Globalization and need for Global Managers - Assignment Example

Globalization and need for Global Managers Contents Introduction 2 Globalization and Implications on Management Development 3 Critical Analysis of Theories and Models of Management Development in global economy 6 Behaviourists Theories of Learning 7 Cognitive Theory of Learning 7 Social Learning Theories 8 Situated Learning Model 9 Andragogical Model of Learning 9 The experiential learning model 10 Formation of a Global Manager 12 Conclusion 15 References 16 Introduction Organizations strive to achieve success and once the local market is saturated, they tend to expand their operations in order to explore new territories. This expansion presents them with multiple challenges although for clarity the challenges related to management development of global managers are discussed in this report. With need of new managers to lead the operations in foreign countries, these organizations have two options, hire the manager from the explored country and provide him/her with necessary trainings related to organizational culture and other company literature through L&D techniques or the second option is deputizing a manager from origin country to the newly explored one. Both options carry a certain risk for the organization as resident manager may fail to adopt and adjust to the organizational culture and similarly the deputized manager to the newly explored country may not adjust to the new environment, culture or the workers. To provide solution to this dilemma certain L&D techniques can help organizations to develop global managers that can motivate their staff to provide desired results in spite of the distance or location. In light of globalization, organizations must equip their managers with enhanced team management skills, problem solving skills, analytical skills with special emphasis on interpersonal and communication skills (Sadler-Smith, 2006, p.128). The paper investigates and compares the classical theories of learning and development with a global perspective and provides recommendations related to practices that can be adopted by the organizations to develop global managers with enhanced scope, increased breadth of responsibilities with an ability to ensure readiness of business and team against future global challenges. Globalization and Implications on Management Development Globalization has brought us all together, it has changed the way organizations operated and those who could not keep up with the pace have fallen behind or are restricted to some regions only while the competitors who aligned their objectives accordingly and accepted globalization in their strategic planning have seen global success in the business arena. With India, Middle East, Russia and China opening their doors to the world, new markets have emerged with enhanced opportunities for business to explore an overwhelming population in these countries that remained untapped to the conservative nature of their economies. Almost all organizations want to expand their offerings to these new markets and acquire revenues from these emerging countries where middle class is developing rapidly. In order to be accepted in these countries the organization must carry its global image to the target market but should localize their products according to the need of the particular country or region. Where many organizations have failed to achieve the success they expected from these markets some have become very successful; the main reasons for this success was localization of their products with the image of a global brand and by accepting and promoting diversity within their workforce by hiring more and more local human resources. With an increase in diversity the need for a manager to be multifaceted is necessary and a true leader in this globalized world should possess the ability to handle people from various backgrounds, countries, regions and cultures (Sadler-Smith, 2006, p.319). It is more than often witnessed that organizations tend to appoint staff from their headquarters while trying to penetrate in to a new market, a leader that does not understand the new market and has a completely different approach to managing the workforce can fail miserably. As a result of such issues the need for managers and leaders that can be effective in multiple regions has gained much focus in the last two decades and in order to equip these personnel with necessary tools Management Development programs should be designed accordingly. If one looks closely in to the history of globalization, at a more earlier stage organizations with big brand names penetrated in to the new economies without changing their products; they tried to enforce their global brand and similar product to the market with no or very minute localization, in some cases even the advertising campaigns were not changed with a used language that cannot be understood by majority of the population. The recent failures of internet giants Yahoo, Facebook, Ebay, Twitter and MySpace in China provide testament to this claim, while non-internet related business such as Home Depot, Tiffany, Best Buy and others also failed miserably. The successful ones like IKEA, BMW, Mont Blanc, Omega and others, on the other hand localized their product with the same core value of luxury saw much success and increasing revenues. Many businesses had to learn a cruel lesson before adapting to the inevitable changes in their offerings, fast food chains like KFC, McDonalds, Starbucks and Dunkin’ donuts tampered their offerings and marketing campaign in order to popularize their products in the local market. Similarly it is vital for an expanding organization to have a globalized workforce and this need has started the war on talent fought by competition giant multinationals wanting to hire the best resources in the world. In order to win this war on talent sourcing the best talent is important although what’s more important is their bringing up in the organization so they can be effective managers with the ability to predict and respond to not only local but global challenges and ensuring the readiness of business and employees alike (Sadler-Smith, 2006, p.26). The implications of a globalized workforce on traditional Management Development programs and techniques are serious for these organizations and can result in a departure of talent if Management Development programs are not designed to cater the aspirations of these incumbents. With such circumstances it is necessary that learning and development activities and techniques should provide a competitive edge and made in to a core competency of the organization that can develop the workforce and develops them in other important core business areas (Sadler-Smith, 2006, p.24). The core competency of L&D should result in, Acquiring knowledge, skills and behaviours by employees that can result in maximizing return for shareholders and support