Though this strategy brings with it a number of notable benefits with regard to the coordination of global operations, it does also bear with it a number of challenges which fall upon the Human Resources department to address.
Employing an expatriate as a leader in an otherwise nationally homogenous organization, for one example, will tend to require a conscientious acknowledgement of cultural differences which are likely to enter into engagements -- both in terms of the awareness of personnel and the individual in question. This will be intended to invoke dual sensitivities to inherent differences that might impact interpersonal relations, communication and managerial philosophy. Therefore, the HR Department must be prepared to bridge any gaps which might occur in this scenario by choosing the appropriate managerial candidate, devising goals which assume close parallels between differing national faces of the operation and by ensuring proper cultural training is in place within the existing organization.
Difficulties to this strategy of international management are demonstrably present. Specifically, it often difficult for personnel to adapt to a management style which is derived from an unfamiliar culture. This is reinforced further where gender is concerned, with the initiation of expatriate female managers into this equation only occurring in very recent times. (Linehan, 433) According to Hofstede, there are inherent differences likely in the cultural outlooks of interacting nations in the global market, particularly in such areas as gender orientation. Here, the association which the theorist draws between masculine and feminine cultural roles translates directly into organizational goals. He argues that this dimension "indicates the degree to which a culture values such behaviors as assertiveness, achievement, acquisition of wealth or caring for others, social supports and the quality of life. This dimension tends to draw unwarranted criticism for its name alone. It basically refers to expected gender roles in a culture." (Hofstede, 2)
It appears that often, in light of these concerns, organizations are ill-prepared to make the appropriate adjustments to enjoy the strategic benefits of the selected approach. This is to indicate that "many organisations have a clear outline of the expatriates' costs but a vague or unclear picture of their related return on investments." (Schiuma, 1) the result is that procedural adjustments rarely account for new opportunities in terms of the organization's versatility and diversity of perspective, instead focusing on what our research finds is the more burdensome process of taking on the integration of a new managerial culture.
This notion, though, is countered by the reality that "companies who manage the entire process well - beginning with assignment-specific goal setting, identifying appropriate candidates, and ending with securing appropriate jobs for expats upon repatriation - have a better return on investment." (KPMG, 1) it is true that the companies which fail to take into account these considerations are more commonplace than the company which does plan accordingly. For the purposes of our discussion, a recommendation emerges here to ensure above all that the managerial candidate is suited for the cultural acuity needed to proactively bridge the above-noted gaps.
The era of globalization has precipitated this quality in company leadership irregardless. but, as the discussion here will illustrate, globalization has produced some of the problems which do arise from this corporate integration. Particularly, as nations and their domestic companies develop partnerships with one another, often divergent goals will become mutually dependent. This will require a shared positive focus from managerial leaders at the corporate level to induce a sustainable fairness of practices betwixt one another. Given the qualities which produce successful partnerships, it should seem a matter of practicality to pursue a responsible implementation of globalizing goals. This is because, "the institutional environment -- and in particular, corporate governance stakeholders -- will shape firms' globalization patterns." (Aguilera et al., 56) Such patterns are directly implicated by the quality of international assignments such as those invoking expatriate managerial leadership.
Of course, where the issue of leadership is concerned especially, the way that cultures differently approach authority becomes distinctly relevant. According to Hofstede, "power distance reflects the degree to which a culture believes how institutional and organizational power should be distributed (equally or unequally) and how the decisions of the power holders should be viewed (challenged or accepted.)" (Hofstede, 1)
This means that organizations must be considerate of concrete cultural value differences which distinguish leadership modes of parties in a developing partnership. Indeed, evidence demonstrates that "the type of work goals whose pursuit is encouraged...
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