Discuss the implications of managers in the context of globalization

庞禹君

【Abstract】：This essay mainly discusses the implications for managers in the context of globalization. Globalization changes the environment of doing business. Thus managers are faced with three main challenges： promoting employee diversity， establishing core advantages and enhancing the international business capability. Main ways of build a strong multinational culture capability for managers consist of enhancing intercultural consciousness， adapting to local circumstances and taking part in customized training programs.

【Key words】： globalization， managers， multinational business， challenges

1. Introduction

Nowadays economic globalization affect enterprise production， technology and organization forms， the management mode of the government， the social culture， moral and legal basis， the economic growth and sustainable development.

Globalization greatly promotes the development of world economy. Firstly economic globalization is conducive to the optimal allocation of factors of production. No matter how high the efficiency of a country's economy is， it is limited by its own resources and market. Only global resources and market integration， can make a country's economy in the current conditions to get rid of the constraints of resources and market （Graf and Mertesacker， 2009）. Secondly， internationalization has promoted the development of international division of labor. Thirdly， to promote the rational optimization of economic structure. According to Bala，V. and N.Van Long （2003）， the economic globalization brings the world science and technology flowing rapidly， so that all the countries， especially developing countries can import world advanced science and technology which is needed. Gabriel J. （2010） believe that globalization promotes allocating the production， resources， personnel， trade， investment and finance， reducing costs and improving business efficiency.

2.Manager challenges

Globalization is of great significance to companies. It raises new requirements for mangers due to changes of environment and structure of organizations. Generally， managers are faced with three main challenges， that is employee diversity， establishing competitive advantages and developing the multinational business ability.

2.1 staff diversity management

With the development of enterprises， the sub-branches in different countries are established. So the company may take local condition in consideration and training of talents， especially multinational management staff.

Workforce diversity means that the staff constitute is of diversity， which may be attributed in ages， genders， nations and religions. In 1950s， the main labor force in US were the white. But recently， the employee may come from different regions. Staff diversity can bring mixed influences to companies. A good command of diversity can reduce costs. Another advantage may be attributed in a good reputation and can attract more brilliant talents and place a continuous foundation for sustainable development. This may also require more motivation methods and strategy applied to a wide range of employee.

2.2 competitive advantage establishment

Competitive advantage means one organization is better than its competitor on the account of higher efficiency and better competences producing goods and services that needed by consumers. High efficiency can be attributed in new technology or the advancement of staff skills. Katz M. and Shapiro C.（2005）believe that company downsizing can result in faster responding to consumers and more efficient operating. Flexible and faster company has a higher demand of managers in possession of great plan and organization ability. A corporate culture that encourage innovation is very important for companies in changeable market. Another advantage may be result in customers. There is no doubt that consumers positive responding of goods or services is crucial to the development of one company.

2.3 multinational business ability development

Cross-culture skills is a significant role for managers. A lack of cross-cultural ability for expatriates may lead to business failure. Cross-culture competency refers to ones ability to take advantage of knowledge， techniques， and personalities to work in high efficiency with people from different cultures in the international business settings.

Firstly， raising the awareness of cultural diversity is significant. Different people from different backgrounds may hold various value systems and thought patterns， contributing to various behaviors. Obtaining the consciousness of cultural variation， managers tend to be sensitive to new information beyond their preconception of host culture and perform better in daily life and work. As a result， expatriates are likely to respond to culture challenges well.

Raising awareness alone does not necessarily ensure expatriates exceptional cross-cultural competency； an active adaptation to local circumstances is the second crucial factor to obtain intercultural competency. Expatriates are likely to be influenced by culture shock， suffering from stress and anxiety. Adjusting to local surroundings can relieve the negative impacts.

Management values and beliefs in America and Germany may differentiate. American companies attach great importance to individual achievement， pragmatism， diligence and opportunity equality. In contrast， kinship， collectivism and interpersonal relationship are generally considered significant in most Chinese firms. In the international business settings， there are several essential aspects such as reserving， gifts and negotiating. Procedures and arrangement of reserving may differ in different regions. Consequently， adjustment to local circumstance is of great significance to cross-cultural competences.