Literature Review on Cross Cultural Management
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Added on 2021-06-17
Literature Review on Cross Cultural Management
Added on 2021-06-17
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CROSS CULTURAL MANAGEMENT 1LITRATURE REVIEW ON CROSS CULTURLA MANAGEMENTName:Institution:Course:Tutor:Date:
CROSS CULTURAL MANAGEMENT 2IntroductionIn the past decades, there have been increased social interactions that have resulted in cultural diversity. The cultural diversity in many institutions causes different behaviors of employees calling for the need of cross-cultural management to enable each person in a society to accommodate the diverse cultural practices. The cross-cultural management is essential in the global leadership as it enables effective management of diverse people with diverse cultural behavior. This paper is a literature review of an article on the development of cross-cultural management to the global leadership with emphasis on the culture and business, culture and MNCs, and culture and communication. According to the article, cross-cultural management and global leadership are interrelated and have a long history. The article denotes that cross-cultural management arose simultaneously with organizations behavior and management back in the 1900s and not as a result of the World War II. The early works of cross culture management consisted of identification of the theories that were capable of relating and making cultures relevant to others. However, these theories lacked sophisticated approaches for difference exploration of cultures. From1960 to 1980, cross-cultural management focused on the study of organizational behavior and management systems of other countries apart from the United States that had cultural settings that were perceived as foreign. (Weber 2016).After the World War II, many organizations mainly from America moved across borders in search of a market for their products. These firms sent expatriates to the overseas countries to oversee the management of those foreign investments by training the local managers; however, the management was not easy as in the mother countries as a result of the
CROSS CULTURAL MANAGEMENT 3effect of local cultures, political, business, and legal system. There was a need to extend the American management techniques by expatriates who had difficulty in adapting to the local cultures and assigning of the local employees led to global leadership. This led to an organizational restructuring of most of the multinational corporations from the multi-domestic, regional and matrix organizational structures, thus required expatriate to acquire more skills that enabled them efficiently operated in those foreign countries. This led to the development of Hofstede’s cultural theory used by current global leaders.Cross-Cultural ManagementCross-cultural management refers to the process of accommodating and controlling differences cultural practices in an organization to allow mutual understanding among employees of the different cultures. Multinational Corporations are companies that operate in some countries with all operations done from the home country. Such group companies are always subdivided into four main categories that are: multinational, decentralized corporation with the availability of stable home country (Molwa et al. 2013, p.10). The centralized global corporation that tends to acquire cheaper resources on the availability of support that is more cheaper thus international companies that develops Parent Corporation’s technology, and the transnational enterprise that applies the three approaches in their operation.Cross-cultural management entailed research on leadership related issues and categorized into uni-cultural, comparative, and intercultural. The uni-cultural emphasize on the organizational management within a single country, for example, the German organizations that have provided dynamic knowledge on country-specific and culture-specific leadership. The comparative
CROSS CULTURAL MANAGEMENT 4emphasize on the comparison of two or more countries for example in Mexico, based on psychological and the sociological perspectives that employee the cultural theories and frameworks to explore the perspectives Turkey and India.Previous comparatives leadership studies indicate large differences in the leadership style and followers behavior between or among many cultures. For example, the collectivist cultures people are more like to follow a leader than individualistic cultures, and leaders in the high power distance are more authoritative than leaders from the low power distance. Finally the intercultural research entailed the study among many countries and focuses on how an individualfrom one successfully or unsuccessfully blend with cultural differences associated with management practices.All these categories utilize culture as the basis of the operations since there is always the availability of numerous employees with a diverse background. Cultural differences tend to affect organization trade behaviors, therefore, changing the international trade practices that are much far different with the parent country, therefore require proper cultural management since they are always faced with difficulty in decision making, marketing problems and safety issues.Cross-cultural management requires applications of various theories such as Hofstede's model that entails individualism/ collectivism, masculinity/feminist/ uncertainty/avoidance, and power distance (Garriott et al. 2017, p.306). The approach provides various reasons of cultural behaviorof employees from a different background, for example, in power distance cultures; individuals are always in love for power and always feel very bad when giving orders by other people. An employee from countries such as Malaysia tends to show great deference to those that are on the
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