BUSINESS MANAGEMENT 12
It is evident the globe consists of people from different culturesand people who uphold varying values. As a consequence, it isimperative for Business Management teams to focus and take intoconsideration these diversities in order to successfully implementand achieve their overall goals and strategies. The BusinessManagement (BM) team should ensure that the needs of both the localand international levels are met accordingly. It is evident that whenthe Business Management team considers the local and internationalneeds, the requirements of the host nation, as well as the foreignnation will be established.
It is also imperative to note that when the Business Management teamembraces diversity, the corporate objectives both at the local leveland the international level will be met. This diversity by theBusiness Management team will ensure that the team serves differentparts of the world without difficulties. In addition, the BM teamwill gain experience in understanding the various contexts fromdifferent parts of the world and this will enhance service delivery.
Individuals working in any multinational organization are pulledfrom diverse backgrounds, races, ages, ethnicity and other varyingaspects. This calls for management in diversity where all theindividuals are accepted and respected within the organization. It isimperative for the organization to respect the personal attributes ofits employees. Differences amongst individuals in an organization maybe color, race, sexual orientation, gender, political views, as wellas religious beliefs and practices. The Business Management team hasthe responsibility of respecting the differences portrayed by thedifferent employees in an organization.
Instead of using the difference as a deterrent to the achievementof organizational goals, the BM team considers the differences asstrengths, which are worth celebrating. In the management ofMultinational Enterprises, it is apparent that people from all walksof life are part of the organization. As a consequence, the BM teammust use the multinational platform as a tool for equality. Whereasthe BM team is tasked with the responsibility of formulating andimplementing techniques to control economy, it is critical to notethat there are various dimensions that need to be assessed beforetempting to control the economy. This paper seeks to assess thevarious organizational cultural dimensions that will affect the BMteam. In addition, paper also seeks to find out the variouschallenges that the employees face in attempting to achieveefficiency and effectiveness. Lastly, the paper will seek to know thevarious strategic models that can be used by the human resource togenerate objectives.
Cultural Dimensions to Understand the Business Management Scenario
In order for the Business Management team to plan, implement andmaintain certain strategies, there must be some cultural dimensionsthat affect them. The following are models that portray the culturaldimensions, as well as the principles upon which the organizationoperates in an extremely challenging environment.
This is a model that aids in the identification of the variouscultural dimensions. The model points out to the power distance indexor what is largely known as the PDI. This cultural dimension assessesthe power gap that exists between an employee and the management ofthe organization. It is imperative to note that in multiculturalcultural organizations, the gap between the employees and themanagement should be narrow in order to ensure that there is afriendly relationship.
The model also point out to the cultural dimension in regard toindividualism and collectivism. Whereas individualism will seeorganizations recognizing personal efforts and achievements,collectivism is more of bringing the employees together andintegrating them.
The Uncertainty Avoidance Index
The presence of uncertainty in any individual’s mind createstension, anxiety and even stress and depression in some individuals.Given a chance, a vast majority of workers in an organization wouldavoid uncertain activities in order to sustain a sober andcomfortable mood, which will enable them to deal with any unplannedoccurrence. The uncertainty avoidance index measures how members ofan organization will deal with the tension or anxiety throughreduction of uncertainty. It is evident that organizations withmembers from different cultures will have rules and regulations,which the members obey and follow strictly. It is apparent that themembers normally try to avoid any uncertain activity hence reducinganxiety and tension.
Masculinity and femininity are cultural dimensions that theorganization uses in the distribution of various emotional roles. Theroles played by various employees are critical in determining theculture of an organization. It is evident that an organization willdistribute various aspects of its cultural values differently to bothmen and women (Theriou & Chatzoglou, 2008). Orientation is alsoanother cultural dimension and it is divided into either shot termorientation, or the long term orientation. The short term orientationseeks to focus largely on the past and present values and it iscommon amongst a vast majority of the organizations. On the contrary,long term orientation o focused more on the future values andcapacity building rather than the current social obligations.
Indulgence versus restraint is another cultural dimension in anorganization. It is apparent that organizations that are indulgencein nature are the best. This is for the sole reason that they ensurethat all the employees in the organization enjoy their work, arerelaxed and celebrate their achievements. This is contrary to anorganization that is restraint in nature. This causes the employeesto loose creativity. (Baah, 2013). It is imperative to point out thatthe above mentioned models are critical in the formulation andimplementation of business strategies in given organizations.
