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As globalization and interaction between cultures grows, the strain between management practices and cultural practices does also.
What is the answer to the problem? The solution is integration.
W. P. Carey Management Professor Anne Tsui says this:
"It's like being a guest in the home of a person who always takes off his shoes. You may not feel comfortable walking around in your bare feet, but simply keeping your shoes on -- disrespecting the other's culture -- is not an effective solution," observes . "So maybe you ask for a pair of slippers, which would be localizing your practices with the culture of your host. By respecting others' cultures we can integrate with them, without completely losing our own preferred way of doing things."
Tsui gives an example of Swedish company IKEA's entry into the U.S. market. It is said that IKEA values equality among employees even more than U.S. companies do. Meaning, in reference to job titles and descriptions: there aren't any.
"When IKEA opened its first store in Seattle, many recruits quit after a few months because there was a large gap between IKEA's values and the typical cultural orientations and expectations of U.S. employees," Tsui explained.
The problem was that they developed a high turnover rate which caused the company to restructure their hiring strategy. They started to hire for IKEA's values rather than qualifications and offered general job descriptions and simply let those who weren't interested opt out before they were even hired. Because there is such diversity of individuality in the U.S., they were able to get enough workers that could work within the company's values.
The result was that the turnover rate vastly decreased and the U.S. stores became very successful.
The bottom line is we have to look for a variety of ways to adapt to cultures that respect the local culture and adhere to the company's way of doing business. This is a big win for everybody.
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