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
In this era of Globalisation, cross cultural management is the biggest challenge that is faced by the organisations. Within the business context, cross culture refers to interaction between different cultures. Cross cultural management refers to managing the employees from different cultural background in one environment (Adler, 2008). Cross culture management is a significant issue within the organisations as the success of an organisation depends upon the smooth interaction of the employees. This paper is aimed at providing insight on the cross cultural management and the main issues and challenges relating to cross cultural management. For the purpose of this paper, two articles, “Cross-cultural Differences in Management”, by Amman & Jordan
A mechanism to gain access to new resources is known as acquisition (Sarala, 2010). Culture is comparatively a new dimension in acquisitions and mergers. According to (Sarala, 2010) culture dimension play an important role and highlights the cultural factors such as cultural differences and other cultural characteristics affect the outcomes of the acquisition. Article (The role of leadership in successful international mergers and acquisitions. Gill, 2012) will review the cultural differences and how two different Leadership styles have a totally opposite effect on the two mergers in a same culture. Second review article selected is (Multicultural Shared Leadership in culturally diverse Team. Ramthun & Matkin, 2012) which will address the shared leadership and diversity among team members with focusing on national and organizational culture, this is related to the case of the mergers discussed in the first article and may be the possible reason for the failure of DaimlerChrysler/Mitsubishi merger.
Kreitner, R. (2009). International Management and Cross-Cultural competence. (11th ed.). Management. Mason, Ohio: South-Western Cengage
It is crucial for today's business personnel to understand the impact of cross cultural differences on business, trade and internal company organization. The success or failure of a company, venture, merger or acquisition is essentially in the hands of people. If these people are not cross culturally aware then misunderstandings, offence and a breakdown in communication can occur.
In multinational workplaces understanding how important the significance of cultural differences is larger than we might think. Organizations that are diverse have to work together because their functionality impacts the productivity of the workplace. It is vital to have an understanding the different cultures to develop a strong organization. Certain principles will help you acknowledge that different cultures exist within the organization. As a manager, you have to analyze the reasons for the development of the differences and
It is no longer feasible that a corporation can successfully move through the global marketplace without learning to recognize the cultural norms of each country. It falls to the executives and managers to implement these changes and to ensure that their companies are working to move towards a more inclusive, and ultimately, more profitable way of doing business that appreciates and respects all cultures and work
As per the 14th Annual Global CEO Survey by Price Waterhouse Cooper for the year 2011, the need had been identified to bridge the gap of global skills as one of the biggest concerns, specifically for companies considering attraction, recruitment, development and retention of talents across the globe (Moran, 2014). Costly mistakes, frustration, and confusion are the main consequences of absence of global skills mainly because of ignorance regarding the effect of culture across the work place. This is because ignorance of culture differences result in unproductivity across the organization (Latimer, 2012).
Some businesses in America transfer into bi-cultured after starting out as monoculture. This typically happens when one company buys out the other or they join each other and sub-merge. Every now and then this happens globally. Companies face changes when a merger takes place such as how the business will operate, wages, and or if there will be interference from the government. Once the merger has begun the rules are changed to better serve the company whether people are with it or against it. Company success stories are sent over to a list which is created called the Globe Project list. This list gives pointers and advice for globalized managers to practice based on several key items and characteristics required during a successful merger. Daft states, “Some of the characteristics are assertiveness, performance, and human orientation” (Daft, 2013 ).
Managers are increasingly faced with the challenges of navigating through the various cultures of people employed within an organisation namely working with a multi-cultural workforce. As such managers need to be equipped to
Cultural differences and cross culture conflicts is the biggest challenge in terms of cross-cultural management that will arise in
This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.
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.
Effective cross-cultural management has to be grounded in a detailed knowledge of individual cultures. Discuss using examples from two multinational companies.
In today’s business environment and specially in Multinational Organizations, we have diversity of cultures and nationalities working together despite all cultural differences.