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International Management Behavior Case Studies For MBA Students
International management is the process of handling business operations that are existed in more than a country. In simple words, it is all about managing the businesses in a diversified business environment with varied language, economic environment, political environment, and work culture. The legal framework also differs from one country to another. On several occasions, the management has to handle a diversified business environment in different parts of the same country. This is why handle international business is indeed a difficult job to handle.
The functions of international management professionals
Immense international competition has forced the business firm to change their fundamental management strategy for international and domestic business matters. Technological advancement, changing communication systems, shorter product life cycles, and various changing business aspects are increasing the significance of global management. The nature of the business values and targets is changing very fast. An international manager has to do the same elementary functions as the domestic manager, but an international manager needs to be adjustable in more dynamic environments as well as needs to be adaptable in changing global business environment.
An international manager has to perform the following basic functions:
- Planning: In global business planning, the essential aspect is how to perform a business globally. The international manager has a vital role in planning and making strategies in international business.
- Organizing: It is essential because a different country and different cultural environment need to be adopted. An international manager needs to be well versed in international business.
- Staffing: Hiring suitable employees and comply with the labor laws of the concerned country is essential in having the best team of human resources. An international manager needs to be conversant of the job market of the concerned nation.
- Directing: The differences in the cultures make it one of the most difficult works for an international manager. Staffs performance and attitude towards work and communication depend a lot on the prevailing work culture. An international manager needs to be more conversant with the norms and measure as well as how to link the work culture of employees with the organizational work culture.
- Controlling: Diversified work environment, legal framework, language barrier, and geographical differences make the controlling process very complicated. A knowledgeable international manager can adopt the best strategy for controlling international business. The controlling process is such a difficult job for an international manager.
Major challenges that a manager faces in multinational operations
The analysis states that managers of international corporations are confronted with various levels of challenges. The major challenges faced by an international manager while operating the global business is mentioned below:
Cross-cultural management challenges: It is a challenging one for the manager while performing the management of the global business operation. It is the challenge of cultural incompatibility faced by the managers in the global context. The culture of different countries varies from one another that often creates challenges for managers. Cross-culture management poses a significant level of threats to the manager in performing the management of their global operation because the values, policies, and norms are different across the different cultural environments. In international business, managers are required to devise a new strategy in creating adequate awareness in their target customers.
Ethical consideration: It is another major issue faced by the manager in performing the management of their business practices across the global market. International managers are required to take into consideration several important aspects related to ethics in performing the management of their business operations across global boundaries. Maintaining ethics is a difficult task for managers as the procedure, laws, policies, and regulations as prevalent in one country differs significantly from that of another, and these have overall higher chances of ethical issues to business.
Managing currency fluctuation: It is another challenge confronted by the manager in performing the management of a multinational management operation. International organizations have their business in more than one country, and this exposes them to the level of currency exchange rate risk. It is faced by the business from fluctuation in the currency, and this affects the profitability performance.
Leadership issues: A good leadership skill is crucial for global managers as they need to lead people from a different culture. The leader must make the proper evaluation of the environment and working conditions across the global business environment, and they are required to make an adjustment to their approach of managing employees by adapting a different leadership style.
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