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In today's context, management can be referred as setting of groups of activities to be planned effectively and to achieve it in the future. While leadership is an ability to influence the people to make right decisions based on the planning and keep employees on track to achieve the goals.
This essay is based on the way of managing people in international organizations. Leadership, management, and motivation concepts will be identified to get a better understanding of how they will work in international organizations. It is essential to understand international management and leadership to manage the people effectively and efficiently.
The description of the role of leadership and management in an international organization is demonstrated here. A detailed description of the effective management & leadership theories will be identified. The factors that affect the motivation of employees at the workplace will also be analysed. Further, theories of motivation will also be identified to have an in-depth understanding of how these theories work in international organizations. The impact of these threes’ concepts will also be described in detail while providing recommendations to improve it.
Leadership plays a vital role in an international organization that enables them to direct the employees while improving their productivity and the achievement of goals. It is important for the global business because they are accountable for generating the right situation for their personnel to grow and inspire them to do so. Leadership has a positive impact on global organizations (Abrahms and Potter, 2015). As they provide admittance to information & globally gather cultural information daily. This will help the employees to learn more about the differences in the workplace which then allow them for accomplishing the work effectively.
Management refers to a process or task of understanding, analysing, and designing the policies, structures, procedures, and systems to co-ordinate and motivate the people internationally. To expand the business internationally, management is very important in the globalization process (Remzi et al., 2020). It contributes to the decision-making process for the creation of the global brand image. The concept of international management is a process of managing business operations in an association allocating markets & functioning in more than one country.
The role of leadership in an international context allows the workforce to understand the cultural differences which improve their productivity as well (Castillo and Hallinger, 2018).
The role of management in an international context helps an organization in the creation of a global brand image.
International managers are involved in influencing a group to make them understand to meet the organizational goals and objectives.
When the leaders are comprised in scheduling, establishing, recruiting, directing, controlling, and coordinating the activities globally then they are involved in international management.
The role of leadership in an international organization is to develop and retain the talent within the organization. It also enables the employees to set strategic priorities to effectively achieve organizational performance. It has been analysed that leadership also inspires and motivates the people to understand the culture and environment in an international organization. The role of HR leader helps to reach out strategic goals and objectives by providing innovative leadership techniques. A leader in an organization inspires people to make effective decisions. HR leaders are the mediators between top management and employees to connect them to make effective decisions.
The role of an international manager is to oversee the operations in the business across the world. The top-level managers develop, maintain, and allocate the resources as per the needs of the business globally to achieve organizational goals. In the globalization process, management plays a key role in contributing to the formation of a worldwide image (Mansaray, 2019). The main roles and responsibilities of a HR manager in an organization is to provide an outline to the employees to meet with the objectives and goals at the end of the process. The HR manager provides training & development, recognition, rewards, workplace safety, and talent management to encourage the employees to work better.
This theory suggests that certain inborn or innate characteristics and traits make someone a leader. In an international context, this theory can help an employee to develop or improve traits as per the requirements of an organization. The qualities that are inborn or innate might be physical, intellectual, and personality factors. It has been identified that trait theory provides productive information about the leader (Wyatt and Silvester, 2018). According to this theory, the core traits that have been identified include self-confidence, honesty & integrity, emotional maturity, cognitive ability, achievement drive, leadership, and motivation. This theory enables an organization to prepare its workforce for international business because it oversees the traits and then develops the abilities according to the requirements of an international business.
A contingency theory refers to a process or an organizational theory that entitlements that not every method suits a company to lead or to take decisions. It suggests that the optimal action is dependent upon the internal and external situations. It has been identified that according to this theory, an individual can be an effective leader in one situation and an unsuccessful leader in another one (Abba, Yahaya and Suleiman, 2018). International organizations use this theory of leadership to manage the current situation appropriately.
This theory states that there is no single apt way to lead or inspire the people for the achievement of goals in an international business. It depends on the current situation circumstances and on the leadership styles & behaviours of an individual. It has been identified that an organization can use this leadership theory to manage the situation in an international business (Salihu, 2019). The most important characteristics of a situational leader include regular coaching, encouraging participation, direction, honesty, flexibility, and delegation. The core elements of situational leadership that can be used to inspire the employees internationally include telling, selling, participating, and delegating.
In 1960, McGregor has formulated theories X and Y. This idea proposes two alternative views of employees or two characteristics of human behaviour at work: negative & positive. Some international organizations have been used this theory to motivate the people. Because theory x assumes that people naturally dislike their work. In an international organization, theory x assumes that the employees avoid responsibility, dislike their work, and need supervision at every step (Senarathne, 2020). Theory Y is just the opposite of what theory X believes. This theory can apply in an international organization by the HR manager to identify employee's skills sets and competencies. According to theory Y, employees have frequent opportunities for promotion. While using this theory of management, the organizations have been using participating management style. This management style involves all the employees in the decision-making process which improves productivity.
