Cultural Implications of Employee Voice for Multinational Corporations

This essay delves into the cultural implications for multinational corporations (MNCs) regarding employee voice. It begins by defining employee voice and its formal and informal aspects, setting the stage for an examination of different approaches to employee participation. The essay explores how cultural dimensions, such as power distance and individualism-collectivism, influence national preferences for voice, no voice, or varied forms of employee expression. It provides insights into the challenges faced by MNCs due to these cultural differences, particularly between home and host nations, and supports its discussion with empirical illustrations and case studies. The analysis considers how these cultural nuances affect employee satisfaction, productivity, and overall organizational outcomes, emphasizing the importance of understanding and adapting to these diverse perspectives for effective leadership and management within a global context. The essay highlights how different models of employee voice, like direct interaction and collective bargaining, are perceived and implemented across various cultures, and how these differences can lead to difficulties and require strategic adaptation by MNCs.

International Culture and Communication

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Table of Contents
Introduction......................................................................................................................................2
Focus on Employee’s Voice and Different Approaches..................................................................3
Cultural Implications of Employees Voice......................................................................................5
Different national preferences for voice/ no voice or different forms of voice...........................7
Implications of Multinational Companies.....................................................................................10
Difficulties due to various cultural traditions of employee voice between home and host
nations........................................................................................................................................11
Conclusion.....................................................................................................................................13
Reference List................................................................................................................................14

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Introduction
This study aims to examine the cultural implications for international companies of various
approaches towards the Employee voice. Employee voice is described as a mean of expressing
concerns about workplace policy and offering insights into how the circumstances on the job can
be improved (Hyman, 2018). There are two kinds of Employee voice: formal and informal,
within the notion of the employee voice. Informal employee voice is subjected to the capacity of
providing feedback on a daily basis to address issues (Mowbray et al. 2015). Formal employee
voice is described as the employer’s structured communication channels, including grievances
schemes and employee surveys (Kaufman, 2015).
The expression of MNC refers to the organizations operating in many different countries but
managed from a single (home) country. The enterprises that derive part of its operational revenue
by operating outside home country are regarded as multinational corporations. Having the
opportunity of a centralized head office assists those organizations in managing all its operations
in effective ways along with having strict level of monitoring from upper management. The
Multinational Corporations have four categories including decentralized corporation with
presence in home country, centralized corporation, international organizations building on parent
company and transactional enterprise, as a combined approach. Therefore, the MNCs are linked
with the help of availability of centralized head office, from where, stringent control and
monitoring is done over all the branches of the enterprise that are located in different countries.
Thus, through effective arrangement of centralized management the MNCs are linked.

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Focus on Employee’s Voice and Different Approaches
According to Wilkinson and Barry (2016), participation can be distinguished indirect interaction,
upward problem solving or representative involvement. The first two are mainly direct and
personalized, frequently through face-to-face interaction amongst the supervisors or the first line
executives as well as their staffs. Some take the form of oral or verbal casual involvement. While
some take the form of written data or suggestions. The third type focuses on the role of
employees voice or trade -union officials through processes such as joint consultations,
executives or collective bargaining in debates between executives and employees These types of
involvement also helps in answering the questions pertaining to how financial advantages are
assigned, who decides how they are distributed and what the financial and economic context
affects them.
This is important to give employees a voice because this ensures inclusion of the employees in
important decision making and this helps the management in understanding the issues and
problems from the viewpoints of the employees. This is the reason why giving employees a
voice is very important. This voice takes a very effective form in case of assisting the
management in taking important decision making.
Cheng et al. (2018) illustrate voice framework, where the discontent can be articulated by means
of giving up or complaining, was dominated by many investigations into individual employee
voice. A great deal of this study is strongly linked with the existence of worker unions. The exit-
voice structure at individual level shows that unions will be less likely to withdraw because
syndicated grievances provide a voice system (Belizón, 2019), which impacts the choices made
between exit and voice (Lopes et al. 2017). Their allegiance is also less likely to be the case.
Freeman and Cheng et al. (2018) at an organizational level maintained that syndicates not only

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give employee voice but that, because of the collective, multi-majority decision making, this
collective voice is financially superior to exit and individual voices. Therefore, much of the
traditional studies have concentrated on analyzing the extent to which compensation, advantages
and productivity in labour unions are affected (Ruck et al. 2017) and the way the voice functions
is implicit rather than explicit.
Much of the literature on human resources management also supports the value of participatory
involvement and employee voice, although it is often very important that staff make a more
effective contribution to their enterprise through their abilities and understanding. Employee’s
voice has, therefore, a high level of human resource management. The study by Ruck et al.
(2017) indicates the fact that the employee voice can enhance organizational results. Although
imperatives of companies could lead to greater voice and involvement of employees, these
initiatives are also integrated into notions of industrial citizenship and organizational democracy
(Ruck et al. 2017). In addition, these ideas are based on even more basic concepts of freedom
and expression and human dignity, often shown in political, religious and moral terms.
Therefore, two issues concerning voice can be made out: the way employers communicate the
employee voice in the light of regulation, and the link among employee voice and satisfaction
and its effectiveness.
Four distinct expressions of employee’s voice are identified by Kwon et al. (2016). First, Voice
has been defined as employee discontent directed at a particular problem or leadership problem.
Secondly, the voice could be the expression of the collective organizations, which are the
compensatory source of the leadership authority. Thirdly, voice agreements contribute towards
the decision-making in leadership and are mainly worried about improving effectiveness and
productivity, which is often linked to high participation leadership an high level of engagement

