Definition of Manager Role

Manage in a Global Environment

 Chapter Point
Attitudes of managers to international
business
Understanding of managers to the global
environment
Stage companies become global
Managing in a global environment
Global employee selection decisions
 Attitudes of Managers to
International Business

Ethnocentric
(oriented country of origin)
Assume that the culture and work
behavior in the country of origin is
much better than elsewhere
Geocentric
(oriented world)
Does not discriminate the employee's
home country, which sought is the best
human resource for the company
Polycentric
(oriented host country)
Believes that most foreign state
managers know best practices so that
foreign employees are given the
freedom to make decisions
 Understanding of Managers
to the Global Environment
“Regional Trade Alliance”
European Union
(EU)
With an EU agreement consisting of 11 countries
(belgium, france, ireland, italia, luxemburg,
North American Free
Netherland, portugal, spain, germany, austria,
finland) then there are no more obstacles to trade,
Trade Agreement
investment, employment and expedition. The union (NAFTA)
of the same currency is the euro. Free trade agreements by Mexico, Canada and the
united states to eliminate barriers to free trade
(tariffs, import clearance requirements, tariffs for
import duty users) make the economy stronger the
three countries.
Association Of Southeast Asian Nations
(ASEAN)
Trade alliance of 10 countries southeast asia (indonesian, singapore, malaysia, brunei, philippines, vietnam,
cambodia, thailand, laos, myanmar) is an economic and political alliance that will later be able to emulate
NAFTA and EU
 Understanding of Managers
to the Global Environment
“Different Types Of Global Organizations”
Multinational Corporation
(MNC)
International companies operating in various countries, have a holding company in his native country and
branches in other countries, but all management decisions are made from the head office in the country of
origin.

Transnational Corporation
(TNC)
Company that organizes operations in various countries but all the management decisions made to the local
state
 Stage Companies Become
Global
1) Exporting and importing
2) Sending a domestic employee / hire an agent
(foreign brokerage)
3) Licensing (the manufacturer) or franchise
(services)
4) Strategic alliances
5) Joint venture
6) Foreign subsidiary
 Managing in a Global
Environment

Juristical-political Environment
The manager must always be informed about specific regulations in the countries where he is running a
business and be aware of the differences to find out the various obstacles and opportunities

Economic Environment
The manager must know the economic factors in the countries it operates. Includes currency exchange rates,
inflation rates and tax laws.
 Managing in a Global
Environment
“Cultural environment”

Individualism Versus Collectivism

 Individualism = prioritizing personal goals rather than organizational goals
 Collectivism = individuals interdependent with other individuals, defining themselves as part of the
organization and prioritizing organizational goals above personal goals

Power Distance
A measure of how far society accepts the inequality of power in the organization
 High power distance
 Low power distance
 Managing in a Global
Environment
“Cultural environment”

Uncertainty Avoidance
Sejauh mana anggota organisasi berusaha menerima ketidakpastian
 Low uncertainty avoidance = those able to receive to these organizational changes, feel comfortable and
more tolerant
 High uncertainty avoidance = people tend to be more emotional and more careful to tread with
regulations

Quantity of Life Versus Quality of Life

 Quantity = more interested acquisition of money and material goods
 Quality = considering important public relations and welfare
 Global Employee Selection
Decisions
Employee criteria:
1) Ability to adapt
2) Technical proficiency
3) Family ability to adapt
4) Skills of human relations
5) Desire to work abroad
6) Has abroad experience
7) Cultural understanding the host country
8) Qualification of academic
9) Knowledge of language
10) Understanding culture of origin country