Intercultural Management in Business

This report explores the impact of individualism and collectivism on work and discusses intercultural management in business. It highlights different theories, such as Hofstede theory, and strategies, such as global and transnational, to gain a competitive edge in the industry.

Intercultural Management in Business
Different views on how Individualism and
Collectivism impact the way we work
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EXECUTIVE SUMMARY
Intercultural management states the combination of knowledge that are essential to deal with
different factors of culture at international level. Culture dimension plays an important role in the
organisation which is related with the concepts and goals that are relevant and leads the firms to
approach large number of customers at global level. Culture theory is beneficial in the
organisation in order to improve communication channel between all departments of a firm. On
the other side global strategy leads a business to provide similar quality products and services at
multi-national level. The main aim of this report is to identify the culture differences in the
context of internalisation business. It is mandatory for an organisation to formulate effective
strategy that leads organisation to gain competitive edge in the industry. Further with the
implementation of appropriate theories and strategy in the organisation it is easy for management
to achieve long term benefits by expanding the size of business at global level.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................5
Views on individualism and collectivism that impact on the work done.........................6
FINDINGS AND ANALYSIS..............................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Intercultural management exists as the synthesis of management and leadership style,
culture, beliefs and values by which an organisation performs their work. In simple terms it is
understood by understanding the ways which is performed by management and its employee's
complete their function at operational and functional level. Most of the existing organisation are
performing their work at global level by implementing the effective intercultural management
(Rockstuhl and et. al., 2015). This report is based from the perspective of Unilever's as there are
large number of individuals are engaged to achieve organisational objectives. The present
assignments highlight on understanding about the cultural dimension by using different theories.
Along with this it also highlights on strategies that are related with the international business
activities.
Source: Collectivist and Individualist Societies. 2019

Views on individualism and collectivism that impact on the work done
According to the Craig Biddle (2012), Individualism refers to the idea that is related with
individual's lifelong learning and it is related with the inalienable right. The major concern about
the individualism factor relates with various learnings by which they identify factors relates with
judgement factors and the use of product or service is end with in the hand of individual itself.
(Oetzel, 2017) The factor of individuals is developed in the world when the constitution is
drafted. With the help of this rules and regulations a country is developed in which individuals
are free to live their life as per their wish. Such as to buy land, start their own business and many
more. Aspects of individualism helps the persons to live their life happily.
Collectivism works as one of the culture pattern that is found in most of the traditional
societies specifically in UK, Asia and other countries. It contrasts various factors such as
individualism, that works as culture pattern for the organisation in an effective way (Zapata-
Barrero, 2017). This determines that the dimensions of collectivism work as one of most
psychological aspects that is related with the personal and social value of an individual and team.
In the last, it works as a psychological factor that is useful in examining the geographic and
demographic distribution for the firm (Leung, Ang and Tan, 2014). The primary concerns of the
implementing collectivism factor in the society is to develop the preservation, welfare and
happiness as the prime concern that is beneficial to deal and get benefits related to the groups
and society.
FINDINGS AND ANALYSIS
Theories related with the individualism and collectivism
Hofstede theory is one of the most appropriate frameworks that is used to understand the
differences of culture among national boundaries. In simple words it is used as a framework
which is used to distinguish differences among national culture and its impact on business
setting. The main motive of Hofstede theory is to identify various dimensions that is related with
culture background of organisation (Guidikova, 2015).
Individualism theory exists for the moral stance, political philosophy and ideology outlook that
emphasis moral worth of an individual. It makes the individual to focus and start the needs of
organisation which are related with human individual because it is the primary importance to
struggle for achievement of goals (Yemini and Fulop, 2015).

Collectivism refers to the value which is characterized by emphasis and cohesiveness of
individuals and prioritization of the group on self-basis. All the members in the collectivism
refers to the value and goals related with the particular group and goals (Butter, Valenzuela and
Quintana, 2015). Moreover, with the group efforts it is easy for organisation to enhance the
overall performance of organisation.
In the present scenario, there are various goals are achieved by the organisation by
developing positive relationship in the society. Therefore, social cognitive theory is developed in
the society which is beneficial in engaging factors that are concerned about the welfare of
people. The concept of social cognitive theory is first developed by Henri Tajfel in the year
1970. Along with this there are various goals are also need to be manage which is related with
the curiosity among the social process (Arasaratnam, 2015). This results it is easy for the
management to understand rational and irrational behaviour of employee's or persons who are
engaged to achieve organisational goal. After this various minimal group experiments are also
concern the nature of individuals. It is useful for describing the in-group favouritism and out
group discrimination.
As per the view of Anthony J. Evans (2007), After the individual is able to categorise
themselves into the factors of individualism and collectivism, it is easy for management to make
effective results which increases the performance of society by concerning the internalization of
group membership and their implications through identifying them on social basis. Moreover, for
the review of Unilever this theory is more beneficial because it helps to generates cognitive
awareness in the society (Guidikova, 2015). On the other side, it also leads the individuals to
recognise and to categorise the emotional stability of individuals.
According to the Hoffer (2011), Corporate culture theory is another concept which is
related with the goals and corporations for an appropriate boundary. This application is used by
the organisation to make these factors related to the goals of an organisation. In the present
scenario, most of the business houses are performing their work at global level. So, it is
mandatory for the management of Unilever's and other organisation to decided their rules and
regulations according to the international standard of society. Moreover, corporation also
develops benefits through dividing their work by assigning the work to the right person. This
determines it is easy for management to focus on culture and shaped their works and objectives
as per the view of society (Butter, Valenzuela and Quintana, 2015).

