Cross Cultural Management Report: Leadership and HRM in HGE

This report provides a comprehensive analysis of cross-cultural management issues within Hydro Green Energy (HGE), a US-based company operating in Tanzania. The report delves into the challenges arising from differing cultural practices, leadership styles, and employee lifestyles, using Handy's and Harrison's cultural models to analyze these issues. It explores the implications of Jones's operational methods and lifestyle choices on the organization's values and performance. The report further examines situational and path-goal leadership theories to offer recommendations to the HR department on improving cross-cultural management, employee motivation, and retention. It also addresses communication and negotiation strategies, national culture considerations, and the application of corporate social responsibility to foster a more inclusive and effective work environment. The report concludes with recommendations for ethical practices and CSR initiatives to improve employee satisfaction and reduce turnover.

Cross Cultural Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Jones methods of operations that contradict to organizational culture ..................................1
2. Jones lifestyle inconsistent to company’s values....................................................................3
3. Reflective report......................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Cross Cultural Management is the management of those teams working in the organization, in
which different-different culture and background of people are coming and working together to
achieve common goals and objectives of organization. Hydro Green Energy is a US based
private and well developed company whose focus is on building low impact hydro-power
projects. Report highlights organizational issues, leadership issues and deal with the issues
through HRM and motivation in the context of Cross Cultural Management. It also describes
MAIN BODY
1. Jones methods of operations that contradict to organizational culture
ISSUES FACE BY HGE
There are several Cultural issues which have been face by HGE. This can be resolved by
organization by using various cultural models.
Model 1 - HANDY'S MODEL OF ORGANIZATIONAL CULTURE - As starting the project,
Dam construction required huge amount of capital as HGE is constructing a dam in Tanzania and
it required huge amount of capital so to gather a huge amount is itself a big task but HGE 's is a
specialised power plant and build plant in all most sixteen countries and retain ownership shares
in about half of them but as talking about Tanzania it was the first big project venture. By the
help of power culture many issues are being solve in this theory HGE will response quickly and
the performance of people are being judge on what people achieve and do. In this HGE has to set
few rules and regulation and generally the power culture is a strong culture (Tierney, 2016).
A constructing a dam was not an easy task in Tanzania but HGE has taken initiative but the
people of Tanzania was not in favour as they have to face lot of difficulties as they have to move
from their place as the subsequent flooding and these will affect their lifestyle of the people and
that was the main issue of HGE as they were not getting the support from local rites (Handy's
cultural theory, 2016).
There was also a difference of opinion between both Graham Steinberg and Jones as both doing
work and tackling work was different as both business practices was different and dealing with
the work was totally different that could affect HGE's performance. Steinberg was also concern
with Jones lifestyle as HGE was no formal guideline on lifestyle but Jones preferences for
isolating himself from other. By the help of role culture HGE can built organizational structure
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which help to take decision very fast and then there will be no issue of difference in perceptive
and every one opinion is respected. By the help of task culture HGE can heir employees which
are productive and creative and also have skills, personalities and leadership quality.
Model 2 - HARRISON'S MODEL OF CULTURE - HGE's one of the most important issue was
the local people was having blind faith that is people was believed in the spirit and for that local
people has scarifies a sheep, a cow four goat and a slew of chicken and while forty diviners
prayed and dance and also Jones took part in that ceremony so that he win the trust of the local
people and also Jones was good at dealing with local people. And these issue can be solve by
person culture as in these individual are given value and consider individual as unique and
superior to the organization. Organization is just a set of people and by these HGE can resolve
the issue (Banks, 2015).
ANALYSING THE ISSUES USING LEADERSHIP THEORIES
Theory 1 – SITUATIONAL LEADERSHIP THEORY – According to this theory, No leadership
style is effective. Effective leadership are those which is adopted according to the situation or
tasks given to the leaders. Hydro Green Energy (HGE)'s leaders can adopt this theory to solve
their issues (Thomas, 2017). In HGE, there was different perception based people who have
different personalities and understandings so through this theory, HGE leaders should understand
that what kind of personalities are working in HGE then he should build relationship with them
and keep conversation with them to build strong understanding between them. Like this different
perception people will understand each other and respect each other's perceptions, values,
lifestyles and cultures. These understandings will create effective cross cultural management in
HGE.
