Cross Cultural Management

Running head: CROSS CULTURAL MANAGEMENT
CROSS CULTURAL MANAGEMENT
Name of the Student
Name of the University
Authors note

CROSS CULTURAL MANAGEMENT1
Introduction
Hofstede's cultural dimensions theory serves as framework in analyzing the cross-
cultural communication. Implementation of this theory also facilitates in describing the
impacts of a society’s culture on the values related with their behavior. The objective of the
report is to analyze the Hofstede’s model in explaining the cross-cultural theoretical aspects
that persuades the business performance of selected British Company that is HSBC. HSBC
Holdings Plc. is British multinational banking along with financial organization that has
positioned itself as the seventh largest bank in the world.
Answer to question 1
Cross cultural communication has turned out to be strategically vital for the
companies that can support the growth of global business, internet and the technology.
Understanding the cross-cultural environment is vital for any organization that has global
business and has a diverse workforce. HSBC is selected for analyzing its Hofstede’s model
for the reason that it is one of the biggest examples of cultural diversification as it operates
globally and has diverse workforce belonging to different cultures.
In reference to the Hofstede’s model, the business performance of the HSBC
Company improved because in the United Kingdom the power distance is in lower ranking. It
means that the individuals in the society and in an organization is treated equally, the
opportunities are given to everyone. For instance, every employee in HSBC is treated well
and the company maintains a positive culture that helps in creating a good impact on
employees helps in improving the performance of the business in global business
surrounding.
The individualism of the HSBC Company is on high rating helped in improving and
strengthening the culture of the organization because they are independent in taking their

CROSS CULTURAL MANAGEMENT2
decisions. The hiring and promotional decisions are not made based on relationships which
leads in improving the performance of the business they do not believe in collectivisms
(French, Conrad and Shaaban, 2013).
The United Kingdom is a masculine society that is the HSBC company highly success
oriented which helps in improving the culture of the organization. Though it is highly success
oriented the business performance of the company is good and leading to a profitability. They
are having the clear performance ambition their value system continues throughout the
organizational life (Claus, Callahan and Sandlin, 2013).
The uncertainty avoidance in the HSBC company is low they immediately takes
action thus improving the workplace of the organization. The combination of high
individualist and curious nation is a high level of creativity and strong need of innovation.
The organizations is quite happy because to make it up and they go along with changing
plans as new information becomes known.
In accordance with the long-term orientation, the HSBC Company used to maintain
links with its own past by dealing with the challenges of present and future. The company
believes in long-term investment and maintaining the long-term relationship with its
employees because this will benefit them in future and can achieve the future organizational
goals. The pattern of long-term investments helps them to improve the financial performance
of the business.
In case of indulgence HSBC, company believes in humanity and they involve
themselves in lot of social responsibilities they believe in positivism because the economic
strength of the United Kingdom is strong enough. Because of their involvement in social
responsibility, it means that they are having the positive attitude towards optimism. The
indulgence helps them to explore their business more, this helps them in improving the

CROSS CULTURAL MANAGEMENT3
business performance because indulgence stands for the society that allows relatively free
gratification of basic, and natural human drives related to enjoying life and having fun.
However in the context of India the mangers must every workers equally, that is
opportunities so that they can explore their ideas. They must also get involved in the social
responsibilities so that there action do not get restrained by social norms also do not get
involved in unfair means because this badly effects the culture leads to bad performance. The
managers must value the performance of every individuals so that they feel motivated and
show their best performance in the organization that will also help in increasing the
productivity.
Answer to question 2
The comparison of cross-cultural management between United Kingdom and India, in
both the countries the cross-cultural management is different in a wider sense. The power
distance in India is higher than United Kingdom this means that in India the individuals in the
society and organizations not treated equally. It implies that the low-level workers not given
right opportunities, communication is down due to which it is affecting the culture of the
organization and negative feedback given to them. Whereas in United Kingdom the power
distance is low it means society believes that inequalities amongst people needs to minimized
that is they are treated equally. Everyone is getting equal job opportunities and it creates a
good relation with the top level and low-level people and creates a positive culture
(Sriramesh, 2013). There are certain CCM issues that are faced by HSBC in operating in
different nations having high cultural similarities and differences. Fir instance, HSBC goes
issues in operating within Japan due to high cultural differences from its home country.
Collectivism culture is followed in Japan that has controlling value and has negativity
because power is not distributed as per employee level; age and seniority that causes issues
for HSBC in maintain a supportive culture of workplace diversity. Moreover, CCM in certain