A Cross Cultural Dimension - Research Paper Example

INTERNATIONAL MANAGEMENT Introduction The contemporary business organization, particularly those whose operations span several countries or cultures, is a feat of managerial orchestration. The coordination of manpower, machinery, money and materials to produce goods and services that will be well received by the market, and in the process create value for the stakeholders, is already a remarkable task when done in a single-country environment; to have to do it in a multinational, multi-cultural milieu, and to do it with a decent measure of success, is already an overwhelming accomplishment. Multinational organizations attribute their success to many things – often strategy, sometimes one or two differential advantages, and many times the resources and productive capacity they have at their command. But ultimately, the key to the success of an organization will always depend upon the creativity, perseverance, and tenacity of the people manning the organization. In people lie the motive force; without the manpower, the money, machinery and materials remain exactly that. The value added emanates from the innovations introduced by the human element. This discussion shall provide insight and reaction to a statement by Green (2003), to wit: “We don’t look so much at what and where people have studied, but rather at their drive, initiative, and cultural sensitivity.” However, before we give meaning to his statement, we explore the context in which such statement had been uttered. The Green Insight Stephen Green, then Group CEO of Hong Kong Shanghai Banking Corporation (HSBC), has the unique perspective of one who has shepherded personnel of diverse cultures and orientations. He recounts that from the time he joined HSBC in 1982 to the time of the writing of the article in 2003, the corporation had grown from what was essentially an Asian company, to a truly global enterprise. It is difficult to define what is meant by “global,” according to the article’s introduction, and in this there is much truth. Does it mean that the company maintains a presence in several geographical locations around the globe, or that the company is owned by stakeholders worldwide, or is it because it maintains a corporate culture that may be influenced by a variety of national cultures? Many academic articles contend that there is a difference between an organizational that is global, multinational or international (Muchlinksi & Dine, 2008); from the standpoint of management practice, what does it mean to be all of these? For Green, the fact that HSBC has through the years attained a multilingual capability is a corporate strength that has enhanced its strategic position. From 30,000 employees in 1982, the company has expanded to include 215,000 personnel worldwide. Expansion has been primarily through acquisitions, and the range of services have broadened significantly to cater to their expanded clientele. HSBC is unique among banks, in significantly less than half (the highest is 40%) of their profits come from any one locality, compared to the other banks which derive three-quarters or more of their profits from one home base. This is indicative of the truly disperse nature of HSBC operations, making it a bank with multinational strength that operates like a chain of small local banks. In the article, Green’s comment refers to their manner of recruitment. Many of the company’s new recruits are fresh university graduates, that is, people with little or no experience, no specialization, and the basic knowledge. Green believes that it is disadvantageous for an organization to source the major proportion of its personnel at mid-career. Recruitment at HSBC is a battery of tests, interviews and exercises, for the reason that the company relies less on credentials, diplomas and resumes, and more on the applicants’ personal attributes that will prove them excellent employees and assets to the company. What a good employer develops in its employees is their innate talents which exist in their potential but have not been explored. The complexities of IHRM All companies do well to seek drive and initiative among the personal qualities of their recruits, because when an employee possesses both he or she would have the capability to make up or offset any shortcoming they may have by way of deficiency in training and lack of experience. What is unique in HSBC’s sought-for qualifications is the quality of cultural sensitivity. This is of little use professionally among companies that have a largely local orientation, but for a globally disperse corporation the qualification is a necessity. For instance, in HSBC nobody gets promoted to the top post without having served in at least two major country markets. Mobility is an indispensable requirement for HSBC managers, pursuant to the adage that travel broadens the mind; thus by living in one, two, or more countries other than one’s country of origin creates a truly wide perspective and an understanding and bonding with persons of different persuasions, cultures and races. In seeking to understand the challenges posed by conducting business in a multinational setting, it is important to recognize that basic difference exist among the business environments of each of these countries, encompassing not only the socio-cultural but also the legal, economic, political, technological and environmental aspects. There used to be a time when the tenets of management, particularly Taylorism and scientific management, were taken to be hard and fast rules applicable in all instances. Thus, businesses in poor countries were thought to be best managed in the same was as those in rich countries, and their personnel dealt with in the same way. The “universality of sound management” practices were thought to bring countries to a point where they were all the same. Hofstede (1983) called this the “convergence hypothesis.” On the contrary, said Hofstede, nationality is a factor that should not be set aside and relegated to insignificance. In fact, contrary to the convergence hypothesis, national and regional differences are not disappearing, but persist and even define the degree to which success may be attained by business operations. Hofstede specified three reasons why nationality is important to management. The first reason is political. Quite apparently, nations are political units, with their own history, institutions, forms of government, legal and educational systems, labour and systems of labour organization. Formal institutions