Global Leadership Development - Literature review Example

Global Leadership Development Name Date Introduction The world has grown to become a global village; this statement can be validated by the continued expansion of corporations and multi-international companies worldwide. It is for this reason why it is crucial to choose a capable leadership and management team to run a company. In order for a company to be effective in running a global business, the leadership role has to be occupied by a person not only has the traditional skills but also have vast knowledge, skills and a mindset that will drive them to navigate the challenges that come along with penetrating new international markets (McGregor and Hamm, 2008). Research has shown that in developing leadership; new global leaders need to be equipped by new skills and a number of experiences from different countries for them to be able to take up any challenges. Consequently, the management team and the workforce have to be sustainable to have a successful global company in the long run. Thus, this can be achieved by having a clear perspective of the theories surrounding the cultures and implicit nature of global leadership. In creating an effective global leadership strategy one refers back to four key concepts by Porter (1990). The four key concepts, which include: strategy, structure and rivalry; demand conditions; supply networks; and factor endowments, according to Porter (1990), assist in understanding the competitive nature of a country hence shaping the mindset of a global leader. Importance of Leadership Development from a Global Perspective According to a study by Dickman and Baruch (2003), developing effective global leadership requires an individual to think globally, appreciate cultural diversity, develop technological savvy, build partnerships and alliances; and share leadership. As derived from the above mentioned description of a global leader, it is therefore vital to develop a sustainable leadership role to suit the needs of a universal market. To match up to the global perspective, leaders from international companies, need to have a global leadership mindset. This has made it necessary for companies to consistently contribute to the growth of their leaders so as to reach the intended goal of attaining the global leadership mindset (Mendenhall et al, 2008). Mendenhall et al (2008), argue that global leadership mindset engages the vigilant assessment of three main global dynamics. Consequently, the assessment calls for the careful balancing of these three aspects from a global perspective. The three aspects include; Global Formalization Versus Local Flexibility- In satisfying the needs of a consumer, companies have continued to be successful by using more formal approaches that unify the leaders, management and staff members of a company in the eye’s of their customers. This strategic move has assisted these companies to reach potential customers globally. This is because, these companies successfully manage to introduce their new product in the international market by providing an overview of their brand to consumers and prepare them on what to expect, despite the perception of the same brand in the local market. For instance, it is quiet popular for different companies to create a similar product globally as equated to the local brand’s customs and expectations but with different packaging. Global Standardization Versus Local Customization- in creating a brand, companies normally implement customs and protocols that enable their brand to meet the needs and expectations of consumers locally based on the requirements created at this level. Therefore in meeting the target set by local customization, it is necessary to maintain flexibility during implementations in order to satisfy the international market. A good example comes in mind when it comes in creating a food product or drug. When it comes in implementing the customs and protocols of a food or drug product, the nature of implementation will vary depending on the nature of local regulatory controls. Regardless, of the different implementation strategies the safety of the consumer is always maintained on all levels. Global Dictate Versus Local Delegation- it is vital that the nature of conducting a business is consistent and the mode of local implementation should be dictated in accordance to already existing customs. For instance, during branding and customization of a product, the local regulatory customs will have a hand in dictating in which direction the brand is going to go and how the company should conduct its business activities without working against the rules. Global leadership mindset can be summarized as a company’s capability to account for the global needs of their consumers rather than solely focusing on the local market. A global leadership mindset has to be consistent in implementing its strategies to meet the global needs of consumers. This can be achieved by taking into consideration the views of different businesses and people and narrowing them down to meet specific demand of a country while paying closing attention to its culture (Gupta and Govindarajan, 2001). Fortune Magazine, describes McDonalds as one company that has consistently developed its leadership in regard to global perspectives. McDonalds has successfully managed to implement the three mentioned global aspects by empowering countries to reinvent their products and brands in order to satisfy their consumer needs in different parts of the world. For instance, McDonalds, according to Gumbel (2008), has permitted nations worldwide to invent their own buns, bags, and business practices. This is done in order to cater for the taste of locals in countries. Gumbel (2008) further explains that without such a balanced approach, most organizations fail to address local market needs effectively when penetrating the international market scene. According to Segil et al (2003), multi-dimensional approach is one of the most effective ways in which a company can develop and achieve effective global leadership. Further, Segil et al (2003), has narrowed these approaches to four different but closely related approaches. They include: 1. Education- entails exploring the subject globalization, cultures and leadership. Education covers the vast knowledge, content and skills that are tools for one to be effective in a global scenario. A wide range of information and data on the facts, cultures and business ethics governing a country which leaders need to be aware of are provided in this approach. Education equips a leader with powerful local information which range from customs and practices from a social and business context. Therefore for a leader to be a useful tool in a global business scenario, he or she has to be able to use the knowledge gathered and transfer it to other nations. 