Cross Cultural Management

This study explores the concept of cross cultural management and its significance in dealing with diverse cultural backgrounds. It focuses on organizational culture, leadership, ethics, and corporate social responsibility through case studies of Google, Starbucks, and Tesco.

Cross Cultural Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Category 1: Organizational culture.........................................................................................1
2. Category 2: Leadership...........................................................................................................3
3. Category 3: Ethics and Corporate social responsibility..........................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Cross Cultural Management is the study which tends to significantly
influence the societal culture associated with the management practice and
managers. The cross cultural management is considered to be highly
important because it is significant to effectively deal with the people who
comes from varied cultural background (Bird and Mendenhall, 2016). Cross
cultural management is to manage the employees of the organization who
tends to come from the diverse group. The key issues associated with the
cross cultural management is linked with the cultural differences, diverse
rituals, language problem, instability within the political circumstance and
belief. This study will highlight on the organizational culture, leadership,
ethics and corporate social responsibility. The first case study is based upon
the organizational culture of the google. Another case study is related with
the leadership practice of the Starbucks Company. Lastly, the case study
tends to mainly comprise of the ethical and CSR practice of the Tesco
Company. This study is significant in developing the appropriate set of
recommendation for attaining the practicable solution associated with the
company. The key main issue upon which the company focus is to improve
the diverse culture and carry out the organizational activities in a legal and
reliable manner.
MAIN BODY
1. Category 1: Organizational culture
Definition
Organizational culture is referred to as the specific underlying belief, values, ways and
assumptions associated with the interacting which has highly contributed to the unique set of
psychological and social environment of the organization. It is mainly linked with the internal
behaviour and values associated with the organization. It mainly comprise of thinking, belief,
experience and future expectations (French, 2015). The organizational culture is considered to be
highly significant because it is highly significant in identifying the internal and external
capabilities of the business. A well-structured organizational structure is useful in assisting with
the on- boarding and helps in retaining the prospective employees within the organization. It is
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also useful in attaining the core values of the company with high degree of accuracy and
relevance. The key issue associated with the organizational structure is that, they employees of
the organization are bored and another issue is that, communication within the organization
flows down.
Case study with chosen issues of topic
The company like Google tends to mainly focus on adapting to the adhocracy culture.
The key primary focus on the company is to take risk and focus on innovation. It focuses on
providing cutting edge competition by the Google. The culture of the Google is to develop the
next big thing before it competitors by encouraging the employees of the organization to
encourage creativity and bring wide set of ideas to the table. The employees take decision within
the organization. This type of organizational culture in turn helps Google company in
establishing the market position and leads to high degree of success to the company (Holden,
Michailova and Tietze, 2015). The adhocracy culture mainly contributes to high profit margins
by focusing on creating new set of ideas. The Google Company tends to have flat organizational
structure. The open culture of the Google leads to free flow of information across the company.
This is an effective way of communicating with the employees to transmit information in a
reliable manner. It helps in sharing the opinion and idea. The google organizational culture has
its own set of uniqueness and distinctiveness when compared with the immediate set of
competitors. The Google Company has been struggling with the key set of external and internal
set of criticism over the past years. This results in lack of cultural diversity and tends to affect the
business performance and productivity of the company.
Application of relevant theories
Use of Hierarchy structure within the organization is considered to be highly relevant
which is useful in clearly defining the corporate level. This helps in creating a formal
environment where it helps in formally transmitting true set of information which is significant
in monitoring and coordinating the activities. It helps in effectively communication wide set of
information which helps in improving the coordination to attain common goals and objectives
(Johnson, and Cullen, 2017).
Complying with the adhocracy culture helps in contributing to high profit margins by
focusing on creating new set of ideas. The employees of the Google Company in turn are highly
motivated to communicate new ideas and implement innovation within the organization.
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Communicating with the employees in the language which they understand and communicate is
considered to highly relevant in improving the operational efficiency of the business.
Appropriate set of recommendation
The Google Company must effectively focus on establishing the clear goals and values of
the company in order to effectively attain higher operational goals and objectives. The Google
Company also focuses on establishing the strong set of relationship between the employer and
the employee to improve the innovation within the company. It helps in promoting the trust and
it also helps in attaining wide set of goals associated with the company. The Google Company
must encourage all the employees of the company to get indulged in innovative activities to
improve the market share and market position (Luo, 2016). The organization must comply with
the 7 C’s of the communication i.e., concise, correct, courteous, clear, candid, complete and
concrete to improve the transmission of the right message to the right person without actually
affecting the business operations. The Google Company must employ and respect diverse group
of people who tends to belong to the different culture. This way it is useful in transmitting the
varied set of information in a reliable manner to attain organizational goals.
