Organization Culture In Multinational Companies Management Essay

Organization enculturation In Multinational Companies worry EssayMultinational companies ar veneering more challenges when they punish to develop a cohesive organisational grow than domestic companies. In this study, some(prenominal) cases experienced from real animation characters get hold of be presented. They go forth be discussed with theoretical framework which al economic crisiss reader to infer each situation through comparative analysis. The theory of Cultural Management, print Cultural Communication Negotiation, Leadership, Motivating plenty is selected for cross referencing in unity to the topic of the study.The study focus on two main move bump 1 Describe the challenges faced by MNCs on growing a global management, moving forward to identify the key challengesPart 2 Focus on managing slew crossways borders and lasts implementing Cultural Management concepts and theories (Hofstedes Cultural Dimensions 1980), attractionship Motivating theories. The in tention of this part is to give a critically discussion on real military control situations while beingness awargon of the application of these selected theories.The findings of useful methods for global drawing cards developing organizational culture go away be explained in the conclusion. I will give my personal reflections on how the application of these theories will benefit leadinghip work in the similar situations in the international business.Part 1 Challenges on developing a global managementOrganizations atomic number 18 always veneering challenges when they are doing business globally. These challenges include the assessment of the surround, managing social responsibility and ethics, chat negotiation across cultures, etc. In the following paragraphs, I will give journal articles related to a real life example that has faced several critical challenges when developing a global management.On 5th March 2012, china Labour bulletin reported a string of press release that there are a hail of 27 logged reports of strike and protest from workers across China with the majority ships company of workers from the industrial/manufacturing and transport sector. The strikes and protests are mainly concerned on low wages, reduction of annual bonus, unreasonable employee layoff, management take e trulyplaces and relocations.A related such case is workers at Putzmeister Machinery in Shanghai stages a strike over the unsatisfactory compensation package being offered after the company putsch by SANY Group. Putzmeister Machinery being one of the largerst German Manufacturer of concrete pumps has been acquired by Sany Group (one of the largest manufacturer of heavy machinery in China). Workers who are benefitting from the existing European management system and packages cannot accept the sudden implementation changes adapted from the Chinese company. It is believed that SANY has amended the package not in favour to the workers.After acquisition took plac e, employees who are not from SANY Group are affected by several changed factors both internal and external of the SANYs company policy. The culture which forms the organizational environment requires managers improve their cross-border scholarship capabilities. Managers from parent-country nationals or host-country nationals cannot ignore local employees needs. Successful leader manager advocate to earn peoples loyalty and trust by learning their different cultures, they also try to help employees to control what their future and opportunities whitethorn have in place.Besides, exercising effective Change Management is incumbent for leaders to understand the culture changes. This is because culture does not simply nasty consciousness who talks with whom, about what, and how the communication proceeds, it means how people encode messages, the meanings they have for messages, and the conditions and circumstances under which various messages whitethorn or may not be sent, notic ed or interpreted. (Samovar and Porter, 1997) In this regards, the needs to understand the cultural variables are also necessary for Managers of SANY Group to enquire the acquirement to avoid miscommunication.According to the study from Cameron and Green (2004), the role of a leader in acquisitions is providing situations to the individuals in organization as follows11. Ensure that the team knows that a change will happen and things will not be the resembling way they used to.2. Ensure that the people understand the things that will change, what will stay the analogous and when will all this happen.3. Encourage people try to do things in a rude(a) way and provide the obligation environment.Part 2 Managing and motivating people across culturesPeople from the same culture usually share a common general understanding of right and wrong, acceptable doings and inappropriate behavior. In multinational companies, staffs are from a variety of national cultures, they have variety cultu ral backgrounds, this requires managers who are operating in global interdependent market operating in a series of hugely diverse landscapes (Tom Keen, Jim Leadership Landscapes, palgrave, 2007). Serious misunderstandings may happen when managers cannot understand staffs real