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Final Group Project on:

Approaches to Managing People in Different Countries and

Business Cultures.

Submitted to

Dr. Irina Onyusheva

Submitted by

Harashdeep Grover 2101260001

Karan Mehta 015171008

Worapan Morawan 2104270004

Knakorn Piulueangsawat 2105130005

Section 88

STAMFORD INTERNATIONAL UNIVERSITY

MASTER OF BUSINESS ADMINISTRATION


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Glossary of terms

Here are some clarifications on the concepts and terms used in this report. The

descriptions of these terms define the actual concepts that are interpreted in this

report. It is to avoid any misunderstandings or misinterpretations.

1. Management: People management is the process of educating, encouraging,

and directing personnel to increase workplace efficiency and professional

development. People management is used by workplace leaders such as team

managers, supervisors, and department heads to control workflow and

improve employee performance daily.

2. Culture: Is a social pattern that has been passed down through generations in

society. It decides what's important and what's not, what's right and wrong,

what's acceptable and what's not. Values, conventions, and customs, whether

explicit and implicit, are all part of the culture. Attitudes, beliefs, habits, and

assumptions are all factors to consider in this scenario.

3. Cultural diversity: The cultural diversity that exists in the world, society, and

organizations among people of various racial or ethnic backgrounds.

4. Organizational culture: It consists of standards and ideals that bind an

organization together. It is founded on a set of agreed values, attitudes, and


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regulations. The way an organization treats its employees, customers, and does

business is influenced by its culture.

5. Globalization: Integration and interaction of governments, companies, and

people from different countries, directed by information technology,

international trade and international investments.

6. Organizational performance: Activities or tasks carried out by a person or a

group within an organization, as well as the degree of success with which that

action or assignment was carried out.


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TABLE OF CONTENTS

GLOSSARY OF TERMS ............................................................................................ 1

ABSTRACT .................................................................................................................. 4

1. INTRODUCTION.................................................................................................... 5

1.1 BACKGROUND........................................................................................................ 5

1.1.1 Impact of globalization .................................................................................. 6

1.2 LITERATURE REVIEW ............................................................................................. 7

1.3 MEASURING KEY DIMENSIONS OF CULTURE ......................................................... 14

2. METHODOLOGY ................................................................................................ 16

2.1 RESEARCH PROBLEM............................................................................................ 16

2.2 RESEARCH OBJECTIVES ........................................................................................ 16

2.3 RESEARCH METHODS .......................................................................................... 17

2.3.1 SWOT analysis ............................................................................................. 17

2.3.2 5 forces of porter .......................................................................................... 20

2.3.3 Key research results ..................................................................................... 24

3. DISCUSSION & CONCLUSION......................................................................... 27

4. REFERENCES....................................................................................................... 30
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Abstract

Globalization has connected multinational companies by the process of integration and

interaction resulting in a more culturally diverse workforce. Diversification of Culture

has caused a rise in conflicts among the workforces. Hence the purpose of this report is

to discuss on the management of cross-culture and how the issues within these areas

can be reduced. This report provides some background information on cultural diversity

and its impact on global organizations. The value and relevance of why the chosen

subject requires more research are discussed in this report. The problem will be defined,

as well as the purpose, research question, and delimitations.


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1. Introduction

1.1 Background

Globalization has resulted in the world becoming more integrated, organizations now

have greater opportunity to expand globally. As the global economy has widened, so

has the number of multinational organizations, resulting in a more ethnically varied

workforce in businesses. Today, the global corporations have their workforce

consisting of a diversification of ethnical and cultural parts since they are operating in

several different countries. As a result of cultural diversity, there has been a rise in

knowledge on how to manage cultural adaptation. Organizations are interested in

learning more about the advantages of localization (Magala, 2005, p. 61).

The growing interest in how a cross-cultural workforce affects the workplace

has prompted firms to pay more attention to how they develop competency in this area.

