Cross-Cultural Management: Issues and Theories

Joel: Hi, this is Joel. The podcast on cross-cultural management that is on air is based on
the actions that need to be taken when the managers tend to be native. I will be discussing with
Antonella, Donatas, Marta and Nedko the issues that have been highlighted in the case study that
bears relevance to the theories of cross-cultural management.
*(The significant music jingle of the show plays in the background)*
The case that we would discuss is based on the decision-making activities of Graham
Steinberg, the vice president of an US Hydro Generation (HG) organization. He is asked to
decide whether the project manager of the preliminary assignments and the construction, Brett
Jones, should be re-appointed as the project liaison specialist for construction. The case has shed
major light on two major issues with the assistance from the reflective theories on the
implementation of the decision.

We would initially discuss the contradiction of the organizational culture with the
behavior demonstrated by Brett Jonas.
Jonas is known to be abiding by the organizational values. However, he might need to
gather support from the local community for continuing the progress of the project. The national
culture power distance index, as stated by Hofstede (1983), helps in answering the query
regarding the implementation of focusing on the authorities rather than on the villagers.
The power distance index of Tanzania is 70. This reflects the fact that the people of the
area are prone to the acceptance of the hierarchical order within the organizations that operate
within the country.
*(The national anthem of Tanzania plays in the background)*
Donatas: Yes Joel, the information you just shared is true. House (2004), in the GLOBE
nine-dimension theory, states that the power distance index might also be considered to be a
form of leadership. Brett is observed to have implemented nepotism in the recruitment of the
employees. He had employed the kin of the authoritative people in the area thereby ensuring a
greater hold on the team involved in the project as well as over the local community.
Joel: So, can you please explain how does that affect the leaders?
Donatas: Tanzania, according to the countries in the cluster of GLOBE is observed to be
identifying the attributes, behavior and the organizational practices that are demonstrated by a
global leader.
Joel: So, can you please explain how does that affect the employees?