Overview of Siemens Company

Discuss about the Cross cultural and diversity issues.

Globalization is the process of increased interconnectedness in various countries. In today’s competitive world, the significance of globalization has increased. Here is the discussion about the operations and activities of Siemens Company. The company focuses on the technology, automations, railway vehicles and PLM software. In today’s modern world, the firm is increasing revenue and profits by providing the innovative products and services. The paper also explains that how globalization affect the progress of the firm adversely. Cross cultural and diversity issues also have been explained in the task. Further detail of the task has been detailed below.

Siemens AG is a German conglomerate firm with its headquarter is situated in Berlin and Munich. It is the biggest industrial manufacturing organization in Europe with branch offices in abroad. There are approx 372,000 employees employed in the company. Siemens is a global powerhouse monitoring on the areas of automation, electrification and digitization. It is one of the biggest producers of energy efficient and resource saving technologies. Along with this, the company is a leading supplier of systems for transmission and power generation as well as medical diagnosis. The main aim of the company is to provide innovative and latest technologies to the people across the world (Oriontalent, 2018).

Culture may be defined as the acquired knowledge and experience that people use to interpret knowledge and create social behavior. By using effective cross cultural management, the people have been able to learn and communicate with each other. When people join the company, they bring with them beliefs, values that they have been taught (Kraidy, 2017). On the other hand, diversity also plays a vital role in each and every company. Diversity may be defined as the concept of diversity entails respect and acceptance (Bochner, 2013). Culture and diversity play a vital and empirical role in each and every company to conduct business activities and operations successfully and effectively. In today’s era cross cultural and diversity issues are raised at the workplace that could affect the success and growth of the firm. These issues also affect the people and management adversely (Chhokar, Brodbeck and House, 2013). The cross cultural issues include language, alternative dress, food, availability of goods, driving patterns and different management philosophies. These factors create cultural shock in the workplace. Due to language barriers, the employees are unable to understand and know the language and culture of different countries that influences the sustainability of the firm. In addition, there is discrimination in the workplace in terms of sex, gender, age and caste that may affect the profitability of the company (Oinas, 2017). It also creates diversity issues within the organization. Along with this, harassment and gender gap are other issues in a diversified work environment. Moreover, poor communication also has a direct impact on the success and targets of the organization negatively. The cross cultural and diversity issues affect the revenue and returns of the Siemens company adversely. The firm needs to focuses and analyze these issues and challenges to overcome the competitors and make a favorable working environment in the organization (Mignolo and Escobar, 2013).

Cross Cultural and Diversity Issues in the Workplace

Globalization is one of the significant forces impacting on the business and economy. In addition, Globalization may be defined as a process of integration and interaction among the employees, organizations and governments of different countries as it is a process which is driven by the investment and international trade with adding information technology (Hirst, Thompson and Bromley, 2015). On the other hand, regionalization is process of dividing an area into a smaller segment known as regions. Furthermore, it is a process of dividing a country into administrative regions. The decision makers are far away and they are unable to make unique decisions within the organization. Siemens is a multinational company and it is operating and managing across 190 separate nation states. The threat is one of the biggest challenges for the firm caused by currency fluctuations. Siemens Company has established its branch in China also (Dobrin, 2016). China is a significant part of the firm to expand the business operations and activities. Culture and globalization have impacted a lot on the manner and way these multinational firms run their business operations. Globalization affects the culture of the company adversely. Due to globalization, people are failed to adopt a foreign culture in the workplace. This has been issue and barrier dealt by the firm to manage and handle the issues. Furthermore, culture also affects the profitability of the organization adversely. It shall be noted that income inequality has risen in the country due to globalization. Globalization also increases unemployment in the marketplace thus it affects the growth of Siemens. It also may influence the environment and globalization creates financial problems for the company. Additionally, workers are provided unhealthy working conditions and culture leading to health hazards (Fritsch, 2015). The company uses child labor to provide support in their business operations and activities. It shall be stated that deadly diseases like AIDS and other communicable diseases are increasing due to direct consequences of globalization. In this way, most of the health issues occur in Siemens due to globalization. Deforestation arises due to globalization as it also destroys the land which entails lots of resources and minerals. Globalization business has exploited the resources and capital of the firm. The globalization tends to make the world more effective and homogenous place. As a result, the company is failed and unable to preserve the old tradition, beliefs, custom, and culture of people across the world (Sunkel and Inotai, 2016). In this way, the organization is unable to compete and strive with competitors in the international market. Due to globalization, adequate opportunities are not provided to unskilled workers in the global environment.  On the other hand, it is accountable for the emergence of various companies. Therefore, it is stated that they are not able to provide good and unique working condition to the workers in the workplace. Furthermore, globalization increases competition and this competition can be interconnected with products, services, and technology. It shall be revealed that customers have various types of choices in the market as it affects the behavior of people (Caldwell, 2013). All these globalization issues could affect the sustainability of Siemens and it increases and enhances rivalries in the international market. Let’s talk about regionalization; it creates issues such as restructuring and controlling issues. Apart from this, regionalization can be inclusive that can influence the revenue and returns of the firm. In addition, Siemens has not been able to maintain control on the small business due to regionalization issues (Baylis, Smith and Owens, 2017).

