Analysing Cross Cultural Management in International Business

This report provides a comprehensive analysis of cross-cultural management based on a provided case study. It begins by discussing Trompenaars' seven dimensions of culture (universalism vs. particularism, individualism vs. communitarianism, specific vs. diffuse, neutral vs. affective, achievement vs. ascription, sequential time vs. synchronous time, and internal direction vs. external direction) and their impact on organizational contexts. The report then analyzes the behaviors of Wilhelm and Mr. Haider using these dimensions, highlighting their differing cultural orientations. It identifies the main cross-cultural management issues faced by Wilhelm's business, including differences in punctuality, the involvement of family members in business meetings, and economic concerns related to bank guarantees. Furthermore, it examines how cultural value orientations, such as individuality, collectivism, lifestyle, and behavior, affect management issues. The report recommends the RADPAC model of negotiation (Rapport, Analysis, Debate, Propose, Agreement, and Close) to improve cross-cultural management, emphasizing the importance of understanding ethnic values, addressing punctuality differences, and ensuring confidentiality in negotiations. The analysis concludes by stressing the significance of cultural awareness and adaptation in international business contexts.

Cross Cultural Management

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1: Situational analysis.............................................................................................................3
1. Discussion on Trompenaars’ seven dimensions of culture and their impact in an
organizational context.................................................................................................................3
2. Analysing the behaviour of Wilhelm and Mr. Haider using Trompenaars’ dimensions........4
Task 2: Cross-cultural management issues......................................................................................5
1. Analysing the main cross-cultural management issues faced by Wilhelm’s business............5
2. The management issues which are affected by cultural value orientations in the Model of
Culture.........................................................................................................................................5
TASK 3 RECOMMENDATION.....................................................................................................7
1. Analysing the cultural difference that are impacting the three facets of negotiation in the
given case study..........................................................................................................................7
2. Determining the model of negotiation that leads to improve the cross-cultural management
in the context of given case study...............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Cross cultural management refers as a study of management who influences the societal
culture. This management helps to understand the people of different areas and countries about
their tradition and culture they had from their home country. In the given case study, it has been
mentioned the importance of meaning of the cross cultural management and business and its
effectiveness (Fedorova, Dvorakova, and et.al., 2021). The report will help in illustration of the
cross cultural management in regard of the case study given.
MAIN BODY
Task 1: Situational analysis
1. Discussion on Trompenaars’ seven dimensions of culture and their impact in an organizational
context.
To understand the cross cultural effectiveness in definite manner here performing a
model which will help in the comparison of the countries culture. The model named Trompenaar
seven dimensions of culture which is utilized to compare and make a differentiation between the
two countries culture. This model is consisted of seven elements which are described below in
detailed manner.
1. Universalism vs. particularism: The universalism mainly refers as an entrepreneur who
believes in the rules more than the relationship in the business. On other side, the particularism
means a culture who possibly believes in relationship more the rules and regulations. According
to the case study, Mr. Haider was following the particularism where they involve their family
members in a business meeting and Wilhelm focuses on rules.
2. Individualism vs. communitarianism: Individualism is already cleared with its name where
they believe in making the decisions individually and not required to be consulted from anyone.
Whereas, the communitarian includes the working and decision-making process in a group.
Wilhelm follows and have a culture where he believes in individualism and Haider in
communitarism.
3. Specific vs. diffuse: Specific culture people keep their personal and professional life separated
as well and diffuse include the personal and professionalism together (Chated, Wisetsri and
et.al., 2020). As, Haider includes their family members in the meeting which is showing the
diffuse culture and Wilhelm did not like to involve the personal relationship in professional life.

