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Globalization comes as a gift as well a curse to the businesses; many issues arise particularly regarding workforce diversity and cross cultural issues between the workforces. Human resource is one the greatest asset for the organization (Chopping, 1996) that is why human resource management is vital for companies to handle the issues effectively. The diverse international business have many problems (Wilkinson and Cheng, 1997) such as the difference of religion, culture, language etc these troubles need to be tackle wisely to make the business successful. The topic is selected to do research on how global and multinational companies accomplished their success with the diverse workforce and cross cultural issues between the organizations. At the same time it has been seen that having a diversified workforce is an advantage for the company (Almurey,2007) as there are positive synergies achieved due to the diverse workforce (Varvel, 2000), therefore a research is required has to done to see the positive and negative aspects of cultural diversity in the global organization, although few of the researches has been done earlier but they are either focused on the positivity or negativity of the diversity, along with that they are not organizations focused.
The research will be based on the three fast food chains McDonald, pizza hut and KFC as there is no other industry that faces cultural issues as much as fast food retail sector (Bedoya, 2003), at times due to diversity they not only launch their whole product chain but also have to hire different kind of workforce. There is rapid globalization in almost all the industries of the world, according to Britannica (2007) "the oldest mover of the culture is Food" therefore they have to face more issues of the cultural diversity as when a fast food retail brand open a branch in any industry they are not only bringing their food but also culture and there is also a big issues of workforce diversity faced by the company (Forsythe, 2004). So it have been seen that there is a drastic change in the fast food industry after the start of globalization (Joslin, 1998) therefore the research is important to take few large global fast food organizations to see how they manage their diverse workforce and is it something good or bad for them.
1.2 Topic for the Dissertation:
The working topic for the dissertations is "How global companies manage human resource diversity and cross cultural issues. A study between the three global brands in UK"
1.3 Aim and Objective of the Research
It is very important for the researcher to see what are the aims and objectives for the dissertation, as aim is what you intend to achieved by undertaking the research where as objective is what the researcher is intended to achieve in the end of the research.
The aim of the study is to see that how three global companies manage cultural diversity within their organization. Whereas, through the research on how the global companies manage human resource diversity and cross cultural issues the researcher want to have discussions on the following point's as well along with the basic aim of the study
To Study diversity in human resource and cross cultural issue of the organization.
To study the problems of cultural diversity and the opportunities existed for the culturally diverse organization.
To look at the policies and strategies of the cultural diversified issues of the global organization.
To see that the intensity of cultural diversity in the UK's economy
To evaluate among the three global brands that who is managing the cultural diversity effectively and how they are using this diversity as the organizations strength.
1.4 Research Questions
Following are the some of the research questions that the researcher is trying to answer through the research on the management of human resource diversity and cross cultural issues in global companies by doing a study between the three global brands in UK.
1. What is the impact of cross cultural diversity in the organization's culture? Is it helpful for the company to have a diversified workforce?
2. How much the Human resource diversity existed in UK's economy?
3. Does the environment created by the global companies are effective enough to handle the human resource diversity? How the major three global companies can handle cultural diversity within their organizations?
1.5 Scope or Rationale of the study
Before doing the research the main concerns for the researcher is the usefulness of the study, so it is very important for the researcher to see the significance of the research on management of human resource diversity and cross cultural issues in global companies by talking and example of three global companies.
The study is significant in providing the guidance for the companies facing human resource diversity issues.
The study provides a good knowledge about the cross cultural issues and their advantages and disadvantages, so it will be helpful for the managers to use their culturally diversified workforce for the benefits of the company.
The dissertation will be focused on the UK economy which is culturally diversified, so the research is also gave good insight about the cultural issues of UK. The research will be useful for the companies who are planning to have business in diversified countries like UK.
The study provides a good knowledge about the cross cultural issues and management of diversified workforce, so its' useful for the students of management and Human resource management to get the comprehensive knowledge about the issues.
1.6 Limitation of the study
Following are the some of the major limitation for the study:
The major limitation is time constraint, as this research is the part of the course work so the time for data collection and analysis is limited.
