I.T.E.S.M. |
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Professor D.J. Bava |
| Presented by |
Rosendo Flores
Margarita Sanchez
Claudia Terzi |
Typical Environment
International Environment
Global Organization
• • Has corporate units in a number of countries that are integrated to operate as one organization worldwide
• Moves people, especially key managers and professionals, throughout the world
• Individuals who speak several languages fluently are highly valued
• Global policies and activities are developed, but decentralization of decision making to subsidiary units and operations in other countries is necessary
Doing business globally requires considerations of four general factors
What are the key economic factors to understand in the international environment?
• Economic Development
• Infrastructure
• Resource and product markets
• Exchange rates
What are the key Legal-Political factors to understand in the international environment?
• Political Risk
• Political instability
• Laws and regulations
What type of challenges do managers have when managing in a foreign country?
Personal challenges
How can managers become effective on an international level?
Understanding own cultural values and assumptions-helps develop the sensitivity required to avoid making costly cultural blenders.
What are the key Socio-Cultural factors to understand in the international environment?
Cultural factors are more perplexing than political and economic factors in foreign countries. This is because culture is intangible, pervasive, and difficult to learn.
It is absolutely imperative that international companies comprehend the significance of local cultures and deal with them effectively.
International Aspects of Leadership and Management
• The core values that define the relationship between managers and
subordinates vary from country to country. People in countries with
strongly hierarchical relationships in organizations react better to
directive approaches. A direrective approach is more common in many
countries in Latin America, India, Hong Kong and France. Participative
approaches fit the values of countries such as Great Britain, Canada,
United States, Sweeden and Germany. Variations in cultures suggest to match
a leader's behavior to what the culture demands.
The Mexican Culture
• Workers in countries with authoritarian values expect their managers to
behave in an autocartic way. Mexico has been and still is an authoritarian
society in terms of schools, churches, businesses and families. Employers
seek workers who are agreeable, respectful and obedient, rather than innovative
and independent. Mexican businesses stress collectivisms, continuity,
cooperation, belongingness and formality. A meeting in Mexico among managers
and employees will most likely be a forum for directions rather than an opportunity
for the employees in the participation of decision making. Mexican workers desire
to be closely supervised, cared for and corrected.
• Mexico's abundant, low- cost, high- quality labor has made U.S. Firms locate
manufacturing facilities in Mexico. Despite low wages in Mexico, Mexicans
are acquiring a global reputation for quality work.
• Mexico is a much better place for business today than yesterday. There has
been significant political, social, and economic progress in Mexico. The Noprth
American Free Trade Agreement has spurred trade between the United States
and Mexico. There has been a substantial effort fighting the drug trade,
privatizing industry, reducing corruption, promoting democracy, and improving
the natural environment.
• Nevertheless, Mexico's government has much work to do. Nearly 80% of Mexico's wealth
rests among thirty families, about 20% of the population lives on a dollar per
day income,and 60% of Mexican workers take home less than $140 dollars per month.
Unemployment rates and interest rates are high, banks are reluctant to make loans
because of high consumer's delinquency rates, illegal immigration, and pollution
are still severe problems.
The Global Environment
• To successfully compete in world markets, managers must obtain better
knowledge of historical, cultural, and religious forces that drive people in other
contries.
• As the world becomes globalized in terms of economics, corporations can't afford
to remain culturally illiterate organizations.
• The solution lies in cultural management through an effort to bind the employee's
culture to that of the corporations.
• Socialization practices can also provide people with a consistent set of core
values that will remain the same from country to country.
• Managers who implement positive rewards to people's performance will most likely
get positive results in whatever country they exercise their leadership.
• Strategists have to understand the firm as a sociocultural system. Success is
determined by links between the organization's strategies and culture.
Some International Examples
• U.S. Managers are more action oriented than their counterparts in other parts of
the world, they rush to meetings and appointments with the feeling that the day
has been productive. They place a high priority on time, viewing time as an asset.
• For some foreign managers, resting, listening and meditating is considered highly
productive.
• U.S. Managers put a strong emphasis on short term results, making sometimes a
one- time sale. In marketing Japanese strive to achieve everlasting customers,
making of the first sale the beginning of the selling process.
• In Japan business relations operate within a context of group harmony and social
cohesion.
• In China business behavior revolves around personal relations.
• In Korea activities involve a concern for harmony on hierarchical relationships that
include obedience and authority.
• In Europe, farther north on the continent, the partcipation of employees in the
management style is more common. Most European workers enjoy more frequent
vacations than U.S. workers.
Planning, Considering the International Environment
• Planning is essential for an organization establishing the bridge between
the present and the future. Planning allows an oragnization to identify
advantages of external opportunities and minimize the impact of external threats.
• Planning allows an organization to adapt to changing markets. Historically
organizations that have not adapted to changing conditions have become extinct.
• It is highly important in a globalized world to be aware of cutural diversity.
Successful organizations strive to control their own destiny rather than merely
reacting to external forces.
• Organizational Culture is a pattern of behavior developed by an organization as it
learns to cope with external adaptation and internal integration. Organizational
Culture captures the subtle and sometimes largely onconscious forces that shape
an organization. Culture and strategy must work together.
• A significant contact between contrasting cultures accurs in the workplace. This
involves the ability of corporate management to deal with cultural diversity.
Bibliography
1. Human Resource Management; Robert L. Mathis.Thomson
2. Internet
3. Organizational Behavior; Joseph E. Champoux,Thomson, 2003
4. Strategic Management; Fred R. David, Prentice Hall, 2001
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