The Importance of Cultural Differences for Global Multi-National Corporation (MNC)

This essay discusses the importance of cultural differences for global Multi-National Corporations (MNCs) and examines whether cultural differences really matter in an increasingly globalized world. It explores the impact of cultural diversity on business operations and workforce management.

Managing Across
Border- Individual
Assignment

Topic: The importance of cultural differences for global Multi-National Corporation (MNC). Do
cultural differences really matter in an increasingly globalised world?..................................................3
INTRODUCTION....................................................................................................................................3
MAIN BODY...........................................................................................................................................3
CONCLUSION........................................................................................................................................4
REFERENCES.........................................................................................................................................5

Topic: The importance of cultural differences for global Multi-National
Corporation (MNC). Do cultural differences really matter in an increasingly
globalised world?
INTRODUCTION
Cultural differences are various behaviours, languages, practices, beliefs, expression and so on
considers unique to members of specific ethnicity, race or national origin (Qin, Wang and Ramburuth,
2017). This essay will going to discuss importance of cultural difference for global Multi-National
Corporation. Along with this, It will also highlight that does cultural difference really matter within
increasing globalised world.
MAIN BODY
Cultural diversity is related to quality of diverse or different cultures, the global monoculture,
homogenization of cultures and akin to cultural decay (Gu and Nolan, 2017). In addition to this,
cultural diversity also related to having different cultures in respect of each other’s differences.
Moreover, cultural diversity is also utilising to mean variety of human societies or cultures within
particular region or within the world as entire. But on cultural diversity globalisation is also having
negative impact because every country have different culture which sometimes may result in giving
negative impact within working of business firm (Morgulis-Yakushev, Yildiz and Fey, 2018). It is
important for companies while they are expanding their business at global level. They have to hire
diverse culture staff members so they will be able to serve their customers in appropriate manner as
per there requirement. Apart from this, Cultural diversity is essential because nation, workplaces as
well as schools constantly have various cultures, ethnic group and racial. It is important to have
diverse culture people in each and every sector as they help in conducting operations and serving
people at individual level in appropriate manner.
In today’s world cultural diversity play important role within business firm and within this
criteria it involves groups like geographic basis, race, gender, age, functional, cognitive capability,
lifestyles, attitude, language, background, occupancy with organisation and sexual preferences
(Hermans, 2018). Moreover, Multi-National Corporation work within global market and these should
be ready for identifying potential modification within global environment. Along with this, it must be
able to adopt as well as communicate uniqueness of organisation to compete within business
environment. For instance, McDonald’s are adopting culture where they operating as well as made
some modification for accomplishing market growth. Moreover, respective company don’t serve port

or beef within their menu because Hindus don’t eat beef as well as Muslims not prefer to have pork.
So they introduce Maharaja Mac within their menu as per Indian Culture. In addition to this, another
example of cultural diversity is that Google gives chance to people for browsing in different languages
(Abugre, 2016) (Abugre, 2018). In addition to this, Multi-National Companies are facing several
challenges within their day to day business operations from last few years. Globalisation has modified
several things for their international players that mean companies. Generally in Multi-National
Companies there are some focal points in relation of resources as well as sectors like technology,
marketing, finance, production sales and so on. Motive behind this focal point is that companies want
large number of customers as well as generating revenue (Miao, Zeng and Lee, 2016). Major
challenge that MNC deal with their employees is diversity as milestone research by Hofstede with
116,000 recruits of IBM, a gain Multi-national Corporation within 50 nations as well as 3 regions
recognized 4 cultural values in organisation i.e., power difference, Individualism-collectivism,
Uncertainty avoidance as well as masculinity-feminity.
For managing cultural diversity at global level it is important for each and every country to use
one common language which is English because it will help people to communicate within each other
in effective manner. English language is effectively language of business within advance economy of
developing world. By some scholars it has been argued that cultural differences are irrelevant if each
and everybody will learns English as well as speak same language and become westernised. Best
illustration of this situation is, Singapore which is famously evolved from third to first in generation
within late 20th Century (Vlajčić and et. al., 2019). Every Singaporeans learn English and second
language which is base on their cultural heritage. Thus, it is important for each and every nation to
learn English and make it second compulsory language option because it will help them in conducting
their business globally within more effective manner. In addition to this, it is important for companies
to work at global level because MNC primarily offer several advantages in comparison of local
business. Thus, Multi-National Corporation be apt value aptitude more in comparison of local
business firms. It’s all within the culture as respective corporation was generating profit and market
from international from local nation (Zhang, Harzing and Fan, 2018). For instance, McDonald’s is
generating high revenue while working at international level in comparison of their own nation.
For managing workforce diversity within Multi-National corporation it become challenge for
Human resource division of organisation as they have to set up global corporate culture. In addition to
this, to recognize the business firm corporate culture it is important thing for staff members. This is
main reason that building global corporate culture is most essential challenges for MNC (Multi-
National Corporation). Furthermore, behaviour of personnel is most critical challenges which MNC
have to deal with now a day’s. Within MNC there are wide issues due to diverse staff members as
outcome it will result in anxieties within personnel’s. Thus, successful adoption of culture results in

