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International/Cross Cultural Issues in Organizations

PSYC 8756

Walden University

Submitted by:Denise Brown, Yolanda Flood

Debra Franckowiak and Samuel Green



Introduction Cultural synergy is an important aspect of all

multinational and global organizations. Creating culturalsynergy is essential for advancing business operations

into other countries and across cultural boundaries.Identifying methods and creating solutions are a criticalprocess to creating cultural synergy. The exchange ofenergy and ideas between cultures is the first step to

effectively creating cultural synergy.



Introduction cont. This presentation will discuss the concepts of synergy

and diversity, identify the advantages and disadvantagesof diversity and synergy, how organizations can create

cultural synergy as well how to implement synergy withinmultinational and global organizations.

Additionally, this presentation will focus specifically on theMcDonald’s corporation and how they were able to

create, implement and benefit from cultural synergy.



What is Cultural Synergy? In order to define cultural synergy as it relates to

organizations, perhaps having a clear understanding ofwhat an organization is can be helpful. Harris (2004)

uses a unique phrasing that describes organizations,“organizations are energy exchange systems” (Harris,

2004, p. 359). This visual implies a dynamic process thatallows for the giving and receiving between two types of

organisms.



What is Cultural Synergy cont.? Assuming the organisms are people within a complex

culture or organization, then we can begin to see theimportance of the exchange that may occur between the

people.

The energy exchange can be applied in any setting. Itcan occur in nations, governments, families,associations, as well as organizations. If the exchange is

done poorly, it can often result in chaos or inhumanity. Ifthe exchange is done cooperatively, the result issomething called synergy.



What is Cultural Synergy cont.? The very powerful concept of synergy is derived from the

Greek word which means working together but synergy ismuch more than working together to achieve a mutual

goal. True, synergy is a cooperative or combined action,but it is also a byproduct of collaboration between diverseor disparate individuals collaborating in a common cause(Harris, 2004, p. 359).



What is Cultural Synergy cont.? The truly remarkable point of synergy is the power of the

reality that when ordinary people are allowed to freelyexchange opinions and argue points of view, amazingresults are possible (Cultural Synergy , 2006, p. 49)! It is

because of this result that synergy is vital to the successof global organizations.

Cultural synergy requires people working in multinationalorganizations to be culturally aware. Today’s global

marketplace forces diverse individuals to capitalize ontheir unique differences so that they can progresstogether as is illustrated in our next slides.



What is Diversity? The U. S. Department of Interior (2012) defines diversity

as a broadly used term to describe many demographicvariables that include but not limited to “race, religion,

color, gender, national origin, disability, sexualorientation, age, education, geographic origin, and skillcharacteristics”.

Organizations who embrace diversity can benefit from

the vast richness, strength and resilience in a culturallydiverse work force.



Diversity Continued There is still considerable debate over the importance of

diversity within the workplace.

When organization choose to recognize the cultural

differences of others, it can essentially increase theirability to benefit fully from diversity and aid in creatingcultural synergy.

Diversity when used effectively by management can be

an essential resource to increase productivity across allorganizational divisions.



Advantages of Diversity Diversity allows organizations to create social harmony

among culturally diverse work groups and can aide inincreasing intergroup relations (Crisp & Turner, 2011).

It is vital that organizations find value in diversity, whichcan increase the effectiveness of diversity.

Diversity allows organizations the ability to reduce coststhat can be associated with high turnover and job

satisfaction (Bell & Berry, 2007).



Advantages of Diversity cont. Organization become more attractive to potential

employees and having a diverse work force can alsoassist in employee retention.

Diversity also provides organizations with moreopportunities to branch into a variety of consumermarkets and increases creativity.

Organizations have more problem-solving ability and

system flexibility (Bell & Berry, 2007). When used correctly diversity can be used to challenge

many stereotypes that may exist among heterogeneouswork groups (Crisp & Turner, 2011).



Advantages of Diversity cont. In instances where stereotyping may exist, group

members should be encouraged and motivated toactively engage in resolving potential cultural conflicts.

Diversity can cause problems, but when used as aresource organizations can benefit greatly by creatingstrategic alliances, joint ventures, and global projectsacross all types of multinational business efforts.



Advantages of Diversity cont. Multinational organizations can benefit from diversity by

accepting new ideas and perspectives, new productdevelopment and see an increase in communication andcooperation across cultural boundaries (Adler &Gundersen, 2008).

Other advantages of diversity are culturally specific whichinclude creating a better understanding of localemployees, enhance their ability to market effectively to

host country customers, better understanding of thesocial, legal, economic and political culture of the hostcountry and increased effectiveness of working with localclients (Adler & Gundersen, 2008).



Disadvantages of Diversity The potential disadvantages of diversity are equally as

vast as the advantages.

