GLOBAL MANAGERS :MYTH OR REALITY?

Report submitted by: VIRAJ C. TATKAR, MMS batch 2009-2011, SEM 1, Subject : PERSPECTIVE MANAGEMENT, Roll number: 54, Submitted to : PROF.QURESH M.MOOCHHALA Date of submission: 18th November 2009,

BURHANI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,MUMBAI

Acknowledgement

I would like to acknowledge a deep sense of gratitude to PROF.Q.M.MOOCHHALA for his valuable guidance as far as the subject matter and its presentation is concerned. I would also like to thank various authers whose work has served as a valuable reference material for developing the further understanding of the topic of global managers .I would also like to thank MR.HUSSAIN TANKIWALA for helping me to use e- resources effectively. At the end I would like to thank BURHANI INSTITUTE OF MANAGEMENT AND RESEARCH,MUMBAI and our director PROF .VIKRAM SHIKHARE for providing us the best possible educational facilities and environment to develop ourselves as tomorrows global business leaders ,in the bustling global business scenario.

CONTENTS:

1. 2. 3. 4.

ACKNOWLEDGEMENT EXECUTIVE SUMMARY CONTEXTUAL BACKGROUND LITERATURE REVIEW HYPOTHESIS

5. 6. 7.

OBSERVATIONS CONCLUSION BIBLIOGRAPHY

EXECUTIVE SUMMARY

With the continuing growth of globalization, companies need to pay careful attention to selecting and managing people who may become their global managers. The best way to achieve this is by coming up with a clear concept of what constitutes such a manager. But the examination of a wide set of possible characteristics indicates that there seems to be no distinct set of such individual qualities, so there is no consistent way to point out what a global manager is. What we are left with is the search for good conventional managers with a global mindset who could succeed in the international marketplace.(see bibliography:websites/no:5)

CONTEXTUAL BACKGROUND

Global management is the one in which an organization has operations in other parts of the countries and is managed in all parts of the world(bibliography/website/no.1) The profile of a global manager is not just looking at the global market but also the domestic market. And the ingredients which make a global manager are simple basics which are imbibed into us but lose their prominence. Awareness, exposure, comprehension, conviction and maturity are the qualities which make the global managers of today, said corporate(bibliography/websites/3) Globalization today means that a company is competing in the domestic market and protecting its turf from international players making an entry. Alternatively, it is the same company foraying into international market. So in essence, the trait of a global manager is as useful internationally as it is when it comes to the domestic market. A global manager is one who understands and recognizes the patterns. The manager is able to withstand the pressure and is sensitive to issues and lastly the family or social moorings also play an important role in making a good manager(bibliography/e database/proquest) The report is aimed to find out that what is a Global manager and is it myth or reality? To study is topic the method used is the comparison of opinions from various authors and reports from various journals in this context. The major emphasis is laid on understanding the process of globalization and responsibilities of managers handling international operations for a global company. An attempt is made to find out the responsibilities, and expectations from such managers and at the end an attempt is made to establish relationship between the term global manager and the term efficient manager with capability to handle his responsibilities in the diversified global environment.

WHAT DO YOU MEAN BY A GLOBAL COMPANY.? We take global to mean at least 20% of sales in each of the three main regions of the world: North America, Europe and a group of leading Asian countries. One of us was involved in

research involving the Fortune 500, and of those companies, 320 were home-based with only modest sales in the other two regions. Another 36 were 'bi-regional', with at least 20% of their sales in two of the three regions. Only nine companies were truly global, with at least 20% of their sales in all three regions. This is a picture of regionalization, not globalization (see The Myth of the Global Company, p34). How about a global mindset? Consider the 10 most senior executives in the most global company you can think of. How many of them come from, or at least have spent a significant part of their careers in a different country to that in which the company is headquartered? We note that there are pitifully few. Maybe Shell and Unilever stand out because their executives are rooted in two cultures. Perhaps this helps to explain the long-term success of these two companies. In any event, our point is that global coverage does not a global mindset make. We need to take a good hard look at the whole question of global and worldly. (bibliography/websites/no2)

So what makes a global manager?

Every country has its own needs, its own culture, the particular characteristics of its own people. Copying another style, especially one labelled falsely as universal or global, can only weaken people from one culture in competition with others. We all have to build on our own intrinsic strengths.

