The scenarios of this report determines that international human resource manager of Vodafone is asked to led, trained and develop a workforce that can assist in setting up business operation at global level. In this, regard it is required to analyse challenges and opportunities of leading a workforce within globalised economy.
- Identify the role of culture in international business practices of Vodafone.
- Evaluate key organisational and national cultural characteristics to manage successfully in diverse culture.
- Analyse the opportunities and challenges for Vodafone in order to manage a diverse team at global level.
- Determine different factors that can contribute to the concept of globalized economy by demonstrating an awareness of ethical policies for Vodafone.
- Evaluate the practical application of cultural awareness by identifying team working skills.
There are many businesses which are operating their business activities in globalised economy. International management refers to the concept which includes activities regarding effective management of business at different locations effectively to accomplish objectives. For effective management of international businesses required to have additional skills and knowledge which are beyond normal expertise such as understanding about different business laws, local custom laws, familiar with macro environmental factors etc. Vodafone is multinational organisation which has its business operations in Europe, African South America and many more countries (Ageron, Gunasekaran and Spalanzani, 2012).
In the present report explain about the opportunities and challenges which are faced regarding leading of workforce in globalised economy, Impact of culture on HRM practices, leadership skills and team building. Also, analyse the effect of culture upon organisation to become responsible corporate citizen.
Vodafone is British multinational organisation which was headquartered in London. It provides the telecommunication services in major countries. The major countries where they have the business function includes Asia, Africa, Europe and South America. The different kind of products which are served by Vodafone for satisfaction of the different requirements of customer includes Fixed line telephone, Broad band, Digital television, Internet television, IPTV, mobile phone etc. Total number of countries in which Vodafone have their own networks are 26 and also having large number of partner networks to provide the additional services in more than 50 countries (Weber and Tarba, 2014.). Firstly, this organisation is listed in London Stock exchange and after that in FTSE 100 Index. From 2016, it is observed that Vodafone has total market capitalisation of £52.5 billion.
Due to operating their networks in globalised economy many challenges and opportunities are arise which have both positive and negative impact upon their action. It is the obligation of the administration of organisation is to build innovative strategies which helps to create value and contributes in achievement of organization objectives. There are various factors are present in business environment which are not control of the management and having significant influence over working of Vodafone. Such factors are known as political, economical, social, technological, legal and environmental which are different in all nations as the conditions which are present there. Vodafone is much influenced because having operations in almost all of the countries. It is difficult to analyse the factors and build different strategies which impacts their working efficiency adversely. Another aspect which arise due to having globalised business is about cultural differences (Wilton, 2016). It has direct impact upon the various aspects of organisation like HR practices and policies, leadership skills, Setting up of effective global team and building of organisation as ethical and responsible citizenship. Employees are main asset of organisation upon which structure of organisation is totally depends. The employees coming from various cultures have different beliefs, attitudes, values, norms and ethics which impacts the coordination and communication within the organisation adversely. It is an obligation upon manager is to identify the cultural differences and formulate common belief, values and norms which are required to adhere by all employees whether come from any culture or nation. This will provides the opportunity is to perform functions in effective manner to accomplish goals as per the standards which are framed at the beginning of year (Austin and Seitanidi, 2012).
1. Challenges faced while leading workforce in globalised economy
There are many challenges are arose due to having the operation's in many countries. The main reason behind arrival of such issues and problems is due to cultural differences. Large workforce is required to effectively conduct the business activities. In the present report, Vodafone has huge amount of workforce which are belong to various cultures having different ethics, values, norms which impacts the individuals and team performance. It is an obligation upon the manager is to adopt the effective approaches which align the interest of employees towards organisation activities and improves their working passion. In this regard, need to build norms and values which are applied to all the employees and bring consistency in their behaviour. The different type of challenges which are faced are defined below:
Communication gaps: one of the biggest challenge which is faced while leading the huge workforce in multinational organisation is language differences (Tie and Tan, 2013). This will happen because they are coming from different regions and countries. It is difficult for the manager of organisation is convey their messages in the right sense to the employees in effective period of time (Schaltegger, Burritt and Petersen, 2017). It impacts the capability of management is about the distribution of roles and responsibilities among the employees in effective manner which lowers down their productivity and quality of services.
High amount of Resistance: The employees come from different regions and countries resist to accept the changes in their daily routine life and behaviour. Due to which conflicts are arise within the organisation between the employees and management. This will have negative impact upon the brand image and improves the ratio of staff turnover.
Lack of interaction: It is observed that groupism is formed in the organisations among the different region of individuals whom are having same kind of similarities in their behaviour and attitudes. This will results in lack of interaction and supportive nature among the employees which creates negativity in the working environment. This will impact the ability of organisation regarding building of effective teams in organisation (Cheng, 2013).
2. Opportunities behind effective leading of workforce in globalised economy
There are large number of opportunities and benefits are gathered by the management through effective guidance and direction of the employee’s. It is important for the Vodafone to adopt different motivational and leadership approaches to influence the behaviour of employees to improve their working efficiency and grab the opportunities available in market effectively. Adoption of the approaches of Hofstede model helps to determine the culture which is present in different countries (Thun, and Hoenig, 2011). This will have six different dimensions which contributes in proper analysing of different situations which persist in countries. It assist the manger of Vodafone is to build effective strategies which are more suitable for the employees in particular nation. This will motivates them to provide their best for the future development of organisation. The different opportunities which are present in future are defined below:
Large market share: There are large number of opportunities are present in the front of the management of Vodafone regarding capturing large market share through ascertaining the higher performance of employees. In telecommunication industry competition is high so, the process of expanding their operation with effectiveness is difficult task. But through the support of employees it is achievable (Dunning, 2013).It is the biggest opportunity for the Vodafone company in increasing market shares and create better goodwill among the competitors in well manner. Therefore, company can take advantages for expanding business at global level and achieve higher growth in better ways.
Innovative ideas: Large number of opportunities are present with the Vodafone is to appoint talented staff members in the organisation as per their job requirements. It will helps to grab the innovative ideas from such skilful employees and implement them in real scenario to improve organisation strength. This is another opportunity for the Vodafone that to brings innovative ideas and unique creation through getting better ideas and adopt advanced technologies so that telecommunication services can be improved in well manner. They consider to attracts more talented people and reach at fresh skills so HR manager take responsibility to appoint qualified and skilled persons who can able to bring such ideas and creativity within firm for the purpose of achieving set goals or targets. International businesses play vital role in increasing better knowledges and support to attracts more skilled or educated employees towards firm for achieving competitive advantages as well (Kitchin, 2017).
Competitive advantage: Many big competitors are working in telecommunication sector in UK such as BT, EE, O2 etc. which has adverse impact upon their customer base. All the companies are using the advance technology to provide their functions and handling of the other different perspectives, such HR , marketing, Accounting etc. All the organisations are big in nature and competent to adopt the innovative technologies in the organisation. Employees are such assets which cannot be copied by any other organisation so their effective regulation within the organisation helps to attain their goals through which they are able to build good position in market which enables them to attain competitive advantage in market (Tayur, Ganeshan, and Magazine, 2012).
Opportunity to expand business: This is very beneficial aspects for entire business firm as at the time of globalisation many of companies expanded their business at another country for the purpose of increasing market shares and create better goodwill in the target market as well. Vodafone is a UK based firm but providing telecommunication services or mobile networking at number of countries to become world's number one business in the telecommunication sector. International management must be required while dealing at global market because it consists number of environmental factors that have direct impacts on the business operations so Vodafone needs to consider various strategies and actions plan so that they can survive in the competitive environment (.Hamer and Collinson, 2014).
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