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Challenges of Managing Diversity in Multinational Organizations

Question:

Prepare a report that critically evaluates the utility of theoretical Models of change for executives who are looking to transform ways of working within their Multinational Firms.

Organizations increasingly require talent to create a difference. There is a requirement to develop effectiveness across countries and regions to achieve corporate goal while balancing local interest. The requirement for multinational leader in an organization is daunting. Global executives require the same knowledge and capabilities to deal in a different situation. In the recent time the global development has created challenges in term of diversity management. 62 percent of the Multinational executive understands the issues regarding the poor performance of their role (Albach, et al 2015). Diversity management is the key to attain growth in a highly competitive market. Multinational Organization should embrace diversity by managing workforce in an effective way. In today’s competitive scenario it is important for the organization to manage business in an effective way. To gain a better understanding it is evident for the business organization to develop noteworthy changes by implementing plans the best diversity practice thereby permitting business organizations to take strategic measures. Corporate leaders act as an important source to manage the business environment. The entire global business environment is changing and creating a necessity to hire efficient workforce.  It is about embracing the changes and to adopt them in order to make an effective change. It is more about embracing differences, innovation and ideas to gain effectiveness. Diversity has allowed many multinational organizations to gain competitiveness (Booth, 2015). From the US perspective, ‘Diversity management’ is to symbolize a break from legislated parity concepts such as equivalent chance and assenting act. The report assess different ways in which Google assess diversity management and indicates some diversity opinion regarding the management of change in multinational firm (Bradley, 2016).

Google is an American based multinational technology company providing with Internet related services and product. It includes online advertising technology, clod computing, software and hardware. It was founded by Larry Page and Sergey Brin in the year 1998. The company has gained a quick development since incorporation. This has caused a chain of products, acquisitions, and partnerships for the company.

Most of the companies are facing major challenges in term of changes.  The products and services that produce a continuous income should be restored with better equipment and goods. This will allow in managing the work in the most appropriate way. The advantage related to education competency is short term. Soon other nation will develop efficient professionals by investing on educations and services. The only reason why the organization fails to stand out is due to fewer competencies to match up with the International brand. In order to strengthen the capacity the organization has to implement an effective change management process. This will create abilities to challenge the conventional organization and management abilities (Bridges and Bridges, 2017; Demirkan, Spohrer and Welser, 2016).

Google: Managing Diversity and Change

In order to gain market effectiveness Google has confronted conservative management thinking. The organization complements GM in the 1920s and Toyota in the 1980s through a view to incorporate innovation. Google has a distinguished identity in the market and is world’s most efficient brands for running, according to BrandFinance Global 500. At present, the company is considered as world’s most efficient companies (Schuler, 2015).

From an external viewpoint, Google seemed to have fruitfully shared two debatably rather different competencies. The company is a pioneer of change management and has incorporated engineering skill in computer science. Their knowledge is majorly related to scientifically based expertise concerning human capital. It is based on six management principles. The purpose is to improve the Dynamic capabilities. The company’s capabilities to put together, expand, and reconfigure internal and external competencies to meet rapidly changing surroundings (Cameron & Green, 2015).

 An endlessly changing organization: The organization is based on a proactive approach and any delay in terms of changes is not entertained.

A people-centric approach: The Company is people-centric, focusing on the entity and energizing his or her innovative control. This principle is based on a belief that people want to be creative and that a company must provide them with a setting in which they can express their creativity. The organization is fostering ambidextrous behavior by motivating innovation with different forms of organizational logic. They are determined hard to gain daily production that works with a conformist planning-and-control advance and innovation, which requires greater liberty, elasticity, and a more unfasten approach toward experimentation (Gollenia, 2016).

Google has an unwrap organization that work by imbibing effectiveness. A company can be more or less about working in integrated surroundings. Constantly innovative companies have permeable limits. They want to create a difference through a steady and mindful exchange of information with their ambiance (Cummings & Worley, 2014).

 A systematic approach regarding the effectiveness of work is important in order to gain competency.  In order to gain effectiveness it is important to develop a systematic approach to work differs from the conservative linear way of working.  This approach necessitates a holistic sight and considerate of the whole corporate system and how the dissimilar mechanism in the system authority over each other (Gibbons, 2015).

