“Cultural Dimensions” Please respond to the following:
•Evaluate the importance of MNCs having a culturally diverse board of directors and work force. Provide one (1) example that depicts the main reasons why such factors are essential for international success.
•From the e-Activity, assess the importance of understanding cultural differences for employees of companies operating internationally. Select three (3) of Geert Hofstede’s cultural dimensions, and, based on the chosen dimensions, compare the U.S. and Thailand. Interpret the results that the comparison yields.
Diversity is not just defined in terms of race or ethnicity, but also should be extended to reflect other measures of difference, including sex, age, nationality, cultural heritage, sexual orientation, etc. A diverse workforce is proof positive that the organization respects the individual, providing equal opportunity to all for personal growth and development. In most cases if diversity was only important to top management, then their majority peers would not make minorities welcome and lack of retention would be an expected outcome. Respecting diversity yields cultural inclusion and inclusion provides a positive environment for minorities to feel welcome.
MNC corporation benefit from this because of the ideas different group of people bring on board. It is therefore important to say that employees with different background and experiences will bring together a variety of perspectives, thereby evoking alternative solutions and approaches when discussing a topic or issue within MNCs. An example of a company that has depicts the main reasons why a culturally diverse board of directors and workforce is important is the Coca-Cola Company. The Coca-Cola Company leverages a worldwide team that is rich in diverse people, talent and ideas. The company has a talent of people from all sort of background around the world and this has been critical to the company sustainability.
Understanding of cultural differences for employees is very important for the success of companies operating internationally. Having respect for cultural differences and learning basic characteristics of other cultures can help you avoid misunderstandings and unintentionally offending others which are vital for the success of a company. For example different gestures and body languages can mean different things in different cultures. Eastern Europe and North America, is classed as a “non-contact” culture, in which there’s very little physical contact in people’s daily interactions. Even accidentally brushing someone’s arm is grounds for an apology. By comparison, in the high-contact cultures of the Middle East, Latin America, and sub-Saharan Africa, physical touch is a big part of socializing. So international company employees must be aware of the environment they are in and try to adopt the culture of their environment for the benefit of the employee and the organization as well.
The three Geert Hofstede’s cultural dimensions I chose are Individualism vs. collectivism (IDV), Masculinity vs. femininity (MAS) and Uncertainty avoidance index (UAI). With Individualism vs. collectivism (IDV) in the U.S. culture a person is all or more admirable if they are a “self-made man” or “makes up their own mind” or show initiative or work well independently but in Thailand people identify with and work well in groups which protect them in exchange for loyalty and compliance. With respect to both the Masculinity vs. femininity (MAS) dimension in the U.S. and Thailand, the U.S. by far generally have equal opportunity for both genders but in the Thais greatly emphasize on working in pleasurable atmosphere and fostering strong spirit in the community. According to the Hofstede’s dimension Thai people dislike uncertain situation and tend to avoid unpredictable situations and the culture does not encourage subordinates dare to make mistake and invent new ideas whereas this may be said to be the opposite in the United States.