Cross-cultural management Essay Sample
CROSS-CULTURAL MANAGEMENT IN HTBG SMEs: CHALLENGES AND STRATEGIES
Cross-cultural management in the organization is one of the important factors of competitive advantage of today’s company in the global marketplace. Accelerated globalization, shortening of product or technology life cycle and openness of foreign markets have allowed many companies both large and SMEs to internationalize their activities and markets much more rapidly and early than the one advocated in the stage wise step-by-step globalization in the Uppsala model. Many SMEs technopreneurs during the turn of the millennium have took their firms into the global market from the very inception or following two to three years of their formation. Very rapidly, they have expanded to the foreign markets and encountered many challenges in the new markets. We call these firms as High-tech born global (HTBG) SMEs. The HTBG differs in many aspects from their peers. They offer similar kind of products and services in all the market they serve. The target population for their services has very often same social strata and do possess the same kind of attributes.
However, there are still cultural differences in each of the market. The HTBG does not have the experience of dealing with cultural issues as they have no or little experience before they started their innovative ventures. Despite their innovative products and technological uniqueness, the HTBG faces enormous challenges to manage their ventures in abroad. In our knowledge, no study has ever taken to study how the HTBG SMEs manage their cultural diversity in the Head Office and their subsidiaries in abroad. The current study is exploring how the HTBG SMEs manage their cultural diversity in their head office as well as in the subsidiaries. Our discussion highlights whether these firms should transplant the HQ cultures to the subsidiaries or subsidiaries should have their own culture or the HTBG SMEs should develop corporate culture comprising the best elements from each culture the firm have presence in. The pre-paradigmatic stage of research on this topic was behind our choice of case study method for this study.
The diversity of the workforce in Quebec is a reflection of today’s society that now has over a hundred cultural communities. During the period 2007-2011, the volume of admissions of immigrants totaled 245,606. More than two thirds (67.6%) of immigrants are admitted in the economic class immigration, especially as skilled workers (60.8%) or as business people (4.6%). Forty percent are native to North Africa (21.4%) and South America (9.7%), and Western and Northern Europe (9.3%)1. Today, companies have a wide variety among employees, not just ethnicity, but also age, sexual orientation, etc. Although diverse workforce provided a range of skills, especially in the context of globalization, it is a challenge for managers. A good management of diversity shows that the company has reached a certain maturity and it sees a competitive advantage. Managing diversity means “plan and implement systems and methods of personnel management to maximize the potential benefits of diversity and to minimize the disadvantages”2
The main components of the diversity are race, gender, culture, nationality, disability, age and religion. “Culture can be defined as “the set of distinctive spiritual, material, intellectual and emotional features that characterize a society, a social group or individual. Subject to nature, it encompasses environment, arts and literature, lifestyles, fundamental rights of the human being, value systems, traditions, beliefs and science”(Sultana et al. 2013). In this work, diversity is rather seen in context of cultural diversity that affects the company’s identity. The aim of this work is to apply the theoretical concepts in management of diversity in a real world company, CREAFORM. First, a little theory related to diversity will be covered, followed by the methodology used to collect the information necessary for our analysis. A diagnosis will be made and these results followed by a list of general and specific recommendations to help the target company in the management of diversity.
CREAFORM is a technology company and 3D digital solutions offering its employees a unique working environment, led by a young and dynamic team. Founded in 2002 in Lévis (QC), it now has over 326 employees in three continents (North America, Europe and Asia) and eight offices. In 2012, just ten years after its creation, the company inaugurated the NSERC Industrial Research Chair on-CREAFORM 3D scanning in partnership with the Laval University. CREAFORM works tirelessly to remain a leader and a pioneer in portable 3D measurement technologies. To date, it has more than 25 patents in several countries other than Canada, such as France, Germany, Japan, EEUU, etc. Their portfolio is comprised of different products (3D scanners, coordinate measuring machines, software) and related services (training, inspection, etc.)3. The company has a strategy to revitalize the brand positioning in all target markets in metrology (industrial measurement), non-destructive testing, health care and engineering. To achieve this, the strategy aims to better communicate the value of the offer in these markets and increase company recognition on the international scene. To continue to grow internationally CREAFORM must be able to manage cultural diversity both internally and with customers from different countries.
