The Globalization of Corporations - Assignment Example

Cross-Cultural Management Report Introduction The report is about globalization of corporations and the cultural challenges that come into play during this process. It concentrates on Brazilian companies that have spread their reach to the international scope. This study identifies the lack of previous literature and theory that can guide managers in project management across continents. It touches on the factors that surface when projects involve foreigners with differing cultures. The cultural difference is studied and evaluated to determine the ease of managing teams working with people from different cultures. The report is a step by step guideline on the influence that cultures have on the development and completion of projects. It follows research that looks at a case study of six Brazilian international companies. Projects from these six companies have different outcomes across continents, and the impact of different cultures on them are analyzed. In the end, the report emphasizes the importance of multi-cultural understanding and integration that ensures the success of projects. It also wraps up in an explanation of the reasons why it is important to know how to manage people from different cultures. It cites that globalization of companies is a norm in the present day business world (Holden, 2002). The research paper, a study on Brazilian Multinationals, and the cultural challenges they face in managing global projects, looks into the internationalization of Brazilian companies. This growth in the company depends on the need to manage multicultural teams. The biggest challenge in the literature study of this topic of development is the lack of theoretical development in this field. It is a new phenomenon that is growing at a very high rate and has caught many researchers by surprise, giving them very little time to study multicultural influences on projects. The research looks at the relationship between management of project teams and the characteristics of different cultures across the globe. It evaluates the role of managers in hiring and the planning, development, and deployment of projects on an international scale. It also looks at the major challenges facing six Multinational companies in their endeavors to achieve success in the international arena. The researcher chooses Brazil because it is a developing country (Rodrigues, 2012). Developing countries had no Foreign Direct Investment before 1980 and were known to deal locally in all their business ventures. However, there has been a significant change in this trend, to the extent where these countries’ companies have become dependable in terms of ideas and innovations. Theory and Literature The research looks into literature that covers foreign investments and cultural implications. Literature states that in 2006, the revenue created from Brazilian investments carried out abroad exceeded the one brought in by foreign investors. This revenue is an indication that there was a massive outflow of corporations from Brazil. They were looking for alternative markets in foreign countries. Moreover, they were looking for business opportunities in other countries for both short and long-term benefits. With this in mind, there were many projects running across the globe under the management of Brazilian top multinational companies. Other national firms that had limited themselves to Brazilian investments were compelled to expand their markets through small projects. The emergence of multinationals created a notion of responsibility among project managers. Going into foreign countries meant that they would have to work with foreigners in all aspects, including running the core parts of the projects. This involvement was in terms of sharing the decision-making capacity for the sake of all the countries involved. Limiting the power of making business-critical decisions to Brazilian managers would result in the lack of mutual trust. As a consequence, responsibility was also shared, from the lower casual levels to the bigger managerial levels. The administrative levels created for the foreigners included project supervisors and managers of locals in the areas assigned to them. This authority gave the foreign country a feeling of importance in the projects, enabling them to work hard towards its completion and deployment. Publications on foreign investments and projects carried out by multinationals were rare, and authors mostly concentrated on individual professionals investing in foreign countries. They also gave much of their effort in identifying sources of foreign exchange for developing countries and not on how to manage global projects. According to Hofstede (1983), cultures are more complementary than contradicting. People from different cultures can manage to live with each other through a little sacrifice and patience. The differences that exist are tolerable, and coexistence can be achievable, as the result of a powerful manpower that is essential to the development of projects. The fact that cultures complement each other means that one culture adds to the value of the other. This interaction and combination of values creates a team that can achieve more than it would when comprising of only one culture. This research looks at the use of this kind of research to determine the best ways in which cultures can blend and learn to work with each other for the ultimate success of projects. It also defines the levels to which differences between the two cultures are acceptable. Moreover, the manner in which project managers should deal with foreign cultures in the fulfillment of their managerial duties towards their employees and other managers is outlined. Hofstede (2001) mentions the various dimensions that exist in a culture. These dimensions are: masculinity versus femininity; collectivity versus individualism; power distance; and uncertainty avoidance. These aspects influence the level of interaction of different cultures. Multinationals realize them in whichever country they take their projects. The only difference that comes into play is the level to which these dimensions come into play. Most of them have varying indices in various countries according to the similarity or difference in cultures. Cultural distance is the level of variation