Global Business Environment Issues - Essay Example

Global Business Environment Question 2. Although it is observed that contact across cultures is being widespread, international business is still constraint to a great extent by cultural observation and the impact that cross-cultural differences might have on the costs of doing business in different countries. Support your discussion with appropriate examples. Cross cultural diversity or multi-cultural diversity in its broadest sense implies the differentiation among foreign cultures and the differences within any given culture. This likewise pertains in general to distinctions between foreign cultures that are interlinked within international business relations (Tovey 1997: 1-2). Often, cultural differences in any work place hinder the smooth accomplishment of objectives in multicultural businesses worldwide. This is the main reason why efficient utilization of cross cultural teams can make innovative sources of thinking and experience available, since it improves the competitive edge of companies, organizations and conglomerates that operate businesses in different countries (Anbari et al 2003: 1-8) world wide. To steer clear of cultural misunderstanding and achieve projected objectives, management must have the capability to encourage creativity; motivate its workers by being flexible and practical; and should be perceptive to the variant culture which exists in the rank and file of the organization. And because cultural dissimilarity constantly exists between workers employed within the same company, managers must be able to recognize and forecast setbacks that may arise due to the relationship of people in the work place; the workers motivational orientation; and the general attitude of said workers with regards to accomplishing a pre-set goal within a given timeframe. Failure to recognize the various aspects of cultural diversity will impede the successful completion of projects that need to be done. And when this kind of event happens often, the business will eventually suffer affecting the management, the various stakeholders of the organization and its employees (Anbari et al 2003: 1-8). In detail, the problems related to cultural diversity involves four (4) particular dimensions or scopes, which are: 1) power distance; 2) uncertainty avoidance; 3) individualism versus collectivism; and 4) masculinity versus femininity. Power distance pertains to the unequal or imbalanced distribution of power within a given setting or society, where the less influential members of an organization anticipate and agree to the lopsided distribution of authority as a normal occurrence. An instance of a power distance scenario is exemplified through the management group and rank and file employees of an organization/company. Typically, the management which is composed of managers, heads and supervisors often have the final say on how a certain project must be accomplished. Thus, this leaves the less influential group – the rank and file workers, to do what they are told so an expected venture is accomplished. More often than not, the workers in this case accept what is given and do their utmost best to complete the job which they were assigned to do. Uncertainty avoidance on the other hand is best described as the extent with which members of a particular culture program are made to feel either comfortable or uncomfortable in events or circumstances that are surprising, unexpected or different from the standard way things happen or are accomplished. Dilemmas arise within this particular aspect when the organization attempts to have power over things or issues that cannot be controlled. An example of this type of dimension is when a western oriented company establishes an office in eastern countries. Normally, work ethics in western countries call for workers to be frank or truthfully blunt aside from the fact that any dealings with the government in relation to the acquisition of business papers are done with the most minimum amount of time. However such situations like being frank and accomplishing business papers are viewed differently in eastern countries. Specifically, a worker cannot just be told bluntly that his or her work is below par; and to shape up or be shipped out. Although this can be done, but the words and manner in which it must be delivered should be more subtle so as not to hurt the feelings of the said employee. Likewise, if the company needs to deal with government agencies – then the appointed head or manager must learn to be patient since business among other things are usually taken at a slower and protracted pace in eastern shores. The next dimension is individualism versus collectivism, which is manifested by individuals who may either continue to be a part of his or her own social group in cases of collectivism; or may look after themselves without attachment to any particular group in the company’s workplace (individualism). A perfect example of this is an expatriate from the UK who is relocated to a Middle East country or an Asian country. More or less the expatriate will be able to perform his or her job as expected without necessarily aligning himself or herself to any group which currently exists within the company. This is highly in contrast to the other employees who were locally hired, since they need to bond with their own respective social group to have adequate confidence in order to perform their duties