Cross-Cultural Management: Leadership, HRM, and Decision Making Report

This report delves into the realm of cross-cultural management, focusing on its significance and implications within the context of Home Furniture Ltd. It explores the advantages and disadvantages of globalization and the importance of managing diverse cultural backgrounds within an organization. The report examines the influence of national cultures on leadership styles, decision-making processes, and human resource management (HRM) practices. It highlights the application of Hofstede's cultural dimensions theory and the importance of adapting leadership styles to different cultural contexts. The analysis includes various leadership styles such as autocratic, democratic, and transformational, considering their suitability in managing cross-cultural teams. The report emphasizes the need for effective strategies to mitigate conflicts and foster collaboration in a globalized business environment, concluding with key insights for successful cross-cultural management.

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Table of Contents
PART 1............................................................................................................................................1
Importance of cross- cultural management and globalisation with its advantages and
disadvantages..............................................................................................................................1
PART 2............................................................................................................................................2
Influence of national cultures on leadership, decision making and HRM..................................2
PART 3............................................................................................................................................4
The cultural differences found across countries and suitable leadership style...........................4
REFERENCES................................................................................................................................6

The present report is based on Home furniture Ltd which is known for production of
furniture products at reasonable price in order to fulfil desires of people easily. It was founded in
the year around 1970 and its goods are mostly favoured by youngsters and families with a small
budget. Moreover the people working in an organisation but have different cultures may create
conflicts among them which impacts negatively on regular outcomes of business (Thomas and
Peterson, 2017). This essay will focus on importance of cross- cultural management and
globalisation along with its advantages and disadvantages. It will also include influence of
national cultures on leadership, decision making and HRM. The cultural differences found across
countries and suitable leadership style is given below.
PART 1
Importance of cross- cultural management and globalisation with its advantages and
disadvantages
Cross culture management refers to process of managing people from different cultural
background and countries to facilitate effective coordination among them. It is essential to
generate an appropriate cooperation between staff members performing in an organisation but
belongs to different nations. However, there are various kinds of strategies, theories and
techniques can be utilised to reduce risk of generating conflict among staff members due to
different cultural backgrounds. In context of Home furniture Ltd, they are required to implement
more suitable theory to maintaining culture of organisation so that they can perform effectively
to create maximum outcomes. It involves effective and suitable strategies in terms of maintaining
working culture of an organisation so that people can perform their tasks by following the same.
Additionally, it is necessary to establish an appropriate culture of work place including efficient
rules and policies so that people will them only through avoiding their personal culture while
working. However, it will provide support to gain healthy working environment which facilitate
to complete targets and objectives successful (French, 2015).
At the other hand, it is important to establish effective working environment in given
organisation as they are expanding their business in different countries and hiring employees as
well. It is essential to make an appropriate working culture so that conflicts due to different
cultures can be of them can be avoided and targets can be complete properly by efforts of team
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work. In addition to this, Hofstede's cultural dimensions theory of managing cross culture
including communication, international management and psychology of conversation which can
be applied by given organisation. However, this model involves several dimensions such as
which should be focussed by power distance index, individualism Vs collectivism, uncertainty
avoidance index, masculinity Vs femininity, long term Vs short term orientation and indulgence
versus restraint. Moreover, these dimensions are required to be concentrated while maintaining
effective working environment in order to conduct cross cultural management in organisation
(Johnson and Cullen, 2017).
There are various kinds of advantages which are achieved by implementing Hofstede's
cultural dimensions theory for management of cross- culture. It involves various kinds of
strategies and practices to make appropriate working environment by taking care of required
factors so that appropriate policies as well as rules can be prepared for implementation.
However, it is favourable that staff members of Home furniture Ltd will only follow specific
cultural of values of organisation while working together which reduce risk of generating
conflicts among them. Moreover, it is suitable because people will belongs to same culture
professionally which facilitate to increase effective coordination as well as cooperation which
helps to enhance business with attaining more profit share in different markets of several
countries. Additionally, it is helpful to to expand business at global level which results into better
growth and success of the business.
At the other hand, it is analysed that enhancing business in other countries has a demerit
of following various legislation of different countries which restrict to conduct several business
aspects which are very profitable (Steers and Sánchez‐Runde, 2017). However, it involves about
having limited opportunities for business due to enhancing company in various nations as it is
mandatory to obey their legislations properly. Management of cross culture is a time consuming
pro cess in terms of making effective polices and it is not easy to apply them in business for
facilitating achievements of better profits.
PART 2
Influence of national cultures on leadership, decision making and HRM
The given organisation 'Home furniture Ltd' is expanding their business in different
countries along with providing employment to citizens as well. It is necessary to maintain
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favourable working environment of organisation for avoiding conflicts among staff members
belongs to different cultures. However, it is essential to manage overall operational activities in
various stores, offices and production units of given organisation by establishing effective
working culture. It impacts on regular outcomes of every employee which provide support to
gain targets successfully on required duration of time. There are various kinds of factors which
are necessary to be considered while making policy in company for specific purpose (Triandis,
