BUS5001 Managing Across Cultures: Strategies for Global Teams

This report provides a comprehensive analysis of cross-cultural management, emphasizing the significance of understanding cultural nuances in international business environments. It examines the implications of global concepts for managing virtual teams, addressing key issues in leadership, communication, negotiation, and motivation. The report explores the impact of workforce diversity, organizational behavior, and techniques for managing cross-cultural teams to achieve high performance. It further assesses the importance of adapting to changing business contexts and identifies cultural differences affecting organizational relationships and decision-making. The analysis incorporates frameworks like PESTLE and Hofstede's model to evaluate internal and external business environments, highlighting the challenges and opportunities presented by cultural diversity in the workplace. The report concludes by emphasizing the need for managers to appreciate cultural differences to enhance interpersonal effectiveness and achieve organizational goals in a global setting. Desklib offers a wealth of resources including solved assignments and past papers for students.

MANAGING ACROSS CULTURES

Contents
Introduction...........................................................................................................................................3
Key issues affecting leadership............................................................................................................11
Key issues affecting communication....................................................................................................12
Key issues affecting negotiation..........................................................................................................13
Key issues that may affect motivation.................................................................................................14
Conclusion...........................................................................................................................................14
References...........................................................................................................................................16

Introduction
This report brings out a discussion on cross- cultural management. This report carries out the
discussion on the importance and relevance of understanding both national and international
in relation to international management. This has analysed that implications of understanding
the global concepts to support and manage the virtual team in relation to international
environment. This report has explored other concepts such as leadership, communication,
negotiation, motivation, and decision-making and how it further deal with the cross-cultural
environment (Weber, 2018).
In order to understand the management across the cultures, this report has described the
concept of cross-cultural management by related it to business environment. It includes the
management of teams in such a way that it considers preferences, differences in culture, and
practises in relation to global context. Business environment is analysed with the help of
framework to analyse how operations of an international organisation differs from the local
organisation (Hong, and Yu, 2018).
Workforce diversity can be both benefit as well as disadvantage for the organisation as it can
bring innovation and creativity in the work performed and even can spoil the working
environment due to conflicts. The report has identified the relevance of cultural issues of
organisational behaviour and management (Weber, 2018).
Further, this report has carried a considerable assessment of techniques in order to manage
the cross-cultural teams to attain high performance. Apart from this, it has also demonstrated
the flexibility in the changing business contexts because of dynamic business environment.
Finally, it has found some key issues relating to cultural differences that affect the leadership,
motivation, negotiation, organisational relationships, and decision-making (Hong, and Yu,
2018).

Cross-cultural management comprises of managing the work teams in such a way, which
reflects difference in culture, preferences, and practises of a consumer in a global context.
Several organisations will have to learn to change or adapt the approach so that it can
complete on such a level where physical boundaries with online interactions in more common
while conducting business. In order to widen the market share, companies undertake
expansion strategy where the role of intercultural interaction have increased so that the
organisation can have much access to international market enabled with new technology
(References, 2019). Some of the important topics involved in the significance of culture
under International business management are the dimension of culture, managing
comparative international business, enabling proper communication skills across different
cultures, social responsibility, cross cultural negotiation skills, leadership styles and decision
making in regards to developing international manager of an organisation who serves
globally (Groves, Feyerherm, and Gu, 2015). In order to appreciate and manage the
contemporary business across the cultures, it is significant to understand the business
situation in which the company actually operates (Moore, 2015). No business can remain
stable even if it operates at a small level because every business is affected by macro business
environment that can either immune development and lower it in the globally integrated
world. According to first learning outcome of Lesson-1, examination of business
environment will be conducted in the light of micro and macro environment (Bird, and
Mendenhall, 2016). The microenvironment considers workforce as it has been increasing in
the subsidiarily- owned or wholly owned manner across several geographical location in the
world. This is due to when companies want to have closure look in the internal factors
because they wants to enjoy expertise and low cost production across the world in form of
global centres of the organisation. Microenvironment refers to business situation where the
firm is in the direct contact with the business organisation that ultimately affect the routine

