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COMMUNICATION BARRIERS IN A CROSS-CULTURAL

MULTINATIONAL COMPANY (TOYOTA MOTORS,


PAKISTAN): A CASE STUDY
Faheem Akhter1 2
Abstract
This case study is about managing communication barriers amongst staff at Toyota
Motors Pakistan. Toyota Motors is one of the world's leading automobile manufacturing
companies. Over the years, the Japanese automaker had built up a reputation for
manufacturing reliable automobile. Toyota's products are famous for quality amongst their
customers in Pakistan.
The factory of Toyota Motors Pakistan is located at Karachi, the Capital Hub of
Pakistan. It is having staff mainly from different provinces, cities and parts of Pakistan and
executives from Japan, Thailand and Singapore and Pakistan. This case study describes the
problems the mentioned company faces in managing the issues of their staff, the gap in
understanding of directives issued by the management and implementation of directives by
the local staff and labour etc.
To ensure defects free finished product, Toyota Motors set up quality assurance
systems across various sections, including development, purchasing, production, managing
Human Resource and training of their outfits. However being an MNC having major labour
chuck of local populous; the management uses different techniques to communicate the
market trend and requirement down to grass root level. This case study is carried out to
highlight the human communication issues being faced by the management in a cross cultural
environment and few remedial measures are also suggested at the end. Focus of this case
study is to simplify the essential distinctiveness of the problems during communication
between different cultural people working in a multinational company (Toyota Motors,
Pakistan).
1 M.Phil Scholar; Department of Public Administration; University of Karachi; email faheem8687@yahoo.com
2 Paper was written and submitted as an assignment of Business Administration

Introduction
Multinational organization tends to have more cultural combinations as it has people
from different regions and countries; therefore it likely to have more differences and conflicts
amongst the working personals due to their attachment with different culture. In this study
only one problem i.e. communication problem, arising in an MNC due to existence of people
from different cultures will be discussed.
It is important in all communication that the message is properly sent by the sender
and received by the receiver equally god (Greenberg, 2004). Minimizing of physical and
psychological barriers especially in cross-cultural communication is more important as the
chances of error increase in this case.
There are also significant differences across cultures in the ways and the extent to
which people communicate (Jay Kandampully, 2001). Efforts would be made through this
case study to find out and analyze the vital uniqueness of cross cultural communication
problems through an analysis of real cases in daily communication amongst different cultural
people working in a multinational company (Toyota Motors, Pakistan). Problem they face in
communicating their point of view and understanding others would be seen here with some
suggestions at the end to improve upon as well. Managing the effective communication
amongst the colleagues within an environment where people from different culture work is
always been a point of concern for leading company. To improve upon and have a cordial
working atmosphere is must to get the maximum output. Through this study an effort will be
made to find out the gray areas of the communication in a cross cultural environment,
analyzing the means to highlight the weakness and then suggesting measures to improve
upon.

Issues to be discussed

To identify the importance of effective human communication at Toyota Motors that


helps it make a reputed brand in Pakistan.

Analyze the working environment of Toyota Motors Pakistan.

To analyse the data collected on the topic mentioned above for its validity.

Understand the communication problems amongst the employees being faced in


Toyota Motors Pakistan.

Examine the reasons for difficulty in communication.

How effectively Toyota Motors Pakistan is managing communication barriers in a

multi-cultural environment.
To conclude by giving Recommendations for betterment and future prosperity.

Methodology
This research approach is an in-depth explanatory single-case study. The reason for
selecting an explanatory rather than an explanatory research design is the practice being
carried out in Toyota Motors to resolve the day-to-day human communication issues arising
in a cross cultural environment. For this reason, an explanatory case study seems
appropriate, as the aim is not to test theoretical propositions, but to highlight the successful
practices in vogue which may be helpful to other industries and organization in bringing
better in the same area.
The study will be qualitative, efforts would be made for qualitative data collection
through primary and secondary sources, using website of the organization under study,
through review of literature available on the subject and the reading material provided during
course of study.
The reason for selecting such organization is to analysis and examines the crosscultural communications dynamics that arise in a huge automobile industry.
Data Collection and Analysis
The collection of data was not an easy task to do as the company did not allow access
everywhere and to every individual as a matter of company policy. Effort was made to collect
data through interview of different people; for this purpose I conduct a total of 6 interviews
which were main source of data collection. These all interviews were of the people having
different tires in the organization, like (i) General Manager Operations (ii) Manager
Administration, (iii) Deputy Manager Security and Surveillance, (vi) Supervisor Production,
(v) Helper Electrical Department and (vi) Supervisor Staff welfare Canteen. The interviews
were conducted between April and May, 2014. The interviews were held in a semi-structured