CROSS-CULTURAL MANAGEMENT AND BORN GLOBAL SMES
Head Quarter culture to the subsidiaries in abroad (I meant whether HQ culture is good to transpose to the subsidiaries??) Subsidiary culture (Or, Subsidiary needs to have its own organizational culture) Corporate Culture (or, HTBG SME needs common corporate culture with some adaptation, we need to focus on this aspect as our concluding remarks……..) Literature review on cross-cultural diversity
Corporate culture refers to modes of managers and employees of a particular company within their company and also vis-à-vis third parties. When a company established in another country where the culture is very different from the country of origin, diversity management must be done on a larger scale. Depending on the model of Hofstede (1980), national cultures can be summarized according to five dimensions: individualism / collectivism, power distance, uncertainty control and masculinity / femininity and orientation short / long term. A Quebec company that wants to implement also needs to know, analyze and evaluate the national culture of the country where it will operate for maximum advantage of the benefits of diversity and minimize possible difficulties. Here is a definition of these dimensions in order to understand the definition of society that they can obtain: Individualism versus collectivism
Individualism is defined as a society where individuals bear little and everyone is responsible for his fate. Collectivism, meanwhile, is a company
with tight links between individuals. Each favor the well-being of the group before that of the individual.
This dimension expresses the degree to which to which the less powerful members of society accept that power is distributed unequally. This has an impact on the acceptance of a hierarchy in which each occupies a specific position. A company with a low power distance results therefore require an equal distribution of power and justification for each inequality.
Control uncertainty expresses the level of ambiguity and uncertainty that members of society can achieve before they feel uncomfortable. Control or letting go is a constant choice that individuals must take and the decision is defined by this parameter. Masculinity versus femininity
Masculinity is: achievement, heroism, fighting and material rewards for success. In short, the company is more competitive. Femininity is: cooperation, modesty, caring for others and quality of life. The company is more consensus-oriented. Long-term vs. short-term orientation
The short-term orientation can be interpreted by the value of traditions, low tendency to save for the future and a focus to the fast results. In companies with a long-term orientation, people have tendencies to invest and save; they are more likely to value perseverance and future results. Here is also a more specific strategy to implement by the company. Yeganeh (2008) proposes a decision model in three distinct stages: • Identify differences between the corporate culture of the parent company and the culture of the host country; • Choosing a strategy for managing cultural differences between integration, acculturation and laissez-faire; • Implementation of selected resources and adopting appropriate means strategy.
METHODOLOGY: SINGLE CASE STUDY
Choice of the company for this study
In order to make a comprehensive analysis of the reality of Quebec companies in the management of cultural diversity, it was essential to choose an organization that not only developed its activities in foreign countries, but was also growing. The selection criteria were established on three main points: the scope of business development abroad, sustained growth activities, and the importance that managers are the organization of cultural diversity. The first criterion allows a sufficient sample to draw a clear picture of the way in which the company operates on a daily basis, the diversity of culture within their teams. Having offices in different continents, so it’s easier to ask a proper diagnosis, and just develop some general observations to the management habits that organization.
The second criterion, making growth a key element in the selection of organizational choices, it is clear that the company has used some effective methodologies to violate difficulties of expansion on soils ultramarine. The successful export of Quebec knowledge abroad results not only from the agility with which its managers have adapted their methods, but it also demonstrates that its management team has enough experience of ethno-cultural experiences for rigorous conclusions be drawn during the study. Finally, the last criterion chosen is the interest of the organization’s leaders to the ethno-cultural management in the staff greatly facilitates exchanges with them. By ensuring that this be considered by company executives, it is clear that some appropriate internal procedures have been implemented. Thus, it will be easy to make appropriate recommendations, which will also be appreciated by managers. Following the analysis of these criteria, CREAFORM seemed like the best choice since this young Quebec organization operates in several continents of the globe is experiencing significant growth since its inception and the human resources director, Olivier Vachon, noted that the active management of cultural diversity in their organization is a priority.