all the stakeholders. Generic and easily transferable knowledge. Complex and customized to the needs of the organization, so the competitor cannot duplicate. Embeds innovativeness and inventiveness in employees, in order to face future challenges and provide solutions to increasing future needs and customer awareness. Organizations that have adopted L&D as their core competence exhibit certain acceptability towards change in external or internal environments and as a result a better more concrete solution or response is assembled. Their workforce is open to new technology and is highly skilled with empowerment and autonomy and willingness for learning. Leveraging technology, most businesses are now well equipped with advanced gadgets and operate in a knowledge economy that is reliant on technology, has a fast changing and global nature with uncertainty and multiple and varying challenges (Sadler-Smith, 2006, p.25). The important aspect for these organizations is to ready their Human Resources Department in such a way that they can fulfil the learning needs of the organization in an ever changing global market place. An organization that once had a conservative Management development program composed of a need assessment, Multi rater feedback, development centres, enhancement in competence, action based methods, executive coaching or mentoring need to adjust their L&D programs in order to inculcate and cater changes due to globalization of business and the need for a globalized workforce, resulting in development of leaders that can not only drive the organization in to the future with appropriate responses to challenges but also develop future leaders under them (Sadler-Smith, 2006, pp.213-252). The need for understanding the regulations and different market conditions prevalent in countries other than the origin country is vital for any organization’s success inspiring to cross borders and duplicating the same revenue collected in the origin market, hence incumbents with a narrow vision and less acceptability to change and a global environment may fail to adapt to the rapidly changing global environment (Sadler-Smith, 2006, p.24). Critical Analysis of Theories and Models of Management Development in global economy The learning and development practices defined in theories of sociology, economics and psychology complement the actual practices of L&D adopted by the organizations of today. While none of them provide a complete fit for management development practices they provide the basis on which the modern L&D techniques are designed and practiced. Similarly the need for preparing managers for a global economy may be helped by these theories but cannot provide a conclusive solution to the organizations (Sadler-Smith, 2006, pp.75-76). The major theories and learning models in this regard are behaviourists Theories of learning, Cognitive approach to learning, social learning theory, situated learning, andragogical model of learning, Experiential learning model and transfer of learning. Behaviourists Theories of Learning Classical behaviourist theories give importance to feedback and instances of learning by gauging positive and negative attitudes of the learner, a further reinforcement for learning to occur is essential in this theory although the approach is somewhat mechanic in nature as the focus is only towards behaviours exhibited by learners. These learners are considered as mechanical processors providing a desired output upon receiving appropriate inputs or commands, if the result matches the desired expectation the behaviour is appreciated while undesired outcomes are discouraged and learners are disciplined (Sadler-Smith, 2006, p.78). In the global learning context for management development, the theory is usable in order to encourage learners to exhibit desired attitudes although the modern learning and development techniques have gone beyond the strict approach of training or learning sessions and modern trainers or mentors tend to encourage participation from the learners making it a discussion based learning experience rather than a one sided communication that should result in desired outcomes. There are instances where passive participants are encouraged by using various techniques in the class room and learning acquired might reflect in their performance aspects although disciplining employees for not learning is not witnessed a lot in modern times. Cognitive Theory of Learning Cognitive theories of information processing investigate and build upon how human minds work in order to digest the provided information and store it in long term memory. Once knowledge is acquired by the learner, this knowledge will come in to action and result in better performance and enhanced decision making capabilities. The theory however does not take in to account the human factors, emotions or feelings that change with changing scenarios resulting in an inevitable influence on judgment and outcomes (Sadler-Smith, 2006, pp. 82-90). In the global context cognitive theory provides the basis on which modern practices can be built on, for example; informal learning sessions with many examples and case studies impact learners more and the outcomes and learning objectives are stored and processed well by the participant. Cognitive skills are essential for managers these days although much emphasis should be given to the human factors in order to understand the diverse workforce and changing situations in the prevailing culture of the country. Social Learning Theories Social learning theory expands on the idea given by the cognitive theorists, although the emphasis is on social interactions amongst the workforce and the learning they acquire by colleagues at work while socializing. It has immense importance for new incumbents being hired by an organization where they are required to adopt certain attitudes or behaviours that are acceptable by the organization, this learning is acquired through socialization and undesired attitudes are discouraged by the employees as a group while desired behaviours are recognized and appreciated (Sadler-Smith, 2006, pp.91-94). In the global context social learning theory is vital and a manager in order to develop multifaceted skills applicable to various cultures and social settings must participate in many social interactions and learn the effective techniques applicable to a particular culture or region. In order to become an effective global manager or a leader one must be open minded and should posses necessary social skills, learning comes from our surroundings with an accepting attitude a manager on job with less or no formal training or learning sessions learns through experience the need for particular skills required in these changing times. Situated Learning Model Situated learning sees learning as a social phenomenon where individuals learn by collaborating amongst themselves and any team activity or task becomes