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Read the case study entitled “Foreign Assignment” on pages 621-622 of your text.
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After the meeting with Sara, Tom Fried emailed you. In the email, he explained the situation and asked your advice. In your email reply back to Tom, address the following:
What obligations do you feel the bank has to ensure that its employees are not harmed, for instance, by having their chances for advancement limited by the social customs of a host country?
What international moral code, if any, is being violated by the Bank?
Has the bank made the correct decision by opting to follow the norms of the host country?
How would you recommend that Tom handle this particular situation?
What steps should the bank take to avoid and resolve situations similar to this in the future when employees are offended or harmed by host country practices?
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- What obligations do you feel the bank has to ensure that its employees are not harmed, for instance, by having their chances for advancement limited by the social customs of a host country?
Management in a multinational company involves developing a relationship between the external, societal culture and internal culture of the organization. This will enable the upholding of the relevant external values, as well as contributing new values such as productivity and innovation through modeling by the organization. Globalization of the economy challenges virtually all employees to become more internationally aware and adept. This case deals with managing cross cultures.
Lets think about culture first. Culture is the behaviors and beliefs characteristic of a particular social, ethnic, or age group. In anthropology, culture is the sum total of ways of living built up by a group of human beings and transmitted from one generation to another.
Organizational culture can loosely be defined as the shared assumptions, beliefs, and “normal behaviors” (norms) of a group of people in one such organization. These are powerful influences on the way people live and act, and what they define is “normal” and how to sanction those who are not “normal.” To a large degree, what we do is determined by our culture.
Mixing of societal and organizational cultures can produce interesting dynamics in multinational companies. For example French are more talkative and candid; Americans have more …