in the different cultures. Many authors recognize the fact that cultures vary in many aspects, and that this variation is to different levels. The cultural distance can be in terms of language, education, markets and the business and legal practices. Language barrier used to be one of the biggest challenges facing Brazilian investors in the past, especially when it came to carrying out projects away from South America. However, with the opening up of the international markets, and the adoption of foreign languages, there has been a decrease in the trouble caused by differences in language. Legal and business practices in various countries also differ. This variation can be tough when it comes to the signing of contracts and implementation of projects. Some business practices that are deemed legal in Brazil may require clarification and modification in other countries. These aspects of business practices include employment benefits and leave days issued to workers on individual grounds. A case of Mozambique workers is clear, whereby relatives of a dead person were given a week off from work following the sad event. This provision was in the country’s labor laws and contradicts with Brazilian ones, meaning that there will be conflict when such an event occurs (Peterson, 2008). Research Approach The research approach used in this study is useful, considering the lack of previous literature on the topic. This study uses six multinationals and projects they carry out in other countries. The central issue under scrutiny is the effect of culture on the projects. These cultural influences differ from language barriers to beliefs of the different people involved. In the research, direct interviews played a crucial role in getting the required information (Peterson, 2008). The use of interviews is reliable because the respondents are aware of the situation and will be obliged always to speak the truth. In-person interviews also allowed the researcher to identify whether the respondents are in a position to give reliable answers and illustrations. The main informants used were the managers of various projects. This method allowed researchers identify the need to have managers with global cultural sensitivity. Such managers can integrate different cultures into their project team. Managers resolve issues at the workplace, allocate and reallocate resources and settle conflicts throughout the lifecycle of a project. This ensures the success of the project. The organizational processes of human resource management influence the processes of managing global and international teams, as cited in theoretical propositions (Rtel, 2009). The in-person interviews are not the best methods of getting reliable information from these multinationals (Cleland, 2006). The reason for this unreliability is the fact that these managers are mobile and always on the move. Getting to them might require a lot of travel. As an option, they could have resolved to online or telephone interviews for the ease of communication. Communicating with the central office in Brazil would also not have resulted in reliable information since the people in these offices had not experienced cultural conflict first hand (Comu, 2011). The research was, however, reliably done, and relevant information obtained. Findings and Conclusions Some of the main conclusions of the research were the problems encountered in completing a project successfully. Some plans fail due to communication barriers that result from different languages between the countries involved. Lack of coordinated communication brings confusion and eventually slows down the project. Another problem realized was the labor laws in some countries, such as Mozambique’s labor laws that included many leave days, slowing down work. It was also noted that some countries did not have a culture of working overtime. It required project managers to convene meetings in which they would convince the locals to work on weekends. Endemic diseases such as malaria in Africa also increased the time needed to complete a project (Barreto, 2011). The research identified the need to work around these challenges and come up with a working plan that would factor in global languages and labor laws of the countries in which they work. Implications From the research, project managers should be the key players in ensuring the success of their respective projects. They should carry out their functions effectively. This success means that they should relate to cultural characteristics to manage multicultural teams effectively. By tapping into the abundant cultural resources, they will increase the creativity and innovation of their teams. They will also reduce the rates of project failure by controlling the conflicts that are common to different cultures. In managing global teams, managers are responsible for hiring, planning of resources and developing the project team. They also manage these groups through analyzing the quality of work done and coordinating any required changes to enhance project performance, putting in mind the safety of their workers in and away from the workplace. References HOLDEN, N. (2002). Cross-cultural management: a knowledge management perspective. Harlow [u.a.], Financial Times/Prentice Hall. RODRIGUES, Ivete; Sbragia, R. (2012). Culture and Performance of Global-Project Teams: A Study of Brazilian Multinational Companies. In: Wesling, Paul; YU, Oliver. HOFSTEDE, G. (1983). Cultural dimensions for project management. Project Management. Feb., Vol. 1, nº 1. Hofstede, G. (2001). Cultures consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, Calif.: Sage Publications. Peterson, M. (2008). Foundations of cross cultural management. Thousand Oaks, CA: Sage Publications. Peterson, M. (2008). Cross cultural management. London: SAGE. Rtel, C. (2009). Emotions in groups, organizations and cultures. Bingley: Emerald. CLELAND, D. L.; Gareis, R. (2006). Global Project Management Handbook: planning, organizing and controlling international projects. USA, McGraw-Hill, 2ª edição. COMU et al (2011) Dual Impact of Cultural and Linguistic Diversity on Project Network Performance. ASCE Journal of Management in engineering, July. BARRETO et al. Emerging Issues in Human Resource Management (2011). Rev. Adm. UFSM, Santa Maria, v. 4, n.1, mai/ ago, p. 215-233. Read More