a learning instance. The idea of community learning or discussion based training sessions complimented by experiences and case studies is an example of situated learning where the trainer plays a role of facilitator and provides the conducive environment that encourages learning, participation and social interactions. Participants are given certain problems to solve and through a collective effort such problems are solved with critical thinking techniques and problem solving skills. This practice provides a great tool for management development as collaborating efforts and brain storming may result in solutions, innovativeness and inventiveness for a problem that has never occurred before (Sadler-Smith, 2006, pp. 95-96). The globalization phenomenon gave birth to a new set of problems and challenges, although a reference point from history was absent but leaders were able to tackle them by understanding the requirements of the situation and by using expertise of foreign consultants. Management development by brainstorming can yield effective results, for example a management summit on internal business organized within a multinational corporation for managers can reveal the best practices used to local managers in order to yield global results. Not many case studies or past knowledge would be available for unique and newer problems; a blank page is still the most challenging task for human beings hence the emphasis should be given to team work and brainstorming in order to develop an appropriate solution. Andragogical Model of Learning The andragogical model of learning suggests that self direction and experience plays a vital role in adult learning, it further emphasizes that adults may not learn for the sake of just learning. It is important that certain tangible or intangible rewards must be associated with learning, rewards such as appreciation that results in higher self esteem, recognition from peers resulting in a better social identity, improving quality of life, achieving a sense of purpose resulting in personal and professional fulfilment of goals. The problem with this approach is the alignment and matching goals of individual and organization; while extrinsic awards are appreciated by employees intrinsic ones may be ignored (Sadler-Smith, 2006, pp.98-101). In the global context self direction is still a rare commodity that can be bestowed upon the managers as it carries a certain risk although after learning and experience many multinationals provide their employees and leaders with autonomy to run their own business units, devise strategies and change their practices with changing times. Until recently training and development activities were seen by organizations as a cost and resulting behaviour from the employees was negligent towards these learning activities, new ways and change was resisted and traditions and past successes were elaborated upon excessively. With globalization and emphasis on change this traditional mind set has been put on back burner and the immense commercial success attained by expansions have opened up numerous opportunities for organizations and individuals. These wake of these expansions diligent leaders and managers see a tangible opportunity to enhance their personal and professional skills that may result in monetary gains, career enhancements, lucrative transfers to other regions hence a better lifestyle and a solid career ahead of them. The experiential learning model The experiential learning model focuses on the occurrence of learning as a result of experience and a set of conceptual and problem solving skills with entrepreneurial instinct of the learner. The model also emphasizes that difference amongst learners can play an active role in learning process, the model although has faced much criticism as the dependability on experience is unreliable, for example a wring practice coming through experience can occur in negative outcomes. Hence there is a need to facilitate the experiential learning process and structure it around positive attitudes and practices (Sadler-Smith, 2006, p.102-104). In the global context experience acquired in one setting cannot be similarly applicable on another one, it might come handy but a rationalization and customization may be necessarily required by the manager. An experienced professional like a fresh incumbent can make grave mistakes although what experience gives these managers is the hands on capability to resolve or rectify such mistakes and learn from the instance. An incumbent left alone on the mercy of experience cannot guarantee success and the experience must be complimented by factors such as job enrichment and training and development opportunities. The new global economy diversifies the challenges corporations face today, in order to develop its managers the old techniques must be utilized in a global context and enhancements should be made in traditional methodologies and theories of learning. A global manager in order to become a global leader must rely on its organization to provide management development programs that can teach them to value and utilize diversity in workforce, understand international business laws and regulations, adopt to changing environments and economic conditions, cross cultural management techniques, development of a lifelong learning attitude along with enhanced problem solving and business management skills. Formation of a Global Manager The global managers as ever before need to accomplish their business goals while benefiting from creativity, speed provided by technological advancements and factors that differ due to culture and locations. Team development is a necessary aspect for these global managers and each stage of team development must be emphasized on high performance with initiative, information sharing, problem solving skills, enhanced communication processes and managing uncertainty while understanding the effects of culture on each of these above variables (Sadler-Smith, 2006, p.48). They should know how to manage a dispersed workforce, contractors and suppliers by leveraging technology while forming relationships, setting goals with autonomy and assigned accountability. These managers must create conducive environment in order to form an innovative and inventive workforce, ensure cohesiveness and learn to deal with conflicts by understanding cultural norms of team members. Prepare the team for future challenges and design relevant processes for them while managing across distance, time zones and cultures (Sadler-Smith, 2006, p.25). The ideal management development program for a global manager should be a continuous effort where regional managers must meet or share their experiences regularly with each other through video conferencing or any other technological means (Sadler-Smith, 2006, p.131). There are practices that can promulgate and spread awareness about global practices, such learning and development