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Unit 18 Human Resource Management Service Industries Assignment
Culture represents the norms, behaviour, traditions, beliefs etc. followed by a group of person. And, National Culture represents the culture followed by a group of person within the geographic limits of a nation. Every nation has their own sets of beliefs and traditions and these cultural beliefs distinguish cultural practices of persons of one nation from persons of another nation. And other factors such as Motivation and team- work also another sphere where employee engagements are influenced. International or Multinational Companies are basically those whose head office is in their home country but they establish their offices and factories in other part of the globe in order to expand their businesses. They basically go global and enlarge their businesses while engaging thousands of employees from all over the world. Human Resource Management is basically a formal technique which is installed in an organization in order to manage and supervise the Human Resource factor in an organization. Any organization gets it work done through Human Resource i.e. Employees and thereby we can say that Employees are the most important aspect of Human Resource Management. And for the success and growth of any organization proper understanding and management of Human Resource is utmost important.
- Through study of the impact of National Culture, Motivation level, Team Work in the Employee Engagement within MNC’s and the role of Human Resource Management in addressing the same, will includes various aspects that affect the working of the Multi National Companies and the Human Resource Management department of the same.
- A Multinational Company has to surely incorporate certain changes in its corporate culture in accordance with the geographical area of the Organization. This is because human resource is very much affected by their traditions and surroundings and their overall working also affected by their culture and values. Therefore Human Resource Department of a Multinational Company has to adjust itself in accordance with the National Culture (Reutzel, et. al., 2016).
- Motivation is basically a theoretical concept and is one of the most important aspects of the Human Resource Management. Motivation has been derived from the concept of motive; thereby it basically means to stimulate in one the energy or desire to be committed to and fulfilled an allotted work.
- Motivation definitely gets affected because of the difference between the corporate culture and the national culture of an Organization. A multinational company has its origin from a foreign culture which is in contrast to the national culture of the employees who works in it. Therefore it poses certain challenges among the employees and the Human resource department (Al Ariss & Sidani, 2016).
- Team Work refers to basically working of a group of persons together towards achieving the common goal. Irrespective of the national cultures or any other sort of differences, team work means to be together and fulfil a common objective.
- Team Work also gets affected because of the difference of the Organization’s working and the culture, traditions, behaviour patterns, norms and beliefs of the Human or employee of the Organization (Belizón, et. al., 2016).
Impact of national cultures on Employee Engagement within multinational companies (MNCs) & the role of HRM in addressing the issues arising
- In the age of globalization, it is quite evident that hundreds of big corporations, big brands and organization go global with a view for expansion of their business. While going global there are hundreds of things which requires in consideration such as the local practices and national cultural differences that exists among masses.
- The National Culture refers to the beliefs, customs and traditions of a masses of a particular geographic location and the organization culture refers to the norms and traditions follows by a particular enterprise, there are major issues among the employees with respect to the two concepts, these issues are to be considered while organizing any sort of multinational company (Belizón, et. al., 2016).
- Many of the Multinational companies tend to adjust themselves in accordance with the national culture of the geographic limitations.
- The Human Resource Managers are mainly has to address the issues related with the national cultural and to create structural training and developments of the Employees of the Organization in order to achieve the Organization’s goals and objectives.
- The main issues of the impact of the national culture of the employee engagement on the Multinational companies are the tendency or the degree up to which the organization and the employee has to change itself in order to work in accordance with Organization’s Business environment (Kidron, et. al., 2016).
According to the Marcus & Gopinath, Culture basically refers to the beliefs, values, customs followed by the masses. As per his studies in The Nigerian Petroleum Sector, a national cultural difference is a concerned topic in a multinational organization. Since human plays an important role in the working of an organization therefore issues related with the national cultural is major concern for all (Marcus & Gopinath, 2016).
According to the Sarah Hutnek, there are hundreds of organizations who work globally and works on marketing strategies for making their brands global. As per his saying, one’s organization brand needs to be mould according to the preferences of the geographic location. And that the role of human resource manager is of utmost important in decreasing the cultural issues among the masses (Hutnek, 2016). Various theories such as Hofsted’s theory plays crucial role in implementing various best training methods for improving the home country employees as well for the foreign country employees (Hutnek, 2016).
According to Dr. A. Marcus and Namitha M. Gopinath, globalization has led to immense cross border business orientation among the masses. And with the increase multinational organization, the cultural issues have increased tremendously among the employees of the organization. Therefore, for a human resource manger it is utmost important to implement various tools and techniques to reduce the cultural issues among the employees. Various relaxations in terms of economic barriers, political barriers, Social development and technological advancement have opened the doors for the cross border organizations. And the employee engagement accordingly has to be improved in order to create a free atmosphere for feel free to work and for cultivating ideas (Marcus & Gopinath, 2016).
