The latest Coca cola’s super bowl commercial stirred up resentment among various sections of people. The conservatives were outraged by the fact that the song “America is Beautiful” was sung in eight different languages and inclusion of gay couple in the ad. However there were others who supported the idea and inundated social media with note of support for the company and few others who probably didn’t get involved.
This is a reflection of today’s modern and segmented society. Globalization and technology have taken front seat in merging cultures and creating a world where communities interact more closely than ever. According to United Nations Conference on Trade and Development ...view middle of the document...
By understanding link between societal culture, organization culture and organizational identity we can find answers to many management dilemmas. My aim is to develop a critical awareness about the management complexities that arise due to cultural differences, identify sensitive issues in the field of HR and develop HRM techniques to create flexible, competitive and
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culturally accommodating HR practices. People are the most valuable asset for any organization, and by aligning management and human resource practices to conform to the socio-cultural norms will assist in breaking down the cultural barriers and bring people together to work in unison.
Every organization starts off with the intension to make a difference but not every one of them are successful. Walmart, a top - ranked Fortune 500 company and an international retail giant, experienced a major setback due to the cultural issues during its expansion effort in Germany. In 1997 – 1998 Walmart acquired two companies - Wertkauf and Interspar – in Germany with a hope to expand its reach in international markets. Despite being successful in U.S. markets, Walmart failed to make an impact in Germany.
Many analysts argue about the reasons of failure, however the role of cultural factors come up in many discussions and case studies. Walmart failed to tailor their management practices applicable in German context. Some of the cultural idiosyncrasies became a major determining factor in the decline of the company such as failure to understand the differences in consumer behavior, culturally inappropriate customer service, imposing US corporate culture, inability of managers to acknowledge cultural differences and develop team synergy, and ignoring feedbacks from German employees. In short, insensitivity to the local culture forced Walmart to retreat from Germany by 2006.
In contrast BMW group in China made an impressive impact by adopting the language and cultural element as part of their strategy. In one of the report, Dr. Christoph Stark said “BMW internalized the Chinese cultural flavor in true sense”. They partnered with local media and dealers, became official partner for Chinese Olympic Committee and Expo China Pavalion, and attached the brand with various CSR (corporate social responsibility) activities. [Source: http://www.bmw.com.cn/]
While there could be other factors contributing to success and failure of these global organizations, it is reasonable to assume that culture play a vital role in affecting organization’s health and performance.
There has been many research work related to cross cultural influence. Florence Kluckhohn and Fred Strodtbeck (1961) were among the first researchers to
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engage in a systematic discussion on national culture. They came up with a framework “Value Orientation Method (VOM)” that...