Developing Cross-Cultural Capabilities - Essay Example

Developing Cross-Cultural Capabilities The report is from the head of the Human resource. The research aims at developing cross-cultural capability in her firm. The report will cover various theoretical explorations to identify the potential opportunities and challenges. Development of these theoretical explorations will involve confirmation of the variety of literature. Additionally, the report shall develop a model for employees working in foreign countries. It will assist them during their operations and foster their cultural understanding. The report aims at underpinning key activities that will assist the business to discover potential opportunities internationally. Such activities include identifying barriers, issues in international markets, and areas of development. Contents 1. Introduction Globalization is a tool that has influenced the change of the current business systems. According to experts, globalization is very essential for any business to grow. It requires the business leaders to understand the various aspects of globalization. Understanding of cross-cultural dynamics is an example of these aspects. The researcher of this paper expects the top leadership of the organization to lay down global expansion strategy. For this company to enjoy success globally, it has to nurture the employees’ cross-cultural capabilities. The company is in the UK and the researcher understands in-depth the British culture. It is the wish of the company to open markets in the UK, Nigeria, and China. The researcher has to study the cultures of these countries to avoid the challenges in those markets. There are many opportunities that will arise after the opening markets in these countries. It will result in the business attracting more customers, good structuring of teams, social integration, and improvement of individual outcome. The researcher has encountered challenges of implementing these expansion strategies are the difference in communication styles and the variety of cultural patterns. The report is going to assist the organization in developing cross-cultural capabilities that will see the organization benefit from international business, especially in China, Nigeria, and Brazil. 2. Theoretical exploration There are the variety of cultural dimensions in UK, Brazil, China, and Nigeria. A study by [Ste05] indicates how understanding the cultural dimensions are important for a business to go global. According to Hofstede, the five cultural dimensions are individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, power distance, and long term versus short term orientation. The researcher discovered that the organization had not laid down global expansion strategies. It would be very challenging for the company to open businesses in Nigeria, China, and Brazil. The above cultural dimensions will be useful for the company. It will help the researcher to create both challenges and opportunities in these countries. Masculinity versus femininity According to cultural experts, a society which the male characteristics are tough and competitive is a masculine in nature. According to UK sociologist, people in the country believe in personal achievement. It is the reason why the researcher emphasizes on people to believe in what they can do. It is the researcher's wish for the employees in the HR department to base on their worth accordingly. The UK's culture values on performance no matter the position in the organization. That is a characteristic of a masculine society. In a feminine society, the people care for personal values. A specific study on China found out the Chinese have a great empathy towards other people. Additionally, Nigerians care more about the quality of life. Such cases describe well the feminine culture. It is a common trait within the UK for the people to control their emotions. According to cultural studies, the UK people are neutral[WLJ09]. The studies indicated how reasoning controls most of the Britons actions. In the researcher’s own study, the researcher realized most of the Britons do not reveal what they are thinking. They do not clearly indicate what they are feeling. They value masculinity. The Brazilian and Nigerian culture shows great differences in the above characteristics. In the two countries, people want to express their own emotions. The people often show their emotions, especially in Brazil. They value femininity. Uncertainty avoidance It is the way particular societies avoid unexpected problems. Additionally, it is the tendency of a particular group of people to feel uncomfortable while facing some unstructured problems. For example, studies indicate that Britons tend to easily accept new products. They do not require much time to gather information about the new products. In a previous discussion, the researcher found out Brazil is leading in levels of uncertainty avoidance, followed by China, then Nigeria is the least. Power distance It is the degree of inequality that exists in particular cultures. The society is comfortable with the inequality that exists. A higher power distance score indicates a particular society accepts unequal distribution of power. A specific study on Brazil culture and Chinese culture indicated the Brazilians favor unequal distribution of power and people understand. The Nigerian culture has a lower power distance score but a little higher than the UK’s. The Britons view themselves as equals. Additionally, In the Brazilian, Nigerian and Brazilian cultures, the employees believe that they should be valued for who they are. The cultures in these countries value a lot of power and title. They believe the titles and powers define their behavior. Individualism A research by [Ste05] discussed how UK's culture favors personal freedom and achievement. Most of the Britons do not care about collective interest. The researcher often encourages the employees in the HR department to make personal decisions. The researcher was aware an individualist culture allows its people to take care of themselves. Things are different in the Brazilian, Nigerian and Chinese cultures. Experts in culture categorize those countries as a collectivist society[Olu12]. Additionally, people