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Executive Summary
Globalization is a fact of life for forward-looking companies, one that will likely
transform business for decades to come. Firms entering the global sphere are caught
up in high-stakes foreign investment and face fierce competition for low-cost labor amid
worldwide economic and market forces. As they revamp their workforce management
strategies, leaders in business recognize that they must adopt a global mindset to
remain competitive in the world's marketplace.
Globally scattered workforces demand a new skill set for managers, CEOs and
HR professionals, and competition for such talent is heating up. Especially critical is the
need for leaders with international business skills who can also work with diverse
cultures and convey knowledge across vast geographic distances. Sensitivity to cultural
and political differences is proving to be a key factor in the management of outsourced
operations and corporate mergers.
As global activity grows, analysts say, the number of international assignments
will continue to expand as well. Notable changes in profiles of expatriates - and the
work/life issues they generate - are also evident. A 2004 GMAC relocation survey
reports that the share of female assignees to the overall expatriate population has
grown gradually from 10% to 18% over the last decade, while the portion of married
male expats has fallen from 64% to 55%. Nontraditional family groupings are occurring
with greater frequency, as are dual-income families, who may require company support
for a working spouse.>Constructing equitable pay and compensation schemes for
globally diverse workers moving from one country to another is one of many dilemmas
companies face trying to balance home-company business policies with local workforce
and market demands.
Globally scattered operations call for heightened effectiveness in overall
communication and better alignment of local HR functions with corporate headquarters.
But other issues, such as persistent labor/management conflicts, suggest that the
interests of local workers and global business practices will likely continue to collide.

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What is a perfect problem for any manager in this era of globalization? In todays
competitive environment, business wars do not determine whos right. It determines
who will survive, one needs to have a workforce which is dedicated, talented and
adequately motivated to continuously contribute, i.e. identify the right people. Many
times the managers do get the right people they fail to successfully allocate them to the
right job or the environment.
The report gives an overview of the existing problem in managing practices with
special emphasis on recruiting the people who builds up a strong workforce in the
process of reaching a goal. The entire report deals with the core aspects of managing
people in an organization due to a strong competitive edge faced by the companies as a
result of globalization . . .
The central aspect of this paper is managing global workforce where certain key
elements come in the scenario as effective approach of communication in an
organization with a diversified workforce and its relative value to performance. The
central above two points subdivides further into conflict and the problem solving ability
of one of the major issues today of cross cultures and teams .

Key Words: Effective Communication; Performance management; Conflicts; Global

workforce; Globalization; Diverse workforce.

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Introduction
Manpower is the most valued asset of an organization where the organization
aims to build up a talented than skilled workforce to reach the firm value or goal of an
organization. Higher competitive edge due to globalization makes up a diversified
workforce which is the key of any firms success that leads to turn the tide towards an
ailing business organization.
Managing a global workforce is now a major issue as cross cultural biases and
team conflicts are not new sources in the chapter. Thus to maintain utmost clarity, clear
ambiguity and well co-ordination among teams communication system plays a pivotal
role in all respects.

1.1 Communicating Effectively across cultures The purpose of communication is

to convey ones thoughts and ideas clear to another . In an effective communication
transaction both the sender and the receiver perceive the message in the same
way . It is particularly important to communicate effectively in a business
environment : failure to do so can have costly and potentially disastrous results .
Communication skills are thus a key contributor to the success of an organization .
When communication does not embody the correct opinions and ideas it becomes a
barrier to achieve an organizational goal . Being aware of the broad ranging
differences in the interactions patterns of a given geography is essential for effective
communication across cultures .
1.2 Cultural Diversity Each country and region has its own set of cultural and
language rules . English spoken by the indigenous population of our country will
often be of different style from that spoken elsewhere . Equally there are significant
cultural differences . Giving business cards is perceived as a significant event in
Japan . Japanese professionals consider their business cards as to be a valuable
possession and thus proffer them respectfully with an inclined head . Punctuality is

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usually important with Europeans , although there are variances within Europe
itself , but it is less critical in Asian markets .
There are almost endless examples of cultural diversity . Being
oblivious to communication and cultural differences may lead to unintentional insult .
It is therefore important that one should respect the style and difference in
communication patterns when working with those from other geographies and
cultures .
1.3 Effective Communication - Communication is effective when it is accurate and
concise and is correctly delivered in the cultural context of the recipient . There are
many key points to be considered for effective communication in a cross cultural
environment as : knowing the cultural values and background of a person ; speaking
clearly at a measured pace ; space for expression etc .
1.4 Advantages of learning other cultures An in-depth understanding of the cultural
values, business practices and business values of other countries is vital for
effective communication. Appropriate study will ensure that one becomes aware of
why people from different cultures think the way they do.
The Model given below shows the Corporate / Business Communication model
utilized with respect to the transactions in the market between the organization and
the consumers :

