Implementation of Value-Based Management in Multinational Organizations Facing Cultural Differences
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Abstract
Value-based management is increasingly being introduced as an important approach to improving organizational performance and culture. However, its implementation faces major challenges, especially in multinational organizations operating in different countries with different cultural perspectives. This article discusses the impact of cultural differences on the effectiveness of VBM implementation in multinational organizations. Differences in cultural values, such as collectivism versus individualism, as well as the way decision-making is influenced by hierarchy or egalitarianism, can hinder the consistent application of Values-based management across operational levels. For this reason, it is important for organizations to be aware of any mismatches between their core values and local cultural norms. This research suggests that organizations should be more sensitive to design a value-based management implementation that is flexible and tailored to the needs of the local culture without compromising the core principles of the company. Open communication and effective feedback mechanisms are needed to ensure the values are well received and implemented. Through careful adaptation and employee involvement in the change process, organizations can optimize the implementation of value-based management that can improve long-term performance and create a harmonious organizational culture across multiple locations.
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