Module assessment HRMG5064 – People, Management and Organizations

Table of Contents

Introduction:

The multinational and multicultural nature of the organization calls upon the leadership to develop an effective leadership style that can incorporate different cultures within the organization leading to its active development and growth (Cooke, Xiao and Xiao 2020). Such a multinational corporation is situated in New York, United State of America (USA) which is competing at the global level. The company is known to have items such as premium quality shoes, clothing, bags, and the insurance policy for defending diamond and gold ornaments. Hence, a multinational company needs to undergo several changes with time. It let the entire company and their leaders to act as per the needs of the company, to achieve the goals. Being a leader of a Multination Corporation (MNC) in New York, United State of America, there several areas that need to look after to let the entire multinational company run the way that will achieve success (Shahreki, 2019). As the Multinational Corporation (MNC) is full of a skilled and knowledgeable employee across the country, hence leads to develop a diverse culture in the organization. Considering the above mentioned discussion, the aim of the essay is to evaluate the leadership style that will be helping to run a multinational corporation (MNC). The diverse culture of an organization needs to have a different leadership style that will assist the leader to run the organization in a better way (Ahammad, Glaister and Gomes, 2020). Hence, considering the aim of the essay the below discussion consists of evaluating the different leadership styles and the style that best suits a multinational organization. Apart from that, the discussion will be carrying culture-related challenges and mitigation strategies. Besides that, managing the communication barrier among employees is also an important factor for the leader of the diverse family. The rest of the discussion will evaluate the different aspects related to the aim of the essay. 

Leadership style:

The leader of a multinational organization needs to consider several leadership styles to let the diverse environment of the organization to achieve the goal in a calm way. An organizational approach and culture completely depend upon the way the company leader let their managing quality to reflect. It is obvious that a leader cannot follow a single leadership style; they need to understand the approaches of every leadership style. As there are different types of leadership styles, hence a leader can have their personal way of managing the employees. The preference for a leadership style reflects the fact that in the point of view of the leader there is some immeasurable point that let them consider such a leadership style (Mwita, 2018). For a multinational corporation, democratic leadership quality is considered to be suitable. The other leadership style such person focused leadership, directive leadership, participative leadership, and many other works to support the most preferred leadership style in a multinational corporation. As considering these leadership styles solitary will not assist to run a multinational company of diverse family. Such as the person-focused leadership will be completely against the diverse culture like it will be focusing on the leader only. The directive leadership let the leader to provide the only direction for the followers; it does not allow the leader to have an emotional or sensitive attachment (Newman, Fast and Harmon, 2020). And another leadership style lets the leader participate when needed, hence participative leadership style solitary is also not adequate to be used in the multinational corporation. Hence, these leadership qualities let the leader be part of the organization, but do not allow the employee to be a component of the organization. To let the leaders as well as employees be part of the organization, the democratic leadership style is considered to be suitable for a multinational company. The democratic leadership style is based on participation from all the members in the decision-making process. This will help the employees belonging to different countries and cultures within the organization to actively take part in the operations of the business (Waldman, et al. 2019). It will help the organization to get a creative solution for the problem which will increase the chances of success for the organization in the long run. The performance preferences of each employee despite belonging to different countries and cultures will be acknowledged and honored in the democratic leadership style. These acknowledgments and honoring of the employee's performance is completing lack in the other leadership style approaches. The other leadership style either focuses only to provide direction or command; it does not allow building a supportive culture among the employees and employers. The multicultural work environment creates certain culture-related challenges which can lead to the development of stereotypes and biases in the organization relating to employees belonging to the different culture which requires effective mitigation strategies from the leadership front. Also, the communication barrier posed on account of the multicultural workforce require exposing the employees to the different cultures and involving them in cross-culture training programs which can help in reducing the communication barriers at the workplace. The democratic leadership style will help to capitalize on individual talent and strength by making the employees an active stakeholder in the success or failure of the organization (Argote and Fahrenkopf, 2016). Democratic leadership promotes active communication which is a major problem in a multicultural organization leading to greater work cohesion. It encourages the building of trust within the organization by making the employee's active member in the process. The applying of a democratic leadership style in a multicultural and multinational organization will help more in achieving set goals in time.