techniques can be in form of rotational transfers from one place to another so the incumbent can not only understand diversity but also acquire knowledge of cross cultures, business environments, customer preferences and workforce behaviours. The initiation of the program should commence with a sourcing fresh talent from various parts of the world followed by discussion based training programs that can reflect the individual experiences and the view points on various cultures. After the initial training these incumbents can follow the same management development program designed for existing managers, upon a transfer or relocation these managers should consult and seek advice from incumbents who have spent at least two years in the target country. This one to one exercise should help these incumbents to avoid blind spots and slip ups during the work routine. Each relocated manager should submit in writing the experience he/she had in the relocated country and what practices in leading or managing people did he found most effective with prevailing market practices, customer preferences, weather, language, important places, taboos and other social or cultural aspects. Mentoring technique can also play a great role in bring the incumbent up to speed with the prevailing social norms and cultural aspects of the workforce along with inevitable business challenges and opportunities (Sadler-Smith, 2006, p.228). It is a fact that all managers are not leaders but by adopting the right development practices managers can become leaders, management education building individual capabilities, building management capability across organization and then across various regions (Sadler-Smith, 2006, p.216). A steady approach for promising individuals may comprise of a structure based on three levels micro, macro and global, at micro level emphasis should be given individual and management education and individual skills should be enhanced followed by an enhancement of managerial skills in organizational context. On the leadership level micro level techniques should emphasis on leadership development techniques followed by the organizational context. Similarly the third tier can be global level where managerial and leadership trainings and techniques should be used in order to assemble a global manager or a leader (Sadler-Smith, 2006, p.225). It is important to note that an organization composed of many nationalities and cultures responds well to globalization and expansion of business, as it already has a diversified workforce and social interactions with people coming from various backgrounds and cultures equip the managers to understand their preferences norms and personal values. Such management and leadership development programs must be followed up by 180 or 360 degree feedbacks, coaching and assessment sessions with implication on future career. Leadership development comes after management development and after exhausting all the possible improvements in systems, quality and process, the emphasis has shifted towards management development in order to develop future leadership force. The management programs should be geared towards providing skills related to technology use, consistent enhancement of global business acumen, latest techniques of global employee management, cultural differences, customer preferences in different regions, beliefs, basic language skills and advance employee management techniques that can ensure results after autonomy and delegation while discouraging biasness due to race, colour, creed or difference in beliefs. In order for such programs to be successful the organization must adopt a similar culture not only within regional offices but also in head quarters; a company that has a narrow conservative or bias approach in appointing, promoting and rewarding employees would not develop true global managers. In such cases preference would always be given to individuals who share the same nationality or race as company origin and the same phenomenon would be seen regularly in top, middle or lower managers. Hence the commitment of leadership is necessary for first developing and inculcating a supportive culture towards diversity and then efforts made by human resources for developing global managers would be successful (Sadler-Smith, 2006, p.252). Global leaders are doers and not preachers; they prove themselves first and then command others irrespective of the culture or beliefs of their followers, their character is seamless with a habit of sharing awards and developing others while on the way to achieving organizational objectives. Furthermore they believe in team work, creating future leaders for their organization and leaving a proud legacy behind them. Their workforce is engaged and empowered with a clear sense of direction and a passion for achieving results. Hence a global leader or a manager aspiring to be a global leader cannot work or achieve results in isolation, leading a workforce effectively and managing them with cohesiveness is the most important attribute in management development and such training or L&D techniques or activities would not be fruitful if an incumbent is not a capable individual with track record of success at individual and organizational level only afterwards global success would come (Sadler-Smith, 2006, p.234). Conclusion The management development program for global managers must encompass the same methodologies but with a global perspective; in doing so the organization must cherish diversity and acceptability in its workforce. In light of many theories and models discussed the most prominent and useful L&D technique is situated learning model where managers hailing from various countries can share their experiences resulting in a first hand learning which would make it easier for others to replicate if they are to manage a dispersed workforce or work in different country or region. An effective manager would be a good global manager per se although it is necessary for the incumbent to have a learning attitude with problem solving skills. The human resources department should design L&D programs that are composed of diversified participants and interaction between managers deputed at regional locations should be encouraged. Furthermore these global managers should benefit more if they give autonomy to their dispersed workforce while carrying out more social interactions through technological means and occasional travelling. The global landscape is rapidly changing and leaders with the ability of managing diversified people are few in numbers, this quality is scarce in managers although structured management programs with supporting activities and practices can develop the ability of these managers and make them a rare and cherished commodity for the coming future. References Sadler-Smith, E 2006, Learning and Development for Managers: Perspectives from Research and Practice, Wiley-Blackwell. Read More