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Department of Management and Business Administration Aliah University, Kolkata Newtown, Action Area-Ii, West Bengal-700160

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30 views5 pages

Department of Management and Business Administration Aliah University, Kolkata Newtown, Action Area-Ii, West Bengal-700160

Uploaded by

anisfiza662
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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DEPARTMENT OF MANAGEMENT AND BUSINESS ADMINISTRATION

ALIAH UNIVERSITY, KOLKATA


NEWTOWN, ACTION AREA-II, WEST BENGAL-700160

Name:- ABU SUFYAN ANSARI

Roll Number: MBA205042

Subject:- Cross Cultural Human Resource Management


SEMESTER 6

ASSIGNMENT
INTRODUCTION

International business is the production and sale of goods and services between countries.
There are several ways a business can be international:

➢ It produces goods domestically and sells both domestically and internationally.

➢ It produces goods in a different country but sells domestically.

➢ It produces goods in a different country and sells both domestically and


internationally.

Businesses typically produce goods overseas due to lower labour costs or taxes, and they sell
products and services in the global market because of the high potential for gaining a larger
audience, new customers, and increased revenue.

Globalization has led to the liberalization of markets in various countries, as well as


improved communication systems and extensive networks of connections. As a result, the
growth of multinational corporations has been consistent, with many emerging in the
twentieth and twenty-first centuries. Multinational companies have a presence in diverse
regions worldwide, each with unique cultural beliefs and practices.

The management of such companies established in culturally diverse regions must be mindful
of these cultural variations, as a society's culture is distinctive and influences various
behaviours, including the consumption of goods and utilization of services.

The objective of this proposal is to critically evaluate the management of multinational


companies in diverse cultural settings. The primary research area will focus on the
complexity of multinational management, encompassing regional approaches, theoretical and
empirical theories. This research will aim to identify effective strategies for managing
multinational companies in different cultural settings, taking into account the impact of
cultural differences on business operations, communication, and decision-making processes.
SOLUTIONS

Managing multinational companies can be a challenging and demanding task. Many


multinational companies have struggled to expand successfully into new markets due to their
failure to consider cultural diversity. To achieve success in exploring and establishing
themselves in new regions, multinational companies must adapt their organization to
accommodate the cultural norms of the country of interest. Culture involves the sharing and
learning of how things are done in a specific society. It encompasses various aspects, such as
eating, dressing, greetings, treatment of others, and problem-solving methods. Neglecting the
significance of culture in any society can be detrimental to a company's international
reputation and success. In cosmopolitan areas, there are multidimensional cultures, and all
cultures are authentic as they fulfil the needs of the given society. No culture should be
considered superior to another as they all play a crucial role in any society.

The major necessary steps involved are as follows:-

Overcoming Language Barriers:

One of the necessary steps in managing multinational companies is to overcome language


barriers. Language is an essential aspect of a people's culture and it is important for effective
communication. Advertising to potential customers in their language can greatly increase the
likelihood of them considering a purchase. To understand a given language, it is also
important to study and understand the culture of the people who speak that language. Bias
and colonial/imperialist mentalities should be eradicated as all cultures are authentic.

Understanding the Culture:

Another crucial step in managing multinational companies is to understand the culture of the
society they are operating in. This includes understanding the do's and don'ts, values, and
planning strategies for establishing a reliable market force. Multinational companies should
employ people from different cultures, especially the local population of the area of
establishment, to help understand the host market. Failure to manage cultural diversity can
result in problems of clashing misunderstandings. In the modern world, globalization has
eliminated boundaries, and cultures are flowing from all areas. Forcing people of diverse
cultures to conform to a certain culture is wrong.
Employees’ uniqueness must be identified and strengthened, their different talents and ideas
developed and improved in a way that result in growth on both the individual level and on the
company level in the process creating a platform for the employees to release their full
potential.

Modernization

The modern business world is very competitive, dynamic, and radical. Multinational
companies can remain relevant and competitive by capturing the energy and ideas of
culturally diverse people. No culture is static or rigid; all are dynamic and in a state of flux.
Multinational corporations should not only understand the local cultures but also be in a
position to communicate in the various international languages used by their employees and
clients. Understanding the working schedule and calendar year of a given society is also
essential. Failure to understand such basic things could have far-reaching negative effects on
a company.

Culture has been compared to an iceberg, with one visible part and another part in the water.
Many business corporations only concentrate on the tip of the iceberg, forgetting the bigger
part. This means that businesses often only focus on the simple and obvious concepts of a
given society, failing to understand the real functioning of that society and its logical backing
for certain processes. In so doing, businesses miss out on understanding key essential agendas
and are unable to reap maximum benefits from international investments. Lack of proper
cultural understanding might lead to the closure of operations of multinational companies in a
given area, just like a ship that hits an iceberg and sinks.
CONCLUSION

In today's business world, cultural diversity is a crucial factor that companies must consider.
These groups can be discriminated based on various criteria, such as race, geography,
civilization, gender, age, educational or functional background, physical and cognitive
abilities, language, beliefs, cultural background, economic status, job title, and sexual
orientation. As multinational corporations operate in a global market, they must be able to
detect and adapt to all possible changes in the global environment, including cultural
differences. For instance, in India, women may not work at night, so the company must
manage its operations accordingly. If a company does not understand the impact of culture on
all of its processes, it cannot offer quality products or services to its customers.

While workers may think that their behaviour has no influence on the final product or service,
every part of the company must have a clear vision and mission to be effective. The social,
political, and enterprise structure of a company depends on everyone involved, especially the
internal area and human resources, which are crucial areas for achieving the company's goals.
Failure to understand and appreciate different cultures, languages, and historical backgrounds
can lead to disasters when setting up multinational businesses. Therefore, having general
cultural knowledge is essential, but if coupled with prejudice and prejudgment, it can be an
obstacle to effective global management.

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