all the arenas of life than IQ by itself.

Emotional intelligence, according to Goleman, is made up of five elements. Three of these

involve personal elements: self-awareness, self-regulation and motivation. Two of the
elements are social: empathy and social skills. From the experience of Egon Zehnder
International, these are the same personality characteristics that are also critical for
effective team leadership and personal leadership. In other words, individuals who are
emotionally intelligent are much more likely to exhibit this critical business leadership
competencies.

39
Problems of Global Managers:

As the global managers work in a dynamic environment, they are very vulnerable to meet
new challenges and hindrance. Estimates of expatriate failure rate run between 20 percent
and 50 percent, and the average cost per failure to the parent company ranges from $55,000
to $150,000. Studies claiming the failure rate are between 30 and 70 percent, which results
because of the problems faced by the global managers. Some of the major problems are
sorted out in below:

1. Lack of cultural knowledge: different people of different areas are used to their own
cultural practices. It is hard for a global manager to have knowledge on the different
cultures around the world.

2. Lack of communication skill: It is hard to know the different communication norms of

different people around the world.

3. Lack of understanding: The global managers always find themselves in continuous new
challenges. Some of which are out of their general understanding.

Overcoming the Problems of Global Managers:

It is so difficult to develop effective global managers in this age of globalization. Each

company has its own specific needs and challenges, and every country presents a unique
and rapidly changing landscape in which work must be accomplished. But even so, there
are steps companies and managers can take to better prepare for the challenges of
managing globally. Our focus here is threefold:

1. Clearer Understanding: To develop a clearer understanding of the challenges of

managing people across borders.

40
 2. Awareness and Appreciation: To instill in new global managers awareness and
appreciation for the vast differences among the cultures in which they do business.

3. Tools and Support: To give global managers the tools and support they need to
succeed by the companies.

Conclusion:
Competency in business leadership, functional leadership, team leadership and personal
leadership are all key elements of a successful business leader's skill set. The requirement
for well-developed competencies in team leadership and personal leadership, however, is
particularly important in the international context.

Too few organizations really provide their executives with the right framework to assess
their individual abilities or have adequate mechanisms to provide frank and honest
feedback and developmental support. That is why Egon Zehnder International has
developed its Management Appraisal practice. The focus of this practice is the individual
assessment of executives based on a structured interview and exhaustive 360 degree
references. The output, which involves detailed personal feedback, is focused on
identifying developmental opportunities based on each executive's personal career
aspirations and the needs of the organization.5

Executives who aspire to business leadership positions, particularly in globalizing

companies, must take a hard headed look at their level of competence in each of these areas
and proactively address their individual developmental opportunities. This might involve
seeking the support of a mentor or coach, seeking job change or completing an executive

41
program. There are many developmental options but, self-awareness, through structured
and regular feedback, and proactive career planning, are the first steps.

Questions from the report on ‘Global Managers’

Q-1. a) Define global manager.

b) Discuss about the Nomenclature of Global Managers.

Q-2 a) what are the importance of global managers?

b) Describe the critical competencies of global managers.

Q-3 a) Describe the Issues faced by Global Managers?.

b) What are the Abilities of global managers?

Q-4 a) Describe the roles of a global manager?

b) Describe the functions of a global manager.

Q-5 a) What are the Marketing functions of Global Manager?

b) What do you understand by the term IMC?

Q-6 a) what are the technological functions of global managers?

b) What is Global Mindset for a Global Manager?

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Q-7 a) what are the Leadership Skills for global managers?

b) How international assignments are managed?

c) How to develop a global manager?

Q-8 a) what are the different problems of global managers?

b) How the different problems of global managers can be solved?

Q-9 a) briefly discuss about the possibilities of global managers in Bangladesh.

b) what is ‘Emotional Intelligence’ of Global Managers?

References & Bibliography:

Harvard Business Review, March – April, 1994.

