Cross cultural management. For Riordan to become a successful global company, it needs to look at other businesses and benchmark how these companies manage cultural differences. Riordan can implement several programs to respond to this type of challenge f

University Degree Business and Administrative studies

Cross-Cultural Management: Riordan

Cross-cultural management is important to all companies. It is especially important for companies that want to become global. Throughout this paper, the authors will discuss several examples of how companies apply cross-cultural management principles and how other countries deal with similar cultural differences. The companies discussed in this paper are DHL, UPS, Starbucks, 3M, Trinity Industries, Community Development and Management Association of Africa (CDMAA), Pepsi Co, and CISCO.（所用例子）

This paper will focus on different areas concerning culture. These key concepts include cultural differences, organizational culture, Cross-Border External Environment and Cultural Synergies, and International Management（key areas）

Key Course Concepts

For Riordan to become a successful global company, it needs to look at other businesses and benchmark how these companies manage cultural differences. Riordan can implement several programs to respond to this type of challenge for the company. Receiving input from its employees is critical for Riordan. This input can make a huge difference on how they should do these things and it can help the company meet the needs of their employees.

Cultural differences are what distinguishe societies from one another. Many companies go global and cultural differences are very important, especially as it pertains to communication. In addition to effective communication hinging on understanding internal cultural differences, organizational culture is another cross-cultural management principal that can assist Riordan as it seeks to expand globally.

Riordan wants to create a work environment in which different cultures can work together respectfully and efficiently. Riordan can benchmark the success of the organizational culture of 3M and Starbucks to help Riordan create a diversity work environment. Organizational culture can be defined in various ways. “Organizational culture is the shared beliefs that enable members to understand their roles and the norms of organization” (Hodgetts, Luthans, & Doh, 2005, p. 154). An international company has to cultivate an organizational culture that can bridge business operations across several countries and diverse cultures.

Riordan faces many challenges regarding cross-border external environments and developing cultural synergies. Each employee places a value on the traditions and memories of his country of origin that Riordan must consider. One of the authors, Walters, observed firsthand how an organization works toward employee advancement. Trinity Industries provides a management team that understands the practices of the various cultures and works with individuals to achieve a progressive work environment. Recommendations come from the management teams to promote interactive activities that mix the various cultures and encourages dialog. This dialogue results in personal interactions that become a bond between individuals. After forming the bonds, the employees coalesce as a cohesive unit that achieves or even exceeds positional expectations. Developing this cultural synergy is a key management concept, and one that applies to companies operating internationally.

If Robert Lord, Director of Operations in China, fails to apply sound international management principles and cannot integrate the diverse cultures of Koreans, Pakistanis, Chinese, and Indians into an efficient workforce, the new facility will not meet production goals. He can benchmark the global HR integration successes of CISCO and PepsiCo to help him solve this problem. “International management is the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments” (Hodgetts et al., 2005, p. 6). Both CISCO and PepsiCo operate globally, both create a concerted effort to ensure multicultural inclusion, and both create successful work environments.

The Compared and Contrasted Practices of Each Company

DHL and UPS are very similar companies. Not only are they very similar for what they do, but they are also two major global companies. Both companies have implemented two different types of programs and these programs have had their challenges, but they have been very successful for these companies over the years. DHL has employees throughout the world so keeping its managers trained concerning culture is very important. Its managers will be those who deal with these people on a day-to-day basis no matter what country in which they live.

UPS is very similar to DHL, and it has a similar program within its company, but UPS focuses on more input from their employees. UPS advocates that the employees need to be a part of this program and that their input is very important.

Starbucks and 3M are companies that devote significant resources to creating a work environment that value and respect people from diverse backgrounds, respect their customs and beliefs, and allow its employees to do their best work. Starbucks’ diversity approach focuses on partners, customers, suppliers, and communities. Starbucks respects its employees’ talents, experiences, and outlook, and this approach makes Starbucks success possible (Starbucks, 2010).

3M also values diversity in the workforce, in the global market, and in the communities in which it serves. 3M created a culture that encourages employee satisfaction and well-being, promotes integrity, and supports social and environmental responsibility (3M, 2010).