4. Neutral vs. affective: Neutral cultural people do not express their emotions at working place
thus, the affective cultural people include their feelings and emotions at working. Haider is from
affective culture and Wilhelm from neutral.
5. Achievement vs. ascription: The people who belong and perform their work through their
knowledge and skills and earn are from achievement section and ascription culture involves the
people who are based on their age, education and social status and not from their skills.
6. Sequential time vs. synchronous time: Sequential cultural people are possessive about their
time and like to do projects by the given completion but synchronous involves the flexibility in
completing the deadline and projects.
7. Internal direction vs. external direction: People or business man who adopts the internal,
believe in controlling the organizational environment to obtain their goals. On another hand, the
external direction cultural people create an environment where they work with them. Their main
aim is to make a strong relationship between each other and can make a togetherness bond in the
organization (Lifintsev, and Wellbrock, 2019).
2. Analysing the behaviour of Wilhelm and Mr. Haider using Trompenaars’ dimensions.
According to the behaviour of Wilhelm and Mr. Haider it has been determined that both
the people believe in different cultures and have a different manner and objectives to the work.
Coming to Mr. Haider first, he follows the culture where he focuses on the relationship and
flexibility in their working process and not much focused about the rules and regulations.
Focusing on the relationship more than rules shows that Haider follows the particularism culture
but Wilhelm likes to concentrate on the rules more than relationship which shows that he belongs
to a universalism culture (Dinh, 2019). Haider also involves their decision-making processes and
consults with his family and friends openly which Wilhelm did not encourage their decision-
making process and likes to take the decision individually.
Involvement of family and relatives shows the communitarianism and taking individual
decision reflects the individualism culture. Along with this, Mr. Haider also mix their personal
and professional life together which refers as they belong from specific culture and Wilhelm
from diffuse culture as he does not mix the professionalism and personal life together. It has been
observed that Mr. Haider was from affective culture and Wilhelm from neutral. Wilhelm is able
to utilize his skills in the working where Header works and win the position from his education
and social status which means he belongs to ascription and Wilhelm from achievement culture.

In a case study also, the punctuality and timing is important to make a deal where Mr. Haider
was late from which is has been determined that they believe in synchronous time culture.
Wilhelm adopts the external culture where he makes the organizational environment better and a
team working standard but Mr. Haider has internal direction culture where he makes the
organization surrounding to make the company win.
Task 2: Cross-cultural management issues
1. Analysing the main cross-cultural management issues faced by Wilhelm’s business
In the case study, it has been performed that Wilhelm has faced some issues due to cross
cultural management where he did not able to understand the Mr. Haider business structure and
actions he has done in the meeting. Haider do not focus on the punctuality and timing in business
deals and meetings which makes the Wilhelm a problem as it seems like a little
unprofessionalism according to the culture he belongs. Punctuality is the first problem Wilhelm
has faced during the meeting hours. Second issue was Mr. Haider involves their children in the
meeting where the Wilhelm has felt that can he trust their two sons as it is a confidential
information (Borisovich, and Sergeevna, 2020). Involvement of a family members and friends in
a business meets are quite a problem for Wilhelm. The last problem he faced is about the
economic issues where Haider was not ready to provide a bank guarantee and also not going to
involve in the financial matters. These three issues have been founded and analysed in the cross
cultural management business where Wilhelm has faced an issue.
2. The management issues which are affected by cultural value orientations in the Model of
Culture

Management issues includes the various areas from which a cross-cultural business gets
impacted by the differentiation. It includes language, education, religion, behaviour and working
structure which makes the difference in two parties in a business. In the case study, it has been
studied that due to cross culture environment and management Wilhelm has faced some issues
which is not applicable ad performed in his culture (Jackson, 2018). Mr. Haider management has
affected the value orientation of the culture from Wilhelm belongs. The Wilhelm has been
affected by the behaviour and structure of the organization. There can be different kinds of
cultural issues has been performed in entire world where Wilhelm also faced some of them. The
behaviour of the Haider is quite confusing for the Wilhelm as he is not punctual and even
Cross cultural
management
Behaviour
Individuality
and
collectivism
Lifestyle

involves his family and friends in the meetings which made the Wilhelm to think an
unprofessionalism.
Lifestyle: As, it has been known that countries have different lifestyles which affects the cross-
cultural management (Edelmann and Mohr, 2018). In the case study, Mr Haider has its own
culture where he adopts a different lifestyle and personality which makes an issue for the
Wilhelm.
Individuality and collectivism: In this factor, Mr. Haider was a person who belongs and
believes in a group work where Wilhelm like to do work individually. This culture has affects
the differentiation in decisions making process in the cross cultural management and affects the
business.
Behaviour: Every individual person ha its own home culture from which he believes widely as
obvious. Wilhelm had a problem in understanding the behaviour and personality of Mr. Haider
due to different cultures dimensions. A personality is also an issue which changes the thinking of
another cultural person as it is possible that another person has different ideology and
behavioural.
TASK 3 RECOMMENDATION
1. Analysing the cultural difference that are impacting the three facets of negotiation in the given
case study
The cultural differences refer to the barriers that reduces the interaction among the people that
are from the different background. As it has been known in the given case study that Mr. Haider
and Wilhelm was from the different background and when the meeting took place among them it
has shown the cultural differences and those are:
Ethnic- This determines the values that has been possessed by the people on then basis of their
culture (Leahu, Kaisers and Baarslag, 2019). It is important to understand the opinions and
values of the people with whom the business or contract has to be sign. In the case study, Mr.
Haider greets other Men's with kiss and on the other hand, Wilhelm has been greeted with the
handshake. However, Wilhelm was ready to be greet in same manner as Mr Haider has treated
other people. Here, at this point. Wilhelm has a sense of no belongingness.
Punctual- It can clearly depict from the case study that, Mr Haider was not punctual may be this
is the part of their work culture (Tietze, 2021). And Wilhelm came at the exact time in order to

