The paper "Cross-Cultural Management and Globalization - Home Furniture Limited " is a great example of a business case study. Typically, people come from diverse backgrounds. People’ s cultural backgrounds in one way or another dictate the way they do things. To have a clear understanding of MNCs challenges and their impact on global human resource policies, it is prudent first to understand what culture entails. Geertz (2000) defines culture as the way the life of a specific group of people. Different people have different beliefs, values, behaviors and symbols that they are identified with.
These aspects differ from one group to another. It is important for an organization to integrate individual cultures to come up with a common culture that is neutral and accepted by all stakeholders. Similarly, cross-cultural management is the integration of different cultural backgrounds into a single culture. Technological advancements to a larger extent have revolutionized culture. Cultural values have been able to be transmitted from one generation to the next through an evolutionary process termed as collective programming. Development of a person’ s personality is affected by the behaviors patterns in the society, group or in the organization.
The environment in which a person develops shapes up a person’ s behavior. People are typically social beings and need to be identified as a group or social affiliation. According to Schein (2010), Organizational culture refers to a system of shared values, assumptions, beliefs and values that dictate how people act within an organization. The common values strongly influence people within the organization dictating how they do their job, dress or behave. Organizational culture plays a substantial role in determining the success of the organization.
In an organizational context, culture flows from the top management team to the staffs since they initiate and implement a culture. Nederveen (2009) in his research examines the extent to which culture determines the behavior of a person or an organization. He ascertains that cultural components affect the way a strategy is formulated, the establishment of its goals and the overall way of operations in the organization. The world has become a global village due to the advancements in technology that has brought people more closely to one another.
Globalization is no doubt the most relevant trend that has significantly impacted organizational cultures. Business organizations have to refine their operating models continuously to suit the development needs of globalization. Human resource is a highly valued asset in an organization (Nederveen 2009). However, multinational corporations are usually faced with the challenge of managing the multicultural and more diverse workforce. MNCs have the opportunity of tapping the workforce from the global pool of employees. Just like any MNC, Home furniture limited in going experienced global advantages and disadvantages. They were able to access a large pool of labor of cheap labor.
This is because they can establish production units in countries with cheap labor such as China, Pakistan, and India. They are also accessible to a large pool of customers. Their customer base increased since they have customers from different countries. Moreover, they are to embrace the latest technology from foreign countries that increase the efficiency of their operations. Sub consequently they also face challenges in going multinational. The main challenge is managing the diverse cultures from different countries. There is also legislation that affects their operations such as heavy taxation and political interferences.
Despite the challenges with effective management, MNCs can overcome the challenges and thrive. It is based on this background that this essay seeks to do a case analysis examining cross-cultural management and globalization. The focus of the discussion will be based on the Home Furniture limited company which is a multinational corporation. It will look into the challenges that Home Furniture Limited has experienced while working across countries. Moreover, it will examine the influence of national cultures such as leadership, decision making, and human resource management on Home Furniture limited.
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