International Business

Global marketing indicates the integrated and coordinated marketing activities across many different markets. Taking into account the various conditions on which markets vary and depend, appropriate marketing strategies should be devised and adopted. Like, some countries prevent foreign firms from entering Into Its market space through protective legislation. Protectionism on the long run results in inefficiency of local firms as it is inept towards competition from foreign firms and other technological advancements. It also increases the living costs and protects Inefficient domestic firms.

The decision of a firm to compete Internationally is strategic; it will have an effect on the firm, Including Its management and operations locally. The decision of a firm to compete in foreign markets has many reasons. Some firms go abroad as the result of potential opportunities to exploit the market and to grow globally. And for some It Is a policy driven decision to globalize and to take advantage by pressuring competitors. 1 Segmentation Firms that serve global markets can be segregated into several clusters based on their similarities. Each such cluster Is termed as a segment.

Segmentation helps the firms to serve the markets in an Improved way. Markets can be segmented Into nine categories, but the most common method of segmentation is on the basis of individual characteristics, which include the behavioral, cryptographic, and demographic segmentations. The basis of behavioral segmentation is the general behavioral aspects of the customers. Demographic segmentation considers the factors like age, culture, income, education and gender. Cryptographic segmentation takes into account: beliefs, values, attitudes, personalities, opinions, lifestyles and so .

Market positioning The next step in the marketing process is, the firms should position their product in the global market. Product positioning is the process of creating a favorable image of the product against the competitor’s products. In global markets product positioning Is categorized as high-tech or high-touch positioning. The classification of high-tech and high-touch products. One challenge that firms face is to make a trade-off between adjusting their products to the specific demands of a country and gaining ‘OFF image and cost savings. 3. International product policy

Some thinkers of the industry tend to draw a distinction between conventional products and services, stressing on service characteristics such as heterogeneity, inseparability from consumption, intangibility, and permissibility. Typically, products are composed of some service component like, documentation, a warranty, and distribution. These service components are an integral part of the product and its positioning. Thus, it is important to consider the findings of marketing research and determine customer’s desires, motives, and expectations in buying a product. Firms have a choice in marketing their products across markets.

Many a times, firms opt for a strategy which involves customization, through which the firm introduces a unique product in each country, believing that tastes differ so much between countries that it is necessary to create a new product for each market. Standardization proposes the marketing of one global product, with the belief that the same product can be sold in different countries without significant changes. Finally, in most cases firms will go for some kind of adaptation. Here, when moving a product between markets minor modifications are made to the product. 4.

International pricing decisions Pricing is the process of ascertaining the value for the product or service that will be offered for sale. In international markets, making pricing decisions is entangled in difficulties as it involves trade barriers, multiple currencies, additional cost considerations, and longer distribution channels. Before establishing the prices, the firm must know its target market well because when the firm is clear about the market it is serving, then it can determine the price appropriately. The pricing policy must be consistent with the firms overall objectives.

Some common pricing objectives re: profit, return on investment, survival, market share, status quo, and product quality. The strategies for international pricing can be classified into the following three types:; Market penetration: It is the technique of selling a new product at a lower price than the current market price. Market holding: It is a strategy to maintain buy orders in order to maintain stability in a downward trend. ; Market skimming: It is a pricing strategy where price of the goods are set high initially to skim the revenue from the market layer by layer.

The factors that influence pricing decisions re inflation, devaluation and revaluation, nature of product or industry and competitive behavior, market demand, and transfer pricing. 5. International advertising International advertising is usually associated with using the same brand name all over the world. However, a firm can use different brand names for historic reasons. Brands. A firm may find it unfavorable to change those names as these local brands have their own distinctive market.

Therefore, the company may want to come-up with a certain advertising approach or theme that has been developed as a result of extensive global customer research. Global advertising themes are advisable for marketing across the world with customers having similar tastes. The purpose of international advertising is to reach and communicate to target audiences in more than one country. The target audience differs from country to country in terms of the response towards humor or emotional appeals, perception or interpretation of symbols and stimuli and level of literacy.

Standardization is required for products by some firms. Standardization helps to achieve economies of scale and a consistent image can be established across markets. Demonstration also assists in utilizing creative talent across markets, and facilitates good ideas to be transplanted from one market to other. International advertising can be thought of as communication process that transpires in multiple cultures that vary in terms of communication styles, values, and consumption patterns. International advertising is a business activity and not Just a communication process.

It involves advertisers and advertising agencies that create ads and buy media in different countries. International advertising is also reckoned as a major force that mirrors both social values, and reportages certain values worldwide. 6. International promotion and distribution Distribution of goods from manufacturer to the end user is an important aspect of business. Companies have their own ways of distribution. Some companies directly perform the distribution service by contacting others whereas a few companies take help from other companies who perform the distribution services.

The distribution services include:; The purchase of goods. ; The assembly of an attractive assortment of goods. ; Holding stocks. ; Promoting sale of goods to the customer. ; The physical Q. How can managers in international companies adjust to the ethical factors influencing countries? Is it possible to establish international ethical codes? Briefly explain? Answer: Ethics can be defined as the evaluation of moral values, principles, and standards of human conduct and its application in daily life to determine acceptable human behavior.

Business ethics pertains to the application of ethics to business, and is a matter of concern in the corporate world. Business ethics is almost similar to the generally accepted norms and principles. Behavior that is considered unethical and immoral n society, for example dishonesty, applies to business as well. Managers are influenced by three factors affecting ethical values. These factors have unique value systems that have varying degrees of control over managers. In religious teachings, religions agree on the fundamental principles and ethics.

All major religions preach the need for high ethical standards, an orderly social system, and stress on social responsibility as contributing factors to general well-being. Culture – Culture refers to a set of values and standards that defines acceptable behavior passed on to generations. These values and standards are important because the code of conduct of people reflects on the culture they belong to. Civilization is the collective experience that people have passed on through three distinct phases: the hunting and gathering phase, agriculture phase, and the industrial phase.

These phases reflect the changing economic and social arrangements in human history. Law – Law refers to the rules of conduct, approved by the legal system of a country or state that guides human behavior. Laws change and evolve with emerging and changing issues. Every organization is expected to abide the law, but in the pursuit of refit, laws are frequently violated. The most common breach of law in business is tax evasion, producing inferior quality goods, and disregard for environmental protection laws.

Ethics is significant in all areas of business and plays an important role in ensuring a successful business. The role of business ethics is evident from the conception of an idea to the sale of a product. In an organization, every division such as sales and marketing, customer service, finance, and accounting and taxation has to follow certain ethics. Public image – In order to gain public confidence and respect, organizations must ascertain that they are honest in their transactions. The services or products of a business affect the lives of thousands of people.

