culture in business at the global level

culture in business

The criticality of culture in business, especially at the global level cannot be overstated. The articulation of culture through the human resource management perspective offers a profound foundation for defining the underlying loopholes and opportunities. Culture regards the beliefs and behaviors of a particular community. The development of products, businesses, and industries has to be in tandem with the traditions of the targeted clientele for different reasons (Festing et al., 2013). Most profoundly, a society chooses its preferred commodities, expenditure patterns, and tastes and preferences depending on the existing way of life. As such, it is imperative to consider essential aspects such as religion, cultural norms, and the values that define a particular community. The move comes in handy the most when investors choose a far off investment destination. Secondly, businesses increasingly appreciate the relevance of corporate social responsibility (CSR) in their practices. The inclination to increase the level of profitability and market share cannot compromise the wellbeing of the consumers and the location where the business operates. Culture is a critical consideration for developing effective CSR. The management of a company can assist the community depending on prevailing needs and interests (Edwards & Kuruvilla, 2005). Respecting the way if the life of the society where the business operates is an integral part of the CSR. It implies a willingness to not only demonstrate humanity but also engage with the cultural dimension of a particular geographical environment.
The workforce is the primary facilitator of CSR and IHRM. The alignment to the demands of the global consumer base and markets commences with building a firm business image. Workers reflect the identity and philosophy of the company. It is the role of the HRM department of every company to define the ideal image. It commences with building a highly motivated workforce that is willing to confront the changes and demands of the international markets. Businesses under the international markets have to constantly negotiate preferred terms of operation. Cross-national discussion present new opportunities for business expansions particularly through the exchange of ideas. As such, the workforce needs to anticipate underlying inconsistencies and greater demands (Story et al., 2014). The fact that the international markets are increasingly adopting flexibility implies that businesses can increasingly negotiate relevant incentives such as better pricing, more sales, and fair trade practices. The role of the IHRM also articulates sales interaction between multiple countries. Businesses delve into the expected implications on the consumers both locally and internationally. It is imperative to accommodate diversity by defining possible fixed requirements and negotiate possible barriers for current and future businesses.

The fundamental functions of HRM

The fundamental functions of HRM come in handy in creating an international philosophy for articulating the arising demands. Businesses have to reconcile Parent Country Nationals (PCNs) and Third Country Nationals (TNCs). Firstly, it is imperative to hire persons that align with the new demands. While business avoids discriminating people on the basis on an ethnic and geographical basis, creating a workforce that fits with the global standards and opportunities cannot be avoided. Besides, it is often a perfect opportunity to create a highly diverse team that align with the underlying demands (Aycan, 2005). For instance, a company that seeks to set new operations in a predominantly Islam society may find it necessary to recruit some Islamic workers. The move does not rule other critical requirements such as educational and career qualifications. However, culture arises a new set of requirement for the workforce for different reasons. Firstly, those that fit with the existing ways of life will make it easier and cheaper to offer the required services. While a business can invest in researching the underlying tastes and preferences, engaging directly with the new community promotes authenticity and induces sustainability.
The hiring process aligns with remuneration and motivation techniques. The HRM department has to inspire the international workforce differently and dynamically compare to the local teams. Compensations ought to be commensurate with the new demands. Firstly, building the global image of the business has to be part of value creation. It should be rewarded accordingly to not only motivate the workers but also raise the bar on appreciating the cultural dimension of business. On the other hand, employees stand to benefit from the new dimension of international operations particularly through greater exposure. Interacting with investors and consumers in the global business setup nurtures new skills revolving around communication, negotiation, and innovation. It is upon the individual worker to define the set of skills that works for them. Secondly, the new culture of the business also redefines training development. The business and the workforce anticipate new challenges and opportunities (Edwards & Kuruvilla, 2005). Training is the best strategy for preparing and confronting new challenges. It is also the foundation for innovation given that the workforce will be facilitated by individuals and institutions from the global perspective.

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Important theories and approaches to the Cultural Context of IHRM

