On International Project Management - Research Proposal Example

?Running Head: Proposal on International Project Management Proposal on International Project Management [Institute’s Proposal on International Project Management Introduction An international project manager has the job of reviving business within a completely different situation. He or she has to find out the general formation of the business in addition to its workflow. Within an operational-based business, (that is to say the new place requires being capable of carrying out homogenized duties that act in accordance with general business practices), experienced workforce and capability to carry out these chores is crucial (Campbell & Collins, p. 89, 2010). Technical framework could be an important aspect. For a region-based business, location is essential, and thorough understanding of the country in addition to its way of life is vital. Products may have to be modified according to the host marketplace. An international-based formation may have a diverse set of product lines, every one of which can be prepared and advertised all over the locations. These styles can be merged, although selecting the formation of the business should sustain the company's most important objectives. Several businesses begin by initially starting the fresh administrative centre or “facility as an export division that falls under the umbrella of Operations or Marketing” (Levin & Ward, p. 292, 2011) - which might turn out to be an International Division in the long run. How this fresh setup best goes along within the parent business's general formation relies on the idea for the fresh location as well as how much the parent business wants to develop. Other alternatives take account of starting a completely owned subsidiary or a joint venture in a foreign country, dealing from an international company to produce goods to requirement, or acquiring materials and / or supplies from an international company producer. Other concerns take account of the added expenditures of globalization, for instance, global freight, indemnity, protective material (equal to 11 percent of production costs), sales conditions, import charges, agent's payments, inventory charges, and worldwide travel. Research Objective The objective of this research is to acquire a better insight on the challenges imposed on the international project manager by the characteristics of host country. The aim is to come up with an outcome that will reveal this and presents a solution to cope with these differences. Research Question How the characteristics of different countries along with varying cultures affect the capabilities of international project manager? Literature Review Struggle within the international market continues to rise, mainly among the “United States, the European Union, and Asian nations” (Biermann & Siebenhuner, p. 192, 2009). Due to this, businesses have to calculate the aggressive setting of the host nation. Primarily, it is useful to realize that the character of competition differs by region as well as by business. A number of countries support an environment of “pure competition” (Comfort & Franklin, p. 92, 2011); for instance, there may be any amount of retailers, everyone with comparatively tiny market share, with competition supported exclusively by price. Some may be additionally monopolistic. Taking into consideration the kind of environment within which an international project manager has to work, guarantees the application of suitable business practices. Risks that are more specific originate from existing competitors, fresh competitors who may as well come into the marketplace, in addition to the negotiating authority of dealers as well as consumers within the host country or area. In addition, several countries' trade settings make penetrating the market complicated as compared to others. National Culture There are several views about what a culture includes. A general idea is that culture is linked with human morals. The standard notion regarding the phrase culture has connections to proper activities and learning. In scientific theory, culture is known as an initial aspect of existence. The expression does not merely take account of actions that relate to improve the understanding, but also the simple things that life incorporates. According to Hofstede’s five cultural dimensions, humans are “carrying on a mental program” (Reynolds, p. 102, 2006), which has been expanded inside the family unit during early infancy and have been inflicted in educational institutions and other organizations afterwards. Every human being’s psychological indoctrination is exclusive in some measure and to some extent shared with others. Culture is something that a person learns, nothing that he is born with, it starts from one’s societal background instead of from his genes. Culture should be detached from the human personality as well as from the individual behaviour. Precisely, where the margins are between personality and culture as well as between culture and individuality is an issue that has being examined among social scientists. Specific for the Individual Personality Hereditary and Learnt Specific for the group or the category Culture Learnt Universal The human Nature Hereditary Figure 1: Distinctiveness on the three levels in human being’s mental programming (Kangari & Lucas, p. 199, 1997). The most basic programming level is the human character. “This is the level of culture that all humans have” (Professional Risk Managers' International Association, p. 213, 2007). The genes choose it. It incorporates the capability to experience contentment, apprehension, anger, delight, disgrace, and the need of staying together. The cultural variations discover expression by various methods. Of all the expressions that are being utilized to portray the cultural signs, these four involves the complete happening: first aspect is symbols; second aspect is heroes; third aspect is rituals; and fourth aspect is values. International project managers must always be ahead of the major variables within their environments. There are a number of aspects that are very essential to be aware of, for instance, the character of all sort of global business entities. These aspects are