International Management Report: General Motors and Global Teams

This report provides an executive summary and detailed analysis of international management practices at General Motors. It explores the concept of Global Virtual Teams (GVTs) as a means of building networking, lowering costs, and increasing operational efficiency. The report delves into the role of culture in international business, examining key organizational and national cultural characteristics, as well as the challenges and opportunities of managing a diverse global workforce. It further discusses factors contributing to a globalized economy and the training required for a global workforce. The report highlights how General Motors leverages GVTs and adapts to cultural differences to succeed in the international market, focusing on leadership, communication, and the importance of understanding diverse cultural values and norms to drive business performance and achieve a competitive advantage in the automotive industry.

International
Management

Executive Summary
People today live in an era of digitalisation which reflects that everything in today's
world is connected via internet and people across the world have access to internet every time.
Also, as information and technology continue to assist companies by bringing changes rapidly, it
becomes easier for organisations in the digitalise world to build interaction. Also, information
and communication technology largely provide the resources for individuals and groups from
different parts of the world to collaborate and work effectively removing the barriers of cultural
and geographical diversities. Connecting with people from various cultural and national
backgrounds has become very popular in today's world and this has given rise to the
phenomenon called Global Virtual Teams (GVTs). This report is based upon General Motors
which is an American multinational corporation that manufactures, designs and distributes
vehicles and its parts across different parts of the world. This company largely realise the
concept of Global virtual teams as a means of building networking with people across the globe,
lowering the cost of global collaboration and enabling efficiency of operations within the
organisation. Company execute this concept by developing effective leaders that can ensure
timely and efficient implementation of these teams.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
Concept of Global Virtual Teams...........................................................................................1
Role of culture in international business................................................................................2
Key organisational and national cultural characteristics........................................................3
Challenge and opportunity of managing a diverse global workforce.....................................4
Factors that contribute to the notion of a globalised economy...............................................5
Training required by global workforce...................................................................................6
CONCLUSIONS..............................................................................................................................6
REFERENCES................................................................................................................................7

Topic- International Management, an analysis of General Motors
INTRODUCTION
International management is the process that requires skills, knowledge and competence
over and above the normal business expertise to gain information about international economies
and ways to effectively conduct business operations across the globe. Global Virtual Teams is a
phenomenon that many business organisations are adopting so as to work collaboratively with
the professionals across different parts of world. The present assignment is based upon General
Motors which is one of the leading manufacturers in automotive industry headquartered at
Detroit. This report gains an insight into the ways these teams have changed the traditional way
of working and management. Also, it explores the challenges that these virtual teams pose and
the ways by which an effective leadership can be developed that ensures the efficient
implementation of this concept of increasing networking across the globe.
TASK 2
Concept of Global Virtual Teams
Any entity by making use of its networking channels can build effective relationship with
professionals spread across the world and tap the advantage of skills, competence and knowledge
of these personnel to conduct business operations globally (Hoch and Kozlowski, 2014). This
gives rise to the concept of Global Virtual Teams which is an effective way of conducting
operations of entity in different parts of the globe. Such teams have transformed the way a
business used to conduct activities in past. General Motors have largely made use of this
phenomenon to gain knowledge and experience from different countries to get expertise in the
area of vehicle manufacturing so as to become the top company in automobile industry. Also, the
company build effective communication with professionals in various geographical locations so
as to take suggestions from them in relation to an effective conduct of business performance. For
the implementation of this concept, it is required by the business to build effective leaders who
can ensure a proper networking between these individuals and groups. In the digitalised world,
leaders are facing unforeseen opportunities as well as challenges while striving to reach their
objectives. This leads to organisational restructuring along with modified working pattern for
individuals as well as entities. This requires an effective leadership which can align the
behaviour of individuals of company towards building a networking channel with professionals
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all across the globe. Thus, leaders need to develop new ways of organising things so as to make
the organisational hierarchy clear to personnel of GM. In this way, through building an effective
leadership, company can look at ways of gaining help and suggestions from professionals across
the world with the aim to develop new solutions for meeting the demands and needs of
customers. Consequently, organisations strive for competitive advantages through tapping the
merit of leaders in own enterprise along with experts from other countries.
Role of culture in international business
Culture is a set of values, norms, beliefs, customs and notions that individuals in a
particular group possess which shape their way of thinking and behavioural conduct towards an
idea or activity (Stahl and Tung, 2015). Every organisation has a different culture depending
upon the set of beliefs and values it possesses towards the community and environment.
