How Cross-Cultural Training Helps Managers to Become Global Managers - Essay Example

How Cross Cultural Training Helps Managers to Become Global Managers Name: Roll No: Class: Teacher: Subject: March 13, 2008 University: Globalization- A Historical Perspective As a new buzzword, globalization is dominating globe since nineties of the previous century with the break-up of ex-Soviet Union and subsequent end of cold war. The frontiers of nations with improved dependence on market economy and transformed trust in the resources and capital being a process of structural alteration spurred by influences and studies of World Bank and different other International funding bodies have commenced in most of the developing countries. (Ben L and Ananda Mukherji, 1999) With the collapse of Soviet Union and the world found itself with just one superpower, it was the end of bipolar world. The question is that did that support or hinder globalization. In the political context the Cold War was in fact a globalizing experience. The year 1998 saw an end to the Cold War. Its end had dis-globalized the significant strategic value of some countries in a political sense. (Raghuram R. 2005) Even though the Cold War itself was considered a globalizing experience, on the economic frontier the Cold War created sold walls autonomous trade and the independent movement of capital between the sides of Iron Curtain. Certainly, communism not only in Soviet Union but also among different other members of Warsaw Pact was an ideology termed as protectionist which inhibited the vibrant forces of technological and economic exchange. To that particular extent the Cold War was considered hindrance in economic context to globalization- despite of being strategically and politically a motivation to globalization. Cold War can be termed as globalization-friendly in the scenario of politics but intimidating and hostile to globalization in the frontier of world economy. (Vijay g, and Anil K, 2001) Although the bipolar world had ended in the decade of 1990s, specific single nations or societies can still be viewed as a part of the global scene. Bipolar societies are those having two magnets or external poles that command the allegiance of diversified segments of the inner population. Northern Ireland since the decade of 1920s has been a society termed as bipolar. (Vi jay g, and Anil K, 2001) Globalization after the end of Cold War is mostly viewed as consisting of a process that ultimately is directed toward global interdependence and continuous rapidity of swap across vast distances. Although the concept of globalization is new, but the real processes leading toward exchange and interdependence commenced centuries ago. Some of the forces that support the concept of globalization are technology; empire; economy; and religion. The process of globalization in the history is highlighted by the voyages of exploration. Christopher Columbus and Vasco de Gama in the 15th century in fact opened up an entire new chapter of globalization. Empire and economy were the main motives. The migration of people represented by the Mayflower followed these expeditions. (Vijay g, and Anil K, 2001) The immigration of the Pilgrim Fathers was partly receptive to economic and religious imperatives. Demographic globalization reached it peculiar height in the continent of America with the arrival of millions of people from different other hemispheres. The United States, in time, became a microcosm of the world population- with huge immigrants from each and every society on the world. (Kealey , D.J and Protheroe D.R. 1996) The World Wars were also the manifestations of globalizations and it was 20th century that witnessed the explosive globalized warfare. While both World Wars were the most disparaging empirically the Cold War is considered as the most dangerous potentially. The final historical stage of globalization arrived when the industrial revolution was supported with new and innovative information revolution. Exchange and interdependence became computerized and by the time United States has become the most powerful and robust single country. (Ben L and Ananda Mukherji, 1999) Globalization and the Modern Culture Globalization can be defined as the decline of transaction cost of cross border movements of goods and capital thus of factors of production. It can also be defined as a process that not only comprises opening up of global trade, internationalization of financial markets, development of sophisticated means of communication, growing significance of multinational companies, population migrations and increased mobility of individuals, capital, goods, ideas and data but also diseases, pollution and infections. (Kealey , D.J and Protheroe D.R. 1996) As a part of liberalization in the global economies, significant measures along with specific globalization strategies have been initiated in the last decade that include abandoning of industrial licensing era, reducing a variety of areas reserved specifically for public sector, necessary amendments in the act of restrictive trade practices, initiation of privatization program, cut back in tariff rates and switching over to market driven exchange rates. A steady liberalization of existing account transactions has been witnesses along with more sectors attracting foreign direct investments. The portfolio investment is assisting entry of foreign direct investments in roads, ports, telecom, insurance, airports and different other major sectors. (Raghuram R. 2005) What is a Global Manager Managers in the today’s dynamic environment of business are recognizing the need to transform into global managers driven by a global perspective. A global perspective is supported by appropriated knowledge and skills. A global manager is a manager who possesses a variety of mindsets ranging from the nationally-oriented defender and continuing on to the controller, explorer and the globally-oriented assimilator. (Ben L and Ananda Mukherji, 1999) Rhinesmith (1993) stated in his book ‘A Manager’s guide to Globalization’ that the global manager is the facilitator of organizational and personal development around the globe-using new and innovative paradigms for the purpose of working together. The author suggests that due to cultural values and significance of pragmatism, liner thinking and accomplishment, North Americans had found it difficult in responding to the continuous change; the standard in the global business scenario. Global manager is placed by Rhinesmith at the hub of the challenges faced by organizations and states that in fact new comfort areas or zones are required for the global managers. (Rhinesmith, 1993) Skills Required by a Global Manager Globalization on a large scale is rendering conventional ways of performing