Cross-cultural management at CREATORS
Many Seems decorousness during the turn of the millennium have took their firms Into the global market from the very inception or following two to three years of their formation. Very rapidly, they have expanded to the foreign markets and encountered many challenges In the new markets. We call these firms as High-tech born global (HTTP) Seems. The HTTP differs in many aspects from their peers. They offer similar kind of products and services in all the market they serve. The target population for their services has very often same social strata and do possess the same kind of attributes.
However, there are still cultural differences in each of the market. The THUG does not have the experience of dealing with cultural issues as they have no or little experience before they started their Innovative ventures. Despite their innovative products and technological uniqueness, the HTTP faces enormous challenges to manage their ventures in abroad. In our knowledge, no study has ever taken to study how the HTTP Seems manage their cultural diversity In the Head Office and their subsidiaries in abroad. The current study is exploring how the HTTP Seems manage their cultural diversity in their head office as well as in the subsidiaries.
Our discussion highlights whether these firms should transplant the WHQL cultures to the subsidiaries or subsidiaries should have their own culture or the HTTP Seems should develop corporate culture comprising the best elements from each culture the firm have presence in. The pre-paradigmatic stage of research on this topic was behind our choice of case study method for this study. The diversity of the workforce In Quebec is a reflection of today’s society that now has over a hundred cultural communities. During the period 2007-2011, the volume of admissions of immigrants totaled 245,606. More than two thirds (67. ) of Immigrants are admitted In the economic class immigration, especially as skilled workers (60. 8%) or as business people (4. 6%). Forty percent are native to North Africa (21. 4%) and South America (9. 7%), and Western and Northern Europe (9. 3%)1. Today, companies have a wide variety among employees, not Just ethnicity, but also age, sexual orientation, etc. Although diverse workforce provided a range of skills, especially in the context of globalization, it is a challenge for managers. A good management of diversity shows that the company has reached a certain maturity and it sees a competitive advantage.
Managing diversity means “plan and implement systems and methods of personnel management to maximize the potential benefits diversity are race, gender, culture, nationality, disability, age and religion. “Culture can be defined as “the set of distinctive spiritual, material, intellectual and emotional features that characterize a society, a social group or individual. Subject to nature, it encompasses environment, arts and literature, lifestyles, fundamental rights of the human being, value systems, traditions, beliefs and science”(Sultana et al. 013). In this work, diversity is rather seen in context of cultural diversity that affects the Meany’s identity. The aim of this work is to apply the theoretical concepts in management of diversity in a real world company, CREATORS.
First, a little theory related to diversity will be covered, followed by the methodology used to collect the information necessary for our analysis. A diagnosis will be made and these results followed by a list of general and specific recommendations to help the target company in the management of diversity.
CREATORS is a technology company and AD digital solutions offering its employees a unique working environment, led by a young and dynamic team. Founded in 2002 in Lvisa (ICQ), it now has over 326 employees in three continents (North America, Europe and Asia) and eight offices. In 2012, Just ten years after its creation, the company inaugurated the ENSURE Industrial Research Chair on-CREATORS AD scanning in partnership with the Lava University. CREATORS works tirelessly to remain a leader and a pioneer in portable AD measurement technologies.
To date, it has more than 25 patents in several countries other than Canada, such as France, Germany, Japan, JUICE, etc. Their portfolio is comprised of different products (AD scanners, coordinate measuring machines, software) and related services (training, inspection, etc. 3. The company has a strategy to revivalist the brand positioning in all target markets in meteorology (industrial measurement), non-destructive testing, health care and engineering. To achieve this, the strategy aims to better communicate the value of the offer in these markets and increase company recognition on the international scene.
To continue to grow internationally CREATORS must be able to manage cultural diversity both internally and with customers from different countries. CROSS-CULTURAL MANAGEMENT AND BORN GLOBAL SEEMS Head Quarter culture to the subsidiaries in abroad (l meant whether WHQL culture is DOD to transpose to the subsidiaries?? ) Subsidiary culture (Or, Subsidiary needs to have its own organizational culture) Corporate Culture (or, HTTP SEEM needs common corporate culture with some adaptation, we need to focus on this aspect as our concluding remarks…….. Literature review on cross-cultural diversity Corporate culture refers to modes of managers and employees of a particular company within their company and also visa–visa third parties. When a company established in another country where the culture is very different from the country of origin, diversity management must be done on a larger scale. Depending on the model of Hefted (1980), national cultures can be summarized according to five dimensions: individualism / collectivism, power distance, uncertainty control and masculinity / femininity and orientation short / long term.
