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Multicultural organisations

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Multicultural organisations

As the pace of technology and globalisation increases, many firms are considering exploiting oversea markets. Firms are developing a more in-depth global focus. Effective human resource management has emerged as an essential factor in the success of businesses in international markets. However, proper human resources management is one of the most challenging factors affecting firms operating in global markets. People remain key to the success of any organisation. The success of a company is directly linked to the way it organises its human resources. Motivation is the main driving force behind motivation in a company. According to Lee and Raschke (2016), motivation is an internal state, which stimulates individuals to attain various goals. In the organisation setup, the primary purpose of motivation is to encourage the employees to perform work-related responsibilities effectively and efficiently.

Apart from motivation, training has also emerged as one of the important factors influencing the performance of employees. Training is necessary for helping multinational employees develop a global mindset. The issues affecting multinational organisations are not the same as those faced by local companies. For instance, a multinational organisation in New Zealand may have a complex supply chain that involves various countries and regions. An employee working in the company’s supply chain department would need training on how to handle various supply chain issues. In the current period of the Covid-19 pandemic, employees require training on how to handle various supply chain and organisational issues. Baron and Agustina (2019) contend that training and development should be a continuous process in the organisation. Training and development can be a strategy to motivate the workforce. This paper explores the training and motivation challenges faced by multinational organisations.

Theories of Motivation

Various theories offer explanations of the concept of employee motivation in an organisation. Abraham Maslow developed a motivational theory human resource managers can use to motivate the workforce. According to Abraham Maslow, motivation if employees in an organisation depend on various factors that affect their level of satisfaction (Lata, 2017). Based on these factors, Maslow developed a five-stage theory of the hierarchy of needs that place the needs of employees in categories based on priority. At the bottom level are the physiological needs. These needs include basic things such as food, shelter and clothing. Individuals who lack basic needs will not be able to perform per the expectation. The satisfaction of physiological needs leads to safety and security needs. Employees want to work in a safe and secure environment. They want physical protection. This level of needs is especially important for employees working in volatile areas, such as those facing political instability and other forms of insecurities. At the third level are social needs. Employees are social beings. They want to associate with others. The organisation needs to provide a suitable environment that enables employees to build strong relationships and collaborate. Esteem needs come after the social needs. Maslow noted that organisations should create an environment that promotes the esteem of the employees. Such efforts include acknowledgement of their hard work, rewarding and rewarding their good performance. Lastly, employees are driven by the need for self-actualisation. They want to leave a legacy in their workplace, career and professional life. Human resource management needs to create a favourable environment that promotes the achievement of these needs.

Apart from Maslow’s hierarchy of needs, the expectancy theory also offers a reasonable explanation behind the motivation of employees in the workplace. According to Lata (2017), this theory alludes that the behaviours of individuals in an organisation are a product of certain expectations. The employees will perform better when they expect a better reward for their performance. Lastly, Herzberg’s two-factor theory categorised the factors that make employees motivated. This theory is also referred to as the motivator- hygiene theory. Herzberg noted that there are five aspects of the workplace that motivate the employees. These factors include recognition, achievement, responsibility, the job itself and advancement (Lata, 2017). Herzberg identified management approach, institutional politics, pay, supervision and relationship in the workplace as likely factors that demotivate workers. Lata (2017) observes that organisations need to constantly use the hierarchy of needs and Herzberg theory to identify opportunities for personal achievement, enrichment, and recognition among the employees to motivate them.

Training Challenges Faced By Multinational Organization

Research shows multinational organisations faced significant challenges in their efforts to train and motivate employees. Linguistic diversity is the first major challenge faced by these organisations. In New New Zealand, English and Maori are the major languages spoken in the country. The language difference forces organisations to reorganise their training materials to fit the locals. Cultural diversity is another factor affecting training in multinational organisations. According to Chavis (2019), cultural differences make it hard for organisations to understand the training needs and motivation of employees. The training needs and motivation in New Zealand workers May differ from workers in the United States or the United Kingdom. According to Chavis (2019), trainers need to apply social learning approaches and behavioural techniques to ensure the training fits the local context. The high cost of training is another challenge faced by multinational organisations. Chavis (2019) notes that it is also costly to train a global workforce. The high cost could be due to the different training needs of employees in various countries. The training cost also carries between nations. For instance, the training cost in New Zealand is not the same as in the United States. Organisations often make a mistake by allocating insufficient resources to cross- border training. Differences in time zones is another huge challenge faced by multinational organisations. This challenge is particularly significant in organisations that use Webinar and collaborative training. Such organisations often reschedule their training to ensure it is conducted in times that make sense for all the locations.

Motivation Challenges Faced By Multinational Organization

Cultural difference is the major reason why human resource managers in multinational organisations experience difficulties motivating employees. According to Oh, Lee and Oh (2018), multinational organisations operating in different regions experience a huge cultural gap. For instance, the organisational culture in New Zealand may not be the same as the culture in South America, South Africa or the United Kingdom. Employees from various countries have different beliefs, behaviours, norms and value systems. What motivates an employee in New Zealand is not the same as what motivates a worker in the United States of America. It is always difficult for the human resource manager to understand the specific factors that motivate the employees in such an environment. Oh, Lee and Oh (2018) point out that differences in needs are another factor affecting motivation in a multinational organisation. Workers from various countries have different needs. A worker in the global south may be concerned with the physiological needs, which is the first level of needs in the Maslow’s hierarchy while a worker in the global north is more concerned with other needs. These differences make it hard for the human resource team to develop a unified strategy for the workforce.

Conclusion and Recommendations

The success of multinational organisations depends on their ability to manage a diverse workforce. Multinational organisations need to have an innovative talent pool with the ability to handle problems in the global business environment. While workforce diversity increases the level of knowledge and skills in the workplace, it is also a huge challenge to multinational organisations. Cultural and linguistic diversity affects training and motivation of employees. The training needs and motivation factors differ among workers from various countries and regions. With a mixture of employees from various backgrounds, age, lifestyles, global human resource managers should have a diagnostic capacity to identify the values and the specific factors that motivate employees in the workplace. The focus of the organisation should be to nurture HR managers who are sensitive to interpersonal, intrapersonal and collective perspectives. HR managers need to be creative and focus on promoting diversity. While HR managers need to act local, they should not forget to think global and understand the various factors affecting the workforce. This report recommends the following:

Multicultural organisations should focus on developing a culturally competent workforce. Culturally competent employees have necessary behaviours, attitude and workforce to work in a multicultural workforce. Training and motivating this team is easier than dealing with a culturally incompetent team.

HR management in multicultural organisations should use Maslow’s hierarchy of needs and two-factor theory to identify motivation opportunities among multicultural workers and develop effective, specific approaches to motivate workers from different cultural backgrounds.

Training should be a continuous process in multicultural organisations. When done properly, it can motivate the employees and encourage better performance. The training addresses the self-actualisation need, which is the topmost in the Maslow’s hierarchy. It allows them to explore their abilities and growth professionally. ……

 

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