Exploring the Cultural Integration Challenges: A Case Study of a Multinational Company
Multinational companies often face challenges when operating in different cultural environments. One of the biggest obstacles they encounter is the difficulty of integrating various cultures within their organization. In this article, we will discuss the cultural integration challenges faced by a multinational company and how it overcame them.
Introduction
Culture plays a vital role in how people behave, communicate, and perceive different situations. When a company operates in a different culture, it is required to adjust its functioning according to the cultural practices of the region. Failure to do so can lead to misunderstandings, misinterpretations, and conflicts.
The Case Study
The multinational company we will be discussing in this article has its headquarters in the United States. The company deals with manufacturing, and its products are sold worldwide. In 2018, the company acquired a manufacturing plant in China and decided to operate it as a subsidiary of their organization. The move was aimed at increasing production capacity and expanding their operations in Asia.
However, the company faced various challenges in integrating the Chinese plant into their organizational culture. The plant workers had difficulty adopting the practices followed by the parent company located in the United States. The following factors were responsible for these challenges:
Communication Barrier
The Chinese workers found it difficult to understand the complex terminologies used by the management of the parent company. They were not proficient in English, which made communication challenging. The company realized the issue and took several measures to overcome the language barrier. Firstly, they appointed local managers who could communicate effectively with the Chinese workers. Secondly, they provided English classes to the workers and encouraged them to participate in team meetings to improve their language skills.
Cultural Differences
The Chinese workers had a different approach to work and different work ethics than the parent company. The management of the multinational company realized that they needed to be sensitive to these cultural differences to build long-term relationships with the Chinese workers. They started taking steps to understand their Chinese counterparts’ cultural practices and make gradual changes to align them with those of the parent company.
Hierarchical Differences
The Chinese workers are used to working in a hierarchical system where management decisions are never questioned. In contrast, the United States’ parent company had an open-door policy, where employees are encouraged to ask questions and challenge management decisions. This difference in communication culture caused misunderstandings between the Chinese workers and the parent company’s managers. The parent company organized workshops and training sessions to educate the Chinese workers about the open-door policy and its benefits.
Conclusion
In conclusion, cultural integration challenges often arise when a multinational company operates across different cultural environments. But these challenges can be overcome by taking the time to understand the cultural differences, adapting the organizational practices where necessary, and appropriately communicating with the employees. By doing this, the company can establish a cohesive and harmonious work culture that positively impacts the bottom line.
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