2. Category 2: Leadership
Definition
The leadership is referred to as an art of motivating individuals within the organisation in
order to perform certain set of activities and duties to improve the organisational goals and
objectives. The leadership is useful in directing and effectively developing a strategy in order to
meet the needs of the company (Putranto, Gustomo and Ghazali, 2015). Leaders are considered
to be the inspiration and directing the action plan. The key skills associated with the leaders are
awareness, integrity, relationship building, communication, leadership skills, honesty and
innovation. A good leader must always have a clear mission and must take appropriate set of
decision in difficult times. The key issues which is mainly linked with the leadership is lack of
clear vision of the leader, poor execution of the plan, lack of accountability and failure for
effective communication are considered to be as the key problems associated with the leadership
within the organisation. These issues linked with the leadership might affect the operations of the
company which leads to lower productivity and performance.
Case study with chosen issues of topic
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Starbucks is considered to be as one of the most affective measure which has in treating
the employees well within the organisation. The Starbucks tends to offer various set of insurance
benefits, retirement plans and stock options. In the year 1997, the Starbucks Company has faced
crisis when three employees has been killed at the time of robbery in Washington DC. However,
The outstanding leadership of the chief executive officer Howard Schultz was demonstrated
when he flew to the Washington DC and has spent a week with the co-workers and the families
of the three employees who has been killed at the time of robbery (Richter, and et.al., 2016). In
some other cases leaders have stayed far away from this tragic situation but Schultz natural
leadership traits has prevailed. Moreover with the degree of compassion, dedication and
approachability have some compliance with the need of the partner and did what was right in
such tragic situation. However this has created good image in the eyes of public and more
favourable for Starbucks.
Application of relevant theories
The situation leadership theory which has been created by the Ken Blanchard and Paul
Hersey tends to demonstrate that, it is very important to choose the right leadership style for the
right set of people. This is an effective leadership style which helps in adopting to the high set of
effective leadership style which is considered to be highly prominent at the time in of the specific
situation (Romani and et.al., 2018). This leadership theory is considered to be effective which
helps the CEO Howard Schultz to effectively deal with the tragic situation in the right manner.
The trait theory of leadership tends to specify the natural qualities which are inherent in
the good leaders. It is very important for the leader to be an excellent communicator and a
listener which helps in understanding the need of the other person and direct the employs of the
organisation to work in a certain manner to attain organisational goals and objectives. In this
specific case study, the CEO Schultz has natural leadership traits which helps in taking the best
possible action plan to improve the performance and productivity.
Appropriate set of recommendation
In order to improve leadership within the company it is very important for a leader to take
responsibility for the specific situation. As in the case study of the Starbucks, the CEO Howard
Schulz has taken complete responsibility to act in the right and prominent manner to deal with
the tragic situation at the time of robbery. He has set an example and share the glory to perform
certain tasks and take necessary decisions in the right an appropriate manner. The leader must be
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courageous and assertive to improve the operational performance and productivity. Starbucks
thinks the greater set of leadership within the organization is considered to be highly important.
The Schultz tends to significantly believe that, the respect and dignity for all the employees
within the organization must be highly motivated to improve the performance and cross cultural
management.
3. Category 3: Ethics and Corporate social responsibility
Definition
The business ethics and referred to as the study which helps in carrying out various set of
business operations and ethical and reliable manner by complying with specific set of policies
and practises (Thomas, and Peterson, 2016). It is significant in eliminating business practice such
as corporate governance, bribery, insider trading, corporate social responsibility, discrimination,
fiduciary responsibility, etc. Ethics and corporate social responsibility within the organisation
helps in bringing wide set of benefits to the business which helps in attracting customers to boost
up sales and profitability. Corporate social responsibility is highly significant in effectively
committing to manage the environmental, social and various set of economic benefits to
effectively comply with the ethical business practice.
Case study with chosen issues of topic
In the case study of the Tesco Company, the key issue which has been faced by the
company. The key ethical issue which has been faced by the Tesco Company in the year 2018 is
associated with committing to enforce existing bans on the use of plastic items and phthalates.
Tesco did not mention the use of risky chemicals like Parabens and triclosan. This has resulted in
toxic rating for the company and has lost wide set of market because of toxics and pollution
within the specific rating system.
