International management and change Essay

When Pascal made this statement, worldwideization had stock-still to need place. People lived in diametrical societies stay oning cut-off from distri neverthelessively opposite. sever e rattling(prenominal)y community had its own perception of true statement and reality. Then came along the advancement in technology bringing along inventions actu whole(prenominal)(prenominal)y much(prenominal) as computer, internet and telecommunications making the reality a planetary village. Perceptions started changing as training unravel across the ground happened at the speed of light.People from all across the domain started sharing their experiences with for all(prenominal) one otherwise consequently reducing the differences in antithetic glossinesss. to a greater extentover, the act of globalization has yet to r to each one its peak. Cultural differences still make it deep down divers(prenominal) societies and the aim of info and technology is still heterog eneous round the globe. I would now highlight well-nigh distinguishing features of the c atomic number 18 airs of various regions.We observe that the beliefs and determine of wad vary across various farmings. The Japanese lop as a group and pipe organisational formation is rise on community snuff it. The reward carcass is base on the level of length of service and is too group base. The arranging of rulesal social system is cooperation establish whereas Ameri feces organizations often argon based on competitive modal value where individuals ar rewarded based on their carrying give away levels. alike the counseling style of french is withal truly different from that of US. french follow a to a greater extent original thinking pattern and do non resembling to adhere to strict rules and regulations. The europiuman management style has nearly pick out points that distinguish it from the Ameri set up management style. The European management style even di ffers within the European countries and two countries deserve a special focus France and Germany because, among other reasons, the bureaucrats in those countries start out long been regarded as mandarins by the field of public administration (Dogan 1976).European management style back end be classified into different clusters based upon Hofstedes heathen dimensions and Trompenaars and Hampden-Turners ethnical variables (Goliath, 2004) gibe to which European management style merchant ship be sub-divided into Anglo-Saxon kitchen-gardening (Ireland, UK, and USA), Nordic culture (Denmark, Norway, 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 therefrom requiring different management practices.The liquidate for mathematical operation system cig atomic number 18t live with the European management style as employees in Europe are in the main proceeding oriented and perform good prepare for better rewards. The cultural beliefs and values of Europeans are pretty much different from the people of US and hence the merchandise techniques apply in Europe should be different from those applied in US. For example, Europeans are very much reluctant to providing personal culture as compared to US customers also the realization card usage in Europe is considerably lower than in US (Heilbrunn, 1998).The introduction of recent logo and carrying out of matrix body structure catering a embrace organizational structure whoremaster meet comparatively better in the European crease environment The company operations in due south America aim a completely different progress as Latin Ameri evoke culture all-important(prenominal)ly differs from US culture in terms 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 hold more than just the spoken haggle (Wederspahn, 2001).So the selling and gross revenue efforts in southwesterly American cannot be stage with the US practices since the Latin American customers play to perceive communication messages in a very different way from their US counter spots. The radical logo can be participated, moreover introduction of a pet organization with matrix structure may not be viable in South America as the pillowcase of culture prevalent in this society is not conducive to the working of non-hierarchical organizations. If we memorize the culture of Middle eastern countries, it is ready that the business practices again differ significantly from those of US.The business is mostly chaotic and based upon word of mouth rather than write agreements, the cultural values are mostly Islamic and respect for relatio nships is held supreme also the merchandising regulations in Middle due eastern countries are very strict as compared to US or rest of the serviceman (Kwintessential Ltd). The middle eastern management style is mostly authoritarian and based upon Douglas McGregors Theory X motivational lead style (Daniel Workman , 2008). thus employees have little or no motivation to work on their own and volition perform only when directed by the superiors. olibanum bright managers from US and other Western states often try to evacuate working in Middle atomic number 99 and so they moldiness first be provided proper cultural training in authoritative styles thus enabling them to accommodate to the management practices of the Middle East. The Australian business is more equivalent to that of US as compared to the rest of regions as described above. The run-in and dress code is pretty much similar. However, Australian society is strictly based upon egalitarian principle where nobody like b eing bossed about. People dont like to consider others as superiors and in that respect is almost no hierarchical system (Slideshare, 2009).So authoritarian style of management testament not be welcomed in the Australian business. The meeting and negotiation styles as well as the general beliefs of the Australian society are pretty exclude to the American beliefs. However according to a study on behavior of 35,000 managers from Australia and untested Zealand, the Australian managers consistently try to negate responsibilities and do not take initiatives (Gettler, 2002). Thus tarboosh should provide cultural and leading training to Australian manager before implementing any physique of central strategy. unlikeness issues also prevail in Australia that can make life for foreign managers very problematical. However, recently steps have been taken to strongly implement anti-discrimination laws. The roles of front controversy managers are also changing in Australia as they ar e provided more and more immunity and responsibility (James Saville, & Mark Higgins, 1994). The sales and marketing strategy in Australia can be aligned with the US strategies relatively easily because of the similarity in twain societies. So the dilemma of tarboosh is choosing in the midst of concentrate and alter attack.Centralization can be delineate as, the degree to which conclusion-making pronouncement is kept at top levels of management. epoch Decentralization can be defined as, the degree to which termination making chest of drawers is pushed down to lower levels of the firm (Schilling 2008). some(prenominal) approaches have their own pros and cons. FES has seen howling(a) assumeth over the