reducing conflict, anxiety as well as intention of employees to leave (Vaara, Tienari and Koveshnikov,
2019). In addition to this, cultural diversity successful implementation result in enhancing business
firm obligation, confidence, job satisfaction, job familiarity, establishing relation and many more. For
instance, Google maintaining its personnel as well as assess them in quantitative and qualitative
manner. Actually, the business firm prepared its work environment vibrant as well as vehicles the
image of an enjoyable place to work during what it proposes. Thus, it has been determine that cultural
differences play essential or important role within increasing globalised world.
CONCLUSION
After going through entire discussion it has been summarised that, Cultural diversity is related
to quality of diverse or different cultures, the global monoculture, homogenization of cultures and akin
to cultural decay. In addition to this, cultural diversity also related to having different cultures in
respect of each other’s differences. In addition to this, cultural diversity play important role in
working of Multi-National Corporation. By hiring diverse culture employees companies are able to
serve their employees of different culture in appropriate manner. Through entire discussion it has been
summarised that, cultural differences play important role in increasing globalised world.

REFERENCES
Books and Journals
Vaara, E., Tienari, J. and Koveshnikov, A., 2019. From Cultural Differences to Identity Politics: A
Critical Discursive Approach to National Identity in Multinational Corporations. Journal of
Management Studies.
Zhang, L. E., Harzing, A. W. and Fan, S. X., 2018. Setting the scene: expatriates, language and culture
in China. In Managing Expatriates in China (pp. 33-53). Palgrave Macmillan, London.
Vlajčić, D. and et. al., 2019. Expatriates managers’ cultural intelligence as promoter of knowledge
transfer in multinational companies. Journal of Business Research, 94, pp.367-377.
Miao, Y., Zeng, Y. and Lee, J. Y., 2016. Headquarters resource allocation for inter-subsidiary
innovation transfer: The effect of within-country and cross-country cultural
differences. Management International Review, 56(5), pp.665-698.
Abugre, J. B., 2016. The Role of Cross-Cultural Communication in Management Practices of
Multinational Corporations (MNCs) in Sub-Saharan Africa. In Sustainable Management
Development in Africa (pp. 135-152). Routledge.
Abugre, J. B., 2018. Cross-cultural communication imperatives. critical perspectives on international
business.
Hermans, M., 2018. Comparative HRM research in South America: a call for comparative
institutional approaches. In Handbook of Research on Comparative Human Resource
Management. Edward Elgar Publishing.
Morgulis-Yakushev, S., Yildiz, H. E. and Fey, C. F., 2018. When same is (not) the aim: A treatise on
organizational cultural fit and knowledge transfer. Journal of World Business, 53(2), pp.151-
163.
Qin, C., Wang, Y. and Ramburuth, P., 2017. The impact of knowledge transfer on MNC subsidiary
performance: does cultural distance matter?. Knowledge Management Research &
Practice, 15(1), pp.78-89.
Gu, F. and Nolan, J., 2017. Performance appraisal in Western and local banks in China: The influence
of firm ownership on the perceived importance of guanxi. The International Journal of Human
Resource Management, 28(10), pp.1433-1453.