A Quebec company that wants to implement also needs to know, analyze and evaluate the national culture of and minimize possible difficulties. Here is a definition of these dimensions in order to understand the definition of society that they can obtain: Individualism versus collectivism Individualism is defined as a society where individuals bear little and everyone is responsible for his fate. Collectivism, meanwhile, is a company with tight links between individuals. Each favor the well-being of the group before that of the individual.
Power Distance This dimension expresses the degree to which to which the less powerful members of society accept that power is distributed unequally. This has an impact on the acceptance of a hierarchy in which each occupies a specific position. A company with a low power distance results therefore require an equal distribution of power and justification for each inequality. Uncertainty Avoidance Control uncertainty expresses the level of ambiguity and uncertainty that members f society can achieve before they feel uncomfortable.
Control or letting go is a constant choice that individuals must take and the decision is defined by this parameter.
Masculinity versus femininity
Masculinity is: achievement, heroism, fighting and material rewards for success. In short, the company is more competitive.
Femininity is: cooperation, modesty, caring for others and quality of life. The company is more consensus-oriented.
Long-term vs. Short-term orientation The short-term orientation can be interpreted by the value of traditions, low tendency to save for the future and a focus to the fast results.
In companies with a long-term orientation, people have tendencies to invest and save; they are more likely to value perseverance and future results. Here is also a more specific strategy to implement by the company. Hygiene (2008) proposes a decision model in three distinct stages:
Identify differences between the corporate culture of the parent company and the culture of the host country;
Choosing a strategy for managing cultural differences between integration, acculturation and laissez-fairer;
Implementation of selected resources and adopting appropriate means strategy.
METHODOLOGY: SINGLE CASE STUDY
Choice of the company for this study In order to make a comprehensive analysis of the reality of Quebec companies in the management of cultural diversity, it was essential to choose an organization that not only developed its activities in foreign countries, but was also growing. The selection criteria were established on three main points: the scope of business development abroad, sustained growth activities, and the importance that managers are the organization of cultural diversity.
The first criterion allows a sufficient sample to draw diversity of culture within their teams. Having offices in different continents, so it’s easier to ask a proper diagnosis, and Just develop some general observations to the management habits that organization. The second criterion, making growth a key element in the selection of organizational choices, it is clear that the company has used some effective methodologies to violate difficulties of expansion on soils ultramarine.
The successful export of Quebec knowledge abroad results not only from the agility with which its managers have adapted their methods, but it also demonstrates that its management team has enough experience of Ethan-cultural experiences for rigorous conclusions be drawn during the study. Finally, the last criterion chosen is the interest of the organization’s leaders to the Ethan-cultural management in the staff greatly facilitates exchanges with them. By ensuring that this be considered by company executives, it is clear that some appropriate internal procedures have been implemented.
Thus, it will be easy to make appropriate recommendations, which will also be appreciated by managers. Following the analysis of these criteria, CREATORS seemed like the best choice since this young Quebec organization operates in several continents of the globe is experiencing significant growth since its inception and the human resources director, Olivier Vacant, noted that the active management of cultural diversity in their organization is a priority.
Presentation of the resource person for this case study As mentioned previously, the person contributor to our study is the human resources manager of the main office in Lvisa, Olivier Vacant. The young manager is the organization for 8 years now; he has a degree in Industrial Relations from Lava University and is a member of the Order of Certified Human Resources Professional (CHIRP). It is the main reference for the human resources office of Quebec, but also he orchestra difficult situations that arise in foreign offices together. Very often, Mr.. Vacant has to move in offices in the United States, France, China, Japan and Germany.
Read about the basic tenets listed for the strength management
In light of this information, we felt that Mr.. Vacant is the person well informed and most aware of the realities of management both in head office and subsidiaries in foreign markets expanding in 9 countries of three continents. Choice of the method used to gather information In order to have a concise picture of the current situation in terms of CREATORS managing cultural diversity, two methods of collecting relevant information were regarded, first an extensive literature review to develop our understanding and conceptual framework and then to make an interview observation with a resource peers in order to validate our understanding.