Presentation of the resource person for this case study
As mentioned previously, the person contributor to our study is the human resources manager of the main office in Lévis, Olivier Vachon. The young manager is the organization for 8 years now; he has a degree in Industrial Relations from Laval University and is a member of the Order of Certified Human Resources Professional (CHRP). It is the main reference for the human resources office of Quebec, but also the orchestra difficult situations that arise in foreign offices together. Very often, Mr. Vachon has to move in offices in the United States, France, China, Japan and Germany. In light of this information, we felt that Mr. Vachon is the person well informed and most aware of the realities of management both in head office and subsidiaries in foreign markets expanding in 9 countries of three continents.
Choice of the method used to gather information
In order to have a concise picture of the current situation in terms of CREAFORM managing cultural diversity, two methods of collecting relevant information were targeted, first an extensive literature review to develop our understanding and conceptual framework and then to make an interview observation with a resource perso in order to validate our understanding. CREAFORM has shown great interest in actively participating in the study and assisted us to provide various information regarding their human resource management challenges and strategies in both home office as well as subsidiaries in abroad. We have used a questionnaire containing 19 open-ended questions, added in Annex 1, for our semi-structured interview. The division of the questionnaire into 4 distinct parts: the development environment of the company, the current integration of cultural diversity within the organization, the benefits of this diversity, and the challenges it entails, has facilitated fluency participant. The first part has to be familiar with the company, instructing CREAFORM’s core values , mission and the composition of their teams. Better equipped to take ownership of their reality, so it is easier to judge internal methods used to manage and promote ethno management. The second part is the actual integration of cultural diversity in the organization, is to clearly identify the internal policies in place to integrate the employees of other cultures , as well as accommodations selected by CREAFORM for facilitate management. Meanwhile, the third section on the benefits of cultural diversity within the organization is a concrete analysis of the benefits of this practice. Finally, the last part asks the organization to make a retrospect on the past, present and future that has an active management of multiple cultures challenges.
Highlights of the interview
In the first part of the interview, which can be put into context the measures being taken by CREAFORM to facilitate the integration of employees abroad, Mr. Vachon says that there is not really culture of the organization itself. For a new employee who lives in a country other than Canada, away from the headquarters, the same heart of the organization, it may be difficult to clearly identify the organization and be in full rally. When asked to Mr. Vachon develop the differences in personnel management in Quebec and abroad, gentleman mentioned that they used the same basic principles of human resources, while incorporating some specific cultural elements specific to each country. Here, it is clear that the organization is not clear as to make accommodations and respect towards cultures employee rules. Quebec and trends at specific events, some reaction steps are taken is exported. Consequently, yarn needle, policies regarding the management of these differences are set up and can be applied elsewhere in similar conditions. In addition, later in the interview, Mr. Vachon confirmed that there was no difference in tasks required to Quebec employees overseas as employees. Again, it is possible to assert that tax Québec standards abroad and therefore, this may have long- term, is a deterrent or as a psychological barrier between the organization and its new foreign members. A little later in the interview, Mr. Vachon says that CREAFORM has no external sources which refer for ethno cultural management.