differ, as well as the informal ways by which they define and influence the lives of people. There are political realities that tend to resist attempts to institute change. For instance, labour unions do not have the same stature and influence in Japan as they do in the United States. The second reason is sociological. There is a symbolic value citizens attach to their nationality, as they derive part of their identity form it. National pride and patrimony are strong enough reasons for some societies to go to war, and where a corporation perceived as a foreigner transgresses against social values in a manner that is interpreted as an affront to nationality, then the corporation’s effective operations or the saleability of their products in that country may be in jeopardy (Yu, Ha & Oh, 2007). One need only look at the socio-religious adherence among Arab countries, or the strong communal ties of the ethnic Chinese even in other countries, to realize that national and regional identity, while symbolical more than factual, is a major consideration for the determination of the conduct of business operations. The third reason is psychological. The conditioning of people by national cultural factors begins early in life and lasts a lifetime, and no amount of training, education or indoctrination will completely eradicate this mental programming. For instance, some cultures tend to reinforce in their people’s minds that some jobs are appropriate for males and inappropriate for females, and vice-versa., while other cultures do not make such a distinction. This mental conditioning also plays an important part in the manner a business organization is seen to treat its employees where such employees come from different cultural backgrounds. To these reasons, Tayeb (2005) adds the importance of business imperative factors, that have to do with market conditions (competition, interest rates, customers, clients, and so forth), a view concurred in by Rohrbeck, Arnold, & Heuer, 2007. Conclusion There are no hard and fast rules where management of people are involved, much less where the organization operates in a global environment. In Greene’s comment, he emphasized that it matters little where a person has studied, or what he has studied. There can be no generalization on the basis of externalities, because the credentials differ from country to country. However, the traits that do matter – creativity, perseverance, drive, innovativeness, and most of all, a sensitivity to the cultural nuances of people who may comprise the market, the labor pool, or one’s colleagues in the office – these are the true determinants of the success of a truly global enterprise. Unless management is enlightened on this perspective and develop its manpower in this direction, then it cannot hope to successfully attain the status of a truly prosperous global entity. References Green, S; Hassan, F; Immelt, J; Marks, M; & Meiland, D 2003 In Search of Global Leaders. Harvard Business Review. Hofstede, G 1983 The Cultural Relativity of Organizational Practices and Theories. Journal of International Business Studies, vol. 14, no. 2, Special Issue on Cross-Cultural Management (Autumn), pp. 75-89 Muchlinski, P & Dine, J 2008 Multinational Enterprises and the Law. University of London. Rohrbeck, R; Arnold, H M; & Heuer, J 2007 Strategic Foresight in multinational enterprises – a case study on the Deutsche Telekom Laboratories. MPRA Paper No. 5700. Munich Personal RePEc Archive. Tayeb, M H 2005 International Human Resource Management: A Multinational Company Perspective. Oxford University Press. Yu, J; Ha, J-W; & Oh, D-Y 2007 Causes of Conflicts for Local Information Technology Managers in Multinational Companies. Journal of Technology Research, vol. 1. REFLECTIVE ACCOUNT – PODCAST MODULE a) What you have learnt as a direct result of undertaking this module. At the start of this module, I was eager with anticipation about what the activities and learning processes will entail. Working with colleagues in a group can be both rewarding and challenging. It affords me the chance to collaborate and bond with my pears, while at the same time providing invaluable additional information to enhance my current knowledge. It is challenging because it affords us the chance to forge new friendships, because it is only when people work together that they get to know each other better and understand not only each others’ capabilities but also each others’ personalities.. It could be challenging because there are times when personalities tend to clash and disagreements arise. Among children, such disagreements would easily graduate into quarrels; however, among mature individuals disagreements are merely part of the interactions process. In fact, having varied personalities in a team could be important to the success of the group. According to Wallace (2001), when brought together to achieve a common goal, the different temperaments can work together in creative and productive ways. But the process requires time and interaction, and at some point it becomes necessary for some individuals to give up some measure of control for the benefit of the group. It is during this time that team members realize that no one person possesses the answers to all the problems, and everyone must come together to with honesty and sincerity, to show what each could actually and capably bring to the table, and what he or she can commit. It is at this point that the group begins to work as a single entity. What I have learned from this experience is that there is a measure of patience and tolerance that I can muster within myself to be able to compromise and cooperate with my group, and in the process produce something truly creative that I would not have been able to accomplish by myself. Different people have different skills and talents, and working together as a team brings this out in order for us to deliver a successful project. b) Why this learning is so important to you either now or in the future. This learning is important to me, now as well as in the future, because it has shown me the extent to which I am capable, both in terms of behaviour and academic skills. There was a time when projects that appeared difficult on the outset daunted me to the point that I would refuse the challenge; in truth, it is possible that I would not have been able to accomplish such challenges by myself. That is why this experience has helped me realize that projects, especially those that require a blend of different creative – artistic as well as technical – skills are best