Case Summary Of Home Furniture Ltd Business Essay

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Home furniture Ltd was establish on 1970 and located at Tampere, Finland as headquarters. The company flourished the business in producing affordable furniture and favoured by most of the people's. Initially, the company set the business in Europe, and then expand in other region of the world, As an example : North America, Arab and Asian Countries. The company has 1750 employees, they are skills and semi-skills employees.

The company expand the business internationally, First expanding in Europe, US and Asia. The company has faced up with some problem after the expansion. The have faced different kind of problems, the problems arrive when working in team, providing incentives individually. The management of US create problems such as foster performance pay while the parent company give priority to other feature of employee relation, like participation of employees through work councils. Moreover, the US management has different perception of teamwork when the parent company introduce teamwork.

In 2007, the company has new CEO. The new British CEO has. Take initiates to improve. The communication system, change he to English language developed the policies, throughout all operations of the company. Moreover, the new CEO has to deal with some negative publicity such as. unpaid overtime, health and safety issues. There allegation relate to mainly Tunesia and China. The new CEO then attempts to implement some decisions relation to Human Resource which is creation of the executives at corporate level. The Human Resource executive and CEO also attempts to create corporate training programme, variation of reward schemes and develop Human Resource tools and others.

2.0 Summary of Five Dimension.

1. Power Distance - Power Distance defines the degree of equality and inequality between a culture. According to (Mullins, 2007) power distance is vital to classify levels of in equality in an organisation


America has low power distance. The have equal rights in all aspects of American society and government. Organisation in America can be seen as convenience and always accessible. The manager always have trust on their employees and teams. The managers and employees are share information frequently. Besides that, their communication is informal and direct.

Asian Countries and Arab

Asian Countries and Arab has high power distance. The organisation has hierarchical order which reflecting inherent qualities. The employees expected the manager to tell what to do (The tasks). Moreover, the Asian countries and Arab bosses are autocratic and all their decision are centralised.

2. Individualism vs collectivism - Individualism defines the people who are concern on their own self and their family only and collectivism defines the people who concern on their team members, expected to have strong and close relationship with everyone.


Its look like America are high individualism. Their concern on ownself and their immediate family only. There also have high degree of geographical mobility and familiar to do business with strangers. Moreover, the employees are expected to be intuitive and their promotion is based on market value.

Asian Countries and Arab

Asian countries and Arab employees are socially taking responsibility of their team members. There are considered as collectivisms society. They are more concern about group members, colleagues and have strong relationship with everyone. As an example join family gathering, birthday functions and other social events.

3. Masculinity vs Femininity - Masculinity concern on competition, high performance, competitor and femininity are concern on relationship and friendly working environment.


America has high masculinity and low femininity. The male leader are driven by competition, company performance, achievement. Their main focus is on how well the organisation is performing, .how to acquire more success and others. American are receiving more monetary rewards and higher status.

Asian countries and Arab

Asian countries and Arab has high masculinity with high success oriented, good performance. Their focus on equity and competition.

4. Uncertainty Avoidance - How comfortable people feel in uncertain and indistinct within the society.


The country have high degree of acceptance of new ideas/suggestion They likely to try new working systems/invention. They prefer to receive ideas from others.

Asian Countries

Asian Countries has low uncertainty avoidance. They have relaxed attitude. Moreover, they focus more than principles and deviation.


Arab has high Uncertainty avoidance. They are very hard working and precision.

5. Long term orientation - value placed on determination status.


America has short term oriented culture. They more focus on tradition. America organisation's business performance based on short term with profit and loss statements. The statements are issued on quarterly basis. Moreover, the individual employees are loyal and expect to receive quick performance result.

Asian countries and Arab

Asian countries and Arab are has high long term orientation. There follow tradition and also focused on the past. As an example : Toyoto follow Kaizan method to continuously improve working system.

3.0 Policy needs to consider when operating and employing multicultural employees

The new Home Furniture CEO firstly needs to gather the information and understand about how to manage various countries employees. The new CEO must come out with variable management policies , effective human resource policy and other related policy in order to achieve the organisational goals and also to create effective cultural diversity in organisation. Therefore, few management policies are given for the Home Furniture CEO's consideration :

3.1 Leadership styles at America, Asian Countries and Arab

Leadership styles at America ( Taleghani, et al., 2010)

North America have been practice one of five leadership styles such as participative, empowering, celebrity, charismatic and directive. America can considered as less freedom of action for boards and executives than in Asia. America have non compulsory thought, they believe in change and performance of job rather than fate acceptance. America acknowledge as most individualistic society in the world. They prefer to enjoy their personal life and success as individual. The leaders are put hard work in their career and they always have planned and know what to do and when. Moreover, the leader believe that they can achieve their success through invention.

