Leadership Talents: Responding to Challenges in China - Research Proposal Example

Leadership talents: Responding to challenges in China Name Institutional affiliation Leadership talents: Responding to challenges in China. Leadership is essential in ensuring organizational performance. In developing leadership qualities, practical training is necessary for the employees in the leadership positions. The study will analyze an article that targeted improving talents for global leadership positions in multinational corporations. Introduction The article titled Managing talents for global leadership positions responds to challenges that multinational corporations are facing in China. China has been a major target for many multinational companies such as Apple, Samsung, Hyundai, and other auto companies such as Toyota, Mitsubishi, and Subaru. The article addresses the shortage of skilled talent that poses a significant challenge for multinational corporations that have based their operations in China. Specifically, the lack of skilled talent that can fill the leadership positions for both established or else new multinational corporations present a major challenge (Schmidt et al. 2013). Leadership in organizations is critical in ensuring the company attains the set goals and objectives. To fill these positions, many multinational corporations have either acquired or recruited external talent (Schmidt et al. 2013). Others have identified and developed the internal abilities that work for the company. To be able to develop such talent, these corporations have recognized the need for allocating resources necessary to facilitate such actions. The resources have enabled the creation of talent management programs necessary to develop and nurture future talent that can adapt to global roles as required of leaders in multinational corporations. Literature review Managers of multinational corporations differ from those of other corporations in that they need to possess the qualities of domestic managers and other characteristics that guarantee the success of an organization on a global scale (Schmidt et al. 2013). They need to be aware of the operational conditions and business environment at the local level whereas striving towards accomplishing the organization’s global goal. Since time is a critical factor, many firms have recruited managers from the open global market, but it has presented a challenge as many do not end up being good global leaders. There has been a trend for over a decade now where multinational corporations have invested hugely in other nations the common being Brazil, China and India (Schmidt et al. 2013). China has seen the largest part of economic growth and has become an attractive investment attraction for many of these corporations due to the availability of labor as well as the cheap cost of raw materials. Recent research has identified lack of leadership talent as a challenge for organizations targeting the global market. Talent management for multinational corporations involves identification, selection, recruiting, developing and retaining the high-performing and competent individuals with leadership qualities that matches the organization’s global objectives and aims (Schmidt et al. 2013).. The difference in talents availability within the United States of America and United Kingdom as compared to China is associated with leadership values varying across cultures. Culture plays a vital role in managing talent and developing leadership traits. Concerns by corporations while offering the development programs should be on the influence of culture on the appropriate training techniques, methods and philosophies (Schmidt et al. 2013). Other traits that vary across cultures and can affect human resource management practice include values, language and manner practiced. Multinationals consider two aspects of culture, namely the national culture and organizational culture. National Culture includes beliefs and values that relate to citizens of a particular nation and varies between people of different nationals. Corporate culture, on the other hand, refers to certain beliefs and values that relate to a specific organization where employees of an organization practice similar cultural behavior independent of the country of operation (Schmidt et al. 2013). Culture plays a great part in shaping the organizational practice. Multinationals acknowledge the role of national culture by observing the values and belief while determining the management style and other employment practices (Schmidt et al. 2013). Another area of concern for corporations is the role the national culture plays in shaping the mentality of an employee thus influencing their behavior. Research Aims and Objectives To determine the role of culture in determining the choice of a leader by multinational corporations. To ensure that leader development program is a continuous practice that aims at maximizing the performance of potential leaders. To create a permanent culture where higher functioning individuals learn, flourish and grow by use of a sustainable talent development program. Discussion The research adopted the Straussian school of grounded theory as the methodological principle to gather more insights into the concept of talent management. The study focuses on China as a leading trading partner to Sweden (Schmidt et al. 2013). Findings from the study indicate that many Chinese nationals find difficulty in relocation (Schmidt et al. 2013). The problem that this behavior poses in determining leadership qualities is the fact that in future, leaders are required to carry out international assignments and also engage in job rotations. Cultural ties are the primary beliefs that influence Chinese nationals into this practice. Although talent identification process takes place locally, a similar platform is used globally to judge on the competencies. The challenge of the identification process done locally is that local culture influences it. Paper managerial implications within the UAE The United Arab Emirates is an emerging market that has also attracted many multinational corporations. Policies that encourage foreign investment play a central role in attracting foreign investors to the country. Such policies include ones ensuring minimal trade barriers and tariffs granting traders the freedom necessary to carry