MGN501 - Final Group Project - Approaches To Managing People
MGN501 - Final Group Project - Approaches To Managing People
MGN501 - Final Group Project - Approaches To Managing People
Business Cultures.
Submitted to
Submitted by
Section 88
Glossary of terms
Here are some clarifications on the concepts and terms used in this report. The
descriptions of these terms define the actual concepts that are interpreted in this
2. Culture: Is a social pattern that has been passed down through generations in
society. It decides what's important and what's not, what's right and wrong,
what's acceptable and what's not. Values, conventions, and customs, whether
explicit and implicit, are all part of the culture. Attitudes, beliefs, habits, and
3. Cultural diversity: The cultural diversity that exists in the world, society, and
regulations. The way an organization treats its employees, customers, and does
group within an organization, as well as the degree of success with which that
TABLE OF CONTENTS
ABSTRACT .................................................................................................................. 4
1. INTRODUCTION.................................................................................................... 5
1.1 BACKGROUND........................................................................................................ 5
2. METHODOLOGY ................................................................................................ 16
4. REFERENCES....................................................................................................... 30
4
Abstract
has caused a rise in conflicts among the workforces. Hence the purpose of this report is
to discuss on the management of cross-culture and how the issues within these areas
can be reduced. This report provides some background information on cultural diversity
and its impact on global organizations. The value and relevance of why the chosen
subject requires more research are discussed in this report. The problem will be defined,
1. Introduction
1.1 Background
Globalization has resulted in the world becoming more integrated, organizations now
have greater opportunity to expand globally. As the global economy has widened, so
consisting of a diversification of ethnical and cultural parts since they are operating in
several different countries. As a result of cultural diversity, there has been a rise in
has prompted firms to pay more attention to how they develop competency in this area.
Managers may presume that employees in the same worldwide organization will
behave the same way, even if the employees come from various countries. When
communicating with international clients, national culture is by far more crucial than it
was when interacting with colleagues within the firm (Adler & Gundersen, 2008, p.
2001). The way people think and act is undeniably influenced by culture. Organizations
(Adler & Gundersen, 2008, p. 8). Low performance and organizational inefficiency
Companies all over the world are always pushed to rethink their strategy and
keep their workers up to date in order to stay up with the constant shift in demand.
properly, it's more likely that you won't reap the benefits and won't be as efficient as
you could be (Isaac, 2003). This underlines the need of understanding cultural diversity
and using labor force variations as a competitive advantage. As a result, any company's
Cultural transitions around the world have become a common occurrence in this age of
assess whether globalization has resulted in greater cultural convergence than before
nation-states, and technologies to a degree never seen before - in such a way that
individuals, corporations, and nation-states may reach around the world further, deeper,
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and cheaper than ever before" (Flynn, 2009 p. 1). It has been stated that globalization
modifies the norms and values in any culture as societies transition from a traditional
will result in a rise in diverse workforce which can be viewed as an advantage for firms
In this international age of business where firms operate in many different parts of the
cultures. Potential managers should seek to adapt to the different cultural practices of
the host country to better manage their workforce and achieve productivity.
Here are some examples of how people management takes place in different
countries:
1. Argentina
2. Australia
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The Aussies want their boss to join them in a healthy disrespect for rules and
formalism, to lapse into broad speech and cuss a bit, to be affable and ironic at
3. Austria
4. Brazil
5. Canada
Canadian managers use a low-key and humorous tone as a tool for motivating
6. China
7. Czech Republic
8. Denmark
9. Estonia
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10. Finland
Finnish bosses can be cold, terse, and factual in one mode, then switch to a
11. Germany
12. Greece
Hispanic American managers tend to soften the delivery and the message to
15. Hungary
16. India
The language of the Indian manager emphasizes the collective nature of the
17. Indonesia
softness.
18. Iran
Iranian managers offer help where needed, have bottom line focus, and give
19. Ireland
Irish leaders apply a poetic touch to their dialogue and command allegiance
reasonable proposals.
20. Japan
Japanese managers rarely issue clear orders. They only hint at what has to be
done.
