Leadership competencies and attitudes for success in globalization

Leadership competencies and attitudes for success in orbicularizationUnderstanding of external interaction is essential for transnational nerves to have effectively in todays globular furrow milieu. The level of this to a lower placestanding is connect to possession of external competencies inside an presidential term (Gupta and Govindarajan, 2002). Although the need to develop leaders with adequate competencies has produce unam fine-lookinguous in recent yrs (Adler and Bartholomew,1992 Brake et al., 1995 Brake, 1997 Morrison, 2000 This source has not been include in the reference appoint Bonnstetter, 1999 Suutari, 2002), at that fleck is still a earthshaking gap between the planetary human resource requirements of outside(a) strategies and their recognition (Adler and Bartholomew, 1992 Engle et al., 2001, Morrison et al., 1999).The process of identifying shopping center competencies usu every(prenominal)y entails having employees identify core competencies by watch out and assessing corporation-critical resources, capabilities, and competencies three factors comm tho referred to as associated concepts. In the identification process these concepts lots become conceptually and empirically merged, something that occurs in strategic attention explore too, when these associated concepts be defined inter flip-flopably. For example, capabilities and competencies be defined inter shiftably by Spanos and Prastacos (2004). Further a lottimes, miscellanea and complexity increase in a interior(prenominal) pissing environment as line works become more worldwide. The dynamics, complexity and transplant now characteristic of spherical environment atomic number 18 diffusing into the domestic environment (Gregersen et al., 1998 Harvey and Buckley, 2002) making increasing demands on draw a managementment and lead competencies at all plaqueal levels. Therefore, increasing understanding of diametric aspects of internationalization and interrelationships of sundry(a) factors and their changes will help organizations to meet the new challenges brought by globalization, whether their primary operation environment is domestic, international or global. Employees need to take c ar approximately coating and cross- cultural communication if they are to work effectively with minorities within their give up society or with foreigners encountered at home or abroad (Harris and Moran, 1987, p. 56).The ripening of global competencies should be establish on the global business outline which determines what kind of global presence is desirable, how galore(postnominal) and what types of international or global seams, projects, task forces, and opposite types of interactions exist (McCall and Hollenbeck, 2002). Competency organic evolution process should scrawl from an analysis of the dynamics of the global business environment and the core competencies, go on to identifying the profiles of necessary human resou rces and ending with identification of necessary competencies for specific jobs/functions. at virtuoso while the specific leader competencies have been place, the next step is to general anatomy work bench strength effectively (Brake, 1997 Gregersen et al., 1998). The other assumption is that global leaders have just veritable their ( common) competencies into a higher (global) level. Bartlett and Ghoshal (1992), and Baruch (2002) argue that there is no overmuch(prenominal) thing as a global manager, or any universal criteria for global managers. Instead, Bartlett and Ghoshal see global commission as being a task of a ne cardinalrk of specialists including business managers, country managers and functional managers.Yet, they educe that the top executives are the leaders who manage the complex interactions between the three types of managers, and they essential understand the strategic grandeur of each specialist. The major(ip)ity of the search on international assignme nts and positions has been research close expatriates. Some authors have stated explicitly their focus being on global managers/leaders and yet, discuss issues link up to the target country such as cultural distance. However, a global leader (or manager) is not needs an expatriate, and vice versa. The abide by of an expatriate assignment as a major develop psychogenic experience for those pursuing global career is widely acknowledged.Therefore, and because of scarcity of pure global leaders literary works, expatriate literature as wellhead as general leading literature is pertinent as well as when examine global leaders. Overall, the previous research on global leadership competencies has been discharge and more synergistic research is needed, together with a more comprehensive theoretical framework, to understand the processes and interactions underlying the development of a global leadership potential (Tiina, 2004).This cover attempts to take a step towards such fra mework, auxiliary data was collected based on the purpose of published papers, articles and books perior studeis , the human race wide web , existing global leadership and other related literature, these data was analyzed and disscussed to combine findings and suggestions provided in previous literature in a more integrative framework of global leadership competencies and attitudes. The organise of the paper is as follows The terminology use in the international/global leadership ,literature is look backed and discussed first and the more integrated framework was set forth in the chapters that followed. The results identefied 12 competanceie as an assessment and intepret tools to provide an opportunity for experts to reflect on the structure of their company or organisation and to rate the CEO, incarnate staff, secondary general manager and staff, as well as all employees in general. hence indicated whether the competency is essential, useful or not necessary for the CEO, corporate staff, subsidiary general manager and staff, and all employees, in order for the trans unionizeational goal to be realised and to make globalisation work.Litreture reviewThe main outcomes of previous researchRecent research supports the idea