Free Custom «Global Mindset» Essay Paper

Free Custom «Global Mindset» Essay Paper

Today’s globalized business environment determines the character of global leaders who prone to operate with a diverse population all over the world. They should adapt to different cultures in order to succeed in the international markets. A global mindset requires calls for removal of the borders between the countries, aiming to establish a trusting relationship and successful collaboration. Leaders with a global mindset can be rather successful in the international markets because they are able to look at any given problem from various perspectives. Experts depart from the international perception of a modern business as the main driver of globalization of markets, companies, and institutions. As globalization brings about the interdependence of national economies, companies search for new strategies that may improve their conditions of work. Therefore, a global mindset is an effective tool to realize the differences between partners and build bridges between them. The underlying paper aims to observe how a global mindset helps companies, organizations, and firms to achieve better success in a global business environment, searching for effective collaboration.

What Is a Global Mindset?

A global mindset allows people comprehend the surrounding complexity and paradoxes more easily. It means that they are able to not only withstand the pressure and ambiguity of opposing points of view, opinions, and data, but also, using all these differences, improve management efficiency. In short, thinking globally does not only relate to feed one’s family but all the people in the world. According to Burton-Jones and ‎Spender (2011), global managers tend to process a huge amount of information in solving large-scale problems that target various spheres of life. For example, pollution is an urgent issue in all countries that involves large human communities. People with global thinking are valuable in the various fields of science, policy and management.

Integration of different cultures, nationalities, ages and styles in companies around the world has a huge impact on the business. Today, leaders need new skills in order to succeed. Due to the rise social networks and technology, global interaction is a daily reality of business. Many findings reveal that global thinking involves the capability of seeing outside the company, national culture, and functional responsibilities, in order to comprehend the results of operations as a contribution to the society and its sustainable development (Marinov & Marinova, 2012). A global mindset helps managers perceive the complexity of the modern business environment.

Dekker (2013) believes that this type of thinking allows organizational leaders notice and accept the differences between individuals and groups, trying to understand them and learn how to cooperate effectively. A global mindset, thus, shapes a citizen of the world with respect for the other. Leaders with intercultural competencies are easily adaptable and believe that the differences are not only acceptable but desirable. Today, every aspect of leadership is to be measured, described and considered through the prism of global thinking. Moreover, a global mindset is something that does not come occasionally; it should be actively pursued. Hence, managers should realize the global interdependence of the modern world where they can learn and use the experience of others, constantly develop themselves and their employees, and are able to give up successful aspects of the past decisions and replace them with the new ones, paying no attention to what country or company they, as managers, come from.

The emergence of the term “global mindset”, in the broadest sense, represents the reorganization of the way of thinking of managers and economists working on a managerial level. By and large, a manager should change the way of thinking. To do so, one has to spread the concept and model of bilateral relations to a simultaneous view of the numerous realities and relationships, and to act professionally in this more complex environment. Such a shift in the thinking patterns implies that a manager will take more than just an understanding of the culture of other nations and the knowledge of its language. The globalization of markets puts on the agenda the need to train managers and executives with intercultural orientation.

Why a Global Mindset Is Necessary for US Managers?

The US managers operate in a highly diverse business environment that requires special knowledge and skills as well as flexibility of adjusting to other cultures. They should obtain a solid base of intellectual capital that contributes to the understanding of global business, which itself requires battling sharp competition and having respect. Currently, the business environment in the United States is composed of a diverse working force of different sex, age, race, religion, and culture. The role of managers is to combine all these factors in an organization with the aim to achieve profits. Dekker (2013) reported that some leaders find it difficult to work ‘outside the box’ and are often suspicious to the aliens, including foreigners, because they are not able to abandon the outdated management practices. However, new realities encourage them to use the experience of others and replace past methods with new ones, ignoring the fact that their new employees may come from another country.

Global mindset does not only imply that administrators and middle management have to achieve better business results, but also make a positive impact on the environment in which he/she operates in. Employees on a global scale think about how they affect those who manage and interact with someone and the long-term consequences of their actions and decisions. Nowadays, the US economy is characterized by the system integration of global markets and regional economies in all spheres of the human activity. As a result, there is an accelerated economic growth and rapid and constant introduction of modern technologies and management practices. Today’s process of integration of national economies into a single global one has a number of unique features, especially when compared with what happened in the recent past (Burton-Jones & ‎Spender, 2011).