Organizations can potentially experience high costs when

it comes to creating methods, models and solutions forcompany wide policies (Adler & Gundersen, 2008).

Cultural diversity can increase ambiguity, complexity andconfusion amongst culturally diverse work groups.



Additional Disadvantages Work groups can find it more difficult to reach

agreements as well as being able to agree on specificactions to take (Adler & Gundersen, 2008).

Culturally diverse work groups can experience difficulty inconverging ideas and therefore may encountermiscommunication.



Implementing Synergy Across

Cultural BoundariesIntegrating brand name and customer satisfaction

A visionary approach to marketing by integratingtraditional narrow focus with brand orientation to become

more of a market-driver than market-driven (Kumar,Scheer, & Kotler, 2000). This synergistic approach isespecially compatible with organization perceived to havestrong principles and values like McDonald’s (Kumar ,

Scheer, & Koller, 2000).



Benefits of Implementing

Cultural Synergy Corporate decision making, government policies,

corporate structuring improvement.

Building relationships between corporations and

government provides direction for strategies andselecting structure or restructure goals and governmentwill not have to intervene or respond to created riskyacquisitions when they are partnered throughout (Park &

Kim, 2008).



Synergy Risk & Responsibility Corporation responsibility can extend benefits that can

dramatically impact government system, family system,religious system, medical system, and eco system.

The larger the corporation and impact the greater theneed for those corporations to integrate principles of thatimprove and advance the local population whilemaintaining its global identity.



Synergy Risk & Responsibility

Feminist & Liberation Identifying women and producing more opportunities,

instead of more of the same workplace restrictions andposition dominance by males.

Integration of Liberation psychology and Feministpsychology strategies through corporations andacademic system. Researchers have reported thatamalgamating both psychologies participants in

programs were better appreciated supported rationalefor female inclusion.




Explicit & Implicit Diversity Issues Corporation must maintain awareness of historical

Asian/American relationships. Corporations risk usingresources that benefit them but are not responsible

stewards and can evoke attention from humanitarianorganization to be responsible and receptive to the healthand welfare of it citizens e.g.

Human rights

Access to treatment Masculinity

Freedom of Speech




Empowerment & Gender Equality

Gender transformative programs should capitalize on thesynergies between women’s empowerment and working

with men from gender equality (Blankenship et al., 2006;Gupta et al., 2008; Dworkin et al., 2009).



Improving Outcomes

Early development i.e. communication and partnering, inrelationships both government and indigenous residence,by corporate leadership can impact corporate cultureboth explicit and implicit systems producing synergy thatrespects human rights of all people, resources, and roles

inclusive of diversity (Pulerwitz et. al., 2010).



Negative Implications Through a process of anti-trust law enforcement and the

defunding of governmental services trans-industrialism

and synergy structurally supports decreasing diversity incommercial culture (Meehan, 2005).

Neo-conservatives



Further Negative Implications Meehan (2005) illuminates how corporate synergy works

to define creativity as more of the same and to saturateand resituate media venues with more of the same. It

also provides structural impediments to diversity in itssimplest form. But breaking synergy into fivecomponents i.e. recirculation, repackaging, reversion,recycling, and redeployment it is easy identify and

distinguish between practices in order to trace the typesof activities that proliferate thousands of individualproducts united under a single brand (Meehan, 2005).



Creating Cultural Synergy Some cultures are more synergistic in that they are more

cooperative while other cultures are more comfortable

with individualism, competition and conflict (Harris, 2004,p. 361). When behaviors are more unsynergistic oruncooperative, the result is often followed by isolation,conflict, and sometimes even violence (Harris, 2004, p.

361).



Creating Cultural Synergy cont. Because of this, it is important for global leaders to build

skills related to the development of synergy as well asconflict resolutions. Often times, additional training in

listening, empathy, role playing, trust, and team buildingcan also is valuable to building a more synergisticenvironment.

Global leaders who promote cultural synergy also

influence social change and are able to improve systemeffectiveness (Harris, 2004, p. 362). Adler (1997)describes a culturally synergist culture where the best ofeach culture is melded together without hurting the other.



Creating Cultural Synergy cont. The ability to respect other opinions as well as diversity

enables leaders to solve problems cooperatively. Thistype of environment is considered a high-synergy

organization where problem solving is conducted in athree step fashion.

The first step is to describe a situation or problem fromthe perspective of one’s own culture, then describe fromthe perspective of each of the cultures involved. The

second step is to understand what historic and culturalassumptions exist and use role reversal to identifysimilarities and differences between our own culturalassumptions and those of other cultures.



Creating Cultural Synergy cont.

Last, investigate many alternatives. Allow individuals fromall cultures involved in the problem to offer solutions. The

resolution should be compatible with all but not imitateany one cultures solution, thus allowing for a new patternin the new culture (Adler, 1997).