addressed with the help of others who possess the skills that I might not personally have. The importance of this learning is that it opens many opportunities for me to be brave enough and try things that I have never tried before. I have never created a podcast by myself before, and having done so I have come to be interested in trying other new things. Possibilities have opened up for me; should I need to create a podcast in the future for my own personal purposes, or in relation to my occupation, I will have no problem recalling my experience in this module and performing the steps and procedures which we had done. Learning by doing is an important technique that produces much better results. According to Dr. James Zull (2006), learning is a cycle that occurs through a series of four stages: first, we get information from a concrete experience; second, we construct a meaning out of that information; third, we create new ideas from the meanings we derive out of the experience; and finally, we act on those ideas, thus creating a new experience we could learn from, and the learning cycle begins again. The experience afforded by this module constituted a full learning experience for us, because there was action, feedback, adjustment, and action, until we were finally rewarded with the desired quality of podcast. The creation of the podcast became as much a source of learning as the research and study that had gone to gathering the material in preparing it. c) How this new learning can be utilized or transferred either now or in the future: This new learning can be utilized whenever the need arises. As far as the technical learning is concerned, there are many opportunities wherein one may need to prepare a podcast. As mentioned earlier, this may prove useful in our studies, our occupation, and even merely as a hobby one does for the pleasure of sharing one’s knowledge with others who might be interested in the subject matter. As far as the behavioural aspect is concerned, the insights gained from the experience of working with a team on this project may be utilized everyday in all instances. We are social animals, and there are always opportunities to work with other people constructively and creatively. A special application of this would be in one’s home life, where the people closest to us, our families, would benefit by the greater tolerance and understanding we could employ in dealing with them. How the information may be transferred, for now or in the future, may require a bit of insight about the nature of the knowledge gained. Technically, the information may be disseminated by putting the podcast online and allowing others to avail of it. It may also be shared by teaching others to create a similar project, whenever the opportunity arises. Finally, there is no better teacher than by setting a good example; thus, for the insights on behaviour learned, this is best shared by practicing what has been learned in a way that others are able to witness it. The new things learned is always a stepping stone to acquiring other new knowledge to learn. Susceptibility of acquiring this learning, however, may be limited by the person’s experience garnered so far, his maturity and disposition in appraising it, the value it holds for this person, and his desire to learn something new. There are many variables that will influence the use of knowledge and the manner by which the knowledge may be imparted to others. On the whole, if one person does not find the usefulness or necessity of learning something, of if there is no interest to acquire new learning itself, then no matter how much or in what manner knowledge is passed on, there will be no learning. Learning is an internal thing. d) Gaps in knowledge, skills, and behaviour that might still exist, and what to do about them: Certainly there shall exist gaps in knowledge, skills and behaviour despite the highly productive learning module. Gaps in knowledge exist in needing to acquire greater depth and breadth concerning the topic, because knowledge constantly evolves and changes and there will always be a need to update. Gaps in skills exist, because as a group we each did our part, meaning that there are jobs that we were not able to experience. Gaining skills in those areas which we considered ourselves deficient in would be a continuing challenge, and since new technologies continuously evolve, then the need for skills to likewise address these new technologies will continue to arise. Gaps in behaviour again will emerge, because as time passes we become aware of shortcomings in our personalities that influence the new insights we have gained about our behaviour. For instance, there will be instances and conditions when we will become aware that there are no easy ways to assimilate new behaviour patterns. It is part of human nature to backslide into our old behaviour patterns, and it will take much practice and effort to make the new, desirable, behaviour a habit which will come as second nature to us. In order to address these gaps, it is important to always maintain an open mind and fresh approach to new experiences and information. As Zull (2002) mentioned, learning is a continuing cycle that begets new knowledge. However, when one has shut himself off to new experiences; or, having new experiences, if he has closed his mind to gaining impressions from them, contemplating their importance and gaining new insights from them, or having done so fails to act on them – any break in the cycle causes learning to stop and the person’s mind to stagnate. While people are open to them, however, then learning continues, and the person’s world expands. He becomes so much the richer for it, for himself and his family and friends. References Desrochers, C 2002 Knowledge-Level Learning and What the Brain Wants: Attention, Connection and Concretion. Fernandez, A 2006 Cognitive Neuroscience and Education Today. Accessed 4 January 2010 from http://www.sharpbrains.com/blog/2006/10/19/cognitive-neuroscience-and-education-today Wallace, R W 2001 The Dynamics of Team Formation. The Beagle. Accessed 4 January 2010 from http://news.bmn.com/hmsbeagle/113/notes/adapt?print=yes Zull, J 2006 Brain and Mind Fitness News: An ape can do this. Can we not? An Interview. Accessed 4 January 2010 from http://sharpbrains.wordpress.com/2006/10/12/an-ape-can-do-this-can-we-not/ Zull, J 2002 Getting the Brain in Gear. The Art of Changing the Brain: Enriching the Practice of Teaching by Exploring the Biology of Learning. Sterling Virginia: Stylus Publishing, LLC Read More