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The benchmarked companies of Trinity Industries and CDMAA provide avenues of success regarding cultural differences in organizational culture, cross-border external environment, cultural synergies, and international management. Regarding cultural differences, Trinity Industries and CDMAA respect many cultures within its workforce and attempt to adapt to cultural differences. Organizational culture is promoted at Trinity Industries and CDMAA as geocentric organizations that observe and react to the global and regional cultures of the individual. Cross-border external environments provide challenges to Trinity Industries because many plants are near the borders of other countries, resulting in applicants from many diverse backgrounds. The CDMAA, on the other ...

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Cultural synergies are an indication of successful management. When the two benchmarked companies motivate the workforce to face issues and challenges, the employees respond through one voice regarding company direction or the betterment of current processes. Finally, both organizations use international management principles that require changes to the designs of any management team to remain at the leading edge of business that spans several countries.

PepsiCo and Cisco are both globally successful companies that must employ innovative international management principles to create a work environment that allows the different cultures of its international workforce to remain challenged, productive, and secure in the belief that each is judged by merit alone. PepsiCo has four times the employees of Cisco, and its efforts at creating mechanisms to anticipate employee problems and correct them before the issues become dysfunctional are more robust than Cisco’s efforts. Although Cisco adopts an appreciation for multiculturalism that centers on productivity, PepsiCo goes even further by creating a code of conduct for all employees and actively promoting a worldwide, integrated approach. This approach balances its workforce with that of the community it serves, ensures diversity of suppliers, promotes cultural diversity in its corporate job positions, and supports minority franchise efforts. Finally, PepsiCo also gives back to community efforts that support cultural diversity through its corporate giving and community charity programs (PepsiCo, 2010, Talent Sustainability).

Company Research on Cross Cultural Management Factors

DHL is a major logistics company. One of the main components of DHL is DHL Global Forwarding. This portion of the company is located in the Asia-Pacific Region. The people from these areas deal with people from nearly forty countries. At DHL the biggest thing that is dealt with is that there is a language issues with poses a problem when it comes to communication. There is also a difference in work culture and this is a major challenge that a DHL manager may have to face.

“The DHL manager will have to be trained in studying the different cultures of the markets he may operate during his stint in foreign markets. Even then he will have to have a lot of patience and understanding to bring the corporate work culture into each market” (Scribd.com, 2010). Something that DHL has used and had their managers use is the tool Hofstede Cultural Dimensions Model. This model differentiates cultures into five dimensions.

These dimensions are: power distance, uncertainty, masculinity, avoidance, individualism, and long-term orientation. These are very popular and this is a model that can be used at Riordan when it comes to their cultural differences. DHL does not only deal with countries in Asia, they deal with all countries all over the world. Having the correct training is very important for their managers and making sure that all obstacles can be avoided.

At DHL with implementing and using these tools this can help a company that is trying to become global into new markets. Another thing that DHL was implemented a program that was called 360 Online Degree Feedback frameworks. This would help the company when it came to performance management, talent review, and senior leadership development program. This program would help the managers adapt and learn when it came to facing challenges in all multi-national companies. The 360 degree feedback program would help managers when it came to understand and needs of employees around the globe.

Riordan could implement a program such of which DHL had implemented if they would like to become global and their managers will then know what needs to be done in order to face any challenges within these countries of the markets that they would like to move their business into.

UPS has been known to be one of the largest shipping companies beside that of DHL and FedEx. FedEx still holds that number one spot, but there are several things that UPS has done over the years when it comes to cultural differences. One of the biggest things that UPS has had to deal with since becoming present in the global network is that this company needed to meet all international standards. Something that UPS has done was to put together a program called the UPS code of conduct when it comes to their global operations. This program is known not just in the United States for the employees, but is worldwide no matter what country that employee is from.

The employees at UPS can give their input when it comes to the code of conduct. This could be something that is done within Riordan, especially getting input from their employees when it comes to a decision or a program such as what UPS uses within their company. UPS faced conflicts when integrating this code of conduct. This is going to be common no matter where you are or what business you work for. Some of the things that were faced within UPS is that there was resistance from certain countries. They did not want to use such a program that was being provided. There was a phone line that employees could call into and this was called a conduct line, employees did not like this and thought that it should be called a health line instead.

“Tone, wording, sensitivity to certain issues and translation matters are all common when developing global policies. It is important to address these matters in the development rather than go back and make amendments later. Employees in other countries respond better to policies that make sense to them and relate to cultural familiarities. The development process helps the company’s compliance department learn more about their overseas counterparts. This makes it easier for both groups to understand and become aware of the cultural differences between each group” (i-sight.com, 2010).