Managers and leaders in an enterprise need to possess in-depth knowledge of all the aspects of
organisational culture. They must possess the tactics to implement the organisational culture in
the behavioural pattern and performance of employees of an entity. In relation to General
Motors, management has developed a corporate culture where the authority and responsibility of
each individual within the organisation is clearly specified. This allows effective flow of
necessary information within and outside the premises of enterprise. This is done by building
strong communication with various talented and competent professionals across the world. This
helps the company in collaborating the experiences and knowledge of various individuals and
then making certain necessary decisions (Papadopoulos and Heslop, 2014). These may include
the choice of processes, tasks, methods and techniques to carry out the manufacturing process
effectively such that there is least wastage and no harmful effects towards the environment like
carbon footprints.
For any business entity to ensure its sustenance in market for a long duration of time, it
has to bring changes in its methods of conducting business operations on a regular basis so that
entity remains in alignment with the developments and advancements taking place in industry.
Also, for a business to conduct activities in international markets, it has to take into account the
perceptions, trends, norms and economic conditions of that country. Every business entity has
diverse set of variables that govern its working. These must be in accordance with the rules and
regulations, taxation and economic policies of the new country (Aggarwal and Goodell, 2014).
Most important consideration in this regards is the difference in culture. Conducting international
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business requires reconciliation of cultural differences of various geographical locations where
business want to carry out activities. This helps in effectively conducting the operations
internationally with the aim to target new segment of audience so that General Motors can
increase its sales revenue. Company need to adopt norms that comply with the culture of country
where the entity expands its business. It is vital for GM to move into new areas in a manner that
reduces the cultural differences and bridge the gap between business units performing in multiple
cultures.
Key organisational and national cultural characteristics
It is essential for any company to take into account the cultural characteristics of the
countries where it wants to expand its business so that they effectively carry the operations in
international markets. In relation to this, many organisational and cultural characteristics affect
the business across the globe. National culture includes a variety of elements that directly impact
the business activities and processes of General Motors in various geographical locations. These
are social structure, language, communication, religion, values and attitudes (Lee, Vargo and
Seville, 2013). The interaction of these elements comprises the national culture. Different
individuals and groups in a society have different social structure which reflects the role of
individuals, its stratification and mobility in society. One of the major aspects of this is the
constitution of family. Where some countries promote nuclear families, other countries may
emphasize upon inclusion of aunts, cousins etc. also in family. Language is another important
national characteristic that defines the way members interact in an economy. Population of a
country consists of a number of individuals that have diverse languages which need to be
reconciled by General Motors while going international. Communication is yet another essential
component which is important for General Motors to ascertain the views and opinions of people
in relation to their needs and wants for the vehicles manufactured and designed by enterprise.
Religion of various individuals and groups existing in society also need to be determined by
company to gain an insight into and forecast the demand of cars and other parts manufactured by
entity. In the same manner, values and attitudes of people that are a part of an economy also
affect the conduct of business operations by General Motors in Asia and Europe.
Organisational characteristics such as workplace etiquettes, organisational hierarchy and
vision of company also impact the conduct of operations of General Motors in international
markets (Vaara and et. al., 2012). By ensuring workplace confrontation, compliance with rules
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and regulations of statute and entity and achieving pre-decided performance standards, company
can look at effectively performing the operations of business across the globe. Also, with clear
specification of the responsibilities and authorities of personnel in General Motors, company can
consider reaching the international markets effectively.
Challenge and opportunity of managing a diverse global workforce
One of the major concerns of any business organisation is workforce diversity as any
enterprise consists of a number of individuals that communicate within the premises. In today's
world, it is necessary that organisations understand the behavioural characteristics of the
employees of General Motors and ascertain the diversities so that these can be removed to
conduct business operations effectively. Increasing globalisation in present context also further
increases the workforce diversity. Global workforce may be diverse because they are possessing
different national and cultural characteristics. Organisations like General Motors that conduct
business operations internationally need to give more attention towards the diverse cultures,
beliefs, and backgrounds of personnel of the organisation. People now don't live and work in a
marketplace where there is monopoly of operations, instead they function in an environment
which is highly competitive and keeps on changing with the upcoming trends in technology and
industry.
Opportunities
There are a number of opportunities associated with diversity at workplace. It is
beneficial to both employees as well as entity. With respect to General Motors, diversity gives
rise to exchange of various different types of cultures, opinions, views, thoughts, experiences and
working patterns (Okoro and Washington, 2012). Although the employees which are a part of
General Motors are largely interdependent for various functions in relation to entity, by
respecting the differences that are there between personnel, company can tap the advantage of
individual expertise. This will lead to an increase in efficiency of personnel in an entity which
would reflect the overall timely and effective realisation of goals. In an era when flexibility and
creativity are the essential elements to ensure competitiveness in marketplace, diversity is critical
for an organization’s success. Diversity at workplace can reduce lawsuits and increase marketing
opportunities, recruitment, creativity and overall corporate image of General Motors.