The Google model is often described as ‘Googlery’ leadership style with innovation culture, importance on people, and semi-structure based on six management principles. These principles allow the organization in meeting the objectives (Dubois, 2013). It therefore set the objective in order to maximize the output. The three examples are demonstrated as follows:

Google’s Six Management Principles

Google is a dynamic example of gaining effectiveness at work.  The organization exhibits many signs of active competencies. Their management gives a specific base to settle on the next vital area for Google. Moreover, there is a customary requirement wherever the organization has to intimidate existing products. In order to develop the features it is significant for an organization to be actively dependent on being an efficient leader.  Google is not afraid to expand itself in a best likely way. The management choice concerning the evaluation of the changes is pertinent to convene the pre-defined way. The organization has assigned several hundred engineers to expand Google+ is a model of managing changes (Haslam, et al 2014; Manjoo, 2013). The business has been working competently in increasing active culture facilities. All These capabilities continually survive in the mind of management. Google has people-centric approach. Their background focuses on simplicity and openness, and so they trusts in employees.  The recruitment process is focused on hiring the right people who can supervise rapid changing environment. Most of the company’s contributions to its employees is in the form of education decide whether to opt in. Google is keen to remove needless bureaucratic features in order to give freedom to each and every employee.  Moreover it facilitates communication and teamwork between colleagues (Hayes, 2014).

The company is known across the world as an ambidextrous organization. At Google, in cooperation with these orientations coexist in order to develop a hardcore culture. Google applies the 70–20–10 percent rule. This rule means that the organization is dedicated to core business which means that 70 percent of employee’s spent time there. 20 percent of the time is spent on projects related activity. Lastly the 10 percent is spent on projects not related to core business. Their project-oriented activity is approved out in equivalent to daily operations in an ambidextrous Environment. Google’s semi-structured organization assists equilibrium between those two orientations. Google has a productive business environment where each employee’s act is appreciated according to together the characteristic of production and innovation (Daft, 2013).

The capability of an organization is to gain competency depending upon the pioneering process that it follows. It is significant for companies to be competitive and to manage the resources in a significant way.  The management model consequently requires putting a necessary effectiveness as shown to be in cooperation unconventional and victorious in powerful modernism is the Google model. This model is based on six critical management principles.  This has been functional among other things like leadership, culture, HR/processes, and structure (Kondalkar, 2013; Northouse, 2015).

Benefits of Diversity for Multinational Organizations

Sunder Pichai has rightly said - “A diverse blend of voices helps in better discussions, decisions, and outcomes for everyone.” Diversity is been an important component of Google. The CEO of Google is Sunder Pichai who were appointed replacing Larry Page. This clearly describes the organization interest in managing diversity.  By including leaders belonging to different cultural background increases the overall capacity. This affects the organizational productivity. Globalization has affected the way in which the organizations are working (Fostering a fair and inclusive, 2017). The primary motivation behind involving diversity is to increase the productivity. The improving productivity and uts impact on the working behavior has a huge impact on the manner in which work is been carried. Diversity is a combination of ethnic, sexual orientation, national, cultural difference, attitudinal, social-economic, and personal differences.  The main focus of the human Resource department is to resolve issues in an appropriate and well-organized manner (Google Diversity, 2017).

Change is predictable and runs through all businesses regardless of size, industry and age.  It is important for business organizations to implement changes in the fast growing economy.  The organizations must change quickly in order to grow in a well and effective manner. In order to gain competency, it is important to measure effectiveness. The entire global business environment is changing and creating a necessity to hire efficient workforce. Diversity for a multinational organization is an affirmative way of acknowledging changes. Diversity is much more than a multicultural challenge. The purpose of the change is to retain effective growth by assuring sustainability (Shani & Noumair, 2017). Changes are an important part to an organization. While focusing on the effectiveness of the team it is relevant to comprehend the importance of the change to the organization. In order to implement effective rules and procedures it is important to understand effectiveness. The change model therefore allow in gaining competency at work. Changes to an organization are inevitable. Therefore, it is important for the business organization to adopt changes by focusing on effective market growth and development process. The concept of "change management" is a well-known in most of the businesses today.  The procedure on how to manage the businesses manage change varies extremely depending on the nature of the business (Armstrong and Taylor, 2014).  In the fast paced world the change and the people are involved together hence creating ample of opportunities. The key part of this depends on people who understand the change process.  The principle is to improve the Dynamic capabilities (Storey, 2014).