In order for Riordan to control any cultural differences they can focus on this type of program for this company especially if they would like to become global just like UPS is and how successful they have become over the years.

3M respects the differences that each employee brings to the company and understands that diversity is the key element and success for any organization. “3M is dedicated to providing a work environment in which all employees can succeed; employees are valued for his her individuality, and provide equal opportunity for all employees” (Diversity at 3M, 2010).

Diversity at 3M States by retaining diverse talent will allow the organization to control their internal knowledge for the expansion of business opportunities. To attract and retain international talent, Riordan will need to maintain a competitive edge in China. To attain Chinese labor, Riordan will need to find alternatives to increase motivation and the morale of the employees in the organization. In doing so Riordan can retain, and attract quality skilled labor and as the economy continues to grow and competition increases, organizations will constantly have to find ways to maintain the most skilled employees.

“Starbucks has somewhat adopted the “When in Rome approach Doctoroff advocates” (W.P. Carey, 2006). Starbucks has learned to adapt to China’s condition by creating combined projects with their Chinese partners and looking to hire qualified Chinese managers to manage operations instead of hiring them from abroad. Starbucks also established and currently maintains good relationships with China’s government administrators (W.P. Carey, 2006).

Riordan Manufacturing can gain knowledge from Starbucks by building a working environment that values and respect people from diverse backgrounds in which employees can value each other opinions, beliefs, and culture. Like Starbucks Riordan can also learn to adapt to China’s customs. “Such adaptation involves comprehending cultural diversity, insight, stereotypes, and values” (Hodgetts et al., 2005, p. 92). Like Starbucks, Riordan’s chief executive officer has chosen Lu Chen, Assistant Plant Manager, to take over as Director of Operations in China. Riordan will have on-site support to help with local contracts, hiring of personnel, legal, and negotiation assistant. In today’s global market, more companies that are American are starting to hire Chinese nationals that have been educated in the United States (Orfield, 2006).

Trinity Industries is global organization in manufacturing spanning many functions including railcar manufacturing, leasing, and management, barge manufacturing, construction products, and energy equipment. As noted on the company’s Mexican subsidiary website “At present the company has 78 facilities throughout the U.S., Mexico, South America and Europe all utilizing the most rigorous quality programs” (About Trinity, para. 4). The link of quality as a common language between companies from around the world provides a common base that encourages interaction between different cultures. From personal experience, Trinity Industries hires the best people from the local talent pool who hold values such as integrity and a sense of choosing the correct path that will benefit the organization while furthering the ambitions of individuals in the local community, resulting in a motivated workforce.

Fostering cross-border external environments also benefits from the interaction between employees who must discuss issues in the language and inflections of Quality Control employees. Cooperation begins on an interpersonal level between individuals who have something in common. According to the Journal of Instructional Psychology, “No structural changes can force different individuals to meet each other and develop friendly relationships. The solution lies in establishing and multiplying interpersonal connections at the level of the individual” (Sizoo & Serrie, 2004, para. 16).

The design of Trinity Industries to adapt to local cultures through a local employment and a common language would benefit Riordan Industries. One method includes a template to allow cross-cultural interaction between and across the different cultures of individuals from China, Korea, India, and Pakistan through the common language of Quality Control and other systems designed to promote cross-cultural interaction. Other interaction methods could include cultural awareness seminars and further interaction through social events that may include picnics, dinners, and activities designed to further the realization that individuals of different cultures may not be so different after all.

Riordan’s expansion requires the integration of different and often conflicting cultures. The use of local expertise will provide Riordan with qualified employees who understand the local culture and have the knowledge necessary to complete the tasks necessary for achievement of goals that begins with a common language.

CDMAA provides a channel through which the energies of many cultures can combine and realize benefits through synergistic methods designed for, “An understanding of the following elements: culture, synergy, systems, and creative problem-solving, (Preston & Armstrong, 1991, para. 4). Synergy blends participants who create a culture significantly different from original and expected behaviors. Synergy is not a dedicated process in which an organization institutes steps designed to reach a certain goal but instead a method that realizes the useful input of one culture that may have been overlooked. Synergy depends on many functions of a group that include trust, communication, and feedback that encourages current patterns of addresses areas eligible for improvement.

