Commerce and Competitive Business Models †MyAssignmenthelp.com

Question: Discuss about the Commerce and Competitive Business Models. Answer: Introduction After the advent of the globalisation various changes has taken place in the organisational culture of different organisations. There are different kinds of international organisations these are the international corporations, global corporations, multinational corporations the transnational corporations. The organisational culture varies from one organisation to another. Before the globalisation organisations were only confined to the domestic work culture or work force. One of the important features of the globalisation is the transfer of cultures values from one country to another. With the inflow outflow of workforce from one country to another the culture is also getting transferred. Hence organisational cultures of different organisations are also changing (Harzing Pinnington, 2010). Every organisation has to bring changes in the organisational culture since organisations are recruiting employees from different countries. Culture differs from one country to another it is the responsibility of the organisation to incorporate such cultural factors in the organisation to retain employees. This is the role of the human resource management to take care of these factors. There are different barriers like cultural barriers institutional barriers, which act as impediment for different organisations. After globalisation different organisations are opening their office in different countries to operate the organisation in an efficient manner it is essential to provide emphasis on the international human resource management. Cultural barriers the Hofstedes Six Dimensional Cultural Model Large numbers of multinational companies (MNCs) are facing challenges in order to take care of the international human resource management. Most of the MNCs are emerging from developing countries. BRICS nations are the source of most of these MNCs. In case of China one of the most renowned MNC is the Alibaba it was founded by Mr Jack Ma. Alibaba is operating in different international market. This company has opened a new office in Melbourne, Australia. As a human resource management consultant of the Alibaba, it is the responsibility to take care of the international human resource management (Dowling, 2008). It is the role of the human resource management consultant to make the CEO the team of the international human resource management aware of the institutional cultural issues. This will facilitate the management of the organisation to improve the organisational culture operate the business in an efficient manner. Cultural issues make large impact on the multinational compani es. Since Alibaba has opened a office in Australia, the cultural differences between China Australia will affect the operational process of the organisation significantly. Hence this is imperative to identify those issues handle them effectively. There are similarities as well as differences in the culture of China Australia. If these cultural issues are not identified properly, conflict will take place among employees this will affect the growth of the business in a significant manner. The role of the human resource management is to handle various issues of employees. From the recruitment process of employees to training development programmes taking care of the safety security of employees are the responsibility of the human resource management (Schuler Jackson, 2008). Cultural differences of China Australia have been depicted below with the help of the Hofstedes Six Dimensions of culture model. Hofstedes Six Dimensional cultural model is very useful in describing cultural differences. These six dimensions are as follows: Power distance Individualism vs. Collectivism Masculinity vs. Femininity Uncertainty Avoidance Long-Term vs. Short-Term Orientation Indulgence vs. Restraint In case of the power distance dimension it deals with the inequality existing in the society. The power distance index differs from one country to other. In case of the power distance in a society power differential exists that is accepted by the society. Most important features of societies with large power distance are autocratic leadership, complex level of hierarchy, centralised nature of the authority paternalistic approach of management (Friedman, 2007). On the other hand features associated with the lower level of power distance index are flat organisational structure, participative management approach, less inequality less number of supervisory staff (Hodgetts et al., 2006). In this case the supervisors are considered to be equal to the employees of the organisation unlike the society with high level of power distance. In case of the second dimension such as the individualism vs collectivism the individualism defines strategies taken by the organisation, those are self centric in nature. On the other hand in case of collectivism organisation wants to work in group. Therefore in case of the individualism in case of an organisation the management provides emphasis on the self interest. These organisations are operated keeping in mind the profit motive unlike in case of the collectivism approach. In this approach everyone within the organisation gives importance on the privacy. People are interested in the self attainment of goal, fulfil of self interest etc. On the other hand in case of the collectivism, people like working together or in group (Johnson et al., 2006). People do not provide emphasis on the attainment of self goal but of the group. Another dimension is the Masculinity vs. Femininity. In case of the masculinity