Cross Cultural Management Construction of a dam in Tanzania
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This report explores the impact of cross-cultural management in the construction of a dam in Tanzania. It analyzes the categories of national culture, organizational structure, and ethics or CSR activities. Relevant theories are applied to understand the challenges and provide recommendations for managing cross-cultural differences.
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Cross Cultural Management - Construction of a dam in Tanzania 1
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 First topic.........................................................................................................................................3 National culture......................................................................................................................3 Second topic.....................................................................................................................................5 Organisational structure..........................................................................................................5 First topic.........................................................................................................................................7 Ethics and CSR.......................................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9 2
INTRODUCTION Cross culture management can be describe as the process of managing people from different culture and background. It is essential for company to manage cross culture in effective manner as it will lead to have direct impact on the performance of employees (Guan, Xie, and Huan, 2018). Due to increase in internationalisation, cross culture in organisation and education hasbeen also increase. In this report impact of difference in culture with in business has been determine. This report will includes case study of construction of dam in Tanzania.It will analyse some categories such as national culture, organisational structure and ethics or CSR activities. In this relevant theories are determine about the topic and issues. MAIN BODY Hydro Generation is an American company and Graham Stenberg is thevice President of this organisation. Hydro Generation company is working to develop amajor dam project in Tanzania. In this project administration responsibilities isheld by Brett Jones who is too eager to work in Tanzanian dam project. Jones gas completed his assignment which is related to preliminary as well as construction phase of the dam project. Brett Jones is very effective in his work andresults of his assignment was highly satisfactory. He is also well aware about the values and philosophy of Hydro Generation founder and CEO.Jones is most suited for the Tanzania dam project as he has experience of neighbourhood countries of Tanzanian. He has completed MBA form University of Boston as well as worked with Peace Corps In Kenya along with the he has also working ins small form and making side trips with Uganda and South Africa. First topic National culture National culture cab be define as thevalues and belief of society that will lead to have impact over the behaviour and attitude of individuals (Kohon, 2018). This will includes norms, customers beliefs which exist in the population of sovereign nation. Culture of a nation is developed by the traditions, customers and history of particular area that is followed by society and its citizens. This will directly influence the decision making as well as potential of a person to carry out task. In order to determine the impact of national culture of the project of 3
construction of dam in Tanzanian hosfstede culture model is considered. This is effective model which will assist in analysing and determining the impact of national culture of both US and Tanzanians. Different dimensions of national culture is mention below - Power distance index- This dimension of national culture is used to express that degree of power that is held by member of society. Less power distribution refer as more power distance in nation and when power is equality distributed among the member of society is consider as low power distance index is society (Fong and et. al.,2018). This is effective dimensions that will help in determining equality or inequality with in the nation. In the national culture of Tanzanian it has been analyse that power distance index is quite high. In the national culture of Tanzanian more power and authority is hold be government and some other people of authority. In this case government has power to take decision and representative are used in order to resolve issues of other people. If any problem arise or issue faced by people than administration need to hire local people which are the relative of government in order to solve the issue. Where as in US power distance in competitively low andmore equality in the nation culture. Citizens of US are following rules and laws that is developed by government. Individualism Vs Collectivism– This includes the degree of individual or grouping consider by societies. Individual refer to the culture is providingmore importance to individual work and this lead to increase the chances of accomplishing personal gaols. In collectivism more importance is provided to group or team task. In case of Tanzanian national culture collectivism is high as support for government and local villagers is consider for performing task or resolving issue. Where as in US individual is responsible to carrying out such task as well as accountable for completion of task. Masculinity Vs Femininity– This dimensions includes the preference of society or nationtoconsidertoughvstender(MannucciandYong,2018).Masculinityincludes characterises which is preferred by organisation such as heroism, assertiveness, material rewards in order to develop. Femininity includes the characterises such as modest and people that are more concerned about the quality of life. In Tanzanian, major roles is performed by males and they are majorly responsible for carrying out superior roles. Where as US culture have more femininity as citizen of this nation are majorly concerned about the quality of life. 4
