1 Running head: The American Office Overseas

The American Office Overseas: Problems and/or Risks MGMT617 Ronald C. Johnson, Ph.D.

2 CONTENTS:

Statement Hypothesis Short Introduction The Problem The Solution Conclusion Reference

Pg. 3 Pg. 3 Pg. 4 Pg. 4 6 Pg. 7 - 9 Pg. 10 Pg. 11

3 Statement The purpose of this research paper is to analyze some important factors regarding American managers and leaders overseas. In addition, this paper will include a brief description of some of the problems that American managers and leaders might face while managing employees in the host country. These problems will be discussed thoroughly in order to have a clear understanding of certain issues that organizations deal with overseas, as well as what managers should do to avoid these problems.

A hypothesis My opinion and thought on researching on how American managers and leaders manage the office overseas elevate the idea that current literature provides somewhat an extensive amount of information with relation to the chosen topic. What I expect to find in the research literature is that American Managers are introduced to a workforce group with diverse backgrounds that differs a lot from the American culture. Also, what I think the literature will provide is a description of problems that managers face and how it turns into a strong experience that will benefit them in future projects. The body of this paper will include the problem and the solution by giving examples collected throughout my research.

4 Short Introduction Choosing whom to send to run the office overseas is not easy. These individuals should not only know the language but also should be able to adapt easily to a diverse workforce. Mark Henricks in one of his articles says that the benefit that the company has by sending one of its own to run the office overseas is the knowledge this individual has about the companys goals, strength and culture. This advantage though, does not help the managers overcome the main disadvantage, which is the problem of cultural differences (Henricks, 1997). Cultural differences can raise implications between countries if the managers managing in the host country are not trained properly. Cultures differ from one another by the way they behave, the way they dress, and the way they express their personality. The Problem Culture is the set of shared values, attitudes and behaviors that characterize and guide a group of people. Cultural factors happen to be very difficult as they change from country-to-country. Even though managers have certain expectations about the host countrys culture, the observations are not helpful because specific individuals are set to their own views and habits (Brown & Gutterman, 2003). Brown and Gutterman describes Cultural and Social Values as an analyze based on the following categories: 1. Social Structure and Dynamic In this section, Brown and Gutterman, explain how the human culture is bound to its own values, objects and traits based on terms that categorize and analyze the relationship between Individuals vs. Collectivism, the Individual, and the Society. The manager should know if employees have independence and self-reliance, such as in the U.S. or do they

5 feature responsibilities as a group, such as in Japan. Is the structure and nature of individual relationship based on strong orders or on equal manners? What about the Society? How well do they deal with orders? 2. Time Conception Americans are devoted to punctuality and consistency, as well as working a full week, which is considered to be 40 hours or more. They also take strict hours lunches and are expected to work the full eight-hour day shift. This work strategy is not the same, for example, in France, Italy or Spain. In France and Spain punctuality is not seen as a priority. They also are not obligated to take exact hour lunches and work a full day shift. In these two countries, it is normal for employees to take lunches that are longer than one hour as well as work over project slowly. In Italy, though, lunches are usually three hours long (Washington, 2009). 3. Human Nature In this section the writers have demonstrated examples based on trust. According to them, if the dominant society belief is that humans are basically good and trustworthy, management may use less controls and somehow low level of supervision. If people are viewed as untrustworthy in a society, the management will use strong procedures with tight supervision. If in a society where people are modifiable, management will more likely be successful by implementing educational and personal development programs (Brown & Gutterman, 2003). 4. Religion Religion could be a major factor in certain countries. For this reason the management team supervising in the host country must know the schedules of their holidays and respect their beliefs.

6 5. Gender Roles How the company decides if they want to send a man or woman manager to take control of the office overseas is sometimes challenging. Most Americans are against discrimination and feel that both sexes should get equal opportunities. However, this is not the same in other countries around the world. Islamic nations, most Latinos, Africans, many Asians, and even Southern Europeans isolate, control, and limit female behavior, especially in commerce. In Saudi, for example, women are forbidden to drive. In Indonesia, women may not rent a car. And when American Businesswomen seek assignments overseas fear that these limits might affect them as well (Encyclopedia of Business, 2nd ed.). 6. Language Brown and Gutterman explain in their book how language is one of the most obvious areas of cultural differences among and within countries. This is very challenging for the managers because language includes the spoken and written words, as well as the style of expression, the use of context and the accompanying nonverbal signals; in other words the body language (Brown & Gutterman, 2003). In Mark Henriks article, Joel Koblentz, manager of Egon Zehnder International Inc., also mentioned that, even if managers know the language, they may not have spoken it in a business setting before. This means that communication in business is not the same all over the world and is a big factor that needs to be taken under strong considerations. Knowing all these will avoid lack of knowledge when it comes to proper behavior around business people from other countries.

