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Global Employment & Intercultural Management Presented By: Cherine Soliman MBA Teacher Assistant in Contemporary Management Teacher Assistant in Contemporary.

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Presentation on theme: "Global Employment & Intercultural Management Presented By: Cherine Soliman MBA Teacher Assistant in Contemporary Management Teacher Assistant in Contemporary."— Presentation transcript:

1 Global Employment & Intercultural Management Presented By: Cherine Soliman MBA Teacher Assistant in Contemporary Management Teacher Assistant in Contemporary Management

2 Agenda: Globalization Globalization Definition Definition Globalization forces Globalization forces The Impact The Impact Why is globalization significant to organization? Why is globalization significant to organization? Types of global organization Types of global organization Global Employment Global Employment Types of Global Employees Types of Global Employees Types of Global Assignments Types of Global Assignments Successful global employees Successful global employees Causes of Expatriate assignment failure Causes of Expatriate assignment failure Expatriate adjustment Stages Expatriate adjustment Stages Expatriate compensation components Expatriate compensation components Culture Culture What is culture What is culture Dimension of culture Dimension of culture How does globalization affect people at work How does globalization affect people at work Multicultural Workplace Multicultural Workplace Why Diversity Why Diversity Diversity management Diversity management Workplace diversity Workplace diversity Dimension of diversity Dimension of diversity Strategic Importance Strategic Importance Traditional versus new paradigms Traditional versus new paradigms Current industry practice Current industry practice Recommendation Recommendation Key focus areas – Global Firms Key focus areas – Global Firms Intercultural competencies Training Intercultural competencies Training

3 Globalization Globalization

4 Globalization Definition: T his characteristic of the Cybernetic Revolution qualifies the tendency of any entity/activity/technology to acquire a dimension that grows beyond any "frontier" that would be imposed by such criteria as geography, culture, religion, gender, age, etc. Anything and/or anybody can have a worldwide impact. T his characteristic of the Cybernetic Revolution qualifies the tendency of any entity/activity/technology to acquire a dimension that grows beyond any "frontier" that would be imposed by such criteria as geography, culture, religion, gender, age, etc. Anything and/or anybody can have a worldwide impact.

5 Globalization the Difficult Topic Physical Physical World becomes smaller World becomes smaller Expatriates Expatriates Global Companies Global Companies Business Travelers Business Travelers Virtual Virtual Internet Internet Mobile Communication Mobile Communication

6 Globalization Forces Global Communications Global Population Changes Global Economic Interdependence Regional Alliances NAFTA, EU Globalization Forces

7 Why is globalization significant to organization?  A global economy. Information technology and electronic communications have: Information technology and electronic communications have: Promoted a global economy. Promoted a global economy. Created Internet business opportunities. Created Internet business opportunities. Transnational movement of products, trends, values, and innovations. Transnational movement of products, trends, values, and innovations. Multicultural workforces. Multicultural workforces.

8 Why is globalization significant to organization?  Regional economic alliances. European Union (EU). European Union (EU). North American Free Trade Agreement (NAFTA). North American Free Trade Agreement (NAFTA). Caribbean Community (CARICOM). Caribbean Community (CARICOM). Andean Pact. Andean Pact. Asia-Pacific Economic Co-operation Forum (APEC). Asia-Pacific Economic Co-operation Forum (APEC).

9 Why is globalization significant to organization?  Global quality standards. ISO designation for quality standards. ISO designation for quality standards. ISO framework for quality assurance worldwide. ISO framework for quality assurance worldwide. ISO certification is important for doing business in Europe and developing a reputation as a “world-class” manufacturer. ISO certification is important for doing business in Europe and developing a reputation as a “world-class” manufacturer.

10 Why is globalization significant to organization?  Global managers. A global manager is someone who knows how to conduct business across borders. A global manager is someone who knows how to conduct business across borders. The global manager: The global manager: Is often multilingual. Is often multilingual. Thinks with a world view. Thinks with a world view. Appreciates diverse beliefs, values, behaviors, and practices. Appreciates diverse beliefs, values, behaviors, and practices. Is able to map strategy in light of the above. Is able to map strategy in light of the above.

