Zara: Organizational Culture Analysis, HR Practices, and Communication

This report provides a comprehensive analysis of Zara's organizational culture, focusing on its operations, particularly in the context of its expansion into the Hong Kong market. It examines Zara's HR practices, including workforce planning, employee relations, and recruitment strategies. The report de...Read More

Analysis of the culture of an
organization

Table of Contents
INTRODUCTION...........................................................................................................................1
Aims of project................................................................................................................................1
Literature..........................................................................................................................................2
HR organizational practice and cultural dimension in Zara........................................................2
Trompenaarss and Hofstede models of change culture and business environment....................4
Performance management system across culture........................................................................6
Performance management Behaviours........................................................................................8
Issue of cross culture communication in Zara.................................................................................9
CONCLUSION AND RECOMMENDATIONS .........................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Culture of an organisation define as a process which follow by a company to operate all
activities in an appropriate manner. Zara is one of a largest Spanish clothing retail company
which is operating its business from last 43 years. They deal in various environment and their
culture is based on area where they are operating their business. This present study is based on
Zara operations in Hong Kong where they want to gain market share. The major aim of this
project is to analyse the culture of an organisation and business environment in which they are
dealing. The business analysis get done through PEST analysis in which operations getting done
in an effective manner (Alkailani, Azzam and Athamneh, 2012). Company want to enter into
market of Hong Kong where they have to identify the segments of market users. For this
company have to formulate appropriate entry strategy. Hong Kong is consider as one of a
country who lead to adopt emerging fashion trends. Authority have to use appropriate change
model to deal with variances which are taking place in business environment. Few of them are
Lewis change model, McKinsey 7's model and Kotter 8 step change model. All these are helpful
for Zara when they are going to deal in different business environment and change their culture
according to users and employees.
Aims of project
Several major aims of this project is to:
 To identify the HR practices which are taking place in Zara
 To introduce their business in new market world
 To measure the issues of cross culture communication process in Zara
These projects aims aid in making a valid conclusion for report so that whole work get done in
an adequate manner without suffering heavy loss (Alvesson and Sveningsson, 2015). As when
Zara is going to establish their business in Hong Kong their HR department have to focus on
recruiting such number of employees who support them in identify the users demand and
requirement which is beneficial for them in manufacturing desired quality brands and clothes. As
for this, managers have to select only such number of associates who have good market
knowledge and well aware about each and every sort. As well as when Zara is going to deal at
new market various opportunities are going to welcome them. As they are already a well
established brand and for this they have to introduce many new offers at new world. Moreover,
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all factors which are going to affect their business also have to get measure through which
appropriate strategy can be framed (Alvesson, 2012). One of a issue for a company is dealing
with cross culture communication process in which it become hard to pass information properly.
Literature
HR organizational practice and cultural dimension in Zara
Leaders of Zara have to measure all the things which are associated with new business
environment so that they can deal adequately. As they have to change their business culture also
which is as per business environment. Hong Kong have emerging environment in which new
trends and fashion aid them in gain maximum market share. For this, they have to first identify
the political situation of a country in which in which government imposed some rules and norms
on them. As for this, management have to measure them and make their strategies according to
that. Leaders play an effective role in such concern. They have good market knowledge and well
aware about policies of a company. Hence, they guide all employees and associates of their
corporate through which they can generate more and more profit (Ang and Van Dyne, 2015).
Zara culture of working is customer co-relation in which they put their users first and then
everything. This is a one of a major strength of a company in which brand loyalty and users
preference plays an essential role. Leaders of an organisation have to guide all associates that for
entity their users trust and faith is must.
Company produces more stylish accessories and clothes for each age group person. As
this is consider as major reason behind the success of company. Moreover, Zara can gain benefit
of established brand name and image of a company is appropriate. As to deal with first aim of
this project, leaders have to play their role appropriately through which they can communicate
each sort of information properly.
One of a major issue which is taking place in Zara is Unfair labour practice. As this lead
to harm their image which is not appropriate in nature. Moreover company have super supply
chain through which they can deliver their products within 10 to 15 days. As this is helpful for
them in available their manufacturing on time. Fro effective leadership working, HR plays an
effective role in which they have to maintain appropriate relation with all leaders. There are
various number of HR practices are found out through which Zara can work properly.
