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

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

3. Globalization

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
Physical
World becomes smaller
Expatriates
Global Companies
Business Travelers
Virtual
Internet
Mobile Communication

6. Globalization Forces Globalization Forces Global Population Changes
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:
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.

12. Types of Global Organization

13. Global Employment

14. Types of Global Employees
Global Employment
Types of Global Employees
Expatriate
Third-Country National
Host-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

17. Successful global employees

18. Causes of Expatriate assignment failure

19. Expatriate adjustment Stages

20. International Compensation
Balance Sheet Approach
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 compensation and other benefits are protected during the international assignment.
Global Market Approach
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
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

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.

29. Hofstede’s Culture Dimensions

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 Dimension
Long-term/short-term orientation
The 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
Bureaucratic
Formalization, rules, SOP, hierarchy
Clan
Tradition, loyalty, personal commitment
Entrepreneurial
Risk-taking, dynamism, creativity
Market
Achievement of financial/market goals

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

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

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

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

42. Framework of Types of Cultures
Clan culture
Formal Control Orientation
Stable
Flexible
Internal
External
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.
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.

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

49. Key Focus Areas – Global Firms
Employee
Sensitization
to Differences
Recruitment
& Selection
Key
Focus
Areas
Compensation
Decisions
Orientation,
Training &
Development
Performance
Appraisal

50. Recommendation : Key Focus Areas – Global Firms
Recruitment
& Selection
Orientation,
Training &
Development
Performance
Appraisal
Compensation
Decisions
Sensitizing
to Cultural
Differences
Expatriates
Host country nationals
Third country nationals

51. Key Focus Areas – Global Firms
Recruitment
& Selection
Orientation,
Training &
Development
Performance
Appraisal
Compensation
Decisions
Sensitizing
to Cultural
Differences
Cross-cultural orientation themes
Language
Cultural norms
Managing personal and family life
Cross-cultural training methods
Sensitivity training, culture assimilators, critical incidents, cases, role-play, simulation

52. Key Focus Areas – Global Firms
Recruitment
& Selection
Orientation,
Training &
Development
Performance
Appraisal
Performance
Appraisal
Compensation
Decisions
Sensitizing
to Cultural
Differences
Home country evaluations
Performance appraisal carried out by an expatriate’s home office
Host country evaluations
Performance appraisal carried out by an expatriate’s local (or host) office

53. Key Focus Areas – Global Firms
Recruitment
& Selection
Orientation,
Training &
Development
Performance
Appraisal
Compensation
Decisions
Sensitizing
to Cultural
Differences
International compensation
Goes beyond pay and benefits
Relocation assistance
Financial or other assistance to help expatriates move to the new work destination

54. Key Focus Areas – Global Firms
Recruitment
& Selection
Orientation,
Training &
Development
Performance
Appraisal
Compensation
Decisions
Sensitizing
to Cultural
Differences
Challenges to workforce diversity are amplified in international HR management

55. Recommendation
Intercultural competencies Training

56. Thank you
Cherine Soliman