The study is focused on three companies only and all the 3 companies are of UK food retail sector, so the data collected and analyzed will be used for the food retail outlets only.
The research is geographically located in UK so the data collected cannot do used for the developing countries.
1.7 Theoretical framework
Today world is a global village and organizations exposing different areas of world through international operations (Andam, 2003) but where international business gave many opportunities it also provide hurdle named diversity. The American Heritage Dictionary of the English Language Diversity means different (2000 by Houghton Mifflin Company). DiversityÂ is amalgamation of dissimilarities and similarities among nations or communities (Drechslera, 2006). According to the Auso Multicultural advocates the concept of diversity express in acceptance and esteem among and for each other.
According to Halifax Regional Municipality (2010) respecting the differences and maintaining a particular space while recognizing. The individuality of every person and utilizing each person's different abilities that is inherit in persons due to diverse culture (Hepworth and Rooney and Dewberry, 2009)
People of one nation are different from other which is a problematic situation for any multinational company. Many global corporations gain profits because of these dissimilar characteristics and some flounders due to such divergent minds and behaviors of people this depends upon how the company manage the people (Creech, 2001) coming from different states hence the concept of human resource management arises which can be simply defined as management of employees matter. The concept behind creating a department is to solve employee's problems as in global organizations (Kanooni, 2005) working environment is made up of people coming from different communities therefore a separate department is necessary to maintain just to tackle employees problems and conflicts between them (De Villiers, 2007)
Human resource management is formed to create a favorable environment of working in favor of both company as well as employee (PeÄujlija, 2011) through removing all differences like racial discrimination and encourage understanding and appreciation among employees. The potential of any organizations hides under the capability of managing a various talent that can fetch pioneering ideas, views and image to their work (Hamelink, 2000).
The challenges faced by a global corporation that is workplace multiplicity can be changed into an organizational asset (Prahalad, 2003) if that organization takes advantage of those diverse talents. With the combination of capacities of varied backgrounds, sexual characteristics, ages and standard of living an organization can react more speedily and innovatively to business opportunities (Cox, 1993). Furthermore if organization does not manage diversity and fails to gain advantages from those different abilities then it will create a big risk for an organization specially a company doing international business. According to the Halifaz Regional Municipality (2010) there are four major part of focus of human resource management are education, equality of chance, opposing racism and cultural diversity.
Racism is the perception of people that there are some internal qualities (Pachter, 2010) or characteristics due to belonging to a particular cast or creed and because of this belief peoples divide a nation into various classes and treat them differently in both ways lawfully and generally. This discrimination is favorable for one while hurt other deeply because of superiority of one cast over other create hostility between people (Cikara,Â 2007). Human resource management works on eliminating these differences from workplace and treat every employee equally (Chandrasekar, 2011).
Human resource management is based on providing equal chance of performance to each employee and if any difference is to made then it should be on education or capability not on other factor like gender (Holzer, 2003). Education is for everyone without giving any favor to a particular person education should be available on the basis of working and intellectual abilities, human resource management also see to the provision of any undue advantage just because of same cast or culture each employee should be assess on the bases of abilities (Rubenstein, 2004).
Diversity occur due to culture is the very important area (Seymen, 2006) and task of human resource management particularly an international business come across many cultural issues during operations which not only adverse for the organization to keep pace in operations but also it may result in shutdown of operations therefore cultural discrimination is highly sensitive area and need to deal on time. Every country today even city has its own culture, which is a unique factor of an individual who brought up there, as that culture build ones language, beliefs, customs, tradition, values and religion and a multinational organization needs to tackle all such issues to do business across borders successfully and to gain achievements. human resource management is play a vital role in this regard and helping a global corporation to keep on going with the abilities and intellectual capabilities of persons from different cultural background. Culture is the prior issues of all for a global organization therefore the dissertation focus on cultural diversification problems and its opportunities.
