Cultural Intelligence and Business Policies

This assignment delves into the crucial role of cultural intelligence in shaping effective business policies, particularly within a global context. It emphasizes understanding Hofstede's cultural dimensions and their influence on employee behavior and organizational practices. The task requires you to analyze how local or national business policies are shaped by cultural values and to develop strategies for fostering a culturally competent workforce.

Running head: MANAGEMENT AND BUSINESS CONTEXT
Management and Business Context
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Table of Contents
Introduction......................................................................................................................................2
Hofstede’s cultural dimensions in cross-culture management........................................................2
Contextual factors affecting cross-culture management..................................................................4
Suitable recommendations for effective cross-culture management...............................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
Cross-culture management is a significant key that determines the success of the
business. The cross-culture management provides an opportunity for the business organizations
to understand the expectation of the different cultures and fulfil them in international expansion.
This report introduces the importance of cross-culture management for the business
organizations while international expansion. Cultural barriers are the basic challenges
encountered by the business organizations when they go global or international. Thus, the
business organizations need to understand to initiators of these barriers in terms of culture and
overcome them. As commented by Kramsch (2013), the concept of culture highlights the system
of norms and values that are shared among a group of individuals that influences their style of
living and their beliefs.
This report also introduces the importance and impact of managing cross-culture by the
business organizations in order to ensure successful international establishments and expansions.
The effective management of cross-culture is discussed with respect to groups, individuals their
beliefs, social mobility, ethical system, religious beliefs and language. The report also includes
the Hofstede’s cultural dimension in effective cross-culture management.
Hofstede’s cultural dimensions in cross-culture management
Hofstede’s cultural dimension plays a critical role while understanding the differences
that arise in cross-culture management and help develop strategies for mitigating them. The six
features of Hofstede’s cultural dimension includes individualism versus collectivism, masculinity
versus femininity, power distance, uncertainty avoidance index, indulgence versus restraint and

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long-term versus short-term (Mazanec et al., 2015). Hofstede’s cultural dimensions shed light on
the individual preferences and beliefs that distinguish the individuals and the group of people.
According to Hofstede’s cultural dimension, power distance is defined as the unequal
distribution of power within the business organization. In this case, the conflict arises, as the
people with less power assume that the people with greater power are dominating them.
Therefore, being submissive gives rise to conflicts in terms of cross-culture. For instance, in the
Western countries, people belonging to cultures other than Christianity might feel submissive in
the business organizations, thereby, resulting in conflicts. Thus, the business organizations need
to ensure that they strike a balance at the workplace by restricting the uneven distribution of
dominance and power by considering the individual beliefs, background, cultures and norms.
This can be done by developing equal pay policies, employment opportunities and facilities for
each individual at the workplace (Dartey-Baah, 2013).
According to Rienties and Tempelaar (2013), uncertainty avoidance is defined as the
situation that sheds light on the series of cultural events due to which the individuals are either
uncomfortable or comfortable. This phenomenon is noticed because according to this factor, the
society tries to control things that are out of their reach and has to deal with the future
occurrences. Thus, in cross-culture, the uncertainty avoidance index is higher due to the existing
differences between the cultures. For instance, the countries with rigid beliefs, behaviour and
attitude tend to higher uncertainty avoidance index, as they are intolerant and have a
conservative approach for different cultures and individuals with different cultural beliefs
thereby, acting as a major barrier in the cross-culture management. The rate of uncertainty
avoidance index is lower in countries that have an open approach, attitude and belief towards
other cultures. This is because such countries emphasize more on practices rather than cultural

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principles (Zhao, 2013). The cross-culture management is also determined by the long-term
versus a short-term factor of the Hofstede’s cultural dimension. Under this factor, it is essential
for the business organizations to consider their past for dealing with their challenges in the
present and in the future. The difficulty arises when the business organizations tend to stick to
their norms and tradition while considering their past and fail to accept societal change by being
flexible. This is because the business organizations fail to change with time and incorporate the
new cultures, norms, values and attitudes thereby, including the societal changes.
As commented by Beugelsdijk, Maseland and Hoorn (2015), indulgence is defined as the
free gratitude provided by the society in terms of natural and basic human needs in order to enjoy
the life and maintain a standard living standard. However, as argued by Khan (2014), the concept
of restraint highlights limitation on the gratitude, as it is regulated by the strict norms of the
society. The indulgence versus restraint factor affects the cross-culture management, as the
individuals fail to accept the cultural change with an open mind. The difference between the
males and females of the society is a major issue while ensuring cross-cultural management. This
is because of the unequal and uneven distribution of power and opportunities between the males
and females in the society. It is evident that the females of the society are paid less in spite of
being more qualified than males due to existing biases. As a result, the issue in cross culture is
evident due to the existing inequality between men and women in the society (Minkov &
Hofstede, 2014).
Contextual factors affecting cross-culture management
A range of contextual factors determines the cross-culture management that highlights
the effectiveness and success. Language is one of the key media that through provides an