The revolutionary changes in the field of global means of communication and the establishment of the information society (the Internet) have changed the American economy. Marinov and Marinova (2012) assert that modern changes have made no less transformative effect on the economy than the Industrial Revolution. Elements of such transformations are already clearly visible - E-commerce is not only a matter of general consumption but also shares of enterprises. In the USA, trade and industrial companies carry out their operations through the Internet for about $ 350 billion, and over 50 percent of corporate customer service is billed via the Web (Marinov & Marinova, 2012). Today, the volume of transactions made over the Internet allows firms outsource the various components of production to different countries, while maintaining direct institutional contacts and information, as well as direct control of trade and financial flows.

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Currently, the capital markets have become global, reflecting the financial side of the exchange of goods and services. The increased volume and intensity of international trade has also spiked the demanded money turnover. In order to receive competitive advantages, the US companies need highly professional managers with a global mindset who can connect with other stakeholders and employees within the organization. In the USA, one of the main strategic objectives of the HR function in multinational corporations is a reorientation of specialists-managers to managers who can administrate on a global scale (Burton-Jones & ‎Spender, 2011). Global mindset is based on the new realities in the field of economy and competition that is of a use at all levels in the company. Managers, who oversee everything from a global perspective, have to find a balance between the ability to react to what is happening both inside and outside the country. In other words, they should think globally and act locally, and on the spot.

The U.S. leaders understand that to develop a global mindset they must have an ability to foster the change. Change management in the volatile external environment is quite challenging. Dekker (2013) reported that the constant search for a balance between global and local pressure in a changing competitive environment increases the need for frequent redistribution of material resources, human resources, technology, reorganization of marketing, and distribution systems. For a successful transition, it is important that managers in the state have acted in accordance with the strategy of the company. If it is not adhered to, the movement towards globalization can oppose company’s managers of headquarters. The diversity of the U.S. population provides an opportunity to learn and allows leaders gain experience in managing cultural differences no less than global.

The Most Important Characteristics of a Global Mindset

The global mindset enables a manager learn the world in all its diversity, properties and relations. He or she can stay on the spot, being in a safe position, and play different situations in his/her mind. From this point of view, thinking, being a part of the psyche, performs one of its basic functions - the function of pre-emption events (Burton-Jones & ‎Spender, 2011). One of the basic characteristics of a global mindset is the leader’s personality. Despite the fact that researchers are faced with great difficulty in preparation of the brief, agreed list of the key features common to all leaders, in recent years, many scientists have come to the conclusion that the leaders are really different from the followers in several important aspects (Marinov & Marinova, 2012).The leader becomes attractive to the followers thanks to the ability to see what will be achieved as a result of his/her efforts.

Many findings reveal that the most important traits of a leader with the global mindset are: (1) the personal characteristics of the leader, (2) ability to gain submission, (3) motivations that influence behavior, (4) the system of the most important beliefs, (5) the decision-making style, (6) the style of interpersonal relations, and (7) the resistance to stress (Burton-Jones & ‎Spender, 2011). Furthermore, one of the most important qualities of a leader is communicativeness, which represents the ability to establish solid relationships, preserve them for a long time, and the capability of choosing and building the relationship that is the most necessary the organization at that point in time. Dekker (2013) identifies the following characteristic features, such as flexibility, efficiency, speed, and analytic thinking. For example, flexible thinking provides greater adaptability to changing circumstances. The productivity of thinking reflects the ability of a leader to produce innovative ideas. However, if one has no inclination to analyze the situation, it will no longer be possible for that person to retain the position of power.

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In any situation, a manager behaves according to his own self-concept. Hence, his/her behavior is dependent on how he or she compares oneself with those with whom he/she interacts. An adequate understanding of leadership components of self-concept allows a manager execute basic administrative functions more clearly: planning and control, decision making and conflict resolution, promotion of labor, and others (Burton-Jones & ‎Spender, 2011). Major belief system as an ordered set of knowledge, the truth of which the person is confident helps a manager to shape his/her global mindset that is used to regulate behavior. Thus, one should understand that flexibility must become leader’s prerogative to manage personnel in the global market environment. Otherwise, the rigid belief system possesses a danger to surrounding him/her with sycophants.

Personality traits are very important in the formation of a global mindset in leaders, because they point to the peculiarities of their characters and determine the behavior with respect to others. In today’s global market, leaders should focus on leading a dialogue that is based on mutual respect and trust. Since the leadership position involves higher, in comparison to the followers position, psychological stress, a manager should be resistant to it.

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If a person is not able to resist to challenges he/she, by definition, cannot become a leader. However, the most important characteristic of a globalized leader, as Dekker (2013) suggests, is the high level of adaptability: the capability of determining what actions or approaches are required in a given situation, and then acting accordingly.

What Contributes in an Organization’s Success Both Inside and Outside of the USA?

