Challenges in Managing Multinational Company

Topics: Globalization, World Trade Organization, Corporation Pages: 3 (919 words) Published: September 27, 2010

One of the common challenges faced by Malaysian multinational company is cultural diversity. Culture is the learned, shared way of doing things in a particular society. It is the way, for example in which its member eat, dress, greet and treat one another, teach their children, solve everyday problems, and so on ( Schermerhorn, Hunt, Osborn 2003). Cultural diversity in workplace refers to the range of differences between individuals in an organization. It affects the way in which people feel, think and act, and frequently, people either refuse to see it, or don’t want to see it. People from different countries always have different tradition and attitudes towards business. Some company decides to expand their organization globally but unsuccessful because they fail to realize one important thing. They do not change their organization to adapt to the new country. Malaysian multinational company can be successful if they evolve into a diverse organization which employs people from diverse culture. An international company needs to understand the host market. In order to have better understanding of host market, an international market needs to employ locals. Hence, in employing local resident international organization opens its doors to cultural diversity.

When cultural diversity is not properly managed, it caused problem, misunderstandings, and conflicts will arise. I believed that to make Malaysian multinational company successful, it is important that they embrace the fact that the world today has no boundaries. Cultural diversity in workplace and elsewhere should be respected. Employees’ skills, talents, ideas, and values must be developed and improved. An organization must be able to capture the energy and ideas of all employees in order to meet the challenges of the competitive marketplace. I also believed that Malaysian multinational company can be successful when it comes to managing diversity if they managed to bring people...
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