Qualities of an Effective International Manager - Coursework Example

Qualities of an Effective International Manager Introduction Success in international business is mainly based on both structural and strategic factors. Businesses that intend to do well in the global framework, therefore, have to ensure that all systems are well coordinated and functioning within and outside the organisation. Stiff competition is one of the features that characterise international business and only those entities that have the right strategies and plans in place can gain competitive advantage over others. One arguable aspect is the role that organisational management plays in devising strategies and overseeing their implementation as well as making critical decisions that can either derail or propel an organisation towards meeting its goals and objectives. Managers are, therefore, tasked with spearheading organisations through well-constructed stratagems and approaches that are all aimed at ensuring the mission and vision of the firm are practically achieved (Helpman, 2011: 123). Effective management is essential for any international business that anticipates long-term success in the global arena. Researchers have related skills such as adaptability, open-mindedness, flexibility, mastery of foreign language and ability to easily befriend foreign business partners with effective international management. This paper seeks to critically analyse how the aforementioned factors promote effective international management. This will be done through review of empirical literature as well as case study evaluation in order to present evidence that supports the conclusion. Definition of Terms In order to have an accurate understanding of the key words and phrases, it is necessary that they be defined and explained contextually. This is because these words may be used in a different setting to mean something else. International ‘International’ in this context means an activity that goes beyond the borders of a single nation. For example, international businesses are those that operate across many nations. Management This is the process of coordinating and arranging different undertakings within a particular organisation so as to hit predetermined target; either long-term or short-term. Business management is interested in coordinating actions so as to meet the set goals and objectives (Kowch, 2013: 109). Adaptability This is the capability to adjust to a particular environment or situation on which there is probably limited experience. For example, when a business manager is transferred to a different region that has a totally diverse culture, it is their capacity to adapt that will see them excel. Open-mindedness This is the ‘thinking outside the box’ feature that requires a person to consider a diverse range of perspectives before they finally make a decision. The decisions made by open-minded people are well informed and all-inclusive. Flexibility Literally the word means ‘capable of being bent’. In application, it is the ability of one to dynamically respond to a situation or demand based on its provision. It is not about being stuck to one way of reacting to a situation. It involves changing with the changing times. Literature Review The need to succeed in the international business framework is a concern that has got so many businesses executives thinking and raking their brains. It puzzles to find out what exactly makes a good international manager; a person who can drive the business into its destinations of success. This is the reason that has since prompted many researchers into conducting various studies to determine some reasons that could account for effective management at the global business arena. Among the studies that have done include finding out the connection between personal capabilities and characteristics of a manager to effective management. Most of the studies that have sought to answer this question have been founded on the assumption that certain qualities of an international manager predispose them to success and effective management. A study conducted Downes, Varner and Hemmasi, (2010: 238) based on the hypothesis that easily adaptable managers have high chances of delivering effective management revealed that it indeed, the faster the manager is able to adjust the more effective their management is outcome felt. This study proved though the data collected that companies that do well in the international contexts are driven by well-adaptable managers. Wippl and D'Andrea (2014:810) further supported this position with the study in which a sample of international managers was evaluated through case study. The results showed that out of ten managers, seven were found to have a great sense of adaptability. The seven expatriates were found to have had an extensive experience that had set them for easy adaptation. In this study, other factors such as age among others were also found to be influencing the level of adaption. In contrast, a study conducted by Olsen and Martins (2009: 315) about the relationship between adaptability and management effectiveness found out that the formers contributes just a little to the outcome of the latter. This was reached at after a large percentage of the managers assessed were found to have little adaptability yet they had driven their businesses to extremely new heights in the first term of their offices. Effective management was thus attributed to other factors such as company’s support, organisational structure, and nature of international industry among others. This perspective was also supported by the findings made by Doherty, Richardson, and Thorn (2013: 8) in which it was determined that there are many more factors that grossly contribute to effective international management other than just adaptability. These researchers discussed that effective management is more of situation-based dependent outcome than personality-based. It, therefore, implies that managers are more likely to deliver effectively if they have the right environment and good support network that when they are left