business mostly irrelevant. The special skills required by global managers are: Global managers, in order to become more effective, should develop a particular mindset of an integrator. A global manager, with a distinctive mindset, facilitates meaningful global and multinational strategizing that necessitates managers to integrate effectively the three global strategies of: global business; worldwide functions; and country/regional pressures. A global vision of a manager transforms the organization’s process, structure, people and culture from a highly independent set of business units to one that could become an effective and integrated global network. (Ben L and Ananda Mukherji, 1999) Due to shifting of business focus from local environment to the global, the global managers have to continuously search for redefining their policies and strategies in order to realign their organizations to more complex and new global realities. Global managers- to express and implement a practical global strategy should develop the special skills to facilitate supportive processes through which they can mange globalization and create adequate conditions through which they can accomplish organizational effectiveness. Through cross cultural training the global manager can meet the challenges of corporate downsizing, economic dislocation and global competition that are considered as the new watchwords of international business. (Jusela, 1994) Emergence of New Global Leaders- A Transformation of Culture The World Bank, in an earlier report, had predicted that by the year 2020, based primarily on the parity of purchasing power, the five biggest economies would be the US, China, Indonesia, India and Japan that will displace France and Germany from the present ranking of top five. The economic reality along with its new and evolving players implies that present concepts should be reviewed and reconsidered seriously. (World Bank, 1992) The phenomenon of globalization is supported by four main globalization drivers. As such managers should be cognizant of the particular drivers. They are: Market Drivers: The per capita income is on a constant rise which has ultimately resulted in the enhanced purchasing power and ever-increased demand for products and services worldwide. A convergence has taken place in the tastes, expectations, aspirations and life styles of consumers. Cost Drivers: Lower production and manufacturing costs has resulted in economies of scale, accelerated innovations in technology, availability of labor costs at cheaper rates, and improved and modern ways of transportation which have become a significant element of cost drivers. Competitive Drivers: Globalization is affected by competitive drivers that are new competitors globally, increased global strategic alliances formation and countries continuously transforming into competitive battlegrounds. Government Drivers: It includes privatization on large scale, appearance of trading blocks and reduction in overall trade barriers. (Norhayati, Z, 2000) Better and larges access to the markets of developed countries along with transfer of technology sustain the promise of enhanced productivity and ultimately superior living standard. (Raghuram R. 2005) However, globalization tends to present innovative and new challenges like instability in financial markets, inequality among nations and environmental deteriorations. Another major and negative feature of globalization is a vast majority of developing nations remain detached from the process. (Kealey , D.J and Protheroe D.R. 1996) Up to the nineties of previous century, processes of globalizing most of the economies were confined by the barriers to investment and trade liberalization of investment and trade. Financial flows commenced in the last decade has gradually lowered the blockades to competition and accelerated the pace of globalization. (Kealey , D.J and Protheroe D.R. 1996) What is Cross Cultural Training Cross cultural training is facilitating the entire process of acculturation and ultimately developing the culture-general and culture-specific skills required to enhance the psychological and socio-cultural adjustments of expatriates and sojourners whenever a foreign culture is encountered. Cross cultural training supports managers to modify effectively the existing culture-specific and culture-general skills. Cross cultural training is continuously becoming an essential element in the international business scenario. (Kealey , D.J and Protheroe D.R. 1996) Heavy foreign direct investment and globalization, combined with restructuring of domestic resources have changed the workforce dramatically of many organizations. As the world is continuously becoming smaller people are increasingly squandering time living and working from their native country, giving an ultimate rise to face-to-face connection among people with a variety of cultural background. Globalization not only needs the cross-cultural perspective adoption for the purpose of accomplishing the goals successfully in the background of global economy- but higher and new selection standard, motivation of people and training is also required. Resultantly, cross-cultural training is rapidly becoming a significant element in the international business scenario. (Norhayati, Z, 1999) Cultural differences does not exist only at abroad and home but in most of the cases the interaction of international business forces creates complexities as people are divided by barriers such as language, food, geography, time and climate. Moreover values, perceptions, background and beliefs of people can also be distinctive. For example in the business background the anticipations for failure or success could differ that can be confusing and frustrating to global managers, the cultural differences impact international business is a variety of ways. Importance of Cross Cultural Training Cross cultural training is important in preparing managers to become global. International firms compete with each other extensively in the global market, the exigencies of cross cultural training for managers is becoming continuously important. Strong evidence had been discovered for a positive association between adjustment policies of organizations and cross-cultural training. (Black and Mendenhall, 1990) Cross cultural training can support global manager to accomplish; distinct benefit for the firms; means for conscious transformation from a home culture, automatic mode of international management to a culturally adaptable, appropriate and acceptable one; support to improve in confronting with unprecedented events in a new culture; ways of reducing doubts of interactions with distant and foreign nationals; and means of increasing coping skills of expatriates by reducing disorientation