MANAGING AND LEADING PEOPLE IN

INTERNATIONAL ORGANISATION BMG881 (33747)

VAIBHAVI VIKAS DONGA

STUDENT ID 10223617
Table of Contents

Introduction.................................................................................................................................................................... 3
International Recruitment Approaches......................................................................................................................3
Ethnocentric approach.............................................................................................................................................4
Polycentric approach................................................................................................................................................5
Geocentric approach................................................................................................................................................6
Literature Review..........................................................................................................................................................7
Developing a team in an international level..........................................................................................................7
Diversity & Inclusive Management.....................................................................................................................7
Employee Welfare................................................................................................................................................8
Employee Benefits (Financial and Non-Financial)...........................................................................................9
Work-life balance..................................................................................................................................................9
Analysing and evaluation...........................................................................................................................................10
Tuckman’s theory.......................................................................................................................................................11
Forming.................................................................................................................................................................... 11
Storming................................................................................................................................................................... 12
Norming................................................................................................................................................................... 12
Performing...............................................................................................................................................................12
Adjourning................................................................................................................................................................13
Conclusion................................................................................................................................................................... 13
Reference.................................................................................................................................................................... 14
Introduction

Due to the diversity of cultures, languages, and backgrounds, managing and leading people in an

international organisation can be a complex and challenging task. "Managers in multinational

companies must be capable of adapting their leadership styles to different cultures and be aware

of the requirements of their employees in different countries," write Bartlett and Ghoshal (1991).

(p. 130). As a result, good communication and cross-cultural understanding are critical skills for

international organisation leaders. According to research, numerous methodologies exist

for managing and leading people in international organisations. According to Hofstede's (1980)

cultural dimensions theory, leaders should be aware of cultural differences among their employees

and adjust their management style accordingly. Furthermore, Trompenaars and Hampden-Turner

(1998) contend that managers should understand their organization's cultural diversity and use it

as an origin of innovation and creativity. Furthermore, effective communication is essential for

effective leadership in international organisations (Gudykunst & Kim, 2002). Leaders should use

active listening, clarify expectations, and provide feedback, according to Gudykunst and Kim

(2002), to ensure that their messages are understood across cultural boundaries. Furthermore,

developing a strong organisational culture that values diversity and inclusion can assist leaders in

international organisations in managing and leading people (Cox & Blake, 1991). According to Cox

and Blake (1991), leaders should foster a culture that values diversity and encourages employees

to share their unique perspectives. Finally, managing and leading people in an international

organisation necessitates leaders having cross-cultural communication skills, adapting their

leadership style to different cultures, valuing diversity and inclusion, and developing a strong

organisational culture. Leaders can effectively manage and lead a diverse workforce while also

achieving success in their international operations by doing so.

International Recruitment Approaches

International HR managers must determine the international competitiveness of prospective

candidates during the recruiting process while recruiting for international operations. International
recruitment involves EPG methods. EPG stands for the Ethnocentric, Polycentric, and Geocentric

approaches of an employee.

Ethnocentric approach

Ethnocentric staffing entails hiring management from the identical country as the subsidiary.

Organizations using the ethnocentric approach uphold a native country orientation but also apply

the same promotional and commercial approaches utilized in the home market to overseas

markets. The organization may view international markets as connections to the domestic market

because decision-making and procedures are centralized. The organization may fail to fully cope

with regional cultural, social, and economic conditions, relying instead on standardized products,

pricing, promotion, and distribution channels. Apple is an example of a company that employs the

ethnocentric approach by maintaining a consistent brand image, design process, and pricing

across its overseas markets (Workable, 2018).

The ethnocentric strategy emphasizes Natives of a nation where the business operates in critical

posts including both its headquarters and abroad. As an example, the American original firm

employs Native Americans in designation across the USA and Mexico (Zeeman, 2019).
Polycentric approach

A polycentric approach refers to the strategy of restricting hiring to citizens of the home nation

(locals).