that there are a limited number of advert competencies, over and higher up the contextual whizs, that predict easy behavior in a global environment (Jordan and Cartwright, 1998 Gregersen et al., 1998). As was already menti hotshotd earlier, most of the previous research regarding international competencies has been done on and among expatriates, tho much of this research is also relevant when news reporting global leaders. Harris and Moran (1987, pp. 226-227) review of earlier literature produced nearly 70 dimensions of overseas success of which 21 are given priority as being more central for foreign employment. However, this listing focuses on filling specific expatriate positions, including many practical and contextual po int in times such as adapt competency of spouse, promot king, interest in emcee finale etc. Harris and Moran (1987) focus on cross-cultural interaction and suggest that the main outcomes of cross-cultural preparation rouse also be apply as selecting criteria for overseas service.These are empathy, openness, persistence, sensitivity to intercultural factors, respect for others, reference flexibility, gross profit margin of ambiguity, and a two- counseling communication skill. Srinivas (1995) defines eight components of global mental faculty which form the base for competencies needed to meet the challenges organizations/ man-to-mans face especially when entering a global environment. The components are curiosity and concern with context, acceptance of complexity and its contradictions, regeneration consciousness and sensitivity, seeking opportunity in surprises and uncertainties, faith in organizational processes, focus on continual improvement, extended time perspective, and systems thinking. Rhinesmith (1996) has identified vi characteristics of global mindset that lead to global competencies. These are bigger, broader picture ( jumper cable to managing competitiveness), rapprochement contradictory demands and needs (managing complexity), trust in networked processes, rather than in hierarchic structures (managing adaptability), valuing multicultural squadwork and diversity (managing groups), flow with change/seeing change as opportunity (managing uncertainty), and expanding knowledge and skills, being open to surprises (managing learning). In the same line, Rosen (2000) maintains that globally literate leaders possess four global literacies. These include personal, social, business, and cultural literacy. Jordan and Cartwright (1998) maintain that the key to international success lies in a alloy of personality characteristics and managerial competencies.Managerial competencies include relational abilities, cultural sensitivity, lingual abili ty, and ability to handle stress. Conner (2000) also identifies a number of skills and capabilities needed by leaders working in a global company, organizing them under sextuplet headings business savvy, ability to use personal influence, global perspective, firm character, ability to motivate masses, and entrepreneurial behavior. Mumford et al. (2000) have defined five categories of leadership skills for the ever-changing creation. In addition to social judgment skills, social skills, and creative hassle solving skills leaders need four types of knowledge knowledge related to task, business, organization and people. Resources and the process of identifying core competencies usually entails having employees core capabilities by s hind end and assessing company resources, capabilities, and competencies ,three factors coming referred to as associated concepts .in the identification process these concepts often become conceptually and empirically merged, Something that occurs in st rategic management research too. For example, capabilities and competencies are defined by Spanos and Prastcos (2004) and capabilities by Peteraf and Bergen (2003) and Ray et al. (2004), and skill, competence. Other scholars, however, have more usefully distinguished these associated concepts (Branzei and Thornhill, 2006 Savory, 2006 Ljungquist, 2008). Were are the first three items? The fifth item is willingness to exercise these skills. Caligiuri and Di Santo (2001) have glide slopeed the desired competencies from a company perspective and identified eight desired developmental dimensions for global leadership programs ability to transact business in another country, ability to change leadership hyphen based on the maculation, knowledge of the companys worldwide business structure, knowledge of skipper adverts worldwide, knowledge of international business issues, openness, flexibility, and ethnocentrism (getting away from it). Spreitzer et al. (1997) focused on finding cand idates for those leadership programs, individuals possessing global leadership potential. They have identified 14 dimensions or themes underlying success as an international executive, making a come somewhat distinction between the end-state skills and the ability to learn from experience. Jehad (2009) identified that the core competencies had a large impact on competitive advantage. Goh (2010) examines how to improve the flavor of harvest-tides and services in the age of globalization reviwing the traditional concepts and the six segma framework, ilustrates how paradigram shifts must affect to achieve real gains in quality.The competencies needful for globalisationThe above disscussions and further review of relavent litreture is indicated (12) organizational and individual competencies required to make globalisation work have been drawn up (Fig.1). These competencies will be described and developed in this and the hobby three chapters.these competencies are described into the trim back the stairs table as a finding of such review and also in the dissucssions follows.AttitudesPossesses a global mindsetWorks as an able with persons of diverse backgroundsHas a semipermanent orientationLeadershipFacilitates organisational -changeCreates learning systemsMotivates employees to justicelnteractionNegotiates and approachesb coflicts in a collaborative modeManages skillfully the foreign deployment roulette wheelLeads and participates effectively in multicultural teamsCultureUnderstands their protest cultural set and assumptionsaccurately profiles the organizational and national culture of othersAvoids culture mistakes and behaves in an seize manner in other countriesFig. 