Presentation on theme: "Global Employment & Intercultural Management"— Presentation transcript:
1 Global Employment & Intercultural Management Presented By: Cherine SolimanMBATeacher Assistant in Contemporary Management
2 Agenda: Globalization Definition Globalization forces The Impact Why is globalization significant to organization?Types of global organizationGlobal EmploymentTypes of Global EmployeesTypes of Global AssignmentsSuccessful global employeesCauses of Expatriate assignment failureExpatriate adjustment StagesExpatriate compensation componentsCultureWhat is cultureDimension of cultureHow does globalization affect people at workMulticultural WorkplaceWhy DiversityDiversity managementWorkplace diversityDimension of diversityStrategic ImportanceTraditional versus new paradigmsCurrent industry practiceRecommendationKey focus areas – Global FirmsIntercultural competencies Training
4 Globalization Definition: This 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 PhysicalWorld becomes smallerExpatriatesGlobal CompaniesBusiness TravelersVirtualInternetMobile Communication
6 Globalization Forces Globalization Forces Global Population Changes Global CommunicationsGlobal Population ChangesGlobal Economic InterdependenceRegional Alliances NAFTA, EUGlobalization Forces
7 Why is globalization significant to organization? A global economy.Information technology and electronic communications have:Promoted a global economy.Created Internet business opportunities.Transnational movement of products, trends, values, and innovations.Multicultural workforces.
8 Why is globalization significant to organization? Regional economic alliances.European Union (EU).North American Free Trade Agreement (NAFTA).Caribbean Community (CARICOM).Andean Pact.Asia-Pacific Economic Co-operation Forum (APEC).
9 Why is globalization significant to organization? Global quality standards.ISO designation for quality standards.ISO framework for quality assurance worldwide.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.The global manager:Is often multilingual.Thinks with a world view.Appreciates diverse beliefs, values, behaviors, and practices.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.Globalization involves complex economic networks of competition, resource supplies, and product markets transcending national boundaries and circling the globe.
14 Types of Global Employees Global EmploymentTypes of Global EmployeesExpatriateThird-Country NationalHost-Country National
15 Global Employment: Expatriate Expatriates.People who live and work abroad for extended periods of time.Can be very costly for employers.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.
16 Types of Global Assignments Successful global employees
20 International Compensation Balance Sheet ApproachEqualizes 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 compensation and other benefits are protected during the international assignment.Global Market ApproachInternational assignments are viewed as continual and core components of compensation and benefits are provided regardless of assignment location.
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 peopleLike personality, culture affects in predictable ways how people behave when told what to doAn organization has own unique culture and subcultures among departments and employees
24 Popular dimensions of culture include: Language.Time orientation.Use of space.Religion.
25 Cultural Dimension Language. Perhaps the most visible aspect of culture.Whorfian hypothesis — considers language as a major determinant of thinking.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.
26 Cultural Dimension Time orientation. Polychronic cultures. Circular view of time.Does not create pressure for immediate action or performance.Emphasis on the present.Monochronic cultures.Linear view of time.Creates pressure for action and performance.Long-range goals and planning are important.
27 Cultural Dimension Use of space. Proxemics. The study of how people use space to communicate.Reveals important cultural differences.Concept of personal space varies across cultures.Space is arranged differently in different cultures.
28 Cultural Dimension Religion. A major element of culture. Can be a very visible aspect of culture.Often prescribes specific behavioral practices.Influences codes of ethics and moral behavior.Influences conduct of economic matters.
30 Cultural Dimension Uncertainty avoidance. The cultural tendency toward discomfort with risk and ambiguity.Preference for structured versus unstructured organizational situations.Example of a high uncertainty avoidance culture — France.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.Respect for hierarchy and rank in organizations.Example of a high power distance culture — Indonesia.Example of a low power distance culture — Sweden.
32 Cultural Dimension Individualism-collectivism. The cultural tendency to emphasize individual or group interests.Preferences for working individually or in groups.Example of an individualistic culture — United States.Example of a collectivist culture — Japan.
33 Cultural Dimension Masculinity-femininity. The tendency of a culture to value stereotypical masculine or feminine traits.Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships.Example of a masculine culture — Japan.Example of a feminine culture — Thailand
34 Cultural DimensionLong-term/short-term orientationThe tendency of a culture to emphasize future-oriented values versus present-oriented values.Adoption of long-term or short-term performance horizons.Example of a long-term orientation culture — South Korea.Example of a short-term orientation culture — United States.