CREATORS has shown great interest in actively participating in the study and assisted us to provide various information regarding their human resource management challenges and strategies in both home office as well as subsidiaries in abroad. We have used a questionnaire interview. The division of the questionnaire into 4 distinct parts: the development environment of the company, the current integration of cultural diversity within the organization, the benefits of this diversity, and the challenges it entails, has facilitated fluency participant.
The first part has to be familiar with the company, instructing Creator’s core values , mission and the composition of their teams. Better equipped to take ownership of their reality, so it is easier to Judge internal methods used to manage and promote Ethan management. The second part is the actual integration of cultural diversity in the organization, is to clearly identify the internal policies in place to integrate the employees of other cultures , as well as accommodations selected by CREATORS for facilitate management.
Meanwhile, the third section on the benefits of cultural diversity within the organization is a concrete analysis of the benefits of this practice. Finally, the last part asks the organization to make a retrospect on the past, present and future that has an active management of multiple cultures challenges. Highlights of the interview In the first part of the interview, which can be put into context the measures being taken by CREATORS to facilitate the integration of employees abroad, Mr.. Vacant says that there is not really culture of the organization itself.
For a new employee who ivies in a country other than Canada, away from the headquarters, the same heart of the organization, it may be difficult to clearly identify the organization and be in full rally. When asked to Mr.. Vacant develop the differences in personnel management in Quebec and abroad, gentleman mentioned that they used the same basic principles of human resources, while incorporating some specific cultural elements specific to each country. Here, it is clear that the organization is not clear as to make accommodations and respect towards cultures employee rules.
Quebec and trends at specific events, some reaction steps are taken is exported. Consequently, yarn needle, policies regarding the management of these differences are set up and can be applied elsewhere in similar conditions. In addition, later in the interview, Mr.. Vacant confirmed that there was no difference in tasks required to Quebec employees overseas as employees. Again, it is possible to assert that tax Quabeck standards abroad and therefore, this may have long- term, is a deterrent or as a psychological barrier between the organization and its new foreign members.
A little later in the interview, Mr. Vacant says that CREATORS has no external sources which refer for Ethan cultural management. Therefore, it is the sole Judge problematic situations that causes and can’t draw, apart from the web, the experiences of others . Although it can also share their concerns with other members of management and thus have other opinions, there will always be subjective in the management of these internal problems effect. In the second part of the interview, he was asked Mr.. Vacant develop the positive side, the benefits of such an Ethan-cultural management within the organization.
It has exposed the idea that internal cultural diversity has allowed them to more easily export their knowledge and become more efficient at the lobar level. The success of CREATORS recent years is much due to the support of in their country. Having local people as employees, it was possible to export effectively Quabeck expertise. Overall, in the last part of the interview, Mr.. Vacant has developed on the challenges quantifications cultural difference among members of the organization. In fact, he raised that management is often minimized and differences explain most failures or challenges prepared to CREATORS.
For example, he told the Quebec compensation policies were not easy to export to Japan, because they did not fit with their manners. This is one of the conflicts identified by Mr.. Vacant, he had to make a long way between Quebec internal policies and expectations of Japanese about their compensation. Manners have a direct influence on the behavior of employees and Mr.. Vacant says it is important to understand these behaviors and motivations. Context of the organization Based on information gathered from Mr.. Vacant, it was possible to see that CREATORS has experienced remarkable growth since its inception in 2002 in Lvisa.
After only 10 years, the company now operates in six countries on different monotints. In April 2012, it redefined its image and creating a new identity of its own and sets an aggressive mission was to be “a leader and a pioneer in portable AD measurement technologies”4. It also offers employees some values to grow, to adhere to the ideology of the organization. There are 3 main or innovation, passion and determination. By analyzing these factors, it is clear that with its ambitious mission, active management of cultural diversity is a key point to achieve their intrinsic purpose.
To become and remain above the leader of these technologies, CREATORS as the choice to integrate overseas employees to their internal culture and ensure adherence to these values and mission. With the results reported in the proportions of employees across age groups, sex and visible minorities, it was possible to deduce that there is a high proportion of men in the organization. The majority of their employees are also under the age of 34 years, which is consistent with the image of the CREATORS visionary and spirited ambition.
Although the company operates in many countries around the world, only 2% of their employees are considered members of visible minorities. However, this is directly attributable to the fact that the head office is located in Lvisa, a suburb of Quebec City.