1. Structured governance and business case development
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2. Developing advanced workforce planning
3. Implementing the right HR philosophies.
4. Create healthy relationship with every business leader
5. Formulate appropriate HR organisational design
6. Improve HR system so that employee can communicate easily
7. Develop appropriate strategies for outsourcing and recruitment
As by applying all these things, human resource department and leaders can work together in
favour of business (Cambridge, 2012). As this is helpful for them in implementing each project
effectively. Zara human resource department have to coordinate with all of their leaders and
maintain change strategies which enable them to sustain at new and emerge market.
Culture dimensions refer to as barriers which restricts in operating project effectively. For
this purpose one of a major issue in developing business at Hong Kong is cross culture
communication. All workers of a country belong to distinct pattern in which their values are also
different. Like from establishment Zara is a Spanish company hence, their culture is based on
host country. But now they want to develop their business in Hong Kong and for this leaders and
HR of a company have to measure the consequences and issues which are facing by them in new
market development (Chhokar, Brodbeck and House, 2013). As various HR practices provide
some benefit to a company which are as follow:
 Broader knowledge of current world trends in which management can apply appropriate
thinking in business without any conflict.
 Moreover, by dealing with various number of people, HR can learn about different
problem solving approaches which enable them to deal with variety of issues.
As both these things are helpful for Zara when they are going to introduce their business in Hong
Kong. They are going to deal with diverse needs of individuals which are differ fro their comfort
zone. Various companies follow different culture as their working practices get affected through
that. In some organisations, power culture is follow but on the other hand some use role culture.
Zara is using the person culture in which they are working effectively by taking their employees
in account. As by this, their rules and policies get framed according to their employees so that
they can work effectively and their performance get enhance. Performance enhance through not
to enforce employees by working diversely. As by working together and effectively improve
working of individuals as well as company can ascertain their targets effectively.
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Trompenaarss and Hofstede models of change culture and business environment
When working in new and diverse environment, it is a major duty of leaders and
managers to find out the behaviour and culture of various personalities who lead to support in
working effectively. There are two famous scholars are helpful in dealing with performance
measurement and behaviour of a Zara. Trompenaarss and Hofstede both have different views and
points which are concerned with culture. As per this, Hofstede model is based on short term and
long term orientation but Trompenaarss model signifies about the internal and external working
culture (Hofstede, 2011). The research about about culture differences for marketing is still
consider as a new field for investigation. Hence, by applying this approach into a business a
whole subject of culture get measure as well as generalisation and classification of this concept
also get done.
Hofstede model is based on the culture of people behaviour. According to scholar, the
major problem which occur in an organisation due to differences in behaviour. Zara is going to
deal in new market world and for this they have to approach various number of persons who
belong to different culture (Minkov and Hofstede, 2011). This lead to create issue in operating
business properly. All the culture are different from each other and companies get vary according
to culture in which they are operating business. It leads to create issue in operating and managing
business properly as lead to affect communication process also. Leaders of a company have to
know how to act and communicate with other personalities of an organisation. To solve this
problem which occur due to different sort of persons, there are five major factors are find out:
individualism/collectivism, masculinism/feminism, uncertainty avoidance, power distance and
long term/short term orientation. All these are applied on different countries of the world
(Hofstede’s 5 Dimensions Model, 2015).
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Trompenaarss model is a cross culture communication which usually applied on the
general business and management. In an organisation, there are various number of people work
together which are belong to different culture (Colquitt and et. al., 2011). As for this, better
understanding of culture of various people is must as it enable in taking appropriate decision and
prevent misunderstanding which arise between various individuals (Goetsch and Davis, 2014).
Trompenaarss model culture model signifies seven dimensions of culture which provide a
support in measure the people who belong to different culture and appropriate decision can be
carried down for them. This model has been used on Zara which is one of a largest clothing
company in which various people work together which are belong to different culture. For this,
leaders and managers have to apply seven dimensions of this model in their business so that they
can gain appropriate outcome and prevent conflicts between each one of them.
 Universalism/ Particularism
 Individualism/ Communitarianism
 Specific/ Diffuse
 Achieved status/ Ascribed status
 Inner direction/ Outer direction
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Illustration 1: Hofstede culture dimension model, 2015

 Sequential/ Synchronous time
 Equality/ Hierarchy
Zara can use this model because their business is all over the world and they are going to
inaugurate their new outlet at Honk Kong. For this, they require several number of individuals
who support them in working properly (Jackson, 2011). Moreover, leaders and managers of a
company have to know about every associate of their organisation and take adequate step for
that. By applying this dimension, they can increase their outcome as well as number of
misunderstandings in a firm get minimise. Hence, when dealing with diverse people,
management can apply this model in business for growth (Trompenaars’ model of national
differences, 2017).
