Globalization is defined as a
technological, economic, cultural, ideological and economic change across
borders. Rationalization is an increase in social integration in a given area
encompassing all economic and social interactions between the units in the
region. Globalization and rationalization are contradictory objectives, because
in some cases can be the same and, in some cases, can be very different.
Source: (Kolk,2010)
According to above model, it is much easier for countries
and businesses to communicate with other countries. The cultural difference is
that values are integrated and maintain the values, beliefs and behavioral
rules developed by society, which influence the accepted behavior in a unique
way from one social group to another (Guerra, 2010). Cultural differences can
be a major obstacle for businesses, such as outsourcing, networking, mergers
and acquisitions promoted by globalization and rationalization.
These strategies often lead to the need for cooperation with
different cultures. The author can critically analyze how the negative effects
of cultural differences on the partners can be managed. Outsourcing is a business
practice in which work or work tasks are transferred to a third party. In
general, risks increase when the limit between the liability of the customer
and the seller is blurred and the division of responsibilities widens.
Regardless of the type of outsourcing, the ratio will be successful only if the
seller and the customer reach the expected benefits. It is very important to
ensure strategic relations in order to keep in mind the situation of the mother
and the partner companies.
In many cases, culture is the missing link between a
successful partnership and a failure. At the time of outsourcing, employees
from different backgrounds come together to work together. Usually, outsourcing
takes place in different countries. In such situations, cultural differences
play a key role and can lead to misunderstandings and desired outcomes. Most
leaders do not understand that outsourcing is generally a union and a
partnership where both parties must recognize work, expectations and, above
all, culture.
The external service provider is always looking at the
required details of the business and the cultural partnership when it comes to
partnering. This will ensure a smooth transition and will help both companies
understand cultural requirements and differences. This will greatly contribute
to the outsourcing of an enterprise to an offshore account, where the potential
for cultural differences is very high, which reduces the time and costs at an
early stage.
The only obstacle
here is that global networking can be very difficult when networking rules vary
across cultures. These cultural challenges can be so powerful that some world
leaders often try to avoid networking opportunities. The role of collectors and
avoidance of uncertainty are different in networking. The current was also
present but has no strong influence. This is essential, but it is not enough
for the position and the positions to be maintained, and the transmission of
different channels and traditions must be done carefully.
Formal relations
played an important role until the informal relationships entered the game. If
an informal relationship does not increase as required, the formal relationship
cannot provide sufficient support for the development and expansion of the
long-term business process. When the agreement becomes dominant and the
partners begin to legitimize a small point, the joint venture is condemned.
Confidence building is essential if collectivism and uncertainty are to be avoided.
A clear idea of the difference lies in the fact that
networks in other countries are useful. Relationships are culture: interaction
with humans has been assimilated to human nature assumptions (Ellis et al.,
2006). Power distance encourages official relations where trust in development
is less important. If the formal relationship rules, there will be less
confidence. Collectivism and high uncertainty encourage people to cooperate
closely, and that is why trust is a key issue in these cases.
The more people are uncertain and collectivist, the more
confidence they need. In order to build trust, it is essential that interactive
partners often use informal and indirect relationships to build their networks.
Cultural difference creates a very uncertain environment for the worker and
feels precarious, stressed and fearful. Their main concern is to safeguard
jobs. In a range of culturally diverse
societies, employees in the target society are less motivated to participate in
the process of integration and acupuncture, and it is difficult to express
their views and make decisions freely.
This will lead to their withdrawal from the unification and
management of water, which will make it difficult to integrate the process of
social integration after unification and acupuncture and, finally, after bad
purchases. A negative relationship must therefore be expected between the
cultural and psychological security of the target society. A greater cultural
distance between two companies is the psychological safety of the workers in
the companies concerned.
Source: (Jha,2016)
Aguilera and Dencker (2004) are examined the impact of the national
culture on cross-border mergers and acquisitions and provided a framework for
compliance with the HRM strategy as above. Because national circumstances are
grouped in different dimensions such as culture (Hofstede, 1980), economic
(Zysman, 1983), the employment system (Marsden, 1999), economic organization
and control (Whitley, 1999) or public administrations (Aguilera and Jackson,
2003).
These factors affect cross-border mergers in different ways. These
factors are taken by the decision-maker prior to the decision of the
cross-border merger. Cross-cultural administrative surveys have shown that
behavioral patterns of individuality and openness vary from country to country
(Adler et al., 1986) and influence cross-border mergers and acquisitions
(Gersten et al., 1998).
Each worker detects mergers and acquisitions in different ways on the
basis of cognitive assessment. The information available is influenced by this
cognitive assessment. Psychologically safe workers are involved in socio-cultural
integration and help the organization achieve predefined objectives to be
combined and acquired. Visibility of
leadership has the potential to influence the psychological safety of targeted
workers by involving them during and after the merger and supply process. A
remote cultural environment can contribute to the growth and success of merging
firms by introducing different skills, resources, etc. But if it is not managed
properly, it can be disastrous.
References
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