The Impact of the national cultural on the human resource and employee engagement in the Multinational Company or international organization is huge. Since Multinational Companies are established across international borders therefore there occur huge cultural differences among the employees of the organization. Therefore any human resource strategy or any guidelines must be established in consideration of the human cultural differences (Marcus & Gopinath, 2016).
Two countries differ from each other in multiple ways such as traditions, beliefs, customs, and economic stability, normal behaviour of the masses of a particular region or nation. Some countries are rich with high purchasing power of the masses on the other hand some countries poor or developing with low purchasing power with the masses. This develops difference among the masses and their practices. Normal traditions and practices of the countries, different countries have different way of practising their norms and cultures which place a great affect on the normal lives of population of that (Marcus & Gopinath, 2016)country
Therefore the Human resource management has a huge responsibility on its part to develop the different structure and mechanism for the employees and masses of the different countries. They have to consider their tradition, customs, belief, education and working pattern while planning the Organizational culture in an Multinational Organization (Marcus & Gopinath, 2016).
Impact of Motivation on Employee Engagement within multinational companies (MNCs) & the role of HRM in addressing the issues arising
- Motivation is the sense or stimulation of the energy or desire for completion of a well defined objective or goal. It is that energy factor which creates the sense of accomplishing a given task with full energy and enthusiasm.
- Motivation is a very important term in an organization. The most important resource of an Organization is indeed its employees. An organization gets its work done through only human or employees and that is the most important and dynamic factor of an Organization to be taken care of.
- Various motivational techniques and theories are established by the various economist and practitioners for increasing the motivational factor among the employees in order to achieve the Organization’s objectives and goals. And to overall increase the employee management and to reduce the organizational conflicts and employees depression during a low phase.
- A multinational company has obviously more challenges than a homeland country as apart from normal working and pressures, it also has to face other challenges such as diversity in cultures, differences in the organization culture and the national culture etc.
- These sorts of differences mostly tend to reduce the motivational level among the employees. As when employees cannot cope with the diverse corporate culture or faces challenges while establishing professional relationships their seniors or head tends to lower down their motivation.
- These sorts of challenges are also to be faced up and solved by the Human resource department. Human Resource department plays significant in implementing various motivational techniques and motivational orientation for increasing the overall motivation factor among the employees and for making them familiar with the Organization environment.
According to the Mohammad Saeid Aarabi, Indra Devi Subramaniam, motivational factors are very important and necessary for the overall growth of the employees and that these are very much needed during the low or depression side of the employees of the organization. For motivating employees there are number of factors such as job security, promotion, freedom, friendly environment and training etc. Constant working of employees in an organization needs certain motivation factors for creating rejunuvation and enthusiasm among the employees for making a positive and satisfied environment for the employees in the organization (Aarabi, et. al., 2013).
Job satisfaction can take place only if there are work motivations and he has somewhere tried to establish certain relationship between the two variables. Some of the motivational factors expressed by him were training, promotions, increments, salary increment, bonus, motivational lectures/ seminars through motivational anchors, team empowerment and extra payment according to the working performance. These factors are very much used for increasing the overall job satisfaction among the employees. Through these measures certain level of motivation can be increased among the employees and the overall productivity of an organization can be increased (Aarabi, et. al., 2013).
According to Oluyinka Solomon, Noor Hazarina Hashim, Human resource management plays a crucial role in enhancing the employee engagement in an organization. The HRM department can with the help of various tools and techniques improves the motivational factors among the employees of the organization and help in boosting the overall productivity of the organization. it ultimately helps in achieving the goals and objectives of the organization with the better task force (Solomon, et. al., 2012).
- Motivation as discussed above is a driving force behind achieving of a certain goal or objective. It is force required for the completion of a task or work.
- Lack of motivation among employees in a multinational companies leads to lack of employee engagement.
- Motivational factors are very much important for increasing the motivation among the employees in a multinational company which has so much of diversity in their working. The diversification in a multinational organization leads to decreasing motivation among the employees (Solomon, et. al., 2012).
- Employees generally take more time to settle down in a multinational company as compared to any other Organization leading to low morale and de motivation among the employees and which ultimately affects the overall working of the organization. Organizations where employees have low motivation tend to adversely affect in accomplishment of the organization’s goals and objectives. Therefore HRM has a huge role to play in it and to implement various motivational techniques to improve the motivation factor among the employees and this will ultimately lead to better employee engagement in the Organization or Multinational Organization (Solomon, et. al., 2012).