Managers may presume that employees in the same worldwide organization will

behave the same way, even if the employees come from various countries. When

communicating with international clients, national culture is by far more crucial than it

was when interacting with colleagues within the firm (Adler & Gundersen, 2008, p.

63). According to Hofstede (1984, p. 30-31), organizational culture is influenced by

national culture as it affects managerial methods.

The perspective on managerial issues and managerial ideology of an

organization is influenced by the multicultural background of its employees (Kundu,

2001). The way people think and act is undeniably influenced by culture. Organizations

must be open and adapt to a diversified business environment as a result of globalization


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(Adler & Gundersen, 2008, p. 8). Low performance and organizational inefficiency

may come from a culturally diversified workforce (Granovetter, 2005).

On the other hand, misunderstandings within the culturally varied workforce

can lead to a variety of confrontations. As a result, because diversity is considered as a

factor of success, it is critical that firms establish an effective approach to manage it to

obtain a competitive advantage (Stevens & Ogunji, 2011; Kundu, 2001).

Companies all over the world are always pushed to rethink their strategy and

keep their workers up to date in order to stay up with the constant shift in demand.

Because workplaces are becoming increasingly multicultural, it is critical to

comprehend diversity to operate as efficiently as possible (Isaac, 2003).

The probability of internal misconceptions is high if diversity isn't managed

properly, it's more likely that you won't reap the benefits and won't be as efficient as

you could be (Isaac, 2003). This underlines the need of understanding cultural diversity

and using labor force variations as a competitive advantage. As a result, any company's

ability to manage a multicultural staff is becoming increasingly important.

1.1.1 Impact of Globalization

Cultural transitions around the world have become a common occurrence in this age of

globalization. Considering cultural divergence and convergence, it is necessary to

assess whether globalization has resulted in greater cultural convergence than before

(Flynn, 2009). Globalization is defined as "the inexorable integration of markets,

nation-states, and technologies to a degree never seen before - in such a way that

individuals, corporations, and nation-states may reach around the world further, deeper,
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and cheaper than ever before" (Flynn, 2009 p. 1). It has been stated that globalization

modifies the norms and values in any culture as societies transition from a traditional

scenario to a more modern and open culture (Molnar, 2007).

Cultural differences do play a major role in affecting the relationship,

commitments, team decision-making and other social interactions. Hence, globalization

will result in a rise in diverse workforce which can be viewed as an advantage for firms

to exceed prosperous performance (Stevens & Ogunji, 2011). If cultural diversity is

properly managed, organizations will then be able to reach competitive advantage

(Stevens & Ogunji, 2011).

1.2 Literature Review

Cultural Variation in Approaches to Managing People

In this international age of business where firms operate in many different parts of the

globe, it is important to note that approaches to management may differ across

cultures. Potential managers should seek to adapt to the different cultural practices of

the host country to better manage their workforce and achieve productivity.

Here are some examples of how people management takes place in different

countries:

1. Argentina

Argentine managers win over their staff with a combination of intellectual

argument and openly friendly stance.

2. Australia
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The Aussies want their boss to join them in a healthy disrespect for rules and

formalism, to lapse into broad speech and cuss a bit, to be affable and ironic at

the same time, and to avoid flowery or obscure expressions.

3. Austria

Austrian managers use a combination of folksy Austrian-accented German and

sophisticated French loan-words.

4. Brazil

Brazilian managers are very concerned with coziness and cheerfulness,

freedom of expression and extroversion, and sometimes racial harmony.

5. Canada

Canadian managers use a low-key and humorous tone as a tool for motivating

laid-back, calm, modest, tolerant staff.

6. China

Chinese managers rely heavily on Confucian precepts. Also, politeness and

courtesy are mandatory.

7. Czech Republic

In Czech management, reasoning and logic predominates. Also, humor is very

frequent and welcoming.

8. Denmark

Danish excels in confiding, almost conspiratorial tones which allows the

manager to share ideas in a closely confidential manner with colleagues.