It is important for the top management to impart high ethical standards to their employees, who develop these services or products. A company that is ethically and socially responsible has a better public image. People tend to favor the products and services of such organizations. Investors’ trust is Just as important as public image for any business. A company that practices good ethical creates a positive impression among its stakeholders. Management’s credibility with employees – Common goals and values are developed when employees feel that the management is ethical and genuine.

Management’s credibility with employees and the public are intertwined. Employees feel proud to be a part of an organization that is respected by the public. Generous compensations and effective business strategies do not always guarantee employee loyalty; organization ethics is equally significant. Thus, companies benefit from being ethical because they attract and retain good and loyal employees. Interests of the organization, its employees, and the public. Ethical decisions take not account various social, economic and ethical factors.

Profit minimization – Companies that emphasis on ethical conduct are successful in the long run, even though they lose money in the short run. Hence, a business that is inspired by ethics is a profitable business. Costs of audit and investigation are lower in an ethical company. Protection of society – In the absence of proper enforcement, organizations are responsible to practice ethics and ensure mechanisms to prevent unlawful events. Thus, by propagating ethical values, a business organization can save government resources and protect the society from exploitation. Most countries have similar ethical values, but are practiced differently.

This section deals with the way individuals in different countries approach ethical issues, and their ethically acceptable behavior. With the rise in global firms, issues related to ethical values and traditions become more common. These ethical issues create complications to Multi-National Companies (Macs) while dealing with other countries for business. Hence, many companies have formulated well-designed codes of conduct to help their employees. Two of the most prominent issues that managers in Macs operating in foreign entries face are bribery and corruption and worker compensation.

Bribery and corruption – Bribery can be defined as the act of offering, accepting, or soliciting something of value for the purpose of influencing the action of officials in the discharge of their duties. Corruption is the abuse of public office for personal gain. The issue arises when there are differences in perception in different countries. For example, in the Middle East, it is perfectly acceptable to offer an official a gift. In Britain it is considered as an attempt to bribe the official, and hence, considered unlawful.

Worker compensation – Businesses invest in production facilities abroad because of the availability of low-cost labor, which enables them to offer goods and services at a lower price than their competitors. The issue arises when workers are exploited and are underpaid compared to the workers in the parent country who are paid more for the same Job. The disparity arises due to the differences in the regulatory standards in the two countries. Earlier, we believed that ethics is a prerogative of individuals, but now this perception has immensely changed.

Many companies use management techniques o encourage ethical behavior at an organizational level. Code of conduct for Macs behavior. These rules prescribe the duties and limitations of a manager. The top management must communicate the code of conduct to all members of the organization along with their commitment in enforcing the code. Some of the ethical requirements for international companies are as follows: ; Respect basic human rights. ; Minimize any negative impact on local economic policies. ; Maintain high standards of local political involvement. ; Transfer technology. Protect the environment. ; Protect the consumer. Employ labor practices that are not exploitative. When a manager of an international firm faces an ethical problem, certain models help in solving these ethical issues. Culture is a major factor which influences marketing decisions and practices in a foreign country. For example, in the middle-eastern countries the prior approval of the governing authorities should be taken if a firm plans to advertise a product related to women’s apparel, as showcasing some aspects of women clothing is considered immodest and immoral.

International Business and Ethics Bribery and corruption: Bribery can be defined as the act of offering, accepting, or Worker compensation: Businesses invest in production facilities abroad because of Managing ethics to encourage ethical behavior at an organizational level. Various techniques of managing ethics like practicing ethics at the top level management, special training on ethics, forming committees to oversee ethical issues, and defining and implementing code of ethics are illustrated in figure.

Figure: Techniques of Managing Ethics Top management:The senior management of a company must be committed to ensure that ethical standards are met. The chief executive of the company must not engage in business practices harmful to employees, or the society. The top management must focus on ethical practices while informing employees of their intention. Code of ethics: One of the best practices for ethics is creating a corporate ethical statement and communicating it within the company. Such practices enhance the company’s public image. Almost all Fortune 500 companies have such codes.

Ethics committee: There are ethics committees in many firms to help them deal with and advise on work related ethical issues. The Chief Executive Officer can head the committee that includes the Board of Directors. Such a committee answers employee aeries, helps the company to establish policies in uncertain areas, advises the Board on ethical issues, and oversees the enforcement of the code of ethics. Ethics hotlist: A company’s ethical hotlist helps its employees report any ethical issues they face at work. The ethics committee then investigates these issues.

Such hotlist calls are treated confidential, where the callers identity is protected to encourage employees to report on ethical issues. The act of reporting illegal, immoral, or illegitimate practices by former or current employees involving its employees is known as Whistle-blowing. Whistle-blowing is favorable to a company because employees can alert the management on possibly deviant behavior rather than reporting it to the media, which adversely affects the company. A case of whistle-blowing in Xerox corporation (a pioneer in copier machines), led its Chief Financial Officer to be fined $ 5. Million and banned from practicing accountancy after reports of falsified financial statements emerged. Ethics training programs: Most firms take ethics seriously and provide training for its familiar with the official policy on ethical issues. These programs demonstrate the use of these ethic policies in everyday decision-making. Ethics training is most effective when conducted by managers and when focused on work environment. Ethics and law: Both law and ethics focus on defining the perfect human behavior, but they are not the same.

Law is the governments attempt to formalism rightful behavior, but it is rarely possible to enforce written laws. It depends on individual or business ethics to reduce unlawful incidents. Ethical concepts are more complex than written rules since it deals with human dilemmas that go beyond the formal language of law. Legal rules seek to promote ethical behavior in companies. The following are some f the Acts which seek to ensure fair business practices in India: Foreign Exchange Management Act (FEM.) of 1999 – FEM. regulates the cross border movement of foreign and local currencies.

Companies Act of 1956 – Companies Act provides the complete legal framework for the formation, running, and winding up of a company. Consumer Protection Act of 1986 (CPA) – CPA provides and regulates the are essential framework for the protection of consumer rights. Essential Commodities Act of 1955 – This act defines the goods and services that for the people at all times and provides a legal framework for the uninterrupted supply f the same. National Differences in Ethics In the previous section we examined how ethics is significant in international ethics.

In this section, let us consider the differences in understanding ethics across countries. The differences in national cultures have an impact on the social and ethical practices of multinational firms. Cultural norms and values that usually influence business practices are attitudes towards women, minorities, bribery, and law. Religion and law are the key social factors that influence the type of ethical issues. In Macs, managers play a key role in managing ethics. While working in a foreign entry, you cannot expect a manager to have a comprehensive knowledge of that country’s culture and social factors that affect business.