- A renowned author Abraham Maslow says that every individual has a strong desire to reach their maximum potential. Various motivational theories can be implemented by the Human resource manager for improving the Employee Engagement in a Multinational such as Maslow’s Hierarchy of motivation, Alderfer ERG, Vroom expectany theory, Herzberg Job satisfaction and dissatisfaction etc. These theories can be really helpful in improving the motivational factors among the employees and thereby improves the overall employee engagement in a Multinational Organization.
Impact of Team Work on Employee Engagement within multinational companies (MNCs) & the role of HRM in addressing the issues arising
- Team work basically means a group of person together to achieve a certain goal or objective. Any particular work can be completed with the mutual help of people altogether. Therefore team work and leadership traits are very much important for the accomplishment of goals and objectives of an organization and most importantly in a multinational organization.
- In a multinational organization there occurs plenty of difference among the employees such as diversity in traditions, beliefs, communication, customs etc.
- Therefore with such diversity it becomes quite difficult for organizing a team work and to make it to accomplish the Organizational goals and objectives.
- Therefore Human resource department has a very important role to play in it, HRM needs to look into the factors which mainly hinders in the way of team work.
- Various barriers can be sort out by implementing various management techniques in the organization. And other techniques involved orientation, conferences, and group discussions regarding the issues among the employees.
- These techniques can help the organization to improve the team work and leadership pattern in the organization.
According to the Dr. Victor S. Sohmen, leadership and teamwork both are equally important for the growth and success of an organization. And that these skills are not accidentally occurred rather are develop and nurtured with passage of time. Leadership is essential for the successful implementation of the Teamwork. Leadership traits sometimes are already exists in some human but sometimes it has to be developed with the aid of training and sessions. As these traits lead the team and ultimately helps the team in fulfillment of organizational objectives and goals (Sohmen, 2013).
Team is basically a group of persons who shares responsibility and are dependent over each other for completion of certain tasks. While working in a team, teammates tends to develop various soft skills within themselves such as cooperation, coordination and most importantly communication levels, resolving conflicts and handling odd situations etc. And Leaders can extract the best from employees through team works. Team works provide immense opportunities to the employees for working to best of their skills and to improve their productivity. With the increased support and liberalization from the seniors and upper level managers, an employee’s productivity and creativity increases multiple times and overall leads to increase in the productivity of the entire organization (Sohmen, 2013).
According To Dr. Rahul Sharma; Dr. Mani Kansal; Ms. Puja Paliwal, An organization gets it works done through only with its people and therefore it is required to have teams in it as an individual cannot do anything it wants to do in the organization. An effective teamwork can help the organization to achieve whatever it wants. A team always follows up proper plan and set clearly its goal to be achieved an therefore an organization can lead the path of success with the help of effective teams. An effective team always recognize the energies of its team mates and use that energy in proper way,. He has explained the various types of team such as inter-dependent team, independent team, self-managed team, virtual team etc (Sharma, et. al., 2012).
- In a multinational organization, there is so much diversity in workplace that to combine all the individuals together and to create a team work is little more difficult than a National Company. As there is great difference among the masses beliefs, customs, education, linguistics issues etc. that to combine a set of people with cross culture becomes tedious task for the Mangers.
- Communication is to be considered as one of the most important factor hindrance in the way of team work. Lack of understanding of communication among masses leads to chaos and misunderstanding and sense of irritation arises among the masses due to non fulfilment of organizational goals (Sharma, et. al., 2012).
- Team work can become strong in those organizations which focus on leader and leadership trait because through leaders a team work can be directed towards a certain path and ultimately helps in fulfilment of the organization’s goals and objectives.
- Human resource management should constantly needs to works on the techniques and theories in order to increase the team work ability among the employees of a multinational organization (Sharma, et. al., 2012).
- Issues such as communication gap, difference among the customs and beliefs etc must be very much resolved among the masses in order to improve the employee’s relationships and ultimately increment in the team working quality among the employees and ultimately will help the Organization to explore its precious human resource.
With the complete study about the impact of national culture, motivation, and team work in a multinational or international organization, it is quite evident that these are major concern or issues for a Multinational Organization. A multinational Organization has a quite distinctive feature of “lots of diversity” in its enterprise. These diversities can either be put in to extract the best from it or it can destroy the proper working of the organization. Therefore to extract the best use of this diversification, a Human resource manager of the Organization has to surely implements tools and techniques to make the organization a better and coordinated place to work for. A complete analysis of the points, evidence and results of the various issues of Human Resource Management results into the understanding of the critical issues in a Multinational Organization. With this we can conclude that apart from the numerous benefits of a Multinational Organization, there are various issues related with its employees, which are considerable important for achieving the Organizational goals and objectives. And human resource/ employees are the key person for fulfilment of goals and objectives and for achieving growth and success of any organization. therefore there issues must be carefully analysed.