Organizations use the polycentric approach to tailor their business and promotional strategies the

based-on culture, interpersonal, and market environment of each foreign market. Decisions and

operations are decentralized, and local managers have significant autonomy. The

organization tailors its products, pricing, promotion, and marketing channels to each local market's

preferences and needs. McDonald's is an example of a company that uses the polycentric

approach, as it offers localized food menus and advertising in various countries to adapt to local

preferences and tastes.

The polycentric approach employs natives of the host nation to handle the process in their native

country and natives of the home nation to manage the resources in the parent firm. An example,

the Australian host company employe Indian natives to take responsibility for the Indian subsidiary.

The parent firm is led by Australians (Zeeman, 2019).

Geocentric approach

A geocentric approach is a method of recruiting the most capable applicants for offered

designation, despite of ethnic group.

Organizations using the geocentric approach take a global outlook and strive for a balance of local

adaptation and internationalization. The organization seeks to identify and capitalize on market

similarities and differences and may employ a mix of standardized and localized advertising and

corporate strategies. With a concentration on international coordination and integration, decision-

making and procedures may be a combination of centralization and decentralization. Coca-Cola is

one company that uses the geocentric approach, combining global branding and marketing with

localized products and promotions to adapt to a variety of consumer preferences in various

markets.

The geocentric approach employs the latest professional management teams for a business

regardless of its country of origin. As an example, the UK host company hires natives from a range

of countries at its head office and its US firm (Zeeman, 2019).

Literature Review

Organisations are primarily comprised for a variety of resources that are used in the right manner

of production to provide greater resources and income for an organization (World Health

Organisation, 2018). This also comprises diverse skills, equipment, and buildings, as well as

personnel competencies, which include numerous standards, procedures, and cultural and

organizational values. In today's economy, there is increased complexity as well as uncertainty,

which has impacted the organization's long-term success. There are some various trends which

helps the organisation to justify their presences and performance in an international level (Caligiuri

et al., 2020) Organisational culture also plays an important function in the worldwide marketplace

because it defines numerous areas in an organisation as well as organizes other people, which

might be any investors, employees, customers, or other managing directors. Organisational

culture additionally concentrates on the larger portion of organizational values, which contains

various similar feelings and thoughts that are shared among various people that recognise

different methods to get their task done in one or more ways (Koohang, et. al, 2017).

Developing a team in an international level.

Extending the business internationally means reaching out to newer clients or customers who can

assist enhance earnings. Despite the uncertainty, there are several challenges that could lead this

organisation to conduct business on a larger scale that should be considered before embarking on

a new international venture (Chamola et al., 2017). Here are some ideas for overcoming the

problems that foreign businesses face:

Diversity & Inclusive Management

Organizations are now heavily reliant on ensuring that existing human resources are diverse in

culture, age, group, ethnicity, and gender so that existing pools of talent are able to bring in

different concepts to establish an innovation-driven workplace environment (Parry and Tyson,

2013); however, this implies that management leadership plays an important role in an

organization. Nestle, for example, managers specifically focus on developing its multicultural

management policy by adopting programmes such as the Gender Balance Acceleration Plan. The
scheme assisted Nestle in providing equal parental support advantages to similar-sex and

different-sex couples. Parenting with same-sex and LGBT group which advocates the employees

to be eligible civil rights and workplace protection. And gaining recognition from non- profit

organisations (Nestle, 2022). Asda's approach to variety and addition is two-fold, with activities

focusing both on the customer and the colleague. Throughout its public procurement and training

processes, Asda also markets its values to its distribution chain and consultants. From the store

level up, the superstore has held in a variety of empower activities for its staff members to

champion equality and diversity. From straight mates' initiatives with employee’s champions trying

rainbow lanyards to making an investment in specifically designed trolleys for children with

disabilities, to supporting mental health charitable organizations and advancing a 'quiet shopping

hour' with Autism NI.

As a result, 68% of employees disclosed their sexual orientation, and Northern Ireland's sales

climbed by 4.5%, making it one of the most adept regions in the UK. A gift of £500 was provided to

Action Mental Health UK's exclusive retailer Stonewall's Top Employers. Top 100 LGBT-friendly

employers (BEAM, 2017).