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Doing business in another geography is not just about language and law . Proper
awareness of local culture is vital to personal and professional success . The place
should be explored where the business is planned , understand its values , business
practices , etiquettes .
1.5 Problem solving process in global organization - In a search for more efficient
yet effective ways of solving combinatorial complex problems such as job shop
scheduling, we move towards opportunistic approaches that attempt to exploit the
structure of a given problem. Rather than adhere to a single problem-solving plan,
such approaches are characterized by almost continual surveillance of the current
problem-solving state to possibly modify plans so that activity is consistently directed
toward those actions that currently seem most promising. Opportunistic behavior
may occur in problem decomposition down to selective application of scheduling
heuristics. We developed and performed limited testing of a scheduling system,
called OPIS 0, that exhibits such behavior to some extent. The results are

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encouraging when compared to ISIS and a dispatching system. It is believed that
such opportunistic views of scheduling would lead to systems that allow more
flexibility in terms of designing scheduling procedures and supporting the scheduling
function.

2.0 Increasing Diversity as innovative process of recruitment Recruiting in

todays global scenario is not about hiring skilled people, instead it all about hiring the
most talented people building up the best skilled workforce for an organizations
corporate sustainability. Thus while hiring manpower an organization should increase
its migration policies so that there is diversified team from around the world with the
best talent possible. Thus, diversity issues are now much more pervasive. Corporate
success, profit and growth depend more on the effective management of a diverse
workforce.

2.1 Managing Diversity (Problem solving technique) Diversity is defined all the
ways in which individuals differ, both on a personal basis and in terms of organizationrelated characteristics. These characteristics are broadly categorized into observable
and unobservable characteristics. Observable and unobservable characteristics include
race, ethnicity, gender, age, tenure, functional background, sexual orientation, socio-

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economic status, education, physical and mental ability, values, and attitudes (see
figure below). The recognition of the complexities of diversity as a multivariate concept
forms part of the agenda for better understanding the complexity of productively
managing diversity at work .

Defining Productive Diversity Productive diversity refers to the business

advantages that emerge from the employment of many different people . Such
advantages are labeled the diversity dividend.
This comprises of :
(a) Expanded global opportunities

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(b) Improved B2B Relations
(c) Enhanced creativity and innovation
(d) Advanced communication
(e) Superior teamwork skills
(f) Quality customer service
(g) Reduces workplace conflict
(h) Lower absenteeism and turnover.
2.2 - The Hierarchical Action in managing global manpower Senior management
engagement

diversity

which

is

implemented

as

action

area

one

Engaging Senior Managers . For overall organizational credibility

Top Level Management Action

Area
Top
Level

It is crucial for building necessary for cross cultural capabilities for global expansion
Level
success . Senior Middle
managers
devise global business strategy and manage interactions
Mngt

with business partners , customers , distributors , suppliers and government agents

Lower environments
Level Management
from many cultural
.They need cross cultural skills to facilitate such

interactions . Cross cultural skills are developed through organizational cultures that
value diversity and engage sound diversity management strategies.
2.3 Process of action in global recruitment An organizational culture that values
diversity will facilitate internal promotion and

external recruitment of diverse top

management teams with strong cultural teams .Such a culture will also create amongst
relatively homogenous top management teams , an openness to difference . Such

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teams are likely to navigate cultural complexity in global expansion and be more
receptive to external advice to navigate complexity .
Significance Building cross cultural capabilities for going global is
particularly imporatnt for Expatriate managers posted overseas in culturally complex
environments . The business case for reaping considering as the above example can be
found in Expatriate Management : A Business Model for Diversity management .
2.4 Building up a Team (Diversity) The development of cross-cultural capabilities
for going global is reliant on the organizations ability to attract , retain and motivate a
high quality and diverse pool of employees . Global business is highly competitve and
competitve advantage increasingly resides within human capital .