Critical Incident Technique (CIT) Reflection
Human Resource Management (HRM) is one of the crucial departments in any organization. This department is basically responsible for the installations of the formal systems to organize and manage the human resource in the organization. Large organization or specifically Multinational organization has an immense need of HRM department for organizing and managing issues of its Human or employees (Sparrow, et. al., 2016).
The main purpose of the HRM department is to increase the overall productivity of the organization by effectively and efficiently utilization of their human resource and by extracting the best from them. Apart from their regular work of providing salaries and compensations, recruitment and staffing, and designing of allocation of work among the staff, they are also playing major role in resolving the human issues such as conflicts among individuals, difference between national culture and organization culture in a multinational company, and resolving the issues of motivation and team work among the employees in a multinational organization.
In multinational organizations, mostly problems faced by the employees are of the National cultural issue. The difference of the set of beliefs, norms, behaviour etc arise difference among the Organization values and the employee’s values. An individual is largely affected by the norms, values and tradition and it becomes quite difficult to convert it into other values or norms. As we all know that changes are always resisted and not adopted easily by the individuals. Therefore HRM has an important role to play in it and to create a balance between the Organization’s culture and national culture of the country where the business has been established (Sparrow, et. al., 2016).
Multinational organizations such as Microsoft Corporation, Nokia Corporation, Nestle, Adidas, etc has established number of establishments throughout the world and has employed over millions of employees in their organization to work for them. With the immense diversification among the employees, these organizations has put great efforts in tackling the national cultural issues and has put tremendous efforts in reducing issues among the employees (Buckley, et. al., 2016).
The Human Resource manager of these big corporations’ researches and studies about the diverse and different national culture of their employees, these kinds of studies inculcate a sense of belongingness among the employees with their managers and organizations.
Difference in the cross culture of the employees can also reduced by the human resource manger by implementing various methods in improving the other aspects of Human Management such as motivation and Team work. Various sort of motivational techniques helps in increasing the motivation level among the employees and reduces the stress or any conflict among the employees. Due to immense cultural difference in the multinational organization, employees feels dissatisfaction, and feels left behind in the organization and a sense of loneliness arises them which ultimately affects the overall productivity of the Organization. Therefore constant sessions of motivation and sessions over leadership and team work inculcate sense of togetherness among them. Therefore a human resource manager should definitely opt for such sessions (Buckley, et. al., 2016).
There are numerous strategies which can be implemented by the human resource manger to reduce the cultural differences in the Organization and to create a friendly environment in the same.
- Good knowledge regarding all kind of foreign culture- A Multinational organization or International organization should necessarily needs to improve the knowledge of the foreign culture in order to understand the beliefs and traditions of the individuals and to help them through their means of understanding.
- Respect of other foreign culture- Especially in a Multinational organization, it is very much important to respect and to understand the foreign culture of all the employees in order to make them familiar with the Organization (Tarique, et. al., 2016).
- Helpful steps for taking advantage of each other culture- Rather than creating issues in each other’s national belief, employees needs to take help and benefit from one another customs and values. Good practices must be followed by all employees irrespective of the fact that of which country it belongs to. This will create a positive and better environment for all the employees.
- Ignoring the foreign culture and implementing common practices equal for all- Mostly big corporations follow this sort of practices for resolving the National Culture issues among the employees, corporations like Coca cola, Nestle, Adidas etc. creates an Organizational culture suitable for all of its employees all over the world. These sorts of culture do not discriminate among its employees and let everyone to explore their skills and productivity (Tarique, et. al., 2016).
Benefits of Cultural diversification in a Multinational Organizations or International Organizations
- Cultural diversification has immense benefits for an organization; this sort of diversification encourages creativity among the masses as persons with different thought processing evolve different ideas and nurture other employees of the Organization also.
- Persons from the different parts across the globe carries with them different experiences and level of problem solving efficiencies are also different. Therefore this enhances the thinking capabilities and knowledge of the employees working in the organization (Figueiredo, et. al., 2016).
- Different working personalities in a organization has different Management approach towards working in a organization and this leads to increase in the profit making capacities of the organization by implementation of various Management approach in the organization.
- For the personal growth and promotion, every individual make the best possible use of their natural values and education in order to create good impression over their seniors and these diverse culture in the organization leads to benefits for the employees as learn various values from each other (Reutzel, et. al., 2016).
With the complete study about the norms and traditions of multinational organizations with that of the national culture of the employees, we have learnt about the huge importance of Human Resource Management in a Multinational Organization or International Organization. And the numerous benefits as well as disadvantages of the Cross Cultural, Motivation, and Team work in a Multinational Organization.
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