Table of Contents Examination Questions....................................................................................................................3 2. What do you understand by a ‘Cultural Shock’ and discuss how it might affect an expatriate performanceininternationalorganisations.Discusshow‘multi-cultural’workingis encouraged in Barclays and Cadbury..........................................................................................3 3. MNC’s are relying on virtual teams to manage a geographically dispersed workforce to succeed in global economy. Discuss how virtual teams in Barclay’s and Cadbury draw on the benefits of international diversity to compete in the current business environment...................5 References........................................................................................................................................6 2|P a g e
Examination Questions 2. What do you understand by a ‘Cultural Shock’ and discuss how it might affect an expatriate performance in international organisations. Discuss how ‘multi-cultural’ working is encouraged in Barclays and Cadbury. Cultural shock is common phenomena which effects to those people who are living far from their own culture for unexpected reasons (Furham, 2012). Most of the private organisation are internationalised now due to globalisation which are effecting on their business. Each and every organisation has its own organisational culture which highly influenced with the nation’s culture where from it belongs. Expatriate performance is highly affected by the cultural shock which can be analysed by the Hofstede model to analyse 6 dimension of culture. Effect of cultural shock is given below in table of different countries for Barclays and Cadbury: 6 DimensionsUK(Barclays and Cadbury) Impact on expatriate performance Power distance35Lower power distance rank is indicating the dominance of inequalities in culture which negatively impact on the performance. Individualism89Peoplewanttolivesindividuallywhichindicates interdependence in the people (Hofstede Insight, 2018). It enhances rivalry in working culture to survive which creates a healthy rivalry in employees. Masculinity66UKhashighmasculinityfactorwhichindicatesthe culture is fully driven with competition and success. It motivates the expatriate to perform better. Uncertainty avoidance 35Itindicatesthatpeoplearenotawareaboutthe uncertainty(HofstedeInsight,2018).Itimpacts positively on the performance to live a better life in their life. Long-term51This score indicates the relevance of people with past 3|P a g e
orientationfactors(HofstedeInsight,2018).Itimpactonthe expatriatenegativelybecause it force them to adopt British cultures and traditions to work. Indulgence69It indicates the control on desires of the people which impactsnegativelyontheperformanceexpatriatein Barclays and Cadbury. Barclays and Cadbury both are international companies and both are having a cultural diversity. Cultural diversity management is used by the both companies to use multi-culture as strength. Barclays has provided equal treatment to individuals belongs to different cultures (BARCLAYS, 2018). This is an effective method for the Barclays to generate maximum contribution form the employees by managing diversities in the organisation. Barclays has encouraged an environment in which people feel involved in the work and be confident in their own work by the equal treatment. Cadbury is also working in the international market and it has managed cultural diversity by communication, team-building and involvement of people belongs to different culture. 4|P a g e
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3. MNC’s are relying on virtual teams to manage a geographically dispersed workforce to succeed in global economy. Discuss how virtual teams in Barclay’s and Cadbury draw on the benefits of international diversity to compete in the current business environment. Barclays has its two financial centres one in New York and other in London. It is essential for the organisation to cope-up with business targets. So it is essential for the organisation to manage its both centres effectively. Cadbury is also working in the international market in which they have to make a proper balance in the organisation. Currently, Cadbury is a subsidiary brand of the Mondelez which is managing and controlling the process of the Cadbury. Different virtual teams are engaged with the organisations e.g. Cadbury and Barclays to implement anticipated work by the higher management of the organisation into the different branches and centres of the organisation. Barclays has its branch in the New York also and it is essential for them to manage their financial records properly. Virtual teams are working to manage both centre equally and effectively to attain its business targets. Finance and accounts team has a major responsibility to manage data and records effectively to keep transparency in the activities of the organisation. Research and development, finance and accounts teams are working majorly with Cadbury to identify the new scope in which new brands and products can be launched by the company. These virtual teams play a major role in the success of the organisation by coping with the current international market conditions (Stahl, et. al., 2012). 5|P a g e