Major Hurdles to the Employee’s efficiency and effectiveness
In any given organization or business enterprise, the BusinessManagement team has the responsibility of effectively managing theworkforce. However, the BM experiences various difficulties in theirmanagement practices in the given organization. In this particularorganization, language differences is a main difficulty or obstacletowards the achievement of the achievement of the organization’soptimum performance. In this part of the research paper, the mainobstacles that occur each day within he given organization will bediscussed. Whereas the hurdles discussed below vary, it is criticalto note that they all affect and hamper the successful performance ofthe workforce in the given organization.
It is evident that when employees from difference cultural andethnic or racial background are working together, there will bedifferences in language. As a consequence, the difference inlanguages and the absence of a universal language will definitelyaffect communication amongst the employees. For instance, amultinational company with branches in different countries will haveemployees who are accustomed to different languages. In suchinstances, it is clear that there can be cases where workers in oneregion might not be able to effectively communicate with otherworkers in another region due to language differences. Theconsequence of such communication breakdown is a negative effect onthe project performance. However, it is paramount to note that thepresence of a multilingual interpreter can solve this problem.
Since language difference is a permanent aspect in humankind, it isvital for the management of multinational organizations to offerlanguage training lessons to its employees. In addition, themanagement should also ensure that there is a multilingualinterpreter in any project team. This would ensure that the languagebarrier problem does not affect the performance of the project, aswell as affect the final expected project outcome (Inam, 2005).
Different Cultural and Religious Societies
As it is with the issue of language differences, it is evident thatemployees in an organization will be pulled from various cultural andreligious groups or societies. This might present a difficulty due tothe differences in the communication styles (Richard et al., 2004). Aclear and perfect example is the America’s people approach to work,which regarded as being casual and informal. This might present adifficulty in communication style when Americans are working withJapanese or Germans who end to hate noise and interference in theirwork. It is therefore clear that in the given multinationalorganization, such problems may arise and affect the effectiveperformance of the employees. In order to effectively deal with thisproblem, it is imperative for all employee of the given organizationto learn various cultures of people across the world, especially forthose whom he or she works with. In addition, the employees can beencouraged to learn the working styles of the various cultural andreligious people. (Ashton, Brown, & Lauder, 2010). If suchmeasures are taken, it is clear that employees of the givenorganization will improve on their interaction skills with otheremployees from different cultural and religious backgrounds.
The hierarchical order in a multinational enterprise can be a mainsource of conflict between the employees and the management. TheBusiness Management team has the responsibility of ensuring that eachand every employee from whichever cultural background adheres to theestablished hierarchical order in the multinational company. Whereasa group of employees might respect the hierarchical order in thegiven multinational organization, others might not believe thehierarchical order and might always question the management. The BMteam must understand that some of the employees come from cultureswhere authority and leadership are awarded following a particularcriteria. For instance, some cultures might have experienced peoplein positions of authority while others might have people with immenseaccomplishments holding positions of power (Richter, Dawson, &West, 2011).
It is also imperative for the BM team to realize that differentcultures might adopt the vertical structures while others will adoptthe horizontal structures of hierarchy. His is clearly demonstratedin the banking and information technology industries. Research hasindicated that the banking industry is synonymous with the verticalstructure of hierarchy while the information technology industry islargely known with the horizontal structure of hierarchy. This is aclear indication that the structure of a hierarchy might affect theemployees in the given multinational organization. This calls forcooperation between the managers, leader and the employees in orderto eliminate this problem. The management has the responsibility ofinforming all the employees of the form of hierarchy that exists inthe given multinational organization.
Unbalancing of Tasks and Work Responsibilities
In order to achieve the goals and objectives of the multinationalorganization, the BM team has a vital role to play in the balancingof tasks and work assignment. As it has been said above, suchmultinational organizations host employees from different culturalbackgrounds as a result, conflicts are bound to occur within theteam as a result of unbalancing of tasks work assignments.(Klarsfeld, 2009). For instance, in instances where different peopleare working in different shifts such day and night, some employeemight complain due to the job timing and the presumed additional workresponsibilities. Employees working in the night shift might feelthat they are not contributing equally in the social sphere as theircounterparts working in the day shift.
In order to solve such as problem, the managers have theresponsibility of ensuring that each employee is allocated tasksaccording to his or her roles and responsibilities. In other words,there should be no single employee who is overburdened or overworkedat the expense of another. It is also critical to point out that themanagers must ensure that they are clearly aware of the cause of theconflict before embarking on resolving it (Edwards, 2013). Sinceconflicts are imminent in the workplace, the management must create apositive environment and develop smooth relations with all employeesin order to easily and effectively solve arising conflicts andproblems.
