Cultural compatibility - Essay Example

Cultural compatibility Executive summary Tesco is planning to merge with Tata towards forming a new business in India. This shows the impact of globalization and free markets as businesses and individuals interact across borders. The formation of such a business, however, necessitates cultural analysis in order to ensure the new business is compatible with the Indian culture in Maharashtra and Karnataka. This paper utilizes the Hoefstede’s five-dimensional approach and the GLOBE cultural analysis in analyzing the cultural compatibility of Tesco in India. In the end, it is discernible that India has a collectivist and hierarchical culture that necessitates central management. Tesco has to emphasize on language, warm interaction, and integrated management in appealing to India’s consumers, traders, and workforce. Tesco Introduction Globalization is a significant development of the world markets because of the implications that it imposes. These implications extend beyond economics and commerce because they involve cultural influences. Globalization creates an interconnected world whereby markets share ideas, revenue, and resources. Although the interconnectedness usually spring from economic incentives, it creates cultural implications to managers of multinational and international companies. International companies are a creation of the concept of free market that ensures that products are traded across borders. This creates an entity without boundaries whereby individuals from different countries interact freely. Cultures, however, are not homogenous. This affects management of international businesses because they have to deal with different cultures when interacting with employees, suppliers, customers. Context of cultural analysis It is essential to highlight of the different drivers for the merger between Tesco and Tata. To begin with, comparing nations is a fundamental way of understanding the world. In spite of the fact that nations are culturally different, some countries manifest more homogeneity in their cultures than other countries. Analysis of cultures deserves evaluation of the mini-cultures that make up the larger frames (Warner, M. 2013, 39). In this sense, it is unproductive to build general pictures of countries. In the analysis of cultural compatibility in India, the perception of cultures in the India’s towns is different from the perception of cultures in the rural areas. This is because rural areas harness a conservative streak that ensures cultures survive through generations (Hofstede, G.H. 2001, 34). The cultures in town, however, are more fluid due to the cosmopolitan settings that necessitate interactions between individuals of different ethnicities. All the same, general analysis of cultures is crucial in articulating a general approach to understanding a community. In spite of the mild differences that inform people’s attitudes, individuals will always draw towards a certain agreement about common issues. In the Tesco’s move, there will be a conflict between the Tesco’s management culture and the India’s culture. An organization must possess a culture that defines a general approach to issues. This creates responsibility among concerned parties. Similarly, a community must possess a definite culture that defines the identity of affected individual. Culture is an inherent characteristic of any setting because it informs how individuals approach issues. Changing a culture causes a change in the mode of thinking of the affected individuals. Hoefstede’s five-dimensional model Hofstede’s five-dimensional model of analyzing culture is crucial in evaluating the compatibility of Tesco with Tata. Tesco PLC is a multinational entity that deals with grocery and other types of Merchandise. The company has its beginning and headquarters in the UK, Europe. Jack Cohen, in 1919, established a chain of stalls that he later consolidated to form the first Tesco Company. Jack Cohen was so aggressive that he established 100 Tesco stores in the UK 20 years after the formation of the first stall. In turn, there seems to be a culture that Cohen instilled in his company. It is crucial to view the company as a Western cultural artifact because Europe is the embodiment of a typical Western culture. This culture has been shaped with key factors such as capitalism, industrialization, globalization, and wars. On the other hand, Maharashtra is a wealthy India’s state that entails a modernized economy. In spite of its major developments, the majority of the state’s population are Hindus. Karnataka is relatively less wealthy but it entails a large percentage of Hindus. It is crucial to highlight that India’s culture heavily intertwines with the most dominant religion, Hinduism. This spectacle repeats in most Eastern cultures. Unlike the Eastern culture, the Western culture had long emerged from the Victorian principles that articulated distinct ways of lives. Instead, over time, individuals have embraced personal definitions of cultures that do not necessarily build from religious views (Steenkamp, J. 2003, 108). Power distance In terms of power distance, Maharashtra and Karnataka may manifest a large value. The power distance concept recognizes that different societies accept a sense of inequality between people and parties. In this view, in as much as all societies are unequal, some accept a larger sense of power inequality among its people. In India, people thrive on the recognition of a distinct power that the rest of the individuals look up to for direction in a communal setting. In an organization, there would be a strong emphasis for hiercahy (Mutschink, J. 2007, 101). To begin with, the merger between Tesco and Tata will necessitate that one of the organizations takes a larger role than the other entity. Such a culture eases the work of an Indian native in an organization. Besides, it cultivates an authoritarian leadership and central management of affairs as decisions spring from the top management to the lowest cadre of employees. On the other hand, Tesco, as a Western cultural artifact may accept a low power distance. In such a relationship, the employees recognize a manager as a person who performs certain functions. This means that a manager’s work is perceived as essential as any duty in the same organization. In this view, the management makes decision through a decentralized system. This allows every employee to participate in the decision making of the company. A manager, therefore, facilitates decision-making rather than impose solutions towards the employees. It is crucial to underscore the fact that a Western organization is not strictly liberal as indicated by the arguments. Such an organization, however, will tend towards a liberal view of management. Collectivist and individualist perspectives . In terms of collectivist and individualist perspective of culture, India tends towards the collectivist culture. Tesco faces a cultural setting that recognizes individuals as belonging to given social groups. India has several communities that speak different languages. It is crucial to recognize the identities of such