Strategies are one of the best tools that can lead an organisation to gain competitive
advantage against their rivals. In most of the cases an individuals or organisation generates long
term profits after implementing effective strategies in their work methods. Therefore, it is
mandatory for the organisation to implement essential action and activities that is beneficial for
providing different benefits to society (Tili and Barker, 2015). Along with these strategies also
leads the individuals to earn long term benefits by considering their factor on individual and
social environment basis.
Figure 1BRIDGING CULTURAL GAPS IN PROJECT MANAGEMENT.
Source: Bridging Cultural Gaps In Project Management. 2017
According to the Bartlett and Ghoshal (2017), There are various strategies are used by the
organisation to make effective results in the work. Global strategy is one of the specific units
which is used by international organisation. As this organisation are highly integrated so the
main motive to implement this strategy is to provide similar quality products. This action results
it is easy for organisation to generate the trust among people about their products. Culture
distance plays an important role in the organisation as it increases the interaction among
employee's because they are curious about the other culture to know as it increases their
knowledge and interaction.

According to the Davis (2009), culture and communication are inseparable from each
other. An organisation which is working at international level recruit employees from various
culture for improving the productivity of their work. So, culture shock is one of the methods
which is used by the organisation to enhance the motivation among employees to learn about
new things. Employees are crucial part for the organisation and they perform a major role in
achieving the company’s goals and objectives. Further to support the culture and communication
transnational theory can work as a most important strategy because it concerns all the points
related with organisation (Arasaratnam, 2015). This activity results it is easy for organisation to
formulate accurate results by performing their work with more efficiency and effectiveness.
Moreover, the transnational theory undertakes global and multi-domestic firm. Its aim to
maximize their goals to increase their profits from global integration (Tam, Sharma and Kim,
2014). Even though there are various factors is difficult to undertake because they are based on
the economic patterns of a country. Therefore, with transnational strategy functions are
integrated and interdependent by concerning essential subsidiaries at the global level.

CONCLUSION
Most of the current business are expanding their business at global level due to this it is easy
for them to approach large number of customers at global level. So, in the end by analysing all
the above points it is concluded that individualism and collectivism are two different factors
which are related with the goals that are achieved by the organisation for completing their work
at global level. Theories plays an important role in the organisation due to which a management
is able to deal with all aspects at international level. In the last, strategy such as global and
transnational leads the organisation to perform their work by concerning all the factors of
organisation at local and global level.

REFERENCES
Book and Journal
Arasaratnam, L.A., 2015. Research in intercultural communication: reviewing the past
decade. Journal of International and Intercultural Communication, 8(4), pp.290-310.
Butter, M.C., Valenzuela, E.S. and Quintana, M.G.B., 2015. Intercultural Talent Management
Model: Virtual communities to promote collaborative learning in indigenous contexts.
Teachers’ and students’ perceptions. Computers in Human Behavior, 51, pp.1191-1197.
Guidikova, I., 2015. Intercultural integration: A new paradigm for managing diversity as an
advantage. Interculturalism in cities: Concept, policy and implementation, pp.136-151.
Leung, K., Ang, S. and Tan, M.L., 2014. Intercultural competence. Annu. Rev. Organ. Psychol.
Organ. Behav., 1(1), pp.489-519.
Oetzel, J.G., 2017. Effective intercultural workgroup communication theory. The International
Encyclopedia of Intercultural Communication, pp.1-5.
Rockstuhl, T and et. al., 2015. Putting judging situations into situational judgment tests:
Evidence from intercultural multimedia SJTs. Journal of Applied Psychology, 100(2),
p.464.
Tam, J., Sharma, P. and Kim, N., 2014. Examining the role of attribution and intercultural
competence in intercultural service encounters. Journal of services marketing, 28(2),
pp.159-170.
Tili, T.R. and Barker, G.G., 2015. Communication in intercultural marriages: Managing cultural
differences and conflicts. Southern Communication Journal, 80(3), pp.189-210.
Yemini, M. and Fulop, A., 2015. The international, global and intercultural dimensions in
schools: An analysis of four internationalised Israeli schools. Globalisation, Societies
and Education, 13(4), pp.528-552.
Zapata-Barrero, R., 2017. Intercultural policy and multi-level governance in Barcelona:
mainstreaming comprehensive approach. International Review of Administrative
Sciences, 83(2), pp.247-266.
Online
International business strategy, 2017 online <https://www.business-to-you.com/international-
business-strategy/>
Collectivist and Individualist Societies. 2019. [Online] Available through
<https://sites.google.com/site/sa4confucius/home/collectivist-and-individualist-
societies>
BRIDGING CULTURAL GAPS IN PROJECT MANAGEMENT. 2017. [Online] Available
through <https://sites.google.com/site/sa4confucius/home/collectivist-and-individualist-
societies>