2. Examination- this approach calls for all leaders to have self awareness. It evaluates the interests, concerns and level of cultural literacy of an individual as a global leader. It is considered as one of the main and core factors that provide a person with a clear perspective of their strengths and weaknesses. As one of the steps in developing global leaders, examination, provides both leaders and potential leaders with a wider perspective of their knowledge and beliefs in order to push them in developing these areas. 3. Experience- it involves using the vast majority of knowledge, skills, ones strengths and weaknesses to focus on an organization and its objectives in order to acts towards fulfilling the aims of an organization. Experiences expect an individual to learn and gather enough data on how a business runs its activities in other parts of the world. This approach is argued to be the best teacher and a powerful tool that empowers a global leader to use relevant lessons learnt through experiences gathered and applies them to their field. 4. Exposure- this approach is closely relative to experience. It mainly requires a person to learn from people’s roles and use them as a reference point. In order to be able to incorporate different business ethics and dynamics appropriately, it is important for a global leader to have a mentor to guide them. Segil et al (2003) affirms that the four discussed leadership development strategies, offer cultural skills that create a competent and successful global executive. A global mindset and the development of an effective leadership that meets global needs are achieved by ensuring that a leader is equipped with resources and vast knowledge. Lack of adequate cultural knowledge is one of the main setbacks that come with developing global leadership and global mindset. As previously discussed an effective global leader has to have adequate knowledge about different countries globally in order for him or her to successful maintains that position and actually run a company. Additionally, the failure to treat an international market separate from the local market greatly contributes as a challenge for global leadership development. Thus it is important to implement a brand differently to suit a specific nation (Ewington et al, 2008). Identification of Potential Leaders and Recruitment International human resource management aim at identifying and working with potential global leaders and eventually recruiting them, this is made possible by developing global talent management programs and effectively coming up with ways to overcome the challenges arising from global talents. Scullion and Collings (2011), define global talent management as a the effective utilization of Human Resource tools, policies and practices in order to identify and manage a number of global talent challenges in a firm. Human Resource policies and practices include; location and relocation management, planning and forecasting as well as staffing. Additionally they ensure that workers in a company are working in alignment to achieving the set aims of a company. This is made possible by training and developing as well as evaluating employee’s consistent nature while taking into account their complaints and meets the regulatory requirements Scullion, 2011). Guthridge, Komm and Lawson (2008), argue that talent acquisition, retention and management have become one of the main challenges associated with global business. The competitive nature associated with the global environment has provided uncertain challenges associated with global talents. These challenges are evident when it comes to a strategic and high impact move by the human resource department which works around solving business issues and manage the company. The human resource team works as a group to keep track of how business is run and ensure that the right people with the right skills and technical knowhow are deployed in the right work station in the company and are motivated. According to Schuler et al (2011), global talent challenges arise not only due to the global competition but also as a result of hard economic and financial times that make it difficult to balance the work force with the needs of the firm. It is therefore evident that challenges that may face a firm when it comes to choosing the right work force to meet their expectations include; globalization, changing demographics, demand for workers with needed competencies and motivation, and the supply of those needed competencies and motivation (Beechler and Woodward, 2009; Scullion and Collings, 2011). Therefore in order for a firm to benefit from these challenges the Human resource team has to take conceptualize on their policies and practices. Global talent challenges are shaped as a result of several global issues that affect numerous human resource policies and practices that are used as a tool in managing global talent initiatives. These global issues directly or indirectly influence the human resource on recruiting, allocating and maintaining labor force (Bricoe et al, 2009). These forces include; 1. Globalization in terms of different wages and market segment, competition and varying customer care needs. 2. The demand and supply of credible workers with competencies and motivation. 3. Demographics, this describes the population size, developing and emerging economies of scale. Cross Cultural Training and Development Cross cultural training and development is an effective way to penetrate the global market (Forster, 2000). Cross cultural training seeks to create interpersonal relationships between companies or staff members in a company thus creating a linear communication framework. Therefore, where a common cultural backbone fails to come in play, cross cultural training focuses at developing awareness between individuals by fostering effective communication and much better relationships. Foster 2000, affirm that a vigilant selection and cross cultural training minimizes any form of adjustment problems which are likely to arise in a foreign company. Mendenhall et al (1985), discusses three skills which are explained as the tools for one to succeed in a cross cultural setting. They include; 1. The self dimension- these refer to individual skills that will equip them to be assertive by being able to manage their physical, mental and psychological stresses in a foreign environment. According to Bandura (1997), it is important for an expatriate working in a foreign country be able to deal with the realities of living and working in a foreign land. This Mendenhall et al (1985), affirms to be an effective way to conquer new experiences and come to terms with uncertainty. When one is self effective he or she becomes a determined and persistent individual who is able to adjust to new environments quickly. 