and stress. (Norhayati, Z, 1999) In some of the cultures, for example, Austrians, Swiss and Germans, the element of punctuality is considered tremendously significance and the factor of lateness is not tolerated. On the other hand in the countries of Latin America and other European nations a dissimilar concept of time exists allowing some tolerance for lateness. Global managers lacking the awareness or sensitivity of this time factor can make grave interpersonal blunders and need cross cultural training for the purpose of evading culture shock. (Norhayati, Z, 1999) Support of Cross Cultural Training to Become Global Managers Cross cultural training helps global managers to develop their competence in intercultural communication for the purpose of living productively and meaningfully in the today’s global village. The workforce in the today’s world is becoming diversified in culture; it has become significant to train managers for becoming skillful and competent in dealing effectively with the complications of different new environments. As such the cross cultural training of managers’ help them to develop competence in intercultural communication. Global manager must develop this essential competence for the purpose of becoming successful. For a manger to become global, the idea of cross cultural training has been supported for the long time. (Chen and Starosta, 1996) Organizations are continuously globalizing and the word globalization is most frequently used in narrating the corporate strategy of the decade of 1990s. Managers should look at the broader picture and strive to search for the new and innovative paradigms for working and living in global organizations. Organizations are deemed to change and for successful experience of change the global managers should be responsible for these changes and learn appropriately to manage systems instead of functions. (Garza, R.T. 1985) Cross Cultural Training to Develop Skills of Global Managers The competitive advantage for a global company is reliant upon the ability to coordinate vital resources and different information that exist across different geographical places. In the today’s word there are innumerable organizations systems that can be used by the global firms to integrate widespread operations. The most effective technique is to build and inculcate specific skill among global managers through cross cultural training. A team with individuals of different nationalities and working in a variety of business functions and cultures coordinate to some aspects of the international operation on a global basis. (Vijay G, and Anil K. 2001) Managers in global business mostly belong to diverse cultures and resultantly cultivate different norms, patterns, values and assumptions of behavior to the group. The need consensus believed vital in collectivistic cultures is a somewhat low concern in individualistic cultures. To explain this phenomenon consider global managers belong to highly individualistic cultures like Britain and United States while others are related to highly collectivistic cultures like Venezuela and Japan. Until and unless there exist some differences in beliefs and assumptions intrinsic in that assortment are explicitly tackled, the cohesiveness of this particular group is most likely to impede and suffer effectiveness. (Ward, C. and Kennedy, A. 1993) A higher degree of psychological and socio-cultural adjustment is required for global managers in experiencing proper cross cultural training that ultimately triggers behavioral and affective responses. These particular responses are the real basis of intercultural effective capabilities and as such enhance and improve the psychological adjustment. Cognitive training, on the other hand, should activate cognitive responses, particularly interpersonal skills and cultural awareness and enhance the overall socio-cultural adjustment. (Norhayati, Z, 1999) Conclusion Global markets are continuously taking gigantic advantages of a workforce that is diversified in nature. It is most common for the organizations to find cross-cultural team situated in multiple countries as global mangers come from different countries. so a person raised in Hong Kong, with a design team located in the United States with procurement teams in Mexico and Japan, and a drafting team in South Africa is not unusual. In historically monolithic types of market also, just as United States it is mostly usual to have cross-cultural teams confronting foreign completion. Moreover the pressure exerted on the organizations for reducing costs and increasing productivity is unrelenting. This leads specifically to an increasing need for training global managers of cross cultural awareness and techniques at multiple levels. Cross cultural paradigm is used to improve the skills of managers in international markets so they could be effective and influential in the fierce competition faced by the organizations. To conclude we can say the transfer of special knowledge and cross cultural training can develop richer awareness and sensitivity of other cultures- skills a global manager must possess. References Ben L. Kediaa and Ananda Mukherji. 1999. Global managers: developing a mindset for global competitiveness. The Robert Wang Center for International Business. University of Memphis, Memphis, TN 38152 USA Black J.S. and Mendenhall M. 1990. Cross-cultural training effectiveness: A review and a theoretical framework for future research. Academy of Management Review, Voly. 15 No. 1, pp, 113-36 Chen, G.M. and Starosta, W.J. 1996. Intercultural communication competence: a synthesis. Communication Yearbook. Vol, 19, Garza, R.T. 1985. Environmental influences and personnel choice; a humanistic perspective on acculturation. Hispanic Journal of Behavioral Sciences, Vol. 7, pp, 365-79 Jusela, G.E., 1994. Meeting the global competitive challenge: Building systems that learn on a large scale. International Journal of Human Research Management. December Kealey , D.J and Protheroe D.R. 1996. The effectiveness of cross-cultural training for expatriates; an assessment of the literature on the issue. International Journal of Intercultural Relations. Vol. 20 NO. 2, pp. 1541-65 Norhayati, Z, 2000. The effects of cross-cultural training on the acculturation process of the global workforce. International Journal of Manpower. Raghuram R. 2005. Hub for Globalization. Paper presented at Pravasi Bharati Divas Conference, New Delhi. Vijay g, and Anil K, 2001. Building an Effective Global Business Team. Management Review, Vol.42 . No. 4 Ward, C. and Kennedy, A. 1993. Psychological and socio-cultural adjustment during cross-cultural transitions; a comparison of secondary students at home and abroad. International Journal of Psychology, Vol. 28, pp. 129-47 Read More