Cross Cultural Management

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This report explores the concept of cross-cultural management and its impact on organizations. It discusses the importance of understanding different cultures in managing a diverse workforce. The report also covers topics such as national culture, leadership, motivation, and HRM in a cross-cultural context. It includes a case study on Brett Jones in Tanzania and analyzes the concepts of leadership, ethics, CSR, and organizational culture. Find study material and assignments on cross-cultural management at Desklib.
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Cross Cultural
Management
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Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
National Culture......................................................................................................................................3
Leadership...............................................................................................................................................5
Motivation and HRM...............................................................................................................................6
CONCLUSION ..............................................................................................................................................8
REFERENCES..............................................................................................................................................10
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INTRODUCTION
Cross-cultural management can be defined as the study of management in a cross-cultural
context. It basically includes the study about influence of the culture of a society on managers as
well as different management practices. It is an important aspect for an organization because it
helps it in dealing with people who come from distinct cultural backgrounds (Andresen and
Bergdolt, 2017). Companies aim to serve customers in different geographic locations in the
world. For this, it important for them to have an understanding of the needs of customers as well
as the different cultures. Also, if the managers within an organization will not have knowledge
about the different cultures, they will not be able to manage the diverse workforce in their teams.
Cross-cultural management helps an organization to understand the employees who join an
organization and belong to different cultures. Respective report is based on the case study about
Brett Jones in Tanzania. The report is based on the concepts of Leadership, Ethics and CSR as
well as Organizational Culture.
MAIN BODY
National Culture
National Culture can be defined as the set of norms, beliefs and behaviors, values as well
as customs that are shared by people within a nation. It can include basic characteristics like
language, religion, ethnicity and traditions. National culture is an important component for an
organization because it can significantly contribute to its overall performance and profitability.
The Hofstede model is used to compare different national societies. The model is composed of
six dimensions which are independent from each other. The different dimensions are power
distance, uncertainty avoidance, individualism vs collectivism, masculinity vs femininity, long
term versus short term orientation and lastly, indulgence vs restraint (Bartel-Radicand
Giannelloni, 2017). All of these dimensions of national culture represent the preferences that are
independent and differentiate one country from another. In context to the respective case study,
Brett Jones believed that one should not draw attention to themselves and should learn to respect
all different cultures.
One of the problems that HG came across was that it lacked perspective about the home
corporate as well as a knowledge about the economics, politics and culture of the host country
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(Tjosvold, 2017). The first dimension of the Hofstede model, power distance index, expresses
the degree to which the members of a society accept that power is distributed in an unequal
manner. These members possess relatively less power. It is mainly about how a particular society
handles inequalities among the people living in it. People living in societies which show a high
degree of this particular dimension, are part of a hierarchical order. The next dimension is
individualism versus collectivism. Individualism can be defined as a preference for a social
framework that is loosely-knit. In this, individuals within the organizations are expected to take
care of their families. Due to this, Brett Jones was not able to provide help to his colleagues so
that they could adapt themselves to the new environment.
In context to the power distance index of the respective model, a high index means that
people within the nation believe in hierarchy. On the other hand, collectivism is about the
preference for a framework that explains that the society stands collectively. The next dimension
is masculinity versus femininity wherein masculinity represents the preference of society for
achievement, heroism as well as material rewards for success (NATIONAL CULTURE, 2020).
Overall, the society is considered to be competitive which represents that the Tanzanian market
is a competitive market. On the other hand, femininity is a dimension that stands for the overall
preference of caring for the weak in the society, modesty, cooperation as well as quality of life.
The dimension of masculinity versus femininity is also referred to as tough versus tender within
a business context(Chen and Huang, 2017). The next dimension of the respective model is the
uncertainty avoidance index or UAI. It describes the degree up to which people are
uncomfortable with uncertainty as well as ambiguity. The countries that exhibit a strong
uncertainty avoidance index have rigid codes of belief.
Long-term versus short-term orientation dimension of the model states that each society
within a country is supposed to maintain some links with its past while it deals with the
challenges of the future as well as the present. The societies that score low for this particular
dimension usually prefer old traditions. On the other hand, a high score in this dimension means
that the society encourages modern efforts. The last dimension in this model is indulgence versus
restraint wherein the former represents a society that allows a free gratification of natural human
drives which includes enjoying and having fun(Cho and Kim, 2017). On the other hand, restraint
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represents a society that does not support any kind of gratification and instead has social norms
that are strict. Therefore, these are all the dimensions of the Hofstede model.
Leadership
Leadership is an important component for a company that significantly contributes
towards the overall success of an organization. It is all about motivating employees, team
members or subordinates and encouraging them about achieving goals and objectives effectively.
Leadership within a business can be referred to as directing the workers so as to enhance the
overall levels of their performance and productivity. An effective leader is expected to possess
various skills like time management, setting up strategies, guiding the team members, evaluating
individual performances of the team members and providing constructive feedback etc.
