1
EXPLORING THE IMPACT OF CULTURAL ATTITUDES TOWARDS HIERARCHY
AND POWER DISTANCE ON EMPLOYEE FEEDBACK AND PERFORMANCE
EVALUATION PROCESSES IN MULTINATIONAL COMPANIES
Abstract
The following practice material focuses on the interconnection between cultural values of
hierarchy and power distance on the one hand, and the employee feedback and performance
evaluation in the context of MNEs on the other hand. Cultural dimensions are initially presented
in this process, arguing national cultures’ differences based on Hofstede’s theory. It then
elaborates the details on how such attitudes influence the acts of giving and receiving feedback
which include upward feedback in high PDI cultures, interacting cross culturally among peers,
between managers and subordinates. The material also explains the effect of culture on
performance assessment; aspects of culture in the criteria and standards; various culture and self-
assessments tools and approaches; and, the ways in which culture influences the raters. A large
portion of it revolves around topics such as the global and operated conflict, which are the
multinational firm’s efforts to implement a universal practice around the globe at the same time
as the need to accommodate the local cultural values. The relevance of enforcing cultural
sensitivity as an aspect of cultural quick in both HR practices as well as handling of cultural
expectations. The practice material then turns to considering how to modify feedback and
evaluation interventions for culture and recommendations culturally appropriate feedback and
evaluation frameworks, culture learning, and dissemination, and technologies in the delivery of
customization. Trends for the future are also described, the change in attitudes towards
hierarchies as companies become more of a global entity and future standards for multicultural
workplaces. Employing the structure of the content developed above, it is possible to identify the
following last part containing information about the subsequent research issues: This signified
the aforesaid elements as prospective research themes and underlined the questions of cultural
sensitivity associated with the usage of the proper strategies of working with employees in the
multinational environment. Thus, the knowledge of cultural differences at work seemed to be
characteristic for the intelligence, which, in turn, strived to develop the harmonious and efficient
work environment for the global employees.
2
Introduction
Culture of a country in terms of hierarchy and power distance influences the way
feedback is given by employees and performance appraised in multinational organizations. It has
been established that these attitudes are part of national culture which in turn affects work
relationships and organizations. Hypothesis 1 describes that employees in PDI culture would
display more obedience to the authority and those who followed hypothesis 2 would resist to
give feedback or challenge the decisions of the higher authorities. On the other hand in Low
Power Distance culture which is characterized by limited control there is likely to be a free flow
of communication between the subordinates and the superiors. This leads to a complex cultural
difference and it becomes a major struggle for the multinational companies who are desirous of
putting into practice of uniform feedback and evaluation techniques throughout the organization.
Power distance is defined as one of Hofstede’s dimensions of culture in which lower powered
organizational members remain obedient to power to individual appropriateness. This dimension
intensively influences the communication patterns of the employees with their bosses,
colleagues, and below reporting individuals regarding performance appraisal and assessment. For
example, when using performance appraisals in a high power distance culture such as China or
India, it will be seen that employees are not used to such practices as bottom-up, or 360-dgree
feedbacks as those practices are found within western organizations. Superiors of such
multinational technical companies have to factor these cultural differences and work towards
developing good and culturally sensitive feedback system. This may range from altering aspects
such as rubrics used in assessment and the manner in which feedback is provided to altering the
proportion of contribution of various sources in arriving at performance ratings. Potential
variations in cultural expectations regarding managers’ role and the structure of organizations
and personnel affect self-evaluation, peer assessment, and general perceptions of performance
management systems. The difficulties that arise are thus regarding how to promote and maintain
certain levels of business processes and then how to address cultural differences. This means for
the cultural intelligence to be adopted within the practices of human resource management,
cultural diversity needs to be embraced and practiced in organizations while at the same time
upholding strict performance benchmarks. In a world where workplaces are experiencing a
higher degree of globalization, it emerges that comprehending and navigating these processes of
cultural dimensions is therefore central to the ability and capacity of an organization to produce
3
the right environment for management and nurturance of its employees in such multinational
organizations.
Cultural dimensions of hierarchy and power distance
Defining hierarchy and power distance
Loyalty and politic, cultural characteristics and employees’ interaction are considered to
be a part of power distance and hierarchy. Structural distinction can be defined as the structural
ordering of people which can encompass the aspects of class, rank, power and jurisdiction among
others in a society or organization. Power distance, adopted from Geert Hofstede’s work,
indicates the level of conformity of subordinate members of institutions /organizations with the
view that power relations are justified and appropriate. In high power distance culture like in
many Southeast Asian countries, Latin American, and African countries, there are great
discrepancies in power distribution coupled with the high level of respect between the superior
and the subordinates and very few decisions are made by the lower ranking employees. This
often leads to a stable but rather rigid work organization where change, creativity and especially
feedback is restricted. In contrast, Country with low PDI such as Scandinavian countries,
Netherlands, and Australia are characterized by low power distance where decision making is
centralized with subsystems given limited power. Here, subordinates are allowed to challenge the
authority of their superiors and decisions are made through consensus – making work
environment creative and active, though, sometimes decision making processes may be
considerably time-consuming due to the committee-based decision making principles of the
company. Hierarchy and power distance serve as the theoretical foundation of the research as
they allow success in the implementation of the structural and procedural changes resulting in
more successful cross-cultural relations between individuals working in international
organizations. Understanding perception of power and authority globally is useful when creating
management, practices that respect and work within the cultural divide, thus increasing
organizational effectiveness and worker’s morale. Thus, understanding such cultural dimensions
may enhance the understanding between people, decrease misunderstandings and hostilities, and
establish more multiethnically tolerant organizations with a line of work that meets the needs of
international skilled workers.
