A multinational corporation is a company engaged in producing and selling goods or services in more than one country. It ordinarily consists of a parent company located in the home country and at least five or six foreign subsidiaries, typically with a high degree of strategic interaction among the units. Some MNCs have upward of 100 foreign subsidiaries scattered around the world. The United Nations estimates that at least 35000 companies around the world can be classified as multinational.
The theory of comparative advantage is the assumption that goods and services can move internationally but factors of production, such as capital, labor, and land, are relatively immobile. Furthermore, the theory deals only with trade in commodities- that is, undifferentiated products; it ignores the roles of uncertainty, economies of scale, transportation costs, and technology in international trade; and it is static rather than dynamic. For all these defects, however, it is a valuable theory, and it still provides a well-reasoned theoretical foundation for free-trade arguments. Classical trade theory implicitly assumes that countries differ enough in terms of resource endowments and economic skills for those differences to be at the center of any analysis of corporate competitiveness. Contrary to the postulates of Smith and Ricardo, the very existence of the multinational enterprise is based on the international mobility of certain factors of production.
Economic globalization, the rapid development of trans-national operations, to speed up the process of international business management. Correct understanding of how the multinational culture of conflict, effective management, for the initial stage in the process of internationalization of Chinese enterprises also have practical significance. This paper intends to multinational corporations and cultural analysis of the causes of conflict, and the corresponding multi-national cultural conflict management.
Body: Multinational corporations and cultural causes of conflict
ï¼ˆ1ï¼‰Values differ in different countries.
Values are the deepest part of the culture, which dominated people's beliefs, attitudes and actions, is to determine the views held by the people and the fundamental starting point for action. Employees of different enterprises have different values, the nature of conflict between employees is a conflict of values. Culture of the Netherlands, a renowned multinational expert in a large number of research based on comparing different cultural values summarized in four aspects, namely, individualism and collectivism, on the rights of the attitude of distance on the degree of uncertainty avoidance and gender differences. The results show that the United States and other Western countries and China, Japan and other Asian countries in these areas there are some differences.
ï¼ˆ2ï¼‰Awareness of managers of cultural bias.
In the multinational enterprise managers understanding of cultural differences, there are often some understanding of bias. For example: the lack of their own culture and understanding of foreign cultures, ignoring the cultural differences between countries and cultural center of viewpoints. Cultural differences is an objective reality, but if corporate managers could understand the cultural differences, and take the appropriate measures to multinational cultural management, cultural conflicts can not only eliminate the negative impact, but also take full advantage of cultural differences, effective implementation of the management.
ï¼ˆ3ï¼‰Based on different types of behavior.
Behavior is culture specific characterization. World-renowned management consultant Richard • Lewis, the World Cultural divided into three, that single event type, multi-line event-based, reactive. These three categories of people to access information in different ways, in-line activities rely mainly on data type, multi-line activities based mainly rely on face to face communication and dialogue, reactive the above two methods. Different cultural background determines different behavior, different patterns of behavior differences in the way of enterprise management, but also created a business in the cultural conflict.
In addition, due to communication barriers caused by different languages, the unique character of different nations, different educational backgrounds and different attitudes will lead to multinational cultural conflict. Only based on a profound understanding of different cultures in order to find a more effective management.
Conclusion: Transnational cultural conflict management
ï¼ˆ1ï¼‰Identification of cultural differences from different dimensions.
Different cultural backgrounds, decided that people have different values, code of conduct. To manage staff with different cultural backgrounds, we must understand their different needs, different values and different behavior patterns, that is, enterprises that exist in two or multi-cultural analysis to identify cultural characteristics, to the management of targeted measures to reduce cultural conflicts and contradictions, and promote cultural integration. Cultural Dimensions of help from all sides to grasp the characteristics of culture, so find a solution to cultural conflicts and contradictions in an effective manner.
ï¼ˆ2ï¼‰The establishment of transnational cultural communication.
Transnational cultural communication refers to two different cultures or groups to express ideas between the transmission of information, sharing feelings, the behavior of the formation process of interaction. Transnational cultural communication in real terms, is mutual respect and understanding. Respect is the meaning of cultural differences between means taking a positive attitude. Establishment of a multi-level, systematic, formal and informal forms of communication, is to ensure smooth information flow, safeguard the basis for effective communication, but also to ensure a successful multinational business management culture, one of the keys, and only through constant communication to generate understanding and trust , the formation of cultural integration.
ï¼ˆ3ï¼‰Strengthening transnational cultural training.
Transnational cultural training to address transnational cultural Conflicts. Many companies favor the current staff of pure technical training, the expense of employees, especially managers of multinational cultural training. Training generally include: knowledge and understanding of other cultures and the parent culture; learn from each other advanced management methods and business philosophy; develop cultural sensitivity, adaptability training; to language, customs, and conflict management, training, etc. . Through a comprehensive system to teach each other's cultural values, ethics, customs, legal systems, enhance staff understanding of each other's culture and cultural sensitivity, encourage their employees to understand and respect each other's cultures, reduce cultural conflicts and improve the culture of conflict resolution capacity. Meanwhile, the multinational cultural training also includes staff training and development of observation and ability to communicate face to face, so that employees in a real business environment to understand and learn each other's culture.
ï¼ˆ4ï¼‰Create a learning organization environment.
In addition to training staff are encouraged independent learning, through learning, in-depth understanding of cultural differences and improve their behavior. Staff received only within the power of independent study students, employees can truly change from the action. At the same time, enterprises also need to build team learning mechanism to encourage employees to each other and exchange ideas, ask each other learning problems. Through team learning mechanism, you can create a strong learning atmosphere, and further encourage the enthusiasm of the staff to learn, but also can focus on the collective wisdom of cultural conflict to resolve problems posed by multinational corporations. For managers, to encourage employees to learn, of course, must take the lead in their own learning, seriously, calling the shots, to ensure good learning.