Theory 2 – PATH GOAL LEADERSHIP THEORY – According to this theory, Leaders are the
one who shows the path to his followers and if they face any problems then leaders will help
them to face the problems. By adopting theory, HGE's leaders solve the problems of employees
and become directive and supportive to them. They actively participate in their problems and
works. They make feel them that they are not alone in any problems and they are not alone
responsible for the results. They help their followers to achieve goals. So by this theory, they can
reduce the employee turnover in HGE and retain their employees for long time in Organization
(Rice, 2015).
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Recommendations To The HR That How To Overcome With The Issues
1. HR of HGE should organized Cultural activities, through which employees get to know
about the different cultures, regions and values and respect them.
2. HR of HGE should celebrate every festivals. Through which employees get motivated
and feel happy that their cultures are being valued this lead him to respect others'
cultures.
3. HR of HGE should conduct motivational activities and programs for employees like give
rewards to those employees whose performances are goods, do role switching with them
etc.
4. HR of HGE should listen to their employees' problems and quickly solve them.
5. HR of HGE should make leadership policy like this, in which leaders should focus on
individual rather than teams.
6. HR of HGE should encourage open communication system in the organization which is
good for HGE's employees-employer relationship which is good for motivation of
employees as well.
7. HR of HGE should make organizational policy in which there is no place for Inequality.
8. HR of HGE should make transparent policies and also it's all operations and decisions
should be transparent.
9. HR of HGE should hire Morale officer in the organization to keep motivate their
employees.
10. HR of HGE should provide honest feedbacks to their employees.
From the above points, employees get happy and motivated, which encourage them to work with
other employees for achieving common goals of HGE. When they work together, they come
close. When they come close, there is creation of understanding between them and they do
respect each other in every aspects, which reduces all issues regarding cross cultures (Frijns,
Dodd and Cimerova, 2016).
2. Jones lifestyle inconsistent to company’s values
Description Of Communication And Negotiation
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Hydro generation is facing many some issues related to different factors HGE's project faces
many oppositions from the group of the local p;people of other party than this problem can b
solved by communicating with the local people and make them understand the requirement of
the project and make people in HGE's favour. The construction of damn also requires huge
capital which is also an issue and problem faced by HG, for construction of damn optimum
availability and utilisation of financial resource is required and this can be done through effective
negotiation with supplier of finance to the HG. The company has no formal guidelines for the
employees' lifestyle, they can solve this by maintaining the work life and by passing effective
guidelines a proper lifestyle can be followed by the employees.
HGE is hiring employees by the word of mouth that this restricted the conduct of people which
can be reduced and interviews can be taken in different ways as like personal interview,
according to the capability of employees ans their qualification selection for the interview are
within relatives which restricted the opportunities of other employees. HG can communicate
with other people also who deserves the job according to their skills. Hg was basically a paying
centre for everything and the payments sometimes are costly which can be reduced by
negotiating with the people and communicating them to utilise the resources optimally.
Employees with tribal rituals sometime leads to difficulty in organization and even some
employees are in contact with government officials for extortion process which sometime can be
difficult for the company.
Effective negotiation can help HGE to avoid this problem and make all employees work in
company's favour only.
The another issue faced by HGE is its organization has flat structure and is disorganised which
can be improved by effective communication with the employees, the organization can be made
organised and flat structure can be converted into the decentralised structure which help HGE to
work efficiently.
Turnover rate of employees is high which is another issue faced by HGE and this can be reduced
with offering incentives, job security and negotiation in salary of employees to retain them in
business (Reus-Smit, 2017).
Analyses Of National Culture
National culture means a set of norms, behaviour, beliefs and customs that are in population.