to adjust on their own. Studies concerning foreign language mastery and its effect on international management have also been extensively explored. Johnson, Lenartowicz and Apud (2006:525) found out that the ability to easily learn and grasp a new language is the fundamental basis of international business success. According to Burke (2006: 65), this ability is vital because in as much as there are common language such as English that business partners can use to communicate, speaking in another person’s native language brings a sense of belonging and the manager stands great chances of winning their’ bids’ in whatever capacity they are acting. Kim and McLean (2012:581) found out that the relationship between the employees and the international manager is greatly enhanced when the ‘foreigner’ speaks in a local language. Schuler and Tarique (2007:730) highlight that loyalty and respect to the manager by the junior employee go up when they (local employees) realise their boss understands them since they speak the same language. The influence of social relationships on effective management has as well received substantial consideration with many researches attempting to connect the ability to easily make friends with success in management practice. Shaffer et al. (2006:115) argue that managers who are outgoing, sociable and with extroverted personality are more likely to offer effective management in an international forum than those who have the opposite. A study conducted by Geerlings and Veen, (2006: 1260) on the personality type of successful international managers demonstrated that more than three quarter of them were extroverts. Kowch (2013: 162) explains that the ability to easily make friends would not only improve the relationship the manager has with the employees and junior staffs below them but also with other stakeholders whose contribution is very much needed for the effective management of the organisation to be achieved. According to Fernandez & Underwood (2006: 108), global business is a dynamic area that constantly changes. As Punnett (2013: 140) puts it, international market is fast changing and what was, therefore, yesterday might never be tomorrow. Organisations, therefore, have to keep track and get updated with the changes and the technological advancements. Andresen, Biemann and Pattie (2012:932-935) revealed that good managers are made of men and women who are flexible and can fast adjust with the changes that come along. Gilmore and Williams (2009: 121) claim that international business is not like a home-based market where probably the industry is monopolised by one company that receives no competition that would force it to consider innovation. Dowling, Festing & Engle (2008: 148) argue that, from the outcome of their study, effective managers are those that can detect the changes fast and adopt new and sophisticated methodological approaches to solving any problem a specific problem that the business is facing. Harzing & Pinnington (2010: 100) assert that it is the elasticity that a manager has that would ensure that every problem is handled in a unique rather than sticking to only one way. Relationship between Effective International Management and Adaptability, Flexibility, Open-mindedness, Sociability and Foreign Language Mastery As revealed in the literature review, factors such as adaptability, flexibility, open-mindedness have been found to influence international management. Some studies have sought to disagree with some of these factors as contributors to effective management Adaptability One issue that is thought of when the international business is mentioned is the change of environment. It is not just change of the physical environment but also the emotional/ psychological as well as the social environment. This implies that if one is to successfully work and meet their objectives in the international business then they must first prepare themselves to these changes. At times time is so short for a person to prepare. It is the person’s unique adaptability that would make them quickly absorb the culture shock and adjust to the new social setting. The same way, business managers who work at a global scale must be adaptable enough to be posted in almost any region or part of this world. Change of culture and integrating into a whole new system is a real challenge that international managers are likely to face and only those who quickly and suitably adapt to new environments can effective produce good results in such places (McFarlin and Sweeney, 2011: 91). According to Burke (2006:112), personal challenges such as language culture, lifestyle, physicality and other that an international manager faces can be a big hindrance to their management practice. They will need quite some time to get oriented to a particular culture in the native land. Also, if they fail to detach themselves from their native culture and countries of origin, they end up missing their place to an extent that they cannot concentrate on their new work stations. As previously noted, some business may be opened in nations that experience different challenges and only those resilient and versatile managers are able to stand strong in their operations amidst the problems. For example, Clifford Chance, an international law firm based in Saudi Arabia is a relevant case study. Managed by two foreigners, the company is a leading law firm in the country because of the quick adaptability that the managers have due to the fact that they are all from the West. Working in the Middle East and emerging top is obviously an achievement. Open-mindedness The principle of open-mindedness calls for sensitivity to germane issues around an individual such as culture, law, ethical and moral standards as well as being open to diverse viewpoints. International business managers can only be effective in the duties if they are keen to these factors while they make their decisions. As shown in the empirical studies, the approach and decisions of an international manager should be based on an integrated set of information (Punnett, 2013: 99). International