BBC Content Team
International and Global Management
By: Christian Barnard and Reed Barnard
When an international or global company is managing their employees there are many things they have to keep in mind. One thing that they have to watch out for is the cultural differences of all the employees. For an example, employees from the US apply for a job based on money, but other people might have other reasons to apply for a job, like the environment. This does not only relate to what job they apply to, cultural differences also affect how the employee wants to be treated. For example, when a US employee does something good the manager might mention him in a meeting and congratulate/thank him, but if this were to be done to a most Japanese employee it would have a negative affect on them. If the managers ignore cultural differences it will negatively affect the moral, which will cause the quality of the work to go down. To avoid all of this from happening the managers should research the culture before they move to a country.
In international and global management there are many different things to consider when choosing managers in human resources management. There are 4 main approaches that can be taken to decide managers which are the ethnocentric, polycentric, regiocentric, and geocentric approaches. The ethnocentric approach is based mainly on using people from the parent country to fill all major positions including those that are in other countries. This can be good because it makes sure that the managers have experience and the skills needed, but can also be problematic when managing employees with different cultures. The next approach is polycentric which is based on natives from that country managing the operations there meaning that in the parent country their natives manage operations and in the host country the natives there manage operations there. This can be advantageous because it eliminates the culture gap in each country but also has the disadvantage of a cultural difference between them and the parent country managers. The next is regiocentric which involves hiring managers in other countries from the region in which they are located like operations in France being managed by people from all over Europe. This offers the benefit of knowledge from a variety of places around the location but also has the disadvantage of the cultural gap with the parent country. The final approach is geocentric which takes the best manager for the job no matter where they are located. This gives a wide variety of knowledge and management styles but can be expensive and requires a lot of training. Those are the 4 different styles for choosing managers in international and global business.
In summary, in international and global management a major factor in managing is cultural differences and how they are handled. In international and global management another thing to consider is how managers will be chosen and from where to maximize productivity and understanding between levels of the company.