Cross-Cultural Management International Management

Question: Discuss about the Cross-Cultural Management for International Management. Answer: Introduction Cross Cultural Management is recognized as a discipline of international management. It involves management of work after making consideration of differences existing in the cultures, preferences, and practices of the people belonging from different background. Apart from the differences in culture, businesses also adopt and learn to modify their approaches in order to compete in the international market. Through adoption of cross culture management, many businesses will no longer become bounded by the physical geography and will be able to establish online interactions with the other group members. Inter-cultural interactions taking place between businesses increases the importance of their people and leading to access towards wider areas of market that are fully developed using new technology(Sahu et al., 2014). Wireless technology plays key role in creation of such environment as it shrinks the world and helps to formulate faster interactions across the seas. This also makes the t ravelling faster and easier as many people know how to interact with the people of different cultural. Apart from businesses, cross-culture management is the need of different other professions also. It has become the curricula or the part of their training schedule. For instance, individuals or group of members who have planned to work in the different cultural environment requires that they have effective communication skills. This will make them feel respectful towards the people with whom they were going to indulge and will help them to remove the misunderstandings, if exists. The understanding of facts is necessary because communication holds value in every profession (Sderberg Holden, 2002). Discussion As per the notifications of Tichy (1983), the fields where human resources are managed were emerging in the market as a process of gradual and uneven transformations. International organizations were now experiencing the different phases of transitions at the ending, beginning and in-between sections (Laurent, 1986). After crossing the national boundaries, businesses were pressurized to develop skills and management abilities. The businessmen were keenly aware of the cultural factors that have heavy influence on the management styles. Many authors have argued in their researches that this method has become out of phase as it is seen in most of the organizations that cultural differences has become the cause of conflicts and miscommunications. The reason is being existence of transnational companies that faces challenges for managing the multicultural project teams and global knowledge networks. They do so to interact and collaborate with the people across boundaries using global communication technologies. The major focus of cross cultural communication is on behavior of people belonging from different culture and working together in similar organization. The cross culture management mainly emphasizes on issues related with the traditional organizational behavior such as leadership, motivation, group dynamics, and decision making. It is the study of micro level rather than the study of macro level (Adler, 2016). Definition of Cross-Cultural Management Nancy Adler (2008) has given a definition of cross cultural management: Cross-Culture Management describes about organizational behavior existing between individuals belonging from different countries having their own culture. All the employees of the institution were associated with each other and formulate their own organization. They were seeking to improve the interaction taking place between co-workers, executives, manager, suppliers, alliance partners and clients present around the world.(Kawar, 2012) In other words: Cross-Culture Management is the achievement of cultural synergy, productive diversity and intercultural effectiveness through processes using successful cultural adaptation, cross-cultural social engagement and performance management. Managers use their specific leadership qualities for managing skills of cross-cultural teams that involve resolution of culturally related value dilemmas.(Kawar, 2012) The growing demands of the world have improved the importance of managers having sophisticated global management skills and capability to work with other people of the country. International working organizations and their role in economic development is quite common these days. Companies are now adopting outward nature for getting in touch with various national cultures (Chevrier, 2003). Importance of Cross-Culture Management Problem-Solving is one of the important tasks that must be handled by the management. At the same time, it must also be considered that which of the partnering company is bringing capital and know-how. The partnering companies that supply the best to the company and will be able to secure the future of the company usually have an influence on the newly established culture of the organization (Negandhi, 1983). When organization becomes capable of overcoming the possible misunderstanding and creates a favorable environment for all the participating partners, then it is possible that company would be able to engage more partnering companies. The consequences in which cultural differences of the organization is ignored leads to obtainment of devastating results such as acquisitions and fusions. Rodgers, Gancel and Raynaud (2002) have defined some of the causes that might create problem for the management. They are as follows: Insufficient Understanding: Managers were well-aware about the norms and standards followed in culture of organization but do not understand about the issues and as a result they underestimate the impacts of culture. Instead, they also do not take risk of handling the issues by the fear that it may cause harm to their organization (Xing, 1995). Insufficient Willingness: Managers after being aware about the cultural practices do not want to indulge in such process. Usually, such decisions