business requires expatriates to make certain critical decisions that have balanced consequences such that the organisation’s interest is taken care of and at the same time the social responsibilities are considered. A blind move that is not critically thought and single-perceptively constructed can lead erred outcomes that would work against the management. Effective management, therefore, is achieved when the manager is a creative thinker who can looks at every edge of a problem before making a decision (Hall, 2008:99). An instance of a multinational organisation that has showed great open-mindedness is McDonald; a fast food chain store. The company is spread in 119 countries of the world and has existed for extremely long period of time. McDonald’s management team have showed open-mindedness in the tact they use to sensitively serve their customers from different cultures. Although the company’s headquarter is in the United States, the managers broadcasted across the world have integrated the customers in a way that one would think it is ‘single family’ customer base. The great sensitivity the company has towards its stakeholders is incredible and this accounts for its remarkable success in the global market. Flexibility As described, this is the ability to change with the new waves. Successful international business managers are bent. Warren Buffet when performing his managerial duties admitted that indeed he would allow change to sometimes sway him towards a different direction. This is because of the realisation that one’s way might not be always right and opening up for new challenges works best. The global market is full of industrial players who are very much willing to explore and adventure the ‘Blue Seas’ so that they may find better ways of emerging with competitive advantages. This puts any international manager to be at per with the changing nature of the global business so they are not left behind. Flexibility to new approaches and advanced technology as well as culture and social activities are a prerequisite if effective management is to be achieved. Open-mindedness would go well with flexibility as the manager will consider other point views and flexibly implement the decisions made. Flexibility involves allow the ‘surprising’ occurrence or trend to change a manager into embrace what is projected to be beneficial. For example, if a government hosting the business passes certain laws affecting a business, it is for the management to ensure adherence (Fenerndez and Underwood, 2006: 101). Foreign Language Mastery Football managers who work in foreign countries have been seen to learn not just two but three or even more languages that can help them communicate well with their players and support staff. Jose Mourinho (Chelsea manager) and Arsene Wenger (Arsenal manager) are among those who have demonstrated that foreign language is a plus in management of a team in a foreign land. Language does not only act as a tag of identification but it also makes interaction easy. For example, the communication between the football manager and the team would be greatly hindered when the team is in a crisis and the coach want to give some advice to the team. The same way in a typical business, managers who speak in the same language are able to communicate well with their project team and offer advice to them more earnestly on what to do. Commonality in language also improves social interactions and the loyalty and love the manager would get can greatly stir up their motivational level. Consequently, deals would be easily struck with foreigners if the manager understands their language. There some business partners who would easily trade with people they speak the same language with. Sociability This aspect enables a person to make friends and socially interact with people with ease. It is an important element in international management as trust is key in business dealing with different companies at an international level. Expatriates who are able to build and win trust of people of different nationalities will definitely succeed. Making friendship with government (officials, ministers etc.) is a stepping stone to success in the international business. Friendship does not only go vertically as the international manager should be able to form solid professional relationship with the locals and the general community they serve. People tend to judge the company, especially the international ones, by the leaders or management. The friendlier the management the high loyalty the company will receive. For example, Bill Gate’s Microsoft Company is famous because of his (Bill Gate’s) personality. His willingness to help in the philanthropic projects has won many hearts (Gilmore and Williams, 2009: 118). Conclusion Conclusively, based on the reviewed literature and the critical analysis, it is accurate to claim that adaptability, flexibility, open mindedness, mastery of a foreign language as well as the ability to make friends from foreign countries are key to effective international management. As demonstrated, expatriates deal with diverse people that are from different cultures with social and cultural standards and activities totally different. An insight into the cross-cultural dynamics is essentially required and this can be achieved when the manager is open-minded and flexible to change. The research studies have shown that a change of environment needs someone who can easily adapt to a different environment for them to succeed. The issue of language as seen in successful football managers cannot be overlooked as it provides a way through which policies can be implemented and decisions deliberated. Finally, sociable and outgoing expatriates equally do well in the international business as they can easily win their stakeholders trust. However, the studies have shown there is a gap still in foreign language and managers who seek effectiveness in international framework should get classes where they can learn some basic local languages of the places they plan to work at. 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