Cultural Diversity in Business - Essay Example

Culture Table of Contents Introduction 3 Discussion 4 Carry out an analysis of the cultural issues that will need to be addressed by the organization unit in Brazil 4 Evaluate possible management models which may be appropriate in the context and suggest your preference, giving reasons 6 Conclusion 7 References 8 Introduction Culture plays a very important role, for a business unit trying to set up its establishment. This is because it is the culture of that particular nation or region that significantly affects the total sale and profitability of the organization. Moreover, if the organization became able to understand the customs, taste and preferences of the customers of the specific region, then it might prove effective for it, at the time of developing its products and services. Along with this, if the organization becomes successful in evaluating the language preference of the customers of the specific region then, they might use that specific language at the time of promotion (Mullins, 2013, pp. 223-234). It is done in order to amplify the total sale and productivity of the organization thereby amplifying its demand and prosperity in the market among many other rival players. Therefore, it might be clearly revealed that culture acts as the catalyst in enhancing the reliability and dependency of the organization in this aggressive market effectively among others. Thesis statement The aim of this essay is to carry out a detailed analysis of the possible cultural issues that need to be addressed by a Denmark based global business is planning to set up a new manufacturing business unit in Brazil. The study will also evaluate the appropriate management models that can be used in this context to identify the potential and strategic ways of solution for the issues. Discussion Carry out an analysis of the cultural issues that will need to be addressed by the organization unit in Brazil Culture is recognised as a concept that includes shared knowledge, beliefs, values and information that helps an individual to reside among all other members within a society. However, such type of belief, values and information of the individual of the society might be attained through birth or interpersonal communication with other members. However, as per Hofstede (2014), culture is defined with the help of various dimensions such as power distance, individualism, masculinity, uncertainty avoidance, pragmatism and indulgence. Similarly, the manufacturing unit of Denmark also had to face varied types of dimensional challenges at the time of developing its business unit in Brazil. (Source: Hofstede, 2014) In Brazil, the level of power distance is extremely high as compared to Denmark. This means, all the individual within the society of Brazil is not equal. Due to which, the less powerful members of the society or organization had to obey the rules and regulations of the powerful persons. As a result of which, the manufacturing unit of Brazil may face the problem of interpersonal conflicts among its members (Hofstede, 2014). This is because; all the members of the organization may not follow the orders or policies of the more powerful individual and it might lead to clashes or quarrel. Due to which, the rate of retention of the employees might get reduced resulting in attrition or lockouts. This might not only hinder the image of the organizational unit but also hamper its prosperity and profitability in long run. Other than power distance, the masculinity is also quite high as compared to Denmark. As a result of which the female members of the organizational unit of Brazil may not be offered equal rights and privileges and that may create conflicts among other members. Due to which, their level of motivation and commitment of the female employees might get reduced that may hinder their productivity and performance (Hofstede, 2014). However, due to lack of performance of the female employees, the overall profitability of the organization reduces to a significant extent among many other rival players. Other than this, due to lack of equal rights, the interpersonal relationships among its members might get reduced that may hamper their performance and commitment level. As a result of which, the manufacturing unit of Brazil might fail to present varied types of inventive products and services thereby hampering its reliability and prosperity in the market among others (Hofstede, 2014). Similarly, the members of Brazil always try to implement the best practices and technologies within the organization so as to reduce the future discrepancies and threats. However, such type of emotions may not be presented by the members of Denmark. In addition to these above mentioned factors, the members of Brazil manufacturing unit might comprise of high indulgence factor (Hofstede, 2014). This means, they might try to get involved within the issues of others so as to resolve it effectively. But it may not prove worthy for the members of Denmark as they are less indulgent. This might also