11 Why is globalization significant to organization? Most organizations must achieve high performance within a complex and competitive global environment. Most organizations must achieve high performance within a complex and competitive global environment. Globalization involves complex economic networks of competition, resource supplies, and product markets transcending national boundaries and circling the globe. Globalization involves complex economic networks of competition, resource supplies, and product markets transcending national boundaries and circling the globe.

12 Types of Global Organization

13 Global Employment

14 Types of Global Employees ExpatriateExpatriate Third-Country National Host-Country National

15 Global Employment : Expatriate  Expatriates. People who live and work abroad for extended periods of time. People who live and work abroad for extended periods of time. Can be very costly for employers. Can be very costly for employers. Progressive employers take supportive measures to maximize potential for expatriate success. Progressive employers take supportive measures to maximize potential for expatriate success. Greatest problems occur when entering and working in a foreign culture and upon return home. Greatest problems occur when entering and working in a foreign culture and upon return home.

16 Types of Global Assignments Successful global employees

17 Successful global employees

18 Causes of Expatriate assignment failure

19 Expatriate adjustment Stages

20 International Compensation Balance Sheet Approach Balance Sheet Approach Equalizes cost differences between the international assignment and the same assignment in the home country.Equalizes cost differences between the international assignment and the same assignment in the home country. Home-country reference point used to maintain a standard of living equivalency. Home-country reference point used to maintain a standard of living equivalency. Home-country compensation and other benefits are protected during the international assignment. Home-country compensation and other benefits are protected during the international assignment. Global Market Approach Global Market Approach International assignments are viewed as continual and core components of compensation and benefits are provided regardless of assignment location.International assignments are viewed as continual and core components of compensation and benefits are provided regardless of assignment location.

21 Expatriate compensation components

22 CULTURE

23 What is culture? Unique pattern of shared assumptions, values and norms that shape socialization activities, language, symbols, rites and ceremonies of a group of people Unique pattern of shared assumptions, values and norms that shape socialization activities, language, symbols, rites and ceremonies of a group of people Like personality, culture affects in predictable ways how people behave when told what to do Like personality, culture affects in predictable ways how people behave when told what to do An organization has own unique culture and subcultures among departments and employees An organization has own unique culture and subcultures among departments and employees

24 Popular dimensions of culture include: Language. Language. Time orientation. Time orientation. Use of space. Use of space. Religion. Religion.

25 Cultural Dimension  Language. Perhaps the most visible aspect of culture. Perhaps the most visible aspect of culture. Whorfian hypothesis — considers language as a major determinant of thinking. Whorfian hypothesis — considers language as a major determinant of thinking. Low-context cultures — the message is conveyed by the words used. Low-context cultures — the message is conveyed by the words used. High-context cultures — use words to convey only a limited part of the message. High-context cultures — use words to convey only a limited part of the message.

26 Cultural Dimension  Time orientation. Polychronic cultures. Polychronic cultures. Circular view of time. Circular view of time. Does not create pressure for immediate action or performance. Does not create pressure for immediate action or performance. Emphasis on the present. Emphasis on the present. Monochronic cultures. Monochronic cultures. Linear view of time. Linear view of time. Creates pressure for action and performance. Creates pressure for action and performance. Long-range goals and planning are important. Long-range goals and planning are important.

27 Cultural Dimension  Use of space. Proxemics. Proxemics. The study of how people use space to communicate. The study of how people use space to communicate. Reveals important cultural differences. Reveals important cultural differences. Concept of personal space varies across cultures. Concept of personal space varies across cultures. Space is arranged differently in different cultures. Space is arranged differently in different cultures.

28 Cultural Dimension  Religion. A major element of culture. A major element of culture. Can be a very visible aspect of culture. Can be a very visible aspect of culture. Often prescribes specific behavioral practices. Often prescribes specific behavioral practices. Influences codes of ethics and moral behavior. Influences codes of ethics and moral behavior. Influences conduct of economic matters. Influences conduct of economic matters.

29 Hofstede’s Culture Dimensions

30 Cultural Dimension  Uncertainty avoidance. The cultural tendency toward discomfort with risk and ambiguity. The cultural tendency toward discomfort with risk and ambiguity. Preference for structured versus unstructured organizational situations. Preference for structured versus unstructured organizational situations. Example of a high uncertainty avoidance culture — France. Example of a high uncertainty avoidance culture — France. Example of a low uncertainty avoidance culture — Hong Kong. Example of a low uncertainty avoidance culture — Hong Kong.

