Подпись: "Новости научной мысли", 22-30 октября 2017, ЧехияЭкономические науки / 16. Макроэкономика

Irina V. Onyusheva, PhD, Prof.1

Mattunyoo Jordkoh, Int. MBA Program1

 

1Graduate School, Faculty of Business and Technology,

Stamford International University, Thailand, Bangkok

 

Key Countermeasures to Overcome Major Challenges in International Business Management

Key Words: Globalization, international business management, cross-cultural differences, challenges, countermeasures.

There are many situations that actually can happen in the international business management, so the company should understand big challenges and overcome those obstacles. International assignments are operated, so the company needs expatriates to manage important tasks in their subsidiaries. One person cannot work along, so they need multicultural team. Therefore, some of them will face with difficulties in term of language, culture, and other communication issues. 

When the businesses have grown up, they need to expand their market into other areas which have different interventions. At the same time, working conflict and resistance usually occurred toward hierarchy and authority. By these reasons, the possible strategies are divided into four main types which are adaptation, structural intervention, managerial intervention, and exit. These four strategies will help to overcome the multicultural problems.

Adaptation. It is about the ability to live with new environment and culture. Moreover, it also about acknowledging cultural gaps openly, so team members will assume responsibility for figuring out how to live with others. Generally, people want to protect their culture rather than integrate with others who are different. The expatriates need to aware of cultural differences and figure out how to live with that new environment (Brett, Behfar, & Kern, 2016). Different countries have different working styles and decision making and then it leads to the cultural confrontation. Thus, the negotiation for the balance is considered as a good option. They have to prepare themselves and study some background of new country that they go abroad.

Structural intervention. It is the way of organizing the team in order to reduce interpersonal friction. In the international business, teamwork is very important. Different people, who have different cultural backgrounds, will have their own ways to achieve the tasks. If team members are not carefully distributed, sub-groups or small group can strengthen preexisting differences (Brett, Behfar, & Kern, 2016). Some culture is isolated, but some culture is socialized. When they work together, some members have some negative stereotype to another. For example, some female Japanese are not want to participate in large group, and some of them do not like male superior.  They might refuse to participate, or they might shut down the meeting due to some emotional tension. Therefore, team and task can be subdivided in order to reduce the emotional tension.

Managerial intervention. It can happen due to the violation of hierarchy have resulted in loss of face. Additionally, it is about when the decision making that does not involve the team, but done by a manager. This situation related to the fluency in language because the language has an accent that difficult to understand (Brett, Behfar, & Kern, 2016). To solve this kind of challenge, the manager should intervene and carefully explain the task. The manager will set the rule and address the challenge directly to task that have to achieve. Also, members should ask questions when they are confused. 

Exit. It is about voluntary or involuntary removal of a team member when the emotions are running too high, and some situation lead to lose face too much (Brett, Behfar, & Kern, 2016). People have too extreme on their opinion, but they think differently. When one side cannot accept the reason of the other side, so one of them needs to change the team.  It is the big problem that some member decided to leave the team or the firm.

Managing Human Resources in International Organizations. In the international organization, human resource is really important to lead business to be successful. The opportunity should be achieved by people who have ability to manage both domestic and international environment. Managing subsidiaries across the different countries is difficult due to the human resource management issue. Thus, if company attempt to explore new market an opportunity, they need to adapt human resource management practice. Staffing policies in the multinational corporations are indicating about the process through the assignment of foreign task. There are three types of strategies for transfer of HR practices across different nations which are Ethnocentric, Polycentric, and Geocentric strategies (Tiwari, 2013). These three strategies have some positive and negative side, so it also depended on type of business, and leadership who has different experience.

The first one is an ethnocentric approach. It is used in MNC’s having international strategic orientation, and it involves sending employees from parent countries to the host country. The advantage side is that it can help to transfer core competencies when they do teamwork  (Tiwari, 2013). In this policy, it might cost some financial budget in order to provide training course and additional motivation to the employees who go overseas.