The word culture comes from Latin word colere which means "to cultivate" (Harper, Douglas (2001).Â Online Etymology Dictionary) this term can be described in many forms as the word itself contain so much diversification however culture can be simply explained as an integrated form of a person's believes, thoughts, religion, customs, values and knowledge (Kroeber, A. L. and C. Kluckhohn, 2011) all these factors come across in daily life while performing any kind of task. Culture vary person to person or country to country but there are some basic factors which form culture, those key elements of culture comprise of firstly language which is the basic expression of human being then knowledge one get from educational institutes which build the thoughts, attitude and behaviors afterwards the social circle in which one move all contribute to define and refined ones culture (2001 RCHI)
Culture is a broad term which covers many aspects (Tylor 1958) and different in every part of world even in one country there are many cultures that is why global company face culture as a hurdle in the way of success (2002-2011 Helium). Culture affect both quantitative and qualitative side of a company that can either be used as advantage or can be seen as a demerit however many companies earn from this factor through using culture as a tool as cultural diversification needs to be manage which smart entrepreneurs and managers do to make their operations an triumph, they use the knowledge of individual coming from different cultures to enhance their accomplishments (Thanasoulas, 2001). There are various cultures but with not much dissimilarity therefore a good management integrates the different cultures to grow their operations.
Cultural diversity can be defined as variety of individual coming from different communities, nations and having different traditions (Neumannova, 2007). It's not a piece of cake to manage lot people in one place having varied cultural background, it is almost seem impossible before to merge two individuals who are from totally different society having their own mind sets and behaviors and to agree them on doing work in a single environment (Aiken and Keller, 2007) is difficult however human resource management tackles all those situations and today companies getting their operations wider with the help of amalgamations of culture, educating employees and building trust.
Behind success of every multinational company there is a strong corporate culture that is the unique culture of each organization formed via rules and regulations of management (Sebhatu, 2007) the corporate culture is design as such to facilitate each member of the organization and at this point the role of integrating culture appears. A strong corporate culture is formed after studying the culture of industry as well as country in which the organization is working this not only help the corporation in forming goals but also motivate employees to achieve those goals and made them committed to the organization. Most important areas that are essential to address during designing corporate culture are gender, equality, religion, customs and politics.
Gender is the foremost issue that comes in any organization environment many corporations hire young and attractive female workers(Pande, 2003) as sales agent to earn more profit which create conflicts in organizations as employees should be hired on basis of their capability and intelligences and not on basis of appearance moreover other gender differences is regarding time many organizations provide lenient time schedule to female workers which also affect the male workers(Joshi, 2010) and create job dissatisfaction which ultimately influence the organizational position. In addition to above issues the problem of equality also arises due to gender discrimination as in various places organizations give less workload to female as compared to male in same pay which lessen the commitment of male workers towards organization (Fredman, 2004).
Issues regarding equality does not only fall under gender discrimination but it also comes as a hurdle in management, sometimes bosses gave favors to a certain employee may be because he/she is relative moreover inequality shows in recruitment which create bad impression of organization (Greening, 2000). Therefore a employee should be deal as a person not deal on gender characteristics this will create a peaceful environment and also generate atmosphere of equality which enable the organization to achieve its goal faster and better. Concerns on the subject of religion become a necessity to tackle to overcome cultural diversity issues in organizations people working (Klerks, 2008) in same organization may belong to different culture and they need to practice their cultures while working too as a Muslim needs to offer prayer or a Hindu wants to keep his religious statue on his desk hence organizational culture should allow every employees to practice religion (Blob, 2003). This corporate culture will increase loyalty in employees with organization and they work for organization as they work for their own family which makes organization easier to achieve its aims.
The most encountered problem and job of a multinational organization is to create the positive attitude among the employees (SWARTS, 2008) who come from different cultures as they are scared of corporate environment further with other employees too. This lacking of optimism towards organization can be overcome through communication and through flexible environment (Kimble, 2004) since the commitment and openness of employee is necessary for the organization.
Where diversity is a problem simultaneously it is an opportunity workplace diversification management is certainly a difficult task for any management (Hitt, 2001) but organizing these dissimilarities properly can result in a new thing as when people from different background come together then they innovation takes place similarly if this differences in company are not addressed properly then it may result in closure of business therefore managing diversity have its importance not only in grow earnings but also expanding operations (Heinecken, 2009).
