The Main Cultural Challenges Facing the Managers of British Multinational Enterprises - Essay Example

? Business and Enterprise work 9th August Business and Enterprise work Different companies from different regions and countries use variant management practices. These management practices equally vary with respect to cultures. Indeed, what may be an acceptable managerial practice may be unacceptable in another culture. Most assuredly, as time lapses, there is a growing rise in cultural diversity and cultural practices and thus the need for cross-cultural management to enhance the integration of different cultures in business (Steers, Sanchez & Nardon 2010, pp. 45-50). In fact, cross-cultural management seeks to inform business mangers about cultural diversity and its effects on the business (Bhattacharyya 2010, pp. 92-95). Cultural differences influence interpersonal interactions, business management, and intergroup interactions (Tagreed 2012, pp. 105-109). Notably, in the global market environment, managers encounter different cultures and hence the need to understand the differences in these cultures and their effects on management. More so, when two or more companies merge, there must be different cultures in application and hence the need to adopt the best characteristics of the existing cultures (Ghosn 2013, pp. 1). In merging the different cultures, managers must make sure that they do not destroy the best cultural values. In addition, to implement a business strategy in a foreign country, one must consider all the cultural characteristics of the targeted society (Kozenkow 2013, pp. 1). Worth noting is that to increase the cultural knowledge of an individual or an organization is very challenging. In this context, cross- cultural management addresses various cultural challenges in the global market thus making cross-cultural operations work much more successfully. Indeed, an understanding of the cultural factors that affect a business is very fundamental for any manager. As such, the issue of cross-cultural management is very fundamental in the modern business environment. This paper addresses the main cultural challenges facing the managers of British Multinational; Enterprises in the early 21st century and discusses the main management skills that are required for Cross-cultural Management to be effective. In doing this, the paper will refer to relevant academic literature and draw appropriate examples to support my analysis. Growth in information technologies, advanced communication, globalization (Dong & Liu 2010, pp. 223-228), deregulation, and privatization have led to increased growth in cross-border business in the modern times. As the modern businesses become more global, people with different cultures have learnt to the need of working together by respecting cultural diversity. However, the growth in cross-border business attract cultural challenges which hider the success of such business (Tagreed 2012, pp. 105-109). As a result, managers adopt cross-cultural management strategies to enhance effectiveness in cross-cultural interactions. Nevertheless, managers of British Multinational; Enterprises in the early 21st century face numerous cultural challenges in the business world. One of the challenges that managers face is the difference in response to organizational practices, such as attitude and behaviors between different cultures. For example, people from individualistic and collectivistic national cultures respond differently to organizational practices where collectivistic cultures worked better in a group as individualistic cultures performed better in a specific manager (Johann 2008, pp. 10). The differences in response to organizational practices pose a great challenge to managers of British Multinational; Enterprises in the early 21st century since they may fail to offer harmonized performance in case of a merger. Another challenge relates to the cultural differences that a foreign manager or a company may face in a foreign nation that has a different culture. This inhibits the management since the employees and the managers adopt distinct cultures that may jeopardize communication, organization, and performance of a company. Communication is another fundamental challenge that managers encounter in the early 21st century. Notably, in a business, effective communication is significant to the management and overall performance in the company. As such, a manager in a business environment with people from different cultures will have to devise effective cross-culture communication skills to conduct the business successfully. However, in many cases, managers lack effective cross-culture communication skills thus leading to misunderstandings, misinformation, and conflicts since the manager cannot communicate effectively with employees, stakeholders, customers, and business partners. For example, the manager of a foreign company faces the challenge of deciding to use the parent language as advertising and working language or learn the host nation’s language (Steers, Sanchez & Nardon 2010, pp. 20). Indeed, learning the host nations’ language will require resources and interpretation of the company’s strategy, which is quite challenging. As such, communication is a main cultural challenge facing the managers of British Multinational; Enterprises in the early 21st century. Another challenge that managers face is the need to train the company’s employees for working in a cross-cultural environment. Indeed, cross-cultural training effectively improves one’s cultural literacy thus enabling them to work in the reference environment (Chen, Wang & Chu 2011, pp. 72-76). Notably, this comes at a cost and where the managers lack the knowledge to train the employees, it becomes a huge challenge since it is mandatory for effective performance in a company. National cultures also pose a great challenge to the management of a business entity. Indeed, national cultures like ideologies, beliefs, and norms limit the effectiveness of business operations and activities (Savolainen 2007, pp. 4). The company inherits these typical elements to the workplace from the local employees. For example, where national cultures demean gender equality and women leadership, women mangers would face a great challenge in operating in such environments. More so, such national cultures also limit the managers’ ability to implement change in the organization (Savolainen 2007, pp. 1-2). Additionally, the managers face the challenge of defining the most certain culture to adapt in a business environment with multiple cultures. Managers encounter numerous cultural conflicts, which require the adoption of one culture in the management of the company. For example when two companies merge, the managers face the challenge of choosing the best culture to adopt (Steers, Sanchez & Nardon 2010, pp. 16). Indeed, this is challenging because the mangers may lack the knowledge on all the dynamics of a specific culture. Additionally, a manager in a foreign company would face the challenge of adopting the local culture, which he is quite challenging since he may have little information about such local cultures. As such, the uncertainty on which culture to adopt in an organization is a significant challenge to managers of British Multinational; Enterprises