 Culture related challenges and mitigation strategies:

The multicultural work environment can promote Interpersonal discrimination among the employees belonging to different cultures which can take the form of rudeness and excessive surveillance for the employees belonging to different cultural backgrounds which negatively affect their attachment and commitment to the job. Name-calling and exclusion practices are a common form of discriminative practices in a multicultural work environment that discriminate against employees belonging to a different culture. The values, beliefs, and norms which are decided by the culture often vary from culture to culture that affects the behavior of the person which creates hurdles in the active engagement as the employee belonging to the different culture often fails to understand the norms set by other culture in a multicultural environment (Javaheri, et al. 2020). In the multicultural work environment, it has been found that the employees belonging to the western culture has a direct and well-defined way to collaborate in the workplace while the employees belonging to the third-country nationals shows a separate and distinct way in which they are little reserved in effectively interacting with others leading to the development of culture-related challenges. It can also happen that employees indulge in stereotyping about a particular culture For instance, there may exist a negative stereotype that the person belonging to a different cultural affiliation has a low intelligence level and may not suit for the performance of a particular activity. Ethnocentrism also creates hurdles in the workplace leading to creating misconceptions in the workplace environment. Ethnocentrism revolves around the idea that our culture is distinctive and it is the standard against all other cultural groups which is the major reason for the creation of misunderstanding leading to communication gaps. The generalization and assumptions which are made in the multicultural work environment often create culture-related challenges (Kataria et al. 2020). For instance, in some cultures keeping eye contact is considered rude while in another culture keeping eye contact can be a must requirement at the workplace.

To mitigate cultural related challenges it is required to form effective strategies that involve analyzing the cultural gap which is present in the multicultural work environment and try to build up policies that incorporate elements of all the culture. It involves respecting the different culture and avoiding any kind of stereotype and bias which existed earlier which lead to discrimination for the person belonging to different cultures. Sensitivity is required to be shown from the employee's front regarding the values, beliefs, and norms that are prevalent in different cultures to accommodate cultural differences. Recognizing the unconscious bias which an employee belonging to a different cultural background goes through will help to deal with culture-related challenges that emerge in the multicultural work environment (Kaushik and Guleria, 2019). To remove the culture-related challenges in a multicultural work environment it is required to treat the challenge as a legal and moral obligation that is linked to the long-term growth of the organization. It will be required to create an effective work environment where people belonging to different cultures value their differences and appreciate the different approaches followed by them based on their values and belief system.

Managing communication barrier among employees:

It is required that patient listening must be promoted in the organization which can avoid any kind of miscommunication in the organization as there would be people who belong to different cultures who do not have fluency over the use of English language which can create a major communication barrier. A multicultural mindset is required while operating in a multicultural work environment (Hašková and Dudová, 2019). The multicultural mindset adopted will lead to greater work cohesion among the employees belonging to different cultural backgrounds promoting enhanced communication. Team coordination and cooperation need to be promoted to reduce communication barriers in a multicultural workplace environment to increase the productivity of the organization. In case of cultural differences among employees which are leading to the communication barriers affecting the long term growth of the organization, it is required to work on improving team relation by letting employees knew about the different aspect of each other's culture so that the team can work in harmony (Soulsby, Hollinshead and Steger, 2017). There should be efforts to expose the employees to different cultures so that they do not have any problem in communication while working with the person having a different cultural background. It is required to promote cross-cultural training programs to overcome the cultural challenges which can be posed due to the multicultural work environment. The focus of the cross-cultural training program should be on how to avoid stereotypes and biases, how to promote effective communication among people belonging to different cultures. It is required to show empathetic behavior towards the people belonging to the different culture in which it is required to understand what the employee is experiencing. Showing empathy will help to quickly resolve the conflict which may have arisen of the cultural differences leading to communication barriers among employees. It has to keep in mind that different cultures involve different communication styles in which the verbal and non-verbal communication highly varies depending on culture to culture (Prosser, 2017). It is required to nurture different cultural communication styles within the organization so that any existent communication barrier can be avoided. The visual method of communication can be opted for so that the person who is not fluent in English communication due to his cultural background can easily be accommodated within the organization. This will reduce the creation of any kind of misunderstanding regarding the communication of messages within the organization