21. Kazakhstan
Kazakh leaders preach a more relaxed form of Islam than the others and their
22. Korea
Korean managers are authoritarian and direct and "beat about the bush much
23. Latvia
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Latvian managers address staff in a cool, measured manner. They like to mix
24. Lithuania
25. Netherlands
26. Norway
The energetic and distinctive tones of the Norwegian language serve to link
27. Pakistan
The language of the Pakistani manager emphasizes the collective nature of the
28. Poland
Managers may use facts and figures to motivate, but the key to the Polish
29. Portugal
30. Russia
Muslim. The language used will make frequent references to Allah and align
32. Scotland
manner. Their speech is direct and crisp, and orders are clear.
33. Serbia
34. Slovakia
35. Slovenia
Slovenian managers tone down emotion and substitute logic and reasoning.
36. Spain
and cajole.
38. Sweden
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The Swedish language tends to stratify managers at the same level as their
singular pronoun).
39. Switzerland
Swiss managers address their subordinates in four different languages, but all
40. Thailand
Thai leaders are expected to be kind to subordinates and will command their
41. Turkey
Turkish managers are strong and decisive when dealing with their own
people.
42. Ukraine
In the UK, particularly England, managers use friendly small talk, humor,
to work.
the figures responsible for the nation's speedy development and commercial
services.
45. Uzbekistan
46. Vietnam
management style.
47. Wales
Managers address their staff in a folksy way without any trace of superior airs.
Also, there is generally a lot of human contact between Welsh managers and
their staff.
To measure the potential effects of culture on the behaviour of said culture’s firms
and managers, Geert Hofstede (2001), while working for IBM in the late 70s and
early 80s, identified six key dimensions of culture that could be measured through use
which each society values history, heritage, and tradition whether it prefers to uphold
traditional values and is more resistant to new ideas and technology (Long Term
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Orientation) or whether it is more fluid, less focused on the past and more open to
Power Distance (High vs Low) which measures how well the society in
important than individualist beliefs and desires. Individualist societies tend to value
each society is comfortable dealing with risk, uncertainty, and ambiguity societies
with high degrees of uncertainty avoidance tend to be highly regulated and value
careful planning and structure, while societies with low degrees of uncertainty
avoidance tend to be more pragmatic and accept change and risk as factors of life.
‘masculine’ cultures, gender roles are highly differentiated and society as a whole
‘feminine’ societies gender roles are less starkly defined and more equal, and society
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tends to place higher values on relationship building, modesty and group harmony
2. Methodology
the management.
building at this scale is not simple and there are numerous hurdles that the
multiple strategies and understanding how these strategies work the main goal is.
environment.
environments.
Here is the case study for SWOT analysis of Telenor ASA, a Norwegian majority
The culture at Telenor is top-down, the top employees establish the culture of
the organization. The top-level employees take good care while performing, because
it will have to be followed by the subordinates. Things are properly informed. There is
the culture of Telenor is formal and is its flexible and it is suitable for their employees
and there are formal and some official rules are there which are to be followed for the
betterment of the organization and the HR department of the Telenor hires the
appropriate and good employees and they are skilled person they do their job well.
Roles and responsibilities are clearly defined at the time of joining the
organization; employees are selected against defined criteria. Roles can be added later
but employees have a fair idea about their job responsibilities from the beginning.
• STRENGTH
- Multinational company
company culture. It has built a culture among distributors & dealers where the
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dealers not only promote the company's products but also invest in training the
sales team to explain to the customer how he/she can extract the maximum
Over the years telenor has invested in building a strong brand portfolio. The
SWOT analysis of telenor just underlines this fact. This brand portfolio can be
categories.
- Reliable suppliers
It has a strong base of reliable suppliers of raw material thus enabling the
programs
employees resulting in a workforce that is not only highly skilled but also
- Financial strength
Being a multinational company, Telenor has a good fund to compete with its
• WEAKNESS
Making the company raise more capital to invest in the channel. This can
Telenor is going to continue their good service, then its customer is going to
be increased.
