Cross Culture Management

Cross Culture Management
1

Table of Contents
INTRODUCTION ..........................................................................................................................3
Case study scenario..........................................................................................................................3
National Culture..........................................................................................................................3
Communication and Negotiation................................................................................................7
Ethics and CSR...........................................................................................................................7
Recommendations............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...................................................................................................................10
2

INTRODUCTION
Cross culture is one of the key aspect in managing business operations at international
level. It is the process of analysing differences between different cultures across the world. It has
emerged with the help of including various subjects such as psychology, sociology, anthropology
and social science etc. Culture of a country is formed on the basis of religion, customs, traditions
and beliefs they follow. This influences societal cultural norms and traditions which leads to
change in behaviour and attitudes. This report includes case study regarding Tanzanian dam
construction project in which US based company Hydro Generation has extended its business in
Africa.
Case study scenario
Company's vice president is concerned with the cultural issues it has been facing at the
preliminary and construction phase of Tanzanian project. Due to this it has hampered the image
of company and values it has been following. It is concerned with hiring of new project liaison
specialist for operation phase of major dam project. The project specialist has faced
communication and bribery as major problems in conducting project. Following are the theories
used for resolving problems faced by the company.
National Culture
Culture is the combination of shared values, beliefs, customs, behaviour and norms in a
country. It refers to the set of characteristics such as language, religion, ethnicity, norms,
traditions and racial identity. It is formed with years of cultural history and traditions followed in
a country. It leads to connecting people and highly influential in controlling the behaviour of
people in a community or nation. National culture is one of the major aspect for company to
understand differences between country. This help in determining effective ways for cross
cultural communication and solving problems in conducting business (Boussebaa, 2020).
Company is facing various issues in the process of building project such as bribery for
completion of task and obstacles in communicating with individuals. Cross culture management
3

is the study of differences which leads to societal influences on the working of businesses.
International managers has to face various challenges in the operation of business due to varied
differences in the culture of a country. This leads to arrival of various problems in
communicating and understanding the needs in different cultural areas. It may leads to failure of
businesses and major losses if company is unable to understand cultural values. Thus, it is
important to study cultural values and beliefs of a country for conducting successful business.
Hofstede cultural model- This model states that cross cultural issues may arises due to
differences in culture across countries. It helps in understanding inter cultural differences and in
determining ways in which business can be operated. It is a framework which helps in
distinguishing between different national cultures, their dimensions and assessing impact on
business. It is consist of various dimensions which helps in determining ways in which cross
culture can be understood effectively (Guttormsen and Lauring, 2018). This leads to
identification of six categories which defines culture of a country. These are as follows:
 Power distance index- In this dimension of cross cultural model leads to distribution of
power among group of people in a society. It involves unequal distribution of power in
organisation and institutions. Power distance index helps in analysing differences
between two different cultures in different countries. It demonstrates power sharing
between different group of people which leads to clear authority and responsibility
relationship. It leads to development of chains of hierarchy in a society leading with high
index scores to low index scores. In western countries people are more prone with
holding less power distance among people whereas in eastern countries people have high
power distribution system leading to high index scores. This helps in differentiating
countries with different power authority scores. This leads to determination of high
power among people of a specific country (Mahadevan, 2017). In a society with large
power distance establishment of hierarchy is clear and distribution of authority is
accepted among people.
 Individualism versus collectivism- This dimension relates to the degree in which
individuals in a society can connect with others. It helps in determining ways in which
different communities express themselves. Individualist societies have lower tendencies
towards social groups and emphasize self- interest over group or social interest. Whereas,
collectivism societies have strong social bonds and emphasize on group interest over self
4