manner and in real working environment. The average interview time with each member was
approximately 15 minutes to 20 minutes. In addition to the primary data, data is also
collected through internet, literature available on the subject and the course material issued to
the students.
In order to analyzing the collected data first the interview transcriptions, personal
notes, and secondary data had to be classified and organized according to some key
dimensions like department, working affiliation of the interviewing employees, position in
the companys hierarchy, assigned role in the project. While in the second step the data was
coded keeping in mind the main issues to be discussed in the research. The third step
consisted of integrating and interpretations of the data and documenting the case for drafting.
The identification of critical issues of the communication problems in a multi-cultural
organization was guided with the help of observations and data collected which helped this
research to a logical conclusion.

Importance of effective human communication


Effectiveness of communication in any organization cannot be ruled out. It is
significant in all communiqu that the message is correctly sent and received by the sender
and the receiver respectively. (Greenberg, 2004). Minimizing the communicational barriers
in cross-cultural communication is more important as the chances of error increase in this
case.

Working environment at Toyota Motors Pakistan


Toyota Motor is famous for its ability to produce automobiles of highest quality in
Pakistan having an affordable price for their users, thereby providing a worth for cash to the
customers. This quality can be attributed to its innovative production. The quality production
is achieved having healthy, clean, pollution-free working place where work-force performs in
a conducive, cordial and tension free atmosphere.
The Toyota Motor struggles for maintainable development through technologies and
practices that permit the environment and economy to co-exist in synchronization (Toyota,
2014). Inconsiderate pursuit of economic development destroys the environment and also
lowers the eminence of life for future generations. The environmental commitment of Toyota

Motor reflects powerfully by actions at the forefront of activities that help preserve and
improve the environment, building close and cooperative relationships with individuals and
organizations involved in environmental preservation. Toyota Motor also unceasingly
refining the companys own environment management system and discouraging events that
have a negative impact. Toyota Motor is an ISO 14001 and 9002 certified company (Toyota,
2014).
Few of the actions taken are reflected bellow:

To recycle water used for plantation, a wastewater treatment plant has been installed

with an investment of Rs.50 million, it also helps in providing clean environment.


To help reduce carbon dioxide emissions through the use of natural gas used to
operate engines and turbines; the company has installed the environment friendly Co-

generation Power Plant.


In order to recycle the waste thinner in its manufacturing process Toyota has installed

a Thinner Recycling Machine with a cost of Rs. 2.5 million.


Toyota Motor was the first automobile company in Pakistan to use environment-

friendly gas R-134a in car air-conditioners (instead of CFC-12).


To ensure environmentally safe solid waste disposal; Toyota has installed an

Incinerator facility at its plant.


Thousands of saplings and trees are planted at and around Toyotas plant.
It also developed a garden zone of over 64,000 sq. meters.
Toyota Motor is also contributing for the preservation of Lake Saiful Muluk to clean
up its surroundings and educate locals to keep the area clean.

Communication problems amongst the employees at Toyota Motors


Pakistan
Toyota Motor has major chunk of its employee from Pakistan being located here.
Employees belong to different parts of country representing their local culture. The
executives are from Japan, Thailand and Singapore and there is a score of Pakistanis as well.
People from Japan, Thailand and Singapore speak different languages; they show different
gesture and body language at the changing situation. These factors naturally tend to create a
linguistic barrier between them and their Pakistani co-workers and subordinates.

Reasons for difficulty in communication

Cultural difference between Japanese, Thais, etc. and Pakistanis is the major
communicational barrier. Pakistan is a culturally rich country which possesses diversified
culture varying from region to region. Labour working in the plant of Toyota Motor
represents mostly rural background. The labour force has different culture, temperament of
work, physical status and language. Managers have to use different techniques to
communicate the task to the labour and they have to use different techniques to get the work
done.

How Toyota Motors is managing communication barriers in a multicultural environment.


