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Managing for Global OperationsBy Prof. Neeraj Mankad1Issues OrganizationalHRCoordinationCommunication and Knowledge managementOrganizationalStructureMatrix?Flexible?

Process global vs. multi location

Policies

ControlOwnershipHO vs. Local

`Staffing Philosophies for Global OperationsFirms using an ethnocentric staffing approach fill key managerial positions with people from headquarters that is, parent-country nationals (PCNs).In a polycentric staffing approach, local managers host-country managers (HCNs) are hired to fill key positions in their own country.

Advantages & DisadvantagesEthnocentric staffing: close control, high technical capability/experience required, proprietary concerns. Lack of opportunities for local mgrs, expense, poor adaptation & lack of expatriate effectivenessPolycentric staffing: good for multinational strategy, localization. Familiar with the culture, language & local norms Coordinating goals bet subsidiary & PC can be difficult, local mgrs having a potential conflicting loyaltiesStaffing Philosophies for Global OperationsIn the global staffing approach, the best managers are recruited from within or outside of the company, regardless of nationality.In a regiocentric staffing approach, recruiting is done on a regional basis say within Latin America for a position in Chile.Problems with ExpatriationSelection based on headquarters criteria rather than assignment needs

Inadequate preparation, training, and orientation prior to assignment

Alienation or lack of support from headquarters

Inability to adapt to local culture and working environmentProblems with ExpatriationProblems with spouse and children poor adaptation, family unhappinessInsufficient compensation and financial supportPoor programs for career support and repatriation

Knowledge ManagementKnowledge Management is the conscious and active management of creating, disseminating, evolving and applying knowledge to strategic endsKnowledge Management ProcessTransfer: managing the flow of existing knowledge between parents and from the parents to the IJVTransformation: managing the transformation and creation of knowledge within the organization through its independent activitiesHarvest: Managing the flow of transformed and newly created knowledge from the IJV back to the parentsKnowledge Management Process