31 Cultural Dimension  Power distance. The willingness of a culture to accept status and power differences among members. The willingness of a culture to accept status and power differences among members. Respect for hierarchy and rank in organizations. Respect for hierarchy and rank in organizations. Example of a high power distance culture — Indonesia. Example of a high power distance culture — Indonesia. Example of a low power distance culture — Sweden. Example of a low power distance culture — Sweden.

32 Cultural Dimension  Individualism-collectivism. The cultural tendency to emphasize individual or group interests. The cultural tendency to emphasize individual or group interests. Preferences for working individually or in groups. Preferences for working individually or in groups. Example of an individualistic culture — United States. Example of an individualistic culture — United States. Example of a collectivist culture — Japan. Example of a collectivist culture — Japan.

33 Cultural Dimension  Masculinity-femininity. The tendency of a culture to value stereotypical masculine or feminine traits. The tendency of a culture to value stereotypical masculine or feminine traits. Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships. Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships. Example of a masculine culture — Japan. Example of a masculine culture — Japan. Example of a feminine culture — Thailand Example of a feminine culture — Thailand

34 Cultural Dimension  Long-term/short-term orientation The tendency of a culture to emphasize future-oriented values versus present- oriented values. The tendency of a culture to emphasize future-oriented values versus present- oriented values. Adoption of long-term or short-term performance horizons. Adoption of long-term or short-term performance horizons. Example of a long-term orientation culture — South Korea. Example of a long-term orientation culture — South Korea. Example of a short-term orientation culture — United States. Example of a short-term orientation culture — United States.

35 Selected Countries on Hofstede’s Culture Dimensions

36

37 Types of Organizational Culture 1.Bureaucratic Formalization, rules, SOP, hierarchyFormalization, rules, SOP, hierarchy 2.Clan Tradition, loyalty, personal commitmentTradition, loyalty, personal commitment 3.Entrepreneurial Risk-taking, dynamism, creativityRisk-taking, dynamism, creativity 4.Market Achievement of financial/market goalsAchievement of financial/market goals

38 Types of Organizational Culture (cont.) Bureaucratic culture Bureaucratic culture Formalization, rules, standard operating procedures and hierarchical coordinationFormalization, rules, standard operating procedures and hierarchical coordination Long-term concerns are predictability, efficiency, and stabilityLong-term concerns are predictability, efficiency, and stability Members value standardized goods and customer serviceMembers value standardized goods and customer service Behavioural norms support formality over informalityBehavioural norms support formality over informality Rules/procedures in thick manual (‘go by the book’)Rules/procedures in thick manual (‘go by the book’)

39 Types of Organizational Culture (cont.) Clan culture Clan culture Tradition, loyalty, personal commitment, extensive socialization, teamwork, self- management and social influenceTradition, loyalty, personal commitment, extensive socialization, teamwork, self- management and social influence Obligation beyond simple exchange of labour for salary/wageObligation beyond simple exchange of labour for salary/wage Contributions exceed contractual agreementsContributions exceed contractual agreements Loyalty exchange for securityLoyalty exchange for security Achieves unity with long and thorough socializationAchieves unity with long and thorough socialization Members serve as mentors/role models for newer membersMembers serve as mentors/role models for newer members

40 Types of Organizational Culture (cont.) Shared image of organization’s style and conductShared image of organization’s style and conduct Strong sense of identification and recognition of interdependenceStrong sense of identification and recognition of interdependence Entrepreneurial culture Entrepreneurial culture Risk-taking, dynamism, creativityRisk-taking, dynamism, creativity Commitment to experimentation and innovationCommitment to experimentation and innovation Provides new and unique products and rapid growthProvides new and unique products and rapid growth Small to medium-sized companies still run by founderSmall to medium-sized companies still run by founder