out business operations (Schmidt et al. 2013). Free market with less government interference that allows competition between organizations through price war, quality of products and marketing strategy attract multinationals to a country’s economy. Just like China, United Arab Emirates economy has these traits that have made it equally attractive to multinationals as China. Other traits of the economy that has made the economy attractive include stable UAE Dirham and government not restricting exchange of the currency. The country has developed rapidly establishing excellent infrastructure network including the largest man made port in the world, modern communication and free trade zones (Savenius & Jackson, 2016). Although the country has made all these achievements, multinationals are still facing challenges when venturing into the United Arab Emirates market. Research targeting identification of the leadership talent deficiency in the United Arab Arabs Emirates by Oxford Strategic Consulting, discovered deficiency in leadership skills among the Emiratis. The country has seen positive economic growth for more than a decade where the gross domestic product has had a growth of 25% since the year 2002 (Savenius & Jackson, 2016). Equally, the number of business that has emerged in the market has grown rapidly creating leadership positions that need to be filled. Nationals from other countries have been used to fill up these positions. The supply of leadership skills among the Emiratis is insufficient as 64 percent of Emiratis are needed to be leaders to fill up all leadership positions in the country (Savenius & Jackson, 2016). This rate is quite high above the global level of 8 percent necessary for citizens to be in leadership positions in their respective countries. To address the issue of leadership talent deficiency, the Vice Present of the United Arab Emirates, Sheikh Mohammed bin Rashid started a program named Mohammed Bin Rashid Programme for Leadership Development (Savenius & Jackson, 2016). The aim of the program is to develop future national leaders within the UAE who will lead the country towards sustainable development. The action was also targeted at growing local talent that multinational corporations would employ instead of importing foreign talent. A major challenge for organizations in the United Arab Emirates is the shortage of skilled local labor. The number of Emiratis skilled to work in the development project is wanting and it has led to the increase in foreign labor. The competition between the locals and the foreign has limited the former few job opportunities. Many multinational prefer foreign labor that can be .accessed at a cheaper operational cost. For the government to encourage both foreign investment and ensure locals are given equal chance to employment positions, it has reduced the residency time for foreign labor from 3 year residency to 2 years (Savenius & Jackson, 2016). A managerial lesson that United Arab Emirates can adopt from the research is to integrate women in the leadership positions. The United Arab Emirates has a strong cultural believe where women do not take up leadership positions. In the BRIC countries, women have played a crucial role in enabling the development of their respective economies (Savenius & Jackson, 2016). Women as leaders are good at observing market trend and changes and can therefore guide the organization into new ventures through influencing their employers. Research has identified women as more effective in transforming the local success into global scale. The research identified that national culture has a significant influence on the organizational culture. Multinational corporations that venture into the United Arab Emirates market need to be cautious of the national culture. They should ensure that the culture that limits the opportunities for women does not affect the company’s operation. Global companies need to help women overcome cultural and organizational limits that make it difficult for women in the United Arab Emirates to take leadership positions (Schmidt et al. 2013).. Women are limited in their contribution to development in organizations when compared to their male counterparts. When an organization limits one gender in favor of the other, it limits its chances of success. Another lesson that multinationals companies can learn from the research is the role that national culture plays in impacting the way the employee thinks and operates. By influencing the professional behavior, the employees bring a different expectation to the company (Schmidt et al. 2013). In the United Arab Emirates, foreign women employees are limited by the national culture that they rarely expect to be in leadership positions. Multinationals should therefore ensure that the national culture do not limit employees based on their gender. Private companies in the UAE that offer leadership training programs have also advanced their operations in the UAE. Such companies include the Hay Group, Innoverto, and Tanfeeth. Organizations holding their operations in the United Arab Emirates should focus on transferring and implementing a standardized talent identification and development system. This act to ensure that the choices and progress made adheres to the global aim of the company that is sustainable (Schmidt et al. 2013). Talent management goals should be aligned with the business strategies to ensure that the talent identified and leaders developed can drive the organization towards the attainment of it overall aim. Conclusion Different aspects of culture act to limit the transfer of standardized human resource management policies from the home country to the target market. To be able to ensure that the policies that define a given corporations are observed and practiced across all cross cultural boundaries, it is essential for an organization to identify and establish talent identification and leadership development program. References Savenius, N. B., & Jackson, W. S. (2016,). UAE’s challenge to turn youths into leaders. Retrieved March 15, 2016, from http://www.thenational.ae/business/the-life/uaes- challenge-to-turn-youths-into-leaders. Schmidt, C., Mansson, S., & Dolles, H. (2013). Managing talents for global leadership positions in MNCs: Responding to the challenges in China. Asian Business & Management, 12(4), 477-496. Read More