In order to understand some of the contemporary issues that leaders face in the new era. It is important to understand the culture. Opening of markets to free trade and making people work in diversified environments has created an issue of managing people. Prior to opening of market the management structure was able to sustain in homogenous work environment. However in the new era this homogenous work management will no longer be beneficial. There is a need to understand the people coming in from different cultures. People management has essentially become more challenging. For managing of people from different culture there is no one single right approach. Hence a number of culture models have been implemented in order to understand the fundamental dynamics of the different societies across the spectrum (Hofstede, 2011). The management of people from different cultures within the organizational framework is imperative in order to cater to the global consumers. Hofestede model is one attempt in order to understand about the different societies, which factors in six major factors. Power distance index is used to measure the hierarchal control of traditional organizations. Individualism is professed in some cultures while other cultures follow collectivistic principles. Indulgence factors, long-term orientation, uncertainty avoidance index and masculinity factors are considered in this model (Hofstede, 2013).
Using this model as a formula the companies should develop specific aspects that are in line with the objectives of the company.
Beijing ECCO trading company is considered to be one of the best distributes of the famous Danish brand ECCO. Hence there is a need to understand the different culture rationale in order to maximize productivity. In this particular scenario being a Chinese distributor the company needs to understand the different types of cultures in societies that are not homogenous anymore. There is a need for an eclectic workforce in order to increase efficiencies and take into account the different perspectives. This can be reflected in the following practices. The company is currently a market leader and if it wants to expand its operations to other geographical zones and to maintain cordial relationship with the international investors it needs to focus on the following aspects.
Recruiting: Modern Chinese enterprises are operating in needs to hire personal in different scenarios. If the company is planning to expand operations it needs to hire multi cultural resources (Hofstede, 2013). They should understand the fundamental objectives of the company. If the company is planning to expand operations to other countries it needs to factor in Hofestede culture model and hire right personnel.