Therefore, the international manager needs to acquire adequate knowledge of a country’s cultural, legal, and social scenarios to ascertain the important ethical issues and to manage these issues. The approaches to understand national differences in ethics are ethical relativism, ethical universalism, and ethical convergence. Let us discuss each of them in detail. Ethical relativism means that each country’s outlook on ethics must be considered valid and ethical. This implies that if bribery is not unethical in a foreign country, then it is acceptable for an NC to encourage bribery even if it is illegal in its home country.

Ethical relativism means that when a company deals with a host country for business, the international managers must follow the ethical norms of the host country. Another example is the attitude towards women employees in certain Arab countries. The attitude differs to a large extent compared to western countries. In Saudi Arabia, women employees are segregated from their male counterparts at the work place. All companies, Macs or local, must comply with these rules. The principle of ethical universalism states that there are basic moral principles that are valid across all cultural and political boundaries.

For example, all countries forbid unethical accounting practices and tax evasion. Both these principles have drawbacks when in international business. Ethical relativism is a convenient way to indulge in unethical practices with cultural differences as an excuse. The universal approach can be perceived as cultural imperialism, since business managers may regard business practices in some countries as inferior or immoral. Ethical convergence Ethical convergence is defined as the practice of a uniform system of ethical codes in different countries that are culturally and socially different.

Introduction

Until the mid to late 1980s, most mobile phones were so large that they were permanently installed in vehicles as car phones. Due to the advancement of miniaturization, the majority of the current mobile phones we used today are handheld units/ The world’s largest mobile phone manufacturers include Audiovox, BenQ-Siemens, High Tech Computer Corporation, Fujitsu, Kyocera, LG, Motorola, NEC, Nokia, Panasonic (Matsushita Electric), Pantech Curitel, Sagem, Samsung, Sanyo, Sharp, Siemens, SK Teletech, Sony Ericcson, T & A Alcatel and Toshiba. International business economics is a field of study which will assist in the analysis of how the production, distribution, and use of goods such as mobile phones in a global business community. Key players in the mobile phone manufacturing industry have had a significant impact on other countries due to the globalization of economic activities.

1-General Area of Interest

My general area of interest for this research project is mobile phone manufacturing. There are over 100 mobile phone manufacturers competing in the global market.

Having such a vast market will result in downward pressure on the average prices for mobile terminals as companies struggle to survive. Competition thus rests almost solely on price and, more specifically, price reduction. The key players in the mobile phone industry still command for approximately 75% of the total market share in the mobile phone industry. As such, these key players have a significant impact on setting prices and technological trends regarding mobile phones in many different countries across the globe.

2-Specific Topic

My specific topic will revolve around key players in the mobile phone manufacturing industry which are deemed to be the top 5 mobile phone manufacturing companies in terms of worldwide mobile terminal sales. These are Nokia, Motorola, Samsung, Siemens, and Sony Ericcson. Together, these top 5 mobile phone manufacturers command an estimated 73% of the market share on mobile phone manufacturing, with the other manufacturers lumped together as consisting of the remaining 27%. Nokia, in particular, ranks as the world’s largest mobile phone supplier and has begun shifting its mobile phone manufacturing from its U.S. -based factories in Texas to facilities in Korea, Mexico, India, and China. Even companies that rank among the top 5 have to struggle constantly to keep up with the highly competitive mobile phone manufacturing industry, such as Siemens. The German company has sold its mobile phone manufacturing unit to Taiwan’s BenQ since the mobile phone unit has been losing around 1 million euros a day and has then slipped in the global rankings of handset makers from fourth to fifth place.

In short, competition among handset makers boils down to a very fierce price competition which has to lead to a steady erosion of margins. As companies struggle to remain afloat and to cater to the demands of a highly fickle market, mobile phone manufacturers have begun transferring their productions to Asian countries such as China and India where production costs tend to be cheaper than in the West. The aim of this study primarily is to analyze the top 5 key players in mobile phone manufacturing in terms of their production and global business strategy to maintain their position in an extremely competitive market. The secondary objective for this research study is to examine the impact of these top 5 key players on the worldwide mobile phone industry as a whole, and on the economies of other nations, particularly those nations wherein which these companies have decided to transfer their production and operations.

3-Research Methodology

The research methodology to be used for this paper would be a descriptive, analytical approach. The research method would begin with data-gathering on the mobile phone industry as a whole – including its history, scope, recent trends, and forecasts. Then data on the top 5 key players in the mobile phone manufacturing industry will be gathered and analyzed to understand the profile of each company, their business strategy and market positioning, and their global impact in the mobile phone industry. These 5 companies will then be compared. Production and demand for their respective products will be examined, particularly with regard to their economic impact in identified areas or regions of production. 4-Source of Data The data to be gathered will be mostly from online sources. The websites of each of the top 5 key players will be studied, as well as critical analysis from other business and economic researchers who specialize in the mobile phone industry. In other words, related literature on the mobile phone industry, the top 5 key players, news articles reporting on developments and corporate decisions by these top 5 key players, and relevant studies regarding the market and economic trends will be used to assist in the analysis of my specific topic.

Reference

1. Press Releases. (June 2, 2003).
2. Gartner, [Online], Available from: <http://www.gartner. com/press_releases/pr2june2003b. html> [October 23, 2006]
3. Blau, John. (June 7, 2005), InfoWorld, [Online], Available from: <http://www. infoworld. com/article/05/06/07/HNsiemensbenq_1. html> [October 23, 2006].
4. Economics. (2006), Answers. com, [Online], Available from: <http://www. answers. com/topic/economics#after_ad1> [October 23, 2006]
5. Nokia v Microsoft – The fight for digital dominance. (November 21, 2002).
6. The Economist, [Online], Available from: <http://www. economist. com/displaystory. cfm? story_id=1454300> [October 23, 2006].
7. Mobile phone. (2006), Wikipedia.
8. The Free Encyclopedia, [Online], Available from: <http://en. wikipedia. org/wiki/Mobile_phone> [October 23, 2006].

This report is generated in order to identify and analyse the competencies for international managers, as our company is looking to train the managers for international assignments. I have not discussed hierarchical model in this report as for me it is understood that who is chosen for any international assignment should possess those competencies in default setting. Not all managers are able enough for international projects because of the deficiencies they have in the competencies discussed in hierarchical model. Those competencies are technical competencies, business competencies, knowledge management competencies, leadership competencies, social competencies and intrapersonal competencies.