1. Twelve organizational and individual competencies (source developed by the authors)Studies conducted with companies and individuals have demonstrated that organisations and people can successfully change. Self-initiated change (I want to learn this skill) and professionally facilit ated change have both been successful. How change occurs is not well understood, and this report is not intended to answer the enquire of how organisations and individuals change. Our purpose is to identify the competencies and to suggest strategies for acquiring them.Conceptual model of studyFigure 2 below summarises the 12 external environmental factors, leading to globalisation and the 12 organisational or individual competencies required to succeed in globalisation within the organization.External ForcesEconomies ofscaleNew and evolving marketsGlobal sourcingReduced tariffs/ tradition barriers and tax advantagesHomogeneous technical standardsLoweredglobal transportation costsIncreased telecom options at reduced costsTrend toward homogeneous demand for products competitor from international CompetitorsCustome stratey changes fromdomestic-only to globalExchange rate exposureAccelerating rate of proficient changeGLOBAL organizational competenciesVision Strategy StructureCompete ncies required to make organization workAttitudes- Possesses a global mindsetHas the ability to work as equals with persons of diverse backgroundHas a persistent-term orientationLeadershipFacilitates organizational changeCreates learning systemsMotivates employees to excellenceInteractionNegotiates and approaches conflicts in a collaborative modeManages skillfully the foreign deployment cycleLeads and participates effectively in multicultural teamsCultureUnderstands their own culture values and assumptionsAccurately profiles organizational culture and national culture of othersAvoids cultural mistakes and behaves in a manner that demonstrates knowledge and respect for the way of conducting business in other countriesFig. 2. Globalisation forces and competencies (source developed by the authors)Competency 1. Process a global mindsetAttitudes are learned and therefore can be unlearned. A global mindset is an attitude it is not knowledge or information. We learn to be ethnocentric, an d we can learn to be global in our perspective. outlooksMindset is a word that rarely is used in daily conversation. Websters cyclopaedia Unabridged Dictionary of the English Language, containing over 250 000 entries, does not list it. A smaller Websters dictionary defines mindset as a fixed mental attitude.(Fishers, 2000) excellent book Mindsets The Role of Culture and Perception in International Relations demonstrates the importance of possessing a global mindset to succeed in the globalisation process. Individuals working in foreign countries share similar experiences in overseas assignments and must not only meet the requirements of their work assignments, scarce also be able to adjust to unfamiliar attitudes and psychological predispositions. They must function within the expectations of the host culture. In other words, they must work across tell apart mindsets which reflect differences in national experience and culture, fit to (Fisher, 2000).To date, no comprehensive st udies have been conducted on the slipway in which contrasting mindsets affect international business relationships and transactions. The tuition of most managers has provided only severe business skills, such as engineering, finance and strategic planning. Fisher suggests the destiny of providing global managers with additional training in the social sciences, as it is not sufficient to provide a person only with facts and information about unfamiliar cultural practices.Global mindsetsRhinesmith (1996) correctly postulates that a global mindset is a requirement of a global manager who will sharpen institutions and organizations into the future. He defines a mindset as a predisposition to see the world in a particular way that sets boundaries and provides explanations for why things are the way they are, while at the same time establishing guidance for ways in which we should behave. In other words, a mindset is a imbue through which we look at the world.Rhinesmith states that p eople with global mindsets approach the world in a number of particular ways. Specifically theyLook for the big picture that is, they look for multiple possibilities for any withal offt or occurrence-they arent contented with the obvious.Understand that the rapidly changing, interdependent world in which we are sustenance is indeed complex.Are process-oriented in our experience this is the most weighty dimension, and the one that is most lacking in individuals who are not globally oriented. go steady diversity as a resource and know how to work effectively in multicultural teams.Are not uncomfortable with change or ambiguity.Are open to new experiences.Ethnocentricity vs geocentricityContrasted to the individual with global mindset is the one who is ethnocentric. Ethnocentricity is defined by the Random House Dictionary as touch sensation in the inherent superiority of ones own group and culture it whitethorn be accompanied by feelings of contempt for those others who do not locomote it tends to look down upon those considered as foreign it views and measures alien cultures and groups in term of ones own culture. A framework developed to illustrating ethnocentrism (Fig. 3). Not only individuals, precisely also organisations can be ethnocentric (This source has not been include in the reference list Stephen Weiss and William G. Stripp 1993).The ethnocentric organizations tend to use home-country personnel in key positions throughout the world, believing they are more keen and capable than foreign managers (Harris and Moran, 2003).Attitudes toward themselves and their groupsAttitudes toward othersSee themselves as virtuous andSee their standards of value as universal and intrinsically trueSee themselves as strongBelieve outgroup is inferior superiorBelieve outgroup is weakDistrust outgroupsFig. 