Chap 17Managerial & International Opportunities for Engineers

Supervisory Responsibilities of EngineersAge No Sup.

Respon.Staff

Superv.Superv. Of Team

Major Div.

25~30 38% 25% 31% 7%

30~35 22% 21% 41% 16%

35~40 16% 18% 41% 25%

40~45 12% 16% 36% 37%

45~50 12% 15% 32% 40%

50~55 13% 16% 29% 42%

55~60 14% 17% 27% 43%

60~65 17% 16% 25% 42%

Need for Engineers in Top Mgmt.

0.00%

5.00%10.00%

15.00%

20.00%

25.00%30.00%

35.00%

40.00%

45.00%50.00%

Engineering Science Business

US 1990

US 1986

CND 1990

Should You Choose Management?Financial advancementAuthority, responsibility, & leadershipPower, influence, status, & prestigeAdvancement, achievement, & recognitionFear of technological obsolescenceRandom circumstances

Dual Career LadderDirector Principal Engineer

Manager Sr. Specialist

Supervisor Engineering Specialist

Sr. Engineer

Engineer

Jr. Engineer

Preparing for Managerial Responsibilities

RequirementsCompetence in current assignmentAbility & willingness to take on greater resp.Preparation for new assignmentMatch capabilities with needs of organizationPerceived management skills

Formal degree programsNon-degree courseworkExperiential training

Multi-national OrganizationPhilips (94% sales outside Netherlands)L.M. Ericsson (81% outside Sweden)Sony (66% outside Japan)Siemens (51% outside Germany)Foster Wheeler (72% outside USA)M.W. Kellogg (59% outside USA)IBM (59% outside USA)Dow Chemical (54% outside USA)Xerox (54% outside USA)Hewlett-Packard (53% outside USA)

Multi-national OrganizationManagement faces differences in

National sovereigntyNational economic conditionsNational values and institutionsTiming of national revolutionsGeographical distancesAreas and population

Japanese Management StylesRecruitment of employees directly out of secondary school or college"Lifetime employment" (full-time only)Promotion infrequent & based on seniorityRestricted employment for older workers"Michi" master even small task"Giri" a sense of honor or obligation to observe community (company) customs

Japanese Management StylesComplete company concerns: family support, housing, recreation, social & cultural events, festivitiesCeremonies & rituals to foster love of comp.Rotation between functional dept."Omikoshi" having middle & lower levels plan new projects on their own initiative"Ringi" having people sign on the bottom-up proposals

Europe and the Common Market

Opened in January 1993 for single marketSingle currency: euro

International Trade Agreements

North American Free Trade Agreement (NAFTA)GATTPacific rim

Before NAFTAMexic

oU.S. Canad

a

Population (1992, M) 90 254 27

18-year-olds (1992, M) 2.0 3.2 0.4

GDP (1992, B, US$) 334 5951

552

GDP/person (1992, US$)

3.6K 23K 21K

Hourly Labor (1992, US$)

2.5 16.2 17

Avg. Productivity Increase (1988~92)

6.3% 3.0%

NA

Before NAFTAMexic

oCanad

aAll

Trade (1992, B) U.S. to 41 91 448

Trade (1992, B) U.S. from

35 98 533

Tariff, U.S. to (1992) 10% ~0

Tariff, U.S. from (1992) 4% ~0 4%

NAFTANAFTA is a comprehensive rules-based agreement among the United States, Canada, and Mexico that took effect January 1, 1994. It was signed by the governments of the United States, Mexico, and Canada in December 1992 and ratified by the U.S. Congress in November 1993. The Agreement eliminated many tariffs immediately while other tariffs will fall to zero over a 5 to 15 year period. This Agreement broadened and superseded the 1989 free trade agreement between the United States and Canada.

NAFTA (Additional benefits)It opened previously protected sectors in agriculture, energy, textiles, and automotive trade. It opened up the U.S.-Mexico border to trade in services with specific rules in finance, transportation, and telecommunications. It set rules on government procurement and intellectual property rights. It set specific safeguards, including how to deal with subsidies and unfair practices; it set up procedures for dealing with private commercial or agricultural disputes; and it set up a process for dealing with NAFTA implementation concerns.

5 years after NAFTAMexico continues to make far more significant changes to its economy because of NAFTA than the United States. Mexican tariffs on U.S. goods averaged 10 percent in 1993 while U.S. tariffs on Mexican products averaged 4 percent. Mexico is moving its rules on investment closer to those in the United States.NAFTA has continued to open the U.S.-Mexico border to increased commerce. Two way trade between the United States and Mexico has risen 113 percent from the year before NAFTA was implemented (1993) to its fifth year (1998).

5 years after NAFTAU.S. employment has risen, and the level of unemployment has decreased during the first five years of NAFTA.

General Agreement on Tariff & Trades (GATT)

More comprehensive124 nations involvedIn effect over 50 years

Management in Developing CountriesCharacteristics:

Shortage of capitalGovernment planning of economyShortage of skilled labor & support service High level of gov't control of foreign subsidiariesCultural differencesDifferent preferences in leadership styleFamily relationsWorking attitude

Management in Developing CountriesEthical considerations

BriberyPollution controlEqual opportunity