Cross Cultural Management: Understanding Organizational Culture, Leadership, Motivation and HRM

This report discusses the impact of cross cultural management on organizational culture, leadership, motivation and HRM. It identifies the problems faced by Hydro generation in managing a cross cultural environment and suggests solutions based on various theories and models. The report emphasizes the importance of effective management in a diverse workplace.

CROSS CULTURE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CATEGORY-1............................................................................................................................3
CATEGORY-2............................................................................................................................5
CATEGORY-3............................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Cross cultural management refers to the study of cross cultures in an organization. It
includes the study of societal culture impact on the managerial practices (Tietze, 2021). It helps
an organisation in understanding the different cultures of people in their organization. It plays a
very significant role in today world as organization have bees trading globally. That is it deals
with different people of different cultures.
The report shows the problems that are being faced by the organisation in management of
cross cultural environment.
MAIN BODY
CATEGORY-1
ORGANISATION CULTURE
Organisation culture refers to procedural and behavioural norms that are observed within
an organization (Boussebaa, 2020). It includes ethics, norms, values, procedures, attitudes of
employees, their behaviour, code of conduct and goals. Organization culture also makes the
personality of an organization by defining its working environment. In other words it can be said
it a way in which things are done in a business. Theses are the unwritten rules which governs the
behaviour and attitude of employees. There are various factors such as management, leadership
styles, employees behaviours etc. which influences the organizational culture. The problem
identified in the case study was that organizational culture at Hydro generations was ineffective
in terms of leadership, management and diversity . This resulted high employee turnover because
of the unhealthy life balance. Also, it resulted in creating a negative environment affecting the
growth of the company.
Characteristics of effective organizational culture
According to the Barrett model of culture it suggests there are seven characteristics of an
organisational culture. This model is inspired by the maslow's need hierarchy theory and
identifies the seven key areas for motivation that are:
1. VIABILITY- It refers to ensuring stability in the organizational culture that is financial
stability, profits etc. which will help the organization in surviving and competing against
rivals in a long run.

2. RELATIONSHIP- It refers to having supportive relationship. That is having open
communication which help the organization in creating a culture where there is
democracy and freedom of speech and ideas. This will help the organization in improving
its performance thus lead to growth.
3. PERFORMANCE- It refers to having an organization culture that helps in achieving
excellence through higher productivity and efficiency.
4. EVOLUTION- It refers to courageous evolution in terms of innovation, empowerment,
autonomy, transformation etc. for effective organizational culture.
5. ALIGNMENT- It refers to having authentic expression such as trust, honesty, openness,
transparency etc.
6. COLLABORATION- It refers to cultivation of communities within the organization that
will help the business in expansion and lead to growth.
7. CONTRIBUTION- It refers to having a culture with a long term perspective and vision.
And acknowledging the social responsibilities.
Therefore, to have an effective organizational culture Hydro generation needs to inculcate
all these character that will help the company in building a strong organizational culture. That is
it needs to enhance its viability in terms of acquiring of financial resources. It needs to built
relationships with its employees by promoting diversity so that they can contribute more towards
the organization, it needs to acknowledge its social responsibility and create a lone term vision
that will help the company in expansion and growth.
Charles Handy's model of organizational culture
Organisational culture defines the behaviour of an organization but as it is intangible it
becomes difficult to understand (Desai and et.al., 2018). However, the role of an organizational
culture is to differentiation a business form others and provides sense of identity for the members
of the organization. Culture need not be consistent or logical. A effective culture will internally
consistent with clear vision and mission. Handy's model links the categorization of culture to the
organizational structure for effective formation of organizational culture. It identifies four types
of culture that are:
1. Role Culture- It is characterized by the organization that have high level of formalization
and centralization with a strict rules and regulations. It also follows strict formal chain of
hierarchy. Mainly used by the bid businesses and bureaucracies in a stable environment.

