Global Leadership Skills - Case Study Example

Table of Contents Introduction 2 Globalization 2 Skills required for a successful global leader 3 Competencies required for a successful global leader 4 Global leadership in McDonalds 5 Personal Development Plan 7 Conclusion 8 References 9 Introduction The last few decades have witnessed a complete change in the manner the domestic market works. The competition level in the market has undergone changes and investors have to think differently so that they become successful at the global level. While working in an international arena the different variables and factors undergo change which needs to be considered while looking to take decisions. The pace at which the global markets is changing has highlighted the fact that the month old strategies cannot provide the same returns and the business has to bring a change in the manner the business is carried out. The business needs to develop plans where better cultural integration takes place and the leader is able to develop a single team where people have a common goal and look towards functioning for the long term objectives. This report looks to evaluate the manner in which leaders needs to consider different factors while working in the international arena. It will also look towards developing a personal development plan by highlighting the manner in which different variables impact an organization like McDonalds. The report will also throw light on the different contextual issues and will thereby bring forward the strategies which needs to be formulated and changes which have to be accounted for so that better use of resources becomes possible and the organization is able to achieve their goals. This will help to formulate better strategies and will highlight the key aspect and areas through which the overall performance will shaped up and the organization will be able to perform better on a global arena. Globalization Bhagwati (2004) has defined globalization as one where integration of a national economy takes place with another economy and accounts for trade, foreign direct capital, migration and use of technology and resources. To deal with the issues that globalization presents managers and leaders have to carry out the additional role of ensuring that the change towards transition takes place smoothly. Pucik & Saba (1998) has identified two important concepts which deal with the issue of human resource management. One is using the services of expatriate managers whose duty is to carry out the international assignment across different countries. The second is having globalized managers who works across different cultures and cross functional boundaries so that a team can be developed which will include all people together so that the different functions can be easily carried out. Skills required for a successful global leader Executives have to face the issue of demonstrating the required skills which will help them to come together and ensure better use of resources so that the goals can be achieved. Khan (2007) has identified that a successful global leader has to demonstrate skills like cultural sensitivity, diversity management, adaptability and innovation, profitability and productivity management, continuity. This will require that the person understand different aspects like understanding the culture which is prevalent in the areas they are working, employing people who come from different diverse background, keeping pace with the changes and developments which are taking place, avoiding losses and finding ways for continuous growth and survival. This will help to develop a culture through which the different aspect and requirements of a cultural team will be looked at and will help to develop the required skills which will ensure better performance at a global level. Peters & Gitsam (2005) has stated that 76% of the executives feel that understanding and ensuring better cultural integration provides a path through which different challenges and opportunities are dealt in the best possible manner. This helps to multiply the effectiveness of team formation and creates the required path through which use of resources improves. The formation and development of team has to be matched by the fact that scarcity of resource, financial condition and overall business environment needs to be considered so that a framework through which better use of resources will become possible can be ensured. This is crucial as it will help to develop a team where better cultural integration takes place and understating the cultural needs and developing a team based on it will fetch maximum returns and multiply the effectiveness through which decisions are taken. Competencies needed for a global leader Bartlett & Ghostal (2003) has stated that a personal development plan for a global leader needs to demonstrate four competencies which are cultural, political, international system and the knowledge about technology. To ensure cultural competency the leader must understand his own culture and also understand the culture of others and appreciate the culture that each individual have. This at times creates dilemma which a leader has to deal with as working in a multicultural environment will make it difficult to decide whether the person should take decisions based on the working style of the parent organization or should take decisions based on the local needs. This will require proper analysis of cultural requirements and finding out a method through which better decisions can be taken and the different cultural requirements are better achieved. To ensure political competency it is imperative that the leader understands the geographic and economic implications which the political actions will create. It is important that the leader understand the government structure and decision making process so that working across national boundaries becomes easy and the leader is able to develop policies which will integrate the organization better. The global leader also should have the required knowledge with regard to the use of technology and should be in a position through which the leader is able to develop positive relationship through the use of technology. The process should be such that using technology helps to strengthen the process of carrying out activities and provides the required directives through which the business is able to achieve better results. Global leadership in McDonalds McDonalds is a global fast service provider which has more than 32,000 outlets across 117 countries and serve more than 60 million people daily. The organization has over 28,000 employees and the ability of the managers and leaders to make changes in the business process has enabled them to be successful at the highest level. The ability of the organization to understand the different cultural requirements and focus on the functional areas which has helped them to provide quality products to its customers has enabled them to be successful