international business

The Global Business Manager The global business manager is responsible form many different types of management and leadership activities: operations, procurement, accounting, marketing, industry-specific technologies, staffing—just to name a few. In addition to standard management qualifications, the complexities of the international operating environment require additional qualities that few candidates fully possess. The global business manager must possess a strong international awareness and must understand the unique factors that contribute to the success of a global business, including formal education. The global business manager also must have an appropriate mix of relevant experience in global business ventures.

Global Mindset vs. the Provincial Mindset Global businesses transcend physical borders; therefore, the global business manager must possess proficiency in managing a business in any location in which a firm is operating. The manager is the key coordinator of activities between disconnected operating locations. In addition, the global business manager must be able to juggle the issues that affect each country individually without accentuating the issues of any one country. Managers sometimes use the input of their subordinates concerning decisions about a firm’s direction. Thus the global business manager in an international setting must consider that line managers probably lack the contextual awareness to suggest the most optimal change. Therefore the global business manager must resist any urge to instinctively trust line managers and instead apply his or her discipline and critical thinking capacity to formulate decisions that are most conducive to the international operating environment. Maintaining a global perspective is critical because each provincial market will contain issues that are unique to its region.

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Knowledge, Skills, and Attributes Needed for Success A common set of knowledge, skills, and attributes—a human resources concept known as KSA—has been identified as that which best expresses the ideal global business manager’s qualifications. KSA are usually outlined in a job requisition. No one formula exists for the perfect global business manager; so, KSAs will not by themselves ensure success. Each KSA that a candidate holds will improve his or her chances for contributing effectively to an international venture’s success. The most successful venture is likely to be the one where all of its participants are contributing most effectively.

The first component of KSA is knowledge. Knowledge is the information that a candidate possesses in the area of given disciplines. In business, such disciplines will include accounting, controlling, operations, and staffing. In international business, these disciplines are expanded to contain a contextual facet for each country under consideration. The ideal candidate possesses knowledge in areas pertinent to each country in which the firm operates. For example, staffing practices in socialist France vary from the unregulated labor market in China. Therefore, a manager of a French multinational corporation with a manufacturing facility in China would require first-hand knowledge of which practices are most effective in each of these two countries in order to prevent failure. Other disciplines that are beneficial, regardless of countries, include knowledge in areas of outsourcing, international law, and global economic principles.

The second component of KSA is skills. Skills are much more narrowly defined than knowledge areas, since they represent quantifiable measures. One example is computer literacy. A minimum standard of proficiency in Microsoft Office® might be required, as the candidate will be responsible for preparing contracts in

Microsoft Word® or making presentations using Microsoft PowerPoint®. Another skill is proficiency in foreign language. Fluency in a foreign language can be especially beneficial in multinational firms in which several different languages are spoken. For example, the surge in demand for Arabic speaking U.S. citizens after

9/11 and the resulting War on Terror.29

The final component of KSA is attributes. Attributes are the characteristics that are unique to an individual’s learning experiences or character. Unlike formal knowledge or skills, these characteristics and personality traits are less likely to be taught. However, these can be acquired through understanding and experience. A desirable attribute in a global manager is the ability to manage cross-cultural relationships. An individual who possesses diplomatic traits will naturally be more likely to succeed when dealing with conflicting personalities—often present in cross- cultural relations. Another desirable attribute is the ability to multi-task and work efficiently and effectively under pressure. International business involves a far greater number of variables than that of a domestic business, so the ability to adapt to change while managing stress is of critical importance. General management attributes such as friendliness, written and oral communication style, and soft-skills involving leadership qualities are as relevant and desirable in international management as they are in general domestic management.

How These May be Obtained Knowledge, skills, and attributes are obtained principally through education and experience. Education includes formal learning that often results in a certificate or degree. A highly desirable degree in the current marketplace is the Master of Business Administration (MBA). MBA program offerings have grown substantially over the past decade as a result of this high demand. Professional training is used to complement formal classroom learning. Professional training, such as Six Sigma certification, are especially effective at keeping managers abreast of the latest technologies and business practices.

Managers gain experience by the actual hands-on encounters with KSAs in a real, working environment. While education is typically the starting point of a manager’s career, past performance (experience) is arguably the most important predictor of a manager’s ability to handle a given situation. Education and experience are both necessary components in handling the complex tasks of managing a global business. Staffing is similar for a domestic business manager and a global business manager. The major difference between the two is that in global business, failure is compounded.