Although for international managers few of these competencies needs to be outstanding and rest should be perfect. I have analyse and identified the areas where international managers needs to focus on, with the help of Leonard-Barton work I have tried to point out those key areas. Work and experience from many other authors and scholars have been taken into account. Cross cultural (C/C) competencies have been my main focus. How managers from different cultural background with different concepts and ideas can mould their thinking according to the culture they will be working in is discussed in this report.

I have also discussed my competencies and skills by taking guidance from CIPD think performer vision. The abilities that need to work on and those I already possess are all discussed in the personal list of competencies section. At the end of this report I have concluded the topic by highlighting the rapidly changing global world and business trends. My view is that if an organisation is in static position it can never progress and can not keep the pace in the competition. For an organization to keep the competitive edge it needs to be dynamic in its policies and strategies. With the changes for example technological changes, managers needs to develop their skills in order for the organization to maintain a strong grip on the market.

2. Introduction

Organizations change and organizations compete for the same resources, competencies, and customers. These are the cruel realities of management that cannot be neglected. This also means that the notion of strategy and strategic management cannot be neglected as an integral part of what managers do. Strategy is about affecting the overall activities of an organization in ways to make the organization a winner. Strategy is about survival in fierce competition. Expatriates who are unprepared for the challenges of an international assignment are likely to have difficulty adjusting abroad and are likely to experience culture shock (Oberg, 1960).

Poorly adjusted expatriates are, in turn, likely to perform poorly (Ones & Viswesvaran, 1997). While the cost of training, relocating, and compensating employees for expatriate assignments is estimated to be $80,000 U.S. for each expatriate (Dowling, Schuler, & Welch, 1996), the costs associated with expatriates’ failure to adjust and perform in foreign cultures have been estimated at well above twice that amount (Briscoe, 1995; Dowling, et al., 1996). In the international management literature, myriad lists of cross-cultural (C/C) competencies have been posited to be helpful for C/C adjustment (e.g., Hammer, Gudykunst, ; Wiseman, 1978).

Accordingly, extensive evidence exists for the effectiveness of C/C training as a means of providing these competencies and improving C/C adjustment (Black ; Mendenhall, 1990). As we look at the literature and feel like a lot has been learned up to date but still there are some areas of concern that needs some attention. So what are these areas? Well simple enough first of all if managers are trained to acquire C/C competencies, can they acquire those competencies through training and can everyone be equally trained for C/C competencies. Also, is it necessary that all C/C competencies are equally essential for C/C adjustment? Read about the business and society relationship

And last but not least if we go through all the C/C competencies listed in literature, we might not be sure about the validity of the guidelines for determining the contents for all those lists. While looking at the C/C competencies one should not neglect competencies within the organization culture an individual must have. So in order to identify the C/C we will look into the competencies that an individual must possess in order for the organization to maintain a competitive edge over their competitors. In order to find out the usefulness of competencies we first have to identify and analyse those competencies in order to make them effective.

3. Identification and Analysis of Competencies

The first two steps in formulating a competence-based strategy, identification and analysis, are treated together in this report for two reasons. First, the decision-making process of these two steps is different, more intuitive and less tangible, than the decision-making process in the last step of competence development. Second, there is a tendency that the third step is a matter for the human resource management (HRM) function of the firm alone, whereas the other two steps usually are the matter of top management. Even though if this tendency can be broken, HRM function certainly should be involved in the issues related to competence development as well as the other two issues.

The third reason is that we need to develop a lot more knowledge about how to apply theories and models related to, especially, organizational learning to competence development than what goes for the identification and analysis of competencies. In order to analyse the lets have a look at Leonard-Barton works(1995). Part of her starting point is that competencies should not be defined as static entities, since: ” organizations, like the people who populate them, have invested in knowledge building over the years and have developed particular skills, they still must continue to build and change those skills in response to changing environments” (Leonard-Barton, 1995, p. 17).

In other words, competencies need to be changed all the time. In order to do that, however, managers need at least two abilities: “they must 1) know how to manage the activities that create knowledge and 2) posses an understanding of exactly what constitutes a core capability” (Leonard-Barton, 1995, p. 4). As the time changes and in order to get the competitive edge, the knowledge and competencies that the firm is based on must also change as: “…even seemingly minor innovations that alter the architecture of a product can undermine the usefulness of deeply embedded knowledge” (Leonard-Barton, 1995, p. 17). Thus, innovation, even in the form of not creative destructive, is a key factor in rendering current core competencies obsolete. This phenomenon is called core rigidities by Leonard-Barton. She discusses four technical competencies as under.

3.1. Employee knowledge and skill. This is the most obvious dimension according to Leonard-Barton. This is because Leonard-Barton perceives organizations as knowledge. She writes that firms are knowledge as well as financial institutions and that they are repositories as well as wellsprings of knowledge. Expertise collects in employees’ heads and is embodied in technology, and this knowledge is the starting point of core competencies.

3.2. Physical technical systems. Technological competence accumulates not only in the heads of people, but also in the technical/physical systems that people build over time: databases, machinery, software, and so on. 3.3. Managerial systems. The accumulation of employee knowledge is guided and monitored by the company’s system of education, rewards, and incentives. These systems are often called management systems, and they create the channels by which knowledge is accessed and flows and barriers to the same

3.4. Values and norms It determine the kind of knowledge that is sought and nurtured, what kinds of knowledge activities are tolerated and encouraged, and so on. In organizations, there are informal systems of caste and status, rituals of behavior, and passionate beliefs associated with various kinds of knowledge. Often the systems in organizations are no less rigid and complex than systems of religion in society as a whole. Thus, values and norms serve as knowledge screening and control mechanisms.

These four elements are a first step toward a structural definition of competence. The four elements can be identified and manipulated by certain processes, thereby enabling us to go one step further. As our organization is looking to develop managers for international assignment, we also have to keep in mind the C/C competencies they will need to perform their job. By going through the literature and looking at the policies adopted by different companies I will go for the following competencies that will be essential for the international mangers in our company.

4.THE C/C RELATIONSHIP COMPETENCY DIMENSION

The C/C Relationship competency dimension is all about willing and able to maintain the interpersonal relationships with host country Nationals.To effectively deal with diverse communication styles, social customs, and the miscommunications that may arise from these; and to accurately understand and empathize with the feelings of another person (Hammer, et al. 1978; Mendenhall ; Oddou, 1985). In this competenciey dimension both dynamic and stable competencies exists. We can include cultural knowledge and conflict resolution knowledge in dynamic competencies and two types of skills can be included that are conflict-resolution skills and C/C Relationship self-efficacy.Dynamic C/C Relationship Competencies are as under:

4.1. Cultural Knowledge. For the international manager the awareness of the culture of host country is very important as it will make job easy and life smooth in that country. That’s why Follet gave it such importance and discusses it as “However, the form of cultural knowledge most relevant to C/C relationships may be conceptual knowledge, particularly about the other culture (e.g., values) and about one’s own (e.g., how one’s own cultural values might appear to a cultural outsider). This is because knowledge of the “Other” and of the self can help to provide the most critical piece of knowledge for relationship building: knowledge of how each party’s cultural characteristics might affect their interactions” (Follett, 1951).