at the highest level. McDonalds has worked on different aspect and areas like cultural competency, political competency, international competency, and use of information technology to develop its leaders so that they are capable of performing at the highest level. Having the different competencies and creating a process through which better effectiveness is achieved has induced an advantage and provided an opportunity through which better use of resources have become possible. McDonalds has looked at achieving cultural competency by ensuring proper integration of culture. McDonalds due its presence over different part of the globe has been able to identify the different cultural needs and based on it has transformed their business so that better effectiveness can be achieved. To ensure that people are able to deal with the diverse cultural requirements training is provided. More and more people are sent to different international destination to get the required training so that they are able to perform at the highest level. This helps to provide an opportunity where people are provided the required guidance and knowledge through which better opportunities to know about the different culture is identified. This has helped McDonalds to develop global leaders who have the required skills and are able to work in different environment through which better productivity has been achieved. McDonalds has a high performance culture which is matched by talented employees capable of carrying out the different functions in the most effective manner. To ensure that the employees are able to achieve better cultural knowledge different tools have been designed and provided, knowledge transfer has been provided which has helped leaders to ensure a high level of business performance. Managers also undergo a comprehensive training program where they are provided the required skills through which cultural differences can be handled in the most effective manner. McDonalds has also ensured that political competencies are achieved as the business looks to mould and change its process based on the country where they are looking to perform. This has become possible as the managers are in a position and have complete and full knowledge regarding the manner in which knowledge transfer takes place and understands the overall political situation better. The company has further ensured that they have clear rules and policies with regard to different public issues. The organization refrains from entering into unethical ways and looks to uphold the integrity of the organization by developing ways through which better results are achieved. The political environment where McDonalds work have an impact on their operations. Prasanna & Rathore (2008) stated that McDonalds have developed the required competency among the employees through which they are able to understand and identify the different issues through which better results will be achieved. This has helped them to adhere to the legal requirements and has developed a framework through which McDonalds are able to make changes in the manner activities are carried out. McDonalds has ensured international competency among its managers by ensuring that they develop business adopts the right model as seen from the places where the restaurants are located. Choosing the right location shows competency by managers as they are able to collect the right fees and other taxes correctly. Having international competency and matching the restaurants with international standards have provided an opportunity where managers are able to develop their required skills and develop a framework through which the use of resources has improved. McDonalds have been further able to ensure that they use information technology in the best possible manner. The organization has integrated technology in such a manner with their cultural requirements which has helped them to understand culture in a better way. Having the required infrastructure through which the required infrastructure is developed which looks towards strengthening the overall process of carrying out activities has helped McDonalds to develop managers capable of handling the different roles. Personal Development Plan The identification of different global leadership skills which is required to be able to perform at the global level shows identification of four competencies which are cultural, political, international system and the knowledge about technology. This will require that the person understand different aspects like understanding the culture which is prevalent in the areas they are working, employing people who come from different diverse background, keeping pace with the changes and developments which are taking place, avoiding losses and finding ways for continuous growth and survival. This will help to develop a culture through which the different aspect and requirements of a cultural team will be looked at and will help to develop the required skills which will ensure better performance at a global level. Identifying and working on the different aspects which are required for a global leader helps to ensure that skills and competencies needs to be developed so that the person is capable of performing at all levels. This will require further understanding of the different issues and developing a framework through which the different needs will be easily met. Conclusion The report thereby evaluates the manner in which leaders needs to consider different factors while working in the international arena. It will also look towards developing a personal development plan by highlighting the manner in which different variables impact an organization like McDonalds. The report will also throw light on the different contextual issues and will thereby bring forward the strategies which needs to be formulated and changes which have to be accounted for so that better use of resources becomes possible and the organization is able to achieve their goals. This will help to formulate better strategies and will highlight the key aspect and areas through which the overall performance will shaped up and the organization will be able to perform better on a global arena References Bhagwati, J. (2004). In Defense of Globalization Oxford, New York: Oxford University Bartlett, C. A. & Ghoshal, S. (2003) "What is a global manager?" Harvard Business Review Khan, A. (2007) "Global Leadership Skills," Retrieved on March 25, 2014 from http://www.greatmanagement.org/articles/40/1/Global-Leadership-Skills/Page1.html Pucik, V. & Saba, T. (1998) "Selecting and developing the global versus the expatriate manager: a review of the state-of-the-art" Human Resource Planning Peters, K. and Gitsham, M. (2005)"Leadership skills for the 21st Century" Global Study Magazine Prasanna, S. & Rathore, S. "McDonald's in Russia" Retrieved on March 25, 2014 from http://www.ibscdc.org/Case_Studies/Strategy/Going%20Global%20and%20Managing%20Global%20Businesses/GGL0044.htm Read More