9. Estonia
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Estonian managers address their staff in a very factual manner, though

elegance of vocabulary is admired.

10. Finland

Finnish bosses can be cold, terse, and factual in one mode, then switch to a

richer, more flowery one when it suits their purpose.

11. Germany

Germans like receiving detailed information and instruction to guide them.

12. Greece

The Greek management style is typified by loquacious and eloquent leaders.

13. Hispanic America

Hispanic American managers tend to soften the delivery and the message to

show understanding of human problems.

14. Hong Kong

Cantonese, the language of management in Hong Kong is essentially a

language of commerce and is consequently faster, blunter, and more factual

than most Chinese dialects.

15. Hungary

Successful Hungarian managers are expected to have mastery of the language,

which is rich in imagery.

16. India

The language of the Indian manager emphasizes the collective nature of the

task and challenge.


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17. Indonesia

Indonesian is a respectful language, and managers motivate staff with such

softness.

18. Iran

Iranian managers offer help where needed, have bottom line focus, and give

staff members as much freedom as possible to prosper.

19. Ireland

Irish leaders apply a poetic touch to their dialogue and command allegiance

through a skillful combination of ironic humor, subtle references, and

reasonable proposals.

20. Japan

Japanese managers rarely issue clear orders. They only hint at what has to be

done.

21. Kazakhstan

Kazakh leaders preach a more relaxed form of Islam than the others and their

close oil-related involvement with foreigners has encouraged pragmatism and

a more international outlook.

22. Korea

Korean managers are authoritarian and direct and "beat about the bush much

less than Japanese or Chinese.

23. Latvia
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Latvian managers address staff in a cool, measured manner. They like to mix

optimism with realism.

24. Lithuania

Lithuanian is a rich, expressive language, enabling managers to revel in its

aesthetic, archaic constructions.

25. Netherlands

The Dutch manager has a tough, but give-and-take style.

26. Norway

The energetic and distinctive tones of the Norwegian language serve to link

managers more closely to their staff.

27. Pakistan

The language of the Pakistani manager emphasizes the collective nature of the

task and Islamic solidarity.

28. Poland

Managers may use facts and figures to motivate, but the key to the Polish

heart is sentimental romanticism.

29. Portugal

Portuguese managers use their language skillfully to create an impression of

deep human understanding.

30. Russia

Russians respond favorably to a personal, almost conspiratorial, approach.

31. Saudi Arabia


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In Saudi Arabia (and other Arab countries), a good manager is a good

Muslim. The language used will make frequent references to Allah and align

itself with the precepts of the Koran.

32. Scotland

Scot leaders address subordinates in an inspirational, commanding, yet folksy

manner. Their speech is direct and crisp, and orders are clear.

33. Serbia

Serbian managers use the rhetoric of the Serbo-Croat language, which is

persuasive, manipulative, and effectively coercive to mold behavior.

34. Slovakia

Slovak managers sell their ideas softly but with tenacity.

35. Slovenia

Slovenian managers tone down emotion and substitute logic and reasoning.

36. Spain

Spanish managers' discourse leans on emotive content. They woo, persuade

and cajole.

37. Sub-Saharan Africa

Sub-Saharan African managers use the powers of oratory, symbolism, and

ability to call on the influence of ancestors to manage effectively.

38. Sweden
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The Swedish language tends to stratify managers at the same level as their

colleagues because it heavily uses the informal ‘du’ form (second-person

singular pronoun).

39. Switzerland

Swiss managers address their subordinates in four different languages, but all

styles share Swiss reserve, caution, and common sense.

40. Thailand

Thai leaders are expected to be kind to subordinates and will command their

loyalty by taking into consideration their needs and desires.

41. Turkey

Turkish managers are strong and decisive when dealing with their own

people.

42. Ukraine

Ukrainian managers motivate staff in speech which has elements of emotion,

fluency, and vibrancy.