Therefore, it is the sole judge problematic situations that causes and can’t draw, apart from the web, the experiences of others . Although it can also share their concerns with other members of management and thus have other opinions, there will always be subjective in the management of these internal problems effect. In the second part of the interview, he was asked Mr. Vachon develop the positive side, the benefits of such an ethno-cultural management within the organization. It has exposed the idea that internal cultural diversity has allowed them to more easily export their knowledge and become more efficient at the global level. The success of CREAFORM recent years is much due to the support of members of other cultures that have managed adequately promote the organization in their country. Having local people as employees, it was possible to export effectively Québec expertise. Overall, in the last part of the interview, Mr. Vachon has developed on the challenges qu’occasionnait cultural difference among members of the organization. In fact, he raised that management is often minimized and differences explain most failures or challenges prepared to CREAFORM. For example, he told the Quebec compensation policies were not easy to export to Japan, because they did not fit with their manners. This is one of the conflicts identified by Mr. Vachon, he had to make a long way between Quebec internal policies and expectations of Japanese about their compensation. Manners have a direct influence on the behavior of employees and Mr. Vachon says it is important to understand these behaviors and motivations.
Context of the organization
Based on information gathered from Mr. Vachon, it was possible to see that CREAFORM has experienced remarkable growth since its inception in 2002 in Lévis. After only 10 years, the company now operates in six countries on different continents. In April 2012, it redefined its image and creating a new identity of its own and sets an aggressive mission was to be “a leader and a pioneer in portable 3D measurement technologies”4. It also offers employees some values to grow, to adhere to the ideology of the organization. There are 3 main or innovation, passion and determination. By analyzing these factors, it is clear that with its ambitious mission, active management of cultural diversity is a key point to achieve their intrinsic purpose. To become and remain above the leader of these technologies, CREAFORM has the choice to integrate overseas employees to their internal culture and ensure adherence to these values and mission. With the results reported in the proportions of employees across age groups, sex and visible minorities, it was possible to deduce that there is a high proportion of men in the organization. The majority of their employees are also under the age of 34 years, which is consistent with the image of the CREAFORM visionary and spirited ambition. Although the company operates in many countries around the world, only 2% of their employees are considered members of
visible minorities. However, this is directly attributable to the fact that the head office is located in Lévis, a suburb of Quebec City.
DIAGNOSIS OF THE CURRENT SITUATION IN CREAFORM
Following analysis of the responses received from Olivier Vachon, Human Resources Director at CREAFORM, it is interesting to see that the company has addressed the issue of diversity and gradually as it grows. This intuitive approach, which did not require the creation of any committee or writing charter, seems to have worked because the presence of CREAFORM in six different countries does not seem to have caused any major trouble related to diversity. Extensive elaboration of cultural context in the CREAFORM international firm shows the awareness and culturally competency of the Human resource executive Mr. Olivier Vachon on cross-cultural management. It was revealed that his understanding were developed more through process of learning by doing and helped to mitigate many the risks of international business expansion and hiring staff in different cultural settings. The current state of art of the cultural diversity context in CREAFORM can be summarized by the following table of the strengths and weaknesses of the company.
Corporate culture that promotes diversity at different hierarchical levels; No formal policy of diversity management is in place.
Involvement of senior management in the fair treatment of employees based on their specific culture; No assessment / training done in the past on their performance in managing diversity; Considerable efforts put in place to understand the different sub-cultures in the company and adapting with them; Low percentage of visible minorities (2%) and low proportion of women (25%); Integration strategy adopted, which takes into account the diversity, to facilitate the arrival of new staff;
Table 1: Cross-cultural context of CREAFORM.
To better understand the potential problems that the company could face in
the future, it is relevant to compare the main corporate cultures present at CREAFORM. To perform this task, it is appropriate to use the 5 criteria of Hofstede as they are the most proven theory on the subject. By observing Figure 1: Comparison of Hofstede’s parameters, it is possible to highlight some cultural differences to better understand how to behave according to the culture that the company faces. Note that the countries represented in the graph are those where the company has employees permanently established.