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opportunity for the individuals to communicate. According to Thomas and Peterson (2017),
cross-cultural conflicts arise due to the difference in language and the expressions associated
with it. Communication among the employees, customers and the various stakeholders are based
on the language. Diverse language is present and used at the global scale that provides an
opportunity for the business organizations to communicate and establish an effective
relationship. Thus, while managing cross-culture, it is essential to consider, learn and aware of
the national or local language. This provides an opportunity for effective sharing of ideas, views,
cultures and norms among the individuals without offending them.
However, as criticised by Eisenberg et al., (2013), religious beliefs and cultures is another
major issue in cross-culture. This is because of difference and distinctive beliefs, norms, attitudes
and cultures of different religions. Religion is a mutual belief and ritual that is followed by the
individuals or the community thereby, influencing their living style and beliefs. Thus,
understanding and considering the religious beliefs is helpful in cross-culture management, as
this ensures respect for different cultures. Religious and ethical attitudes beliefs hamper cross-
culture management due to distinctive beliefs and values. For instance, while developing menus,
services and products, the religious values, norms and attitudes need to considered in cross-
culture management.
The individuals due to the difference in individual beliefs, attitudes, values and
background also influence cross-culture. As mentioned by French (2015), dynamism is promoted
by individuals while working together with different people under the same roof. However, as
argued by Chanlat (2013), lack of organizational loyalty and gaining organization-specific
knowledge is hampered if individualism is practiced. This gives rise to fierce and tough
competition between the individuals thereby, hampering the work environment. Individualism is

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highly noticed in cross-culture, as it consists of different individuals with different cultural
backgrounds. Thus, each individual prefers to stick to his or her own culture and understand the
cultures of other individuals. Individuals do not prefer to leave their personal agenda aside and
work according to the cultural norms and values of other individuals thereby, giving rise to
issues in cross-culture management. It is important to mitigate the cross-culture conflicts by
identifying the major issues that help in ensuring the effectiveness of the business. As
commented by Jyoti and Kour (2015), successful and effective managing of cross-culture
provides an opportunity for the business organizations to gain competitive advantage and sustain
in the market. As a result, it is easier to expand business globally thereby, earning huge profit
and revenue.
Suitable recommendations for effective cross-culture management
In order to ensure effective cross-culture management, cross-culture literacy, regio-
centric business policies, gathering knowledge about the cultures of the employees and
decreasing ethnocentrism are highly recommended. As commented by Reiche, Mendenhall and
Stahl (2016), the individuals and the business organizations need to have adequate cross-culture
literacy. This will provide an opportunity understand and develop the knowledge of each other’s
cultures and respect them while working together. Additionally, cross-cultural literacy also helps
the business organizations to develop business policies by considering the international and
national cultural values and norms. However, as argued by Jiang, Gollan and Brooks (2015),
minimizing ethnocentrism is more beneficial in managing cross-culture. This will help in
restricting the belief of superiority in the individuals and prevent conflicts. Additionally,
developing regio-centric business policies by gathering adequate information about the
employees will also help in effective cross-culture management.

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Conclusion
In this report, it can be concluded that managing cross-culture is difficult, as it deals with
individuals with different distinctive beliefs, values, cultures and norms. As a result, it is
important for the business organizations to manage cross-culture effectively in order to ensure
business expansion, generating profit and growing the customer base. This report mentions and
describes the various factors of Hofstede’s cultural dimension in order to understand its
effectiveness in ensuring cross-culture management and success of the business organization.
Effective cross-culture management can be ensured by considering social stratification,
individual beliefs and national beliefs. Thus, respect is a crucial factor in cross-culture
management, as this mitigates issues in managing it. Effective cross-culture management can be
ensured by promoting cross-culture literacy, minimizing ethnocentrism, developing local or
national business policies and gather adequate knowledge about the employees.

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References
Beugelsdijk, S., Maseland, R., & Hoorn, A. (2015). Are scores on Hofstede's dimensions of
national culture stable over time? A cohort analysis. Global Strategy Journal, 5(3), 223-
240.
Chanlat, J. F. (2013). Cross-cultural management: culture and management across the world.
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Dartey-Baah, K. (2013). The cultural approach to the management of the international human
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Business Administration, 4(2), 39.
Eisenberg, J., Lee, H. J., Brück, F., Brenner, B., Claes, M. T., Mironski, J., & Bell, R. (2013).
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French, R. (2015). Cross-cultural management in work organisations. Kogan Page Publishers.
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Khan, S. N. (2014). Impact of Hofstede’s Cultural Dimensions on Subordinate’s Perception of
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Kramsch, C. (2013). Teaching culture and intercultural competence. Blackwell Publishing Ltd.
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