The profile of a global manager is not just looking at the global market but also the domestic market. And the ingredients which make a global manager are simple basics which are imbibed into us but lose their prominence. Awareness, exposure, comprehension, conviction and maturity are the qualities which make the global managers of today, said corporates. At the other end of the spectrum, management institutions need to constantly upgrade their knowledge and be sensitive to the changing environment to help create global managers.

R Gopalakrishnan, executive director, Tata Sons Ltd said that global managers are made not through inherent quality but ones which are acquired. There are three or four criteria which make global managers. They are the awareness of the world beyond your realm, need to gain exposure, comprehension of the fact that the information is relevant for me as well and conviction, said Mr Gopalakrishnan. Mr Arvind Agarwal, president - corporate development & HR, RPG Enterprises, said that there are business managers, country managers and functional managers, who have their own set of responsibilities. At the core of a global manager is personal maturity and the maturity comprises of discipline, focus, respect for the cultural differences, ability to manage own's growth in the highly competitive atmosphere and emotional intelligence, said Mr Agarwal. He added that the hallmarks of a global managers is that they are hands on and tend to take the responsibilities on themselves instead of passing it onto others. The traits of a global manager are fundamental and are present in all managers. They are not Chinese, Japanese or Indian, said Mr Agarwal.

speakers from the industry said that in the era of globalisation, there is no such thing as a global manager. Instead business managers of today have to operate in a climate which comprise the changing aspirations of customers, shareholders, employees and Government.

1. Selection of foreign subsidiary managers is becoming increasingly important, as more and more firms are driven by competition to extend their global reach through a physical presence in foreign markets or via the virtual world of the internet (Ashamalla, 1998; Cook, and Emler, 1999; Ones and Viswesvaran, 1999; Ruhe and Alien 1997). As always, subsidiary managers are seen as the "linchpin" to many activities between the parent firm and local market contacts (Lindsley, 1999). In these roles subsidiary managers help establish good relations with local intermediaries who can help firms further their market penetration and diversification (Dillon and Reid, 2000). Another reason for placing greater importance on manager selection stems from the more traditional role of the manager argued by Forster (1997) who proposes, "coordination, integration and control issues [about local operations] faced by the multinational enterprises (MNEs) must all be channeled through...[subsidiary]... managers" (p. 78). Often, these individuals are required to co-exist between widely dissimilar cultures thus leading to issues of "fit" between manager and country.
http://proquest.umi.com/pqdweb?did=1194641211&sid=2&Fmt=4&clientId=103388&RQT=309&VName=PQD Author: Jos Castillo

2. There are 6 mandates global managers need to follow in order to successfully respond to business forces. The first is to develop a shared vision and strategy. In this step, communication with employees is essential because it builds commitment and aligns individual goals with company goals. The 2nd mandate is to prompt the organization to respond to changes. The 3rd mandate is to expect continuous improvement. This applies not only to goods and services, but also to every activity in which the manager and the organization are involved. The 4th mandate is to develop a multicultural perspective. The workforce is becoming more diversified, and global managers might want to rethink how they manage people. The 5th mandate is to empower individual employees to accept more responsibility, and the 6th is to build team performance
http://proquest.umi.com/pqdweb?did=393561&sid=4&Fmt=3&clientId=103388&RQT=309&VName=PQD Author: Sullivan, Paul

3. One of the greatest challenges facing US industry is the internationalization of business. The globalization of the world's markets and the corresponding shift from domestic to international interactions requires the learning and adoption of new management skills. Managers on foreign assignment for multinational corporations must be able to operate effectively and comfortably in a multicultural, multilingual, and geocentric environment. Even though the management of the expatriate adjustment process has been identified as the most pressing human resource task for the multinational corporation, studies indicate that these employees often fail. The importance of cultural training in the area of international business is delineated by addressing the need for such training and examining how it should be conducted. Cultural differences are explored, common training methods are compared, and a case is made for the around-the-job training (AJT) approach. In the global training arena, AJT has the potential to be more effective than traditional training methods
http://proquest.umi.com/pqdweb?did=1212441&sid=4&Fmt=2&clientId=103388&RQT=309&VName=PQD Author: Mishra, Jitrenda, McKendall, Marie

a.Global managers have a strong interest in and tolerance for other cultures and understand how a particular decision might affect a company's markets or competitors around the world. Yet at issue is how such understanding can be created. Global companies are spending more time trying to figure out what attributes produce the kinds of employees who can succeed in another culture. When the Conference Board, a business research firm, surveyed companies on this question, it found a certain uniformity among US and non-US companies.