Figure : Comparatif des paramètres d’Hofstède5
First, it is quite easy to see that the Western countries (France and Germany) have more similar profiles in Canada and Asian countries (China, Japan and India) and therefore less conducive to conflict. The latter statement is supported mainly on the differences with respect to the long- term, the strength of individualism and masculinity parameter. Second, Japan and China are definitely countries where differences face in Canada are stronger. The high values of masculinity, risk aversion and long – term orientation to consider when interacting with employees located in Japan. Moreover, it is likely that risk aversion that explains the difference in pay with Japanese sellers and Canadian vendors as told in one of the responses to the questionnaire face. As discussions went well in trade agreements, it is clear that employees should anticipate CREAFORM long and slow negotiations even before they met their future partners.
This once again confirms their ability to prepare well for the management of diversity. About the Olivier Vachon confirmed that the corporate culture gives a prominent place to diversity: “Often we simplify a little management of “differences” “which leads to missteps”6. It is also clear that diversity is seen as an opportunity to reinforce the company rather than a hurdle. What is the attitude to take to make a business grow sustainably in the context of globalization? The constant expansion of the company to believe that they will increase alliances and interactions with the different countries where it is currently located and beyond. So we look after the local culture of each of the countries where the CREAFORM is implanted currently in order to bring out the important points to understand the potential sources of conflict. This will enhance existing relationships and
facilitate the intensification of these in the future. It was decided to give several pages of these descriptions are given, they will definitely understand the foreign partners and customer focused culture.
Rapid Expansion of CREAFOR and interactions with divers’ cultures
The comparison has been made made according to Hofstede parameters, descriptions of the various nations will be made using the same criteria. 1 – CANADA
Canadian culture is marked by the value given to egalitarianism among individuals. The hierarchy in Canadian organizations is established for practical purposes. Superiors are always available and their success depends on the efforts of each individual constituent their team. Honest and direct communication is valued. Canada has an individualistic culture. In the business world, employees must be independent and show initiative to demonstrate their competence and value. Canada can be characterized as a moderately masculine society. In fact, Canadians are ambitious but mostly tend to balance work and the pursuit of personal goals. Canadian aims still high standards of performance in all their professional activities. Canadian respond well to uncertainty, they are open to new ideas and new experiences. The expression of these ideas is obviously encouraged. Canadian companies measure the performance of management principles in the short-term, which encourages people to seek quick results in the discharge of their duties. 2 – FRANCE
Power distance is high, vertical hierarchical structure is essential in France. Senior often enjoy privileges and can be accessed without any problems. French society encourages individuals and personal opinions, taking care of themselves (and their close family) independently rather than worrying about the community around them. The favored communication is direct and everyone is allowed / encouraged to speak. France is relatively feminine and attaches importance to the quality of his life working to be able to live as they wish. The competition between individuals is not really encouraged. Management should be made to provide support and dialogue since certainty is usually sought. This can be done via theoretical concepts and academic work to clarify the details, the context and background of an issue. Rules, planning and security are sought to reduce nervousness. France is facing a short-term society. Which therefore means a respect for the traditions, standards, guidelines and quick results. 3 – GERMANY
Highly decentralized and supported by the middle class, it is not surprising to classify Germany among countries with one of the lowest hierarchical distances on the planet. Direct and participatory communication is constantly encouraged while disapproving of non- expertise based on hierarchical control. The German company is extremely individualistic. Loyalty is based on the individual preferences of each person and their sense of duty and responsibility. Communication is so honest and straight forward, even though it may hurt. Germany is considered a masculine society where performance is highly valued at the age of 10-12 years. All this thus resulting in a people living to do its job and is defined by his many personal achievements . Germany is among the countries that avoid at all cost uncertainty. Rigor and details are crucial when making decisions is necessary . It is not surprising that the German rely heavily on experts to make decisions rather than their instinct for example. The Germans have a short – term orientation, which is promoting the rapid results. 4 – CHINA