The current asset ratio and liquid asset ratios suggest that the company can use
The company has not been able to tackle the challenges presented by the new
entrants in the segment and has lost small market share in the niche categories.
Telenor must build internal feedback mechanisms directly from the sales team
• OPPORTUNITIES
market.
After years of recession and slow growth rate in the industry, is an opportunity
for Telenor to capture new customers and increase its market share.
The new opportunities will create a level playing field for all the players in the
advantage in new technology and gain market share in the new product
category.
• THREATS
- Political instability
- Public pay phones and calling cards usage where network is not
available
Moreover, people can even shift to another network that has coverage in those
areas.
Over the years the company has developed numerous products but those are
new products is not regular thus leading to high and low swings in the sales
Here is an example of the case study for Michael E. Porter’s Five Forces of
internationally through strategies that account for the external factors in the industry
These issues are based on external factors that represent the degree of
competitive rivalry in the industry, the bargaining power of customers or buyers, the
bargaining power of suppliers, the threat of substitution, and the threat of new
entrants. In this Five Forces analysis of McDonald’s, the forces are mainly within the
fast-food restaurant industry. As the leading restaurant chain business in the world,
with competition in different markets worldwide. This status shows that McDonald’s
strategic direction is appropriate to the external factors, such as the ones identified in
McDonald’s Corporation ensures that its strategies are appropriate to combat external
forces. The company faces pressure from various competitors, including large
The fast-food restaurant is one of the most competitive businesses today. With so
many multinationals as well as local restaurants that have almost the same menus, the
competition is becoming intense with each player in the industry striving for market
share. There is a certain level of saturation that has developed. The competitors of
McDonald’s are other fast-food restaurants such as Wendy’s, Burger King, Johnny
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Rockets, and it could be local restaurants in some countries as well. Each player is
customers. The increase in the number of competitors has made competitive rivalry
The raw materials such as chicken and potatoes that McDonald’s uses for its products
are available through many suppliers. Also, the orders of McDonald’s are massive on
a routine basis. There are many suppliers that are willing to become its suppliers.
to force it to increase its prices. McDonald’s can easily switch suppliers with little
switching cost. Therefore, the bargaining power of the suppliers is a weak force for
McDonald’s.
The buyers of McDonald’s have many options available in the market today. They
can easily switch from one restaurant to another without any switching cost if they are
unsatisfied. Loyal customers of fast-food restaurants are decreasing day by day with
so many competitors. The buyers can easily protest any price increases by
McDonald’s and shift to other competitors. (Gregory, 2017). This puts the buyers in a
The substitutes of meals of McDonald’s are meals of other slightly different fast-food
restaurants such as KFC, Pizza Hut and it could be home cooked meals. Bakery
products are also substituting of McDonald’s products. Most of these substitutes are
competitive in terms of customer satisfaction and quality. Switching to them does not
have any associated switching costs. Also, many health concerns have been raised
substitutes (Sweet, 2014). For this reason, the threat of substitutes is a strong force
against McDonald’s.
On the international level, the threat of new entrants is a weak force as there are many
entry barriers. The entrant would have to create many outlets throughout the world
which requires a massive capital investment and time, quickly establish economies of
scale to become profitable, gain access to suppliers of meat and other raw materials
and carry out extensive marketing to create awareness among customers in order to
entrants to step in and produce competition. However, the same threat is higher on a
scale where the investment is not high, two or three outlets are enough, and
economies of scale are easily established. These local outlets can give competition to
on handmade or vintage items and craft supplies. These items fall under a wide range
of categories, including jewelry, bags, clothing, home décor and furniture, toys, art, as
well as craft supplies and tools. All vintage items must be at least 20 years old. Most
sellers are women, who tend to be college-educated and in their twenties and thirties.
Here are the graphs that show Distribution of Etsy Inc. employees worldwide
60%
47.7%
50% 45.3%
Share of employees
40%
30%
20%
10% 7%
0%
Female Male Other (self-reported) / not
declared
25
70% 63%
60%
Share of employees
50%
40%
30%
17.5%
20%
10% 3.8% 5.9% 6.1% 3.4%
0.1%
0%
White Asian Not Black or Hispanic Two or American
declared African more races Indian or
American Alaskan
Native
service owned by Facebook, Inc. Since Facebook is one of the most widely used
social medias, there are employees working for the company from across the world.
