Tips Differences in concepts of time can pose challenges for multinational companies; one example is in how meetings are run.
For example, Western communication style is straightforward and direct, but people in India and China are more accustomed to a less aggressive approach.
For instance, Spanish varies from one Latin American nation to another, including dialect, slang and pronunciation. Understanding these dimensions helps determine compensation structures; for example, if collectivism and cooperation are strong cultural attributes, companies will reward employees as a team based on team performance.
Time Relationships Different cultures perceive time differently, which affects issues such as punctuality and schedules. A freelancer for more than 20 years, Johnson has had the opportunity to cover topics ranging from construction to music to celebrity interviews.
Communication Styles Multinational companies also are challenged by different communication styles that affect developing strong relationships with partners or clients. Business owners should instruct overseas managers to operate with the group dynamic in mind and consider relying on teams to accomplish work.
Geert Hofstede, a researcher Cultural issues in mncs published author on workplace culture, has identified six dimensions of national culture that affect employee values.
In polychronic cultures, such as the Middle East or Latin America, maintaining relationships and socializing is more important than the schedule. Americans also understand why a beer brand would sponsor a sporting event but not a ballet.
Workplace Values One problem encountered by multinational companies is differences in workplace values.
Meeting and Exceeding Expectations; Warren R. Because of the need to build these connections, business deals might take five times longer to complete in China than in the United States, reports Business Insider. By enhancing cross-cultural training and adapting to local needs, multinational companies can succeed in bridging cultures.
In these cultures, patience is required to build the relationship outside of the board room. A third dimension is competitiveness vs. Collectivist cultures put the group before self; in return, the group cares for each member. Americans think that getting right down to a business negotiation is the natural course of things.
The first of these is power distance, which deals with how society views inequalities among people. Video of the Day Brought to you by Techwalla Brought to you by Techwalla Concept of Time A third challenge is that cultures tend to view time differently.
Traditions All cultures have customs, taboos and superstitions. Some societies accept without question the concept of a hierarchy, while others demand justification for unequal power, Hofstede says.
Whereas Americans perceive tardiness to be a sign of disrespect, people in some Latin American cultures arrive late to show respect. An American executive trying to stick to a strictly timed agenda might be seen as brusque in Peru.
Properly interacting with local employees and consumers not only means customizing products to a foreign market; it also means understanding the collective societal forces that shape the individuals residing there.
Cultural differences can be challenging, leading to misunderstandings between employees and management as well as between the company and its customers and partners.
Communication Between Cultures; Larry A. Language also has contextual nuances and nonverbal dimensions that change meaning.
Also, not all foreign words and phrases are translatable. Language Barriers Language can be a significant obstacle for a small business that becomes a multinational company. A multinational operating in a collectivist culture such as China, Japan and Mexico will have difficulty motivating employees through individual incentives and competition.
Intercultural Communication; Larry A. The New York Times:“CULTURAL ISSUES IN THE MULTINATIONAL COMPANIES” By Lubomir Genov № Presented to chief assistant professor Kiril Dimitrov, Ph.D Cross cultural issues in the European human resource management University of National and World Economy – Sofia, Bulgaria Nottingham Trent University – UK Great Britain & North Ireland.
How are multinational companies dealing with tough social issues? How are multinational companies dealing with tough social issues? those drawn from social and behavioral sciences. Topics include strategic management, organizational behavior, cross-cultural management, leadership, ethics, social responsibility and sustainability, and.
MNCs can successfully do business in India, with special reference to cross-cultural issues and management of HR. Design/methodology/approach – In-depth interviews were conducted with executives working in. Analysing the Cultural Diversity in MNCs. Print Reference this. Disclaimer: However, these differences in behavior, work values, attitudes and culture also makes challenges for MNC companies.
Issues can soon transform into factual troubles working in a multi diverse cultures, clash occurs in a work situation because of culture diversity. What Are the Cultural Problems Encountered by Multinational Companies?
by Randi Hicks Rowe - Updated September 26, Doing business across national boundaries requires more than just exporting a concept that is successful in the United States.
Cultural Differences Biggest Challenge For MNCS. Print Reference this. Disclaimer: This work has been submitted by a student. This is not an example of the work written by our professional academic writers. You can view samples of our professional work here.Download