describes how multinational organizations create and sustain

describes how multi-national organizations create and sustain a common internal culture.

Solution

Multinational firms have diverse workforce that comes from different cultural backgrounds. This diversity creates various problems in an organization like poor communication, decreased productivity and conflicts. To deal with such problems the multi-national firms need to create and develop a common internal culture.

The multi-national firms can develop and sustain a common internal culture at the workplace using given steps:

The companies should provide cross-cultural training to their managers and employees. It would help to minimize the prejudices, ethnocentrism, and misconceptions of individuals regrading other cultures. Hence, it would reduce the cultural gap between people working in an organization.

A firm can overcome these cultural gaps by adopting geocentric or polycentric management style. An ethnocentric style of management should be avoided. This means that the persons who are employed in the foreign country should be hired for their technical and managerial skills rather than the fact they are from the home country.

Besides this, even the employees from home country should be fully trained regarding the culture, religious beliefs and customs of the foreign country. Most embassies and consulates of foreign countries offer orientation programs for the persons who are planning to take up some foreign assignment.

Cultural literacy is learning about the culture of the other nations. It improves the ability of a person to manage all the activities in other nation and live happily. To start a new business in foreign country the business corporates should understand its culture. It would help them to understand and satisfy the needs of employees in a better way.