4.2. Knowledge of Conflict-resolution Strategies and Conflict-resolution Skills. International manager having substantial amount of knowledge cant stop the rising conflict. He or she must be prepared to deal with conflicts and miscommunication when interacting with culturally different individuals, and to do so in a manner that permits effective work interactions (Hammer, et al. 1978; Mendenhall & Oddou, 1985). So what does that mean? For the international assignment knowledge of conflict resolution strategies is also important which can include familiarity with conflict resolution styles, strategies and tactics and how the culture will influence on those styles and strategies.

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This report discuss about the political economy of India in terms of political system, economic system and legal system. The purpose of this report is to analysis the benefit, risk and cost of inverting into India. It include of four parts which are introduction, political economy, recommendation and conclusion. In the introduction, the background of India and the reason of investing in India will be indicated. The following part, political economy, is analyzing the benefit, risk and cost in terms of political system, economic system and legal system. After the political economy part, recommendation about investing in India will provide. Finally, the conclusion will conclude about the report in terms of the economy of India.

Introduction

India is a developing country. It is the biggest and one of the oldest countries in southern-Asian. According to the ‘world factbook’ of the Central Intelligence Agency, in 2012, India become the 4th biggest economics in the world with GDP $4.761 trillion (USD). However, the GDP per capita based on purchasing power parity is just $3,900 (USD) which ranked 168th of the world because it is has the 2nd biggest population.(CIA, 2012) In India, 2 in 3 of the workforce in agriculture however services are the major source of economic growth in recent years. Since 1990, India opened its market and implemented the economic reforms by reducing the control from the government to foreign businesses and investments. Therefore, to an investor interesting in investing into Asian, India would be the most attractive country of investment. The purpose of this report is to analysis the political economy of India. The report would analysis the political economy in three different systems: Political System, Economic System and Legal System. In terms of the three systems, the report would discuss the benefit, risk and cost of each system.

Political Economy Analysis

The political economy indicates that the political, economic and legal systems of a country are interdependent by interacting and influencing each other so that they affect the economy. It is important to use political economy to analysis India because it is significance to understand the
potential benefit, risk and cost of political, economic and legal systems before investment.

Political System

India is a federal socialist republic belonging to the federal cabinet system which the powers of judicial, legislation and administrative. It has more 100 political parties and the three main parties are Congress, Bhartiya Janata Party and Communist Party of India. The highest leader is president who will change every 5 years.

The benefit in terms of political system of India is that the Indian government welcomes foreign investments and businesses. India opened its market since 1990 and the government develop a series of polices to increase the country’s attractiveness to the foreign direct investments (FDI). The policy of FDI is very loose. Most of the FDI are approved by the automatic route system. Furthermore, the Indian people respect the FDI as they help the economic growth. However, there is risk of unstable political situation as there is political unrest during the presidential transition every 5 year. In addition, everywhere corruption has become entrenched inside the Indian government so that there is a cost of bribe. As for taxation, there is no discount for the foreign investor as the government promotes fairly taxation rate.

Economic System

India is developing into an open-market economy with a rapidly economic growth. The benefit in terms of economic system of India is the high GDP, low labor cost and the convenient and efficient capital markets and financing channels. India has the 4th highest GDP in 2012 and its GDP per capita based on purchasing power parity is $3,900 which is quadruple of 2007. In addition, India has the second large population of the world which helps to create a large labor market with low labor cost in India. Compare to Europe, Indian labor cost is only 10% of European labor cost with the same productive. There is 28% of the labor force in services industry and
they can provide 24 hours services to the Europe because of time differences. Moreover, India has a relatively perfect capital market. It has 23 stock markets which all connected to the internet and 65 billion USD daily turnovers which ranked 3rd in the world. This relatively perfect capital market creates a high efficiency, high transparency and convenient financing channel for the investor and entrepreneur.

As for the risk in terms of economic system, the stress of the large population makes the capita income low so that the capita purchasing power is low as well. On the other hand, the problem of lack of infrastructure is serious. The India government does not invest enough into the development of infrastructure so that the cost of FDI is increase.

Legal System

India has a relatively complete legal system which is a benefit in terms of legal system. Market economy is the legal economy. The complete and perfect legal system will make the market function effectively. As a member of the Commonwealth countries, the India legal system is relatively complete and the public’s awareness of the law is also very strong. Therefore, the management of the legal system in India is more prominent which is walking in the forefront of developing countries. On the other hand, the risk is that the efficiency of judicial, legislation and administrative are very low. For example, a contract needs 425 days to be implemented while it only needs 286 days in other Asian countries. As for the cost factor, the law of Antitrust may increase the cost of FDI.

Recommendation

There are three recommendations about investing into India. Firstly, normally industrial products are more popular than high technology products in India because the capita purchasing power is low so that relative normally industrial products firm should research more about Indian market and become first-mover as soon as possible. Secondly, it is better to into the India market as a joint venture with a local firm. In this way, the local firm’s
network with the government and local customers can be used to open the market and reduce the cost. Finally, pay attention to the research of Indian policy because of its unstable political situation.

Conclusion

In conclusion, India is one of the fastest growth economies in the world. The amount of FDI increases rapidly. For example, according to the ‘Fact Sheet on Foreign Direct Investment’ of Indian government, the FDI amount in 2012 July is US$263,472million and in 2013 July is US$301,787million. India integrates into the global economic system and maintains a rapid development. Although there still some issues in terms of the investment environment, overall India still has considerable attractiveness to investors. India still has large space for development and it is possible that the development will be more rapid.

Reference list

Central Intelligence Agency (2012). The World Factbook. India. Retrieved 24 October 2013, https://www.cia.gov/library/publications/the-world-factbook/geos/in.html

Department of Industrial Policy & Promotion (2012). FACT SHEET ON FOREIGN DIRECT INVESTMENT (FDI). Retrieved 24 October 2013, http://dipp.nic.in/English/Publications/FDI_Statistics/2012/india_FDI_July2012.pdf

When we think about what we slowly call “international issues” in business and we’re actually talking about this critical duality. It’s the desire of trade to satisfy human wants and in this manner to bring different peoples and cultures together. And it’s the profession of government to create rules that keep things from running off the rails. Perner, in his article mentioned that there are different legal system survive in different countries today.