The language differences could promote a close regional working environment in the organization. It can help in the development of shared language within the organization which involves using words which has the same meaning for all the employees irrespective of their countries and culture. The development of the shared language due to the language differences helps in better understanding the values and belief systems in a different culture which leads to effective communication among employees belonging to a different culture (Arnholtz, Meardi, and Oldervoll, 2018). Development of shared language together will involve employees working in a close regional environment which will lead to greater work cohesion improving the communication parameters among employees.

Application of ethical, moral, and ecologically friendly approaches to enhance sustainability:

The effective management of employees belonging to the different culture and the ethics in the organization will help in improving the long term growth of the organization. The most important factor which helps the organization to carry on its activities is the human element. The work ethics will call for treating all the employees irrespective of their countries and culture equally. The ethical and moral code of the organization will call for avoiding any kind of indulgence in stereotyping the people based on their cultural identity (Lafuente Hernández, 2019). The main focus to manage cultural diversity through ethical and moral code is to tap into the potential diversity and use it for the active growth and development of the organization. The ethical and moral code will prohibit activities such as name-calling and exclusion practices that discriminate against employees belonging to a different culture and will impose penalties and even dismissals of employees who indulge in discriminative practices at the workplace. Awareness of diversity and ethics is crucial for the growth of the organization. The embracing of cultural diversity and ethics management will have a positive implication on the employees belonging to different cultures leading to improvement in their performance (Biswas and Mazumder, 2017). The ethical and moral code will promote an internal reporting mechanism that can be used by employees belonging to different cultures to report cases of culturally related challenges at the workplace. The introduction of the legal framework will also be introduced within the organization's ethical and moral code so that discriminative practices can be avoided in the organization. Coming to the ecological front the activities of the organization will be carried in such a way that it has a minimum impact upon the environment leading to the promotion of sustainability (Ivancheva, Lynch and Keating, 2019). It will include training the employees of the organization in the environmental issues and responsibilities so that policies of the organization can be carried out effectively. Carrying out the environmental impact assessment will be done to analyze the impact of the organization's activities on the environment. The sustainable procurement of materials will also be taken seriously to promote the concept of sustainability in the organization's activities.

Improving confidence and motivation levels among employees:

Efforts will be made to improve the confidence and motivation levels among the employees which are currently not up to the mark. In this direction, the help of timely feedbacks will be taken which will involve proper communication with the employees regarding their performances and telling them the areas in which they need to improve (Rodriguez et al. 2016) The timely positive feedbacks regarding their work will help to improve the confidence and motivation level among the employees. The expectations from the employees will also be communicated so that the employees feel more responsibility towards their work leading to the accomplishment of the task which can boost the confidence level among the employees. Efforts will be made to work towards the personality development of the employees in which the activities which are not part of the organization's work will be promoted which can lead to the development of the employees. It can act as the most important way to boost the confidence of the employee by providing them their personal space. Improvements will also be made by providing effective training to the employees so that they are well aware of the different aspects of their work leading to more confidence and motivation while performing the work (Grunberg and Matei, 2019). More focus on the career aspiration of the employees will be taken in which efforts will be made to know what the employees expect from the organization and what is their plan. Doing this will helps to enhance the motivation and confidence level among employees leading to more productivity for the organization. Development of the reward and recognition scheme will be worked which will honor the employees who are performing well in their work. Timely appreciation will boost their motivation level to work with more enthusiasm.

