MULTINATIONAL FIRMS CROSS CULTURAL ISSUES PROF. R. D. JOSHI.

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MULTINATIONAL FIRMS CROSS CULTURAL ISSUES PROF. R. D. JOSHI

CULTURE Definition Key elements of ‘Culture’: Values, Ideas, Patterns of Reactions, Symbolic Systems Cultural impact on economic performance

M. N. C s & CULTURAL ISSUES Diversity of cultures Management of complexities National culture Vs Corporate culture Impact of National & Corporate Culture on organisational behaviours and performance Issues for decision

POLYCENTRIC CORPORATE CULTURE (I) Unassimilated diversity Decentralised decision making Example of I.B.M. (Study of Hofstede of IBM in 50 countries)

POLYCENTRIC CORPORATE CULTURE (II) Advantages 1.Benefits of specialisation 2.Benefits of flexibility 3.Benefits of creativity 4.Benefits of problem solving Disadvantages 1.Internal collaboration difficult 2.Diversity threatens organisational integration

GLOBAL CORPORATE CULTURE (I) Replacing home country thinking/habits with corporate values Emphasis on integration rather than diversity Focus on company as a whole Examples:Hewlett Packard Digital Equipment

GLOBAL CORPORATE CULTURE (II) Advantages 1.Benefits of communication 2.Benefits of reliability 3.Benefits of pace 4.Benefits of identification

GEOCENTRIC CORPORATE CULTURE Third alternative A new transnational culture Towards increasing collaboration

H. R. M. ROLE Increasing understanding of intercultural issues Fostering intercultural relations Encouraging positive interactions amongst international colleagues Strengthening global mindset & corporate behaviour through: ° Personal Meetings ° Socialisation Process ° Management Education ° International Seminars

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