AMID

ERNATI
AL
MPANY
Pyramid International Company

Table of Figures

Figure 1: Components of a transformational leadership.......................................................................5

Figure 2: Lewin's 3 step change management model............................................................................6
Figure 3: McKinsey 7 S model................................................................................................................7
Figure 4: Hofstede's five dimensions of cultural differences.................................................................7
Figure 5: Components of emotional intelligence...................................................................................8

1|Page
Pyramid International Company

Pyramid International Company which is a global multinational corporation resulting out of cross-
border M & A is facing the same dilemma in the current scenario. The article will discuss the main
challenges faced by PIC on account of labour mobility and the resulting differences arising language,
culture and other factors. This will be followed by strategies that can make working at PIC more fun.
The challenges faced with HR processes like recruitment and international deployment will be
discussed along with few frameworks to tackle the same. In recent years, transformational
leadership has emerged as an effective method for transcending the overall work culture beyond the
self-interests of the individual members and inculcating a sense of greater responsibility. The
effectiveness of the method in dealing with the current scenario will be discussed against a universal
approach to leadership. Frameworks will used to help managers guide expatriates adapt to the
foreign culture. Also, the article will try to give shape to ways in which the diversity at PIC can be
turned to its advantage with the help of few other frameworks. There will be a holistic
understanding of the challenges faced by the MNC and the effective usage of emotional intelligence
to enhance employee motivation.

A few years ago, organisations were mostly local. Interaction was between employees from the
same geographical region and were culturally alike. Hence, they had very similar ways of
communicating with each other and arriving at a consensus. However, with globalization and the
peripheries of the organisation spreading across the geographical boundaries of the country,
cultures that were taken for granted begin to break down. When employees move across
international borders and begin working in a multicultural environment, the possibility of
miscommunication increases and misunderstanding and inefficiency steps in. Such a setting makes
implicit communication ineffective. Employees fail to understand the body language of their
colleagues due to a difference in cultural background. When employees are working in a
homogeneous setting for a long time, most of the communication that takes place is implicit. For
instance, an employee can infer certain things from the expressions or signals given off by another
employee. This will not be possible in a newly established multicultural environment.

Also, employees get divided into different groups based on culture or language. It is only natural that
people sympathise more with those who are from the same region or speak the same language. This
has tendency to create gaps in communication within the same office or between offices established
in different regions. A negative impact is created on organisations where success depends on a great
deal of consultation between employees. Often the corporate culture might clash with the local
culture. Some organisations might be following a strong culture of open feedback and confrontation.
However, this might cause disharmony if the local culture is hierarchical with more value laid on
relationships. If the culture of the company is the sole reason for its success, then the employees

2|Page
Pyramid International Company

hired should be such that they can easily fit into the company culture and trained to behave in a
globally accepted manner. Language is a barrier which might make it difficult for employees to
articulate their ideas freely. Working under these constraints, an employee’s productivity is bound to
be affected.

At the same time, the standard of living in the country where an employee is allocated also needs to
be considered while deciding the remuneration, as it might differ drastically with the previous
location. The tax regulations in the new locations should also be factored in. These are some of the
challenges which be faced during cross-border recruitment or international deployment. The
recruiters may choose a staffing method based on the requirement of the organisation. If a company
wants to retain its strong culture in its regional offices also, those candidates will be recruited who
can adapt easily to a different culture. Certain units of the organisation rely heavily on creativity,
hence while recruiting for those verticals, focus must be laid on keeping the job descriptions flexible
and bringing in candidates offering a wide range of skills. It is inevitable for a company to adapt to
the local norms. Hence, everyone should be trained in key corporate as well as local norms.
Heterogeneity should be maintained in all departments. Steps should be taken to maintain diversity
in terms of gender, age and nationality. For instance, if 99% employees working in HR department in
US office are American or if 98% if the employees in marketing department are women, it may give
rise to one of the issues mentioned earlier.

Research has shown that leaders with some sense of humour are 27% more motivating than others
(Aaker et al, 2021). Effective leaders usually have employees who are more engaged. A pleasant
workplace also contributes to better physical and mental health which altogether leads to an
improvement in performance. A fun culture at workplace leads to a good relationship between the
manager and the subordinates, keeping away the tension of the work environment. A happy
workplace often translates into a place where employees are more loyal and productive. It spurs
interaction between the members resulting in development of close bonds and breaking down
barriers in communication. This may be particularly useful in a multicultural setting, where such
issues are more prevalent. Inculcating fun activities may dissolve the schism between different
groups or departments and improve transparency in communication. A lot of this is chemical. When
people laugh, their brains produce less cortisol and produce more endorphins and oxytocin. It results
in a mixture of feelings including excitement, calmness and contentment which enables employees
to think more freely and creatively. They are more considerate to feedback and more open to
other’s ideas. Studies have been conducted showing that job satisfaction is positively influenced by
attitude towards fun culture at work (Priyadarshini et al, 2018). Individuals who report greater level

3|Page
Pyramid International Company

of fun at workplace are likely to be more engaged and productive in their work and sharing more
innovative ideas.

