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Global Controlling & Global Challenges: Prof. Baiju B.S, MEA Engineering College

1) The global workplace is becoming increasingly diverse as organizations expand globally and hire employees from various cultural backgrounds. 2) Effective leadership in such multicultural organizations requires understanding and adapting to different cultural communication styles, norms, and ways of conducting business. 3) Cultures can generally be categorized as linear-active, multi-active, or reactive based on their approach to time, task-orientation, relationship-building, and expression of ideas.

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655 views2 pages

Global Controlling & Global Challenges: Prof. Baiju B.S, MEA Engineering College

1) The global workplace is becoming increasingly diverse as organizations expand globally and hire employees from various cultural backgrounds. 2) Effective leadership in such multicultural organizations requires understanding and adapting to different cultural communication styles, norms, and ways of conducting business. 3) Cultures can generally be categorized as linear-active, multi-active, or reactive based on their approach to time, task-orientation, relationship-building, and expression of ideas.

Uploaded by

Sanuprabha
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© © All Rights Reserved
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GLOBAL CONTROLLING & GLOBAL CHALLENGES

Need for Leadership in global organizations:

The work place in the present day context is increasingly multi-cultural and diverse. Employees are required to work
together with colleagues from different parts of the world with varied backgrounds, customs and practices.Many
products and services are produced for export. In addition, organizations are outsourcing their work to countries having
low labor costs to stay competitive.

As opportunities for global expansion increase, the workplace will have more diversity. Organizations are now hiring
professionals with different backgrounds, cultures, styles and motivation. It is therefore necessary for organizations to
expand the capacity for people to handle the challenges of working with other cultures if they are to participate
successfully.
Leaders must be adaptive and flexible to manage this diverse work force. This requires an understanding of the historical,
political and economic references of people who work in the organizations. Leaders must understand differences in world
views, communication styles, ethics and etiquette of the people they deal with both internally and externally.

Understanding different cultures: According to Richard D Lewis, the different nations and cultures can be put into three

groups:

1. Linear-active: In these cultures, people focus on a scheduled time line and like to do one thing at a time. The
people in these cultures are task-oriented planners.
2. Multi-active: People belonging to these cultures are more focused on interactions and dialogues. Meetings are
given priorities and discussions and dialogues help to build relationship and it is this relationship that
determines what comes out of work.
3. Reactive: People belonging to this type of culture are more introverted. They are respect-oriented listeners and
concentrate on what people have to say without interruption and even if they interrupt it is rarely done. People
in these culture usually express their ideas in a passive voice.

Leaders must understand different cultures when they work in an organization which has employees belonging to

different cultures. The grouping done by Lewis is a simple perspective that can help one to begin to understand basic

differences in ways of doing business in foreign countries. However, we must be cautious and avoid working with

unverified assumptions.

Global Controlling

CONTROLLING PRACTICES IN JAPAN, THE UNITED STATES, AND THE PEOPLESREPUBLIC OF CHINA

In the view of Western managers, controlling involves setting Standards, measuring performance, and correcting
undesirable deviations. But to the Japanese, this process is less direct, as shown in the accompanying table.

Prof. Baiju B.S , MEA Engineering College


Controlling In Japan
As noted in the discussion of decision making, the groupitsdynamics and its pressureshave a profound impact on the
managerialprocess. In an office without dividing walls, peers are well aware of theperformance of their colleagues.
Moreover, managers are a part of the work group rather than being separated from employees by an office door.
Themeasurement of individual performance is not against specific verifiableobjectives; instead, emphasis is placed on
group performance. Also, theJapanese approach of letting subordinates save face would be incongruent with fixing the
blame for deviations from plans on individuals. Controlemphasizes process, not numbers. The Japanese are well known
for theirconcern for quality. Yet this has not always been the case. In the 1950s and1960s, Japanese products had an
image of shoddy quality. This image haschanged; good quality is one of the characteristics now associated withJapanese
products. This is due, in part, to the success of quality control, whichrequires grass roots involvement with very active
participation in qualitycontrol circles.

Controlling in the United States


Control in the United States often means measuring performance against pre-established precise standards. Management
by objectives, widelypracticed in this country, requires the setting of verifiable objectives against which individual
performance is measured. Thus the superior can tracedeviations for specific individuals, and this often results in fixing
blame. In anattempt to maximize individual results, group performance may suffer. We allcan think of examples in
which self-interest of individuals was placed beforegroup or organizational interest. The use of quality control programs
is not new. Hughes Aircraft Company, for example, had such programs for a longtime under the names Zero Defects and
Value Engineering. Many of theseprograms were developed in this country and later used by the Japanese
forimprovement of product quality and productivity.

Controlling in China
In China, control is exercised primarily by group leaders. The controlfocus is primarily on the group but also on the
individual. Factory managers,for example, are expected to meet their yearly quota. Thus, Chinese controlpractices are a
mixture of U.S. and Japanese managerial practices. Inidentifying deviations from standards, there is a tendency to let the
personsresponsible for sub performance save face (this is similar to the Japanesepractice). There is some use of quality
circles, but it is not a common practice.

Conclusions about Managerial Practices in Different Countries


The comparisons of planning, organizing, staffing, leading, andcontrolling practices in Japan, the United States, and
China make it clear that the application of the principles and managerial concepts differs in thesecountries. It is also clear
that managers with a global orientation will learnabout management as it is practiced not only in their own country but
also inother places in the world. Chinese managers look at both Japanese and U.Smanagerial practices and compare them
with their past experiences, as shownin the discussions of the managerial functions. Some practices from the
UnitedStates and Japan may be transferable, but others are not. The environment,especially sociocultural factors, does
influence practice. But its impact mayhave been overstated.
INTERNATIONAL FOCUS:IMPLICATIONS OF EC 1992 FOR MANAGERS IN THE NEW EUROPE
The European Community of 1992 will affect most U.S. companies, whether they are operatingwithin national
boundaries or abroad. Strong European firms will become tough competitors in theUnited States. To be successful in the
global market, enterprises need to use their capabilities to cope with the demands in the external environment.

Prof. Baiju B.S , MEA Engineering College

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