Global Management

Globalization refers to the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries. Succeeding on a global level requires more than a desire to go global and a new set of skills and techniques; it requires that managers and organizations develop a global mind-set. A global mind-set can be defined as the ability to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics.

A manager with a global mind-set can perceive and respond to many different perspectives at the same time rather than being stuck in a domestic mind-set that sees everything from one’s own cultural perspective. Managers at all levels to have a global mind-set, the ability to appreciate and influence across different social, cultural, political, institutional, intellectual, and psychological characteristics. International business is defined as commercial transactions that occur across country borders.

One way for an organization to get started internationally is to seek cheaper resources, such as materials or labor, offshore, which is called offshoring or global outsourcing. Another is to develop markets for finished products or services outside their home countries through strategies such as exporting and partnerships.

One way that managers can fight their own ethnocentric tendencies is to understand and appreciate differences in social values. That’s where Hofstede’s Value Dimensions can help mangers. There four dimensions of national value systems that influence organizational and employee working relationships.

The four dimensions of cultural value systems include: Power Distance, Uncertainty Avoidance, Individualism and Collectivism, and Masculinity and femininity. Recent research by the Global Leadership and Organizational Behavior Effectiveness (GLOBE) Project extends Hofstede’s assessment and offers a broader understanding for today’s managers. In addition to the ones identified by Hofstede, the GLOBE project identifies the following characteristics: Assertiveness, Future orientation, Gender differentiation, Performance orientation and Humane orientation.

Effective management styles differ in each country, depending on cultural characteristics.

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