Every organization has a culture that focuses on social integration, motivation and commitment to help accomplish goals and innovation while increasing productivity and competitive advantage. The complex nature of organizations forces one to analyze the internal behaviors that are perceived as the norms in the environment, thus creating a culture that is embraced whether intentionally or unintentionally by the people of the organization. To add, interacting across cultures and within international organizations can be challenging due to the complexities of multicultural situations. Hence, this dissertation will discuss the impact of cultural dimensions on the emerging leadership development and operation of an international joint venture with Russia.
Russia is a country that is culture and historically filled with dramatic turning points. The country has made significant strides both economically and politically to attract business opportunities such as a joint venture; however, the country’s policies could potential affect growth. Furthermore, initiating a joint venture with another oil company within the country may prove to challenging if there is no clear understanding of culture. This essay will discuss the research results from the consultant’s perspective on Russia, as well as the impact of cultural dimensions on the emerging leadership development and operation of the joint venture in Russia.
Case background Alpha Oil and Gas (AOG) is an 18-month old
Lewis, a variety of leadership structures are outlined according to each country. This helps to highlight the vast differences in leadership and management style around the globe, and can aid companies as they begin to forge into the global market.[1] The differences are striking, even between countries with similar cultural backgrounds, like the United Kingdom and the United States of America and demonstrate that in order to have a truly successful business partnership with a different country, you must spend time learning to understand exactly how that country handles business, and how it manages it’s employees. Lewis states, “By focusing on the cultural roots of national behavior, both in society and business, we can foresee and calculate with a surprising degree of accuracy how others will react to our plans for them, and we can make certain assumptions as to how they will approach
The continuous growth in global business interactions and partnerships constitute the necessity for business partners to understand the cultural differences in society. This growth has led to increased competition and customer expectations which drives the need for innovation from a variety of human resources (Saray, Patache, Ceran (2017). The importance of understanding the international business culture and how to properly communicate is extremely crucial to form a strong relationship. The driving force behind human behavior is culture (Moran, Abramson, and Moran, 2014, pp.11). Behaviors, attitudes, productivity, and morals are all driven by culture (Moran, Abramson, and Moran, 2014, pp.11). The ability to recognize the cultural differences, emphasize employees’ roles, drive empowerment and make the necessary accommodations is a key measure to achieving strategic goals (Saray, Patace, Ceran (2017).
Levitt (2014) defines culture as the coherent, learned, shared views of a group of people and about life’s concerns that ranks what is important, furnishes attitudes about what things are appropriate, and dictates behavior. Macy’s corporate culture possesses a diverse leadership team to target their diverse customers and locations. Diversity, based on experiences and passion, gives the Macy’s leadership team new perspectives to promote successful business. Levitt (2014) suggests organizational diversity can be considered as a mixture of people with different group identities working in the same social system. A multi-cultural team of Americans, Italians, Germans and Swiss would adapt well in the rich bouquet of culture in Zurich, Switzerland. As a new team leader, the biggest concern would be establishing integrations between the different cultures working together at Macys.
Rothman stands by the importance of effective leadership in accord with Schmitz, (2012) in “understanding cultural value dimensions in businesses” is significant for an organization. Since Dr. Rothman feels that globalization and new technology have fast, advanced in the last few years, it is also important, like Malonis statement in his article that “companies establishing a global presence devise strategies related to language cultural awareness and sensitivity.” (p. 347). Dr. Rothman understands that the process that an effective leader follows using the skills needed to build up an organization adequately is a combined effort of individuals working together. Recently he made a statement saying, “Ours is an institution that welcomes people from all countries and backgrounds.” It is important that the as a leader that the semantic ethic of any individual that other under their domain treat others that are different from themselves with respect alleviating intercultural conflicts. Knowledge and awareness of cultural values can enable leaders and managers to effectively manage and work through intercultural conflict and interactions (Schmitz,
Russian organizations typically are described as organizations that require transactional leaders with a top-down orientation (McCarthy, Puffer, May, Ledgerwood, & Stewart, 2008). This type of organization can hamper Russian firms as they transition to a market economy. Most of obstacles to FDI in Russia are institutional and there is much needed advancement in stability, flexibility, and transparency (Yi Sun & Walton, 2009). However, a firm can put in place leadership with specific goals towards changing organizational culture and training Russian
As organizations become increasingly global, the success of organizations is dependent on the leader’s skills in merging diverse cultures in building high performance teams across multiple countries. Global organizations are required to adapt to continuous changes in culturally diverse global business environment. Multinational leaders must become adapt to leading a culturally diverse workforce if the organization is to become transcontinental. Therefore, there must be an emphasis on diversity training and cultural sensitivity training across the organization, especially among members of executive leadership. Inclusive leadership has been presented as the most applicable global leadership style as businesses make the transition from a local to global mindset. This synopsis will discuss integrating varied perspective, negotiating strategies and cultural mindsets, and communicating methods that facilitate organizational strategy, This document will conclude with a summarization of this discussion.
