comparative HR Management

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Comparative International Management and Cultural Differences

The paper deals with Management, pparticulary with such its sphere as comparative and international management. The purpose of the paper is to analyse and consider critically the following statement.

“The utilisation of a country's nationals for the purpose of management decisions is said to be more favourable than managers from the parent company.”

The new global economy of the twenty-first century has transformed the economic, social, educational and political landscape in a profound and indelible manner. It is composed of a trilogy of interactive forces that include globalization, trade liberalization and the information technology and communications revolution. “Globalization has melted national borders, free trade has enhanced economic integration and the information and communications revolution has made geography and time irrelevant. The role and functions of entrepreneurship in the new global economy have taken on added significance and face compounded challenges. We live in a challenging environment of rapidly changing economic events, where the private sector has become the most important engine of economic growth and the public sector has shrunk in importance and influence. Entrepreneurs are defining the new rules of engagement on the economic landscape as they come to grips with contemporary challenges and new opportunities. In this new environment, entrepreneurs need to articulate a pragmatic vision, exercise effective leadership and develop a competent business strategy. They should create the synergies that will allow them to integrate the interactive ingredients of the new economy in order to enhance their competitive advantage. Their business strategy should embrace flexibility, a quick response time and a proactive approach to economic opportunities. This paper will also enumerate the entrepreneurial abilities, skills, competencies and perspectives that are essential pre-requisites for success in the new global economy of the twenty-first century. In short, the economic heartbeat of the new economy is the global entrepreneur with an international mindset.”(3)

Leading individuals and groups effectively is the key to managerial excellence. Yet, in an increasingly diverse and international work environment this is a formidable challenge. Managers today must understand the key trends shaping organizations. They must learn to thrive in a diverse, global, technologically driven, socially complex, 24/7 organizational environment. They must have a clear vision of the type of manager they would like to be and must acquire the skills to manage effectively. Successful global leaders must: 1) understand the major trends affecting work today, 2) have an acute sense of cultural diversity and of the interconnectedness of the world, 3) have a strong sense of self-awareness and must learn quickly from a variety of experiences, 4) build trust quickly and foster effective communication in a variety of organizational situations, 5) build teams quickly under many circumstances and across multiple cultural environments, and 6) take a proactive approach in managing their career progress. (4)

The expansion of the international communications of business dictates necessity of preparation of the modern managers who will be capable to carry out business contacts in conditions of intercultural business - environment. In industry advanced countries, which have entered process of globalization, a direction has already developed some decades received name of comparative management.

The comparative management is a part of the common theory of management, within the framework of which the representations are formed and the laws of interaction of the representatives of different cultures in control systems of the business enterprises are studied, both national, and multinational character, and on the basis of which the practical recommendations for management of multinational collectives can be produced. The overall objective of existence and development of comparative management as disciplines increase a management efficiency by business at the expense of the account and competent use by the managers of different levels of national-cultural features of behaviour subordinated both partners and the  same features actually of countries, in which their business is carried out. At the same time, besides the only economic purposes the comparative management certainly pursues also important social - political ends: its competent use promotes strengthening of trust and mutual sympathies of the people of different cultures.

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 If to summarize the main tendencies of development of the international business for last three - four decades, what is it necessary to recognize as the main and determining tendency of this development? Or more locally: what question, put by this development, is it necessary to recognize central, determining for understanding of prospects of the international business? In our opinion, it should be formulated in such a way:

What are the limits and opportunities of an effective utilization of national model of management from the point of view of efficiency of the international business in general and ...

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