International Business Culture
Outsourcing is where the organizations uses a third-party to transfer work, operations, jobs, or processes to an outside staff over time.Companies generally do this to reduce costs and improve efficiency.Outsourcing functions can be done on-site or off-site by third-party.
Sometimes a company experiences growth, which cannot be supported with its own internal employees. In order to maintain the momentum, companies can opt to employee a retrained workforce from the third party company to expand and expand without interrupting their work.
Outsourcing can benefit the organization in many ways. It can reduce and control costs, it will improve organization’s focuses, and it shares the risk, and also it will maximize the external resources, not only that it will access the organization to new market areas. And when we look into some examples of outsourcing it may have some common activities such as human resource management, management of facilities, management of supply chain, marketing etc. this kind of outsourcing activities works widely in the industry.
And also when we are considered outsourcing we may have to look why it matters to organizations. It’s because outsourcing decisions are usually based on improvements in cost reduction and allocation of resources within the enterprise. Outsourcing enables companies focus their technology and outsource resources for other tasks. However, for achieve high level of standardization the management requires effective outsourcing indeed.
Hofstede’s cultural dimensions theory developed by Gert Hofsted, is a framework used to understand the cultural differences between countries and how companies work in different cultures. In other words, this framework is used to differentiate their influence on the cultures, cultural aspects and business environment of different of different countries. There are six categories to define culture according to Hofstede’s theory. They are power distance index, Masculinity vs. Femininity, long term vs. short term orientation, high uncertainty avoidance vs. low uncertainty avoidance, Individualism vs. Collectivism, Indulgence vs. Restraint culture etc.
In power distance dimension it explains about certain cultures with high power gap which the countries has powerful members in the society with more power and make decisions about the less powerful members in society. According to the last year calculations India scored very well in this dimension at the score of 77. And the value od the united status is less than 40, which is not so surprising. After referred “outsourced” movie, we all can get clear idea about power distance dimension.In this film, Indian employees are very important because they deal with their owners with respect.
This could be seen in the scene of Puro when he was have a formal expression towards Todd for the first time. In that time, with Todd, he did not end up with a high level of MPI’s high level of controversy. And on the second incident, When Puro was scolded, he apologized and brought healthy food to Todd. It shows that he requests the head of the office. And on the third incident, when Dave and Todd communicates they used too casual language to represent the high power distance. And on the fourth incident, As seen in the pronunciation class, Todd’s suppression of force was very good because he had to change his topical way to reach his leadership to the employees.
However, the power distance amount Dave and Todd did not changed. And the other incident was, which shows the power distance, the way Asha is treating there people and the way Puro was looking after Todd and Asha and Puro, they were always considering about Todd’s well-being in their country. This dimension also influenced the company cause Todd finally changed his leadership style. His human orientation has changed from a moody manager who avoids every opportunity, to positive thinking person who encourage his employees to achieve their targets.
Since India and United Status countries are much different from each other, Todd had to face many issues. Todd is facing a difficult dilemma: to go to India to train hod replacement in a call center or to lose his pension. Despite their opposition, they have formed a group native Americans in India without a proper understating of call centers, English knowledge, and those products they sell. Todd went to India, established a call center, and he has to reduce their minute per incident to 6, which 12:17 in present. And without getting proper understanding about Indian culture and how the people work, Todd manages this Indian call center team like an American employee.
He is disappointed because he lacks time, does not talk on the phone, and wants personal freedom. And Tod was expecting things to be perfect like in America.And then Todd began to understand that not only can he train his call center staff in American ways, but he should also be educated in the Indian way. They progress because Todd agrees to learn to dance, while his colleagues learn how to pronounce the goods he sells.
In addition, Todd offers a sales program that allows employees to retrieve the products they are selling. MPI falls to 7:41. After understanding about Indian employees and their capabilities Todd trained Asha as Deputy Director. She looks like a strong leader and helps others to help in their work. It is not clear whether an assistant training is culturally correct, but Todd will help Asha to tell that directing and following his instincts is very possible. MPI falls to 6:01.
When we looking into cultural shocks that was faced by Todd, we can mention below things. Todd refuses to drink a lot of sugar during his drinking tea. In this case, he feels uncomfortable with food and drink in India, so Todd goes to the second phase, i.e. litigation and cultural shock. And the other incident which shows cultural shock to Todd was the Mac Donald scene. Todd accidentally found an advertisement called “Mac Donalls” when it appeared in the market but thinks that it is “Mac Donald” in India like “Mac Donald” in America, hamburgers use vegetables instead of beef.
Then there was one person he recommends Todd to have “Maharaja Veggie Burger”. And Todd bought it and however he enjoyed it. Another incident was about a traditional event in IndiaT.here are many traditions in each country to protect the heritage of our ancestors, and there is another tradition from one country to another. Todd gets annoyed when his clothes of “holy” become dirty. After that, this festival was interesting. So Todd is taken to “Holy”. Todd says that the celebration of “Holy” in the United States is like “Halloween”. That’s how Todd was adjusted to that. After living in India for a certain period Todd has learned about the cultural differences and he has solved them in a well manner.
Uncertainty avoidance is one of the cultural dimensions introduced by Green Hofstede. Uncertainty means outcomes or future conditions are unpredictable. High uncertainty avoidance means people in a particular county are comfortable with uncertainty and Low uncertainty avoidance means people participate in certain behaviors to stay in comfortable situations in the future. Some characteristics of High uncertainty avoidance countries are more formal rules, low labor turnover, more resistance to change and some characteristics of Low uncertainty avoidance are more innovative, few rules, high labor turnover and less resistance to change.
A common example of high uncertainty avoidance is that people who can’t control their lives they stop trying and put their faith in God, this means that they believe God will take care of some uncertain situations that come across their lives. An example of a low uncertainty avoidance is that people who take risk in life to face uncertain situations that come