Toyota has built up a strong corporate reputation over time which facilitates the
building of good relationships amongst its work-force. To understand the cultural values and
requirements Toyota has designed rotation plan for its key staff on a 2 to3 year-basis. This
consistency makes the management-staff and staff-staff relationships more harmonic.
Individuality is respected but the over-all policy of Toyota remains consistent to get the work
done efficiently.
As good team working is fundamental at every stage, Toyota explains their way of
doing the things to get the output. Mutual trust is a key principle of good working
environment; this is always maintained at all level.
Recommendations
1)
2)

Toyotas efforts to breach the communication gap should continue.


A modernized structure at Toyota be maintained to deal with communication

3)

problem arising due to the cultural difference.


Toyota is contributing a lot in making environment healthier and free from
pollution it should resume. The company should pursue the development of

4)

energy-saving products too.


Lower staff should be educated to obey laws of land and keep the safety and

5)
6)

security as the top priority.


Toyota should continue contributing in social support accomplishments.
to effectiveness of communication, understanding each other builds a good

7)

relationship.
Employees may be taught to take the things at face value rather than as

8)

delegate of layers of sense.


Efficiency and effectiveness may be served by a sustained focus on tasks.

9)

It is recommended to evade messages which are muddled or cluttered. Such

10)

messages leave confusions that if you actually mean what you say.
The key of getting the successful communication is to be an active listener;

11)

staff should be educated to listen carefully.


Toyota should devise a system where staff should try to remove physical and
environment distractions while engaging in a cross cultural communication.

Conclusion
In this paper, I have considered the communication between Pakistani and Japanese
and different clans of Pakistani colleague. Context plays vital role in any conversation
therefore it is highly recommended to understand it properly (Gleser GC, 1981). Especially
when we are engaged in a situation where there are cross cultural conversations going on,
understanding the difference and thorough knowledge of contexts is unavoidable.
The effective communication is managed within an environment where folks from
different ethos work is always been a worry companies like Toyota. To maintain conducive
working environment Toyota has devised different ways which are highlighted in this study.

Action Plan
Recommendation

Action

Action

Benefits from

Toyota management should

Understanding of

completed by
Management

implementation
Enhanced Message

continue its efforts to breach the

each others culture

and staff

understanding

communication gap
Maintaining a modernized

be inculcated
Staff be kept

Management

Getting the job out of

structure to deal with the day-to-

updated with the

and staff

lower staff would be

day communication problem

changing social

arising due to the cultural

environment

difference.
Contribution in making

Better work-

environment healthier

environment would

atmosphere will help in

Use of global human resources,

increase output
Friendly

increasing output
This will support

better and easier

Management

Management

Healthy working

environment in the

consolidated

organization

management on a

Safety is the top priority slogan

Adherence of safety

Staff at all level

global scale.
Safe working

be implemented

rules

must adhere

environment, increased

Management

production.
It helps in creating

Continue social support

Social support

contribution

actions

goodwill amongst the

Understanding each-others

Better

Management

locals
It can contribute to

context

understanding of

and staff

effectiveness of

Take the things at face value

culture
Understanding of

Staff

communication
Better understanding of

Sustained focus on tasks.

culture
Focused task

Staff and

culture
Increased efficiency

Avoid evaded messages

Clear messages

management
Staff and

and effectiveness
Reduce confusion

Be an active listener policy

Clarity of task

management
Staff and

Will help in getting the

management

message clearly and to


avoid chances of chaos

Carefully select the context and

Clarity of thought

Staff and

Help in removal of

conversation style to strengthen

and assignment

management

physical and

the communication and reduce

environment

barriers

distractions while
engaging in a cross
cultural
communication.

Bibliography
Gleser GC, G. B. W. C., 1981. Gleser GC, Green Prolonged Psychosocial Effects of
Disaster: A Study of Buffalo Creek, New York: Academic Press.
Greenberg, P., 2004. CRM at the Speed of Light: Essential Customer Strategies
for the 21st Century. s.l.:McGraw Hill Professional .
Jay Kandampully, C. M. B. A. S., 2001. Service Quality Management in Hospitality,
Tourism, and Leisure. Haworth Hospitality Press. .
Ji, H. L. & Ajai, S. G., 2014. Managing Multibusiess firm: A comparision between
Korea Chaebols and diversified U.S. firm. Journal of World Business, 48(4),
pp. 443-454.
Peppers, D., 2010. Managing Customer Relationships: A Strategic Framework.
s.l.:John Wiley & Sons.
Toyota, 2014. Toyota Motors. [Online]
Available at: http://www.toyota-indus.com
[Accessed 15 July 2014].

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