18-08-2012, 11:39 AM
Global Manager
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Essential Competencies of a Global Manager
Various frameworks of global competencies exist, as shown in Table 2, however for the purpose of this paper a new framework will be proposed; one that takes the elements of the ‘global perspective’ into consideration. A literature review was undertaken to frame the key competencies deemed essential and specific to global managers. The framework integrates competencies that (i) refer to explicit and tangible information and ability necessary to accomplish a task; (ii) refer to the cognitive and behavioural abilities to utilise knowledge gained to successfully complete the assignment; and (iii) are fundamental personal characteristics that can impact on knowledge and skills development and action. These competencies are categorised into three meta-competency groups: (1) knowledge competencies; (2) interpersonal competencies; and (3) personal competencies.
Knowledge competencies
Knowledge competencies are concerned with factual information pertaining to a clear and deep understanding of technology, business, and industry required to complete tasks successfully. They are the basic building blocks for global managers’ journey towards a global perspective (Jokinen, 2005). The competencies in this section include technology savvy, international knowledge, cultural and cross-cultural awareness, business and industry savvy, global risk management, and best practice standards.
Technology savvy
The rapid onslaught of globalisation has been largely due to advances in technology interconnecting companies across the world. Goldsmith, Walt, and Doucet (1999) see technology savvy as a key competency for global managers as it significantly impacts the organisation’s core business. Technology is not only vital for communication, and effective information management, but also greatly impacts the organisation’s production processes. In the fast pace world of technology certain products, processes and services can be outdated very quickly. It is therefore necessary for global managers to not only be able to use technology, information systems and telecommunications effectively but also understand its impact by assessing and analysing the affect it has on the global operations of the firm (Kedia and Mukherji 1999). Technology solutions that may be pertinent to the global managers include Business Intelligence tools such as the SQL Server suite (Analysis Services, Reporting Services) and Oracle; and collaborative tools such as Microsoft Office SharePoint Server, Skype, Microsoft Groove 2007, Google Apps, and instant messaging tools such as MSN Messenger (P. Culmsee, personal communication. May 3, 2008). Solutions such as those listed above may not be required by all managers as it depends on the type of industry they are in, and the organisation itself.
International knowledge
Competency in this field means an understanding of the different socio-political and economic policies governing each country. A global organisation operates world-wide abiding by the rules and regulations that govern that particular nation. Therefore it is essential to clearly understand the structure of these systems, their decision-making processes, and how they impact business operations and those around them (Whitfield 2003). Subject matter such as international finance, international law, and comparative labour relations should be familiar to the global manager (Caligiuri 2006). Knowledge in this field not only assists in penetrating foreign markets distribution networks (Tan, Erramilli, and Liang 2001) and the smooth running of the business but it can be a competitive
advantage.
Take Procter & Gamble for example. In the early 1980’s, in their fight for higher margins from the pharmaceutical industry, Indian pharmacists nationwide targeted the company by boycotting Vicks products. Gurcharan Das, CEO of Procter & Gamble’s Indian subsidiary realised that the Vicks products contained all natural herbal ingredients, found in the age-old Sanskrit texts. Products compliant under this Ayurvedic system of medicine in India could be sold in food shops, general stores, and street kiosks. Das proved this compliance to the Delhi government and the local FDA and had the registration changed from Western medicine to Indian medicine. With the new registration, the company was able to expand its distribution channel beyond pharmacies and build a new plant for Vicks, enjoying the tax-advantages and lower labour costs (Das 1994, 197-210).
Cultural and cross-cultural awareness
This pertains to the understanding and appreciation of the country and its society’s norms, beliefs, rites, rituals, symbols, behaviours, motivations and stories. Effective global managers value and manage cultural diversity and consider this diversity an asset not a hindrance (Caligiuri 2006). Nardon and Steers (2008) state that many inter-culture assignments occur on short notice thereby giving managers limited time to learn about that particular culture, and intimate understanding of the cultural diversity may be difficult due to geography. In these circumstances cultural and cross-cultural awareness is learnt “on the fly”. Despite the obstacles, understanding this diversity will be of great benefit to the global managers.
Procter & Gamble will be mentioned again to illustrate this issue in relation to business. Das (1994, 197-210) noticed that the company had trouble selling Vicks Vaporub to Northern India, whereas sales in the South were high. He decided to capitalise on the high market sales in the South instead of attempting to correct the market in the North. The company profited. Das later discovered that the reason for the poor sales in the North was due to the fact that people in this region did not like to rub things on their body. Had Das ignored the market trend and decided to expend resources attempting to impose the product on the North, poor sales figures would likely have continued as products would remain on the shelves.
Business and Industry Savvy
Coupled with technology savvy, business acumen, a thorough understanding of the business and its industry is critical for achieving organisational goals and objectives (Parker 2005). Global managers must intimately comprehend not only the company’s business strategies, products, and resources, but also the structure of its global operations, worldwide market opportunities (Aycan 2001, 119-135; Osland 2001, 137-156) and competitive conditions (Osland 2001, 137-156). Bartlett and Ghoshal’s (1994, 77-91) role of the scanner will be required here to achieve this savvy. They will need to filter, analyse and interpret the scanned knowledge. This knowledge can then be communicated across the organisation and actioned. This breadth of understanding will assist the global manager to recognize as well as anticipate change (Parker 2005), stay on strategy, and find and overcome threats (Kedia and Mukherji 1999).