Int manage test 2
Independent Management
Alliance managers act more like managers from a separate company. IJVs often recruit managers from outside the parent companies.
How to handle performance appraisals and how to address in different cultures
Assumption in individualistic cultures is that performance appraisal systems provide rational and fair solutions to these HR problems
Performance Appraisal in individualism
Australia, Canada, and the United States (Taiwan and Latin America) These 3 are among the top five countries for all performance-appraisal purposes. Very high on individualism, with heavy emphasis on the individual development of the employee Performance appraisals are seen as the most effective method to gauge how well an employee is doing and how their performance can be improved.
Worldwide Matrix Structure
Balances the benefits produced by area and product structures Works best with near equal demands from both sides Requires extensive resources for communication and coordination Requires middle and upper level managers with good human relations skills In theory, produces quality decisions
How different cultures handle selection
Because the U.S. selection process is heavily based on personal achievements, applicants for jobs typically have to present themselves in such a way as to impress the recruiters. This focus on impression management may also result in self-presentation behaviors. Self-presentation simply refers to the applicant's efforts to present him- or herself in a more positive light by focusing on positive attributes or minimizing negative attributes.
Worldwide Matrix Structures
Both Worldwide Product Structure and Worldwide Geographic Structure have advantages and disadvantages: A Product Structure supports global products. A Geographic Structure emphasizes local adaptation. Multinationals often want both abilities. To balance the benefits of geographic and product structures, and to coordinate their subunits, some multinationals create a Worldwide Matrix Structure: A symmetrical organization with equal lines of authority for worldwide product groups and geographical divisions. The Geographic Divisions focus on national responsiveness. The Product Divisions focus on finding global efficiencies.
Training and Development in the United States
Companies with over 100 employees invest more than $60 billion in training costs. Management development and computer skills are the most popular. There is growing pressure on U. S. businesses to supplement basic educational training. The transition to a service sector economy means the need for specialized skills training will increase.
Types of employees in global organizations
Expatriate Home Country Nationals: Third Country Nationals Host Country Nationals Inpatriate Flexpatriates International Cadre (Globals) Commuter Assignments Employees Self-initiated expatriates
Home Country Nationals
Expatriate employees who come from the parent firm's home country
Third Country Nationals
Expatriate workers who come from neither the host nor the home country.
Fiedler's Theory of Leadership
Fiedler's Theory of Leadership holds that managers tend to be either task- or person-centered leaders. Success depends on three contingencies or characteristics of work situation: The relationship between leader and subordinates The degree to which subordinates' tasks are clearly defined The officially granted power of the leader
Contingency Models of Leadership
Fiedler's theory of leadership Path-goal theory
Team development stages
Forming stage Storming stage Norming stage Performing stage Adjourning stage
Characteristics of the Transnational
Global Efficiency National Responsiveness Worldwide Innovation & Learning
Issues that must be addressed when winning the talent war in emerging countries
HR Managers must decide the necessary extent of adaptation to local business & national cultures. leverage your brand, provide opertunity, have a purpose, display culture Recruitment Selection Training Performance Appraisal Compensation Labor Relations
High context cultures
High-context Language: people state things indirectly and implicitly. Asian and Arabic languages Communications may have multiple meanings depending on the context Nonverbal important Information flows freely Physical context relied upon for information Environment, situation, gestures, mood all taken into account Maintain extensive information networks
Selection in Collectivist Cultures
Hiring always takes the in-group into account. Preference is given to hiring relatives of first, the employer, then relatives of employees. This selection values potential trustworthiness, reliability, and loyalty over performance-related background. High school and university ties may substitute for family membership.
Split Control Management
Partners usually share strategic decision making and make functional decisions independently.
Worldwide Matrix Structures
Problems with Worldwide Matrix Structures: Slow decision making process Too bureaucratic Too many meetings and too much conflict Result: Some companies have abandoned their matrixes and returned to product structures. Others have redesigned their matrix structures to be more flexible with speedier decision making.
The Basic Product and Geographic Structures
Product Structure: departments around a particular product Geographic Structure: departments based on a particular geographic region. These units must still perform all of the functional tasks of a business. Functional tasks are duplicated for each unit, leading to loss of economies of scale, and loss of efficiency. Recent research also suggests the customer-focused organization structure, which uses groups of customers related by industry or application as the basis for designing the organizational structure.
Compensation in Russia
Russian compensation practices require an understanding of Soviet era compensation practices. During that time, employees were guaranteed jobs and compensation levels were determined by the government to ensure low wage differentiation. There are still some similarities with the Soviet model. Wages and benefits are still determined by influential individuals rather than objectively determined by the HR department.
Performing stage
Team is highly functional and team members operate without conflict.
Norming stage
Team members are familiar with appropriate team behaviors and focus on achieving team goals.
Forming stage
Team members becoming familiar with each other and assess the tasks that need to get done.
