Impact of Culture on Multinational Establishments Assignment Help
How do various country cultures impact the business and human resource practice of the MNE?
Moving in the predominant global competitive market, organizations are continuously exploring new markets and new locations, expanding their branches. Human resource is the top most point in the planning agenda, taken into consideration by the organization’s leadership. The new setup in a new location (country) will be confronting a new inexperienced culture. The parent organization besides transferring the technology, products and knowhow, the conventional work style and staff management will be moving along.
The employees that will be inducted in new setup have their own mind setup based on their culture. Strategic planning needs to be done by the HR management, for recruitment, training and making an atmosphere for the management to be acquaintance with the new culture as well as the employees with the new setup. Businesses are always dominated by the culture. Every individual employee have its own culture, having different life style, different expectations and religious values. Government trade policies, labor laws, mode of wages, all have deep impacts on businesses.
Qantas leadership had been operating in the EU region, whereas there is a vast difference of culture in China. Language difference is among the top challenge, HR management will be facing. Airlines have direct interaction with common public, the local staff hired will be the bridge between the local Chinese customers and Australian management, through this bridge customer’s requirement and company’s message/services will flow in & out. Qantas will be facing culture diversity internally and externally, in its Chinese operation. HRM practices are influenced by a number of national, industrial, organizational and individual factors (Boxall and Purcell, 2003). HR management is quite different in western countries as compared to China, the emerging MNEs in China has compelled a change in HR management, in the region. As a result of rapid growth in the Chinese economy, government’s inadequate interest towards there is a deficiency of qualified work force. Hiring the right individual, training and getting the desired results, will be depending on the strategy of HR management. Secondly, modifications had been made in the conventional government policies and trade laws, after the rapid industrial growth, but still smell of state domination is there. Work style influenced by one’s own culture, affecting the productivity will be different of the management and local staff. The HR management has to be flexible to adapt the new culture, as they will be dealing with staff and customers of the same culture.
Culture involves different factors, like political, religion, moral values, traditions, languages, life style and law. Culture is a shared meaning system, found among those who speak a particular language dialect, during a specific historic period, and in a definable geographic region (Triandis, 1994). It is quite obvious that any MNE will transform into new culture to some extent. It has to respect their traditions and religious values. The impression of an MNE on employees is different in various cultures. The work force being the main strength of any organization may impose their cultural values into MNE they are working for, which may deviate from the company policies. When people come into contact with members of other cultures they are often not aware of their miscommunications, because they think that the others are more or less like they are (Triandis, 1994). In today’s global economy, the extent to which HRM activities are successful across cultures will largely depend on the manager’s abilities to understand and balance other cultures’ values and practice as regards such things as the importance of work, how power and status are conferred, the perceived value and other fundamental differences in how people from different cultures view the world (Boxall and Purcell, 2003). .
Every society differs in political, economic and social terms and these forces also change over time. This has an inevitable impact on the approach to managing people across geographic location and time. (Martin, 2009) In some areas the work force consider an MNE as taken for granted, whereas some work force are so hospitable and cooperative, trying to create bright impression of their culture. The Government policies and other rules & regulations that were made as per their culture will be bounding for an MNE.
MNE Managers:
Globalization has laid many responsibilities on managers. They are responsible to manipulating their parent company polices, achieving its goals in the new territory. They have to drive new setup keeping up the pace with the parent company.
Noting that managers are multicultural is necessary not only when they work with people from other countries but also with people from the same country, who speak the same language, have the same national heritage and yet, have different way of looking at the world (adekola, serge, 2007).