in these countries believe in groups. They value groups more than individuals. An employee in those countries would find safety in groups. They just have to exchange the safety with loyalty. The people are born understanding the group always comes before the individual. Long-term orientation According to studies, the long-term orientation refers to how much a society values traditions and values. For example, Hofstede found out the Chinese acted differently from western cultures. Countries that accommodate long-term orientation experience its citizens delivering on social obligations. Additionally, they avoid ‘loss of face.' The researcher allows for a specific way of focusing on how far people in the HR department can get involved. The researcher always encourages the junior employees to keep their personal lives and work completely different. In the researcher's marketing class in the University of London, the researcher understood the importance of keeping the personal life and work separately. The researcher came to understand to remain competitive in the UK's markets; the researcher should ensure the company's relationships with outside parties should not have much impact on the company's objectives. In UK's culture, people believe good relationships are important but it is not a must for people to work. The researcher did a recent study about the cultures of China and Brazil. The researcher discovered people in these two countries overlap their work and personal life. Their culture is diffuse in nature according to a study by[Tim08]. A specific study of the Chinese culture found out the business persons in the country value relationships more than business objectives[Tim08]. China and Brazil partially share these characteristics. An employee attached to the Brazilian branch found out his colleagues spends time outside work hours with colleagues and clients. Opportunities and challenges There are varieties of opportunities while managing businesses in a cross-cultural manner. For example, there will be the growth of cooperation between companies in different countries. A study by [Bjø09] indicated how cooperation will result to increase in business operations thereby increase in communication across cultures. There will be the improvement of means of communication in the world. According to various literature reviews about culture, culture and communication are inseparable[Ade12]. The cross-cultural management will ensure cultures understand each other's communication styles Additionally, there will be increased production. A business leader operating a business in a cross-cultural manner will acquire more leadership skills and he will be competent according to [Fes09]. They will have the capability to run the business through different cultural barriers. Additionally, the skills will enable the business leaders to make strategic decisions[ANa06]. The strategies will cover various cultural aspects and will result in the growth of businesses. Managing a cross-cultural business would demand a business leader to be conversant with more leadership skills according to a study by [Tim08]. It applies especially to global managers. They have to adjust their leadership skills to match the cultural requirements of a given country. Adjusting of the skills will equip more the global leaders[Tim08]. Furthermore, studies indicate how going global is advantageous to the business. To experience success in the global markets, the businesses have to train its employees on cross-cultural issues[ANa06]. The training will assist to address the macro and micro uncertainties in the global environment. Another opportunity is that companies that open their business in developed economies would acquire strategic knowledge according to a study by Mitchell. The organizations’ employees in developed foreign countries would be equipped with strategies that aid development and expansion[Cha08]. Economists state that managing businesses in a cross-cultural manner could lead to the free trade. The free trade would result in increased financial flows. The countries that practice in trade will experience growth in the economy. There will be the redistribution of capital and the poverty levels shall reduce. The challenges of managing the business in a cross-cultural manner are often tied to the opportunities. A study by (Abbe, 2009) indicates how business managers who fail to lead the business in a cross-cultural manner often experience the lack of trust from the employees. The employees would be through the same rules in different countries. The employees would then develop the bad attitude towards the management. It would be a challenge for the management to adjust their leadership styles to different cultures[Bia10]. Another challenge is figuring out why people behave differently than expected. The managers are used to managing people with similar norms; however, the business going international will require them to experience other people across the world[Pau02]. A manager that has to lead a business in another culture will find it difficult to understand other cultures. 3. Previously discussed opportunities The previously discussed opportunities fit well into the researcher’s organization’s system. The organization has an ambition of creating a global brand name. The researcher in her own study found that for a business to go international, it has to accumulate enough capital to invest in foreign countries. However, the literature indicated differently. It said in creating a global brand name, the organization has developed the best cross-cultural capability. According to a study by Moran, the top management has a role in ensuring the organization has diversified its system to cope with cross-cultural issues[Gwe10]. The top management in the researcher’s organization emphasizes on diversity management. A study by Merrier discussed how diversity management is crucial for building cross-cultural capabilities. The study further indicates how the top managers have a role in devising global business strategies[Mer07]. The strategies will be useful in managing organization’s interactions with business partners, distributors, and the customers. It requires the business to understand different