Leadership styles at Asian Countries and Arab ( Taleghani., et al, 2010)

In Asian countries and Arab, their leadership behaviour has been influenced by tribal traditions. They have tribal tradition on one hand and western in one hand. There has three types of leadership styles which is Authotarian, Democratic and Laissez-faire. It can be seen that the leaders are being Authotarian in many large organisation. Authotarian leadership defines boss centered leadership. The manager take decision/come out with plans, determine policy or office procedure without discuss with team members. Eventhough, Asian countries and Arab has utilized high technology, they leaders are still managed with mightiness styles and centralized form in public and private sector. They leaders often apply creative styles of problem solving or breaking organisational norms. They prefer to settled their organisational problem through tribal relation or cultural values. Besides that, Asian countries and Arab major system specifications is open door policies, hierarchal power, obey to rules and law regulations, hesitance to take decision and others.

3.2 Human Resource Practices when recruiting various culture employees

1. Recruitment Practices.

Multicultural organisation can conduct blanket literacy and language testing when recruiting. The organisation can use recruitment method which is advertise in ethnic newspaper, website and magazine. It can pull the ethnic candidates to apply for the particular job. One of the recruitment source of migrant employees identified as advertise in ethic language. The organisation also can appoint few diverse panel employees to enhance recruitment of ethnic candidates. They can help to convince the ethnic applicants that the organisation is friendly multicultural and free discrimination organisation. Moreover, they can come out with adequate programs and policies for attract the migrant employees. (D'Netto & Sonal, 1999)

2. Training and Development Practices

Human Resource department must provide training to enhance employee's knowledge and skills. It is also good opportunity for employees to develop their skills. The multicultural organisation can conduct career management programs, seminars on education and cultural sensitivity to reduce discrimination among the employees. Cultural sensitivity programme such as family day, social club is necessary in multicultural organisation because it can break down barriers and develop communication level among the diverse team.

3. English as corporate language

The organisation can adopt English as common corporate language at the multicultural organisation environment. The management must implement effective communication. As an example : provide English literacy training, training on difference cultural issues, translate summaries of a document/memo into the main workplace language and cross-cultural communication activities/workshop for migrant employees. (Piekkari, et al.,2006) states that, the important of common corporate language are extend competency by overcome misunderstandings, less cost, can save translations time and creating unity at the organisation.

4. Performance Appraisal Practices.

Good diversity practices are vital in reducing discrimination. The manager don't have rights to discriminate against different culture employees. The smaller migrant group can appoint multicultural manager on appraisal panel. (D'Netto & Sonal 1999). Its creates objectives criteria and fair performance appraisal.

5. Remuneration.

The organisation must adapt equitable diversity office practices . One of positif compensation is "union effect" which having strong trade unions to reduce discrimination among the employees. Moreover, The organisation can give very challenging assignment to all employees in order to reduce inequalities in wages for multicultural employees. (D'Netto & Sonal ,1999).

3.3 Employee reward system.


America's employee rewards system is individual based reward system because America is individualistic society. According to (Seymen, 2006) America employees prefer to give the performance results indirect ways.

Asian Countries and Arab

Asian and Arab country's employee reward system is based on team performance because they are collectivism society. Asian Countries and Arab employees prefer to give their performance results direct to employees.

The organisation can practice skill based pay which is , the management can give a demanding task for all the employees and rewards the employees based on critical thinking level, their skills and others . Employee reward system is important tool to be considered by the manager in the organisation. A manager need to have effective diversity management. As an example : manager' promotion and compensation on affirmative action and career development opportunity for minority groups. The manager needs to reward the employees according their own culture's reward invention. The manager must make sure there is no discrimination among minority group, fair treatment to all employees so that it will increase the level of attachment towards the organisation and the employees likely choose to remain with the organisation.