Secondly, it is a polycentric approach. It is the policy that are involved in hiring and promoting employees who are citizens of the host country  (Tiwari, 2013). The advantage of this approach is low cost of training or recruiting with less problems of communication because the employees come from same region. However, this approach will lead to the limitation of career mobility and isolation from foreign subsidiaries.

Thirdly, it is a geocentric approach. This approach is adopted when companies implement transnational orientation. Thus, employees are recruited based on their skills and experiences irrespective of their nationality. The MNC’s can hire the most suitable person right on the job, and follow the integrated global business strategy  (Tiwari, 2013). It is good that the company can use their human resources efficiently and build strong informal management and culture networks. On the other hand, it might use money and time to select the eligible candidates.

The selection and training of expatriates. It is one of important topics about how to should people to work overseas and how can company prepare those expatriates in new working environment. There are many situation involved to evaluate the success of international business operations such as job factors, relational dimensions, motivational state and family situation. All of these can overcome by training of expatriates  (Tiwari, 2013).  There are three main trainings which are cross cultural training, language training, and technical training.

1. Cross cultural training. It is the way to understand and appreciate of host country’s culture. Also, it requires clear communication with people from various cultural backgrounds and nationalities in order to increase positive outcomes of interactions.

2. Language training. The use of language and correct manner of communication including writing, verbal, and nonverbal communication.

3. Technical training. Some assignment is very unique and has specific requirement. Therefore, expatriates will have at least basic information about the task and discuss about the specific tips and strategies. They will have better prepare to effectively manipulate the problem.

Repatriates Management. Additionally, repatriation refers to homecoming of expatriates after they complete their assignment in a host country. Thus, repatriation management is considerable issue to think about. The repatriation adjustment program in order to help dealing with the change after expatriates experience reverse culture shock. It is the key to analyze how to make those expatriates feel warm when they come back home country--not likely to leave the company. Moreover, the repatriation management worth not only when employee returns but also when expatriation phase starts (Medatwal, 2014). Also, the successful completion of international assignment makes it sure for corporate growth prospects.

Managing Cross Cultural Communication. Culture is the foundation of communication. Different cultures actually have different way of communication. It is hard to communicate and work with other if they do not understand the culture (Kiss, 2005). Culture is complex concept, so there are six fundamental patterns of cultural differences.

1.                 Different communication styles: some words/phrases are used in different way and also the non-verbal communication.

2.                 Different attitudes toward conflict: the conflict sometimes is considered as positive but sometimes considered as something to be avoided.

3.                 Different approaches to completing tasks: working effectively on task, people have different way to complete it. Respect and relationship-building should go together with task.

4.                 Different decision-making style: the roles individuals play in decision-making vary widely from culture to culture.

5.                 Different attitudes toward disclosure: some culture does not accept the revealing of feeling or emotion, so it might lead to misunderstanding.

6.                 Different approaches to knowing: people have different way to know things and to judge what is right or wrong.

Conclusion. All in all, the managing multicultural teamwork is really important as well as the way of communication which is essential factor to understand. The developing of global awareness among team members will help to improve relationship, so they will work together well. The number of problems can happen anytime due to the misunderstanding and ineffective adaption. When people try to accept and respect of different cultures, they will gain new opportunities and experience. Importantly, they might learn new way to solve problem and make better decision making.

 

References:

 

  1. Jordan, A. (2012). Cross-cultural Differences in Management. International Journal of Business and Social Science.

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3.      Khaleej Mag. (2017). Political Factors Affecting Businesses That You Need To Know. Retrieved from Khaleej Mag: http://www.khaleejmag.com/business/political-factors-affecting-businesses-need-know/

4.      Kiss, G. (2005). Managing cross-cultural communication challenges toward a more perfect union in an age of diversity. Miklós Zrínyi National Defence University, Budapest, Hungary, 215-223.