Strategic models of human resource management in multinationalcompanies
It is evident that with the inception of the globalization trendthat there has been increased stiff competition amongst themultinational organizations. As a consequence, a vast majority ofthese organizations are required to come up with innovative ways ofensuring that they remain ahead in their field. It is also clear thatglobalization has seen numerous multinational organizations workingin different regions of the world with varying working environment,cultures, people and different work processes (Aycan, 2005). Thispart of the research focuses on the strategic models of HumanResource Management in the given multinational organization that aretasked with the responsibility of managing both the operational andfunctional objectives of the organization.
Business Management Approaches
For the purposes of understanding the role of the functions ofBusiness Management in the assigned multinational organization, it isimperative to take the following two approaches into account. It isimperative to consider the various changes that have been eminent inthe given multinational organization as a result ofinternationalization (Born & Peltokorpi, 2010). Secondly, it isvital to consider how knowledge is transferred to employees when thecompany changes from the local to the international level.
In order to analyze the perspectives that the multinational companybases its dynamics, the Perl Model or the EPG model will be applied.The focuses on three modalities namely ethnocentrism, polycentrism,and geo-centrism. Ethnocentrism is a perspective of building dynamicsthat is present in a vast majority of organizations. This perspectivecomprises of beliefs that a specific group is critically morerelevant than the rest. In organizations, this belief is based on theidea of the cultures and nationalities of its workforce. It issuggested that such companies feel superior and trustworthy beforetheir foreign counterparts. However, this perspective has theshortcoming of instances where such organizations or companiesencounter stiff competition from the local organizations or companies(Budhwar & Debrah, 2008).
Polycentrism is another perspective that highlights the approachthat the management of the given multinational organization take inthe foreign land. In this perspective, the multinational organizationhas the goals and objectives of the host nation in mind, but appliesits own strategies and techniques to achieve those goals. Themanagement has the assumption that the values of the organizationwill match with those of the host nation. The management believe thatthe match in culture and values will ensure that the company hascontributions in the price, marketing and distribution. However, themain shortcoming of this perspective is the stiff competition fromthe local companies who are familiar with the market of the hostnation more that the multinational company (Chen, Lawler, & Bae,2005).
Geo-centrism is an aspect of the EG model that applies a universalapproach in both the local nation and the foreign nations. In otherwords, the aspect does not discriminate upon any sector and it servesboth the local and the international market the same way. Forinstance, the multinationals serve similar products, through the samedistribution channel and in the same servicing manner. It can beargued that multinationals applying this aspect have a universalstandard of their operations for both the local nations and theforeign nations. This aspect also ensures that it has developed anetwork of all stakeholders such as suppliers, shareholders,consumers and buyers that is collaborative. However, it has proven tobe a challenge developing this model aspect in any globalorganization (Deadrick & Gibson, 2009).
The Multinational Environment
Adler – Ghadar Model focuses largely on the steps that anorganization goes through in order to arrive to the multinationalenvironment. An organization must conduct expansion practices inorder to achieve desired multinational level status. These practicesare aided by the following phases the domestic, the international,the multinational and the global practices. The domestic phase, asthe name suggests, focuses on the home market, as well as the fewexport operations. The international phase on the other hand, focuseson the learning perspectives and the local receptiveness. Themultinational phase focuses on the issue of price and the coststructure whereas the global phase focuses on the fulfillment ofdomestic and international needs, as well as global integration.
Whereas the above models may appear sufficient, it is imperative topoint out that the Taylor Model is critical in ensuring theirsuccess. This model provides a critical impetus into the organizationsince it focuses on the HR resources while ensuring they performtowards the growth of the organization (Ghemawat, 2005). The Humanresource management has the responsibility of allocating employees inpositions where they have the necessary skills across the globe. Itis clear that this will enhance innovation while reducing laborcosts. The Business Management must ensure that employees aredistributed across the globe based on their efficiency, effectivenessand creativity.
The allocation of employees to positions where they have skills andare efficient in is a critical measure towards enhancing performanceand achieving set goals. The various strategies for controlling theeconomy and ensuring the growth of an organization require thedevelopment of a corporate center of excellence. The management ofthe organization has the responsibility of ensuring that theyconstantly review the performance of the organization and thatstrategies an policies are put in place to ensure the growth of theorganization.