3.4 Besides that, Home Furniture Inc new CEO also should concern on Diversity training as follows : -

The CEO should provide Training and Orientation Program. Training is essential for exchange experiences, problems and impression. (Day, 2007). It is an effective tool for managers to manage cultural diversity training. There are two types of diversity training, such as cultural awareness training and skill building training. First, Cultural Awareness training help the employees understand the other culture's differences and similarities. Second, Skill Building able to raise their own self-awareness, understand the other culture's basic information and cultural standards.

The CEO also must take responsibility to creating a Free Bias Organisation. The CEO can conduct Equal Opportunity Seminar to avoid discrimination, racism, Focus Groups , in house training to examine others cultural belief and approaches and Bias-Reduction Training to help the employees to identify the negative attitude towards the different culture.

Moreover, can conduct Minority Group for soliciting their suggestion on organisation working system, new product development and others related ideas. It is important to make them to involve in important task so that it will increase the feeling of belongings towards the organisation. Finally, can organize more social events such as family gathering, Pot bless lunch. It's a good opportunity to the employees to getting know the different culture ethnic background.

The advantages of policy implementation

The advantages if Home Furniture Inc CEO implement these policies in organisation. The advantages are first, the sales and profit will increase, employees are being productivity and the organisation can achieved desired goals .

The second benefit is the organisation can became friendly environment and free discrimination organisation if Home Furniture organize cultural awareness training and equal opportunity seminar for the multicultural employees. The employees also will have closer working relationship with other culture employee.

Moreover, the company can have effective human resource department by implementing the human resource policies.

Section B

Communication in Organisation

Communication is heart of the organisation. Communication define interchange of suggestion, facts and with another person with the use of words symbols and letter. (Kalla, 2005) Therefore, Effective communication is much more essential because it can create better working relationship, higher employee job satisfaction, higher productivity, helps the management to make decision, solve problems, implement changes, better employee performance and greater cooperation among the employees in order to succeed desired objectives of the organisation. There are three types of communication which is verbal, nonverbal and written communication. It is not easy to create successful intercultural communication there will be a communication problem among intercultural employees. According to ( Schwartz et al.,2008 ) there will be always intercultural problem such as First - problem is due to different assumption about communication different culture have different assumption of communication. Second - problem due to different ways of structuring information. Some culture employee need more data and explanation on particular task and some culture employees are indistinct, not certain. Third - problem due to culture differences in style as an example direct versus indirect language formal versus informal language.

Communication is essential when communication across culture and when communicate there are few things the organisation needs to take into consideration. As an example : should not use jargon and technical language, make sure the message is straight forward and clear and the size of message should short and understandable. Moreover, send emails with highlighting the important word . It can be attention to the receiver. (Schwartz,. 2008) Effective listening skills also important in organisational. As an example be open minded, pay attention when someone is talking and ask question if you have any doubt.

There are few guidance for Home Furniture Inc to became an efficient communicator.


Vertical Communication

Vertical communication divided to two types which are downward and upward communication. According to (Molen et al,. 2010) vertical communication such as new product development and organisation goals will helps the employees to regulate their position in an organisation

1.Downward Flow

Downward flow refers to higher to lower level in organisation. It can also can say as communication between superior and subordinates. Hence, Home Furniture CEO can practice this into the organisation. As an example the CEO can provide feedback on employees work performance, explain employee's job instruction, discuss the desired goals of the organisation and the areas the need to contribute more attention.

2. Upward Flow

Upward flow is higher level in organisation. Upward flow plays an important role in organisation. The examples of upward communication are , Employee suggestion schemes, grievance system, open door policies and employee survey and performance report. The importance of upward flow is to let the manager know about employee's emotions and their suggestion related to the job. Then, the manager can take further action in order to improve the things. According to (Molen et al,. 2010) upward communication helps the employee to participate decision making.

3. Horizontal Communication

Communication within same level of people called Horizontal communication. The example of horizontal communication is between colleagues and manager to manager. The advantages of Horizontal communication is create better co-operation among employees and save time.

4. Oral Communication

In organisation oral communication is important to express the meaning. The example of oral communication is face to face conversation, group discussion and telephone calls. The advantage of oral communication is easy to use and can get response as soon as possible. Oral communication is complex barrier to multicultural communication.

So that, the home furniture CEO can assigned someone who are proficient in other language as interpreter and utilize their service to translate the message. (Spinks and Wells, 1997).

