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Cross Culture Management

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Case Analysis
Introduction
Multinational companies (MNC) are organizations that have facilitates and other assets in one or more than one countries aside than its own country. Thus, there are competitive and challenges of companies operating in different countries and the relevancy for multinational companies. Multinational companies could strengthen their business and also enhance customer service through involving their diverse workforce. It means that multinational companies could make use of cultural sensitivity, language skills, market knowledge and information of business networks at their own countries to drive business growth. (Nataatmadia & Dyson, 2005). However, multinational companies will also have some problems or challenges. Communication in multinational companies would be a lot more difficult because they employ employees from various countries. People from different countries have different cultures; this is the reason why this factor could cause them to fail to understand each another. Moreover, companies which operate in various languages areas will have difficulties at communicating with the local employees because they speak different language. (Kundu, 2001). SICLI have problem in coping with the new management style after the company was acquired by Williams Holdings PLC. This company is a multinational company because it operates in many countries. Moreover, the company also employs workers from various countries. This is why they need to find out what policies could help the company to minimize the problems.

Section A
Companies like SICLI or Williams Holdings PLC that operates in several of countries and employs employees from different countries should adopt some policies in order to prevent problems. To settle these issues, the CEO of SICLI or Williams Holdings PLC must adopt some policies which could help them to settle the problems that they are facing after the acquisition.

Diversity Management
The CEO should implement diversity management within the company. Diversity management is a process to bring about and keep a positive working environment which the differences and similarities of all the people are valued. If an organization able to manage diversity successfully, it will lead to better satisfied, more committed, potentially better financial performance and better performing employees for the particular organization. (Patrick & Kumar, 2012). The CEO should also make use of workplace diversity within the company; workplace diversity refers to the variety of differences among individuals in a company. Every multinational company should carry out diversity management so that all the people in the company could attain their potential and contribute as much as they can to the organization’s strategic objectives and goals. Moreover, diversity not just determines the results of the diversity in an organization but it also determines the level of openness to dissimilarity characteristics between the members, culture and work groups of the organization. (Patrick & Kumar, 2012). Employees with different voices with different orientations, priorities, backgrounds and perspective could help companies to identify business and succeed in new markets. (Agrawal, 2012). Trainings
The CEO should promote company policies, employee compliance and employee awareness by having appropriate dissemination of all these through training programmes. (OECD, 2008). They should provide diversity awareness training in order to help their employees from several of countries become aware of their stereotypes and prejudices and their own cultural boundaries. They should make it compulsory for all managers, employees or staffs of the company to attend the training programs. Diversity awareness training will help the employees to learn how to live and work together with people from different background. This would also help the employees able to deal with conflict at a constructive manner in order to decrease negative energy while working in a diverse or multinational company. During the programme they should explain the reasons behind and the benefits of the change of the management style to the employees. (Nataatmadia & Dyson, 2005). Providing training programs is one of the best ways to make the employees to know the culture of the company culture. (Zhou, Lu, & Jiang, 2005). Williams Holdings PLC should make sure that their employees had understood the company culture before they start to make a change in the management style. The training programme should also focus on enabling the employees to be familiar with the identity and culture with it thereafter step by step.