4
Hofstede's cultural dimensions theory
The Hofstede’s Cultural Dimensions Theory is very useful to explain why cultural factors
affect the feedback and other performance appraisal methods that are practiced in the company.
Following Gerpott & Zwicker’s descriptors of the theory, six dimensions that affect
organizational practices and workers’ conduct are examined. However, in cultures of high power
distance the feedback is more centralized and much research suggests that subordinates are often
very reluctant to give upward feedback mainly owing to respect for the authority and threat of
punitive action. Reviews are more structured, and there is far less emphasis on being able to
discuss issues with ones superiors. On the other hand, low power distance culture supports
upward and frequent communication, where assessment and accreditation are learning
experiences. The second dimension that impacts feedback processes is
individualism/collectivism; While in individualistic cultures people are rewarded for the
individual achievements or punished personally, in collectivist cultures, feedbacks are given with
references to group benefts/inconveniences. Innovativeness versus bureaucratisation affects risk-
taking, where innovative cultures are more ready to take risks compared to a bureaucratised
culture that is risk-averse, tough versus soft highlights the power distance and control where a
tough culture exercises a high degree of power distance and control while the soft culture
respects workers’ autonomy and does not control them tightly. Uncertainty avoidance is reflected
in the rigidity of feedback mechanisms and their frequency: it is lower in countries with a high
uncertainty avoidance index as the population prefers more strict and stable patterns regarding
feedback. Power distance relates to a society’s preference for high or low power distance, which
influences performance criteria and feedback. Accordingly, when organizations exercised
Hofstede’s measures, the methods of feedback and assessment of the performance can be
adjusted to correspond with the cultural aspects, thus) improving the results, staff engagement,
satisfaction, and productivity. This level of cultural awareness can be useful for multi-national
organizations intending to establish functional and culturally responsible work environments and
relations across various employees’ national cultures. The enhancement of these dimensions to
reality clarifies enlightening insights about how to develop and apply approaches to global
business to manage cultural issues effectively and achieve long-term success and stability in the
present highly globalized environment.
5
Variations across different national cultures
National cultures have many differences regarding organizational behavior and
management practices which can be explained with the help of cultural values and norms. These
differences are quite noticeable with regard to the concept of hierarchy, feedback and
performance appraisal across different countries. These are in many Asian and Latin American
countries which are known for high power distance; they organize in strict traditional authority
and tend to have formal channels of appreciations and condemnations. Employees do not
challenge their bosses and feedback upholds the status quo of the management’s authority.
Hierarchically low cultures including those of Scandinavia and Netherlands do not support tall
organizational structures and strict boss- employee relationships, prone to formal and mutual
feedback inclusive of group performance appraisal with an emphasize on coaching as contrasted
with control. Power distance defines dramatic contrasts; in particular, while the personnel
appraisals in individualistic cultures focus on the individual accomplishment and independence,
the collectivistic cultures are inclined to maintain order and conformism. While the feedback
provided by people in individualism culture is assertive and encourages rivalry, in collectivism
culture it is given more subtly and is focused on maintaining group harmony. Power distance
determines the freedom of expressing opinions, where cultures high in power distance do not
allow opinions that could be different from the opinions of people in power or bosses are not
allowed while cultures with low power distance allow such opinions. High UAI nations like
Greece and Portugal require organizational feedback to be clear, and offered frequently to avoid
uncertainty whereas low UAI nations like Singapore and Denmark need feedback to not be as
strictly structured. And finally, Hofstede also divided national cultures into long-term oriented
and short-term oriented ones; the former is characterized by such values as maintaining the
reward, perseverance, and thrift, while the latter emphasizes defined result, traditions, and social
duties. It is also crucial for the global organizations to acknowledge these cultural differences to
design appropriate management strategies that are harmonious with cultural values of distinct
regions in order to improve multicultural business communication, organizational outcomes, and
employees’ satisfaction.
6
Impact on feedback-giving practices
Upward feedback in high power distance
In high power distance cultures, therefore, upward feedback will be significantly limited
by the power structure that characterizes such societies. In such cultures, which exists in most of
the Asian, Latin American and many African countries, the channel of communication is highly
impersonal and more often than not, one is expected to restrain oneself and be polite to the
superior. This is due to the fact that most employees are reluctant to give upward feedback
because this is regarded as disrespecting the authority of the superiors or being insubordinate.