importance is provided on gender distinction. People run after money achievement of material success. One of the important features of masculinity is the presence of ego pride among people. Unlike masculinity in case of femininity modesty is one of the important feature people provide importance on quality of life. The fourth dimension deals with the way people can tackle anxiety in the society. Society with high uncertainty avoidance index people prefers to lead a life which is predictable in nature. They do not like taking unnecessary risk. Conservativeness rigidity in attitude are important features of the dimension (Ferraro Brody, 2015). On the other hand the society where the uncertainty index is low, people believe in innovation, adopting to the changes taking risk. The fifth dimension is the Long-Term vs. Short-Term Orientation. In case of the short term orientation people believe in the unequal relationships since it helps in maintaining stability in the society. People provide importance on working hard, enhancing their skills etc. In case of the long term orientation the different features include the futuristic approach, importance on persistence etc. The final dimension is the Indulgence vs. Restraint. Society with high indulgence provides importance of fulfilment of the basic human needs emphasise on enjoying life (Kshetri, 2008). Resistant on the other side is based on the principle of strict norms they do not give priority to the fulfilment of the human needs. On the basis of the above model the cultural differences between the China Australia can be defined. In case of cultural difference one of the differences is the food habit. Since Alibaba is one of the famous e-commerce organisation. It supplies variety of products to customers one of the items is food. The food habit of Chinese is different from that of Australians. In case of China the food varieties are of two types these are Yin Yang. Different moist soft dishes are part of the Yin foods this is a symbol of masculinity. On the other hand the spicy foods which are part of the Yang, symbolises the femininity. Tea is popular in case of both the countries. In case of China the staple food are the noodles the rice, whereas the staple food for Australian is the bread as well as the pasta. Dairy products are preferred by Australians but not by Chinese people. The etiquette is also varies from people of one country to another. In China making eye contact is not preferred by them s ince they believe that lowering eyes is a symbol of respect (Hofstede, 2011). Whereas in Australia the eye contact is a symbol of confidence they prefer it. Unlike in Australia, in China people do not like affectionate greetings. Hence the etiquette varies significantly between China Australia. In case of greetings the most preferable posture is bowing slightly but in Australia they prefer handshake. In China people give respect to seniors elderly people. In society as well as in organisations respect to elderly people plays an important role. On the other hand in Australia people do not give respect to elderly people in the society or seniors in the organisation. People give respect to those who are highly qualifies hence respect depends not on the age but on the qualification. In China facial expression also matter a lot in Chinese culture. Chenese people prefer collectivism instead of the individualism. They think that working together improves the productivity. In Australia people are self centric they believe in self reliance. Australians emphasise on the attainment of own goal. Another important cultural feature is the hierarchy. Hierarchy is present in the Chinese culture since long time. This is the main reason behind the high inequality in China. In case of Australia the social structure is flat. Cultural barrier is very minimal in China. Institutional differences Another important difference is the institutional difference. These institutional differences act as a barrier to the MNCs operating in other countries. Large institutional difference exists between China Australia. One of the important differences is the institutional structure. In China the bureaucratic system is prevalent. Bureaucracy acts as the red tapism in the organisation. It acts as the barrier to the organisational growth. On the other hand in Australia bureaucracy is not present in high level (Edwards Rees, 2006). This facilitates the organisational growth in the country. Bureaucracy elongates the decision making process. Therefore in Australia management can take decision smoothly. Another important institutional difference is the language. In China most of the people speak in Chinese language. They generally do not prefer in speaking in English. In Australia people speak in English. Hence, it also acts as the barrier in proper communication. Lack of proper communicatio n inhibits the business process. In China huge numbers of students are completing graduation every year, but their practical skill is very low. Hence, it is not possible for these students to contribute to the industry immediately after completing their graduation. This is creating a barrier for the company to make a proper salary structure. Low salary leads to the high level of turnover in the organisation on the other hand the high salary leads to reduction in the competitiveness of the company. Hence salary structure in China is flexible (Brewster et al., 2007). All these factors play an important role in determining the payment structure compensation for employees. In case of Australia, the payment system is different in comparison to that of China. In Australia employers have to take care of the health security of employees. To