China has a relationship with the hierarchical power that makes him accept inequality, formal authority and sanctions. The Chinese are generally optimistic about the capacities and initiatives of others, but it is not advisable to expose aspirations beyond its current status. China is highly collectivist, so people act in the interest of the group and sometimes even against their own interest. Personal relationships are also valued more than the fulfillment of tasks. Chinese adopt male behavior. Continued success is made in an extreme way. It is not uncommon to find Chinese who abandoned their family and leisure in order to prioritize work. China has a relatively low result in risk aversion. The Chinese are comfortable with ambiguity, have good adaptability and entrepreneurship. China is highly oriented towards the long – term. 5 – JAPAN
Japan is a hierarchical society moderately despite popular belief . The slow pace of decision making is explained by the need to obtain the approval of all levels by an unbalanced hierarchical power. This shows the inability to make decisions alone without consulting other levels of hierarchy. The Japanese have several characteristics of a collectivist society as priority group harmony rather than the expression of individuals. The Japanese are famous for their loyalty to the company that employs them. Japan is one of the most male societies on the planet. Combining this with their collectivism, aggressive and competitive behaviors are not common. The competitions takes place between different groups and strongly motivate employees to work long hours. Japan is a country that seeks to avoid uncertainty at all costs. Managers require a large amount of information before making a decision. The Japanese company also has an orientation exceptionally oriented long – term. This is what justifies the high rate of reinvestment of business R & D. Corporate Sustainability is a priority for the Japanese in order to serve future generations . 6 – INDIA
India appreciates and accepts no problem hierarchical power . Indian like that organizations and society are divided vertically. Employees expect to receive clear guidance about their work . Communication is directive and usually downward . India has collectivist traits that make that individual actions are always influenced by family, neighbors, group work, etc. . Indians belong to a male society but has an extremely varied and intense spirituality that allows Indians to advocate certain values, such as humility, which are contrary to this feature. India has an average tendency to avoid uncertainty. Thus, India is traditionally a patient and tolerant of unexpected that makes countries so that the initiative will be rare. Indians belong to one oriented towards long – term culture. Time there is not a linear concept, much less than in Western society. Respect for punctuality so there is not very important. It is important to understand that the company was only ten years old and still a limited number of employees. So there are lots of concepts that form the basis of diversity and its management should be further developed by the company. Some traps have been avoided so far; will present a more and more common with the future growth of the company. The effectiveness of the company could probably be increased depending on the management of diversity. Thus, the next section presents a
number of recommendations to improve the performance of the company’s diversity.
CROSS-CULTURAL MANAGEEMENT IN THE HTBG SMES
Based on the responses to the following interview with Mr. Olivier Vachon, expansion internationally has not caused significant problems in terms of cultural diversity. By cons, several aspects have to tweak in order to improve organizational tools in place and maximize the benefits that cultural diversity can bring. Jocelyne Brault Emploi-Québec supports these claims: “A company provides a strategic and competitive if it incorporates the principles of diversity management advantage.” Taken from the same book of Emploi-Québec, here is the list of several important advantages that will allow the company to stand out against the competition: • Improve service delivery to customers, which is also increasingly diverse; • Develop new products and develop new markets;
• Increase productivity;
• Making tracks new solutions by mixed teams;
• Increase collaboration and partnerships with a win-win approach; • Manage change more effectively.
Once the intentions put in the foreground, several recommendations are proposed to allow CREAFORM stand out in terms of cultural diversity. Following the study of the interview with Mr. Vachon, suggestions for improvement will be directed towards the preparation of a management policy of cultural diversity, a study dealing with the internal performance and ultimately the importance of greater proportion of visible minorities and women in the company. Establish a policy for managing cultural diversity
The lack of a policy for managing cultural diversity is a significant weakness at CREAFORM. Although it has had no adverse impact on the operations of the company so far, managers need to develop business models that can be applied to cultural differences that impact on current activities. Currently, they are being responsive to conflicts experienced and they find solutions when the event occurred. By cons, it only takes one fatal problem situation to put the company in a difficult position. However, CREAFORM should not expect that the impacts are material to the financial results or negative media publicity is directed towards the latter, before building a comprehensive policy guiding management decisions facing cultural diversity. Here is a table summarizing the key elements that must include an internal cultural diversity policy, proposed by the Group of the School of French trade Pau and that could very well be the basis of the company CREAFORM. The last column is composed of the company’s own designed and built in the light of the questionnaire completed by Mr. Vachon recommendations. In addition, the objectives of these recommendations are given in brackets.
