Cultural Issues in Global Organization
Global organizations are companies whose operations are not limited by the national boundaries, but expand their operations worldwide. Globalization and advanced technology place an essential role in ensuring the success of these organizations because they help in communicating and giving an understanding of different cultures maintained by different communities, which the organization trades with. Strategic leaders have the responsibility of creating and maintaining the organizational characteristics to reward and encourage communal effort. Organizational cultures help it ...view middle of the document...
To overcome these issues, the management must understand them and develop a strategic plan that would help in dealing with them.
McDonald is an organization that was started in the United State to offer fast food services to the customers. The organization started as a small organization aiming at supplies snacks to the Unites States. The organization has expanded its operation to several places in the world trying to overcome the barriers of cultural and ethical differences. The organization expansion aims at accessing cheap labor from other countries and enlarging the market hence increased profitability. The company has a continued expansion in the line of its products so that it can satisfy the needs of the customers globally (Adamy, 2009). There are some places where the entries and operation of McDonald cafes has been faced with strong cultural differences that hinder its success in those parts. The management develops plans that would curb this problem by introducing assorted menu that would fit the requirements of the customers from diverse cultures.
Despite the effort in the management to increase the sales and capture new market share, McDonald is still faced with cultural difficulties. The main snacks that the organization offers- burger and fries, are largely enjoyed in the United States, but people from other parts of the world prefer a different menu that is not clearly defined as the far it can go. The staff is competent in preparing the burgers thus introducing new foods to the menu gives them a challenge since they lack sufficient knowledge.
Different cultures in different states have different legal systems. Although one of the major reasons for the McDonald Company spreading it operation to other countries is to access cheap labor, there are some countries’ legal systems that prohibit foreigners from employing her citizens at a cheaper wage terming it as exploitation. Other limit the working age thus even if there are poor people who would seek employment, they cannot be hired before attaining a specific age (Times, 2013). The management is affected by the legal systems that govern employment making it hard for them to run their business smoothly.
On analyzing the ethical and social responsibilities of McDonald, there are numerous factors that need to be considered so that the company may expand. These factors include cost and customer’s preferences. For the organization to remain competitive in the market, the management has to come up with ways of reducing costs. MacDonalds has opted to outsource labor from cultures that has favorable labor policies that can enable them to hire employees at a cheaper price. Since the organization is global, the management hires people both locally and it can still institute top management personnel from the headquarters ensuring efficiency and uniform managerial skills despite the location of the outlet (Adamy, 2009). With this arrangement the...