International HRM: Cultural Shock, Virtual Teams & Expatriate Role

This essay examines the impact of cultural shock on expatriate performance in international organizations, with a focus on Barclays and Cadbury. It utilizes Hofstede's model to analyze cultural dimensions and their effects on expatriates. The essay also discusses how these companies encourage multi-cultural working environments and leverage virtual teams to manage geographically dispersed workforces. It highlights the strategies employed by Barclays and Cadbury to manage cultural diversity through communication, team-building, and involvement, and how virtual teams contribute to the companies' success in the global market by facilitating research and development, financial management, and overall business target attainment. Desklib offers this essay and many more resources for students.

International HRM Practice
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Table of Contents
Examination Questions....................................................................................................................3
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..........................................................................................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
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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 Dimensions UK (Barclays
and Cadbury)
Impact on expatriate performance
Power distance 35 Lower power distance rank is indicating the dominance
of inequalities in culture which negatively impact on the
performance.
Individualism 89 People want to lives individually which indicates
interdependence in the people (Hofstede Insight, 2018).
It enhances rivalry in working culture to survive which
creates a healthy rivalry in employees.
Masculinity 66 UK has high masculinity factor which indicates the
culture is fully driven with competition and success. It
motivates the expatriate to perform better.
Uncertainty
avoidance
35 It indicates that people are not aware about the
uncertainty (Hofstede Insight, 2018). It impacts
positively on the performance to live a better life in their
life.
Long-term 51 This score indicates the relevance of people with past
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orientation factors (Hofstede Insight, 2018). It impact on the
expatriate negatively because it force them to adopt
British cultures and traditions to work.
Indulgence 69 It indicates the control on desires of the people which
impacts negatively on the performance expatriate in
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.
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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).
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References
 BARCLAYS, 2018. Diversity and Inclusion, [Online]. Available at:
https://www.home.barclays/about-barclays/diversity-and-inclusion.html [Accessed on 21
April 2018].
 Furham, A., 2012. Culture shock. Revista de Psicologéa de la Educación, 7.
 Hofstede Insight, 2018. Country comparison, [Online]. Available at:
https://www.hofstede-insights.com/country-comparison/the-uk/ [Accessed on 21 April
2018].
 Stahl, G.K., Björkman, I. and Morris, S. eds., 2012. Handbook of research in
international human resource management. Edward Elgar Publishing.
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