Recommendations for the company CREAFORM
• Conduct an inventory related to diversity in the workplace; • Divide the number of years (age, sex, education, etc..) And cross by hierarchical level salaries and applications received; • Follow up of staff in place by countries where the company operates. Disaggregate information by job categories, gender, age, education and country of origin (Knowing the composition in real time, of the company’s workforce. Afford the procedure.). • Implement practices to combat misconceptions and improve the image of the company; • Develop a code of ethics represents a huge commitment of senior management; • Establish a policy that will hire a high proportion of visible minorities and women. When hiring new resources must come from one of four minorities listed above (Expand fields opinions from different cultures). • Encourage the hiring of visible minorities for management positions where skills are equal (Promoting cultural diversity) • Develop practices to improve recruitment;
• Establish partnerships with schools whose purpose is to recruit visible minorities; • Expand recruitment sources;
• Opting for temporary work;
• Establish partnerships with various schools around the world. Thereafter, hire international students to prepare cultural notes. (Cultural diversity
and renewal of the existing workforce will be made this way) • Assist in different countries, at job fairs to recruit new employees. (Recruit new talent) • Adapt recruitment process;
• Train recruiters to prevent discrimination;
• Ensure anonymity and select by skills;
• Limit the number of selection with the same academic training to reduce the similarities; • Encourage the selection of visible minorities across 1 of 4 in order to ensure cultural diversity. (Restore the proportion of minorities in the countries where the company operates) • Revise the managerial framework;
• Integrate executives representing different companies to regulate; • Establish committees of diversity;
• Encourage women and visible minorities when it is equal skills; • A committee should be established to ensure cultural diversity across countries. (Promoting cultural diversity)
Obtain feedback from their employees
Working on very different cultural and Western platforms, both Eastern CREAFORM must hear from their employees on the management of cultural diversity. There are no better ways to do this in order to know the position of the company deal with this important aspect. In reality very fierce international competition, the world of high technology is constantly evolving. Therefore, the interests of effective management of human resources will enable it to retain key elements allowing them to stand out from the competition. In addition, the layouts of a dedicated collecting employee opinion survey have a positive impact on the brand recognition that they have for the company. They will feel involved and desire to do their part in improving the quality of life related to cultural diversity. Once the relevant information collected, the organization will be better prepared if ever has the opportunity to move into a new area. To complete this major task, a tool has been designed and is currently being used by several large companies, the DIVERSImètre. The latter is divided into six themes or strategy and leadership, organizational culture, intercultural competence, recruitment, onboarding and ultimately job retention. Here’s what can a section of the questionnaire look like: Theme: Strategy and Leadership
Our organization recognizes the differences and individual needs. 1
Our organization has integrated diversity strategy.
Our organization has developed practices favorable to integration employees from diverse backgrounds. 1
Our organization is concerned about the respect of the right to equality. 1
Our organization offers everyone equal opportunity based
Scale used: 1 – not at all 2 – to a small extent, 3 – to a large extent, 4 – totally. Promote the contribution of multiculturalism
The results of the questionnaire were raised on a small proportion of women and visible minorities. Although statistics show that the high-tech field is an area where women are found only in a small proportion, it’s a safe bet that the vast majority are found in Western countries. In many Eastern countries, such as India and Japan, the role of women is minimal within companies. However, it is pertinent to check the possibilities and find a way to integrate them into a function that might suit them. According to a study conducted by the Desautels Faculty of Management at the University MCGill and in close collaboration with the Institute of diversity at Ryerson University, the results emerged show a small proportion of women and visible minorities in international business and this, despite the interesting benefits that these resources can provide7. Indeed, stimulation of creativity, a change in the dynamics of the workplace, diversification of ideas within work teams is a few examples for the integration of these resources.