5. Written Communication

Written communication, is transmit the message into letters, memos and others. The example of written communication is memo, letter and e-mails . The advantage of written communication is, there will be a permanent record.

6. Technology (French, 2007)

Home Furniture CEO can implement computer-mediated communication in order to reduce intercultural communication problems. Home Furniture CEO can utilize information technologies such as emails, video conferencing, teleconferencing and electronic meeting to communicate with each other. The use of technology can develop intercultural communication. The advantage of technologies is 24- hours communication across culture and easy accessible.

7. Language Training

Home furniture Inc can send the employee to language training. They can send those employee who are not proficient in English since English is common and corporate language to communicate . (Lauring & Tange 2009). Language is important for effective organisational communication.

Communication strategy

Communication strategy is plays an important role when communicating across cultures.

Therefore, Home Furniture Inc CEO can implement this method to formulate communication strategy.

The purpose of formulate communication strategy.

List down the purpose of communication strategies. As an example : to successfully succeed organisation goals, to communication effectively with stakeholders and other related communication strategy.

What is your current situation

The organisation's communication strengths and weakness. This include PEST and

SWOT analysis.

Organisation goals and communication

Communication strategy should closely reflect your overall organisations plan. Then, we can plan how to deliver the goals through communication. The goals of organisation should contribute by communication objectives.

Example :

Organisation Goals

Communication objective

To equip the staff with sufficient training resources and others.

Make sure the employees understand their own job structure.

Identify stakeholder

The organisation must identify the internal and external stakeholder of the organisation. The example of stakeholder is employees, supplier, Government and media.


What kind of messages you want deliver to your stakeholders. The organisation must always make sure that the stakeholders aware what kind of organisation he/she involve and the message must always related to the organisation goals.

Communication Method

The organisation must determine the methods to deliver message to the stakeholder. It is important to use appropriate channel to convey the message. The example of communication method is verbally, discuss the vision and mission in meeting and use internet to broadcast the message.

Informal Communication

Informal communication refer to contact on informal basis. Informal occurs between small group of people and isolated people as well. Grapevine is always negative but its natural and predestined. Informal communication can affect the reputation and trust of the organisation. Manager is playing main role in controlling informal communication. First, the manager needs to find out the causes if informal communication.

Then, The manager has to think ways to control informal communication in organisation. The method to reduce informal communication is, the manager can have one to one counselling, encourage the employees who are involved in informal communication. The organisation also can have employee survey once a month. It is one of the way for employees to express their complaints to the management.

The management should not have any transparency, must frequently communicate, having close relationship with employees. Moreover, it shown that many isolated employees are involved in informal communication. The management should give more priority to them by assigned them to do job assignment with attractive remuneration. The organisation can have discussion session with employees and assigned some speaker to talk about informal communication in organisation.

While, when we talk about the positive aspects of informal information, informal communication helps to create interpersonal relationship among employees. Informal communication linked with individual and organisation results. Informal communication also enhance organisation's decision making and stimulate revolution. ( Fay,2011 ) Informal communication also help the manager to find out what is going on in the organisation, employee's perceptions on organisation and employee grievance

Home Furniture Inc CEO can practice this method to overcome informal communication problem in organisation.

As a summary, There is few effective tips on organisational communication. Home Furniture CEO can implement this criteria to replicate on their communication strategies.

According to (Marques, 2010), The first criteria is timely - the sender must make sure they receiver receive the message on time without any delays. Second criteria is clear - the message should be clear and precise no matter which communication method have been used. Third criteria is accuracy - the message must be accurate to avoid magnification amongst those who received the message. Forth criteria is creditability. The sender must make sure the message that send should be believed, otherwise the message will be discarded by the receiver.


As an overall conclusion, In Section A, Home Furniture Inc CEO have to take a look at five dimension such as power distance, individualism/collectivism, uncertainty avoidance, masculinity/femininity and long term orientation as given. He also needs to look at the policy needs to consider when operating and employing multicultural employees. It will help to handle the multicultural employees effectively.

In Section B, Home Furniture can implement formal communication and methods on how to control informal communication as given. There are also few steps on, how to formulate effective communication strategies in organisation.

Home Furniture can implement above mentioned policy and advices to enhance the organisation management Moreover, this policy implementation will bring success and fruitful outcome to the Home Furniture.