Diversity Management: Overcoming Cross-Cultural Barriers in Multinational Companies

Diversity management

Table of Contents
PART 1............................................................................................................................................3
INTRODUCTION..................................................................................................................3
PART 2............................................................................................................................................4
Relevant cross-cultural theories, how national cultural differences might influence the
management of people............................................................................................................4
PART 3............................................................................................................................................7
Managers might overcome barriers to effective communication in multicultural teams.......7
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

PART 1
INTRODUCTION
Cross cultural communication is a very crucial tool for all multinational companies
according to their prospective of growth, scale and expansion in various international markets.
Cultural differences are the way people are making decision, following orders and organisation
are dealing with the tremendous challenge of getting things done. There are major two areas that
are to be considered for the purpose of strategically looking at different areas of cross cultural
setting. It includes development of cultural understand & sensitivity among employees and
executives by learning and education prices. Second objective is to adjust communication styles
according to culture and market needs for various initiatives, projects and programs is that
decisions are properly managed (Cagliero, 2020). Presently the report is based on the evaluation
of the way multinational Companies like TESCO is adapting and dealing with different cross
cultural barriers that are leading to situations of need of strategy formulation in order to deal with
its negative impact on the overall functioning.
TESCO is a British mutational organisation that is dealing in grocery and merchandise having its
headquarters in England. It is the third largest retail brand across world that is measured by
gross revenues.
TESCO is having presence across seven countries that includes Europe, Asia, Ireland, Thailand
and Hungary. It was founded by Jack Cohen in 1919 started as a group of markets stalls in
Hackney, London.
TESCO has a mission is to have long term success and a focussed business scenario (Higueras-
Castillo, Munoz-Leiva and Liébana-Cabanillas, 2019).
Mission is to remain constant in their business strategies and business practises so that they are
able to continuously adapt to changes environment in the competitive global environment.

Vision is the aspiration view where the business is willing to be and is providing a benchmark
for various stakeholder in TESCO.
Above mentioned are the strategic mission & vision of TESCO that are focussed on dealing with
all the barriers that arise in the process of cross cultural expansion of TESCO.
PART 2
Relevant cross-cultural theories, how national cultural differences might influence the
management of people
For the purpose of managing functions at cross culture there is implementation of some cross
culture management theories in TESCO in order to understand the basic process that assist in the
management of cross culture:
Hofstedes cultural dimensions theory:
It was developed by Geert hofstede where the main framework is used for understand the various
differences of culture across countries and the way business are performing at different cultures.
It is a framework that has been used for distinguishing across various national cultures and asses
the impact on business settings (Walsh,and Winsor,, 2019). There are six categories that are
identified according to cultural dimensions as mentioned below:
Power distance index:
It is considered as the extent to which the inequality or the power is tolerated in the organisation.
The power and inequality are viewed from followers view point. In TESCO there is high power
distance index that is indicating a culture accepting inequity & power differences,
encouragement of bureaucracy that is showing high respect for authority and rank. Lower power
distance index is indicating a culture that is encouraging a structure of organisation that are flat
and the decision making responsibility is decentralized because of application of participative
management style.