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Mgt501 mod1case

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Edgardo Donovan (a.k.a. Eddie Donovan) is a CIO for the Department of Defense. Previously, Edgardo was the Director of Web Marketing/Design in Dublin, Ireland for the financial services division of …

Edgardo Donovan (a.k.a. Eddie Donovan) is a CIO for the Department of Defense. Previously, Edgardo was the Director of Web Marketing/Design in Dublin, Ireland for the financial services division of First-e Group PLC one of Europe's largest e-Banks valued at 1.6 billion euros at the time.

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  • 1. . . . . . . . . . . Leveraging Expatriate and Domestic Talent when Expanding . . . Operations .Abroad . . . . . . Edgardo Donovan Touro University International MGT 501 – Organizational Behavior Dr. Ken Myers Module 1 – Case Analysis Monday, January 23, 2006
  • 2. . . . . . . . . . . Leveraging Expatriate and Domestic Talent when Expanding Operations Abroad Ex.1 – Save Our Culture (CartoonStock.com) 2
  • 3. “A survey by the National Foreign Trade Council reveals that the number of Americans working overseas jumped 30% in 1995 and is expected to continue to rise. Many of those who work abroad see an international assignment as an exciting, rewarding, sometimes even glamorous career move. Still, gaining those new-found business and management skills may come as a culture shock for the uninitiated.” (Hayes) In order to ensure success in expanding operations overseas US companies must find the right balance when leveraging the respective talents of expatriate and foreign managers throughout the different phases of the business development process. Expatriate and domestic managers bring different qualities to the table and depending on what a company's needs are either group can prove to be more adept at managing an international workforce. Ex.2 – Football? (CartoonStock.com) 3
  • 4. . . . . . . . . . . The opening up of European and South-East Asian markets, the need for reconstruction, as well as the globalization of world markets since the end of World War II has seen an unprecedented expansion of US businesses abroad. Today that trend continues as companies struggle to create footholds and expand their market share in overseas countries. Although technology has made travel and communication easier the risks and problems associated with international expansion remain tied to an organization’s ability to develop a hybrid organizational culture. Such a culture must stress the success principles already proven in American markets while localizing them according to foreign cultural values. In order to achieve such a goal companies must rely on very competent global managers. "The first one defines a global manager as someone who manages products, services and employees across borders and has the ability to innovate as well as adapt to the constantly changing global situation. This global manager must possess key technical skills that include IT knowledge as it relates to management and corporate efficiency. Progressive technology and `borderless' Internet are affecting the way we work. There are vast opportunities and international resources available for global managers to tap into and respond accordingly in respect of products, sales and marketing. Take, for example, the advent of the Internet, mobile computing, electronic data interchange and data warehousing which can assist a global manager's task from a much broader and advanced perspective." (Song) Aspiring American global managers are usually very prepared from a business, strategic, and technological standpoint. Managers such as these are sent abroad to ensure that the use of best practices are implemented across the foreign subsidiary. They also provide an invaluable service in educating local managers and employees in how to run their respective business model. 4
  • 5. Ex. 3 – Globalization (CartoonStock.com) “The other definition describes a global manager as a manager who feels at home in an international environment, has key technical skills and, most importantly, top-notch emotional intelligence. Essentially, a global manager should possess the ability to manage people from diverse cultures and cosmopolitan backgrounds." (Song) The foreign employee new to working for an American company will typically be at a disadvantage in his ability to successfully leverage the latest tools and techniques utilized by their employer in the US marketplace. They may also lack the understanding of their employer’s business model and may not have experience working in similar environments. However, they are invaluable in that they understand the culture and the language to effectively communicate and manage a local workforce. They also are effective operators in the earlier stages of setting up a 5
  • 6. . . . . . . . . . . business because it is usually they who are tasked to translate the organization’s objectives into a practical localized gameplan. Things like opening bank accounts, getting licenses, integrating with the legal system, and other tasks some take for granted in America may be insurmountable seen through the eyes of a befuddled American manager struggling to cope within a new cultural environment. Understanding one's own culture let alone foreign cultures is truly a never-ending lifelong process if one wants it to be. When one lives many years immersed in a particular culture you can develop a sense of what to expect from people, sensitivity to local customs/habits, and a general sense of the cultural values which constitute the foundations of a particular society. Most things we may pick up are through experience and are often assimilated at a subconscious level. If we define culture as all past and present influences that contribute to the psychological and social development of an individual or a group of people we could say that one may become more "culturally sensitive" the more they spend living among the latter. Ex. 5 – Top Level View (CartoonStock.com) 6
