Tuesday, August 19, 2014

Assignment: MNC and Cross Cultural Connections (with references)

MNCs role in many cultural environment where, cross-cultural connections are their day-to-day reality that impact performance of their international workers. Therefore, MNCs are required to learn how to handle such connections to set up successful teamwork among their workers. MNCs need to understand restrictions to and companies of effective cross- border cultural connections.

Cross-border cultural relations is the research in the field of HRM. Which specializes in international companies, it rather represents that MNCs are beyond boundaries and cultures and therefore it describes what techniques are used to handle and allow them to function in many places on the globe and in various cultures. However, the latest perspective in HRM, is involved, with the actions of staffs and cultures in MNCs. It maintains the belief that cross-cultural communications can and should be handled to help international companies to earn profit from all countries. (Rozkwitalska, 2013)

Culture provides styles of knowledge and actions of teams that are seen in social procedures and supports for such a wide links and understanding. However, activities are also conditional, so it’s known as natural partialities as well as situational requirements and the biological perspective for example Chinese business systems. Also staff’s actions are psychologically designed by individual character. ( Cui & Hu , 2009)

Cross-border communications includes social barriers because of workers' mental development by their cultural lifestyle. The following obstacles can be recognized to help the company understand the problems of cross border cultures:

  • ·         Short cultural range,
  • ·         Cultural shock,
  • ·         Cultural over simplifications and
  • ·         Auto-stereotypes,
  • ·         Pre-judgments and
  • ·         National ethnocentrism.
  • ·         Make sure that staffs are well trained ,
  • ·         Properly understand cultural language skills,
  • ·         Understand cultural knowledge from local experts;



Although some latest research results have highlighted a more healthy strategy to cultural range by exposing its positive impact on companies and recognizing hurdles if MNCs’ employees don't succeed to handle the cultural difficulties properly. (Rozkwitalska, 2013)

Usually, individuals' communications in MNCs can be also suffering from cultural ego which cannot function in cross border culture. Self-perception of a particular social team, i.e. a Cultural auto-stereotype, effects on the behavior toward other cultures where the company is functioning. Stereotypes and auto-stereotypes present a risk of too far-reaching and unjust decisions which may lead to prejudices. Which badly impacts the quality of cultural communications. MNCs solve this problem by figuring out the degree of control over foreign subsidiaries, independence, and assigned power, they use socializing, acculturation, and modern groups, handle retirees, and transform HRM methods. (Xin Zhou , 2007 )

In case of a cross border cultural assignments, definitely handling client-vendor connection on both factors is important. Other ways to balance the connection would be to use of typical procedures and suitable technological innovation. Use of techniques, procedures, and technological innovation can solve significant problems. Which helps to succeed in standards and principles of company based on cultural background and performing styles of culture. One other way of coordinating cross-culture connection is by modifying to discuss working culture wherein staffs of various cultures accept to change their actions to take account of the other cultural values.  (Gore, 2013) This will not only make the company efficient in its cultural balance but also, improve cross-border understanding. (Fitzsimmons, 2013)

When managing international companies, choosing the right mixture of people, process, and technological innovation can be the difference between success and failing. To increase the security of company’s profitability in cross border culture companies need to, And accept flexible workflows that regard cultural laws; and coordinate technological innovation to customer needs and wants. (Friedman & Struven, 2010)

The growing pattern to globalization of companies is giving increase to a need for the development of effective worldwide management groups handling cross cultural difference. While incorporating effective practices with regards to team development, & knowing the advantages of varying cultural designs and actions. (Eero & Janne , 2011)The truly successful worldwide workforce are likely to be those which include the change through incorporated changes to selection, development, compensate and identification guidelines and methods by understanding the cross border cultures. (Ghislanzoni, et al., 2008)



References 

Cui, W. & Hu , Y., 2009. Culture Differences in Cross-border M&A , Aalborg : AALBORG UNIVERSITY .
Eero, B. & Janne , T., 2011. On the Narrative Construction of Multinational Corporations: An Antenarrative Analysis of Legitimation and Resistance in a Cross-Border Merger.. Organization Science., 22(2), pp. 370-390.
Fitzsimmons, S., 2013. MULTICULTURAL EMPLOYEES: A FRAMEWORK FOR UNDERSTANDING HOW THEY CONTRIBUTE TO ORGANIZATIONS.. Academy of Management Review. , 38(4), pp. 525-549 .
Friedman, D. & Struven, P., 2010. Cross Border PMI Understanding and Overcoming the Challanges, Berlin: Boston Consultancy Group.
Ghislanzoni, G., Risto, P. & Turnbull, D., 2008. The multilocal challenge: Managing cross-border.. McKinsey Quarterly, 12(2), pp. 70-81.
Gore, V., 2013. The Importance of Cross-Cultural Communication.. IUP Journal of Soft Skills. , 7(1), pp. 59-65.
Rozkwitalska, M., 2013. Effective cross-cultural relationships in multinational corporations. Foreign subsidiaries’ viewpoint, Poland: Academia.edu.
Rozkwitalska, M., 2013. Human Resource Management Strategies for Overcoming the Barriers in Cross-border Acquisitions of Multinational Companies: the Case of MultinationalSubsidiaries in Poland, Poland: Accademia.edu.
Xin Zhou , J., 2007 . THE EFFECTS OF CULTURAL DISTANCE AMONG NPD TEAM MEMBERS ON TEAM LEARNING.. AMA Winter Educators' Conference Proceedings., 18(2), pp. 247-248.



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