Master's Thesis from the year 2017 in the subject Business economics - Business Management, Corporate Governance, grade: 2,0, Buckinghamshire New University, language: English, abstract: The purpose of this thesis is to develop suitable training measures for the area of Global Mindset development in the field of psychological capital by eliciting the experiences of German managers. Fundamentally, the analysis is based on the individual level of Global Mindset. The new theoretical lens from psychological capital is employed to gain new insights into further development of a global mindset through a qualitative research approach.
The qualitative approach is implemented through in-depth interviews of 10 German managers with several years of management experience from major established companies.
The results are that the training of Psycap has to be on the emotional level. Also the generation of the people has an influence on the training. Another important and new finding is that the self-reflection and individualizing of an individual promotes the sustainability process of psychological capital.
The formerly localized trade has changed to a global one over the past few years. Ultimately, this has been accelerated by the revolution in information technology (Xiaohua, et al., 2016); (Clapp-Smith, Global Mindset Development During Cultural Transitions, 2009). Through global networking and its possibilities of communication, a transparent world market is ensured without restriction of longer durations within the information flow (Nummela, Saarenketo, & Pulamanainen, 2004). Through the new affiliated economic regulations, companies are forced to tackle global competition and to expand their own competitive advantages (Javidan & Walker, Developing your Global Mindset, 2013). The competition caused by the globalization process has led to a distortion of the company's structures so that they not only offer their products globally but also have to carry out strategic production and development processes across countries (Hruby & Hanke, 2015).
Globally-oriented companies are using production services of any kind across countries. Focus of the objectives of cross-country operating companies are cost saving through resources and efficiency based on their value chains (Gupta & Govindarajan, 2014). The basic problem is to gain a consistent and unadulterated flow of information by means of geographic separate interfaces and decentralized integration (Pankaj, 2009). Incorrect interpretations and misunderstandings interfere with the flow of information and slow down the productivity and efficiency of the entire value chain. The exchange of information as well as their further processing over different cultural circles requires a "global mindset", which is described in broad literature as "Global Thinking and Empowerment" (Hruby D. J., 2013).
Levy et al. (2007) describes Global mindset as "highly complex cognitive structure characterized by an openness to and articulation of multiple cultural and strategic realities on both global and local levels, and the cognitive ability to mediate and integrate across this multiplicity."
Only with this global mindset it is possible to avoid obstacles of action and information misrepresentations in intercultural activities (Javidan & Walker, Developing your Global Mindset, 2013). Leaders have the opportunity to expand and strengthen their global mindset and structure in order to understand complex culture-related problems and to solve them with appropriate measures (Nummela, Saarenketo, & Pulamanainen, 2004). According to Javidan (2013, S. 13), companies with globally-oriented managers have a significant competitive advantage across companies without a global mindset. This is justified by the increase of efficiency within the framework of communication across different cultural circles. Thus, from this context, the key qualification of the Global Mindset as a long-term core element can be viewed as part of the global world trade, with which competitive advantages can be built up against the competitors (Mathews, 2016). In particular, large global companies are striving to integrate the Global Mindset into their development processes as part of their human resources development (Pankaj, 2009).
In the last few years, the theme of Global Handicap Competence is taken up and described by various authors (Ananthram, 2014) (Kyvik, Saris, Bonet, & Augusto Felicio, 2013) (Javidan & Walker, Developing your Global Mindset, 2013) (Gupta, Govindarajan, & Wang, 2008). This led to a variety of theoretical approaches and theories, resulting in different definitions could be derived for the term "GLOBAL MINDSET" (Nummela, Saarenketo, & Pulamanainen, 2004). According to Hruby (2013, S. 11-12), Global Mindset is largely attributed to cognitive psychology.