2. The relationship dimension This dimension encompasses a number of skills and knowledge of once surroundings. The knowledge and skills gained by an expatriate empowers one to be in a position to easily with their host nations. Mendenhall et al (1985), asserts that having relational skills will decrease any form of anxiety arising from uncertain environments or new work ethics. 3. The perception dimension This includes cognitive skills that assist an individual in knowing what is acceptable or morally wrong in a given nation. For instance individuals working in the UAE are forced to work under varying moral codes which might have been acceptable in their own nations. Moreover before working in a country like the UAE, one has to have a clear understanding of what is morally acceptable or inappropriate. Therefore, cross cultural trainings, assist expatriates in enhancing their knowledge and skills about their host country, which in turn assists this person in working to become a productive individual in the given nation (Brewster and Pickard, 1994; Kealey and Protheroe, 1996; Harris and Brewster 1999). As a tool to enhance interpersonal relationships, cross cultural training has given rise to many advantages to both an individual and organizations (Luthans and Doh, 2009). Some of the four main advantages one would consider include; 1. Building confidence. This tool encourages confidence among workers and their organizations. This is because through these trainings, a person or a team are in a better position to overcome any difficult challenges that might have previously been presumed as ‘easier said than done’ in the work place. 2. Break down barriers. Some of the setbacks that come with working in a foreign nation include, prejudice, preconceptions and stereotypes which act as a barrier that hold workers and an organization back. Thus, cross cultural training, gives individuals an opportunity to learn about another culture hence demystifies them through cultural presentation from an objective angle. 3. Motivate. Cross cultural training act as an eye opener whereby people are able to see the roles they play with an organization more clearly and with an open mind. This motivates people as they are able to self analyze themselves thus enabling them to recognize their strengths and weaknesses and are reenergized to develop and grow individually and in their field of work. 4. Career development. Cross cultural training is an opportunity for an individual to grow socially and economically. Through the interaction of other people and environments, a person’s skills grow tremendously which can lead to future employment opportunities. Possessing this form of training enables a person to have a competitive edge as opposed to their counter parts. This is becomes a winning opportunity for a person possessing skills as a result of cross cultural training hence they are in a better position to work in international companies and with multi-cultural staff base. Cross cultural training enable high performance individuals to enhance development globally through acquiring the right experiences that come in handy when solving international assignments and culture training programs (Luthans and Doh, 2009). Standardization and localization of development. According to Luthans and Doh (2003), International Human Resource Management practices are posed with the biggest threat when it comes to cultural differences. In a cross cultural management research conducted by Hofstede (1980), the author conquered with this statement arguing that there are four power dimensions. They include; the degree of status inequality also referred to as power distance, the degree of interconnectedness of individual to tight social grouping this is termed as individualism collectivism, the degree of risk aversion referred to as uncertainty avoidance and masculinity feminity which is the degree of dominance of traditionally masculine values and gender differences in a society (Lunnan and Traavik, 2009). Lunnan and Traavik (2009) poses China as a good example for standardization and localization development. Lunnan and Traavik (2009), asserts that Standard Chartered Bank in China as one of its emerging markets, has faced a lot of challenges as there is competition when it comes to outsource for talented competent workers in the banking industry. Lunnan and Traavik (2009), argue that culture differences not only affect certain human resource bodies but also standardization and localization decisions. Conclusion Global leadership development and global mindset continue to hold an essential position when it comes down to the performance management requirements for organizations from a global perspective. International organizations are focused on acquiring talented, competent and experienced individuals to execute a business plan or strategy. Multinational corporations, have an advantage when it comes to having the best work force since they are in a better position to attract and retain this pool of workers. Luthans and Doh (2009), argues that in order for the global market to maintain a competitive edge it is important for organizations to be continuous and sustainable. Additionally it is worth noting that leadership, performance, management and culture directly influence the main components of HR management (Briscoe et al, 2009). Thus it is important that HR managers are open to opinions from staff members when considering which strategies to implement and how effective they will be in a given cultural context in regards to individuals open mindedness to adapt to new environments and accept new experiences. References Bandura, A. (1997). Self-efficacy: the exercise of control, Freeman: New York, NY. Beechler, S. & Woodward, I. C. (2009). Global talent management. Journal of International Management, 15: 273-285. Brewster, C., & Pickard, J. (1994). Evaluating expatriate training. International Studies of Management & Organization, 18-35. Briscoe, D., Schuler, R. S. & Claus, L. (2009). International Human Resource Management 3e. London: Routledge. Dickmann, M. & Baruch, Y. (2011) Global career management. London: Routledge. Ewington, N., Lowe, R., & Trickey, D. (2008), Being International. International Management Development, London: Worldwork Ltd. Forster, N. 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Boston: Harvard Business School Press. Schuler, R. S., Jackson, S. E., & Tarique, I. (2011). Framework for Global Talent Challenges: HR Actions of Global Talent Management. In Scullion, H. and Collings, D. Global Talent Management. London: Routledge. Scullion, H. & Collings, D. (2011). Global Talent Management. London: Routledge. Segil, L., Goldsmith, M., & Belasco, J. (2003), Partnering: The New Face of Leadership, New York, NY: AMACOM. Read More