Managing in Multinational Companies Research Paper

Managing in Multinational Companies - Research Paper Example Culture refers to a set of gained knowledge that some individuals may employ to make meaning of experiences towards generating a unique set of behavior. Different business establishments engage diverse cultures in their setups. These cultures are necessary for guiding the entire organization towards a common objective, by promoting a uniform way of thinking and acting. In other words, an organization prevents the subjectivity of decisions and behaviors in an organization, which promotes uniformity and team working spirit. On the other hand, countries will have different cultures that organizations have to respect, which are inherent in the views and values of such a country. A multinational company setting its operations in the US will need to observe a relatively diverse organizational culture compared to one setting operations in Mexico. An organization has to respect and observe a country’s culture while designing its organizational culture. This report investigates the dif fering views and beliefs surrounding overtimes and how the issue differs across the two countries. In this investigation, the report will illustrate that national cultures have a role to play in shaping organizational cultures.  A common aspect in both countries is that a company will consider other types of employment other than permanent employment to save on labor costs, to achieve flexibility and to benefit from workers for a short period (JILPT, 2009). Such an approach is common in short-term specialized jobs. In addition, there is a major variation in hourly pay rates between permanent and part-time workers in Japan compared to Germany (Smith 2000). Part-time employees have fewer benefits in bonuses offered compared to their full-time colleagues in Japan than in Germany where bonuses are not of much importance. Germany has more part-time employees than in Japan due to the working time variation. There are two reasons to explain the prevalence of part-time working in Germany than in Japan. One, such part-time workers are found in the tertiary sector, which bore the brunt of economic crises than the manufacturing sector, which has motivated employers to source more part-time workers (Smith, 2000). Part-time working in both countries has mainly improved because of structural changes in the economy towards a service economy. In Japan, non-regular employees get much fewer salaries with the difference increasing when the bonuses and one-off payments are considered in permanent employment (Ishiguro 2008). In Germany, on the other hand, part-time employees and regular employees have fewer differences in their wages; a part-time worker earns almost like a regular worker (Smith, 2000), with part-time workers taking advantage of overtime payments to bridge this salary gap. These are some of the factors differentiating working patterns between the two countries.