Cross-Cultural Management For Management Of Cross-Culture

Cross-cultural overview of the McDonalds in host country Australia

Describe about the Cross Cultural Management for Management of Cross-Culture.

This report reflects the importance of the cross-cultural management in the organizations so that an integrated system can be adopted throughout the different section of the business. Management of cross-culture is the new concern in the corporate industry. This has been imported as the effect of globalization of different sector. There was less attention to the approach of cross-cultural management prior to the implementation of FDI Act in different countries; however, numerous corporate sectors have taken initiatives to understand the difference between the beliefs and opinions of the employees belonging to different cultural backgrounds (Thomas and Peterson 2014).

This report reflects the attempts of the American company McDonalds to maintain the fundamental Human Rights of the employees in their outlets in Australia. Moreover, this international food chain has its own policies, rules and regulations that are mainly influenced by the conditions of their native country. This report embodies the recommendation for the McDonalds to maintain a parallel approach to coordinate between the legislations and governmental policies of the original country and host country so that any cultural contradiction can be avoided in the company.

The business of the McDonalds came into force in 1940 in California by two brothers Richard and Maurice McDonald. It serves across the 119 countries through the 36,538 outlets; thus, it has become the largest service provider in the international fast food business. Almost 1.7 million people are employed by this food brand. McDonalds operates their business mainly by their own corporation. This international food chain set up their business in Australia in 1971 (Mcdonalds.com.au. 2016). Since their entrance into this country, they have faced both the success and complications in their business. For the recent business scenario, McDonalds is required to sort out the cultural conflicts to expand their business. Australia has its own cultural diversification. There are issues regarding the aboriginals along with the numerous foreign employees. Hence, it is clear that cultural sustainability is required in Australia to survive the extended economy. People from the different cultural background have their own beliefs that differ from others. When a company like McDonalds is expanding their business, they must consider the both the economic background and cultural variety present among the nation (Chhokar, Brodbeck and House 2013). The report has disclosed that McDonalds authorities are paying less amount of wages to Australian employees leading disappointment to the workers. Employees have reported that this incident has violated the fundamental rights of the workers. Moreover, aboriginals are there, who need additional attention from both the emotional and social aspect. There is dissatisfaction concerning the salaries of the workers of the Australian Mcdonalds are being paid less amount of wage. López-Duarte, Vidal-Suárez and González-Díaz (2015), mentioned that providing less salary to the workers than they deserve directly violates the fundamental rights of the employees. Therefore, McDonalds are required to follow few steps that can help this company to reduce the cultural conflicts in the organization.

Microenvironmental factors

Competitors:

Competition is one of the threats that can affect the business expansion of McDonaldsThere are few competitors in this sector like KFC, Subway, Hungry Jack’s, Domino’s Pizza etc. It gets difficult for a company to reach the satisfactory level of the employees if there are other enterprises that have already established strategies to overcome the cultural conflict management (Weber, Festing and Dowling 2013)

The Australian population is comprised of cultural diversity; their practices and beliefs circles through their cultural beliefs (Hislop 2013). McDonalds should not force the employees to practice such activities that can affect their beliefs as it can also leave a negative impact on the customer service.

Australia has recognition for the supplying of the food materials and products

Therefore, McDonalds can avail their ingredients from various suppliers.

Australian population prefers friendly approach in the service sector. They are satisfied when the service providers are more communicative and possessing a casual body language while providing any service (Caligiuri and Tarique 2012). Thus, McDonalds are required to focus on this aspect to make their business goal fulfilled in any host country (here it is Australia).

Australian council of trade unions is the largest platform that manages the requirements of the employees and act as media between the organizational authority and the workers. McDonalds must work cooperatively with the trade unions so that any inconvenience can be avoided.

Australia follows federal parliamentary policies that involve discussion over any issues and taking the decision afterwards. The Australian constitution always encourage business expansion with proper legal guidance.

Service sector dominates the economic scenario of the Australia by contributing 68% of the GDP. All the guest country can enjoy the financial support in Australia during the establishment of their business (Emmerling and Boyatzis 2012). Though there was a market fall due to the recession on 2008, McDonalds has survived that phase in Australia.

Australia contains a number of cultural diversity; however, thy possess communicative approach towards each other. Due to the cultural diversity, they have different lifestyles as well as ethnic culture (Howitt et al. 2013). As McDonalds is an American company it is required to monitor the ethnic differences and take action according to the practices and beliefs.

Australia is required to be more advanced in the technological field, thus McDonalds must frame their organization so that any major complications can be avoided. However, these has led to provision of more scope for the application of manual workforce to accomplish the business.

Macroenvironmental factors

There is set of legislations that guides any organization to build an organizational framework that is without any complication and legal conflicts. Australian legislations are firm towards the health and safety issues of the employees; moreover, the policies are also concern about the unethical and sudden termination of any employee (Karin Andreassi et al. 2014); hence, these aspects are must be followed by any guest company. However, Legal attributes are supportive to any foreign investment making the business expansion of any guest country smooth.

Australia is enriched with its natural resources and there are environmental concerns creating awareness for the service sector also. McDonalds must abide by the environmental policies to avoid any harmful activities to environment.

For this content, there is a huge issue with the giving of minimum wages to the employees in Australian McDonlads. Employees are disappointed and frustrated as authorities have not considered their demand. Human resource management applies the strategies that implements the action that narrows the conflicts among employees and employers. For the cross-cultural management, it can also be effective as it conveys the demands of the employees to the authorities and can arrange bargaining regarding the needs of the employees (Joint 2014).

Conclusion:

Therefore, this report is relevant to understanding of the cross-cultural conflicts and approaches for their management. To validate the topic McDonalds have been chosen; thus, this report can evaluate the issues one American company (guest company) can face while setting up their business in Australia (host country).

As, this report covers all the aspects of the topic it can be further reviewed when conducting any extensive research on the cross-culture management.

Reference:

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Caligiuri, P. and Tarique, I., 2012. Dynamic cross-cultural competencies and global leadership effectiveness. Journal of World Business, 47(4), pp.612-622.

Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.

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Emmerling, R.J. and Boyatzis, R.E., 2012. Emotional and social intelligence competencies: cross cultural implications. Cross Cultural Management: An International Journal, 19(1), pp.4-18.

Hislop, D., 2013. Knowledge management in organizations: A critical introduction. Oxford University Press.

Howitt, R., Doohan, K., Suchetâ€ÂPearson, S., Cross, S., Lawrence, R., Lunkapis, G.J., Muller, S., Prout, S. and Veland, S., 2013. Intercultural capacity deficits: Contested geographies of coexistence in natural resource management. Asia Pacific Viewpoint, 54(2), pp.126-140.

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Karin Andreassi, J., Lawter, L., Brockerhoff, M. and J. Rutigliano, P., 2014. Cultural impact of human resource practices on job satisfaction: a global study across 48 countries. Cross cultural management, 21(1), pp.55-77.

López-Duarte, C., Vidal-Suárez, M.M. and González-Díaz, B., 2015. Impact of cultural positions on FDI’s entry mode. Cross Cultural Management, 22(3), pp.509-526.

Mcdonalds.com.au. 2016. McDonald’s Australia. [online] Available at: https://mcdonalds.com.au/.

Thomas, D.C. and Peterson, M.F., 2014. Cross-cultural management: Essential concepts. Sage Publications.

Weber, W., Festing, M. and Dowling, P.J. eds., 2013. Management and International Review: Cross-Cultural and Comparative International Human Resource Management. Springer Science & Business Media.