43. United Kingdom

In the UK, particularly England, managers use friendly small talk, humor,

reserved statements of objectives and a very casual approach to getting down

to work.

44. United States of America


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American managers are viewed in a positive and sympathetic light, as one of

the figures responsible for the nation's speedy development and commercial

services.

45. Uzbekistan

Moralistic doctrine is a priority in Uzbekistan, though they let little stand in

the way of doing business.

46. Vietnam

Vietnamese leaders adhere closely to socialist themes, which affects

management style.

47. Wales

Managers address their staff in a folksy way without any trace of superior airs.

Also, there is generally a lot of human contact between Welsh managers and

their staff.

(Richard Lewis Communications)

1.3 Measuring Key Dimensions of Culture

To measure the potential effects of culture on the behaviour of said culture’s firms

and managers, Geert Hofstede (2001), while working for IBM in the late 70s and

early 80s, identified six key dimensions of culture that could be measured through use

of survey data and indexed values, namely.

Time Orientation (Long Term vs Short Term): a measure of the extent to

which each society values history, heritage, and tradition whether it prefers to uphold

traditional values and is more resistant to new ideas and technology (Long Term
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Orientation) or whether it is more fluid, less focused on the past and more open to

change (Short Term Orientation).

Power Distance (High vs Low) which measures how well the society in

question handles uneven distributions of power whether it is generally accepted and

understood as a fact of life (high power distance) or whether it is held to be deeply

unfair, unnatural, and something to be railed against (low power distance).

Individualism vs Collectivism: a measure of the extent to which a sense of

community and collective responsibility exists, and whether it is thought to be more

important than individualist beliefs and desires. Individualist societies tend to value

independence, privacy, and personal fulfilment, while collectivist societies tend to

value group interdependence and repression of personal ambition when it is

misaligned with communal values.

Uncertainty Avoidance (Weak vs Strong) which measures the extent to which

each society is comfortable dealing with risk, uncertainty, and ambiguity societies

with high degrees of uncertainty avoidance tend to be highly regulated and value

careful planning and structure, while societies with low degrees of uncertainty

avoidance tend to be more pragmatic and accept change and risk as factors of life.

Masculinity vs Femininity: a measure of societal gender differentiation in

‘masculine’ cultures, gender roles are highly differentiated and society as a whole

place’s higher values on competition, ambition, and personal achievement whereas in

‘feminine’ societies gender roles are less starkly defined and more equal, and society
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tends to place higher values on relationship building, modesty and group harmony

(Hofstede and Minkov, 2010)

2. Methodology

2.1 Research Problem

To determine the gaps in cross-cultural management, leading to challenges faced by

the employees and employers while understanding the impact of communication in

the management.

2.2 Research Goal/Objectives

To understand the working of organizations in a cross-cultural environment and the

challenges they face on a global scale with an ever-expanding workforce. Team

building at this scale is not simple and there are numerous hurdles that the

management and corporations face, to overcome them. the companies implement

multiple strategies and understanding how these strategies work the main goal is.

• To understand the hurdles with team formation in a cross-cultural

environment.

• To determine the effectiveness of team building exercises in cross-cultural

environments.

• To understand if stereotypical behavior causes hindrance in achieving success

with a multicultural team.


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2.3 Research Methods

Here is the case study for SWOT analysis of Telenor ASA, a Norwegian majority

state-owned multinational telecommunications company. It is one of the world's

largest mobile telecommunications companies with operations worldwide.

The culture at Telenor is top-down, the top employees establish the culture of

the organization. The top-level employees take good care while performing, because

it will have to be followed by the subordinates. Things are properly informed. There is

no means of getting misinformation.

Therefore, if we summarize the culture of Telenor we have come to know that

the culture of Telenor is formal and is its flexible and it is suitable for their employees

and there are formal and some official rules are there which are to be followed for the

betterment of the organization and the HR department of the Telenor hires the

appropriate and good employees and they are skilled person they do their job well.