Adjourning stage
Team members disband as team goals are achieved.
different types of organizational structure
The Basic Functional Structure The Basic Product Structures The Basic Geographic Structures Hybrid Worldwide Product Structures Worldwide geographic Structures Worldwide Matrix Structures transnational network metanational
Dominant Parent
The Dominant Parent controls strategic and operational decision making. Often has majority ownership Treats the IJV as its wholly owned subsidiary
The Transnational Network Structure
The basic structural framework of The Transnational Network has 3 components: Dispersed subunits are subsidiaries located anywhere in the world they may benefit the firm. Specialized Operations are subunits that specialize, whether in product lines, research or marketing. Interdependent Relationships must exist to manage the dispersed and specialized subunits which share resources and information continuously.
How different cultures handle recruitment
While the U.S. favors open forms of recruitment, recruitment in collectivist societies tends to focus on the in-group, such as the family and friends of current employees. Backdoor Recruitment: prospective employees are friends or relatives of those already employed Looking for jobs through public vs. private agencies: Individuals in former communist and socialist societies were more likely to rely on public agencies. Individuals in more individualistic societies used private agencies.
Fundamental attribution error
an assumption by a manager that people behave in certain ways because of internal motivations, rather than outside factors
Shared Management
both parent companies contribute approximately the same number of managers to the alliance organization
Self-initiated expatriates
employees who independently decide to move to another country to work
What constitutes compensation in the global market
includes wages and salaries, incentives such as bonuses, and benefits such as retirement contributions. A country's economic development, cultural traditions, labor unions, and legal institutions all affect compensation.
Items to address when forming a joint venture
is a self-standing legal entity owned by two or more parent companies from different countries; each has an equity interest. Negotiation issues include: Products or services of the alliance Equity contributions (cash or other resources) Management structure "Prenuptial" agreements regarding dissolution
Great Person theory
is the idea that leaders are born with unique characteristics that make them quite different from ordinary people. Contemporary views of leadership traits do not assume that leaders are born
Hybrid Structure
mixes functional, geographic, and product units
Low context cultures
people state things directly and explicitly, and you need not understand the context. Examples: Most northern European languages including German, English, and the Scandinavian languages Less aware of nonverbal cues, environment, and situation Lack well-developed networks Need detailed background information Tend to segment and compartmentalize information Control information on a "need to know" basis Prefer explicit and careful directions from someone who "knows" Knowledge is a commodity
Industrial Union
represents all people in a particular industry, regardless of occupational type
Enterprise Union
represents all people in one organization, regardless of occupation or location
Ideological Union
represents all types of workers based on some particular ideology or religious orientation
Local Union
represents one occupational group in one company
White collar or professional Union
represents particular occupational group, similar to craft union
Craft Union
represents people from one occupational group, such as plumbers
self-serving bias
tendency to attribute our successes to internal factors and our failures to external factors
Host Country Nationals
: Local workers who come from the host country where the MNC unit is located.
Worldwide Geographic Structure
A Geographic Structure emphasizes local adaptation. In the Worldwide Geographic Structure, regions or large-market countries become the geographic divisions of the multinational company. The primary reason to adopt this structure is to implement a multi-domestic or regional strategy. Differentiation of products or services requires an organizational design with maximum geographic flexibility. The semiautonomous subunits provide flexibility to meet local needs. Country-level divisions usually exist only when a country's market size is sufficiently large to support its own organization.
Worldwide Product Structure
A Product Structure supports global products. Product divisions form the basic units of the Worldwide Product Structure: Each product division is responsible for producing and selling its products or services throughout the world. It may be the ideal structure to implement an international strategy in which the firm gains economies of scale by selling worldwide product activities based at home. This type of structure sacrifices the regional or local adaptation strengths derived from a geographical structure.
Training and Vocational Education in Germany
A sophisticated and standardized national system provides two major forms of vocational education: General and specialized vocational schools and professional and technical colleges Dual system: A combination of in-house apprenticeship training with part-time vocational-school training leads to a skilled worker certificate. With advanced training, one can achieve the status of Meister: a master technician. The German Dual System Stems from collaboration among employers, unions, and the state Costs are shared between companies and the state. Employers have an obligation to release employees for training. Produces a well-trained national labor force with skills that are not company specific Dual System under stress due to economic downturn
The Basic Functional Structure
Departments perform separate business functions such as marketing or manufacturing. Simplest structure - usually most efficient Efficiencies arise from economies of scale in each function because of cost savings when a large number of people do the same job in the same location. Coordination is difficult, as functional units are separated from each other and serve functional goals. The functional structure works best when the firm has few products, locations, and types of customers. Works best in a stable environment, with minimal need for adaptation.
How different countries address training and development
Differences in training and development are due to: Differences in educational systems Emphasis on training placed by national governments Cultural values regarding other personnel practices
Types of joint ventures
Dominant Parent Shared Management Split Control Management Independent Management Rotating Management
Storming stage
Emergence of intra-group conflicts occurs as team members try to get a better understanding of what needs to get done
Inpatriate
Employees from foreign countries who work in the country where the parent company is located.
Flexpatriates
Employees who are sent on frequent but short-term international assignments.
