Report: Developing Cross-Cultural Capability in Global Organizations

This report delves into the critical aspects of developing cross-cultural capability within organizations. It begins by defining and analyzing culture shock, its effects on individuals, and the repercussions of expatriate failure on organizational performance. The report explores the significance of cross-cultural communication, including ethnocentrism and conflicting values, and proposes policy and action plans to foster a more inclusive and effective work environment. It examines the impact of cross-cultural conflicts on organizations and identifies key factors for building successful teams across diverse locations, emphasizing the importance of cohesiveness. The conclusion stresses the need for organizations to support expatriates through training and assistance to facilitate their integration and enhance overall performance. The report provides a comprehensive overview of the challenges and opportunities inherent in a globalized workforce and offers practical recommendations for fostering cross-cultural competence.

Developing Cross-
Cultural
Capability

Table of content
 Introduction
 Effect of cross culture shock on individual
 Effect of Ex-pat Failure on organization
 Cross cultural communication
 Policy and action plan
 Impact of cross cultural communication on organization
 Factors to be considered while making Teams across
different locations
 Conclusion
 Reference

Introduction
 With the increased globalisation, organisations are
expanding its subsidiaries globally to achieve the benefits of
global expansion. But with global expansion the problem
arises to manage the disparities between the diverse
workforce. The diverse workforce represents the inculcation
of people with different backgrounds, culture and region.

Culture shock
The Culture shock is the feeling which a
person face in adjusting to the new place
culture. It arises out of the individual
unfamiliarity and lack of adjustment with
the host culture place custom, language
and culture. It results in the disarray of
the person which is faced due to
immigration to new country or place due
to work.

The stages of the culture shock
 Honeymooners : At this stage the person is excited to
explore the new place.
 Culture shock : This is the stage where the excitement
seems to fade away and the person states feeling disoriented
from the environment of that place. The anxiety and
depression overtakes the productivity of person.

Effect of Culture Shock on the
individual
 Psychological and Physical symptom : The expatiates face
mental pressure which impacts their health. As, the
international assignment is for long time its not one week
stay that it will be easy to adjust. The adjustment in the food
and interactions weak out the people when they could not
adjust. When the people do not get their preferred food it
creates the irritation, anxiety and depression.

Effect of Ex-pat Failure on
Organisation
 Increased cost : The expatriate failure to achieve the target
results in the increased cost on organisation. As, the training
cost given to them fails and their non achievement of task
cost is also beared out by the organisation

Cross-Cultural Communication
 Ethnocentrism : This is the way of looking at the world
from our own perspective. Without knowing the implied
true facts an individuals create their perception regarding
certain culture. This creates an rough edge in interactions
among the employees. The pre set notions create the gap in
interactions among workforce. They set their own
judgements based on their own analysis. The inferiority and
superiority complex rises between the employees.

Cross-Cultural Communication
 Conflicting values : Every culture has its own values and
beliefs which is reflected on individual personality. The way
of acting and behaving is all guided by the cultures. For
doing any thing there is no set pattern every one behaves
according their guiding values. Such as in Australia people
conduct the business meetings causally wile in Japan and
Korea people tend to be more formal while conducting the
business meetings. To an, person belonging to the informal
vales this formal acting may act as an burden and show off.

Policy and action plan
 Aims:
 To provide diversified experience to senior management
staff in respect of implementing policies by which overall
development can be inhaled.
 To create fair environment in which workplace culture can
be promoted in appropriate manner.
 To build and retain long term relationship with staff by
enhancing their capabilities and strengths.

Impact of Cross-Cultural conflict on
organisations
 With the diverse workforce it is difficult for the
management to maintain equality and satisfaction among the
workforce. While addressing the diverse workforce the
main challenge is to change the norms and set practices of
employees. While addressing the acculturation training after
this also the equality in practices couldn't be achieved. As,
the employers move towards the goal of integrated and
diverse workforce the set unconscious bias wakes up.

Factors to be considered while making
Teams across different locations
 Cohesiveness : The cohesiveness is an major factor which binds the
team as an whole to stay united. The cohesive group members
efforts are targeted towards excellence and produces unity in
actions. It affects how the employees get well along with each other.

Conclusion
 Therefore, from the above discussions it can be interpreted
that the culture shock effects the individual and organisation
performance largely. The organisation should focus on
giving proper assistance and related trainings to help the
expatriates to effectively settle in new place.

References
 Assawavichairoj, S. and Taghian, M., 2017. Cross-cultural comparison
of consumer pre-purchase decision-making. Asia Pacific Journal of
Marketing and Logistics.
 Au, K., Han, S. and Chung, H.M., 2018. The impact of sociocultural
context on strategic renewal. Cross Cultural & Strategic Management.

Thank You