Leadership is important because it helps the people working in an organization to maximize their
overall efficiency so as to achieve organizational goals(Farndale and Sanders, 2017). Leadership
is a continuous process, wherein the leader is supposed to guide the team members so that the
efforts they put in are utilized effectively. In context to the case study, Steinberg, the Vice
President of Hydro Generation is implementing the laissez-faire style of leadership. In this style
of leadership, the leaders allow the group members to make decisions on their own, which is the
similar to the given case study. Brett Jones is allowed to make his decisions and the subordinates
are required to take full responsibility of their respective decisions and that they will be held
accountable for the outcome.
Steinberg has set up a flat organizational structure but some of the local employees
complained that it was not organized properly and it seemed that no one was in charge. The
respective company was not very good at dealing with the local people and due to this, the
turnover rate of local employees was high. This further led to no one in the organization being
able to explain the problem. There are various leadership theories that can help in understanding
the behaviors certain people and why do they become leaders. As per the trait theory of
leadership, there are certain natural qualities that create good leaders. It states that if a person has
certain qualities, it does not mean that they have strong leadership skills(Miao, Humphrey and
Qian, 2018). In context to the case study, Graham Steinberg considered Brett Jones to be a part
of the Tanzanian Project. This was because Jones had already completed projects on preliminary
as well as construction phases of the project and the results were highly satisfactory.
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For the respective company, Hydro Generation, it is important to have to have an
effective leader who can handle the problems. Another theory of leadership basically focuses on
the how the environment surrounding a person helps them in becoming a leader. Conditioning is
one of the important concepts of this theory and states that an individual is more likely to act in a
particular style which is a result of environmental responses. This is one of the important theories
of leadership. Different theories of leadership are meant for different work environments and
help in achieving business objectives in the most effective manner. Leadership also contributes
to the company’s overall profitability as well as profitability in the market. In context to the
given case study, the Vice President of the company, as a leader believed that Brett Jones was a
little too eager to accommodate himself to Tanzanian ways in which business was done. Also,
due to the flat structure of the company the people in the region thought that it was disorganized.
It can be seen from the case study that people in Tanzania requires direction because
there was no one in charge. An effective leader has the ability to persuade others to draw out the
best in them. He helps other people to understand the significance of their work, consequently
getting them to accomplish the objectives that have been set for them (Mladenović and et. al.,
2017). He understands the individual inclinations and working examples of his sub-ordinates and
colleagues and spurs them in like manner. A pioneer is one who takes choices and plans
methodologies immediately and actualizes them inside a short notification. He, not just, works
out the answer for an issue, however urges others to assist him with accomplishing the objective.
He sees the master plan, chalk out an arrangement and move towards it. A leader is known for
his brilliant relational abilities and knows about the individual characters and can pass on his
messages unhesitatingly and adequately to the two administrators and sub-ordinates. As he
recollects interests, abilities, encounters and subject matters of others, it gets simpler for him to
speak with them, fortify the working relationship and urge them to be progressively committed.
Motivation and HRM
Motivation can be defined as the willingness of the employees within a company to put in
high levels of efforts in order to achieve organizational goals and objectives. It is an important
aspect within an organization because it encourages employees within the company to work in an
effective manner that the overall productivity as well as performance of the company can be
improved. Employees who are motivated and committed to their jobs, put in efforts to make sure
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that tasks which are assigned to them are completed in an effective manner (Mooreand Jennings,
2017). This results in an increase in the performance and the company is able to gain a
competitive advantage against others. In context to the given case study, Brett Jones was
motivated to stay in Tanzania and the respective company HG would find it hard to find
someone like him to be a part of the project. This was because he was professionally trained and
also had a familiarity with the host country.
There are many theories of motivation that can be applied to the case study in order to
gain a better understanding of the same. Motivation assumes a significant job in changing the
mentalities of the representatives in the association. Aloof disposition is smothered most
productively by inspiration. The nearness of such great mentality permits the association to
flourish and be effective. A very much persuaded workforce is a dependable workforce (What
Is Motivation And How It Works, 2020). Roused representatives have elevated levels of spirit and
duty towards the association and its objectives and goals. Inspiration in this way lessens
representative turnover and decreases the requirement for steady acceptance of new workers.
Motivation facilitates direction to the employees within a company which is given in the case
study. Also, the employees learn to work in cooperation with each other. The different theories
of motivation help in getting an insight of the different ways that motivate an employee and help
them in performing better.
