Lecture 5 Flashcards
In a global economy, in order to conduct an effective short-term and long-term human resource management strategy, multinational and global corporations need to create a
rational management system that can motivate employees to be productive and feel associated with the organization they work for.
Multinational teams can be productive when individuals in a team are
wisely managed and can be motivated. Thus, business organizations should be able to create different teams based on the function and the level of internationalization.
Multicultural study is a useful tool that helps in managing diverse workforces in different levels of organizations. (4)
Domestic firms (employees working for local domestic customers)
International firms (employees working in domestic business operations for foreign markets)
Multinational firms (foreign and domestic employees working in various markets)
Global firms (managing global workforce)
Cultural orientations in four phases of organizations
Phase 1: The impact of multicultural-study on domestic organizations
Phase 2: The impact of multicultural study on multi-domestic markets
Phase 3: The impact of multi-cultural study on multinational organizations
Phase 4: The impact of multi-cultural studies on a global business organization
Phase 1 The impact of multicultural-study on domestic organizations:
In managing business operation of domestic organizations, there is a need for limited multiculturalism. Some nations that are being highly diversified might need more multicultural awareness than others where diversity is less visible. The US domestic market can be a good example of the former where as Poland with its homogeneous populations can be associated with the later case. In a less diversified society, it is natural to observe an HR strategy that can lean towards ethnocentric approach.
Today in countries like the US. multiculturalism has to be introduced for two main reasons:
a) The US workforce and consumers are multicultural.
b) For future expansion, countries such as USA, with their out-word looking for larger markets, need to prepare their future expatriates how to operate in a multicultural environment, ahead of time.
phase 1
Phase 2: The impact of multicultural study on multi-domestic markets
Managing business operation in multi-domestic market (cultural adaptation is required. But managers from headquarter are preferred to managers from the host countries). The main orientation of management in such organizations is region & ethno centric, although the region & ethno centricity is not as strong as it is in the domestic market as discussed in phase 1.
Phase 3: The impact of multi-cultural study on multinational organizations
Managing business operation in multinational organizations (less cultural intensity but multiculturalism is sought extensively).
General Motors, the US auto maker industry (multinational organization) operates slightly in varying degrees in different socioeconomic background countries.
The main cultural orientation of management in such organizations is
polycentric.
The inclusion of host countries’ nationals in management team is crucial for business success.
phase 3
Phase 4: The impact of multi-cultural studies on a global business organization
Managing business operation of global firms requires intensive knowledge of culture.
McDonald and KFC are good examples of such organizations, but one has to understand even such firms had to conduct few changes in order to survive). McDonald in India, France and Brazil had shown some changes that were dictated by the local specific cultural needs of food consumption.
The main orientation of management in such organizations is
geocentric.
phase 4
Types of Diversity in Teams
homogeneous groups
token groups
bicultural groups
multicultural teams
In order to create synergistic management system, in an organization, one has to accept
the negative and positive impact of diversity on organization.
One of the most important argument often discussed about diversity is
how to measure the impact of diversity
At a conceptual level, diverse team in the short term, tends to be associated with
low productivity and high cost