Cultural Issues in Global Organization

Cultural Issues in Global Organization

Introduction

Culture is the norms and values that form the behavior of individuals living in a society. Culture in inherited which is transferred from one generation to another and it is often difficult to forget the cultural values of individuals. Culture of different people tends to vary across the globe. There may be small groups within a society that form sub-cultures.

With the increase in globalization many domestic firms today operate across the borders in the international market to exploit the opportunities that prevail outside the domestic market and get benefited with them. These organizations may also hire a number of workers that belong to different cultures and also the country that they operate in would have different culture leading to distinguished beliefs and moral values which impose challenges on the organizations. It is therefore important for these organizations to analyze the impact of cross culture on their operations and success of the business. They need to follow the ethical values and abide them to the cultural norms of them that may vary greatly (Daft, 2006).

Companies outsource their business operations to get the advantage of lower cost and therefore they will be able to earn greater profits. Business however should not neglect their environment and ethical responsibilities while striving in the market to accomplish their goals of earning profits and growing their business operations. They need to ensure that they are obliged to follow the ethical principles of the state to ensure their corporate responsibility. As multinational companies initiate their business operations in various states this leads to mixing of a number of culture with each having their own moral values thus resulting in a number of issues that should be tackled in different ways that are appropriate according to each of their behavior.

Globalization results in bringing together a large group of people together that belong to different cultures; to handle this diversification effectively individuals are required to have appropriate skills and risk taking ability, along with that they also need to make certain that they have in depth knowledge of all the cultures. It is essential for these businesses while operating outside the domestic market to have a sound understanding of different cultures as the strategies that have proven to be successful might not be effective in other nations. In order to ensure effectiveness it is significant to tackle the human resource cultural issues (Primecz, Romani & Sackman, 2012).

Discussion

Effective management of these culturally diversified groups of culture would result in organizations having a competitive advantage and since due to increased globalization, the competition has become even more intense therefore making it difficult for firm to acquire customers and achieve their goals of surviving successfully in the market and growing rapidly. Companies intend to grow their businesses in the international market as they believe they will then be able to achieve growth and generate larger revenues they also intend to search labor that will be available at cheaper ...