2. Power Culture- It is characterized by organization which have high degree of
formalization but low level of centralization. It is a culture that follows short lines of
communication. It used by small businesses in turbulent environment.
3. Task Culture- It is characterized by organization that have low degree of formalization
but has high level of centralization . It is a culture which is more flexible and is task
oriented. It also believes in cooperative team work. Hydro generation should inculcate
task related culture that will help the organization in enhancing their performance by
increasing cooperation and coordination between the employees. Also, it will respond
well in competitive environment.
4. Person Culture- It is characterized by the organization which have low degree of
formalization and centralization. It is culture centred towards creating an self directed and
self driven work environment. It is usually adopted by professional service providers in
predictable environment.
CATEGORY-2
LEADERSHIP IN ORGANIZATION
Leadership is the ability of leading group of individuals toward achieving objectives and
goals of the organization (Barmeyer and Moncayo, 2019). It helps an organization in setting
clear vision and objectives of the business to its employees. A leader in an organization guides
and motivates employees in achieving the set goals and objectives of the organization and also
help their employees in achieving their personal goals. Also, it helps the organization building
and boosting the morale of its workers thus, enchanting the performance of individuals as well as
the organization (Hao and Sun, 2018). Form the case study, it can be seen that the Hydro
generation is having an ineffective leadership style that is it lacks direction and transparency.
Also, it lacks in authority and listening skill. As a result it is affecting the organizational culture
and working environment.
Types of leadership styles
There are five type of leadership styles which are given below:
1. AURTHORITARIAN LEADERSHIP- It is a style of leadership which imposes
expectations and defines outcomes. It clearly defines the chain of command. Also, it
helps in reinducing the time spent on making crucial decisions as it is a one person show.

However, it results in increased employee turnover due to reduced creativity of
individuals.
2. PARTICIPATIVE LEADERSHIP- It is a style of leadership which is rooted in democratic
theory. That is the essences of this style of leadership is to involve employees and team
members in the process of decision-making which will result in generation of innovative
ideas and creativity. Hydro generation should inculcate this type of leadership style as it
will help them in reducing their employee turnover and thus, increasing their productivity
level. As high job satisfaction and motivation will lead to high productivity
automatically.
3. DELEGATED LEADERSHIP- It is a type of leadership that focuses on delegation of
initiatives onto the team members. It will help in creating a positive work environment.
Hydro generation can also use this style of leadership will help in engaging more
employees by providing them full responsibilities and creating an inclusive work
environment.
4. TRANSACTIONAL LEADERSHIP- It is a style of leadership which uses transactions
between employees and leader such as rewards and punishments. This type of style helps
in creating specific, time bound measurable goals which are achievable for the workers.
However, it minimizes creativity and innovation.
5. TRANSFORMATIONAL LEADERSHIP- It is a style of leadership where leader
empowers and encourages his followers to achieve the vision and objectives of the
organization. It uses inspiration and motivation as a support to gain the employees
support. Also, it values relationship and result in low turnover of employees.
Theories of leadership
Leadership theories are the explanation of why and how certain individuals become
leader. It focuses on the behaviours and traits which individuals adopt for increasing their
leadership capabilities that influences the organization structure and culture (Dudin and et.al.,
2019). Traits include ethics and morale standards, nurturing growth in employees or fostering
belongingness and connection among employees etc. There are various theories of leadership
that are as follows: BEHAVIOURAL THEORY- It is a theory that focuses on the behaviours of the leaders
and how these traits can be copied from other leaders. This theory suggests that leader is