Performance management system across culture
Performance is termed as the function which get done by an individual in attain their set
objectives and targets. Measurement is regarded as the identification of act which done by a
person. Performance measurement is a process of collecting, analysing or reporting information
regarding the performance of a group and individual (Migliore, 2011). Performance management
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Illustration 2: Trompenaars' Seven Dimensions of Culture, 2017

system is define as a fundamental goal of business which is use to improve and promote
employee effectiveness.
It is a process where leaders and managers actively participate in measure that all
associates are working in right direction towards achievement of targets or not. For attain of all
targets in an effective manner, motivation is consider as major thing which enable an entity to
work more appropriately towards working. The sole purpose of performance management
system is to ensure that all people are working according to their duty which further lead to
contributing overall business objectives. For achievement of targets, motivation is consider as
major factor through which an individual can work more efficiently. Hence, management have to
use adequate step through which they can motivate their employees so that they can work in
more absolute way (Moran, Abramson and Moran, 2014).
Zara is one of a largest clothing company which lead to deal at international market in
which they have already establish their company as a brand. They want to set up their business in
new market for Hong Kong and for this management have to measure their demand. They
require some work force in dealing with various users requirements (Naranjo-Valencia, Jiménez-
Jiménez and Sanz-Valle, 2011). Hence, their employees are obliged to perform their duty in an
adequate manner through which they can render their service at new market effectively (Osland
and Turner, 2011). Their overall associates contribution is more for a company and for this,
leaders and managers have to take the initiative. They have direct relation with all of their
employees so they are more aware about their interest and for this, authority have to use
appropriate step through which they can motivate them. According to Trompenaars “Motivation
is about what we can give
to a person now so that he or she will
work better in the future.” leaders have to take this definition in their account and use
appropriate tool through which they lead to motivate persons who belong to different culture.
Motivation is also get vary according to culture or a person choice in which some require
monetary motivation where as some need non monetary encouragement. As this factor is helpful
in ascertain all objectives which are related with new market and different culture people. For
motivation, there are various sort of theories can be used by managers in which MasLow
Hierarchy need of motivation is widely used terminology. As this is helpful in finding the
adequate need and requirement of a person.
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According to performance management system, there are six major steps are found out
which have to take in account by managers of Zara when they are going to deal at Hong Kong
market (PERFORMANCE MANAGEMENT, 2017):
 Performance management policy
 Performance objectives and standard
 Performance appraisal process
 Managing underperformance and discipline
 Reward and remuneration strategy
 Development plans and learning and development activities
Performance management Behaviours
Performance is define as the goal setting which is necessary for a company to deal at
keen competitive market. Zara have to formulate several number of objectives when they are
going to establish their store in Hong Kong. As by setting such goals and targets they become
able to guide their employees to work in any diverse situation (Powell and DiMaggio, 2012).
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Illustration 3: PERFORMANCE MANAGEMENT, 2017

After formulating the goals, management have to maintain adequate communication with
each of their employees so that they can deal with every goal in a well defined manner. As for
this, leaders and managers of Zara have to communicate it with their associates so that they can
carry out targets properly (Rockstuhl and et. al., 2012).
Once all these things get done, authority have to use proper resources to deal with all
goals and objectives. In such relation, proper utilisation of resources is consider as major thing
because they are limited in nature. For proper use of resources, management have to motivate
their employees. As by encouraging them, company can accomplish all of their targets in an
adequate manner which is must (Schneider, Ehrhart and Macey, 2013).
For meeting all such things, Zara managers have to use McClelland approach in account
through which they can deal with basic needs of their individuals. Hence, performance
management is based on behaviour of different groups who lead to work together at workplace.
By using adequate motivation method, company can satisfy them according to their needs and
requirement. Zara have to use McClelland approach in which there are three major things are
stated:
 Achievement
 Affiliation
 Power
According to this scenario, achievement refer to as when an individual has strong ability to
perform every task. By this, managers have to choose only such employees who can perform
every task and motivate them through providing challenging projects. Affiliation signifies as
when a person lead to work in group and by this, it get motivated through assigning group
projects. Power approach is when, a person is highly influence to take decision and win
arguments (Shi and Wang, 2011).