By attracting a

culturally diverse pool of applicants , organizations have the benefit of recruitng

employees with many cross-sultural capabilities . Employees will have experienceof
difernet languages and cultures as welll as experience working with and relating to
others who come from different background . Such experience facilitates an
organizational culture that values diversity and is well placed to reap the dividends from
leveraging workforce diversity .
2.5 Why Global Diversity ? -

Diverse teams have been shown to repeatedly

outperform homogenous teams . And , whilst diverse teams often encounter early-stage
communication and conflict barriers , gibven time , they produce higher quality solutions
, better decision , innovative ideas . Considerable research has examined whether
diversity in team or group composition improves performace , generally finding that
when groups overcome the early-stage hurdles information , ideas and perspectives are
shared more freely generating higher qulaity solutions and innovation .
A study by Ancona(1990) demonstarted that diversity in team composition might
slow down progress in the short-term due to conflict and communication problems , but
that diversity fostered speed and innovation over the whole development cycle . Cox
and Blakes 1991 study of culturally heterogenous groups provided evidence that
diversity outperforms homogeneity . Kirchmeyer and Cohen (1992) identified the
imporatnce of constructive conflict that is nurtured in well-managed diverse teams .

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Engaging in constructive conflict meant that the validity and significance of decesions
was enhanced , and those from minority ethnic groups participated more freely in
discussions .
3.0 Issue of Conflict - Cultures are more than language, dress, and food customs.
Cultural groups may share race, ethnicity, or nationality, but they also arise from
cleavages of generation, socioeconomic class, sexual orientation, ability and disability,
political and religious affiliation, language, and gender -- to name only a few. Culture is
an essential part of conflict and conflict resolution. Cultures are like underground rivers
that run through our lives and relationships, giving us messages that shape our
perceptions, attributions, judgments, and ideas of self and other. Though cultures are
powerful, they are often unconscious, influencing conflict and attempts to resolve
conflict in imperceptible ways.
3.1 Working of cultures and arise of conflict - Cultures are a shifting, dynamic set
of starting points that orient us in particular ways and away from other directions Each
of us belongs to multiple cultures that give us messages about what is normal,
appropriate, and expected. When others do not meet our expectations, it is often a cue
that our cultural expectations are different. We may mistake differences between others
and us for evidence of bad faith or lack of common sense on the part of others, not
realizing that common sense is also cultural. What is common to one group may seem
strange, counterintuitive, or wrong to another . Writing about or working across cultures
is complicated, but not impossible. Here are some complications in working with cultural
dimensions of conflict, and the implications that flow from them:
Characteristics of Culture :(a) Culture is multi-layered -- what you see on the surface may mask differences below
the surface.
(b) Culture is elastic -- knowing the cultural norms of a given group do not predict the
behavior of a member of that group, who may not conform to norms for individual or
contextual reasons.

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(c) Culture is largely below the surface, influencing identities and meaning-

making.

3.2 Arise of Conflict w.r.t. Culture - Cultures are embedded in every conflict
because conflicts arise in human relationships. Whether a conflict exists at all is a
cultural question. Culture is always a factor in conflict, whether it plays a central role or
influences it subtly and gently. For any conflict that touches us where it matters, where
we make meaning and hold our identities, there is always a cultural component. In
organizations, conflicts arising from different disciplinary cultures escalate tensions
between co-workers, creating strained or inaccurate communication and stressed
relationships. Culture permeates conflict no matter what -- sometimes pushing forth with
intensity, other times quietly snaking along, hardly announcing its presence until
surprised people nearly stumble on it. Culture is inextricable from conflict, though it does
not cause it.
Though culture is intertwined with conflict, some
approaches to conflict resolution minimize cultural issues and influences. Since culture
is like an iceberg -- largely submerged -- it is important to include it in our analyses and
interventions. Icebergs unacknowledged can be dangerous, and it is impossible to make
choices about them if we don't know their size or place. Acknowledging culture and
bringing cultural fluency to conflicts can help all kinds of people make more intentional,
adaptive choices.
3.3 Conflict as a source of Innovation The notion of conflict is essential to the
innovation process. In a 1997 Harvard Business Review article, Leonard and Straus
popularized the term creative abrasion. Innovation, the authors argue, breeds in a
space where different ideas, perceptions, and ways of processing and judging
information collide. The value of this diversity is the way in which these ideas,
perceptions and ways of processing and judging information grate against each other to
produce new ways of thinking and doing and therefore innovation.