Organizing healthy competition is an effective method for promoting such a culture. The challenges
might be or might not be work related. Employees can be split into heterogeneous groups and given
a specific task such as generating the maximum possible number of leads in a month. Also, a non-
work activity such a sports tournament may be conducted between different groups. The selection
of activities may be done in a way to promote intercultural learning. For instance, the activity might
be a common one for all the cultures involved or a completely new one. Either way, it will promote
intercultural integration. Group activities are an effective tool for deepening the bonds between
employees and dissolving barriers. It would serve as a distraction from hustle and bustle of
corporate life and helps rejuvenated employees get back to work with renewed energy.

If employees are working in a multicultural setting, they should learn more about other cultures.
Hence, a diversity calendar might be followed. Different festivals will be celebrated. Gaining
knowledge of multicultural festivals, will enhance understanding between the members. This will
also prevent the employees from feeling isolated or home sick. Hence, it will help in developing a
healthy work environment.

Transformational leadership results when managers and supervisors interact in a way that they raise
one another to higher levels of motivation and morality. Leaders widen and elevate their workers'
interests, build knowledge and acceptance of the group's aims and mission, and motivate their
employees to look beyond their own self-interest for the welfare of the group. It aims at meeting the
emotional needs of each subordinate, harbouring their specific skills and inspiring them by means of
appreciation and motivation. However, there is adequate evidence to support that effective
leadership in one culture, may be ineffective in another culture, even amounting to inflicting
psychological damage on the employees. In a transformational leadership setting, ethics and
effectiveness may suffer. Leaders might lack moral values and this might have negative impacts. A
transformational leader may try to boost a company’s performance by bringing about revolutionary
changes, however such a method may not be suitable in a multicultural or international work
environment. Such an environment requires a multi-dimensional framework of leadership. Here the
focus will be on language, ethics, conduct, relationship, flexibility and principles. The framework
known as the universal model is a combination of themes – Ability, Ambassadorship, Adaptability
and Awareness, which are the necessary characteristics of an expatriate leader (Jones et al, 2015).

4|Page
Pyramid International Company

Figure 1: Components of a transformational leadership

Ability refers to business sense. A successful expatriate must have sound knowledge of the tasks to
be carried out at work, in order to gain the trust of the colleagues and the manager. Adaptability is
the ability to adjust to different cultural settings and make changes in those settings. It encompasses
both personal and a professional perspective. Ambassadorship is the ability to represent the goals
of the company while working within the culture of the host country. The expatriate must not force
something, rather create a bridge between the goals and cultures of the host country and the
company. Awareness is one’s personal understanding. One must be aware of one’s strengths, values
and ethics and these must be aligned with the objectives of the company. An individual who is
unaware of his priorities will not be a good selection. These parameters lack hierarchy, which is the
reason that the model can adapt to ensure effectiveness. With changes in the needs of the work
environment, weightage of the factors may be varied to ensure effective leadership. This flexibility
allows to adjust to the impact that cultural norms can create on the expatriates. Cultural norms can
differ at various levels including social, national, corporate. Identifying abilities that may be
developed, such as social interaction in a cultural setting, can help expats improve their leadership
toolkit before embarking on a foreign assignment. From a selection standpoint, it would be critical to
discover natural attributes that can be utilised for screening purpose for identifying potential
candidates. With the help of the universal model, factors can be leveraged differentially according to
the situation resulting in a leadership suitable for a diverse workplace.

Leadership is a result of collective willpower organized to meet individual needs. It implies a process
of adaptation and evolution and exchange of values. Also, leadership is all about change. The general
consensus in the last few decades has been that one of the primary responsibilities of leadership is
to bring about change in order to enhance organisational performance. Without change, firms run
the risk of becoming outdated and may cease to function. Therefore, there is a need to evolve
continuously. Flexibility is essential in an international and multicultural workplace like that of PIC,
however the presence of complex processes can make it difficult for the firm to incorporate changes.

