Multicultural Workgroups at KFC Corporation Essay

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Management of Multicultural Workgroups by KFC Corporation

Headquartered in Lousville, Kentucky, KFC Corporation (hereinafter alternatively "KFC" or "the company") was founded more than 70 years ago for "Colonel" (an honorary title) Harland Sanders with the proceeds of a Social Security check. Since that time, the company has grown to include more than 18,000 KFC restaurants operating in 155 countries around the world (About KFC, 2016). Not surprisingly, the company is frequently confronted with the need to effectively manage multicultural workgroups. To determine optimal approaches, this paper provides a review of the relevant and timely literature concerning these issues to develop salient recommendations for the top management of KFC concerning effective approaches to the management of multi-cultural workgroups. A summary of the research and important findings concerning the effective management of multicultural workgroups are provided in the conclusion.

Review and Analysis

The organizational changes that have been needed in recent years to remain competitive were largely the result of shifts in economic conditions that have forced companies of all size and types to develop multicultural workgroups in place of their formerly homogeneous workforces (Wolf & Macharzin 2009). In this regard, Wolf and Macharzin (2009, p. 4) report that, "The trend to multicultural workgroups emerged as a reaction to changed economic conditions forcing organizations to develop new structures in order to minimize costs and maximize flexibility." Moreover, multicultural workgroups have been created by organizations in an effort to respond to the cultural diversity in the environments in which they compete or to provide well-rounded innovative solutions to organizational constraints (Bachman 2006). As Bachmann (2006, p. 722) points out, on the one hand, "Workgroups composed of people with different cultural backgrounds hold a great potential for more innovative and higher quality solutions to international business problems" but on the other hand, "It is these same cultural differences that pose the greatest challenges for organizations."

Therefore, one of the main outcomes of these recent trends has been a corresponding need to develop effective management methods for multicultural workgroups (Wolf & Macharzin 2009). For example, Wolf and Macharzin (2009, p. 5) add that, "Multicultural workgroups present challenges not only to the organizations that use them but also to scholars that try to identify the pitfalls of these groups and develop solutions how to manage them successfully." Notwithstanding the challenges that are involved, though, it is possible to develop timely recommendations for optimal approaches to managing multicultural workgroups by identifying and analyzing the success factors of organizations that have achieved these goals (Wolf & Macharzin 2009).

Until fairly recently, much of the scholarship concerning the effective management of multicultural workgroups was focused on a single aspect of cross-cultural differences. For instance, Bachmann (2006, p. 721) emphasizes that, "The literature on the functioning and effectiveness of diversity-based workgroups tends to take the single perspective of exploring the effects of cultural or demographic or functional diversity on workgroup performance." Certainly, each of this areas of inquiry will provide international managers with some indication of the constraints that might be involved in effectively managing multicultural workgroups, but a more holistic perspective, however, can provide managers with the information concerning the values and priorities of the different cultures that comprise their workgroups in order to formulate effective management practices.

For example, expectancy theory, reinforcement theory, Maslow's theory of the hierarchy of human needs and Herzberg's intrinsic and extrinsic motivational factors all provide some indication of fairly universal human wants and needs, but it is also important to take into account salient cross-cultural differences that can affect the effectiveness of management practices in other cultures. In this regard, Metin and Kizgrin (2015, p. 107) note that, "International [fast food restaurants that] want to be successful in global markets have to understand how other cultures differ from their own culture. This is only possible with understanding of elements that constitute the culture such as material culture, language, religion, education, aesthetic values, behavior and values," including those cultural aspects identified by Geert Hofstede in his five main cultural dimensions which are discussed further below.

With more than 4,500 KFC outlets at present, China has become a major market for KFC in recent years and provides a useful example of the cross-cultural differences that can adversely affect effective management practices with the parent corporation being American. The only cultural dimension between the U.S. and China that does not have major differences is the masculinity dimension (defined as "The fundamental issue here is what motivates people, wanting to be the best [Masculine] or liking what you do [Feminine]") (Hofstede 2016).

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All of the other cultural dimensions between China and the U.S. are characterized by major differences in Hofstede's ratings as set forth in Table 1 below.

Table 1

Hofstede's cultural dimension ratings for the U.S. and China

Cultural Dimension U.S. China

Power-Distance 40 80

Individualism 91 20

Masculinity 62 66

Uncertainty Avoidance 46 30

Long-Term Orientation 26 87

Source: Based on bar graph in Hofstede (2016)

As can be seen in Table 1 above, Hofstede rates the U.S. and China 40 and 80, respectively, on his power-distance dimension (defined as "the attitude of the culture toward these power inequalities amongst us"), suggesting that workgroups comprised largely of Chinese employees will expect and appreciate receiving directions from superiors compared to American workers who will likely want more of a voice in their day-to-day work duties. Likewise, the major differences between China and the U.S. on Hofstede's rankings on the individualism dimension (defined as "the degree of interdependence a society maintains among its members") of 20 and 91, respectively, indicate that American expatriate managers in China would expect employees to be self-starters who take the initiative, but China's rating on this dimension reflect a more collectivist approach to achieving organizational goals in which everyone is responsible and accountable for results.

With respect to the uncertainty avoidance dimension (defined as "the way that a society deals with the fact that the future can never be known"), China's rating of 30 versus the U.S. rating of 46 means that Americans place a higher priority on innovation and change compared to their Chinese counterparts, and prefer a workplace that is not governed by numerous rules. Finally, the differences between China's rating of 87 and the 26 received by the U.S. on Hofstede's long-term orientation dimension (defined as "how every society has to maintain some links with its own past while dealing with the challenges of the present and future") indicates that expatriate American managers working in China are more interested in achieving quick results compared to their Chinese counterparts who are more likely to adopt a long-term perspective towards achieving their goals.

Taken together, it is clear that significant cross-cultural differences can introduce management problems that might otherwise be unexpected. Despite the challenges that are involved, though, these cross-cultural differences can be leveraged to produce greater cohesion and collaborative practices that can result in increased productivity and profitability (Earley & Gibson 2002). A growing number of fast food restaurant chains, including KFC, how not only tailored their menus to match local preferences, they have carefully studied the cultures in which they compete in order to develop more effective management practices (Metin & Kizgrin 2015). Given the company's far-flung operations in 115 different countries, it is reasonable to posit that this level of analysis requires a significant investment of organizational resources that must be justified by positive returns.

To date, KFC has enjoyed significant returns on its investments in better understanding the different cultures in which it competes in order to provide its internal and external customers with culturally appropriate offerings, and the jobs the company offers in many of its venues are highly sought after by young people, especially in developing nations where unemployment may be rife (Allan & Bamber 2008). While many young people in the United States disdain so-called "McJobs" (relatively low-paying jobs in the fast-food industry), these positions frequently attract the best and brightest young people in other countries (Allan & Bamber 2008). This means that KFC stands to gain a great deal through its investments in understanding these different cultural settings, and the company's rapid expansion into foreign markets is reflective of these investments (Allan & Bamber 2008). It is equally clear, though, that despite the commonalities in human wants and needs described by Maslow, Herzberg and other developmental analysts, there is no "one-size-fits-all" management approach that will work equally well in all cultural settings, making the need for culturally responsive management practices an overarching organizational requirement.

Conclusion

The research showed that KFC Corporation is headquartered in Lousville, Kentucky and was founded by Colonel Harland Sanders more than 70 years ago. Since that time, the company has expanded its operations and now operates more than 18,000 outlets in 155 countries. The research was also consistent in showing that KFC is confronted with some significant challenges to developing culturally appropriate management practices in these countries based on the profound impact.....

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