When developing Human Resource Management Strategy, it is important for managers to do environmental scanning of the external environment. Is it important to discuss how cultural factors, both globally and inside organization, must be addressed? Why?

Answer:

There are various ways in which the cultural factors, both globally and inside Organization, impacts the way an Organization carries out the work. For example, in order to ensure the success of Firms with a global organizational structure, linguistic skills are one of the most influential external environment factor that helps in shaping Organizational culture for managers and business leaders in the 21^st century. Linguistic skills form part of the bigger skill called ‘communication’. When the medium of exchange of words are common between two parties, it becomes rather more logical for the managers to deal with the employees or stakeholders at the host country because all could be on the same page.

The most significant impact that Globalization has had on Organization culture in today’s work environment is the aspect of Multiculturalism. This concept of multiculturalism needs to be incorporated in its true sense, to the values of the Organization such that the Organization is more adaptable to the transnational structure. Multiculturalism is a philosophical framework in any given Organization in order to design policies that can efficiently handle the concept of paying equal request to various cultures when people hailing from different backgrounds come together in Organization to work in a cooperated manner, promotion of cultural diversity, management of various ethnic groups within an Organization, etc.

From the management perspective, it is to be noted that one very significant risk that a Company faces when trying to diversify internationally is the cultural risk because there are certain Dominant cultures that express the core values that are shared by a majority of the organization’s members while there are also certain subcultures which could be regarded as the minicultures within an organization, typically defined by department designations and geographical separation. Hence in terms of implications, both these cultures impact the tolerance level of the people belonging to different cultures in a major way. Here, it is a rare ability to bridge such a perception gap which has already been rooted down into the beliefs of the people hailing from different culture. Further, the National culture has all more greater impact than the Organizational culture on the minds of the people. In certain culture, there is a facilitation of commitment to something larger than self-interest that enhances the stability of the social system. However, it may not get along well with that of the other cultures where social commitment does not form an intrinsic part of the culture. This is where the ideologies clashes between the cultures and there arises the challenge of tolerance. Here, if the leaders are not intellectually brilliant, the diversity management issue will fail. Further, when the Company goes international, the diversified team ethical issues are more critical to barriers to change and diversity which also comes in the way of welcoming or accepting another culture in harmony with that of one culture. The gestures and cultural characteristics are one culture may be complete inverse from that of the other, which may again pose as a barrier to tolerate other cultures. Some cultures are liberal while some are way too conservative hence arises the issue of tolerance to other cultures. Hence despite investing in multicultural teams training, some alliances still fail. If the leaders are not intellectually brilliant, they would find it difficult to manage these barriers because their own culture has not taught to see the other cultures in such details hence this intellect needs to be cultivated as well.

In this way, it is essential for any Organization to address to the cultural factors that influence the Organization is an important way.