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Part A 1. Globalization is a phenomenon that no business organization affords to ignore. The improvements in technology have in a way speeded up the process of globalization. However, the expansion of world markets by rapid globalization also means increased competition…
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Download file to see previous pages... Communication problems arising owing to cultural diversity can damage the team relationships in a business organization. In the case study under consideration, the French company Lemma is facing such problems owing to the differences between its organizational culture and the cultural makeup of the Anglo-Saxon companies it has acquired. There exist distinct differences between the French and Anglo-Saxon cultural values. The organizational culture at Lemma had its basis in the French cultural and social values, which made it difficult for the company to face the global integration – local adaptation dilemma. As per the Hofstede cultural dimensions, France has a high Power Difference Index. This means that the French managers tend to be autocratic in their approach towards administration and business. They prefer a hierarchical form of organization, where the senior administrators and managers do retain a certain distance from their subordinates. The French tend to prefer a centralized form of administration and expect their subordinates to obediently endorse the decisions taken by them. French are collectivist in their business and social interactions. The teams tend to be closely integrated in their approach and composition and there exist strong bonds between the colleagues in an organization that are to a great extent determined by status and hierarchy. The managers tend to support and protect their subordinates in exchange for unquestioning loyalty. The companies operate like a large family that is usually hierarchical in its constitution. The French culture is an essentially feminine culture. Personal relationships and bonds stand above anything else. Team members prefer to be modest and caring in their approach and preference is given to arriving at mutually acceptable decisions through consensus, rather than through direct confrontation. France has a high Uncertainty Avoidance Index, meaning that the French managers have a high intolerance for uncertainty and ambiguity and are uncomfortable with contrary opinions and ideas. Hall facilitates another set of cultural dimensions, which offer more insight into the French cultural values. According to Hall, the French culture is a High Context Culture. Much is taken for granted and people believe in instinctive and contextual understanding rather than resorting to detailed explanation. There exists a strong distinction between in-group and out-group. The bonds between team members are very strong and interpersonal relationships play a crucial role in career development. There is high preference for long term relationships and people are very flexible with time. These premises are supported by the theory of Dutch scholar Trompenaars, as per whom the French culture is affiliated to particularism with highly collectivist tendencies. The French tend to be specific in their approach to relationships, depending too much on custom and protocol. It is an ascription culture, where status is governed more by traditional norms and less by individual achievement. In that context, the term ‘Anglo-Saxon’ primarily refers to the cultural values and norms of the Lemma’s non-French employees, who are primarily North Americans. The cultural values of these employees are in sharp contrast to Lemma’s specifically French values. The ‘Anglo-Saxon’ cultural values lean in the favour of a low Power Distance Index in the sense that Lemma’s Anglo-Saxon employees and managers are not accepting ...Download file to see next pagesRead More
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