Table of Contents
2.0 The effect of culture on international operations.
3.0 Impact on HR policies, practices, and management of the workforce.
3.2 Impact of cultural diversity leadership skills.
4.0 Opportunities and challenges in setting up a global virtual team of managers.
As an international human resource manager, my responsibility is to write a report to the CEO of a Multinational company about the operations of the multinational company and their effect on the HR policies, practices, and management of the workforce. This report discusses firstly the concept of organizational culture. Then this report discusses the diversity of the organizational culture based on Hofstede’s cultural dimension and GLOBE research project. Then the paper discusses the implications for the cultural diversity of HRM, leadership styles, way of building a global team, and the effect of culture on the ethical and responsible international citizens. This paper also investigates the opportunities and challenges of setting up a global virtual team of managers of a multinational company.
2.0 The effect of culture on international operations
As Martin (2001) suggested that, organizational culture can be defined as the behavior and norms of the workers of an organization which makes the environment unique and uncommon. According to Rick (2015), organizational culture can be defined as the collective assumption and norms of the workers of an organization or company.
International organizational cultural diversity can also be described through GLOBE cultural dimensions. As Cornelius and Grove (2001) stated that, the term GLOBE means Global Leadership and Organizational Behavior Effectiveness Research. House, et al. (2004) suggested that the researcher of the GLOBE project divided the nation’s organizational behaviors based on similarities in the national cultures and created a cultural cluster. According to the GLOBE project, this multinational company operates in the Nordic, Anglo, Germanic Europe, Eastern Europe, and Latin Europe under Europe alone. Under Africa it operates in Sub Sahara Africa and under South America it operates in the Latin America section of the GLOBE project.
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Diagram: GLOBE research project, Source: Weebly (2017)
Organizational cultures differ from country to country. In describing the diversity of organizational culture Hofstede (1984) suggested six dimensions in his model Hofstede’s cultural dimension. The six dimensions are Power distance index, individualism vs. collectivism, Uncertainty avoidance index, Masculinity vs. femininity, Long-term orientation vs. short-term orientation, Indulgence vs. restraint. In international marketing, Hofstede’s cultural dimension has a significant role.
Diagram: Hofstede’s cultural dimension, Source: B2U (2017)
Based on Hofstede’s cultural dimension, according to Hofstede (1984), the countries that show higher power index like Africa and some countries of Latin America tend to follow the hierarchical order of power. They work under their superior. They do not need further grounds for command. Here, in the case of international marketing leading the workforce is easier. However, Schwartz (1994) argues that the countries that show lower power index like European countries are tended to follow the equal power distribution method. For this, they need justification in their power distribution. For this, in the case of international marketing, a company can face challenges in managing the workforce in an organized way (Hofstede insights, 2018)……………..