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The Company’s Information System as a Factor for Cultural Differences in Multinational Companies (Part 2 of 3)

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Keywords:  Legal, Economic, Corporate and Organizational Culture

© 2017 Martin Zafirov, PhD Student, New Bulgarian University (F29144)

Editor: Yara Mohamed, Mona Timor Shehata 

Publisher: Amira Haytham

The group of legal aspects (legal factors), which influence the formation of cultural differences are the following: the legislation which settles the employment relations in the respective country. This includes various standards for safe and healthy working conditions, setting or not setting a minimum wage, length of the work week, paying of overtime, health and social benefits, right of breaks and vacations, protection of the employees from discrimination, misuse of their labour, the right to strike, and labour market regulations (unemployment offices, training and recruiting organisations).

The group of economic aspects includes indicators related to the development of a given company’s business activity, includinag those related to the management of the human resources in the organisation. The objects of interest are: the country’s minimum wage, the average level of wages in the respective sector and in the economy as a whole, the consumer expenses/savings ration, price indices, GDP per capita, Human Development Index, unemployment rate, inflation, interest rates, business development and exchange rate, and exports and imports.

The internal factors which lie at the heart of the cultural differences appearing in a given transnational company, and in turn exert a strong influence on the system with which the company’s human resources are managed, are the following: corporate culture, organisational structure, and the corporate information system.

The influence which these factors exert on the company workforce is direct (immediate); on the one hand, they are an integral part of the daily work of the employees. On the other

Corporate culture as a factor is defined as a “systems of values, customs, traditions and meanings which make a given organisation unique”.

Organisational structure, as a culture differences factor, is defined in two aspects: The first has to do with the organisational structure of the international company – the main principles and corporate values established in the process of its business operations, while the second has to do with the organisational structure in a given country, where the transnational company has a branch. Language is the main problem in the organising and managing of a transnational company; it is also the main difference between the company’s employees from different countries.

Each language is characterized by specific features; for example, consistent word groups whose meaning manifests in a specific context; differences between the interpretation of individual facial expressions and gestures; the existence of a multitude of synonyms for one and the same word; the usage of more than a word which have the same meaning. For this reason, the knowledge of the language of the respective country is a carrier of useful information and an opportunity to establish contacts with the local population. As for language within transnational companies, the local language is widely used in the local branches of the companies and it might make communication with the headquarters more difficult. Thus, in-depth knowledge of the language should allow easier understanding of the local cultural context.

The mixing of several religious communities within a single country where the company operate is also a challenge for the company’s management.

In order to conduct successful business, a given transnational company needs careful monitoring of the changes in the behavior and customs of their employees. Globalization also has an impact on behavior; thus, taking this circumstance into consideration can be an advantage for the international company. Monitoring the behavior of the employees, in this case, means both monitoring the habits of the consumers (usage of the products, preferred packaging, etc.), and their habits in the local offices of the company. Differences could influence the relations between the management and company employees, as well as between the employees themselves on the same managerial level.

The management of the human factor in a company—in particular its management in the conditions of a presence of cultural differences—is influenced greatly not only by the organisational structure of the mother company, but by the structure of its country branches. Each organisational approach is distinguished by its specific characteristics in relation to formalization, complexity, and centralization. Formalization is determined by the degree of standardization of the activities; complexity, by the degree of differentiation which can be horizontal, vertical and spatial; and centralization, by the degree in which decision-making is concentrated in one point in the organisation.

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Wellbeing @ Work Summit Middle East 2021 – where balance, resilience and authenticity break the Mental Health Stigma

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Written by: Cinzia Nitti

Globally, 2020 has been a year like no other. Coronavirus pandemic caused a massive business disruption; transformation has been key in supporting employees and catalyzing workplace changes. There was a rush to adapt and reinvent Business Models. Organizations had to rethink and reconsider how they deliver services and strengthen their Organizations through a forward-thinking Digital strategy. To be more agile and responsive in such uncertain times, we need to respond to challenges and adapt quickly to new scenarios by moving from rigid hierarchies to leaner and more flexible structures.

But what about Mental Health at Work, and why is it essential?

What’s the Office of the Future?

Within the Wellbeing @ Work Summit Middle East 2021, HR Leaders tried to normalize the conversation about Mental Health by putting the topic first, enabling self-care and professional support, raising awareness, and building knowledge around its related issues. Nowadays, personal and work life are more intertwined than ever, so it becomes vital to create balance: the more employees feel free to talk about Mental Health, the more they can prevent struggle and breakout at the Workplace. HR leaders play a crucial role in making an IMPACT by pushing new solutions, promoting work-life balance, redesign workloads, and supporting their Teams.

In this general frame, Irada Aghamaliyeva (MENA Diversity, Inclusiveness & Wellbeing Leader at EY) affirmed: “Workplaces that are inclusive foster enhanced employee wellbeing; employees with high levels of wellbeing are more inclusive”. How can Organizations increase employees’ resilience and embed sustainable Leadership behaviors in the post-covid reality?

Dr. Irada Aghamaliyeva introduced the Mindfulness practice in the Workplace and highlighted its benefits on a large scale: improved wellbeing and resilience on a physical level; positive emotions, self-regulation, empathy and awareness of social dynamics; learning and innovation thanks to the implementation of flexible thinking, intuition and problem-solving processes. So breaking the stigma is possible, starting from personal wellbeing to sustain positive energy and fuel resilience.