Some countries, the legal system are based on the common law like English speaking world; some are based entirely on statutory law like France and Germany, while many counties’ legal system Perner said are based to a large extent on religious law. He points out that in some countries one of their serious problem is a inadequate access to the legal system. The pressures of globalization frequently work to break down barriers between nations, which is all to the good.

But growing investment among nations also makes it more complicated for those in different cultures to understand the rules of the road. And it makes it easier for the dishonest to take advantage of the seams in legal systems and enforcement among different nations. That’s creating a growing need for governments and regulators around the world to harmonize our differing sets of rulebooks. Each of us knows that a common language promotes communication and understanding — not just in our personal lives, but in international business transactions, as well.

Markets, which blossom on information, are really just aggregations of people, who of course communicate better and more competently if they speak the same language. One of the big contributions that the world of business and commerce has made to global peace and understanding is that it has continually worked to establish smoother, faster, and better means of communication across cultures and national boundaries. By breaking down barriers between nations, regions, and social classes, trading and markets have advanced the cause of civilization.

That’s why it’s so significant, in order to help investors make sense of this spectacularly different world of global investing, that every nation do everything within their power to guarantee that business report information as well as legal system are similar and dependable. But although technology can do a great deal to develop life for investors, there will always be a need for human regulators to even the rough edges of international regulatory problems.

As an alternative of competitors, the world’s securities regulators have got to see one another as partners, working together for the good of investors to ensure the sound regulation of efficient global markets. According to Hiray, it is completely different doing business in home country than internationally. While doing business in other countries, Hiray reminds business people that they have to well aware of country’s culture, people’s behavior, country’s legal system, its political environment and economical conditions.

He emphasized on how significantly important to international businesses the legal system of a country. Because it can affect the attractiveness of a country as market or investment site if there’s differences in legal systems. Hiray explained that the law of the country is regulate business practices, defines business policies, rights and obligations involved in business transactions and the government of a country defines the legal framework within which firms do businesses. Therefore laws differ from country to country.

International Business Concepts 1st Concept: Sovereign Wealth Funds Sovereign Wealth Funds are investment funds controlled by governments holding great amount of stakes in foreign businesses aiming to gain profits and stimulate Its national economy. Charles Orate, reporting for Washington Times, expresses our urgency as a nation to create an American Sovereign Wealth Fund. If our government soon capitalizes $1 currently have a head start with their Swift. But that Is merely leverage. The leading reason as to why we absolutely need a SF Is to recover from our national debt.

Ever nice the survival of the 1945 World War, our debt Is no longer $345 billion. Instead, It has heightened to a depressing amount of $17 plus trillion. The ratios of our total debt to private sector incomes are distant values, causing a substantial deficit. The debt we have accumulated to this day is almost unfathomable. But if there is a will, there is a way out. If America were willing to have a politically independent Sovereign Wealth Fund, it would act as an economic stimulus. Our financial dilemma would be revived soon enough.

But the SF must be dealt with phenomenal management in order to gain substantial returns. Also, to evade interrupting America’s market prices, it would be wise to only invest internationally. Once America’s SF is established, the capital investment of $1 trillion will achieve immense profits, in turn accumulating wealth to subside our national debt. Therefore, relieving our country from financial stress, rejuvenating America’s credit rating, and rehabilitating our economy. An American Sovereign Wealth Fund will create a brighter and prosperous future. 2nd Concept: North American Free Trade Agreement (NONFAT)

North American Free Trade Agreement created a free-trade area among the United States, Canada, and Mexico. The three countries agreed to expand the flow of goods, services, and investments. Their objectives were to eliminate all tariff on imports, eliminate or reduce imitation trade barriers, promote conditions of equal competition, provide protection and enforcement of intellectual property rights, establish regional trade cooperation, and improve employment In North America. Forbes, a leading source for business news and financial Information, comments on the aged North American Free Trade Agreement.

Although It has been successful during It’s previous decades, the agreement seems to be on “life support. ” The NONFAT Is past Its 20th anniversary and yet there has been a lack of modern revisions. During February this year, President Barack Obama met with Canadian Prime Minister, Stephen Harper, and Mexican President, Unripe Penn Unite. They attempted to revivalist the NONFAT and strengthen their regional cooperation. But they were distracted by other international crises. In consequence, North America Is loosing business to China due to unaligned rules and unrecognized policies between the

The world is changing politically, economically, technically, and collectively at a previously unthinkable rate. Both new and skilled multinational firms are stumbling and committing mistakes as they confront these recently emerging environmental forces. What is desired now is a new way of viewing both the global and foreign operations of multinational firms. To be as thriving as possible, these firms should be as culturally attuned to the world and to every foreign society in which they seek to work as they are to their own home society.

The Webster’s New Collegiate Dictionary (1980) defines culture as “the incorporated pattern of human behavior that includes thought, speech, action, and artifacts and depends on man’s competence for learning and transmitting knowledge to succeeding generations” and “the customary beliefs, social forms, and material behavior of a racial, religious, or social group. ” These definitions point to numerous important aspects of culture. First, culture permeates all human behaviors and interactions. Second, culture is shared by members of a group.

And third, it is handed down to newcomers and from one generation to the next. This description of culture is not aimed at organizations but is very appropriate to them (AAhad M. Osman-Gani & Zidan, S. S. 2001, pp. 452-460). The prevailing trend in the international business environment in current decades has been greater directness in trade, investment, finance and technology resultant in increased international integration and interdependence in business and between states. What is also obvious is that large swathes of the world’s population are efficiently marginalized or barred from these trends.

This segregation has been a major factor in modern anti-globalization campaigns and is often used to justify proposals to reform or even abolish international institutions and to invalidate policies that have contributed to international integration. Morrison (2006) characterized a global industry as having intense levels of international competition, competitors marketing a standardized product worldwide, industry competitors that have a presence in all key international markets and high levels of international trade.

These definitions have the common thread of the need and opportunity to integrate strategy across countries. Though aspects of globalization and the guiding principles of the IMF and the World Bank have not always been affirmative for developing countries, it is a generalization to place all or most of the blame for the marginalization of developing countries onto these factors. Development is a multifaceted process but some countries have managed it successfully.

Considerably, it is those countries that have affianced most intensively with the outside world (that is, in East Asia), that have been most successful in their development endeavors. Equally considerable has been the keenness of each state to take a central role in the development process, a role that assorted from country to country depending on its culture and early circumstances. Development is a significant, and often ignored, issue for international business. Too often, international business and development are simply discussed within the context of problems such as child labor or environmental degradation.

