Global Employment

& Intercultural
Management
Presented By: Cherine Soliman
MBA
Teacher Assistant in Contemporary Management
 Globalization
Agenda:
 Definition
 Globalization forces
 The Impact
 Why is globalization significant to organization?
 Types of global organization

 Global Employment
 Types of Global Employees
 Types of Global Assignments
 Successful global employees
 Causes of Expatriate assignment failure
 Expatriate adjustment Stages
 Expatriate compensation components
 Culture
 What is culture
 Dimension of culture
 How does globalization affect people at work

 Multicultural Workplace
 Why Diversity
 Diversity management
 Workplace diversity
 Dimension of diversity
 Strategic Importance
 Traditional versus new paradigms
 Current industry practice

 Recommendation
 Key focus areas – Global Firms
 Intercultural competencies Training
Globalization
 Globalization Definition:

This characteristic of the Cybernetic Revolution

qualifies the tendency of any
entity/activity/technology to acquire a dimension
that grows beyond any "frontier" that would be
imposed by such criteria as geography, culture,
religion, gender, age, etc. Anything and/or
anybody can have a worldwide impact.
 Globalization the Difficult Topic
 Physical
 World becomes
smaller
 Expatriates
 Global Companies
 Business Travelers

 Virtual
 Internet
 Mobile Communication
 Globalization Forces

Global
GlobalPopulation
Population
Changes
Changes

Global
Global Globalization
Globalization Global
GlobalEconomic
Economic
Communications Interdependence
Communications Forces
Forces Interdependence

Regional
RegionalAlliances
Alliances
NAFTA,
NAFTA,EUEU
 Why is globalization significant to
organization?
 A global economy.
• Information technology and electronic
communications have:
 Promoted a global economy.

 Created Internet business opportunities.

• Transnational movement of products, trends,

values, and innovations.
• Multicultural workforces.
 Why is globalization significant to
organization?
 Regional economic alliances.
• European Union (EU).
• North American Free Trade Agreement
(NAFTA).
• Caribbean Community (CARICOM).
• Andean Pact.
• Asia-Pacific Economic Co-operation Forum
(APEC).
 Why is globalization significant to
organization?
 Global quality standards.
• ISO designation for quality standards.
• ISO framework for quality assurance
worldwide.
• ISO certification is important for doing
business in Europe and developing a reputation
as a “world-class” manufacturer.
 Why is globalization significant to
organization?
 Global managers.
• A global manager is someone who knows how to
conduct business across borders.
• The global manager:
Is often multilingual.
Thinks with a world view.
Appreciates diverse beliefs, values,
behaviors, and practices.
Is able to map strategy in light of the
above.
 Why is globalization significant to
organization?
 Most organizations must achieve high
performance within a complex and competitive
global environment.
 Globalization involves complex economic networks
of competition, resource supplies, and product
markets transcending national boundaries and
circling the globe.
Types of Global Organization

Types
Global Employment
 Global Employment

Types of Global Employees

Host-Country Third-Country
Expatriate
National National
 Global Employment: Expatriate
 Expatriates.
 People who live and work abroad for extended
periods of time.
 Can be very costly for employers.

 Progressive employers take supportive measures

to maximize potential for expatriate success.

 Greatest problems occur when entering and

working in a foreign culture and upon return

home.
Types of Global Assignments
Successful global employees
Successful global employees
Causes of Expatriate assignment
failure
Expatriate adjustment Stages
 International Compensation
 Balance Sheet Approach
• Equalizes cost differences between the international
assignment and the same assignment in the home country.
 Home-country reference point used to maintain a

standard of living equivalency.

 Home-country compensation and other benefits are

protected during the international assignment.

 Global Market Approach
• International assignments are viewed as continual and
core components of compensation and benefits are
provided regardless of assignment location.
Expatriate compensation components
CULTURE
 What is culture?
 Unique pattern of shared assumptions, values
and norms that shape socialization activities,
language, symbols, rites and ceremonies of a
group of people
 Like personality, culture affects in predictable
ways how people behave when told what to do
 An organization has own unique culture and
subcultures among departments and employees
Popular dimensions of culture include:

• Language.

• Time orientation.

• Use of space.

• Religion.
 Cultural Dimension
 Language.
• Perhaps the most visible aspect of culture.
• Whorfian hypothesis — considers language as a
major determinant of thinking.
• Low-context cultures — the message is
conveyed by the words used.
• High-context cultures — use words to convey
only a limited part of the message.
 Cultural Dimension
 Time orientation.
• Polychronic cultures.
 Circular view of time.

 Does not create pressure for immediate

action or performance.
 Emphasis on the present.

• Monochronic cultures.
 Linear view of time.

 Creates pressure for action and performance.

 Long-range goals and planning are important.

 Cultural Dimension
 Use of space.
• Proxemics.
The study of how people use space to
communicate.
Reveals important cultural differences.
• Concept of personal space varies across
cultures.
• Space is arranged differently in different
cultures.
 Cultural Dimension

 Religion.
• A major element of culture.
• Can be a very visible aspect of culture.
• Often prescribes specific behavioral practices.
• Influences codes of ethics and moral behavior.
• Influences conduct of economic matters.
Hofstede’s Culture Dimensions