35 Selected Countries on Hofstede’s Culture Dimensions
36 Selected Countries on Hofstede’s Culture Dimensions
37 Types of Organizational Culture BureaucraticFormalization, rules, SOP, hierarchyClanTradition, loyalty, personal commitmentEntrepreneurialRisk-taking, dynamism, creativityMarketAchievement of financial/market goals
38 Types of Organizational Culture (cont.) Bureaucratic cultureFormalization, rules, standard operating procedures and hierarchical coordinationLong-term concerns are predictability, efficiency, and stabilityMembers value standardized goods and customer serviceBehavioural norms support formality over informalityRules/procedures in thick manual (‘go by the book’)
39 Types of Organizational Culture (cont.) Clan cultureTradition, loyalty, personal commitment, extensive socialization, teamwork, self-management and social influenceObligation beyond simple exchange of labour for salary/wageContributions exceed contractual agreementsLoyalty exchange for securityAchieves unity with long and thorough socializationMembers serve as mentors/role models for newer members
40 Types of Organizational Culture (cont.) Shared image of organization’s style and conductStrong sense of identification and recognition of interdependenceEntrepreneurial cultureRisk-taking, dynamism, creativityCommitment to experimentation and innovationProvides new and unique products and rapid growthSmall to medium-sized companies still run by founder
41 Types of Organizational Culture (cont.) Market cultureAchievement of measurable and demanding goalsEspecially those that are financial and market-basedCompetitiveness and profit orientationRelationship contractual and obligations agreed in advanceNeither party recognizes the right of the other to demand more than was originally specifiedDon’t promise/imply loyalty and securityUtilitarian: Each party uses other to further its own goals
42 Framework of Types of Cultures Clan cultureFormal Control OrientationStableFlexibleInternalExternalFocus of AttentionEntrepreneurial cultureBureaucratic cultureMarket 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.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.Individualism versus collectivism.Neutral versus affective.Specific versus diffuse.Achievement versus prescription.
46 Diversity ManagementA 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 diversityIncludes important human characteristics that influence values, perceptions of self and others, behaviours, and interpretations of events
48 Dimension of Diversity Core:AgeGenderRaceReligionEthnicity & CultureSexual OrientationMental & Physical DisabilitiesSecondary:EducationPast Work ExperiencesFamily StatusIncomeFirst LanguageRecreational InterestsGeographic LocationFamily Background
49 Key Focus Areas – Global Firms EmployeeSensitizationto DifferencesRecruitment& SelectionKeyFocusAreasCompensationDecisionsOrientation,Training &DevelopmentPerformanceAppraisal
50 Recommendation : Key Focus Areas – Global Firms Recruitment& SelectionOrientation,Training &DevelopmentPerformanceAppraisalCompensationDecisionsSensitizingto CulturalDifferencesExpatriatesHost country nationalsThird country nationals
51 Key Focus Areas – Global Firms Recruitment& SelectionOrientation,Training &DevelopmentPerformanceAppraisalCompensationDecisionsSensitizingto CulturalDifferencesCross-cultural orientation themesLanguageCultural normsManaging personal and family lifeCross-cultural training methodsSensitivity training, culture assimilators, critical incidents, cases, role-play, simulation
52 Key Focus Areas – Global Firms Recruitment& SelectionOrientation,Training &DevelopmentPerformanceAppraisalPerformanceAppraisalCompensationDecisionsSensitizingto CulturalDifferencesHome country evaluationsPerformance appraisal carried out by an expatriate’s home officeHost country evaluationsPerformance appraisal carried out by an expatriate’s local (or host) office
53 Key Focus Areas – Global Firms Recruitment& SelectionOrientation,Training &DevelopmentPerformanceAppraisalCompensationDecisionsSensitizingto CulturalDifferencesInternational compensationGoes beyond pay and benefitsRelocation assistanceFinancial or other assistance to help expatriates move to the new work destination
54 Key Focus Areas – Global Firms Recruitment& SelectionOrientation,Training &DevelopmentPerformanceAppraisalCompensationDecisionsSensitizingto CulturalDifferencesChallenges to workforce diversity are amplified in international HR management
55 RecommendationIntercultural competencies Training