7 The Solution Managers are faced with hardships regarding not knowing an adequate foreign language and other cultural elements that will insure the efficiency of the decisional act (Botescu, 2010). There are several solutions how American managers can avoid the above problems while managing overseas. 1. Social Structure and Dynamic Managers can provide meetings to where they can be able to learn how workers will respond to various directives and incentives. Getting to know the workers, managers will be able to know what ties might bind workers to each other and how those bonds might affect company loyalty (Brown & Gutterman, 2003). 2. Time Conception The literature mentions that the company can provide the candidate with a trip to the host country to familiarize and face what he/she will find there. It is important to understand the culture of the host country about time and space. This will help the manager to learn about social and business engagements. Usually foreigners happen to be more relaxed about time and schedules than Americans. Knowing this will help the manager interact successfully with the host country. 3. Human Nature According to my research, Managers need to learn about the host country and their values. They should research and analyze workers behavior in order to be able to manage properly. The company cannot afford untrustworthy personnel and they should apply rules that must be obeyed. 4. Religion Managers that are to work in a foreign country must know certain aspects and one of those is to learn the importance of holidays in the context of

8 the local socio-economic life. Chinese New Years Eve is not on the same day and month as the American New Years Eve. Also, Catholic, Irish, or/and Muslim holidays could be very important for the host country and they do have the day off, no matter how urgent the business deal could be. 5. Gender Roles Female managers should be able to examine every aspect of host culture that may affect their work. There are three goals that should be achieved while researching: (1) By interviewing foreign nationals of both sexes, the female managers should find out how men and women are expected to behave, historical origins of this behavior, and what they expect from and American female decision maker within their business settings: (2) To be able to predict potential conflict. These could be social and commercial situations in which their expectations will predictably clash with the female manager just because she is American: (3) To be able to design specific ways to either neutralize or try to manage the macho elements of each potential conflict by adjusting to foreign expectations in ways compatible with American self-respect (Encyclopedia of Business, 2nd ed.). 6. Language The chosen candidate should be able to study the language. Become aware of verbal and nonverbal styles of conversations. Need to study and be able to recognize different gestures that could be offensive to the host country. For example, nodding, crossing your arms, pointing or leaning forward, how to shake hand, and when to bow. How to address people its also important. For example is it appropriate to address the co-worker in the host country by their first name, or by their last name? Ion Botescu, PhD., from University Ovidius of Constanta in Rumania, in one of

9 his article says that: The international manager must bring a good adaptability to the cultural conditions of the host country. They must show a positive and flexible attitude toward changes crossing from the factual elements of the new culture to its interpretative elements, as they try to achieve a better integration in the local environment. Training is an important factor for managers assigned overseas. There are different ways, for the company, on how to implement a cross-cultural training program. 1. Get to know more about the location by gathering information about local culture, local residents, environment and politics. 2. Formulate a module that deals with the establishment of policies and procedures to be used in the host country. 3. Provide intensive orientation about the work environment of the host country to ease cultural adjustments. 4. Conduct pre-departure training, which consists of exercises that enhance the employees interpersonal skills. 5. Get additional training in the host country as well as opportunities to experience the new culture in an informal setting like social events (Farrugia, 2009).

Conclusion

10 By researching this topic, I have learned many new things that have opened my mind and have made me think about how much challenge international managers face while working overseas. Thinking that once you get your assignment, the only thing to do is to apply the procedures and policies to the work environment overseas, is not a successful wise manager. Adapting to the new culture is not easy and this research has given me the opportunity to learn about some of the problems that happen to managers while managing overseas and ways how to find the best solutions. Culture is not only about believes and customs of the host county. In the business world Culture means a lot of things: life style, religion, mentality, human behavior, social life, appropriate introduction, appropriate outfits, appropriate use of the language etc. All these are factors that play a huge role in todays business. As a conclusion the assigned manager for the overseas office must prepare a working strategy that will provide the necessary information in order to achieve the companys goals and objectives in the host country. The diverse workforce will help the management team understand and serve better the purpose of the company to its clientele. Training, also, must be a priority for the assigned manager in order to avoid confusion, problems, and misunderstanding while managing overseas.

Reference:

11 Managing Machismo: U.S. Women vs. Foreign Men Abroad. (2010). In Encyclopedia of Business, 2nd ed. Retrieved October 5, 2010, from http://www.referenceforbusiness.com/encyclopedia/Man-Mix/ManagingMachismo-U-S-Women-vs-Foreign-Men-Abroad.html Washington, I. (2009). Problems with Moving a Company Overseas. Retrieved on September 15, 2010 from: http://www.ehow.com/about_5457563_problemsmoving-company-overseas.html Henricks, M. (1997). From a distance: The right local manager for your overseas office can boost international business. Retrieved on September 15, 2010 from: http://findarticles.com/p/articles/mi_m0DTI/is_n11_v25/ai_20172811/ Botescu, I. PhD. (2010, May 1). The Training of International Managers Succes Factor in International Business. Pg 115-120 Retrieved on October 5, 2010 from: http://ideas.repec.org/a/aio/manmar/vviiiy2010i1p115-120.html Farrugia, J. (2009) Preparing Managers For Overseas Assignments. ArticlesDatabase Retrieved on October 5, 2010 from: http://www.articlesbase.com/internationalbusiness-articles/preparing-managers-for-overseas-assignments-908116.html