Certainly, these and similar issues pose serious challenges for multinational enterprises and policy-makers but they are ultimately problems that, with adequate political will, are amenable to solution (admittedly, the political will requisite is of a much greater extent than has hitherto been seen). Successful development, however, forms markets and improves the quality of labor forces and key features of infrastructure, thereby creating investment opportunities. Investment in turn is essential to the development process.

Recognition of the need to be culturally attuned is not new. William J. Holstein and colleagues noted in a Business Week article that going global can be awesome as experienced CEOs find that their executive skills developed at home are not almost as sharp when diverse cultures determine the playing field (Holstein et al. 1989, 9-18). To sharpen these skills and permit managers to function cross culturally, firms have characteristically focused on management selection and training.

The thought here is that if being culturally attuned at home yields a non-cognitive automatic response, then suitably oriented managers could be selected and trained in the cultures of the world to exhibit also appropriate responses in other societies. IBM, for instance, requires that each manager shall receive forty-two hours of training each year on topics such as managing multinational groups of people and the internationalization of IBM’s business (Callahan 1989, 28-32).

Still, despite efforts such as these, one study noted that cross-cultural obstacles facing émigré employees continue to result in a failure rate of 20 to 50 percent of all expatriate assignments. International organizations develop certain assumptions, norms, patterns of speech and behavior that make them unique. Also, similar to social or racial groups, culture is one of the factors that differentiate one organization from another. Applying the concept of culture to organizations gives them a human quality.

Organizations become much more than the profit margin, the buildings, and the organizational charts. As living entities, organizations grow and change. They adapt to their environment and maintain internal health. Many management scholars have focused on the thought of adapting national culture in international business. It is usually defined as a series of basic assumptions that an organization has developed in learning to handle with its external environment and its internal functioning. These assumptions have been found to be effectual and valid and are therefore communicated to new employees.

Adapting foreign culture makes every international organization unique and bonds members of an organization together. The culture in the organization verifies what behaviors and ideas are acceptable and appropriate. Culture is the yardstick used to assess many behaviors and ideas, and it provides a foundation for the development of goals and strategies. For instance, an organization where one of the basic postulations is that people perform best under minimal control and supervision and need independence to excel would consider heavy-handed management techniques used by one of their new deplorable managers.

Furthermore, such an organization would be more expected to select a training program for developing participative management skills more than one focusing on processes for developing power. A case in point is the much-publicized W. L. Gore and Associates, with headquarters in Newark, Delaware, that makes wire and cable, medical products, Gore-tex fibers and fabrics, and industrial filter bags. One of the distinctive characteristics of the firm is its casualness and the absence of hierarchy and status symbols.

Employees and managers do not have prescribed titles, and creative problem solving is extremely encouraged. As a result, the use of status symbols that would designate a hierarchy is considered highly inappropriate. This instance demonstrates how a basic cultural assumption concerning factors that leads to effectiveness is used to find out which behaviors are acceptable (Jimmieson, Nerina L. , Katherine M. White, and Megan Peach, 2004, C1). Culture and structure are inseparable, since structure is one of the major manifestations of culture.

The culture is one of the factors that determine the relationship between employees and managers. As with the other elements, however, the culture may also be the result of structure. For example, in a highly centralized organization, the implementation of participative management and employee empowerment will be impossible without a change in the structure. Thus, the two elements are totally intertwined (Skinner, Denise 1. 2004, 5). Working productively in an organizational setting, demands a diverse approach of communication, management and negotiation.

The majority management techniques and interpersonal skills are put together on a personal value system that is extremely influenced by culture. Both company culture and national culture recount to a persons’ effectual behavior (Fisher, Glen 1990, 98). Working in national culture means working in a different cultural environment. As one national culture might interpret eye contact, smiling, happy, individual space, touching, punctuality, and arousing responses in a certain way, another culture might infer a totally opposite meaning from the similar behavior (Moran, Robert T. nd Stripp, William G. , 1991).

The deepest level of a culture is the least visible part, its value system. It becomes apparent indirectly, while working with foreigners. Basically, national culture inspires every feature of social behavior and manipulates communication style, personality, character, inspiration, knowledge and cognition. There is a widespread body of work on cultural differences in communication styles in the linguistics and cultural anthropology literature (Reine, P. P. V. & Trompenaars, F, 2000, 237-243).

Devoid of knowledge of the dissimilarities in national culture and mentality, without knowing how your colleague thinks, believe and proceed, or which communications and conflict-solving patterns these pertain, you run the risk of misunderstanding your business partners, and thus of jeopardizing your achievement both abroad as well as in locally-based inter cultural teams (Fisher, Glen 1990). It is simply through the cultural, personal and communication understanding of the responsible persons that international assignments and company start-ups abroad can be prohibited from becoming failures.

Though, effective communication with people of national cultures is particularly challenging. Cultures give people with ways of judgment, ways of considering, investigation, and interpreting the world. Thus the similar words can mean dissimilar things to people from different cultures, even when they talk the same language. When the languages are dissimilar, and translation has to be used to communicate, the prospective for misunderstandings increase (Fisher, Glen 1990). “Communication is effectual when the person interpreting the message attaches a meaning to the message comparable to what was intended by the person transmitting it. (Fisher, Glen 1990). The national culture in an international organization endures gradual change as the organization adapts to diverse environmental and internal events. This gradual change is incremental and rarely entails significant deviation from established patterns.

Effecting massive organizational change is therefore very strenuous. Changing the culture of an organization is as hard as changing an individual’s personality. Moreover, strong cultures will be more defiant to change than weak ones (Tony Proctor, and Ioanna Doukakis. 2003, 268). So as to change culture, all three of its levels have to change. Varying the first level of culture which includes all artifacts, physical elements, dress codes, building decoration, symbols, logos, and yet employee behaviors and speech patterns–is comparatively easy. One key to such change is a new reward system. For illustration, cooperative behavior can be confident and taught if organizational reward systems encourage it. Employees come to learn that they will be rewarded for collaboration.

Changes in this first level, however, do not essentially lead to changes in the second level, which comprises values, or in the third level, which consists of basic assumptions. The latter two is much harder to amend. For example, although as a result of training and a new reward system employee can learn to behave more considerately, they might still value competition and consider it to be the key to success and high performance. In the short term, cooperation can develop into an espoused value. It can become a deeply held value simply if it is proven successful over a period of time.

In addition, values that are distinct with basic assumptions are likely to lead to conflict and tension and are less probable to be adopted (Lloyd, Margaret, and Sheridan Maguire. 2002, 149). It is the continuous success of a new behavior (first level) that leads to the development of a new value (second level). If this new value is sustained and proven effective, it can lead to changes in several basic assumptions (third level). In the implementation of organizational change, a top down approach is less expected to be effective, although it will lead to behavioral changes.