in the early 21st century. Competing interests and demands of stakeholders is also a challenge that managers face as they seek to satisfy such interests. Indeed, every company has various and often conflicting stakeholders with divergent goals (Steers, Sanchez & Nardon 2010, pp. 19). The managers must meet these interests and remain objective. In a cross-cultural environment, this responsibility turns out to be very challenging to the managers. For example, where the investors and the government have conflicting interests and demeans, the managers will face the challenge of achieving a position that suits both the investors and the government. At the same time, it is true that manager’s face unique cross-cultural situations which require unique considerations. As such, the uniqueness of the cross-cultural situations is a challenge to the managers since it denies them experience to address future cultural situations. Indeed, the need for managers to address unique business situations is challenging since such challenges become more complex with the continued growth in the business world. Moreover, in situations where two companies are merging, the managers face the challenge of maintaining the best characteristics of the present cultures while enhancing evolution (Ghosn 2013, pp. 1). For example, the cultural values of one company may be the fundamental strengths for another company and hence the manager must seek to maintain the best cultural values between the two companies without jeopardizing the success of the merged company. Another challenge relates to generational transition where the manager of any company should seek to promote the growth of the next generation (Ghosn 2013, pp. 1). For example, a company may opt to compensate and promote its employees based on merit and not seniority. This may require reforms in the company which the senior employees may not appreciate thus challenging the managers. Furthermore, designing an effective strategy for working with managers from other cultures who may process information differently and views their responsibilities in unfamiliar ways is a huge challenge to reference managers since managers from other cultures may not adopt such a strategy (Steers, Sanchez & Nardon 2010, pp. 19). Ultimately, it takes time, experience, and money to acquire cross-cultural competence. Notably, achieving these requirements is challenging to managers. For example, the mangers may lack the resources to seek cultural competence in training thus limiting his cultural literacy. Main Management Skills Required For an Effective Cross-Cultural Management As globalization become more complex, management has accordingly become challenging for the 21st century managers who require modern and effective management skills to address the modern problems associated with Cross-cultural Management (Tewari & Sharma 2011, pp. 4-15). As such, for an effective cross-cultural management, management skills like cross-cultural management skills are very fundamental (Shonhiwa 2008, pp. 1-5). Indeed, good communication skills are subtle in any job. They help the manager to express himself persuasively while genuinely listening to what others are telling him (Haghirian 2010, pp. 127). In cross-cultural management, communication is very significant since parties use different languages, communicated differently, and have different communication principles (Thomas 2008, pp. 160-164). As such, for a manager to achieve success in a cross-cultural business environment, he must be able to communicate and deal effectively with people from different cultures (Fox 2010, pp. 190-196). This enhances effective cross-cultural management (De Villiers 2010, pp. 1-6). Additionally, the manger should possess better leadership skills to manage the diverse cultures in the working environment (Bigelow et al 1999, pp. 360-364). A manager must have the skills to unite people of differently cultures to work for a common goal. In this context, a manager should understand the main underlying cultural values that can affect business relationships and organizational culture. Indeed, the ability to work with people from different cultures is synonymous in cross-culture management since managers will often deal with people from foreign regions (Geisler 2012, pp. 1). To achieve effective cross-cultural management, managers must equally have the capacity to practice credibility. This involves observing transparency, integrity, and trustworthy behavior in cross-cultural relationships. This reduces conflict with other cultures and boosts the trustworthiness for the manger across different cultures thus enhancing thus cross-culture management. Moreover, a manager in the 21st century must be a global thinker where he can critically analyze and adopt global trends and events (Geisler 2012, pp. 1). This helps the manager to understand the dynamics of different cultures thus enhancing his relationship with such cultures. This improves the effectiveness of cross-cultural management. An effective cross-cultural manager must also bear flexibility skills to adapt to various operational practices and changes in cultural and social environments. This ensures effective response to cultural changes where managers can efficiently adapt to the values of new cultures thus improving the effectiveness of cross-cultural management. Such, managers should also possess the capacity to listen, address, incorporate, understand, and value the perspectives of different cultures in a business environment. This enhances cohesion and integration in the business environment thus promoting cross-cultural management. Indeed, the manager should, have the skills to design and sustain knowledge about diverse cultural in a non-judgmental way. The manager should also have motivational leadership skills to inspire other stakeholders from different cultures to collaborate, perform, and take responsibility despite their cultural differences (Geisler 2012, pp. 1). This will lead to acceptance of cultural diversity and improved performance, which manifests effective cross-cultural management. Ultimately, managers of British Multinational; Enterprises in the early 21st century must abhor cross-cultural competency in their management styles (Bucker & Poutsma 2010, pp. 830-836). Indeed, after arriving in a foreign country, managers face cultural shocks and seemingly demean the new culture. In fact, they tend to compare the two cultures and moistly seek to adapt the parent culture, which is quite risky. As such, effective mangers should be capable of accepting the new culture and become less affected by the cultural differences. This will enable them to deal with unfamiliar situations in a more comfortable way, which promotes cross-cultural management. Most assuredly, to achieve effective cross-cultural management, managers must be skilled at predicting cross-cultural conflicts for purposes of preventing them as they jeopardize performance.   Bibliography Bhattacharyya 2010, Cross-Cultural Management: Text and Cases, PHI Learning Pvt. Ltd, Patparganj. Bigelow, J., Seltzer, J., William, v. B., Hall, J.C. & al, e. 1999, "Management skills in action: Four teaching models", Journal of Management Education, vol. 23, no. 4, pp. 355-376. 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