Global Mindset

Global Mindset Student: Althea A. Tulloch [email  protected] com Program: Bachelors in Organizational Management Nyack College November 30, 2011 Introduction What does it mean to have a global mindset? . Advancements in technology, especially the Internet for e-commerce, have led to globalization, where different economies, societies and cultures of the world are integrated through a global network . It is the capability to operate a business within various cultures. Globalization has affected the world in many different ways including, Industry, Financial arkets, Economically and Diversity where respectively there has been an increase of worldwide markets where countries now have better access to foreign products and raw materials for production and finished goods exportation, different economies of the world have better access to loans and an increase in job opportunities in underdeveloped countries thereby reducing poverty . It has increased the competition among different count ries, and has opened the world to better communication and understanding among people. With the growth in globalization individuals and organizations are forced to develop a lobal mindset to keep abreast of the times. Having a global mindset, to me, is having the ability to analyze, appreciate and utilize the beliefs, customs, behaviors and business practices of individuals and organizations from different parts of the world, to influence global success in the marketplace. It is necessary that global leaders hone this skill as they â€Å" require both business – related and culture-related competencies to operate effectively on a global basis† (Terrell, 2010, p. 2). There are five characteristics of an effective global leader, according to Goldsmith et al 2003): 1. thinking globally 2. appreciating cultural diversity 3. developing technological savvy 4. building partnerships and alliances 5. sharing leadership. Without first acquiring a global mindset, a global leader will not be as effective as he or she should be in the diverse cultural arena. These skills are all required in addition to those typically associated with general leadership which involves managing, strategizing and decision-making. Having a global mindset gives a global organization a competitive advantage in the marketplace. Cultural intelligence (CQ) provides a research-based model for becoming a more effective leader in culturally diverse and cross- cultural settings and is the core of developing a global mindset . This is a necessary skillset for every manager who deals with diverse teams of employees and customers. According to Van Dyne et al (2009) CQ is a person’s capability to understand and adapt effectively to new cultural contexts. Its structure is comprised of cognitive, motivational and behavioral elements. As CQ is relevant to the increasingly global and diverse workplace, it s a requirement in developing a global mindset. However, it is insufficient to rely on awareness through experience and thought, to attain the high CQ necessary to become a superior global leader, responsible for managing multinational teams. According to Shapiro et al (2005, p. 14) â€Å" Knowledge of self is insufficient for high CQ because awareness does not guarantee flexibility †. Flexibility of self- awareness is highly desired as cultures are evolving, and reshaping one’s outlook is necessary for a better understanding. Sowell (1994) states in regard to culture that cultural competition is what dvances the human race, as there are transfers of cultural advances from one group to another. Culture affects decision-making, as well, and the required decision model needs to be determined on an individual nationality basis. According to Wilson (2010) some of the relevant categories to determine which model a nation’s culture falls under are: rational / classical: making presumptions that each group member has common goals and can reach desired conclusions by identifying and assessing problems emotional: exhibiting feelings like mood and verconfidence political / coalitional: a behavioral attitude with emphasis on negotiation, cooperation, or often chaotic but works out in the end garbage can: appease the majority of stakeholders through consensus By understanding decisi on-making models which guide decisions more successfully, leaders are more effective and can better influence problem solutions across cultures. What behaviors are necessary that allows a leader to develop a truly global mindset? A leader can develop a truly global mindset by learning from experience, whether this nvolves learning the language and customs of the countries within which he or she works, by participating in diverse meetings and communicating with a diverse group of business leaders or by living in or frequently visiting global countries or by attending training programs or similar to the ones offered at the Thunderbird Institute. Dr. Mansour Javidan’s programs offer assessments and suggestions on improvement to achieve superior global leadership qualities. The programs focus on three concepts, or capitals: 1. Intellectual Capital – how much one knows about global industries and governments in ther parts of the world 2. Psychological Capital- which influen ces the emotions, and questions how willing a person is to put himself / herself in uncomfortable situations 3. Social Capital – how able is someone to build relationships with people from different countries An organization has a responsibility, as well, in developing the global mindset of the leader by communicating its strategic intent and interest of being a global company. It can also provide clarity on the kinds of skills needed for global executives. Conclusion An organization that intends to expand globally must develop a global mindset if it is to recognize and capitalize on opportunities in the marketplace. Cross-cultural training is imperative for organizations that expand globally. Managers need to get more involved with activities that are diverse in order to learn more about cultures and how we are similar or unique. The organization should have a foundation of openness and dedicate itself to becoming well informed on different cross-cultural issues, values and systems and different assumptions regarding reality. Additionally, it should accept diversity as natural (as the world gets closer through high technology), and also as a source of opportunity and strength. . References: Goldsmith, M. , Greenberg, C. , Robertson, A. , & Hu-Chan, M. (2003). Global leadership:the next generation. Financial Times Prentice Hall: Upper Saddle River, NJ. Javidan, M. (2011). Global mindset. Macguire graduate school of Management. Shapiro, D. L. , Von Glinow M. A. Y. , Cheng, J. L. , & Hitt, M. A. (2005). Managing Multinational Teams: global perspective. Advances in International management, 18(1). Elsevier Ltd : San Diego, CA. Sowell, T. (1994). AWorldview. In Race and culture: A worldview (pp. 1-31). Retrieved from: http://www. tsowell. com/spcultur. html Terrell, S. (2010) How global Leaders develop: a phenomenological study of global leadership development. Retrieved from http://www. proquestllc. com Van Dyne, L. , Ang, S. , Livermore, D. (2009). Cultural intelligence: a pathway for leading in a rapidly globalizing world. Ccl casebook-cq chapter. Wilson, J. H. (2010). Closing the deal: influencing a decision in two cultures. Leadership Advance online. Issue xx.