not born, they are created on the basis of learnable behaviour. It mainly focuses on the
cations of the leader. It provides leader with flexibility and allows them to adopt
according to the circumstances prevailing in the environment. CONTIGENT THEORY- This theory focuses on the context of the leader. It is also called
situational theory that is it looks at the effects of situation on the success and failure of
leaders (Mahadevan, 2017). The effectiveness of leader is directly determined by the
situational circumstances. It focuses on the importance of situation. However, it does not
focus on the psychology of employees and the organization itself. PARTICIPATIVE THEORY- It a theory which suggest that employees should directly
participate ion the decision-making process of the company this theory helps in
increasing participation and opens a door to creativity and innovation. Hydro generation
should use participative theory of leadership for effective leadership in their company.
With the use of this theory it will help the company in reducing its employee turnover by
increasing participation of employees. This will result in boosting motivation and morale
of the employees and will the company towards growth.
 MANAGEMENT THEORY- It is also known as the transactional theory . It focuses on
supervision, group performance and organizing. It is system of punishments and rewards.
It helps in reinforcing positive working environment.
CATEGORY-3
MOTIVATION AND HUMANR RESOURCE MANAGEMNT
Motivation is a process through which an individual behaves an act towards a certain
activity from beginning to end (Tjosvold and Leung, 2017). It drives an individual to behave in
particular way. It is a very important factor in driving the ambition of an individual in going
work. On the other hand, human resource management is a practice of hiring, recruiting
managing and deploying firm's employees. The role of HRM is to manage the employees of the
organisation to achieve the desired goals and objectives by reinforcing the organisational culture.
HRM also, plays an important role in boosting and enhancing the motivation of employees by
providing higher job satisfaction (Jackson, 2018).
However, from the case study it can be identified that Hydro generation have a poor
human resource management practices that is there is no proper life balance which is resulting in

low job satisfaction and thus, resulting high employee turnover. Also, There is low levekl of
motivation among the employees of the organization.
TYPES OF MOTIVATION
Motivation is driven by various factors which are influenced by the attitude and
behaviours of different individuals. Based on the several factors and its impact on individuals,
there are 4 types of motivation. The different types of motivation are:
1. INTRINSIC MOTIVATION- This is a type of motivation that comes from within an
individual to perform and achieve a desired goal Chen, 2018). It is one's feeling of
belongingness and love which drives them to achieve desired objectives. It includes
social acceptance, biological needs, desires, eating food etc. however, this type of
motivation is lacking in the Hydro generation that is employees do not feel belongingness
towards the organization and also, their biological needs are not fulfilled. HRM of the
company should focus on creating an environment which is inclusive and promotes
diversity with belongingness.
2. EXTRINSIC MOTIVATION- It is a type of motivation that drives the individuals due to
the external parameters (McNulty and Brewster, 2020). It means that some other
individual or a company motivates the employees to work for achieving the objectives of
the company. It includes motivation through financial rewards, bonuses, promotion etc.
Hydro generation's HRM should inculcate practices of extrinsic rewards that will help the
organization in retaining its employees by providing them higher job satisfaction.
3. POSITIVE MOTIVATION- This type of motivation drives the employees of the
organization by offering them positive rewards and accolades for fulfilling their roles
duties effectively and efficiently. Hydro generation should use this type of motivation
that will help them to drive their employees to work efficiently and effectively with
higher productivity.
4. NEGATIVE MOTIVATION- It is a type of motivation where threat and fear are the
parameters used for getting work done. In negative motivation, employees are threatened
with things like reduced benefits, demotion and withdrawing merits etc. it is mainly used
by organization whose performance is declining.
Maslow's need hierarchy theory of motivation

