Cross Cultural Management | Literature Review

RUNNING HEAD: CROSS CULTURAL MANAGEMENT
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Cross Cultural Management

Cross Cultural Management
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Introduction
Cross cultural management is considered as the management of employees overseas from
a culture other than the domestic culture. Organizations have subsidiaries in different countries
which are managed by headquarters. Further, in the cross cultural management some employees
immigrated from one country to another for work. In order to manage and understand culture of
different countries and to adjust, employees need some time and face many challenges. Cross
culture management can be successful and effective when manager is able to identify the cultural
differences and acknowledge it (Lee, Bacharach, & Lewis, 2014). Managers need to change
some practices and policies and system in order to promote cultural diversity and manage
cultural differences, tis leads to improvement in employee performance and motivation of
expatriates. This assessment is based on the analysis of “expatriate managers cross cultural
motivation and host country national employees attitudes”. In below sections the journal is
analyzed in relation with the concept of cross cultural management and models of culture. At last
conclusion and implication of it in the organization and manager is given.
Literature Review and Hypothesis
Cross cultural management is a challenging task for multinational companies as
managing host country nationals of an overseas subsidiary leads to problematic situation. The
differences in cultural between host country and home country if not managed effectively may
resultant in low commitment by host country national employees and perception of injustice
amongst employees. Oh, Lee, & Oh (2018).said that HCN employees are not ready to accept
changes in the overseas subsidiaries because of low level of organization identification.

Cross Cultural Management
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Organization identification is considered as” the way organizational members perceive oneness
with the organization”. When host national employees have high organization identification, they
perform better in the subsidiary and stay for long time in the organization. Considering this
factor, Epitropaki, (2013) stated that organizational identification is important factor to change
employees attitude and to improve organizational performance. This research is based on the
hypotheses that HCN employees are connected and have high organization identification.
Second, the research focuses on whether coordination approach of expatriates is important for
HCN employees performance and organization identification or not. Oh, Lee, & Oh (2018) said
that coordination is important element for multinational companies as in order to run successful
subsidiaries in the other country expatriate managers need to coordinate. However, the research
focus on the coordination approach for cross cultural management in order to respect the host
country rules and regulation and the role of expatriate managers in building trust between host
country and headquarters. All this would be an important antecedent of HCN employees
organization identification (Barner-Rasmussen, Ehrnrooth, Koveshnikov, & Mäkelä, 2014).
Expatriates managers are considered as the most important way of sharing information
between headquarters and subsidiaries. When expatriates managers have high cross cultural
management this represent a positive sign to headquarters about how headquarters care about
host country national employees. The cross cultural management by expatriate managers
positively influence HCN organization identification and support positively affect headquarters
environment and subsidiaries from where they have been posted. Ahlowalia, Tiwary, & Jha,
(2014). Supported that the role of expatriate is to coordinate the activities between subsidiaries
and headquarters and their behavior positively influences the host country national employees
and productivity.