needs, values and self-actualization. Managing and motivating people across culture are not alone a challenge to large companies but also something applicable to small-scale companies while multinational people are collected together.A reference of a real life example of China riches Middle eastbound Machinery which is doing heavy machinery leasing business located in Dubai.China Wealth Machinery Co Ltd is a hyponym of SANY Group which was founded in 1999. The main core of business is leasing heavy equipment to polished and building contractors. Based in Hong Kong, China Wealth set up a subsidiary branch in Dubai on 2008, which is China Wealth Middle East Machinery (L.L.C) .In China Wealth Middle East Mac hinery, there are workers from four different countries, China, Bangladesh, Pakistan and Afghanistan. These workers are employed in various operating position want operators, maintenance engineers, foreman and P.R.O. The company has faced challenge in managing, motivating people from different culture. In a general perspective, there is a similar culture with very few differences among the employees from Bangladesh, Pakistan and Afghanistan. However, the difference can be substantial when they are compared with the Chinese culture. Hofstedes study gives comparison between Chinese and Bangladeshi cultures, the results are illustrated as follows,KeyPDI Power DistanceIDV Individualism vs. CollectivismMAS Masculinity vs. womanhoodUAI Uncertainty AvoidanceLTO enormous term orientationLOTLTO Long term/Short term orientationFigure Comparing China and BangladeshThe chart in Figure 1 shows the comparison of PDI, IDV, MAS, UAI between Chinese and Bangladeshi culture. There is significant si milarity between the two cultures in PDI, IDV and MAS where PDI and IDV are exactly the same. In contrast, the great differences between the two cultures catch at UAI and LTO.There is distinctive evidence in the relationship among Chinese and Bangladeshi. They have both displayed senior high power distance in their workplace. Chinese have given more adore for the elderly it is believed their behavior assembled from the Chinese Confucianism when taught in the younger days during their upbringing. Whereas, even the junior will to squeeze with outstanding achievement, they are not able to gain the same respect as the elders. In China Wealth company, all the Bangladeshi operators are younger than the Chinese operators, therefore, they will only take the role as helpers at the beginning even the Bangladeshi has accumulated enough or already have experience. In addition, the Chinese will always look out on a wanter term orientation and a better payment package which is almost doubl e when they are both put on the same position. It can be seen as unfair but is widely accepted in the company.Furthermore, Bangladeshi workers show their high uncertainty shunning which can be explained that they do not mind the status and adoption of lower responsibility in exchange for a secured salary. They are comfortably contented people who do not desire a long term orientation. They can generally accept Salary which is sufficient to stay the basis expenses and support the family back home. On the contrary, Chinese workers need high salary and seek for long term orientation which allow them to go freely and opportunity for promotion in future. They are risk taker and are ready for any unforeseen event that may or may not occur, they can also take challenges at work.Thus, managers who work as multicultural role on motivation and management blend in different ways. They must consider the entire national and cultural linguistic context on a situation-by-situation basis, set tle reward system not only rely on money but also search for their reside and satisfaction, means of keeping occupied, status and prestige. It is difficult to judge which type of workers behavior in China Wealth company is right or wrong. Managers should describe different job motivation between Bangladeshi workers and Chinese workers gibe to their different cultures.Part 3 ConclusionsIn globalization competitive environment, leaders can be expatriates. They need to have multiple competencies to deal with challenges like cross border transaction. I think it is important for them to create new culture initiatives by allowing employees to extent their thinking and actions. Creativity can be one of the useful methods when dealing with multiple challenges. Creativity means doing things from a different way, leaders must learn different culture from people outside the system.Leaders should consider the cultural differences when creating a new culture for the merger or acquisition.( Ku ada, 2008), they can enable reward systems, planning and surgical procedure management, motivating systems working together to support the objective and preferred behaviour.The leaders job comprises cultural adaptability, leadership experience and technical knowledge, level of empowerment and autonomy etc. No single leadership style plant well in all situations.( Helen Deresky, 2012) Global leaders should broaden their horizons strategically and cross-culturally. Besides, leaders should also try to develop a flexible sham what can adapt to local situations then apply around the world.