People become diverse in various forms just because of different cultural background (Riemer, 2007) such as thinking style, conduct of ethics, dealing, attitude towards life, work or technology and customs, practices etc all these dissimilarities in one place if tackle appropriately can boost the organizational progress. (Swallow 2009) Particularly in case of global companies which required employees having different abilities that can only be found in persons who are from different society or background hence a corporate culture and human resource strong management is necessary. To bring out the best out of a person it is needed to design rules and regulation accurately further planned each step to handling employees suitably which can only be done when an organization realize the importance of managing diversity at work place (Gordon, 2009).
The three global companies pizza hut, McDonalds and dominos pizza that are selected for this dissertation are successful today because of managing people according to their needs a brief description on three companies are explained here; pizza hut is selling pizzas since 1958 and today it is one of the lading pizza sellers worldwide such a success is achieved because of flexible and appreciative culture. Everyone enjoys doing work at pizza hut as it works on employees training and education further there is no discrimination regarding culture or race each employee has equal opportunity of participation and growth (Pizza Hut UK Ltd). In other words pizza hut is business of people not of food. similarly the pizza seller company dominos pizza also emphasis on employees and customers their priorities are to hire people with best capabilities not on basis of any culture or cast discrimination further they value their employees as they value their customers and their approach of treatment is emphatic which create a friendly and excellent working environment. (Domino's Pizza Group Limited)
McDonald is a perfect example of mixing culture (Tiplady, 2003). McDonald is a chain of fast food that conquer almost every part of world with its products this is done because of giving respect and recognition to every culture where McDonalds works. The mode of management of McDonalds is called as inter-culture mode (Bennett, 2006) that is adopting the style and fashion of host country and marinating the efficiency, independencies and equality of home country this understanding and integration of cultures make McDonald an example for other international fast food chains (HK, 2005).
Reliability measure of any behavioral study is the core component assessment however there are many methodologies come forward to evaluate researches but most essential is the evaluation of reliability and legality. It can be included in straight observations for the assessment of maximum levels of presentation but there are only 48% of the researches, apart from the computerized evaluation, reported reliability assessments on contrast basis. Reliability exposure shows Worst results on evaluating social significance of the effects that is only 28% whereas importance of social goals is found only 4% further on reliability ground the correctness of the procedures is 8%.
1.9.1 Ethical concerns of the data
Ethical concerns in the research arise at the three levels at the time of data collection and data analysis, collection of data through respondents and academic integrity. The researcher is fully aware of the ethical concerned related to the dissertation, it will kept in focused that the veracity of the research enterprise will be followed.
The researcher will develop a relation of trust and honesty with the respondent that the data collected will be used for this research only and the data will not interpret any negative and biased opinions by the respondent. The researcher also understands that the work of other that will be used as the secondary data should be properly referenced.
1.10 Research methodology
Research methodlogy is the most important part of the research, that is important for the researcher to define the research guidelines beofre going into the research process. The whole research process is broken down to many parts and each constitute to form a constructive research framework (Katsicas, Sokratis, 2009)
1.10.2 ReÑ•earch DeÑ•ign
The research design is the most important ingredient for the whole research. It is often called as the 'blue print' for the research (Adèr and Mellenbergh and Hand, 2008). Through research design the researcher is pledging the four important issues of the research, the questions to study the research topic, the important issues concerned to it, which kind of data should be collected for the specific research and important most is how to analyze the result for the same.
1.10.3 Data Collection tools
For the research on global companies manage human resource diversity and cross cultural issues between the companies in UK both the primary and secondary data will be collected.
Secondary Data: It is important for the researcher to collect and analyze the researches done earlier on this subject, as that only help the researcher in highlighting the facts and figure trends in the past but also guide the researcher towards the variables of the research. As define by marketers that Secondary data is information already gathered (McDaniel & Gates, 2003).
Primary Data: For the primary data collection, questionnaires will be used. The sample size of 50 for each of the company, will be used to get the employees view about the cultural diversity exist in their company and how they are effected through it. So the total sample size will be 150 self administrated questionnaires.
1.10.4 Data Analysis
The data will be analyzed by suing statistical tools, as most of the questions are close ended, however few questions are open ended that will be analyzed by the quantitative data analysis tools