Impact of Globalization on Siemens Company

The company needs to manage the different cultures through the formulation of effective and dynamic marketing policies and plans which can be employed by the firm to maximize their profits and market share. Furthermore, the firm should focus on the policies, plans, and strategies to reduce the negative impact of globalization. In addition, the government should make unique and dynamic rules, legislation and laws to handle the globalization issues globally. To avoid the negative impact of globalization and regionalization, the government and company must focus on the joint research and development to make a good image in the minds of the consumers. Moreover, it shall be noted that the federal government must coordinate with companies to handle the development and expansion. Additionally, the company should provide training and development coaching to the employees to understand the culture of different countries. They must check the safety protocols and individual governments to carry the business activities successfully.  New and innovative technologies shall be used by the organization to manage the issues of globalization. Siemens should make policies and strategies to protect the environment and business operations. People should promote and enhance the educational programs to improve the quality of human resources for next generation. Apart from this, the organization must promote and preserve the custom and culture of the people. Deforestation shall be reduced and eliminated by the organization as well as people across the world. The national and international institution should deal with various urgent issues related to society in order to reduce the negative impact of globalization. In addition, people must improve and enhance the multilateral standards and agreements to make globalization inclusive and fairer. Along with this, the firm should focus on the infrastructure and energy sector to eliminate the adverse impact of globalization. The company should also reduce the carbon emissions to detect the adverse impact of globalization. In this way, the Siemens can avert and reduce the negative impact of globalization.

Conclusion

On the above-mentioned study, it has been evaluated that Globalization plays a significant role in today’s era. Globalization affects the sustainability and business operations of the Siemens Company. Due to globalization, culture and diversity issues are raised in the workplace. These issues affect the profitability and outcomes of the firm. It is recommended that the company should make strict rules and policies to overcome these challenges and issues.

References

Baylis, J., Smith, S. and Owens, P. eds., 2017. The globalization of world politics: an introduction to international relations. Oxford University Press.

Bochner, S. ed., 2013. Cultures in contact: Studies in cross-cultural interaction (Vol. 1). Elsevier.

Caldwell, C., 2013. Diversity issues in movement observation and assessment. American Journal of Dance Therapy, 35(2), pp.183-200.

Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.

Dobrin, K., 2016. Globalization of the world economy and the global financial crisis (No. p16103).

Fritsch, S., 2015. Technological innovation, globalization, and varieties of capitalism: the case of Siemens AG as example for contingent institutional adaptation. Business and Politics, 17(1), pp.125-159.

Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley & Sons.

Kraidy, M., 2017. Hybridity, or the cultural logic of globalization. Temple University Press.

Mignolo, W.D. and Escobar, A. eds., 2013. Globalization and the decolonial option. Routledge.

Oinas, P., 2017. Proximity, distance and diversity: issues on economic interaction and local development. Routledge.

Oriontalent.,2018. About Siemens, Retrieved from 1^st May 2018, < https://www.oriontalent.com/siemens/>

Sunkel, O. and Inotai, A., 2016. Globalism and the new regionalism (Vol. 1). Springer