Cross-Cultural Management Challenges and Solutions

This assignment explores the challenges of cross-cultural management in China, drawing on academic research to identify key issues such as cultural intelligence, task performance, and job satisfaction. It also examines the impact of cultural archetypes on management practices and the importance of considering cultural differences when doing business in China. The assignment provides a comprehensive overview of the complexities of cross-cultural management and offers insights into effective solutions for managing cultural differences.

CROSS CULTURAL
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Cultural diversity.........................................................................................................................4
Cultural dimensions....................................................................................................................4
Guanxi ........................................................................................................................................6
American organization in china..................................................................................................6
CONCLUSION ...............................................................................................................................7
2. Cross cultural communication as being an under-estimated challenge in international
management................................................................................................................................7
REFERENCE...................................................................................................................................1

INTRODUCTION
In this the cross-cultural communication as being an under-estimated challenge in
international management will be critical evaluated. In the light of international management
theories the cross-cultural challenges are identified and real cases are analyzed. In the nature of
project team work globalization has led to many changes. In a variety of nationalities many
international companies have project and they also involved a great geographical distance and
range of time zones. From different countries with different origins and cultural background the
companies are hiring foreign workers as many companies are doing business globally. In order
to manage the employees of different cultural orientation and nationalities the various unending
challenges are being faced by the companies (Thuita, 2015.).
On the cultural challenges in a Chinese and American management this report will
mainly focus on. In China and USA the different cultures affect cross-cultural management .The
sum of feeling, rules, technique, organization and artifcats that distinguishes human population
can be defined as a culture. Through socialization it is something that is learned and practices
during childhood days. In the traditions it is something deeply integrated. In a cross -cultural
management different cultures are bound together due to globalization. In between workers,
mangers, clients, suppliers and organization from distinct cultures the cross-cultural management
includes effective interaction. The language barriers and lack of understanding of the culture are
key challenges that are linked with cross-cultural management. While working across distinct
cultures the mangers need to be search for and the similarities need to be capitalize by them and
also the cultural differences need to be also be adapted by them. In the countries the

multinational or global company are operating must have a good understanding of culture as it
plays a important role (Stahl and De Luque, 2017).
Cultural diversity
The same traditions and values are being shared by most Chinese inhabitant although it
distinguishes to some extent between rural and urban areas. In China the harmony, benevolence
courtesy, wisdom, honesty, loyalty etc are high appreciated values. The Chinese culture is
formed from these values. In order to actualize the morel integrity and harmony of the universe
one should always attempt to make use of communication. If one make use of communication to
pursue the own self individual self-interest then it is considered negative. In order to understand
the culture the most important key is the language in many cultures. For example in the year
1920 s when the Coco-Cola was first introduced in the China , in Chinese language they attempt
to write its name phonetically. With the pronunciation that is “Keh-Kou-Keh-la” Coca-Coal
ended up and by putting up billboards it started (Silva, Roque and Caetano, 2015.). The name
was changed later when they came to know that “Keh-Kou-Keh-la” in Chinese manes “female
horses with wax”.In order to adapt and emphasize with other cultures only depending on the
English and lacking other abilities of language skills is not a stronger sign for American
managers. The Americans are being percept by the Chinese people as direct, explicitly and too
focused. Being to direct on chine is mainly considered as rude and it is also can be seen as the
lack of education and sophistication (Hauff and Richter, 2015.).
By the traditional values the Chinese culture is strongly influenced and as process of is
eternity they look at time. On the other side Americans see time as a scarce resources and the
efficiency is being valued by them. By an American being late in any business meeting is
considered as rude and impolite .However on the other side the Chinese people value life and by
the time they don't want to be controlled.
Cultural dimensions

is is
It is helpful to look at Greet Hofsetd diagram in order to pay attention on the cultural
differences in between China and the US. This will help to do comparison of the cultural
differences. In a study of IBM employees in more than 60 countries Hofstede developed
dimensions on cross-cultural behaviour. Over its accuracy Hofstede's dimension have been
debated over time bit still it is one of the most important sides in order to know how the values
in the organization are influenced by the culture (Hofstede, 2017).
The power distance is the first dimension which can be defined by this diagrams as
within a countries the less powerful members of the organization expect and accept that power is
not distributed equally. In the society Chine has hight acceptance of inequality which is proved
by the chine high score which is 80.However on other side the low score of US indicated that
more equal and fair society is being favoured in the US. The acceptance of a hierarchically
organization are higher in the Chinese and in a top-down manner the decisions are reached
Illustration 1: China in comparison with United states
(Source:CROSS-CULTURAL CHALLENGES WHEN DOING BUSINESS IN CHINA,
2017)

