Investigation of issues encountered by CEOs in leading a global company with different cultural background

This research aims to analyze the issues encountered by CEOs while leading a global company with different cultural background and suggest recommended actions for mitigation.

Running head: CROSS CULTURAL MANAGEMENT
CROSS CULTURAL MANAGEMENT
Name of the student
Name of the university
Author note

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Abstract
Purpose: The purpose of initiating the research is to analyze the different issues that might be
encountered by the CEOs due to the differences in the cultural backdrops of the same with the
organization. The different modifications that are commenced by the organizations are based
on the collaborative functioning of the management with the workforce. However, the
differences in the cultural aspects between the CEO and the organization might create
confusion.
Design/methodology/approach: The study will be conducted through the application of the
interpretivism philosophy, which will support in analyze ing the human- centric cultural aspects
and the manner in which it is applicable in the context of distinctions in the cultural aspects of
the CEO and the organization. On the other hand, deductive approachwill assist in ensuring the
quality of the research through evaluation of existing frameworks and theories. Exploratory
research design will assist in delineating the different issues that are encountered by the CEOs
while managing the diverse organizational operations in a multi- cultural backdrop. The
secondary data collection method will be utilized in the research study to enrich the same while
retrieving important information on the topic.
Findings: The findings of the research will portray that the cultural differences between the CEO
and the organization might affect the overall performance of the venture. Therefore, the
research will portray the issues and thereby suggest recommended actions for mitigation the
same in the cross cultural context.

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Research limitations/implications: The research will be limited by time and lack of sufficient
literature based resources
Practical implications: The research will assist in developing future insight on the different
issues that might be encountered by the CEOs due to the constant changes in the cultural
aspects in organizations
Originality/value: The research will support in analyze ing the implications that are
encountered by the leaders while managing a cross cultural organization

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Table of Contents
1. Introduction.................................................................................................................................5
1.1 Background............................................................................................................................5
1.2 Aim of the research...............................................................................................................6
1.3 Research problem..................................................................................................................6
1.4 Research objectives...............................................................................................................6
1.5 Research questions................................................................................................................7
2. Literature Review.........................................................................................................................7
Communication............................................................................................................................7
Power distance............................................................................................................................8
Perceptual difference..................................................................................................................9
Alternative lifestyle......................................................................................................................9
Ethnic and cultural difference...................................................................................................10
3. Methodology.............................................................................................................................10
3.1 Research philosophy............................................................................................................10
3.2 Research approach..............................................................................................................11
3.3 Research design...................................................................................................................11
3.4 Data collection process........................................................................................................12
3.5 Ethical considerations..........................................................................................................12
3.6 Time frame...........................................................................................................................13
4. Findings......................................................................................................................................13
5. Limitations of the study.............................................................................................................15
References.....................................................................................................................................16

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Topic: Investigation of issues encountered by CEOs while leading a global company with
different cultural background
1. Introduction
1.1 Background
The cultural differences between the CEO and the concerned organization might affect
the capabilities of the leader in influencing and motivating the employees. On the other hand,
the different modifications that are scheduled by entrepreneurs are based on their
understanding of the needs of the business in the competitive global markets. The
contradictions between the culture of the CEO and the organizational operational objectives or
culture might affect the design of the processes. Al Saifi (2015) stated that the
culturaldifferences between the CEO and the businesses have assisted the same in continuing
with the effectiveness of the operations in adherence to the demand encountered by the
same. The mitigation strategies that are commenced by the CEOs assist the businesses in
enhancing the operations in contingent situations. The assessment of the cultural background
assists in delineating the different ways in which it affects the performance of the venture. On
the other hand, the assessment of the differences between the organizational and the personal
cultural backgrounds might result to conflicts and interruption sin the production process
(Scuotto et al. 2017).
The different modifications that are initiated by the organizations are dependent on the
uninterrupted functioning of the unitswhile adhering to the instructions that are provided by
the CEOs. However, the contradictions in the cultural beliefs of the CEO with the workforce
might create conflicts in the business operations. The different modifications that are
considered by the concerned organizations are dependent on the decisions that are
commenced by the CEO. However, the mismatch in the cultural aspects between the CEO and
the company or the workforce might create serious conflicts. Lewin (2014) noted that the
collaborative functioning of the workforce along with the managementassist an organization
in enhancing the performance of the same while operating in diverse global markets.

