(Solution) 70S05 Question 4 (AC 4.1) Balancing Global Corporate Norms with Local Labour Practices

Solution

70S05- Managing People in an International Context

Question 4 (AC 4.1)

In balancing global people management practices and change initiatives with local norms in new overseas operations, Fitter Threads Ltd will be faced with the following challenges;

Balancing Global Corporate Norms with Local Labour Practices

Fitter Threads Ltd’s one of the main challenges is balancing its already established global corporate norms with the local labour practices in its newly acquired Asian operations. The company has always maintained stringent standards on business ethics, environmental protection, health and safety, employees voice, and fair recruitment practices (Meyer et al., 2023). Yet, in Bangladesh, India and Vietnam these standards are sometimes not completely adopted due to historical, economic and cultural reasons (Nguyen et al., 2023). In these countries, lower wages, longer working hours, and little emphasis on employee empowerment may be included in the local labour practices and sometimes accepted as the norm. In these contexts, imposing a more rigorous global standard can generate resistance from local management and workers as it clashes with long established practices and the local economic reality (Chowdhury et al., 2022). Fitter Threads Ltd, for instance, might implement new labour practices like fair wage policies and more stringent safety protocols that conflict with the traditional methods in place. To avoid backlash, this transition will need negotiation, training, and implementation (Bryan & Lyons, 2024). Change has to be facilitated by the company with the communication strategies and local stakeholder engagement processes investments. These efforts require significant change management, including custom training programs, gradual integration of higher standards, and ongoing dialogue with local unions and regulatory bodies (Getman et al., 2023). Ultimately, this balance is essential for protecting the company’s reputation and ensuring sustainable business growth, in line with the local socio-economic realities.

Integrating Divergent Communication and Leadership Styles

Another big challenge is bridging the divergent cultural communication styles and leadership expectations between global standards of Fitter Threads Ltd and local standards of Bangladesh, India or Vietnam. In the UK direct and egalitarian communication is common with people expected to openly share their opinions and challenge ideas (Gil-Ozoudeh & Iwuanyanwu, 2024). On the contrary, local cultures in these Asian countries tend to be high context and hierarchical, with norms of indirect communication where subordinates defer to authority and avoid confrontation (Akanji et al., 2021). According to Rabbani et al. (2024), this creates a disparity that can result in miscommunication, lack of team innovation, and even team conflicts. For example, a UK manager could take a lack of verbal dissent as evidence of agreement, but local employees may just be adhering to cultural norms of respect. To balance these differences, leadership development and communication training needs to be enhanced (Kelemen et al., 2024). For instance, Fitter Threads Ltd…..

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