usually (Karin Andreassi and Rutigliano, 2014.). The individualism is the next dimension which
present the degree to which individuals are supped to look after themselves. One is suppose to
look after themselves and their immediate family only in an individualistic society. In
comparison with Chine in this US have a very high score. This implies that in comparison with
Americans the Chinese people have harder time to trust other people or individual. Before
conducting business in chine the importance of developing relationship is strong. The uncertainty
avoidance is the fourth dimension .In the unknown circumstances or not are feared by the society
(Richter and Gunkel, 2016). The low score of china represent that they are more willing to take
risk. The high score is there of US on the other side which shows that in comparison with
Chinese people the average American is not as much of a risk taker. The planning ahead of time
is being preferred by them. The long-last orientation is the last dimension. It is being indicated
by the high score that for the future the society value the planning and preparation. It is being
indicated by the low score that with suspicion the society looks at societal changes. In
comparison, with US the score of china is very high.
Guanxi
In order to describe relationship that will generate to an exchange of a favour or essential
connection in between people Guanxi is a Chinese word that can be used to describe relationship
(Ramsey and Lorenz, 2016). To the networking it is very much similar .In Chinese business
culture Guanxi carried long traditions and when doing business in china it is very essential to
understand the concept of guanxi. In order to develop trust Guanxi explains the importance of
relationship. Around the trust the business in Chinese revolves .Before considering any
agreement it is essential to establish a connection through guanxi .With the Chinese in order to
develop and maintain relationship a lot of time need to be invested by the foreigners.
American organization in china
In the past few decades some of the American's most powerful companies have not being
successful to enter in the Chinese market. The eBay, Google and home Depot are some among
American failures (Jyoti and Kour, 2015.). The lack of understanding of the cultural
environment and legal understand have being one of the reason behind the failure of these
companies. In order to adapt to the culture in china many American companies have failed. For
an instance in Shanghai the biggest toy company opened in 2009 named as “house of
Barbie”.Due to fail to read the market the owner of the company shut down their flagship. In

china Barbie was never a popular brand and also Chinese costumers were not interested due to
pricey products. In china most families have only one children and the education was more
important for them instead of toys. This was not taken into consideration by Mattel who was
owner of this company. As a waste of time the toys are considered by the Chinese if they do not
have educational objective.
In the cross-cultural management language barriers and differences in intellectual styles
play an essential role. The importance on gunaxi was not acknowledged when eBay tried to
establish in Chine due to which it failed in China (Hauff and Richter, 2015.). By a local rival
that Taobao , eBay was ousted. Taobaco was ware of the culture of china and the pole in china
adapted their business. Before doing business the Chinese people want to develop relationship.
In order to develop interaction before purchasing anything Taobao let the consumers and sellers
to chat over instant messages.
CONCLUSION
Thus from the above report it can be concluded that in Chine the American companies
have failed as the much of the time is not invested by these companies in order to understand the
culture and also the importance of Guanxi was underestimated by them. In some countries the
copying of business model may work but not china .By the traditional values the Chinese culture
is strongly influenced and as process of eternity they look at time. On the other side Americans
see time as a scarce resources and the efficiency is being valued by them. The culture need to be
adapted and in order to survive the importance of relationship need to be learned. The lack of
cultural understanding is also the reason why American companies have failed in China.
2. Cross cultural communication as being an under-estimated challenge in international
management.
Cross cultural management and its importance:
Cross cultural management defines about behaviour of people in the organisation of US
and China. This management helps in reflecting the differences in culture, background and how
they work in US and China, is important to know in order to pursue business. Managing the
employees with cultural differences orientation are taken as important ingredients to achieve the
objectives of business which are set earlier. Many issues can arise in terms of exchange and low
valuing of monetary terms which can arise conflicts this can be managed effectively by

cooperating mutually with a way of resolution (Cross cultural communication as being an under-
estimated challenge in international management. 2016.).
Intercultural communication to employees of different cultural backgrounds:
To meet positive outcomes and diversity in place of work effective way of
communication with the employees plays a prominent role in intercultural communication with
the different background of employees. Various perceptions and assumptions are followed by
different employees as they look for things differently as per their views and thoughts which
others may not agree at a certain point of time (O'Reilly-de Brún and et.al., 2015). This may
create a barrier by arising conflict between the employees. Due to lacking in communication it
becomes intolerable and stereotypes with other culture and creates a hindrance in effective
execution of work. It is necessary to diverse people with their culture to bring out the essence in
communication. The term international communication, defines about communication between
two different countries following different cultures shares equal importance to communication
for effective outcomes.
Thus, communication effectively plays an important role to meet the needs as per set objectives.
Impact of cross communicational styles on managerial decision making:
Cultures are divided into sub cultures in following ways, professional, intellectual, religious and
regional. These four sub cultures carries their own importance at the place of work, with a
chance of creating hindrance a conflict between employees in the place of work. The
management of US and China should contribute their plans without employees origin,
nationality, race, and others. The managers should realise about the importance of cultural part of
different employees as it effects external factors either directly or indirectly operations of
business (de Brún and et.al., 2015). Cultural dimensions which involves power distance,
avoidance of uncertainty, masculinity, and individualism. The leadership styles can be opted to
perform functions of business effectively and efficiently by meeting the desired objectives and
aims of the business. To avoid the uncertainty on the other side, decides on distribution of
powers evenly and that organisations of US and China lacks. The application and adoption of
leadership styles and approaches helps the managers to bring flexibility in decision of
management. The settings of surroundings should be multi cultural to get used to with it and
reduction of conflicts is achieved. In case of high exposures of uncertainty the managers should
focus on resolving despite creating barriers. Accepting of different cultures may create