DIAGNOSIS OF THE CURRENT SITUATION IN CREATORS
Following analysis of the responses received from Olivier Vacant, Human Resources Director at CREATORS, it is interesting to see that the company has addressed the issue of diversity and gradually as it grows.
This intuitive approach, which did not require the creation of any committee or writing charter, seems to have worked because the presence of CREATORS in six different countries does not seem to have caused any major trouble related to diversity. Extensive elaboration of cultural context in the CREATORS international firm shows the awareness and culturally competency of the Human resource executive Mr..
Olivier Vacant on cross-cultural process of learning by doing and helped to mitigate many the risks of international business expansion and hiring staff in different cultural settings. The current state of art of the cultural diversity context in CREATORS can be summarized by the following table of the strengths and weaknesses of the company.
Corporate culture that promotes diversity at different hierarchical levels;
No formal logic of diversity management is in place.
Involvement of senior management in the fair treatment of employees based on their specific culture;
No assessment / training done in the past on their performance in managing diversity;
Considerable efforts put in place to understand the different sub-cultures in the company and adapting with them;
Low percentage of visible minorities (2%) and low proportion of women (25%);
Integration strategy adopted, which takes into account the diversity, to facilitate the arrival of new staff;
Table 1 : Cross-cultural context of CREATORS.
To better understand the potential problems that the company could face in the future, it is relevant to compare the main corporate cultures present at CREATORS. To perform this task, it is appropriate to use the 5 criteria of Hefted as they are the most proven theory on the subject.
By observing Figure 1 : Comparison of Hypotheses parameters, it is possible to highlight some cultural differences to better understand how to behave according to the culture that the company faces. Note that the countries represented in the graph are those where the company has employees permanently established.
Figure : Comparator des pramtress doffsDee First, it is quite easy to see that the Western countries (France and Germany) have more similar profiles in Canada and Asian countries (China, Japan and India) and therefore less conducive to conflict. The latter statement is supported mainly on the differences with respect to the long- term, the strength of individualism and masculinity parameter. Second, Japan and China are definitely countries where differences face in Canada are stronger. The high values of masculinity, risk aversion and long – term orientation to consider when interacting with employees located in Japan.
Moreover, it is likely that risk aversion that explains the difference in pay with Japanese sellers and Canadian vendors as told in one of the responses to the questionnaire face. As discussions went well in trade agreements, it is clear that employees should anticipate CREATORS long and slow negotiations even before they met their future partners. This once again confirms their ability to prepare well for the management of diversity. About the Olivier Vacant confirmed that the corporate of “differences” “which leads to missteps”6.
It is also clear that diversity is seen as an opportunity to reinforce the company rather than a hurdle. What is the attitude to take to make a business grow sustainable in the context of globalization? The constant expansion of the company to believe that they will increase alliances and interactions with the different countries where it is currently located and beyond. So we look after the local culture of each of the countries where the CREATORS is implanted currently in order to bring out the important points to understand the potential sources of conflict.
This will enhance existing relationships and facilitate the intensification of these in the future. It was decided to give several pages of these descriptions are given, they will definitely understand the foreign partners and customer focused culture. Rapid Expansion of CREATOR and interactions with divers’ cultures The comparison has been made made according to Hefted parameters, descriptions of the various nations will be made using the same criteria.
1 – CANADA Canadian culture is marked by the value given to egalitarianism among individuals.
The hierarchy in Canadian organizations is established for practical purposes. Superiors are always available and their success depends on the efforts of each individual constituent their team. Honest and direct communication is valued. Canada has an individualistic culture. In the business world, employees must be independent and show initiative to demonstrate their competence and value. Canada can be characterized as a moderately masculine society. In fact, Canadians are ambitious but mostly tend to balance work and the pursuit of personal goals.
Canadian aims still high standards of performance in all their professional activities. Canadian respond well to uncertainty, they are open to new ideas and new experiences. The expression of these ideas is obviously encouraged. Canadian companies measure the performance of management principles in the short-term, which encourages people to seek quick results in the discharge of their duties.
2 – FRANCE Power distance is high, vertical hierarchical structure is essential in France. Senior often enjoy privileges and can be accessed without any problems.
French society encourages individuals and personal opinions, taking care of themselves (and their close family) independently rather than worrying about the community around them. The favored communication is direct and everyone is allowed / encouraged to speak. France is relatively feminine and attaches importance to the quality of his life working to be able to live as they wish. The competition between individuals is not really encouraged. Management should be made to provide support and dialogue since certainty is usually sought.