interest. They are more concern towards social community and group harmony in making
choices. This help in differentiating cultures between countries with individualism and
collectivism attitude. Western countries are more concern with individualist cultures
which leads to understanding of differences in the lifestyle. This culture is more prevailed
in developed nations than developing and underdeveloped nations. Collectivist cultures
can be seen in eastern and less developed countries which is more concerned with social
interest.
 Masculinity versus Femininity- This dimension states that manner in which dominance
values are distributed in a country. Societies are concerned with type of dominance
prevails and leads to determine difference in the dominance of gender. In this gender
dominating societies are differentiated which helps in male typical and female typical
societies. It shows culturally dominant traits in a country with masculine and feminine
traits or characteristics. These include societies with assertiveness and competitiveness
traits preferring masculine culture. In feminine societies they focuses on modesty and
caring nature which helps in preferring female traits by both male and female. In western
countries people have high masculinity values and low in eastern countries. This
dimension help in demonstrating values followed in different countries by the people
(Primecz, Mahadevan and Romani, 2016).
 Uncertainty avoidance index- This dimension relates to the manner in which people are
comfortable with tolerating uncertainty and ambiguity in a country. Countries with strong
uncertainty avoidance index have strict behavioural codes, rules and laws. Whereas
countries with low uncertainty avoidance index have less regulations and rules leading to
acceptance of different opinions. This helps in differentiating countries with different
cultures and norms resulting in different behaviour and attitudes.
 Long term orientation versus short term orientation- Long term and short term
orientation helps in finding and analysing attitudes of people within a country. This
dimensions reflects degree of perspective in a country with long time and short time
orientation in taking decisions. In this societies are differentiated on the basis of time
orientation which helps in finding long term and short term perspective (Romani,
Mahadevan and Primecz, 2018). This leads to understanding of societies perspective for
long term leads to pragmatic, modest and more unpredictable behaviour. Countries with
5

short term orientation people put more emphasis on principles, values, consistency and
truth reflecting religious and nationalistic attitude. Developed countries and western
culture follows short term orientation this is reflected in their short term gains and quick
results. Also, it can be seen in their strong sense of nationalistic and social standard
perspective.
 Indulgence versus Restraint- In this dimension it relates to the manner in which society
consider the extent and tendency at which they fulfil their desires and wants. It is consist
of how societies are concerned with controlling their impulses and desires in a country. In
this indulgence shows that society is allowed for relatively free satisfaction relating to
enjoying life and including fun activities. Whereas restraint shows that a society controls
or suppresses their needs for gratification and regulates itself with social norms and
conditions. Western countries shows high indulgence score leading to high value for
instant gratification in life. They are more drive towards enjoying life and fun attitude
(Romani, Mahadevan and Primecz, 2018). Whereas societies with low indulgence rate
tends to suppress emotions and gratification needs with conducting strict and regulated
behaviour. These societies have stricter rules and regulation with suppression of emotions
and behaviour leading to stricter societal norms.
Thus, this model helps in differentiating behaviour of people in terms of various
dimensions provide by the hofstede. It leads to determine inter cultural differences between
countries. Therefore, it leads to changing of behaviour due to different cultures and values
between countries. The project requires determination of cultural differences which helps in
leading change in interacting with people of Tanzanian. This leads to overcoming of
communication barriers between people of country. It helps in eliminating differences with
understanding of needs and behaviours of people. It can be achieve with applying appropriate
models and theories which leads to understanding of cultural values and beliefs of a country.
This help project manager in preventing leading issues of bribery for the completion of various
task and leads to ethical behaviour. This model analysis differences in cultural behaviour which
has direct influence on the behaviour of people (Thomas and Peterson, 2016). Furthermore, it is
consist of various cultural issues present in different countries leading to generation of various
problems. This has direct and indirect effect on the nature of decisions and alternatives they
undertake.
6

Communication and Negotiation
Communication is one of the major factor for dealing with workers in the operation of
Tanzanian project. Completion of project requires effective communication for influencing and
directing work in the company. Negotiation is important for conducting business activities within
cross cultural borders. It requires formation of effective business agreements with set terms and
conditions. This leads to inclusion of negotiation terms with effective communication to gain
mutual consent between parties. Thus, communication and negotiation skills are essential for
building plans and agreements between two or more parties. In Tanzanian project it is necessary
to build effective relationship between concern parties resulting in completion of project with
required resources. It is core skills and capabilities require in the completion of business project
between different cultural parties. For overcoming cultural issues between countries and
following mutual terms and conditions results in effective decisions and completion of various
task (Tjosvold, 2017). Company's project manager faces various problems in the completion of
project such as requirement of bribery and communication barriers. This leads to major problems
towards company's image due to fluctuations in the values and implementation of immoral acts.
This has major effect on company's image due to involvement of bribery and other fluctuating
practices which deviates from company's core values and beliefs. Negotiation of activities leads
to win win situation for both parties with mutual consent. These are the agreed terms and
conditions of negotiable agreements which helps in consulting various plan of actions. This leads
to fulfilment of agreements and encourages participation which helps in overcoming barriers of
communication and legal agreements between parties.
Ethics and CSR
Ethics are the core values which helps in differentiating right and wrong behaviour of
people. These are the values which helps in directing behaviour of people. In this set of
principles are followed which helps in leading what people should do in terms of obligations,
benefits to society, unbiased and virtuous behaviour. These are the acceptable standards in a
society which is consist of doing what is right to do. Ethics are the study of people right
behaviour developed from social norms and laws. It is developed from one's ethical standards
framed from adequate reasons and consistent approach (Boussebaa, 2020). These are enjoins
virtues of honesty, integrity, compassion and loyalty leading to moral beliefs and moral conduct.
It helps in concerning what is good for society and making fundamental rights for human being.
7