Types
Power Distan
 Cultural Dimension
 Uncertainty avoidance.
• The cultural tendency toward discomfort with
risk and ambiguity.
• Preference for structured versus
unstructured organizational situations.
• Example of a high uncertainty avoidance
culture — France.
• Example of a low uncertainty avoidance culture
— Hong Kong.
 Cultural Dimension
 Power distance.
• The willingness of a culture to accept status
and power differences among members.
• Respect for hierarchy and rank in
organizations.
• Example of a high power distance culture —
Indonesia.
• Example of a low power distance culture —
Sweden.
 Cultural Dimension
 Individualism-collectivism.
• The cultural tendency to emphasize individual
or group interests.
• Preferences for working individually or in
groups.
• Example of an individualistic culture — United
States.
• Example of a collectivist culture — Japan.
 Cultural Dimension
 Masculinity-femininity.
• The tendency of a culture to value
stereotypical masculine or feminine traits.
• Emphasizes competition/assertiveness versus
interpersonal sensitivity/relationships.
• Example of a masculine culture — Japan.
• Example of a feminine culture — Thailand
 Cultural Dimension
 Long-term/short-term orientation
• The tendency of a culture to emphasize future-
oriented values versus present-oriented values.
• Adoption of long-term or short-term performance
horizons.
• Example of a long-term orientation culture —
South Korea.
• Example of a short-term orientation culture —
United States.
Selected Countries on Hofstede’s
Culture Dimensions
Selected Countries on Hofstede’s
Culture Dimensions
 Types of Organizational Culture

1. Bureaucratic
• Formalization, rules, SOP, hierarchy
1. Clan
• Tradition, loyalty, personal commitment
1. Entrepreneurial
• Risk-taking, dynamism, creativity
1. Market
• Achievement of financial/market goals
 Types of Organizational Culture
(cont.)
 Bureaucratic culture
• Formalization, rules, standard operating procedures
and hierarchical coordination
• Long-term concerns are predictability, efficiency,
and stability
• Members value standardized goods and customer
service
• Behavioural norms support formality over
informality
• Rules/procedures in thick manual (‘go by the book’)
 Types of Organizational Culture
(cont.)
 Clan culture
• Tradition, loyalty, personal commitment, extensive
socialization, teamwork, self-management and
social influence
• Obligation beyond simple exchange of labour for
salary/wage
• Contributions exceed contractual agreements
• Loyalty exchange for security
• Achieves unity with long and thorough socialization
• Members serve as mentors/role models for newer
members
 Types of Organizational Culture
(cont.)
• Shared image of organization’s style and conduct
• Strong sense of identification and recognition of
interdependence
 Entrepreneurial culture
• Risk-taking, dynamism, creativity
• Commitment to experimentation and innovation
• Provides new and unique products and rapid growth
• Small to medium-sized companies still run by
founder
 Types of Organizational Culture
(cont.)
 Market culture
• Achievement of measurable and demanding goals
• Especially those that are financial and market-based
• Competitiveness and profit orientation
• Relationship contractual and obligations agreed in
advance
• Neither party recognizes the right of the other to
demand more than was originally specified
• Don’t promise/imply loyalty and security
• Utilitarian: Each party uses other to further its own
goals
 Framework of Types of Cultures

Flexible Entrepreneurial
Clan culture
culture
Formal Control
Orientation

Bureaucratic
culture Market culture
Stable
Internal Focus of Attention External
 Understanding cultural differences

 Two problems in international dealings:

parochialism and ethnocentrism.

• Parochialism — assuming that the ways of one’s

own culture are the only ways of doing things.
• Ethnocentrism — assuming that the ways of
one’s culture are the best ways of doing things.
Cultural differences in handling relationships
with other people

• Universalism versus particularism.

• Individualism versus collectivism.
• Neutral versus affective.
• Specific versus diffuse.
• Achievement versus prescription.
Diversity
 Diversity Management

A diverse workforce requires managers with new

leadership styles who understand employees’
varying needs and creatively respond by offering
flexible management policies and practices
 Workplace diversity

Includes important human characteristics that

influence values, perceptions of self and others,
behaviours, and interpretations of events
 Dimension of Diversity
Core: Secondary:
 Age  Education
 Gender  Past Work
 Race Experiences
 Religion  Family Status
 Ethnicity & Culture  Income
 Sexual Orientation  First Language
 Mental & Physical  Recreational
Disabilities Interests
 Geographic Location
 Family Background
Key Focus Areas – Global Firms

Employee Recruitment
Sensitization & Selection
to Differences
Key
Focus
Areas
Orientation,
Compensation
Training &
Decisions
Development

Performance
Appraisal
 Recommendation :
Key Focus Areas – Global Firms
Orientation, Sensitizing
Recruitment Performance Compensation
Training & to Cultural
& Selection Appraisal Decisions
Development Differences

Expatriates
Host country nationals
Third country nationals
 Key Focus Areas – Global Firms
Orientation, Sensitizing
Recruitment Performance Compensation
Training & to Cultural
& Selection Appraisal Decisions
Development Differences

Cross-cultural orientation themes

• Language
• Cultural norms
• Managing personal and family life
 Cross-cultural training methods

• Sensitivity training, culture assimilators, critical

incidents, cases, role-play, simulation
 Key Focus Areas – Global Firms
Orientation, Sensitizing
Recruitment Performance Compensation
Training & to Cultural
& Selection Appraisal Decisions
Development Differences

 Home country evaluations

• Performance appraisal carried out by an expatriate’s
home office
 Host country evaluations
• Performance appraisal carried out by an expatriate’s
local (or host) office
 Key Focus Areas – Global Firms
Orientation, Sensitizing
Recruitment Performance Compensation
Training & to Cultural
& Selection Appraisal Decisions
Development Differences

 International compensation
• Goes beyond pay and benefits
 Relocation assistance
• Financial or other assistance to help
expatriates move to the new work destination
 Key Focus Areas – Global Firms
Orientation, Sensitizing
Recruitment Performance Compensation
Training & to Cultural
& Selection Appraisal Decisions
Development Differences

 Challenges to workforce diversity are amplified in

international HR management
 Recommendation
 Intercultural
competencies Training
Thank you

Cherine Soliman