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Literature review on effect of diversity at work place
Cultural differences in business
Literature review on effect of diversity at work place
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With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization. Globalization can not only affect a company opening an office in another country but it can affect a small local business as well. As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product. For instance a steel company located in Pennsylvania may suddenly find orders coming in from South American factories. How the steel plant chooses to handle this new international customer could mean ... ... middle of paper ... ...ade becomes a larger part of our countries economic well being, our nation's workforce will have to be responsive to the new trading environment. We can do that by looking beyond our "neighborhood" when it comes to selecting a workforce. Having an individual that is familiar with the customs of another ethnic group an individual who is a member of the ethnic group you are doing business with, is fundamental in creating a truly rewarding business. For many companies like Banco Popular, or Intel having foreign and bilingual employees has proven to be the right ingredient for their success. An added benefit to a diverse workforce is that often ethnic stereotypes and barriers are broken down in the process. Bringing our nation one step closer to the American Image of the melting pot.
Q: Which of the following two concepts is more critical for international Human Resource Management: understanding the cultural environment or understanding the political and legal environment? Why? Include key terms and concepts from the textbook.
Cultural diversity can bring tangible benefits to an organization who is ready to foster, maintained, and value the difference in cultures. The marketplace is becoming more competitive, many business executives are expanding and developing new ideas, products and services beyond their usual culture or environment. A diverse workforce will help to understand the need and interest of another culture within and outside of the region. Thereby helping the company to expand globally, acquire more business opportunities, provide opportunities to create an excellent, diverse customer base and remain compe...
Diversity in a workforce can diverse the customer base. It is happen from the contribution of specialist skills and cultural awareness from the staff. The staff that come from different country has different cultural backgroud so that a firm that do business globally can gain success because the staff can understand the customers needs and want in each country. Language skills are important in order for a company or a firm to communicate with different company in different country. Eventhough English can be said as the worlwide communication language but to build the good relationship with other people of the world, we must know their language. This can become an advantage for a firm that have diversity of workforce as the employee can help the firm to understand their words and also the meaning behind those word
Globalization of human capital is where, human resources are sook after by companies from all over the world. Due to the increased demand for skills at a lower cost, companies will tend to look for employees to work in their premises from all over the world (Webforum, 2015). In this regard, since companies are extending their operations the entire world over, human capital globalization is inevitable since they will need to work with people from these countries for them to successfully exploit global markets.
Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.
For any company, globalization brings with it many new and complex decisions. Plunging into unknown waters, a company must make decisions regarding research, segmentation, targeting, positioning, pricing, distribution, and advertising, to name a few. This paper will analyze the globalization process, describing the many motivations that influence a company to internationalize. First, the problem of deciding whether to internationalize will be analyzed and questioned. The paper will then detail some key challenges that a company could face when expanding operations into an international market.
It would be very easy to refer to international human resource management as little more than HRM on a national scale with some additional features that indeed similarities in the role of human resource management within national and international organizations; however, there are also some significant differences, not least of which is the development and deployment of staff in different national and regional locations around the world. The somewhat overused maxim encouraging the imperative to ‘think globally and act locally’, if nothing else, illustrates the importance of looking at the management of global organization at two, sometimes distinct, levels. The first of these may take the form of a management strategy based upon the concepts of standardization and universalism where the principal aim is to create a management culture that is recognizable to a specific organization wherever it operates around the globe. The second level of strategy may involve taking different approaches to management in different locations around the world. This second approach may be particularly important where there are significant cultural differences, brought about by national and organizational culture, between one location and another. The role of the international human resource manager is, therefore, that of setting the tone of management for the organization as it conducts business across the globe dependent upon cultural variation and variety and market needs from one region to another. Put perhaps more theatrically, the international human resource manager is the conscience of the international firm. （Wildish,C.2002,pp.207-208）
It is interesting and very pleasant to see how people from across the world work together to come up with ideas that make their company the best in what they do. This interconnection among people and places throughout the world which is with increasing level is called globalization. Some people think of it as internationalization where people from different parts of the world work with each other to bring out something quite enjoyable. Before, each country had its own business which didn’t collaborate with anybody else but themselves within the country. Since globalization has spread quite far, there are numerus examples available in our world today. Globalization can be found in economics, blending of cultures, technology,
For today and tomorrow's employers, talent comes from a global workforce. Organizations with international operations hire at least some of their employees in the foreign countries where they operate. Even small businesses that stick close to home often find that qualified candidates include some immigrants to the United States. Changes in the contemporary global economy highlight many of the emerging challenges facing human resource management (HRM). Many societal changes increasingly bind countries into co-dependent nations in which goods, capital, and people move freely. Between these communities, however, there remains a mixture of cultural barriers. To remain successful in this new global age, agencies must commit themselves to expanding their business. They must also create internal plans that are likely to succeed in global competition. Applying successful global strategies requires careful attention to the inconsistencies created in the management of human resources and the maintenance of complex organizational cultures.
International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
In the last decades, small national companies have grown in amazing scale all around the world. Companies that once were family owned have become huge multinational corporations. Corporations, which by the side of globalization, have expanded all around the world. International business has become one of the most important areas of business due to the need for companies to expand to markets outside their borders. Companies have had the need to adapt to another cultures and business systems. At the same time the way human resource management works has changed. Multinational corporations have had to adapt to new human resource requirements in order to be more effective and efficient. The business melting pot that surged in the last decades has forced corporations to develop a diverse workforce with the ability to expand their businesses.
Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
In today’s continuously changing world, many experts say that globalization is what every business, organization, and nation should seek and welcome as a positive change. However, many people are unaware of the main focus and meaning of Globalization, especially in comparison to Localization. A large number of people believe that globalization is just another common word used to refer to changes and differences that cannot be explained or accounted for. Therefore, many different activities or changes are improperly labeled to be a part of or caused by globalization.
Globalization is huge part of the success of some the biggest firms today, from Apple, General Electric, to Google. It allows a business to develop international. It allows reduced costs by maximizing production known product lines, allowing to expand into different markets gives a more competitive edge and expanding to new technology helps to increase to a bigger company, having more political edge within trade agreements.
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.