create conflicts among the members that may hinder their communication level that may hamper their efficiency and performance. Thus, due to these dimensional variations, the manufacturing unit of Brazil might have to face varied types of above mentioned issues that may hinder its reliability in the market. Moreover, due to such cultural issues, the brand image and reputation of the organization of Brazil may not get enhanced among others (Hofstede, 2014). Hence, it might be stated that cultural issues play a significant role in declining the reputation and portfolio of the manufacturing unit of Brazil as compared to others. Therefore all the above mentioned cultural dimensional issues need to be addressed in order to amplify its popularity and brand value in this competitive market. Evaluate possible management models which may be appropriate in the context and suggest your preference, giving reasons In this age of competitiveness, sustainability is the most essential requisite of an organization. However, due to which, the organization need to retain its employees effectively, as they are the most important asset of an organization. Without which, an organization may not enhance its portfolio and reputation in the market among others. However, in order to retain the employees for longer period of time within the business unit, facing numerous cultural issues, the best and most effective management model is Lewin’s Change management model. It mainly comprises of three stages such as unfreeze, transition, refreeze. For example: in order resolve the issue of offering equal rights to both male and female members might be resisted by the power members of the business unit of Brazil at the initial stage or unfreeze stage. But slowly and gradually, it might be accepted by the members through adequate leadership control in the nest stage or transition phase (NHS North West, n. d.). But in order to make the members motivated towards the goal, the leaders need to present its positive effects so as to enhance their level of performance and motivation towards the assigned tasks. Finally the last stage is refreezing. This is the stage in which, the members might accept the fact and again get committed and devoted towards their tasks thereby amplifying the overall productivity and profitability in the organization in the market among many other rival players (Snell & Bohlander, 2010, pp. 323-334). Therefore, it might be clearly stated that by implementation of the above mentioned management model might prove most effective for the employees as it might prove effective in analysing and evaluating the positive sides of the issue (presenting equal rights to both male and female members) that may enhance the devotion and commitment of the employees (Adair, 2010, pp. 123-134). Moreover, the organization might also become successful in attaining varied types of suggestions at the time of developing new product lines that may prove effective in long run. Conclusion Conclusively, it might be depicted that, although culture offers varied types of issues but it might get resolved very easily with the help of Lewin’s management model. This is because; it offers the opportunity to analyse and understand the effectiveness of resolving the issues and might resolve it. Due to which, after accepting the issues, the productivity and profitability of the organization also enhances to a significant extent among others. Other than this, by accepting the change, the performance and efficiency of the employees might also get improved that may prove effective for the organization in long run. Hence, it might be revealed that by resolving the cultural issues, the efficiency and brand image of the organization might surely be improved as compared to others. References Adair, J. 2010. Effective Motivation: How to Get the Best Results From Everyone. New York: Cengage Learning. Hofstede, G. 2014. Organizational culture and Change management. [Online]. Available at: http://geert-hofstede.com/organisational-culture.html. [Accessed on 22nd May, 2014]. Hofstede, G. 2014. Dimensions of national Cultures. [Online]. Available at: http://geerthofstede.com/dimensions-of-national-cultures. [Accessed on 22nd May, 2014]. Hofstede, G. 2014. The cultural dimensions. [Online]. Available at: http://geert-hofstede.com/germany.html. [Accessed on 22nd May, 2014]. Hofstede, G. 2014. The Hofstede Centre. [Online]. Available at: http://geert-hofstede.com/germany.html. [Accessed on 22nd May, 2014]. Hofstede, G. 2014. What about Brazil. [Online]. Available at: http://geert-hofstede.com/brazil.html. [Accessed on 22nd May, 2014]. Mullins L. J. 2013. Management and Organisational Behaviour and culture, 10th ed. Harlow: Financial Times Prentice Hall. NHS North West, No. Date. Lewins Change Management Model. [Online]. Available at: http://www.nwacademy.nhs.uk/sites/default/files/86_1722011_lewin_s_change_management_model.pdf. [Accessed on 22nd May, 2014]. Snell, A. S. & Bohlander, W. G. 2010. Managing Human Resources, 16th Edition. New York: Cengage Learning. Read More