CHAPTER 3-GLOBAL MINDSET- INT HUMAN RESOURCE MANAGEMENT

IHRM

1. CHAPTER 3 CREATING GLOBAL MINDSET

2. GLOBAL LEADERSHIP Global leadership has been defined as being capable of operating effectively in a global environment while being respectful of cultural diversity‖ (Harris & Moran, 2004).

3. WHAT IS GLOBAL LEADERSHIP? The study went on to identify just what these global leadership skills would be. Five overall clusters were identified: 1. Thinking globally 2. Appreciating cultural diversity 3. Developing technological savvy 4. Building partnerships and alliances 5. Sharing leadership

4. GLOBAL MINDSET Global mindset is one of these terms that many scholars and practitioners in management can, for the most part, understand, define, and talk about. In global leadership literature, global mindset has been used to describe many things from skills, attitudes, competencies, behaviors, strategies, and practices (Levy, Beechler , Taylor, & Boyacigiller , 2007). One thing that scholars seem to agree on is that having a global mindset is necessary to be an effective leader in the global environment (Levy et al., 2007).

5. THE ROLE OF MINDSET IN DEVELOPING GLOBAL LEADERSHIP “Global Mindsets” are the key to sustainable competitive advantage in the global economy. A review of best practices offers four recommendations for developing global leaders: Organizations need strategic clarity about what kinds of skills a global leader needs. 2.Prospective global leaders need relevant developmental opportunities.  

6. 3. Prospective global leaders need appropriate levels of feedback, resources and support to help them learn from the experiences they have. 4. People need international perspectives and exposure starting early in their careers to maximize the quality of the globally competent expert pipeline.

7. THE IMPORTANCE OF A GLOBAL MINDSET Our ability to absorb and process all the information that we need to make daily managerial decisions is limited. To cope, our brain filters the flow of information coming from the outside. Over time this filtering becomes a fixed disposition that predetermines a person’s response to and interpretation of situations; this is known as a “mindset.” Mindsets can be associated with both individuals and organizations.

8. The organization does not therefore depend on one particular person’s ability to think globally. Instead it relies on the network or interconnected global mindsets of managers across countries and levels to take advantage of all the global opportunities.

9. The real importance of an organization’s global mindset is not about being able to do all things, but rather to understand the complexities and nuances of the global environment as well as the trade-offs and opportunities when they are available.

10. The main benefit of a global mindset is the organization’s ability to combine speed with accurate response. The organizational global mindset can bring about benefits that can manifest themselves in one or more competitive advantages. The five sources of competitive advantage are:

11. 1. Early mover: The advantage of identifying emerging opportunities early on. 2. Trade-offs : Greater sophistication and a more fine-grained analysis of the tradeoffs between local adaption and global standardization. 3. Best practices : More rapid and efficient sharing of best practices across subsidiaries. 4. New products: Faster rollout of new product concepts and technologies. 5. Coordination : Smoother coordination of complementary activities across borders.

12. Question: Analyze a case study of a company (other than those mentioned in the lecture) that has successfully developed a global mindset among its employees. Describe the strategies they used and the outcomes they achieved.