Effectively motivating the employees is one of the biggest challenge that is being faced
by the Human resources management of an organization (Ma and Kang, 2020). Therefore, it very
important for management in understanding the psychological process which is involved in
motivating employees so that they can be directed towards achieving organizational goal
effectively. With the need hierarchy theory it helps in identifying the internal factors that help in
motivating the employees. It consists five stages that are:
1. PHYSIOLOGICAL NEEDS- These are the basic human survival needs such as forod,
water, clothes, shelter etc. (Peltonen, 2020). Hydro generation should be accountable for
providing physiological needs by providing its employees with comfortable working
conditions with reasonable working hours.
2. SAFETY NEEDS- This includes the needs of security an well being of an individual. For
example, it includes financial security, personal security, good health etc. Hydro
generation should provide its employees with safe working environment with job security
and secure compensation especially in the dynamic environment.
3. SOCIAL NEEDS- It includes the need of feeling belonged and accepted. This is
considered one of the most important needs, so that individuals do not feel isolated and
depressed. HRM of Hydro generation should provide its employees an environment that
encourages teamwork and diversity. And an environment that promotes work life
balance.
4. ESTEEM NEEDS- It refers to the needs of respect and self esteem (Cramer, 2018).
Managers at Hydro generation should provide its employees with esteem needs by
offering recognition and praise when they perform well.
5. SELF ACTUALIZATION NEEDS- These are described as the final needs that is when an
individual reaches its full potential. At this stage, Hydro generation can provide
challenging work that keeps motivating the employees and invite individuals in decision
making and giving them flexibility and autonomy in their job roles.

CONCLUSION
From the above report it can be concluded that there are various problems that are being
faced by the organization in management of cross culture practices. That is with the ineffective
organizational culture of Hydro generation it is affecting the productivity and profitability of the
organization as it is creating a negative environment for its employees. There are various
characteristics that need to be kept in mind while inculcating an organization culture. Also, it can
be summarized that Hydro generation is lacking in leadership that is leading to high employee
turnover and affecting the revenue generation of the company. Furthermore, it can be concluded
that there are various actions that are taken buy the organization in achieving cross culture
diversity by implementation of various models and theories.

REFERENCES
Books and journals
Barmeyer, C., Bausch, M. and Moncayo, D., 2019. Cross-cultural management research: Topics,
paradigms, and methods—A journal-based longitudinal analysis between 2001 and
2018. International Journal of Cross Cultural Management. 19(2). pp.218-244.
Boussebaa, M., 2020. From cultural differences to cultural globalization: towards a new research
agenda in cross-cultural management studies. critical perspectives on international
business.
Chen, C.C., 2018. Yin-yang dialectics and communitarianism in cross-cultural management
research. Cross Cultural & Strategic Management.
Cramer, T., 2018. Cross-cultural management in China: Competencies of Chinese business
students. Journal of Eastern European and Central Asian Research. 5(2).
Desai and et.al., 2018. Teaching cross-cultural management: A flipped classroom approach using
films. The International Journal of Management Education. 16(3). pp.405-431.
Dudin and et.al., 2019. Cross-cultural management in the system of harmonization of interests in
the multi-confessional educational environment. European Journal of Science and
Theology. 15(3). pp.191-199.
Hao, Y., Farooq, Q. and Sun, Y., 2018. Development of theoretical framework and measures for
the role of social media in realizing corporate social responsibility through native and
non‐native communication modes: Moderating effects of cross‐cultural
management. Corporate Social Responsibility and Environmental Management. 25(4).
pp.704-711.
Jackson, T., 2018. What makes cross-cultural management scholarship critical? It depends on
how we understand ‘culture’.
Ma, C.H. and Kang, H.H., 2020. Validation of the mediation effect between cross-cultural
management and employee identification. Psychology research and behavior
management. 13. p.169.
Mahadevan, J., 2017. A very short, fairly interesting and reasonably cheap book about cross-
cultural management. Sage.
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McNulty, Y. and Brewster, C., 2020. The Changing Context of Expatriation and its impact on
Cross-cultural management'. The SAGE Handbook of Contemporary Cross-Cultural
Management. London: Sage. pp.424-438.
Peltonen, T., 2020. 16 The Role of Religion in Cross-Cultural Management: Three
Perspectives. The SAGE Handbook of Contemporary Cross-Cultural Management.
Tietze, S., 2021. Cross-cultural management revisited: A qualitative approach.
Tjosvold, D. and Leung, K., 2017. Cross-cultural management: foundations and future.
Routledge.
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