The organization’s success both inside and outside the USA depends on the level of openness and integration of national economies into the world economy. According to Dekker (2013), globalization encompasses mechanisms and consequences of processes that allow entrepreneurs consider them as an independent quality, complex system of phenomena and relations, integrated into their systematic, but rather internally contradictory. For example, the active participation of the U.S. corporations in international trade gives benefits for the overflow of the latest technology from trading partners, representing the potential to overcome the well-known challenges of upholding of the most developed countries of the world. However, the increased integration into the world economy can be dangerous for domestic manufacturers that do not have sufficient experience in terms of competition in conditions of globalization, because non-flexible manufacturers cannot compete (Burton-Jones & ‎Spender, 2011).

There are several factors contributing to the rapprochement of the countries and their integration into a single economic space. They are as follows: (a) the free movement of capital, (b) the growth of transnational corporations, (c) electronic commerce, and (d) the development of communications and information technologies. These aspects contribute to free access to goods and services, new scientific achievements, promote the world’s progress and resource savings. On the other hand, they cut off the oxygen flowing to small businesses and the peripheral economy models. Many findings reveal that opinions of specialists are divided with respect to globalization: some of them say that in the future the globalization processes will gain greater speed, while others believe that it will lead to the development of a global ideology, culture, economic structures, and it may threaten the existence of the separate states (Marinov & Marinova, 2012). According to forecasts, the processes of globalization will soon come out of an economic framework (Burton-Jones & ‎Spender, 2011). As a result, a common cultural, legal and informational space will be formed.

According to the research, about 20 percent of the global economic output is produced by subsidiaries of multinational corporations (Marinov & Marinova, 2012). One-third of the world trade accounted for the transactions between the base companies and their foreign affiliates, and another third - for the trade between firms belonging to multinational strategic alliances (Burton-Jones & ‎Spender, 2011). The UN has 35,000 transnational actors with 150 thousand branches (Burton-Jones & ‎Spender, 2011). That is all the more essential in the development of globalization, as transnationalization becomes a factor with an obvious focus on the corporate market information and market advanced technologies. For the effective functioning of these radically new, the U.S. organizations need to acquire new skills and honing the old ones. Businesses should develop the ability to evaluate and use a variety of new approaches in the field of management to continuously update the organization. Furthermore, it is necessary to reach new levels of creativity and inventions as well as to learn how to quickly respond to changes, in order to work more effectively.

Recommendations to Managers

Prior to the theory of global companies, team work was considered an important part of a manager’s success. With increasing labor specialization and differentiation within the organization, the need for integration was created, aiming to reunite specialized units and, thus, achieve the goals of the underlying organization. Dekker (2013) reported that teams, committees and groups working on the implementation of tasks were among those instruments that were used to achieve the desired level of integration. In terms of increased complexity of global operations, the ability to function in teams, especially in groups with cultural differences, becomes even more important. The experience of the thirty largest TNCs creating commands in the context of globalization has shown that organizations should increase their involvement in the solution of various problems (Burton-Jones & ‎Spender, 2011).

Global team work can not only provide a better knowledge of the market and technology but it can contribute to a more flexible business planning, more focused on the achievement of global objectives and ensure closer cooperation in designing the strategic change (Marinov & Marinova, 2012). Under the operational management structure, it is necessary to develop and implement processes that will contribute to the advancement and establishment of close relations between the branches. Furthermore, in terms of management of human resources, it is necessary to acquire the capability managing multinational teams in a more flexible and responsible way. A global marketing manager needs to develop the ability to form international teams that will accumulate ideas and introduce them to the local level management, where decisions are implemented and transformed into the final marketing decisions.

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The study asserts that the ability to work effectively with other people in the team will be critical for the successful implementation of the global strategy (Burton-Jones & ‎Spender, 2011). Therefore, participation in global teams must be present at the beginning of the managers’ career to turn these emerging specialists in effective global managers. It is obvious that in the global environment, a manager needs the skill to communicate with different groups of people that belong to various cultures. In addition to the proficiencies necessary for successful interpersonal communication, a manager must be able to benefit from the growing global communications systems. According to Dekker (2013), the ability to communicate and develop trust and common interests will help build a strong corporate culture that emphasizes the importance of common global systems of values.

Nowadays, in the context of the diversity of needs, and broad geographical distribution of production and resources, the growing importance of technological improvement of production processes and innovative learning as well as the knowledge transfer are key to global success (Marinov & Marinova, 2012). Modern competent managers will have to be extremely curious, and successful organizations will need to quickly and effectively coordinate, share and use the knowledge gained.



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