Wednesday, April 15, 2009

Cross- cultural challenges in IB

Cross National Difference
In recent years, with the increase in globalization and diversity in the workplace, cross cultural management has become an important element of organizational. Culture can be analyzed from a country, language, religion, value, ethical and/or many other areas of study as a frame of reference.The main cross national differences are-

· Social & cultural Environment
Social structure of the society
Values and belief of people
· Political environment
· Legal system
· Education system and standard
· Quality of quantity knowledge work force
· Level of available technology

Global HR issues

Global human resource strategy is the framework built around managing a global workforce; including recruiting, hiring, setting compensation levels and benefits, and retaining workers in a global organization. Global companies must make decisions about hiring locally, recruiting expatriates, or utilizing emerging new worker groups to fill the needs of a particular region.
Additionally, global HR strategy must consider the complexities of regional government interaction with the business, as well as social programs that may compensate for benefits offered by the employer in other regions. Other global HR issues that impact the development of a cohesive strategy include cost of living, local pay scales, retention issues, pension issues, organized labor, and regional leave policies.

A)-Standardization and adaptation of HR practices

1 .Host country culture and work place environment

2. Firm’s size, maturity and level of international experience

3. Mode of operation

B).Retaining, developing and retaining local Staff

C). HR implication of Language Standardization

D). Monitoring HR practices of host Country

Managing Multiculturalism Cultural diversity
Cultural diversity is the variety of human societies or cultures in a specific region, or in the world as a whole. Human have spread throughout the world, successfully adapting to widely differing conditions and to periodic cataclysmic changes in local and global climate. The many separate societies that emerged around the globe differed markedly from each other.
Cultural differences that exist between people, such as language, dress and traditions, there are also significant variations in the way societies organize themselves, in their shared conception of morality, and in the ways they interact with their environment.
Most people would agree that cultural diversity in the workplace utilizes country’s skills to its fullest, and contributes to overall growth and prosperity.
Diversity at its core is about people and the behavioral characteristics that guide how we interact, i.e. “culture.” To better understand this notion, let’s examine the impact of culture within our workplace organizations. Several aspects of culture shape today’s workplace. For example, employees’ communication style, time consciousness, and work practices all stem from their cultural programming. The dominant cultural norm here in the United States dictates that business communication be specific and explicit. Meaning is found in the actual content of words with very little left to interpretation. However, in many ethnic and international cultures, communication is more implicit and indirect: meaning is found in and around the words themselves.
By better understanding the cultural norms and values within their organization, leaders and their units benefit. When this enhanced comprehension becomes a way to guide efforts, hiring practices, and employee relations strategies, diversity initiatives move away from lip service and become actualized. An honest cultural audit of an organization not only helps drive diverse policies and procedures, but goes far in the creation of welcoming workplace communities in which genuine cross-cultural interaction and respect for diversity are naturally occurring. And as an organization’s culture is identified and shared, diverse employees are more likely to express their cultural uniqueness within the context of stated organizational norms and values. When organizational culture and individual human values work together, there can be synergy: the interaction or cooperation of two or more entities to produce a combined effect greater than the sum of their separate effects. That is a definition of diversity in which we can all find meaning.

Reasons for Expatriate Failure

• Inability of spouse to adjust
• Manager's inability to adjust
• Other family reasons
• Inability to cope with larger international responsibility
• Difficulties with new environment
• Personal or emotional problems
• Lack of technical competence

Factors of Expatriate Selection

(a)Technical ability
(b)Cross- cultural Suitability
(c)Family Requirements
(e)Cross- cultural Requirements

Training for Expatriates:

An expatriate needs following trainings to cope with cross cultural challenges:
(1) cultural training,
(2) language training, and
(3) practical training.

Cultural Adjustment of expatriate

An expatriate's cultural adjustment typically comprises three stages .
1st Stage : Tourist Stage
the expatriate enjoys a great deal of excitement as he or she discovers the new culture. This stage is called the tourist stage.

2nd Stage Disillusionment:
In this stage, the curve hits the bottom and is characterised by what is called culture shock.

3rd Stage : adapting or adjustment phase.
If culture shock is handled successfully, the expatriate enters the third stage, which may be called the adapting or adjustment phase.

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