Cultural Mentor & Communication
Next, the company should also adopt effective communication manner. In order to implement this, they should hire cultural mentors to give instruction and supervision timely. The company should also hire some cultural mentors to help them because it will help them to solve the problems that they are facing after the acquisition. A cultural mentor is known as an individual or a group of people who serves as a role model to formulate a target. (Dike, 2013). Every company has its own “Company culture” which entails from different form of activities for many kinds of working post and the general guide to the company. The job of the cultural mentor is to help the older employees and the new employees to understand the culture in the new context. The cultural mentor has the duty to explain to the employees on how things are done within the company, and how behaviour should be interpreted. Williams Holdings PLC should invite or in some cases hire a person or a group of people to serve as the cultural mentors of the company. The mentor will be able to help the employees to realize their own potential in order to let them utilise it effectively. (Dike, 2013). The cultural mentor should first understand the culture of the company and then help the employees by making them able to communicate well with the management. Communication is effective at bridging the gap of difference; it is a two‐way process that consists of feedback and conveyance. (Zhou, Lu, & Jiang, 2005). The company should also let the cultural mentors to train and encourage the employees to give and receive feedback continuously regarding to the undesirable and desirable behaviours that the company want to change and encourage. The identification of these both behaviours must be based on the performance feedback discussions involving diverse workforce. (Kundu, 2001). In order to make this plan become effective, the communication must be conduct by the cultural mentors at real time, but first the company must also have a mature and strict management system because it could help a lot in avoiding misunderstandings to some extent among the management and the staffs. Communication can be considered as the most effective method to solve problems of misunderstanding. Conflicts and misunderstandings will be easy to settle if the management have face-to-face communication with all the staffs. (Zhou, Lu, & Jiang, 2005). This is why Williams Holdings PLC needs to pay high attention to communication because it is considered as an effective manner to solve problems such as culture conflicts, misunderstandings and differences that they are facing after the acquisition. Communication is a very important tool in enabling the managers and staffs to have the same understanding on aims and share right management ideas.

Appraisals
Next, the CEO should conduct 360-degree performance appraisal system within the company. By implementing 360-degree performance appraisal systems, it will provide the developmental instruments that are needed by the employees as a part of their overall performance evaluation process. Moreover, this will also help their managers or leaders to develop their leadership skill and management skill. (Herr, 1999). They should implement a dual approach to performance appraisal of employees who are in different managerial positions or from different countries but pursue a constant and uniform performance appraisal policy across national boundaries. (Shen, 2004). The performance appraisal should be relevant to the company and the jobs. Moreover, it also should be fair to every employee and give no special treatment (Schuler, Dowling, and DeCieri 1993). The managers that act as appraisal panels should be able to create fair performance appraisal practices and objective criteria. (Shen, Chanda, Netto, & Monga, 2009). The appraisal language should also just focus on the performance of the individual and not focus on their race or personality, when conducting the appraisal. (Fulkerson and Schuler 1992). Thus, Williams Holdings PLC should make the appraisal as culturally neutral as possible.

Financial & Non-Financial Benefit
Besides that, the CEO must also make some changes on the employees’ pay. Pay equality will contribute effectively to organizational performance and diversity management. Diversity management in monetary reward needs a whole application of the principle of equal pay and a performance-based pay system. (Shen, Chanda, Netto, & Monga, 2009). In order to have a good compensation structure, the company should design the benefit schemes and the wage determinants not only based on the common principles but also based on the ability, skill and knowledge of the individuals. The company must also facilitate the individual-driven monetary reward based on the individuals’ lifestyles and further promotes diversity. (Kramar 1998; Friedman and Holtom 2002). The issues of a major diversity management occur when the employee tries to balance his or her work life and family life. Regarding to these issues, Williams Holdings PLC should implement the flexible employment system because it is better than the traditional employment system. Employment flexibility will give freedom to the employees to choose their working schedule based on their own capacity. (Shen, Chanda, Netto, & Monga, 2009). The company must make sure that the flexible employment could provide a reasonable balance to the employees and also allows them to address important problems. Therefore, the company has to provide support services which able to help the employees to mitigate some issues that are relate with work-life balance.

Section B (Question 2)
The employees in SICLI or Williams Holdings PLC are required to work in teams, so it means that all of them will form multicultural teams. This is why the CEO need to know how to manage multicultural teams and what are the problems that might happen in these teams.