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1.2 Aim of the research
The aim of initiating the research is to examine the issues encountered by CEOs while
leading a global company with different cultural background.
1.3 Research problem
The research will analyze the different issues that might be encountered by the CEOs
in the cross- cultural context. It will assist in continuing with the effectiveness of the operations
in adherence to the demands of the business. The contradictions in the management style and
the expectations of the workforce might affect the capabilities of the same in continuing with
the effectiveness of the operations. Thedifferentaspects of change that are commenced by the
organization are dependent on the collaborative functioning of the management with the
workforce. On the other hand, the problem with the accents and fluency might affect the
capabilities of the CEO in facilitating suitable communication with the workforce. Epstein,
Santo and Guillemin (2015) noted that the communicability of the leaders assist the same in
motivating and empowering the activities of the workforce. Therefore, the differences in the
organizational culture and the leadership culture or attitude of the CEOs might affect the work
processes while adhering to the competitive advantage related requirements of the same.
On the other hand, the contradictions between the CEOs culture and the organizational
culture might affect the attitude of decision making and modifications in the process design.
The diverse modifications that are commenced by the CEO assisted the venture in continuing
with the effectiveness of the operations in adherence to the demand of the businesses (Mach
and Baruch 2015). Therefore, the research will aim at analyze ing the different issues that
might be encountered by the CEOs while managing a global organization, which holds a
culture distinct from the leader.
1.4 Research objectives
The objectives for initiating the research will be:
 To understand the value of corporate culture and its contribution to the firm
performance
 To examine the role of CEO in influencing organizational culture

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 To evaluate the issues that the CEO might facewhile managing a global organization
holding a distinct culture from the person
 To suggest recommended activities for CEOs while managing diverse cultural
organizations
1.5 Research questions
The research questions will be:
 What is the value of corporate culture and how does it contribute to the firm
performance?
 What isthe role of CEO in influencing organizational culture?
 What are the issues that the CEO might facewhile managing a global organization
holding a distinct culture from the person?
 What recommended activities might be considered by theCEOs while managing diverse
cultural organizations?
2. Literature Review
Communication
According to Bird and Mendenhall (2016) communication is the biggest problem that
the CEOs are facing while coping with different organizational culture. In a diverse workplace,
employees from the different language create problem because they do not have enough
knowledge regarding others’ language. Therefore, it becomes highly problematic for the CEOs
to choose and set the right language so that every employees can speak in. It creates huge
damage to the existing communication and the adverse impact can be seen in case of the
organizational productivity. In a global organization, the entire workforce is divided into
separate departments and teams. Each of the team has a team leader and the leader is entitled
to make direct communication with the CEO. However, difference in language creates huge
problem for the CEO and the team leader to understand each other positively. From the
research of Moore (2015) it can be articulated that language is intricately associated with the

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communication practice and cultural differences are responsible to create huge barrier among
people to express their own interests and understand the difference the words that others are
telling. This difference in language obstructs the exchange in ideas among not only the
employees but the higher management also feels the pressure to communicate with the
colleagues or the subordinates. As a result of that it became severe problem for the workforce
to understand each other’s propositions properly and it results to damage innovation and
creativity extensively.
Power distance
Power distance is considered to be an important aspect for the organization to create a
better working culture on the basis of the organizational hierarchy. However, diversity in
culture affects the existence of the organizational structure robustly in order to bring more
efficacy into the practice. Stahlet al. (2017) opined that power distance in the western countries
is more relaxed and flexible enough that brings the organizational executives and the
employees to get equal rights to take the decisions. On the other hand, Gelfand and McCusker
(2017) showed that in the Asian regions the employees did not have the power to take
decisions. The management only enjoys that task. As a result of that in a global organization it
was highly problematic for both the employees and the CEO to formulate a god organizational
environment. In other words, it can be argued that if the management practiced high power
distance in that scenario it will be a problem for the employees who are not familiar with the
authoritative nature of the CEO. On the other hand, in a less power distance organization,
employees who are not familiar with the culture of decision man\king by both the employees
and the management, will suffer unaccustomed as it is beyond their imagination to understand
the practice in actual. Based on this perception, it can be argued that the CEOs can face
problem in order to set the exact organizational culture and decision making process that the
employees are familiar with.
Perceptual difference
Dupuis (2014) pointed out the conceptual gap between the employees and the CEO can
be a real problem in course of diverse workplace culture. The perceptual problem can be