Insufficient communication is also a result of fear of consequences such as possible retaliation by
other employees. Lastly there is the lack of upward communication whereby feedback from
subordinates is rare and if given at all, will be in a roundabout way or through other subordinates
or even if it is communicated directly, it will be given in such a way that it will not seem to be a
direct defiance of the superiors. Such a dynamic results in the absence of a flow of information
and ideas from the lower hierarchical levels to the top management, and thus may prevent the
identification of potential organizational issues and improvements. Also, that in high power
distance culture upward feedback is rare and often formal, does not allow for steady growth of
communicative and supportive culture at the working place. However, some organizations
practicing these cultures are today implementing other means of receiving feedback from
employees: feedback through the online anonymous questionnaires or feedback in the form of
the organized sessions. Consequently, it significantly means that such methods may be useful in
increasing the gap between the hierarchy and the presence of such an important type of feedback
as upward feedback. This research has shown that there are numerous cultural aspects that need
to be taken into consideration when analyzing upward feedback in PDCs, specifically those
organizations that operate in highly power distance countries, therefore this paper would be of
great benefit to those multinational organizations that are seeking to establish efficient feedback
procedures that are sensitive to the cultural differences but at the same time ensure open
communication and feedback in the work place. H2: Therefore, when organizations promote
healthy upward feedback relationships free from negativity and aggression, the following
improvements results: Adaptability, innovation, and general performance will increase making
the workplace more responsive.
7
Peer-to-peer feedback across cultures
Cross-generational feedback is cross culture at the same time, as it depends on the values
and expectations concerning people’s interactions in a certain society. Hofstede concluded that in
individually oriented cultures as those of the United States or Australia as well as the cultures of
Western Europe the peer assessments tend to be more bold, unrestricted and performance
oriented. Individual responsibility and performance drive workers to provide detailed and
genuine feedback to peers to improve the latter’s work outcomes and spur rivalry combined with
friendly competition. In these cultures, feedback is normally given in the course of working and
dealing with people and is thus a frequent feature of business. On the other hand, in collectivist
culture, for instance in most of the Asian as well as Latin American cultures, peer-to-peer
feedback will be more of indirect nature, coated with utmost care with a view not to disrupt the
group harmonies. These cultures tend to be relationship-oriented, people will avoid confrontation
and disagreement, and thus feedback will also be given out without having to make a fuss about
it. Sometimes criticism can be constructive but is delivered in a way that is not humiliating or
does not cause tension or delivered in private. This approach might support the work
environment in that it remains encouraging and constructive but it might also lead to a
mishandling of issues for they remain unaddressed or muted. Moreover, it is possible to speak
about high-context and low-context cultures where in the former case the meaning is inferred
more from the circumstances and an individual’s nonverbal signs, so the peer feedback in high-
context cultures might be expressed through an implicit understanding rather than actual words.
This is well understood given that cultural difference poses a real threat to peer-to-peer feedback
programs that multinational organizations seek to implement. In this particular practice material,
the ways of modifying the feedback process concerning cultural values have demonstrated how
one can achieve better communication, coordination, and effectiveness in the team. Other
training programs that can complement increasing awareness of cultural considerations when
giving feedback can also enhance the positive feedback culture since the various perspectives
will assist organizations in enhancing organizational effectiveness in other cultural settings.
Manager-subordinate feedback exchange patterns
Interpersonal communication, specifically, the manager-subordinate feedback exchange
pattern, involves cultural factors that define a culture’s perception of power distance, and
obedience to managerial authority. In high power distance culture, which exist mostly in Asian,
8
Middle East and Latin American countries, remark on the performance by the superiors to the
subordinates is largely commanding as there is a big power differential. Reward is expected by
the superior and subordinates are to be obedient and loyal to their supervisors feedback and
disciplinary measures are formal and bureaucratic. This approach is the opposite of the bottom-
up style in that most of the directions are set from the top-down; there is rarely an open dialogue
or mutual exchange of communication. Individuals at the lower organizational tiers may get
feedback sparingly and in the form of continued subjugation to their superior’s authority. On the
other hand, in Litu, cultures such as in the Scandinavian countries, the Netherlands, and Australia
the manager-subordinate feedback may be more mutual and involve the subordinates in the
process. It makes employees feel useful and valued in the organization hence improving
cooperation among them to contribute to the organization’s goals. Also, in individualistic
cultures, the feedback coming from the managers is most likely to highlight the individual
responsibilities and targets, KPIs. Collectivist cultures involve feedback in manner that takes into
account the group and group welfare without necessarily supporting the individual welfare of the
employees as happens in individualistic cultures; thus, the managers’ feedback fits the
collectivist pattern. Additionally, cross-cultural analysis of uncertainty avoidance impact on
feedback behavior indicated that cultures with high uncertainty avoidance provide precise,
informative, and relatively frequent feedback, because of minimizing the level of perceived risk
and anxiety, on the other hand, cultures with low uncertainty avoidance tend to employ formal
feedback processes as reflecting more of the messengers’ moods. Appreciating these various
feedback communication processes is important for the global organization interested in weeding
out practices that are incongruent with cultural claims in their operations. When implemented
with respect to cultural sensitivity, feedback processes can successfully promote employees’
reciprocal buy-in, satisfaction, and productivity, while celebrating multiculturalism in the
workplace.