actions of the business. Some of the model of evaluating the internal or micro business
environment can be VRIO analysis and SWOT analysis (Bird, and Mendenhall, 2016).
Further, external or macro environment is a general business environment that influences the
company in such a way that it has to form new policies and procedure In order to adopt the
changes. It influences the performance of the organisation, strategy of the other business
groups and decision-making as the external business environment is very dynamic (Bird, and
Mendenhall, 2016). Some of the techniques, which is implied to evaluate the external
environment such as Pestle analysis i.e. political, population, legal and political,
environmental, economic factors, social and demographics, income distribution, family
structure, inflation, GDP, ethnic mix, population distribution, political stability, and duties
and tax. Micro and macro environment covers the overall environment of the organisation
whether it is affected by domestic as well as international business environment (Surbhi,
2015).
Culture is strong part of people`s lives because it affects their values, fear, loyalties, fears,
worries, and hopes. In domestic market, understanding culture is important, as workplace
needs building of relationships to work effectively because the workforce is diversified. Like
the same way, dealing in international business needs good understanding of distinct cultures
(Moore, 2015). A manager has to take into consideration several cultural issues in the
organisation in order to ensure effectiveness. As organisations start expanding over the
borders, global marketplace becomes easily accessible and it brings more opportunities in
order to work internationally. Cross-cultural and multinational teams have become more clear
which means the business will be benefited from increasing diversified knowledge base that
direct insightful approach to the business problems. Culture disturbs the international
business in core areas such as etiquettes, communication, and organisational hierarchy
(Moore, 2015).

There are certain challenges faced by management and organisational behaviour in relation to
difference in cultures. Managerial challenges are-
Workforce diversity- organisations have been growing cosmopolitan and becoming more
heterogeneous in terms of race, ethnicity, and gender. A manager should treat each employee
with respect in order to recognise the differences and respond to these differences in such a
way that it should ensure greater productivity and employee retention. Increasing diversified
workforce offers both opportunities and challenges for the firms (Rizwan et al., 2016). This
diversification can become a competitive advantage in many ways such as it improves
decision-making and group performances on tough tasks. A varied workforce is necessary to
provide considerable customer services in the market. Workforce diversification brings new
challenges in regards to communication, dysfunctional conflict, and team dynamics. If
manager does not treat diversity then it will lead to high employee turnover, interpersonal
conflicts, and difficult communication (Stahl, Miska, Lee, and Luque, 2017).
Changing demographics of workforce- with the growing number of youngsters entering
workforce who have new ways of thinking and encourages innovation (Peretz, Levi, and
Fried, 2015).
Organisations culture is defined as beliefs, ideologies, and practise of the organisation that
can make it different from other organisations. Hostede Model undertakes regional, national,
and international issues that donate to the culture of firm that eventually affect the nature of
the employees. Five important factors that affect the culture of workplace are Power distance,
Masculinity v/s feminity, individualism, long-term orientation, and uncertainty Avoidance
index (Caleon et al., 2015). For instance- when power is distributed equally among all the
related designations and each individual are not considered on the basis of level of hierarchy
that enjoy equal rights and benefits. On the other hand, organisation-B enjoy special

treatment from the team leaders and management, which have substitute more responsibilities
when as compared to team members (Meulenaere, Boone, and Buyl, 2016). In some
organisations, each employee is responsible for his performance. Each employee gets equal
opportunity from management and they has to earn ownership of their own work (Caleon et
al., 2015). Other factor include the impact of masculinity and feminity on the culture of the
organisation. Further long-term orientation focus on building long-term relationship between
the workforces. Companies often employ females for their counterparts will different
policies where women has the main role in making decision-making. On the other hand, male
employees are aggressive when as compared to female`s nature that care and have soft heart.
For example- female employees are never hired for frequent travelling (De Meulenaere,
Boone, and Buyl, 2016). Almost every organisation rely on teamwork. Individualism
considers that people with common interest can come together and work in a team. Some
firms may believe that output will be more when people exchange their innovative ideas.
Under improbability, Avoidance index refers to culture where the workers know how to
respond to dynamic and unexpected conditions (Venaik, and Brewer, 2016).
International managers misunderstand cultural differences and underestimate their
importance in workplace behaviour, which reduces the interpersonal effectiveness in cross-
cultural contexts. Individualistic cultures of US and other northern European countries were
at the front of capitalist development and industrialisation. MNCs are paid little heed to
understand cultural differences in their place of operations. Certainly, organisations have
realised that they need to look beyond their cultures and appreciate profound differences in
the world that affect the organisational behaviour.
In order to access the impact of techniques and manage cross-cultural teams to achieve high
performance, techniques are time management and multitasking, 360-degree leadership,
decision-making models, negotiation skills, conflict management, and effective team