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3.4 Stages of Globalization ; a diversity model -

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4.0 Performance : Applying Global diversity in Performance management system Effective performance management systems are difficult to design. Our experience
demonstrates that even when HR has developed a best-practice system, there is often
a breakdown in implementation at line management level . The most prevalent reasons
are:
1) Line managers are not held accountable and conduct inadequate evaluations,
inconsistently apply the development process or just ignore it.
2) The organization values and rewards short-term, bottom-line results over good
people management. The greater this emphasis, the easier it is for managers to
overlook investing in people. Ultimately though, achieving good results is impacted
by employees' ability and motivation to perform well.
3) Line managers often don't have the skills to perform essential evaluative and
developmental tasks.

Obviously it's impossible to achieve excellent performance management without

these basic components. Less obvious is that without them an informal system takes
over wherein managers' personal preferences and relationships dictate business
decisions such as who receives development feedback, mentoring, sponsorship and
exposure.
Because relationships tend to develop between people who are alike, an informal
system is particularly detrimental in a diverse workplace and some employees will be
disproportionately harmed by inherent bias. While this might not yet be of primary
concern to most organizational leaders, our research shows that nearly all developed
countries will have significantly more diverse workforces in the next 5-15 years.

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5.0 The Concept of Cross Training for better management of diversified

workforce - Cross training also known as conditioning refers to training in different
ways to improve overall performance. It takes advantage of the particular effectiveness
of each training method, while at the same time attempting to neglect the shortcomings
of that method by combining it with other methods that address its weaknesses .
5.1 Cross Training in Business Operations - Cross training in operations involves
training employees to engage in quality control measures. Employees are trained in
tangent job functions to increase oversight in ways that are impossible through
management interactions with workers alone.
5.2-Cross training Advantages

Cross-training helps patrons in the long run, as employees are empowered to

answer questions about the entire organization.

Cross-training requires the staff to re-evaluate the reasons and methods for
accomplishing their work; inefficient methods, outdated techniques and
bureaucratic drift are challenged, if not eliminated.

Cross-training raises an awareness of what other departments do.

Routine scheduling is enhanced with the ability to move staff about the
"Operation".

Better coverage, increased flexibility and ability to cope with unexpected

absences, emergencies, illness, etc.

Cross-training can increase the "employability" of staff who have the opportunity
to train in areas they were not originally hired for.

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6.0 Change as an agent of globalization: Reaction of Different Cultures Responding to tensions and violence between ethnic groups around the world, a
growing number of non-government organizations have developed innovative programs
and approaches to help resolve conflicts, prevent violence, and promote more
cooperative relationships between groups. Each intervention program identifies and
interprets the causes and conditions leading to ethnic conflicts, and sets a unique
course that, if followed, should result in powerful change to resolve these conflicts. The
diverse approaches they use often seek to address both diffuse tensions and specific
conflicts, make short- and long-term changes, and influence those who directly
participate in the intervention as well as the larger conflict situation. Drawn from the
literature on program evaluation, a theory of change refers to the causal processes
through which change comes about as a result of a program's strategies and action. It
relates to how practitioners believe individual, intergroup, and social/ systemic change
happens and how, specifically, their actions will produce positive
A theory of change for a conflict management initiative working on similar issues
in the same region might focus on creating new forums that bring influential
representatives of stakeholders together to explore a new analysis of the problem,
develop cooperative problem-solving skills, and create joint action plans. These new
forums, skills, partnerships, and joint action planning interrupt old, habituated patterns of
conflictual interaction between individuals and groups and offer ongoing mechanisms
for institutional and policy change.

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7.0 Conclusion
Diverse teams have been shown to repeatedly outperform homogenous teams.
And whilst diverse teams often encounter early- stage communication and conflict
barriers, given time they produce higher quality solutions, better decision and innovative
ideas.
Considerable research has examined whether diversity in team or group
composition improves performance, generally finding that when groups overcome the
early-stage hurdles, information, ideas and perspectives are shared more freely
generating higher quality solutions and innovation.
McGraths 1984 study also showed that diversity (informational) led to alternative
decision making perspectives, resulting in higher performance, where early stage
conflict and communication problems were resolved. This idea found support in a study
bi OReilly, William and Barsade in 1997, who found higher quality solutions took time to
emerge due to early stage difficulties in communication and the development of team
routines, demonstrating the importance of appropriate, early stage, team training and
coaching.
Diverse teams need time to develop interdependence and trust which provide a
strong foundation for communication, constructive conflict, risk-taking and creativity. It is
important that appropriate time and training is provided for diverse teams to overcome
early-stage problems, thereby allowing firms to harness the diversity dividend.