MGT3013 International Management Lecture 1 PDF

MGT3013 International Management Lecture 1 Dr. Sally Cheung Department of Management 1 Welcome to MGT3013! ❖ Course overview ❖ Know your lecturer ❖ Lecture 1 Course syllabus – Let’s go through it together 3 Textboo...

MGT3013 International Management Lecture 1 Dr. Sally Cheung Department of Management 1 Welcome to MGT3013! ❖ Course overview ❖ Know your lecturer ❖ Lecture 1 Course syllabus – Let’s go through it together 3 Textbook Thomas, D. C. and Peterson, M. F. (2018). Cross-Cultural Management (4th edition). Thousand Oaks, CA: Sage Publishing. ❖ Watch out the email from LIB about the Online Textbook Fair 4 Assessments Class Participation 10% Midterm test: 25% Individual assignments: 30% Group assignments: 35% 100% Passing requirement: A minimum of 40% of the overall score 5 6 Attendance For any absence ❖ Students must inform me by email in advance or as quickly as possible; and ❖ Valid supporting document must be submitted within 7 calendar days from the day of absence. ❖ System will record as “absence” nevertheless. In the case of 7 consecutive days or more due to illness ❖ Submit application to Registry for seeking approved leave of absence 7 Mid-term Test (25%) ❖ Date: October 31, 2024 (Thu) ❖ Time: 50 minutes ❖ Venue: D301, D302 (seating plan TBD) ❖ Content to be covered: Lectures (chapters) 1 – 6 ❖ Format: 40 multiple-choice questions 8  Individual assignments (30%) ❖ Documentary analysis (15%) ❖ Based on the information given in a business scenario, students will make managerial decisions with justifications based on relevant theories and concepts learned. 9  Individual assignments (30%) ❖ Management Journal (15%) ❖ Students will reflect on their learning in international management and build a personalized reflective learning journal. ❖ A total of 5 management journals. (3% x 5 journals = 15%) ❖ Check course syllabus for the due date of each management journal 10  Group Assignments (35%) ❖ A group of 5 students ❖ Case study (20%) ❖ This is a written report which requires students to analyze a real-life international management case and make sensible recommendations by applying concepts learned in the course. ❖ Oral presentation (15%) ❖ Present the findings and recommendations in the case study report. 11 Individual Participation (10%) ❖ Active discussion in class (both quantity and quality matter) ❖ Speak up and don’t sweat too much, there are no absolute right or wrong answers. ❖ Complete class activities with a good quality of work. 12  Know your lecturer ❖ Dr. Sally Cheung (Sally) ❖ PhD in Management (HKUST); MSc in Strategic HRM (HKBU); MBA & BBA (U of Houston, Texas) ❖ Prior work experience ❖ Associate Professor, HKMU ❖ Assistant Professor, HKBU ❖ … 13  Lecture 1 Introduction: The role of global mangers Textbook: Chapter 1 14 Learning Objectives ❖ Describe “globalization” ❖ Identify the influence of information technology on international management ❖ Explain the connections between the economic and political contexts of business ❖ Understand the influence of migration on the global workforce ❖ Outline how the global context of international management affects managers’ work 15 Globalization ❖ Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. 16 Photo by Amy Humphries on Unsplash International Monetary Fund (2000) ❖ Economic "globalization" is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. There are also broader cultural, political and environmental dimensions of globalization that are not covered here. 17 https://www.imf.org/external/np/exr/ib/2000/041200to.htm The World Economic Forum ❖ In simple terms, globalization is the process by which people and goods move easily across borders. Principally, it's an economic concept – the integration of markets, trade and investments with few barriers to slow the flow of products and services between nations. There is also a cultural element, as ideas and traditions are traded and assimilated. https://www.weforum.org/agenda/2017/01/what-is-globalization-explainer/ 18 Key Drivers of Globalization The growing economic interconnectedness is driven by: ❖ Economic alliances, such as European Union (EU), North American Free Trade Agreement (NAFTA), The Association of Southeast Asian Nations (ASEAN), Belt and Road Initiative (BRI) ❖ Infrastructures, trade, people, resources 19 ❖ Foreign direct investment (FDI) ❖ (Connell Law School) FDI plays a key role in globalization, including by “creat[ing] direct, stable and long-lasting links between economies” and “encouraging the transfer of technology and know-how between economies.” ❖ (OECD) ❖ In the first half of 2023, USA was the top FDI destinations, followed by Brazil. Canada and Mexico ranked third. ❖ In the first half of 2023 , USA ranked first, followed by China and Japan as the top sources of FDI outflows. ❖ Cross-border and acquisition (M&A) activity continued to fall, especially in emerging markets and developing economies. 