2017). Meanwhile, Home furniture Ltd should implement effective leadership style and
appropriate decision making strategy which is suitable for business. In addition to this, national
cultures in particular organisation impacts on leadership, decision making and HRM which are
discuss below.
Leadership can be described as an action of leading a group or people or an organisation
with the help of their effective skills and abilities. A person bears leadership quality and practical
skills along with fulfilling desired roles is known as leader. However, it will provide support to
analysed suitable leader style for implementing in company in order to deal with different critical
situations of business for reducing threats of performance to remove risk of facing loss.
Leadership styles includes situational theory, contingency theory and system theory which can
be utilised in Home furniture Ltd for leading people of cross culture. Additionally, managing
cross culture through leadership is very difficult as single theory is not applicable on people of
different countries which create issue for establishing coordination among team members.
Meanwhile, it will facilitates to reduce effective performance which impacts negatively on
desired goals and objectives of business.
The decision making is very important task as it is responsible for attaining required
profit of business (Berry, 2015). It involves about to make correct decision for employees,
generating strategies and techniques for welfare of company while conducting different
operational activities. However, decision making becomes very time consuming activity because
of considering various factors like social orientations including values and cultural norms of
people working in organisation in order to maintain their motivational level. In case of Home
furniture Ltd, they are required to face several elements like cross cultural communication,
negotiations and conflict resolutions. It is a time consuming process and increased risk factors
are analysed in such cases.
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The term human resources management refers to managing staff members working in
organisation at different branches on regular basis. It involves to provide employment to well
skilled and experienced people so that they can fulfil required roles of specific designation in
proper manner. In case of cross culture, it is necessary to analyse different courses, degrees and
diplomas so that appropriate candidates can be hired in company from different nations. In
context of Home furniture Ltd, they can achieve a benefit through hiring employees belongs to
different cultures as they bears differentiated skills as well as abilities which are beneficial for
business activities.
At the other hand, dealing in cross culture has both negative and positive impact on
business but it is required to put efforts to achieving the benefits (Smith and Peterson, 2017). It
involves the criteria of implementing effective strategies and techniques in order to reduce risk of
negative impacts along with elaborating benefits from positive factors while expanding business
in different nations at global level by Home furniture Ltd.
PART 3
The cultural differences found across countries and suitable leadership style
The culture can be described as social behaviours and norms in human societies which
are found in various countries are different and impacts on mid set of people living in specific. It
includes the criteria of their working style, thoughts and views which reflects about culture of
their native country in proper manner. However, they are required to make an appropriate
strategy or policy in organisation so that they can easily accept them while working on regular
basis. Meanwhile, it is important to analyse cultures of different nations before preparing
effective rules and regulations to conduct management of the same appropriately. In addition to
this, Home furniture Ltd is required to utilised desired leadership style for managing cross
cultural issues in order to organise healthy working environment of workers.
At the other hand, it includes several types of cultures like in some countries people have
habit to follow working duration of 6 days in week and in few another nations people have
culture of working 5 days in a week. Additionally, in some of countries they mostly focus on
innovation which impacts on min set of workers in terms of performing their in creative manner.
Moreover, some of countries will put efforts more in manufacturing processes in order to reduce
overall cost of production along with boosting up profitability of company. Home furniture Ltd
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should focus on these cultures and then make policies and regulations of business which are
suitable for employees as well as company. Meanwhile, there are several types of leadership
style are analysed which can applied in given company including autocratic, democratic,
bureaucratic, laissez fire, transactional and transformational. It is necessary to analyse these
leadership styles by Home furniture Ltd and evaluate most suitable one for implementation.
Autocratic leader consist overall power in order to make every decision and never apply
delegation of authority so that they have significant control over which rarely consider worker
suggestions and share power. However, democratic leadership style involves the criteria of
participative style in which leaders ask for suggestions to take final decision. Moreover,
bureaucratic focus on strict working environment and rules are very important. Additionally,
transformation leadership refers to typically inspire staff by generating environment of
intellectual stimulation (Reiche and et. al., 2016). Meanwhile, transactional leadership involves
the organising clear chain of command utilising carrot and stick approach to management
activities. Home furniture Ltd should apply most suitable leadership styles for managing cross
cultural people in organisation in respect of attaining desired goals of business.
The above report is conclude that cross culture management is a typical aspect but
required to expand business at global level. It includes utilisation of Hofstede's cultural
dimensions theory for managing cross culture in business for facilitating better conduction of
operations along with achieving better profits. Moreover, it involves various leadership theories
which can be used by given company like autocratic, democratic, bureaucratic, laissez fire,
transactional etc.
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REFERENCES
Books and journals
Thomas, D. C. and Peterson, M. F., 2017. Cross-cultural management: Essential concepts. Sage
Publications.
French, R., 2015. Cross-cultural management in work organisations. Kogan Page Publishers.
Johnson, J. L. and Cullen, J. B., 2017. Trust in cross‐cultural relationships. The Blackwell
Handbook of Cross‐Cultural Management, pp.335-360.
Steers, R. M. and Sánchez‐Runde, C. J., 2017. Culture, motivation, and work behavior. The
Blackwell Handbook of Cross‐Cultural Management, pp.190-216.
Triandis, H. C., 2017. Generic individualism and collectivism. The Blackwell handbook of cross‐
cultural management, pp.16-45.
Berry, J. W., 2015. Global psychology: Implications for cross-cultural research and management.
Cross Cultural Management. 22(3). pp.342-355.
Smith, P. B. and Peterson, M. F., 2017. Cross‐Cultural Leadership. The Blackwell Handbook of
Cross‐Cultural Management, pp.217-235.
Reiche, B. S. and et. al., 2016. Readings and cases in international human resource
management. Taylor & Francis.
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