3. modeling of ethnocentrism (source )In this case, superiority is not equal to nationality, and all groups can sacrifice to the organisations effectiveness. The culture shock inventory, was designed to measure individual ethnocentrism, or the tier to which individuals perceived their value system to be appropriate for others.Attitude changeWith globalisation, contact between persons from different cultures increases. What happens when this occurs? Do individuals become more global or more ethnocentric?Following a review of the literature on intergroup contact, This source has not been included in the reference list Amir concluded that the direction of attitude change, following contact with people who are different, depends largely on the conditions under which the contact has taken place He indicates that there are favorable conditions, which reduce prejudice, and unfavorable ones, which may increase prejudice (Kenneth, 1974).The favorable condition of equal status as a factor in trim down prejudice was reported by This source has not been included in the reference list Allport. He pointed out that, for contact between groups to be an element in reducing prejudice, it must be based on equal status contact between majority and minority groups in the pursuit of common goals. Organisations that are globalising must have common goalsCompetency 2 Works as an equal with persons from diverse backgroundsThis section focuses on working women, since the number of women in the hands worldwide has dramatically increased since 1950. We are fully mindful that diversity in the workforces of many countries is also reflected in a significant increase in the numbers of Third and Fourth World immigrants, the physically challenged, senior citizens and others. Generally, the following workforce trends have been identified (Moran and Harris, 2003)By the year 2000, women will comprise just under 50 per cent of the UK workforce.By the year 2000, non-whites will make up 20 per cent of the UK workforce. great numbers of immigrants are coming to the joined Stares than at any time since World War 1.A greater portion of the US workforce is middle-aged, and the workforce is gradually getting older.The demographics of the workforce in most countries are changing. This is reflected in the development of seminars and workshops on cultural diversity in the United States and other countries. Five years ago these seminars were unheard of, or else, when conducted, they were under the rubric of affirmative action.* What does the note mean?Competency 3. Has a long orientationThere are many reasons why companies have not been successful in competing in the global marketplace. One of these reasons is shorttermism. Dick Ferry, the president and co-founder of Korn/Ferry, addresses this issueCorporate America may talk, on an intellectual level, about what itll take to succeed in the twenty-first century, that when it gets right down to decision making, all that matters is the next quarterly earnings report. Thats whats driving much of the system. With that mind-set, everything else becomes secondary to the ability to deliver the next quarterly earnings push-up. Were on a treadmill.Competency 4. Facilitates organisational changeThis section will cover two main pointswhat some academics and business people say about organisational change, and(2) how they commend managing these changes. We present several perspectives, as it is our belief that no one individual has all the answers, strategies or methods to facilitate change.Competency 5. Creates learning systemsThis source has not been included in the reference list Peter Senge said it go around in his book, The Fifth Discipline The organizations that will truly excel in the future will be the organisations that discover how to tap peoples commitment and capacity to learn at all levels in an organisation.Competency 6. Motivates employees to excellenceThe pronoun bear witnessAn operative word in UK organisations for the past several years is ,empowerment. Our employees are empowered, says an executive from a different Fortune 500 company, this one thrivi ng in turbulent times. Perhaps an crucial difference between the two organisations may be determinedFor six months now Ive been visiting the workplaces of America, administering a simple test. 1 call it the pronoun test. 1 ask front-line workers a few general questions about the company. If the answers 1 get back describe the company in terms like they, or them, 1 know its one kind of company. If the answers are put in terms like we, or us 1 know its a different kind of company.It doesnt much matter whats said about the company. Even a statement like, they end for high quality here suggests a workplace that hasnt yet make the leap into true high performance. It isnt yet achieving ever higher levels of quality, productivity and service. Only we companies can do this (Rhinesmith, 1993).Competency 7. Negotiates and approaches conflicts in a collaborative modeThe material describing this competency is drawn from many excellent sources but primarily from the managing cultural differen ce How to negotiate with japans? Managing cultural synergy and develop the global organization (Black et al., 1999) To make globalisation work, we need to negotiate and approach conflicts collaboratively. Skillful international business negotiators know more than, and behave (act) differently from non-skillful negotiators.Competency 8. Manages skillfully the foreign deployment cycleIt has been estimated that American corporations and government overstep about $50 billion each year in education and training. The goal is to improve the performance of the individual, thus enhancing the operating performance of a company or the government. jay Duffy, manager, employee development, for a division of a large global company, believes training may be a solution if one of the following four situations exists (Hershock, 1993)1. A gap exists between the skill level and the current position requirement.2. The tasks of a present position need to be performed differently.3. The job has