Employee Welfare

A positive work culture allows an organisation to prioritise employee well-being. Managers play a

vital role in maintaining that the overall workplace culture is positive, which benefits the

organisation, and managers are involved in ensuring that the employees' personal and

professional progress goes efficiently (Storey and Wright, 2019). The best example is Google, who

expanded their notion with Google's Employee Development Plan. The Google vice president

advises other firms to consider employee welfare. No employee wants to work for an employer

that looks down on them or does not recognise their contribution. Employees must believe that

what they've learned has helped them advance in their careers. A great employee development

plan is an effective means of creating employee loyalty in the business. Empowering employees is

the key to an organization's growth and success. With an employee development plan, making

growth in a company is practically impossible. First, they enable employees the right to learn and
wishlist their tasks in order to increase productivity through the plan, and they also allow

employees to assist their coworkers in order to provide an equal quantity for evaluating outcome in

an organisation. There is no doubt that Google personnel are extremely knowledgable about the

entire planet. They urge their employees to share their knowledge with others in the sector. The

employee's monologue is "Your own employee is perhaps the most experienced instructor

available to you" (Butler and Rose, 2011).

Employee Benefits (Financial and Non-Financial)

Employee benefits helps the employee to develop loyalty and empower workforce in an

organisation it is important for a manger to ensure that apart from reimbursement and incentives

employees enjoys certain benefits like medical leaves, health insurance, gift vouchers and

holidays sponsorship it is state that 20% of employee perform better when provided additional

benefits. For instances Apple employees get an annual 25% discount when they purchased iPad,

Mac, or iPhone. Every 3 years an Apple employee gets $250 off on iPad and $500 off on Mac. And

50% off on apple software. Company also provides additional benefits for family and friends on

specific product (Soregaroli, 2022).

Work-life balance

For decades, work-life balance has proven to be a hotly debated topic. It's not surprising, given the

variety of obstacles that busy professionals encounter. Managers that are devoted to establishing

work-life balance conditions for their staff can save money, have fewer incidences of absences,

and enjoy a more positive work atmosphere (Sanfilippo, 2023). For example, Netflix has

eliminated the office and allows employees to commute, giving them more time and flexibility. They

have also reduced their five-day workweek to four days, allowing employees to be more efficient

and spend more time with their families. They have also ensured that an employee can work from

anywhere in the world, which should assist the employee in completing the work in their own time.

Also, Netflix has proposed Paid Maternity Leave so that new mothers can spend more time with

their babies while feeling less stressed. Starbucks has an A+ rating from 1027 employees, putting

within the highest 5% of companies of similar size on Comparably. 56% of Starbucks employees
are happy with their work-life balance, while 47% are stressed. To keep staff members satisfied

and productive, a well-balanced work-life is required.Approximately 84% of Starbucks employees

spend 8 hours at work or less per day, with 5% working 12 hours or more. A large percentage of

Employees are delighted with their work-life stability and don't consider themselves to be burnt

out.Employees in the Customer Support department generally believe they have a good work-life

balance, whereas employees in the Business Development division and non-Binary employees

believe there is room for improvement (Starbuckswork-life-balance, 2023).

Analysing and evaluation

One of the most important aspects that organisation managers must focus on is conducting cross-

cultural training with their staff members so that when they are transferred to an international

market, they face fewer problems and experience less cross-cultural shock. Some of the most

significant aspects of a company are diversity and cross-cultural training. Managers around the

world have to implement training in all areas, including hard and soft skills. The immigrant training

program concentrates on people who possess an understanding of their field as well as

an understanding of the organisation and that can do a couple of things in a global location: one,

add value to the expertise that can add value to the assignment/project, and two, boost their

involvement through possessing that international experience. Framework in which global

organizations follow certain codes of conduct and ethical business practices in managing

employees in worldwide marketplace surroundings discussing examples of a few significant

unsuccessful attempts in regards to strategic human resource management one company that

deserves to be pointed out is amazon nevertheless Amazon has additionally obtained the

reputation of being among the most customer-centric enterprises yet there customer-obsession

and company's never-ending obligations to serve its customers sometimes causes them to fail

(Kantor and Streitfeld, 2015).