Roles and responsibilities are clearly defined at the time of joining the

organization; employees are selected against defined criteria. Roles can be added later

but employees have a fair idea about their job responsibilities from the beginning.

2.3.1 SWOT analysis

A detailed SWOT Analysis of Telenor is as follows:

• STRENGTH

- Multinational company

Telenor is a multinational company. It has big investments and a strong

company culture. It has built a culture among distributors & dealers where the
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dealers not only promote the company's products but also invest in training the

sales team to explain to the customer how he/she can extract the maximum

benefits out of the products.

- Strong Brand Portfolio

Over the years telenor has invested in building a strong brand portfolio. The

SWOT analysis of telenor just underlines this fact. This brand portfolio can be

extremely useful if the organization wants to expand into new product

categories.

- Reliable suppliers

It has a strong base of reliable suppliers of raw material thus enabling the

company to overcome any supply chain bottlenecks.

- Highly skilled workforce through successful training and learning

programs

Telenor is investing huge resources in training and development of its

employees resulting in a workforce that is not only highly skilled but also

motivated to achieve more.

- Financial strength

Being a multinational company, Telenor has a good fund to compete with its

competitors like Mobilink and Ufone etc.

• WEAKNESS

- Day’s inventory is high compared to the competitors

Making the company raise more capital to invest in the channel. This can

impact the long-term growth of Telenor.

- Inefficiency and poor network service of another network


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Poor network service by the other network is an opportunity for Telenor. If

Telenor is going to continue their good service, then its customer is going to

be increased.

- Financial planning is not done properly and efficiently.

The current asset ratio and liquid asset ratios suggest that the company can use

the cash more efficiently than what it is doing at present.

- The challenges presented by the new entrants

The company has not been able to tackle the challenges presented by the new

entrants in the segment and has lost small market share in the niche categories.

Telenor must build internal feedback mechanisms directly from the sales team

on ground to counter these challenges.

• OPPORTUNITIES

- Opening up of new markets because of government agreement

The adoption of new technology standards and government free trade

agreement has provided Telenor an opportunity to enter a new emerging

market.

- Economic uptick and increase in customer spending

After years of recession and slow growth rate in the industry, is an opportunity

for Telenor to capture new customers and increase its market share.

- New trends in consumer behavior can open new markets

It provides a great opportunity for the organization to build new revenue

streams and diversify into new product categories too.

- New environmental policies


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The new opportunities will create a level playing field for all the players in the

industry. It represents a great opportunity for Telenor to drive home its

advantage in new technology and gain market share in the new product

category.

• THREATS

- Political instability

This political instability is a threat if the government brings changes in the

new policies which might not be in favor of the telecom industry.

- Public pay phones and calling cards usage where network is not

available

It is a big threat to the company as it cuts down the company's profit.

Moreover, people can even shift to another network that has coverage in those

areas.

- No regular supply of innovative products

Over the years the company has developed numerous products but those are

often in response to the development by other players. Secondly the supply of

new products is not regular thus leading to high and low swings in the sales

number over a period of time.

2.3.2 Porter’s five forces

Here is an example of the case study for Michael E. Porter’s Five Forces of

McDonald’s, an American fast-food company. McDonald’s Corporation expands

internationally through strategies that account for the external factors in the industry

environment, as identifiable through a Five Forces analysis of the business. Michael


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E. Porter’s Five Forces Analysis model provides valuable information to support

strategic management, especially in addressing relevant issues in the external

environment of the business.

These issues are based on external factors that represent the degree of

competitive rivalry in the industry, the bargaining power of customers or buyers, the

bargaining power of suppliers, the threat of substitution, and the threat of new

entrants. In this Five Forces analysis of McDonald’s, the forces are mainly within the

fast-food restaurant industry. As the leading restaurant chain business in the world,

the company is an example of effective strategic management, especially in dealing

with competition in different markets worldwide. This status shows that McDonald’s

strategic direction is appropriate to the external factors, such as the ones identified in

this Five Forces analysis.

