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Cross cultural management issues
Cross cultural management issues
Cross cultural management issues
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Table of Contents
iii. Executive Summary
iv. Introduction
iv. The Contemporary Perspective
v. Issues and Challenges
vii. Recommendations based on Management Perspective
vii. Summary
viii. Bibliography
Executive Summary
This paper is a report on cross-cultural management, with the issues related to cross-cultural management being discussed in the paper. Additionally, the report has produced the future way of cross-cultural management, including how it can be improved in offices relying much on this strategic approach.
Diversity of Cross-Cultural Management
Introduction
In the beginning of globalization, organizations have started redefining their approaches of management. It is because of the fast, continual, and uninterrupted change being experienced by organizations in the contemporary period. Organizations have taken into account strategic approaches, which have not only developed their competencies but also prolonged the competitive survival of their businesses. Cross-cultural management is one of such approaches, which organizations, in the recent times have tried. Organizations have tried these approaches and have found proven results for their long-term business sustenance.
This paper encompasses issues of cross-cultural management, which is the most significant and essential approach taken by international organizations in the recent history. The purpose of the report is to discuss and highlight issues of cross-cultural management in order to find effective and apprehensive solutions on it. After discussing issues, the objective is to provide recommendations on how cross-cultural management can be improved in organizations awaiting to see their fut...
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Bibliography
Cambal, C., & Luptakova, W. (2010). Intercultural Management- Trend of Contemporary Globalized World. Electronics and Electrical Engineering, 6(102), 51-54.
Guang, T., & Trotter, D. (2012). Key issues in cross-cultural business communication: Anthropological approaches to international business. African Journal of Business Management, 6456-6464.
Jackson, B. (2014). Challenges in Managing a Cross Cultural Team
Plessis, Y. d. (2011). Exploring teamwork paradoxes challenging 21st-century cross-cultural conflict management. International Journal of Cross Cultural Management, 49-71.
Sultana, M. (2013). Cross-Cultural Management and Organizational Performance: A Content Analysis Perspective. International Journal of Business and Management, 8(8), 133-146.
Velo, V. (2011). Cross-cultural Management. London: Business Expert Press.
Moorhouse, A. (2005, November). International Management Organizational Behavior. Retrieved October 16, 2008, from University of California Berkley: http://www.ocf.berkeley.edu/~matran/Files/proKarenLeary.doc
The journal article is titled “Creating Hybrid Team Cultures: An Empirical Test of Transnational Team Functioning” authored by, P. Christopher Earley and Elaine Mosakowski from Indiana and Purdue University respectively. The journal provides information on a study that was carried out to measure the impact of heterogeneity and performance of an international organization. The journal tests the relationship between heterogeneity of a team specifically on the issues of cultural differences and the effectiveness of such a team. The main argument is that transnational teams once they have successfully overcome the challenges of heterogeneity will create a certain culture that is unique to them through which effective evaluation and performance is achieved. This type of a culture that the team attains is referred to as a hybrid culture (Earley & Masokwoski, 2000). The journal therefore contains three studies that test the relationship between team heterogeneity and effectiveness.
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
Trompenaars and Hampden-Turner are management consultants. They published their work on cultural differences in 1997. They developed the model based on a more than 10 years investigation and research in many countries in the world and based on feedback they received from more than 46000 managers in more than 40 countries.
Awareness of culture when traveling to a foreign country is invaluable knowledge which only serves to enhance one’s travel experience. “There is no more noble calling than to help the people of the world live together in peace and understanding with a fully developed spirit of inquiry about other cultures and their ways (Kohls).” As it relates to international business, cultural awareness will significantly impact intercultural management for the organization within the desired host country. Therefore, an organization starting and/or expanding their business in a new country should consider cultural factors as a hedge to success. The first factor to consider is cultural sensitivity, which is the awareness of and concern for others culture. The empathy resulting from this sensitivity is necessary for effective cross-cultural management (Payne). Remember, culture is not inherited. On the contrary, culture is learned
The international management structure and an appropriate organizational design for managing people in a cross-cultural environment are made up of an effective scheme. During these activities, companies face the technical, political, economic, linguistic, and cultural differences have to go through practice. For a small business to go after any international activities, even if a couple of these international challenges, or simply to show up in the competition, while active in the local community in their own private market to cooperate with a foreign company.
