03GlobalMgmt.pptx

Global Management Engineering Management  Module 3: Global Management Goabroad.com Engineering Management  Module 3: Global Management Diosdado “Dado” Banatao Engineering Managemen...

Global Management Engineering Management  Module 3: Global Management Goabroad.com Engineering Management  Module 3: Global Management Diosdado “Dado” Banatao Engineering Management  Module 3: Global Management What kind of leader am I? A B C D Engineering Management Global Management  Module 3: Global Management Global Management ✔ the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political and cultural environments Global Engineer ✔ Human Skills (cultural and personal skills to work effectively anywhere in the world ✔ Technical competence ✔ Conceptual (advancing objectives) Engineering Management  Module 3: Global Management Competencies of Global Leaders ✔ Strategic Mindset ✔ Customer Focus ✔ Analytical Thinking / Ability to Spot trends ✔ Engaged and a Team-player ✔ Risk-taker ✔ Deep knowledge and Expertise Engineering Management  Module 3: Global Management Competencies of Global Leaders ✔ Strategic Mindset ✔ Customer Focus ✔ Analytical Thinking / Ability to Spot trends ✔ Engaged and a Team-player ✔ Risk-taker ✔ Deep knowledge and Expertise Engineering Management  Module 3: Global Management Globalization Globalization represents the global integration of international trade, investment, information technology and cultures. Government policies designed to open economies domestically and internationally to boost development in poorer countries and raise standards of living for their people are what drive globalization. Engineering Management  Module 3: Global Management WHY SHOULD YOU LEARN ABOUT INTERNATIONAL MANAGEMENT? You need to learn about international management because you may find yourself in any of the following situations: ⮚ dealing with customers or partners from different cultures ⮚ buying components, raw materials, or services from foreign suppliers ⮚ working for a superior from a foreign country ⮚ working in a foreign subsidiary or for a foreign firm located in another country Engineering Management  Module 3: Global Management THREE PRIMARY ATTITUDES AMONG INTERNATIONAL 1. MANAGERS Ethnocentric - managers who believe that their native country, culture, language, and behavior are superior to all others. 2. Polycentric - managers who believe native managers in foreign offices best understand native personnel and practices, and so the home office should leave them alone. 3. Geocentric - accept that there are differences and similarities between home and foreign personnel and practices, and that they should use whatever techniques are Engineering most effective Management  Module 3: Global Management WHY DO COMPANIES EXPAND INTERNATIONALLY? Firms expand internationally to take advantage of: 1. Availability of supplies 2. New markets 3. Lower labor costs 4. Access to finance capital 5. Avoidance of tariffs & import quotas Engineering Management  Module 3: Global Management HOW DO COMPANIES EXPAND INTERNATIONALLY? There are five ways to expand internationally: 1. Global outsourcing 2. Importing, exporting, and countertrading 3. Licensing and franchising 4. Joint ventures 5. Wholly-owned subsidiaries Engineering Management  Module 3: Global Management WHY SHOULD MANAGERS UNDERSTAND CULTURAL DIFFERENCES BETWEEN COUNTRIES? Culture is the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people Misunderstandings and miscommunications in international business often occur because of cultural misunderstandings. Engineering Management  Module 3: Global Management Intercultural communication a form of communication that shares information across different cultures and social groups. One framework for approaching intercultural communication is with high- context and low-context cultures Engineering Management  Module 3: Global Management High-Context Cultures A high-context culture relies on implicit communication and nonverbal cues. In high- context communication, a message cannot be understood without a great deal of background information. Asian, African, Arab, central European and Latin American cultures are generally considered to be high-context cultures. Engineering Management  Module 3: Global Management High-Context Cultures Association: Relationships build slowly and depend on trust. Productivity depends on relationships and the group process. Interaction: Nonverbal elements such as voice tone, gestures, facial expression and eye movement are significant. Verbal messages are indirect, and communication is seen as an art form or way of engaging someone. Learning: Multiple sources of information are used. Thinking proceeds from general to specific. Learning occurs by observing others as they model or demonstrate and then practicing. Groups are preferred, and accuracy is valued. Engineering Management  Module 3: Global Management Low-Context Cultures A low-context culture relies on explicit communication. In low-context communication, more of the information in a message is spelled out and defined. Cultures with western European roots, such as the United States and Australia, are generally considered to be low-context cultures. Engineering Management  Module 3: Global Management Low-Context Cultures Association: Relationships begin and end quickly. Productivity depends on procedures and paying attention to the goal. Interaction: Nonverbal elements are not significant. Verbal messages are explicit, and communication is seen as a way of exchanging information, ideas and opinions. Learning: One source of information is used. Thinking proceeds from specific to general. Learning occurs by following the explicit directions and explanations of others. Individual orientation is preferred, and speed is valued. Engineering Management  Module 3: Global Management The Importance Of Understanding Cultural Differences Managers need to bridge cross-cultural gaps by understanding basic cultural across four areas 1. Language - more than 3,000 different languages are spoken in the world 2. Interpersonal space - how close people should be when communicating varies by culture 3. Time orientation - time orientation varies by culture 4. Religion - Christianity has the largest Engineering Management  Module 3: Global Management Your key takeaways or thoughts from today’s session? Engineering Management