International Business Assignment
Added on - 29 Apr 2020
Running head: INTERNATIONAL BUSINESSInternational businessName of the studentName of the universityAuthor note
1INTERNATIONAL BUSINESSQuestion: 1In determining the cultural aspects including the national cultural differences, two mosteffective theories are the Hofstede’s cultural dimensions and Trompenaars’ model of nationalculture differences. The first aspect of Hofstede’s cultural dimensions is power distance index(Taras, Steel and Kirkman, 2012). It refers to the inequality in the society and the extent towhich, people accepts the inequality in the society. The more power index for a country refers tothe more centralization of the organizations and having huge gaps among the organizationalhierarchical structure and vice versa (Martinet al.,2012). The next element in this model is theindividualism versus collectivism. This refers to the extent to which people are interpersonallyconnected with each other and vice versa. Masculinity versus femininity is another aspect of thismodel. This refers to the distribution of the roles being played by males and females in thesociety.The next aspect is the uncertainty avoidance index. This factor refers to control of thepeople in controlling their own lives. Countries having high rate of uncertainty avoidance indexwill lead their life in a more predictable way and vice versa (Shah, 2012). On the other hand,pragmatic versus normative aspect refers to the extent to which, people is inclined towardsnationalism and regions. One of the main advantages of this model is comparison of the nationalculture with respect to the organizational culture. This will be helpful and beneficial for themultinational companies. On the other hand, one of the prime limitations of this model is the lessconcentration towards globalization (Hitt, Ireland & Hoskisson, 2012). Hofstede’s model isbeing stated without considering the factor of globalization. The major part of this model isconcerned with the specific cultural differences in different countries, which is irrelevant in thepresent era of globalization.
2INTERNATIONAL BUSINESSOn the other hand, Trompenaars’ model of cultural differences also covers the differentdimensions of the manner at which, people deal with one another. If this model is beingcompared with the Hofstede’s model, then Trompenaars’ model involves broader survey ofresponses due to the large scale survey covering 8841 managers and employees from more than40 countries. Thus, the conclusion of this model is more practical compared to the Hofstede’smodel (Shukla & Purani, 2012). One of the key advantages of this model is the problem solvingapproach compared to the Hofstede’s model. This model is being stated in more practical wayscompared to other models. However, on the other hand, the key limitations of this model are theuse of theoretical concepts rather than any statistical means. Thus, the use of theoretical conceptswill hamper the probability of aligning it with the practical situations.Question: 2For the contemporary business organizations, managing the employees effectively ismuch important due to the fact that, motivational level of the employees is important in gainingcompetitive advantages by the business organizations. This is due to the fact that, the moremotivated will be the employees, the more they will get involved in their workplace (Anitha,2014). Eventually, engaged and involved employees will have more productivity andeffectiveness in the organization. According to the theory of motivation being stated by Maslow,fulfillment of the basic need of the employees will help the organization to enhance the level ofmotivation in the organization. Managing the level of motivation of the employees is alsoimportant due to the fact that in the multinational organizations, employees belong fromdiversified social backgrounds (Dobre, 2013). Thus, enhanced level of motivation among theemployees will help the organization to reduce the chance of having issues related to diversity.
3INTERNATIONAL BUSINESSAnother important management practice for the business organizations is leadership.Effective leadership is important in the organizations in order to lead and mange the internalstakeholders effectively. In addition, effective leadership also determines effective organizingand planning the organizational policies and strategies. One of the prominent theories ofleaderships is the transformational leadership. According to this theory, effective leadership willhelp in building positive relationship with the employees (Hanson, 2013). Moreover,transformational leadership will act as leader rather than just be the manager. However, in caseof cultural differences in the organization, leadership role should be played in such a way that, allthe employees belonging from different cultural background will be equally represented in theorganization. Moreover, in the case of diversified workforce, leaders have to consider all thediversified considerations of different employees, which may have adverse implications on theeffectiveness of the leadership (Agrawal, 2012).Another effective management practice is the team working. For the contemporarybusiness organizations, majority of the jobs are being done in teams. In addition, most of themultinationals are having diversified workforce and it is important for them to effectivelymanage the teamwork. This is due to the reason that, in any particular team, all the teammembers will be from different cultural and social backgrounds and thus, it is important toeffectively manage the differences in the workforce. According to the theory of teamwork beingstated by Tuckman, there are some steps such as forming, storming, norming and performingshould be initiated by the organizations in order to effectively manage the issues in theteamwork. However, in the case of cultural diversity in the teamwork, the theory of Tuckmanwill be more beneficial due to the fact that, storming and aligning the team members with that ofthe organizational objectives is important.