Global Management

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

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Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Diosdado “Dado” Banatao

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

What kind of leader am I?

Engineering Management 1st Semester SY 2020-2021 Global Management

 Module 2.2: Global Management

Global Management
 the process of applying management concepts and
techniques in a multinational environment and adapting
management practices to different economic, political
and cultural environments

Global Engineer
 Human Skills (cultural and personal skills to work
effectively anywhere in the world
 Technical competence
 Conceptual (advancing objectives)

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Competencies of Global Leaders

 Strategic Mindset
 Customer Focus
 Analytical Thinking / Ability to Spot
trends
 Engaged and a Team-player
 Risk-taker
 Deep knowledge and Expertise

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Competencies of Global Leaders

 Strategic Mindset
 Customer Focus
 Analytical Thinking / Ability to Spot
trends
 Engaged and a Team-player
 Risk-taker
 Deep knowledge and Expertise

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Globalization
Globalization represents the global integration of
international trade, investment, information
technology and cultures.

Government policies designed to open economies

domestically and internationally to boost
development in poorer countries and raise standards
of living for their people are what drive globalization.

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

WHY SHOULD YOU LEARN ABOUT

INTERNATIONAL MANAGEMENT?
You need to learn about international management
because you may find yourself in any of the
following situations:
 dealing with customers or partners from
different cultures
 buying components, raw materials, or
services from foreign suppliers
 working for a superior from a foreign country
 working in a foreign subsidiary or for a foreign
firm located in another country

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

A way of managing employees in

international firms, which gives
primacy to the 'local' values or
host country values where
subsidiaries of multinational
enterprises (MNEs) are located.

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

THREE PRIMARY ATTITUDES AMONG

INTERNATIONAL MANAGERS
1. Ethnocentric - managers who believe that their native
country, culture, language, and behavior are superior
to all others.
2. Polycentric - managers who believe native managers
in foreign offices best understand native personnel
and practices, and so the home office should leave
them alone.
3. Geocentric - accept that there are differences and
similarities between home and foreign personnel and
practices, and that they should use whatever
techniques are most effective
Engineering Management 1st Semester SY 2020-2021
 Module 2.2: Global Management

WHY DO COMPANIES EXPAND

INTERNATIONALLY?
Firms expand internationally to take
advantage of:

1. Availability of supplies
2. New markets
3. Lower labor costs
4. Access to finance capital
5. Avoidance of tariffs & import quotas

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

HOW DO COMPANIES EXPAND

INTERNATIONALLY?
There are five ways to expand internationally:

1. Global outsourcing
2. Importing, exporting, and countertrading
3. Licensing and franchising
4. Joint ventures
5. Wholly-owned subsidiaries

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

WHY SHOULD MANAGERS UNDERSTAND

CULTURAL DIFFERENCES BETWEEN
COUNTRIES?
Culture is the shared set of beliefs, values,
knowledge, and patterns of behavior common to a
group of people

Misunderstandings and miscommunications in

international business often occur because of
cultural misunderstandings.

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

A way of managing employees in

international firms, which gives
primacy to the 'local' values or
host country values where
subsidiaries of multinational
enterprises (MNEs) are located.

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Japan and China belongs to

which type intercultural
communication?

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Intercultural communication
a form of communication that shares information
across different cultures and social groups. One
framework for approaching intercultural
communication is with high-context and low-context
cultures

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

High-Context Cultures
A high-context culture relies on implicit
communication and nonverbal cues. In high-context
communication, a message cannot be understood
without a great deal of background information.

Asian, African, Arab, central European and Latin

American cultures are generally considered to be
high-context cultures.

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

High-Context Cultures
Association: Relationships build slowly and depend on trust.
Productivity depends on relationships and the group
process.
Interaction: Nonverbal elements such as voice tone,
gestures, facial expression and eye movement are
significant. Verbal messages are indirect, and
communication is seen as an art form or way of engaging
someone.
Learning: Multiple sources of information are used. Thinking
proceeds from general to specific. Learning occurs by
observing others as they model or demonstrate and then
practicing. Groups are preferred, and accuracy is valued.

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Low-Context Cultures
A low-context culture relies on explicit communication.
In low-context communication, more of the information
in a message is spelled out and defined.

Cultures with western European roots, such as the

United States and Australia, are generally considered
to be low-context cultures.

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Low-Context Cultures
Association: Relationships begin and end quickly.
Productivity depends on procedures and paying attention
to the goal.

Interaction: Nonverbal elements are not significant. Verbal

messages are explicit, and communication is seen as a way
of exchanging information, ideas and opinions.

Learning: One source of information is used. Thinking

proceeds from specific to general. Learning occurs by
following the explicit directions and explanations of others.
Individual orientation is preferred, and speed is valued.

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

The Importance Of Understanding

Cultural Differences
Managers need to bridge cross-cultural gaps by
understanding basic cultural across four areas

1. Language - more than 3,000 different languages are

spoken in the world
2. Interpersonal space - how close people should be
when communicating varies by culture
3. Time orientation - time orientation varies by culture
4. Religion - Christianity has the largest following with 2.1
billion adherents, Islam is next with 1.3 billion followers,
then Hinduism, Buddhism, and Judaism

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Do I have what it takes to

embrace the challenge of
Global Management?

Engineering Management 1st Semester SY 2020-2021

 Module 2.2: Global Management

Your key
takeaways or
thoughts for
today’s session?

Engineering Management 1st Semester SY 2020-2021