Importance of Effective Change Management Processes

People management is a process to manage the effectiveness in a well- organized manner. In order to manage people it is important to gain effectiveness.  While gaining competency it is necessary for the organization to develop capabilities by gaining longevity. The most difficulty in an organization is to manage people.  This is to gain competency by developing long term efficiency. The purpose of an organization is to regain capacity by taking over the most effective long term effectiveness. The effectiveness of an organization largely depends upon the way in which the organization is matching up with the quality (Haughton, 2015). This is to gain proficiency at work and to deliberately provide with the results. The purpose is thereby to focus on gaining efficiency by focusing on individual performance. Growth is only possible if the organization makes efforts to gain longevity. Performance management is an important scale used by the managers to gain effectiveness.  This is one of the most important tools used by the managers to gain accuracy at work. Google do understand the process to manage individual capability through the process of people management. They know how to manage the organization in a well and effective way by developing effectiveness. Google works in a multi-cultural environment (Zhang, et al 2015). The company has a responsibility towards gaining competency at work. Employees need to be managed by gaining effectiveness through development of workforce in a significant way. The purpose is to measure the process that allows the employees to grow in a multi-functional way. Employees are given a wide opportunity to develop themselves in a well-defined way. By managing the operations it has become evident that the organization needs to gain competency of work by developing effectiveness. The only reason why the organization fails to stand out is due to fewer competencies to match up with the International brand. For gaining longevity it is important for a team to be more focused on gaining competency. It is important for them to focus on measuring focused growth. People management is thereby a long-term activity that involves each and every individual in a well-defined way. For attain longevity and competency at work the purpose is to manage people in order to gain effectiveness (Thompson, 2013).

In order to manage change successfully, it is consequently essential to meet the wider impacts of the changes.

As per Kotter’s Change management theory:

The first three steps include: a climate to incorporate a change. The next three steps are regarding engaging the whole organization and last two step are to sustain change. Google being the pioneer of change management focus on change management theory in an effective way by innovation. Change management is a very extensive field and a wide approach that focus on managing change that differ widely, from organization to organization. Numerous organizations and consultants Force for a formal change management methodologies. These offer toolkits, checklists and outline plans that require to be done in order to manage change successfully. The only reason why the organization fails to stand out is due to fewer competencies to match up with the International brand. In order to strengthen the capacity the organization has to implement an effective change management process. From early on, Google employees were encouraged to spend a significant portion of their time on interesting side projects. Both Gmail and AdSense, started out as 20% time projects.  In 2010, Chris Trimble criticized 20% time both for being costly and for emphasizing   ideas over execution. 

Conclusion

How Google innovates

According to the studies, first step at Google is through innovation.  It is not only the long-term outlook, that goes with the infrastructure, technical and managerial innovation. Through this they have made possible to imbibe the strategy in each and every product.

The organizational structure comes up again in a 2014 piece by Linda Hill, Greg Brandeau, Emily Truelove, and Kent Lineback. This helped Google in innovating continually over year. The important traits of innovative organizations like Google are the ability to learn from experiments and by combining opposing ideas.

Another Google’s innovation strategy comes from a 2013 piece on DARPA, running an innovation group at Motorola Mobility, which Google acquired in 2012.  People are involve in the rare form of innovation known as “Pasteur’s quadrant” . They are simultaneously expanding scientific knowledge to seek societal need.

While managing a change it is evident for the managers to firstly question to believe is what change management essentially means in the situation. Change management focus on people, and to ensuring change is methodically, effortlessly and enduringly implemented. In order to know effectiveness that means precisely in the situation, one need to find out the most appropriate theories.

A company like Google has embedded network that expressly includes ties with possible colleague and important actors. They possibly can yield better deal making and admittance to new resources. While moving further the organization has to think in a Multi-dimensional way implementing a network viewpoint within a company. It is quite challenging for an organization to develop an effective model in order to gain competencies. One such company is Google. The organization is to develop an effective model and hence following the “network company” in order to manage the regulatory functions.

Google had made clear to all new recruits about their expectations... “People are coming to Google in order to become a network and topic expert. For an organization it is important to achieve this determined objective through a lot of organizational effort. The purpose can be achieved by connecting the organizational objective  to empower collaborators and give them more liberty to start projects that matter to them(Walter,2014).

