International Management: A Cross-Cultural Analysis

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INTERNATIONAL MANAGEMENT
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Table of Contents
Task 1...............................................................................................................................................2
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Part B...............................................................................................................................................2
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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Task 1
Introduction
The major point of focus of this present study is to underpin the role organisational culture plays
in context of national and international context. The knowledge for handling diversified
organisational culture has also been mentioned. Furthermore, challenges and opportunities faced
by an organisation while conducting its operations has also been shaded light on. Along with
this, factors contributing towards notion of globalised economy of the country for creating sound
policies. Key conclusions are also derived from the effects of regional cultural issues in response
to corporate culture.
Discussion
Part B
Individually write up your own conclusions as to the key effects of regional cultural issues
on the corporate organisational culture of this multinational company as it conducts its
business internationally
Cross-cultural issues can be considered as the misunderstanding that arises due to cultural
diversification. The conflicts of viewpoints and perspective of both the parties can result in
different national and cultural ties. This difference can be in relation to different nationality,
ethics or religion. As per the views of Stahl and Tung (2015), it can be evidenced that culture of
an organisation can be coined as work apprehension as well as the work relation of different
parties. On the other hand, culture can be identified as the consistency of implicit and explicit
behaviour of the employees and management within an organisation (Fernando and Moore,
2015).
National culture can be coined as the set of beliefs, customs, behaviours, values and learning
patterns of the people. Apart from the mentioned abstract factors, specific characteristics also fall
under this concept that is inclusive of religion, racial identity and other variations. However,
there are certain issues identified due to cultural variations.
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Hofstede’s Cultural Dimension
On the basis of the cultural dimensions of Hofstede, below are the mentioned issues faced by
organisations due to varied culture:
● Tension or conflict is discernible
This is the most common issue that is perceptible within an organisation that occurs due to clash
of views and perceptions. In case of the concerned organisation headquartered in US, operates
itself in UK, India and South Africa, as the individualism rate of South Africa is 65, thus, this
signifies that branch of the company at this place does not prefer discussing ideas much with the
headquartered office. This can raise a conflict with other countries as well (Beugelsdijk et al.,
2017).
● High turnover
Improper work culture and apprehension can harm the rate of employee retention within an
organisation. When employees manage to get better job opportunities, they would definitely
arrange for leaving the company. Here, the concept for employee retention can be different from
the perspective of the organisation of different place. This might create a clash of viewpoints
resulting in high turnover. This issue can be associated with the power more important
dimension from the cultural model.
● Improper flow of communication
Improper communication is a sign of unhealthy work culture. It can be evidenced from the
Hofstede cultural dimensions that India and South Africa has high power distance that makes
them collectivists. Here, lack of communication and improper dissemination of information can
occur (Bakir et al., 2015).
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Figure 1: Power Distance Index
(Source: Bakir et al., 2015)
Trompenaars Model of National Culture
As per the aspects of Trompenaars Model of National Culture, group of people can be
differentiated than that of other group members. Under laid is an instance of differentiation
provided for the selected countries and along with this, issues identified are also discussed.
Basis of distinction UK and USA South Africa and
India
Issues identified
Individualism vs.
Particularism
UK and USA can be
considered as
individualist.
South Africa and
India is collectivist.
Here, there can be
clash of neutrality and
emotions,
achievement and
ascription, internal
and external direction
and time
synchronisation
Communitarianism The former countries
believe in personal
India and South
Africa believe in
In this case, lack of
appropriate
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freedom and self-
achievements, this
makes them manage
their operations on
their own. These two
countries are expert at
time management.
This makes them
achieve their
organisational goals
on the decided time
frame (AlMutairi et
al. 2018)
communitarianism,
with a positive and
rapport aptitude.
There is difference of
perspective in
teamwork and self
work
communication is
identified
Trust and friendship These countries do
not bother for who
the person is and also
does not believe
much in trust and
friendship
The latter countries
try to operate
themselves on the
basis of trust and
friendship.
Due to this variation,
lack of collaboration
occurs.
Table 1: Difference between the countries on basis of Trompenaars cultural dimensions
(Source: Created by Author)
EPRG Model
As per the derivations of this model, it can be observed that the organizations that operate itself
on the international market are based on the notion of applying traditions and practices in
response to cultural values of their own country. Various organisations through different
countries cater to appoint employees with the help of ecocentric approach.
It is necessary to decipher and identify the key challenges. In context of business operating from
the main branch of US to UK, India and South Africa, it is necessary to identify that the
managers and the employees to able to grab multiple tasks simultaneously (Fleischmann and
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Fleischmann, 2019). This can make a huge difference in cultural values of the former and latter
countries. India and South Africa are found to perform their operations on the basis of ethics,
values and trust. On the other hand, UK and US work as per the geocentric approach.
Polycentric approach is embraced by India and South Africa. This makes regional as well as the
cultural difference in the business proceedings.
Strategic International Human Resource
When an organisation operates itself on an international basis, it is necessary to segregate the
core competencies. HR department is wholly responsible towards identifying the aspect
knowledge and skills of the employees and recruit them accordingly. However, it is necessary to
understand and grab the policies and regulations by the employees depending on the place they
are working (Noe et al., 2017). However, there can be issues regarding role of overseas
operations, configuration of assets and capabilities and development of knowledge in
organisational context.
Conclusion
On the basis of above study, it is identified that there are several issues while the an organisation
conducts itself on an international basis. The study put forth different approaches that can be
useful for mitigate the cultural regional aspects. The study undertakes the business relation and
issues faced among them. Cultural diversifications are also administered on the basis of cross-
cultural barriers.
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References
AlMutairi, S., Yen, D. and Heller, M., 2018. The Many Facets of National Culture: A Critical
Appraisal. Comparative Sociology, 17(6), pp.759-781.
Bakir, A., Blodgett, J.G., Vitell, S.J. and Rose, G.M., 2015. A preliminary investigation of the
reliability and validity of Hofstede’s cross cultural dimensions. In Proceedings of the 2000
Academy of Marketing Science (AMS) Annual Conference (pp. 226-232). Springer, Cham.
Beugelsdijk, S., Kostova, T. and Roth, K., 2017. An overview of Hofstede-inspired country-level
culture research in international business since 2006. Journal of International Business
Studies, 48(1), pp.30-47.
Fernando, M. and Moore, G., 2015. MacIntyrean virtue ethics in business: A cross-cultural
comparison. Journal of Business Ethics, 132(1), pp.185-202.
Fleischmann, A.C. and Fleischmann, M., 2019. International orientation of professional football
beyond Europe: A digital perspective on the global reach of English, German and Spanish
clubs. Sport, Business and Management: An International Journal.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Stahl, G.K. and Tung, R.L., 2015. Towards a more balanced treatment of culture in international
business studies: The need for positive cross-cultural scholarship. Journal of International
Business Studies, 46(4), pp.391-414.
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