satisfactorily. This is predominantly based on the traditions and cultures of the country like those in the Middle East and in Asia because social association with friends, neighbours and family are of paramount importance in the workplace. The last dimension which is related to cross cultural diversity is masculinity versus femininity. This is considered to be a very common problem between the male and female gender, although perception of the role played by both sexes is mainly dependent on the traditions and occupations present in different countries where men and women have distinct roles which they are expected to naturally fulfil (Anbari et al 2003: 1-8). While most companies these days consider men and women equal in their organization line-up, culture in other countries dictate otherwise. Generally, men are given supervisory positions while the female gender is usually relegated to menial office jobs like secretary, clerk, etc. This goes to show that in many traditions of countries around the world men are still considered to be the best of the two genders. It is expected for people living and working in different countries to be faced with the problem of having to adapt to the local culture and this also goes true for the whole organization or company in general (Gitelson et al 2001: 1-4). Hence, if the organization’s management is aimed at making its offshore business a success and prevent the expanded impact of any culturally related issues, it must be conscious of the dilemmas linked to cultural diversity. Such predicaments should have short and long term solutions that can be implemented to prevent the business from slipping into bankruptcy and closure. First and foremost, management must consider all its employees a part and parcel of the organization. This implies that workers must not be seen as mere machines needed to achieve a common end. Instead they must be perceived as individuals who have feelings and skills which vary from each other. It is important to seriously regard the cultural differences between employees, therefore treating each employee’s case or issues independently. Moreover, heads and supervisors must be able to distinguish the varying talents of the organization’s current employees to be able to come up with effective team members who can supplement each other’s strengths and flaws. Team work is significant to the survival of the organization, and employees/workers must be well motivated to do their responsibilities in a satisfactory manner. This can be encouraged by giving them their rightful benefits which is accompanied by the assurance that they have job tenure or job security so the company does not lose good workers with skill to the competition. Additionally, the organization must be aware of the cultural patterns present in the society or community where it wishes to establish its business. It is essential to learn another country’s culture particularly in business practices and social customs because basic thoughts, attitudes and belief differ extensively (Schomer 2003: 1-3) amidst obvious similarities. This places key players who are involved in the business on both ends in a critical position, because they are expected to do their jobs in culturally diverse surroundings. For this reason key people must be cross-culturally trained and competent to ensure business success and divert risks that contribute to the financial loss of the company. To be cross-culturally competent and proficient means having in-depth knowledge about other cultures and being capable of adapting to a mixture of culture and tradition (Schomer 2003: 1-3). Once this has been attained, the margin of success in developing a business in other countries can be deemed more feasible. Relatively, key personnel in any organization must have the appropriate leadership skills to be able to relate well with his/her peers and staff. This will require proper communication approaches that may differ from one individual to another since different cultural upbringings call for various ways of verbal interaction. Mutual respect must likewise prevail within the organization because without this, any prospect of having harmonious working relationships with others will never materialize. Wholly, the success of being able to thrive in a cross-cultural business environment entails culturally sensitive leadership, good multi-cultural communication and mutual respect (Anbari et al 2003: 1-8). References Anbari, F. T., Khilkhanova, E. V., Romanova, M.V., Umpleby, S.A. 2003. Cross Cultural Differences and Their Implications for Managing International Projects. [Online]. Available: http://www.gwu.edu/~umpleby/recent_papers/2003_cross _cultural_differences_managin_international_projects_anbari_khilkhanova_romanova_umpleby.htm [25 November 2010] Gitelson, Gene, Bing, John W., Laroche, Lionel. 2001. The Impact of Culture on Mergers and Acquisitions. [Online]. Available: http://www.itapintl.com/facultyandresources/articlelibrarymain/the-impact-of-culture-on-mergers-a-acquisitions.html [25 November 2010] Schomer, Karine. 2003. Culture Matters: Cross-Cultural Risk Factors in Offshore Outsourcing. [Online]. Available: http://www.sourcingmag.com/content/c061211a.asp [25 November 2010] Tovey, Janice. 1997. Addressing Issues of Cultural Diversity in Business Communication: Business Communication Quarterly, Vol. 60. [Online]. Available: http://www.questia.com/googleScholar.qst?docId=5000443958 [25 November 2010] Read More