The organization is focused on developing a flat hierarchy where every individual has a liberty to make their own decisions. At Google, no one has an assistant. They are empowering individual in the organization by empowering every one of their collaborators. There is only little hierarchical level in the organization that is possibly due to a definite structure. The opportunity to meet and interrelate more liberally, resulting in natural “leaders” or “experts”. This is helping in emergence of the function of role in the configuration of natural sub-networks within the company. Google has a “quasi-flat organization”, where an individual can directly interact with the operational leader introducing a lot of elasticity in the company.  Google has developed efficient professionals by investing on educations and services. The leadership and training program in the organization is permitting them to gain definite knowledge to the employees to stand out.

The purpose of the organization is to bring concrete results by managing the organization in accumulation to organising its workforce into little, fast-paced and bendable work teams. Google has to make sure that the organization is apparent and network-focused. It is important to conduct a common peer evaluation questionnaire every six months to assess their peers’. In this way it is possible for the organization to gain competency and to evaluate effectiveness in a systematic way. Corporate leaders act as an important source to manage the business environment. The entire global business environment is changing and creating a necessity to hire efficient workforce. 

Such a network-driven organisation will possibly gain a desirable growth consequently leading to an effective business atmosphere. The organization is fostering ambidextrous behavior by motivating innovation with different forms of organizational logic. They are striving hard to gain daily production that works with a conventional planning-and-control approach. Google is aware about the changes that are taking place in the business environment hence leading to quickly regain effectiveness. This is one of the key assets that the organization has been incorporating in the day-today- model. . By encouraging individuals, Google remains the largest network company on the Web

References

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Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Booth, S. A. 2015. Crisis management strategy: Competition and change in modern enterprises. Routledge.

Bradley, G. 2016. Benefit Realisation Management: A practical guide to achieving benefits through change. CRC Press.

Bridges, W., and Bridges, S. 2017. Managing transitions: Making the most of change. Da Capo Press.

Cameron, E., and Green, M. 2015. Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.

Cummings, T. G., and Worley, C. G. 2014. Organization development and change. Cengage learning.

Daft, R.L., 2014. The leadership experience. Cengage Learning.

Demirkan, H., Spohrer, J.C. and Welser, J.J., 2016. Digital Innovation and Strategic Transformation. IT Professional, 18(6), pp.14-18.

Dubois, D.2013. Google, the Network Company: From Theory to Practice. Online Available at:  https://knowledge.insead.edu/leadership-organisations/google-the-network-company-from-theory-to-practice-2602 Accessed on: 21 August 2017

Fostering a fair and inclusive, 2017 Google, Google Diversity. Online. Available at: https://www.google.com/diversity/at-google.html Accessed on: 21 August 2017

Gibbons, P. 2015. The Science of Successful Organizational Change: How Leaders Set Strategy, Change Behavior, and Create an Agile Culture. FT Press.

Gollenia, L. A. 2016. Business transformation management methodology. Routledge.

Google Diversity, 2017.Online. Available at: https://www.google.com/diversity/ Accessed on: 21 August 2017

Haslam, S. A., van Knippenberg, D., Platow, M. J., and Ellemers, N. (Eds.). 2014. Social identity at work: Developing theory for organizational practice. Psychology Press.

Haughton, J.2015. How Google manages its people. Online Available at:  https://www.managers.org.uk/insights/news/2015/august/how-google-manages-its-people Accessed on: 21 August 2017

Hayes, J. 2014. The theory and practice of change management. Palgrave Macmillan.

Kondalkar, V. G. 2013. Organization effectiveness and change management. PHI Learning Pvt. Ltd..

Manjoo, F.2013. The Happiness Machine. Online Available at:  https://www.slate.com/articles/technology/technology/2013/01/google_people_operations_the_secrets_of_the_world_s_most_scientific_human.html Accessed on: 21 August 2017

Northouse, P.G., 2015. Leadership: Theory and practice. Sage publications.

Schuler, R.S., 2015. The 5-C framework for managing talent. Organizational Dynamics, 44(1), pp.47-56.

Shani, A. B. R., and Noumair, D. A. (Eds.). 2017. Research in organizational change and development. Emerald Group Publishing.

Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals). Routledge.

Thompson, N., 2013. People management. Palgrave Macmillan.

Zhang, Y., Waldman, D.A., Han, Y.L. and Li, X.B., 2015. Paradoxical leader behaviors in people management: Antecedents and consequences. Academy of Management Journal, 58(2), pp.538-566.

Walter,F.2014. How  Google has changed Management  10 years after its ipo. Online. Available at: https://hbr.org/2014/08/how-google-has-changed-management-10-years-after-its-ipo Accessed on: 7 October 2017

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