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Uncertainty avoidance index-This includes that capability and potential of culture to take more risk or extent which is consider that is tolerated for uncertainty. High uncertainty avoidance refer as culture is low risk taking. Low uncertainty avoidance indicates the high risk taking or uncertainty. It has been determine that Tanzanian has lower uncertainty avoidance index as compare to the US nation. Long term orientation Vs Short term orientation– This refer as the dimension that help in determining if nation is short term orientated or long term orientated. Culture which focus more on long term goals delaying in short term success. Short term oriented shows that culture which is more focusing in the culture that is working to attain short goals. In Tanzanian nation culture is more concentrating on the short term goals in order to meet with their needs and requirement. Where as US culture is orientated towards long term goals and they are more focused towards enhancing their life style by accomplish long term objectives. Indulgence Vs restraint– Indulgence refers that society culture which is more focused on free gratification as well as natural drives of human for enjoying life. Where as restraint stands for the culture that is more concentrating on full filling the needs as well as regulation of strict social norms (Kremer, Villamor and Aguinis, 2019). In the case of Tanzanian it is more of restraints as they are more concentrating onfull filling their basic needs. Where as US nation culture is more indulgence for having fun and enjoying life. Recommendations It has been recommended to HG company that it is essential to respect the culture of Tanzanian as it will lead to support in developing strong relationship with the people of host country. This nation has majority of Christians and minority of Muslims and it is important the equal importance to the both the cultural should be provided. Cross culture will be only managed when national cultural is respected equally. Second topic Organisational structure This can be describe as the customs, values, assumption of organisation which is consider by company while carrying out business operations. Organisational culture will lead to have major impact on performance and capabilities of employees. Structure of organisation will lead to create and develop a system for performing business task. It is essential for company to 5
develop effective organisation structure in order to successfully carry out business task.Hydro Generation company has flat organisational structure. Identify issuesexamples from case study related with two issues. Flat organisational structure of HG company was the issues that lead to affect the functioning of business. Due to this organisational structure there were many complain of disorganised. Flat structure includes less level of management an due to this there is no one take charges (Teodoridis, Bikard and Vakili2019). Another issues due to this organisational structured was turnover rates of local employees was increasing highly and it lead to increase the operational problems Utilise theories that links with the topic There are different types of organisational structure theory which is significant for providing guidance toHG company for successfully performing task and attaining goals. Different theories are - Classical organisation theory– Thistheory was developed in 20thcentury and it includes administrative, bureaucratic and scientific management theories. This organisation theory is focusing on increasing performance of employees by providing economic rewards. Bureaucratic theory of organisation involve a proper hierarchy and strict division for work in order increase performance of employees. Neo- classical organisation theory– This type of organisational theory will support in improvement in productivity of employees. Neo classical organisational theory is considering the organisational environment with the values and purpose. It is essential for organisation to create cohesive environment in order to succeed its business. Contingency theory– This is effective theory in order to deal with the issues and conflicts of business. By considering contingency theory respective company will be able to enhance business performance as well as reduce the conflicts of business (Daikoku, 2018). HG company will be able to manage the negative impact on environment changes that is important for success of organisation. Recommendations 6
It is recommended that HG must opt for classical organisation theory as in this case they can lay emphasis on enhancement of performance of their employees. For this, it is necessary that adequate training is being provided to them, the reason behind this is that it will lead to enhancement within their operations as employees will be able to have relevant knowledge in context of responsibilities they are conducting. This enables HG to boost up morale of their employees and retain them for longer time frame. Furthermore, by taking organisation on the whole, it will allow them to have enhanced productivity and ensure that they are able to deliver services on time as per desired standards. First topic Ethics and CSR The acknowledgement of what is wrong or right within the working premises and doing right with respect to impact of services in relationship with their stakeholders is referred to as ethics.Theydenotesmoralguidelinesforconductingbusinessoperationsandformulate decisionsaccordingly(ConstantinescuandKaptein,2020).Corporatesocialresponsibility denotes business philosophy in which emphasis is laid on need of organisations so that they behaves like a good corporate citizens which are merely not dependent on obeying laws but also ensure that they conduct their marketing and production activities in such manner that any kind of agnostic influence is not created on the environment. Basically, it illustrates the role of business within the well being of society. Identify examples from case study related with two issues With reference to HG or the case study the issues or aspects related with Ethics and CSR are specified below: ï‚·In context of corporate social responsibility, Jones opted for identification of local people who can be hired for different jobs as per the requirements. The practice was carried out by them in which the openings were told to locals then they were interviewed, hired and also recommendations were taken from them. ï‚·In context of ethics, the unethical practice which is being carried out by HG was that they opted to hire people by word of mouth but in case if any of the random person who is not 7