5|Page
Pyramid International Company

There is a need for a framework which will help organisations adjust to rapidly changing
environments and the become stable after implementation of the change. Lewin’s three step change
model provides such a framework.

It involves preparing the employees to face the changes. There is focus on creating awareness about
the deviations that are about to come and the need for them. Employees at PIC should be pre
informed in order to understand the reason behind those decisions and stay motivated. This process
is similar to changing the status quo by stimulating behaviour that is open to change. Initially the
mind offers resistance to change but once the emotional equilibrium is stirred up, it becomes more
accepting. At PIC, there is a need to conduct a survey in order to understand the need for changes.
Support of management must always be ensured. A captivating message must be created to
communicate the benefits of the changes from a long-term perspective.

Figure 2: Lewin's 3 step change management model

Various change options are planned in order to carry out trial and error with each and find out which
one would work. During the process, there is focus on information sharing across departments and
defining a vision. There is clarification of misunderstanding and negation of rumours, proactive
involvement is observed from employees. There is also emphasis on involving as many people as
possible. Such a process will thus help in sustaining the changes over a long term. In the next phase,
all these changes would be made a part of the culture of PIC and develop methods to sustain them
over a long term. Both short and long-term training would be provided. A feedback process would
be established and a reward system would be created.

Another framework for change management is the Mc Kinsey 7S model which is useful for examining
the likely effects of changes in the future. The model can help improve the performance of
organisation and devise an effective method for implementation of a change strategy. The model
aims at developing a balance seven elements in a way that they also reinforce each other. There is

6|Page
Pyramid International Company

however, more emphasis on shared values which is something that is also focussed upon in the
Indian context. The shared values should be consistent with strategy, structure and systems. How
well these metrics support each other and the need for a change in each.

Figure 3: McKinsey 7 S model

At PIC, the managers work with a large variety of people from different nationalities and cultural
backgrounds. Most of the times people are much indulged in their own culture; hence they fail to
realise how it affects their thinking or behaviour towards others (Barkley, D. 2017). Through usage of
tools such as Hofstede’s 5 dimensions of cultural differences, employees may be able to take
advantage of the cultural diversity at PIC. The dimension power distance refers to the degree of
inequality in power between different hierarchies in the organization. The index may vary from
country to country based on the culture. Studies conducted have shown a strong correlation
between low power distance and high job satisfaction and between high power distance and
opportunities for job advancement. Employees can tailor their style of communication and
leadership according to the power distance index level.

Figure 4: Hofstede's five dimensions of cultural differences

In a multicultural environment, managers are required to tailor their management approach to

reduce workplace stress associated with fear of the unknown. For instance, nations culture might
differ in the level of uncertainty avoidance. Requirement of flexibility in the management style helps
make a business more competitive and profitable. The diverse cultural perspectives inspire new
learning and hence creates an atmosphere which drives innovation and creativity.

Long-term oriented families treated their members with practicality, providing compassion for little
children but emphasising thriftiness persistence, and humility for seniors. Families in short-term
oriented nations instil social rules in their children at a young age, promoting spending and rapid

7|Page
Pyramid International Company

satisfaction of demands while reinforcing individual stability. Learning, flexibility, and discipline are
all workplace habits linked with a long-term oriented culture, as employees strive for the firm's
success and reject the concept of leisure time. Employee behaviour in short-term focused businesses
is notably different in terms of individual success, rights, and personal freedom.

Certain nations can be labelled as feminine owing to their culture which symbolises modesty, care
and nurture while others may be labelled as masculine since there is more focus on achievement
and success. Presence of diversity would allow managers to tailor their leadership and training
methods as per the employees. Harbouring a cooperative environment despite the struggles of
cultural differences, will allow managers to leverage the strength of each member. This is possible
through the development of a multicultural management strategy at PIC.

Human beings have a tendency to make assumptions about other’s behaviour based on his/hers
own cultural beliefs. In some cases, the individual may try to enforce his beliefs upon others. In
order to avoid such a situation, people should be more culturally relative. Cultural relativism helps
counter ethnocentrism by allowing everyone an understanding of other cultures. If someone does
not take a relativistic view, he/she might be tempted to view the foreign culture from his own
perspective. In a diversified workplace such as PIC, people from different cultures can interact with
each other in a way which promotes a sense of acknowledgement and respect. Such a relationship
creates scope for new opportunities.

Effective managers should be aware of their own emotions and feelings as well as of others. This
ability referred to as emotional intelligence can have positive impact on the work environment at
PIC. It can increase job satisfaction, hence enhancing overall performance. In order to achieve a
higher level of emotional intelligence, there is a need to identify one’s weaknesses and ask for
feedback from others. Technical knowledge and high IQ are entry level requirements for a job,
whereas interpersonal and team building skills helps a person develop a good relationship with
colleagues. EI will help managers at Pyramid International to continuously motivate their
subordinates.