are taken by the managers because of following reasons: They were more interested in managing technical problems or economic issues rather than investing enough time over the management of cultural differences. Management of cultural aspects does not hold importance for the managers, hence they give much priority to understand the cultural aspects, but they do not resolve such issues on urgent basis and prefers to work without any pressure for reaching the final results. They experience some kind of fear that is totally unknown to them (Singh, 2001). For example: While dealing with financial problems, they do not feel safer or comfortable or they might be frightening from people, their behavior, emotions, their power of making decisions causes discomfort in their mind. Manager believes that cooperation is more necessary than maintenance of culture in the organization. According to authors also, this is very nave and contra-productive approach of managers, especially when managers were deeply affected by the emotional substances of national culture. Care of cultural integration becomes no more attractive for the manager (Hilb Kaufmann, 2003). They consider that cultural integration will not serve them with money and will not prove their success. Insufficient Awareness of existing difference: Managers might be unaware of the differences existing in the cultural dimension of management. Insufficient level of abilities and skills: Managers have the zeal to do something about it and they also put their efforts for doing it but they fails due to lack of sufficient competence and capabilities. It might be due to lack of intercultural sensitivities, lack of knowledge, and lack of appropriate skills (REDDY, 2010). Theories of Cross-Cultural Management Cross- Culture Management is the source of innovative thinking and source of experience that enhances the competitive position of the organization. The cultural differences and their management play a major role in the successful completion of projects handled by the multicultural global community. It is required that to achieve the goals of the project, the manager should be culturally sensitive and try to work for promoting creativity and motivation using flexible leadership qualities. The theory of cross-culture management reflects on relations existing between people and the organization (Anbari et al., 2003). It is like motivational orientation that helps in maintaining the risk, attitudes of time, attitudes of environment, definition of self, definition of others and many other activities that are directly and indirectly related to the management of cultural dimensions. Geert Hofstede Theory of Cultural Dimensions: Dimensions of culture are the important aspect that is to be maintained by every international business in their organization. The cultural dimension within the organization helps the manager in navigating the international business market (Laura M. Milner, 1993). In 1980, Greet Hofstede has given their theory named as Hofstedes Cultural Dimension Theory in which he has defined about the framework of cultural dimensions. He has described that there is great effect of the societys culture on the value of its members and how these values are related with the behavior of the individual. Later on Hofstede has developed a model that is designed using factor analysis. According to Geert Hofstede, culture is a mind collective program that helps in differentiating the members of one group and the people of one category from another. Here, the term category is referred to religions, nations, regions within nations or across nations, ethnicities, occupations, genders and organizations. In order to provide more clear evidences of his argument, Hofstede has surveyed the people who were working in IBM in more than 50 countries (Mind tools, 2016). On the basis of this study, Hofstede has identified four dimensions. These dimensions are differentiating one culture from another. These dimensions are as follows: Power Distance: This dimension expresses about degree in which less powerful members of the society accepts and expects that power distribution is unequal in the society. The problem behind the inequality of powers underlines the basic functioning of society. In the research of Hofstede, power distances are measured through Power Distance Index (PDI) (Deverism, 2015). Masculinity vs. Femininity: Masculinity in the society is represented as preferences for the achievements, assertiveness, heroism and the material rewards for the success. Its opposite, Femininity stands for the preferences of the society such as modesty, caring for the weak, quality of life, and cooperation. It is all about distribution of emotional roles between the genders. The bifurcation within the management opposes tough masculine and tender feminine in the society. Survey has emphasized over the importance of work goals and the attachments of genders such as women are more associated with the social goals like helping others, maintenance of good relations, physical environment whereas, men were more attach towards ego goals such as career and money. The data of the survey collected by Hofstede reveals that the difference in masculine and feminine varies from differences existing across occupations and across countries. It is believed that both the genders in the society were supposed to be tender, modest, and concerned for maintaining quality of life (Hofstede, 2011). Figure 1 Figure showing synthetic cultures and learning Image Source: https://ecuteblog.files.wordpress.com/2010/09/diagram2.jpg Individualism vs. Collectivism: This dimension finds for the answer of question that whether people have their preferences to remain in the close knit networks or they prefer to be left alone by looking after themselves. This is the basic problem that is to be faced by every society to position themselves with the poles. A concise definition demonstrates that Individualism is the situation in which ties between the individuals is very loose and everyone who is holding the tie wants to look after her/his family