difficulties at the time of starting as they are new to the culture. It can be described as cultural
shock in this condition employees doesn't feel easy for the adaptations that are made to them in
the work premises. The cultural distance acts as an important role in changing and accepting of
cultures which is achieved to homeland from different nation. The pedigree of various social
systems that shift from minimal to sustainable gap. Management of communication gap is
essential to achieve the objectives of the companies of US and China as they follow difference in
their day to day routine, and different culture and even differences in food which creates barriers
in terms of non adaptation of policies and procedures also by negligence of cultural diversity.
Human resource department role on cultural diversity:
The department of human resource of US and China plays a prominent role in place of work by
managing the cultural diversity. While making decisions, employees of different background and
culture should be taken into concern as in terms of providing holidays regarding their culture and
making decisions. This helps the employees to understand about different cultures and act
accordingly by means of cooperation in place of work which, enhance in the result of US and
China organisations. The role of human resource department also helps in reducing the
challenges of uncertainty and cultural diversity which is the source of problem.
Cross cultural training:
Trainings can be provided to employees, to get know about other employees' culture and
traditions in order of avoiding conflicts. Management with the help of trainings teach the
employees to adapt variations in culture by understanding and accepting smoothly. This training
helps in enhancement of achieving objectives by performing effectively towards it. With the
help of cross techniques in trainings defines about certain level of success in achievement and
establishment of mutual understanding in place of work. Cultural assimilate, and trainings on
different languages, about their field and sensitivity and experiences are shared and trained.
Managing cultural differences:
Managing the differences between various employees at different places helps in recognising the
differences located either nationally or internationally. Identification of cultural differences is
necessary to manage the reasons for problems in US and China organisations. Managers ask the
employees about the importance of acceptance of differences in workplace which encourages
them perform sufficiently to meet the needs of working environment. Avoiding or neglecting
differences in workplace about diversity is irrelevant. To minimise the differences cultural

diversity is considered as k weak approach. The differences are minimised with ideal strategy by
taking into consideration about the differences is merely just a source of problem. Competitive
advantages can be gained by reducing and dealing with the cultural differences. As the World ig
getting globalised, the reduction and non occurrence of cultural diversity and conflicts related to
culture is important, elsewhere, this can prevail a huge barriers and hindrance nationally and
internationally (Xiaohong Guo and Zhong 2015). The managers of multi national organisation
stay focused and perform ion terms of achieving objectives of the enterprise by which they deal
with. The communication between the managers and employees should be effective and clear
indicating towards the differences which may arise conflicts. With the help of regular feedback
from the employees managers can better understand the reasons and causes that are producing
differences. The behaviours that are undesirable within the companies of US and China should
be encouraged towards desirable behaviour. By this way, with the help of feedback and
suggestions by meeting the effective ways the execution of mutual understanding between the
employees and management can be well coordinated and achieved.
Under estimation of barriers and issues faced by global managers:
With global workforce, global managers face many issues and dilemmas in terms of managing
the workforce. When employees cross the borders and territories, changes faced by them by
meeting new cultures, traditions, communicating means, etc., (Bell 2016) to bring out the
efficiency in operations of business they should perform effectively. For the effectiveness in
performance the barriers should be removed and some of them are detailed ion this report.
Parochialism, individualism, ethnocentrism, are the kind of barriers to meet the effectiveness in
performance of business operations. Parochialism defines about the existence of business in their
own nation which they have engaged recently with the same operations internationally.
Comparing to previous organisation existing in domestic have a wider scope with the
internationally located businesses as it have to meet the means of effectiveness in execution with
the help of employees, which demands essential of reduction in barriers of communication. As,
they are very new to the non recognition of resulting in previous and existing culture.
Individualism defines about meeting the needs of employees by satisfying their wants which is
important for self welfare and welfare of organisations. The organisation should be focused to
meet the means of individual rather than collective. Despite of individual, teamwork finds
difficult to attain as the building of team with variations in culture is difficult instead of

individuals. Individuals are focused on self reliable and self gratification. They concentrate on
self as priority before paying attention towards others.
Ethnocentrism:
Accepting idea and cultural facts creates hindrance and barriers which is known as idea of
ethnocentrism. Migrations of employees follow their own culture by applying it on the
workplace environment. As, they find nuances in the cultures and traditions of working
environment, they find their own culture as easy and preferable in day to day life even crossing
the territories (Xiaohui, S and Yun, 2016). Employee should adapt the nuances by enhancing
cross cultural communication. To share the views, thoughts and ideas of business that are to be
being carried employees should couple with China and US international communications should
accept the facts in order to meet the objectives of organisation. These could be reduced by
meeting the means of effective communication gap which avoids conflicts.

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2016 Available through [Online] <https://www.ijsr.net/archive/v5i11/ART20162868.pdf>
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