In addressing the external factors determined in this Five Forces analysis,

McDonald’s Corporation ensures that its strategies are appropriate to combat external

forces. The company faces pressure from various competitors, including large

multinational firms and small local businesses.

A detailed Porter Five Forces Model Analysis of McDonald’s is as follows:

Competitive Rivalry – STRONG

The fast-food restaurant is one of the most competitive businesses today. With so

many multinationals as well as local restaurants that have almost the same menus, the

competition is becoming intense with each player in the industry striving for market

share. There is a certain level of saturation that has developed. The competitors of

McDonald’s are other fast-food restaurants such as Wendy’s, Burger King, Johnny
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Rockets, and it could be local restaurants in some countries as well. Each player is

aggressively spending on advertising, innovating in their deals and menus, and

continuously opening new franchises to increase their access to new potential

customers. The increase in the number of competitors has made competitive rivalry

for McDonald’s a strong force.

Bargaining Power of Suppliers (Supplier Power) – WEAK

The raw materials such as chicken and potatoes that McDonald’s uses for its products

are available through many suppliers. Also, the orders of McDonald’s are massive on

a routine basis. There are many suppliers that are willing to become its suppliers.

Thus, the suppliers are in no position to bargain with McDonald’s or attempt

to force it to increase its prices. McDonald’s can easily switch suppliers with little

switching cost. Therefore, the bargaining power of the suppliers is a weak force for

McDonald’s.

Bargaining Power of Buyers (Buyer Power) – STRONG

The buyers of McDonald’s have many options available in the market today. They

can easily switch from one restaurant to another without any switching cost if they are

unsatisfied. Loyal customers of fast-food restaurants are decreasing day by day with

so many competitors. The buyers can easily protest any price increases by

McDonald’s and shift to other competitors. (Gregory, 2017). This puts the buyers in a

strong position of bargaining to influence McDonald’s to retain its prices if it wants

return customers. Therefore, bargaining power of buyers is strong.


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Threat of Substitutes – STRONG

The substitutes of meals of McDonald’s are meals of other slightly different fast-food

restaurants such as KFC, Pizza Hut and it could be home cooked meals. Bakery

products are also substituting of McDonald’s products. Most of these substitutes are

competitive in terms of customer satisfaction and quality. Switching to them does not

have any associated switching costs. Also, many health concerns have been raised

against the products of McDonald’s causing customers to switch to other healthier

substitutes (Sweet, 2014). For this reason, the threat of substitutes is a strong force

against McDonald’s.

Threat of New Entrants – MODERATE

On the international level, the threat of new entrants is a weak force as there are many

entry barriers. The entrant would have to create many outlets throughout the world

which requires a massive capital investment and time, quickly establish economies of

scale to become profitable, gain access to suppliers of meat and other raw materials

and carry out extensive marketing to create awareness among customers in order to

become a successful competitor of McDonald’s. This makes it difficult for new

entrants to step in and produce competition. However, the same threat is higher on a

scale where the investment is not high, two or three outlets are enough, and

economies of scale are easily established. These local outlets can give competition to

McDonald’s easily. Therefore, this is a moderate threat for McDonald’s.


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2.3.3 Research Results

Example of case study results on:

Statistics of Workforce Diversity at Multinational Companies

First, Esty, Inc. is an American e-commerce company focused

on handmade or vintage items and craft supplies. These items fall under a wide range

of categories, including jewelry, bags, clothing, home décor and furniture, toys, art, as

well as craft supplies and tools. All vintage items must be at least 20 years old. Most

sellers are women, who tend to be college-educated and in their twenties and thirties.

Here are the graphs that show Distribution of Etsy Inc. employees worldwide

as of December 2020, by gender and Distribution of Etsy Inc. employees worldwide

as of December 2020, by gender and department.

