Introduction
The case of The West Indies Yacht club resort shows that the cultural diversity problem is one of the most important in HRM as it influences the organization and its clientele. The UK is a nation founded on principles that affirm the supreme worth of each human being. From this idea comes the basis for the common bond of all citizens. Even so, relatively few people live by such egalitarian tenets. Cross-cultural differences and multicultural conflicts are convoluted because of the multiple identities found within cultures. To deliver human services, the organization should be well aware of cultural problems and conflicts that affected its target population. Also, cross-cultural differences due to geographic location may have little to do with race.
Symptoms
The main symptoms of problems and complications are poor communication and inadequate relations with employees, customers’ dissatisfaction, and low motivation of foreign staff. Yacht club resort considers its workforce purely as an economic asset, expendable at any time. Ideally, the company should be more concerned about the welfare of their employees and consider not only their job role, but also their personal well-being. Differences of this kind have a bearing on the way in which managers communicate and co-operate with staff lower down the organization, training and individual development. Implicitly, differences of this kind impact motivation and loyalty (Bartlett and Ghoshal 1999).
Problems
The main problem is inadequate leadership style and inability of a leader to recognize current problems and weaknesses. The three problems evident from the case study are cultural; conflict, poor compensation system and terrible customer service. These problems can lead to further crisis and breakdown.. The problem is that pay directly affects what individuals can do off the job, their family’s standard of living, the extent to which they can travel, and the leisure time activities in which they can indulge. Pay indirectly conveys to workers the value an organization places on them and the status they have achieved. When workers are paid less than they think they are worth, they are likely to reduce their efforts in order to restore a sense of equity in their relationship with the employer, a fact well demonstrated by psychologists in their studies of equity theory (Charan et al 2001). Labor relations are considered as the main key issue in international labor relations, which is the degree to which managers have the ability to organize labor to put the limitations choices obtainable to an international business. Moreover, it is a firm’s capability to follow an international or global strategy. It can be considered forced by the actions of labor unions (Barham and Conway 1998).
Solutions
The solutions for cultural conflict are training of employees and the appointment of a new HR manager able to communicate and interact with diverse workforce. On the other hand, the most important concern of organized labor is that the multinational corporation can answer union bargaining power by the threats of moving the production to an additional country. Moreover, the other concern is that multinationals will attempt to import and enforce unknown labor practices from other countries (Charan et al 2001).
The pay system should be changed in order to attract top talents and remain competitive. The pay system can be based on incentives. The nature and focus of the HR practices process ensure that the means of creating and delivering value to the customer are improved. Thus, the first theme, customer value, will be integrated with the second theme, continuous improvement of systems, which are the means of satisfying customer requirements. One major point of difference in the figure is that benchmarking focuses on “practices” that satisfy customer needs. While market research focuses on identification and competitive analysis is usually employed at the strategic level, benchmarking’s unique contribution is in examining “how” things are done to satisfy diverse needs. The proposed changes n India will provide a logical and equitable change approach (Black, 1999).
“Best practice” approach will help the organization to motive employees and introduce new customer service. Also, training and development problems will help employees to improve their knowledge and skills. Unique environment can be used to introduce strategic perspectives of what is required to obtain market leadership. The primary objective of applying strategic management practices is to supply management with the practices that deliver unique customer value. The increased competitive pressures created by global service markets have led to a number of new analytic techniques. Modern corporations have use cross-cultural techniques to compare various aspects of their products, services, and processes against various referents. The effectiveness of the practices is that they help the Director to position its organization as a true leader in education and ensure adequate supply of staff and resources. At this level, the factors that influence competitive advantage are considerably more extensive and complex to manage (Charan et al 2001).
Evaluation of alternatives
Training programs and development initiatives will cost much for the club but they will help to improve communication and skills. The “best practice” approach is a good management tool but it requires time and financial investments in the entire organization. Yacht club resorts should regard work people as a commodity to be bought and sold. Supported by their managers and under-managers (mostly recruited from the ranks of engineers and accountants), the industrial entrepreneurs pressed on with their profitable campaigns in the cause of progress, mindless of the casualties among their workforces. Pay can thus be a powerful motivator in encouraging many workers to higher performance and greater growth. Nevertheless, effective pay systems–satisfactory for the worker as well as productive for the employer–are more the exception than the rule. External wage comparability is regarded as a means of achieving a degree of equity vis-à-vis other employees outside the employing organization (Charan et al 2001).
The Best Solution
For significant changes to happen, there usually have to be general factors or trends working together in a direction, and a movement, organization pioneering the way with an effective flexible leader at its head. If one or more elements in the combination are missing, then change either did not happen or came about very slowly. Increasingly, leadership should be seen to be a key ingredient in the process of change (Charan et al 2001). A leader of a Yacht club resort should have visions of the future that inspire performance. He should be able to communicate his visions effectively to others while relating to others on an interpersonal level to ensure the achievement of their visions. The best solution is to introduce a new leadership style based on cross-cultural management techniques and tools and organize new training programs for employees. New communication policy will motive and inspire employees and help the organization to retain top talents.
References
Bartlett, C. and Ghoshal, S. (1999). Managing Across Borders: The Transnational Solution. 2nd edition, London: Ramsden House.
Barham K., Conway C. (1998). Developing business and people internationally: A mentoring approach. Ashridge Research.
Black, J.S. (1999). Globalizing People through International Assigignments, Reading, M.A.: Addison Wesley.
Charan, R., Drotter, S., Noel, J. (2001). The Leadership Pipeline How to Build The Leadership-Powered Company, Jossey Bass: San Francisco.