20 https://www.law.cornell.edu/wex/foreign_direct_investment https://www.oecd.org/daf/inv/FDI-in-Figures-October-2023.pdf ❖ Advancement in Information Technology ❖ A driver ❖ Information technology allows ease of access to information, resources, products and enterprise ❖ McKinsey Global Institute (2016) “Small businesses worldwide are becoming “micro-multinationals” by using digital platforms to connect with customers and suppliers in other countries. “ ❖ An outcome ❖ Globalization increases technology (including information) diffusion https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/ou r%20insights/digital%20globalization%20the%20new%20era%20of%20global%20flows/mgi- 21 digital-globalization-full-report.ashx  Cross-boarder Knowledge Transfer 22 https://www.imf.org/Publications/fandd/issues/2018/09/globalization-and-how-knowledge-spreads-eugster Impacts of globalization ❖ Multinational firms manufacture and sell on a global basis ❖ Stability of work environment within organizations is affected ❖ Downsizing (e.g., some jobs are outsourced to other countries) ❖ Labor mobility (e.g., global talent war) ❖ Privatization (e.g., turning SOEs into private firms) ❖ Movement toward team-based management (e.g., cross- border collaboration, virtual teams) 23  ❖ Downsizing: Moving manufacturing to lower-cost areas Financial Times: https://www.ft.com/content/b62fbfdd-ddb8-3c04-9101-d8411ed7afef 24 ❖ Labor mobility: People moving within a country or between countries ❖ Hong Kong “Brian drain”: Labor outflow since 2020 ❖ Brexit exacerbated the UK’s labor shortages. ❖ Increased hiring of HK and Ukraine immigrants. ❖ BUT… migration is unlikely a solution. Implications? https://www.bbc.com/news/articles/cw00yg9z0dgo https://www.environicsinstitute.org/projects/project-details/public-opinion-about-immigration-refugees https://www.cnbc.com/2022/05/27/people-are-leaving-hong-kong-and-here-is-where-they-are-going.html https://news.rthk.hk/rthk/en/component/k2/1661996-20220811.htm https://www.bbc.com/news/world-60555472 https://www.ft.com/content/89f0fc87-ebad-47fd-bdd4-748c42c49a15 25 https://www.smf.co.uk/one-in-five-u-k-employers-has-hired-a-ukrainian-report-reveals/  ❖ Privatization: State-owned business are sold to private investors ❖ Increased competition due to international trade and investments ❖ Privatization is a means for many nations to raise investment capital and repay debts ❖ State- and privately-owned enterprises differ in work life and management Implications? 26 https://training.itcilo.org/actrav_cdrom1/english/global/frame/energy3.htm ❖ Team-based management: ❖ Many companies rely on a geographically dispersed workforce to leverage on the knowledge benefits of international diversity. ❖ What may be some challenges in managing these teams? ❖ Miscommunications (e.g., language barriers) ❖ Cultural differences (e.g., decision-making processes, values) https://hbr.org/2015/10/global-teams-that-work 27  Different players on the global stage ❖ Firm ❖ Foreign constituency ❖ Home-country governments Global ❖ Host-country governments managers face ❖ International agencies a more ❖ Special interest groups complex, dynamic, ❖ E.g., political parties, unions, NGOs, customers uncertain and ❖ Economic alliances competitive ❖ Transactional crime and terrorist groups environment. Photo 28 by Ben White on Unsplash The Role of Global managers ❖ Global managers perform the same management functions as the other managers ❖ Planning ❖ Organizing ❖ Leading ❖ Controlling ❖ BUT… in a more complex and uncertain environment 29 Global Managers may draw on various sources of guidance ❖ Personal experience and training ❖ Role set members: colleagues, superiors, subordinates, staff departments, internal and external consultants, friends and family members ❖ Norms: explicit organizational rules and procedures, governmental laws, implicit norms ❖ These sources of guidance influence understanding of the issues, identification of problems, decision making. 30 Managerial Roles ❖ Global managers may emphasis different roles depending on the constraints and demands of the national and organizational environment. ❖ Examples of direct influences ❖ Environmental complexity: Increased frequency of informational role (monitor) ❖ Degree of centralization: downward communication (informational role – dissimilation) in more centralized organization 31 Managerial Roles ❖ BUT… CULTURE indirectly influence managerial role by shaping the context in which manages must perform ❖ How we think ❖ How we behave ❖ What we consider to be right and wrong ❖ E.g., organizational design, reward systems ❖ This course takes a cultural approach to understand international management ❖ Culture has a broad influence on behavior but it’s hard to observe 32 What will we cover in the coming weeks? ❖ Chapters 1 – 4: Concepts of culture ❖ Chapters 5 – 8: Impacts of culture on individuals’ cognition, motivation and behaviors ❖ Chapter 9: Talent management of multinational corporations ❖ Chapters 10 & 11: Ongoing and new challenges in international management 33 What you have learnt today ❖ Globalization ❖ Its meaning ❖ Factors driving the process ❖ Its impacts and implications on international management Read Chapter 1 Review MCQs for Lecture (Chapter) 1 34 Thank you!