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defined in different terms. Stahl and Tung (2015) mentioned that the perceptual different
connoted an altered perception between the employees and the organization. There are series
of reasons that can contribute to the difference of opinion among the employees. For instance,
communication gap and language differences are contributed a lot in the process of making
perceptual difference where the CEO and the employees could not understand what are being
instructed to them. On the other hand, there are also difference in terms of the organizational
culture. In most of the cases, the organizations are no longer in a shape to understand
employees from different cultural background are believed. In fact, different cultures have
different framework that are unique. For instance, in the Asian cultures the relationship
between the employees and CEO is more of a respective and the employees are no longer in a
position to make conversation with the CEO. On the other hand, in Western culture an amicable
and friendly behavior between the organization and the employees can be identified that can
help to shape a better and unique relation between the employees and the top executives even
with the CEO. Therefore, this perceptual problems can contribute to the process of obstructing
the ideas of the employees and the executives and adversely affected the organizational
practice.
Alternative lifestyle
Lifestyle is also contributed to create a difference between the CEOs and the employees.
It can be stated that there should be a clear distinction between the personal and professional
lifestyle. The concept of work life balance is also came from that perception where the
organization is responsible to create a better time frame so that the personal and professional
life can not intervene in each other’s performance. The notion of alternative lifestyle is a new
concept but has its roots within the diverse workplace practice. The sexual orientation and the
gender differences are also considered to be an intricate part of the paradigm of alternative
lifestyle. Based on the research of Primecz, Mahadevan and Romani (2016) discrimination in an
MNC can be created due to the alternative lifestyle practice. In the western countries especially
in UK and US people are more flexible and easy to blend with others irrespective of their
difference in lifestyle. On the other hand, in the rest of the world there are still stigma and
prejudices that can contributed to the process of instigating the practice of discrimination. It

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does not mean that discrimination in the west does not occur but the rate is comparatively low.
Therefore, it also affects the organizational practice as well and ushers discontinuation in the
organizational productivity in a havoc.
Ethnic and cultural difference
The cultural and ethical differences are the most common issues that the diverse
workplace are suffered with. The research of Dawkinset al. (2016) figured out that the diversity
in workplace is comprised of different culture, religion, ethnicity and colors. Therefore, it was
obvious that the cultural distinctiveness is differed in course of implementing diversity in
workplace. It can be stated that the highlighting different ethnic and cultural aspects is really a
challenge for the CEOs before incorporating into the organizational practice. Chen, Wu and Bian
(2014) portrayed a clear identification of the organizational policy making that is closely
associated with the practice of workplace diversity. It is important for the CEO to plan the
organizational policy before taking the initiatives. As a result of that the success of the
organization relies on the organizational policy. Henceforth, it can be argued that the CEO can
face grave problem while establishing a policy for workplace diversity.
3. Methodology
3.1 Research philosophy
The research philosophy assists in enhancing the quality of the study through the
application of appropriate paradigm. In this relation, the study will be conducted through the
application of the interpretivism philosophy, which will support in understanding the human
related experiences of the people and the recognition of phenomenological attributes of
humans. The research will delineate the issues that are encountered by the CEOs while
operating in organizations here there is a cultural conflict between the ideals of the leader and
the operations. In this context, the identification of the attitude and behaviour of the CEOs
willassist in analyze ing the manner in which the contradictions affect the management of a
global business. The interpretivism philosophy will assist in analyze ing the concept relating to
social constructivism. The concept of social constructivism will aid in analyze ing the

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development of the CEOs in diverse cultural social conditions through interactions and
collaboration with the workforce. The development of CEO’s role in adherence to the
organizational culture will assist the same in reducing the conflicts in the ideologies while
supporting the uninterrupted functioning of the systems (Doh and Quigley2014). The diverse
range of alternatives that are commenced by the organizations has assisted the same in
continuing with the effectiveness of the operations in adherence to the diverse culture of a
global organization.
3.2 Research approach
The research approach will assist in guiding the study to the desired outcome of the
same for which the study is being planned. The current research will be commenced through
the deployment of a deductive approach, which will assist in enhancing the quality of the
research through the application and evaluation of existing frameworks and theories. The
application of the deductive approach will assist in enhancing the scope of achieving the
objective for which the study is being planned. In this context, the research will aim at analyze
ing the different issues that might be encountered by the CEOs while operating in a diverse
cultural organization with wider distinction that exist between the ideologies and beliefs of the
CEO and the venture.
3.3 Research design
The research design provides the study with the framework or a blueprint for the
guiding the activities of data collection and analysis. The application of appropriate research
design will assist in enhancing the quality of the study through systematic functioning while
adhering to the objectives of the current study. The current research will be commenced
through the application of exploratory research design,which will assist in delineating the
different issues that are encountered by the CEOs while managing the organizational
operations in a multi- cultural situation. The application of the exploratory research design will
assist in ensuring the effectiveness of the research study through a better understanding of the
issues that might be encountered by the leaders while managing the operations in a diverse
workforce (Lückmann 2015). The assessment of the different issues that might be encountered

