Cross cultural management - Essay Example

? CROSS CULTURAL MANAGEMENT By of the of the of the School 17 November Introduction Leadership has been given varied definitions by authors of various books, but the remaining fact is that leadership relies much on the socio-cultural set up of a nation. According to Waite, “cultural groups vary in regard to the characteristics of leaders they perceive as most important” (2007, p. 5). Several global studies have identified several attributes and aligned them with different cultures throughout the globe. Cultural dimensions are always believed to be the most significant factor that determines the most effective leadership in different cultural environments. Leadership in China Studies of the ancient china are useful in the understanding of the leadership models in modern china. Research on Chinese leadership is accredited to a scholar known as Misumi, who was Japanese. According to his research, he categorized Chinese leadership into two major classifications notably the model of performance and the maintenance (Schumann, 2011). Maintenance factor is the step taken towards improvement of the human labour force. An interesting close examination of the leadership style adopted in China reveals that leadership characteristics are spread along the organizations with close similarity. For example, according to Mobley, Wang and Li (2012), the survey conducted on state owned enterprises and the private owned enterprises shows that the managers are more sensitive to the environment, are less authoritarian, and encourage a lot of moral behaviors. In particular, the traditional cultural values have more often shaped the styles of leadership and mode of management in china. According to Boden (2008), leadership in china originates from various qualities as compared to other nations; leaders are created on the basis of knowledge and attitude. The advantage that the ruler has is that the Chinese are very loyal to their leaders and are always ready to take up the responsibility whenever a need arises. The current leaders in china are more linked to the olden traditional rulers because they share certain traditional similarities. According to Boden (2008), these values are Confucian approach, legalistic approach, naturalistic approach, as well as the strategic approach. The Confucian approach, which is also known as the humanistic leadership requires a leader to have moral character and proper conduct. He is also expected to be a lifelong learner. The legalistic approach demands that a leader undergoes punishment whenever he goes wrong; it articulates for stricter codes of conduct. This leader is also expected to have the skills of attracting skilled and knowledgeable followers, rather than them having to display their skills. In this case, the leader is expected to be wise, and at all times, avoid getting into trouble. The delegated duties should be accompanied by rewards if a worker performs well. China is a unique nation with a different cultural setup compared to other nations in the West; this has led to its unique ways of leadership styles that do not conform so much to those of the Western countries. The methods of leadership practiced in other nations have to be greatly modified if they are to fit the nation of China and the vice versa. Gallo points out that “in fact many of them will never work well here” (2011, p. 5), meaning in China. There are cultural differences that exist between China and the countries from the west. There is also difference in which expectations are laid between the workers and the leaders. Another contributing factor to these differences in leadership styles are the societal values that do vary; some of the values from other nations that may be seen as good can be perceived differently in China. Challenges of leadership are complicated and harder especially when members of an organization come from different cultural setups from that of their leader. The naturalistic approach is based on Daoist principles, which state that good leadership is the one that comprises both the Yin and the Yang management styles. Yang is a western based style agitating for rights and responsibilities, while Yin is an Asian style based on relationships and values (Boden, 2008). The Chinese believe on this kind of leadership, as it is effective and transparent. It is believed that human problems begin when distinction from right and wrong occurs, and this often leads to judgment. Naturalism comes with wisdom in hand, which is a virtue that holds things in a holistic view; things are held all equally without discrimination. The strategic approach holds that one should have moral influence and is expected to have a lot of refined character. He is expected to have an established character, which has been well developed. A strategic manager has the ability to command, a lot of wisdom, and is trustworthy. He needs to lead without fear or favor, and is always prepared to take risks in order to enforce discipline. Leadership in Vietnam The Vietnamese community is considered as one of the subcultures found in the city of Houston. Hoang alleges that the culture of the Vietnamese is achieved through life experiences, as well as education; this overwrites the ones acquired through wealth and material possession (2008). This makes leadership in Vietnam different from that of other countries and it becomes a challenge to foreign managers, who establish businesses in Vietnam. Researchers in Vietnam found out that the most popular style of management used in state owned enterprises is the bureaucratic style. This is majorly influenced by the fact that most of these enterprises were medium and large sized. Through the research, most of the respondents suggested that the second most used leadership style is the familial style; this is most influenced by traditional culture. On top of these, other styles that are used include the authoritarian, conservative, and participatory styles. Gutterman (n.d.) is quick to point out that, the