TRENDS
AND CHALLENGES OF
MANAGEMENT IN GLOBAL SCENARIO
The
management functions are planning and decision making, organizing. leading, and
controlling — are just as relevant to international managers as to domestic
managers. International managers need to have a clear view of where they want
their firm to be in the future; they have to organize to implement their plans:
they have to motivate those who work lot them; and they have to develop appropriate
control mechanisms.
a) Planning and Decision Making in a Global
Scenario
To
effectively plan and make decisions in a global economy, managers must have a
broad-based understanding of both environmental issues and competitive issues.
They need to understand local market conditions and technological factor that
will affect their operations. At the corporate level, executives need a great
deal of information to function effectively. Which markets are growing? Which
markets are shrinking? Which are our domestic and foreign competitors doing in
each market? They must also make a variety of strategic decisions about their
organizations. For example, if a firm wishes to enter market in France, should
it buy a local firm there, build a plant, or seek a strategic alliance?
Critical issues include understanding environmental circumstances, the role of
goals and planning in a global organization, and how decision making affects
the global organization.
b) Organizing in a Global Scenario
Managers
in international businesses must also attend to a variety of organizing issues.
For example, General Electric has operations scattered around the globe.The
firm has made the decision to give local managers a great deal of
responsibility for how they run their business. In contrast, many Japanese
firms give managers of their foreign operations relatively little
responsibility. As a result, those managers must frequently travel back to
Japan to present problems or get decisions approved. Managers in an
international business must address the basic issues of organization structure
and design, managing change, and dealing with human resources.
c) Leading in a Global Scenario
We noted earlier some of the cultural factors that affect international
organizations. Individual managers must be prepared to deal with these and
other factors as they interact people from different cultural backgrounds
.Supervising a group of five managers, each of whom is from a different state
in the United States, is likely to be much simpler than supervising a group of
five managers, each of whom is from a different culture. Managers must
understand how cultural factors affect individuals. How motivational processes
vary across cultures, how the role of leadership changes in different cultures,
how communication varies across cultures, and how interpersonal and group
processes depend on cultural background.
d) Controlling in a Global Scenario
Finally, managers in international organizations must also be concerned
with control. Distances, time zone differences, and cultural factors also play
a role in control. For example, in some cultures, close supervision is seen as
being appropriate, whereas in other cultures, it is not Like-wise, executives
in the United States and Japan may find it difficult to communicate vital
information to one another because of the time zone differences. Basic control
issues for the international manager revolve around operations management
productivity, quality, technology and information systems.
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