meetings. In current era, cross-cultural teams are present in almost every organisations
whether it is host country or the overseas locations (Hussein, Kraten, Seow, and Tam, 2017).
High-performance companies encourage diverse empowering teams. The teams are made up
of individuals that are diverse in functional discipline, knowledge and skills that could exist
in culture (Tan, and Miksza, 2018). Diversified empowered teams are always high
performing and functioning and they are creative and innovative too with problem solving
approaches. Managing cross-cultural teams can be very challenging and it requires exemplary
leadership that focus on building trust-based relationship and finally promotes safety for
every team member (Tan, and Miksza, 2018). Few factors that define the behaviours of
leaders who generally induces the team members to be high-performing team such as team
leader who motivate more than they even drive. High-performance teams is not the result of
pushing but it is more of pulling by creating energy and enthusiasm in team. Team members
can feel motivated as they are on mission of achieving incredible organisational performance.
Further, conflict management is a function used by team leaders in order to resolve fights and
increase support. Conflict can break the teams apart and leaders need to focus and work on
resolving differences quickly and promoting cooperation (Goetz, and Patz, 2017). Team
leaders deal with high level of maturity in high-performance teams so that the problem can be
addressed directly and quickly. Team leaders knows very well how to stretch the goals in
such a way that an internal drive in the team can accomplish the impossible goals. Performing
an extraordinary action to achieve the organisational goals can lead to appraisals. In some of
the worst cases of failure of cross-cultural understandings can lead to cancellation of
promised mergers and businesses. To achieve high performance, it is important to understand
that different people communicate with different cultural styles. For example- An
organisation existing in US, UK and Australia are more direct as communication is précised,
open and emotional influenced by low-context cultures. On the other hand, organisations

existing in India, Japan and China are subtler as these imply with the information provided
that is known as “high-context culture.” (Murray, Skene, and Haynes, 2017).
It is important to consider that how quickly employees adapt with the changing organisational
context especially to the international management. As international management needs
deeper understanding of how people from different cultures adapt with the changing business
environment. National culture has significant role in affecting the workplace culture and it in
the world should emphasis on diversity at the workplace culturally. It is critical for the
expatriate manager to not only understand the language by also world for the changings in the
nature of how business works in a dynamic nature. Before inducing them or employees to
work in a different environment, a manager should clearly define the change and coordinate
them with business goals (Li, and Mahadevan, 2017). A manager should determine the
impact of future actions. Manager should make an effective communication plan, effective
training can help the employees to implement the strong support structures, and finally
measure the change process. A manager acknowledge the past properly and involve people in
the process because it realises performing with the past actions are not fruitful anymore.
During the change process, three people types of people plays an people and come into
charge- strong resisters, eager embracers and middle majority people. A manager can
conduct a documentary sore of teachings for the employees regarding the change and how
will it improve business with best possibilities (Flatten, Adams, and Brettel, 2015). It is
important to consider that a leader is one to one who can drive the personality of the people
and understand their pattern of Woking in the team it includes job security and a sense of
belongingness. The manager should enhance the effective communication for the
organisation`s success where the risk of the manager`s information is at the loss of transition.
For example- English is san factor knowledge of the organisation but it is more important
whether the language conveys the clear and concise message. What is more important at the