  • 7. “Despite having worked in Turkey, Amsterdam, Zurich, Düsseldorf and Seoul, Miller was surprised by the cultural differences in China. In a country where people are fed information, memorize it without question and don't take well to criticism, "I had to learn not to be too direct with my employees," she recalls. Miller, who didn't start taking formal language classes until nine months into her assignment, says that learning the semantics of the language gave her important clues about the culture. "The Mandarin word for `question' is the same word for `problem.' Knowing that helped me better understand that people who ask too many questions, or are too challenging, are viewed negatively.” (Hayes) To me the way people think is to a person as much as culture is to a nation or a state. The more time you get to know a person or a country the more heightened sense you will develop about them. However, it will be very difficult to define what makes people or countries "tick" with any degree of absolute certainty. Knowing the history of a country, the language of its people, living a healthy social life, and nurturing a great deal of curiosity as to why countries operate the way they do as well as what influences the worldview of its people will undoubtedly give a person a better chance at formulating logical analysis regarding these complex dynamics. The benefits of knowing many foreign cultures and languages are mostly of a social nature. Knowing how to communicate in multiple languages opens you up to different world cultures and enables you to gain the ability to sense and manage the many nuances that arise when dealing with many different perspectives. 7
  • 8. . . . . . . . . . . Companies that operate internationally with a mix of American expatriates and local managers will undoubtedly have to adapt to the different growth stages of a company where the demand for their skills and experience will fluctuate. There is no set parameter that would describe the process for every company but for sake of an example the following can be interpreted as a common life-cycle process. In the early stages expatriate managers are essential in fostering their employer's strategy and corporate culture in a foreign environment. They lay the initial strategic groundwork and will work heavily as trainers and mentors to the local managers hired to launch operations. During this phase while the local employees absorb the operational teachings their American counterparts will begin running into the first cultural obstacles related to establishing the basics for a successful operations (i.e. banking, legal, resource procurement, hiring, employee management, etc.) and will start delegating to many operational tasks to the foreign nationals. As they do this they become culturally aware and take their first steps in resolving global management issues. In the middle stages once a business is beginning to become established expatriate will typically begin to groom locals into taking over their policy setting and workforce development roles. As this phenomenon takes place the reliance on American workers will become less and less to the point where expatriates may constitute very few key executive positions over the long-term. Expatriates are expensive and their compensation levels are sometimes double that of an equivalent local leadership employee 8
  • 9. In order to ensure success in expanding operations overseas US companies must find the right balance when leveraging the respective talents of expatriate and foreign managers throughout the different phases of the business development process. Expatriate and domestic managers bring different qualities to the table and depending on what a company's needs are either group can prove to be more adept at managing an international workforce. 9
  • 10. . . . . . . . . . . BIBLIOGRAPHY I. Works Cited Hayes, Cassandra. The Intrigue of International Assignments. Black Enterprise, 1996. Song, Josephine. Transcending Borders. Malaysian Business, 2002 CartoonStock.com. Football. CartoonStock.com, 2005 CartoonStock.com. Top Level View. CartoonStock.com, 2005 CartoonStock.com. Globalization. CartoonStock.com, 2005 CartoonStock.com. Save Our Culture. CartoonStock.com, 2005 II. Works Consulted Hayes, Cassandra. The Intrigue of International Assignments. Black Enterprise, 1996. Taylor, Frederick. Scientific Management. Kernsanalysis.com, 2006. Wertheim, Edward. Historical Background of Organizational Behavior. Northeastern University, 2003 Beebe, Steven – Beebe, Susan, Redmond, Mark. Interpersonal Communication: Relating to Others. Allyn & Bacon, 1996 Grove, Andy. Only the Paranoid Survive. Simon and Schuster, 1995 Burman, Edward. Managing Cultural Diversity In A Global World. Workinfo.com, 2006 Fast Company. What Does the Future Look Like? Fast Company, 2001 Song, Josephine. Transcending Borders. Malaysian Business, 2002 CartoonStock.com. Football. CartoonStock.com, 2005 CartoonStock.com. Top Level View. CartoonStock.com, 2005 CartoonStock.com. Globalization. CartoonStock.com, 2005 CartoonStock.com. Save Our Culture. CartoonStock.com, 2005 10

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