The second issue is associated with the Corporate social responsibility. The key issues
which has been faced by the Tesco is associated with colleagues, customers, suppliers,
community, environment, use of technology, raw material, ethical trading, community program
and animal welfare. However these are the key issues on which Tesco company concentrate. The
Tesco Company has significantly failed to follow specific set of policies associated with the
corporate social responsibility not providing the stakeholders and employees of the organisation
with minimum ethical features.
Application of relevant theories
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Complying with the corporate social responsibility theory is highly significant in
affirming with the legal, economic, ethical and philanthropic set of obligations. However, the
corporations are considered to be highly prominent to work responsibly by seeking high degree
of sustainability in the social, economic and environmental realms (Cross-cultural Management
– Explained, 2019). Utilitarianism ethical theory is considered to be highly significant in
determining the right from the wrong by effectively focusing on the key outcomes. This is
considered to be as one of the greatest good which helps in improving the functioning of the
organization. Virtue theory is considered to be as the broad term which tends to mainly
emphasize on the key moral philosophy by doing one’s own duty and helps in bringing good
consequences.
Appropriate set of recommendation
The business ethics of the Tesco Company mainly comply with the maintenance of the
standards related with international labours and ethical trading which helps in reducing the cost
of production and also increase in the price of the products. This is significant in employing the
labour on the contract basis and reduce the cost of labour and attain economies of scale.
Corporate social responsibility mainly comprise the maintenance of the stakeholders and
employees (Holden, Michailova and Tietze, 2015). The corporate social responsibility mainly
comprise of the maintenance of the stakeholders and employees. It helps in providing some of
the minimum facilities to the employees of the organisation on the contract ways which helps in
meeting the social responsibility of the organisation. The focuses on fulfilling and complying
with the international standards in order to supply the goods to the organisation and then to the
relevant customers. The company must also effectively comply with the ethical principles which
in turn tends to mainly comprise of the least harm, autonomy, beneficence, justice, deontology,
utilitarianism, virtue and rights. Carrying out activities which benefits the society in turn helps in
improving the outcomes and key results. It helps in improving the brand image and goodwill of
the company.
CONCLUSION
From the conducted study it has been summarized that, Cross cultural management
helps in managing the employees of the organization who comes from the
diverse set of group. Organizational culture is mainly linked with the internal behaviour
and values associated with the organization. Hierarchy structure and the adhocracy culture helps
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in improving the environment of the workplace and attain common goals and objectives. The
leadership is useful in directing and effectively developing a strategy in order to meet the needs
of the company. It is significant in directing the individuals to effectively attain specific action
plan. The situation leadership theory and trait theory of leadership is useful in attaining the goals
and objectives of the company. It has been recommended that, the leaders must effectively
comply with the certain traits and skills associated with the leadership which in turn significantly
helps in improving the outcomes to deal with the specific situation. Ethics and corporate social
responsibility within the organisation helps in bringing wide set of benefits to the business which
helps in attracting customers to boost up sales and profitability. In order to comply with the
ethics and the corporate social responsibility is to significantly comply with the key ethical
standards. The employees and the management of the company must also comply with the
ethical principles that includes harm, autonomy, beneficence, justice, deontology, utilitarianism,
virtue and rights.
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REFERENCES
Books and Journals
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.
French, R., 2015. Cross-cultural management in work organisations. Kogan Page Publishers.
Holden, N., Michailova, S. and Tietze, S. eds., 2015. The Routledge companion to cross-cultural
management. Routledge.
Johnson, J.L. and Cullen, J.B., 2017. Trust in cross‐cultural relationships. The Blackwell
Handbook of Cross‐Cultural Management, pp.335-360.
Luo, Y., 2016. Toward a reverse adaptation view in cross-cultural management. Cross Cultural
& Strategic Management.
Putranto, N.A.R., Gustomo, A. and Ghazali, A., 2015. Analysis of cross cultural management
course pedagogy methods in developing students’ cultural intelligence. Procedia-Social and
Behavioral Sciences, 169, pp.354-362.
Richter, N.F and et.al., 2016. Using cultural archetypes in cross-cultural management
studies. Journal of International Management, 22(1), pp.63-83.
Romani, L and et.al., 2018. Cross-cultural management studies: state of the field in the four
research paradigms. International Studies of Management & Organization, 48(3), pp.247-263.
Thomas, D.C. and Peterson, M.F., 2016. Cross-cultural management: Essential concepts. Sage
Publications.
Online
Cross-cultural Management – Explained. 2019. [ONLINE]. Available through<
https://thriveglobal.com/stories/cross-cultural-management-explained/>
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