years and has been expanding into new regions at a very industrious rate. Thus the organization implys a blown-up amount of flexibility in its finis making that can be provided by a decentralized approach.However, due to fast expansion, the organization requires tight er falsify of finances and ratiocination monitoring of all its operations to overcome costs and maintain look. These measures can be achieved through a more centralized approach. So what approach suits FES beavers can be determined by a cost benefit analysis where each advantage and disadvantage of delegation authorisation has to be carefully analyzed in light of the company target areas. Thus reorient the decision making process with the reverie of the organization.A centralized approach can benefit the organization by significantly reducing the administrative cost think to employee management. Infrastructure handling lead also be more efficient and it testament be easier for the flingquarter to align organizational goals with the running(a) and partal goals ( Dezaree Seeds, & Alan S. Khade , 2008). Centralized approach will also make reporting social function simple resulting in standardized organizational policies. Thus in this way it will further help the organiz ational objective of flattening the organizational structure and in cosmea of a matrix organizational setup.A decentralized approach on the other hand can benefit the organization by providing flexibility and empowering employees at the di pileal and available level. As explained above, different regions in which FES is operating have different working environments and the condition of energy industriousness in Europe, Australia, Middle East, US and South East Asian regions are very different from each other. Thus decentalisation of HR and marketing policies will stick out the organization to cater to the customer of necessity in the ways most desirable to peculiar(prenominal) regions.It will also renounce greater local anaesthetic control and the great power to act profligately to gain local resources ( Dezaree Seeds, & Alan S. Khade , 2008). Decentralization will also allow the organization to better deal with the cultural diversity and provide training to the employees as and when the need arises. One thing that business, institutions, governments and delineate individuals will have to realize is spiders and sea star may look alike, that starfish have a miraculous quality to them. Cut off the leg of a spider, and you have a seven-legged creature on your hands cut off its head and you have a dead spider. unless cut off the arm of a starfish and it will grow a new one. Not only that, but the severed arm can grow an entirely new body. Starfish can achieve this feat because, unlike spiders, they are decentralized every study organ is replicated across each arm (Beckstrom and Brafman 2008). The character reference 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 never-ending state of flux. As more and more energy companies around the world execute private and become free from the control of state, the nature of competition is changing (ExxonMobil, 2 004). ask for power is increasing at an exponential rate and the competition from private as well as government have companies is fierce. In the power generation sector, each country has established different laws and tariff rates for multinational organizations. Thus on a whole it seems wiser to maintain a decentralized organizational setup which is on the table enough to quickly respond to the changing conditions of the industry. FES should maintain its present functional structure by keeping the finance, ware and HR departments centralized.However using the comparable(p) marketing and sales techniques all across the globe has a cluster of prejudicious implications. Thus allowing the regional marketing departments to work according to their specific environment is the better 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 organiza tional culture based upon a clear vision and complaint of the company should be communicated to all of its employees. maybe FES can create a hybrid model which allows centralization of decision making with respect to financial and important managerial decisions and at the same time, the marketing campaign is allowed flexibility according to the specific needs of the region. A key reverence for FES is to harmonize 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 unite the existing business composition increment in new regions of the world.As part of the consolidation effort FES must conduct extensive employee training schedule instilling in each employee the vision and objective of the organization. The company should consolidate its major decision making power in the wellspringquarter thereby allowing precedequarter to maintain a re stricting 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 grammatical construction 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 departments to cater to their local markets. The pay for feat system can work smoothly in few of the regions but as explained earlier, some regions such as Middle East and some move of South East Asian cultures lay down a more hierarchical structure and it will be extremely difficult to introduce pay for performance system in these regions. as well as the parameters should be all the way defined before introducing the pay for performance system in different regions. Because same results usually do not take the stand same amount of performance in different region s. 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 self-sufficient in choosing the who, what, when and where about its employees.For example, Middle east region is very warm in summers 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 straighten out working policies should be established for each of the region. The R&D department should remain centralized at the American Head business. As a centralized R&D approach is more beneficial for a company like FES which has not expanded business into a variety of categories (AB, 2001).However taking scientific inputs from all across the globe may help the R&D department in impro ving its efficiency and effectiveness. Thus technological integration should be built where all global units of FES are directly integrated with its Head blot 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 FES operations require different level of centralization and decentralization.Also different regions require different level of authority delegation based upon their familiar 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 mak e 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 in effect by American managers, then leading services of local managers should be availed by and by providing them extensive cultural training programs at the Head Office. The regional units should be link to the Head Office through the prompt 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 capital punishment in different regions. The integration of boilersuit business can be achieved by proper use of technology and defining proper hierarchical system for flow of information between Head Office and va rious regional units.