The Global Leadership and Organizational Behavior Effectiveness Research Program, or GLOBE, is an extensive research program devoted to understanding how culture influences leadership and different organizational processes (House, Hanges, Javidan, Dorfman, Gupta, 2004, pp. 9). This program consists of three separate phases, the first being an empirical study focused on developing research instruments (House et al., 2004, p. 9). The second phase is primarily geared toward the “assessment of the nine core attributes of societal and organization cultures” which are referred to as cultural dimensions (House et al., 2004, p. 9). And the last phase is currently underway as an investigation of the impact and effectiveness of specific leader styles
This article seeks to understand the two-way, intrinsic relationship held between culture and leadership. Topics include three types of culture which may have a mediating effect on the practice of leadership; regional culture, business sector culture, and organizational culture. Organizational culture is then examined in the context of culture’s effect on leadership, and leadership’s effect on culture. Suggestions for further research into these areas are presented.
Cultural differences between countries have strong effects on individual personality and behavior, as well as on organizational culture (Hofstede 2001). These differences can be a significant barrier for an international business leader. Failure to understand and adapt to these differences may
This collision of cultures and social norms stand unique from any in our past. Strong leaders have a keen sense for connecting with, communicating, and behaving in a manner that allows the best of all worlds to come forth and prosper. Alon Lisak, Miriam Erez, Yang Sui, and Cynthia Lee authors of “The positive role of global leaders in enhancing multicultural team innovation” (2016) for the Journal of International Business Studies highlight:
Effective organizational leadership is the key to success for any multinational organization. According to House & Adita, 1997, One of the biggest challenges for these multinational organizations is the cultural diversity present in
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.
In broad leadership affects performance but different approaches to leadership may be required in the overseas operations of multinational organizations. Because some nations may only recruit and promote those individuals that fit the national, culture bound leadership model. This research will therefore investigate the cultural sensitivity of HSBC in particular the employees of HSBC in Hong Kong. The practical implication of this research would be to analyse the effect of culture on leadership skills in multinational organisations.
This paper will review two journal articles focusing on the clash of two different cultures, the effect of culture on the Mergers of DaimlerChrysler/Mitsubishi and Nissan /Renault mergers and discuss the factors impacting the failure of DaimlerChrysler/Mitsubishi and the success of Renault /Nissan.
Within every environment and business, culture plays a role in many different ways. In my reading I have found that culture is defined as the shared intellectual programming of the human mind which differentiates one group of individuals from another group. It has often been understood that statements about culture do not describe “reality”; they are all general and relative”. Often times you will find that dependent upon the person, culture can be very subjective, meaning everyone sees things in a different view forming their personal opinions. According to this weeks’ case study we were challenged to determine and understand how culture and environment affect institutions and their management. This paper will assess how Linda Myers, from the required reading, “The Would-Be Pioneer,” was affected by the huge culture shock of working for a global conglomerate from Seoul, South Korea. I will highlight what went wrong with Ms. Myers from my point of view over the course of her assignment. I will also analyze the cause by explaining the problem Ms. Myers is encountering using the Hofstede’s five dimensions of culture to compare Korean and American assumptions about interpersonal relationships and management. Finally I will conclude through proposing a solution by making a recommendation of three specific