The paper "How Can MNCs Become Better Managers of Cultural Diversity" is a perfect example of a management research paper. The maturity of economic globalisation has meant that more multinational corporations (MNCs) emerge into prominence. At the same time, cross-culture operation has also emerged as an enormous impediment to growth (Crowley-Henry 2005). Hence, with the globalisation of the world trade, varied businesses have recognised the fact that it is crucial to harness the skills and expertise of a diverse workforce in order to compete effectively in the global economy. Indeed, within the context of a knowledge-based economy, human resource has transformed into the most critical strategies resource for businesses on an international scope.
Employees from different cultures have different priorities and values once they make and execute decisions. Such differences have a great influence on how the managers need to handle human resource management in virtually all spheres of work (Chen 2005). Still, employees are expected to become greatly efficient in improvement of own capabilities and in taking part in the management system of a company. Still, research data shows that most MNCs fail when it comes to cross-cultural communication among the personnel from a range of cultures (Crowley-Henry 2005; Pongpayaklert & Atikomtrirat 2011).
Based on this backdrop, this paper explores how multinationals companies (MNCs) manage cultural diversity within the context of Tesco and Sainsbury, two leading UK retail chains and their expansion to Asia. Theoretical Review Several definitions have been assigned to the word culture. According to Hofstede (1983), culture refers to collective programming of the mind that tells between individuals of an organisation from another and comprises the system of values and views.
From the definition, it is easy to conclude that a culture may be learned since it is not intrinsic or natural and that individuals within a specific culture behave predictably and uniformly. As a result, in a single cultural group that certain habits may exist, the views and behaviours are distinctive to all members (Pongpayaklert & Atikomtrirat 2011). As stated by Crowley-Henry (2005), individuals learn from the culture while establishing themselves into becoming members of the group. Still, they will only get disposed to experience the insightful impact of the values of communities and beliefs once they get to communicate with individuals from other cultures.
Due to this, culture is specific in one group although it is still learned. In the increasingly globalised economy, Chen (2013) suggests that culture can be determined based on the context, such as the particular social, economic and political environment. Hence, international cross-cultural management has to be approached from three different perspectives. These include Cross-national comparison (CNC), Intercultural interaction perspective (IIP), and Multiple cultures perspective (MCP). In CNC, the key idea of the concept is that a nation is in itself a culture.
The theory was initially used to refer to the political aims after the Second World War in 1945, at the time when the United States became the ultimate world superpower and increasingly spread its ideologies into other parts of the world (Chen 2013). For instance, within the context of British retail chain Sainsbury, the manager’ s key task in Singapore would be to describe and identify the divergent cultures that are stable variables. Essentially, therefore, regional and national clusters that affect the culture, and which can be categorised and researched, exist.
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