take care of these issues the organisation has to provide compensation to employees. The Australian government provides importance on the compensation of employees. Different legislations have been made by the government to provide compensation to employees. In Australia employers have to pay the superannuation to employees after their retirement. Hence operating an office in Australia by Alibaba, it is essential to take into consideration all these factors. To operate in Australia, the company has to follow all rules regulations of the country. If the organisation recruits employees from the host country, it has to provide all such facilities, those are provided by other Australian companies. It is the responsibility of the human resource management to take care of these issues. International human resource management team manages the recruitment policies of the company in other country (De Cieri Dowling, 2006). At the same time various training development programmes, health safety issues of employees are controlled by the human resource manager other group members. Analysing the possibility of transferring the Same Domestic Human Resource Practices in Australia This section is going to discuss the feasibility of Alibaba to transfer their domestic human resource management system practices in Australia where it is opening a new company. From the above discussion it can be said that there are different barriers which acts as a hindrance in managing the human resource policies in other countries. The cultural barrier is the main reason behind the problem in operating the company in other country. It is quite evident that there are large differences between the culture of the China that of Australia. Culture is defined as sharing of common values norms with in a particular society. Culture consists of different factors these vary from one country to another. Culture includes the food habits, dress, etiquette social structure of any particular society. In case of China which is a developing country differs significantly in terms of the culture in comparison to Australia. In China it still believes in the traditional culture in case of Aust ralia they mostly believe in the modern culture. Hence, to operate in the other country it is important to adopt the culture of that particular country (Stahl et al., 2012). If Alibaba recruits employees from Australia, it has to identify the cultural differences then those cultural gaps have to be fulfilled by the company. It is the responsibility of the human resource management to make others working in the organisation, aware of the cultural differences. Adequate training development programme is necessary to fulfil the gap. It is inevitable for the international human resource management team to help employees adapt to the situation. If employees of one country cannot match themselves with the culture of employees of the other country working in the organisation, it leads to the conflict. In any organisation conflict is not wanted since it may deteriorate the working condition. In any organisation when the human resource team recruits any employee, it is the responsibility of the team to provide him or her appropriate training in order to inculcate the organisational culture. Culture of different countries may differ it also acts as a hindrance for people to adjust in other working environment. But when it is an organisation, there must be a unique culture that must be maintained by the organisation to operate the business in a smooth manner (Sparrow et al., 2016). Even if an organisation operates with in the domestic territory only, it has to take this fact under consideration. Within any country also cultural differences exist the main reason behind this is the caste, race, religion etc. It is the responsibility of the organisation specially the human resource team to prohibit any kind of discrimination within the organisation. Cultural difference generally brings in discrimination at the work place. The most effective solution is to maintain a unique culture in any organisation that should make the organisation distinct from others (Ferraro Brody , 2015). If with the help of the proper training session employees can be acknowledged of the culture, it helps the organisation to run efficiently. In case of Alibaba since it has opened a new office in Australia, this strategy may work. When the organisation is operating in other country, it has to create an organisational culture considering the cultural differences. Beside the cultural differences another crucial difference is the institutional difference it also makes the situation complex. When Alibaba is operating in Australia it has to follow the payment system, compensation as well as other institutional features to make employees satisfied with the organisational environment. The Australian government has made different legislation regarding the work place safety, health of workers payment structure Alibaba has to follow all these legislations (Dowling, 2008). To operate in Australia it cannot follow the same Human resource policies, it has to be restructured considering different cultural institutional barriers. This will help the Alibaba to successfully operate the new office in Australia. Conclusion From the above study it can be said that international human resource management has to take into account different factors in order to make these policies effective suitable to the organisation. When an organisation is operating in other country, it has to face various cultural as well as institutional differences these acts as an inhibition in the business process. 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