Managing International Transitions

download Managing International Transitions

of 25

Transcript of Managing International Transitions

  • 8/2/2019 Managing International Transitions

    1/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 1

    MANAGING INTERNATIONAL

    TRANSITIONS

    Topic 6

  • 8/2/2019 Managing International Transitions

    2/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 2

    REFERENCES

    Ferraro, P. Gary, The Cultural Dimensionof International Business, Prentice Hall2002, 4th Edition, Chapter 7.

    Harris, Philip R. and Moran, Robert T.,Managing Cultural Differences, GulfPublishing Company 2000, Fifth Edition,

    Mead, Richard, InternationalManagement Cross-Cultural Dimensions,Blackwell Publishers Inc. 2005,

  • 8/2/2019 Managing International Transitions

    3/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 3

    LEARNING OBJECTIVES

    At the end of this session, you shouldbe able to:

    1. Explain some reasons for failure inforeign assignments.

    2. Define culture shock.

    3. List the characteristics and symptoms of

    culture shock4. Explain the characteristic of each stage ofculture shock.

  • 8/2/2019 Managing International Transitions

    4/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 4

    LEARNING OBJECTIVES - cont

    5. Explain the phenomenon of reverseculture shock.

    6. List some tips in managing culture shock.7. Discuss areas of re-adjustments for

    repatriates or reverse culture shock.

    8. Explain methods for effective overseasdeployment.

    http://thumbpicked%2811%29/
  • 8/2/2019 Managing International Transitions

    5/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 5

    1. INTRODUCTION As companies globalise their

    operations, they may need tosend their managers to theiroverseas subsidiaries.

    Living and working abroad maysound exciting and fun becauseone gets: exposed to different cultures.

    to visit many interesting places,people, etc.

    to learn about the companys foreignoperations which, in turn, enhancesones career development.

  • 8/2/2019 Managing International Transitions

    6/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 6

    1. INTRODUCTION

    But there are managers who fail in theirforeign assignments and have to leavethe company.

    Therefore, one needs to understand: the issues that one might face and

    how to cope.

  • 8/2/2019 Managing International Transitions

    7/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 7

    2. WHY MANAGERS FAIL IN

    FOREIGN ASSIGNMENTS?

    Managerial and technical competenciesmight not be the major reason for failure.

    Research showed that less than one thirdof premature return arose from work-specific reasons.

    Cultural adaptation processes are themost important determinants of successor failure.

  • 8/2/2019 Managing International Transitions

    8/25

  • 8/2/2019 Managing International Transitions

    9/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 9

    2. WHY MANAGERS FAIL IN FOREIGNASSIGNMENTS?

    2.2 managers inability to adapt toa different physical or culturalenvironment.

    2.3 other family-related problems.

  • 8/2/2019 Managing International Transitions

    10/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 10

    2. WHY MANAGERS FAIL IN FOREIGN

    ASSIGNMENTS?

    2.4 the managers personality and emotionalimmaturity.

    2.5 the managers inability to cope with theresponsibilities posed by overseas work.

    2.6 the managers lack of technicalcompetence.

    2.7 the managers lack of motivation to workoverseas.

  • 8/2/2019 Managing International Transitions

    11/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 11

    3. DEFINITIONS OF CULTURE

    SHOCK Harris and Moran (2000)Ones psychological reaction to an unfamiliaror alien environment, which often occurs

    during a major transitional experience.

  • 8/2/2019 Managing International Transitions

    12/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 12

    4. CHARACTERISTICS OF CULTURE

    SHOCK It is important to note that

    culture shock :

    is diverse, unpredictable

    and difficult to control. is a reality that many face

    when in strange andunexpected situations.

    does not occur quickly andresults from a series ofcumulative experiences.

    is neither good nor bad.

  • 8/2/2019 Managing International Transitions

    13/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 13

    5. TEN SYMPTOMS OF CULTURE

    SHOCK1. Homesickness.

    2. Boredom.

    3. Need for excessiveamount of sleep.

    4. Compulsive eatingor drinking.

    5. Irritability.6. Exaggerated

    cleanliness

    7. Family tension andconflict.

    8. Chauvinisticexcesses.

    9. Hostility towards orstereotyping of host

    nationals.10.Loss of ability towork effectively.

  • 8/2/2019 Managing International Transitions

    14/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 14

    6. STAGES OF CULTURE SHOCK

    There are 6 stages:

    Stage 1: Preliminary stage

    Preparation for overseas experience

    giving rise to anticipation and

    excitement.