McDonald’s Cultural Synergy Synergy is the resolution of two or more cultural

organizations creating cohesive working conditions,

(Adler & Gunderson, 2008).

McDonald’s a worldwide conglomerate of global success

is credited to cultural synergy. The resolution includes arelationship and a respect for the leadership, international

strategies viewing high cities creating joint ventures thatbenefit established companies in foreign countries.



More on McDonald’s McDonald’s credits global success of Western success

with Eastern values, which is demonstrated by usinglocal concepts of produce in the menus, (Chang, Cheng

& Chien, 2011). Asian cuisine is vegetarian. Synergy was created when

McDonald’s prepared local dishes of the culture. The

introduction of multicultural management with

advancement of methodology research revealing ananalysis of cultural influence on McDonald’s corporation

for cross-cultural management was the resolution ofsynergy.



McDonald’s cont. A cultural clashing could occur if companies operated in

multi-cultural globalization of trade and manufactureinternational enterprises with different cultural

backgrounds using different value judgments (Chang,Cheng & Chien, 2011).

According to Bernstein’s Black Book (2011), in the

Chinese market alone, there are 1.3 billion mouths to

feed. Therefore, it is not surprising for Western cultureswanting to tap into that market.



McDonald’s cont. Bernstein’s Black Book (2011), reveals that other

Western companies also tap into this market, such as,KFC, Pizza Hut, Starbucks and Dunkin Donuts. The case

study revealed similarities in consumer demands. Doesthe food taste good? Is it attractively priced? Does thefood live up to high quality and is the food safe?

These questions were asked of three person households,

which is the norm for China to assist in strategizing theproduction needs of this culture. The population increaseraises the potential for increased profit for future outlook.



McDonald’s cont. Susnienė (2008), denotes the organization as a joining of

multiple constituencies and interests of stakeholders.Researchers are aware that stakeholders can be internal

or external. It is observed that organizations with thesame type of stakeholders share common risks andexperience the same ups and downs in operating acompany. Identifying these risks allows for synergy to be

created when necessary. Susnienė (2008) also revealedobservation of organizational relationships withstakeholders who demonstrated their capacity of wealth.



McDonald’s cont. This wealth is created for stakeholders such as

employees who need good working conditions and

increased career opportunities.

It is also created for customers by way of products andservice benefits that exceed in greater value than theprice paid as well as for investors, communities and

governments. These stakeholders are viewed asintangible assets to an organization.



McDonald’s cont. Talented people creating and launching new and

improved products are viewed as intangible assets,

(Susnienė, 2008). The relationships of stakeholders are asource of opportunity and competitive advantage. Thisrecognition is essential to creating synergy. Therelationship can increase the stability in hard economic

down turns.



McDonald’s cont. McDonald’s is said to have gone back to the basics of

placing the customer first, and by doing so have allowedthe menu to expand and be inclusive of providing the

best experience for customers (Esteban, Lien & Young,2008).

The study revealed that when McDonald’s started taking

the transition of greater emphasis on healthier cuisine

more seriously and increased the markets shifting intaste, the slight decline in profits rose.



McDonald’s cont. The fast food industry (Esteban, Lien & Young, 2008)

was not the only industry affected by cultural synergy.

Apple computers eliminated the silo mentality within itsResearch and Development (R&D) then consolidatedR&D functions into one product development groupanswering only to one manager, as they then focused on

better customer service; saw a change in the bottom lineprofits also.



McDonald’s cont. Walt Disney nurtured and leverage corporate synergy by

transforming the company into the largest corporateempire.

The new CEO Eisner, centralized corporate functions,such as, marketing, wider view of strategic planningusing more input from senior management and pittingfinancial forces against each other while providing

necessary financial support to create this competitiveculture, (Esteban, Lien & Young, 2008).



Conclusion Cultural synergy is an approach to problem solving

between two or more cultures. According to Adler &

Gundersen (2008), there are three steps of culturalsynergy; cross-cultural description, cross-culturalinterpretation, and cultural creativity. The process ofthese steps creates synergy cooperation so that there is

no chaos or inhumanity between the organizations.



Conclusion cont. As cultural synergy is defined in the presentation, the

collaboration between diverse or different individualsparticipating in a common cause serves bothorganizations (Harris, 2004, p. 359).

Synergy allows the creation of two types of assessments.The first is a social impact assessment and the second isan impact assessment which allows an organization tomeasure the engagement of the stakeholders. The

impact assessment was produced in both Asian andAmerican organizations.