Tuckman’s theory

Business teamwork can be challenging. It always tends to take a while for a fresh team to

somehow get used to one another and to their various working styles. According to one theory, a

team must undergo 5 phases of growth before achieving its full capability. Tuckman's Model refers

to the stages recommended by psychologist Bruce Tuckman. But what is Tuckman's model, as

well as the 5 phases suggest. Let study further.

Tuckman's idea was initially proposed by Bruce Tuckman, a psychologist, in 1965. Employees will

go through five stages of development: formation, storming, norming, performance, and

adjourning. This stage is slated to begin when the team first meets and continue until the work is

completed. Each rhyming stage is well named and plays an important part in the building of a

functioning properly business team. (FreshBooks, 2022)

Forming

The initial stage of creating a team has started.

The team was only recently constituted, and the mission was only recently assigned. This is a

fascinating psychology phase because team members at this phase tend to behave individually.

Despite the likelihood of good humor and good intentions, trust will not be obvious. (West Chester

University, 2020).

At this stage of team development, it is usual to discuss:

 Abilities, environment, and interests are different.

 Project goals
  Agenda

 Any policies or laws

 What specific roles will each employee play

It is detailed that the team starts developing an awareness of the significance that everyone will

perform at this stage.

Storming

The storming stage comes once the initial enthusiasm and good humour have gone off. The reality

of the project's completion has most likely struck in. This might be the time where egos develop

and tempers flare. The team may disagree on how to do a particular assignment or express

concerns. At this stage, it is critical to turn to a powerful leader for advice. (West Chester

University, 2020).

Norming

Things usually calm down at this point. Your unit might form the habit of cooperating towards a

common objective. However, throughout the norming stage, there may be a link with storming. As

new tasks emerge, there may be some instances of conflict. However, because you've already

been through the most difficult stage, these conflicts may be easier to resolve. 2020 (West Chester

University).

Performing

The group will find its feet on the performing stage. Every member of the group is aware of each

other's strengths and weaknesses and is informed enough of each other to assist. Everyone in the

group is competent and ambitious at this time. It's also an area where they can operate freely.

Because a few teams never make it to this stage, your accomplishment is noteworthy. It is the

stage that every group strives for since it is where you are capable of your best job. Teamwork in a

supportive and cohesive environment can generate innovation and enhance morale among team

members. (West Chester University, 2020).

Adjourning

The final level was not added by Tuckman until 1977. The entire group will disengage once the

project is completed. If they have progressed to the performing level, there may be memories of

times when they were close. If you deal with a handful of these folks again, providing pleasant,

shared memories will make the process easier. (West Chester University, 2020).

Conclusion

The chosen analysis focuses on how great management and leadership play an important role in

achieving strategy. It is critical for today's executives in business to understand that good manners

do not focus solely on the economic aspects of the business, but rather on developing a

sustainable company approach that includes both the development of the economy and society

(Rees and Smith 2021). It is highly recommended that managers all over the world focus on

developing a strong collaborative framework that will assist employees in adhering to a specific

code of conduct. Along with proper performance evaluation and recognition, their efforts are critical

in ensuring human resource management in today's globally comparable business environment.

Human resource management for international companies can be a difficult challenge. MNCs are

constantly striving to strengthen their international HRM strategies. The proper applicant for the

overseas project should be chosen according to general selection rules, notably cultural adaption

factors. Training is essential before to assigning the task to make the individual aware of the

problems ahead. The next core element in global human resources management involves

handling repatriation through an expatriate career development plan and employee counselling. A

good remuneration approach enhances employee morale and motivates others in the firm to take

on foreign projects. To prevent disputes with labour and labour unions in a parent nation, MNCs

must seek to preserve good labour relations. HRM, if properly addressed, can surely be leveraged

to obtain a minor competitive advantage for firms growing across borders.

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