1. Distribution of Etsy Inc. employees worldwide as of December 2020, by gender

Etsy: global corporate demography 2020, by gender

60%
47.7%
50% 45.3%
Share of employees

40%

30%

20%

10% 7%

0%
Female Male Other (self-reported) / not
declared
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2. Distribution of Etsy Inc. employees worldwide as of December 2020, by


gender and department

Etsy: global corporate demography 2020, by gender and department

70% 63%
60%
Share of employees

50%
40%
30%
17.5%
20%
10% 3.8% 5.9% 6.1% 3.4%
0.1%
0%
White Asian Not Black or Hispanic Two or American
declared African more races Indian or
American Alaskan
Native

Second, Facebook is an American online social media and social networking

service owned by Facebook, Inc. Since Facebook is one of the most widely used

social medias, there are employees working for the company from across the world.

Here are the graphs that show Distribution of Facebook employees worldwide

from 2014 to 2020, by gender and Distribution of Facebook employees worldwide as

of June 2020, by gender and department.


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3.Distribution of Facebook employees worldwide from 2014 to 2020, by

Facebook: global corporate demography 2014-2020, by gender

Male Female

80%
69% 68% 67%
70% 65% 63.7% 63.1% 63%
Share of employees

60%
50%
35% 36.3% 36.9% 37%
40% 32% 33%
31%
30%
20%
10%
0%
2014 2015 2016 2017 2018 2019 2020

4. Distribution of Facebook employees worldwide as of June 2020, by gender and departme

Facebook: global corporate demography 2020, by gender and department

Male Female

80% 75.9%

70% 65.8%
58.5%
60%
Share of employees

50%
41.5%
40% 34.2%
30% 24.1%
20%
10%
0%
Tech Senior level Non-technical
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3. Discussion

The diversity of the varying nations and cultures creates a noticeable clash and

misunderstandings. Each culture has their own variance of these factors, time

orientation, power distance, individual vs collectivism, uncertainty avoidance,

masculinity vs femininity, communication, and expression. There are several varieties

of culture.

Thus, for effective companies to manage people of varying countries and

business cultures and ethics they must incorporate their own culture to not only

streamline but homogenize and bring together various groups of differing cultures to

adhere to the corporate culture. This is already shown in the case study conducted

upon Telenor ASA which is one of the world’s largest telecommunication companies.

In the case study, it is shown that Telenor ASA manages to keep its culturally and

nationally diverse workforce productive by being a company that has both a formal

and flexible corporate culture. This means that there is a strict formality in how things

are done and has a more established power distance in terms of clearly defined roles

and responsibilities. It also incorporates a more masculine aspect by encouraging

competition and ambition which is shown in the way Telenor hires competent and

skilled individuals who are the best fit for their jobs.

By introducing a defined corporate culture with its own rules, regulations, and

standards it gives people from varying cultures a single unifying concept to follow.

This means that disregarding all other personal cultures and preferences, those who

work for and adopt company culture embrace the corporate culture, thus making them

apart of its ‘family’. This not only strengthens the relationships between coworkers
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but also helps to bridge any difference in personal cultures, which means that no

matter where one goes or who they meet, all adhere to the same corporate culture.

That helps to streamline and make not only communication but work ethics to

function on the same stream. For instance, this study by (Lauring, 2011) shows that

corporate culture helps to improve intercultural organizational communication.

Showcasing that the above points hold merit and validity as national differences often

get in the way of communication but by having a corporate culture it helps to unite

and link the two.

Another notable thing from the case study is that it is a very top-down method

of leadership and culture. With clear channels of communication and proper, clearly

defined information handed out it helps to reduce uncertainty and standardizes

communication and expression, further reducing the nuances due to formality as

sarcasm and other figures of speech are thrown aside for simple and clear-cut

information. It works both ways as well, in terms of international companies'

communication with local people as shown in this study by (G, 2018), it defines the

varied labour forces as best performing when companies help to clearly communicate

by removing nuances and sticking to plain formality.