About the Power of Empathetic and Authentic Leadership, Dr. Rima Ghose Chowdhury (EVP & Chief Human Resources Officers at Datamatics Global Services) stresses the importance of Leadership roles today. The virtual environment employees are working in, makes them more vulnerable due to a lack of balance between emotional and authenticity traits. Authenticity is the primary factor in effective leadership, regardless of the leadership style. Putting employees first as a strategic priority and hearing their voices to guide strategy; embracing agility to work more effectively in tumultuous time; including a multigenerational work-force: these are the key concepts within Dr. Rima’s motto “Empowering is to enable”. Through motivation and filling emotional support needs, the Empowering Teams Process leads to employees’ safety, esteem, and self-actualization. 

The Wellbeing @ Work Summit delivers strategic direction, advice and inspiration from employers and experts from across the world to help you create a more compassionate corporate culture that delivers results. To know more about the FOW Future of Work Insights platform around the world, click here: https://fowinsights.com/

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The Wellbeing @ Work virtual Summit Middle East returns for its 5th annual event on 22-24 February 2021

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The summit provides an innovative and experiential virtual learning opportunity for our audience of CEOs, benefit and reward business leaders and senior HR professionals. The information and knowledge gained from attending this event allow the opportunity to make strategic wellbeing and mental health decisions within an organization, supporting our mission to create more flourishing and thriving workplaces. Never before has the mental health and wellbeing of your employees been so important. The Wellbeing @ Work Summit includes keynote speeches, panel discussions, workshops, and fireside chats alongside unrivaled networking with leaders across the Middle East using our AI-enabled matchmaking platform. This is far more than a webinar! An engaging 3-day event providing you invaluable insight and tools to create thriving workplaces.

Key Reasons to Attend:

  • An engaging AI-enabled matchmaking platform to make invaluable connections & host virtual meetings up to 2 weeks before the three-day festival
  • Learn how multinational organizations are creating workplaces where employees thrive in the new world
  • Campfire panel discussions informing workplace change & mental health solutions
  • Middle East-based employer case studies providing the secrets to employee wellbeing success
  • International experts bringing best-practice from across the globe
  • Invaluable networking with business leaders from across the Middle East

The Wellbeing @ Work Summit delivers strategic direction, advice and inspiration from employers and experts from across the world to help you create a more compassionate corporate culture that delivers results. The design and implementation of a holistic wellbeing and mental health programme that delivers healthy outcomes and a more productive organization is paramount right now. 

In addition, the results of the extensive Middle East region-wide survey on wellbeing and mental fitness in organizations across the region made in partnership with Cognomie will be presented during the event.

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DECODING FUTURE HR: Global 24 hour virtual event | 19 and 20 January 2021

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DECODING FUTURE HR: Today’s challenges are tomorrow’s trends and opportunities

Global 24 hour virtual event | 19 and 20 January 2021

www.decodinghrevent.com

The world in 2020 has changed to a ‘new normality’ but what’s that ‘new normality’ everybody talks about? Is it here to stay? How is it affecting us in our daily lives in the different versions of ourselves? As a customer, an entrepreneur, a parent, a friend…a worker…

Our job is a key part of our lives and we are indeed living through a fundamental transformation in the way we work. Automation and ‘thinking machines’ are replacing human tasks and jobs, and changing the skills that organisations are looking for in their people. These momentous changes raise huge organisational, talent and other HR challenges. It has become clear that few organisations are likely to revert to pre-pandemic practices even after a vaccine is found.

Decoding Future HR 2021 is bringing you the ideology of how today’s challenges are becoming tomorrow’s trends and opportunities resulting in HR excellence.

Why you should attend:

  • Learn about the trends and best practices shaping future HR
  • Get valuable insights from expert speakers
  • Share ideas and research to help your organisation reach its goals
  • Understand what do employees want in ‘New Normal’
  • Develop new vision for HRBP and Centre of Expertise
  • Identify, integrate and understand stakeholders to create an intentional employee experience
  • Approaches and elements to leadership development.

Some of our confirmed speakers:

  • Tshepo Yvonne Mosadi , Human Resources Director, The HEINEKEN Company
  • Sarah Tabet, Global HR Director/ D&I Leader | Author for “Inclusion Starts with U”, Schneider Electric
  • Wadah Al Turki, Country Talent Manager KSA and Bahrain, IKEA
  • Lesha Chakraborti, Head of HR – EMEA, Travelex
  • Shaban Butt, Director HR & Administration, The Coca-Cola Company
  • Sajjad Parmar, Head of Rewards – APAC, eBay
  • Katey Howard, VP, Talent Management AMESA, Pepsico
  • Chen Fong Tuan, HR & General Affairs Director, Samsung Electronics
  • Prerna Ajmera, Senior Director, HR Experiences and Solutions, Microsoft
  • Václav Koranda, Vice President Human Resources / Member of the Board of Directors, T-System
  • Amy MacGregor, VP Employee Experience, Global HR, Manulife
  • Adwait Kashalkar, People Analytics and Programme Management Leader, APAC, Mastercard

Click here to view all speakers: www.decodinghrevent.com/speakers

At Wisdom we remain positive that ‘normality’ will soon return and that we will be able to physically meet together once again as speakers, delegates and sponsors at our beautiful venues around the world. But meanwhile, life continues and we need to keep in touch and learn from each other. This 24-hour virtual event will be of great benefit and value to your businesses and its continued development during these challenging times. While this virtual event comes at a lesser cost, it provides for now a wider reach into an international audience, with flexibility of access to content as well as allowing you to have the same opportunity as at a face-to-face session for one-to-one business meetings. We look forward to welcoming you in January.

Date and time: 19-20 January 2021Where: Virtual engaging platform
  Further information and bookings: www.decodinghrevent.com        Contact:
marketing@wisdom.events   #WSDM_BI
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