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selected or anyone says that they are paying more. This leads to higher probability that people will look forward for having bonuses for each task even in case it is small. Utilise theories that links with the topic The triple bottom line theory suggests that firms needs to emphasise on environmental and social concerns while doing the business. In this case focus is laid on three major aspects, they are: economic, social and environmental sustainability. These aspects with respect to HG are depicted below: Economic sustainability:This values at having long-term financial solidity over short- term profits, volatile and irrespective of how high it is (Ferrell and et. al, 2019). The decision that leads to creation of economic boon within short term and leads to long harm would minimise the bottom line in such a manner that the degree of actions will be untenable. For an example, as Jones opt for hiring recommended people (suggested by locals) then in case if employee is having connections with government officials then they might encourage them to participate within extortion process which is unethically wrong. In case if HG will pay high amount to everyone or employees look forward for having bonuses for each little task then this will have pessimistic influence on economic sustainability of HG. Social sustainability:This gives precedence with respect to balance of economic power within the society. Competition within business arena is common which encourage behaviour but through enhancement of bottom line within the social context needs business for fostering environment where all can succeed (Wagner-Tsukamoto, 2019). Like Jones has opted to hire locals for social sustainability and this will also smoothen their work related with construction. Environmental sustainability:This is based on the fact that resources are finite which leads to reasoning that more degradation will make lives of individuals adverse. To accomplish this aspect, it is necessary to ensure that they make optimised use of resources but this was not done by Jones like the activity for appeasing was conducted twice. This theory must be emphasised on by HG while delivering their functionalities and operations within the market to attain sustainability within the competitive market. Recommendations It is recommended that HG needs to abide to ethics and CSR associated responsibilities to ensure that all the operations are carried out in an appropriate manner. The economy of Tanzania will be enhanced when locals will be provided with employment options. In terms of ethics, HG 8
need to ensure that they abide to all the legal formalities while delivering their services. The turnover rate is high but it is important to acknowledge the reasons why this is happening it might be due to unethical practices thus feedback can be taken from employees. CONCLUSION From above it can be concluded that, cross culture is defined as effort that is being made by organisation for ensuring that people are able to communicate in an affirmative manner with their professionals form distinct backgrounds that is different from the one the belongs to. This leads to creation of both affirmative and pessimistic influence on the employees of organisation like in context of positive the people will learn new aspects to render their responsibilities. The negative influence might be the employees may develop a feeling of superiority which may lead to conflicts and lack of coordination while delivering their responsibilities. Therefore, it is important for firm like HG to ensure that they manage their operations in appropriate manner so that they will be able to meet their objectives in adequate manner. The organisational culture, its structure and ethics & CSR opted by them leads a significant influence on the ways in which firm deliver their functionalities. With respect to this, it is important for firm to identify the theories that will lead them to have affirmative influence and utilise them. But this do not signify that they will enable them to make sure that adequate services are being furnished by them. Furthermore, the strategies must be altered with respect to the market, working and overall goals of the organisation. This will lead them to attain desired productivity and create a healthy working environment through which adequate profitability will be achieved. 9
REFERENCES Books and Journals Guan, X.H., Xie, L. and Huan, T.C., 2018. Customer knowledge sharing, creativity and value co- creation.International Journal of Contemporary Hospitality Management. Kohon,G.,2018.Nolostcertaintiestoberecovered:Sexuality,creativity,knowledge. Routledge. Fong, P.S. and et. al., 2018. Knowledge hiding and team creativity: the contingent role of task interdependence.Management Decision. Mannucci, P.V. and Yong, K., 2018. The differential impact of knowledge depth and knowledge breadth on creativity over individual careers.Academy of Management Journal,61(5), pp.1741- 1763. Kremer,H.,Villamor,I.andAguinis,H.,2019.Innovationleadership:Best-practice recommendations for promoting employee creativity, voice, and knowledge sharing.Business Horizons,62(1), pp.65-74. Teodoridis, F., Bikard, M. and Vakili, K., 2019. Creativity at the knowledge frontier: The impact ofspecializationinfast-andslow-paceddomains.AdministrativeScienceQuarterly,64(4), pp.894-927. Daikoku, T., 2018. Musical creativity and depth of implicit knowledge: spectral and temporal individualities in improvisation.Frontiers in computational neuroscience,12, p.89. Constantinescu, M. and Kaptein, M., 2020. Virtue ethics and CSR: The two sides of sustainable organizational performance. InIntrinsic CSR and Competition(pp. 119-132). Palgrave Macmillan, Cham. Ferrell, O.C. and et. al, 2019. Business ethics, corporate social responsibility, and brand attitudes: An exploratory study.Journal of Business Research,95, pp.491-501. Wagner-Tsukamoto,S.,2019.Insearchofethics:FromCarrolltointegrativeCSR economics.Social Responsibility Journal. 10