Being – given the fact that culture cannot adapt to the company, it must find the most effective way to adapt to it. Second, although the company has expanded its activities in six different countries, there are only 2 % of employees who are visible minorities. Multiculturalism can bring many beneficial advantages for the company. Using the five dimensions of Hofstede is power distance; CREAFORM has to balance the strengths of these dimensions to reflect more accurately the corporate culture. As pointed out in the section on the strengths and weaknesses of the six countries that house the offices of the company hold very different characteristics. Consequently, the increase in the proportion of visible minorities and women promote multiculturalism in each institution. Among other things, the transfer of resources from the headquarters of the company would enable it to facilitate the spread of corporate culture that want to share the highest levels. Sharing cultural differences between philosophies engendered the emergence of new innovative ideas making the company grow considerably.
As summarized by Meier (2004) “Intercultural management is based on a balance of management, always fragile, between preservation and transformation, with a central concern interaction. This is way that teams can exceed the stage of behavioral learning and achieves intercultural learning that will enable individuals to overcome their own cultural system and agree with others. ” No one can deny that globalization has had a significant impact on the methods of human resources management and today the best opportunities for profitability and prosperity exist beyond national borders. Companies that choose not to run the risk of opening up to international markets and grow
only at the local level will struggle to cope with their international competitors and to compete with them. Cultural diversity has become a fundamental pillar in the management of companies.
This new issue has prompted managers to take the necessary steps to make diversity an asset for the company. In an attempt to highlight the political management of cultural diversity in business, we have chosen to rely on the study of a real case, CREAFORM, a perfect example of a Canadian company technologies and solutions digital 3D for growth and internationalization. Located in various countries, this company does not seem to have a well-defined management policy of cultural diversity that facilitates the integration of employees in abroad. Certainly, the international openness has not caused major problems in the management of diversity. The company seems to master the “rules of etiquette in business.” However, manage each problem separately and its timing is probably not a good sign and does not reflect a good image of the company. This can cause conflicts, whether between employees or with customers, as well as delays in the workflow. It was suggested some recommendations, three major changes need to be made to improve the management of diversity at CREAFORM. We must , first of all , write a policy for managing the diversity that is crisp and clear for everyone and not only reflects the company’s mission , but also considers the diversity of human resources as a strategic advantage guarantee the performance and efficiency. Then you have a study that deals with the internal cultural diversity and performance, this study will aim to ensure greater involvement of employees in achieving business goals.
And finally, it is very important to promote the integration of visible minorities and women in the company. Our study allowed us to conclude that managers must have an open mind and always be listening to their employees. In fact, a diverse human resource is an asset and a key to future growth and a competitive advantage. Social and cultural characteristics of various nationalities can cause problems of misunderstanding and provoke tensions resulting conflicts that sometimes are expensive and can slow productivity. However, a good integration strategy fosters creativity and innovation and allows better resolution of problems. Diversity to better meet customer needs and improve the brand image of the company by making it more attractive. In addition, the management of cultural diversity is not just the application of a pre- cultural model.
This is a challenge that is part of the daily life of the international company. A challenge not only depends on the different cultures but also economic and social contexts and culture of the company and its mission. Taking the step towards internationalization must be redesigned several times. Models should be developed and updated as though the progress in the field of technology and information have helped to shorten distances and eliminating boundaries; culture posits still a formidable challenge in internationalization of firms. However, Management policies for cultural diversity seem to be more often applied in domestic firms that employ a diverse workforce in those who have internationalized.