If Riordan were to adopt a strategy of attaining synergy between the different entities such as those that constitute CDMAA, Riordan will be in a position to blend employees of different cultures toward a common goal through elements that include trust, communication, and feedback. Cultural synergy strategies consist of understanding strategic predispositions of a company in relation to a customer with different ideals. Cultural synergy combines different cultures through implementation of goals that are attractive to each organization. The example of CDMAA is an organization with a geocentric orientation. The geocentric orientation provides the organization with a strategy of global integration and responsiveness that ensures the customer of a dedicated employee base who are aware of organizational involvement with other organizations and countries in which business occurs. The interaction required in attaining synergistic behavior between organizations must have cooperation from upper management in the areas that are most important to a synergistic organization which consist of empathy regarding other cultures, management who is willing to adapt to different cultural requirements, and a workforce ready to integrate the methods and beliefs of different cultures.

Synergy within different cultures allows an organization to blend the organization’s mission with the organizational values. The incorporation of beliefs and values of different cultures within an organization provides the necessary groundwork for the need of cultural synergy to achieve the goals of Riordon and Trinity Industries.

PepsiCo Inc. (PepsiCo) has more than 285,000 employees internationally, so understanding and using performance management tactics plays a large role in sustaining PepsiCo’s workforce. PepsiCo calls its performance management process Talent Sustainability. One of the promises PepsiCo makes is to create employment opportunities in the communities in which it serves, and another promise is “to foster diversity and inclusion by developing a workforce that reflects local communities” (PepsiCo, 2009, Talent Sustainability, para. 2).

In its Hangzhou fan manufacturing facility, Riordan has a mostly Chinese workforce. Because of a labor shortage and fueled by its desire to expand its current facility, Riordan seeks to make its workforce more representative of the local populace by hiring local Koreans, Pakistanis, and Indians. Riordan is concerned that it will have difficulty integrating these different cultures quickly and efficiently with its current workforce. Riordan can benchmark PepsiCo’s global success in multicultural integration.

To fulfill its global diversity and inclusion promise to its employees, PepsiCo drafted and promulgated a worldwide code of conduct. This code “applies to PepsiCo, its subsidiaries throughout the world, joint ventures over which PepsiCo has management control and to every employee, officer, and director of these companies” (PepsiCo, 2010, Code of Conduct, p. 1). PepsiCo’s worldwide code of conduct is a contract that PepsiCo has with each employee, and each employee is required to do her best to ensure that the workplace remains free from cultural discrimination or harassment. The code of conduct also instructs all employees at every level to report all violations of the code to encourage an organizational culture of inclusion and diversity that reflects the area in which it operates.

PepsiCo’s efforts over the last eight years have resulted in measurable successes. According to PepsiCo’s 2009 Annual Report’s Talent Sustainability section (2010), The percentage of associates who see diversity and inclusion reflected in PepsiCo's management in 2009 is 73%-an improvement of 16% from 2002. Additionally, the percentage of associates who say their manager supports their involvement in diversity and inclusion activities in 2009 is 80%-a 14% increase from 2004. Clearly, PepsiCo’s worldwide code of conduct is a successful tool international managers can use to build integrated workforces.

According to the Cisco company website, a small group of computer scientists from Stanford University founded Cisco in 1984. Since then, Cisco engineers have led the world in the development of Internet protocol-based networking technologies. Today, Cisco employs more than 68,500 personnel in 200 countries (Cisco Corporate Overview, 2010). Because Cisco operates globally, it must successfully embrace opportunities of international multicultural diversity and affirmative action. “Recognized for its strong employee culture, Cisco continually ranks in the top 20 employers in nearly every country that evaluates employers and has garnered recognition throughout the world for its employment, diversity, inclusion and workplace-flexibility practices,” (Cisco Biography, 2010, para. 2).

In the Riordan scenario (University of Phoenix, 2007), Robert Lord has to find a successful management strategy to integrate the different cultures of his new facility’s workforce. Even though his management team successfully integrated Chinese and Americans in the current facility’s workforce, they will face new challenges integrating Koreans, Pakistanis, and Indians into a new workforce. CISCO realized the HR challenges integrating a global workforce, so it hired Brian Schipper in 2006 to lead its global HR function. Schipper established a vision of attracting the best international talent to influence the global Cisco business model and significantly invested in the acquisition of HR talent at all levels globally who not only mirror the local customers but also bring new ideas to the table. So far, Schipper’s team “has enabled the business to attract, hire, develop, and engage a global workforce with diverse talents and skills” (Cisco Biography, 2010, para. 3).

