QUESTION

Case Study 1: Managing Across Cultures
You are the HR manager in a large multinational company. The corporate office is headquartered
in the United States, but it has regional offices in many different countries around the world. In
the United States, employment discrimination based on sexual orientation is against the law.
However, in many countries that the company operates in, sexual orientation discrimination is
not prohibited. In some countries, homosexuality is prohibited by law.
For this memo, answer the following questions. Note: you should start your memo by clearly
identifying your recommendation.
1. Should the company set a world-wide policy regarding employment discrimination based
on sexual orientation? (this is your recommendation – yes or no) In other words, should
the policy be location-specific or the same world-wide?
a. Why have you made your recommendation?
b. What are the positive and negative impacts of your decision? (eg. in society, for
the business, for employees)

2. Would your recommendation change if the business model of the company switched
from a multinational company to a global company?
a. Define the differences between a multinational and global company.
b. How might the business model change the way the organization is managed and
the policies it sets?

ANSWER

Subject: Human Resource Case Study
Recommendation and Rationale. The company should set a worldwide policy that addresses
employment discrimination on the basis of sexual orientation. Discrimination on the basis of
sexual orientation can be considered a violation of human rights (Carpenter, 1). In this regard,
practicing such a vice negatively impacts employee welfare in any given organization. In this
regard, the company should strive to create an ample working environment that can be
considered safe and all-inclusive for all workers across the board. Employees ought to feel
secure and cared for by the organization, which will eventually Foster productivity and Growth.
In this regard, the company should strive to care for all of its employees regardless of their
sexual orientation. Therefore, a worldwide policy should be implemented to ensure that all
employees are protected from discrimination regardless of the country they work in.
Probable Impacts. The decision will likely have positive and negative impacts, even though the
positive ones outweigh the negative ones. Regarding positive impacts, implementing a
worldwide policy regarding discrimination on the basis of sexual orientation is likely to boost the
company's image in multiple ways (Lennartz et al., 2). Implementing such a policy would paint
the company as an organization that is dedicated to upholding inclusion and diversity. Having a
positive Image from a global perspective is good for productivity and profitability. Implementing
the policy is also likely to help create an all-inclusive and safe environment for the employees.
Creating an all-inclusive and safe environment makes employees more motivated, which is good
for company performance. Implementing an all-inclusive policy can also help attract and retain
talented employees who perhaps value inclusion and diversity in fullness. One of the main
challenges that may result from making the decision is that the company may face legal
challenges in territories where the law protects discrimination on the basis of sexual orientation.
The company may also face cultural challenges in territories where practices such as
homosexuality are not welcome.
Multinational versus Global Company. A multinational company can be defined on the basis
of its operational dynamics. A multinational company primarily operates in more than one
country and customizes its services or products to meet the standard of each local market
(Sudirjo, 2). It is important to note that a multinational company usually has a decentralized
management structure, with each represented region having operational autonomy. On the other
hand, a global company operates as a single entity in various parts of the world. A global
company has centralized management properties, with elements such as decision-making being
implemented at corporate levels. In this regard, global companies also have similar products
across all their existing and potential markets regardless of all prevailing factors.
How the Business Model is Likely to Impact Operations. In the instance where a business
model of the company is switched from being a multinational company to a global one, the
decision-making dynamic would be flipped. In this regard, the decision-making process would
be centralized as opposed to what happens when it operates as a multinational company. When
such a change happens, it becomes easier for the company to implement a worldwide policy in
relation to Employment discrimination on the basis of sexual orientation. On the contrary,
though, such a move would result in diverse cultural challenges on the basis of the various
judicial jurisdictions that apply in each of the countries in which the company operates. For

instance, the company would face challenges implementing such a policy in countries where a
practice such as homosexuality is highly prohibited.