members while Collectivism is the situation where members of the society are tied in the network from birth and form their own cohesive group that has integrated all the members strongly. This is the protection provided to the people throughout their life-time on the part of their unquestioning loyalty. The differences for individualism are calculated by Hofstede using Individual Index (IDV) (Hofstede, 2016). Long term orientation vs. short term orientation: Long term orientation can be interpreted as dealing with the members of the society with the societys search of virtue. On the other hand, in short term orientation, the societys biggest concern is to establish absolute truth. This orientation is the extent in which culture line up their members for accepting delayed gratification of the social, emotional, and material needs. This approach does not oppose for differences between east and west, instead it divides the world into new lines. In the long term oriented culture of the organization, business people desires to establish an environment that will accustom a culture in which individuals of the organization should work towards building a strong position in the market and they also do not want its immediate results. Manager offers time and resources so that each element would be able to make their contributions. In short term orientation the major concern is about bottom line in wh ich the focus is upon control systems and the judgment of managers was based on such factors only. The entire rationality under this cultural dimension rests on pre-rational choices (Michele J. Gelfand, 2007). Uncertainty Avoidance: This dimension illustrates the degree to which the society members feel uncomfortable about ambiguity and uncertainty. The members either feel comfortable with the unstructured situations or uncomfortable. Unstructured situation is different from usual situation. In this society, the basic factor is that the member wants to control the uncontrollable factors. The measurement of uncertainty is done on Uncertainty Avoidance Index (UAI) by Hofstede (Price, 2016). Comparison between two Cultures Different national culture comprises of different cultural values in their system. The generation of value system has taken place from the conception, or from beliefs, existing means, necessities, or resources. Cultures have their own standards and factors such as traditions, behaviors or communication proves to be irrelevant for other culture (Nguyen, 2016).And thus it threatens the other culture also. These uncertainties create cultural gaps between individuals of the workforce. When variety of culture structure indulges with each other it might be possible that conflicts or disagreement may arise leading to disruption of methods of control. After making consideration of accepted theories related with cultural dimensions, the two cultures were compared. The countries whose cultures were compared with each other are U.S., Great Britain, and Germany (Jing, 2010). Figure 2 Figure showing cultural dimensions of Germany Image Source: https://geert-hofstede.com/germany.html Some of the researchers such as Roberts and Boyacigiller (1984) has administered that the organizations related with both the cultures are culturally biased. They were found that only one discipline among them is better that is multi-disciplinary approach. It is found that the organizations in which employees of Germany were employed has socialized their candidates so powerfully that their values do not provide any evidences about local national culture. And the organizations in which employees of UK were employed were highly efficient, therefore they believe in individualism (Reiche, 2011). They believe in using value distances. Figure 3 Figure showing cultural dimensions of United Kingdom Image Source: https://geert-hofstede.com/united-kingdom.html There were surveyed organization also where only single or two employees belong from other culture and the rest population of the organization belongs solely from one country. It was found that the use of single multinational employer eliminates the effects of management practices and corporate policies (Weber Hsee, 1885). Figure 4Figure showing comparison between the cultural dimensions of United Kingdom and Germany Image Source: https://geert-hofstede.com/germany.html In the U.K. Culture, it is assumed that reading of business cards reveals the rude behavior of the organization towards their employees as it reflects about the personal identity of the employees such as their title, social status etc. But in German culture, an organization failing to read the business cards is the symbol of disrespect towards the individuals (Selnes et al., 1996). Overall, it can be said that the rituals, beliefs, and culture of the countries sets many deeper-seated meanings for their employees. The employees in multinational organization can only show some respect towards the cross-culture after getting full acknowledgement about the cultural framework followed by the organization (Adler, 1983). Conclusion Cultural Differences in the organizations and other workplaces presents an array of challenges for the multinational institutions. These cultures have a great impact on the communication and interaction that takes place between the employees of the organization. Since, there are many countries in the world who needs to operate in different parts of the world, people of such organization become exposed to different cultures by absorbing all its features and get used to it. As a result, many barriers were faced by the managers in daily routine in the organization. Therefore, such organizations were in great need of managers who will be able to manage the employees of multinational organizations using effective leadership, mutual respect, and cross- culture communication. References Adler, N.J., 1983. A Typology of Management Studies Involving Culture. Journal of International Business Studies, 14(02), pp.29-47. Adler, N.J., 2016. Cross-Cultural Management: Issues to Be Faced. 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