ethnicities as key to interacting with the individual. In such an organization, the management will make decisions that affect groups rather than individuals. This means that satisfaction of a group’s needs is viewed as an indicator to the satisfaction of the individual. It is fundamental to build strong relationships with local communities in forging effective business relationships. For instance, it would be essential for Tesco to forge friendships with the locals of Karnataka before establishing the hypermarkets. On the other hand, Tesco emerges from an individualistic culture that prioritizes the satisfaction of an individual’s needs as based on a unique identity. This promotes a strictly efficient relationship whereby tasks supersede the development of personal relationships. Such a context prioritizes the personal connection between members of the same hiercahy. In addition, it creates conflict in the assignment of responsibilities because in the Indian culture a group becomes accountable for a given set of duties. For instance, the management will have to direct human resource strategies towards departments rather than individuals. Masculine and feminine culture A masculine culture confronts the Tesco’s feminist culture. In a masculine culture, individuals accept hegemony between gender roles. In turn, men face the expectations of being assertive while women face the expectation of being nurturing. In such a society, individuals hold the management as distinctly a man’s place. It is crucial, however, to highlight that multicultural settings such as Maharashtra accept a more fluid perception of women. A Western cultural artifact such as Tesco is, however, not aggressively liberal about women’s roles. In the recent years, in Europe, there have been still more men than women in management positions. It is fundamental to note that a Masculine culture will emphasize on proper material rewards for jobs because acquisition of wealth is a highly regarded cultural ideal (Ahlstrom, D., & Bruton, G. D. 2010, 78). This perspective entails ambiguity in the sense it which it analyzes India’s culture. This is because in as much as India’s culture may highly regard competition, there is a strong tendency towards a moral order that constrains people from raw pursuit of wealth. In spite of the tendency towards ostentation, India’s high score on masculinity does not take into the account the fact that she is a highly spiritual country. Hinduism entails critical philosophies into the human condition and arguments on how to lead a quality life. Employees, for instance, would agree that paying managers a high amount of money constrain the growth of a company. Uncertainty avoidance In terms of uncertainty avoidance, India’s culture has a low score. In the lower end, the culture is more welcoming to unstructured scenarios and unintended consequences of making certain decisions. In an organizational set-up, a population possesses fewer rules and regulations for avoiding unexpected situations (Chhokar, J.S. 2007, 81). Unpleasant occurrences, therefore, may be accepted as fate as individuals believe they cannot control certain circumstances. This is a positive element because it helps an organizations weed out stressful situations from the company. In India, there is a positive attitude that encourages people to handle the most difficult situations. In addition, individuals easily adjust to difficult situations. This may possibly create a conflict with the Tesco’s Western culture of risk management. A pragmatic orientation means that people do not have to explain the complexities of life (Cowen, T. 2009, 86). Places such as India may encourage effort towards solving issues, rather than commitment of efforts towards managing uncertainties (Steenkamp, J. 2003, 187). It is crucial to note that this may accord a simplistic account of India’s culture because Hinduism entails a philosophical orientation that tends to explain the complexities of life. GLOBE analysis The cultural dimensions according to the GLOBE analysis reveal the same conflicts. GLOBE analysis eliminates the inconsistencies due to subjective outlook of Hoffstede’s evaluation of culture. In terms of assertiveness, India has a relatively lower score. It also manifests a higher score in institutional and group collectivism. The scores are similar in terms of power distance, human orientation, and performance orientation. GLOBE analysis classifies India’s culture as belonging to Southern Asia’s way of life. Such a culture embraces the principles of Hinduism and Buddhism. In turn, there is a significant notion of corporations being able to create both value and social justice systems (House, R., Javidan, M., Hanges, P., & Dorfman, P. 2003, 90). This will affect the Merger in profound ways. To begin with, Tesco will have to realize that every employee has a strong attachment to the family. The family’s perception of an employee plays a huge role in advancing one’s career. An individual works hard to place the family in a prestigious status (Merritt A. 2003, 89). This only adds value to the company if the employee attains attractive material rewards for one’s efforts. An employee, therefore, commits significant efforts towards one’s duties if increased efforts are subject to improved pay. In this sense, a highly motivating environment in the workplace will not necessarily encourage an employee towards better performance (Dahles, H., & Wels, H. 2002, 119). Such an employee will only thrive on an instilled pride that must precede the handling of one’s duties. Motivation of an employee within the organization is a complicated task because it involves ensuring a proper legacy for the employee. Most employees place a high value on welfare of the extended family and a person works because one wants a sound future for subsequent generations (Chun-ho Tu, M. 2006, 13). Tesco has to build a successful brand that ensures employees are proud of working in the company. Conclusion In as much there are notable conflicts that may hinder the compatibility of cultures in the Tesco’s move, there are strategies of handling the situation. Tesco faces a collectivist culture that may necessitate the formation of robust departments in the company. For the time being, it may have specialists from the UK who will participate in the integration of the company in the India’s cultural set-up. As the organization grows, it would be crucial to have native employees who understand the Karnataka and Maharashtra’s cultural attitudes (Ashkanasy, N.M. 2002, 32). Ongoing changes, however, have weakened the caste system and liberalized the India’s economy. In turn, Tesco might face a less conflicting culture in the workplace. The preference towards hiercahy may necessitate the establishment of robust management levels and departments that enable centralized control of affairs. Recommendations The organization of the company will have to involve a mix of collectivist culture and individualistic norms. Working in a foreign country necessitates that the organization employs a considerable number of Indians as employees. 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