Cross Cultural Management Research

Topics: Corporation, Multinational corporation, Globalization Pages: 20 (6755 words) Published: October 29, 2011
Management in any corporation requires a strong management plan and involves diversity or one type or another. Organizations that become multinational corporations have an even greater challenge. These multinational corporations have to take into consideration factors such national cultures and subcultures, religious beliefs and traditions, labor laws, and local regulation. These are only a minute number of diversity issues a multinational corporation will face. This paper will highlight several multinational corporations such as Exxon, Wells Fargo, Citi, Bank of America and Hewlett Packard and how they have created strong international management plans to overcome the numerous hurdles involved in cross cultural management to become successful corporations across the globe. Key Team Findings

Cultural and language barriers differ from physical barriers because the aforementioned barriers can be eliminated. Additionally when employers place an emphasis on learning a language the organization can reduce the agency’s economy of scale. Moreover when organizations prioritize the understanding of a host country’s language and culture communication will be enhanced. Motorola and Bank of America are two corporate conglomerates that understand fully the importance of addressing language and cultural barriers.

Motorola’s Technology center in Italy is working diligently to produce and offer Mya Voice Platforms to allow consumers and organizations that are exploring the idea of relocation to communicate using the aforementioned technology to eliminate language barriers. The technology and software will allow users the capability to exchange dialogue in either a text to text or language to language format. Motorola and the technology will transcend barriers that were once common in the global marketplace.

In an effort to assist employees Bank of America has rolled out a training program that articulates the importance of understanding the cultures and customs of team members who work abroad. Bank of America has prepared a 40 minute video that helps American based employees understand the nuances associated with their Indian teammates. All employees will be required to view the video in entirety. Bank of America understands fully that the organization is dealing with a global customer base, and that in order to be successful the organization will have to employ workers from all over the world. Both SC Johnson and Citi have embraced diversity and realize a major advantage of diversity is the enhancement of creativity, better decision making, and more effective and productive performance (Hodgetts, Luthans, & Doh, 2005). Another important aspect for managing across cultures is that both organizations strategies are addressing the cultural similarities and differences in their varied markets (Hodgetts, Luthans, & Doh, 2005). This is apparent in the makeup of their employee base, with working hard to match the employees with their cultures in which they work and live. Another important aspect both companies offer is networking groups for the different cultural groups so people do not feel excluded, but included.

“India is attractive to multinations, and especially to U.S. and British firms” (Hodgetts, Luthans & Doh, 2005, p. 27). One advantage to conducting business in India is that many people are well educated, they are advanced in technology and many people can speak English. Additionally, many skilled workers can be found in India. Companies that expand into India have showed steady growth and can be an attractive option for investors (Hodgetts, Luthans & Doh, 2005). Systems India was able to restructure and expand a great deal from 1989 to 1994 due to the economic success of the company in that country.

When conducting business and operating a business in other countries, risk is always a factor Risk to culture was a factor when ExxonMobil began operations in Nigeria, but there was also economic risk. Some...
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