Cisco’s Chairman and CEO, John Chambers stated, “Our inclusive culture promotes a creative, innovative, and collaborative environment that helps fuel our globalization strategy” (Cisco Diversity, 2010, para. 1). By integrating respect for international cultures into business processes and operations, Cisco values its HR professionals as important stakeholders, business leaders, and drivers of shareholder value. Finally, Cisco’s diversity vision, “aims to fully embrace the human network in all its multiplicity and to foster innovations and talent in the workplace” (Cisco Diversity, 2010, para. 2). Maybe that is why Fortune Magazine has listed Cisco in its “Fortune: 100 Best Companies to Work For” list as number six for two straight years (CNN Money, 2010).

Conclusion

Riordan Manufacturing has the potential to harness the productivity of an integrated and motivated workforce in its new facility in Hangzhou, China, if it can successfully apply cross-cultural management principles. Using the successes of the benchmarked companies, Riordan’s managers can create and implement those procedures that will foster a work environment conducive to cultural diversity, team building, and respect.

Many of the benchmarked companies show that the early involvement of managers dedicated to facilitating a culturally integrated workforce is vital for a company that seeks to expand globally. These companies show that mutual respect, cultural awareness, and an enforcement of human rights lead to diversity acceptance and workforce integration. If Riordan wants to ensure it has a successful global business operation, it needs to apply successful multicultural programs and their corresponding management principles.

References

3M. (2010). Our Company. Retrieved July 7, 2010, from http://solution.3M.com/wps/portal/3M/en_WW/About3/3M/

Cisco Biography. (2010). Brian Schipper. Retrieved from http://resources.cisco.com/servletwl3/FileDownloader/vamprod/606526/Brian_Schipper_Bio_6.10.pdf

Cisco Corporate Overview. (n.d.). Retrieved from http://newsroom.cisco.com/dlls/corpinfo/factsheet.html

Cisco Diversity. (2010). Inclusion and diversity. Retrieved from: http://www.cisco.com/web/about/ac49/ac55/index.html

CNN Money. (2010). 100 Best Companies to Work for 2009 List. Retrieved from http://money.cnn.com/magazines/fortune/bestcompanies/2009/snapshots/6.html

Diversity at 3M. (2010). Retrieved on July 7, 2010 from http://solutions.3m.com/wps/portal/3M/en_US/us-diversity/diversity/3M/3m-invests-diversity/

Hodgetts, R. M., Luthans, F., & Doh, J. P. (2005). International management: culture, strategy, and behavior. Retrieved from the University of Phoenix eBook Collection database.

I-Sight. (2010). International Code of Conduct: United Parcel Service. Retrieved July 9, 2010 from http://i-sight.com/best-practice/international-code-conduct-united-parcel-service/

Orfield, K. (2006). Go East, young executive. Retrieved July 7, 2010, from http://www.bus.wisc.edu/update/winter05/business_in_china.asp.

PepsiCo. (2010). 2009 Annual report. Retrieved from http://www.pepsico.com/annual09/talent_sustainability.html

PepsiCo. (2010). Code of conduct. Retrieved from http://www.pepsico.com/Download/CodeOfConduct/English_09.pdf

PepsiCo. (2010). Talent sustainability. Retrieved from http://www.pepsico.com/Purpose/Talent-Sustainability.html

Preston, J.C., & Armstrong, T.R. (1991). Team building in South Africa: Cross cultural synergy in action. Public Administration Quarterly, 15(1), 65-82. Retrieved from EBSCOhost database.

Sizoo, S., & Serri, H., (2004). Developing cross-cultural skills of international business students: an experiment. Journal of Instructional Psychology, 31(2), 160-181. Retrieved from Gale Power Search database.

Trinity Industries de Mexico. (2010). About Trinity. Retrieved from http://www.trinitymexico.com/AboutTrinity.aspx

University of Phoenix. (2007). Week Four supplement: Riordan Manufacturing – Company Overview. Retrieved from University of Phoenix, MMPBL/560 – Managing in a Cross-Cultural Environment course website.

W. P. Carey School of Business. (2006). Starbucks Banks on the Middle Kingdom’s Middle Class. Retrieved July 6, 2010, from http://knowledge.wpcarey.asu.edu/aboutus.cfm;jsessionid=f030769bba500d3b3ab359e1c4b7b8205514

Cross cultural management. For Riordan to become a successful global company, it needs to look at other businesses and benchmark how these companies manage cultural differences. Riordan can implement several programs to respond to this type of challenge f

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