workplace in the culture adopted are firm handshake, kiss on the cheek, and direct eye
contact that can be both offensive and a sign of professional interactions. While looking at the
cross-cultural communication, it remains a challenge to approach cultural differences with
openness, sensitivity, and curiosity that can help the employees to remain at ease (Flatten,
Adams, and Brettel, 2015).
Several international organisations do not have their workforce at their workplaces; they
work from different parts of the world. Global organisations often engage virtual teams as the
key stakeholders from several other countries (Knights, and Omanović, 2016). Virtual teams
are formed where the stakeholders are not located physically at the workplace but operate
through internet connectivity. In adequate consideration can lead to failures and troubled
projects. Some of the key successful factors that virtual teams are described as conduct in
IBM technology division and its association with the partners in the field of semiconductor
production and chip engineering. The extended team includes customers, contractors, team
members, and sponsors. Project management is executed in high matrixed environment
(Knights, and Omanović, 2016). There are several challenges faced by the organisation while
engaging virtual teams in its operations such as employees are not able to build a sense of
trust among each other, as there was no social interaction between them. Virtual teams
provide business a wide array of benefits that range from reduced cost, time spent for
travelling, quick response to organisational goals and business goals. Virtual teams is an easy
approach to concentrate the talents and pool them together through a common platform to
benefit the organisation. They assist the organisation to collaborate on issues and certain
challenges at the international level with business ability. It strongly rely on good efficient
communication platform and rely on a great deal on good ICT (information and
communication technology). The main challenges related to existence of virtual teams in the
business operations are cultural differences, software collaboration, team cohesion, and

environment challenges. Other challenge faced by the project manager is when it manages the
general virtual teams and, management is related to environmental issues to geographical
distribution. Before hiring and leading a virtual team, a leader has to consider some factors
such as assignment of tasks should be easily accessible, awareness, communication rules,
recognising the success, skill sourcing, technology plumbing, and the personality. The
company uses virtual teams because it saves the increasing cost of physical in-house teams,
enhance the quality by tapping huge talent form different geographical areas (Steers, and
Runde, 2017). On a beneficial side, a global virtual team act as a cross-cultural training
instrument that could help the company to develop the global competency as global teams
provide development of a leader. In order to manage the virtual teams, the organisation often
carry out Hofstede dimension and other cultural theories that affect the operations of the
organisation. These dimension allow the organisation to analyse the country`s culture that
company follows while treating its workforce (Steers, and Runde, 2017).
Key issues affecting leadership
Undoubtedly, human is a vital resource of any business and MNCs are nowhere exception to
this. While operating in number of countries, there should be a level of consistency in order
to manage people. Acknowledging the country variation is because of differences in law of
employment (Bird, and Mendenhall, 2016). With the increasing globalisation of business
environment, it is important for the international manager to understand how they will
manage across different cultures. International manager need to set a direction with sound
understanding of global perspective and interest of various other stakeholders and then make
local strategies, which finally align with the goals of the organisation. It should be capable
enough to affect both internal and external environment of the organisation by achieving the
corporate goals. This demands the engagement of certain theories to manage the
organisations such as leadership, motivation, decision making and negotiation skills

(Goodenough, Wall, and Merriman, 2018). On the basis of suggestion for the global leaders
while respecting other cultures and fulfilling cultural gaps. Cross-cultural leadership is a
leader who implements the organisation created by the staff of diverse nationalities, altered
cultural backgrounds, and different values to guide the behaviour (Brett, and Thompson,
2016). It brings out an understanding of cultural changes and cultural exchanges where the
cross-cultural leadership adapts with new wave of globalisation and services in the world
(Vogel et al., 2015). For example- in the procedure of internationalisation of Japanese
organisations, it has been observed that it is difficult to tune with the Japan`s traditional
values. Whereas, in India and Nigeria, the concept of leadership is complex and the
assessment shows the variety of leadership performance and its leadership structure (Ralston,
Russell, and Egri, 2018). As globalisation has been increasing, the business must reflect
cultural differences, economic limits may come down, cultural barriers may go up, and
finally awarding new opportunities and challenges for the cross-cultural leadership (Vogel et
al., 2015). The main challenge in cross-cultural leadership is due to its diverse workforce.
Different national cultures plays a vital role in the success of active leadership in the
international business. It is important to address the cultural diversity especially where major
barriers is for each member of each cultural group to progress the full understanding of cross-
cultural leadership.
The other issues generating area that exists in different nation`s culture is the way of
communication between the employee and the leader which is totally different. For instance-
leaders in US are direct and put their points by error facing on you directly but the Japanese
leaders are inclined to indicate through notes. If the leader is not acquaint with culture and
leadership style in that particular country, it will lead to conflicts and problems.