Figure 5: Components of emotional intelligence

Culture has an impact on emotional functioning by determining whether feelings are harmful or
good, when they should be expressed, and how they should be shown. Structure, norms,
expectations, and regulations are all part of culture, and they help individuals understand and
interpret behaviour.

Self-awareness is a major component of emotional intelligence in a leadership role. Leaders at PIC

must be aware of their emotions and feelings and how these can affect people around them. It also
implies being aware of one’s strengths and weaknesses and behaving with humility. It helps develop
a good rapport between the employees through mutual understanding and motivation.

8|Page
Pyramid International Company

Self-regulation is another desired trait which will enable leaders to retain their values, avoid
impulsive decisions or stereotyping people. Showcasing personal accountability for the
consequences will help earn the respect of others and inspire others to follow. In order to improve
the ability to self-regulate, people must spend time in knowing what is important to them and what
are their core values.

Self-motivated leaders deliver a high quality of work. They will stay motivated towards their goals
and in turn motivate others. This is a person's desire to do things for the purpose of achieving a goal.
This is much more than performing their work for the money. Candidates will demonstrate a high
level of enthusiasm, optimism and resilience as well as a dedication to the company. In order to
improve motivation, leaders must stay optimistic, know where they stand and reassess the purpose
of the job they are doing.

Empathy enables a person to understand other’s emotions and feelings. This way they can stay fair,
give constructive feedback and put themselves in someone else’s shoes. Paying attention to body
language of the employees will help one assess their emotions. This will help them respond
accordingly to their feelings building long term relationships in the process.

Social skills are needed for a manager to manage changes and resolve conflicts within the team.
They lead by example and are good at gaining support of others. Social skills can be built through
improving on communication skills and appraising others publicly in order to motivate them.

In a diverse workplace like PIC, emotional intelligence is a vital tool to resolve conflicts arising out of
cultural differences. People will accept others the way they are, they will be considerate of other’s
ideas and provide constructive feedback. If people are able to understand each other on an
emotional level, it would only result in harmony in the workplace.

In the report, we have seen that when an organization is trying to expand globally by either building
regional offices abroad or recruiting international employees or deploying domestic employees in
foreign locations, communication channels might break down, conflicts may arise within the same
team or between different teams. This might be the result of differences in cultural background or
language or personality of the employees. In order to tackle this, care must be taken during
recruitment stages. Selection of candidates should be such as to ensure diversity in the workplace
and alignment of the characteristics of the individual with the department objectives.

Various frameworks have been mentioned which can applied in the work setting to deal with such
challenges mentioned above. Managers need to play leadership roles tailored to the needs of the
environment. They should continuously work on building relationships and motivating the
employees. Inculcation of a fun culture at work will also help in breaking down the cultural barriers.
HR can play an essential role in organizing group events which will help in building rapport between
different departments. The changes brought about by expansion of the organisation to foreign
countries might be a complex one, but with the help of appropriate models, employees can adapt
easily and progress along the path of success.

9|Page
Pyramid International Company

RERERENCE:

Burnes, B., 2020. The origins of Lewin’s three-step model of change. The Journal of Applied
Behavioral Science, 56(1), pp.32-59.

Gayathri, N. and Meenakshi, K., 2013. A literature review of emotional intelligence. International

Journal of Humanities and Social Science Invention, 2(3), pp.42-51.

Gordon, A. and Yukl, G., 2004. The future of leadership research: Challenges and
opportunities. German Journal of Human Resource Management, 18(3), pp.359-365.

Hofstede, G., 2011. Dimensionalizing cultures: The Hofstede model in context. Online readings in
psychology and culture, 2(1), pp.2307-0919.

Hussain, S.T., Lei, S., Akram, T., Haider, M.J., Hussain, S.H. and Ali, M., 2018. Kurt Lewin's change
model: A critical review of the role of leadership and employee involvement in organizational
change. Journal of Innovation & Knowledge, 3(3), pp.123-127.

Jones, R.P., Lyu, J., Runyan, R., Fairhurst, A., Kim, Y.K. and Jolly, L., 2014. Cross cultural
consensus: development of the universal leadership model. International Journal of Retail &
Distribution Management.

Watkin, C., 2000. Developing emotional intelligence. International Journal of selection and

assessment, 8(2), pp.89-92.

10 | P a g e