    Stage 2: Spectator stage

    Strange sights and different people

    produces fascination with the culture.

    http://thumbpicked%285%29/http://thumbpicked%285%29/
  • 8/2/2019 Managing International Transitions

    15/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 15

    6. STAGES OF CULTURE SHOCK

    Stage 3: Participation stage

    Where sights have been visited and one

    has to cope with everyday life.Stage 4 : Shock stage

    When problems start to arise that aredifficult to handle resulting in irritability,lethargy, depression, loneliness, etc.

  • 8/2/2019 Managing International Transitions

    16/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 16

    6. STAGES OF CULTURE SHOCK

    Stage 5: Adjustment stage

    Where identification with the host cultureprogressed satisfactorily with the

    development of relationships with locals,giving rise to a sense of belonging andacceptance.

    Stage 6: Re-entry stage

    Reverse culture shock sets in withindividual going through stages 1-5 athome.

  • 8/2/2019 Managing International Transitions

    17/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 17

    7. COPING WITH CULTURE SHOCK

    Ferraro (1998) suggested a fourfold approach:

    7.1 Have a general understanding of the

    concept of culture.7.2 Be familiar with local patterns of

    communication, both verbal and non-verbal.

    7.3 Have some cultural self-awareness.7.4 Be familiar with specific cultural

    information about the country or countriesthat one is conducting business.

  • 8/2/2019 Managing International Transitions

    18/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 18

    8. REVERSE CULTURE SHOCK

    Key problems faced by managersupon returning to home country:

    8.1 Adapting back to new work

    environment and organisational cultureof the home office.

    8.2 Results from the need to relearn homecountrys cultural norms, values and

    beliefs and how to communicate withfriends and co-workers.

    8.3 Manifest the same psychologicalreactions as culture shock.

  • 8/2/2019 Managing International Transitions

    19/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 19

    9. EFFECTIVE OVERSEAS

    DEPLOYMENT Many managers fail in foreign

    assignments.

    The costs of failure can be high for:a) The manager . Exampleb) The company. Example

    The company has both responsibility

    and a role to play to minimise failure .

  • 8/2/2019 Managing International Transitions

    20/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 20

    9. EFFECTIVE OVERSEAS

    DEPLOYMENTThis can be achieved by an effectivedeployment system with the followingcomponents:

    9.1 Employee assessment.

    9.2 Employee orientation.

    9.3 Support service develop onsite

    support and monitoring.9.4 Re-acculturation- have a well planned

    re-entry programme.

  • 8/2/2019 Managing International Transitions

    21/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 21

    9. EFFECTIVE OVERSEAS

    DEPLOYMENT9.1 Employee assessmentThe person who is likely to do well isone who: Has a realistic understanding of the

    problems and promises of internationalbusiness.

    Possess a number of important cross-

    cultural coping skills. Sees the world marketplace as providing

    vast opportunities for professional andpersonal growth

  • 8/2/2019 Managing International Transitions

    22/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 22

    9. EFFECTIVE OVERSEAS

    DEPLOYMENT9.2 Employee orientation Provide some form of learning/ training

    about the culture

    Should include: general programmes to increase cultural

    awareness.

    Culture-specific briefing programmes.

    Contents of programs: Cross-cultural communications and

    culture shock,

    Understanding culture and its influence

    on behaviour, etc.

  • 8/2/2019 Managing International Transitions

    23/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 23

    9. EFFECTIVE OVERSEAS

    DEPLOYMENT9.3 Support Service: On-site Support and

    Monitoring

    Orientation and briefing to be given oncefamily arrives in host country.

    On-site orientation should be pragmatic: Resolve immediate living problems.

    Explain issues of travel, personal growth andintercultural exchanges. Provide communication links to local community

    and home organisation.

  • 8/2/2019 Managing International Transitions

    24/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 24

    9. EFFECTIVE OVERSEAS

    DEPLOYMENT9.4 Reacculturation: Re-entry

    Programme

    Emphasis on re-integrating the expatriateinto home society and domesticorganisation.

    Involves counselling and personnelspecialists, psychologists and formerexpatriates to help manager to adjust.

  • 8/2/2019 Managing International Transitions

    25/25

    Meeting The Global Challenge Understanding Cross Cultural Diversity

    Managing International Transitions 25

    10. CONCLUSION

    Overseas work poses challenges.

    Transitional experiences in a foreignenvironment can be termed culture shock.

    Organisations can assist to reduce suchshocks by coaching, counselling and training.

    By increasing awareness, providing enjoyable

    experiences, facilitating integration,expatriate failure can be minimised.