CSR activities are those which helps in improving company's social and environmental
impact. These are the efforts consist of positive impact on company's social life and
responsibility towards society. This leads to improvement and enhancement of societies living
standards in a country. Corporate social responsibility is consist of planning, and organising
programs which helps in formulating social welfare activities. These are socially active programs
which help company in gaining recognition and trust of society. In this they give back to society
from which they have gained profits (Guttormsen and Lauring, 2018). It helps in formulating
goals and objectives towards society leading to social benefits and welfare.
Company follows strong ethics in the implementation of legal and moral activities in the
completion of project. It has been undertaking various practices for maintaining standards of
company aligned with US strong culture values and beliefs. This results in strong reputation of
company within different countries. It also indulges in corporate social responsibility activities
which helps in socially active among people leading to high turnover and performance. These
activities help company in gaining support and trust from people leading to strong image
globally. Thus, company follows strong ethics and increase share in social activities leads to
better performance and profitability. It has contributed good amount in improving and
developing society living standards. In completion of project it has promised building of schools
and hospitals for local people (Mahadevan, 2017). This will help in gaining support from local
people and influencing their behaviour in terms of mutual consent. This leads to overcome of
various issues in considering cultural differences. It helps in achieving success in the completion
of project due to incorporating ethical behaviour and best practices beneficial to both parties.
Recommendations
It is recommended that company should encourage employment of Mr. Jones in
completion of project due to various reasons such as:
 He has good command and relationship with the African culture and respect for their
traditions and values. He is very much familiar with the rituals of Tanzanian and has
good understanding of needs and wants of people. He is excellent in completion of
preliminary activities of the project. This results in effectiveness of completion of rest of
task and shows competency in achievement of people support.
8

 He is capable of gaining local people trust and support in the completion of project. Local
people are not supportive of formation of dam in against of river. Two local tribes were
not ready in shifting their places leading to inconsistency in formation of dam. He
convinced people in gaining their support and leads to positive behaviour of local
authorities and villagers.
 He can be a great help in settling of foreign engineers with their families leading to
comfortable environment. He has familiarity with the host country which helps them in
securing healthy relations with local people and gaining support.
 He is well aware of various problems and time consumed in accumulating basic
amenities such as obtaining licences and certification, installing of telephones and
utilities, and finding local people to hire for the wide range of jobs require in the project.
Thus, He has good liaison skills which helps in completion of task effectively and
gaining support from local people for construction of dam. For avoiding spread of information
which can hamper image of company. It is recommended to practise ethical decisions in reaching
goals and objectives of the project (Primecz, Mahadevan and Romani, 2016). Also, due to
familiar approach with people's cultural values and traditions leads to overcoming of unethical
behaviour in conducting business and agreements with local people.
CONCLUSION
From the above report it can be concluded that cross culture management is essential for
conducting business at international level. Company has been incorporating various models and
theories for understanding cultural differences and deviations in completion of effective project.
Thus, cross cultural management is the process of analysing various differences and
implementation of appropriate measures to overcoming various problems. This can be resulted in
completion of business operations in culturally different countries.
9

REFERENCES
Books and Journals
Boussebaa, M., 2020. From cultural differences to cultural globalization: towards a new research
agenda in cross-cultural management studies. critical perspectives on international
business.
Guttormsen, D.S. and Lauring, J., 2018. Fringe Voices in Cross-Cultural Management Research:
Silenced and Neglected?.
Mahadevan, J., 2017. A very short, fairly interesting and reasonably cheap book about cross-
cultural management. Sage.
Primecz, H., Mahadevan, J. and Romani, L., 2016. Why is cross-cultural management
scholarship blind to power relations? Investigating ethnicity, language, gender and
religion in power-laden contexts.
Romani, L., Mahadevan, J. and Primecz, H., 2018. Critical cross-cultural management: Outline
and emerging contributions. International Studies of Management & Organization.
48(4). pp.403-418.
Thomas, D.C. and Peterson, M.F., 2016. Cross-cultural management: Essential concepts. Sage
Publications.
Tjosvold, D., 2017. Cross-cultural management: foundations and future. Routledge.
10