Management Cross and Across Borders †MyAssignmenthelp.com

Question: Discuss about the Management Cross and Across Borders. Answer: Introduction Globalization has led organizations to operate across-borders by establishing business in different countries across the globe. This demand for international operating has led to changes in business environment due to the need for globalization (Mintzberg, 2000, P. 12). As many organizations scramble for global space in there are benefits and challenges that are associated with such business strategies thus the need for organizations to develop strategies that can ensure their success in such business initiatives. Stacey (2007, P. 21) argues that managing across boarders comes with challenges that every organization has to work on to survive in the global environment. This puts managers of such organizations in difficult position to deal with the challenges of globalization. Only organizations that have put proper strategies in place can survive this business environment. This report analyses the concept of management across-borders by looking at the opportunities, challenges and str ategies for managing across-borders. The global context of management Globalization arises with different opportunities that led to interconnectedness of the globe thus allowing people to easily interact with each other. This led to cross-border activities due to lessened distances between nations due to advances in technology, transportation and communication. This led to the development of world governing bodies to try and control business across the globe and regions (Acedo Casillas, 2005, P. 622). Unlike the scramble and partitioning that took place during colonialization, bodies such as the EU, WTO, ECOWAS and NATO have come up as a way of defending regional business to protect the interests of business opportunities that fall within the regions that they come from. In the past, globalization and trade was a matter of developed countries but emerging economies like the BRICS have changed the way business is carried out due to the opportunities that are created by cross boarder opportunities (MacIntosh OGorman, 2015, P. 189). Burkley (2005, P. 8) argues that when organizations operate in across boarders in a global environment, they are faced with geographical management strategies that have to be used to manage challenges that emanate from such opportunities. This leads to the need to manage tensions that is due to divisions in the organization that operates on divided units across the globe. Managers have to develop multiple strategic capabilities and at the same time allow the organization to transfer competencies across-borders. While these business operations will be run in different regions, the core business idea must be maintained and a close link between the mother organizations established to ensure that the business survives. Managers have to ensure that their organizations are simultaneously achieving global efficiency, national responsiveness and the ability to develop and exploit opportunities on a worldwide basis(Braithwaite Drahos, 2000). This has been caused by several factors like Chang es in world output and world trade, type of companies operating across-borders and change in the world order which have shaped the way business is carried out across-borders. This rapid changes in the world lead to new management challenges that are as a result of Cross-cultural diversity and management The analogy of the iceberg has been used to conceptualize the cultural framework as consisting of different layers that are not visible. Whatever is seen is the floating tip of the iceberg (Belhoste Morin, 2013, P. 1529). This means that there are deeper cultural concerns for managers. A deeper understanding of culture is based on looking at the submerged part of the iceberg that consists of expressed value and reflects the basic and taken-for-granted assumptions which form the foundations of each culture. According to Maude (2011, P. 23) management across boarders entails dealing with different cross-cultural situations that may affect a business. As companies globalize and move across-borders they need more people to work with them who will come from different countries and cultures. This creates a complex and important station that cross-border managers have to deal with. Managers not only have to learn to adapt to this new cultures but rather have to align employees from differe nt cultural background to accommodate each other to meet the needs of the organization (Richard, 2005, P. 12). Managers have to overcome differences in communication business activities that will vary from country to country. Such managers struggle with the effect of culture on their work without knowing how it affects them (Braithwaite Drahos, 2000, P. 17). This is because business patterns will vary from country to country, ways of doing business, negotiating and crating contact with clients varies based on the cultural differences that exist between the two people. The culture map is used to explain different types of behaviour that occur at the workplace. This allows managers to identify and plan for available resources within regions by pointing out problems that need to be solved and strengths that can be utilized within the context. This will identify several differences that exist between different groups within the business environment. For example communication and work place etiquettes vary from region to region. The way to manage teams will vary from one region to another. Cultural differences will affect employee attitudes and their abilities to work within the organization. This will lead to challenges like difficulties in allowing groups to openly express their views. This is because ways of approaching issues will vary from one culture to another. For example cultural styles of Asia vary from those in the westernized countries or the US. On the other hand, countries in the Muslim regions have different cultural attributes and the way to approach business. Managers have to understand the cultural differences of the teams that they are dealing with at all times. The manager has to adapt the management style to cope with different cross-border cultural issues across