Creation of the right work environment will be focused on which will promote which will provide due importance to all the employees irrespective of their countries and culture. This will help the employees feel highly motivated and lead towards establishing harmony and Collegiality in the workplace. Efforts will be made to recognize the low morale among the employees which may be due to the cultural differences hampering the motivation and confidence level among the employee (Aeon and Aguinis, 2017). Quick redressal of such problems will be taken care of so that employees can work in harmony leading to increased motivation and confidence among employees. Constructive criticism will be opted for in the organization so that it does not have any negative effect on the motivation and confidence of the employee. Any issues regarding the working of the employee will be talked in personal so that employee can improve upon the problem without getting much affected by it.  Risk-taking will be promoted in the organization so that the employees can feel confident in their decision-making ability without thinking too much of the outcomes. Sessions will be organized within the organization to leverage the use of different cultures in the organization and helping the employees to know about each other's culture. It will help in establishing harmony and collegiality at the workplace (Greenberg, Clair and Ladge, 2016).

Goleman's dimensions to achieve more collective leadership practice:

Emotional intelligence is even more important than cognitive intelligence and is about managing emotions. Emotional intelligence is one of the most required skills for leadership. The applying of emotional intelligence in a multinational and multicultural organization increases the chances of the success of the organization in the long term. The lacking of emotional intelligence harms team performance and can lead to less productivity and high turnover rates in the organization. There are mainly five components of emotional intelligence that will help in more collective leadership practice.

Self-awareness is very crucial in developing the collective leadership practice as it helps in properly understanding the strengths and weaknesses of oneself and also the impact of one's emotions on the productivity and performance of the team (Wright and Phan, 2020). Working in a multicultural work environment can put oneself into strong emotions which can hamper the work environment in the organization. Therefore self-awareness is necessary to balance those strong emotions which can help in behaving with humility with the employees

Self-regulation deals with effectively regulating oneself and staying in control. It prohibits taking emotional decisions that can affect the health of the organization negatively. It will help in discouraging to involve in stereotyping people based on their culture which will ultimately boost the motivation and confidence level among the employees (Rasheed and Priem, 2020). Self-regulation calls for holding oneself accountable if anything goes wrong in the organization. This will also boost the employee's morale as they will see that the same sets of rules are applied throughout the organization without any discrimination. Self-regulation controls oneself in making a verbal attack by properly controlling the emotions.

Motivation is also one of the crucial factors in developing collective leadership practice. The sustained motivation can only come from a genuine passion for the work which does not involve the material benefit in it. The internal motivation will help in clear decision making taking into consideration different aspects of the organization which will help in the active growth and development of the organization as well as employees. Higher motivation will lead to an optimistic attitude which will help in dealing with future emerging challenges (Shimoni, 2017).

Empathy is also important to run a successful team. Empathetic behavior will help in understanding the problems of the employees who belong to the different culture which will ultimately lead to setting up policies that will facilitate the setting up of the multicultural work environment. Addressing the feelings of the employees in a multicultural work environment will help in greater commitment from the employees towards the vision of the organization.

Social skills are an important part of emotional intelligence which helps in developing the collective leadership practice. The social skill helps in the effective conflict resolution among the team members which may arise due to the multicultural work setting (Bradley and Klein, 2016). Social skills help in praising the team member regarding their work performance which has a positive impact on the motivation and confidence level of the employees.

Conclusion:

From the above assessment, it can be concluded that the democratic leadership approach will be best suited in a multinational and multicultural environment. The leadership style will help in promoting group equality which is the most aspect as the workplace involves a multicultural environment which sometimes creates hurdles in the active engagement of all the employees affecting the growth and development of the organization. The sharing of decision-making and problem-solving responsibility among the employees belonging to different countries and cultures improves the motivation and confidence of the employees leading to increased productivity for the organization. Also, certain culture-related problems can emerge in the organization due to the multicultural work environment which includes name-calling and exclusion practices which require effective mitigation practices in the form of increased. The sensitivity is required to be shown from the employee's front regarding the values, beliefs, and norms that are prevalent in different cultures to accommodate cultural differences. To manage the communication barrier among the employees it is required to opt for patient listening and developing a multicultural mindset which can promote effective communication among the employees belonging to different cultures. It is required to nurture different cultural communication styles within the organization so that any existent communication barrier can be avoided. Also to enhance the motivation and confidence among the employees it is required to engage in timely feedbacks and creation of reward mechanism so that the employees can feel highly motivated and confident while performing their work leading to increased productivity for the organization.

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