International management and change Essay

When Pascal do this rural areament, globalization had yet to take place. People lived in contrastive societies remaining cut- take out from apiece other. Each auberge had its own comprehension of truth and reality. Then came along the advancement in technology obstetrical deli actually along inventions such as computer, internet and telecommunications reservation the world a global village. Perceptions started changing as nurture strike across the humankind happened at the speed of light.People from all across the globe started shargon their experiences with each other thus trim back the protestences in various stopping points. until now, the be of globalization has yet to reach its peak. Cultural differences still exist at heart antithetic societies and the level of information and technology is still heterogeneous about the globe. I would now highlight virtually distinguishing features of the focus styles of various surface areas.We describe that the belie fs and determine of people vary across various cultures. The Japanese scat out as a group and electric organisational musical arrangement is ground on community work. The reward system is based on the level of higher status and is as well group based. The organisational body structure is cooperation based whereas the Statesn organic laws oft are based on competitive style where individuals are rewarded based on their writ of execution levels. Similarly the guidance style of French is as well as very unlike from that of US.French follow a more(prenominal) inventive thinking pattern and do non like to adhere to grim rules and regulations. The European management style has some fundamental points that distinguish it from the Ameri dope management style. The European management style even differs within the European countries and two countries deserve a special focus France and Germany because, among other reasons, the bureaucrats in those countries have long been r egarded as mandarins by the field of public presidentship (Dogan 1976).European management style stool be classified into diverse clusters based upon Hofstedes cultural dimensions and Trompenaars and Hampden-Turners cultural variables (Goliath, 2004) tally to which European management style faeces be sub-divided into Anglo-Saxon culture (Ireland, UK, and USA), Nordic culture (Denmark, Nor steering, Netherlands, Sweden, and Finland), Germanic culture (Austria, Belgium, Germany, and Switzerland), Frankophile culture (France, Greece, Portugal, and Spain) and Italian culture. These cultures also differ greatly from the US and Japanese styles of management thus requiring unlike management practices.The hand for performance system can work with the European management style as employees in Europe are more often than not skill oriented and perform good work for better rewards. The cultural beliefs and values of Europeans are pretty more different from the people of US and hence t he marketing techniques used in Europe should be different from those apply in US. For example, Europeans are very much reluctant to providing personal information as compared to US customers also the credit card usage in Europe is dealably lower than in US (Heilbrunn, 1998).The entranceway of modern logo and implementation of matrix structure allowing a flatter organizational structure can work relatively better in the European agate line environment The caller-out operations in south-central America demand a completely different barbel as Latin American culture significantly differs from US culture in legal injury of communication process. The US culture emphasizes on completion of task and sentences are interpreted in their direct meaning. However Latin American society focuses on relationships and context of the communication may involve more than precisely the spoken reciprocations (Wederspahn, 2001).So the marketing and gross sales efforts in South American cannot be sampleized with the US practices since the Latin American customers die hard to perceive communication messages in a very different way from their US counterparts. The sassy logo can be forgod, til now introduction of a flatter organization with matrix structure may not be feasible in South America as the eccentric of culture prevalent in this society is not conducive to the on the job(p) of non-hierarchical organizations. If we study the culture of mettle eastboundern countries, it is found that the business practices once more differ significantly from those of US.The business is broadly speaking chaotic and based upon word of mouth rather than written agreements, the cultural values are mostly Islamic and respect for relationships is held supreme also the marketing regulations in pith Eastern countries are very strict as compared to US or occupy of the world (Kwintessential Ltd). The middle eastern management style is mostly authoritarian and based upon Douglas McG regors Theory X motivational leaders style (Daniel Workman , 2008). thus employees have pocketable or no motivation to work on their own and go forth perform provided when directed by the superiors. thusly bright motorcoachs from US and other westbound states often try to avoid working in Middle East and so they must first be provided beseeming cultural bringing up in authoritative styles thus enabling them to adapt to the management practices of the Middle East. The Australian business is more akin(predicate) to that of US as compared to the rest of countrys as described above. The language and dress code is pretty much similar. However, Australian society is strictly based upon egalitarian principle where nonentity like beingness bossed around. People dont like to consider others as superiors and at that place is almost no hierarchical system (Slideshare, 2009).So authoritarian style of management will not be welcomed in the Australian business. The meeting and negoti ation styles as well as the popular beliefs of the Australian society are pretty fuddled to the American beliefs. However according to a study on behavior of 35,000 managers from Australia and New Zealand, the Australian managers consistently try to avoid responsibilities and do not take initiatives (Gettler, 2002). indeed FES should provide cultural and leadership training to Australian manager before implementing any kind of central dodging.Discrimination issues also play in Australia that can put to work life for foreign managers very difficult. However, deep steps have been interpreted to strongly implement anti-discrimination laws. The business offices of front eminence managers are also changing in Australia as they are provided more and more freedom and responsibility (James Saville, & Mark Higgins, 1994). The sales and marketing strategy in Australia can be aligned with the US strategies relatively easy because of the similarity in both societies. So the dilemma of FES is choosing between centralize and de centralise approach.Centralization can be defined as, the stratum to which decision-making permission is kept at top levels of management. plot Decentralisation can be defined as, the degree to which decision making authority is pushed gobble up to lower levels of the firm (Schilling 2008). Both approaches have their own pros and cons. FES has seen large put upth over the years and has been expanding into new regions at a very quick rate. then the organization requires a large touchstone of flexibleness in its decision making that can be provided by a decentralized approach.However, due to rapid expansion, the organization requires tighter govern of finances and close monitoring of all its operations to reduce equals and contain quality. These measures can be fulfilld through a more centralized approach. So what approach suits FES bests can be determined by a cost benefit analysis where each advantage and disadvantage of dele gation authority has to be carefully analyzed in light of the company physical objects. Thus aligning the decision making process with the survey of the organization.A centralized approach can benefit the organization by significantly reducing the administrative cost related to employee management. Infrastructure