Cross Culture Management - Case Study Example

Cross Culture Management Cross Culture Management Activity Question1 Power distance is the extent which other members of the organization accept that the power is distributed equally. According to Hofstede, there is a difference of human inequalities that underlie the functioning of a society. Germany and United Kingdom have a low PDI score of 35 because the two societies believe that inequalities should be minimized. U.S has a score of 40, showing unequal distribution of wealth compared to Germany (Raj, Colm & Brian, 2009). Japan has the highest PDI score of 54. Germans prefer a direct and participative communication and meeting style, and they dislike control and the leadership is based on expertise. On the contrary, masculinity refers to the distribution of emotional roles between genders. Japan has the lowest score of 46. Japanese are more cooperated at work, and they are likely to have a good relationship with their boss. A job promotion is done on merit basis, which are associated with lower job stress. Germany has a score of 66 thus considered to be masculine societies. United Kingdom and United States have the highest scores of 89 and 91 respectively. Both countries have private people because they believe personal fulfillment is the root of the happiness. Both countries have higher masculinity index that is characterized with numerous challenges and jobs recognition. They also believe in their own decisions, have higher job stress, and prefer to work in large companies. Long-term orientation is a score that measures the philosophy related with Confucianism: perseverance and thrift, personal stability, respect for tradition, honor of ancestors, and have a duty of financial support of parents. Japan has the highest score at 80. U.S, U.K and Germany have relatively low score of 29, 25 and 31 respectively. Question 2 The type of managerial types in business negotiations among the Japanese is hierarchal in its power structure. In Japan, not everyone is allowed to speak during the negotiations. In most cases, they are represented by a team of experts; also they take longer time during negotiations because they see business as a lifelong commitment to trust and loyalty. The cultural differences also have a significant impact on leadership. The British emphasize on charismatic leadership, on the contrary, the Germans managers are rather more systematic and routinized with the individuals working towards a similar goals. While comparing between the British and Japanese managers, the British are more likely to take risks, and Japanese pay attention to the details. These differences lead to cultural confrontation in the case of BMW and Rover, and BMW changed the British Rover CEO Manager for a German. It is no always better when people with an equal mind set work together; as a result the strategies are easier to accomplish particularly it the manager is on the same nationality with the owner. In these cases, it is evident that there is a difference in the different orientations of companies regarding long-term or short-term orientation. The Japanese are more likely to have a long-term relationship with more emphasize on trust to a greater degree than the western companies. For example, they had different purposes for the joint venture. Honda wanted a long-term partnership in the European market. Rover, on the other hand was interested in the Honda skills, in regard to R&D and production. Activity 2 The Dutch advertising agency threatened to discontinue to advertisement campaign Korean company not to use the slogan if the company does not pay. This was vital to the success of the company because it was new in the market. On the contrary, the Dutch agency would also lose the money if the contract were terminated. The national culture plays a significant role in shaping the behavior that influence administrative attributes. Some culture put more emphasis on the universal commitments because some may emphasis on honesty, other emphases on loyalty. Thus, there was potential for misunderstanding between Netherlands and South Korea. In Netherland, bosses are viewed as team leaders as opposed to being decision-makers who can only delegate roles to others. Thus, people are encouraged to express their opinions freely at the meetings. Nevertheless, the final decision lies on the hand of the team leader. On the contrary, South Korea prefers relationships between the parties concerned as the actual transaction itself. This will entail considerable attention to building trust and respect while also displaying courtesy towards those in senior positions (Dana, Wayne & Chol, 1993). During business meeting, courtesy must be observed to ensure that both parties. If the harmony is maintained, confidence and trust will build and this in turn will form the basis of consensus and eventual agreement on a deal. Patience is essential to decide whether a deal can be made. These elements caused frustration to the Netherlands, most often when they make business deals with the South Korea. They try to make deals under pressure and time. In order to have a solution, the negotiator should the Netherland not to make