Influence on performance evaluation systems
Evaluation criteria and cultural biases
Most of the evaluation criteria are informed by organizational cultures that tend to impact
the evaluation results regarding the employee performance vastly. These biases therefore arise
from the culture that is placed upon activity, what is considered relevant and worthy within the
work domain. For example, in United States and those countries which are individualism
9
oriented like Western Europe the criteria of evaluation are personal accomplishment, self-
generated actions, and self-organization. Assessment of employees’ performance is made more
inclined on goals and objectives that the workers were given, leadership potential, and creative
potential. This focus can be disadvantageous to employees from collectivist cultures, in which
people are encouraged to work in groups, where harmony is most important, and success is
shared. Thus, the performance evaluations in countries with collectivistic cultures, such as Japan,
many of the South and Latin American nations, are more inclined to focus on the role of an
employee in a team, his or her conformity with other members, and his or her œfit. While in the
process they may undermine the dynamics of self-performance from the people from
individualistic cultures where employees may feel their input is disregarded. Also, different high
context and low context culture about performance and communication might not be similar and
the high context culture might value or interpret performance in a different way from the low
context culture. These cultural biases could further be manifested in the performance
assessments thus creating unfair methods of work. To address these biases, multinational
organizations require culturally appropriate method of evaluating the performance that is
sensitive to cultural disparity and values diverse culture and its contribution. It also entails a
process of educating the evaluators on issues of culture and supporting them when it comes to
performance assessment so as to overcome prejudice that is normally significant when carrying
out an evaluation across different cultures, and the specific criteria used should also be sensitive
to cultural differences. Organizations can eliminate bias and the practice of privileging certain
people over others in favour of key workers in other countries.
Self-assessment in different cultural contexts
Research has also found that, globally, there are differences regarding the self-assessment
practices in as far as culture has it that people have different ways of perceiving their
performances. In the collectivistic cultures of North America and Western Europe, self-
assessment is an ideal chance to display performance, prove the subject’s competencies, and
define the directions of further staff’s personal self-education. In these cultures people are
usually encouraged and allowed to be assertive when assessing themselves, and they usually give
a list of their achievements. It is in harmony with cultural beliefs of the ‘rugged individualism,’
where a person is responsible for him or herself. On the other hand, when it comes to self-rating,
employees of collectivistic oriented cultures like Japanese, Chinese, many of Arabic origin, etc.
10
do so with lesser pride. That is why the employees would prefer to describe their
accomplishments in lowest terms and highlight the group benefits, which could be explained by
cultural expectations to avoid self-promotion and focus on the collective gains. This is so
because exaggerating the achievements under these circumstances can be taken as boastfulness
and defectors to the group cohesiveness. Secondly, high-context communication cultures entail
indirectness and subtlety, therefore it may be rather challenging for subjects not to come across
as boastful or overly assertive in their self-assessment. Other aspects that affect self-assessment
practices include culture when it comes to power distance. In high power distance cultures
subordinate personnel may be very cautious when giving their self-assessments that might be
construed as disagreeing with the superiors or as questioning their authority. They might rely on
the managers’ assessments, considering self-evaluation as less relevant or even incorrect.
Organizations should keep in mind the possibilities of cultural differences to develop appropriate
self-assessment techniques necessary for the multicultural organization and give the necessary
tips that would not offend different cultures. This means providing the knowledge about the fact
that in some cultures it is possible to make self-assessments that will not offend the other
members of the team or the whole organization and that the criteria and expectations towards
such activity must be explained and discussed in detail within multicultural frameworks. It will
help the organizations for the modification of the self-assessment tactics in a way that will
facilitate and enhance the development of all employees and their engagement.
Rater behavior and cultural expectations
Culture determines how raters conduct themselves in the evaluative process and the way
employees respond to feedback. In particular, high power distance cultures according to
Hofstede’s theory include many Asian and Middle Eastern countries; and in such cultures, raters
are likely to be highly authoritative, so that the feedback they provide is highly authoritative and
hierarchal. Employees in the subordinates’ position expect getting straightforward, directed from
above commands and assessments, stressing on the adherence to the set norms and orders.
Sycophancy is rife in most of these cultures, and as such raters will rarely give negative feedback
to an individual for fear of causing face loss or humiliating him or her. Rather, they may use
indirect ways of communication or give constructive criticism in a manner that would not
interfere with the suggestions thus retaining the formalism of their relationship and harmonize
their encounters. However, in low power distance cultures including those of the Scandinavian
11
nations and Australia, the behavior of raters is likely to be cooperative. As a result, feedback is
usually offered in the context of participative communication, which, in turn, fosters feedback
exchanges between the raters and subordinates. Also, the rating cultures that prevail in
individualistic cultural contexts that are, for example, the United States and the countries of
Western Europe stress the personal responsibility and personal growth, so the raters concentrate
on the individual performance and individual outcomes. In such situations, feedback can be
defined as direct, specific and developmental feedback addressed to the recipients. On the other
hand, other cultures are collectivist, valuing togetherness and cohesiveness; raters thus provide
feedback that is strictly based on the togetherness and cohesiveness postfixes. They may timid in
the feedback given as they may not want to upset the balance in the group, or get the people in
the group angry with each other. Due to the nature of high context culture, where the
communication implies more than the expressed verbally, raters might have to pay more
attention to the signals within a situation. Some of the critical issues which may be
misinterpreted if the raters from low-context culture fail to understand such aspects include: In
order to control such differences in the behavior of raters, turbulent multinational organizations
must require cultural orientation for the evaluators and inspire them to be more careful, paying
attention to their prejudices and cultural differences of expectations for feedback.