This can be done via theoretical concepts and academic work to clarify the details, the context and background of an issue. Rules, planning and security are sought to reduce nervousness. France is facing a short- term society. Which therefore means a respect for the traditions, standards, guidelines and quick results.
3 – GERMANY Highly decentralized and supported by the middle class, it is not surprising to classify planet. Direct and participatory communication is constantly encouraged while disapproving of non- expertise based on hierarchical control.
The German company is extremely individualistic. Loyalty is based on the individual preferences of each person and their sense of duty and responsibility. Communication is so honest and straight forward, even though it may hurt. Germany is considered a masculine society where performance is highly valued at the age of 10-12 years. All this thus resulting n a people living to do its Job and is defined by his many personal achievements . Germany is among the countries that avoid at all cost uncertainty. Rigor and details are crucial when making decisions is necessary .
It is not surprising that the German rely heavily on experts to make decisions rather than their instinct for example. The Germans have a short – term orientation, which is promoting the rapid results.
4 – CHINA China has a relationship with the hierarchical power that makes him accept inequality, formal authority and sanctions. The Chinese are generally optimistic bout the capacities and initiatives of others, but it is not advisable to expose aspirations beyond its current status. China is highly collectivist, so people act in the interest of the group and sometimes even against their own interest.
Personal relationships are also valued more than the fulfillment of tasks. Chinese adopt male behavior. Continued success is made in an extreme way. It is not uncommon to find Chinese who abandoned their family and leisure in order to prioritize work. China has a relatively low result in risk aversion. The Chinese are comfortable with ambiguity, have good adaptability and entrepreneurship. China is highly oriented towards the long – term.
5 – JAPAN Japan is a hierarchical society moderately despite popular belief .
The slow pace of decision making is explained by the need to obtain the approval of all levels by an unbalanced hierarchical power. This shows the inability to make decisions alone without consulting other levels of hierarchy. The Japanese have several characteristics of a collectivist society as priority group harmony rather than the expression of individuals. The Japanese are famous for their loyalty to the company that employs them. Japan is one of the most male societies on the planet. Combining this with their collectivism, aggressive and competitive behaviors are not common.
The competitions takes place between different groups and strongly motivate employees to work long hours. Japan is a country that seeks to avoid uncertainty at all costs. Managers require a large amount of information before making a decision. The Japanese company also has an orientation exceptionally oriented long – term. This is what Justifies the high rate of reinvestment of business R ; D. Corporate Sustainability is a priority for the Japanese in order to serve future generations .
6 – INDIA India appreciates and accepts no problem hierarchical power .
Indian like that organizations and society are divided vertically. Employees expect to receive clear guidance about their work . Communication is directive and usually downward . India has collectivist traits that make that individual actions are always influenced by family, neighbors, group work, etc.. Indians belong to a male society but has an extremely varied and intense spirituality that allows Indians to advocate certain tendency to avoid uncertainty. Thus, India is traditionally a patient and tolerant of unexpected that makes countries so that the initiative will be rare.
Indians belong to one oriented towards long – term culture. Time there is not a linear concept, much less than in Western society. Respect for punctuality so there is not very important. It is important to understand that the company was only ten years old and still a limited number of employees. So there are lots of concepts that form the basis of diversity and its management should be further developed by the company. Some traps have been avoided so far; will present a more and more common with the future growth of the company.
The effectiveness of the company could probably be increased depending on the management of diversity. Thus, the next section presents a number of recommendations to improve the performance of the company’s diversity.
CROSS-CULTURAL MANAGEMENT IN THE HTTP SEEMS
Based on the responses to the following interview with Mr. Olivier Vacant, expansion internationally has not caused significant problems in terms of cultural diversity. By cons, several aspects have to tweak in order to improve organizational tools in place and maximize the benefits that cultural diversity can bring.
Jocosely Brutal Employ-
Quabeck supports these claims: “A company provides a strategic and competitive if it incorporates the principles of diversity management advantage. ” Taken from the same book of Employ-Quabeck, here is the list of several important advantages that will allow the company to stand out against the competition: ;
Improve service delivery to customers, which is also increasingly diverse;
Develop new products and develop new markets;
Making tracks new solutions by mixed teams;
Increase collaboration and partnerships with a win-win approach;
Manage change ore effectively.