Topic Review: General Management
Effective cross-cultural management has to be grounded in a detailed knowledge of individual cultures. Discuss using examples from two multinational companies.
I/ Introduction: In times of rapid globalisation and economic development growth, the environment of business has become more and more complicated as a huge number of firms want to globally expand their businesses. Subsequently, the managerial implications of cross-cultural management is the challenge of this development. As Abbe (2007) states, cross-cultural leadership has developed as a way to understand leaders who work in the global markets. Culture is the “software of mind” that can influence people’s patterns of thinking and behaving.
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As a result, it is critical and essential for adaptation to achieve corporate success. According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.
III/ Examples of Two Multinational Companies: 1. Wal-Mart: In the United States, there are more than 4,000 Wal-Mart stores. On average, it costs more than $2,000 each year at Wal-Mart for every American household.
Managers in today’s world are important assets to the multicultural organisations. Leadership styles of managers are highly important in terms of managing the team of followers, which has a correlation to the productivity and results that the team would achieve in the future. By having good management, it contributes to the success of the organisation. Hence, it is vital to identify the different leadership styles especially in different cultures to suit the working environment and culture of the organization. In the present multicultural global business industry, cultural differences can come in the way of the success of project completion (Anbari, Khilkhanova, Romanova, & Umpleby , 2009) . It has been claimed that rigid leadership does not promote motivation and creativity, therefore, managers should lead by flexible leadership and be culturally sensitive, adapting to different cultures, for the team to be able to move forward and reach their goals (Anabri et al. 2009). The way a manager’s leadership takes place also affect’s the experience of the employees at work and the relationship between the manager and the employee. Jariya (2012, p66) states that ‘different cultures differ in the values they endorse, people from these cultures often interpret the same managerial practices
Mismanaging cultural differences can render otherwise successful managers and organisations ineffective when working across cultures. As stated byOsland (1990, p. 4) ``The single greatest barrier to business success is the one erected by culture''. Hofstede (1983) defines culture as "the mental programming of the mind which distinguishes the members of one human group from another" (Hofstede 1983 p. 25). Through the comparison of Chinese culture and Australian culture using Hofstedes five cross-cultural dimensions: power distance, uncertainty avoidance, masculinity, individualism, and long-term orientation an insightful view into the differences and similarities of the cultures can be obtained (Chong & Park 2003). Human Resource Management
With the unstoppable trend of globalisation, it becomes extremely significant for international businesses to have a thorough understanding of different cultures. Hofstede (1980, pp. 21-23) defines culture as ‘the collective programming of the mind distinguishing the members of one group or category of people from another’. This essay examines Hofstede’s cultural framework and suggests that Hofstede’s cultural framework is an outstanding and authoritative tool to analyze culture differences. In this essay, cultural frameworks will be discussed firstly, following by a discussion of my cultural scores and background. Finally, recommendations on cross-cultural management between China and Australia will be provided.
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.
Cross cultural studies has great impact especially to business managers. National culture or core culture that developed the individual before it is influenced by other factors in the environment and society is subject to change depending on how strong the influences would be. However for the individual to fit in, they have to embrace the new found culture or a new culture might have evolved combining the core values and the current society’s value.
Cross Cultural management explains the behaviour of people in organizations worldwide, helping managers and firms to understand how to act in business matters dealing with the different cultures. (Adler, 2008)
Organization wants to achieve the objectives of sustained growth and increased profitability, organization must constant innovation its product or service, also need to carry out some plans to expand its business to enable an organization to have a better development. Organization expands its business cannot be confined to the domestic market must also move abroad, which effectively allows an organization closer to the global market and broadening the scope of business and profitability. However, business expansion is not as easy in this global environment, globalization has not only changed the enterprise competitive landscape also influence the way leaders conduct business (Caligiuri, 2006). Furthermore, with globalization, global leadership in terms of cultural knowledge needed to become more acute and require more advanced level of cognitive ability on the complexity of managing the demand of multiple cultures while completing managerial tasks (Caligiuri, 2006, Grosse, 2011). Therefore, the development of global management skills is very important for the global organizations and managers. Only effective in developing global management skills can help the organization reduce the risk of international business
Both the authors have taken descriptive approach to elaborate in detail their respective areas of cross cultural management. As per article, “Rethinking Cross Cultural Management in a Globalizing Business World” by Soderberg & Holden (2002), due to globalisation and its increasing trend, the organisations and its environment has gone through significant changes. Thus the traditional way of defining the cross cultural management needs amendments. Further the author has elaborated that in this commitment the authors are contending for a split far from the conventional method for considering and portraying diverse administration for two fundamental reasons. To begin with, the winning idea of society as-substance, which in this logical connection is vigorously connected with national societies (and, by augmentation, country states) is distant with the hypothetical improvements of conceptualization of society and character. Moreover a conceptualization of hierarchical and national society’s too characterized and homogeneous substances is out of stage with the new economy, with its accentuation on systems administration, hierarchical learning and information as the fundamental hierarchical asset, which rises above firm, industry, and national limits. Second, the new economy requires not simply new skills and 'worldwide education but also needs to adopt 'the worldwide attitude'. A globalizing business world too needs suitable calculated apparatuses and expository methodologies of advantage to both analysts besides, specialists. Consequently the article “Cross cultural Differences in Management” by Amman & Jordan (2012) has concluded that due to cross cultural environments, the managers can encounter different impact on different areas of management. These impacts can create many limitations and barriers on different areas of business. Therefore, managers of the
Cultural differences and cross culture conflicts is the biggest challenge in terms of cross-cultural management that will arise in
What are the seven cultural variables in the communication process? Explain 1)Attitudes, 2) Social organization, 3) Thought patterns, 4) Roles, 5), Language, 6) Nonverbal communication, 7) time.
It is undeniable that competition in the business area is very fierce. People in the business world must find the best way in order to survive. Business, nowadays, expand their business to other countries as globalization on the rise. They need to remain competitive in a global marketplace with well coordinated and tightly controlled worldwide operations. For multinational enterprises (“MNEs”), the corporate culture is one of the core elements bringing success to its businesses. Yet, cross-cultural conflicts also could hinder the MNEs from optimizing its worldwide operations. In this paper, we will discuss how corporate culture influences
Now days, the world becomes a one village. Although, there are different kinds of management styles and cultures impact on business management in the world, employees needs to increase their awareness to achieve the organisation targets. Awareness of cross-cultural management includes procedures and policies that are relate to the management of any organisation or workforce with different cultural and background. According
The importance of international manager is very important specially in the case of business contexts within the firm. For example, managers from a foreign parent company need to understand that local employees from the host country may require different organization structure and HRM procedures and this become easily for firms to sell their product and marketing their product successfully to their foreign customers.
Culture will play a major part in the dynamics of the way we operated in international business circles. Managers today will need special skills in order to meet these challenges. Language differences, culture awareness, and management skills are necessary for success. These challenges often lead to a debate in which is better for a company, expatriate or foreign national workers. There are pros and cons to the use of each, but it will depend on several factors to which managers will be better suited for the challenge of
The increasing innovations and creativity in the business pattern, the cross-cultural business operation, and marketing is increasing day by day. Cross cultural business enables different nations to have a better understanding of global business pattern along with their marketing strategies and tactics that help them to achieve their target in the market place. Moreover, cultures of different nations differ from each other that created the urge for organisations especially multinational corporations to study the culture and life style of other nations before expanding or internationalisation their business organisation.