Cross-cultural challenges in multinational companies
Standardization vs. localization of processes
The issue of standardization and localization of processes in multinational firms is one of
the major concerns of global managers who try to achieve the compromise between the strong
coordination and the respect to the local cultures. Standardization also entails an establishment of
similar policies and practices for all the operations and activities done internationally with an aim
of achieving consistency, predictable and cost effective results. It ensures that the corporate
values, brand image, and company’s standards are upheld, and hence it is easier to manage and
coordinate from the head office. That this strategy is useful when we have high degrees of
quality control and regulation is obvious; is distinctive when used in industries such as
manufacturing, pharmaceuticals and the like. Nonetheless, standardization can be risky for
several reasons, which include the failure to address cultural differences at the regional level,
customers’ needs and preferences, as well as business regulations of the specific country. On the
other hand, localization involves adapting the processes in accordance with the local culture
12
factor or the structure of the market and the legal clauses related to the certain country. For
instance, the customisation of marketing techniques related to the local cultures can greatly
improve the market coverage and conspicuousness of brands. Another concept similar to
internationalization is localization wherein HR processes like selection, development, and
appraisal are adapted to reflect the local culture and regulatory framework. But it is essential to
note that localization, if taken to extreme limits, results in fragmentation of operations, an
increase in facilities’ complexity and their cost.
Multinational organizations face the central issue of how to effectively manage and
organize the process of standardization whilst at the same time addressing the processes of
localization. This balance can be attained through the process of global standardization strategy
where major processes must be standardized to ensure uniformity in the global market as well as
local adaptations that may be needed due to cultural differences. Moreover, a successful hybrid
model needs high-quality communication, much leadership, and respect for both an
organization’s goals worldwide and organizational needs in its territories. Companies can align
processes with the use of technology, where the implementation of formalized processes can
occur in a centralized manner to amass efficiency; meanwhile, techniques can be delegated to the
local manager to implement as they see fit. The fine line between the standardization and the
localization creates opportunity for multinational corporations to provide operational
optimization with cultural sensitivity and competitive advantage in the global market with
organizational congruity.
Cultural intelligence in HR practices
Cultural intelligence (CQ) is an important component of HR in MNEs since it helps to
regulate relations with subordinates and create a tolerant organizational culture. CQ incorporates
the knowledge of culture as well as the appreciation of it for SHRM where talent acquisition,
performance management, training, and staff relations are required all over the global vortex.
High CQ in HR practices is founded on the principles of incorporation of cultural characteristics
during the recruitment of employees. This entails Adoption of fair job advertisements, use of
Gender sensitive interview techniques and Hiring committees made up of different people. The
training programs that are implemented as part of cultural intelligence, therefore, aim at
enhancing the organization’s culture sensitivity to improve its employees’ capability to work
13
with the different cultures. This is the reason hiring of employees is made to embrace diversity
talent since it provides equal opportunities for everyone to work and enhance the achievements
of the organization. Looking at the next aspect of the HRM practices, performance management
practice also receives high concerns of CQ since managers who are CQ competent are in a
position of offering performance feedback and evaluations that are culturally sensitive enough to
avoid any form of cultural misunderstandings that may lead to serious conflicts. He noted that
HR practices that are sensitive to cultural differences serve to resolve cultural clash issues with
greater efficacy, and thus increase employee satisfaction and reduce turnover. The processes of
CQ development within HR consist of training and personal and professional growth activities
that include cultural competence training, cross cultural communication, and cultural encounter
practices within the Human Resource domain. This means that the HR specialists should have
awareness of the trends and changes of the cultures all over the world to reflect it in their work.
Using the available technologies, and statistics collection, there is information on culture that can
be used to influence the way the HR addresses the employees. If mechanisms of CI are
integrated into the system of HR management, the organization will benefit from more efficient
relations between the leaders and subordinates, improved international cooperation, and
increased opportunities to find and hire highly qualified employees in different countries. Hence,
it can be noted that higher CQ in HR practices assists the organization to engage effectively in
operations in the global market and apply innovative strategies for the organization’s competitive
advantage.
Managing diverse cultural expectations
The task of creating friendly and productive work environment in a multinational
organization entails handling of cultural expectations, which is a herculean but very useful
activity that requires both a systematic and a delicate touch. Thus, different cultural values are
manifested in various ways at the place of work in terms of decision making, leadership and
communication, and conflict solving. Managers must initially ensure that the workers accept
cultural diversity as part of organizational life before they can manage this aspect. The initial
steps toward this end are educational programs in cultural sensitivity, which make the employees
aware of the different cultures, promote understanding, and reduce bias. It has been noted that
setting a good cultural identity is something that can only be done through the leadership.
