The Cultural Aspect of the University in Indonesia: A Comparative Study

Running head: CROSS-CULTURAL MANAGEMENT
CROSS-CULTURAL MANAGEMENT
Name of the student:
Name of University:
Author Note:

CROSS-CULTURAL MANAGEMENT
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Executive summary
This report discusses various traits of the cultural aspect which has created problems in an
Australian subsidiary located in Australia. This report aims to compare and contrast between
the culture of Australia and Indonesia an analyses the most important factors to create
cultural gap among the employees of the organization. This report has analyzed the cross
cultural theories and discussed the ideological aspects that have shaped the culture of
Indonesia, and the challenges that the Australian firm face in doing business with these
employees. The report concludes with the recommendation that the managers need to follow
to run the business smoothly without any conflict.

CROSS-CULTURAL MANAGEMENT
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Table of Contents
Introduction................................................................................................................................3
Cultural issues faced by the company........................................................................................3
Recommendations:.....................................................................................................................6
Conclusion:................................................................................................................................7
Reference:..................................................................................................................................9

CROSS-CULTURAL MANAGEMENT
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Introduction
This report aims to discuss the various management styles need to be adopted while
the mangers from one country operate in other region. As a consequence of globalization
these cross cultural organizations of one specific country have started to operate in the market
of other countries. They do this to gain opportunity in the labor cost hence transfer the
manufacturing sector in one place and export them in another region (Coviello, 2015). For
managing such types of business effectively, cross-cultural management theories have
emerged to help these corporations to understand the prospects of the subsidiaries and
maintain effective management there. With the guidance of cross-cultural knowledge, the
managers come to know various dimension of culture which can shape the business culture
(Gelfand et al., 2017).
The issue of cross cultural conflict is inevitable in the Australian organization which
has a subsidiary in Indonesia. This is because the mangers do not agree with the fact the
culture f these two countries are completely different hence become the chief contributing
factor for encounter. The report analyses these issues from the aspect of cultural dimension
theory by Hofstede and concludes with some recommendations to mitigate issues from their
roots.
Cultural issues faced by the company
The company has opened a subsidiary in Indonesia and facing various issues
regarding the dissatisfaction of the employees. The local staffs are not satisfied with the
management as well as the policies of the company. This is due to the fact that the company
has not applied the cross cultural management system in its subsidiary in Indonesia. The
cultural difference of Australia where the company’s head quarter is situated, and its
subsidiary in Indonesia is high enough to create critical situation in the organization. in order