Key issues affecting communication
Changes in culture affects the communication in many ways. For example- members of
definite cultures are likely to practice indirection as compared to members of other cultures.
Japan is famous for being indirect in its communication whereas Americans are direct. The
complete misunderstanding of what is being said happens when Americans do not use the
same level of indirection, which the Japanese people uses (Kovarik, Boyce, and Thomson,
2018). Use of indirection is a part of more general style of communicating which is known as
“high context.” Different culture varies on the basis of degree to which they can use high
context and low framework communication. Another example- American`s direct style of
communication is often seen as rude and disrespectful by the Asians. In the same way,
Japanese unwilling to say “no” or deny can be seen by the Americans as dishonest and shifty
(Kovarik, Boyce, and Thomson, 2018). Cross-cultural communication is not only about
language. With 185 countries in the world, it is understood that they are various cultures and
language too. In order to get the things done for multilateral diplomacy participants that is
needed to build trust to reach huge consensus (Costello, Homberg, and Secchi, 2017).
Understanding the cultural diversity can bring certain communication barriers. Effective
communication is only about having a right attitude. Adapting your own style can be useful
to transmit the message is an important way which can make huge difference in operating the
doors. A rigid non-verbal behavioural communication or just being judgemental all the time
can hamper the performance of the employee and it will hamper the efforts in building trust
that can stop them to operate on a common ground. International business needs leaders who
are capable enough of handling the group, adapt, and adjust with the communication in
different environment in order to get successful.

Key issues affecting negotiation
Cross-cultural negotiation is an interaction typically in business that occur between various
cultures. This type of negotiation occur between two different nations and different cultures
in the same country such as Native Americans and European Americans (Neuliep, and
Johnson, 2016). As the world have become interdependent in regards to expansion of
international business relations and globalisation, common features in business, and political
transactions, this brings out the understanding of cross cultural negotiations occur that is an
important skill to have. When preparing cross-cultural communication in business
negotiations, the company do think of counterpart`s culture that affect for what they say
(Neuliep, and Johnson, 2016). The effectiveness of the communication with negotiation
counterpart can have stronger impact on the results of cross-cultural negotiations as compared
to same culture negotiation. For example- looking at the quality of communication, which
Chinese and American people have experienced due to negotiation simulation. The result that
have showered for the pair of negotiators from other different cultures that had lower quality
communication that have consequently reached at the worse outcomes as compared to pair of
same cultures (Beugelsdijk, and Welzel, 2018).
Key issues that may affect motivation
Many cross-cultural issues affect the motivation among the employees, such as different
groups join the organisation with different abilities, attitudes, skills, and different needs of
expectation. This difference is due to the diversity of jobs and diversity of performers. It is
seen that where men needs autonomy, a women is more interested in learning, opportunity to
learn and flexible timings (Kundu, and Mor, 2017) People wants to work from home and
telecommunicating had made it possible. Job sharing has become more popular among those
people who do not want to work for the full time services. Other issues are related to
recognition programmes differs from country to country. Sometimes, employees need

recognition for their work performance whereas, other employees incentives in terms of
financial rewards. With intense competition for greater market share, companies have opted
for fixed pay and also the payment related to performance (Kundu, and Mor, 2017).
Conclusion
From the above discussion on cross-cultural management, it has be analysed that running an
international organisation is highly affected by cross-cultural management. Motivation,
leadership, decision-making, and business negotiation has been affected by the different
country`s culture. Under current international background, every enterprise wants to hire
more employees form different countries. It is a common approach for recruitment in the
international organisation. Employees belonging to different cultural backgrounds often have
different understanding and perception about leadership and management. In order to
enhance effectiveness of business management, organisation face several challenges due to
cultural differences in HRM. This report has analysed the concept of virtual teams in the light
of cultural theories and Hofstede dimension. As these dimensions, divide the organisational
culture into five dimensions such as power distance, masculinity, and femininity, short-term
orientation, and long-term orientation. Sometimes workforce diversification can provide an
opportunity to grow and on the other hand sometimes it can become a risk to the existence of
the organisation or getting any sort of financial success.

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