The resulting problem can be explained by the fact that the area of psychology is intangible and difficult to define quality of each individual (Clapp-Smith, Global Mindset Development During Cultural Transitions, 2009). Investigations by Javidan (2013) have resulted in an order of implementation proposals for the quantification of qualitative characteristics. Within the framework of the work of Javidan (2013), a scoring model with simplified point allocation was developed. In the Global Consultation of this schematic presentation, companies involved in the Javidan´s (2013) model are globally able to establish themselves. Nevertheless, this presentation is viewed critically in the general theoretical Landscape of the Global Mindset. This is due to the inaccurate quantification characteristics at individual level. Previous research has shown that the development of long-term global competitive advantages is in line with the Global Mindset on management level (Clapp Smith, Vogelsang Lester, & Meghna, 2016).
The resulting need for consultancy to promote Global Mindset has grown exponentially in recent years. Companies strive to incorporate and manifest the right guide to the measurement and accompanying support of the global mindset of their leadership in their company (Javidan & Walker, Developing your Global Mindset, 2013). Consultancy and executive education (development) programs currently in place are structured statically over a limited period of consulting.
According to current theorists, the psychological capital is important in this developmental context (Luthans, Youssef, & Avolio, 2007). Nevertheless, this has been largely neglected in the research so that a high research need arises here. Rather, this context of the psychological chapter has to be researched to understand the connections of the Global Mindset theory and to realign complex connections (Gülen, Erdil, Deniz, & Alpkan, 2015).
According to the general psychological theory, developments in this area are indispensable over a longer period. This is not consistent with current short-term executive or management development programs (Luthans & M.Youssef - Morgan, Psychological Capital: An Evidence - Based Positive Approach, 2017).
The deals with this elaboration, according to development measures which can be integrated into the corporate structures. In particular, the focus will be on the individual promotion of Psychological capital as part of Global Mindset development. Numerous previous studies and elaborations are linked here and any gaps in theory are taken up (Mathews, 2016).
This paper is contributed to the work of Psychologycal Capital from Fred Luthans (Luthans & M.Youssef - Morgan, Psychological Capital: An Evidence - Based Positive Approach, 2017). The studies by Luthans et al. (2007) show the importance of skills to promote the Psychologic Capital of the Global Mindset, but there is a lack of studies in the training measures to promote them (Gülen, Erdil, Deniz, & Alpkan, 2015); (Luthans & M.Youssef - Morgan, Psychological Capital: An Evidence - Based Positive Approach, 2017); (Luthans, B.Avey, Avolio, & Peterson, 2010) ; (Maznevski & Lane, 2004).
Also, the Framework of the Training solutions is not clear (Javidan & Bowen, The 'Global Mindset' of managers: What it is, why it matters, and how to develop it, 2013). The Empirical qualitative study is carried out with the help of qualitative interviews with 10 executives who are active globally oriented companies. The author is limited to the range of medium-sized companies in Germany, where managers of the middle management level are used. The primary data that can be determined are thus limited to German globally operating companies. This lends the generated output to German companies. An implementation to other companies abroad is not possible. Rather, in the future primary data surveys, data must also be used to compare these and, if necessary, to show differences. The goal is to generate a new qualitative data consistency and derive from these theories. With the help of the "grounded theory" and its tools this is implemented. It is intended to provide the basis for a quantitative subsequent exploration of this particular segment.
The overall general research question of this thesis is to answer:
"How can managers develop their psychological capital". Further specific research questions are elaborated after first interviews and emerged during this field study.
It is important to research largely in the field of psychological capital, since it is only in this way that the connections of the Global Mindset can be clearly defended. The exploration of psychological capital is the key factor for the implementation of the Global Mindset theory into the practical environment (Clapp-Smith, J. Avolio, & Luthans, The Role of Psychological Capital in Global Mindset Development, 2007). If the connections can be shown without gaps, these training measures can be derived.
It can be shown that the results of this work are important for subsequent studies; the results for the German international companies are also of great importance since they can influence the results of their work. As a third group, which can make an important contribution to the results of the research work, training institutes are the context Global Mindset teachings. These can take up and further develop the approach to their gaps.
From this overall core research question, four sub-questions have emerged during the research...