National culture is all about hoe value in the work place affect or influence the culture. As
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talking about HGE is constructing dam in Tanzania where there is different set people and
similarly there are different value, it usually represents independent preferences for one state of
affairs over another
There are six dimension of national culture are first is power distance index in these it
concentrates on the less powerful member of society and similarly by the help of these
dimension HGE can handle inequalities among people. In these help us to study that every body
has there place in the society and hence all of them treated as same in the working environment
(Miller, 2017). The second dimension is the individual versus collectivism in this individualism
define as loosely knit in which individual are expected to take care for themselves and their
family and it opposite collectivism represents a preference of tightly knit in which individual can
expect their relative or member to look after them. The third is uncertainty avoidance index, by
these dimension HGE will study the degree in which member of the society feel uncomfortable
and also HGE will work accordingly to eliminate this ambiguity. The forth is masculinity versus
femininity in these HGE will study the preference in society for achievement, heroism and
material reward and on the other femininity stands for preference for corporation and modesty
(Audretsch, Belitski and Korosteleva, 2019).
Recommendation Of Ethics And Corporate Social Responsibility
As HGE is not good in dealing with locals in general and the issue of employees turnover etc.
can be solved by following the theory of corporate social responsibility, this mean it is a business
model in which a company is responsible for the society they work in. it is the responsibility of
every organization to benefit the society.
As because of the society itself like company is able to work and run smoothly. HGE must take
care the needs and wants of the people living in society as the organization cannot be run without
satisfying the customers who are the most important asset of the organization. HGE must
contribute towards the society and environment ion which they are working it is their duty and
responsibility contributing towards society HG can benefited them, also as customers are the
king for their products and services. CSR is equally valuable foe company as well.
Turnover of employees is due to dissatisfaction among employees, which can be due to low pay,
insecure job and unhealthy working condition etc., this all issue should b solved by the company
so the employees quit to leave the organization and retain in business for long run.
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HGE should maintain an organised structure in decentralise so employees work efficiently as if
they are allotted with responsibility and jobs than they are free to work in effective way (Paulus,
van der Zee and Kenworthy, 2016).
3. Reflective report
From the Culture theories (Handy Cultural Theory and Harrison Cultural Theory), I learnt that
Adopting these theories, the power of decision making become strong. Flow of communication
between every persons involve in organization become effective which create understanding
between all people and create beautiful cross cultural environment in organization. Rule,
regulations and policy become more effective because of strong communication flow, people
understand them easily and effectively. These all make employees more productive and creative.
Also, organizational structure become more strong. There is no conflict between people involve
in organization. These all create good and peaceful cultural environment for employees at work-
place.
By going through the leadership theories (Situational theory and Path going theory), I understood
that leaders play an important role in organizations. They are an ideal for employees whom they
have to guide. Leaders are the one who decide the future of organization and employees too. If
leaders are good and respect cultures, employees will also become good and respect the cultures.
CONCLUSION
From the above study, it has been summarized that Organizational culture is one of the most
important aspect in organization. For overcoming the issues of Organizational cultures, there
should be coordination between every persons and departments of organization. Leadership also
should be effective and efficiency. Leaders should become an ideal for the employees.
Employees should be motivated and help organization to achieve their goals and objectives.
There should be open communication. Employers should negotiate with employees and don't
bias with them.
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REFERENCES
Books & Journals
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Frijns, B., Dodd, O. and Cimerova, H., 2016. The impact of cultural diversity in corporate boards
Gilson, S.F. and DePoy, E., 2015. Disability, identity, and cultural diversity. Review of
In Accommodating cultural diversity(pp. 11-24). Routledge.
In The Palgrave Handbook of Creativity and Culture Research. (pp. 57-76). Palgrave
Macmillan, London.
Jordan, P. and Shennan, S., 2016. Cultural transmission in indigenous California. In The
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Lambert, J., 2016. Cultural diversity as a mechanism for innovation: Workplace diversity and the
Miller, B.D., 2017. Cultural anthropology. Pearson.
Moon, R.J., 2016. Internationalisation without cultural diversity? Higher education in
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Paulus, P.B., van der Zee, K.I. and Kenworthy, J., 2016. Cultural diversity and team creativity.
pp.851-885.
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Reus-Smit,C., 2017. Cultural diversity and international order. International Organization.71(4).
Rice, M.F., 2015. Diversity and public administration. ME Sharpe.
Thomas, E., 2017. Globalisation, cultural diversity and teacher education. In Globalisation,
Tierney, S., 2016. Cultural diversity: normative theory and constitutional practice.
ONLINE
Handy's cultural theory. 2016. [ONLINE] available trough <https://hbr.org/2015/12/what-is-
disruptive-innovation>
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