Barriers in cross-cuBlture communications in multinational company
Barriers in cross-culture communications in multinational company
Introduction
In times of rapid growth, both in terms of economic development and globalization, number of firms extend their businesses abroad is increasing. A subsequent challenge of this development is the managerial implications of cross-cultural management.
Main body
The “High Six” company. Problem and Research.
The “High Six” company is medium-sized company with about 200 employees, and it is one of the famous companies in office appliance manufacture industry in Europe with home country in Netherlands. “High Six” owns several subsidiary companies in other countries, one of which is in India. This Indian branch is located in Deli which is one of the fastest developing regions in India has about 400 employees. And it was a state-owned factory and had a good reputation in office appliance industry. Back in 1998, when this Holland company bought 51% share of this company, it became a joint venture with this Holland company. And later in 2002, Indian subsidiary was totally bought out by the Holland company and became a subsidiary of the latter.
At the beginning of expanding into Asian market the forecast was extremely high. But last researches showed that our expectations are not justified. Following the logic, the company investigated the reasons low performance. Being seriously concerned decrease in profits they employed specialists in cross cultural communication.
Cross cultural management mainly focuses on the behavior of people from different culture working together as a group or an organization. Most of cross-cultural management study aims at dealing with the issue of organizational behavior, such as leadership style, motivational approaches, strategy, organizational structure.
Specially hired people interviewed managers ( Research and Development manager, Technical and Production manager, and Quality Control manager, who are all Holland) in Holland parent company and two managers
Introduction
In times of rapid growth, both in terms of economic development and globalization, number of firms extend their businesses abroad is increasing. A subsequent challenge of this development is the managerial implications of cross-cultural management.
Main body
The “High Six” company. Problem and Research.
The “High Six” company is medium-sized company with about 200 employees, and it is one of the famous companies in office appliance manufacture industry in Europe with home country in Netherlands. “High Six” owns several subsidiary companies in other countries, one of which is in India. This Indian branch is located in Deli which is one of the fastest developing regions in India has about 400 employees. And it was a state-owned factory and had a good reputation in office appliance industry. Back in 1998, when this Holland company bought 51% share of this company, it became a joint venture with this Holland company. And later in 2002, Indian subsidiary was totally bought out by the Holland company and became a subsidiary of the latter.
At the beginning of expanding into Asian market the forecast was extremely high. But last researches showed that our expectations are not justified. Following the logic, the company investigated the reasons low performance. Being seriously concerned decrease in profits they employed specialists in cross cultural communication.
Cross cultural management mainly focuses on the behavior of people from different culture working together as a group or an organization. Most of cross-cultural management study aims at dealing with the issue of organizational behavior, such as leadership style, motivational approaches, strategy, organizational structure.
Specially hired people interviewed managers ( Research and Development manager, Technical and Production manager, and Quality Control manager, who are all Holland) in Holland parent company and two managers