Basic assumptions can simply be changed if all organizational levels are committed to the change and adopt it as their own (McNish, Mark. 2002, 201). The process will perceptibly take longer; however, employee participation leads to obligation to the development of new assumptions. Overall, although it may be moderately easy to change the discernible and obvious elements of national culture, it is very hard to amend the core of culture. Without the amendment of the basic cultural assumptions, the culture will only change apparently. Only with the long-term success of new behaviors will new postulations develop.

However, the deep-seated paradigms may avert consideration of new behaviors and values, since they often lead to a biased interpretation of the accomplishment of new behaviors and therefore discourage their use. Without major cultural change, substantial strategic change is likely to fail. Although the formulation of new strategy may be moderately easy, its successful implementation depends almost completely on existing culture or, in many cases, on a change in the existing culture. But such a change is exceptionally difficult and can only be successful with broad planning.

Managers can distinguish and acclimatize to different work styles and cultures. Getting work done through others entails a free flow of perfect information and open, prolific relationships with employees. But that’s easier said than done in a diverse workplace where lots of cultures collide. On the other hand, nearly every aspect of daily human life involves negotiations. Parenting, interpersonal relationships, commercial dealings and communications with customers, co-workers and suppliers are some of the few to name. Employees through strong negotiation skills are important assets to organizations.

Armed with the accurate knowledge, approaches and skills, well-trained and well-prepared negotiators deliver results that go immediately to the bottom line. Diverse techniques of negotiation attach to your ideas. An instance of this is when Americans were negotiating with Vietnamese. They used a plan stratagem in order to stick. Poor negotiating is when someone talks to you. Negotiating downwards is not an excellent way. It is like takes it or abscond it approach. Approximately everything is negotiable (Reine, P. P. V. & Trompenaars, F, 2000, 237-243).

Another culture difference is a bigger course toward people. It is in addition a high-level of internal negotiation, and a greater skill in managing international variety. European managers are able of managing linking extremes (AAhad M. Osman-Gani & Zidan, S. S, 2001, 452-460). Working in another culture a lot depends on the inter-cultural skills of the negotiator. Whereas technology and financial ability might be an issue in the negotiation process in our fast-growing world, the cultural competence of the negotiator provides a company the viable edge (Moran, Robert T. nd Stripp, William G. , 1991).

Cultural values persuade all features of behavior in doing business in negotiating through people from different surroundings; the most efficient approach for overcoming probable communication barriers is to center on the interests of the parties (Reine, P. P. V. & Trompenaars, F, 2000, 237-243). Why do they want what they want? You have to go at the back the validations they may use to protect why they want something; finally virtually everyone can come up with an explanation for whatever they want.

The actual issue is how what they want will hand out their interests (AAhad M. Osman-Gani & Zidan, S. S, 2001, 452-460). Negotiation progression is a build process. It is a challenging style, cooperative, working together, avoiding, and compromising style. There are negotiation tactics, which are trouble solving win-win and partnering. It is a build trust, shows optimistic feeling, and reduces differences, obvious and rational. It is also inspired, peaceful shows patience, elastic, seeks common interest, makes others contented, yields to good alternatives (Wiechecki, Barbara. 999).

Lots of manager has been aggravated by the employee who nods in obviously considerate of a direction, then does just the contradictory. Or there are the staff members who rise cold and distant after getting feedback on their work, as well as the team members who clam up at meetings when asked for ideas (Fisher, Glen 1990). Besides, our understanding, culture manipulate how close we stand, how loud we converse, how we contract with conflict even how we contribute in a meeting (AAhad M. Osman-Gani & Zidan, S. S, 2001).

Though lots of cultural norms manipulate a manager’s behavior and ensuing reactions, mainly significant ones are hierarchy and status, groups vs. individual orientation, time realization, communication and conflict pledge. By failing to recognize how culture collisions individually needs and preferences, managers, a lot misunderstands behaviors (Moran, Robert T. and Stripp, William G. , 1991). Think about the norm of hierarchy and status. If you desire all people to feel valued and to contribute in indicative or decision making, differences in this standard could be restrained.

An employee who has been taught regard to age, sexual category or title, might out of respect timid away from being sincere or offering ideas as offering proposals to an elder or a boss might emerge to be tough authority. The manager in addition might require structuring a climate that balances predilections for group and individual work. The employee who can’t or won’t subordinate individual wants or requirements for the good of the group might perform better working alone (Casse, Pierre 1995).

A culturally skilled manager generates opportunities for individuals to take a number of risks and investigate projects that don’t need coordinating with others. Doing so can hearten employees with a sturdy individualist bent to draw concentration to significant matters, such as policies or procedures that don’t work. On the other hand, when managers put too high a premium on evading workplace discord, even distinctive employees may be disheartened from providing potentially productive feedback (Moran, Robert T. and Stripp, William G. , 1991). However, managers require comprehending the people with whom they work (Casse, Pierre 1995).

Devoid of clear mutual understanding, it is almost not possible for a team to attain its objectives. Even in a comparatively standardized organization, designers and accountants, for instance, might be seen as representing diverse cultural perspectives. Getting them to work efficiently together is perceptibly crucial for a company’s success. And, most confidently, getting people whose cultural variety is based on diverse issues is no less significant (Adelman, Mara B and Levine Deena R. 1993). To obtain the information you require you have to get alternative approaches that are more in order with the employee’s culture.

Here are a number of suggestions: Evade yes/no questions such as “Is that clear? ” or “Do you understand? ” provide the employee options from which to prefer. Inquire for specific information, such as “Which step will you do first with this new practice? ” If time allows, carry out the task along with the employee or watch to see how well he recognizes your directions. Endeavor using unreceptive language that focuses on the circumstances or behavior, rather than the individual. For instance, “Galls should be answered by the third ring” or “All requests require accurate charge codes so as to be processed. (Adelman, Mara B and Levine Deena R. 1993).

Give workers enough lead time to gather their thoughts before a meeting so they can feel prepared to get input. Have employees work in petite groups, engendering ideas through discussion and presenting input as a group. One of the most significant functions of a manager is budding and grooming employees for encouragement. Cultural norms have a vast collision on this job as of the underlying conjecture a manager might make about an employee’s prospective (Fisher, Glen 1990).

One has to be cautious not to designate people with a particular image, to think that everyone with a particular ‘label’ thinks or acts alike. If it isn’t for differences, the world would be a very uninteresting place. What we require to do is finds out how diverse interests can be addressed to yield results that work for the organizations that have the decisive liability to realize an agreement. Organizational cultural diversity is merely one of the rudiments that desire to be taken into relation to keep things operating on a cultured level.