cultural environments. Opportunities available in Brazil, Nigeria, and China demand the human resource department to facilitate cross-cultural interactions. The interactions require the employees to acquire the cross-cultural skill. Such skills require the existence of organizational cultures that value diversity and global expansion. In the researcher’s organization, the organizational culture facilitates internal promotion and external recruitment. Additionally, the researcher’s organization often recruits external employees with strong cross-cultural capabilities. A study by Johnson indicates how a culture that facilitates global expansion creates a homogeneous top management team. Such top management ensures organizations navigate through various cultural complexities. The navigation ensures the researcher’s organization enjoys success in the global markets. It will see the organization expand and it will be more receptive to advice[WLJ09]. Organizations aim at creating a working environment that has a focus on a specific organizational culture. Such case will require the top management in collaboration with the HR department to fully engage in developing cross-cultural capabilities. For example, it would engage employees working in Brazil and China in learning new languages. The organization wants to achieve this aim by developing initiatives that will secure the required financial resources and organizational efficiency. An efficient organization is credible to engage its top management in developing cross-cultural capabilities. A study by Moran indicates how building cross-cultural capabilities are important for employees posted to work overseas[Gwe10]. They will find an easy way to market the products and actively interact with the customers. A literature review by Thompson indicates how it is important for a business to require knowledge about organizational diversity[Pau02]. It will assist the business to form a particular diversity management practice that will harness the diverse capabilities present within an organization. It is evident the researcher’s organization lacks the necessary tools to mobilize the existing cross-cultural capabilities. The organization is not in the position to build new cross-cultural capabilities because the top management and the employees lack the basic knowledge about the current state of the workforce. Furthermore, development of cross-cultural capability will see the organization promoting social integration and cohesion. Creating an environment that embraces social integration and cohesion requires the top management to incorporate ‘openness to difference’ in its system. The environment will result to the employees of the organization interacting productively. It requires the human resource department of the organization to promote the diverse array of the idea from the employees. The ideas and perspectives from the employees will make it easy to solve problems and promote internal discussions. In the end, the organization will experience social integration and cohesion within its environment. 4. Conclusion Studies have indicated how cross-cultural difference exists among different cultures. The differences have an effect on the communication means among people. It is evident most companies have opened businesses in different parts of the world. Such situation demands the organizations to absorb the different cultures. For example, in the UK, nodding means to understand what is being said where as in China it means listening to what is said. To avoid these barriers, it is important for organizations to understand intercultural communications. Studies have indicated how people have the aptitude to manage the business in a cross-cultural manner. It demands the business leaders have cultural intelligence. The intelligence will guide the businesses in a cross-cultural manner. For example, the researcher's company aims at opening businesses in China, Brazil, and Nigeria. The company has its top management in the UK while it wants the rest of employees in the other countries to be locals. In the researcher's case, the manager would get adapted to the new culture easily. There are varieties of potential opportunities in the global markets. It requires managers of organizations to ensure there is the development of cross cultural capabilities. The managers should ensure their employees have the necessary knowledge that will see them blend well with foreign cultures. They have to conduct extensive research about foreign cultures. The lessons will ensure the employees have created sustainable working relations with the business community. They have to understand in depth the different communication styles and cultural patterns. 5. Recommendation The report recommends the top management of any organization has to engage in diversifying management. It will assist in creating an environment that promotes cross-cultural capabilities. The report recommends the existence of a working force that promotes social integration and cohesion. It will assist in developing an interactive working environment. The report recommends for training and awareness of employees. It will play an important role in building cross-cultural capabilities. The report recommends for an organization that attracts, retain, and motivates its employees. It will be a means of the business improving its competitive margin. The business will be in a position to compete with highly competitive businesses in the global markets. Additionally, the organizations have to diversify its workforce in order to attract the top talents. 6. References Ste05: , (Clegg 2005), WLJ09: , (Johnson 2009), Olu12: , (Akinpelu 2012, Ambler 2008, DaMatta 1991), Tim08: , (Ambler 2008), Bjø09: , (Ekelund 2009), Ade12: , (Asefeso 2012, Ekelund 2009, Nabeel 2006), Fes09: , (Emiri 2009), ANa06: , (Nabeel 2006), Tim08: , (Ambler 2008), Cha08: , (Mitchell 2008), Bia10: , (Wang 2010), Pau02: , (Thompson 2002), Gwe10: , (Moran 2010, 1-2), Mer07: , (Merrier 2007), Gwe10: , (Moran 2010, 50), Appendix Chart 1: The United Kingdom in comparison with Nigeria and China Chart 2: The United Kingdom in comparison with Brazil and Nigeria Chart 3: The United Kingdom in comparison with Brazil and China Read More