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
Understand and heed cultural differences - cultural variables in transacting international business. (1991, January 28). Business America. FindArticles.com., Retrieved March 20, 2009, from http://findarticles.com/p/articles/mi_m1052/is_n2_v112/ai_10412261/pg_4?tag=content;col1
Standards and conduct (that an organis. sets itself in its dealings within the organisation and outside with its environment
Sonderberg, A-M & N Holden. (2002), Rethinking cross cultural management in a globalizing business world' International Journal of Cross Culture Management 2(1): 103-121
Effective communication with people of difference cultures can be especially challenging. The way people interpret the world can be strikingly different between cultures. Intercultural communication occurs when a member from one culture produces a message that is absorbed by a member of another culture. How that message is understood by the communicating party is a vital part in intercultural communication. For example, in Cambodia it would be considered rude to discuss business in a social setting (Language, culture, customs and etiquette, n.d.). However, in the United States this is a common practice and is almost an encouraged event. Another important factor and consideration in intercultural communication is the importance of understanding cultures, values, history and beliefs. For instance, in Cambodia, if you deliver a present that is wrapped in white paper, this is considered to represent mourning. This is one of the many reasons why it is important to assimilate into a culture and be mindful of communication between cultures (Language, culture, customs and etiquette, n.d.).
Cultural differences are more profound among foreign employees working within same multinational firms than those working for their native countries.cross-cultural management trains people to work in firms with employees and client population 's from several cultures(burke 1983).it describes organizational behavior within countries and seek to understand and improve the scope of domestic management 's and enhance international and multicultural interaction 's among employees.cultural diversity is a synergy that can improve efficiencies of a firm.therw are strategies that can be employed such as parochial,ethnocentric and synergistic .culture diversity brings organizational cultures which define how a firm operates.its made of values which are specific for a given country.it determines the present and future behaviours of members of a firm.the leaders create a vision or a philosophy and business strategy for the company.the employees then react and behave guided by the implemented philosophy.organizational culture directs the firm to derive goals, strategies and how to achieves the set goals .organisation culture dictates innovations, creativity,reward methods, communication channels, respect for others.according to the theory of competing value framework organisations can be grouped as a clan, adhocracy, hierarchy or a market.in clan type, leaders are facilitators, mentors and parents.it encourages cohesion and proper development human resources.in hierarchy type,
To conclude this we can say that cultural environment is an essential variable that reduces differences between domestic and international human resource management. Research has shown that there are differences in values, beliefs, attitudes and cultural environments with the increase in internalization of employment. Therefore, in order to form a top management multicultural team having cultural expectations, strategic objectives and managing styles is necessary and can lead to success as stated by Roth.
...rimarily by economic interdependency and advances in technology, but that success will be driven by the ability of international managers to understand appropriate business etiquette, customs and values among nations of the world. Because communication is culture bound and culture specific, it is important that companies involved in international business devote adequate time to learn, understand and appreciate the different ethical and cultural habits. The acquisition of these competitive global skills and competences will enable high growth businesses establish lasting strategic relationships. In light of the advantages and complexities of globalization in the 21st century business management, cultivating cross cultural awareness and developing multicultural sensitivity and global mindset by managers will lead to sustainable growth in international business.
“Today, we do not live in a civilization, we live in a ‘globalisation’ – with a globalisation of resources, a globalisation of business activity and a globalisation of humanity” (Schermerhorn et al., 2014, p. 151). This large scale societal evolution of the global economy of late has resulted in the need for managers to possess a transnational outlook, be competent in working with other cultures, be more informed of international developments (Schermerhorn et al., 2014, p. 90), as well as be able to successfully manage the expansion of their firm into international territories by respecting the culture of the host country, and through the use of expatriates. These are employees who live and work in foreign countries on short-term or long-term assignments and, as a result, gain valuable international and corporate experience (Chew & Debowski, 2008, p. 4). Globalisation signifies the “interdependence of resource flows, product markets and business competition” (Schermerhorn et al., 2014, p. 89) on a global scale. The expansion of international corporations into uncharted competitive territories has brought managers of these MNCs to face a vast number of greater challenges than before, such as problems that arise from managing expatriates and repatriates, management across cultures, managing cultural diversity, the transference of knowledge across cultures, and the need for alterations to the existing management practices. This essay will further examine the aforementioned challenges that managers are required to surmount to succeed in today’s global economy.