handling will also be more efficient and it will be easier for the headquarter to align organizational goals with the practicable and departmental goals ( Dezaree Seeds, & Alan S. Khade , 2008). Centralized approach will also make reporting procedure simple resulting in standardized organizational policies. Thus in this way it will further help the organizational objective of flattening the organizational structure and in creation of a matrix organizational setup.A decentralized approach on the other hand can benefit the organization by providing flexibility and em precedenting employees at the divisional and functional level. As explained above, different regions in whi ch FES is operating have different working environments and the condition of vital force industry in Europe, Australia, Middle East, US and South East Asian regions are very different from each other. Thus decentralization of HR and marketing policies will allow the organization to cater to the customer needs in the ways most suited to limited regions.It will also allow greater topical anaesthetic control and the ability to act quick to gain local resources ( Dezaree Seeds, & Alan S. Khade , 2008). Decentralization will also allow the organization to better deal with the cultural conversion and provide training to the employees as and when the need arises. One thing that business, institutions, governments and key individuals will have to realize is spiders and starfish may look alike, scarcely starfish have a miraculous quality to them. Cut off the leg of a spider, and you have a seven-legged creature on your hold cut off its head and you have a dead spider. except cut off the subsection of a starfish and it will grow a new one. Not only that, that the severed arm can grow an entirely new body. Starfish can achieve this feat because, unlike spiders, they are decentralized every major organ is replicated across each arm (Beckstrom and Brafman 2008). The type of approach taken by FES depends upon the nature and present condition of the global energy industry. The energy industry around the world is in a continuous state of flux. As more and more energy companies around the world run private and become free from the control of state, the nature of arguing is changing (ExxonMobil, 2004).Demand for power is increasing at an exponential rate and the competition from private as well as government owned companies is fierce. In the power generation sector, each country has put uped different laws and duty rates for multinational organizations. Thus on a whole it seems wiser to maintain a decentralized organizational setup which is flexible enough to qui ckly respond to the changing conditions of the industry. FES should maintain its present functional structure by keeping the finance, production and HR departments centralized.However using the akin marketing and sales techniques all across the globe has a make out of negative implications. Thus allowing the regional marketing departments to work according to their specific environment is the best possible option. So in order to maintain decentralization in the marketing and sales department, the top management has to establish strong ties with all of its regional departments. A strong organizational culture based upon a clear vision and mission of the company should be communicated to all of its employees.Perhaps FES can create a cross model which allows centralization of decision making with respect to financial and meaning(a) managerial decisions and at the same time, the marketing campaign is allowed flexibility according to the specific needs of the region. A key concern fo r FES is to accord its rapid global growth. Power and gas generation has to be taken in new countries and new plants need to be setup. The international operations have expanded a lot and efforts must be made to consolidate the existing business while growing in new regions of the world.As part of the consolidation effort FES must pass on extensive employee training program instilling in each employee the vision and objective of the organization. The company should consolidate its major decision making power in the interrogationquarter thereby allowing walkquarter to maintain a close monitory system on all of its subsidiaries. By centralizing its finance and management activities, the company can also approve marketing budgets for different regions from its Headquarter, thus twist coherence in the finance and marketing goals.However the marketing and sales strategies for each region should be decentralized thus instilling greater flexibility and freedom among marketing departme nts to cater to their local markets. The pay for performance system can work smoothly in few of the regions but as explained earlier, some regions such as Middle East and some parts of South East Asian cultures demonstrate a more hierarchical structure and it will be extremely difficult to introduce pay for performance system in these regions.Also the parameters should be distinctly defined before introducing the pay for performance system in different regions. Because same results usually do not show same amount of performance in different regions. What kind of performance and what kind of pay should be decided and communicated to all regional offices. The parameters for monitoring performance should be based upon different standards for different regions. Similarly some of the major HR policies should be centralized but mostly HR of each region should be independent in choosing the who, what, when and where about its employees.For example, Middle Eastern region is very warm in su mmers as compared to the European region and the work habits and optimum level of work during different seasons is different for both these regions. Thus separate working policies should be established for each of the region. The R&D department should remain centralized at the American Head Office. As a centralized R&D approach is more in effect(p) for a company like FES which has not expanded business into a variety of categories (AB, 2001).However taking technological inputs from all across the globe may help the R&D department in improving its efficiency and effectiveness. Thus technological integration should be construct where all global units of FES are directly integrated with its Head Office and the information flow between Head Office and different regions should be quick and efficient. The production department should carry out its role from the center, managing the manufacturing process across the globe from the Head Office. So it can be seen that different aspects of F ES operations require different level of centralization and decentralization.Also different regions require different level of authority delegation based upon their internal environment and national cultures. It is relatively easier to introduce standard policies in Europe and Australia as both of these cultures are very similar to that of US. However, standardizing procedures across Middle East and South America is not a feasible option. The regional business units should remain decentralized as there should be some form of flexibility to make the decision making process quicker.The regional heads should be sent directly from the Head Office, however if some regions in Middle East are not being managed effectively by American managers, then leadership services of local managers should be availed after providing them extensive cultural training programs at the Head Office. The regional units should be linked to the Head Office through the hurried technology available so that there is no or little information gap between the center and regional units.Thus in light of the cultural differences prevailing in various regions of the world, the best suited approach should be to take a hybrid approach while showing some restrain in application of a centralized approach and making some variations in the standards for implementation in different regions. The integration of overall business can be achieved by proper use of technology and defining proper hierarchical system for flow of information between Head Office and various regional units.