Furthermore, for companies to better understand and manage people,

understanding the goals and aspirations of their workforce can also determine the

right method of motivation. Each person is motivated differently based on their

culture. It varies from country to country, but in general by having a company that

grades an individual based on their personal aspirations can greatly help find the right

carrot to be placed upon the stick (Lauring, 2011).


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4. Conclusion

It’s determined that through better understanding and by establishing one’s own

corporate culture to be the standard and having employees follow it closely. It helps to

reduce the nuances of expression and communication, by having clear deadlines it

also eliminates the tendency of varied time orientation, and by having a formality in

communication it keeps information transmitted in a simple and easily understood

manner.

This helps to streamline and therefore assist in managing a workforce by

having a system already understood by the company to better police and manage it.

Thus, with organizational culture, it is something that is flexible like Telenor ASA

helps to be inclusive of different cultures while also keeping to formality that means

that though it can be flexible and inclusive it has a formal grade which helps with

understanding communication differences in expressions and traits like cynicism.

Which means that to best manage people from different backgrounds and

cultures, is by setting up a sensible management system where cultural diversity can

benefit the organization with their goals. As, cross cultural management is becoming

more significant with the rise of multinational companies where effective integration

of cross-cultural workforce management is required. Setting certain functions and

systems can help in collaboration of people with different cultural background in

working towards the common goal.


30

5. BIBLIOGRAPHY

• Adam Kasi (2017, September 9). Porter Five Forces Analysis of McDonald’s.

Retrieved from: https://www.porteranalysis.com/porter-five-forces-analysis-

of-mcdonalds/

• Anonymous (2021, February 10). Du-reformen. Retrieved from:

https://en.wikipedia.org/wiki/Du-reformen

• Anonymous (2021, June 11). Telenor. Retrieved from:

https://en.wikipedia.org/wiki/Telenor

• Dartey-Baah, Kwasi. (2013). The Cultural Approach to the Management of

the International Human Resource: An Analysis of Hofstede’s Cultural

Dimensions. International Journal of Business Administration. Vol. 4. 39-45.

10.5430/ijba.v4n2p39.

• Fern Fort University (n.d.). Telenor SWOT Analysis/Matrix. Retrieved from:

http://fernfortuniversity.com/term-papers/swot/1433/1187-telenor.php

• Gallant, M (2013), The Business of Culture: How Culture Affects Management

Around the World [Online], Available;

http://www.halogensoftware.com/blog/the-business-of-culture-how-culture-

affects-management-around-the-world

• G, S. (2018). Successful Intercultural Communication in Local Organization.

Journal Of Tourism & Hospitality, 07(05). doi: 10.4172/2167-0269.1000386


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• IPL (n.d.). Swot Analysis of Multinational Company. Retrieved from:

https://www.ipl.org/essay/Swot-Analysis-Of-Multinational-Company-

P3EU4KKRCED6

• Kathleen Elkins (2015, March 5). These fascinating diagrams reveal how to

manage people in different countries. Retrieved from:

https://www.businessinsider.com/how-to-manage-people-in-other-countries-

2015-3

• Lauring, J. (2011). Intercultural Organizational Communication: The Social

Organizing of Interaction in International Encounters. Journal Of Business

Communication, 48(3), 231-255. doi: 10.1177/0021943611406500

• Lawrence Gregory (2018, September 1) McDonald’s Five Forces (Porter’s

Model) & Recommendations. Retrieved from: http://panmore.com/mcdonalds-

five-forces-analysis-porters-model

• G, S. (2018). Successful Intercultural Communication in Local Organization.

Journal Of Tourism & Hospitality, 07(05). doi: 10.4172/2167-0269.1000386

• Lauring, J. (2011). Intercultural Organizational Communication: The Social

Organizing of Interaction in International Encounters. Journal Of Business

Communication, 48(3), 231-255. doi: 10.1177/0021943611406500

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