Managers need to be culturally competent and this is because cultures prefer different forms of
14
leadership, communication, reward and punishment, decision making and control. For example,
to communicate in High power distance culture, the managers will be required to ensure that they
provide for authority on one hand, but at the same time allow people to share their views and
ideas on the other hand, as compared to in the low power distance culture the leader will need to
ensure that a lot of people are involved in the decision making process. Multimedia, major and
minor language difference, and other aspects of nonverbal communication should be followed
suit by starting up organization polices of communication that reflect them. This might involve
giving an interpreter service, avoiding the use of culturally sensitive words and phrases and
being careful on the movement of hands and legs. Other forms or organized feedback also enable
organizations to easily determine and solve cases of culture clash. The application of diversity at
workplace especially the formation of different groups of people with different cultural ends will
help improve on the opportunities and creativity and on the issue of problem solving as well.
The cultural differences are not insurmountable and cross-cultural trust and respect can
be created if cross cultural cooperation fostering activities are carried out through task formation
in cross cultural teams. Other factors are also relevant here and include the ability to; Modify
working schedule and other organizational processes to reflect the cultural diversity of the
employees; observe different working days, holidays as well as dress code among other
measures. This means that in order to incorporate cultural diversity in the organizations, there is
a need to assess the effectiveness of the strategies used from time to time, and seek help from the
employees working on the matter, also insights about the existing or developing cultural
differences should be known. If MNCs learn to manage different cultural expectation that exists
across the world; it will be able to unlock the greatest talent within its global human capital
assets, foster innovation, and sustain itself in the highly competitive global market.
Adapting feedback and evaluation processes
Culturally sensitive feedback mechanisms
The first issue pertains to culturally sensitive feedback mechanisms that are crucial in
multinational organization to guarantee feedback is appropriate, acceptable and useful in various
cultures. Many of these mechanisms bear in mind diverse cultures and communication patterns
that characterize both the processes of giving and receiving feedback. In high power distance
cultures the feedback must be very polite since people working at companies address their
15
superiors with so much respect, and the feedback may be done in a roundabout way because to
hurt their face. This could mean that the way feedback is delivered is highly structured such that
feedback is always given in a way that preserves the subordinates’ dignity, and solutions focus
feedback is given. I include the degree of directness of feedback whereby it is received in
countries with low power distance values as compared to higher power distance ones; hence, the
nature of feedback stimulates sharing of information between the superordinate and subordinates.
The ability to identifying these differences is important in ensuring that there is no warrant for
misunderstanding when giving feedback. In addition, people in individualistic cultures expect to
receive feedback that highlights their accomplishments and ways that they can develop while
those in collectivistic cultures expect critique that takes into consideration the effects on the
entire group and the group’s success. To overcome these cultural differences in the
organizations, the feedback systems about individual and the team performance levels can be
incorporated. It will be important to provide training for managers to increase their
understanding of cultural respect when delivering feedback to employees, yet at the same time
conveying important messages that might help the latter to build new professional skills and
progress. The lack of cultural practices also means that feedback received using anonymity tools
may also be free from bias and distortion, as employees are he or she may feel threatened to give
honest opinions. Thus, one can use technology for getting and sharing the feedback in a
culturally sensitive manner with the help of digital feedback platforms and the system of 360-
degree feedback. The given platforms can be adjusted to reflect the cultural component the
questions and formats used, which helps make the feedback more relevant and helpful. In this
way, tailored feedback systems can be introduced in the context of organizations to build a
climate that recognizes their cultural differences, which in turn can have a positive impact on the
employees’ morale, motivation, and productivity.
Training for cross-cultural performance management
In multinational organizations, the most significant factor that can influence the
productivity of an employee is their performance management system, and hence, cross-cultural
performance management training is therefore inevitable in the professional development of
multinational organizations’ employees. Cultural training prepare managers and employees to be
knowledgeable and be sensitive to cultural barriers likely to be encountered in work related
issues such as performance indicators, communication and appraisal. Such training starts at
16
Cultural sensitivity; creating the awareness and appreciation of the cultures of other persons in
the workplace. Such basic knowledge minimizes prejudice and increases understanding, which
are critical in multicultural relations. Training should include certain cultural aspects like
Hofstede’s cultural dimensions theory which would give the trainers an understanding of the
cultural antecedents of behaviour in workplaces. Examples and simulations would also be useful
in retention since actual incidents and acting can be used to refine part performance based on the
cultural background. Further, training needs to cover typical difficulties that occur during cross –
cultural performance management like the contrast of power distance, communication of reward
for superior performance, and how to self – motivate or how to motivate employees in other
cultures. For instance, managers should be equipped with ways of handling power distance high
and/or Low Countries with superiority without offending the subordinate. Cultural awareness
regarding high-context and low-context communication makes the managers to provide
feedbacks and instructions more effectively. Besides, flexibility and adaptability of the
performance management methods should also be highlighted during the training. Supervisors
need to accept that change is necessary and make adjustments depending on the specific cultural
background for miles that they employ so as to foster better means of performance management.