41 Types of Organizational Culture (cont.) Market culture Market culture Achievement of measurable and demanding goalsAchievement of measurable and demanding goals Especially those that are financial and market- basedEspecially those that are financial and market- based Competitiveness and profit orientationCompetitiveness and profit orientation Relationship contractual and obligations agreed in advanceRelationship contractual and obligations agreed in advance Neither party recognizes the right of the other to demand more than was originally specifiedNeither party recognizes the right of the other to demand more than was originally specified Don’t promise/imply loyalty and securityDon’t promise/imply loyalty and security Utilitarian: Each party uses other to further its own goalsUtilitarian: Each party uses other to further its own goals

42 Framework of Types of Cultures Clan culture Formal Control Orientation Stable Flexible InternalExternal Focus of Attention Entrepreneurial culture Bureaucratic culture Market culture

43 Understanding cultural differences  Two problems in international dealings: parochialism and ethnocentrism. Parochialism — assuming that the ways of one’s own culture are the only ways of doing things. Parochialism — assuming that the ways of one’s own culture are the only ways of doing things. Ethnocentrism — assuming that the ways of one’s culture are the best ways of doing things. Ethnocentrism — assuming that the ways of one’s culture are the best ways of doing things.

44 Cultural differences in handling relationships with other people Universalism versus particularism.Universalism versus particularism. Individualism versus collectivism.Individualism versus collectivism. Neutral versus affective.Neutral versus affective. Specific versus diffuse.Specific versus diffuse. Achievement versus prescription.Achievement versus prescription.

45 Diversity

46 Diversity Management A diverse workforce requires managers with new leadership styles who understand employees’ varying needs and creatively respond by offering flexible management policies and practices

47 Workplace diversity Includes important human characteristics that influence values, perceptions of self and others, behaviours, and interpretations of events

48 Dimension of Diversity Core: Age Age Gender Gender Race Race Religion Religion Ethnicity & Culture Ethnicity & Culture Sexual Orientation Sexual Orientation Mental & Physical Disabilities Mental & Physical Disabilities Secondary: Education Education Past Work Experiences Past Work Experiences Family Status Family Status Income Income First Language First Language Recreational Interests Recreational Interests Geographic Location Geographic Location Family Background Family Background

49 Key Focus Areas – Global Firms KeyFocusAreas EmployeeSensitization to Differences Recruitment & Selection CompensationDecisionsOrientation, Training & Development PerformanceAppraisal

50 Recommendation : Key Focus Areas – Global Firms Recruitment & Selection PerformanceAppraisalOrientation, Training & DevelopmentCompensationDecisionsSensitizing to Cultural Differences Expatriates Host country nationals Third country nationals

51 Key Focus Areas – Global Firms Cross-cultural orientation themes LanguageLanguage Cultural normsCultural norms Managing personal and family lifeManaging personal and family life Cross-cultural training methods Cross-cultural training methods Sensitivity training, culture assimilators, critical incidents, cases, role-play, simulationSensitivity training, culture assimilators, critical incidents, cases, role-play, simulation Recruitment & Selection PerformanceAppraisalCompensationDecisionsSensitizing to Cultural DifferencesOrientation, Training & Development

52 Key Focus Areas – Global Firms Home country evaluations Home country evaluations Performance appraisal carried out by an expatriate’s home officePerformance appraisal carried out by an expatriate’s home office Host country evaluations Host country evaluations Performance appraisal carried out by an expatriate’s local (or host) officePerformance appraisal carried out by an expatriate’s local (or host) office PerformanceAppraisalOrientation, Training & DevelopmentCompensationDecisionsSensitizing to Cultural DifferencesRecruitment & Selection PerformanceAppraisal

53 Key Focus Areas – Global Firms International compensation International compensation Goes beyond pay and benefitsGoes beyond pay and benefits Relocation assistance Relocation assistance Financial or other assistance to help expatriates move to the new work destinationFinancial or other assistance to help expatriates move to the new work destination Orientation, Training & DevelopmentPerformanceAppraisalSensitizing to Cultural DifferencesRecruitment & Selection CompensationDecisions

54 Key Focus Areas – Global Firms Challenges to workforce diversity are amplified in international HR management Challenges to workforce diversity are amplified in international HR management Sensitizing to Cultural DifferencesOrientation, Training & DevelopmentPerformanceAppraisalCompensationDecisionsRecruitment & Selection

55 Recommendation Intercultural competencies Training Intercultural competencies Training

56 Thank you Cherine Soliman


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