Most of the theoretical positions regarding IHEM revolve around the integration of cultures in global environments. The underlying changes manifest both within the organization and at the market and industry levels. Internally, a business no longer relates to its customs and philosophy alone. On the contrary, it has to reconcile the attitudes and feelings of a highly dynamic workforce (Fang, 2010). The development commences with structuring the workforce in a way that accommodates the existing demands. One of the immediate actions includes hiring a dynamic workforce that is in tandem with the racial and cultural modification of the physical environment of the business. The management embarks on hiring a different category of the workforce that fits with the new aspirations. It can be in the form of setting limits for the number of workers from the local population, training on new cultural frameworks, and aligning with the legal mechanizations in the new global environment. On the other hand, the market also defines new possibilities for the organization while articulating the limitations and opportunities of the international markets (Edwards & Kuruvilla, 2005). A business has to conform to new patterns regarding the production and distribution of commodities. The cultural connotation refers to meeting the expectations of the people. Some of the key considerations include morality, environmental management, and aligning with the prevailing sociopolitical restrictions.
Different scholars and philosophies contextualize the Cultural context of IHRM. The foundation and relevance of cultures are one of the primary issues of concern. The authors suggest that the traditions surpass geographical limitations especially due to the criticality of the thinking process. People define the appropriateness of certain products or practices primarily depending on their thinking. As such, two critical possibilities come in handy. Firstly, individuals and organizations can shift to changing the mindset of people regarding certain issues or commodities (Janssens & Steyaert, 2012). The move underscores the essence of product promotion which commences with introducing a new product and proving its worthwhileness in filling a particular gap. Succeeding in changing the thinking of the society rests with being authentic and articulate. The prospective consumers require to relate with methods and mechanics that define a particular commodity. Secondly, businesses can rely on the thinking of the people, particularly prospective consumers to define preferable products or methods of operating.
Feelings and reactions also define the foundations of the cultural context of IHRM. People primarily consume various commodities to gain satisfaction. Tastes and preferences do not necessarily have to do with the affordability and or quality of the productions. On the contrary, appropriateness is also a critical factor and manifests in multiple ways. Firstly, people often trade satisfaction for ethics especially in a highly socially responsive environment (Aycan, 2005). The situation manifests with both the workforce and the consumers. Employees prefer to work in an environment that considers their feelings. They can trade higher remuneration for peace of mind. On the other hand, consumers tend to manifest sensitivity to business operations and products (Edwards & Kuruvilla, 2005). As such, the organization shave to strike the balance between being competitive and demonstrating sensitivity. Adopting highly personalized techniques presents the most ideal opportunities. Rather than using fixed methods, it is necessary to be flexible with the patters of operating and selling to the clients.
Geert Hofstede is one of the most relevant theorists regarding culture in international organizations. Hofstede is critical about the dramatic changes in the global economy and perceives culture and the biggest unifying factor (De Mooij & Hofstede, 2010). The theorist is cognizant that no universal management procedure can exist in the present world of business. On the contrary, organizations have to settle for multifaceted and flexible leadership styles. Various incentives come in handy pertaining to the growing overemphasis of cultural integration. Firstly, it is necessary to invest in the workforce as much as other essential elements such as capital and product promotion. As reiterated in the description of the international human resource, workers are the image of the business. Their actions determine various outcomes, including the presence of the multiple commodities in the local and international markets. Workers relate to the individual needs in the day-to-day running of the business (Orr & Hauser, 2008). They are the embodiment of the image of the organization given their direct interaction with the clientele. The same way the workers help in structuring the operational framework of the organization come in handy in setting a new cultural standard. For instance, the employees usually engage the existing and prospective clients to discover the prevailing tastes and preferences (Hofstede, 2011). Such actions also align with the discovery of possible gaps in information so that necessary actions can be taken. It is upon the organization to define possible areas of improvement and allocate necessary resources.
The cultural dimension of the international business is also a profound foundation for addressing critical universal issues such as inequality. A business can confront the ailing of a particular community of the globe by changing the narrative about internal business activities. It commences with setting a good example, by creating a dynamic and integrated workforce. It is necessary to balance the number of workers based on critical indicators such as age, race and geographical attributes (Aycan, 2005). The move targets spreading resources and opportunities in a society defined by isolation and discrimination. Addressing inequality is most effective in societies with major imbalances regarding income distribution. For instance, a business can offer more opportunities for women in areas that are adversely affected by stereotypes against the female gender. The move will create a new narrative that will tend to be adopted by other players, both locally n internationally. The confrontation of inequality aligns with the power imbalances that inhibits most societies across the globe (Delbridge, Hauptmeier & Sengupta, 2011). It is noted that people relate with certain hierarchies that relate to social or financial might. The elites will tend to suppress the poor or the powerless leading to inequality. A business has to confront such contentions when it engages with foreign working environments. It is necessary to address the prevailing wrongs while accommodating positive cultural aspects such as business ethics, addressing poverty and embracing diversity.
Power imbalances also align with individualism and collectivism. The managerial shift into the international business environment manifests in multiple ways including the way leaders handle the workforce. Those that align with individualism tend to be discrete about the day-to-day operations of the business (Janssens & Steyaert, 2012). The underlying cultural implications regard the tendency to disassociate with the ways of life of the people in the immediate external environment. As such, succeeding in the international environments call for collectivism to facilitate a seamless sharing of information and connectivity with the stakeholders. The development redefines the approach to HRM in different ways. Firstly, the international perspective calls for the restructuring of the workforce into various groups for easier allocation of responsibilities. It is also the role of the HRM at the international level to address femininity and masculinity. The physicality and gender of the employees can be ignored given the sensitivity of inequality and discrimination. Having equitable opportunities for men and women offers realistic solutions. Organizations have to employ workers based on their competence and the threshold for women and men.
Sustainability is also a critical concern for the HRM departments running multinationals. Building a firm image rests with constantly aligning with the new demands in the market and the operating environment (Festing et al., 2013). The cultural aspects of the IHRM are only helpful to the business if the organization articulate the underlying opportunities. Firstly, it is imperative to engage the new traditions that define a new international market. It can be in the form of employing some of the residents of a particular territory, communicating the language understandable to all the players relevant to the organization and being social responsive especially to the most troubled groups.
The cultural context of international human resource management (IHRM) contextualizes the underlying possibilities for individuals and companies operating as multinationals. The essence of culture in business, especially at the international level cannot be overstated. The articulation of culture through the human resource management perspective defines the underlying loopholes and opportunities. Culture regards the beliefs and behaviours of a particular community. The essential functions of HRM create an international philosophy for articulating the arising demands. Firstly, it is imperative to hire persons that align with the new demands. Hofstede perceives culture and the biggest unifying factor. The theorist is conscious that no universal management procedure can exist in the present world of business. The cultural dimension of the international business is an insightful foundation for addressing critical universal issues such as inequality. It is noted that a business can confront the ailing of a particular community of the globe by changing the narrative about internal business activities.

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