Another strategy could be to augment the theoretical concepts and ideas with examples and
lessons learned from cross national management business cases that have worked effectively.
This is because training and development should follow up with subsidies and assistance like
cultural competence activities, webinars, and coaching to enhance training continuous
improvement. Such a positioning strategy also enhances the company’s capability to compete in
the global marketplace and boosts the satisfaction and productivity of its employees.
Technology-enabled solutions for cultural adaptation
Another important area that is resolved with technology solutions is the aspect of cultural
intelligence that characterizes the employees; the technology provides the adequate tools which
are necessary for the provision of the discussed difficulties of cultural difference as well as the
development of the corresponding intelligence in multinational companies. The solution set
involves the use of digital work collaboration tools, communication mediums and the AI-based
solutions which are capable to operate in the culture of assimilation and synthesis. Popular
messaging applications like Slack, Microsoft Teams, and Zoom provide real-time interactive
messages that can be delivered synchronously or asynchronously depending with the
17
organizational culture and geographical locations of the teams. Some of the activities, for
instance, the translation services and choice of the settings guarantee clarity in the provision of
information in a way that is unlikely to cause confusion and hence making the environment
carried joined. Besides, the organizational communication tools like Trello, Asana, and Miro
promote the virtue of working as a team during the projects regardless of cultural barriers.
Concerning AI applications, there are many applications such as natural language processing and
sentiment analysis tools that can decode cultural differences while conveying the message or
giving feedback or receiving feedback thereby training managers and employees on what would
culturally acceptable messages to communicate and receive. These platforms include recorded
workshops, quizzes, and training with realistic scenarios and live examples for the employees’
training and development to boost cultural competence at their own convenience. Mentoring,
teaching, and training through game based, augmented and VR environment can expose the
employees to different cultural situation and make them culturally sensitive. Furthermore, the use
of analytics and human resource information system (HRIS) can help in monitoring the culture
and or pattern of culture in the organization over time with view of coming up with right
strategies for the HR department. Such systems can track productivity, participation, and
feedback of employees and Subgroups based on different cultural predicates to alert the
concerned HR departments as to where cultural strains may occur. Technology-enabled solutions
introduced into organizations enable the practices to improve on cultural adaptation, diversity
issues, and dynamics of the workforce.
Future trends and recommendations
Evolving attitudes in globalized workplaces
Current globalized workplaces have led to new social perceptive about the cultural
differences, and in turn, those differences are remodeling organizational relations. Globalization
in the present generation has made business go global hence implying that the current teams that
we have in business are culturally diverse hence implying that the current organizations must
embrace new ways of thinking. The increase in consciousness of the benefits of or diversity in
generating solutions and ideas is one major shift. It is a process of change where organizations
are transforming the perception of cultural diversity from a mere social accountability issue
and/or ethical issue towards competition and are on the verge of perceiving cultural variations as
one of the key sources of competitiveness. Studies showing that with proper leadership, people
18
from diverse groups work more effectively than people of the same type bear this change. New
generation also brings new perception about diversity, whereby every person in certain
organization has to have equal opportunity of enhancing his or her skills. This means that the
policies and practices put down should consider the impartiality processes, equality, and
diversity of employees. That is, such things as telecommuting, family-friendly benefits, and
diverse cultural management development are increasingly being implemented. Cultural
intelligence has gained considerable attention as a required skill for every organization’s
personnel. CQ refers to an individual’s capacity to comprehend, appreciate and accommodate the
ways of functioning of people from other cultures and it is very crucial for teamwork. There is
enthusiasm in organizations' toward CQ training and development by providing useful tools to
their employees to work effectively in the multicultural environment. The recent arrangement of
working from home and virtual teams has made cross-cultural communication more crucial than
ever. Since employers promote more and more frequent contacts between employees of different
cultures in different forms, the problem of communication strategies that will help overcome
cultural barriers becomes acute. Changing professional mindsets of employees in the
multinational environment push the management and employees towards multicultural
communication. These changes can help organizations to realize the true potential of their
diversified employees, encourage creativity, increase efficiency and secure the long run
development in the global environment that is steadily turning into more and more competitive.
