Topics for Discussion

• Challenges faced by Global Manager

Introduction

• A global manager is defined by the work he or she is doing, frequently within a company
with global presence or operations. A global manager is responsible for managing teams
of employees or business operations across diverse cultures and time zones, which calls for
new skill sets and capabilities

• Managerial functions are keys to organizational success. Therefore several challenges

confront global managers today and these challenges mainly arising from the significant
change in the outside world. Some of the major emerging issues or challenges that all
managers face today are as follows:

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Challenges faced by Global Managers

Planning
• To do business internationally, managers must first plan their approach well. They have to
decide how exactly will they be conducting their activities.
• This includes deciding whether they will export products or enter into joint ventures with a
local business. They may even function as an MNC by opening offices in various countries
by operating from one location.
• International planning always requires a thorough understanding of local political,
social and economic environments. These factors also include political stability,
government pressure, intellectual property policies, competition, etc.

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• Organizing
It is not possible for an international business to operate in multiple countries using standard
and common practices. International managers always have to organize their business to adapt
to local requirements of all countries.
Firstly, they have to create a command hierarchy that involves people operating in multiple
countries. Then, they have to adhere to local laws and regulations of the nations they operate
in. Managers even have to keep local business practices and customs in mind while organizing.
International businesses also have complicated management hierarchy structures as people
operate from many nations. Managers must ensure that they have a robust communication
protocol to deal with this problem. Employees must always be able to address their grievances,
ideas and suggestions.

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• Staffing
International managers next have to figure out whether they will hire local employees or send
their own staff abroad. Consequently, they will need to be aware of all local labour laws if they
decide to hire employees locally.

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• Directing
Directing can often become very difficult when people from multiple countries work together.
Since cultural differences influence people to work differently, managers have to adapt
themselves in every unique situation. Even language can become a barrier in cross-border
business.
To deal with such problems, managers can try to involve people of diverse cultures and
nationalities in management. Human resource departments of large companies always try to
encourage cultural diversity in their organizations. They even conduct sensitivity seminars to
make employees and managers aware of diverse cultures among their workforces.

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• Controlling
The problems that affect the function of directing apply to the process of controlling as well.
Controlling requires meetings between people which helps in the exchange of information on a
routine basis. Reporting and inspections are also important aspects of control.
Cultural differences amongst employees can always affect these kinds of functions. Managers,
thus, should be able to adapt to all peculiarities and facilitate the controlling process.

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Globalization
• Globalization means making the world not limited in a boundary ie; creation of boundary
less world. It is the free movement or free flow of factors of production all over the world
and there must be no any hindrance and restriction. Management is no longer controlled
by national borders. It means free trade in products and services,offering a wide choice of
goods to customer around the world.

• The growth of regional free trade agreement and world trade organization (WTO) present
new challenges and opportunities for managers.It creates extreme competition for markets
and also for natural resources..

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Workforce diversity:

• Workforce diversity means that organization are becoming more heterogeneous in terms
of gender, ethnicity,race and other backgrounds. Therefore, management needs to deal
with diversified workforce consisting of knowledge workers, bimodal workforce, work
teams, virtual teams and contingent employees

• Dealing with diversity requires visionary leadership in managers.The managers will need to
shift their approaches and philosophy to workforce management

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Ethics and social responsibility:
• Ethics is the set of moral principles and rules guiding an individual’s behaviour .It is the
basis of determining right or wrong in a given situation .It is an individual perception and
belief while taking a decision.Managing ethically is not easy.Conflicts will often arise .There
is increasing concern about the role and state of ethics in business because of the belief
that business ethics have declined in recent years .Managers are concerned because of the
complexity of ethics in decision making.
• Social responsibility includes being aware of society and toward its values and
regulations .Modern organizations need to be involved in social concern .In recent years
public attention has been focused on the issues of social responsibility of business. Society
generally expects contribution to the quality of life and the society. Environment issues
have become matters of universal concern.

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• Technology: Technological environment consists of innovation,techniques, and the
organized knowledge or the ways of doing things .Technology includes any equipment,tools
or operating methods that are designed to make work more efficient.The managers must
grasp a proper understanding of these aspects of technological context.Technology
management has now emerged as an important and crucial management activity in
modern business firms to match the competitive market Managers have to cope with all
these changes taking place in technology and their management
• Innovation and Change: Organizations must pay attention to innovation and change.
Otherwise, they will go out of business. Product life span has been shortening every day.
Products need continuous improvement, upgradation ,and modification. Success will go to
those organizations that continually improve their product quality. They have to beat their
competitors in the marketplace with a constant flow of innovative products and services .
An organization’s employees are the vital forces for innovation and change. If they block
innovation and change, the organization will become a candidate for extinction. The
challenge for managers is to stimulate employee creativity for innovation and change
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• Quality and Productivity: Management needs to cope with continuous improvement in
product quality.The importance of quality, and standards for acceptable quality has
increased dramatically in recent years .There is interrelationship between quality and
productivity.Quality is the excellence of the productincluding its attractiveness,lack of
defects,reliability,and long-term dependability.Productivity has also become a major issue
for organization during recent years.Increase in productivity requires developing and
applying techniques and strategies.Low productivity is a threat to competitiveness.
• Knowledge Management: Knowledge management is the process of
capturing,developing,sharing and effectively using organizational knowledge.It refers to a
multi-disciplined approach to achieving organizational objectives by making best use of
knowledge

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• Language
Linguistic differences affect the way of communication with employees, customers and
business partners. Based on the level of foreign language knowledge--basically the English-in
the country's society, the foreign company must carefully decide whether it can use English as
a working and advertising language or if its management has to learn the country's own
language and build the strategy on that language. Small businesses may also face the same
linguistic challenges in local communities where the majority of the population is, for
example, Hispanic, Chinese or Polish.

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• Business Attitude

Information and knowledge about the business etiquette, attitude and habits of a foreign
country are essential to successfully compete or cooperate with businesses in a market. These
attitudes also determine how businesses react to different situations in the market (whether
they act offensively or defensively). Small businesses can use the information about these
different international business attitudes while competing against foreign companies in their
domestic market.

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• Technical Development
Differences among the technical development and facility of markets--internationally or within
the United States--determine fundamentally the opportunities of production, sales and
marketing of the operating businesses. For example, you cannot sell the latest 4G mobile
phones in a market where there's no 4G network. You can build your advertising and
promotion strategy exclusively on the Internet if the majority of the national population or
local community uses the Web as its primary source of information

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