Conclusion cont. As this presentation highlighted, synergy allows diverse

groups of individuals the opportunity to becomesomething greater than what currently exists. The

concept was highlighted in our presentation with theMcDonald’s case study. As was illustrated, both the

Asian and American communities not only embraced thedifferences between the two cultures, but were also able

to present ideas that the McDonald’s organizationimplemented.



Conclusion cont. This collaboration allowed for a win-win scenario which

demonstrated the amazing power of a synergisticenvironment! Both cultures learned from one another

through collaboration among multiple stakeholders thatwere not only diverse in thought processes but also incultural background. As Susnienė (2008) points out, therelationships created by stakeholder interests from both

organizations, became the catalyst for cultural synergy.



Conclusion cont. As mentioned in previous slides, a synergistic culturerespects all forms of diversity. In order for anorganization to be able to create a culture of synergy, the

leadership must be able to study and understand theculture they personally came from. Once this isaccomplished, the leader will discover that having diverseopinions and integrating diversity in the organization will

assist others in discovering stereotypes that turn out tobe myths.



Conclusion cont. Additionally, leaders find that in multinational

organizations, these new found relationships allows foran immeasurable opportunity to become creative.

This creativity often leads to new inventions and productdevelopment. This type of collaboration not only benefitsthe organization, but can also have lasting effects uponthe political environment, the economic environment, and

the legal environments in the global marketplace.



Conclusion cont. Although there are many challenges in relation to

creating a synergistic culture, McDonald’s corporation

illustrates the extreme advantage of working in amulticultural environment. Even though McDonalds

initially did not know that the Chinese managebusinesses based on trust, shared entrepreneurialsuccess, and shared market responsiveness,McDonald’s chose to learn this differentiating factor and

they incorporated this philosophy into their Asian market.The cooperation between the East and West in thisexample is the perfect illustration of synergy in amultinational corporation!



References Adler, N. J., & Gundersen, A. (2008). International dimensions of

organizational behavior. (5th ed.). Mason, OH: Thomson.

Bell, M. P., & Berry, D. P. (2007). Viewing diversity through different

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Bernstein Black Book (2011). 1.3 Billion mouths to feed: The outlook forrestaurants in China. 1-130.

Blankenship, K., M, Friedman, S., R., Dworkin, S., & Mantell, J., E. (2006).Structural interventions: concepts, challenges, and opportunities forresearch, J Urban Health, 83(1), 59-72.



References cont. Crisp, R. J., & Turner, R. N. (2010). Cognitive adaptation to the experience

of social and cultural diversity. Psychological Bulletin, US: AmericanPsychological Association. DOI: 10.103/a0021840.

Dworkin, S.,L., Sutherlan, C., Gambou, S., Moalla, K., & Kapoor, A. (2009).

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References cont. Gupta, G., R., Parkhurst, J., Ogen, J., A., Aggleton, P., & Mahal, A.(2008).

Structural Approaches to HIV Prevention, Lancet, 372(9640), 764-775.

Harris, P. R. (2004). European leadership in cultural synergy. European

Business Review , 16(4), 358-380. doi:10.1108/09555340410546991.

Jarusiewicz, B. (2000). Spirituality and addition: Relationship to recoveryand relapse, Alcoholism Treatment Quarterly, 18, 99-10

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Academy of Management Journal. 52 (3), 581-598.



References cont. Klein, K. M., & Wang, M. (2010). Deep level diversity and leadership.American Psychologist. 65(9), 932-934. DOI: 10.1037/a0021355.

Kumar, N., Scheer, L., & Koller, P. (2000). From market driven to market

driving. European Management Journal, 18 (2), 129-142.

Moane, G. (2010). Sociopolitical development and political activism:Synergies between feminist and liberation psychology sociopoliticaldevelopment. Psychology of Women Quarterly, 34(4), 521-529,DOI:10.1111/j.147-6402.2020.01601.x.

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References cont. Park, C., & Kim, S. (2008). Corporate governance, regulatory changes, and

corporate restructuring in Korea. Journal of World Business, 43 (1), 66-84.

Pulerwitz, J., Michaelis, A., Verma, R., Weiss, E. (2010). Addressing Gender

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Susnienė, D. (2008). Synergy and strategic value of organization -stakeholder relationships. Economics & Management , 842-847.

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References cont. U. S. Department of the Interior. (2012). Retrieved from

http://www.doi.gov/pmb/eeo/what-is-diversity.cfm.

Weis, M. (2010). Integrated and Holistic Treatment Approach to PTSD and

SUD; A Synergy, Journal of Addiction & Offender Counseling, 31(1), 25-37

Ying-Chang, C., Wen Cheng, W., & Ying Chien, C. (2011). Infiltration of themulticultural awareness: multinational enterprise strategy management.International Journal Of Business & Management, 6 (2), 72-76.

http://www.doi.gov/pmb/eeo/what-is-diversity.cfm






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