deals under pressure, and they may opt to initiate a business meeting with a handshake with the South Korean counterparts. Their brash and egocentric behavior and imposing a deadline will not a good strategy. Activity 3 Question 1 In Germany, the co-determination rights are comparatively extensive and are always taken into consideration by management. The German dislike control by their leaders and in most cases challenges their leaders to show expertise and expects the best level of expertise from their leaders. The leaders use a direct participative communication, which allow other employees to share their ideas. Swedes leaders are independent and hierarchal for convenience purposes only. Both the employees and the leaders have equal rights, and the management empowers and facilitates this strategy. The power is decentralized and the leaders count on the staff experience for the success of the organization. The staffs expect to be consulted. In addition, the employees dislike control and their attitude towards the manager are informal. Power is decentralized and managers count on the experience of their team members. Personal status is not highly valued in Sweden. Managers often give signals regarding their status, and the staffs do not feel inferior. A manager is considered to be a specialist in managing the organization, but is not seen to be socially superior. Swedes usually use first names at work, and the managers are also addressed by their first name (Sivakumar & Nakata, 2001). On the contrary, Japanese are conscious about their hierarchal position. The decision-making process is thus slow because all decisions are confirmed by each hierarchical layer. In this regard, there is no one who is considered to take decisions. Additionally, Japan has always been a meritocratic. They believe that everyone was born equal. Question 2 Laurent studied on of the most significant management characteristic is the capacity to resolve problematic situations. This showed how much it is influenced by national culture. Managers were asked whether it was necessary for them to have a precise answer whenever they are asked questions relating to work that could be asked by their staffs. The results of completed studies demonstrate that a range of national and cultural differences influence on the growth of organizational behavior and management style. Activity 4 Question 1 Japanese often to avoid giving negative feedback and they prefer to talk about things that are wrong in the organization (Marieke & Geert, 2002). The most efficient way to improve the company is to focus that are going wrong and fix them. They prefer to point out areas of improvement rather than complimenting. They use the strength to resolve problems and issues. In this case, they offered a higher price than initially provided; they understood the situation in the South Africa. Question 2 The British used intense debates in the meeting as a strategy to get to a solution. The boss displayed very strong emotions, although it did not necessarily imply that he was extremely furious. He was trying to debate a point intensively so that the Japanese could understand that their price deal will be hardly profitable because it would result in the mine closure and retrenchment of thousands of South African workers. This led to uncharacteristic outburst because the Japanese were criticizing them of exploiting the workers. The Japanese were shocked by the boss debating furiously during the meeting because they are much quieter. However, one of the monologues apologized to the Japanese. The Japanese on the other hand had a quieter personality. In this case after the outburst, they engaged in a whispered consultation, after which the British team was, invited back so that they can give the final decision. The Japanese prefer to maintain harmony. Question 3 In most cases, Japanese do not prefer highly debated meeting with a furious outburst because they believe such people will have the same characters when doing business. In this instance, after the furious debate with the British boss, the Japanese agreed to make a business deal; in fact they offered a higher price than the proposed price, which is very unlikely. On the other hand, the British may engage in an intense debate to get a solution, but this does not necessarily mean they are angry. However, in this case, the boss was very furious with the Japanese weak negotiation that led to uncharacteristic outburst. He was ready to the customer rather than compromise on the price. Reference List Raj, A,, Colm, K,. & Brian, L. (2009). Gravity as a cultural arteface: Culture and distance in foreign portfolio investment. Dana, A., Wayne, H., & Chol, L. (1993). Identifying Global and Culture-Specific Dimensions of Humor in Advertising: A Multinational Analysis, Journal of Marketing, 57, 64-75. Marieke, M & Geert H. (2002). Convergence and divergence in consumer behavior: implications for international retailing. Journal of Retailing 78, 61-69. Sivakumar, K. & Nakata, C. (2001). The Stampede Toward Hofstede’s Framework: Avoiding the Sample Design Pit in Cross-cultural Research, Journal of International Business Studies, 32 (3), 15-35. Read More