Reward
In order to manage those multicultural teams effectively the CEO should design team level rewards to be consistent with cultural norms. Reward is a very powerful factor that could motivate the team members in the multicultural teams because it provides needed feedback on what is appropriate behaviour. (Thomas, Ravlin, & Barry, 2000). The CEO should implement the hybrid reward system that emphasise on both individual and team contribution and performance. Besides that, the CEO could also consider on implementing team-based reward systems. It is very important to take into account on the individuals’ expectations about rewards. The expectations might come from how their previous company reward them, collective bargaining agreements or maybe the cultural norms for reward allocation. While implementing the team-based rewards system, it very important to have depth understanding on how individual from different culture would respond to different team-based rewards schemes and the values that are correlative with their own cultures. (Thomas, Ravlin, & Barry, 2000). This is why SICLI or Williams Holdings PLC must put substantial effort on their management in order to know the employees well.
Leadership
Leadership is a very important factor to teamwork. The leaders of multicultural teams should understand that globalization has different influences on countries and people. (Swanson & Holton, 2009). The responsibilities and job functions of the leaders in multicultural teams are much more difficult, this is why a flexible leadership style is needed. Therefore, the CEO must specific leadership development approaches for effective leadership in multicultural teams. In order to maintain the pace with the environment nowadays, leaders must have more interpersonal skills to handle challenges. Thus, the CEO should possess essential leadership skills in order to manage the teams effectively. The leaders of multicultural teams should appreciate the differences of the team members and also close cultural gap by looking at similarities. Moreover, the leaders must also avoid stereotyping and personal biases, and lead the members with respect. (Chuang, 2013).

Equalizing Power
A team could perform well if all the members participate. Moreover, the team also could generate more good ideas if all the members participate in team discussions or meetings. Cultural dominance is thence counterproductive because is stifles no dominant the contribution of the team members. (Kiteleja, 2012). In order to manage multinational teams, the CEO must guard against vesting disproportionate power in members that come from countries which is more technologically advanced or economically developed, the members from the host country, or the members who are same nationality with the employing companies. The CEO should manage the power distribution within the teams according to the members’ ability to complete the tasks, not manage it according to certain preconceived gradient of relative cultural dominant position.

Motivation
In order to motivate the members in multicultural teams, the CEO must interpret the situations accurately. Leaders must not misinterpret the speaking of a foreign language within the workplace as a sign of disrespect, rudeness, and laziness. Using other languages in the workplace can be view as an effort to quicken the communication process and an effort to communicate the job-related message accurately. Moreover, the CEO must explain their expectations to the members in the way that everyone could understand. The CEO also could motivate the members by giving them positive reinforcement. Kind words from the leaders could help in affirming the value of people of any culture. (Luthans & Doh, 2014).

Communication
Communication is a very important factor in any kinds of teams. Communication must be customized to the particular cultures involved in multicultural teams. Effective communication will helps to build strong relationships among team members. In order to manage multicultural teams effectively the CEO need to set clear expectations and also encourage the members to exchange ideas with each other in the team. Regular communications in multicultural teams could enhance consistent goals and also make sure that every member is on the same page. During the same time, the CEO or the leader of the team should learn how to listen, accept and address input from the members.

Problems of Multicultural Teams and Working across the countries
- Communication Problems: Inaccuracy, Misunderstanding, and Inefficiency
Usually communication problems will occur in diverse workplace and multicultural teams because they have employees or members from different countries. The communication between members will slow down when the members do not speak the team’s language fluently. Within linguistically multicultural group, some of the members must speak their own language or use an interpreter. These will cause the speed of the communication to slow down, the increase management errors and misunderstanding between members, just like what had happen in Williams Holdings PLC after the acquisition. (Kiteleja, 2012). Moreover, communication problems will also influence the team’s performance and causes inefficiency. It will slow down the productivity of the company.

- Losses Due to fault process in culturally diverse team
Diversity will cause the functions of the team to become more challenging because the members will find it quite difficult to act, see and understand on situations in similar ways. Diversity could cause difficulties in reaching agreement. The members that are from similar cultures will find it easier to trust and communicate with each other. On the other hand, in multicultural teams, problems such as miscommunication, misunderstanding, misperception and misinterpretation will often happen. (Kiteleja, 2012). All these happen because the multicultural teams’ members often disagree with the appropriateness of relevant information, expectations, and the needs for some decisions. Just like the employee from SICLI could not accept the change in the management style. The members of multicultural teams usually will experience higher level of stress than members in homogeneous teams. Diversity can increase inherent confusion, complexity, and ambiguity in team process. Conclusion
In conclusion, Williams Holdings PLC must adopt some policies in order to solve the problems that occur after the acquisition. The CEO must understand that what type of policies could help the company to settle the problems. Besides that, the CEO must also know the ways to manage multicultural teams and what to take into account while forming those teams. Moreover, they also need to know what are the problems or difficulties could be expected when working across countries and in multicultural teams.

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