Issue of cross culture communication in Zara
Cross culture communication is define as the procedure in which management deal with
various people who belong to different aspects which are present at workplace. In this changing
of ideas, methods are taking place between one culture individual to another one. Zara is one of a
largest clothing company which is already a well established brand. While opening a store at
Hong Kong they lead to deal with different society personalities. This fact create issues between
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them which is not appropriate for long term purpose of business. Following are several number
of barriers which are present at Zara when they lead to deal with CCC:
 Concept of stranger which leads to increase anxiety
 Assumption of Similarity
 Stereotype
 Prejudice
These are certain number of barriers which examine in Zara at the time of dealing with various
number of individuals. They have to take appropriate decision through which they can resolve all
issues which occur due to cross culture communication process (Tsai, 2011).
CONCLUSION AND RECOMMENDATIONS
According to above discussed report it get identified that analysis of culture of an
organisation is must. As this enable in dealing with various number of people which belong to
different culture as well. For establishing a business at new market, management have to set
several number of aims of project on which working is must. For executing the task properly
leaders, managers and human resource managers play an effective role. Along with this, there are
several number of theories are used by a company to prevent misunderstandings from various
culture group individuals. There are several number of barriers are found at cross culture
communication which have to get improved. In such field there are few recommendations are
provided in favour of that. Organise activity so that every person know each other this lead to
reduce the concept of anxiety. Stereotype is not consider a perfect term in business where every
society, religion people work together. Thus, managers and leaders have to use adequate steps
and recruit such number of employees which do not link up with them with such type of old
fashioned things and message.
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REFERENCES
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Alvesson, M., 2012. Understanding organizational culture. Sage.
Ang, S. and Van Dyne, L., 2015. Handbook of cultural intelligence. Routledge.
Cambridge, J., 2012. Investigating national and organizational cultures in the context of the
international school. International Education, Principles and Practice. pp.197-211.
Chhokar, J.S., Brodbeck, F.C. and House, R.J. Eds., 2013. Culture and leadership across the
world: The GLOBE book of in-depth studies of 25 societies. Routledge.
Colquitt, J., and et. al., 2011. Organizational behavior: Improving performance and commitment
in the workplace. McGraw-Hill Irwin.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hofstede, G., 2011. Dimensionalizing cultures: The Hofstede model in context. Online readings
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Jackson, T., 2011. From cultural values to cross-cultural interfaces: Hofstede goes to Africa.
Journal of Organizational Change Management. 24(4). pp.532-558.
Migliore, L.A., 2011. Relation between big five personality traits and Hofstede's cultural
dimensions: Samples from the USA and India. Cross Cultural Management: An
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Minkov, M. and Hofstede, G., 2011. The evolution of Hofstede's doctrine. Cross Cultural
Management: An International Journal. 18(1). pp.10-20.
Moran, R.T., Abramson, N.R. and Moran, S.V., 2014. Managing cultural differences. Routledge.
Naranjo-Valencia, J.C., Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation or imitation?
The role of organizational culture. Management Decision. 49(1). pp.55-72.
Osland, J. and Turner, M., 2011. The organizational behavior reader. Pearson.
Powell, W.W. and DiMaggio, P.J. Eds., 2012. The new institutionalism in organizational
analysis. University of Chicago Press.
Rockstuhl, T., and et. al., 2012. Leader–member exchange (LMX) and culture: A meta-analysis
of correlates of LMX across 23 countries. Journal of Applied Psychology. 97(6). p.1097.
Schneider, B., Ehrhart, M.G. and Macey, W.H., 2013. Organizational climate and culture.
Annual review of psychology. 64. pp.361-388.
Shi, X. and Wang, J., 2011. Interpreting hofstede model and globe model: which way to go for
cross-cultural research?. International journal of business and management. 6(5). p.93.
Tsai, Y., 2011. Relationship between organizational culture, leadership behavior and job
satisfaction. BMC health services research. 11(1). p.98.
Online
Fons Trompenaars' Seven Dimensions of Culture. 2017. [Online]. Available
through:<https://sevendimensionsofculture.wikispaces.com/Trompenaars
%27+Seven+Dimensions+of+Culture>. [Accessed on 18th August 2017].
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PERFORMANCE MANAGEMENT. 2015. [Online]. Available
through:<https://www.ahri.com.au/assist/performance-management >. [Accessed on
18th August 2017].
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