Challenges
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Even though there are many opportunities for a diversified global workforce, there are
many challenges that an entity comes across while dealing with such workforce. Managing
diversity is more than just ascertainment of diversities between personnel of an entity. It is a
process that includes recognition of values and beliefs, promoting engagement of staff,
combating the issues like discrimination and inequality which give rise to differences between
employees (Barak, 2016). Also, managers may at times face challenges in relation to
productivity decrease due to factors like prejudice and discrimination as well as complaints and
legal actions taken against the entity. Also, many a times, negative beliefs, attitudes and
behavioural patterns of employees or managers can act as barriers towards effective performance
of team as well as General Motors. Also, there should be measures taken by the leaders in
General Motors to deal with issues like gender or caste stereotypes.
Factors that contribute to the notion of a globalised economy
In today’s digitalised world, there are many factors that foster the process of globalisation
and also the businesses to take its operations to a larger scale in international markets. Rapid and
sustained technological change has reduced the cost of transmitting and communicating
information which serves as a key factor behind trade in knowledge products using web
technology (Damro, 2012). Also, the desire of businesses to benefit from lower unit labour costs
and other favourable production factors in other parts of the world encourage companies like
General Motors to adjust their tax systems to attract foreign direct investment (FDI).
Furthermore, many countries have become engaged in tax competition in a bid to win lucrative
foreign investment projects. Also, old forms of non-tariff protection such as import licensing and
foreign exchange controls have gradually been dismantled as a result of which borders have
opened up and average import tariff levels have fallen so as to foster the process of globalised
business operations (Moldan, Janoušková and Hák, 2012). By gaining suitable knowledge about
the diverse cultural and national characteristics of individuals, teams can together work
effectively so as to deliver quality results with an aim to get maximum satisfaction from
customers. By being aware of the diversities among themselves, individuals can develop a sense
of cohesion and create team building spirit to ensure effective and efficient performance of
company.
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Training required by global workforce
Even with the best of intentions, business entities like General Motors make use of
training and development program so as to communicate to employees the way of interacting
with cross national and cultural people. General Motors provide Cross-Cultural Training
programme to its employees. This is done with the aim of equipping personnel of company with
knowledge about organization's home culture as well as the cultural characteristics of various
people and nations dealt with during the process of communication with professionals all across
the globe (Training and Developing a Global Workforce, 2018). Also, company focus upon
Acclimation which is a mentoring programme that provides skills to employees to adjust in new
environment with a whole new set of people.
CONCLUSIONS
From the above report, it can be concluded that the management of any entity that is
conducting its operations in international markets is necessary. Also, it has been analysed that
there can be differences between the workforce of origin country and location where expansion
is conducted. These differences owe to the different national and cultural characteristics of
personnel at both places. Also, it can be observed that virtual teams are a good way to tap
advantage of various professionals spread across the globe by making use of their expertise,
knowledge and competence to bring improvements in operations of company.
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REFERENCES
Books and Journals
Hoch, J. E. and Kozlowski, S. W., 2014. Leading virtual teams: Hierarchical leadership,
structural supports, and shared team leadership. Journal of applied psychology. 99(3).
p.390.
Stahl, G. K. and Tung, R. L., 2015. Towards a more balanced treatment of culture in
international business studies: The need for positive cross-cultural scholarship. Journal
of International Business Studies. 46(4). pp.391-414.
Papadopoulos, N. and Heslop, L. A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Aggarwal, R. and Goodell, J. W., 2014. Cross-national differences in access to finance: Influence
of culture and institutional environments. Research in International Business and
Finance. 31. pp.193-211.
Damro, C., 2012. Market power europe. Journal of European Public Policy. 19(5). pp.682-699.
Moldan, B., Janoušková, S. and Hák, T., 2012. How to understand and measure environmental
sustainability: Indicators and targets. Ecological Indicators. 17. pp.4-13.
Vaara, E. and et. al., 2012. The impact of organizational and national cultural differences on
social conflict and knowledge transfer in international acquisitions. Journal of
Management Studies. 49(1). pp.1-27.
Lee, A. V., Vargo, J. and Seville, E., 2013. Developing a tool to measure and compare
organizations’ resilience. Natural hazards review. 14(1). pp.29-41.
Okoro, E. A. and Washington, M. C., 2012. Workforce diversity and organizational
communication: Analysis of human capital performance and productivity. Journal of
Diversity Management (Online). 7(1). p.57.
Barak, M. E. M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.Training and Developing a Global Workforce
Online
Training and Developing a Global Workforce. 2018. [Online]. Available Through
<https://www.24hourtranslation.com/training-and-developing-a-global-
workforce.html>.
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