Cross-Cultural Management Case Study: The Tanzania Project Dilemma

This case study examines the challenges faced by a US-based company, Hydro Generation (HG), in its dam project in Tanzania. The central issue revolves around the manager, Brett Jones, and his adaptation to Tanzanian business practices, some of which raise concerns about ethical conduct and potential corruption. The case presents a dilemma for the vice president, Graham Steinberg, who must decide whether to retain Jones for the project's operational phase. The analysis explores cross-cultural management issues, including the impact of corruption on economic development and foreign investment. The assignment requires the application of management theories, such as Hofstede's cultural dimensions, to understand the implications of Jones's actions and the importance of ethical leadership. The provided solution highlights the interplay of cultural norms, values, and the potential for unethical behavior in a global business context. The case study also touches upon the dimensions of indulgence vs. restraint, uncertainty avoidance, and the use of power distance index in evaluating the effectiveness of management practices. The solution provides a comprehensive overview of the challenges and potential solutions for navigating cross-cultural management issues.

Running head- MANAGEMENT
Cross cultural management- A case study of Tanzania
Name of the student
Name of the university
Author note

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Corruption is one of the potential issues in the management at the national and
international level. According to the economists, indicators of corruption lie in the GDP per
capita, government expenditure and the foreign assistance (Anand, Rajagoplan and Guerber
2016). The immediate outcome of corruption are delay in the economic development,
international trade and investment. These issues adversely affect the economic growth of a
country. According to the research, it has been reflected that the high corruption directly
affects the foreign direct investment, simultaneously affecting the economic success of the
country. As a result of this, both the private and the public spheres encounter lack of
confidence towards executing the activities in an efficient and effective manner.
Globalization has assisted the managers to predict the rates of corruption. However,
López‐Duarte et al. (2016) opines that the difficulties still persist in the efforts towards
corruption. This is in terms of the multi-faceted nature of societies and the phenomenon,
which govern the social structure. Cultural norms and values contradict the aspect of
corruption. However, disobedience to the cultural norms and indulgence in the corruption
activities degrade the pride of the country. Aligning it with the workplace context, if the
managers indulge in these activities, it is a shameful act, if the reputation of the country is
considered. In this context, Nam (2018) states that the dimension of indulgence vs restraint
can be applied. The mindset of the managers changes according to the workplace scenario.
The new manager, who has visited Tanzania for communicating with the locals regarding
establishment of the dam and plant, needs to be ethical in his approach. On the contrary,
Beugelsdijk et al. (2015) is of the view that if he uses the uncertainty avoidance index is
used by the new manager, it would be productive in terms of averting the illegal instances. If
he is conscious towards adopting the elements of the ethical code of conduct, then he would
be able to exert the provided power and authority as per the requirements.

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Conducting participative leadership style reflects the incorporation of collective
approach towards executing the tasks. Gender equity relates to the dimension of masculinity
vs. femininity, diversifying the workforce. Liberal approach towards the needs of the
employees adds to the dimension of indulgence (Kong and Volkema 2016). This relates with
the dimension of individualism vs collectivism, as proposed by Hofestede. Along with this, it
can also be collaborated with the dimension of power distance. Lanier and Kirchner (2018)
argues that measuring the effectiveness and feasibility of the exposed performance would
reflect the use of power distance index.

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Bibliography
Anand, V., Rajagoplan, A. and Guerber, A., 2016. The influence of national culture on the
rationalization of corruption. In Crime and Corruption in Organizations (pp. 163-180).
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Beugelsdijk, S., Maseland, R. and Van Hoorn, A., 2015. Are Scores on H ofstede's
Dimensions of National Culture Stable over Time? A Cohort Analysis. Global Strategy
Journal, 5(3), pp.223-240.
Kong, D.T. and Volkema, R., 2016. Cultural endorsement of broad leadership prototypes and
wealth as predictors of corruption. Social Indicators Research, 127(1), pp.139-152.
Lanier, C. and Kirchner, M., 2018. Corruption and Culture: Empirical Analyses of Long-
Term Indulgence and Corrupt Systems. Review of Business, 38(2).
López‐Duarte, C., Vidal‐Suárez, M. M., & González‐Díaz, B. (2016). International business
and national culture: a literature review and research agenda. International Journal of
Management Reviews, 18(4), 397-416.
Nam, T., 2018. Examining the anti-corruption effect of e-government and the moderating
effect of national culture: A cross-country study. Government Information Quarterly, 35(2),
pp.273-282.