Here are the graphs that show Distribution of Facebook employees worldwide
Male Female
80%
69% 68% 67%
70% 65% 63.7% 63.1% 63%
Share of employees
60%
50%
35% 36.3% 36.9% 37%
40% 32% 33%
31%
30%
20%
10%
0%
2014 2015 2016 2017 2018 2019 2020
Male Female
80% 75.9%
70% 65.8%
58.5%
60%
Share of employees
50%
41.5%
40% 34.2%
30% 24.1%
20%
10%
0%
Tech Senior level Non-technical
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3. Discussion
The diversity of the varying nations and cultures creates a noticeable clash and
misunderstandings. Each culture has their own variance of these factors, time
of culture.
business cultures and ethics they must incorporate their own culture to not only
streamline but homogenize and bring together various groups of differing cultures to
adhere to the corporate culture. This is already shown in the case study conducted
upon Telenor ASA which is one of the world’s largest telecommunication companies.
In the case study, it is shown that Telenor ASA manages to keep its culturally and
nationally diverse workforce productive by being a company that has both a formal
and flexible corporate culture. This means that there is a strict formality in how things
are done and has a more established power distance in terms of clearly defined roles
competition and ambition which is shown in the way Telenor hires competent and
skilled individuals who are the best fit for their jobs.
By introducing a defined corporate culture with its own rules, regulations, and
standards it gives people from varying cultures a single unifying concept to follow.
This means that disregarding all other personal cultures and preferences, those who
work for and adopt company culture embrace the corporate culture, thus making them
apart of its ‘family’. This not only strengthens the relationships between coworkers
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but also helps to bridge any difference in personal cultures, which means that no
matter where one goes or who they meet, all adhere to the same corporate culture.
That helps to streamline and make not only communication but work ethics to
function on the same stream. For instance, this study by (Lauring, 2011) shows that
Showcasing that the above points hold merit and validity as national differences often
get in the way of communication but by having a corporate culture it helps to unite
Another notable thing from the case study is that it is a very top-down method
of leadership and culture. With clear channels of communication and proper, clearly
sarcasm and other figures of speech are thrown aside for simple and clear-cut
communication with local people as shown in this study by (G, 2018), it defines the
varied labour forces as best performing when companies help to clearly communicate
understanding the goals and aspirations of their workforce can also determine the
culture. It varies from country to country, but in general by having a company that
grades an individual based on their personal aspirations can greatly help find the right
4. Conclusion
It’s determined that through better understanding and by establishing one’s own
corporate culture to be the standard and having employees follow it closely. It helps to
also eliminates the tendency of varied time orientation, and by having a formality in
manner.
having a system already understood by the company to better police and manage it.
Thus, with organizational culture, it is something that is flexible like Telenor ASA
helps to be inclusive of different cultures while also keeping to formality that means
that though it can be flexible and inclusive it has a formal grade which helps with
Which means that to best manage people from different backgrounds and
benefit the organization with their goals. As, cross cultural management is becoming
more significant with the rise of multinational companies where effective integration
5. BIBLIOGRAPHY
• Adam Kasi (2017, September 9). Porter Five Forces Analysis of McDonald’s.
of-mcdonalds/
https://en.wikipedia.org/wiki/Du-reformen
https://en.wikipedia.org/wiki/Telenor
10.5430/ijba.v4n2p39.
http://fernfortuniversity.com/term-papers/swot/1433/1187-telenor.php
http://www.halogensoftware.com/blog/the-business-of-culture-how-culture-
affects-management-around-the-world
https://www.ipl.org/essay/Swot-Analysis-Of-Multinational-Company-
P3EU4KKRCED6
• Kathleen Elkins (2015, March 5). These fascinating diagrams reveal how to
https://www.businessinsider.com/how-to-manage-people-in-other-countries-
2015-3
five-forces-analysis-porters-model