Chapter 10: Developing a
Global Management
Cadre
PowerPoint by
Hettie A. Richardson
Louisiana State University
© 2008 Pearson Prentice Hall
10-1
Maximising Global
Human Resources
 Use international cadre through career
management to develop a top management
with global expirience
 Develop effective global management teams
 Promote the role of women and minorities
 Work with the host-country labor relations
systems to ease the strategic implementation
and higher the productivity
© 2008 Pearson Prentice Hall
10-2
The Expatriate Transition Process
Entry transition (initial confrontation)
Adjustment (adaptation)
Home country
Exit transition (anticipatory socialization)
Entry transition (initial confrontation)
Adjustment (adaptation)
Host country
Exit transition (anticipatory socialization)
Home country or
New Host country
© 2008 Pearson Prentice Hall
Entry transition (initial confrontation)
Adjustment (adaptation)
Exit transition (anticipatory socialization)
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Preparation, Adaptation,
Repatriation
 Reverse culture shock occurs because
 Reintegration is difficult
 Expatriates are often “out of sight, out of
mind”
 Feelings of alienation from “home”
 Poor management of expatriates means
fewer will be willing to take assignments
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Successful Repatriation
Programs
 Mentor programs
 Career planning and guidance units
 A system for maintaining contact with
expatriates
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The Role of the Expatriate
Spouse
 60% of expatriate spouses are employed
before the assignment, but only 21% are
employed during the assignment
 Spouse adjustment is more likely when:
The firm seeks the spouse’s opinion
 The spouse initiates predeparture training
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Reasons for Poor Expatriate
Retention
 Expatriates are highly marketable
 Overseas compensation packages are more
generous than those at home
 Expatriates feel unappreciated at home and
on assignment
© 2008 Pearson Prentice Hall
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The Role of Repatriation in
Developing a Global Cadre
 Successful expatriates acquire skills:
Managerial skills
 Tolerance for ambiguity
 Multiple perspectives
 Ability to work with and manage others
 Ability to do business overseas
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© 2008 Pearson Prentice Hall
10-8
Global Management Teams
 The term Global Management Team
describes
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a collection of managers
in or from several countries
who must rely on group collaboration
if each member is experience optimum
success and goal achievement
© 2008 Pearson Prentice Hall
10-9
Global Management Teams
 The effects of multicultural teams:
Domestic: Mostly internal operations
 International: Relationships among buyers,
sellers and other intermediaries
 Multinational: Internal, across culturally
diverse managers and technical people
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© 2008 Pearson Prentice Hall
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Global Teams in the Global
Enterprise
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Challenges for “Virtual” Global
Teams
 Geographic dispersal
 Cultural differences
 Language and communication
 Technology
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Future Needs for Virtual Training
 How to lead a virtual team meeting
 How to coach and mentor virtually
 How to monitor team progress
 How to use communication technologies
 How to manage team boundaries
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Criteria for Evaluating
Transnational Team Success
 Do members work together with a common
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purpose?
Has the team developed a common language or
procedure?
Does the team build on what works, learning to
identify the positives?
Does the team spell out matters within the limits of
the cultural differences involved?
Do members recognize the impact of their own
cultural programming on individual and group
behavior?
Does the team have fun?
© 2008 Pearson Prentice Hall
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Managing Global Business Teams
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The Role of Women in
International Management
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The Role of Women in
International Management
 Even US managers are reluctant to give
women expatriate assignments
 Evidence suggests foreigners are viewed first
as foreigners
© 2008 Pearson Prentice Hall
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Working with Local Labor
Relations Systems
 Labor relations and collective bargaining
 Three dimensions to consider:
The participation of labor in firm affairs
 The role and impact of unions
 Human resource policies
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© 2008 Pearson Prentice Hall
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Working with Local Labor
Relations Systems
 Labor relations constraints:
Wage levels set by unions
 Limits on the firm’s ability to vary
employment levels
 Limitations on the global integration of
operations
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 Example: Europe
© 2008 Pearson Prentice Hall
10-19
Organized Labor Around the
World
 Union membership is in decline
 Industrial, craft, conglomerate, and general
unions
 Labor unions must be understood within their
given contextual environment
© 2008 Pearson Prentice Hall
10-20
Management Focus: China
Empowers Unions
 The “iron rice bowl”
 China is adopting a new law to empower
unions and protect workers’ rights
 Foreign companies operating in China are
protesting this move
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Convergence in Labor Systems
 Forces for convergence:
Merger of ICFTU and WCL
 MNC desire for consistency and
coordination
 Increased monitoring of labor conditions
 Political and cultural shifts
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Divergence in Labor Systems
 Most MNCs still adapt practices to national
traditions
 The role of political ideology, overall social
structure, and history of industrial practices
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NAFTA and Labor Relations in
Mexico
 Labor issues subject to review under NAFTA:
minimum wages, child labor, and safety
 Workers believe MNCs use blacklists,
intimidation and economic pressure to
oppose union organization
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Example: General Electric
© 2008 Pearson Prentice Hall
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Comparative Management in Focus:
Labor Relations in Germany
 Codetermination law (mitbestimmung) is
coming under pressure
 Union works councils are “co-managers”
 German unions are increasingly willing to
make concessions
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Linde and IG Mettal
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Comparative Management in Focus:
Labor Relations in Germany
 The influence of Daimler-Chrysler and the US
 The German model holds that competition
should not be based on cost
 What is the value of codetermination?
© 2008 Pearson Prentice Hall
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