the globe. Characteristics of cross-border managers Research has indicated that to manage across-borders; managers need to have specific abilities that define them with core characteristics that make them successful. Such managers have a personal character that is characterized by an emotional level and uncompromising integrity. Through their emotional ability, cross-border managers connect with people at the emotional level through three steps; sincere interest, effort to listen and ability to understand different perspective of people across-borders. Such leaders also need the ability to deal with uncertainty within the business environment. Managers in cross-border business initiatives deal with certainty more than those working across-borders. This is based on tensions that are brought about by differences in culture thus requiring higher tolerance levels to cope with such cultures. On the other hand, there is the need to balance between local and global business needs to succeed. The manager has to have a global mindset that is important in understanding the differences in culture that may exist within the globe. Different cultures present different needs to manage differently thus posing different challenges to the manager (Hill, 2005, P. 32). Therefore such managers can manage intellectual capital, psychological capital and social capital to ensure that the organization progresses well. Challenges of managing across boarders One major challenge faced by global managers is the exposure to risks which may affect the heath of an organization. The need to integrate human resource and other data functions of the organization is a bigger challenge for many organizations (Verlag, 2011, P. 165). This is because many organizations lack strategies for managing across-borders that have been put in place before. This can lead to poor alignment of resources thus creating risks for the organization. Research has shown that many organizations struggle with compliance and risks that emanate from the global and cross-border business activities. One other challenge is managing multiple human resource systems for every business operation that is carried out across a different country. Every border that the business penetrates needs to have its own human resource system that needs to be integrated into the larger system (Acocella, 2005, P. 34). This presents challenges in human resource management of the organization since it requires a new human capital management strategy that pushes the organization to new levels. Government policies vary from country to country and region to region. This affects business activities and the way to manage. For example many countries are members of regional block bodies that seek to control business activities within these regions. Government policies influence business through monetary policy, control of inflation, subsidies and tariffs, regulations and corporate tax and fiscal policy (Baumol, 2002, P.21). Business managers have that governments are the most challenging figures in business since a single regulation can send shockwaves along the globe affecting a long chain of businesses that fall within the regulated area. These policies affect the economic value of any organization and today the involvement of the government has increased due to the global effects of the economic crisis. Every country charges its custom duties and taxes based on its domestic policies and economic strategies. According to Sawyerr, McGee, Peterson (2003, P. 271), ggovernments a re stepping to control their economy through monetary and economic recovery schemes that affect every business organization. Global organization will be affected most due to changes in the global exchange rates that vary from country to country. Some governments will put sanctions will others will amend or pass new laws that affect business operations within the country. However, in some instances, government policy may have positive outcomes to a business. One other challenge faced by management across-borders is meeting needs of employees who are sent to work across-borders. Many global organizations have a mixture of local employees within the country and expatriates. Expatriates are sent to manage the complex parts of the organization to enable the organization maintain business standards like the one in the mother country (Kohler Chaves, 2003, P. 21). Sometimes expatriates see this as an opportunity for their own individual growth. This raises their expectations and makes it difficult for organizations to meet their needs. Opportunities for cross-border operations The global climate offers a mixture of opportunities and challenges for managers. Changing economic circumstances create business opportunities in some sectors that had been closed and were never open for trade. This allows organizations to exploit these opportunities by tapping into the benefits that can be received from such opportunities. New emerging economies and developed countries offer better business climate as compared to developed countries. They offer cheap labor, available raw materials and resources that have not been exploited before(Kohler Chaves, 2003). Through transfer packaging many organizations have shifted their business operations to these countries to spread their business risk. Some multinational corporations have adopted international contract manufacturing or outsourcing as a way of reducing high domestic labor costs from their countries. Management across-borders opens more opportunities for the organization. Managers can reap the benefits associated with new market opportunities by exploring such markets to ensure that they get the best out of the market. Cross-borders operations offer new business opportunities that need to be exploited by the organization. These are new markets and new resources that may not have been exploited. Through cross-border management the organization is able to access new opportunities that may offer better business opportunities. This is also offers product flexibility by allowing products that are not moving in the domestic country to be tried out in across these borders. Low competition is one of the major factors that has been linked with cross-border operations. Since