Best practices for multicultural organizations
The culture of the multicultural organization should be courteous civil and dynamic with
an emphasis on the utilization of cultural diversity for the improvement and kineticism of the
organizational performance. Cultural competence on the other hand is enhanced by trainings and
educations. This means that leaders and staff needs to be able to understand, appreciate and
incorporate different cultural perceptions. Cultural awareness and practical communication skills
as well as conflict resolution skills could be learned in workshops and e-learning modules and in
simple and complex models of virtual reality. Having good and proper policies and procedures
for the employees that will also accept the transgenders is also important. This includes equal
employment opportunity and anti discrimnation, cultural relevance of compensation and
employee benefits, and flexible work schedules. Accepting and celebrating religious and cultural
holidays and providing flexible working hours that are closer to different cultural standards
19
increases the level of employees’ inclusion and their levels of happiness. Communication
approaches also are very important particularly when dealing with the public. Management of
companies should encourage the free flow of information and should also avails means through
which the cultural ideas of employees can be aired. This could possibly be done through ERGS,
Diversity Council, Cultural festivals, and fairs, etc. There is also another aspect that refers to the
opportunities of creating a feedback culture where the workers may provide suggestions and
opinions on the working of the organization and the meeting of its policies, without the fear of
being punished. It is thus important that in order for change to happen in diversity and inclusion,
leadership commitment is then required. Thus, the leaders should also demonstrate some modes
of conduct participate in diversity activities and see to it, that this concept of inclusion is also
carried into their teams at workplace. Goals and bonus to diversity and inclusion outcomes can
do this. Another aspect that should be included in organization operation is an application of
technology on intercultural communication. Some of the applications or resources of technology
in communication include video conferencing, translation equipment and services and
teleworking equipment or facilities. For development to remain constant there is need to assess
effectiveness of diversity and inclusion measures and shift them in response to feedback and
altering cultural trends. The various policies and strategies that are laid down in this paper may
be of help to multicultural organizations as they strive to compete and excel in a diverse global
environment because they will have guaranteed a work environment that will embrace human
dignity and potential.
Research directions for cultural impact
Effective cultural impact studies are a central facet of the organization’s management of
cultural diversity which includes the organizations should focus on many important areas to
assist companies to improve understanding and practice. Expatriate adjustment and acculturation,
CQ and team and organizational success are significant and relevant topics that met the criteria
of each category of 21 st Century Skills mentioned in this paper. Unfortunately, intercultural
teams and cooperation between members with different cultural backgrounds remain a weakness;
however, one must understand that it is possible to learn how the cognitive, motivational and
behavioral aspects of CQ influence cooperation, creativity and other aspects of the interaction in
the given teams. Other equally important research ideas are those that have to do with the
establishment of CQ and its relation to career advancement and leadership researches that are
20
done in the long-term. Cultural processes in the virtual and, in particular, in the environment
related to remote work seem to be very important. Public and employees should know that
culture affects work remotely, interaction, and teamwork since remote work’s usage enlarges.
The research can as well determine the required degree of technological media for crossing
cultural system and addressing adequately the problem of virtual multicultural team. Moreover,
future studies need to be carried out for developing the link between corporate culture and
diversity/ inclusion programs. This can also entail the investigation of factors like the
assertiveness of a top-down instead of mesophilic corporate culture; innovative as opposed to
conservative corporate culture and their impact on the administration and outcome of diversity
affairs. Such work can depict a comparison of the various sectors and nations, consequently
portraying the part of the context in such activities. Therefore, the dynamics of culture can be
studied only through gender, age, and other socioeconomic factors of a population. It may help
companies devise much better strategic and effective attempts for diversity and inclusion
meaning there is still a rather clear absence of research linkages that connect leadership with
inclusive cultures. They could be specifically in the areas like leadership style and behaviour and
its effects on PS and Diversity in organizations. Information searches related to the inclusive
leadership competencies could also be beneficial when it comes to determining the beneficial
practices related to the leadership development programmes. It could help the organizations in
handling cultural difference, increasing the workforce engagement and effectiveness in the
multicultural world by expanding the best practices’ pool.
Conclusion
The influences that power distance has on employees’ feedback and performance
appraisal are vigorous and multifaceted in MNCs which indicates that this research has
highlighted the significance of culture awareness in HRM and above all in identifying
appropriate solutions that are relevant to different cultures globally. P-O Liberality and H-
Initiation, latent as different dimensions of culture, unequivocally affect the manner in which
employees provide and receive feedback, contribute to the processes of evaluation and
assessment, and perceive the relatively fairness and efficiency of performance management
systems. Thus, one could define the management of cultural differences as one of the most
intricate tasks of International Human Resource Management that comprises global
standardization and cultural sensitivity as two major aspects, the understanding of which is
21
critical for effective management of the cultural differences. The study finds that for feedback
and evaluation systems to thrive in multicultural contexts, cultural sensitivity has to be supported
by the organization’s fundamental goals and objectives. The need to create culture intelligence
within HR practices as well as the promotion of diversity in organizational culture as important
directions for cross-cultural management. This practice material established that as organizations
are extending their operations to the international market the sensitivity to handle these cultural
implications assumes more and more cruciality to the success of the enterprise. The prospect for
the multinational companies isn’t in their ability to adapt to the shifting global trend of thinking
and to incorporate relevant strategies for multicultural management into their managerial toolkit,
and in the ability to learn from multinational research and theory and improve these strategies
over time. It is only imperative that to get the best employee feedback and performance
evaluation systems which are suitable for MNEs it is crucial to understand cultural differences
embrace communication irrespective of status and set performance evaluation mechanisms that
are standardized yet sensitive to local contexts. Understanding and embracing culture reduces
conflicts in the multinational organizations and leads to high productivity and high employee
turnout due to high satisfaction of organizational culture in the organizations’ employees.
