Understanding the Cultural Environment

1 Understanding the Cultural Environment The last few decades have been characterized by a rapidly globalizing business environment where there is regular interaction between people from different cultures. Cultures are the values that are deeply engrained in a group people that determine how they think, speak, act and perceive the world. To succeed as a multinational organization, it is important for the human resource to understand the cultural environment because international expansion is often accompanied by a culturally diverse workforce. Understanding the cultural environment enables the organization to develop cultural competence. A culturally competent business is crucial in today’s world because it enables the business to work in harmony with its stakeholders across the world.

In international business, hiring people from different nationalities and cultures is important because it gives the company a competitive advantage. A culturally diverse workforce brings into the business wide-ranging work experiences, skills and knowledge of how to operate in foreign markets.

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2 For an organization’s global expansion to be successful, the human resource management must have a deep understanding of the issues that vary among from one culture to another (HaysThomas, & Agars, 2016). What is considered a normal business practice in one country might be considered inappropriate in another country. These differences among cultures include; communication, etiquette, perception of authority, time management, and methods of resolving conflict (Morgan, 2015). The cultural environment has a significant impact on the organization because it determines the most ideal organizational structure to adopt. Examples of organizations that have succeeded as a result of their cultural competence in human resource management are Coca-Cola, Starbucks, Tata and General Electric.

The human resource of an organization can better understand the cultural environment of foreign countries by proactively conducting research on different cultures in order to learn and assimilate itself into the cultural environment effectively. It is crucial for multinationals to not only understand but also accept cultures that are different from its own.

3 References Hays-Thomas, R., & Agars, M. (2016). Managing Workplace Diversity and Inclusion. London: Taylor and Francis.

Morgan, J. (2015). The Future Of Work: Attract New Talent, Build Better Leaders, And Create A Competitive Organization. John Wiley & Sons.

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Reference Hays-Thomas, R., & Agars, M. (2016). Managing Workplace Diversity and Inclusion.

London: Taylor and Francis.

Morgan, J. (2015). The Future Of Work: Attract New Talent, Build Better Leaders, And Create A Competitive Organization. John Wiley & Sons.