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in projects. Fourth, another voice can be articulated through a mutual concern in the form of a
relationship between employee and other employees to ensure the organization and its staff's
long-term viability and sustainability. Overall, it can be based on a financial, moral/ethical and
pragmatic basis to put voice into practice on the job.
Cultural Implications of Employees Voice
Formulated employee participation within the participative oriented climate and culture
encourage the workforce to voice their ideas in the nations that have very small power distance
culture. However, it has been found that in the large power distance cultures, formal employee
involvement is significantly associated with employee voices merely under the influence of the
perceived participative climate (Lee et al. 2017).
Hofstede stated that people in nations with small power distance culture is likely to take gradable
inequalities as a matter of course and are less likely than people of nations with large power
distance culture for raising concerns with superiors so that direct contacts with those people in
power cannot be avoided (Beugelsdijk, & Welzel, 2018). Therefore, reliant on the degree of the
energy gap in the cultures of the countries where the organizations are situated, there may be
significant and consistent differences across nations.
At the same moment, people are increasingly recognized as culturally valuable (Wilkinson &
Barry, 2016). In contrast, when workers from nations with a bigger power distance culture were
offered chances to take part in decision making in comparison with nations with a small power
distance culture, they became less productive and more satisfied with their jobs. These results
indicate that leadership practices directed at breaking the corporate silence may not affect staff
across countries to the same degree. This is backed by additional proof demonstrating that people

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who tend to convey their anger less publicly in nations with small power distance culture such as
the US show their frustration ritualistically, rather than directly, which is in the case of country
like Japan which is large power distance country where they show their anger and voice up
directly (Ruck et al. 2017).
Morrison and Milliken’s (2000) theoretical model could identify two voice practices that
could help in reducing the level of organizational silence: The degree of official employee
participation as well as contribution in decision-making along with the feedback operations
(structural) and the extent to which leadership (social) promote a participatory climate. The
extent of employee participation is referred to in multiple formalized operations, such as the
quality management conferences, conferences of management change and programs of team
building using the word formalized employee participation.
Morrison and Milliken's (2000) asserted the fact since the staffs that are more powerful and
distant tend to embrace the conduct of those in charge uncritically, executives may find it harder
to encourage them to talk because their conduct does not reflect their inherent cultural
knowledge. Intercultural surveys show that the subordinates from the nations with bigger power
distance culture tend to react in a less favorable manner to leadership methods that encourage
more participation and decision-making by employees. For example, the 1999 research by Eylo n
and Au indicates that participation in employees is not necessarily leading towards enhanced job
satisfaction and performance for individuals from highly powerful nations. Rather, their findings
indicate that in less participatory circumstances, individuals from more powerful nations showed
higher work efficiency.

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Fons Trompenaars Model of Culture Dimensions was developed with the theory that each and
every culture has its own way of thinking. All cultures just do no randomly differentiate from
each other; they differ in very predictable and specific ways.
Different national preferences for voice/ no voice or different forms of voice
Employee voice and participation is the concept, the underlying implication of which is different
in case of different nations and in most of the cases, the concept of employee voice has been
described according to the concepts entertained by the culture of work and organizations in that
nation. There are different forms of voice in different nations, under which, the employees are
provided with authority of participation in varied levels and varied contexts. As described by
Aryee et al., (2017), there are different disciplinary traditions in different nations, based on
which the extent of voice is regulated by the business enterprises in those nations. In many cases,
for ensuing higher level of day-to-day relation maintaining between supervisors and employees,
higher level of voice is granted to the employees. On the other hand, in case of nations with
power-centric culture, the extent of employee voice is quite restricted as well as suppressed. As
stated by Zhou et al., (2017), this specific reason can be better explained in the light of
considering cultural dimensions by Hofstede. The extent of preferences for voice is mainly
dependent on extent of the individualism-collectivism and power distances in the nation, on
which the cultural dimension of the countries is dependent. This is mainly the reason of voice,
no-voice and different forms of voice (Mowbray, Wilkinson & Tse, 2015). This is also
dependent on following aspects.
Universalism vs particularism:

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This dimension can be summed up by wondering what is more important, laws or relations>
universal culture tries, even with friends and loved ones, to treat all cases the same. More than
the connection the focus is on regulations. Canada, US and UK and Australia are of Universalist
cultures. Relationships are more essential than guidelines for vultures based on particularism.
You can bend laws for members of the family, close friends or key persons. In light of its unique
merits, every case needs to be examined. Latin America, Korea, China and Russia are among
particular culture (de Jong & Warmelink, 2017).
Individualism and Communitarianism:
Individualistic cultures think that life results are the outcome of the decisions made. Decision
makers take choices in these societies, and they do not have to consult with others thus speeding
up the decision making. Canada, UK, US and Australia have an individualistic culture.
Community cultures think that when individuals assist each other, the quality of life becomes
better. These cultures are thus organized around organizations. The allegiance within the group is
powerful. This group inclination leads to slower decisions as all contribute. Communitarian
cultures include Japan, Africa, Latin American countries (de Jong & Warmelink, 2017).
Neutral vs Affective:
People do not show or share their emotions in a neutral culture. Though they are naturally felt by
the individual, secrecy is maintained in a controlled manner. Germany, Netherlands and UK are
such countries.
On the other hand, people are willing to share and show their emotions in an effective culture
and even in the workplace. Example of such culture includes Spain, Italy and Latin America (de
Jong & Warmelink, 2017).
Specific vs Diffuse:

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Personal and professional life is kept different in a specific culture. They do not see any relation
between the two spheres. The people in this type of culture are typically direct and focused on
their point in communication. Focus is more on the goal rather than relationship. US, UK
Germany are such examples.
In regards to diffuse culture, people tend to see a connection between personal life and work life.
They believe that goals can only be achieved if relationships are strong. Example of such
cultures is India, China, Spain and Argentina (Filimonau et al. 2018).
Achievement vs Ascription:
Status is earned on the basis of an individual's knowledge, and also job titles are earned on the
basis of skills and knowledge in the achievement culture. These countries include the US, UK,
Germany.
Status to an individual is provided on the basis of who is that individual. This includes social
status, age and experience. Respect is earned by showing commitment to the organization rather
than abilities. Such cultures are found in Japan, Italy and France (Filimonau et al. 2018).
Sequential time vs Synchronous time:
Time is treated as to be crucial in sequential time culture. It is crucial to finish the given amount
of work in time as because time is money. It is considered to be unethical to be late in meetings
in these cultures. Example of this culture is the US, UK and Germany.
Past, present, and the future seem to be related among the people in synchronous time culture.
This is the reason people tend to do numerous tasks at once. This makes plans and deadlines
more achievable. Japan, India and Mexico have such cultures (Filimonau et al. 2018).
Internal vs External Direction:

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According to the people having internal direction culture, the environment can be manipulated in
order to achieve the goals. Winning is an important factor in this kind of culture. Examples are
the US, UK and Australia.
People believe in working along with the environment in order to achieve the goals in External
direction culture. For them, winning is not as important as compared to maintain a strong bond.
Examples of such culture are China, Russia and Saudi Arabia (Filimonau et al. 2018).
Illustrative Case Study
For instance, in Japan, the society believes in distributed equality among all people and this
similar opinion also is applied in business organizations in Japan, where voice of employees is
respected and granted by management. In Toyota and Mitsubshi organizations in Japan, due to
effective hierarchical structure of management, equality of employees in decision making is
respected (Janssen & Gao, 2015). Thus, voice of employee is high in these organizations.
Implications of Multinational Companies
Multinational companies, in general, provide the developing nations with an extremely large
number of benefits. But there is also a flip side to it. The host country in which the Multinational
Company is setting up that might have a lot of implications. These companies have a relaxed
ethical code of conduct, and that may lead to the exploitation of the neediness of the countries in
which it has set up instead of working towards the social and economic development of the host
country. When a multinational company invests in a host country, the radar at which the
investment takes place is supposed to be significant (Beugelsdijk & Welzel, (2018). However,
that depends upon the size of the firm. Obviously, the government offers inducements to the

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firms in the forms of various tax breaks and grants and subsidies to attract more and more
investment.
Difficulties due to various cultural traditions of employee voice between home and host
nations
The MNCs have to constantly maintain an act of balancing between “global standardization” and
“local responsiveness”. Global standardization can be defined as a very broad aspect. Global
standardization refers to the sameness, alignment and transparency in a framework that is
geographically fragmented, but that is done in order to achieve some predetermined common
objective. It is more of a market-based approach which is done to intensify efficiencies. It
exhibits a feeling of equal treatment among all the employs discarding any such feeling of
discrimination that may arise. In addition, it establishes a sense of transparency in inter as well as
the intracompany framework. Local responsiveness, on the other hand, refers to showing close
regard to the local cultural values and tradition, employment values, cultural values, government
policy, legislation practices, etc. This is done to retain the employee's commitment to the
company and also reducing turnover. In addition, another significant implication might be that
the voice of the home country sits rather uncomfortably with the host country (de Jong &
Warmelink, 2017). That causes a significant number of conflicts. The main challenge of the
Multinational companies is that it is supposed to formulate a standardized framework, which will
work efficiently in all the countries where it is functioning. If that is effectively done, it will
ensure the proper functioning of the external functions of the company. If not, the structural
framework of the company would fail and only incur losses.