Henry Fayol’s administrative management theory is a model to identify how management interacts with employees. In an international business context also, it can help an organization to develop and improve the capabilities of employees as per the needs of the business. Henry Fayol has suggested 14 principles of management that should be applied by the international organization to accomplish the work effectively (Adam and Suleiman, 2018). With these principles, an organization can easily successfully its operations in other parts of the world. Equity, initiative, scalar chain, unity of direction, remuneration of personnel, discipline, power and responsibility, work division, unity of command, esprit de corps, centralization and decentralisation, individual interests subordinated to the greater good, and tenure stability are the 14 principles of scientific management theory. While expanding the business globally, these principles can be used by organizations to manage things effectively & efficiently.
This theory suggests that there is one right to do something in an organization. According to this theory, every aspect has one right solution in an organization with which they can effectively run the business in the long run. In the context of international business, when an organization thinks to expand its business, they can use such management principles as harmony does not discard, science not a rule of thumb, cooperation not individualism, division of responsibility, maximum output, and development of employees. In an international business context, this theory suggests that there must be defined ideas and fixed principles to work effectively rather than depending on hazy ideas (Mustafa, Nordin and Razzaq, 2020).
Managers and leaders can motivate employees to improve business performance by appreciating them for the work they have done. Leaders can solve the problems of their team members on an individual basis as well as on an organizational basis to adjust them with the work. Managers and leaders play different roles in an international organization. A leader is a person who tackles a group of people and influences them to achieve a goal. On the other hand, a manager is a person who plans the activities for the organization and directs it to attain the objectives on time. Leaders can motivate the employees in an international business by aligning values & purpose, communicating with them, setting short-term goals, empowering them, and offering incentives while recognizing their work. With the help of all these aspects, there will be an improvement in employee performance.
In an organization, motivation is used to inspire and encourage people that drive & excite employees which results in the maximum contribution and improve business performance. Recognition, feedback, setting & achieving goals, and clear expectations are all contributing to increasing motivation at the workplace. In an international context, the term motivation is very important at the initial stage to influence the employees and help them to adjust to the new environment (Heimer, Alheid and Zahm, 2019). It has been identified that motivation plays an important role in a human's life whether it is related to organizational performance or individual performance. For example, Unilever is a multinational company that has been motivated to its employees by tracking the performance of employees or employee's interview. Based on the results they have been rewards their employees to boost their productivity in the organization.
In the international organizations, the HR manager can motivate the employees with the following factors:
The below theories must be used by the HR in an organization to satisfy the needs of employees to keep them motivated for their work.
This is the basic level of motivation that is being by the organizations globally. It includes five categories of human needs that dictate an individual's behaviour. In an international context, the five levels of motivation must be fulfilled by an organization. The level of satisfaction is based on those five-level needs. Such as love and belonging, safety & security needs, esteem, physiological needs, and self-actualization need. It has been identified that to improve business performance, all the levels of Maslow's hierarchy theory must be fulfilled by an international organization (Shepard et al., 2018).
Figure 1: Maslow's need hierarchy theory
This motivation theory has suggested two main aspects that are very important for the satisfaction of employees. Motivating and hygiene factors both are important for employee motivation in an international context also. Some examples of hygiene and motivation factors include:
It has been identified that this theory can be applied by international organizations to motivate employees to improve their performance. It has been analysed that high hygiene and high motivation increase the level of employee satisfaction. This is the best statistics of employee satisfaction from their job out of four such as low hygiene & low motivation, low hygiene & high motivation, and high hygiene & high motivation.
This theory suggests that employee motivation is an outcome that shows how much an individual needs rewards (Valence), the exertion that will lead to predictable performance (Expectancy), and the credence that the recital will lead to rewards (Instrumentality). It has been identified that expectancy, valence, and instrumentality are the three elements of vroom's expectancy theory (Brand and Cheval, 2019). Based on these three elements, international organizations find out the level of satisfaction of the employees from their job. It has been identified that the work motivation of employees is dependent upon the perceived relationship between results & performance and adjust their performance based on their intention of expected results. In an international business, they can apply this theory of motivation by:
Usually, while going internationally people match their abilities and competencies to work with each other. Equity theory deals with the value of people with one another based on their inputs and outputs to achieve organizational performance effectively. It has been identified that equity theory considers the concept of equality & parity as well as the importance of contrast to others. The basic principle of this theory is how employees equate themselves with the other person in terms of two things: effort and rewards. So, this theory is also used by the international organization to motivate employees by treating equally with the entire workforce.
In an international context, there are many aspects that have an impact on organizational performance such as recruitment policy, human resource planning, training and career management, education of the employees, organizational policies, and technologies. Some factors that have a positive impact on the performance of an organization include:
It has been concluded that leadership, management, and motivation are important concepts to lead or manage people in international business. It has been identified that international leaders influence the employees to work towards the attainment of goals while solving their problems. On the other hand, international managers facilitated leadership by providing a planned structure of activities which includes delegating authority and responsibilities to all the team members. It has been identified that leadership theories provide guidance to the employees to achieve the targets effectively. It has been also analyzed that motivation theories enable to inspire the employees with many factors such as recognition, rewards, good relations with the employees, better working environment, training, and development of employees, and so on. It has also been found that increase in productivity have a positive impact on the organizational performance.
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