Theories Explaining Relationship Between Headquarters and Subsidiaries

It is no longer feasible that a corporation can successfully move through the global marketplace without learning to recognize the cultural norms of each country. It falls to the executives and managers to implement these changes and to ensure that their companies are working to move towards a more inclusive, and ultimately, more profitable way of doing business that appreciates and respects all cultures and work

The case of Karen Leary illustrates the implications cultural conflict can have on business organizations and office culture. A common mistake managers make is undermining the power of cultural constraints at the organizational level. After six years as a financial consultant at Merrill Lynch, Karen Leary was promoted to general manager at the Elmville branch in Chicago. Leary wanted to achieve success at the branch office by building high-producing, successful group of professionals who work together to provide clients with complete service in meeting long-term financial goals.

The continuous growth in global business interactions and partnerships constitute the necessity for business partners to understand the cultural differences in society. This growth has led to increased competition and customer expectations which drives the need for innovation from a variety of human resources (Saray, Patache, Ceran (2017). The importance of understanding the international business culture and how to properly communicate is extremely crucial to form a strong relationship. The driving force behind human behavior is culture (Moran, Abramson, and Moran, 2014, pp.11). Behaviors, attitudes, productivity, and morals are all driven by culture (Moran, Abramson, and Moran, 2014, pp.11). The ability to recognize the cultural differences, emphasize employees’ roles, drive empowerment and make the necessary accommodations is a key measure to achieving strategic goals (Saray, Patace, Ceran (2017).

All Organisations posses a distinct form of culture with some having more than a single culture. This culture is usually very difficult to measure, change and most especially change.

Those that go into the business world quickly recognize that each work environment they find themselves in can be total different from another. This can especially be said even of environments within the United States, from region to region. There is definitely a disparity of workplace environments from country to country. Not only can culture drive a varied atmosphere, but the diversity of the personnel making up that environment can equally create a challenge that a leader must be prepared to manage. Recognizing that special care needs to be placed on communication and perception skills is crucial in our present professional domain. Managers of today need to employee tools from the psychological and sociological field to be successful. Having a deep understanding in the differences in culture and diversity in the workplace is critical, especially when debating about accepting a position overseas or assigning an employee to an embedded position abroad. With a broad knowledge of cultural differences and diversity, success as a manager and the stability of a positive work environment can be achieved and maintained without unnecessary effort and focus.

Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.

Knowing our colleagues cultures and traditions can facilitate the way to communicate without causing misunderstanding

Cultural organization is unique and configures their norms, beliefs, values, and behavioral characteristics into the individual and groups that unite to get things accomplished. Patterns begin to evolve and become a rule of basic assumption; whether it is a new idea, one recently discovered or under development by a certain group as they learn to cope with internal integration and external adaptation problems. Cultural characteristics are hard to define because culture is multi-dimensional with integrated components that intertwine at different levels and ever-changing which takes time to establish and therefore time to change it also. Culture becomes the fabric or social glue that unites its participants, this will counteract any processes that are different becomes an unavoidable side-effect of life in an organization. Mutual understandings and a shared system of meanings becomes the basis of communication in a cultural organization. Functions of a society need to be fulfilled with a certain amount of satisfaction or culture can impede the efficiency of that organization. Problems with this concept arise when trying to categorize culture or when, why, or how corporate culture should be changed or finding the best, healthiest or most desirable one.

There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure.

In the workplace today, we have a staggering variety of cultures working side-by-side, blending untold influences together to achieve a business objective. The challenge for both workers and managers alike is to find ways to

Generally, individuals consciously or subconsciously interject ethnic values, attitudes, or behaviors into the dynamics of company culture. Factors that impact the extent to which diverse cultures interact with existing cultures are: 1) where they come from, and why they are here, 2) where they live, 3) the socioeconomic status, education and upward mobility, 4) the political and religious ties, 5) the spoken languages, 6) the extent of family intermarriage with or connection to other ethnic groups, 7) and the individual's attitude

The importance of understanding cultural, ethnic and gender differences by managers and professionals in a business setting is essential to make the work environment comfortable. In every culture there are basic standards of thinking, and acting and these cultural differences strongly influence workplace values and communication. What may be considered acceptable and natural in the workplace for one person may be unacceptable for another person. People from diverse cultures bring new ways of thinking, creativity and language skills needed to survive in today’s work force. In many

Some strategy to help strengthen the organization call for managers to modify observable cultures such as shared values, and common assumptions directly. Most organizations contain a variety of subcultures, and a few have countercultures that can become the source of potentially harmful conflicts. The corporate culture will also reflect the values of the larger national culture. The first step management must take is to first recognize an organized culture’s subculture. Subculture’s management are referred to in the OB literature by the term “Management Philosophy.” Management Philosophies link key goal related issues with key collaboration issues and develops guidelines by which the firm will manage its affairs. It is important to have a well developed management philosophy because it links strategy to a more basic understanding of how the firm is to operate. These strategies are; (1) to establish understood boundaries for all members of the firm, (2) to provide a consistent way of approaching new and novel situations, and (3) to help hold individuals together by assuring them of a known path toward success. Managers may and can modify aspects of culture which include; modifying the language, stories, rites, rituals, and sagas. They often will change the lessons to be drawn from the stories told and even encourage people to see the reality they see. Because of top management’s position, senior managers can interpret situations in new ways

In the 21st century, diversity is an unavoidable phenomenon. A large percentage of work places, small or large, have become global villages with vast mixture in nationality, ethnicity, religious beliefs and sexual orientations of staff and clients. This allows for a mixture in opinions, modes of operation and ideas, however for these to truly be pros instead of cons, the organization has to apply measure to ensure that all individuals, regardless of their diversity can communicate with and among each other effectively, to ensure smooth operation within the organization. Therefore, this paper will discuss the relationship between diverse cultures and values, and communication, how national and organizational policies influence

Managers were concerned about knowing and understanding each and every perspective of their employee’s cultures. As they know that without studying or knowing the culture, coordination cannot be built between the employees. It is the existing perspective of managers dealing with cross-cultural management (Sultana, 2013).