ownership, venture, administration and controlling structure, advertising segmentation, subsidiaries’ independence, and customers’ standard of living. Characteristics of a Country While exploring the competitive environment, it is as well useful to realize the influence exerted by several of the world's transnational corporations. A number of the world's excellent transnational corporations receive more in profits every year as compared to most countries. “While this does not indicate other businesses cannot compete with the goods and services presented by these businesses” (Zsolnai, p. 83, 2009), it helps to recognize that these transnational corporations are concerned about ascertaining direction, lobbying business (Zsolnai, p. 83, 2009), and other actions that have direct blow on the regulations and laws that have an effect on whole business sector and the way smaller companies can carry out global business. Knowledge of global anti-trust commandments, and when they are implemented, is vital to consider the threats faced by an international project manager. The European Union is lenient on implementing anti-trust regulations, but does apply them as a way to impose fines on alliances. Some of the financial factors that affect international project manager are host country's financial system: “free-market vs. centrally planned, or mixed; Gross Domestic Product (GDP), Gross National Product (GNP), and per capita income” (Nelson, p. 72, 1998) - all are estimates to customer purchasing power; Spending behaviours of host country’s residents; deviation in level of growth or industrialization; infrastructure as well as expertise accessible to business; variations in accessible schooling as well as health care. A number of financial systems are less friendly to employment formation than others. For instance, in Western Europe high minimum earnings, healthy unemployment perks, and employment security regulations are considerable hurdles to companies eager to create employment development within this region of the world. This as well as other concerns also have an influence on searching workforce to help organization and supervise international functions. The political atmosphere has a significant part in determining how international project manager will supervise business operations. Examples of political forces faced by international project manager take account of “governments, political parties, and ideological beliefs (communism, capitalism, socialism, liberal, conservative, etc.); nature of government-business relationships; laws and attitude toward business; tariffs and quotas; Currency controls (limits on the amount of money entering or leaving a country)” (Jie, p. 183, 2009). In addition to evaluating the constancy of the recognized government within the region in which it carries out business, governments can confiscate assets owned by foreigners inside its borders. This is recognized as expropriation in instances where the government follows up with fast, satisfactory recompense for past owners of the assets. On the other hand, a number of governments may seize assets, meaning previous owners do not get appropriate reimbursement. Research of the accessible workforce should be carried out earlier than a business decides to expand its operations to a particular country. International project managers have to decide whether there are an adequate amount of individuals with the accurate skill level for a company to run the business successfully, and whether or not they would like to work for a foreign company. While recruiting global operations, managers should be able to fill positions from a pool of labour (Linehan, p. 78, 2000) with the precise education and expertise to preserve and develop the business. Hiring alternatives incorporate selecting from “the parent business, selecting individuals from the host country, or hiring from a home subsidiary. Guest workers may also provide labour, and are particularly helpful in times of rapid growth - when native workers are not willing or able to fill all positions and they do not feel displaced. However, even in times of growth, bringing in large numbers of guest workers (foreigners) often causes friction with citizens of the host country” (Melkman & Trorman, p. 229, 2005). Suitable planning also facilitates an international project manager to identify other forces that are beyond control (but have to be managed) and plan in accordance with the other factors. Managers of international operations have to be aware with the effects of cost and earnings controls, workforce regulations, and “currency exchange” (Gladstone, p. 391, 1993) within the host nation. In Europe, the government has a very dynamic part in legislating incomes and functioning situations, mainly in Germany and France. Being aware of cultural concerns is important to international project manager usually, although culture has a principally significant part in making a workforce outside the home country. Another concern is race, which is a basis of inconsistency as well as prejudice in several regions, as is social standing. Sacred, ethnic, national, and other cultural aspects have an influence, not only on employment, but also on how a global business will be thought about by the host culture and how many individuals will purchase goods prepared by the company. Nonetheless, if managers are up to date and take care of cultural concerns appropriately, people from changed cultures, having different aptitude as well as levels of experience can reinforce the management of a global company on the whole (Vernon et al, p. 308, 1995). Several companies have particular complicatedness knowing competent management to successfully handle international companies. Successful project managers of international companies must appreciate inspiration, management, communication, disagreement, and other behavioural concerns that take place in cross-national as well as cross-cultural framework. The capability to deal with these concerns relies on an understanding of the host country’s characteristics. Other abilities mentioned as way to thriving global management take account of technological proficiency; capability to converse, (Alder & Gunderson, p. 92, 2007) or motivation to gain knowledge of the host