Aileen MacMillan

The phrase “it’s a small world” takes on new relevance in today’s business environment. As time goes by, we seem to become more interconnected, regardless of our geographic location. Not only are companies expanding more broadly around the world, workers are also becoming increasingly mobile. For example, U.S. Office of Immigration statistics indicate that in 2006, 702,589 people in the U.S. naturalized. “The leading countries of birth of new citizens were Mexico (83,979), India (47,542), Philippines (40,500), China (35,387), and Vietnam (29,917).“ Widespread immigration is not unique to the U.S. and is occurring in many countries around the globe.

In the report The Future of Companies, David A. Smith points out that “mass migration” of workers can help create new markets, “lower unit labour costs for a while” and spur innovation. Migration may also lead to a transformation in management practices and Smith writes that “coping or otherwise with differing religions, customs and even language will go a long way to differentiating successful business from the failures.”

Migrating workers bring with them new skills, innovative ideas and new perspectives which can help the organizations that hire these workers compete more effectively in an increasingly interconnected world. According to the Chartered Management Institute report Management Futures The World in 2018, “organisations will have to be increasingly knowledgeable about world markets as financial affairs and interconnections between seemingly independent events may have a dramatic effect on their business.”

What does this mean for performance management? It means that processes, policies and procedures need to be reflective of the work and life pressures, religious beliefs, language differences, cultural norms and expectations that impact all employees while balancing the fact that they will differ for each employee and will differ between locations.

A shared concern, however, can present itself in many different fashions. Demographics are a good example. According to The Future of Companies, “of the major economies, only India will see a gain in the share of the 15-59 age cohort in the period to 2050, according to U.N statistics.” Other countries – according to the report – such as Australia, the U.S., U.K., and China will experience a decline in numbers for this age group. In light of this information, performance management and employee retention practices will likely vary depending upon the country in which an organization is operating, although all will consider the implications of changing demographics.

Another example can be gleaned from a National Post article. According to a University of Toronto study highlighted in the article, “researchers expected Chinese managers to put more weight on collectivist work habits, the managers instead put more importance on getting jobs done and favoured individualistic job performance qualities even more than Canadian managers.” Therefore, the role of cultural expectations and country-based norms and standards and the impact on employee expectations must be considered and evaluated carefully.

References:

Chartered Management Institute. Management Futures The World in 2018. UK: Chartered Management Institute, March 2008.

“Grow.” National Post [www.nationalpost.com]. March 1, 2008.

Simansky, John. “Naturalizations in the United States: 2006.” Annual Flow Report. Office of Immigration Statistics, May 2007.

Smith, David A. The Future of Companies. Global Futures and Foresight and Shirlaws, 2007.

Talwar, Rohit. The Future of China’s Economy. Global Futures and Foresight and Fast Future, March 2007.