There are many theories of motivation like McClelland’s theory of needs which states
that there are three motivational factors and that they do not depend on gender or age. These
drivers are affiliation, power and achievement. In this, achievement can be defined as the need of
an individual to accomplish something (Presbiteroand Toledano, 2018). Individuals who have a
high need for achievement, prefer taking responsibility of tasks wherein the results are based on
their individual efforts. On the other hand, affiliation is the need for belonging and people who
have a high need for affiliation, are stimulated by being acknowledged by others. Such people
take part in get togethers. People with a significant need for power, prefer circumstances in
which they get an opportunity to lead and impact others. They yearn for positions with status and
authority and will in general be more worried about their degree of impact than about successful
work execution.
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HRM theories can be applied in order to gain a better understanding about the given case
study. As per the resource-based theory of human resource management, all resources that are
available with an organization are valuable and rare (Romani and et. al., 2018). Also, they are
difficult to imitate and also contribute to the overall success of the organization. In context to the
given case study, the vice president believed the resources available to be valuable and that they
should be utilized in the most effective manner.
In addition to this while conducting a business operations and functions in effective
manner human resource management plays a major role because through it they able to
accomplish task in proper way. Moreover there are several other benefits which is attain by a
company through effective human resource management such as motivate employees through
which they feel encouraged that leads to quality in production. In addition to this HRM practices
also help a company in developing strategies as well as plans according to the situation which a
company is currently facing. HRM also help a company in developing proper rules, regulations
and practices which help them in conducting work in effective manner for attaining desire goal
as well as objective successfully.
Therefore, from the report it is recommended that autocratic style of leadership should be
implemented if the project has to be successful. This way the leader will be able to monitor the
performances of the subordinates and also provide them guidance if there is a need. Not only
this, it is also recommended to carry out the recruitment process in the most effective manner
because it will help the company in hiring people who are best suited and qualified for the jobs
available(Shockley and et. al., 2017). Also, the managers should motivate their subordinates in
order to ensure that appropriate and desired output is achieved.
CONCLUSION
By analyzing above mentioned points it can be summarized or conclude that for a
company it is essential to adopt cross culture at their workplace because through it they able to
attract as well as retain their customers successfully. Through cross culture an organization able
to attain several benefits such as employees feel motivated, development of positive working
environment, enhance in work quality and many more. Before expanding a business a company
needs to determine culture of particular location so that they will develop strategies as well as
plans accordingly. In addition to this it will also help a company in adopting new technology as
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well as ideas according to the culture of nation. Moreover while this they also need to consider
several aspects such as leadership, ethics, corporate social responsibilities, organization culture
and many more.
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REFERENCES
Books & Journals
Andresen, M. and Bergdolt, F., 2017. A systematic literature review on the definitions of global
mindset and cultural intelligence–merging two different research streams. The
International Journal of Human Resource Management. 28(1). pp.170-195.
Bartel-Radic, A. and Giannelloni, J.L., 2017. A renewed perspective on the measurement of
cross-cultural competence: An approach through personality traits and cross-cultural
knowledge. European Management Journal. 35(5). pp.632-644.
Chen, G. and Huang, S.S., 2017. Toward a theory of backpacker personal development: Cross-
cultural validation of the BPD scale. Tourism Management. 59. pp.630-639.
Cho, M. and Kim, G., 2017. A cross-cultural comparative analysis of crowdfunding projects in
the United States and South Korea. Computers in Human Behavior 72. pp.312-320.
Farndale, E. and Sanders, K., 2017. Conceptualizing HRM system strength through a cross-
cultural lens. The International Journal of Human Resource Management. 28(1). pp.132-
148.
Miao, C., Humphrey, R.H. and Qian, S., 2018. A cross-cultural meta-analysis of how leader
emotional intelligence influences subordinate task performance and organizational
citizenship behavior. Journal of World Business. 53(4). pp.463-474.
Mladenović, S.S. and et. al., 2017. Cross-cultural dimensions influence on business
internationalization by soft computing technique. Computers in Human Behavior. 75.
pp.865-869.
Moore, L.F. and Jennings, P.D. eds., 2017. Human resource management on the Pacific Rim:
Institutions, practices, and attitudes (Vol. 60). Walter de Gruyter GmbH & Co KG.
Presbitero, A. and Toledano, L.S., 2018. Global team members’ performance and the roles of
cross-cultural training, cultural intelligence, and contact intensity: the case of global
teams in IT offshoring sector. The International Journal of Human Resource
Management. 29(14). pp.2188-2208.
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.
Shockley, K.M. and et. al., 2017. Cross-cultural work and family research: A review of the
literature. Journal of Vocational Behavior. 101. pp.1-20.
Tjosvold, D., 2017. Cross-cultural management: foundations and future. Routledge.
Online
NATIONAL CULTURE. 2020. [Online]. Available
through:<https://hi.hofstede-insights.com/national-culture>.
WhatIs Motivation And How It Works. 2020. [Online]. Available
through:<https://www.managementstudyhq.com/importance-of-motivation-in-an-
organisation.html>.
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