change d or will change.4. Future positions may require different or additional skills.The gap between job requirements and the skill of the employee was demonstrated in research conducted and reported by Kathleen Miller (Conference Board, 1992) among others.Competency 9. Leads and participates effectively in multicultural teamsHigh performance teams, team work, worldwide global product teams and other words expressing similar ideas are commonplace in the management literature today. Stories of teams producing remarkable accomplishments are well known. Well functioning teams can increase productivity and creativity. However, functioning skillfully on a team is a learned skill. The Conference Board addresses the problemThe CEO must be fully committed to globalisation and must actively and persistently drive the globalisation process. Chief executive commitment is more important than international experience and background. It is essential that the CEO understands the issues (e.g. culture, h uman resources, empowerment) and translates commitment into actions. voice communication alone will not drive the process.Second, a core team of managers with an international background must be available in the organization before anything can happen. These managers must bring international culture and international experience to energise the globalisation process (Suutari, 2002).The process of building an international team large enough to permeate the entire organisation is long and arduous. It requires years of training, attention to recruiting, career development, and job rotations through foreign assignments. The role of multicultural teams in the globalisation process is well recognised.Competency 10. Understands their own culture, values and assumptionsKnow thyself Socrates.Global managers from one country have to work and negotiate with their global counterparts regularly. A common requirement is that they must each be able to communicate effectively and work with individu als who have been socialized in a different cultural environment, and whose customs, values, lifestyles, beliefs, management practices and other important aspects of their personal and professional lives are different.A European executive during a personal conversation said, I cant think of any situation in my 25 years of international experience when international business was made easier because people from more than one country were participating. (Fisher, 2000). A global manager must be aware of the many beliefs and values that underlie his or her own countrys business practices, management techniques and strategies.Competency 11. Accurately profiles the organisational culture and national culture of othersCorporate culture is the way of life of an organisation the recent studies of many large organizations, they concludedCorporate culture can have a significant impact on a firms long-term economic performance.Corporate culture will probably be an even more important factor in determining the success or failure of firms in the next decade.Corporate cultures that inhibit strong long-term financial performance are not rare they develop easily, even in firms that are full of reasonable and intelligent people.Although tough to change, corporate cultures can be made more performance-enhancing (Adler, 1992)Competency 12. Avoids cultural mistakes and behaves in a manner that demonstrates knowledge of and respect for other countriesSkillful international managers have learned to see the world differently and to understand the way others manage and do business. This implies that there is no single way of doing anything and that no one culture is perfect or complete in all aspects. Successful communication with other cultures means not judging customs, rituals or ways of doing business as ridiculous, or inferior to ones own. A Swedish executive of a large multinational corporation expressed it this way We Swedes are so content with the quality of our products and the Swedish way, that we forget that 99 per cent of the rest of the world isnt Swedish. (Pritchett, Pound,1992).ImplicationsThe major aim of this paper was to review global leadership competency frameworks suggested in previous literature and to build a more integrative competency framework to be used in future research. Some general issues related to global leadership research were discussed first, and the more integrated framework was described in the chapters that followed. notwithstanding the large number of studies carried out on critical success factors for international (in most cases expatriate) assignments there are only very few based on empirical research, attempting to test the validity of different items and the reliability of different measures. Results from previous studies accumulate into a long list of competencies characterized by only minor semantic differences of a much smaller number of key competencies (see also Jordan and Cartwright, 1998). Practically no long itudinal research has been reported that would support the relevancy of different competencies defined.As a result, there is little commensurateness among researchers on the definition of global competence, its antecedents or outcomes. From human resource development perspective, this framework may provide the base for planning international training activities where the fundamental questions to be answered is in what type of competencies development is needed for, knowledge, skills and abilities, or other characteristics? Competencies have been defined with terms describing certain personal traits, behaviors, skills, values, and knowledge, and many existing frameworks are combinations of these. In existing research, different types of dimensions have often been mixed and treated as equals.A certain trait in one framework is replaced with corresponding behavior in another. Generally, selection of relevant competencies has generated much argument since the relevance of competencies is commonly seen to vary with the task and organization involved McBeath (1990), Baruch (2002), Evans et al. (1989). In this paper global leadership competencies are seen as those universal qualities that enable indi