Managing People and Organisation

Question: Discuss about theManaging People and Organisation. Answer: Introduction: The urge for globalization has prompted many organizations in the present business scenario to adopt expansion in foreign markets as a source for sustainability. The frequent progress of the global economy has facilitated beneficial opportunities alongside a barrage of complexities which create certain barriers for firms operating in international jurisdiction. Therefore organizations have to determine measures for limiting the global skills gap and prepare a formidable platform for the future in order to ensure global employment of staff. The necessity of proficiency in global leadership can be observed from the majority of firms which have adopted global leadership development strategies for training of leaders to cope with the global market (Myers, 2013). The key to survive in a foreign environment is through cultural interaction with the host environment and the leadership programs including leadership succession programs and talent management schedules. However, successful orien tation of leaders in a global leadership development program can be achieved only through the comprehensive understanding of dynamic cross-cultural competencies. The experiences of leaders in global market environment are considered as major attributes to the proliferation of global competencies which serve as the basis for multicultural and cross-cultural competencies. The research study highlights the role of experiences in multicultural and cross-cultural environments in context of international business management (Bush Middlewood, 2013). Cross-cultural Competencies: The competencies which can be derived for the improvisation of organizational performance in a foreign market environment are significant attributes for specific activities of an organization. The interaction of an enterprise with the external clients in foreign markets, supplier and vendor management, budget management and development of strategic planning are some key areas which could be addressed effectively through appropriate realization of cross-cultural competencies. The dynamic cross-cultural competencies include cultural flexibility, tolerance of ambiguity and ethnocentrism (Armstrong Taylor, 2014). These competencies are considered as key moderators of knowledge acquisition in cross-cultural business environments and indicators of the skill and performance of expatriates (Caligiuri Tarique, 2012). Ethnocentrism is considered as an individuals inherent trait for distinguishing other cultures as inferior to that of self. Such type of behavioral preference is characterized by the apprehension of other individuals from the perspective of self-defined standards (Stark, 2015). Ethnocentric individuals do not prefer changing their cultural values for adapting to other cultures. Therefore ethnocentrism has been identified as a profound setback in international business as it limits the scope for intergroup relations among workers, subordinates and clients as well as cross-cultural interpersonal interactions. Cultural flexibility is defined as the intangible ability to utilize distinct activities in host market as replacements of activities preferable in the home market environment. This dynamic competency is largely responsible for success in foreign ventures, cross-cultural adjustment, adapting to foreign environments, cross-cultural flexibility and self-esteem. The effectiveness of global leaders is observed in their cultural flexibility and is enhanced with their prolonged association with foreign market environments (Whyte, 2013). Tolerance of ambiguit y is also counted as a prominent dynamic cross-cultural competency. This competency refers to the capability of managers in addressing unpredictable situations which could hamper the development of organizational growth in a foreign market environment. Individuals with such capabilities are considered to be quickly responsive to environmental stress which can be generated from the external environment such as in political, legal or financial contexts. Experiences with Foreign Cultures: The domain of cross-cultural experiences and their prominence in framing the sustainable strategies for an organization in foreign market environment has been widely referred to in international business management literature. Research from secondary sources from various organizations operating in foreign jurisdictions indicates the acceptance of two prominent theories in realization of cross-cultural experiences. The two theories are contact hypothesis theory and social learning theory and are largely related with the extraction of cross-cultural competencies from experience in a global environment. Social learning theory reflects that individuals can develop and learn in a foreign environment only through involvement with the surroundings (Myers, 2013). On the other hand, the contact hypothesis indicates that personal interaction with a particular cultural group leads to higher degree of positivity towards the attitudes of the individuals from the group (Burke Noumair, 2015). Both the theories lead to the same conclusion when viewed from the perspective of competency acquisition by global business professionals. Hence it has been observed that implementation of contact hypothesis for developing positive attitude towards people of a particular culture and social learning theory for finding, learning and implementing business activities which are aligned with the host culture have been significant for an improvement in cross-cultural competencies such as improvement in tolerance for ambiguity and cultural flexibility as well as reduction in ethnocentrism. The theoretical basis of cross-cultural experiences has been implemented in the context of global business organizations in two categories (Goetsch Davis, 2014). The first one is related to cross-cultural experiences gained outside work and the second refers to work related cross-cultural experiences. Non-work Cross Cultural Experiences: The inherent traits of business organization leaders operating in foreign markets play a major role in determination of cross-cultural experiences. Family diversity, mixed nationalities of parents and foreign experiences initiated by self could account for experiences of an individual with foreign environments. Individuals brought up in multicultural households or those with passion for cultural, professional and personal development are generally exposed to international experiences (Goetsch Davis, 2014). According to the social learning theory and contact hypothesis, the increased involvement with foreign cultures is directly impactful on the acquisition of cross-cultural competencies by an individual. Work Related Cross Cultural Experiences: Leaders are able to acquire various cultural experiences associated with different cultures through organizational activities also. The development of abilities such as listening and observing, management of workforce, translation of complex ideas into action, inclusion of value to difference among cultures, relationship building capability and tolerance for ambiguity is facilitated through certain policies of organizations in international business environments. The work related cross cultural experiences are categorized into low-contact and high-contact experiences (Watson, 2013). Organizations which conduct international business with minimal contact with foreign market environments such as technical support services and consultation are characterized with low-contact cross-cultural experiences (Burke Noumair, 2015). On the other hand, high-contact cross-cultural experiences are guaranteed by significant interaction with external business environments in the form of participation in international meetings, assignments and global teams. The social learning theory suggests that high-contact cross cultural experiences serve as a formidable element for increasing the affiliation of leaders to foreign market environments. Recommendations: The case study of McDonalds presents a viable representation of the issues referred to in the research question. The expansion of McDonalds in foreign markets has been attributed by substantial cultural flexibility and reduced ethnocentrism. For example, the business strategy of McDonalds for expanding in the Indian market was characterized with removal of beef and pork as an ingredient from its products and replacing it with chicken (Watson, 2013). The initiative was favored by the Indian customers as the resident culture did not approve of consumption of beef or pork. This depicts the impact of increased cultural flexibility acquired from interaction with foreign markets which ensures the sustainability of an organization in foreign market environments. Conclusion: The research question of whether interaction with global environments is essential for success in a foreign environment has been reviewed in the report. The report also presented illustrations of the various theoretical aspects pertaining to interaction of business organizations with foreign environments (Myers, 2013). Finally, the report depicts the implementation of cultural flexibility in case of McDonalds which is reflective of the competencies acquired from cross-cultural interaction. References Armstrong, M., Taylor, S. (2014).Armstrong's handbook of human resource management practice. Kogan Page Publishers. Burke, W. W., Noumair, D. A. (2015).Organization development: A process of learning and changing. FT Press. Bush, T., Middlewood, D. (2013).Leading and managing people in education. Sage. Caligiuri, P. Tarique, I. (2012). Dynamic cross-cultural competencies and global leadership effectiveness. Journal of World Business, 47, 612-622. Goetsch, D. L., Davis, S. B. 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