2
The Focus Online interview with Cor Boonstra of Royal Philips Electronics, "If I had to
do it again I would be more aggressive"

3
The Focus Online article "The power of diversity" by Fritz Frohlich of Akzo Nobel.

4
The Focus Online article; Emotional intelligence in mergers and acquisitions by Daniel
Goleman.

5
The Focus Online article; The value of impartial views by Dr Hansjorg Franzius of
Siemens AG.

6
http://wiki.answers.com/Q/What_is_the_role_of_global

7
Aycan, Z. 2001. Expatriation: A critical step toward developing global leaders.
InDeveloping Global Business Leaders: Policies, Processes, and Innovations, eds M.
Mendenhall, T.M.Kuhlmann and G.K. Stahl, 119-135.London: Greenwood Publishing
Group.

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8
Barnevik, P. 2001. Preface. In Harvard Business Review Global Strategies: Insights from
the world’s leading thinkers, eds P. Barnevik and R.M. Kanter. Boston: Harvard Business
School Publishing.

9
Bartlett, C., and S. Ghoshal. 1994. What is a global manager? In Harvard Business
Review Global Strategies: Insights from the world’s leading thinkers, eds P. Barnevik and
R.M. Kanter, 77-91. Boston: Harvard Business School Publishing.

10
Khan, A. 2007. Global management skills.

MCQ Test:

1. _____ firms favor less-risky and higher control modes such as exporting and sales
subsidiaries
a) Polycentric
b) Regiocentric
c) Geocentric
d) Ethnocentric

2. Geocentric firms have the ____ level of performance

a) Lowest
b) Highest
c) Mid
d) None of the above

3. There are ____ distinct attitude clusters that are useful in thinking about, and
charactering, corporate worldviews or mind-sets
a) 3
b) 4
c) 5
d) 6

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4. The increase in specialization of people and differentiation in organizations was
driven by-
a) Technological improvement
b) Fragmentation of markets
c) Explosions in product variations
d) All of the above

5. Participation in global terms should occupy

a) Early in the career
b) Mid level of career
c) Late in the career
d) At any level of career

6. Studies claim that the failure rate of expatriates is

a) Between 20% to 40%
b) Between 30% to 50%
c) Between 30% to 60%
d) Between 30% to 70%

7. What would suffice for short stays and low integration?

a) Language training
b) Survival level language training
c) Case studies
d) Stress reduction training

8. The international assignment may be an important vehicle for –

a) Developing global manager
b) Achieving strategic management control
c) Co-ordinating and integrating the global organization
d) All of the above

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9. (strategist + architect + coordinator) stand for –
a) Functional manager
b) Business manager
c) Country manager
d) Corporate manager

10. How many strategies capabilities transnational companies can build?

a) 3
b) 4
c) 5
d) 6

11. “there is no such thing as a universal global manager” was provided by—
a) David Whitwam
b) Christopher A. Barlett
c) Cynthia cahrchwell
d) Kedia and Mukherjee

12. Which one is a critical competency of a global manager?

a) Strategic awareness
b) Adoptability in new situations
c) Language skills
d) All of the above

13. Which one is an ability of a global manager?

a) Ability to communicate
b) Ability to manage cultural diversity
c) Ability to manage change and transition
d) All of the above

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14. There are ____ groups of competencies of a global manager.
a) 3
b) 4
c) 5
d) 6

15. Which one of the following is not under the knowledge competencies of a global
manager?
a) Technology savvy
b) Global risk management
c) Acculturation
d) Business and industry savvy

16. It’s necessary for global managers to develop good relations with____ who will
impact the business positively.
a) Influential people
b) Influential and effective people
c) Effective people
d) None of the above

17. Leadership skills of global managers falls in ____ distinct areas

a) 3
b) 4
c) 5
d) 6

18. Which one of the statement is true?

a) It’s not sufficient to mirror head office culture
b) Deep functional skills give the global manager credibility
c) The dominant culture can be alien to the business leader
d) All of the above

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 19. While managing international assignments the emphasis shouldn’t be on
a) Selection
b) Training
c) Firing
d) Repatriation

20. Which one of the elements of emotional intelligence doesn’t involve personal
element?
a) Self-awareness
b) Motivation
c) empathy
d) self-regulation

Answers of the above MCQs

1 2 3 4 5 6 7 8 9 10

D B B D A D B D B B

11 12 13 14 15 16 17 18 19 20

B D D A C B B D C C

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