international markets vary from region to region, organizations can choose regions with less competition and the ones that favor them. This allows for easy business operations and reduces pressure that such businesses face in their domestic countries (Starkey Madan, 2001, P. 12). Developed countries are witnessing increased competition and pressure from market demands where the customers want greater business opportunities. This has led to the need to explore developing markets and emerging economies as a way of diversifying business risks. Strategies for cross-border operations One strategy that a business can use as a strategy for global operations moving across-borders is a development opportunity that makes the organization to grow and diversify its business operations. The analogy of the organization can be used to justify how an organization grows (Lawrenc Lorsch, 2007, P. 4). Differentiation is a strategy that allows business divisions within an organization to grow their own corporate culture within the company. This allows for different approaches that are used to manage business processes within the organization. This can entail having differentiated strategies across-borders. Gasparini Bianco (2011, P. 16) suggests that through differentiation, organizations are able to develop strategies that fit the specific regions that they work in rather than sticking to the original business plan of the organization. Horizontal differentiation can be used to allow employees to report to different functional managers. Spatial differentiation works best for organizations that work across-borders. It allows employees to work in different locations on tasks that are assigned to them. When organizations move across-borders, management may decide to differentiate some units within the organization or develop a full unit within the new region (Child, Faulkner, Pitkethly, 2001, P. 35). Differentiation allows organizations to manage activities separately thus reducing risks that may be associated with such business processes. Sometimes increased differentiation can lead to changes in the organization structure when the differentiated section of the organization grows to accommodate larger organizational processes. Cost leadership is business strategy used to establish competitive advantage through low cost operations. This strategy is driven by the scale, size, scope and efficiency of the organization. This strategy targets exploitation of scale operations of the organization through producing highly standardized products through reduced costs of production. This has been used as a penetration strategy of entering new markets by many organizations (Zimmerman Hudson, 2006, P. 8). Managers need to analyze new cross-border opportunities and develop cost leadership strategies that can lead to penetration in such markets. Through use of modern technologies, businesses can develop new products through cost leadership and access new global and cross-border markets. Walmart is one of the organizations that has used cost leadership strategies to move from one border to another. However, this strategy has been criticized as creating room for new entrants since low cost leadership creates economies of s cale that allows easy entrance into the market. Diversity is an issue in modern management that every manager has to deal with. Diversity management entails developing strategies that seek inclusion of employees from various backgrounds within the organization (Minkov Hofstede, 2011, P. 15). The need for diversity in management has been pushed by a globalized economy that requires inclusion of every individual within the society. The long-term success of any business calls for a diverse body of talent that can bring fresh ideas, perspectives and views to their work. The challenge that diversity poses, therefore, is enabling your managers to capitalize on the mixture of genders, cultural backgrounds, ages and lifestyles to respond to business opportunities more rapidly and creatively. Organizations that operate in society are required to achieve diversity levels that reflect the societies that they work in (Edewor Aluko, 2007, P. 197). The long-term success of any business calls for a diverse body of talent that can bring fresh i deas, perspectives and views to their work. The challenge that diversity poses, therefore, is enabling your managers to capitalize on the mixture of genders, cultural backgrounds, ages and lifestyles to respond to business opportunities more rapidly and creatively. When managing across-borders, diversity refers to heterogeneity of the organization but rather composition of the workforce across nations. This means that managers have to develop a diverse environment that accommodate employees from different backgrounds, perspectives, abilities and disabilities. Many companies, however, still face challenges around building a diverse environment. Part of the reason is the tendency to pigeonhole employees, placing them in a different silo based on their diversity profile. Conc lusion Management across-borders offers both challenges and opportunities for the organization. Businesses that seek to work across-borders focus on tapping the benefits associated with cross-border business operations. Managers have to develop strategies that enable them to access cross-border opportunities. Through differentiation and cost leadership, organizations can reap the benefits associated with cross-border marketing opportunities to increase business efficiencies. Managers need to ensure that proper strategies are put in place to ensure that organizations succeed in their quest for cross-border management operations. Managers can reap the benefits of cross border operations if they put proper strategies in place. References Acedo, F. J. Casillas, J., 2005. Current paradigms in internatiomal management field an author co-citation analysis. International Business Review, 14(1), pp. 619-639. Acocella, N., 2005. Economic policy in the age of globalisation. s.l.: Cambridge University Press. Baumol, W., 2002. The Free-Market Innovation Machine: Analyzing the Growth Miracle Capitalism. Princeton: Princeton University Press. Belhoste, N. Morin, P., 2013. 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