negotiate. This created the thought in the mind of Wilhelm that, Mr Haider r is not man of his
words as he did not come on time then how could the trust has been done.
Confidentiality- The negotiation that has been done among two parties has to keep confidential
as it is the matter of high security. However, Mr Haider was discussing everything in front of
their sons. This, this again indicating the cultural difference that was impacting the negotiation.
Maybe in Mr Haider culture it is normal to involve family members in the business discussion.
2. Determining the model of negotiation that leads to improve the cross-cultural management in
the context of given case study
RADPAC model of negotiation generates the guidelines for the parties who are from the
different background this includes:
Rapport- It suggests that, before starting the negotiation the parties must have the good rapport
so then can feel easy while sharing of their opinion. It helps in understanding the values of each
other. Mr Haider and Wilhelm must use this element before starting the negotiation as it leads to
understand each other values.
Analysis- This refers to the implementation of effective understanding among the parties by
giving the opportunity of sharing the opinions. (Rodriguez-Fernandez and et.al., 2018). Mr
Haider and Wilhelm must follow this so, it can provide the opportunity of sharing the opinion to
Wilhelm as the involvement of the family has not been liked by Wilhelm.
Debate- The different interest and opinions on the basis of debate has to be share as it is right of
both the individual that are involved in the party that they share their interest and rights. By
adopting this, Wilhelm got the opportunity of expressing their interest in relation of making
negotiation.
Propose- In this process of negotiation, an individual has a right to share their ideas and sharing
the interest in the working activity where Wilhelm has showed his interest and dedication in the
business deal and propose his idea to Mr. Haider.
Agreement- In this phase, it is a kind of voting round where each participant and individual can
vote and select for the best ideology and though and can adopt the solution for the most voted
concept.
Close- As, the agreement has happened from both sides it includes a written documentary or
notes during the meeting. It creates a transparency to keep the working fair.

CONCLUSION
Summarizing the above report which has mentioned the meaning of the cross-cultural
management and also provided a brief knowledge related to different culture of countries. It also
includes the cross-cultural management issues regard to the case study and provided a well-
designed recommendation which can help an individual to understand the concept in better way.

REFERENCES
Books and Journals
Fedorova, A., Dvorakova, and et.al., 2021. Monitoring changes at work: cross-cultural difference
in employees’ evaluation. In SHS Web of Conferences. (Vol. 129, p. 08006). EDP
Sciences.
Chated, M., Wisetsri, W. and et.al., 2020. Cross Cultural and Diversity Management in
Globalization. Nimitmai Review Journal. 3(1), pp.1-7.
Lifintsev, D. and Wellbrock, W., 2019. Cross-cultural communication in the digital age. Estudos
em Comunicação. 1(28). pp.93-104.
Dinh, N.T.H., 2019. The Vietnamese Community in the Czech Republic: A Cultural Values
Analysis. (Doctoral dissertation, Empire State College).
Borisovich, I.A. and Sergeevna, S.Y., 2020. EXPORT OF ENTREPRENEURIAL CULTURE:
CASE STUDIES FROM FINLAND AND GERMANY. Интеллект. Инновации.
Инвестиции. (6).pp.40-47.
Edelmann, A. and Mohr, J.W., 2018. Formal studies of culture: Issues, challenges, and current
trends. Poetics, 68, pp.1-9.
Jackson, T., 2018. What makes cross-cultural management scholarship critical? It depends on
how we understand ‘culture’. International Journal of Cross Cultural
Management. 18(3), pp.267-270.
Tietze, S., 2021. Cross-cultural management revisited: A qualitative approach.
Rodriguez-Fernandez and et.al., 2018, June. Reputation computational model to support
electricity market players energy contracts negotiation. In International Conference on
Practical Applications of Agents and Multi-Agent Systems (pp. 125-133). Springer,
Cham.
Leahu, H., Kaisers, M. and Baarslag, T., 2019. May. Preference Learning in Automated
Negotiation Using Gaussian Uncertainty Models. In AAMAS (pp. 2087-2089).