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by the CEOs while managing a diverse cultural organization will assist in enhancing the study
through suggesting different recommended activities. The recommended activities will assist
the CEOs in continuing with the effectiveness of the operations in adherence to the demand
encountered by the venture. On the other hand, the suggested recommendations will assist
the CEOs in developing the performance of the venture in the competitive global environments.
3.4 Data collection process
Data collection forms the most important part of the research study as it assists in
enhancing the study operations and thereby guides the research towards achieving the
favorable outcome while adhering to the objectives. In this context, the concerned research will
be initiated through collection of data from the secondary sources. The secondary data
collection method will assist in enriching the study while adhering to the objectives of the
same.The major objective of the research is to analyze the issues that might be encountered
by a CEO while managing a global organization in the cross- cultural scenario.In this relation,
the secondary data collection will assist in enhancing the study’s activities through evaluation of
data from different available peer reviewed journals, blogs, articles, company reports and
newsletters. Theidentification of the different sources of information and the data from the
existing frameworks will support the research in enhancing the scope of the same. On the other
hand, the deployment of the different sources of secondary sources will ensure the unbiased
outcomes of the research. Therefore, the deployment of the secondary research will assist the
study in continuing with the effectiveness of analyze ing the issues that might be encountered
by the CEOs while managing global organizations in the cross- cultural context.
3.5 Ethical considerations
The research will be commenced while adhering to the proper code of conduct as the
secondary data will be collected from reliable and authentic sources. The authenticity of the
data assists in enhancing the scope of achieving positive results while adhering to the objectives
of the study. The assessment of the authentic and reliable sources of information will assist in
ensuring the validity of the research.

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3.6 Time frame
Task Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Selection of topic
and search for
justification
Constructing
literature
Selecting
appropriate
methods
Data collection
Data analysis and
representation
Reviewing the
outcomes
Conclusions and
recommendations
Submitting draft of
the project
Printing and final
submission
Table 1: Table showing the timeframe of the entire research
(Source: As created by author)
4. Findings
The research will reflect on the different instances and issuers that might be
encountered by the CEOs while managing cross- cultural global organizations. The assessment
of the different literatures assisted in analyze ing the different conflicting situations that might

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be encountered by the CEOs while managing an organization, which consists of a completely
different culture. The research delineated that communication and interaction with the
employees in the cross- cultural context might affect the capabilities of the CEO in making the
same aware of changing needs of the organizations. Lack of suitable communication might
affect the capabilities of the CEO in continuing with the effectiveness of the work processes.
The research delineated that the communicational barriers might be mitigated through the
implementation of suitable understanding of the different cultures in the workforce. The
differences in the organizational and CEO’s culture might also result to maximization of the
power- distance gap between the management of the venture and he workforce. The
maximizationof the power distance gaps might affect the capabilities of the CEO in adapting to
the organizational culture which h would affect the decision making skills of the same.
However, the research will also portray the remedial action that might be commenced by the
CEO in order to empower the activities of the workforce through the minimization of the power
distance gap.
The research will delineate the manner in which the long term aspirations of
sustainability of an organization might be affected through the short term goals that are set by
the CEO for the short span profitability. The orientation and the objectives of a ventureare
dependent on the organizational culture. However, the changes in the outlook and cultural
affinities of a leader might affect the capabilities of the same in managing the operations of a
global venture. The differences in the objective, design of decision making capabilities and
communication with the subordinates might affect the capabilities of the leader in continuing
with the effectiveness of the operations while adhering to the sustenance related needs of the
business. The research will portray that the active involvement of the leader in the
organizational operations and the cultural assimilations assists an organization in developing
the potentials of the same. On the other hand, the differences in the culture of the organization
and the CEO might also result to distinctive confusion in the systems and process designs.
Therefore, the contradictions between the culture of the CEO and the organization might affect
the performance of the venture.

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On the other hand, the research will also reflect on the recommended activities that
might be commenced by the leaders for enhancing the collaborative functioning of the same
while adhering to the culture of the organization. Communication might be commenced as the
foremost barrier in the context of cross-cultural management. Therefore, the leaders might
take steps to ideology and the cultural elements of the organization in order to facilitate
suitable communication among the management and the work force. It will assist the CEO in
enhancing the operations and the process design of the venture. Therefore, the research will
assist in not only analyze ing the issues but also the recommended activities that might be
commenced by the leaders with the aim of aligning their interest with the organizational
culture as it would support the venture in enhancing the profitability of the same in the
competitive markets.
5. Limitations of the study
The study will be limited by the poor access to relevant sources of data on the cultural
elements. The lack of sufficient access to the relevant and authentic source s of data for the
study might affect the outcome of the study. Moreover, the lack of limited access to the data
sources might affect the quality of the research findings. On the other hand, the lack of
sufficient time might affect the quality of the data analysis process and thereby result to biased
outcome.

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