Expatriate
Employees who come from a country that is different from the one in which they are working
Commuter Assignments Employees
Employees who live in one country, but spend part of the work week in another country
Six types of union structures used around the globe
Enterprise Union Craft Union Ideological Union Local Union White collar or professional Union Industrial Union
actions to take to address the problems
Improve implementation, or Negotiate an end Create "prenuptial agreements" at the start of the venture in which the partners decide how to terminate the alliance
Performance Appraisal Collectivist Societies
In Collectivist Societies, performance appraisals may not be as important: Age and in-group memberships provide a large component of the psychological contract with the organization. Human resource decisions take into account personal background characteristics more than achievement. Managers indirectly sanction poor performance, and often avoid direct performance appraisal feedback.
Issues that faced by global teams.
Individuals are from different locations and different nationalities, making collaboration more difficult. Cultural differences can lead to miscommunication. Differences in problem solving. France - favors understanding why problem occurred; longer time to resolution. USA and Britain - tends to quick identification and solution to problem. Language differences can affect level of trust between team members. Power differentials Natural tendency for team members to categorize themselves based on similar versus dissimilar characteristics and behaviors. Global virtual teams lack face-to-face interaction, which can slow down communication.
How to make international assignments more successful
Key success factors for expatriate assignments: Technical and managerial skills Personality traits (flexible, willing to learn) Relational abilities (ability to adapt to other cultures) Family situation (spouse & family willingness to go) Stress tolerance (ability to maintain composure) Language ability (speak, read & write the language) Emotional intelligence (empathize, relate to others) Cross-cultural social intelligence: the ability of an individual to gauge and understand verbal and non verbal cues from a variety of cultures. Assignment length Short assignments focus on technical and professionals skills Cultural similarity Required interaction and communication with locals Job complexity and responsibility
Compensation in Japan
Like U.S. firms, Japanese firms determine base salaries largely by classification of positions. Seniority has two effects: Each position has minimum age requirements in addition to educational requirements. As the employee gains seniority, eligible to move up. Seniority factors into pay decisions, but at a declining rate, diminishing after age 45. More recently, the Japanese view of merit affects pay, a major shift. Economic pressures have led to adoption of the Nenpo System, an evaluation based on yearly performance evaluations that emphasize goals. Bonus system: Workers often receive as much as 30% of base salary, usually given twice a year, during traditional gift giving seasons.
Rotating Management
Managers from the partners rotate through the key positions in the management hierarchy. This structure is popular in developing countries. It serves to trains management talent and helps to transfer expertise to the developing country.
International Cadre (Globals)
Managers who specialize in international assignments.
choosing a partner in a strategic alliance
There are several key criteria for choosing an appropriate alliance partner: similar Stratigies, products, management, skills right level of dependancy, resources, and end game idea Seek strategic complementarity. Prospective partners must understand each other's strategic objectives, short & long term. Pick a partner with complementary skills. Technical complementarity is most important. Find partners with similar but not identical products. Seek out companies with compatible management styles. Seek a partner that will provide the "right" level of mutual dependency; partners must rely on each other. Avoid the "anchor" partner: Anchor Partner: a partner that holds back the strategic alliance because it cannot or will not provide its share of the funding. Be cautious of the "elephant-and-ant" complex. This occurs when two companies are greatly unequal in size. The large firm may dominate the smaller firm. Assess operating policy differences with potential partners. Assess the difficulty of cross-cultural communication with a likely partner. Does the partner have the necessary resources? Will the partner provide access to these necessary resources? Can both partners agree on clear goals and objectives for the strategic alliance? Have there been attempts to minimize potential for competition and friction with the partner? Does the potential partner have any alliances with your competitors?
Why do alliances not work
They may be poorly designed or managed. Partnering with a company from a different nation compounds management difficulties. Partners may disagree on how to run the business. Even profitable alliances can be torn by conflict.
What drives how organizations are organized?
Two basic questions involved in designing an organization: How shall we divide the work among the organization's subunits? How shall we coordinate and control the efforts of the units we create? In small organizations, there is little reason to divide work. Everyone does the same thing and everything As organizations grow, there is a need to divide work into specialized jobs and the organization into specialized subunits. Once an organization has specialized subunits, managers must develop measures to coordinate and control their efforts.
The Transnational Network Structure
Unlike the symmetrical matrix structure, The Transnational Network has no basic form, symmetry or balance between geographic and product divisions. Instead, it links different functional, product, and geographic subsidiaries dispersed worldwide. Nodes, units at the center of the network, coordinate product, functional and geographic information. No two subunits are alike. Transnational units evolve to take advantage of resources, talent and market opportunities wherever they exist in the world. Resources, people and ideas flow in all directions.
Path-Goal Theory
Using Path-Goal Theory, a leader might adopt one of four leadership styles, depending on the situation. These four styles are: Directive (give subordinates specific goals) Supportive (show concern for their needs) Participative (consult with them and encourage) Achievement-oriented (set goals and reward goal accomplishments) Key leadership suggestions based on path-goal theory: When subordinates have high achievement needs, adopt the achievement-oriented style. For subordinates with high social needs, adopt the supportive leadership style. When the job is unstructured, adopt a directive style or an achievement-oriented style.