language; acceptance for uncertainty along with capability to deal with vagueness; tolerant approach; capability to psychologically attach with individuals from different ethnicities and environments, and to be aware of contradictory point of views; individual truthfulness; sturdy assurance to individual and business values; and curious state of mind/constant learning. International project manager must be adjustable and have a high acceptance for modification and uncertainty. They are most flourishing when provided with independence as well as carefulness in the place of work. General business expertise on the part of management facilitates to guarantee an international business will run fine. Detailed knowledge of both the business as well as industry is significant, together with an aptitude to influence that knowledge when planning, classifying, and executing ideas. On a more realistic point, international project managers must be capable enough to supervise accounting as well as auditing, business plans, strategies and processes, information systems, and business traditions - all of which show a discrepancy based on the infrastructure and characteristics of the host nation (Deresky, p. 402, 2010). International project managers should be dealing with the significance of circumstance in various nations. Circumstance indicates the point on which communication takes place outside of oral conversation. High-context communication relies greatly on signs, body language, in addition to other nonverbal signals. Most of which is communicated is understood, or assumed, and supposed to be known through other signals. Low-context communication is unambiguous as well as defined, depending little on nonverbal exaggeration for connotation. Majority of these, and other cultural customs, is discovered by mean of socialization. Culture controls management customs also, together with negotiation methods, decision making, and incentives and appreciation plans. For instance, while carrying out business, associates of some cultures “sit right down to business after shaking hands” (Luthans & Doh, p. 312, 2008). In other nations, it is considered discourteous to talk about business whatsoever until after both parties have spent a considerable amount of time developing a connection. Other administration soft talents, for instance enthusiasm, taking decisions, and recompensing workers, rely on cultural aspects also. Technology is a significant aspect that can show a discrepancy considerably, relying on the idea of foreign venture and how essential it is for expertise to be homogenized across business divisions. Whereas a number of business heads may select to develop globally to take benefit from low cost labour or lesser production costs, mainly in developing countries, they may as well require a plan for transitional and suitable expertise (Mead & Andrews, p. 218, 2009). The manufacturing procedures used may differ from sophisticated to primitive, relying on the financial, cultural, and opinionated variables of the host country. A few government bodies recommend shareholders to think about transitional technology instead of the highly mechanized apparatus and procedures of developed nations, in part because less developed nations need the infrastructure to sustain such technology. Companies may act in response by looking for a suitable technology that goes well with a country's assets, or it may opt to invest somewhere else (Phatak et al, p. 143, 2008). Research Strategy/Methodology To gather the primary data for this research, web surveys will be used and secondary data will be gathered by means of previously published research work, papers, journals and relevant books. For analysis of gathered data, statistical analysis method is used. Proposed Project Timescales Number Phases Date Date Date Date Date Date 1 Preliminary Investigation 1st week 2 Data Gathering 2nd week 3 Analysis of Data 3-4th week 4 Report Writing 5-6th week 5 Rough Draft of Research Paper 7th week 6 Final Paper 8th week References Alder, N. J. and Gunderson, A. 2007. International Dimensions of Organizational Behavior. South-Western College Publications. Biermann, F. and Siebenhuner, B. 2009. Managers of Global Change: The Influence of International Environmental Bureaucracies. The MIT Press. Campbell, C. A. and Collins, M. 2010. The One-Page Project Manager for Execution: Drive Strategy and Solve Problems with a Single Sheet of Paper. Wiley. Comfort, J. and Franklin, P. 2011. The Mindful International Manager: How to Work Effectively Across Cultures. Kogan Page. Deresky, H. 2010. International Management: Managing Across Borders and Cultures, Text and Cases. Prentice Hall. Gladstone, A. 1993. The manager's guide to international labour standards. International Labour Office. Jie, T. 2009. Managers and Mandarins in China: the Building of an International Business Alliance. Routledge. Kangari, R. and Lucas, C. L. 1997. Managing International Operations. Amer Society of Civil Engineers. Levin, G. and Ward, J. L. 2011. Program Management Complexity: A Competency Model. Auerbach Publications. Linehan, M. 2000. Senior Female International Managers. Ashgate Pub Ltd. Luthans, F. and Doh, J. 2008. International Management: Culture, Strategy, and Behavior. McGraw-Hill/Irwin. Mead, R. and Andrews, T. G. 2009. International Management. Wiley-Blackwell. Melkman, A. and Trotman, J. 2005. Training International Managers: Designing, Deploying and Delivering Effective Training for Multi-cultural Groups. Gower Pub Co. Nelson, C. A. 1998. International Business: A Manager's Guide to Strategy in the Age of Globalism. International Thomson Business Press. Phatak, A. Bhagat, R. and Kashlak, R. 2008. International Management: Managing in a Diverse and Dynamic Global Environment. McGraw-Hill/Irwin. Professional Risk Managers' International Association. 2007. The Professional Risk Managers' Guide to the Energy Market. McGraw-Hill. Reynolds, D. 2006. To what extent does performance-related feedback affect managers' self-efficacy? Elsevier. Vernon, R. Wells, L. T. and Rangan, S. 1995. Manager in the International Economy. Prentice Hall. Zsolnai, L. 2009. The Future International Manager: A Vision of the Roles and Duties of Management. Palgrave Macmillan. Read More