Cultural issues in management Essay Example | Topics and Well Written Essays - 1500 words

Cultural issues in management - Essay ExampleKey issues in supranational HRM In the contemporary environment of competitive business, expanding business must understand the changing socio- heathenish background of the country, where nonp aril needs to establish the business interests. Social scientists assert that national cultures are vital elements that determine the negotiants assumptions and help evolve business strategy based on behavioral pattern (Cohen, 2004 Rubin & Sander, 1991). mainland China has a culturally distinct economy. The socio-cultural value systems are vastly several(predicate) and business practices are actually sensitive to behavioural pattern and intrinsically linked to their socio-cultural value system. Dowling et al (1999) argue that Chinese socio-political and cultural environment is complex, especially as Chinese nationalism remains key obstacle for foreign firms and poses earnest challenge to their IHRM. Many scholars strongly support use of local t alent and resources as important authority of joint ventures that promote local economy as people prefer to deal with local professionals preferably than expatriate managers (Schuler, 2001 Poole, 1999). This is a highly pertinent issue for foreign firms as they tend to spend capacious amount on training and cross-cultural adjustments. There is lot of conflict if the expatriate manager tries to apply his/her own values on the local people. Chinese culture promotes guanxi, a shared verbiage and a shared culture, where Chinese employees prefer to interact with people who are well versed in their language and culture (Dunning & Kim, 2007 Chen & Starosta, 1998). Thus, IHRM has huge responsibility vis-a-vis managing its sympathetic resources and optimizing performances when their business has to be conducted with Chinese, within or outside China. The need to understand the Chinese...Microsofts HR strategies were highly creative which were able to exploit human competencies. It promo ted a facilitating organization culture that emphasized cross-cultural understanding, trust-building and mutual respect. Preparing cross cultural teamsMicrosoft promoted multicultural team. Microsofts success in China was mainly due to their understanding of Chinese culture and people which was work by the HR leadership.NegotiationBusiness negotiations are intrinsic part of corporate strategy which is intentional to reduce conflicts and promote mutually satisfying partnership contract vis--vis business goals, financial outcome, terms and conditions, background etc. In international business across national borders, negotiations are sensitive issues due to different value system, socio-cultural perspective, currency, legal paradigms and market conditions. Culture is integral part of negotiation. Effective CI practicesCI practices are intrinsic part of global business planning which rely on information gathering regarding non-homogeneous aspects of business in countries which are perceived to have huge potential for business expansion (Adidam et al, 2009). China, organism a major developing economy with vast potential, is highly attractive for foreign businesses. IHRM practices must be dynamic for effective negotiation and running of businesses in countries like China which offers huge opportunities.