researchers had noted that in Vietnam, state owned enterprises also preferred reporting relationships, as well as formal communication, and while these values are important, they are not suitable for the competitive environment. Private owned enterprises prefer the familial style, since the managers and employees have closely related family ties. However, at some point, they employ bureaucratic, conservative and authoritarian styles of leadership. For those who practice joint ventures, they prefer participative management, so that they can learn from their foreign counter parts. Leadership in Germany Leadership in Germany originates from the business practices which determine the managerial style with collegial, consensual, product, and quality oriented characteristics, as well as loyalty to one company, whereby one is expected to make a long term commitment. Before 1980, it was rare to get courses in Germany that were based on management, as compared to countries like the United States; instead, the most common courses were based on business administration. These approaches are made by approaching management in terms of cultural sociology and history (Armbruster, 2005). The correlation of culture and managerial styles in Germany can be effectively visualized using the theory of cultural determination (Minkova, 2013). Richman developed a model where culture is considered an important variable in determining managerial actions. According to Kwintessential (n.d.), the business set up in Germany is to a large extent formal. For one to achieve successful management, then he should be prepared to have regulations, be principled and ready to follow the rules and regulations of the business at all times; this is the great believe of Germans, who are on the ranks of management. It’s a culture in Germany that everything is controlled by time, scheduling systems are essential and any delay in activity is considered as a sign of laziness. Their time adherence translates to better performance and success. These virtues drive most managers and their subjects. How a Chinese Manager might need to change his Leadership Style while working in Vietnam and Germany The main goal of intercultural management is to have an understanding of various approaches used by managers worldwide. When one is to play the role of management in an outside country, away from his native nation, a good comparison is made by establishing significant differences in terms of socio-cultural and managerial variables. Socio-cultural differences are examined in the way of thinking and perception. Across many nations, management is divided into several categories. Minvoka (2013) divides management into three categories namely organizational structure, managing processes, and interpersonal relations. A Chinese manager has to ensure that he understands the business practices and cultures of Vietnam, in order to have a successful business in Vietnam. The understanding of cultural differences helps many managers to adjust their leadership style, as well as their attitude and behavior towards business practices. The issue of cultural differences and the management styles are of high significance. The relationship model below will serve best to explore the similarities between the two. Globe researchers have found out that there are various values that are essential to any leader that is to serve globally. In this context, the Chinese leaders who are to work in Germany or in Vietnam need to be charismatic or value based, team oriented, participative, and humane oriented. Value based and team oriented leadership styles are very essential in cross cultural applicability. Harris, Brewster and Sparrow (2003) stress that such attributes as visionary, inspirational, self sacrificial, integrity, and decisive are more desired for effective leadership around the globe, and need to be adopted by Chinese leaders who are to hold leadership positions in Germany and Vietnam.   Analysis of management style factors cited in Hoang, 2008, p. 23   Hoang (2008) defines cultural differences as the differences in the behaviour of managers from different countries of origin, a characteristic that will have an impact on their decision making, while management style refers to a model used to measure the influence one has on personal views. Harris, Brewster and Sparrow (2003) are in agreement that there is strong connection between culture and leadership styles, and with the fact that societies do vary in terms of traditions, ideologies, norms, and values, successful leadership must learn to conform to all these in order to be more efficient. Reference List Armbruster, T., 2005. Management and Organization in Germany. Hampshire: Ashgate Publishing Limited. Boden J., 2008. The Wall behind China’s Open Door: Towards Efficient Intercultural Management in China. Ravensteingalerij: Academic and Scientific Publishers nv. Gallo, F. T., 2011. Business Leadership in China: How to Blend Best Western Practices with Chinese Wisdom. Clementi Loop: John Wiley & Sons (Asia) Pte. Ltd. Gutterman, A. S., n.d. Vietnamese Management Systems. [pdf] Available at: < http://alangutterman.typepad.com/files/mdc_05.23.2011_vietnamese-management-systems.pdf > [Accessed 17 November 2013]. Harris, H., Brewster, C. and Sparrow, P., 2003. International Human Resource Management. London: Chartered Institute of Personnel and Development. Hoang, H., 2008. Culture and Management: A Study of Vietnamese Cultural Influences on Management Style. Michigan: ProQuest. Kwintessential, n.d. Intercultural management- Germany. [online] Available at: [Accessed 17 November 2013]. Minkova, V., 2013. Managerial Styles: A German- Chinese Comparison. Munich: GRIN Verlag. Mobley, W. H., Wang ,Y. and Li, M. ed., 2012. Advances in Global Leadership-Volume 7. Bingley: Emerald Group Publishing Limited. Schumann, S., 2011. Time Perception in Leadership. Munich: GRIN Verlag. Waite, M. R., 2007. Fire Service Leadership: Theories and Practices. Sudbury: Jones and Bartlett Publishers. Read More