Welcome to class of
Global Manager
by
Dr. Satyendra Singh
www.uwinnipeg.ca/~ssingh5
Objective
• To develop Global Manager
– Understand culture
– Function in new environment
– Create structure
– Implement strategy
–…
• No premature return from long-term
assignment from abroad
– Costs of failure can be very high
• Diversified MNCs have special issues
Diversified MNC Managers Face
Substantive Issues
• Integrate large intl. acquisitions
• Build worldwide logistic capability - 5Cs
– Character, cost, coverage, control, continuity
• Develop country-specific strategies
– political and economic environment
• Form
beneficial
collaborative
arrangements worldwide
• Balance pressures for global integration
and local demands
•  Need certain set of traits and skills
Global Manager Traits: Now vs. Future
Skills of Global Manager
• Global mindset
– Beyond learning culture and language
• Ability to
– 1 develop and use global strategic skills
– 2 manage change and transition
– 3 manage cultural diversity
– 4 design and function in flexible orgn structure
– 5 work with others and in team
– 6 communicate
– 7 learn and transfer knowledge in an orgn.
1 Global Strategic Skills
• No parochial views
• Flexible – required in different culture
• Good knowledge of
– International relations, Foreign affairs
– Global financial markets
– Exchange rate movements (interest, inflation…)
• Standardization vs. customization
• Local yet should fit global strategy
– Detergent: liquid vs. solid (Europe)
– Retailing: family/value pack vs. sachets (EM)
– McDonald (beer), KFC (rice)
2 Change and Transition
• Change
– Unstable environment – ongoing challenge
– Switch b/w standardization «» customization
– Needs reorganization of resources
• Human, technology, marketing, distribution…
• Managers must agree with the strategy
– Otherwise poorly implemented
– Country Mgr feel lost control  Resignations
• Moved from customization  standardization (HO)
• Transition through Alliances or IJV
– Alliances/IJV more difficult to change than wholly-owned subsidiary
• Requires multiple trusting relationship
3 Cultural Diversity - EPRG
• SRC: Self Reliance Criteria
– one’s own cultural values, experiences, and
knowledge as a basis for decisions
• EU ↑ multicultural than US Canada
– ↓ multicultural may be ↑ conflicts
• HO culture sh’d not dominate entire orgn culture
• Ethnocentric: HCN, reward, HO superiority, ↑
control, ↓ risky venture – export, sales affiliates
• Polycentric: Recognize diff, have confidence, local
• Regiocentric: Recognize regional differences
• Goecentric: Optimize resources, best practices,
superiority is not based on nationality.
• Performance: Geo>Regio/Poly>Ethnocentric
4 Flexible Orgn: Design and Function
• Learn, responsive and efficient
• Help people do more effectively
– Develop strategic thinking and action
– Open communication of plans
– Alignment bw HO and BO re. decision-making
– High tolerance for ambiguity
• Coordinate within and bw LOB
– Financial, HR, marketing, manufacturing…
• Identify SCA and prioritize across
different locations
– Accommodate the new structure and process
5 Working with People, Team
• Due to specialization of people, complexity
• What is team
– IJV partners, suppliers, customers…
• Becomes clear county requirement
– Accounting
• Economic reality vs. just standard accounting
• Accounting vs. legal requirements are met
• So, team develops intl. auditing standards
– Operations  relationship oriented…
• Participation in global team  global
outlook  global manager
• Ex- International Journal production
6 Communications…
• Diverse Group
– Multilingual
– Cross-cultural awareness
•
•
•
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Particularly important in advertisements
Lawsuit launched against global media by local media
Global media wish to retain advertising revenue
Local media wish to control advertising content
– Sensitivity to colleagues, customers…
• It leads to forming trust
• Becomes corporate Culture
• Shared Global value system
• Global communications – effectiveness?
– Ex. Kellogg Cereals, perfumes…
6 Communications…
6 Communications

7 Knowledge Transfer
• Globally competent  highly curious
– Experiment, take risks – calculated vs blind
• MNCs use the knowledge gained by
Mgrs and transfer effectively in
another country
– Corporate management responsibility
• Not all MNCs do that
– Particularly, if mgr re-enter home country
Ex: a visitor may learn > local, then
wrote a book!