Using academic literature, critically analyse a key people issue / challenge in the context of global organisations.

Assignment Brief

Element 010 Written assignment 3000 word essay

People issues in global context

Task:

You need to clearly define the topic you have chosen to focus on in terms of a specific issue / challenge related to International HRM. Critically review and discuss literature relevant for your topic, explain key concepts, theories and debates to show how these help create an understanding of the people issue / challenge you are focusing on. The aim is to demonstrate the ability to use academic literature to understand and analyse a complex issue and its implications. In doing so you should draw on a good range of literature, including academic peer-reviewed journal articles.

1.	A clear introduction that demonstrates understanding of the topic you have chosen to focus on with coherent indication of the core debates, indication of how they are relevant and important and an outline of how the topic is addressed.
2.	Evidence of critical understanding of the topic and its complexities with the inclusion of academic literature to demonstrate your theoretical analysis. The argument must be sustained and supported with evidence.
3.	Conclusion that flows from the main body and therefore, earlier arguments and clearly and logically draws these together and apply them in a discussion of implications to reinforce the key ideas and arguments.

Sample Answer

Managing Cultural Diversity as a Key People Challenge in Global Organisations

Introduction

In today’s globalised world, businesses often operate across multiple countries and cultures. This brings many advantages, such as access to new markets, talent, and innovation. However, it also creates people-related challenges, especially around managing cultural diversity. Cultural diversity refers to the existence of different values, beliefs, and behaviours among employees from various cultural backgrounds. While it can be a source of creativity and competitive advantage, if not managed well, it may lead to misunderstandings, conflict, and reduced performance (Adler, 2002).

This essay focuses on the challenge of managing cultural diversity in international human resource management (IHRM). The aim is to critically analyse how academic theories and literature help explain and address this issue. The essay begins by defining cultural diversity in the global context, then discusses key IHRM theories such as Hofstede’s cultural dimensions, Trompenaars’ model, and the concept of cultural intelligence. The paper also explores the practical implications of managing diverse workforces and offers some recommendations for HR practitioners. Finally, it concludes with a summary of key arguments and implications for global organisations.

Understanding Cultural Diversity in Global Workplaces

Cultural diversity in international organisations is shaped by the interaction of different national, organisational, and personal cultures. According to Hofstede (1980), cultures vary along several dimensions such as individualism vs collectivism, power distance, and uncertainty avoidance. These cultural differences affect communication styles, leadership expectations, teamwork, and decision-making.

In global companies, people from high-context cultures (e.g., Japan, China) may rely on indirect communication and respect for hierarchy, while those from low-context cultures (e.g., UK, USA) prefer direct, open dialogue and more egalitarian relationships (Hall, 1976). This can lead to misinterpretations and inefficiency if HR teams do not promote mutual understanding and inclusivity.

Trompenaars and Hampden-Turner (1997) also highlight how cultural values shape workplace behaviours. For example, cultures differ in how they view rules versus relationships (universalism vs particularism), time management, and individual vs group orientation. These differences must be considered when designing HR policies on performance, rewards, and conflict resolution.

The Role of International Human Resource Management (IHRM)

IHRM is responsible for managing people across international borders, taking into account legal, cultural, and institutional differences (Dowling et al., 2013). Managing cultural diversity is a key concern for IHRM because it affects recruitment, training, performance management, and leadership development.

One important concept in managing cultural diversity is cultural intelligence (CQ). CQ refers to a person’s ability to adapt to different cultural contexts (Earley & Ang, 2003). HR managers with high CQ are more effective at building trust, leading diverse teams, and avoiding cultural faux pas. According to Rockstuhl et al. (2011), leaders with high CQ are better at motivating international employees and avoiding misunderstandings.

Global companies must also develop inclusive practices and offer cultural training programmes to reduce bias and encourage collaboration. These practices include diversity and inclusion (D&I) training, mentoring schemes, and cross-cultural teams. For example, Google and Unilever have implemented global D&I strategies that encourage respect for differences and inclusion of diverse perspectives (Cox & Blake, 1991).

Challenges and Complexities

Despite the benefits of diversity, managing it is not simple. One challenge is ethnocentrism, where managers believe their culture is superior to others, which can lead to discriminatory practices. Another issue is communication barriers, where misunderstandings arise due to differences in language and non-verbal cues. For instance, a simple nod or gesture may have different meanings in different cultures.

Teamwork and leadership can also become difficult in culturally diverse settings. Research by Stahl et al. (2010) shows that multicultural teams may experience lower trust and cohesion in the early stages due to differences in expectations and communication. It takes time and effort to build mutual understanding.

Performance management is another area where cultural bias can affect fairness. In some cultures, self-promotion is encouraged, while in others, modesty is valued. HR managers must ensure that appraisal systems are flexible and culturally sensitive.

Global mobility presents yet another challenge. When sending employees abroad (expatriates), HR must consider cultural adjustment, family support, and repatriation issues. Many expatriate assignments fail due to lack of cultural preparation or homesickness (Black & Gregersen, 1999).

Practical Strategies to Manage Cultural Diversity

To manage cultural diversity effectively, international organisations need clear policies, strong leadership, and inclusive practices. Here are some suggested strategies:

1. Cultural Awareness Training: Educating employees about cultural differences to promote tolerance and avoid misunderstandings.

2. Inclusive Leadership: Hiring and promoting leaders who value diversity and can adapt their management style to different cultural settings.

3. Diverse Teams: Forming multicultural teams to encourage creative problem-solving and different viewpoints.

4. Flexible HR Policies: Adapting policies such as work-life balance, performance reviews, and benefits to suit local cultural expectations.

5. Feedback Mechanisms: Providing safe channels for employees to voice concerns related to cultural or workplace issues.

6. Use of Technology: Platforms like Zoom and Slack help overcome geographical and language barriers, promoting communication and collaboration.

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