b.The 2nd success factors that tied for first place were knowledge of the business and a high degree of tolerance and flexibility. c.The 3rd success factor on the list was the ability to work with people. The ColgatePalmolive Co. looks for 5 things in potential candidates for global managers: 1. work or education overseas, 2. proficiency in a language other than English, 3. computer skills, 4. adaptability and 5. some marketing, sales, or entrepreneurial experience.
http://proquest.umi.com/pqdweb?did=827527&sid=4&Fmt=3&clientId=103388&RQT=309&VName=PQD

author : Geber, Beverly

RECOMMENDATIONS OR FINAL COMMENTS:

From the above observations we can conclude that: 1.MNCs are venturing into new foreign territories to withstand in the global competition in business scenario. 2.Managers working for such companys subsidiary in the foreign territories need to show adaptation with the local environment while pushing the company into the local market. 3.So such a manager cant actually implement values of his company directly to the foreign territory he is looking after. 4.He has to be a good local manager which maintaining harmony with the core values of the company. 5.Succeeding as a global leader takes more than a surface understanding of a country's etiquette, protocols and idiosyncrasies. Companies need to ensure their executives understand the different leadership styles between countries before sending them on a foreign assignment. Failure to do this could jeopardize business results -- and devastate the career of the executive. As business becomes even more globalized, the companies that will ultimately succeed are those that have an

articulated set of business goals -- and a global leadership strategy that is aligned with these goals.
http://proquest.umi.com/pqdweb?did=1174430771&sid=12&Fmt=2&clientId=103388&RQT=309&VName=PQD author: Marjo Johne

6.Thus in reality any manager who is termed as a global manager is actually a local manager with Global outlook and such purly global manger is possible in any part of the world. Thus global manager is atually a global manager in the precise manner.

CONCLUSION

BIBLOGRAPHY:

Websites: 1. http://wiki.answers.com/Q/Define_global_management 2. Mintzberg H. & Moore K. (2006) Global or Wordly, World Business Magazine, Management Today Website: http://www.managementtoday.co.uk/search/article/547318/global-worldly 3. http://www.financialexpress.com/news/global-manager-a-myth-or-reality/100381 4.www.tata_com Global manager A myth or reality.mht 5. http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6W45-45Y4H808&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1 093392267&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid= 10&md5=432e8d7d85ae70bae57a49786101aec5

E database: www.Proquest.umi.com
1.http://proquest.umi.com/pqdweb?did=1194641211&sid=2&Fmt=4&clientId=103388&RQT=309&VName=PQD

2. http://proquest.umi.com/pqdweb?did=393561&sid=4&Fmt=3&clientId=103388&RQT=309&VName=PQD 3. Mishra J. & McKendall M. (1993) Globalizing business: The importance of around-the-job cultural
training, International journal of Management, Vol. 19, Proquest.
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14. http://proquest.umi.com/pqdweb?did=1527721721&sid=15&Fmt=3&clientId=103388&RQT=309&VName=PQD

15.http://proquest.umi.com/pqdweb?did=1759546251&sid=15&Fmt=3&clientId=103388&RQT=309&VName=PQD 16. http://proquest.umi.com/pqdweb?did=1606825671&sid=15&Fmt=2&clientId=103388&RQT=309&VName=PQD 17. http://proquest.umi.com/pqdweb?did=1550172271&sid=15&Fmt=3&clientId=103388&RQT=309&VName=PQD 18. http://proquest.umi.com/pqdweb?did=1777610521&sid=20&Fmt=2&clientId=103388&RQT=309&VName=PQD 19. http://proquest.umi.com/pqdweb?did=1232401421&sid=21&Fmt=2&clientId=103388&RQT=309&VName=PQD 20. http://proquest.umi.com/pqdweb?did=1219247481&sid=21&Fmt=2&clientId=103388&RQT=309&VName=PQD

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